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UK govt announces changes to shake up house planning and get more homes built
A series of planning reforms announced today by the UK government aimed at boosting house building have been widely welcomed by the property and construction industries Under the changes planning permission will be granted automatically for homes on brownfield sites, even over ruling wishes of local authorities in England. But experts warned that councils will not like the move although they have been heavily criticised for not creating local plans and taking too long to make decisions. Ministers will also get powers to seize disused land which is suitable for houses and major housing projects are set to be fast tracked through the planning system. There will be penalties for local authorities that make 50% or fewer planning decisions on time in a bid to inject some speed into the planning process. The rules on extensions in London are to be relaxed in terms of building upwards to match neighbouring levels and the Mayors of London and Manchester are to get power over planning in their cities. The British Property Federation (BPF) said the changes have the potential to be an enormous boon to housing supply but it warned that some of the new measures will only work if the government addresses the severe shortage of funds within local authority planning departments. The BPF also urged the government not to over focus on providing new homes for sale and pointed out that there is also a need for more purpose built rental accommodation in order to combat the housing shortage and deliver a more balanced housing market. Melanie Leech, chief executive of the BPF, British Property Federation, called for a dialogue with both the public and private sectors on how to address the severe shortage of funds which is afflicting local planning departments. ‘The private sector will need to play a part in helping to address this funds shortage, and this needs to be explored fully if we want these new measures to work. We would also have liked to have seen some commitment to growing the purpose built rental sector, which has an important part to play in solving the housing crisis and creating a balanced housing market,’ she said. ‘We warmly welcome the government’s recognition of how a functioning and efficient planning system can contribute to the UK’s growth by creating not just new homes, but also the infrastructure that supports great places,’ she added. Leech explained that a lack of dynamism among local authorities on Local Plans should be addressed by the government being able to intervene. ‘Local Plans are fundamental to growth, and we are firm believers in a plan led system. There are still areas, however, without a Local Plan in place, and so we are pleased to see that government is taking steps to ensure that plans are delivered in a timely fashion,’ she said. ‘A number of recalcitrant local authorities have been dragging their feet and producing bloated local plans that are overly long and simply… Continue reading
House prices up 2.5% in the European Union in first quarter of 2015
House prices increased by 0.9% in the euro area and by 2.5% in the European Union in the first quarter of 2015, according to the latest data to be published. The figures from Eurostat, the statistical office of the European Union, also show that compared with the first quarter of 2014 prices increased by 0.3% in the euro area and 0.6% in the EU. But there is a huge difference between the fastest growing housing markets and those where prices are still falling. The highest annual increases in house prices in the first quarter of 2015 were recorded in Ireland with growth of 16.8%, followed by Sweden at 11.6%, Hungary at 9.7% and the UK at 8.5%. The largest annual fall in house prices was recorded in Latvia where prices are down 5.8%, followed by Italy down 3.3%, France down 1.6% and Slovenia down 1.4%. On a quarterly basis the biggest growth was seen in Romania where prices increased by 4.1% compared with the fourth quarter of 2014, followed by Sweden with quarterly growth of 3.9%, Hungary up 3.7% and Denmark up 3.5%. The largest quarterly house price falls were recorded in Belgium, Cyprus and Croatia with all three countries seeing growth down by 2.8%. There is no data available for Greece or Poland so it is not possible to see how their property markets have been fairing. An in depth look at some of the figures show how property markets, even in countries with strong price growth are wavering. Ireland may have the strongest annual growth but prices fell by 0.9% in the first quarter of 2015 compared with growth of 3.9% in the fourth quarter of 2014. In Spain the market has been pretty stable. Prices are up 1.6% year on year and have been increasing steadily each quarter but this steady growth was halted in the first quarter of 2015 when prices dipped 0.5%. A similar pattern can be seen in neighbouring Portugal. France has seen prices steadily falling and down 1.6% year on year in the first quarter of 2015, but this decline is down from the 2.2% annual fall recorded in the fourth quarter of 2014. Continue reading
Lettings industry unhappy about proposed tenancy changes in Scotland
Every summer on top of the thousands of tourists that arrive in Edinburgh there are thousands more seeking short term rentals for the duration of the city’s famous International Festival and Fringe. But concern is being expressed that proposed changes to the lettings market in Scotland put forward by the government could adversely affect the private rented sector’s ability to cope with the influx. On top of this there are students seeking properties to rent when the university term starts and this too could be affected by the plans, according to an analysis report from Lettingstats, part of the online property lettings firm Lettingweb. The Scottish Government has proposed that assured and short assured tenancies should be replaced by the Scottish Private Rented Tenancy (SPRT) for all letting in the private sector. It would make the current situation where a landlord rents to students during term time then to tourists and Festival workers during the summer without having to end and start a new tenancy impossible. Lettingstats believes that these new tenancy rules will stop the ability of key providers in the private rental market to offer guaranteed accommodation for both students and festival visitors. It could also affect landlords around the country who rent to students. It says that the legislation, scheduled for the autumn, will force private landlords, Edinburgh’s universities, and PBSAs to offer unlimited tenancies with no clear end dates, instantly removing these landlords’ capacity to know when they can market their properties to festival performers, visitors and students alike. ‘Private rented housing stock and university accommodation is critical to the success of Edinburgh’s festivals. The new tenancy reform proposals may be well intentioned, but the Scottish Government and City of Edinburgh Council have so far ignored the dire warnings consistently presented to them from across the entire private rented sector,’ said Lettingweb’s head of research, Dan Cookson. ‘Given that the identification of additional Festival accommodation was seen as a key recommendation in the city’s recent festival strategy, it is bizarre that the city would support tenancy reform changes that will immediately put at risk much needed accommodation capacity within the city,’ he explained. ‘Just the prospect of this legislation being introduced is already having a wider impact on the private rented sector. Landlords are starting to move to protect themselves by either transferring their tenancies over to short term only, or even considering disinvesting which would be a disaster as falling supply will inevitably push up prices,’ he pointed out. ‘Ultimately this legislation will have an unintended negative impact upon the availability of housing stock for residents, students and visitors alike. It is hugely disappointing that policy makers are ignoring the stark warnings of the sector,’ he added. Letting agents are also expressing concern. Stuart Montgomery, director of Rettie & Co, believes the legislation is based on a fallacy that landlords evict tenants from their homes… Continue reading
