Tag Archives: cities
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
Australian city property prices up almost 10% year on year
Property prices in Australian cities increased by 2% in the second quarter of 2015 and are now 9.8% higher compared to a year ago, the latest index data shows. The figures from CoreLogic RP Data reveal that the growth has gained momentum as the year has progressed and the firm’s head of research, Tim Lawless, believes interest rates cuts in February and May have contributed in pushing capital gains higher. ‘Growth conditions had been moderating from April last year through to the end of January 2015. With the RBA cutting the cash rate in February, there was an instant buyer reaction across the Sydney and Melbourne housing markets where auction clearance rates surged back to levels not seen since 2009, capital gains once again accelerated,’ he explained. He pointed out that Sydney and Melbourne homes are selling in record time, some 26 days and 32 days respectively. But growth is not even. While Sydney and Melbourne have seen dwelling values increase by 16.2% and 10.2% over the financial year respectively, every other capital city has seen growth of less than 5% and values are down over the year in Darwin by 2.9% and Perth by 0.9%. According to Lawless, the current housing growth cycle clearly highlights a divergence in capital gains across the capital cities. Since values started rising in May 2012, Sydney homes have seen a 43.1% surge in values and Melbourne values are up by 25.9%. Despite softer market conditions in Perth, property values are currently up 12.8%, the third highest growth rate across the capitals. Simultaneously, Brisbane's property market has shown the fourth highest rate of growth at 12.4% followed by Adelaide at 10.4%, Hobart at 9.6%, Darwin at 8.9% and Canberra at 8.8%. ‘The three tiers of housing market performance can be best explained by economic and demographic factors where it's no coincidence that New South Wales and Victoria are recording the strongest economic conditions coupled with the strongest rates of migration which is fuelling housing demand. These states are more sheltered from the mining sector downturn and have benefited from the strong multiplier effect of housing construction as well as a vibrant financial services sector,’ said Lawless. ‘The Perth and Darwin markets are weakening in line with the downturn in the resources sector and an associated weakening in infrastructure investment and a marked slowdown in migration. Brisbane, Adelaide, Canberra and Hobart are seeing softer economic conditions and population growth compared with Sydney and Melbourne, however housing markets have shown some level of growth over the year,’ he added. Looking at the performance of detached housing versus apartments over the financial year, houses are clearly outperforming units in the capital gains stakes. Over the financial year, house values were 10.4% higher across the combined capitals index while unit values increased by a much lower 5.6%. The same trend where houses are showing a higher capital gain than units is evident across each of the capital cities except Hobart… Continue reading
Southern cities leading house price growth in the UK, latest index data suggests
UK house prices have increased by an average of £11,500 over the12 months to May 2015 with seven cities in the South of England significantly outperforming this level, the latest index shows. The average house in a city now costs £189,400 with London more than double this figure at £425,700, according to the data from residential property analyst Hometrack. The data also shows that on a month on month basis prices increased by 0.8% in May which is 3.8% above the peak of the market in 2007. Oxford has recorded the highest rise in the last 12 months with growth of £41,700, nearly quadruple the UK average of £11,500, followed by London at £38,900, Cambridge at £23,900, Bristol at £22,400, Southampton at £15,300, Bournemouth at £15,300 and Portsmouth at £15,000. Hometrack said that these house prices gains are a result of robust demand underpinned by the strength of these cities’ local economies and all 20 cities covered by the index recorded annual price rises. Those that saw the smallest rises were all in the north. In Liverpool prices increased by £4,200, Newcastle by £4,700 and Sheffield by £5,300 and these cities are still 14%, 8.5% and 3.8% respectively below their 2007. They are part of a group of nine cities in the north of England, Scotland and North Ireland that are recovering at a much slower pace due to weaker demand from house buyers. All cities except Aberdeen with a fall of 0.4%, recorded month on month price rises and Hometrack said that this could be partly due to a post-election bounce. Bristol led the way with a 1.3% increase followed by Cambridge, Leicester, Liverpool and Belfast all at 1.2%. ‘House prices have picked up momentum post-election. An increasing proportion of households are feeling the benefits of the improving economy, which means that house price growth is set to continue in the coming months. The greatest risk is an earlier than expected increase in interest rates which would knock market sentiment,’ said Richard Donnell, director of research at Hometrack. ‘The strong demand side recovery seen in southern England has yet to spread to other cities revealing the diverse nature of the housing market. All cities are making gains at different rates of growth, but the cities with the biggest increases all have something in common and that is strong local economies,’ he explained. He predicted that affordability pressures will bite at some point in the high value, high growth markets. ‘The double digit price growth registered in cities such as London, Oxford and Cambridge is being sustained by a lack of supply and below average transaction volumes with a third of sales funded by cash or buy to let mortgages,’ he pointed out. ‘London has the highest price to earnings ratio, but it covers a wide range of sub-markets. Over the last three years, the impetus for house price growth has shifted… Continue reading
