Tag Archives: construction
Investigation reveals alarming flood risk for new homes in UK
Floods have already hit thousands of homes in the UK this winter and now an investigation has found that many more homes being built under the government’s new home building drive are also at risk. Nearly half the areas earmarked for fast tracked housing development by a flagship government scheme are at significant risk of flooding, making thousands of new homes potentially uninsurable, according to a Greenpeace investigation. The sites targeted by a recent house building drive unveiled by Chancellor George Osborne include two areas threatened by the latest floods and others which were inundated during previous emergencies, the Greenpeace report says. It claims that the findings raise more questions about the government’s approach to flood risk management amidst growing controversy over delays in the construction of flood defences for existing homes in areas hit by flooding in Cumbria and Lancashire in recent days. Earlier this year, the Chancellor announced a flagship housing scheme which saw 20 brownfield sites around the country designated as new housing zones, with local councils given access to money and experts to expedite the building process. Greenpeace UK researchers used details obtained through Freedom of Information requests to plot the location of these housing zones, and cross referenced this with flood risk maps from the Environment Agency. They found around nine of the 20 zones, comprising a total of 9,000 planned new homes, are in areas now identified as being partially or fully at risk from flooding. Under the terms of a new government flood insurance scheme soon to be implemented, these properties would be excluded from cover. The report claims that this would leave home owners reliant on commercial insurers who may choose not to insure homes built in flood zones, or do so at prohibitively expensive rates. A spokesperson for Flood Re confirmed to Greenpeace that ‘properties built from 2009 onwards’ in flood risk areas are still excluded from the government scheme. ‘It would be irresponsible to incentivise developers to build in such areas simply because those properties could have their insured flood risk ceded to Flood Re,’ the spokesperson added. Greenpeace UK also obtained new figures showing that the number of people employed by the Environment Agency to work on Flood and Coastal Erosion Risk Management fell by 230, a 5% cut, in the last three years. The agency plays a key role advising councils on flood risk. ‘The current flood emergency isn’t even over yet, and the government is already storing up the next one. Rushing to build thousands of new homes in flood risk areas whilst at the same time cutting flood protection staff is a recipe for disaster,’ said Greenpeace UK chief scientist Dr Doug Parr. ‘When it comes to energy, flood defences, and other big infrastructure projects, we need the government's hands to start following what the government's mouth is saying rather than acting of their own accord,’ he added. The details in the report indicate that in Yorkshire there are flood warnings… Continue reading
UK govt announces review to cut red tape for home builders
House builders in the UK are to have their say on red tape in the industry and how ineffective rules are hampering them from building more homes. The government has announced a Cutting Red Tape review which aims to uncover the issues that have the biggest effect on house builders and also wants to gather the views of smaller firms to understand the unique pressures they face. Ministers said that the wide ranging review will capture the experiences of all those involved in building homes, including developers, planners and trade associations. ‘This review will give house builders and smaller construction businesses a powerful voice as part of our £10 billion deregulation drive. Where rules are too complicated, ineffective or poorly enforced, I want to hear about it and the government will take action. Together we can cut red tape and get Britain building,’ said Business Secretary Sajid Javid. He pointed out that previously the Housing and Construction Red Tape Challenge delivered significant reforms and led to a review of local housing standards by the Department for Communities and Local Government. Housing Minister Brandon Lewis said he is determined to remove barriers faced by house builders to ensure more homes can be built to help reach the recently announced new targets for home building. ‘We want to hear the views of firms big and small so we can remove unnecessary red tape and help house builders do what they do best, building the homes we need,’ he added. He explained that the key starting points for the review are based on the priorities raised by the Task Force which include roads and infrastructure rules for new housing developments and environmental requirements, particularly European Union rules such as the Habitats Directive and wider EU environmental permit requirements. It will also look at rules that affect utilities such as electricity, gas and water as well as broadband infrastructure, and the government is also keen to look at the changes made to the Construction, Design and Management Regulations, as well as any examples of EU rules that are being implemented too strictly. John Allan, national chairman of the Federation of Small Businesses, said that the government is right to listen to the needs of smaller businesses. ‘In the 1980s, smaller house builders delivered around two thirds of our new homes. Today, it is less than a third. If the government can encourage small firms back into house building, that would be a major step towards meeting this country’s housing needs,’ he explained. ‘The new Cutting Red Tape review will look at the way the law is enforced, as well as whether the rules themselves are proportionate and fit for purpose. The responses from house builders will lead to government taking concrete steps to remove burdens on business,’ he added. The announcement was also welcomed by Stewart Baseley, executive chairman of the Home Builders Federation. ‘As the industry looks to drive further increases in housing supply we welcome moves to reduce… Continue reading
Latest data shows remortgage activity in the UK soared in 2015
Remortgaging activity in the UK has soared over the past year with the total number of valuations some 53% higher than in October 2014. The data from the latest research report from Connells Survey & Valuation says that this is despite the seasonal fall, which saw activity from remortgaging in October drop 21% compared to September 2015. Those looking for cheaper rates have likely been tempted to remortgage to take advantage of the rock-bottom interest rates while they last, according to John Baghsaw, the firm’s corporate services director. ‘Many are also taking this opportunity to remortgage in order to release equity and so upgrade their current property. That said, it’s still a great time to move house. Home sales continue to climb and the Government is improving the liquidity in the housing market by kick starting the construction of starter and mid-range homes. In addition, low interest rates are not just a remortgagors dream, they also make it easier for home movers to climb the property ladder,’ he explained. Despite home mover valuation activity falling 27% between September and October of this year, growth on a 12 month basis remains solid. The sector registered 14% growth in October 2015, when compared to October of last year. Valuation activity for all purposes remains strong, climbing 28% between October 2014 and October 2015, despite dropping back by 21% compared to last month, the data also shows and Bagshaw pointed out that home movers, traditionally the bedrock of the housing market, have experienced more steady activity in October compared to previous months. ‘But with home values continuing to rise solidly and mortgage rates remaining low, this seems like more of a seasonal blip than the start of a trend. By most measures, it’s still a great time to buy. The housing market’s forward indicators remain strong. Activity in all sectors is up on last year, a reflection of a positive combination of economic growth, rising consumer confidence and increasing real terms wages,’ he added. Both the buy to let and first time buyer sectors recorded strong year on year activity in October. Valuations carried out for buy to let investors grew by 25% between October of this year and October 2014, while first time buyer valuations increased by 20% over the same period. However, both sectors also experienced a slight monthly downturn, with October activity in the buy to let sector down by 9% on September. Meanwhile, first time buyer activity saw a 17% dip over the same period. The buy to let sector continues to thrive, albeit it at a steadier pace than in previous months. The fundamentals of its profitability have remained intact. Demand for housing still exceeds supply and very low mortgage rates remain in abundance. Moreover, the Bank of England announced recently that any rate rise is off the cards for the immediate future, meaning the field is still open for many more investors to acquire a portfolio and become a new… Continue reading
