Tag Archives: construction
Approved home lending in UK up in June month on month
The number of loan approvals for house purchase in the UK increased by 2.7% in June compared to the previous months, the latest Bank of England data shows. Loan approvals reached 66,582 compared to the average of 62,971 over the previous six months and the value of these loan approvals has increased 6.48% month on month, the data also shows. The number of approvals for remortgaging was 36,620, compared to the average of 33,759 over the previous six months while the number of approvals for other purposes was 10,800, compared to the average of 9,918 over the previous six months. It is good news for the homes market according to Adrian Gill, director of Your Move and Reeds Rains estate agents. ‘Mortgage approvals have filtered into a faster lane, and are speeding away from May’s speed bump. Compared to a year ago, lending has also covered a fair distance, and the road ahead looks promising,’ he said. ‘Both house prices and sales are driving forward steadily, as renewed confidence fuels the market this summer. But this is increasingly witnessed by a congestion of buyers. The supply of properties is struggling to keep up and needs a serious boost if the upwards trend in borrowing continues,’ he added. Peter Rollings, chief executive officer of Marsh & Parsons, pointed out that the month on month boost has nearly brought lending back into line with April activity, and the energy building up in the housing market should carry it further forward. ‘There’s now plenty of clear blue sky between borrowing totals now and a year ago, as buyer demand continues to mount. In London, we saw new buyer registrations climb 27% from January to June, and properties are changing hands quickly,’ he explained. ‘This will cause further price rises over the summer, but buyers have plenty of cause for confidence, as cheap mortgage finance and smaller Stamp Duty fees keep home ownership within grasp,’ he added. Continue reading
London new housing zone target met ahead of schedule
The Mayor of London Boris Johnson has announced that his key target of 50,000 new homes for Londoners as part of a landmark Housing Zone scheme has been met ahead of schedule. A three further zones already announced will fast track much needed development in the boroughs of Brent, Westminster and Sutton along with continued efforts to free up land for new housing, he added. Other measures include the creation of the London Land Commission to identify all public land in London and strengthen its redevelopment alongside new transport infrastructure, the release of 99% of all land held in the Mayor’s own portfolio, and the establishment of the London Housing Bank to provide finance to accelerate the build-out of large sites. Eighteen out of a promised 20 Housing Zones across London have now been announced, bringing the total number of homes to be built to 50,965 of which nearly one third will be affordable to buy or rent. There will be two further zones confirmed by the late summer. Housing Zones are a collaborative effort between the Greater London Authority, the government and local boroughs to streamline approval processes and speed up development in target areas where it has previously been held back, unlocking valuable brownfield land to meet London’s growing need for housing. The Mayor will invest nearly £44 million in three new Housing Zones in vastly different areas of London which will together provide nearly 6,600 new homes as well as improved transport links, more than 13,000 construction jobs and new retail precincts, transforming these areas into new urban districts for generations of Londoners. ‘We have worked very hard to reach our goal of 50,000 homes, and we’ve done it with two more Housing Zones to go. This scheme has proven extremely popular with boroughs, who have clearly been looking for just that extra bit of assistance in revving up their housebuilding to answer clear demand from Londoners,’ said Johnson. Deputy Mayor for Housing, Richard Blakeway, visited a development at Wembley Park which will deliver 1,200 new homes in the shadow of the famous stadium, situated within the bounds of a second Housing Zone within Brent. In addition, the Edgware Road Housing Zone in the borough of Westminster will provide 1,113 new homes in the heart of London, adjacent to the major commercial centres of the West End and Paddington, of which 537 will be affordable. The borough will regenerate two existing estates with higher density housing, adding to the total number of affordable homes in the area. Once the Crossrail interchange is operational at Paddington Station from 2018, residents will also have access to this new transport link a mere 15 minutes away. ‘This is a great outcome for Westminster and the local community. The Futures Steering Group, comprised of residents and local businesses, has worked closely with the Council to help regenerate and improve this area for the benefit of local residents and businesses,’ said Westminster City Council’s cabinet member… Continue reading
British farm land prices more tightly pegged to local conditions
The British farmland market is becoming more finely balanced leading to a greater range in values achieved with sale prices more tightly pegged to local supply and the number of potential buyers. Overall values increased by 0.2% during the first six months of the year, a reduced rate, according to Savills most recent review of the GB farmland market. But this conceals some localised falls in prime arable values, where there is now evidence of more price sensitive demand coupled with reduced competition between farmer and non farmer/investor buyers. Indeed, average grade 3 grassland values, which in recent years lagged way behind arable values continue to strengthen with an average uplift of 1% during the half year. Meanwhile, 5% more land was publicly marketed in compared with the first half of 2014. Almost half of the acres advertised were arable compared with around 30% in the previous four years. ‘There is evidence of some farmers, especially those without successors taking the opportunity of current record values to exit the industry,’ said Alex Lawson director of Savills farms and estates. The report also shows that non-farmer buyers overtook farmers as the principal buyers of land and the proportion of farmers buyers is now at its lowest since 2003. However, of those continuing to buy land the proportion doing so in order to expand their existing businesses is rising and now accounts for the reason behind half of all purchases. ‘There are many entrepreneurs still growing their businesses, despite current commodity prices, reflecting the longer term view they take. It also reflects the fact that many farming businesses now produce significant non-farming income which helps spread business risk,’ said Ian Bailey of Savills rural research. A breakdown of the figures shows that 85,000 acres were publicly marketed in the first half of 2015 which is 5% more than in the same period in 2014 but 1% less than the average of the same period of the previous five years. In England 13% more land was publicly marketed in the first half of 2015 at 65,500 acres compared with 57,100 acres in the same period of 2014, which is 7% more than the five year average of 60,100 acres. Supply in Scotland fell by 7% to around 18,500 acres which was very similar to 2013. Here sellers and buyers continue to be affected by uncertainty surrounding land reform, the general election result and reform of the Common Agricultural Policy. Welsh land supply has dwindled most dramatically, with only 1,900 acres for sale so far in 2015. This is less than half the area marketed in 2014 and of the average area over the past five years. ‘Almost half of the acres advertised were arable compared with around 30% in the previous four years. This shift and the regional increases in supply are, to some degree, reflected in the pressures on the arable and regional value growth noted… Continue reading
