Tag Archives: construction
Majority of home owners aged 55 and over in UK don’t want to downsize
Most people in the UK aged 55 and over have no intention of downsizing to a smaller property and it lack of suitable homes available that is putting them off, according to new research. Some 58% don’t want to move despite calls from the property and construction industry for more to be done to free up homes for first time buyers and second steppers, according to the research from My Home Move. For those that would consider downsizing a the lack of suitable properties and the costs involved in moving, including Stamp Duty, represent barriers to doing so. Some 46% of would-be downsizers want to move into a bungalow, while 20% are looking for a detached property while 52% want a property that is easier to manage and 21% want to release equity to help loved ones and enjoy life’s luxuries ‘The housing market has been suffering from a lack of stock for over 12 months, causing demand to outstrip supply time and time again. This has resulted in sky high house prices, instances of gazumping increasing and the Bank of Mum and Dad being called upon regularly to help first time buyers with their deposit,’ said Doug Crawford, chief executive officer of My Home Move. ‘Unfortunately, the findings from our survey suggest the situation is unlikely to ease; especially as 58% of those questioned have no intention of downsizing to release more top end properties onto the market anytime soon,’ he added. The survey also discovered that for the 25% who would like to downsize real and urgent barriers were stopping them from putting their homes on the market. Some 39% said there are not enough of the right kind of properties available to move into, 40% saw the costs involved in moving, including Stamp Duty Land Tax, as too prohibitive to consider moving now. ‘Despite the changes to Stamp Duty in 2014, the costs involved in moving can still tally into the thousands. This is especially true since the introduction of the 3% surcharge for additional properties. For those on a fixed income or heading towards retirement, it is not surprising that the financial reality is a stumbling block,’ Crawford explained. ‘We have seen stamp duty holidays for first time buyers in the past, so there is no reason the government couldn’t extend a similar scheme to downsizers, to help free up the market and get transactions moving,’ he pointed out. Continue reading
Bridging lending makes positive start to 2016 in UK
Gross annual bridging lending in the UK increased to £3.6 billion in February, up from £3.5 billion at the end of 2015 according to the latest sector index to be published. However, this expansion represents a modest 3% lift in gross annual lending since December, showing that growth has stabilised somewhat from the previous year, according to the West One Bridging index. The index report suggests that growth in short term finance has been driven by a number of factors including an uplift in demand for bridge to let loans in advance of April’s Stamp Duty surcharge. It points out that with property transactions rising 16.1% year on year in February, there has been a surge in demand for bridging finance in order to unblock property chains and raise additional finance. The sale of residential properties at auction also hit a record high in February, rising more than 25% compared to the same month last year. Bridging loans are usually the best option for buyers requiring additional finance for auction purchases because traditional forms of borrowing typically won’t be approved by lenders in time to complete on the sale. This continued growth in auction sales has provided a significant boost to bridging lending in the first two months of the year, the report explains. However, total bridging lending growth was tempered by a month on month flattening of construction output in February which was down by 0.3% alongside a slight 2% contraction of the commercial property market. With smaller developers using short term finance to aid in the completion of projects and specialist finance providers helping fill the post-recession gap in commercial lending, the dip in these markets has had some influence on growth in the short term finance sector. However these markets should improve following the reduction in Stamp Duty announced in March’s budget. ‘A 3% rise in lending may seem moderate, but that’s relative to some significant recent sector expansion. Moreover, we’ve seen healthy growth continuing in the weeks since February. A major contributor is professionals using bridging as part of their strategy to buy residential properties in need of renovation, improve them and re-sell at a healthy profit,’ said Stephen Wasserman, managing director of West One Loans. ‘In this case, the flexibility of bridging finance is well suited to financing such activity. With this group often buying at auction, our experience fits with the surge in auction buying noted. Moreover, we anticipate further growth from this group, favoured by the underlying lack of supply of new homes’ he pointed out. ‘Recently released DCLG figures showed that housing stock growth of 0.73% lagged population growth. That means renovating undesirable properties will continue to be a profitable and attractive business, from which bridging will benefit. DCLG data also showed a greater rise in private rented housing over owner occupied. We’ve also observed strong growth in bridging to acquire properties,… Continue reading
New partnership meets for first time to boost UK home building industry
A new partnership made up of representatives of house builders, warranty providers and training and trade bodies aimed at attracting new people to the construction industry in the UK has met for the first time. The Board of the Home Building Skills Partnership (HBP) has started work in earnest on plans to attract and train tens of thousands of new workers, led by Redrow Homes chief executive officer John Tutte with a strong group of leaders from across the home building sector. The HBP aims to develop, grow and sustain a programme to provide the workforce the industry requires to deliver the further increases in housing supply the country desperately needs. It will focus on attracting new entrants into the industry, and on providing focussed training to develop the qualified workforce needed to construct today's high quality new homes. The Board will guide and direct the Partnership and define its operational parameters and priorities. It will also oversee the recruitment of a dedicated team that, in collaboration with the wider supply chain, will drive forward the initiatives on a day to day basis. Over its first four years it is hoped that HSP programmes will engage with over 3,500 companies, more than 40,000 workers and some 180 Colleges and Training Providers. ‘The house building industry is totally committed to increasing output and meeting the housing needs of the country. The Partnership will help us attract and train the people we need to deliver more, high quality homes in the coming years,’ said Tutte. ‘The broad experience of the Board we have recruited will help us put in place the building blocks we need to succeed. Over the coming years the Partnership will help secure tens of thousands of skilled employees for house builders and the wider industry who will help us solve the housing crisis we now face. More quality people will enable us to deliver more quality homes,’ he added. The HBP aims to develop an improved public identity for home building, influence the development of a more professional, fully trained workforce and increase productivity and the value added per employee. It also aims to improve the quality and relevance of industry training, co-ordinate the tackling of common workforce challenges and influence and leverage investment in skills to the benefit of the home building industry. Continue reading
