Tag Archives: crisis
BPF calls for policy measures to support commercial real estate post Brexit vote
The British Property Federation (BPF) has called in the UK Government to consider a raft of policy measures to support real estate, particularly the commercial sector. The calls comes following the publication of the latest report from the Royal Institute of Chartered Surveyors (RICS) which shows a significant decline in confidence, activity and investor interest in UK commercial real estate. The report, covering the second quarter of 2016, says that investment demand for commercial real estate has fallen sharply and that, although some immediate turbulence was to be expected following the European Union referendum, the sector may in fact face a far more significant downturn. The BPF is urging the Government to monitor the situation closely and consider introducing a package of support for the real estate sector, including accelerating its proposed reform of business rates to support activity in the broader business economy. It also wants it to delay the introduction of plans to restrict the tax deductibility of corporate interest expense for a year until 2018, to ensure that the rules are implemented in a way that doesn’t deter investment. And the BBP suggests the introduction of a range of tax reliefs for Build to Rent development, including CIL relief, relief for modular construction, and stamp duty relief for new build to rent developments on the condition that they will be let on tenancies of three years or longer with rent increases tied to inflation. It also wants an absolute and continued commitment to devolution and public infrastructure investment in the HS2 rail project, the East-West Rail Line, Crossrail 2, and an imperative decision on growing airport capacity. ‘This is not the time for knee jerk reactions, but commercial property and a number of the government’s priorities are interdependent,’ said Ian Fletcher, director of real estate policy at the BPF. ‘Ministers must closely monitor developments in the commercial property market and be ready to act in weeks, not months, if evidence continues of a slowdown in investment,’ he pointed out. ‘Commercial property investment is not always an obvious priority for governments because its social and economic impacts are indirect, but construction and development activity flow from it, ultimately impacting on jobs and economic growth,’ he added. ‘In scenarios like this the focus is often on construction, but you don’t get construction without an investment client, so it is essential that government monitors fluctuations in investment very closely,’ he concluded. Continue reading
More people moving out of London with research suggesting it is due to prices
There are more home owners moving out London than ever before with more than 280,000 moving away in 2015, an increase of 3% compared to 2014, a new analysis shows. The exodus is led by young people in their twenties and thirties, suggesting that rising house prices could be behind the decision, according to the research from multi-disciplinary property company Humberts. The report by ResiAnalytics for Humberts, which analyses the newly released data from the Office of National Statistics (ONS), shows that 26% were aged 20 to 29 but this was less than the 30% recorded in 2014, while 23% were aged 30 to 39, up slightly from the 22% recorded in 2014. ‘The average cost of a London house today is almost double the English average at £470,000 compared to £224,000 and consequently we are seeing more and more people cashing in and moving out,’ said Jeremy Campbell-Harris from Humberts’ London Country House Department. He believes that those in their 20s probably struggle to afford to buy a home in London and those in their 30s who may have young children are looking for a bigger home and more peaceful surroundings. Birmingham, the UK’s second city where average house prices are less than half those in London, tops the list of most popular destinations for London leavers. Brighton and Hove, where house prices are similar to those in London, is also popular choice due to being commutable yet on the coast. In third place is Thurrock, followed by Epping Forest, Elmbridge, Bristol, Medway, Manchester, Dartford, Hertsmere, Luton, Reigate and Banstead, Slough, Canterbury, Welwyn Hatfield, Leeds, Sevenoaks, Nottingham, Spelthorne and finally Coventry makes up the top 20 destinations. The research also looked at regions which have grown in popularity over the past five years. The East of England has seen a 4% increase in the number of people moving from London in 2015 compared with 2011. This is in contrast to the South East, which has seen a 3% fall in the number moving to the region. ‘The price of housing in London and the South East has risen so significantly over the years that Londoners are looking for new areas where their money can go further. Of all the regions in England and Wales, the East of England and the South West are the only two regions that have seen increases in the number of Londoners moving there,’ said Campbell-Harris. ‘Better broadband connections, better transport links and great value for money are three main reasons why these areas are proving to be increasingly popular amongst people from the Capital,’ he added. Continue reading
Lack of suitable homes prevents over 55s in UK from moving
More than 500,000 home owners aged 55 and over in the UK want to move but do not because of lack of suitable housing, new research has found. Some 19% in this age group considered moving in the past two years but have not done so while 23% who considered moving said that a lack of suitable housing was the main reason they did not do so. The stress and upheaval of moving as well as not wanting to be away from friends, neighbours and community are also obstacles to moving, according to the annual home owner survey conducted by YouGov for the Home Owners Alliance and BLP Insurance. The survey report says that with the recent Brexit decision, it is uncertain what the impact on new housing is likely to be but this does not take away from the fact that tackling the UK housing shortage remains a pressing concern. So called last time buyers, we have been told, could help ease the housing crisis in the UK, it suggests. If older home owners living in homes that are under occupied moved to smaller properties it would free up more housing stock. There are an estimated 11.4 million homeowners age 55 and over. Overall some 30% of home owners aged 55 and over said stress and upheaval are reasons for not moving compared to 21% of all home owners while 23% did not want to move away from friends compared with 17%. Prices are not as much of a barrier at 22% compared to 31%. When thinking about a future move, top priorities are similar regardless of age. Good build quality is important to 71%, spacious rooms 72% and parking 69%. However, compared with UK home owners generally, a greater proportion of home owners age 55 or older identify availability of parking at 77% to 69%, low running costs at 70% compared to 59%, proximity to shops at 66% to 55%, good transport links 56% to 47%. ‘The recent Brexit decision means we are now in the midst of uncertain times and new housing is likely to be a victim. Government needs to focus efforts on negotiating a European exit but they must not drop the ball in delivering new housing that meets the needs of last time buyers,’ said Paula Higgins, chief executive officer of the Home Owners Alliance. ‘House builders can't be allowed to sit on their hands and land bank. The government needs to keep them building and building houses that meet the needs of last time buyers as well as first time buyers,’ she added. According to Kim Vernau, chief executive officer of, BLP Insurance, the issues highlighted in the survey that face last time buyers are as acute as those issues encountered by first time buyers. ‘If we wish to provide the required quality of housing that addresses these concerns we desperately need an appropriate mix of well-designed homes alongside adequate local infrastructure… Continue reading
