Tag Archives: education
Many parts of New Zealand seeing new home development boom
The home building boom in New Zealand is continuing to gather momentum with planning consents up 13% in the 12 months to July 2016, and up 2% month on month. p 52% in Bay of Plenty, up 37% in Waikato and up 21% in Otago. The value of residential and commercial building work is also booming and hit an all-time record of $18.5 billion for the year to July, up from $15.6 billion the previous year. Of this, $6.3 billion was non-residential, and half of that was for education buildings such as at Victoria, Canterbury and Otago universities. In Auckland, the total of all building work increased 32% to $6.9 billion for the year, while residential increased 29% to $4.4 billion. In Christchurch post-earthquake building is continuing with the latest $300 million development of 600 homes confirmed by Building and Housing Minister Nick Smith. The development adds to three set up under the Christchurch Housing Accord, between the Christchurch City Council and the Government, which aimed to increase the longer term supply and affordability of homes and are the final phase of the Government’s housing response to the earthquakes. ‘I am hugely encouraged by the progress we are making in Christchurch, where the market is now well recovered from the loss of 10,500 homes in the quakes. Housing in Christchurch was an acute problem two years ago, with costs rising rapidly and record numbers of people requiring emergency housing,’ said Smith. He pointed out that rents in Christchurch have declined by 7% in the past year as compared to a national increase of 3% and house prices have increased 2.6% compared to the national increase of 14.2%. ‘We are now well down the road of recovery. The completion of these four Government-initiated housing projects and the council’s new housing organisation will help give Christchurch a mix of social and affordable housing to meet future needs,’ added Smith. Continue reading
UK’s new housing minister urged to get on with tackling major challenges
The new housing minister Gavin Barwell has been urged to tackle the major challenges facing the property industry including lack of supply and new home building. Estate agents and letting agents welcomed his appointment in the new government under new Prime Minister Theresa May and said that his appointment as Minister for London should help tackle the housing issues that particularly affect the capital city. ‘This is a crucial time for housing, with demand greatly outstripping supply and an urgent need to reshape Britain’s housing mix,’ said David Cox, managing director of the Association of Residential Lettings Agents (ARLA) and Mark Hayward, managing director of the National Association of Estate Agents, in a joint statement. ‘We worked closely with the previous administration to increase transparency in the UK property and sector and remain very supportive of the need for a beneficial ownership register,’ they pointed out. ‘Property transparency is particularly a problem in London where housing stock has increasingly become a vehicle for money laundering operations, so we applaud the decision to provide the Minister with a duel oversight for London,’ they added. The statement pointed out that the Government’s decision to sell the Land Registry risks reversing its good work on transparency and they are calling on the new minister to work with the new Business, Energy and Industrial Strategy Department to think again on this proposal. They say it is also essential to honour the commitment of the previous Housing Minister to bring forward a review of the need for mandatory Client Money Protection (CMP) for letting agents, following the discretionary powers that were brought in as part of the Housing and Planning Act as they believe that only this can provide the adequate level of protection for landlords and tenants alike. ‘These challenges are not insurmountable and we greatly look forward to working with the new Minister to find a solution to these issues in the months and years ahead,’ the statement concluded. Barwell said that he is looking forward to working with councils, housing associations, developers and investors to ensure ‘we build the homes people need and deserve and to working with the Mayor of London to ensure the continued success of our wonderful diverse capital and that all Londoners share in it’. Barwell has previously held various parliamentary private secretary roles, including to the Minister of State for Decentralisation and Planning Policy and Secretary of State for Education, and has more recently been Assistant Government Whip and Lord Commissioner of HM Treasury. He is taking over from Brandon Lewis who has moved to the position of Minister of State for Policing and Fire Service. Barwell joins the team at the Department for Communities and Local Government (DCLG) which is led by Sajid Javid, who was appointed Communities Secretary last week. Continue reading
Uncertainty over UK referendum on EU already affecting property markets
The forthcoming UK referendum on the future of the country in the European Union is already affecting property markets with uncertainty creeping into decision making, according to a new analysis. The Royal Institution of Chartered Surveyors (RICS) has looked at what the impact is currently and also assesses what the outcome of a leave and a stay vote might be. It points out that its recent residential market surveys indicate a chronic shortage of housing across the UK. Residential investment transactions in the residential sector have slowed and limited house buying transactions across the house price spectrum. ‘This is not unexpected as there's usually a slowing of residential transactions before any national poll. After an election vote we typically see the residential sector recover and bounce back as stability and confidence returns,’ the report says. ‘Should the UK opt for a Brexit, we could assume that uncertainty could linger while the UK Government negotiates new trade deals and relationships with the EU and third countries,’ it adds. The analysis report explains that the lower to middle priced property market is, in the main, directed by domestic participants so the uncertainty has had less impact on demand and house prices at this end of the market when compared to the higher end. However, a significant number of higher end properties, particularly those in London and the south east, are purchased by EU and non-EU individuals and the report suggests that a Brexit could see less demand for higher end properties from these individuals, thus relieving pressure in demand for higher end residential areas. ‘We can, therefore, suggest house prices could decrease in the immediate to short term,’ the report states. It also suggests that there could be an effect on student accommodation. There was over $6.5 billion of investment in the UK student accommodation sector in the first three quarters of 2015. ‘Changing higher education enrolment rules could deter international students thus affecting demand for student and PRS accommodation,’ it adds. It also points out that the concern is generated by a series of unknowns for decision makers. There is risk generated by the debate in the lead up to the June referendum, uncertainty over the referendum outcome, uncertainty over the process for exit if it comes to that. There would also be uncertainty over the renegotiated package if the UK remain in the EU and uncertainty over the exit negotiation period and potential trade deals. ‘Anecdotally, this uncertainty has already had an impact on decisions in property markets and heightened the perception of risk attached to the UK. Investors are hesitating, occupiers re-planning their footprints, and building pipelines are slowing,’ the report says. It explains that the impact of the referendum has been likened to the uncertainty and risk created in domestic and FDI investments markets by General Elections, and the nearest comparator is the Scottish Independence referendum in September 2014. But RICS believes that the impact of the EU referendum is greater than those,… Continue reading
