Tag Archives: financial
Some 200,000 new homes announced for the east of London
A new masterplan has been unveiled that will see 200,000 new homes built in the east of London, adding to a number of major developments already taking place in the area. The Mayor of London, Boris Johnson, announced the City in the East masterplan which includes development from London Bridge to the Isle of Dogs and Greenwich Peninsula, right through to Ilford in Essex and Dartford in Kent. He said that it is designed to bring together a vast number of major developments that are already taking place in the capital, known as designated Opportunity Areas, which have been identified as London's major source of brownfield land with significant capacity for new housing, commercial space and other development. In 2004, the Mayor's Office estimated East London had the capacity for 52,000 new homes. But detailed modelling, which includes linking 13 Opportunity Areas, carried out by City Hall but now a minimum of 203,500 homes could be delivered over the next 20 years. The City in the East document also contains a series of maps, which for the first time brings to life how the city is moving eastwards, covering much of the Thames Gateway, and could benefit from improvements to transport infrastructure such as Crossrail and HS1. Plans show an overground extension to Barking Riverside, which will enable the creation of 10,000 new homes and could be operational by 2020. The blueprint also includes longer term potential to place the A13 in a tunnel, deliver a new station and build new homes in the area. These projects are one of a number being made possible by Transport for London's Growth Fund, which is designed to target transport improvements in areas where there is potential to unlock new homes and jobs. It envisages how land across East London could be split up for commercial and industrial use and suggests where new schools, work space and hospitals could be located. ‘East London is already enjoying incredible growth and the City in the East plans reflect how we make the area an even better place to live and work over the next 20 years,’ said Johnson. ‘This blueprint reflects identified areas of land in London to build on and it will allow us to co-ordinate not only housing and commercial developments, but significant transport infrastructure to ensure this part of the capital can continue to flourish with hundreds of thousands of new jobs that will help the capital to remain the best big city in the world,’ he added. According to Alex Williams, director of borough planning at Transport for London, said that east London is expected to be one of the largest growth areas in the capital, with the population set to increase by 600,000 in the next 15 years. ‘Transport schemes such as the Overground extension to Barking Riverside and new river crossings will truly transform the area. London's transport network is vital to the economic and social wellbeing of this city… Continue reading
Cheaper to buy than rent in over a third of cities in the UK
It is cheaper to buy than rent in more than a third of cities in the UK with buying most effective in the north of the country, new research shows. Mortgage payments are less expensive than monthly rent in 36% of British cities and home owners in Glasgow are more than £100 per month better off than their renting counterparts. However, in the south renting still beats buying, with buyers in London, Reading and Cambridge forking out hundreds more to own property there, according to the research from property search firm Zoopla. But overall the analysis of the cost of renting a two bedroom home compared to servicing a mortgage shows that nationwide, renters still pay £58 less per month than buyers. Buyers did particularly well compared to their renting counterparts in Scotland and the North of England. In Glasgow, rental payments amount to an average of £596 per month, whereas monthly mortgage payments only totaled £447. This means Glaswegian buyers are paying 25% or £149 a month less to own property than rent it. The research also shows that in Hull, buyers who pay on average £397 a month are £55 better off than renters in the city who pay an average of £452 per month to rent. Conversely, the south eastern corner of the UK represents the best value for money for renters. The average London tenant pays rent of £2,218 per month, whereas the capital’s home owners pay an average of £3,302 on servicing their mortgages, meaning buyers there are paying 49% or £1,084 a month more than the city’s renters. Buyers in Reading and Cambridge can also expect to pay more. On average, owners in Reading typically pay £3,600 a year more than tenants, while servicing a mortgage in Cambridge costs £3,700 more a year on average. Nationwide, the current average asking rent for a two bedroom home is £666 per month, compared to an average asking price of £145,840. As a result, servicing a 90% LTV mortgage typically costs £58 more per month than the average tenant would pay for renting such a property. Aside from the initial deposit, and all the fees associated with the actual house purchase, the financial strain of buying can be overstated. In addition to the peace of mind that home buying brings, many owners enjoy more disposable income at the end of every month than their renting counterparts, said Lawrence Hall of Zoopla. ‘If they can make the leap, and are willing to relinquish the flexibility that comes with renting, tenants up north in particular would be much better off buying and paying off a mortgage every month,’ he explained. He pointed out that Scotland and the North of England are cementing their standing as international university hubs with top universities in York, Edinburgh and Durham. ‘This means increasingly high numbers of students are flock to these areas, all looking for places to stay and… Continue reading
UK mortgage sector competition to be examined
The UK’s financial watchdog has launched a consultation process on competition in the mortgage sector to seek input from interested parties to identify both good points and potential areas for improvement. ‘For millions of consumers a mortgage is one of the biggest, if not the biggest, financial transaction they will enter into in their lifetime. The mortgage sector also plays a vital role in the financial services industry and many areas of the economy,’ said Christopher Woolard, director of strategy and competition at the Financial Conduct Authority (FCA). He explained that competition can play a key role in ensuring that the sector works well, delivering consumer benefits through lower prices, better customer service, and more product choice. ‘We are seeking stakeholders’ views on competition in the mortgage sector. These views, together with evidence from the FCA’s wider programme of work on mortgages, will help inform any future FCA work on this key sector of the economy, including any future competition market study,’ he added. The FCA is interested in the range of factors that might affect competition in the provision of loans secured against a property, whether regulated or unregulated, including as a result of changes introduced following the Mortgage Market Review and any other barriers to entry, expansion or innovation. It also wants to examine consumers’ ability to effectively access, assess and act on information about mortgage products and services and firms’ conduct and relationships and the deadline for input is 18 December 2015 with feedback scheduled for the first quarter of 2016. The Council of Mortgage Lenders welcomed the announcement and described it is an excellent opportunity for the regulator to review the effect of regulation, as well as market practice, on lenders as well as their customers. ‘The FCA's role in promoting competitive markets is the part of regulation that best helps foster creativity, innovation and a sharp focus on what drives customers,’ said CML director general Paul Smee. ‘It's also essential in delivering the kind of environment in which reputable lenders of all shapes and sizes can thrive. We will be working with all our members to ensure that their perspectives are fully reflected as we work with the FCA on this vital issue,’ he added. Continue reading
