Tag Archives: house
BSA calls for more financial help for young UK home buyers
The UK’s annual Budget will be unveiled next week but ahead of the announcement the Building Societies Association has written to the Chancellor of the Exchequer asking for urgent help for buyers. The BSA says that younger buyers in particular need concerted help to buy their first home and has suggested a way in which money could be raised to give it to them. The money raised by the government from the sale of the NS&I 65+ Pensioner Bonds, estimated to reach £15 billion by the current closure date of 15 May, could be used to offset an initial investment in affordable housing projects, the letters says. Specifically, the BSA letter says that this money could make a lasting difference if it was used as seed funding for perpetually affordable housing developments using a model such as a Community Land Trust. ‘Using the money raised from the Pensioner Bonds to make affordable housing available to young people seems a neat way for a scheme that benefits those 65 and over, to also help younger people who face such a chronic shortage of affordable housing,’ said Robin Fieth, BSA chief executive. The letter also calls for the government to boost the range of providers within the house building sector, including specific support for small to medium size builders, custom and self build builders and co-operative and shared housing models. ‘The UK’s volume house builders alone cannot alleviate the acute shortage of housing in the country,’ it adds. Next week, two days before the Budget, the BSA will launch its housing manifesto for the forthcoming general election which will include a call for the creation of a new housing ministry with a Secretary of State with a seat in the Cabinet. It says this would be better than the current situation when housing is spread among a variety of government departments. The BSA is also backing the idea of a cross political party 15 year plan for the UK’s housing market based on national and regional long term demographic changes, employment, environmental concerns and infrastructure. Continue reading
Flagship Help to Buy taken up by almost 90,000 UK buyers
Help to Buy, the UK government’s flagship housing scheme, has helped almost 90,000 people to buy a new home since it was created in 2013, the latest official figures show. Overall, since the launch of the Help to Buy equity loan and mortgage guarantee schemes, some 80% of scheme completions have been made by first time buyers and the average house price was £185,000, significantly below the national average. Some 88,420 people have bought a new home and 94% of Help to Buy completions took place outside of London while over half of Help to Buy completions have been for new build homes. Together with the government’s Help to Buy: New Buy scheme, which offers 95% mortgages for those buying new build properties, the scheme is ensuring the long term health of the housing market by increasing housing supply, stimulating home building. Over half of the homes bought through Help to Buy are new build properties, helping to contribute to the 37% rise in private house building since the launch of Help to Buy. With almost all completions outside London, the highest number of homes have been through the mortgage guarantee scheme in the North West region. The equity loan, the scheme for new build properties, is particularly high in the South East region. Figures for the mortgage guarantee scheme also show completions have been least concentrated in regions where house price growth is highest. In London the scheme makes up just 1.3 % of all mortgage lending compared to an average of 3% across the country. ‘Thanks to Help to Buy, this government has helped thousands of hard working people that otherwise would have been locked out of home ownership get the keys to their own home and enjoy the security that comes with it,’ said Prime Minister David Cameron. According to Home Builders Federation executive chairman, Stewart Baseley, Help to Buy has helped tens of thousands of people onto the housing ladder who otherwise would have struggled to meet their ambition of home ownership. ‘First time buyers in particular are taking advantage and the scheme is helping people in every part of the country. The resultant rise in demand is allowing builders to increase much needed house building levels. This is turn is creating tens of thousands of jobs and boosting local economies the length and breadth of the country,’ he added. Communities Secretary Eric Pickles believes that Help to Buy and the recently announced new Starter Homes initiative offering a 20% discount on newly built homes for first time buyers, will continue to offer a strong alternative to the Bank of Mum and Dad. Continue reading
UK govt plans could prevent selective landlord licensing by councils
Councils in the UK could be prevented from introducing selective licensing for private sector landlords unless there are specific reasons for doing so. The Department of Local Government and Communities believes that for an area to be designated as subject to selective licensing it must contain a high proportion of properties in the private rented sector, in relation to the total housing accommodation in that area. It has announced proposals that would mean that if an area has one or more of four specific conditions, the authority may consider introducing licensing. These include hazards caused by poor housing conditions, an influx of migration and if the area is suffering from a high level of deprivation which affects a significant number of the occupiers of properties. In addition it can be granted if the area suffers from high levels of crime. If the local authority and the local police together say that licensing may contribute to controlling or reducing crime, a licensing system could be considered. The National Landlords Association (NLA) has welcomed the proposals at a time when there is unease about a number of councils introducing their own licensing schemes without providing evidence that they are needed. An example is Liverpool City council which requires landlords to pay upwards of £400, from next month for a five year licence. Applicants will be checked to see if they are ‘a fit and proper person’ to be a landlord. Landlords will also have to meet health and safety guidelines and be seen to be keeping the exterior in a good state of repair and dealing with complaints about anti-social behaviour caused by tenants. Those without a licence could be fined up to £5,000 and see their properties taken over by the council until an alternative licensed landlord is found. But the NLA believes this is heavy handed. ‘The change in the legislation is welcome as it stops local councils introducing unnecessary borough wide licensing schemes, without an evidence base,’ said NLA chief executive officer Richard Lambert. ‘Instead it pushes councils towards resolving specific issues in targeted local areas by outlining the key criteria by which schemes should be implemented and judged. We hope to see this progress before the dissolution of parliament later this month,’ he added. The borough of Redbridge in London has issued proposals to introduce a £500 five year licence for private landlords. It says it will improve the standard of living by providing tenants with the same living conditions as other households and help to maintain a landlord’s register, making it easier to notify landlords and letting agents of their responsibilities, improve their reputation, provide support, reduce anti-social behaviour and fly tipping, and build an area that would be safer and more appealing to live in. In Hastings landlords are challenging plans by the council to introduce a £400 licence and say that there is little evidence that such a scheme is needed. Last December a landlord in Enfield successfully challenged the local… Continue reading
