Tag Archives: real estate
Research reveals knowledge about self building land register is lacking in UK
One in five people in the UK believe there would be increased public support for the building of new homes if self or custom build properties contributed to a greater proportion of those built, new research shows. Despite the Self Build and Custom Housebuilding Act (also known as the Right to Build Act) coming into force on 01 April 2016, some 77% of people in the UK are unaware councils are now required to keep a register of those looking to buy land in the local area to carry out self or custom build projects. The registers will work alongside measures due to come into force in the upcoming Housing and Planning Bill, which will require authorities to ensure they have sufficient permissioned plots to match the local demand on their register. However, the research from the National Custom and Self Build Association (NaCSBA) and Ipswich Building Society found that one in eight expect to show an interest in self build property within the next year. This figure has remained constant since the annual survey was launched in 2013. However, just 2% of people stated their intention to take specific actions to progress their self build projects, such as purchasing land, submitting a planning application or starting construction, within the next 12 months. ‘At a time when much of the UK is experiencing a housing shortage, more needs to be done to raise awareness of this new legislation and encourage those looking for a new home to consider undertaking self and custom build projects,’ said Paul Winter, chief executive officer of Ipswich Building Society. ‘Due to the complex nature of a self build project, those seeking these specialist mortgages are advised to research the market and seek out a provider, and product, that best suits their individual needs and circumstances,’ he added. According to NaCSBA chairman Michael Holmes the success of the Right to Build Policy initiative, and the delivery of land to meet the huge pent up demand, depends on the registers yet he pointed out that the research shows that 77% of people aren't aware of the registers, nor what their success means to creating better new homes. ‘This figure needs to change. The NaCSBA is working hard to raise the public profile and support councils across the country to ensure that they have the correct measures in place. Currently, only 35% of LPAs have adopted a register and our aim is to get this to 100%,’ he said. Raymond Connor, chief executive of BuildStore, believes that this will change as more people become aware that finding a suitable plot of land has become simpler. ‘The research shows there is a significant gap between those interested in self build and those who intend to take specific action to progress self build projects. However, it is likely this sector will soon grow once more people are aware the main challenge of finding a suitable plot of land has now been simplified,’ he explained. Continue reading
Initial planning permission for new homes in England rise steeply
Initial planning permission for 255,032 new homes was granted in England in 2015, up 57% from a low point of 162,204 in 2009, according to the latest pipeline report. Permissions granted in the fourth quarter of 2015 were up 13% on the same quarter in 2014, to 74,759, as developers submitted more applications to ensure they can continue to deliver further increases in supply. The report from the Home Builders Federation (HBF) and Glenigan also shows that permissions have risen steadily every year since 2009, with actual housing supply also increasingly markedly over the past two years as more of the permissions are progressed to the point that infrastructure work can start and house builders can begin building new dwellings Over 180,000 new homes were added to the housing stock in 2014/2015, up 22% on the previous year as house builders increased output in response to the rise in demand for new homes. However, many of the permissions counted in the report still have many hurdles to cross, the report points out as builders and developers navigate the complexities of the planning system before actual building work can get underway, for example discharging planning conditions. The industry continues to urge Government to streamline the planning process and ensure local authorities have the capacity to deal with the volume of applications now being processed so builders can get on to more sites more quickly. The figures though are a strong indicator of future supply, and suggest that housing completions will continue to rise as these permissions are turned into implementable permission and are the sites built out over the coming years. ‘The number of planning applications now being submitted demonstrates the commitment of the industry to deliver further increases in housing supply,’ said Stewart Baseley, executive chairman of the HBF. ‘The past two years have seen huge increases in house building levels. Whilst the increase in the number of permissions is welcome, and a strong indicator of future supply, many still have to navigate the complexities of the planning system,’ he explained. ‘This is a further sign that house builders continue to step up investment in future housing supply but we need to see these permissions being processed to the stage where we can get onto site and start building more quickly and really start to meet demand for housing,’ he added. According to Allan Wilén, economics director and head of business market intelligence at Glenigan, the strong rise in planning approvals during the closing months of 2015 was driven by an increase in the number of private housing units approved, bodes well for house building activity during the current year. ‘The expanded development pipeline will help housebuilders to meet any strengthening in demand from house buyers. Furthermore the rise marked rise in approvals in the Midlands and North of England last year demonstrates that the recovery in housing market activity is becoming more established across the country,’ he added. Proposals announced earlier this year by the… Continue reading
Residential rental stock falls in UK
The supply of rental housing stock on letting agents’ books in the UK fell in March, to the lowest level since the start of last year, the latest data shows. Demand also dropped in March, according to the March private rental sector report from the Association of Residential Letting Agents (ARLA). ARLA agents had 33 prospective tenants registered per branch on average, down 11% from 37 in February. This stands below the figure recorded in March last year when agents registered 36 on average. Supply has also fallen year on year. In March 2015, the average number of properties managed per branch was 192, which is down 12 per cent this year with just 169 rental properties managed per branch, the lowest level since records began in January 2015. It’s a brighter picture in Scotland, where agents had on average 273 properties on their books, and Yorkshire and Humberside, where 207 properties were recorded on average per branch. In London however, agents had just 122 properties on their books per branch. In March 65% of ARLA agents predicted that current and prospective buy to let landlords will walk away from the market following the April stamp duty changes, causing a decrease in the supply of rental properties. Rent costs rose in March for 32% of tenants and 61% of ARLA members fear they will increase further as a result of the changes, a growing sentiment since last month when 57% of agents agreed on this. ‘We don’t expect falling supply to stop here. The recent stamp duty changes are very likely to cause supply to decrease even further, as landlords withdraw from the market,’ said David Cox, ARLA managing director. ‘Not only do our agents predict that rent costs will increase further, but rental homes may also face a decline in quality over time, as landlords struggle to keep up with maintenance costs alongside the higher stamp duty charge,’ he explained. ‘Whilst landlords adjust to the increase in costs we can expect to see one of three outcomes prevailing in the buy to let market: landlords absorbing the cost and taking the hit; landlords withdrawing from the market causing supply to fall; or landlords regaining those costs through hiking rents. Next month we can start to assess the damage,’ he added. Continue reading
