Tag Archives: stumbleupon
Planning reform Bill welcomed by UK building industry
Planning in the UK is to be reformed with local communities getting more power and control to shape where new homes will be built under the new Neighbourhood Planning and Infrastructure Bill. Announced in the annual Queen’s speech, which sets out what will happen in Parliament, the Bill also includes measures to reform and speed up the planning process by minimising delays caused by pre-commencement planning conditions. It has been widely welcomed by the industry. The British Property Federation said that strengthening neighbourhood planning is likely to be extremely effective for ensuring that development is brought about in a way that is supported by local communities and meets their needs. ‘The planning system is often cited as one of the main barriers to development, and pre-commencement planning conditions are an extra burden placed on developers which ultimately slows down the whole process,’ said Melanie Leech, BPF chief executive. However she said that it will depend on the detail yet to come, particularly how it is going to be enforced and how already stretched local authorities will cope. ‘Conditions for development should be agreed as part of the pre-application process, and we would hope that the planning process is not made over-complicated to compensate,’ she added. The compulsory purchase order (CPO) process is set to become clearer, fairer and faster for all those involved and the Bill will see the establishment of and independent National Infrastructure Commission on a statutory basis. On a more controversial points it includes the privatisation of Land Registry. Some believe this will support the delivery of a modern, digitally based land registration service that will benefit the Land Registry’s customers, such as people buying or selling their home. The Government is still consulting on the privatisation of the Land Registry, but its inclusion in the Bill implies that it is going ahead. Leech pointed out that the privatisation of the Land Registry could hold important consequences for the commercial property industry, as security of title is critical to the real estate market. ‘It is hugely important that any changes to the way that the Land Registry is run do not affect this security so that investors can be confident that they own their assets and that if for whatever reason there has been an error in registering their title then they will receive adequate compensation,’ she said. However, the Conveyancing Association (CA), the leading trade body for the conveyancing industry, is against the privatisation. It believes the move would not be in the best interests of clients, the conveyancing profession or the Land Registry itself, based on a number of reasons including its experience of previous privatisations. The Government has argued that privatisation would maximise capital return while maintaining high levels of quality and service, and reducing the burden of control but the CA suggests that such ambitions would not require privatisation. Instead it argues for a potential increase in fees, plus a reversal of the recent halving of… Continue reading
Prime properties in UK towns and cities outperforming the countryside
Prime properties in the UK in urban locations are outperforming their rural counterparts across the country, according to new research. A growing trend of living in thriving town and cities other than London since the economic downturn of 2007 is behind the increase, says the new analysis from real estate firm Knight Frank. Across all the prime regional markets, urban properties are now on average 4.1% above their 2007 peak. This has been particularly evident in prime towns and cities including Bath, Oxford, Winchester and Cheltenham. The report also explains that demand is strong in these locations, in part due to the high concentration of prime housing stock and good schools which make them attractive to families looking to upsize, but also thanks to a growing number of equity rich downsizers looking to move to areas where they can have access to a range of good restaurants, shops and amenities. ‘An important consideration for such buyers, however, is just how much extra it costs to move to a property with more bedrooms, or how much equity can be released by downsizing, especially given the fact that in some regional cities the price per square foot can be similar to some London boroughs,’ said senior analysis Oliver Knight. Looking at the latest average house price trends across the country, the firm’s research team has calculated that the cost of adding or removing a bedroom is around £52,000 on average across England and Wales. This figure does not take into account the added costs associated with buying a property, including stamp duty. The regional nature of the market means that in terms of costs and savings there are large variations depending on where households are based and where they are moving to, as well as the type of properties involved. ‘We also acknowledge that the size and amenities of homes with more bedrooms will generally differ from those with fewer bedrooms, and this too will be reflected in the price. For example, downsizing from a five bed detached house to a three bed terrace in the South East could release around £263,000 in equity, based on average property prices, while downsizing from a four bed to a three bed property in the West Midlands could release £45,000 in equity,’ Knight explained. ‘There are also notable differences in terms of property type. Moving from a three bed terraced house to a four bed terraced property in Yorkshire costs, on average, £38,000. Making that same move from a detached property to another detached property costs closer to £50,000,’ he added. The research also found that costs are greatest in markets on the outskirts of London such as Elmbridge, St Albans and Guildford, perhaps unsurprisingly given average property prices tend to be higher in such locations. ‘These markets have also been among the first to reap the benefits of the ripple effect of demand coming out of London. As regional economies continue to recover, more London buyers are expected… Continue reading
March saw unprecedented lending levels in UK due to buy to let rush
Home owner house purchase lending was up by 60% year on year in the UK in March but the overall lending figures were affected by a rush from buy to let buyers seeking to beat a new stamp duty surcharge. Overall on an unadjusted basis, home owners borrowed £13.8 billion and first time buyers borrowed £4.5 billion, up 32% on February and 29% on March last year, according to the latest figures from the Council of Mortgage Lenders. Home movers borrowed £9.3 billion, up 75% on February and 82% compared to a year ago while remortgage activity totalled £4.7 billion, down 2% on February but up 7% compared to a year ago. Landlords borrowed £7.1 billion, up 87% month on month and 163% year on year but CML director general Paul Smee pointed out that activity was distorted in March due to a rush to beat the introduction of changes to stamp duty on second properties in April, alongside the seasonal uptick in activity before Easter. ‘While the increases are substantial, these supercharged levels of activity are likely to be temporary and will fall back over the summer months,’ he added. Peter Williams, executive director of the Intermediary Mortgage Lenders Association (IMLA), suggested that while activity has picked up among home movers, the leap in landlord lending makes it clear that price inflation has been fuelled by the Government’s stamp duty changes for buy to let properties and second homes, incentivising many buyers to bring their purchases forward where possible. ‘A policy move that aims to manage long term demand has therefore created short term tremors in the market and made it hard to predict how things will look when the dust settles. The Government’s hope is that first time buyers will find their prospects improved and lenders are certainly doing their bit with first time buyer lending up 29% year on year,’ he explained. ‘Continuing access to high loan to value (LTV) mortgages is an important part of this equation, and should not be frowned upon given the rigorous affordability checks in place,’ he pointed out. ‘Nevertheless, the UK needs a balanced housing market to prosper and playing politics across tenures cannot compensate for the underlying short supply of property. Added uncertainty from the upcoming EU referendum vote means the market is in urgent need of time and space to draw breath. Now is not the time to consider further tinkering under the bonnet after a rollercoaster start to the year,’ he added. According to David Whittaker, managing director of Mortgages for Business, it wasn’t just March which was exceptional. ‘The first quarter as a whole was strong as landlords reacted to tax changes. The dust will begin to settle in this part of the mortgage market through the second quarter of the year,’ he said. ‘Landlords have a new status quo and it’s not just the additional stamp duty that needs to be factored into… Continue reading
