Written By Em

Em

Em Morley

Fewer homes being built on Greenbelt land

Published On: September 17, 2015 at 3:04 pm

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The total number of new homes being constructed on greenbelt land in England has halved over the last ten years, according to new research.

A report from real estate firm Countrywide shows that less than 100,000 homes have been built on these open spaces, which are intended to prevent an urban migration to the countryside.

Findings

Data from the report shows that the 96,000 greenbelt land properties built during the last decade made up just 3.5% of the 2.7million homes built in England.

Demand for new homes, particularly around the capital, has seen 48% of all greenbelt development occur around London since 2014. Four areas, namely Blackpool, Gloucester, Burton and Morecambe have seen no new house building activity at all since 2011.[1]

In fact, figures show that the number of new homes being constructed on greenbelt land each year has dropped dramatically over the last few years, from 6,700 homes in 2001 to 3,248 in 2014.[1]

This trend was found to have started long before the economic downturn. Despite a 36% increase in the number of new homes being built in England between 2001 and 2007, the percentage being built of greenbelt land dropped by 46%. In fact during the last year, only 3,250 homes, or 3% of all homes in total, were built on the greenbelt.[1]

During the last five years, development on greenbelt land has been predominantly in areas surrounding up-and-coming cities in the south of the country.

Permission

Local authorities have the power to grant permission for development in the greenbelt under special circumstances, where the benefit from the development is determined to outweigh the harmful aspects.

This has opened up a number of debates and conflicting reports on what specifically counts as benefits. Broadly, these may include substantial economic benefits, replacing buildings or providing social housing.

‘While development is generally prohibited within the greenbelt a small number of homes are given permission to be built,’ said Johnny Morris, group research director at Countrywide. ‘Many of these development sites would be at odds with common perceptions of greenbelt. Rather than picturesque countryside being concreted over these sites were either brownfield, infill schemes or unused land with little amenity value,’ he continued.[1] 

Fewer homes being built on Greenbelt land

Fewer homes being built on Greenbelt land

Pressure

Morris believes that, ‘sustained pressure, particularly in the South, to get more homes built and government plans to take a tougher line on local authorities with out of date plans, will likely see more homes built on greenbelt in future years.’ He explained that, ‘just returning to the rates of development on greenbelt seen in the early noughties would yield an extra 5,000 new homes a year.’[1]

‘Research by Countrywide published earlier in 2015 showed around the 80 railway stations in the greenbelt on the fringes of cities across England, there is enough unused land in areas within walking distance of those train stations to accommodate nearly half a million new homes. Given the chronic shortage of new homes in certain areas, we concluded we may not have the luxury of overlooking these potential sites,’ he added.[1]

[1] http://www.propertywire.com/news/europe/england-greenbelt-home-development-2015091710993.html

 

London Council Becomes Private Landlord

Published On: September 17, 2015 at 2:58 pm

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A London council is taking matters into its own hands in tackling the capital’s housing shortage, by buying a block of flats that it will rent out to private tenants at below market rates.

It is thought to be the first initiative of its kind in the country, brought by the East London council of Barking and Dagenham. The council bought 100% of a private development from construction firm Bouygues and will put 144 new homes onto the market for renters in October.

The development includes social housing, but local councillors decided to try and address the wider housing shortage, which has been described as the worst in 30 years.

Prospective tenants earning under £66,000 per year are eligible for a one or two-bedroom property, while those seeking a three or four-bed home must earn less than £80,000.

A council spokesperson says: “It is an innovative way of trying to do something for generation rent.”

London Council Becomes Private Landlord

London Council Becomes Private Landlord

They deny any social cleansing or attempts to attract more middle class renters to the borough, which is mostly occupied by council tenants.

The spokesperson explains: “It is about aspirational workers, it is certainly not gentrification. It’s about young professionals who need a decent home but can’t afford the market rents which have rocketed in London.”1

Already, 1,000 people have shown interest in the 144 homes, reports Hakeem Osinaike, the Divisional Director of Housing Management at the council.

Barking and Dagenham council members hope that other London councils follow suit.

Previously, councils have tried to tackle the housing shortage by paying private landlords to take council tenants, but this is the first instance where a council has become a private landlord itself.

The purchase of the Abbey Road block cost the council £45m, which was funded through a £130m credit facility, secured from the European Investment Bank at below market interest rates.

It has formed an independent company, Barking and Dagenham Reside, which will market and manage the flats on the council’s behalf.

The properties will be rented out at 80% of the market rent, still making a profit for the council, which will go back into more housing.

Two-bed flats will be priced at £940 per month, almost half of the cost in neighbouring boroughs, such as Hackney, where the median rent for a two-bed property is £1,700.

Divisional Director of Regeneration at Barking and Dagenham council, Jeremy Grind, says: “This isn’t just about housing key workers, such as teachers and nurses, it’s about housing the baristas, waiters and waitresses – people who can’t afford to get on the housing ladder or get access to a council home.”1

Councillor Saima Ashraf adds: “It’s a win-win for our council, taxpayers, residents and generation rent.”1 

The council hopes to add 1,000 flats to its private rental scheme over the next three years.

Councillor Cameron Geddes explains the need for the scheme: “We came up with the idea for Barking and Dagenham Reside because we needed to think of a creative way to build new housing in the middle of an economic downturn.”1

The Conservative housing spokesperson on the Greater London Assembly, Andrew Boff, said the scheme is one of the most innovative in the country, regarding council financing and housing.

He said the development is “fantastic” and could be part of a solution to the chronic shortage of housing in Britain.1 

1 http://www.theguardian.com/money/2015/sep/16/london-council-sets-up-as-private-landlord

Just Two Weeks to Fit Smoke Alarms in Rental Properties

Published On: September 17, 2015 at 1:54 pm

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The Smoke and Carbon Monoxide Alarm (England) Regulations have finally been passed in Parliament.

Landlords and letting agents now have until 1st October to fit a working smoke alarm to each storey of a rental property and carbon monoxide alarms to all rooms with solid fuel appliances.

The Association of Residential Letting Agents (ARLA) warns that it is “simply impracticable” for agents that manage large portfolios to comply in the timeframe.

Just Two Weeks to Fit Smoke Alarms in Rental Properties

Just Two Weeks to Fit Smoke Alarms in Rental Properties

Last week, the House of Lords refused to approve the regulations, questioning whether they should be enforced in their current form and when.

Peers claimed that the regulations had not been publicised enough and that they were badly drafted.

However, the House of Lords has now accepted the regulations and the House of Commons also approves.

The Managing Director of ARLA, David Cox, has criticised the tight timeframe.

He says: “Whilst ARLA is entirely supportive of the aims of the regulations, we remain concerned that the Government has ignored calls from across the private rented sector to reconsider the timeframe for its implementation.

“Whilst these measures are entirely sensible, ARLA is concerned that landlords will not have enough time to comply with the requirements, as it is simply impracticable for letting agents, who may manage a huge amounts of properties, to gain access to the properties and to install these alarms on behalf of their clients in the timeframe allotted.”

Cox continues: “On behalf of its members, ARLA has written to the Government on this issue to raise its concerns and suggested that all existing tenancies should be allowed to have until January 1st to comply.

“We were encouraged to see that Lord Marlesford showed support for our proposals in Parliament and again put our suggestion to the Government.

“However, despite our efforts it appears that the Government will now go ahead and implement the new requirements as planned.”

He advises: “We urge our members to ensure that they do all they can to ensure that their properties comply with the new regulations before the measures come into effect.”1 

1 http://www.propertyindustryeye.com/a-race-against-time-just-two-weeks-to-fit-smoke-alarms-in-all-rental-properties/

RLA Urges Housing Minister to Delay New Section 21 Rules

Published On: September 17, 2015 at 12:57 pm

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It is just two weeks until the new section 21 rules are due to be enforced, but the Residential Landlords Association (RLA) has urged the housing minister to delay implementation.

It has warned Brandon Lewis that there is a “major drafting error” in the new prescribed section 21 notice.

Lawyer Giles Peaker has also identified this “significant error” in his Nearly Legal blog.

Furthermore, he has criticised the “last minute approval of the regulations”, claiming that there is potential for “lots to go wrong”.

The new section 21 form is due to be legally binding from 1st October, part of the Deregulation Act.

RLA Urges Housing Minister to Delay New Section 21 Rules

RLA Urges Housing Minister to Delay New Section 21 Rules

However, the new form contradicts the Act.

The current draft of the form states that where a fixed-term tenancy ends and then turns into a rolling or periodic tenancy, the section 21 notice will only be valid for four months from the date that it is served to the tenant.

However, the Act says that the required period to regain possession of a property where a tenancy is rolling or periodic, should instead be four months from the date the section 21 notice expires.

Despite the RLA engaging with the Government throughout its plans, the final version of the standard form has not been shown to the body.

The RLA warns that the drafting exposes landlords to legal difficulties and is calling for the enforcement to be delayed, giving more time for them to correct the issues.

Policy Director at the RLA, David Smith, says: “The RLA continues to share the Government’s ambitions to ensure that all landlords understand and properly implement their legal responsibilities and obligations.

“In light of the major changes being introduced for the sector, it is vital that all documents published by the Government are clearly understood. This drafting error will serve only to dent the confidence of landlords in the legislation.

“Whilst ministers are understandably eager not to let these new measures drift, it would make more sense not to rush their implementation than face the potential legal difficulties that will now arise for landlords.”1

Peaker’s blog says that there are complications around the requirement for landlords or letting agents to give new tenants the Government guide, How to Rent.

If the booklet is not provided, then a section 21 notice cannot be served.

Additionally, Peaker says the obligation to provide Energy Performance Certificates (EPCs) and gas safety certificates before the tenant moves in, “will no doubt trip up quite a few landlords and agents”.

Read the blog here: http://nearlylegal.co.uk/2015/09/1-october-2015-section-21-day/

1 http://www.propertyindustryeye.com/more-chaos-as-housing-minster-told-to-delay-new-section-21-because-of-error/

Tenancy agreements ‘worthless’ to many

Published On: September 17, 2015 at 12:32 pm

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A damning new investigation suggests that signed tenancy agreements are hardly worth the effort and paper they are written on.

The study, conducted by PropertyLetBuyUs.com, indicates that many tenants have simply ignored terms and conditions set out in the agreement and are failing to gain permission to make changes to a property and lease.

Lack of respect

Findings from the report show one in ten tenants has subletted a property to a friend, with over 70% have kept a pet without permission. 79% said that they have decorated without consent.[1]

In addition, the research shows that despite landlords outlining clearly that no alterations are to be made to their property without permission, almost half of tenants asked put up shelves and other fixings. A whopping 95% said they had put nails and screws in the walls.[1]

A further 11% said they had made unconsented alterations to the garden, 6% said they had installed decking and 60% have had internet or Sky cables installed into the property.[1]

Tenancy agreements 'worthless' to many

Tenancy agreements ‘worthless’ to many

Disregard

‘It is a sad fact that many tenants don’t take any notice of the lease agreement and treat the property as if it belongs to them, with little disregard for the landlords investment,’ said Jane Morris, Managing Director of Property Let By Us. ‘Landlords often face filthy and damaged properties with excessive wear and tear at check-out. What’s more, the deposit does not always cover the costs involved in getting the property up to standard for re-letting,’ she continued.[1]

Morris believes that it is, ‘vital that landlords make mid-term inspections, so that they can monitor and assess the condition of the property.’ She says that this way, ‘any issues and problems can be discussed with tenants and resulting increases in rent or deposit can be agreed to cover additional wear and tear, or any damage to the property.’[1]

[1] http://www.propertyreporter.co.uk/landlords/are-tenancy-agreements-worth-the-paper-theyre-written-on.html

 

 

American Real Estate Agent Ready to Launch in UK

Published On: September 17, 2015 at 11:55 am

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A giant American real estate agency franchise is set to launch in the UK.

Coldwell Banker Real Estate and a new firm, GBRE Ltd, based in London, have signed a master franchise contract.

GBRE will operate Coldwell Banker Great Britain, to be headed by managing director Vic Pegna.

A fellow director of GBRE is Stuart White, the former UK master franchisee of another major American firm, Century 21.

American Real Estate Agent Ready to Launch in UK

American Real Estate Agent Ready to Launch in UK

The two directors are currently at a conference in Chicago, where they are being introduced to the Coldwell Banker global network and giving a presentation on the UK property market.

Initially, the new business will focus on London, but plans to expand further into England, Wales and Scotland.

Coldwell Banker Real Estate has a global network of 3,000 offices in 44 countries, with around 88,000 staff members.

It calls itself the oldest national real estate brand and franchise in the USA.

President and CEO of Coldwell Banker Real Estate, Budge Huskey, says: “There is no doubt that expansion into Great Britain was paramount to our continued international growth.

“The region reflects similarly to the US housing market with approximately 65% homeownership rate and an improving economy.

“London itself ranks as one of the world’s top financial centres and therefore is critically important for us.

“Vic and his management team, with almost 100 years of combined experience with operating real estate firms in Great Britain, are equipped to navigate the competitive landscape with a focus on growth.”1

Pegna was previously in mortgage departments at Your Move and Countrywide.

White was formerly the Century 21 franchisee in the UK, from 2005 to November 2013, and also used to work at Countrywide.

US real estate companies currently operating in the UK include Century 21, Re/Max, Sothebys Realty and Keller Williams, which launched in London last year.

Century 21 UK is now operated by financial and property firm Shepherd Direct Group.

1 http://www.propertyindustryeye.com/american-giant-realtor-gets-set-to-launch-in-uk/