Posts with tag: homes to rent

Call for extra funding for building additional homes to rent

Published On: July 27, 2016 at 8:56 am

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The new UK housing minister Gavin Barwell has been urged by property peers to pledge his support to funding for building of new homes to rent. Observers feel that this can be achieved by relaxing the rules around public funding in the sector.

This appeal has been driven in response to a report published this week by the Centre for Economic and Business Research. Commissioned by the National Housing Federation, the report suggests that the UK economy could contract by £145 million during the next decade, should the rate of new housing completions drop at the levels seen in 2008.

Austerity

Figures from both the National Housing Federation and the Chartered Institute of Housing believe that more homes for rent would keep both housebuilding and the economy buoyant in times of austerity.

The National Housing Federation has predicted that 300,000 units could be built by housing associations by the year 2020, if funding is made available.

These calls from sector bodies is likely to be welcomed by would-be tenants, with demand continuing to massively outstrip supply.

Budgeting

A reallocation of the central budget to ultimately allow housing associations to build more rental homes would negate the effects of a slowdown in the housebuilding sector, according to James Howard, partner in Clarke Willmott LLP’s social housing development scheme.

Howard said, ‘a change in funding strategy to switch the balance to building more for rent than for sale should allow for a supply of new homes to continue despite the gap private sector housebuilders might leave behind.’[1]

Jonathan Hulley, Clarke Willmott’s head of housing and asset management, believes the Government’s Starter Homes scheme could undermine sales of more affordable shared ownership properties.

Hulley noted, ‘the social housing sector argues that housebuilding is needed now more than ever. People are in need, waiting lists are still growing, so the policy of building more homes for sale only needs to be revised and adapted to allow for the building of more homes for rent.’[1]

Call for extra funding for building additional homes to rent

Call for extra funding for building additional homes to rent

Lack of capacity

Mr Hulley went on to say, ‘there is also worrying lack of capacity on the ground to deliver which needs to be addressed and a question mark over what appetite there is for outright purchase of house on large scale.’

‘On the other hand the kind of shared ownership offered by housing associations puts homes within the reach of the many people who would otherwise be unable to afford them. It’s high time for a change in Government policy to support greater flexibility to deliver not just on homes for sale, but also allowing more to be built to rent,’ he concluded.[1]

[1] http://www.propertywire.com/news/europe/uk-new-homes-rent-2016072712189.html

New Housing Minister Urged to Build More Homes to Rent

Published On: July 22, 2016 at 11:26 am

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The new Housing Minister, Gavin Barwell, is having a busy first week in his new post.

Earlier in the week, the newly appointed minister was questioned over his commitment to building one million new homes, saying that homes will only be built on greenbelt land in “special circumstances”.

Now, he is being urged by industry experts to support the building of more new homes to rent by relaxing the rules around public funding in the sector.

New Housing Minister Urged to Build More Homes to Rent

New Housing Minister Urged to Build More Homes to Rent

The appeal has been launched following an independent report, published this week by the Centre for Economic and Business Research and commissioned by the National Housing Federation (NHF), which predicts that the UK economy could shrink by £145m in the next ten years if the rate of growth in new housing completions falls at the same rate as it did in 2008.

Spokespeople for the NHF and the Chartered Institute of Housing (CIH) argue that building more homes to rent or for shared purchase would help keep housebuilding and the economy steady during a time of economic austerity.

The NHF believes that up to 300,000 units could be built by housing associations by 2020 if funding is made available – even in times of economic uncertainty.

CIH data shows that during the last recession, the number of homes built by non-profit housing associations rose by 22% between 2007-09, while private development dropped by 37%.

The call from the industry bodies for the Government to redirect some of the current funding to allow construction of new housing association homes to rent is likely to be welcomed by would-be tenants, as demand currently outstrips supply.

Reallocation of the central budget to allow housing associations to build more rental properties would also alleviate the negative impact of a general slowdown in the housebuilding sector, which is a widely anticipated result of the Brexit, according to James Howard, a partner in Clarke Willmott LLP’s social housing development team.

He believes: “A change in funding strategy to switch the balance to building more for rent than for sale should allow for a supply of new homes to continue, despite the gap private sector housebuilders might leave behind.”

Clarke Willmott’s Head of Housing and Asset Management, Jonathan Hulley, adds: “The Government’s flagship Starter Homes scheme would lead to the undermining of sales of more affordable shared-ownership properties and fails to address the urgent need for more affordable homes to rent. The social housing sector argues that housebuilding is needed now more than ever – people are in need, waiting lists are still growing – so the policy of building more homes for sale only needs to be revised and adapted to allow for the building of more homes for rent.

“There is also a worrying lack of capacity on the ground to deliver, which needs to be addressed, and a question-mark over what appetite there is for outright purchase of houses on a large scale. On the other hand, the kind of shared-ownership offered by housing associations puts homes within the reach of the many people who would otherwise be unable to afford them.”

He concludes: “It’s high time for a change in Government policy to support greater flexibility to deliver not just on homes for sale, but also allowing more to be built to rent.”

OnTheMarket Reports Another Record-Breaking Month

OnTheMarket Reports Another Record-Breaking Month

OnTheMarket Reports Another Record-Breaking Month

OnTheMarket has reported that traffic on its website rose again in September, making it another record-breaking month.

During September, the site achieved 5.6m visits, compared with 5.4m in August.

This activity included over 2.7m unique visitors, up from 2.5m in August.

Last month was also a record month for the amount of leads to agents, according to the portal.

Chief Executive of OnTheMarket, Ian Springett, comments: “We are delighted to see such a significant increase in our traffic yet again.

“Consumers are increasingly becoming aware of our new and exclusive properties, which are uploaded to OnTheMarket 24 hours or more ahead of any other portal and they know that to get ahead of the game, they should search there.

“Alongside our strong uptake in traffic, support among estate and letting agents for OnTheMarket to succeed continues to increase daily.”

He adds: “We believe it is only a matter of time before we overtake Zoopla as the number two portal in terms of available UK property listings, and provide agents and consumers alike with a credible alternative to the current duopoly of Rightmove and Zoopla.”1

The portal uses Google Analytics to measure its traffic.

1 http://www.propertyindustryeye.com/another-record-breaking-month-for-us-says-onthemarket/