Posts with tag: housing crisis

Average House Price Rose 1.4% in May

Published On: June 30, 2015 at 9:34 am

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The average property price in the UK rose 5.6% annually and 1.4% monthly in May, making the average house price £212,495, revealed the latest data from haart estate agents.

In London, the market is gaining momentum again after uncertainty surrounding the general election. Prices are up 16.7% year-on-year and 3.4% on a monthly basis, to an average of £536,286.

Average House Price Rose 1.4% in May

Average House Price Rose 1.4% in May

The capital has also experienced an upsurge in sales, recording the highest monthly rise since August 2014. The monthly data report from haart also found that in May, there were 11 potential buyers for every available property around the country. In London, this is 20 per home.

These figures indicate a slight fall in activity both annually and monthly. However, it is clear that the market is still busy and consumer confidence is high.

Overall research from haart reveals a steady increase in house prices since November 2014, which has been fuelled by high levels of demand and low supply.

The average first time buyer property price is also on the up, rising 4.3% annually and 1.7% month-on-month. The amount of new buyers registering has risen slightly, up by 0.3% since April.

However, on an annual basis, the number of new buyer registrations is down 12.7%. The estate agent says that this was expected after particularly high levels of buyer activity in 2014. First time buyer registrations also dropped during the same period.

The amount of new properties coming onto the market has grown by 2.6% monthly and haart says that this indicates that vendors are confident in putting their house up for sale.

The average loan granted to a first time buyer has risen 4.2% yearly to just under £130,000. This reflects high institutional confidence in lending.

haart’s data also revealed that North London is the most expensive postcode area, with prices up 36% annually to an average of £667,944. The North West is the only area of the capital where the average home is still under £400,000.

CEO of haart, Paul Smith, says that will all the current market optimism and low mortgage rates, more people will aspire to buying. However, due to the lack of supply, property will become more unaffordable for many.

He continues: “First time buyer activity in London is down significantly, with 30% fewer first time buyer registrations in May 2015 compared to May 2014. The result will be that young professionals are driven from key areas, as they can’t afford to live there.

“This is bad news for local economies and the UK as a whole, and we need at least 200,000 homes built every year across the next Parliament to keep the housing supply crisis under control.”1 

1 http://www.propertywire.com/news/europe/uk-national-house-prices-2015062910682.html

Property Prices Still Below Pre-Downturn High

Published On: June 29, 2015 at 1:58 pm

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Property Prices Still Below Pre-Downturn High

Property Prices Still Below Pre-Downturn High

The average property price in England and Wales is still below the pre-downturn high recorded in November 2007, according to the Land Registry.

It reveals that the annual price rise of 4.6% in the year to May 2015 brought the average house price to £179,696, compared to the peak of £180,990 of November 2007.

London and the South East experienced the strongest growth in annual property prices; both with increases of 9.1%. The East and North East saw the greatest monthly rises of 1.6%.

Wales was the only area to witness an annual price drop, with a 0.6% fall. It also experienced the largest monthly price decline of 1.7%.

The amount of completed house sales in England and Wales fell by 12% to 59,311, compared to 67,321 in March 2014. The number of properties sold for over £1m also dropped, by 6% to 842, from 893 the previous year.

The Land Registry’s Price Paid Data includes over 62,100 residential property sales in England and Wales lodged for registration in May 2015. The most expensive sale last month was in London SW3 for £10,050,000 and the cheapest was in Copeland, Cumbria for £10,000.

 

 

 

 

 

 

Build-to-Rent Committee Hopes to Sell Concept to Public

Published On: June 29, 2015 at 11:54 am

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The British Property Federation (BPF) has created a new committee that will hopefully sell the build-to-rent concept to the public, local councils and ministers.

Build-to-Rent Committee Hopes to Sell Concept to Public

Build-to-Rent Committee Hopes to Sell Concept to Public

The UK Residential Fund Manager at LaSalle Investment Management and former head of the Government’s Private Rented Sector Taskforce, Andrew Stanford, will chair the committee.

Acquisitions Manager at FizzyLiving, Adam Russell, will be the vice-chair.

The BPF says: “At a time when the housing crisis is acute and private renting has overtaken the social housing sector as the second largest tenure in England, the committee will reinforce the important role that build-to-rent can play in increasing housing supply and tenant choice.

“It will work to ensure that both local and central Government continue to support the sector, and create the right conditions to encourage investment and speed up delivery of this new housing product.”1 

Stanford adds: “Build-to-rent fits so well with so many of the new Government’s priorities, delivering new supply of quality rented homes, accelerating the speed of housing development, making good use of brownfield sites and meeting customer needs.

“There are many innovators in this new market and I am so pleased we have brought many of them together, in this new group, to drive that important dialogue with local and national Government forward.”1 

Members of the committee will include representatives from Knight Frank and Savills estate agents.

1 http://www.propertyindustryeye.com/new-build-to-rent-committee-will-bid-to-sell-concept-to-the-public/

 

 

 

 

 

C of E Urged to Sell its £2bn Land Estate for Housing

Published On: June 11, 2015 at 4:44 pm

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The Church of England has been urged to sell off some of its land to help Britain’s housing crisis. The Church is one of the country’s biggest landowners.

The Centre for Theology & Community and the Christian campaigning group, Housing Justice have proposed this measure in a new report.

They warn that the shortage of affordable homes poses a fundamental threat to the identity of communities and cities in the country.

The report says: “Unless we act now, it may be too late and the poorest will be pushed to the geographical margins. We need to build on the success of campaigns for a Living Wage and responsible lending, otherwise they will be undermined by the consequences of the housing crisis.”

The Church has a huge estate, including properties in villages, towns and cities around the country and over 100,000 acres of land in England and Wales. Its property portfolio is worth around £2 billion and accounts for almost a third of the £6.7 billion in assets it holds.

The report says that the Church should lead by example in helping to tackle the housing crisis: “The Church cannot speak out on this or any other issue without putting its own house in order. If churches are to call for others to make housing a priority, we will have to consider how we steward our property and how congregations might offer practical support to housing associations.”

Selling off some land to build homes is one way it can help, as various denominations own a “surprising amount of land.”

C of E Urged to Sell its £2bn Land Estate for Housing

C of E Urged to Sell its £2bn Land Estate for Housing

“Where land for housing is scarce, Church land can be particularly useful to housing associations,” says the report.

A large vicarage in Gloucester is an example of this, when land was leased to a housing association and used to create 14 new homes.

The Church could also provide volunteers for housing associations and meet the “spiritual needs of residents”1, as well as campaigning for housing.

Thee are 12,000 parishes in England, however, many churches have been hesitant to consider developing their land, often keeping unused land for years. However, charity law allows them to sell land below market value for social housing if it falls within their charitable objectives.

The Venerable Rachel Treweek, Archdeacon of Hackney and Bishop-Elect of Gloucester, writes in the foreword: “I have seen at first hand what the Church can do in partnership with others: How it has been at the heart of initiatives which have secured a Living Wage for low-paid workers, challenged exploitive lending and supported ethical alternatives. I believe the Church can have the same transformative impact on the issue of housing.”1

Chief Executive of the National Housing Federation (NHF), David Orr, says: “By bringing together our assets and skills, churches and housing associations can go further in creating lasting change in our communities.”1

Chief Executive of Shelter, Campbell Robb, responds to the report: “At a time when our housing shortage is leaving thousands of families struggling to keep a roof over their heads, it’s inspiring to see a proposal encouraging integral parts of the community to help provide the genuinely affordable homes we need.

“But ultimately, the Government needs to meet initiatives like these halfway by investing in building the homes we need, because without the Government rolling up its sleeves as well, we won’t fix this crisis.”1 

A spokesperson for the Department for Communities and Local Government states: “We welcome this report, particularly the proposal on releasing land for social housing.

“Housing is an important issue for us all, and while house building is at a seven-year high, with construction starts up 5% over the last year alone, we must maintain this momentum.”1

Only 6% of land owned by the Church has been reserved for development for housing. A spokesperson for the Church of England says: “The Church Commissioners own 105,000 acres of rural let land across England and Wales.

“Approximately, 6,000 of these acres have been identified for strategic development, including the provision of new market and affordable homes delivered in conjunction with house builders and housing associations.”1

Land and property belonging to the Church is owned and managed by 41 dioceses, making it difficult to determine how the plans would work. Its assets include 16,000 churches in England and 105,000 acres of land in England and Wales.

Alongside large parts of land in cathedral cities such as Canterbury, York, Peterborough and Ely, the Church has investments in commercial and residential property, such as the Hyde Park Estate in London. Its overall property portfolio is worth around £2 billion.

The Church continues to buy land, acquiring 121 acres in Carlisle, 50 acres in Peterborough and 765 acres in Kent last year, as well as 17,000 acres of forestry in Scotland and Wales.

The land owned by the Church is not confined to Britain. Last year, it bought a share of an empty office building in Burbank, California and land in Michigan for retail and residential development. It also purchased 27,000 acres of forest in Virginia and land in the Northern Territory, Australia for sandalwood plantations.

1 http://www.independent.co.uk/news/uk/home-news/church-of-england-must-sell-some-off-of-its-land-in-response-to-housing-crisis-says-report-10311182.html

 

UK Property Prices to Rise 25% in Next Five Years

Published On: June 11, 2015 at 12:40 pm

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Property prices in the UK are expected to increase by 25% in the next five years and become even more unaffordable due to a huge shortage of houses for sale, a leading organisation has cautioned.

The Royal Institution of Chartered Surveyors (RICS) revealed that the supply of properties for sale, measured by the average number on a chartered surveyor estate agent’s books, has dropped to the lowest level since records began in January 1978.

Furthermore, the anticipated post-general election supply boom has failed to emerge, with the North West and London experiencing the sharpest fall in instructions compared to April.

The average stock of properties per surveyor is now 52, down by around 12% since the start of the year. Meanwhile, new buyer inquiries rose at their fastest rate in over a year. As a

UK Property Prices to Rise 25% in Next Five Years

UK Property Prices to Rise 25% in Next Five Years

consequence, house prices increased further in May at a quicker pace than in April, found RICS.

Economists have indicated that prices will rise again now that the Conservative Government is in power. Earlier this month, Chief Economist at F&C Investments, Steven Bell, said boom conditions have returned to the market.

Last week, Halifax’s Housing Economist, Martin Ellis, warned that housing supply “remains extremely tight.”

He continued: “The imbalance between supply and demand is likely to continue to push up house prices over the coming months.”1

The Halifax and Nationwide both found the average house price to be £195,000-£196,000.

Chief Economist at RICS, Simon Rubinsohn, says: “There has been some hope that the removal of political uncertainty would encourage more properties onto the market, but the initial indications are that this is not proving to be the case.

“As a result, it is hardly surprising that prices across much of the country are continuing to be squeezed higher, with property set to become ever more unaffordable.”

He adds that feedback from RICS members “points to prices at a headline level rising by another 25% over the next five years.”1

He says that this suggests there is no real confidence amongst members that the Government will deliver effective measures to boost new supply.

The chartered surveyor, Frost Partnership in Ashford, Surrey, told RICS: “Listings are in very short supply, which is pushing up asking prices to unrealistic levels in some cases.”1 

However, Christopher Green of Curzon Land in central London, which specialises in prime property investments, was pleased with the election result, telling RICS: “The market has gained an immense amount of optimism now that the socialist spectre has been removed for the next five years.”1 

But tenants are also receiving some bad news – RICS members are also forecasting rent rises averaging around 3% in the next 12 months. The group says this reflects the fact that demand for rental accommodation is continuing to grow.

“Contributors [to the study] anticipate that rents will rise across all parts of the UK over the next three months, with expectations most elevated in the East Midlands and the South West,”1 RICS concludes.

1 http://www.martinco.com/news/2015/06/10/uk-house-prices-will-rise-25-in-next-five-years/?utm_campaign=Social%20Media&utm_content=15884523&utm_medium=social&utm_source=twitter#.VXlHQlupr8t

Councils Urged to Release Land for New Homes

Published On: June 11, 2015 at 8:46 am

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Communities Secretary Greg Clark has urged Whitehall departments to release leftover and unused land and property for new homes.

Councils Urged to Release Land for New Homes

Councils Urged to Release Land for New Homes

Clark says that departments must “loosen their grip” on sites that could be used for house building. He has set a target of 150,000 homes built on redundant land by 2020. This is equivalent to the amount of houses in Wakefield.

He also asks England’s 326 councils to look at the “significant” land assets they hold and use some of these plots, especially brownfield land, for new builds.

He explains: “The chance to own your own home should be available to everyone who works hard and aspires to. That is what a government for working people is about – making sure people have the security they need to build a brighter future for them and their families.”1

The new local government transparency code requires councils to publish their property and asset registers.

Government accounts reveal that in 2011, councils held £223 billion of assets, £108 billion of which was in land and property.

The Housing Bill, outlined in the Queen’s Speech, obliges local authorities to create and maintain a register of brownfield land that is suitable for housing development, including their own land.

1 http://www.propertyindustryeye.com/local-councils-must-relinquish-land-for-new-homes/