Posts with tag: Mayor of London

Which London Mayoral Candidate Will Solve the Housing Crisis?

Published On: May 4, 2016 at 8:38 am

Tags: housing crisis,London,London mayoral election,Mayor of London

Tomorrow, Londoners will vote for the capital’s next mayor. But which London mayoral candidate will work best towards solving the housing crisis?

Housing remains the number one issue for many living in the capital, with a lack of supply causing spiralling house prices. Research from ComRes confirms that the housing crisis will be the main determining factor in who is elected tomorrow.

In a bid to address the capital’s chronic shortage of supply, the leading London mayoral candidates have put housing at the core of their manifestos, with front-runners Sadiq Khan and Zac Goldsmith both calling the election a “referendum on housing”.

The Residential Landlords Association has also released its own London mayoral manifesto, detailing what it thinks should be done to solve the housing crisis.

As house prices soared under the two most recent London mayors – Ken Livingstone and Boris Johnson – the next mayor will be put under great pressure to do more to make London more affordable.

Which London Mayoral Candidate Will Solve the Housing Crisis?

Residential property prices are now at least ten times the average salary in 28 of London’s 33 boroughs, with prices in many of London’s most expensive areas now out of reach for all but the super-rich. Worryingly, however, it is believed that even the wealthiest of Londoners are having to turn to the private rental sector.

So which candidate will solve the capital’s housing crisis?

Sadiq Khan

Labour’s Sadiq Khan has promised to deliver 80,000 new homes in London every year, 50% of which will be affordable. He plans to build these homes on brownfield land. Khan also wants to form a new homes division in City Hall, set up a not-for-profit letting agency, restrict rent rises, and invest more in the London Affordable Homes Programme.

Zac Goldsmith

Zac Goldsmith, the Conservative candidate, has also vowed to focus on releasing publicly owned brownfield land for the construction of more residential properties, hoping to deliver 50,000 new homes in London per year by 2020. This would be financed in part by a new pan-London investment fund for overseas investors. He also aims to bring thousands of empty homes back into use, clamp down on rogue landlords, and introduce longer-term tenancies.

Caroline Pidgeon

The Liberal Democrat candidate wants to boost new housing supply in the capital, including a substantially higher amount of council homes at affordable rent prices. She also plans to make all private landlords in the capital registered, introduce a right to buy scheme for tenants if their landlord decides to sell, abolish letting agent fees for tenants, and introduce three to five-year tenancies.

Sian Berry

The Green Party’s Sian Berry would like the Mayor of London to be given greater rent controls, as part of an effort to help private tenants in the capital. She also believes there should be a voluntary register of landlords, as well as a new Renters’ Union, financed by City Hall, designed to provide tenants with greater support and advice.

Pete Whittle

Peter Whittle, of UKIP, has pledged to lobby for sensible migration levels to help restrict demand for housing, alongside boosting housebuilding levels. He claims that producing a comprehensive registry of all London brownfield sites is crucial to increasing the supply of land for housebuilding. Whittle plans to tax buy-to-let landlords at a higher rate if they leave their properties empty, and offer long-term residents in London priority when it comes to social housing.

Who will you be voting for?

UK House Prices Down, but London Still Powers Ahead

Published On: April 28, 2016 at 11:05 am

Author: Em Morley

Categories: Property News

Tags: average house price,house prices,housing crisis,London,Mayor of London

The average house price in the UK dropped slightly in March, but prices are still rising in London, according to the latest house price index from Land Registry.

House prices fell by an average of 0.5% last month, while they were up by 0.2% in London on a monthly basis.

UK House Prices Down, but London Still Powers Ahead

Annually, house price growth now stands at 6.7%, taking the average property value to £189,901 in England and Wales.

The amount of property transactions has also increased over the last year. From October 2014 to January 2015, Land Registry recorded an average of 73,744 sales per month. In the same period a year later, the figure was 74,374. It has been claimed that this rise is a result of landlords rushing into the property market to avoid the 3% Stamp Duty surcharge.

Alongside the monthly increase recorded in March, London has also seen the highest annual house price growth of all regions, at 13.9%. The average property in the capital is now worth £534,785.

The East of England is the only other region to record monthly house price growth, of 0.2%.

The London borough with the highest annual price rise is Lewisham, at a huge 19.9%, while the greatest monthly increase was seen in Brent, at 2.8%.

Kensington and Chelsea experienced the smallest annual increase of 4.2%, amid claims that the prime London property market is running out of steam.

Prices were down the most in Hammersmith & Fulham, by 1.3%.

The Managing Director of estate agent Stirling Ackroyd, Andrew Bridges, comments on the data: “House prices across the country may be coasting in neutral, but the capital is speeding ahead. London’s lead is getting larger and the demand for life in the fast lane shows no sign of letting up.

“Such momentum in London also comes despite a few road bumps. Stamp Duty surcharges have caused a slight slowdown at the top end of the market and particularly in the west of the capital. Gears are grinding in old prime areas, such as Kensington and Chelsea and Hammersmith & Fulham. The new champions of the London property market are areas further east and further out.”

The London property market looks set to face changes in the near future, as the London mayoral election takes place next week. Online estate agent eMoov has analysed what each candidate can do for the housing crisis: /london-mayor-candidate-best-housing-market/

Which London Mayor Candidate is Best for the Housing Market?

Published On: April 27, 2016 at 10:24 am

Author: Em Morley

Categories: Property News

Tags: London,London property market,Mayor of London

As the race to become the next Mayor of London heats up, online estate agent eMoov has released its study into what each candidate will mean for the housing market.

On 5^th May, Londoners will vote for their next mayor. With the current mayor, Boris Johnson, choosing not to run, the race is down to Labour candidate Sadiq Khan and Conservative Zac Goldsmith, the two front runners.

eMoov has analysed the two parties’ housing pledges:

Conservative

To build 50,000 new homes by 2020.
To give Londoners that have lived and worked in the capital for over three years the first chance to buy new properties built on Transport for London-owned land.

Labour

To introduce the Homes for London scheme, working with City Hall, local councils and property developers to address the housing shortage.
To help existing London homeowners by improving energy efficiency, helping with service charges and the renewal of existing leases.

At present, London is experiencing a chronic shortage of housing supply, causing the huge amount of aspiring homeowners hoping to get on the property ladder to be forced into the private rental sector.

Which London Mayor Candidate is Best for the Housing Market?

eMoov has found that historically, a Labour mayor has led an almost continuously increasing level of property construction in the capital. Between 2001 and 2008, there was a rise in housing stock of 186,000 homes under a Labour mayor.

However, under a Conservative mayor between 2008 and 2014, the level of housing stock dropped significantly, with just 152,000 new properties being built.

With London house prices continuing to spiral beyond the reach of hopeful buyers, a reduction in demand by way of a growth in supply will go some way to cool the London housing crisis, helping those desperate to buy.

For those already on the property ladder, the value of their property will be their primary concern ahead of the election.

During Labour’s Ken Livingstone’s eight years as mayor, there were four occasions between 2002-05 when house prices in London rose at a lower rate than the rest of the UK. Up until 2008, when Johnson was elected, London house prices grew by 89%. However, the UK average was a huge 113% – bucking the trend of the capital driving the national housing market.

Under the Conservative mayor, however, there were six years in which London surpassed the rest of the UK. With Johnson as mayor, prices rose by 41% between 2008-15, compared to 30% nationally. Values in half of UK towns and cities are said to still be below the peaks seen before the financial crash.

eMoov concludes that under Labour, house prices increased at a faster rate, but failed to outperform the rest of the UK, while the Conservatives oversaw a slower pace of growth, but the London market exceeded the rest of the UK.

The CEO of eMoov, Russell Quirk, comments: “It’s always hard to pick a side when we, the UK public, are subjected to the onslaught of smoke and mirrors deployed in the run up to an election. We’ve seen the monumental failure of the Help to Buy scheme over recent years, which was supposed to be the answer to our first time buyer woes, so it’s always hard to decide which candidate to trust.

“However, historic data doesn’t lie and so this research shows it’s pretty clear cut on who to vote for, depending on whether you’re an aspiring or existing London homeowner.”

He explains: “Yes, Boris and the Conservatives have generally seen London property values increase at a higher rate than the UK, but one might argue that having inherited a pretty raw deal in 2008 after the market crashed, the only way for things to go were up. As the capital and crown in the UK market, London was always going to see a healthier rate of growth than the rest of the UK, as the market found its feet again.

“But on the face of it, if you do own a London property, a Conservative mayor is going to be better for you in terms of your property price, so a vote for Goldsmith is probably the way to go.

“However, the capital is in the tight clutches of a housing deficit at present. I’ve highlighted time and time again that the lack of London supply is fuelling a dangerously artificial bubble in the capital. It’s only a matter of time before it pops again. Therefore, Labour’s superior record where building is concerned will not only help stabilise the market but will also help cool prices and give aspirational homeowners in the capital a better chance of getting on the first rung.”

Who do you think should win the race?

RLA Launches its London Mayoral Manifesto for the Private Rental Sector

Published On: April 12, 2016 at 8:55 am

Author: Em Morley

Categories: Landlord News

Tags: housing crisis,London,London landlords,London property market,Mayor of London,rogue landlords

The Residential Landlords Association (RLA) has launched its London Mayoral Manifesto, setting out its hopes for the private rental sector under the new mayor of London.

The Landlords4London document details what the RLA believes to be priorities for the successful London mayoral candidate in regard to supporting the private rental sector.

RLA Launches its London Mayoral Manifesto for the Private Rental Sector

The RLA is discouraging rent controls, encouraging better enforcement of current legislation, boosting supply, introducing flexible tenancies and addressing the buy-to-leave trend.

The organisation will be following the campaign trail across London ahead of the mayoral election on 5^th May. It will lobby the candidates on the issues contained within the document.

It opposes rent controls on the basis that they will limit the supply and quality of private rental housing, and is encouraging the successful candidate to look at enforcing existing legislation more effectively to tackle rogue landlords, rather than introducing new regulations.

The RLA also wants the new mayor to commit to encouraging investment in the private rental sector, as well as introducing flexible tenancies and cracking down on the buy-to-leave trend, which puts added strain on London’s housing market.

The Chairman of the RLA, Alan Ward, says: “The private rented sector is a vital provider of housing in the capital, with a huge shortfall in the social housing offer and spiralling house prices.

“After the hammering buy-to-let landlords have taken at the hands of the Chancellor, we want the successful mayoral candidate to recognise the essential role these landlords play in tackling London’s housing crisis.”¹

The RLA’s full manifesto document can be found here: http://www.rla.org.uk/landlord/lobbying/elections/london-mayoral-election-2016.shtml

We will continue to keep you updated with all the latest information for landlords and changes to the London housing market.

¹http://news.rla.org.uk/rla-launches-lonection-manifesto/

Housing Campaigner Running for Mayor of London

Published On: May 19, 2015 at 2:28 pm

Author: Em Morley

Categories: Landlord News

Tags: London housing,Mayor of London,Something New political party

Successful housing campaigner Lindsey Garrett, from the New Era estate in Hackney, is running for the Mayor of London position.

Garrett is promising a new era for the city after leading a tenants’ campaign last year. US investors Westbrook Partners purchased the New Era estate in Hoxton, saying that it would double the affordable rents to market rates. This caused accusations of social cleansing.

Westbrook Partners then backed out of the plans and sold the estate to an affordable housing provider.

Garrett is focusing her political efforts on housing rights; however, her draft manifesto includes a range of measures to change who London is governed for. She wishes to build a city that nurtures its residents.

Housing Campaigner Running for Mayor of London

Garrett’s plans include the following:

Rent controls and a mandatory London living wage.

Public housing funded by a tax on private rental sector landlords’ rental income.

Devolution equal to Scotland, votes at 16-years-old and electoral reform for councils by replacing 33 authorities with five boroughs.

Putting the Corporation of London under the control of Parliament.

Approval of Heathrow Airport expansion.

A single, integrated NHS for the city.

An education system that gives Londoners a head start and aids people throughout their careers.

A city tax on hotel stays and funding for free/discounted cultural access for all Londoners.

Better policing and a crackdown on crimes against vulnerable people.

Zero tolerance on police attitudes that damage public trust.

An orbital economy to cut commuting times and mass river transport for a greener economy.

Read the full draft manifesto here: https://d3n8a8pro7vhmx.cloudfront.net/somethingnew/pages/193/attachments/original/1431563684/A_New_Era_for_London.pdf?1431563684.

Garrett says: “This is the city I want to live in; a city that serves its people rather than bleeding them dry. With Labour opposed to both rent controls and building enough homes, and the Conservative Party set to decimate housing associations, someone needs to stand up for Londoners, and it looks like that will have to be me.”¹

Garrett belongs to a new political party, Something New. Recently, lobby group Generation Rent revealed that their director Alex Hilton was stepping down. Read more: /generation-rents-new-director-revealed/. He later announced that he is joining Something New.

¹http://www.landlordtoday.co.uk/breaking-news/2015/5/housing-campaigner-runs-for-london-mayor