Posts with tag: new build homes

Customer Interest High Despite Referendum, Reports Housebuilder

Published On: July 27, 2016 at 9:39 am

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In its latest half-year report, housebuilder Taylor Wimpey claims that customer interest continues to be high, despite last month’s EU referendum.

In the first six months of 2016, the builder completed a total of 6,019 homes, up by 3% on the same period last year.

Its average selling price was also up, by 5.8%, to £238,000.

Looking ahead, Taylor Wimpey reports that it has a strong order book for the future, representing 8,683 new homes.

Customer Interest High Despite Referendum, Reports Housebuilder

Customer Interest High Despite Referendum, Reports Housebuilder

The report found that although it is too early to assess the long-term effects of the EU referendum result, there has been no meaningful change to the housebuilder’s business to date, with trading in the past month at a normal seasonal range.

Since 24th June (the date the referendum result was announced), the early confidence indicators amongst homebuyers, alongside continued competitive lending by mortgage providers, are encouraging the resilience of the UK housing market.

Taylor Wimpey has also found that the Help to Buy scheme continues to be a differentiator for new build housing, and remains popular with its customers.

Positively, the housebuilder reports that commentary over the last month from the Government, Bank of England and mortgage lenders demonstrates a commitment to housing supply and recognition that there remains a fundamental imbalance between demand and supply.

Additionally, customer interest from Taylor Wimpey remains high, with website visits solid, and customers continuing to register interest in forthcoming developments and make appointments to progress their home purchases. Although the builder experienced a small increase in the average cancellation rate immediately after the referendum, this remained low compared to historic norms and is now back in line with recent low levels.

However, it’s not good news for the prime central London market, where demand has continued to slow. Despite this, the wider London market remains robust.

Taylor Wimpey insists that through focusing on creating long-term value and mitigating future risk, it delivers on providing homes in the right location, which is a “key determinant of a home purchase”. It is currently operating from 286 locations across the country, in villages, towns and cities “where people want to live”.

As a result, the housebuilder believes that it will continue to perform well throughout all market conditions.

The Chief Executive of Taylor Wimpey, Pete Redfern, comments: “We have delivered a strong operational and financial performance, with continued growth in profitability, building over 6,000 new homes across the country during the first half of 2016.

“One month on from the EU referendum, current trading remains in line with normal seasonal patterns. Customer interest continues to be high, with a good level of visitors both to our developments and to our website. We are monitoring customer confidence closely across a number of metrics, including appointment bookings, and these continue to be solid. Whilst it is still too early to assess what the longer-term impact from the referendum result on the housing market may be, we are encouraged by the first month’s trading and by continued competitive lending from the mortgage providers, as well as the positive commentary from Government and policymakers.”

If confidence in the housing market continues, will the demand and supply imbalance be corrected?

What Can I Do if My New Build Home Has Faults?

Published On: June 2, 2016 at 8:39 am

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If you’re buying a new build home, you’d expect to enter into worry-free homeownership. But that’s not always how it turns out. So what can you do if your new build property has faults?

Since 2005, on the Government’s request, the House Builders Federation (HBF) and the National House Building Council (NHBC) have commissioned an annual survey on buyers’ satisfaction with new build homes.

In 2015, the study found that 27% of buyers said their new home had more problems than they had been expecting. Of these, 35% had reported more than ten problems to their builder, while 20% had reported over 16 issues.

With most goods, a consumer has the right to reject them and demand their money back if they fail to live up to expectations. However, property is exempt from the Sale and Supply of Goods Act, causing many homebuyers to be stuck with faulty properties.

So what can you do about problems with a new build home?

What Can I Do if My New Build Home Has Faults?

What Can I Do if My New Build Home Has Faults?

The Chief Executive of the HomeOwners Alliance, Paula Higgins, offers the following advice:

  • “If your home is less than ten years old – even if you are not the first owner – it is almost certainly covered by a warranty. In 80% of cases, this will be the Buildmark policy provided by the NHBC. Other policies include BLP, LABC, Premier Guarantee, Checkmate and Zurich. Most of these policies work on the same principle.
  • “During the first two years, the policy covers most defects. Contact your builder directly in the first instance. If your builder is no longer in business, contact NHBC.
  • “In years three to ten, the policy will only cover only major defects, such as structural or weather-proofing problems.
  • “From year 11 onwards, you will have to rely on your own insurance policy.”

Before the initial two-year period expires, you are advised to give you property a thorough check over and write a final report of any outstanding problems for your builder.

Higgins suggests employing a surveyor to conduct a snagging survey to list any defects that need attention and send a copy to you and your builder. However, this costs from £300 upwards. Although it does not require your builder to correct any faults, it will apply pressure on them to sort out any problems.

If your builder does not respond satisfactorily, you should complain to the NHBC, or another warranty provider, as soon as possible. If you do not receive a satisfactory answer from your warranty provider, you could:

  • Make a claim about the warranty provider to the Financial Ombudsman Service.
  • Issue a claim in court.
  • Contact the Consumer Code for Homebuilders – however, be aware that in 2013, homebuyers using this service claimed a total of £133,845, but just £26,512 was awarded to buyers.

If you are still unsatisfied with your builder’s response, you can either take a legal route or consider another form of action, such as shaming your builder.

Some homebuyers that were faced with unresolved problems in their new build properties have contacted the press, hung banners from their home and set up websites and Twitter accounts to spread the message.

However, always ensure that you do not make any defamatory statements; always stick to the facts.

Before taking any direct action yourself, consider the following:

  • You could be upsetting your new neighbours and lowering the value of your property. Anything published on the internet can stay around for years, even if the problems are resolved.
  • When you come to sell your property, you will be asked by the buyer’s solicitor to disclose any disputes you had connected with your home.
  • Always apply a common sense test – if you are dealing with a minor problem, such as badly painted walls, it can sometimes be a better idea to just fix the problem yourself and avoid an unnecessary fight.

Have you ever had problems with a new build home?

Private Housebuilding Rates at Lowest Level for Almost Three Years

Published On: April 20, 2016 at 9:13 am

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Private housebuilding is rising at the lowest rate for almost three years, according to the UK Construction Market Survey from the Royal Institution of Chartered Surveyors (RICS).

Although the Government has pledged to deliver 200,000 new homes by 2020, the RICS reports that growth in the private housing sector slowed down considerably over the first quarter (Q1) of this year.

Private Housebuilding Rates at Lowest Level for Almost Three Years

Private Housebuilding Rates at Lowest Level for Almost Three Years

During the first three months of the year, private housebuilding rose at the slowest pace since Q2 2013, with just 36% more of those working in the sector reporting a rise in growth rather than a fall. In Q1 2015, this figure was close to 50%.

Across all sectors, the survey shows that while 33% more respondents saw workloads increase rather than decline in the final quarter of 2015, this figure fell by 5% in Q1 2016.

Confidence in the future of housebuilding also dropped, with the amount of construction professionals expecting to see workloads rise over the next 12 months exceeding those predicting a fall by 55%. However, this time last year, a huge 79% more respondents expected to see workloads increase.

Meanwhile, following 4% employment growth in 2015, respondents expect headcounts to continue rising in the next year, with a net balance of 41% forecasting an average growth of 2%.

The Chief Economist at the RICS, Simon Rubinsohn, comments: “On the surface, it might seem surprising that we are witnessing a slowdown in the construction sector just a few months after hearing the Chancellor’s ‘We are the Builders’ speech, given the Government’s significant commitment to this sector.

“One might well ask why growth in private housing workloads is softening at a time when policy is firmly focused on the creation of new starter homes. We have long held the view that starter homes cannot be the only solution. There is an issue around the availability of land on which new houses can be built, and we would like to see more being done to free up private brownfield sites.”

He continues: “Our survey tells us that planning delays are one of the biggest barriers to growth in the construction sector. We have recommended that councils work together to create a team of emergency planners who can parachute into boroughs that are experiencing significant delays, therefore reducing a major growth barrier.

“That said, we cannot discount the climate of uncertainty caused by the forthcoming EU referendum. We know that a range of sectors have been affected by these issues, as investors look to delay any decisions until a final outcome has been determined, and construction is no exception.”

Indeed, it is expected that house prices and sales will fall as the EU referendum approaches.

Go on a London Property Easter Hunt this Weekend

Published On: March 24, 2016 at 9:50 am

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Breathe new life into your buy-to-let portfolio this weekend with a London property Easter hunt through the capital’s latest new developments.

Spring is an ideal time to make new investments and hop straight into the property market. And with London no longer driving house price growth throughout the UK, it really will be a buyers’ market this Easter.

There are many new build developments popping up across the capital, so we’ve picked out the best for you to view, alongside enjoying some family time at London’s best attractions.

So where should you look?

Southwark

Go on a London Property Easter Hunt this Weekend

Go on a London Property Easter Hunt this Weekend

Southwark is a great place to start, thanks to its string of riverside attractions. Head over to County Hall, where the office of former Mayor of London Ken Livingstone is part of a marketing suite for Thirty Casson Square at the Southbank Place development.

The range of studios, one, two and three-bedroom apartments is named after Sir Hugh Casson, the late director of architecture for the 1951 Festival of Britain. Prices start at £750,000, while you can enjoy family fun at Shrek’s Adventure and the London Eye nearby.

Borough Market

After a day of strolling around the Tate Modern or Borough Market, take a look at the show home centre for three SE1 schemes by developer Crest.

These include Valentine Place, 42 flats and mews houses near the Old Vic theatre, with prices starting at £735,000, and Snowsfields Yard, 28 flats sitting in the shadow of The Shard, costing from £765,000.

City of London 

Cross the iconic London Bridge into the City of London to visit The Stage, a 412-home development situated on the spot where Shakespeare’s Romeo and Juliet and Henry V were first performed.

Archaeological remains of the original stage will be encased in glass as part of a new heritage centre, which will include a 200-seat sunken amphitheatre. Show flats were designed by award-winning Nicola Fontanella and created in refurbished railway arches on the 1.2-acre site. Homes cost from £695,000.

Finsbury Park

Many house builders are collaborating with various companies to combine design and architecture. Some work with luxury brands, while others focus on high street chains and specialist local shops to provide homes where first time buyers can afford to get the look.

Furnishing store Heal’s has designed Scandinavian-style show homes at Woodberry Down, where new flats, starting at £465,000, overlook two reservoirs. Enjoy the sailing club and nature trail with your loved ones this Easter.

Over Half of New Build Homes are Too Small, Says RIBA

Published On: December 6, 2015 at 12:04 pm

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More than half of the new build family homes under construction by private house builders in the UK are too small, according to the Royal Institute of British Architects (RIBA).

The average new three-bedroom house is lacking space equivalent to a bathroom, its report states, while many are missing space the size of a double bedroom, if judged against the Government’s minimum reasonable space standards launched in October.

Homes outside London are the worst affected by this “rabbit hutch” trend, found RIBA after measuring a sample of new homes on 100 developments.

Over Half of New Build Homes are Too Small, Says RIBA

Over Half of New Build Homes are Too Small, Says RIBA

The organisation identified two of the leading house builders that are the worst offenders. From a sample of new three-bed homes surveyed, RIBA found that Barratt Homes’ properties are on average 6.7 square metres smaller than minimum space standards and homes by Persimmon are typically 10.8 square metres too small – around the size of a double bedroom.

President of RIBA, Jane Duncan, says: “Tiny rabbit hutch new builds should be a thing of the past. But, sadly, our research shows that, for many people, a new home means living somewhere that’s been built well below the minimum space standard needed for a comfortable home. The Government must take action to ensure a fairer minimum space standard is applied to all new homes across the country.”1

RIBA warns that the lack of space is “depriving thousands of families of the space needed for them to live comfortably and cohesively, to eat and socialise together, to accommodate a growing family or ageing relatives, or even to store possessions including everyday necessities such as a vacuum cleaner.”

It identifies Persimmon’s Staynor Hall development in Selby, North Yorkshire. Its Hanbury three-bedroom, two-storey house has a floor space of 70.7 square metres, when the Government says the minimum space for a three-bed house for a family of five should be at least 93 square metres.

These space standards are optional for local councils to use. House builders have opposed them, claiming they reduce customer choice.

The Executive Chairman of the Home Builders Federation (HBF) – which represents firms including Barratt and Persimmon – Stewart Baseley, says: “Overwhelmingly, the people that matter – buyers of new build homes – are happy with their houses and how they are designed.

“Imposing space standards and so restricting what builders can build takes away choice from home buyers. This would not only prevent more people from buying their own home but also exacerbate the acute shortage of housing that we have experienced over several decades.”

A spokesperson for Barratt adds: “We make the best use of space and our customer recommendation score is over 90%, the only major national house builder to achieve this.”

In London, minimum space standards have been in force since 2011. As a result, new homes are significantly bigger. The average three-bed home in the capital is now 25 square metres bigger than in Yorkshire – the area with the smallest new homes.

New three-bed properties in the West Midlands are also more than seven square metres smaller than the minimum standard.

The RIBA report states: “On average, every new three-bed home in Leeds, York or Scarborough is missing out on the equivalent of a double bedroom and a family living room.”

RIBA had highlighted another issue with housing space – the conversion of office buildings into homes after the relaxation of planning rules in 2013. Last year, 20,000 of these homes were built, but the lack of regulation means they are some of the smallest available.

The report claims: “Across the country, two-person ‘apartments’ of less than 14 square metres (the size of a typical bedroom) are being delivered. Under the national space standard, the minimum floor area for any new home is 37 square metres – almost three times the size.”1

1 http://www.theguardian.com/society/2015/dec/02/rabbit-hutch-homes-should-be-thing-of-the-past-say-architects

1.5m Homes Go from Owner-Occupied to Rental Sector

Published On: November 9, 2015 at 1:00 pm

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1.5m Homes Go from Owner-Occupied to Rental Sector

1.5m Homes Go from Owner-Occupied to Rental Sector

In the past ten years, two million homes have changed tenure, according to recent research from Countrywide.

Most of the properties, 1,550,000 homes, have gone from being owner-occupied to the private rental sector.

The remaining 550,000 have changed from rental sector homes to owner-occupier properties.

The study also found that 700,000 new homes, built since 2005, are in the private rental sector.

Director of Research at Countrywide, Johnny Morris, comments on the findings: “The rapid growth of the private rented sector has to come from somewhere. While the tenure may change, the physical home remains. The sector has been growing since 2005, but the number of homeowners has fallen in each of the last ten years.

“This scale of shift in tenure shows that the current push from the Government to increase the number of homeowners is unlikely to be enough to reverse the decline.”

He continues: “Although landlords and first time buyers might not appear natural bedfellows, because they tend to look for similar types of homes, they do end up selling to each other.

“Many landlords face a choice ten to 15 years after buying a home, between refurbishing the property or selling it. Those landlords who choose to sell up offer an opportunity to first time buyers willing to put some work into their first home, often adding to its value.”1 

1 http://www.propertyindustryeye.com/over-1-5m-homes-go-from-owner-occupation-into-private-rented-sector/