High street bank lending for house purchases grew by 3.6 per cent compared to the same month in 2017, UK Finance figures released today demonstrate.

However, remortgaging approvals fell by a huge 13.5 per cent, with total mortgage approvals down 4.1 per cent.

But gross lending across the residential market climbed 5.6 per cent year on year to £25.5bn.

Eric Leenders, managing director of personal finance at UK Finance, said: “Overall mortgage lending grew in October, despite an uncertain economic environment, while house purchase mortgage approvals by the main high street banks were also up on the previous year.

“However remortgaging activity has softened, following a period of strong growth driven by fixed rate loans reaching maturity and anticipation of August’s base rate rise.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, said that while new house purchases were up, the figures reflect caution in the market that sale prices are being negotiated down by savvy buyers.

"This may be a little better than many expected but confirms what we have seen on the ground - that some sellers are taking a reality check and recognising that the difference between sale price and purchase price is much more important than the headline figure," he said.

"First-time buyers too are taking advantage of low mortgage rates, ample loan products and a slight easing of the affordability squeeze."

Meanwhile, credit card spending grew 12.1 per cent to £11.3bn for the month, and personal loans and overdrafts climbed 2.3 per cent in the year to October.

Personal deposits grew by 0.8 per cent while savings held in instant access accounts stood 2.6 higher than last October.

“Households are taking a measured approach to credit, with repayments on credit cards broadly in line with spending,” said Leenders.

“This reflects the growing preference of customers to use their credit cards as a means of payment rather than a borrowing mechanism, making the most of additional consumer protections and value-added benefits.”

Businesses borrowed less, UK Finance said, with lending falling by 1.9 per cent in the last 12 months.

Manufacturers bucked the trend to borrow 6.9 per cent more than the previous year, however.

“Appetite for finance among business remains subdued,” said Stephen Pegge, managing director of commercial finance for UK Finance.

This article was originally published HERE.

The research from YouGov, which polled the views of 9,713 British adults, asked whether mortgages that don’t require a deposit because banks lend borrowers the entire cost of a home where a good idea, a bad idea, or if they didn’t know.

While almost half of those polled believed this category of mortgage to be a good idea, 32% said that it was a bad idea, with a not-insignificant 20% saying that they don’t know.

The outlook does vary with age, from 46% of those aged 18 to 24 responding positively, to 49% of those aged 65 and over thinking it is not a good idea.

There are also differences among those thinking it a bad idea, of which 22% in the 18 to 24 age bracket agreed, compared with 37% of those aged 65 and over.

Broken down regionally, 51% of people asked in Scotland said it was a good idea, while the region with the lowest enthusiasts was in London, at 45%.

The poll also shows that females were more likely to support 100% mortgages, with 52% thinking they are a good idea compared with 44% of males.

Some lenders already offer 100% mortgages, although these either insist on having a parent act as a guarantor or that they put some of their own money into a ring fenced account to act as security.

For example, Marsden Building Society’s Family Step mortgages lends at 100% LTV mortgage, albeit with 20% security from family through savings or property.

But it would not be a solution to the current housing crisis, according to Danny Belton, head of lender relationships at the Legal & General Mortgage Club. ‘At the very least it would mean lenders would have to significantly increase the amount of capital they would be required to hold, which is just not sustainable,’ he said.

‘What would be more beneficial is for more buyers to utilise schemes such as shared ownership and Help to Buy or even make use of a Guarantor mortgages,’ he added.

But he also pointed out that there does need to be more innovation in the home lending industry, such as the Cambridge Building Society’s 98% LTV First Step option, aimed at would be buyers currently in rental accommodation who would pass the affordability checks, have a good track record of making rental payments, but are struggling to raise a deposit for their first home.

‘This niche market is only going to grow in the coming years, but 100% LTV mortgages are not the answer to challenges facing younger buyers,’ he concluded.

We need to support models of living that can both improve our actual well-being and reduce material demands on the planet.

Existing models of urban development that can achieve these goals are taking hold across North America. One example is collaborative housing or cohousing.

As municipalities consider the development of smart cities, they have to consider how citizens contribute to the relative “intelligence” of a city. Cohousing is just one such model as it both a form and a process of design for co-operation that helps create vibrant and resilient communities.

Alphabet’s Sidewalk Labs is mapping out a new kind of neighbourhood that would redevelop a 12-acre waterfront district in Toronto called Quayside from “the internet up.”

This is just the beginning of the relationship, as all eyes are on the future development of the 750 acres neighbouring the site along the eastern waterfront.

Introducing Sidewalk Toronto, Waterfront Toronto and Alphabet’s Sidewalk Labs.

It has been a year of scandals at Silicon Valley, from Google sharing emails with app developers to a joint investigation between the Justice Department, the FBI, the Federal Trade Commission and the Securities and Exchange Commission into data leaks by Facebook. A networked neighbourhood built “from the internet up,” may not be the selling feature Sidewalk Labs had hoped it would be. It should come as no surprise that many people are suspicious of this proposal.

Several paths to the Smart City

There are different paths that lead to smart cities. For example, we have techno-utopias that focus on the digital optimization of the city, with a particular focus on infrastructure. Or we might consider how social innovations can lead to a better quality of life for more people.

Of course, there are times when these approaches intersect, but I can’t help but notice the particular focus on the technological aspects of just about every critique of the Quayside project.

These critiques, by academics, technology writers and concerned citizens are warranted because so far, “smart city” approaches the world over have generally been related to top-down processes with a focus on new technologies. People who live in these cities are often excluded from meaningful participation in the planning process that later impacts their lives. Given the levels of engagement on this issue, it’s quite clear that the citizens of Toronto are hungry for the opportunity to truly participate in making their city better.

With this in mind, I want to draw attention to one element of the plan presented by the Quayside proposal: Cohousing.

A model of meaningful collaboration

There is an assumption that people understand what is meant by cohousing, but as a researcher in this field, I can assure you, most people don’t.

Some think it’s some kind of approach to affordable housing, which has yet to be the case in North America. There is little understanding of how the nature of this kind of intentional community represents a fairly radical, and positive, shift in modern living, where people learn through regular practice to build consensus with their neighbours on issues of sharing, co-caring and meaningful collaboration.

This is a model of design, development and management that when done properly, can contribute to a “bottom-up” approach to building the city. Yet in both the proposal itself and media coverage, cohousing isn’t clearly defined.

Vancouver Cohousing Courtyard. Cheryl Gladu, CC BY-NC

What is cohousing?

Cohousing includes participation in the project’s design, development and management by a self-organizing group or collective. It is one of a number of collective housing models that emerged in northern Europe in the late 1960s and 1970s.

Decisions are made by consensus and talking through differences is central to the creation of these communities. Residents own or rent complete private dwellings within the larger project (typically between 15 to 33 households), while also sharing common property, such as a common house, a large kitchen and dining area, guest suites and gardens.

The legal structure of these communities may vary: Some are co-operatives, while others are condominium associations.

Materially simple, relationally rich

One reason that this model is interesting is that it shows us that when members of an intentional community get together to design their own neighbourhood, they opt for less personal space and more shared resources; they opt for materially simple, yet rich relational lives.

These projects can also help “seed community” into a larger area. Despite the fact that most of these communities are not certified green buildings, research shows us that cohousing communities can outperform green buildings on environmental measures, and this is likely related to the governance structure rather than technological innovation. Smart, no?

A case study in Barcelona suggests there is much to gain from the pairing of top-down with bottom-up approaches in terms of smart city development, as partnerships between different stakeholders can reinforce collaboration.

Cohousing communities across Canada and the United States could benefit from the capacity of companies like Sidewalk Labs to mobilize people, politicians and resources.

However, in order for this to work for cohousing communities, there has to be a real opportunity to partner with the eventual occupants so that they have ownership of the process because cohousers themselves must be the driving force behind the process.

The sense of community that emerges from cohousing developments is not merely due to its physical design, nor is it a happy accident — it is the central aim of the development and management process, which starts prior to the design and development of these communities.

This Article was originally published HERE

The figure from a new report from the Building Societies Association says, however, that this is not necessarily a bad thing, although lenders do need to offer more flexible mortgages.

It points out that the Bank of Mum and Dad isn’t necessarily all about parents and grandparents handing over cash in the form of gifts or loans. Lenders can and do facilitate support between generations by parents providing guarantees or using their property or savings as security for the first time buyer’s mortgage.

The research found that 70% of the public see the difficulties young people have buying a home of their own as one of the biggest issues the country faces. However, many also believe that both lenders and the Government could do more to help.

The report sets out practical ideas to help more young people to buy at a time when 86% of people want to own their own home but the financial challenges facing first time buyers explain why many think that they won’t be able to achieve this dream.

In 2017 there were 360,000 first time buyers. The baseline number of new first time buyers every year should be nearer 450,000. But the ability to buy is increasingly concentrated on dual-earning households and those with higher incomes.

Some 59% of aspiring first time buyers expect the Bank of Mum and Dad to support them onto the housing ladder and this means more innovation is needed and lenders are being urged to look again at high loan to value ratio mortgages and how they are underwritten.

It also points out that product innovation in this market is starting to increase the options beyond straight gifting. For example, 59% of building societies will accept a deposit from family members as security, 33% will accept a charge over the property of family members to ease affordability barriers and 10% offer family offset mortgages.

‘Our young people face huge challenges in buying their first homes. Families instinctively want to help, and it’s the job of lenders, regulators and Government to ensure that they have more opportunities to do so in a sustainable way,’ said report co-author Bob Pannell.

According to Robin Fieth, BSA chief executive, home ownership remains a fundamental ambition for the majority of people. ‘Against the challenging backdrop of high prices, a woefully inadequate supply of homes and a growing intergenerational divide, new ideas and strong debate are essential,’ he explained.

‘Family help, the so-called Bank of Mum and Dad, is great for those fortunate enough to have this option, but innovations in underwriting could help all potential first time buyers,’ he added.

This article was originially published HERE

News of some 17,000 brownfield sites have been identified and mapped in Britain, totalling around 27,700 hectares, which could provide space for more than 961,000 new homes.

The work by the National Federation of Builders (NFB) is aimed at helping local authorities to do more to get development underway where it is needed and help to tackle the current housing crisis.

The NFB is urging decision makers to use their mapping tool to better understand the challenges posed by the housing crisis, rather than assuming it shows nearly a million homes can be delivered.

It points out that in Brighton only 12 out of 162 identified brownfield sites are publicly owned, equating to a minimum of 773 homes while in Sheffield, the local authority could deliver up to 6,310 homes on 81 publicly owned brownfield sites. A total of 300 sites have been identified in the region, which could see 22,194 new homes constructed.

The mapping tool also uses data from out of date local plans. For example, in Horley in Surrey, a car park owned by the local authority has the potential to deliver 30 homes, despite serving residents, high street shoppers, commuters and local businesses.

‘This tool is another example of the private sector rising to the housing challenge. It may not give the full brownfield story, but it serves as a reminder that local authorities must do more to enable development within our existing communities,’ said Richard Beresford, chief executive of the NFB.

According to Rico Wojtulewicz, senior policy advisor of the House Builders Association (HBA), pointed out that there are even more brownfield sites that have not been covered, as well as sites that are not deliverable.

‘Mapping them helps the entire housing supply chain understand how complex land ownership and sites allocations really are,’ he added.

Read more HERE

Global student housing investment volumes in particular have risen 87% in the last five years, says the study from international real estate firm Savills.

It explains that the maturity of the British and US markets, coupled with low provision yet high demand for purpose-built student accommodation (PBSA), mean that southern European cities offer the strongest opportunities for new investment in the sector over the coming year.

But global need for multi-family, co-living and retirement housing offers opportunities across all jurisdictions, and are particularly under invested asset classes in the UK, it also points out.

Indeed, the provision of PBSA is highest in the UK where 27% of all students can be accommodated, and lowest in southern Europe. In Italy, Europe’s fourth largest student market, the national provision rate is less than 5%.

Analysing city by city data from StudentMarketing, an independent provider of student housing and micro living research and data, Savills has identified that provision is lowest in Rome, with a student population of 220,500, but only 6,500 student beds, a provision rate of just 3%, followed by Porto at 3.5%, Florence at 3.8%, Barcelona at 4.9% and Madrid at 5.7%.

These cities therefore offer the best immediate opportunities for investors, says Savills, as many have strong international student populations, indicating a solid supply base, and high average PBSA rents.

‘Italy’s proving to be an attractive market for investors where supply is low and the existing quality of accommodation is dated,’ said Marcus Roberts, director of residential capital markets for Europe at Savills.

‘Demand is strong, but limited comparable product reflects the emerging nature of PBSA, and the market is not yet fully tested. Spanish and some Portuguese cities are also characterised by extremely low levels of supply against high demand and strong rental growth,’ he explained.

‘We’re seeing private equity investors particularly active at the moment in the Iberian market. In fact Spain has seen record investment volumes in PBSA in the past 12 months,’ he added.

According to Samuel Vetrak, chief executive officer of StudentMarketing, in terms of overall trends, student housing in Europe is widely considered as an established asset class with enough liquidity.

‘There is a growing number of investors, including foreign and institutional ones, that see investing in student housing as an ideal way to diversify their portfolio and get higher yield rates than in traditional asset classes,’ he said.

‘In addition, investors appreciate the fact that student housing is considered as a recession resilient asset class as the number of international students has grown constantly, even during the crisis a decade ago,’ he added.

Savills says PBSA saw another record year in 2017, with $17.5 billion invested globally, up 4% from $16.9 billion in 2016. The UK and Western Europe accounted for over half of this investment at 51% or $8.9 billion, a 35% increase from the $6.6 billion invested in 2016. The UK, Germany and Spain were the most active single country PBSA markets in Europe.

Savills also highlights the movement by some student housing operators into the multi-family and co-living sectors and the opportunities this opens up for investors looking to spread risk across several different asset types.

Multi-family investment across eight major European markets exceeded €27 billion last year, still a fraction of US volumes, but up 19% since 2013. Sweden, The Netherlands, Denmark and Germany have established institutional residential markets, offering the most liquid market conditions for trading.

‘As management quality has improved and operators have strengthened their brands, and with many markets under-supplied of professionally-managed private rental stock, providers such as The Fizz and Milestone are delivering a new product to satisfy demand,’ said Roberts.

‘In the UK, multi-family is still a young sector with total investment volumes at £2.6 billion in 2017, just 18% of Germany’s volumes but up 20% on 2016. Last year 70% of deals were forward funding and forward purchase deals. The focus on the development of new stock is likely to fuel future transaction activity,’ he added.

Read more HERE

Renting the house you live in has its advantages as it gives you greater freedom of movement and saves you other costs: insurance, service charge, deposit, mortgage interest, to name a few. Yet, for most people, renting privately is not really a matter of choice. It is the result of stagnant wages and the fact that house values rise much faster than the economy.

Britain is becoming a country of (reluctant) tenants. But the law does not keep the balance fairly between landlord’s interests and tenant’s rights.

English law on rental evictions does not protect households’ security of tenure. A recent report by campaign groups Just Fair and Generation Rent shows that a system that allows landlords to evict tenants without reason breaches international law. Yet this is permitted under Section 21 of the UK Housing Act 1988.

Poor housing proliferates

According to the government’s English Housing Survey, the private rental sector has the highest proportion – 38% – of homes with at least one indicator of poor housing such as mould or damp. More than one quarter (27%) of privately rented homes fail the decent home standard, compared to 20% in the case of owner-occupied homes and 13% in the social housing sector.

Many tenants have good reasons to complain about the state of their flat. But English law does not currently require all landlords to maintain a property in a standard that is fit for habitation. The Landlord and Tenant Act 1985 imposes obligations to repair on landlords but only if there is “disrepair” – damp, mould or asbestos not causing structural damage are not covered.

In this context, tenants are at risk of eviction if they take legal action because Section 21 of the Housing Act 1988 permits landlords to evict tenants with no fault and without giving a reason.

The National Audit Office watchdog has documented that the ending of private sector tenancies is the biggest single driver of statutory homelessness in England. Based on official data from the Ministry of Justice and the Ministry of Housing, Generation Rent has found a tight correlation between homelessness and Section 21 evictions: 92% in London and 88% outside of London.

Lessons from others

The lack of awareness and understanding of tenants’ personal circumstances is not unique to England. My own research in Spain on foreclosures and mortgage evictions and on rental evictions has shown similar patterns. If the English and the Spanish markets have something in common it is precisely the rise of renting as a form of tenure following rapidly growing prices, which makes home ownership unaffordable for most families.

Security of tenure and fair treatment when it comes to rental evictions are perfectly compatible with landlords’ right to private property. Law and practice in other places with longer traditions in the rented housing sector prove that things can be done differently if there is will for it.

Scotland, for example, distinguishes between “mandatory” and “discretionary” grounds of eviction. In discretionary cases, landlords must prove that relevant circumstances exist but the court will only grant recovery of possession orders if it considers it is reasonable to do so.

In San Francisco, one of the most expensive cities in the US, tenants that are evicted with no fault have a right to a relocation payment from the landlord.

South African courts usually urge public authorities to report on their capacity to provide alternative accommodation to those in need who would otherwise be rendered homeless by the eviction. Authorities are expected to determine occupants’ needs by engaging with them meaningfully regarding their circumstances. Where occupants cannot afford the available private housing and the eviction would lead to homelessness, the court makes the order contingent on public provision of alternative accommodation. If necessary, landlords are expected to wait until the authorities are able to provide a housing solution.

In the Netherlands and Germany, courts are entitled to take tenants’ personal circumstances into account to balance tenant interests with those of landlords when judging the fairness of the lease termination.

England must pay close attention because alternatives do exist. With renting in England a reality for the foreseeable future, no-fault evictions must end and best practice sought from places where renting is the norm and fairer systems are in place.

Read more HERE

A recent report from the Royal Institution of Chartered Surveyors (RICS) highlights just how much of an influence Carney’s remarks have had on consumers who were actively considering moving home last month, and on overall market expectations in the wake of further economic and political uncertainty. 

Unlike other house price indices, which generally rely on empirical data, the RICS monthly report is sentiment based, meaning that its member surveyors from across the country provide their views on a series of questions relating to what they have observed over the previous month in their area. 

Given that surveyors are a vital part of the property ecosystem – after all, if a property is purchased with any sort of mortgage, a surveyor’s valuation is required by the lender – RICS members are uniquely placed to provide insight into how the housing market is fairing from region to region.

Given the background then, this morning’s report makes for rather interesting reading. 

At a headline level, RICS suggests that new buyers are holding back on their purchases, due to Brexit uncertainties, leading to their indication that the number of properties sold over the next twelve months is likely to dip from the volume of transactions we’ve seen this year. 

However, fewer vendors listing their properties for sale in some regions has counter-balanced any drop off in buyer activity, meaning that prices in many areas remained flat last month, although there is significant variation across the UK, as has been the case for much of this year. 

As well as the ‘Brexit effect’ creating a climate of uncertainty, surveyors also suggest that the headline slow-down in purchase activity in September was caused by a combination of affordability constraints, together with the lack of available homes for sale as the average stock on estate agents’ books up and down the country has dropped again to near record low levels.  

This in addition to the  recent increase by the Bank of England in interest rates, has meant that many would-be movers have now adopted a ‘wait and see’ attitude. 

Simon Rubinsohn, RICS Chief Economist, commented” “There are a number of themes running through the comments of respondents this month, but uncertainty relating to Brexit negotiations is at the very top of the list followed by references to the confidential remarks made by the Bank of England Governor to the cabinet. 

“All of this is, not surprisingly, taking its toll on the sales market with the key activity indicator in the survey flat or slightly negative in all parts of the country apart from Northern Ireland and Wales.”

But despite the report’s rather negative overtones, it’s perhaps not all doom and gloom. As Brian Murphy, Head of Lending for Mortgage Advice Bureau highlights, there is a continued disparity across the UK which has been at play for most of 2018, where consumer confidence in bricks and mortar would appear to still be prevalent in many areas.  

He explained: “Whilst Mr Carney’s remarks last month were perhaps somewhat taken out of context – he was of course, asked to provide his views on a range of potential scenarios, not just ‘worst case’ – given the widespread coverage they received, RICS members appear to be suggesting that the impact in some areas of the country was noticeable.  

“However, other regions, such as Northern Ireland and Wales, have seen a buoyant market continue in September in terms of volumes, with values increasing, albeit modestly of course, in the West Midlands and Scotland.  

Brian continued: “Indeed, today’s report also suggests surveyor expectations are that, despite last month’s headlines, prices in most parts of the country will either remain at current levels or edge up slightly over the next year.”

So, what do those surveyors, who are actually at the coalface of the current market, think? It’s perhaps fair to say that there is a marked difference between regions in terms of sentiment. 

For example, in the North West, John Halman of Gascoigne Halman in Wilmslow records September as being “still a reasonable market, although very low levels of general activity”.  However, Adam Farnsworth of Berrys in Kettering is less optimistic, suggesting that in his locale within the East Midlands “uncertainty has crept in like a river fog in autumn”. 

He continued: “Sales of houses under £250,000 sell well, with increases in values. The mid-market appears flat, and the higher market subdued.”

In the West Midlands it would appear to be a different picture again, as Colin Townsend of John Goodwin in Malvern observed: “Though there is evidence that the market might be about to slow over concerns with the economy, Brexit and against rumours that parts of the UK housing market are struggling, September was another strong month.” 

But in the South East’s leafy commuter haven of Cobham, Anthony Webb of Trenchard Arlidge notes a very different environment, and suggested that “Brexit uncertainties compound excessive Stamp Duty and government interference in the property market”.  

His sentiments are echoed in the South West by fellow surveyor Simon Barker of Knight Frank LLP in Sherborne, who warned: “Brexit continues to cause angst amongst buyers and sellers alike. 

“I feel the next two months are pivotal in creating a positive market sentiment for 2019. A no-deal Brexit will be a disaster for the UK and the property market in my opinion.”

With further rounds of crunch Brexit negotiations next week, many consumers and industry professionals will be hopeful that the current status quo will improve once our way out of the EU is made clear – one way or the other. 

Read more HERE

In the third quarter of the year quarterly growth was 1.9% and over a three year period prices have increased by 17.4%, according to the index from international real estate firm Knight Frank.

The annual figure, up from the 9.4% recorded in the 12 months to June, marks the highest level of price growth in any major UK city tracked by Knight Frank over the same period.

The index report point out that central Edinburgh remains in high demand, aided by both the second hand and new build market and overall stock levels remain down which is starting to impact on sales volumes, slipping back across the market as a whole.

Globally, Edinburgh was ranked sixth in terms of price performance in the most recent Knight Frank prime global cities index, but Oliver Knight, research associate at Knight Frank, points out that it is important to view the strong rate of price growth seen over the last 12 months in context.

‘It follows nearly a decade of fairly subdued growth since the financial crisis. During this period, the market has had to adjust to changes to the tax landscape following the introduction of Land and Building Transaction Tax in 2015, as well as a greater degree of political uncertainty over that time,’ he said.

‘Over the last year however, values have been underpinned by an undersupply of new stock to the market. Our analysis of listings data from Rightmove shows the volume of homes being offered for sale remains suppressed. These more depleted stock levels are now starting to impact on sales volumes which have slipped back across the market as a whole,’ he explained.

‘However, this has disguised varying performance at different levels of the market,’ he said. Indeed, much of the decline is accounted for by a fall in activity for homes valued up to £200,000 over the year to July 2018. Sales above £500,000 by comparison were 8% higher year on year and currently stand at near record highs.

The report reveals that central Edinburgh remains in high demand, aided by both the second hand and new build market. Elsewhere, family homes in areas including Murrayfield, Morningside and Newington have been attracting interest.

Despite the positive sentiment surrounding the Edinburgh market, anecdotally there has been a slight cooling of demand of late, especially as the end date for Brexit nears, which could weigh on transaction volumes for the remainder of the year.

Agents note that uncertainty over Brexit is causing a degree of hesitancy among some prospective buyers. ‘The UK will leave the European Union in March 2019, but there remain a number of unknowns including what type of deal, if any, will be agreed. This lack of clarity could weigh on sentiment,’ Knight concluded.

Read more HERE

Would a scheme encouraging landlords to sell to private renters help solve the housing crisis?

Will Tanner, director of Onward, says YES.

Britain’s housing market has many flaws, but one of its most pernicious is the never-ending treadmill of private renting. The average renter in London today spends 40 per cent of their post-tax income on rent, compared to 15 per cent in the 1980s, and does so for much longer on insecure tenancies.

For people below the age of 45, homeownership has become an unattainable dream, renting the insecure reality. Indeed, the number of 35-44 year olds renting has tripled in two decades.

By encouraging landlords to sell to long-term tenants, ministers could solve two key problems: they would encourage more landlords to offer longer-term tenancies, and support more renters into ownership. We propose that the tax break is shared between landlord and tenant, so the landlord is incentivised to sell and the tenant gets a significant contribution to the deposit. This will help them get off the treadmill and onto the ladder. That can only be a good thing.

Dan Wilson Craw, policy and communications manager for Generation Rent, says NO.

This policy might boost the number of homeowners by allowing tenants to negotiate a lower price from their landlord. But it will do nothing for the majority who have no deposit saved up.

While it has been pitched as a way to incentivise longer tenancies, if it’s ultimately optional for the landlord, not all tenants will benefit. If we want to improve renting, we must require all landlords to provide greater security, so that all tenants can expect a long-term home.

Tenants also need protection if their home is sold to someone else. If your landlord were eager to sell, and you couldn’t buy, you’d face eviction with no ability to appeal. Tenants should therefore get compensation – to create an incentive to sell with a sitting tenant, and minimise hardship.

The danger with sharing out tax breaks is that it suddenly gives better-off tenants a vested interest in rising local house prices. This would reduce voter pressure for more homes to bring down rents for the rest of us.

Read more HERE

When the former City trader shows me around the renovated Victorian warehouse in Clerkenwell, everyone we pass seems pleased to see him – which strikes me as unusual for someone whose role resembles that of a landlord.

Franklin, who is the founder of Property Guardian Protection (PGP), works with developers to convert empty commercial buildings – such as warehouses, pubs, and office blocks – into cool places to live.

The occupants are called “guardians” rather than tenants – a term which has a celestial ring to it. By occupying these spaces, the guardians are protecting the disused buildings from squatters, while also saving the developers money in security costs. In return, the occupants pay less rent than the market rate in central London.

Originating in Amsterdam, the guardian game is a niche business within the property world. While some see it as akin to squatting, the trendy apartments and studios say otherwise.

The whitewashed walls, high ceilings, and sash windows of these rooms are the antithesis of the cramped cupboards you could expect to rent for the same price in Clerkenwell. On the top floor, Franklin shows me a spacious studio, which an artist is using as both her bedroom and workspace. Seeing half-complete sculptures dotted around the room, it’s clear that the guardians are giving these buildings a new lease of life.

People are becoming generation renters, and I think that’s really sad

Rather than rent in the typical sense, guardians pay a monthly licence fee (starting at £500), which includes utility bills, wifi and council tax. The properties are packed with communal spaces and basic facilities like washing machines, fridges, and cookers.

The downside, of course, is that once the owner of a building gets planning permission (which can sometimes take years), the guardians have one month to vacate the property.

Crisis-point

Founded by Franklin in 2016 during the ongoing housing crisis, PGP’s popularity is partly driven by the company giving young people a choice about where to live.

With 20 properties all around London, PGP is currently housing around 200 people, and most of them work in creative industries. Sky-high rents are pushing artists out of London, and yet Franklin has created a business to encourage them to stay in the city. There are now more than 500 people on the waiting list, including some celebrities; it’s fast becoming the Soho House of the co-living world.

Franklin is scathing about the state of the housing market. “People can’t afford to get onto the housing ladder because the targets to build new houses aren’t being reached, and the homes that are being built are not helping those at the lower end. People are becoming generation renters, and I think that’s really sad. Unless you’re funded by the Bank of Mum and Dad, you’ll find it difficult to save enough for a house while paying rent.”

While his company can’t directly fix the housing supply issues, he reckons that this model can help people get on the property ladder. He points out that if, say, a guardian is only paying £600 a month in rent through PGP, rather than £900 in the traditional rental market, they could eventually save enough money to buy their own place.

“I don’t want to see them in three years time, because hopefully by then, they’ll be homeowners.”

The Grenfell effect

PGP might only be two years old, but Franklin calls his company the “grown-up version” of property guardianship. “When I modelled this business, I quickly realised that it could be done better. There are lots of empty buildings, and the demand is there because people need to be housed cheaply in the capital.”

Franklin stresses the importance of compliance, particularly in light of the Grenfell Tower disaster. PGP spends between £30,000 and £150,000 on health and safety equipment, and installs communal showers and kitchens in every building – even if they are only occupied for a short time.

The company also aims to be transparent with the guardians, updating them on where the owners are in the planning stages. “We always tell the guardians what’s going on – we don’t want to promise them too much,” the founder says.

Trading places

Franklin, who was raised in a traditional Jewish household, spent 25 years rising through the finance ranks to become a successful trader, working for the likes of Goldman Sachs and Merrill Lynch.

It was the shift towards algorithm trading which prompted him to quit while he was ahead. “I don’t profess to be anything more than a momentum trader, but in the last five years we’ve seen algos take over, making people like me obsolete.”

That’s not to say he hasn’t been able to use his understanding of the trading world to build his business. “I’ve got a risk background, so I don’t mind taking on a building for a break-even point – because I’ll always bet on planners being slower than other people think.”

It’s often a case of weighing up whether it’s worth taking on a building (PGP would consider a lease of anything over five months), as well as how much the company should spend installing temporary features. “We keep the buildings on life support – we patch things up, rather than spending loads of money fixing the problem. But of course we don’t want the same problem to emerge next week – it’s a fine balancing act.”

At the moment, Franklin knows all the guardians by name, but the plan over the next few years is to find more buildings and create a community of more than 1,000 people.

For Franklin, who describes himself as a “frustrated creative”, it’s not just about giving young people somewhere to live, but supporting the arts as well. He certainly doesn’t fit into the unscrupulous stereotypes that are often associated with property executives – or traders for that matter.

Essentially, PGP is a mish-mash of the old and new – reviving London’s young communities while bringing life to relics of the past.

Read more HERE

Here’s what the English renting experts are debating:

Debate: Is the recent rule change for houses in multiple occupation (HMOs) fair on tenants?

YES – Dan Wilson Craw is the director at Generation Rent.

Many people can only afford to rent in a shared house. But some landlords exploit their desperation for a place to sleep by cramming dozens of people into houses that were built for families.

This means overcrowded, unsanitary homes with fire and electric hazards. But occupants are often too scared to raise concerns and get things fixed.

Licensing gives councils the ability to take action against bad landlords, and stop this race to the bottom.

Until now, relatively few properties have been covered by licensing schemes, so this expansion of the definition will bring more potentially criminal landlords under the radar.

They will either have to start providing homes fit for habitation or get out of the market. They can’t simply raise rents in response to new costs, because they’re already charging what people are prepared to pay.

It is essential that the government also improves protection from eviction to minimise disruption for tenants, and addresses the underlying shortage by investing in new homes for social rent.

NO – Carrie Kus is a director at the Residential Landlords Association.

Extending licences to more properties gives a false expectation to tenants that they guarantee it is safe and meets all the required standards.

Our own research at the Residential Landlords Association (RLA) has found that there is no clear correlation between licences and levels of enforcement action.

There are already substantial powers to regulate the sector, but without proper funding to kick-start greater levels of activity to find and root out criminal landlords who will never willingly come forward to be licensed, then things will not change. Bad landlords will not come forward to be licensed, and without a substantial increase in effective enforcement, licensing more properties will not affect the big changes that are needed.

We agree too with the MPs on the cross-party Housing Committee, who argued that much greater political leadership is needed in order to clamp down on the crooks who are undercutting the good landlords.

Read more HERE

Our guest blogger this week is Rob Gavin, Sales director at Aluminium Bending Specialists. Here to talk about how you can improve your home with new aluminium triple glazed windows.

Whether you’re looking to move, wanting to spruce up your home or you’re in a new house looking for that homely feel; new windows could be the way to go. They can be cost effective if you go about it in the right way which is a good thing for you. Especially with the uncertainty of Brexit looming over the UK at the moment. Not only will new windows give you the look you want, but they could improve your heating bills in the coming months, and keep the noise from the nearby road out of earshot. But how do you choose the right ones? Will they look good? And where should you start? Very good questions, which is why I’d like to explain how you can add value to your home with a window upgrade.

There are a number of factors you’ll need to look into when choosing new windows. For example, most houses come with double glazing as standard. It's effective, traps the heat well and looks good. So, it’s a rule of thumb that anything less than that would be a bad idea. However triple glazing has been around for a while now and while it didn’t get a lot of traction to begin with, it has quickly become a mainstream, popular choice for homeowners.

Triple glazing is crafted with three panes of glass instead of two. The cavities created between each pane are filled with harmless heavy gas like argon or krypton to create extra thermal efficiency. The efficiency rating used for windows is called U-Value, it measures how well the windows trap heat and keeps you warm on a Winter’s night. The lower the number the better the windows are at keeping in heat. Double glazing has a U-value of 1.6 while triple glazing is listed at 0.8. This goes to show that although it seems a small difference, the relative difference is vast. Put simply, triple glazing works well and will aid in keeping your home warm. This will, in turn, lower your heating bills and make your home a more desirable purchase when you come to sell it. 

In today’s age, everything is about style. And your home is no exception to this, you can increase the value of a house by following the trends and making sure you implement a look that will work for a long time. Now, most people will be thinking of brand new, white window frames. But for the foreseeable future aluminium windows look to be the forerunner. Their charcoal colour compliments your home by accentuating the contrast between brick and window. They’re becoming the norm as they sweep across the UK.  What’s more, they are a great investment; an aluminium window will typically last for 45 years due to the fact that they don’t degrade the same way that uPVC window frames do. They don’t rust either which means there is no risk or worry. But back to style; because aluminium windows can be made to look so thin while keeping their thermal efficiency, they enable a minimalist look that works for both modern and traditional houses. Once again, this will add value to your home because they will be a sought-after feature and if you are the only ones that don’t have them, you’ll be left in the dust. 

Okay so how do you start the process? A few easy steps to help you on your way:

·       Decide your budget

·       Choose the style – uPVC or aluminium

·       Do you want double or triple glazing?

·       What kind of shape so you need?

·       Call a local company to size up and quote – But look around at a few!!

Local authorities, planners and developers in the UK need to shift their focus to ‘right sizing’ by delivering better, diverse housing options that are accessible to everyone, regardless of age, a new report suggests.

This is because most older home owners don’t want to downsize but those on low and middle incomes are finding themselves trapped in homes which are no longer appropriate for them as they age.

The report, commissioned by the Greater Manchester Combined Authority and funded by the Centre for Ageing Better, looks at the types of houses older people live in across the UK, the sort of house moves they make, and the reasons why.

Despite common assumptions that most people want to downsize or enter specialist accommodation as they age, the research reveals that when it comes to choosing a home, older people are motivated by the same desires as other age groups. For example, wanting more space for guests, moving to a nicer area, and better access to green spaces.

For these reasons, the report calls for local authorities, planners and developers to shift their emphasis from downsizing to ‘right sizing, when it comes to planning housing provision for older people.

The research reveals that many over-50s cannot move home in the way that they would like, due to a lack of suitable housing options and inadequate provision of support and advice. Just 3.4% of people over the age of 50 move home each year, which is half as many moves compared to the rest of the population.

Just 7% of UK homes meet the most basic accessibility standards, yet many older people still refrain from moving until a sudden crisis, such as worsening health, eviction, or divorce, means they have to.

Although those with higher levels of wealth can more easily move, and those on the lowest incomes receive more support from social care providers, those on low and middle incomes can find themselves trapped in homes which are no longer appropriate for them as they age, the report says.

It also says that there is a lack of mainstream residential development that serves the needs of older people. The current focus on providing extra care housing and age restricted retirement living might be serving the needs of some particular groups, but these are not suitable for everyone and are not always embedded within existing communities where older people have established vital social networks.

It suggests that local plans should explore diverse, adaptable housing options within existing communities, focusing on the accessibility needs of people now and in the future.
In this way, older people, regardless of income, tenure or locality, will be more able to move into homes which suit their needs, meet their aspirations and improve their quality of life, without them becoming disconnected from their communities.

And it adds, that for people who want to move, but can’t, more options and support should be available to help them move if they want to.

‘In March this year, Greater Manchester was recognised by the World Health Organization as the UK’s first age friendly city region. This is great news, but more action is needed if we are to meet the challenges of a fast growing older population and make life better for us all as we age,’ said Andy Burnham, Mayor of Greater Manchester.

‘Thanks to devolution we have the opportunity to do things differently here, and I believe we can make Greater Manchester the best place in the UK to grow older. To succeed we need to make big changes at a strategic level, not just on housing, but also health, social care, transport and employment,’ he explained.

According to Rachael Docking, housing lead at the Centre for Ageing Better, it is often assumed that people want to down size to more manageable properties as they age. ‘In fact, people in later life have the same desires to improve quality of life as any of us,’ she said.

‘We need to move away from a focus on delivering homes for older people and deliver an adequate and diverse supply of adaptable, accessible housing that’s fit for people of all ages,’ she added.

Read more HERE

But there are considerable variations with a buyer able to get five flats in central Manchester for the price of one in London at £144,000 each compared to £788,000 in the capital city.

Overall, the UK is the 16th most expensive nation in the world for a central flat, with prices 52% above the global average with London the most expensive city, according to the research from comparison website Finder.

Hong Kong is the world’s priciest country for a central flat, costing £1.3 million on average, followed by Singapore at £781,000, Switzerland at £543,000, South Korea at £438,000 and Japan at £364,000.

After Hong Kong, London and Singapore, the most expensive cities in the world for urban flats are Beijing at £676,000, Zurich at £670,000 and Shanghai at £667,000.

The cheapest nation of the 91 countries with available data is Egypt where a two bedroom city centre flat only costs £27,000 on average. The cheapest city is Sumy in Ukraine, where a flat would cost £20,000.

‘These statistics show that prices for a city centre flat in the UK are generally comparable to our European and global counterparts. London is very much the exception to this rule though, with a central flat being out of reach for young British people trying to get a foot on the property ladder,’ said Jon Ostler, the site’s chief executive officer.

Read more HERE

Barclays is providing £875 million and Homes England, the Government's housing agency, will give £125 million.

The money will be used to help build thousands of new homes in England, to increase the pace and number of dwellings being built, Barclays said.

Loans ranging from £5 million to £100 million are being made available for developers and house builders, to get new schemes off the ground.

Barclays said funding is open to new and existing clients and will help diversify the housing market as, at present, nearly two-thirds of homes are built by just 10 companies.

The agreement with Barclays forms part of the Government's aim to achieve 300,000 new homes a year by the mid-2020s.

Some 217,000 new homes were built last year.

Read more HERE

The jump has been tributed to the effect of the V&A’s arrival on Tayside, as the figures were collated between April and June this year, as the museum neared completion.

Despite the rise, Dundee is still one of the cheapest places to buy, with an average price of £140,849 compared to £169,450 nationally.

The figures have been compiled by Aberdein Considine and Aberdeen and Grampian Chamber of Commerce in the sixth edition of Scotland’s Property Monitor, billed as “the country’s most comprehensive property market research.”

Alan Cumming, national estate agency director at Aberdein Considine, said: “Dundee has been undergoing a renaissance as this magnificent new landmark takes shape on the banks of the Tay.

“The city has a growing UK and global profile and with more than 500,000 people expected to visit over the next year, this is only going to grow.

“Dundee is one of the most affordable cities in the UK for first-time buyers, which makes it a popular choice for young house-hunters.

“We may well be at the beginning of a period of sustained price growth and I am incredibly optimistic about what the future holds for the city’s property market.”

Elsewhere, property prices are also on the up. The cost of a house in Angus and Fife rose by 1.5% to £161,304 and by 4.7% to £157,659 respectively.

Perth and Kinross was the only place in Tayside to see prices fall, as properties changed hands for 4.3% less than last year, although it was one of just five Scottish areas to record an increase in sales.

Despite this, it remains the most expensive place at £186,737 for the average home – the eighth most expensive in Scotland and around £17,000 higher than the national average.

Nationally, the report states the summer heatwave pushed the average Scottish property price to a record £169,450 during the second quarter of the year, up 4.7% on the same time last year and £175 higher than the previous record set in the third quarter of 2017.

It meant the market bounced back after a poor first quarter, affected by the “beast from the east” weather phenomenon.

Prices rose in all cities except Aberdeen, which is still suffering from the downturn in the oil industry.

Read more HERE

The growth of short-term rentals is closely tied to the broader financialisation of housing – that is, changes in the housing and financial markets, which turn housing into a commodity. These changes have opened the door for new investors to buy and develop more and more units, which in turn increases the scarcity of housing, prompts landlords to raise rent, threatens community bonds and stretches neighbourhood services.

The short-term rental sector is made up of two different business models. Serviced apartments are typically run by a single business, which offer a hotel experience for visitors in many city centres. Landlords can also rent out rooms or entire properties through sharing economy platforms such as Airbnb. By providing this service, Airbnb has given people a new means to earn money on their homes – sometimes without having to follow all the laws that apply to renting.

Growing trends

In 2016, the Association of Serviced Apartment Providers found that 86% of serviced apartment units in Manchester were occupied throughout the year. Alongside other regional cities such as Liverpool and Bristol, Manchester is a key target for serviced apartment operators.

To find out exactly how short-term rentals are affecting regional cities such as Manchester, I undertook research to collect data on 22 serviced apartment schemes, containing 1,198 units across central Manchester and neighbouring Salford during 2017. The average starting price for a night in a serviced apartment was £99, and owners made an average monthly income of £2,563 per unit. The financial rewards of investing in serviced apartments clearly outweigh the returns on long-term rentals for residents, which yield around £850 per month.

To find out about Airbnb, I used a 2016 survey by sector analysts AirDNA, which showed a total of 310 units advertised on Airbnb within central Manchester, and more than 1,500 across the city region. They noted a 70% annual growth in the sector from the previous year. The average price per night for an entire property is £143, with the highest being £1,251.

Across the city, my research identified 357 properties, which had been taken out of the long-term rental market up to 2016, with many more expected over coming years. Indeed, real estate company Colliers recently reported that in 2017 there were more than 4,000 units being used for short-term rentals, in a city struggling to build affordable housing.

The 2016 data from AirDNA revealed 177 hosts operating Airbnb properties in central Manchester: 59 owned multiple properties and accounted for 62% of all listed units. It is likely that many of these hosts are people who own multiple properties, or who set up small enterprise to use housing in central Manchester as a business.

And there are concerns that those properties taken out of the long-term rental market may not be operating with any licensing or planning permissions. A report by the All-Party Parliamentary Group for Tourism, Leisure and the Hospitality Industry – a group of MPs from Labour, Conservative and Liberal Democrat parties, who meet to discuss issues in the industry – raised concerns that sharing economy platforms do not check if hosts comply with gas and fire safety regulations before they let out their properties.

Neighbourhoods on the frontline

Serviced apartments, concentrated in the Northern Quarter. Jonathan Silver.

Short-term rentals are clustering at certain locations across Manchester, especially the popular Northern Quarter, which has more than 150 Airbnb units alongside over 500 serviced apartments. This rapid growth is putting strain on local services, small businesses and potentially residents, and there’s a real risk that the people who made the neighbourhood a popular destination for visitors will be pushed out, as the area becomes a magnet for “party lets”, with antisocial behaviour and littering.

With more than 650 potential homes in a relatively small neighbourhood used for the short-term rental market, it’s hardly surprising that the character of the neighbourhood is rapidly changing, while fears grow that it is losing its soul.

Some cities have already weathered the first wave of negative impacts from short-term rentals – and are beginning to fight back. New laws have been put in place, to limit long-term damage to communities. In Paris and London, authorities introduced a cap for short-term rentals to 90 days per year. This helped to ensure that housing built for residents is not taken out of long-term rental markets and used solely as a business asset by owners.

Barcelona has introduced a range of measures, including fines for companies that advertise unlicensed units. Across the world, relatively small “tourist taxes” of £1 per night now include serviced apartments. Proceeds are invested back into cities, to support local services and address the disruptive impacts on neighbourhood life.

So far, English regional cities have been pretty slow to act. Manchester City Council does not yet have a policy to address the sector. Liverpool City Council has been more proactive, pushing for national regulations to force landlords to register short-term rental properties. It has also lobbied central government for the ability to limit rentals to 90 days – a planning tool currently only available in London.

Unless coordinated action is taken at local and national levels, the short-term rental market will make the housing crisis, which is gaining pace in England’s regional cities, even worse. Local communities and politicians need to come together quickly, and learn from cities that have already developed effective policies – before some neighbourhoods change irrevocably.

Read more HERE

Although no one knows what will happen after Brexit, a number of people have turned to fear-mongering tactics in order to sell products and service to make money. They’ll tell you that unless you trust them and use their services you’ll be poor or you’ll end up on the streets. It can be a hard thing to differentiate between the facts and the marketing techniques. I’d like to explain what I think the outcome will be and how it could affect you. After a lot of research, I found a few interesting points.

2016 - A Recap

Brexit was announced in 2016 with dramatic effect. The British Pound took a hit and lost a little value, a new Prime Minister and the Bank cut rates.

In a little more detail; on the 23rd of June the public raced to the polling stations to make an all-important vote and decide if they want to play it safe or venture into the unknown. To many people’s surprise, they woke the next morning to find that 51.9% of the British population had won the vote with the decision to leave. A nation divided; Britain fell into dismay as everyone argued with one another. Even the (then) Prime Minister; David Cameron had almost nothing to say as he announced his resignation, leaving us without a leader. And as if that wasn't enough, the Pound lost value falling to a 30 year low.

A few weeks later the UK got a new Prime Minister which sparked, once again, more controversy. With all of this, the Bank Of England makes a decision to cut rates for the first time in around seven years. And then David Cameron decided to quit politics altogether. With a lot more happening after this it would seem that there has been a non-stop string of bad breaks for Britain and her people. A constant theme of upset, drama and dismay would make anyone feel that they're in for a bumpy ride.

The Future of The UK

As mentioned before; it is a hard thing to forecast what will happen to the UK after Brexit is finished, we could blossom and become a very successful country. Or we could fall into poverty and regret the whole thing.

Either way, at 11 pm on the 29th of March, the UK will have officially left the European Union (EU). I’d suggest that it’s unlikely the markets will have a sudden crash as long the Prime Minister manages to achieve a deal with the EU. After those initial few days, there should be some real change starting to happen. The EU will be drafting new laws and legislations that don't apply to Britain and this is likely to create a distinct difference between us and them. For example, the Manufacturing industry will probably to be the first to be affected. There will be a number of factories that may have moved to the continent and in addition to this producers could have shut down and disbanded altogether. The increase in costs will be a big strain on businesses in the import/export industry too. If a no-deal Brexit does occur there could be costs that add up to £4.5 billion in EU tariffs which is going to cripple the manufacturing industry as they try to decide whether they follow the UK specifications or conform to the EU standards.

This leads us on to what effect will there be on the housing market. Due to there being a supply chain builders won't be able to get the materials that are required to construct a home or block of flats.

Housing/Property

The housing market has been noticeably grinding to a halt as there is still uncertainty regarding the effect the Brexit deal (or no deal) will have on the price of housing. Prices in and around London have fallen 0.4% from January up until May. While there has been small growth in the East of England. In the South East, sales have plummeted. With this in mind, the British public has been trying to keep a close eye on house prices. Both homeowners and even those who can’t afford to buy have been fixated on what will happen next. You are probably one of those people reading this blog article. And the reason for the obsessions over house prices at this time? The answer is; Brexit - and the questions that surround it. What is Brexit going to do to house prices? And; how will the EU/UK negotiations affect the house prices?

Looking at how Brexit has affected house prices so far we can suggest that it all hangs on the negotiations and whether or not we get a ‘hard’ or ‘soft’ Brexit deal. As of now, it would appear the growth of house prices has slowed after the 2016 vote to leave the EU. However, there have been discrepancies between regions. Regardless the average house price had only grown 3% this year before May as opposed to a huge 8% the year before the referendum.

The biggest question on everyone's lips is; How, if at all can I make money from a property after Brexit? - Good question. The foreseeable answer would be… longevity. It would appear that both Brexiteers and remainers have a common opinion, the prices may fall a little right now but in the coming months after Brexit; they will be on the rise, growing constantly. This is especially true for big cities like London. House prices always rise for places like this simply due to the attention that they get. The number of people that have moved there for work, in fact; during 2017 London reached an all-time high of 8.8 million people living there, which goes to show that there is high demand. Arguably this means that the short-term drop in the market will allow for a reasonable price point on properties offering a great return in the coming years - this just takes a level-headed individual that is willing to make sure they don't panic and stick to their guns.

Finding the right property in the right city, for a good price is a tricky endeavour. But with the drop in price, it should become easier for everyone, even opening up opportunities to those who otherwise wouldn't be able to afford to invest. What's more; using the right tools will make a big difference. Finding the right property management company will have an indefinite impact. It will mean that you can get on with other duties or tasks without having to worry about the kind of tenant you have or maintaining the property.

This guest post was written by William Scott-Moncrieff of Ogilvy & Sneyd - property management specialists and estate agency.

Overall prices in the 57 countries covered by the Knight Frank index increased by 4.7% in the year to June 2018 and only seven saw prices fall year on year.

Growth was led by Malta where prices increased by 17%, followed by Hong Kong up by 16.9%, Latvia up 13.7%, Slovenia up 13.4%, Hungary up 12.2%, Ireland up 12%, Turkey up 10.5% and Mexico up 9.9%.

Prices fell by 4.5% in Ukraine, by 1.6% in Peru, by 1.3% in Saudi Arabia, by 0.7% in Brazil, by 0.4% in Italy, by 0.3% in Finland, by 0.2% in Israel and were flat in Sweden and Morocco while prices increased by just 0.8% in Greece.

Kate Everett-Allen, residential research partner at Knight Frank, pointed out that cities in central and Eastern European countries are performing strongly and all eyes are on Hong Kong, Singapore, and New Zealand where new property regulations have been introduced in the last three months and where prices increased by 16%, 9% and 7% respectively.

She also pointed out that only 12% of countries and territories registered a decline in prices in annual terms and no market has recorded a double digit decline in house prices over the last six quarters.

‘Five years ago, 30% of countries were recording a drop in house prices, and ten years ago, in the wake of the financial crisis, the figure was as high as 70%. Yet despite this improving scenario, at 4.7% the index has recorded its slowest rate of annual growth since the third quarter of 2016,’ she said.

‘Our analysis confirms that whilst fewer countries and territories are seeing a decline in house prices, where prices are rising, they are rising at a more moderate pace. The rising cost of finance, an uncertain political and economic climate and currency instability in some markets is likely to be tempering demand,’ she explained.

‘Hong Kong acts a case in point. A city which has led our rankings for price growth on ten occasions since 2009, is expected to cool in the coming months as a result of rising interest rates. Along with Singapore and New Zealand, Hong Kong has also seen new property market regulations introduced in the last three months,’ she added.

At the same time central and Eastern Europe is emerging as a region of strong growth. Latvia, Slovenia and Hungary all saw prices accelerate by between 12% and 14% over the year to June 2018 and the region as a whole registered average growth of 8% compared with 5.1% for the rest of Europe.

‘Strengthening economies, improving employment and the wider availability of low rate mortgages are behind the region’s strong performance. Turkey’s travails mean that although prices are rising at an annual rate of 11%, according to the latest data from the Central Bank of the Republic of Turkey, when inflation of 16% plus is factored in, prices in real terms are now falling,’ said Everett-Allen.

‘With the 10 year anniversary of the collapse of Lehman Brothers approaching on 15 September, a brief look at house prices over this period, where data permits, shows mainstream house prices in 12 of the 57 countries are still below their third quarter 2008 level, including those in Spain, Ireland, Italy, Greece and Russia,’ she concluded.

Read more HERE

Against the backdrop of the UK’s severe housing shortage, the government’s plan offers a welcome injection of funds to a previously under-resourced sector. Community land trusts, for example, have provided nearly 1,000 homes for urban and rural communities to date, with limited access to public funds. But there’s an apparent oversight in the strategy, which could undermine the fund before it even begins to take effect.

While announcing the new community housing fund, the government also pledged that any new funding scheme will prohibit spending on the “unjustified use” of leaseholds on new houses, building on recent reforms that seek to curb the use of leaseholds and minimise overcharging by freeholders. Leaseholders typically own a property but not the land on which it is built, which is owned by the freeholder who charges ground rents and management costs. Recent scandals have revealed significant and unreasonable charges imposed on leaseholders, which is why the government wishes to restrict the use of leaseholds.

Many community-led housing groups sell affordable homes on a leasehold basis, so that they can maintain strong and meaningful ties with the residents. This means they can respond to local needs and ensure that housing remains affordable for locals, by protecting it from rent hikes and property speculation. Retaining the freehold means community organisations can set restrictions on rent and resale prices, in order to ensure that housing remains affordable.

So, preventing spending on leasehold-based initiatives could undermine community-led housing groups, not to mention the effectiveness of the new community housing fund.

Affordable housing

Community land trusts, co-housing groups, housing co-operatives and community-based registered providers are usually started and managed by local community members. They typically provide affordable housing by means of specific ownership and tenancy arrangements. Developing and protecting affordable housing from private sale or speculation is often the main reason these groups form.

n many cases, homes are delivered in places that commercial speculative house builders or large housing associations are either unable or unwilling to develop. The community-led approach is proven to galvanise local support for housing, overcoming potential objections to new development by giving locals power over the process through democratic governance structures and community-led planning processes.

But in England the community-led housing sector remains very small compared to many countries in Europe and the United States, delivering an estimated 400 units per year. In the United States, there are around 37,000 units by community land trusts alone. The ring-fenced community housing fund represents the first substantial investment in the sector for many years. It should speed up the delivery of community-led housing in urban and rural areas, help the sector to grow and ensure that communities are able to access support and finance to develop affordable housing schemes that meet their local needs and preferences.

But the proposed ban on leasehold housing development – as well as the government’s ongoing efforts to make it easier for existing leaseholders to buy out their freeholds – could undermine these good intentions. That said, reform is needed to tackle bad practice in the private sector, including escalating ground rents and unreasonable management charges. But a blanket ban on leasehold development – which does not exempt community housing organisations, in spite of long running campaigns – will have a negative impact on current and future community-led housing schemes.

Under control

Previous studies have shown that community-led groups often form and develop their organisations with the primary aim of providing affordable housing, so ground rents or management charges are usually set in fair ways, designed to ensure their housing remains affordable. Taking away the means to influence the cost and use of community-owned property could stymie such organisations before they get going.

The National Community Land Trust Network has called for community-led housing groups to be exempt from the ban on leasehold homes – but so far their requests have gone unanswered. The dedicated community housing fund provides significant funding, which could help the community-led housing sector grow. But the government must ensure that the law allows these groups to deliver genuinely affordable homes.

The article was originally published on The Conversation

Big Four accountancy firm KPMG has projected that property prices in the capital will continue to fall until 2021 in a report out today that suggests the UK might be entering “a new normal” of more modest growth.

According to KPMG’s UK quarterly economic outlook report, house price increases would be slower in almost every region over the next five years than in 2017, reaching their lowest annualised levels in roughly a decade.

The only area which boasts projected growth is Scotland, where increasing investment and relatively modest valuations have bolstered house price growth.

Yael Selfin, chief economist at KPMG UK, told City A.M.: “The reality is that fewer first-time buyers can now afford a property in London, and that is creating a definite downward pressure on the market.”

Selfin added: “It’s going to be a very slow adjustment, and even with a mild decline in house prices in London, it will take time to go back to what was the historic average.”

Recent Lonres research showed that expensive homes on the outskirts of central London have suffered some of the most significant price drops over the last 12 months, as buyers and sellers stay put amid growing political uncertainty.

Last week Nationwide’s house price index found that house price growth had continued to slow over the summer, with the bank’s chief economist Robert Gardner saying that “subdued economic activity and ongoing pressure on household budgets” was likely to fuel a continue drop.

In July one of KPMG’s rival accountancy firms, PwC, also predicted that London house prices decline would persist into 2019, falling as much as two per cent this year despite an expected rise in every other region of the UK.

Read more here

While it can be difficult to gather the necessary knowledge to future proof your home, it can be done with research and planning. Knowing what the future holds is an impossible task, there are too many variables to rely on a prediction; anything can change at any given time. And so many people end up doing something that isn’t required in the end. There were cases of people rushing to build bunkers for the end of the world - and how many time has that been predicted?

Looking ahead can be a chore for some but it is worth it. Taking into consideration the trends today and comparing them to the past is handy. Take the weather for example. Over the past few years the weather has been improving, it's getting hotter in summer, there’s a lot more sun. And we’re loving it. But if we follow this trajectory, it will be getting hotter over the coming years. And we British, well we aren’t great with the heat at times. So with this, my first suggestion would be to get some sort of Air Conditioning. Not only will it benefit you in the long run by making sure you can deal with the summer heat waves, but it will add value to your house too. So if you ever want to sell, you can get a little extra for that. Sometimes it's cheaper to get an industrial style package, in which you can get effective units outside with ducts that run all through your home. However, if you only want to do add Air Con to one room you can get single units that just attach to an exterior wall.

As mentioned the UK is getting hotter. This is obvious when you look back on the data and you can see from the image below that the hottest temperatures recorded in the UK are catching up with the rest of the world.

Although you would expect Air Con to drain energy and waste money, it’s very easy (on some brands) to set up an automated service. Whether that’s to turn off at a certain time when you leave the house for work, and then turn back on when your home, or too cool your house down if it gets up to a certain temperature at night. You're able to conserve energy and maintain a reasonable electric bill. This type of thing is very achievable if you start to integrate a ‘smart home’ theme into your home too. These are great for a number of reasons but many overlook the effect on the elderly. They can use one remote to change anything, they don’t need to get up - which is fantastic for those with mobility impairments. 

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Contributor: Charlie Worrall

Company: Lee Jackson Air Conditioning Ltd

Website:https://www.leejacksonac.co.uk/

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Expansion in the sector waned to a three-month low, with IHS Markit's purchasing managers' index (PMI) today retreating to a reading of 52.9 points, from a strong 14-month peak in July of 55.8.

While the reading remained above the 50 mark which indicates the sector is still growing, it came in well below the 55 reading expected by economists.

The expansion was the weakest since March, with reports that "Brexit-related uncertainty continued to hold back investment spending", the report said.

"Cracks in the construction sector’s masonry" are beginning to show, according to Duncan Brock, group director at the Chartered Institute of Procurement and Supply, which sponsors the survey of more than 170 large firms.

A dearth of larger infrastructure projects pushed the civil engineering sector into contractionary territory for the first time in five months.

"Levels of new work held moderately steady overall, but with any significant growth held back by Brexit uncertainty," said Brock.

However, Max Jones, global corporates relationship director for construction at Lloyds Bank Commercial Banking, cautioned that a fairly healthy pipeline of large infrastructure projects will give some support to builders – despite last week's announcement that Crossrail is behind schedule.

"Mega-projects like Heathrow, Hinkley Point and HS2 continue to offer quality work for firms right down the supply chain," he said.

Employment growth in the sector continued, remaining near its 30-month high hit in July, indicating that skills shortages may also be holding back activity.

Low stock levels were also reported to have impacted delivery times for construction products and materials, another dampener on supply. Indeed, supplier performance deteriorated at the worst pace in almost three-and-a-half years.

Read more Here

Sadiq Khan has confirmed A2Dominion and Catalyst as new strategic partners with City Hall and a total of £288 million to deliver almost 5,000 additional new affordable homes.

The additional allocations are from the £1.67 billion Sadiq secured from Government for London in the Spring Statement, and will go towards his target to start 116,000 affordable homes by March 2022.

All of the 4,705 new affordable homes are due to start before March 2022, with 3,250 based on social rent levels and 1,449 London Living Rent or London Shared Ownership.

A2Dominion now has an overall starts target of 2,184 affordable homes by March 2022. Catalyst now has an overall starts target of 1,671 affordable homes by March 2022.

Alongside these new Strategic Partners the Mayor has confirmed additional allocations for two existing Strategic Partners, L&Q and Optivo. All of these are in addition to previously confirmed allocations.

These allocations are being confirmed ahead of the initial bidding deadline of 30 September. Additional allocations will be confirmed after that date and it is not too late for new proposals to be submitted to the GLA.

The strategic partnerships offer flexible funding conditions to housing associations that are willing to build at least 60 per cent affordable homes on new developments. A2Dominion and Catalyst join seven other strategic partnerships, formed in response to the Mayor’s first call for bids to the record breaking £4.82 billion affordable homes fund he secured from the Government.

The new partnerships bring City Hall’s strategic partners to nine – Clarion, Hyde, L&Q, Network, Notting Hill Genesis, Optivo, Peabody, A2Dominion and Catalyst.

All homes will be built to the highest standards and expected to meet the design and sustainability standards set out in the London Plan. Like all new buildings in London, they must meet stringent safety standards set by Government.

Measures include means of warning and escape, sprinklers, fire detection and fire alarm systems. The Mayor also expects all partners to deliver a high standard of housing management and resident services.

‘Thousands of Londoners are in desperate need of good quality, genuinely affordable homes, and it’s fantastic the Mayor is now able to confirm allocations to deliver almost 5,000 more, including through two new strategic partners,’ said James Murray, Deputy Mayor for housing and residential development.

‘Crucially, well over half of these homes will be based on social rent levels. Tackling the capital’s housing crisis is one of the Mayor’s top priorities, and he will continue to use all the powers and funding at his disposal to ensure that every Londoner has a place to call home that they can afford. But he can only go so far without the Government stepping up – it is crucial that Ministers give councils and City Hall the resources and powers we need for a step change in the number of affordable homes we can build,’ he added.

Read more HERE

Countrywide led the market’s fallers in early morning trading, with shares dropping to 13.96p, having fallen dramatically from their 130p value one year ago.

However, under-fire chairman Peter Long will be breathing a sigh of relief after the rescue bid received a 98 per cent approval from shareholders.

Today's fundraiser vote comes after a tricky 12 months for the beleaguered estate agent, which has issued two profit warnings in the last year in the wake of growing competition from online entrants to the estate agency market, such as Zoopla and Purplebricks.

Laith Khalaf, senior analyst at Hargreaves Lansdown, said: "Countrywide is back from the brink thanks to a shareholder bailout, though the estate agent is still fighting an uphill battle on a rather slippery slope.

"The injection of £129 million of cash will keep the wheels turning for now, but that money is being used to pay down debt rather than to fund growth. In other words, this cash is a lifeline rather than a springboard."

Countrywide, which owns brands including Bairstow Eves and Gasgoigne Pees, saw its shares tumble more than 60 per cent after calling for the emergency cash fundraiser earlier this month.

However, having raised the £140m pot from investors last week and received shareholder approval today, Countrywide will now be undergoing plans to cut its debt by at least half.

The UK's largest independent estate agent has also been embroiled in a pay row this month, having drawn anger from investors over a new incentive scheme which would mean cash payouts of over £20m for the beleaguered firm’s top bosses, including Long.

Read more here 

Despite rising demand, housing levels in Britain’s private rented sector are dwindling, highlighting the need for more investment in purpose-built rental property for the country’s growing number of tenants.

The gap between supply and demand levels of UK rental property continues to widen.

Close to 4,000 traditional buy-to-let rental properties are being sold in the UK each month, according to the latest report from the Ministry of Housing. In total, supply fell by 46,000 properties in 2017, the first recorded decline in rental homes in the country for 18 years.

The reduction in the availability of buy-to-let homes, often older properties on the outskirts of city centres originally intended for owner-occupiers, comes at a time when private landlords are being faced with increasing costs. Two years ago, a series of new tax measures, including a 3% rise in stamp duty on buy-to-let purchases, came into effect, decreasing profit levels.

As a result, it’s prompted many landlords to leave the market. Recent figures from UK Finance highlight a 19% fall in new mortgages approved for buy-to-let homes in the UK.

These findings back up those published earlier in August 2018 from the Royal Institute of Chartered Surveyors, who believe that this falling supply at a time when the demand for rental accommodation continues to rise will drive rental prices up 15% by 2023.

Increased taxation aims to shift the focus away from the outdated buy-to-let sector and grow investment in the purpose-built rental sector. These homes, located in prime city centre locations with the best facilities, are the properties that modern tenants will pay premiums to access.

Read more HERE

Melbury House and Hillview House are situated next to each other in the prime location of Wimbledon, London. “Robert Holmes are proud to introduce two elegant, newly built and detached five bedroom family homes, due for completion later this year, please register your interest for early viewing. In a prime location of Wimbledon, each home offers open plan, contemporary accommodation of approximately 3,094 sq ft (287 sqm), along with precious off-street parking and good sized secluded landscaped gardens. The houses, both inside and out, have been meticulously designed, providing attention to detail. Price on Application ”

Local area information:

Wimbledon town, mainline station, district line tube and all its amenities are only 1 miles away. South Wimbledon Northern Line is 0.8 miles way which services central London. In the Village itself are the smaller fashionable boutiques, shops, restaurants, pubs, wine bars and pavement cafes, whilst Wimbledon Town, just down the hill offers not only equally excellent shopping facilities but also has a number of superstores and the Centre Court shopping mall just beside Wimbledon Station. The New Wimbledon Theatre has a year round programme of live entertainment – as does the Polka Children’s Theatre – and there are two cinemas – one being a multiplex. For the music lover Wimbledon also has its own Symphony Orchestra and Choral Society.

The A3 is easily accessible with its direct route to central London and connection to the M25 network for both Heathrow and Gatwick Airports.

There are many good schools in the area both in the private and state sector, including Holy Trinity CoE School, Pelham Primary School, The Priory CoE School, Kings College School, Wimbledon High and The Study.

Recreation activities in Wimbledon include several theatres, 2 riding stables, multiple golf courses within a 3 mile radius, tennis and fitness clubs including Wimbledon Leisure Centre and Wimbledon Common itself consisting of 1200 acres.

Unperturbed by recent regulatory and tax changes, 18% of landlords said they would expect to remain a landlord indefinitely and 19% of landlords with four properties or more said the same.

This is the same across the age groups with one in 10 landlords aged 18 to 34 intending to continue indefinitely, rising to 17% of those aged 35 to 54 and 20% of those aged 55 and over, according to the latest sentiment research from Foundation Home Loans.

At a regional level, some 24% of landlords in the East of England, more than any other region, said they had no plans to leave the market, a sign of the draw of rental property in the commuter belt. On the flip side, 6% of all landlords questioned said they only intended to remain a landlord for the next one to two years.

What’s more, today’s portfolio landlords expect to stay invested in the market for an average of 15 years, compared to 10 years for non-portfolio landlords.

The research also found that 20% portfolio landlords have been a landlord for 16 to 20 years, showing that, with enough time to develop experience, monitor the value of properties and even make renovations to their offerings, the buy to let market can prove worthwhile for this group especially.

‘There have been ripples of concern that a mass exodus of landlords is expected, and certainly the changes introduced are a handful to deal with if not addressed in the right way,’ said Jeff Knight, marketing director of Foundation Home Loans.

‘But this is clearly an exaggerated view of the market. With so much interest in investing in the long term, it is therefore imperative that newer landlords are sufficiently supported to avoid any knee-jerk exits,’ he explained.

‘This is particularly the case for portfolio landlords as diversification is key to maintaining cash flow. Seeking the help of a financial adviser will help landlords navigate these hurdles, professionalise their approach and ultimately ensure they can remain in the market,’ he added.

More research highlights the growth of Manchester’s property market, with no other city matching the levels of capital appreciation investors are achieving in the north-west.

Yet another piece of recently published market analysis states that Manchester is the strongest UK city for property investment.

The city once again tops Hometrack’s index of property prices in the country’s 20 largest cities. In the 12 months to the end of June 2018, average values in Manchester have increased 7.4%.

On a national level, average prices in the UK rose 4.6% during this time. However, growth in London was among the lowest, with prices rising marginally by just 0.7%.

Performance in Manchester is being underpinned by a property market that simply cannot keep pace with demand from a fast-expanding population. Commenting on the Hometrack index Kevin Roberts, Director of the Legal and General Mortgage Club, said that a “boost to housing supply remains critical and it’s essential that the government continues to focus on meeting the (UK-wide) target of 300,000 new homes a year”.

Earlier in July 2018, Hometrack pinpointed Manchester as being home to the UK’s fastest rising property prices. Crucially, they also pointed to a similar pattern of growth between 2002 and 2005, at a time when London prices were slowing, where Manchester and Birmingham saw the largest increases in real estate values.

Hometrack believes that due to surging population numbers and the subsequent demand for property, a similar period of growth could once again take hold in Manchester; one in which investors could expect to see as much as 25% capital appreciation in the next three years alone.

Read more here 

Your home needs to adapt well to changing needs in the future if you want to save yourself thousands of pounds renovating every few years. There are many influential factors but a key one is technology, which is developing at frightening speed to provide homes that are more eco-friendly, more affordable and enjoyable to live in. Environmental aspects are another, but if you are to add value and entice buyers in decades to come, ‘future proofing’ is vital.

As the managing director of a property company, I have to make sure we stay up to date with all the latest gadgets, government legislation and so on whilst ensuring our homes are easily adaptable. Here are a few steps we’ve taken at Meyer Homes to future-proof two of our newest developments, Bishops Gate in Fulham and Gabriel Square in St Albans, that you could adapt your home to make sure it doesn’t date and struggle to sell.

ELECTRIC CAR CHARGERS

Electric charging points are fast becoming a key requirement for property buyers, and with the government banning all UK petrol and diesel cars from 2040, this demand is only going to grow. Some cities have already announced their own plans to create zero emission zones in the near future. This is why we have installed electric car chargers for every parking space at Bishops Gate and a quarter of our homes in St Albans.

CABLE INFRASTRUCTURE

Connectivity plays a vital role when influencing the living space of a home. James Moody, managing director of Meyer Homes, on how to ensure your home retains its value for years to come power and performance. Control 4 platforms are ideal so that buyers can connect and manage all devices in their home from one place. It’s also worth installing all-in-one control panels on each wall in key rooms.

SMART HOME TECHNOLOGY

From multi-room music, lighting and alarm systems to sprinklers and heating, there is a lot one can do with smart home installations now. Offering such technology can seriously impress future buyers. However, all the apps and settings you need to make them work and for them to sync well together can be stressful and complicated. So it makes sense to also have a system where you can control everything from one place to maximise power and performance. Control 4 platforms are ideal so that buyers can connect and manage all devices in their home from one place. It’s also worth installing all-in-one control panels on each wall in key rooms.

ALLOW FOR SPACE

It isn’t all about the master bedroom anymore. Key living spaces are much bigger than they used to be. More people are entertaining at home, which has seen the dining room make a comeback in affluent households, as well as separate catering kitchens. Living rooms have also become less cluttered and more open plan to make room for daily yoga practice, games consoles that require people to dance or jump around the room and home cinema systems. A 25” television either isn’t considered big these days, with 85” screens common along with surround sound hardware.

PROVIDE FLEXIBLE ACCOMMODATION

People are living much longer these days, which means multi-generational living is on the rise. Homes need to become more accessible to accommodate the needs of disabled and elderly buyers. This makes flexible accommodation highly sought-after, so always think about how the space can be used now and for decades to come. To make a property wheelchair adaptable, think about creating wider bathrooms, turning circle areas, and open kitchens without encumbrances like islands. Downsizers, generally older people moving from bigger properties to smaller ones, are a growing presence on the property market. They often look for no-fuss lateral apartments, with lifts and porters as an added bonus. If you live in a multi-level property, internal lifts to all floors are also seen as a useful addition.

Edited by Melissa York for https://www.cityam.com/

Edinburgh's office investment market outperformed other UK regions in the second quarter of the year, according to latest research.

From a total of £500m invested across nine regional cities, Edinburgh attracted £124m, the highest volume outside of London - finds the latest Big Nine report from real estate consultancy GVA . This represents just under a quarter of all office investment activity in the UK regions from April to June this year.

The report measures quarterly investment and letting activity across Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, Manchester and Newcastle.

“Sentiment in Edinburgh has been strong for some time and the latest figures only underline the confidence in the market," said Stuart Agnew, GVA's senior director in investment. "Both domestic and international investors are interested in good quality stock with excellent liquidity and rental growth prospects - and Edinburgh is well positioned to meet those needs.”

Activity in the city was bolstered by the two largest deals of the quarter outside London, which saw MAS Real Estate purchase New Uberior House for £71m and Chris Stewart Group sell The Mint Building to Hines for £53m. Pricing on The Mint reached £800 per sq ft, a record for the city and reflective of the scarcity of quality stock in the market.

"The lack of development and supply is pressuring yields," GVA said. "Prime city centre yields in Edinburgh have sharpened to 4.75 per cent from 5 per cent in the previous quarter, though this is still in line with peak levels in 2007. Investment volumes in the capital are more than double the ten-year quarterly average of £59m."

GVA said significant deals were in the pipeline for Edinburgh in the next quarter, with 40 Torphichen Street and Blenheim House both under offer, totalling around £50m in value. With an anticipated strong final quarter, it is likely that total Investment volumes could reach in excess of £350m, GVA said.

Read more here: https://www.insider.co.uk/news/edinburgh-office-investment-outperforms-gva-13055230

High Command, Shad Thames, £9.5m

In fact, the entire four storey property has been set up to frame the view. A huge open plan dining room and lounge greets visitors on arrival and there are no fewer than five terraces from which to enjoy an eyeful of the most famous bridge on the globe.

This is the first time this penthouse has been on the market in 35 years as it’s been home to the property developer who converted the historic warehouse it sits atop into apartments. After finishing the scheme, he kept the jewel in the crown for himself.

Formerly the old Courage Brewery site located directly next door to Tower Bridge on the South Bank, it is now Anchor Brewhouse and this home sits between the seventh and tenth floors. A 24-hour porterage, complete with slick dark tiles and tinkling water features, greets residents on arrival. The lucky owner also gets non-view-related perks, such as four secure allocated parking spaces and an internal private lift between floors.

There’s over 4,280sqft of space including an eighth floor master bedroom suite, with an ensuite and a walk-in dressing room, plus a rotunda on the top floors that makes for a stunning sanctuary, whether you use it as a library (as it is currently), art gallery or wine cellar.

It’s been on the market with estate agent Cluttons for the last 18 months and the price has been reduced from £12.5m. As it hasn’t had an update in over three decades, Cluttons has hired local architect Tim Flynn to draw up some ideas for how the space could be opened up, scattering sketches throughout the property for prospective buyers.

James Hyman, head of residential at Cluttons, says he sees the penthouse going to a wealthy UK-based buyer who has the time to spread some tender-loving care.

“These are a rarity on the market because a lot of people see properties like these as a long term asset and hold on to them,” says Hyman. At £1,800psqft, he says it’s also around £800psqft better value than comparable new penthouses in the area.

Call Cluttons Tower Bridge on 020 7407 3669

Read more: http://www.cityam.com/289875/property-week-four-storey-penthouse-next-door-tower-bridge

Paul Smith, CEO of Spicerhaart, said of the rate hike: “It will have minimal impact – 0.75% remains a historically very low base rate and this small increase is unlikely to affect the majority of borrowers.

“It is even more unlikely to make buyers think twice about buying property, given the cost of renting and the UK’s commitment to investing in bricks and mortar.”

Guy Gittins, managing director of Chestertons, said that the impact would be “modest” and unlikely to alter anyone’s decision to buy.

He said that it might instead inject a little more urgency into moving so that buyers could secure a mortgage “while lending remains at incredibly cheap rates”.

Rob Clifford, group commercial director at SDL, which operates lettings, property management and mortgages businesses, said: The cost of borrowing remains exceedingly low and is still amongst the cheapest since records began.

“Hopefully, industry commentary can now switch to the real barriers that are currently impeding a free-flowing housing market – and that is supply and demand and the level of initial deposit required.”

Ishaan Malhi, CEO of online mortgage broker Trussle, said that owners on variable rate deals should switch if they could.

He said that the average home owner on a variable rate with £200,000 to pay off on their mortgage would see repayments rise by £300 over the course of a year.

Russell Quirk of Emoov was among those agents sounding a worried note, saying: “Mark Carney really is pulling the rug from beneath the nation’s aspiring and existing home owners. The Government’s failure to build any meaningful level of housing stock is pushing prices ever higher and now the Bank of England has hit them with an increase in interest rates that will see mortgage payments increase, while resulting in a pitiful return on their savings.

“Although today’s hike will be digestible for many, it should act as a warning shot for UK home buyers and home owners. Yes, the cost of borrowing remains low, but interest rates are now at their highest in a decade and could continue to snowball, putting many in a perilous position when they come to buy or remortgage.

“Those looking to buy should be strongly advised against the temptation of borrowing beyond their means, as well as the importance of securing a fixed rate mortgage.”

Read more: http://www.propertyindustryeye.com/rate-rise-likely-to-have-minimal-impact-on-housing-market-say-agents/

In cities the growth in prime property prices is led by Edinburgh, up 7.5% and Glasgow up 2.5%, according to the prime regional index from real estate firm Savills. In England prime prices have increased by 2.6% in the Midlands and by 1.8% in the North.

This compares with a fall of 4% in Cambridge and a decline of 3.2% in London suburbs. Prices also fell in Bath, Winchester and Bristol. Indeed, it is markets furthers from London that have seen their values remain stable over the last 12 months.

An analysis of the figures shows that the lower price bands are more resilient. In the £500,000 to £1 million sector only London and its suburbs have seen prices fall, down 3.5% and 1.1% respectively.

Homes in the £1 million to £2 million bracket have seen prices fall in all regions apart from the Midlands, the North of England and Scotland while at £2 million and above prices are down 6.2% in the London suburbs.

The report suggest that sellers need to make price adjustments to secure sales. It also points out that buyer caution in the face of increased stamp duty, potential interest rate rises and political and economic uncertainty, means sellers need to price correctly.

‘Properties will sell when they are priced for current market conditions. Generating competition is key to achieving a successful sale, and around a third of Savills regional market sales receive offers from three or more bidding parties. Still, sellers need to remain pragmatic and flexible on pricing, and we’ve seen a slight uptick in the number of sellers accepting price adjustments in order to achieve a sale,’ said Frances Clacy, Savills research analyst.

The research reveals that there are currently an average of around 1.14 price adjustments per sale across the prime regional markets, marginally higher than in 2017 when the figure stood at 1.1. In London, the equivalent figures are 1.42 adjustments per sale so far this year, compared to 1.32 last year.

‘We expect a continuation of the current cautious market conditions over the next year to 18 months, until there is greater clarity over the Brexit deal and the pace of interest rate rises,’ the report concluded.

Read more here:  

https://www.propertywire.com/news/uk/scotland-midlands-lead-prime-property-growth-britain-year-year/

A newly published Government report showed there were 4,276 vacant homes in the city, despite a national housing crisis and record levels of homelessness in the country.

The Ministry of Housing, Communities and Local Government report said roughly one in every 30 houses in the city was vacant at the last count, which took place in October 2017.

It also said 889 of these were classed as long-term vacancies, meaning they had been left empty for more than six months.

News of the figures has provoked anger and frustration from those currently sleeping rough in the city.

Emma, 26, from Brighton, who is currently homeless, said: “It’s very bad, there are so many empty homes around here.

“When you’ve got nowhere to sleep, it can be really difficult knowing that there’s all these places with no one inside of them.

“They’re doing no use as they are.

“I do think something needs to be done because it’s so hard not having somewhere to sleep at night.”

Paul, 35, who is also currently homeless, said: “As a country, we’ve got all these resources, this is a rich city, it seems ridiculous that there should be so many people sleeping on the streets here.

“I’ve got a friend who is homeless who’s a qualified electrician.

“I’m a qualified double glazing fitter.

“We’ve all got things to contribute, we’ve all got value.

“I don’t know why something can’t be done.”

Polly Neate, chief executive of housing charity Shelter, said that making sure properties were occupied was just part of the answer to the country’s housing shortage.

She said: “In the midst of a homelessness crisis it is of course frustrating to see houses left empty.

“But the fact is that even if we filled every one of these, there still wouldn’t be nearly enough homes to solve the problem.

“Decades of failure to build has left us in the lurch. The Government must now get on and build a new generation of social homes where people need them most.”

A spokesman for the Ministry of Housing, Communities and Local Government said the Government was committed to bringing forward legislation to allow to double the rate of council tax on those homes left empty for two years or longer.

Read more http://www.theargus.co.uk/news/16373633.more-than-4000-brighton-homes-are-empty-despite-housing-crisis/

As in many countries around the world, the UK's planning system imposes a minimum standard on the size of homes, currently set at 37 square meters. Designed to protect low-income families from having to live in cramped and inappropriate conditions, these considerations don't apply in the same way to other demographics that now account for more than half of London households, according to data from CACI.

This is especially the case for young single professionals and house sharers who comprise almost a third of London households (32 percent, or 1.1 million people). Research from housing association Catalyst found that 48 percent of single people in London can't afford to pay the rent in traditional housing models, while demand surveys show that many are willing to sacrifice private space for a good location and access to amenities.

This begs the question of whether micro living and co-sharing solutions could have a role in addressing London's supply shortage.

Does size matter?

Micro living covers a spectrum of housing situations that provide personal living space below recommended limits. Jones Lang LaSalle in collaboration with the British Property Federation identified the three distinct micro living styles as:

1. Shared living – converted or subdivided houses (HMOs)

2. Co-living – purpose-built managed developments with shared amenities

3. Compact living – self-contained smaller homes

All three approaches can already be seen in the UK to varying degrees. Shared living has been widely practiced since the Housing Act 1985 permitted landlords to lease homes to three or more renters, while recent years have seen an increasing number of smaller homes being built in the UK, despite the planning requirement. This includes high-profile shared living projects such as The Collective, which currently offers 500 beds with personal living space of just 12–16 square meters and shared amenities.

JLL and BPF's research determined that the minimum amenities required for any home, regardless of size, are: a bed, toilet, shower, sink, cooking facilities, fridge, washing machine, table, sofa or arm chair and storage. Just as families share many of these amenities in a home, unrelated people can also successfully co-habit while retaining their own personal living space, although co-living arrangements are only recommended for renters and not as a permanent solution for owner-occupiers.

While minimum space standards offer protection for residents against exploitation, micro living can create comfortable and affordable homes for those with modest requirements, as long as developers follow good design attuned to residents' needs.

Can London learn from Asia?

As the most prominent example of a city making the most of limited available space, Hong Kong's residential market provides examples to London and other high density cities about approaches that can be taken – and what should be avoided.

Hong Kong has no minimum threshold for the size of homes, which has led to micro apartments as small as 20 square meters entering the market. While these satisfy many residents' needs, the high demand for affordable housing and lower down payments appealing to investors led to these 'nano flats' costing almost 10 percent more in square footage than larger properties in 2017, according to the Land Registry. This demonstrates that micro living is not a solution in itself and highlights the importance of standards and controls in residential markets.

Shared and co-living arrangements are gaining popularity in Hong Kong as an affordable alternative to cramped apartments. The concept is also catching on in China, particularly among students and tech and creative professionals in Beijing's Haidan district and other cities including Chongqing and Guangzhou. Co-living is also expected to take off in Singapore, which maintains a minimum size requirement of 35 square meters to discourage micro living despite similar levels of demand and density.

The latest version of the London Plan, which lays out the city's strategic framework for development, recognises the value of shared living developments as a short-term rental solution, while maintaining that these should be “appropriately sized to be comfortable and functional for a tenant's needs.” While micro living is not a silver bullet to fix London's housing shortage, a combination of approaches with appropriate checks and balances in place could help significantly to ease the pressure.

Associate director of residential research for JLL UK, Nick Whitten, explains: “In a world where households are smaller, we are living longer, and urban living across the planet is getting less and less affordable, we should be far more open-minded about the full spectrum of housing solutions available.”

https://www.scmp.com/presented/business/topics/invest-overseas-properties/article/2156395/can-micro-living-trends-solve

So it's definitely interesting – and potentially helpful – to check out a new list of the easiest places in the UK to buy and sell property.

The list compiled by Compare the Market is based on the average number of days a property spends on the market. It also takes into account the average length of time current owners have lived in their properties, the number of estate agents in the area, and the number of properties available per 100,000 people.

Canterbury, a historic and compact Kent city with a population of around 43,000 people, places top of the list. On average, properties there spend just 28 days on the market – compared to 89 days in London. Canterbury also has over five times as many estate agencies in relation to its population than the capital.

Bristol finishes second on the list, thanks largely to a high number of home-owners who don't settle down long-term – the average person in the Somerset city has spent just 2.5 years living in their property, compared to an average of 6.9 years in London.

With the average property spending just 40 days on the market, Southampton is ranked third on the list. York, recently named the best place to live in the UK, also makes the top ten in sixth place. And encouragingly, properties in both Southampton and York are below Compare the Market's national average of £292,893.

Check out the top ten below.

1. Canterbury (average house price: £311,154)

2. Bristol (average house price: £311,103)

3. Southampton (average house price: £280,128)

4. Manchester (average house price: £185,583)

5. Nottingham (average house price: £194,099)

6. York (average house price: £274,153)

7. Glasgow (average house price: £170,811)

8. Newcastle (average house price: £200,907)

9. Bradford (average house price: £131,036)

10. Portsmouth (average house price: £223,910)

Written by Nick Levine https://www.refinery29.uk/2018/07/204387/where-to-buy-property-uk

Today's opinion from Clive Fenton: Chief Executive of McCarthy & Stone - The UK's leading retirement builder.

"The number of over-65s in the UK is forecast to increase by nearly 50 per cent to 17.3m by 2037, and the number of over-85s by 88 per cent.

This challenge is often seen through the prism of healthcare and social care, but the question of housing is equally pressing. Current provision is grossly inadequate, and relying on the already stretched health and care system is not an option.

Like any chief executive, my duty is to run a profitable business – but ours also fulfills a vital social purpose. We provide purpose-built accommodation for retired people, allowing them to downsize from family homes that have perhaps become too burdensome and lonely.

Specialist retirement accommodation is predicated on occupants’ varying levels of independence and their care and social requirements. Shared areas such as lounges, restaurants, wellbeing suites, laundries and hairdressers provide a bespoke response to individuals’ needs, improving their quality of life.

The benefits do not end there: every retirement property sold represents a family home that has been released to the generation behind, thereby helping to resolve the severe squeeze in housing availability felt at every point in the chain. Help to Buy has helped first-time buyers, but if the housing crisis is to be surmounted, we also need intervention at the other end of the market.

All private retirement providers rely on additional income to fund the construction costs of these important shared areas and to ensure the initial sale price remains affordable. The majority – 90 per cent – use capitalised ground rents, distributed to respected institutional investors such as UK pension funds.

The shared spaces account for up to 30 per cent of each site, and cost £1-2m to build, putting retirement developers at a disadvantage to mainstream developers, who can sell more apartments on the same piece of land. Investors purchase the revenue streams from the ground rents and allow us to pay for the shared areas and reinvest into new development projects.

Importantly, unlike mainstream housebuilders, we remain as the landlord, meaning all management responsibilities remain with us. All the investor has is the right to receive the ground rent.

Ground rents, of course, have been under intense scrutiny, thanks to the activities of some who have imposed aggressive increases on leaseholders. Quite understandably, the government wishes to act, and the new housing secretary James Brokenshire is considering a move to set all ground rents at zero.

We support action against unfair ground rents, including the sale of leasehold houses, but a blanket ban will unduly affect responsible developers in the retirement sector and reduce supply into the market.

Unlike leasehold developers, we do not treat ground rents as windfall profit. They are set at a modest level, averaging £460 a year, and are static for 15 years, with reviews linked to inflation.

We agree that responsible development requires thoughtful and effective regulation. I urge the government to ensure that any move on ground rents distinguishes between the greedy and the good, and enables our industry to continue to grow and meet the urgent needs of the elderly people in this country. "

Opinion written by Clive Fenton, http://www.cityam.com/289477/ground-rents-need-reforming-but-not-expense-vital

The neo-Gothic palace, parts of which are nearly a thousand years old, is crumbling and MPs voted recently to decant to another building for around six years – most likely to nearby Whitehall – while refurbishment works are carried out. So far, so pedestrian. But one of the world’s largest architecture firms, Gensler, has a far more eye-catching solution. The MPs wouldn’t have to travel far, as Gensler’s proposed modular structure would sit adjacent to Parliament on the River Thames alongside the existing Member’s terrace.

Taking cues from the hammer-beam roof of Westminster Hall, the largest medieval timber roof in northern Europe, the 250-metre long temporary building would be supported by a series of steel platforms, with direct access to the existing central lobby, and it would be a high-tech wooden-framed structure that could house both the Commons, the Lords and all their requisite offices.

The river, they argue, is a natural defence mechanism – though the design does incorporate a number of additional security measures – and it could be built in less than three years across various UK shipyards, then assembled on the river, saving the British taxpayer, Gensler claims, more than £1.8bn, based on the House Committee’s own estimates.

“Once the refurbishment of the Palace is complete, the modular structure could be relocated and adapted to provide a permanent legacy as a Museum of Democracy or, alternatively, a new parliament for an emerging overseas democracy.”

This radical proposal was first put forward in 2016 and it hasn’t been taken into serious consideration as yet, but then neither has the refurbishment as a whole. If commissioned, it would be the first large-scale, high profile example of ‘aquatecture’ in Britain, a concept that’s already firmly established in many other parts of the world – especially in flood-prone regions like The Netherlands.

Unsurprisingly, fishing is both business and a means of survival in remote, water-logged parts of the world, where entire water cities have bobbed into existence. Ganvie in Benin is the largest lake village in Africa. Established around the 17th century, it comprises 3,000 buildings on stilts in the middle of Lake Nuokoué, with a population of around 30,000. With little tourism due to its remote location, the people survive by fishing and use canoes called pirogues to get around.

Migingo, another water-based village in Africa of about 130 people, is on Lake Victoria but is claimed by both Kenya and Uganda who want access to the area’s potentially lucrative fishing rights. Ko Panyi in Thailand is also built on stilts and it’s populated by 2,000 people, descended from just two families. Impressively, the children have even built a football pitch on the water from wood scraps and fishing rafts.

Other similarly impressive water amenities include floating gardens in Kar Lar Ywa in Myanmar, where 100,000 residents live and work from wooden houses on bamboo stilts, and even a floating school for the water community of Makoko in Nigeria, built by design practice NLÉ, although that collapsed in 2016 “due to deterioration resulting from a lack of proper maintenance and collective management.”

NLÉ also worked on the Lagos Water Communities project in 2012, a concept from Nigerian-born architect Kunlé Adeyemi, who wanted to transform an existing slum in Makoko that stretched out underneath a busy bridge.

The family units were conceived as floating A frames that would work in a similar way to earthquake proof buildings; in this case, their shape would absorb the shocks arising from flooding and rising water levels. The idea was that people would be able to keep their floating community, but with better living conditions in a structure that was built to combat the effects of climate change.

Aquatecture isn’t all wooden houses on stilts, however. Some of these communities are built from naturally occurring materials found in the area, such as Fadiouth in Senegal, where an island is made from thousands of clam shells. Upon this are granaries producing millet for export. There’s even a separate clam shell island for the village’s cemetery. In Uros Floating Village in Peru people craft their island homes from dried totora reeds that grow in Lake Titicaca; they have to rebuild every 30 years because the reeds decompose.

Back in the UK, Baca Architects has been trying to solve London’s housing crisis with a series of concepts involving floating communities on the docks and canals. The Bermondsey-based firm won a competition by think tank New London Architecture to come up with a way of dealing with the shortage of development sites in the capital, with a prototype of a floating home it created in Chichester Canal with another British firm, Floating Homes.

It was a prefabricated, split level house with a flat roof that could be replicated along London’s disused docklands, marinas and basins. Previously, Baca has toyed with the idea of a floating, solar and wind-powered Grand Prix circuit and a new floating town, with shops and community amenities, in the Royal Docks. It also built an ‘amphibious’ house on the River Lea in east London, which rises up to 2.8m when buoyed by floodwater.

We won’t just be living amphibiously in the future, we’ll also be hopping onto the water for work. Arlington Business Park in Theale, Berkshire, was developed around a series of man-made lakes created as flood defence. One of them is home to a one-of-a-kind floating meeting room designed by architecture firm TP Bennett in 2015. A challenging engineering and technical feat, the pavilion finally opens for functions this year.

“We wanted to work out how to get activity onto the lake and into the heart of the park,” says Neil Sterling, director at TP Bennett. “We looked at lots of technical considerations until we arrived at a structure that actually floats, so it’s in no way connected to the lake bed. It’s a truly floating structure, although it does connect via a pontoon – a bridge, ostensibly – back to the land.”

Energy is run along this to the pavilion, so it can host PowerPoint presentations and charge as many smartphones as needed out on the lake. The weight of the structure had to be perfectly balanced on top of a custom-made base, so the main timber frame was constructed in three parts off site, then delivered via lorries and craned on top before it was overclad with metal.

“The main design challenge was that the client wanted the structure to be as open as possible,” says Sterling. “Ordinarily on a floating structure you’d expect there to be a degree of solidity on the sides because that’s what you’d see on a boat. On this, we don’t have that, we have four relatively small corner posts, but they have been carefully designed to provide the correct stability to be able to get those 360 degree views.”

Similar to Baca’s amphibious house, the pavilion can rise and fall with the water levels, meaning the lake still serves its intended ecological purpose. “I know lots of people are thinking about having office accommodation on water and they can be very stable given the right engineering,” says Sterling. With land values on the rise and modular construction touted as the answer to unaffordable housing, is our future all at sea?

Read more of this article by Melissa York on http://www.cityam.com/288754/theyre-already-way-life-tens-thousands-people-but-could

Mark Emlick's acquisition of such a garage prompted the idea to transform it from plain old garage to gorgeous luxury apartment on a quite cul de sac lane, just 10 minute walk from the city centre.

"Of course, we met planning and building control challenges along the way: Converting a mews garage into a modern one bedroom residential property is not a simple task"

said Mark Emlick, Chairman of the specialist property development company Consensus Capital Group.

“Applying for the necessary permissions was easy enough once we had our proposal designed and planned. But once we installed the ceiling, with fire and sound proofing we had to adapt the lighting system so as not to compromise the new ceiling fire safety layers. Wall lights were our solution as we couldn’t lower the ceiling to use spotlights.”

“We also had to adapt our kitchen appliance plans due to listed building status and we weren’t allowed to install a gas flue into the building.”

Compromises are met as necessary but despite the normal challenges of property developing, we think the end result looks great!

The B listed townhouse forms part of an impressive Victorian terrace in the West End of Edinburgh had been a commercial building for years, but now is once again habitable as a luxury residential home. 

The property was previously the Scottish operational office of the Marine Conservation Society and also of building surveyors Wren & Bell.

CEO of Consensus Capital Group, Mark Emlick was successful in gaining the listed building consent and planning permission to convert the property back into its original residential use and for the subdivision into a lower ground floor apartment and three storey townhouse. Mark project managed all phases of the construction and fit-out of the property.

The Interior Design was completed by Nicky Murray Design. 

Buying a house in Scotland is a little different to doing the same South of the Border. Surprisingly buying North of the border can often be quicker, but for those relocating from England and Wales there are a number of points you need to bear in mind. 

Agreement in principle 

Before you begin house-hunting in Scotland you need to have an agreement in principle for your mortgage. An agreement in principle takes the form of confirmation from your lender that, subject to various conditions, they are prepared to give you a mortgage up to a certain amount. This amount will be based on your income in much the same way as it is in the rest of the UK. Without an agreement in principle in place, any offers you make on properties are unlikely to be taken very seriously. 

Sealed bids 

In England and Wales, houses are normally advertised at a given price and the vendor accepts that he may well have to settle for a price that is lower than the original asking price. Under the Scottish system, the vendor sets a price and invites offers in excess of this via a sealed bids system. Although this type of secret bidding is sometimes seen in the rest of the UK, it is normally only in cases where the property is particularly expensive or desirable. 

Commitment 

When you buy a house in Scotland, if your offer is accepted, you are immediately under an obligation to buy that property. This is why an agreement in principle is required before you go house-hunting. By contrast, in England and Wales, you can pull out of buying the property without penalty up until the time when contracts are exchanged. 

The Scottish vendor is also committed to the deal as soon as he accepts the buyer’s offer. Hence the risk of gazumping (where the vendor later accepts a higher offer from someone else) is removed. 

Solicitors 

Because of the earlier commitment to buy, solicitors play a much greater role in the buying and selling of homes in Scotland. In many cases the solicitor will act as the selling agent for a property rather than an estate agent. 

The actual house-hunting process in Scotland is much the same as anywhere else. But don’t forget, when you are looking at properties, that the advertised price is the minimum you will have to pay, and is not a starting point for bargaining downwards. 

As a buyer, you will need to appoint a solicitor before, or as soon as, you see a property you want to make an offer on. Once you are ready to make an offer, your solicitor will contact the selling agent and ask them to “note interest”. 

Finalising the mortgage 

After this, you will need to finalise your mortgage application by going back to your lender and providing details of the specific property you are planning to buy. Once this is done, the lender’s valuation can be carried out along with any further surveys you may need.

Home Reports and Surveys 

From 1 December 2008 home reports have become a legal requirement for most homes in Scotland marketed for sale. Each home report is an information pack prepared by a chartered surveyor and paid for by the property seller and contains three parts; a single survey, an energy performance certificate and a property questionnaire. Some reports will also contain a mortgage valuation report as well, although this is not a legal requirement.

The purpose of a home report is to provide the potential buyer with upfront information about the condition of the property, enabling them to make an informed decision. They are available at no cost to the potential buyer through the seller’s estate agent.

Home reports are a very useful way to understand the property you are committing to buy. You are legally committed to buying the property once you make your offer, it is important to know as much as you can about its condition. The results of the Home report will help you as well when it comes to deciding how much to offer. 

Of course, at this stage, there is no guarantee that your offer will be accepted.

Making an offer 

After the seller’s solicitor has received notification of interest from two or more buyers, he will announce a closing date by which all of the offers must be received. Because a sealed bids system is used, no-one knows what anyone else has bid. Also, each buyer can only bid once, so it is important to think very carefully about what size offer to make and get it right first time. 

Your solicitor will make the offer on your behalf and will also advise a “date of entry”. This is the date when you will be given the keys to your new home, and is the equivalent of the completion date used in England and Wales. 

Once the closing date for offers comes, the vendor will accept the highest bid and from this point on both parties are committed. There are no deposits involved unless you are buying a new property, but if either the buyer or the seller pulls out from here on, they are liable for any losses the other party may have incurred. 

Concluding the missives 

After the offer is accepted, the buyer’s solicitor will “conclude the missives”. This is similar to exchanging contracts under the English system. Once all the details of the sale have been agreed via this procedure, you as the buyer are responsible for the structure of the building and need to make sure you have adequate buildings insurance in place. 

Settlement 

All the funds to buy the property, together with all the fees, need to be ready for forwarding to your solicitor about two weeks before the date of entry. These monies will be transferred to your solicitor the day before your date of entry, and you will then need to sign the title deed to the property. 

Finally, the vendor’s solicitor will hand over the keys and the “disposition document” which legally transfers ownership of the property to you.

1: Hartfield Road, Wimbledon is a residential development of 6 new build flats. The architectural style is in-keeping with the adjoining terraced street scene and internally the flats are contemporary in style. All of the flats have been pre-sold to a private investor and the project is due for completion 2018.

2: Copse Hill, Wimbledon is a development of two new build detached family homes in a prime residential area. The houses have been designed with traditional brick exterior and contemporary open plan interiors and will be released with a sale value of £2.75m per unit. The project will be due for completion in Summer 2018.

With over one million homes bought and sold in England each year, delays and complications during the process cause unnecessary financial and emotional stress to customers. This uncertainty can lead to delayed decisions and contributes to over one quarter of house sales falling through annually.

According to government research, more than 6 out of 10 buyers and sellers have experienced stress, and around a quarter of sellers said they would use a different estate agent if they were to go through the process again.

Estate agents will now be required to hold a professional qualification and to be transparent about the fees they receive for referring clients to solicitors, surveyors and mortgage brokers. Other measures to make the system easier, faster and more transparent include:

• encouraging the use of voluntary reservation agreements to help prevent sales falling through and crack down on gazumping
• setting a timeline for local authority searches so buyers get the information they need within 10 days
• requiring managing agents and freeholders to provide up-to-date lease information for a set fee and to an agreed timetable which will end the current situation where leaseholders are at the mercy of freeholders and their agents
• strengthening the National Trading Standards Estate Agency Team so they can carry out more enforcement activity which includes banning agents

Housing Secretary Sajid Javid said:

Buying a home is one of the biggest and most important purchases someone will make in their life. But for far too long buyers and sellers have been trapped in a stressful system full of delays and uncertainty.

So we’re going to put the consumers back in the driving seat. We will require estate agents to hold a qualification so that people are no longer at risk from a minority of ‘rogue agents’ and can trust the process when buying or selling their home.

Mark Hayward, Chief Executive, NAEA Propertymark said:

We particularly welcome the commitment to further regulation - we have long argued that estate agents should be recognised as professionals, this is an important step towards achieving this and we look forward to working with the government.

There are approximately 20,000 estate agent businesses across the country, and currently, anyone can practice as an estate agent. The changes set out will professionalise the sector, creating a more trustworthy and reliable industry who will be better held to account.

Guides on ‘How to Buy’ and ‘How to Sell’ will be developed and published to ensure customers are better informed of the process and know what questions they should be asking. The government will work with consumer groups and industry to develop a consistent set of performance metrics for conveyancers, so consumers can make a more informed choice.

To bring the profession into the technology era, a working group will be set up to bring industry and partners, such as HM Land Registry, together to look at developing innovative digital solutions to speed up the home buying and selling process.

Government will consult on how the industry can be brought up to professional standards, like those in the same trade such as conveyancers, solicitors and surveyors.

Further information

These new measures follow an 8 week consultation which ended in December 2017.

There will be behavioural insight research carried out on reservation agreements with the aim of trialling them by the end of this year.

Research last year by the Department for Business, Energy and Industrial Strategy found:

• of those that experienced delays, 69% of sellers and 62% of buyers reported stress and worry as a result of the delay
• 46% of sellers had concerns about a buyer changing their mind after making an offer
• 24% of sellers would use a different estate agent if they were to go through the process again
• 32% of sellers and 28% of buyers were dissatisfied with the other party’s solicitor

Here's why...Twenty years ago, builders used to advertise a new listing with a small, pixelated photo of the home’s exterior that appeared in a black-and-white newspaper ad. Maybe they took a few interior shots, too, or paid extra for a four-color advertisement.

Thanks to the internet and digital photography, new-home marketers have much better options these days. Savvy building firms are capturing entire environments in super-high-resolution, three-dimensional, and 360-degree photographs and renderings. Viewed through virtual reality (VR) headsets, the images whisk potential buyers away to unbuilt homes and let them see all of the available options and upgrades. Others are utilizing gaming-engine software to create graphics-based, 3D models so detailed that they’re hard to distinguish from the real thing.

For many home building firms, the approach has become an integral and lucrative part of the selling process.

“At this point, five of our sales and two of our reservations all came from home buyers who experienced models through virtual reality,” says Rachel Peyton, marketing manager for San Diego–based Brookfield Residential, about the company’s Rancho Tesoro development in San Marcos, Calif. Brookfield began to offer VR walk-throughs in February and, based on the results, Peyton says she expects the technology to become a standard practice.

Using a variety of VR-based selling techniques including headsets attached to gaming consoles, Atlanta-based Pulte Homes, the third largest home builder in the country, is able to sell as many as half of the homes in some of its communities before breaking ground. In fact, builders across the country are employing VR in a variety of ways to reap dividends in sales and lower model home costs. Its main benefit is that it helps buyers—from anywhere in the world—visualize unbuilt structures from two-dimensional plans and drawings.

“There are people who have incredible imaginations and can walk into blank spaces, then imagine what could be there. But then there’s the rest of us,” says Rob Parker, president of Pinewood Forrest, a mixed-use development located south of Atlanta.

“The rest of us kind of need this support and help to imagine.” After releasing its first home sites in April and deploying VR, by press time Parker’s company had around 50 reservations. There are other benefits, too, besides helping prospective buyers imagine a new home inside and out. Builders use virtual homes to test new floor plans and gain approval from zoning officials or architectural review boards and avert early snags in the development process. Custom builders can show buyers what their designs will look like before breaking ground. But like any new technology, VR capability comes at a price, and the real question for builders considering the technology is whether the benefits are worth the time and expense.

The good news is that it’s not an all-or-nothing proposition; builders can select the level of sophistication that’s right for them and their budget. Here they are, broken down by good/better/best scenarios:

Good. The first and least expensive method includes utilizing a 3D, 360-degree digital camera, the most common of which is made by Matterport. Using a Matterport camera, room by room, users can take 360-degree images of existing model homes, then, utilizing the company’s web-based platform, upload and automatically stitch them together into VR tours. This option starts at $3,995 for a camera and $49 per month for a subscription that includes three projects (per month). To avoid those upfront costs and forgo the time and hassles of doing it themselves, many builders hire local photographers for about $300 per property.

Other types of professional-level 3D cameras include the Insta360 Pro Spherical VR 360 8K Camera ($3,499), Orah 4i Live Spherical VR Camera ($3,600), and the GoPro Omni MHDHX-006 ($4,999).

Top Headsets

There are many choices to consider when it comes to selecting a VR headset but the first question builders should ask themselves is: mobile or tethered?

Mobile headsets, which transform a smartphone into a VR device, are relatively inexpensive at about $100. An added bonus is that no wires are required.

A tethered headset is a good option for builders who have more money to spend and want a richer picture experience. These units connect to a laptop or Play Station video system and start at about $400, according to PC Magazine, plus the cost of the computer or gaming station that it will run on.

In its Best Headsets of 2017 roundup, independent rater Tom’s Guide liked the Oculus-backed Samsung Gear VR ($129), a mobile unit that features a Bluetooth controller and voice command capability. Among the tethered options, editors selected the much-talked-about Oculus Rift (starting at $599) and the HTC Vive ($799) as top picks.

For real bargain hunters, Tom’s Guide gave two thumbs up to the Magiove 3D VR, which works with both Android and iPhones and offers a lightweight design, accurate color reproduction, and minimal light leakage for a wallet-friendly price of $16.14.

Virtual walk-throughs made from digital images of real model homes produce the most lifelike results, but of course this option requires a fully constructed model home finished, furnished, and ready to photograph.

Better. A slightly higher–priced option allows builders to forgo model home construction altogether and sell via a fully virtual unit. For this approach, builders provide CAD files or drawings to a VR developer who creates renderings that are navigable in a 3D format from a laptop or video game system like PlayStation.

Costs for commissioning this type of experience range from about $1,500 for basic designs (mostly with preset architectural details) to $10,000 to $15,000 for a detailed model that’s fine-tuned with a builder’s specifications. A few of the companies offering this service nationwide include BDX (owned by Austin, Texas–based Builder Homesite), Trick 3D in Atlanta, and Laguna Niguel, Calif.–based Focus 360.

While a $10,000 to $15,000 glorified video game might seem expensive, the costs are often worth it, as industry experts say VR tours generated by gaming engines are nearly as convincing as physically being in the home. Gaming-engine tours also have a leg up by, in some cases, providing smoother motion and allowing users to navigate with greater accuracy.

What’s more, builders using the technology should compare this cost with the expense of constructing—and sometimes reconstructing—real-life models, according to Tim Costello, chairman and CEO of Builder Homesite.

“At the onset of a development, you might build three to five model homes, and then, once people start showing up, your sales team might call to inform you that people really just don’t like one of them,” Costello says. “Then you have to tear the model down and renovate, or possibly sell at a steeply discounted price, discontinue the plans, develop new ones, and start all over.”

Courtesy Builder Homesite 3D renderings can show how options or upgrades like a bonus room impact the look of a home.

Valerie Dolenga, director of corporate communications for PulteGroup, says her company previously used temporary model homes, constructed in warehouses, to conduct focus groups ahead of on-site construction. Now the company uses virtual models for its market research.

“Before a floor plan even gets to market, we have consumers walk through our homes and provide us with feedback,” Dolenga says. “People make substantial suggestions for changes, like where a door is placed, or the amount of space in a dining area. Virtual reality now plays a critical role in that process.” And at a cost, she says, that’s exponentially lower than constructing real model homes.

San Diego–based development firm Zephyr is using VR to sell its 60 condos at The Park, which won’t be complete until the end of this year. Zephyr CEO Brad Termini says his firm sees many applications for these realistic renderings. “Someday, we’ll be able to design homes on the spot, change out features and finishes, and add a room, all in real time while buyers ‘stand’ in the homes and provide feedback,” he says.
 

Courtesy Zephyr San Diego–based Zephyr is using VR to sell its new condo project, which won’t be complete until the end of this year.

Best. For builders who can afford to splurge, the most expensive option is a full VR setup with all the bells and whistles. In model homes and sales centers, builders combine the latest VR headsets, 4K large-screen televisions, and interactive gaming controllers to create more robust versions of their tours. The cost for this setup runs from $2,050 to $4,600 plus $10,000 to $15,000 for the renderings.

To achieve the ultimate experience builders use headsets like the HTC Vive or Oculus Rift, which connect to a gaming-level computer system. HTC Vive headsets utilize internal screens, rather than internally mounted smartphones, and small, gaming-style controllers.

This approach helps entice would-be buyers into a sales office, where staff can engage with them personally. Most people, Costello says, can’t resist giving the VR headset a try, even if only for a few seconds. Some builders use the curiosity about VR to draw people—regardless of whether they’re in the market for a home—into their sales office. Pinewood, for instance, is taking its VR experience on the road via a retrofitted Airstream trailer that the company will use as a mobile sales office. Similarly, Brookfield offered VR tours of Rancho Tesoro for four months via kiosks located in a shopping outlet.

The technology also offers benefits that can’t necessarily be quantified, such as giving building firms a boost with certain types of buyers, says Lisa Lenhart, marketing director for Charlotte, N.C.–based Fielding Homes.

“I think that, for some people at least, when they see that you’re on the cutting edge of marketing technologies, they tend to feel that you’ll also be on the cutting edge of building technologies,” she says.

After implementing Matterport tours, Lenhart says Fielding’s social media clicks increased by as much as 300%, while engagements rose more than tenfold. But the biggest feat of all, she notes, might be the property her firm sold based solely on VR.

“They selected their plan and wrote their contract remotely,” she says of the home buyers. And at a cost of about $300 per listing, that’s a whopping return on investment.

Read the original article here: http://www.builderonline.com/builder-100/marketing-sales/reality-check-using-vr-to-sell-homes_o

Reality Check verdict: There is currently a large gap between how many planning permissions are granted and how many houses are built. On average over the last decade, government figures show only half of granted planning permissions have resulted in building work being started. But we can't say exactly why developers are doing this - whether it's for profit, because of delays in the planning system or for another reason.

The prime minister has said she will tackle the failure to build enough houses in England. As part of this, Theresa May said she would make it harder for developers to hang on to land for which they have been granted planning permission without building on it.

Labour's shadow communities secretary Andrew Gwynne told BBC 5 live at the weekend: "There are thousands of planning applications that have been granted and yet developers are just sitting on that land - land banking whilst those developments that are chronically needed, just aren't being built."

But the Home Builders Federation, which represents developers, disputes that this so-called "land banking" is happening.

Their planning director, Andrew Whitaker, said: "Having gone to the expense and time of getting a permission, builders cannot afford to sit on it."

Unused land

Housing charity Shelter has looked at how quickly developers build. For each year they looked at the gap between planning permission being granted, building work starting, and completing. They allowed an 18-month gap between permission being granted and starting building, and another 18 months between building work starting and completing.

On average between 2006 and 2014 in England, fewer than 45% of all planning permissions granted were started and fewer than 50% completed. That suggests that half of all planning permission applications don't result in building activity at all.

The problem is, this doesn't tell us why developers are sitting on the land.

It also doesn't mean these projects will never be built.

One key reason that developers might wait is so they have a "pipeline" of land to develop on in the future.

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Dan Lewis, a senior infrastructure advisor at the Institute of Directors, says: "The last thing you want to do if you are a housing company is develop all your land at once, because then you'll go bankrupt."

Government review

As numbers of permissions granted have gone up, house building has not kept pace meaning the gap between permissions and housing supply has grown considerably.

This is something the government is already looking into as part of a review headed up by Conservative MP Sir Oliver Letwin.

The Ministry of Housing, Communities and Local Government says that as of July 2016, just over half the 684,000 homes with planning permission had been completed.

Analysis from the Local Government Association, which represents local councils, found last year there were 423,544 unimplemented planning permissions.

But a Home Builders Federation spokesman said these permissions are measured "at the point when the first condition is discharged but some permissions have 100-plus conditions attached that take months or years to discharge before builders are actually allowed to start building".

He added: "So a lot of the 'permissions' are stuck making their way through the planning system via understaffed local authority planning departments."

'Pipeline'

Critics say developers hold on to land as an asset. Instead of building on it, once developers have been granted planning permission they may be able to sell that land on at a profit to be developed by someone else.

Shelter accepts that these figures are not necessarily all because developers are speculating for profit.

But nevertheless their figures point clearly to the fact that there is land which is available for house building, on which houses have not yet been built.

The cause of this delay, however, is harder to pin down.

British households are taking on the highest levels of fresh mortgage debt since the beginning of 2008, spurred by low interest rates from the Bank of England, even as the proportion of first-time buyers dwindles. 

Banks extended new mortgage commitments to borrowers worth £69.6bn in the three months to the end of September, an increase of 14% on the same period in 2016 and the highest amount recorded over a three-month period since the start of 2008, official figures from Threadneedle Street show. 

The figures come after John McDonnell, the shadow chancellor, launched a report on Monday warning that banks are becoming increasingly engaged in a “race to the bottom” on mortgages, credit cards and other consumer loans that has worrying parallels to years before the financial crisis. The report by GFC Economics on behalf of the Labour party said banks had diverted resources away from financing small businesses in favour of selling mortgages.

The boom was driven by people remortgaging their homes in order to lock in cheap deals before the Bank raised the cost of borrowing in November for the first time in a decade. There was almost £1.4tn of mortgage debt outstanding at the end of September, up 4.1% on the same point a year ago.

Philip Shaw, the chief economist at Investec, said consumers were increasingly buying fixed-rate mortgages, “lighting a fire” under the total value of new lending. He said consumers were becoming savvier about picking cheap deals before the Bank raises interest rates further and to avoid more expensive standard variable rate mortgages.

Government ministers are likely to be embarrassed by the lending figures, which show the proportion of mortgages extended to first-time buyers fell over the period, despite their efforts to encourage more young people to get on the housing ladder with help-to-buy loan support. The share of new lending to first-time buyers fell by one percentage point to stand at 21% of the overall market. 

Philip Hammond was subjected to sharp criticism following the budget last month when analysis from the independent Office for Budget Responsibility showed steps to scrap stamp duty for most first-time buyers would push up house prices and only help 3,500 people buy a home. 

There was positive news for ministers seeking to curb the buy-to-let lending market after a boom in recent years, with the number of mortgages extended to landlords at its lowest level for four years. 

The figures also shine a light on cutthroat lending practices among banks, driven to offering more competitive rates by more lenders entering the market. Several small banks such as Aldermore and Atom Bank have started selling mortgages in recent years, while major banks such as RBS have also begun focusing more on home loans, viewing them as safer ways to make money than riskier investment banking. 

The Bank said the proportion of new loans extended at less than 2% above its base rate – which rose from 0.25% to 0.5% last month – now accounts for 65.1% of fresh loans sold to consumers, after a steady increase over the past year. 

However, the central bank will take comfort from figures showing how few people have slipped into arrears, with the lowest number of people falling behind on their monthly payments since at least the beginning of 2007. There was also a fall in the proportion of high loan-to-value mortgages, which are typically less risky for banks and easier for consumers to keep up with repayments. 

Threadneedle Street revealed last month that losses on mortgage lending would reach £17bn in the event of a severe economic shock, as part of its annual health check of the financial system. 

But it said banks would continue to function despite these heavy losses forecast in the stress test scenario, which included a 4.7% fall in UK GDP, a 33% drop in house prices, interest rates rising to 4% and a 27% fall in the pound.

Read the full article here: https://www.theguardian.com/business/2017/dec/12/new-mortgage-lending-uk-highest-level-2008

The average price of a home in the East Midlands rose by 7 per cent in the year to October to reach £185,000. This was the fastest rate of growth of any region in England, according to data compiled by the Land Registry and the Office for National Statistics.

Leicester, Wellingborough and Rutland are among nine local authorities that had double-digit house price growth this year, as recovery since the credit crunch gathers pace in the Midlands and further north.

Read the Full article here: https://www.thetimes.co.uk/edition/business/house-prices-rise-fastest-in-east-midlands-as-london-hits-ceiling-jdwvr66zz

Sites with room for almost 200,000 homes are missing from official registers of brownfield, according to research by the Campaign to Protect Rural England (CPRE). These include former builders’ yards, disused warehouses and blocks of garages no longer used for parking.

The government says that it has a “brownfield first” policy when identifying land for more homes. To help to achieve this it has ordered all councils in England to publish registers by the end of this month of brownfield land suitable for development.

Crown Mayfair are property experts and specialists based in London and report annually on the state of the market.