A daily roundup of all the key property news and views
Posted by The Oracle Group on 10th June 2019 -
INDUSTRY
New developments boost local house prices
New research indicates that new housing developments criticised by local residents for harming their house prices could actually be a boon for local property values. Online property lender Blend Network found that 17 of the top 20 areas for new homes built between 2011 and 2017 enjoyed house growth higher than the national average. Yann Murciano, of Blend, said: “Many homeowners assume large housing developments in their home towns will have a negative effect on house prices. But in many instances we found the opposite was true.” Simon Rubinsohn of Rics commented: “It is fundamentally about whether enough homes are built in an area compared to the number of people that want to live in an area.”
POLICY
Gyimah: cut stamp duty, give residents planning power
Stamp duty would be slashed with a goal of eliminating it entirely for homes valued below £1m under plans set out by Tory leadership hopeful Sam Gyimah. "This would eliminate stamp duty for 98% of housing transactions, but forgo only 68% of the tax receipts, at a cost of £6bn," he said. The former universities minister said his proposals would create at least a million new homes in five years to help young people get on the housing ladder. He would also give residents the power to decide on planning decisions in their own streets, making it easier to extend existing buildings. Mr Gyimah would further make big infrastructure projects such as Crossrail 2 self-financing, with new housing around stations, and introduce a new "flexible" right-to-buy for social tenants.
RENTAL
Student accommodation provider eyes European markets
University accommodation developer Fusion Students is planning to build more student bedrooms abroad as Brexit is expected to cause a drop in the number of European students at UK universities. The company said it had identified Europe as a “lucrative gap in the market” and is in talks with potential partners in countries including Portugal, Denmark and Spain. Fusion’s new £85m accommodation block in Swansea will act as a ‘show development’ for overseas investors.
Social renters face quality problems
Over 50% of those renting from a local authority or housing association have had problems in the past three years, such as gas leaks or electrical hazards, a poll of 1,000 people by charity Shelter found. And 10% had to report issues more than 10 times, it discovered. Shelter chief Polly Neate said: "Social tenants in Grenfell Tower raised serious concerns before the 2017 fire, but they were ignored. Two years on, renters are still being failed by poor regulation." Shelter said it backed calls for the appointment of a new regulator to protect tenants.
Concerns vulnerable women preyed on by landlords
The Scottish Women’s Convention (SWC) has warned that vulnerable women are being coerced into sex with predatory landlords, with extortionate rents, exploitation and abuse rife in the private rental market. SWC chair Agnes Tolmie said: “We need to talk about the hidden homeless as this is as much of a problem as those who are living in the streets.”
REGENERATION
First Base to take on first South West project
The grade II listed showroom of Gardiner Haskins, one of Britain's largest independent department stores, has been sold to a developer as part of plans for a new £175m district in Bristol. Property developer First Base, which specialises in the regeneration of towns and city centres, plans to create a new district comprising modern workspaces, homes, an aparthotel, cafés and restaurants. The scheme will be the developer's first project in the South West.
Earls Court in limbo
Jack Torrance looks at the fortunes of the Earls Court development, which Capital & Counties, or Capco, plans to turn into a new neighbourhood of 7,500 homes, one million square feet of offices, shops and restaurants, and central London’s biggest new park in a century. The combined value of Capco’s Earls Court holdings have fallen by more than half since 2015, while Hammersmith & Fulham council is looking to use its compulsory purchase order powers to seize parts of the area. But Capco remains positive, with Situl Jobanputra, chief financial officer, saying: ”We have a scheme with planning, where there has been significant progress over a number of years.”
HOUSING
Grenfell survivors warn of further disasters
The survivors and bereaved of Grenfell Tower will address Housing Secretary James Brokenshire at parliament today, for an event before Friday's second anniversary of the blaze. They will warn that similar disasters could occur because of a failure to tackle the root causes of the fire that claimed 72 lives. Mayor of London Sadiq Khan has joined those voicing criticism about a lack of changes to social housing policy, and Labour’s housing spokesperson, John Healey, has called for councils to seize high-rise blocks from owners who have not replaced Grenfell-style cladding by the end of this year. The latest figures show that 164 high-rise private blocks have still not had aluminium composite material (ACM) cladding replaced, and 70 have no firm plan in place to address the issue.The Guardian, Page: 19 The Times, Page: 9
Barking flats evacuated after blaze
Twenty flats were destroyed and another 10 have been damaged after a fire engulfed a building in Barking, London, yesterday afternoon. The blaze spread over six floors of the block of flats in De Pass Gardens. About 100 firefighters worked for more than two hours to subdue the fire which resulted in two people needing treatment for the effects of inhaling smoke. Residents say they had raised concerns with builder Bellway Homes and the local council about the safety of wooden balconies on the block of flats. Daily Mail, Page: 10 Evening Standard BBC News The Independent The Guardian, Page: 19 The Daily Telegraph The Times, Page: 9
Hancock says homes should not be sold to fund care
Conservative party leadership hopeful Matt Hancock has pledged to introduce a state-backed insurance scheme to support the social care system, saying elderly people should not be forced to sell their homes to pay for care. The Health Secretary has adopted the policy for his campaign, but it is also at the centre of the Government's long-delayed green paper on social care. Mr Hancock says workers would have to fund a scheme able to cover average lifetime care costs of around £40,000 - more if they wanted to also cover potential residential costs. The scheme would be voluntary at first, adding: “I'd like to see people encouraged to take it out when they get their first mortgage.”
PRIME
Luxury London flats re-enter the market
Almacantar, the developer behind the conversion of a 1960s tower in London’s West End into luxury flats, has decided to start marketing the properties again, having cancelled a sales campaign last year because prospective buyers were asking for discounts. It has now reappointed sales agents to sell flats at 34-storey Centre Point. It is understood that about 60% of the 82 flats, which range in price from £1.8m to £55m, have been sold so far.
FIRMS
Appointments
Development and construction group the Cruden Group has announced the appointment of chartered accountant Euan Haggerty to the role of group finance director. He previously held the title of finance director at Miller Developments. Elsewhere, Aberdein Considine has promoted Jennifer Matthew from senior solicitor to associate in Edinburgh. And finally, chartered surveyor DM Hall has appointed local surveyor Peter Rasberry to its Dunfermline office.
ECONOMY
FSB: 45% of small firms expect growth this year
A record low number of small business are expecting to grow over the next 12 months, according to the Federation of Small Businesses, with just 45% saying they are likely to see expansion in the coming year. The FSB’s quarterly confidence index measure stood at -8.8 in Q2, down 22 points on a year ago and marking the fourth consecutive negative reading. The poll saw 72% of small firms say that the cost of running their business was increasing, with 48% identifying labour costs as the main reason and 34% saying regulation. It was also shown that 42% saw profits dip in Q2. Mike Cherry, national chairman of the FSB, said that small manufacturers, construction companies and retailers had been hit especially hard by business rates, higher input prices from the weaker pound and rising labour costs.
Retail footfall hits six-year low
A monthly footfall tracker from the British Retail Consortium and Springboard shows that store visits touched a six-year low in May, with a 3.5% decline the worst since January 2013. The dip has been attributed to a number of factors, including poor weather, political uncertainty, "anachronistic" business rates and competition from online shopping. BRC chief executive Helen Dickinson notes that the report shows declines in every region and across high streets, retail parks and shopping centres.
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