Home CGT plan criticised
Posted by The Oracle Group on 24th June 2019 -
TAX
Home CGT plan criticised
Labour has been criticised for considering plans to tax people on an increase in the value of their home. A report commissioned by the party says that applying Capital Gains Tax to main residences "would allow us to limit the wealth inequality arising from the housing boom". The report says that "a well-designed tax system would remove [the expectation of profits on resale], and thereby discourage people from treating homes as speculative assets". Applying the tax would cost many people tens of thousands of pounds on the sale of their home, with tax on gains levied at 28% on higher rate taxpayers. The report also calls for an increase in rates of the tax on second homes and investment properties in line with income tax. The Telegraph argues other measures in the report, including replacing inheritance tax with a “lifetime gifts tax” and the introduction of a tax on equity release, would deliver “an attack on private wealth of the sort not seen in this country since the Sixties.” The Mail says the proposed CGT move “would kill the housing market and fleece millions of ordinary people”. Labour has insisted the homes tax is "not under consideration" for its next manifesto.
HOUSING
Seven times current funding needed for affordable London housing
London mayor Sadiq Khan says he needs several times the current funding level to deliver affordable housing in the capital. According to a new report by the Greater London Authority, £4.9bn is needed each year to give Londoners affordable housing - seven times the £700m City Hall receives via the annual housing grant from central government. The report cites Mr Khan's affordable homes programme, noting that to deliver a similar 10-year programme up until 2032, there needs to be 325,000 new affordable homes over the course of the scheme. City Hall figures show 14,544 affordable homes were started last year, exceeding the target of 14,000 agreed with central government.
Record number of empty homes revamped under SEHP
Last year saw a record 1,128 properties revamped under the Scottish Empty Homes Partnership (SEHP), which is designed to rescue private sector houses from long-standing neglect. Since the scheme’s introduction in 2010, a total of 4,340 properties have been brought back into use. Housing minister Kevin Stewart said: “We have doubled our funding for the SEHP to more than £400,000 a year to help local authorities realise the benefits of this successful approach." The number of long-term empty homes has risen 5.5% in a year, with 39,300 vacant for six months or more in 2018 - an increase of 2,000 on 2017.
LGBT retirement communities proposed
Tonic Living has outlined a plan for what would be Britain's first retirement home for LGBT people. The organisation, founded in 2014, is hoping to find a site within a year. Another group, London Older Lesbians Co-housing (Lolc), is also on the lookout for a site in the capital. It hopes to build a base and move in within five years. The organisations say that for gay over-60s in Britain, the path towards assisted living can be especially tricky, as they are likelier than other pensioners to live alone, and fewer than half have children.
CONSTRUCTION
Builders see pay rise 9% as EU staff depart
Construction workers in Britain are earning an average £45,900 after pay rose despite a fall in the number of vacancies. The figure was up 9% from £42,300 in 2017, according to a report by the recruiter Randstad Construction. Site managers now command £50,500 on average, with the best said to be earning as much as £78,000. The pace of growth enjoyed by builders is two and a half times that of the wider population. Owen Goodhead, of Randstad, explained: "Our research shows that construction workers from overseas are being put off coming to the UK and those that are here are thinking of moving. The shrinking pool of EU talent is already driving up wages."
Attracting more women into construction
The Guardian carries a supplement entitled ‘Women in Engineering’, which looks at ways to increase the number of women in construction. It cites analysis by XpertHR which found that construction firms' pay gender gap is 24% - compared with a national average of 8.6%. Alison Fitch from construction management consultancy Invennt says there are a number of factors limiting the industry's ability to attract and retain female talent, including gender imbalance and a lack of flexible working arrangements. The supplement also interviews Dr Ozak Esu, technical lead at the BRE Centre for Smart Homes and Buildings, architect Carol Stitchman, and building engineer Gemma Taylor.
Debate: Modern building methods
Chris Stanley, housing manager at Concrete Block Association, argues that offsite construction is not particularly forward-thinking. While it might work as a short-term fix, “we run a real risk of repeating the mistakes of the and 60s, finding ourselves with an abundance of buildings that will start show their age rapidly,” he believes. However Ian King, chief operating officer at Zeroignition, disagrees. Modular, offsite construction is fast and efficient with factory-production quality standards. And the government's drive to get building projects digitised will “fundamentally improve record keeping,” while a host of new construction materials and building systems are being developed, he notes.
COMMERCIAL
Closed bank branches remaining empty
Analysis by the Local Data Company shows that the majority of high street bank branches that have shut since 2012 remain vacant as landlords struggle to find new tenants. In the past seven years 2,145 high street branches have closed, some 60% of which, or 1,292, are still empty. Only 4,822 bricks-and-mortar banks now remain in Britain. According to the research, commissioned by Fraser Real Estate, high street bank branches closed at a faster rate than any other retail outlet in 2018, taking over from pubs.
Netflix seeks bigger London HQ
Netflix is understood to have appointed CBRE to find it new and larger headquarters in London as it prepares for an aggressive push in Britain. The streaming service reportedly wants to find an office space of at least 50,000 sq ft. At present it occupies a site comprising 20,000 sq ft at Oxford Circus.
WeWork continues global expansion
Flexible office space provider WeWork is opening its first branch in Cape Town as it continues its global expansion. The American co-working company will be taking four floors in an 11-floor building called 80 Strand Street in Cape Town's financial district this year. The firm is also planning to enter the Middle East by the end of this year with reports that it is interested in Dubai.
PLANNING
Eco-estate to chop down ‘half a forest’
Developers have been criticised over plans to cut down "half a forest" to build an "environmentally friendly" estate. Locals say dozens of trees will be bulldozed to make room for the 13 grass-roofed homes on the outskirts of Salisbury, Wilts. But PNH Properties insists the 70 non-native redwood cedar trees they plan to remove have died and are in danger of falling down – and claims residents are using the trees to disguise the fact they do not want affordable housing near their homes.
ECONOMY
Consumer spending growth to slow
A report from the EY Item Club has forecast that slowing wage growth will in turn lead to lower consumer spending growth in 2019 (1.6%) compared to last year (1.8%). The study says that the outlook for consumers will be "relatively challenging over the next two years". Official figures show wages have been growing more quickly than inflation for 15 consecutive months, but EY expects earnings growth will begin to drop off and that employment growth will slow from 1.2% in 2018 to 1% in 2019 and 0.6% in 2020.
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