Housebuilders face Help to Buy code of conduct

Posted by The Oracle Group on 27th June 2019 -

INDUSTRY

Housebuilders face Help to Buy code of conduct

In an in interview with the Times, Housing Secretary James Brokenshire reveals that the Government is introducing “codes of practice” or “quality requirements” that housebuilders would need to meet to access the revised Help to Buy scheme, which will begin in 2021. The move comes amid concern about the construction of poor-quality homes. A consultation will be launched today on the New Homes Ombudsman, which will aim to hold developers to account, including ordering builders to pay compensation for defective properties. Mr Brokenshire is also to announce that new measures will be taken to prevent developers selling leasehold houses through Help to Buy, and that a deposit "passporting" scheme, which allows tenants to transfer rental deposits directly between landlords, will be considered.The Times, Page: 31   The Times, Page: 34   The Times, Page: 2

London boroughs most unaffordable for new buyers

First-time buyers in big cities need an average household income of £54,400, up by more than £4,500 over the past three years, according to a new report. Zoopla, which analysed house prices in the UK's 20 biggest cities, said that the average annual income needed ranged from £26,100 in Liverpool to £84,000 in London. A separate report from One77 Mortgages shows the City of London is the least affordable London borough for first-time buyers. Across the UK the net salary available would allow a home buyer to save a 10% deposit on the average house price in just 11.4 months – but this rises to 25.7 months in the Square Mile. The shortest time, at just 4.7 months, is in Burnley.City SM   The Times, Page: 40   Daily Mirror, Page: 18

Housesimple launches free service

An online estate agent plans to roll out a free home-selling service.Housesimple said the service, trialled in selected postcodes in Yorkshire and the North West, will be rolled out permanently across these markets and further to other specific towns and cities across the UK in the coming months. The firm will make its money earning referral fees from "no-obligation" services such as mortgages, conveyancing and insurance.The Sun, Page: 19   Yorkshire Post, Business, Page: 5

MORTGAGES

Mortgage lending hits three-year high

Mortgage lending rose to its highest level since the Brexit vote last month, as families shrugged off economic uncertainty. Figures from UK Finance show a total of 49,683 mortgages were agreed in May, up 9.1% on a year earlier, and the highest level since June 2016. Mortgage approvals for home purchases fell to 42,384, while gross mortgage lending across the market was £21.9bn, falling 0.4% compared with May 2018. Overall, £14bn was lent by High Street banks, up 3.5% from May 2018. The average price rose 1.4% in the year to April, and now stands at £228,903.The Sun, Page: 45   Daily Mail, Page: 75   City AM, Page: 9   The Daily Telegraph, Business, Page: 7 

HOUSING

IKEA pushes into UK housing market

Ikea could be building homes in the UK after Worthing Council agreed to work with a developer owned by the flat-pack retailer. The south coast local authority is considering a deal with BoKlok, owned by Ikea and construction company Skanska, to build up to 162 homes. Under the plan, Worthing would get 30% of the homes, which would be used for social housing in areas with a shortage of homes and high house price inflation. BoKlok's homes are factory-built and priced after calculating how much owners can afford after the cost of living is taken into account.The Independent   BBC News   Financial Times, Page: 18   Daily Mail, Page: 12   The I, Page: 19

Retirement sector expects to mature

The retirement housing sector is forecast to expand significantly over the next two decades. "The vision for our sector is that by 2030 we will have 250,000 people living in retirement communities, from 75,000 today," says Michael Voges, executive director of Arco, the trade body for retirement village operators. That expansion will require £40bn of investment and eventually generate £70bn in annual revenues. The Telegraph explores the motivation behind investment in the sector, while the Mail looks at St George's Barracks in Rutland, Britain’s first dementia-friendly village that utilises technology to build “talking” houses and adjustable street signs, and whose plans will be announced today by the government.Daily Mail, Page: 26   The Daily Telegraph, Business, Page: 4

PRIME

Sales of £1m homes hit record high

Sales of homes worth more than £1m increased to a record high of nearly 15,000 in Britain last year, according to Lloyds Bank. The number of £1m-plus deals increased in Scotland, Wales, the Midlands and northern England. The number in London fell slightly but the capital and the south east combined still accounted for nearly eight in 10 of the sales. There was also a slight fall in the number of houses sold for more than £2m, to 2,501.Daily Star, Page: 17   The I, Page: 42   Daily Mail, Page: 28   City AM, Page: 1

Rich Americans bag UK bargains

Research by Knight Frank suggests the proportion of "prime" homes sold to Americans has almost doubled in the last year. Discounts on asking prices and the fall in the value of the pound since the Brexit vote have driven an increased level of interest. Chinese buyers were still the most prolific buyers, picking up 10% of prime homes, while US investors were second on the list with 6%.The Times   Daily Mail   The Daily Telegraph 

COMMERCIAL

Investment in central London offices drops 37% from a year ago

Just £5.5bn worth of offices in central London are set to change hands in the first half of this year, according to Cushman & Wakefield, down 37% on last year.Financial Times, Page: 13   City AM, Page: 2

DEVELOPMENT

Oxford Uni in £4bn development

Oxford University and Legal & General are partnering to deliver a £4bn, 10-year scheme providing thousands of homes for staff and graduates as well as new science and innovation districts. The university will provide the land, and the financial services firm will pay for the buildings and receive rent but will eventually hand the properties to the university. Legal & General said that it is in talks with other universities to create similar partnerships.The Times, Page: 18

Former Tesco HQ to become ‘urban village’

Tesco’s 1970s-era headquarters in Cheshunt is to be demolished and replaced by a £620m “urban village”. Inland Homes has planning permission form Broxbourne BC to build 1,725 homes, with 19,000 sq m of commercial space and a primary school. The company estimates the scheme will lead to the creation of 1,000 new jobs, on top of the 250 construction workers who will work on site while it is being built.The Times, Page: 37   The Daily Telegraph, Business, Page: 4

RETAIL

UK a ‘challenging’ retail environment

The UK is in the middle of the most challenging retail environment since 1991, with CVAs engulfing some of the sector's best known brands, according to Colliers' latest Midsummer Retail Report. Analysis showed that average prime rents for retail space over the last 12 months have dropped by an average 7.01%. The report also said landlords can no longer rely on restaurant chains, which continue to slow down in all but the most desirable in and out-of-town pitches. "The trials and tribulations of the UK retail sector have become somewhat emblematic of the wider problems brought about by continued political and economic uncertainty," Colliers said.The Scotsman   Yorkshire Post, Business, Page: 8

Bathstore falls into administration

Bathroom retailer Bathstore has collapsed into administration, leaving hundreds of jobs and around 135 stores vulnerable as administrators look to sell the business.The Daily Telegraph, Business, Page: 1    Financial Times, Page: 18   The Times, Page: 37   Daily Mail, Page: 73   Daily Express, Page: 47   Daily Mirror, Page: 16   City AM, Page: 6   The Sun, Page: 45  

TAX

£1bn in council tax uncollected

Some £1.03bn of council tax arrears was recorded last year, meaning almost £1 in every £30 due went unpaid. Town halls succeeded in collecting £29.3bn of the money owed. The annual uncollected total was £956m in the previous year, 2017/18. The LGA said collection rates were down by just 0.1% and that the amount of arrears collected from earlier years has gone up.Daily Mail, Page: 30

ECONOMY

Carney hints at no-deal rate cut

Mark Carney has given the clearest indication yet that interest rates may be cut in the event of a no-deal Brexit. The Bank of England governor told MPs that there would be no “automatic” response if Britain crashed out of the European Union without a deal, but a package of stimulus measures would be the most likely outcome.The Times, Page: 7   The Daily Telegraph, Business, Page: 4   Financial Times, Page: 2   The Guardian, Page: 32

OTHER

Record numbers leave London

ONS data shows that more than 340,000 people left London last year to live in other parts of the country, the highest figure since data on the matter was first collected in 2012. High property prices and crime have been blamed for the increase. Overall, 340,500 London residents moved to other regions in the year to June last year, up from 336,000 the previous year. In 2012, 255,000 people left London for other areas, the figures showed.The Times, Page: 4   The Daily Telegraph, Page: 10   Evening Standard

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