Housing bodies demand billions for new affordable homes
Posted by The Oracle Group on 25th June 2019 -
HOUSING
Housing bodies demand billions for new affordable homes
The Government must increase spending to build 145,000 affordable homes every year as the only solution to the housing crisis, according to a new report. The National Housing Federation, Shelter, Crisis, the Campaign To Protect Rural England and the Chartered Institute of Housing have joined forces to issue the call. They say it will cost the Government £12.8bn a year – but argue that only by raising state spending levels back to those last seen in the 1950s will enough homes be erected. New research by Heriot Watt University commissioned by the group found the current huge backlog of people who need a home can only be cleared if 145,000 social homes a year go up for the next decade. It also found that the building boom would add £120bn to the economy annually, meaning every pound spent by the Government would generate at least £5 in return.
Civitas keen to keep splashing cash on social housing
Having built up an £830m property portfolio, for-profit social landlord Civitas is looking to spend more than £200m on boosting its housing stock in order to take advantage of strong demand from the NHS and local councils. The majority of the firm’s properties are targeted at elderly or disabled residents. Civitas claims to have saved the taxpayer £59m in the past year by reducing public bodies’ reliance on emergency housing.The Daily Telegraph, Business, Page: 8
FIRMS
Queen sees commercial property profits rise…
The Crown Estate, the royal family's commercial property arm, delivered a record £343.5m to Treasury coffers last year. The Royal Family is set to receive 25% of that money through the Sovereign Grant, equivalent to £85.8m. The Crown Estate said income was up 4.3% from 2017, driven by the growth of its offshore wind business as well as acquisitions in central London. The group’s property portfolio value rose by 2.1% to £13.5bn, while its capital value grew 1.7% to £14.3bn. In the previous year, property and capital value were up 6.8% and 7.3% respectively. But chief financial officer, Kate Bowyer, said assets had been relatively insulated as they are "well-located".
…While Prince suffers downturn in fortunes
Prince Charles's property empire has warned that Brexit and climate change could affect its prosperity in the future. The Duchy of Cornwall, which owns 130,000 acres of land, recorded a rare drop in income in the year to March 31, down 0.5% to £21.63m – although its capital value increased by 3.1% to £1.09bn. The annual report said that removing the Common Agricultural Policy could reduce the value placed on farmers protecting the natural environment, while the funding of heritage and building projects could also be at risk.
RETAIL
London avoids bulk of CVAs
London has managed to avoid the worst of retailer restructures sweeping across Britain. CBRE looked at 2,802 UK shops that have been involved in a restructure process known as a Company Voluntary Arrangement since early 2018, and found that just 341 were in London, and just 12% of the stores affected in the capital closed. The research also revealed that over half of the stores in London affected by a CVA had no rent reductions at all, compared with 41% nationally. CBRE’s Tasos Vezyridis said: “London benefits from being one of the retail and tourism capitals of the world. It is more immune to the dangers posed by the growth of online retail.”
Monsoon’s restructuring puts 36 stores at risk of closure
Monsoon Accessorize could shut 36 stores under its CVA proposals, despite reassurances that there would be no immediate closures, with stores at high-profile locations at risk including London’s Oxford Street.
COMMERCIAL
London office transactions down by £3bn
London’s commercial property market saw a £3bn drop in office building transactions in the first half of the year, according to JLL. UK buyers were dominant, with JLL noting that over four million square feet of offices were set to be signed for in London. But overseas investors decided to wait and see what rents and occupier demand will look like once Britain leaves the EU, the research shows. The property agent estimates that transactions in the first six months will reach around £5bn, down from £8.1bn in the same period in 2018.
Edinburgh and Glasgow set for flex office boom
According to a report by JLL, the flexible office sector is set to double in Edinburgh and Glasgow over the next five years, and will account for over 3% and 4% of the total office stock in the respective cities by 2023. Demand for flexible office space is being driven by the evolving nature of work and the shifting structure of the economy, supported by rapidly advancing technology, the property agent said, with individuals and SMEs especially attracted by the increased flexibility, access to innovation and potential reductions in real estate.
TAX
Healthy restaurants to be served tax cuts
Public health minister Seema Kennedy has announced five council-led programmes designed to tackle obesity, rolled out nationally if deemed a success. The plans include councils banning planning permission for new junk food outlets, and prioritising applications by those which offer meals low in fat and sugar. Discounts on business rates will also be introduced for restaurants and cafes serving healthy food.
Domestic solar batteries face VAT hike
HMRC has proposed new laws that would see homes installing a solar-battery system hit with an increase in VAT from 5% to 20% on hardware costs. The 5% VAT rate will still be allowed for housing associations and buyers who are over the age of 60 or receive certain benefits. Home coal supplies will continue to receive the lower VAT rate. HMRC has blamed EU tax laws for the planned October rise as they rule out lower VAT rates for energy saving equipment under state aid rules.
REGENERATION
Ravenscraig regeneration masterplan approved
A masterplan to transform the site of the former Ravenscraig steelworks has been approved. North Lanarkshire Council has given planning permission to a multi-million pound development encompassing 376 hectares of derelict land. The site will be opened up to 12,000 people with the development of housing, schools, retail and business opportunities. Plans also include transport links and a new town centre.
Regeneration plan for Yeovil town centre
A multi-million pound plan to regenerate the centre of Yeovil has been submitted by developer Benson Elliot, which wants to deliver retail opportunities, new homes, leisure facilities and a cinema. South Somerset DC chief executive Alex Parmley said the proposals would "significantly benefit" the local economy and community.
ECONOMY
Think-tank: Brexit vote negative for the economy
Academic think-tank The UK in a Changing Europe says the Brexit vote has hurt the economy, with its Brexit Scorecard report saying: “There is little doubt that the impact of the Brexit vote on the UK economy has been negative.” The study, which considers the potential implications for inflation, productivity, public finances, exports and imports, says that while “huge uncertainties” remain about the long-term economic impact, “it seems highly unlikely to be positive”. “The question is how large the damage will be,” the report adds. The think-tank suggests that the UK economy is 2.5% smaller than it would be had Britain voted to remain in the EU.
OTHER
Harry and Meghan’s taxpayer-funded renovations cost £2.4m
The Duke and Duchess of Sussex's home was renovated with £2.4m of taxpayers' money, royal accounts show. Frogmore Cottage in Windsor was turned into a single property for Prince Harry and Meghan, from five separate homes. However the couple paid for any costs above the agreed budget, including furnishings, fixtures and fittings. The palace explained that "the property had already been earmarked for renovation in line with our responsibility to maintain the condition of the occupied royal palaces estate."
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