Quick house sales drop 70% - A daily roundup of all the key property news and views.
Posted by The Oracle Group on 29th July 2019 -
INDUSTRY
Quick house sales drop 70%
The number of homes being bought, renovated and sold on for profit has dropped 70% over the last 15 years as the property market cools. A report fromHamptons International has found that 18,630 homes were “flipped” across England and Wales last year, against 60,340 in 2004. “Flippers play an important role in the housing market by improving existing housing stock and bringing empty homes back into use,” said Hamptons’ Aneisha Beveridge, adding that “slowing house prices since the 2008 crash and tax changes in 2014 - which increased stamp duty for anyone buying a home worth more than £937,500 - have made it harder for them to make as much of a return as before.”
Devon house prices up £44k
Devon house prices have risen by 3.2% over the past year, with the average homeowner seeing their property value jump by around £44,000 in the last five years, according to the latest data from the Office of National Statistics. The average property in the area sold for £258,546 - above the UK average of £229,431.
HOUSING
Housing crisis ‘damaging British business’
Almost half of British businesses believe the UK housing shortage is having a harmful impact on the country’s productivity, according to new findings released by the Centre for Social Justice. Some 43% of UK firms said that housing issues are negatively impacting upon their productivity. The think-tank’s report also revealed that 48% believe that housing issues are having an adverse effect on the wellbeing of their staff. Andy Cook, boss of the CSJ, said: “Businesses are feeling the pressure of the housing crisis too, both in terms of the hit to productivity and when recruiting staff. But some are leading the way in ensuring that those most in need of the benefits of a job are housed appropriately.”
Architect slams Government’s record on council housing
TV architect George Clarke has spoken out on the Government’s record on council housing ahead of the airing of a new Channel 4 documentary, George Clarke’s Council House Scandal. Mr Clarke said: “The Government doesn't care. If it did, it would radically change its policies. It is about action, not words. I was brought up on a council housing estate and saw how good houses with public spaces created a great community.” The programme will be shown this Wednesday at 9pm.
LEGAL
Record fine for council flat let on Airbnb
Council tenant Toby Harman has been ordered to pay a record £100,974 in unlawful profits after it was discovered that he had been sub-letting his central London council flat through Airbnb since 2013. Westminster City Council, which uncovered the sub-letting, said it has formed a housing standards taskforce to both target rogue landlords and lettings and deal with the problems caused by short-term letting. Cllr Andrew Smith, cabinet member for housing services, said: “Social housing is there to provide much-needed homes for our residents, not to generate illicit profits for dishonest tenants.” He said the council would be reallocating the property “to someone in genuine need of a home.”
PLANNING
Housing plans threaten ‘silence and quiet’ of abbey
Nuns at the historic Malling Abbey in Kent could see their way of life ruined, according to local vicar Rev David Green, after developer Bellway asked Tonbridge and Malling Borough Council for permission to build 65 homes on land opposite the Abbey. The Rev Green said: “For the nuns, it's a particular concern because their entire way of life is built around silence and quiet, and they are being asked to effectively tolerate an enormous building site and a significant number of homes that will increase traffic and cause noise.” West Malling parish council has started a crowdfunding website to raise £10,000 for legal support at the inquiry to help protect the site "from the bulldozers". Bellway commented that there was "a proven need for more new homes across Tonbridge and Malling", and that the development would "make an important contribution to the availability of private and affordable homes".
RETAIL
Hammerson results to offer window into retail crisis
Shopping centre landlord Hammerson unveils its half-year results today, and it is expected to offer a fresh overview of the troubles facing the retail sector. A slump in the value of its portfolio dragged it down to a £269m loss last year. Since then it has been selling off retail parks and reducing its exposure to department stores, but the shift to online shopping is understood to have continued to take its toll.
ECONOMY
Jobs boom continues despite slow growth
The latest data from the British Chambers of Commerce (BCC) shows nearly a third of companies plan to hire more staff in the next three months, indicating that slowing growth had little impact on employers' intentions. The CBI's growth indicator survey also showed that the strong jobs market is unaffected by weakness elsewhere. However, almost two-thirds of firms are struggling to recruit employees, with the construction and hospitality sectors finding it particularly difficult.
Interest rates expected to remain on hold
Commenting ahead of this week’s MPC meeting, Howard Archer, chief economic adviser to the EY Item Club, says the Bank of England is likely to keep interest rates at 0.75% throughout the rest of 2019 and well into 2020.
The Scotsman
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