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Bury has been named as the leading property sales hotspot in England and Wales
Home sales in northern towns have been escalating significantly over the first six months of 2011, it has been found. According to new research from Halifax, the region is home to the four areas that witnessed the largest rises in residential property purchases across this time. These were Leigh, Rugeley, Houghton Le Spring and Bury, the latter of which experienced a 44 per cent jump and emerged as the number one dwelling sales hotspot in the nation. Suren Thiru, housing economist at Halifax - which is a division of Bank of Scotland - said: "Many of the top performing towns are in the north, reflecting a reversal of 2010 when the housing market in southern England outperformed the north." The industry expert noted a number of locations in England and Wales have seen marked rises in property sales of late, adding the housing market in these places have been helped by relatively favourable levels of affordability.
Details
Ordinary working families are struggling to afford average private rents
Ordinary working families are finding it difficult to keep up rental payments across England, new research has indicated. Carried out by Shelter, the study revealed these average costs are unaffordable in more than half (55 per cent) of the country's local authorities. According to the investigation, the majority of these regions are seeing typical payment demands from private landlords that are more than one-third of the typical take-home wages for the areas. The charity stated it would like to see the government take further action to help stabilise the market and help bring the sums being paid by tenants down to workable amounts. Campbell Robb, chief executive of Shelter - which was founded in England in 1968, before being established in Scotland two years later - commented: "With huge differences in affordability across the country, there are now worrying signs that families are likely to be displaced by our out-of-control rental market."
Details
There is increasing interest in the buy-to-let housing market
There has been an increase in buy-to-let mortgage applications. This is according to figures from Paragon Mortgages, which found the third quarter saw a 3.1 per cent rise in those looking for the product. Some 43 per cent of intermediaries discovered that their buy-to-let business levels were on the up during this three month period. Of these, 12 per cent said activity hiked by more than ten per cent, while 13 per cent said the swell was between six and ten per cent. John Heron, managing director of Paragon Mortgages, stated: "It is positive to see that buy-to-let accounted for a growing percentage of intermediaries' overall business levels during the third quarter." He added it is important people continue to support the industry due to the pressure currently on the private rented sector. It comes after research by Shelter found that average rental costs are unaffordable across 55 per cent of local authorities.
Details
Demand in the letting sector is outstripping supply
Letting demand is increasing by so much that the private rental sector is nearing capacity. This is according to the Associtaion of Residential Letting Agents (Arla), which found 74 per cent of agents think demand is outstripping supply. London and the south-easty are the two locations where the situation is at its worst, while the average stay is now 19 months. Tim Hyatt, president of Arla - which was formed in 1981 and has 3,500 member offices throughout the UK - noted it is not feasible to expect the rental sector to prop up the housing market. "There is a finite amount of rental property and unless both housing supply and mortgage availability improves then renters will find that their options in the market are reduced," he added. Mr Hyatt continued by saying the government is not doing anything to encourage more landlords into the market. Because of this, he observed the quality of housing stock being offered could decrease.
Details
The third quarter saw demand for private sector property continue to climb
A notable increase in tenant demand for private sector property was seen during the third quarter of 2011, new research has shown. Carried out by Paragon, the study revealed 44 per cent of landlords saw such movement over the three-month period, while just four per cent claimed it had declined. In addition, 49 per cent of those questioned said they expect the trend to continue upwards over the next 12 months. Nigel Terrington, chief executive of Paragon-which unveiled its first mortgage product for residential property investors in the middle of the 1990s - observed he is not suprised that tenant demand is on the increase in this field, due to the pressures currently weighing down on the UK housing market. The Industry figure stated: "More people than ever before are relying on the private rented sector so it is positive to see that landlords are looking to invest in their portfolios."
Details
Tenants are wary to move in case they cannot find a new flat
The number of new tenancies has been at record levels for the past year but the PRS may finally be running out of space to cater for tenant demand. The number of agents from ARLA's 6,000 members across the UK stating that there are more tenants than properties has reached the highest level since records began. 74 per cent of respondents believe that demand is outstripping supply, as has been the case for the past four quarters. The increase in demand is particularly acute in London and the south east and suggests that there is insufficient supply of property to meet tenant demand. The survey also demonstrates that the periods in which tenants are staying in their properties has increased to a record high of 19 months, as tenants are wary of trying to find a new property in such a competitive market. The number of new tenancies signed up by agents has risen rapidly in a consistently upward trend since 2001. But this figure has remained consistent at 34 new tenants every month per branch throughout 2011 after record numbers of new renters entered the market in 2010. ARLA's member agents believe that this may be because there is simply a lack of desirable property on the market to entice new renters as the PRS finally feels the strain of supporting the UK's housing slump. Tim Hyatt, president of ARLA, said: "The UK cannot rely on the rental sector to support the housing market in perpetuity. The reality is that there is a finite amount of rental property and unless both housing supply and mortgage availabilty improves then renters will find that their options in the market are reduced." "The Government is doing little to encourage landlords to invest in new properties therfore we are running out of quality stock to offer to tenants. This is reflected in rent increases and a lack of choice for consumers. "Within such an intensley competitive market, we would advise tenants and landlords to seek the best possible advice from agents as there will be those that seek to exploit this situation. Egaging with an ARLA-licensed letting agent is one way to protect your assets guard against this and guard against unethical operators." Ian Potter, operations manager of ARLA, added: "Although the Prime Minister has announced plans to re-instate Right to Buy and new funds to finance new build, we would query how many properties within the social sector are blocked. This can be either by elderly tenants who do not want to leave the 'family home' or the economical poor who, even with Right to Buy, will struggle to finance a purchase. How many properties will have to be sold to finance each new build?
Details
The Private Rental Sector is falling behind Green standards
More than a third (35%) of UK landlords are unaware of the energy performance of their properties, according to our latest research. More than one in six landlords (17%) believed that their properties fell into the minimum category of energy efficient performance, the F & G Band of the Energy Performance Certificate (EPC). From 2018 under the Governments Green Deal, the rental of properties performing to this level will be banned through the minimum efficiency standard. We believe that with the large influx of consumers using the PRS as an alternative to buying, landlords need assistance from the Government to achieve minimum standards. Along with other professional bodies we have called for the scope and value of the Landlords Energy Savings Allowance (Lesa) to be extended. Ian Potter, operations manager of ARLA, said: "The clock is ticking for the PRS to improve its environmental performance but the investment just isn't there to ensure that this change takes place in the Government's timeframe. "ARLA has campaigned for the Government to incentivise-through tax relief- the improvement of rental properties. Otherwise it is going to be exceedingly difficult for the majority of landlords to find the funds to improve stock." While Green Deal will offer landlords access to funds many continue to have concerns over tenants reactions to finding that they have an extra payment to make along with their energy consumption. "The issues of fuel poverty among too many of the UK's households has been raised again as we approach winter," explained Mr Potter. "We urge the Government to ensure that the Green Deal is an effective solution to the crisis we will face unless the energy efficiency standards in the PRS and the UK housing stock in general can be improved." The survey of more than 1,500 landlords in June 2011 showed that the number of properties in the F & G band remained consistent with the previous quarter. The gap between prices in the north of the UK compared with those in the south have reached its highest level for years, according to the latest monthly index from Rightmove published today. Nationally asking prices increased by 2.8% but this masks two tier UK property market with prices up 4.7% to set new records in the south while in the north they have decreased by 0.7% to levels last seen over six years ago in May 2005. Average property prices in the south are now at £336,743, more than double those in the north at £164,347. Demand in London has been boosted by cash rich buyers with large deposits who are benefitting from cheap mortgage rates. Rightmove said that prices in the city are also being supported as Europe's debt crisis encourages investors to seek less risky assets. Asking prices in Kensington and Chelsea, London's most expensive district, rose 6.6% on the month, Rightmove said. The average price in the area was £1.92 million. In london all 32 boroughs saw prices rise in October. The number of homes being put on sale in the city during the month dropped 14% to 15,927 compared with October 2010, and Rightmove said a shortage of properties for sale is supporting values. "That is likely to be one of the key factors behind this month's new sellers pitching their asking at an all time high," said Righmove director Miles Shipside. Wider access to mortgages and rising asking prices are early signs of increasing demand, giving home owners some grounds for hope of a market recovery. However, the reality is that there is further evidence of the two tier twist which is dogging the return to more widespread liquidity in the housing market. While those in the affluent south may have cause to celebrate their prices being well up on this time last year, prices in the north continue to go backwards, leaving the widest price gap ever. For the average asking price of a property in the south you could now buy two average properties in the north and still have enough change left to buy new carpets and curtains. The south's ability to perform better despite the continuing global financial crisis and resultant credit squeeze is further highlighted by property coming to the market at all-time price highs in both the London and South East regions. London's £450,210 is 2.6% higher than the previous record set in June this year, while the £317,055 seen in the South East is 0.2% up on the previous high in May 2008. Existing home owners in the highest priced regions are seeing the value of their bricks and mortar increase even further, though it is at the expense of buyers who are faced with the highest ever asking prices,said Miles Shipside, Director of Rightmove. Those trading up will benefit from already being on the housing ladder, though the gap to trade up to the next rung is a bigger financial leap when prices rise like this and desirable homes are in short supply. Those who are not property owners, such as first time buyers or those taking an ownership break in the rented sector, will either have to spend more or compromise on what they can afford, he added. Compared to the beginning of the credit crunch four years ago, prices of properties coming to the market have risen by 5.4% in the south but have fallen by 9.6% in the north. In the last year, sellers coming to the market in the north have on average reduced their asking prices by 2.6%, while those in the south have felt able to put them up by 3.9%. Price decreases usually result when negative sentiment, influenced by uncertainty around employment and tightening of finances, rises. of the seven UK regions with the highest unemployment levels six are in the north, so employment concerns, especially in the public sector, will be exerting downwards pressure on prices and activity in many northern areas. This will be exacerbated by lenders favouring buyers with higher deposits, where the less affluent north also fares poorly. There is quite a simple formula to generate activity in the housing market, and access to finance through the ability to raise a substantial deposit and a secure job to fund repayments are the key variables. If prices are perceived to be rising then buyers are afraid that their dream home could move out of their reach unless they act quickly. These drivers of higher volumes of transactions and more buoyant conditions are more prevalent in the south, said Shipside. With mortgage approvals recovering to levels similar to two years ago, it seems that owners in London are enjoying the biggest growth in equity and should be feeling positive about trading up. However, there are signs that the distance to the next rung of the ladder may be getting too high for some in the capital as the number of new sellers coming to the market is 13.9% down compared to this time last year. Low rate mortgage deals will only benefit those with the requisite high deposits, and at the moment the best equity growth has been seen in the London market. With record prices in the capital, some will be priced out of the best areas and will either have to stay put or look for value further afield. If they are looking to move to the north of the country, the growing price gap will let them buy a lot more house for their money.
Details
Property industry welcomes transfer of planning power in the UK
The British Property Federation has welcomed the largest ever transfer of planning power from Whitehall to local communities in its response to the consultation on the draft National Planning Policy Framework (NPPF). The draft NPPF puts local plan making at the heart of the planning system, meaning for the first time that democratically elected local authorities, rather than unelected regional quangos, will have the final say over what development should take place in their areas. Under the proposals, a planning application would only be judged against the principles set out in the NPPF in the absence of an adopted core strategy, giving local authorities a strong incentive to plan positively to meet the needs and aspirations of their area while paying full regard to the principles of sustainability. Currently almost 70% of local authorities do not have an adopted core strategy, seven years on from the legislation instructing them to do so. The extra powers that will be given to communities are welcome, but with power comes responsibility. Although resources are stretched, preparing and maintaining an up to date core strategy should be seen as one of the most important functions of any local authority. For whatever reason most local authorities haven't produced a strategy. At the very least the NPPF should incentivise them to prepare one, said Liz Peace, chief executive of the British Property Federation. In its response the BPF again reiterated its support for the changes, believing they should lead to a framework which will be clear and succint, help to create urgently needed jobs and homes and take into account the principles of sustainability. The BPF also suggests that there should be an explicit reference to a brownfield land first policy to help allay concerns expressed by green groups that it would lead to the despoliation of the countryside. We do not believe that the draft NPPF seeks to undermine environmental concerns but if greater clarification would allay these fears then we would be happy to see some changes. We want to see as much new building as possible take place on Brownfield land, accepting that in some cases Brownfield land may be of greater environmental value that Greenfield sites,'explained Peace. The BPF welcomes the presumption in favour of sustainable development and believes that although it is not the radical change some have claimed, it will produce better outcomes for local authorities, communities and the development industry. While the presumption is an important aspect of the emerging NPPF, we do not see it as marking a radical change to the existing planning system. The crucial point, which so many of those attacking the draft NPPF have ignored, is that the presumption should not be exercised in a vacuum but within the context of a local plan drawn up by an elected local authority following extensive consultation with their local community, said Peace. The BPF said that the presumption would help local authorities plan positively for growth, but would not mean that those without a plan would find unwelcome and inappropriate development thrust upon them. The suggestion that there is no up to date plan then anything goes is an inaccurate interpretation of the government's proposal. If an up to date local plan is not in force, then decisions about planning applications will be made in accordance with the principles set out in the draft NPPF, added Peace. She also explained that the BPF believes that the definition in the NPPF is widely accepted, but is happy to agree to a different form of words if this would allay the fears of environmentalists. The definition of sustainable development in the draft NPPF uses the classic Brundtland definition and talks appropriatley about balancing economic, social and economic considerations. The Brundtland definition has the merit of familiarity. However, we recognise that it was designed to cover a wide spectrum of issues relating to the development of nations rather than built development perse and we are not wedded to this definition if a better form of words can be found, she added. Malcolm Chumbley, head of UK Development Agency, Cluttons, said that the government must not succumb to the pressure being applied by voices of objection which do not represent the views of the majority. At the moment, developers are in limbo, and this cannot continue if we are able to tackle the housing crisis we are facing. The time for action has come, and we need to see viable plans to house the nation implemented. The alternative is a crisis which will freeze the house building sector and cripple UK growth, he explained. We must recognise that for our country to prosper we need to see change. Now that the consultation period is over, we are keen to see this delivered within a sensible and stable framework. Brownfield land should continueto take priority over Greenfield sites for development, and if local authorities and the government can proactively work together to ensure suitable space is brought forward for housing, we can take the first step to solving one of the nation's most concerning problems, he added.
Details
Average UK property has lost £7,500 in value in the last 12 months
The average residential property in the UK has seen its price drop £7,500 in the last 12 months, according to new research. The average price is currently £219,243 down 3.2% in the last year, research from property website Zoopla shows. London and the South East are the only regions to record rises over the last year with London and Aberdeen coming out as the best performing cities while Northampton is the worst performing city. House prices in England have fallen by an average of £8,320, £22.80 per day, to £226,788, down 3.54% from one year ago whilst in Wales average house prices have fallen by a more modest 1.73% or £2695 to a current average of £153,043. Scotland has seen the best of it over the past year with average home values almost unchanged since October last year, having fallen a mere 0.05% or £83 on average to £162,335. In England, only London and the South East have managed to record rises in property values over the past year, with the average London home now worth £409,348, up 1.1% or £4,255 from October 2010. In the South East, the average homeowner has seen a gain of £1,004 from one year ago with average house prices up 0.36% to £279,463. By contrast, homes in the North East have not fared nearly as well, dropping 7.7% or £13,136 in value over the same period. London and Aberdeen top the list of the best performing cities as the only cities in Britain to record a rise in average house prices over the past year. In London average property prices have gained 1.1% and in Aberdeen they have climbed 0.3% during the last 12 months. At the other end of the scale, it's not been a good year for homeowners in Northampton or Leicester which top the list of the worst performing areas and where property prices have fallen by over 6% since last October average. The contrast between the performance of the housing market in the South East and the North East over the past 12 months is stark. Unsurprisingly, London remains the best performing region in Britain, said Nocholas Leeming of Zoopla. We are unlikely to see much of a a rebound in the North whilst the first rung on the property ladder remains out of reach for many first time buyers due to the near impossible task of securing a deposit and a mortgage, he added.
Details
Government places private rented sector at the top of the agenda
The Government has put housing to the top of the agenda - and with it, the private rented sector. The claim was made by civil servant Terrie Alafat, Director of housing growth and affordable housing at Communities and Local Government. Speaking at the National Landlords Association's annual national conference, held in Manchester at the weekend, she said the private rented sector will play an increasingly important role in providing housing and is becoming the tenure of choice. She said: "It is an exciting time for the private rented sector. Housing is definitley at the top of the Government's agenda and the private rented sector is in the middle of all of that. We know that demand is continuing to grow and the sector has responded to that, expanding to house about 3.4 million households in England, which is an increase of one million since 2005. There is recognition about the flexibility of the sector. It isn't a last resort, it is actually a sector which is the choice for people who do want that flexibility, who may want to move to work. It provides housing for those who can't access other forms. We know social housing is hugely under pressure and home ownership is more and more difficult for first-time buyers. David Salusbury, NLA chairman, said: This years NLA conference was another sucess. It was encouraging to hear such positive comments from senior government level about the important part the private rented sector plays in the UK housing solution. It is vital that the UK is able to offer a diverse housing mix, and the NLA will continue to work with the Government to help provide flexible options in this time of high demand.
Details
House sales fall back as rental demand climbs
House prices in England and Wales slipped below the £160,000 mark the Land Registry has reported, as the number of house sales also fell. Confusingly, Nationwide reported this morning that house prices have risen over the last month, up 0.4% on October and up 1.6% over the last year to stand at £165,798. The average house price now stands at £159,999, a 0.9% monthly fall and the largest monthly drop since February 2009. The October figure was also down 3.2% compared with October 2010. Even in London, house prices dropped by 1.6% in October compared with September to stand at £340,408. London house prices are now just 0.3% higher than a year ago. Volumes of house sales have also decreased sharply in converse to rising rental figures. In May to August 2010, there was an average of 60,970 sales per month. In the same period this year - the last period for which transaction data is available - there were 57,177 sales on average per month, a drop of 6.2% By contrast the new homes website smartnewhomes yesterday reported that asking prices of new homes have bounced up to reach £222,620. That is 0.6% higher than in September and an astonishing 5% higher than in October last year. Commenting on the figures, Robert Gardner, Nationwide's chief economist, said "UK house prices increased by 0.4% in November, taking the annual rate of growth to 1.6%, up from 0.8% the previous month, The price of a typical home is now £165,798. House prices have remained suprisingly resillient in recent months, depsite the deterioration in the economic outlook, Buth with the UK economic recovery expected to remain sluggish well into 2012 house price growth is likely to remain soft, with prices moving sideways or drifting modestly lower over the next 12 months.
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Bury has been named as the leading property sales hotspot in England and Wales
Home sales in northern towns have been escalating significantly over the first six months of 2011, it has been found. According to new research from Halifax, the region is home to the four areas that witnessed the largest rises in residential property purchases across this time. These were Leigh, Rugeley, Houghton Le Spring and Bury, the latter of which experienced a 44 per cent jump and emerged as the number one dwelling sales hotspot in the nation. Suren Thiru, housing economist at Halifax - which is a division of Bank of Scotland - said: "Many of the top performing towns are in the north, reflecting a reversal of 2010 when the housing market in southern England outperformed the north." The industry expert noted a number of locations in England and Wales have seen marked rises in property sales of late, adding the housing market in these places have been helped by relatively favourable levels of affordability.
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Ordinary working families are struggling to afford average private rents
Ordinary working families are finding it difficult to keep up rental payments across England, new research has indicated. Carried out by Shelter, the study revealed these average costs are unaffordable in more than half (55 per cent) of the country's local authorities. According to the investigation, the majority of these regions are seeing typical payment demands from private landlords that are more than one-third of the typical take-home wages for the areas. The charity stated it would like to see the government take further action to help stabilise the market and help bring the sums being paid by tenants down to workable amounts. Campbell Robb, chief executive of Shelter - which was founded in England in 1968, before being established in Scotland two years later - commented: "With huge differences in affordability across the country, there are now worrying signs that families are likely to be displaced by our out-of-control rental market."
Back To Main
There is increasing interest in the buy-to-let housing market
There has been an increase in buy-to-let mortgage applications. This is according to figures from Paragon Mortgages, which found the third quarter saw a 3.1 per cent rise in those looking for the product. Some 43 per cent of intermediaries discovered that their buy-to-let business levels were on the up during this three month period. Of these, 12 per cent said activity hiked by more than ten per cent, while 13 per cent said the swell was between six and ten per cent. John Heron, managing director of Paragon Mortgages, stated: "It is positive to see that buy-to-let accounted for a growing percentage of intermediaries' overall business levels during the third quarter." He added it is important people continue to support the industry due to the pressure currently on the private rented sector. It comes after research by Shelter found that average rental costs are unaffordable across 55 per cent of local authorities.
Back To Main
Demand in the letting sector is outstripping supply
Letting demand is increasing by so much that the private rental sector is nearing capacity. This is according to the Associtaion of Residential Letting Agents (Arla), which found 74 per cent of agents think demand is outstripping supply. London and the south-easty are the two locations where the situation is at its worst, while the average stay is now 19 months. Tim Hyatt, president of Arla - which was formed in 1981 and has 3,500 member offices throughout the UK - noted it is not feasible to expect the rental sector to prop up the housing market. "There is a finite amount of rental property and unless both housing supply and mortgage availability improves then renters will find that their options in the market are reduced," he added. Mr Hyatt continued by saying the government is not doing anything to encourage more landlords into the market. Because of this, he observed the quality of housing stock being offered could decrease.
Back To Main
The third quarter saw demand for private sector property continue to climb
A notable increase in tenant demand for private sector property was seen during the third quarter of 2011, new research has shown. Carried out by Paragon, the study revealed 44 per cent of landlords saw such movement over the three-month period, while just four per cent claimed it had declined. In addition, 49 per cent of those questioned said they expect the trend to continue upwards over the next 12 months. Nigel Terrington, chief executive of Paragon-which unveiled its first mortgage product for residential property investors in the middle of the 1990s - observed he is not suprised that tenant demand is on the increase in this field, due to the pressures currently weighing down on the UK housing market. The Industry figure stated: "More people than ever before are relying on the private rented sector so it is positive to see that landlords are looking to invest in their portfolios."
Back To Main
Tenants are wary to move in case they cannot find a new flat
The number of new tenancies has been at record levels for the past year but the PRS may finally be running out of space to cater for tenant demand. The number of agents from ARLA's 6,000 members across the UK stating that there are more tenants than properties has reached the highest level since records began. 74 per cent of respondents believe that demand is outstripping supply, as has been the case for the past four quarters. The increase in demand is particularly acute in London and the south east and suggests that there is insufficient supply of property to meet tenant demand. The survey also demonstrates that the periods in which tenants are staying in their properties has increased to a record high of 19 months, as tenants are wary of trying to find a new property in such a competitive market. The number of new tenancies signed up by agents has risen rapidly in a consistently upward trend since 2001. But this figure has remained consistent at 34 new tenants every month per branch throughout 2011 after record numbers of new renters entered the market in 2010. ARLA's member agents believe that this may be because there is simply a lack of desirable property on the market to entice new renters as the PRS finally feels the strain of supporting the UK's housing slump. Tim Hyatt, president of ARLA, said: "The UK cannot rely on the rental sector to support the housing market in perpetuity. The reality is that there is a finite amount of rental property and unless both housing supply and mortgage availabilty improves then renters will find that their options in the market are reduced." "The Government is doing little to encourage landlords to invest in new properties therfore we are running out of quality stock to offer to tenants. This is reflected in rent increases and a lack of choice for consumers. "Within such an intensley competitive market, we would advise tenants and landlords to seek the best possible advice from agents as there will be those that seek to exploit this situation. Egaging with an ARLA-licensed letting agent is one way to protect your assets guard against this and guard against unethical operators." Ian Potter, operations manager of ARLA, added: "Although the Prime Minister has announced plans to re-instate Right to Buy and new funds to finance new build, we would query how many properties within the social sector are blocked. This can be either by elderly tenants who do not want to leave the 'family home' or the economical poor who, even with Right to Buy, will struggle to finance a purchase. How many properties will have to be sold to finance each new build?
Back To Main
The Private Rental Sector is falling behind Green standards
More than a third (35%) of UK landlords are unaware of the energy performance of their properties, according to our latest research. More than one in six landlords (17%) believed that their properties fell into the minimum category of energy efficient performance, the F & G Band of the Energy Performance Certificate (EPC). From 2018 under the Governments Green Deal, the rental of properties performing to this level will be banned through the minimum efficiency standard. We believe that with the large influx of consumers using the PRS as an alternative to buying, landlords need assistance from the Government to achieve minimum standards. Along with other professional bodies we have called for the scope and value of the Landlords Energy Savings Allowance (Lesa) to be extended. Ian Potter, operations manager of ARLA, said: "The clock is ticking for the PRS to improve its environmental performance but the investment just isn't there to ensure that this change takes place in the Government's timeframe. "ARLA has campaigned for the Government to incentivise-through tax relief- the improvement of rental properties. Otherwise it is going to be exceedingly difficult for the majority of landlords to find the funds to improve stock." While Green Deal will offer landlords access to funds many continue to have concerns over tenants reactions to finding that they have an extra payment to make along with their energy consumption. "The issues of fuel poverty among too many of the UK's households has been raised again as we approach winter," explained Mr Potter. "We urge the Government to ensure that the Green Deal is an effective solution to the crisis we will face unless the energy efficiency standards in the PRS and the UK housing stock in general can be improved." The survey of more than 1,500 landlords in June 2011 showed that the number of properties in the F & G band remained consistent with the previous quarter. The gap between prices in the north of the UK compared with those in the south have reached its highest level for years, according to the latest monthly index from Rightmove published today. Nationally asking prices increased by 2.8% but this masks two tier UK property market with prices up 4.7% to set new records in the south while in the north they have decreased by 0.7% to levels last seen over six years ago in May 2005. Average property prices in the south are now at £336,743, more than double those in the north at £164,347. Demand in London has been boosted by cash rich buyers with large deposits who are benefitting from cheap mortgage rates. Rightmove said that prices in the city are also being supported as Europe's debt crisis encourages investors to seek less risky assets. Asking prices in Kensington and Chelsea, London's most expensive district, rose 6.6% on the month, Rightmove said. The average price in the area was £1.92 million. In london all 32 boroughs saw prices rise in October. The number of homes being put on sale in the city during the month dropped 14% to 15,927 compared with October 2010, and Rightmove said a shortage of properties for sale is supporting values. "That is likely to be one of the key factors behind this month's new sellers pitching their asking at an all time high," said Righmove director Miles Shipside. Wider access to mortgages and rising asking prices are early signs of increasing demand, giving home owners some grounds for hope of a market recovery. However, the reality is that there is further evidence of the two tier twist which is dogging the return to more widespread liquidity in the housing market. While those in the affluent south may have cause to celebrate their prices being well up on this time last year, prices in the north continue to go backwards, leaving the widest price gap ever. For the average asking price of a property in the south you could now buy two average properties in the north and still have enough change left to buy new carpets and curtains. The south's ability to perform better despite the continuing global financial crisis and resultant credit squeeze is further highlighted by property coming to the market at all-time price highs in both the London and South East regions. London's £450,210 is 2.6% higher than the previous record set in June this year, while the £317,055 seen in the South East is 0.2% up on the previous high in May 2008. Existing home owners in the highest priced regions are seeing the value of their bricks and mortar increase even further, though it is at the expense of buyers who are faced with the highest ever asking prices,said Miles Shipside, Director of Rightmove. Those trading up will benefit from already being on the housing ladder, though the gap to trade up to the next rung is a bigger financial leap when prices rise like this and desirable homes are in short supply. Those who are not property owners, such as first time buyers or those taking an ownership break in the rented sector, will either have to spend more or compromise on what they can afford, he added. Compared to the beginning of the credit crunch four years ago, prices of properties coming to the market have risen by 5.4% in the south but have fallen by 9.6% in the north. In the last year, sellers coming to the market in the north have on average reduced their asking prices by 2.6%, while those in the south have felt able to put them up by 3.9%. Price decreases usually result when negative sentiment, influenced by uncertainty around employment and tightening of finances, rises. of the seven UK regions with the highest unemployment levels six are in the north, so employment concerns, especially in the public sector, will be exerting downwards pressure on prices and activity in many northern areas. This will be exacerbated by lenders favouring buyers with higher deposits, where the less affluent north also fares poorly. There is quite a simple formula to generate activity in the housing market, and access to finance through the ability to raise a substantial deposit and a secure job to fund repayments are the key variables. If prices are perceived to be rising then buyers are afraid that their dream home could move out of their reach unless they act quickly. These drivers of higher volumes of transactions and more buoyant conditions are more prevalent in the south, said Shipside. With mortgage approvals recovering to levels similar to two years ago, it seems that owners in London are enjoying the biggest growth in equity and should be feeling positive about trading up. However, there are signs that the distance to the next rung of the ladder may be getting too high for some in the capital as the number of new sellers coming to the market is 13.9% down compared to this time last year. Low rate mortgage deals will only benefit those with the requisite high deposits, and at the moment the best equity growth has been seen in the London market. With record prices in the capital, some will be priced out of the best areas and will either have to stay put or look for value further afield. If they are looking to move to the north of the country, the growing price gap will let them buy a lot more house for their money.
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Property industry welcomes transfer of planning power in the UK
The British Property Federation has welcomed the largest ever transfer of planning power from Whitehall to local communities in its response to the consultation on the draft National Planning Policy Framework (NPPF). The draft NPPF puts local plan making at the heart of the planning system, meaning for the first time that democratically elected local authorities, rather than unelected regional quangos, will have the final say over what development should take place in their areas. Under the proposals, a planning application would only be judged against the principles set out in the NPPF in the absence of an adopted core strategy, giving local authorities a strong incentive to plan positively to meet the needs and aspirations of their area while paying full regard to the principles of sustainability. Currently almost 70% of local authorities do not have an adopted core strategy, seven years on from the legislation instructing them to do so. The extra powers that will be given to communities are welcome, but with power comes responsibility. Although resources are stretched, preparing and maintaining an up to date core strategy should be seen as one of the most important functions of any local authority. For whatever reason most local authorities haven't produced a strategy. At the very least the NPPF should incentivise them to prepare one, said Liz Peace, chief executive of the British Property Federation. In its response the BPF again reiterated its support for the changes, believing they should lead to a framework which will be clear and succint, help to create urgently needed jobs and homes and take into account the principles of sustainability. The BPF also suggests that there should be an explicit reference to a brownfield land first policy to help allay concerns expressed by green groups that it would lead to the despoliation of the countryside. We do not believe that the draft NPPF seeks to undermine environmental concerns but if greater clarification would allay these fears then we would be happy to see some changes. We want to see as much new building as possible take place on Brownfield land, accepting that in some cases Brownfield land may be of greater environmental value that Greenfield sites,'explained Peace. The BPF welcomes the presumption in favour of sustainable development and believes that although it is not the radical change some have claimed, it will produce better outcomes for local authorities, communities and the development industry. While the presumption is an important aspect of the emerging NPPF, we do not see it as marking a radical change to the existing planning system. The crucial point, which so many of those attacking the draft NPPF have ignored, is that the presumption should not be exercised in a vacuum but within the context of a local plan drawn up by an elected local authority following extensive consultation with their local community, said Peace. The BPF said that the presumption would help local authorities plan positively for growth, but would not mean that those without a plan would find unwelcome and inappropriate development thrust upon them. The suggestion that there is no up to date plan then anything goes is an inaccurate interpretation of the government's proposal. If an up to date local plan is not in force, then decisions about planning applications will be made in accordance with the principles set out in the draft NPPF, added Peace. She also explained that the BPF believes that the definition in the NPPF is widely accepted, but is happy to agree to a different form of words if this would allay the fears of environmentalists. The definition of sustainable development in the draft NPPF uses the classic Brundtland definition and talks appropriatley about balancing economic, social and economic considerations. The Brundtland definition has the merit of familiarity. However, we recognise that it was designed to cover a wide spectrum of issues relating to the development of nations rather than built development perse and we are not wedded to this definition if a better form of words can be found, she added. Malcolm Chumbley, head of UK Development Agency, Cluttons, said that the government must not succumb to the pressure being applied by voices of objection which do not represent the views of the majority. At the moment, developers are in limbo, and this cannot continue if we are able to tackle the housing crisis we are facing. The time for action has come, and we need to see viable plans to house the nation implemented. The alternative is a crisis which will freeze the house building sector and cripple UK growth, he explained. We must recognise that for our country to prosper we need to see change. Now that the consultation period is over, we are keen to see this delivered within a sensible and stable framework. Brownfield land should continueto take priority over Greenfield sites for development, and if local authorities and the government can proactively work together to ensure suitable space is brought forward for housing, we can take the first step to solving one of the nation's most concerning problems, he added.
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Average UK property has lost £7,500 in value in the last 12 months
The average residential property in the UK has seen its price drop £7,500 in the last 12 months, according to new research. The average price is currently £219,243 down 3.2% in the last year, research from property website Zoopla shows. London and the South East are the only regions to record rises over the last year with London and Aberdeen coming out as the best performing cities while Northampton is the worst performing city. House prices in England have fallen by an average of £8,320, £22.80 per day, to £226,788, down 3.54% from one year ago whilst in Wales average house prices have fallen by a more modest 1.73% or £2695 to a current average of £153,043. Scotland has seen the best of it over the past year with average home values almost unchanged since October last year, having fallen a mere 0.05% or £83 on average to £162,335. In England, only London and the South East have managed to record rises in property values over the past year, with the average London home now worth £409,348, up 1.1% or £4,255 from October 2010. In the South East, the average homeowner has seen a gain of £1,004 from one year ago with average house prices up 0.36% to £279,463. By contrast, homes in the North East have not fared nearly as well, dropping 7.7% or £13,136 in value over the same period. London and Aberdeen top the list of the best performing cities as the only cities in Britain to record a rise in average house prices over the past year. In London average property prices have gained 1.1% and in Aberdeen they have climbed 0.3% during the last 12 months. At the other end of the scale, it's not been a good year for homeowners in Northampton or Leicester which top the list of the worst performing areas and where property prices have fallen by over 6% since last October average. The contrast between the performance of the housing market in the South East and the North East over the past 12 months is stark. Unsurprisingly, London remains the best performing region in Britain, said Nocholas Leeming of Zoopla. We are unlikely to see much of a a rebound in the North whilst the first rung on the property ladder remains out of reach for many first time buyers due to the near impossible task of securing a deposit and a mortgage, he added.
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Government places private rented sector at the top of the agenda
The Government has put housing to the top of the agenda - and with it, the private rented sector. The claim was made by civil servant Terrie Alafat, Director of housing growth and affordable housing at Communities and Local Government. Speaking at the National Landlords Association's annual national conference, held in Manchester at the weekend, she said the private rented sector will play an increasingly important role in providing housing and is becoming the tenure of choice. She said: "It is an exciting time for the private rented sector. Housing is definitley at the top of the Government's agenda and the private rented sector is in the middle of all of that. We know that demand is continuing to grow and the sector has responded to that, expanding to house about 3.4 million households in England, which is an increase of one million since 2005. There is recognition about the flexibility of the sector. It isn't a last resort, it is actually a sector which is the choice for people who do want that flexibility, who may want to move to work. It provides housing for those who can't access other forms. We know social housing is hugely under pressure and home ownership is more and more difficult for first-time buyers. David Salusbury, NLA chairman, said: This years NLA conference was another sucess. It was encouraging to hear such positive comments from senior government level about the important part the private rented sector plays in the UK housing solution. It is vital that the UK is able to offer a diverse housing mix, and the NLA will continue to work with the Government to help provide flexible options in this time of high demand.
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House sales fall back as rental demand climbs
House prices in England and Wales slipped below the £160,000 mark the Land Registry has reported, as the number of house sales also fell. Confusingly, Nationwide reported this morning that house prices have risen over the last month, up 0.4% on October and up 1.6% over the last year to stand at £165,798. The average house price now stands at £159,999, a 0.9% monthly fall and the largest monthly drop since February 2009. The October figure was also down 3.2% compared with October 2010. Even in London, house prices dropped by 1.6% in October compared with September to stand at £340,408. London house prices are now just 0.3% higher than a year ago. Volumes of house sales have also decreased sharply in converse to rising rental figures. In May to August 2010, there was an average of 60,970 sales per month. In the same period this year - the last period for which transaction data is available - there were 57,177 sales on average per month, a drop of 6.2% By contrast the new homes website smartnewhomes yesterday reported that asking prices of new homes have bounced up to reach £222,620. That is 0.6% higher than in September and an astonishing 5% higher than in October last year. Commenting on the figures, Robert Gardner, Nationwide's chief economist, said "UK house prices increased by 0.4% in November, taking the annual rate of growth to 1.6%, up from 0.8% the previous month, The price of a typical home is now £165,798. House prices have remained suprisingly resillient in recent months, depsite the deterioration in the economic outlook, Buth with the UK economic recovery expected to remain sluggish well into 2012 house price growth is likely to remain soft, with prices moving sideways or drifting modestly lower over the next 12 months.
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