Mayor of London Sadiq Khan has given the green light to plans for the single largest regeneration development site in the capital.
How the new scheme will look fully developed
The 10,000 new homes plan on a 180 hectare brownfield site in Barking will deliver approximately 5,000 affordable properties.
The affordable homes, located on the northern banks of the River Thames, will be available to rent and buy for first time buyers.
Khan is keen to offer more affordable homes in the capital and has agreed a scheme that includes a minimum of 35% affordable from the outset, but with provisions to raise this to 50% over time through additional investment and viability reviews.
According to propertywire.com new measures in the UK’s updated Neighbourhood Planning Bill will support more house building and will give local councils more say over housing developments, writes Richard Carr.
Will the new bill speed up the delivery of new housing?
New Housing and Planning Minister Gavin Barwell has promised that the new bill will speed up and strengthen the neighbourhood planning process by making it easier for plans to be revised if local circumstances change.
Barwell told propertywire.com: “We need to build more homes and this Bill is the first of a number of measures to deliver on that. We have already built more than 900,000 homes since 2010 and now this Bill will help speed up delivery of the further new homes our country needs and ensure our foot is still firmly on the pedal.
Developers and the construction industry are continuing to do their upmost to lift the country from the housing crisis with the latest figures revealing that new house building increased in July, up 5.6% on the previous year.
Output is increasing
The amount of orders being placed for new homes increased by a massive 25% between the first and second quarter of 2016, which is the highest increase since 1967 when growth rose to 44.1%.
A major factor in the increase was the amount of new orders being received in the second quarter of the year for private new houses, which increased by 28.2% to a level of £3.5billion. That level is the highest second quarter for nine years when, back in 2007, it was £3.6billion.
Once again, the quarter on quarter increase highlights that the gloomy Brexit predictions are yet to be realised.
Previous research shows that despite Brexit, the UK’s housing market remained strong in June 2016. A new study from CBRE, a leading commercial property adviser, indicates that sturdy economic fundamentals will support British house price growth throughout 2016.
Encouraging price growth
Property Wire writes that CBRE sees current British house value growth of 5.1% as encouraging. The commercial property adviser added that UK residential property prices should expand by an average of 3% in 2016. In the second quarter of 2016, house price growth was strongest in the Outer Metropolitan area (12.4%) and London (9.9%), but weakest in the North (1%), year-on-year.
Despite the many warnings and concerns that were raised ahead of the UK’s referendum in June about a possible collapse of the housing market, the industry has remained strong according to the latest analysis.
The majority of property planners believe that a more stable planning system would provide greater certainty for developers and communities and help get the country building again.
According to recent research from the Royal Town Planning Institute (RTPI) an overwhelming majority of planners blame decades of planning changes for their ability to work effectively and deliver new homes.
TheDelivering the Value of Planning report showed that a massive 73% of planners believe “constant changes” to planning rules have “hindered their ability to deliver good places”. Richard Carr, a property developer in the south of England, understands the problems and believes the government needs to loosen its grip on the system and make it easier for planners to deliver new developments.
Over half of respondents said that government policy changes had provided obstacles to the delivery of new homes, whilst almost 75% said that the profession had a reduced capacity to deliver.
RIBS believes that housing policy along isn’t enough to solve the UK’s problem as the demand for homes continues to outstrip the supply. They believe that as one the private and public sector can promote, enable and finance new homes and improve the final quality.
Along with the crippling shortage of homes, homebuilders have come under pressure for the standard to which new homes are being produced.
RIBS’ report said that high quality design needs to be at the heart of the solution: “Without it, we’ll be solving one problem by storing up further challenges for the future,” they said.
New PM Theresa May is believed to be considering paying Community Infrastructure Levy (CIL) directly to local residents in a bid to gain support for new developments, writes property developer Richard Carr.
Is CIL damaging house building?
The news comes after she announced proposals for cash from a scheme to share the proceeds of shale gas revenues to be handed straight to households.
The move is a step away from the first announcement in last year’s Autumn Statement when it was understood that shale revenues would go to community trusts and local authorities.
But Number 10 said that the new government has “changed the consultation to ensure a greater focus on control for local communities – including insisting on proposals to transfer funds directly to households rather than local authorities”.
The country’s lack of housing supply is coming under increasing pressure as more first time buyers enter the market, writes property developer Richard Carr.
Is there enough supply to cope with the demand?
Data from the Halifax shows that the number of first time buyers in the UK increased by an estimated 10% in the first six months of 2016 compared to the same period 12 months ago.
This year there was just under an extra 15,000 first time buyers entering the market, taking the overall figure to 154,200. That’s more than double the market low which was recorded during the first half of 2009.
Since the same period in 2012, the numbers entering the market has always exceeded 100,000, however the market is yet to better its peak of 2006 when over 190,000 first time buyers were stepping on the ladder.
Newly appointed Prime Minister Theresa May’s overhaul of the cabinet saw Gavin Barwell appointed as the new housing minister – a not so easy job in the climate!
Gavin Barwell has a tough job ahead of him
The country has been suffering through a housing crisis for the best part of half-a-decade, a problem well known to Poole-based property developer Richard Carr.
He believes that Gavin Barwell’s new role is in many ways a poison chaliced with so many challenges facing the property industry – mainly the lack of supply of new homes.
Estate agents and letting agents have welcomed his appoint and that in his role as Minister for London he will help tackle housing issues that particularly effect the capital city, but what about the rest of the country?