In which areas should new housing be prioritised?

The Housing and Finance Institute (HFI) has sparked a new debate into which areas in the UK new housing should be focused upon.

Investment

where-should-new-housing-be-prioritised

Where should new housing be prioritised?

Richard Carr, a Poole-based property developer, believes that investment into new housing should be spread fairly across towns, cities and counties in the UK. The Housing and Finance Institute believes more money should be given to councils in districts that are leading the way as they are currently under resourced.

According to the Institute, large cities in the UK receive higher amounts of investment, however they are responsible for only around 30% of new homes.

The HFI’s report found that around 70% of new homes and granted planning permissions are in the district and unitary councils, who are facing resource problems.

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Is the UK construction industry suffering from a lack of land?

The Federation of Master Builders (FMB) has blamed a lack of available and viable land in the UK as to why small and medium sized builders are struggling to deliver new homes, according to propertywire.com.

Problems

China 57-story skyscraper

Is land really an issue for construction firms?

It’s the second year in a row that a large proportion of SME house builders have cited a lack of land for not building more homes. The FMB’s research found that two thirds of SME house builders believe there isn’t enough viable land in the UK.

Furthermore, they cited problems with the planning system and difficulties accessing finance as other challenges.

Property Developer Richard Carr understands the problems and also agrees with their complaints regarding under resourced local planning authorities, as he believes the government should be doing more to help councils.

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UK house building output continues to rise

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.

Orders

Richard Carr Uk House Builders

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.

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London set to become home to the largest residential tower in the west

Plans have been announced that could see the London Docklands area become home to the tallest residential tower in Western Europe, writes property developer Richard Carr.

Investment

Richard Carr Spire London

Spire London

The project is being funded by a leading Chinese residential developer, which is another indicator that Britain will remain strong and get stronger following Brexit.

Greenland Group revealed plans for Spire London, which is expected to stand 67-storeys high and have a gross development value in excess of £800m.

The development, which will be located adjacent to Canary Wharf, will provide a staggering 861 apartments, with 765 of them being available for private sale.

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Who is to blame for the UK’s housing crisis?

The finger has been pointed at many possible reasons, but who or what is responsible for the current state of the country’s housing shortage?

Planning

Richard Carr New Build Homes

Who is to blame for the housing shortage?

Poole-based property developer Richard Carr has worked in the industry for 30 years and has seen just about everything. He’s currently managing a number of high profile developments in the south of England including the £100m redevelopment of Salterns Marina in Poole.

New analysis produced by the London School of Economics has pointed the finger squarely at the government for the housing crisis, explaining that decades of planning policies that constrain the supply of houses and land and turn them into something like gold is to blame.

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Could the private and public sector team up to improve the UK’s housing market?

The Royal Institute of British Architects (RIBS) believes that the private and public sector could work in harmony to improve the current situation of the country’s housing sector.

Quality

Richard Carr new housing developments

Private & Public sector – a winning partnership?

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.

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New home build target must increase by 50%

The UK government has been warned that it must increase its home building target by 50% to 300,000 new homes each year if it’s going to solve the countries housing target.

Quality

Richard Carr Build more New homes

The UK needs to build more homes

Poole-based property developer Richard Carr is worried that the strain on home builders to increase their output could negatively affect the quality of homes.

According to a report published by the House of Lords Economic Affairs Committee, local authorities and housing associations should be freed by the government to build substantial numbers of homes for rent and sale.

The report has warned the government that if they fail to meet the 300,000 target then they will fail to meet the demands or moderate the rate of current house price increase.

Furthermore, the report criticises the government’s current policy which restricts local authorities’ access to funding to build more social housing by frequent changes to tax rules and subsidies for house purchase.

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How will leaving the EU affect the property industry?

With the UK voting to leave the European Union the debate has started on how cutting ties with the EU will affect differing industries. Richard Carr has been in the property market for over 30 years and has looked at the pros and cons.

Pros of leaving the EU

  • Reduction in red tape for builders
  • Increase in opportunities for UK workers
  • Reduction in regulation
  • No EU constraints

Cons of leaving the EU

  • Many construction workers are from the EU
  • Potential skills crisis

Outlook

Richard Carr image of Leeds

What affect will Brexit have upon the property market?

On the face of it, if the government can ensure that migrant workers are still able to work in the UK and they also provide extra funding to get British people into workforces then the industry willflourish.

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Construction industry defies EU referendum uncertainty

Fears that the uncertainty created by EU referendum could negatively affect markets in the UK was dispelled by the construction industry which was an almost 8% rise in contracts during May, writes Property Developer Richard Carr.

Projects

China 57-story skyscraper

Construction industry maintains strengh

According to Barbour ABI, £6.1bn worth of new contracts were awarded during May, which is 8% higher than the same month last year. The number of construction projects agreed in the UK was also over 10% higher than the same time 12 months ago.

Scotland led the way in terms of contracts awarded, with its Beatrice offshore wind farm project in the Moray Firth valued at £1.3bn.

London followed closely behind with its largest project being the £325.8m project with the Canary Wharf Group to build new office building Ten Bank Street.

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Should stamp duty charges be dropped on luxury homes?

Design and consultancy firm Arcadis has called for the country’s chancellor George Osborne to pause housing tax on high end luxury properties or risk distorting the wider market, writes development specialist Richard Carr.

Projects affected

Richard Carr's luxury home image

Kensington, London

Successive stamp duty hikes has seen buyer interest drop in the UK’s high end property market at a time when there had been a 40% rise in prime properties planned for development in London.

Many projects in development for a number of years have been disproportionately affected meaning that they delivery of affordable homes could also be put at risk.

The government appears to be giving mixed messages in relation to the market; initially they encouraged investment in prime residential property, but have changed policies mid-cycle, leaving developers in trouble.

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