A new initiative to pump more money into house building has been created through a crowdfunding platform, writes property developer Richard Carr.
Poole-based developer Richard Carr has been turning plans into reality for the past three decades and recently gained approval on one his biggest projects. A £100m redevelopment of Salterns Marina hotel and harbour in Poole was approved by the local council, which will revitalise the area.
Richard is pleased to see a new way to encourage investors into the market through Intro Crowd, which offers investors the chance to buy a stake in potential housing development sites.
Investors can buy shares in companies owning the land plots for as little as £1,500.
New research has suggested that northern cities such as Leeds, Manchester and Liverpool are becoming a hotbed for property investment, writes developer Richard Carr.
Liverpool is leading a northern increase in property investment
Out of the three, Liverpool’s prime stock is experiencing a particularly strong rush, like nothing the city has seen before. Its growing residential market is attracting increasing levels of interest from high net worth investors from the south who are looking for long term deals.
Also, the city – like the rest of the UK – has benefitted from the incoming stamp duty rates which have now become active.
Analysts believe that the residential market in Liverpool has a healthy long term future with prices rising 4% annually, whilst letting prices has an annual growth of 3.46%.
Social housing has received another boost after a consortium of housing developers and investors joined forces to create a £1bn fund to build homes on local authority-owned land, writes property developer Richard Carr.
This partnership has been brought together by Kier and Cheyne Capital, Lloyds Banking Group and the Government’s Homes and Communities Agency. They hope to provide around 10,000 homes across the UK within four to five years.
The plan is purchase land from local councils who don’t have the resources to develop it. Using the councils’ local knowledge and recommendations the partnership will build an appropriate mix of houses to rent and buy.
Social Housing in the United Kingdom has receive a major boost this week thanks to £1b worth of backing from the European Investment Bank (EIB), writes property developer Richard Carr.
Boost for social housing in the UK
The EIB has teamed up with the Housing Finance Corporation (THFC) to provide £1b worth of investment which will help to alleviate shortages in affordable housing and accelerate construction of new build social housing.
The scale and size of the investment highlights the country’s social housing problem; the £1b injection represents the largest ever support for social housing by the EIB anywhere in Europe.
The 30 year long-term loan will be matched by THFC and guaranteed by the government meaning that £2b of overall investment will be available for new social housing and urban regeneration schemes by housing associations across the country.
Poole-based property developer wants clarification on CIL and s106 payments
Carr believes developers are put off by high taxes involved on developments
A relaxation in taxes would be beneficial for the industry and help the housing shortfall
Community Infrastructure Levy (CIL) and s106 payments are no longer viable property taxes according to Poole-based property developer Richard Carr.
Carr, who has worked in the industry for over 30 years, believes the taxes are seriously affecting the industry and are a factor in the current housing shortage that the country is battling with.
Expanding on the point, he said: “I’m very much for paying taxes and have done all my business life – and I believe property taxes can work and help projects such as social housing and community infrastructure if they are used correctly, however my problem is that I don’t believe they are.
“Community Infrastructure Levy is an outdated tax that developers have become disillusioned with. The line between CIL and s106 payments has become faded and clarification is need from the government to explain why they are in place.”
Currently, ministers are debating new proposals for development property tax and how it will be applied. Planning Minister Brandon Lewis is considering an overhaul of S106 payments and CIL.
Carr added: “I believe they should be abolished for 24 months on condition that the development is started within 12 months from grant; it should only be implemented on Greenfield sites that are inherently cheaper to develop.
“How can it be correct for a developer to pay £385 planning fees on a 500 square foot flat and the same for an 18,000 square foot house?”
First time buyers are benefitting from the Help to Buy ISA
The initiative, launched in December 2015, has seen over a quarter of million people open up one of the financial products. Encouragingly, more than half of those signups were made my people aged 30 and under.
The scheme allows savers to be given a maximum of £3,000 by the government to help them purchase their first home. Savers can put away £200 a month into the dedicated ISA with the government topping it up by 25%; the first bonus was paid to savers this week who opened up an account in December.
For couples aiming to save for their first home, individual accounts can be opened which amounts to a potential boost of £6,000.
Other Help to Buy schemes such as the mortgage guarantee and equity loan have also proven popular with over 100,000 home buyers involved.
Like many house builders, developers and construction firms, Richard is awaiting the verdict from the government’s Red Tape Review, which is looking into the barriers developers face in getting planning permissions approved and in good time.
Richard agrees with Belinda’s statement within her column where she states: “effective reforms are essential in facilitating the efficient and timely delivery of housing developments.”
Richard Carr hopes to see a relaxation in some of the taxes that developers are currently faced with, he believes the Community Infrastructure Levy (CIL) is outdated and should either be replaced or scrapped.