Following the announcement that the government is to scrap the Help to Buy mortgage guarantee there has been a significant rise in the number of valuations for first time buyers, writes Poole-based property developer Richard Carr.
First time buyers rush to take advantage of Help to Buy mortgage
According to Connells Survey and Valuation, the number of valuations for first time buyers rose by 18.7% in September on an annual basis.
John Bagshaw of Connells Survey & Valuation believes that many first time buyers are aiming to use the scheme before it closes at the end of December, however he doesn’t think first time buyer activity will suddenly drop at the start of 2017.
Richard Carr hopes that the government are able to benefit first time buyers by building more homes as a result of removing the Help to Buy mortgage guarantee.
Yorkshire Building Society (YBS) has reignited the stamp duty debate by urging the government to reform the property tax so that it is paid for by the seller rather than the buyers, writes property developer Richard Carr.
Who should pay Stamp Duty?
The building society believes that changing the way stamp duty is paid will help first time buyers get on the property ladder and those at the bottom move up it.
YBS estimated that changing the way the property tax is paid upon completion would save first time buyers in England, Wales and Ireland an average of £3,791, whilst Londoners would save an impressive £13,171.
The building society’s findings and recommendations have been submitted formally to the government ahead of the Chancellor’s Autumn Statement, which is due in November.
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.
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.
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.
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?
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.
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”.
As property developer Richard Carr predicted, much of the post-Brexit gloom is lifting and many markets are predicting positive outlooks heading into 2017.
Brexit looks set to offer new opportunities
The fluctuations in many markets following the UK’s decision to leave the European Union are beginning to right themselves with the real estate market uncertainly appearing to be shorter lived and less severe than many investors first feared, according to new analysis.
LaSalle Investment Management’s mid-year Investment Strategy report said that the correction in real estate pricing is expected to be largely restricted in the next 18 months, whilst medium term capital inflows into real estate will only be interrupted, not reversed.
Also, besides from the country’s slightly unclear political landscape, given the UK’s ultra-low interest rate and bond yield environment, real estate yields are only expected to increase by 40 to 50 basis points by the end of 2017.
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?