In April 2016, new tax measures went into effect which were designed to curtail UK buy-to-let activity, imposing higher operating costs on landlords. It appears as though reports concerning the death of the UK’s buy-to-let sector have been greatly exaggerated, new data suggests.
Buy-to-let landlords are now “staging a fight back against government efforts to rein in” the market.
The introduction of specialist buy to let mortgages in 1996, made it easier for people to become private landlords. According to the Telegraph by 2014, one in five UK homes were owned by private landlords, with this figure expected to increase to one in three by 2032, exacerbating the UK’s ongoing housing shortage. The UK’s property supply is rising, with the number of new homes available climbing by 41% in August 2016, but even now, there is a strong shortage, forcing more people to rent rather than buy.
City dwellers could be about to experience the next generation of residential development in the next year and it’s all thanks to Yo! Sushi!
Innovation at its finest – the future of residential development
The Yo! Company which is widely recognised for its chain of sushi restaurants is venturing into residential development. There adaptable living apartments with moving surfaces and foldaway furniture is currently awaiting planning permission and if granted will potential change the face of city residential developments.
Simon Woodroffe, Yo! Company founder has teamed up with British firm Glenn Howells Architects to provide company, but high-quality accommodation for city dwellers.
Woodroffe’s residential revolution was first unveiled back in 2012 at the London Design Festival when he presented a space no bigger than a one-bedroom apartment that contained as many rooms as a two-bedroom house.
The government is being called upon by industry experts to improve the current new home building quality standard to put consumers first, writes property developer Richard Carr.
Is a new home building standard required?
Members of Parliament and a number of construction experts propose that the government sets up a New Homes Ombudsman to mediate in disputes between home buyers and builders.
The request forms a 10-part list of recommendations to improve the quality of workmanship in new homes and provide consumers with easier and cheaper forms of redress, should a problem arise.
The All Party Parliamentary Group for Excellence in the Built Environment (APPGEBE) believe UK house builders should be upping their game when it comes to developing new build properties. APPGEBE believe they should be putting consumers at the heart of their business model and that the government should use its power to promote high quality within the industry at every opportunity.
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
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.
New figures from the Office for National Statistics (ONS) show that average UK house prices recorded “strong growth” in the year to April 2016. Interestingly, the ONS recently implemented a new method for calculating average British residential property values. This means that that value of a typical UK home technically decreased significantly from March to April 2016.
Robust housing market
House price rises
The UK housing market has been recording increasingly impressive growth for the last two and a half years. The ONS’ March 2016 House Price Index, for instance, illustrates that average UK house prices expanded by 9% in the year to March 2016, rising from a growth rate of 7.6% in the 12 months to February 2016. In March, the ONS put the typical British residential property value at £292,000.
Everybody recognises what they look like, the brightly coloured huts that stand in rows on beaches up and down the country.
Beach huts are generally used for shelter or changing facilities, however a development company in Torquay is changing the game and are currently producing six to value of £2.2m!
Interior shot – Torquay beach hut
So, why are they worth £2.2m? This image of the interior right provides a good clue.
The luxurious beach huts are being built at Torquay’s upmarket Cary Arms and are part of the de Savary family’s £4.5m development plans for the boutique hotel which includes new suites and a spa.
It’s often that beach huts get valued, however when completed it’s expected that they will be the most expensive in Britain, offering guests some of the best sea views in the land. Downstairs will feature a large lounge area which leads out on to a decked area under a canopy.
The government pledged in the recent Housing and Planning Bill that it would build a million new homes by 2020, a target that property developer Richard Carr felt was slightly ambitious.
Is the government’s target achievable?
However, land agent Aston Mead has hit back at doubters claiming that the target is based on current figures and is a reality.
In contrast, a recent survey of owner and directors of 389 house builders across England found that a small majority (51%) thought that the target would not be met.
Current output of homes is increasing rapidly, with build rates on large sites doubling since 2010. There were more than 180,000 new homes delivered in 2014/2015, with this year’s figure expected to be higher still.
Salterns Marina in Poole is set for a £100m upgrade after the council gave property consultant Richard Carr’s plans the go-ahead.
How Salterns Marina might look
The redevelopment will change the face of the Marina with a brand new seven-storey development overlooking Poole Harbour, a five-star hotel and 73 luxury apartments being developed on the site of the old hotel.
Richard Carr has acted on behalf of Salterns Marina to put together the application and has previously said: “They believe that the time has come to give Poole a world class marina, a new hotel, spa and a high quality restaurant overlooking our magnificent harbour.”
Carr also revealed that he is in negotiations with the owners of the iconic popular restaurant in London’s West End, the Ivy, about potentially opening rooftop branch at the new building which is set to replace the Harbourside Hotel.
96% of local councils in the United Kingdom have claimed that their need for affordable housing is severe or moderate and have called upon the government to do more to tackle affordable housing prices, writes property developer Richard Carr.
72% of councils think the National Planning Police Framework (NPPF) hinders building of affordable housing
96% of councils say that their need for affordable housing is severe or moderate
7% think starter homes will help address affordable housing
“With 96% of councils describing their need for affordable homes as severe or moderate, and 89% worried that the extension of Right to Buy will lead to less affordable homes, it is clear that there is a real crisis,” Kate Henderson, chief executive of the TCPA, told propertywire.com.