Author: tonu

• More London respondents keen to accelerate their home purchase
• High mortgage rates caused demand for homes to weaken in 2024

Almost half of UK house hunters are set to accelerate their purchase plans this year, with many fearing that prices are about to climb again, according to a survey.

Some 42% of wannabe homebuyers are speeding up their plans compared with 35% in mid-2023, the Bloomberg Intelligence study showed. In London — where homes are the most affordable they’ve been in almost a decade — the share of prospective buyers bringing their purchases forward is even higher at 47%.

“Buyers’ expectation that property values will increase in 2024 could support UK house-price growth,” BI analyst Iwona Hovenko wrote in a report. “The fear of being priced out of the market if they delay has already prompted some to act.”

Read more: London’s Sky-High Home Prices Are Most Affordable in Decade

UK households endured a tough 2023 as high interest rates and a cost-of-living squeeze sapped demand for new homes. That caused property values to decline, though fears of a full-blown crash failed to materialize as optimism grew over interest-rate cuts.

The survey is based on answers from 1,000 adult respondents belonging to the 25-68 age group with a minimum annual gross household income of £45,000 ($57,630). Conducted Feb. 7-10, the survey has a 5% margin of error.

Recap: Inflation falls to lowest level in over two years

1. UK inflation falls to 3.4% in the year to February – the lowest level in almost two and a half years
2. The slower pace of food price rises helped push down inflation, along with soft drinks, restaurants and hotels, the Office for National Statistics said
3. This effect was partially offset by petrol prices and rental costs
4. Overall, the cost of living is not falling but prices are rising less quickly than they were previously
5. Chancellor Jeremy Hunt says the “plan is working” but Labour’s Rachel Reeves calls for an election, saying “Britain cannot afford another five years” of a Conservative government
6. Inflation was running at 4% in the year to January, the same as December’s rate
7. Inflation peaked at 11.1% in October 2022 – the government pledged to halve the rate in 2023
8. The Bank of England, which has a target rate of inflation of 2%, uses the latest figure when weighing up whether to raise or lower interest rates.
   Original Post from bbc.com

Homeowners have long been warned that invasive bamboo can be more damaging to a property if left unchecked, with surveyors increasingly flagging it up as an issue when affected properties are bought and sold, forcing sellers to either take action to remove it or accept a discount on the price to reflect removal costs.

Between June and December 2023, invasive plant specialist Environet saw a 55% annual increase in enquiries for bamboo removal relating to property transactions, indicating that buyers are becoming more aware of the risks and insisting that problematic bamboo infestations are dealt with.

According to Environet, there are a ‘running’ variety of bamboo, with some already posing a threat to underground services, including pipes and drains, and there are cases where it has affected neighbouring properties.

Hardy, fast-growing and tolerant of most soil types, bamboo is popular for its screening qualities, creating privacy in overlooked gardens. Commonly planted in borders and along boundary fences, it has the ability to push through brickwork, drains, patios, cavity walls and even cracks or weaknesses in concrete.

In 2022, at a property in Hampshire, a bamboo infestation that had spread from next door exploited a weakness in the foundations of a property to emerge through the floor in the living room, hall and kitchen, resulting in the excavation of the entire ground floor at a cost of over £100,000.

Nic Seal, founder of Environet, said: “In my view, bamboo is at least as destructive as Japanese knotweed, due to the astonishing rate at which the runners grow, enabling it to spread and cause damage more quickly.

“Surveyors are flagging the issue much more frequently than they were a couple of years ago and buyers are rightly insisting that bamboo infestations are properly dealt with.

“In addition to damage to the property and garden, buyers need to consider the risk of a legal case from a neighbour if the bamboo has encroached into their property, which could be expensive to resolve.”

Sellers are legally required to declare the presence of Japanese knotweed on a property when completing the TA6 Property Information Form, but bamboo does not need to be declared. Buyers and agents are therefore advised to be vigilant for signs of the plant on viewings, for example, canes which have been cut back, or new shoots emerging from the ground. A good surveyor should flag a bamboo infestation that has running the risk of damage or encroachment, and a professional bamboo survey will determine the extent of the infestation and estimated removal costs.

Original Post from propertyindustryeye.com

The Government quietly announced population projections towards the end of January that could have major implications for the types of homes we need going forward and, in particular, the private rental sector (PRS).According to the Office for National Statistics (ONS), the UK population is projected to grow by 9.9% to 73.7 million between 2021 and 2036. That’s an extra 6.6 million people that will need a roof over their heads. The overwhelming majority of the increase – 92% – is forecast to be driven by net international migration.Immigration has long been a hotly debated issue, dividing opinion in the pub as much as in Parliament. It is now widely acknowledged that a migrant workforce is a vital component in the UK economy, so is as important now as ever before, but critics point to the impact that this has on our overstretched infrastructure.

Whatever your politics on this issue, this surge in international migration poses issues for UK policymakers and the housing market. Immigrants typically seek short-term housing solutions when they move to the country, either in the form of living with resident family or privately rented accommodation.Now look at the ONS’ household formation projections for England. These figures date back to 2020 and we expect an update from the Government next year, but they still highlight the direction of travel, which is that new households will be older and more people will live alone. This again has major implications for housing provision and demand for rented homes.Nearly two thirds, 64%, of the projected growth in households is where the household reference person (the head of the household in ONS terms) is aged 75 years or older. Meanwhile, 95% of the increase is attributable to one-person households and multiple adult households without dependent children. Again, one of the fastest-growing tenant groups in the PRS over the decade has been older people.Finally, let’s consider the type of homes we’re building. According to the Department for Levelling Up, Housing and Communities (DLUHC), just 7% of homes completed in England in the year to April 2023 were one-bedroom houses or flats, a figure that falls to just 5% by those built by private enterprises rather than housing associations. Just under two thirds of housing completions were three or four-bed properties.

So, what does this mean for the housing market? Put bluntly, not only are we not building enough homes, we aren’t producing the right type of homes to cater for future housing needs.

Frustratingly, we aren’t just sleepwalking into a deeper housing crisis, we are striding towards it with eyes wide open.

Government and policymakers know we aren’t building enough homes, but there is an apparent lack of desire or political bravery to tackle the underlying problem to address it. There have been so many Housing Ministers in recent years that they should install a revolving door into the holder’s office at DLUHC.

Our housebuilders have raised concerns about the planning system being slow and burdensome, mired in local politics and interests, for years. Yet nothing of any substance has been done and the removal of the 300,000 housing target has exacerbated the problem.

Looking at the PRS specifically, the brakes applied to the sector by the Government policies implemented in the latter half of the last decade worked. The rate of growth of the PRS has been curtailed and the number of owner-occupied homes, mortgaged or owned outright, has hit a record level according to the latest English Housing Survey.

That’s great, but owner-occupation will not be the only game in town for our future housing needs. We need to be clear with policymakers and politicians – rented homes will be an important part of the mix and those policies need to be reconsidered in the light of our shifting population demographics.

Policies need to be developed that encourage continued investment in the sector from private landlords who can quickly and efficiently react to local market needs.

Build-to-Rent will undoubtedly be part of the solution, but it will continue to complement rather than replace private landlords. I have said it before, but there is competition for capital; private landlords need a stable and fair regulatory and fiscal environment in which to operate.

As we look towards a new Government in the coming months, we urgently need a radical, holistic, realistic and deliverable plan to meet our future housing needs. We will be working with whichever Government is in place to stress this point.

Anything else is storing up major problems for future generations.

* Richard Rowntree is Managing Director of Mortgages at Paragon Bank *

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Scope of the consultation

Topic of this consultation:

This consultation contains proposed changes to the Town and Country Planning (General Permitted Development) (England) Order 2015, as amended. It covers the following areas:

• Changes to certain permitted development rights which enable householders to improve and enlarge their homes.
• Changes to the building upwards permitted development rights which enable the upward extension of a range of existing buildings.
• Changes to the permitted development right which allows for the demolition of certain buildings and rebuild as homes.
• Changes to the permitted development rights which enable the installation of electrical outlets and upstands for recharging electric vehicles.
• Changes to the permitted development right for the installation of air source heat pumps.

Scope of this consultation:

This consultation seeks views on proposals relating to permitted development rights.

We are seeking views on proposed changes to the permitted development rights which allow householders to enlarge their homes, make alterations or extensions to the roof, and construct buildings incidental to the enjoyment of the main house, such as bin and bike stores.

We are proposing amendments to certain rights that allow for the upward extension of a range of existing buildings and allow for the demolition of certain buildings and rebuild as homes. The proposed changes will increase the scope of buildings that can benefit from the right. We are also seeking views on whether the prior approval process for these permitted development rights can be simplified or streamlined to improve efficiency.

We are consulting on changes to the permitted development rights that allow for the installation of off-street electric vehicle charging infrastructure. This includes amending the rights to allow the installation of wall-mounted and upstand electrical outlets within 2 metres of a highway and the installation of larger upstands. We are also seeking feedback on whether permitted development rights should allow units for equipment housing or storage cabinets.

Finally, the consultation seeks views on proposed changes to the permitted development right that allows for the installation of air source heat pumps on domestic premises.

Geographical scope:

These proposals relate to England only.

Impact assessment and Public Sector Equality Duty:

The consultation seeks views on any potential impacts on businesses, local planning authorities and communities from the proposed measures. The government is mindful of its responsibility to have regard to the potential impact of any proposals on the Public Sector Equality Duty, and therefore views are additionally sought on whether there are any impacts arising from these measures on those with a protected characteristic.

Basic information

Body/bodies responsible for the consultation:

The Department for Levelling Up, Housing and Communities.

Duration:

This consultation will last for 8 weeks from 13 February 2024 to 9 April 2024.

Enquiries:

For any enquiries about the consultation please contact:

[email protected]

Read more for  Complete information.

Expert reaction

Samuel Lear, Associate, Charles Russell Speechlys:  “The anticipated changes under the Renters (Reform) Bill are wide-ranging and will require significant re-adjustments to existing processes.

“But the test of the success of the Bill, once implemented, will be whether it sufficiently strikes a fair balance between landlords and tenants.

“With landlords already subject to significant statutory obligations, an unintended consequence of not striking that fair balance is that landlords could decide to leave the market altogether, causing further supply issues and potentially adversely affecting tenants.”

Original Post from landlordzone.co.uk

Local residents will be protected from being pushed out of their communities by excessive short-term lets thanks to changes in planning rules.

• Planning permission will be required for future short-term lets
• Mandatory national register will provide valuable information and help ensure accommodation is safe
• Proposals will give communities greater control over future growth
• Homeowners can continue to let out their own main or sole home for up to 90 nights a year

Local residents will be protected from being pushed out of their communities by excessive short-term lets thanks to changes in planning rules announced today.

Under the reforms councils will be given greater power to control short-term lets by making them subject to the planning process. This will support local people in areas where high numbers of short-term lets are preventing them from finding housing they can afford to buy or to rent.

These changes are part of a long-term plan to prevent a “hollowing out” of communities, address anti-social behaviour and ensure local people can continue to live in the place they call home.

Meanwhile, a new mandatory national register will give local authorities the information they need about short-term lets in their area. This will help councils understand the extent of short-term lets in their area, the effects on their communities, and underpin compliance with key health and safety regulations.

Short-term lets are now a significant part of the UK’s visitor economy, and can provide increased choice and flexibility for tourists and business travellers. To recognise this, homeowners will still be able to let out their own main or sole home for up to 90 nights throughout a year without planning permission and Government is considering how to apply the register so it does not apply disproportionate regulation for example on property owners that let out their home infrequently.

Secretary of State for Levelling Up Housing and Communities, Michael Gove said:

Short-term lets can play an important role in the UK’s flourishing tourism economy, providing great, easily-accessible accommodation in some of the most beautiful parts of our country.

But in some areas, too many local families and young people feel they are being shut out of the housing market and denied the opportunity to rent or buy in their own community.

So the Government is taking action as part of its long-term plan for housing. That means delivering more of the right homes in the right places, and giving communities the power to decide.

This will allow local communities to take back control and strike the right balance between protecting the visitor economy and ensuring local people get the homes they need.

Tourism Minister Julia Lopez said:

Short-term lets provide flexibility for homeowners and give tourists more accommodation options than ever before, but this should not prevent local people from being able to buy or rent homes in their area.

The Government is committed to getting the balance right to ensure both local people and our visitor economy can thrive.

Amanda Cupples, General Manager for Northern Europe, Airbnb said:

The introduction of a short-term lets register is good news for everyone. Families who Host on Airbnb will benefit from clear rules that support their activity, and local authorities will get access to the information they need to assess and manage housing impacts and keep communities healthy, where necessary.

We have long led calls for the introduction of a Host register and we look forward to working together to make it a success.

The proposed planning changes would see a new planning ‘use class’ created for short-term lets not used as a sole or main home. Existing dedicated short-term lets will automatically be reclassified into the new use class and will not require a planning application.

The changes are part of the Government’s long-term plan for housing, unlocking more of the homes this country needs and meeting the target to deliver one million homes this Parliament, backed by £10 billion investment.

The Government also intends to introduce associated permitted development rights – one allowing for a property to be changed from a short-term let to a standard residential dwelling, and a second that would allow a property to be changed to a short-term let. Local authorities would be able to remove these permissions and require full planning permission if they deem it necessary.

Both of these measures are focussed on short-term lets, and therefore the planning changes and the register will not affect hotels, hostels or B&Bs.

Further details of these measures will be set out in the Government’s response to the consultations, including the timeline for implementation of the register, the use class and the individual permitted development rights – with the changes being introduced from this summer.

Original Post from gov.uk