Category Archives: Affordable and Social Housing

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6 Apr 2017

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Affordable and Social Housing, Austerity cuts, Developers/ Development, EDDC

Just as EDDC forms a housing development company …

“A slowdown in housebuilding last month dragged down activity in the construction sector, adding to concerns that the economy may be losing some momentum.

The Markit/CIPS purchasing managers’ index for construction in March dropped to 52.2 from 52.5 in February, falling short of forecasts. Although the index was still above 50, indicating growth, economists described the data as disappointing.

“The construction sector remains at the sharp end of the decline in corporate confidence and the renewed squeeze on households’ real wages, both of which are consequences of the Brexit vote,” Samuel Tombs, chief UK economist at Pantheon Economics, said. “We continue to expect the construction sector to tread water this year.”

Signs of a slowdown in housebuilding will come as a setback to the government, which announced a white paper last month to help to boost new homebuilding and to fix what it called Britain’s “broken” housing market. The country is building about 100,000 fewer homes than the 250,000 it needs annually, which is helping to drive up prices.

The PMI’s sub-index on housing dropped to 51.7, its lowest level since August 2016.”

Source: Times (paywall)

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4 Apr 2017

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Affordable and Social Housing, Developers/ Development

Cambridge: a better class of housing protest

“A development of luxury homes in Cambridge has been daubed with graffiti – written in Latin, of course.

Vandals spray-painted the new five-bedroom river-front houses with the words Locus in Domos Loci Populum.

Locals have said the messages, which appear to be a protest against the development, could “only happen” in the university city.

The homes, in Water Street, Chesterton, priced from £1.25m are on the site of an old pub.

Cambridge University Professor of Classics, Mary Beard, said: “This is a bit hard to translate, but I think what they’re trying to say is that a lovely place has been turned into houses.”

http://www.bbc.co.uk/news/uk-england-cambridgeshire-39490537

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2 Apr 2017

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Accountability, Affordable and Social Housing, Developers/ Development

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Decent housing is a necessity … but …

Letter in Guardian:

“There is a lack of political will to fix our broken housing market,” says your leader (28 March). In fact, there is political will not to fix it, because to offer any degree of stability to today’s nascent and growing families would need more than “flatlining” house prices; it would need prices to fall back to a realistic multiplier of local earnings, which is something this government will not have, as evidenced by the outrageous shovelling of public money to development-sector shareholders through Help to Buy.

There should, as you say, be public control over development land, and greater security for tenants, including rent control. You could add penal taxing of vacant property; a separate-use class for second homes; and the taxing of inherited property wealth which continues to widen social division.

But none of this will happen until Generation Rent is sufficiently populous to be electorally threatening and plausible politicians are putting its case. On present indications, that won’t be in time for the 2020 election (and there won’t be one sooner because the Tories are comfortable with a derelict opposition). “

https://www.theguardian.com/society/2017/apr/02/decent-housing-a-necessity-for-a-healthy-society

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2 Apr 2017

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Accountability, Affordable and Social Housing, Developers/ Development, Economy, Greater Exeter

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Greater Exeter – BOOM, BOOM, BOOM

Quote from the Vice-Chancellor of Exeter University in this week’s Express and Echo:

“… Exeter powered through the recession with almost no unemployment. Two months ago there were 68 unemployed, 4,800 jobs” …

Yet our LEP and our councils push for more and more jobs.

Without the infrastructure (roads, affordable housing, schools, community hospitals, dentists, doctors) to support those jobs (anyone tried getting into or out of Exeter from East Devon at peak times these days?) how on earth can this be sustained, let alone sustainable?

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27 Mar 2017

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Affordable and Social Housing, Developers/ Development, Planning System

“The government lacks the political will to fix the broken [housing] market

“If the price of milk had risen in line with average house prices over the past 40 years, consumers would now be shelling out more than £10 for a four-pint carton: a sobering reminder of just how broken Britain’s housing market is. With price increases like these, it is little surprise the number of first-time buyers relying on family loans is now at a historic high, according to new research from the Social Mobility Commission: one in three rely on family help, and the proportion of 25- to 29-year-olds who own their home has almost halved since 1990.

A world where a growing proportion of young people can only afford to buy a home with family support makes a mockery of equal opportunity. Home ownership matters in Britain: yes, as oft remarked, it is a cultural aspiration; but one that is underpinned by rational financial interests. Home ownership provides a stability and financial security simply unavailable to those who rent, thanks to house price growth that benefits owners but drives up rents, and our very weak framework of tenants’ rights.

The success of government attempts to improve housing policy should be judged by a simple indicator: price. For decades, governments have rolled out policies aimed at improving affordability and helping people to get on the ladder, but at the same time long-term house price growth has far outpaced any increase in wages. What’s gone wrong?

The biggest problem is a land market that serves landowners and developers at the expense of buyers. Land is a fixed commodity and a public good: its sale should be highly regulated. Yet our planning system delivers huge windfall gains to landowners in areas of high demand: giving agricultural land residential planning status increases its value on average by a factor of 328. Landowners sell to developers offering the highest price, who maximise profit by slowly releasing houses on to the market to fuel further price growth, skimping on build quality and affordable housing.

This is a distortion relatively easily fixed. As Shelter has argued, local authorities and public development corporations should be given the power to buy undeveloped land based on its existing value: a power widely used across much of Europe. They could then sell land on to developers who commit to building affordable housing of better quality for quick release. This should be accompanied by tax reform – council tax is a hugely regressive property tax based on property values from 1990 – and stronger rights for tenants in the private rented sector, including caps on rent rises and longer-term minimum tenancies of at least five years.

This package of reforms would slow house price growth while increasing security for renters. But it is one the government shied away from in its recent white paper: it took only the most tentative of steps towards land market reform and improving tenants’ rights. Instead it has lifted regulations on minimum home sizes, paving the way for a flurry of tiny “rabbit hutch” homes to come on to the market. It is focusing the bulk of its political capital on deregulatory planning reforms, unlikely to have much impact given that planning permission has already been granted for almost half a million homes yet to be built.

The problem is not a lack of solutions, but a lack of political will. This is an area where ministers fear their own success. What government truly wants to preside over years of flatlining house prices at the expense of relatively affluent homeowners in the south-east? Almost 10 years after the financial crisis, economic growth remains too fuelled by the consumer debt enabled by rising house prices, and too little by long-term investment. And so the charade continues: politicians tout over-ambitious house building targets while tinkering at the margins, avoiding the market intervention needed to truly put a brake on price growth. It is young people without family wealth who will pay the price.”

https://www.theguardian.com/commentisfree/2017/mar/27/the-guardian-view-on-house-prices-the-government-lacks-the-political-will-to-fix-the-broken-market

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27 Mar 2017

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Affordable and Social Housing, Developers/ Development

‘Dog kennel’ flats 40% smaller than Travelodge room!

“Hundreds of tiny studio flats, many smaller than a budget hotel room, are to be squeezed into an eleven-story block in north London as its developer takes advantage of the government’s relaxation of planning regulations.

‘Rabbit hutch’ homes should be consigned to the past, say architects
Plans for Barnet House, used by the London borough of Barnet’s housing department, reveal that 96% of the 254 proposed flats will be smaller than the national minimum space standards of 37 sq metres (44 sq yards) for a single person.

The tiniest homes will be 16 sq metres – 40% smaller than the average Travelodge room. They are legal because of government deregulation designed to promote the conversion of underused office space to help meet housebuilding targets.

Local residents have labelled the Barnet scheme “ridiculous” and “immoral”, comparing the planned homes to dog kennels.

Once kitted out with basic furniture, such as a small kitchenette, bed and wardrobe, the smallest flats will have very little room to move around. There appears to be little space, for example, for a sofa or a washing machine, unless it is stacked on top of the fridge.” …

https://www.theguardian.com/society/2017/mar/27/dog-kennel-flats-barnet-house-smaller-than-travelodge-room

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26 Mar 2017

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Accountability, Affordable and Social Housing, EDDC, Transparency

Transparency for developer viability appraisals must be published

Owl says: EDDC makes it seem that THEY decided these appraisals should be made public – but government directives, fights with the Information Commissioner and case-law have meant that they really have no option on this!

“Confidentiality
6.28 There is a strong public interest in financial viability appraisals being made available for scrutiny when relied upon to secure planning permission and, for this reason, the council will make this information publicly available.

We consider that transparency is extremely important and the public benefit of publishing all aspects of a viability appraisal will generally outweigh any potential commercial harm to the applicant.

If an applicant feels that some or all of the information should be kept confidential, then it will be necessary for the applicant to show how disclosure of that information would cause specific harm (in this context this means that ‘it is more probable than not that some harm would be caused’ – it will not be sufficient to say it might cause harm) to a legitimate economic interest.

Applicants will need to identify to the Council what the economic interest is and how specific harm would be caused to it when the viability information is provided. This view will be taken into account, and balanced against the wider public interest in disclosure, when the council makes its decision about the publication of the viability appraisal.

Click to access 290317-combined-strategic-planning-agenda-compressed.pdf

page 107

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26 Mar 2017

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Accountability, Affordable and Social Housing, Voting

Another broken Tory manifesto promise: starter homes

“The Tories have quietly ditched their manifesto pledge to build 200,000 starter homes.

The party promised to build the homes five times in their 2015 manifesto.

The manifesto promised the Tories, if elected, would “build 200,000 new Starter Homes – 20% below the market price, for first time buyers under 40.”

Later it pledged they would: “Build more homes that people can afford, including 200,000 new Starter Homes exclusively for first-time buyers under 40.”

It went on to say that at the 200,000 figure was a “clear objective” and was at the “heart” of the party’s housing plan.”

http://www.mirror.co.uk/news/politics/tories-quietly-dropped-another-manifesto-10004409#ICID=sharebar_twitter

Now THAT’S how you do spin!

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24 Mar 2017

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Accountability, Affordable and Social Housing, Audit (EDDC), Austerity cuts, EDDC, Exmouth, Regeneration

“Auditors urge government to stop ‘undeliverable’ projects”

Maybe EDDC needs to read this – a housing company with high risks, relocation prohject overspend, regeneration turning into a pig’s ear – they just don’t have the expertise or officer numbers to see these projects through to a successful conclusion – and consultants serm to make things worse not better, but with hefty bills for over-simplistic or unachievable aims.

“The government needs to drop projects it does not think it can deliver, the National Audit Office has said.

In a report published today, the spending watchdog said the civil service is being asked to manage important reforms although it has reduced in size by 26% since 2006.

The whole-life costs of projects in the government’s major projects portfolio is £405bn but departments gave themselves an average score of 2.1 out of five for their current capability in workforce planning.

Amyas Morse, head of the NAO, said although the government has plans to address skills gaps in the civil service the “scale of the challenge ahead means greater urgency is needed”.

“Government has gaps in its capability and knows it must do more to develop the skills it needs,” he said.

“Without a short-term solution to its capability gaps government must get better at planning and prioritising its activities and be prepared to stop work on those it is not confident it has the capability to deliver.”

Civil servants face increased pressures due to a rise in the number of infrastructure, capital and digital projects and the decision to leave the European Union, says Capability in the civil service.

Major projects such as nuclear plant Hinkley Point C, railway High Speed 2 and nuclear weapons deterrent Trident renewal often draw on the same pool of skills, the NAO points out.

“For example, in rail projects such as Crossrail and Thameslink, we have seen skilled civil servants performing a number of project roles or being moved to fill skills gaps for new priorities or projects,” the report says.

Departments have told the NAO they are looking for more senior leaders with specialist expertise to achieve their objectives.

They have reported a need for about 2,000 additional staff in digital roles within the next five years. Although, those responsible for the government’s digital skills believe this is an underestimate.

The report suggests the government must prioritise projects – stopping work on those it does not think it can deliver – and assess what will be needed in terms of capacity to deliver each one.

Departments need to assess the capability requirements of their ongoing operations, the spending watchdog states, and look at where they can plug capability gaps from the private sector.

The PCS union said the government’s cuts programme was behind the drop off in capability. General secretary Mar Serwotka said: “The cut first, plan later approach demanded by austerity has damaged services and left the civil service unable to cope with current workloads, let alone the major upheaval caused by the vote to leave the EU.

“While the civil service is trying to deal with Brexit, there is no let-up in the demand and need for quality public services in our communities, which is why we have said all job cuts plans must be halted immediately.”

http://www.publicfinance.co.uk/news/2017/03/auditors-urge-government-stop-undeliverable-projects

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23 Mar 2017

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Affordable and Social Housing, COVOP, DCLG, Developers/ Development, Planning System

National planning campaigners month of action

“A national group representing community groups throughout England launches its “Month of Action” in April with a big rally in Manchester on April 1st.

CoVoP, which represents more than 100 campaigning groups, was formed to protect green spaces perceived to be under threat throughout the country.
Last year CoVoP members held a “Day of Action” but this year April has been designated the “Month of Action”.

Affiliated groups throughout England will be participating in various activities and the launch event on April 1st will be in Manchester. It is expected that thousands will attend a rally organised by the Save Greater Manchester Greenbelt alliance.

Cheryl Tyler, Chairman of Community Voice on Planning (CoVoP), attacked the long-awaited white paper, “Fixing Our Broken Housing Market” as short on detail and soft on developers.

“It is very disappointing that having waited so long for a sensible document this falls far short of our hoped-for expectations. It does not address the fundamental issues people up and down the country are experiencing, leaving them vulnerable to unscrupulous developers”. She added that “members are extremely frustrated” by the lack of understanding of the concerns of communities”.

These issues include:

• Local Plans failing to take into account empty properties sometimes abandoned for years that could be put back into use.
• Permissions being granted on appeal for greenfield sites outside of local plans
• Not doing enough for urban regeneration but allowing green fields and the greenbelt to be developed preferentially.

Cheryl Tyler says “The government must listen to the voice of the people and realise that the National Planning Policy Framework requires urgent reform to rebalance the needs of communities and the interests of developers”.

For more information about CoVoP: http://www.covop.org”

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21 Mar 2017

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Accountability, Affordable and Social Housing, Councillor Cathy Gardner EDA, Developers/ Development, East Devon Alliance, EDDC

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Independent councillor points out flaws in new EDDC housing company project

Owl says: One flaw NOT pointed out is how useless EDDC is at running large projects. Knowle relocation – bungled; Exmouth regeneration – bungled; Section 106 payments – bungled and all handled with secrecy and minimal information to the public and non-Cabinet councillors, including those in their own party.

If they can’t control these projects what hope do we have of them controlling bigger ones? And as for which developers they will choose …

“A housing company that could allow council bosses to better respond to market pressures has received early support – but a Sidmouth councillor argues there are ‘huge risks’ to taxpayers that need to be tightly controlled.

Agenda papers say an East Devon District Council-owned (EDDC) company, free from red tape, could play a key role in increasing supply of homes and meeting demand when private developers fall short.

However, Councillor Cathy Gardner raised concerns that it is not a ‘local’ housing company and will in fact be able to develop anywhere in the country.

She said: “EDDC has been good at looking after its council houses, but this isn’t about developing council houses. They may decide they want to build elsewhere in the country where they can make more profit. That might be all right if it was limited to building ‘affordable’ housing here, but that’s not written into the terms.

“It needs to answer so many questions – is the company being set up to meet housing needs in East Devon or is it more about profit, because it can take that money into its general funds? Where is the money coming from to set it up? EDDC may have fantastically good intentions, but the devil is in the details.”

Cllr Gardner also voiced concerns about the ‘huge risk’ in speculating on the property market and said it is dependent on house prices remaining high.

Cabinet members backed the creation of East Devon Homes last week and officers will now prepare an initial business plan, identify the first projects and report back to the council.

If approved, the company will be financed by EDDC and any profits would come back to the authority. It could sell land to the company at market value – or potentially gift it – and then borrow money to finance projects.

The report says the company, run by a board of directors, will be able to operate on commercial terms, free of the ‘continual interference’ from central government.

Supporting the proposals, Councillor Jill Elson, EDDC’s portfolio holder for homes and communities, said: “This presents a wonderful opportunity for the council to play a more active part in the local housing market.

“We have researched the proposal carefully and fully, looked at the risks and rewards, and decided that the local housing company model is a suitable model for the council to deliver its housing ambitions.

“We are seeing high levels of demand for housing in the area and see this as a way of increasing supply consistent with the Government’s growth agenda.”

http://www.sidmouthherald.co.uk/news/eddc_housing_company_could_develop_anywhere_in_country_warns_sidmouth_councillor_1_4935216

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16 Mar 2017

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Affordable and Social Housing, Austerity cuts, Developers/ Development, Housing (local), Land Supply, Planning System, Sustainability

“UK government woos world’s housebuilders”

“The housing minister, Gavin Barwell, has told the world’s housebuilders that if they cannot find enough land on which to build new homes they can “come and see me” and he will try to help.

Barwell told developers at the world’s biggest property conference in Cannes on Thursday that he wanted to be “clear and unequivocal” that he was there to help them build hundreds of thousands of new homes to help fix the UK’s housing crisis.

“If you’ve got parts of the country where you want to build homes and you’re struggling to find land, you come and see me and I will then raise those issues with the relevant local authorities,” he told investors at the UK government’s first promotional stand on the famous waterfront in the south of France. “I don’t want people who want to build unable to do so because they can’t find the sites they want.

“That’s an offer to anyone in this room – if you’re struggling to find sites you [can] come talk to me and I’ll try and do something about it.” …

… Barwell told property industry figures that he wanted to “change the politics” of housebuilding so that local people did not automatically protest at the suggestion of new construction. The Croydon MP also vowed to have “hard discussions” with local politicians who held up development.

Barwell said he would try to make sure housebuilding projects came with fresh infrastructure investments to allow communities to cope with additional residents. He also said more needed to be done to ensure newbuild homes were of good quality and design.

“People welcome homes that are really innovative in design, or fit in with the local area,” he said. “What they don’t like are homes that look like they could have been plonked down in any area of the country.”

https://www.theguardian.com/business/2017/mar/16/uk-government-woos-worlds-housebuilders

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15 Mar 2017

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Affordable and Social Housing, Austerity cuts, Developers/ Development

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Funding for a multimillion-pound (£369 million) refurbishment of Buckingham Palace has been approved by MPs.

“[MPs] backed changes to the Sovereign Grant – the funding formula for the monarchy’s official duties – by 464 votes to 56.

The grant will increase by 66% to pay for the £369m refurbishment.

Officials say the essential work – set to take 10 years – is needed to avoid the risk of “catastrophic building failure”.

Ageing cables, lead pipes, wiring and boilers will be replaced, many for the first time in 60 years, amid fears about potential fire and water damage.

Two Labour MPs – Rushanara Ali and Dennis Skinner- were among those who opposed the move, along with 46 from the SNP.”

http://www.bbc.co.uk/news/uk-politics-39280770

The Queen pays – not a penny for the 775 room, 78 bathroom property refurbishment, which is only one of many properties she and her family occupy throughout the year.

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15 Mar 2017

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Accountability, Affordable and Social Housing, Barratt Homes, Bovis, Cranbrook, Developers/ Development, Housing (local), Persimmon, Redrow, Taylor Wimpey

Who will help people in sub-standard new build homes?

“There are rising concerns that the rush to build new homes is causing housebuilders to cut corners. Many firms have set tough targets to cash in on huge demand.

There are rising concerns that the rush to build new homes is causing housebuilders to cut corners. Many firms have set tough targets to cash in on huge demand — and meet the Government’s pledge to build 200,000 new homes a year.

Thousands of victims of poor workmanship have formed groups on social media websites such as Facebook, including Taylor Wimpey Unhappy Customers, Avoid Persimmon Homes and Bovis Homes Victims Group.

Hundreds have posted on Snagging.org — named after the jargon builders give to the task of finishing a project — citing problems such as creaking floors, scratched windows and stained carpets.

Campaign groups want a new homes ombudsman who can step in when families are let down. Buyers should also be given a chance to inspect their new-build before being handed the keys, they say.

Paula Higgins, chief executive of HomeOwners Alliance, says: ‘You have more consumer protection when you buy a toaster.

‘The industry is tilted too far in favour of developers, and the complaints system is too confusing.’

A report by the All-Party Parliamentary Group for Excellence in the Built Environment found more than nine in ten buyers report problems to their builder.

Oliver Colvile, chairman of the parliamentary group and Conservative MP for Plymouth Sutton and Devonport, says: ‘There have been too many reports of new homes that are quite simply uninhabitable.

‘We need to ensure there is a clear process whereby developers can be held to account and are responsible for correcting any below-par workmanship as soon as possible.’

Britain’s biggest house builders nearly all reported soaring profits last month. Persimmon reported a pre-tax profit of £783 million for 2016 — a 23 per cent increase on 2015.

Barratt Developments saw a 20.7 per cent rise to £682.3 million, Bellway a 36.5 per cent rise to £492 million, Redrow a 35 per cent rise to £140 million and Taylor Wimpey a 21.5 per cent rise to £733.4 million.
Bovis reported a 3 per cent fall in profits but still made £154.7 million.
Bovis has been forced to set aside £7 million to compensate buyers who have complained about the poor quality of its homes.

In January the firm was revealed to have offered up to £3,000 to buyers who moved into their houses by December 23 as it struggled to meet targets.
Sales have been boosted by the Government’s Help to Buy scheme, which has helped 100,284 first-time buyers onto the property ladder since 2013.
All the firms reported an increase in both the number of homes built and average selling prices. …

… A spokesman for the National House Building Council says: ‘We carry out spot check inspections at key stages during construction… [but] the builder is responsible for ensuring homes conform to building regulations and our standards.’

A Taylor Wimpey spokesman says: ‘We recognise that we do sometimes get things wrong, but we are committed to resolving those issues.’
A Bovis spokesman says: ‘We are putting more resource into customer care and reviewing our processes to ensure a focus on quality.’

http://www.dailymail.co.uk/money/article-4314028/Who-help-families-forced-live-half-built-homes.html

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14 Mar 2017

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Affordable and Social Housing, Cavanna Homes, Clinton Devon Estates, Developers/ Development, EDDC, Independent Councillors, Local Plan, Newton Poppleford, Planning System

EDDC Local Plan not fit for purpose as developer (and Clinton Devon Estates) challenge succeeds at Newton Poppleford

“Cavanna Homes already has outline permission for the site off King Alfred Way, but East Devon District Council (EDDC) refused its reserved matters proposals due to a lack of ‘pepper-potting’.

The Planning Inspectorate has overturned the decision, arguing the authority’s Local Plan policy – intended to encourage integration between market-rate and ‘affordable’ homes – lacks ‘substantive evidence’ on its specific requirements.

In his report, inspector Andrew Dawe said Cavanna Homes, in a joint application with Pencleave 2, had modified the distribution of the 16 ‘affordable’ homes in a way that was materially different from a previous application.

He said two sheltered housing providers were opposed to ‘pepper-potting’ and supported clustering to cut costs.

As a result, Mr Dawe said he was satisfied that an acceptable level of integration could be achieved and moved to approve the reserved matters application.

District councillor Val Ranger previously argued the importance of getting this ‘major development right’.

Responding to the decision, she said: “This just shows the Local Plan is not worth the paper it’s written on. The social housing is not dispersed throughout the site. This will only encourage [landowner] Clinton Devon Estates to continue to lobby the Government that they should be able to build anywhere in the Area of Outstanding Natural Beauty.”

An EDDC spokeswoman said: “It is unfortunate that the inspector has overturned the council’s decision on this matter, however, the extent to which affordable homes should be mixed in with market housing within a site is a grey area in planning. While the decision does not lead to the level of integration that we had hoped to achieve on this site, it is good that the inspector accepted the principle of what we were trying to achieve, and it does at least provide some clarity over what inspectors consider acceptable to guide consideration of other schemes in the district.”

http://www.midweekherald.co.uk/news/official_overrules_decision_on_40_homes_in_newton_poppleford_1_4929184

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14 Mar 2017

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Affordable and Social Housing, Bovis, Developers/ Development

More money to be made from land than building houses

“Analysts at Liberum believe both Redrow and Galliford could both pay up a little more for Bovis, but added that they may choose not to as they “earn better returns from buying open market land” …

… The analysts pointed out: “Both Redrow and Galliford Try have cited economies of scale. Merging with Redrow would create a 9,000 unit a year builder, and with Galliford a 7,000 unit a year builder (ex regeneration), meaning that the enlarged entity would be the fourth or fifth biggest builder by volumes.”

However, they added: “The merger wave of the 2000s was driven in part because builders with more scale got better terms for materials, but we wonder if this is still true as manufacturers are more consolidated and tend to have limited spare capacity – making incremental volumes less valuable to them.”

Noughties gone …

Back in the noughties tight planning and excess competition meant that land was scarce and land price inflation was running much faster than house price inflation.

It made sense then to buy large chunks of land through acquisition rather than buy it expensively on the open market.

However, the Liberum analysts noted that the land market is now benign with Steve Morgan, the boss of Redrow “himself observing that the land market is now the best it has been in 40 years.”

Therefore, a fresh wave of consolidation in the sector would probably look to be unlikely, particularly given the uncertainties opened up for the housing market by last June’s Brexit vote, with the moves for Bovis a special case.”

https://t.co/VQ2AuOQVdY

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12 Mar 2017

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Affordable and Social Housing

Cameron’s “affordable” housing target dropped by Hammond

“… the Government has also now binned David Cameron’s flagship housing policy of building 200,000 starter homes at 20 per cent below market price, championed by the former Prime Minister just last year. …

… In its housing white paper released last month the Government said it was not going ahead with rules that would force councils to make 20 per cent of all developments over a certain size starter homes – one of the key ways ministers hoped to reach the 200,000 target.

According to the white paper the Government now wants 10 per cent of developments to be what it calls “affordable home ownership” – a wider category more open to interpretation.

The starter homes policy came in for criticism at its launch after calculations showed prospective buyers would likely have to earn well above the average wage in order to consider purchasing one. …”

http://www.independent.co.uk/news/uk/politics/starter-homes-pledge-200000-housing-minister-policy-tory-manifesto-pledge-gavin-barwell-a7624841.html

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8 Mar 2017

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Affordable and Social Housing, Democracy, EDDC, Greater Exeter

“Greater Exeter”: concerns voiced

With Cranbrook pretty much now considered an Exeter suburb maybe East Devon should be voicing its concerns.

” … speaking at a [Mid Devon] full council meeting on Wednesday, February 22, Liberal Councillor Jenny Roach who represents Silverton expressed fears that Mid Devon District Council would be ceding powers.

She said: “We’re looking like we could be ceding power to this planning partnership, and I know people will shake their heads and say no, but there are several points which worry me.

“Exeter needs land and you can imagine where I sit in my ward, Exeter City Council could be looking at developing the swathe of land that is between Silverton and Exeter and similarly between Thorverton and Newton St Cyres. If you look at the East Devon side there are huge estates marching across that land, so this worries me.

“It worries me that it’s being done by degree and almost by stealth. When we went to the public to talk about the sort of governance the district wanted, they didn’t like the cabinet, but unfortunately we didn’t get the 3000 signatures we needed in that period of time.

“There are a tremendous amount of people who were not happy with the governance of this authority as it is now, they don’t like the cabinet system, and it is the cabinet system that is sleepwalking us into a unitary authority.

“I’ve seen this happen before and I would really like to know that the very least we would do is have a state of the district debate on this Greater Strategic Exeter Plan.”

Councillor Nikki Woollatt, Independent for Cullompton North added: “Members of the public may well see this as a step towards unitary. To reassure everybody, I don’t think there’s any problem with having a consultation with the public prior to ceding any powers that we have held.

“People are going to start putting two and two together and if we’re open and say we will consult, I think that would be for the benefit of the public.”

Councillor Polly Colthorpe, Conservative for Way expressed concerns regarding the name.

She said: “The name of this outfit is misleading and I do think that it would be helpful it weren’t called the Greater Exeter Strategic Plan because it makes the whole of the rest of the districts which are involved, subordinate to Exeter.

“None of those districts will want that and they don’t see it like that and I think it would be helpful if you could perhaps consider giving it another title.”

http://www.devonlive.com/council-leaders-welcome-plans-to-work-together-for-greater-exeter-strategic-plan/story-30188639-detail/story.html

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7 Mar 2017

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Affordable and Social Housing, Cranbrook, Developers/ Development

Now McCarthy and Stone not doing so well

Question: why is there no retirement housing in Cranbrook?

“Retirement housebuilder McCarthy & Stone PLC (LON:MCS) expects first half revenue to fall, reflecting a decline in sales releases and a reduction in the forward order book.

The company expects revenue in the six months to 28 February 2017 to dip to £238mln from £250mln in the year-ago period.

McCarthy & Stone said trading in the first half was constrained by a lower forward order book brought into the year, the weighting of completions from higher margin sites into the second half and a drop in sales releases.

Total legal completions during the period edged down to 866 units from 923 units.

The total forward order book, including legal completions, dropped to £418mln from £440mln, while net reservations fell to 1,084 from 1,132.

The average selling price climbed 1% to £260,000 from £257,000 and the company expects further growth as it improves the location and quality of its developments.

However, margins in the first half are expected to be lower than the previous year.

Net debt is expected to be £30mln, up from £24mln.

“We have delivered a solid performance during this half year despite the headwinds created by the lower forward order book brought into the year and the weighting of expected completions from higher margin new sites into the second half of the year,” said chief executive Clive Fenton.

“Our forward order book remains healthy and leaves us well-placed to deliver results in line with market expectations for the full year.”

Fenton said the market for retirement housing continues to be attractive due to an ageing population. He also noted the UK government’s pledge to address housing needs for older people in February’s Housing White Paper.”

https://t.co/uyoK0tIamf

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6 Mar 2017

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Affordable and Social Housing, Barratt Homes, Developers/ Development

Barratt Homes in more trouble

“Barratt has sold 172 luxury London new-build flats as rental homes, including an entire block at Nine Elms.

Here’s an unusual move by a housebuilder: Barratt Homes has bundled together 172 flats at various developments across London and sold them off as rental homes.

The housebuilder said it had sold the units to Henderson Park for £140.5m. The portfolio includes 29 units at Aldgate Place, a joint venture with British Land, 25 in Fulham Riverside and all 118 at its Nine Elms Point tower in Vauxhall, a joint venture with L&Q.

The deal is Henderson Park’s first foray into the private rented sector: Greystar will manage the homes.

David Thomas, Barratt’s chief executive, called the move an “excellent opportunity”.

“In particular the build and sale contract for an entire tower at our Nine Elms Point development enables us to deliver homes more quickly than we would otherwise.”

Back in January Barratt reported the number of sales it completed in London had fallen more than 56 per cent in the six months to the end of December, to 367 from 842 the year before.

The company said it had lowered prices and was offering bulk deals, like today’s, to shift homes in the capital.

However, last month the housebuilder reported an 8.8 per cent rise in pre-tax profits during the period, partly thanks to the fact completions outside the capital were at their highest level in nine years.

Meanwhile, figures published by Hometrack suggested house prices in the capital grew just 6.4 per cent in January, the lowest growth in four years.

At the time Richard Donnell, insight director at Hometrack, said: “When you consider that house prices in London are 85 per cent higher than they were in 2009, it is not surprising that the pace of increases is slowing toward a standstill as very high house price increases mean affordability is stretched.”

http://www.cityam.com/260324/barratt-sold-172-luxury-london-new-build-flats-rental-homes