UK rents to rise faster than house prices – unaffordable rents to become even more unaffordable

The pigs have sniffed out another trough:

“The Royal Institution of Chartered Surveyors has predicted that rents will increase by just over 25% in the coming years, while property values are set to grow by less than 20%.

In the three months to January, tenant demand for rental properties continued to go up. With landlords expected to scale back their portfolios in the next 12 months, tenants will have fewer properties to choose from, which is likely to push rents higher, the survey suggests.

Rics said there was a lack of new listings coming on to the lettings market for the fourth quarter in a row and its members expect this to worsen.

The past few months have seen a number of buy-to-let investors sell up, including Britain’s biggest landlord, Fergus Wilson and his wife, Judith, who declared that the days of small buy-to-let landlords were numbered after the stamp duty increase last year and other tax changes, along with tougher mortgage rules.

The Rics survey was conducted before the release of the government’s housing white paper on Tuesday, which promised encouragement for private developers to build large-volume rental flats for tenants, and more long-term “family friendly” tenancies. Campaign group Generation Rent criticised the fact that these were limited to new purpose-built private rented homes and said renters on stagnant wages needed homes costing no more than one-third of their income. …”

https://www.theguardian.com/business/2017/feb/09/uk-rents-rise-faster-house-prices-next-five-years-rics-survey?CMP=Share_iOSApp_Other

The housing white paper: Guardian nails it!

Not so long ago, the communities secretary, Sajid Javid, sounded like the scourge of the big housebuilders as he complained that current rates of housebuilding were “not good enough”. His white paper on housing upgraded the rhetoric to describe the market as “broken” but it would be hard to conclude the fix-it plan will make life uncomfortable for the likes of Barratt, Persimmon and Taylor Wimpey.

The stick that Javid has chosen to beat the big boys looks more like a twig. Developers will be forced to build on land within two years of gaining planning permission. That is a reduction from the current cut-off of three years but, given that most developers tell us they start building almost as soon they receive permission, the switch may be barely noticed.

At a push, one might say government assistance for small housebuilders could inject more competition. But, if the sight of profit margins at 20%-plus across the sector hasn’t brought forth a rush of new rivals, the problem may go deeper than a lack of official encouragement for the smaller brigades.

Javid’s greater focus seems to be funding more “affordable” homes, to be delivered chiefly by housing associations and local authorities. Since the big boys tend to be uninterested in the affordable end, they’ll be happy to let others get on with the job. Share prices across the sector rose gently, and one can understand why. The big boys can continue building at their current steady rate and their special dividends can keep flowing.”

https://www.theguardian.com/business/nils-pratley-on-finance/2017/feb/07/housing-white-paper-builders-sajid-javid

Housing White Paper: “damp squib”

The Government has finally unveiled its plans to fix the ‘broken housing market’ in a white paper spanning 104 pages.

Among lengthy reiterations of existing housing policy schemes including Help to Buy were proposals to stop developers land banking, try to speed up planning approvals and support the delivery of more homes to rent.

But some experts have already dubbed the plans a ‘damp squib’ with little hope of fixing anything.

Secretary of State Sajid Javid told the BBC Radio 4 Today programme before revealing the bill: ‘People want a decent home to buy or a decent home to rent, it’s a choice for them, we should be helping both types of tenancies.’

But Shadow Secretary of State for Housing John Healey called the paper ‘feeble’ and added: ‘We were promised a white paper; we’ve got a white flag.’

He was not alone in his disappointment. Simon Gerrard, past president of the National Association of Estate Agents, summed up how most pundits in the industry felt about this long-awaited paper.

“Today’s announcement shows that the Government is good at producing soundbites, but not realistic solutions. It demonstrates a lack of understanding of the market and what is required to fix it.

‘The schemes outlined will be discussed and debated for longer than they are implemented, with nothing new being offered. We need to simplify the system and make it easier to build homes that people want, quickly, and I am disappointed this has not yet been achieved.”

… Jonathan Manns, head of regeneration and director of planning at Colliers International, said: ‘Dig into the (*cough*) detail and, beyond the hollow and misguiding rhetoric, there are odd tweaks to the status quo.
‘Councils, we’re told, should continue to review the targets in their local plans and ensure they’re up-to-date. Hardly ground-breaking but reassuringly familiar.’

The Government is also proposing to cut the time local authorities have to approve planning applications from three years to two.

Will it help? Gerrard doesn’t think so: ‘The introduction of capping the time between obtaining planning permission and starting construction to two years is misguided. It is not the timescale that hinders building across the UK, but the planning system itself.

‘All too often, permission is granted that is simply impossible to implement because local government departments do not communicate effectively with each other.’

http://www.thisismoney.co.uk/money/mortgageshome/article-4196264/How-Housing-White-Paper-plans-affect-you.html

Yet another consultation on our “broken” housing market (yet another opportunity for developers to shaft us?)

Here is the White Paper”:

Click to access Fixing_our_broken_housing_market_-_housing_white_paper.pdf

Here is the consultation document on it:
https://www.gov.uk/government/consultations/fixing-our-broken-housing-market-consultation

This consultation closes at

11:45pm on

2 May 2017

[just before local elections …]

You can respond online here:
https://www.surveymonkey.co.uk/r/QLLWWSS

Another opportunity for the public not to be listened to, another chance for the government and developers to create loopholes.

A first thought: if “small builders” are going to be encouraged to build the cheapest houses, how do they get the economies of scale the big builders get? Well, we could charge no VAT at all on smaller, affordable house building on small sites of say 10 homes or less and LOTS OF VAT on luxury houses on big sites.

What’s that? It’s the sound of the big developer choking on their pate de foie gras whilst trying to phone the Tory party chairman? Surprise, surprise!

Land unavailability

A comment under the article on the new housebuilding “initiatives” in The Guardian today:

The impact of land unaffordability on the real economy and disposable income/savings of the majority of the residents of England …

A. 69% of the land in England is owned by 0.6% of the population.

B. 33% of the land in England is still owned by the aristocracy.

C. Most of the land suitable for housing owned by government, Local Authorities and other state bodies was used up in the post WW11 housing drive.

D. UK cities rest upon 8% of the UK land mass and house 54% of the population.

E. And what of the fabled Green Belt?

UNREAL ECONOMY Most of the land suitable for housing is in the ownership of the landbankers whether they be aristocrats, private sector groups and the like.

REAL IMPACT The current land situation guarantees that most under 35’s will only own 24 square feet of land by the end of their lives and face a life where their income will be used to mostly pay rent.”

https://www.theguardian.com/society/2017/feb/07/councils-to-be-told-to-build-thousands-more-new-homes

Housing market ” broken” says government – duh!

Owl says: funny how it took the government SO long to see the “housing market” is, and always has been, broken under their tenure.

Still, lots of developers have got VERY rich on the back of their mistakes … developers who give LOTS and LOTS of money to the Conservative Party and who basically were given the National Planning Policy Framework to write in their own image.

However, now that there is a real possibility of losing millions of votes from people in dire housing need – the “just about managing” that they must capture and keep if they want to stay in power not just feckless Labour voters – more tinkering at the edges is being offered, rather than real solutions.

What is needed is what happened after WW2: a massive government housebuilding programme – NOT developer-led.

Still, never too late …! Although Brexit now pushing up materials costs due to the devaluation of the pound coupled with a shortage of skilled labour makes this the worst of times for the government to dig itself out of a very big hole.

“England’s housing market is “broken”, ministers have admitted, as they unveil plans to build more affordable homes.

The new housing strategy for England includes forcing councils to plan for their local housing needs and giving them powers to pressure developers to start building on land they own.

Communities Secretary Sajid Javid said people want a decent home not a “false choice” between renting and owning.

Labour accused the government of “seven years of failure” on housing.
The government says at least 250,000 new homes are needed each year to keep pace with demand and local councils and developers need to “get real” to the scale of the challenge.

Mr Javid will set out the details of the housing White Paper in a statement to MPs.

Measures are expected to include:

Forcing councils to produce an up-to-date plan for housing demand
Expecting developers to avoid “low density” housing where land availability is short
Reducing the time allowed between planning permission and the start of building from three to two years
Using a £3bn fund to help smaller building firms challenge major developers, including support for off-site construction, where parts of buildings are assembled in a factory
A “lifetime ISA” to help first-time buyers save for a deposit
Maintaining protection for the green belt, which can only be built on “in exceptional circumstances”
So-called starter homes, championed by ex-PM David Cameron, will be aimed at “households that need them most” with combined incomes of less than £80,000 or £90,000 in London.

The government said there would be a change in focus from starter homes – which will be offered to first-time buyers at a discount – to “a wider range of affordable housing”.

Mr Javid will say: “Walk down your local high street today and there’s one sight you’re almost certain to see. Young people, faces pressed against the estate agent’s window, trying and failing to find a home they can afford.
“With prices continuing to skyrocket, if we don’t act now, a whole generation could be left behind. We need to do better, and that means tackling the failures at every point in the system.

“The housing market in this country is broken and the solution means building many more houses in the places that people want to live.”

Asked if ministers were abandoning their goal of increasing home ownership – an ambition of most post-war Conservative governments – Mr Javid told BBC Radio 4’s Today that the approach “shouldn’t all be about ownership”.
“It is a false choice. The reality is we need more homes, whether to rent or buy.”

With house prices now eight times average earnings and the number of affordable homes being built at a 24-year low, he said the cost of housing was the “greatest barrier to social progress in Britain today”.

Many councils, he added, had “fudged the numbers” when it came to assessing local housing needs and this had to change.

Ministers have admitted the government is behind schedule in its efforts to build one million new homes in England by 2020.

The Campaign to Protect Rural England welcomed what it said was a focus on addressing current failings rather than “meddling” with the planning system.
“We are pleased that ministers have recognised that weakening the Green Belt is unnecessary,” said chief executive Shaun Spiers. “But with 360,000 houses already proposed for Green Belt land the government needs to do much more to uphold national policy and stop councils releasing it for development.”

Labour’s shadow housing minister John Healey said: “The measures announced so far in Theresa May’s long-promised housing white paper are feeble beyond belief.

“After seven years of failure and 1,000 housing announcements, the housing crisis is getting worse not better.”

http://www.bbc.co.uk/news/uk-politics-38884601

Help to buy or help to die?

Owl thinks the “smaller homes” to encourage older people to downsize will be luxury retirement properties a la PegasusLife, which will leave luxury top-end homes available for luxury top end home buyers. “Sheltered” housing association homes or council homes (i.e. affordable sheltered housing) – in your dreams!

Just another way for developers to milk cash cows.

“Theresa May’s government will use its flagship housing strategy to make it easier for older people to move into smaller homes, in a move that could free up larger properties for families.

A policy to incentivise more quality, newly built sheltered accommodation will be included in a white paper, which also aims to break the dominance of a limited number of large housebuilders.

Councils, housing associations and smaller developers will be encouraged to build more as the government sets out how it plans to meet a target of 1m new homes by 2020. …”

https://www.theguardian.com/society/2017/feb/05/government-to-help-older-people-downsize-to-free-up-family-homes?CMP=Share_iOSApp_Other

If you don’t like these policies, we have others …

“A major shift in Tory housing policy in favour of people who rent will be announced by ministers this week as Theresa May’s government admits that home ownership is now out of reach for millions of families.

In a departure from her predecessor David Cameron, who focused on advancing Margaret Thatcher’s ambition for a “home-owning democracy”, a white paper will aim to deliver more affordable and secure rental deals, and threaten tougher action against rogue landlords, for the millions of families unable to buy because of sky-high property prices. Ministers will say they want to change planning and other rules to ensure developers provide a proportion of new homes for “affordable rent” instead of just insisting that they provide a quota of “affordable homes for sale”.

They will also announce incentives to encourage landlords to offer “family-friendly” guaranteed three-year tenancies, new action to ban unscrupulous landlords who offer sub-standard properties, and a further consultation on banning many of the fees that are charged by letting agents.

A senior Whitehall source said: “We want to help renters get more choice, a better deal and more secure tenancies.” They added that the government did not want to scare people off from renting out homes, but offer incentives to encourage best practice and isolate the worst landlords. By emphasising the rights of renters, as well as trying to boost house building, the white paper will mark a turning point for a party that since the 1980s, and the first council house sales, has promoted home ownership as a badge of success, while neglecting the interests of renters. …”

https://www.theguardian.com/society/2017/feb/04/may-abandons-home-owning-democracy-thatcher-tories

How to cure the housing shortage?

“Private builders will never meet the demand for homes. We need more social housing, denser cities and new suburbs – and those require real political will.

People often say to me, “Jonn, why do you keep ruining parties by banging on about the housing crisis?” And I always tell them that the joke’s on them, because I no longer get invited to any parties.

If I did, though, I imagine I would clear the room just as quickly as I ever did, because it’s impossible to address our national shortage of housing without addressing the worthy-but-dull issue that lies at its root: land, or, more specifically, the lack of it. There is no piece of blue-sky thinking, no big idea, that could help solve the housing crisis without explaining where we’re going to put those extra homes.

It’s thus hard to come up with a fantasy housing policy that doesn’t shatter on contact with matters of concrete (sorry) reality. Proposals that don’t even try to address the land question ascend rapidly into the realm of science fiction, whether that means Star Trek (“What if new transport technology meant we didn’t need to live near the office any more?”) or Logan’s Run (“If only there weren’t quite so many people, somehow …”).

So, let’s limit ourselves to policies that are difficult thanks merely to politics, rather than the laws of physics. Let’s imagine we had a government that was genuinely determined to solve the housing crisis. What would it actually do?

Well, it would begin by accepting that the private housebuilders were never going to solve this problem for us. The amount firms pay for land is based on the price they’ll be able to sell homes for. They’re never going to build homes at a rate that could make prices fall, for the very good reason that they’d all go bust if they did.

And so, a government set on a real solution to the housing crisis would abandon ministers’ touching faith in the power of markets. Instead, it would invest in a huge increase in social housing, loaning money to housing associations, to get them building, and allowing councils to borrow money and build homes on their patch once again. This would require a change in attitudes towards public debt, and an understanding that council housing was a long-term investment – an asset, rather than a slightly embarrassing relic of a bygone age.

This doesn’t, however, solve the question of where we’re going to put all these new houses. The standard answer to that is “brownfield” – conveniently vacant land that’s already been built on, and so won’t offend too many people if it’s built on again. But the truth is that, in much of the country, there isn’t enough of that to go round. If we’re actually going to meet demand for new homes, we have only two options: we can either build up, or build out.

Building up doesn’t necessarily mean skyscrapers. British cities, with their reliance on semi-detached homes occupying individual plots, are actually very low-density compared to most European cities. Gradually filling London with apartment blocks of the sort that line the boulevards of Paris or Vienna could go some way to meeting the city’s housing need, without turning it into the set of Blade Runner. The public sector even owns large tracts of land where we could put these new homes.

The drawback? Most of that land is occupied by homes already, in the form of existing council estates. Real world governments have shown themselves more than willing to redevelop those – but they’ve generally tried to do so on the cheap, maximising the number of private homes available at the expense of social homes, and repeatedly breaking promises to tenants.

Our fantasy government wouldn’t pull these tricks: it would guarantee social tenants’ rights to homes of equivalent size in the same area, and it would act in a way that showed that it understood these are homes, rather than simply government property for it to dispose of as it wishes. Nonetheless, it would replace some of the more crumbling and impermeable postwar council estates with new streets, filled with European-style mansion blocks rather than the cramped, magnolia, hall of residence-style that characterises most British new-builds. Such is the need for new homes that, in select areas, it would probably use stronger compulsory purchase rules to acquire land.

Increasing density in this way would allow it to increase the number of both private and social homes, creating vibrant, new mixed communities. This would probably take a bit more cash upfront than past redevelopments – but since our government has shown itself willing to invest for the long-term, this shouldn’t be a problem.

Comprehensively redeveloping the inner cities will take time – but luckily, there is an easier way to meet housing need. All around London, Oxford, Bristol and other cities in housing crisis, there is open space, often inaccessible to the public and occupied by nothing prettier than some chemical-drenched arable land. The reason we don’t build on it? Because when green belts were introduced in the mid-20th century, it just happened to be unoccupied.

Our fantasy government would recognise that a land-use policy designed for 1955 was not much use in 2017. It would take its inspiration from Copenhagen, whose “fingerplanen” has seen development take place in five rail corridors (the “fingers”) extending outwards from the city, separated by green space.

Is it time to rethink Britain’s green belt?

To that end, the government would formally review the green belt to identify areas that would be better used as the site of new communities. Around London, it would prioritise areas next to railway lines, such as that baffling open space surrounding much of the eastern end of the Central line. In smaller cities such as Oxford, it would designate new urban extensions, linked to the city centre by new tram lines. Further green belt land would be turned into public parks: surely an improvement on the inaccessible farmland that sits there now. And, to minimise public whingeing, it could even designate new green belt, to protect land in areas less plagued by demand for housing.

More social housing, denser cities, and properly planned new suburbs: in these three ways, a motivated government would be able to end the housing crisis in just a few years. It’s only a pity that a government like that seems like science fiction, too.”

https://www.theguardian.com/commentisfree/2017/jan/30/britain-housing-crisis-solved-social-housing

“Severely unaffordable housing” in Devon

“… The United Kingdom has a seriously unaffordable major market Median Multiple ranking of 4.5 in 2016 and a severely unaffordable Median Multiple of 4.6 overall.

None of the United Kingdom’s 21 major housing markets are classed as affordable according to Demographia.

Six major markets in the UK are classed as severely unaffordable including; Bournemouth and Dorset,

Plymouth and Devon,

the London Exurbs (East and Southeast England, virtually all outside the London greenbelt), Bristol-Bath, Liverpool and Merseyside, and Warrington and Cheshire. “

http://www.exeterexpressandecho.co.uk/devon-is-one-of-least-affordable-places-in-the-world-to-buy-a-house/story-30087431-detail/story.html

Bovis … creek … no paddle?

Bovis is currently constructing all over East Devon, including in large numbers at Axminster, Seaton and Cranbrook.

The company has recently seen the creation of the Bovis Homex Victims Group Facebook site:
https://eastdevonwatch.org/2016/09/08/bovis-homes-victims-group-facebook-page/

Could it be that this has also contributed to their woes?
https://eastdevonwatch.org/2016/12/23/axminster-and-cranbrook-slums-of-the-future-says-councillor-hull-whilst-councillor-moulding-says-nothing/

A City attempt to lay the foundations of a £5bn merger of Bovis Homes and Berkeley Group is on shaky ground, with Berkeley understood to have rejected the idea.

Schroders, Bovis’ biggest shareholder, wrote to Berkeley proposing an all-share merger following a difficult trading period for Bovis which claimed the scalp of its chief executive David Ritchie.

Bovis had issued a surprise profit warning at the end of 2016, saying that pre-tax profits were likely to be flat this year at between £160m and £170m, below analyst predictions of £180m, due to a slowdown in the rate of building and sales in December.

The string of events prompted Schroders to target a merger with Berkeley, which mostly builds homes in London and the South East. Bovis’ activity is also concentrated on that area.

But Berkeley sources said the company had dismissed the call, instead choosing to concentrate on growing through partnerships with the likes of the National Grid, with whom it signed a £700m joint venture to develop new homes on disused land owned by the power provider in 2014, rather than mergers.

Other housebuilders, such as rivals Redrow or Persimmon, could still be in the frame to buy Bovis, which has struggled in recent months with slowing sales of its homes amid wider market uncertainty.

Berkeley itself has not been immune to a slump in the market: last month it amended its five-year dividend plan to return some cash through share buybacks instead. It also said in December that the number of reservations for its homes had fallen by a fifth since the referendum, signalling the impact of the slowing London property market on the company.

It hit out at Government policy which it said was increasing demand rather than supply, saying while it had helped in some areas, it was having “a negative effect on the capital”.

Schroders declined to comment on the terms of its proposals.”

http://www.telegraph.co.uk/business/2017/01/22/merger-bovis-berkeley-shaky-ground/

Greater Exeter: only 5 EDDC councillors get decision-making powers -and its another forum!

“A joint informal advisory reference forum is set up consisting of 5 councillors each from Devon, East Devon, Exeter, Mid Devon and Teignbridge to consider and make comments on draft plan proposals before they are formally considered by each council.”

AND it links seamlessly into Local Enterprise Partnership plans … none of which have been put out for public consultation:

“Role of the joint plan and relationship with other plans

o Setting out the overall scope of the plan and how it can support other related strategies such as the Local Enterprise Partnership’s policies and the results of the devolution discussions. How it relates to the existing and proposed new local plans prepared by each council and with Neighbourhood Plans. Duty to cooperate discussions.”

AND it is all-encompassing:

Plan Strategy
o Description of the overall strategy which best meets vision and the challenges facing the area. Covering the big ticket themes of where and how many homes and jobs are needed, how key environmental assets will be protected and enhanced and the need for new and improved infrastructure.

Strategic Settlements and area strategy and functions

o The implications of the vision and strategy for each of the main settlements and the
plan area as a whole. Setting out the key planning functions and role of these.  Strategic Development Proposals
o The strategic development sites allocated in this plan to meet the strategy and other area’s needs. Implications for the remaining district/city level local plans’ allocations.

Strategic Policies

o Homes – setting the strategic targets for the objectively assessed need for housing,
and considering the need for specific types of housing (including affordable, student,
custom build and accessible homes).
o Economy – considering forecast economic performance and how the plan can
guide/improve. This is likely to include consideration of particular economic sectors (and in particular the evolving role of the knowledge economy and innovation), the protection of key economic assets across the whole plan area.
o City and Town Centres – giving the overall approach to the need and best locations for retail, leisure and other “main town centre uses” taking account of the existing “hierarchy” of town and city centres in the area.
o Environment – policies concerning issues including climate change, air quality, flooding, protection of European sites, other strategic landscape and biodiversity matters and heritage protection.
o Community infrastructure – policies and proposals for the provision of community facilities and infrastructure, including information, smart systems and broadband.
o Quality of development – improving the design of new development, including consideration of density and space standards.
 Implementation, delivery and monitoring – proposals to ensure that policies and proposals happen on the ground and how their success will be measured.”

AND ordinary councillors (including Tories) will be frozen out of decision-making:

It is recognised that it might be difficult for the wider council membership to input into a joint plan through the normal committee/council channels.

It is therefore proposed that member input is provided for in two additional ways.

Firstly, it is proposed that a joint informal advisory reference forum is set up, consisting of 5 councillors from each of the five authorities (total 25 members). There would be an expectation that the councillors from each authority would be politically balanced. This joint forum would consider plan drafts and comment upon them before they are finalised and presented to the meetings of the individual councils. Secondly, officers will run member briefings before each formal committee cycle to allow all councillors to review and comment upon draft plan contents and proposals. This would help to ensure that councillors’ views can be considered before proposals are finalised.

Members should note that there is a separate proposal to set up a Greater Exeter Growth and Development Board as a formal joint committee to consider economic and other related matters across the area. This has been agreed in principle by Exeter and Teignbridge and will be considered by East Devon and Mid Devon (note that Devon County have confirmed their wish not to be involved in such a joint committee at this stage, although this does not undermine their commitment to the GESP). It is envisaged that the member steering group referred to above would have a role reporting on plan progress and strategy to the joint committee. This does not affect the recommendation referred to above to prepare the GESP under Section 28.”

Click to access 170117-combined-strategic-planning-agenda-compressed.pdf

Massive social housing cuts predicted

To be replaced no doubt by unaffordable affordable housing – where housing benefit will go directly to landlords.

“More than 120,000 socially rented homes will be lost in the next four years, according to a forecast published today by the Chartered Institute for Housing.

The CIH’s projection follows the release of figures from the government last week, showing that over 120,000 homes available at social rent have already been lost between 2012 and 2016.

If the forecast is accurate, it would mean a loss of almost 250,000 socially rented homes – 6% of social housing stock – between 2012 and 2020.

According to the CIH projections, 72,000 of the social rent losses between 2017 and 2020 will be from local authority housing, and a further 50,000 will be from housing associations.

The organisation expects the housing to be lost through demolitions, the sale of high-value homes, sales through the Right to Buy scheme, and conversions of properties from social rent to more expensive “affordable” rent. The projected number of new social rent builds from 2017 to 2020 is 14,000 in total. …”

http://www.publicfinance.co.uk/news/2017/01/social-rented-housing-stock-reduce-120000-cih-predicts

Petition – take back local control of housing development

Petition to Government

Give communities back the right to decide where houses are built.

This petition calls for a parliamentary debate on government Housing and Planning policy over building on greenfield land and seeks community right of appeal on planning decisions and the removal of the presumption in favour of sustainable development.

Too many communities are now forced to accept large housing developments seeing the irreversible loss of valuable greenfields without the right of appeal. The failure of government planning policy has resulted in the loss of valued countryside and agricultural land and leaves communities forced to grow too fast without appropriate infrastructure. Major changes to planning legislation are required to protect established communities across the UK and deliver the right housing in the right places.”

Sign at:
https://petition.parliament.uk/petitions/177333

Greenbelt at risk – again

“… The Government has vowed to build one million homes by 2020 which equates to 200,000 a year.

“Don’t kid yourself that this will make properties more affordable,” said Henry Pryor, independent buyer. “The undersupply that we have been racking up means that if we had the million homes by the end of this parliament it still would not be enough.” He recommended the reclassification of the greenbelt.

“We need supply to keep up with demand but it must be where people need it, while trying to avoid the situations where house price growth becomes unsustainably high and out of kilter with wage growth,” JLL’s Whitten concluded.”

http://www.telegraph.co.uk/property/house-prices/high-time-high-rise-solve-nations-housing-affordability-crisis/

EDDC to see drop in income which may affect relocation funding

EDDC has been relying on the New Homes Bonus ( which can be spent on anything) to partly fund their relocation expenditure:

“Planned changes to the New Homes Bonus will have an adverse effect on communities, shrinking funding and reducing the incentive for new housebuilding, the District Councils Network has warned.

Responding to the provisional local government finance settlement for 2017-18, the DCN said its members will see a 5.2% cut to core spending power. This is compared with average cuts of 1.1% across local government, it stated.

Introduced by the coalition government, the New Homes Bonus aims to encourage local authorities to grant planning permissions for new housing in return for additional revenue.

In the settlement, the government outlined plans to divert funding from the NHB scheme to upper-tier councils to fund a growing crisis in adult social care.

DCN chair Neil Clarke said the plan essentially “robbing Peter to pay Paul”. It will strip out £75m from district council revenues and “risk destroying the link between economic growth and the funding of local public services”, he said.

Clarke added: “It is clear that district councils are taking the largest hit in spending power reductions between 2016/17 and 2017/18.”

Government plans will see a 0.4% baseline for housing growth introduced, under which councils will not receive any NHB. Clarke called this “unfair” because the idea had not been included in the original consultation on the bonus and “could not have been predicted”.

“More Hovis than Bovis”

“Like a loaf of bread, the house bullder Bovis is a bit crumbly. Its chief executive has just departed, in advance of some poor financial results. One of the company’s problems seems to be that it can’t build the houses it promised to build.

At the end of last year Bovis issued a profits warning. It stated: “We have experienced slower-than-expected build production across the group’s sites during December, resulting in approximately 180 largely built and sold private homes that were expected to complete in 2016 being deferred into early 2017”[1].

One story not covered in the company’s media releases featured heavily in The Times this morning, and also in the Guardian [2]. This is that Bovis was paying purchasers cash of between £2000 and £3000 to complete the purchase of new homes even though the houses were not ready. Some 650 people are members of the Bovis Homes Victims Group [3] set up on Facebook to share their depressing experiences.

One lesson to be drawn from this story is that reliance on the volume housebuilders to deliver the housing we need is a fool’s errand. Despite its use of standard designs, of as low a density and as a high a price as they can get away with, Bovis hasn’t met its own targets. Moreover, all large housebuilders shy away from building on brownfield – previously developed – land because it costs more to build there than on green fields. And so we get urban sprawl and loss of productive farming land or greenspace for us to enjoy. Meanwhile the government blames local authorities and the planning system for delays, while turning a blind eye to the failings among its own corporate supporters.

At the same time, small and medium-sized housebuilders are having difficulty finding land on which to build homes, as a recent report from the Federation of Master Builders and the Local Government Information Unit showed [4]. The report did aim criticism at local authorities for concentrating on large developments when drawing up local plans, a charge that is certainly true in some areas. This bias against small firms also hinders the development of housing co-operatives which design the housing their members want rather than what the housebuilders tell them they can have.

NOTES

[1] Bovis Homes Group plc press release 28 December 2016 at http://www.bovishomesgroup.co.uk/media-centre/press-releases/press-release-173/pre-close-update/

[2] Guardian story at https://www.theguardian.com/business/2017/jan/11/bovis-accused-of-pressurising-buyers-to-move-into-unfinished-homes The Times is behind a paywall.

[3] https://www.facebook.com/groups/BovisVictimsGroup/

[4] http://www.fmb.org.uk/about-the-fmb/policy-and-public-affairs/new-fmb-research/”

Source: https://petercleasby.com/2017/01/11/more-hovis-than-bovis/

“Planning systems favour developers over communities” survey finds

“Almost three-quarters of local councils believe that the planning system is weighted too heavily in favour of developers at the expense of local democracy, according to a survey.

Commissioned by the National Trust and carried out by the Local Government Information Unit, the survey canvassed 1,200 ward councilors in England on aspects of the planning system.

The results, published today, show that 72% of councillors feel the existing system puts the interests of developers over and above those of councils and communities. Also, half of councillors said planning departments are inadequately funded, and the same amount claimed sites that are not in line with their council’s local plans are being approved for new housing.

The government has pushed for the adoption of local plans throughout England. In a statement to the Commons in 2015, then housing and planning minister Brandon Lewis described local plans as the “cornerstone” of the government’s planning reforms. Produced in consultation with communities, they are designed to offer “certainty on where new homes are to be built”.

The survey findings come as the government puts the final touches to its housing white paper, which is expected to be published later this month. The National Trust and LGIU urged Whitehall to revise the paper to boost confidence in the way the system works.

In a joint statement, the organisations argued that the views of councillors were often ignored in debates around the future of the planning system. “Yet, as local decision-makers, and an important link with local communities, they have an essential role to play in ensuring development is sensitive to the needs of the area,” they said.

Theresa May’s government has responded to pressure over a lack of new housebuilding in the country by announcing a raft of new measures and significant funding to boost construction.

As such, communities secretary Sajid Javid last week invited housing providers to bid for a share of a £7bn fund in what was described as a “dramatic expansion” of the affordable house programme.

The survey also revealed anxieties about loosened planning restrictions, with 58% of councillors believing their council would allocate green belt land for housing in the next five years. There are also concerns about the introduction of permitted development rights for home extensions, office-to-residential use conversions and other changes of use.

Moreover, the National Planning Policy Framework does not appear to be having the positive impact it was intended to have on design quality. Only 18% of councillors say designs have improved, and only 12% believe that loosening planning restrictions has had any positive impact.

Jonathan Carr-West, chief executive of the LGiU, said that five years on from the adoption of the government’s planning reforms, it was worrying that councillors felt it hadn’t delivered the localism that was promised.

He said: “If ministers are serious about local plans being at the heart of the planning system, then they should invest in council planning teams and use the housing white paper to give them the tools to deliver good quality housing in the right places.”

http://www.publicfinance.co.uk/news/2017/01/planning-systems-favour-developers-over-communities-lgiu-survey-finds

EDDC kicks out affordable housing on its own land in Sidmouth – using it for a third office site after relocation

Remember the old days, when EDDC said its move to a single new building in Honiton would save money?

Then it added an old, crumbling building in Exmouth (the Town Hall) neglecting to have a full survey before estimating the cost of refurbishment. Those refurbishment costs are now £1.669m, – £408,000 more than the original estimate.

Now we hear that, instead of providing 20 affordable houses on the Manstone Depot site in Sidmouth as set out in the local plan, EDDC has instead decided to build offices for its Estates Department and keep the Streetscene department there.

No costs appear to be in the public domain for this – which should form part of the relocation budget. And it begs the question: why is the Estates Department and Streetscene relocating to Manstone Depot rather than to the new site in Honiton? Is the Honiton site too small, or does EDDC have an antipathy to affordable housing in Sidmouth? Or is there some other more murky reason?

Or is it just that officers and councillors don’t want Streetscene vehicles and materials spoiling their view in Honiton?

Here is the story from Sidmouth Herald:

“East Devon District Council’s (EDDC) Manstone Depot is allocated for 20 homes in its Local Plan – but now the authority wants to keep its estates department in Sidmouth when it relocates to Exmouth and Honiton.

Its development management committee (DMC) has been recommended to approve the plans for a single-storey office block when it meets on Tuesday (January 10).

Jeremy Woodward, who has campaigned for transparency in the relocation project, said: “I am dismayed about what seems to be EDDC’s disregard for its own Local Plan – and promises of affordable housing which is much-needed in Sidmouth.

“This application is clearly very sensitive.

“Firstly, it is on a site reserved for housing in the Local Plan; and secondly, it is clearly part of the ‘larger picture’ of the district council’s relocation project.”

Mr Woodward submitted a Freedom of Information request in 2014 which revealed that EDDC’s housing service had made two conditional offers to build 25 homes on the Manstone Depot site. One had a mix of market and ‘affordable’ homes; the other was fully ‘affordable’.

The report to DMC members says the offices will be limited to one section of the site and housing could still be delivered on the remaining area. It adds, the departure from the Local Plan is not grounds to refuse the application.

The office building would act as a ‘hub’ for operations that already largely take place from the depot, which is used by the StreetScene team and for storage, adds the report.

An EDDC spokeswoman said: “The consolidation of Knowle Depot activities to our existing site at Manstone is an opportunity that results as part of the relocation project.

“The transfer of depot activities is an existing costed element of the relocation project and, as such, included within the independent and positive cost modelling of relocation.

“Manstone Depot continues to provide a base for a range of important services to Sidmouth and the wider district.”

http://www.sidmouthherald.co.uk/news/dismay_at_office_plan_on_sidmouth_site_allocated_for_affordable_homes_1_4838725

CEO of Bovis Homes leaves suddenly

“The boss of house builder Bovis Homes Group PLC (LON:BVS) has quit his role with immediate effect just over a week after the group warned it will miss home sales targets

The FTSE 250-listed firm said David Ritchie has stepped down as its chief executive officer with immediate effect but will remain with the firm until the end of February to help with the transition process.

Bovis added that Earl Sibley, the firm’s finance director, will be interim CEO as the group searches for a permanent successor to Ritchie, a process which it said will start immediately and which is expected to take several months.

No reason was given for Ritchie’s abrupt departure but it comes after the group cautioned on December 28 that new house sales this year will be lower than expected due to completions in December falling short.

The group said in an unscheduled trading update then that total sales for the year will now be between 3,950 to 4,000, with slower than predicted building times pushing 180 homes due to complete into the next trading year.

In a note to clients, analysts at Liberum said: “Management change could be positive for the Group in due course if the building of homes can be improved, so that the Group can exploit a decent landbank more effectively. …”

http://www.proactiveinvestors.co.uk/companies/news/171312/bovis-homes-boss-quits-with-immediate-effect-just-over-a-week-after-cautious-update-171312.html

In early morning trade, Bovis shares were 2.5% higher, up 20.5p at 831.5p.