Renting now outstripping buying homes

“The property rental market is booming at the expense of the sales market, making it look as if house-buying will be outstripped for the first time in eight decades next year, as home-buyers face a continued struggle to find properties they can afford.

Activity in the sales market has cooled since June’s Brexit vote and a lack of property for sale combined with rising prices are set to lead to more new lets than purchases, the UK’s largest estate agency chain, Countrywide, said.

Johnny Morris, research director at Countrywide, said: “As some would-be buyers and sellers sit on their hands, Brexit-induced uncertainty has continued to boost the rental market … September saw record activity, with increasing numbers of lets agreed and tenants choosing to renew their contracts. On current trends 2017 could be the first time since the 1930s that more homes are let than sold.”

Separate reports suggest that affording a new home is becoming increasingly difficult for would-be buyers, with asking prices rising since the summer and borrowers having to find bigger deposits than in 2015.”

http://www.theguardian.com/uk-news/2016/oct/17/property-rentals-to-outstrip-sales-for-first-time-since-1930s

When is a village not a village?

When it has 10,000 houses – it’s a TOWN!

Garden villages scheme gets cash boost

An extra £1m has been put behind the garden villages programme, taking the total government funding on offer to £7m.

Housing minister Gavin Barwell urged councils to apply for the money as “we want to ensure everyone has an affordable place to live and that means we’ve got to build more homes”.

The scheme assists the development of new villages of between 1,500 and 10,000 homes planned around green spaces.

It already supports developments planned at Bicester, Didcot, Basingstoke, a site near to Braintree, Essex, and the former RAF Deensthorpe airfield near Corby, Northamptonshire.

http://www.publicfinance.co.uk/news/2016/10/garden-villages-scheme-gets-cash-boost

How to kill a town

This is about Totnes, but could be any town, anywhere:

“There are three easy ways to destroy a town.

First – relax the planning laws so that developers can build what they want, where they want.

Two – build huge amounts of houses all at once, all over the fields surrounding the town; infill any green space inside; make sure the houses obscure everyone else; make sure they are all unaffordable to local people, but attractive to second home owners and buy to let investors; make sure you don’t provide any new infrastructure, no new schools, hospital places, improvements to roads, to sewers; make sure that local industries; the marina, the last dairy farm are closed down and covered in new, ugly boxes with no gardens and in regimented rows.

[Three] You’re nearly there now! Make sure that the roads are so congested with new cars that traffic can’t move and then for your final flourish, sell off its most treasured, vital area, in the case of Totnes, the market and the garden and the central car parks without which a town such as Totnes cannot function.

Wonderful, you’re there. You have successfully choked an ancient and very special place to death; you look at the million pound houses replacing the marina and it looks good; you look at the tacky tacky boxes spreading out over the hillside along the river and you smile to yourself, who needs farmers, they’re mucky – we can buy all we need from the huge industrial intensive farming block in Hampshire. Who needs a market?

The Black Prince may well have given this ancient town a charter, but that was such a long time ago, who needs history? Who needs tourism, there must be other jobs these people can do, well it doesn’t really matter, once we’ve got the locals out and replaced them almost entirely with second home owners, then we won’t be bothered with their complaints – black windows all winter are a bonus.

Look at Salcombe, 70% second homes and no trouble at all. All those ridiculous transition people with their big ideas and their trying to live responsibly, there’s no money to be made in that, what’s the matter with them.

No, lets make sure we do to Totnes what we have done so successfully in the past to Torbay and towns like Newton Abbot, there’s nothing quite so satisfying as ripping the heart out of a marvellous old place and replacing that heart with concrete…”

https://allengeorgina.wordpress.com/2016/10/12/how-to-kill-a-town-a-how-to-guide/

“Greater Exeter” and its impact on housing and infrastructure in East Devon

We learned recently that the current Stagecoach depot opposite the bus station in Exeter is going to be turned into a massive block of student housing – 557 units.

Now we hear that there are plans for the site of the Honiton Inn, on the roundabout opposite the bus station to be another student block of 101 flats with their own private gym and cinema – opposite a public gym and cinema!

http://m.exeterexpressandecho.co.uk/plans-in-for-huge-exeter-city-centre-student-block-on-honiton-inn-site/story-29794670-detail/story.html

What effect will this have on East Devon?

Well, “Greater Exeter” – whose “Visioning Board” like all such development and regeneration boards in “Greater Exeter” meets in secret – is making arrangements to do the next revision to its 3 Local Plans (Exeter, East Devon and Teignbridge) together.

It will be totally evident (in fact it is already) that Exeter’s main growth in housing will remain student housing. So, where will housing for other people go? Obviously East Devon and Teignbridge.

Cranbrook has natural boundaries beyond which it will soon make its further expansion much more difficult than heretofore. Therefore, it will be towns such as Exmouth, Honiton and Sidmouth – and the green fields in-between – that must be expanded to take in the commuters into Exeter, with a possible massive impact.

None of this is being put before the general public in any of the three areas nor is adequate infrastructure being planned for this big change (or at least we cannot be allowed know of any). And, of course, our Local Enterprise Partnership will “own” the business rates of the Exeter “Growth Area” and will have its fingers in the many development pies.

Time to start talking about the NEXT revision of the Local Plan which may well see even more massive development in East Devon on a much bigger scale than we could ever have imagined and could dwarf the extra numbers already agreed..

Chartered Institute of Housebuilding tells government to build more affordable rent homes

“…The professional body for the sector made the comments as the chancellor Philip Hammond prepares to make his first major spending announcements in the Autumn Statement on 23 November.

At the Conservative Party conference last week, the chancellor and local government secretary Sajid Javid unveiled a £3bn housebuilding fund, and outlined plans to directly commission the construction of homes on publicly owned land. The aim is to build 25,000 new homes before 2020.

The CIH welcomed the announcements and recommended a range of further initiatives in its submission to ministers.

It called on the government to focus on substantially increasing the number of affordable rented homes in the UK. It also recommended increasing funding for regeneration, improving standards in the private rented sector, and renewing the fight against homelessness.

Gavin Smart, deputy chief executive of CIH, said: “We welcome the level of focus on housing by the government recently; in particular the acknowledgement that enhancing affordability will be central to solving our housing crisis.

“We believe that the Autumn Statement is the opportunity to turn this commitment into action and build a substantial amount of new properties at affordable rents. This is the only way we can really begin to tackle our housing crisis and make sure people of all incomes have access to a home they can afford.”

Among its other recommendations, CIH urged the government to follow through on pledges to introduce greater flexibility for affordable homes funding.

It also advised the government to allow councils to borrow more for housebuilding through “reshaping and extending” the housing revenue account borrowing provisions. Currently, councils are limited in how much they can borrow under a cap introduced when councils were made self-financing for housing debt in 2012.

The CIH also said local authorities should be exempt for the remaining stages of the scheme to cut social housing rents in exchange for extra investment in rented homes.”

http://www.publicfinance.co.uk/news/2016/10/autumn-statement-must-deliver-government-housing-promises-says-cih

Towns being pressurised to take the strain from rural areas?

Two articles below from the Rural Services network are essentially telling the same story: it’s too expensive to fund rural communities (particularly health and social care for older people) so let’s increase densities in towns and persuade people to live there instead.

What seems to be the message is “build it and they will come” – but who will come and why?

If you have no primary school, no doctor, no bus service in your rural village are you expected to up sticks and move to a town or city where housing density increases and these services are supposedly more easily accessed and where transport is supposedly better?

Very little of the new housing in towns and cities is affordable or built for low-income families or pensioners. Infrastructure is not being built to service the new houses (roads in Cranbrook are still unadopted) and doctors are stretched to their limit with current patients.

Community hospitals are likely to be closed in half of our towns, so, in a deepest rural area you will actually probably be closer to a community hospital than if you live in a town – if you have a car. Maternity services will be non-existent for rural parents.

What would persuade rural dwellers to move to towns where facilities are just as bad as in their villages? People who CHOSE a village carefully in the first place?

And how would those villages survive if they COULD and did move? Only the rich will soon be able to afford rural living (where no access to a “transport hub” or a school or a doctor will not worry them) and ordinary rural families and older people on average incomes will be forced into inadequate town and city properties whether they like it or not.

And why, if this IS the way of the world, is there still so much pressure to build more and more houses in these small villages?

Is this really the answer to our problems?

Cranbrook or Uplyme? Honiton or West Hill?

Soon you may have no choice.

Challenges faced by rural communities

The Rural Services Network has urged the government to use its forthcoming Autumn Statement to address challenges faced by rural communities.

The network has called on Chancellor Philip Hammond to include two targeted measures in the Autumn Statement, due next month.

One measure seeks to boost economic growth and productivity in rural areas. The other seeks to improve care for older rural people.

The first policy proposal calls for investment in rural infrastructure in order to support rural growth and employment.

The network proposes that this measure focuses on improvements to rural broadband connectivity, rural public transport and better provision of affordable rural housing.
“It is important that rural economies can be productive and can grow, both for the wellbeing of rural areas themselves and as contributors to the national economy,” says the proposal.

“However, rural areas have some relative weaknesses.”
Rural weaknesses include productivity levels that are below the national average, low wages and below average capital investment by businesses, says the network.

The second policy proposal is for improvements in adult social services provision in rural areas.

The proposal calls for revenue grant funding investment to end further reductions in adult social services provision and to take account of the ageing population.

Rural areas are home to a disproportionate number of older people within their populations, which places a significant extra burden on adult social services.

“Adult social services are already over-stretched as a result of reducing local authority budgets,” says the network’s proposal.

“Many social services department have tightened up their criteria for helping residents and now focus only on high priority cases.

The network says one outcome is that many older people are not discharged from hospital as quickly as they otherwise could be, which is an additional cost for the NHS.

“Growing demand for adult social services risks taking the situation to breaking point.

“It is acknowledged that upper tier local authorities are being allowed to raise their portion of Council Tax income by an extra 2% to help address this concern.

“This, however, does not keep pace with rising costs faced by the sector, including those from National Minimum Wage and National Insurance increases.”

The network wants funding for adult social services protected, as it is for the NHS.

Central government could achieve this with a specific extra grant to upper tier local authorities, says the proposal.
Despite attempts to protect frontline services, in the 2014/15 financial year the relevant authorities were planning budget reductions of £420m for adult social services.

A slightly larger sum would be needed to account for the growing number of older people.

Nationally, some £1bn would be needed to stop further service reductions or pressures in just one financial year, says the network.

More appropriate levels of formal care for older rural people would reduce pressure on and save costs in the NHS, it says.

These benefits would not only accrue to rural areas, but they would be particularly valuable there given their population profiles, it adds.

http://www.rsnonline.org.uk/services/network-urges-chancellor-to-address-rural-challenges

More attractive towns and cities can ease pressure on countryside”

“MORE attractive towns and cities would ease development pressure on the countryside, say rural campaigners.

Housing should be developed alongside transport infrastructure for economic, social and environmental benefits, says the Campaign to Protect Rural England (CPRE).

The charity argues that high-density development near to high-quality public transport services could boost businesses and jobs.

It also calls for more well-designed homes and more diverse, exciting communities, arguing that they would reduce pressure on the Green Belt and the wider countryside.

The recommendations are made in CPRE’s ‘Making the Link’ paper which, it says, builds on emerging government thinking.

CPRE policy adviser Trinley Walker said: “To build the homes we need and make our towns attractive for residents and businesses, housing development and transport must go hand in hand.

“Good access to public transport should be an important factor when councils make decisions about where to build houses – yet it often gets side-lined.

“This means that in many towns the potential for regeneration, quality housing and better connected communities is missed.”

The paper highlights the government’s recent NPPF consultation identified 680 commuter hubs suitable for high density development.

It argues that attention can also be given to smaller places like market towns, which delivering connectivity, services, employment and business opportunities for rural communities.
Situating high-density housing near transport hubs can concentrate development on brownfield sites in need of regeneration and increase connectivity to employment centres, says the paper.

This has the potential to make towns more attractive for residents and business, halt damaging urban sprawl and reduce car use and road congestion, it argues.

The paper suggests a number of options to encourage such development.

These include reduced business rates for local businesses and the roll-out of planning tools to help identify suitable locations for development.

The paper calls for higher-density development based around public transport hubs, planned around local services and waking and cycling.

High density development needn’t mean tower blocks in market towns, it says.

Terraced housing and mansion blocks can provide high density homes and preserve the unique character of towns, the paper argues.

‘Making the Link’ is the sixth paper in CPRE’s Housing Foresight series, which aims to provide innovative policy solutions to critical housing issues.”

http://www.rsnonline.org.uk/environment/cities-can-ease-pressure-on-countryside

Leave you home to grandchildren not children says Housing Minister!

“The housing minister, Gavin Barwell, has suggested that parents should leave their houses and savings to their grandchildren rather than their children to help them get on the housing ladder.

Barwell made the call for pensioners to skip a generation when writing their wills as he revealed that his 75-year-old mother had chosen to leave her £700,000 house in Croydon to her five grandchildren rather than himself and his brother.

The MP for Croydon Central, who owns a £750,000 house three miles from his mother’s, said the decision could help to reduce intergenerational financial inequities. “Generally in life we all like to think that our children are going to be better off than us. In terms of new technology and life expectancy, they are going to be,” he told a fringe meeting at the Conservative party conference in Birmingham last week.

“But at the moment, as things stand, they are less likely to own their own home and we need to do something about that.”

However, Barwell added that he did not want to live in a country where it was necessary to have a wealthy grandparent simply to get on to to the housing ladder, the Telegraph reported.”

http://www.theguardian.com/society/2016/oct/09/skip-a-generation-when-passing-on-homes-says-housing-minister

Housing Minister wants more tiny “pocket apartments”

Or, “Honey I shrunk the flat – and how! And you can bet they won’t be any cheaper than current apartments – just slightly more of them.

“Britain already builds the smallest homes in Europe. A one-bedroom flat averages at 500sq ft – about the size of a tube carriage – while Barwell’s favoured developer, Pocket Living, sells 400sq ft flats for a quarter of a million pounds apiece.

The Royal Institute of British Architects says that more than half of new houses built are too small for families to live in (it’s a bit of a mystery where all these “home-grown” workers our Brexit-mad government keeps going on about are actually going to, well, grow up).

The average home in Denmark is twice as big as one of ours already. It’s a shameful state of affairs unlikely to be remedied by one of the stupidest policy suggestions to come out of the housing crisis thus far”

http://www.theguardian.com/commentisfree/2016/oct/05/housing-crisis-building-standards-size

Developer meeting … somewhere in deep, dark Devon

£3 billion or £5 billion to be made available to build 25,000 houses by 2020:

“OK Hammond is giving us £3 billion to build 25,000 homes by 2020 – that’s £120,000 per unit, right? So, you know that site we’ve had our eye on in the Home Counties, that we were going to put the £350,000 houses on – let’s just go right ahead and charge £475,000 and claim the subsidy. Right. That’s a £120,000 extra profit for each house. Phil – that looks like a nice little earner for us, can you get Damien to buy them all with those Panama shell companies he set up for us? Sweet!”

Hammond wants to “emphasise” brownfield sites:

“Phil I found a rotten brownfield site – it’s absolute rubbish – literally, built on an old landfill site the council is offering us for £1 – I know, I know – old Bill came up trumps, well worth that deal we did for his daughter. What do you think about slapping up a few ticky-tackies at about £50,000 a pop, claiming the brownfield subsidy of £120,000 each and flogging ’em off fast at a bargain price of, oh, let’s say £250,000? In, out, bosh, bosh, a donation to the party and bob’s my knighthood. Get on to it Phil – and keep a couple back, I hear Bill has a couple of other kids he needs to set up”.

Hammond has also suggested developing derelict shopping centres for housing:

“Now, about Middletown Shopping Centre. Yes, I KNOW it’s fully let, yes I KNOW it’s popular, yes, I KNOW there’s a waiting list for vacancies, yes, I KNOW it’s been a nice little earner for us over the years. But that new Hammond idea is the way to go. So, Damien – cut down the maintenance to bare bones, bung up the bogs and start telling the papers about the terrible drug problems there. Yes, I KNOW there isn’t a drug problem – it’s your job to make sure there is, Damien. … Now how many units can we cram in there with a £120,000 each subsidy. Yes, I KNOW they will have to go 5 miles to shop, but that isn’t my problem. (Starts to sing): “We’re in the money, we’re in the money…”

Housing: a sticking plaster on gangrene

“Key measures announced today include the launch of a new £3 billion Home Building Fund to help small and “custom” builders deliver 25,500 homes by 2020.

This will be used to unlock a pipe line of up to 200,000 homes over the longer term – with the emphasis on development on brownfield land.”

http://www.plymouthherald.co.uk/tories-promise-boost-for-housing-infrastructure-and-enterprise/story-29772997-detail/story.html

1. It will not stop land banking or developers dribbling out new houses to keep prices up.

2. Large builders will now create small offshoots to sponge up the money.

3. DEFINITELY no social or truly-affordable houses.

4. So far, no help for low and mid-income people to truly be able to afford deposits and mortgages without the bank of mum and dad.

5. Many of the new homes will probably be buy-to-let.

6. No INSISTENCE on brownfield sites, just am ” emphasis”.

Nice one. Just 25,000 more houses … a drop in the ocean …

“Tory housing minister says building more council homes will increase inequality”

Jeremy Corbyn’s pledge to dramatically increase the construction of council homes will actually increase inequality, the Conservative housing minister today claimed.

Gavin Barwell told the party’s conference that the Labour plan to build at least 500,000 council homes as part of an increase overall housebuilding to a million would increase inequality between people who owned homes and those that did not.

He told a fringe event at the Birmingham gathering on Sunday afternoon that far from solving the housing crisis, the plan and would widen “the divide in society”.

“If we carry on building at the current rate then by 2020 the average house in the south east of England will increase by about £1000 a week. That will mean normal people’s homes in Kent or Hampshire, or wherever, are going to be earning more than they’re earning,” Mr Barwell said.

“Think about the consequences of that in terms of the equality in society between people that are lucky enough to have or inherit a property – and those that don’t have property.

“That was what I think was so remarkable about what Jeremy Corbyn envisaged last week – because he envisaged a future where half of us live in council homes.

“If you’re going to build at the current rate – which is what he’s talking about – and half the people are going to go in council homes and half of them are going to own, the divide in society is only going to get wider and wider. I would have thought he cares about that.”

http://www.independent.co.uk/news/uk/politics/tory-council-housing-housebuilding-gavin-barwell-conference-live-2016-a7341946.html

However, the new Minister is a NIMBY in his own constituency:

The new Housing Minister that Theresa May tasked to increase home-building has been accused of taking a “not in my back yard” approach, after it emerged he fought against the construction of hundreds of properties in his own constituency.

Gavin Barwell was appointed by Theresa May last month as the incoming Prime Minister pledged to “get more houses built” and solve the housing crisis plaguing parts of Britain.

But plans opposed by Mr Barwell in his own constituency of Croydon Central, despite a huge housing shortage there, would have potentially provided homes for more than 500 families in the area. …”

http://www.independent.co.uk/news/uk/politics/tory-council-housing-housebuilding-gavin-barwell-conference-live-2016-a7341946.html

Lies, damned lies and retweets about housing figures from Hugo Swire

Swire retweeted this:

“Gavin Barwell MP ‏@GavinBarwellMP
New figures released today show since 2010 government schemes have helped 330,000 people buy a new home #OwnYourHome”

NO! NO! NO! It has not helped 330,000 people to buy new homes!

When you follow the link it says: 185,000 people have bought new houses BUT, when you read further, actually it only talks about 91,000 of those homes having used various government schemes.

The press release says ”

The government is committed to helping people achieve their aspiration of home ownership, through the range of Help to Buy schemes, including: ISA, Shared Ownership, Equity Loan, London Help to Buy and Mortgage Guarantee.”

Remember that some of these schemes allow wealthy people to buy homes worth up to £650,000 for their children with huge discounts, that the ISA was revealed to only be helpful AFTER you had bought a home AND paid a deposit when people thought they were signing up for help WITH deposits, and equity loans grab a share of your home as does shared ownership.

Nowhere does Mr Barwell, or Mr Swire, explain where the figure of 330,000 comes from – except to say that it is “since 2010” when ?some ?all, ?most of these schemes did not exist!

Donald Trump, eat your heart out – post-truth politics flourishes here in the UK!

“Help to buy” scheme ends – with £117.2 billion left in the kitty

Question: what happens to the £117.2bn underspend still left in the kitty? That’s an awful lot of affordable social housing. Oh, forgot – this government doesn’t build social housing as the people in it vote Labour, according to George Osborne. Bet it goes to large-scale, high-end developers – again.

“… The programme was announced by Hammond’s predecessor George Osborne in his 2013 Budget to boost the housing market and help people buy a home. At the launch, Osborne said he intended the support to run for three years from its launch in September 2013, and Hammond confirmed it would close to new loans on 31 December.

The programme offers government mortgage guarantees to people who are struggling to raise a deposit. According to figures published today, 86,341 mortgages have been completed with the support of the scheme. Of these, 79% were purchases by first time buyers, while the total value of mortgages supported by the scheme is £12.8bn, less than a tenth of the £130bn worth of mortgages that Osborne initially said the scheme could support. …”

http://www.publicfinance.co.uk/news/2016/09/osbornes-flagship-help-buy-scheme-close-hammond-confirms

“Brilliant” delivery of housing in coastal communities and market towns

“… When it came to housing delivery, Elphicke said biggest was not always best. “Some of our coastal communities, country villages and market towns, post-industrial heartlands and historic cities and counties of England are absolutely brilliant at making housing delivery happen and are delivering the majority of our new homes.”

http://www.theguardian.com/business/2016/sep/27/refocus-housebuilding-towns-villages-housing-finance-institute

Who says? Natalie Elphicke, of the Housing and Finance think tank.

Yeah, brilliant … for you Natalie!

Cranbrook: vandals cause at lease £4,000 damage which all home occupiers will have to pay

From the Cranbrook Herald e-edition:

Vandalism and graffiti  damage has taken place in the play park, fencing and to town signage as well as fly-tipping.  EDDC says that the cost of putting in right will fall on all householders and the money will be clawed back from the “Estate Rent Charge” (whatever that is) which each and every dwelling has to pay and for which there are no discounts for single parents or those on benefits or low incomes.

“Footballers’ £400m social housing dream unveiled”

“… A year ago, former England captain Rio Ferdinand, West Ham United skipper Mark Noble and ex-Brighton striker Bobby Zamora turned up at the conference to unveil their Legacy Foundation – a regeneration charity with a plan to build a series of social and privately rentable housing schemes, backed by private investors.

The stars (all three of whom have played for West Ham) are coming back to present their first project, worth £400m, to build 1,300 homes on a 22-hectare site in a run-down area in Houghton Regis near Luton. The scheme is a partnership with Central Bedfordshire council, which they met at the conference last year, and is being funded by Aviva Investors. …”

http://www.theguardian.com/society/2016/sep/24/footballers-400m-social-housing-dream-unveiled?CMP=Share_iOSApp_Other

Unhappy Cranbrook neighbour

A story on the Daily Mail online about couple who didn’t realise housing estate being built next to their cottage:

http://www.dailymail.co.uk/news/article-3801805/Couple-s-rural-dream-nightmare-plans-approved-700-home-housing-estate-sides-isolated-farm-cottage.html

provoked this response from someone in the area of Cranbrook:

Same thing has happened to us. Many of the new houses are rented privately or through housing association and some of the new residents are not very nice. Noise, crime and rubbish has increased enormously since they built these new houses, 450 of them in three small green fields. We have no choice but to move after 41 years in this house and raising a family here, this is what they call progress. There are no green spaces left in our village now and ALL of these new people are not from this area and many are not even British (how do they qualify for social housing here?)”

No welcome there then!

Poor quality of new housing in Axminster

The EDDC Overview Committee deliberated about the poor quality of new private housing being built in East Devon, particularly in Axminster:

“A number of concerns and issues were noted by the Think Tank including common problems such as the quality of finish of plaster and cracking, the fitting of kitchens and bathrooms and other internal cosmetic issues.

More specific issues such as a development in Axminster where the retaining structures supporting split levels between gardens had been made of timber which had subsequently rotted leaving residents with gardens that were subsiding and concerns over who is
responsible for rectifying these fault.”

Click to access 270916-overview-agenda-combined.pdf

They had nothing useful to say about how this could be improved.