Retirement flats – the big con

Tens of thousands of families have seen their inheritances decimated after elderly relatives paid inflated prices for new retirement homes that have collapsed in value, an investigation by The Times has found. Prices of retirement flats in developments built by some of Britain’s biggest housebuilders have plummeted by up to 90 per cent in the face of costly annual management charges and ground rents.

Analysis of Land Registry data suggests that £3 billion could have been wiped from the value of retirement homes built between 2001 and 2015. In one case, a flat bought for £197,000 in 2009 from builder McCarthy & Stone, a FTSE 250 company, was sold for only £26,000six years later. The owner, Miriam Savage, was paying £8,200 a year in service charges and ground rent to the managing agent.

The losses often become apparent to families only when their loved ones die and they try to sell their home. There are 150,000 retirement flats in the UK. They don’t have full-time nurses but most have communal areas and features to help residents live independently. There is often 24-hour telephone support or wardens on site.

The properties are sold as leaseholds with the freeholds bought by the highest bidder. The freeholder collects an annual ground rent and appoints an agent to run the development. These companies have been accused of levying excessive fees and charges and leaving facilities to fall into disrepair.

Sebastian O’Kelly, of betterretirementhousing.com, said: “These flats routinely plummet in value and the reason is the leasehold system. The freeholder and property manager still get their ground rent and service fees irrespective of price. It’s deplorable that families are pouring money into these purchases, often in desperation, only to see their value evaporate.”

Retirement home builders say the value of the properties is not just financial. They say they reduce loneliness and the burden of maintenance and increase safety and security. McCarthy & Stone points out that since 2010 it has not allowed outside companies to manage its sites and this is protecting values.

Some families have concerns about how properties are sold. One complained that a 88-year-old relative was sold a flat while her daughter was on holiday. When the woman died, the flat wouldn’t sell. Land Registry data shows the average loss of value for flats in the block is £74,000.

The Times looked at nearly 500 retirement flats in 15 developments built between 2001 and 2015. Almost 80 per cent of the homes sold since their first purchase had fallen in value with an average loss of £38,846. The analysis suggests that flats built since 2010 have fared better with only 37 per cent experiencing losses. But one McCarthy & Stone flat built in 2015 lost £45,000 in value when it was sold this year. In the past four years McCarthy & Stone has made profits of £383 million.

Mr O’Kelly said: “The situation may be improving as builders move to being service providers but these companies successfully lobbied government to retain ground rents on retirement sites, which doesn’t encourage the belief they have a long-term interest.”

This week Churchill Retirement Homes donated £150,000 to the Tories. The company is run by Spencer and Clinton McCarthy, the sons of John McCarthy, the co-founder of McCarthy & Stone. There is no suggestion that the donation was linked to the decision to exempt retirement home providers from a ban on ground rents. Spencer and Clinton McCarthy have been Tory supporters for ten years.

The industry says the sale of freeholds funds communal areas and without this system flats would cost more.

Sources at McCarthy & Stone insist it is a different company to the one that developed homes pre-2010. FirstPort is responsible for maintaining the developments built before 2010. It said that nine out of 10 customers say its properties improve their quality of life. It added: “Independent research by the Elderly Accommodation Counsel in 2019 found that new retirement properties typically increase in value. The vast majority of our managed properties increase in price on resale and they are more than just places to live.”

“The billionaire and the 219 tiny flats: a new low for rabbit-hutch Britain?”

“Campaigners have piled in to criticise plans drawn up by a billionaire property tycoon to cram more than 200 tiny flats into an office building in north London. They describe it as a “human warehouse” that would be filled with people living in “cramped single-occupancy shoeboxes” like “rabbits in hutches”.

Amid claims that some of the planned flats would be as small as 15 sq metres – that’s less than 13ft by 13ft for residents’ entire living space – some locals say the proposal is one of the most shocking examples yet of the phenomenon known as office-to-residential conversion. A typical Premier Inn hotel room is 21 sq metres, while national space standards state that the minimum floor area for a new one-bedroom one-person home is 37 sq metres.

It was 10 years ago that, while London mayor, Boris Johnson pledged an end to “hobbit” homes in the capital, but examples of rabbit-hutch developments keep coming, and one leading architect told Guardian Money: “We’re heading towards the so-called ‘coffin homes’ in Hong Kong.” …”

https://www.theguardian.com/money/2019/nov/23/the-billionaire-and-the-219-tiny-flats-a-new-low-for-rabbit-hutch-britain?CMP=Share_iOSApp_Other

More Tory fake news – this time on housing policy

The Sun has this headline:

“Labour in La La Land

Jeremy Corbyn will force Brits to sell land at a fraction of the price so he can go on huge housebuilding drive’

https://www.thesun.co.uk/news/10389467/corbyn-seize-property-housebuilding-drive/

The reality:

Labour’s plan is for land to be sold to councils and developers at its value BEFORE planning permission can be applied for rather than as, at present, being sold AFTER planning permission has been granted.

That won’t please East Devon Green Party candidate Henry Gent, who currently stands to make millions of pounds on the option he has given to Persimmon to build hundreds of houses on his farm land.

If Corbyn gets his way, he would get only the agricultural value of the land – making it significantly cheaper to build houses.

They published their ideas in June 2019:

Click to access 12081_19-Land-for-the-Many.pdf

Kicked-out Tory Oliver Letwin understood the problem, but stopped short of offering a solution:

“Under the 1961 Land Compensation Act, councils are not permitted to buy agricultural land at its current value; instead they must pay a speculative “hope value”, based on the value of the land with permission to develop the site. That can easily make land more than 100 times more expensive than its actual worth. In his review of build-out rates (the report about the problem of land-banking that concluded that land-banking wasn’t a problem…), Oliver Letwin suggested that the residual land value of large sites should be capped at about 10 times their existing use value. Clearly better than paying 100 times the value – but does it go far enough?”

https://www.bdonline.co.uk/opinion/its-not-just-labour-thats-getting-behind-a-land-value-tax-/5099426.article

So this is both fake news and OLD news!

“Housebuilding data shows dearth of homes for affordable renting”

“The number of new homes classed as social housing and available at the cheapest rents from councils remained historically low at a mere 6,287, the second-lowest level in peacetime since council house building began in earnest in 1921.

The shortfall in new affordable homes is likely to fuel householders’ reliance on the private rental market. New research also published on Wednesday showed such housing is almost completely unaffordable in many areas for people who rely on housing benefit, which has been frozen since 2016.

In a third of areas of England fewer than 10% of homes are now affordable to welfare recipients, according to a study by the Chartered Institute of Housing and the homelessness charity Crisis. That meant increasing numbers of people were being pushed into homelessness or forced to live in emergency or temporary accommodation, the charity said. …”

https://www.theguardian.com/society/2019/nov/20/housebuilding-data-shows-dearth-of-homes-for-affordable-renting?CMP=Share_iOSApp_Other

PegasusLife service charges

PegasusLife now own the former EDDC HQ site in Sidmouth. A comment from the Guardian on the poor value of their retirement flats:

“.. you might be interested to know that another of these retirement property firms (Oaktree Capital-owned Pegasus Life) has just jacked up its monthly fees by around 50%. They did this around a fortnight before a relative of mine was due to move into a new build scheme, which is about a year behind schedule. Her monthly fees (for a one-bed flat costing ~£500k) were set to go from £600 to around £900. Absolutely outrageous.”

https://www.theguardian.com/money/2019/nov/16/flat-retirement-builder-value-mccarthy-stone?CMP=Share_iOSApp_Other

Record number of adults living with parents

“Record numbers of young adults in their 20s and 30s are living with their parents, according to official figures, with critics blaming soaring house prices and rents.

The Office for National Statistics (ONS) said that over the last two decades, there has been a 46% increase in the number of young people aged 20-34 living with their parents. Over the same period, average house prices have tripled from about £97,000 to £288,000.

In total, 1.1 million more young men and women are now living at home, with the number increasing from 2.4 million in 1999 to 3.5 million in 2019. …”

https://www.theguardian.com/uk-news/2019/nov/15/record-numbers-of-young-adults-in-uk-living-with-parents?CMP=Share_iOSApp_Other

Urban sprawl – Greater Exeter, Lesser East Devon

From a correspondent:

This correspondent had a beautiful sunny autumn drive through the villages of West Hill and Woodbury yesterday morning. Then the enthusiasm of conservative Cllr Philip Skinner for a “network of linked villages being built in the North West Quadrant area of East Devon” came to mind.

Has not East Devon sacrificed enough Grade 1 agricultural land to build Cranbrook? Were we not told that this sacrifice would be EDDC’s contribution to housing need?

Then we found that Ottery St. Mary was sacrificed.

Feniton was sacrificed.

Exmouth was sacrificed. I could go on.

And now we are told the villages of Poltimore, Huxham, Clyst St Mary, Clyst St George, Ebford, West Hill, Woodbury​, Woodbury Salterton, Exton and Farringdon would be most likely to be sacrificed.

Has the ward councillors of the above villages consulted their constituents? Are the constituents of Ben Ingham and Geoff Jung happy that Woodbury will join Cllr. Skinner’s “bigger vision”?

Why aren’t our independent councillors telling Exeter that East Devon has done their bit, they do not wish urban sprawl and it is now the other surrounding councils turn?

Affordable housing: cause and effect?

Do you think these two things might be linked?

CAUSE?

“Redrow hit by shareholder revolt over bosses’ bonuses and controversial new chairman”

… Former boss and founder Steve Morgan, 66, will still be entitled to bonuses, even though he has retired.

He has a 20 per cent stake in the company worth £422million.

There has also been anger at former chief executive Tutte, 63, becoming executive chairman, in breach of City rules for best practice in the boardroom.

Tutte is not considered independent enough because of his previous years at the company.

It prompted investor advisory services Glass Lewis and ISS to urge shareholders to oppose both changes. …”

https://www.thisismoney.co.uk/money/markets/article-7657339/Redrow-hit-shareholder-revolt-pay-controversial-new-chairman.html?

EFFECT

“Affordable homes built at ‘pitiful’ rate despite increase

The number of affordable homes built in Britain has risen for the second consecutive year but analysts warned that the current level of housebuilding remained woefully inadequate.

Sixty thousand homes classed as affordable were supplied between April 2017 and March last year, according to official figures. While this is an improvement on the 43,473 built in 2015-16, it is still below the ten-year average of 62,400.

Affordable housing includes properties for social rent, shared ownership and other intermediate tenures. In 2017 the government set up a £7 billion fund to increase the supply of affordable homes by 40,000 within four years. As chancellor, Philip Hammond promised £3 billion to fund an extra 30,000 affordable homes through the scheme this year.

Scotland supplied the most affordable homes per person last year, at about 16 homes per 10,000 people.

England produced 8.5 homes per 10,000 people, although this was an improvement on six per 10,000 people in 2015-16. At 47,100, the number of affordable homes built in England last year was below the long-term average of 50,800. Wales also dragged on the long-term average, while Northern Ireland and Scotland registered growth.

The government also promised that 300,000 homes a year would be under construction by the middle of the next decade to increase affordability, but the present rate is about 220,000. Analysts have warned that the government will only hit its target if it increases funding for affordable housing because it can no longer rely on the private sector.

Marc von Grundherr, director of Benham and Reeves, an estate agency, said: “Just 60,000 homes delivered in a year and no change in the level of social housing in a decade is pitiful.

“Affordability is an issue not just in the London market but nationwide, and an issue that is largely exacerbated by a failure to build more homes at all levels to keep pace with a growing population and an increase in buyer demand. We must build more and this, in turn, will help boost affordability.”

Last month L&Q, one of Britain’s leading builders of affordable homes, withdrew from the market citing a “serious downturn” due to persistent uncertainty surrounding Brexit.

Source – TIMES (pay wall)

Are homes in National Parks REALLY more expensive than in East Devon?

Owl is informed that a correspondent carried out some research on house prices yesterday, using Rightmove and Zoopla, because they thought – is the old chestnut that housing in national parks ismore expensive – or do the Tories et al use it just an excuse to do nothing?

It turns out, Cranbrook is already on a par with 2 bed terrace house prices within Dartmoor national park. In East Devon, Budleigh Salterton and Sidmouth prices are higher, but maybe they attract a premium already as coastal locations – the premium is said to be about an extra 10%?

Hopefully, this should mean that prices will not increase dramatically in this area if we were to gain national park status…

Over to you those councillors who want to keep a tight hold on planning and a very loose hold on developers …

Planning, dogs and tails: another correspondent writes

“The East Devon electorate were, indeed, hoping for a significant change by voting for an Independent Council and, therefore, it is frustrating to read such controlling comments from the Tory Councillor Philip Skinner (he who was responsible for the extending mahogany table fiasco and who lives in the rural village of Talaton which is not one of the proposed GESP Clyst Villages) stating that  ‘this is a really exciting project and I hope people grasp it with the enthusiasm, that I have so we get the good things for the area that we live in’!

Who are the ‘we’ he is referring to? Perhaps, not the numerous residents of the 10 rural  village communities of Poltimore, Huxham, Clyst St Mary, Clyst St George, Ebford, West Hill, Woodbury, Woodbury Salterton, Exton and Farringdon who appear to be the prime targets for his exciting large scale development? Living in the small, rural idyll of Talaton, he should be aware that those who have also chosen to live in rural village communities may not wish them to mutate into sprawling suburbs of Exeter and, therefore, many may question Councillor Skinner’s motives?
Yes – we all have to be forward thinking – but aren’t these 10 villages the very essence of the intrinsic nature and indispensable quality of East Devon? Some may be persuaded that the proposed idyllic concept of happy, peaceful, picturesque environments labelled ‘Garden Villages’ would be pure nirvana – but, unfortunately, the vision in planning terms is not always what you get in reality! 
 
Sizeable growth in this North West Quadrant, without adequate road infrastructure improvements in the surrounding districts, already results in the regular gridlock of the entire highway network! ‘The cart before the horse’ approach of continuing large-scale commercial growth and adding more people to the equation before the provision of an appropriate, sustainable transport system is an unsatisfactory method for success.
 
There is no doubt that we must do better with designing new communities than we have in the past and East Devon District Council Planners  are fully aware that there are lessons to be learned from pursuing misguided judgements and courses of action by barking up the wrong tree!
Hopefully, the Independents are canines with character strength and principled, with adequate bite at the sharp end! Dogs can control their tails but often wagging lacks conscious thought!  Canine body language is so much more than just tail movements, so to achieve control, it is very important to pay attention to other factors. Furthermore, excessive tail wagging  can often be associated with fear, insecurity, social challenge or a warning that you may get bitten!

Tories pretend to try to solve problems they caused!

Er, who caused these problems?

“The housing secretary has warned that developers building poor-quality homes will have to “change their practices”.

Robert Jenrick called for a “systemic change” in Britain’s approach to planning and design, saying: “For too long there has been a misconception in the housebuilding industry that quality is the enemy of supply.

“In fact, experience shows us that it is those developments of the highest quality and the most attractive designs which are approved faster, sell faster and which are the most enduringly popular.”

Speaking at an event hosted by the Policy Exchange think tank and Create Streets, a research institute, he said: “Design now matters in this country and developers who bring forward poor-quality designs are going to have to change their practices.”

The government issued a national design guide this month setting out ten principles of good building. There was previously no accepted standard for new homes. The guide will be followed by a more detailed “national model design code” early next year. Local authorities will be encouraged to create their own versions of the code, giving communities a legal right to hold developers to account.

James Brokenshire, the former housing secretary, warned housebuilders in March that they must end “unacceptable” punitive costs and “nightmare” snagging problems in new homes if they wanted to continue to benefit from Help to Buy — the government-backed equity loan scheme that has supported home ownership. Some of its biggest housebuilder beneficiaries, such as Persimmon, have been criticised about the quality of their homes.

Mr Jenrick, 37, said that he would give “careful consideration” to how his department could use a revised version of the scheme in 2021 to stipulate improved build quality.

He also announced a “heritage preservation campaign” under which the government will commit £700,000 of funding for a campaign to encourage people to nominate buildings and assets in their local areas to be protected with listed status.”

Source: The Times

East Devon’s “North West Quadrant” of “linked villages” – or Exeter’s North East suburbs?

“The potential for strategic scale development in the North West Quadrant area of East Devon was identified and a network of linked villages, referred to as Clyst Villages, has been put forward

The concept of a ‘network of linked villages’ being built in the North West Quadrant area of East Devon will be investigated.

East Devon District Council’s Strategic Planning Committee on Tuesday morning unanimously recommends to the Cabinet that East Devon supports the Exeter and East Devon garden communities status.

The Exeter bid would see around 12,000 new homes built in the city as part of the Liveable Exeter vision and has already been agreed by their council. …”

“The villages of Poltimore, Huxham, Clyst St Mary, Clyst St George, Ebford, West Hill, Woodbury​, Woodbury Salterton, Exton and Farringdon would be most likely to be included as ones that could be expanded further, based on them being in the quadrant and close to existing infrastructure….”

Cllr Philip Skinner said: “We are going to have the housing numbers whether we like it or not, and we cannot put off and delay this as there is a much bigger vision than just focusing on that. This is a really exciting project and I hope people grasp it with the enthusiasm that I have so we get the good things for the area that we live in.

“This is an extremely important document that we should be signing up to this now and I am bang up for seeing this comes forward in the right way.” …

https://www.devonlive.com/news/devon-news/east-devon-could-getting-network-3454612

Abbeyfield care homes in Budleigh and Axminster under threat of closure

Owl says: The tip of a very big iceberg … with the Titanic speeding towards it.

“Devastated residents and families of those living at a care home which is under threat of closure fear it could result in the deaths of those who are very old and vulnerable.

Long-established Abbeyfield Shandford in Budleigh Salterton provides nursing and personal care for 28 people, and of those five are aged 100 or over. It employs 35 staff.

In January it first announced it was reviewing the service and then stated it would continue to be provided.

However, in September it began a consultation into the future of the home which will run until November.

Abbeyfield Society, who own the home, have said it will carefully consider all submissions from residents, relatives and staff before a final decision is made.

It has confirmed if a decision is made to close the home in Station Road, no residents will be expected to leave until January 2020 at the earliest.

The consultation has resulted in a petition being launched which has already been signed by hundreds of local residents. …

… “Abbeyfield have made out it’s a failing care home and needs huge upgrading and expenditure, but it doesn’t. The last inspection by the Care Quality Commission was this year and it was rated good.” …

[Abbeyfield spokesperson said] “In the case of Shandford, we carefully considered a number of factors, including whether the increasingly complex needs of residents can continue to be well served in a building which requires significant renovations to bring in it line with best-practice standards. …

“”This situation is further compounded by the long-term recruitment challenges we have faced, meaning that we have often relied on agency staff – despite the best efforts of the local management team. This not only places significant further financial pressures on the home at a time when the wider funding of social care is under strain, but also means we cannot always provide the continuity of care that residents deserve. …”

https://www.devonlive.com/news/devon-news/deaths-feared-care-home-closed-3438701

The Great Help-to-Buy ripoff

“Building chiefs cash in on Help to Buy”

Bosses at Persimmon, Barratt and Bellway have been handed shares worth more than £12million.

Persimmon chief executive David Jenkinson exercised share options worth £10million under the housebuilder’s controversial bonus scheme, while two top Barratt executives received stock worth nearly £1million, and two Bellway bosses were handed performance-linked shares worth £1.6million.

The bonanza came just a day after Tony Pidgley, the founder and chairman of rival builder Berkeley, sold shares worth £42million.

His deal took the amount he has made from selling stock in the past two and half years to £166m.

Last night critics condemned the share awards, which came just a week after figures showed the rate of house building in the UK had hit a three-year low.

Developers such as Persimmon, Barratt and Bellway – but less so Berkeley – have also raked in record profits off the back of Help to Buy, a taxpayer-funded scheme that lends cash to buyers.

Reuben Young, a spokesman for housing campaign group Priced Out, said: ‘The scandal is these payouts are only made possible by Help to Buy, which has taken developer profits into the stratosphere by investing public money into rising house prices.’

Persimmon’s Jenkinson, 52, received 411,084 shares worth £9.7million at yesterday’s prices. After taxes he received 217,874 shares worth £5.2million and he is required to hold on to them for at last one year.

Barratt chief executive David Thomas received 64,182 shares worth £431,000 through a bonus plan and deputy chief Steven Boyes received 50,795 worth £341,000.

Bellway awarded 30,667 performance-linked shares worth about £1million to boss Jason Honeyman and 17,823 shares worth about £600,000 to finance chief Keith Adey.

The final amount of shares they receive will depend on whether they hit performance targets.

Meanwhile, Pidgley has sold shares in the past six months that have made him £79.2million.

That included 1m he sold in July for £37.2million and a further 1m on Tuesday for £42million, cashing in on his company’s rising share price.

The sales came after Pidgley previously sold a total of 2.5m shares for £86.8million in 2017 – taking the amount he has made since then to a staggering £166million.

The building firms declined to comment.

https://www.thisismoney.co.uk/money/markets/article-7585531/Building-chiefs-cash-Help-Buy.html

PegasusLife says Knowle to retain age restriction (for now?)

“… When approached for a comment by the Herald, a PegasusLife spokesman said: “The approved scheme at Portishead has a very different level of care requirement in terms of hours of care required and scope of what is included in the definition of care compared to the Sidmouth development.

“We have no plans to submit an application to remove the age restriction or change the use class at Sidmouth.”

https://www.sidmouthherald.co.uk/news/developers-pegasuslife-assure-the-same-won-t-happen-in-sidmouth-as-it-did-in-portishead-1-6325896

BUT PegasusLife is merging with two other companies

https://eastdevonwatch.org/2019/10/05/big-changes-for-pegasuslife-maybe-knowle-wont-be-retirement-homes/

and will soon be called “Lifestory” – will new brooms sweep in different directions?

Exmouth developer wants to build private houses before affordable ones …

Yeah, right … and then somehow the houses don’t get sold (maybe because people don’t know where the affordable houses will go if ever they are built) and then the affordables disapear … and then all high-cost housing gets built … and then suddenly they all sell …

Developer behind 36-home Exmouth scheme asks for more time to deliver last affordable dwellings – so it can sell private properties

Persimmon in the deep, deep manure yet again on leasehold houses

“Persimmon is heading for a bitter showdown with families who claim the housebuilder mis-sold them homes on toxic leasehold deals.

Hundreds of its customers bought leasehold houses and now claim they are trapped by ratcheting rent bills that have made it impossible to sell.

But the company, which is the UK’s most profitable developer, is playing hardball and has told desperate customers that it ‘does not accept’ their complaints.

Along with other developers, Persimmon has been banned from selling leasehold houses after a public outcry.

Persimmon and others were accused of charging extortionate ground rents, some of which rose dramatically over time, along with a raft of hidden charges.

Leaseholders effectively buy the right to live in a property for an agreed period, rather than ownership of it outright.

However, an inquiry by MPs earlier this year found that many leaseholders did not appear to have fully understood the deal.

In a recent row with Cardiff council, Persimmon was accused of mis-selling leasehold homes. It offered residents the freeholds to their properties at no charge as part of an out-of-court settlement.

Campaigners now argue all its leasehold customers across the country should receive similar compensation.

But in a letter sent to customers and seen by the Mail, the company rejected claims householders were misled.

It claimed staff would have explained the terms of the homes to customers during the sales process, that their solicitor should have advised them about it and that mortgage lenders would have also assessed the property at the time.

A separate survey by the Solicitors Regulation Authority also found one fifth of people sold leasehold properties were not even told the difference between leasehold and freehold homes.

MPs called for an investigation into possible mis-selling. They lambasted solicitors for being too cosy with developers and failing to warn clients about the rip-off deals.

Following their report, the Competition and Markets Authority (CMA) launched a probe.

Sir Gary Streeter, Tory MP for South West Devon, accused the firm of telling ‘blatant’ lies to leaseholders in Plymouth, part of his constituency, during the sales process.

A Persimmon spokesman insisted the decision to ‘gift’ ownership to leaseholders in Cardiff was ‘not to do with the mis-selling of leasehold properties’, adding: ‘We firmly dispute the fact that the customers were not aware the properties were being sold on a leasehold basis.

Any suggestion that the decision by Persimmon to gift the freeholds was in relation to mis-selling of leaseholds is false and misleading.’

‘All customers buying leasehold properties are informed by the sales team at the time of purchase that the properties are leasehold and not freehold.’

‘It feels like we have been tricked’

Grandparents Noelle and Alf Lutton bought their five-bedroom home three years ago for £250,000 – but they have still been asking for problems to be fixed

Noelle and Alf Lutton claim the punitive terms of their leasehold home were not made clear to them by Persimmon.

The grandparents bought their five-bedroom home three years ago for £250,000 – but they have still been asking for problems to be fixed.

In addition, they face having to pay £150 in ground rent every year – a rate that increases every decade – and must fork out so-called ‘permission fees’ of £250 if they want to make even minor changes to the property.

They claim they were never told they would have to pay these charges. Former customer services worker Mrs Lutton, 75, says the couple had always previously lived in freehold properties but were not given that option when buying their current home in Market Deeping, near Peterborough.

Instead, they say a Persimmon sales representative verbally promised they could buy the freehold for ‘a couple of hundred pounds’ two years after the initial sale.

But Persimmon later quoted them a price of £3,750. And although it later reduced this to £500, the company insists they would still have to pay permission fees even if they now acquired the freehold.

‘Had we known then what we know now, we would never have bought the property,’ Mrs Lutton said. ‘We weren’t told about any of the fees we would have to pay. It feels like we have been tricked.’

A Persimmon spokesman said: ‘The details of the ground rent, associated fees and covenants were included within the contract and documentation at the time of purchase.

‘Following completion, Mr and Mrs Lutton raised a number of snagging issues with their property. The last one of these is due to be addressed shortly.’ “

https://www.thisismoney.co.uk/money/news/article-7560423/Housebuilder-Persimmon-fresh-row-toxic-leases.html?ito=rss-flipboard

“Brits want Boris Johnson to prioritise building more council houses over right to buy scheme, survey reveals”

“[A] survey found 37 per cent of voters said building more social housing is their top demand.

This was joint with tackling homelessness.

This compares to the 29 per cent who want No10 to prioritise homeownership schemes like right to buy.”

https://www.thesun.co.uk/news/10014275/boris-johnson-council-houses-right-to-buy/

Bleak outlook for children in social housing

“Thousands of homeless children are growing up in cheaply converted shipping containers and cramped rooms in former office blocks; 130,000 families in England are being crammed into one-bedroom flats; and social housing residents of a block of flats in east London engulfed in flames say they are being forced to move back despite safety fears.

These are just a few recent examples of how the UK housing crisis is affecting the country’s poorest and most vulnerable citizens. But how much notice is the prime minister, Boris Johnson, taking?

He has made spending pledges for the NHS and police, but there is little to suggest Johnson will address the UK’s shortage of truly affordable homes for rent. Housing expert Colin Wiles points out that during Johnson’s two terms as London mayor, he redefined the term “affordable” in 2011 to mean rents of up to 80% of market rents – extremely expensive in the capital. “Johnson’s philosophy, in a nutshell, is that homeowners mean Tory voters and social housing means Labour voters,” says Wiles. “Johnson in No 10 signals a gloomy outlook.” …”

https://www.theguardian.com/society/2019/sep/25/social-housing-crisis-builds-government-passes-buck?CMP=Share_iOSApp_Other

“Empty homes in England up by 11,000 last year, study shows”

“The number of empty homes in England increased by almost 11,000 last year, a study suggests, prompting calls for urgent action to bring them back into circulation to help tackle the housing crisis.

Research by the pressure group Action on Empty Homes and Nationwide building society indicates that last year saw the fastest rise in long-term empty homes in England since the recession. …

There are now more than 216,000 long-term empty homes in England, equivalent to 72% of the government’s annual new homes target, at a time when more than a million families are on waiting lists for local authority housing, said the report.

Empty homes are found in all council tax bands but are particularly prevalent in the highest band (band H) and the lowest (band A), the report added. …”

https://www.theguardian.com/society/2019/sep/23/empty-homes-in-england-up-by-11000-last-year-study-shows?CMP=Share_iOSApp_Other