Local Government Association wants two affordable housing loopholes to be closed

Permitted development rules allowing offices to be converted into housing without planning permission are exacerbating the nation’s housing affordability crisis and should be scrapped, the Local Government Association has said.

The LGA has also urged the government to drop proposed plans, contained in the Budget, to extend the rules to allow upwards extensions to be built without planning permission and allow the demolition of existing commercial buildings for new homes without planning consent.

The Association claimed that communities had missed out on more than 10,000 affordable homes in the past three years as a result of government rules on permitted development.

According to the LGA, latest figures show that since 2015, a total of 42,130 housing units in England have been converted from offices to flats without having to go through the planning system. “As a result, they included no affordable housing or supporting investment in infrastructure such as roads, schools and health services.”

The LGA added that while this amounted to approximately 7% of new homes nationally, in some parts of the country it represented a much higher proportion of all new housing. Office to residential conversions under permitted development rules accounted for 40% of new homes in Islington, Welwyn Hatfield, Mole Valley, Croydon and Derby in 2017/18.

A survey of councils in England has meanwhile found concerns about the rules, finding that:

Around nine out of 10 councils were concerned about the quality/design and the appropriateness of the location of housing as a result and almost six out of 10 were concerned about safety.

Around two-thirds thought that both contributions by developers to affordable housing and contributions for other infrastructure through section 106 agreements had reduced. A similar proportion (61%) thought that demands on local infrastructure/services had increased.

60% of councils said they were concerned about the demand being placed on health and social care services and school place planning as a result of homes being built through permitted development rules

Cllr Martin Tett, LGA Housing spokesman, said: “Permitted development rules are taking away the ability of local communities to shape the area they live in, ensures homes are built to high standards with the necessary infrastructure in place and have resulted in the potential loss of thousands of desperately-needed affordable homes.

“The loss of office space is also leaving businesses and start-ups without any premises in which to base themselves.

“Extending permitted development rules risks exacerbating these problems.”

http://www.localgovernmentlawyer.co.uk/index.php

“Property downturn could reduce number of affordable homes built by 25%”

“major downturn in the housing market could reduce the number of affordable homes built by a quarter, the property firm Savills has warned.

Savills estimates that about 100,000 new homes a year – a third of the government’s 300,000 target – need to be priced at levels below the going market rate, whether for rent or for sale.

However, only 43,498 such homes were built in England in the financial year 2017-18, albeit 10% higher than the previous year, according to government figures.

Many were built for so-called “affordable rent”, where rental costs are capped at 80% of local private sector rents.

Negative gearing report finds housing less affordable now than at height of the boom.

About half of affordable new homes, 22,000, were built through section 106 of the housing act, for social rent, affordable rent, intermediate rent and shared ownership.

Section 106 is a planning clause requiring developers to include a proportion of affordable housing in their developments, which is often sold to housing associations.

It accounts for 53% of all affordable homes built, passing the 50% mark for the first time in six years.

However, if there was a major housing downturn akin to the late 1980s, early 90s or 2008, when prices and the volume of transactions crashed, the number of section 106 affordable homes would be halved to about 11,000, Savills predicts.

A housing slowdown is also likely to lead to fewer of those homes being constructed. House prices have been falling in London and parts of the south-east for more than a year but values are still rising elsewhere in the UK.

Chris Buckle, Savills’ research director, said: “From the end of the last cycle in 2007-8, we saw a roughly 50% fall in section 106 affordable housing completions to fewer than 4,000 homes.

“Although we are not predicting a market downturn, the housing market is slowing and this could result in fewer section 106 affordable housing completions.”

The Savills analysis comes after official figures showed the number of new homes built for social rent has fallen by almost four-fifths in a decade – while more than 1 million families are stuck on waiting lists for council housing in England.

Only 6,463 homes were built in England for social rent in 2017-18, down from almost 30,000 a decade ago.

In London and southern England the affordable housing shortage is particularly acute. An estimated 42,500 households need homes priced below market rates every year but over the last three years only an average of 5,600 were built a year, leaving an annual shortfall of 36,900, Savills says.”

https://www.theguardian.com/business/2018/nov/26/property-downturn-could-halve-building-of-affordable-homes-savills

More than 6,000 homes empty, one-third for more than six months

More than 600,000 homes across England are currently vacant, with a third empty for six months or more, government figures show.

Official figures obtained by Attic Self Storage revealed the number of vacant properties has increased over the last few years to a 605,891 high. At the same time, homelessness has also increased with the latest government figures showing more than 4,700 people are sleeping rough on any given night in England. …”

https://www.housebeautiful.com/uk/lifestyle/property/a25261859/vacant-homes-england/

“‘Our new-build [Bovis] home has 354 defects’ “

“Two years after buying their £325,000 house from developers Bovis, Craig Wakeman and partner Tracey Bickford are still waiting to move in after discovering their dream home was riddled with 354 defects, many of them structural.

The couple told BBC Radio 5 Live Investigates buying the house was “one of the worst decisions we’ve ever made”.

Nine out of 10 new home buyers surveyed by the New Homes Review found defects in their houses.

Bovis apologised that the family’s “customer journey with us has been so disappointing over the last two years,” and said it was “completely focused on putting right what has gone wrong”. …

https://www.bbc.co.uk/news/business-46302905

East Devon – higher house prices, higher rents

“House prices in the area increased by 1.6 per cent in September, contributing to a 3.6 per cent rise over the last 12 months.

The latest data from the Office of National Statistics shows the average property in the area sold for £286,529, significantly higher than the UK average of £232,554.

Across the South West, property prices have risen by 4.3 per cent in the last year, to £260,142.

The data comes from the House Price Index, which the ONS compiles using house sale information from the Land Registry.

The average homeowner in East Devon will have seen their property jump in value by around £53,000 in the last five years.

“A further increase in regional house prices makes positive reading, but in reality is disastrous for first time purchasers, and those already on the property ladder with ambitions to enhance their living accommodation,” said Exmouth estate agent Sarah Dunn.

“Having been working within the property industry for 34 years I personally have never seen so few first time buyers. Banks and building societies have pulled up their drawbridges and need to relax their lending criteria.

“Rents are totally disproportionate to the average monthly mortgage payment, and most first time buyers’ capacity to save is eaten away in high rents. Our next generation of first time buyers have been forced into rented accommodation for well over a decade now – new homes values are far too high.

“National developers need to start building ‘starter homes’ again, not small two bedroom houses crammed into small spaces, with no parking, and starting prices of £300,000.”

The figures also showed that buyers who made their first step onto the property ladder in East Devon in September spent an average of £220,486, around £40,000 more than it would have cost them five years ago.

Between August last year and July this year, the most recent 12 months for which sales volume data is available, 2,977 homes were sold in East Devon, 6 per cent fewer than in the previous year.”

http://www.exmouthjournal.co.uk/news/house-prices-disastrous-first-time-buyers-east-devon-1-5792077

Just managing? Need affordable housing? Tough – you might have to wait 170 years!

“Construction of homes for social rent drops 80% in a decade:

The number of new homes built for social rent has fallen by almost four-fifths in a decade, according to official figures that come as more than 1 million families are stuck on waiting lists for council housing in England.

Figures released by the Ministry for Housing, Communities and Local Government show just 6,463 homes were built in England for social rent in 2017-18, down from almost 30,000 a decade ago.

Condemning the lack of new social housing, Labour said that a the current rate of construction it would take at least 170 years to house the families on waiting lists.

John Healey, the shadow housing secretary, said: “These figures confirm the disastrous fall in the number of new affordable homes for social rent under the Conservatives.”

Despite the sharp decline, the overall number of properties constructed in England that were classified by the government as affordable rose by 12% last year to 47,355.

The bulk were built for so-called “affordable rent”, where rental costs are capped at 80% of local private sector rents. Affordable rent properties are typically favoured by the building industry because developers tend to make larger profits on them.

Unlike affordable rent, social rental properties also take into account local incomes as well as house prices. Campaigners have criticised the term affordable rental properties for “turning the English language on its head”, saying they are still unaffordable to many people in London and the south east.

The number of affordable rent properties has soared since they were introduced by the Conservative-Liberal Democrat government in 2011, as the number of social rent properties has declined. Almost 27,200 were built last year, up from about 24,300 in 2016-17.

About 57% of all new affordable homes built last year were for affordable rent, while just 14% were for social rent. The rest are intermediate affordable housing, which includes shared ownership properties and affordable home ownership schemes.

In England, about 1.25 million families were registered on the waiting list for social housing between 2016-17. About two-thirds have been waiting for more than a year. On average, an English local authority has more than 3,500 families on its books.

In her Conservative party conference speech last month, Theresa May said a cap on local authority borrowing for the construction of new homes would be scrapped, a step designed to increase the number of new homes built across Britain.

Patrick Gower, a residential research associate at the estate agency Knight Frank, said the prime minister would be encouraged by the 12% rise in the number of affordable housing completions.

He said the number of affordable homes starting to be built last year also increased by 11% to 53,572. “The number of homes likely to complete in the coming two to three years is also likely to increase,” he added.

Increasing the number of affordable homes has become a top priority amid a national housing shortage exacerbated by high house prices. High rental costs have added to the pressures facing households across the country.

Councils used to build more than 40% of affordable or social homes in the 1970s but there has been a shortage of properties since Margaret Thatcher introduced right to buy in the 1980s.

Mark Robinson, the chief executive of Scape Group, a public sector construction outsourcer, said: “Councils must be empowered to build social housing themselves, as they were in the 1970s.”

https://www.theguardian.com/society/2018/nov/22/construction-of-homes-for-social-rent-down-80-percent-on-a-decade-ago-england-families-waiting-lists

“At least 320,000 homeless people in Britain, says Shelter”

“At least 320,000 people are homeless in Britain, according to research by the housing charity Shelter.

This amounts to a year-on-year increase of 13,000, a 4% rise, despite government pledges to tackle the crisis. The estimate suggests that nationally one in 200 people are homeless.

Shelter says its figures, which include rough sleepers and people in temporary accommodation, are likely to be an underestimate of the problem as they do not capture people who experience “hidden” homelessness, such as sofa-surfers, and others living insecurely in sheds or cars, for example.

Newham in east London is ranked as England’s number one homelessness hotspot, with at least one in every 24 people in housing insecurity. More than 14,500 people were in temporary accommodation in the borough, and 76 were sleeping rough.

In the capital as a whole, 170,000 people – equivalent to one in 52 – have no home. Westminster had the most rough sleepers, 217, followed by Camden, with 127. In Kensington and Chelsea, the UK’s richest borough, there were over 5,000 homeless people – equivalent to one in every 29 residents.

The figures indicate how homelessness and housing insecurity is spreading beyond its traditional heartland of London into the wider south-east and Midlands, and the impact of high rents and welfare cuts ripples outwards.

Outside the capital, high homelessness rates were recorded in Birmingham, Luton, Brighton & Hove, Slough, Dartford, Milton Keynes, Harlow, Watford, Epsom, Reading, Broxbourne, Basildon, Peterborough and Coventry.”

https://www.theguardian.com/society/2018/nov/22/at-least-320000-homeless-people-in-britain-says-shelter

“Berkeley Group [housing developer] bosses were accused of engaging in years of bribery”

Owl says: cannot recall using the category “Sleaze” so often as in the last few weeks.

“Bosses at the housebuilding firm Berkeley Group were accused of engaging in years of bribery with a partner at a major estate agent, according to papers filed in a pair of lawsuits brought against Berkeley by a former finance director in 2014 and 2015.

The claim was among numerous “whistleblowing” allegations by Nicolas Simpkin, 49, who served on the board of the £2.7bn turnover company from 2009 until he was fired in 2014.

Berkeley ​paid £9.5m ​to Simpkin​ in an out-of-court ​settlement​, according to the company’s annual report published in August. It also stated that the allegations had been withdrawn as part of the deal. On Wednesday, Berkeley said the settlement had been reached after it had “thoroughly” investigated the allegations and found them to be “unfounded”.

After an acrimonious dismissal in September 2014, Simpkin filed an unfair dismissal case the following December and then a 2015 breach of contract case in the high court.

According to court documents in the second case, Simpkin had made a series of whistleblowing allegations in his 2014 case, all of which were denied by Berkeley. The company argued that Simpkin had failed to raise and act on his claims. As the cases were settled, none of the allegations were ever tested and they remain unproven.

High court papers obtained by the Guardian and the investigative website Finance Uncovered show that Simpkin accused Berkeley’s chairman, Tony Pidgley, who earned £174m from the company over the previous decade, of being “consistently engaged in bribing one of the partners in a major estate agency with whom Berkeley Group regularly dealt in relation to land acquisitions” between 2005 and 2010.

The documents further ​detail how Simpkin claimed that “this bribery included” Pidgley “making expensive gifts” to the estate agency partner; extending a Berkeley loan to the same partner, which the housebuilder’s “managing director [Rob Perrins] later … instructed the then financial controller to write off”; and allowing Berkeley to carry out work at the estate agency partner’s property “without the partner being properly charged”.

According to the court papers Simpkin said he had been “staggered” when he was told in 2011 that the loan had been written off four years earlier.

While Simpkin withdrew his legal cases as part of the out-of-court settlement, the ​substance of the allegations remains in court filings because Berkeley Group used a 113-page high court defence document to dismiss its former director’s claims.

In those papers, Berkeley said the facts underpinning many of his allegations were wrong, as it also denied his claims that between 2005 and 2014:

• Pidgley benefitted from “around” £660,000 of Berkeley Group’s money that had been “intended to be used on fitting out” one of the chairman’s luxury London flats “on the pretence the flat was to be used as a show home”.

• Berkeley’s staff were “pressurised to make false claims to recover VAT in relation to [Pidgley’s] property”.

• There had been “inappropriate payments by the Berkeley Group” to Pidgley’s son.

• Perrins had “deliberately and unlawfully provided quantities of non-public and price sensitive information to a shareholder in May 2014”.

In its annual report published in August, Berkeley Group said: “During the period the company settled the proceedings brought by Mr Nicolas Simpkin, its former finance director, in the employment tribunal and high court. Under the settlement Berkeley made a payment of £4.95m to Mr Simpkin and a further payment of £4.55m towards his legal fees and disbursements.”

Simpkin, who was earning a base salary of £330,000 a year but who had pocketed a £1.2m package in the previous 12 months, was sacked in September 2014.

The court filings show that Berkeley’s board claimed he had been performing poorly in his role and had lost the confidence of senior colleagues.

If Simpkin had succeeded in his legal claims he would have been entitled to his share in a bonus scheme set up for Berkeley executives, which would have been worth many millions of pounds to him.

As well as denying all the whistleblowing claims, Berkeley said Simpkin had failed to raise any of the allegations with the group solicitor, the board or independent directors of the company.

The company added that if any of the allegations were true, Simpkin should and could have taken action, adding he would have been complicit in any criminal activity if his claims were accurate.

A Berkeley spokeswoman said the settlement dated back 18 months, adding: “There was a thorough and extensive investigation by a QC and a senior lawyer from a major law firm which concluded these allegations were unfounded, following which Mr Simpkin withdrew his allegations and settled all his claims.”

Simpkin said: “The counter-allegations made by Berkeley against me in the high court documents are unfounded, untested, plainly vexatious and risible … Following the payment of damages the court proceedings were withdrawn.

“I am bound by confidentiality terms which prevent me from making any comment on the other issues you raise.”

https://www.theguardian.com/business/2018/nov/21/berkeley-group-bosses-were-accused-of-engaging-in-years-of-bribery-allegations-withdrawn-court-settlement

London unsold homes numbers jump – wrong homes in wrong places and Brexit uncertainty blamed

Domino effect?

“London’s stock of completed but unsold homes has surged by almost half this year as Brexit uncertainty and affordability issues dog the housing market.

The number in the capital jumped to 2,374 units as of Sept. 30, the most on record and up from 1,595 at the end of 2017, according to data compiled by Molior London. The borough with the biggest stockpile is Wandsworth, an area that borders the River Thames, followed by Croydon, an outer borough in the south of the city.

Some of this excess has built up because it’s the wrong product at the wrong pricing for what people want to, and can afford to buy,” said Tim Craine, founder of the property research firm. “For the rest, it’s a case of bad timing due to the lull in the market that’s come about due to Brexit.”

Britain’s housing market is slowing after a multi-year boom as the U.K.’s impending divorce from the European Union weighs on sentiment and prices remain out of reach for many potential buyers. It now takes the average Londoner 14.5 times their annual salary to purchase a home, the highest multiple ever, according to Hometrack.

Homebuilders fell on Tuesday, led by Barratt Developments Plc, which dropped 2.2 percent as of 10:59 a.m. in London, while Taylor Wimpey Plc slipped 2 percent. Both were among the 25 worst performers in the benchmark FTSE 100 Index. Crest Nicholson Holdings Plc fell 2.1 percent.

Overseas buyers from Asia to the Middle East piled into London property in recent years as a weak pound and price gains made the capital’s real estate an attractive investment. Developers began building higher-end homes to capitalize on that demand, and many have been left holding empty units as foreign investment dwindles amid a rise in property taxes.

Asking prices for U.K. homes fell for the first time since 2011 in October, data from Rightmove show, with prices declining the most in the center of London. Asking prices dropped 0.2 percent overall, while in Greater London, they declined 2.4 percent annually. Homes located within London’s Zone 1 area lost the most, with a 6.9 percent retreat on the year to an average of 1.3 million pounds ($1.7 million).”

https://www.bloomberg.com/news/articles/2018-11-20/london-s-stockpile-of-unsold-homes-jumps-almost-50-to-a-record

Greater Exeter – city council plans and housing need

Now that Exeter is planning (at least) 450 homes on sites adjacent to Exeter bus station (and possibly even more), is this 450 fewer homes that the rest of Greater Exeter has to supply to “meet Exeter’s needs”?

https://www.devonlive.com/news/business/new-300million-exeter-bus-station-2236936

Cranbrook – no more unaffordable affordable homes or even affordable affordable homes?

“To date 10% of all homes at Cranbrook have been ‘affordable by design’ properties, whose maximum floor spaces have been limited by the terms of the existing S106 agreement. These are properties whose floor spaces have been below that which would normally be seen for two or three bedroom properties and which therefore have a lower open market value; they do not fall under the definition of affordable housing.

With a drive to improve people’s health and wellbeing at the town and lenders being increasingly reluctant to lend on the current terms of the S106 agreement, Officers consider it appropriate to cease the requirement for these houses to be delivered. A deed of variation to the S106 agreement is being progressed to deal with this matter.”

Click to access 271118strategicplanningcombinedagenda.pdf

“Is there a crisis of quality in new-build homes?”

Some of the stories in the article are both heart-rending and almost unbelievable and, almost as expected now, involve Persimmon/Charles Church. Here is the conclusion of the article:

“… Stories about poor quality are far from uncommon with buyers of new homes in Britain. Just over half (51%) of new home owners have experienced major problems with their properties including issues with construction, unfinished fittings and faults with utilities, according to housing charity Shelter.

Currently, all new homes must come with a warranty from an accredited provider. About 80% have a 10-year warranty from the NHBC, an insurance company that says it inspects “every home” registered with them. During the first two years of the policy, the NHBC says the builder is responsible for fixing any defects which do not comply with its technical standards. During years three to 10, the NHBC provides direct insurance cover for damage caused by defects in specific areas of the home.

The NHBC paid out £84.8m in claims between 2016-17.

Campaign group HomeOwners Alliance says the current system does not allow for quality of workmanship and fittings. “Although work is meant to be inspected independently at key stages, the inspection regime is currently failing homebuyers,” says its chief executive Paula Higgins. Instead, she argues, there needs to be a higher body policing the sector.

“We’ve been calling for a new homes ombudsman for a long time now as we’re inundated with calls from our members about shoddy workmanship and flawed properties yet there is currently no one holding these developers to account,” she says. “These firms are under pressure to build and with a shortage of skills in the sector corners get cut.”

A spokesman for Home Builders Federation says: “Inevitably when you are building hundreds of thousands of any product, in a field in all weathers there will be some, usually very minor issues in a small number of cases. In these instances it is the builders’ responsibility to correct those issues to the satisfaction of the customer.”

https://www.theguardian.com/money/2018/nov/17/quality-build-homes-charles-church-buyers?CMP=Share_iOSApp_Other

“Funding [loan] agreed for Axminster relief road that will end gridlock in the town centre

This loan of £7 million is being taken out based on an expectation that developers will pay it back … good luck there councillors, especially as developers are Crown Estates and … drum roll or scary music … PERSIMMON!

https://www.devonlive.com/news/devon-news/funding-agreed-axminster-relief-road-2211212

“No let-up in housing crisis: Developers slow house-building ahead of Brexit and government targets will be missed”

“Britain’s housing crisis is not set to improve in the near future as official figures today revealed developers have slashed the rate at which they are building new houses ahead of Brexit.

Government figures revealed a bit more than 222,000 new homes were delivered in 2017/18, up just 2 per cent on the previous year and well below the government’s promised target of 300,000.

The rate of growth for residential construction meanwhile has halved, from 11.9 per cent in 2016/17 to 6.4 per cent in 2017/18.

… ‘Housebuilders and would be-buyers alike are nervous about what the fall-out from Brexit could be and that’s hit the number of net additional dwellings hard.’

Grainne Gilmore, head of UK residential research at Knight Frank, said warned that other data was already pointing to a further slowdown in housing completions to come.

‘Net additions are still around 26 per cent lower than the government’s 300,000 annual target while separate housing starts data, which captures information on new homes being started on site, shows a moderation in activity that could weigh on housing completions in 2020/21,’ she said.

Meanwhile a trading statement from Bovis Homes released this morning blamed ‘uncertainty surrounding Brexit’ for a fall in buyer interest.

It said: ‘Our sales rate per outlet per week for the year to date is 0.51, with pricing in line with our expectations. Whilst we have maintained our rate of sale, the uncertainty surrounding Brexit has impacted discretionary buyers.’

Taylor Wimpey has also said it expects flat sales growth next year due to Brexit uncertainty, but claimed there is potential for ‘significant growth’ after 2020.

It comes amid a slew of data pointing to a gloomy outlook for Britain’s housing market.

Earlier this week UK Finance, the trade body representing British banks, confirmed that mortgage lending in September was down on a year ago as people sit on their hands to see what happens with Brexit.

First-time buyer numbers have dropped 4.5 per cent since September 2017, households moving home fell 8.4 per cent over the same period and landlords purchasing properties slumped 18.8 per cent.

… Gilmore said today’s construction figures presented ‘a headache for policymakers’ in London particularly, with the net number of new dwellings in the capital falling by 20 per cent over the year.

‘Only 12 of the 33 boroughs in the capital reported a rise in the number of new homes provided in the year to March,’ she said. “

https://www.thisismoney.co.uk/money/mortgageshome/article-6393103/Housing-crisis-set-continue-developers-slow-housebuilding-ahead-Brexit.html

People using self-storage units permanently because their homes are too small

“… The average household in the UK is 2.4 persons, larger than both Germany and France, yet we have the smallest average property size, making the UK population “one of the most squeezed in Europe”, according to the SSA.

So it’s not surprising that people are turning to self-storage, with it cheaper to rent extra space than it is to buy or rent a bigger home, says Rennie Schafer, chief executive of the SSA.

A “room away from home” is how he describes it. …”

https://www.bbc.co.uk/news/business-46100793

“Rule changes ‘risk new social housing black hole’ in England”

“A proposal designed to speed up the creation of new homes in England risks “supercharging” a get-out clause allowing developers to build properties without providing social housing, the charity Shelter has said.

The government has proposed new rules that would allow builders to buy and demolish commercial buildings and create new homes without planning permission.

The plan would extend permitted development rights, which allow the conversion of office buildings to homes.

The rules have also allowed developers to build tiny homes, some as small as 13 sq metres.

Almost one in 10 new homes created last year were created this way, but councils do not get the chance to see plans before the homes are built and miss out on planning fees, as well as contributions towards affordable homes.

Shelter said extending the right could create a new “social housing black hole” if they allowed more developers to avoid building affordable homes as part of their project.

The charity said in a handful of local authorities more than half of new homes had been delivered like this, despite the need for social housing in those areas.

In Stevenage, for example, 73% of new homes built last year came through permitted development rights, while in Nottingham 60% of its 975 new homes were created this way.

At the same time, 159 affordable homes were delivered in Stevenage, and its waiting list for social housing stood at 1,862 households. In Nottingham, 5,188 households were waiting for social housing, and 143 affordable homes were built.

Under the proposal in the consultation paper delivered on budget day, the government says the current system “may encourage an owner to change use rather than seek to redevelop the site, which is likely to allow for a higher density development”.

It also raises the question of contributions for affordable homes, asking for input on how this money could be secured for projects that do not need planning permission.

Polly Neate, the CEO of Shelter, said: “Anyone can see it’s wrong to give developers a licence to dodge social housing when hundreds of thousands of people are homeless.

“We need to raise the alarm so the government halt these plans and instead look to bring down the cost of land to build the social homes we need.”

The Town and Country Planning Association recently voiced its concerns about the plan to extend the permitted development rules, warning that it could deprive local authorities of essential funding and risked “creating poor living conditions for vulnerable people”.

“Under the existing system of permitted development, 1,000 new flats can be built in an old 1970s office building or industrial estate, and the local council can’t require a single square foot of play space for the children who live there – and the communities have effectively no say,” said its interim chief executive, Hugh Ellis. “This cannot become the norm.”

A spokesperson for the Ministry of Housing, Communities and Local Government, said: “No one benefits from delays in planning applications. We expect these proposals to provide flexibility, reduce bureaucracy and make the most effective use of existing buildings.

“We are committed to delivering more affordable housing and we are investing £9bn.”

https://www.theguardian.com/society/2018/nov/13/government-rules-risk-black-hole-in-social-housing-affordable-homes

“Westminster council to ban ‘super-size’ new homes”

And lawyers will already be planning to find loopholes! In fact, one has already been “designed in” – any big home currently split into flats will be allowed to return to one dwelling. Watch the oligarchs use that one!

But, imagine if EDDC (or even Greater Exeter) had a new development plan to build only houses put up for sale at no more than 5 times the average annual local salary …..!

“Westminster city council is to ban new “super-size properties” built for oligarchs and other members of the global ultra-rich elite in order to free up space for more affordable homes.

The council, which includes Mayfair, Knightsbridge and Belgravia, said it would restrict new homes larger than 150 sq metres (1,615sq ft) because “Westminster’s position in the global housing market can create demand for super-size properties which underoptimise development of Westminster’s scarce land resource”.

Westminster said banning “Monopoly board-style” homes would help free up more space for affordable homes for Londoners. The new size ban is part of Westminster’s 2019-40 development plan released on Monday night, which also included a commitment to build more than 10,000 affordable units by 2040.

The council said 150 sq metres was 50% larger than the average private home in the borough and would “still enable generously sized homes to be developed to meet development from the prime market, but balances that against the other, more strategic housing need of the city”.

The size of the average home in the UK has been shrinking in recent years. Homes from the most recent decade have about 67.8 square metres of living space, according to LABC Warranty, which is not much more than both decks of a London bus, at 55 sq metres. The figure factors in living areas, kitchens and bathrooms, but does not include hallways or staircases.

The mega-mansion ban is the latest move in Westminster’s efforts to tackle growing inequality in the borough, where very few people can afford to buy or rent a home on the open market.

Earlier this year the council blocked a plan to create a 1,580 sq metre £40m home in Grade I-listed terrace overlooking Regent’s Park, telling the developer to “wake up” to the housing crisis. “Our city’s golden postcodes must not be used for Monopoly board-style investments to cater only for oligarchs and the most wealthy,” councillor Richard Beddoe, Westminster’s chairman of planning, said.

He wrote in the city plan: “As we set out to create our city of the future, there is one question that should be at the forefront of our minds in every development we undertake: Will this be an asset to people’s lives?”.

The proposals are subject to six weeks’ consultation. The ban would not apply to homes that had been split up into flats and were being converted back into a single family house.

Westminster has already introduced tight restrictions on homeowners digging large basements to create so-called “iceberg homes” with several underground storeys used for gyms, cinemas, swimming pools and car garages. …”

https://www.theguardian.com/business/2018/nov/13/westminster-council-to-ban-super-size-new-homes?CMP=Share_iOSApp_Other

“Universal Credit Is Fuelling A Rise In Unpaid Council Rent, BBC Panorama Reveals”

“Council leaders have warned Universal Credit could halt house-building because of a surge in unpaid rent caused by the flagship benefits reform.

An investigation by BBC Panorama found that council tenants on Universal Credit owe on average £663 in rent, two-and-a-half times more than the £262 owed by those still on housing benefit.

The programme reveals that in Flintshire in North Wales, one of the first areas in the UK to receive the new system, the amount of rent owed to the council by people on Universal Credit is £1,424 in average – or six times the amount owed by those on the existing system.

The local authority says evictions in the county are up by 55% compared to the same time last year, and it has spent an extra £270,000 on advice staff to cope with the increasing numbers of people needing help.

The figures were based on Freedom of Information responses from around 130 councils that manage social housing. …”

https://www.huffingtonpost.co.uk/entry/universal-credit-rent_uk_5be89c53e4b0e84388993c8d

Persimmon in the soup – again – in Exeter

“New home owners having spoken of fearing for their lives after properties in their housing development were found to be missing vital fire barriers in its cavity walls.

The revelation was made following a ‘ferocious’ blaze which broke out at Greenacres, described as a ‘prestigious development’ in Exeter.

Paul Frost, who lives in Trafalgar Road near to where the fire broke out, says he was the first to make the discovery when he used his building knowledge to inspect his own property.

Last week Persimmon Homes denied there was a problem with some of its properties.

But the housebuilder had already penned a letter to residents asking them to inspect their homes due to roof space cavity problems in another property.

A report, by the National House Building Council (NHBC), and shared with Devon Live, states the missing barriers at Mr Frost’s property posed an ‘imminent risk to health and safety’, and there was a breach of building regulations.

The developer has not confirmed how many properties so far have been identified as failing to meet required safety standards, despite direct questioning.

However, an indication of the extent of the problem has been provided by Paul, who has asked all residents to let him know the outcome of their inspections.

His says his findings so far have shown out of 18 homes he knows to have been inspected, 70 per cent are missing fire resistant cavity barriers.

He said: “It is horrific to imagine the impact on a family, never mind potential loss of life.

“Not only is the builder responsible for this horrific situation of missing fire barriers in so many homes, but the site managers, construction heads and managing director of, in this case Persimmon Homes South West, are also culpable because they are clearly not checking their homes properly as they are being built, or before they are sold.

“However, and perhaps in some ways even more serious, is the fact these homes have been signed off by a qualified building inspector, in this case employed by the NHBC, to be fully compliable with existing building regulations at the time of signing off. This just shocks and offends me and I feel a moral obligation to ensure all new homes are built and signed off to better standards than they are currently.”

The problem has emerged following major fire in Trafalgar Road, off Admiral Way and Topsham Road, back in April, which spread into the roof spaces of two of the adjoining properties.

Firefighters had to dig through cavity walls between properties to ensure the fire was fully out.

Last Wednesday, October 31, Persimmon Homes denied there is a problem with the properties which were passed by the National House Building Council (NHBC).

A spokesperson for Persimmon Homes South West said at the time: “There was a fire in a property on Trafalgar Road several months ago, but official reports from the landlord of the property indicate that it was caused by a cigarette being discarded recklessly.

“Under these circumstances the structure of the house cannot be implicated and it would be wrong to do so.”

However, on the same day Persimmon gave the response it is believed it sent a letter to 88 residents informing them it was carrying out voluntary checks within the Greenacres development due to safety concerns.

The letter said: “We are conducting a check of roof spaces on your development to make sure the roof space cavity has been installed correctly following a recent inspection within the development.

“We are offering this precautionary measure to you. Should you wish to take up that offer please contact us and we shall arrange for an inspection to be made, and any necessary remedial works to be carried out.”

This week Persimmon has accepted there is an ‘error’ with some of its properties.

A spokesperson for Persimmon Homes South West said: “Following engagement with a customer who had raised a complaint, an issue with the cavity closure installation was discovered. We rectified this within 24 hours of being notified.

“As a responsible construction firm we are taking immediate action to ensure this error has not been replicated and have therefore been contacting our customers directly. We are checking all properties within the phase of the development as a precaution.

“We have in place a checking process where both the contractor and site manager sign off the cavity closer check. Periodic checks are made by the contracts manager.

“These checks are in addition to the NHBC building inspector sign off of the superstructure.”

Persimmon did not answer a number of key questions posed by Devon Live including:

When was the initial compliant lodged?
How many homes are being inspected in the Greenacres development?
How many have been inspected so far, and of those, how many have failed for missing fire barriers?
Who assessed and passed the properties as compliant which have now since failed?
Will all Persimmon homes now be inspected?

Trafalgar Road resident Mr Frost, who has more than 30 years experience in the building industry, knew his home had failed, and the NHBC support the result.

He said: “I live at the opposite end of the road where the fire was which may have also had missing cavity inserts which by law it should have.

“It doesn’t matter if it’s missing inches or metres; your home, contents and, worst of all, lives, are more risk than they should ever be. This is probably one of the biggest building regulations you can have.

“I went to a semi-detached house at the far end of the development by Ikea. The house passed but the house attached to it failed!

“Their homes were built seven years ago where as mine is four years old showing it’s possibly an endemic problem in the building industry.

“If only one fails that is horrific. To imagine the impact on a family, never mind potential loss of life for anyone, but to find a current statistic like we have here is abhorrent.”

The alarming problem has prompted Mr Frost to launch a national campaign calling for Parliament to consider a new direction to encourage developers to build better quality homes.

He said: “I want to try to make this a national campaign of some of sorts, to at least help to reduce the possibility of loss of life.

“The way forward is to encourage better quality construction and certainly the installation of heat sensors in roof voids, as a minimum outcome of this horrific situation of risking peoples lives for what can only be seen as better profits.”

Like many other Persimmon Homes owners, it is not the first problem Mr Frost has experienced with his property.

He says he has had about 130 ‘snagging issues’ including faulty brickwork which will mean him having to move out while it is repaired.

Mr Frost, who set up a company called Snagaroo snagging inspections, due to all the problems he and his neighbours have had, said: “The number of issues we have had with our home has reached a point where Persimmon have agreed to rebuild our external facades, as well as conduct over £20,000 of work internally.

“That was before we reveal any issues with the timber frame or floor levels.

“And it’s not all over yet; We are forever seeing something else. The problem is quality control. Once they get that right there won’t be a problem.

“In fairness to Persimmon, as soon as my house was found to be missing fire resistant cavity barriers it was sorted out straight away, but it should have been built properly in the first place.”

Fellow Trafalgar Road resident Lydia Burge has also encountered many problems with her new build.

It was five years ago this month she moved in to the road and after having had 120 issues with the property she says she is still experiencing problems.

Her home is one of those which has found to have had the correct the fire barriers so passed the inspection.

She said: “I am afraid that myself and probably all my neighbours have never been happy with the standard of build and the response to problems were always a problem when we were within the guarantee period. I have yet to come across anyone who has purchased a Persimmon house that has been happy.”

An NHBC spokesperson said: “We are sorry to hear that these homeowners are experiencing problems with their new homes, which are covered by NHBC’s 10-year Buildmark warranty and insurance policy.”

https://www.devonlive.com/news/devon-news/alarming-imminent-risk-health-safety-2194451

Windfalls for greedy property developers

An article which needs to be read in full.

“… Osborne played his get-out-of-jail card: he chucked money at the British housing market. He launched the help-to-buy scheme, billed as aid to first-time buyers, giving them government equity loans of up to 20% of the purchase price of any new-build. The likely consequences were obvious from the outset. Osborne’s plan would chuck a canister of petrol on to house prices. The chancellor who slashed billions from social security for the working poor had no problem whatsoever with handing billions to property developers.

It was cynical, it was costly; it was Osborne all over. And for the property sector – the mortgage lenders, the estate agents and most of all the housebuilders – it was what industry expert Henry Pryor calls “crack cocaine”. It kept the market bubbling over, underpinned prices and brought in massive profits. And like the addicts of cliche, the property industry kept demanding more. Housebuilders have repeatedly lobbied for the scheme to be extended and expanded. Again and again, Osborne and Hammond have obliged. What began as a three-year programme worth £3.5bn will now run until 2023 and suck in more than £29bn of taxpayer money.

In Austerity Britain, this may be the single biggest giveaway to one small group of businesspeople – and it gets barely any attention. The scheme may have helped some first-time buyers on to the ladder, but by inflating prices, it has kept many others off. Add to it quantitative easing and the erosion of stamp duty, and the British state has looked after housebuilders like no other. …”

https://www.theguardian.com/commentisfree/2018/nov/09/housebuilders-tax-jeff-fairburn-bonus-windfalls