“Builders criticised for lobbying against accessible homes”

“Private housebuilders have been accused of “appalling self-interest” over their lobbying against building more accessible homes for disabled residents.

The Home Builders Federation (HBF) has been objecting to councils across England that wish to fix new targets to increase the number of homes with room for wheelchair users and which could be adaptable.

It has made submissions to at least 17 authorities, from Liverpool to Sevenoaks, arguing that new local planning policies seeking more accessible housing could make it unprofitable to build new homes. The submissions also question whether predictions of an ageing population mean an increased demand for adaptable and accessible housing would be certain.

Charities including Age UK, the Centre for Ageing Better and Disability Rights UK said on Tuesday they were alarmed at its objections to planning policy proposals to make greater disability access mandatory. It said only 7% of homes were classed as accessible and that building to a higher accessibility standard would cost about £500 more.

The HBF represents highly profitable housing firms including Persimmon, which recorded gross profits of £565m in the first six months of this year, during which it built 8,000 new homes – a margin per home of about £70,000.

“Without homes that enable us to live safely and independently for as long as possible, we will see increased and unsustainable pressure on our health and social care services and much-reduced quality of life for people in older age,” the charities told the HBF in an open letter.

Unless it was enshrined in local planning policy, it remains optional under national regulations to incorporate features that make new homes suitable for people with reduced mobility and some wheelchair users. It also remains voluntary to make them fully wheelchair accessible, unless town halls make it mandatory.

In one submission to Broxbourne council in Hertfordshire, the HBF said: “The key issue we have with … policies that add financial burdens on the development industry in this local plan is that they have not been effectively tested.”

Objections have been raised by the HBF where it believes councils have not taken into account the financial impact of the proposals alongside other demands such as the provision of affordable housing, and said that if a council wanted to prioritise disabled access, it should reduce its demands for affordable homes.

An HBF spokesman said: “New homes are already more accessible than those built previously, but not all homebuyers want a home that has been adapted for accessible use.

“If government deemed that all homes should be built to higher accessibility standards it could make it a requirement. Currently levels are set by the planning system, which specifically requires local authorities to provide evidence to support their demands.”

“Their attitude is appalling self-interest,” said Cllr Pam Thomas, a wheelchair user and cabinet member for inclusive and accessible city at Liverpool city council, which has faced objections from the HBF to its plan to make 10% of new homes wheelchair accessible. “If they looked at this properly they would realise there wasn’t a problem with the cost or [extending] the footprint. They need to have a social conscience here.”

https://www.theguardian.com/society/2018/nov/28/builders-criticised-for-lobbying-against-accessible-homes

“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

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

Wain Homes, Redrow, Persimmon – more local horror stories

One home selling for £50,000 less than bought for after 10 months to escape it (Wain Homes, South Molton); one family moved out for 3 weeks at their own expense as the house was unliveable in (Redrow, Exeter) and one home allegedly still has 120 problems 5 years after moving in (Persimmon, Exeter).

https://www.devonlive.com/news/new-build-horror-home-stories-2177182

Persimmon: yet another horror story

(The photographs accompanying this article are truly shocking)

“A STRESSED-out dad is suing over his “shoddy” brand new home which has brick walls looking like a wavy patchwork quilt.

When Darren Harris collected the keys to his freshly constructed £210,000 four-bedroom house, he was shocked to find more than 80 defects.

The 53-year-old was also stunned to learn the bumpy brickwork on his house wall had become a laughing stock of the neighbourhood.

The civil engineer has shared pictures of the poor workmanship and plans to take legal action against Persimmon Homes, which built the house on the Martello Park estate in Pembroke, West Wales.

Harris said: “We got the keys to our house and I drove down to the property with my wife.

“The neighbours came over and asked me if I had seen the brickwork on the back of the house.

“They said to me ‘We have been having a bit of a laugh and a giggle’. It looks unstable, the brickwork is wavy and looks unsafe.”

He and his wife, an area manager for Greggs bakery, then decided to take a look inside their property, but struggled to open the door.

The engineer said: “We put the key in but the door wouldn’t budge. We couldn’t get in.

“I thought there must be a problem and went back to the site office. A Persimmon agent came back with me and in the end he had to shoulder-barge the door to get it open.”

They discovered later that the door frame was fitted incorrectly.

As time went on the list of problems expanded with Harris finding that “drain covers weren’t fitted properly, paving was laid on top of rubble, the guttering doesn’t reach the end of the house and water cascades down the sides when it rains.

“The doors inside all had to be rehung and I’ve done so much work myself just to get it liveable.

“Everything is appallingly built – the workmanship is just shoddy. The problems are unbelievable.”

Mr Harris bought the house before it was built, after seeing a show home on the site.

He said: “It looked like a nice spot, with views of Pembroke Castle. We put a deposit down in February and planned to rent it out.

“But ever since we got the keys, the reality has been far from perfect.

“It’s caused my wife and I no end of worry and stress. She has been in tears. If my marriage wasn’t so strong this could have finished us.”

Now Harris, from Sutton Coldfield in the Midlands, says he has no option but to take Persimmon Homes to court.

He said: “I have been on to head office. I have been brave enough to take them on and take them to the small claims court.

“The rectification work they attempted was not acceptable. I have given them the opportunity to put it right.

“I have had to put off getting my tenants in, which has resulted in losses of £1,600.

“We have been forced to get on with the retrospective work ourselves and it has cost us thousands. That’s the only way I could get the house finished and ready for our tenants.”

A spokesman for Persimmon Homes West Wales said: “We are aware of Mr Harris’s concerns and we are working to reach a satisfactory conclusion.

“We have many happy customers across South Wales and we take customer service seriously.”

In October, Persimmon’s boss Jeff Fairburn walked off in the middle of a BBC interview after he was grilled about his whopping £75million bonus.

When questioned over any regrets about last year’s payout – cut from £100million after a public outcry – Fairburn replied: “I’d rather not talk about that”.

The payout is believed to be the largest by a listed UK firm, the BBC said.”

https://www.thesun.co.uk/news/7647536/brand-new-house-wales-wonky-brickwork-sinking-garden/

Developers get another easy ride budget

“In a boost for U.K. homebuilders, Chancellor of the Exchequer Philip Hammond will introduce a new Help to Buy program that will run from 2021 until 2023.

The scheme extends the original program, which has drawn criticism for boosting prices. It will be limited to first-time buyers and regional price caps will be introduced, limiting the value of the home to 1.5 times the price for an average debut home purchaser.

The government gives home buyers an interest-free loan of 20 percent to 40 percent of the purchase price under the program. The announcement was made alongside the publication of an independent, government-commissioned review of the original program. Some had feared the review might result in the policy being scrapped, but it confirmed the policy has boosted house building.

Persimmon plc, the U.K.’s largest home builder, has gained about 107 percent since the introduction of Help to Buy in April 2013. About 60 percent of the company’s home sales are through the Help to Buy program, according to research by analysts at Liberum. The policy, which has already been extended once, was due to expire in 2021.”

https://www.bloomberg.com/news/articles/2018-10-29/u-k-to-start-new-help-to-buy-program-for-first-time-buyers

EDDC hopes Persimmon and Crown Estates will pay them back for Axminster Relief Road!

Owl says: good luck with that!

“Councillors are being asked to borrow nearly £7m to ensure the long-awaiting Axminster relief road can be delivered.

The £16.7m road, which hopes to finally end the bottleneck of traffic travelling through the town centre, would be built to the east of the town near land allocated in the Local Plan for 650 homes, eight hectares of employment land, and a primary school.

£10m from the government’s Housing Infrastructure Fund will help deliver the road, with the remainder of the cost covered by developers.

But East Devon District Council’s Cabinet is being recommended to borrow and forward fund the remaining £6.7m, and claw the funds back from developers at a later date, to ensure the road can be built in one swoop and not in stages, as Persimmon Homes control the northern and southern parts of the site and would provide the two ends of the relief road, while the Crown Estate control land in the middle.

A draft masterplan which will provide a template for the development of the site is expected to come before the Strategic Planning Committee by the end of 2018.

The report of Ed Freeman, Service Lead for Planning Strategy and Development Management, to next Wednesday’s cabinet meeting says: “The relief road is vital to the future growth of the town given the impact that HGV’s and other traffic passing through the town has on congestion, air quality, the attractiveness of the town centre and the damage that has been caused to historic buildings as large vehicles try and navigate its narrow streets. The relief road has the potential to divert 30 per cent of all traffic which travels east after passing through the town centre.”

Mr Freeman is recommending that the Council deliver the road in its entirety from the start of this project using the £10m HIF funding they have successfully bid for and borrowing the shortfall.

He added: “It is considered that the only realistic and viable means of delivering the relief road and doing it in good time to deliver the benefits for the community of Axminster is to procure and deliver the entire relief road borrowing the additional funds from the public loans and works board with repayment secured from the developers.

…. Questions though have been raised about whether the proposed north/south bypass that runs to the east of the town is the best option for Axminster.

At a recent town forum event concerning the relief road, residents said that a western route would be preferable as it would eliminate the bottleneck at the Weycroft Bridge, which the current proposed eastern route did not.

However, reporting back at a town council meeting, Cllr Ian Hall, East Devon District Council’s ward member for Axminster Rural and County Councillor for Axminster, said that the £10 million Housing Infrastructure Funding was not transferable to another route in Axminster.”

https://www.devonlive.com/news/devon-news/7m-borrowed-council-ensure-axminster-2147861

“Furious families are forced to EVACUATE their 11-year-old homes while developer Persimmon pays its chief executive £47m”

“Families forced to evacuate their homes because they could collapse have accused one of the country’s biggest builders of abandoning them while it paid executives millions of pounds in bonuses.

Residents of Philmont Court, a four-storey block of flats built in Coventry just 11 years ago, said they felt betrayed by developer Persimmon after more than a decade of problems with their properties.

They have been forced into temporary accommodation while repair work takes place after experts warned extreme winds could cause the building to partially collapse.

The alarming problem was only discovered when builders were called in to fix defects with insulation throughout the 48 apartments, which residents say have caused widespread damp and mould. One resident claimed the conditions have caused her seven-year-old son to develop breathing problems.

There were also complaints about guttering, noise, the plumbing and electrics – but despite repeated pleas for help over ten years, Persimmon has refused to deal directly with the residents.

The situation is a further embarrassment for the company after it paid its top three executives £104 million last year. Jeff Fairburn, the chief executive, was paid £47 million alone.

He last week flounced out of a television interview when asked about the payout. The 52-year-old is under pressure to give up his massive bonuses and for the company to provide compensation to the residents in Tile Hill, Coventry.

Geoffrey Robinson, MP for Coventry North West, said: ‘For Jeff Fairburn and Persimmon to treat these residents in this way, many who are first-time buyers, is utterly scandalous. If he had any compassion, he would compensate my constituents.’

Hayley MacSkimming-Barnett said a bedroom used by her children Lydia, ten, and Cameron, eight, had been severely affected by mould. The 34-year-old interior designer said: ‘There was mould growing up the bedroom walls, in the wardrobes, under the children’s mattresses and on their teddy bears. But every time we raised it we were told there was nothing wrong with the building.

‘My son has developed chest problems and during every winter we have had to take him to hospital because his airway has closed up.

‘Persimmon built these homes and it should accept responsibility. The bosses wouldn’t live somewhere like that – and I’m sure their children don’t have to sleep on mouldy mattresses.’

Philmont Court was built in 2007 by Westbury, a company owned by Persimmon.

But soon after moving in, residents began to complain of condensation and mould. Landlord Whitefriars, which bought the building, told them they were not airing the flats properly. In 2016 inspections were finally carried out and problems with insulation around windows were discovered.

Under a warranty which applies to most new homes, industry body the National House Building Council (NHBC) was called in to fix the problems. But builders discovered even more serious structural problems and residents were moved into temporary accommodation in May this year and repair work began in August.

Resident Hannah Perch said the ordeal had ruined the experience of buying her first home.

The 27-year-old teacher said: ‘The idea of the Persimmon executives getting paid these bonuses makes me livid.’ …”

http://flip.it/MGlqVn

“Delivery driver forced to axe business after Persimmon Homes ban him from parking on his own drive at new £190k home”

“The dad-of-one was given just 14 days to move the van from his property, because small print in the terms of his freehold said he couldn’t park ‘commercial vehicles’ outside his own home.

As he was planning to use the van for his delivery business, the jobsworth inspector said the vehicle was illicitly parked.

The order came just days after the 25-year-old handed in his notice to focus on his new start-up.

Reece, of Great Yarmouth, Norfolk, told The Sun Online: “It’s pathetic – they’re saying you can’t have this house unless you’re an accountant or something.

“They have no respect for people who work 70 hours a week to provide for their families unless it’s the right kind of job.

“I paid £192k for the freehold, why can’t I park a van on my drive? It’s elitist.

“None of my neighbors have complained – they think it’s ridiculous that I’m being forced to sell it. A lot of them have vans themselves.

“I grew my side business enough to go full-time, and even handed in my notice at work – then Persimmon wrecked all my plans.

“Thankfully I got my old job back, but it was still a bit sour. I haven’t done any deliveries for ages, and I’ve had to go back to square one.

“I’m just trying to sell the house so I can move on with my life.”

Reece was eventually forced to sell his van – and temporarily shelve his dreams of becoming his own boss.

He insists he wasn’t told about the bonkers contract clause – and says even his solicitor failed to pick up on it.

He blasted: “There’s no way I would have bought the place had I known about it. Setting up a business has been a dream of mine for years.

“When we first moved in there were about 50 things wrong with the house. The build quality was shocking, I’ve had to spend £2k on really basic renovations just so I can sell it.

“The carpet is coming up everywhere, and the paint comes off the walls if it gets slightly damp.

“The door frames are the wrong size and the skirting boards are all wrong. It’s been a nightmare, I’m never buying a house from them again.”

It comes after Persimmon boss Jeff Fairburn sparked fury by walking out of an interview when pressed on his staggering £75m bonus.

When asked if he had any regrets about the furore, he sneered: “I’d rather not talk about that, it’s been well covered actually.”

He then stormed off, adding: “I think that’s really unfortunate actually that you’ve done that.”

Last year we revealed a couple in Newquay, Cornwall, plastered their windows with posters warning potential buyers to stay away from their Persimmon-built estate.”

https://www.thesun.co.uk/news/7535824/delivery-driver-forced-close-business-after-persimmon-homes-parking-ban/

Developers (“Cranbrook Limited”) still seem to hold all the cards in the town

From Town Council website:

“For distribution – question: What is “Cranbrook Limited” referred to in the last line?

Town Council site:

“The Town Council has been advising previously that we have been chasing the Consortium to release householders from the rent charge deed and yesterday we received the following statement:

“The development partners, Persimmon Homes, Taylor Wimpey and Hallam are continuing to work with their agents to conclude the Estate Rent Charge audit process and Deed of Release on final payment of balances due from each household. Please bear with us as we complete these tasks. We will continue to liaise with the Town Council on this and update you further in due course.”

Whilst we are doing all we can to help progress this matter, the Town Council is not responsible for the development and distribution of the documentation which removes the rent charge deed from individual households – it is and remains the responsibility of Cranbrook Limited.

The Town Council will continue chasing this matter on a regular basis.”

“Help to buy” – or help to rip off?

“Britain’s biggest housebuilders have doubled the average profits they make from each home since the Help to Buy scheme was launched.

Analysis by The Times reveals that the top five builders in Britain are making an average profit of £57,000 on each house they sell, compared with a mean average of about £29,000 in 2007.

Barratt, the biggest builder, is making almost double the amount of profit compared with ten years ago but is building only 411 more homes. Another builder, Bellway, is making more than £58,000 profit a house compared with a little more than £30,000 in 2007 but is building 2,000 fewer homes.

At the time of its launch in 2013, it was hoped the scheme would stimulate house-building. When it was extended in 2014, Mark Clare, then chief executive of Barratt, said: “Britain urgently needs more homes and by setting out a longer-term framework for Help to Buy this announcement will enable the industry to deliver just that.” Yet figures show that the total number of new houses delivered has barely changed since the introduction of the scheme.

The profits last year have been compared with 2007 because this was the last full year that housebuilders were at their peak before the financial crash. Annual pre-tax profits were divided by the number of homes built in each year to reach a “profit per house” figure.

Britain is facing its worst housing crisis in generations, with ownership at a 30-year low and a record 1.8 million families with children renting privately.

Housebuilders were quick to point out that underlying growth will have boosted profits, with house prices having risen by 23 per cent across the UK since 2007. They also noted that they were paying huge amounts back in debt each year at high interest rates before the financial crash, compared with today, when they have millions in cash at the end of each year.

However, analysts believe that a large driver of profits is the government’s Help to Buy scheme, which supports about 40 per cent of housebuilders’ sales. Robin Hardy, an analyst at Shore Capital, believes that housebuilders would be making £22,000 less in profit on each house built for first-time buyers if Help to Buy was not in place. “We reckon that homes sold through Help to Buy are 53 per cent higher than in June 2013, whereas house price figures from Land Registry or Nationwide suggest that across all first homes it’s more like 19 per cent,” he said. “That suggests that someone is gaming the system.”

Neal Hudson, a housing expert at Resi Analysts, said that shareholders had become “the main priority” for housebuilders since the financial crash. “The over-arching factor has been big pressure from the City,” he said. “The priority for them is profit margin not the number of homes built.”

Persimmon, Britain’s second-largest housebuilder, made an average profit of just over £60,000 on each house it built in 2017. In 2007 the figure was £36,787. It built only 138 more homes.

The housebuilder made pre-tax profits of £966 million in 2017 and has a war chest in net cash of £1.3 billion. Jeff Fairburn, its chief executive, was paid £75 million in a bonus scheme last year, which was more than the highest paid banking executives on Wall Street.

Lord Best, vice-chairman of the all-party parliamentary group on housing, said: “These bumper profits come at a time of growing recognition of the catalogue of failings of major housebuilders: poor design, miserable space standards, defective workmanship, delaying development to keep prices high . . . and exploiting a loophole in the planning process to renege on their obligations to include affordable homes in their developments.”

However, developers said the type of product they build has changed, with far fewer flats and a much tighter control over what type of land they buy.

A Home Builders Federation spokesman said: “House building is cyclical. After the financial downturn companies posted big losses and had to make huge writedowns on the value of their land. Many companies disappeared. Since 2013 output has increased by 74 per cent, an increase that as well as providing desperately needed homes has given the economy a huge boost.”

Source: The Times (pay wall)

“Persimmon profits rise 13% after help-to-buy boost”

Owl says; Summary – take care of your donors and they will take care of you.

“The housebuilder Persimmon has reported that its profits rose by 13% in the first half of the year, boosted by the government’s help-to-buy scheme and competitive mortgage deals.

Pretax profits jumped to £516m from £457m in the six months to 30 June, and Persimmon said it expected further growth in the second half of the year, bucking the wider trend of a slowing UK housing market.

“We have continued to experience good levels of customer interest in our housing development sites as we trade through the quieter summer season,” said the Persimmon chief executive, Jeff Fairburn.

“Customers are continuing to benefit from a competitive mortgage market and confidence remains resilient based on healthy employment trends and low interest rates.”

Britiain’s second biggest housebuilder angered shareholders earlier this year after handing Fairburn a £75m bonus. A report published last week by the High Pay Centre revealed Fairburn was the highest paid FTSE 100 boss in 2017, with a £47.1m package.

Persimmon sold 8,072 new homes in the first half of the year, up 4%. The average selling price increased by 1%, to £215,813.

The housebuilder has been one of the biggest beneficiaries of the government’s help-to-buy programme, which has lifted sales and supported house prices across the UK. …”

https://www.theguardian.com/business/2018/aug/21/persimmon-profits-rise-housing-market-help-to-buy

“Persimmon homeowners in Newquay warn would-be buyers with signs”

“A couple living on a new housing estate have put up signs in their windows urging potential buyers not to buy the properties.

Lucy and Guy Sousse moved into the estate in Newquay, Cornwall, a year ago and say Persimmon Homes promised to complete snagging work by last October.
But they say they are still waiting for 90 different faults to be finished.
Persimmon Homes said it was committed to fixing the problems but had not been able to arrange a time for the work. …”

https://www.bbc.co.uk/news/uk-england-cornwall-44879858

As Owl has reported, obscene bonuses paid to directors and managers has added at least £40,000 to the cost of every Persimmon home:

https://eastdevonwatch.org/2017/12/20/obscene-persimmon-bonuses-add-nearly-41000-to-cost-of-each-house/

Persimmon in another rip-off scandal

See what Guardian Money had to say in answer to this query – truly shocking:

“I am about to complete on the purchase of a house on a new Charles Church development in Northiam, East Sussex.

My solicitor has identified an issue which negatively affects the value of seven of the properties. Because a certain form was never submitted to the Land Registry by the developer, each one has an “overage” on its deeds in favour of Charles Church.

This grants the company a proportion of any profit if the property is sold on and will have a huge impact on the resale value. The owners of properties already sold are none the wiser as no other conveyancer had picked up on it.

Charles Church’s solicitor has agreed that, with this overage in place, there is no way I could purchase the property. Nevertheless, Charles Church has given me two days to exchange and complete, or else it will remarket the property.”

https://www.theguardian.com/money/2018/jul/12/new-build-clawback-overage-persimmon-complete-survey

“More than 100 managers join Persimmon’s bonus gravy train with a £300m windfall (and, yes, most of them are men)”

Not saying this is the same, but don’t a lot of companies take out money just before they crash …BHS, Carillion …

And is this a proper time?

https://eastdevonwatch.org/2018/06/29/new-facebook-page-avoidpersimmonhomes/

“A group of 130 bosses at housebuilder Persimmon are set to share a £300 million bonus bonanza in the biggest windfall in the history of the industry.

The unprecedented payout is part of a notorious bonus scheme that is delivering £75 million to the chief executive Jeff Fairburn.

Tomorrow’s payday will hand 130 senior managers an average of £2.3 million each. The handout is the second and largest part of an incentive scheme, that will take the total for managers below the board level to £500 million.

They previously shared in a £200 million payout over Christmas which was overshadowed by the storm over Fairburn’s £50 million. …”

http://www.dailymail.co.uk/money/news/article-5904223/More-100-managers-join-Persimmons-bonus-gravy-train-300m-windfall.html

“MP back plan for ombudsman to resolve new homes disputes”

“The government is under pressure to set up an independent ombudsman with the power to order housebuilders to pay out up to £50,000 or even reverse a sale, following reports of new-home buyers lumbered with defective properties.

A group of MPs and peers has called on the government to make it mandatory for housebuilders to belong to the proposed scheme, which would be free for consumers and offer a quick resolution to disputes. The scheme would be funded by a levy on housebuilders, with larger ones such as Berkeley Group, Persimmon, Barratt, Galliford Try, Redrow and Bovis Homes, paying more than small and medium-sized firms.

A report, Better Redress for Home Buyers, by the all-party parliamentary group for excellence in the built environment, highlights the confusing landscape buyers face when trying to resolve building defects, not helped by a plethora of warranties, housebuilding codes and complaints procedures.

It says the proposed ombudsman should be able to order payouts of up to £50,000 so buyers are not left out of pocket. Disputes over larger sums might have to be settled in court, but the report adds: “In certain extreme situations the new homes ombudsman should be able to reverse the sale.”

People have no idea that when they buy a new home directly from the developer, they have no access to redress.

The recommendations come after a scandal over the poor quality of new homes built by Bovis, while other housebuilders have also faced similar complaints.

A recent survey by the Home Builders Federation and the main warranty provider, NHBC, showed that 98% of new-home buyers reported snags or bigger defects to their housebuilder after moving in.

The parliamentarians have proposed a snagging app that would enable buyers to photograph defects and send them to the builder, monitor the progress of complaints and go to the ombudsman if needed.

Dominic Raab, the housing minister, said this week that the “vice-like grip” of the big developers must be broken to boost the building of affordable homes.

Lord Best, vice-chair of the all-party group, says: “Buying a new home is stressful enough, but buying a defective one, as we heard from witnesses, can take a toll on people’s wellbeing as they wrestle with a Kafkaesque system seemingly designed to be unhelpful.”

The proposed scheme would be modelled on the property ombudsman, to which all estate agents must belong. If they are struck off, they can no longer trade.

Katrine Sporle, the property ombudsman, says: “New homes should be covered by an ombudsman. People have no idea that when they buy a new home directly from the developer, they have no access to redress.”

The proposed scheme would cover the first two years following a house purchase when housebuilders are liable for defects, while subsequent problems would be down to the warranty providers.

The report says: “Affected homebuyers are exasperated not so much by the existence of defects but by a builder’s failure or even refusal to put them right. Submissions we received described how buying a new home had been ‘the worst decision of their life’; how it was like ‘going through hell’ as the complaint passed between housebuilders and warranty providers; and how fighting for redress was taking a toll on their health.”

The proposals have been presented to the ministry of housing, communities and local government as part of its consultation on a single housing ombudsman.”

http://flip.it/716e6t

New Facebook page: AvoidPersimmonHomes

A new Facebook page called “AvoidPersimmonHomes” has been overwhelmed with stories and pictures of homes which occupants are finding impossible to live in. At the time of writing it has 269 members.

https://www.facebook.com/groups/316825475386299/about/

This follows on from a similar page for Bovis homes which has 3,113 members
https://www.facebook.com/groups/BovisVictimsGroup/

“Persimmon pay panel chief unable to tell MPs firm’s average pay”

“Persimmon’s executive pay row was reignited on Wednesday after the head of the housebuilder’s remuneration committee said she did not know how much the average worker was paid by the firm.

MPs on the business, energy and industrial strategy (BEIS) committee were stunned by the admission from Marion Sears, who was giving evidence after Persimmon angered shareholders earlier in the year by handing its chief executive Jeff Fairburn a £75m bonus.

“The average … I don’t have that figure to my finger tips,” Sears told MPs, when asked by the committee chair, Rachel Reeves, what average pay was.

“You’re chair of the remuneration committee at Persimmon aren’t you? And you don’t know what average pay is, as chair of the remuneration committee?” asked an incredulous Reeves.

After the meeting had concluded, the Labour MP tweeted that Sears’ lack of knowledge was a disgrace.

She added in a statement: “Executive pay at Persimmon is a tale of corporate greed and incompetent pay management, financed on the back of a tax-payer funded housing scheme [help to buy].

“Persimmon paid out huge bonuses to the men at the top of the firm and yet this morning we have heard that Persimmon are unable to tell us how much average workers at the company are paid.”

A spokesman for the firm later confirmed the average salary at the firm is £35,600.

During the bruising session, Sears also appeared confused about the sum Fairburn received last year, at first answering “£675,000”. Prompted by Reeves to give the total pay figure, she said it was “about £45m”. The total figure shown in the 2017 annual report and accounts was £47.1m.

When asked by Reeves whether or not Persimmon was a living wage employer, Sears said yes, but then went on to clarify that the FTSE 100 firm was not accredited by the living wage foundation. …”

https://www.theguardian.com/business/2018/jun/06/persimmon-pay-panel-chief-unable-to-tell-mps-firms-average-pay

Taylor Wimpey bonus “slashed” from £1.08 million to £827,757 after leasehold scandal

“Housebuilder Taylor Wimpey has slashed 23pc from its directors’ bonuses in response to the scandal over punitive leasehold terms.

The company’s annual report shows that chief executive Pete Redfern received £827,757 through Taylor Wimpey’s executive incentive scheme (EIS), rather than almost £1.08m as originally planned.

Ryan Mangold, finance director, and James Jordan, legal director and company secretary, also received a 23pc cut in their bonuses for 2017.

Taylor Wimpey has come under fire for selling homes with leasehold terms which mean the ground rent payable by the homeowners doubles every 10 years. In some cases, this has made the houses unsellable.

The homebuilder said the scaling back of bonuses was a “meaningful and proportionate approach to take”, even though the leasehold issue had not directly inflated the bonuses last year.

Meanwhile, housebuilder Persimmon has confirmed that chief executive Jeff Fairburn will receive a total pay packet of £47m this year thanks to a generous long term incentive plan agreed in 2012 which came to maturity last year. His total bonus award was due to be around £100m over two years, although it was later reduced to £75m.

Mr Fairburn has said he will give some of the money to charity.”

https://www.telegraph.co.uk/business/2018/03/19/taylor-wimpey-slashes-bonuses-leasehold-scandal/