Showing posts with label Transactions Buyers. Show all posts
Showing posts with label Transactions Buyers. Show all posts

Wednesday, 24 May 2017

Social housing is good. But let’s make it beautiful too

By Zoe Williams
The big parties speak only of practicalities. Perhaps they should try focusing on aesthetics for a change


Central Hill in Crystal Palace, London, one of the threatened estates by celebrated council architect Ted Hollamby. Photograph: Simon Elmer/Architects for Social Housing
Ostentatious parsimony was the phrase used by Kate Macintosh, the woman responsible for some of the most ambitious local authority housing of the 1960s and 70s, to describe the spending environment for the social architect. Housing ministers would speak with pride of stripping out unnecessary extravagances, such as balconies and windows.


The philosophy went beyond thrift. In social housing, anything above the bare minimum was lavish, and anything lavish was an insult to the public purse. In the 90s, as PFI contracts took hold, the ostentatious parsimony of the state met the carelessness of the investor. How much does a landlord care about liveability – about grace, light, views and carbon emissions?

The result was not so much universal declining standards – architects, unavoidably, still have talent, energy and ambition – but the dishevelment of public housing. We lost all confidence in our collective ability to create a proud and, in the old-fashioned sense, awesome built environment.

In their manifesto last week, the Tories promised to build a million homes by the end of 2020, 500,000 more by the end of 2022. This is semantically more than Ed Miliband’s promise at the last general election of “up to” a million by 2020, and atmospherically equal to Jeremy Corbyn’s “over a million new homes” by the end of the next parliament. There is almost no detail in Theresa May’s plans as to how the housing is funded, or who it would be for, except that 160,000 homes would be built by the government on its own land. The Tories are clear on what they are against: poor-quality homes, careless developers, high land costs and poor planning. And they raise an idea that they obviously consider meaningful, since it’s capitalised: new Council Housing Deals, to support “ambitious, pro-development local authorities”.

Yet there is no sense that any of those modern ills are within the government’s power to control – no sense of how to enforce better quality, how to make developers care, what to do about land costs, or what better planning looks like (for instance, would it be more centralised or more devolved?). What is an ambitious, pro-development local authority? One whose ambitions are to sell its land to developers for private homes? Or one that is developing its own land for the housing of its own residents? This is more than strategically ambiguous: it is completely opaque. Likewise, those 160,000 homes built by government - in private partnerships? Or are they going to insource construction? And who would those homes be for?

Labour is clearer: at least half its million homes would be built by councils or housing associations to be “genuinely affordable” (this is framed as a break from the current definition of affordability, 80% of local market rent). They’re also explicit on building carbon-neutral housing, and on minimum space requirements.

In short, everybody can see there is a problem. Very few people celebrate the housing solutions of the past: Margaret Thatcher’s council house selloff that delivered social housing into the hands of private landlords and left the government with a colossal housing benefit bill. Scarcely anyone, from any point on the political spectrum, favours a hands-off state approach (except Ukip, whose answer is to let developers build anywhere, on anything – except golf courses).

Yet there is a fundamental implausibility to all these promises: nobody really thinks they themselves will end up living in one of these million, or more than a million, homes. The only people who think they’re a possible candidate for social housing are those who are already on waiting lists, but the number who can’t afford private rent is far greater. Any housing that isn’t specifically ringfenced as social is assumed to end up in the hands of an investor.

The rhetorical fixation on “rabbit hutches” (everyone pledges not to build those) conjures a future in which developers develop faceless, high-density blocks, and a planner goes round with a ruler to check they’re suitable for dwellers larger than a rabbit. When parties promise a million homes, we imagine a million little boxes that we can’t afford, or won’t be for us.

Two years ago I started kicking about at an architectural practice called Studio Egret West. They wanted a book about their philosophy; I wanted to think about something other than politics, which – as improbable as it sounds now – was very boring just before the 2015 election: small, consumer policies from cantankerous men. The architects’ conversations were in fact intensely political: approaching housing aesthetically is just a different kind of politics.

They talked about how putting a million more houses in a country changes that country, and how that needn’t be for the worse. You can densify a city and make it greener, not greyer, with living walls, winter gardens, landscape planning that marries the botany to the building, parks in the sky, and ideas to restore to nature the space that the building appropriated, turning it seamlessly into a vision of sustainability and zero-carbon living. Equality came up as a function of design: how do you create a sense of community in a mixed-income development, except through shared space?

Neighbourliness cannot be handed down by diktat. They described how to meet the constraints of space with more imaginative ways of shaping and using it, and how housing should never be tucked away and separated from the industry and activity that is the pulse of its city. They talked about how to build upwards without devastating the skyline or oppressing the people on the ground.

They described how understanding the history and the narrative of the architecture that came before would imbue new buildings with a sense of modernity through continuity, instead of a jarring newness. They described a future city that could properly house its people without turning them into extras in Bladerunner.

And if you ever said, “this sounds expensive”, they said there is nothing more expensive than something ugly that has to be demolished. Concrete accounts for 5% of all human-generated CO2 emissions. As Macintosh says: “What is barely acceptable to one generation becomes an insult to the next. It is always good economics to provide the best and get it right first time.”

I didn’t write the book, in the end: they wrote it themselves. But I realised what’s missing from this conversation, why the promises never stick. It’s not the detail, the intricate plans on who will build what, who will pay, in what private-public permutation, and who will live in the homes. That’s missing too. But what is missing in the first instance is beauty.

https://www.theguardian.com/commentisfree/2017/may/22/social-housing-labour-tories-manifestos-homes

Friday, 19 May 2017

ARLA Propertymark backs holding deposits to stop ‘time-wasting tenants’

By Marc Shoffman

CREDIT: http://www.house-saver.co.uk/LiveEditor/images/moneyIntoHouse.jpg

A holding deposit capped at two weeks’ rent would help ease the burden on agents of tenants shopping around for multiple properties, ARLA Propertymark claims.

The trade body says there is a concern that the lettings fee ban will result in tenants shopping around with “impunity”, potentially wasting agency time and resources, but David Cox, chief executive of ARLA Propertymark has expressed hope that the Government will avoid this by allowing holding deposits.

He said: “The letting agent fees ban introduced in Scotland in 2012 resulted in tenants putting offers on multiple properties, creating significant additional work for both letting agents and landlords.

“The Department for Communities and Local Government has recognised this burden and therefore in the consultation they propose that agents will be allowed to take holding deposits from tenants which will be refunded to successful applicants and forfeited if tenants withdraw.

“This should overcome the issue of tenants putting down offers on multiple properties with impunity.


“The consultation asks what limits should be imposed on holding deposits and we believe they should be capped at two weeks as that figure will act a deterrent to such action by tenants while still being affordable.”

http://www.propertyindustryeye.com/arla-propertymark-backs-holding-deposits-to-stop-time-wasting-tenants/

Wednesday, 17 May 2017

Sales volumes hit four-year low, as regional transactions plummet by up to 26% in England

By Marc Shoffman

https://cdn3.iconfinder.com/data/icons/hexagon-office-business-set-1/141/54-512.png

Sales volumes declined across all regions of England at the start of the year, the latest official figures suggest.

Data for transactions in January – the latest month for which transactional data is available and revealed in the ONS and Land Registry House Price Index – show sales volumes down by up to a quarter across English regions.

The figures show that volumes fell by the most in London, down 26% year-on-year to 5,958, followed by the east of England and south-east which both saw 21% declines.

The north-east had the smallest drop, down just 8% on January 2016.

Overall, transactions fell 16.6% annually in January to 50,790 in England.

They were down 2% in Scotland to 6,239 and down 2.3% in Wales to 2,762.

Northern Ireland only provides quarterly data, but transactions were down 28.5% in the first three months of the year to 4,379.

Transactions across the UK were at 64,170 in January. This is down from 75,961 last year.

Of course this could all be clouded by last year’s Stamp Duty rush, but the numbers are also below a month before when sales volumes were at 82,351.

Even if you look further back to January 2015, the Land Registry recorded 71,703 transactions and 80,763 in January 2014.

You have to go back to January 2013 for when volumes were last lower for the month, at 52,550.

The data also shows that annual house price growth slowed to 4.1% in March, down from 5.6% in the year to February. Prices also fell 0.6% on a monthly basis to £215,848.

Commenting on the figures, Jonathan Hopper, managing director of Garrington Property Finders, said: “While the speed and severity of the fall in annual price growth – down to its lowest level for more than three years – will alarm some sellers, such national averages mask the wildly different conditions at opposite ends of the market.

“Properties in some regions continue to see double-digit price reductions, while at certain price points in the most in-demand areas, gazumping is back with a vengeance.

“Nevertheless the broader trend is undeniable. East Anglia’s gravity defying, double-digit rates of price inflation are a thing of the past and it has been forced to share its ‘fastest growing region’ crown with the east midlands.

“Even London finds itself in a position it is unaccustomed to – close to the bottom of the pile.

“The chronic shortage of supply is still propping up prices in many areas and mitigating the slowdown. But this snapshot of a slowing market – taken before the election announcement – confirms what many in the industry had feared. For the housing market, the snap election has come at just the wrong time – injecting an unwelcome dose of uncertainty into an already fragile market.


“Nevertheless the lull could be short-lived. If the election delivers a clear result that puts Brexit firmly back on track, the property market could receive a huge boost, freeing up more supply and with greater levels of clarity spurring discretionary buyers into action.”

http://www.propertyindustryeye.com/sales-volumes-hit-four-year-low-at-start-of-january-land-registry/

Tuesday, 11 April 2017

Accord Buy to Let’s ‘competitive mortgages’ now available to consumers

By Marc Da Silva



Accord Buy to Let, the intermediary-only lender, has announced that it is now accepting applications from borrowers classed as consumers: non-professional landlords who plan to let out a single property where they or their relatives have previously lived.

The lender, which is part of Yorkshire Building Society Group, has opted to make its full buy-to-let mortgage range available to consumer buy-to-let borrowers in response to growing demand for its products, and following the implementation of the European Mortgage Credit Directive.

Chris Maggs, Accord Buy To Let’s commercial manager, said: “We’re pleased to be lending in this market.

“Offering mortgages to landlords that are classified as consumers, in addition to those landlords that specifically invested in property for business purposes, means that we are providing brokers with a more comprehensive buy-to-let offering.

“It also offers homeowners who become ‘accidental landlords’ a wider choice of competitive mortgages to continue to maintain their property even after they or their family have stopped living there.


“Brokers can get in touch with our knowledgeable business development team, or refer to our handy online decision tree to determine whether a case falls under consumer buy-to-let lending.”

https://www.landlordtoday.co.uk/breaking-news/2017/4/accord-buy-to-lets-competitive-mortgages-are-now-available-to-consumers

Thursday, 9 March 2017

What is stamp duty tax and why do we pay it?the property transaction tax explained

By Prudence Ivey

Stamp duty must be paid by the buyer of any home in England that costs more than £125,000 - so what is this tax and where did it come from?

Credit: Alamy, Alamy Stock Photo
Stamp duty land tax (SDLT) is paid on any property purchase of more than £125,000.

History

Stamp duty was introduced in England in 1694 during the reign of William and Mary as a transaction tax to raise money for war against France and was raised on goods including hats, newspapers and patent medicines.

Although it has been adopted in many countries around the world, an attempt to enforce the levy in the then British colonies in America contributed to the outbreak of the American War of Independence under the slogan “no taxation without representation”.

How stamp duty has changed over the decades

Home buyers paid one per cent tax on properties costing more than £60,000 until 1997 when then-Chancellor Gordon Brown introduced bands above which higher payments would be charged – the upper band was set at £500,000.

In the intervening two decades, the lower and upper thresholds have been raised in response to rapidly rising house prices.


But the biggest shock to the London property market from SDLT – now payable only on land and property transactions – came in December 2014 when George Osborne abolished the slab structure, introducing progressive charges and increasing the levy on homes costing more than £937,000.


Stamp duty and the London property market

While the government says 98 per cent of home buyers now pay less stamp duty than in the past, soaring London house prices have seen receipts from the capital increase disproportionately to the rest of the country.

The new bands have been blamed for the slowdown of the property market in the multi-million pound price bracket.

In 2015/16, seven per cent of all UK residential SDLT receipts came from Kensington and Chelsea, where the average payment was £135,000 and 30 per cent of all revenues came from the 10 highest paying local authorities, nine of them in London and the tenth in Surrey.

An additional three per cent charge for any property not used as a primary residence has been charged since April 2016 to help towards doubling the affordable housing budget.

http://www.homesandproperty.co.uk/property-news/what-is-stamp-duty-the-property-transaction-tax-explained-a108691.html

Thursday, 2 February 2017

Zoopla to buy housing data firm Hometrack for £120m

By Rosalind Renshaw


Zoopla Property Group has announced it is buying Hometrack.


This data includes home prices in UK cities, and its automated valuations. The purchase has prompted speculation among agents.

The sum paid by Zoopla for the purchase is £120m, of which £108m will be paid on completion, plus £6m on each of the first and second anniversaries of the purchase.

Established in 1999, Hometrack is described by Zoopla as the UK’s leading automated valuation model provider and one of the leading AVM providers in Australia, generating over 20m automated property valuations each year.

According to the Zoopla announcement, Hometrack provides residential property market insights, analytics, valuations and data services to over 400 partners including mortgage lenders, new home developers, investors, housing associations and local authorities.

Hometrack currently partners with 15 of the top 20 mortgage lenders in the UK as well as all four leading Australian mortgage lenders, and its UK AVM is said  to be recognised by all the major ratings agencies.

The business, which generated revenues of £15.5m and adjusted EBITDA of £7.1m in the year to the end of June 2016, has 55 staff operating out of offices in London and Sydney.

Zoopla said that the acquisition of Hometrack “is another step in ZPG’s mission to be the most effective partner for its estate agency and new home developer partners”.

It added: “The combination brings together two of the UK’s leading residential property market insights and analytics providers, creating the most valuable property resource in the UK.”

The statement, which was made just after the close of stock market trading yesterday, went on: “Hometrack will continue to operate as a standalone brand and platform with the team forming the cornerstone of ZPG’s data services business, which will be headed up by Charlie Bryant, CEO of Hometrack.”

Alex Chesterman, founder and CEO of ZPG, said: “We are delighted to announce the acquisition of Hometrack, the clear market leader in AVM services in the UK.

“The deal gives us unrivalled capabilities to serve our estate agent and developer partners even more effectively with market-leading valuation tools and data intelligence to help them win more business.

“Hometrack is a perfect fit for us and I forward to welcoming Charlie and his team to the ZPG family.”

Bryant said: “We have had a long-standing relationship with ZPG and share the same vision of using data to help our partners operate more effectively.


“My team and I are very much looking forward to helping develop ZPG’s data services business, further growing the quality and breadth of the services to our partners, and cementing ZPG as the market leader for residential property market insights and analytics.”

http://www.propertyindustryeye.com/zoopla-announces-purchase-of-property-analyst-and-avm-firm-hometrack-for-120m/

Wednesday, 25 January 2017

Property transactions end last year almost unchanged at 1.2m sales

By Marc Shoffman
January 25, 2017



The Property Investor Centre

The number of property transactions increased by just 0.45% in 2016, HMRC figures reveal.

Provisional non-seasonally adjusted transaction data from the taxman shows there were 1,235,120 property sales in 2016, fractionally up from 1,229,58 in 2015.

In comparison, the number of transactions increased by 0.88% between 2014 and 2015.

On a monthly basis for December, transactions were at 109,100, up 5.1% on November and 4% lower year-on-year.

David Brown, chief executive of Marsh & Parsons, said: “Despite a number of obstacles in 2016, the total number of transactions rose slightly compared to 2015, to the highest since the financial crash.

“The resilience demonstrated in the face of a vote to leave the EU and marked changes to Stamp Duty – which significantly impacted sales of second homes and the buy-to-let market – is not to be scoffed at.*

“We’ve already witnessed an encouraging stream of interest from buyers across London during the start of 2017, particularly international buyers who have been buoyed by the falling value of the pound and continue to view London property as a solid investment.”

Shaun Church, director at mortgage broker Private Finance, said: “Reflecting on the second half of the year, the property market ended 2016 on more of a whimper than a bang, with transactions remaining largely flat and falling year-on-year.

“However, 2016 has been a very unusual stage in the life of the UK housing market with Stamp Duty changes resetting the dial for investors and wider uncertainty caused by the EU referendum.

“Given these challenges, the market has proven to be remarkably resilient and end-of-year sales meant December brought the largest monthly transaction total of the new Stamp Duty era.

“Although we have seen a degree of recovery since April’s reform, overall activity levels do not paint the full picture of pressures facing would-be homebuyers. Low supply continues to pose an affordability challenge for buyers at the lower end of the market, and there has been a continued slowdown in sales of higher value properties.

“The Stamp Duty change was originally designed to boost tax revenues, but with fewer high value transactions taking place, this could ultimately prove to be counter-productive.

“However, the good news for potential buyers is that Stamp Duty changes have suppressed house price growth at the upper end of the market, which has the potential to offset some of the additional costs they would otherwise face from a higher tax burden.”

Doug Crawford, chief executive of conveyancing firm My Home Move, said: “In the long term, demand for both rented and owner-occupied accommodation will support prices and sales volumes.

“There will undoubtedly be challenges for the market over the next 12 months, with the triggering of Article 50 and changes to landlords’ tax relief looming on the horizon.


“However, the property market has shown it is more than strong enough to overcome these obstacles.”

http://www.propertyindustryeye.com/transaction-growth-slowed-in-2016-hmrc/

Wednesday, 12 October 2016

The gloom lifts – and so does the property market


It’s curious how gloom, gloom pre-Brexit Britain’s property market has gained a much brighter outlook now that the result of the referendum has had three months to sink in.

And far from the Brexit vote giving the impression we hate Europe, a Mediterranean-style seafront house I took on only after Brexit has just been snapped up for £125,000 above the £1.45 million guide price making it, I believe, the most expensive single house ever sold on Portsea Island.

It's not that long ago that we also sold the most expensive house in neighbouring Gosport for £1.385 million.

But there’s more good news because buyer confidence has returned to such a degree that houses previously sticking in the market for far longer than either their owners or I would like have started to sell as well.

So Brexit is letting these owners exit the market with a smile on their faces and cash in the bank – or to invest in somewhere different to live.

It’s a curious phenomenon that things should suddenly get much brighter after such an outcome to the referendum. After all, none of us knows what lies ahead still, apart from uncertainty which has become the only certainty any of us have, if that makes sense.

Pundits are still kicking the future of our economy around like some battered football while politicians are saying we will trigger Article 50 and begin the journey to the EU exit door early next year – politicians apart from Theresa May, that is, who has the final say and, so far, isn’t saying!

I doubt any of us will ever truly understand the referendum. Portsmouth, after all, voted out yet could not be more Navy-focused than it is, a Navy that shares vessels with the French.

We also have a thriving ferry business forming the route by which many holiday makers and lorry drivers make their getaway to the Continent and subsequent return, allowing them to avoid the ruckus on the fringes of Calais.

Yet still the local populace votes to turn its back on neighbours who are nearer to us across the sea than Bristol is along the M4.

It’s something I’ll never quite understand but on the other hand I’ll be quite happy as long as it continues.

I would just like to point out, though, that my decision to replace my Audi with a Jaguar has in no way been influenced by the rise of Ukip!

https://www.estateagenttoday.co.uk/industry-views/2016/10/the-gloom-lifts--and-so-does-the-property-market