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Wednesday, March 14, 2012

Monday 5^th March 2012

BPF Press Release - Retailers, Landlords and Monthly Payments of Rent

The BPF has warned retailers that any coordinated campaign to force landlords to accept monthly payments of rent (as opposed to quarterly) could be illegal under competition law.

 

New FMB Chief Executive

The FMB has appointed Brian Berry as its new Chief Executive.

DCLG Funding to Tackle Empty Homes Begins

Communities Minister Andrew Stunell has announced that the first tranche of government funding for action on empty homes in neglected neighbourhoods has begun.

 

Commons Written Answer - Landlords and Housing Energy Efficiency

In response to a parliamentary question from Mike Weatherley MP on what representations DECC has received from landlords of the least energy efficient properties, Minister Gregory Barker stated: "We have corresponded with a number of the organisations representing landlords regarding the private rented sector provisions in the Energy Act 2011. This includes the National Landlord Association and the Residential Landlord Association. We intend to engage the sector more broadly ahead of making secondary legislation in this area."

 

Commons Written Answer - First Time Buyers

In response to a parliamentary question from Graeme Morrice MP on support for first time buyers, Treasury Minister Chloe Smith stated: "The Government and housebuilders are together providing, around £400 million to assist almost 10,500 first-time buyers to purchase a new build property in England through the Firstbuy scheme announced at Budget 2011. Firstbuy provides a 20% loan to top up first-time buyers' own deposit of 5% allowing buyers to take out a mortgage for 75% of the property. FirstBuy is being delivered by the Homes and Communities Agency, working with housebuilders and housing associations, as part of our Affordable Homes Programme.  In addition, The Housing Strategy, published 21 November 2011, set out that the Government will also introduce a NewBuy scheme to help those who have a small deposit to buy a newly built home.  Under the scheme, home buyers will be able to purchase new build houses and flats with a 5% deposit. House builders and the Government will help provide security for the loan. The Government will take on a contingent liability which will build up in line with purchases under the scheme, to a maximum of £1 billion. This will help up to 100,000 families and young people to buy their own home."

Tuesday 6^th March 2012

Labour Party Press Release - Shapps a 'Broken Record'

Jack Dromey, Labour's Shadow Housing Minister, has stated in regards to the latest announcements from Minister Grant Shapps: "Grant Shapps is stuck like a broken record constantly re-announcing the same policies".

Economic and Social Research Council Report: 'Nation of Frustrated Home-Movers

According to the latest data fromUnderstanding Society, a study of 40,000 UK households funded by the ESRC, the downturn in the UK housing market has left the UK "a nation of frustrated, unfulfilled house-movers".  It found that between 2009 and 2010 only 10%-14% of people who wished to move actually did, and overall only 6.4% of people moved home during that period.

BBA Factsheet - Mortgage Interest Rates

The British Bankers Association has published a factsheet on "the factors influencing the cost of mortgages include customers' deposits, wholesale money markets, the Bank of England base rate and regulatory reform"

 

CLG Oral Questions Tabled

Questions for oral answer from the Secretary of State for Communities and Local Government, due to take place on 12 March, have been tabled.  Of note to NFoPP:

• Jim Cunningham: What assessment he has made of the (a) affordability, (b) length of tenure and (c) standards of housing afforded to tenants in the private rented sector.
• Sharon Hodgson: What assessment he has made of the (a) affordability, (b) length of tenure and (c) standards of housing afforded to tenants in the private rented sector.
• Graham Jones: What assessment he has made of the effect of the number of properties in the private rented sector on young people attempting to purchase a home.
• Peter Aldous: What steps he is taking to promote the refurbishment of empty and vacant homes.
• Andrew Gwynne: What assessment he has made of the (a) affordability, (b) length of tenure and (c) standards of housing afforded to tenants in the private rented sector.
• Stephen Gilbert: What plans he has to bring empty homes back into use.
• Huw Irranca-Davies: What estimate he has made of the number of new homes which will be built in 2012.
• Nick Raynsford: What assessment he has made of the difference between the number of (a) new homes being built and (b) units qualifying for the new homes bonus; and if he will make a statement.

 

Commons Written Answer - Taxation of Second Homes

In response to a parliamentary question from Tim Farron MP on what recent assessment the Treasury has made of the extent of the practice of re-designating property ownership to avoid tax liability on the sale of second homes, Treasury Minister David Gauke stated: "No such assessment has been made as it is not possible to distinguish between the cost of private residence relief attributable to nominations of main residences for avoidance and non-avoidance purposes. HMRC apply a risk-based approach to investigating any cases where they suspect an individual has nominated a property as the main residence on a spurious basis"

Westminster Hall - Council Housing

A "crisis" is building at the bottom end of the housing market, according to Austin Mitchell MP (Labour, Great Grimsby), who said in a Westminster Hall debate yesterday that there had been a "long period of disinvestment and under-investment" in social housing.  He argued that "given the Government's announced policy of selling off at even more substantial discounts, the houses cannot be replaced at the discount level being given."  He also argued that "rents are too high in the private rented sector, yet in the public rented sector they are being raised to 80% of private sector level."

Responding, Communities Minister Andrew Stunell argued that as a result of Government actions, "in the five years from 2010 to 2015, for the first time since 1979 there will be a net increase in social and local authority homes." Mr Stunell added that the recently announced right to buy scheme was on a "one-for-one replacement basis".

uSwitch Press Release - Nationwide Stamp Duty Offer

The launch of Nationwide's new stamp duty cash-back offer gives first time buyers much needed help, according to switching service uSwitch.com.  Michael Ossei, personal finance expert at uSwitch.com, stated: "Nationwide's offer could prove a lifeline for thousands of first time buyers who have yet to secure a mortgage or find a suitable home. With no promise as yet from the Government to extend the stamp duty holiday, Nationwide has nipped in with this offer which will lend first time buyers a much-needed helping hand."

BPF Support for Shelter's Homes for London Campaign

The BPF has thrown its weight behind Shelter's Homes for London campaign, and has urged each Mayoral candidate to make housing supply a key priority. "The BPF believes that most of the consequences of London's housing crisis are ultimately aggravated by lack of supply. It urged whoever becomes Mayor of London to get public land released for building rental homes, and ring fence money from land sales and plough it back into housing rather than see it disappear into "transport and New Year fireworks", a press release states.

Clydesdale Bank Research - Homeowner Expectations on House Value

According to research from the Clydesdale Bank, 84% of homeowners think the value of their home will increase or stay the same over the next 12 months.  16% believe the value will decrease.

Wednesday 7^th March 2012

Westminster Hall Debate - Government Support for First Time Buyers

The following Westminster Hall debate is scheduled to take place next week:

Tuesday March 14

9.30am - 11am

Government support for first-time buyers

Steve Brine MP (Conservative, Winchester)

Speculation on the National Planning Policy Framework

The Telegraph this week speculated that the final draft NPPF is being circulated in Whitehall for approval by departments, and that it includes an explicit brownfield first commitment, which will require councils to favour development in urban areas ahead of rural areas. The DCLG continues to say the final framework will be published by the end of March.

 

Shapps Opposition to 'Mansion Tax'

The Telegraph also carried comments from Housing Minister Grant Shapps regarding a potential 'mansion tax'.  Shapps has reportedly dubbed it a "granny tax", on the basis that such a tax would hit asset rich but income poor people - notably many pensioners.  According to theTelegraph, Mr Shapps is the first senior Conservative publicly to speak out against the Lib Dem proposals.

 

Commons Written Answers - First Time Buyers

In response to a parliamentary question from Graham Jones MP on what assessment the DCLG has made of the number of privately rented properties on access to the property market for first-time buyers, Communities Minister Andrew Stunell stated: "I am assuming that the hon. Member wishes to know what impact the size of the privately rented sector has on access to the property market for first-time buyers. Access to the housing market for first-time buyers is largely dependent on access to mortgage finance. The most recent data from the Council of Mortgage Lenders shows that, in 2011, buy to let mortgages accounted for 12% of all loans for house purchase. The equivalent figure for first-time buyers is 34%. In terms of value, buy to let mortgages only accounted for 8% of total lending for house purchase. At the same time private renting provides a vital safety net for those who cannot access home ownership, as well as a flexible option for those who choose to rent. It also underpins economic development by allowing those who cannot sell their existing home the flexibility to move to take up employment opportunities."

 

BPF Press Release - Stamp Duty Avoidance

The BPF has said following speculation the Chancellor intends to use the Budget to close an alleged £1bn stamp duty loophole, George Osborne should "tread lightly" with any anti-avoidance intervention.  A press release from the BPF states that: "The BPF can see the case for introducing targeted measures to ensure purchasers of high value residential property pay their fair share of SDLT, but it warned that any such changes should not be applied indiscriminately across UK property markets.  The dynamics and economics of the commercial property market are very different from the high end residential market, and the impact of a general clampdown could be disastrous, especially in regional commercial property markets."

 

HBF Customer Satisfaction Survey

The results of the HBF's latest customer satisfaction survey reveal that levels of satisfaction with new homes have risen "and now match or exceed those in any other industry or sector". The results reveal that:

• 9 out of 10 buyers are very or fairly satisfied with the overall quality of their new home
• 9 out of 10 buyers would recommend their builder to a friend

CML Research - Comparative Costs of Owning and Renting

New research has been published by the CML which analyses the comparative costs of owning and renting.  According to the CML, "there are two crucial factors that make a big difference to how you perceive the relative costs. If you ignore the need for a hefty deposit, buying is cheaper than renting a similar property across all borrowing types, and across all regions of the UK. But that is not surprising when you take account of the fact that a typical deposit might be 25%, so the borrowing costs relate to only 75% of the property's value, whereas a tenant will be paying rent covering 100% of the property...If you factor in the deposit (and how much a notional 100% mortgage payment would be), then the cost picture changes".

 

Thursday 8^th March 2012

£3.5m DECC Funding for Green Deal Training

The Department of Energy and Climate Change has announced a total of £3.5million in funding to help train people in key skills ahead of the launch of the Green Deal.

Lord Hodgson Call for Evidence

Lord Hodgson has published a call for evidence on the regulation of disposals of and mortgages over charity land.  The call for evidence references the fact that the Government response to the 2010 consultation "Making it easier for charities to sell and make other disposals of land" concluded that there are grounds to extend the definition to include people who are Fellows of the NAEA and also scope to consider extending the definition to include other property professionals, such as Fellows of the Central Association of Agricultural Valuers.

However, because of some wider criticisms of the general lack of proportionality and clarity in the regulation of disposals, the Government concluded that the whole of the regulation of charity land disposals should be considered as part of the review of the Charities Act 2006.  The deadline for responses is 16 April 2012.

Bank of England Base Rate Decision

The Bank of England's Monetary Policy Committee has voted to maintain the base rate at 0.5%.

DCLG Homelessness Statistics

New figures from the Department for Communities and Local Government show a 14% increase in the number of households accepted for homelessness help in England last year.

 

Grant Shapps Comments - Homelessness Stats

Housing Minister Grant Shapps said that the figures "underlined that many people were still suffering from the legacy of a debt-laden economy", and further that "the number of households being owed a statutory homelessness duty was still lower than for 28 of the last 30 years - and half the average level seen during the previous administration".

 

Jack Dromey Comments - Homelessness Stats

Jack Dromey MP, Labour's Shadow Housing Minister, responded to the figures stating: "The remorseless rise in homelessness shows how out of touch this Government is with the human impact of its economic and housing policies. It is an absolute tragedy that in 2012 so many families do not have a home they can call their own.

 

 

 

FORWARD PLANNER
Date	Institution/Organisation	Detail
13 March 2012	CML	Monthly Lending Statistics
13 March 2012	Nationwide	House Price Index
18 March 2012	Scottish Government	Consultation on SafeDeposits scheme closes
19 March 2012	Rightmove	House Price Index
21 March 2012	UK Government	Budget 2012 and Finance Bill
21 March 2012	Nationwide	Property Transactions in the UK
24 March 2012	UK Government	Last day of the first time buyer stamp duty relief
27 March - 16 April 2012	UK Parliament	Easter Recess
30 March 2012	DCLG	Deadline for responses to consultation on barriers to investment in the PRS (Sir Adrian Montague's review)
April 2012	DECC	From April 2012, estate agents will be required to attach the front page of EPCs to the written particulars of properties for sale or rent
10 April 2012	Nationwide	House Price Index
16 April 2012	CML	Monthly Lending Statistics
16 April 2012	Rightmove	House Price Index
30 April 2012	Nationwide	Consumer Confidence Survey
3 May 2012	Mayor of London	London Mayoral election
9 May 2012	UK Parliament	Queen's Speech
24 May - 11 June 2012	UK Parliament	Parliament in Recess
17 July - 3 September 2012	UK Parliament	Parliament in Recess