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Senior politicians and campaigners are calling for hefty fines to be doled out to Britain’s biggest housebuilders if they are guilty of shoddy workmanship. Ministers are being urged to ensure a New Homes Ombudsman has adequate power to penalise developers guilty of poor building standards. The Queen’s Speech proposed a law requiring property developers to belong to a New Homes Ombudsman scheme, which could investigate complaints and award compensation. But campaigners say this body should also have the power to fine builders that put up unsafe and poor-quality housing. “This ombudsman needs to have teeth, such as the ability to impose substantial fines, which other ombudsmen generally don’t,” said Paula Higgins, chief executive of the Homeowners Alliance campaign group. “Money talks. Housebuilders will have more incentive to listen if it hurts their bottom line.”
The Daily Telegraph (13/01/20)
Plans for a new 28-storey tower on the banks of Greenwich’s Deptford Creek have been approved, due to their “architecturally superior” design. The Edition Group’s full planning application for Ravensbourne Wharf, which includes 129 residential units as well as office and café space, was passed on Tuesday by Greenwich’s planning board. The second floor of the tower, which consists of a “contemporary design” including balustrades, and a mixture of concrete, planters and mesh on the outside, will include a gym, fitness studio, and library, with a play space, residents’ lounge and roof garden also available to residents.
News Shopper (09/01/20)
Halifax shows 4% rise in house prices for 2019
UK house prices rose 4% in 2019, according to Halifax, as a December bounce saw the average property's value jump 1.2%, or £4,000 – the largest monthly rise since February 2007. The Halifax index, based on the lender’s own mortgage approvals, showed the average house price climbed £9,136 last year to £238,963, but the bank said that it only expected “modest” rises in the year ahead. Halifax managing director Russell Galley said: “Looking ahead, longer-term issues such as the shortage of homes for sale and low levels of house-building will continue to limit supply, while the ongoing challenges faced by prospective buyers in raising deposits will serve to constrain demand.” The bank has forecast gains of 1 to 3% for house prices in 2020.
City AM (08/01/20) Daily Mail (08/01/20) The Daily Telegraph (08/01/20) The Independent (08/01/20) The Times (08/01/20)
According to Nationwide, the number of first-time buyers rose to 354,400 in the year to October, which is more than double the low in 2009 and is the fastest pace of growth since before the financial crisis. This growth was boosted by weak 2019 house price growth and low mortgage rates, which are typically below 1.9%. Nationwide chief economist Robert Gardner said: “Low borrowing costs have also provided important support. Even though house prices remain high relative to average incomes, the cost of servicing the typical mortgage as a share of take-home pay has remained close to or below long run averages in most parts of the country.”
The Daily Telegraph (02/01/20)
The 2010s were the weakest decade for house price growth since the 1990s, new research has revealed. House prices rose by 33% during the 2010s, while the 1990s saw the average property grow in value by 21%, according to data from Nationwide. In the 1980s, house prices rose by a whopping 180% while in the 2000s they climbed 117%. London was named as the top performer of the last ten years with house prices rising twice as fast as the UK average, while in the 1980s, East Anglia topped the regional board with growth of a massive 227%. The last decade has also seen a widening in the gap between the least affordable and most affordable regions. London, the least affordable region, saw its house price earnings ratio reach 8.8 at the end of 2019. The area with the lowest ratio in 2019 was Scotland with a total of 3.2. Northern Ireland has seen the lowest house price growth of all regions with prices up just 2% compared to the end of 2009.
Daily Mail (09/01/20)
Writing in The Telegraph, Adam Williams considers how a post-Brexit environment will affect homeowners, stating that Britain may no longer align itself with the EU mortgage credit directive following its exit from the bloc. The directive has been blamed for the creation of the “mortgage-prisoner” generation. Boris Johnson has also stated that he intends to weaken first-time buyer mortgage rules, which he would be able to do after Brexit.
The Daily Telegraph (02.01/20)