Category Archives: Property

News, Property, Property News, Retirement

The retirement living evolution – a brighter future for retirement communities.

Written by Dominic Stead, Property Director at My Future Living

The recent Autumn Budget brought some positive news for retirees, with the Chancellor reaffirming the government’s support for the full state pension triple lock. Come April 2024, pensioners will receive an 8.5% increase in their pension – a move that will help with challenging cost-of-living pressures. Since its inception in 2011, the triple lock has proved vital in safeguarding pensioners’ income. This recent announcement will help to reinforce retirees’ financial security and overall well-being amidst the ongoing economic fluctuations.

For those relying solely on the state pension, this increase promises a more comfortable retirement, with the state pension rising from £203.85 per week to £221.20 per week (£11,502.40 per year). This boost in financial stability will also help maintain robustness within the residential retirement market. With an ageing population in the UK, the financial stability and resilience of the sector is vital as it means that retirees have housing options in the future that will suit their needs.

Growing the retirement rental sector

Choosing the right place to live in later life is a major consideration and retirement communities are growing in popularity. With people living longer and healthier lives, these developments attract independent and active retirees who desire a safe and friendly community of people of their own age.

Another notable shift is the move towards renting. The volatility in the housing marketing means that traditional notions about purchasing property are being reassessed and consequently more people in their 60s, 70s and 80s are choosing to sell up and rent. The 2021 census revealed a significant surge in renting households over the past two decades in England and Wales. Estate agency, Hamptons points to the landscape of British homeownership steadily shifting and predicts the number of over 65 rented households to pass 1m by 2033[i].

Older people see the benefits of downsizing as freeing up equity and savings from their home, which gives them more options than ever, including being able to help younger members of the family on to the housing ladder.

The private rental sector is not always the best option for older people, especially since it was reported in July UK rents rise have risen at the fastest pace since records began[ii]. For these reasons, renting in retirement communities will become a popular choice for many, not only as it’s more affordable but because of other benefits too.

Advantages of retirement community living

In our recent customer survey, nearly a quarter of people said their finances had improved since moving into a retirement development. Many have used the capital from the sale of a house to fund their retirement and they benefit from the fact they no longer worry about some of the issues that may arise in the apartment such as the cost of maintaining a home, as these services are included in the rent. Also, rents are usually lower when compared to the private rental sector in the same area.

But there are other benefits too. Retirement developments tend to be centrally located, in desirable places and close to amenities and transport. With communal spaces for residents to get together and enjoy activities and events they can also be very sociable places and many residents organise outings to local attractions, pubs, and restaurants.

Most rental apartments are available with assured ‘lifetime’ tenancies and this security of tenure provides great reassurance for older renters. For additional support, there is a 24-hour emergency alarm system in each apartment and an onsite manager on duty during the day.  With these many advantages and the changing perception of renting, retirement communities will only grow in demand in the future. Not only can they give people financial security, but they also match their lifestyle aspirations too. People can live with likeminded people and share social connections, but at the same time have neighbours they can rely on when needed.

How retirement landlords are lending their support

Landlords like us are committed to supporting retirees and ensuring they live in a safe, secure, and affordable environment. We want people to live happy lives in housing that meets their needs as they age.

One way we achieve this is by capping rent increases to 6 per cent maximum annually, which is far more manageable than the 20% increases that we have seen in some areas this year. We also present this information in a clear and transparent figure to people before they move in.

We are also committed to improving energy performance certificates to level ‘C’, well ahead of any legal requirement to do so, which will help people make savings on their energy bills.

Our assured ‘lifetime’ tenancies are also a game changer for those who previously may not have considered renting. These give the same security of tenure as home ownership, but people have all the other benefits that living in a retirement community brings.

We also support maintenance within the apartments. Things go wrong in homes – boilers break, roofs leak and fences fall –which people need to deal with if they own their home. Renting takes away all this hassle and the cost, as it is the landlord’s responsibility to take care of all these things. In addition, rent includes service charges and ground rent, which makes budgeting easy and more straightforward for people, plus we have a welfare officer whose sole responsibility is supporting our tenants.

The Chancellor’s announcement of the state pension increases in 2024 is a milestone in supporting retirees’ financial security and wellbeing. Alongside the government’s commitment, proactive actions by retirement landlords play an instrumental role in creating thriving and secure retirement communities. As the retirement landscape evolves, these efforts pave the way for a better retirement experience and lifestyle for all. We believe this is what everyone deserves in later life.

[i] https://www.hamptons.co.uk/articles/june-2023-lettings-index#/

[ii] https://www.independent.co.uk/news/uk/home-news/uk-private-rent-ons-housing-b2378128.html

Hampshire, News, Property

Dragon Court celebrates final chapter with conversion of retail space into much needed high-quality homes

Local independent housing association, PHA Homes, in partnership with leading property developer, Jansons Property, is pleased to announce the completion of five brand new high-quality homes at the Dragon Court development in the heart of Petersfield, Hampshire.

Dragon Court is the result of five years of planning, development and construction plus careful consideration of local requirements including the increasing demand for homes which are energy efficient, built to a high standard, and are in keeping with the town centre. This £4 million project first broke ground in Autumn 2020 and construction progressed steadily over the past three years. In 2023, the final chapter of the development involved a change of use on the ground floor from retail space to residential.

 

Andy Jansons, Managing Director of Jansons Property, explained; “The pandemic brought many changes to Petersfield along with the rest of the country. One major change was the reduction in demand for physical retail space with the shift to online shopping. Consequently, we needed to rethink the retail space originally included in this development. So, with the ever-increasing need for high quality, sustainable homes in the region, it made absolute sense to apply for a change of use post pandemic from retail to residential.”

The development was financed through a combination of public funding and private investment.

 

“We are thrilled to officially welcome the new residents of Dragon Court,” said Linda Wallace, Chief Executive of PHA Homes. “This joint initiative demonstrates our commitment to providing energy efficient, affordable housing so more in our community have the opportunity to thrive.”

 

The accommodation provides a mix of one and two bedroom apartments, with an open kitchen and living area, and easy access to the town centre. A public space featuring the town fishpond and an original mosaic are also located on site. “Housing which meets the needs of local people is essential for building strong, equitable communities,” commented Andy Jansons, Managing Director of Jansons Property. “Like PHA Homes we’re delighted to complete this impressive development that will allow more people to establish roots and grow.”

 

Jansons Property is a property developer and investor founded in 2003 that delivers high quality, energy efficient homes which are built to stand the test of time and complement their surrounding areas. Dragon Court was created in partnership with local government, businesses and community partners including PHA Homes.

 

Jansons Property also worked solely with local firms to complete the development and acknowledge the excellent contribution from local project manager, Boulter Mossman and Portsmouth-based contractors, PMC.

 

News, Property

“If this cycle continues for too long we will enter dangerous territory”, warns property expert

HOUSE PRICES are likely to continue to fall next year, a leading property expert has predicted.

Jonathan Rolande, from the National Association of Property Buyers, said many will celebrate the plummeting price to buy a home.

But he warned the market is now entering “dangerous territory”.

Mr Rolande said: “I suspect house prices will continue to fall in many areas next year.

“But people should be careful what they wish for. House price inflation at its previous rate was, of course, unsustainable. It caused a huge imbalance in the market, with many non-homeowners losing hope of ever being able to afford a property of their own

“Redressing the balance towards buyers again restores some fairness. But it won’t just be homeowners who are hoping that a better market bounces back in the New Year.

“A property market that loses value is bad for more than just those hoping that their nest egg goes up in price. A downward spiral can gain its own momentum as prices fall and consequently, buyers become more reluctant to buy and lenders to lend, fuelling the downward trajectory. If this cycle continues for too long we will enter dangerous territory. It would be very bad news for the wider economy which is intertwined with the property market.

Mr Rolande’s comments come in the wake of a report which revealed

homebuyers are in the strongest negotiating position for five years.

New research shows an average £18,000 has been knocked off asking prices with the average discount on a house purchase reaching its highest since 2018.

The stats are a further sign that it remains a “buyer’s market” despite the long-term shortage of homes in the UK.

Research by the property website Zoopla showed the average discount to asking price for completed sales grew to 5.5% in the first half of November, up from 3.4% across the first half of 2023. The discount was even greater in London and the south-east of England, at 6.1%, which equates to £25,000.

Energy, News, Property

National Association Of Property Buyers Calls For More Efficient Rules On Energy Regulations

LANDLORDS want “clearer” rules on energy efficiency regulations, a leading property association has said.

A new survey released last week by the Social Market Foundation – a cross party think tank – found an overwhelming majority (79%) of landlords believe they should be subject to stricter energy efficiency regulations.

Private sector landlords are in fact more supportive of raising the MEES to grade C than the general population, with only 11% opposed to such a move.

 

Commenting on the findings, Jonathan Rolande, spokesman for the National Association of Property Buyers, said: “Even if it involves expensive improvements, landlords just want clarity – not goalpost moving.

“Improvements such as double glazing, insulation and efficient boilers last decades so are in effect a one-off cost.

“Landlords should be accepting of them – they can be deducted for tax, wiping off up to half of the outlay, and they make tenants, who cannot do such work themselves, more comfortable and better off. And that’s before we consider environmental benefits.

“With everybody worried about high heating costs this winter, landlords should not expect their tenants to have to live in a property that is not as well insulated as their own home.”

 

In September, Rishi Sunak scrapped plans to require all landlords to upgrade their properties to at least EPC C by 2028, citing the need to protect tenants from unfair price hikes in rent due to the cost of renovations.

News, Property, Property Rentals

Leading Property Association Shares Five Steps to Solving Britain’s Rental Crisis

SOLVING the country’s rental crisis needs to be the “number one priority” for the Government when it comes to tackling housing next year, a leading property association has said.

The National Association of Property Buyers say millions of people are now being priced out of affording to rent a home across the UK.

And they fear the problem is going to get much worse in 2024 unless “urgent intervention” is taken to address the supply crisis across the sector.

 

Jonathan Rolande, spokesman for NAPB said: “We are already experiencing a crisis in the rental sector, but this is only going to get worse in 2024.

“Prices for properties, often of a very low standard, are soaring in all parts of the UK – driven by a shortage in supply.

“We urgently need to see measures to address this because millions of people can’t even dream of renting a home – let alone buying one.”

 

Setting out the five steps the NAPB think are needed in this area, Mr Rolande said:

 

1. Encourage landlords to insulate.

Rental property includes some of the UK’s worst insulated, energy-inefficient homes. This is because many are old, over commercial or have not been upgraded in line with more modern standards. Less altruistic landlords see little reason in upgrading boilers, insulation and windows but doing so would of course make the home more comfortable for the tenant and save them £1000+ every year. There are also environmental benefits. Allowing landlords to reclaim enhanced tax relief for these works would encourage more widespread installation and give tenants more disposable income.

2. Build.

If it makes business sense for private landlords to buy and rent a property, surely it can be done by councils too. Those who build thousands more council houses and flats will have recouped the investment within a decade or so whilst providing secure homes built to good modern standards.

3. Plan for population growth.

In the year 2021 to 2022, the population of England and Wales grew by 578,000*. This increased number of people would occupy every one of the 150,000 homes built in the same period meaning we (at best) tread water on housing.

4. Improve Clarity for Landlords.

Landlords make property decisions based on long-term plans. 5 to 10 years is typical and yet, when it comes to legislation, there are constant changes either happening or being discussed and quietly dropped. Tenant fee bans, Section 21 ban, EPC changes, a Housing Ombudsman, safety regulations, rent control, tax changes – whatever you think of them, all sow seeds of doubt in the minds of many existing and prospective landlords. If the government want a Private Rental Sector they need to give it clear guidance and direction. Often legislation is adapted to easily, but the fear of it has reduced the number of available homes.

5. Change tax laws to reward landlords who grant longer lets with moderate built-in rent increases.

Many tenants complain of a feeling of insecurity. Allowing landlords to keep more of their rent income would encourage longer, more secure lets.

 

 

 

News, Property

Property Market Set For Pre-Christmas Boost As Expert Says: “People Are Looking To Buy Again”

THE housing market could be set for a pre-Christmas boost, according to a leading property association.

The National Association of Property Buyers say there are “positive signs” about the remaining few weeks of 2023.

And spokesman Jonathan Rolande said prices may buck the trend of recent falls. 

He said: “Despite what many people think, the run up to Christmas can be a good time for the property market. It’s true that the number of people who start looking to buy or sell reduces in the early winter months but there is good news too.

“Those committed to moving will be focused on getting to the all-important completion day in time for Christmas.

“Don’t expect the increased activity to reflect in house price data though, the rush to complete is for property sold many weeks before, meaning new sales will be few and far between until January.

“When figures for the final quarter are released, they may show sufficient activity to have supported prices that have prevented another drop – that is about the best we can hope for as we see out the year.

“If that trend continues into 2024, many in the property industry will breathe a huge sigh of relief – it could have been a lot worse.”

Outlining why there are reasons to be positive he continued: “There is some cautious optimism around too. I hear talk of landlords looking to buy again, tempted back by higher rents – sadly, what’s bad for tenants is good for them. Interest rates have quite possibly peaked, making ‘cash in the bank’ a less attractive option for many who will be tempted to put their nest egg into a home for themselves, a relative or buy-to-let.”

Mr Rolande also thinks a looming election might benefit the market.

He added: “An election may lend a boost to the market as the government tries to create a ‘feel-good factor’ to boost their chances. Fuel bills have dropped and if the winter is mild, we will all spend less of our income keeping warm this year, compared to last. Some will see an increase in their pay packet following the reduction of National Insurance in January and a rise in the minimum wage in April will help many. But these ‘wins’ are dwarfed by the cost of goods, food and services that have rocketed in the last two years and whilst they are going up more slowly now, they are not falling in price. The economy is in a fragile state with many still on the very edge of affordability for everyday expenses.

The property market may have scraped through this year, but there are still many things that could blow it off course again so we shouldn’t take anything for granted.”

Disability, Holidays, News, Pembrokeshire, Property, Travel, West Wales

Welsh luxury holiday resort expands its accessibility offering with newly launched adapted Platinum lodges

Bluestone National Park Resort has launched four adapted lodges as part of its brand new Platinum range.

The luxury holiday resort, named third best in the UK for 2023 by Which? magazine for a second year running, sits in 500 acres of National Park in the scenic countryside of Pembrokeshire.

The Platinum lodges are the most luxurious offering yet, featuring sunrooms, picturesque surroundings, a private entrance, ‘cwtch’ rooms, and 20% more space.

The new lodges have been specially designed to assist those who need additional assistance, including being arranged over a single floor with two bedrooms, a wet-room, and an open-plan lounge, kitchen and dining area, as well as an outdoor patio.

They also have wider doorways, a shower seat and handrails, emergency pull cords and a designated parking space for Blue Badge holders.

The newly launched Platinum lodges boost the resort’s existing accessible offering, with six Caldey lodges having already been adapted for disabled guests.

Guests are able to enjoy a diverse array of activities within the resort, as well as the natural surrounding beauty of Pembrokeshire’s beaches, cliffs and harbours.

Blue Lagoon, a subtropical water park, has designated disabled changing rooms, four aqua chairs and a hoist which can be requested at reception.

While Nature Trails found across the resort have been carefully designed to ensure there are wide pathways, limited steps, and, where needed, disabled access.

The Serendome, a covered outdoor playground, features a state-of-the-art amphitheatre that is wheelchair accessible and also offers a multi-level, aerial adventure course that is suitable for wheelchair users.

The Bluestone team are also able to make arrangements for guests with additional needs – such as those with sensory issues – to have exclusive access to facilities such as Blue Lagoon, Serendome or its indoor play area, The Hive, outside of standard operating hours.

William McNamara, founder and chief executive at Bluestone, said: “Our Free Range Manifesto embodies our commitment to creating a place where children of all ages and abilities can explore nature in beautiful surroundings.

“We’re extremely dedicated to making our resort and holidays accessible to everyone; from tailoring the lighting in our indoor play area to suit those with sensory needs, to opening our facilities outside of standard operating hours for guests who would benefit from quieter sessions.

“We believe that everyone who visits Bluestone deserves an unforgettable experience, which is why we would encourage guests to contact the team in advance to discuss any specific requirements they may have so we can ensure these are meet during their stay.”

With over 100 activities to choose from on the resort, many of which can be adapted for those with additional needs such as bowling or axe throwing, the Bluestone team are able to advise on the most suitable activities ahead of your stay.

Bookings to the adapted Platinum lodges can be made via Bluestone’s website: https://www.bluestonewales.com/resort.

News, Property, Proptech

Property Expert Calls for Chancellor to Provide Targeted Support to both Landlords and Tenants

When Chancellor Jeremy Hunt gets to his feet on Wednesday to deliver his Autumn Statement, he should consider offering support to both tenants and landlords, according to one PRS expert.

While rising rents caused by supply shortages have hit tenants hard – especially those who rely on the Local Housing Allowance (LHA) – many landlords have in turn had to cope with increased interest charges on buy-to-let mortgages, which some claim have rendered their rental properties unviable.

 

Neil Cobbold, managing director of automated rental payment and client accounting specialists PayProp UK, said: “There are tenants and landlords struggling in the Private Rented Sector (PRS) who require swift and specific measures from the Chancellor.

“The Local Housing Allowance has not been increased since April 2020. And last year, the Government confirmed that the current freeze on housing benefit payments would continue into 2023/4.

“According to the Institute for Fiscal Studies, rents in the PRS have increased by more than a fifth since the freeze and, as at June 2023, on average only 5% of rents can be covered by the LHA.

 

The most vulnerable

“Additionally, there is a tremendous shortage of homes to rent in the social housing sector. This has left thousands of families in England struggling to find an affordable property. These are people on the lowest incomes and who are the most vulnerable. Thanks to the LHA freeze the PRS has become too expensive, and on the social housing side, the cupboard is bare.”

 

There are also serious implications for some tenants once the government is satisfied with the progress of reforms to the court system and Section 21 is abolished.

“Low-income tenants who are evicted under Section 8 due to rent arrears will find it almost impossible to find another rental property in the private sector as only 16% of landlords would be willing to rent to a tenant with a history of rent arrears according to the latest English Private Landlord Survey. As things stand, the only immediate alternative would be temporary accommodation, which is hugely expensive for local authorities.

“It’s a question of where the Government wants to spend the money. Do they want to raise the LHA rate to a realistic level? It would make a significant difference and it is long overdue. Or will we see a future increase in the cost and volume of temporary accommodation?”

 

Supply issues

One long-term way to bring down rents is to build more homes, but that must not lull the government into ignoring the short-term supply issues facing the sector.

While some landlords are retiring and selling their properties to fund it, others who continue as landlords are facing high mortgage costs, increased regulation and a heavy tax burden, which may put them in an untenable position.

Currently, all rental income made from a property is taxed – landlords can partially claim back mortgage interest costs, but only up to the basic tax rate of 20%.

 

“Many have called for the abolition of Section 24, but it seems unlikely that the Chancellor is going to consider it this time around – even though it creates an incentive for higher-rate tax-payer landlords to incorporate their properties as a way to claim mortgage costs as an expense and pay corporation tax at 25%, rather than the 40% or 45% personal tax rate on their rental income. As a result, some landlords are now selling their properties.

“A measure the government could consider is extending the first-time buyer’s Stamp Duty Land Tax relief to tenants who don’t own a home and have been renting for more than 12 months, to prevent wealthy buyers renting for a few months to take advantage. This could encourage tenants who have previously owned or inherited property and subsequently sold it, or who have married someone who previously owned property to take advantage of the tax saving and consider buying instead of renting. The resulting reduction in demand for rental properties could also help cool rent price increases for other tenants.”

 

Stimulating sales while retaining stock

“Another measure the Chancellor could introduce, to ensure as many PRS properties as possible remain in the sector, is to incentivise landlords that need to reduce their stock to sell to other PRS landlords.

“To achieve this, the Chancellor could reduce Capital Gains Tax for landlords who sell their properties to other landlords who commit to keeping it in the PRS for a fixed number of years.

“A measure like this would also stimulate the sales market to some degree, but the main advantage would be in retaining as many properties as possible in the rental market.

“What we don’t want to see is an influx of owners shifting properties to holiday lets, second homes or keeping them empty for asset appreciation.”

News, Property, Retirement

Downsizing and renting in retirement can ease cost of living pressures says My Future Living

A recent survey from My Future Living, the UK’s leading retirement rental brand, reveals that many retirees are turning to downsizing and renting as a practical solution to address their financial concerns and enhance their retirement lifestyle.

The research, conducted amongst a diverse group of people aged 55 and above living in retirement developments through My Future Living, showed that almost a quarter (23%) said that moving to their current home had improved their finances.

Almost a third had been homeowners prior to moving to a retirement development, with 41% having sold to have more money for living expenses in retirement.  Having the security of an assured tenancy was the top reason they decided to rent rather than buy, followed by affordability and not having to worry about maintenance, upkeep and repairs.

The survey also highlighted the rising cost of living was the biggest worry for 29% of retirees, followed by their health and funding their retirement years. This comes as a new survey from Age UK[i] found that almost a third of over 60s – equivalent to 4.2 million people – have recently cut back on food or groceries due to the cost of living, rising to 40% of people aged 60+ living in a household with an income of £20k or lower.

 

Dominic Stead, Property Director at My Future Living, said, “Retirement should be a time of relaxation and enjoyment, free from financial worries. Our survey reveals that downsizing and renting in retirement can be a positive move that can boost people’s finances and is often a more affordable option than buying a smaller home. With renting people don’t face unexpected maintenance and repair bills, there is no stamp duty to pay and the money that was sat in bricks and mortar can be used to enable people to enjoy a comfortable retirement.

“Assured tenancies are often the icing on the cake for those that may have previously ruled out renting. It means people only have to move once and don’t have to fear being asked to leave by the landlord, as long as they stick to the terms of their lease. There are also other benefits such as the social side of living in a friendly retirement community that is also part of the appeal for many. With no end in sight to the cost of living crisis – downsizing and renting may be on the cards for more people next year as a way to fund a better retirement.”

Trevor’s Story

When Trevor Worrell aged 67 years downsized to a one-bedroom flat in retirement development Marlowe Lodge in Croydon through My Future Living he finally found a community where he belonged.

After taking early retirement aged 40 from his job as a technician officer for London Underground, Trevor lived in Clapham for many years so he could be close to his father and look after him.

Originally from St Andrew in Barbados, Trevor enjoyed living in Clapham as it was an easy commute to his job. However, after 30 years, he felt it was time to slow life down and move to a smaller place which didn’t need so much maintenance and made the tough decision to relocate and rent an apartment in a retirement development in Croydon. Being within an easy distance to Gatwick airport was important as he used to travel a lot to see family and friends in Barbados.

Trevor comments: “I don’t travel so much now since Covid-19, but I am so happy here it suits me well. There are over twenty of us at the development and we all know each other very well, which means there’s always a friendly face around and I feel like we’ve got our very own little community.”

During the summer, the residents of Marlowe Lodge get together in beautifully landscaped gardens for drinks and use the lawn for games of croquet. As a single man, Trevor enjoys the company of the other residents. He says, “There’s always something going on and I never feel like I live here on my own. We have film night and fish and chip night in the communal lounge every Friday.”

Trevor enjoys the benefits of an assured tenancy through My Future Living which gives him peace of mind as he has protection from eviction and can stay in his home for as long as he wishes (providing he sticks to the terms of his tenancy). Plus the freedom to give the required notice and leave at any time if he wants to.

Trevor says he’s got everything he needs nearby: “There’s a doctor’s surgery next door, a barbers two doors down and the local supermarket is just opposite. I don’t need to venture far but there’s a bus stop close by which is handy when I want to go out for the day and visit my social club in Clapham, where I am still a member.”

Trevor adds: “I don’t have any plans to leave Marlowe Lodge as I feel happy and settled. This place ticks every box for me plus I feel like I have my friends around men and the communal lounge is a lovely welcoming place to sit and chat to whoever is passing. “

To find out more about renting a home in a retirement development visit: www.myfutureliving.co.uk

[i] https://www.ageuk.org.uk/latest-press/articles/2023/almost-a-third-of-over-60s–equivalent-to-4.2million—have-recently-cut-back-on-food-or-groceries-due-to-the-cost-of-living-crisis/

News, Property

First 100 Days – National Association of Property Buyers Discuss Why and How Next Government Needs to Tackle The Housing Crisis

THE UK’s largest property buyers association says the next Government should reduce stamp duty, enhance tax relief for “green” landlords and embark on a campaign to turbo-charge house construction.

The three demands form part of a five-point plan outlined by the National Association of Property Buyers (NAPB) – which they say should be rolled out in the first 100 days by whoever wins the keys to Number 10.

The intervention by the NAPB – whose members purchase around £1.5bn of property annually – comes amid growing concern about falling house prices across the UK.

And Jonathan Rolande, from the NAPB, said without a clear roadmap prices could “fall every month in 2024”.

The recommendations come days after Labour pledged to turbo-charge housebuilding if they win at the next Election.

Outlining the five steps they think should be taken by the next Government, the NAPB said:

 

Reduce Stamp Duty for downsizers – full-rate Stamp Duty should be suspended for so-called “last time movers” to increase the market availability of larger, family-sized homes. The offer need only be limited for a 12-month period only, as stock levels are beginning to increase due to the current chill in the property market. There have been calls previously for a “one move free” scheme for the over-65s, mirroring the scheme for first-time buyers for homes valued at up to £425,000 in England and Wales.

 

Make clear a ten-year plan for property – setting targets for house building is all well and good, but who is actually going to build them? The construction industry is beset with skills shortages – an existing situation which has been exacerbated by the Covid pandemic. A major campaign is needed to persuade school-leavers and graduates that careers in construction really are interesting, rewarding and well-paid, whether it is an architect, structural engineer, surveyor or bricklayer. Such campaigns are usually the preserve of the Construction Industry Training Board, but the huge shortage of housing, especially social housing, would seem to call for a national, sustained, Government-sponsored campaign, in line with Sir Keir Starmer’s plan for a national programme of renewal. It is children aged 12 now who will be building homes in ten years’ time. The time to start is now.

 

Do not rely on the private sector – house-builders will only build for profit and have a vested interest in constraining supply to keep prices high. Levelling Up Secretary Michael Gove has accused the housebuilding industry of acting like a cartel. If the sales market is flat, the number of new homes being built falls drastically. The Government has undershot its own targets for years and some 1.1 million homes have been granted planning permission in the last decade but have never been built. Central and local government administrations need to be empowered to begin building on their own land with a view to renting homes to local residents. New affordable homes are desperately needed and this is one way to kickstart a reversal of decades of underinvestment.

 

Enhance tax relief for landlords who insulate their tenant’s home – the cost of living crisis has brought energy-saving measures into the spotlight and insulating homes is key to ensuring that energy is used efficiently. It is a key demand of pressure groups opposed to the use of fossil fuels – but landlords need an incentive to do it. Offering 120% tax relief for a two-year period for loft and wall insulation and on items such as heat pumps would reduce emissions and save enormous sums for hard-pressed tenants, who could see a 20-25% reduction in the energy they use for heating.

 

Increased council tax on second homes – local unease over second homes where owners leave them empty for much of the year has hit the headlines and is a growing issue that needs tackling. Second homes have been blamed for driving down the affordability of housing for local residents in high-demand areas where second homes are often used as holiday accommodation. The same should apply to empty homes that are not on the market for sale or rent. The Government’s proposed levelling up legislation, which is currently passing through Parliament includes a proposal to double council tax on second homes but it remains to be seen whether that will survive at the end of the process. There are also question-marks over whether that is enough or if the measure needs to be applied more broadly.

 

Jonathan Rolande, from the NAPB, says: 

“Whoever wins the race to be the next Prime Minister will have to deal with a housing crisis. At present the prospect of ever owning a home is a complete fantasy for millions of young people.

“And rising numbers are now unable to even rent a property due to the soaring cost in many towns and cities.

“The next Government needs to make addressing this crisis an immediate priority and set out a clear roadmap in their first 100 days as to how they will tackle the situation.

“There are many tools at their disposal and the NAPB has today outlined five measures we’d like to see introduced.

“Given the current direction of the housing market it is possible we could see prices fall every month next year – which would be a crushing blow to millions of homeowners.

“Proactive and positive steps by whoever gets the keys to Number 10 can reverse that trend.”

 

Elliot Vure from property lender Together says: 

“It’s shocking how successive Governments of all colours have failed to fix a housing crisis which has dragged on for years and we need a new Prime Minister, of whichever party, to deal with this housing emergency as an urgent priority.

“What is needed is a long-term strategy and we welcome the NAPB’s five-point plan as a wholly sensible starting point.

“Reducing stamp duty for ‘last time movers’, rewarding landlords for improving the energy efficiency of their properties and boosting construction will be key to stimulating the property market in the first 100 days of a new PM’s tenure.

“Equipping school-leavers with the construction skills we need to meet demand for new housing is also crucial to setting the firm foundations of the property market in the future.

“We also need an emphasis on more support for entrepreneurial developers looking to create homes through modular housing, and reform of what can be painfully drawn-out planning processes, to meet the ambitions of developers, investors and home-owners in the future.”