BREAKING NEWS – top 5 stories 14/06/2021
RESEARCH SUGGESTS GOVERNMENT BACKED 95% LOANS FOR FTB’s DISTORTS HOUSING MARKET
Recent analysis suggests that Landlord’s are finding it harder to buy housing stock, as a swathe of FTB’s are using the new funds that the government has set aside in a new scheme.
The scheme underwrites the risk element in 95% loan to value mortgages, and the 3.9BN fund is upsetting the balance of who gets the property.
The Government’s 95% LTV scheme for FTB’s is again an example of tinkering with the mechanics of the housing market, I wish the mandarins in Whitehall would take 10 minutes and ask agents of the ‘reaction’ to any move they make.
Helping FTB’s is a winner – a great soundbite – flipside, less accommodation for the PRS if supply becomes harder to source, house price inflation if a swathe of FTB’s get on the ladder they might not.
It is a lot like the Lettings Fee ban, no one thought excessive payment by tenants for checks was correct, but outright ban saw rents increase by 6.1%. So the cost in the end was met by ‘tenants’ the group that was to be protected.
HOUSING SHORTGAGE BUT 75% SAY NO NEW HOMES ON GREENBELT
There has been a lot of noise about building more homes, each year, though the population grows, the number of new residences being built is woefully under the 300,000 / annum target.
Casting around for the public’s view on the way forward, a recent survey suggests that as many as three quarters of those asked also feel that the ‘green belt’ should stay that way, and should not be open to development. Something will have to give.
NRLA’s BEN BEADLE SPEAKS OUT ABOUT THE RENT BENEFIT ‘GAP’
The CEO of NRLA has given an assessment that as the government has ‘fudged’ how over three million renters in the Private Rented Sector get the money they need to pay their rent. In that, some are getting other benefits rolled into a single payment the aptly named ‘Universal benefit’ payment.
This is of course making it difficult for some tenants to budget, causing hardship for landlords and tenants, historically those who were being supported by the state would have had a separate amount.
CHANGES IN RED TAPE REQUIRED TO BUILD HIGH RISE PROPERTIES MAY COME IN IN AUGUST
Possibly, as soon as the start of August and developer seeking to build a multi-unit scheme will also have to submit a separate fire risk assessment, as well as the obligatory planning proposal.
OFFICE FOR NATIONAL STATISTICS GIVES GREEN LIGHT TO POSSIBLE REBOUND IN ECONOMY
According to the ONS most recent data, the economy moved forward by 2.3% in April, and the Gross Domestic Product moved 1.2% above its tick rate at the start of Q4 2020. Encouraging signs of a rebound.
If you have a view – please let us all know by emailing me at [email protected] – Andrew Stanton Executive Editor – moving property and proptech forward.