BREAKING PROPERTY NEWS – 28/10/2021

Estate Agent Networking Breaking News

Daily bite-sized proptech and property news in partnership with Proptech-X.

 

What has Sunak’s Autumn budget done for property?

An interesting budget speech covered all the hot topics in property, but it was not a very joined-up strategy. On the one hand, Chancellor Rishi Sunak could be seen as caring, by imposing a 4% levy on developers who make more than £25 million in profit. The proceeds are to be used for a fund to tackle the cladding scandal. Overall, it appears that the budget – as far as property is concerned – has split opinion.

The grim reality is, this 4% levy is likely to raise just £2 billion in the next ten years. The current estimate of remediation works to unfit properties sits at £50 billion. That’s a lot of people who, in three years, will still be trapped living in unsafe properties at risk of fire. At present, there are thought to be over 12,000 blocks of flats that may need remediation.

In an attempt to console the builders and the huge number of people needing homes to live in, he said that there would be multi-year capitalisation into building new homes to the tune of £24 billion. Given that there is a whole generation of homeowners sitting in properties that are not built properly, maybe the government needs to look at who is going to build these.

Brownfield sites again were in the budget, with £1.8 billion being earmarked to develop over 37,000 acres of contaminated land, which one property pundit said equated to just under £12,000 per dwelling. For some of these hazardous brownfield sites, there is no financial outlay big enough to make the sites viable before any building starts. But they’ll continue to peddle the myth, nonetheless.

There was some good news around planning, with the slightest hint that paper would give way to digital. £65 million has been promised to go into freeing up the planning system. It sounds like a big figure, but if past government-led software solutions are anything to go by, a few consultancies in the mix, then five years of building the wrong thing will probably end up like many of these Whitehall initiatives…Serco’s Test and Trace, being just one disastrously expensive example.

Also, the Chancellor has finally stopped meddling with SDLT, and has not moved against the private rental sector, specifically the private landlord, who has been squeezed on every side by taxation and regulation. He did give some funding to the worst off tenants, who are very much the bottom of the pile.

The big news around the budget and property will come if and when the Bank of England move that 0.1% base rate a notch or two higher, stifling the Chancellor’s property rhetoric.

If inflation continues to rise, which it will, and the cost of borrowing rises, which it will, taking mortgage repayments with them, a slowing housing market will definitely make all of this talk about 300,000 new homes a year seem like the fantasy it clearly is.

No one will be buying them, because no one will be able to afford them.

Carbon-zero home of the future built by Barratt Developments

Possibly recognising that the canny consumer is going green, Barratt Developments has constructed what they consider to be a zero carbon home. All the usual suspects are in the mix from air source heat pump to the control systems and the utilisation of the latest low carbon building materials.

So-called smart homes and smart cities have very much been at the forefront of the proptech and contech industry. Up to five years ago they were thought to be pipe dreams, now with the global problem of a changing environment caused by, amongst other things, construction.

The present prototype that Barratt has put together with innovators from its base at Salford University are up against a whole raft of key problems though.

Is the actual construction of the property a truly green proposition? And what about the cost?

Special glazing, sophisticated control systems, digital rather than analogue ways. These all consume power, and have built-in longevity, but are also big-ticket items.

It is good to see though that at least one big builder has their mind on the future of property design and the Z House project definitely merits a closer look for those interested in saving the environment.

Though with the average first-time buyer being 38 years of age, maybe these items are a bit too expensive for the Greta Thunberg generation hardwired to save the planet.

Andrew Stanton

CEO & Founder Proptech-PR. Proptech Real Estate Influencer, Executive Editor of Estate Agent Networking. Leading PR consultancy in Proptech & Real Estate. Want to contact me directly regarding one of my articles or maybe you'd like a chat about future articles? Email me via editor@stagingsite.estateagentnetworking.co.uk

You May Also Enjoy

Home and Living

10 Tips for Moving Home

Moving home is an exciting yet challenging experience, requiring careful planning and organization. The moving process can be stressful if not handled properly, from sorting belongings to managing time. These 10 tips aim to make your move smooth and stress-free, helping you easily settle into your new space. 1. Start Planning Early The earlier you…
Read More
Breaking News

A third of UK homes for sale are ‘chain-free’ reports Zoopla

Recent tax changes and incoming council tax premiums for second homes have unsettled property investors and second homeowners with some now looking to sell One week on from the Autumn budget, buyer enquiries for homes that are chain-free are 33 per cent higher compared to those not advertised as chain-free 41 per cent of two…
Read More
Love or Hate Rightmove
Breaking News

Rightmove’s weekly mortgage tracker 06/11/24

The average 5-year fixed mortgage rate is now 4.66%, down from 5.33% a year ago The average 2-year fixed mortgage rate is now 4.92%, down from 5.76% a year ago The average 85% LTV 5-year fixed mortgage rate is now 4.69%, down from 5.40% a year ago The average 60% LTV 5-year fixed mortgage rate is now 4.05%, down from 4.91% a year ago The average monthly mortgage payment on a…
Read More
Overseas Property

Top reasons to consider buying a luxury villa in Phuket Thailand

Those who have worked hard for many years are often looking for ways to invest their cash so that they can enjoy life to the max in their advancing years. Some might decide to dabble in the stock market or insurance policies to enhance their savings, while others might look to purchase something more physical…
Read More
How to add value to your home
Estate Agent Talk

5 Top Tips for Running a Business From Home

Have you ever wanted to start and run your own business from home? Although it’s an incredibly rewarding experience, it can be tough to set up and know where to start, especially if you have no business experience or background! Whether you want to run a small business, or have grand ambitions for eventual expansion,…
Read More
Estate Agent Talk

The Importance of Time Management for Real Estate Investors

Time is one of the most valuable assets for real estate investors, especially when juggling multiple projects, clients, and market trends. Without a strong grip on time management, getting bogged down in tasks that don’t drive growth is easy. You see, every minute spent on admin tasks or low-value activities is a minute that could…
Read More