London housing associations are to receive an extra £200 million from the city’s mayor to ensure they can still subsidise new affordable homes in the capital.
The extra funding is to be used to offset the impact of any uncertainty caused by Brexit.
Mayor Sadiq Khan is offering the finance to housing associations across London but has called on the Government to protect those providers from any negative impact of the UK’s departure from the European Union.
Housing associations use the money they bring in from selling affordable homes to finance those they rent at social or intermediate rent levels.
However, a slowdown in London’s property market, partly prompted by the ongoing uncertainty over Brexit, means some bodies are not making as much money from sales as they had anticipated, meaning they have less to invest in producing new properties.
With little or no income from central government, that scenario is putting pressure on the finances of many housing associations.
The mayor’s deal means associations will be able to take some of the properties they cannot currently sell off the market and switch them to rental properties. With guaranteed rental income, they are then in a position to cement their future construction plans.
Mr Khan said: “At City Hall, we are building record numbers of new social rented and other genuinely affordable homes. That’s why it is right we push our funding to its very limit to keep housing associations building more affordable housing through the ongoing uncertainty.
“Whatever happens with Brexit, Ministers must at the very least match my support and ensure we can keep building the homes Londoners need over the coming years.”
Topping the list is Barking and Dagenham in east London, according to analysis of the sold prices for property recorded by the Office for National Statistics.
The east London borough is the cheapest in the capital with its property up to a third cheaper than other boroughs. The average price there is £300,518, up 4 percent on the year. This district is also expected to be boosted by another 11,000 new homes created on the Olympic legacy sites.
At No.2 on the most affordable list is Bexley in south-east London, with average property prices of £341,784, up 1.8 percent on the year. The town will benefit when a Crossrail station eventually opens and directly connects the area with the centre of the city.
Newham, again in east London, takes the third spot on the most affordable list, followed by Croydon in fourth place. Newham’s average property price is £365,182 (down 0.8 percent), while Croydon’s is £365,931 (down 2.6 percent).
The rest of the top 10 is: 5. Havering, average property price, £375,014 (down 2.1 percent); 6. Sutton, average property price £382,607 (up 0.3 percent); 7. Hounslow, average property price £395,734 (down 0.4 percent); 8. Enfield, average property price £396,908 (down 0.5 percent); 9. Hillingdon, average property price £399,639 (down 4.5 percent); 10. Greenwich, average property price £411,492 (up 2.9 percent).
The downturn in the retail sector could mean a boost to London’s housing stock. Landsec, which owns and manages a large number of offices, retail and leisure facilities in the capital, is to build more than 4,000 homes on some of its sites.
The property giant is to submit planning applications for schemes at Finchley Road and Shepherd’s Bush that would include 1,700 homes. There are further plans to add residential property to its site in Lewisham, which includes a shopping centre.
The Lewisham development would create a new town centre in the south London borough.
Landsec chief executive Robert Noel said: “We are exploring the potential at other locations in London.”
There is increased demand from home buyers for property in London and across the UK. At the same time much of the retail property sector is contracting.
Last month the Chancellor Philip Hammond addressed that situation in his Budget, announcing relaxation of planning regulations that will allow easier conversions of retail and commercial units into domestic residences.
The move by Landsec to build homes on their retail sites reflects the direction of travel for that type of land.
The possibility for modular housing to help resolve the crisis of a lack of housing supply in the UK will be at the centre of a three-month exhibition in London.
The exhibition has been put together by New London Architecture (NLA), an independent forum for discussion, debate and information about architecture and construction in London. Accompanying that exhibition, which opens on October 9, is a series of events looking at how factory-made housing could benefit the capital.
NLA research has looked at how factory-made housing could revolutionise attitudes, processes and delivery to provide quality housing in London.
Experts in the field of modular housing manufacturing will discuss new and innovative models of design, construction and delivery at a number of events over the next three months. The exhibition itself is in the NLA galleries at the Building Centre in Store Street, central London, until January.
Meanwhile, Birmingham City Council is to launch a pilot scheme to deliver 50 homes that have been manufactured off-site.
The housing scheme will be built using both modular and volumetric solutions – volumetric building involves stacking and joining factory-built modules on site, while modular homes are often completed in a factory setting before being moved to their permanent site.
Birmingham Municipal Trust, which is owned by the council, is to trial this project before a bigger programme of modular homes is rolled out in 2020. Work is expected to start in the spring with contractors invited to tender to build one of five pre-designed homes.
Modular homes are factory built using precision engineering. An entire home can be completed in weeks compared to the months required for traditional construction. Financial giant Legal & General, which is investing in a variety of housing programmes, has established a factory at Selby, near Leeds, with the capacity to build up to 3,000 modular homes every year.
Up to half of the properties in a new 3,000-home development in east London will be genuinely affordable. The redevelopment of the former Ford site in south Dagenham was given the go-ahead by City Hall last month.
And Jules Pipe, the deputy mayor for planning, regeneration and skills, confirmed permission for the site to be developed hinged on the developers, L&Q and Countryside, upping the number of affordable homes from 35 percent to 50 percent.
The site at Beam Park was once an assembly site for the car giant. Its future includes a new neighbourhood and railway station, two primary schools, a nursery, community facilities, retail and open spaces alongside 5,000 homes.
Beam Park is within the London Riverside Opportunity Area where up to 26,500 new homes and 16,000 new jobs are predicted to be delivered over the next decade.
As the site straddles two boroughs – Barking and Dagenham, and Havering – both had to agree to give planning permission. Barking and Dagenham gave the project the thumbs up, but Havering rejected the plan over concerns about the height of the proposed new buildings.
That meant City Hall “called in” the decision on whether the project would be given the go-ahead.
Mr Pipe said: “This is a large, very important site, and these plans will deliver 3,000 much-needed new homes, along with transport, schools and community facilities to help make this a liveable and attractive new neighbourhood for this part of east London.
“Having weighed up the evidence available to me and given the overall importance of the application, I have decided to grant approval.
“The wider area around Beam Park has the potential to deliver thousands of new homes and jobs, and could play a crucial role in London’s economy in the decades to come.”
Driverless cars could free up enough space in London to build an extraordinary 180,000 new homes, according to a major new report.
Arcadis, a consultancy that looks at the built environment, says 15,500 acres of land in the capital would be released for other uses once more connected and autonomous vehicles (CAV) – driverless cars – are on the streets of the capital.
In its report, Citizens in Motion, Arcadis forecasts what’s ahead for 14 world cities, including London, when driverless vehicles become commonplace. In London, where there is both a growing population (predicted to grow by a 0.7 every year) and a diminishing housing supply, Arcadis says more than half of all households (54 percent) have at least one vehicle.
With a vast amount of space dedicated to providing parking for those vehicles and the many that commute into London daily, Arcadis suggests driverless vehicles could instead reduce or replace private cars and reduce congestion.
At the moment, there are 27.1 million passenger trips by vehicle every day in London, and more than 4 million people regularly use ride-sharing apps to get around. Removing private vehicles and the car parking areas needed to service them would theoretically create more places for residential development.
Meanwhile, CAV is being tested in Greenwich as part of a trial led by the Transport Research Laboratory and the Government.
Peter Hogg, UK Cities director at Arcadis, said: “As London moves towards mega city status by 2040, mobility challenges will be ever present. How the city embraces CAV will be a key fork in the road, that will either enhance or frustrate city performance.”
Arcadis concludes that London’s mobility objectives should be: Transform London’s streets; improve public transport; create opportunities for new homes and jobs through encouraging more people to walk, cycle and use public transport by 2041.
The Law Commission is proposing a radical shake-up of the leasehold property system in England and Wales, describing the current system as “complex, slow and expensive”.
Launching a consultation paper on its proposals, Leasehold home ownership: buying your freehold or extending your lease, the commission is asking the public to add their voice to the conversation to ensure both freeholders and leaseholders are represented.
With an estimated 4.2 million leasehold properties in England, the majority of which are flats, leasehold is a thorny subject for millions of homeowners.
In leasehold, the homeowner only owns the property itself and not the land on which it stands. The freeholder retains ownership of the land and leases the land to the homeowner for a specific period of time, usually decades. When the lease is close to expiring, some property owners have faced charges of thousands of pounds for renewal.
The cost of buying out the freehold is also seen as prohibitive while also being a legal minefield. More than 50 Acts of Parliament govern leasehold, and the process of extending a lease or buying freehold is known as enfranchisement.
Law Commissioner Professor Nick Hopkins said: “The current system is complex, slow and expensive, and it’s failing homeowners. Many feel they are having to pay twice to own their home.
“Our proposals would make it easier and cheaper to buy the freehold or extend the lease of their home, ensuring the system works for ordinary homeowners across the country.
“We want to hear views from across the spectrum on how this complicated area of law can be improved.”
The Law Commission now proposes:
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New moves are underway to speed up the construction of new homes on public land in London. The London Development Plan (LDP) brings together developers, housing associations and contractors who will work with boroughs and planning authorities to accelerate house building on land they own.
Three car parking sites in the borough of Harrow at Canons Park, Rayners Lane and Stanmore are among the first sites to be identified for the LDP. Owned by Transport for London (TfL), these sites will be developed to provide 100 percent affordable housing for Londoners, delivered in a much quicker timeframe.
The NHS has also sold the site of St Ann’s Hospital in Haringey to City Hall, with plans for the site to be the centre of a residential development offering at least 50 percent genuinely affordable housing.
In the north of the capital, Enfield Council will deliver up to 725 new homes as part of Meridian One, a major development pushed through by LDP. Meridian One will include the Meridian Water station and 25,000 square feet of commercial space and leisure facilities, and at least 35 percent of the homes provided will be affordable.
The LDP is the latest part of the Mayor of London’s aim to deliver 65,000 new homes every year in the capital. Mayor Sadiq Khan believes freeing up publicly owned land can be the key to delivering on that promise.
James Murray, deputy mayor for housing and residential development, said: “Public land has a vital role to play in tackling the housing crisis, and the new London Development Panel offers public land owners a quicker and more efficient way to bring their sites forward.
“We want to see it playing an important role in building the homes Londoners so desperately need.”
Londoners spend the shortest amount of time renting a place before they buy their own home. According to new research, the average Londoner expects to spend around 12 years living in a rented home.
Across the whole of the UK, the average time expected to rent before buying is 15 years and two months.
More than 2,000 adults were quizzed by Opinium on behalf of landlord insurer Direct Line for Business.
The research, which revealed that, unsurprisingly, London has the highest proportion of renters of anywhere in the UK, its 2.7 million tenants making up a sixth of all renters in the UK.
Renters revealed that affordability is the main reason they stick with renting – in 2017, the UK’s first-time buyers paid on average £207,693 for their first property, more than twice the average price paid five years earlier of £138,663. That’s an increase of almost £70,000 or around £1,150 a month in five years.
Christina Dimitrov, business manager at Direct Line for Business, said: “The UK housing market continues to change, and we are seeing a major attitudinal shift when it comes to renting.”