Latest news from BusinessLive's Commercial Property newsletter
| | | |
| | | | | House prices remain under pressure as subdued market set to continue | | | | | | Developer Persimmon became the latest housebuilder to issue a gloomy update this week, saying the housing market will likely remain "highly uncertain" way into next year. The York based housebuilder saw third quarter completions plummet by 37% compared with last year.
Despite the drop, Persimmon is under way on some 30 new sites which it expects to be ready for sales from spring next year, however. The company's shareholder update came weeks after similar announcements from both Bellway and Barratt Developments, both of which reported drops in forward sales as buyers struggled with higher mortgage rates and the ending of Right to Buy schemes.
This morning's latest Residential Property Monitor from RICS doesn't make for better reading, with results for October showing a subdued market with predictions of this carrying on until the end of 2023. The statistics show house prices remain firmly in negative territory with only a very slight increase on September's readings. And with Bank of England rates staying restrictive, mortgage affordability is set to remain stretched.
So, how to end the cyclical lows? Dominic Collier of RICS said: "The King's Speech earlier this week provided a unique opportunity for the Government to reaffirm its housing agenda. A focus was placed on addressing challenges related to no-fault evictions for renters and re-possession for landlords. Long-term persistent issues surrounding leases will also be addressed.
"However, many questions and challenges remain. More homes need to be built in the right places, and more of them need to be affordable. Existing homes require more support to improve their energy efficiency, to reduce their bills and help tackle our net-zero targets. We will continue to collaborate with the government in addressing these challenges but also these opportunities." Read more | | | |  |
| |
| |  | |
| | | | | Council buys converted factory building to create affordable homes | | | | | | Over in Leicester, the city council has spent £5.55m on a former factory building, which had already been converted into flats, that it now plans to turn into affordable housing.
The council has bought the Zip Building – in Rydal Street, close to De Montfort University and the Leicester Royal Infirmary – under plans originally announced last year. It said the 58 flats and bedsits would help address the "urgent" need for more affordable council housing in the city. Refurbishment of the three-storey former factory, which will provide 58 affordable homes, is under way and the first council tenants are expected to be able to move in next spring.
As well as one bed flats and bedsits, there will be a mix of two-bed flats – including two wheelchair accessible properties – and three and four-bed cluster flats, some of which will provide support to help people with independent living.
Coun Elly Cutkelvin, assistant city mayor for housing, said: "The Right to Buy scheme has hit the supply of council housing hard. We're losing homes much faster that they are being built and it's time the Right to Buy scheme was abandoned. We have been forced to sell thousands of council houses over the past 30 years."That makes it absolutely vital that we invest our Right to Buy cash receipts into schemes like this, which help addressing the critical need for more affordable homes." Read more | | | | | |
| | | |
| | | | Is there something specific you'd like us to write about or just some feedback to share? Send an email to Coreena Ford Don't forget to check our Commercial Property section regularly for our most recent stories and if you've been forwarded this newsletter and want to receive it each week, sign up here to have it delivered direct. |
| | | | | |
| | | | © 2023 a Reach plc subsidiary. All rights reserved
You are receiving this email because you signed up to receive Commercial Property updates from BusinessLive
Please do not reply to this email directly as it is not monitored.
Unsubscribe | Terms of Use | Privacy Policy | Preference Centre
Registered Address: Reach plc, One Canada Square, Canary Wharf, London, E14 5AP. Registered No 00082548. | | | | | | | | | |
