Proposed bonfire of building planning regulations – for good or bad

The government is proposing to relax rules on building planning regulations so the number of new homes being built can be accelerated in the biggest shake-up of the system for 70 years.

The Prime Minister has opted to put home ownership at the centre of promises made at the election to even up the perceived imbalances between the North & South of the country. To do that a new planning bill is due before Parliament during this session, which will make it easier for developers to seek and have planning permission granted to build new homes.

The planning bill, which was included in this year’s Queen’s Speech, will aim to improve the chances of property ownership across the country and in particular in areas where the Conservative government won seats from Labour at the General Election.

The plans are controversial and include proposals to scrap Section 106 agreements, which are agreements between developers and local planning authorities about measures that developers must take to reduce the impact of their developments on the community. These are considered as making it too easy for residents and local authorities to block developments.

Other measures outlined include forcing councils to zone swathes of land on three criteria – growth, protection or renewal. The land zoned for growth would benefit from automatic outline planning permission, with councils unable to turn down applications that accord with local rules.

The government has confirmed its determination to push ahead with the full package of reforms, despite the understandable backlash from environmental groups who feel that local residents’ misgivings and local councils will be powerless to stop or amend unsuitable developments.

However, the quality of much current new build property has been called into question, which, if allowed to continue, could derail the goal of providing the volume of homes required and built to the right standards. Over 97% of new home buyers reported snagging problems or defects to their builders last year, according to a recent national new home customer satisfaction survey. It is clear that work needs to be done to hold builders to stricter rules of quality control in order to meet the expectations of buyers and also help the government meet its green target of better insulated and energy efficient homes.
Looking for a Brighton Mortgage broker – Click here
For information in SDLT click here

Buyer demand for property continues to outstrip available supply

No one can have failed to notice the rise in house prices and the Buyer demand for property, particularly since the lockdown eased. Reports from the Royal Institution of Chartered Surveyors (RICS) tell us that the number of properties being put up for sale is not keeping up with the increased demand.

According to RICS the predominant requirement from prospective buyers is for property with more internal and external space, an understandable reaction to the lockdowns which have seen urban dwellers, especially, suffering from the effects of being cooped up for long periods of time.

The recognition by most of us of how badly we need to have access to space for our own mental health and that of our families has been brought into focus during this pandemic and, for those of us with the means, looking for alternative accommodation promising a better lifestyle has been a major factor in the surge in demand.

The other main reason has been the suspension of stamp duty land tax (SDLT) on property valued at £500,000 or less, which has proved to be a massive incentive by cutting the costs on a £500,000 property by £15,000. If you purchase a residential property in England between 1^st July 2021 and 30^th September 2021, inclusive, you will start to pay Stamp Duty Land Tax on the amount that you pay for the property above £250,000.

On the 1^st October, the SDLT rates revert to their original pre-covid levels.

The demand for properties has also given rise to other issues for estate agents and sellers. While properties are selling almost before the property details are put up on agents’ websites, the numbers of prospective buyers are overwhelming agents’ abilities to cope with organising viewings. It has been reported that some agencies are asking for written proof of a potential buyer’s ability to purchase before they will allow a property to be viewed.

While it is understandable to try and weed out the ‘sightseers’ who only want to look and have no intention of buying, the ways that estate agents can use to do this need to be scrutinised. Unconfirmed reports of one agent charging £5 upfront in cash to view a property looks very suspect. Other accounts of an upfront fee being levied by agents which is non-refundable if the prospective buyer does not show up, illustrate just how overheated the market has become. We would urge caution if any kind of fee is requested by an agent as a condition of seeing a property. In addition, be extremely careful in providing any personal financial details to agents before seeing a property. Without a clear demonstration of how your data is used and securely held, it might be better to look elsewhere.
Looking for a Brighton Mortgage broker – Click here
For information in SDLT click here