Presentation on theme: "Richard K Bullard - APU1 Richard K Bullard Anglia Polytechnic University THE ENGLISH PROPERTY MARKET SUPPORTED BY THE GOVERNMENT AND PRIVATE SECTOR."— Presentation transcript:
Richard K Bullard - APU1 Richard K Bullard Anglia Polytechnic University THE ENGLISH PROPERTY MARKET SUPPORTED BY THE GOVERNMENT AND PRIVATE SECTOR
Richard K Bullard - APU2 Introduction Factors that control the value of property, land and buildings, are numerous, and provide both positive and negative factors. Property adjoining a motorway or situated in a flood plain will have ‘negative’ factors unless some remedial action is taken.
Richard K Bullard - APU3 Introduction The positive factors are probably more difficult to establish Adjoining farm-land provides an aesthetic appearance and influences value. Can become an industrial area with implementation of unforeseen changes in planning control or even changes in legislation. Result lower values of housing.
Richard K Bullard - APU4 Introduction Increasing changes in employment, from industry to the service sector housing, and property values in former industrial areas have been in decline. Higher unemployment than the national average. Direct impact on property values in former industrial areas and for owner-occupiers this has often led to negative equity. Resultant blight have come social deprivation and an increase in crime.
Richard K Bullard - APU5 Introduction In extreme areas of deprivation with unoccupied housing, abandoned properties have been razed to the ground at the instigation of local government. High rise buildings which are no longer sustainable in the current economic climate and socially unacceptable especially to low income families.
Richard K Bullard - APU6 Introduction Building more housing might be a government solution, the gap between affordability and prices cannot increasingly be met. It raises the question, more specific in England than other parts of Europe; what is housing for, consumption or gain? In England property for most owner-occupier households are seen as the greatest investment that they will ever make. Three choices, for gain, downsize, move, or emigrate
Richard K Bullard - APU7 Government Strategies and Housing Controls imposed by government, both central and local, have a major impact on housing. Government is the customer for 40 per cent of all construction work; regulates development; has a watching brief over the heritage; and has a major influence in providing affordable housing. It provides directly, or with private partnership, the transport network and encourages the creation of sustainable communities.
Richard K Bullard - APU8 Government Strategies and Housing RICS strategy to bring construction alongside property, planning and environmental protection to ensure sufficient influence to protect public policies from the machinery of government.
Richard K Bullard - APU9 Demands for Housing Demand for housing is increasing in the UK for a variety of reasons. Whether demand can be sustained can in part be attributed to the boom or bust situation experienced in the past and likely to occur again
Richard K Bullard - APU10 Housing for Immigrants England has small population growth, but an increasing number of immigrants.who compete with the indigenous numbers. This increase poses a housing demand. They also present a positive and negative economic and social impact on the economy of the country. Not all the immigrants are self sufficient with the appropriate skills to obtain employment. Nor are they able to purchase or rent in the private sector market.
Richard K Bullard - APU11 Housing for Immigrants Many immigrants are political refugees while others are illegal. These people are therefore the ones that create a further demand on the very limited social housing. They directly compete with those citizens within England who are currently homeless or seeking housing to enable them to leave their present unsuitable accommodation
Richard K Bullard - APU12 Housing for Immigrants UK Government wants Britain to become a fairer, more inclusive, mixed society with a greater sense of community. In reality, official statistics show that Britain is becoming more socially polarised, and that housing policy is achieving the opposite of mixed inclusiveness This situation polarises the communities and could lead to the increase in ghetto communities.
Richard K Bullard - APU14 Single Occupancy Housing The singles market, ‘the power of one’, is an issue that the policy makers, house builders, and the surveying profession will have to adjust to. This will apply to housing, especially in the urban areas where singles tend to congregate. Kensington and Chelsea has 48% single person households. Estate agents look for small apartments unsuitable for families. Market has changed. By 2010 singles 40%.
Richard K Bullard - APU15 Single Occupancy Housing The singles market has probably occurred without government intervention or support. Probably the nearest to a free market not requiring subsidies or planning approval. Increases density of population in a given urban area. Puts pressure on the services, demands on the infrastructure, more cars and problem of parking. Conversion of front gardens to parking spaces causes increasing water run-off, overloading the surface drainage, depresses the value of property.
Richard K Bullard - APU16 Affordable Housing The provision of affordable housing can usually only be achieved with government support. Obtained through intervention; direct subsidy, subsidy through planning permissions, and subsidy through permitting changes to land use. Recent change of emphasis from social to affordable housing. s106 obliges private building sector to build a specified percentage of affordable housing.
Richard K Bullard - APU17 Government Subsidy Local government provided many of the houses in the past this situation has changed. Now supporting and subsidising the diminished number of council housing and are providing housing through bed-sits and other forms of temporary housing. Demand, from those unable to afford the price of purchase or the rent, which effects both the indigenous and immigrant population.
Richard K Bullard - APU18 Planning Approval Planning approval through the conventional route, a local government authority, if required to a higher authority, the House of Lords. Situation is changing with the intervention of the ODPM who often overrules the local authority in an attempt to provide more housing. With more than 600,000 vacant no overall shortage of houses, only a shortage of affordable houses in certain regions.
Richard K Bullard - APU20 Changes in Land Use Brown fields includes both land previously used by industry, also residential land. Owner of a property applied to knock down his home so that he could build seven new ones. The house in question was one half of a semi- detached pair. This was a brown field site so technically the development could proceed. The town council disagreed with the proposal, but developers can reapply with a modified plan.
Richard K Bullard - APU21 Property Taxes Valuation Band Range of Property Values at 1 st April 1991 AUp to £40,000 BOver £40,000 and up to £52,000 COver £52,000 and up to £68,000 DOver £68,000 and up to £88,000 EOver £88,000 and up to £120,000 FOver £120,000 and up to £160,000 GOver £160,000 and up to £320,000 HOver £320,000 Braintree District Council – Property Valuation Bands for 1991
Richard K Bullard - APU22 ODPM Running roughshod over the established planning system by adopting sweeping powers in an attempt to provide additional housing. It is stated that Green Belts should be extended while density of housing will be increased and brown-field sites, particularly in the South-East of the UK will used more often.
Richard K Bullard - APU23 ODPM New settlements being foisted upon country areas on the assumption that Prescott’s voters would like to live there in preference to inner city areas. Approach is seen by many as a political rather than a practical strategy for planning policy. Prescott wants to demolish cheap houses in the Northern cities rather than induce them to retain population. Policy is a denial of long-term planning and ignores external costs.
Richard K Bullard - APU24 Environmental Impact of Regeneration Focus of urban regeneration over the last 20 years has changed from property redevelopment, by either the public or private sector, to a broader mix of issues including partnerships. Government’s plan to build 200,000 homes in the South-east will vastly increase emissions of greenhouse gases. Under current development plans housing will accounts for 55% of carbon emissions by 2050, up from the current 30 per cent.
Richard K Bullard - APU26 Buy-to-let With decline in the stock exchange the money market has sought investment in properties. Investment in the buy-to-let market undertaken by the affluent parents of university students. Surplus bedrooms are let, and on graduation, the whole property becomes a buy-to-let. Result fewer houses for family and first time buyers and a rise in property value because of the increased demand.
Richard K Bullard - APU27 Conclusions Greater use made of compulsory purchase powers by local authorities to assemble land for regeneration purposes. Whilst contamination and dereliction can be a problem, there is an even greater need to tackle issues associated with the services provided by utilities.
Richard K Bullard - APU28 Conclusions Local authority plans should always be based on housing need surveys and should specify the type of housing that is needed. Higher density housing options must be explored. They should be located around transport nodes.
Richard K Bullard - APU29 Conclusions Government should seek to achieve better integration of housing, land use, planning, transport and economic development strategies. Shortages of affordable housing in rural areas should be eased by allowing more new housing provided it does not jeopardise the distinctive nature of the rural settlements.
Richard K Bullard - APU30 Conclusions A range of new measures should be considered to reduce the number of empty houses still further.