This article explains recent market analysis by estate agent comparison site shows that the average homebuyer in England is now £37,156 worse off thanks to the stamp duty holiday, with the average house price climbing by 14.8% across the nation since it launched in July of last year. This analysis came after the government released the September UK House Price Index, giving us the first concrete view of the market in September of this year when the stamp duty holiday ended.

Read the article here.

The Dispute Service (a non-profit company that handles disputes over tenancy deposits) has been selected as the New Homes Ombudsman, following a "fiercely competitive tendering process". This was announced by the New Homes Quality Board (NHQB) here. It explains:
"The New Homes Ombudsman Service will come on line in the New Year. Buyers of new build homes who are unhappy with their new home, or frustrated with the performance of the developer in handling their complaint will be able to ask the New Homes Ombudsman to review their case. The New Homes Ombudsman Service will independently consider customers’ cases and rule whether there has been a breach of the New Homes Quality Code".
Read the announcement here.

A report published by the BRE has found that poor housing is costing the NHS £1.4bn a year. The biggest expense can be attributed to defects in poor homes which expose residents to excess cold, while the second biggest cost to the NHS comes from hazards that cause people to fall and injure themselves, predominantly on staircases. Preventing falls on staircases by installing or fixing handrails or balustrades could save the NHS £219million a year in treatment costs (after the six year payback period).

With these figures in mind, it highlights the importance of surveyors noting any trip hazards in a property and the benefits of handrails and balustrades on staircases, particularly for vulnerable and elderly clients, as well as families with young children.

Read the article on the report here.

You may also find our article on The Fitness for Human Habitation Bill interesting here.  

September saw a small increase in construction output of 1.3%, as the industry shows small signs of a post-pandemic recovery. This comes after a fall in output for the period Jul-Sep 2021 of 1.5%, although this was following four previous consecutive quarterly rises. The ONS also reported that “The annual rate of construction output price growth was 5.1% in September 2021; this was the strongest annual rate of construction output price growth since records began in 2014…. At the type of work level, the annual rate of price growth in the 12 months to September 2021 was at its strongest in new housing (7.5%)…” You’ll find the construction indices here.

Yesterday the government shared plans to drive down the cost of clean heat and incentivise people to install low carbon heating. From next April, households will be able to benefit from a £5,000 grant (as part of a £450 million Boiler Upgrade Scheme), to upgrade their fossil fuel boiler to a low carbon heating system such as a heat pump. Therefore, people choosing to install a heat pump will pay a similar amount to if they were installing a traditional gas boiler.

This press release states:
"No-one will be forced to remove their existing fossil fuel boilers, with this transition of the next 14 years seeing the UK’s households gradually move away from fossil fuel boilers in an affordable, practical and fair way, enabling homeowners to easily make these green choices when the time comes to replace their old boiler.

"The Heat and Buildings Strategy sets out how we are taking ‘no-regrets’ action now, particularly on heat pumps, whilst supporting ongoing trials and other research and innovation on our future heating systems, including on hydrogen. We will make a decision on the potential role for hydrogen in heating buildings by 2026, by learning from our Hydrogen Village pilot. Heat pump technology will play a key role in all scenarios, so for those who want to install them now, we are supporting them to do so."

Read more about the plans recently announced here.

SDL Property Auctions and Rightmove are joining forces to normalise property auctions, making them more accessible for everyone. In this article, Andrew Parker, Managing Director and Auctioneer at SDL Property Auctions, explains: "House-hunters on Rightmove can already filter their search to find auction properties. Now lots being sold by SDL Property Auctions will be displayed with live bidding updates and the option to register to bid. This innovation by Rightmove is a major step in increasing awareness of auctions, both for private homeowners and for estate agents, and will encourage more of them to consider buying and selling in this way."

Andrew Parker explains that SDL Property Auctions have been working hard with Rightmove and other auction partners to educate buyers and sellers and create transparency in the process.

Read more here.

The Green Finance Institute has published a 'Lender's handbook on green home retrofit and technologies'. Although aimed predominantly at lenders, it is a clear, comprehensive and relevant guide for anyone in the industry. The Handbook offers users a snapshot of each technology, including the current costs, carbon savings and benefits, as well as profiling the main funding options, quality assurances and guarantees to protect customers.

Emma Harvey, programme director at the Green Finance Institute says: “By providing financial institutions with the latest information on the costs, risks and benefits of green home technologies, the Handbook informs and empowers the finance sector to fund retrofit projects and develop new financial solutions to support their customers’ net-zero ambitions,”.

Download the Handbook here.

Read the Press Release here.

In the valuation sector, the use of the term ‘down-valuation’ can be a contentious one. This blog post written by former mortgage professional James Chidgey explains how a recent report said that "an estimated 390,285 UK homes had been down-valued by surveyors from those sold in the 12 months to April 2021".  This number makes up 43% of all UK house sales found in the data reviewed, so it is not an insignificant number. The term 'valuation' can be misused by those who incorrectly refer to the asking price as the valuation and James Chidgey provides us with an interesting insight into the issue, read more here

If you found this story of interest, you may also find our article on down valuations written by Chris Rispin FRICS useful:

Propertymark, the membership body for property professionals, recently found in a straw poll that 67% out of the 91 agent respondents have witnessed cannabis farms growing within properties they’ve managed. This article from property industry eye describes instances where agents have found cannabis farms in rental properties, and the steps some criminals are taking to avoid detection. Read more here.

If you found this article interesting, you may also be interested in our article written by Chris Moran on cannabis cultivations on Sava EDGE here:

Barclays Head of Real Estate, Jason Constable, reports that Barclays wants to grow their support for new housing development by increasing lending activity in this sector to both existing and new clients. This article touches on their interest in funding for 'build to rent' schemes, as well as 'build to sell', as the build to rent sector is "particularly hot at present".

Jason says: "Supporting the provision of affordable housing is an important part of our residential lending business as we continue to support the UK government’s policy to increase the amount of affordable housing, which calls for 300,000 new homes to be built every year.

"We want to play our part in helping to solve the housing crisis by supporting the delivery of more affordable home schemes across the UK that can get people on the property ladder sooner rather than later."
Read more here.

The Centre for Ageing Better, a charitable foundation, commissioned an evidence-based analysis of England's housing policies to determine the causes of, and solutions to, the poor quality of so many homes. The Good Homes Inquiry, published this month, was chaired by David Orr CBE and provide a series of recommendations. Here is a summary of the recommendations within the report:

Read the report here.

Yesterday's government reshuffle has seen Robert Jenrick lose his role as Secretary of State for Housing, Communities and Local Government. His replacement is Michael Gove MP. An article from Building provides an overview of Michael Gove's views on housing, planning and the environment based on his past relationship with housing. Read more here.

Countryside Properties is the latest housebuilder to scrap "unfair" ground rent terms for leasehold properties in their contracts following an investigation by the Competition and Markets Authority. Countryside will keep rents the same level as when leaseholders first bought their property. In June, housebuilder Persimmon confirmed they would offer leaseholders the option to buy the freehold of their property at a discount. Aviva, the insurance company which buys leaseholds from the housebuilders, agreed to repay homeowners who saw their ground rent double.
Read the latest on this story here.

An unusual scheme to turn a listed 1939 WWII bunker in Dorset into a holiday let has received planning permission and listed building consent. Architects Lipton Plant plan to 'blast' a new opening into the elevation to reveal the views of the Jurassic Coast, as well as enlarged rooflights.  The interior conrete walls will remain as they are. The intention is to "celebrate the significant historic yet redundant structure as a historic ruin".
Read more here..

Insurance company LV = General Insurance  has found that 51% of homeowners do not know the signs of subsidence. Their research found that 71% of people knew that large cracks were a sign, but only 25% knew that tears in wallpaper (with no sign of damp) were a sign.

The research also looked at what homeowners did when they spotted signs of subsidence and found that whilst 51% would phone their insurer, 26% didn't do anything at all, and only 22% would instruct a building surveyor to carry out an inspection.

Interestingly, 53% of homeowners do not know if subsidence damage would even be covered by their buildings insurance policy.

Read the article from Property Week here.

Rightmove has reported a 120% increase in tenants searching for pet-friendly rental homes since last year. Given that the total tenant demand was only up by 13%, this is a significant increase. More than a third of UK households have become pet owners since the first lockdown in March 2020 so, it will be interesting to see how this affects the market going forward. 

Tim Bannister, property expert at Rightmove, says: “Becoming a pet owner is a long-term commitment, so what’s really interesting to consider is the impact this could have on the rental market in the future, and it’s a signal to landlords that if they were to consider allowing a well-behaved pet then it may open them up to a bigger pool of potential tenants.”

Read the full story here

The latest Technical Bulletin for residential surveyors is now available here. To download and view the full bulletin, you will need to be logged in to Sava EDGE. If you are not already logged in, please click here to log in. If you do not yet have an account, please click here to register. This issue of the bulletin includes articles on the following: 

The valuation of leasehold property for secured lending
The RICS recently published a new guidance note: “Valuation of Residential Leasehold Properties for Secured Lending Purposes”. This guidance note, which covers England and Wales, is effective from 1 July 2021. In this article, we look at this new publication and discuss some of the implications for valuers undertaking secured lending valuations. Read the article here.

Asbestos pipe insulation
In this article, Asbestos Surveyor, Callum Skene, explains the main three types of asbestos-containing pipe insulation and reminds us of the requirements for safe removal. He then explores some of the legal implications of asbestos in the context of residential property. Read the article here.

Heat loss in dwellings
With the effects of climate change becoming more prevalent and legislation adapting to reflect it, we thought it would be useful to cover the key principles of heat loss in dwellings, and how quality can impact performance. Read the article here.

Buildings Science: How materials recover after a flood or other water damage
People often assume that the recovery time of buildings affected by an escape of water or flood is mainly dependent upon the duration of the flood event. The reality is, however, that the duration of the event often has less influence on the recovery and the main factors are related to the method of construction, material composition, barriers to drying and chosen drying techniques. In this article, Russell Rafton shares with us the results of an experiment he carried out to demonstrate how materials recover after a flood or water damage. Read the article here.

The Green Jobs Taskforce was launched by the Government on 12 November 2020 to set the direction for the job market as we transition to a high-skill, low carbon economy. Last month the Taskforce published its first report. This set out the priorities to create the skills and jobs to achieve our net-zero ambitions.

The Green Jobs Taskforce was launched by the Government on 12 November 2020 to set the direction for the job market as we transition to a high-skill, low carbon economy. Last month the Taskforce published its first report. This set out the priorities to create the skills and jobs to achieve our net-zero ambitions. You can read the report from the Taskforce here.

Sava's Managing Director, Austin Baggett, provided an analysis of the report here.

The government believes the way in which the existing housebuilding market operates constrains the supply of new homes because there is not enough competition and innovation, a lack of consumer choice and a lack of diversity of supply. It believes self-build and custom housebuilding has a role in to play in increasing consumer choice and ensuring people can live in the homes that they want, and that are designed to meet their needs. To this end, Richard Bacon MP was tasked to develop a plan for a major scaling-up of self-build and custom housebuilding. He reported his findings at the beginning of August. In brief, his recommendations are:

  1. A greater role for Homes England, including a dedicated team for custom and self build, 
  2. Raise awareness and show by ‘doing’, 
  3. Support community, diversity and levelling up, 
  4. Promote greener homes and increased use of Modern Methods of Construction (MMC),
  5. Align custom and self build changes with planning reforms, and
  6. Iron out tax issues around the model.

You can read a summary here or you can read the full report here.

Social housing providers have the chance to bid for a share of a £160 million cash injection through the government's "Social Housing Decarbonisation fund" to make major energy-efficient improvements to their housing stock. This is part of the wider £9 billion commitment to increase the energy efficiency of homes, schools and hospitals – driving forward the Prime Minister’s 10 Point Plan for a green industrial revolution.

The press release states: "In total, through this first wave of funding, up to 38,000 of the UK’s worst energy-performing social housing properties – with energy performance certificate (EPC) ratings of D or below – will have the chance to receive vital energy efficiency upgrades, including installation of insulation and more energy efficient doors, windows and heating systems."

Read more here.

As expected, there has been a slight slow down in property sales activity following the recent phasing out of the stamp duty holiday according to the RICS UK Residential Market Survey. The supply of new properties coming to market continues to slow and has reached its lowest level since April 2020, the most affected areas are Yorkshire & the Humber, the East Midlands, and East Anglia. However, prices are still going up and this trend is apparent across the whole of the UK. Demand for rented accommodation is still on the rise and a lack of landlord instructions is adding acute pressure to this area of the market. The RICS Residential Market Survey is a monthly sentiment survey of Chartered Surveyors who operate in the residential sales and lettings markets and you can read the full report here.

UK business leaders have called upon the government to develop a national retrofit strategy to deal with inefficient homes as a matter of urgency, or risk failure to meet the 2050 net-zero emissions target. As the residential sector accounted for just over 20% of carbon dioxide emissions in 2020*,  the likes of Nationwide, Eon, British Gas, Legal & General’s modular homes, Midas Group and the Federation of Master Builders are pushing the government into action to dramatically reduce this. Claire Tracey, chief strategy and sustainability officer at Nationwide Building Society said the government needs to “create a national retrofitting strategy that ensures the UK’s Paris Agreement commitments can be met. Anything less and we risk not only missing our climate targets, but also missing an opportunity to achieve higher-quality housing, lower energy bills, and new green jobs for the whole of the UK.” The Green Homes Grant voucher scheme was criticised for being cancelled by the government this year and further referencing previous scrapped or revised programmes, Noble Francis, economics director of the Construction Products Association said that future schemes must have time to “build up momentum so that households have faith in the scheme and see the benefits of it”. He also added that companies in the supply chain need time “to make major investments in new capacity”. The UK business department pointed out that 40% of homes now have an EPC rating of B or C, compared to 9% just over a decade ago. Read more here.


It has been widely reported that house prices have been steadily increasing, with an average rise of over 10% in the last year alone. However, the rate of earnings growth has been much lower at around just 2% and this has significantly impacted affordability for many UK city areas. To give some perspective to this gap, it equates to a price to earnings (PE) ratio of 8.1, in simple terms, this means that an average UK city home costs over eight times the average salary. This gap has been growing wider for some time and 10 years ago, the average house cost 5.6 times more than the average salary. The least affordable UK city is now Winchester, with homes costing 14 times the average salary, and conversely, Londonderry (N Ireland) is the most affordable, having a PE ratio of 4.7. This is closely followed by Carlisle and Bradford with a ratio of 4.8. To add some context, the average house price in Winchester is £630,432 and in Londonderry it is £155,917. Across the UK, the average house price is £327,691 and the average salary is £38,600.
Read more from Lloyds Banking Group here.

Property sales are proving more successful than ever recorded in the past 10 years, according to a report by Rightmove. By tracking a huge 13 million property sales journeys, their research discovered that overall, almost 70% of sellers found a buyer between June 2020 and June 2021, which is the highest recorded in a decade. Hot spots include Falkirk and East Dunbartonshire in Scotland achieving over 90% of successful sales, closely followed by Sheffield in South Yorkshire, also Craven in North Yorkshire and Chorley in Lancashire achieving over 80% of sales. King’s Lynn in Norfolk and Bexley in Greater London sit at the bottom of the league table at 74%. Buyers are feeling less restricted by location due to work commitments and are looking further afield for space and the work/life balance. Read more here.

Prior to the first national lockdown, RPSA ran some informal "Meet & Greet" sessions to enable people to network and talk about surveying. now that restrictions have been eased, RPSA has scheduled some Meet & Greets over the coming months. We thought we would share these dates with our readers should anyone be interested. The invitation is open to anyone, whether they are an RPSA member or not, qualified surveyors, students, prospective students. It may be a useful opportunity for students to meet up with other surveyors and possibly try and find mentoring/shadowing opportunities.

Details of the events are available at and RPSA ask people wishing to attend to email so they can ensure numbers are managed. The events organised so far are:

Wednesday 18th August Milton Keynes
Holiday Inn Express next door

Wednesday 15th September Exeter
Premier Inn and HI Express next door

Wednesday 13th October Warrington
Stay in Manchester for CABE Conference

Halifax has published data for July which shows house prices rose by 0.4%, with the average house price currently £261,221, an increase of £1,122 on June's data. The average price is more than £18,500 higher than a year ago.
Managing Director of Halifax, Russell Galley, said:
"Latest industry figures show instructions for sale are falling and estate agents are experiencing a drop in their available stock. This general lack of supply should help to support prices in the near-term, as will the exceptionally low cost of borrowing and continued strong customer demand.  “Although there remains some uncertainty over the impact on employment from the unwinding of government support schemes, on balance the risks to the macro-environment are receding, with consumer confidence improving, the labour market recovering, and the economy expanding as restrictions are lifted. Overall, assuming a continuation of recent economic trends, we expect the housing market to remain solid over the next few months, with annual price growth continuing to slow but remaining well into positive territory by the end of the year.”
Click here to read the report.

Following an investigation by CMA (the Competition and Markets Authority), housebuilder Persimmon will now allow leaseholders to buy the freehold of their property at a discount. In addition, Aviva, the insurance company which buys leaseholds from the housebuilders, will repay homeowners who saw their ground rent double. Campaigners have described this commitment as a "massive milestone" in this article, and it is hoped that other developers will follow.

Read the press release from CMA here.

Mortgage lending reached a record-breaking £35.6 billion in March of this year, the highest level since 1993 when the Bank of England records began. The number of remortgages approved in March 2021 stood at just under 35,000, whereas new mortgage approvals reached 82,700, 13% higher than the previous year. The mortgage market clearly responded to demand, with 200 products available for buyers with a 5% deposit and 500 deals for anyone with a 10% deposit. For existing homeowners, there is now a choice of over 4,000 mortgage deals to choose from, up 50% from the previous year. Yet these numbers appear to belie the fact that around 80% of mortgage applications from first-time buyers fail to get approved due to reasons such as poor credit history, insufficient deposit, not being on the electoral register, or not having a regular income. With overall product choice increasing nearly across the board, it would seem a strong property market has boosted confidence in lending.

Read more here.

The G7 summit took place on 11th-13th June to tackle amongst other things, global challenges and to support a sustainable recovery from the pandemic. Pledging to build back better from coronavirus and create a greener, more prosperous future, prime minister Boris Johnson said “…as G7, we are united in our vision for a cleaner, greener world, a solution to the problems of climate change…” The G7 leaders gathered together in the very picturesque Carbis Bay in Cornwall, attracting a great deal of media attention across the world and we hope that the discussions lead to some real positive action. This media attention also piqued the interest of house hunters as Rightmove reported a massive 103% increase in searches in the Carbis Bay area for 9th June compared to the day before. The average asking price in the Carbis Bay area is £384,000, some £50,000 higher than the average for Cornwall. There has been a trend for house hunters to start searching for more greener areas, more spacious homes and a better work-life balance, thanks to the pandemic and as such, Cornwall became the most searched for place on Rightmove in February this year.

Read more here.

This article from the Property Reporter suggests there are early signs the property market is beginning to cool according to new data from Rightmove. This month saw a 0.8% increase in property prices, lower than the 1.8% increase in May and the 2.1% increase in April. However, it remains the largest rise at this time of year since 2015.

Tim Bannister, Rightmove’s Director of Property Data, says: “Buyer demand remains very strong, though, with an all-time low in the number of properties available for sale on estate agents’ books and new stock at higher than ever average prices, there are early signs of a slowing in the frenetic pace.

"Since the market re-opened last May in England we have seen huge jumps in the numbers of sales being agreed, but these are now rising at a slower pace. Record low-interest rates and stamp duty tax reliefs have helped many to afford higher prices, satisfying their pent-up desires for a new home fit for a new era. Some of that demand has now been met, and the phasing out of stamp duty reliefs has also taken away some of the urgency to move, though our high traffic and search data indicate that there is still strong buyer demand.

"However, higher prices combined with a lack of fresh choice coming to market are reducing some buyers’ ability or desire to move, and while we expect the market to remain robust, there are early signs of a slackening in the incredible pace of activity that we’ve seen over the last year. This super-charged activity cannot go on forever, but we expect the market to remain vigorous for at least the remainder of the year.”

Read more here.

New government proposals suggest that there should be a limit of 18 months from when planning permission was granted for building developers to progress with work (to the satisfaction of the local planning authority), otherwise planning permission may be revoked. The Housing, Communities and Local Government Committee published The future of the planning system in England First Report on 10 June 2021.

Some industry-leading professionals agree that speeding up rates of home building will help to achieve the government target of 300,000 new homes a year, others are concerned it may cause a bottleneck in the industry. Simon Das of 978 Finance, said: “These proposals are simply a kick in the teeth for our house building clients. Instead of putting the onus on developers, the government should concentrate on reforming the antiquated and protracted planning process. The planning system itself and local opposition remain the main obstacles to new homes being built. We see developers waiting up to 18 months for planning approval, then having to reschedule their builds until they can bring in new contractors often due to delays on discharge of relatively simple pre-commencement conditions. Equally, in the current climate developers are struggling with the procurement of building materials with costs spiralling over the last year. Clearly, the last thing we want are house builders rushing or cutting corners, this will directly impact on profitability and ultimately build quality. Burdening developers with increasing penalties will only lead to a bottleneck situation, and if not handled carefully, be entirely counterproductive to the industry at large. Such proposals hardly bolster the entrepreneurial spirit or encourage the formation of new SME’s vital for attaining the build figures promised in the Conservative manifesto. An added layer of bureaucracy is surely not what is needed for post covid economic recovery”.
Read more here.

For the first time in six years, it is now cheaper to rent than to buy a property in nearly all UK locations. In early 2020 it would have been cheaper to get a mortgage than to rent throughout the whole of the UK. This is despite the cost of renting a home rising by over 7% in the period May 2020 to May 2021. In March 2020, someone with a 10% deposit would have been better off by £102 per month if they bought rather than rented. However, it was found that last month the average private-sector tenant was spending £71 a month less in rent. Currently, the biggest saving can be seen in the Greater London area, being £251 cheaper to rent than buying. 

Aneisha Beveridge, Hamptons' head of research said "A year ago, lenders were either increasing their rates or withdrawing higher loan-to-value mortgages altogether…For first-time buyers in particular this pushed up the cost of paying a mortgage, if they could get one at all, to well above the cost of renting." Although reducing mortgage rates will be offset by increasing house prices, Ms Beveridge still believes the trend will eventually be reversed during 2022.

Read more here.

This month saw the launch of the government’s First Homes scheme offering between 30% and 50% discounts for local first-time buyers and key workers in England. To be eligible, purchasers must be first time buyers, have an income of less than £80,000 pa (£90,000 in London) and have a particular key worker occupation, such as NHS staff, or be local to the area, although key workers will be a priority. Initially launched in Bolsover, Derbyshire, a further 1,500 sites are planned later in the year. What is different about this scheme is that the discount remains with the property, so the home will only be sold on to people eligible for the scheme and the discount received at the first point of sale will be passed on to future purchasers. Housing secretary, Robert Jenrick said: “These homes will be locked in for perpetuity to first-time buyers and key workers from their local area – making them an asset to both their owners and the wider local community.”

Read more here.

House prices have increased at their fastest rate in over 10 years, according to a recent report by the BBC.  In 2012 the average UK house price was a little under £165,000, almost a decade later that’s risen to £256,405 thanks to a sharp spike in prices since 2020 and the considerable amount of post-lockdown interest. The highest price rises are seen outside of the Capital as people look for a home to achieve a work/life balance. Whilst huge interest in the market has resulted in the proportion of houses available for sale dropping, the number of flats that are available, conversely, has slightly increased. The cladding crisis will have clearly played its part. With stories of people queuing up at estate agents doors and making offers prior to viewing properties, it seems that market activity will continue at high levels for quite a while yet.

A recent report from Shelter has slammed the housing system in England, describing it as “Unaffordable. Unfit. Unstable. Discriminatory.” Research involving 13,000 people highlighted issues such as going without food to pay the rent or mortgage and homes that were harmful to health, racism, and discrimination. With the cost of private rent rocketing, Shelter reports that families are forced into unfit homes, experiencing issues such as overcrowding, dampness, mould and condensation, and safety hazards. People reported feeling less secure in private rented accommodation and worried about reporting concerns due to fear of eviction. This affects 11 million private renters in the UK, a number that has doubled in the last 20 years. ‘No DSS’ policies and discrimination based on race, sexuality or being a single parent are reported as barriers to obtaining private rented homes. Resulting in a significant impact on the physical and mental well-being of those affected, Shelter believes the only way to tackle this crisis is for the government to build at least 90,000 new social homes each year in England. Read the report here.

Ongoing issues with the shortage of building materials have sparked a statement from John Newcomb, CEO of the Builders Merchants Federation and Peter Caplehorn, CEO of the Construction Products Association. Commenting that levels of demand are unprecedented both in the UK and globally, the joint co-chairs of the Construction Leadership Council’s Product Availability working group stressed the need for the industry to work collaboratively to complete projects. The new rules affecting the transport of goods has compounded the problem further, affecting the delivery of items in short supply such as steel, pitched roofing, plastic and paint/coatings, with some electrical components and cement becoming areas of concern. The Office for National Statistics indicates a price rise of around 7-8% for building materials should be expected and other items such as timber could double in price. With less buying power than the larger building companies, small and medium-sized companies (SMEs) are the hardest hit. The findings of the Federation of Master Builders State of Trade Survey for Q1 2021 reiterated that: “ongoing supply chain pressures caused by the coronavirus are a daily issue for builders unable to get hold of the products they need.” Whilst SMEs are reporting higher workloads, 93% of respondents reported they were experiencing higher material prices and over a third are struggling to hire bricklayers and carpenters. Read more here.  

14 local councils across England have been selected to take part in a six-month testing programme to Build Back Better. The National Design Code means to give councils a toolkit of design principles to ensure developments are beautiful and fit in with the local character. The project aims to enhance the character of the local area and test how communities can have more of a say in the design, appearance, and layout of buildings. As part of the pilot programme, each of the councils taking part will receive a £50,000 grant towards the project. Anna Rose, Head of the Planning Advisory Service said: “It is really exciting to see the National Model Design Code being tested by local councils across the country. The outcomes from this first set of pilots will help to build the capacity and collective learning that we need across the sector. I am looking forward to seeing what councils can achieve with their communities by using this new code...” The press release from the government gives details of the councils taking part, read here.

The ongoing debate over replacing natural gas with hydrogen for heating continues. Whilst oil and gas firms are pushing for the use of hydrogen when the country starts to phase out gas as a heating fuel, an article from the BBC explains that climate think tank E3G, WWF, and Greenpeace have sent a letter to the Business Secretary Kwasi Kwarteng urging the government to drop funding for "blue" hydrogen. Environmentalists state that heat pumps are a much better option. The article outlines the differences between "blue" and "green" hydrogen, and the views of those on either side of the argument.

Here are some interesting pages on the subject:
The World of Hydrogen has an information page on hydrogen and how it is made here.
E3G released a series of factsheets which you can find here.

A fire has broken out on a 19-storey tower block in Poplar, London this morning. It has been reported that parts of the eighth, ninth, and 10th floors are alight and more than 125 firefighters are on the scene. The tower block, called Providence Wharf, is reported to have "Grenfell-style" cladding. An article from January (here) explains how the company that built the block were one of those named as having failed to remove cladding on private developments post-Grenfell. At this stage, the cause of the fire is unknown. Read more here.

Restrictions are now in place on the sale of coal, wet wood and manufactured solid fuels for burning in the home. 

The restrictions, which came into force on 1 May, mean that: 

  • Sales of bagged traditional house coal and wet wood in units under 2m3 are now unlawful.
  • Wet wood in larger volumes must be sold with advice on how to dry it before burning.
  • All manufactured solid fuels must now have a low sulphur content and only emit a small amount of smoke.
  • In addition, a new certification scheme will see products certified and labelled by suppliers to ensure that they can be easily identified, and retail outlets will only able to sell fuel that is accompanied by the correct label.

The government press release describes how "Burning at home, particularly with traditional house coal or wet wood, is a major source of the pollutant PM2.5 – tiny particles which can enter the bloodstream and lodge in lungs and other organs. PM2.5 has been identified by the World Health Organisation as the most serious air pollutant for human health."

Read more here

The amount of households in the moving process is up by a staggering 50% based on a year-on-year comparison report by twentyci. The surge in house moving after the first lockdown has continued and figures indicate that Q1 2021 saw over 330,000 exchange of contracts, which is a year on year growth of nearly 55%. As a result of the buoyant market, there are concerns about whether there is enough stock to sustain these levels, with under two months of stock left in 530 districts of the UK. This is around half of what is usually available. Read the summary from twentyci here.

Making up around 7% of newly built properties each year, self and custom builds are to get support from the government to increase output by way of the government’s policy paper ‘Self and custom build action plan’. It is estimated that around 13,000 of these properties are built each year and according to the government, this could be increased considerably to around 30-40,000. Believing this market could make better use of smaller plots of land that are of no interest to larger developers, there will be help with access to finance, access to land, and expertise. Richard Bacon MP has also been commissioned by the Prime Minister to complete a review to come up with a plan to boost capacity and supply, and make recommendations to the government.

Surveys suggest that landlords' attitudes are changing when it comes to 'green mortgages'. This article said that a survey conducted in March by Mortgages for Business found that three in 5 (62% of the 300 surveyed) were interested in products that offer a lower rate for making their properties more energy efficient. Rewind twenty years and this statistic sat at just one in 10, and before 2000, Mortgages for Business said that no landlords were interested in green mortgages.

Jeni Browne, director of Mortgage to Business said: “Landlords’ attitudes have changed dramatically, particularly in the last decade. Landlords should be interested in these products though - quite apart from the ethical considerations, green mortgages reward landlords with a lower rate when they shrink their carbon footprint.”

More lenders are beginning to offer green mortgage products. The article touches on the new products that were recently launched by Keystone Property Finance (more on that here), and The Mortgage Works - Nationwide's specialist BLT arm. Read more here...

It has been reported that the UK will set radical new climate change commitments this week to cut carbon emissions by 78% by 2035. This brings the current target forward by 15 years, making it a "world-leading position".

This report from the BBC states that Leo Murray of the climate charity Possible called the announcement "fantastic", but added: "We're not on track to meet previous climate commitments and in many ways the government is still failing."
Mr Murray said ministers were "facing both directions at the same time", as they had scrapped the Green Homes Grant for insulating homes, had not stopped airport expansion and were "still pushing a £27bn roads budget".

Ed Matthew, campaigns director of environmental think tank E3G, said: "Setting an ambitious emission reduction target would boost the UK's diplomatic drive to persuade other countries to set out ambitious targets of their own."
He added: "The UK now has the opportunity to spark a global green industrial revolution, but ultimately its credibility will rest on action."
Read the article here.

This article from Property Reporter explains how new data from Halifax shows the gap between buying and renting has stretched by 8% in the last 12 months. When comparing the costs associated with a mortgage for a three-bed property to the costs of renting the same type of property, first-time buyers would be £800 better off than renters. In the last year, the monthly cost to rent has increased by 10% to £821, but the cost of mortgaging a property has only increased by 1% to £753. This is despite the average first-time buyer deposit increasing by £11,677 over the last year to £58,986. Click here to read more from Property Reporter.

This article by What Mortgage gives a broker’s view on the return of the 95% mortgage following the recent Budget where the government confirmed there would be a new Mortgage Guarantee scheme. It explains the new scheme, expected to be introduced around 19 April, will be similar to the Help to Buy scheme. It will give lenders protection when lending against 95% of the property value. In March 2020 there were 391 offers available for those with a 5% deposit; this dropped dramatically during the pandemic. Following the Budget announcement last month, six lenders have now re-introduced 5% deposit offers (albeit with certain criteria), bringing the current total to 29. Whilst this is still a long way off the number of offers available pre-pandemic, hopefully, the new scheme will see this number increase over the coming months. Read the article here.  

Properties in Wigan are selling faster than anywhere else in England and Wales, according to research conducted by Zoopla, taking an average of 26 days to reach an agreed sale. Other urban areas such as Leeds, Liverpool, Sheffield, and Manchester are selling within 34 days. Coastal areas have seen an improvement in the time to sell with Medway in Kent taking just 27 days to sell. The Isle of Wight is also experiencing a high level of popularity taking just 32 days to sell a property, which is 29 days quicker than the previous year. In Wales, Neath Port Talbot is taking 31 days and Bridgend 32 days to sell. The fastest-selling property type is a semi-detached 3 bedroomed home with a sale price of around £150,000 - £200,000. All of this results in a reduction in the supply of houses and the hotting up of competition amongst buyers. Overall, northern regions are experiencing the fastest-moving housing markets, with Medway, Isle of Wight and Bristol being the only southern regions to make it on to Zoopla’s top 20 list of fastest moving markets.

Read more here.

On 22 March the House of Commons Environmental Audit Committee published the 2019-21 Energy Efficiency of Existing Homes report (read here). The report highlights the areas of concern in reaching our legally binding climate change targets. Below is a snapshot of what the summary explains:

  • There is a “chronic” shortage of skills in the retrofit sector
  • A greater focus is needed on retrofitting the existing housing sector
  • The Heat and Buildings Strategy must be urgently published, with the framework to drive more funding from private investment
  • New initiatives needed for owner-occupiers
  • VAT on home renovation labour and energy-saving materials should be reduced to 5%
  • EPCS must be overhauled by revealing not just the fuel cost, but the energy and carbon metrics in its headline rating.

The report covers the Green Homes Grant Scheme and states: “The Green Homes Grant is welcome, but has been poorly implemented, beset by administrative problems and delays which fundamentally jeopardise delivery 

Energy Efficiency of Existing Homes 4of the scheme’s ambition. It is too short term and is now causing damage to the sector. The impact of its botched implementation has had devastating consequences on many of the builders and installers that can do the work, who have been left in limbo as a result of the orders cancelled and time taken to approve applications. It has only achieved ten per cent of its target to improve 600,000 homes in six months. We welcome the Government’s commitment to improve the scheme. It must be urgently overhauled and extended to a multi-annual scheme to provide the financial support to homeowners and build trust within the industry to encourage installers to get accredited and enable companies to hire staff. This needs to be included in the Heat and Buildings Strategy as an urgent priority.”

It was reported over the weekend that the Green Homes Grant Scheme will be scrapped. An update was published on the Green Homes Grant webpage today (29 March 2021) which confirms: “The Green Homes Grant scheme will be closing to new applications at 5pm on 31 March 2021.”

The National Housing Federation Summit heard from Robert Jenrick MP, Secretary of State for Housing, Communities and Local Government as he made his speech at their conference. With a nod to the extensive programme of building social housing in the post-war era, he hopes new programmes of building can continue in the same spirit. Commenting on how the pandemic has taught us that good quality homes are vital, he wanted attention to be paid to building communities, and in light of Grenfell, the need for safer homes. He addressed the remediation of unsafe cladding and the impact on leaseholders. Referencing a cultural shift in the relationship between landlord and tenant, he spoke about the need to focus on service delivery, saying “…When things go wrong, as they inevitably sometimes do, tenants should be able to seek redress in a reasonable time without an uphill struggle and know that they will be heard…”. In concluding the speech he identified that the provision of more affordable housing will play a part to “…level up all parts of the country and our society as our recovery finally gets underway…”. 
Read the full speech here.

The Competitions and Markets Authority (CMA) has told Taylor Wimpey and Countryside Properties to remove terms in their contracts that double ground rents every 10 or 15 years, saying it breaks consumer protection law. This comes following the launch of enforcement action by the CMA against four housing developers in September 2020 (here) for mis-selling and unfair contract terms relating to ground rents. The CMA’s chief executive Andrew Coscelli said “These ground rent terms can make it impossible for people to sell or get a mortgage on their homes, meaning they find themselves trapped. This is unacceptable. Countryside and Taylor Wimpey must entirely remove all these terms from existing contracts to make sure that they are on the right side of the law."…"If these developers do not address our concerns, we will take further action, including through the courts, if necessary." Read the government’s press release here.