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Housing Quality Network News from Around the Sector – 17 August 2017

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Housing Quality Network News from Around the Sector – 17 August 2017 Housing Quality Network News from around the sector – 17 August 2017 In the headlines Mears issues profits warning in wake of Grenfell tower fire Mears Group has downgraded its profit forecast and slashed its full-year revenue predictions as its clients delay new contracts following the Grenfell Tower fire. The repairs and maintenance company, said new orders were on hold as authorities focused on ensuring all their properties were safe and compliant. They warned that the “tragic events at Grenfell Tower will impact the housing division later this year as clients review the commissioning and safety practices at their properties”. The Guardian The full financial statement Terms of reference published for Grenfell Tower inquiry On Tuesday the terms of reference were announced, marking the official start date of the inquiry.The government have said that the Prime Minister has “accepted in full the recommendations” made by Sir Martin Moore-Bick, the judge leading the inquiry. The terms of reference and Prime Minister's response can be found by following the link below. Prime Minister’s Office Labour MP for Kensington sceptical about new inquiry Emma Dent Coad, said: "We were told 'no stone would be unturned' but instead are being presented with a technical assessment which will not get to the heart of the problem: what effects, if any, the lack of investment into social housing had on the refurbishment project. The Government has delegated this responsibility to an in-house team. We have no confidence whatever in the ability of Alok Sharma and a few politically compromised individuals to take on the task of answering this most important question." Evening Standard School children asked to help with Grenfell Tower wrapping with art Plans are being considered for Grenfell Tower to be covered with art by local school children. The complex operation to begin wrapping the tower block is due to begin imminently, which will prevent dust and ash being blown onto surrounding areas. Primary school children who live near the building have been asked to design artwork that will “help them look up and smile”. The wrapping will be placed around scaffolding, which will be erected floor-by-floor and will allow a lift to be installed in the building to help with recovering items. The tower is then expected to be demolished sometime next year. Evening Standard Policy, regulation and legislation Homelessness Reduction Act to commence from April next year The Department for Communities and Local Government has told councils that £61m has been set aside. In a letter to councils, homelessness minister Marcus Jones said the formula for how the funding will be distributed is being finalised and allocations will be announced in the autumn with the first payments expected to be made in the winter. Arden Chambers Housing statistics and intelligence Private rental sector gets a ‘perfect storm’ warning According to a survey of almost 3,000 landlords by RLA, 22% plan to sell at least one of their properties over the next year – with just 18% planning to buy additional properties to rent. The new data, published in the Residential Landlord Association’s (RLA) latest quarterly research, finds also that 33% of landlords have seen an increase in demand for homes to rent over the past three years. The ‘storm warning’ comes as property prices in many parts of the United Kingdom are stalling – with the average price of a home rising in July by 0.3% following recent declines in May, April, and March. 24housing 2 Rockingham House | St Maurice’s Road Telephone | 0845 4747 004 Internet | www.hqnetwork.co.uk York | YO31 7JA Fax | 0845 4747 006 Email | [email protected] HQN Limited Registered in England Reg No. 3087930 The other Waitrose effect: rapidly increasing evictions The analysis, conducted by Oxford University academic David Adler for Generation Rent, found the arrival of a new store was associated with an increase in the number of evictions of between 25% and 50%. According to the Generation Rent report, ‘Causes and Consequences of Evictions in Britain,’ published in October 2016, rising house prices encourage landlords to evict their tenants in order to free up their property for sale or a rent hike. By 2015 Q1, areas with a Waitrose had nearly twice as many Section 21 evictions, on average, as areas without one. 24housing Welfare Families in Wales require most financial help to meet basic needs of children Recent figures from the Institute of Fiscal Studies show that as many as two thirds of children classed as living in poverty have at least one parent working. This is hugely significant; it has major social, political as well as economic implications. Put bluntly, it suggests that the opportunity of employment alone is not necessarily the way out of poverty. ITV Welfare reform and Universal Credit: the impact on the private rented sector Senior Researcher, Tom Simcock’s report focuses on the impact of welfare policy changes and collected data from a large sample of 2,974 landlords and recommends that the freeze on LHA rates and HB rates are ended by the Government to remove these barriers for vulnerable tenants to the private rented sector. Residents Landlord Association Read the full report here 3 Rockingham House | St Maurice’s Road Telephone | 0845 4747 004 Internet | www.hqnetwork.co.uk York | YO31 7JA Fax | 0845 4747 006 Email | [email protected] HQN Limited Registered in England Reg No. 3087930 Finance Too much hinges on house prices: but Britain may yet avoid a crash Larry Elliott reports there is little to suggest that the property market is about to go though the agonies of the late 1980s and early 1990s, when prices fell in real terms for more than half a decade and record numbers of homes were repossessed. But the market has weakened since the start of the year and will remain weak for the foreseeable future. And that will have consequences for the wider economy. There are a number of reasons for the slowdown. The buy-to-let sector has gone cold since more a more stringent tax regime was introduced last year. Households have seen their real incomes squeezed by rising inflation and this has made them risk-averse on big financial decisions. The Guardian Nationwide mortgage lending hit by fall in buy-to-let loans Nationwide has reported a sharp fall in mortgage lending, mainly due to making fewer buy- to-let loans. Net mortgage lending fell to £2.4bn in the April-to-June quarter, down from £3.5bn a year earlier. The BBC Barclays Bank claim housing transactions are in structural decline Barclays Analyst Jon Bell argues there are simply fewer houses available to buy at any one time, and that restricted supply keeps prices high. It also funnels demand into the rental market. With fewer houses for sale and prices high, landlords can command higher rents. Those rents give landlords an incentive not to sell because the cashflow is so valuable. The result is that home ownership in England has declined from 71% in 2004 to 64% in 2015. The building of new stock in both public and private sector has also declined since the 1960. Public housing built by local councils today is a tiny fraction of what it used to be. While the private sector is more robust, it still builds fewer houses today than it did 50 years ago. Markets Insider 4 Rockingham House | St Maurice’s Road Telephone | 0845 4747 004 Internet | www.hqnetwork.co.uk York | YO31 7JA Fax | 0845 4747 006 Email | [email protected] HQN Limited Registered in England Reg No. 3087930 Energy and environment Japanese Knotweed found to be an unexpected influence in house sales New research by YouGov has revealed that Japanese Knotweed would stop 78% of people from buying a house if the invasive plant was found growing in the seller's garden. Zoopla Useful reports Leasehold and commonhold reform This Commons Library briefing paper considers recent trends in leasehold ownership and on-going problems associated with the sector. Areas identified for possible reform are summarised, including Government proposals which are currently subject to consultation. Parliament Blogs and opinion Owen Jones' assessment of the housing crisis in Britain The Guardian Columnist said "The housing crisis in Britain is something I'm so passionate about, because so many other social evils come out of it...They put off having a family, they worry they can't have the security for their kids. The idea of a home that they can buy is a fantastical notion, and because the council homes aren't built they can't get those either. This is a rich country. We can afford, surely, to solve this crisis. It's willpower that's lacking, not money, not resources." LBC Will Grenfell be a game changer for housing, bidding and contract management? Andrew Morrison of AM Bid Services Ltd ponders the effect Grenfell will have on social housing contracts, procurement teams, council committees, boards; main contractors, sub- contractors, suppliers, housing regulators and. crucially, the residents themselves. Scottish Housing News 5 Rockingham House | St Maurice’s Road Telephone | 0845 4747 004 Internet | www.hqnetwork.co.uk York | YO31 7JA Fax | 0845 4747 006 Email | [email protected] HQN Limited Registered in England Reg No. 3087930 Diane Abbott claims Grenfell fire victims are still being betrayed, two months on The Shadow Home Secretary and Labour MP for Hackney North and Stoke Newington claimed that while 175 offers have been made, only 14 households have been permanently rehoused and only 48 households have new temporary accommodation as of this week.
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