Weekly Property News...

Weekly Property Newsletter:

Housing Shortage Persists: New Figures from NHBC

The latest report from the National House Building Council (NHBC) underscores a continuing housing shortage in the UK, with housebuilding currently operating at just half the rate needed to meet the new Labour government’s goals. In Q2 2024, the NHBC registered 29,281 new homes, a 23% decrease from the same period last year. Additionally, 33,847 new homes were completed during the same timeframe, representing a 6% decline from Q2 2023.

Despite a quarter-on-quarter improvement—new home registrations increased by 34% and completions by 29%—the current pace must more than double to meet Labour’s ambitious target of 1.5 million homes over the next five years. NHBC chief executive Steve Wood acknowledges the substantial challenge but remains optimistic due to recent government policies on new home-buyer incentives, planning system reforms, and infrastructure investments.

Wood highlights the urgent need to address the national skills gap, stressing the importance of upskilling the workforce through NHBC's national network of training hubs aimed at attracting a diverse range of apprentices.

Regional Variations in New Home Registrations

Across the UK, nine out of twelve regions experienced an increase in new home registrations in Q2 2024 compared to Q1 2024. Wales saw the most significant rise (+131%), followed by East Midlands (+98%) and North West and Merseyside (+61%). However, registrations fell in Northern Ireland and the Isle of Man (-15%), Yorkshire and Humberside (-10%), and London (-10%).

Private sector registrations soared by 55% in Q2 2024 to 20,502, while the rental and affordable sectors saw a more modest 2% increase to 8,779. Registrations increased across all house types, with detached homes (64%), semi-detached homes (40%), and bungalows (46%) showing the most notable growth.

Wood reiterates that meeting the government’s housing targets will require significant changes within the industry, substantial investment, and a steadfast commitment to maintaining quality standards during periods of growth.

Tax Warning to Landlords Ahead of HMRC’s July 31 Deadline

Landlords and self-assessment taxpayers are reminded to pay their advance tax payments by midnight on July 31 to avoid late payment interest charges at a 16-year high of 7.75%. Elsa Littlewood, a private client tax partner at BDO, cautions that missing the deadline can significantly increase overall tax bills due to high interest rates on outstanding payments.

Taxpayers can request HMRC to reduce payments on account if their tax bill for 2023/24 is expected to be lower. Those struggling to pay can set up a Time to Pay arrangement with HMRC, particularly for debts up to ￡30,000, which can be managed online.

New Mortgage Products Link Landlord Mortgages to EPCs

Foundation Home Loans has introduced new EPC Saver products for both buy-to-let and residential properties. These products, available to F1 borrowers with nearly clean credit histories, are designed to support borrowers in improving their properties' EPC ratings to C and above. The products offer two- and five-year fixed-rate options up to 75% LTV, with rates starting at 5.94% for buy-to-let and 6.24% for residential properties.

Additional features include a detailed EPC and bespoke report from Vibrant Energy Matters, highlighting steps to improve energy efficiency, alongside ￡1,000 cashback for renovation work. A free EPC inspection for landlords can be ordered up to three months post-mortgage completion.

Tom Jacob, director of product and marketing at Foundation Home Loans, explains that these products aim to help property owners enhance energy efficiency, reduce energy costs, and contribute to lowering carbon emissions from UK properties. This initiative aligns with recent trends where lenders offer preferential rates for properties with better EPC ratings.

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Stay tuned for more updates in our next edition!

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