HOUSING MANIFESTO 2015

Transcription

1 THE PROPERTY PROFESSIONALS HOUSING MANIFESTO 2015 Part of the UK s leading Property Professionals Network 36574_NFoPP - Manifesto 2015.indd 1 17/02/ :27

2 IT S ABOUT HOMES, STUPID! BRITAIN IS STANDING TODAY ON THE PRECIPICE OF A CRISIS IN THE SUPPLY OF HOUSING. WE ARE SIMPLY NOT BUILDING ENOUGH HOMES TO MEET BURGEONING DEMAND FROM BOTH THE SALES AND PRIVATE RENTED SECTORS. As a society we live and work very differently to how we once did. But what still rings true is that everyone believes they have a universal right to a home. And our deeprooted concern is that government policy on housing, as it currently stands, cannot deliver on this requirement. Let s remind ourselves of the facts. According to the ONS s data: On average house prices have increased by 6.9% per year since 1980 The number of property sales in the UK almost halved from a peak of 1.67 million in 2006 to 0.86 million in 2009 Rental prices increased in all the English regions over the year to December 2014, with rental prices increasing the most in London (2.4%), followed by the South East (2.1%) The overall level of house building in the UK has declined since 1980, with 140,880 houses built in financial year 2013/14 a fall of more than 44% from the 251,820 built in 1979/80 BUT THESE FACTS SHOULD COME AS NO SURPRISE We travelled across the length and breadth of the United Kingdom, meeting local professionals, politicians, experts and campaigners from the nations and regions, and talked to them about their hopes and fears for the housing sector. Time and again we heard people voice concerns about government policy on supply, regulation and taxation. We heard about the over-supply of one or two bedroom flats in one part of the country, and the lack of suitable family homes available in another. We were told about workers on zero hour contracts who struggled to rent properties because they do not have the requisite proof for tenancy agreements. Mark Hayward Managing Director National Association of Estate Agents BRITAIN NEEDS BETTER THAN THIS Providing housing, or more importantly homes, requires finance, suitable land, time and skill. Policymakers seem to have forgotten this. Housing cannot be a political football for future governments to use to score points against each other. Ultimately we need to take the politics out of housing. We know this is easier said than done. So instead we ask for all future parliamentarians to maintain a long-term progressive view and to deliver on the following commitments. David Cox Managing Director Association of Residential Letting Agents 36574_NFoPP - Manifesto 2015.indd 2 17/02/ :27

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4 HOUSING SUPPLY HOUSING SUPPLY HAS BEEN A SERIOUS PROBLEM FOR MORE THAN 25 YEARS, WITH TOO FEW HOMES BEING ADDED TO THE NATIONAL HOUSING STOCK. Governments of all persuasions have buried their heads in the sand rather than face the serious challenge of matching growing demand with dwindling supply. Currently only 5% of the UK s housing stock is transacted annually. Meanwhile, tenant demand vastly outstrips housing supply in the private rented sector. For every house built in England, two households are created. Within the private rented sector this is compounded by the fact that so-called accidental landlords for example, those people who found themselves in negative equity during the financial crisis - are now leaving the rental market as the sales sector becomes more buoyant. We need stability and a long term view. Bricks and other materials currently need to be ordered a year before a home can be built. We need skilled workers to ensure that properties are built well. We need to cut red tape so that regulations are not so onerous and do not result in unaffordable housing as an unintended consequence. This does not mean building poor quality homes, just ensuring that the costs are reasonable. 5% Current percentage of the UK s housing stock that is transacted annually Planning policy needs a radical rethink - we need to apply some common sense to ensure that planning policy does not make it easier to build in some regions over others and that local authorities in a region work together more coherently. Government must resist calls to commit tenants to compulsory three year leases. Our research shows that average tenancies last between 18 and 24 months. To do so would be a disincentive to tenants and landlords who require flexibility to be able to plan for their futures _NFoPP - Manifesto 2015.indd 4 17/02/ :27

5 REGULATION & LICENSING BRITAIN CURRENTLY MAINTAINS A TWO-TIER PRIVATE RENTED MARKET, CONSISTING OF THOSE WHO OPERATE TO PROFESSIONAL STANDARDS AND THOSE THAT DO NOT. Consumers often do not know the difference between the two, thus the onus falls on them to be able to tell the difference. Our agents are already regulated and operate to the highest professional standards. They are fully qualified and we offer tenants and landlords client-money protection. The certainty we provide should not be the gold standard, but what every consumer should be demanding from their agent. It should be compulsory for letting agents to be members of a client money protection scheme. Letting agents hold a significant amount of money on behalf of the tenant and landlord and consumers are at risk of losing it if they choose the wrong agent. We want regulation to be tightened for the entire industry, and a more stringent licensing code created for everyone. Greater regulation for letting agents in particular will ensure fairness, a level playing field and the removal of those agents that bring the industry into disrepute. We believe balance needs to be struck for all parties concerned. Government should resist calls to impose an outright ban on letting agents charging fees to tenants in England, Wales and Northern Ireland. The average fee charged by ARLA agents is 202, which covers a range of critical checks and ensures a smoother and more transparent transaction between agent, landlord and tenant. Banning fees would simply increase the likelihood of tenants facing higher rent charges. 1% The UK national average for rent increases last year 36574_NFoPP - Manifesto 2015.indd 5 17/02/ :27

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7 APPROPRIATE PROPERTY TAXES 2% of landlords have a portfolio of more than 10 properties THE CHANGES TO THE STAMP DUTY THRESHOLDS ANNOUNCED IN THE AUTUMN STATEMENT WERE A VERY WELCOME, IF MUCH OVERDUE, REFORM THAT WILL HELP THE MAJORITY OF BUYERS AND GET THE HOUSING MARKET MOVING AGAIN. As well as tackling supply as an issue we also need to make the most of our current housing stock by making sure properties are not left empty for extended periods of time. There are large numbers of homes that currently lie empty, which is frustrating for those looking for somewhere to live and risks creating a negative impact on local communities. While we support fair property taxes, the prospect of punitive taxes for those who own property at the top-end of the market are already having an impact. While the price of property has shot up in recent years, people s salaries and living standards do not reflect this. Those who find themselves caught in the web of the proposed mansion tax, because their family home has gone up in value, are in a difficult position. While this is by and large an issue that impacts those in London or the South-East, it is by no means exclusive. Institutional investors should be encouraged into the residential property sector. Department of Communities and Local Government research shows that only 2% of landlords have a portfolio of more than 10 properties and with 4 million tenants now living in the private rented sector, demand cannot be met. Major economies such as France, Germany and the vast majority of landlords are institutional, professionalising the sector to a greater extent than in the UK. Local authorities need to be empowered to be able to effectively fine home owners who leave properties sitting empty, raising the severity of penalties the longer the property stays empty. Home owners and landowners should be incentivised to maintain and make improvements in their properties, thus improving the quality of housing stock in general. Government should commit to reduce VAT on housing renovation and repair. Future Governments should not introduce a Mansion Tax which would be a regressive form of taxation that asset-rich and cash-poor consumers may not have the ability to afford. The private rented sector should be treated as an entrepreneurial business activity for Capital Gains Tax purposes, allowing landlords to take advantage of the same level of roll-over relief available to other businesses when reinvesting in the sector and limiting CGT to gains released from a business as profit _NFoPP - Manifesto 2015.indd 7 17/02/ :27

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9 ABOUT NAEA The NAEA is the UK s leading professional body for estate agency personnel; representing over 7,000 members who practise across all aspects of property services. We are dedicated to the goal of professionalism within all aspects of property, estate agency and land. Our aim is to reassure the general public that by appointing an NAEA member to represent them, they will receive in return the highest level of integrity and service for all property matters. NAEA s aim is to reassure the general public that by appointing an NAEA member to represent them they will receive in return the highest level of integrity and service for all property matters. NAEA members are bound by a vigorously enforced Code of Practice and adhere to professional Rules of Conduct. Failure to do so can result in heavy financial penalties and possible expulsion from the Associations _NFoPP - Manifesto 2015.indd 9 17/02/ :27

10 ABOUT ARLA ARLA is the UK s foremost professional and regulatory body for letting agents; representing over 7,500 members. Our members operate to professional standards far higher than the law demands and we campaign for greater regulation in this growing and increasingly important sector of the property market. By using an ARLA Licensed agent, consumers have the peace of mind their agent will provide a professional service and their money is safeguarded by a Client Money Protection scheme. In May 2009, ARLA became the first body in the letting and property management industry to introduce a licensing scheme for members. This ensures those who carry the ARLA Licensed logo are professionally qualified, governed by a strict Code of Practice that provides a framework for ethical conduct and offers a complaints and disciplinary procedure so that any disputes are dealt with transparently and fairly _NFoPP - Manifesto 2015.indd 10 17/02/ :27

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12 Part of the UK s leading Property Professionals Network 36574_NFoPP - Manifesto 2015.indd 12 17/02/ :27