December 2011 - Token gestures not enough to bolster Hampshire property
Aspiring homebuyers will have to wake up to a new reality in the “age of austerity” warned Hampshire property experts at the latest Wilkins Kennedy Round Table.
The panel of leading industry figures laid out their expectations of the property market in 2012, with widespread calls for a relaxation of planning laws and Government assistance to kick-start the ailing sector.
Although the county’s residential market seemed to be faring better than the nation as a whole – one independent agent revealed an impressive 34 completions in November alone – all agreed first time buyers now faced unprecedented challenges.
Reports of a one million shortfall in housing across the UK were thought to be putting the lowest rung of the property ladder further out of reach of first time buyers, who typically have to stump up a £36,000 deposit for an average starter home in Hampshire.
Government incentives such as the ‘stamp duty holiday’ and funding for 16,000 new homes were generally dismissed as token gestures with delegates warning a change in the whole culture of UK house-buying is what’s really needed.
The example set by the continent where renting is considered the norm, was heralded as a positive and plausible way forward for the UK. There was disagreement on whether buy-to-let investors are currently capable of providing the necessary volume of properties, especially with prices flat-lining. Institutional investors may ultimately step into the vacuum, it was speculated, entering the residential market significantly for the first time.
Hampshire’s commercial property sector was also reported to be facing its own challenges – too few tenants for the swathes of unused, low-grade offices across the county and not enough higher-grade office space for aspiring and growing companies.
The rise in the number of businesses offering rent-free leases simply to offset rates was highlighted as an indicator of the deep seated issues plaguing the market.
The many failings of planning legislation were a recurring theme and overly stringent authorities stood accused of being the root cause of a number of the industry’s woes.
Simple solutions such as converting abandoned shops and offices to residential and relaxing the rules on greater greenfield development, are both widely prevented by strict planning laws, the group was told.
Hypothetically appointed to the role of Chancellor for a day, delegates seized the opportunity to introduce a phasing of levels of stamp duty, incentives to part-buy/part-rent for first time buyers, a holiday from business rates and a promise to keep interest rates as low as possible for as long as possible.
Bringing the debate to a rousing conclusion was the call for a Churchillian leader to help the country to face-up to difficult times: “It’s tough. Chin-up. Get on with it.”
Ends
If you would like further information, or would like to contribute to the Wilkins Kennedy Round Table discussions, then please contact Claire Peers.
