Rising House Prices See Borrowers Paying Mortgages Off Beyond Retirement

A significant number of borrowers are attempting to stretch mortgage terms to 35 or even forty years, with ‘maximum age at end of term’ the most-searched term by brokers in August. This backs up research which showed a 70% rise in 35 year-plus mortgages over the past two years. This trend for elongated mortgages is potentially a result of rapidly increasing house prices. With higher prices creating affordability issues, some borrowers are looking to spread their mortgage out over a longer time period to lower the monthly repayments. ‘Income multiple used for affordability assessment’, was the second most-searched term in the residential market in August. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/finance/rising-house-prices-see-growing-number-of-borrowers-paying-mortgages-off-beyond-retirement.html 

Stamp Duty Land Tax – Parliamentary Written Answer

Lord Taylor of Warwick: To ask Her Majesty's Government what plans they have, if any, to extend the stamp duty holiday; and if they do have such plans, what assessment they have made of the impact of an extension on the benefits to local economies.

Lord Agnew of Oulton: The Government does not plan to extend the SDLT holiday. The SDLT holiday was a temporary measure introduced in July 2020 to create immediate momentum in the property market, supporting jobs in the industry. The £500,000 threshold was stepped down to £250,000 on 1 July 2021 and will return to the normal level of £125,000 on 1 October 2021.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Lords/2021-07-20/HL2244 

Sunak To Extend Stamp Duty Holiday To June

 Another twist in the tale of the stamp duty holiday extension, as reports are emerging that the Chancellor is mulling over the possibility that he will allow the scheme to run until June. According to The Times, the extension will be announced in next week's budget, with the Chancellor confirming as part of his plans that the deadline will be moved from the 31st March to the end of June. The chancellor has been urged to push back the deadline amid a heated campaign by property professionals and economists who argue that many people have been left scrambling to complete their transactions before the end date. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/property/sunak-now-considering-stamp-duty-holiday-extension-to-june.html

Help To Buy Extended Until The End Of May

The Help to Buy equity loan scheme has been extended by two months to 31 May to accommodate buyers and builders with applications already underway. The deadline has been changed due to the pandemic, which has impacted the time it takes for developers to build homes, while the housebuying process has been notoriously slow and cumbersome for buyers over the past few months. Homes England said in a statement: “There will be no more extensions, so we are asking homebuilders to continue to build at pace.” Read more on the Property Wire website.

https://www.propertywire.com/news/help-to-buy-extended-until-the-end-of-may/ 

Major Backlash Over Permitted Development Rights Expansion

A government consultation that sought views on extending PDR to include more types of schemes and cut application decision times has received strong opposition from a number of groups. Responding to the consultation, which closed on 29 January, the Chartered Institute of Housing (CIH) warned that the proposals “risk delivering poor-quality homes that undermine people’s health, well-being and quality of life”. The policy, which allows developers to bypass the planning system on certain sites, has been linked with a proliferation of inadequate housing in recent years, with the government’s own review into PDR acknowledging its negative effects. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/government-receives-major-backlash-over-permitted-development-rights-expansion-69396?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60 

Help to Buy Scheme: Coronavirus – Parliamentary Written Answer

Rebecca Long Bailey: To ask the Secretary of State for Housing, Communities and Local Government, with reference to Homes England's press release of 8 December 2020 on the effect of the covid-19 outbreak on housing starts, if his Department will ensure that buyers already in the process of purchasing properties will not lose access to Help to Buy scheme finance in the event of covid-related delays to the construction of their properties.

Christopher Pincher: Where reservations were agreed before 30 June 2020, they were granted flexibility allowing such reservations to practically complete by 30 April and legally complete by 31 May 2021.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2021-01-19/140145

Homes England Extends Help To Buy Deadline

Homes England has extended the practical-completion deadline for people looking to take part in the government’s Help to Buy equity loan scheme, to take account of delays to the sector caused by the coronavirus pandemic. Buyers hoping to secure a 20% government loan in lieu of a deposit were required to complete their transactions with developers by February 28 ahead of the Help to Buy scheme’s end on March 31. But Homes England has now written to participating housebuilders extending the practical-completion deadline to the end of March, which remains the legal completion deadline for the scheme – due to be replaced with a new offer exclusively for first-time buyers from the start of April. Read more on the Housing Today website.

https://www.housingtoday.co.uk/news/homes-england-extends-help-to-buy-deadline/5109931.article 

Buyers Demand Stamp Duty Holiday Extension

There is growing demand for an extension to the stamp duty holiday from many of those who have started the buying process but have yet to complete, fresh research shows. According to a new survey of existing homebuyers, 67% of respondents want to see the stamp duty holiday extended while almost half are deeply concerned that they will miss the current end of March deadline. The holiday has given the housing market a much-needed boost after it ground to a halt during the second quarter of last year following the lockdown in late March. Read more on the Property Industry Eye website.

https://propertyindustryeye.com/buyers-demand-stamp-duty-holiday-extension-as-petition-hits-72000-signatures/

Government Fails To Tackle Covid Rent Debt Crisis

The eviction ban in England has been extended for six weeks, in a move described as a ‘sticking plaster’ by landlords. Current restrictions were due to end on 4 January, following a month-long ban on bailiffs serving notices and enforcement in England over the Christmas period, a move which Housing Secretary Robert Jenrick said would 'help protect the most vulnerable renters'. The NRLA says the move will do nothing to support landlords and tenants long term and what is needed is a comprehensive financial package, to allow tenants to continue to pay their rent without building unmanageable debt. Read more on the NRLA website.

https://www.nrla.org.uk/news-government-fails-tackle-Covid-rent-debt-crisis

Exactly What The Ban Extension Means To Agents And Tenants

The Law Society has set out exactly what the extension of the eviction ban means to agents, landlords and tenants. The society says:

- Courts are neither hearing nor progressing applications for possession orders made by landlords before March 24;

- This applies to all private or social housing tenancies

- There are exceptions: these include applications for possession against trespassers

- Schedule 29 Coronavirus Act 2020 also remains in force meaning landlords must provide tenants with a notice period of six months when issuing a notice seeking possession;

- Tenants are still obliged to pay rent during this period.

Read more on the Letting Agent Today website.

https://www.lettingagenttoday.co.uk/breaking-news/2020/8/exactly-what-the-ban-extension-means-to-agents-and-tenants

Government Announces Another Extension To Evictions Ban

The MHCLG has confirmed that it is to extend the ban in England on evictions to 20 September and will also introduce six-month long notice periods that will run until 31 March 2021. The ban, which was announced in March because of the Coronavirus pandemic, is currently due to end of 23 August. It has also been confirmed that once the courts do re-open, only serious cases including those involving anti-social behaviour and domestic abuse will be prioritised. The further four-week extension will allow for further work to be done to prepare before the ban is lifted and mean that landlords will continue to be unable to start proceedings to evict tenants. Read more on the ARLA website.

https://www.arla.co.uk/news/august-2020/government-announces-another-extension-to-evictions-ban/ 

Affordable Homes Programme Extended

A scheme to help get more families across England into affordable homes has been extended by a year, Housing Secretary Robert Jenrick has announced. Following unavoidable delays in the construction industry due to coronavirus, it is estimated that the building of 53,000 new affordable homes have stalled. The government is stepping in to safeguard funding and make sure these much-needed homes are not lost altogether, extending the current Affordable Homes Programme until March 2023. Homes to be built under the government’s £9 billion scheme originally needed shovels to be in the ground by March 2022. However the announcement means that housing associations and councils have a year longer to begin building these homes while still receiving government support. Read more on the Gov UK website.

https://www.gov.uk/government/news/jenrick-acts-to-safeguard-affordable-homes-during-pandemic

Help to Buy Scheme: Coronavirus – Parliamentary Written Answer

Grahame Morris: To ask the Secretary of State for Housing, Communities and Local Government, if will he extend the Help to Buy scheme to support (a) housebuilders and (b) first time buyers with approved mortgages in relation to new build handover dates that have been delayed beyond that scheme's cut off date as a result of the covid-19 outbreak.

Christopher Pincher: As announced at Budget 2018, there is a new two year Help to Buy scheme commencing from 1 April 2021, specifically for first time buyers and so supporting people onto the housing ladder. Where new build properties are not completed within the current Help to Buy scheme deadlines, they may be eligible for sale through the new scheme. More information on the new Help to Buy scheme can be found at https://www.helptobuy.gov.uk/equity-loan/eligibility/ .

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2020-06-25/64892

Right to Buy Scheme – Parliamentary Written Answer

Lord Porter of Spalding: To ask Her Majesty's Government what consideration they have given to extending the timeframe in which local authorities must spend retained Right to Buy receipts from three years to five years.

Lord Greenhalgh: On 12 June, we agreed to a temporary extension of the next expenditure deadline of 30 June by six months, and wrote to local authorities to inform them of this change.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Lords/2020-06-18/HL5935

Members Rallied To Contact MPs As Evictions Ban Extended

The extension of the evictions ban will have devastating consequences for some landlords, with the NRLA encouraging those affected  to write to their MPs to make sure their voices are heard. Landlords could face serious financial hardship or end up stuck with anti-social tenants for months on end as a result of the extension and the association wants them to share their experiences to make sure they have their say when it comes to agreeing a new possessions process. Read more on the RLA website.

https://news.rla.org.uk/members-rallied-to-contact-mps-as-evictions-ban-extended/

Help to Buy Scheme: Coronavirus – Parliamentary Written Answer

Lord Lansley: To ask Her Majesty's Government what plans they have to extend the cut-off date for the completion of Help to Buy properties by six months in view of the delay to construction activity

Lord Greenhalgh: To support customers, Help to Buy Equity Loan Agents are already offering more time for purchasers to complete their transactions. Homes England released this guidance on 1 May.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Lords/2020-05-14/HL4509

Eviction Ban Extended

Landlords could be left for five months without rent and anti-social tenants allowed terrorise neighbours after the government announced an extension to its eviction ban. The ban, introduced by the government in response to the Covid-19 pandemic has now been extended by two months following an announcement late this afternoon. Housing minister Robert Jenrick said the suspension of evictions from both private rented accommodation and the social sector will be extended by two months until August 23. He also announced new court rules, which he said ‘will ensure vulnerable renters are protected when the suspension of evictions ends’ Read more on the RLA website.

https://news.rla.org.uk/disappointment-as-eviction-ban-extended/

Community Housing Fund – Parliamentary Written Answer

Anthony Mangnall: To ask the Secretary of State for Housing, Communities and Local Government, if he will extend the Community Housing Fund for a further five years.

Christopher Pincher: The Community Housing Fund closed at the end of March. Ministers are considering all budgets in the round and allocations for 2020/21 will be confirmed at Main Estimates later in the Spring. Allocations for future years will be considered at the next Spending Review.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2020-04-24/39747

Social Homes May Go Unbuilt Without Right To Buy Extension

Councils have demanded an extension to the time they have to spend money through Right to Buy sales before it returns to the government. The Local Government Association (LGA) warned that the coronavirus means much-needed new social housing could go unbuilt unless ministers grant the extension. Local authorities are only allowed to hold on to Right to Buy receipts for spending on replacement homes for three years until they have to give the cash back to the Treasury. But the LGA said many councils are worried they will not have time to spend the cash with housebuilding delayed by the COVID-19 pandemic and called for the deadline to be extended to at least five years. Read more on the LGA website.

https://www.local.gov.uk/coronavirus-social-homes-may-go-unbuilt-without-right-buy-extension

Midlands Voluntary Right To Buy Pilot Extended

The Ministry of Housing, Communities and Local Government (MHCLG) confirmed that the Midlands Voluntary Right to Buy (VRTB) pilot will now finish at an undecided date later this year. Sales through the scheme were previously expected to complete on or around 31 March. MHCLG would not disclose the reason for the move. Figures show that as of 18 March, 1,526 sales had been completed through the pilot and £99.4m had been spent on funding discounts. That is only half the £200m set aside for the VRTB pilot by ministers, who had expected around 3,000 homes to be sold. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/midlands-voluntary-right-to-buy-pilot-extended-66234?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60