Social Housing New Build Spend Up 11% But Repairs Work Drops

The amount of money spent on building new homes in the social housing sector increased by nearly 11% in December but repairs and maintenance spend fell by 6.6%.  The Office for National Statistics’ figures for December found that £587m was spent on delivering new homes in the social housing sector across the month, up by 10.9% when compared with November. The spend across December 2018 also marked a year-on-year increase, up 4.6% when compared with December 2017. The rise in public housing new build spend contrasted with private housing output, which saw a drop of 6.8% on November, and 4.6% when compared with December 2017. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/social-housing-new-build-spend-up-11-but-repairs-work-drops-60142?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Inflation: Housing – Parliamentary Written Answer

Dr Andrew Murrison:  To ask Mr Chancellor of the Exchequer, if he will make it his policy to reflect house prices in the calculation of inflation.

Simon Kirby: Inflation statistics are produced independently of government by the Office for National Statistics (ONS). The current main measure of inflation is CPI. This does not include house prices as these are an asset price and in line with international practice are not included in a consumer price index. However, it does include some costs associated with housing, such as rental prices and the costs of renovating and repair and maintenance of homes. The ONS also produces CPIH, which does include housing costs but is currently undergoing development work after the UK Statistics Authority found faults in its production.

Councils Increasingly Look To HRAs For Capital Spend

Councils are increasingly funding capital spending through their Housing Revenue Accounts (HRAs) or major repairs reserves as government funding has decreased, a National Audit Office (NAO) report has found. Since 2010/11, funding from the HRA or major repairs reserves to support capital spending has increased by 58%. In 2010/11 £1.4bn came from HRAs, compared to £2.2bn in 2014/15. The NAO’s report looks at how councils’ capital funding and spending has changed since 2010, when the government started to reduce funding for local government. It found there are increasing pressures from capital spending and if authorities “cannot reduce their capital costs… it will place further pressure on their revenue spending”. Download the report from the NAO website.

Almost Half Of Landlords To Raise Rent In 2016

With an uncertain year ahead for buy-to-let landlords, almost half (45%) are planning to raise their rents in 2016, and almost one in five (18%) are planning inflation-busting increases of more than 3%, according to a survey carried out by SpareRoom.co.uk. The most common reason landlords cite (38%) for raising rents is the additional costs incurred by new government legislation, meaning future cuts to mortgage interest and wear and tear tax relief, stamp duty changes and costs of the 2016 Right to Rent roll out will be felt by tenants as well as landlords. Other reasons for rent increases include rents rising locally (23%), expensive property repairs and maintenance (6%) and higher mortgage repayments (4%). Read more on 24dash.

Fury as Leaseholders Told To Pay Up To £16,000 in Repair Bills

Anxious neighbours who have been told to shell out up to £16,000 in repair bills for their flats warned they might have to declare bankruptcy.  Leaseholders in Berwick House in East Finchley, have been told they will have to cover the costs of new wiring as well as pay for a new fire door and light switches.  Tempers flared at a heated meeting between social landlord Barnet Homes, which has imposed the charge, and the residents. Residents are furious that they received the bills without a consultation and urged housing officers to organise a second meeting to give them the chance to have their say and opt out of the works, some of which are legally required. Read more on the Hendon Times website.