The Government’s proposals to revive the housing sector are a step in the right direction but more radical action is needed, according to Bristol property experts Jones Lang LaSalle.
They say that plans to relax planning requirements, extend the FirstBuy shared equity scheme, invest in stalled housing sites and a debt guarantee for lenders to invest in the private rented sector are all measures that will go some way to kick-start the new homes sector.
The firm’s planning experts are encouraged by the plans to make it easier for developers to change from commercial to residential use as a potentially very positive step to help regenerate towns and cities across the region. But they warn the Government must get the detail right as there is a danger that local authorities will seek to apply a blanket exemption which would then undermine the measure.
Jones Lang LaSalle argue more innovative steps are needed from both the Government and developers to get the market moving again and meet the growing demand from the rental sector in their new report on the housing market Residential Eye.
Ideas which the Government should consider including a new ‘ParentBuy’ scheme with measures to incentivise parents to move out of their family home, downsize and help their children buy and a new use class for the private rented sector to replace the affordable housing requirement demanded by local authorities. Stamp duty should also be scrapped on new build homes to encourage buyers and further lending for developers.
Developers could also be more innovative by building homes designed particularly for people to share or for renting as most homes are currently developed with owner-occupiers in mind which is not where demand is strongest. Mortgage-lenders could also consider creating new products to enable easy division and sales of part-shares in properties.
Vicky Dudbridge, a specialist in residential property at Jones Lang LaSalle’s Bristol office, said: “The new changes introduced by the Government do go some way to addressing the issues with the new homes market in the South West but we believe further measures and more innovation solutions are needed if serious inroads are to be made.”
Kevin Hunt, planning specialist at Jones Lang LaSalle’s Bristol Office, added: “The approach to enable change of use from commercial to residential is a very positive step forward as if successful it will help the regeneration of towns and cities across the UK.
“However it will be interesting to see, as details emerge, if the opportunity for local authorities to seek an exemption will result in them applying a blanket exemption which will prevent this approach from making a difference to the stalemate that currently exists.”
