Labour proposes housing bond to develop 125,000 new homes

first_imgHome » News » Housing Market » Labour proposes housing bond to develop 125,000 new homes previous nextHousing MarketLabour proposes housing bond to develop 125,000 new homesLabour plans to use Help to Buy ISA to boost the number of new homes being developed.PROPERTYdrum8th April 20150563 Views Labour plans to introduce a housing bond system to generate up to £5 billion to fund the construction of up to 125,000 new homes if elected at next month’s General Election, the party has said.Using the Help To Buy ISA, which was announced for first-time buyers by the Chancellor, George Osborne,as part of his Budget last month, the new bond scheme would enable house builders to develop significantly more new homesIncome from the ISA would be placed into a “future homes investment fund” for new residential property schemes and is similar to housing bonds used in the 1920s to stimulate housebuilding.The fund, designed to help tackle the chronic housing shortage in this country, will be targeted at new sites with first-time buyers offered priority.In a speech to Labour supporters in Warrington on Saturday, Ed Miliband (left), said, “There’s nothing more British than the dream of homeownership. Starting out in a place of your own. But for so many young people today that dream is fading.”Describing Labour’s plan as the “first real plan for housebuilding in a generation”, Mr Miliband has vowed to deliver at least 200,000 homes a year by the end of the parliament, if elected next month.He continued, “We won’t let those large developers just hoard land – waiting for it to go up in value when it could be used to build homes. We’ll say: either you use the land or you lose the land. We will build a new generation of towns, garden cities and suburbs creating over half a million new homes.“We will make housing the top priority for additional capital investment. And today I can announce the next step in our plan. The next Labour government will create a new future homes fund. The banks will benefit from the taxpayer support we will provide to help people save for their first home.“In return, we will expect the banks to invest in homes for the next generation – unlocking £5bn for 125,000 homes. A Labour government will get Britain building again.”The Federation of Master Builders (FMB) which recently launched its “Programme for Government: 2015 to 2020” designed to help increase the supply of much needed new build homes in this country, is calling on the Government – whichever party is elected – and property industry to collaborate to develop at least 200,000 homes a year by 2020 in order to tackle the housing crisis.Speaking at high profile cross-party event in Parliament last month, Brian Berry, Chief Executive of the FMB, said, “In England we’re only building around half the number of new homes required to meet the demand for housing. Regardless of which party or parties take the reins in May 2015, the next Government must work with industry to develop a robust housing strategy and commit to building at least 200,000 new homes a year by 2020. This is a realistic target and one that can be achieved if we remove barriers to small local builders.”housing bond Help To Buy ISA housebuilding constructions first-time buyers April 8, 2015The NegotiatorWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles 40% of tenants planning a move now that Covid has eased says Nationwide3rd May 2021 Letting agent fined £11,500 over unlicensed rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021last_img read more

CBRE told ads for off-plan property investment units with ‘estimated ROI’ must be proven

first_imgHome » News » CBRE told ads for off-plan property investment units with ‘estimated ROI’ must be proven previous nextRegulation & LawCBRE told ads for off-plan property investment units with ‘estimated ROI’ must be provenComplaint against property consultancy is upheld by advertising watchdog over estimated ROI of up to 4.9% quoted in online brochure.Nigel Lewis10th October 201802,790 Views Leading property consultancy CBRE has been told not to advertise off-plan investment properties using estimated rental values and gross returns unless they can substantiate their claims, and that the figures used to do so must be clear in the ads.This judgement throws a considerable spanner into the property investment sector which until now has been able to make largely unsubstantiated claims about return on investment.The Advertising Standards Authority (ASA) received a complaint about an advert CBRE had published online for a newbuild tower it was marketing in The City called One Crown Place, EC2., which is being built by Malaysian firm AlloyMtd.In a section marked ‘key facts and services’ a link loaded an online brochure that made claims for estimated gross yields at the development of up to 4.9% depending on the property size.Property investmentThe complainant said they did not believe these yield figures were representative of the market in the area, and said the way they had been calculated had not been made clear.CBRE then made detailed representations to the ASA saying it was confident of the figures and that they had been based on 11 recent tenancies at a nearby and comparable development called The Heron using data from Lonres and Rightmove.“The CAP Code requires that the basis used to calculate any rate of interest, forecast or projection must be apparent immediately,” the ASA says.But the ASA has upheld the complaint, saying CBRE had not explore the criteria on which it had picked properties in The Heron to compare its developments with, that the prices within the Rightmove data were asking not sale prices. It also said the CBRE had not provided evidence of how it calculated the estimated rental value or gross returns.“We told CBRE to ensure that similar ads in the future did not quote estimated rental values and average gross yields from letting properties, unless they held adequate evidence to substantiate the claims.“We also told CBRE to ensure that the basis used to calculate the estimated rental values and average gross yields were made clear in the ads.”Read more about recent ASA judgements.One cRown place advertising standards authority ASA CBRE October 10, 2018Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021last_img read more