8 INDUSTRY NEWS
UK’s “smallest homes in Europe” as little as 13 m²
The UK has the smallest homes in Europe, with the average three-bedroom home measuring 88 m2
, smaller than the
regulatory minimum, says online estage agent Sell House Fast. The company says that the loosening
of planning regulations means that conversions of ex-commercial property to residential can see homes measure 13 m², the size of the average bedroom. With the UK in the midst of a housing
crisis, suffering a shortage of both existing stock and new build housing, house prices are sky-rocketing at a rate far higher than relative earnings in the UK. With demand extremely high, and with
so few properties available, developers have seized the opportunity to sell sub-standard housing for inflated prices, according to Sell Homes Fast. Furthermore, councils are approving ex-commercial property to be converted into ‘micro homes’. Sell House Fast investigated the
regulations for property sizes in the UK, and assessed the guidelines which came into force in 2015, requiring flats to be at least 37m², and sets out minimum guides on new homes. The Government has however relaxed
the planning regulations to allow the conversion of office buildings into residential property, without needing to abide by minimum size standards. As a
result, the company found that these buildings fall far below the recommended size. Last year, ex-commercial property provided 12 per cent of new homes in England, a significant rise for the market. Research showed that the UK has among
the smallest homes across Europe, along with the smallest size regulatory allowances. Even other countries with dense populations such as the Netherlands and Germany have substantially larger homes (115.5 m² and 109 m² respectively). Those who live in Denmark were found
to have the roomiest homes, with an average dwelling measuring 137 m². “Perhaps not by coincidence, Denmark frequently tops the ‘happiest country’ chart,” Sell Homes Faster said. For some residents in the UK however,
micro-homes are ideal, often offering cheaper rent, and being a lot easier to maintain, said Robby du Toit of the property website. He commented: “There is a rising culture of spending less time at home, especially for the young where the house is just a house – somewhere to sleep, eat and leave important possessions. For such populations, these homes are ideal.” “However,” he continued, “for families
who need substantial space these homes are not viable, and the lack of suitable options out there is making people delay buying their own home and having children.”
LCP analyses London market
Following a recent London Central Portfolio (LCP) report on the new build crisis in London, where sales have fallen as much as 41 per cent, LCP has analysed the effect that this crisis is having on the rental market. Reports published last week, based on
HomeLet statistics, highlighted a slowdown in London rents, reflecting the first annual fall in values (1.2 per cent) since 2009. While this has been generally attributed to the Brexit-effect, LCP have indicated a more nuanced picture for the lettings market, which is now being impacted by a proliferation of new developments, resulting in supply beginning to outweigh demand in some areas. According to LCP, the London market
south of the Thames is beginning to suffer as large numbers of the planned 22,000 units between Battersea and Nine Elms have come to market. Typically purchased by foreign buyers as rental investments, figures demonstrate a significant annual increase in available rental properties in the area, amounting to 28.1 per cent. This has been accompanied by a six per cent discount on asking rents over the last three months. Alongside an increased supply of
properties with reduced asking prices, the number of properties actually let has dropped 14.8 per cent over the same period, and there has been a fall in achieved rents of 2.8 per cent. This is due to tenants’ increased bargaining power, and has been exacerbated by high asking rents for flats in new developments, at a time when corporate housing budgets are being tightened. Naomi Heaton, CEO of LCP,
commented on the figures: “In much the same way as we see in the sales market, there is increasing fragmentation in the lettings market, according to property type (new build or traditional stock) and by price point. “Alongside the oversupply of rental stock
in new build heartlands, the uncertain economic outlook has resulted in tighter tenant budgets. It is therefore not surprising that recent reports indicate a 14.8 per cent fall in the number of properties rented South of the River over the last three months, and a six per cent discount on asking rents.” LCP reported the rental market is much stronger in areas with limited new builds.
WWW.HBDONLINE.CO.UK
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60
