6 INDUSTRY NEWS
Buyers are returningto market,but face lackof choice, says RICS
Buyers are starting to return to the UK housing market but have little choice of new properties, according to the September 2021 RICS Residential Market Survey. RICS reported steady growth in buyer demand in September, after a brief lull following a prolonged burst of activity around the Stamp Duty holiday. According to the report, this more
stable trend in buyer demand sees expectations for sales in the coming three months gaining momentum, with 11% more respondents anticipating an increase in sales expectations, up from +6% (net balance) in August. The 12-month sales expectations point to a stable trend in sales over the year to come. The September survey also highlights a continued lack of supply which will have further impact on the market as 35% (net balance) of respondents reported a further fall in instructions this September. In another indication of constrained supply, respondents report that the number of appraisals undertaken during this September was below the rate seen 12 months earlier. Alongside this, for the third successive month newly agreed sales dipped, with 15% (net balance) of respon- dents reporting a decline. The lack of available stock is creating competition amongst buyers, which is creating upward pressure on prices, said the RICS. In September, the national reading for house prices posted a “net balance” of 68%. While still pointing to strong house price growth, this has eased since May when 82% more respondents reported that house prices were growing. The three-month house price expectations remain positive with 21% of contributors anticipating prices to rise, and further ahead, over two thirds of respondents (70%) anticipate prices will continue to grow over the coming 12 months. Simon Rubinsohn, RICS chief economist, commented: “Delivering higher numbers of new homes is part of
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the answer, but it is critical they are built in the areas where the shortfall is most visible.” He adds: “It is also vital that the tenure
mix of the supply pipeline is broadly based, helping to address the challenges both in the private rental market and in social housing.”
driving seat. If levelling-up is to work, it must also be bottom-up.”
L&Gresearch shows supply issues and price concerns
Research by L&G has revealed that the housing crisis is being exacerbated by rising prices and constrained supply, driving down consumer sentiment around the availability of starter homes, social housing and rental properties. The report comes amid recent Government data showing that UK house prices have risen by an average of 13.2% over the previous 12 months. According to L&G, this indicates the housing market is failing to meet local needs across large parts of the UK showing deteriorating scores for house prices as a proportion of average income. London, the South East and the
South-West of England all recorded particularly low ‘housing index’ scores, says L&G with its research also showing that Cornwall, North Devon, East Devon and Chichester are facing acute housing issues. London scored only 50 (out of 100), with the SouthWest on 51, and Cornwall at 39. North and East Devon were 41 and 42 respectively, and Chichester,West Sussex, scored 42. The latest Legal & General Rebuilding
Britain Index (RBI) “has underlined the scale of the housing challenges facing the UK,” said the firm, showing a second consecutive decline. Legal & General called for a “public and private partnership approach” to tackling the supply issues. NigelWilson, CEO at Legal & General
says: “Our research shows a mismatch between local housing supply and demand, but also shows that we cannot look at issues in isolation. “The Prime Minister has set out ambitious plans to boost the UK’s regional economies,” he continued. “While this is obviously positive, realising this ambition will involve coordinated action at national and local level, with local partners in the
Redrowsets out roadmap to net zero
As part of its climate change strategy, Redrow has released its “roadmap” to achieving net-zero emissions by “no later than 2050” across its own operations, the homes it builds, and operations within its supply chain. The business has signed up to the Science Based Targets initiative’s highest ‘Business Ambition’ of pursuing efforts to limit warming to 1.5C, and will establish interim science-based targets in line with SBTi criteria, as well as its recommendations in 2022. According to Redrow, the business has
made “solid progress in reducing its carbon footprint in recent years,” with more efficient use of diesel fuel onsite, recording a 14% reduction in emissions in the past year. From July 2021, the firm says that all of its plots, show homes and site compounds have been supplied by “100% green certificated electricity.” The developer is “trialling the efficacy”
of Hydrotreated Vegetable Oil (HVO), a biodegradable non-toxic fuel that it believes “has the potential to replace diesel across all of the company’s construction operations.” Redrow has appointed the Carbon
Trust to measure the baseline of its Scope 3 emissions, model its Science Based Targets and advise on potential solutions and changes to business practices. Matthew Pratt, group chief executive
at Redrow, comments: “Playing our part in tackling the climate emergency is a key priority and we will set ambitious science-based targets to reduce carbon emissions across our whole business.”
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