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Property roundup
Review of stamp duty
The UK Government must overhaul stamp duty land tax radically to create a fairer system for consumers, says RICS (Royal Institution of Chartered Surveyors).
Proposing a system that would benefit 99 per cent of homebuyers in the east of England, RICS have called on the government to find a way of implementing the policy, which will provide a boost to the economy.
RICS has proposed the abolition of the existing stamp duty land tax system, which is currently charged at one per cent of the full sale price of properties worth between £125,000 and £250,000, rising to three percent on the full cost of homes between £250,000 and £500,000.
Four percent is charged on homes worth more than £500,000. Residential stamp duty revenue has more than tripled since 1999/2000, rising by 250 per cent.
RICS want to replace it with a two-tier marginal tax system. No one will pay stamp duty on the first £150,000 of a house price. Above this value a 2.5 per cent marginal rate would be charged on every pound up to £250,000, with a five per cent marginal rate applying to every pound thereafter.
Everyone purchasing a home under £1 million will pay less stamp duty. Currently, a buyer looking to purchase a £250,000 property will pay £7,500 in stamp duty.
Under the RICS proposal they will now pay only £2,500, making the property market more accessible, especially for those first time buyers.
David Potter, RICS East Operations director said: “HM Treasury needs to find a way to implement this policy or, if they can't do this imminently, to introduce a stamp duty holiday that will get the market moving.”
Challenges set for eco-town developers
The fifteen experts on the Eco-towns Challenge Panel set out a series of recommendations for potential eco-town developers earlier this week.
The panel, made up of leading experts from the worlds of design, the environment, transport and sustainability, have set challenges to help the developers improve their plans to create world-leading sustainable developments.
Many of the developers have been praised for their vision and commitment but others are warned that their ideas must be more ambitious or that they lack innovation.
Developers were grilled on issues ranging from their ability to reduce the carbon footprint of residents and their reliance on cars to the likely "day in the life" of an eco-town resident in 2020.
Housing minister Caroline Flint said: “I have been clear from the start that only those bids that reach the highest possible standards for sustainability can make it through.
“The Eco-town Challenge panel have played an important role in both providing advice and encouragement to developers on what they have done well, but also challenging them to up their game where there is room for improvement.
“This process was meant to be a challenging ride for the developers, and they need to be open to the creativity of these ideas. Some clearly need to up their game and the ball is now in their court,” Ms Flint added.
John Walker, chairman of the Eco-towns Challenge Panel, said:
“Our brief was to challenge each proposal in a robust and constructive way, and I think we have done a good job on that front.
“We have seen much to admire, but in all cases we are challenging the developers to take major steps forward. We want the final eco-towns to be better than the best of the current examples that do exist in the UK and the rest of Europe - clearly there is still a lot of work to do,” added Mr Walker.
Developers now have the opportunity to consider how they plan to respond to these challenges before meeting with the Panel again next month to discuss their work in progress.
The full recommendations of the Eco-towns Challenge Panel can be viewed at www.communities.gov.uk/housing/housingsupply/ecotowns/
Drive for affordable homes moves forward
The government’s drive to deliver much needed new affordable homes and safeguard higher housing standards for eight million social housing tenants has taken another step forward.
Housing minister Caroline Flint announced the recruitment of two top positions at the agencies charged with achieving these goals earlier this week.
Robert Napier will become the first chair of the Homes and Communities Agency (HCA), the new agency to support regeneration and drive forward the delivery of new affordable homes.
Peter Marsh, deputy chief executive of the Housing Corporation, will become the first chief executive of the Tenant Services Authority (TSA) to oversee the development and implementation of the regulator when it opens for business.
The TSA will regulate social housing landlords, setting high standards of management across housing association and local authority social homes, listening to tenants' concerns and using its powers to make sure tenants are getting a good service.
Through the new Housing and Regeneration Bill the government is committed to address the shortage of affordable housing, to make new housing developments more environmentally friendly and to give social housing tenants a better deal.
The two new bodies will be created subject to the bill receiving Royal Assent.
Green energy revolution
The government has announced that it plans to move away from fossil fuels to wind, solar, and tidal power as part of its green energy programme.
The Federation of Master Builders (FMB) has welcomed the announcement, but said that an accompanying green housing revolution is also needed if carbon emissions are to be cut and the housing stock made more energy efficient.
Brian Berry, director of External Affairs at the FMB said: “The government is failing to develop a coherent strategy about what to do with Britain's existing housing stock.
“Given that homes are responsible for 27 per cent of the country's carbon emissions and that nearly 70 per cent of our current housing will still be standing in 2050 urgent action is needed now to make our homes greener and more energy efficient.
“The government's leadership in tackling in new build needs to be matched with new initiatives and leadership about what it intends to do with our existing homes. We need a range of incentives to encourage householders to upgrade their homes. “Cutting VAT from 17.5 per cent to five per cent on energy efficient improvements would be a start as would reform of Stamp Duty and the introduction of Council Tax rebates,” Mr Berry went on to say.
Launch of the zero carbon hub
The National House Building Council (NHBC) has welcomed the recent launch of the 'Zero Carbon Hub' - the new public and private partnership, which has been charged with making zero carbon homes a reality from 2016.
Neil Jefferson, NHBC's general manager, has been appointed as interim chief executive and NHBC has committed over £250,ooo a year to funding the Zero Carbon Hub as well as research and development resources.
Imtiaz Farookhi, NHBC chief executive and member of the 2016 Taskforce said: “The next few years are critical for the new homes industry and the Zero Carbon Hub will have an enormous role to play in coordinating and focusing activity across the private and public sectors to meet the huge challenges of moving up the Code for Sustainable Homes.”
Right move on planning appeals
The government has indicated that it will not pursue the introduction of Local Member Review Bodies (LMRBs) through the Planning Bill demonstrates that it is actively listening to the concerns of the sector, according to the Royal Town Planning Institute (RTPI).
Housing minister Caroline Flint told parliament during the Planning Bill debate that: “We need to consider whether, given the large number of planning reforms that we are asking local planning authorities to implement, it is also right to ask them to focus on the initiative.”
The Planning Bill proposes the creation of LMRBs to hear local residents’ appeals against planning permission refusals, a function that is currently carried out by the Planning Inspectorate.
After consulting widely with its members the RTPI advised the government that introducing LMRBs would put significant strain on the resources of local authorities.
It would also endanger the independence and impartiality of the appeals process because it would effectively mean that appeals would be heard by the same body, which rejected the original application.
RTPI secretary General Robert Upton said: “We are pleased the government has listened to the concerns of the sector and shown a willingness to reassess the introduction of Local Member Review Bodies.
“It is our view that, while well intentioned, the introduction of LMRBs would present real practical difficulties for local authorities who would have to find extra resources to administer the appeals process.
“We were also concerned that the proposed system had the potential to compromise the independence and impartiality of the appeals process and undermine public confidence in the planning system.
“The indication from the Minister that the government will not pursue LMRBs is very welcome and we are confident that the prospect of their introduction will be extinguished before the Planning Bill reaches the Lords,” General Upton went on to say.
For further general information, visit the RTPI website at www.rtpi.org.uk.
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