With the news that the Government is proposing to retain the extension to part J of the Permitted Development Order, and the new Housing and Planning Bill recently introduced to Parliament; we believe that this is the beginning of a very different kind of property market in the UK.
The extension to part J of the Permitted Development Order enabled B1 Offices to be converted to C3 residential properties without the need for planning permission, affordable housing or development gain compensation (CIL or s.106). Introduced for a short period of time, and then a further temporary extension, the move to make it permanent will see some very significant advantages for developers and homebuyers all over the country.
The publication of the new Housing and Planning Bill working its way through the Commons, marks “the start of a national crusade to transform generation rent into generation buy” according to Housing Minister Brandon Lewis. If approved, it will have a significant effect on Right to Buy, discounted starter homes, Housing Associations and the Housing Corporation itself.
The Bill aims to get 1 million homes built by 2020. It will concentrate on developing failing commercial areas, as under the new legislation there will be automatic planning permission, in principle, on brownfield sites. For first time buyers, there will be attractive discounts. Homes will be offered to market at 80% of the value, with 75% of the actual worth of the property available to borrow. This will mean a very small deposit and a great investment to many.
The Bill also includes a new legal duty on councils to guarantee the delivery of Starter Homes on all reasonably sized new development sites, and to promote schemes to first time buyers in their area.
This seems like some positive news for the UK’s property industry, likely to calm the housing crisis, keep interest rates low and get more people buying their own homes. As Britain drops behind France for the first time ever for home ownership, and as 86% of people aspire to own their home, this could not come at a better time for the country.
Are you ready to invest in a property? Have some land that would benefit from development? Talk to us today to find out more about how we can help you.