Tag: housing

New Bill to ‘level up’ the nation

UK Government introduces plans to transform struggling towns and cities, supporting local leaders to take back control of regeneration

  • Levelling Up Missions, such as eradicating child illiteracy and closing gaps in life expectancy and living standards, to be enshrined in law
  • Local communities get extra powers to tackle scourge of boarded up shops and empty homes
  • Legislation to underpin biggest shift of power from Whitehall in modern times

The government has today (11 May 2022) introduced plans to transform struggling towns and cities, supporting local leaders to take back control of regeneration, ending the blight of empty shops on their high streets and delivering the quality homes that communities need.

The Levelling Up and Regeneration Bill will enshrine in law the government’s commitment to long-term missions to spread opportunity, drive productivity and boost local pride in every corner of the country.

Levelling Up Secretary Rt Hon Michael Gove MP said: “As a country, we need to be firing on all cylinders. That is why we must level up the UK; spread prosperity and opportunity, and make sure everyone can share in our nation’s success.

“This Bill puts in place the reforms we need to level up. It enshrines our levelling up missions in law, which will shift resources and focus throughout this decade to the parts and people of the country who need it most. It enables every part of England which wants a London-style mayor to have one. It empowers local people, not the big developers, to take back control of regeneration in their community.

“It shifts power out of Whitehall by giving local leaders the powers they need to tackle the blight of empty shops on high streets and to regenerate their communities. This is underpinned by a firm belief that by far the best placed people to level up communities are the people who live there.

“We want everyone to be given the opportunity to stay local but go far.”

Levelling Up

The government’s defining mission is to level up the UK; to increase and spread prosperity and opportunity across the UK, and break the link between geography and destiny. The Bill puts the legal foundations needed to deliver this mission in place, so that all parts of the country will be able to share equally in our nation’s success.

Measures include:

  • Creating a legal duty for the government to set and report on a number of missions for levelling up the country.
  • These missions will include: closing the gap in pay and productivity between the richest and poorest areas, effectively eradicating child illiteracy and innumeracy, closing gaps in healthy life expectancy, getting the rest of the country’s transport connectivity much closer to the standards of London’s, and making sure everyone has a local community they can be proud of.
  • The deadline for each mission is 2030, but the Levelling Up Bill will create a duty for the government to report on progress annually.
  • The legislation needed so that every part of England that wants a strong devolution deal can have one.
  • Enabling more areas to have the kinds of devolved powers which currently only the largest cities enjoy, helping drive improvements on local priorities such as transport and skills.
  • New provisions on council borrowing to protect taxpayers’ money while enabling local areas to make much needed investment.

Regeneration

The Bill will also directly give local leaders the powers they need to regenerate their communities, and transform their high streets and town centres. A new infrastructure levy will see the big developers contribute more towards better local roads, schools, hospitals, and genuinely affordable housing. Communities will also receive a share of the Levy revenue raised – as long as they have a parish or town council – and we are exploring how this could be expanded.

Measures include:

  • New powers for local leaders to run High Street Rental Auctions, where they can auction off tenancies in shops that have been vacant for over a year. This will help to end the plague of empty shops that blight so many high streets.
  • Councils will also be able to double council tax on empty and second homes, ensuring everyone pays their fair share towards local services and boost levelling up.
  • The ‘al-fresco dining revolution’ will be made permanent, injecting new life into the high street through creating a sustainable process for communities, business and local authorities, making it permanently cheaper and quicker to get a licence for outdoor dining.
  • A new, locally set infrastructure levy, charged on the final value of property when its sold, will replace much of the broken S106 payments system. This will see the big developers contribute far more of the money they make from development towards building better local roads, rail, schools, hospitals, and more affordable housing.
  • Legislation to make it easier for councils to regenerate their town centres through Compulsory Purchase Orders, making the process quicker and easier to use.

Right homes in the right places

The Bill will also deliver new reforms to the planning system, ensuring new development is more beautiful, produces more local Infrastructure, is shaped by local people’s democratic wishes, improves environmental outcomes, and occurs with neighbourhoods very much in mind.

Measures include:

  • Local plans – the way in which councils set the vision for future development in their area and decide whether to give planning permission – will gain stronger legal weight and be made simpler to produce. Communities will have a major say in these plans giving them more opportunity to shape what happens in their areas. Currently 61% of councils do not have an up to date local plan, which leaves communities exposed to development on which they haven’t had a meaningful say.
  • A digitised planning system making plans and planning applications fully available on your smartphone.
  • Stronger protections for the environment in local plans, empowering councils to make better use of brownfield land and protect precious greenbelt land.
  • Local design codes will be made mandatory so that developers have to respect styles drawn up and favoured locally – from the layout or materials used, to how it provides green space.

The government has today also outlined a new deal for millions of renters in private and social housing.

By ending Section 21 evictions and extending the Decent Homes Standard to the private rented sector, all renters can expect a decent, safe, and secure home. At the same time, these measures deliver a fairer system for good landlords who can struggle to recover their properties when faced with anti-social behaviour or wilful non-payment of rent.

Details on further support for tenants in social housing will be unveiled later this year which will include a review of the Decent Homes Standard, new consumer regulation and regular inspections of the largest landlords. 

Further information

The planning measures have been informed by over 40,000 responses made to the government’s 2020 ‘Planning for the Future’ White Paper, and inquiry by the Housing, Communities and Local Government Select Committee.

In order to continue to support the hospitality sector, we will also extend the temporary pavement licence process for one further year while we seek to make permanent these provisions through the Bill, subject to Parliamentary approval.

Grants to transform derelict land

Some of Scotland’s longest standing vacant and derelict sites will be transformed into affordable housing, community gardens and places of enterprise and learning by awards from a £50 million programme.

Ten schemes will share more than £5 million from the low carbon Vacant and Derelict Land Investment Programme, driving regeneration and innovation while tackling climate change.

Successful projects include:

  • redevelopment of more challenging building plots to help deliver 133 net zero and affordable homes through the Edinburgh Home Demonstrator programme
  • installing heat pump technology to reduce carbon emissions for proposed commercial developments on vacant land at Magenta Business Park in South Lanarkshire
  • decontaminating and redeveloping former industrial land for social housing and outdoor pursuits near the Forth and Clyde Canal in the East Dunbartonshire village of Twechar
  • regenerating derelict land in east Greenock to create a Carwood Street Food Growing Project for local people in a less affluent area

Community Wealth Minister Tom Arthur said: “Derelict sites are often found in more disadvantaged areas and can hold back development of communities.

“This programme is delivering community regeneration and tackling climate change, in line with our national strategy to transform the economy and deliver sustainable and inclusive growth and a fairer society.

“At the same time as announcing these grants, we are opening the programme to projects seeking funding in 2023/24 and I look forward to building on the momentum generated by today’s investments.”  

Depute Chief Executive at East Dunbartonshire Council Ann Davie said: “This funding is a welcome contribution that will aid us in regenerating the derelict former industrial canal site in Twechar.

“The funding can be used for land acquisition, soil remediation, utilities and access infrastructure, which will allow the site to be developed for social housing.

“These new homes will help us to achieve the energy efficiency aims we have set out for the site as each will be built to Passivhaus standards, resulting in low heating bill for tenants.

“This project also complements the work we’re doing in partnership with Twechar Community Action on the adjoining site, which recently secured Scottish Government Regeneration Capital grant funding, to help in the building of a new Outdoor Pursuits Centre. This will offer opportunities and benefits to the local community as well as attracting more visitors to the area.

The low carbon Vacant and Derelict Land Investment Programme is now open for Stage 1 (2023-24) applications. More information can be found here:

Regeneration: Capital investment for regeneration – gov.scot (www.gov.scot).

The projects to receive funding from Stage 2 of the Vacant and Derelict Land Investment Programme:

Lead applicantProject TitleFor 2022/23For 2023/24For 2024/25Total Grant Recommended
City of Edinburgh CouncilGreendykes North affordable housing£623,713  £623,713
Clyde GatewayD2 GRIDS£664,000  £664,000
East Dunbartonshire CouncilTwechar Canal Regeneration Project£614,925  £614,925
Glasgow City CouncilHamiltonhill Green Infrastructure Project£924,911  £924,911
Glasgow City CouncilRuchazie Greening and Growing project£185,000£240,000£245,000£670,000
InverclydeCarwood Street Food Growing Project£69,500  £69,500
InverclydeHSCP Community Learning£990,000  £990,000
North Ayrshire CouncilAnnickbank Innovation Campus, Irvine Enterprise Area£400,000  £400,000
North Lanarkshire CouncilGlenmanor Greenspace£230,911  £230,911
West Dunbartonshire CouncilCommunity Food Growing – Former Bonhill PS£100,000  £100,000
  £4,802,960£240,000£245,000£5,287,960

Edinburgh’s private rents soar as the capital bounces back

Post-pandemic surge in demand sees rents hit record high

The appeal of living in the Scottish capital has been reignited, with new figures showing a resurgence in demand for city properties that has pushed rents to record highs.

New research from property letting portal Citylets, shows the average monthly rent in Edinburgh rose 14.2% year on year (YOY) to an all-time high of £1,214, well above the Scottish average of £896.

Figures also show that the average Time To Let (TTL) – the period a ‘for rent’ sign is displayed at the property – is just 16 days, lower than the Scottish national average of 18-25 days across one, two, three and four bedroom properties.

Thomas Ashdown, Managing Director of Citylets said: “City living is back. During the pandemic growth slowed in most cities and accelerated in surrounding areas.

“Now people are back to office working, at least at some level, and seem confident there won’t be any more full lockdowns. The appeal of the city lights appears to have endured some extreme disruption, it would seem.”

However, he pointed out that letting agents remain concerned about the supply of available properties in the private rental sector, with many landlords continuing to sell up while the market is buoyant – or to avoid the threat of increased regulation and the costs that will bring.

The Citylets quarterly report for the first three months of 2022 shows demand for rental properties across Scotland exceeded supply in both rural and urban areas. However, the numbers of available properties was slightly higher than the historic lows reported the last quarter of 2021.

By postcode Edinburgh’s rental hotspot for one-bedroom properties was EH16 (including Cameron Toll, Craigmillar, Liberton) where the TTL was only seven days, while the TTL for two-bedroom properties in EH14 (including Slateford, Longstone, Wester Hailes, Balerno) was an average of only nine days.

At the top end is the EH3 region (New Town, West End, Tollcross and Fountainbridge) which has the highest property prices throughout Scotland, averaging £1,001 for a one-bedroom, £1,482 for a two-bedroom and £1,923 for a three-bedroom property.

Mr Ashdown said: “Despite relentless economic worry and the conflict in Ukraine that will further impact on the cost of living, the market is very busy. People want to get on with life and make decisions now which may have been postponed in recent months.

“While there is slightly more supply of properties than there was at the end of last year, it’s not a widespread phenomenon and this is not something can always be addressed quickly. The consequence of that is, with no sign of demand reducing, rents may continue to rise throughout 2022.

“While it’s reassuring to see that cities are coming back to life, rent rises of this order are likely to prove problematic for many, given the ongoing cost of living crisis. This is not a discretionary purchase – you have got to have somewhere to call home. More choice in the sector and indeed more widely in housing would, of course, help.”

Charlie Inness, of Edinburgh letting agent Glenham Property said: “Edinburgh has moved from an oversupply of stock to one of a severe undersupply with high tenant demand and unprecedented activity levels.”

He added: “Properties are letting extremely quickly with multiple applications received for each listing. We do not expect the shortage of supply to change as investors are either exiting the market or are cautious of entering due to the uncertainty created by the Scottish Government’s proposals for increasing regulation and artificial control of the sector. Due to this, we expect upward pressure on rents to continue to the detriment of tenants.”

The figures highlighted in the quarterly report show that available properties were being snapped up rapidly in Edinburgh, with 39% of properties let within one week and 84% taking less than a month to be let.

Jamie Kerr, of Edinburgh’s Ben Property said: “Quarter 1 of 2022 has seen an extraordinary surge in demand across Edinburgh and strong rental levels are being achieved with a short time to let.

“However, while the market is extremely busy and properties are letting faster than ever, there is a worrying lack of supply across the board which should be a wake-up call for the Government.

“There needs to be more investment in social and build to rent housing, and a deeper understanding of the vital role played by the private rental sector, encouraging private landlords and investors, not discouraging them. Only this can redress the balance of supply and demand and calm rental levels accordingly.”

Citylets operate Scotland’s premier residential lettings site with over 50,000 properties per year from over 400 local agents. The Citylets quarterly rental report was launched in 2007 and has since become a respected guide for housing professionals including social housing and public policy makers.

The report and associated rental maps are available for download at Citylets Rental Reports.

Cruden Homes to hold public consultation on new Leith apartments

Edinburgh-based housebuilder Cruden Homes is to hold a digital consultation event on its exciting proposals to deliver much-needed housing in Leith.

Located on the site of the Edinburgh Carpet and Flooring Warehouse, on the corner of Salamander Street and Salamander Yards, the proposed development will aim to comprise 99 apartments.

Including a range of different sized apartments, the development will range from four to six storeys, with the added bonus of ground floor retail fronting onto Salamander Street. 

A web-based community consultation event, in line with Scottish Government Covid-guidelines, will allow the community to provide feedback on and shape the proposals.

This online public consultation event, where the development team will be available via a live chat function to answer any questions, will take place on Thursday 28th April between 3.30pm and 7.30pm at www.orbitconsultations.scot/salamanderstreet

Further information relating to the proposed development may be obtained at the above website, or if unable to view material online by contacting:

Email: salamanderstreet@orbitconsultations.scot

Address: Salamander Street Consultation, c/o Orbit Communications, 4 Queen Street, Edinburgh EH2 1JE. Tel: 0131 202 3259

The event follows extensive engagement locally with key stakeholders.

Commenting on these proposals, Rory Stephens from Cruden Homes said: “We are delighted to be bringing forward these exciting proposals for consultation with the local community.

“This ambitious scheme regenerates the current brownfield site, delivering much-needed sustainable housing, including affordable homes, as well as providing a retail offering on the ground floor.

“We’re keen to hear community views, allowing us to further shape and refine our proposals for the site, and would urge those able to do so to participate.”

Scottish house prices rise again in February to an annual 8.2%

  • Shortage of housing stock continues to support prices
  • Scotland’s monthly rate of 1.5% is highest since August
  • Private annual rental growth is at highest rate since records began, encouraging buy-to-let investment
  • Average Scottish House price in February 2022 is £218,702, a monthly increase of 1.5% & annual increase of 8.2%

Heat Map

Table 1. Average House Prices in Scotland for the period February 2021 – February 2022

Scott Jack, Regional Development Director at Walker Fraser Steele, comments: “Scotland continues to see record average house price growth with the average price paid for a house in February this year reaching £218,702 – a price £16,600 higher than at the same time last year. It continues the trend from January and, on a monthly basis, this means prices in February rose by 1.5% – the highest increase in a month since August last year.

“As a piece of context, in February this year, all the regions in England and Wales established new record average house price levels, but it is fair to say that the Scottish property market has robustly withstood one of the most seismic events in living memory in the past couple of years.

“The reasons for this strong performance remain constant across the UK. We are still seeing the results of people choosing to change the way in which they work and where they choose to do this. While inflation and interest rates are rising (albeit it at different paces), we still enjoy relatively low borrowing costs. The supply of desirable property remains constrained so there is a lot of competition for the most desirable property.

“It seems that the pandemic’s impact on our ability to spend, which includes disposable income for socialising and holidays, has meant people have saved for more fundamental things such as a house purchase. Also, the rise in house prices during the period means that existing homeowners have benefitted from an increase in the equity in their homes meaning they can move up the ladder.”

Commentary: John Tindale, Acadata Senior Housing Analyst

The February housing market

The average price paid for a house in Scotland in February 2022 was £218,702, which sets a record price for the country – this is the seventh occasion that this has happened in the last twelve months.

This price is some £16,600 higher than that seen in February 2021, indicating that prices have risen by 8.2% on an annual basis. This rate is also some 1.1% up on the 7.1% recorded in December 2021, with both January and February of 2022 having witnessed an increase in house prices.

On a monthly basis, prices in February 2022 rose by 1.5%, or around £3,200. This is the highest increase in a month since August 2021.

Figure 1. The average house price in Scotland over the period February 2020 to February 2022 with trendline

Scotland is not alone in seeing house prices continuing to rise. In February 2022, all nine GOR regions in England and Wales established new record average house price levels, although only Wales had an annual growth rate higher than that of Scotland, at 8.9%.

So what is causing this ongoing upward movement in prices, particularly at a time when many commentators had been expecting to see a slowing in the growth rate, as increased cost of living pressures begin to bear down on consumers?

As we reported last month, in general terms we are still living with the effects of the pandemic, and the “lifestyle” changes this has brought about – in particular the “Work from Home” edict has encouraged many to move to larger premises with outdoor facilities – the so-called “Race for Space”.

There is still high demand for such homes, but supply is limited, so there continues to be strong competition for the properties that do come onto the market, with resultant price increases.

Additionally, the ONS advises that private rental prices in Scotland have grown by 2.6% in the 12 months to February 2022, which is the highest annual growth rate for Scotland since records began in 2012.

If this figure looks low, we should point out that the ONS private rental index not only measures the change in newly advertised rental prices, but also reflects price changes for all existing private rental properties.

This increase in rental growth rates is encouraging some investors to consider purchasing buy-to-let properties, adding to the already buoyant demand for homes that currently exists.

Transactions analysis

Monthly transaction counts

Figure 2 below shows the monthly transaction count for purchases during the period January 2015 to February 2022, based on RoS (Registers of Scotland) figures for the Date of Entry. (February 2022 figures are based on RoS Application dates.)

The graph shows that of the eight years on display, all – bar 2020 and 2022 – have February as being the month with the lowest transaction count of the year.

This in part is a knock-on effect from the Christmas holidays, when estate agents are often closed from Christmas Eve to the New Year – with the Date of Entry on completion of the sale often taking five to six weeks from the date at which the property was first put on the market.

In part, it is also due to the reduced daylight hours at the turn of the year, which restricts would-be buyers from visiting prospective properties.

If we remove the pandemic-related years 2020 – 2022 from our calculations, then the average number of sales in February for the seven years 2013 – 2019 amounts to 5,340 transactions, compared to August, which has the maximum number of sales of any month at an average 9,368 transactions – a 75% increase on February.

Our monthly statistics also show that there is a seasonal variation in the prices being paid across the year, with February typically seeing a 2.5% reduction in the average price paid, and the highest prices typically being achieved in September/October when prices are some 2.0% higher than average.

Allowing for the five-to-six weeks’ time span from putting a home up for sale to the Date of Entry, this will mean that generally the lowest prices are accepted for a property in December / January, and the highest prices are often achieved in August / September. In our house price calculations, we adjust the data to take these known seasonal variations into account.

Figure 2. The number of sales per month recorded by RoS based on entry date (RoS applications date for February 2022), for the period 2015 – 2022. (Source: Registers of Scotland.)

Scotland transactions of £750k or higher

Table 2. The number of transactions by month in Scotland greater than or equal to £750k, January 2015 – February 2022

Table 2 shows the number of transactions per month in Scotland which are equal to or greater than £750k. The threshold of £750k has been selected as it is the breakpoint at which the highest rate of LBTT becomes payable.

Table 2 shows that there were 39 sales in excess of £750k during February 2022, and we anticipate that this number will increase as further sales for the month are processed by the Registers of Scotland. However, as discussed earlier, February typically has the lowest number of property sales in the year, so there should not be too much concern about the relatively low number of high-value sales that occurred in the month.

The seven authorities with the largest number of the 119 high-value sales that have been recorded to date in 2022 are: Edinburgh (59); Glasgow City (11); Fife (8); East Lothian (5); East Dunbartonshire (4); East Renfrewshire (4); and finally Perth and Kinross (4).

The 59 high-value sales in Edinburgh amount to 4.6% of the total 1,292 sales that have been recorded in the capital in 2022 to date. This compares to a figure of 1.1% to the end of February – which the 119 high-value sales represent – when compared to Scotland’s total number of 11,041 transactions recorded by the Registrar.

The high-value ratios for the remainder of the seven authorities listed above are – East Lothian 2.6%; East Dunbartonshire 2.4%; East Renfrewshire 2.1%; Perth and Kinross 1.3%; Fife 1.1%; and finally, Glasgow City 0.9%.

Local Authority Analysis

Table 3. Average House Prices in Scotland, by local authority area, comparing February 2021, January 2022 and February 2022

Table 3 above shows the average house price and percentage change (over the last month and year) by Local Authority Area for February 2021, as well as for January and February 2022, calculated on a seasonal- and mix-adjusted basis.

The ranking in Table 3 is based on the local authority area’s average house price for February 2022. Local Authority areas shaded in blue experienced record average house prices in February 2022.

Annual change

The average house price in Scotland has increased by some £16,600 – or 8.2% – over the last twelve months, to the end of February. This is a £1,300 increase over the revised £15,300 growth in prices seen to the end of January 2022, and represents approximately half of the annual average gross pay of those working in Scotland in 2020/2021.

In February 2022, 30 of the 32 local authority areas in Scotland saw their average prices rise over the previous twelve months. The two areas with price falls compared to one year earlier were Clackmannanshire and Aberdeen City.

In Clackmannanshire all property types, excepting terraces, saw a fall in their average values, but the authority has the lowest number of property sales per month of all the Local Authorities on the mainland, which tends to produce volatile movements in the average price, especially when measured in percentage terms.

In Aberdeen City, it is the average price of terraces and flats that have seen a fall over the last twelve months. However, in Aberdeen, there is a strong correlation between house prices and the price of crude oil, and as suggested last month, we anticipate that property values will begin to increase relatively soon, following the recent dramatic rise in oil prices.

The area with the highest annual increase in average house prices in February 2022 was the Orkney Islands, where values have risen by 28.6% over the year: however, like Clackmannanshire this statistic is based on a low volume of sales (13 transactions in the Orkney Islands in February 2022).

On the mainland, the highest rise in prices occurred in Inverclyde, up by 16.5% over the year, this statistic having been assisted by the February purchase of the second-highest priced home in Inverclyde of the last twelve months.

The property concerned is a five-bedroom detached home in Kilmacolm, located approximately 15 miles to the west of Glasgow, which sold for £1.45 million.

Monthly change

In February 2022, Scotland’s average house price in the month rose by some £3,200, or 1.5%, which is the highest increase of the last six months. The average price of a home in Scotland now stands at £218,702, which sets a new record level for the nation for the seventh time in the last twelve months.

In February 2022, 21 Local Authority areas in Scotland experienced rising prices in the month, the same number as one month earlier.

The largest increase in average prices in February, of 9.3%, occurred in East Renfrewshire. The price of all property types, except for flats, increased in East Renfrewshire in February, with the highest increase occurring in detached properties, up from an average £425k in January to an average £495k one month later.

These dramatic changes in price are frequently seen in February, due to the low overall level of sales in the month. In this instance, the average price for East Renfrewshire has been elevated by the purchase of the area’s most expensive detached property of the last twelve months for £1.95 million.

The property, which is located in Giffnock, is some 6 miles to the south of Glasgow centre and is less than half a mile from Whitecraigs railway station, with a direct service into Glasgow Central station, having a journey time of approximately 20 minutes. Giffnock is frequently referred to as being amongst the most affluent areas in Scotland.

Peak Prices

Each month, in Table 3 above, we highlight in light blue the local authority areas which have reached a new record in their average house prices. In February there are 18 such authorities, three more than in January. We can also add that Scotland itself has set a record average price in February 2022 – the second of the year.

Heat Map

The heat map below shows the rate of house price growth for the 12 months ending February 2022. As reported above, all but two of the 32 local authority areas in Scotland are reporting an increase in their house values over the last year. The two areas with negative growth are Clackmannanshire and Aberdeen City, where prices over the year have fallen by -2.8% and -0.9% respectively. The highest increase over the twelve months to February 2022 was in the Orkney Islands at 28.6%, followed by Inverclyde at 16.5%.

Comparisons with Scotland

Figure 3. Scotland house prices, compared with England and Wales, Wales, North East and North West for the period January 2005-February 2022

Figure 4. A comparison of the annual change in house prices in Scotland, England and Wales, Wales, North East and North West for the period January 2005–February 2022

Scotland’s Seven Cities

Figure 5. Average house prices for Scotland’s seven cities from December 2020–February 2022

Figure 6. Average house prices for Scotland’s seven cities February 2022

HUB and Bridges submit plans for Beaverhall Build-To-Rent development

Developer HUB and Bridges Fund Management (“Bridges”), a specialist sustainable and impact investor, have submitted plans for a residential-led development on Beaverhall Road.

The scheme will provide 205 Build to Rent homes, including 52 affordable homes, as well as creative workspace co-designed with locals and a new publicly accessible courtyard.

The proposals for Beaverhall Road will replace an existing warehouse building, with a contemporary scheme that maintains the site’s status as a hub for the local creative community, while bringing new homes to the area.

New public realm, Makers Yard, will sit at the heart of the scheme, acting as a focal point for both residents and commercial tenants, as well as neighbours. The scheme will also feature a large mural, displayed on one of the external walls.

As with all HUB and Bridges projects, people and planet are at the heart of the scheme. The new development makes efficient use of a brownfield city centre site and will deliver ‘tenure-blind’ homes for all ages, meaning all residents’ homes will be of the same high quality.

The plans exceed current Scottish sustainability regulations and include a communal air source heat pump to provide environmentally responsible heating for the entire building and a biodiverse green roof.

Designed by architects shedkm, the scheme has been developed in close collaboration with the local community and current businesses, with the ground floor creative workspace co-designed by the existing tenants.

Situated in Canonmills, the proposed development is within easy reach of the city centre, while benefiting from a sense of community created by the area’s existing amenities.

Situated within walking distance from both Stockbridge, close to the Royal Botanic Gardens, and Leith, which Time Out recently named one of the world’s coolest neighbourhoods, the HUB and Bridges scheme will allow residents to explore the best that the city has to offer.

Tom Valente, Development Manager at HUB, said: “We are hugely excited to have submitted plans for one of our first schemes in Edinburgh.

“We were struck by the vibrancy of the creative community in the area and knew immediately that we wanted to maintain that by placing studios and maker spaces at the heart of the development.

“The mix of Build to Rent and creative workspace is one that we know works fantastically well in terms of fostering a sense of community and making places where people choose to live.”

Artisan Real Estate’s Rowanbank Gardens nominated for National Climate Crisis Award 

 

Artisan Real Estate’s wholesale commitment to sustainable residential development across the UK has been recognised with its Edinburgh-based Rowanbank Gardens development being nominated for a prestigious national accolade geared to tackling climate crisis.  

Rowanbank Gardens, in the bustling Edinburgh suburb of Corstorphine, has been shortlisted for the best residential Climate Crisis Initiative for the 2022 RESI Awards, which recognises excellence in UK-wide residential property.  

The award nomination reflects Artisan’s continued multi-million investment in fossil-fuel free regeneration-based residential projects in key regional city centres across the UK – with major developments currently taking place in Edinburgh, Glasgow, Leeds and Bristol. 

Due for completion in 2023, Rowanbank Gardens provides immaculate environmental credentials creating a spectacular blueprint for low-carbon living. The industry-leading sustainable development, replacing a former care home on a brownfield site, is set to deliver 126 high quality apartments all with private gardens and balconies set around a shared courtyard garden in a well-connected central location. 

Welcoming the RESI Climate Crisis Initiative award nomination, Clive Wilding, Artisan’s Group Development Director said: “I am absolutely delighted that Rowanbank Gardens has won national recognition for its bold ambition to tackle the very real challenges of climate change which are currently facing our industry.  

“As a niche developer, Artisan Real Estate has always striven for improvement by creating a lower carbon footprint in the homes and buildings we create – not just in delivery but throughout their multi-generational lifespan. 

“Rowanbank Gardens is the latest manifestation of Artisan’s stated commitment towards a radical improvement in its development cycle to create the lowest possible carbon footprint in the residential buildings that the company creates. With innovations such as green roofs, it brings together smart energy-efficient design geared to achieving low to zero carbon ratings whilst responding to the rapidly changing requirements of home buyers and the wider community post-Covid.”

He added: “The evolution of Rowanbank Gardens shows that, as well as reducing urban sprawl by optimising the number of people living in well-designed sustainable homes in well-connected locations served by public transport, we are also pioneering the application of innovative technology to eliminate the use of fossil fuels whilst vastly reducing energy consumption.” 

Fuelled by a desire to transform brownfield city centre sites into sustainable, contemporary and low carbon homes developments, Artisan’s residential developments are creating a progressive residential blueprint which has a timely resonance for post-lockdown living across the UK.  

As well as Rowanbank Gardens, this has also helped shaped the delivery of the 179-apartment Canonmills Garden development, overlooking the Water of Leith to the north of Edinburgh’s city centre which is now nearing completion. 

The development has pioneered the integration of low and zero carbon generating technology, incorporating green roofs as well as a combined heat and power system helping to support building energy loads whilst charging electric vehicles, reducing both building and transport CO2 emissions.  

Artisan is also delivering the Kirkstall Place development in Leeds, providing 263 family homes designed to meet low carbon and non-fossil fuel standards together with substantial amounts of external space, providing a wide range of biodiversity. 

The winners of the 2022 RESI Awards will be revealed on Wednesday 11th May at a live ceremony in London.  

For more information on the awards, visit:

https://www.resiawards.com/resiawardslive/en/page/home 

Adopted Leither starts new chapter on Edinburgh waterfront

A BRAND NEW four-bedroom townhouse on the capital’s enviable waterfront has transformed a man hailing from the west of Wales into a Leith local.

John Evans, stumbled across the Waterfront Plaza development by Cala Homes (East) when out on a walk and decided it was the best location for him to start a new chapter.

John moved to Edinburgh more than 25 years ago and has since fallen in love with Leith and everything it has to offer. He made the move to the highly desired Waterfront Plaza from his previous home in Trinity last year.

The Welshman has grown a close affinity to Leith, starting the charity LeithGives during the first lockdown with the aim of providing support to those in need during the pandemic – through local business, charity and community partnerships.

John said: “I love spending every day in the heart of Leith. I have everything I need around me and wouldn’t change it for the world. It’s so sought after for a reason.

“To now live exactly where I want to live and in the perfect home has been absolutely brilliant. I knew about Waterfront Plaza from my work on the board of the Leith Trust, however I never considered it as a potential home until I stumbled across it on a walk one day.”

November 2021 saw John make the switch from a five-bedroom Victorian house in Trinity to one of Waterfront Plaza’s modern four-bedroom townhouses. The townhouses at the development feature an expansive terrace, well designed interiors and Cala’s signature high specification and contemporary style.

One of the bedrooms in the four-bedroom property has been converted by John to a study from where he works from home and he is also in the midst of transforming his garden space into a bee-friendly area.

John says: “The home has been so easy to change and adapt to exactly what I am after. It’s been ideal to have my own study whilst the world gets used to hybrid working. I’m also keen to start my own bee-friendly garden and Cala were very helpful with all of that.

“There have been loads of other nice touches from Cala along the way. The team on site have gone above and beyond to help us transition into our new home.”

John has two sons who have also been enjoying their new home. Rhys, 21 works at the local pub, The Malt and Hops when he’s home from university and Bryn, 17, has been making full use of Leith’s transport routes to school and the city centre.

The family of three have been making the most of having Leith’s vibrant food and drink scene on their doorstep too – regularly visiting the range of local bars, cafes and restaurants.

John added: “I’m surrounded by options which makes daily life so much better. As well as great food spots like Café Domenico’s and everything Leith Shore has to offer, I’ve become a keen local of The Malt and Hops which has great music during the Leith Jazz and Blues Festival.

“It is a great feeling to be part of such a thriving, vibrant community.”

Ranging from £305,000 — £540,000, there are still a host of different home types available at Cala’s Waterfront Plaza development for homebuyers seeking both life by the water and the hustle and bustle of the city centre.

Ranging from stylishly designed two and three-bedroom apartments to penthouses and spacious townhouses, Waterfront Plaza has a number of options available for homebuyers seeking a capital life in Leith.

To watch John talk about his new townhouse, click here.

To watch John talk about life at Waterfront Plaza, click here.

For more information on Waterfront Plaza please visit: 

https://www.cala.co.uk/homes-for-sale/scotland/edinburgh/waterfront-plaza-leith/

Walker Fraser Steele: Scottish House Price growth picks up in January

  • Scotland’s monthly rate of 1.2% is highest since August
  • Fife sees £4 million sale
  • Shortage of housing stock continues to support prices
  • Average Scottish house price now at £215,388, monthly rise of 1.2%, 7.6% up annually

Scott Jack, Regional Development Director at Walker Fraser Steele, comments:

“Our report this month shows that the average house price in Scotland has increased by some £15,200 – or 7.6% – over the last twelve months, to the end of January this year. This is an £800 increase over the revised £14,400 growth in prices we witnessed to the end of December last year. Of equal significance is the fact that this heralds a reverse to the slide in the annual rate which had started over the previous three months. While the growth rate here in Scotland trails that of Wales by 1.4%, it is still higher than the average 7.3% in England and Wales overall. The Scottish market is continuing to perform well.

“What we are seeing in this return to growth is that people are still living, moving, buying and selling in the aftermath of the pandemic and the “lifestyle” changes it brought about. Working from Home has encouraged many homebuyers to move to larger premises which can accommodate a different way of living and working. Many have been in search of more outdoor space too – the so-called “Race for Space”. The issue here is that while there is a high demand for such homes, the supply is limited, so there continues to be strong competition for the properties that do come onto the market, with robust price increases as a result.”

Commentary: John Tindale, Acadata Senior Housing Analyst

The January housing market In January 2022, the annual rate of house price growth increased to 7.6%, from 7.3% in December 2021. This represents an increase of £15,200 over the average price of a property at the end of January 2021. The increase in the growth rate brings about a halt to the downturn in rates observed over the previous three months.

Over the last 12 months, there are six Local Authority Areas which between them have accounted for just under 50% of the £15,200 increase in the average price, on a weight-adjusted basis. (A weight adjusted basis takes into account both the change in the authority’s own average price as well as the number of sales involved.) The six areas are – in order of prominence – Fife, the City of Edinburgh, Glasgow City, South Lanarkshire, Highland and West Lothian.

On a monthly basis, prices in January 2022 rose by 1.2%, or £2,572, with Scotland’s average house price now standing at £215,388. This is the highest increase in a month since August 2021, and sets a further record average price for Scotland – providing an additional indication of the general upward pressure on prices.

Figure 1. The annual rate of house price growth in Scotland over the period January 2020 to January 2022 with trendline

So what is causing the ongoing upward movement in prices? In general terms, we are still living with the effects of the pandemic and the “lifestyle” changes this has brought about – in particular the “Work from Home” edict has encouraged many to move to larger premises with outdoor facilities – the so-called “Race for Space”. There is high demand for such homes, but supply is limited, so there continues to be strong competition for the properties that do come onto the market, with resultant price increases.

Last month we showed that the highest rise in property prices over the last ten years had taken place during the pandemic, with the Lothians being the top three authorities in terms of price growth. We suggested this was due to many purchasers looking for a home with plenty of space outside of Edinburgh city centre, but still remaining within reasonable commuting distance of the capital.

Transactions analysis

Monthly transaction counts

Figure 2 below shows the monthly transaction count for purchases during the period January 2015 to January 2022, based on RoS (Registers of Scotland) figures for the Date of Entry. (January 2022 figures are based on RoS Application dates.)

The fall in the number of transactions at the onset of the pandemic in March/April 2020 is clearly visible – the March 2020 property sales that actually took place would largely have been agreed prior to the commencement of the first lockdown in Scotland on 24 March 2020. However, what is also clear is the recovery in sales during the summer of 2020, followed by an acceleration from August 2020 to a peak of 13,055 transactions in October 2020 – the highest number in a single month since November 2007.

It can be seen too that sales per month from September 2020 to March 2021 were at higher levels than the previous five years, as the market played ‘catch-up’ with the transactions lost during the spring and early summer months. It also benefitted from the LBTT tax reductions available from 15 July 2020 to 31 March 2021 (inclusive).

Noteworthy as well is the spike in sales in March 2021 – as the tax reduction expiry date approached – as is the fall in sales in April 2021, indicating the extent to which buyers had managed to bring forward their purchases into March 2021 to take advantage of the LBTT tax savings.

Sales volumes from May to December 2021 look roughly on a par with, or slightly ahead of, previous years, perhaps suggesting that the market has now returned to its pre-pandemic transaction levels.

Comparing total sales in 2020 with those of 2019, there was a 13% fall in the overall size of the market. However, looking at the total number of transactions in 2021 and comparing them to 2019 (2020 figures are distorted by the lockdown in the early stages of the pandemic), sales are up by 10%. 2021 had the highest number of transactions in a year since 2007

Figure 2. The number of sales per month recorded by RoS based on entry date (RoS applications date for January 2022), for the period 2015 – 2022. (Source: Registers of Scotland.)

Scotland transactions of £750k or higher

Table 2. The number of transactions by month in Scotland greater than or equal to £750k, January 2015 – January 2022

Table 2 shows the number of transactions per month in Scotland which are equal to or greater than £750k. The threshold of £750k has been selected as it is the breakpoint at which the highest rate of LBTT becomes payable.

Table 2 shows that there were 54 sales in excess of £750k during January 2022, and we anticipate that this number will increase as further sales for the month are processed by the Registers of Scotland.

In 2021, total sales in excess of, or equal to, £750k amounted to 1,097 in number – and we expect this total to reach 1,100 as RoS continues to process late registrations for the year. This is the largest number of high-value sales that we have recorded in a year.

The reasons for this dramatic increase in top-end sales in 2021 are, as previously discussed, partly to do with the change in preference for larger properties. During the pandemic the nation was instructed to “work from home”, which established an appetite for larger properties with areas which could be used as offices and ideally with outdoor facilities – the “race for space”. Home movers and office workers were thus encouraged to look for premises which better suited their updated needs.

The process of moving home was additionally assisted by the existence of the record low interest rates, which made the purchase of a top-end property more affordable, as well as the tax savings associated with the LBTT holiday, available up to the end of March 2021, which encouraged the whole market to be more adventurous in its outlook.

However, the peak of the “pandemic market” appears to have occurred in September 2021 (see Figures 1 and 2). As a result, it can be seen that in each month subsequent to that date, the number of homes purchased with a value of £750k or above, has been less than that recorded in the same month of the previous year.

Local Authority Analysis

Table 3. Average House Prices in Scotland, by local authority area, comparing January 2021, December 2021 and January 2022

Table 3 above shows the average house price and percentage change (over the last month and year) by Local Authority Area for January 2021, as well as for December 2021 and January 2022, calculated on a seasonal- and mix-adjusted basis. The ranking in Table 3 is based on the local authority area’s average house price for January 2022. Local Authority areas shaded in blue experienced record average house prices in January.

Annual change

The average house price in Scotland has increased by some £15,200 – or 7.6% – over the last twelve months, to the end of January. This is an £800 increase over the revised £14,400 growth in prices seen to the end of December 2021, but importantly stops the slide in the annual rate which had been evident over the previous three months. Scotland’s growth rate now trails the Wales rate of 9.0% by 1.4%, but in percentage terms is still higher than the average 7.3% in England and Wales overall.

In January 2022, 30 of the 32 local authority areas in Scotland saw their average prices rise over the previous twelve months. The two areas with price falls compared to one year earlier were East Renfrewshire and Aberdeen City. In East Renfrewshire, prices of detached homes have fallen from an average £440k in January 2021 to £415k in January 2022. Part of this reduction in the average price of detached homes in East Renfrewshire was due to a fall in the number of homes that sold for more than £750k – there were five such properties purchased in January 2021, but none in January 2022. As we reported last month, this is symptomatic of a general reduction in the purchase of high-value homes in Scotland during the final quarter of 2021, which is now extending into the first month of 2022.

In Aberdeen City the average price of flats has fallen by £5k over the last twelve months. However, in Aberdeen, there is a strong correlation between house prices and the price of crude oil, so we anticipate that property values will begin to increase following the recent dramatic rise in oil prices.

The area with the highest annual increase in average house prices in January 2022 was the Orkney Islands, where values have risen by 19.6% over the year. On the mainland, the highest rise in prices occurred in Fife, where average prices rose by 14.8%. Sales in the month included a magnificent apartment in the Hamilton Grand, overlooking the final hole of the Old St Andrews Golf Course, which changed hands for a reported £4 million. If you are an avid golf fan there is probably no better place in the world to live.

Monthly change

In January 2022, Scotland’s average house price in the month rose by some £2,500, or 1.2%, which is the highest increase of the last five months. The average price of a home in Scotland now stands at £215,388, which sets a new record level for the nation for the eighth time in the last twelve months.

In January, 21 Local Authority areas in Scotland experienced rising prices in the month, compared to 19 in December. The largest increase in average prices in January, of 5.6%, was in Na h-Eileanan Siar. However, as often stated on these pages, Scotland’s Island groups tend to see volatile price movements, due to the low number of sales that take place each month (in this case 18).

On the mainland, West Lothian saw the largest increase in prices in the month, of 4.4%. All property types saw an increase in prices in West Lothian, with the largest contribution to the increase coming from detached homes. The increase in the average price of detached homes was helped this month by the purchase of a resplendent four-bedroom property for £835k, located in Westfield, Bathgate, some fifteen miles to the west of Edinburgh. As mentioned earlier, the Lothians tick all the boxes in terms of ‘pandemic living’, with plenty of space, large properties and a relatively easy commute, if required, into Edinburgh.

Peak Prices

Each month, in Table 3 above, we highlight in light blue the local authority areas which have reached a new record in their average house prices. In January there are 15 such authorities, one more than in December. We can also add that Scotland itself has set a new record average price in January 2022 – the first of the year.

Heat Map

The heat map below shows the rate of house price growth for the 12 months ending January 2022. As reported above, all but two of the 32 local authority areas in Scotland are reporting an increase in their house values over the last year. The two areas with negative growth are East Renfrewshire and Aberdeen City, where prices over the year have fallen by -2.5% and -1.4% respectively. The highest increase over the twelve months to January 2022 was in the Orkney Islands at 19.6%, followed by the Shetland Islands at 16.6% – on the mainland it was Fife that was top with price growth of 14.8%.

Comparisons with Scotland

Figure 3. Scotland house prices, compared with England and Wales, Wales, North East and North West for the period January 2005-January 2022

Figure 4. A comparison of the annual change in house prices in Scotland, England and Wales, Wales, North East and North West for the period January 2005–January 2022

Scotland’s Seven Cities

Figure 5. Average house prices for Scotland’s seven cities from November 2020–January 202

Figure 6. Average house prices for Scotland’s seven cities January 2022

ENDS

Over 80% of tenants satisfied with renting, according to new research

Most people renting their home in the private rented sector are happy with their property and landlord, according to new research from independent think-tank the Social Market Foundation.

The Social Market Foundation found that – contrary to some narratives suggest renting is an inherently unhappy experience – a majority of people who rent from a private landlord are content with what they get for their money.

In an SMF survey of renters, 81% said they are happy with their current property, and 85% said they are satisfied with their landlord.

The greatest source of dissatisfaction among tenants is with “being a renter”, though only a minority of renters (34%) said they are dissatisfied with this status. The SMF said that this suggests that where people are unhappy in the private rented sector it is not about their living circumstances, but about the fact of having to rent rather than own a home.

The SMF findings are contained in a report on the future of the private rented sector which is published today. The report was sponsored by Paragon Bank. The SMF retained editorial independence.

The SMF said despite renters’ current views of renting, major trends in housing over the coming years mean that several policy changes are needed to ensure the rented sector continues to work well for tenants.

Only half of renters expect to leave the private rented sector in the next 15 years, suggesting that significant numbers will remain renters for long periods. Among them, the SMF finds that 13% would be satisfied with long-term renting.

That will see the average age of tenants rising: by 2035, more than half of private renting households are likely to include someone aged 45 or older, the SMF forecast. Couples and families will also make up a rising proportion of renters.

The private rented sector has been under political scrutiny, with the UK Government’s Levelling Up White Paper promising “a secure path to ownership” and a crackdown on “non-decent rented homes”.

Labour, meanwhile, has promised to be the “party of tenants” and raised concern about quality, affordability, and security in private rentals.

The SMF’s research challenges some of the narratives around this policy agenda, and in particular, the assumption that private renting is unsatisfactory and exploitative for the typical renter.

At the same time, it acknowledges that a minority of renters have particularly negative experiences and so endorses measures expected to be in the rental reform white paper (due in spring), such as abolition of ‘no-fault’ evictions and introduction of a Decent Homes standard for rental properties.

The SMF’s key recommendation is to enable renters to build wealth while remaining in the private rental sector, addressing their number one concern: the financial opportunity cost of renting, which have prevented savings, for a deposit or later life needs.

Several innovative schemes could be implemented, including ‘deposit builder ISAs’ that offer a financial return on deposits, or ‘rentership’ models that offer tenants stakes in their building.

Other SMF recommendations to the UK Government:

  • Increase the stability of tenancy agreements – A large majority of renters support a fixed minimum contract length: 69% would be in favour of setting this at 24 months.
  • Giving renters more control over their homes – making it easier to keep pets or make reasonable alterations, such as to décor or energy efficiency.
  • Increase the accountability of landlords – Through a ‘Good Home, Good Landlord’ kitemark scheme, developed in consultation with renters to recognise landlords that offer good, and not just decent, accommodation.
  • Improve the standards of private rented properties – Offer tax incentives for landlords to invest in improvements that align with Good Home Good Landlord kitemark standards, including green investments.

Aveek Bhattacharya, SMF Economist and one of the report authors, said: “Dominant cultural narratives about the private rented sector paint a misleading picture. In contrast to the horror stories that get wide circulation, the majority of renters are satisfied with their living conditions and have decent relationships with their landlords.

“It is absolutely right that the Government should seek to help the minority with poor standard accommodation and unprofessional landlords.

“At the same time, it needs to think harder about what it can offer the typical renter – who is largely happy with their circumstances today, but has doubts about whether they want to keep renting long-term.”

“Giving renters more control over their homes – allowing them to keep pets or decorate would help. So would incentivizing landlords to make improvements to properties to make them good, and not just decent. But perhaps the biggest challenge is developing policies that can persuade renters that they are not missing out financial security and stability if they don’t own their home.”

Paragon Bank Managing Director of Mortgages Richard Rowntree said: “The outdated and tired cliches around privately renting need to be challenged and I welcome the findings from SMF’s report.

“In our experience, the vast majority of landlords seek to provide a good quality home and enjoy a healthy relationship with their tenants; the significant investment in private rented property by landlords has helped drive up standards over the past 15 years and today homes in the sector are generally newer, larger and more energy efficient than ever before.

“We always seek ways to improve the experience of renting further and welcome the recommendations contained in the report. People from all walks of life now call the private rented sector home and we must strive to create a sector that meets everybody’s needs.”

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