Housing market

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Cornish second home policy is 'pushing up prices'

Tamsin Melville

Political Reporter, BBC Radio Cornwall

There's a call in St Ives for a review of the policy that restricts newly-built homes to people living in them full-time.

Eighteen months since being introduced, one estate agent says it's "pushing up prices" and no new affordable homes have been built.

It comes as Mevagissey has become the fifth place in Cornwall to adopt the clause as part of a local housing plan. It held a referendum on Thursday in which 90% of those who voted were in support.

Steve Cross, from Cross Estate Agents in St Ives, says a "comprehensive review" needs to take place.

But supporters of the second homes plan like St Ives town councillor, Rita Lait, says it's too early to judge...

Homes have become 'less affordable'

Ryan Morrison

BBC News Online

Homes in Jersey have become less affordable over the past five years according to a government survey.

The Jersey Housing Affordability Index found a family earning an average mean net income could only afford a mortgage on an average priced one or two bedroom flat.

Income
States of Jersey

It found that the average two bedroom house was about six times the average household income and the average three bedroom house was eight times income.

The survey found deposits could also prove to be a barrier for families looking to purchase a house.

Survey finds families 'can't afford to buy a house'

Ryan Morrison

BBC News Online

Families in Jersey are not able to afford a mortgage on any type of house if they are earning the average income, according to figures from the latest household affordability survey.

The survey examines whether a working household with the average income is able to purchase a property.

It found that families could only afford a one or two bedroom flat on the mean average household income.

The survey found that:

  • A one bedroom flat was about three times the average income
  • A two bedroom flat was five times the mean income
  • A two bedroom house was six times the average income
  • A four bedroom house was about 12 times the average income

'Positive' growth for homes market

For Sale signs
PA

The number of homes coming on to the housing market is showing signs of positive growth for first time in more than two years, surveyors have reported. For the first time in 27 months, the overall balance of surveyors seeing the supply of new homes growing rather than shrinking has turned positive.

A net balance of 5% reported seeing the flow of properties coming to market increasing rather than falling in May. The Royal Institution of Chartered Surveyors' market survey also found that, while the flow of houses coming on to the market has increased marginally, average stock levels on estate agents' books across the UK was still close to an all-time low, at just over 42 properties.

Rics said: "It therefore remains to be seen whether the increase in May truly marks the beginning of supply pressures easing."

Profits squeeze at housebuilder Crest Nicholson

Housebuilding
Getty Images

Half-year profits at housebuilder Crest Nicholson have slipped 2% to £74.8m, and the company has warned that profit margins are set be squeezed thanks to a combination of flat house prices and rising construction costs.

For the six months to 30 April, revenues rose 13% to £473.8m. The number of private homes it delivered rose 11%, with the average price up 5% at #439,000.

Crest said that housing market sales volumes "continue to be generally robust" across its main operating areas.

However, it added: "Sales at higher price points will continue to be impacted by a slow second-hand market and this is likely to restrain volume growth in this segment of the market in the near term, as well as impacting on overall pricing gains.

"As a result, operating margins for next year are expected to be at a similar level to this year, at around 18%."

Shares in Crest Nicholson were down 5.6% in early trading.

Fastest-selling £1m homes outside London include Bristol

Homes in Bristol
PA

Property website Rightmove has said the fastest selling £1m-plus homes in Britain are outside London.

Cambridge was at the top of the list, but Bristol is in the top five. The others were Edinburgh, Harpenden and St Albans.

In Cambridge it only took 45 days to secure a buyer for a seven-figure-plus home.

The statistics come after BBC research revealed sales of £1m-plus homes rose to a new high in England and Wales last year.

A total of 16,119 property sales for £1m or more were completed in 2017, up 5.4% from the previous high in 2016.

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