CLES / Newstart
North vs South: Council tax to increase by 5.1%
New government data shows households in the North East are set to pay £420 more for an average band D property than those in Greater London.
The Department for Levelling Up, Housing and Communities (DLUHC) have released new figures that illustrate that the average band D council tax set by councils in England for 2024/25 will be £2,171, which is an increase of £106 (5.1%) compared to the figure from the previous financial year.
In addition, the research also unveiled that the council tax requirement will be £41.2bn, of which £609m will be raised through the adult social care precept flexibility, and £783m will be gathered from parish precepts.
Currently in England, the cap on council tax is set at 4.99%, though this varies depending on the powers of the local authority.
Against this backdrop, data that was compiled by the County Councils Network (CNN) and published last month found that out of 136 county and unitary local authorities in England who have so far published their budget proposals, 128 plan on raising council tax by the maximum permitted – 4.99%.
However, the bad news doesn’t end there. The Chartered Institute of Public Finance and Accountancy (CIPFA) have completed some research of their own, which shows that households based in the North East will fork out £420m more for an average band D property in 2024/25 than those living in Greater London.
CIPFA said this is a ‘worrisome picture’, where poorer areas of the country pay more council tax than wealthier regions. Its survey of 215 local authorities found that the average band D council tax in Greater London will be £1,894 while in the Northeast it will be £2,315.
Commenting on the news, Rob Whiteman, CEO of CIPFA, said: ‘In the absence of long-term funding, the rise in council tax is an example of the government’s presiding over a failing funding system.
‘With central government prioritising cuts in taxes and consequent spending cuts, this places more burden on councils to increase the level of council tax by the maximum allowed at a time and many residents will see a reduction in the level of service provided.’
Within its survey, CIPA reported, with the exception of Greater London, that band D council tax for all areas of England now exceeds £2,000.
Echoing a similar tone to Whiteman, Iain Murray, director of public financial management at CIPFA, has also expressed his frustration: ‘It is concerning that in some places, the funds raised from a rise in council tax will still not ensure proper maintenance of public services. The continuous council tax gap between London and the rest of the country further reflects the profound regional inequalities that exist.
‘With the public sector model crying out for systematic reform, CIPFA’s council tax survey leaves us asking: What is the role of local government? What do we want our public services to provide for us? And how do we fund this?’
Image: The New York Public Library
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Developers yet to begin cladding repairs on unsafe buildings, research shows
The latest statistics from the Department for Levelling Up, Housing and Communities (DLUHC) show that repairs have not started on 58% of dangerous structures.
As of December 2023, the government data revealed that 3,839 buildings had been identified with unsafe cladding. Of those, 1,608 had started or finished remediation works with 2,231 yet to start work.
In addition, the figures include remediation progress on high-rise (18 metres plus) buildings in height, as well as those identified with dangerous cladding of mid-rise (11-18 metres) height.
Government figures show that as of 31st January 2024, work had begun on a mere 42%, or 624, of the 1,500, 11 metre-plus buildings developers have committed to remediate themselves or pay to fix, while work has been completed on just 307 buildings.
According to the figures, at the end of February, over 4,000 residential buildings 11 metres or taller had been found as having unsafe cladding – up by 120 since January.
However, on a more positive note, the overall number of buildings where remediation work is said to have started or is already completed, has more than doubled since the end of February 2023.
News of such slow progress being made has come as a shock, as the government began cracking down on fixing unsafe buildings following the tragic Grenfell fire incident. In November 2022, the Medium Rise Scheme (MRS) was announced – which is now known as the Cladding Safety Scheme – in a bid to financially support applications for buildings where the applicant is unable to afford to carry out the work themselves or feels that it is not their responsibility to do so.
Only one person or organisation can be legally held accountable for a building’s external repair.
Those who can be responsible include:
- The building’s freeholder or head leaseholder
- A registered provider of social housing
- A management company
- A right to manage company – these organisations are formed by qualifying leaseholders who manage the building or self-contained part of a building in line with the Commonhold and Leasehold Reform Act 2002
Speaking in April 2022, when over 30 housebuilders signed a cladding pledge, housing secretary Michael Gove said developers have ‘nowhere to hide’ when it came to paying to fix cladding on buildings they built or owned.
Against this backdrop, the industry is also expected to pay around £3bn over the next 10 years through an expansion to the Building Safety Levy, on top of pledging to fix their own buildings.
Image: Ricardo Gomez Angel
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Cost-of-living: Government failed 300,000 children as they fell into poverty
Charities across the UK have accused the government of failing as it has emerged that 300,000 children fell into poverty at the height of the crisis.
Data that was published yesterday by the Department for Work and Pensions highlighted that at the height of the cost-of-living, amid soaring levels of hunger and food bank use, hundreds of thousands of children were forced into poverty in a single year.
Against this backdrop, the research also found that during 2022/23 – when inflation was at its 10% peak – 600,000 more people found themselves without any money.
Overall, during this time period, 12 million people were classed as being in absolute poverty. This is equivalent to 18% of the population, including 3.6 million children.
During this traumatising period, various charities were urging the government to provide better support for vulnerable people. Part of this included asking ministers to axe the two-child benefit limit which is seen as a driver of family hardship.
The research that was published yesterday, which can be found in full here, unfortunately shows the reality of what happens when the government fail to listen to campaigners who were trying to help. In addition to exposing harrowing poverty statistics, the data also showcases more extreme forms of hardship that families faced, including destitution. This is where individuals are unable to afford basic living essentials such as food, energy, bedding and clothing. Almost four million people experienced destitution in 2022.
Likewise, the research also outlined:
- More than two-thirds (69%) of UK children in poverty lived in families where at least one parent works, while 44% of children in lone-parent families were in poverty
- An estimated 2.9 million children were in deep poverty, meaning their income was at least 50% below the poverty line. Nearly half (46%) of all families with three or more children were in poverty
- Nearly one in 10 (8%) of pensioners struggled to eat regularly, pay essential bills or keep their home warm, up 2 percentage points year on year, and the first increase in material hardship measures among the over-65s since 2014
Alison Garnham, chief executive of the Child Poverty Action Group, said: ‘In a general election year, nothing should be more important to our political leaders than making things better the country’s poorest kids. But child poverty has reached a record high, with 4.3 million kids now facing cold homes and empty tummies.’
However, central government have claimed that their cost-of-living support packages, which were offered to struggling families and included one-off cash payments and support with energy bills for low-income households, had helped alleviate pressure on poorer families and prevented more than one million people falling into poverty.
The work and pensions secretary, Mel Stride, said that the ‘last few years have been tough’ but claimed falling inflation coupled with a range of tax and benefit measures would provide support to people on low incomes.
He said: ‘The plan is working, and we need to stick to it to deliver a brighter future and economic security for everyone.’
Nevertheless, Peter Matejic, chief analyst at JRF, said: ‘The annual poverty figures published today confirm that the government failed to protect the most vulnerable from the cost-of-living crisis. Absolute poverty, the Government’s preferred measure of poverty, has risen for the second year in a row. This is as big as we have seen for 40 years.
‘At the same time, there is little to celebrate in the slight fall in overall relative poverty levels. This is largely due to the incomes of middle-income households falling, rather than people on the lowest incomes being better off. This is also likely to reverse now that earnings are growing faster than inflation.’
‘The government’s short-term interventions to date haven’t stopped the incomes of poorer households from being swallowed up by the soaring cost of essentials,’ Peter said. ‘This is despite Jeremy Hunt speaking of his commitment to protect the most vulnerable in his Autumn Statement in 2022. These results show just how far away our social security system is from adequately supporting people who have fallen on hard times.’
Image: Tadeusz Lakota
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Will the Bank of England ever work towards lowering interest rates?
The Bank of England have decided to keep interest rates at 5.25% and have claimed cuts are ‘in play’. Housing experts have gathered to share their opinions on the news.
Yesterday, 21st March 2024, the Bank of England revealed they will be keeping interest rates at 5.25% despite the ONS revealing that earlier in the week inflation had dropped more than expected.
In a statement, governor Andrew Bailey, said: ‘In recent weeks we’ve seen further encouraging signs that inflation is coming down. We’ve held rates at 5.25% because we need to be sure inflation will fall back to our 2% target and stay there.
‘We’re not yet at the point where we can cut interest rates, but things are moving in the right direction.’
Financial markets are estimating that the first quarter-point cut in June will be when rates begin reducing. In addition experts are also forecasting that two more reductions will occur before the end of the year to around 4.5% amid a sharp fall in inflation over recent months.
Commenting on the news, Guy Gittins, CEO of Foxtons, said: ‘Homebuyers have been waiting patiently for an interest rate reduction and while it is largely expected to come this year, it seems as though they will have to wait a little longer still. The positive to take is that an air of stability has returned to the UK property market since rates were held at 5.25% last September and this has helped revitalise buyer activity levels in recent months.
‘In fact, it’s fair to say that the market has picked up the pace considerably and not only have we seen a 23% increase in sales enquiries versus this time last year, but there’s also been a 19% increase in viewings activity, and we reported on 5 March 2024 that we’d seen a 31% increase in the number of offers being accepted.’
In addition, Jason Ferrando, CEO of easyMoney, claimed that although the news has come as a bit of a blow, it was always to be expected.
‘Despite another surprise dip in inflation this week the Bank of England was always likely to maintain its slow but steady approach to managing the economy by keeping the base rate held at 5.25% for a fifth consecutive decision,’ Ferrando said. ‘While this will no doubt disappoint the nation’s homebuyers who have been eagerly anticipating a reduction in the cost of borrowing in 2024, it will add further stability to the property market, whilst also allowing those attempting to form a nest egg a further period of stronger returns on their savings.’
Directing the focus slightly away from homebuyers, Sam Reynolds, CEO of Zero Deposit, said landlords could also benefit from a decrease in high interest rates.
Reynolds said: ‘It’s not just homebuyers who were hoping to see rates come down today, landlords were also in need of some property market positivity to help revitalise their appetite for buy-to-let investment.
‘Not only have many been suffering at the hands of expensive variable rate products, but all too often they will have been doing so while only repaying the interest on their loan. As a result, they will have seen the cost of their mortgage increase by a far greater margin in the long run compared to those making full monthly repayment.’
However, CEO of Open Property Group, Jason Harris-Cohen, has claimed that although the Bank of England is working to ensure inflation rates keep coming down, ‘a rate cut’ is what the property market needs ‘to really move forward at pace.’
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Historic England research shows heritage boosts your wellbeing
Today, the public body have published their first-of-its-kind research which discovered the overall wellbeing value for people’s encounters of heritage is estimated to be worth £29bn.
The research, which can be found in the Heritage Capital and Wellbeing: Examining the Relationship Between Heritage Density and Life Satisfaction report, shows that like green spaces, historic areas within the UK can also benefit locals quality of life.
Heritage at Risk 2018.
All Saints Church, Leek Road, Hanley, Stoke-on-Trent, Staffordshire.
Interior, general view of the heated glazed enclosure in the north aisle.
Experts found that on average, life satisfaction improves to the value of £515 a year from living near heritage. This has been calculated using guidance from the Treasury on measuring and quantifying in economic terms the effect of policies on people’s lives.
In addition, the research also investigated the impacts of different types of heritage including listed buildings, scheduled monuments, protected wrecks, registered parks and gardens, battlefields, and world heritage sites.
The analysis illustrated that Grade II listed buildings, which represent 92% of England’s historic places on the National Heritage List for England, are the main drivers of life satisfaction increases. This implies that its being closer to a wealth of everyday heritage rather than experiencing rare, exceptional historic places, that is responsible for increasing higher life satisfaction.
Lord Neil Mendoza, chairman of Historic England, said: ‘For the first time we have robust economic evidence that heritage makes a significant contribution to people’s quality of life. We all value the role that green spaces play in ensuring wellbeing; this new ground-breaking research shows us that the everyday local heritage found in towns and cities across England plays a comparable and valuable role.’
‘This is the first research to quantify the wellbeing value of the very existence of heritage, whether or not people participate in heritage activities,’ Lord Mendoza said. For example, the value of £515 a year whether someone interacts with the small civic museum or village church, or not.’
The research has been launched today at The Wellbeing and Heritage Conference which is being held in Northampton. It was funded by the Department for Culture Media and Sport’s Culture and Heritage Capital Programme.
Adala Leeson, head of social and economic research at Historic England, said: ‘People often experience emotional connections with their local heritage, yet the link between heritage and wellbeing is frequently overlooked in economics. This innovative research uses economic techniques to demonstrate that heritage is not just a nice to have; it has significant, measurable impacts on our overall wellbeing.
‘As the first in a series of economic research projects produced by Historic England, funded by the DCMS Culture and Heritage Capital Programme and guided by HM Treasury’s Green Book, this research provides compelling economic evidence that demonstrates the value of heritage, and reinforces the importance of the advocacy and conservation efforts made by volunteers, community groups and the heritage sector to protect historic places.’
Image: Historic England
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‘Once-in-a-generation’ Liverpool Central station plans begin
Consultants based in the city have been invited to apply for a £1m contract by Liverpool’s City Region Combined Authority (CA).
The CA are looking to development a masterplan that will help address rail capacity issues and a regeneration vision to make the establishment and surrounding areas more appealing to the public.
Created 150 years ago, the underground station, which is classed as one of the busiest outside of London, acts as a huge gateway between the retail core of the city centre and the fast-growing Knowledge Quarter. This is why both the CA and Liverpool City Council are so keen to kickstart regeneration plans.
Once the contract, which is worth £1m, has been awarded, the CA will task the consultants with creating a strategy for the area surrounding the central station and identifying the ‘most appropriate’ delivery and funding models for upgrading the station.
Currently, Liverpool Central station is owned and operated by Network Rail, however in 2023 Metro Mayor, Steve Rotheram, signed a Memorandum of Understanding with the government. This set in motion a process that he hopes will lead to the CA taking control of the network, offering huge potential for regeneration projects.
Although this isn’t an essential aspect to ensure the central station regeneration project goes ahead, it is thought that it will be the decision-making and logistics more straightforward.
The tender brief for the project reads: ‘The rail network and land regeneration of Liverpool Central station and the surrounding area is a once-in-a-generation opportunity.
‘Liverpool City Region Combined Authority (LCRCA) is excited to be approaching the market to help it deliver an ambitious transport-led programme which will create multi-faced regeneration opportunities.
‘LCRCA and its partners Liverpool City Council are seeking to deliver transformational place-based regeneration using the redevelopment of Liverpool Central station as a foundational catalyst.’
The deadline for submissions for the latest tender is 18th April 2024.
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The economy appears to be thriving, but is it at the cost of interest rates?
Official figures have revealed that inflation has dropped to its lowest level in almost two and a half years, although economists warn interest rates are unlikely to follow suit.
This morning, data from the Office of National Statistics (ONS) showed that inflation rates dropped to 3.4% in February as a result of a slowdown in the pace of food and restaurant prices. The majority of economists had predicted that February’s figure would fall to 3.5% – the lowest since September 2021, when it was at 3.1%.
Against this backdrop, investors are suggesting that inflation will continue to fall throughout the next few months. However, despite this positive news, policymakers at the Bank of England are expected to leave interest rates unchanged when they meet tomorrow – Thursday 20th March.
The central Bank maintains an inflation target of 2% and is forecasting that CPI will fall below 2% in April and remain there for the majority of the summer.
Although high interest rates appear to be helping reduce inflation figures, they are causing people in the UK to suffer. According to data from the ONS that was published in 2023, around 35% of adults reported it was difficult to afford their rent or mortgage payments and an estimated one in 20 adults reported that they couldn’t afford food.
In addition, Daniel Austin, CEO and co-founder at ASK Partners, has claimed that keeping interest rates as high as they are, will have detrimental effects on people/businesses who are currently paying back bank loans.
‘These inflation figures indicate that the Bank of England is likely to hold interest rates for longer, especially with the green shoots we have seen in economic recovery, which should sustain inflation at this level,’ Austin said. ‘This is a positive sign for coming out of a mild recession but does mean that pressure will remain on those serving debt.’
Austin added: ‘As property loan extensions come to an end, borrowers will be forced to inject new capital, return assets to lenders or sell in a soft market. Those assets that end up on the market will help activate the cycle and provide opportunities for buyers with capital, who will see this as the best time to acquire assets at substantial markdowns.’
Reports of inflation rates reducing has also caused controversy to break out amongst political parties just months before a general election is due to be held.
Chancellor Jeremy Hunt has said that the falling figures are a sign that the Conservatives economic plans are working.
Mr Hunt said: ‘This sets the scene for better economic conditions, which could allow further progress on our ambition to boost growth and make work pay by bringing down national insurance as we work towards abolishing the double tax on work – but only if we can do so without increasing borrowing or cutting funding for public services.’
Nevertheless, his Labour counterpart, Rachael Reeves, has claimed that this country cannot afford another four years of a Conservative government. She dismissed Mr Hunt’s claim and said prices remained high while ‘the tax burden is the highest it has been in 70 years and mortgage payments are going up.’
Image: Joshua Rawson-Harris
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Plans unveiled for ‘UK’s first’ waste-to-energy carbon capture pilot
Due to launch in July 2024, Enfinium have unveiled plans to install the first pilot carbon capture system at a UK energy-from-waste plant.
This morning, the UK’s largest energy-from-waste operator announced they will be teaming up with technology specialist Hitachi Zosen Inova (HZI) to install a new carbon capture system at its Ferrybridge 1 energy-from-waste plant in West Yorkshire, where it is targeting the capture of up to one tonne of CO2 per day from the facility.
The pilot of this new scheme is expected to begin this summer and will run for 12 months.
Efforts to produce the new project showcase Enfinium’s determination to reach net zero goals. Confirmation of the plans are the organisation’s latest step in its ambitions to transform its operations by investing £800m in installing carbon capture and storage (CCS) systems at both its Ferrybridge 1 and 2 energy from waste plants, which the firm estimates could capture more than 1.2 million tonnes of CO2 every year.
The technology that has been supplied by HZI will be a scaled-down ‘containerised’ version of a CCS system which Enfinium said it hoped could be used at energy-from-waste facilities on a bigger scale.
With CCS installed, the two Ferrybridge projects could become one of the largest carbon removal projects in Europe.
‘Installing carbon capture technology on energy from waste facilities is the only way the UK can decarbonise its unrecyclable waste,’ said Enfinium’s CEO Mike Maudsley. ‘It also offers benefits including creating durable carbon removals, or negative emissions, at scale and generating reliable homegrown carbon negative power.’
Mausdsley added: ‘This ground-breaking partnership with HZI will allow us to test multiple capture techniques that could in the future be deployed across our facilities at scale.’
Following this, today’s announcement has also been welcomed by Lord Dominic Johnson, minister for investment and regulatory reform. He has described the project as ‘another win for our country and a huge step to enabling the decarbonisation of the UK’s unrecyclable waste.
‘The government is making sure the UK continues to be an attractive choice for green investment, creating jobs and opportunities across the country as we transition to net zero.’
The National Grid have described carbon capture as ‘a way of reducing carbon emissions, which could be key to helping to tackle global warming. It’s a three-step process, involving: capturing the carbon dioxide produced by power generation or industrial activity, such as steel or cement making; transporting it; and then storing it deep underground.’
Image: Enfinium
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Legal challenge in the works for ITV studios redevelopment
Campaign group, Save Our South Bank, have unveiled plans for a judicial review of Michael Gove’s decision to give the £700m project the greenlight.
Last month housing secretary, Michael Gove, approved demolish-and-rebuild plans for the redevelopment of the ITV South Bank studios. The scheme will create a two-block, office-led development reaching 25 storeys at its highest point.
However, the decision hasn’t been received lightly. A campaign group known as ‘Save Our South Bank’ (SOS) have claimed Gove’s approval ‘contains significant legal errors’. These include the South Bank being ‘threatened by two overbearing joined-together tower blocks’.
Currently, Lambeth Council, Sadiq khan – the Mayor of London – and CO-RE, developers based in central London, have given their permission for the project to progress, claiming a new office space, employment opportunities and an arts space will greatly benefit the community.
Against this backdrop, Michael Gove said that ‘the public benefits of the proposal outweigh the harm to designated heritage assets.’
In 2022, this scheme, which is set to be completed by Lendlease, was put on hold after Gove issued an Article 31 notice while the government considered whether the development should be ‘called-in.’
When the redevelopment was first revealed in 2021 by Mitsubishi Architects and CO-RE, some locals called it ‘a swollen deformity’.
Although the development has once again been given the go-ahead, SOS are continuing to argue that the development would cause ‘immense harm’ to surrounding national heritage sites and that the decision ‘flies in the face of policy regarding housing, reducing carbon and the circular economy’.
Rather than building new office spaces, SOS are stating the site should be used to build new, sustainable homes on in an attempt to address the capital city’s major housing crisis.
Campaigners are also claiming the redevelopment will generate 100,000 tonnes of carbon, prohibiting net zero goals.
Image: Shane Rounce
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‘Mission impossible’: Boroughs warn of social housing struggles amid budget cuts
Research that has been published today suggests social rent levels set by the government will leave London boroughs with a ‘black hole’ in their finances.
London Councils, the local government association for Greater London, have recently assessed the impact of social rent policy on boroughs housing revenue accounts – the budgets for managing their social housing stock, which includes paying for repairs and maintenance – and drawn a depressing conclusion.
From their research, over the next four years the cross-party group have outlined that there will be a gap worth £700m in social housing finances, despite the capitals ongoing efforts to address the major housing crisis that is currently flooding the city.
In 2023, London Councils estimated that one in 50 people in London are homeless and research from Greater London Authority, which was published in November 2023, found that 18% of private homes in the capital city failed the Decent Homes Standard, as well as 15% of social rented homes and 13% of owner-occupied properties.
However, people who are currently letting a social home are tragically set to struggle even further. At the beginning of this year the government confirmed a maximum permitted increase to social rents of 7.7% in 2024-25.
Although the government policy is to let social rents increase by a maximum of inflation plus an additional 1% (referred to as ‘CPI+1%), boroughs are warning that increases to their social housing costs will remain significantly above increases in their income as inflation on core expenditure such as building materials and repairs contractors is expected to continue outpacing CPI in the next few years.
Experts from Savills – a UK-based estate agency – have claimed that the overall impact of costs running higher than rental income will equate to almost £900m over 20 years.
Cllr Darren Rodwell, London Councils’ executive member for regeneration, housing & planning, said: ‘At a time when we desperately need more investment in social housing, boroughs are facing year after year of budget squeezes.
‘Social housing is vital to London’s social and economic success, and we want the sector to thrive. Boroughs are driving the improvements on standards, on safety, and on net zero that our tenants – but also the government – are so keen to see.’
‘We know cost-of-living pressures remain a major concern for many tenants and we support measures designed to help low-income households struggling with their finances,’ Cllr Rodwell said. ‘However, the government’s rent policy leaves us with a black hole of nearly £700m in our social housing finances over the next four years. Considering the massive pressures the sector faces, it feels like we’ve been left with mission impossible.’
Cllr Rodwell added: ‘Ministers must ensure boroughs get the resources we need to secure a better future for London’s social housing.’
The analysis that was published today incorporates longer-term research commissioned by the London Housing Directors’ Group from Savills.
Joanne Drew, co-chair of the London Housing Directors’ Group, said: ‘This analysis paints a bleak picture for boroughs’ housing revenue accounts and our ability to invest in social housing.’
‘From damp and mould through to building safety and decarbonisation, there are enormous challenges in the capital,’ Drew said. ‘Boroughs have great ambitions as social housing providers, but with our income failing to meet our costs and spending cuts needed to balance the books it becomes extremely difficult to secure the progress we all want to see.’
Image: Alex Tai
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Mortgage deals experiencing their shortest shelf-life in six months, research shows
New research from Moneyfacts has found that deals are typically on offer for just 15 days before being withdrawn.
According to Moneyfacts, a financial information service, the rates mortgage deals are being pulled is down from 28 days which was experienced at the beginning of February 2024. The research, which was published yesterday, has come as a shock as homeowners and buyers are currently enjoying the widest range of options in 16 years.
Jo Jingree, a financial advisor at Mortgage Confidence, told the BBC: ‘When I recommend a rate – or sometimes a choice of rates – to a client, it’s quite understandable and unsurprising that they want time to consider which one to apply for.
‘Some lenders only give a few hours’ notice of a rate change. That creates a situation which is less than ideal because taking out a mortgage can be a huge financial commitment that could impact them for years to come.’
The new research shows that between the beginning of February and March, average rates for two and five-year fixed deals increased to 5.76% and 5.34%, respectively.
Commenting on the news, Rachel Springall, finance expert at Moneyfacts, said: ‘Mortgage product availability was volatile during February as the average shelf life of a deal plummeted to just 15 days, a six-month low.
‘Lenders reacted to the charge in swap rates, lending to numerous repricing of fixed rate deals, no doubt making it a challenging situation for borrowers and brokers to keep on top of the changes.
‘The rate volatility led to a rise in both the overall average two- and five-year fixed rates, the opposite direction borrowers may well have hoped for after positive rate cuts recorded a month prior.’
However, on a more positive note, Ms Springall added: ‘It is worth noting that fixed rates remain lower than at the start of 2024, and there are still some decent options available for borrowers to compare.’
Experts found that mortgage choice recorded the biggest month-on-month rise in six months, with mortgage options for borrowers overall breaching 6,000 – the largest count in 16 years.
In addition, borrowers with just a 5% deposit will also find a rise in choice, as there are now over 30 deals on the market at 95% loan-to-value, the highest count since June 2022.
With fixed mortgage rates rising, Ms Springall said: ‘Borrowers may wish to wait and see whether these rates come back down in the weeks to come, but they must keep in mind that there is still an incentive to switch away from a Standard Variable Rate (SVR).
‘All eyes are on the Monetary Policy Committee and their future rate setting, in conjunction with the swap rate market, as to whether mortgage rates will come down this year.’
Image: t0nia-b
Contractors selected for a £4bn net zero project in Teesside
The decision has been hailed as a ‘transformational’ moment for jobs and Teesworks’ ambition to become the global capital for green energy innovation.
Net Zero Teesside Power (NZT Power) and the Northern Endurance Partnership (NEP) have selected contractors for engineering, procurement, and construction contracts with a combined value of around £4bn.
Amongst those selected is Liberty Steel – an organisation based in Hartlepool. Both NZT and NEP have added that this investment represents a signification opportunity for both the local and UK supply chain.
Tees Valley Mayor, Ben Houchen, said: ‘We are delivering the highly-skilled, well-paid jobs of the future as part of these world-leading developments that have established our area as a world-leading centre in the clean, green industries of the future.
‘This would be the single biggest investment in Teesside since the Imperial Chemical Industries (ICI). It cannot be understated the transformational economic impact this will have right across Teesside, Darlington and Hartlepool.
‘This £4bn investment will provide huge opportunities for our incredible local businesses and it is fantastic that our area is already benefitting through the selection of Liberty Steel.’
In addition, through these new contracts, work that began in 2023 to clear and prepare the former Redcar Blast Furnace site by Teesworks Ltd – the UK’s largest and most connected industrial zone, that is home to sustainable and low-carbon activity – for NZT Power is set to continue.
Teesworks chairman Chris Musgrave said: ‘This is another major milestone and shows the massive impact Teesworks is bringing to the local economy in terms of jobs and investment.
‘We’ve worked hard to prepare the site and now the contractors have been selected, it means we are moving forward at pace on this transformational project.
‘NZT Power is a key part our green energy drive, feeding into the net zero ambitions of existing businesses and becoming a prime asset for others looking to relocate here. This shows the speed at which we’re moving for the good of local people and the region.’
Siobhan McArdle, Tees Valley Business Board chair, said: ‘This is outstanding news for the region and delivers huge opportunities for our supply chains and local businesses.
‘We are working closely with businesses of all sizes to develop and deliver the support and skills development programmes they need so that they capitalise on the opportunities that come from this and other projects.
‘Businesses unsure about the opportunities that exist across the Tees Valley, both immediate and in the pipeline, should contact the Business Board directly for support and guidance.’
NZT Power – led by partners bp and Equinor – last month received planning approval by the secretary of state after a detailed process lasting more than two years. The company is aiming to create the world’s first gas-fired power station with carbon capture and storage capability and will help drive Teesside’s aim to become the UK’s first decarbonised industrial cluster as early as 2030.
Image: Jude Smart
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New regeneration project to begin in Doncaster
Councillors have claimed that visitors and locals in Doncaster will soon notice works taking place in the city centre in a bid to provide future investment opportunities.
Under new plans, the old Central Library is being removed from Doncaster city centre and is being replaced with a new, open and inviting public space that will hopefully supply better investment opportunities.
Back in November 2020 the old library closed its doors for the final time after having been open for 51 years, making way for the new Danum Gallery, Library and Museum, which officially opened in September 2021. The establishment is located just a 10-minute walk from Doncaster Railway Station and the bus station.
As a result of a new library space being opened, work to convert the old library building is due to start on Monday 18th March and the full demolition process is estimated to take around 14 weeks to complete.
The Mayor of Doncaster, Ros Jones, said: ‘This is the beginning of a new era for the Waterdale area, with a new space bringing with it a tidier, greener and fresher look which we believe will help attract bot further investment and help local businesses in the nearby area.
‘The Central Library was open for over 50 years in our city and is a historic building for many of our residents, but we are committed to regenerating and improving our city centre. With the new Danum Gallery, Library and Museum now firmly in place, we can commence the next phase of regeneration work in the Waterdale area to complement our civic and cultural quarter.’
The council have said that the work to transform this part of Doncaster, which is being funded as part of the National Levelling Up Fund scheme, will last until the end of September this year.
Image: Rumman Amin
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Heat pumps: ‘Boiler tax’ to be delayed until 2025
The government have announced that plans to fine manufacturers for installing gas boilers have been pushed back to next year.
Originally due to be implemented from 1st April 2024, ‘boiler tax’ has been created to encourage households away from traditional gas boilers and towards greener heating methods.
However, yesterday – 14th March 2024 – the government announced that they would be delaying the tax to make it easier for householders to qualify for a £7,500 heat pump grant, saying that cavity wall and loft insulation will no longer be mandatory.
Back in October 2023, Prime Minister Rishi Sunak unveiled that the amount a household can qualify for to help with heat pump installation costs would increase to £7,500. Since the uplift, the latest government figures show that new applications have remained nearly 60% higher than before the grant was so high.
Although, the advancement towards clean heating systems meant boiler manufacturers would have had to match, or substitute, 4% of their boiler sales with heat pumps, or face a £3,000 fine for each missed installation.
Nevertheless, the decision to detain the new fining system has cast concerns amongst environmentalists as they have said that it will not help the UK meet its emissions targets.
Doug Parr, policy director of Greenpeace UK, said: ‘This is yet another deeply damaging step backwards from the government on climate that puts our net zero targets in jeopardy and will leave the country paying more for its energy.
‘The whole point of the clean heat mechanism was that manufacturers and supply chains would be pushed into making change happen.’
In addition, Mike Foster, chief executive of the industry group Energy and Utilities Alliance has claimed that the plan to delay boiler tax is clearly a political tactic and not actually centred on trying to make the switch to greener heating systems.
‘The government have set a trap for a future administration, which according to the polls is likely to be Labour, knowing the boiler tax from 2025 is likely to be around £200,’ Foster said. ‘It could be up to Labour Ministers to decide whether to go ahead with the boiler tax, but they have been warned, the public don’t like it; it hits the least well off the hardest and the whole policy needs to be revisited before it harms British companies and British workers.’
On example of how businesses are affected is that, in anticipation of the boiler tax, manufactures have been increasing the costs of gas boilers by up to £120.
Image: Peter Herrmann
Student housing plans scrapped following MP controversy
Plans to create new student accommodation in Durham have been withdrawn amid criticism over its ambiguity.
In December 2023, Durham County Council approved plans to demolish existing buildings at Rowan Wood, in Clay Lane, and build 10 mixed-use homes for students. However, shortly after, the development faced significant local opposition after dozens of residents wrote to the council to object the plans, including the local MP.
Due to an increase in students attending Durham University, the applicant – Charles Blair – outlined plans to build the houses in multiple occupation (HMOs) in three blocks on land near Durham Archery Lawn Tennis Club. The scheme was divided by 11 bedrooms in the first block, 16 in the second and 38 in block three.
Although, MP for Durham City, Mary Kelly Foy, warned there were ‘clear breaches of several local and national policies’ with the plans as well as access issues due to how narrow Clay Lane is.
The Labour MP said: ‘Even cursory research of the current housing situation would have indicated that thanks to the ‘COVID surge’ Durham University has already exceeded these student numbers and is planning on reducing the level of students studying in Durham over the next few years.
‘The applicant has not expanded on this ‘evident’ shortfall of student housing in Durham, perhaps because this isn’t the case.’
Moreover, Ms Foy’s hesitation has been echoed by the City of Durham Parish Council. An objection letter from them read: ‘The description of development refers to HMO development, the planning application form refers to apartments and both the planning statement, housing needs statement and submitted floor plans refer to student accommodation/student bedrooms.’
In addition, Parish councillors have also warned how the development would impact the appearance of the site. A statement said: ‘The proposal would result in the almost complete redevelopment of the site with a dense, three storey development.
‘This would bring about a substantial change in the intrinsic character and appearance of the site.’
At this stage, the reason as to why the planning application was withdrawn remains unclear.
Image: Phong Nguyen
Work commenced on 10 new council homes in Littlemore
Oxford City Council have announced that construction has begun on 10 low-carbon council homes on a former depot site.
The battle to provide more affordable homes in the UK is ongoing. In addition to the government cracking down on tax rates for empty properties and second homes, Oxford City Council have also just announced that work has started on a set of new council homes.
Comprised of six semi-detached two-bedroom houses and four semi-detached three-bedroom houses, the new houses, which are being funded by Homes England, are expected to take around a year to complete.
When they are eventually finished, five homes will be let as council homes to people on the housing register and the remaining five will be sold for shared ownership by the council’s housing company OX Place.
By letting the new establishments as council homes, tenants will be able to pay around 40% of the rent a private landlord would charge for the same type of property.
The development will be known as ‘Youngs Way’ as Martin Young – vicar of the nearby church of St Mary and St Nicholas from 1951 to 1964 – is buried in the churchyard and his name was proposed by Littlemore Parish Council.
As well as helping to provide much-needed affordable housing, the properties are also set to reduce carbon emissions. According to recent figures, residential buildings are the biggest contributor to Oxford’s carbon footprint and account for 29% of the city’s emissions, which is why the new properties will be electrically heated – primarily by air source heat pumps.
Likewise, nine parking spaces with EV charging are set to built alongside the new homes and these will include three blue badge spaces and one car club space.
Overall, the development is expected to achieve an average 87% beyond government carbon reduction targets – exceeding the Council’s planning requirement of 70% beyond 2013 building regulations.
Commenting on the news Cllr Linda Smith, cabinet member for housing, said: ‘It’s great to see construction has started on 10 new council homes in Lanham Way.
‘Youngs Way will provide genuinely affordable homes for families on our waiting list and help people who would be priced out of Oxford onto the housing ladder.
‘The development will also be highly energy efficient, helping us meet our carbon reduction targets and providing comfortable, cheaper-to-run homes for the people who will live in them.’
Images: Jessop and Cook Architects and Becca Tapert
New energy service launching for people in the North East
Within the next few weeks a new free energy advice service is set to launch to help improve home energy efficiency across the region.
In a bid to lower energy bills and reduce carbon emissions, the North of Tyne Combined Authority have received £2m to help deliver free energy advice to people in the area. The money came from the UK Shared Prosperity Fund.
Part of the service includes a website which will feature energy saving advice and will provide residents with the option to create a report tailored to their home. From this, the report will provide recommendations on how to make their properties warmer, but by using less energy, which will save money in the long-run.
In addition, expert advisors will also be available to give over-the-phone advice to residents who don’t feel confident using technology to access the website.
Mayor Jamie Driscoll, said: ‘Warmer homes which are cheaper to run, who doesn’t want that?
‘We’ve got to reduce our carbon emissions. Supporting people to upgrade old buildings is one of the ways we’re doing it. It’s also about protecting people’s pockets and their health.
‘People who live in cold, poorly insulated homes are more at risk of falling ill and staying ill. Every £1 invested in retrofitting homes, saves the NHS 42p. We’re working with Energy Saving Trust who are experts in this area, to roll this our at scale across the North East.’
News of this service has come whilst the UK is arguably facing its worst ever energy crisis. According to government figures that were published at the start of this month, typical household energy bills increased by 54% in April 2022 and 27% in October 2022. Although lower wholesale prices have previously led to falls in costs, bills remain 59% above their winter 2021/22 levels.
Dame Norma Redfearn DBE, Chair of the Housing and Land Board, said: ‘This service will enable us to fulfil our commitment to deliver a large scale retrofit programme for the North East, that maximises local skills and supply chain opportunities, creating local jobs, whilst supporting our residents to reduce their energy bills.’
The new energy service is set to launch this Spring.
Image: Ryan Booth
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‘Doom loop’: Has the UK actually made it out of a recession?
New figures from the Office of National Statistics (ONS) found GDP grew by 0.2% in January, reversing a 0.1% contraction in December.
To put it lightly, Britain’s economy has endured a roller-coaster of a year, but new statistics that were published by the ONS this morning have granted a spark of hope. The findings show that Gross Domestic Product (GDP) increased by 0.2% at the beginning of this year which makes up for the 0.1% decrease in December 2023.
However, despite the increase showing positive signs that the economy is improving, experts are trying not to get too excited just yet.
Barret Kupelian, chief economist at PwC, has claimed the latest growth, which occurred as a result of a surge in January retail sales, was part of a ‘post-pandemic trend of the UK suffering from sluggish economic activity’.
Kupelian has acknowledged there were signs of recovery but claimed Britain has been trapped in a ‘doom loop’.
The news follows a 0.3% decrease that happened during October and December last year -the move officially plunged Britain into a technical recession after the economy had already shrank between July and September.
Commenting on the latest increase, Liz McKeown, ONS director of economic statistics, said: ‘The economy picked up in January with strong growth in retail and wholesaling. Construction also performed well with housebuilders having a good month, having been subdued for much of the last year.
‘These were partially offset by falls in TV and film production, lawyers and the often-erratic pharmaceutical industry.
‘Over the last three months as a whole, the economy contracted slightly.’
In addition, Chancellor Jeremy Hunt, said: ‘While the last few years have been tough, today’s numbers show we are making progress in growing the economy – part of which makes it possible to bring down national insurance contributions by £900 this coming year. But if we want the rate of growth to pick up more, we need to make work pay which means ending the unfairness of taxing work twice.’
Although, Rachel Reeves, Labour’s Shadow Chancellor, has claimed that a switch in political parties is the key to recovering Britain’s economy once and for all.
Ms Reeves said: ‘After 14 years of economic decline under the Conservatives, Britain is worse off. Rishi Sunak’s claims that his plan is working are already in tatters after Britain was hit by recession last year.’
Image: simon frederick
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New heat pump launched with smart home energy solution
A Swedish clean energy tech champion is working to take Europe off gas and accelerate the electrification of home heating.
Today, 12th March 2024, Aira have launched a new state-of-the-art heat pump in an attempt to draw households away from gas boilers and bring us one step closer to net zero targets.
The new contraption is equipped with a smart app which allows for users to control it at any time of the day from anywhere in the world. The system also features a setting that enables it to learn individuals routine to precision plan heating and hot water, should people forget to schedule them.
One of the main reasons for creating this new product comes from recent findings. As authorities have begun offering consumers a £7,500 grant to help with the costs of installing a heat pump, recent research from Aira found that 11% of adults in the UK are considering installing a heat pump this year, which equates to almost six million individuals. This demonstrates the significant market potential, of which Aira plans to serve one million households, while employing 8,000 clean energy-tech roles over the next decade.
Martin Lewerth, Aira Group chief executive officer, said: ‘The launch of our new Aira Heat Pump marks a key milestone in Aira’s journey to serve five million customers across Europe over the next decade.
‘Through this, we are helping more households unlock significant savings and reduce carbon emissions – all whilst adding value to their home with a state-of-the-art heat pump.
‘Heat pumps have been around in Scandinavia for decades and we are excited to bring contemporary heat pump design and technology to wider Europe. The time to switch is now because a warm home shouldn’t cost the earth.’
Although Aira is new to the market, it doesn’t mean it should be overlooked. Coming from Sweden gives it a huge advantage as heat pump installation has hit 60% and only 1% of the countries carbon emissions come from residential heating.
Kaj af Kleen, Aira Chief Product and Technology Officer, said: ‘Marking a new era in home heating, the Aira Heat Pump is the perfect replacement for any gas or oil boiler. Throughout the development process, our design team were laser focused on one goal: to make a simple system that any individual or family would love to live with.
‘We have developed an intuitive app that works to control your home heating and provides customers with peace-of-mind through the inclusion of features that help drive even greater efficiencies, helping them to save money and CO2 emissions.
‘We set out to design the next generation of heat pumps – a beautifully designed and intelligent system, available in a range of sizes fit for any home – and that is what we’ve done.’
Images: Aira
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Top barrister appointed to lead government review on national infrastructure
The government have confirmed that (Lord) Charles Banner KC will lead an independent review to speed up the delivery of infrastructure projects.
Housing Minister Lee Rowely, and Secretary of State James Cleverely have claimed Banner will be leading on the new review as infrastructure projects are often held up by legal barriers and judicial reviews.
To say Banner is successful in his field would be an understatement. He was called to the Bar of England & Wales in 2004 and to the Bar of Northern Ireland in 2010. In addition, he was also appointed to the Queen’s Counsel in 2019, during which he was only 38 – the youngest of the 2019 silks.
Assisted by fellow barrister Nick Grant, Banner will explore whether Nationally Significant Infrastructure Projects (NSIPs) are unduly upheld by inappropriate legal challenges, and if so, what are the main reasons and how the problem can be resolved, whilst guaranteeing the constitutional right to access of justice and meeting the UK’s international obligations.
An infrastructure project is a plan that focuses on the improvement and upkeep of services that are already in place in the country. Examples include, new road improvements, offshore wind farms and waste water management facilities.
It should also be noted that even if a legal challenge is unsuccessful, projects can still experience major setbacks.
One recent example of this is the Norfolk A47 project. Originally planned to be completed by the end of 2025, three new road schemes have been delayed by more than 20 months after climate activist, Dr Andrew Boswell, took National Highways to court.
Housing Minister, Lee Rowely, said: ‘It is vitally important that we use every tool at our disposal to slash unnecessary planning delays and accelerate building where it is needed across the country.
‘That is why I am delighted that (Lord) Banner will lead a review on how we can speed up the delivery of national infrastructure in the face of costly legal challenges. I look forward to the outcome of this crucial piece of work.’
In addition, (Lord) Charles Banner KC, added: ‘I am looking forward to analysing the information available, as well as the feedback from key stakeholders, to ascertain whether, within the terms of reference, there is a case for improving the process for legal challenges of NSIPs in a way that would reduce any identified impacts of inappropriate legal challenges whilst maintaining constitutional principles and relevant international obligations.’
The review that Banner is now leading was announced as part of the autumn statement last year. It is expected to take three months and the government will consider the recommendations once it has been published.
Image: shawnanggg
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