Skip to content
Search

Latest Stories

How the state can help UK’s housing market

How the state can help UK’s housing market

AS prime minister Boris Johnson successfully delivered Brexit and won the 2019 election, 2020 started with great hope and optimism.

However, the outbreak of Covid-19 came as the biggest watershed in recent global history. Two years later, we now hope to have the pandemic under control in the country, while it is still prevalent in many other parts of the world.


The pandemic has had a negative impact on fiscal matters, especially in the UK, following the launch of the furlough scheme by the government. While this was immensely successful, it has cost the government more than £70 billion. Inevitably someone has to pay for it. The government had no choice but to raise taxes to plug the gap. The fundamentals of the economy are on a tightrope as we have the biggest rate of inflation in a generation. A significant number of households cannot cope with rising prices. This will now impact the UK economy with further interest rate hikes this year, stagnating growth and probably leading to another recession, exacerbated by the war in Ukraine.

The impact of this will damage the housing market which is adversely affected by rising construction costs. As one of the country’s leading residential developers, our sector still has fundamental issues of concern. Stamp Duty Land Tax (SDLT) reform is needed and there should be no cap on permitted development. Also the planning system is a mess as applications take too long to process.

Page 17 top story byline pic USE AT END WITH HIS INFO Kamal Pankhania (Photo: Edward Lloyd/Alpha Press)

The last change to SDLT was made in 2019 by then chancellor Phillip Hammond who introduced a nil rate for SDLT up to £500,000 temporarily and this arrangement ended in summer 2021. This exemption should be reinstated in order to encourage the first-time buyer market. This area is still reliant upon “the bank of mum and dad” who are not earning enough to enable their children to get a foot on the housing ladder. Measures like this will provide more stimulus to this key part of the housing market.

Before August 2021, developers could buy office buildings and convert any office building into as many flats as possible. But last August, the government capped this at 16,000 square feet per building. This has now killed off this market. When you acquire an office building and want to convert it above the cap, you then have to make a full planning application which adds to further delays. Now it is taking up to 12 months on large planning applications. This added time results in costs escalation.

Finally, I would like there to be a greater use of fintech technology software which could replace the majority of planners working in councils. There should be a timeframe, say four, six or eight weeks, to determine all planning applications as the computer software will process this with no reliance on planners.

Each local authority would still have a head of planning to monitor the governance. The same system would carry out the appeals process as well in a timely manner.

It is essential some or all of these issues are addressed since the housing and construction sectors will be fundamental to the rebooting of the economy in the event of recession. We can help the government draft the housing bill immediately but unfortunately, it is too preoccupied with wider issues such as the war and election matters.

Kamal Pankhania is managing director of Westcombe Group, one of the UK’s  leading developers of residential homes. 

More For You

marks & spencer

M&S has confirmed that its physical stores remain open and operational

Getty

Marks & Spencer suspends online shopping after cyber attack hits systems

Marks & Spencer (M&S) has paused all online orders following a significant cyber attack that has left the company working to restore its systems. The retailer confirmed the cyber incident earlier this week, after customers began experiencing issues with online services last weekend.

While some systems have been brought back online, others remain offline, forcing M&S to stop taking orders through its website and apps. This includes both food deliveries and clothing purchases. The company issued an apology for the inconvenience, acknowledging the disruption and stating that its team, supported by cyber experts, is working tirelessly to resolve the situation.

Keep ReadingShow less
Pakistan airspace curbs push up costs for Indian airlines

FILE PHOTO: Passengers stand in a queue before entering the Chhatrapati Shivaji Maharaj International Airport in Mumbai. (Photo by SUJIT JAISWAL/AFP via Getty Images)

Pakistan airspace curbs push up costs for Indian airlines

TOP Indian airlines Air India and IndiGo are bracing for higher fuel costs and longer journey times as they reroute international flights after Pakistan shut its airspace to them amid escalating tensions over a deadly militant attack in Kashmir.

India has said there were Pakistani elements in Tuesday's (22) attack in which gunmen shot and killed 26 men in a meadow in the Pahalgam area of Indian Kashmir. Pakistan has denied any involvement.

Keep ReadingShow less
‘Exciting journey to turn Air India into a world-class airline’

Campbell Wilson

‘Exciting journey to turn Air India into a world-class airline’

AS AIR INDIA turns itself into a “world-class global carrier with an Indian heart” under the leadership of its CEO and managing director, Campbell Wilson, the first group of potential passengers who stand to benefit are Eastern Eye readers.

They frequently travel to India for family gatherings, holidays or work.

Keep ReadingShow less
Campbell Wilson

Air India CEO Campbell Wilson steps down as Air India Express chair

Air India CEO Campbell Wilson steps down as Air India Express chair

AIR INDIA CEO Campbell Wilson is stepping down as chair of Air India Express, the airline’s low-cost subsidiary. He will be replaced by Nipun Aggarwal, Air India’s chief commercial officer, according to an internal memo sent on Tuesday.

Wilson will also step down from the board of Air India Express. Basil Kwauk, Air India’s chief operating officer, will take his place.

Keep ReadingShow less
Air India eyes Boeing jets rejected by Chinese airlines: report

Tata-owned Air India is interested in purchasing jets that Chinese carriers can no longer accept (Photo credit: Air India)

Air India eyes Boeing jets rejected by Chinese airlines: report

AIR INDIA is seeking to acquire Boeing aircrafts originally destined for Chinese airlines, as escalating tariffs between Washington and Beijing disrupt planned deliveries, reported The Times.

The Tata-owned airline, currently working on its revival strategy, is interested in purchasing jets that Chinese carriers can no longer accept due to the recent trade dispute. According to reports, Tata is also keen to secure future delivery slots should they become available.

Keep ReadingShow less