The latest UK property news delves into the fundamentals of the housing market. There is the latest Nationwide house price index (HPI), an investigation by the Competition and Markets Authority (CMA), and warnings about a significant shift in the housing market itself.
But our review kicks off with calls for the validity of Energy Performance Certificates (EPCs) to extend for no longer than three years at a time.
Call for EPCs to be renewed every three years
If the government’s net-zero targets are to be successfully met – through an improvement in building standards and an end to fuel poverty – then Energy Performance Certificates (EPCs) should be issued with a validity of just three years, according to a story in Landlord Today on the 6th of March.
Energy assessors argue for a re-design of the ways EPCs work:
- they should feature estimated carbon emissions, the energy consumed, and the cost of that energy – the so-called “3 Cs”;
- incorporate a “golden triangle” energy assessment that looks at the estimated energy cost to the building, its occupancy rating, and energy consumed;
- ensure EPCs reflect the current state of the building – by restricting the validity of the EPC to no longer than 3 years;
- give priority to education in energy efficiency; and
- keep assessment methodologies up to date.
Halifax HPI for Feb 2023
Average house prices in the UK remain fairly flat – figures confirmed by February’s house price index maintained by the Halifax building society, published on the 7th of March.
The price of a house in the UK increased by 1.1% during the month to reach an average of £285,476 – a price that has held more or less steady for the past three months.
While house prices fell during November and December, ground has been made up more recently thanks to the latest reductions in mortgage interest rates, heightened consumer confidence, and a relatively buoyant labour market. All these factors have helped to stabilise house prices, says the Halifax.
Competition investigation launched into the housing sector
An investigation of the availability and cost of housing – both owner-occupied and rented – will be conducted by the Competition and Markets Authority (CMA), revealed the online listings website Zoopla on the 3rd of March.
The CMA declares that the cost and quality of housing are some of the most significant issues to be addressed by housebuilders in the UK – so, it wants to make sure that there are no obstacles to competition in the market. That is the way it can gauge whether the industry is providing as many homes as people need at sufficient speed.
While these issues of cost and availability extend to both the owner-occupied and private rented sector, the CMA will also look more closely at the experience of tenants and whether landlords and their agents can benefit from greater help and support in meeting their obligations.
The big changes hitting the UK housing market in March
The Stoke Sentinel has highlighted some of the changes coming to the UK property market this month including:
The Spring Budget – March 15
The article says that major measures designed to support house prices are unlikely. Something that might be on the table, however, is the potential cancelling of the ÂŁ500 Energy Price Guarantee, which sets a cap on the normal household energy bill, in April.
Bank of England MPC meeting – March 23
On March 23, the Monetary Policy Committee of the Bank of England will get together once more. Last month, the MPC voted to increase the Bank’s base rate of interest by 0.5%, the tenth consecutive meeting in which the rate was raised
Help to Buy ends – March 31
As of March 31, the Help to Buy scheme will come to a close. Those who are in the process of applying for a Help to Buy equity loan must complete the process before the deadline in order to be eligible for the scheme.
The government has stated that there will be no extensions to this date, regardless of the circumstances.
The Help to Buy scheme, established by former Chancellor George Osborne in 2013, offered first-time buyers the opportunity to purchase a home with a 5% deposit. While the policy was initially met with praise and enthusiasm, it has come under fire in recent years for being a major factor in the house price inflation that has caused many to be priced out of the market.
