“more good homes and a better united kingdom” - 3cpd · “more good homes and a better united...

“More good homes and a better United Kingdom” Michael Newey,

RICS President & RICS Housing Commission Chairman

Three key messages …

The RICS is still all about standards,

competency, and ethics – in a changing world

RICS public interest voice is a fundamental

duty

Housing policy needs to be all tenure and not

preferred tenure

RICS generally Housing

Inauguration messages

Headlines of change

Housing Commission

Agenda …

2 out 4 messages

Continuity…

Unchanging purpose in a

changing world

Custodianship …

Fit for today and tomorrow

Our world.Changes

Looking back

Our world.Transformed.Our world.Transformed.

Population Growth

Our world.Transformed.Our world.Transformed.

Urbanisation

Our world.Transformed.

Shanghai 1990

Shanghai 2010

Our world.Transformed.

Middle Class Growth

Our world.Transformed.

Our world.Transformed.Our world.Transformed.

Top 500 multinational corporations account for nearly 70% of worldwide trade

Our world.Transformed.Our world.Transformed.

Global cash flows

Central London: Office Investment Transactions

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2002

Q4

2003

Q2

2003

Q4

2004

Q2

2004

Q4

2005

Q2

2005

Q4

2006

Q2

2006

Q4

2007

Q2

2007

Q4

2008

Q2

2008

Q4

2009

Q2

2009

Q4

2010

Q2

2010

Q4

2011

Q2

2011

Q4

2012

Q2

2012

Q4

2013

Q2

2013

Q4

Overseas Purchasers

Domestic Purchasers

Source: CBRE

£ billion 4Q total, £ billion

Q4 2013: highest quarterly total; 80% purchases from overseas

• Source: CBRE, Property Data, KTI

Over £16 billion of purchases by overseas investors. Foreign investment into CL Offices increased by 75% over 2012.

Foreign Investment in Central London Offices, 2013

North America£2.55bn

Asia

£6.35bnMiddle East

£4.03bn

Elsewhere£0.10bn

Europe£3.19bn

Our world.Transformed.

Constructions uses 60% of all

utilised materials

60% of energy used is used in

buildings

40% of CO2 output comes from buildings

Our world.Transformed.Our world.Transformed.

Instantaneous communication

http://www.rics.org/uk/the-profession/rics-futures/

“We, here, have no politics, never have had and never will. We have always been READY TO HELP AND ADVISE the Government of the day and for that matter anyone else needing it. But I do not subscribe to the view that we must always wait to be asked.”

Dennis Pilcher - 1963

Public interest

National Context

Unaffordability Under supply Growing fuel poverty

Economic implications

Housing Commission approach

Public interest, not member

interest

Positive suggestions,

not complaints

Informed & balanced by

evidence

A Task Finish Group

My thanks …

45 witnesses – in writing and face to

face

The Commissioners• Mark Clare, Barratt Developments• Richard Donnell, Hometrack• Nick Jopling, Grainger plc• Prof Duncan Maclennan CBE FRSE, St

Andrews University• James Pargeter, Deloitte Real Estate• Rosalind Rowe, PwC• Paul Tennant, CIH & Orbit HG• Jeremy Wood, Dudley Building Society• Michael Newey, RICS and Broadland HG

(Chairman)

Recognition

Successive governments have tried to help housing markets

Some current initiatives are:-• Positive in the long term• Positive in the short to medium term• Potential for unforeseen consequences

Example Initiatives•National Planning Policy Framework•Housing Loan Guarantees•Funding for Lending•Help to Buy•Affordable rent

The report

39 recommendations All tenures

Land supply Promoting home ownership

Funding affordable homes

Sustainability and Fuel Poverty

June 2013

Recommendations

Assessing the impact of welfare changes• React to as yet unforeseen consequences

Under occupation “relief”• Travel to work / Rural Areas

Regulation of registered providers• One size will not fit all

Proportional regulation?

Diversity of Geography

Diversity of Financial Capacity

Diversity of Mission and

Vision

Diversity of Size

How much risk is acceptable in order to deliver on organisational purpose?

Who can be trusted to decide?

The Key Risk Questions?

Land Supply …

Land Supply

Double the public sector land target •From 100,000 new homes

to 200,000 by 2015

Land Supply

Default valuation basis

•Residential with subsidised provision

Accessing ownership …

Promotion of home ownership

A portable home ownership discount for social tenants• Giving choice to tenants and

preserving the rented stock

Subsidies …

Funding new affordable homes

New “Higher” Council Tax Bandings• Ring fenced for new affordable housing

Local Authority Finances• Prudential borrowing to finance new homes

Certainty on rents AND welfare• Creating the environment for investment

Fuel Poverty…

Addressing Fuel Poverty

Social rents that reflect energy efficiency• Sharing the benefit and cost

VAT, Stamp Duty, Green Deal • Making fuel efficiency work financially

Fundamentally …

Housing policy based on all tenures not just some

Consistency and certainty essential

Finally …

The RICS is still all about standards,

competency, and ethics – in a changing world

RICS public interest voice is a fundamental

duty

Housing policy needs to be all tenure and not

preferred tenure