Capital Gains Tax increase could cause problems

Brent Cross Cricklewood regeneration scheme put on hold by Government

Govanhill area of Glasgow need hit squads to sort out slums

An increase in Capital Gains Tax (CGT) could cause problems in the residential property market recovery and restrict the private sector’s delivery of high-standard rental housing, according to Ludlow Thompson.

There have been rumours of an increase to CGT in the next budget on 24 th March 2010 and buy-to-let investors fear a steep rise on the existing rate of 18% either at the next Budget or after the election, and it could dissuade them from investing.

Stephen Ludlow, director of Ludlow Thompson, said: “It is no exaggeration to say that buy-to-let investors have helped prevent the housing market from going into a post Lehman Brothers tailspin that would have dragged the rest of the economy down.

“Whilst it is understandable that the Treasury wants to address its shortfall by increasing taxes this must be balanced against how much strain the residential property market has been under during the last 18 months. The recovery has been fragile. Increase CGT and buy-to-let investment becomes much less attractive.”

Ludlow explained that continued investment into the buy-to-let market will be vital if the UK is to continue to improve the standard of the rental stock. The buy-to-let residential market has housed over one million people in the last ten years. However, the social housing sector is likely to come under budgetary pressure over the next five years and that the buy-to-let market will have to continue its role of attracting private money into the upgrading of the rental stock.

Brent Cross Cricklewood regeneration scheme put on hold by Government

The £4.5bn Brent Cross Cricklewood regeneration scheme has been put on hold after the communities secretary John Denham issued a ‘stop notice’ despite the plans being approved by the Mayor of London Boris Johnson.

It will be one of the largest regeneration projects in the capital and was approved by Barnet Council in November 2009 and would see the expansion of Brent Cross shopping centre and the creation of 7,550 new homes of which 15% (approx 1,000) will be affordable.

The secretary of state will now consider whether to call in the development for a public inquiry following pressure from local opposition groups, whilst the Communities and Local Government (CLG) department stated it had not been ‘called in’, it means that Barnet council is unable to make a final decision on the redevelopment plans.

A CLG spokesperson said: ‘We recognise that there have been strong views expressed about this complex proposal. We will carefully consider the case and decide whether to call it in.’

Jonathan Joseph, spokesman for the Brent Cross Cricklewood Development Partners, added: ‘The BXC regeneration has received detailed scrutiny from all relevant statutory agencies including a special two-day planning and environment committee hearing and has gained strong backing now from the mayor of London and cross-party support from Barnet’s planning committee.’

The scheme is expected to deliver around £1bn of investment in community and transport infrastructure, bringing 27,000 jobs, modern facilities for three local schools, new health facilities, parks and open spaces, a new high street and a transformed shopping centre.

Govanhill area of Glasgow need hit squads to sort out slums

The local authorities in Glasgow need to set up special ‘hit squads’ to solve the slum landlord problem in the Govanhill area of the city, according to Scottish Housing Minister Alex Neil.

At a Public Petitions Committee meeting, Anne Lear, director of Govanhill Housing Association (GHA), submitted a petition on behalf of GHA which requested that the Scottish Government begin an inquiry into the responsibilities of private landlords, below-standard social housing and the impact of slum living conditions on the health and well-being of residents.

Neil said: “The kind of imaginative initiative I would like us to look at is the possibility, for example, of establishing a special hit squad.”

This would enable council’s additional powers with one of them being to ensure landlords were complying with the registration scheme brought in to protect tenants from rogue landlords.

Lear believes the area should have some kind of special status, she said: “There is nowhere else in Scotland that has 1,200 unimproved properties, 75% at least of which are owned by the private sector and are not being regulated.”

Frank McAveety MSP, committee convener, said: “Govanhill presents a particular housing challenge and this is a petition on behalf of local residents asking for help from national and local government. The hope is that they will be listened to by the key decision-makers.”

The aim of the Public Petitions Committee meeting was to produce evidence and highlight key issues which the Local Government and Communities Committee may wish to consider further as part of its scrutiny of the Housing ( Scotland) Bill. It deals with policy objectives by modernising the regime for regulating social landlords (local-authority landlords and registered social landlords), reforming the right to buy social housing, and amending the law on registering private landlords, licensing houses in multiple occupation and dealing with disrepair in private housing.

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