What a Wednesday it has turned out to be thanks to our friends in Whitehall. There has been a slew of announcements but the most significant is the decision to allow buyers and renters to complete purchases and view properties in person.
This means that physical mortgage inspections can take place and hopefully will allow the mortgage market to begin its ascent to a normal operating environment. All developers will be relieved and at Pocket, where we have witnessed a doubling in our affordability assessments since the Easter, we are bracing ourselves for lots of buyer activity. Lockdown seems to be stoking demand as people reflect on their housing situation.
More generally there have been estimates that some 450,000 people have been unable to progress their moves. For many today’s measures will be a huge relief.
On the planning side, validation of applications is now to become an online process – phew and about time! I still remember the huge wads of paper I had to haul around as a graduate planner.
There is also to be more flexibility on the Community Infrastructure Levy (CIL). Proposals include deferred payments, instalment policy amendments and interest rate relief. However, watch the small print – this is discretionary. The Local Authority can choose to disregard. It will be interesting to see how many take up the option.
The Government is also advising that Councils take a pragmatic approach to legal obligations and use Deeds of Variations where possible. I am quite sceptical of seeing much movement here not least because such things can take as long to execute within an under-resourced local authority legal team as the planning application itself.
Onto construction and a new Safe Working Charter has been unveiled with the support of the Home Builders Federation. Site management and practicing social distancing has been a real challenge for the sector over this period so it is valuable that a more substantial guide is now available to support workers and managers on site. Flexibility on hours is also being encouraged. Again, this will need to be agreed with the Local Authorities. They will be mindful of the interests of local neighbouring residents so don’t expect all building sites to start working through the night.
