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Is there room for rent?

Tuesday, August 17th, 2010

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A new report was published yesterday by the Chartered Institute of Housing, claiming that the ‘golden age’ of home ownership is over and that we now need to focus more on rental options in the UK.

Whenever the issue of renting comes up, its always interesting to look at our friends in Europe and the sociological perceptions towards renting there. In France and Germany – where just 45% of homes are actually owner occupied – renting is commonplace. It’s also a regular trend across the pond in big American cities.

Now, a large proportion of our society are faced with barriers to entry, meaning that renting is having to be considered as a serious option within the UK. Primarily, the Institute of Housing’s report calls for the ‘improvement of rented homes to meet changing trends’, be they changing demographics of rental tenants or their lifestyles.

I see this as a positive. I don’t understand why there remains a ‘stigma’ to renting a home beyond your student or early professional years. There are great opportunities available to people who can rent and as more and more developers become landlords tenants will gain more added security which the report suggests is currently lacking. At Urban Splash for example we’ve been accredited by the Homes and Communities Agency as a landlord of affordable homes.

The report also calls for a more diverse rental market with varied price points for people in differing circumstances. This diversity of choice is becoming more evident as developers themselves offer more of a rental choice; at Urban Splash for example we now retain a large proportion of our rental stock meaning that there is a choice to rent or buy at homes around the country. Our rental portfolio has increased to more than 400 homes this year.

As developers themselves become higher volume landlords it brings more positives to the market. Primarily, the customer can develop a direct relationship with the housebuilder, resulting in less middlemen, more hands on management and improved customer care which may well resort in customers ultimately purchasing their homes as mortgage availability improves.

The report also calls for the Government and developers to provide more for the ‘inbetweens’, a segment of society they identify as having incomes between £12,000 and £25,000 whose income puts them outside of the social housing bracket but often in near impossible positions in trying to secure a mortgage. This is where Homes and Communities backed products come into play. Rent to HomeBuy, for example is where customers can rent at 80% market rent whilst they save up to buy between 25% and 75% of their home for upto five years. This is available nationally at homes in Manchester and Plymouth. There’s also HomeBuy Direct (which is finishing in September) which is allows customers to get straight onto the property ladder through obtaining a mortgage for just 70% of their home with the remaining 30% obtained through an interest free equity loan. They give customers the option to either ‘try before they buy’, renting their home at a reduced rate for up to five years, or go into shared home ownership with less financial burden.

Overall I think this report’s done wonders to help catapult the issue of home ownership back into the public eye. I now think its the responsibility of developers and the Government to maintain these efforts and broaden the offering nationally; be that in terms of price, tenure, size and location.

Homebuy Direct open evening Thursday 1st July, prices from £69,695

Tuesday, June 29th, 2010

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We are hosting an open evening this Thursday at Saxton in Leeds so that people can come and learn more about HomeBuy Direct.

The scheme allows customers to purchase their own home from as little as £69,695 and is backed by the Homes and Communities Agency. It helps customers to purchase up to 70% of their home with the remaining amount coming from an interest free loan from the HCA and Urban Splash. Our team, as well as our dedicated mortgage advisor will be on hand to give you advice about the scheme and what mortgage products are available to you. You could move into your new home this Summer!

Saxton itself boasts a mix of stunning one and two bedroom apartments all benefiting from fantastic specifications including full height glazing and visitors will be able to see this for themselves at our new eighth floor show apartment which will be ready to view on the evening. Outside the building there will be acres of green space with private residents’ garden and the opportunity for any greenfingered residents to have their own allotment. It’s located just a stone’s throw from the City Centre and in easy reach of the Calls and the City’s train station.

The doors will be open from 5pm through to 8pm and we really hope to see you there!


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Talking residents, not just residence at Saxton

Tuesday, June 8th, 2010

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It’s a lovely Friday and the sun is shining on Saxton, Leeds. I’m on my way to a meeting in the city centre and I walk past a group of the existing tenants from Saxton Gardens making use of the seating area on The Avenue we have recently given a make over. While out enjoying a cup of tea and some neighbourly banter I discovered that I share my birthday with the chair of the Saxton Gardens TARA, John Boyd (I did of course on finding out offer up some of my birthday cake which seemed to go down particularly well with the tea!).

We are lucky enough to have a great relationship with the residents on the existing estate, we see them regularly when they pop in to the office to share some news or get an update, we socialise with them at a variety of different events we have held at Saxton or round at the club hosted by them, which are usually over a game of bingo, and not usually won by us!

On a more formal basis we have been attending their AGM for the past six years, the most recent of which was earlier this month. I always come away with a sense of pride in what are trying to do at Saxton and how we have worked and continue to work with John and his committee. The format this year was the same as every other and as always the existing committee were re-elected, and it’s no wonder when you see what a great job they do. Saxton Gardens is a real community, all the people know each other by name (and more than often than not by business too), they all look out for each other and pull together in times of need. The big snow this winter was an outstanding example of this. When a number of the elderly residents felt they were unable to leave their flats because of the icy conditions on the streets, the community rallied round and made sure that all of these people were checked in on daily, and regular group runs to the shops made sure no one went without the essentials.

Urban Splash have been very lucky to be welcomed into this community and even though we haven’t always been the best neighbours, after all we are a building site both noisy and dirty by nature, we still get on well. We haven’t spent our time here without the odd complaint or two, however working alongside John and his committee there hasn’t been a single issue over the years we haven’t been able to resolve amicably. That’s because we know and respect that the people who live here really care about the area and enjoy living here. The Boyd family alone have had at one point 20 members from 5 generations living throughout the estate. Perhaps that’s why it feels like a family, fully fitted with parent like figures making sure people keep the place tidy and pick up their litter after themselves. There is no real secret it’s just about being normal and respectful.

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As we near the completion of the first building at Saxton, the number of new residents is growing daily and our first HomeBuy Direct* residents are due to move in within the month. The next challenge for us is to make sure our new residents become part of this community and share the same sense of pride and belonging in the place they live. I hope this relationship will grow, helped by a number of community events. When the allotments are ready for planting, they will also be available for both new and existing residents… we have a number of both on the waiting list already!

I think that Saxton is going to be a great place to live and one of the best in the city centre, we know the communal gardens are pretty unique within Leeds and will be a great asset for the residents and added to this our purchasers will be moving in to a ready made community. As one of the residents said to me a while ago, ‘We love this place, the majority of us have lived here for nearly 50 years and we take great pride in it and we certainly hope that the new residents will do the same, and they are more than welcome to come and have a game of snooker or bingo and a drink with us in the club’. Certainly not an offer I’m refusing!

Leeds needs? High quality homes

Friday, March 5th, 2010

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You may have seen the report in today’s Times newspaper about Leeds, a much debated city which seems to have retained a perception for a few years now that there’s a massive case of oversupply, something the report author claims is simply untrue.

One of the areas of the report that caught my eye was the reference to the fact that the recession and constraints on consumer finance mean that owner occupiers are buying for the long term. It also claims that investors are buying tenanted properties rather than off plan. The author says that this is down to investing for ‘longevity’. If this is the case, and it’s a trend that this report substantiates, then what Leeds really needs is high quality, good size homes that appeal to a broad audience, not just single dwellers.

It’s something we’ve focussed on at Saxton in the East Bank area of the City – a scheme that’s referenced in the report. At Saxton, where we’re converting two former council blocks, we’ve made efforts to create homes, not profit-maximising flats. We’ve expanded the size of the original floorplates, extending outwards to create more spacious apartments. We’ve catered for customers who want outdoor space too - ground floor homes offer private gardens and next year there’ll be allotments available. Furthermore there’s also extensive communal garden space planned, with lush landscaped areas for residents to enjoy. In bringing the more traditional suburban elements into the City we believe that we can add value and help people buy for the long term.

The report also makes reference to the fact that properties need to be well managed and that’s something we too have recognised, the majority of homes in our portfolio are now managed by our in house team.

One final point is that we believe in making high quality homes affordable and that’s why at Saxton, using our relationship with the Government’s Homes and Communities Agency we are offering HomeBuy Direct. It’s a scheme which offers customers an interest free loan for up to 30% of the property’s value, enabling people to buy at Saxton for as little as £70,000 and then staircase into it.

If you’re interested in Saxton or HomeBuy Direct drop us a line at live@urbansplash.co.uk.

In the bleak midwinter

Thursday, December 17th, 2009

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What a lovely evening we had last night at Saxton, our new residential development in Leeds, it really made me feel that Christmas had begun!

It was the first time since we completed the first part of the Saxton scheme that we’d got the old and new residents together. We had planned to huddle around the newly erected Saxton Gardens Christmas tree but typically the rain wouldn’t let up and we all moved inside, although we made sure we still had a view of the tree! In the warmth, we drank mulled wine, ate too many mince pies and sang along to a lovely carol service by the choir from the nearby Mount St Mary’s Catholic School, who we’d invited down for the evening.

We spotted lots of residents – old and new – having a chat and getting to know each other and can’t wait for the return of the next event with everybody next year – we just hope the rain won’t be here then!

If you want to be part of the new Saxton community, have a look at the homes for sale in Leeds at the scheme.

HomeBuy Direct now available at Saxton, Leeds

Friday, October 30th, 2009

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The first residents have now moved into the new Saxton apartments, and they’ll soon be joined by 15 lucky home owners who are able to sign up to the Government’s HomeBuy Direct scheme. If you’re eligible, this means you can own your home for as little as 70% of the value, which could be from £70,000!*

With HomeBuy Direct, you can get a loan (funded by the Government and Urban Splash) for up to 30% of the value of the property and the loan is interest free for the first five years. You will need to fund the other 70% through a combination of mortgage and savings – usually borrowing 65% with 5% as a deposit.* Download a PDF about HomeBuy Direct here or watch our HomeBuy Direct movie here.

Saxton is a fantastic place to live, with spacious apartments, all with full height glazing and high specification. Saxton will also have a private residents’ garden and allotments which will be a great place for you to meet your neighbours. The apartments are located close to the City Centre and its bars, restaurants, theatres and transport links.

To book your appointment to view our fabulous new show apartment contact the sales team or call 0333 666 6000.

*See the legal bit here