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The Independent
an hour ago
- Business
- The Independent
Angela Rayner must learn lessons from housebuilders if she wants to succeed
In my corner of south-west London, it is impossible to avoid Berkeley Homes. Their boards are everywhere, popping up with new developments of apartments and houses. For the SW postcodes read right across London, Birmingham and the south-east. Berkeley has got them cornered and as today's company figures show, it is powering ahead, leading an industry that has been struggling with red tape, rising costs, shortage of suitable sites and an uncertain market. Berkeley has always been a firm built on disciplined execution and rigid control of costs. Under CEO Rob Perrins, that focus has been even more firmly enforced. It's a tightness that is reflected in the news that Perrins is to move up to become executive chair of the Berkeley Group, on the retirement of Michael Dobson. Chief executive since 2009, Perrins has overseen a period of sustained strong performance and growth. The City is not always approving of CEOs switching to chair, but in this case it makes perfect sense: Perrins knows the company, market and industry backwards; he's also au fait with the complex and often fraught regulatory landscape. To appoint someone from outside at this moment of great change, with a government committed to driving house building on a huge scale, seems madness. If anyone knows what requires unlocking to make that key policy even remotely achievable it is Perrins. It's likely Berkeley shareholders will listen to the reasons for and approve. There is simply too much risk involved in going down another route, why take the risk? Investors, though, are just one audience. The other people who should fall upon Perrins' experience and knowledge are ministers. Here we start to come up against the block of old Labour ideology, based on a fixated view that practitioners like Perrins are solely motivated by money, that all they are interested in is securing ever greater profits. It's not just senior Westminster politicians who think like that but local councillors. They view much of what the likes of Berkeley do and suggest with suspicion. Instead of leaning on the private sector – the folks who after all commit the cash, take the gamble and actually build and sell the properties – for advice and working together with them, there is a tendency to keep a distance, to hear, to nod politely and do next to nothing. That, certainly, has been the pattern previously, which is why so little has been achieved. Government targets for new homes are not a recent phenomenon; they have been set many times in the past and nowhere near met, so much so that they have come to hold a fantasy, pie in the sky, wouldn't it be wonderful, aspect. It's a cycle that must be broken if the country is to have any chance of resolving a deepening crisis and from Sir Keir Starmer 's point of view, if he is going to have any prospect of adhering to a central Labour pledge that will impact upon the next election. Which means that Angela Rayner, the minister charged with making it happen, should look closely at what Perrins is saying and act. Of course Perrins is pursuing a financial return. It would be negligent of him not to; it's what is expected of him and his colleagues; they must deliver or else. That's how business operates and no-one is pretending otherwise. Equally though, the one cannot succeed without the other. Rayner and her team need the housebuilders; the housebuilders need Rayner and her team. They should both be pulling in the same direction. The government's mission is to build 1.5m homes. Essential to achieving that are brownfield sites and occupying a vital position is London. It's our only world city, the one that enjoys the strongest economy and offers the greatest potential for growth. Unfortunately, too many politicians look askance when London is mentioned. They are not from London and they are devoted to levelling up, which in London's case translates into levelling down. The London figures suggest a micro-crisis within a larger crisis – private housing starts for the last 12 months amount to just 8,700 and completions are expected to drop to 7,000 - 8,000 in 2027. They are pitifully low. London is where people want to live, it's where the jobs are, it's where foreign capital is heading – yet not enough is being done to help. Berkeley and its ilk face a double whammy in London: costs have risen by over 40 per cent since 2016, but the price of flats is flat. Make that a triple: as if that was not heady enough, the regulatory burden has increased. Much of it is well-intentioned – post-Grenfell, fire safety has become a major concern – but it all adds up. At the same time, public services are placed under ever greater strain, which inevitably puts increased pressure on the private purse. These days, councils desire, expect, far more for their buck. From their side, there is too much take and insufficient give. Planning, which is in their gift, is as hidebound as ever, more so with the issuing of unrealistic priorities that take little account of market conditions and operational strictures. So tortuous is the planning process that shamefully, appeal is now the default. One change that would yield instant benefits, which Perrins keenly advocates, is for councils to use Section 106 agreements rather than the Community Infrastructure Levy, or CIL. The latter is a standardised, non-negotiable charge assessed on development size and style, whereas the 106 is negotiated and site-specific. In others words, the 106 can be made to fit what is being proposed. Hard-up councils though, prefer the cash, hence the popularity of the CIL. But that tariff, which is what it is, may not sit fairly with the developer. Projects are being lost through the councils' failure to compromise. An urgent rethink – or as this government prefers, a reset – is required and the housebuilders, with Perrins to the fore, must be a more equal party to those discussions.
Yahoo
an hour ago
- Business
- Yahoo
America's 5 Most Overvalued Housing Markets That Are Finally Cooling Off
A report by Zillow found that home prices surged by 45.3% between 2020 and 2025 — more than double that average appreciation rate. That caused many housing markets to outpace local fundamentals like income, creating unaffordable homes. Now those chickens are coming home to roost in many of the cities that skyrocketed the most in cost. Explore More: For You: Keep an eye on these overvalued markets that have finally started cooling. Average home price: $773,258 (Zillow) Year-over-year price change: -1.1% Average days from listed to pending: 39 Homes in Honolulu cost more than double the national average of $367,711, although that may not last. Prices have declined over the past year, and real estate listings are sitting on the market for double the national average of 19 days. For Hawaiian homebuyers, that spells some much-needed affordability relief. Consider This: Average home price: $743,496 Year-over-year price change: -0.6% Average days from listed to pending: 29 Montana home prices shot the moon during the pandemic, as urban Californians, Oregonians and Washingtonians fled for more open space. Now reality has started setting in, and prices have started settling down. Don't expect them to drop anywhere near 2020 levels, but Bozeman home values remain flat since July 2022 when they reached $742,017. Average home price: $595,318 Year-over-year price change: 1.4% Average days from listed to pending: 49 In 2025, surging home prices and insurance premiums have caught up with Miami. Home prices have dropped by 1.09% over the last three months, as the market quickly turns south. Real estate broker Anthony Askowitz has seen the market shift over the last few months. 'Sellers have had to negotiate their prices to get properties sold, resulting in the number of days on the market jumping,' he said. Sure enough, only 6.3% of Miami home sales close above listing price, compared to 79.1% that sell under it. Average home price: $586,370 Year-over-year price change: -6.4% Average days from listed to pending: 64 It's a terrible time to sell a home in Naples. Real estate listings languish for more than triple the national average, and home prices have dropped by a dizzying $40,000 over the last year. High interest rates, soaring insurance premiums, a glut of new supply, and of course too-fast appreciation post-pandemic all collide for a perfect storm of a buyer's market. Average home price: $536,565 Year-over-year price change: -5.5% Average days from listed to pending: 39 Like Honolulu, Austin home listings are lying fallow for double the national average. 'During the post-COVID real estate run-up, Austin saw prices shoot up faster than what local incomes or job markets could realistically support,' explained Larry Shinbaum, real estate broker with Luxuri International. 'It just wasn't sustainable. We're now seeing a slow correction, with sellers finally adjusting expectations. Homes sitting on the market longer, bidding wars are rare and incentives are back on the table.' More From GOBankingRates 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth This article originally appeared on America's 5 Most Overvalued Housing Markets That Are Finally Cooling Off
Yahoo
an hour ago
- Business
- Yahoo
Down 18%, Is Home Depot Stock a Buy on the Dip?
The housing market is still under pressure, leading to lower interest in home improvement projects. Home Depot's model has a natural hedge because even in these times, people need to do small home improvement projects. The company has diversified its supplier base to boost its leverage. 10 stocks we like better than Home Depot › Is home improvement giant Home Depot (NYSE: HD) stock a buy on the dip? If you're looking for a great value stock, Home Depot stock looks priced to buy today. The market is hovering just north of flat for the year, and there's a tentative confidence in the economy. Many tariff issues have been worked out for now, and U.S. companies are demonstrating resilience. However, it's fragile. With interest rates still high and the real estate market still low, many companies, specifically related to the housing market, are still under pressure. Home Depot has been reporting moderate performance, and it's not expecting that to let up as long as conditions remain the way they are right now. Home Depot stock is 18% off its all-time high, and investors should take a look. Mortgage rates are still high, and the real estate market is still stagnating. According to Redfin data, housing prices rose in May, while house sales tumbled 6% from last year. The national average 30-year fixed mortage rate was 6.8%, slightly lower from last year, but still elevated. This is mostly detrimental to Home Depot's business, because people invest in renovating new homes, whether big projects or small. They try to avoid investing in old homes that they plan to leave. The flip side, though, is that if they remain in their older homes, they have no choice but to fix them up to make them livable or comfortable. That provides a natural hedge against negative market forces. That was borne out in recent results, which demonstrate that customers are shopping for small projects while putting big remodeling jobs on hold. Home Depot is the largest home improvement retail chain in the world, and it has a robust omnichannel network serving individuals and pros. The vast and varied business means that it has many levers to pull to generate engagement and sales. Under any circumstances, Home Depot operates in a great industry because there's always a need for it. Management pointed out that the housing stock is aging, with 55% of U.S. homes at least 40 years old. They're most homeowners' largest asset, and these houses need work. In the 2025 fiscal first quarter (ended May 4), sales were up 9.4%, but comparable sales (comps) were roughly flat year over year. Earnings per share (EPS) declined from $3.63 last year to $3.45 this year, and the results were in line with expectations. For the full year, management is guiding for modest growth in sales and comps and a modest decrease in EPS. CEO Ted Decker noted that the company is well-prepared for whatever happens with tariffs. Half of its goods already come from the U.S., and it has diversified its supply chain over the past few years. It's continuing these efforts, and he expects that no one country will be responsible for more than 10% of its supplies in a year from now. Because of its scale and diversification, it's agile and has pricing power. Home Depot has a $1 trillion opportunity, which is recently expanded by acquiring pro supplier SRS Distribution. It opened 13 stores in Q1, which contributed to its excellent sales growth. Although it already has more than 2,300 stores in the U.S., Canada, and Mexico, it still has expansion opportunities. Home Depot is a top value stock that pays an attractive dividend. The dividend yields 2.6%, and it's increased 290% over the past 10 years. At the current price, it trades at a price-to-earnings (P/E) ratio of 24. That isn't super cheap, but it's around recent averages. This is what the market thinks Home Depot is worth, because it's reliable for strength and passive income, and it's likely to get back into growth mode under better circumstances. If you're looking for a top value stock to buy on the dip, Home Depot is an excellent option. Before you buy stock in Home Depot, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Home Depot wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends Redfin. The Motley Fool has a disclosure policy. Down 18%, Is Home Depot Stock a Buy on the Dip? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
4 hours ago
- Business
- Telegraph
‘I was ridiculed for buying a London flat, but it's already gained £100k'
As a single woman in her 20s, owning my flat gives me a level of independence and security that would be impossible otherwise. Dodgy landlords are no longer a concern of mine and I don't have a looming eviction date. I don't even have to worry about finding a suitable partner with the means to escape the pressured rental market, as the cost of renting a room in the capital continues to surge. Before I bought my flat last year, I'd been a student, sleeping on sofas for weeks at a time while taking on summer jobs. After that I became a renter, living for two years with university friends. But once the keys were in my hand, I suddenly had something I'd not had since I'd left my family home for university – a permanent base. My colleague, Josh Kirby, writes that he does not 'believe a flat in London is a good investment for me at this moment in time'. But I decided to buy because I wanted a proper home. And while some like Josh have cast doubt on the wisdom of buying a flat in the capital, I think it is still a sensible option. And if it is located in the right area and well looked after, there is little concern about it holding its value. Some worry about the uncertainty around the current housing market, but I took a gamble on a nice flat in a popular location. I now live near the Thames, a 30-minute commute from work, and near a number of friends. And so far, I've had no reason to worry about it. In fact, Zoopla has estimated that in the year since I bought it my flat has increased in value by £100,000 – which, frankly, does seem ridiculous. But I don't place much weight on the value growth: I have no plans to sell my flat in the near or even mid-term and, without sounding too much like an estate agent, looking at your home as only an investment is a mistake. That's not to say that money was not on my mind. I have been up front with friends, and in my previous column, that my parents gave me a very sizeable deposit to help me buy. But I am far from the only one. My mortgage is entirely my responsibility, as are the ground rent, service charges, utilities and upkeep. I was paying over £1,080 a month in rent; now, my mortgage payments are £650. Even when service charges (mine went down this year) and ground rent (peppercorn) are taken into account, I am still better off. And I've got a fixed rate of 3.99pc for the next four years, so I don't have to endlessly stress about the latest inflation figures. Currently, I overpay by roughly half, because if I spent the full 40 years paying off my mortgage, I'd pay close to £500,000 in interest. That's more than £3 for every £1 I borrowed. And because I bought last year, I benefited from lower stamp duty – saving me £4,000. I also have lodgers. They get a good deal, with below-market rent, and I get help saving towards some of the renovations I want to do. Being a landlord – even in a relatively informal way – has been eye-opening. I feel confident I haven't lost any future opportunities by being tied down: if I wanted to move away for a period, it would be pretty easy. Flats in my postcode are currently being let for as much as £2,700 a month, and charging a monthly rent of £2,000 would more than cover my costs. Even with the upcoming changes in the Renters' Rights Bill, I'd still be able to regain the flat within four months if I wanted to move back in (assuming tenants moved out as asked). Making my flat my own One of the joys of being a homeowner is that you get to decide what the place you live in looks like. No more 'landlord specials' for me – I can decorate to my heart's content. Considered renovations can also add significant value to a home. I increased the size of the second bedroom by moving a wall, and have replaced some flooring. I also plan to have a new bathroom – all of which should help to keep the value of my flat level. While these are not insignificant investments, increasing the value of the flat isn't my only driver. Improvements make the flat a nicer place to live. It's a different priority, but one that is just as important. It should also make it easier to sell. Before I bought it, the flat had been let to social housing tenants and had not been that well looked after. I made the decision to buy it based on its good bones. Now it's being looked after – and with no stars in my eyes as to what I could sell it for – I am confident it would go quickly if I wanted it to. Now is a good time to buy a flat There are a lot of numbers floating around which make the London market look less than healthy. The price of flats has not significantly increased since 2016, with buyers put off by concerns around high service charges, cladding issues and incomplete leasehold reform. But one thing this meant for me was I could negotiate a significant discount. My flat was initially listed for tens of thousands of pounds more than I paid for it. The sellers, who the estate agent told me were living abroad, had already been almost the whole way through the sale process once before, but the buyers had dropped out. With weakened interest in flats generally, even my two-bed, within walking distance of Canary Wharf, was struggling to sell at its original price. The average home sale at the moment is being agreed at 3pc – £16,000 – lower than the average asking price, Zoopla has found. I used this knowledge, and my position as a chain-free buyer with a mortgage already approved, to promise a swift and easy sale, and secured a larger discount as a result. Obviously, not every flat on the market will turn out to be a bargain. But as sellers move away, buyers who can be flexible and move quickly will reap the rewards. Mortgage lenders are rapidly relaxing affordability rules and stress tests in order to lend more to first-time buyers, and are lobbying hard for regulators to go further. This means that homes which could have been out of budget may now be within reach. Maybe I only strongly support buying because, for now, it has worked very well for me. But the fact remains that it works very well for most, providing a level of housing and financial security you can't get through renting. That's why people want it so badly.
CTV News
13 hours ago
- Business
- CTV News
32,000 more homes needed annually in Toronto to return to pre-pandemic rates: CMHC report
Construction is shown at the site of a new condominium project in downtown Toronto, Tuesday, Jan. 24, 2023. Toronto will need to build nearly 32,000 extra homes per year for the next decade for housing costs to dip back down to pre-pandemic levels, according to a new report. The Canada Mortgage and Housing Corporation (CMHC) released new estimates on Canada's housing supply gaps on Thursday, showing that a return to housing affordability levels last seen in 2019 will require between 430,000 and 480,000 new housing units be built annually across the country until 2035—an approximate doubling of the current pace of construction. The report says that if home building of both ownership and rental type properties continues at a 'business as usual' pace, Toronto will see an average of 44,000 housing starts annually. However, to reach prices seen in 2019, those housing starts will need to increase by nearly 70 per cent—or 31,511 units—to reach 75,565 annual starts. Of the approximate 32,000 units, the CMHC report says more than 26,000 should be additional ownership starts, nearly 4,000 should be primary market rentals, and more than 1,100 in the secondary rental market. The report adds that despite increased rental construction in recent years, the region is lacking homeownership options that match local incomes. CMHC says home prices in Toronto grew by 6.7 per cent between 2019 and 2024, while rental costs jumped 4.8 per cent in the same period. They add that home prices will continue to climb with increases as high as 62 per cent in 2035 if there is no action to increase supply. That change in price drops to nearly 20 per cent with additional supply. As for the rest of Ontario outside of Toronto and the Ottawa-Gatineau region, the report says over 86,000 additional housing starts are needed annually to reach a total of 124,795 new builds every year for the next 10 years.
