07/05/2014
Headlines
07/05/2014
Housing market poses the biggest threat to financial stability, says BoE chief economist The Bank’s Financial Policy Committee is considering possible responses to the threat to financial stability and, since early May, now has powers to demand lenders impose tougher affordability tests on borrowers. The chief economist said the market was not yet overheating but that the Bank ‘should be nervous’ about the pace of recovery, but would investigate whether it is a London-specific issue. Separately, the Bank’s deputy governor said that the danger signs on the housing market resembled ‘a movie that has been seen more than once in the UK’.
Private rented housing: Labour manifesto proposal to reform sector Labour has promised significant reform of tenancy legislation to tackle ‘the terrible insecurity of Britain’s private rental market’: • Three year tenancies as standard • Initial rents will be based on market value • Rent reviews will not be more frequent than once a year • Rent increases no higher than an ‘upper ceiling’, set by legislation • Landlords only able to end tenancies with two months’ notice if they have a good reason, such as rent arrears, breaches of the agreement or anti-social behaviour • An end to the typical £350 fee people pay agents to secure a tenancy Labour has also proposed increasing Council Tax charges on empty homes from 50% after two years to 200% after one year.
Farming EU to promote the benefits of Europe’s diverse farming sector This interesting proposal aims to promote the EU’s diversity of farms and agricultural produce as a major asset for the economy, job creation and the environment. The background to this is increasing competition from global competitors such as the US, Brazil and China, where farm models are very different from the EU, which relies on smaller traditional farms. The proposal will be refined but one of its central arguments is that the diversity gives the EU greater resilience against shocks.
Water Bill and reform of the abstraction licensing system: ICE supports water shares The Government is asking for feedback on two proposals for reforming the abstraction system – one is a revision of the current licensing system, called Current System +, and the other is abstractors ‘owning shares’ in their local water catchments. The Institution of Civil Engineers (ICE) supports the water shares proposal as it creates a sense of mutual responsibility among abstractors to preserve water supplies and better promote water trading during times of water stress. ICE is also calling for an over-arching strategy for water security which covers all aspects of water use – domestic, industrial, agriculture, energy generation and the environment.
BRE National Solar Centre Biodiversity Guidance for Solar Developments Solar farms can greatly enhance wildlife, particularly bumblebees and butterflies, compared with surrounding farmland, according to research on four sites carried out for this guidance document.
Who benefits from GM crops? Friends of the Earth report This new study says that claims that genetically modified (GM) crops have higher yields, reduce farmer costs and hold the key to feeding a growing world population are based on myths propagated by the biotech industry. It urges the EU to help farmers produce for local markets rather than export, use traditional seed and livestock varieties led by local communities and support local farmer organisations. Cutting meat consumption in western countries would also reduce reliance on grain crops used as animal feed.
Property Issues European Structural and Investment Funds (ESI Funds) Growth Programme, 2014 to 2020 Just as you thought you were safe from CAP reform, we are now into a consultation phase on the numerous structural and investment funds that apply in the UK, including how Rural Development funds under Pillar 2 of the CAP will operate. The UK has just submitted its overall ‘Partnership Agreement’ to the EU on its strategy, priorities and delivery arrangements for the funds, and is now consulting on their operation in the UK:
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