Company News

Just over 4 years ago Richard Crabb joined us from DTZ to add agency to the services we offer. Time has flown and the business has really established itself and expanded with some excellent business done and an increasing profile. We are always looking for the right staff to take the business forwards in all areas and are very pleased to confirm the expansion of the agency team with Oliver Workman joining in January 2014. After working in Cornwall for 2 years Oliver is moving back to the area with his family and is looking forward to meeting clients and joining an expanding team and office.

Rates pain

Business rates are under the spotlight again with Graham Ruddick highlighting the Telegraph’s Fix the Rates campaign which calls for business rates to be frozen for two years and then reformed. Mr Ruddick cites research by PwC which shows the tax burden for Britain's leading retailers has increased by 65% since 2005, driven by an 80% increase in taxes outside of corporation tax, such as business. They now pay a total tax rate of 59% and their tax bill rose to £3.99bn in 2012, compared with £3.86bn in 2011. Business rates have been blamed for hampering investment in shopping centres and other commercial developments.

Did you really appreciate the serious implications of The Energy Act 2011 for both landlords and tenant?

From April 2018 it will become unlawful to rent property with an energy rating of F or G unless a package of measures has been carried out under the ‘Green Deal’ to improve the property

This will effect 18% of Commercial Properties and has the potential for some contentious negotiations at the end of a lease term, possibly preventing re letting or indeed surrender. The implications for dilapidation negotiations could be very complex particularly if there is a covenant to meet Statute in the Lease

The Green Deal is a financial framework (up to 25 years) to enable fixed provision of improvements to avoid upfront costs and will bind future owners and occupiers. Repayments are made via energy bills.

For further information on this or any other dilapidations issues please call 01242 584674 pressing option 1 or email contact@nickbevan.co.uk  

Concerns over rush to launch Help to Buy second phase

Most papers report that fears have been raised over the PM's decision to rush forward the second phase of the Help to Buy scheme with warnings that it could backfire and prevent people getting on the property ladder whilst threatening to create a new housing bubble. Mr Cameron said: "I am not going to stand back while people's aspirations to get on the housing ladder, to own their own flat, to own their own home, are being trashed." He added that he had the support of NatWest, RBS and Halifax. In response Adam Marshall of the British Chambers of Commerce said: “With all the concern expressed about Help to Buy - rushing into it seems less than responsible on part of government.” Andrew Montlake of Coreco commented: "This is an extraordinary announcement by the government, especially as one of the biggest issues with part two of the Help to Buy scheme was that there was some concern whether lenders would be ready to introduce the scheme in January, let alone October." A leader in the FT argues that Mr Cameron should have reconsidered the scheme rather than bringing it forward, and adds that the Bank of England's Financial Policy Committee should have the power to examine the scheme whenever it wishes rather than just annually as is now the case. Peter McKay in the Daily Mail says that the last crash occurred largely because banks were lending 100% mortgages to people who could not afford them with the buyer and lender relying on the value of the property rising. He says that we were told this reckless lending would never happen again. He wonders though, isn't guaranteeing 95% mortgages a little reckless also. The Times' Anne Ashworth says the scheme looks likely to be the most controversial ever government housing package. The Daily Mail reports that NatWest and RBS banks are preparing to extend their opening hours to deal with a surge in demand for the state-backed mortgages.

Miliband's 'land grab' criticised

Ed Miliband has come under criticism after unveiling measures to extend towns into the countryside and seize land back from developers who are not building houses. Mr Miliband vowed to issue compulsory purchase orders to developers who had planning permission to build on their land, but refused to do so. He said they could also be fined. John Acres, of the planning advisers Turley Associates, said the compulsory purchase order threat was "worrying". "This looks suspiciously like a 'land grab' on private developers who may have sites that are stalled through problems of viability or stymied by planning conditions - which could delay rather than deliver new housing," he said. Graeme Leach, the chief economist at the Institute of Directors, added: "The fundamental problem with the housing market is the public-sector planning system, not private-sector builders. It's hard to imagine a more statist solution to a problem caused by the state." The Mail's Alex Brummer also weighs in on the debate. He argues that giving "draconian" powers to councils to seize land from property owners is an assault on ownership rights and risks corruption. Mr Brummer also notes that Labour has failed to recognise that the best brownfield land is public sector owned, thus it would just be seizing land back from itself.

Rightmove raise price rise prediction

Rightmove has tripled its forecast for house price rises in 2013. The company expects the average property price to increase by 6% this year, up from the 4% it predicted two months ago. At the start of the year it predicted prices would rise by 2%. It said the average asking price reached £245,495 in September, a 4.5% increase on the same month last year, although this was down 1.5% on August. It also reported 96,330 properties came on to the market in the past month, down by 9% on the previous four weeks and the lowest figure since February. The firm’s Miles Shipside, Rightmove's housing market analyst, said a drop in the number of homes being placed on the market will "prime the pump for an autumn price surge as buyer confidence and activity continues to increase". Prices are rising fastest in greater London, up 8.2% over the past year to £493,748, and the West Midlands, up 6.8% to £195,429. A separate report from the Building Societies Association has found that more than 60% of people now believe house prices will rise in the coming year, the highest proportion since it began collecting the data in 2008.

RICS suggest capping house-price growth

A 5% cap should be placed on annual house-price growth amid fears that the country is heading for a "bubble", according to a report from RICS. It says a message that the bank's financial policy committee will not tolerate price rises above a certain limit would restrict sellers' overblown expectations and discourage buyers from taking on too much debt. RICS suggested the bank could put the brakes on growth by imposing a ceiling on the sums banks are allowed to lend. It could put caps on the term of a mortgage and on the sums lent in relation to deposits or incomes, RICS argued. BoE governor Mark Carney signalled to MPs yesterday that he was open to moves to cool Britain's housing market if it began to over-heat.

Governor of Bank of England prepared to act on housing bubble

Mark Carney has signalled that he is prepared to act to prevent a housing bubble getting out of control as he delivered his first speech as Governor of the Bank of England. The Bank could use new tools to recommend that banks and building societies "restrict the terms on which new credit is provided, or even to raise capital requirements on mortgages or other types of lending", he told business leaders in Nottingham. Mr Carney added: "The Bank is acutely aware of the risk of unsustainable credit and house price growth and will be monitoring it closely. The important thing to recognise is that we now have tools other than interest rates that can be used to contain risks in the property and financial sectors. We are now fully prepared to deploy them if that were needed."

Empty shops could become homes

Several papers reflect on comments by Nick Boles, the Planning Minister, that town centre shops could be converted into homes. In an interview with the Sunday Times, Mr Boles suggested that rather than seeking to revive every street of boarded-up shops, councils should concentrate on retail outlets in "prime" locations and allow other areas to become residential areas. Mr Boles said that the rise in internet shopping and a change in working patterns meant councils needed to take a "more relaxed" approach to converting underused retail space. Retail experts were divided on his proposal. Mary Portas said: "My concern is that the local councils will just go for the easy option of 'let's turn it back to housing' and that mustn't happen." Retail campaigner Bill Grimsey offered a different view. He said: "At last the message is getting through - that there are high streets out there that need to be considered in a very different way. It's only going to get worse. High streets cannot continue to serve solely as a retail destination, they have to be seen as a community hub."

7 things to be wary of if you are thinking becoming a commercial tenant

In the first of a series of short articles we discuss the risks of being a tenant in the world of Commercial Property Leases. The next article will look at leases from a Landlords perspective and the risks Landlords face with regard to protecting the value of their property investments

We have recently been acted in a sad case where the tenant has come to the end of their lease and presumed that the landlord would be “forgiving” of their financial and other lease obligations only to find that the Landlord has taken a commercial view on the obligations of their legal agreement and is expecting the tenant to carry out significant works. When we investigated the case it transpires that the tenant never understood or even read some onerous terms of the lease and consequently was severely financially embarrassed by their recently discovered obligations.

1. Check what you are signing up to. We see many situations where a tenant has a different expectation of the areas of buildings and land from that which the landlord has granted a lease. A prospective tenant must ensure that he checks the extent of his rights and restrictions before you commit to a forma lease arrangement
2. Understand your obligations. Commercial leases will contain numerous “terms” for a tenant to comply with; these are called covenants and are a tenants obligation to the landlord. Some of these covenants can be very onerous and WILL have a cost implication for you. Its important to plan for these departures particularly in this market where landlords are offering substantial incentives to attract occupiers. These incentives can have a sting in the tail and need to be fully considered
3. Check whether your lease is excluded from the provisions of the Landlord and Tenant Act 1954. If this is the case, and a formal procedure needs to be adopted to make sure you understand this to be the case, you have no rights to remain in the property after the end of the lease. We see tenants presuming they can remain in occupation when this is not the case and have not made alternative provision to re-house their business, the consequences can be dire if this is the case
4. Make sure you keep your building in good condition. This is important because if the landlord believes you are not ensuring the condition of his property he may attempt to force you to carry out repairs during your occupation.
5. Check what repairs you are obliged to do. In leases there will almost certainly be an obligation to carry repairs and reinstatements at the end of the lease. Even if you make significant and expensive alterations and improvements to the property you may still need to remove these at the end of the term at your expense. We regularly see tenants having to remove expensive shop fittings, IT installations, heating and air conditioning.
6. Make sure you plan for departure. And that you plan carefully for your surrender at the end of the term. This needs to be planned well in advance of the date upon which you vacate to ensure you put yourself in the best negotiating position and can properly allocate time and financial resources to your vacation. Don’t assume that the landlord will want to renew your agreement, often he will wish to redevelop the property and while this action may offset your financial and repair obligations there will be significant issues to resolve
7. Employ a proper an experienced lawyer.  It is essential that you have advice from a lawyer who deals with Commercial Leases regularly. The law is continually changing and test cases often change the emphasis of your obligations particularly with regard to the work to vacate the property it is essential that the person giving you advice is familiar and up to date with current case law
8. At Nick Bevan Consulting we believe in giving you more than you expected hence point 8! We have a very experienced team of Chartered Building Surveyors who are highly respected in this field, particularly in reducing the impact on Landlords claims for damages at the end of the term of the lease (referred to as dilapidations) please feel free to call one of our team for further practical, impartial and objective advice.

Contact Nick Bevan Consulting Ltd for advice on leases at www.nickbevan.co.uk

Britain on the cusp of escape velocity

Three of the country's top economists believe Britain has turned the corner and growth will accelerate in the coming months. Former Bank of England deputy governor Sir John Gieve and past rate–setters Dame DeAnne Julius and Charles Goodhart claim the economy has already reached or is about to reach "escape velocity" – the level at which a recovery is self–sustaining. Sir John argued that growth could recover "quite swiftly to 2.5% or more".

Construction sector turning a corner?

The construction sector is enjoying a rise in new building projects, a survey has found. A large decline in the sector "seemed to be turning a corner", according to a poll by the RICS. Activity now appears to be edging upwards, with 11% more surveyors reporting rises in workloads in the second quarter of the year compared with the same period 12 months ago. One-third more surveyors (33%) expect workloads to continue to rise, the survey suggests. Just over one-fifth (22%) think job opportunities within the industry will rise in the next 12 months.

At NBC we have noticed a significant increase in enquiries particularly in Party Wall advice which supports these survey results

New review of Portas Pilots says convert retail units into homes

A new review of Portas Pilots, the scheme to revive struggling retail centres, says there will be a consultation over the next six months on further relaxing planning regulations to allow the conversion of retail space on minor thoroughfares running off high streets into residential property. The new report by the Department for Communities and Local Government is exploring ways for businesses to find new premises more quickly, urging landlords to be more flexible with the potential to increase housing on the high street. The report said: "Together these reforms provide a substantial opportunity to bring more life into town centres and increase footfall.

Has the housing market really reached a 14 year high?

RICS reports housing market optimism at 14 year high

The latest RICS survey reveals optimism among surveyors over house sales is at its highest level for more than 14 years. Its findings for June point to the beginning of a recovery, with the month also being the strongest for house price increases in more than three years. A net balance of 45% of respondents, up from 36% in May, said they expected sales to rise in the next three months, the highest proportion since the index began in 1999. Peter Bolton King, global residential director at RICS, said: "We are finally starting to see what looks like the beginning of a recovery. Activity levels still remain depressed by historic standards but the various initiatives designed to encourage the provision of finance into the market do appear to be paying dividends". The survey also showed that a net balance of 23% of surveyors expected prices to rise. Meanwhile, the Herald reports that the RICS Scottish Residential Market Survey reported more homes were going on the market and more new buyers were also looking to buy their first property. Last month, a net balance of 59% more chartered surveyors reported a rise in new buyer enquiries, while almost three-quarters recorded a rise in newly agreed sales.

Landlords overlooking costs

According to a report by YouGov landlords have unrealistic expectations of property returns and are failing to consider the effects of a range of costs. The data from YouGov's Landlords and Mortgages 2013 report contradicts the view held by lenders that the buy-to-let market has improved since the financial crisis with lenders claiming that post-crisis investors are focused on long-term returns, while the YouGov data suggests that landlords were naively counting on "illusions" of gains. It said landlords' total returns were in long-term decline, despite reported evidence of rising rents with rental returns now between 1% and 4% compared with between 4% and 6% in the 2002-06 period. One reason for weaker returns was landlords' propensity to overlook costs. "While 93% consider mortgage interest payments, only 68% take account of agency fees and 46% budget for other management expenses," the report said.

The Sunday Telegraph, Money, Page: 4

Service sector growth fastest for 2 years

The UK's services sector grew at its fastest rate for more than two years in June, a survey suggests. The Markit/CIPS Services PMI for the UK rose to 56.9 in June, from 54.9 in May. A figure above 50 indicates growth. The survey adds to signs that the economic recovery is strengthening. Markit says it expects the UK economy to grow by at least 0.5% in the second quarter of 2013. "New orders and job creation across all sectors are now rising at the fastest rates for almost six years, led by the vast services economy, boding well for robust growth momentum to be sustained as we move into the second half of the year," said Markit's Chris Williamson.

The Times, Page: 38   The Daily Telegraph, Business, Page: 1, 4   The Independent, Page: 52   The Guardian, Page: 25  

Cable set to boost construction

The Business Secretary Vince Cable will today announce that building firms are to be given extra support to help them to compete for construction projects. The Business Secretary is extending the Government's trade credit scheme so large and small companies can get up to £25,000 in loans.

Daily Mirror

Further expansion at Nick Bevan Consulting Ltd

We are pleased to announce the appointment Ross Powell and Steve Austin, Chartered Surveyors at NBC Ltd

Ross Powell BSc Hons MRICS Chartered Building Surveyor

Ross Powell is a Chartered Building Surveyor who joins us from the renowned Malcolm Hollis Chartered Surveyors in Birmingham. He has worked in all aspects of Building Surveying but has concentrated on Dilapidation and Landlord and Tenant work, Project Management as well as Party Walls and investment and acquisition surveys on commercial premises both in the UK and Europe

Ross will bring additional resource and gravitas to our Project Management and Dilapidation service

Steve Austin BSc MRICS Chartered Quantity Surveyor

Steve Austin is a Chartered Quantity Surveyor and is involved in all matters of construction cost and contract management. Steve has over 34 years’ experience working in the Construction Industry providing contractual and procurement advice, pre and post contract financial management, feasibility studies, contract management, expert reports, settlement of claims including negotiation, preparation of property condition surveys and reports. He has acted for Clients providing a lead consultant role in preparing and managing scoring matrixes for OJEU, consultant appointments on education and sports/leisure projects. He has also acted as Expert Witness on a number of projects providing detailed analysis, witness statements and evidence where required.

Steve’s expertise will add greatly  our Contract Administration, Expert Witness and Dilapidation services

Nick Bevan Consulting the future

We are very proud of the team of consummate professionals we have established at NBC, we have developed a brand reputation of which we are duly proud and the latest additions to our team strengthen our offer and ensure customer service and professional performance are maintained .

The addition of Ross and Steve enables us to compete with the very best in the Country while maintaining our service style, professional approach and Commitment to our Community

Nick Bevan Consulting expands its team with appointment of a Quantity Surveyor

Nick Bevan and Steve Austin have worked together in a joint consultancy role over many years.  It is with great pleasure therefore that we are able to announce that Steve has joined NBC as a Consultant Quantity Surveyor.  Steve, a Chartered QS, brings experience, professionalism and practical knowledge to the business. Steve will continue to carry out the preparations of Bills and Contractors tenders but will also provide invaluable input to our Expert Witness division, and support our Landlord and Tenant dilapidations team, particularly with cost advice and expert witness reports on quantum.   

For more information about Steve and his experience please refer to the team section of our Home page. www.nickbevan.co.uk.

 

What effect has its formal adoption into the Civil Procedure Rules had on whether you will follow the Dilapidations Protocol?

At the recent RICS Building Surveyors Conference an interesting discussion took place on the effectiveness of both the RICS Dilapidations Protocol and its more formal relationship with the Civil Procedure Rules.

The consensus was that it was too early to tell BUT some interesting responses to a survey on the Protocol confirmed that, the adoption meant it was more likely that the Protocol would be followed, nearly 86% of surveyors follow the spirit or the strict detail of the regime, nearly 95% of Surveyors thought that the regime made it no different or more likely of a settlement before Court.

We believe it brings rigour, greater professionalism and is in both Landlords and tenants interest. 

How about you?

Construction sees strong jobs

The latest Manpower quarterly report shows a building recovery is providing the construction industry with the strongest outlook for jobs for five years. In a survey of more than 2,000 employers Manpower found that hiring intentions in the sector had risen to their highest in five years as building projects in the capital finally got off the ground again. While the construction of London's skyscrapers, including the Cheesegrater and the Walkie Talkie, were the main drivers behind the upturn, Crossrail also played a part. Manpower said that the recent improvement in the sector was vital because it had acted as one of the main drags on the UK economy over the past year. The report notes that Babcock has asked Manpower to recruit around 1,000 highly skilled permanent staff next year. The report also revealed that supermarket group Wm Morrison has asked it to find 1,500 more team members to support its plans to open 100 convenience stores around the country. A separate study published by the Organisation for Economic Co-operation and Development added to the belief that the economic recovery is gathering momentum reporting that the UK economy is expanding a little above its forecast trajectory in April.

The Daily Telegraph Online   The Times, Page: 36   Daily Mail, Page: 66

Has the Dilapidations Protocol changed the way surveyors interact?

From our experience - yes. With the introduction of a tenant’s surveyors’ endorsement in connection with the response – parties seem to be closer than ever in agreeing what is reasonable in terms of quantum. However, we have seen an increase in tenant’s exercising their break clauses, shorter lease terms often backed by a Schedule of Condition and as a result significant time expended on the legal interpretations of the repair and yielding up covenants.

Some exciting case law has recently further defined the definitions with regard to Section 18 valuations, the costs of the works and the landlords intentions. We intend to hold a seminar in the near future to discuss these matters in further detail.

Nicola O’Connor, Operations Director at Nick Bevan Consulting says “we are pleased to see that over the last 12 months the level of reality has increased over the real value of claims and that parties are much more pragmatic about the state of the market and veracity of their claim”

For more details and honest advice from the real experts in this field please contact us through our web site www.nickbevan.co.uk

The Jackson reforms

New obligations for experts

New reforms of the justice system came into effect on the 1^st April 2013. Lord Justice Jackson was tasked with reviewing the current way in which costs of civil litigation are managed in an attempt to introduce “proportionality” to the costs of going to court. The new rules will also curtail “no win no fee” arrangements and referral fees will be banned.

How does this all affect the expert witness?

Prior to this change the costs of a claim grew through the case and were largely uncontrolled. Post reform costs must be proportionate and also have been reasonably incurred both in terms of relevance and also the claim size. The court will only allow costs that are proportionate and where they relate to the matters of the case.

On this basis, costs related to fees will be assessed by the court and if the total figure for costs is not regarded as proportionate the court will make an appropriate reduction, experts need to beware! It is essential that experts properly prepare fair, reasonable and “proportionate” fee estimates for their instructing solicitors to ensure that professional fees are not reduced at the end of the case, taking into account that they should be reporting on the key issues and not addressing matters that are of little relevance to the synthesis of the case.

Other Jackson reforms affecting the expert witness

Additionally Jackson formalised the concept of concurrent expert evidence, “hot-tubbing” in an effort to reduce time and cost. This process involves the experts giving evidence concurrently and should enable the courts to focus on the synthesis of the case and get at the relevant facts.

Comment

Nick Bevan, Chartered Building Surveyor and experienced expert witness says “I have experienced hot-tubbing first hand and found the process to be highly beneficial in the desire to achieve speed and justice. It gave the experts the opportunity to be jointly cross examined by both the Judge and Counsel and I’m sure significantly reduced the time spent in Court. As for fee estimates, my view is that some experts fear compression of professional fees but I’m firmly of the view that most experts are already providing good value for money and are providing detailed estimates for their services, so the reality is going to be no different post 1^st April than was the position prior to the reforms. The expert’s duty is to the Court so providing a good service for proportionate fees is merely part of that process”

Aviva plans to enter the rented housing sector analysed

The FT’s Ed Hammond says that Aviva’s plan to enter the UK’s rented housing sector highlights a structural shift in the country's letting market at a time of acute housing shortage. He notes that people close to the plan have said that Aviva may do a deal with A2Dominion to take control of thousands of homes in London and the south-east of England. The deal would involve the groups launching a special purpose vehicle that would build a mix of social and open-market rented houses. Under the plans being discussed, Aviva would take control of a portion of the homes to provide seed funding for a private rented portfolio. Mr Hammond believes that such a deal would be welcomed by the government, as it has been keen to encourage institutions to become landlords as an alternative to buy-to-let investors. He also notes that until the late 1940’s insurers and pension funds were amongst the largest owners of residential property in the UK.

Financial Times, Page: 15

New Instruction on Victoria Gate, Leeds

Nick Bevan Consulting Ltd are pleased to confirm that they have been instructed as Access Consultants for the new Hammerson plc development at Victoria Gate, Leeds, a key retail development in the City centre. This Instruction coincides with the positive news from commercialnewsmedia.com that the Leeds Office Agents’ Forum has advised that the Leeds office market, for the first three months of 2013, shows a healthy improvement in activity compared with the same period last year. Total take-up of offices transacted in Leeds city centre reached 235,001 sq ft across 35 deals which is a 51% increase compared with the same period last year (155,847 sq ft).

 

Nick Bevan said “the instruction to provide Access Consultancy services to this significant development, that includes retail arcades, a multi storey car park and a new department store, is very gratifying.  We have worked with Hammerson for several years on a number of shopping centres and this new instruction shows faith in our services which we really appreciate”.

 

Stamp duty avoidance

The Sunday Times reports that HMRC is investigating cases of homeowners suspected of using stamp duty mitigation schemes which take advantage of loopholes to reduce the amount of tax due. Earlier this month a City banker, Edward Allchin, lost a case with HMRC over a scheme that used sub-sale relief to cut stamp duty on the purchase of a £2.5m town house. A tribunal ruled that banker's technical tax arrangement did not qualify for the relief making him liable for nearly £90,000. A further 190 homeowners have been investigated for using similar schemes and will now have to pay a total of £7m. HMRC can review purchases made up to six years ago and is sending "discovery letters" to households it suspects may have underpaid. Accountants have warned that some homeowners, who believe they have paid the correct tax, get caught out as in some reported cases, solicitors have entered a lower value for the house in the stamp duty return, resulting in a reduced payment. Richard Turner, corporate tax manager from Menzies, the accountant, said: "While the majority of property transactions are relatively simple, the more complex the case, the higher the risk of error being made."

The Sunday Times, Money, Page: 6

Empty offices ripe for conversion

According to research of 32 regional markets by Lambert Smith Hampton, Birmingham has the most buildings in the right location with suitable layouts and residential demand to be turned into homes. Ian Leather, regional director of office agency at LSH, said: "In the last 20 years, the amount of allocated space per person in an average UK office has halved. Put simply, obsolete office space is a drag on our market and offering investors and developers little or no value. However, the return from converting to residential accommodation is far greater and is an obvious step for any investor or developer."

The Birmingham Post, Page: 30

Peers back revised home extension plan

Peers back revised home extension plan

The House of Lords has backed government plans to allow people to build bigger home extensions, after ministers made concessions. The government amended its proposals to ease planning rules in England by giving neighbours the right to be consulted on building work. Lord True, who had opposed the original plan, called it a "significant change". Despite backing the new approach, peers raised concerns about the plan's details and urged further consultation.

BBC News    The Daily Mail, Page: 17

FLS to be expanded

FLS to be expanded

George Osborne will announce an expansion of the £80bn funding for lending scheme (FLS) ahead of a visit to Britain by the IMF next month, as he seeks to head off calls for a softening of government austerity plans. High-street banks are to be given added incentives to extend credit to SME's. The FT reports that the scheme is yet to prove itself but that it is seen by policy makers as more important than ever to economic recovery efforts, but the expected announcement of an extension to the scheme will increase scrutiny of how well it is working. Net lending contracted by £2.4bn in the fourth quarter of 2012 according to BoE figures published last month, the first period where any meaningful improvement owing to FLS would have been seen. The next set of quarterly lending data, to be unveiled on June 3, will be vital in determining the scheme's success or failure.

The Guardian, Page: 21   Financial Times, Page: 2

The Jackson Reforms

The Jackson reforms came into force on 1 April 2013. Though aimed primarily at personal injury litigation, the reforms will affect commercial litigation.

The technique of concurrent expert evidence (known as “hot-tubbing”) has also been introduced as an optional procedure to be adopted at the direction of the judge, i.e. whether or not the parties agree. The technique involves hearing evidence concurrently from the experts in a particular discipline, rather than having each expert give evidence and be cross-examined separately.

Clarity demanded over extensions

Clarity demanded over extensions

Campaigners have demanded clarity from the Communities Secretary Eric Pickles after his department refused to give details of how far he was prepared to backtrack over planning reforms for extensions. Critics have argued that the plans will blight communities and could set neighbour against neighbour. They said yesterday that any change should allow neighbours to object if they believed a planned extension was too big. The Liberal Democrat MP Paul Burstow, who voted against the plans, said: "The cardinal principle is the right for neighbours to have their views taken into account. Without that, there could be poisonous consequences. The Government won't get this through the Lords unless he reinstates that principle." A DCLG spokesman said no details of the compromise will be announced before next week. Meanwhile, an editorial in the FT says that the UK has to address public hostility to development. It says that the housing shortage and resulting high prices are making home ownership seem a pipe dream for an entire generation and that the Government cannot just be on the side of those who own property.

Financial Times, Page: 12    Daily Mail, Page: 27

For more information contact Nick Bevan Consulting Limited

Chartered Building Surveyors delivering property and construction advice with innovation and experience

Chartered Surveyors | Landlord And Tenant | Development Consultancy

Commercial Property Agents | Disability Access Consultants

www.nickbevan.co.uk

Property asking prices up in April

Property asking prices up in April

Rightmove's latest property survey reports that average asking prices of homes advertised on the site rose for the fourth month in a row in April, up 2.1% so far to £244,706. The number of properties on the market in April was 28,179, down 4% on the same month last year. Rightmove also reported that the gap between the sums that sellers were asking and buyers were willing to pay had narrowed and that properties were now spending an average of 73 days on the market, about 10 days less than in April last year. Comparing its asking price figures with the price houses are selling for, recorded by the Land Registry, Rightmove said the gap had narrowed from 3.39% in December to 2.95%.

For more information contact Nick Bevan Consulting Limited

Chartered Building Surveyors delivering property and construction advice with innovation and experience

Chartered Surveyors | Landlord And Tenant | Development Consultancy

Commercial Property Agents | Disability Access Consultants

www.nickbevan.co.uk

Construction Market Contracts in March

Construction contracted in March

The Markit/CIPS Construction PMI has shown that construction output contracted in March for the third month in a row. The index inched up to 47.2 from 46.8 in February, holding below the 50 level that separates expansion from contraction and slightly undershooting forecasts for 47.5. Markit said that unusually cold weather combined with sluggish underlying demand kept a lid on construction work in March. "The negative print for construction output mirrors that seen for manufacturing, and now leaves the service sector as the last great hope for avoiding another slide in UK GDP," said Tim Moore, senior economist at Markit.

Source The Guardian, Page: 30    The Independent, Page: 54