Government criticised for not listening over business rates

The government's report into the future of business rates has been called a sham by critics who argue that ministers didn't take any advice from businesses and representatives. Officials also failed to speak to Dutch counterparts despite being told by experts that the system in the Netherlands is similar and where business rate revaluations have been held yearly since 1997. Ruud Kathmann, of the Netherlands Council for Real Estate Assessment, said of the reform: "By a more frequent revaluation the differences between the previous assessed value and the new one would become smaller and that is easier to explain. Therefore we also expected a lower number of appeals." A report by the British Property Federation has called on ministers to learn lessons from overseas. Paul Turner-Mitchell, who wrote the report, said: "Businesses are getting fed up with the Government constantly asking for their opinions on how to create a simpler system and then ignoring the advice. The perfect example to learn from, yet the authorities didn't bother even making a phone call."

Business rates to be reviewed

George Osborne will announce a review into the structure of business rates which will be completed by early 2016, in his Autumn Statement. Experts have warned that the business rates system unfairly punishes high street firms with large properties and unfairly benefits online retailers with small premises. Some experts are calling for business rates on small premises to be scrapped altogether, arguing that of the 1.7m commercial properties on which business rates are paid, about 1m are used by small businesses. However, if such firms were exempted from business rates, it would reduce the Government’s take by only 6%. Simon Tivey, a rating expert at PwC, said: “There are huge numbers of very small properties that are contributing very little to the rates tax pot but no doubt costing significant sums out of the Valuation Office Agency’s £100m budget to administer.” One proposal submitted to the chancellor is for these small locations to be “bundled” rather than individually assessed for ratings.

Supermarkets must close one in five stores

Analysts at Goldman Sachs have warned that Britain’s biggest supermarket groups must close one in five shops to turn around their performance. In a report on the grocery industry, Goldman said the retailers had to close stores in order to reduce their cost base. Analysts said this would then allow them to compete with Lidl and Aldi, and grow profits. “Our analysis of the UK grocery industry suggests capacity exit is the only viable solution for a return to profitable growth,” Goldman said, adding that store estates needed to be reduced by around 20%. The analysts said that if current trends continue then sales in large out-of-town supermarkets will fall by 3% every year until 2020. This would mean that sales in larger stores fall by 18% over the next six years. Separately, Chris Keen of CBRE said that grocery retailers had added 3.2m sq. ft. of space last year but were likely to reduce this to 2m sq. ft. next year. He said that supermarkets were allocating more space to non-food activities. "We'll see more space given up to concessions, to sublets, to things like gyms. Supermarkets will have more of a department store feel."

Self-build home applications tumble

Construction data has shown that the number of self-build home applications have declined over the past four years, with a total of 16,792 applications submitted in the first three quarters of 2008, compared to 12,159 over the same span this year. In Wales, applications are down 62%, while in the Midlands and East Anglia they have fallen 35%. The Independent i, Page: 46, 47 The Independent, Page: 43

RICS: Market is in Mexican standoff

RICS has claimed that the UK’s real estate market became trapped in a “Mexican standoff” during October, as buyer demand fell for the sixth consecutive month, the longest streak of falling demand seen by RICS members since 2008. Across the UK, a net balance of -18 was recorded in its residential Market Survey, however, in some areas this fluctuated significantly. In London, 62% of property agents reported a reduction in buyer interest over the month – far above the national average. Just 41% of homes listed on the market in London were sold in October, while the level of available stock increased. The body’s house price balance fell to +20, from +30 in September. The drop was driven by a fall in London to -35, down from September’s -9. Anthony Codling, property analyst at Jeffries, says that there is a significant gap between price expectations and what buyers are willing to pay, a gap “which needs to close”. The trend was not observed in Scotland

How art influences house sales

A new report has suggested that houses with prints of Mark Rothko art on the walls are likely to sell quicker than those without. On the other hand, homes with overly-familiar prints of work by Monet, or similarly well-known artists, are likely to take longer to find a buyer. The Standard speaks to estate agents and interior designers who have conducted research on art’s effect on the speed of house sales, breaking down schools of expression as well as individual artists’ influence on the process. Evening Standard, Page: 23

Smells like home

Barratt Homes is trialling a perfumed reed diffuser which dispenses the smell of a home-cooked roast dinner at one of its Wakefield show homes. Research conducted by the company found that one in six adults prize the right smell in a property as making it feel like home, with roast-dinner the favourite, followed by coffee and warm cookies.

Britain most prosperous large economy in EU

The Legatum Institute's 2014 Prosperity Index has found that Britain is the most prosperous of the large economies in the European Union, but still lags behind countries such as Switzerland and Norway which chose not to join the bloc. The Index found that Norway was the most prosperous country in the world, with Switzerland at number two in the list. Britain is ranked at number 13, three places higher than last year's index, and one spot ahead of Germany. However, Britain was outranked by Ireland, Denmark and the Netherlands, as well as New Zealand, which came third. The United States came tenth.

House prices fell in seven out of ten regions

Figures from the Land Registry have shown that in September, house prices fell in seven out of ten regions in England and Wales, with overall prices down by 0.2%. Annual house price inflation also fell from 8.4% in August, to 7.2% in September, taking the average property in England and Wales to £177,299. The largest monthly decline was in Yorkshire and Humberside, where prices fell by 2.2%, while the average price in greater London dropped by 0.7% or more than £6,500, during the month. Meanwhile, according to the Registers of Scotland, the average cost of a property in Scotland between July and September was £170,190, up 5.2% on the same period in 2013. The total volume of sales was also up, with an increase of 9.1% on the same quarter in the previous year. A separate report by CBRE has shown that house prices are a third cheaper in locations 30 to 35 minutes’ commute from central London, and that an increase of one minute in travel time reduced a house’s value by about £11,400.

Japanese knotweed fines

The Telegraph reports that householders who fail to control Japanese knotweed in their gardens can now be prosecuted and fined thousands of pounds for anti-social behaviour under new Home Office rules. The new guidance explains how council officers or police can use community protection notices to "stop or prevent" people growing Japanese knotweed if it causes problems.The plant damages underground pipes, buildings and boundary walls, and grows in cavity walls as its tentacles seek out light.

RICS highlights construction industry concerns

RICS has warned that an increase in building work in the UK has exacerbated a staff skills shortage and decimated the available supply of materials. The institute surveyed the construction industry, finding that three quarters of respondents bemoaned a lack of bricklayers, while 71% agreed that rising demand since the last quarter posed a problem – up from 59% who agreed with the same sentiment in RICS’ second quarter survey. A net balance of 58% of respondents claimed finance was limiting their construction capabilities, with a similar proportion stating that planning laws were inhibiting them. The survey also found that 46% more surveyors reported a rise in activity, the eighth consecutive quarterly rise in workloads. Jobs secured in the private commercial sector reached a net high, while private house building grew in all parts of Britain. Additionally, Begbies Traynor found 12% less construction and property businesses in “critical” financial distress in the third quarter than in the second.

BoE system crash delays purchase of 2,450 homes

The Bank of England has launched an investigation into how one of the central pillars of the UK’s payments infrastructure collapsed for 10 hours, delaying hundreds of billions worth of deals. BoE governor Mark Carney pledged to discover what had gone wrong and whether officials had responded properly after the enforced closure of the £277bn-a-day Clearing House Automated Payments System (CHAPS), which affected thousands of house purchases and major interbank money transfers. The system was kept open four hours after its usual closing time on Monday evening to deal with a backlog of transactions - including the purchase of 2,450 homes - following what is believed to be the biggest shutdown in its 30-year history. At 6am, part of the Bank’s overarching Real Time Gross Settlement payment system, which processes transactions between banks, had been taken offline, leading in turn to the failure of the CHAPS, responsible for high-value payments and housing deals.

Drop the stamp duty "slab" system

The Times' Anne Ashworth says that the chancellor should follow the Scottish lead on stamp duty and move away from the "slab" system and introduce a marginal rate system. Ms Ashworth explains that in the short and long-term this would help first-time buyers.

Unemployment falls below 2m

Figures show the UK unemployment total has fallen below 2m for the first time in almost six years. The number of jobless people fell by 154,000 to 1.97 million in the three months to the end of August, the ONS said. The drop, which is bigger than analysts expected, took the unemployment rate to 6%, its lowest level since late 2008. The employment rate is now 73%, close to its all-time high of 73.2%. Chancellor George Osborne said the fall in unemployment was "evidence that our long-term economic plan is working". Financial Times, Page: 2

House prices have risen less than cinema tickets

A new study of inflation since the Seventies by eMoov reveals that the cost of cinema tickets, stamps and cigarettes have all grown quicker than house prices over the past forty years. The average price of a house in 1974 was £9,927 with prices rising by 1,879% to £186,544 today. Cinema tickets rose in the same time by 2,133%, while a first-class stamp has risen from 3p in 1974 to 62p today a rise of 2,067%. Cigarette prices leapt 4,370% over the period, the highest rate of inflation in the comparison. At the other end of the scale, the price of flights has risen by 482% with a trip to San Francisco costing £225 in 1974 compared with £1,084 today. The Daily Telegraph, Page: 8

What will become of Tesco’s property empire?

Tesco has scrapped plans to build an 82,000 sq. ft. superstore on Margate’s seafront. “We are reducing the number of large stores we open each year as a result of changing customer shopping habits. After careful consideration we have therefore decided not to pursue a new large store in Margate,” explained a spokesman. Separately, Peter Bill in the Evening Standard considers what might happen to Tesco’s 110m sq. ft. of unvalued buildings and land worth £20bn, after it discovered a £250m black hole in its profits. Mr Bill believes the retailer may move away from plans to become a mid-sized house-builder as it shifts focus back toward its core business, despite stating it would construct residential developments on land it no longer requires for outlets

Buildings to become more energy saving?

The incentive to make buildings more energy-saving has been stifled by valuation techniques and the way the UK leasing market operates. However, there has been a seismic change in fund and asset management strategy within the larger UK property funds and real estate investment trusts (REITs). Managers are beginning to take energy efficiency very seriously in particular, a building’s energy performance certificate (EPC).

This is largely a result of the Energy Act 2011, and its requirement for minimum energy efficiency standards known in the property market as MEPs ( minimum energy performance standards) – which are tied to a building’s EPC. In July this year, the government released its consultation on the implementation of the legislation and its energy efficiency regulations of the non-domestic private rented sector in England and Wales. The consultation has re-affirrmed the likelihood of an MEPs threshold of an E-rated EPC. The proposal is that rental properties that require an EPC under the EU Energy Performance of Buildings Directive will also be subject to MEPs . From 1 April 2018, all new lettingswould be subject to minimum standards, and from 1 April 2023 a regulatory backstop would apply meaning all let properties must comply with legislation.

The Act introduces a mechanism for identifying qualifying energy conservation measures known as the Golden Rule and mandates their installation. The Golden Rule is that repayments for improvements, including any interest charges, must be the same or less than the expected energy bill savings in the first year.

Properties rated F or G that are captured by the legislation will need to undergo a due process linked to this rule. If, afterwards, they remain F or G rated, only then may they be let.

If a property cannot be let, rental income will be lost until it is compliant. Because of the way rent reviews and lease renewals operate, there is also a risk of reduced rent if an E+ rated EPC is the result of an occupier’s fi t out, rather than the landlords’. The Energy Act 2011, therefore, introduces a market dynamic with the potential to affect value and/or the amount of finance secured against an asset – be this directly, or indirectly through utility bills.

Manufacturing and construction output slows

Manufacturing firms have suffered a sharp fall in domestic sales and orders, according to the British Chambers of Commerce, which could sound “the first alarm bell for the UK economy" says the group’s director general, John Longworth. The balance of export sales fell from 30% in the second

Mortgage supply falls to two year low

Data from the Bank of England has shown lending to home buyers has fallen to its lowest level in two years suppressed by the strict regulations that now govern mortgage applications. The BoE’s Credit Conditions Survey showed that for the third quarter of 2014, lenders reported the biggest fall in the amount of credit they were able to supply since the last three months of 2008. This was due to reduced risk appetite and concerns about the outlook for house prices, and came shortly after regulators required them to impose tighter affordability checks on new borrowers. Many lenders noted that operational issues associated with the implementation of the Mortgage Market Review had pushed down on credit availability over the summer," the Credit Conditions survey read. However, the report showed that the banks and building societies expect lending to return to healthier levels in the next three months.

Asbestos victims win damages ruling

Government plans to deduct legal fees from the damages paid to people dying from asbestos exposure are unlawful, the High Court has ruled. The Asbestos Victims' Support Groups Forum UK brought the action against Justice Secretary Chris Grayling. The group challenged his decision to allow 25% of damages awarded to mesothelioma sufferers to be used to pay legal insurance premiums and costs. The Ministry of Justice said it was "disappointed" with the judgment. Mesothelioma is an aggressive cancer caused by exposure to asbestos.It can take decades to develop, yet people live for an average of just nine months after diagnosis. Around 2,000 people are diagnosed each year, and the numbers are set to increase over the next 30 years. Many people seek compensation by taking legal action against their former employers or the employer's insurance company.
Read more about it in this article: http://www.bbc.co.uk/news/health-29462702

Stamp duty revenues hit £6.5bn

Latest figures show buyers of million-pound houses paid almost £2bn of stamp duty last tax year. The government raised a total of £6.5bn from residential stamp duty land tax in 2013-14, an increase of 31% year-on-year. “These figures should dispel the myth that high value property does not make a significant contribution to the tax take," said Lucian Cook of Savills. Addressing the Conservative Party conference, Boris Johnson bemoaned the cost of stamp duty for Londoners, after data revealed the average London homebuyer was hit with a stamp duty bill of almost £16,000 in the year to April – more than three times the national average of £5,200. Paula Higgins of the Homeowners Alliance echoed Mr Johnson’s comments, warning that the majority of people across the capital are now paying “silly amounts in tax - £15,000 to £30,000 on average - to own a home.”

Mortgage lending at three month low

Bank of England statistics have shown that loans to homebuyers fell to a three month low in August, with approvals falling from 66,100 in July to 64,212. Matthew Pointon, property economist at Capital Economics, said the “rapid deceleration” is due to expensive house prices. The Bank of England has pointed to the introduction of the Mortgage Market Review - which tightened lending criteria - as a cause. However, data from the National Association of Estate Agents shows the number of first time buyers has increased for the first time since April this year. Its survey indicates that 28% of sales were to first time buyers in August. Meanwhile, the Bank of England is preparing to deliver its verdict on Thursday as to whether new powers are needed to guard against risks building up in the housing market following the introduction of the Help to Buy mortgage guarantee scheme

Amberfield land

RICS has suggested that an “amberfield” land classification should be introduced in the UK. Local authorities would be required to set a quota for such land, which they would then be required to build on within five years, under the proposals. The institution believes that the change would boost housing supply and development opportunities.

Yes vote could create mortgage drought

The Guardian reports that borrowers in Scotland face a mortgage drought if next week's referendum backs a split from the rest of the UK. It says that major lenders are thought to be preparing to restrict lending in the event of a Yes vote amid concerns over the currency that an independent Scotland would use and the outlook for house prices. One industry insider tells the paper that there have been signs that the market for homes worth more than £600,000 in Scotland is drying up in the run-up to the vote, while in the commercial property arena deals are being put on hold until the vote was known – and could be abandoned in the event of a Yes vote. Elsewhere, the Daily Telegraph cites a Which? report that found Scotland to have a larger burden of mortgage debt than England and fewer citizens who fully own their homes, and reveals that a surge in customers contacting finance firms over Yes vote fears has been registered.

Scottish uncertainty stalls market

The Daily Telegraph speaks to Strutt & Parker partner Robert McCulloch on the Scottish property market stalling pre-referendum. "I would be surprised if any agent does any business in September. Ordinarily it is the most active period for us; we log a lot of sales. But the market is very, very cautious. There are so many uncertainties. It is difficult for any potential purchaser to know what to believe…. The fact is no market thrives on uncertainty,” says Mr McCulloch. Separately, the Daily Mail reports on the same subject, quoting Mark Coulter of Coulters estate agents who says: “Since August we've been getting noticeably far less calls and enquiries. You could have a flood of properties for sale as people jump ship to move to England.” Finally, the FT looks at the referendum’s effect on Scotland’s commercial property market. The paper notes that investors are moving hundreds of millions of pounds out of Scotland and adding “exit clauses” into commercial contracts to allow buyers to alter or scrap deals altogether if a Yes vote is registered.

Office-to-residential exemptions to be scrapped

The Government has revealed plans to extend its office-to-residential conversion policy by scrapping the exemptions some councils had from the scheme from 2016 onwards. However, the FT reports that according to the latest figures the amount of available office space across the UK is falling at a record rate due partly to the policy's introduction in May 2013. Figures from Colliers show that 800,000 sq. ft. of office space has been lost in Westminster alone since the policy was introduced, while a further 1.8m sq. ft. of offices in the borough are awaiting conversion to homes. Paul Smith of Colliers said that the policy is adding pressure on an office supply pipeline that is already struggling to keep up with demand.

Just like magic

Over 50 builders, engineers and craftsmen have created a 40-foot building out of a polystyrene called Filcor. The building will float over 10ft in the air as part of an art exhibition in Covent Garden.

Rogue landlord billed £10,000

A London landlord who let a shed for £750 a month, has been ordered to pay £10,000 to Hillingdon Council, which was forced to demolish it after the landlord refused to evict its tenants and destroy it himself in the three month period he had been given. "This enforcement work is part of an ongoing project to clamp down on beds in sheds. The council has a special taskforce of officers dedicated to investigating and taking action against rogue landlords,” said a council spokesperson.

£3.4m for first home

A child born today will pay £3.4m for their first home, according to research by eMoov.co.uk. The online estate agent studied historic house price data since 1954 and found an average annual increase of 8.6%. At the current rate of growth, the house price in 2048 - when a child born now will reach the typical age for a first-time buyer - could hit £3.4m. Even children now aged ten face paying more than £1.6m for a property, requiring a deposit topping £320,000. A youngster now four will most likely need £2.65m for a home. By 2032 the average 20% deposit needed will top £200,000. Of those polled, 67% said they expect to financially help their children get on the property ladder. Russell Quirk, founder of eMoov, said: “Our research shows the staggering truth about prices. If the trend continues, the Bank of Mum and Dad will be even more important."

MPC split on interest rates

Two members of the Bank of England’s MPC voted to raise interest rates in August, the first time in three years that policymakers have done so. The minutes of the most recent meeting show that Ian McCafferty and Martin Weale voted for a 0.25% rise to 0.75%. On the back of the news the pound jumped in expectation that rates may rise sooner than expected. Sterling rose by 0.2% against the US dollar to $1.66. The minutes showed that despite low wage growth both Mr Weale and Mr McCafferty felt that rapidly falling unemployment made it more likely that salaries would pick up in the coming months. The prospect of a rate rise prompted Persimmon and Barratt Developments to lose some of the ground they gained earlier this week, as they fell 27p to 1323p and 9p to 359.6p respectively. The Daily Mail carries a guide explaining the possible effects of a rate rise on readers’ mortgages.

Solar farms could open backdoor to greenbelt

The Campaign to Protect Rural England has expressed concerns that plans for almost 200 solar farms are under consideration for greenbelt land, and that their acceptance could open the protected areas to housing developers. The group has said that current agricultural land that hosts solar farms could be declared brown field when agreements come to an end. “Planning conditions should require that solar sites continue to be classified as agricultural land throughout their life,” the campaign stated. The Times, Page: 13

Walkie Talkie not so Scorchie

The 500ft tower at 20 Fenchurch Street, London – nicknamed the Walkie Talkie – has had its entire south side draped with black netting, in order to reduce the glare created by its unique glass architecture. Last summer, it produced temperatures of up to 110 degrees Celsius, enough to blister paintwork and melt the bodywork of vehicles parked below.

Rising costs hitting builders

Construction firms are being hit by rising material costs and a chronic skills shortage, making the cost of tendering work climb rapidly. Four in five building firms surveyed by the National Federation of Builders (NFB) said that they had experienced rising costs, with 95% having to spend more on materials and three-quarters spending more on labour. Almost half of respondents said they had found it especially difficult to hire bricklayers and carpenters. "The good news is construction output is rising. However, higher tender prices, materials and labour costs and difficulty in securing skilled labour at reas

Buyer demand cools

According to the Royal Institute of Chartered Surveyors (Rics), buyer demand for property fell for the first time in a year and half in July. Rics said that in London, which has seen annual increases of 20%, indicators such as sales queries were "going into reverse". Across the UK as a whole, Rics predicted 4.7% growth in house prices in the next year, down from 5.9% in March, while in London the forecast has dropped from 9.3% to 4.6%. The survey results came as the Bank of England downgraded its forecast for growth in mortgage approvals, saying this would be a "little less buoyant than previously thought" with a "degree of moderation" in the pace of price increases. The Bank also said that the dampening effect of tighter borrowing rules on the housing market was transitional and was wearing off. Separate figures from e.surv also showed a fall in buyer activity.

Retailers call for business rates reform

Campaigners and retailers have called on the government to urgently review the business rates system, after it emerged that businesses were accumulatively overcharged around £2.1bn over the past five years. Industry experts take issue with the fact that retailers in less affluent areas have seen their rates become artificially high due to a drop in property values, while retailers in thriving areas have seen relatively lower rates due to rising property values not effecting their bill. The Independent, Page: 51 Independent I, Page: 40

Recovery threatened by skills shortages

A survey of 616 business leaders for The Prince’s Trust and HSBC’s Skills Crunch report has found that more than two thirds believe that a shortage of skilled workers threatens to halt the economic recovery. Just over half say they struggle to fill vacant roles and a third say they are witnessing a lack of trained applicants for entry level roles. A separate study by the Institute of Chartered Accountants and Grant Thornton found that the construction, utilities and IT sectors were hardest hit by skills shortages. The Prince’s Trust is calling for employers to provide more vocational training.

The building industry's "lost decade"

According to the Construction Products Association, activity in the UK building industry will not return to pre-recession levels until 2017. Noble Francis, economics director of the CPA, called it a "lost decade" for the building industry as building has fallen by 13% since 2008. Housing starts rose 21% in 2013, compared to the year before, driven in part by government support, and the CPA forecasts an 18% rise this year and 10% in 2015. However, it warned that potential interest rate rises and post-election uncertainties over the future of Help to Buy could constrain growth. Commercial construction is also expected to improve and the CPA predicts 23.4% growth in the next four years.

Family homes halve in size in under century

A new report from the Post Office has found that the average size of a family home has almost halved over the past 90 years. The report compared newly-built, semi-detached houses in 1924 with the average home being built today. It found many of the former had four bedrooms and an average size of 1,647sq ft, while today's typical home is almost half that size - with three bedrooms and only 925sq ft. The difference, of 722sq ft, is the equivalent of two double-bedrooms. The reports also revealed that almost one in three parents has sacrificed the biggest bedroom in the house to their children.

Housing bubble deflating

Land Registry figures have shown that house price rises in seven out of 10 regions in England and Wales slowed in June. The most dramatic change was in London, where prices rose just 0.1% in June to an average of £437,608, up £536. Experts believe tougher mortgage rules, concerns over an interest rate rise and the strength of the pound have combined to bring growth almost to a complete halt. In the South East, prices rose 0.6%, down from the 1.9% increase registered in April. "I think we have been in a bubble in London and some pockets of the South East. That bubble may now be deflating. There's been a lot of evidence that prices in London and the South East have been losing momentum but nothing with hard data. The Land Registry figures are reliable - although a little dated - but they are gospel,” said Howard Archer, chief UK and European economist at IHS Global Insight.

IMF raises UK forecast

The IMF has upgraded its forecast for UK growth, from a 2.8% to a 3.2% expansion of the economy. Its forecast for global economic growth this year has been lowered however, from 3.7% to 3.4%. Figures due to be published shortly by the ONS are also expected to show second quarter growth in the UK of 0.8%. Writing in the Guardian, Ed Balls acknowledges the figures show an improvement, but maintains Labour's “radical and credible economic plan” is the only way to make Britain “better off and fairer for the future.” In the Evening Standard, Anthony Hilton warns that although the figures highlight the UK’s continuing economic recovery, concerns remain over widening inequality of wealth in the UK.

Eco-home can stay without planning permission

An eco-home made from old tyres and wood crates built without planning permission can stay because of new planning rules, a planning inspector has ruled. Matthew Lepley and Jules Smith built their home in a field in Beaworthy, Devon, having decided not to apply for planning permission as a matter of principle. Neighbours complained and they were ordered by Torridge District Council to leave by February. But in a landmark ruling planners have praised their “passion” and “commitment” to sustainable living and said the building could remain for three years in which time the couple need to prove they are sustainable. Gareth Symons, a planning inspector, said that building was in line with the new National Planning Policy Framework which introduced a new bias in favour of “sustainable development” when it was unveiled in March 2012.

“Midlife stopgap” renter numbers growing

New research from Experian shows that high house prices have forced many single people between the ages of 35 and 55 into small rental accommodation or flat shares. Termed "midlife stopgap" these individuals who are either single or newly separated have become the largest group of renters in the UK, after students, the report found. This group tend to be in full-time employment on an average salary of £20,000 to £29,000. "Renting is no longer the preserve of the young career starters but we increasingly see groups of older people and people of varied wealth joining them," said Nigel Wilson, marketing director at Experian.

Sales to first-time buyers fall

Figures from the National Association of Estate Agents reveal that overall sales made to first-time buyers fell from an average of 25% in May to 20% in June, the lowest level since May 2013. The figures also show that buyers aged 18 to 30 represented just 3% of the total down from 12% for the same month a year ago. While the number of available properties increased to an average of 46 per branch compared to 44 in May, the number of house hunters dropped from an average 374 to 371. Mark Hayward, MD of the NAEA, said: "Things are getting even tougher for first time buyers. Not only do you now need to stump up ridiculously large sums of money in terms of deposits and stamp duty to be able to get on the ladder, but new rules mean buyers will also have to prove they can easily afford repayments now and in the future." Paula Higgins, chief executive of the Home Owners Alliance, commented: "The door is closed to a generation. Young people feel so disenchanted that they are living in their childhood bedroom when they are 35."

House prices slide

House prices have fallen for the first time this year, according to the latest figures from Rightmove. Would-be house sellers lowered asking prices in July, amid stricter mortgage rules and increasing fears of an early interest rate rise. The average asking price on the property portal has fallen by 0.8% in the month to £270,159. Rightmove director Miles Shipside said confidence among buyers may “have taken a knock with suggestions that mortgages are becoming harder to get and repayments may get more costly sooner than originally anticipated.” The fall in asking prices was widespread across England and Wales, and included the south-east and Greater London. Only the north-west, the West Midlands and East Anglia recorded a rise. The north of England and the east Midlands suffered the biggest declines of 1.9% each, and house prices in Greater London dropped 0.4%. However, Rightmove increased its growth forecast for house prices this year as a whole to 8%, the top end of the 6% to 8% range set at the start of the year.

Sleeping in a cupboard

The Times examines the increasingly popular phenomenon of hutching, where every room in a house is rented out to save on monthly costs. It speaks to a number of “hutchers”, including a group which believes the risk of violating contractual terms on maximum tenants and getting kicked out is easily worth the savings. One tenant in this particular property sleeps on a mattress in a cupboard.

MPs confirm: Land Registry to stay public

Following a consultation, the government has confirmed that it will not be going ahead with the sale of the Land Registry due to infighting concerning the inefficiency of the Royal Mail sell-off, despite many senior politicians expressing support for its privatisation. The news follows Vince Cable vetoing the scheme last weekend as a result of ongoing arguments with Tory and Lib Dem MPs, and represents a victory for the Public and Commercial Services union, which raised 106,000 signatures in a petition to keep the Land Registry in state hands, away from possible conflicts of interest.

Moving house more stressful than divorce

A new study of 2,000 adults has found that moving house is deemed more stressful than bankruptcy, divorce or the death of a grandparent, and that people find brushes with the property market some of life’s most unpleasant experiences. The research commissioned by EstatesDirect.com, showed that higher levels of anxiety were exhibited when looking to move than when planning for a wedding, becoming a parent or losing a job. Solicitors were found to be perceived as the most stressful people to work with, while over 25% claimed they had previously had a bad experience with an estate agent. "It seems that the stress of uprooting a home has been an unpleasant experience and a source of great strain. The results show just how gruelling the process is regarded and clearly it's viewed among the most stressful events we encounter in modern life,” said a spokesperson for EstatesDirect.

Dementia: New research shows that good design improves independence

New guidelines launched by the Thomas Pocklington Trust and the University of Stirling, reveal how clever design of living spaces can improve the lives of people who are living with two common conditions - dementia and visual impairment. The evidence-based guidelines help make homes more accessible for people with both conditions and were developed after researchers gathered the views and experiences of people living with dementia and sight loss, their families and carers and a wide range of professionals. The guidelines were compiled after an evidence review and wide consultation with people with dementia and visual impairment, carers, relatives, care home staff and managers, and other professionals. They highlight key areas in the home that could be improved with better design. Simple measures such as the use of colour and contrast, clever lighting, the design of cupboard doors and audible and tactile control panels are among those suggested to help improve the lives and independence of people with both dementia and visual impairment. Access Newsletter – June 2014 6 For further information, visit the Housing Net website http://tinyurl.com/lxb5hsw

Homes at risk due to flooding

Millions of people living on flood plains are unaware that their homes are at risk, according to the Government's climate change adviser, which says three-quarters of England's flood defence systems are not being adequately maintained. The committee on climate change (CCC) warns that cuts to the Environment Agency’s budget have weakened the UK’s protection against flooding and are likely to lead to problems in the future. The committee found that Environment Agency staff cuts since 2010 had left it with 40% fewer staff to advise local authorities and developers on planning applications in flood-risk areas. This meant that 12,000 applications for flood-plain developments of nine houses or fewer went unassessed last year.

Science parks threatened

David Harman, the chairman of the UK Science Park Association, has warned that the role of science parks as centres for business innovation is under threat as more sites are bought by large property companies. Mr Harman argues that property companies are preoccupied with "facilitating savings" rather than nurturing innovation. "This active management of innovation communities is also a key differentiator between our members and those running business and trade parks. Real estate is obviously important, but it is far from the sole driver of our success," he says

Investors less likely to invest in an independent Scotland

A survey by Nabarro shows that 81% of Britain’s top property developers and investors would be “less likely” to invest in an independent Scotland. The research shows that Scottish cities were already falling out of favour, with only 10% of the 239 investors polled stating they would invest in Glasgow while 23% would consider Edinburgh. In comparison, 73% of investors polled would invest in Manchester and 42% would invest in Birmingham. More than half also said they believed that while London would remain a magnet for investors its commercial real estate market was “over-valued”. The number of mortgages being approved has dipped to the lowest level since January, according to new figures from the Bank of England. The Bank said that there were 61,707 home-loan approvals for house purchases made in May, down from 62,806 the previous month and lower than a recent peak of 75,901 in January. The dip in May approvals follows the introduction of new lending rules in April under the Mortgage Market Review, which force banks and building societies to undertake tough affordability checks before they grant loans. “We expect mortgage lending volumes to stage a gradual recovery in the second half of this year,” comments Paul Hollingsworth of Capital Economics. TheEvening Standard’sJames Ashton questions whether the market is naturally correcting itself without the need for interference, but calls what the Financial Policy Committee has done so far “reasonable and balanced”. .

Mortgage approvals slide

The number of mortgages being approved has dipped to the lowest level since January, according to new figures from the Bank of England. The Bank said that there were 61,707 home-loan approvals for house purchases made in May, down from 62,806 the previous month and lower than a recent peak of 75,901 in January. The dip in May approvals follows the introduction of new lending rules in April under the Mortgage Market Review, which force banks and building societies to undertake tough affordability checks before they grant loans. “We expect mortgage lending volumes to stage a gradual recovery in the second half of this year,” comments Paul Hollingsworth of Capital Economics. TheEvening Standard’sJames Ashton questions whether the market is naturally correcting itself without the need for interference, but calls what the Financial Policy Committee has done so far “reasonable and balanced”. .

The week ahead

This week Nationwide and Halifax will release data measuring house prices for June, the Bank of England will reveal household borrowing figures and St Mowden Properties, Persimmon and construction management specialist Carillon will post trading updates. St Mowden is expected to report yearly net asset growth of 2.3%, from 9.6% to 11.9%, while sales are forecast to fall to £109m, down from £133m, with pre-tax profit dropping from £34m to £14m.

Bank of England cracks down on mortgages

The Bank of England has taken fresh steps to prevent people from taking on unaffordable mortgages. Under the proposals, lenders will not be allowed to lend any more than 15% of residential mortgages at more than 4.5 times a borrower’s income. In addition, the Bank’s Financial Policy Committee recommends that lenders check mortgage applicants can cope with a 3% rise in interest rates – slightly tougher than the current affordability checks. The new measures are designed to cool the housing market without derailing the economic recovery. Mark Carney, the BoE’s Governor, stressed that controlling debt, and not prices, was the Bank’s biggest concern. He noted that while “history shows that the British people do everything to pay their mortgages,” this had knock-on effects for the rest of the economy. “That means cutting back deeply on expenditures when the unexpected happens, potentially slowing the economy sharply. That's why recessions that follow periods of rapid growth, like the record one from which the UK is emerging, tend to be deeper and longer lasting,” he said. Mr Carney also stated that house prices could rise another 20% over the next three years, without posing a significant risk to the economy, a phenomenon which he would “tolerate”. Meanwhile, the Treasury has announced that it would stop any new loans larger than 4.5 times income from being issued to borrowers under the mortgage element of Help to Buy. Separately, theFT notes a 3% rise in interest rates would add around £3,600 a year to the average person’s mortgage costs

Carney plays down rate rise

The Bank of England is behaving like an “unreliable boyfriend” and is using “smoke and mirrors” to keep changing its message on interest rates, MPs have claimed. Bank Governor Mark Carney appeared to play down speculation of an imminent rate rise yesterday, as he stressed that soaring employment and robust UK growth were not matched by higher wages and rising productivity. MPs on the Treasury Select Committee reminded Mr Carney that less than two weeks ago he said the MPC could vote to raise rates from a record low of 0.5% “sooner than markets currently expect”.

House prices will rise faster if Scotland votes No

House prices will rise more quickly if Scotland remains in the UK than they would if there is a Yes vote, a leaked document from Savills has suggested. A presentation given by the estate agent this month, titled Financing Property 2014, obtained by the Better Together campaign, estimated that Scottish house prices would rise by 25.2% in the years between 2014 and 2018 in the event of a No vote. According to Savills, if Scotland leaves the UK, the house price rise over the same period to 2018 would be only 10.9%.

Construction slowdown expected

A survey by Barbour ABI has found that Britain's construction industry is expected to slow during the summer. The study shows that a rise in contract signings between April and May of 5.3% was not enough to offset a fall over the spring that left the value of contracts down 3.7% on the same time last year. The survey found that residential housing starts accounted for around a third of the entire sector's work amid signs of weak activity in the infrastructure and civil engineering industries. Michael Dall, lead economist at Barbour ABI, said London was the UK's hotspot for construction activity in May, accounting for 24% of the UK total.

MPs critical of Help to Buy

The Government has yet to demonstrate that its Help to Buy mortgage guarantee policy is providing value for money, an influential committee of MPs has found. The House of Commons Public Accounts Committee warned that the scheme has created a "medium and long-term risk" to the taxpayer in the form of a £10bn portfolio of loans which will impose a "heavy administrative burden" for years to come. In a new report, the spending watchdog said the scheme was introduced smoothly and quickly and helped 13,000 homebuyers within nine months. But it noted that Eric Pickles’ Department for Communities and Local Government violated Treasury guidelines by failing to carry out any assessment of alternative options before going ahead with the scheme.

BoE dove expects rates to rise

David Miles, the most doveish member of the Bank of England’s nine policymakers, has revealed that he expects to vote for an increase in interest rates by May next year. His comments underscore remarks made last week by Mark Carney that rates could rise “sooner than markets currently expect”. Mr Miles’s change in tone appears to confirm that the MPC has turned distinctly more hawkish. He also hints, in an interview with the Times, that the minutes of this month’s rate-setting meeting will show that the MPC is moving closer to ending five years of policy at a record low 0.5%.

House price growth slows

According to Rightmove's latest House Price Index, house price growth has slowed across Britain this month and fallen in London. The price of new houses put up for sale in June nudged up just £272 or 0.1% from May, compared to 3.6% the previous month. In the capital, new seller prices recorded a drop of 0.5% in June. Rightmove said buyers were put off by high values but also had more choice, with a 20% rise in the number of houses coming to market in London. Across the country, new seller numbers were up 9.6% compared with last year. The firm’s Miles Shipside said the figures showed that after months of steep rises, the London property market was "starting to run out of steam." However, he added that the legacy of rises in central London continue to ripple out to its better-value commuter-belt, fuelling price increases in all southern regions. Commenting on the figures, Lucian Cook,Savills UK head of residential research, said: "We've reached a point where the gap between London and the rest of the country is becoming irresistible to London home-owners who have for several years put off moving out. The result is more stock on the London market and slightly more realism from sellers."

Osborne to incentivise brownfield construction

George Osborne will announce new incentives for developers to build new homes on derelict urban sites in an effort to spare the green belt. Figures show there is enough brownfield land for 2.5m homes, but developers are often reluctant to build on it due to having to decontaminate soil on former industrial sites. "It looks like a welcome recognition that more needs to be done to use sites in towns and cities that are derelict and not force development sprawling into the countryside,” said Shaun Spiers of the Campaign to Protect Rural England.

Construction activity eases

UK construction activity eased back in May, however, a strong performance from the house building sector helped the index remain at elevated levels. The Markit/CIPS construction purchasing managers' survey fell to 60 in May, its lowest level since October last year. Tim Moore, senior economist at Markit, said overall the construction sector was enjoying its "strongest overall phase of expansion since the summer of 2007."

Landlords could face jail if they let to criminals

In a crackdown on organised crime it will be announced in the Queen's Speech that landlords who knowingly lease premises to criminal gangs will face up to five years' imprisonment under new laws.The owners of residential properties could be prosecuted for "participation in an organised crime group" if they fail to report suspicions that premises are being used for crime. The offence will also apply to commercial landlords and others who provide services such as transport or parcel delivery.However, the new measures will be primarily aimed at corrupt lawyers and other professionals who "turn a blind eye" when working for organised crime gangs. Karen Bradley, the organised crime minister, said: "This new offence sends out a clear message to those individuals – if you are helping to oil the wheels of organised crime, you will be prosecuted and face being jailed."

Small developers to be exempt from carbon rules

Small housing developers will be exempted from new environmental controls to encourage the building of thousands of homes, under legislation to be announced in the Queen's Speech. Measures introduced last year to ensure that every new home in Britain would have to be built to a "zero carbon" standard by 2016 will be watered down so they do not apply to "small sites", which house builders say are developments with fewer than 50 homes. The legislation is also expected to exempt larger developers from having to meet the highest level of energy efficiency. Instead they will be allowed to design homes to a lower standard and offset the extra carbon that the homes produce by paying into a government fund for energy efficient projects.

UK races ahead as confidence returns

According to the CBI, the economy is growing at its fastest pace in more than a decade amid rising consumer and business confidence. It said the retail, manufacturing and service sectors registered record growth in May in a sign that the recovery is broadening. Katja Hall, CBI deputy director general, said the strong performance of the UK economy was down to rising confidence, as well as "better credit conditions at home and 'abroad'". However, she said sluggish eurozone growth and rising tensions in Ukraine still posed risks. The CBI's survey of 726 businesses showed 35% of respondents believed activity had increased in the three months to May, up from 25% in April. This was the highest reading since records began in 2003. Meanwhile, the BCC has upgraded its UK growth forecast to 3.1% for 2014, from 2.8%. It now expects the BoE to start raising rates in the first quarter of next year, two quarters earlier than previously forecast.

Lord Sugar sues lawyers over property deal

Lord Alan Sugar is suing his solicitors, Kinglsey Napley, claiming that they botched a property deal. Amsprop has filed a claim for £1.3m at the High Court, alleging that Lord Sugar was forced to pay out nearly £1m to luxury jeweller Longmire after his lawyers mishandled efforts to take possession of the Bond Street property as part of a planned redevelopment project.

Money laundering funding Right to Buy applications

The Daily Star says that hundreds of benefits claimants are able to buy council houses at reduced prices as a result of using the government's Right to Buy Scheme, but officials fear many are raising cash by laundering money. Fraud officer Andrew Hyatt, who works for the Royal Borough of Kensington and Chelsea, says 33 of 39 Right to Buy applications in his borough collapsed after an official probe. "In terms of money laundering, it is imperative that we know where the finances are coming from to purchase the property to ensure it is not from illegal sources", he stated.

Lenders set to copy Lloyds

Experts have predicted that mortgage lenders will soon follow Lloyds Banking Group and introduce tighter borrowing requirements. On Tuesday, Lloyds decided to cap mortgages over £500,000 at four times income in order to cool the housing market in London. The bank said the policy would apply across the whole of the UK, but was targeted at the capital. Other lenders have said they are keeping vigilant as regulators fret over the booming housing market. A spokesman for Santander said: “We constantly review affordability and adjust our criteria based on a number of factors - one of which is the macro housing market.” A Barclays spokesman expressed a similar theme.

BoE on top of house prices

Anne Ashworth comments that Mark Carney’s announcement that he is not putting up interest rates shows that he is more observant about the market than some of his critics who have called for an interest rate rise. She says that the Mortgage Market Review is already in place to prevent borrowers over stretching themselves, and that the property price revival has not yet spread nationwide. She also comments on news from Savills that interest in prime London is cooling down. However, she notes that there is still a huge interest in the UK's real estate star attraction.

Unemployment falls to five-year low

The ONS has revealed that the number of people out of work in the UK fell by 133,000 to 2.2m, or 6.8% of the population, in the three months to March. Average earnings grew 1.7% year-on-year, meaning that with inflation at 1.6% in March as measured by CPI, wages outpaced inflation for the first time since 2010. The growth rate in wages - which includes bonuses - was unchanged from the previous month. The ONS said the number of self-employed people in the UK has risen by 375,000 since March 2013 to nearly 4.6m, outstripping the 351,000-strong increase in full- and part-time employees in the private and public sectors. Employment minister Esther McVey said: “As the recovery takes hold, more people are able to get a job or set up their own business and become the employers of tomorrow.” The Daily Telegraph, Business, Page: 1, 4 The Sun, Page: 12

Eurozone deflation a danger to UK

A group of economists has warned that a sustained period of deflation in the Eurozone could derail Britain's recovery. Almost half of the economists surveyed by the Centre for Macroeconomics, in a joint study between the BoE and the NIESR, said that there was a significant risk of a sustained period of deflation across the Eurozone in the next two years. Nearly two thirds of respondents to the survey think that it would pose a "significant threat" to the UK economy, which is expected to grow by about 3% this year.

More incentives needed to encourage brownfield developments

A new report from Civitas suggests that the UK has enough brownfield space to build 2.5m houses. Report author Peter Haslehurst, chairman of manufacturing group Luxfer Holdings, argues there are not enough incentives for developers to build on brownfield sites where costs are higher. He writes: "If the costs of clearing up brownfield sites were genuinely met by central government, then developers would be eager to make profits on them. Not only would the subsequent corporation tax flow to the Treasury, but many brownfield eyesores in towns and cities would disappear; the pressure for new roads, schools, public transport, shops, hospitals and other infrastructure to support new housing in greenfield areas would be eased; much of our countryside would be preserved; and, crucially, we would be investing in the future of our town and city centres and their communities." The Civitas report says that while there is tax relief available to meet the cost of clearing up brownfield land, the rules and regulations make it "almost impossible to obtain". The Daily Telegraph, Page: 8 Yorkshire Post, Page: 4

Government told its time to exit Help to Buy

Economists who had previously supported Help to Buy subsidies have now warned George Osborne that the scheme is undermining affordability by pushing up house prices, reports the FT. Kate Barker, a former MPC member who sits on the board of Taylor Wimpey says she has changed her views on the scheme having previously thought it was a helpful intervention, but now believes the Government should start looking at when it should exit the scheme. Michael Saunders, from Citi, said the scheme's job was done. "With the economy growing strongly and unemployment falling rapidly, we believe that such stimulus is no longer needed," he said. Meanwhile, Danny Gabay of Fathom Consulting, says the policy gave implicit government support to high and rising house prices and encouraging a "buy now before it's too late attitude" that has pushed prices nationwide far above sustainable levels. The FT goes on to consider what the Government's Help to Buy exit options are. Separately, the paper looks at how Australia and Canada have dealt with their mortgage guarantee schemes. Australia privatised the operation entirely, while Canada set up a specific government body to deal with it, while allowing some private operators in. Financial Times, Page: 4 Financial Times, Page: 4

Bank of England poised to step in?

HSBC believes that the Bank of England is poised to intervene in the housing market in order to prevent the collapse of a growing housing bubble. Finance director Iain Mackay, said: "What we are all waiting for or perhaps wondering about is, as London or the south-east continues to move ahead, will the financial policy committee or the Bank of England reflect on how they wish to put some controls on lending into that sector?” HSBC has increased its share of the UK mortgage market since the financial crisis, but the bank also stressed that its loans were low risk and that the average loan to value of its mortgages was 47.3%. Meanwhile, the Telegraph’s James Kirkup says that the current state of the housing market could actually be attributed to the BoE keeping rates so low for so long. “That generosity cannot continue. Sooner or later, rates are going up”, he comments.

Miliband would raise tax on “ghost homes”

Ed Miliband has said that owners of empty "ghost" homes, who buy them as an investment and help to drive up house prices, would be hit by bigger tax penalties under a Labour Government. In an interview with the Evening Standard, Mr Miliband said he would target London's 60,000 "ghost homes" by letting councils charge double their council tax on properties left empty for more than a year. Since April last year councils have had the power to impose a 50% surcharge on properties that have been unoccupied for two years, but Labour says that while half of all 15 of London's Labour-run boroughs have introduced the empty homes premium, Conservative and Lib Dem-run councils in London had failed to use the powers at all. Mr Miliband has also pledged to kickstart house building in the UK and says that Labour would construct 300,000 new homes in the next parliament. "When I think about the prospect of becoming prime minister next year, housing is one of the absolute top priorities because it is a crisis," he stated.

Land Registry could be privatised

Leaked minutes from a meeting of Land Registry board members suggest that the body could be heading towards privatisation. The Guardian says the documents in question indicate senior civil servants are deciding between a joint venture between the government and a private company, or letting a private company run it as a “GovCo.” It is thought the government could raise £1.225bn from a deal with a joint venture company, or £1.1bn from a GovCo agreement. Former Land Registry executives and unions have both criticised the proposal. John Manthorpe, the former chief land registrar, said: “It is clear that the management board, which has negligible experience and understanding of land registration and its important role, are solely fixed on the privatisation of this important state asset without any regard to the practical, financial or legal consequences for the citizen and business." Michael Fallon MP has said that options would be put out for public consultation before any decision is made, but Land Registry staff are expected to announce a two-day strike in response to the potential privatisation. The Guardian, Page: 2, 22

Growth expectations hit record high

The CBI has claimed the economic outlook for the next three months is “exceptionally strong”. A survey of 675 firms has revealed that growth expectations for the period are at their highest since 2003, when the employers’ organisation began collecting data. While manufacturers reported good progress, it was businesses in the retail and services industries which showcased the strongest output growth. “These latest growth figures, and the strong expectations for the next quarter, provide further encouraging signs of increasing vigour and confidence across the UK economy,” remarked Katja Hall, the CBI’s chief policy director.

Banks scale back property lending

The FT quotes research that suggests banks are reducing the amount they are lending to property companies, despite growing confidence in the market developing over recent months. Banks’ reluctance to lend has seen alternative investors step into fill the gap, including insurance firms, pension funds and private equity groups. According to research by EMW, net outstanding loans made by UK banks to property investment companies and developers have fallen 13% year on year, and now stand at £175bn – around a half of the figure of four years ago, which topped £247bn. Furthermore, figures published by CBRE indicate that commercial property rents have risen an average of 3% over the past year, and the average prime yield dropped 10 basis points in the first quarter of 2014 to 5.9%. Aleksandra Starczynska, an analyst at CBRE, said: “The improving economic picture in the UK is being directly reflected in the performance of the commercial real estate.”

Stamp duty helps government meet target

Government borrowing fell to below £107.7bn in the financial year to April 2014, according to new figures from the Office for National Statistics – lower than the £115.1bn borrowed the previous year. The government met its borrowing target thanks in part to an increase in stamp duty from property sales. Revenues rose by 44.5% to reach £1.1bn in March, with receipts for 2013-14 totalling £12.6bn. John Hawksworth, chief economist of PwC, said the improvement “reflected particularly strong growth in stamp duty as the housing market revived, up 37% on the previous year. There was also solid growth in VAT, income tax receipts and national insurance contributions as the UK economy recovered.” Meanwhile, the Bank of England’s Monetary Policy Committee (MPC) has raised its UK economic growth forecast for the first quarter of the year from 0.9% to 1%. Minutes from the MPC’s latest meeting reveal that growth in the second quarter is “expected to be only a little weaker”. The Committee also voted unanimously to keep interest rates on hold at 0.5%.

Business lending slows, property lending rises

Bank of England data shows that lending to companies of all sizes fell by £0.5bn in the three months to February, a drop of 2.1% compared with a year earlier. The number of mortgage approvals over the same period continued to increase however, raising fresh fears of a housing bubble and concerns over the state of the economic recovery. However, the banking trade association BBA said although net lending was down, a high proportion of loans were being approved. ScotiaBank reported: "lending to the real estate sector has sharpened in recent months as borrower repayments have started to increase, aided by improvements in the performance of the market."

Britain tops survey of most attractive places to invest

According to a survey by EY, a flood of property investment in Britain this year will push up prices even further as investors seek a safe haven for their cash. The consultancy firm, has described the UK as "leagues above" the rest of Europe in terms of the quality of residential and commercial property investment. Its survey of property company CEO’s showed that 69% believed Britain would see the highest deal volumes this year, with Spain a distant second with 16% and Germany judged to be the third most attractive place to invest. Dean Hodcroft, head of EY's UK and Ireland real estate division, described London as a "magnet for world talent", benefiting from geographical advantages, political stability and market transparency, placing it above other global cities such as New York

Letting agent regulation on the cards

Kris Hopkins, the housing minister, has confirmed that the Government will oblige letting agents and property management companies to join one of three approved compensation schemes. The schemes will have the power to investigate complaints about hidden fees or poor advice. The move comes after the Property Ombudsman received record levels of complaints made against them by tenants and buy-to-let landlords. Mr Hopkins said: "All tenants and leaseholders have a right to fair and transparent treatment from their letting agents. Most are happy with the service they receive, but a small minority of agents are ripping people off, and giving the whole industry a bad name."

Construction output shrinks

Output in the construction industry fell sharply in February as extreme weather halted work on building sites, official figures have shown. Output fell by 2.8% to £270m compared with a month earlier, the ONS said. But in the three months to the end of February, construction output grew 0.3% compared with the previous quarter. Despite signs of improvement, the construction industry remains 13.2% below its pre-recession peak. The ONS said the heavy rain and flooding that marked the wettest winter on record had caused delays in building work. It added that repairs of flood damage had not yet filtered through to its data.

'Woefully inadequate' facilities for disabled must improve - minister

Football clubs across Britain must urgently redress the "woeful" lack of facilities for disabled fans at many stadiums, says a government minister.

Mike Penning, the disabilities minister, has written to every professional club in the country to highlight their legal obligations. "I'm blowing the whistle on discrimination against disabled people by football bosses," said Penning. The Premier League says its clubs aim to provide good disabled facilities. "All Premier League clubs have arrangements in place to provide access and facilities for disabled fans," read a statement. "The highest standards of access are generally at clubs with new grounds, but all clubs, even those working within the constraints of older stadia, work hard to make sure that disabled fans can attend matches and enjoy their football." Penning has confirmed he wants to meet Football Association chairman Greg Dyke about the issue. Only last month, a BBC report revealed that only three Premier League stadiums provide the required number of wheelchair spaces.

Joyce Cook, chair of Level Playing Field,  formerly known as the National Association of Disabled Supporters, added: "The experience of disabled football fans varies across the country. That's not acceptable and it's time all football clubs took their legal obligations seriously."

Asbestos and Air conditioning presentation

Following our seminar on Asbestos and Air conditioning at the National Star College today, for those that missed it or would like a copy of the topics covered. Please refer to our website where you can download the presentation notes.

http://www.nickbevan.co.uk/Company/Events.aspx

PLANNING

Perverse planning decisions The Commons Communities and Local Government Committee has warned that the Coalition’s planning reforms have led to perverse behaviour by local authorities trying to meet set targets. The MPs decided to hold an investigation into the planning regulations, which introduced a “presumption of sustainable development” to force through more house building, after research by academics at Cambridge University warned that there could be issues with the way it is being enforced. The research warned that “some local planning authorities engage in poor practice in order to meet planning targets”. Dr Gemma Burgess, the author of the report, said some councils were refusing applications simply to make a decision within the statutory period.

Saving newts – at a price!

Gallagher Estates has revealed that it has spent more than £1m on catching newts – because they are a protected species. Around 150 great crested newts have had to be relocated from land in Milton Keynes set aside for new homes. Each newt has cost the developer an average of £6,700.

Nick Bevan become the first Commercial Agency in Cheltenham to advertise on Rightmove.

In order to provide maximum exposure when marketing our client’s property we now appear on the 6th most viewed webpage in the UK.

Oliver Workman from Nick Bevan’s Commercial Agency Department Said ‘Nick Bevan are always open to new and innovative methods of marketing to ensure our clients receive the best service. The initial feedback has been positive with a freehold sale achieved as a direct result of using the online property portal.’

http://www.rightmove.co.uk/estate-agents/agent/Nick-Bevan-Consulting-Limited/Cheltenham-108916.html

Running out of bricks

The making of bricks in Britain has fallen to the point where the country has the equivalent of only about two months' of supply in stock, an industry leader has warned. The head of Michelmersh Brick Holdings said that a "difficult five years" meant that brick stock levels had fallen from 1.1bn bricks to 332m. Martin Warner, chief executive of the AIM-listed company, said that a lot of capacity had been taken out of the industry during the recession and now it was trying to cope with rapidly rising demand from housebuilders.

Osborne faces call to overhaul stamp duty

The Chancellor is facing calls to overhaul stamp duty amid claims that revenues will rise to £15bn and a warning that it is "punishing aspirational Britain". The Taxpayers’ Alliance figures claim that receipts will rise in real terms from £9bn this year to £15bn in five years' time, an increase of 73%. A 3% rate on properties worth £250,000 or more was introduced in 2000. According to Savills, if stamp duty had kept pace with house-price inflation, it would now stand at £500,000. Conservative MP Henry Smith said that he wanted to see thresholds increase “significantly” to help families trying to buy a house. He said: "Many average home buyers are now finding themselves subject to quite significant stamp duty rates." Meanwhile, the EY ITEM club says in its pre-Budget briefing today that there is a strong argument for indexing the thresholds to rise in line with inflation or house prices. The Times, Page: 2

Buyer numbers levelling off

The growth in the number of would-be buyers in the housing market started to slow down last month as recent surges in interest began to level off, according to a report from the Royal Institution of Chartered Surveyors (RICS). But it warned the slowdown might be temporary, due to the impact of flooding on parts of the country in January and February, and that further price rises could be expected. The Guardian, Page: 28 The Herald, Page: 9

Interest rates to rise

Interest rates will rise six-fold by 2017 as Britain's economy becomes one of the fastest growing in the developed world, Mark Carney the Governor of the Bank of England said yesterday. The increase to more "normal" levels is likely to put many borrowers into financial difficulty. Brokers are expecting a rush of borrowers wanting to fix their mortgages. Separately, Mr Carney admitted he has no direct control over soaring house prices in prime central London. He told MPs that the Bank did not have the “tools” to dampen the market in the capital’s affluent central boroughs, which was driven by cash buyers, many of them from abroad. The Daily Telegraph, Page: 1 Evening Standard, Page: 2, 4

Business rates reform needed

MPs on the BIS Business Select Committee have called on the Government to make radical reforms to the business rates system in order to help retailers and local economies. The MPs argue in a report that the tax is no longer fit for purpose and that there should be an examination of whether retail taxes should instead be based on the value of sales. The report also suggests a separate system of business taxation for the retail sector. Adrian Bailey, the committee’s chairman, said: “Since the system was created, the retail environment has changed beyond all recognition. A system of business taxation based on physical property is simply no longer appropriate in an increasingly online retail world.” The British Retail Consortium and Bill Grimsey both welcomed the report. The BRC’s director-general Helen Dickinson commented: “This report must be the final nail in the coffin of the question: Do business rates need to be reformed? They do. Business thinks so. A committee of Parliament thinks so. We very much hope the government will think so too.” Mr Grimsey added: “How many more reports like this do we need before ministers finally wake up to the problems they’re storing up by continuing with a system that’s simply not fit for purpose?” Financial Times, Page: 2

Landlords win legal battle over Game

Game, the computer game retailer, will have to pay £3m to a collection of Britain’s landlords after it lost a landmark legal case about unpaid rent. The ruling by the Court of Appeal closes a legal loophole that meant companies could avoid paying rent for three months if administrators were appointed shortly after the quarterly rent day. The case came to court after a consortium of property companies including Hammerson, British Land and Land Securities claimed they missed out on millions of pounds in rent when Game called in administrators in March 2012. Hammerson said the judgement “provides a workable, common sense resolution” for future administrations. Duncan Grubb, head of credit control at Hammerson, said: “Corporate restructuring will now be focused purely on trading patterns and the viability of the ongoing business, rather than on rent free periods from landlords provided by a legal loophole.” The Daily Telegraph, Business, Page: 4 Financial Times, Page: 18 The Times, Page: 41 The Independent, Page: 54 Independent I, Page: 43 Yorkshire Post, Page: 3

Office costs not discussed in the boardroom

UK firms spend more than £28bn on offices every year, including rent, rates and furniture, according to a new report from the British Council for Offices. Despite the high level of spending revealed in a survey of 250 senior executives, more than half said property issues were not regularly discussed in boardrooms. The Press and Journal, Page: 40

Construction sector likely to be hit by bad weather

Activity in Britain’s construction sector is likely to have been affected by the worst flooding in 60 years, a member of the Bank of England’s rate-setting Monetary Policy Committee has warned.Ian McCafferty said that while the construction sector had staged a revival recently after being devastated in the global downturn, it might be a “less positive” contributor to growth in the first three months of this year. He said there may be a short-term impact on some aspects of construction, adding that he was not yet sure if it would change the overall growth rate for the first quarter.

Landlords take Game to court

Landlords, including Intu Properties and British Land, have started a legal battle with Game over unpaid rent at the Court of Appeal with experts warning that the test case could lead to many fresh claims. Landlords are seeking missed rental payments for the first three months after the video games seller called in administrators in March 2012. The landlords argue that insolvency laws — which allow the appointment of administrators a day after the “quarter rent” is due — mean that retailers benefit from a period of rent-free trading at the landlords’ expense. A week later OpCapita led a deal to buy it and acquired about half its stores. It began paying rent on these stores in June 2012. It is understood the amount of unpaid rent in question is about £3m

Leaseholders at risk of unaffordable flood insurance

According to the property industry thousands of leasehold properties face being left without affordable insurance due to the fact that they will be excluded from a new national flood subsidy scheme. The British Property Federation and the Leasehold Knowledge Partnership estimate that 70,000 leasehold properties are at high risk of flooding. The Federation's director of policy, Ian Fletcher, accused the insurance industry of making "misleading" claims about leasehold properties' inclusion in the Flood Re scheme. Meanwhile, the Telegraph reports that wealthy homeowners have been warned that they will not be covered by the new flood insurance scheme for high-risk properties even though they will have to pay a levy for it. Under the proposals, which are due to come into force in 2015, properties in council tax Band H will not be eligible for the cheaper cover because they are deemed able to pay for insurance themselves. Financial Times (Web) The Guardian, Page: 7 The Daily Telegraph, Page: 2

Rental predictions

Knight Frank has been tracking the rental market across London, Bristol, Birmingham, Leeds, Manchester and Glasgow and estimates the 2018 figure will be 5.3m. "The rental revolution is here," said Gráinne Gilmore, head of UK Residential Research. "The private rented sector is set to continue growing in the years to come, boosted not only by the difficulties many face in climbing onto the housing ladder, but also the need for flexible tenure among workers increasingly concentrated in key cities around the UK. Investors keen to tap into the market are starting to move their attention beyond London to the regions where, as our index shows, yields are higher," she adds. The Independent, Page: 46

Reduction in CGT relief to raise £360m

Landlords who let their former homes could have to pay thousands of pounds more in tax when they sell these properties after April 5, following a reduction in CGT relief. The reduction, announced in George Osborne's most recent Autumn Statement, is forecast to raise an extra £360m in tax for the public coffers over the next five years. Tim Norkett of Crowe Clark Whitehill, commented: "It's very significant. There are big profits to be taxed." Separately, the Conservative Party in Wales has promised to scrap stamp duty of houses worth less than £250,000 if it wins power in the Welsh Assembly. The move would save buyers up to £2,500.

Evening Standard, Homes & Property, Page: 6   The Times, Page: 4

Construction index hits post-crunch peak

The Markit/CIPS Construction Purchasing Managers’ Index moved up 64.6 in January from 623.1 in December, marking well above average growth in the sector and the highest it has moved since August 2007. The data was roughly consistent with housebuilding growing by about 4,000 a month, or at an annualised rate of 48,000. David Noble, CEO at the CIPS, said “The construction industry has started 2014 in formidable fashion, enjoying its strongest growth in six-and-a-half years reinforced by a sharp rise in new business orders”.

The Daily Telegraph, Business, Page: 3    Financial Times   The Times, Page: 36   Daily Mail, Page: 65     The Guardian, Page: 24

Special court for planning disputes

Chris Grayling, the Justice Secretary, has announced that disputes over big construction projects, from shopping centres to schools, will be fast-tracked through a new planning court under plans to curb costly legal challenges. An estimated 400 planning cases will go before specialist judges working to fixed time limits as part of a move by ministers to stop "meritless" challenges that clog up courts and delay or scupper building schemes. The Times, Page: 1 The Daily Telegraph, Page: 2

House building at highest level since 2007

The National House Building Council (NHBC) has reported that 133,670 homes were built in 2013, the highest amount since 2007 and a 28% increase on the number built in 2012. The NHBC said the recovery was becoming increasingly "broad-based" rather than being concentrated only in London. The figures show that every region in the UK, apart from Wales, saw a year-on-year increase in the number of homes being registered with the NHBC. In England, the number of new-build registrations was up by 30% on 2012, reaching 117,969. In London, 26,230 homes were registered, a 60% rise and the highest since records began more than 26 years ago.

The Daily Telegraph, Page: 1   The Daily Telegraph, Business, Page: 3   The Times, Page: 39   Daily Mail, Page: 74, 75

INDUSTRY - Construction becoming more confident

Glenigan, the construction analyst, has revealed that the value of British projects put on hold during 2013 was the lowest since the start of the recession in 2008. It said £12bn of potential projects were put on hold last year, compared to £47bn in 2012 and a peak of £80bn in 2009. Tom Crane, an economist at Glenigan, said the figures were the latest indicator of rising confidence in the industry. The Times, Page: 40

Housing - Ten buyers for every property

According to Countrywide, there are nearly ten potential buyers for every property on the market, with the number chasing every home continuing to rise. There was an average of 9.7 buyers for every property coming on to the market in November 2013, compared to 8.5 in November 2012, 7.1 in November 2010 and 6.5 in November 2008, Countrywide said. The lettings market has also remained strong, with an average of 10.4 prospective tenants per property. The group, which predicted 5% growth in house prices this year due to a ripple effect outwards from central London, also reported that first time buyers are becoming an increasingly concentrated group, in terms of age. Chief executive Grenville Turner said: ''We expect the proportion of buyers aged between 25 and 44 to grow to encompass 87% of all first time buyers by 2023, up from 67% in 2003. The Telegraph also reports that the study suggests that the UK could face a shortfall of a million new homes by 2021 as developers continue to play catch up after the financial crisis. Countrywide found that new build developments in London and the South East are only at 68% of 2005 peak levels, while new starts in the East Midlands are at 36% of volumes built in 2005. The Daily Telegraph, Page: 1, 2 Daily Express, Page: 21 Yorkshire Post, Page: 4 The Herald, Page: 10

Supply issues hampering construction

A shortage of construction workers and building materials could slow the building of new homes and push up labour costs amid rising demand for property in the UK, according to theConstruction Market Survey, produced by the Royal Institute of Chartered Surveyors (RICS). The report found that 36% of respondents claim that labour shortages are already hampering building with bricklayers especially hard to find. However, despite these concerns, RICS said that 74% more chartered surveyors in the study expected activity to increase rather than decrease during 2014. Meanwhile, Grahame Barn, director of the Federation of Master Builders, Scotland, has called for a drive in training and apprenticeships to combat the skills shortage in the construction sector. Separately, results from Hays show net fees from jobs in construction and property in the UK rose 21% while the firm recruited more architects in the past six months than it did in the past four years.

The Daily Telegraph

Floods and Taxes

William Boss, joint head of UK real estate at King & Wood Mallesons SJ Berwin, examines how to assess flood risks to property and looks at revised tax rules on residential property. Mr Boss suggests using the Environment Agency’s flood maps to help assess flood risk, which now include the risk of surface water flooding, but warns that underlying data won’t take into account any specific features of a particular property. Mr Boss goes on to explain issues surrounding CGT on residential property for UK residents, non-UK residents and when owned through a corporate vehicle. Separately, the Times reports that the Halifax received a 300% increase in flood-related calls last month, with the average flood claim totalling £13,855. The article goes on to offer tips on how people can protect their home, car and finances.