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.