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.”