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