Britain on the cusp of escape velocity

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

Construction sector turning a corner?

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

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

New review of Portas Pilots says convert retail units into homes

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

Has the housing market really reached a 14 year high?

RICS reports housing market optimism at 14 year high

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

Landlords overlooking costs

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

The Sunday Telegraph, Money, Page: 4