Cash sales made up 34.4% of total home sales in the United States in May 2014, the lowest share since May 2010, the latest data shows.

The figures from real estate company Core Logic, also show that the number of cash sales are down from 37.4% from the same month a year ago.

However, the firm pointed out that while the cash sales share also fell from the 36.9% reported in April 2014, cash sales share comparisons should be made on a year on year basis due to the seasonal nature of the housing market.

The share has fallen on a year on year basis each month since January 2013. Prior to the housing crisis, the cash sales share of total home sales averaged approximately 25% and the peak occurred in January 2011 when cash transactions made up 46.2% of total home sales.

Real estate owned (REO) sales had the largest cash sales share in May at 55.5%, followed by re-sales at 34%, short sales at 32.8% and newly constructed homes at 16.8%.

While the percentage of REO sales that were cash transactions remained high, REO transactions made up only 8.2% of total sales in May and therefore did not have a large influence on the overall cash sales share. In January 2011, when the cash sales share was at its peak, REO sales made up 24% of total sales.

Florida had the largest share of any state at 53.4%, followed by New York at 50.3%, Alabama at 48.9%, West Virginia at 48.3% and South Dakota at 46.3%.

Of the nation’s largest 100 Core Based Statistical Areas (CBSAs) measured by population, Nassau County-Suffolk County, New York, had the highest share of cash sales at 66.4% followed by Cape Coral-Fort Myers, Florida, at 64%, West Palm Beach-Boca Raton-Delray Beach, Florida, at 62.8%, North Port-Sarasota-Bradenton, Florida, at 62.7% and Detroit-Livonia-Dearborn, Michigan, at 61.1%.

With a consensus that the first Bank of England base rate interest rise since July 2007 is drawing ever closer on the horizon, it seems that around half of UK home owners are unconcerned about it.

Mortgage holders interviewed by Ipsos MORI on behalf of the Halifax building society found that while 41% say they are concerned there are wide regional variations.

Some 61% of home owners in the North East are not concerned, along with 60% in Wales and 58% in Scotland. But 53% of home owners in the South East are concerned, followed by 49% in the South West.
The research also found that 30% of mortgage holders in the North West would find it difficult to afford monthly repayments if the amount increased by up to £50, followed by 20% in Scotland and 21% in the North of England.

In the West Midlands 45% of home owners would find it difficult to afford repayments if they increased by up to £100 while 60% would find it difficult to afford payments if they increased by up to £150. While in the South West 46% would struggle if their monthly mortgage payment was £100 higher.

Other groups who are more likely than others to say they are concerned about interest rate rises impacting their mortgage payments are women at 45% along with 50% of those aged 35 to 44 and 48% of families with children. While 57% of those with variable rate mortgages compared to 43% of those with a fixed rate mortgage would be concerned.

Nationally 13% are concerned that they would find it difficult to afford their monthly mortgage repayments if the amount was up to £50 higher. A third, 33%, say they would struggle if the amount was up to £100 higher, and this figure rises to 42% for those on variable rate mortgages.

If their mortgage payment was £100 higher, a third of mortgage holders felt that they would have to reduce spending on everyday essential items such as food, energy, clothing and insurance. This rises to 39% for Londoners and those living in Wales.

‘Speculation of a potential rate rise has been high up on the news agenda for some time now so it is perhaps surprising that the majority of home owners are not concerned about this,’ said Craig McKinlay, mortgages director at the Halifax.

‘However, with base rate historically low, and the Bank of England reinforcing its position that there will not be a rush of successive rate rises, it is understandable as to why the perceived impact of future rises is being dampened and homeowner sentiment is reflecting this,’ he explained.

‘With the base rate remaining at 0.5% for over five years, a significant number of homeowners have not yet experienced the effects of a rate rise. While responsible mortgage lenders take in account potential rate increases as part of the affordability checks in the mortgage application process, the way in which people manage their remaining disposable income will…

New rules for UK regarding the immigration status of new tenants are set to place an unfair burden on landlords and lettings agents, it is claimed.

Landlord Assist said it is concerned that landlords and letting agents will soon be responsible for policing the immigration status of their tenants when the new rules which form part of the Immigration Bill and are due to become mandatory in 2015.

It means that that landlords must carry out certain checks on new tenancy agreements before allowing the tenant to move in. Failure to do so could result in landlords facing a fine of up to £3,000.

‘We are concerned that the new legislation will place unfair burden on landlords. Landlords or letting agents will not be familiar with Home Office documentation, passports for countries outside the EU and therefore could easily be presented with fake or falsified documents which they would be unable to differentiate from the originals,’ said Graham Kinnear, managing director at Landlord Assist.

The government says it will carry out a pilot scheme in one location in the UK in two months' time to check a tenant's right to be in the country. The location is yet to be announced.

It is widely reported that up to 85% of illegal immigrants end up living in privately rented accommodation and the legislation is being introduced to stop rogue landlords letting substandard property to low paid immigrants.

Stephen Parry, Commercial Director at Landlord Assist is concerned about the additional red tape for landlords and their letting agents. ‘Without proper education and training it is not viable to expect landlords and letting agents to be able to robustly police the government’s immigration strategy,’ he said.

‘Agents already undertake identity checks on prospective tenants but to be able to decipher Home Office documentation or visa documents is probably a bridge too far. We accept that agents should make efforts in this respect but feel it is unfair that they can have such a significant financial penalty hanging over them in the event that something gets passed them,’ he explained.

‘It seems logical that if the government wish landlords and their agents to carry out a specific function that they should provide appropriate guidance notes on how to do so,’ he added.

Landlord Assist is also worried that landlords who let their property themselves without the assistance of a letting agent may be targeted by illegal immigrants. A recent report stated that more than a third of these landlords make no checks whatsoever on their prospective tenants.

‘Landlords who don’t use a letting agent to rent out their properties should be mindful that they may be targeted by individuals who do not have the necessary documentation. We urge landlords to be vigilant with this matter and keep a close eye on their responsibilities,’ said Kinnear.

Must haves in the property world change all the time with the current list now including party barns, dressing rooms and plunge pools.

Studies are still popular but open plan living is a bit past it, according to the latest list compiled by property search firm Stacks.

‘Anything from a dilapidated outbuilding with dirt floors, to a properly renovated barn with underfloor heating and full sound system counts as a party barn and every home should have one,’ said Rachel Johnston from Stacks Property Search.

Next is a bar in the garden. This can be a cabana, a summer house or even a small covered space that can be dressed up.

Nowadays everyone seems to have too many clothes for a wardrobe so dressing rooms are on the must have list. ‘The best dressed houses all have a customised dressing room, sometimes sacrificing a bedroom for the purpose,’ explained Johnston.

And a swimming pool is no longer essential for the discerning home seller. Plunge pools are today's alternative to a swimming pool. They should have just enough space to plunge in and cool off, but take up less space, and require little maintenance compared to the full sized thing.

Completely open plan living is a bit passé, but blended areas that interconnect kitchen/living/dining/sitting/playing and watching, whilst still providing some privacy is on the desired list.

It used to be called a box room, but if it's big enough for a lap top and some files, it's a study and can add to the value and desirability of a property.

They used to be called fields, but now they're called paddocks and conjure up images of ponies and chickens, rather than a man with a tractor.

Things that have fallen off the desirable list include Jacuzzis which are apparently widely believed to be a health hazard along with egg shaped baths as the more classical look is in vogue.

Grey will be all over by 2016 and polished concrete has already gone out of fashion as have signature walls with oversized flowery wallpaper on one wall of a room.

If you must have a swimming pool then the advice it to go for an indoor pool, especially one that can open up to the gardens, with direct access from the house.

Subterranean floors without any natural light are out as are bifold doors as they're no longer aspirational, and can be found in every mass development. Quality is incredibly variable, and they're not really very practical.

Innovaré Systems, a manufacturer of structural insulated panels (SIPs), is reorganising its factory in Coventry to double production capacity.

Innovaré, a subsidiary of construction group Osborne, is restructuring material flow on the production line during a factory shut-down this week. The company says that simply by introducing these efficiency improvements it is able to double output of its SIPs.

Head of operations Simon Fletcher said: "We are always looking for ways to improve our efficiency and maximise our capacity, so that we can provide the best value and speed of build for our customers and achieve our promise of Complete Delivery. This will also allow us to take on larger and more ambitious projects. We can be even more flexible on the other ‘added value’ elements that we can offer bespoke to our customers.”

Gross mortgage lending in the UK reached £19.1 billion in July, some 7% higher than the previous month, according to the latest figures from the Council of Mortgage Lenders.

The amount is also 15% higher than July last year when it was £16.7 billion and the highest monthly figure since August 2008 when it was £19.3 billion.

‘Mortgage activity seems to have remained robust following the regulatory changes but the eventual impact of these remains uncertain,’ said CML market and data analyst Caroline Offord.

‘Property transactions in the first half of the year showed a 25% increase compared to the same period a year ago but, as set out in our recent market forecast update, we expect that intensifying affordability pressures could start to dampen this upwards trend,’ she explained.

‘Economic conditions have strengthened but while the Bank of England has signalled an improved economic outlook since May, headwinds remain and the message about future rate rises being measured and gradual remains unchanged,’ she added.

Balfour Beatty is still not happy with Carillion’s proposed business plan for a proposed merger of the two companies, despite Carillion yesterday improving the money on the table for Balfour Beatty shareholders.

There will therefore be no extension of the ‘put up or shut up’ deadline of 5pm tomorrow (21st August 2014).

Yesterday Carillion offered Balfour Beatty shareholders a 58.268% share of the joint company, instead of the previously suggested 56.5%, adding £200m to its valuation of the Balfour Beatty business.

But Balfour Beatty said that two deal breakers still remain. The first is Carillion’s business plan to shut most of Balfour Beatty’s UK construction business just when it is poised to benefit from market recovery. The second is Carillion’s insistence that the sale of US subsidiary Parsons Brinckerhoff should be scrapped.

Balfour Beatty’s board has unanimously concluded that the new proposal is still not in the best interests of its shareholders and has decided to reject the proposal.

Balfour Beatty said that it would therefore not be seeking an extension from the Panel on Takeovers & Mergers to allow any more time for talking. It reiterated its intention to remain on its independent path and sell Parsons Brinckerhoff. Canada’s WSP is reported to be the main name in the frame for this.

It also remains on a quest for a CEO. It has been without one for more than three months now, since sacking Andrew McNaughton on 6^th May.

The Health & Safety Executive is investigating the death of a construction worker who fell from the fire-damaged Eastbourne Pier yesterday onto the beach below.

Emergency services were called shortly after 4pm to reports that a man had fallen from the pier. An air ambulance landed on the beach next to the pier, but the 44-year-old man from Cumbria was declared dead at the scene from head injuries incurred in the fall.

The pier was destroyed by fire on 30^th July.

The clean-up operation has seen charred debris loaded into skips and repair work is progressing to make the site safe for re-opening of the undamaged section of the pier in September.

The Construction Workers Compensation Scheme (TCWCS) has launched a publicity drive in Scotland to find blacklist victims eligible for compensation.

But unions are saying that blacklisted workers are better advised to join the ongoing legal action rather than accept a pay-off.

TCWCS has issued a call north of the border to all those worked in construction anytime up to 2009 inviting them to contact the scheme’s administrators to find out whether they are entitled to financial compensation.

The scheme was launched on 4^th July (see previous report here) to pay compensation to those who suffered financially from being on the illegal construction industry blacklist run by the Consulting Association until it was closed down in 2009 after a raid by the Information Commissioner for breaching data protection legislation. Most major contractors used and contributed to the blacklist.

Eight of them – Balfour Beatty, Carillion, Costain, Kier, Laing O’Rourke, Sir Robert McAlpine, Skanska UK and Vinci – have admitted culpability and are offering compensation of between £4,000 and £100,000 to blacklisted workers.

The Consulting Association held the names of around 3,000 workers. According to figures published by the GMB union, there may be 574 people in Scotland who are eligible for compensation.

However, the GMB union is advising people that if they were blacklisted they stand to make much more by waiting for the outcome of litigation rather than settling for a fast-track pay-off.

A spokesperson for TCWCS said: “We are encouraging anyone in Scotland who worked in construction in the years leading up to and including 2009 to contact the TCWCS freephone helpline or look at the website for further information – we are really keen to find as many people as possible who are eligible for compensation, so do get in touch. Or if you know someone else who worked in construction, please encourage them to pick up the phone to us or log onto www.tcwcs.co.uk to find out whether they are eligible for compensation. Enquiries to the scheme are handled quickly and, if you are eligible, joining the scheme is completely free of charge. TCWCS is even covering the cost of independent legal advice for every eligible applicant to help them decide whether the scheme is right for them."

But GMB national officer Justin Bowden said: "Most people blacklisted by the construction companies behind TCWCS stand to win many times more from the courts. Therefore they should not be fooled by the cut price compensation on offer and should see it for what it is, a damage limitation publicity stunt.”

Law firm Leigh Day, acting for GMB, began action in July in the High Court in London seeking compensation for 122 GMB members blacklisted by Carillion and the other firms. GMB’s claims are joined with a further 449 claims by two other unions and one other party.

As part of the group litigation order, the four parties including GMB were given permission to write to all those blacklisted. The ICO has until 25th August to give Leigh Day  the addresses.

“Once we have the addresses we will be writing jointly to everyone,” Justin Bowden said. “When we write to all those blacklisted we will tell them that one purpose of the scheme is for the companies involved to avoid High Court litigation. We will urge workers to get in touch with their current or previous union for advice first.”

He added: “TCWCS does not mention that compensation in their scheme is capped, does not include damages for misuse of private information, and does not involve the companies giving any information about how they were involved in blacklisting. None of these restrictions are found in court.”

He concluded: “GMB has a simple message to anyone on the blacklist: get free legal advice from us or your union before you make any decisions. The companies should get serious and make proper restitution and close the book on this shameful chapter.”

Following discussions with Balfour Beatty’s major shareholders, Carillion has offered them an improved 58.268% share of the combined company if they accept a merger between the two companies.

Before talks broke down in the wake of Carillion’s surprise demand that the Parsons Brinckerhoff sale be cancelled, Balfour Beatty’s board had previously agreed to a 56.5% share for Balfour Beatty shareholders.

The new offer values Balfour Beatty at £2,086 million. The previously agreed deal valued it at £1,886 million.

Carillion said the improved offer represented a premium of 36% to the Balfour Beatty share price prior to news of the merger talks breaking and a 22% premium to the closing share price on 18th August 2014.

Carillion’s board said that it hopes that on the basis of these improved terms the board of Balfour Beatty will now get back round the table.

Under Stock Exchange rules, Carillion has until 5pm this Thursday, 21st August 2014 to make a final firm offer or to walk away. In order for discussions to continue and for mutual due diligence to be concluded, Balfour Beatty must request that the Panel on Takeovers & Mergers extend this deadline. Carillion said that it hopes this will now happen.

Carillion chairman Philip Green said "Given the scale of the prize for shareholders of both Balfour Beatty and Carillion from a merger of the two companies, the board of Carillion remains committed to moving forward in a constructive and collaborative way with the board and management of Balfour Beatty to create a world-class business and very significant value for the shareholders of both companies."

Although the merged company would be majority owned by Balfour Beatty shareholders, it would be controlled by Carillion executives, with a leadership team Philip Green as chairman, Richard Howson as CEO and Richard Adam as CFO – all from Carillion. Three Balfour Beatty non-executive directors would also join the board.

Carillion has also reaffirmed its offer to pay reasonable costs incurred by third parties bidding to purchase Parsons Brinckerhoff, up to £10 million in aggregate.

Within 20 minutes of Carillion issuing a statement outlingin its improved offer, the Balfour Beatty board put out a holding response, stating: "The board of Balfour Beatty notes the announcement made by the board of Carillion this afternoon. The board of Balfour Beatty will consider this announcement by Carillion and will make a further announcement in due course."

The world’s wealthiest people are looking to Monaco, the tax haven on the French Riviera, to buy property due to its low tax and banking services, but there is a lack of space.

It is experiencing a luxury housing boom that includes the world’s most expensive penthouse as developers prepare for an influx of millionaires and billionaires escaping higher taxes or a loss of banking privacy in Switzerland.

Wealthy buyers have always been drawn to Monaco’s security, sophistication and climate but now it is the financial rules that are seen as a must have, according to Jean Claude Caputo of Savills on the French Riviera.

New taxes on luxury homes in London and the United States are also adding to the attractions of buying in Monaco and it is estimated that one in three of Monaco’s 38,000 residents are millionaires.

As a result some of the world’s most expensive properties are being built including the Tour Odeon, a double skyscraper being built by Groupe Marzocco near Monaco’s Mediterranean seafront which has a 3,300 square meter penthouse with a water slide connecting a dance floor to a circular open air swimming pool. It is set to go on the market next year priced at around €300 million.

So far, the developer has found buyers for 26 of the 36 luxury homes that have been offered for sale in the Tour.

While Switzerland also has some of Europe’s lowest tax rates, it’s becoming less attractive to luxury home buyers as the country’s financial secrecy laws are eroded amid a move toward a global standard of information exchange between tax authorities.

Other jurisdictions, including Monaco, are looking for ways to tap into the wealth held in the Alpine country and Monaco has emerged as an obvious successor.

Asking prices for luxury homes in Geneva have fallen by an average of about 30% in the last 12 months and values have dropped by as much as 6%, according to Alex Koch de Gooreynd, of Knight Frank.

Central London’s luxury home market has also shown signs of cooling amid new taxes and more on the horizon. There is a capital gains tax being introduced on properties sold by people living abroad and the idea of a mansion tax is constantly discussed.

Larger apartments are in demand from home buyers moving their families to the principality. While just 15 new apartments sold there last year, the average price was €9.3 million compared with €2.9 million two years earlier, according to government data. The average price of homes with five bedrooms or more rose 24% last year compared with a 9% fall for studios, according to the report.

The Tour Odeon will be Monaco’s first high rise development since the 1980s. A quarter of the apartments sold on the open market by Groupe Marzocco have gone to expats from the former Soviet Union.

The lower floors were sold to Monaco’s government for use by local citizens, who will enter the building through a separate entrance.

But the tax…

UK house prices increased by 10.2% in the year to June 2014, down from 10.4% in the year to May 2014, the latest official figures show.

House price annual inflation was 10.7% in England, 3.5% in Wales, 6% in Scotland and 4.9% in Northern Ireland, the data from the Office of National Statistics shows.

Overall the figures show that house prices have been increasing strongly across most parts of the UK, with prices in London again showing the highest growth at 19.3%. In the South East prices were up 9.7% and in the East of England up 7.9%.

However, excluding London and the South East, UK house prices increased by 6.3% in the 12 months to June 2014 and on a seasonally adjusted basis, average house prices increased by 0.5% between May and June 2014.

The data also shows that in June prices paid by first-time buyers were 12% higher on average than in June 2013 and for existing owners prices increased by 9.5% for the same period.

The market is moving from strength to strength with widespread recovery apparent across the country and house price growth advancing in a steady, healthy direction, according to Peter Rollings, chief executive officer of Marsh & Parsons.

‘London remains at the top, driving national house price increases, demonstrating its exceptional appeal as a place to live and invest for both domestic and foreign buyers,’ he said.

‘Furthermore, the upturn in the market has boosted consumer confidence, encouraging sellers to put their homes on the market, resulting in a fresh influx of available properties for sale. This is good news for the London property market as it continues its strong, sustainable recovery,’ he added.

However, David Newnes, director of Reeds Rains and Your Move estate agents owned by LSL Property Services, believes that behind the scenes house price growth is more moderate and sustainable beyond London and the South East.

‘These two weighty regions distort the story and are not representative of the wider UK housing market and therefore should not disorient overarching government policy. Prices actually dropped in seven regions across England and Wales in June. This return to a more natural state of affairs indicates a stable market,’ he said.

‘Lending has largely adapted to the wave of regulatory changes in the spring, and sales are getting back on course as demand for homes increases with completions rising to the highest level in seven years in July. New buyer demand is a vital bedrock for the recovery to continue building on, and further interventions or borrowing caps could pull the rug out from under the market,’ he warned.

He also pointed out that outside of the capital, Help to Buy is giving many households a much needed leg up onto the ladder, helping activity levels and ensuring growth makes further headway to reach areas of the country that are still only just getting back on their feet.
There are signs of cooling, according to Sophie Carter, UK director of the US property investment…

Residential property sales in Spain increased by 8.8% in June compared to the same month a year ago, the latest data from the National Statistics Institute shows.

The year on year increase in June is the fourth consecutive monthly rise following those experienced in March, April and May, when home sales rose by 22%, 5% and 5.4%, respectively.

The rising sales trend also ends 10 consecutive months of year on year declines and the growth is mainly due to the sales of existing homes while sales of new homes fell by 3% year on year.

The highest number of home sales per 100,000 population were in Valencia followed by the Canary Islands and the Balearics. In relative terms, the regions where home sales increased most year on year were Madrid with a rise of 30.4%, Extremadura up 25.7% and Navarra up 19.3%.

The largest decrease was in Castilla-La Mancha with a fall of 21.6% followed by La Rioja where sales fell by 12.8% and Castilla y León where they were down by 10.3%.

The figures come as a new report indicated that foreign demand for second homes on the Costa del Sol has been strong this year. Overseas buyers regard property in the area as a bargain, according to the report from real estate consultancy Aguirre Newman.

It also reveals that 90% of foreign buyers them can afford to buy without financing while local demand is hampered by lack of mortgage choice.

There was a slight increase in the number of new developments being started on the Costa del Sol, according to the report, with four new developments being started in 2013. Not a single new development was started in the preceding three years.

However, the number of new homes for sale fell by 18% in 2014, from 18485 to 16,508 homes, and 30% of new homes on the coast remain unsold.

The average new flat for sale on the Costa del Sol is 127 square meters with two bedrooms and costs €196,956, whilst the average single family homes is 279 square meters and costs €393,520. That means prices have fallen 5.7% and 9.7 % respectively in a year.

Looking forward, Aguirre Newman forecast that holiday home prices in the best areas close to services and amenities will stabilise in 2014, but continue to fall this year and next in less attractive locations, thanks to the excess inventory and weak demand from local buyers.

A shift in supply and demand in the London prime property rental market is resulting in marked variations depending on location.

The latest rental values index from Chestertons recorded a decline in average rents of 0.8% in the 12 months ending in June 2014.

However, the Index showed a modest increase in average rental values of 0.5% in the second quarter compared to the first quarter of the year although figure this masks variation between submarkets.

The South West saw values fall 0.3% and was the only part of London to record a quarterly drop in prime rents while the North East and Central both saw rental growth of 0.9% over the quarter.

At local market level, Fulham experienced the biggest rise in rents with growth of 7.6% and the firm says this was due largely to strong demand for houses which were in very short supply, while Battersea suffered the sharpest decline with a fall of 3.5%.

The average weekly rent for the index stood at £912 at the end of June. The highest average weekly rental values were achieved in St John's Wood at £1,901, Knightsbridge/Belgravia at £1,804 and Mayfair at £1,700. The lowest average weekly values were recorded in Canary Wharf at £579, Tower Bridge at £468 and Kentish Town at £621.

With the economic recovery gathering momentum and simultaneously boosting the employment market, households are feeling more confident about property commitments, the index report says.

Recent survey evidence suggests that the majority of tenants would choose to own their property rather than rent, however with real incomes barely keeping pace with inflation and annual house prices in London rising by double digit percentages affordability is likely to make this an unobtainable dream for many. Average house prices in June in Kensington and Chelsea and Westminster, for example, were 57.5% and 54.4% respectively above their pre-global recession peak.

‘The tightening of mortgage lending criteria thanks to the implementation of the Mortgage Market Review, plus the likelihood that interest rates will rise before next year's general election and possibly before the end of this year, mean that many households will be forced into the private rented sector,’ the report points out.

The number of households in privately rented accommodation could rise by 131,250 between 2011 and 2021 even if the current ratio of 25% remains static. However, if the level of increase seen between 2001 and 2011 is maintained then this figure could rise to 492,630 or 34.5% of all households.

‘In the shorter term, with supply and demand becoming better aligned, rents are likely to continue to increase gradually across the board over the reminder of this year, aided by a likely rise in the number of forced renters. Increased activity from relocation agents also points to growing tenant demand from the corporate sector. The best prospects for growth lie in the decentralised areas where average rents are lower than in the prime central locations and will offer tenants better value for money,’ it explains.

‘In…

House-builder Persimmon has seen its half-year profits grow by more than 50%, thanks in part to increased use of offsite fabrication.

For the six months to 30 June 2014, Persimmon’s underlying pre-tax profit increased by 57% to £212.9m (2013 H1: £135.3m).

Total revenues of £1,198.1m were up 33% (2013 H1: £899.9 million).

Legal completions for the first six months of 2014 increased by 28% year-on-year to 6,408 new homes (2013 H1: 5,022) and the average selling price was 4.3% higher at £186,970 (2013 H1: £179,199). 

The board said that “the swift and significant increase in production has been supported by our Space4 manufacturing facility. This modern method of construction has enabled Persimmon to secure greater efficiencies in resourcing and site activities supporting the delivery of our build programmes”.

Space4 increased its output of insulated panel frames to construct 2,483 new homes in the first half of the year, a 37% increase over the first half of 2013.

Space4 operates the largest automated timber frame manufacturing plant in the UK.

Group chief executive Jeff Fairburn said: "Persimmon has produced another strong performance in the first half of 2014, taking advantage of the current market opportunities to deliver growth whilst strengthening the financial position of the business.

“As we have entered the traditionally slower summer trading weeks, we have been encouraged by our private sale reservation rate since 1 July which is currently running 9% ahead of the same period last year.”

Ibstock is increasing its UK brick production this year by 200 million units.

An additional 125 million bricks will be produced by Ibstock this year after a £22m redevelopment of a factory in Newcastle-under-Lyme last year and the re-commissioning of a mothballed plant in Leicester. 

With other production enhancements at other factories, the company is set to bring to the market almost an additional 200 million bricks in 2014.

Ibstock, a subsidiary of Irish building materials group CRH, closed its Leicester factory in 2008.

Total UK brick production in 2013 was approximately 1.73bn bricks.This year the figire is expected to be substantially higher, with Wienerberger also adding capacity this year at its 14 UK plants by 200 million bricks before the end of this year.

Fencing supplier Echo Barrier has launched a new version of its H2 sound reduction barrier.

The Echo H3 has been developed by the company’s acoustic experts and is now fire resistant and weatherproof.

It has a sound dampening core as standard, achieving noise reduction of up to 30dB, the manufacturer says.

New products also in production include an acoustic tent and a transparent barrier.

Technical director Peter Wilson said: “Our team of acoustic engineers are constantly researching and developing new solutions to ensure we can meet the needs of our customers. The number of contractors now specifying noise reduction solutions as part of their site management credentials is increasing rapidly, as the impact of noise on local communities becomes more of an issue.”

The average price of a typical three bedroom house in Jersey increased to the highest it has been for three years in the second quarter of 2014, the latest official data shows.

The House Price Index report from the Statistics Unit shows that all property types saw an increase in the mean price of properties sold compared with the previous quarter.

But it was the three bedroom sector that has performed the best with an average price of £508,000 and overall the mix adjusted price of all property sold was up 5% quarter on quarter.

But it must be remembered that prices are coming from a low base. For example, the first quarter of 2014 recorded the lowest level of average property price in Jersey for more than five years.

The turnover of properties in the second quarter of the year was 13% greater than in the previous quarter and at a similar level to the average seen in the latter half of 2013 at around 300 properties sold per quarter.

Share transfer transactions accounted for more than half, 56%, of all eligible flat sales, a slightly greater proportion than in 2013.

The index measures the combined average price of one and two bedroom flats and two, three and four bedroom houses and includes share transfer properties and is seasonally adjusted.

It also gives an idea of trends in terms of prices and sales. In 2008 and 2009 the mean price of one bedroom flats had been essentially stable at around £230,000. During 2010 and 2011 a reduction in the mean price of this property type was recorded, largely attributable to an increase in the turnover of lower priced share transfer properties.

The mean price then increased slightly during 2012, to around £210,000, where it remained before falling below £200,000 in late 2013 and early 2014. In the latest quarter the mean price of one bedroom flats at £219,000 was 10% higher than in the previous quarter.

Following a period of stability throughout 2008 and 2009, when the mean price of two bedroom flats was around £320,000, the subsequent two years saw increases, taking the annual mean price of this property type to around £340,000 in 2012.

Since the first quarter of 2013 the average price of two bedroom flats has remained essentially stable at around this level, except for a downward fluctuation recorded in the fourth quarter of 2013.

In the latest quarter the mean price of two bedroom flats at £354,000 was 4% higher than in the previous quarter and almost 7% higher than the average for 2013.

The mean price of two bedroom houses sold between 2008 and 2010 was around £400,000 but has since fallen, with the annual average price recorded in each year from 2011 to 2013 being below £400,000.

In the latest quarter, the mean price of two bedroom houses at £382,000 was similar to the previous quarter, just 1% higher, and 2% higher than in 2013.

After a period of strong…

It’s all very well training civil servants in project management, but the ministers and permanent secretaries that make the decisions need training too.

That’s one of the conclusions of a highly critical Public Accounts Committee report, out today, into the work of the Major Projects Authority (MPA).

"There remain serious weaknesses in government’s project delivery capability,” said committee chair Margaret Hodge. “We welcome the creation of the Major Projects Leadership Academy, but the MPA needs to target top decision-makers as well as managers. This should include ministers, shadow ministers and permanent secretaries.”

Two ministers have attended half-day or full-day courses on project management run by the MPA and found it helpful, the report notes. “It would be beneficial to extend this support more widely, as it would help to develop greater awareness of project delivery issues at the highest decision-making levels in government.”

The report also says that there needs to be better planning at the outset of projects and greater transparency in decision making.

The MPA was established in March 2011 as a partnership between the Cabinet Office and the Treasury to improve project delivery across government.

In September 2013, the Government Major Projects Portfolio consisted of 199 major projects covering a wide range of activities, from transforming how departments do their work to building ships and motorways. These projects represent a considerable and rising cost to the taxpayer: the MPA reported in May 2014 that the whole-life cost of these projects was £488bn, an increase of some £134bn on the previous year.

Mrs Hodge said: "We support the work of the Major Projects Authority and welcome the progress it has made so far, but without stronger powers it is unlikely to achieve its aim of a systemic improvement in project delivery across government.”

The report says: The MPA is unlikely to achieve a systemic improvement in project management without stronger, more formal mechanisms for driving change. At present, the Treasury does take account of MPA recommendations when making spending decisions, but it is under no formal obligation to follow them. Equally, the MPA often has to rely on personal credibility and informal influence, rather than having formal mechanisms, to get its voice heard in its work with departments. For example, the MPA is helping with recruitment for leadership positions on several major projects, but only on an ad hoc basis and told us that its role is not yet ‘systematised’. This lack of formal powers reduces the influence of the MPA with the Treasury and with departments, limiting its ability to drive improvements in project management.”

It recommends that the chief executive of the MPA should have a formal mechanism available to set out his or her position if politicians over-rule. “Where ministers or officials reject MPA recommendations, there should be a formal and transparent process in place to document this.”

More controversially, the committee calls for more Treasury control over major projects. “The Treasury should take ownership and responsibility for overseeing the government portfolio,” the committee suggests. “It should ensure that decisions about whether, and how, individual projects should proceed are based on each project’s impact on the total portfolio’s value and risk, and the relevant department’s delivery capability and existing portfolio of projects.”

The full report, Public Accounts Committee – 10th Report: Major Projects Authority, can be downloaded at http://www.publications.parliament.uk/pa/cm201415/cmselect/cmpubacc/147/14702.htm

Only half of aspiring home owners in the UK are aware of the new Mortgage Market Review rules that were introduced in April, according to new research.

Of those that are aware of the MMR, many still don’t understand its impact although many are now preparing in advance for their mortgage application, the research from TSB shows.

Some 41% of those made aware of the MMR feel it will ensure they can only borrow what they are able to afford and after being offered a straightforward explanation of the changes, only 3% felt they still didn’t know how the MMR may affect them.

The bank says that this shows how such explanations can go a long way to help consumers and it is good news that many aspiring home owners are now considering preparing for their mortgage application better by taking a few sensible actions.

More than half, 53%, said that they will save up as much as possible, 49% said they will check their credit report before applying for a mortgage, 45% said they will take the time to work out what they can afford ahead of their application, 29% will look to pay off existing debts and 21% will make sure they’re on the electoral roll.

TSB advices that new mortgage applicants in particular should check with their bank or building society how much you can borrow before searching for properties. TSB offers a soft search approval in principle with no impact on credit rating.

They should also have realistic expectations about what they are able to repay and work out how much you earn, spend and what you spend it on and check their report which can be done online.

Other tips include saving as much as possible as the bigger the deposit, the lower the cost of your mortgage is likely to be and if you’ve never had any borrowing, take out some form of credit such as an agreed overdraft or a credit card, but ensure you pay it back regularly to build your credit rating.

TSB also offers assistance for people whose application has been rejected, helping them understand the reasons behind the decline and assisting them wherever possible.

‘Though the Mortgage Market Review is usually recognised as a positive change by people who understand it, many still have worries as it remains shrouded in mystery,’ said Ian Ramsden, TSB mortgages director.

‘We say don’t panic, but do prepare for your mortgage application with some straightforward, simple steps. Break down your finances, work out how much you can afford and aim to future proof your mortgage as far as possible by discussing plans with your mortgage adviser,’ he added.

Higher fees and the recently introduced mortgage cap are having an effect on the prime property market in Dubai with price growth weakening.

After entering positive territory in the middle of 2011, annual residential price growth in Dubai’s mainstream segment has been very strong indeed. However, after peaking at 35% at the end of 2013, the growth rate has now been slowing.

According to Khawar Khan of international real estate firm Knight Frank the deceleration in price growth can be attributed to a combination of higher transfer fees and the mortgage caps.

But he pointed out that the new rules have impacted Dubai’s luxury homes market to a much greater degree. Indeed prices increased by just 6.3% year on year in the second quarter of 2014 compared with 24% in the mainstream property market.

‘Established, mainstream locations such as Dubai Marina remain very popular among western expats and continue to see healthy demand and thus price growth. That in turn has led some investors to look elsewhere for value, including newer developments in areas such as Jumeriah Village, Dubai Sports City and Dubai Silicon Oasis where prices are rising off a relatively low base,’ said Khan.

‘Therefore with demand for residential property remaining strong in both newer, as well as more established, mainstream locations in Dubai, prices in this segment continue to post strong gains,’ he explained.

He also pointed out that the new mortgage rules implemented by the UAE Central Bank are stricter for those buying residential property worth over AED5 million. For example, if an expat buyer was to purchase a property above that value, they would need to raise a 35% deposit. By comparison, the same buyer looking for a property worth less than that amount would require a 25% deposit.

‘Thus, while the new mortgage caps have hit the residential market as a whole, they have had a lesser impact on the mainstream segment,’ added Khan.

He explained further that after halving between 2008 and 2010, both mainstream and luxury home prices have since largely recovered. However, rents in the latter segment haven’t been able to keep up, which in turn has led yields to harden. By comparison, as a result of a stronger recovery in rents, mainstreams yields continue to look relatively attractive to investors.

Finally, Dubai’s strong economic conditions and buoyant labour market continue to attract foreigners in their droves. ‘Since this rising population needs decent, and not always luxurious, accommodation, we expect demand to outstrip supply in the short term. All else equal then, we believe that mainstream residential prices will continue to rise faster than luxury home prices over the next 12 to 18 months,’ added Khan.

Travis Perkins Group is staffing up for a major expansion drive.

The builders' merchant group already operates from 1,900 sites around the UK across the 17 businesses that make up the company.  It employs nearly 24,000 people and is the UK’s largest supplier to the building and construction market. 

However, it wants more.

“Our ambition post-recession is to substantially increase trading space over the next five years,” said group property director Martin Meech. “This includes a considerable number of brownfield or implant branches and stores, and more than 30 trade parks.”

First step is putting in place a new team to drive the property acquisition and management programme, with five senior appointments.

Peter Webb has been appointed property director for the general merchanting division. Phil Joyce is divisional property director for P&H. Nick Pinney joins from Strutt & Parker to be property director for the contract merchanting division. Jim Adams has joined as property director for the consumer division (Wickes). Finally, Darren Screen has joined as property finance director.

This restructure has also created a further 20 new positions within the group property team at head office in Northampton, including the promotion of Graham Lund to director of construction.

The price of property coming onto the market in the UK has fallen for the first time this year, down by 0.8% or £2,116, according to the latest figures from Rightmove.

This takes the price of an average home to £270,159 and means that the annual rate of growth has fallen from 7.7% to 6.5%.

However, Rightmove has upgraded its 2014 forecast and says that new seller asking prices will see an 8% annual increase by the end of the year, hitting the top end of its original forecast of 6% to 8%.

The firm also says that there is evidence that the frenetic activity seen in some areas during the first half of the year is cooling, in part due to stricter mortgage eligibility criteria and previously pent-up demand having now been partially satisfied.

However, the significance of the first fall of the year in new seller asking prices should not be overstated in spite of the dampening effect of the more cautious tone from the Bank of
England. July has seen price falls in six of the last 10 years, with this drop largely reflecting a normal seasonal slowdown.

‘A price fall in July is not unexpected as prospective buyers turn their attention to the summer holidays. Buyer confidence may also have taken a knock with suggestions that mortgages are becoming harder to get and repayments may get more costly sooner than originally anticipated should the rumours of an interest rate rise before the next election come true,’ said Miles Shipside, Rightmove director and housing market analyst.

He pointed out that the Bank of England is trying to cool some of the existing and potential excesses of the housing market, with affordability, personal debt and default risk all high on the agenda. The Mortgage Market Review (MMR) and additional high loan to income and stress -testing guidance, along with suggestions of earlier than expected interest rate rises have had a dampening effect.

‘However, while lower than in the latter months of 2013, Bank of England mortgage approvals are still running at an average of over 60,000 a month, 23% higher in the year to date than during the same period in 2013, and 40% above the 48,162 monthly average between 2008 and 2012. It is also likely that current mortgage approval numbers are still being curtailed by the hangover from the implementation challenges of MMR,’ he explained.

‘Market conditions still compare favourably with this time last year, with growth in both the economy and employment, plus a comparative thaw in mortgage availability,’ he said, adding that he does expect that market activity will slow down in the run-up to the election in May next year.

‘Faster turnover of property breeds confidence among potential sellers, bringing more to market. This is important to help satisfy pent-up buyer demand and it also helps to keep a lid on prices if there is more property choice for buyers and more competition among sellers,’ he pointed out.

Rightmove…

Plastic pipe producer Polypipe has shown a steady start to life on the London stock exchange, reporting first-half numbers that reflect market growth.

Polypipe was floated in the stock exchange in April this year. Today it reported its results for the six months to 30 June 2014. Revenue was up 11% on last year to £168.2m and basic operating profit was up 29% to £22.7m.

However, initial public offerings (IPOs) are a costly business and exceptional charges of £12.4m were incurred in relation to the flotation costs. A further £8.6m of exceptional finance costs were incurred from a debt refinancing.

As a result the business made a pre-tax loss of £4.6m for the first half, compared to a £9.7m profit for the same period last year.

There was strong demand for residential piping systems from UK housebuilders, increasingly from smaller developers and projects outside of London and the southeast. There was also good demand from road and rail projects, new high-rise apartment blocks in London and from flood alleviation schemes.

Chief executive David Hall said: "I am delighted with the progress that we have made following the group's successful IPO earlier this year and these results show that we are delivering on the strategy we set out at the time. The group's healthy growth in sales and underlying profits demonstrates the confidence returning to our sector and a deserved reward for operational improvements and investment we made when market conditions were much tougher. We are well placed to capitalise on the future growth opportunities and I remain confident that we will deliver results for the full year in line with our expectations at the time of the IPO."

The average advertised rent in Great Britain increased by 6.56% in July 2014 compared to the same time last year, reaching £1,029 per month, the latest index shows.

National rents surpassed the £1,000 per month mark in June 2014, and since then have continued to climb steadily, rising an average of £11 per month over the past four weeks, the data from Move with Us shows.

Contributing to the sustained national growth is the average rent in Greater London which stood at £2,376 per month in July and showed no signs of abating having increased consistently for the last 12 months.

On average, renting a property in the capital is now £43 more expensive that it was at the beginning of July and £223 or 10.11% per month more expensive than July 2013 when rents reached a low of £2,148 per month.

The data also shows that these improving markets conditions are not limited to the capital. A monthly increase of £9 in the South East means properties in the region are also becoming more expensive to rent, with average prices £90 (8.07%) per month higher than the same time last year.

Average advertised rents in East Anglia, traditionally an expensive marketplace given its commuter connections to London, averaged at £948 per month in July. As rents continue to increase, this month by £13, it would not be unexpected to see average advertising rents overtake the £1,000 per month mark within the next 12 months.

As house prices in Scotland stalled in July, the rental market flourished. Average rents stood at £737 per month in July, approximately £60 per month more than when compared to the same time last year. Other northern regions also experienced growth in July. The North West saw a slight decline over the last 12 months of 1.43%, with average advertised rents at £625 per month in July 2014.

‘Typically if the sales market improves, the rental market falters and vice versa. However, any fears that the rental market would decline as the sales market sprang back to life have now been allayed. The rental market has continued to grow alongside the sales market. It’s as strong as it’s ever been,’ said Robin King, director of Move with Us.

‘For once it’s not just the South that’s driving climbing advertising rents as improvements have spread up to the northern regions too. While the North West was the only region where the average advertising rent declined in a yearly comparison, we expect to see rents in this region increasing in the coming months,’ he added.

House-builder Bovis homes has reported a 75% leap in first half revenues and has more than doubled its profits.

In the six months to 30 June 2014 Bovis Homes made revenues of £322.1m (2013 H1: £184.4m). Profit before tax was up 166% to £49.4m (2013 H1: £18.6m).

With operating profit up 150% to £51.2m (2013 H1: £20.5m), the operating margin was 15.9%, up from 11.1% last year. This is expected to be more than 17% for the full year.

Bovis completed 1,487 homes in the half-year, a 54% increase on 963 for the same period last year and a new high for the company.

With 3,530 homes completed in the first 32 weeks of the year, the update strategic plan is to grow the business to achieve annual volumes of between 5,000 and 6,000 new homes, with a return on capital employed of at least 20% by 2016.

The land required to operate at this level will increasingly be sourced through strategic land conversion.  After a period of greater consented land market purchases, Bovis is reverting to more of a balance between consented land purchase and strategic land conversion.

Chief executive David Ritchie said: "In the first half of 2014 the group has delivered a record number of legal completions leading to a 150% increase in operating profit. This significant increase is the result of the compound positive effect of increased volumes, improved average sales price and stronger profit margins.

"The group has also had its most successful half year of land investment acquiring around 4,600 high quality consented plots on 23 sites.  This will support further sales outlet growth into 2015 and beyond, which is expected to lead to further strong improvements in return on capital employed.

"The strong trading position will enable the delivery of a significant increase in profits in 2014 in line with our expectations, subject to stable market conditions. With a further increase in capital turn, this level of profit is expected to generate a return on capital in 2014 of approximately 16%.”

Shareholders are set to benefit, with an enhanced dividend for 2014 of 35 pence per share, followed by a further 35 pence per share in 2015.

The latest Construction Trade Survey, published today, show that activity rose in the second quarter of 2014 across all areas of construction, including building contractors, specialist contractors, civil engineers and product manufacturers.

Future growth, however, may be put at risk by rising costs, as many contractors are still working on projects won at low prices. Cost inflation since winning these jobs has eroded expected profit margins in many cases.

Commenting on the survey, Construction Products Association economics director Noble Francis said:  “Firms across construction reported rises in output during Q2 and the majority of the industry is expecting activity to rise over the next 12-18 months.

“Unsurprisingly, private new housing was the key driver of construction activity.  On balance, 41% of contractors reported that private housing output rose in Q2 compared with a year ago.  The largest construction sector, private commercial, also enjoyed an increase in activity with 37% of contractors reporting that commercial output rose in Q2 compared with a year ago.  In addition, 46% of building contractors reported that work in publicly-funded education and health construction saw a return to growth, reflecting the recovery in capital investment in 2014/15 with less than a year to go to the next election. 

“Tender prices rose in Q2.  Many major contractors are still working on projects won in 2013 at relatively low prices but have been suffering from the key concerns of rising costs and skills availability, especially in specific sectors such as private new housing.  Overall, 80% of building contractors reported, on balance, that costs rose over the past year; 95% reported that materials costs rose over the past year and 75% reported that labour costs rose over the past year.  In terms of skills, 47% of building contractors reported that bricklayers and carpenters were difficult to recruit.”

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Key survey findings for Q2 include:

• 41% of building contractors reported that private housing output was higher than a year ago;

• 46% of building contractor firms reported public non-housing (education and health) output was higher than a year ago;

• 37% of building contractors reported that private commercial output was higher than a year ago;

• 58% of firms reported tender prices were higher than a year ago;

• 80% of building contractors reported that total costs were higher than a year ago;

• 95% of building contractors reported materials costs were higher than a year ago;

• 75% of firms reported that labour costs were higher than a year ago;

• Profit margins rose for the first time since the financial crisis six years ago (according to 5% of building contractors);

• 14% of specialist contractors reported being paid within 30 days, the highest recorded

• 47% of building contractors reported difficulty recruiting bricklayers and carpenters.

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The Construction Trade Survey takes data every quarter from six industry trade associations: Construction Products Association; Civil Engineering Contractors Association; National Federation of Builders; Federation of Master Builders; National Specialist Contractors Council; and UK Contractors Group.

UKCG director Stephen Ratcliffe said:  “There are some mixed signals in these results showing that there is some way to go before full recovery in the sector.  As we move towards the general election next year, UKCG will continue to stress to politicians on all sides of the political divide the need for a visible public sector pipeline of infrastructure investment and a steady flow of new projects."

National Federation of Builders chief executive Richard Beresford said:  “The good news is construction output is rising.  However, higher tender prices, materials and labour costs and difficulty in securing skilled labour at reasonable cost all highlight the fragility of this recovery.  Longer term institutional investment and more easily accessible finance options for the industry would go some way to securing stable, sustainable growth.”

The private rental market in Scotland saw a sharp rise with average rent prices rising 10% last month compared to 4.4% in the UK as a whole.

The data also shows that, for the first time this year, private rental prices in all regions of the UK have risen, with an average increase of 4.4% since June.

The HomeLet Rental Index, the largest monthly survey of private tenants in the UK, shows that annually the UK private rental market continues to rise. The average UK private home rent rose by 8.3% over the year to July 2014. The average rent in the UK now stands at £900 a month, compared to £825 a year ago.

While in previous months the Greater London market has shown itself as a clear front runner in rent rises, July’s data points to fast rising markets in other parts of the UK.

Scotland has seen the biggest increase in rents across the whole of the UK with rents rising 10% from an average of £578 in June to £636 in July. Rent prices in Scotland over previous months have indicated a falling market, with annual figures showing prices falling 0.5% in May and 3.8% in June, so the 10% rise in July represents a sudden change in the state of the market. July's rise was enough to tip Scotland back into positive territory on an annualised basis, with rents now 1.4% higher than a year ago.

Other regions in the UK showing strong growth this month include Wales, East Anglia and the South West. Year on year, East Anglia and the South West have consistently shown the highest rent price rises in the UK, at 9.4% and 8.1% respectively, alongside Greater London at 9.4%.

‘With all eyes on Scotland ahead of the September independence vote, it is interesting to note that in July Scotland has shown the biggest leap in rental prices across the whole of the UK, with a rise in tenant’s incomes too. These are early figures, so it is too early to tell if this represents a sustainable uplift in the Scottish market, but indicates Scotland may be one to watch,’ said Martin Totty, chief executive officer of Barbon Insurance Group.

‘The private rental sector has seen rental values increasing across the whole of the UK this month, without exception. East Anglia and the South West continue to be very strong markets, with annual figures in these regions showing prices rising year on year as fast as the London market, and standing well ahead of the rest of the UK,’ he added.

According to Kate Faulkner, property analyst at propertychecklists, the data suggests that for tenants who can stay for long periods in their rental properties, they are more likely to be able to keep their rental costs down, while moving often could mean paying higher rents, potentially each time they move.

‘Just as with property…

Four out of 10 civil engineering contractors have employed apprentices in the past 12 months, according to the latest annual training and development survey by the Civil Engineering Contractors Association.

The picture appears to be getting better, however. Two years ago, only 19% of companies across the construction industry as a whole offered apprenticeships, according to a 2012 report by the UK Commission for Employment & Skills.

A third of civils contractors are also now recruiting graduate trainees – 32% CECA members took on graduates last year, the survey showed.

CECA’s membership comprises more than 300 contractors of all sizes, covering approximately 80% of the civil engineering market in England, Wales and Scotland.

CECA chief executive Alasdair Reisner said: “It is great news that contractors are recruiting the next generation of employees as the sector gears up to deliver major programmes of work in the future. CECA has long argued that an effective skills system is vital in developing an efficient workforce and is a key driver of economic growth.

“Industry must work together with government and skills providers to ensure the system is demand-led and can respond to the evolving needs of businesses of all sizes. Unless we can continue to recruit and train new entrants, the UK will face a substantial construction skills shortage over the next decade.”

Happy as he may be, the CECA survey still shows that most contractors are doing no training at all – whether at apprentice or graduate level.

Mr Reisner said that he wanted government help to push the message in schools and careers guidance centres that the infrastructure sector was a good place to work. “We need to ensure all children of primary and secondary age, and their teachers, parents and carers, are well informed about the wide variety of challenging, dynamic and exciting job opportunities available in our sector,” he said.

Thirty-six stalled house-building projects have been shortlisted for government loans to help get them started.

The Department of Communities & Local Government has a pot of £850m to lend to schemes for infrastructure that is needed to make the schemes viable. The money will go towards building road improvements, schools and parks to support the extra homes being planned.

The 36 schemes will collectively result in more than 200,000 new homes being built across the country, according to plans. The projects will go through a final due diligence process before receiving the funding.

Sites requiring support even include three schemes in the London area. The continued development of the Greenwich Peninsula is on the list, as is Ebbsfleet Eastern Quarry.

The funding will be available between 2015 and 2020 and will be in the form of a long term loan with interest.

The full list is:

• continued development of the Greenwich Peninsula in southeast London, to help provide nearly 10,000 homes
• Acton Gardens in Ealing, to help provide over 2,500 homes
• Wood Wharf development in London, to help provide over 3,000 homes
• Beaulieu development in Chelmsford, to help provide 3,600 homes
• Bishop Stortford North development in East Hertfordshire, to help to provide 2,200 homes
• redevelopment of the former Rugby Radio Station site, to help provide 6,200 homes
• Monkton Heathfield development outside Taunton, to help provide 4,500 homes
• DN7 initiative in Doncaster, to help provide over 3,000 new homes
• New Lubbesthorpe development in Leicester, to provide over 4,000 homes
• development of North Wellingborough, to help provide 3,000 new homes
• redevelopment of Arborfield Garrison in Wokingham, to help provide 2,000 homes
• Langarth development in Truro, to help provide 1,500 homes
• Cheeseman’s Green development in Ashford, to help provide 1,500 homes
• Dallington Grange development in Northampton, to help provide 3,400 homes
• development at Lawley Village in Telford, to help provide 2,500 homes
• Newcourt Urban Extension in Exeter, to help provide over 2,000 homes
• East Kettering development, to help provide 5,500 homes
• development at Hunts Grove in Gloucester, to help provide 1,750 homes
• Barwell development at Hinckley and Bosworth, to help provide 2,500 homes
• Branston Locks development in East Staffordshire, to help provide 2,500 homes
• development at the Festival Gardens site in Liverpool, to help provide over 1,500 homes
• Bath Riverside development, to help provide nearly 1,900 homes
• Colchester North Growth Area Urban Extension, to help provide 1,600 homes
• Weston Airfield development in North Somerset, to help provide over 2,500 homes
• Ebbsfleet Valley, to help provide over 3,500 homes – this site forms 1 part of the larger area that the proposed Ebbsfleet Development Corporation would cover as part of the 15,000 home Ebbsfleet Garden City initiative
• Overstone Leys development in Daventry, to help provide 2,000 homes
• North West Bicester development, to help provide over 5,500 homes
• Welborne development at Fareham, which will help provide 5,400 homes
• Middle Deepdale development at Scarborough, which will help provide 2,300 homes
• Thetford North development in Breckland, to help provide 5,000 homes
• Lincolnshire Lakes development in Scunthorpe, to help provide 3,500 homes
• Whitfield development in Dover, to help provide over 5,700 homes
• Bela Priors Hall development in Corby, to help provide nearly 3,000 homes
• Alphington development near Exeter, to help provide 1,500 homes
• West Witney development in Oxfordshire, to help provide 1,500 homes.

The first wave of projects to benefit from a UK government £1 billion scheme to provide new homes has been announced with 36 large projects set to get a share.

Communities Secretary Eric Pickles said the move will unlock or accelerate the provision of over 200,000 new homes across the country.

Some £850 million will be released as part of a five year £1 billion programme and five projects will be chosen from a shortlist of 36. The funding will be used to build the infrastructure needed to provide schemes of at least 1,500 homes.

The money will go towards the building of road improvement, schools and parks to support the extra homes being planned and the shortlisted projects will now go through a final rigorous due diligence process before receiving the funding.

Sites include the continued development of the Greenwich Peninsula in South East London, which will help provide nearly 10,000 new homes, while funding is also expected to go to Ebbsfleet Eastern Quarry, to help provide 3,500 homes.

‘Residential construction is now at its highest level since 2007 and continuing to rise, and 216,000 new homes were given planning permission last year. We are supporting locally led development, and this £1 billion programme will help unlock or accelerate over 200,000 new homes across the country,’ said Pickles.

‘This is part of our wider package of housing programmes to support home ownership, increase investment in the private rented sector and further increase house building,’ he added.

Pickles explained that the funding will be available between 2015 and 2020 and will be in the form of a long term loan, with interest, ensuring a fair rate of return for taxpayers.

As well as the £1 billion loan funding, the large sites infrastructure programme also includes £12.5 million capacity funding and expert planning and technical support for councils dealing with large scale sites, as well as brokerage support from central government to unblock obstacles to development.

The shortlisted projects are in Greenwich, east London, Rugby, Monkton Heathfield just outside Taunton, Doncaster, Bishop Stortford, New Lubbesthorpe in Leicester, North Wellingborough, Wokingham, Truro, Ashford, Northampton, Telford, Exeter, East Kettering, Gloucester, Hinckley, Branston Locks in East Staffordshire, the Festival Gardens site in Liverpool, Bath, Colchester, Weston Airfield in North Somerset, Ebbsfleet Valley, Daventry, North West Bicester, Fareham, Scarborough, Thetford North, Ealing, Scunthorpe, Dover, Chelmsford, Corby, Alphington near Exeter, Wood Wharf in London and West Witney.

The £1 billion large sites infrastructure fund is one part of a wider package of support to get large scale housing developments back on track. Other support includes a £12.5 million local capacity fund to enable councils to put in place the skills and resources to move major schemes forward through the planning process.

The government has already helped unlock a range of large scale sites across the country. These include Sherford near Plymouth, where £32 million government investment is being put towards the road improvements needed to support over 5,000 new homes, schools, shops and communities facilities.

In Cranbrook near…