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Category Archives: Uncategorized

Marley Eternit's BIM tutorial

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July 4, 2014

/ The Construction Index UK News

Marley Eternit has produced a video tutorial showing how to find, download and use BIM objects for its range of clay roof tiles.

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Fosters is back with partners

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July 4, 2014

/ The Construction Index UK News

Architectural practice Foster + Partners has paid off its venture capitalist shareholders and retaken full ownership back to its partners.

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Blacklist compensation scheme now open

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July 4, 2014

/ The Construction Index UK News

The Construction Workers Compensation Scheme (TCWCS) has opened to today to applications from the 3,213 people whose names were on the blacklist that major contractors operated until 2008.

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Number of overseas investment buyers in London overestimated, new research suggests

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July 3, 2014

/ International Property News by Property Wire

Overseas investors buying property in London to let out rather than live in only account for an estimated 7% of all greater London residential transactions, new research shows.

Reported high rates of overseas buying are due to high investor activity in the prominent new build sector which accounts for less than 10% of all London transactions,’ according to the report from international real estate adviser Savills.

It says that it is due to London’s cosmopolitan nature, which results in a high proportion of foreign residents and a large number of foreign buyers in the city’s housing markets.

Savills also says that the while in the most reported, prime, second hand markets, international buyers account for 32% of all sales, just like domestic buyers some 88% are buying a home in which to live.

The report points out that the appeal of London’s residential property to international buyers, whether investors or end users, is a reflection of their widespread interest in other types of investment too.

Over the past four decades, London has been promoted from national capital to premier league global city, becoming one of the world’s most successful cities on a range of economic, cultural and social measures and a destination of choice for residential investment, it adds.

Inward migration and natural population growth boosted London’s population from 7.3 million to 8.2 million between 2001 and the 2011 census, with expectations that it will rise by a further million by 2021, the fastest rate of growth ever.

In the report Savills says that rising house prices are an inevitable consequence of rising levels of affluence and high levels of competition for a limited supply of homes. The shortage of homes, rising house prices and consequent exclusion from the market of many aspiring home owners are all highly contentious issues, but it is wrong to hold an influx of buyers from overseas responsible it adds.

International buyers account for a larger share of the central London, prime and new build markets. The report suggests that figures from these specialised markets have often been erroneously applied to the whole market.

The firm’s analysis suggests that international buyers have accounted for around a third, 32%, of the prime London market which accounts for the most expensive 8% of London sales over the past 18 months.

‘Even in these prime markets, domestic buyers outnumber international buyers by over a wide margin,’ said Yolande Barnes, Savills world research director.

‘Our analysis demonstrates quite clearly that these are not buy to leave owners as popular myth suggests and the majority are resident buyers, especially in the second hand market,’ she added.

While most international buyers are buying a main residence, the remainder are almost evenly split between those buying second homes for themselves of their family to use, for example when on business or studying in London, and those who are investing for rental income.

The split for 2013/2014 shows that 68% are UK buyers, 20% are international buying a…

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UK planning minister announces Right to Build scheme

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July 3, 2014

/ International Property News by Property Wire

People in the UK who want to build their own home will be able to turn to their council to make their dream a reality under new measures announced by planning minister Nick Boles

He announced new rights for aspiring self and custom builders which would enable them to ask their council to identify a shovel ready site for their project.

Prospective self and custom builders will be able to register their interest with the local council, who will then be required to offer suitable serviced plots for sale at market value.

Boles said that house building is a key part of the government’s long term economic plan with custom builders poised to play a key role in that.

Research by Ipsos MORI has shown that there are over one million people who are looking to build their own home but the biggest barrier to doing so is finding a suitable plot of land to build on.

It means self build currently accounts for just one in 10 new homes in the UK compared to 60% in Germany, France and Italy and 80% in Austria.

Boles invited councils from across the country to come forward to become vanguard authorities, to get the Right to Build up and running in their area and said that the lessons learned by these areas will then form a crucial part of a consultation later this year, on extending the Right to Build across the country.

‘I believe that government should help anyone who wants to build their own home to find a plot of land to build on. That’s why we want to give people a Right to Build so anyone looking for a shovel ready plot can turn to their local council and expect them to suggest some suitable sites,’ said Boles.

‘Building your own home, with or without the help of a local architect and builder, can be much cheaper than buying a new home and offers people the change to design a place that works for them and their family. Becoming a Right to Build vanguard offers councils a way to help local people get a place to live which is designed and built locally,’ he explained.

The Right to Build is one of a range of measures the government has introduced to help aspiring custom builders. Others include a £150 million investment fund for 10,000 serviced plots that will be shovel ready sites where a developer can be hired to build a home and a prospectus published last week to help developers and community groups apply for funding to prepare the sites.

Boles has previously announced that custom builders will be exempt from paying the community infrastructure levy and introduced a new £30 million Custom Build Homes Fund, which makes available repayable finance for larger multi-unit projects and grant funding for community self builders.

Current planning guidance makes it clear that councils should help custom builders and establish demand in their area.

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More homes coming onto the market in the US, latest data shows

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July 3, 2014

/ International Property News by Property Wire

After plunging throughout 2012 and for much of 2013, and rising only modestly through the beginning of this year, the number of new homes coming onto the market in the US surged in May.

The latest data from real estate firm Zillow shows that inventory of all for sale homes nationwide jumping 11.8% year on year with most gains among homes priced in the middle and top one third of home values.

The number of homes available for sale in the most affordable price bracket, those homes most sought by first time buyers, fell year on year in 28 of the nation's largest metro areas analysed by Zillow.

The total number of homes listed for sale on Zillow in May was up 4.3% month on month and has risen monthly in each of the past three months on a seasonally adjusted basis.

Overall inventory of for sale homes was up year in 78% of the more than 600 metro areas analysed. Large metros where inventory has increased the most include Las Vegas up 51.5% year on year, Washington, DC up 45.7% and Riverside, California up 42.7%.

‘It's good to see overall inventory rising. It's likely that many would be sellers have decided to capitalize on recent home value gains, particularly as the pace slows, and list their home for sale now in order to move into a new home while mortgage interest rates remain low,’ said Zillow chief economist Stan Humphries.

‘But persistent inventory constraints at the low end of the market continue to make it a tough environment for first time and lower income home buyers. Low inventory and high demand can lead to rapid price spikes, which make homes even more difficult to afford for many buyers. Hopefully the inventory gains we're seeing in the middle and upper tiers of the market will begin trickling down to the most affordable homes soon,’ he explained.

In addition to low numbers of affordable homes for sale, first time and lower income home buyers armed with traditional financing are also competing with all cash buyers at the lower end of the market.

Zillow data shows that in 27 of the top 30 metros more than one third of all sales of the lowest priced homes were made with cash. In three of the top 30 metros, Tampa, Detroit and Miami, more than 80% of all sales in the lowest price bracket were cash deals.

National home values in May were up 0.1% from April to a Zillow Home Value Index of $172,300, and have now risen for 28 consecutive months. Year on year, home values rose 5.4% in May, the slowest annual pace of appreciation in more than a year.

For the 12 month period from May 2014 to May 2015, national home values are expected to rise another 2.9% to approximately $177,321, according to the Zillow Home Value Forecast.

National rents fell slightly in May from April, down 0.1% to a Zillow Rent Index of…

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Help to Buy is assisting the right buyers, says new research

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July 3, 2014

/ International Property News by Property Wire

Help to Buy, the UK government’s flagship buying scheme, is assisting the right home buyers with 55% of purchasers coming from the private rented sector, according to a new report.

It is proving particularly popular with people who are currently renting, the latest quarterly market review from Countrywide shows.

The data also shows that the income of the average Help to Buy purchaser moving from privately rented accommodation is £41,000, while 35% of households renting earn less than £30,000.

There has been a particular bias towards lower income renters in London and the South East, where 40% of renters using the scheme to buy their first home earn under £30,000.

Indeed less than 20% of Help to Buy backed purchases were in London and South East, proving that Help to Buy is not fuelling a property bubble as some have suggested.

Help to Buy purchasers who previously lived with their family, account for 30% of those using the scheme, a significant proportion of all users of the Help to Buy scheme. They are typically first time buyers still living at home, unable to access the private rented sector due to the cost of rent, or are unwilling to do so due to a desire to save for a deposit more quickly.

As a consequence, these people tend to be younger than average, earning 16% less than those living in the private rented sector. Half of these purchasers are single person households and this means that housing costs take up a larger proportion of their income. In the majority of cases, these are new households who were saving for a deposit while paying reduced or no rent.

Help to Buy has provided a lifeline to many home owners in parts of Northern England where falling house prices have eroded the equity they hold. For existing home owners in parts of Northern England who bought in 2006 or 2007, Help to Buy has provided a lifeline after falling house prices have reduced the equity of many households, preventing them moving. In the North East, almost 30% of homes purchased through the scheme have been bought by existing home owners.

‘The Help to Buy scheme is enabling a growing number of households to achieve their aspiration of homeownership at a time when the proportion of high loan to value values is historically low,’ said Nigel Stockton, Countrywide Group financial services director.
‘Given that the scheme is funded by the government, it is important that those using it would otherwise find it difficult to buy without assistance. This has almost exclusively been the case with the majority of purchasers coming from the private rented sector or the parental home,’ he explained.

‘As home ownership rates decline, particularly amongst younger age groups, Help to Buy increasingly represents the way many new households are able to get onto the housing ladder. Help to Buy remains an extremely popular policy among aspiring home owners. While the use of the scheme by existing home owners is…

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Balfour Beatty to scale back Engineering Services division

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July 3, 2014

/ The Construction Index UK News

Balfour Beatty is to sell PFI assets to bail out its troubled Engineering Services division and scale back its operations.

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Balfour Beatty launches Parsons Brinckerhoff sale

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July 3, 2014

/ The Construction Index UK News

Balfour Beatty has confirmed that it has formally begun sale proceedings of its professional services division, Parsons Brinckerhoff.

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Property prices up 1.4% month on month in Australian cities

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July 3, 2014

/ International Property News by Property Wire

Prices in Australia’s capital cities increases by 1.4% in June with all cities apart from Adelaide and Darwin recording a rise in values, according to the latest RP Data monthly report.

Research director Tim Lawless pointed out that the strong result has partially reversed last month’s 1.9% fall and takes the quarterly fall to just 0.2%.

The report also shows that over the 2013/2014 financial year the top performing cities for capital gains have been Sydney and Melbourne where home values are up 15.4% and 9.4% t respectively across each city.

The Brisbane housing market, where conditions have generally remained relatively sedate, is now gathering some pace with values up 7% over the past 12 months, the third strongest result of any capital city.

The index results show that the softest performances over the past year have been recorded in Hobart at 2.5%, Canberra at 2.9% and Adelaide also at 2.9%.

Over the current growth cycle, capital city property values are up 15.5% with Sydney recording the most significant capital gain at 23.1% growth since the end of May 2012. Adelaide’s housing market recorded the least significant capital gain over the cycle to date, with home values rising by 5.6%.

Lawless explained that recent volatility in the month to month index reading is likely to be a seasonal factor. ‘The last time we saw a negative quarterly movement in our combined capital city index was May last year. The recent reduction in capital gains is likely a correction from the strong market conditions reported over the first quarter of the year,’ he said.

‘Looking through the monthly movements, the trend in performance is much more important. It shows that the quarterly rate of growth peaked across the Australian housing market in August last year at 4%. Since that time the rate of capital gain has generally trended towards a more sustainable level,’ he pointed out.

‘The slowdown in dwelling value appreciation will be a welcome relief to policy makers and those seeking to buy into the housing market,’ he added.

The data also shows that from a total returns perspective, Sydney once again stood out as having provided the most outstanding performance. Combining the capital gain with the gross rental yield over the year has provided Sydney home owners with a total return of 20.2% over the financial year. Melbourne, Darwin and Brisbane have also recorded a total gross return in excess of 12% over the year.

Across the different price segments of the housing market, the broad middle priced sector of the market is now showing the highest rate of annual change. Values at the most affordable end of the capital city housing markets have moved 8.8% higher over the past year compared with a 10.3% capital gain across the most expensive suburbs and a 10.6% increase across the broad middle 50% of the capital city market.

Looking at rental markets, gross rental returns are currently recorded at 3.9% for capital city houses and…

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Billington boss to bow out

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July 3, 2014

/ The Construction Index UK News

Barnsley-based structural steelwork company Billington is looking for a new CEO after long-serving Steve Fareham announced his intention to retire next year.

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Construction’s fatality rate gets worse

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July 3, 2014

/ The Construction Index UK News

The construction industry’s fatal injury rate deteriorated slightly last year and deaths from long-term asbestos-related disease also increased.

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Tender prices are rising

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July 3, 2014

/ The Construction Index UK News

Tender prices rose by 3% in the fourth quarter of 2013 compared to the previous quarter, and by 6.7% year-on-year, according to the UK construction Tender Price Index compiled by RICS’ Building Cost Information Service (BCIS).

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New chief gets to work at Kier

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July 3, 2014

/ The Construction Index UK News

Haydn Mursell has taken over from Paul Sheffield as chief executive of Kier.

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Construction pipeline is updated

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July 3, 2014

/ The Construction Index UK News

The government has updated its construction pipeline, setting out £116bn of planned public sector projects.

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London Mayor launches new planning guidance

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July 2, 2014

/ International Property News by Property Wire

The Mayor of London, Boris Johnson, has published detailed planning guidance to ensure that future developments enhance the rich character of the city.

With London set to be home to 10 million people by 2030, the Mayor's Character and Context Supplementary Planning Guidance aims to ensure that London can continue to grow sustainably without losing its much loved distinctiveness.

The guidance encourages anyone engaged with the planning system to fully understand the heritage and environment of an area before taking important decisions on its development.

It asks planners to think about how an area has come to be the way it is, the things about it that people who live, work, and visit want to see changed and the economic, social and other forces driving change.

In addition, the document builds on detailed guidance in the London Plan and the Mayor's London View Management Framework that advises on the location of tall buildings and ensures strategic views across the city are protected. It also links in with the Mayor's Opportunity Area Frameworks and the borough's Local Plans which provide clear guidance about the right places in which to locate tall buildings.

By taking all of these factors into account, the Mayor expects that future developments will be more likely to be successful economically as well as aesthetically.

‘Planning for neighbourhoods in a city as dynamic and diverse as London is a tricky business. This guidance aims to ensure that areas do not lose their unique character while allowing developers to continue to bring forward innovative and thought provoking schemes,’ said Johnson.

The Mayor is also now consulting on his draft Social Infrastructure Supplementary Planning Guidance which considers how social infrastructure such as schools and hospitals could be developed and integrated alongside the 49,000 new homes a year that the Mayor believes need to be built to meet the demands of the city's ever increasing population.

Increasingly, London is seeing communities and parents setting up new academies and free schools and GPs working together through clinical commissioning groups to understand and meet local needs.

Johnson believes that against this changing background, the guidance provides a sensible approach that will help planners and non-planners to work together so that social infrastructure can be built where it is most needed.

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UK house prices see growth for fourteenth month in a row

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July 2, 2014

/ International Property News by Property Wire

UK house prices increased by 1% in June and were 11.8% higher than June 2013 meaning that they have now surpassed their 2007 peak, according to the latest data from the Nationwide Building Society.

All regions saw annual price gains in the second quarter of the year but the south of England, and London in particular continues to outperform other parts of the country, the data also shows.

It means that the average price for a home is now £188,903 and prices have now increased for 14 months in a row. In London prices were up by almost 26% in the second quarter of the year compared to the same period in 2013 and the price of a typical property in the city reached £400,000 for the first time.

Scotland was the weakest performing region with prices up 5.4% compared to the second quarter of 2013 while Northern Ireland is the least expensive region. The average price in Scotland reached £141,872 and £117,140 in Northern Ireland.

After London the South East saw the biggest quarterly change with prices up by 4.1% to an average of £230,409, followed by the South West with an increase of 2.6% to £207,420 and then East Anglia with growth of 2.5% taking the typical home price to £188,960.

The North saw a 2.3% quarterly increase to an average of £125,125, the West Midlands 1.9% to an average of £160,383, Wales 1.8% to £145,812, the East Midlands 1.7% to £154,145, the North West 1.3% to £144,851, and Yorkshire and Humberside 0.8% to £142,661.

On an annual basis prices in London have increased by 25.8%, in the South East by 14%, in the South West by 9.8%, in East Anglia 9.5%, in Wales 9.3%, in Northern Ireland by 8.4%, in the East Midlands by 8.3%, the West Midlands 8.2%, the North 8.1%, the North West 7.1%, Yorkshire and Humberside 7% and Scotland 5.4%.

Southern Scotland, which includes Ayrshire and the Borders, was the best performing area, with prices up 14% on the previous year. Fife was the weakest performing area, recording a 3% year on year increase.

In Wales, the west of the southern half of the country, which includes The Vale of Glamorgan, Bridgend and Swansea, was the best performing area, with prices up 12% year on year. North Wales was again the weakest performing area, with more modest growth of 5% over the same period.

In Northern Ireland prices remain around 50% below their 2007 peak. Belfast remains the most expensive area, and was also the strongest performer over the last 12 months, recording a 14% increase. Prices in the South of England were up 17.4% year on year, whilst in the North they rose by 7.7%. As a result, prices in all of the southern regions are now above their 2007 peak, whilst those in the north remain somewhat below.

But the annual pace of growth in London will probably start to slow in the quarters ahead, given the high base for comparison…

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Purchasers' survey shows growth rate picking up again

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July 2, 2014

/ The Construction Index UK News

The monthly survey of construction’s purchasing managers shows a strong rebound in growth momentum in June, with house-building and commercial building accelerating.

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US pending home sales up sharply in May, latest NAR data shows

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July 2, 2014

/ International Property News by Property Wire

Pending home sales in the United States rose sharply in May, with lower mortgage rates and increased inventory accelerating the market, according to the latest data from the National Association of Realtors.

All four regions of the country saw increases in pending sales, with the Northeast and West experiencing the largest gains.

The Pending Home Sales Index, a forward looking indicator based on contract signings, increased 6.1% to 103.9 in May from 97.9 in April, but still remains 5.2% below May 2013 when it was 109.6.

May’s 6.1% increase was the largest month on month gain since April 2010 when first time buyers rushed to sign purchase contracts before a popular tax credit programme ended.

Lawrence Yun, NAR chief economist, expects home sales to continue rising in the second half of the year. ‘Sales should exceed an annual pace of five million homes in some of the upcoming months behind favourable mortgage rates, more inventory and improved job creation,’ he said.

However, second half year sales growth won’t be enough to compensate for the sluggish first quarter and will likely fall below last year’s total,’ he explained.

Despite the positive gains in signed contracts last month, Yun added that affordability and access to credit is still an area of concern for first time buyers, who accounted for only 27% of existing home sales in May and typically carry student loan debt and lower credit scores.

‘The flourishing stock market the last few years has propelled sales in the higher price brackets, while sales for homes under $250,000 are 10% behind last year’s pace. Meanwhile, apartment rents are expected to rise 8 percent cumulatively over the next two years because of tight availability,’ said Yun.

‘Solid income growth and a slight easing in underwriting standards are needed to encourage first time buyer participation, especially as renting becomes less affordable,’ he pointed out.

The PHSI in the Northeast jumped 8.8% to 86.3 in May, and is now 0.2% above a year ago. In the Midwest the index rose 6.3% to 105.4 in May, but is still 6.6% below May 2013.

Pending home sales in the South advanced 4.4% to an index of 117.0 in May, and is 2.9% below a year ago. The index in the West rose 7.6% in May to 95.4, but remains 11.1% below May 2013.

Yun expects existing homes sales to be down 2.8% this year to 4.95 million, compared to 5.1 million sales of existing homes in 2013. The national median existing home price is projected to grow between 5% and 6% this year and in the range of 4% to 5% in 2015.

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Skanska sells Cambridge land bank

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July 2, 2014

/ The Construction Index UK News

Skanska has sold the second plot of its UK residential development land bank to Crest Nicholson for £35m.

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Government support for Ben Ainslie Racing HQ

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July 2, 2014

/ The Construction Index UK News

Construction work has now started in Portsmouth on a new headquarters from which it is hoped the 2017 Americas Cup will be won for Britain.

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Contractor fined for land drainage offences

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July 2, 2014

/ The Construction Index UK News

Civil engineering contractor South West Highways has been fined for failing to get permission before carrying out repairs to a road bridge in north Devon.

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Architects' manifesto includes action on schools

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July 2, 2014

/ The Construction Index UK News

The Royal Institute of British Architects has published its 2015 election manifesto calling for a massive boost to school building, housing developments on green belts and £1.3bn for cycling and walking.

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New consulting chief for Amey

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July 2, 2014

/ The Construction Index UK News

Amey has appointed Dave Spencer as managing director of its consultancy business.

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Pay rates go up this week

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July 2, 2014

/ The Construction Index UK News

Construction workers are being urged to check their pay packets this week to make sure they have the pay rise they are due.

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Housing trust and builders’ merchant strike procurement deal

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July 2, 2014

/ The Construction Index UK News

Builders’ merchant Travis Perkins is setting up a dedicated distribution facility for Manchester’s Trafford Housing Trust under a new four-year procurement partnership.

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Many first time buyers in UK relying on parental help with deposit

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July 2, 2014

/ International Property News by Property Wire

On average first time buyers in the UK receive half of their deposit as a parental contribution with more than two thirds getting it as a gift, new research shows.

It means that the so called Bank of Mum and Dad is continuing to play an important role in the property market with the average amount needed amounting to £17,900.

The study from Santander Mortgages also reveals that 68% of parents who provided money to help their children get on the property ladder will get nothing back in return as it was intended as a gift.

Almost three quarters, 72%, of females were gifted the monies by their parents, in comparison to only 62% of men. Some 29% received the money as the equivalent of an interest free loan while only 3% of parents contributed towards their children’s deposit as an investment.

For those that are yet to buy their first home, the average amount they look to receive from parents is £17,900. With the average first time buyer deposit being just under £25,000 this represents a 71.6% subsidy.

Some 22% estimate that their parents will contribute £20,000 or more while 34% of those who have children yet to buy a home say they will contribute money towards a deposit in order to help them on to the property ladder.

‘Raising a deposit can be a huge challenge and our research shows that many rely on financial help from their parents in order to get a foot onto the property ladder. Buying your first home can be a daunting but there are ways to make it easier and support is available to help first time buyers with upfront costs,’ said Miguel Sard, head of Santander Mortgages.

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Average farm land values in England up almost 3% in second quarter 2014

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July 1, 2014

/ International Property News by Property Wire

The average value of English farm land rose by almost 3% in the second three months of 2014 to £7,517 an acre, according to the latest index report from Knight Frank.

During the past 12 months values have increased on average by 17% and over the past 10 years by 208%, the data also shows.

This compares with 244% for gold, 135% for prime residential property in central London, 52% for the FTSE 100, and just 23% for average UK house prices

The report points out that availability remains limited. So far around 16% fewer acres have been advertised publicly for sale this year, according to the Farmers Weekly Land Tracker Index. Even taking into account the off market 17,800 acre sale of the Co-op portfolio, supply is historically subdued.

At the same time demand continues to be buoyant, particularly from investors. The firm has received a number of enquires over the past few weeks from funds and the representatives of wealthy individuals analysing the market with a view to making an investment in farmland.

‘Potentially there could be more pension funds and institutional buyers in the market. There are some good deals happening off market,’ said Tom Raynham, head of Knight Frank’s Agricultural Investment team.

Investors are becoming more savvy and better advised. ‘Their knowledge of farming systems is growing. They are looking for opportunities where they can increase agricultural productivity and returns, rather than just purchasing land let under long-term agricultural tenancies, which has been the traditional investment target,’ explained Raynham.

James Prewett, head of Regional Farms at Knight Frank, said that farmers are also becoming more active. ‘They took a bit of a pause for breath at the beginning of the year when values rose quite sharply, but now the market seems to have settled into a rhythm and their confidence has returned,’ he pointed out.

‘Farmers are definitely in the mix at over £9,000 an acre for 483 acres of arable land at Banbury, Oxfordshire, that I am selling,’ he said, but added that there are still massive variations around the country.

‘I think values have plateaued in some areas, while there is room for more growth in others.” Overall, the Knight Frank Farmland Index predicts further rises of around 6% over the next 12 months,’ added Prewett.

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UK landlords report a downward trend in voids

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July 1, 2014

/ International Property News by Property Wire

The average void period experienced by UK landlords has continued to fall and is down to 2.7 weeks, according to the latest quarterly survey from specialist lender Paragon Mortgages.

The most recent fall sees the average void level down to what it was in 2012 with high tenant demand credited with keeping the time a rental property is empty between tenancies low.

There was a sharp increase during 2009 and 2010 and the average void period spiked at 3.5 weeks in the second quarter of 2010.

Traditionally, over the course of the 12 year landlord survey, the average void period has been between 2.6 and three weeks. The lowest average reported was 2.5 weeks in the fourth quarter of 2002.

However, the firm explained that what is important here is that from its highest to lowest point there has only been just a week’s difference.

‘What we have seen over the last 12 months is a downward trend in average void periods reported by landlords. This is encouraging as it means properties are being let quicker, which is better for landlords and better for prospective tenants,’ said John Heron, managing director of Paragon Mortgages.

‘With there being just a week’s difference in the highest and lowest void periods recorded this suggests that properties are being rented quickly, and that the letting process is managed well by both landlords and letting agents,’ he explained.

‘As tenant demand is continuing to remain high, it is likely that we may see the average time a property is empty decrease even further in the coming quarters,’ he added.

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Demand strong for prime property in key London areas, but must be priced to sell

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July 1, 2014

/ International Property News by Property Wire

Despite mixed messages on the health of the housing market in London, demand for property in key locations in Notting Hill, Holland Park and Kensington remains strong.

Over the last three months the number of properties sold in these areas increased by 17% over the same period a year ago, according to the latest market intelligence report from agents Crayson.

The amount spent on property in prime central London has risen significantly this year. Buyers have spent an average of £157.5 million per month in our area, 27% higher than at the same point a year ago.

The report also reveals that apartments are outperforming houses. Indeed, sales of apartments have dominated the market so far this year, with the number sold rising 32% compared with the figure at this point a year ago. The opposite is true for houses, with sales so far this year down 21%.

Flats have also outperformed houses in terms of price growth. Flats sold in these areas over the last three months achieved prices per square foot that were 13.6% higher than the same period in 2013. Houses saw average prices increase at a still respectable 10.6%.

However, prices per square foot for homes selling in excess of £5 million have plateaued this year. But they are still achieving values which are 28% higher than they were three years ago.

The strongest growth in values continues to be for homes at the lower end of the market, under £1 million, and those priced between £2 million and £5 million, with average values within these price bands having risen by 12.7% and 12.9% respectively.

Within the Royal Borough of Kensington some 24% of properties currently on the market have been reduced in price since they were first marketed. The highest proportion of price reductions is seen in the price bracket over £10 million with 31% now reduced. This compares with just 21% of properties priced at £2 million to £5 million.

The report also says that 25% of the most prolific agents within these area, that is those with more than five properties listed for sale, have reduced the prices of more than a third of their available stock.

‘Put simply, vendors who achieve the best price for their property do so by bringing their home to market at the right price, creating early interest amongst buyers,’ said managing director Nick Crayson.

‘Properties that are launched at an unrealistically high price are missing out on crucial selling opportunities in the early stages of marketing. The average amount of time before a property is first reduced is currently 70 days,’ he explained.

‘Over valuing by agents is increasingly common within our market, something Crayson do not advocate. Potential vendors must ensure that they launch their properties onto the market at the right price, to attract early interest and increase the chance of achieving the best value,’ he added.

The report also points out that outside prime central London, the surrounding boroughs have continued to post significant growth. The…

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RICS inaugurates first female president

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July 1, 2014

/ The Construction Index UK News

The Royal Institution of Chartered Surveyors’ first ever female president gives her inaugural address at the governing council meeting in London today.

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Think tank to investigate construction apprenticeships

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July 1, 2014

/ The Construction Index UK News

Think-tank Demos is calling for evidence from across the construction industry for research it is undertaking into construction apprenticeships.

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