There are signs of uncertainty in central London’s prime property market but the outlook for residential prices is still good.

All the recent reports have shown that the strong price growth seen in this sector is slowing and the latest from Strutt & Parker indicates that in the second quarter of the number of transactions in the sub £2 million market was down by 17.2% on the same quarter last year.

The £5 million plus market fared much better, with a 18.6% increase in transactions whilst the £2 million to £5 million bracket stayed relatively stable with a fall of just 0.5%.

‘The drop in values and volumes in the sub £2 million market has come as a surprise. The prime central London market is volatile and those buying around the £2 million mark are becoming increasingly nervous of the election in 10 months’ time,’ said Stephanie McMahon, head of research at Strutt & Parker.

‘Having said this, the whispers of mansion tax and the on-going geopolitical issues seem to have had very little effect on the sales market in the £2 million to £5 million category,’ she added.

Kensington and Notting Hill performed the strongest with 9.1% growth, and the firm said this is thanks to a balanced supply and demand market. Knightsbridge and Belgravia's performance was the poorest, with a 26.3% decrease in transactions.

The lettings market performed better. There were 2,862 property lets agreed in during the second quarter which was 3.6% above the quarterly average for the past five years. Achieved rents by price band also remained positive above the £1,500 per week threshold.

‘Our London lettings network of offices has bucked the trend, reporting a year on year transactional increase of 61%. We foresee a continued supply shortage of rental properties as tenant demand increases,’ said Zoe Rose, head of London Lettings.

Strutt & Parker and its retained economic advisors Volterra are predicting 4.5% growth for residential house prices in prime central London in 2014 compared to 8% for the UK as a whole.

‘The prime central London market is particularly difficult to forecast because it is made up of a wide range of locations and price ranges. For example, transaction levels in the £2 million to £5 million price bracket have remained high in the second quarter of 2014, although there is some evidence that volumes have dropped in the £10 million plus category,’ explained McMahon.

‘The economic foundations would certainly suggest that prices may continue to rise at the same rates over the next few years, but the biggest perceived uncertainty surrounding the prime central London market over 2014/2015 will continue to be the looming election and the possibility of a mansion tax. We therefore expect that price growth during the remainder of 2014, and even more so in 2015, will be sensitive to prevailing political press and expectations,’ she added.

According to Andrew Scott, head of London Residential, the effects of the election are clearly being felt across the market. ‘As…

The majority of lenders in the UK expect interest rates to rise early in 2015 and predict that existing home owners will be more affected than first time buyers.

But opinion is divided. The research from the Intermediary Mortgage Lenders Association (IMLA) shows 36% of mortgage brokers expect a rise in the Bank of England base rate before the year is out. Just 17% of lenders anticipating a rise this year.

The consensus among lenders is that the Bank of England will raise its base rate from 0.5% in the first half of 2015, for the first time since March 2009 with 72% taking this view including 44% who expect to see a rise in the first three months of 2015.

There is a greater split among brokers, with 44% predicting the rise will come in the first half of 2015 while 20% expect the 0.5% base rate will survive past the middle of next year.

IMLA’s research also reveals diverging opinions across the mortgage industry about which group of borrowers will be most affected when the interest rate rise finally occurs.

Some 56% of believe that it will be existing home owners who will be the most affected demographic, while 28% think it will be first time buyers. Just 11% believe recent first time buyers will feel the biggest impact.

By comparison brokers expect recent first time buyers and existing home owners will share the brunt of the interest rate rise, ahead of aspiring first time buyers. Both lenders and brokers agree that buy to let owners and landlords will be least affected by the eventual base rate rise.

‘The prospect of a rise in interest rates has been looming on the horizon for some time, but now it appears an increase is hovering closely overhead. The majority view across the mortgage industry is that a rise in 2015 still looks to be the most likely outcome. But it won’t be long before the consensus is challenged within the Monetary Policy Committee, and speculation over an early rise has clearly registered with a significant number of brokers,’ said Peter Williams, Executive Director for IMLA.

‘The fact that lenders feel recent first time buyers will be spared the impact of rising rates is an encouraging sign that stress tests implemented under the Mortgage Market Review are doing their job and will ensure that borrowers are financially prepared for higher interest payments,’ he explained.

‘Brokers will have a vital role to play in the months ahead as existing homeowners review their current deals and look to ensure they are on the most favourable rates for their personal circumstances,’ he pointed out.

‘It’s important to remember that the first rate rise in more than five, or potentially even six years will seem like a momentous occasion when it arrives, but the size of increase is likely to be very modest, certainly to begin with. The Bank is firmly…

Farm land prices in the UK increased by 3% in the first half of 2014 to £9,594 an acre, according to the latest survey from the Royal Institution of Chartered Surveyors (RICS).

It means that farm land prices are now 12% higher than a year ago and costs more than four times what it did when RICS first began recording rural land market data in 1994 when land cost £2,028 per acre.

The index report says that price growth in the last decade has been driven principally by farmers.

The breakdown shows that Wales saw the largest price increase over the last 12 months with growth of 19% and the average price per acre now stands at £8,625, higher than anywhere else across the rest of the UK and nearly 7% greater than the national average.

Despite some respondents in Scotland reporting sales of bare land in excess of £10,000, the average price of farm land in Scotland now stands at around 44% below the national average at £4,500 per acre.

‘While interest from potential buyers has now seen substantial rises since the end of 2008, the imbalance between supply and demand appears to show no sign of waning. In the face of growing concerns around housing shortages and burgeoning populations, investors increasingly are seeing land as an economic safe haven,’ said Simon Rubinsohn, RICS chief economist.

The report also shows over the last 12 months 32% more chartered surveyors reported rises, rather than falls in demand and looking ahead to the next 12 months 44% of respondents expect prices to rise, rather than fall.

It reveals that growth in demand for farm land continues to outstrip that of supply and this is pushing up prices and supporting expectations for further increases over the course of the next 12 months.

Demand remains very strong on the commercial side, particularly from farmers keen to expand production onto neighbouring plots.

Rubinsohn said that significantly there has been a revival in residential or ‘lifestyle’ demand, which only began to start growing at the end of 2013 having been more or less flat since 2008. This coincides with the broader turnaround in the UK housing market.

Rents are also rising, but at a slower pace than land prices. Yields for let land remain close to their all-time low of 1.7%. According to surveyors, average annual arable land rents under the Agricultural Tenancies Act now stand at £162 per acre, having increased by 3.6% during the first half of the year and 6.1% over the year. On the same basis, pasture land rents are £104, having risen by 4.2%.

‘Notwithstanding respondents’ concerns over the potential impact of an increase in interest rates, reforms to CAP and worries over future farm profitability, prices are expected to increase further right across the country both for commercial and residential use,’ Rubinsohn concluded.

Year on year property price growth in the United States fell from 9% to 8.4% in July, raising concerns about the market’s ability to maintain long term growth.

The data from the latest Clear Capital index also shows that distressed sales fell to 18%, a stark reduction since its peak of 40.8% in March of 2011.

The key issues facing the market include whether home price gains continue to fall past the historical range of 3% to 5% as discounted deals dry up or whether they stabilize to sustain moderate long term growth, according to the report.

Clear Capital's forecast through 2015 shows national home prices will rise just 1.5%, indicating prices may not have the strength to stabilize within this historical range of growth.

While the West of the country continues to dominate regional gains with eight of the top 15 major metro markets, the MSAs within the region are not immune to the strong moderating patterns unfolding across the country, the data shows.

The report points out that each market has its own unique demand drivers, yet similarities exist. Some Western markets like Phoenix and Riverside are seeing a strong pull back from their investor fuelled recovery, while others, like San Jose and Seattle, are experiencing moderation alongside strong local economic foundations.

The West is projected to see price declines of 0.8% through 2015, while the historically volatile Midwest could be home to the recovery's next group of heroes, with leading forecasted growth of 3.4%.

Missing from July's Top 15 list is Phoenix which has suffered from the effects of waning investor demand. In July, Phoenix yearly price growth softened to 10.4%, while distressed saturation fell to 13.5%. This is a significant reversal from more than 60% distressed saturation in March 2011, and a cumulative recovery of 62.3% home price appreciation.

The report says that following these notable gains, Phoenix is nearly in line with 2004 price levels, off by just 5%, suggesting Phoenix is where it needs to be. But there are doubts about whether it can stay there through 2015. Forecasts show Phoenix should see 2.6% through 2015, a sobering, yet realistic, rate of stable growth for the market.

Even the current recovery leader, Riverside, is going down the price path of Phoenix. Over the past two years, prices in the MSA have appreciated by a total of 53.2%, while distressed saturation has fallen from 68% to just 15.5%. Riverside's quarterly and annual growth led the top 50 metro markets in July at 2.1% and 18.3%, respectively.

Despite these seemingly strong growth trends, yearly growth in Riverside has fallen 6.6% points from 25% at the start of 2014, and quarterly growth has been cut by more than half over the same timeframe. Forecasts through 2015 show expected losses for the metro of 1.1%, indicating Riverside could see continued moderation turn to losses in the near future.

‘The force of moderation in July trends raises questions around the market's ability to sustain gains through 2015. Relatively speaking, a…

Hyder has turned its back on the takeover offer of Arcadis and entered the embrace of Japanese consulting engineer Nippon Koei instead.

Nippon Koei has offered a £268.1m deal, which at 680p per share is 30p per share better than the deal Hyder previously agreed with Arcadis.

On 31 July the Hyder boad announced that it was unanimously recommending its shareholders to accept a £256.2m takeover offer from Arcadis. (See previous report here.) Today they tell us that actually they prefer the Japanese takeover offer, which includes a promise to be left structurally unaltered.

Hyder chief executive Ivor Catto said: "The cash offer from Nippon Koei announced today represents a 30p premium to Arcadis’ offer announced on 31 July 2014 and accordingly the Hyder board is now recommending the cash offer from Nippon Koei. The Hyder board considers that Nippon Koei's cash offer substantially recognises Hyder's growth prospects, and provides certainty, in cash, to our shareholders today. The merged group should also provide further opportunities for our highly valued employees and clients."

Nippon Koei is listed on the Tokyo Stock Exchange with a market capitalisation of approximately £260m.  For the year ended 31 March 2013, it had revenues of approximately £420m and EBITDA of £34m. This makes it a similar size to Hyder, which had £256m net revenues last year and made an adjusted operating profit of £19m. 

Nippon Koei president Noriaki Hirose said: "This merger represents a truly transformational step for Nippon Koei, fulfilling founder Yutaka Kubota's long term strategic vision of broadening the client base and geographic footprint of Nippon Koei, whilst continuing to focus on our core sectors of transportation, utilities and property.  Both Nippon Koei and Hyder operate in the same part of the design and engineering consulting value chain. In short, our chairman (Yoshihiko Tsonoda) and I could not envisage a better business for us to merge with.”

He continued: “I regret that the confidential nature of our interest has meant that we have not yet had the opportunity to meet many of the employees of Hyder and begin planning our combined journey together. We recognise the value of collaboration and so I look forward to addressing this as soon as possible. A key element of our due diligence has been understanding the depth of Hyder's engineering capability and the skills of its people, and we have been most impressed with what we have learned.

“Like Hyder, Nippon Koei is a longstanding company with a rich heritage in engineering. We are conservatively run, with the same focus on clients and quality. We rarely make acquisitions but, having studied Hyder carefully, we are clear how important and strategic this merger is for us.

“Given the success of both organisations, we intend to make minimal changes to the existing operating structures of either organisation and are excited about the prospect of capturing cross selling and other revenue generating opportunities as a combined business."

Arcadis responded to the news by saying that it was “considering its position and will make an announcement in due course”.

Kier has signed a framework agreement with construction consultant Driver Group.

Driver will help Kier minimise the development and build-up of disputes on its projects and provide quantity surveying and programming services both in the UK and overseas.

Driver Group CEO Dave Webster said: "I am particularly delighted for our teams across the UK to be working with a world class construction company such as Kier helping with project delivery in the challenging construction market place."

Balfour Beatty has recruited Peverel managing director Mark Hoyland to rescue its troubled M&E building services division.

Problems at Balfour Beatty Engineering Services (BBES) are behind recent profit warnings at Balfour Beatty that led to the removal of group chief executive Andrew McNaughton after just a year in post.

In April Balfour Beatty brought in Network Rail project director Uma Shanker to take on the new role of chief operating officer for BBES. Now it has found a new chief executive to lead the subsidiary, which had a turnover of £260m last year and has 1,300 employees.

Mark Hoyland was previously managing director of scandal-hit property management company Peverel Property Services, which was the subject of an Office of Fair Trading investigation into price fixing last year.

Balfour Beatty says that he “led the business through a period of transformational change to drive outstanding customer service and improve performance”.

Before that he was chief executive of City West Homes for five years and had periods with Rok, Ballast and Wimpey Group.

Mr Hoyland will be a member of the executive leadership team, reporting to Balfour Beatty Construction Services UK chief executive Nicholas Pollard, who has been also acting as BBES managing director on an interim basis since May.

Mr Pollard said: “Mark’s extensive commercial and operational experience will ensure our smaller, refocused building services M & E engineering business will capitalise on the ongoing recovery in the sector. Mark will lead the business to build long-term collaborative customer relationships, deliver operational efficiency and secure a commercial focus that improves profitability and the order book, winning sustainable business opportunities.”

House sales in England and Wales have recovered to the highest level for seven years and average prices are up 9.9%, according to the latest index report to be published.

The average price has now reached £270,636 but the growth is being dominated by London and the South East, the LSL house price index shows.

UK wide the annual price growth is 9.9% but this drops to 4.6% when London and the South East are excluded from the calculation. The average price in London is not £560,386.

Month on month prices are up 0.6% and prices have stabilised across seven regions with the market being described as ‘steady’.

The index data also shows that there were 90,000 sales in July, up 10% from the previous month and 21% year on year and the report says the housing market has recovered from a slowdown caused by the introduction of new mortgage rules in April.

First time buyers and buy to let landlords are helping the flow of activity in the UK housing market, according to David Newnes, director of Reeds Rains and Your Move estate agents, owned by LSL Property Services.

‘As the common property choice of a new buyer or investor, flats have seen the largest increase in sales during the second quarter of this year, rising by 36% compared to the second quarter of 2013,’ he said.

‘As the market emerges from the chrysalis of regulatory change, sales have climbed 10% in the past month. But chequered supply across the country has created considerable regional variation in sales. London and the South East have seen the slowest growth in house sales between the second quarters of 2013 and 2014,’ he explained.

He added that in these areas, limited availability of property is impacting sales. Elsewhere, lower prices and the stimulus of Help to Buy are aiding activity. The biggest boost in sales during the second quarter of 2014 was in the North West and East Midlands, increasing by a 32% on the same period last year.

With the average price paid for a home in London reaching £560,386 in June, following a £10,850 monthly rise, in some locations the temporary waning of growth has halted. Indeed the report shows that 24 London boroughs have set new peak prices and in Kensington and Chelsea average house prices are on track to surpass the £2million mark.

‘However, a dampening of sales activity and more supply starting to come to the market will help control house price inflation in London,’ said Newnes.

He also pointed out that housing policy should not be led astray by what is happening in prime central London. ‘If London and the South East are removed from the equation, the annual change in average houses prices drops by 5.3% to 4.6%.
Average prices in Northamptonshire, Bournemouth, and Wiltshire rose in June as the housing recovery starts to spread. The tendrils of recovery may be branching out from the centre, but they haven’t yet unfurled to all corners of the…

Building services contractor NG Bailey saw a further steep fall in turnover last year but has survived the recession through sheer hard work, its chief executive says.

Announcing its financial results for the year to 28 February 2014, NG Bailey posted sales of £380m, down 10% from £422m the previous year and from £459m in fiscal 2012.

The company said that this was a deliberate strategy to avoid bidding for contracts that held out the prospect of little or no profit margin.

Profit before tax was not revealed and accounts for the year have yet to be filed at Companies House. However, the company said that it made an underlying operating profit of £2.1m, suggesting that the company may once again have made a pre-tax loss. For the previous year it lost £10.1m, due to a couple of problems contracts and a restructuring.

However, chief executive David Hurcomb was happy with the company’s performance last year. “This is a strong set of results achieved against the backdrop of the worst recession seen in construction, one which has been particularly severe for specialist contractors such as NG Bailey,” he said.

“Our Facilities Services, IT Services and Rail divisions performed particularly well, which helped balance the overall result as our other divisions, operating in the more traditional building construction sectors, were hit harder by the financial downturn. 

“We have worked very hard to achieve this result. Our balance sheet remains strong, net assets are up against the previous year, to £84m – almost all of which is in cash – and we have no borrowings.”

Chairman Kevin Whiteman added:  “A very positive set of results, which further proves NG Bailey’s strength in the marketplace as a leader in its field. It also proves that our transformational diversification strategy is the right one, allowing us to better balance the business in the areas of traditional building construction, infrastructure and services.” 

The order book stands at approximately £600m.

Craig Evans has been promoted to general manager of the UK Asbestos Training Association (UKATA).

He was previously the association’s financial controller and more recently acting general manager.

Chairman Eddie Strong said that the 25-year-old had “already proved himself as an ambitious young man who has the talent and business experience to fulfil this post”, adding “he is undoubtedly the right person to lead the association into this exciting new era”.

UKATA

Mr Strong, said: “UKATA is a growing organisation; we now have over 160 members with more applications pending. UKATA is entering a new period of development and we felt that the time was right to appoint a General Manager to oversee our expanding operations. Craig has already proved himself as an ambitious young man who has the talent and business experience to fulfil this post; he is undoubtedly the right person to lead the Association into this exciting new era.”

Mr Strong added: “Craig’s promotion is a real statement for UKATA. He has some brilliant ideas and better still he is proving himself to be a man of action. His youth, energy and high standards have already made a big impact and the board of directors have every confidence that he will lead UKATA to a very bright future. With Craig at the helm, UKATA will continue to grow and provide outstanding training to more contractors, ultimately protecting more people from the dangers of asbestos.”

Median house prices have increased by 4.2% to £187,500 across England and Wales year on year but in Scotland they are up 8% to £135,000 in the same period, the latest published data shows.

With a number of potential headwinds slowing the market, including the upcoming general election, the Mortgage Market Review, talk of interest rate changes and the Scottish Referendum, the figures are rather surprising, especially where Scotland is concerned, according to the report from Strutt & Parker.

‘Interestingly and somewhat counter intuitively, Scotland is not showing a slow down through the data, with values up 29%, and volumes up 22% on the second quarter of last year,’ said Stephanie McMahon, head of research at Strutt & Parker.

‘Normally markets slow down due to uncertainty and on that basis we would have expected Scotland to pick up in the latter half of the year but at the moment it seems to be bucking the trend,’ she added.

Greater London remained the strongest performing region with prices up 14.9% to a median house price of £365,304 whilst the North East saw the weakest performance with a decline of 2.3% to a median price of £120,250.

As part of the report, Strutt & Parker also analysed the behaviour profiles of its buyers and sellers who sold or purchased homes over £2 million outside of London. In prime central London, nearly 50% of buyers move from somewhere else in London. In the UK that figure declines to nearly 14% but when looking at the £2 million plus market outside of London, the figure jumps back up to over 20%.

‘Last year has shown a distinct increase in international buyers, including expats as well as foreign nationals who own houses in London and have decided to settle with stronger roots in the UK,’ said James Mackenzie, partner in the country homes department at Strutt & Parker.

‘They have stretched out to the Cotswolds and Hampshire specifically. We are starting to see a significant increase in enquiries from London based British purchasers looking to move out to the country and I am sure it will only be a matter of time before the balance returns to normal,’ he pointed out.

Strutt & Parker and its retained economic advisors Volterra are predicting 8% growth for residential house prices across the UK in 2014.

‘Improved economic foundations would certainly suggest that prices will continue to rise over the next few years, while the biggest perceived uncertainty surrounding the property markets over 2014 to 2015 will continue to be the looming election,’ said McMahon.

‘This uncertainty will be most significant around the £2 million price bracket due to the potential change of government and associated possibility of mansion tax. We therefore expect that prices growth during the remainder of 2014, and even more so in 2015, will be sensitive to prevailing political press and expectations,’ she added.

According to Michael Fiddes, head of regional residential agency at Strutt & Parker, the election does not appear to be affecting…

The Competition and Markets Authority (CMA) has issued an update on its market study into the provision of residential property management services in England and Wales.

The study, which was launched in March 2014 by the CMA's predecessor the Office of Fair Trading (OFT), is looking at whether the market is working well for leaseholders and whether there is effective competition in the sector.

The CMA has identified a number of causes for concern about how the market works. It says that some leaseholders appear to suffer from a lack of control over aspects of property management, and may experience excessive or unnecessary charging for services arranged by property managers, poor service quality, insufficient transparency, poor communication and ineffective redress.

At the same time, other leaseholders are satisfied with their property management services and the CMA has found evidence to suggest that the existing checks and balances in the market can work well.

In light of this, the CMA has set out some views on possible remedial action to improve the performance of the market and secure better outcomes for leaseholders, on which it is seeking views.

‘Whilst the market works well for some leaseholders, our emerging findings suggest that improvements may be needed in a number of areas,’ said Rachel Merelie, CMA senior director of delivery.

‘Given the broad range of issues we are considering, we have decided to seek views at this stage on a range of possible remedies to the problems we have identified. This will help us to develop recommendations that are both effective and proportionate,’ she added.

Building services contractor Spie has acquired Scotshield Fire & Security.

Spie said that the deal would help it develop expertise in intelligent buildings.

Established in Scotland in 1998 by Tony Kane, Scotshield supplies fire detection, security alarms, access control and closed circuit television systems. In the year to May 2014 it had sales revenue of £23m. As well as installation projects it also has 8,000 sites with service and maintenance contracts.

Spie UK chief executive James Thoden van Velzen said: “This acquisition is an excellent opportunity for both companies to develop their businesses and reach new customer bases across the UK. With limited client overlap, there are numerous opportunities for cross-selling our services. Scotshield is already well established in the northern part of the UK and has demonstrated consistent growth there. By bringing it into the Spie portfolio, we are developing our Scottish business, taking on new technologies and a lead position in the local market. Similarly, Scotshield’s range of solutions has a strong synergy with our own and is therefore a strong fit for existing clients across the rest of the UK, many of whom will be interested in the new services we have to offer.”

Strategy & development director Renaud Digoin Danzin added: “Globally, there is a growing trend for converged security and business management systems (BMS). Scotshield’s expertise will allow Spie UK to further develop its services in the ‘Smart City’ strategic segment, with a particular focus on security and energy management. With this fifth acquisition in three years, we continue to broaden and balance our portfolio of engineering-led services and our client base.”

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Steelwork contractor Thomson Steel and crane hire firm Sarens have lifted in a new footbridge over the River Lea in east London

Main contractor for the job is John Sisk & Son, working for Ballymore Properties.

The Leamouth North Bridge spans the River Lea between Canning Town station and Ballymore’s new London Island development in the Docklands. The bridge will connect the development site, currently in the construction phase by Ballymore, to Canning Town and provide access for pedestrians and cyclists to pass between them.

The bridge weighs 160 tonnes and was lifted into place on 5^th August by a 1200-tonne capacity lattice boom crawler crane. Because the bridge is asymmetrical, the positioning of the lifting points was critical to ensure that the bridge was correctly trimmed during lifting.    

The 80-metre span steel bridge was fabricated in Carlow by Thompsons. Sisk’s design consultant is O’Connor Sutton Cronin & Associates.

The concept design, by structural engineers Davies Maguire & Whitby, allows the bridge to open vertically to let boats under it. The next phase of the works involves installation of the hydraulics and control systems.

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Rising property values, booming tourist numbers and ever improving air access is making Turkey more attractive to foreign real estate investors, it is claimed.

Turkey's attraction to foreign property buyers has gained momentum during the first half of 2014 with a promising second half ahead, according to real estate agency Spot Blue International Property.

Sales to foreigners in Turkey rose 60% year on year during the first six months of 2014, totalling 8,507 property purchases, according to figures from the Turkish Statistical Institute.

For the same period, Istanbul alone recorded a 150% increase in foreign buyers, putting it ahead of the tourist province of Antalya, home to the popular resorts of Alanya, Belek and Kalkan.

Meanwhile, the average price of a new Turkish home was 12.05% higher in June compared to June 2013. It was one of the strongest months for the Turkish property market with 600 foreign purchases in Istanbul, followed by Antalya at 586 and Aydin at 108.

The Turkish Ministry of Economy confirmed that foreigners bought $1.26 billion worth of Turkish real estate in the first four months of the year, which was $893million more than in the same period in 2013.

‘Istanbul has certainly been a winner for us this year. Interest has been strong from Middle Eastern buyers in particular, with most buying one or more buy to lets in the mushrooming suburbs of the city, such as Beylikduzu and Bahcesehir,’ said Julian Walker, director at Spot Blue International Property.

Foreign visitors to Turkey increased by 3.24% year on year in the first three months of 2014, reaching 4.35 million, according to data from the Ministry of Tourism and Culture. The second quarter recorded even greater growth, up 6.8% year on year, peaking at 10.9 million. In terms of revenue, tourism generated a record high of $8.9 billion in the second quarter of 2014, a 7.9% increase over the same period last year.

Turkey welcomed more than 35 million foreign visitors in 2013, becoming the sixth most popular travel destination in the world, but is forecast to receive 43 million tourists in 2014, with the sector generating revenue of $36 billion.
‘Increased tourists not only stimulate the property market in terms of sales but they also are encouraging for foreign owners who let their property to holidaymakers,’ explained Walker.

This year has seen Turkey's global air links and air traffic continue to grow, with interest in the Middle East driving much of this. In June, a record 16 million passengers passed Turkish airports, while in May, Istanbul's Ataturk Airport broke a European record for the highest number of landings with 1,267, in any one day.

At Istanbul's second airport, Sabiha Gökçen, Turkey's Pegasus Airlines has make progress in 2014 to becoming the fourth largest low cost carrier in Europe. Results from the first quarter of this year showed the airline carried over four million annual passengers, growth of over 25%.

Meanwhile, in June, Turkey's flagship national carrier, Turkish Airlines, launched its 257th destination, cementing its…

Laing O’Rourke’s annual report for the year to 31st March 2014 shows a steady performance, modestly impacted by a weakened Australian dollar.

Total revenue declined 0.3% to £3.57bn while a reduction in margins in the European business brought gross margin pre-exceptional items down to 8.5%, from 8.7% the previous year.

 “These figures were adversely impacted by foreign exchange movements,” said finance director Callum Tuckett. “On a like-for-like basis, applying foreign exchange rates from the previous 2012/13 trading period, managed revenue increased over 5%.”

After paying £10.0m of tax, retained profit was £41.9m, up slightly from £41.1m after tax profit in 2012/13.

The tax payment equates to an effective tax rate for 2013/14 of 19.3%, down from the 25.4% average of the past four years and below the UK corporate tax rate of 23% due to the mix of profits generated in different jurisdictions, Mr Tuckett said.

Laing O'Rourke, registered in Cyprus and with its parent company based in the British Virgin Islands, is sensitive to accusations relating to its tax arrangements after being embroiled in a row with a member of parliament last year. (See previous report here.)

A decline in the order book from £8.2bn to £7.4bn was attributed half to the weaker Australian dollar, and half to a focus on higher margin contracts rather than chasing turnover.

Profits were broadly evenly split between Laing O'Rourke’s European operations and its Australian ones. Pre-exceptional EBIT for Europe Hub was £47.1m and Australia Hub £45.0m. This came from £2.6bn managed revenue in Europe (which in this context includes Canada, Saudi Arabia and the United Arab Emirates) and £1.8bn managed revenue in Australia.

Group chief executive Anna Stewart said: “We maintained our management discipline, and deepened relationships with customers who value the certainty of our integrated business model. As a result we delivered another profitable performance and made good progress against the key elements of our strategy to offer innovative solutions that benefit our business and the wider industry.

"We continue to be restless in our pursuit of excellence. No one party has all the answers and we thrive best when given the opportunity to collaborate in wider teams and share ideas and develop solutions together."

Chairman Ray O'Rourke added: "I am pleased to report another profitable year in which we have sustained revenues and operating margin, outperformed our industry in cash generation and achieved our targets for new business. This is a creditable performance and I am proud of the commitment and hard work of all my colleagues around the group.”

Nearly one in 10 home owners in the UK say they will sell up if interest rates rise and a third say they will potentially struggle, new research has found.

Around one in 10 mortgage customers have already fallen behind with current payments and a third would cut back on all non-essential spending to make ends meet, according to the survey from mortgage broker Ocean Finance.

With the Governor of the Bank of England Mark Carney recently suggesting that interest rates could start to rise over the next few months, almost half of mortgage borrowers, 46%, admit they would either definitely or potentially struggle if the interest rate on their home loan went up by 3%.

A 3% rise in interest rates would potentially mean borrowers with repayment mortgages paying an additional £150 a month for every £100,000 owed. UK home owners were asked how they would cope making the increased payments.

More than a third, 38%, said they would potentially struggle with the increase and would have to look at ways to save money and 7.9% revealed they would definitely have difficulties and would immediately seek to sell their property.

Just over one in three, 35%, of mortgage customers noted they would adjust their current budget so they could make sure they were still able to afford the payments. Only one in five claimed they would comfortably manage if the interest rate on their mortgage increased by 3%.

With the Bank of England base rate at a historic low of 0.5%, there are home owners who are already struggling to make their repayments. Asked to describe their ability to make their current mortgage payments, some 9.8% of home owners said they have had difficulty keeping up and have fallen behind. A further 19% claimed they are up to date but do struggle to pay their mortgage.

Should their mortgage rates increase by 3%, some home owners admitted they would have to take drastic measures to be able to maintain their payments with 37% saying they would cut back on all non-essential spending, and 33% saying they would reduce all their non-priority spending as well as some essential spending.

Meanwhile, 11% of mortgage holders said they would work more hours so that they could afford their increased repayments and still maintain their current lifestyle. Only 22% said they did not think they would have to make any cut backs.

‘Clearly it is likely to take a while for rates to rise by 3%. But if they do go up by that much over the next couple of years it’s worrying to hear that nearly half of mortgage borrowers are concerned about how they would keep up with the repayments, especially when one in 10 are already behind with their payments,’ said Ian Williams, spokesman for Ocean Finance.

‘If home owners are currently on a variable rate or tracker mortgage and are concerned about how rate increases might affect them, they could seek out professional advice to find out if switching…

Twenty councils have been selected for the second phase of a programme to release surplus government land and property.

The One Public Estate programme uses land and property released by government to boost economic growth and regeneration. The Cabinet Office and the Local Government Association (LGA) run the programme together to encourage sharing services, reducing running costs and generating capital receipts.

The 20 councils taking part in the second phase of the One Public Estate programme are:

• Manchester City, Trafford, Bury, Oldham, Salford and Stockport
• Norfolk and Suffolk in partnership with Forest Heath and St. Edmondsbury (West Suffolk)
• Liverpool
• Birmingham
• Barnet
• Croydon
• Plymouth
• Southampton
• Kent
• York
• Cornwall
• Bradford

They join the initial 12 pilot councils that took part in the first phase of the programme in 2013.

• Bristol
• Cheshire West and Chester
• Essex
• Hampshire
• Hull
• Leeds
• Nottingham
• Portsmouth
• Sheffield
• Surrey
• Warrington
• Worcestershire

The programme is already projected to save £21m in running costs and raise £88m in capital receipts.

Councillor Peter Fleming, chair of the LGA's improvement and innovation board, said: “The One Public Estate programme demonstrates the successes which can be achieved when councils and government get together to release land for growth and service improvements, which in turn leads to housing, job creation and economic growth. The first round has been extremely successful and this second round will continue to build on the good work achieved so far. Local authorities have been in the driving seat and the achievements made during the first wave represent a tiny proportion of what we believe One Public Estate can achieve.”

Cabinet Office minister Francis Maude said: “As part of this government’s long-term economic plan we have got out of 1,250 buildings since the last general election generating hundreds of millions in savings and creating more opportunities for housing and jobs.

“This programme shows what can be done when central and local government work together, and it’s great to see more and more local authorities entering the programme and demonstrating a readiness to save money for taxpayers, create new jobs and deliver better services by using their assets more efficiently.”

Residential property prices in Australia’s capital cities increased by 1.1% in the second quarter of 2014 with Sydney and Melbourne continuing to drive a two tier housing market in the country.

It means that the aggregate capital price gain across all capital cities since the beginning of the year is 5% but price growth varies considerably depending on location, according to the latest RP Data index.

Sydney saw prices increase by 2%, Canberra by 2.1% and Melbourne by 1.8% which offset falls in other capital cities.
Darwin saw mild growth of 0.8% while price fell by 2.6% in Adelaide, 1.2% in Hobart, 0.4% in Brisbane and 0.1% in Perth.

Broadly, capital city dwelling values have trended higher since June 2012 with the combined capitals index has recording a cumulative gain of 17.4%. The data shows that Sydney has seen the most growth, up almost 25% during this period, while Darwin saw growth of 20.4% and Melbourne 18.5%.

The lowest rate of capital gain over the current cycle was in Adelaide where values are just 5.5% higher, and in Canberra where values have recorded a 7.9% increase.

According to Tim Lawless, RP Data research director, despite the most recent set of data showing a rise, the growth trend has eased from the peak conditions recorded last year. Over the past six months, capital city dwelling values moved 3.7% higher compared with the peak rate of growth of 7.2% which was recorded over the six months to November last year.

Lawless said that over a similar time frame the growth in mortgage demand has started to ease, suggesting buyer demand may be being dampened by rising affordability hurdles and low rental yields in the largest cities.

Regional markets continued to languish and recorded a 0.7% fall over the June quarter and a year on year growth rate which is slightly higher than inflation at 3.5%.

‘Regional markets are of course diverse and range from agricultural regions which are largely driven by weather conditions and export factors, mining and resource-centric areas where the downturn in commodity prices and fewer major infrastructure projects are generally causing weak housing market conditions, and lifestyle markets where buyer demand is bouncing back and values are generally rising,’ Lawless explained.

Examination of the housing market across broad price segments reveals that the most expensive quarter of the combined capital city housing market has shown the highest capital gains over the past year. Dwelling values across the most expensive quarter of the capital city market are up 10.8% over the past 12 months compared with a 7.9% gain across the most affordable quarter of the market, and a 10.1% capital gain across the broad middle of the market.

Rental yields were down over the month, with capital gains continuing to outpace rental growth. The typical gross rental yield on a capital city dwelling fell to 3.9% in July from 4% in June, with Melbourne yields the lowest of any capital city at 3.4% gross, followed by Sydney at 3.9%…

A strengthening UK economy and more buoyant employment market has translated to a pick up in the prime lettings market in London in the first half of 2014.

The prime central London (PCL) market saw growth of 2.9% in the first half of 2014 compared to falls of 1.9% over 2013, according to the latest report from real estate firm Savills.

The firm says that while high stock levels remain an issue in some areas, the return of the family market resulted in rents increasing 3.4% for houses compared to 0.9% for flats over the quarter.

International tenants are now more dominant in the PCL market than those from the UK. In 2013 and the first half of 2014 they accounted for 75% of tenants, with Western Europeans the largest sub group. For all tenants the largest employment sector in PCL is financial and insurance services which accounts for roughly half of market demand.

However, there is evidence that the tenant profile is widening and becoming less dependent on this sector alone. The proportion of those working in the financial and insurance sector has fallen from 55% in 2011 to 47% during the first half of this year.

‘While this may temper rental growth for PCL property over the short term, strong employment growth in the professional, media and communications sectors is likely to underpin demand in this market going forward,’ said Lucian Cook, director of residential research at Savills.

The prime outer London markets that includes popular areas such as Islington, Clapham and Wimbledon, have benefited over the past three months from the pickup in demand for family housing.

The prime north west markets of Hampstead and St John’s Wood saw the strongest quarterly growth across prime London, with average rents increasing 2.2% as low stock levels of family houses has intensified competition.

Prime south west London also saw demand for large family housing increase and average rents for five plus bedroom properties rose 1.6% over the quarter. However, in this area demand from singles and sharers unable to buy in the highly competitive London housing market resulted in higher rental growth for flats. Smaller properties have seen stronger annual growth than houses, with rents for one bedroom properties increasing 2.2%.

Over the past six months the prime east of City markets of Canary Wharf and Wapping have seen the strongest rental growth across prime London, with average rents increasing 3.1%. ‘Canary Wharf has been the driver of this growth due to the continued strong demand from corporate, students and sharers and a current lack of stock on the market. With an average pound per square foot of £27 compared to £40 across all prime London, these markets are attractive for the relative value they provide,’ explained Cook.

The report also shows that across the commuter zone, average rents in prime cities and towns rose 1.2% annually compared to 0.6% for rural properties. Similar to the prime sales market, the trend for urban living remains more popular than rural living…

The number of foreclosed homes in the United States on the market fell by 35% in June, the 17th month in a row when levels have fallen by more than 20%, the latest data shows.

The CoreLogic data also shows that year on year inventory declines have been recorded for 32 months in a row and the amount of completed foreclosures is also falling, down 20.4% for a year ago.

It means that in June there were approximately 648,000 homes in foreclosure, just 1.7% of all homes with a mortgage.
At its peak, the seriously delinquent inventory increased 88% year on year in April 2008, but it was down 23.3% year on year in June 2014.

Furthermore, pre-foreclosure filings decreased by 12.5% from 83,500 to 73,100 per month nationally in June 2014 from a year ago. As of June, pre-foreclosure filings had fallen 68% from their peak of 229,000 in March 2009. By comparison, monthly filings averaged 21,000 from 2003 to 2005 prior to the financial crisis.

The five states with the largest year on year drop in the foreclosure inventory were Arizona with a fall of 53.6%, Utah down 51.5%, Minnesota down 49.5%, Georgia down 46.9% and Nevada down 46.1%.

All 50 states and the District of Columbia posted declines in the foreclosure inventory from a year ago, with 45 states showing decreases of more than 25%.

CoreLogic said that of particular interest this month is the improvement in the top three states as ranked by foreclosure rates. Among the three states, Florida was hit the hardest, peaking in June 2011 at 12.5% and falling to a rate of 5% in June 2014.

However, the improvements in New York and New Jersey have been much smaller. Over the 12 months ending in June 2014, the foreclosure rate in New York and New Jersey fell by only 0.6% compared to a 4.2% decline in Florida.

Recently data has been suggesting that in the UK property market price growth has been slowing but the latest index shows a month on month rise of 1.4%.

The figures from the Halifax House Price Index also show a quarterly rise of 3.6% and an annual rise of 10.2%, taking the average price of a home to £186,322.

Looking at previous figures, the data showed a fall in June but this has now been countered by the 1.4% rise in July. Since last December there have been four monthly price increases and four price falls.

Stephen Noakes, mortgages director at the Halifax, pointed out that monthly figures can be volatile and the quarterly data gives a more accurate picture of what the trends are.

‘While supply remains low, housing demand continues to be supported by a continuing economic recovery, growth in employment, improving consumer confidence and low mortgage rates. However, earnings growth is still lagging behind consumer price inflation,’ he said.

Although home sales have edged down by 6% since a recent peak in February, they are close to 103,000. Home sales during the April to June quarter were 21% higher than in the same three months last year, according to seasonally adjusted figures from HMRC.

New buyer enquires continue to ease, a trend that started in November last year, according to data from the Royal Institution of Chartered Surveyors (RICS).

On the other hand, the latest Halifax Housing Market Confidence Tracker indicates that sentiment towards selling is growing. Over half, 57%, of those surveyed believe the next 12 months will be a good time to sell, compared to only 32% who feel it will be a bad time. This is the highest score of this measure since the survey’s inception in April 2011.

Disregarding asbestos hazards during a demolition job has led to fines being handed down in Teesside.

Hartlepool-based Baxketh Ltd, a metal-recycling business, agreed to remove steelwork from the premises of UK Tankcleaning Services Ltd in New Road, Billingham. Baxketh worked without payment but got to keep the metal to sell for scrap.

But the steel included pipes lagged in asbestos fibres, which were removed with no attention to the special measures required.

Teesside magistrates were told yesterday that inspectors from the Health & Safety Executive (HSE) visited the site on 22nd February 2013 following a complaint from a worker at neighbouring premises. HSE inspectors saw Baxketh Ltd directors Michael Almond Senior and Michael Almond Junior on the site, with a significant amount of pipework and damaged insulation scattered on the ground. Almond Jnr was operating a mechanical excavator with a grab to move steelwork from the ground into a skip.

A prohibition notice was served on Baxketh Ltd to prevent further work. An improvement notice was also served on UK Tankcleaning Services Ltd that required it to carry out an asbestos survey and develop a system to ensure the results were shared with those likely to disturb any asbestos.

Tests carried out by HSE later confirmed that the insulation debris did contain asbestos.

Baxketh Ltd, of Burn Road, Hartlepool, was fined a total of £12,000 and ordered to pay £3,804.20 in costs after pleading guilty to breaching Regulations 5(a) and 16 of the Control of Asbestos Regulations 2012.

UK Tankcleaning Services Ltd, of Lodge Lane, Doncaster, was fined £10,000 with £2,243.40 costs after pleading guilty to breaching Regulation 4 of the same legislation.

Michael Joseph Almond Snr, 73, of Westbourne Road, Hartlepool was fined £1,000 and ordered to pay £204.80 in costs after pleading guilty to breaching Regulation 5(a) of the same legislation.

Michael Vincent Almond Jnr, 47, of Plymouth Walk, Hartlepool was fined £650 after pleading guilty to breaching Regulation 16 of the same legislation.

HSE Inspector Julian Nettleton said after the case: “Asbestos is the single greatest cause of work-related deaths in the UK and there is a lot of industry in the Teesside area that still uses, or occupies premises that have old chemical processing plant dating back to the ’60s. Almost all of it was lagged with asbestos in those days.

“Site operators and contractors working at these sites should always assume that old pipework is lagged with asbestos unless there is reliable evidence that says otherwise. Those involved in the construction and refurbishment industry also have a clear duty to ensure that work is managed so as to prevent the spread of asbestos.

“This incident occurred because UK Tankcleaning Services Ltd’s asbestos management systems did not include anything relating to informing others of the presence of asbestos on the site. Baxketh failed to carry out an asbestos assessment before starting work and did not take any measures to prevent the spread of asbestos fibres. This put the directors themselves, their own employee and others working nearby at risk of exposure to asbestos fibres and the court agreed that both companies were equally culpable for the offences.”

A strong first half of the year saw construction group Interserve deliver substantial growth in revenue and profitability.

Revenue was up nearly 29% for the six months to 30 June 2014, reaching £1,374.8m (2013 H1: £1,068.2m).

Excluding exceptional items, headline pre-tax profit was up 36% to £50.2m (2013 H1: £36.8m).

Factoring in amortisation and exceptional items, notably transaction costs on the £250m acquisition of Initial Facilities in March, reported pre-tax profit for the period was £28.3m, down from £30.7m for the same period last year.

Even without the acquisition of Initial Facilities, Interserve saw organic growth of 9.1% in revenue and 15.4% in operating profit during the first six months.

With £2bn of new contracts secured in the period, the order book has swollen to £7.5bn, up from £6.4bn at the start of the year.

Chief executive Adrian Ringrose said: "It has been a very good first half of the year for Interserve. We have delivered strong organic growth, achieved through robust performances from our UK Support Services and Construction businesses and excellent results in Equipment Services.

"Market conditions in International Construction and Support Services continue to be highly competitive, although we are now starting to see signs of improving demand.

"Our strong organic growth was complemented by the performance of our acquisitions. Initial Facilities traded in line with our expectations during the period and its integration is progressing smoothly.”

With the acquisition of Initial Facilities, Interserve’s support services division generated £867.2m in revenues, compared to £619.8m in the first half of 2013.

The construction division also performed strongly, with an 11.6% rise in UK revenue to £432.6m, plus a further £99.4m from international work. Organic revenue growth was 4.9% on the same period in 2013, boosted to 11.6% including Paragon, the specialist fit-out and refurbishment business acquired in May 2013. Contribution to total operating profit increased by 8.1% to £8.0m.  Margins remained stable at 1.9% and future workload rose to £1.4bn. (FY 2013: £1.0bn).

Over a quarter of young British people would prefer to buy a house if they were given £20,000, rather than put the cash towards their wedding, a new survey shows.

On average couples saving to buy their first home cut their wedding budget by over £5,000 and 28% of those aged between 18 and 34 would spend a £20,000 gift from their parents on a deposit for a house, according to research by HSBC.

With the cost of a wedding now averaging £20,000, the findings reveal that only 1% of young adults would choose to shell out the entire sum on their nuptials.

With such gifts the reserve of a lucky few, most young people are pondering how to split their savings between a deposit for a new home and a dream wedding. Nearly half, 47%, would look to cut the cost of their wedding in favour of putting it towards a house deposit, while 26% would ask guests for cash instead of a traditional wedding gift to put towards a house.

‘With the average deposit for first time buyers now £23,500, it appears that couples are choosing to be pragmatic when it comes to tackling the difficult decision of whether to shell out on a big wedding or buy a home,’ Peter Dockar, head of mortgages at HSBC.

‘Clearly, it appears that being savvy with the pennies and giving more thought to home buying is becoming a priority,’ he added.

The research also reveals that those looking to cut the cost of their big day in order to boost their deposit savings will do so to the tune of £5,443 on average.

The most popular ways of cutting costs are to reduce guest numbers (45%), choose a cheaper reception venue (29%) and reduce the cost of the honeymoon (26%).

Some 60% with aspirations of home ownership admit that they cannot afford a deposit for a first home without financial help from their family

Wircon, a German renewable energy company, has teamed up with Sino-American solar power specialist SPI to target the UK solar photovoltaic market.

SPI and Wircon plan to set up a joint venture company to develop solar energy projects in the UK, with an initial proposed target of 55 MW. Selected projects will be procured and developed with the intent for the joint venture company to own and operate certain assets and sell others to investors.

SPI’s stated strategy is to grow its presence in key markets through strategic alliances with strong local partners.

SPI chairman Xiaofeng Peng said: “Wircon has amassed a wealth of solar project development experience in Europe over the years, and this agreement provides a foundation for SPI to grow our business in the critically important UK market. The UK will be one of our key geographic focus markets in the coming years, and this announcement marks a new milestone for SPI internationally.”

SPI Solar describes itself as a global turnkey developer and EPC contractor for large-scale solar energy facilities. Based in the USA, it is majority owned by China’s LDK Solar, which manufactures multicrystalline solar wafers that are used in solar cells.

Mark Hogan, president of Wirsol Energy Ltd, a subsidiary of Wircon, added: “We plan to capitalise on selected opportunities with attractive return potential in the UK market, particularly given the DECC’s proposal to close the RO (Renewables Obligation) scheme to new solar PV capacity above 5 MW from 1st April 2015. We will also invest in sourcing and building a substantial and sustainable pipeline looking into 2015 and beyond.”

Contractors reached a major milestone at Manchester Victoria station last weekend as the largest steel section of the new roof was installed.

Morgan Sindall is main contractor on a £44m transformation of the Grade II listed building. A key component is the new roof, which allows for future expansion of the station.

The work is part of Network Rail’s wider £1bn+ Northern Hub and North West Electrification Programme.

Steelwork subcontractor Severfield began lifting into place the first of 15 giant curved ribs that will support the roof in May.

On Saturday 2nd August the ninth and largest steel rib was lifted in to place using a Liebherr LR 1750 lattice boom crawler crane, supplied by Weldex.

Measuring nearly 100 metres long and weighing nearly 70 tonnes, the beam was lowered into place to form the corner section of the station’s new roof.

Later this month, work will begin to install the roof’s ETFE (ethylene tetrafluoroethylene) panels, a lighter and cheaper alternative to glass. The material, which is used at Manchester Piccadilly station, Birmingham New Street station and the Eden Project in Cornwall, will allow natural light into the station.

All curved steelworks are expected to be in place by mid September. In total, Severfield is supplying and erecting some 1,900 tonnes of structural steel, with the project's scope also involving the construction of a mezzanine floor to link the station to the Phones4U Arena as well as lifts and a feature staircase.

The remaining roof sections will be installed over the next few months with the whole station redevelopment scheduled for completion in early 2015.

Severfield chief executive Ian Lawson said: "The eye catching canopy roof will be the latest of our steel structures to become an iconic urban landmark, following hard on the heels of the Philharmonie de Paris and the Clyde Gateway Smartbridge.”

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Monthly rents in the UK, excluding London, have increased by 4% annually to £689 with six tenants are chasing every available property across the country, the highest since 2011, the latest rental index shows

Overall demand for rental properties across the UK has increased by 15% annually, while the supply of rental homes has dropped 17%, the Sequence report also shows.

Meanwhile, in London rents have reached a four year high, increasing 10% annually to £1,515 and tenant demand has been rising at more than nine times the rate of supply.

According to Stephen Nation, head of lettings for Sequence, which includes Barnard Marcus, William H Brown and Fox & Sons, the rental market in London is a hive of activity, with close to seven tenants chasing every available property.
‘Demand to rent in the capital is rising at more than nine times the rate of supply reaching a four year high of £1,515 per month, up 10% annually,’ he pointed out.

The report also shows that applications for buy to let mortgages have reached the highest level in 2014, so far increasing by 14% annually in June and 12% since May. Nation explained that buy to let mortgages are not subject to scrutiny under the new mortgage market rules and change to pension annuities has also encouraged more investors to look to property for their pension pot as house prices and rents continue to rise.

Nationally, excluding London, the number of viewings is up 6% annually and 2% since May, the highest number of viewings in one month since November 2011.

However, new agreed tenancies are flat on the month but up 17% annually, just off their September 2013 peak. The flat monthly growth means that the ratio of viewings to new tenancies has marginally increased to 7.0/1 from May, but annually it has dropped from 7.7/1. Nation said that this suggests that competition in the market is hotting up and when tenants view their ideal property they are moving more quickly to secure it.

London viewings have increased by 25% annually and by 2% on the month in June. New agreed tenancies are up 28% annually but are flat on the month. This has resulted in a slight increase in the ratio from 12.7/1 in May to 12.9/1 in June.
‘Across the country it is clear that the rental market is very active this year, which goes to show how a healthy rental market works independently of the sales market,’ added Nation.

More than half of the UK’s specialist construction contractors are now seeing their workload rising, according to a new survey, while nearly three-quarters are confident of growth ahead.

The latest state of trade survey by the National Specialist Contractors Council (NSCC) found that 57% of specialist firms saw their orders increase in the second quarter of 2014, compared to 27% a year ago.

The difference between respondents reporting an increase in orders and those reporting a decrease – the balance – reached its highest level since 2000.

Some 59% of specialist contractors said they expect workload to increase during the third quarter and a record high of 72% expect to see an increase over the next 12 months.

84% of respondents reported that they are now working at or above 75% capacity with 43% above 90% capacity. This is leading to difficulties for some firms with 64% experiencing increased supplier prices and 19% reporting they are unable to bid for work due to skills shortages – which is well above the five-year average of 6%.

There was a slight improvement in payment practices this quarter with 16% of specialist contractors getting paid in an average of less than 30 days. This is the highest result ever recorded by the survey.

In another first for the survey, the number of respondents waiting more than 60 days for payment – 14% – was lower than the number receiving payment within 30 days.

More European style family apartments should be built in Ireland to help tackle the nation’s lack of affordable housing, according to a new report from chartered surveyors.

The Society of Chartered Surveyors Ireland has also called for a reduction of VAT on new home building at a time when there is concern about rising house prices and the low level of house building currently being undertaken.

The SCA has published a strategy that is says will ensure there is an adequate supply of houses in urban areas and in Dublin in particular.

The proposals also suggest an exemption on property tax for people trading down, the establishment of a builders' finance fund, and the introduction of a vacant site levy on vacant sites with residential development potential.

The society said the builders' finance fund would help smaller builders and would speed up housing developments of between 15 and 250 units that have slowed down or stalled.

The society also said that if future apartments were designed for family living it would reduce pressure on the supply of traditional three and four bedroom homes.

The Society, which is the professional body for the property and construction sector, said it is concerned about a lack of new homes available at a time when house prices are rising, particularly in Dublin.

The latest house price figures from the Central Statistics Office show that house prices in Dublin are 24% higher than a year ago and the Society says this is simply not sustainable.

Only 8,301 new houses were built in Ireland last year while the Housing Agency has pointed to a need for 80,000 units over the next five years, or approximately 16,000 per annum with half of those required in Dublin.

Chairman of the Residential Group of the SCSI, Simon Stokes, pointed out that new houses cannot be supplied on tap and that the lead in time through construction and to completion generally takes a minimum of two years.

‘Our strategy document focuses on practical steps which can accelerate the delivery of new homes. There is a lack of development finance for builders but the government could address this by establishing a Builders Finance Fund. In the UK a BFF fund of €660 million has been established to help smaller builders and to speed up housing developments of between 15 and 250 units which have slowed down or stalled,’ said Stokes.

‘A reduction in the VAT rate for the hospitality sector worked extremely well here in recent years, boosting the tourism sector and helping to create 15,000 jobs. We believe a reduction in the current 13.5% VAT on new homes to 5% for a period of two years could have a similarly positive impact on house building and job creation,’ he explained.

‘The need to fund infrastructure in advance of a development being completed is a significant barrier to unlocking supply and we believe the creation of a Revolving Infrastructure Fund could address this issue. RIF’s are not grants or subsidies but…

Almost half a billion pounds is being allocated to build thousands of new affordable homes in London, mayor Boris Johnson has announced.

Some £404 million has been allocated under the Mayor's ambitious plans to increase house building, which also include funding for the London Housing Bank and Housing Zones as part of an overall £1.25 billion package to deliver 45,000 affordable homes by 2018.

It will result in almost half of London's boroughs running their own development programme with funding from City Hall and 11 housing associations running large scale construction programmes of over 500 homes each.

These latest allocations will unlock a total investment of £4.23 billion into house building in the capital. Of the 54 providers receiving funding, Notting Hill Housing Trust have won the largest allocation with £59.3 million to deliver 2,250 homes.

Overall some 15 boroughs in all corners of the capital are also benefiting with Waltham Forest receiving £9.7 million to deliver 387 homes, while in Lambeth 303 homes will be delivered with an investment of £10.9 million. For the first time the Greater London Authority is also making an allocation to Grainger Trust, a significant private landlord active since 1912, which has been allocated £5.6 million to deliver 195 homes.

In addition, the Mayor is taking forward five bids for a portion of a further £85 million to establish an innovative revolving fund that could see up to 5,000 homes built over a longer period by 'recycling' investment. The revolving fund bids, including one from the Big Issue Foundation and another from Mill Group, are part of the Mayor's drive to attract wider sources of investment to support house building and develop longer term funding packages with individual providers.

‘The only way to address the huge demand for housing and tackle the 30 year back log of under supply is to build more homes. We've worked closely with expert housing providers to ensure this funding will deliver much needed low cost homes across the capital,’ said Johnson.

‘These latest funds, together with innovative measures to unlock land and development being pioneered by City Hall, will produce thousands more good quality affordable homes for Londoners to rent and buy. We will continue to work with the government, developers and investors to drive forward and deliver the thousands of homes needed in the capital,’ he added.

The Mayor is on course to deliver more affordable completions this financial year than at any other point since 1980 as part of his pledge to build 100,000 affordable homes over two terms, with 78,000 completed so far. Over this investment period, over 4,000 housing schemes will have been built with support from City Hall to deliver more affordable housing for Londoners.

Since taking on almost 700 hectares of surplus public land in 2012, the Mayor has already moved 87% of it into development. There is capacity for thousands more homes on strategic public land across the capital, ripe for development, and the Mayor is lobbying the government for…

The average time it takes to sell a property in Britain has reduced to 88 days, some 16 days or 15.38% faster compared to the same time last year, new data shows.

It is the fastest selling time recorded since 2007, according to the research from residential property group Move with Us.

It shows that properties in Greater London were selling the fastest in the second quarter of 2014 with an average of just 43 days. This was followed by the South East and East Anglia where the selling times were the fastest in five years, taking an average of 59 and 68 days respectively.

At the other end of the spectrum, properties were slowest to sell in the North East where the average selling time reached 138 days in the second quarter of 2014. However, this was still 50 days or 26.6% quicker in a yearly comparison and the second biggest change outside of Greater London since 2007.

‘The market has gained a spring in its step thanks to increased confidence and more readily available funding bringing more buyers to the market,’ said Robin King, director at Move with Us.

‘Faster selling times have now spread outside Greater London and the South East where competition has always been relatively strong compared to areas such as the East and West Midlands where the market has taken longer to recover,’ he explained.

He pointed out that the average selling time is now almost back to the pre-crash levels of 2007. ‘Due to faster timescales, buyers should do all they can to get ahead of the competition and make sure they secure their dream home,’ he added.

The firm advises buyers to get financially and legally prepared when they first start looking to buy. ‘This will help to make sure they don’t miss out on their chosen home as they will stand out as a serious buyer and it will have the added benefit of working to reduce timescales,’ said King.

A breakdown of the figures show that after Greater London and the South East the region with the fastest selling time is East Anglia with 68 days followed by the South West at 68, the East Midlands with 87 and the West Midlands at 89.

Average selling time in Scotland is 106 days, in Yorkshire and Humber 110 days, in the North West 114 days, Wales 129 days and the North East bottom at 138 days.