The residential property market in Spain is set to bottom out next year and see a 2% rise in prices in 2016, according to ratings agency Standard & Poor’s.

It is well documented that the fall in prices has been slowing in recent months and the agency is predicting that prices will fall overall by 2% this year compared with 4.6% in 2013.

Property prices in Spain have fallen around 30% since the economic downturn hit the country’s real estate markets in 2008.

S&P says that the positive outlook for the property market is down to a faster than expected recovery of the Spanish economy and a subsequent quicker fall in unemployment.

According to the Spanish Central Bank the country's economy grew by 0.5% in the second quarter of 2014, the fastest rate in six years, and the latest job figures show that 192,000 people had joined the country's workforce in the 12 months to the end of June.

Experts say there has been a change in trends in the Spanish property market in the last 12 months with the arrival of British and US property funds who are taking advantage of the offers in the Spanish property market.

But the market is unlikely to recover everywhere at the same pace. It is predicted that properties on the coast, including areas popular with second home owners, will see prices rise first.

However, according to S&P the long term recovery of the property market could be kept on a leash by the high number of properties on the market in Spain and the country’s population decline could also put a brake on the long awaited recovery.

S&P said in January that Spain's housing market was overvalued by somewhere in the region of 12% to 20%.
According to Mark Stucklin of Spanish Property Insight, Standard & Poor’s is a bit more pessimistic than other agencies, who believe a recovery may begin as early as 2015.

Several reports in recent weeks have spotlighted the slowdown in the price declines, prompting different analysts to predict the bottom of the market may be nearer.

Building maintenance workers employed by Mears on a Brighton & Hove City Council are heading towards a dispute, their union has warned.

The GMB union says that Mears is threatening to change terms and conditions of employment and to withdraw from an agreement for the union to represent members.

The workers were transferred under TUPE legislation from the council to Mears on the outsourced contract for home improvements and maintenance. The Transfer of Undertakings (Protection of Employment) Regulations 2006 (or TUPE) legislation protects terms and conditions of employment and the agreement for the union to represent members. The contract is worth £12m a year to Mears and covers 12,500 homes.

Mears wants the workers to adopt new contract terms but GMB members are refusing.

GMB branch secretary Mark Turner said: “GMB members didn't ask for or want this potential dispute but neither will we shy from doing what's right to protect the terms and conditions of our members.

“The current agreement was put in place when staff TUPE’d to Mears from the council. This was done to ensure that all transferring employees didn't find themselves disadvantaged moving to a profit driven organisation.

“Mears have consistently failed to abide both by the content and spirit of the agreement from the start and have through this and other actions clearly indicated that they don't have the inclination or will to work with unions on any occasion.”

GMB organiser Gary Palmer said “Local managers failure to not only comply with the current agreement, but to instead look to bully their way to changes as an alternative to working with us instead, is not only unacceptable but has, as joint unions, left us potentially with one choice in reacting strongly if they don't remove the threats.

“We will of course sit and discuss the matter with Mears. However, unfortunately, because we no longer trust local management we would expect commitment in writing from them that they will adhere to existing agreements before we do so.

“Going forward I feel it really is time that the council look to not only cancel the housing repair contract with Mears but to look to take the provision back in house, only then perhaps staff would be respected and treated fairly with their terms and conditions protected."

A new match-making service has been launched to help people wanting to develop their own house find a suitable builder.

The initiative is the result of the Federation of Master Builders (FMB) teaming up with the National Custom & Self Build Association (NaCSBA).

Self-builders can now find an FMB member firm through NaCSBA’s online resource, the self-build portal.

The FMB’s ‘Find a Self-Build Contractor’ service is free to use and draws on a database of over 1,500 local contractors.

FMB chief executive Brian Berry said: “Interest in self-build solutions is growing stronger every day and the government is now putting in place policies which should help more people to realise the vision of building their own home. As this happens, self-builders will need a pool of capable and experienced contractors and a trusted means of finding the right one. That’s why the FMB has created this service and we’re very pleased to have been able to team up with NaCSBA to deliver this through the self-build portal. This is the product of the building industry and self-build representatives working together to facilitate the growth of self and custom build, which will improve the choice available to customers in the new homes market.”

NaCSBA chairman Michael Holmes added: “Around half of all self-builds in the UK are carried out by main contractors on behalf of a private client. This service is the first of its kind to enable self-builders to get in touch with those contractors who can offer them the specialist service they require. It should save self-builders time and effort, is more likely to result in a better 'match' and, of course, it is a great way for FMB members to find the right clients.”

An inquest into the death of the founder of Gloucester-based contractor Markey Construction has ruled that asbestos was to blame.

Hugh Brendan Markey died in hospital on 12^th November 2014, aged 78. An inquest last week determined that he died as a result of exposure to asbestos early in his building career, reports Stroud News & Journal.

Mr Markey began as a self-employed builder in 1963 and built up a business that today, under the management of his sons Paul and Tony, has more than 200 employees.

The inquest heard that Mr Markey had seen a specialist surgeon in 2010 with breathing difficulties. He later suffered a stroke.

County coroner Katy Skerrett said: “It is more likely than not that asbestos exposure was the significant factor causing him to pass.”

A more robust private rented sector needs to be created in Scotland and more land made available for building new homes, according to a new report from the independent Scottish Housing Commission.

Made up of a cross section of housing industry experts and led by the Royal Institution of Chartered Surveyors (RICS) the commission has made a series of recommendations across all property tenures.

In particular it calls for a renewed emphasis on establishing a sufficient quantity and quality of land for housing, including the creation of new communities across Scotland aimed at addressing potential crises in Scotland’s housing market.

The report says that the imbalance that exists between supply and demand for housing remains an on-going problem in today’s, and potentially tomorrow’s, Scottish housing market.

It makes 15 recommendations and identifies three key issues for Scotland’s housing future, namely: housing land supply, new housing growth and the emerging importance of the private rented sector.

‘A substantial increase in land supply for housing would assist development partners in their business preparation, reduce land costs and impact positively on the affordability of housing. In addition, scaling up production of new house building across all tenures is in our view an essential aspect in a sustainable housing solution for Scotland,’ the commission report points out.

‘By promoting the creation of up to eight major new communities, either as new towns, regenerating existing communities or an expansion of existing plans, could make major in-roads in addressing Scotland’s acute housing need in the decade that lies ahead. At the same time this would give a continued shot in the arm to the Scottish economy, by creating new jobs and supporting existing economies,’ it adds.

The report also suggests that a greater level of attention toward the private rented sector could help alleviate pressure on the market. According to the latest RICS Residential Market Survey, a net balance of 25% of chartered surveyors reported a rise in tenant demand within the private rented sector, with respondents reporting growth in demand through 2014.

‘An effective, regulated private rental market is vital for future housing in Scotland. Significant investment in a private rented growth plan for Scotland is required to provide security for the growing number of families and individuals depend on privately rented properties,’ said commission chairman Tom Barclay.

The report further recommends that the Scottish government put in place a Change Fund to support the social housing sector. ‘The social housing sector has the potential to play a major role in delivering smarter and better housing outcomes in Scotland. However, in terms of finance, evidence from lenders suggests that the risk rating of the housing association sector in Scotland has increased as a result of welfare and pension reforms, as well as a reduction in capital subsidies,’ it explains.

‘The fund would facilitate potential partnerships, both constitutional and non-constitutional, helping shape new business models, evaluate transfers of stock between organisations, and, in essence, help provide a stimulus to give greater vitality to the sector,’ it…

The UK, excluding London, has seen new buyer registrations rise 21% annually, while new property instructions are up by just 2%, according to new research.

At the same time the property market is described as buoyant with prices up 1% on last month and 8% annually to £175,728, says the report from Sequence which owns over 300 estate agent branches.

But the London market is slowing. In London new instructions are up 8% on the month and 19% annually but new buyer registrations are down 14% on the month.

There are 11 new buyers for every new property in the capital, a drop from 14 last month. The data also shows that London house prices are flat on the month, but up 21% annually to £457,833.

Overall mortgage applications seem to have bounced back following the new MMR regulations which were introduced in April and have increased by 13% on the month.

‘Demand for properties across the UK remains robust with new buyer registrations up over 10 times the rate of new instructions which are up 2%,’ said David Plumtree, chief executive officer of Sequence.

He pointed out that there are now over six buyers for every property coming onto the market, a two year high for June but in London there has been a slight cooling in demand. ‘This has led to an adjustment in pricing, with prices remaining flat on the month as vendors look to be more flexible in their views on sale price. There is still a great deal of activity in the market, with the number of viewings and offers up annually by 7% and 17% respectively,’ he explained.

‘This activity is translating into sales, which are also up 10% annually, so while there is a slight shift in the balance of supply and demand, the number of new properties on the market remains low and we still have close to 11 new buyers competing for every new instruction,’ he added.

He also pointed out that despite mortgage applications weathering the MMR regulations figures are still 5% below last year, although the appetite to buy across the UK remains very strong.

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…

Strong output growth was sustained across the UK construction sector during July but delivery times are lengthening and subcontractors are getting harder to find.

Although the pace of expansion moderated slightly from the four-month high recorded in June, growth remains strong. The year-on-year jump in house-building output was the highest seen since November 2013.

The seasonally adjusted Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) registered 62.4 in July, down slightly from 62.6 in June but above the neutral 50.0 mark for the 15th successive month. The score remains one of the highest seen since the summer of 2007. Anecdotal evidence widely cited resurgent demand for construction projects, especially in the housing sector.

Civil engineering activity also expanded at a sharper pace in July, but commercial construction increased at a slower rate in July than had been seen in June.

Higher levels of construction output were supported by a further steep improvement in new business intakes during July. New orders have now increased in every month since May 2013. Survey respondents linked the latest expansion to favourable domestic economic conditions and greater confidence among clients.

The rate of job creation across the construction sector was the fastest since the survey began in April 1997. Anecdotal evidence attributed rising payrolls numbers to increased workloads and ongoing efforts to boost capacity. In some cases, survey respondents noted that staffing levels had been increased in response to concerns about subcontractor availability. The latest survey indicated a reduction in subcontractor availability for the 13th month running, while rates charged by subcontractors increased at a near-survey record pace.

Construction companies indicated another steep increase in purchasing activity during July, thereby extending the current period of expansion to 14 months. Strong demand for construction materials in turn placed additional pressure on suppliers during July, as highlighted by a steep lengthening of vendors’ delivery times. Survey respondents widely commented on low stocks and capacity shortages at suppliers. Meanwhile, average cost burdens increased sharply in July, with the pace of input price inflation easing only slightly from June’s six-month high.

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Markit senior economist Tim Moore, the author of the Markit/CIPS Construction PMI, said: “July’s figures suggest the UK construction sector is enjoying its strongest cyclical upswing since the global financial crisis, while a new record rise in employment highlights that construction firms are increasingly confident about the sustainability of the upturn.

“All three core categories of construction activity saw historically steep improvements in output levels through July, unsurprisingly led by a resurgent house building sector.

“Overall the survey adds to the view that construction companies have performed impressively so far this summer, which raises the likelihood that the sands of time could wash away the construction weakness seen in the preliminary second quarter GDP release.

“Looking ahead, a pressing concern for construction companies is the availability of materials and suitably skilled labour to support the recent growth streak. Cuts to supplier capacity have ushered in the worst period of input delivery delays since the survey began in 1997, while this summer has also been notable for construction firms reporting near-record increases in rates commanded for subcontracted work.”

David Noble, chief executive of the Chartered Institute of Purchasing & Supply (CIPS), which sponsors the survey, said: “The house-building sector is racing ahead this quarter with the fastest growth in construction of homes for over a decade. The industry as a whole continued its impressive growth, dipping slightly from last month’s high. The boom in house-building also encouraged the fastest acceleration in employment the index has ever seen over its 17 year history. The commercial and civil engineering sectors also pulled their weight with continued growth, to deliver one of the fastest overall increases in output since 2007.

“One concern however, is the strain on supply chains that could become a roadblock to sustained growth in the future. Construction firms reported the sharpest deterioration in the quality of subcontracted work since 1999, which combined with lengthening supplier delivery times could conspire to put the brakes on the sector’s growth. But there’s evidence that firms are starting to look beyond in-demand sub-contractors and instead further boost their own staffing levels, which goes someway to explaining the record rise in employment levels.

“In the short term at least, the outlook for the coming quarter is strong with the level of new orders continuing to rise and confidence for the year ahead growing steadily since June.”

The construction industry will grow by 10.0% over the next two years, according to latest forecasts from the Construction Products Association (CPA).

The association is forecasting that construction output will grow by 4.7% in 2014 and 4.8% in 2015.

Over the next five years, total construction output will rise by 22.2% it says.

Private housing starts are expected to grow by 18.0% this year and 10.0% in 2015, while commercial office construction output should grow by 10.0% this year and 8.0% in 2015;

CPA economics director Dr Noble Francis said: “The forecasts reflect the increasing strength of the sector, though risks remain. We anticipate the recovery will continue through the forecast horizon in 2018 and broaden both across sectors and regions. Overall levels of activity will likely match their 2007 peak in 2017.

“In the short-term, the activity will primarily be led by private housing, infrastructure and commercial. Notably, in the long-term, we expect this activity will be boosted by work on schools and hospitals.

“The private housing sector continues to benefit from the improving economic backdrop and government policy measures, with housing starts expected to grow 18.0% in 2014 and 10.0% in 2015. The pending general election, however, will cast the future of housing policies into doubt. Such uncertainty, together with questions about affordability and higher mortgage repayment costs, will likely subdue private housing growth to 5.0% per year from 2016.

“Commercial, the largest sector, has a greater influence than housing on the overall outlook for the construction industry and should contribute 23.4% growth over the forecast horizon to 2018.

“The offices sub-sector is the primary driver in commercial, and recovery in the sector has been dominated so far by growth in London. Activity in regional markets is starting to pick up, however. During the last 18 months, increased demand and rising rents have been reported in key regional markets such as Manchester, Edinburgh and Birmingham which should feed through to new offices construction from 2015. Therefore, commercial offices output is forecast to rise 10.0% in 2014 and 8.0% in 2015.

“The association anticipates infrastructure output will increase during the forecast period across all key sub-sectors including roads, rail, energy, and water and sewerage. Output is expected to rise 9.2% in 2014 and 7.0% in 2015, primarily due to major projects such as Crossrail and nuclear decommissioning.”

Dr Francis concluded: “This represents the association’s central forecast but there are risks on both the upside and downside. Forecasts continue to be revised up as the UK economy rebalances away from consumer spending and services towards manufacturing. Greater than expected UK economic growth could stimulate even more private sector construction.

“Conversely, concerns regarding house price inflation may lead to the imposition of lending constraints. This, combined with interest rate rises, may have an adverse impact upon effective demand, and consequently, house-building.”

Despite an upturn in UK construction output, Morgan Sindall has yet to find profits any easier to make, the company said today.

Announcing half-year results, chief executive John Morgan said: “For the remainder of 2014, the operating environment for general construction is expected to remain challenging with no easing of pressure on margins.”

Morgan Sindall’s prospects were improved, however, by growth in its urban regeneration business, Muse.

Group revenue was down 2% for the six months to 30 June 2014 to £998m (2013 H1: £1,019m). Adjusted operating profit (excluding intangible amortisation) was down 6% to £15.2m (2013 H1: £16.2m). Reported pre-tax profit for the first half was £14.0m, up from £1.8m last year.

The urban regeneration business contributed £3.5m of operating profit, up from £400,000 last time.

Within the construction & infrastructure division, revenue was down 4% to £567m and adjusted operating profit was down 8% to £5.9m. “The overall trading environment for construction & infrastructure has remained difficult throughout the period,” Mr Morgan said. “The combination of lower margins from work tendered in 2012-13 and cost inflation, both at a time of improving general market activity, has provided some significant on-going challenges particularly in the construction activities.”

The group's committed order book as at 30 June 2014 was £2.7bn, an increase of 14% since the previous year end, driven primarily by growth in the order books of fit-out (up 57%), affordable housing (up 27%) and construction & infrastructure (up 9%).  The regeneration & development pipeline was £3.2bn, an increase on the previous year end of 5%.

Mr Morgan said: "The first half has seen an important shift in the balance of our profits, with an increase in the contribution from the urban regeneration business. This trend is expected to continue into the second half and beyond and reinforces our long-term strategy of focusing on both construction and regeneration activities.

“For the remainder of 2014, the operating environment for general construction is expected to remain challenging with no easing of pressure on margins.  However, with continued positive momentum anticipated within both fit-out and urban regeneration, the group remains on track to deliver results for the full year in line with the board's expectations.

“We are encouraged by the improvement in the quality of our order book reflecting the higher level of activity in the market, which positions us well for the medium to long term."

International ground engineering specialist Keller Group has seen profits and revenue grow by more than 20% in the first half of 2014.

For the six months to 30 June 2014, group revenue was up 22% at £788.2m (2013 H1: £644.6m) and operating profit increased 24% to £35.5m (2013 H1: £28.6m).  At constant currency, and including acquisitions, group revenue increased by 33%.

A charge of £30m has been taken for a contract dispute. This aside, profit before tax was £32.5m for the first half, up 21% on the same period last year.

The £30m provision relates to a dispute on a UK project completed in 2008.  The claims against Keller are the subject of ongoing litigation. 

Businesses in the USA and Australia saw particular improvement.

Chief executive Justin Atkinson said that he and the board “remain optimistic about our long-term prospects”.

The pace of residential property price growth in the United States is set to slow this year and continue doing so into 2018, according to real estate experts.

The result of the latest quarterly Zillow Home Price Expectations Survey, which takes into account the views of more than 100 expert panellists, suggests that home values will end 2014 up an average of 4.6% from 2013, to a median value of $177,895.

They also expect values to exceed their 2007 peak levels by the end of 2017, roughly a decade after the housing bust and ensuing recession began.

The survey also reveals that 85% of the experts expect the median age of first time home buyers to rise to 32 or higher in next 10 years.

On average, the panellists expect interest rates on a 30 year, fixed rate mortgage to reach approximately 5.3% by the middle of 2016 and this could slow down the market as first time buyers put off making a purchase.

Indeed, the report says that overall the national home ownership rate fell in the second quarter, and a majority of experts said they expect it to fall further in coming years as the Millennial generation delays home purchases and the age of typical first time buyers continues to rise.

In 2013, the typical first buyer was 31 years old, according to the National Association of Realtors and the survey asked panellists for their expectations regarding the median first time buyer age over the next decade.

Infrastructure services group Renew has agreed the takeover of utilities contractor Forefront Group for £14.8m.

Founded in 1995, Forefront is based in Leigh-on-Sea and operates across southeast England, replacing gas mains under framework agreements with National Grid and Southern Gas Networks.

With 350 employees, Forefront is working on the industry’s 30-year mains replacement programme, replacing more than 150km of iron gas mains pipes a year with polyurethane ones. Forefront specialises in both low and medium pressure outlets up to 48-inch diameter. The business also deals with emergency gas leaks and has a specialised under pressure drilling capability. Forefront also provides a complete reinstatement service and operates its own material recycling facility.

In the year ended 29 March 2013, Forefront’ turned over £26.9m and had an operating profit of £1.7m. For the year to 28 March 2014, revenue was down to £23.3m and the business only broke even as workflow was reduced ahead of the start of a new framework for National Grid. Revenue and margins have now returned to previous levels and Renew expects Forefront to deliver both growth and profits.

Forefront was principally owned by Harwood Capital and associated entities and the company’s founder and chief executive, Bradley Beard. Mr Beard has entered into a new 12 month service contract, which cannot be terminated by either party within the first two years and the whole forefront management team will remain with the business.

Renew chairman Roy Harrison said: “The acquisition of Forefront takes the group into a new sector within the rnergy market and is in line with our strategy of broadening our range of engineering services supporting critical UK infrastructure. As part of the Renew Group, Forefront, which has a leading industry reputation, will continue to develop its strong, independent brand. The gas mains network replacement programme provides Forefront with long term visibility and excellent growth opportunities.”

The acquisition has been funded from Renew’s cash resources and a four-year term loan of £12m provided by HSBC Bank.

Latest revised forecasts from the Construction Industry Training Board (CITB) suggest that 40,280 new recruits to will be needed every year to deliver expected growth and replace those retiring from the industry.

At the start of the year, CITB’s Construction Skills Network (CSN) survey forecasted that on the basis of 2.2% growth in industry output, construction would need 36,000 new recruits a year over the next five years. With growth now predicted to run at 2.9% over the period 2015-19, the predicted number of recruits needed has been raised nearly 12%.

CITB chairman James Wates said: “Skills are the oxygen of the sector and construction needs to invest in its workforce – upskilling those who already work in the industry and attracting new talented recruits to offset those who are due to retire in the next five years."

A resident at a block of flats in Blackpool narrowly avoided serious injury or worse when the second floor walkway he was standing on collapsed, a court has heard.

Resident Andrew Bleasedale had returned to his home at Newby Place in Mereside on 29 May 2012 when he felt the balcony move beneath his feet as he turned the key in his front door. He dived into his flat and looked back to see that the walkway had gone. A gas pipe was also ruptured.

Blackpool Coastal Housing Ltd was prosecuted by the Health & Safety Executive (HSE) on Friday (1^st August 2014) after an investigation found that the company had known the walkways were dangerous for several years, but had failed to act to make them safe.

Preston Crown Court heard that Blackpool Coastal Housing had taken over responsibility for the flats from Blackpool Borough Council in January 2007. The council had previously arranged for a structural engineer to carry out a survey of the walkways after a worker noticed some of the fixings for the handrails had pulled away from the wall.

Further tests identified structural problems with the balconies at Newby Place and two neighbouring blocks of flats, and alerted the council to the need for major repairs.

However, Blackpool Coastal Housing failed to carry out any repairs – despite many of the senior staff who knew about the structural issues transferring to the new organisation, along with relevant files, when it was set up in 2007.

The court was told that the company eventually appointed a structural engineering consultant to design a temporary propping solution for the balconies in September 2008. However, his recommendations were also not implemented.

Instead, in March 2009, temporary scaffolding was erected under some of the balconies on the opposite side to Mr Bleasedale’s flat, although it is unlikely this would have been capable of supporting them if they fell.

Blackpool Coastal Housing eventually started work to replace these balconies in May 2012. During the project, the site manager reported his concerns that all the balconies at Newby Place may be unsafe, but again Blackpool Coastal Housing failed to take any action.

The court also heard that, during the investigation into the incident, the company misled HSE about its knowledge of the structural flaws that led to the collapse, until documents were recovered from as far back as February 2006.

Blackpool Coastal Housing Ltd, of Abingdon Street in Blackpool, was fined £50,000 and ordered to pay £27,821.25 in prosecution costs after pleading guilty to a breach of the Health and Safety at Work etc Act 1974.

HSE inspector Michael Mullen said after the hearing: “The emergency services had to rescue several people from their properties as a result of the collapse, but it’s incredible no one was hurt. We could easily have been dealing with multiple deaths.

“It’s breath-taking that Blackpool Coastal Housing was prepared to take a prolonged gamble with the safety of its tenants at three blocks of flats. The company fell significantly below minimum legal standards for safety, and made a series of bad decisions in its response to the concerns about the balconies over several years.

“This was a potentially life-threatening incident which could and should have been prevented.”

The demand for London property has meant that it has been deemed a sellers’ market in recent years, however, this is changing for property priced £2 million and above, a new analysis suggests.

With significantly more stock on the market the city’s prime market is becoming more of a buyers’ market, according to independent property buying agency Black Brick.

Camilla Dell, managing partner of Black Brick, pointed out that there are currently 1,968 properties on the market priced at £2 million and above in central London, whereas throughout the whole of 2013 some 1,657 properties in this price bracket sold. And just four years ago that figure was significantly less at 1,096.

‘As such, it has started to become more of a buyers' market for the first time in a long time, particularly in the super prime upper end of the market at £10 million and above. Indeed, we're currently in the midst of a search for a client looking for a house in Mayfair/Belgravia from £20 million up to £100 million and there are well over 20 houses for sale in this price range. This is more than usual which shows the higher end of the market is slowing and buyers have more choice and bargaining power,’ she explained.

She also pointed out that in the current political situation in Ukraine if there are sanctions against Russia which mean that certain Russians might be exiled from the UK, this could create even more supply on the super prime end.

‘Many high end developers are now struggling to find buyers for their trophy mansions, and are having to become more realistic with their asking prices. As such, I believe we could see significant price drops at the super prime end of the market. Indeed, one house in Mayfair has already had a significant price reduction from £120 million down to £95 million,’ said Dell.

‘We advise buyers looking above £10 million to take their time and take advantage of the current market. Good deals can be had when there is an air of nervousness in the market and it is at times like these where we push hard to negotiate the best deals for our clients,’ she added.

Although the looming general election is a concern for both sellers and buyers, the significant rises in London property prices are also causing some buyers across all price ranges to hesitate and question whether it is the right time to purchase, according to Dell.

‘In our experience it is impossible to time a market. All of our clients who have decided to wait have inevitably ended up regretting it. The advice we give clients very much depends on their reason for buying,’ she said.

‘Generally, for those looking to buy a home, it's much more about actually finding the right property, which can take time, than it is about price and getting a bargain, and we remind clients that even if the market does drop 5% or more next year,…

Heather Bryant, Her Majesty’s Chief Inspector of Construction at the Health & Safety Executive, is joining Balfour Beatty.

The gamekeeper-to-poacher move sees Ms Bryant become director of health, safety & environment in Balfour Beatty’s UK and Ireland construction business.

She has only been in post as chief inspector of construction for 15 months, after 26 years with the HSE. She starts at Balfour Beatty at the end of next month.

She will be responsible for a team of nearly 100 safety professionals and be a member of the company’s executive leadership team, reporting to and will report Balfour Beatty Construction Services UK chief executive Nicholas Pollard.

Year-on-year sales of crushed rock aggregates rose 9% in the second quarter of 2014, compared to the same period in 2013.

Data from the Mineral Products Association (MPA) indicates further growth in the construction industry across England, Scotland and Wales during the spring with members seeing a continuation in the rise in the sales that began in mid 2013.

Both asphalt and sand & gravel saw a 4% year-on-year increase during the second quarter of 2014.

Although ready mixed concrete sales fell 3.2% over the period, the decline should be viewed in the context of the very high volumes seen last year, the MPA said, insisting that the underlying market trends remain positive.

Sales of MPA materials generally provide an early indicator of official construction output data. These figures suggest that official construction output figures will show a return to growth for the third quarter of the year after a second quarter slow-down.

Despite continuing growth, aggregates output is still well down on 2006-07 levels. Even with 3% growth trends, markets would not regain pre-recession levels until after 2020, the MPA said.

MPA chief executive Nigel Jackson said: “We are seeing continuing general growth in mineral products markets although, as expected, the speed of underlying growth has slowed from the end of 2013. We believe our figures indicate that the second quarter reduction in construction activity highlighted in the recent GDP announcement is a blip and construction will be positive for the year. If the necessary increase in housing starts can be delivered and promised infrastructure investments are implemented, we should see further improvements in industry markets. But this will of course depend on potential economic headwinds and political uncertainties that lie ahead.

“One issue which MPA members are beginning to raise concerns about, particularly in markets which are seeing strong growth such as sand and gravel aggregates in the southeast, is whether the planning system will be able to deliver the permissions required to meet aggregates demands associated with future housing and development activity. This is an issue the industry and national and local government will have to monitor and manage carefully going forward if supply constraints which could impact on growth are to be avoided.”

The figures below give sales trends by volume of material sold for a consistent sample of Mineral Products Association members comprising 80% of the GB market for crushed rock aggregates, sand & gravel aggregates and asphalt, 60% for ready-mixed concrete and 85% for cement.

% change over same period of previous year

• *Cement refers to all cementitious materials.
• ** In the wake of intervention by the Competition Commission, cement data is now published only on an annual basis

Islington Council has called off its housing repairs contract with Kier, deciding against a three-year extension option, and brought the work back in house.

Kier had been providing repair services to the London Borough of Islington’s 30,000 homes for the past 14 year under a £16.5m a year contract.

A council report concludes that the work could be done better, although not more cheaply, in house.The move is expected to increase costs of delivering the service 24%.

The report said that Kier’s performance had improved but remained “less than optimal”. Performance of ‘jobs done right first time’ and ‘urgent repair completions’ were below target, at 83% against a target of 94%. “Areas of particular concern include voids, where performance by Kier’s subcontractors has been very variable, and Kier’s inability to clear overdue works orders as promised: there are still 580 orders overdue from 2012/13. Despite numerous reassurances this issue has not been brought under control.”

The report continues that: “An in-house option offers the best protection against further deterioration in the market for providing responsive repairs services. In recent years many councils and other housing providers have been hit hard when major contractors go out of business. Islington itself had a narrow escape when Connaught went out of business shortly before it was due to take up a capital investment contract, and some of our new-build has been delayed by the collapse of Rok.”

It further states: “Bringing the service in-house could increase the cost by an estimated £3.9m a year. There would also be extra one-off setting up costs in the region of £2m. One-off costs would include negotiating a series of sub-contracts; acquiring vehicles, plant and equipment and their storage; and developing and implementing IT systems to deliver the jobs.”

However, the report, written by Sean Mclaughlin, corporate director of housing and adult social services, concludes: “In spite of the potential short-to-medium term cost disadvantage of the in-house option, in the long-term it could be to the Council’s financial advantage. A well organised and well managed in-house service could provide better value for money and could reduce the financial risk of volatility in the market – there could be more certainty on the costs to be charged to the council.”

Cllr James Murray, Islington Council's executive member for housing, said: “This is an important milestone for Islington’s council housing. At the same time as building a new generation of council housing we want to provide a high-quality service for our residents.

“Two years ago we brought housing management back in-house – and now our decision to bringing the repairs service in-house too shows how important it is for us to get it right.

“By running the repairs service directly, we can ensure resident satisfaction is a priority over profit. Over time, we want to maximise local employment and apprenticeships, alongside supporting the workforce and reducing dependence on subcontractors.”

Almost 40,000 households have bought a home through the UK government’s flagship Help to Buy schemes with over 80% going to first time buyers, it has been announced.

Housing and Planning Minister Brandon Lewis said that the new figures show how the scheme is boosting the supply of new homes, with over 32,500 households buying new build homes through the equity loan and NewBuy options, with a further 7,300 sales though the mortgage guarantee.

He also said that the figures were further evidence that Help to Buy was doing exactly what it was designed to achieve: providing assistance to families while expanding and accelerating the supply of new homes.

Over 80% of sales have gone to first time buyers and been for new build homes. The direct result is, according to Lewis, a new generation of homeowners and a 34% increase in private house building during the first year of the scheme.

House building has climbed to the highest level since 2007, while developers have pledged to use the momentum created by Help to Buy to continue increasing their output. The construction sector has grown for 14 consecutive months, and companies are now taking on new workers at the fastest rate for 17 years.

Lewis said the government had expanded the range of available data about Help to Buy and the latest figures include, for the first time, sales data broken down by postcode, so communities, builders and businesses can see exactly how the scheme is benefitting their area.

‘Almost 40,000 households have now achieved their dream of becoming home owners through Help to Buy. Hard working families are getting the homes they want, while house building has increased to its highest level since 2007,’ said Lewis.

‘It’s no accident that since the start of the scheme private house building has shot up by a third and continues to climb. Developers are increasing their output, and taking on new workers at the fastest rate since records began,’ he explained.

‘And for the first time, we’re publishing post code level data about the scheme, so communities can see exactly how this vital part of our long term economic plan is improving the housing market and helping their area,’ he added.

The data shows that sales of new build homes have been strong across the country. The highest number of equity loan sales were in Wiltshire with 469, Leeds with 457 and central Bedfordshire with 427. Milton Keynes, Peterborough, Bradford, Manchester, Country Durham, Bedford, and Birmingham have all achieved over 300 sales.

The average price of a home is far below the national average at £208,000 under the equity loan and £151,000 under the mortgage guarantee.

According to David Newnes, director of Your Move and Reeds Rains owned by LSL Property Services PLC, said that Help to Buy has boosted confidence and with it demand among first timers who have been carefully saving up for their deposit, adding that lenders have been more willing to lend to higher loan to value borrowers.

‘The Bank of…

Residential building approvals in Australia fell in June but they are still 16% higher than a year ago, according to the latest data to be published.

Figures from the Australian Bureau of Statistics show that during June a total of 15,659 new homes were approved, down 5% in the previous month.

A breakdown of the figures shows the number of detached home approvals fell by 2.2% and the number of multi-unit approvals fell by 10.5%.

According to the Housing Industry Association (HIA), the voice of Australia’s residential building industry, new home approvals have now recorded falls in seven of the past nine months.

‘It is thus likely that we have already reached the peak in the home building recovery and that activity is likely to stabilise over the coming year,’ said HIA senior economist, Shane Garrett.

‘Despite Australia’s inadequate supply of housing, it appears that the usual suspects have brought the upturn in activity to a halt. These include factors like slow land release and barriers to the development of residential land,’ he pointed out.

He explained that the current climate is blighted by too many people not wanting new buildings in their backyard, known as the NIMNY effect. ‘Unfortunately, it seems that this culture is catered for too much by aspects of the regulatory mechanisms for new housing,’ said Garrett.

‘With interest rates at historic lows, the window of opportunity remains open for the supply of affordable housing to be significantly augmented in the near future. A greater push on this front by policymakers could ensure that the housing prospects for this generation of Australians are greatly enhanced,’ he added.

Victoria was the only state to record an increase during June, with approvals rising by just 0.3% during the month in seasonally adjusted terms. The largest declines during the month occurred in Queensland where there was a fall of 10.5%.

Elsewhere Tasmania saw approvals fall by 9%, South Australia by 3.6%, Western
Australia down 3.1% and New South Wales down 2.1%. In trend terms, approvals rose by 9.2% in the Northern Territory but fell by some 15.2% in the ACT.

The 2012 Olympic Games seem to have boosted property in the East of London with new data showing that Olympic Park house prices have grown by over 60%, or £1,200 every month since July 2005 when the Games were awarded.

The average house price in the 14 areas of East London closest to the Olympic Park is now £334,123 and since 2012, house prices in the Olympic Park surrounding areas have grown by over £60,000.

Home owners in the 14 postal districts1 in East London closest to the Olympic Park have seen the average value of their property rise from £206,191 in July 2005 to £334,232 in March 2014. This represents growth of 62% or £127,933 over the period, equivalent to a monthly increase of £1,214, according to research by Lloyds Bank.

Property values in areas surrounding the Olympic Park have outperformed national markets over the same period. The average house price in England and Wales grew by 34% from £185,662 to £248,597 in the eight years to March 2014. In cash terms, the increase in average house price in the Olympic areas at £127,933 is more than double the growth seen in England and Wales at £62,935.

The house price premium between the average in the 14 East London areas and the rest of England and Wales has more than trebled from 11% in July 2005 to 34% in March 2014.

Since 2012 property values in Olympic areas have outpaced both London and national markets. Prices in the 14 areas closest to the Olympic Park rose by 23%, from £272,750 in March 2012 to £334,123 in March 2014, compared to just over 8% for England and Wales.

Whilst in London as a whole prices have grown by 17% in the same period. In Shoreditch, Daltson and Walthamstow, average property values have seen the best performance rising by close to a third.

Eight of the 14 areas closest to the main site have seen their average house price rise by over £100,000 since London won the bid to hold the Games. Daltson recorded the largest increase at £236,558, followed by Shoreditch at £209,460, Homerton at £176,275, Clapton at £175,767 and Bethnal Green at £166,760.

The research also shows that half of the areas closest to the Olympic Park now have an average house price of over £325,000 yet in July 2005 there were none.

Seven of the 14 areas closest to the Olympic Park now have an average property value of over £325,000. These include Daltson at £468,792, Shoreditch at £429,537, Bethnal Green at £395,184, Clapton at £393,616 and Homerton at £391,227. In July 2005 none of 14 areas had an average house price above £235,000.

The most affordable area is Plaistow with an average price of £207,004, followed by East Ham at £210,504 and Manor Park at £247,110.

‘Since winning the bid to host the 2012 Olympic and Paralympic Games nine years ago, average property values in the 14 surrounding areas have grown by close to two thirds,’ said Nitesh…

A Cambridgeshire company and its director have landed in court after an unsecured scaffold blew over into a street when plastic sheeting acted as a sail.

It fell onto the pavement and road in High Street, Stretham, on 18 April 2013 three days after it was erected in front of a house by Buckden firm Crusaders Scaffolding Ltd and director Gary Driver.

Both parties were prosecuted by the Health & Safety Executive (HSE) after an investigation found the two-storey structure, which was about 11m long and 4.5m high, had not been secured to the property in any way.

Cambridge Magistrates’ Court heard that a large covering of plastic sheeting had been attached to the outside of the scaffold to protect passers-by as the work being carried out on the house involved shot blasting and steam jetting. However, this ultimately acted as a sail that caused it to blow over in the wind.

Crusaders Scaffolding Ltd, registered to High Street, Saffron Walden, Essex, but operating from Great North Road, Buckden, was fined a total of £7,500 and ordered to pay £526 in costs after pleading guilty to two breaches of the Work at Height Regulations 2005 and one of the Health & Safety at Work etc Act 1974.

Gary John Driver, 51, of Hunts End, Buckden, St Neots, was fined £5,000 with £500 costs after also pleading guilty to the same Health & Safety at Work etc Act 1974 offence.

HSE inspector John Berezansky said: “It was extremely fortunate that no-one was working on the scaffold at the time and that no-one or nothing was hit when it fell. This is a busy High Street used by children to get to and from the local school. Had the scaffold fell during the morning or afternoon school run it could have been a different story.

“The scaffold fell well below the required standard. In essence, Crusaders Scaffolding created an unsecured sail that fell over in the wind. Gary Driver was directly involved in the commissioning and construction of the scaffold. The risks associated with scaffolding are well known in the industry and to have not secured the structure was a basic error.”

Proposals designed to reduce red tape and help builders get onto sites without delay have been put out for consultation.

Local residents will also have a greater say over the future development of their area, under plans announced yesterday by housing and planning minister Brandon Lewis.

The proposals are part of the government’s drive to streamline planning and are intended to make it it easier for communities to devise neighbourhood plans, help builders get onto sites with planning permission without delay and reduce bureaucracy and red tape.

The British Property Federation (BPF) has welcomed the launch of consultation. It was particularly pleased to see the three-tier planning system included within the proposals, which it has long advocated. This ‘Planning Pyramid’ will determine which applications need the most attention, allowing prior approval rights to those projects that demand the least attention, which will make the planning approval system considerably more efficient, it said.

BPF chief executive Liz Peace said: “The proposals in today’s consultation document are encouraging, as they are targeted towards a number of specific issues that can cause obstacles in the planning process. While some of the suggested changes are small, they are also important, and if turned into legislation could make a tangible difference to the system and speed-up much needed development in the UK.”

Lewis said: “Since 2010 we’ve made significant strides in reforming our planning system from one of draconian top-down targets, to one where local people are in charge and it’s working well. Last year alone, planning permission was granted for 216,000 new homes. Today’s proposals will help scrap even more red tape and make it even easier to get the homes and shops communities want built, while at the same time breathing new life into our vital industries.”

The proposals include giving more local communities a greater say over development. Already more than 1,000 communities are making use of their new right to produce a neighbourhood plan or neighbourhood development order – the latest proposals would speed up the process to encourage more to follow suit.

Also up for consultation is a proposal to put on a permanent footing the currently permitted development rights to allow offices to be converted into new homes. The proposals are also designed to make it easier to convert empty and redundant buildings into new homes. New measures would also ensure planning conditions are cleared on time so that new homes that have planning permission can get built without delay.

The current rules governing change of use from a shop to a restaurant, and from a shop to leisure use, would be relaxed in order to help high streets adapt to changing customer needs. Payday loan shops and betting shops would be excluded from a new, wider ‘retail class’, so councils have a greater say over these being set up in their area.

The proposals also aim to remove what the government describes as “the unnecessary gold-plating an EU directive which slow down the process, by reducing the numbers of homes and other urban development proposals that would be screened unnecessarily for environmental impact assessments”. 

There are also proposals for improving the way major infrastructure projects are planned, with proposals for a more flexible and streamlined system so practical changes can be made to planning proposals where these are beneficial and developers can use a ‘one stop shop’ for more of the consents they need.

Keltbray has announced the best-ever performance in the company’s 38-year history.

It reported a 15% increase in turnover for the financial year ending 31 October 2013, up from £126m to £145m. Gross profit improved by 29%, and operating profit remained stable at £2.6m. The group’s cash position improved to £4m in hand by year end.

“We expect to continue to stay ahead of the construction market recovery by growing the business in excess of 20% in 2014 based on our good pipeline of work," said chief executive officer Brendan Kerr. "Our challenge for 2014 and 2015 will be to meet the widely reported skills shortages in our industry by widening the talent pool and continuing to build on our track record of attracting young people to Keltbray by offering good prospects, job security and a range of training and development opportunities.”

Keltbray’s Demolition & Civil Engineering division, which covers about 66% of the business  and includes piling, asbestos management, engineering design consultancy as well as haulage and plant increased turnover by 12%. Contract wins include regeneration projects at the Heygate Estate in London for Lend Lease, and major residential development for Qatari Diar at Chelsea Barracks.

The Rail division, which covers about 30% of the business and includes overhead line electrification design and build as well as rail engineering and civils projects, grew by 24% and was responsible for the company’s biggest turnover increase. Keltbray became the delivery partner for ABC Electrification and Costain to work on a seven-year rail electrification framework contract, which is expected to provide workloads until 2021.

Kerr said: “I am pleased about the continued strengthening of our performance and our consistent improvements in turnover growth and maintenance of operating margins. To meet increasing market demands, we invested a record £9 million in new plant and assets in 2013. We also bolstered our human resources and training functions to manage our future skills and labour requirements effectively."

Housing growth in the UK over the last quarter was driven entirely by the private sector, NHBC’s new housing registration figures have shown.

Overall, the number of new homes registered across both the private and public sectors in the UK for the second quarter of the year totalled 36,858 – a 3% increase on the same period last year.

The figures show that this steady growth was entirely driven by the private sector – which grew 9% compared to same period last year. In contrast, the public sector reported an 11% drop in registrations, down to 9,331 from 10,474 in the same quarter last year.

The drop in public sector registrations coincides with first phase of the Government’s Affordable Housing Programme coming to an end in 2015.

NHBC’s registration statistics show that June experienced a 14% increase in registrations, compared to the same month last year.

Across the UK for the last quarter, the South East experienced a 48% increase compared to the same period last year (with the East Midlands also considerably up, at 38% for the quarter.

NHBC’s chief executive Mike Quinton said: “It is encouraging to see that house building levels have continued to grow in 2014 – following the substantial increase in volumes recorded last year. We hope to see this growth further consolidated throughout the rest of the year. However, we have been clear that the UK still has an undersupply of new homes so we must continue to work hard to meet the growing housing needs of the population.

“Our figures also show that there has been a noticeable growth in the private sector. As expected, this has coincided with a drop in affordable housing registrations.

“This decrease in public sector registrations can be attributed, in part, to the first phase of the Government’s Affordable Housing Programme coming to an end. We anticipate that the public sector will pick up again as funding is fully allocated for the next phase from 2015 to 2018.”

Construction union Ucatt has described the government’s decision to privatise the jobs of all prison maintenance and facility maintenance staff as an expensive farce.

Prison maintenance staff were told yesterday that their jobs will definitely be privatised on 1 June 2015. The previous proposal to consider an in-house bid has been dropped.

Shaun Lee, Ucatt’s national officer for the Prison Service, said: “This is an expensive farce. Workers have had their lives put on hold for several years as the Prison Service have pretended there was a chance that work might not be privatised. The reality was that management and the ministers were always determined to sell workers down the river.”

The four companies bidding for the four regional contracts are Amey, Carillion, Mitie and Sodexho. No company can win more than two of the contracts. An announcement will be made in the autumn about which has won which contract.

Lee added: “Privatising prison maintenance worker will not save taxpayers a penny. The quality of maintenance work will deteriorate which will then have a major effect on safety in prisons. If contractors bring in their own workforce there will be a major threat of security being compromised.”

Liverpool City Council has set out plans for 646 affordable homes to be built over the next four years after a successful bid for £14m of government cash.

Four of the city’s Housing Associations have secured the funding from the Homes & Community Agency 2015-18 Affordable Homes Programme. Liverpool Mutual Homes will be building 313 units, with Riverside receiving funding for 186, Plus Dane set to build 96 and Liverpool Housing Trust funded to build 51 units.

The homes – made up of 566 properties for rent and 80 for shared ownership – will be a mix of two, three and four bedroom houses and one and two bedroom apartments. Some will feature energy saving technologies to give tenants cheaper fuel bills.

Assistant mayor and Cabinet member for housing, Councillor Ann O’Byrne, said: “This is really great news for the city and is part of our commitment to improve the range and quality of properties on offer for residents. We are working closely with our housing associations to make sure the properties are built in the right places to meet the demand in the local area.

“It is another boost to the Mayor’s pledge to build 5,000 new homes and bring more than 1,000 back into use which we are already on track to exceed.

“We will also be making sure that as much of the construction work as possible benefits local firms and local people.”

There has been a big fall in opposition to house building in the UK since 2010, according to figures from a new survey by the British government

The British Social Attitudes survey asked people whether they would support new homes being built in their local area, revealing that between 2010 and 2013 opposition fell by 15%.

In 2010, some 46% said they would oppose new homes being built in their local area, compared to 31% in 2013. The data also shows that support for new house building increased from 28% in 2010 to 47% in 2013.

Net opposition, that is the percentage of those saying they are opposed minus those saying they are supportive, fell from 18% in 2010 to -16% and the strength of opposition for new homes has also while the proportion of respondents who said they would strongly support new homes more than doubled from 5% to 11%.

Opposition fell across all age, tenure and income subgroups and among respondents living in different types of areas. However, home owners living in small cities and towns and in rural areas were still more likely to be opposed than renters and those living in large cities.

When respondents who were not supportive of new homes were asked which of the potential benefits from new housing would make them more supportive, they most commonly selected more employment opportunities, 17%, more low cost home ownership at 11%, and more or improved medical facilities also at 11%.

When all respondents were asked if they would be more supportive of new homes if the government provided local councils with more money to spend on local services for every new home built almost half, 47%, said this would make them more supportive.

A majority of respondents thought that a more localist planning system would make them more supportive of new homes. Some 63% said they would be more supportive if local people were given greater control and say over what gets built in their local area.

When asked if the government brought in changes so that when people from a local community come together to get involved in planning for new development, that community can receive extra money to be spent locally, 57% said this would make them more supportive.

The survey also found that 38% agreed whether they support new homes being built in their local area depended on their design and 48% agreed that properties built in the last decade were better or much better designed, in terms of their external appearance, compared to those built around 20 or 30 years ago. Some 27% thought design was worse or much worse.

Some 82% agreed there is a shortage of homes that are affordable to buy in England, with 73% agreeing there is a shortage their local area and 83% agreed it was more difficult or much more difficult to buy their own home today compared to 20 years ago.

Views were mixed whether building more homes would improve affordability with 40% agreeing that building…

Arcadis is to buy Hyder Consulting in a £256.2m deal agreed by the boards of both companies.

Arcadis will acquire the share capital of Hyder at a price that represents a premium of approximately 38.5% on Wednesday’s closing price of £4.69 per Hyder share.

The Arcadis directors believe there is a compelling strategic rationale for the acquisition, seeing the addition of Hyder’s design and engineering capabilities as strengthening presence in specific geographies and in market sectors such as infrastructure, buildings, water and natural resources. Arcadis said that the acquisition will enable it to establish a footprint in new target markets sooner than previously anticipated.

Arcadis chief executive officer Neil McArthur said: “Hyder is a unique company with a long history of being involved in the leading edge of design and engineering. Through the transaction we see an excellent opportunity to better serve our clients by further deepening our capabilities in global design and engineering in growth markets whilst creating exciting career opportunities afforded by a stronger global growth platform for staff in both companies. The transaction will create value for Arcadis shareholders by accelerating our sustainable growth strategy and through the synergy opportunities that arise from the combination.”

Hyder chief executive Ivor Catto said: “Arcadis’ recommended cash offer announced today represents a significant premium to Hyder’s current share price. Although the Board believes that Hyder has a strong future as an independent business, it considers that this cash offer substantially recognises Hyder’s growth prospects, and provides certainty, in cash, to our shareholders today. The resultant group should also provide further opportunities for our highly valued clients and staff.”

Carillion has responded to Balfour Beatty decision to walk away from merger talks by saying that as far is it is concerned, the deal is not dead yet.

Carillion’s directors decided only yesterday that it was “essential to retain the stability and dependability of Parsons Brinckerhoff’s earnings” for a merger to work.

Up to this point, Balfour Beatty thought that both sides understood that its sale of its US engineering subsidiary was going ahead, come what may. Carillion seeking to block that sale proved a deal-breaker for Balfour Beatty who promptly upped sticks.

A subsequent statement released by Carillion today indicates that it had not yet totally accepted that the breakdown in talks cannot be rescued and was trying to work out what its next move should be.

It said: “The board of Carillion continues to believe in the powerful strategic rationale of a combination and the capability of such a combination to create very significant shareholder value. The board of Carillion will therefore give further consideration to its position in the light of its requirements that (i) due diligence would have to be concluded to its satisfaction; and (ii) the boards of Carillion and Balfour Beatty would have to recommend a combination to their shareholders.”

Carillion said it would make a further announcement in due course.

Some 17% of US homes were seriously underwater in the second quarter of 2014, down from 26% a year ago, according to the latest figures from housing data firm RealtyTrac.

It means that 9.1 million residential properties were seriously underwater where the combined loan amount secured by the property is at least 25% higher than the property’s estimated market value.

Seriously underwater homes are now at their lowest level since RealtyTrac began reporting negative equity in the first quarter of 2012. The recent peak in negative equity was the second quarter of 2012, when 12.8 million properties, some 29% of all properties with a mortgage were seriously underwater.

The number of equity rich properties, that is homes with at least 50% equity, held steady from the first quarter at 9.9 million in the second quarter of 2014, representing 18.8% of all properties with a mortgage.

Another 8.8 million properties were on the verge of resurfacing in the second quarter of 2014, with between 10% negative equity and 10% positive equity, representing 17% of all properties with a mortgage, up from 8.5 million or 16% in the first quarter of 2014.

The data also shows that fewer distressed properties were in negative equity in the second quarter, with 44% of all properties in the foreclosure process seriously underwater, down from 45% in the first quarter of 2014 and down from 57% in the second quarter of 2013.

The share of foreclosures with positive equity decreased to 34% in the second quarter, down from 35% in the first quarter. Top states for foreclosures with equity include Colorado, Texas, Oklahoma, Hawaii and Louisiana.

‘Home price appreciation has slowed in the last few months in many of the markets with the most underwater homes, slowing the pace at which home owners are recovering equity lost during the recession,’ said Daren Blomquist, vice president at RealtyTrac.

‘For instance home price appreciation in California was at 16% in May 2014 compared to a high of 31% in July and August of 2013. In Arizona, home price appreciation has slowed to 6% annually compared to a high of 24% last year,’ he explained.

‘In addition many of the properties that are seriously underwater are in a deep negative equity hole that will take some time to dig out of. The average loan to value on the 9.1 million homes seriously underwater was 133% and the average loan to value on the homes in foreclosure that are seriously underwater was 134%,’ he added.

States with the highest percentage of residential properties seriously underwater in the second quarter were Nevada at 32%, Florida at 30%, Illinois at 30%, Rhode Island at 29% and Michigan at 27%.

Major metropolitan statistical areas with the highest percentage of residential properties seriously underwater were Lakeland, Florida, at 37%, Las Vegas and Cleveland both at 35%, Palm Bay-Melbourne-Titusville in Florida at 32%, and Chicago, Cape Coral-Fort Meyers in Florida and New Haven-Milford all at 30%.

Major metro areas with the highest percentage of resurfacing equity, between…