Significant growth in the private rental sector in central London’s prime property market over the past decade now sees 16.2% more households living in private rented accommodation than in owner occupied properties.

New research also shows that supply is down with the number of new properties coming onto the market down in the second quarter of the year compared to the same period in 2013 with flats down 14% and houses down 27%.

The report from estate agency, W.A.Ellis in conjunction with independent property intelligence company, Dataloft and data provider Lonres, reveals that supply levels of flats have fallen most significantly in the lower price brackets, with new properties on the market below £750 a week down by 19% since March 2014. At the upper end of the price scale at £2,000 plus per week, supply levels have fallen by 10.2%.

Rental values achieved in the second quarter of 2014 were 5.1% higher than in the same quarter of 2013, a reflection of the improving economic outlook which sparked a turnaround in the market in late 2013.

The family house market in the prime central London sector is the most competitive with the number of family houses let so far in 2014 at W.A.Ellis up 12% on the same period in 2013.

Family houses are the most supply constrained homes. Since March 2014, houses have accounted for just 9.8% of properties brought to the market. The scarcity of family houses has meant tenants are paying 13.8% on average more for a house over a flat with the same number of bedrooms. In Kensington and Notting Hill this climbs to almost 25%.

The report also reveals that the lettings market has become more seasonal. Properties let between July and October accounted for 51% of all lettings in 2013. Over the last 10 years, properties marketed in November have taken 25% longer to let than those in September.

Gross yields for a two bedroom central London flat averaged 3% last year. Yields were lowest within the most expensive postcodes, with Chelsea and Knightsbridge recording yields at 2.5% and 2.3% respectively.

‘The growth in property sale values has prompted a number of landlords to cash in and sell their investment, one reason for the drop in supply levels in some areas of the market. Indeed, at W.A.Ellis, the percentage of vendors selling rental accommodation has risen from 22% to 32% over the past decade,’ said Lucy Morton, senior partner and head of lettings at W.A.Ellis.

‘This trend has been especially prevalent in the family house market, and is contributing to the current shortage of this type of rental property. The traditional buy to let market of one and two bedroom flats, however, is relatively unaffected,’ she added.

She pointed out that unlike investors in the mainstream housing market, investors in prime central London have long been willing to accept lower yields while prospects for capital growth remain high.

‘Total returns continue to be attractive, but growth in prices has outpaced rents and, as a…

When leaving a rental property, most people ensure they take their possessions with them but new research shows that they can leave some very strange things behind.

One tenant who left his Range Rover behind. It sat in the parking space with the keys left with the porter. When the letting agent contacted the former tenant informing him that the vehicle needed to be removed, he was told to keep it.
Unfortunately this would have been a bit problematic so after much to-ing and fro-ing, the tenant eventually arranged for someone to pick it up.

That tenant wasn't the only one who left something valuable behind. One letting agent was rather shocked to enter what was supposed to be an unfurnished flat after the tenancy ended only to find that everything had been left behind; furnishings, paintings, designer clothes and even Swarovski figurines. The foreign tenant was already halfway around the world so her possessions were eventually donated to charity.

The same outcome awaited the designer clothes and accessories left behind by a shopaholic. The charity shop was delighted to receive them, especially as they were still in their original bags with the tags attached.

Some other interesting items left behind include a toupee left in a biscuit tin in the kitchen, entire window (glass and frame) lying on the bed, fake Grecian columns and statues that had been cemented in situ in the reception room and a case of champagne.

Other less strange, but expensive items, include several cases of knives of all descriptions, a flat screen Bang & Olufsen TV, a set of skis and full set of ski attire, an American fridge freezer despite there being a working integrated fridge already in situ, and a full sized treadmill in the reception room.

‘Just when you think you've seen it all, something comes along to surprise you,’ said Marc von Grundherr, director of Benham & Reeves Lettings.

‘The Range Rover wasn't even the only vehicle we've had left behind. It was just the most expensive. I probably thought about keeping it for a second too long but then realised it would've been hard to transfer the title into the company name,’ he added.

After 10 days of the scheme being opened, 175 people had contacted The Construction Workers Compensation Scheme for an application enquiry form.

A third of those had returned their forms as of Tuesday this week.

That represents approximately 5% uptake of the compensation offer in the early days of the scheme as there are 3,213 names on the Consulting Association database eligible for the offer.

Whether the remain 95% are holding out for the prospect of a bigger settlement from the courts, are not aware of the scheme and their entitlement under it, or are simply slow off the mark remains to be seen.

The take-up figure was revealed by the scheme’s legal advisor Richard Slaven, a partner at Pinsent Masons, to the House of Commons Scottish Affairs Committee yesterday.

As previously reported, The Construction Workers Compensation Scheme opened on 4^th July.

Full details of the terms of the compensation scheme – from the application process to levels of compensation – can be found at www.tcwcs.co.uk. Any construction worker, or the family of a deceased construction worker, who believes they may have been affected by TCA records can download an initial enquiry form which is also available from the TCWCS free-phone helpline on 0800 980 8337.

The real estate market in Abu Dhabi has been relatively steady in the second quarter of 2014 with prices and sales seeing little movement, according to the latest residential report from Asteco.

It says that on average villa prices remained stable with increases of only 2% and overall there was continued levels of demand for all types of property.

Transaction levels for freehold development such as Golf Gardens and Al Raha Gardens were steady but affordable developments such as Al Reef saw no growth during the quarter as prices had peaked earlier in the year.

Rental rates also remained relatively stable with quarterly growth rates ranging from 0% to 7%. High end developments saw the highest levels of growth and the report says that reflects a clear preference for newer, master planned traditional supply on the Main Island.

It also points out that with the removal of the rent cap, several lower end properties leased as reduced rates have reverted back closer to market rents, especially in areas such as Central Abu Dhabi and Khalidiya/Bateen.

It has also been announced that a rental index will be launched in Abu Dhabi later this year with the aim of creating a more transparent market and regulating maximum rental increases.

The report also points out that with rental rates at Al Reef Villas reaching significant highs they are 14% higher than in the second quarter of last year.

The high rents seen in Al Reef led to an overflow of demand for Hydra Village where villas had already achieved a 5% rental increase since the third quarter of 2013.

‘Nonetheless, we do not foresee significant increases in Hydra Village, at least until proper landscaping and supporting facilities are completed,’ the report says.

Last month saw the UK housing market bolstered by remortgaging and buy to let activity, coupled with a sharp rise in property valuations, according a new report.

The latest data from chartered surveyors Connells Survey & Valuation shows that the total number of all property valuations were up 30% in June compared to May.

This expands on a more gradual month on month recovery of 3% in May, following a sharp correction in March and April.
On an annual basis, this leaves total activity at the same level as a year ago, with a 0% annual increase compared to June 2013.

According to John Bagshaw, the firm’s corporate services director, affordability is potentially a very real limiting factor for the housing market and it has been for some time. ‘Now, with the imposition of the Mortgage Market Review in April, alongside the latest note of caution from the Bank of England, the world of mortgages is revealing its fundamental link to household incomes,’ he said.

‘A rapidly improving economy with the prospect of real wage growth this year means that progress should continue. But we are now in a different phase of recovery, making new headway rather than just playing a rapid game of catch-up. This good news as there is now a sense of optimism that the housing market will be more stable and sustainable in the long term due to these developments,’ he added.

The report also says that remortgaging has formed the backbone of the monthly recovery, up 61% between May and June. In part this rapid growth can be attributed to making up ground lost in previous months, coming after a cumulative drop of 40% in March and April, and a very gradual 4% rise in remortgaging activity in May. However this still leaves remortgaging activity 10% higher than in June last year.

Moreover, as a proportion, remortgaging made up 28% of all valuations in June 2014. This is not just higher than the temporary low of 22% of all valuations seen in April, but also significantly above the average of 26% of all activity attributed to remortgaging in the previous 12 months.

Buy to let activity has also seen above average growth, seeing the same 10% increase since June last year. This follows 31% growth between May and June in the number of buy to let valuations.

‘It appears that some mortgage lenders have decided to refocus on remortgaging and buy to let. There are two aspects to this dramatic month on month growth; firstly that remortgaging was severely affected by the short term transition to the new MMR regime, and the temporary backlogs this created.

‘Secondly, a more subtle shift may have taken place. Pre-MMR there was a real focus on home movers and particularly first time buyers. But the latest noises from the regulator and the Bank of England seem to have put a cooler on riskier lending, especially at high income multiples. Equally, the expectation that interest rates might increase…

Senior directors of Balfour Beatty, Laing O’Rourke and Vinci yesterday repented for their sins in front of a committee of MPs and sought forgiveness.

They didn't get much.

As part of the House of Commons Scottish Affairs Committee’s long-running investigation into the construction industry blacklisting scandal, the three bosses once again admitted the culpability of their companies and acknowledged that their supporting of the Consulting Association had been wrong.

Balfour Beatty Construction Services UK chief executive Nick Pollard, Laing O’Rourke group finance and commercial director Callum Tuckett and Vinci Construction UK managing director Andrew Ridley-Barker gave evidence to the committee. They admitted their companies used the blacklisting service up until the Consulting Association was raided and shut down by the Information Commissioner's Office in 2009. "We should never have done it," said Mr Ridley-Barker.

They were accompanied by legal advisor Richard Slaven, a partner at Pinsent Masons, and crisis management consultant Richard Jukes of Grayling, both of whom are retained by The Construction Workers Compensation Scheme, set up by the guilty contractors to pay off the workers whose lives they may have ruined.

The construction bosses and their advisers were given a rough ride by MPs who gave every indication of being on the side of the victims on this one. Committee chair Ian Davidson dismissed their compensation scheme as “damage limitation” rather than a real demonstration of repentance.

Mr Davidson rejected the claims of the contractors that they were being proactive in putting things right. He said they were merely reactive. He said that all the evidence  contractors would have continued blacklisting had they not been caught and only set up the compensation scheme once they had been hauled over the coals and told to do so by his committee.

Richard Jukes and Grayling were accused by MPs of 'misrepresenting the compensation scheme' in publicity information they had put out to the media, claiming union support that they did not, and do not, have. It is, in fact, a unilateral scheme.

Breedon Aggregates, supplier of raw materials to the construction industry, saw its revenues grow 25% in the six months to 30 June 2014.

Half-year revenues reached £125.5m, up from £100.2m for the same period last year.

Underlying operating profit was up 57% to £10.4m (2013 H1: £6.6m). Pre-tax profit more than doubled to £9.1m (2013 H1: £4.4m).

Executive chairman Peter Tom said the improvement was partly driven by better weather –   the start of 2013 was severely affected by poor weather – and partly due to improvement in the economy. The Mineral Products Association has reported national volume increases of 15-18% for aggregates and asphalt and 5% for concrete in the first quarter of 2014.

Breedon’s numbers were also boosted by acquisitions

The results include a full six months' benefit from the acquisitions of the former Marshalls quarries in England and the former Aggregate Industries (AI) operations in Scotland, which were completed on 30 April 2013. The results also include a month's contribution from Huntsman's Quarries, acquired on 1 June 2014 for £15m.

Mr Tom said: “Market conditions in England generally remain stronger than in Scotland, although the Scottish business had a strong first quarter on the back of increased spending by Transport Scotland.  We continue to focus on our core customers and markets, where we successfully differentiate our products by offering better quality and service.  The improved market conditions have enabled us to increase prices, recovering input costs, and make up some of the ground lost during the recession.

“We have finally come to the end of the long-running investigation by the Competition & Markets Authority (CMA) into the acquisition of the AI business in northern Scotland.  This drawn-out process started at the end of April 2013 and, as previously reported, the CMA's findings mean that we are obliged to sell one concrete plant and one asphalt plant in the Aberdeen area and enter into a price-control agreement on asphalt in the Inverness area.  We have six months to comply with the findings.  Pleasingly we are now able to fully integrate the business, which has been operating as a commercially independent entity for the past year, and we expect to deliver synergy benefits in the second half of this year.

“We continue to invest in our core business and in the first half we acquired a new sand and gravel quarry at West Deeping in Lincolnshire and opened a new concrete plant at Cannock near Stafford.  We also acquired, from AI, the concrete plant in our Clearwell quarry (purchased from Marshalls last year).  In addition, we invested in a significant amount of capital equipment in the first half, including new processing plant at Craigenlow quarry in Scotland and a major investment to increase capacity at our large Norton Bottoms quarry near Newark.  We continue to see good opportunities for further organic investment in the business at attractive returns.”

Former chief executives of Kier and Costain have both joined the board of construction consultant Sweett as non-executive directors.

John Dodds was 40 years at Kier Group, with the last seven as chief executive until his retirement in 2010. He is currently non-executive chairman of Severfield and a non-exec director of Newbury Racecourse and Lagan Group Construction Holdings.

Alan Lovell was chief executive at Costain during a turbulent time in the mid 1990s, having stepped up form finance director to succeed Peter Costain. An accountant by profession, he has also had spells propping up Conder and Jarvis. These days he is chairman of Tamar Energy, and a non-exec director at Progressive Energy and TidalStream.

Both men join the board of Sweett next week, with Mr Dodds as chairman, replacing Michael Henderson.

Sweett Group CEO Dean Webster said: "I am very pleased that John has agreed to join Sweett Group as chairman. He is an industry heavyweight with broad experience and is highly respected by both the construction sector and the investment community.  I very much look forward to working with him and benefitting from his experience. I welcome Alan too, whose expertise will add another dimension to what is a very strong board.”

Living close to a good school remains a priority for home buyers in the UK with 20% of estate agents believing it is the most important factor.

The latest research data from Move with Us, a network of independent estate agents in the UK, also found that 18% of estate agents believed good transport links were key. Proximity to local amenities such as a doctor’s surgery and shops came in third with 14% of the votes.

Other factors that were less important to buyers include a fast internet connection which scored 7.6% and a good mobile phone signal with 13%.

Estate agents also cited what factors buyers are less interested in compared to five years ago. Home buyers are less interested in garden sheds which got 18% of the vote. Garden size and outhouses came in at second and third place with 15% and 14% respectively.

Other results include the traditionally bath tub with 14%, a power shower at 10% and finally, a dining room with 8%.
The one factor estate agents can’t seem to agree on however, is the garage. Some 11% of estate agents have noticed home buyers are more interested in properties with a garage whereas 9% say home buyers are less interested in them.

‘The property market has been through peaks and troughs over the last five years but properties bought near to good schools, transport links and local amenities are typically sound investments,’ said Robin King, director at Move with Us.

‘Anyone looking to buy a good property should stick to these golden rules. Surprisingly, a fast internet connection and good mobile phone signal came low down the wish lists of prospective buyers although interestingly, a good internet connection is becoming increasingly sought after in rented accommodation,’ he added.

The Considerate Constructors Scheme has appointed Mike Petter as its new chairman, with Angus Kennedy and Albert Ree joining the board.

Mike Petter, former managing director of consultancy firm Five Dimensional Management, became a director of the scheme in July 2012 and vice chairman last year.

He takes over from David Watson, who has been chairman since 2012, who helped the scheme introduce a number of new initiatives, including the Code and Checklist in 2013 and helped develop Supplier Registration.  David Watson will remain on the board for another year. 

Angus Kennedy, who has been monitoring for the scheme since 2011, is a chartered builder. He was construction director on the £150m Maxim Business Park in Lanarkshire in 2007.

Albert Ree has worked for Balfour Beatty for more than 30 years and has been a director of Balfour Beatty Construction Northern. He now heads sustainability for Balfour Beatty Construction Services UK.

John Sayers steps down from the board but assumes the new position of scheme ambassador, representing CCS at industry events.

Chief Executive Edward Hardy said: “David has made an enormous contribution to the ongoing success and growth of the Scheme and we’re happy to see him remain on the Board for another year. I’d like to welcome Mike who brings his industry expertise to the position and I know the Board is looking forward to working with him to continue the successful development of the Scheme and its valuable work.”

The Mayor of London is calling on the government to extend its plans to accelerate the release of disused public land in the city and enable him to unlock new development to help meet London's housing needs.

Boris Johnson said that he wants to be able to fast track the development of thousands of homes on a host of public land sites. Speaking during a visit to Catford where 500 new homes are being built on a site taken on by the Mayor in 2102, he highlighted how effective this kind of development can be.

The former Catford Dogs Stadium site in Lewisham had lain empty for more than 10 years before coming into his control. Now 87% of the site is in development.

Johnson said there is the capacity for thousands more homes on strategic public land across London that is ripe for development.

The £117 million redevelopment of Catford Green is bringing more than a thousand jobs and 589 new homes to the site in the heart of Lewisham under a deal reached between the Mayor and developer Barratt London. When finished, this will include 173 low cost homes to rent and buy.

The Mayor's work to redevelop disused public land is one strand of his comprehensive Housing Strategy to double house building and create the homes needed in London.

This financial year the Mayor is supporting the completion of more affordable homes than in any other year since 1980. This month further allocations will be made to 54 housing providers, as part of the Mayor's 2015/2018 £1.25 billion pot.
This puts the Mayor on track to deliver the affordable housing targets in the draft London Housing Strategy and adds to the Mayor's 100,000 low cost homes programme across his two terms.

Johnson is driving a cross-party amendment to the government's Infrastructure Bill to extend new powers to accelerate the release of public land to London, by giving the Greater London Authority the same powers to work with Whitehall bodies as the Homes and Communities Agency.

‘This is a fantastic opportunity for us to work with the government and unlock the potential of the many empty and unused sites across the capital. Rapid redevelopment, regeneration and most importantly thousands of new homes for Londoners could be just around the corner given the necessary fast-tracking powers. Dramatic transformations, like the one we are witnessing in Catford, would be possible all over the city,’ said Johnson.

Baroness Jo Valentine, chief executive of business group London First, pointed out that while there are empty sites and redundant buildings owned by the public sector that could be much better used for housing there is no body dedicated to actually identifying where all this land is.

‘First we need to give the Mayor the power to create a 21st Century Domesday Book for London so we know where this land is. Then we need to ensure he has the ability to get on with selling it using his trademark gusto,’ she said.

Catford…

The number of tenants in the UK severely behind on rental payments has fallen by 35,000 or 35% in last 12 months, new research shows.

The improvement means that 98.5% of private sector tenants now avoid significant rental arrears, according to the latest Tenant Arrears Tracker report from LSL Property Services.

Overall some 67,000 households remain more than two months behind on rent but this is compared to 102,000 in the second quarter of 2013.

Most recently the number of tenants in severe arrears has dropped by 0.2%, between the first three months of 2014 and the second quarter of the year.

As a proportion of all tenants, those in serious arrears of more than two months has also improved, standing at 1.5% in the second quarter compared to 2.2% in the second quarter of 2013.

Improvements in serious rental arrears tally with the latest figures on overall rent arrears, of any duration. According to LSL’s latest Buy to Let Index, overall tenant arrears now stand at just 7%, as of May 2014, down from 8.2% in May 2013.

‘Private renting has absorbed enormous pressure and will continue to do so. For over half a decade, our national aspiration to own our own homes has struggled in the face of the longest economic crisis on record. And in the midst of this, private renting has provided a solution,’ said Paul Jardine, director and receiver at Templeton LPA.

‘Certainly, some households succumbed to the wave of unemployment that followed the 2008 crisis, and as the broader monthly squeeze tightened its grip. For a time, though still for only a small minority of tenants, there was a significant rise in serious rental arrears. But now as the jobs market gradually comes back to life, the effect on the most hard pressed of households is clear to be seen,’ he explained.

‘While wages are yet to pick up significantly, those in the most serious financial problems often face a lack of any earnings at all. So as the risk of unemployment retreats this year, those with serious problems paying their rent, and most at risk from losing their homes, are benefiting the most,’ he added.

However, the report also shows that despite fewer tenants falling into the most severe arrears, the number actually facing eviction, while significantly lower in absolute terms, has continued to rise. As of the first quarter of 2014, some 33,000 tenants are facing potential eviction via court order, up 5.9% from the fourth quarter of 2013. On an annual basis this leaves evictions levels 10% higher than in the first three months of 2013.

Meanwhile, landlords have continued to benefit from both the improving financial position of tenants, and a beneficial mortgage market. Landlords’ own mortgage arrears have fallen for the sixth successive quarter, with just 14,700 buy to let mortgages in arrears in more than three months in the first quarter of 2014, down 10.9% from the previous quarter. On annual basis this means…

Residential property sales in Canada increased by 0.8% in June compared to the previous month, the five monthly rise in a row, taking transactions to their highest level since March 2010.

The data from the Canadian Real Estate Association (CREA) also shows that national average price for homes sold in June was $413,215, up 6.9% from the same month last year.

Sales rose in about half of all local housing markets in June, led by gains in Greater Vancouver where activity hit its highest level in more than three years, and Montreal where activity is now 10% above post-recession lows reached earlier this year.

Actual, not seasonally adjusted, activity in June stood 11.2% above levels reported in the same month last year. June sales were up from year ago levels in three out of every four local markets, led by Greater Vancouver, Fraser Valley, Calgary, Greater Toronto and Hamilton-Burlington.

While prices are up almost 7% on a year ago, the report points out that the national average price continues to be skewed upward by sales activity in Greater Vancouver and Greater Toronto, which are among Canada’s largest and most expensive housing markets. Excluding these two markets from the calculation, the average price is a relatively more modest $336,164 while the year on year increase shrinks to 5.2%.

Year on year price growth varied among local housing markets tracked by the index, with the biggest gains having been posted by Calgary with a rise of 10.74%, Greater Toronto up 7.77% and Greater Vancouver up 4.37%.

Two storey single family homes continued to post the biggest year on year price gains with an increase of 6.19%, followed closely by one storey single family homes up 5.35% and townhouses up 5.07%. Price growth for apartment units remained comparatively more modest 3.85%.

The number of newly listed homes changed little in June, having eased by 0.1% compared to May. In May, new listings reached their highest level since April 2010. On an actual, not seasonally adjusted, basis, new listings set a record for the month of June.

‘At least some of the recent burst in new supply reflects the slow start to the year, when a harsh winter caused many sellers to delay listing their home in many parts of the country,’ said Gregory Klump, CREA’s chief economist.

‘In markets with tight supply and strong demand, the strength of sales in recent months reflects how many properties were snapped up once they finally hit the market. Because the impact of deferred listings and sales has likely run its course, activity over the second half of the year may not be able to maintain the kind of pace we’ve seen over the past couple of months,’ he added.

The national sales to new listings ratio was 53.6% in June, up slightly from 53.2% in May but still well entrenched within the range between 40 and 60% that marks balanced market territory. Just over half of all local markets posted a sales to new listings ratio…

Skills shortages and increasing delivery times for certain materials have become substantial constraints on construction activity, surveyors are warning.

The latest construction market survey form the Royal Institution of Chartered Surveyors found that 51% of surveyors say skills shortages are curtailing activity and 58% cited materials shortages as an impediment to growth. A year ago these figures were just 7% and 5% respectively.

Some 54% of firms have had difficulties recruiting quantity surveyors and 59% have struggled to find bricklayers. This compares to 19% and 7% who were noticing shortages in these roles last year.

Surveyors have also noticed changes in the behaviour of contractors. Marc Menear from the Bristol office of Faithful+Gould said: “Contractors appear to be coming more selective over which projects they tender for.”

Jonathan Park of Harrogate-based Appleyard & Trew commented: “Contractors are at capacity on enquiries and struggling to submit tenders with periods set.”

Anthony Millward of Allan Reynolds Partnership in Wolverhampton said: “Shortage of bricks and bricklayers are a problem. As contractors are getting busier we are finding their management resources can't cope. This is impacting on preplanning and seriously affecting progress on site.”

The Q2 2014 RICS construction market survey shows a continuing improvement in activity across all areas of the UK, with the private sector leading the way. The headline national workloads net balance, which captures the change relative to the previous quarter, softened only marginally from Q1’s record high of 43 to stand at 41 for Q2.

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The private housing, commercial and industrial sectors are driving this growth in workloads with the individual balances for each of these sectors also moderating only slightly from the series high values recorded in Q1.

The private housing sector has been the main driver of the recent growth in the official construction output data and the continued strength of the RICS private housing workloads series, which recorded a value of 41 in Q2, shows that momentum in this sector remains strong.

The net balance of private commercial workloads came in at 51 in Q2, from Q1’s series high value of 55, and as with the private housing sector, workloads grew robustly across all areas of the UK that we monitor. In the industrial sector, the workloads net balance recorded a value of 38 in Q2, down slightly from Q1’s reading of 40.

Workloads grew strongly across all broad regional blocks with the Midlands region in particular seeing workloads rise at a record pace. Scotland and Northern Ireland have generally experienced more moderate growth in activity than the other areas of the UK over the last year but workloads have, nonetheless, been consistently rising, RICS said.

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Almost half of all tenants in the prime London property market are renting due to employment relocation as the city attracts companies from around the globe, according to a new analysis.

This demonstrates the increasingly important role of corporate demand in the prime rental markets across world cities, says the report from international real estate firm Savills.

Traditionally, the financial and insurance services sector has dominated the corporate relocation market with 50% of tenants working in this area in 2007. But in the aftermath of the financial crisis they now account for just 39% of the market, signifying the shifting nature of employment in the capital.

In its place there has been a rise in the number of technology industries locating in the capital, facilitated by the development of ‘Tech City’ in the east and the recent regeneration of King’s Cross.

‘London attracts companies from around the globe and remains one of the world’s most important centres for global commerce. Consequently, we have a diverse range of different tenants from all business sectors looking to relocate to areas throughout London,’ said Matthew Salvidge, the firm’s head of Corporate Services.

Over the next five years it is estimated that there will be an additional 368,000 employees in London, and around 25% of these will be accounted for by the technology industry. It is set to become the largest industry in central London, and growth in the sector across the UK will outstrip that of California’s ‘Silicon Valley'.

Compared to employees in the financial and insurance industry, who from 2007 to 2013 increased by 6%, underperforming the London average of 10% growth, tech industry employees grew by 19% over the same period.

The latter, however, have on average 25% less budget when relocating and the report points out that this disparity naturally impacts on where they choose to live in London, resulting in a locational shift.

The tech industry has traditionally been concentrated around Old Street and has dispersed outwards from there. Consequently, areas such as Highbury and Islington have benefitted from a rental perspective, with 22% of employees living in these areas working in the sector. This is due to their easy accessibility from the core technological hubs and excellent transport links.

Areas surrounding and easily commutable to King’s Cross, the location of Google’s new headquarters, are likely to enjoy similar success and Savills predicts a 9% increase in office based employment here by 2018. Financial services employees on the other hand prefer living in prime central London locations such as Chelsea or near to their work, in Wapping.

By 2018, while the number of employees in the financial and insurance sector in central London is forecast to remain the same, employees in the professional, scientific and tech industry are set to increase by 16%, making it the largest industry in central London according to Oxford Economics.

‘As the tech industry continues to expand, this extension in popular locations will continue and the demand for rental properties suitable for corporate relocation tenants…

The demolition of an eight-storey office block next to Hounslow bus garage in west London appeared to go out of control yesterday afternoon when a huge section came crashing down, leaving the remaining structure unsafe.

Reports suggest that it cause quite a stir across the vicinity.

The building, in Hounslow High Street, is being demolished to make way for a housing development.

According to Demolition News, Lincolnshire-based contractor GBM Demolition suspended work pending arrival of an inspector from the Health & Safety Executive to investigate the unplanned collapse.

It appears to have been only through good fortune that all debris remained within the perimeter of the site and no one was hurt.

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House prices in Scotland increased by 0.5% in May, but sales fell by 3% probably due to the marketing adjusting to new mortgage rules, according to the latest monthly index.

Year on year prices have climbed 4.3%, or £6,750, to an average price of £162,302, the LSL Property Services/Acadata index also shows.

It points out that May marks longest period of sustained monthly price growth since before the economic crisis and the property market recovery has strengthened across the country, with a new price record being set in Aberdeenshire.

‘We are now seeing the longest sustained period of price growth in seven years. Prices have not climbed so steadily every month since December 2007,’ said Donald MacLellan, chairman of Walker Fraser Steele Chartered Surveyors, part of LSL Property Services.

‘Not only this, but growth has put down roots across the country, with 87% of the local authority areas in Scotland enjoying annual average house price rises. In May a new record house price was reached in Aberdeenshire, taking the cost of an average home to £224,803,’ he explained.

He pointed out that first time buyers provide a solid foundation for the recovery to continue building on.’ In the three months to May 2014, the number of flats sold rose 26% on the same period last year, followed by terraced houses with a 22% annual increase in sales. As the typical property choices for first time buyers, this illustrates the stream of activity at the entry level of the market powering growth and consumer confidence,’ said MacLellan.

He also said that the 3% fall in sales goes against the historic seasonal trend for this time of year, suggesting that tighter regulations under the Mortgage Market Review have temporarily slowed housing transactions.

‘But with recurrent indications that interest rates will rise before the year is out, new record property prices being set, and only three months to go before the independence referendum, potential buyers may also be taking heed of caution and delaying purchase decisions until they can be clear what the future holds,’ he commented.

‘Whether this monthly blip is symptomatic of a broader turning tide in the housing market remains to be seen, as it is still too early to see. More changes are afoot, with greater stress testing and loan to income caps coming into play to ensure the long term health of the property market,’ he said.

He also pointed out that the Bank of England or the UK government intervening further in the property market to rein in housing demand is not necessary in many parts of the UK, and could pull the rug out from under the feet of recovery in areas where growth is still bedding down.

Prices are not rising everywhere. In the city of Glasgow house prices dropped 3.1% in the month to May 2014. ‘The Help to Buy scheme and further investment into new housing developments are a lifeline in areas such as these to consolidate growth,’ added MacLellan.
…

The future of ambitious proposals for a new airport in the Thames estuary is set to be determined in the autumn.

That is when the Airport Commission will decide whether to keep this option in the mix or throw it out.

The government established the Airports Commission in September 2012 to advise on the need for and location of future runway capacity. Its interim report in December 2013 set out three options – two at Heathrow and one at Gatwick – and called for further consideration of the Thames Estuary option.

Since then, promoters of shortlisted options have provided more detailed proposals to the commission. This autumn, the commission expects to decide whether or not to shortlist an estuary option, and will then undertake formal consultation on the shortlisted options.

The final report will be published in summer 2015, by which time it will be up to a new government to make any decision.

House sales transaction levels in central London’s prime property market are down 45% compared to June 2013, according to a new report.

The volume of transactions is concerning as the market slows down for the summer months, says the analysis report from W. A. Ellis.

It is probably due to buyers are adopting a 'wait and see' approach for political and economic reasons, said Richard Barber, partner at the estate agency.

‘We've seen a 25% reduction year on year in sales at all price ranges across our prime central London areas of Belgravia, Chelsea, Knightsbridge, South Kensington, Mayfair, and Kensington,’ he pointed out.

‘For instance, in June 2014 only 185 properties were sold, compared to 249 properties in June 2013. It is the underlying reduction in the volume of transactions which is of most concern as we enter the traditionally slower summer quarter,’ explained Barber.

The agency said that the proportion of sales under £2 million has also reduced, but only marginally from 67% to 62%. ‘However, when one looks at the actual number of sales, a more disturbing trend emerges, namely that only 115 flats have been sold in June 2014 beneath £2 million and perhaps the most frightening statistic of all is that only 27 houses were sold in June, whereas last year 49 were sold, a reduction (in transactional terms) of nearly 45%,’ said Barber.

‘The underlying factors are very apparent to close observers of the market; the combination of mansion tax threats, higher stamp duty, ATED and the fear of a Labour government is having a cooling effect on the market in general, but is particularly swingeing within the family house market,’ he explained.

‘There are currently 374 houses for sale within our chosen areas and approximately 92% of them have a price tag in excess of £2 million so it is not entirely surprising that the transaction level is lower,’ he added.

He pointed out that arguably, there is also value to be found as many of these properties offer greater floor area, albeit spread over four to five floors, gardens, patios and better bedroom accommodation.

‘It is apparent, however, that the traditional buyer of these houses, buyers from northern Europe and the UK, are currently weighing up the situation both political and economic, and perhaps adopting a wait and see approach,’ Barber added.

‘What is clear is that keen vendors will need to adjust their expectations if they wish to find a buyer this summer. We have achieved 99% of our asking prices since January 2014 which underlines the importance of accurate and responsible pricing in a changing marketplace,’ he concluded.

ISG has promoted Paul Sharp to head its specialist technical fit-out operation in its UK Engineering business.

The move is part of the company’s plan to strengthen its delivery capability in technically complex fit-out projects within the healthcare and research & development sectors.

ISG has recently worked on specialist fit-out projects at Guy's Hospital in London for Cell Therapy Catapult and also a new research facility at the Natural History Museum. Paul Sharp is currently working on a new stem cell laboratory for King’s College London.

In his new role, Mr Sharp will lead ISG’s bid for opportunities in the forthcoming Medcity in London, which will collaborate with the universities of Oxford and Cambridge to form a world-leading bioscience cluster, where there is significant planned investment in R&D facilities and laboratories. He will also drive the roll out of ISG’s specialist fit-out business nationwide.

Mr Sharp said: “My new role represents a strategic decision by the company to capitalise on many of the world-class technical fit-out projects that ISG has delivered, creating a formal structure to take that expertise to the marketplace as a defined service offer. The success of the bioscience cluster in attracting ground breaking academic research and commercial scientific companies from across the world provides considerable opportunity for the business, with its strong credentials delivering highly complex and mission critical projects.”

Social housing organisations could save £285m a year in building repair and maintenance costs by improving their purchasing, a new study suggests.

The analysis of a range of social housing providers, undertaken by MindMetre Research, highlights that by re-engineering R&M materials purchase and management procedures, social housing organisations could stand to save £1.7bn in social housing R&M costs by the end of the decade.

The research was commissioned by builders’ merchant Travis Perkins.

The study, Material Advantage, looked at 95 housing associations and local authorities that have already addressed inefficiencies in this area, and found that partnering with an organisation to reduce their materials supply chain can enable housing authorities to improve efficiency and productivity with:

• Shorter supply chains
• Accurate stock levels, elimination of wasted time and better ‘first time fix’ rates
• Reduction or elimination of storage requirements
• Product standardisation, ensuring high quality materials at lower costs
• Improved management information on workforce productivity.

Ian Church, managing director of Travis Perkins Group Managed Services, said: “With social housing providers under continued pressure to do more with less, the smallest inefficiency can cause much larger issues for authorities.  Identifying the purchasing and management of R&M materials as a starting point, however, means housing associations can begin to address the issue.

“Partnering with an organisation that improves and shortens the supply chain presents a viable way for organisations to better meet budgets and reduce inefficiency. Bringing purchasing costs closer to the original supplier not only reduces costs, it also brings the benefit of product standardisation, which leads to high product quality and lower long-term costs. What’s more, the improved IT capabilities brought by partnerships like this enable better scheduling, reducing downtime and limiting gaps in between tenancies.”

Engineering firm Jacobs has been brought on board to project manage the construction of the Brighton i360 observation tower.

The 165m-high tower will carry passengers – up to 200 at a time – in a giant pod from bottom to top. It will be the tallest visitor observation attraction in the UK outside of London.

Effectively a vertical cable car, the pod will be elevated to a height of more than 137m, providing 360 degree views.

The i360 is described as a ‘vertical pier’ and is being erected on the sea front at the site of Brighton’s old West Pier. It will incorporate the restoration of some of the original pier, including the Victorian tollbooths. Parts of the cast iron supporting structure will be reused in the new visitor centre and an exhibition will enable visitors to learn about the pier's history. The cast iron structure offshore, known as the sea island, will not be affected – but the wreckage of the derelict pier on the beach will be removed.

The Brighton i360 is designed, engineered, manufactured and promoted by the team responsible for the London Eye. The originators and designers of Brighton i360 are husband and wife team, David Marks and Julia Barfield of Marks Barfield Architects. They conceived and designed the London Eye.

It will be operated by I-Xperience, headed by former London Eye commercial director Eleanor Harris.

Dr John Roberts designed the Brighton i360. He was the London Eye's principal engineer and is also director of operations for the UK Buildings business of Jacobs UK.

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Under the terms of its contract, announced yesterday, Jacobs is providing engineering design, project management, construction design management (CDM) coordination, and inspection body services.

The steelwork will be erected by Hollandia, who built the London Eye's steel structure. Hollandia is the Netherlands’ largest steelwork supplier.

The civil engineering contractor will be Mackley, a long-established local firm based in Shoreham-by-Sea.

The French company Poma will manufacture the i360 pod and ride computer. Poma built the London Eye capsules and ride computer, and is Europe's largest cable car and ski lift manufacturer.

Jacobs Group vice president Bob Duff said the project was “expected to result in a truly unique and inspiring tourism experience in Brighton”.

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The government has announced plans to sell Constructionline, its online construction supplier database.

It said that private ownership would allow Constructionline “to grow and achieve its full potential, including offering new additional services”.

Constructionline was set up by government in 1998 to meet demand for a cost-effective and easy to use service for suppliers in the construction industry. Through its database of more than 22,000 suppliers, Constructionline links buyers with suitable contractors, ensuring supplier data such as health & safety, technical ability and financial information is kept up to date. Suppliers also benefit from access to more than 8,000 buyers.

It is owned by the Department for Business, Innovation & Skills (BIS) and managed on its behalf by Capita.

Constructionline collects supplier firms’ data on an annual basis and independently validates it. Supplier firms pay an annual fee for the pre-qualification service it provides. The level of the fee depends on the size of the firm’s turnover. These fees represent the main revenue stream for Constructionline.

A BIS spokesperson said: “Constructionline offers valuable services to the construction industry, particularly small and medium sized businesses. It has grown significantly under government ownership, and now is the time to enable it to expand further to meet the needs of a changing industry.

“Gaining access to private capital will enable Constructionline to become even more competitive and branch out into new markets.

“Bids will be welcomed from buyers who plan to grow the services provided by Constructionline.”

A trade sale is anticipated and a contract notice for the sale of Constructionline will be published in the Official Journal of the EU.

Half of all tenants in the UK feel a private sector landlord or letting agent has ripped them off with failure to get repairs done the top reason behind this feeling, new research shows.

With more people renting a home privately than ever before, the survey conducted on behalf of Ocean Finance has revealed a high level of dissatisfaction amongst tenants with the service they receive.

It also shows that 46% of tenants deal with their landlord directly, some 24% deal with both a letting agent and a landlord and 30% communicate only with a letting agent.

Renting is more prevalent among younger generations, with 52% of 18 to 24 year olds renting their home privately. Some 46% of 25 to 34 year olds rent and 22% of those aged 35 to 44.

When asked why they had felt ‘ripped off’ by their landlord or letting agent, the most popular reason given by disgruntled tenants was a failure to get repairs done, with 53% unhappy renters complaining of this. This was closely followed by delays in getting repairs carried out cited by 47%.

Other complaints voiced by tenants who felt their landlord or letting agent had ‘ripped them off’ included non-refund of the tenancy deposit, 37%, unreasonable deductions from the tenancy deposit, 25%, unreasonable increases in rent, 23%, and being handed unreasonable fees or charges to begin the tenancy agreement, 22%.

‘The English Housing Survey recently revealed that private renting has hit a peak of four million and has almost doubled since the 1980s. While many more of us are happy to live in rented accommodation, this survey suggests that at certain points in time we can be less than happy with the service provided by landlords and their agents,’ said Ocean Finance spokesman Ian Williams.

‘The biggest driver of dissatisfaction is the failure or timeliness of getting repairs done. If you are left without heating or hot water, for example, you have every right to expect the landlord or their agent to get it fixed promptly,’ he added.

A worrying picture of young British construction professionals has been painted by a new survey.

It strongly suggests that they care more about money than career prospects or feeling happy in their work. And more than half reckon they are underpaid.

These are the findings of a survey of more than 2,000 construction and engineering professionals under the age of 30 by recruitment website CareerStructure.com.

It found that 58% were not satisfied with their salary and 36% expect to leave their current employer within the next six months.

Some 54% said they were not satisfied with the benefits they received. They wanted a performance-related bonus and reckoned they should be paid overtime like manual workers.

On a more positive note, the majority were satisfied with their current promotion prospects, confident they were about to zoom up the career ladder, and more than half of them (56%) rated their employer as good or excellent – despite the money issue.

Rob Searle, commercial director at CareerStructure.com, said: “Young workers are the future of the industry so more must be done to convince them why construction and engineering are attractive professions.  The industry is facing an ongoing skills shortage, which means it’s now more important than ever to retain the best young talent.”

The top ten most important factors for young people in their career are:

1. Salary
2. Career prospects / Challenging Work
3. Job security
4. Recognition of work done
5. Training
6. Degree of responsibility
7. Relationship with colleagues
8. Holiday entitlement
9. Physical working environment
10. Fringe benefits

UK house prices increased by 10.5% in the year to May 2014, up from 9.9% in the year to April 2014, according to the latest index from the Office of National Statistics (ONS).

House price annual inflation was 11% in England, 6.5% in Wales, 3.6% in Scotland and 0.7% in Northern Ireland, confirming that price growth is now reaching the whole of the nation.

Overall house prices are increasing strongly across most parts of the UK, with prices in London again showing the highest growth. Indeed, annual house price increases in England were driven by a record annual increase in London of 20.1% and to a lesser extent increases in the South East of 9.6% and the East at 8.6%.

Excluding London and the South East, UK house prices increased by 6.4% in the 12 months to May 2014 and on a seasonally adjusted basis, average house prices increased by 0.8% between April and May 2014.

The data also shows that in May 2014, prices paid by first time buyers were 11.3% higher on average than in May 2013. For owner-occupiers prices increased by 10.1% for the same period.

David Newnes, director of Reeds Rains and Your Move estate agents, owned by LSL Property Services, pointed out that the housing market recovery continues to seep across the country beyond the capital.

‘Consumer confidence is travelling further afield, but a balanced view has to be taken as some regions of the country have seen very little house price growth. Places like Lancashire and York are still experiencing annual growth below 1%,’ he explained.

He also pointed out that there are also new signs that growth is beginning to slow. ‘In London prices have begun to fall at the upper end of the market, and the City of Westminster and the City of London have now seen house prices drop in the last 12 months. In four of the top five most expensive London boroughs, average house prices have dipped below their respective peak levels,’ said Newnes.

‘With new affordability regulations and stress tests tightening mortgage approvals, the Help to Buy scheme remains a crucial link in bolstering first time buyer demand and fuelling activity outside of London. Help to Buy may not be making a difference in London, where prices often exceed the upper eligibility limit, but it is a vital aid for aspiring home buyers in parts of the country where prices are still regaining ground lost during the recession,’ he added.

According to Paul Smith, chief executive officer of CEO of haart, the UK’s largest independent estate agent, recent statistics from the same government department show that nine of the 12 regions of the UK are still below their peak in January 2008.

‘This helps keep things in perspective. It’s a positive that house prices are continuing to recover around the UK while London remains a law unto itself, but even here we are seeing prices tail off which is a good thing,’ he said.

‘More stock is coming onto…

New home lending activity in Australia is still trending higher with the latest figures from the Australian Bureau of Statistics showing it at its highest level for four years.

The seasonally adjusted number of loans for construction increased by 0.9% in May 2014 and was up by 3.1% in the three months to May, the ABS data shows.

Loans for the purchase of a new homes increased by 1.6% in May, but fell by 1.6% over the three month period. According to the Housing Industry Association, the voice of Australia’s residential building industry, it is an encouraging forward sign for new home building that the number and value of loans for both construction and new dwellings purchase headed higher.

‘Construction loans, the principal component of new home lending, are at their highest level in over four years. New dwelling commencements are on track to hit their second highest level on record in 2014,’ said Harley Dale, HIA chief economist.

‘It is also encouraging to see that lending for larger alterations and additions is moving higher since a low point reached in February. The market hit a decade low in 2013 and a turnaround this year would clearly be a desirable outcome,’ he explained.

‘With low interest rates and the recurrence of capital gains, there is the opportunity for the market to gather upward momentum,’ he added.

Over the three months to May 2014 HIA’s seasonally adjusted estimate shows the number of loans for new housing in New South Wales rose by 2.1%, by 0.6% in Victoria, by 7.6% in Queensland, by 8% in Western Australia and by 13.8% in Tasmania.

Over this three month period the number of new housing loans fell by 4.4% in South Australia, by 9.9% in the Northern Territory and by 12.4% in the Australian Capital Territory.

The number of homes in the UK that entered the market for sale valued at over £500,000 rose by 30% in the second quarter of 2014, the latest Experian property index shows

Homes in the second highest price band of £250,000 to £500,000 increased by 16%. This is the highest level since 2010 for both price bands.

The data also shows that in the second quarter of 2014 homes worth more than £250,000 made up 41% of all the homes that entered the market for sale compared to 37% in the same quarter of 2013.

Overall, the number of properties to enter the market for sale between April and June 2014, increased by 9.6% compared to the same period in 201 and this rise was led by the North East region which saw the number of houses coming to the market for sale increase by 25.6%.

The only area in the UK that witnessed a fall in numbers was the East of England, which found the number of homes coming on to the sales market decreased slightly by 2.6%.

The rise in the over £500,000 was, led by the London region with an increase of 50.7%. This was followed by the Outer Metropolitan and South West areas.

The West Midlands appeared among the areas to see the highest increase in properties with more than £500,000 coming onto the market for sale with a rise of 25.5% and the North East continued to see the most affordable properties worth less than £100,000 entering the market with a rise of 33.6%.

The rental market, which had been seeing a steady growth each quarter, saw fewer newly advertised properties coming onto the market for rent, down 4.3% across the UK compared to the second quarter of 2013.

The fall was led mainly by the Outer Metropolitan and South East areas which were down 10.5% and 8.8% respectively. The North East and Wales were the only areas to continue to see a growth in rental properties, up 4.3% and 1.8%.

‘The growth in houses prices suggests that home owners may have made reasonable capital gains on their existing properties, especially as they seek to move up the property ladder,’ said Jonathan Westley, managing director of Consumer Information Services at Experian UK and Ireland.

‘Our latest index shows that higher end properties now form a greater proportion of properties appearing for sale, implying it is now second or third time buyers, who are more active in the housing market. But, 59% of all properties across the UK were still valued at less than £250,000 so there are opportunities for those with smaller budgets,’ he explained.

‘The challenge for people wanting to secure a mortgage is showing themselves in the best possible light to lenders, i.e. applicants who can afford the long term commitment, especially with an interest rate rise looming. Lenders have just as an important role to play ensuring they are not making decisions that could see a person fall into debt in…

The government is claiming to have made 15% efficiency savings in its infrastructure bill, cutting £3.4bn of expenditure.

By working with Infrastructure UK and the Infrastructure Client Group, which is led by HS2 construction chief Simon Kirby, best practice in procurement has been promoted across government departments, it is claimed.

The £3bn figure is contained in the third annual report of the Infrastructure Cost Review programme – Infrastructure Cost Review: Measuring and Improving Delivery  (Click or tap to download full report).

The biggest savings have been found in the energy sector, as the table below shows.

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However, some of the energy cost reduction has come from nascent renewables technologies maturing and becoming cheaper, like solar panels and wind turbines.

Savings attributed solely to the cost review programme are £2.5b, or 13%.

On the railways, Network Rail’s cost reduction benchmarks demonstrate that it has achieved a 13.1% saving on £4.7bn works programme, equivalent to £615m annual saving.

The roads sector has made 9% savings on annual local authority highways turnover of £2.8bn equating to £257m. The Highways Agency has found £221m of savings on its £1.3bn capital works programme, a saving of 17%

The initial Infrastructure Cost Review in 2010 set out a series of actions to change the behaviour of government clients and industry that would support a 15% reduction in the costs of infrastructure delivery. This, it is said, has now been achieved but more can be done.

The report says that there is an opportunity to deliver more than £50bn of further efficiency savings over the next decade.

Alongside today’s report, the Treasury has published a Project Initiation Routemap Handbook. This provides a framework to address common problems in infrastructure projects.

Commercial secretary to the Treasury, Lord Deighton, said: “Successive governments have failed to invest sufficiently in the UK’s infrastructure. By dealing with our debts and having a long term vision as set out in the national infrastructure plan, we can deliver the world class infrastructure the UK needs to compete. Delivering infrastructure investment more efficiently is vital to ensure that taxpayers and consumers get more for less.

“The Infrastructure Cost Review programme has helped to establish a refreshed relationship and more open dialogue between government and industry. This has been a success for the third year running. However, we cannot be complacent. As the economy recovers, we will redouble our efforts to ensure that we have the necessary skills, capacity and innovation to embed cost and efficient delivery.”

A roofing contractor has been given a suspended prison sentence after his work on a chimney stack left an elderly couple exposed to deadly fumes.

John Stanley had been hired to sort out a water leak between a double chimney stack and roof tiles by householders at a property on Black Swan Lane, Luton in August 2011. However, his team’s repair work blocked the chimney above a gas fire, leading to poisonous fumes leaking into the loft.

The Health & Safety Executive (HSE) prosecuted and Mr Stanley was up before Luton magistrates yesterday. The court heard that employees of Mr Stanley, 47 and from Luton, had dismantled the old double chimney to just below roof tile level and made some repairs to roof timbers and felt. They then built a single chimney stack back up.

But they failed to check that the flue for the gas fire in the property’s back living room was still working. It later emerged that it was this chimney that was blocked when the stack was rebuilt instead of the chimney of the disused and boarded-up fireplace in the property’s front living room.

The householders only found out about this 15 months later when they had to call a local gas man to examine the gas fire, which they were having trouble lighting.

A subsequent investigation by HSE found that the gas fire had been used for more than a year with all the fumes going into the loft, over their bedroom, instead of through the flue and chimney – leaving them at serious risk over an extended period of time. A simple smoke test would have highlighted the issue straight away after completion of the work.

John Stanley, of Hitchin Road, Luton, trading as King Roofing & Durable Plastics, pleaded guilty to a breach of Section 3(2) of the Health and Safety at Work Act 1974. He was given a four-month prison sentence suspended for two years, and ordered to pay £500 compensation to the couple he put at risk.

HSE inspector Robert Meardon said after the hearing: “John Stanley’s sub-standard work created an on-going breach and a prolonged risk to the safety of a vulnerable and elderly couple. It cost them a huge amount of unnecessary anxiety and a considerable amount of money to rectify – on top of their savings they had used to pay Mr Stanley for the work.

“When a chimney is the flue for a gas fire, it is a vital part of the gas installation and should only be done by a competent gas engineer on the Gas Safe Register.

“Mr Stanley advertised himself as a specialist roofing contractor, but he was never on the Gas Safe register and not qualified to carry out gas work. He should have never undertaken this job knowing that a gas fire was linked to the chimney.

“This incident could have resulted in fatalities as gas fire fumes can contain poisonous carbon monoxide, which can kill. It is vital that building contractors are aware of the risks they create and comply with the laws in place to control the risks.”

Many property buyers or current home owners in the UK haven’t even heard of the government flagship Help to Buy scheme, new research suggests.

Others have admitted to hearing the name but not knowing what it was, according the survey carried out by removals company Bishop’s Move.

Nationally some 22% don’t know about the scheme but there are regional variations. For example, 25% of home owners and current buyers in the North East hadn’t heard of Help to Buy while only 7% in Yorkshire and 6% in the West Midlands had done so.

A further 28% in the South West and 26% in Yorkshire also admitted to hearing about the scheme but not realising what it was.

Overall just 3% said they were fully aware of Help to Buy’s benefits and have used or knew someone that has used the scheme whilst 52% said they were aware that it was helping first time buyers onto the property ladder.

‘Help to Buy has certainly been making the headlines for some time there are yet pockets of home owners and property buyers across the UK that remain completely unaware of the scheme,’ said Chris Marshall, sales and marketing director at Bishop’s Move.

‘In areas such as the North East, where the property market is somewhat stagnate, it is a worrying statistic that over a quarter of those surveyed haven’t even heard of Help to Buy,’ he pointed out.

‘In order to improve local economies through the housing market, more needs to be done from a regional perspective to ensure people are fully aware of the many benefits Help to Buy can bring,’ he added.

The research also found that over 15% of 18 to 24 year olds think the Help to Buy scheme is a recently launched face to face, personal shopping service by the major supermarkets for over 60s and 11% believe the Help to Buy scheme is a new web service to help online traders shop more securely on sites such as eBay.

In fact less than half of 18 to 24 year olds, 42%, agreed that Help to Buy is a government scheme to help first time buyers onto the property ladder and it isn’t until you reach over the age of 45 years that people fully understand what the scheme is. Some 85% of those aged 45 to 54 and 94% of those aged over 55 knew exactly what Help to Buy is.

'With Help to Buy targeted towards first time buyers, 18 to 24 year olds is a key demographic for the scheme. However, these stats will prove alarming for government officials who are relying on Help to Buy to ensure people fulfill their ambitions of owning a property,' said Marshall.

'It is a concern to see that is isn’t until you reach over the age of 45 where people know exactly what Help to Buy yet this demographic is very likely to be filled with property owners already. Clearly…