Industry partners working with the Combined Heat & Power Association (CHPA) and Chartered Institute of Building Services (CIBSE) have published a draft standard for the development of district heating.

A public consultation was launched yesterday to give an opportunity for the wider industry and stakeholders to provide comment and input. The overarching aim is for the standard to ensure the conception, design, build and operation of efficient, cost-effective district heating for all users.

CHPA director Tim Rotheray said: “District heating is focussed on delivering value for the consumer, putting them at the centre of a more local, more efficient energy system. It is because of that value that more than 50 local authorities are considering new district heating investments, contributing to Government’s ambitions for heat networks to go from 2% to 14% of UK heating demand by 2030.

“If we are to meet that ambition, with district heating expanding to urban areas all around the country, we need to ensure these investments are being installed and operated with only the highest of standards so that the consumer sees the clear benefits this energy efficiency infrastructure can provide.”

Phil Jones, chair of the code of practice steering committee and the CIBSE CHP-DH Group, said: “The introduction of minimum standards for heat networks will be a step change in taking this sector to the next level. We are already working on supporting this with training, accreditation and registration of heat network professionals to implement the standards and enhance the quality of district heating from design through to operation.”

Information is available on the CHPA and CIBSE websites and the consultation runs until 9 October 2014.    

The Association of Plumbing & Heating Contractors (APHC) and Severn Trent Water are piloting a scheme to enable approved contractors to report any high-risk plumbing work they come across.

Upon receiving a defective work report from a WaterSafe approved contractor, Severn Trent Water will inspect the work. It has the statutory power to ensure contraventions of the relevant regulations are addressed.

John Thompson, CEO of APHC, said: “Plumbing contractors do not currently have an effective means of reporting high-risk defective installations in properties, which inhibits potential enforcement actions and also fails to address companies persistently breaching the requirements of the Water Supply (Water Fittings) Regulations 1999.

“We believe there is a unique opportunity through the WaterSafe initiative to bring plumbing contractors and Water Companies together, to better tackle the issue of high-risk defective work. This pilot initiative has great potential to tackle issues of enforcement and to bring about better regulation of defective work.”

The pilot project is being run through a select number of APHC and WaterMark plumbers operating in the Severn Trent Area and the project will conclude later in the year. If successful, a full reporting arrangement will be rolled out across all WaterSafe scheme operators and water companies.

The number of new homes being registered across the UK remains slightly ahead of corresponding statistics for last year according to new figures from NHBC, but there were considerable regional differences.

The latest statistics show that 38,099 new homes were registered for the rolling quarter May to July, compared to 37,738 for the same period last year.

But there were marked regional differences, with more than 10% of all the new homes registered being located in the East Midlands area, where the number jumped almost 55% to 3,984 from 2,571. The number fell the North East, Merseyside, Eastern, South West, Greater London and South East areas. Registrations in Scotland fell from 2,762 to 2,454 but there were rises in both Wales and Northern Ireland.The latest statistics show that 38,099 new homes were registered for the rolling quarter May to July, compared to 37,738 for the same period last year. This represents an increase of 1%, building on the strong growth seen throughout the country over the last 18 months.

The overall figure of 38,099 represents an increase of 1%, building on the strong growth seen throughout the country over the last 18 months.

The private sector continues to drive overall growth with numbers up nearly 7% for the rolling quarter compared to last year (28,861 this year; 27,028 last year) with the public sector remaining down on 2013 levels by 14% (9,238 this year; 10,710 last year).

Figures for July indicate a slight drop when compared to the same month last year (13,153 this year – 10,278 private sector; 2,875 public versus 13,539 for July 2013; 10,300 private; 3,239 public), although it is the second highest monthly total so far this year.

NHBC’s chief executive Mike Quinton said: “Our latest statistics continue the trend seen during the year to date, with monthly volumes remaining steady and consolidating on last year’s overall levels. As we have stressed in the past, this recovery has been from a historically low base, so the industry must continue to work hard to meet the demand for more new, quality homes.”

Specialist commercial fit-out business Corporate Interiors LLP has gone into administration.

The business, which operates from Hother Green Lane in SE13, says that its client base covers the length of the UK, Europe and beyond. It carries out refurbishment and fit-out projects, furniture consultancy and supply contracts, relocation projects and bespoke interior design services.

Previous contracts have included refurbishing three floors of Anglo Irish Bank’s building in Westminster while ensuring the 200 employees were able to continue working throughout the process.  

The administrators are Steven Leslie Smith and Christopher Laughton of Mercer & Hole, Fleet Place House, 2 Fleet Place, London, EC4M 7RF.

A West Midlands scaffolder has received a four-month prison sentence suspended for 12 months and been ordered to pay £2,500 in compensation after another worker suffered a fractured skull when a pulley wheel fell 7m.

Birmingham Magistrates’ Court heard 27-year-old Mark Jones, from Darlaston, was installing lead flashing on a school roof using lifting equipment installed by Christopher Alan Harvey, trading as Cannock Wood Scaffolding , when the incident happened on 8 August 2013.

Jones, who was working for a subcontractor on the site, was operating a ‘gin wheel’, or metal pulley wheel, which is used to hoist and lower materials with ropes. The wheel had been attached to the scaffold by Christopher Harvey.

As Jones was loading materials from the ground ready for lifting to the roof, the 4kg wheel fell 7m from the scaffold and struck him on the head, fracturing his skull. He has since made a full recovery.

A Health & Safety Executive (HSE) investigation found that Harvey had failed to properly secure the gin wheel to the scaffold – no scaffold fittings were used to prevent the gin wheel from falling off the end of the scaffold tube, and the supporting structure was inadequately braced.

Christopher Alan Harvey, 40, of Wolverhampton Road, Cannock, West Midlands, pleaded guilty to breaching Section 10(1) of The Work at Height Regulations 2005 and received a four month prison sentence suspended for 12 months and was ordered to pay Mark Jones compensation of £2,500, plus £527.56 in costs.

Speaking after the hearing, HSE inspector Edward Fryer said: “This incident was entirely preventable and could easily have been avoided had Mr Harvey followed the published guidance to attach the wheel securely. Gin wheels are a common accessory for scaffolders and must be attached correctly. The installation of this gin wheel fell far short of the expected standard and made it almost inevitable that it would fall from the scaffold endangering anyone walking beneath.

“Mr Jones suffered a fracture to his skull, but it is nothing more than luck that he was not more seriously injured, or even killed.

“If you are installing scaffolding or associated lifting equipment, it must be left in a safe condition. The quality of work could make the difference between life or death.”

Mortgage lending in Wales in the second quarter of 2014 remains driven primarily by lending for house purchase, with first time buyers in particular showing strong year on year growth, according to the latest figures.

In the second quarter, there were 3,300 first time buyer loans in Wales, some 32% up on the previous quarter, and 27% up on the same quarter of 2013. First time buyers in the period borrowed £340 million, up 31% on the previous quarter, the data from the Council of Mortgage lenders shows.

The data also shows that there were 3,500 home mover loans in the second quarter, up 17% on the previous quarter and 9% more than in the same quarter of 2013 while the total value of these loans was £440 million, up 16% on the first quarter and up 13% on the second quarter 2013.

Remortgage lending in the quarter declined in Wales compared to the previous quarter and the same quarter in 2013.

House purchase lending to home buyers increased quarter on quarter in Wales totalling 6,800 loans, up 24% compared to the first quarter and the value of these loans totalled £790 million, a rise of 23% on the first quarter. Compared to the second quarter of 2013, the number of loans increased by 17% and value of these loans increased by 23%.

First time buyer affordability changed fractionally, with first time buyers typically borrowing 3.23 times their gross income, which was less than the UK average of 3.46 and slightly changed from 3.24 in the first quarter.

The typical loan size for first time buyers was £99,000 in the second quarter, up from £98,000 in the previous quarter. The typical gross income of a first time buyer household was £30,400 compared to £30,100 in the first quarter.

The relatively low level of interest rates saw first time buyers' payment burden remaining relatively low in the second quarter at 18.2% of gross income being spent to cover capital and interest payments, a smaller proportion of income than the 19.4% UK average and slightly changed from 18.3% in the first quarter.

In the second quarter of 2014, lending to home movers showed similar growth patterns in Wales to first time buyer lending although at a slower rate of growth. Home mover affordability changed fractionally, with home movers typically borrowing 2.82 times their gross income compared to 3.09 for the UK overall and 2.74 in the first quarter.

The typical loan size for home movers was £117,900 in second quarter, up from £112,500 in the previous quarter. The typical gross household income for home movers was £42,240 in second quarter compared to £42,000 in first quarter.

Home movers' payment burden remained relatively low in Wales at 17.2% of gross income being spent to cover monthly capital and interest payments, less than the 18.7% UK average and 17.3% seen in the first quarter.

Remortgage lending in Wales declined both quarter on quarter and year on year….

Student accommodation developer and manager Unite has reported earnings up 34% in its half-year results for the six months to 30 June.

Government policy increasing funded places for 2014/15 and removing the cap on 2015/16 places is expected to translate into higher student numbers in the coming years, said Unite.

The 34% rise in its earnings took the total to £20.4m from £15.2m for the same period last year. The company said that it is on track to achieve like-for-like rental growth of at least 3% for the full year, with reservations for the 2014/15 academic year currently at 92%, compared to 90% at the same time last year.

Its portfolio has grown through securing contracts for four regional development projects totalling about 2,300 bed spaces for delivery in 2016. Two further development projects have been secured under lock-out agreements and are expected to total approximately 1,000 bed spaces. Planning consents have also been achieved on London projects comprising 1,600 bed spaces for delivery in 2016.

Unite Group chief executive Mark Allan said: “Our strategy is underpinned by three key priorities: to be the most trusted brand in our sector, to maintain the highest quality portfolio and to have the strongest capital structure. We continue to make excellent progress and are confident about our ability to deliver our strategy against a strong market backdrop.”

Unite provides a home fro 43,000 students in 130 properties in 23 UK university cities.

Property prices in Spain's luxury real estate markets have continued to remain steady over the past six months, according to the latest half yearly analysis.

Figures from Barcelona based real estate agency Lucas Fox shows the number of transactions is increasing across all its regions as the gap between asking and sales prices continues to narrow.

International clients account for around 90% of all Lucas Fox sales, with interest from Far East and Middle East investors continuing to gain momentum. Following a slight dip in numbers over the past few years, Northern Europeans have returned in to the market, thanks to low prices and attractive investment opportunities.

The firm reports that in Barcelona there has been a steady upswing in sales in the first two quarters of 2014 compared to the same period last year. Northern Europe and UK buyers are still dominant but with increased interest from non-European investors, particularly from the Middle East and Far East

The Lucas Fox Barcelona office is currently generating approximately 30 offers per month, with approximately two out of every three being converted into sales and prime property sales price averages ended the second quarter of 2014 on €4,237 per square meter, slightly up on 2013

‘The Barcelona market has continued to improve in the first two quarters of 2014 and there is a great deal more confidence amongst buyers, in particular international buyers,’ said Lucas Fox cofounder Alexander Vaughan.

‘It looks like prices have now stabilised and the number of transactions is slowly increasing. The big change is that sellers are being more realistic and that asking prices have come down in line with buyer expectations,’ he added.

It also reports that the Ibiza residential market is continuing to perform strongly, with an increased number of transactions compared to the same time in 2013 and prices of premium properties in some prime areas are beginning to increase as demand outstrips supply.

Interest in prime market properties on Ibiza primarily comes from the UK and northern European buyers, however, interest from US buyers has doubled in the past year

‘The continued appeal of Ibiza is most definitely its unique lifestyle. More people are choosing to relocate to the island due to good schools, including international schools, outstanding properties and the exceptional quality of life,’ explained Amanda Marti, director of Lucas Fox Ibiza.

‘The island now offers 4G internet and better flight connections year round. Interest from Europeans is still high but demand has significantly increased from the Asian market, mainly Korean and Chinese buyers. There has also been a rise in interest from American investors,’ she added.

On the Costa Brava there has been significantly more movement in the property market in the opening two quarters of 2014 compared with the same period at any time since before the beginning of the crisis in 2006/2007, the report says, with most buyers being lifestyle investors taking advantage of market conditions and purchasing second homes with a…

House hunters in the UK may have a better chance of finding their dream home, with the average number of properties available for sale through estate agents up by 11%.

The monthly rise in availability is the greatest percentage increase in almost three years, according to the National Association of Estate Agents (NAEA).

Its July Housing Market Report shows that the average number of properties available for sale per branch increased from 46 properties in June to 51 in July, the highest number of available properties since November 2013.

At the same time, it says that competition among house buyers could be easing. The average number of house hunters registered per branch shrank from 371 in June to 368 in July, and has been declining month on month since April 2014.

However, the NAEA pointed out that the number of registered house hunters still remains significantly higher than the same time last year when only 250 house hunters per branch were recorded.

An additional positive for house buyers in July has been agreed sale prices. Some 66% of homes in July were sold for less than the asking price, a sharp contrast to May when only 46% of properties sold for less than the asking price. Also, only 4% of homes were sold above the asking price in July, compared to 19% in May.

The increase in housing supply and the steady decline in the number of registered house hunters could be a direct result of high stamp duty rates faced by many potential buyers, the NAEA report suggests.

Almost 90% of NAEA members said that stamp duty either frequently or occasionally deterred house buyers from moving and 92% believe the government should reform stamp duty land tax.

‘The lack of housing supply has been a significant issue over the last few months, so the sign of increasing stock is positive for the market and house buyers in search of their ideal home,’ said Mark Hayward, NAEA managing director.

‘Another positive for house hunters are the recent reports suggesting house prices are on the decline. Our report has found similar, with a significant amount of homes being sold at less than the asking price. This not only signals an appetite for movement in the market, but is also positive news for current house buyers, especially when faced with the prospect of potentially having to pay higher rates of stamp duty for higher priced houses,’ he added.

The report also reveals that the number of first time buyers in July remained static, accounting for 20% of sales, the same as June. However, despite decreasing house hunters and a stagnant first time buyers’ market, sales were unaffected, remaining consistent from the previous month with an average of nine sales per branch in July.

Two construction companies have been sentenced for safety failings after a worker was injured in a fall at a site near Canterbury in Kent.

The 46-year-old worker, from Tunbridge Wells, who does not wish to be named, fell through the fragile roof of a food packaging firm’s premises in Bridge after losing his balance on the working platform he was using.

He landed on the cold store roof nearly 2m below and suffered a broken rib and fractured left wrist, but has since recovered and returned to work.

The incident, on 4 October 2012, was investigated by the Health and Safety Executive (HSE) which prosecuted Ramsgate-based firms WW Martin Ltd and Brandclad Ltd.

Canterbury Magistrates were told that the food firm had used WW Martin for several years to undertake building work at their site so had appointed it to remedy leaks in the premises. WW Martin in turn hired specialist roofing firm Brandclad to carry out the work.

Before the repairs started, WW Martin was sent a risk assessment and a planned method of work by Brandclad highlighting the danger of the fragile roof and stating that platforms with handrails would be used, along with harnesses for workers.

However, HSE found that from the start of work on 22 September until a month later when the work finished, the platforms for the roofers were left open and unprotected.

Even when the Brandclad employee fell and work was suspended for 10 days to review what had happened, the only change made was to provide platforms that sat flatter and more evenly in the troughs of roof sheets. The safety measures that had been promised – handrails and harnesses – were never used by Brandclad. WW Martin, which was responsible for monitoring the work, failed to take any action.

Magistrates heard that HSE found both WW Martin and Brandclad had considered putting fall prevention measures inside the roof void but had decided against it because of doubts about the structural strength of the cold store roof.

WW Martin Ltd, Dane Park Road, Ramsgate, and Brandclad Ltd, Orchard Business Centre, North Farm Road, Tunbridge Wells, each admitted one breach of the Work at Height Regulations 2005.

Brandclad, stated by the court to be 60% culpable, was fined £7,000 with £3,588 in costs. WW Martin was fined a higher amount of £10,000 owing to its stronger financial position despite being 40% culpable, also with £3,588 in costs.

Speaking after the hearing, HSE inspector Melvyn Stancliffe said: “This was a completely avoidable incident. The dangers of working on fragile roofs are very well- known in the industry. Such work should never be undertaken without careful planning and making sure the right type of fall prevention and mitigation measures are in place.

“It is incredible the work was carried out despite the companies’ misgivings about the strength of the internal cold store roof. Had that given way when the worker fell on to it then HSE would likely have been investigating a death.

“Even after the incident, the job was resumed without any proper improvements made to the working methods. There should be no shortcuts when working on fragile surfaces – no matter how short the duration of a job is.”

Forest products company SCA has appointed Capita to advise on the potential for its 100 acre former paper mill site at Oughtibridge, Sheffield.

Capita will be undertaking a detailed review of the estate, which includes about 350,000 sq ft of industrial buildings and a number of houses.

The team will be speaking with the local planning authorities and other interested stakeholders as part of the commission and working alongside the SCA team, which has already been managing the decommissioning of redundant plant, equipment and buildings.

Capita said that it aims to find a solution that maximises the potential of the diverse brownfield site.   

West Midlands SMEs are being invited to a networking event to meet construction teams who design, build and run hospitals across the globe.

Local businesses are being invited to showcase their products and services to health sector chiefs, procurement leaders and senior design teams from some of the UK’s largest construction firms, who will converge in West Bromwich in October. Balfour Beatty, Carillion, Laing O'Rourke and Skanska are already signed up to exhibit.

A particular peg for the event is the recent announcement that a £353m flagship hospital – the Midland Metropolitan – has been approved for development in Smethwick.

‘Meet the hospital bidders’ is being co-hosted by Sandwell Council, Birmingham City Council and Sandwell & West Birmingham NHS Trust at the Bethel Convention Centre on 9 October.

Councillor Ian Jones, Sandwell Council’s cabinet member for jobs and economy, said the timing was perfect. “Our region’s supply chain is admired across the world. Collectively, our businesses are capable of providing every component and service required to design, build and maintain a 21st-century healthcare facility.

“‘Meet the hospital bidders’ will provide an excellent opportunity for local businesses to show their manufacturing prowess, engineering ingenuity and advancements in medical, science and built-environment technologies to the very people who will soon be looking to procure healthcare-related products and services,” he said.

The event will be opened by former CBI chief Lord Digby Jones. It will include the launch of the West Midlands Virtual Hospital (WMVH) – a 3D walkthrough digital hospital to showcase locally made components, products and services.  

National green field land values in the UK grew by 2.7% in the second quarter of 2014, bringing year on year rises to 9.8%, the highest rate of annual price growth recorded for three years.

The value of urban land increased by 2.1%, bringing annual growth to 8.5%, according to the latest data from property firm Savills and has been buoyed by strong rates of sale in the new homes market.

Momentum continues to build in the land markets across the country but towns in the London area have performed especially well as builders seek clean, edge of town greenfield sites, pushing prices back to their 2007 levels and beyond.

Brighton, Canterbury, Hayward’s Heath, Crawley, Oxford and Sevenoaks have all seen green field prices return to, or exceed, their pre-crunch levels. However, the national picture disguises distinct regional, and local, markets. In the south east, the best performing region, green field values are within 16% of their peak.

Even the north of England, the region where land markets suffered most severely in the recession, is now seeing sustained levels of land price growth. Annual price growth in green field land is up 13.8%, outperforming even the south east over the same period, although values remain half of their former highs. Buyers appear to be taking advantage of discounted prices during this window of opportunity, according to Jim Ward, Savills director of residential research.

He pointed out that recent price movements conceal a reduction in the value of affordable housing land, offsetting stronger growth in the value of land for market housing. Larger serviced green field sites in strong housing market locations are appreciating in value more quickly than their small site counterparts. This comes as house builders seek sites at scale to secure land pipeline while delivering at higher rates.

For example, some very large 2,000 plus unit strategic sites have traded this year, a sign of strengthened market conditions but not without government support. Sherford, a 5,500 unit new town in Devon, was supported by £32 million loan from the HCA’s Local Infrastructure Fund.

Small, oven ready sites are still in demand, however, driven by the requirements of recapitalised small and medium sized builders with growing market ambitions.

The report also shows that urban land continues to underperform green field land, recording more modest levels of quarterly growth for three successive quarters and remaining further from peak.

‘The viability of high density schemes are being increasingly squeezed by build cost inflation. That said, the south east saw comparatively strong urban land price growth in the second quarter at 3.3%, boosted by demand from buoyant housing markets close to London,’ said Ward.

‘With a rapid recovery in the new homes market and higher rates of build, material and labour shortages are putting pressure on build costs. According to the latest Home Builders Federation survey, the availability of materials, materials prices and labour costs were the fastest growing constraints on development in the first part of 2014. Meanwhile,…

Furnished flats in towns and cities provide the best rental returns for UK landlords as they appeal to young, mobile tenants, according to research from Countrywide.

There is an 8.1% premium for furnished flats and a 2.8% premium for furnished houses when compared to their unfurnished counterparts, says the latest report from the lettings agency.

The report also shows that in July, UK rents increased 3.7% year on year, with growth predominantly driven by outer London and it says that landlords are able to achieve greater monthly rental returns by knowing what potential tenants are looking for, letting furnished rather than unfurnished properties in key areas.

Typically towns and cities have a younger tenant population who have little or no furniture and are willing to pay a premium for it to be provided by the landlord. In rural areas typically there are more families who have accumulated their own furniture over time and in many cases are actively seeking unfurnished properties.

In some more affluent urban locations a landlord can expect to expect to achieve a third more in rent for offering a property furnished. This is driven by demand and a tenants’ willingness to pay a significant premium for high quality furnished accommodation.

There are a number of city centre locations where furnished properties make a big difference to the premium a landlord can achieve. The relocation of the BBC to Salford in Manchester has had an impact on the city’s rental market, with an influx of BBC employees willing to pay a high premium for furnished flats close to the corporation’s offices.

Also in seaside locations, such as Eastbourne, there are typically a higher percentage of elderly people who are willing to pay a premium for furnished properties in move-in condition. However, there are exceptions, particularly in less affluent areas such as Barnsley and Luton, where falling levels of home ownership amongst the young mean extended periods of time spent in the private rented sector.

In general, the locations where furnished property attracts a smaller premium tend to be areas outside regional city centres. These are typically expensive areas of central London, where the cost of furniture comprises only a small percentage of the rent and in more rural areas where there is a larger population of older families with children who are more likely to have their own furniture.

There continues to be a gentle growth in average monthly rents in England, Scotland and Wales in July 2014, with the average UK rent now standing at £898 per calendar month. The highest average monthly rent remains in central London at £2,503 per calendar month and the lowest in Scotland at £643 per calendar month.

In terms of property size, there has been a year on year increase in average monthly rents apart from three bedroom homes which have seen a 7.2% decrease year on year. One bedroom properties saw the greatest increase in rents, up 4.2% year on year and 1.5% month…

Average UK house price growth has exceeded all expectations over the past year, leaving some markets with reduced capacity for further mid term growth, according to a new report.

As a result international real estate adviser Savills has released a revised five year mainstream market forecasts taking account of growth seen in the first half of 2014.

The firm now expects average annual UK house price growth to settle at 9.5% this year, up from the previous 6.5% forecast. This will be followed by 4% growth in 2015 and 25.7% overall in the five years to the end of 2018, just fractionally higher than the 25.2% originally forecast.

The most notable changes to the published Savills forecasts are for mainstream London and, to a lesser extent, the corresponding markets in the South and East of England.

So far this year, house price growth in London, the South and East of England has significantly exceeded forecast, with all expected to end the year well into double digits.

Price growth in these mortgage-dependent mainstream markets remains high according to the majority of relevant indices, though there are signs that demand is weakening, with lead indicators suggesting a change in sentiment in London.

In London, full year growth is expected to settle at 15% against a previously published forecast of 8.5% despite an anticipated slowing in the second half of the year. While the five year growth forecast for the period 2014/2018 remains almost unchanged, the rate of recent growth will mean affordability will become stretched as and when interest rates rise.

The markets of the South and East of England were all originally forecast to show marginally higher levels of growth than London in 2014 at 7% but have in fact underperformed the capital to date. Nonetheless, they too are now expected to end the year in double digit growth.

These markets are still expected to show the strongest five year growth, outperforming London, as evidence mounts of the flow of buyers and equity out from the capital. The Midlands and the North have the potential to outperform thereafter, as has been seen in previous cycles.

A breakdown of the figures shows growth in London next year at 5%, followed by 0% in 2016 and then rising to 1% in 2017 and 2% in 2018. In the South East the forecast is for 5%, 4%, 4% and 3.5% with a similar forecast for the South West at 4.5%, 4%, 4% and 3.5%.

The forecast for the East of England is for growth of 5% in 2015, followed by 4%, 4% and 3.5%. In the East Midlands it is 5%, 4%, 4% and 3.5% while in the West Midlands it is 4%, 3.5%, 3.5% and 3%.

Further north, where prices have been slower to grow, the forecast is not much different. In the North East it is for growth of 4% in 2015, followed by 3%, 2.5% and 2.5%. In the…

Renting is currently more expensive than ever in many areas in the United States, making it difficult for renters to save for a down payment on a home, according to a new analysis report.

Homes remain more affordable to buy in 94 of the country's 100 largest metros compared to historic averages. But renting is more expensive than ever in 88 of the country's 100 largest markets.

This comes as the latest Zillow Rent index shows that after three months of flat or negative monthly growth, national rents rose in July from the previous month.

It means that overall only a dozen are currently more affordable than they historically have been for both renters and home owners, as widespread growth in housing costs continues to outpace wage growth.

Nationally, US home values rose 6.5% year on year in July while national rents rose 2.8% over the same period. The Zillow Home Value Index rose to $174,800 in July, up 0.2% from June 2014 and 6.5% from June 2013.

The firm points out that rental affordability is currently much worse than mortgage affordability, largely because rents didn't experience the huge drop seen in home values during the recession, and instead have just kept climbing upward.

Nationally, renters signing a lease at the end of the second quarter paid 29.5% of their income to rent, compared to 24.9% in the pre-bubble period. In 88 of the nation's largest metro areas, renters should currently expect to pay a larger share of their income toward rent than they would have historically.

Thanks mostly to low mortgage interest rates, affordability of for sale homes looks much better. Buyers at the end of the second quarter could expect to pay 15.3% of their incomes to a mortgage on the typical home, far less than the 22.1% share home owners devoted to mortgages in the pre-bubble days.

As of June, home buyers in just six of the country's 100 largest metro markets analysed by Zillow were paying a larger portion of their incomes today than historically in order to buy their area's median priced home.

But mortgage rates are expected to rise in the coming year. When mortgage rates hit 5%, still very low by historical standards, the number of unaffordable metros for home owners among the top 100 will more than double, to 13. At 6% mortgage interest rates, the number of unaffordable metros will almost double again, to 24.

‘The affordability of for sale homes remains strong, which is encouraging for those buyers that can save for a down payment and capitalise on low mortgage interest rates. But the health of the for-sale market is directly tied to the rental market, where affordability is really suffering,’ said Zillow chief economist Stan Humphries.

‘As rents keep rising, along with interest rates and home values, saving for a down payment and attaining homeownership becomes that much more difficult for millions of current renters, particularly millennial renters already saddled with uncertain job prospects and enormous student debt….

First time buyers in Greater London borrowed 27% more in the second quarter of this year than they did a year ago, according to the latest figures from the Council of Mortgage Lenders.

Overall the lending market grew in both house purchase and remortgage activity compared to the previous quarter and the same period last year.

First time buyer loans totalled 12,300 in the second quarter in London, 4% up on the previous quarter, and 17% up on the same quarter in 2013. First time buyers in the period borrowed £3 billion, up 10% on the previous quarter and 27% on the second quarter of last year.

The data also shows that there were 9,000 home mover loans in the second quarter, up 1% on the previous quarter and 7% on the second quarter of 2013. Total value of these loans was £3 billion, up 9% on the first quarter and 26% on the second quarter 2013.

Remortgage lending in the quarter showed growth in London compared to the previous quarter and the same quarter in 2013.

House purchase lending to home buyers increased quarter on quarter in London totalling 21,300 loans, up 3% compared to the first quarter and the value of these loans totalled £6 billion, a rise of 9% on the first quarter. Compared to the second quarter of 2013, the number of loans increased 13% and value of these loans increased by 27%.

First time buyers typically borrowed 3.90 times their gross income, more than the 3.83 in the previous quarter and the UK average of 3.46. The typical loan size for first-time buyers was £212,000 in the second quarter, up from £200,000 in the previous quarter. The typical gross income of a first-time buyer household was £55,000 compared to £52,500 in the first quarter.

Due to higher house prices within London compared to the UK overall, there was a continued shift in the mix of properties bought by first time buyers in London towards more expensive properties. In the second quarter, 63% of first time buyers bought properties priced at more than £250,000, up from 57% in the first quarter and 51% in the same period last year. This was significantly higher than the UK overall level of 17%.

First time buyers in London have tended to put down larger deposits than in the UK and the report points out there was a period in 2009 and 2010 when there was no difference and typical deposits increased to 25% in London and in the UK, but whereas in the UK the typical loan to value has drifted up to 80%, in London it has remained at 75%.

In the second quarter, first time buyers paid 21.1% of gross monthly income towards capital and interest payments, a higher proportion of income than 20.7% in the first quarter. Lending to home movers showed similar, albeit slightly lower, growth patterns in Greater London to first time buyer lending.

Home mover…

The ban on tenant fees has accelerated rent rises in Scotland with annual average rents up 2.3% after years of stability, according to the latest published index.

The average rent in July was £534 per month compared with £508 per month before the fees change, the first rise in almost two years, the buy to let index from Your Move, part of LSL Property Services shows.

It also reveals that tenant finances healthier than south of the border, with 15% less rent in arrears in Scotland and landlord total returns are three times as high as a year ago, climbing to 9.9% a year or £14,994.

This means that tenants in Scotland are currently paying an extra £26 a month in rent on average than before the legislation was introduced, amounting to £312 across a year. This is substantially more than the typical upfront costs tenants used to pay when setting up their tenancy.

At an average of £534 a month, this is the highest level of rent in Scotland on record but is still 29% lower than the average monthly rent across England and Wales, which was £753 in July 2014.

‘Tenancy fees were outlawed in Scotland with the well meaning intention of protecting thousands of households reliant on rental accommodation. But we can see that in reality tenants are starkly out of pocket,’ said Gordon Fowlis, regional managing director of Your Move.

‘They are paying much more over a 12 month tenancy than they would have expected to pay for a single set up fee, adding to the daily cost of living challenge. Before this policy was implemented rents had been flat, relaxing the burden on household budgets and giving tenants some breathing space to climb back on their feet after the dark days of the recession. Banning fees has heightened the financial strain on tenants, as greater costs are now incurred elsewhere through rents increasing at a faster pace,’ he explained.

He pointed out that the biggest threat to the private rented sector is further unwarranted regulation. ‘As we move into the final furlong before the referendum, all sides need to be careful not to scare landlords off the playing field as private renting is now a key integral solution to fulfilling Scotland’s housing needs. If private Landlords sell up and leave the rental market due to more well-meaning, but clumsy, regulation this could force a housing shortage for renters,’ added Fowlis.

Overall the data reveals that in four out of five regions in Scotland, rents are higher than a year ago. The fastest annual increase is in the South, where the average monthly rent is now 4.8% higher than in July 2013.

This is followed by a 3.6% annual rise in Edinburgh and the Lothians, and annual rent uplift of 3% in Glasgow and Clyde. In both of these areas, rents reached the highest level on record in July. In the East, there has been no annual change in average rents,…

Local government secretary Eric Pickles is calling for new housing developments to be built with more parking spaces to end a “vicious cycle” where clogged up streets leave motorists to run a gauntlet of congestion, unfair fines and restrictions.

The government is proposing action to rein back in arbitrary parking standards, which have previously prevented and restricted house builders from providing homes with enough parking spaces.

Where sufficient parking spaces are not provided people will resort to either paving over their front garden or parking on the street, said Pickles. This can then result in a counter-productive increase in municipal on-street parking restrictions and fines.

“Families want a home with space for children to play in the garden and somewhere to park and load the car or cars,” said Pickles. “No space at home leaves no space on the road. We need to cease this vicious cycle that leaves our streets endlessly clogged-up. Allowing the market to offer enough parking spaces will help take the pressure off our congested roads.

The department has published new planning guidance for consultation, which seeks councils’ support to improve the quality and quantity of parking.

Balfour Beatty’s directors have used a new method to evaluate the company’s PPP portfolio, resulting in a value of £1.051bn – 46% higher than under the old approach.

The valuation methodology has been changed to reflect reduced discount rates, improved cash flow assumptions and revised macroeconomic assumptions. The new figures represent a 46% increase to the total portfolio valuation as at June 2014, compared with applying the former valuation methodology.

The directors’ valuation is intended to provide an indicator of the value of the PPP investment portfolio. By using a consistent methodology over time, it has served to illustrate movements in the underlying value of the portfolio, rather than seeking to provide an open market valuation. However disposals of UK assets over the last few years have highlighted the growing difference between the directors’ valuation and the values achievable for UK investments in the open market. The board concluded that the existing methodology no longer provided a good indicator of value.

The directors’ valuation of the portfolio at December 2013 stood at £766m. Underlying movements during the first half reduced the directors’ valuation, under the previous methodology, to £721 million. This reduction was driven by disposals made in the first half more than offsetting underlying increases and the inclusion of Balfour Beatty Infrastructure Partners for the first time. The application of the updated valuation methodology saw the total portfolio valuation increase to £1.051bn.

The UK portfolio valuation increased by 63% to £801m at June 2014, with the North America portfolio put at £250m, a rise of 9%.

Balfour Beatty expects to invest approximately £250m into the PPP portfolio over the next five years.

Builders’ merchant Grafton Group, which includes the Plumbase, Selco and Jackson brands, has seen its profits and profit margin rise in the first half of this year.

Revenue rose 11% to £1.02bn and underlying operating profit was up 62% to £50.6m, with the margin increasing to 5% from 3.4%. The underlying profit before tax grew 88% to £45.9m.

Strong performance in the UK merchant business was attributed to  volume growth in the residential repair, maintenance and improvement market. There was also strong operating profit growth in Ireland as market recovery gained momentum.

"These results demonstrate further progress by the group, in particular, the milestone of a 5% Group operating margin, which is a key point in our journey from recovery to growth," said chief executive officer Gavin Slark. The group remains committed to a growth strategy of organic initiatives and value adding acquisitions, he added. "We believe the overall outlook is positive, notwithstanding a slower rate of growth in the second half and we are confident that the full year's trading performance will be at least in line with current consensus expectations."

Developers in Dubai should introduce rent to own schemes to help many buyers who can no longer afford homes in the emirate’s booming residential real estate market it is claimed.

Although Dubai suffered price falls of up to 60% in some locations during the economic downturn, prices have been rising strongly again and new mortgage rules means it is harder to get a loan, especially for expats.

International property agency Chesterton believes that rent to own schemes, which were popular during the early 2000s when Dubai was establishing its own property marketplace, would help those struggling to afford to buy amid stricter regulations designed to cool rising prices.

According to Robin The, director of valuations at Chesteron MENA, such a move would also inspire confidence in buyers and reduce the risk element in buying into the UAE market.

‘There are several expats who have been here for years and are now looking at buying a property, but are finding it difficult due to the current mortgage cap restrictions. Exponential growth in the UAE property market has made buying a property a near difficult proposition for the majority of end users,’ he explained.

Mortgage regulations requiring a 50% down payment for expats has also hit the loans sector. So while the regulations have stabilised the market, they have at the same time made property investment unaffordable for most expat residents who usually cannot manage the deposits needed.

‘The solution to this is a rent to own option which gives owners the flexibility to terminate the contract towards the end of the tenure if the decision has not been made to purchase the house without any penalty,’ he added.

A typical rent to own real estate agreement is structured like an option contract. It allows the tenant to purchase the property at a fixed price within a specific period of time. A portion of the monthly rent paid during the lease period is counted towards the down payment on the property.

Usually the property is leased higher than the market rate to cover the option price or the deposit that tenant has to pay to activate the option. If the tenant is unable to exercise the option to buy, the owner is then free to rent or sell the property to another buyer.

‘Rent to own schemes have various benefits for both tenants and developers. While sellers get an option fee and potential buyer, tenants get to live in the property and try out the neighbourhood before actually settling in for the long term,’ said Simon Gray, managing director for Chesterton MENA.
‘It also provides an opportunity for the seller to sell the property at a higher asking price because buyers who cannot own a house in any other way are usually willing to offer a higher future price based on the assumption that the market will improve,’ he pointed out.

‘From the developer's point of view, offering a lease to own scheme will surely open up an additional pool of…

With house prices in the UK generally still on the rise despite talk of interest rate rises and new mortgage rules, a the leading holiday homes market place is encouraging property investors to consider the holiday rentals market to maximise their returns.

The firm, HomeAway, reports that it has experienced at 32% rise in demand for staycation holidays in the UK in 2014 and says that the revenues from short term rentals outstrip long term tenancies.

‘Holiday rentals also mean owners can still enjoy their second home without committing to the obligations of being a landlord. If owners are considering selling their properties, we suggest holiday rentals are the perfect solution in an uncertain market, and may be a long term strategy for investors,’ said Karen Mullins, marketing director of HomeAway which has more than a million holiday home listings.

Research by the firm shows that London is the top destination for enquiries from customers around the world, accounting for 43% of enquiries for UK based holiday homes. The West Country came second with 17%, South East England next with 9% and then the Cotswolds with 5%.

The firm added that the Cotswolds is a becoming a hot destination for both staycationers and overseas visitors alike with enquiries for the area up by 89% year on year. While this is good news for people who already own property in the area, prices in the Cotswolds are higher than London with the average home costing 19 times an average annual salary, according to the National Housing Federation.

‘We would suggest owners and investors in Yorkshire, the Midlands, the North East and Conwy in particular, look at holiday rentals, as these areas have seen enquiries more than double on HomeAway in the last 12 months and property there is far more affordable,’ explained Mullins.

HomeAway claims that there are other benefits to letting second homes rather than leaving them empty for 48 weeks a year that go beyond the rental revenue. Not only will the property be more secure when hosting guests, but these high spending visitors also provide a welcome boost to local attractions and restaurants, ensuring the long term prosperity of the destination and therefore value of the property.

‘People who book with HomeAway get to stay in fantastic properties across the globe that invariably provide better quality accommodation and value than hotels. These savvy staycationers also provide a welcome boost to rural economies and offer owners a healthy revenue stream of up to £54,000,’ said Mullins.

‘With the housing market showing signs of cooling, now is the perfect time to consider renting your second home to holiday makers, rather than selling up,’ she added.

The prime residential market across Scotland has showed a strong performance this year and seeing its busiest 12 month period since 2008, according to new research.

This sector, comprising properties worth £400,000 and more, has outperformed the mainstream housing market and seen a 35% annual increase in activity, reaching 2,860 transactions during the year ending May 2014.

The prime market has been robust from spring 2013 onwards while sales in the mainstream market across Scotland increased annually by 22% across the same period, according to the research from Savills.

The prime market is being boosted by the hubs of Edinburgh, the Aberdeen area and Greater Glasgow, where activity increased annually by 31%, 43% and 44% respectively. Edinburgh was heavily supported by the hotspots of Grange, Morningside and Merchiston and sales in these areas combined increased annually by 26% while sales in the New Town of Edinburgh increased annually by 49%.

Similarly, the prime southern Glasgow suburbs of Pollokshields, Newlands, Giffnock and Newton Mearns experienced a strong market with a 45% annual increase in activity. These areas continue to be supported by top quality education facilities and excellent transport links.

According to Faisal Choudhray, associate director of residential research at Savills Glasgow, the market strength in the core locations of Edinburgh, Aberdeen and Glasgow has spilled out to some of Scotland’s provincial locations, such as Tayside, where prime transactions increased last year by 33% and also the Midlothian area, south of Edinburgh, where prime transactions also increased. The prime markets in Ayrshire and the Borders also improved last year following restrained performance in previous years.

‘Prime values across Scotland have fallen over the last few years due to the high levels of stock available on the market. However, the significant increase in prime sales has created a net reduction in stock levels in some hotspots, resulting in an annual rise of 6% in prime values in Edinburgh and 4.5% in Glasgow during the second quarter of this year. The rebalancing of supply and demand has started in the country locations of Scotland, with values stabilising during 2014,’ Choudhray explained.

‘In previous years, the prime market has seen a reliance on those aged over 50. However, the market in the city hotspots of Edinburgh and Glasgow is increasingly being driven by professionals below the age of 40, comprising around 43% of Savills sales during the year ending July 2014, compared to 30% during the previous year,’ he pointed out.

‘This target market had been somewhat subdued following the housing market downturn, mainly due to affordability issues. However, there was an ever present pent up demand among this age category aspiring to upsize. This upswing is enabling the whole of the market to move again, following low levels of sales during 2011 and 2012,’ he added.

The research also shows that there was a jump in transactions at the top end of the market above £1 million in Scotland, with 143 sales recorded during the year ending May 2014, compared to 119…

Households in all regions of the UK perceived that property prices rose in August, but at the slowest rate since March, the latest price sentiment index shows

According to the HPSI from Knight Frank and Markit Economics expectations for future price growth ticked up, but still remain substantially lower than May’s record high.

Some 28.9% of the 1,500 households surveyed across the UK said that the value of their home had risen over the last month, while 5.3% reported a fall. This gave the HPSI a reading of 61.8, the seventeenth consecutive month that the reading has been above 50.

However, the reading was down on the 62.4 achieved in July and was the third consecutive month that households’ perceptions about house price growth have moderated. Any figure over 50 indicates that prices are rising, and the higher the figure, the steeper the increase. Any figure below 50 indicates that prices are falling.

Households in all 11 regions covered by the index reported that prices rose in August, with those living in London perceiving that the value of their home had risen at the strongest rate at 71.4, followed by households in the South East at 68.4 and the East of England at 63.5.

The future HPSI, which measures what households think will happen to the value of their property over the next year, crept up in August to 72.8, up from July’s reading of 71.7.
‘While this suggests that households are expecting slightly bigger price rises than in July, the future HPSI remains well below its peak of 75.1 achieved in May,’ said Gráinne Gilmore, head of UK residential research at Knight Frank.

The index also shows that households in every region expect the value of their home to rise, with those in the South East most confident about price increases at 79.3. This is the third consecutive month that those in the South East have reported large price expectations than Londoners.

The index also rose to a record high in the West Midlands to 74.3, signifying that households here are more confident that the value of their home will rise in the next 12 months than at any time since the index started in early 2009.

After three consecutive months of declining expectations for price growth in London, expectations for future price growth in the capital picked up to 77.7, although this remains well below the record high of 83.1 in April.

Some 5.9% of UK households said they planned to buy a property in the next 12 months, down from 6.7% in July. Looking at the figures on a regional basis reveals that some 9.3% of
Londoners plan to purchase a property in the next year, compared to just 3.4% in the West Midlands.

Those aged between 25 and 34 are the most likely to be considering a house purchase within the next 12 months at 9.9%, while those aged between 45 and 54 were the least likely to be buying a new…

Kingspan’s financial report for the first half of this year shows revenue up 4% to €889.3m (£708m) and a 24% increase in trading profit to €69.2m.

The company said that its performance overall was good, with sales levelling off in the second quarter following a strong and unseasonal first quarter.

Sales of insulated panels were up 9% and trading profit up 30%. Factors include some improvement in end markets in certain regions. Insulation boards saw sales rise  1% and trading profit up 32%, with a good performance in the UK in particular and an improved business mix. The group's new facility in the Eastern region of Germany was fully commissioned in the second quarter.

Environmental sales were flat overall and have stabilised. Access floor sales were down 11%, with weak US office activity offsetting a good performance in UK office volumes.

Chief executive Gene Murtagh said: "Kingspan has delivered strong growth in profitability, notwithstanding a tougher EU construction sector in the second quarter, and a global economic recovery that remains weak. Our order book carried good momentum into the second half of the year, driven by continued growth in the demand for low energy buildings."

Kingspan recorded a positive start to the first six months of 2014 resulting in sales revenue of €889.3m and a trading profit of €69.2m, an increase of 4% and 24% respectively. Quarter one activity, in particular, showed a significant improvement over the same period in 2013, followed by a second quarter sales trend that eased towards mid-year.

UK revenue, representing 38% of Group sales, grew materially in the first half in the insulated panels, insulation boards and access floors businesses as general building activity continued to recover.

The trading environment in many of the other markets has been quite mixed with the Benelux and France remaining under some macro-economic pressure despite being enhanced by an unseasonably mild first quarter. The German market was stable, as was the Gulf region. The performance in Turkey was quite weak as a result of recent political instability there. North American non-residential activity was reasonably stable where the insulated panels business continued to gain from further penetration growth, although this was countered somewhat by weak office construction in that region.

Earlier this month Kingspan announced that its had entered into an agreement with Pactiv acquire its US building insulation business (link opens in new tab).

North Midland Construction (NMC) has reported group revenue of £90.98m for the first half of this year.

The figure is up 1.5% on the revenue for the same period in 2013. Profits before tax for the first half of 2014 are £0.37m compared to a loss before tax of £0.48m for the same period last year. In addition, the underlying profit before tax of the business – prior to problematic contract provisions – was £1.78m, compared to £1.24m for the first half of 2013.

Problems still remain in the building and civil engineering division, particularly in connection with the resolution of three legacy contracts, said the company. This has resulted in an operating loss of £0.84m for the period, however, this compares to a £1.58m loss for the same period last year. The division’s revenue has reduced by 31.3% to £11.72m too.

Progress is being made to resolve the problematic contracts and the division has been completely restructured under new management.

NMC chairman Robert Moyle said: “The return to profitability is encouraging and orders received to date to be executed this financial year stand at £178m. Maximum effort is being expended to bring the legacy contracts to conclusion and settlement and whilst the Group continues to trade profitably, there is still potential risk in the resolution of legacy contracts.”       

The NMCNomenca division has reported profitability increasing by 8.4% to £0.94m from £0.87m for the same period last year, on revenue increased by 10.8% to £41.31m.

The AMP5 programme is drawing to a conclusion with the inevitable pressure on margins, but costs have been controlled and the division is performing to expectations. In addition, Severn Trent Water has recently awarded the division the asset maintenance framework for its Eastern area, at a value of £6m a year. The framework has a five year duration, with the option of a two-year extension.

Preparatory work has already started on the Severn Trent Water AMP6 programme, which was secured in December 2013.

Nomenca, the group’s mechanical and electrical subsidiary, has had a relatively slow start to the year, with revenue declining by 3.7% to £19.04m from £19.76m for the same period last year.  However, operating profitability was maintained at £0.18m.

The reduction in revenues was caused by the delayed award of a major project and reduced expenditure on one particular framework.  Revenue is expected to increase in the second half of the year and a further £24m worth of orders has already been secured for completion this year. NMC is confident it will achieve its full-year target.

The highways division has suffered a slower start to the year than originally forecast, with delays in anticipated expenditure and the award of a major project.  In spite of this, revenue escalated to £7.71m but this was insufficient to cover the overheads, which had been increased in anticipation of the projected increased revenue. Therefore, an operating divisional loss of £0.01m was incurred.  Secured revenue for the division for this year currently stands at £24.60m, so the second half-year is expected to show a significant increase and a return to profitability.

The utilities division has benefited from increased expenditure by telecoms companies on broadband infrastructure, causing revenue to rise by 15.5% to £10.99m with improved operating profitability which has increased to £0.14m.

The director of a Stockport-based building firm has been fined after workers on a house refurbishment were put at risk by the lack of any hot water to wash off dust and contaminants.

Roland Couzens, 67, from Macclesfield, was prosecuted by the Health & Safety Executive (HSE) after it emerged that the bricklayers, plasterers and a roofer could have suffered skin burns or lead poisoning during the contract.

Trafford Magistrates’ Court heard that Couzens, a director at CSC Construction Ltd, had been overseeing a project to refurbish a row of Victorian terraced houses on Ashton Old Road in Openshaw between May and September 2013.

The company, which has since gone into administration, had been stripping the houses bare before plastering them and fitting them with new kitchens and bathrooms.

HSE carried out an inspection of the site on 4 September 2013 and found that one of the vacant properties was being used for the site office and to provide welfare facilities for the workers. However, there was no hot or warm water supply in either the kitchen or bathroom.

The court was told that bricklayers and plasterers were put at risk of suffering skin burns as they were working with cement and plaster but could not use hot water to clean themselves. A roofer working with lead could also have suffered lead poisoning from residues on his skin.

Couzens admitted to visiting the site several times a week during the project but failing to provide a hot water supply until after the HSE inspection, despite the need for hot water being highlighted in the company’s construction plan.

Roland Couzens, of Sugar Lane in Rushton Spencer, near Macclesfield, was fined £2,000 and ordered to pay £3,102 in prosecution costs after pleading guilty to a breach of the Health & Safety at Work etc Act 1974.

Speaking after the hearing, HSE inspector Matt Greenly said: “There were around a dozen people working on the site every day so it’s astonishing that they were without hot water for more than three months. Mr Couzens was brought in to oversee the project, including the health and safety of workers, but he failed to ensure this basic legal requirement was met.

“The houses were taken back to brick before being completely renovated so there were large amounts of dust, as well as the risk of workers suffering skin burns or lead poisoning from the components in the building materials.

“This case should act as a warning to companies and directors that we will not hesitate to prosecute if they do not act to ensure the health and safety of their employees.”

The number of home owners in the UK who can claim to be ‘property millionaires’ now stands at 484,081, almost 50% higher than last year, according to new research.

The latest Property Rich List 2014 from property listings firm Zoopla, shows that the 10 most expensive streets in Britain have seen property values grow 12.9% over the last year, compared to the rest of the country where average values have risen by 6.6% over the same period.

Overall there are 10,613 streets with an average property value of over £1 million, up 29% on 2013 and the value of the most expensive streets are rising at nearly twice the national average. Just under a third of these streets with average property values over £1 million are located in London.

There are now 12 streets with average house prices over £10 million, all of which are in London. The average property on Kensington Palace Gardens, the most expensive street, is now worth £42,730,706, some 162 times the value of the average British home currently valued at £263,705 according to Zoopla.

The Boltons in SW10 takes second place on this year’s property rich list with average house prices standing at £26,570,341, and Grosvenor Crescent in SW1 rounds out the top three with average property prices of £22,293,470.

Outside of the capital, the most expensive street in Britain is Sunninghill Road in Surrey, where the average home is currently worth £5,605,067. The two most expensive towns outside London are both in Surrey, with average house prices in Virginia Water at £1,186,262 and Cobham at £1,003,400.

W8 remains London’s most prestigious postcode, with average property prices in the area of £2.78 million. Neighbouring SW7, the next most expensive area in the capital, has average values of £2.48 million, while property values in third placed SW3 stand at £2.37 million. The rest of the top 10 is dominated by areas in South West, West and North West London.

‘London boasts all of Britain’s 20 priciest addresses. Prime properties in the capital have long been a magnet for the super wealthy looking for a safe investment asset. For the lucky few who can afford these stratospheric price tags, the fabulous mansions on streets like Kensington Palace Gardens and the Boltons are offering very strong returns,’ said Lawrence Hall of Zoopla.

‘However you don’t need to be a billionaire to get a chance to own the crème de la crème of property on offer. In Wales and the North East, you can still snap up a prime property in the region’s most desirable streets for little over £1 million,’ he added.

Existing home sales in the United States increased in July to their highest annual pace of the year, according to the latest report from the National Association of Realtors.

Total existing home sales, which are completed transactions that include single family homes, town homes, condominiums and co-ops, rose 2.4% to a seasonally adjusted annual rate of 5.15 million from a slight downwardly revised 5.03 million in June.

Sales are at the highest pace in 2014 and have risen four consecutive months, but remain 4.3% below the 5.38 million unit level from last July, which was the peak of 2013.

According to Lawrence Yun, NAR chief economist, says sales momentum is slowly building behind stronger job growth and improving inventory conditions.

‘The number of houses for sale is higher than a year ago and tamer price increases are giving prospective buyers less hesitation about entering the market. More people are buying homes compared to earlier in the year and this trend should continue with interest rates remaining low and apartment rents on the rise,’ he said.

Yun does warn that affordability is likely to decline in upcoming years. ‘Although interest rates have fallen in recent months, median family incomes are still lagging behind price gains, and mortgage rates will inevitably rise with the upcoming changes in monetary policy,’ he explained.

The median existing home price for all housing types in July was $222,900, which is 4.9% above July 2013, the 29th month in a row when year on year prices have increased.

Total housing inventory at the end of July rose 3.5% to 2.37 million existing homes available for sale, which represents a 5.5 month supply at the current sales pace. Unsold inventory is 5.8% higher than a year ago, when there were 2.24 million existing homes available for sale.

Distressed homes, known as foreclosures and short sales, accounted for 9% of July sales, down from 15% a year ago and the first time they were in the single digits since NAR started tracking the category in October 2008.

The data shows that some 6% of July sales were foreclosures and 3% were short sales. Foreclosures sold for an average discount of 20% below market value in July, while short sales were discounted 14%.

Yun said that the deepest housing wounds suffered during the recession are beginning to fully heal. ‘To put it in perspective, distressed sales represented an average of 36% of sales during all of 2009. Fast forward to today and rising home values are helping owners recover equity and strong job creation are assisting those who may have fallen behind on their mortgage due to unemployment or underemployment,’ he explained.

All cash sales in July were 29% of transactions, down from 32% in June and representing the lowest overall share since January 2013 when it was 28%. Individual investors, who account for many cash sales, purchased 16% of homes in July, unchanged from last month and July 2013. Some 69%…

The cost of a first time buyer owning a home in the UK is now on average £110 per month lower than renting or £1,316, new research shows.

The average monthly mortgage costs associated with owning a three bedroom house for a typical first time buyer in the UK stood at £677 in June 2014, some £110 lower than the average monthly rent paid on the same property type at £787.

This compared to five years ago when the average cost of buying was £37 a month more at than the typical rent paid at £734 compared to £697, according to the research from the Halifax.

The building society, one of the UK’s biggest lenders, says that the significant fall in the monthly cost associated with buying compared to renting has been driven by the decline in the average mortgage rate since 2009.

The mortgage rate for a first time buyer has fallen to an average of 3.09% from 4.92% in June 2009, helping to reduce the average monthly mortgage payment by £57 or 8%. In the past year the difference has grown from £93 to £110, although the average buying cost has grown by £25 this has been more than offset by average rental costs rising by £42.

Regionally, buying is currently most cost effective compared to renting in London, Wales and the West Midlands with the average first time buyer taking out a new mortgage to finance house purchase in the West Midlands paying 12% less per month than the typical private tenant. Only in the East Midlands are first time buyers still better off renting.

The lower costs of owning compared with renting, together with lower mortgage rates and an improving economy may have contributed to a 29% to the number of buyers getting on the housing ladder for the first time. In 12 months to June 2014 there were 301,300 house purchases made by first time buyers, compared to 233,400 a year ago, almost double compared to five years earlier. First time buyers now account for 45% of all house purchases, compared to 38% in 2009.

‘It is clearly encouraging that since 2009 there has been a significant decline in the cost of buying a home for those for those trying to get on the housing ladder. The improvement is due to a combination of lower mortgage rates and rising private rents. In contrast, market conditions for renters have deteriorated as rents have risen over the same period,’ said Craig McKinlay, Halifax’s mortgage director.

‘Buying costs have been remarkably stable for much of the past five years making home ownership a more attractive option. With greater availability of mortgages that require smaller deposits, the property ladder has also become even more accessible for those who can afford the monthly costs of owning but had previously not been able to save the necessary deposit,’ he added.

Homes close to the top 30 state schools in England have the largest price premium and cost on average 8% or £21,000 more, new research shows.

And it is in the postal district of the Beaconsfield High School in Buckinghamshire where parents face paying a premium of £483,031 or 154% compared to the average house price in neighbouring areas.

The research by Lloyds Bank also shows average property prices in the postal districts of the top 30 state schools in England, defined as those secondary schools that achieved the best GCSE results in 2013, have now reached £268,098 compared to their county average of £247,143.

Five of the 30 top state schools are in locations that command a house price premium of over £115,000 compared to their surrounding locations. Homes within the postal district of Sir William Borlase's Grammar School in Buckinghamshire command the second highest premium with house prices in the postal district of SL7 at a premium of £184,058 or 59%.

However, half of England's top 30 state schools are in locations where the average property price is below the average of those in neighbouring areas. With an average price of £134,261, properties in the postal district of Devonport High School for Girls in Devon PL2 are 38% or £83,375 below the county average.

In cash terms, the largest discount can be found in the area close to Reading School where the average house price in RG1 of £212,994 is £107,979 lower than the Berkshire county average.

Those on average earnings are finding it difficult to purchase a property close to many of the best state schools. The average house price of £268,098 in the postal districts of the 30 best performing state schools is almost eight times average gross annual earnings of £35,157 compared to the 7.4 average across England.

Homes within the postal district of the Beaconsfield High School are the least affordable with the typical property price of £796,909 in this part of Buckinghamshire are just over 18 times gross average annual earnings in the area. Houses in the postal district of the Sir William Borlase's Grammar School, also in Buckinghamshire, are the second least affordable at 11.4 times average annual earnings.

In contrast, properties in the postal district of the Heckmondwike Grammar School in Kirklees are the least expensive in this survey at £99,063 and are the most affordable with a house to price ratio of 3.2.

The postal districts of the top performing secondary state schools in six of the nine English regions command a house price premium compared to their county average. The South East has the largest premium with average house prices in the postal districts of the top 10 state schools in the region trading 27% or £72,314 above the average house price in their county.

This is followed by East Anglia with a premium of 25% and the North West with a premium of 24%. In contrast, homes in the East Midlands and the South West that are close…