Crossrail tunnel boring machine (TBM) Jessica has completed her 900-metre journey from Limmo Peninsula, near Canning Town, to Victoria Dock in east London.

Crossrail’s rail tunnels are now 83% complete and the project remains on programme and within the allocated budget.

Joint Venture Dragados Sisk is constructing the eastern tunnels between Pudding Mill Lane and Stepney Green, Limmo Peninsula and Farringdon, and Victoria Dock Portal and Limmo.

The 1,000 tonne TBM completed her final journey in just nine weeks, driving up to 41 metres per day. The machine will now be dismantled, with parts returned to manufacturer Herrenknecht for use on other tunnelling projects.

It is Jessica’s second Crossrail tunnel drive, having already created one of the two tunnels forming the spur from Pudding Mill Lane near Stratford to Stepney Green.

Jessica’s sister tunnelling machine, Ellie, will start the remaining twin tunnel from Limmo to Victoria Dock in the coming weeks. TBM tunnelling is scheduled to complete early next year.

Crossrail chief executive Andrew Wolstenholme said: “We continue to make good progress on Crossrail’s tunnels. The end is now in sight on Crossrail’s tunnelling marathon, but there is much more to do in the form of installing railway systems and fitting out the stations.”

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New home sales in Australia increased by 1.2% in June and were up 2% on a quarterly basis, according to the latest home sales report from the Housing Industry Association (HIA).

The report, a survey of Australia’s largest volume builders, shows that sales of multi units drove the monthly result, up by 15.9% while new detached house sales fell by 1% in June. However detached sales were up by 2.6% in the second quarter.

‘That is a healthy note on which to finish the fiscal year. Further, albeit modest growth in detached house sales last quarter, together with very elevated multi-unit sales, augers well for new residential construction in addition to wider elements of the domestic economy,’ said HIA chief economist Harley Dale.

He also pointed out that detached house sales increased in four out of five mainland states in the June quarter. ‘The new home building sector will provide a healthy contribution to broader economic growth in 2014/2015,’ he said.

‘As the recovery enters its third year, the magnitude and duration of the current new home building upcycle is less certain than would usually be the case at this juncture. The share of medium/high density construction is higher and there are considerable delays occurring in the availability of titled land for detached and semi-detached housing,’ he added.

A breakdown of the figures show that in June private detached house sales fell in two out of five mainland states. There was a decline of 3.2% in New South Wales and 4.2% in Victoria. Detached house sales increased by 1.8% in Queensland, by 1.3% in South Australia, and 2.2% in Western Australia.

In the June 2014 quarter, detached house sales increased by 0.4% in New South Wales, by 4.1% in Victoria, by 6.6% in Queensland and by 4.1% in Western Australia. Detached house sales fell by 8.4% in South Australia in the June quarter and Dale said that the state may be the most vulnerable new home building market in the second half of 2014.

Meanwhile, in another positive sign for the residential construction sector, the latest housing finance data from the Australian Bureau of Statistics show that new home lending grew in the final quarter of the 2013/2014 fiscal year.

Diwa Hopkins, HIA economist, pointed out that the owner occupier segment of new home lending performed well throughout the year. ‘Following decent increases in the December and March quarters, lending for the purchase or construction of new homes increased again during the June 2014 quarter, albeit at a more modest pace of 1%,’ said Hopkins.

Over the full 2013/2014 fiscal year new home lending increased by 12%. ‘With lending rates remaining very low, turnover in the established home market has risen, as have home prices. The residential construction industry has responded strongly to these signals,’ explained Hopkins.

‘In terms of new home lending being a leading indicator of residential building, the housing finance figures suggest home building activity should continue its strong recovery as we progress through the…

The mortgage industry in the UK in June was driven primarily by lending for homes rather than remortgages with volumes up by 6%, according to the latest report from the Council of Mortgage lenders.

Total gross lending reached £17.9 billion, up 20% up on June last year, according to the Bank of England and in the latest quarter, gross lending totalled £51.4 billion, up 11% on the first quarter, and 23% on the second quarter of 2014.

The CML analysis shows that there were 28,600 first time buyer loans in June, some 7% more than in May, and 19% more than in June 2013 and by value, there was £4.2 billion of lending to first time buyers , up 11% on May and 27% higher than June 2013.

Lending to home movers also grew, but more slowly. In June, the number of loans to movers was 31,900, 4% up on the previous month and 11% on June last year while by value, lending to home movers was £5.9 billion, 5% up on May and 23% up on June last year.

However, remortgage lending remains muted compared with both first time buyer and home mover lending. The number of remortgages in June was 1% up on May but 8% down on June last year, although the value at £3.7 billion was up 6% on both.

The data also show that buy to let lending grew 5% over the month to £2.2 billion in June, though the number of loans was the same as May at 15,600. Growth was strong compared with buy to let lending in June last year, 38% up by value and 23% by number.

Paul Smee, director general of the CML, said that for the second month running since new Financial Credit Authority rules took effect, lending characteristics remain similar to the market beforehand.

‘We now feel confident that, as we would hope, the new MMR lending rules effect is more gentle dampener than hard brake. As we recently suggested in our revised forecasts, lending levels should continue to increase modestly over the course of the year, driven mostly by house purchase but with remortgaging also recovering,’ he explained.

According to David Brown, commercial director of LSL Property Services, all systems are starting to tick over more normally and the big questions are now about speed and capacity for new home owners.

‘Moderating price rises are a sign of steadying confidence, the equivalent of winding down the engines after take-off. And recent flows of first time buyers are a sign of making real headway. Sellers are finding quality buyers more quickly, and transactions volumes are growing,’ he said.

‘But to get the dream of homeownership truly airborne, we need more homes. Building levels are growing rapidly, and this will need to carry on indefinitely. If so, the house purchase market could one day see affordability improve consistently, as we’ve seen with the private rented sector. But in the meantime, below inflation rent rises, thanks to solid…

The National Landlords Association (NLA) is reminding UK landlords of the importance of understanding their obligations as its latest research shows that more than a quarter have been letting for less than five years.

The research conducted by the NLA shows that 27% of landlords have been letting for less than five years, with 14% letting for just two years. Some 21% of landlords have been letting between six to 10 years and 52% for more than 10 years.

The figures correlate with the NLA’s recent findings that the proportion of part time or ‘amateur’ landlords is now at its highest ever level, comprising 70% of the sector.

With this in mind, the NLA is reminding all landlords of their obligations toward their tenants and the importance of ensuring good standards within the private rented sector (PRS) are maintained.

‘These findings tell us that a significant proportion of landlords have only been in business for a relatively short period of time. Even the most seasoned of landlords experience problems, so it is crucial that anyone new to the industry is aware of their obligations and understands that being a landlord involves much more than simply purchasing a property,’ said Richard Lambert, NLA chief executive officer.

‘Landlords should make sure they educate themselves as to what is expected of them, legally and professionally, especially if they plan to manage the properties themselves. Not knowing your obligations as a landlord could result in serious problems, financial as well as legal. A tenant should be safe and comfortable in their home and ignorance is no excuse,’ he explained.

‘In order to ensure good standards in the sector, anyone who is thinking of becoming a landlord should do their research first and make sure they continually keep up to date with legislation and good standards of practice. As the leading landlord association, landlords can rely on us as a source of valuable information and advice,’ he added.

Meanwhile, separate research shows that nearly one in three private tenants only deal with a letting agent and have never met their landlord.

Some 30% of private tenants deal only with their letting agent, 24% of these respondents work primarily with the letting agent but have met their landlord, and 46% deal with the landlord directly on issues concerning their home, according to research from mortgage and loan broker Ocean Finance.

Across the country, London renters were among the most likely to only work with a letting agent, along with residents in the North East at 36% and 38% respectively. The capital is home to the highest percentage of renters in England and Wales at 50% of all households in the city.

Renters may want to speak with their landlords directly if there is a problem with the property, rather than having to wait to go through the letting agent to reach them. They may also see good communication with their landlord as part of the service they are paying for. On average, private renters spend 40% of…

A new compulsory valuer registration programme for real estate in the Cayman Islands has been introduced with the aim of providing more confidence in the property market.

The Royal Institution of Chartered Surveyors (RICS) programme sets out to raise confidence in the accuracy and delivery of valuation reporting and advice.

Michael Zuriff, RICS manager of regulation for the Americas said it will provide lenders, asset managers and investors a clearly identifiable designation for the best regulated and qualified professionals.

‘The Valuer Registration Programme is an independent system of regulatory monitoring which reduces the risk of poor quality valuations, and enforces high standards of competence and ethical awareness,’ he explained.

‘Valuer Registration sends a clear message to clients, governments and banks that RICS members welcome open scrutiny and comparison with industry best practice. As an underpinning to important financial transactions, it is in the public interest that confidence in the accuracy of valuation work is upheld,’ he added.

RICS members already perform valuations under RICS Valuation Standards, also known as the ‘Red Book’, which are in compliance with International Valuation Standards (IVS), and International Financial Reporting Standards (IFRS), and in turn, globally recognized by banks, lenders and other major financial institutions.

In an increasingly global business environment, RICS is facilitating greater consistency and transparency within these international valuation standards.

It is a significant milestone for the islands according to Uche Obi, senior valuer with the Cayman Islands Government and board member of RICS Caribbean & Americas.

He explained that in recent years there has been an upswing in reporting standards, with increasingly high levels of transparency, credibility and consistency shown in valuation reports.

‘RICS' mandatory Valuer Registration Programme will now continue to drive forward the progress made to date, and will put us on the map as being an example of best practice in the Caribbean,’ he added.

The programme was conceived by RICS’ leading valuation experts in response to the global financial crisis and first implemented in the UK in 2010. It has since gone mandatory for RICS members performing valuations in the Netherlands, Hong Kong, and the United Arab Emirates.

Balfour Beatty says that it needs to make further cuts to overheads in its UK construction business, despite having already cut £40m in annual spend over the past three years.

The news that further work remains to be done to turn around the business came as Balfour Beatty reported group revenues down 2% for the first six months of the year, excluding discontinued rail businesses, and impaired profitability.

Group revenue for the half-year was £4,851m (2013 H1: £4,956m). Underlying operating profit was down 31% to £37m. Underlying pre-tax profit was down from £47m for the same period last year to £22m this time, a decline of more than 50%.

The company said that operational issues in the mechanical and electrical engineering (Engineering Services) parts of the UK construction business had resulted in a disappointing 2014 first-half performance for the group as a whole.

“Across Construction Services UK our overhead and the cost improvement plans are well established, having already reduced overheads between 2011 and 2013 by over £40m. However as revenues have also declined over that period, overall overheads have remained above 6%. We continue to target further cost cutting initiatives, alongside the changes already underway,” the board said.

Suppliers as well as employees can expect to feel the squeeze: “The implementation of a single ERP business data platform for the business goes live in parts of the business from Q4 this year, concluding in Q1 2015. When that is completed we will have an enhanced analytical capability, which will improve operational control and help us consolidate procurement further.”

The UK order book declined by 11%, and was largely due to increased selectivity in bidding activity, and reduced order intake within the Engineering Services business.

After a weekend of press reports suggesting that the Carillion-Balfour Beatty merger might be back on, Balfour Beatty has this morning issued a lengthy statement detailing why it has rejected Carillion’s offer.

“The board has lost confidence in the likely delivery of a successful transaction and has therefore concluded that the current proposal from Carillion is not in the best interests of Balfour Beatty shareholders,” Balfour Beatty said.

It also revealed that Carillion has offered to pay off bidders for Parsons Brinckerhoff, so keen is it to keep hold of the profitable US subsidiary at the heart of the split between the two companies.

Carillion initially approached Balfour Beatty on 27 May 2014 with a merger proposal that would give 51% of the combined entity to Balfour Beatty shareholders and 49% to Carillion shareholders.

Several weeks of negotiations followed and a deal was agreed on the basis that Balfour Beatty shareholders got 56.5% to Carillion’s 43.5%, but Carillion got the three top jobs of chairman, chief executive and finance director. Balfour Beatty says that it was also agreed that its previously planned sale of its US engineering subsidiary Parsons Brinckerhoff would continue. At Carillion’s request, the equity split in the merger was predicated on Balfour Beatty retaining the proceeds from the sale of Parsons Brinckerhoff as freely available cash.

This was the deal behind the 25^th July announcement that merger talks were going on. (See previous report here.)

According to Balfour Beatty, at a meeting on 30th July Carillion told Balfour Beatty that it wanted to change the terms of the deal and keep Parsons Brinckerhoff business. The next day Balfour Beatty announced that it had terminated discussions on the basis of a fundamental concern regarding the proposed treatment of Parsons Brinckerhoff. With a sale at an advanced stage, Balfour Beatty was concerned about the costs that had been incurred by bidders should the sale be scrapped.

Other reports indicate that Carillion merely suggested delaying the sale of Parsons Brinckerhoff.

At a meeting between Carillion chairman Philip Green and Balfour Beatty executive chairman Steve Marshall on 3rd August, Carillion proposed a revised set of terms. Mr Green suggested that Carillion would pay the costs incurred to date by companies bidding for Parsons Brinckerhoff [reported to include Atkins, WSP and at least two venture capital funds] on the basis that these bidders would agree to keep their offers on the table should the Balfour/Carillion merger not ultimately happen.

Balfour Beatty said that its board considered the revised proposal but decided the risk of undermining the Parsons Brinckerhoff sales process was too great – “particularly as there is no strategic logic for its retention other than to enhance the earnings of the combined group”.

Balfour’s statement this morning said that it feared bidders for Parsons Brinckerhoff “may not regard the cost cover as adequate to remain fully committed to the process with the resultant risk that the sale process would be terminated”.

It also fears that “a failed sale process would materially impact the motivation and retention of Parsons Brinckerhoff management and employees and damage its competitive position in a rapidly consolidating professional services market”.

If the merger with Carillion did not go ahead, Balfour Beatty would then be left holding an asset – Parsons Brinckerhoff – that had effectively been devalued by its role as a passive pawn in what has effectively become a takeover battle.

Balfour Beatty’s statement concluded: “In light of these considerations on the revised proposal, the board has lost confidence in the likely delivery of a successful transaction and has therefore concluded that the current proposal from Carillion is not in the best interests of Balfour Beatty shareholders. With the Parsons Brinckerhoff sale process proceeding in line with the board's expectations, the board is clear that its current plans to refocus and simplify the group, including the sale of Parsons Brinckerhoff, remains the most attractive option. In this case, 100% of cost savings achieved by refocusing and simplifying the group would accrue to Balfour Beatty shareholders.”

In a separate announcement, Balfour Beatty said that the Parsons Brinckerhoff sale process was "well advanced, with completion expected by the end of the year, subject to shareholder approval".

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One in 10 home owners in the UK have had a DIY or large scale home improvement project go wrong, with an average repair cost of £3,200, new research shows.

Over half, 54%, believe the cause of the issues was down to shoddy workmanship at a time when 33% of home owners are choosing to add value to their properties with home improvement projects.

The research from Lloyds Bank reveals that the average cost of these improvements is £4,000. Some 12 % spent £2,001 to £5,000, 12 % spent 5,001 to £10,000, 6% spent £10,000 to £25,000 and 2% spent £25,000 or more on their most recent project.

If the average cost at each level is compared to the average repair cost of £3,200, botch jobs at any level can add an additional 12% to 91% on top of homeowner’s initial outlay, the research report points out.

Lloyd’s says that adding value to a property is key for home improvement projects. When the job is done correctly, the perceived value of some home improvements mirrors how much people spent on projects.

For example, 29% of the total number of home owners who carried out work believed they had added £10,001 to £25,000 to the value of their home. This is compared to 31% of the total number of home owners who said it had cost them the same amount to complete the project.

Still, a high number of people buy properties cheaper with the view to renovate to add value. Some six million buy under budget, with 25% of those intending to extend or convert their property to add value in the future. In the current market, nearly half, 44%, buy properties with the view of moving when they can afford something better.

The improvements made to homes often involve changing the purpose of one room within a property. Some 32% said they had changed the purpose of a room, with the spare bedroom being the most popular choice for 16%. Of this 16%, over half had changed this room into an office, and 7% had used the space as an entertainment room.

Although alterations made to purposes of rooms are generally not made to increase the value of the home, and indeed, 40% of respondents believed this to be the case, some changes do add perceived value. Some 17% believed that the changes made had added £10,001 to £25,000 and 10% thought changes had added £25,001 to £50,000.

‘Most home owners will dabble with home improvements at some stage, whether it’s a DIY project or a major construction. What’s important is to ensure the job is done to a high standard as botched job can be quite costly to rectify,’ said Marc Page, mortgages director, at Lloyds Bank.

‘Although the reasons for home improvements may differ from person to person, making a house a home is a key motivator,’ he added.

What is believed to be the first building of Sir Owen Williams, one of the giants of 20th Century British engineering and architecture, is to be refurbished.

A £6m joint venture of Workspace Group and Polar Properties has secured planning permission for its redevelopment of Enterprise House in Hayes.

The development will provide 98 apartments and a 38,000 sq ft business centre for creative industries.

Built in 1912, it originally housed the machine shop of the His Master Voice (HMV) gramophone production factory campus at Hayes that by the 1960s employed 22,000 people.

It is said to be the only remaining factory building in Europe designed by Arthur Blomfield and Sir Owen Williams. It was built by the Trussed Concrete Steel Company with a reinforced concrete frame, with posts and beams using the Kahn system of reinforcement patented in 1903 by Albert and Julius Kahn in Detroit, USA.

Workspace plans to refurbish the Grade II* listed factory building which will provide 38,000 sq ft of space tailored to the needs of small businesses with a particular focus on creative industries. One of the existing tenants to be retained will be the Vinyl Factory which specialise in producing high quality, limited edition, vinyl records.

Workspace chief executive Jamie Hopkins said: "We are delighted to have secured approval for Enterprise House in Hayes, a location that will benefit greatly by the arrival of a Crossrail station adjacent to the property. Enterprise House is one of a number of properties, in similarly advantageous locations to Crossrail, which Workspace is redeveloping.

“This is part of our wider redevelopment programme to enhance both core operational income and capital values by repositioning properties. The Enterprise House development will provide tailored space to the needs of small creative businesses, a capability which is at the heart of Workspace's key strengths."

The wider redevelopment of the 150-acre Old Vinyl Factory campus is being led by Cathedral Group, and parent company Development Securities.

Bristol City Council has called on Royal Institute of British Architects (RIBA) Competitions to stage an international contest to design a new arena for Bristol.

The Bristol Arena project is a large indoor multipurpose arena, to be built on the former diesel depot site close to Temple Meads railway station in the city centre.

Then council is aiming to have construction completed and the arena open by summer 2017. Budget for the arena project is £90m.

Multi-disciplinary teams will have the opportunity to design the 12,000 capacity entertainment arena. It is expected that the winning team will have architectural, structural and building engineering capabilities as well as experience within the performance venue field and significant knowledge of the creation and development of urban spaces.

George Ferguson, Mayor of Bristol and an architect himself, said: “The Bristol Arena is key to the city region's future and will act as a major catalyst to the development of the Temple Quarter Enterprise Zone. We have to grasp the opportunity to design a building that not only works really effectively but is an inspiring place that enriches this new quarter of the city.

“I want the Bristol Arena to become the arena of choice for performers, as well as offering an excellent visitor experience. As an architect I recognise that the design of the building is critical in achieving this. RIBA Competitions has helped to deliver some of the most outstanding buildings around the UK and is well placed to help us to secure the best possible design team.”

Expressions of interest are invited from suitably qualified design teams worldwide and must be submitted by Thursday 18 September 2014. A shortlist of five will then be selected to participate in the design phase of the competition. For further details see www.architecture.com/competitions.

Construction industry output in June is estimated to have risen by 5.3% year-on-year and by 1.2% compared with May 2014.

June saw year-on-year increases in both new work and repair & maintenance of 5.4% and 5.0% respectively.

However, quarterly output remains 10.3% below the pre-crash boom.

The second quarter of 2014 maintained output levels seen in the first quarter, with zero growth. Quarterly growth is estimated at 0.0%, an upwards revision from the previous 0.5% assumption used in official estimates for gross domestic product (GDP).

However, the annual growth between Q2 2014 and Q2 2013 was estimated to have increased by 4.8%.

The Office for National Statistics (ONS) said that the quarterly output in the construction industry all work series has steadily increased since Q1 2013 and in Q2 2014 was estimated to be 6.7% higher than in Q1 2013.

Despite this increase, all work remains 4.1% below its post economic downturn peak in Q2 2011 and 10.3% below its pre economic downturn peak in Q1 2008.

The growth in construction output since Q1 2013 was a result of increases in both new work and repair & maintenance. New work increased 6.7% in Q2 2014 although the series remained 8.5% lower than its post economic downturn peak in Q2 2011 and 12.3% below its pre economic downturn peak in Q1 2008.

The repair & maintenance statistics since Q1 2013 show less volatility than the new work numbers but similarly to new work, from 2013 onwards, there has been a steady increase in the volume of repair & maintenance work. This series was estimated to be 6.9% higher in Q2 2014 than in Q1 2013 and has produced seven consecutive quarters of growth.

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EC Harris head of strategic research & insight Simon Rawlinson said that the data“shows that growth in output has ground to a halt in the second quarter”.

He added: “Considering that recent GDP data suggested that construction had contracted by 0.5% in the second quarter, the data is positive, but provides no room for complacency. The star performing sector in the quarter has been industrial – with activity driven both by factories and distribution.  Residential also continues, as would be expected, to grow steadily.

“The commercial sector is bumping along, but with increased confidence and much wider availability of funding, activity can be expected to pick-up later in the year as projects proceed to site in a wider range of markets in the UK.

“Data from 2014 so far points to a real challenge for contractors and clients.  If growth in workload is so steady – why are resources so constrained so early in the cycle?  Clearly part of the answer lies in the regional concentration of activity and the burst of procurement activity that is currently taking place.  However, the wider market may also being talked up as localised sectors shift into overdrive.”

He said that the construction recovery “remains at an early stage and is yet to cemented by a step change in workload”.

Mr Rawlinson concluded: “The challenge for the second quarter is to ensure that projects in the pipeline remain viable and actually get built.”

Two construction workers were lucky to survive after being hit by a 5kg steel pole that fell from nine floors above them.

Ryan Smith, 31, damaged a vertebra and had to wear a neck brace for several months as a result of the incident at a renovation project in Bournemouth on 16 July 2013. Co-worker Paul Martret, 42, suffered a fractured elbow from the blow.

East Dorset magistrates heard last week that either or both could have been killed by the falling object, which was knocked into a stairwell during work from a temporary platform.

Harbourview Developments Ltd appeared in court as the principal contractor for the refurbishment and conversion of two properties on Christchurch Road.

The work involved removing a stairwell and converting it into a lift shaft. A temporary platform was created using a series of scaffold planks resting on a scaffold tube structure, which was then put in place over the opening to the stairwell.

An investigation by the Health & Safety Executive (HSE) established that work had started to fit a series of vertical and horizontal steel sections around the stairwell to facilitate the construction of additional floors and walls. The installation of the steel sections involved chipping concrete around the edges underneath the temporary platform, which created a series of gaps up to 160mm wide along the edges.

On 16 July 2013, a subcontractor placed a 1.4-metre long, 5kg piece of steel on a structural beam running parallel to the temporary work platform in order to step over it. However, he knocked the steel as he raised his leg, sending it plunging into a gap in the stairwell and towards the workers nine floors below.  They were unable to move away in time and it struck them on their back and elbow respectively.

Magistrates heard the incident could have been avoided had Harbourview Developments Ltd better managed the temporary works to ensure there was no risk from falling materials. 

The Poole-based company, now in liquidation, was fined a token amount of £1 after pleading guilty to breaching Regulation 8(b) of the Work at Height Regulations 2005.

A bankrupt building boss is serving 27 months in prison for a string of offences including fraud and running four separate building companies despite being disqualified as a director.

The conviction of Trevor Lawrence – also known as Trevor Fail – follows an initial investigation by the Insolvency Service and a full criminal investigation and prosecution by the Department for Business, Innovation & Skills (BIS).

Trevor Lawrence, 50, also pleaded guilty to acting as a director whilst a disqualified along with seven other related offences including three counts of fraud. He was sentenced on 14 July 2014 at Northampton Crown Court. The judge also disqualified him from acting as a director for seven years.

Commenting on the sentence, BIS deputy chief investigating officer Ian West said: “This was a particularly blatant example, of offending where members of the public were defrauded of substantial amounts of money, and where enforcement agencies working together have ensured that the perpetrator has been penalised for his crimes.

“Many customers lost substantial amounts of money paid in advance for projects not completed which demonstrates the risk to the public that such an individual poses when they breach orders and undertakings whilst clearly unfit to manage and control such businesses.”

The court heard that Trevor Lawrence was adjudged bankrupt for a second time in July 2007 in the name of Trevor Fail; his previous bankruptcy was in the name Trevor Lawrence. As a result of his bankruptcy, he was not allowed to run a limited company. In September 2007, he had also been disqualified from acting as a director of a limited company for a period of nine years as a result of his conduct as a director of another building company, Silverstar Construction Ltd, which had been wound up in September 2006.

Between July 2007 and June 2011, despite being disqualified, acted as a shadow director and continued to manage building companies, namely Astone Building Solutions Ltd, All Seasons Building Solutions Ltd, Acorn Building & Construction Ltd and Gadsby & Fay Ltd.

It is not suggested that the companies were completely fraudulent. Building work was undertaken but there are insufficient records to determine what proportion of that work was carried out, or not carried out and to what standard.

On behalf of Astone Building Solutions Limited, Trevor Lawrence submitted invoices to one client with a total claim for VAT amounting to £30,000 despite the company never having been registered for VAT.

The last company, Gadsby & Fay Ltd, went into went into administration in June 2011, leaving contractors unpaid to the value of £60,000.

From September 2007, Trevor Lawrence operated as a sole trader under the name of Allbright Building Solutions. He took substantial deposits from two customers, and in breach of his bankruptcy restrictions, used a name other than that which he had been adjudged bankrupt and failed to inform them of his bankruptcy status. As with the limited companies, he failed to progress the building works and two customers lost £30,800 between them.

Mr Lawrence was sentenced to 27 months for each fraud act offence, to run concurrently and a total of 8 months for the Company Director’s Disqualification Act (CDDA) 1986 and Insolvency Act offences to also run concurrently: a total of 27 months.

BIS has started confiscation proceedings against Mr Lawrence.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The order book stands at approximately £600m.

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

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

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

UKATA

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Building services contractor Spie has acquired Scotshield Fire & Security.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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