Saturday, 14 December 2013 Property Matters INDUSTRY Construction up in October ONS construction data shows that production was 5.3% higher in October than a year earlier, boosted by strong growth in housing projects and infrastructure. Overall construction output rose by 2.2% in October, while private housebuilding was 19% higher than the same month last year. Chris Williamson, of data provider Markit, said: These data are encouraging in respect to the sustainability of the UK economic upturn, suggesting that recent developments have encouraged home builders to start more homes, boosting housing market supply to help meet buoyant demand, and that businesses are also feeling more confident to make investments in property and infrastructure. Building output from earlier in 2013 was also revised up, and the ONS said: Revisions to the quarterly data from the first quarter of 2012 would produce a revision of 0.1% to GDP in both the first quarter and third quarter of 2013. That would boost growth in the first quarter to 0.5%, and in the third quarter to 0.9%. Financial Times (Web) The Times, Page: 64 The Guardian (Web) The Independent (Web) The Sun, Page: 2 The Press and Journal, Page: 28 Yorkshire Post, Page: 4, 16 Heathrow expansion could hit prices Tens of thousands of homeowners in London could see millions wiped off the value of their property if Heathrow expands, campaigners and estate agents have warned. Evening Standard, Page: 2 HOUSING Less houses for sale in London New figures published by Countrywide show the number of homes coming on to the market in the capital has been falling steadily since May, and now stands 21% lower than a year ago. Nicholas Ayre, managing director of Home Fusion, commented that the shortage of homes was leading to a vicious circle as owners delayed selling up because they could not find homes to move into. The Standard notes that estate agents are increasingly reporting the return of the pre-recessionary practice of “gazumping”, from central London to the suburbs. Evening Standard, Page: 28 Homelessness rising Homelessness has increased for three consecutive years, partly due to housing shortages and cuts to benefits, with an estimated 185,000 people a year now affected in England, a report says. Research by the Joseph Rowntree Foundation and Crisis found almost one in 10 people experience homelessness at some point in their life, with one in 50 experiencing it in the last five years. The Times, Page: 39 The Guardian, Page: 16 The Independent, Page: 1 Independent I, Page: 5 Whitechapel in the spotlight The FT explores Londons Whitechapel and finds that with the Crossrail train line set to open in 2018 and a flurry of new construction projects, leading property agents and developers speculate that the area could see house prices rise 26% by 2018, outperforming prime central London by 6%. Financial Times, House and Home, Page: 5 MORTGAGES Specialist lenders highlighted The Times reports that would be home owners who are turned down for a mortgage because of minor anomalies on their credit files should look to smaller lenders. Tipton & Coseley, a building society in the West Midlands, says in its guide for brokers that its common sense underwriting means that it will “ignore any defaults or adverse credit associated with mobile phone companies” as well as any County Court judgments brought by water companies. Meanwhile, Chris White, chief executive of Hinkley & Rugby, says: Putting trained and experienced human eyes on each case, we can accurately see if an application meets our underwriting criteria and is appropriate for the society and for the borrower. If we can lend, we will. The Times, Page: 74-75 Virgin Money joins in Virgin Money has become the latest lender to offer 95% mortgages under the Governments Help to Buy scheme to make more home loans available to borrowers with small deposits. The Guardian, Money, Page: 5 The Independent, Page: 61 FIRMS Bellway boosted Bellway has said that Londons rising housing market had boosted business as its selling prices were swollen by a sale of expensive apartments in Chelsea. The sales have pushed Bellways average selling price to £205,000 in the first six months of the financial year. The firm completed the sale of 25 apartments at its Chelsea Reach scheme at an average price of over £700,000. Separately, Martin Waller in his Tempus column says that to look at the share price graph of Bellway or any large housebuilder you have to wonder just how far the runaway growth has to go. Although for now, he would not bet on the bubble bursting any time soon. He suggests that shares in Carillion, which have risen by 16% since the summer still have further to go and that Tritax Big Box is an attractive investment. The Times, Page: 70 Daily Express, Page: 65 Evening Standard, Page: 63 Yorkshire Post, Page: 12 PRIME High maintenance According to new research from Beauchamp Estates and DataLoft, owners of Britains most expensive homes are paying £250,000-a-year to maintain their properties. Super-prime homes in London have sold for an average of £26.9m this year, but this cost is only the beginning. On average, they will pay £2,143 on council tax, £20,000 on utility bills, £50,000 on security, £20,000 on cleaning, £30,000 on a housekeeper, £67,250 on insurance and £6,000 on a gardener plus other expenses. The Daily Telegraph, Page: 5 Daily Mail (Web) Evening Standard, Page: 40 Look long-term in London The average price of a prime London home will climb to more than £6m in the next 30 years, investors and money managers say, suggesting the capitals housing market will retain its attraction as a long-term investment opportunity. Financial Times, Page: 4 RENTAL Overseas landlords Research by UHY Hacker Young has found that the number of landlords based abroad investing in UK buy-to-let property has surpassed 2m for the first time. The data, which refers to individual buyers rather than corporate property investments, shows a 39% increase in overseas landlords buying-to-let in the UK over the 5 year period to March 2012. Mark Giddens, head of private client services at UHY Hacker Young, comments: UK property is seen globally as a safe haven from the effects of a financial crash or from national governments’ interference in the assets of private individuals. This has driven fierce demand for prime property in London and the south east in particular. Financial Times Brits face ban on renting out holiday homes The Daily Mail reports on new laws set to be passed that could prevent hundreds of thousands of Britons from renting out their holiday homes in Spain and France. The laws will also prevent travellers from Britain renting property from private owners. In France, a crackdown on holiday lets in Paris, Lyon and Marseille is expected next week. If the new law is a success, the rest of the country could follow suit. In Spain, the authorities are expected to ban unlicensed rentals next spring. Under the new rules, those with second homes in Spain will need a licence from the local council, which could incur a fee. They will also have to meet strict conditions, such as being contactable 24 hours a day to deal with problems such as water leaks or power blackouts. Daily Mail, Page: 6 HOTELS Scottish hotels strong BDOs latest hotel survey has found that Scottish room yield rose by 13.5% in September, substantially higher than the 3.7% in England and 1.6% in Wales. The Press & Journal, Page: 29 The Herald, Page: 22 The Scotsman, Page: 35 ECONOMY Rates will remain low Spencer Dale, the Bank of Englands chief economist, has said the Bank will not raise interest rates until Britain has enjoyed a strong period of prolonged growth resulting in higher real incomes and lower unemployment. Mr Dale said that when rates do rise it will be a sign that the UK economy has finally turned the corner for home. He also warned that a breakdown of trust in banks by businesses could hamper Britains economic recovery. Many companies were let down by their banks during the financial crisis, and I fear that many will be reluctant to return to a business model which relies on their banks providing liquidity and support in times of need, he said. Additionally, Mr Dale cautioned that the Bank was fully aware that Britains housing market has a microwave-type quality with a tendency to go suddenly from lukewarm to scalding hot. He said the Bank now had more tools to deal with that risk than in the past. Financial Times, Page: 2 The Guardian, Page: 45 The Independent, Page: 53 The Daily Telegraph, Business, Page: 33 Daily Mail, Page: 2 The Scotsman, Page: 35
Posted on: Sat, 14 Dec 2013 06:38:11 +0000
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