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Em Morley

The Concrete Centre Shares Hackitt’s Commitment to Building a Safer Future

Published On: May 24, 2018 at 9:46 am

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In Dame Judith Hackitt’s final report for the Independent Review of Building Regulations and Fire Safety, released last Thursday, recognition is given to the importance of using non-combustible materials.

The report states that the use of such materials “inherently provides higher levels of protection”. There is also a call for a “focus on reducing on-going building risk during the occupation and maintenance phase”.

The Concrete Centre, the ready-mix concrete supplier, has supplied evidence to the review, based on its engineering and fire expertise. The company’s Executive Director, Dr Andrew Minson, has said: “It is now evident that buildings degrade, and fire protection is compromised during use of a building, so the choice of non-combustible concrete and masonry is a very good way to reduce these risks.”

The report focuses on Construction Design Management (CDM) regulations and the recommendation for the involvement of the Health and Safety Executive (HSE) beyond the completion of construction, which the Concrete Centre is supportive of. Minson has commented: “We continue to express concerns that fire risk in construction, and during occupancy, have not been a high enough priority.

“In recent years, HSE recognised and acted on the heightened risks from timber framed buildings during construction, and we urge Government to do more to ensure that non-combustible structural materials are used for higher risk, high-rise residential buildings. We also support the report’s clear recommendation that these guidelines be applied more widely.”

A creation of new structures has been recommended by Dame Judith Hackitt, including a structure to validate and assure guidance, a Join Competent Authority for enforcement and an overarching body for competency.

The Concrete Centre believes that choosing non-combustible materials, such as concrete and masonry, for the main structure of a building, will provide the perfect starting point for building a safer environment for all.

UK House Price Growth Continues to Falter

Published On: May 24, 2018 at 9:15 am

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UK House Price Growth Continues to Falter

The Office for National Statistics (ONS) and Land Registry has released its UK House Price Index (HPI).

The UK’s HPI is a quarterly publication, introduced in 2016, and includes data from all residential properties purchased for market value.

Source: HM Land Registry, Registers of Scotland, Land and Property Services Northern Ireland and Office for National Statistics

Source: HM Land Registry, Registers of Scotland, Land and Property Services Northern Ireland and Office for National Statistics

Some comments on the report are as follows:

John Eastgate, Sales and Marketing Director at OneSavings Bank says: “House prices are a reflection of general levels of consumer confidence and these numbers show that whilst we’re not as confident as we were a couple of years ago, equally no one is forecasting anything disastrous for the UK economy. HPI levels in excess of 5% are arguably not sustainable, so we should welcome this more moderate figure, noting that even at this level, HPI is still comfortably in excess of wage inflation.

Set against the backdrop of insufficient levels of new housebuilding, we still therefore face a housing market characterised by increasing affordability challenges and scarcity of supply.  Last week’s research from The National Housing Federation shows the scale of the problem – the country needs 340,000 new homes each year, a figure significantly above the government target, reinforcing the crucial need for a co-ordinated housing strategy.”

Doug Crawford, CEO of My Home Move, comments; “despite the recent downbeat mood and a monthly dip in the average UK house price, today’s data paints a picture of relative strength and stability underpinning the housing market. House prices have maintained a steady growth trajectory, not just through 2018 but also over the whole of the last year. In fact, annual growth has only dipped below 4% or above 5% in two of the last fifteen months. It’s encouraging that in a time of speculation about the wider economy, house prices have continued to plot a steady course.

“What we’re left with is a growth trend in UK house prices that is somewhere below the boom years of 2014 to 2016 – which is welcome news for first-time buyers – but noticeably stronger than the 2011-2013 period, which will reassure homeowners. The general appetite for homeownership is undiminished, and we are entering the time of year ahead of the summer holiday season where good weather can help prompt aspiring buyers to put moving plans into action.

“Clearly, it will take more than rising temperatures to fix the ongoing gap between housing supply and demand. In the meantime, there is no shortage of appealing mortgage deals to help consumers, who will also be helped by recent wage growth and the Bank of England’s continuation of the 0.5% interest rate.”

Thomas Fisher, economist at PwC, said: “Today’s release from the ONS and Land Registry shows that UK house price growth continued to falter in March, while London house price inflation remained negative with the weakest growth rate since 2009.

“While house price inflation of 4.2% in the year to March 2018 is the same as the growth in house prices in the year to February, the shorter-term month-on-month price changes point towards weakness in the market. Across England, house prices in all but one region, the East of England, fell between February and March. For the UK as a whole, average house prices fell 0.2% from the month before.

“For London, annual house price inflation turned negative at -0.7%, the weakest growth rate since September 2009 in the aftermath of the financial crisis. The London housing market has been weakening ever since the Brexit vote in mid-2016 and this shows no signs of letting up yet.

“The growing consistency of house price weakening across regions means that risks are weighted to the downside for the remainder of 2018. We anticipate that UK average annual house price growth in 2018 is likely to slow to less than 4%.”

RLA says Landlords should Seek Advice and Support in Regards to Data Law Changes

Published On: May 24, 2018 at 8:09 am

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New General Data Protection Regulations (GDPR) are swiftly approaching, coming into effect on 25th May. These data protection rules will also apply to landlords.

Analysis by the Residential Landlords Association (RLA) has revealed that landlords will be required to identify the correct legal gateway to allow them to hold and use data, which includes that of their tenants. Further to this, it may have to be shared with 24 different groups of organisations and people.

From sharing the immigration status of a tenant with the Home Office, to sharing data related to a tenancy with local authorities in relation to council tax, landlords will be required to act accordingly. It will also affect data shared to utility companies and with the Department for Work and Pensions where Universal Credit is paid to the tenant.

The RLA is warning that, with less than a week to go before GDPR comes into force, landlords who have not yet prepared will have to seek urgent advice and support, as being fully compliant with this law is essential.

In order to make this vitally important change as easy as possible for landlords, the RLA have made a range of resources available for those who have paid for membership. These resources include:

  • A template privacy notice and forms to hold and use data
  • A checklist for landlords to ensure they are personally data compliant
  • An online course for landlords to better understand the requirements of the regulations 

The association is keen to ensure that all members are compliant with the legislation. The RLA’s Company Secretary, Richard Jones, commented: “Given their complexity, the new GDPR rules pose many challenges for landlords who need to handle and share important data to ensure the smooth running of rental properties and businesses.

“The RLA is concerned about how detailed and far reaching the new requirements are. They pose great risks to landlords if they are not compliant.

“It is vital that all landlords get the advice and support that they will need to ensure they are compliant with the rules.”

Rathbone Survey Reveals Interest in Property Investment is Waning

Published On: May 23, 2018 at 9:45 am

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Results from a survey undertaken by Rathbone Investment Management have revealed that many UK investors are reconsidering the investment potential of properties.

Despite buy-to-let properties attracting a number of people looking to invest over the years as a way of supplementing their income and a clear demand for such housing from tenants, it appears that interest in the industry may be waning.

These results show that of the 1,000 investors and 500 high-net-worth (HNW) individuals polled, 38% of investors in the UK have responded that they no longer view property as a good investment. Many are re-evaluating the cost-effectiveness of properties as an investment, in light of recent tax changes, such as the 3% Stamp Duty surcharge. 

Those who fall into the category of ‘richer’ investors had a more positive outlook. Looking at those with a high net worth who were surveyed, 25% currently own buy-to-let properties. Only 7% have plans to add to their portfolios, and 38% have admitted that they now see property as a poor investment.

Robert Szechenyi, investment director at Rathbone Investment Management, has commented: “Recent changes to the tax and regulatory treatment of buy-to-let has caused investors to take a step back and assess the viability of these investments.”

“Whilst it’s understandable that property, and in particular residential property, has been a popular investment in the past, it’s now making less and less sense.

“Not only are the returns now being impacted by an increased rate of tax, but they can also prove high risk investments due to a lack of diversification.

“Property investments require a large amount of capital to be held in one single asset and landlords will often hold a number of properties within one region.

“Investors who are looking to invest in property, should make sure to assess their risk appetite, look at all alternative options and make sure this property is held within a well-diversified portfolio of investments.”

Residential Index for London: May 2018 Key Findings

Published On: May 23, 2018 at 9:04 am

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Warning Issued for London Economy as Record Numbers Leave Capital

The residential index came about from what the London Central Portfolio (LCP) has addressed as ‘a number of conspicuous issues’ with existing industry data. Published monthly, the index has revealed certain figures for Prime Central London, Greater London and England and Wales.

Key findings for Prime Central London

  • Average prices exceed £2m for the fourth month running
  • Average prices have fallen back for the second consecutive month, after an all-time high in January
  • Quarterly transactions stand at 975, the lowest level since Additional Rate Stamp Duty was introduced in 2016
  • New build transactions have fallen 14.9% year on year

Naomi Heaton, CEO of LCP, comments: “Average prices in Prime Central London (PCL) remain above the £2m mark in March for the fourth consecutive month. This has been largely due to the sale of 14 flats in the Holland Park Villas development between £10 and £33 million each, since November of last year.

“The wait and see attitude of both investors and property owners continues throughout the PCL market. There is therefore very limited stock available and most current vendors need to sell. Consequently, there are some very good opportunities for the few buyers in the market.”

Key Findings for Greater London

  • Monthly prices in Greater London fell by 1.4%
  • Average prices now stand at £629,024
  • Quarterly sales stand at 20,283, following a 12.3% fall, which is the lowest figure since April 2011
  • New build sales dropped for the fifth consecutive month to 15,950
  • Average new build prices stand at £647,570

Heaton says, “as primarily a domestic market, the continuing falls in transactions in Greater London is extremely concerning. This is attributable to caps on mortgages, a lack of affordable housing and the economic uncertainty around Brexit. A loss in buyers’ confidence may result in a further slide in prices and transactions.”

Key Findings for England and Wales

  • Monthly prices in England and Wales dropped by 0.9%
  • Excluding Greater London, prices stand at £255,912
  • New build transactions fell by 0.7% over the year, to 104,748
  • The new build premium compared to existing stock sits at 16.6%

Heaton comments, “the most significant figure in this month’s report is that England and Wales has seen a 21.5% drop in quarterly sales. This is the fifth consecutive fall in transactions, suggesting that England and Wales as a whole is now suffering a lack of confidence and a disconnect between buyer and seller expectations.

“With a lack of certainty in the economic outlook for the domestic homeowner, we would not expect this trend to change until Prime Minister May provides more clarity on post-Brexit Britain. It seems that both first time buyers and second steppers are putting

their purchase decisions on hold for the time being.”

Heaton comments on the creation of the Residential Index: “The LCPAca Residential Index has been established to address a number of conspicuous issues with existing residential indices. Samples offered by high-end estate agents tend to be small and non-representative.

“Nationwide’s HPI represents just 12 per cent of the market, excludes cash purchases and is based on mortgage approvals not actual sales. Rightmove use asking prices data only, whilst RICS Residential Market Survey is largely qualitative. Land Registry’s own published full report is based on a restricted sample, excludes new builds and has a longer time lag.

“Looking to overcome these problems and provide a single reliable residential index, our new report, based on every sale transacted through Land Registry, will provide a much more accurate and in-depth analysis on how the market as a whole, including the controversial luxury and new build sectors, have really fared in Prime Central London, Greater London and England and Wales.”

Find the May 2018 report in full here.

National Approved Letting Scheme latest comments on Tenant Fees Bill

Published On: May 23, 2018 at 8:19 am

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The second reading of the Tenant Fees Bill occurred on Monday evening in Parliament. This latest stage of the new legislation has been passed without the need for a vote from MPs.

Despite a three-hour debate, with 123 of the MPs being landlords themselves, there have only been little to no arguments with the proposal. The arguments that did arise were focused on the unfairness of all letting agents being pigeonholed, despite whether they have previously acted dishonestly or not.

Labour MP Andrew Lewer has commented:“There are hard-working people in this sector and we shouldn’t punish the unscrupulous at the expense of the far more numerous hard-working ones.”

This ban is going to cost letting agents up to an estimated 24% of their income, and it is speculated that as a result, many landlords may feel inclined to leave the industry or increase rents to counteract these costs.

The following quote from Isobel Thomson, chief executive officer of the National Approved Letting Scheme (NALS), has been posted on its website: “It is important that MPs fully understand the implication of the fee ban for their constituents who rely on the Private Rented Sector (PRS) and who will be affected by the ban.

“There will be inevitable increases in rent for tenants and increased costs for landlords, but there will also be a huge impact on agents operating small businesses in their local areas.

“We are urging MPs to use this time to fully assess the impact of the Bill.

“It is crucial that Government looks again at the proposals and consider tenant fees in a broader, coherent framework of regulation planned for the PRS.”

A background report on the Bill has been made available by the House of Commons, explaining the Bill’s provisions and summarises reactions from tenants, landlords and letting agents.