London dragging on UK house prices
Posted by The Oracle Group on 20th June 2019 -
INDUSTRY
London dragging on UK house prices
London continues to drag on UK house prices, according to data by the Office for National Statistics (ONS), with the capital enduring the lowest annual growth out of any region with prices falling 1.2% over the year to April 2019. Prices across the UK rose an unadjusted 0.7% month-on-month in April, the first rise in eight months, taking the average property price to £229,000. In England, the East Midlands saw the strongest annual house price growth in April, with a 2.9% increase. Regionally, Wales saw the strongest growth in the UK of 6.7% in the year to April, followed by Northern Ireland at 3.5%, Scotland by 1.6% and England by 1.1%. Northern Ireland remains the cheapest country in the UK to purchase a property, with an average house price of £135,000.
Flats out of fashion with first-time buyers
First-time buyers are bypassing flats and moving straight into houses - leading to a fall in the cost of apartments, official figures suggest. The cost of a typical apartment or maisonette in England has fallen by 2.1% in a year, while other types of property have become more expensive. The cost of detached homes has been rising fastest, with semi-detached and terraced homes also going up, figures from the Land Registry show. Experts suggest people are buying their first home later and are happy to rent a flat, but not necessarily buy one.
FIRMS
Berkeley Homes upbeat despite fall in pre-tax profits
Housebuilder Berkeley Homes has asserted plans to launch more new developments amid a fall in pre-tax profits - which fell 20.7% to £775.2m in the year to April 30. Revenue rose 4.1% to £2.95bn, from £2.84bn the previous year, and chief executive Rob Perrins, stressing that Berkeley had anticipated profits for 2018/19 would be approximately 30% lower than 2017/18, said: “This is therefore a strong set of results, reflecting robust trading in the year and the appeal of Berkeley’s developments,“ adding that it is “vital” for Britain’s next Prime Minister to “drastically reduce the bureaucracy and time surrounding planning applications”.
Construction firm collapses
Construction firm Shaylor Group has fallen into administration, with FRP Advisory in discussion with the company's clients regarding the transfer of sites and supporting workers affected by the closure. A statement from administrators said Shaylor Group had experienced severe cashflow pressures following several project delays.
Investment chief quits Capital & Counties as demerger looms
Gary Yardley, chief investment officer at Capital & Counties, is to leave ahead of the possible demerger of its hefty Earls Court development - one of London's largest sites.
CONSTRUCTION
Better building benefits economy
Mark Reynolds, chief executive of Mace, calls on the next prime minister to focus on boosting the construction industry. With greater investment and support in innovation and new technologies, the industry can not only improve what we build, but can also make a hugely positive contribution towards the social and economic needs of the country, he argues. Mr Reynolds uses updating school and healthcare infrastructure as examples of how investing in construction can have a positive impact on other sectors’ productivity and workforce wellbeing.
Lawyer urges UK 'housing crusade'
Bruce Dear, head of London real estate at law firm Eversheds Sutherland, urges the government to initiate a vastly ambitious housing policy. An innovative British modular housing industry, fuelled by a network of new construction colleges, could take the lead in eliminating housing shortages across the western world. A housing crusade, he asserts, with council and modular housing on the frontline, could be the "optimistic turnaround story" that the country needs.
COMMERCIAL
Flexible offices to expand in major cities
The volume of flexible office stock in Edinburgh and Glasgow is set to more than double in the next five years as demand soars under Scotland's "flex revolution", new research suggests. JLL forecasts that "flex" workspaces will account for more than 3% of the total office stock in both cities by 2023. The report also suggests that flexible office space is set to almost double in Leeds to 6.7% over the next five years. The report suggests that what is driving change in the sector is the fact that landlords and developers are now reacting with their own new concepts, to challenge established players.
RETAIL
Monsoon offers share of profits ahead of CVA
Monsoon Accessorize’s owner Peter Simon will offer landlords a share of future profits worth up to £10m as he attempts to persuade creditors to vote for a CVA which would allow him to reduce the size of his stores and pay less rent. The insolvency procedure has been delayed for several weeks as landlords sought additional sweeteners, including an equity stake in the business.
HOUSING
LGiU launches final Homelessness Commission report
The Local Government Information Unit has launched the final report from the Local Government Homelessness Commission. The report’s key recommendations call for the Government to introduce a sustainable housing and homelessness strategy, with adequate funding, for local variation to be introduced in the Local Housing Allowance, for the introduction of minimum three-year tenancies in the private rented sector, and for the creation of a homelessness prevention toolkit, designed around the needs of local government. It comes as new figures from the Greater London Authority show rough-sleeping in London has hit a record high, with 8,855 people recorded as bedding down on the capital's streets last year.
Britain’s housing market needs a rebuild
Green Party co-leader Sian Berry calls for a rebuild of Britain’s housing market; increases in renters’ rights, taxation changes limiting landlords’ profits and councils allowed to borrow for building homes.
LEGAL
Living in pigsty fails to land husband right to house
A man who moved out of the home he shared with his partner of 37 years and into a former pigsty has lost a court fight for the house. James Glessing and Jane Lazell split up in 2015 and began a legal battle for the smallholding in Upminster, Essex, worth £1m. Ms Lazell denied excluding him from the family house, saying he had chosen to move into the sty. Judge Richard Roberts rejected Mr Glessing's claim for rent and ordered that the entire site and house should be sold and the profits split equally between the pair.
ECONOMY
Bank set to hold interest rates
The Bank of England is expected to hold interest rates again today, with economic growth slowing sharply after a stock-building boost at the start of 2019. The MPC is expected to keep rates at 0.75%. Data released yesterday showed that inflation had fallen to a target of 2% in May, down from 2.1% in April, a development that could give the Bank more breathing space to keep rates unchanged. Core inflation, which excludes more volatile food and energy prices, dropped to 1.7% - the lowest figure since early 2017.
POLICY
Government set to tackle late payments
The Government is aiming to deliver measures designed to tackle late and slow payments, Small Business Minister Kelly Tolhurst has announced. The plans would see Small Business Minister Paul Uppal’s powers strengthened. This would include handing him the ability to fine businesses that do not pay bills within agreed contractual terms. The Commissioner would also be given powers to make firms detail payment terms and practices. Payment plans that ensure bills are settled quickly could also be enforced. However the National Federation of Builders said it believes further action is needed. Richard Beresford, of the NFB, said: "50,000 businesses fail every year because of late payment."
Islands to reveal who owns offshore firms
Jersey, Guernsey and the Isle of Man are to adopt public registers detailing ownership of offshore companies incorporated in their jurisdictions, with fully public registers to be introduced by 2023. The three British Crown Territories have long been under pressure to crack down on their tax haven status. MP David Davis said the move meant "greater transparency and less tax evasion". Labour Shadow Chancellor John McDonnell commented: "We’ve insisted on greater tax transparency, so welcome these moves."
INTERNATIONAL
Google looks to ease housing shortage in San Francisco
Google is preparing to invest $1bn in housing throughout the San Francisco Bay Area, a region which has been plagued by a housing and homelessness crisis that has in part been fuelled by the tech industry. The investment would go toward supporting the development of 20,000 new homes over the course of 10 years, or roughly 68% of the number of units the Bay Area needs to build each year in order to meet population growth.
The Oracle Group: the fun-loving, hard-working, creative-thinking, PRWeek Top 150-ranking, promise-keeping, budget-saving, client-pleasing, content-creating, challenge-beating, brain-storming, award-winning, copy-writing, social-media-bombarding, brand-designing, proof-reading, event-making, reputation-building, marketing and communications group…and the only one to be crowned one of the ‘Best Places to Work in Property’ by Property Week in 2018 and 2019. If you’re looking for an enthusiastic, creative and reliable team to help with PR, design, marketing, events, digital marketing and social media, get in touch with the Oracle Group today.
The Oracle Group
The Oracle Group is a multi-service creative communications agency, providing expertise in five core areas: PR, Marketing, Social Media, Events and Digital. This means we can tailor our approach to each project.
