RICS: July house price growth at three year low The latest data from RICS has shown that house price growth continued to slow in the UK in July while key indicators covering price expectations, buyer enquiries, agreed sales and new instructions all remained firmly negative. Simon Rubinsohn, RICS Chief Economist, comments on the latest findings from the Residential Market Survey: “UK house price growth posted the lowest survey reading in three years in July.  Just 5% more respondents nationally saw a rise rather than fall in prices, a downward trend that is evident across the UK. The London price indicator remains more downbeat (net balance of -33%) which is broadly consistent with an outright drop in prices in the capital. As price growth slows for now, near term price expectations across the UK were negative for the third month in succession with 12% more respondents predicting a decline in house prices over the next three months. As activity falters, interest from new buyers in the UK also continues to wane, with the results showing a fourth consecutive month of falling demand (net balance of -27).   The need for more houses Lack of stock in the housing market continues to cause ripples, with new instructions falling again in the month of July.  33% more respondents to the survey have seen a fall in new instructions and supply is at or around record lows in most parts of the UK.  In line with the dip in demand and the worsening supply position, sales declined sharply. Across the UK, 34% more respondents reported a fall in transactions, with the monthly pace of decline in both July and June at the fastest since 2008. This reflects a continuation of a trend that started back in April following the implementation of the tax surcharge on investment purchases. Anecdotal reports provided by contributors to the survey suggest both the tax change and the ongoing fall-out from the EU referendum are contributing to the current mood in the market. However, looking into the comments left by members suggests conditions vary markedly between agents. A large portion of respondents note, after an initial wobble, activity has returned to normal, while others feel Brexit has only had a very modest or negligible impact. Year ahead Significantly looking a little further out, key RICS indicators are up in July from June and show both sales and price expectations at the 12-month time horizon returning to positive territory, albeit relatively modestly so and well down on the numbers recorded through 2015 and the early part of this year. The housing market is currently balancing a raft of somewhat mixed economic news alongside the latest policy measures announced by the Bank of England, which have already begun to lower cost of mortgage finance. Against this backdrop, it is not altogether surprising that near term activity measures remain relatively flat. However the rebound in the key twelve month indicators in the July survey suggest that confidence remains more resilient than might have been anticipated. Critically, it is hard to escape the stark message regarding supply that is evident in the latest set of results with RICS data showing inventories on agents books around historic lows on average. This is a long running story that may have been exacerbated by recent events but clearly needs urgent action from the new government.” Andy Sommerville, Director of Search Acumen, comments: “Today’s figures are one of the first indicators of the industry’s perspective following the Brexit decision and, although there has been a significant fall in activity in the past three months, the decline is one of smaller proportions than many were expecting. After the sharp initial fall in the midst of the Brexit vote, July’s survey shows that interest in the property market has continued to decline for the fourth consecutive month. However there is light at the end of the tunnel, and such doom and gloom in the sector could be coming to an end. Looking forward, the Bank of England’s rate cut last week will come as positive news to the market as current and potential homeowners will look to benefit from the attractive mortgage deals available. We anticipate the industry will start feeling this impact in the months ahead and we may even see a small surge in property transactions, especially as stability begins to return to the political system providing a more certain, investible future for consumers. This being said, in the short to mid-term, it is likely that housebuilders will slow down output of new homes in the wake of Brexit uncertainty, forcing supply and demand figures even further apart. The knock-on impact of this could have much more profound long-term implications for the market than the monthly rise and fall in transactions.” Randeesh Sandhu, CEO of Urban Exposure, said: “Today’s RICS Residential Market Survey backs up other recent evidence that the UK housing market is bearing some of the brunt of the Brexit vote in the immediate term. But looking further down the line, the survey also suggests agents have confidence that conditions will improve in the medium term, with twelve month price and sales projections edging back into positive territory.” Reassuring comments in today’s survey from some agents that activity has either picked up after an initial wobble or that they have only felt a modest or even negligible impact thus far further underlines how the picture is not all gloomy as some commentators would have us believe, but in fact mixed. Market weakness may persist alongside continued uncertainty during the autumn selling season as the first major indicators of the impact of the EU referendum vote emerge. We retain a positive overall view on UK housing. The survey results show inventory on agents books around historic lows on average further exacerbating the long term issues around supply and demand. This will require urgent government action to turn around, though will serve to underpin market fundamentals over the medium to longer term alongside the historically low interest

20 August 2016 – by Jess Harrold Businesses could be forced to pay up to 20% higher business rates than they should, without any right of appeal, under new government proposals. As a result the biggest ratepayers could be tens of millions of pounds out of pocket. The plans were contained in draft regulations for England put forward by the Department for Communities and Local Government this week. They propose that when considering an appeal, the Valuation Tribunal should order a change in the rateable value only where the original valuation is “outside the bounds of reasonable professional judgement”. That margin of error can be defined by courts as between 10% and 15%, but can be as high as 20%. Jerry Schurder, head of business rates at Gerald Eve, said the move could, in effect, outlaw business rates appeals. He said: “Businesses will be fuming that these proposed changes could in effect end the appeals process, all but removing the opportunity for firms to reduce their rates bills. Appeals could fall on deaf ears, with many dismissed because the Valuation Office Agency’s assessments were ‘within the bounds of reasonable professional judgement’.” All the content from this weekís magazine, including this article, is available in the new app. BCSC chief executive Edward Cooke said: “Despite numerous calls from business organisations for earlier and more open provision of the evidence used to determine this significant tax, government seems intent on making challenging rating decisions as hard as possible.” On its website, the DCLG said: “The government is committed to delivering an improved business rates appeals system. There is widespread agreement that the current system is broken and in need of reform. By the end of March 2016 the VOA had cleared nearly 666,000 appeals on the 2010 rating list. “While further progress will be made as VOA resources are transferred from revaluation 2017 to resolving appeals, too many appeals remain held up for too long, creating costs and uncertainty for businesses and for local authorities.” Click here to find out how it might work Source link

The London Design Festival will be taking place from the 16th to the 24th September. This event looks to showcase what makes London one of the design capitals of the world. The Festival is in its 15th year and will be held in a number of different locations across the city in in September in order to display some of the top names in design. There will be a wide variety of things on offer during the jam packed 9 days of the festival, meaning that there will be something to suit everyone. With a range of product launches taking place as well as activities and exhibitions to look around, the London Design Festival is the ideal place to see the latest trends and best designs created this year. The Festival seeks to celebrate the broadest scope of design, from the local to the international. Alessi the Italian Design Factory, will be unveiling their Autumn/Winter products at their flagship store in Mayfair. Dedar will be at the Decorex International 2017, with a display of their latest wall coverings and Chinese lacquerware which has been designed to be perfect for use in the hospitality sector. Visitors to Decorex will also see the textile manufacturers, Vanderhurd who will be holding a launch for their new rug collection. Vispring will also be involved with the London Design Festival this year, showing visitors their exclusive and limited edition collection of beds at Decorex 2017. For those wanting something more immersive, Lema, the Italian furniture brand will be holding an exhibition which has been called ‘Matter of Scale’. The exhibition will take place at their showroom in King’s Road. The exhibition will feature photographs by Santi Caleca, of architectural models. At the Smallbone of Devizes: ‘Meet the Maker’, Guests will have the opportunity to meet the joiners working at the Wiltshire workshop who will also be offering amazing artisanal wood and leather workshops.