Uncertainty is set to creep into the UK housing market due to stamp duty changes, the European Union referendum and forthcoming regional elections, it is claimed. Overall short term confidence in the market has flattened following the rush from buy to let investors to beat the extra 3% imposed on additional homes at the start of April, says the latest monthly survey report from the Royal Institution of Chartered Surveyors (RICS). Survey respondents say that the uncertainty is fuelled by stamp duty changes, a weaker pound, the UK potentially leaving the EU (Brexit) and devolved elections in Scotland and Wales and local elections in England. The report also shows that the rate of house price inflation is slowing with indicators pointing to more modest house price gains and house prices have fallen further in London than elsewhere. These factors have been most strongly felt in central London, where 38% more respondents expected to see house prices fall over the next three months. The report also says that across the UK, while expectations around the number of new house sales peaked following the Chancellor’s Autumn Statement, this trend has reversed with 2% more respondents expecting to see the number of sales fall rather than rise over the coming months. Confidence around house price inflation has also dampened with 17% of respondents (net balance) expecting to see prices rise over the next three months, compared to 44% (net balance) in December. However, the longer term outlook suggests that prices will still be expected to rise by more than 4% each year for the next five years across England and Wales, with prices in London projected to grow by a broadly similar amount rising by 3% each year over the same period. Despite, the increased rates of stamp duty tax, now expected to be paid by prospective landlords, rent inflation, while expected to increase, is not predicted to rise any faster than it has in previous months. Although over the next five years respondents continue to anticipate rents will increase by an average of 4.5% per annum, there is no indication yet that tax increases are being passed on to the tenant. The expected rate of rent of inflation has remained constant for the past year at around 3%. ‘As expected, the buy to let rush has now run its course and, as a natural result, the market is starting to slow. But there are other significant factors that are currently weakening short term confidence in the UK property market,’ said Simon Rubinsohn, RICS chief economist. ‘Elections inevitably bring with them periods of uncertainty in the market, and our figures would suggest that next May’s devolved elections are no exception. Likewise, the EU referendum, is likely to be an influencer in terms of the damper outlook for London in particular,’ he added. ‘However, all indications suggest that whatever the outcome of the forthcoming elections and referendum, in the long term, the imbalance between demand and supply will still exert a strong influence on the market, with house prices expected to rise by close to 25% over the next five years,’ he concluded. BOOKMARK THIS PAGE (What is this?)      Source link

An analysis of the insurance claims of big contractors reveals that insurance claims within the construction industry continue to rise. Insurance broker JLT surveyed 25 of the UK’s largest building and civil engineering contractors and analysed their insurance claims over a five year period between 2009 and 2014. This was then compared to similar research carried out in 2014 which looked at claims made between 2007 and 2012. It found that, despite changes introduced to improve the way civil claims are handled, insurance claims within the construction industry had risen sharply. Against a backdrop of civil litigation reforms introduced in 2013 following the Review of Civil Litigation Costs, otherwise known as the Jackson Report, JLT found that claims made against construction firms between 2009 and 2014 increased by 19% compared to research carried out two years earlier. By contrast, the average cost of claims fell 3% during the same period – from £24,306 in 2014 to £23,700 in 2016 – possibly an early indication that the reforms are succeeding in tackling claims inflation. JLT’s Employers’ Liability Claims Benchmarking report also says that the average time it took to settle a claim rose 11% from 916 days to 1007 days, which it suggests could be a consequence of the changes to claimant solicitors’ business models as a result of the Jackson Report, which has subsequently increased caseload numbers.  Dave Cahill, from JLT’s construction team, said: “Given the reforms introduced in the Jackson Report, the rise in claims frequency is surprising. It is unclear whether these legal changes are working effectively for major UK contractors, and it’s possible we may not see this reflected in the data for another couple of years. Contractors hoping for an immediate improvement in the claims landscape are clearly going to be disappointed. “Whilst this period of uncertainty continues, our advice to building contractors is to use claims defensibility techniques to identify any weakness in the claims process and deliver improvements to procedures. This will ensure that claims leakage is kept to a minimum and that the total cost of risk is minimised.”         This article was published on 11 Oct 2016 (last updated on 11 Oct 2016). Source link

Millboard®, the leading manufacturer of premium wood-free outdoor flooring announces that it has been awarded ISO 9001, ISO 14001 and OHSAS 18001 certificates. Millboard has achieved the internationally recognised ISO 9001, ISO 14001 & OHSAS 18001. 23rd June 2016 – Millboard®, the leading manufacturer of premium wood-free outdoor flooring announces that it has been awarded ISO 9001, ISO 14001 and OHSAS 18001 certificates. This follows independent audits of their quality management systems, environmental policies and occupational health and safety management systems carried out by Alcumas ISOQAR a certification body accredited by The United Kingdom Accreditation Service (UKAS). Millboard is now part of an elite group of organisations in the forefront of certifying to this international standard. ISO 9001 requires Millboard to have a quality management system in place to ensure consistency and improvement; leading to high levels of performance and customer satisfaction. ISO 14001 requires Millboard to have an environmental policy and action plan to manage their impact on their environment. OHSAS 18001 recognises that Millboard assesses risk and implements an effective occupational health and safety management system to promote a safe and healthy working environment. Paul Boylin, Millboard Marketing Manager said: “We are proud of these recent accolades which are testament to the exacting standards that we uphold at Millboard. This is of paramount importance both to our staff and to our customers. Attaining these accreditations is a fantastic achievement for Millboard and shows our continued commitment to quality, environmental and health and safety best-practice.” As a certified organisation, Millboard is committed to continuous improvement and will be assessed annually to ensure progress is being maintained. ENDS. About Millboard The Millboard Company Ltd is the leading manufacturer of premium wood-free outdoor flooring. The company employs over 100 people based in Warwickshire and proudly designs and manufactures in Great Britain.Recognised as the leading brand for wood-free alternatives in the UK, Millboard is a unique, wood-free alternative to composite and timber decking manufactured from a unique polyurethane resin blend.  The product range consists of handcrafted Enhanced Grain collection moulded from smooth timber for a textured appearance and a Weathered Oak collection moulded from 100 year-old reclaimed timber. Anti slip, maintenance free and UV stable, moulded from carefully selected timbers and hand-coloured, Millboard is as beautiful as hardwood yet designed to outsmart it. Therefore Millboard is able to recreate a product that combines the beauty of real timber with the high performance of a unique wood-free material. In 2015 The Millboard Company Ltd was awarded the accolade of one of the best 1000 Companies to Inspire Britain by the London Stock Exchange. www.millboard.co.uk   Press enquiries to:SMPR – The Wolston Priory, Priory Road, Wolston (nr. Rugby), Warwickshire, CV8 3FXTel: 02476 546150Mob: 07715 174 911Email: nicky@simplymarcomms.co.uk Hi-resolution imagery is available on request. Interviews can be arranged by prior appointment.  Source link

Buyer demand rises for the first time in seven months The latest report from RICS has found that new buyer enquiries increased for the first time since February, albeit the pick-up was only modest. According to RICS, new instructions to sell slipped further, with the lack of supply firmly underpinning prices at the headline level. What’s more, price expectations rose at the three and twelve month horizons, although both indicators remain softer when compared to the start of the year. The national price indicator crept higher in the latest results, with a net balance of +17% of respondents noting an increase in prices (up from +13% in August). This measure has now risen in two consecutive reports having moderated for five months in a row between February and July. The regional breakdown shows prices continue to fall in Central London and the North East, although the pace of decline eased noticeably across the latter. Elsewhere, most other parts of the UK saw prices climb higher over the month. Looking ahead, near term price expectations continued to recover gradually at the headline level, with the national series posting the strongest net balance since March. Conversely, three month price expectations slipped back into negative territory across London, after registering a broadly neutral reading in the previous report. Anecdotal evidence suggests that uncertainty following the EU vote, along with Stamp Duty changes, are both continuing to adversely impact the top end of the market in particular. At the twelve month horizon, the net balance data shows prices in the capital are expected to see little change, making London the only area in which prices are not projected to rise over the year ahead (this again largely reflects the picture in central areas and the higher end of the market). Back at the headline level, new buyer enquiries increased for the first time in seven months, with a net balance of +8% more respondents reporting a pick-up in demand (rather than a decrease). This measure improved from -5% (revised from an initial figure of -7%) previously and has shown a significant turnaround relative to June, when a balance of -34% was posted. Nevertheless, the headline figure masks considerable variation across the UK, with some agents seeing a more stable trend in demand emerging as opposed to any recovery just yet. Alongside this, new sales instructions fell once more, marking the seventh straight month in which new listings have declined. In fact, with the exception of a few months around the turn of the year, the flow of new stock coming to market has dwindled continuously over the past two years. As such, average stock levels on estate agents books remain exceptionally low. Consequently, the imbalance between marginally increasing demand and a real lack of supply is firmly underpinning prices. In addition, the lack of choice for would-be purchasers also appears to be restricting overall sales market activity. Indeed, nationally, agreed sales were broadly unchanged for a second month running having declined sharply from May through to July. The regional picture remains mixed however, as transactions rose in six of the twelve regions/countries covered in the survey and fell across the remainder. Going forward, respondents’ optimism towards the sales outlook improved, with growth expected across most parts of the UK over the next three months. Further out, over the next twelve months, contributors are projecting sales to pick-up firmly in all areas. On a UK-wide basis, a majority of 59% of respondents feel house prices are around fair value at present, although 37% do feel their local market is overpriced to some extent. The regional breakdown shows over 60% of contributors in both the South East and London sense house prices to be above fair value currently. Within this, over 20% of London respondents feel prices are ‘very expensive’ relative to fundamentals. Nevertheless, this proportion has remained broadly stable over the past six months. Northern Ireland (89%), along with Scotland (83%), currently exhibit the highest share of contributors who deem residential property in their local market to offer good value. In the lettings sector, tenant demand increased firmly during September (non-seasonally adjusted figures), with the reading signalling the strongest rate of growth in twelve months. Landlord instructions were more or less unchanged at the headline level, but did increase notably in London and Wales. London remains the only area in which rents are expected to come under pressure in the near term, while virtually all other areas are anticipated to chalk up solid gains. Andy Sommerville, Director of Search Acumen, comments: “Residential market sentiments this September show that house prices across Britain have risen for the second month in a row and the storm in the housing market is settling. Enquiries from buyers have picked up for the first time since February, representing an increase in national demand as confidence seemingly grows. In addition, when looking ahead we see that house price expectations for the three and twelve month horizons have received a new lease of life after a post-Brexit chill.” Despite a broadly positive outlook on a national level, continually falling prices in the capital reflect the uncertainty in our capital’s financial services industry since the referendum. Expectations of a pick-up in inflation due to the recent blows to the pound will not help the unaffordability of homes in the city whilst RICS forecast further drops in supply.” Looking forward to the Autumn Statement, the property sector anticipates the announcement of measures to boost home-building in Phillip Hammond’s first Budget statement. Tackling the growing gap between housing supply and demand will protect our market and allow ‘business as usual’ whilst we await more clarity on our relationship with a fragmented European Union.” Join our mailing list: Source link