House values in the UK could fall by 10% and up to 18% due to the economic shock that would hit the country if people vote to leave the European Union in the referendum next month, according to the Chancellor of the Exchequer. George Osborne, speaking at the G7 finance ministers’ meeting in Japan, revealed that the forthcoming Treasury analysis on the short term economic consequences of a vote to leave will demonstrate a wide range of negative impacts on families and businesses, including the housing market. It concludes that by 2018, home owners will be hit as growth in Britain’s housing market will be reduced by at least 10% and up to 18% compared to what is expected if the UK remains in the EU, as heightened uncertainty generated by Brexit hits financial markets, consumer confidence and home values.   Independent authorities, including the International Monetary Fund, have warned that if Britain votes to leave the EU then mortgage interest rates would also rise because of financial market instability, meaning fewer people being able to get a mortgage and mortgage costs rising for all. The Treasury conclusion follows warnings from Virgin Money’s Chief Executive, the CEBR, S&P, Fitch and Deutsche Bank about the potential negative impact on Britain’s housing market from a vote to leave the EU. The Chancellor said finance ministers from other G7 countries attending the summit in Sendai confirmed that in their assessment, leaving the EU could cause significant financial market turbulence, affecting families and businesses. The Chancellor also challenged the idea that negotiating a new relationship with the EU would be easy if the UK votes to leave, warning that instead it would be a long, costly and messy divorce. In the coming days the Treasury is going to publish analysis of what the immediate impact will be. Osborne also said that mortgages will get more expensive and mortgage rates will go up. ‘If we leave the European Union there will be an immediate economic shock that will hit financial markets. People will not know what the future looks like. And in the long term the country and the people in the country are going to be poorer,’ Osborne said. ‘That affects the value of people’s homes and the Treasury analysis shows that there would be a hit to the value of people’s homes by at least 10% and up to 18%. And at the same time first time buyers are hit because mortgage rates go up, and mortgages become more difficult to get. So it’s a lose-lose situation,’ he pointed out. ‘We all want affordable homes, and the way you get affordable homes is by building more houses. You don’t get affordable homes by wrecking the British economy. And of course if we left the EU, mortgage rates would go up, it would become more difficult to get mortgages so they’d be hit as well,’ he added. Critics of the new Treasury analysis are likely to point out that the fall in prices is only compared with where they would have been if there was no vote for Brexit. The independent Office for Budget Responsibility predicts a rise of 9.4% over the next two years and a further 5% over the following year. However, most home owners have seen the price of their home rise by 9% in the last 12 months so the government forecast actually suggests that homes would be worth between 0.6% and 8.6% less in cash terms than they are now. However, the run up to the vote on 23 June is having an effect on the country’s property markets. Estate agents are reporting a slowdown in sales and a wait and see attitude. Lawyers are reporting that investors in commercial property are adding Brexit clauses to contracts allowing them to pull out of purchases if the outcome is not favourable. Law firm Nabarro said buyers were putting down deposits that would be refundable if the UK voted to leave. ‘We have seen a marked increase in the number of contracts which include clauses to protect the position of buyers investing in UK real estate ahead of the European Union referendum. Brexit is a leap into the unknown. Brexit clauses are a pragmatic, legal response to that uncertainty,’ said senior partner Ciaran Carvalho. Research from global real estate consultants CBRE shows that 73% of investors in commercial real estate feel the UK’s attractiveness as an investment destination would be damaged by an exit from the EU. Only 7% of investors feel Brexit would improve the UK’s attractiveness. ‘There was just over £14 billion of investment into UK commercial property in the first three months of 2016, some 21% down on the same period in 2015. Early indications are that retail investment is down by around 30% on a year ago, possibly because investors are concerned about the consumer spending outlook in a Leave world,’ said Miles Gibson, head of UK research at CBRE. ‘While there are a wide range of factors affecting investment levels, including global economic conditions, these figures show that investors are unsettled by the uncertainty generated by the Brexit debate,’ he added. A few days ago the developer behind new luxury flats in London said it would give buyers the chance to pull out of purchases if they did not like the outcome of the vote. BOOKMARK THIS PAGE (What is this?)      Source link

Construction sector reacts to ‘Brexit’ Published:  24 June, 2016 The EU Referendum result has caused uncertainty in the construction industry, with many associations and industry bodies calling on the government to react quickly in order to reassure the financial markets. The UK voted to leave the European Union by a narrow margin of 51.9% to 48.1%. Financial markets reacted badly to the announcement, which was made in the early hours of 24 June, 2016. The Pound fell to levels not seen since 1985, while the FTSE 100 index fell 8%, though recovered to a fall of 2.5% later in the day. The housebuilding sector also suffered sharp falls in share prices. The construction industry is now calling on the government to react quickly in order to reassure the markets and establish a framework going forward. The Federation of Master Builders (FMB) warned that government must ensure whatever new immigration system is now put into place provides the construction sector with enough skilled workers to build the homes and infrastructure projects we need. Brian Berry, FMB chief executive, said: “The UK construction industry has been heavily reliant on migrant workers from Europe for decades now – at present, 12% of the British construction workers are of non-UK origin. The majority of these workers are from EU countries such as Poland, Romania and Lithuania and they have helped the construction industry bounce back from the economic downturn when 400,000 skilled workers left our industry, most of which did not return. It is now the government’s responsibility to ensure that the free-flowing tap of migrant workers from Europe is not turned off. If Ministers want to meet their house building and infrastructure objectives, they have to ensure that the new system of immigration is responsive to the needs of industry.” He continued that the UK must also invest in ‘home-grown’ talent by boosting apprenticeship training and providing sufficient funding. He said: “The next few years will bring unprecedented challenges to the construction and house building sector, and it’s only through close collaboration between the government and industry that we’ll be able to overcome them.” The British Property Federation (BPF) said stabilising the pound has to be the government’s first priority. Melanie Leech, BPF chief executive, said: “The priority for the government and the Bank of England must now be to stabilise the position and maintain confidence in the UK. The negotiation process is going to be long and complicated, and there will be many unknowns ahead. Our priority is that the government maintains focus on existing national priorities such as housing and that it makes decisions on major infrastructure projects, such as airport capacity and maintaining momentum around HS2, swiftly.” John Newcomb, managing director of the Builders’ Merchants Federation (BMF), commented: “The BMF fully respects the democratic decision that has been made by the British people and in which our members, their employees and customers have participated. Our priority now is to work together in the BMF and with other trade bodies to make sure the construction industry is properly consulted and engaged in discussions with the government about the implications of the vote to leave the EU. There are many important issues to raise on behalf of BMF members about future changes that impact on jobs and the future of projects and funding that are linked to the government and in some cases to the EU.” Mr Newcomb said the BMF will now participate in discussions with other construction trade associations such as the Confederation of British Industry (CBI), Construction Products Association and FMB about the impact of the decision, before issuing a more detailed statement. The UK Green Building Council (UK-GBC) stressed the importance of the UK continuing to address issues such as climate change and sustainability. Julie Hirigoyen, CEO of UK-GBC, said: “Brexit is already sending shockwaves through the construction and property sector, the scale of which won’t be clear for some time. It will be a tough trading climate, that will impact companies both large and small. “Both economic and political uncertainty will have some people asking whether the green agenda needs to be deprioritised while business goes into firefighting mode. This must and need not happen. Arguably now more than ever we need to minimise future risk, reduce costs, add value for clients, generate new commercial opportunities and ensure we have the best people working as productively as possible. A sustainable built environment is fundamental to these objectives. “UK-GBC will redouble its support of the industry, make the business case for sustainability, and explore more deeply the commercial drivers for sustainability. We will encourage an unprecedented collaboration between progressive businesses, green groups and other trade bodies. We will take the argument to Government that a low carbon, sustainable built environment is good for UK Plc, and that this requires a clear and consistent policy landscape – in or out of the EU.”   Source link

A Helensburgh-based contracting company has been fined after a worker hit an underground cable and suffered burns to his hands and face whilst working on a primary school refurbishment project. Hamilton Sheriff Court heard that on the 1 September 2011 the incident took place at a construction site at Heatheryknowe Primary School in East Kilbride. A worker for Stewart and Shields Limited was digging holes to erect a fence when he struck a 430v underground electric services cable causing minor flash burns to his hands and face. The Health and Safety Executive investigated the incident and found that site reports containing information about ‘buried services’ were made available to the company but they had failed to provide this information to workers or clearly mark where the power lines were situated underground. They should also have also ensured that workers using digging devices were adequately trained. Stewart and Shields Limited pleaded guilty to breaching Regulation 34(3) of the Construction (Design and Management) Regulations 2007 and Section 33(1)(c) of the Health and Safety at Work etc. Act 1974 and were fined £7,500. HSE Inspector Graeme McMinn said: “There is an obligation on contractors to ensure that workers are informed of the dangers from buried underground services, and the need to ensure those services are located, checked and clearly marked. For further information and guidance please visit: http://www.hse.gov.uk/pubns/books/hsg47.htm Notes to editors: The Health and Safety Executive (HSE) is Britain’s national regulator for workplace health and safety. It aims to reduce work-related death, injury and ill health. It does so through research, information and advice, promoting training; new or revised regulations and codes of practice, and working with local authority partners by inspection, investigation and enforcement. hse.gov.uk More about the legislation referred to in this case can be found at: www.legislation.gov.uk/  and guidance at HSE news releases are available at http://press.hse.gov.uk   Journalists should approach HSE press office with any queries on regional press releases. Source link

Installers must be registered for all areas of gas work undertaken, says APHC Published:  20 June, 2016 Following the sentencing of a Chelmsford gas engineer for conducting dangerous gas work in rented homes, APHC is urging installers to ensure they are competent and Gas Safe Registered for all work they undertake. Although James Wilkinson was Gas Safe Registered for some types of gas appliances, he did not hold the required qualifications and was not competent to carry out work on gas warm air units, an HSE investigation has revealed. After doing so at five rented homes in Chelmsford, he left one gas installation in a hazardous condition on more than one occasion, which the building’s tenants were later alerted to by their carbon monoxide alarm. John Thompson, chief executive at APHC, said: “This case, which all too easily could have resulted in tragedy, highlights the importance of installers being Gas Safe Registered for all areas of gas work they undertake. We must also do more to protect homeowners by raising awareness of the importance of qualifications in specific areas of gas competence, in order to avoid similar occurrences.” Source link

©AFP The head of Kremlin-backed oil major Rosneft said on Tuesday that low prices will not last, as the price of Brent crude climbed to a fresh high for the year. Igor Sechin, a close ally of Russian president Vladimir Putin and the head of Rosneft, told the FT Commodities Global Summit in Lausanne that a price of at least $50 a barrel was needed to avert future supply shortages. More On this topic IN Commodities “The oil price is growing. I think everyone is expecting the successful outcome of our work,” Mr Sechin said. “We will need higher price levels than $45 or even $50 a barrel.” Russia is set to meet next week in Doha with Opec kingpin Saudi Arabia and other big oil producers to discuss an output “freeze” — the first significant concerted action to reverse a near two-year old price collapse. Mr Sechin did not directly address the meeting in Doha but said there were signs already that the market is tightening as US output declines. “US tight oil is decreasing despite preferential tax treatment,” Mr Sechin said. “Shale oil will struggle to spread as they don’t have such favourable conditions as the Americans have.” Ahead of the Doha meeting, crude oil has risen, with momentum accelerating on Tuesday as Brent crude jumped 1.5 per cent and set a new high of $43.58 a barrel for 2016. The benchmark has risen from a low of $37.27 a week ago on hopes of a production freeze deal being agreed, but remains well shy of the $115 a barrel peak in mid-June 2014. Also weighing in on the need for a production freeze was the head of Iraq’s state oil selling company at the FT conference. Falah Alamri, director-general of the oil marketing company of Iraq, said: “They should do this deal as this is the only way to support the oil price.” He added: “Everybody needs it and Iraq supports this deal.” The meeting in Qatar will bring together countries from de facto Opec leader Saudi Arabia to Russia and Venezuela to try to freeze output in a bid to hasten the end of an oil glut. “Demand is increasing and supply is decreasing as American shale oil especially is falling. The timing is right. A deal would now be effective,” said Mr Alamri, who is part of the Iraqi delegation going to Doha. His comments come even as Goldman Sachs, an influential bank in the commodities market, and other market analysts warn the meeting could fail to tighten an oversupplied market. A sticking point among producer nations has been Iran’s participation in any deal as well as the level at which production should be frozen. “The details are still up for debate,” Mr Alamri said. He said Iran has the “right” to increase production to pre-sanctions levels. You need JavaScript active on your browser in order to see this video. Iraq is pushing for a freeze at January levels. Data show the country, which has been the main source of output growth over the past two years, pumped 4.5m barrels a day — a historically high rate. Saudi Arabia’s deputy crown prince in recent weeks has cast doubt on the kingdom’s involvement saying it would only take part if its regional rival Iran also complied. Tehran has repeatedly said it will not restrain its production as it recovers from years of sanctions against its oil industry. However, a senior Opec delegate said last month that the compliance of Saudi Arabia, the cartel’s largest producer, was not contingent on Iran. Copyright The Financial Times Limited 2016. You may share using our article tools. Please don’t cut articles from FT.com and redistribute by email or post to the web. Source link

In an eMoov poll of the best universities where UCAS entry level and property price are concerned, Leeds University achieved the best balance for those considering an investment for their child or a uni-let investment. The average house price across the top 100 universities comes in at £319,963 with the University of Leeds the top ranking university in the UK. With an average entry requirement of 436.5 UCAS points and an average price paid of just £95,310, the University of Leeds offers a property price per a UCAS point of just £218. The University of Sunderland places second in the table. Although the average UCAS entry tariff is just 290.5 points, the 8th lowest in the top 100, the average price paid around the campus is just £65,201. This equates to a price point of just £224 for every entry point required. In contrast, the Imperial College London comes in at 100th due to the inflated price of property surrounding its Kensington campus. Although the prestigious institution requires students to achieve 566.9 UCAS points on average, the third highest in the top 100, the average price paid for property around the campus is a staggering £2.5m resulting in a property price per a UCAS point of £4,431. The other universities making the top 10 where affordability is concerned are the University of Bradford (£269), the University of Leicester (£301), the University of Hull (£305), the University of Manchester (£308), the University of Dundee (£313), the University of Strathclyde (£315), Aston University (£320) and Newcastle university (£349). Founder and CEO of eMoov.co.uk, Russell Quirk, commented: “University is often the first life step for those leaving home to study and the cost implicated in doing so are high, with many not paying off their student debt until years after graduating.   “Investing in a property for your child can be one way of reducing the cost and can act as an additional source of income for years to come. When looking for somewhere to stay at university, as with a job, properties close to the campus are always going to be a more attractive proposition and so buying in and around the university can help ensure interest in a property from the get go. “This research highlights where across the nation offers the most attractive proposition for a uni-let in terms of close proximity to the university, an affordable property price, as well as a good level of education where the university itself is concerned.” Source link

Working together with Saville Napit has recently conducted training with Savills Lettings team in its latest efforts to educate industry stakeholders on electrical safety.   As one of the UK’s leading accredited membership scheme operators, Napit is committed to improving electrical safety; with one of its primary focuses being on improving standards in the private rented sector. Charlotte Howard, lettings director at Savills commented on the Electrical Safety Awareness Training Course: “At Savills we are dedicated to providing our staff with Continued Professional Development opportunities to keep them up to date with the latest information which affects our industry. The electrical safety training we received from Napit was invaluable in updating our team on the rules and regulations around electrical safety in the private rented sector. At Savills we advise all Landlords that we require an Electrical Installation Condition Report (EICR) to be completed every five years for privately rented properties as this is the only way a landlord can protect their tenants and themselves and ensure their electrical installation is safe. The training provided a very useful insight into what to look out for on the reports we receive as well as providing some training to assist with visual electrical checks and hands on practice in completing a checklist with some interesting images.” Moving forward, Napit is dedicated to providing further training to letting agents as a gateway to improving electrical standards in the private rented sector which is important following a report published in 2014 suggested that 16% of private rented sector tenants in England have experienced problems with electrical hazards. With Napit’s expertise, letting agents will gain up-to-date knowledge of the rules and regulations surrounding electrical safety checks in the private rented sector, advice about to what to look out for when electrical reports are received and guidance on conducting basic visual and operational checks of an electrical installation. Mike Andrews, the chief executive of Napit commented: ‘We are delighted to have had the opportunity to work alongside Savills. Through working together and sharing knowledge, we at Napit are committed to raising awareness about current issues in the industry. Letting Agents are a key gateway to improving electrical safety standards, particularly within the private rented sector. We at Napit want to embrace this and continue to be a driving force for positive change in the years to come’. If you are a letting agent and would be interested in finding out more about the training that Napit provides, please contact Napit’s head of external affairs, Charlotte Lee, either by telephone on 0345 543 0330 or email charlotte.lee@napit.org.uk. Source link

Balfour Beatty’s joint venture in Hong Kong, Gammon Construction, has been awarded a £364m contract to develop a superstructure. Source link