News
Shortage of bricks and bricklayers in UK could hamper new home building
The increasing shortages of bricks and bricklayers in the UK could threaten future house building plans, according to the Federation of Master Builders (FMB). How to solve the current housing crisis is one of the hot topics in the run up to the general election with all parties pledging to build new homes. But the latest FMB state of the trade survey reveals shortages. Half of all small construction businesses, that’s one in two firms, are finding it difficult to recruit bricklayers and 62% of firms are waiting for up to two months for new brick orders while almost one quarter are waiting for up to four months. An additional 16% are waiting for six to eight months. ‘The brick manufacturers are working hard to reignite their kilns which were mothballed during the recession and the ever growing lack of bricklayers is causing concern,’ said Brian Berry, FMB chief executive. He pointed out that compared to this time one year ago, more than twice the firms are reporting difficulties recruiting these tradespeople. In the short term, many SME house builders may have to rely on migrant labour. ‘To ensure we have an ample supply of skilled workers in the future, the next Government must ensure it sets the right framework in terms of apprenticeship funding and apprenticeship standards,’ said Berry. ‘Also more construction firms, large and small, need to willingly engage with training. After all, there’s strong evidence to suggest that training apprentices is good for business,’ he added. The survey also shows that the private new housing market saw its net balance increase by 5% to +13. More businesses reported higher workloads while those indicating no change in workloads decreased to 49% from 62% in the fourth quarter of 2014. The net balance for total enquiries remained in positive territory for the eighth consecutive quarter as it jumped by 27% to +29. Fewer firms stated lower levels of enquiries, compared with the previous quarter, while more respondents reported a higher level of enquiries. The net balance for total expected workloads increased by 25% to +30. The percentage of businesses with negative expectations went down, to 15% from 24%, while those anticipating higher workloads saw a rise, from 29% to 45%. Around 40% of firms predict no change in workloads, down from 46% in the previous quarter. The residential sector’s net balance moved back into positive territory as it rose by 22% to +19. Some 32% are predicting higher workloads over the next three months, up from 18%, while fewer firms are anticipating lower workloads. The private new housing market’s net balance jumped by 24% to +30. The proportion of firms with positive expectations for workloads went up from 22% to 41%. In contrast, those anticipating lower workloads declined, to 11% from 17% in the previous quarter. Continue reading
UK dream home is in the South West and less than 10 years old
The UK’s dream home would be a four bedroom detached property by the sea in South West England that is less than 10 years old, according to new research. Indeed some 31% of those surveyed would like a modern home and a home in the countryside is a popular choice, which 39% said they’d like and just 6% said their perfect place would be in a city. The South West was the most desired part of the country to reside where 26% would choose to live, according to the research from AA Home Membership. However, the research also revealed that if money were no object, many people would choose to stay in their local area. For example, 69% of Scots say their dream home would be in Scotland and 71% of Welsh respondents would stay in Wales. But it wasn’t a trend that extended to the whole of the country. Some 35% of those living in the West Midlands would like to live in the South West while 29% would choose to stay put. Similarly, 20% of respondents living in the East Midlands would continue living there while 27% would also like to move to the South West. ‘This research shows that the British public largely agree about what they want in a dream home except for the location,’ said Helen Brooker, head of AA Home Membership. ‘It’s interesting that, if given the chance to live anywhere, many people would choose to live in the area where they’re from. But other than that, the South West is the most popular location in the UK. If everyone went there maybe it would become so crowded it would lose its appeal,’ she pointed out. The research shows that while younger people aspire to own substantial properties, older respondents have more modest ambitions. Home owners aged over 65 are the age group most likely to want a two or three bedroom home with 52% saying so. Those who live in the North West are most likely to say that their dream home would not be in the UK at 19% compared to 13% overall. Respondents also had strong feelings about the age of their dream property. Some 73% of respondents want a house that’s less than 100 years old and the likelihood of wanting a new property increases with age. Character properties that are more than 100 years old are not as popular as we might expect as only 18% would like to live in such a home. Adding to the appeal of a home in the South West is the hit BBC television series Poldark which had resulted in enquiries about homes in locations in Cornwall where it was filmed soaring. Estate agents report a rise in enquiries in villages, such as Charlestown, Gunwalloe and Porthgwara, according to property site Rightmove. Brian Deacon, sales and marketing director for Linden Homes, which have a development near Charlestown said reservations and visitor levels at the housing scheme have certainly increased… Continue reading
UK landlords expect rent rises to slow by next year
UK landlords expect annual rent growth to slow to 1.7% by next year, down from 3.7% currently, according to the latest sentiment survey. However, a quarter want to buy more rental properties this year and 60% thing it is a good time to invest in the buy to let property sector, the survey from UK lettings agent network Your Move and Reeds Rains. Overall it suggests that after a recent spurt of rent growth, landlords anticipate that rent rises will taper off over the next 12 months, seeing a sharp slowdown from the current rate of annual rent growth to a steadier trajectory. According to the latest buy to let index from Your Move and Reeds Rains, average residential rents across the UK climbed 3.7% in the year to March 2015, the fastest pace for two years, but that is set to change. Indeed, the proportion of landlords who will not raise their rents in the next 12 months has increased from 56% in September 2014 to 60% currently. Only a minority of 40% intend to increase their rental prices before March 2016. The research also shows that over the last six months some 45% of landlords have witnessed an increase in tenant demand, rising from 41% of landlords in September 2014. There has been a boost in lettings activity recently, with new tenancies agreed across England and Wales climbing 6.9% in the month to March 2015. As a result, the proportion of landlords who expect tenant demand to grow further now stands at 63%, up from 56% in January 2014. Only 3% of landlords currently anticipate demand for rental properties to fall within the next two years. However, strong demand for homes to let is a considerable factor encouraging further investment into the private rented sector. Some 60% of landlords now believe that it is a good time to invest in buy to let, a rise from 54% of property investors in September 2014. The main reason underpinning this increase in confidence is that buy to let offers better capital returns compared to other forms of investment, cited by 54% of landlords who think it is a prime time to purchase a rental property. Meanwhile 40% of property investors perceive now to be an ideal time given that current market conditions offer the opportunity to buy properties at more attractive prices, as price growth has stabilised. Some 18% of landlords have already expanded their buy to let portfolio in the last year, and a further quarter of landlords expect to purchase another rental property in the next 12 months, an uplift from 22% in September, in a sign of rising optimism in buy to let as an investment. According to Adrian Gill, director of Your Move and Reeds Rains, demand for homes to rent isn’t going to dissipate. ‘First time buyers have been thrown a lot of floating aids in the past year, most recently the reform of stamp duty… Continue reading
