Tag Archives: employment
UK architects report that private housing sector workload is falling
Overall workload for architects in the UK is rising but the private housing sector workload has fallen, according to the latest data from the Royal Institute of British Architecture (RIBA). Practices have reported that their overall workload is growing at an annual rate of 8% and that current staffing levels are 6% higher than they were a year ago. All regions in the UK returned positive balance figures, with practices in the North of England the most optimistic with a balance figure of +48 and practices of all sizes remain upbeat about work prospects. But, after a record high forecast in June, July 2015 saw a significant note of caution with the RIBA Future Trends Workload Index falling sharply to +22, down from +44. The private housing sector workload forecast fell to +23 in July 2015 from +39 in June while the commercial sector workload forecast saw a moderate fall down to +13 in July 2015 from +19 in June. The data also shows that the public sector workload forecast dipped slightly to -1 in July from +2 in June with practices expecting little medium term change in public sector expenditure levels within the built environment. The RIBA Future Trends Staffing Index also declined +12 in July from +20 in June, however, the employment market for salaried architects remains very positive and 98% of respondents expected their staffing levels either to increase or to stay the same over the next few months. Small and medium sized practices are still confident about increasing their staffing levels with balance figures of +6 and +42 respectively. However, large practices are more likely to be actively appointing new staff, with a balance figure of +67. ‘Despite the fall in our headline index, it is important to state that our forecast remains firmly in positive territory. This drop seems largely to have been driven by some loss of confidence by our practices in the medium term outlook for work in the private housing sector, especially in London and the South of England,’ said RIBA executive director members Adrian Dobson. ‘Private housing has been the main driver of increases in architects’ workloads in the last couple of years, so this is a development that we will be monitoring closely in the next few months. It is too early to say if this is a definitive trend and the crucial autumn period will give a better indication of the prevailing sentiment,’ he explained. ‘Our participating practices continue to suggest that the majority of firms are seeing solid growth in workloads, though there is significant pressure on fee levels and profit margins on projects typically remain tight, constraining salary levels,’ he added. He pointed out that future Bank of England interest rate rises may yet dampen activity in the key private housing and commercial sectors. But with the current low inflation environment looking set to continue this seems to remain a relatively distant prospect at present. The overall economic environment for architects… Continue reading
Scottish rents 1.6% higher than a year ago, latest data shows
Rents in Scotland have increased 1.6% compared to last April, marking a step up in annual rent growth after a period of cooler price rises, according to the latest index. This is the fastest year on year increase in rents for five months, according to the Scotland buy to let index from Your Move, one of Scotland’s largest lettings agent networks. Coming back from a winter dip, the pace of rent growth has increased solidly from a 1.3% annual rise in March 2015, and 1.1% in February. As of April 2015, the average residential rent across Scotland stands at a record £539 per month, matching the peak set in November 2014. While rent growth is quickening on an annual basis, in the month to April, average Scottish rents rose just 0.1%, the data also shows. ‘Scottish rents have peaked at a new apex, as lethargic supply of rental homes fails to match up to towering demand for homes to let. After rental prices plateaued over the winter months, we’re seeing annual rent rises start to ascend again,’ said Brian Moran, area lettings director at Your Move. ‘Affordability in the private rented sector now rests on new housing becoming available to let, and more choice for tenants, to keep rents competitive and rent rises in check. Solid rent rises offer clear encouragement for those contemplating buy to let investment, but fears of prohibitive rent controls and additional tenancy legislation in Scotland may be off putting, which could choke off new supply of rented homes, and drive up prices for tenants,’ he explained. Compared to last year, rents are now higher in three of five regions of Scotland. Rents in Glasgow and Clyde have experienced the greatest year on year increase, with typical rents up 5% since April 2014. The East saw the second biggest annual rise in rental prices at 1.7%, setting a new record for the area in April 2015, with the average monthly rent now £531. In the South of Scotland, rents have climbed a more modest 0.7% in the past 12 months. In two regions of Scotland, rents are now cheaper than they were a year previously. Edinburgh and the Lothians has witnessed the biggest fall in rent prices year on year, down 0.8% in the 12 months to April 2015. In the Highlands and Islands, rents are now 0.6% lower than in April 2014. On a monthly basis, rents have risen across three of five regions in Scotland. In Glasgow and Clyde, the average rent has climbed 0.8% in the past month, to £563. In both the East and the Highlands and Islands, rents have risen 0.3% since March. Rents in the South of Scotland have remained static month on month, staying at £498, the lowest average rent price across the whole of Scotland while Edinburgh and the Lothians is only region in Scotland to witness… Continue reading
Gap between residential rents and income widens in the US
The gap between rental costs and household income is widening to unsustainable levels in many parts of the United States and the situation could worsen unless new home construction meaningfully rises, it is claimed. According to new research by the National Association of Realtors which reviewed data on income growth, housing costs and changes in the share of renter and owner occupied households over the past five years, renters are being squeezed in many metro areas. This is due to the disproportionate growth in rental costs to incomes and New York, Seattle and San Jose, California, are among the cities where combined rent growth is far exceeding wages. Lawrence Yun, NAR chief economist, said that the disparity between rent and income growth has widened to unhealthy levels and is making it harder for renters to become home owners. ‘In the past five years, a typical rent rose 15% while the income of renters grew by only 11%. The gap has worsened in many areas as rents continue to climb and the accelerated pace of hiring has yet to give workers a meaningful bump in pay,’ he explained. He also pointed out that the share of renter households has been increasing and home ownership is falling. Those financially able to buy a home in recent years were insulated from rising housing costs since most take out 30 year fixed rate mortgages with established monthly payments. Furthermore, a typical home owners’ net worth climbs because of upticks in home values and declining mortgage balances. The result has been an unequal distribution of wealth as renters continue to feel the pinch of increasing housing costs every year. ‘Meanwhile, current renters seeking relief and looking to buy are facing the same dilemma: home prices3 are rising much faster than their incomes. With rents taking up a larger chunk of household incomes, it’s difficult for first time buyers, especially in high cost areas, to save for an adequate down payment,’ added Yun. NAR’s research analysed changes in the share of renters and home owners, mortgage payments, median home prices, median household income for renters and the rental costs in 70 metro areas. The top markets where renters have seen the highest increase in rents since 2009 are New York with growth of 50.7%, Seattle up 32.38%, San Jose up 25.6%, Denver up 24.14% and St. Louis up 22.26%. Looking ahead, Yun says a way to relieve housing costs is to increase the supply of new home construction, particularly to entry level buyers. Builders have been hesitant since the recession to add supply because of rising construction costs, limited access to credit from local lenders and concerns about the re-emergence of younger buyers. Yun estimates housing starts need to rise to 1.5 million, which is the historical average, yet housing starts have averaged about 766,000 per year over the past seven years. ‘Many of the metro areas that have experienced the highest rent increases are popular to millennials because… Continue reading
