Richard Diment, director general of the FMB, said: “The results from our latest survey show that the building industry in still in recession. The majority of building companies are reporting lower workloads, with one in three expecting a further decline in the next three months.”

Half of all building companies (51%) reported an ‘alarmingly abrupt’ slowdown in the amount of public sector work, compared with 31% just three months ago, revealing that cuts in local authority budgets are already hitting a hard-pressed building industry – and with further cuts expected after the election.

Richard Diment said: “Prospects for employment in the construction sector are not good, with 55% of building companies not expecting to take on any new staff over the next six months. This is bad very news for school leavers looking to get a job in the construction sector this summer. We are now in serious danger of repeating the mistakes of the last recession in the early 1990s when thousands of young people were denied the opportunity to learn a trade, with the result that the construction sector suffered a serious skills gap when it did emerge from the recession in the mid 1990s.”

With the building industry responsible for 9% of the UK’s Gross Domestic Product, Diment argues that the political parties need to explain what they will do to support British builders. “A commitment to skills and training would be a start, as would cutting the regulations that small building firms have to cope with,” he said.     

The Federation of Master Builders (FMB) is the largest trade association in the UK building industry, representing around 12,000 building companies. www.fmb.org.uk

Prices for prime central London homes rose by 20% in the 12 months to the end of March 2010, according to Knight Frank’s Prime Central London Residential Index.

That means that prices are now rising at their fastest rate since March 2008 (when the market peaked) and are now only 9% lower than two years ago when prices fell off a cliff. At 23% growth, the action is being led by the ‘lower to mid end’ of the central London market (ie, homes costing less than £2.5 million).

Liam Bailey, head of residential research at Knight Frank, said:
“The central London market has enjoyed boom-like conditions in recent months, at least in terms of prices, which rose by 20% in the 12 months to the end of March 2010.
This growth has not been evenly spread, and it has been the low to mid end of the market, especially sub-£2.5m, which has seen the strongest growth (23%).”

The more expensive price brackets have lagged (eg, 17% for the £5m+ sector), reflecting the later price recovery in this part of the market.


However, it could be that the rate of price growth is already slowing – last month’s 0.7% increase represents the slowest monthly rate of growth since April 2009. It suggests that price growth is slowing due to a higher supply but weaker demand in the market – partly caused by buyers postponing their purchases until after the election.

Liam Bailey argues that the rapid growth in London’s pricing reflects not only the stimulus given to the market from low interest rates and the weak pound (key drivers of domestic and international demand) but also to very thin supply over the last 12 months, set against ‘healthy’ interest from buyers.


A record 49 nationalities bought residential property in central London in 2009, demonstrating that the London prime residential market is still underpinned to a considerable degree by international demand. 

Stewart McIntosh

www.knightfrank.co.uk

Young London, a lettings, sales and management agency that considers itself to be on the side of the saints rather than the spivs, offers some tips to help sellers identify a reputable agent:

Play web detective: Research the agent’s website – check whether they are members of any professional associations, if they have won any awards and whether their information is easily navigable, up to date, and accurate.

Do they stand out from the crowd? With more than 80% of house hunters turning to the web for their property search, online marketing has never been more important. Does the agent use twitter or facebook to reach a wider audience and do they advertise directly online, or is your property left languishing, lost on the portals?

What are they marketing? Agents already listing properties similar to yours should have a clear idea about rental and sale values, a greater understanding of the local area, and potentially a long line of registered applicants already seeking property in comparable areas and price brackets.

Testing, testing…  A quick way of testing if an agent knows their stuff is to ask them about Home Information Packs, Home Reports (in Scotland), Energy Performance Certificates, Gas Safety Certificates and Tenants’ Deposit Protection.  A good agent should be able to talk about these confidently and explain your legal obligations when selling or letting.

Check them out… Prepare a checklist of questions; make sure the agent knows the market, ask them specifically about local amenities, the demographics of the target market and how well your property fits into it. You’ll also want to check what is the likely demand and how quickly they think they can sell or rent your property.

First impressions count: Is the agent responsive and do they follow up your enquiry with an informed answer? Their initial contact could indicate their professionalism and how they run their business.

 Seek out hidden charges: A reputable agent should be transparent and upfront about their fees from the beginning. Don’t be tempted to go for the cheapest agent you come across; make sure you are clear on their charges and investigate the full range of services their quality of service.

Lettings retention and renewals: If looking for a lettings agent, do the tenants generally stay for the duration and how many tend to renew their tenancy? In terms of renewals, remember, the agent should be negotiating on your behalf to achieve the best possible rental and aim to avoid renewals coming at a point in the year when demand is low, such as near Christmas.

How do they manage? Any letting agent with a strong property management team should have reliable contractors to fix any headaches. Are their maintenance firms members of any professional bodies? Can they tell you the cost of typical maintenance jobs and how soon they would expect to have someone on site after a reported problem?

www.younglondon.co.uk

Charged with the task of regenerating 14 miles of Clyde Coast beaches and harbours, the company is hitting new heights in publicising its initiatives in the towns of Ardrossan, Stevenston, Saltcoats, Kilwinning and Irvine.

As part of the drive to find a developer for Trinity Tower, a historic landmark in the town of Irvine, a video podcast has been produced to highlight repair work on the 50m high A-listed steeple.

The company has already carried out significant works to protect, preserve and secure the building, including the removal of a pigeon infestation, general repairs, the construction of a new roof and the comprehensive survey of the spire.


Chief executive Patrick Wiggins said: “Trinity Church is a landmark building on a prominent site that has been allowed to fall into a state of severe disrepair. Working with our partners, North Ayrshire Council and Trinity Church Trust, we have made a significant investment in getting the building ready for development, and we will be marketing it as a fantastic opportunity.”


Swallowed your vertigo pills? Then click on the link below for a pigeon’s-eye view of the work being carried out.

http://www.irvinebay.co.uk/podcasts/459_take_an_inspring_journey_up_the_trinity_church_spire

According to ‘Round Town News’ (RTN), the local English language newspaper, an average villa in the Monte Pego of the Costa Blanca will see its IBI tax increase from €136 to €539 following the review.

RTN reports: “Householders have already met to discuss what action can be taken, but fear their only course is to appeal the increase in an expensive legal battle. Before 2008, the catastro rate for Pego land was €19 per square metre. The town hall requested a review and a new value was set in the Spanish capital of €149 per square metre – an increase of almost 700 per cent.”

The cash-strapped local authority has declared the jump was too much but now that the rate has been set, residents believe it can only be overturned by the courts.

Stephen Joyce, who lives in Monte Pego, told RTN that people were advised they needed to appeal individually through the court system at a cost of around €500, adding that the chances of winning were apparently 50-50.

He also reported that 80 per cent of the residents had not received notification that they had two months in which to appeal the new charges. It is also reported that in assessing the size of the properties for IBI purposes, the authorities ‘increased’ the number of square metres owned by individual householders – which, if true, means that they are paying tax on land that does not actually exist.

With the Spanish economy in meltdown it seems likely that more town halls will seek to shore up their income by seeking to review the IBI tax. Owners in other parts of Spain could be next…

Stewart McIntosh

www.roundtownnews.co.uk

1. Keep your eyes on the market

Even if you are not thinking of moving yet, it is worth checking out property websites on a regular basis to get a feel for the trend in prices. That way, when you are ready to start looking, you’ll have a good idea whether a property is under or over valued, but do remember the majority of websites work with historical data that may not reflect recent movements in the market price.

2. Don’t think the seller holds all the cards

Markets swing between buyers and sellers, but people are always keener to sell a house than you are to buy it, so always bear that in mind.

3. Don’t fall in love…

Keep your heart out of the process. Of course, houses must feel right. But don’t let your desire for a property get in the way – you’ll end up paying too much, or agreeing to unnecessary terms. There will always be other houses.

4. Don’t quibble over minor points

When you’ve found your ideal home and made an offer, don’t haggle over every hinge and bracket. It will only exasperate the vendor – and if they’re approached by another buyer, they may ditch you for an easy ride.

5. Don’t look at the interior decor

Mentally, strip a house back to the brickwork – ignore paint colours, furniture, fixtures and fittings, carpets and curtains. It doesn’t matter what it looks like inside – more important are price, location, transport links, room sizes, garden and so on.

6. Don’t think you’ll find the perfect home

Too many people draw up wish lists and then stick to them like glue. This will almost always end in tears – no house is going to satisfy your every whim and desire. Compromise will always be required.

7. Don’t put in an offer until you’ve researched the area

Few buyers do it, but house price research will reap huge rewards when you start viewing in earnest. Why? Because you’ll be able to spot under and over-valued property.

8. Don’t pretend you’re uninterested in a property

Don’t play the ‘whatever’ card and pretend you don’t want a house when you really do. Agents will soon see through such a ploy, so tell them if you’re interested in making an offer – it’s all they want to know.

9. Don’t think of the agent as your friend

Everything you say during a viewing is likely to be relayed back to the vendor – so only tell them the bare minimum: how much you have to spend and where and what you’re after.

10. Don’t start hunting until you’ve got a mortgage offer in place.

When house hunting, or if you’re a first-time buyer, it’s essential that you have a mortgage in place to buy a property; without one, you don’t look serious.

 www.mdh.uk.com

Construction workloads fell in all sectors towards the end of last year, with 12 per cent more chartered surveyors reporting a fall in workloads for the final quarter of 2009 rather than a rise. This compares with a net balance of 6 per cent reporting falls in Q3, indicating that a recovery in the sector “is further out of reach”, with workloads in decline for the seventh consecutive quarter.

Public non-housing workloads declined for the first time since Q1 2009, indicating that there has been a slowdown in planned government capital spending projects. Many respondents cited the general election, as well as the continued lack of development finance, as the main cause of inactivity.

Private housing, private industrial and infrastructure all experienced further declines in workloads, with the net balance of chartered surveyors reporting falling rather than rising workloads declining to -17 percent, -19 percent and – 11 percent respectively.

Overall expectations for workloads, employment and profits for the next 12 months are all fairly downbeat. Workloads are projected to be slightly higher with two per cent more chartered surveyors expecting an increase, but this positive balance is modest and is lower than the third quarter reading of 9 percent.

Meanwhile, the perception is that jobs will continue to be lost, with five per cent more chartered surveyors believing this will be the case. Profit margins were squeezed as competition for the limited amount of work on offer intensified. Significantly, 29 per cent more respondents to the survey still expect profits to drop further, rather than see an increase in margins.

Simon Rubinsohn, RICS chief economist, said: “The acceleration of capital spending programmes seems to have faltered in recent months and our members’ perception is that this is due to more caution being exhibited by the government in the approach to the general election. Coupled with the fact that development finance is still in very limited supply, this sector is likely to remain locked in recession for at least the first half of this year.”

www.rics.org

To be called Construction Research and Innovation (CRI), the quarterly publication will offer a latest digest of the latest research and analysis about the built environment business.

 As successor to Construction Information Quarterly, CRI aims to select the best university and practitioner-led research and make it accessible for busy professionals. It will also carry specially-commissioned, in-depth reports designed to give readers a strategic understanding of the way the built-environment business is changing.

“We saw a gap in the market for a journal that links academia with practitioners,” said CRI editor Rod Sweet. “There is a lot of good thinking and research going on out there and we want to make it available to a broader readership. It’s a bit like the Harvard Business Review for construction.”

CIOB has some 45,000 members around the world and claims to be “the international voice of the building professional, representing an unequalled body of knowledge concerning the management of the total building process.”

www.ciob.org.uk

 To be written by six of Brodies’ planning specialists, the blog will cover a wide range of issues from infrastructure investment to environmental assessment.

 Neil Collar, head of planning at Brodies, said: “Many clients find electronic updates and communications useful and pertinent to their business needs. Our team is well attuned to using social media and PlanningBlog is a natural extension of the work we do – creating a forum for informal discussion and a sharing of insight.

“But we also want to get under the skin of planning news and planning decisions. We want to stimulate debate about how things are done – and generate ideas about how things could be done.”

Want to set up a blog, but unsure what’s involved in getting started – and then keeping it updated with fresh copy and ideas? Award-winning property writer Stewart McIntosh can help:0141 334 8475 

Stewart.mcintosh@btinternet.com

www.brodies.co.uk

So that’s why I enjoyed attending the opening of One Waterloo Street, Stockland’s 58,000 sq ft office development on the corner of Glasgow’s Hope Street and Waterloo Street. The eight-storey building replaces Shaftesbury House, a concrete dog of a building that glowered too long over one of the city centre’s key locations – just opposite Central Station.

Keppie Design, the architects, have created a striking building on a rather tight site. The design creates a glass box, framed in stone and with a dramatic narrow glass tower floating above the entrance and piercing the roofline. Inside, 7,100 sq ft floorplates, airy ceilings and high glass walls offer wide views over the city centre. I particularly liked the (slightly) vertigo-inducing vista directly up Hope Street – and so will the occupiers; “this is where I’d have my desk” was a frequent refrain from property professionals viewing the building first time on Friday.

Miller Construction delivered the project on time and on budget, despite the strictures of the site and having the prop up neighbouring buildings.

Joint agents DTZ and Ryden are optimistic that the quality of the building and its central location, combined with an acute shortage of new office development in the city centre, will guarantee rents in the high £20′s.

Welcoming his guests to the official opening, Ken Lindsay of developers Stockland said: “We’re optimistic about finding occupiers. There are one or two signs of recovery in London – and talk of rents creeping upwards again. If that’s true, then we can look forward to Scotland getting its share of the action.”

Now that the ailing Shaftesbury House has been put out of its misery, to be replaced by a pedigree building, Stockland can wag its tail at occupiers seeking top class space. Let’s hope they get their hand bitten off…

Stewart McIntosh

http://www.ryden.co.uk

http://www.dtz.com

http://www.stockland.com.au

http://www.keppiedesign.co.uk

http://www.construction.miller.co.uk