UK construction and property news
- High end housing | Prime central London housing prices increased by nearly 7% since the start of the year as overseas buyers have returned to the capital. Knight Frank reported that “the prime London property market is resuming an overdue recovery that was interrupted by the pandemic.”
- Construction PMI increased to 54.6 in October, from 52.6 in September. Whilst lower than the 66.3 recorded in June, it shows that the industry is recovering from supply issues and a return of confidence.
- Shortages | Roofing contractors are the lastest group to sound the alarm over labour and supply shortages. The National Federation of Roofing Contractors (NFRC) found that 77% of contractors had difficulties recruiting in the third quarter of 2021 (up from 56% six months ago) and 92% had costs increase, but only 70% have increased their tender prices.
- Red flags | Real estate and construction companies are among the most at risk from insolvency according to the latest Red Flag report from Begbies Traynor.
- London offices | A report by Savills suggests that London offices are underpriced when compared with other major European cities, and that leasing activity in the capital has increased.
- Energy standards costs | The cost of increasing the energy standard of UK homes to the government’s targets will cost £330bn. The timescale for landlords is shorter than for homeowners, with leased homes required to reach level C or better by 2025 and 2028 for all tenancies.