Construction Insolvencies Leap By 55% In Three Months

The number of construction firms falling into administration leapt by over half during the third quarter of the year. According to KPMG restricted access to finance, rising input prices and project delays caused by political uncertainty have started to take their toll. Administrations in the sector jumped up from 49 in the second quarter to 76 in the third quarter of this year which saw Pochin’s as one of the high profile victims. Regional contractors like the North West’s Marcus Worthington and South West’s Dribuild also went to the wall in the worsening economic climate. Read more on the Construction Enquirer website.

http://www.constructionenquirer.com/2019/10/23/construction-insolvencies-leap-by-55-in-three-months/

House Prices Could Nosedive After No-Deal Brexit

UK house prices could crash by as much as a fifth if Boris Johnson pursues a no-deal Brexit, and the biggest falls would be in London and Northern Ireland. Reflecting the potentially vulnerable state of the property market as Brexit looms, KPMG said house prices would fall by between 5.4% and 7.5% across different regions next year if a new agreement with Brussels was not in place by 31 October. The analysis of average house prices across the country showed no deal could trigger a nationwide decline of about 6% in 2020 and that and a drop of between 10 and 20% was “not out of the question” if the market reacted more strongly than expected. Read more on the Guardian website.

https://www.theguardian.com/money/2019/sep/02/house-prices-could-nosedive-after-no-deal-brexit-says-kpmg

Homebuyers Wobble In Wake Of Brexit Vote

Homebuyers spooked by the UK’s decision to leave the EU are pulling out of deals or attempting to renegotiate prices, according to property professionals, as the housing market suffers Brexit vote aftershocks. One property developer in central London, which had offered a “Brexit clause” allowing nervous buyers to pull out of deals in the event of a leave vote said it was allowing buyers to withdraw and keep their deposits. Consulting group KPMG has forecast that prices could fall by 5% outside London, and more in the capital, while commentators said a slowdown in sales which started ahead of the referendum was likely to continue. Fearful of landing in immediate negative equity, some buyers have decided to put their purchases on ice. Read more on the Guardian website.

First-Time Buyers in London 'Need To Earn At Least £77,000'

Hopeful homeowners in London have to earn a whopping £77,000 a year to be able to buy their first house, a new report has revealed. Getting on the property ladder in London is more difficult than ever. First timers now need to earn almost double the £41,000 minimal national average income to buy a home, according to the KPMG report. This means that Londoners have to earn almost three times the capital’s median annual wage of £28,000 in order to be in a position to put down a deposit of 10 per cent and a loan at 4.5 times salary. Read more on the KPMG website.

Think Tank Calls for Investment Bank to Tackle Housing Crisis

A think tank has called for a central and local government-run investment bank to help fund the cost of doubling house building. The Smith Institute published a report today calling for a bank jointly owned by central and local government to support urban extensions. The think tank researched state investment in banks across western Europe, and concluded that a similar system could help combat the shortage of housing in the UK.  The report follows a similar call made in a joint report by accountancy firm KPMG and housing charity Shelter last month. Download a copy of the report from the Smith Institute website.

House Prices Could Quadruple If We Don’t Act, Warn Shelter

England faces a deepening housing crisis if the next government doesn’t commit to a radical programme of house building, a KPMG and Shelter report has warned. The report outlines how the 2015 government could turn the tide on the nation’s housing shortage within a single parliament. New research estimates that average house prices would be over £900,000 by 2034 if current trends continue – a quadrupling of current prices. The research also shows more and more people priced out of a home of their own as housing costs soar – a trend that could see more than half of 20 to 34 year olds living with their parents by 2040. The report sets out essential reforms to increase the supply of affordable housing and stabilise England’s rollercoaster housing market. It calls on politicians to commit to a range of key measures. Download a copy of the report from the Shelter website.