Tender price index reveals price of new work fell 2%, with BCIS predicting further 8% fallse 7.7% and wages 4.8%
Rising competition for work has lead to a fall in tender prices, data published today has revealed.
The latest tender price index, complied by the Building Cost Information Service (BCIS) of the RICS, showed new orders for construction work fell by 8% between the third and fourth quarter of 2008, and 28% from the previous year. In line with this, the price of new construction work fell by 2% in the fourth quarter of 2008, compared with the previous quarter. The BCIS has predicted a further 8% fall over the course of the year.
Meanwhile, costs are going against the falling inflation trend, with an annual rise of 7.7% for materials and 4.8% for wage rates.
27 April, 2009
By Sophie Griffiths
Showing posts with label building magazine. Show all posts
Showing posts with label building magazine. Show all posts
Friday, 1 May 2009
Wednesday, 15 April 2009
Mortgage approvals up 4%
Forecasts remain unchanged as February figures show no increase in total loan value despite increase in approvals
The number of mortgages approved by lenders in February was 4% higher than the previous month at 24,300, according to the Council of Mortgage Lenders.
However the total value of all the loans approved - £3.1bn - was exactly the same as in January, and the number of loans approved was still only at just over half the level of February the previous year.
The CML said that despite the small rise, activity level remained very weak, with the 24,300 figure less than one third the historical average of 76,000 between 2002 and 2007.
February saw 9,400 loans for first-time buyers, an increase of 7% on January but a 46% fall since February 2008.
The CML said that for those able to get home loans, housing was now more affordable than at any time since 2004, with mortgage interest payments now consuming an average of 15.4% of a first-time buyer's income. This is down from a peak of 20.1% in February 2008.
Michael Coogan, CML director general, said that despite the growth, he was not convinced that underlying trends had shifted sufficiently to change the CML's forecasts for mortgage market activity in 2009, despite positive signs for later in the year. “We need further market measures to be introduced by the government to encourage a mortgage market where all types of lenders - banks, building societies and specialist lenders, and large and small businesses - are encouraged, and enabled, to commit more funds to the mortgage market."
14 April, 2009
By Joey Gardiner
http://www.building.co.uk
The number of mortgages approved by lenders in February was 4% higher than the previous month at 24,300, according to the Council of Mortgage Lenders.
However the total value of all the loans approved - £3.1bn - was exactly the same as in January, and the number of loans approved was still only at just over half the level of February the previous year.
The CML said that despite the small rise, activity level remained very weak, with the 24,300 figure less than one third the historical average of 76,000 between 2002 and 2007.
February saw 9,400 loans for first-time buyers, an increase of 7% on January but a 46% fall since February 2008.
The CML said that for those able to get home loans, housing was now more affordable than at any time since 2004, with mortgage interest payments now consuming an average of 15.4% of a first-time buyer's income. This is down from a peak of 20.1% in February 2008.
Michael Coogan, CML director general, said that despite the growth, he was not convinced that underlying trends had shifted sufficiently to change the CML's forecasts for mortgage market activity in 2009, despite positive signs for later in the year. “We need further market measures to be introduced by the government to encourage a mortgage market where all types of lenders - banks, building societies and specialist lenders, and large and small businesses - are encouraged, and enabled, to commit more funds to the mortgage market."
14 April, 2009
By Joey Gardiner
http://www.building.co.uk
Wednesday, 18 March 2009
Pidgley: Housing market is 'very close to bottom'
Berkeley boss says worst of housing crisis has passed as he braces for 'steady recovery' in 2009
Tony Pidgley, the Berkeley Group chief executive, has said the housing market is “very close” to the bottom.
Pidgley, who gained a guru-like notoriety after correctly predicting the recession of the late eighties, said 2009 could be a year of “steady recovery”.
He said: “I haven’t called the bottom of the market, but we are getting very close. I would say the worst is behind us.”
“It wouldn’t take much to see a pick-up and most of my housebuilding colleagues have seen a fair spike in activity so far this year.”
Asked whether he has begun spending any of the £50m Berkeley had raised in a share placement last month, he said: “A number of deals are being done where people are selling off assets, but I obviously cant talk about them at the moment.”
Source:16 March, 2009
By Tom Bill, Building Magazine, http://www.building.co.uk/
Tony Pidgley, the Berkeley Group chief executive, has said the housing market is “very close” to the bottom.
Pidgley, who gained a guru-like notoriety after correctly predicting the recession of the late eighties, said 2009 could be a year of “steady recovery”.
He said: “I haven’t called the bottom of the market, but we are getting very close. I would say the worst is behind us.”
“It wouldn’t take much to see a pick-up and most of my housebuilding colleagues have seen a fair spike in activity so far this year.”
Asked whether he has begun spending any of the £50m Berkeley had raised in a share placement last month, he said: “A number of deals are being done where people are selling off assets, but I obviously cant talk about them at the moment.”
Source:16 March, 2009
By Tom Bill, Building Magazine, http://www.building.co.uk/
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