Tag Archives: economy
UK house builder vows to create bird friendly home developments
A unique partnership between a home builder and the Royal Society for the Protection of Birds aims to see more wildlife friendly housing developments being built in the UK. Barratt Homes has signed an agreement, believed to be the first of its kind in the country, with the RSPB to boost natural habitats at its forthcoming homes developments in Nottinghamshire using updated landscaping and gardening techniques. As the country's urban wildlife struggles, with 60% of bees, birds, bugs and mammals facing decline, it is hoped that this agreement between the major home builder and the bird protection charity will help boost biodiversity. ‘With hundreds of thousands of homes needed across the country in the next few years, now is the time for conservationists and home builders to pull together to ensure the wildlife is boosted rather than ousted in the process,’ said Mike Clarke, chief executive of the RSPB. ‘We are confident that many positive steps can be taken to build wildlife into new housing developments, giving nature and people a home and increasing quality of life, and all relatively simply and cheaply,’ he added. The partnership will also see Barratt Homes working with the RSPB to raise employee awareness of wildlife friendly best practice across its sites in the region and throughout its supply chain nationally. ‘Our partnership with the RSPB will demonstrate how we can protect and enhance the biodiversity of the local area, benefitting the economy, creating employment and improving health and wellbeing for our customers and the communities we create,’ said John Dillon, managing director of Barratt Homes North Midlands. He pointed out that Barratt Homes prides itself on creating exceptional homes in the finest locations and recently achieved the maximum five star house builder rating in a customer satisfaction survey conducted by the Home Builders Federation (HBF). Continue reading
UK spending on home maintenance at highest since 2008
Household spending on DIY in the UK reached £5.5 billion in 2014, a rise of 10% to reach the highest levels since 2008, new research shows. Meanwhile, total spending on home maintenance, that is DIY and tradesmen's services, increased by 8% to £6.9 billion in 2014, according to the study from Lloyds Bank. The £5.5 billion spent on DIY in 2014 was equivalent to around £200 per household. Whilst this was the highest annual total for six years, it was still 19% below the peak of £6.8 billion and 9% lower than a decade ago when it was £6.1 billion. Spending on tools and equipment for home improvements, ranging from plumbing tools to lawnmowers, increased by 9% from £4 billion in 2013 to £4.4 billion in 2014. Real spending on DIY materials rose by 10% from £1 billion to £1.1 billion. However, there is little change in spending on tradesmen Expenditure on tradesmen's services, at £1.4 billion, increased very slightly by 1% between 2013 and 2014. This means that for every £1 spent on tradesmen some £3.92 is spent on DIY tools and materials, showing how important DIY is to UK households. Total spending on home maintenance increased by 8% to £6.9 billion in 2014 from £6.4 billion in 2013. This was the third successive annual increase, taking overall spending on home maintenance to its highest level since 2008 when it was £7.2 billion. This decline has been entirely due to a fall in expenditure on materials, which declined by 35% over the decade. In contrast, spending on tradesmen’s services rose by 20% whilst spending on tools in 2014 was at the same level as in 2004. The reports says that the past 10 years have demonstrated how spending on home maintenance has a strong link to the performance of the housing market. Spending reduced by around 36% between the height of the housing market in 2007 when it was £8.3 billion, and the bottom of the market in 2011 when it was £6.1 billion. Then, as the housing market picked up between 2011 and 2014, spending on DIY increased by 13% again to bring home maintenance spending closer to 2004 levels. ‘The latest figures provide further evidence that people are continuing to increase their spending on DIY and home improvements as the economy and housing market pick up, with DIY spending increasing by 10% in the last year,’ said Andy Hulme, Lloyds Bank mortgages director. ‘This followed a sharp fall in spending between 2007 and 2011, which reflected the worst of the economic and housing downturns during this period,’ he added. Continue reading
US commercial real estate recovery lags behind residential, say agents
The US commercial real estate market still faces its share of challenges but property agents specialising in the sector are confident that marked improvement seen over the last year will continue. At a commercial economic issues and trends forum National Association of Realtors chief economist Lawrence Yun led a panel discussion about the forces shaping commercial real estate markets. The panellists agreed that the market has improved and expressed confidence that continued recovery in the economy will drive commercial real estate growth. ‘Commercial real estate usually recovers two years behind the economy. However, NAR members who practice commercial real estate are seeing a three to four year wait. It has been a long and slow recovery, but it is happening,’ said Yun. The forum heard that there are still headwinds facing the commercial sector. Subpar Gross Domestic Product growth, stagnating wage growth and low employment rates are all affecting demand for commercial properties. Yun explained that improving those underlying fundamentals is instrumental in maintaining a strong commercial market and another major hurdle facing the recovery is the lack of financing available for small investors. While large companies can access financing from Wall Street or international buyers, most financing for smaller investors still comes from regional or local banks and credit unions. Many of those small banks are hesitant or reluctant to give out commercial loans. ‘New financial regulations for all banks, big and small, are resulting in smaller banks bearing proportionally higher compliance costs. The little guys are taking the brunt of this. Maybe there should be waivers for smaller banks so they can give out the loans businesses need and help with community development,’ Yun added. According to Sam Chandan, founder and chief economist of Chandan Economics and associate faculty member at The Wharton School of the University of Pennsylvania, when it comes to multifamily homes Millennials love to rent. They prefer the flexibility and proximity to amenities that comes with renting rather than owning. However, that fails to take into account that while Millennials will always be Millennials, Millennials will not always be in their twenties. You could ask a 22 year old at any point in history if they want to own a house in the suburbs, move away from urban centres, or own a minivan and they will say no. But that answer has changed in the past and it will change again, and the multifamily sector needs to develop a narrative that takes that into account,’ he explained. The same problem is affecting other commercial markets, such as retail. Online commerce has changed the way commercial retail positions itself and attracts buyers. ‘While it’s true that you will never be able to get a haircut online, the same cannot be said for buying books or groceries. We cannot assume that because people always shopped at grocery stores that they will not learn and adopt another way,’ said Chandan. ‘The commercial market needs to develop a narrative that evaluates how… Continue reading
