ROOF Blog

Redrow and Barratt Developments accused the banks of downgrading valuations on new properties to restrict lending. Redrow said the practice of down valuation by surveyors representing mortgage lenders was ‘widespread’ and posed a ‘major obstacle’ in the recovery of the housing market. It blamed the gap in valuation for about two-thirds of its current cancellation rate of 20 per cent. A spokesperson for Barratt said the policy was creating a ‘two-scheme mortgage sector’ and added that house builders were asking for new builds to be valued ‘appropriately’.

A quarter of Scottish council buildings are in ‘poor or bad’ condition, Audit Scotland has warned. It said many buildings were unsuitable for the services delivered for them, despite more than £130 million spent on maintenance last year. Audit Scotland estimates the cost of tackling the repairs backlog has reached £1.4 billion. It found that only half of councils have strategies for managing and maintaining property, and only a third think further ahead than the next five years about what services they will need.

The construction industry declined at its slowest rate for seven months, leading to hopes that the worst is over. The Chartered Institute of Purchasing and Supply, which compiles the report said there was a rise from 30.9 in March to 38.1 in April – its highest level since September, which some observers put down to the government’s economic stimulus package encouraging infrastructure spending being brought forward.

Meanwhile the new homes marketing agency has warned that there will be a shortfall of more than a million homes and prices will spiral again once mortgage finance becomes widely available, because demand will outstrip supply. Chair of the organisation David Pretty believes that house prices will rise to 2007 levels within five years.