Welcome to This Week in Property, your essential update on the latest UK construction and property news. This week, the residential market shows mixed signals with slower price growth and rising supply, while landlords face increasing pressures. We cover key policy delays, industry fines, and exciting advances in skills training and technology. Plus, discover fresh investment opportunities and shifts in commercial property. Stay tuned for a quick look at the challenges and innovations shaping the market today.

Residential property market insights

The residential market presents mixed signals. House price growth has slowed to 1.4% due to increased supply, the average time to sell a property has exceeded 200 days for the first time, indicating persistent challenges.

Concerning trends include over 50,000 homes sitting empty despite the housing crisis and warnings that two-thirds of landlords plan to sell in the next 12 months due to regulatory pressures and rising costs.

Policy and regulatory developments

The Renters’ Rights Bill continues to face delays and won’t pass until autumn, with industry bodies like the NRLA rallying against pet amendments and critics calling recent government changes “a shoddy way to make law”.

In financial regulation news, almost 200 estate agents have been fined by HMRC for AML breaches, highlighting continued scrutiny of the sector. Meanwhile, discussions around property taxes have intensified as revenue has increased by 750% over ten years.

Skills development and training initiatives

A notable trend this week is the expansion of training facilities across the UK. DBR has opened a new crafts skills centre to address traditional building skills shortages, while Sunderland has received a new prefabrication training centre to boost modern construction methods.

London has welcomed a new plant operator school, addressing the ongoing need for skilled machinery operators in the capital. These developments align with the recent meeting of the Construction Skills Mission Board, which is coordinating industry-wide skills initiatives.

Technology in construction

Technology continues to transform construction practices. In a significant development, robot bricklayers are now building houses in Durham showcasing automation’s growing role in addressing housing needs and labor shortages.

Investment

Interesting investment opportunities include flats generating £37,000 in annual rent in Birmingham going to auction next month and a Shakespeare-linked building heading to auction, appealing to investors looking for properties with unique historical value.

Commercial property market dynamics

The commercial property sector is seeing strategic shifts, with Travelodge acquiring Liverpool Street offices for hotel conversion, responding to changing demand patterns in central London. Meanwhile, Landsec has submitted ambitious redevelopment plans for Glasgow’s Buchanan Galleries, signaling confidence in retail redevelopment.

This week’s developments reveal a construction and property sector navigating complex challenges while embracing innovation. Skills development initiatives and technological adoption are helping address labor shortages, while major infrastructure projects continue to drive industry growth.

The residential market remains under pressure from regulatory changes and economic factors, with landlords expressing concerns about viability.

As autumn approaches, all eyes will be on the progress of the Renters’ Rights Bill and whether new mortgage rules and government reforms can effectively boost homeownership in an increasingly challenging market.

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