Category: Gov Press Releases

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Press release: Prime Minister to visit Northern Ireland

The Prime Minister will reaffirm her commitment to a Brexit that avoids a hard border and protects the Belfast Agreement, in a visit to Northern Ireland this week (Thursday 19 – Friday 20 July).

In a visit to a border area on Thursday with the Secretary of State for Northern Ireland, the Prime Minister will meet with businesses to listen to their views on what working, living and trading across the border means to them.

The PM will deliver a speech on Friday in Belfast, which will emphasise her personal commitment to the strength of the UK’s four nations and the solutions set out in the White Paper that address Northern Ireland’s unique circumstances.

On restoring devolved government to Northern Ireland, the PM is expected to meet with political parties on working together towards this goal for the benefit of all communities.

She will also speak to young people to hear their views on Northern Ireland’s future, for them and generations to come.

Prime Minister Theresa May said:

I look forward to hearing views from businesses on the border in Northern Ireland on our departure from the European Union.

I fully recognise how their livelihoods, families and friends rely on the ability to move freely across the border to trade, live and work on a daily basis.

That’s why we have ruled out any kind of hard border. Daily journeys will continue to be seamless and there will be no checks or infrastructure at the border to get in the way of this.

I’ve also been clear we will not accept the imposition of any border down the Irish Sea and we will preserve the integrity of the UK’s internal market and Northern Ireland’s place within it.

From the start of the negotiations, the UK Government has put Northern Ireland’s unique circumstances at the heart of our negotiations. And nothing will undermine our commitment to protecting the Belfast Agreement.

I also look forward to meeting political parties on working together to restore stable and effective devolved Government for the benefit of everyone in Northern Ireland.

Link: Press release: Prime Minister to visit Northern Ireland
Source: Gov Press Releases

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Press release: James Brokenshire provides stronger powers for councils to tackle empty homes

Introduced in March, this legislation originally contained provision for councils to double the rate of tax on properties that had been empty for 2 years or more.

The government is now going further and introducing an amendment that would allow councils to triple the council tax on homes left empty for five to 10 years and quadruple it on those empty for more than a decade.

Homes which have been empty for between 2 and 5 years would still be subject to the Council Tax bill being doubled under the proposal.

Secretary of State for Communities the Rt Hon James Brokenshire MP said:

We’re determined to do everything we can to ensure our communities have the housing they need.

That’s why we’re giving councils extra flexibility to increase bills and incentivise owners to bring long-standing empty homes back into use.

By equipping councils with the right tools to get on with the job, we could potentially provide thousands more families with a place to call home.

Councils will be able to use funds from the premium to keep Council Tax levels down for hard working families.

Currently, there are just over 200,000 homes empty for 6 months or more in England, compared to 300,000 in 2010. This number has reduced dramatically since 2013 after councils were given powers to charge a 50% premium on council tax bills.

The vast majority of councils have introduced 50 per cent premiums on long-term empty homes. Where councils have applied the premium consistently every year, there has been a nine per cent fall in the number of homes being charged the premium.

To ensure the proposed new powers are not used to unfairly punish those facing difficult circumstances, the government has also announced today that it will publish revised guidance for councils on the use of premiums. This will also take into account issues relating to low-demand areas and ensure it does not hinder complex regeneration schemes.

The move is one of a range of measures introduced by the government to fix the country’s broken housing market. Through an ambitious package of long-term reform and targeted investment, government is ensuring communities have the homes they need.

Further information

The amendment was made during the Third Reading of the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill in the House of Lords today (18 July 2018).

Decisions on whether to charge a premium, and the exact rates to be charged will remain a matter for councils, taking local circumstances into account. It is anticipated that councils will be able to charge 100% premiums from April 2019, 200% premiums from April 2020 and 300% premiums from 2021.

The government is clear that the premium must not be applied where homeowners can demonstrate that their properties are genuinely on the market for sale or rent, or in cases of hardship. Councils will also need to take into account the issues of low-demand areas.

Councils have powers to refrain from charging the empty homes premium in individual cases, and there are various exemptions. No Council Tax at all can be charged on empty properties where the liable council taxpayer:

  • has gone into care or hospital, is severely mentally impaired or has gone elsewhere to provide care
  • is living elsewhere in armed forces accommodation for job-related purposes
  • has died and probate has yet to be granted

No Council Tax premium can be charged on annexes being used as part of a main property.

Councils already have powers and incentives to tackle empty homes. Through the New Homes Bonus scheme introduced in 2011, councils earn the same financial reward for bringing an empty home back into use as for building a new one.

Since 2013, councils have been able to charge a 50% premium on the council tax bills of owners of homes empty for two years or more. A total of 291 out of 326 councils applied an empty homes premium in 2017 to 2018. All but 3 are charging the premium at the maximum 50% rate.

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Link: Press release: James Brokenshire provides stronger powers for councils to tackle empty homes
Source: Gov Press Releases

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Press release: Hitting the road for the holidays? Check before you travel

Campsite bookings in the UK are reportedly up by as much as 5 per cent year on year as people take advantage of the weather.

And drivers enjoying a staycation in this country or travelling further afield as schools break up for the summer are urged to have a good look at their vehicles before setting off on journeys.

Almost half of all breakdowns are caused by simple mechanical problems that could be avoided with simple checks and nearly a quarter are caused by tyre problems.

Meanwhile, around 20 motorists break down every day because they have run out of fuel.

Highways England Head of Road Safety, Richard Leonard, said:

We want all drivers to arrive at their destinations safely this summer and I’d urge motorists to make sure they are ready for their journey by checking their vehicles beforehand.

Simple checks on tyres, fuel and oil levels help prevent breakdowns and it’s also worth making sure you’re prepared for the journey, especially in hot weather, by stocking up on water and checking travel conditions before setting off.

Iain Geddes, from the Camping and Caravanning Club, supported that message, saying:

The strategic road network presents the best way for campers to get away this summer. We recommend planning your route and considering what time you travel to avoid being part of a rush-hour bottle neck.

Don’t forget the basic checks of the tyres and vehicle fluids before you go. Also watch out for traffic advice on the matrix signs overhead to help you have a drama-free journey.

And Martin Spencer, from the Caravan and Motorhome Club, added:

Our members take numerous trips each year, especially during the summer, and England’s motorways and major A roads are vital in enabling them to get to their destination.

For anyone who is thinking about going on a caravan holiday but is intimidated by the idea of towing, they should be reassured that towing can be relaxed, easy and comfortable on our roads – you just need to get the basic set-up right and follow expert advice.

Highways England has produced five short instructional videos featuring traffic officer Siobhan Wares, explaining how to check tyre pressure, tyre tread, oil and water levels and lights to help prevent needless breakdowns and cut the unnecessary delays they cause.

The videos cover:

  • checking tyres: prior to setting off on a long/significant journey, check your tyre pressures are suitable for the load and the condition of your tyres, including the spare. Look out for cuts or wear and make sure the tyres have a minimum tread depth of 1.6mm, which is the legal limit.
  • checking engine oil: use your dipstick to check oil regularly and before any long journey, and top up if needed. Take your car back to the garage if you’re topping up more than usual.
  • checking water: to ensure you have good visibility, always keep your screen wash topped up so you can clear debris or dirt off your windscreen.
  • checking lights: if your indicators, hazard lights, headlights, fog lights, reverse lights or brake lights are not functioning properly, you are putting yourself and your family at risk. In addition, light malfunctions can be a reason for your vehicle to fail its MoT.

Motorists are also urged to:

  • check fuel: before setting out, check your fuel levels and make sure you have enough to get to your destination.

And people are urged to make sure they are prepared for their journey when the weather is hot.

Drivers should:

  • take a bottle of water before setting out to ensure you stay hydrated
  • plan in breaks and leave plenty of time for journeys
  • check the weather forecast for your destination
  • check travel conditions before setting out and, where it is safe to do so, during journeys
  • ensure you and your car are fit for the journey

For more information on how to carry out your vehicle checks, visit the Vehicle Checks website.

As more smart motorways are introduced it is becoming increasingly important that drivers familiarise themselves with driving on them. One of the most important signals – the Red X – is used to identify when a lane is closed and indicates that drivers should move into an open lane to continue their journeys. Driving in a closed lane is risky, as there could be debris in the road or an accident or breakdown up ahead. Keeping the lane clear gives the emergency services the access they need to help. For further advice, please visit our web page on Driving on a Smart Motorway.

More information can be found on our website or by calling our information line (0300 123 5000) where you can keep up to date with conditions on the roads.

General enquiries

Members of the public should contact the Highways England customer contact centre on 0300 123 5000.

Media enquiries

Journalists should contact the Highways England press office on 0844 693 1448 and use the menu to speak to the most appropriate press officer.

Link: Press release: Hitting the road for the holidays? Check before you travel
Source: Gov Press Releases

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Press release: New public consultations announced for future trade agreements

In a speech to business and civil society leaders hosted by the FSB today (18 July 2018), International Trade Secretary Dr Liam Fox is set to announce 4 public consultations ahead of post-Brexit trade negotiations.

The consultations demonstrate the UK’s intention to seek free trade agreements with the US, Australia and New Zealand, as well as the UK potentially seeking accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The consultations, which will be released to the public shortly, will cover these prospective new trade agreements signalling the UK’s immediate negotiating priorities as soon as it leaves the EU, in line with the terms of the draft Withdrawal Agreement and in light of the government’s White Paper on the future relationship between the UK and EU.

International Trade Secretary Dr Liam Fox said:

For the first time in over 40 years we will be able to determine who we trade with, and on what terms.

That doesn’t just mean new trade agreements with key partners like the USA, Australia and New Zealand, revitalising our existing trade. It also means putting the UK at the heart of the world’s fastest growing regions with agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

I want everyone to have their say, to make sure our future trade policy works for the whole of the UK. Trade affects us all and I urge anyone with an interest to take part in these consultations.

The launch of public consultations follows Dr Fox’s statement to Parliament on Monday, where he set out the governments approach to a transparent and inclusive UK trade policy which takes in the views of MPs, devolved governments, businesses, civil society groups and consumers.

If the UK were to join CPTPP, it would be the second largest economy in the group, and CPTPP’s coverage of global GDP would increase to around 17%.

The agreement reduces 95% of tariffs along with other barriers to trade among its 11 members, including Canada, Japan and Singapore.

The 11 existing members of CPTPP accounted for £82 billion of UK trade in 2016, more than the Netherlands, France or China. The economies of existing members are diverse, spanning a region which is a driving force of global economic growth. Many, including Vietnam, Malaysia and Singapore have been growing substantially over the last 5 years, growth which the IMF projects will continue in the near future.

The US is the UK’s single largest trading partner, accounting for £100 billion of UK annual exports and supporting millions of UK jobs.

UK exports to Australia and New Zealand, two of the UK’s closest allies, are growing at 14.8% and 16.8% respectively, a faster pace than our global average and far outstripping export growth to the EU.

Hosting the speech, FSB National Chairman, Mike Cherry said:

Small businesses will welcome the opportunity to input into the consultations announced today. Getting the institutional apparatus right is essential and strong small business representation on the newly announced Strategic Trade Advisory Group is a hugely important step in the right direction.

As the largest business group in the UK, FSB knows that the detail of trading arrangements matters hugely to the UK’s 5.7 million small businesses, and that it’s crucial small businesses are in the room when these conversations take place. Helping make sure more small businesses can export more is vital to the future growth and productivity of the UK economy.

Link: Press release: New public consultations announced for future trade agreements
Source: Gov Press Releases

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Press release: Geoffrey Cox QC MP sworn in as Attorney General for England and Wales

Geoffrey Cox QC MP was sworn-in on Thursday 18 January in Court 4 at the Royal Courts of Justice as Attorney General for England and Wales.

The Lord Chancellor, David Gauke MP, the Lord Chief Justice, The Lord Burnett of Maldon, and the Chair of the Bar Council, Andrew Walker QC, spoke at the ceremony to welcome Geoffrey Cox QC MP to his role.

The Lord Chancellor said it gave him “great pleasure” to welcome Geoffrey Cox to the role of Attorney General for England and Wales. David Gauke MP went on to say:

“In advising the Government, you will be drawing on your vast experience from a long and distinguished career in private practice as a barrister on areas from civil fraud to human rights, from defamation to judicial review.”

The Lord Chancellor also thanked the previous Attorney General, Jeremy Wright QC MP, for his four years of service in the role.

Commenting on the ceremony, Geoffrey Cox QC MP said:

“It is a privilege to be sworn-in as Attorney General for England and Wales. I am grateful for the warm welcome I have been given from both the Lord Chancellor and the Lord Chief Justice and I thank them for their kind words. I very much look forward to working with them both in the unique roles we each play in upholding the rule of law at the heart of the UK constitution.”

The Attorney General was joined by his family and the Solicitor General, Robert Buckland QC MP, for the ceremony.

Link: Press release: Geoffrey Cox QC MP sworn in as Attorney General for England and Wales
Source: Gov Press Releases

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Press release: UK to host Australia-UK Ministerial talks

The UK Government will host Australian Foreign Affairs Minister Julie Bishop and Australian Minister for Defence Marise Payne in the UK for the 10th Australia-United Kingdom Ministerial Consultations (AUKMIN) on Friday 20 July 2018.

Foreign Secretary Jeremy Hunt and Defence Secretary Gavin Williamson will join their counterparts for discussions of high level foreign policy, defence and security issues between the United Kingdom and Australia. This AUKMIN marks over a decade since the talks began and is a chance for both nations to reflect on the enormous progress made over that time.

Speaking ahead of the talks Foreign Secretary Jeremy Hunt said:

Australia is one of the UK’s closest allies and I am delighted to be co-hosting Foreign Minister Bishop and Defence Minister Payne so soon after being appointed as Foreign Secretary. Our relationship with Australia is based on shared history, interests and values, and we have a dynamic modern friendship including a significant exchange of people and goods. The recent commissioning of nine warships from BAE, to be manufactured in Australia, is a sterling example of this relationship in action.

I look forward to our continued work together on global challenges and opportunities – based on our shared respect for the rules-based international system. The fight against extremism and terror, eliminating modern slavery and encouraging global co-operation will be top of the agenda during this tenth AUKMIN. Talks with businesses and government on boosting trade between us when we leave the EU will also be a top priority.

Defence Secretary Gavin Williamson said:

We are entering an exciting new era for Britain and Australia with our two nations having one of the strongest relationships in the world. With both our world class Armed Forces respected and present all over the globe, defence is one of the pillars of our deep and enduring relationship.

The £20bn Global Combat Ship deal between BAE Systems and the Australian Government demonstrates how defence and our Armed Forces are not just vital to keeping us safe but also crucial to delivering prosperity, jobs, and keeping our two countries at the height of innovation and advanced manufacturing. I look forward to strengthening our historic defence relationship further this week.

The United Kingdom has a strong and dynamic relationship with Australia underpinned by common values, shared heritage and a closely aligned strategic outlook. Military ties between the two nations are deep and long-standing, including a range of operational and intelligence activities such as joint-operations in Afghanistan and Iraq. The recent awarding of a £20 billion contract from the Australian Government to BAE Systems to build nine British Type 26 Global Combat Ships is a demonstration of the relationship between the two countries creating a safer world.

Further information

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Link: Press release: UK to host Australia-UK Ministerial talks
Source: Gov Press Releases

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Press release: Secretary of State pledges action on vital public appointments

The Secretary of State for Northern Ireland, the Rt Hon Karen Bradley MP, has today set out important action to ensure vital public appointments can be made in Northern Ireland, in the continued absence of an Executive or a sitting Assembly at Stormont.

The Secretary of State has instructed officials to work on legislation over the summer that would allow UK Government Ministers to make pressing appointments to leading public bodies.

The legislation would address crucial appointments needed for the Northern Ireland Policing Board, the Northern Ireland Judicial Appointments Commission (NIJAC) and the Probation Board for Northern Ireland to function.

The Policing Board has not been properly constituted since the 2017 Assembly election, as it has not had the political members it requires. NIJAC has fallen to a very low membership, particularly in its legal and judicial representation, affecting its capacity to operate. And the Probation Board’s entire membership will expire in November unless new appointments are made.

If there is no Northern Ireland Executive in place by the autumn, the Secretary of State will introduce the legislation at Westminster.

The Secretary of State said:

The UK Government’s priority is to restore the devolved institutions at Stormont. In the meantime, I have been clear that I will continue to take any urgent and necessary action to protect good governance and the delivery of public services in Northern Ireland.

I hope that an accommodation can be reached and an Executive formed so that Northern Ireland Ministers can make these important appointments in the autumn. If not, I am prepared to bring forward legislation to enable these appointments to be made to ensure that these bodies can continue their vital work.

Existing legislation confers responsibility for the most significant public appointments in Northern Ireland on Northern Ireland Ministers. In the absence of Northern Ireland Ministers, new legislation will be needed in the UK Parliament to enable certain key Northern Ireland appointments and a small number of appointments to UK-wide bodies to be made. The Northern Ireland appointments include a number of nominated members of the Northern Ireland Policing Board and the Northern Ireland Judicial Appointments Commission, in which the ministerial role is a formal one.

While work on this legislation continues over the summer, the UK Government will continue to engage closely with the political parties, and the Irish Government as appropriate, to encourage and support work towards an accommodation to restore the Executive.

Northern Ireland: Appointments

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Link: Press release: Secretary of State pledges action on vital public appointments
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Press release: A38 verges in Devon being transformed for bees and butterflies

Environment-conscious drivers may be concerned to see areas of wild vegetation being removed on the roadside of the A38 in Devon over the coming weeks, but it’s all in a good cause.

The land is being cleared to make way for a colourful carpet of native grasses and wild flowers that will form part of a wildlife corridor along Highways England roads in Devon and Cornwall.

Highways England ecologist Leo Gurbert explained:

The grassland and scrub growing on parts of our verges is known as ‘rank grassland’ and doesn’t support a wide variety of species, particularly bees and butterflies, as it has limited biodiversity value.

By replanting with a wider variety of native grasses and wildflowers we’ll be able to provide a much more wildlife friendly environment for a range of pollinators and insects, some of which are in decline.

The planting is taking place at 11 sites on the A38 between Ashburton and Wrangaton and will create almost six hectares of new grassland which will be enhanced by planting native perennial species including; yellow rattle and bird’s foot trefoil.

Leo added:

As well as pollinators such as bees, butterflies and hoverflies the new areas should support further biodiversity such as invertebrates, reptiles and small mammals and it should improve the appearance of the road and journey experience for everyone using it.

The Highways England grassland planting schemes are now in their third year and a total of 10 hectares have been planted along the A30 and A38 in Devon and Cornwall.

The seeds being planted this year have been sourced from a nearby farm to make sure the plants are as local as possible.

The scheme is being delivered under Highways England’s national Biodiversity Plan which is being supported by a £30 million national investment programme over the next five years.

The plan recognises road verges and associated land can be managed to provide great areas of wildlife habitat, relatively free from human access, that are often scarce in the surrounding landscape.

These road verges can also be used to connect fragmented habitats in the wider landscape, enabling plant and animal populations to move and interact, and so become stronger and more resilient.

The project also aligns with DEFRA’s National Pollinator Strategy and environmental charity’s Buglifes’ B-line initiative, which aims to create a nationwide network for pollinating species such as bees.

The scheme involves three phases of work between Monday, 23 July and Friday, 28 Sept 2018.

This work will be carried out overnight when traffic flows are at their lowest to keep disruption to a minimum and while most sites will require lane closures no delays are anticipated.

General enquiries

Members of the public should contact the Highways England customer contact centre on 0300 123 5000.

Media enquiries

Journalists should contact the Highways England press office on 0844 693 1448 and use the menu to speak to the most appropriate press officer.

Link: Press release: A38 verges in Devon being transformed for bees and butterflies
Source: Gov Press Releases

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Press release: UK House Price Index for May 2018

The May data shows:

  • on average, house prices have risen by 0.1% since April 2018
  • an annual price rise of 3%, which makes the average property in the UK valued at £226,351

England

In England, the May data shows on average, house prices have risen by 0.3% since April 2018.
The annual price rise of 2.9% takes the average property value to £243,583.

The regional data for England indicates that:

  • East Midlands experienced the greatest monthly price rise, up by 1.7%
  • the North East saw the most significant monthly price fall, down by 0.5%
  • London saw the lowest annual price increase, down by 0.4%

Price change by region for England

Region Average price May 2018 Monthly change % since April 2018
East Midlands £190,216 1.7
East of England £288,808 0.2
London £478,853 0.1
North East £128,680 -0.5
North West £157,531 0.1
South East £322,096 0.0
South West £251,877 0.1
West Midlands £192,322 0.2
Yorkshire and the Humber £158,966 1.0

Repossession sales by volume for England

The lowest number of repossession sales in March 2018 was in the East of England.

The highest number of repossession sales in March 2018 was in the North West.

Repossession sales March 2018
East Midlands 43
East of England 11
London 50
North East 83
North West 160
South East 66
South West 40
West Midlands 61
Yorkshire and the Humber 78
England 592

Average price by property type for England

Property type May 2018 May 2017 Difference %
Detached £370,143 £353,461 4.7
Semi-detached £227,310 £218,918 3.8
Terraced £195,982 £190,021 3.1
Flat/maisonette £225,465 £227,417 -0.9
All £243,583 £236,727 2.9

Funding and buyer status for England

Transaction type Average price May 2018 Annual price change % since May 2017 Monthly price change % since April 2018
Cash £229,187 2.8 0.4
Mortgage £250,840 3.0 0.3
First-time buyer £204,140 2.2 0.2
Former owner occupier £276,751 3.5 0.4

Building status for England

Building status* Average price March 2018 Annual price change % since March 2017 Monthly price change % since February 2018
New build £300,538 4.8 -2.3
Existing resold property £236,750 3.8 -0.3

*Figures for the two most recent months are not being published because there are not enough new build transactions to give a meaningful result.

Sales volumes for England

The most up-to-date HM Land Registry sales figures available for England show:

  • the number of completed house sales in March 2018 fell by 21.8% to 58,203 compared with 74,386 in March 2017
Month Sales 2018 Sales 2017 Difference %
February 54,733 60,662 -9.8
March 58,203 74,386 -21.8

London

London shows, on average, house prices have risen by 0.1% since April 2018. An annual price fall of 0.4% takes the average property value to £478,853.

Average price by property type for London

Property type May 2018 May 2017 Difference %
Detached £906,154 £890,430 1.8
Semi-detached £580,930 £571,569 1.6
Terraced £495,066 £487,874 1.5
Flat/maisonette £421,438 £430,111 -2.0
All £478,853 £480,902 -0.4

Funding and buyer status for London

Transaction type Average price May 2018 Annual price change % since May 2017 Monthly price change % since April 2018
Cash £502,988 -0.1 -0.1
Mortgage £471,466 -0.2 0.1
First-time buyer £418,735 -1.0 0.1
Former owner occupier £540,622 0.2 0.1

Building status for London

Building status* Average price March 2018 Annual price change % since March 2017 Monthly price change % since February 2018
New build £493,055 0.9 -2.5
Existing resold property £469,811 -0.9 -0.5

*Figures for the two most recent months are not being published because there are not enough new build transactions to give a meaningful result.

Sales volumes for London

The most up-to-date HM Land Registry sales figures available for London show;

  • the number of completed house sales in March 2018 fell by 28.6% to 6,180 compared with 8,659 in March 2017
Month Sales 2018 Sales 2017 Difference %
February 5,880 7,108 -17.3
March 6,180 8,659 -28.6

Wales

Wales shows, on average, house prices have fallen by 3% since April 2018. An annual price rise of 1% takes the average property value to £148,894.

Average price by property type for Wales

Property type May 2018 May 2017 Difference %
Detached £225,804 £221,407 2.0
Semi-detached £144,379 £141,980 1.7
Terraced £114,329 £113,598 0.6
Flat/maisonette £105,580 £109,576 -3.6
All £148,894 £147,428 1.0

Funding and buyer status for Wales

Transaction type Average price May 2018 Annual price change % since May 2017 Monthly price change % since March 2018
Cash £143,896 0.1 -3.6
Mortgage £151,866 1.5 -2.6
First-time buyer £128,339 0.6 -3.2
Former owner occupier £172,940 1.5 -2.7

Building status for Wales

Building status* Average price March 2018 Annual price change % since March 2017 Monthly price change % since February 2018
New build £208,824 7.9 0.6
Existing resold property £151,650 4.6 1.0

*Figures for the two most recent months are not being published because there are not enough new build transactions to give a meaningful result.

Sales volumes for Wales

The most up-to-date HM Land Registry sales figures available for Wales show:

  • the number of completed house sales in March 2018 fell by 13.8% to 3,368 compared with 3,909 in March 2017; and
  • there were 57 repossession sales in March 2018
Month Sales 2018 Sales 2017 Difference %
February 3,085 3,225 -4.3
March 3,368 3,909 -13.8

Access the full UK HPI

UK house prices have risen by 3.0% in the year to May 2018, down from 3.5% in the year to April 2018. This is the lowest UK annual rate since August 2013 when it was also 3.0%

The UK Property Transaction Statistics for May 2018 showed that on a seasonally adjusted basis, the number of transactions on residential properties with a value of £40,000 or greater was 99,590. This is 0.5% lower compared to a year ago. Between April and May 2018, transactions increased by 0.8%.

Looking at the regional level, the East Midlands was the fastest growing region with an annual house price growth rate of 6.3%, up from 5.1% in the previous month. London was the slowest growing region, falling by 0.4% in the year to May 2018, down from -0.3% in the previous month. This is the fourth consecutive month that London house prices have fallen over the year.

See the economic statement.

Notes to editors

  1. The UK House Price Index (HPI) is published on the second or third Wednesday of each month with Northern Ireland figures updated quarterly. The June 2018 UK HPI will be published at 9.30am on Wednesday 15 August 2018. See calendar of release dates.
  2. We have made some changes to improve the accuracy of the UK HPI. We are not publishing average price and percentage change for new builds and existing resold property as done previously because there are not currently enough new build transactions to provide a reliable result. This means that in this month’s UK HPI reports, new builds and existing resold property are reported in line with the sales volumes currently available.
  3. The UK HPI revision period has been extended to 13 months, following a review of the revision policy (see calculating the UK HPI section 4.4). This ensures the data used is more comprehensive.
  4. Sales volume data is also available by property status (new build and existing property) and funding status (cash and mortgage) in our downloadable data tables. Transactions involving the creation of a new register, such as new builds, are more complex and require more time to process. Read revisions to the UK HPI data.
  5. Revision tables have been introduced for England and Wales within the downloadable data. Tables will be available in csv format. See about the UK HPI for more information.
  6. Data for the UK HPI is provided by HM Land Registry, Registers of Scotland, Land & Property Services/Northern Ireland Statistics and Research Agency and the Valuation Office Agency.
  7. The UK HPI is calculated by the Office for National Statistics (ONS) andLand & Property Services/Northern Ireland Statistics and Research Agency. It applies a hedonic regression model that uses the various sources of data on property price, in particular HM Land Registry’s Price Paid Dataset, and attributes to produce estimates of the change in house prices each month. Find out more about the methodology used from the ONS and Northern Ireland Statistics & Research Agency.
  8. The UK Property Transaction statistics are taken from HM Revenue and Customs (HMRC) monthly estimates of the number of residential and non-residential property transactions in the UK and its constituent countries. The number of property transactions in the UK is highly seasonal, with more activity in the summer months and less in the winter. This regular annual pattern can sometimes mask the underlying movements and trends in the data series so HMRC also presents the UK aggregate transaction figures on a seasonally adjusted basis. Adjustments are made for both the time of year and the construction of the calendar, including corrections for the position of Easter and the number of trading days in a particular month.
  9. UK HPI seasonally adjusted series are calculated at regional and national levels only. See data tables.
  10. The first estimate for new build average price (April 2016 report) was based on a small sample which can cause volatility. A three-month moving average has been applied to the latest estimate to remove some of this volatility.
  11. Work has been taking place since 2014 to develop a single, official HPI that reflects the final transaction price for sales of residential property in the UK. Using the geometric mean, it covers purchases at market value for owner-occupation and buy-to-let, excluding those purchases not at market value (such as re-mortgages), where the ‘price’ represents a valuation.
  12. Information on residential property transactions for England and Wales, collected as part of the official registration process, is provided by HM Land Registry for properties that are sold for full market value.
  13. The HM Land Registry dataset contains the sale price of the property, the date when the sale was completed, full address details, the type of property (detached, semi-detached, terraced or flat), if it is a newly built property or an established residential building and a variable to indicate if the property has been purchased as a financed transaction (using a mortgage) or as a non-financed transaction (cash purchase).
  14. Repossession sales data is based on the number of transactions lodged with HM Land Registry by lenders exercising their power of sale.
  15. For England, this is shown as volumes of repossession sales recorded by Government Office Region. For Wales, there is a headline figure for the number of repossession sales recorded in Wales.
  16. The data can be downloaded as a .csv file. Repossession sales data prior to April 2016 is not available. Find out more information about repossession sales.
  17. Background tables of the raw and cleansed aggregated data, in Excel and CSV formats, are also published monthly although Northern Ireland is on a quarterly basis. They are available for free use and re-use under the Open Government Licence.
  18. HM Land Registry’s mission is to guarantee and protect property rights in England and Wales.
  19. HM Land Registry is a government department created in 1862. It operates as an executive agency and a trading fund and its running costs are covered by the fees paid by the users of its services. Its ambition is to become the world’s leading land registry for speed, simplicity and an open approach to data.
  20. HM Land Registry safeguards land and property ownership worth in excess of £4 trillion, including around £1 trillion of mortgages. The Land Register contains more than 25 million titles showing evidence of ownership for some 85% of the land mass of England and Wales.
  21. For further information about HM Land Registry visit www.gov.uk/land-registry.
  22. Follow us on Twitter @HMLandRegistry, our blog, LinkedIn and Facebook

Contact

Link: Press release: UK House Price Index for May 2018
Source: Gov Press Releases

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Press release: CMA proposes pension investment reforms

Investment consultants advise pension trustees, who oversee companies’ pension schemes, on how to invest their funds. Some pension schemes delegate investment decisions to fiduciary managers.
These firms have influence over half of all UK households’ retirement savings and work with pension scheme assets worth at least £1.6 trillion. Good investment management helps ensure people receive the pension they expect upon retirement.

In September last year the Competition and Markets Authority (CMA) launched a market investigation into this sector, at the request of the Financial Conduct Authority, and the CMA’s provisional decision has today been published.

While pension schemes can choose from a range of different firms, the CMA has identified competition problems within both the investment consultancy and – to a greater degree – the fiduciary management markets. Its provisional findings include:

  • Around half of pension schemes choose the same provider for fiduciary management that they use for investment consultancy. Their current investment consultant can steer them to do this. This means companies which offer both services have an advantage over other firms, when it comes to getting this business from existing clients.
  • A number of pension trustees have low levels of engagement with providers in the sector when choosing their first fiduciary manager. Only a third of trustees ask firms to compete for their business through a tender process, meaning no competitive pressure is put on their existing investment consultant or fiduciary manager to offer the best terms or highest performance.
  • Pensions trustees often do not have sufficient information on the fees or quality of these services to be able to judge if they’re getting a good deal from their existing investment consultant or fiduciary manager, or if they could do better elsewhere.

As part of today’s report, the CMA has proposed a number of changes to these markets to deal with its concerns, including:

  • Pension trustees selecting their first fiduciary manager must run a competitive tender. Trustees who have already appointed a fiduciary manager without doing this must also put the role out to tender within five years. This would increase competition in the market and reduce the competitive advantage held by the incumbent investment consultant when it comes to getting the new business.
  • Fiduciary management firms must provide clearer information on fees and how they have performed for other clients, so that pension trustees have the information they need to make meaningful comparisons between different providers.
  • The CMA is also making recommendations for new guidance from the Pensions Regulator, which would provide trustees with more advice on how to choose and scrutinise providers. It is also proposing that the government broadens the Financial Conduct Authority’s (FCA) regulatory scope, to ensure greater oversight of the industry.

John Wotton, Chair of the CMA’s Investment Consultants Market Investigation, said:

We’re concerned that pension schemes are not currently putting pressure on the market to get the best value for money on behalf of their members. They may lack the information they need to compare competing offers and so could be sticking with their existing investment consultant or fiduciary manager when there are better options available.

This is an extremely important sector that influences how well millions of people’s pension savings are invested, and it’s therefore vital we take steps to make sure that competition is working properly. That’s why we’re proposing a number of important reforms to the sector, including requiring pension trustees to run a competitive tender when they choose a fiduciary manager and ensuring that trustees have much better information about fees and investment performance.

The CMA is inviting feedback on the provisional decision report by 24 August 2018. You can find out how to submit this, as well as further information on the market investigation, here. The statutory deadline for the CMA’s final report is 13 March 2019.

Notes to Editors

  1. The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law. It has functions under the Enterprise Act 2002, as amended by the Enterprise and Regulatory Reform Act 2013.
  2. As set out in the FCA’s terms of reference, the investigation covers investment consultancy services, which provide advice to institutional investors (mainly pension funds) and employers on their pension schemes; and fiduciary management services, where the provider makes and implements decisions for the investor (for example, to select a fund in which to invest).
  3. The CMA appointed an independent group of panel members to carry out the investigation and make decisions in this case, which is chaired by John Wotton, one of the CMA’s designated inquiry chairs. The other panel members are Lesley Ainsworth, Bob Spedding and Tim Tutton. All the appointees are chosen from the CMA’s expert independent panel members, who come from a variety of backgrounds, including economics, law, accountancy and business.
  4. Enquiries should be directed to the CMA’s press team, press@cma.gov.uk, or 020 3738 6191.
  5. For more information see the CMA’s homepage, or follow us on Twitter, Facebook, and LinkedIn. Sign up to our email alerts to receive updates on the markets cases.

Link: Press release: CMA proposes pension investment reforms
Source: Gov Press Releases