PRESS DIGEST - Financial Times - Nov 10

AFFORDABLE HOME STARTS TO DROP BY ONE THIRD

Targets set by the Homes and Communities Agency show that construction on social homes will be reduced by a third next year. 29,900 grant-funded housing starts are scheduled for 2010-11, down from the 45,500 target for the current financial year. The country's new property quango has also revealed that the value of its development assets has fallen from 1.9 billion pounds to under 800 million pounds as a result of the housing crash. The new valuation takes into account an impairment charge of 540 million pounds and a 600 million pound reversal of gains made during the rising market.

HOUSING MARKET REVIVAL HELPS LIFT CONSUMER SALES

New data from the British Retail Consortium and KPMG shows that retail sales in October rose by 5.9 percent compared with a year earlier, boosted by half-term holidays and Halloween. The increase was the biggest one-month rise since March 2007, excluding figures from April, which were lifted by the Easter holidays. The Royal Institute of Chartered Surveyors has also registered a further increase in the number of agents reporting rising sales during October. The most dramatic improvement was seen in London, where 95 of surveyors are reporting rising prices, a level unseen since 1996.

COMMERCIAL PROPERTY SURGES

Research by leading property consultancy Colliers CRE has found that a rapid recovery in commercial property values from the deepest slump on record to near bubble-like conditions may see the sector turn positive this year. Colliers has cautioned however that the strength of the rally could lead to a second price correction. Colliers has significantly upgraded its forecasts for this year and next, estimating that the total return for 2009 will be 0.4 per cent, compared to its previous forecast of minus 7.3 per cent for the year. Property consultants CB Richard Ellis say that British property capital values rose two percent in October, the strongest growth in the history of its index.

FSA CHIEF CALLS FOR UNITY TO CHALLENGE BANK EXECUTIVES

Hector Sants, chief executive of the Financial Services Authority, has accused bank leaders of failing to learn the necessary lessons from the financial crisis. He also said that a proposed reorganisation of the regulator by the Conservative party would sap precious resources at a time when the City of London should be forced to change its culture through tight supervision and tough enforcement. He went on to highlight the fact that the FSA has imposed 19.8 million pounds in fines since April, well ahead of last year's pace, which resulted in a record 27.3 million pounds in fines.