LSL New Build Index - July 2014

With the housing market once again hitting the politicagenda and the announcement from the Bank of Englandgovernor, Mark Carney, that the market is the biggestdanger to economic recovery it is clear that house buildingis yet again seen as key to the UK’s economic future.And no one would disagree the overwhelming need formore house building to take place. In the latest LSL NewBuild Index James McAuley, Director of LSL Land & NewHomes - www.lsllandandnewhomes.co.uk - commentson the impact this is having on new build prices:

“In the year to end April 2014 the year on year growthin new build prices continued its steady increase togive an average figure of 3.7% - up from 3.5% in March2014. As in previous months, however, this figurehides a very diverse pattern of regional activity.“There continues to be strong ongoing growth in

Greater London which has shown further accelerationto 12.4% (up from 11.3% in March 2014) and it is thisthat is clearly highlighting the need for more housebuilding to take place. In the surrounding regionsthere is also a steady indication of price growth as theripple effect from Greater London takes hold. TheSouth East and South West are both showing growthat over 3% and the East Midlands is near to 2.5%.

“A general North South divide continues to be apparent,as has happened in previous property cycles, with mostnorthern regions showing growth rates of below 1%.This indicates that any market pick up in these regionsis not yet translating into price growth but, as demandincreases - particularly during the traditional busymonths to come - this is clearly something to watch.”

• Average new build prices rise by 3.7% year on year with growth in Greater London at 12.4%

• Slow growth rate - below 1% - in Northern regions

Notes

This Index has been prepared by e.surv using anonymised data based on a proportion of all newbuild valuations provided for lending purposes. Figures represent 12 month rolling averages foreach period. The copyright and all other intellectual property rights in the Index belong to e.surv.Reproduction in whole or part is not permitted unless an acknowledgement to e.surv as the sourceis included. No modification is permitted without e.surv’s prior written consent.

Whilst care is taken in the compilation of the Index no representation or assurances are made asto its accuracy or completeness. e.surv reserves the right to vary the methodology and to edit ordiscontinue the Index in whole or in part at anytime.

e.surv (www.esurv.co.uk) is the Valuation business of LSL Property Services plc (www.lslps.co.uk)and is the UK’s largest residential valuation practice, acting for lenders, developers, Social Housingorganisations and other stakeholders in the residential propertymarket. The business employs circa450 chartered surveyors and covers the entire UK.

LSL Land & New Homes is a trading style for members of the LSL Property Services Group EstateAgency Division, one of the leading residential property services groups in the UK. It’s strategy isto create partnerships with developers and builders to support their objectives and add value totheir businesses. It can provide integrated solutions for their benefit drawing on the expertise ofcompanies who are also under the LSL Group umbrella including valuation services (e.surv), rentalportfolio services, asset management services and estate agency services fronted by well-knownhigh street estate agency brands like Your Move and Reeds Rains. Services can be tailored to suiteindividual needs from bespoke site sales and marketing, agency referral to the disposal of partexchange, assisted schemes and new build stock, land sales and acquisitions.

For further information or enquiries regarding the underlying data of the LSL New Build Index,please contact Richard Sexton via email richard.sexton@esurv.co.uk or by phoning 07968 932118.

For further information about the LSL Property Services Group including LSL Land & New Homesand e.surv, visit www.lslps.co.uk