House builder Cala Homes has developed a fixed rate mortgage of less than six per cent in a package it says is designed to get the UK housing market going again. Available on all new properties at Cala homes developments throughout the UK, purchasers can take a preferential mortgage of 5.99 per cent, then seven per cent variable rate for the term of the loan, 7.3 per cent APR, fixed rate until July 31st 2011, at a loan to value of up to 90 per cent.

The Scotland-based firm also said it would refund the cost of the arrangement fee to the customer at completion. Cala homes managing director Alan Downie said:

“The lack of both buyers and of mortgage liquidity is hampering the housing market.

“This package enables us to offer a fantastic opportunity to purchase our new homes on preferential terms, while using our part exchange scheme to guarantee the sale of our purchaser’s old home on a hassle-free basis.”

The group hopes the offer will prove so popular it will help to reinvigorate the new homes market in the UK.

Cala has three sectors – Cala Homes, Cala Property and Cala Finance and has a network of six offices across the UK. This year it has already won the house of the year category at the Scottish Home Awards and the built in quality award from Birmingham City Council.

Saudi Arabia is planning to build a vast economic metropolis in the middle of the desert which will be the size of Washington DC. King Abdullah Economic City is to be built around 60 miles north of Jeddah and will be more than 150 sq miles in size when it is completed.

The BBC reports more than one million jobs will have been created by the real estate project by 2020, and the city will house two million people. With oil becoming more and more expensive, the Saudi authorities are thought to be looking at new ways of making sure the country has a cash flow in future.

Quoted by the BBC, Fahd al-Rasheed of developers Emaar said:

“This is on a scale unheard of before in the world. [The King Abdullah Economic City] includes one of the largest ports in the world, an education zone, a resort zone etc. It is the size of Washington DC and is being built in 15 years.”

Building.co.uk adds Saudi Arabia is still producing £510 million worth of oil a day, although this is not expected to continue indefinitely. Over the next few years officials also hope to improve the skill levels of residents of the Kingdom and also cut the country’s dependence on workers from abroad.

Local councils are under renewed pressure from the UK government to ensure new homes are protected from flood risks. Planning minister Caroline Flint unveiled five rules to prevent developments being build on areas vulnerable to rising water levels.

It is now compulsory to consult with the Environment Agency on planning applications in flood risk areas. Where councils ignore the agency’s advice on major developments the government has said it will step in.

Following last summer’s heavy flooding in parts of the UK, Ms Flint has announced five steps councils should abide by when deciding where a new development goes. She said:

“We saw very clearly last summer the devastating potential of severe storms. We can’t prevent heavy downpours or abandon those already living in flood plains but wherever possible we need to make sure councils are avoiding or reducing the risk of flooding in their communities.”

The new guidelines include making sure new home projects control flooding using sustainable drainage and good design and measuring whether the need for a new development outweighs flood risk. Ms Flint added:

“The Government has put tough planning rules in place for flood risk areas that we need councils to enforce.
“To help them we are issuing a five-step guide to planning new homes so councils have no excuse for failing to protect their communities.”

In 2007 South Yorkshire and Gloucestershire, among other areas, were hit by rising waters following heavy rain.