Where there’s a will there’s a wrangle

Figures out today reveal that 1 in 4 families have fallen out over the contents of a will, with a staggering 42% of siblings never speaking again.

The research, conducted by YouGov for Scottish Widows, revealed that women are more likely to hold a grudge than men with 46% (compared to 36%) of women falling out with brothers and sisters permanently. Sibling rivalry is the strongest, with most family fallings out being between brothers and sisters.

When it comes to dividing of an estate, money is by far the biggest sticking point for families, with 35% of all rows being over the cold hard cash. 1 in 5 (20%) think the estate was divided unfairly, 12% felt they deserved more cash, while 5% contested that they were verbally promised an item that wasn’t then left to them.

According to psychologist Donna Dawson, family rows over inheritance not uncommon. "Money is a very emotional issue, and never more so than at the time of a family member’s death when feelings are running high and old jealousies resurface," said Donna. "Often for those family members left behind, primitive tribal feelings will come to the fore. This is especially true of step-brothers and sisters where ‘blood’ relatives will feel more entitled to cash than those related by marriage."

Almost two thirds (60%) of people have yet to make a will, and it seems that only something life changing such as illness (49%) a serious accident (38%) or having kids (28%) will prompt those who haven’t to finally take action. A staggering 16% have no intention of ever making one.

Anne Young, tax expert at Scottish Widows commented: "The research reveals a general misconception that making a will should only be done when the person making it has substantial wealth to leave. True the bigger the estate, the more complex the division of it will be however, a will isn’t just about the estate."

"It can prevent arguments over who’ll look after children right down to the divvying up of items that may be of little monetary value but which could cause unnecessary upset if fought over by those left behind."

Not only sufferers are using anti-noise website

People suffering at the hands of their noisy neighbours have been seeking help from a newly launched campaign.

The NoiseConcern website – www.NoiseConcern.org – has had almost 2,500 hits in just four days from people being subjected to a noise nightmare by thoughtless neighbours.

It is no surprise that the majority of hits for the website have been made between 8am and 9am - after many have suffered a long and sleepless night.

But there are already positive signs that those guilty of creating a racket at home, are hoping to change their ways.

The most downloaded document from the website since the launch, is the Community Code ‘How to be a good neighbour’, produced by Noise Network.

The NoiseConcern campaign was launched this week in a bid to help those no longer willing to suffer in silence.

A radio advert and widespread poster campaign are helping raise awareness of the problem. The NoiseConcern website can be used as an information tool, giving advice on how to address your neighbour’s racket before it escalates.

Everyday millions of people are subjected to the annoying din from next door. Whether it is raised voices, slamming doors, thumping music or a snarling dog, the devastating affects are the same.

Frustration and lack of sleep leads to increased stress levels, which seriously impacts on life quality.

Alan Woods, Chief Executive of ENCAMS, the charity behind the campaign, said: "Living with noisy neighbours can be hell. Our new research shows how millions of people are suffering every day."

"Neighbour noise will never be switched off completely, but we hope the research, campaign and website will make people aware of how their noise is ruining other people’s lives."

Rightmove wriggles over Hip fiasco

The first of what promises to be string of heavy consequences following the government’s U-turn on home information packs has already happened. Property portal giant Rightmove has announced a £22 million pull-out from the Hips business.

Rightmove, which floated on the stock market earlier this year, had intended to become the biggest supplier of home information packs by the time of the intended introduction in June next year.

However, firm now says the unexpected withdrawal of the mandatory home condition report part of the Hip had resulted in greater uncertainty over the final contents of a legally compliant Hip.

"We have therefore concluded that the different requirements of agents, the scaled down revenue opportunity for Rightmove and increased uncertainty, leaves us no option but to withdraw from providing packs to our members," the firm said in a letter to member agents who had signed up with them.

The project has already cost Rightmove some £7 million and they expect to spend another £1.2 million extracting themselves from the business plan.

Rightmove.co.uk was founded by three of the UK’s largest estate agency chains – Halifax, Countrywide & Connells. In March this year Rightmove plc was publicly listed on the London Stock Exchange with the three original investors each retaining a significant shareholding. Shares fell on the government U-turn announcement and stockbroking firm Panmure Gordon is reported to consider Rightmove’s Hips business was now worthless - having previously valued it at £180m.

Rightmove were members of the Association of Home Information Packs Providers and their director general Mike Ockenden stressed that Rightmove's decision did not signal that Hips were dead in the water.

"Rightmove had a very particular business model which meant investing heavily in Hips," he said.

Some other AHIPP members have indicated a commitment to the scheme and have plans ready for Hips with our without the home condition report. However, another AHIPP member Spicerhaart is calling for a boycott of the scheme they are now branding a shambles.

UK households see drop in spending money

The average UK household is now worse off than at any time in the last five years, according to a new report into the amount of cash we have left to spend every month.

The study by Ernst & Young into consumers’ spending power reveals the monthly discretionary income for a typical household has dropped almost 10% since 2002/03. The average household now has £82.02 less to spend each month after total fixed monthly outgoings, compared to 2002/03.

Indeed ‘fixed’ monthly household costs continue to outstrip wage inflation and have risen by more than 30% since 2002/03. These costs now account for more than 71% of a typical household’s net income compared with 64% four years ago.

Tim Sleep, director of retail at Ernst & Young comments: "Increases in average mortgage payments, coupled with rising fuel prices and massive hikes in utility prices, continue to squeeze the typical UK household."


"Many UK consumers are shackled by these constant increases in fixed monthly outgoings. Consequently, discretionary spending power continues to decline and consumers are simply not in a position to spend freely."

And the situation is set to get worse as energy prices soar. Following news earlier this week that Energy giant EDF raised household costs another 19% on gas bills and 8% for electricity from the end of the month - see our story Bigger energy bills - and more to come - British Gas has now also decided to raise prices by up to 12.4% for its 10.7 million customers from September.

Top ten indicators of emerging markets

To help potential investors in their quest to identify emerging hotspots, experts from the Property Investor Show (22 to 24 September, ExCeL London) have put together a list of top ten indicators to look out for:

1. An expanding economy and increase in tourism – Countries with an expanding economy will witness an increase in tourism and popularity, leading to high rental demand and increasing the returns on capital invested.

2. Political stability – It is important for investors to research the political environment of the country they are planning on investing in, especially if there has been a history of war and instability.

3. Government and private investment in the area – Investment encourages improvements in the local infrastructure and amenities and brings money into the area, pushing house prices upwards.

4. Improvements in local transport links – Accessibility is a major factor with new or expanded airports and upgraded roads and railways increasing the inward movement to an area.

5. House-buying process simplified for foreigners – Keeping abreast of legal issued surrounding foreigners’ access to the housing market or removal of purchasing restrictions allows investors to move in and take advantage of the lower property prices before everyone else jumps on the bandwagon.

6. Large companies relocating to the area – This brings instant investments and often causes employees to relocate to the area. Corporate lets, for example in Sofia, the capital of Bulgaria, are a good opportunity for investors.

7. Planned entry to the European Union – This brings the expectation of inward investment and the easing of restrictions on the movement of capital and trade. Many of the new EU member states such as Cyprus have not disappointed.

8. Large scale leisure facilities being constructed – Ski runs, golf courses and hotels increase property prices and push up demand for second homes.

9. Low cost flight routes opening up – Cheap charter flights that fly directly into an area increase the demand for holiday homes and rented accommodation.

10. Hosting an international sporting event – Major events on the sporting calendar such as the Olympic Games or golf tournaments encourage development and regeneration and attract tourists to the area, boosting house prices.

Trisha Mason, Founder and Managing Director of VEF French Property comments: “Identifying hotspots needs a lot of market knowledge as prices are obviously governed in most places more by the local property buyer than by the overseas property buyer. You need to know about proposed transport links, about company investment in the area, what trends are occurring within the market and to understand the culture of the country. By the time hotspots have hit the media they are old news. There are still some places where property values remain low and where there is a good opportunity to see strong capital growth within five years but there are not many and they are guarded jealously, so you have to act fast to keep ahead.”

Nick Clark, Managing Director of the Show comments: “Seasoned investors are constantly on the look out for the next property hotspots and with increasing numbers of people now choosing to invest in overseas property, any advice that can put them one step ahead of the masses, giving increased capital gain, is a particular advantage. The experts at the Property Investor Show will be able to help point out the next big thing in property investment, and will be holding seminars advising how to identify emerging hotspots.”

Over 100 overseas property companies operating in a range of markets will be on hand at the Property Investor Show in September to give expert advice. Exhibitors will include VEF French Property, Florida Countryside, Brazil Property Services and MacAnthony Realty. The show will also be host to trade associations, estate agents, developers, mortgage and finance specialists from the UK and a comprehensive programme of expert-led seminars focusing on different industry issues, giving visitors all the information they need to successfully invest in property.

Further details on the Property Investor Shows are available at www.propertyinvestor.co.uk.

Fix your deposit shortfall

Despite planning to spend two years saving for their deposit, first time buyers will face a potential shortfall of over £5,000 each, according to a report from Alliance & Leicester Mortgages.

The Alliance & Leicester Mortgages study looks at how much and for how long first time buyers plan to save for their deposit. On average they want to save a deposit of £11,710 – about eight per cent of the average first time buyer house price. However when it comes to saving, they are looking to put away £270 a month for two years, which with interest gives them over £6,570. This leaves them with a £5,140 shortfall of their ideal target.

In reality, to achieve what they want, aspiring first time buyers will have to put aside almost double – nearly £500 a month! Alternatively, and perhaps more realistically, they need to save for longer - around three years and six months at current saving levels. Surprisingly, nearly a third (30%) of potential first time buyers are not saving for a deposit at all, despite having aspirations of getting onto the housing ladder in the next two years.

Richard Taylor, Head of Mortgages at Alliance & Leicester said: "There is a clear mismatch between how much, and for how long first time buyers are willing to save, and their ideal target deposit to buy their first property."

"With the average first time buyer house priced at just over £135,000, the deposit of over £11,000 that first time buyers want equates to about eight per cent which would give them a sizeable slice of equity in their first home."


"To turn dreams into reality it’s a good idea to plan and budget carefully – trying to cut back on luxury expenditure, like takeaways and expensive nights out, will all help to achieve their dream more quickly."

Ideal target deposit is five per cent deposit

It is evident from the study that first time buyers are expecting to save almost one third more than they actually will in the time they have allowed themselves. But their ideal target deposit is some way above the standard five per cent deposit which is usually sufficient for first time buyers to get a competitive mortgage rate and a better deal than those who have no deposit at all.

A five per cent deposit for the average house price for a first time buyer currently stands at £6,787 – 42% less than their ideal target deposit. At £270 a month, current saving levels identified from the study, it will take first time buyers just over two years to save a five per cent deposit.

Cutting back on extras

The study also shows that aspiring first time buyers are not saving as much as they could. It reveals that they spend £136 a month on ‘extras’ – this is money spent on non-essential items such as socialising, eating out, music and other leisure activities. Cutting back on these extras could get them the deposit they need a lot quicker. Aspiring first time buyers currently spend £1,639 a year on leisure, with Londoners spending the most at £2,204 a year – 34% more than the regions.

Overall if first time buyers were to cut back on leisure by half – this amounts to £68 a month - and added this extra money into their ‘deposit savings pot’, they would be able to save their ideal target deposit of £11,710 eight months sooner in just over two years and eight months. This compares with nearly three years and six months at current levels.

Richard Taylor added: "It is worth noting that while first time buyers seem to have an unrealistic expectation of just how much they need to save in order to reach their ideal deposit, a decent deposit is not completely out of reach."

"First time buyers could save a five per cent deposit in the time scale that they have set themselves. And putting aside just £68 extra a month will get them to their ideal deposit in two years eight months."

"If house prices continue to increase, it is in the interest of hopeful first time buyers to make saving for their deposit a priority. Any delay could mean they see further increases in house prices, and need to keep on saving longer in order to reach their target deposit as a result."

RE markets are increasingly transparent

Commercial real estate markets around the world have become increasingly transparent over the past two years, according to Jones Lang LaSalle’s 2006 Real Estate Transparency Index, a ranking of real estate market transparency in 56 countries and territories.

“Since the first publication of the Jones Lang LaSalle Real Estate Transparency index in 1999, we have charted gradual improvement in a number of transparency measures, but progress has been especially rapid in the two years since we last produced the index,” said Jacques Gordon, LaSalle Investment Management’s Global Investment Strategist.

Gordon continued: “Overall, two-thirds of the countries ranked in our 2004 survey exhibited some or significant improvement. Some 14 countries moved up a full tier in our five-tier transparency ranking system and none slipped back. Additionally, many more countries earned higher transparency scores while remaining in the same tier.”

He added: “Improvements can be observed in several different dimensions of transparency. Among the greatest sources of improvement are the introduction of new investment performance benchmarks, more financial disclosure by listed real estate companies and heightened external governance of these listed companies. That said, there has been slow progress in the legal and regulatory categories — two areas of great interest to investors and occupiers.”

Top performers

Australia, the United States and New Zealand take the top spots as most transparent companies, followed closely by Canada and the United Kingdom. With exemplary underlying legal and regulatory factors, these countries serve as role models in their respective regions.

In this year’s survey, 23 countries rank as highly transparent or transparent, up from 21 countries earning the same designation two years ago. In 2006, 10 countries ranked as highly transparent, compared with six in 2004.

Highly transparent countries for the first time in 2006 are Hong Kong, Sweden, France and Singapore, each having jumped to Tier 1 from Tier 2 since the 2004 survey. France and Sweden were buoyed by long-time series investment performance indices, readily available market fundamentals data, strong accounting standards and disclosure regimes, consistently applied regulations, strong legal frameworks and high professional standards.

Hong Kong and Singapore were helped by their ability to meet global improvements in accounting standards and governance and more publicly reported property information. Mexico and the United Arab Emirates also exhibited significant improvement, although they remained in the same tier as they were two years ago.

The Index ranks Vietnam, Venezuela and Egypt as the least transparent real estate markets surveyed.

Asia Pacific region

In Asia Pacific, there has been marked improvement, with more than half of the countries studied in the region moving up the real estate transparency tiers.

“The global focus on accounting standards has impacted many countries, including those in Asia Pacific,” notes Dr Jane Murray, Head of Research, Asia Pacific at Jones Lang LaSalle. “The opening up of many Asian markets to international competition has accelerated both the adoption of global practices and publication of market information in English.”

Japan and India exhibited the greatest transparency improvement, each moving up a transparency tier. Japan, which improved from semi-transparent to the lower end of the transparency tier, was bolstered by the availability of market information, improvements in taxation transparency and the enforceability of contracts. India’s improvement from low- to semi-transparent was helped by the availability of market information, improved general accounting and reporting processes, and substantial improvement among market participants about the legal process that relate to contract enforcement and legal relief.

Europe, the Middle East and Africa

“While there has been little significant movement in the transparency rankings of the more mature markets across Europe, the Middle East and Africa regions, there has been greater improvement in the less mature markets,” said Paul Richards, Director, Strategy and Research for Jones Lang LaSalle.

While a number of mature markets jumped tiers (France and Sweden from transparent to highly transparent, and Portugal and Italy from semi-transparent to transparent), few have seen dramatic changes in either the availability of market information or in legal and planning services.

With the exception of Greece, pre-accession EU members, as well as Switzerland and Norway, are now considered transparent. These markets are characterized as having medium-length time-series investment performance indices, readily available data on market fundamentals, strong accounting standards and disclosure regimes, consistently applied regulations, strong legal frameworks and high professional standards. Some markets lack financial information in English. Greece still lacks an accessible land registry or reliable performance indices and has poor data on market fundamentals.

South Africa is the only transparent non-European real estate market in Europe, Middle East and Africa. Its market has robust investment performance indices, strong regulatory and legal infrastructures, efficient transaction processes and high professional standards.

The Middle Eastern region saw transparency improvements across all markets, although Israel remains the only semi-transparent market. The strongest improvers are the United Arab Emirates and Saudi Arabia, where governments have become increasingly business and investment friendly and have exhibited improvements in accounting, legal and regulatory frameworks.

North and South America

North and South American countries improved their transparency scores over the past two years. High transparency in the US is an important contributor to the record inflows of cross-border capital to the country over the last two years. When new transparency factors (added in 2006) are taken into account, Mexico showed the most improvement in the region, as its transparency score moved up from a low Tier 3 country in 2004 to a high Tier 3 score in 2006. These factors include the availability of property information in the transaction process and the professionalism of real estate agents.

Brazil and Argentina made the most improvement in 2006, each jumping from Tier 4 to Tier 3. Brazil benefited from improvement in the availability of market fundamental data, while Argentina was helped by improved transparency in the governance of publicly listed real estate vehicles. Both countries also were helped by improved transparency of planning and building codes and eminent domain policies.

To see the full Jones Lang LaSalle Global Real Estate Transparency Index 2006, please visit http://www.joneslanglasalle.com/en-GB/research/researchabstract?artid=2452

RE markets are increasingly transparent

Commercial real estate markets around the world have become increasingly transparent over the past two years, according to Jones Lang LaSalle’s 2006 Real Estate Transparency Index, a ranking of real estate market transparency in 56 countries and territories.

“Since the first publication of the Jones Lang LaSalle Real Estate Transparency index in 1999, we have charted gradual improvement in a number of transparency measures, but progress has been especially rapid in the two years since we last produced the index,” said Jacques Gordon, LaSalle Investment Management’s Global Investment Strategist.

Gordon continued: “Overall, two-thirds of the countries ranked in our 2004 survey exhibited some or significant improvement. Some 14 countries moved up a full tier in our five-tier transparency ranking system and none slipped back. Additionally, many more countries earned higher transparency scores while remaining in the same tier.”

He added: “Improvements can be observed in several different dimensions of transparency. Among the greatest sources of improvement are the introduction of new investment performance benchmarks, more financial disclosure by listed real estate companies and heightened external governance of these listed companies. That said, there has been slow progress in the legal and regulatory categories — two areas of great interest to investors and occupiers.”

Top performers

Australia, the United States and New Zealand take the top spots as most transparent companies, followed closely by Canada and the United Kingdom. With exemplary underlying legal and regulatory factors, these countries serve as role models in their respective regions.

In this year’s survey, 23 countries rank as highly transparent or transparent, up from 21 countries earning the same designation two years ago. In 2006, 10 countries ranked as highly transparent, compared with six in 2004.

Highly transparent countries for the first time in 2006 are Hong Kong, Sweden, France and Singapore, each having jumped to Tier 1 from Tier 2 since the 2004 survey. France and Sweden were buoyed by long-time series investment performance indices, readily available market fundamentals data, strong accounting standards and disclosure regimes, consistently applied regulations, strong legal frameworks and high professional standards.

Hong Kong and Singapore were helped by their ability to meet global improvements in accounting standards and governance and more publicly reported property information. Mexico and the United Arab Emirates also exhibited significant improvement, although they remained in the same tier as they were two years ago.

The Index ranks Vietnam, Venezuela and Egypt as the least transparent real estate markets surveyed.

Asia Pacific region

In Asia Pacific, there has been marked improvement, with more than half of the countries studied in the region moving up the real estate transparency tiers.

“The global focus on accounting standards has impacted many countries, including those in Asia Pacific,” notes Dr Jane Murray, Head of Research, Asia Pacific at Jones Lang LaSalle. “The opening up of many Asian markets to international competition has accelerated both the adoption of global practices and publication of market information in English.”

Japan and India exhibited the greatest transparency improvement, each moving up a transparency tier. Japan, which improved from semi-transparent to the lower end of the transparency tier, was bolstered by the availability of market information, improvements in taxation transparency and the enforceability of contracts. India’s improvement from low- to semi-transparent was helped by the availability of market information, improved general accounting and reporting processes, and substantial improvement among market participants about the legal process that relate to contract enforcement and legal relief.

Europe, the Middle East and Africa

“While there has been little significant movement in the transparency rankings of the more mature markets across Europe, the Middle East and Africa regions, there has been greater improvement in the less mature markets,” said Paul Richards, Director, Strategy and Research for Jones Lang LaSalle.

While a number of mature markets jumped tiers (France and Sweden from transparent to highly transparent, and Portugal and Italy from semi-transparent to transparent), few have seen dramatic changes in either the availability of market information or in legal and planning services.

With the exception of Greece, pre-accession EU members, as well as Switzerland and Norway, are now considered transparent. These markets are characterized as having medium-length time-series investment performance indices, readily available data on market fundamentals, strong accounting standards and disclosure regimes, consistently applied regulations, strong legal frameworks and high professional standards. Some markets lack financial information in English. Greece still lacks an accessible land registry or reliable performance indices and has poor data on market fundamentals.

South Africa is the only transparent non-European real estate market in Europe, Middle East and Africa. Its market has robust investment performance indices, strong regulatory and legal infrastructures, efficient transaction processes and high professional standards.

The Middle Eastern region saw transparency improvements across all markets, although Israel remains the only semi-transparent market. The strongest improvers are the United Arab Emirates and Saudi Arabia, where governments have become increasingly business and investment friendly and have exhibited improvements in accounting, legal and regulatory frameworks.

North and South America

North and South American countries improved their transparency scores over the past two years. High transparency in the US is an important contributor to the record inflows of cross-border capital to the country over the last two years. When new transparency factors (added in 2006) are taken into account, Mexico showed the most improvement in the region, as its transparency score moved up from a low Tier 3 country in 2004 to a high Tier 3 score in 2006. These factors include the availability of property information in the transaction process and the professionalism of real estate agents.

Brazil and Argentina made the most improvement in 2006, each jumping from Tier 4 to Tier 3. Brazil benefited from improvement in the availability of market fundamental data, while Argentina was helped by improved transparency in the governance of publicly listed real estate vehicles. Both countries also were helped by improved transparency of planning and building codes and eminent domain policies.

To see the full Jones Lang LaSalle Global Real Estate Transparency Index 2006, please visit http://www.joneslanglasalle.com/en-GB/research/researchabstract?artid=2452

How to profit in a declining market

In South Florida and most other places in the U.S. the supply of homes and condominiums exceeds demand and subsequently prices are starting to decline. However, “even in declining markets it is possible to invest in real estate and realize a good profit on your investment, or to sell your own home and get an above-market price for it,” says Miami Realtor, Izzy Buholzer.

Buholzer, whose firm Home & Business Realty, Inc. specializes in residential and investment real estate in Miami and South Florida said that, “One of the ‘secrets’ of making money in declining markets is to utilize a ‘lease with option to buy’ strategy.”

He explained that a lease-purchase is advantageous to property owners as well as buyers for a variety of reasons.

According to Buholzer, lease-purchase properties are more attractive than ordinary rentals.

“Many people want to own their own house or apartment but are just not ready to do it immediately. If you offer your property as a ‘lease-purchase’ or ‘rent to buy’ then you will get more responses to your advertisements, and will be able to get a good tenant more quickly,” he continued.

Buholzer also says another advantage in lease-purchase arrangements is that it attracts more “responsible” tenants, which leads to lower maintenance costs.

“People who have entered into a lease purchase arrangement will treat the house or apartment as their ‘own’ because they have a good hope of owning it outright in the near future,” Buholzer explained.

However, it is not only lower costs that make the lease-purchase attractive for property owners. The cash-flow for the owner is greater when there is a lease-purchase arrangement in place, Buholzer says.

“The reason for this is that in addition to collecting the rent a portion of the option fee will be payable each month,” Buholzer said.

The option fee is the amount that the tenant pays in order to reserve the right to purchase the property at a future date.

In addition to lower maintenance costs, the property can be sold up to 15% above the prevailing market price. Buholzer explained that “you can getter a higher amount for the property because the people who are renting from you would not be able to otherwise buy a house are willing to pay a bit more in order to get a chance to buy a property that is attractive to them.”

To illustrate the point of why there are now declining real estate markets, Buholzer pointed out that “in the Miami area over the last four years an estimated 40 % of new homes were bought by investors and speculators. Inventory (homes on the market) has tripled in the last twelve months while sales have dropped to less than 8 % per month. On top of that, in the last three years 10 times more condos were being built/approved than in the entire previous ten years. That’s 70,000 vs. 7,000.”

Buholzer said that despite this seeming oversupply of housing or “declining market,” investors and careful homeowners have been able to get a good return on their investments by using the lease purchase strategy.

For more information visit Mr. Buholzer’s website www.ibmiami.com

SPAIN VS. CENTRAL EUROPE

Now more than ever, overseas property buyers are faced with myriad choices of where to spend our well-earned savings, and where we should invest.

In recent years, we have been confronted with Spain, Florida, Dubai, Croatia, Bulgaria, Romania, Poland and Estonia (amongst many others) touted as being the ‘Next Big Thing’. As bewildered potential purchasers wade their way through all manner of stats and claims, it is important to remember that you are not always comparing like for like.

No-one goes into the process of buying a property overseas lightly. If there is just one thing that the Pocomed website can teach you, it is to do your research thoroughly and ask as many questions as you can before putting your money down. More importantly, when buying a property overseas, price is not absolutely everything.

One of the most common dilemmas faced by overseas property buyers is whether to invest in the traditionally popular market of Spain or any of the ’emerging markets’ of central and eastern Europe.

Spain remains the number one destination for Britons buying property overseas. A recent report states that 65% of Brits would choose Spain as their number one overseas property destination, and for over 38% it would be the only possible choice. By early 2005, Spanish town halls had registered 29% more British residents than the previous year, according to the research from IESE (University of Navarra Business School), commissioned by Barclays Bank

Buying property in Spain is an experience much closer to buying in the UK. The system is set up for overseas buyers and with years of experience in catering to UK buyers, modern developments are for the most part hassle-free and impeccably-planned. Prices are also closer to UK levels, though bargains are still available.

Spanish property agent Nick Snelling of Casas La Flor feels Spain should make the most of this fact: “Spain is no longer cheap and cannot compete price-wise with eastern Europe. But the reality (again missed by most) is that when you buy here you are not just buying into bricks and mortar. In reality, you are buying into a first world country where the living standards are identical to anywhere in northern Europe - proven political and economic security, a truly impressive health service and a UK level of general infrastructure. None of this comes cheap and it is my contention that Spain should be selling itself as an ’expensive’ place to live - but for very fine objective reasons.”

Since the emergence of the former Communist states of central and eastern Europe, and their accession to the European Union the property markets have opened up. We frequently hear of resorts and developments and the claim that they are ’like Spain 20 years ago’.

This statement can often be truer than people realise. Prices in Central Europe are significantly lower than in more established markets, and the investment opportunity seems superb. Prices certainly are attractive - £31,403 for an apartment at the Balkan Heights resort in Bulgaria's Pirin mountains, for example! I’m not sure you could get much in some areas of Spain for that price, even 20 years ago!

On the other hand, infrastructure, though improving, is often poor and communications can be patchy. There is little doubt that the prospects for medium-term investment in central and eastern Europe are outstanding. The amount of development currently taking place gives a wide choice of property types, as well as coastal, mountain and city locations.

The tourism market is also picking up rapidly, with more and more tour operators adding Black Sea resorts to their portfolios and beginning to entice holidaymakers with promotions.

If you are intending to use the property yourself for at least part of the time, or as a retirement home, make sure it is somewhere you are happy to spend a great portion of your time, and somewhere easy to reach should you want to return to the UK quickly.

Wherever you decide to buy, the most important thing is to identify your reasons for buying and what role you wish the property to fulfill. Once you have done this, it should be much easier to look at the destinations which can help you achieve your dream of owning a property abroad.

The most important extra room in the house

Whether you desire a quiet house in the country or hectic city living, there can be no doubt that owning a little patch of garden is a very attractive feature for any aspiring homeowner.

And for many, it seems that a garden is more important then an extra room in the house. A hefty 61% of us would choose to live without a utility room and over half of respondents would also forgo a second bathroom or even an extra bedroom to ensure their access to outdoor space.

But new research by Halifax Estate Agents reveals that two out of five people found it difficult to find properties for sale or to rent with a suitable garden or outside space.

So if you are selling - pay some attention to the garden, advise the agents.

Whilst both sexes agreed that a flagged patio area is the most attractive feature when looking for a garden, women were equally attracted to established shrubs and trees whereas men still look for that old time favourite bolt hole – the shed or greenhouse!

Water features and decking are also popular elements along with the idea of a vegetable patch which 32% thought appealing.

Less desirable garden features included general rubbish and being overlooked by the neighbours.

Colin Kemp, managing director of Halifax Estate Agents, commented: "Buyers are increasingly attracted to homes offering the possibility for outdoor living. With today's hectic lifestyles, people are looking for an alternative place to relax in their spare time."

"Our survey shows that having a garden is a distinct advantage when selling a property. With a little maintenance, this area can prove extremely appealing to prospective buyers and can even be the determining factor in a sale."

Here are a few garden tips to help sell your property:

Treat your garden as you would any other room in the house and keep it tidy.
Ensure shrubs and hedges are kept in trim and weed any flowerbeds regularly.
Avoid letting the grass grow to an unruly length.
Try using a pressure washer to clean any patio areas. You will be surprised how much this brightens the area.
Try planting a few pots or tubs as a little splash of colour can have a dramatic affect and these can even be taken with you when you move.

Revival of traditional neighbourhood values?

Friendly neighbours and a sense of community are revealed as top priorities in a recent survey of British homebuyers, showing a revival in traditional neighbourly values.

The research, investigating what homebuyers look for in a positive living environment, showed that a sense of community spirit averaged four out of a possible five (1 being least important; 5 the most) for homebuyers when choosing a new area to live in. This rated only second in importance to a feeling of safety, which scored five out of five by all participants.

These community values have been reflected in the planning of Linden Homes’ new waterside village development, Water Colour in Redhill, Surrey, which aims to incorporate a number of the top priorities from the homebuyer wish list.

The survey results also reveal a desire in homeowners to improve their neighbourly relations. Following research last year showing that 59% of respondents did not even know the names of their neighbours, the latest survey revealed the majority of respondents hoped for a relationship beyond a mere polite acknowledgement with 41% wanting to engage in regular conversation. An encouraging 31% would want to feel confident enough to trust neighbours to hold their spare key or feed pets while away from home.

In today’s busy communities, people often live a long way from friends and family and have to rely on local friends and neighbours for support, especially in a crisis. In light of events such as the Buncefield oil explosion, and the recent council moves to introduce emergency plans into the community, residents may be looking increasingly to their neighbours to provide this sense of security.

Ian Randall, managing director of Linden Homes South East, commented: "These results show that a sense of community is once again of the utmost importance to homebuyers, who rate finding a home in pleasant, safe surroundings as a top priority when laying down roots."

Impartial financial advice is ‘key’ value

Independent Financial Advisers are most valued by consumers for their ability to provide impartial financial advice ahead of other factors such as helping save money, a survey by financial research company Defaqto shows.

However the research reveals that nearly two thirds of adults have never visited an independent financial adviser and nearly half do not want or believe they would ever need independent financial advice.

Around 22% of people polled – more than 10 million adults – said if they were to visit an independent financial adviser it would be to receive impartial advice. The next most important reason was to save money on a financial transaction and this was chosen by 12%, around 5.3 million people.

Access to a wider range of financial products than would otherwise be available was chosen by 9% while 7% picked access to better quality research.

Defaqto sales and marketing director Neil Morgan said: "It is a real vote of confidence in IFAs that they are valued for their ability to provide impartial advice ahead of other factors such as saving money. It proves that consumers are getting the message that independent advice is valuable on its own."


"However it is still the case that millions of consumers still do not believe independent advice is appropriate for them and this is a market that IFAs should be trying to reach."

While the research also shows that 46% of adults – more than 21.4 million people – do not want or believe they would ever need financial advice, there is a growing demand for advice with some 6.2 million people planning to visit IFAs over the next 12 months.

More than 2.1 million have paid a fee for independent financial advice over the last two years while another 7.6 million have seen an IFA but not paid directly for the advice.

Greece comes second for clean beaches

The Hellenic Society for the Protection of Nature (HSPN), Greece's National Coordinator of the international “Blue Flag” Programme, and Alpha Bank, Programme Sponsor for Greece, recently announced this year’s Blue Flags awarded to Greek beaches and marinas. With a total of 404 Greek beaches each winning a Blue Flag this year, compared to 383 in 2005, Greece ranks second among the 40 countries rated, a result that represents a major improvement from last year.

Around the globe, 2549 beaches in total were awarded a Blue Flag: this means that in 2006 one out of every six Blue Flags will fly in Greece. Greece does, however, lag significantly behind in the number of marinas to win the same distinction, with only 5 marinas out of a global total of 638 being awarded a Blue Flag.

The “Blue Flag” Programme

The “Blue Flag“ is an international quality symbol, arguably the best-known eco-label in the world, and has been awarded since 1987 to beaches and marinas that meet environmental, management and safety guidelines. For a beach to win a Blue Flag, it must comply with 29 strict criteria, including cleanliness, organisation and services, provision of information, the safety of swimmers and visitors, and the protection of the environment of the beach and of the coastal area. Hence, despite their clear bathing waters, many Greek beaches have failed to win a Blue Flag this year due to falling down in other areas. For marinas, there are 22 corresponding criteria.

Even if a beach or a marina wins the Blue Flag once, it may keep it only for the season for which it has been awarded, and has to prove again that it is worthy of the Blue Flag for the following year. Throughout the summer period, HNPS and FEE inspectors check the compliance with the Programme criteria and identify problems and omissions which may lead to the Blue Flag being temporarily lowered or even removed altogether. The evaluations of inspectors are taken seriously into consideration by the National Jury in its evaluation of beaches and marinas applying for a Blue Flag.

Big foreign travel operators put special emphasis on the existence of “Blue Flag” when selecting the destinations which they will propose to their clients, and insist not only on good service levels but also on the protection of the environment. Thus, Greece's high number of "Blue Flag" beaches bodes well for its tourism industry.

Programme Criteria for beaches

Cleanliness of sea and coast

Clear bathing waters, confirmed by laboratory analyses every two weeks during the swimming season
No discharge of industrial effluents and urban sewage without proper treatment
Adequate waste bins, which must be emptied regularly
Periodic cleaning of the beach from litter, cigarette butts etc.
Beach organisation and safety of visitors

Constant provision to the public of information on bathing water quality
Plans for addressing a potential pollution accident, with immediate notification of the public
Ban on driving vehicles and mopeds on the beach
Ban on free camping
Adequate sanitary facilities with controlled sewerage systems
Trained lifesavers on duty or direct access to emergency phone lifesaving gear and first aid supplies
Provisions for people with disabilities
Protection of nature and environmental awareness

Printed information and instructions on the rules of conduct on the beach and in coastal region areas with sensitive natural environment, flora and fauna
Organisation of events that promote actively the natural environment of the coast and the need for its protection
The 40 participating countries in the Blue Flag programme this year came predominantly from Europe but Turkey, Morocco, South Africa, New Zealand and Canada also took part. The country to pip Greece to the post with 480 Blue Flag beaches and 82 Blue Flag marinas was Spain. For the complete 2006 Blue Flag listings, please visit www.blueflag.org/blueflag

Airport money dumping stimulates a £4bn splurge

Britons have spent £4 billion in the last five years on unplanned purchases at airports according to Halifax Travel Insurance – £817 million of which was spent merely to use up left over local currency. Halifax Travel Insurance has termed this phenomenon ‘money dumping’ - purchasing items at airports to use up surplus local currency.

According to Halifax Travel Insurance’s research the average British holidaymaker has ‘dumped’ £48 at airports in the last five years. But 314,000 British adults ‘dumped’ over £1,000 and 46,000 ‘dumped’ a staggering £2,500.

Contrary to the stereotype that women are the biggest spenders men are the worst offenders when it comes to money dumping. Over the last five years men have 'dumped' on average 65% more foreign currency at airports than women, spending £61 versus £37. Men are most likely to spend left over currency on alcohol with women preferring to invest in perfume.

The research also indicates that the trend is set to continue estimating that over £163 million worth of foreign currency will be dumped by British holidaymakers at airports over the next year.


Whether money dumping is attributable to boredom whilst waiting for flights, or a tendency to be more frivolous with money on holiday, spending in airports accounts for a significant amount. Once they’ve used up their surplus local currency in airports British holidaymakers continue to spend billions more on credit cards and travellers’ cheques – a further £3.2 billion more over the last five years.

Taking into account 'dumped' currency and all unplanned purchases whether on credit cards or travellers cheques the average British holidaymaker spent £182.77 in airports at the end of their vacations over the past five years. That's an average of £36 pounds wasted by every holidaymaker each year.

Again, men were the biggest spenders spending on average £223 – 25% more than the average amount spent by women. It is predicted that British holidaymakers will spend £816 million in airports at the end of vacations over the next year.

Housing market in ‘delicate balance’

A further asking price rise of 0.3% in July reflects growing seller confidence, thereby creating upward pressure on house prices in England and Wales. Furthermore Greater London led the way as July’s prices jumped by 2.3%, shrugging off a weak performance in Q2.

"But can the market take it?" asks Doug Shephard, business development director for Home.co.uk.

Affordability constraints have led to "a delicate balance in a highly price sensitive market," reveals the latest Asking Price Index report from Home.co.uk.

According to the report, "High asking prices around September 2004 proved to be out of reach for many buyers," causing a, "40% reduction in the number of property transactions over the months that followed." To get the market moving again in 2005, sellers had to cut their prices. Subsequently, even small rises in asking prices have caused a slow-down in property sales.

"Many sellers are having to moderate their expectations to achieve a sale within a reasonable time-frame," commented Doug Shephard.

The report gives an insight into asking and sale price trends in Greater London, from the height of the boom in 2004 to the present. Due to the market’s extraordinary, upward momentum, sale prices registered in July 2004 were only around 80% of the value of asking prices. Over the last two years, the sale price to asking price ratio steadily increased to around 93% by May 2006, closing the gap between sellers’ aspirations and buyer demand.

Throughout this period, as asking prices became more approachable, buyers returned to the market, slowly pushing sale prices upwards. Such a convergence of asking and sale prices signifies an end to the speculative, selling practices that stalled the market in late 2004/5 and a return to more balanced market conditions.

Looking to the rest of the country, the report shows East Anglia and the North to be the worst performers of England’s nine regions and seem in no fit shape for price rises in the near future. Over the last twelve months, their prices have slid by 6.0% and 4.1% respectively. The Yorkshire and Humberside region is the only one in England and Wales to show an overall asking price increase (2.2%) since July 2005. Meanwhile, Scotland heads for the heights with an astonishing, meteoric rise of 16.1% over the same period.

Looming over the current, price sensitive trends in England and Wales is the spectre of higher interest rates. The Home.co.uk report points to changes in the supply of credit as the chief determining factor governing future house prices. Interest rate hikes in the US and the Eurozone have already occurred but, so far, their bark has been worse than their bite for UK borrowers with the Bank of England, as yet, refusing to follow suit even with inflation meters moving into the red.

Perhaps the greatest pressure on the supply of credit will come from the Bank of Japan. After a five year, global lending spree, aimed at lifting their beleaguered economy off the deflation ropes, the BoJ has raised their rates from zero. As Japan is the world’s biggest creditor nation and the second largest economy, the knock on effects for a heavily indebted UK are unlikely to go unnoticed.

Young expect longer retirement with less saving

Today's twenty-andthirty-somethings will live longer than previous generations. But if they don't change their saving habits, they risk becoming the live fast, die poor generation, minister for pensions reform James Purnell has said.

In these times young people are acting as if they expect to be able to fund a longer and longer retirement with less and less saving, the minister believes.

Speaking at an Institute of Public Policy Research event, Mr Purnell said that in just five years, since 2000, the proportion of 20-29 year olds contributing to a private pension has fallen from one in three to one in four. In contrast, figures for their parents' generation remained unchanged over the same period.

Mr Purnell said: "It is striking how fast time spent in retirement is lengthening. In 1950, the average retirement lasted about ten years. Today it's around twenty. In 2050, if we didn't increase the State Pension Age, it would be around twenty-five years."

The Pensions Commission estimated that 3.7 million people aged 26-35 are either under-saving, or not saving at all. Mr Purnell told the audience that the government is determined to change this.

"We believe that our reforms make it easier for people to save. Auto-enrolment will tackle the inertia which can stop people saving. Personal accounts should also deliver an improved return on someone's savings," he said.

"A median earner saving into a personal account from age 25 should see the rate of return on their savings roughly doubled as a result of our reforms. It is important that we communicate the message that we are making it easier for people to save, and that it is worth them saving under our reforms. The reforms will help us to create a culture where people start saving earlier and realise that they can combine it with spending for today."

According to government figures:

A person saving around £10 per week from age 22, with constant lifetime earnings of £19,000, could expect to retire at 68 with a pension fund worth around £69,000 in today's earnings terms.
If they delayed starting to save until age 30, their pension pot would reduce to £55,000 - and if they delayed until age 40, it would go down to £38,000.

The pros and cons of buying new build homes


With over 160,000 new homes being built across the UK every year there is an enormous amount of choice when it comes to buying new.

Many people will only buy new, claims New Build Inspections, and return to buy another new home despite the problems of getting building snags fixed.

A short guide from the firm outlines the advantages and disadvantages of buying a new build home and helps to explain why some people love new homes and some people detest them.

Advantages

New homes are Energy Efficient New homes are well insulated and include double-glazing as standard making them cheaper to run than older homes; they even come with an energy rating certificate. However, watch out for excessive use of expensive-to-run halogen lights and rooms that receive little or no natural light requiring lights to be on throughout the day.

A Blank Canvas You get to choose almost everything from the colour of the carpet to the type of worktop in the kitchen, but be warned you will be stuck with magnolia walls for the first two years while the property settles and dries out.

Stress Free Move The house builders have perfected the moving process and with no property chain the experience should be hassle free. For those opting for part-exchange deals there is even less to worry about.

Great Deals The housing developers know how to sell new homes and come up with some great offers. Incentives include: stamp duty paid, cash back, flooring throughout, landscaping and even free cars!

Secure and Safe New homes are safer and more secure than older homes. Fire safety is helped by the use of smoke alarms, fire doors, and fire retardant materials. New homes often include security locks, burglar alarms and security lighting as standard.

10-year Warranty Most new homes come with a 10-year warranty by Zurich Municipal, the Premier Guarantee or the NHBC. These do not guarantee that your home will be free from snagging defects and are primarily insurance schemes for the developer and not the home owner, but they do provide useful cover and it is not advisable to buy a new home without one.

Disadvantages

Small Size Small room sizes and a lack of storage space is often cited as the most common complaint about new build homes. The current trend of building three storey homes that eat into useful loft storage is making the problem worse.

Plasterboard Walls These don't support much weight and do little to prevent the transmission of sound throughout the property. Of course, many re-sales are just the same.

Parking In addition to building three storey houses with smaller room sizes, the developers maximise the number of units on a piece of land by reducing the number of driveways and replacing them with communal parking areas and shared drives. This can lead to disputes with neighbours over parking.

Snagging New homes are often riddled with defects, or snags as they are known in the trade. This is a major source of disappointment and frustration for homebuyers because most don’t expect any snags and it can take real determination to get the developers back to carry out the necessary remedial work.

Hidden Costs New build buyers often wrongly assume that moving into a new home is cheaper than a second-hand home. As well as the obvious costs for landscaping, curtains and flooring, there are also some less obvious costs that should be factored in. These include the cost of a snagging inspection and the fixtures and fittings that successive owners in a second-hand home will have installed, such as coat hooks, towel rails and door stops.

Gardens New build gardens often comprise of little more than compacted sub-soil. If you are lucky this will be covered with, at best, poorly laid turf. As well as making it very difficult for plants to thrive this often causes major problems with drainage and turf frequently dies before the new owner has even moved in.

Further information is available from www.newbuildinspections.com

68% of Brits want to buy a property abroad

Fed up of the UK climate and lifestyle 68% of Brits would like to buy property abroad, according to new independent research from HIFX, the currency experts. The study found that Britons rate overseas weather and lifestyles as more important than effective investment or making a profit when they pour their cash into properties abroad.

HIFX’s research found that almost two thirds of Brits (62%) see the main benefit of buying a property abroad as the chance to escape the cold and rainy UK weather. Half (50%) think it would be good to escape their stressful UK lifestyle of long working hours and high taxes and over a quarter (27%) would like to eventually emigrate and live abroad.

According to 2005 Office of National Statistics government figures the number of Britons owning second homes abroad now stands at 257,000. However, HIFX’s research shows that a further 29 million Brits would like to buy a property abroad and 11 million could actually own one within the next five years.

More concerned with lifestyle than investment

Surprisingly, desires to make a good investment or long term profit are low down on the list of priorities. People are three times more concerned about escaping the UK weather than making long term profit. However, worryingly one in four property buyers are also either unaware or unconcerned about fluctuating exchange rates and how this could increase the final cost of their property.

Spain remains our top get away destination with 46% of prospective buyers aiming to buy there. However, far flung destinations such as Australia, Canada and New Zealand are also increasing in popularity. Our favoured type of property to buy would be a villa by the sea (49%), followed by a house in the countryside (19%); just 5% of buyers would consider an apartment in a city, including people wishing to emigrate suggesting that most Brits want their new home to be a complete escape from busy UK life.

Mark Bodega, marketing director of HIFX comments: “There has been a shift from a second home being regarded as a luxury to it being something attainable by most people. In 1995, the average price paid for a second home overseas was 65% of the average UK property price. By 2005 it had fallen to 37% reflecting in part steeper house price inflation in the UK, but also the fact that second homes had become more of a mass market aspiration”.

Bodega continues: “The impact of growing prosperity, cheaper flights and the low cost of borrowing – even lower in the eurozone than in the UK – mean the trend for buying property abroad is expected to accelerate”.

HIFX produce monthly Global Hot Spots reports detailing the new up and coming locations for Brits to buy property abroad. This month’s report showed that the traditional locations such as Spain and France are facing tougher competition from new Hot Spots such as Bulgaria and Cape Verde.

Research was conducted by YouGov on behalf of HIFX through an online survey of 2458 adults over the age of 18 between 28th April and 2nd May 2006.

One first step to 4000 homes

The first step towards a fast-track project to deliver quality affordable homes in Greater London was taken in Shoreditch last week when English Partnerships joined Planning Minister Yvette Cooper in marking a start on site at Adelaide Wharf in Shoreditch.

Adelaide Wharf is a mixed use development including 147 homes, of which more than half will be affordable homes, including a significant proportion dedicated for Key Workers.

The scheme is part of the London-Wide Initiative (LWI) launched by English Partnerships as a pilot to fast-track more quality affordable homes in Greater London.

The pilot scheme, based on 15 English Partnerships owned sites, will deliver up to 4,000 homes over the next five years of which around 1,500 will be for sale at discounted prices or homes for sale for Key Workers and First Time Buyers.

Adelaide Wharf is the first of these schemes and is due to be completed in the summer of 2007.

Comprising 74 key worker and affordable homes, and 73 private homes, with no visible difference between tenures, Adelaide Wharf will be a high quality, extremely well thought out and sustainable development, 30% of which will be three and four bedroomed family homes split across all tenures.

The development will also include 700 sq m of affordable workspace that will be assigned to a community run regeneration agency.

The developer, First Base will utilise MMC (modern methods of construction) throughout and sustainable products in the manufacturing process to deliver a development that is high quality and good value for money. Adelaide Wharf is expected to achieve an EcoHomes Excellent and Lifetime Homes accreditation.

One first step to 4000 homes

The first step towards a fast-track project to deliver quality affordable homes in Greater London was taken in Shoreditch last week when English Partnerships joined Planning Minister Yvette Cooper in marking a start on site at Adelaide Wharf in Shoreditch.

Adelaide Wharf is a mixed use development including 147 homes, of which more than half will be affordable homes, including a significant proportion dedicated for Key Workers.

The scheme is part of the London-Wide Initiative (LWI) launched by English Partnerships as a pilot to fast-track more quality affordable homes in Greater London.

The pilot scheme, based on 15 English Partnerships owned sites, will deliver up to 4,000 homes over the next five years of which around 1,500 will be for sale at discounted prices or homes for sale for Key Workers and First Time Buyers.

Adelaide Wharf is the first of these schemes and is due to be completed in the summer of 2007.

Comprising 74 key worker and affordable homes, and 73 private homes, with no visible difference between tenures, Adelaide Wharf will be a high quality, extremely well thought out and sustainable development, 30% of which will be three and four bedroomed family homes split across all tenures.

The development will also include 700 sq m of affordable workspace that will be assigned to a community run regeneration agency.

The developer, First Base will utilise MMC (modern methods of construction) throughout and sustainable products in the manufacturing process to deliver a development that is high quality and good value for money. Adelaide Wharf is expected to achieve an EcoHomes Excellent and Lifetime Homes accreditation.

Get ready for the holiday money card sting

Nationwide Building Society estimates that holidaymakers will be charged over £535 million in foreign usage fees by their credit or debit card provider this year.

Whilst the Nationwide itself doesn't apply a so-called foreign currency loading fee when people make withdrawals/purchases abroad, other providers do.

And it could be as much as 5.25% for cash withdrawals and a minimum 2.65% for purchases, says a new report 'Avoiding Financial Pitfalls Abroad' from the bank.

Dynamic Currency Conversion

While abroad, the bank urges holidaymakers not to be caught out by Dynamic Currency Conversion - a currency conversion 'service' which can result in consumers paying extra on purchases. VISA guidelines state that a UK cardholder should have the option to pay a bill in either the currency of the country they are visiting or in pounds sterling.

Nationwide recommends its cardholders always opt to pay for purchases in the local currency of the country they are visiting. This ensures that they get the best exchange rate and no commission charges.

Travel Money

Research shows that 57% of holidaymakers use local currency for holiday spending. Before buying foreign currency, Nationwide recommends that holidaymakers check the exchange rate and avoid paying extra by shopping around for a commission free travel money service.

Insurance

Meanwhile, in the last 12 months, 13% of travellers ventured abroad without arranging the necessary cover. If booking a holiday independently, or through a travel agent, it is important to take out adequate travel insurance and shop around for a good deal. Neglecting to do so can result in huge medical bills and financial loss should anything go wrong while away.

Stuart Bernau, Nationwide's executive director, said: "Everyone looks forward to their holidays but, amidst all the excitement, nobody wants to find themselves taking unnecessary risks or incurring unnecessary charges."

"Quite frankly, some organisations are making excessive profits out of their customers through the cost of foreign currency, travel insurance and - most of all - card use abroad. To make matters worse, some of these costs are not exactly transparent."

How to avoid selling the family silver


Few people will have missed the news that Lord Linley and his sister Lady Sarah Chatto have been forced to sell precious jewellery belonging to their mother, Princess Margaret, to cover a £3 million inheritance tax bill.

This and other high-profile asset sales recently reported may lead people to think that inheritance tax is just a problem for the rich, but that is certainly not the case according to Anne Elliott, partner at Darlington law firm Latimer Hinks.

Astoundingly, one in three UK homeowners will have inheritance tax charged to their estates following their deaths. A recent survey for Scottish Widows showed that 8.2 million people have assets worth more than the current £285,000 threshold for Inheritance Tax. Although this is due to rise to £325,000 over the next four years, campaigners against the controversial tax are calling for its abolition. But, with the government expected to earn a massive £3.4 billion from inheritance tax this year, the Chancellor is unlikely to listen to these calls.

Anne Elliott said: "In Britain, because the value of houses has increased, ordinary families have been sucked into inheritance tax."

"It used to be a tax payable by the very wealthy but can now affect anybody. The good news, however, is that IHT is one of the most avoidable forms of taxes. Indeed, a good tax planning adviser will be able to ensure that clients eradicate, limit or at the very least defer their family’s exposure to IHT."

"If people take timely tax planning advice, particularly and specifically when writing a will, they can cash in on simple, but effective, ways of protecting their nearest and dearest from the ravages of IHT and the possibility of having to sell the family silver."

Anne’s advice on how to cut down on IHT bills include:

Make exempt lifetime gifts if you can afford to. These will reduce your estate on death. £3,000 a year can be gifted and if the exemption is not used one year it can be carried forward to the following year.
Make a will. If you die without a will there are strict rules as to who will inherit your estate.
Skip a generation in your will. If assets are left to the grandchildren rather than the children, Inheritance Tax can be avoided. A legacy can be tied up in a trust until the grandchildren reach a suitable age.
For a same sex couple consider entering into a civil partnership.
Leave assets – possibly a share of the main residence – into a trust on first death rather than directly to a spouse.
Consider taking out a life policy which will pay out when you die. The aim will be to have enough to pay any IHT bill, this must be put into trust to make sure the bill isn’t increased.
Take professional advice. The last Budget made IHT planning and trusts even more complex.

Interest rates held for 11th consecutive month


Mortgaged homeowners received a further period of respite today as the Bank of England’s Monetary Policy Committee held interest rates steady at 4.5% for another month today.

It was the 11th consecutive month the MPC had voted for no-change in the cost of borrowing.

The freeze on rates for this month was widely predicted by analysts although there are widely differing views between analysts about the timing and even the direction of the next move. Experts polled by Reuters last week predicted a range of ‘next move’ scenarios varying from upwards in August to a cut in November with some even expecting no change until 2008.

The MPC is currently two members short, with only seven debating interest rates, following the departure of Richard Lambert to the CBI and the sudden death of David Walton last month.

‘Caution’ over weakening property market


FDP Savills has seen ‘buoyant’ residential property markets in the first half of the year and now has an order book that remains stronger than last year.

However the property adviser cautioned that residential markets might not be as buoyant in the second half.

The caution came in the half-year trading update, which said that investment markets remained strong and the group was expected to "deliver full year results in line with our existing expectations".

"The first half has seen strong investment markets especially in the UK and in key European markets and this should ensure that commercial activity levels remain high in 2006," it said in the statement.

The commercial property investment market throughout the UK remained strong and the first half saw a continuing high level of transaction volumes. There is continued high demand for property from private and institutional buyers both in the UK and overseas.

Tenant demand in both London and the regional commercial markets is improving.

"Residential markets have been particularly buoyant in London and had a much stronger first half than was the case in 2005, although we do not expect this trend to continue into the second half," Savills said.

Housebuilders failing green responsibilities

A survey of planners has revealed that nearly half of all major housebuilders were rated as poor or very poor when it comes to understanding their environmental responsibilities, with a further 41% rated as moderate.

The survey carried out by the Royal Town Planning Institute in conjunction with Planning Magazine also revealed that 82% of planners who responded said conflict existed when they made suggestions to improve the scheme.

Just 11% of planners think developers are excellent or good.

The RTPI said it was clear from the comments received that without tough new measures developers, especially volume housebuilders, will not meet their responsibilities if it impacts on profits.

Poor design by housebuilders was also highlighted in the survey. One respondent said: "Nearly all of the big housing developers are guilty of just seeking to cram as many of their standard range of house types on all their sites regardless of their context or local environment."

"The designs of the houses put forward are usually bland and unimaginative and pastiche designs of old architectural styles with little attempt to explore new architectural design/ideas."

In almost 9 out of 10 cases planning applications were missing information that would allow planners to make a quick decision on the application. In requests for further information only 18% were rated as good or excellent with no resistance to the advice given to bring the application up to standard.

"What is clear from this survey is that planners and house builders need to improve their relationship," said RTPI president Clive Harridge. "Planners have a role to play in helping house builders to meet their design and environmental responsibilities."

Strong half year, but signs of fragility

UK home sales rose 12% in the first half of 2006 compared with the same period last year, according to estate agent group Your Move.

However the firm points out the market has been volatile, being affected by a number of one off external events including:

The timing of Easter, resulting in fewer normal viewing days in April
May was the rainiest month of many years
Stock market jitters, affecting consumer confidence
June’s transactions are down 11% on May, having been additionally affected by the World Cup. Sunday’s (25 June) England v Ecuador match resulted in a 38% drop in viewings that day compared with the average of the previous month’s Sundays.

New buyers registering are still increasing with a marked 24% increase in June over May, suggesting that viewing activity will increase again once the World Cup is over.

David Newnes, managing director of Your Move said: "The market has been undoubtedly strong this year, but has experienced volatility month on month due to a number of external factors including the weather, stock market downturns and the World Cup."

"The current campaign by the Conservative Party against Hips has also not helped the market in June as it is undermining confidence in the future health of the housing market."

"Hips may not be a perfect solution to the inefficiencies in the housing market, but it is an important step in the right direction. It will help reduce both buyer uncertainty and failed transactions for the benefit of all parties involved in the house buying process."

"After an initial transitional phase there is no doubt that the health of the UK housing market will be better as a result of the introduction of Hips."

"It is important that the Bank of England does not upset the apple cart with an interest rate rise. The market has been strong, but it is also fragile! Interest rate rise and continual scaremongering over Hips could tip the balance and reverse the recovery we have enjoyed so far this year."

Regional

The southern regions have been consistently performing very well, with strong levels of buyer activity and transactions. However, this has resulted in a shortage in supply which is likely to result in less growth and transactions over the coming months. "Sustained demand from new buyers will undoubtedly put upward pressure on house prices for the rest of the year," added David Newnes.

London, a victim of its own success

Viewings per property in London are the highest in the nation, but this is due to a critical shortage of homes in the capital, rather than an improvement in the total of number of viewings, said the firm.

This shortage is a direct result of a very strong market over last few months, with a rise in new buyers and transactions. The current strong markets in the South East and East Anglia are also likely to see a shortage in supply in the upcoming months as buyers race out to buy homes in a tightening market.

Mortgage approval rate bounces back

Following last week's release of MBBG (Major British Banking Groups) net lending figures for May, further information now available from the BBA (British Bankers' Association) shows that gross lending to individuals in May - at £18.234 billion - was a record. And 18% higher than April's total of £15.500 billion, 27% higher than the £14.339 billion seen in May 2005.

Seasonally adjusted net mortgage lending rose by £5.731 billion, compared with £5.065 billion in April. The strong increase in May was much higher than the average of +£5.140 billion over the previous six months whilst the annual growth rate is now around 13%.

Compared to the same month a year earlier, May's loan approvals for house purchase were 20% higher by number, 33% higher by value. At 40% of all approvals, these were at their highest share since July 2002. Remortgaging approvals were 8% higher by number and 28% higher by value; however approvals for equity withdrawal were 7% lower by number and 1% lower by value.

There were 201,506 mortgage approvals (for all purposes) in May, with a total value of £21.2 billion. Comparisons with April are distorted however, as approvals data are related to the number of working days in a month and there were 21 working days in May and only 18 in April. That said, the number of approvals was still 8% higher than in May 2005. Meanwhile, the average approval for house purchase fell in May to £139,300, though still some 11% higher than a year earlier.

Elsewhere, new borrowing on credit cards totalled £7.682 billion in May. This was 16% higher than the previous month, but repayments outstripped spending and after seasonal adjustment, net lending fell by £251 million, having been flat on average in recent months.

New lending on personal loans and overdrafts in May was stronger than of late (overdrafts rising as April's end-month payments went through in May) and after seasonal adjustment, net lending showed a rise by £699 million, compared with a recent monthly average of +£294 million.

The BBA's director of statistics David Dooks said: "Although numbers of approvals are still well below the levels of early 2004, the record level of gross lending and stronger net lending in May shows mortgage market activity to be healthy."

Warm weather brought homebuyers out

Warm weather brought homebuyers out of the woodwork in May, according to Moneyextra, though they warn this is unlikely to translate to a boom in the home loans market as higher interest rates and Home Inspection Packs loom.

Following a relatively muted first four months of the year the UK housing market picked up in May as the warmer weather stimulated house hunting.

May saw a surge in mortgage activity, with the total value of home loans arranged by AWD Moneyextra growing by more than 27% on the previous month.

The average value of mortgages completed by AWD Moneyexta meanwhile grew by more than 7% to £150,556, compared with an average of £140,898 for the five months of the year to May 2006 and £126,908 for the same period in 2005.

However, many have described the housing market's performance as a spring blip rather than a general upswing as interest rates are forecast to rise and homeowners look to sell before the introduction of Hips in a years time.

Robin Amlot of Moneyextra.com said: "Any sign that a relative glut of property is coming onto the housing market, together with the outlook for higher interest rates in the near future, is likely to restrain any exuberance in the housing market."

Nevertheless, the average mortgage comparison carried on Moneyextra.com in May was £135,109, an increase of 3.79% on 2005 and up 16.8% on March 2004.

Furthermore, the average property value searched for on Moneyextra.com rose by 2.71% over the last year to £215,705 and by 9.57% on May 2004.