Protect your home from ghoulish pranksters

Two and half times more malicious damage claims than normal arrive at insurers after Halloween, as pranksters get up to some pretty ghoulish over-indulgence.

And tonight it’s Halloween again so trick-or-treaters will be putting the frighteners on the nation and wreaking havoc on our homes, according research from Norwich Union Insurance that shows Halloween is the worst day of the year for malicious damage claims to property.

Insurers expect an increase of 150% in property claims with the average cost of that damage a shocking £900 treat from the pranksters. It’s also one of the worst days of the year for damage to cars, with 20% more claims than a normal day. The average cost is £1,200 per incident.

More than one in ten (13%) people claim their home has been damaged by high spirited trick-or-treaters. The single biggest reported culprit of damage to homes is caused by trick-or-treaters throwing eggs and flour which is responsible for 80% of damage. However, more damaging and costly examples of tricks highlighted by the research include switching off electricity supply to homes, damage to gardens and hedges and theft of items from outside peoples’ homes.

It comes as no surprise that 92% of those surveyed by Norwich Union admit that Halloween makes them feel anxious, and 65% dread a knock at the door on Halloween. But however frightening the pranksters can appear, pretending to not be at home is not necessarily the best choice for homeowners.

Nearly three quarters of respondents divulged that they have pretended not to be at home when trick-or-treaters have knocked at their door. The most popular tactic is to sit at the back of their home to make it look like no-one is in, followed by turning off the lights and television and ignoring knocks or rings at the door.

Other key survey findings:

People in the Midlands are least likely to open the door to trick-or-treaters, closely followed by Wales and London

Northern Ireland is revealed as the place where Halloween spirits are highest.
People living there are the most likely to open their door to trick-or-treaters

Wales tops the list as the region where homes are most likely to be harmed by trick-or-treaters

Regionally Scotland comes top as the place where homes are least likely to be damaged by trick-or-treaters.

Jason Harris, senior claims manager at Norwich Union, said: “Our research shows that trick-or-treaters are the biggest cause of Halloween nerves, and only a small number of those surveyed attributed their fears to ghosts.”

“With a three fold increase in malicious damage claims on 31 October, Halloween is the worst day of the year for vandalism targeting your home.

“While the vast majority of trick-or-treaters are just in high spirits, it’s worth taking a few simple steps such as putting your vehicle in the garage and making sure your doors are secured.”

Norwich Union Insurance top tips for warding off trick-or-treaters:

Consider stocking up on treats - this could mean the difference between being a victim of a trick and averting trouble from your home

If you are a parent, volunteer to take turns with other parents to accompany children when they are trick-or-treating

Put the car in the garage or tucked out of the way for the night

Move any garden ornaments, potted plants or bikes from the front or side of your house and out of sight.

Malicious damage is covered as standard in most home insurance policies, but it’s worth checking you have adequate buildings and contents cover.

Liverpool’s Edge Lane project starts

Work is set to begin today on the next stage of the Edge Lane Project; the multi-million pound scheme providing an improved environment, new housing and jobs for the local community and an improved and much safer highway.

The next phase of the project will involve the demolition of the derelict and boarded up properties acquired in the Edge Lane West area. The demolitions will signal the long-awaited start of the regeneration of the Edge Lane West area and concern properties already in public ownership which are not affected by the outcome of the recent High Court challenge.

The activity will also pave the way for new homes to be built as part of the overarching regeneration plans for the area, replacing the run down properties with modern, well-designed attractive accommodation.

The Edge Lane West highways element of the Edge Lane Project includes major road improvements to remove the traffic bottleneck at St. Cyprian's Church by realigning the road, widening it to dual carriageway and introducing a central reservation, creating dedicated right turns, providing better pedestrian crossing facilities and improved access to Kensington Infant and Junior Schools and the Life Bank (Sure Start) Centre.

The Challenge to the Compulsory Purchase Order (CPO), recently upheld in the High Court on a technical matter, is not linked to this demolition activity: the demolitions cover properties already in public ownership, gained by agreement.

Overall, more than 265 of the 370 properties ear-marked for demolition in Edge Lane West are already in public ownership with 75% of the remainder in active negotiation. LLDC hopes that the start of the demolitions will reassure the community that regeneration plans in the area are being progressed.

North-south first-time-buyer stamp duty divide


An article by the Council of Mortgage Lenders today reveals huge regional differences in the payment of stamp duty by first-time buyers.

In northern England, four out of five of first-time buyers (82%) escape paying the tax on their first home, but in London this figure is just one in 33 (3%).

The news is not much better for first-time buyers hoping to get on to the property ladder in the south east of England, where only 18% avoid paying stamp duty. But in the north west and in Yorkshire and Humberside, more than two thirds (70%) of first-time buyers avoid being caught by the tax.

It is a similar story for the higher rates of stamp duty. In the north west and Yorkshire and Humberside, the proportion of first-time buyers who currently pay more than £250,000 for their first home - and are therefore liable for to pay duty at 3% - is less than 1%. But in London this figure is 25%.

CML director general Michael Coogan said: "It is shocking to see the huge regional differences in first-time buyers' liability for stamp duty. This raises important questions for policy makers in government. While there is a stated desire to help more people across the UK into the housing market, though schemes such as shared equity, the high entry costs of buying a home will undoubtedly make many potential first-time buyers in the south think twice.”

"London stands out as the place where the vast majority of first-time buyers pay significant levels of stamp duty. The amount of tax first-time buyers pay is bound to be a hot topic at the next election.”

“We believe that it is more urgent than ever for the government to reform the current stamp duty structure to remove the clear distortions and disincentive it creates in the housing market, and reduce the burden faced by many first-time buyers."

CML says that stamp duty is not only increasing the tax burden on home-buyers, it is distorting the housing market and are calling for reforms they say would address both issues.

Ending the practice of levying stamp duty at the highest marginal rate on the whole price of the property would remove market distortion. This could be achieved with no loss of revenue to the government, if necessary.

Home-owners could then be protected from a growing tax burden by indexing stamp duty in line with house price inflation.

Property set for fair growth next year

House price inflation will slow next year, but average UK property prices will still grow by 6% during 2007, according to worldwide property company Knight Frank.

The research estimates growth for this year to wind up at 9% “The housing market, which staged an unexpectedly strong recovery in 2006, is expected to remain in robust health throughout 2007,” said Liam Bailey, head of Knight Frank residential research.

Prime property prices will continue to increase in 2007, with the London boom spreading across the whole South West.

Liam Bailey said: "The boom seen in central London in 2006, with prices rising by up to 25% in some micro-locations, will spread with equity-rich London and Home Counties buyers moving into prime regional markets and competing with local buyers."

Meanwhile Scotland and Northern Ireland will experience the tail end of the recent housing market boom, with prices expected to grow by 9% and 10% respectively.

The forecasts are based on the assumption that the base rate will rise to 5% this year and fall to 4.75% by the end of 2007.

Housing markets throughout Europe should also experience solid growth, the report said, despite concerns about increasing affordability issues, mounting household debt and the sustainability of current growth in a number of countries.

Liam Bailey said "With no obvious major international shocks visible at this point in time and a continuing broadly benign economic and interest rate environment likely, we see both buyer confidence and appetite remaining firm.”

However, while emerging markets would experience the strongest growth, some markets such as parts of southern Spain and Dubai required caution, Liam Bailey added.

House hunters slam French estate agents

A recent poll carried out by Languedoc property specialist website www.creme-de-languedoc.com suggests that foreign buyers in France think French estate agents are over-paid and provide poor levels of service. However, confidence in French property, particularly in the Languedoc area, is still very high.

Carried out over three months, the www.creme-de-languedoc.com Property Buyers Poll reveals some controversial results. The poll was completed by over 500 foreign home owners, all of whom had bought property in the Languedoc region of southern France.

"Daylight robbery"

By a margin of 3-to-1, respondents felt that 'French estate agent commissions are daylight robbery'. So in terms of value for money, buyers felt agents were hugely over-paid. With UK commission rates around 1.5 per cent, the standard 5-10 per cent charged by French estate agents was resented.

"We paid 7 per cent to our agent - and for that, we got poorly written property details with awful photographs. I just don't understand why their commissions are so high. Maybe that's why there are so many of them!" - Steve Craig

A small majority also feared that French estate agents inflate prices for foreign buyers.

"There are many sharks in the industry who will inflate prices exorbitantly when they see you are a foreigner, and who try to pull all kinds of dirty tricks to seal a deal. Go on recommendation if possible." - Sharon Black

However, investment company My French House told www.assetz.co.uk that they believe such an attitude is outdated and that French estates view Brits as "canny and shrewd" investors who will not be duped into making whimsical decisions.

A spokesman for My French House told Assetz, "The British have been buying in France for quite some time now and they know exactly how things work and what to do and what not to do."

"Take it or leave it" attitude

The quality of service offered by French estate agents was called into question, with 50 per cent of respondents feeling agents 'didn't listen to our brief - they just showed us what they wanted to sell'.

"The estate agents almost never called us with house listings that fit our requirements." - Don Weedman

"French agents have a ' take it or leave it' attitude." - Barry Lester

Certain British estate agents operating in France were also criticised for taking too much while adding little to the process.

"I know of Brits being done and overpaying so-called British "property finders" who overcharge unnecessary services" - Ruth Negri

A buoyant market

By a 3-to-1 margin, respondents felt that 'there are bargains to be had - if you look hard enough'. This is in line with recent official figures released by FNAIM, the French association of estate agents, that suggest prices for property in Languedoc are still low compared to Provence, and still growing at a much higher rate.

The caveat of 'if you look hard enough' was further explained by the fact that, again by a 3-to-1 margin, respondents felt that 'I found properties shown to me by estate agents to be pretty shoddy'. The low quality of property in the area is probably the result of decades of under-investment, caused by once-low prices and a flat market - before the market started to accelerate in the past 5 years. Clearly, then, good quality properties are still relatively hard to find, but once discovered, offer excellent value for money and healthy investment potential.

This finding is further backed up by the fact that, by a huge margin of 5-to-1, respondents felt that property in the Languedoc region 'is still a good investment - prices are rising well.'

Most found the French property buying process easy to understand, and a small majority felt it was worth appointing 'your own notaire or English legal advisor when buying property'.

Overall, despite reservations about estate agent commissions and low levels of service, respondents seem very optimistic about the value that property in France (and in Languedoc in particular) offers, with the caveat that finding the elusive 'bargain' requires some effort and persistence on the part of the property hunter.

Private renting is growing in popularity

Private renting is growing in popularity according the Department for Communities and Local Government: From 1993 to 2005, the proportion of household reference persons aged 25 to 29 who were private renters rose from 19% to 34%.

Over the same period the proportion that were owner occupiers fell from 60% to 50%, the Housing in England 2004-05 report published this week said.

The type of tenure varies considerably by age. In 2004-05, 51% of household reference persons (HRPs) aged 16-24 were private renters and 30% were social renters.

Seventy-nine percent of HRPs aged 45-64 were owner occupiers and 77% of HRPs aged over 65 owned their own home outright, while 23% were social renters.

The annual survey of nearly 20,000 households was carried out for the DCLG by the National Centre for Social Research and provides key housing data on owner occupation and on the social and private rented sectors.

Other snippets from the report:

In 2004-05, there were 14.6 million (71%) owner-occupying households, 3.7m (18%) social renters and 2.4m (12%) private renters.
The mix of tenures in London differs noticeably from the rest of England. Owner occupation in London was only 58% (England 71%), social renting 25% (England 18%) and private renting 17% (England 12%).
Home ownership:

Fifty-seven percent of homeowners were buying their home with a mortgage.
43% owned their home outright, of whom 12% had bought their home outright at the outset
28% had bought with a mortgage but had since paid it off; and
3% had acquired their home through other means (e.g. inheritance).
First-time buyers:

Of the 5.5 million first-time owners, 1.1 million had purchased their home since 2001.
43% of recent FTBs were previously private renters
6% were previously social renters
33% were newly formed households and 17% were previously sitting tenants
70% of recent first-time buyers were under 35.
Recently moved households:

2.3 million households moved into private accommodation in the 12-month period prior to 2004-05.
419,000 of these (19% of the total) were newly-formed households - of whom:
210,000 moved into private renting, 91,000 into social renting and 119,000 into owner occupation.
Movers out of owner occupation:

Of existing households, an estimated 382 thousand reported having left owner-occupation in the three years prior to interview. Of these, about two-thirds moved to the private rented sector and one-third to the social sector.
The main reasons cited for having left home ownership were divorce or separation, other personal reasons and job-related reasons.
Second homes:

It is estimated there are 255,000 households with second homes in England,
34,000 with second homes in Wales or Scotland and,
193,000 with second homes outside GB.
Overseas, Spain is the most popular country with 34% of second homes, followed by France with 23%.

Allotments make a comeback

Once considered the preserve of granddads, allotments are now emerging as a modern way to improve health and well being, as more people recognise the value of fresh produce and fresh air.

Accessible for city dwellers and a hive of activity for communities, allotments are also attracting families keen to keep their children healthy and help the environment, according to Gardening Which?

Allotments are under threat in some areas from road schemes, developers and, in one particular case, plans for the 2012 Olympic Games. But often plot-holders and local communities have been successful in saving areas or reaching a workable compromise.

Local councils, with the support of the Allotment Regeneration Initiative (ARI), are working to improve allotments – Edinburgh has already opened new sites and Sheffield plans to.

Allotments are ideal places to grow many of the vegetables, herbs and fruit available in supermarkets; even exotic crops from across the world.

To get the best out of an allotment, Gardening Which? gives the low-down on what to look out for:

Fertile, well-worked soil is a real help - some sites are now organic
Convenient water, such as a handy water tank, as hose-pipes are not always permitted
Good security is an advantage as vandalism and theft can be a problem on some sites
Access for compost deliveries is helpful and some sites will organise this on behalf of members
Some sites have the benefits of a club hut, sheds for individual plots, and tarmac access roads
Julia Boulton, editor, Gardening Which?, said: “Wherever you live, allotments are a great way to grow your own vegetables, enjoy the great outdoors, and get families involved in gardening.”

“Interest in allotments is booming – not surprising when they only cost a few pounds a year so grab yourself a bargain while you can!”

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First-time nerve – or nerves?

More than ever first-time buyers are relying on their parents to help them onto the housing ladder, a survey suggests.

Climbing onto the property ladder can be as daunting as climbing Everest, said Skipton Building Society, and one in four people aged 20 to 35 were now counting on parental help to help with the deposit.

And in addition, more than one in 10 expect their parents to guarantee their mortgage, putting the parental home at risk.

Being financially independent is no longer an option for many potential first time buyers as almost 40% say they struggle to save and nearly a quarter say they fail to save anything at all. This means that when it comes to buying a house, they're having to look to their parents for help.

For those that have the nerve to ask for parental help or those that have been able to save for a deposit Skipton has designed a website that may calm first-time nerves – www.firsttimenerves.co.uk - to make sure they know what to look for, so they buy not just a house, but a home. The site includes tips on what to ask sellers and a series of checklists to take to a viewing to make sure nothing is missed.

The rise and rise of the townhouse

Townhouses are proving increasingly popular with home buyers looking to buy newly built homes, attracting young families who have ditched detached properties for a trendier, more affordable new style of home.

With the average price of a new detached home recorded as £307,875 in September, young families are turning to more affordable townhouses which offer a similar amount of internal space but are currently £63,000 less than the price of a detached home of similar size.

According to SmartNewHomes.com, townhouses have experienced the biggest growth over the last year and now make up 10% of the new homes mix – up 3% since the same time last year. However, prices remain competitive and in the current market, home buyers can purchase a new townhouse for less than they would have been expected to pay at the same time last year.

The townhouse is not only popular with buyers, it’s proving a hit with developers too, who are under constant pressure from the government to build high density developments, maximizing on space. With the majority of townhouses spread over three stories, developers are able to build up rather than out spreading the same amount of internal floor space you would find in a typical detached home over more floors.

David Bexon, managing director, SmartNewHomes.com said: “Townhouses offer the perfect solution for growing families, with bonus rooms and additional floors families can be more creative with the space, often choosing to convert the third floor into an additional bedroom, an office space or a playroom and have more en suites.”

“Detached homes are still in demand but they currently make up just 24% to the new homes mix with resulting prices that are pushing them out of the reach of young families.”

“While many new home buyers are turning to semi detached homes and townhouses as a more affordable option this continued fall in the number of detached homes needs to be addressed. government must revise its planning policy now to ensure that this property type does not become a minority purchase.”

“While the demand for townhouses has grown over the last year, so have the number of developments coming onto the market, enabling developers to maintain prices experienced at the same time last year.”

“Townhouses appeal to a wide range of home buyers from young families and first time buyers to retirees looking to downsize. With prices having remained relatively stable over the past year, now is a good time to buy as their increasing popularity will undoubtedly lead to steeper prices in 2007.”

Divorcees carry debt burden into retirement

The costs of divorce are notoriously high, but a new study by Alliance & Leicester shows how separation and divorce affect people’s financial health for many years to come.

Divorced people are far less comfortable with their debt than those who are separated and who have never married. The biggest contrast however is between the married couples who are still together and those who have divorced.

Divorced people owe just under £5,000 on average – (£4,984) each – not counting any mortgage. This is equivalent to over a quarter (28%) of their annual incomes.

Married people owe £5,245 between them – or £2,600 each. More importantly however, married couples enjoy a much higher incomes, so their debt is equivalent to less than a sixth (15.9%) of their annual income. Divorced people pay a higher proportion of their incomes servicing their debt than any other group. They also have lower incomes and overall their financial position is far less comfortable.

Divorcees nearer retirement

Divorcees tend to be older – 54 on average – and as such are nearer retirement than these other groups. Carrying a high debt burden at this late stage in working life leaves them much more vulnerable. Divorcees are also twice as likely to be unemployed than their married counterparts – 4% compared to 2%.

Chris Rhodes, managing director of Alliance & Leicester retail banking said: “Splitting up clearly gives rise to a lot of costs, including setting up a new home. This is reflected in the fact that the recently separated have the highest overall level of debt at £6,262.”

“However, over the years, divorced people’s finances do not seem to improve – showing how long-lived the effects of relationship breakdown can be.”

Divorcees have fewer assets

Nearly half (44%) of divorcees have no savings at all. This compares to just 27% of married couples and a national average of 32%. Those who class themselves as separated are even less likely to have savings, perhaps because they have more recently incurred the costs of setting up a new home.

The research shows however, that far from improving, their situation is likely to deteriorate over time. While the overall amount owed may fall slightly, divorcees are carrying this burden towards retirement.

They are also much less likely to have the financial security that comes from owning your own home. 82% of married couples own their own home, compared to just 61% of divorcees. Following divorce, it seems that a large proportion of divorcees never get back on the housing ladder. Indeed, divorcees are much more likely than any other group to live in social housing (24% compared to the national average 14%).

Chris Rhodes concluded: “Divorce is financially as well as emotionally costly. Our research shows how severe these financial effects are. The majority of divorcees in our sample are over 50. They have fewer assets in terms of savings or owning their own homes.”

“Being in poorer financial shape at this age than their married counterparts will have clear knock-on effects into retirement.”

Spain gets two months to fix land-grab law

The ongoing deep concern of property owners in Spain, especially those in the Valencia region, over the so-called ‘land grab’ law may be slightly eased as Brussels issues its second ultimatum to the country.

The European Union will take Spain to the European Court of Justice if does not take action to remedy the law, it has said. This time Brussels has given Madrid two months to fix the problem.

It is the second ultimatum in less than a year over the law that has forced hundreds of people with properties in Valencia to sell up all or part of their property or pay huge bills for services they say they do not need.

The law, which was introduced in 1994, allows developers to compulsorily purchase homes and re-designate for rural land for urban development.

Originally, it was designed to stop speculation by developers who would hold on to rural land until the price went up.

But, according outrageous and frightened property owners it has been manipulated by ruthless developers who simply ask local authorities to reclassify rural land as 'urban'.

Brussels agrees with the owners who, once the land is reclassified are forced to pay for amenities like roads, lighting, sewage or water supplies. If they cannot pay, and many are retired so can’t afford to, they are forced to sell up or give away part of their land to the developers in lieu of the amenities they didn’t want.

The EU said Valencia should be subject to the European norms of public markets, something with which the regional government disputes.

Changes to the law have been made following previous calls to correct the law but the end result is still against EU practices.

Whatever the result of the latest ultimatum many people have already lost their homes or land and some who have been affected are taking separate cases to the European Court of Human Rights, claiming their right to property have been broken.

Ever considered buying a holiday cave?

Well, strange as it may sound, "casas-cuevas" are already a very popular option with overseas buyers looking to purchase their first holiday property in Spain...

Cave homes date back to the 8th century when the Arab communities replicated their cave dwelling traditions in the provinces of southern Spain. Right up until the 1950s tens of thousands of native farming communities lived in these caves but with the advent of tourism in the early 1960s a mass exodus of the workforce to the lucrative coasts meant that many caves were simply abandoned.

Over the last decade, however, interest in these “casas-cuevas” has been strong from overseas buyers keen to purchase their first property in Spain. The province of Granada has the largest cave dwelling population in Europe and property developers have transformed hundreds of untouched or partly re-formed cave houses into modern holiday and second homes.

Going underground

Cave houses by virtue of their "construction" maintain a steady temperature of around 20 degrees centigrade all the year round. This natural air conditioning system is an attractive feature as temperatures can often reach 40 degrees in the summer months. All modern conveniences including electricity, plumbing and heating and even Jacuzzis and broadband are available in cave homes and regular ventilation ensures a damp free property.

As each cave home has been hand carved this creates a unique character for the property. Rooms tend to reflect the contours of the rock and the soft stone means that another room can be carved out as you need it so expansion is not a problem. But if you're not happy with the designs on offer, you could join the growing number of people commissioning specially trained architects to design and "build" a new cave home from scratch.

And for those people concerned about the environment, it's good news too. These dwellings can be considered to be ecologically sustainable or “green” as they have been dug out of the soft sandstone resulting in minimal impact on the local environment. There is limited need for or use of man-made products such as concrete, insulation fibres or plastics and the year round even temperatures and rock formed walls lend themselves to natural materials, such as wood, cane, cotton and linen to create an elegant, eco home.

Taking advantage of the natural situation of a cave home will result in less energy consumption and hence lower running costs. Council tax rates are approximately 75 euros (£51) per year and the Spanish government is also playing its part in encouraging cave home occupation by offering grants to contribute to the costs of installing renewable energy systems such as solar panels. Many local craftsmen are busy producing furniture to suit the cave dwellings and the prices enable anyone to have a designer home for the price of a designer room in the UK.

Cool cave hot spots

Within Granada there are three separate concentrations of cave houses, the historic Albaycin and Sacromonte neighborhoods of Granada City, Gaudix and Baza. The Albaycin and Sacromonte are adjacent hillside neighborhoods, both of which form part of a UNESCO World Heritage Site along with the Alhambra Palace. The cave dwelling population of the areas is rapidly increasing and some cave houses are extremely large, having ten or more rooms.

So, what makes a 21st century cave home a good investment? Christina Sanchez of 1 Casa comments, “Cave homes present the ideal opportunity for buyers to get onto the Spanish property ladder. Prices start from only 23,000 euros or £15,000 and with modernization and good styling can sell for up to 350,000 euros (£215,000) in some areas.”

Ever considered buying a holiday cave?

Well, strange as it may sound, "casas-cuevas" are already a very popular option with overseas buyers looking to purchase their first holiday property in Spain...

Cave homes date back to the 8th century when the Arab communities replicated their cave dwelling traditions in the provinces of southern Spain. Right up until the 1950s tens of thousands of native farming communities lived in these caves but with the advent of tourism in the early 1960s a mass exodus of the workforce to the lucrative coasts meant that many caves were simply abandoned.

Over the last decade, however, interest in these “casas-cuevas” has been strong from overseas buyers keen to purchase their first property in Spain. The province of Granada has the largest cave dwelling population in Europe and property developers have transformed hundreds of untouched or partly re-formed cave houses into modern holiday and second homes.

Going underground

Cave houses by virtue of their "construction" maintain a steady temperature of around 20 degrees centigrade all the year round. This natural air conditioning system is an attractive feature as temperatures can often reach 40 degrees in the summer months. All modern conveniences including electricity, plumbing and heating and even Jacuzzis and broadband are available in cave homes and regular ventilation ensures a damp free property.

As each cave home has been hand carved this creates a unique character for the property. Rooms tend to reflect the contours of the rock and the soft stone means that another room can be carved out as you need it so expansion is not a problem. But if you're not happy with the designs on offer, you could join the growing number of people commissioning specially trained architects to design and "build" a new cave home from scratch.

And for those people concerned about the environment, it's good news too. These dwellings can be considered to be ecologically sustainable or “green” as they have been dug out of the soft sandstone resulting in minimal impact on the local environment. There is limited need for or use of man-made products such as concrete, insulation fibres or plastics and the year round even temperatures and rock formed walls lend themselves to natural materials, such as wood, cane, cotton and linen to create an elegant, eco home.

Taking advantage of the natural situation of a cave home will result in less energy consumption and hence lower running costs. Council tax rates are approximately 75 euros (£51) per year and the Spanish government is also playing its part in encouraging cave home occupation by offering grants to contribute to the costs of installing renewable energy systems such as solar panels. Many local craftsmen are busy producing furniture to suit the cave dwellings and the prices enable anyone to have a designer home for the price of a designer room in the UK.

Cool cave hot spots

Within Granada there are three separate concentrations of cave houses, the historic Albaycin and Sacromonte neighborhoods of Granada City, Gaudix and Baza. The Albaycin and Sacromonte are adjacent hillside neighborhoods, both of which form part of a UNESCO World Heritage Site along with the Alhambra Palace. The cave dwelling population of the areas is rapidly increasing and some cave houses are extremely large, having ten or more rooms.

So, what makes a 21st century cave home a good investment? Christina Sanchez of 1 Casa comments, “Cave homes present the ideal opportunity for buyers to get onto the Spanish property ladder. Prices start from only 23,000 euros or £15,000 and with modernization and good styling can sell for up to 350,000 euros (£215,000) in some areas.”

Ever considered buying a holiday cave?

Well, strange as it may sound, "casas-cuevas" are already a very popular option with overseas buyers looking to purchase their first holiday property in Spain...

Cave homes date back to the 8th century when the Arab communities replicated their cave dwelling traditions in the provinces of southern Spain. Right up until the 1950s tens of thousands of native farming communities lived in these caves but with the advent of tourism in the early 1960s a mass exodus of the workforce to the lucrative coasts meant that many caves were simply abandoned.

Over the last decade, however, interest in these “casas-cuevas” has been strong from overseas buyers keen to purchase their first property in Spain. The province of Granada has the largest cave dwelling population in Europe and property developers have transformed hundreds of untouched or partly re-formed cave houses into modern holiday and second homes.

Going underground

Cave houses by virtue of their "construction" maintain a steady temperature of around 20 degrees centigrade all the year round. This natural air conditioning system is an attractive feature as temperatures can often reach 40 degrees in the summer months. All modern conveniences including electricity, plumbing and heating and even Jacuzzis and broadband are available in cave homes and regular ventilation ensures a damp free property.

As each cave home has been hand carved this creates a unique character for the property. Rooms tend to reflect the contours of the rock and the soft stone means that another room can be carved out as you need it so expansion is not a problem. But if you're not happy with the designs on offer, you could join the growing number of people commissioning specially trained architects to design and "build" a new cave home from scratch.

And for those people concerned about the environment, it's good news too. These dwellings can be considered to be ecologically sustainable or “green” as they have been dug out of the soft sandstone resulting in minimal impact on the local environment. There is limited need for or use of man-made products such as concrete, insulation fibres or plastics and the year round even temperatures and rock formed walls lend themselves to natural materials, such as wood, cane, cotton and linen to create an elegant, eco home.

Taking advantage of the natural situation of a cave home will result in less energy consumption and hence lower running costs. Council tax rates are approximately 75 euros (£51) per year and the Spanish government is also playing its part in encouraging cave home occupation by offering grants to contribute to the costs of installing renewable energy systems such as solar panels. Many local craftsmen are busy producing furniture to suit the cave dwellings and the prices enable anyone to have a designer home for the price of a designer room in the UK.

Cool cave hot spots

Within Granada there are three separate concentrations of cave houses, the historic Albaycin and Sacromonte neighborhoods of Granada City, Gaudix and Baza. The Albaycin and Sacromonte are adjacent hillside neighborhoods, both of which form part of a UNESCO World Heritage Site along with the Alhambra Palace. The cave dwelling population of the areas is rapidly increasing and some cave houses are extremely large, having ten or more rooms.

So, what makes a 21st century cave home a good investment? Christina Sanchez of 1 Casa comments, “Cave homes present the ideal opportunity for buyers to get onto the Spanish property ladder. Prices start from only 23,000 euros or £15,000 and with modernization and good styling can sell for up to 350,000 euros (£215,000) in some areas.”

Soft landing’ may have already happened
House prices have entered a new era of stability and a ‘soft landing’ may have already have happened, according to an asking price survey.

According to the latest Home.co.uk asking price index, prices have stabilised sufficiently since the dramatic rises of 2004 and subsequent downward adjustment, to suggest a ‘soft landing’ was found in April this year.

The more speculative pricing practices, characteristic of surging markets, have been significantly reduced over the last two years in most regions, said the report, with the ‘froth’ dieing away way to reveal asking prices that are more consistent with current affordability constraints dictated by the cost of borrowing.

Asking prices for homes currently on the market in England and Wales moved up again this month, by just 0.5%.

Despite a rise in interest rates, confidence amongst sellers of residential property has firmed up over recent months. The sustained market correction in asking prices, noted in previous reports, has now slowed further to give a 12 month change of just -0.6%.

The more recent national average trend, over the last six months, indicates a consolidating market. This new phase of asking price stability has been brought about through a combination of marginal price increases in market entrants and reduced discounting activity with respect to prices of houses already on the market.

The preceding table clearly illustrates the continued regional disparity in average house price trends between the various English regions, Wales and Scotland over the last year. The strongest and weakest areas, Scotland and the North respectively, show a striking price change differential of 16.3%, which serves to underline the relative diversity in market sentiment around the UK.

Despite a having the highest price to earnings ratio (12.4), asking prices in the South West continue to rise (1.0% since the September report and 2.5% since November 05). Scotland, Wales and the South West are the only regions to have shown notable asking price rises over the last 12 months.

After a period of extraordinary growth lasting several years, the average asking price in Scotland has been essentially stagnant for the last six months, showing little deviation from the £150,000 mark. This trend is consistent with a market wherein the affordability constraints have been reached.

Here we gazump again, surveyors report


House prices rose for the 11th consecutive month in September and at the fastest pace in four years, the Royal Institution of Chartered Surveyors said in its housing market survey.


Estate agents report that ‘gazumping’ is taking place amid prices in the capital rising at the fastest pace since January 2000, said the survey published yesterday.

Elsewhere, a ripple effect is taking place across the country with house prices in the North West and East Anglia picking up sharply, while Wales, Yorkshire and Humberside also recorded price rises.

45.1% more Chartered Surveyors reported a rise than a fall in September, up from 34.9% in August, and more than double the long run average of 21%. RICS estate agents reported that price rises are being driven by a combination of would-be buyers returning to the market and the limited availability of property.

Price increases were again led by London and the South East, boosted by a booming City economy, with rising investor confidence pushing the stock market to its highest level since May.

Buyer enquiries rose for the sixteenth consecutive month, the longest run on record. Above trend economic growth combined with a strengthening employment market continued to boost buyer confidence but the rise is the smallest since April 2006. New instructions to sell property fell for the fourth month in a row, at the fastest pace since June 2002, indicating that households feel under little pressure to put their property on the market.

Optimism in price rises is at its highest since October 2004. However, surveyors expect a modest slowdown in sales activity as interest rates are expected to rise again.

RICS spokesman, Jeremy Leaf, said: “Greater economic activity has created a ripple effect in house prices across the country. With stocks of property low and buyer enquiries on the increase, sellers remain in poll position to benefit in the short term.”

“Continuing house price rises will make it difficult for the Bank of England to leave the base interest rate level at 4.75%, unless the economy shows unexpected weakness.”

“With affordability conditions for first-time buyers worsening, as price rises outstrip wages, higher interest rates will not help. However, a strong economy means that the housing market should see a soft landing in 2007.”

First-time buyers in worsening struggle
The Council of Mortgage Lenders has warned that first-time buyers are continuing to struggle in the current housing market. They accounted for just 35% of the total number of house purchase loans in August, their lowest proportion since the current survey started in April 2005.

In terms of affordability, there was a worsening for first-time buyers in August. While the median first-time buyer mortgage remained at 90% of the property value, typical income multiples rose to 3.27, up from 3.24 in July and 3.08 in August last year.

The proportion of income that first-time buyers spent on their mortgage interest payments rose to 17.1%, the highest level since February 2005, and up from 16.7% in July and 16.5% in August last year.

The average size of a first-time buyer loan increased at twice the rate of the increase in average first-time buyer income.

The proportion of first-time buyers paying stamp duty leapt from 48% to 56% in the space of just a year, and only 15% of home movers escaped the tax in August, compared with 21% a year earlier.

More encouragingly, their numbers have been rising in absolute terms - and at 38,100 were actually more robust than the 34,900 in August last year. The age of a typical first-time buyer has remained consistent at 29 for the past year.

Fixed rate popularity waning

Across the market as a whole - first-time buyers, movers and people remortgaging - fewer loans were taken out at fixed rates. While still accounting for 60% of new loans, the popularity of fixed rates has waned markedly since its peak at 76% in November and December last year. Trackers are rising in popularity, accounting for 25% of new loans in August, their highest proportion on record.

Commenting on the market, CML Director General Michael Coogan said: “Interpreting these figures suggests that borrowers are falling into two camps. There are those who believe rates are near their peak, and who are confident enough to risk a short-term rise in rates for the pricing benefits offered by discounts and trackers. And there are those who want greater financial certainty, who may well be increasingly choosing longer-term periods over which to fix their rate.”

"Overall affordability has worsened a little, especially for first-time buyers. Over the period of a year, small monthly changes can nevertheless be significant - as the rise in the proportion of mortgage borrowers required to pay stamp duty shows. For the rest of this year, we expect some moderation in activity although the market is continuing to outperform our earlier forecasts."

The rise of the landlord millionaire


Research published by Paragon Mortgages shows the remarkable growth of the buy-to-let business in just ten years.

The average professional buy-to-let investor now owns 12 properties, usually flats or houses in city centres, worth £1.54m.

To qualify as a 'professional', they have to own at least three properties and have been renting them out for at least three years.

According to Paragon Mortgages’ latest buy-to-let trends survey, portfolios are expected to grow by 3.4% over the next year, while yields are set to rise from 6.06% to 6.13%.

Paragon Mortgages’ managing director John Heron commented: “Buy-to-let has come of age early. While residential property investment was not a new concept when ARLA coined the term ‘buy-to-let’ in 1996, it has already established itself as an important, discrete business sector.”

“There is a much better understanding now of the vital role played by the private rented sector in providing accommodation to many people, particularly as the role of council housing has dwindled. It meets the housing needs of a wide variety of different types of person, including students, young professionals and first jobbers, key workers, foreign migrants, and families on benefit.”

Portfolio size is up 7.3% in value terms and 4.4% in numerical terms over the past quarter, pointed out John Heron. “We have seen a significant pick-up in investor activity in 2006, as landlords grow their portfolios in response to a clear increase in demand for rented homes,” he said.

In the survey 91% of landlords reported that tenant demand is on the rise or stable, and only 7% said it was declining. Respondents with a positive outlook outnumbered those with a more negative viewpoint by 13 to 1.

As a result, expectations as regards rental yields are positive, expected to go up from 6.06% to 6.13% over the next year.

“Not surprisingly,” said John Heron, “this translates into enhanced investment activity. Landlords plan to grow their portfolios significantly over the next 12 months, and all the evidence points to them continuing to increase their involvement in the years to come on the back of rising demand and rising yields.”

The Centre for Economics and Business Research forecasts 40% growth in the private rented sector over the next ten years, equivalent to around a million homes. “Investors are set to capitalise on this opportunity and provide much needed homes to more than 10% of the population,” concluded Heron.

Homebuyer confidence remains strong


Homebuyers are taking interest rate raises in their stride, new research indicates. Neither August’s hike nor talk of a rise in November is unlikely to put off plans to buy a home or move.

However, homebuyers are looking to protect themselves from further rate rises, said the report from Yorkshire Bank.

According to the report, just one in 10 (9%) house hunters and one in five (18%) first-time buyers would consider putting off plans to buy due to the interest rate rise.

However, higher rates have led to a sharp increase in the number of people reviewing their mortgage deals, with fixed deals growing in popularity - especially amongst first-time buyers.

One in four (25%) first-time buyers are now considering fixed deals to protect themselves from further rate hikes - an increase of 13% in the last three months. Homeowners are also keen to ensure they are still getting the best deal with one in five reviewing their existing mortgage arrangements.

Gary Lumby, Yorkshire Bank’s head of retail, said, “With many predicting further Bank of England rate rises, it is pleasing to see that buyers aren’t just continuing to search for houses without considering the financial implications of the higher rate of borrowing.”

According to figures from the Council of Mortgage Lenders, 127,300 people took out fixed rate mortgages in July, an increase of 14,100 on the same month in 2005.

Confidence remains strong

Yorkshire Bank’s research found that although nearly three out of four (70%) people believe the Bank of England will announce further base rate increases, confidence in the market remains strong. Almost three out of four (71%) still think house prices will continue rising.

Gary Lumby said: “Despite further interest rate increases seeming likely, buyers fully expect house prices to continue growing and the market to stay strong.”

“If house prices were to slow or even fall due to higher interest rates then you might anticipate more people to put plans to buy on-hold. However, with prices still rising people are still keen to get on and move up the property ladder. But in this climate they may feel they have little choice – the longer the leave it, the more expensive it will be to buy – especially if interest rates do go up again.”

Drop off in offering under

Despite a rise in interest rates, the number of buyers prepared to offer under the asking price has fallen, according to Yorkshire Bank’s research. Only 19% would now try an offer under the asking price - compared to 26% three months ago.

Gary Lumby said: “Normally you would expect that with higher interest rates, buyers’ budgets would be tighter. This in turn might result in more buyers thinking to offer under the asking price.”

“However, sellers are realising that with house prices continuing to grow, they are in the driving seat and can hold out for the asking price at least. As a result buyers, are having to refine their tactics accordingly.”

Mortgaging to the max versus meals out

More than one in four first-time buyers say they would not wish to simply take out the largest mortgage possible, preferring to have a disposable income to enjoy a social life.

Graduate first-time buyer plight

A stark assessment of the current plight of graduate first-time buyers reveals more than half cannot afford to buy a home.

According to a report from Scottish Widows high house prices combined with student debts are pushing property ownership out of the reach of many.

Even for those graduates that have succeeded in getting on the property ladder, almost two thirds had to rely on buying with a partner and if they were to split up 68% would not be able to buy them out, this rises to 75% of women.

For the majority of graduates (64%) it’s unaffordable house prices that prevents them from getting on the ladder. This figure has been consistent year on year as the greatest barrier to getting on the housing ladder. The following reasons were also cited:

Almost a third just cannot save for a deposit;
Most surprisingly 60% of graduates believe they do not earn enough to get them on the housing ladder;
One in seven believe they are just not ready to make the commitment.
With the average deposit for graduate first-time buyers currently at £16,219 (rising to £30,185 in London) buying a home is likely to remain an unrealistic dream, said the report. Debt is also an issue, the average student loan debt is £9,246 and one in eight believe this will prevent them from getting on the property ladder. Debt is such a barrier for some graduates that in hindsight one in six would not have taken out a student loan whilst at university.

Murdo McHardy, head of product development and marketing at Scottish Widows said: “For graduates to stand a chance of getting on the housing ladder, then both lenders and the government need to work hard to develop products that suit their needs.”

“Increasingly graduates are having to find different ways of getting on the ladder – through buying with other people to relying on their parents to put them up while they save. But there are solutions out there such as products that will allow graduates to borrow more than three times their salary and those that will allow parents to guarantee the loan.”

Coastal populations on flood alert

Council emergency planning teams will be on full alert this weekend as the highest tides in 20 years are predicted to hit England’s coast.

Spring tides today (Friday), over the weekend and on Monday are predicted to be some of the highest for several years in some coastal locations around the UK, said the Environment Agency.

The tides will only cause major flooding if combined with adverse conditions like strong winds, storm surge and waves associated with a low pressure weather system.

Local authorities have identified rest centres where residents can seek shelter if their homes are hit by floods and trained teams are on hand to give refreshments, advice and support.

If flooding looms the Environment Agency will issue one of four warning codes, ranging in severity from Flood Watch to Severe Flood Warning. This should give council emergency planning teams, working with the emergency services and Environment Agency, 12 hours to put their flood plans into action.

Emergency planning teams are on full alert and ready to deal with any flooding that the high tides could cause this weekend, but it is important that everyone living on the coast or in a flood risk area is prepared. People should not wait until water is running down their streets to do something.

“People should sign up to the Environment Agency’s automated warning system, so they get a call the moment there is a risk their home could flood,” said LGA chairman Cllr Paul Bettison.

There are lots of precautions you can take. Emergency planning chiefs have set out a six point plan that people can take to protect their home from flooding:


Turn off gas, electricity and water supplies at the mains
Unplug all electrical items and store upstairs or as high up as possible
Open doors and windows, smear a layer of silicone sealant around the frame, then shut and lock the door or window.
Ideally, cover doors, windows and airbricks with plywood, sandbags or metal sheeting.
Move as much furniture and electrical blankets as you can upstairs. Alternatively, raise them up on bricks or blocks – this may be very helpful for large appliances such as fridges/ freezers.
Keep important personal documents in a sealed bag and in a location safe from flood water.
High tides on the North West coast were the EA’s major concern yesterday, but councils in many areas have emergency teams ready for action.

BoE maintains interest rates at 4.75%
UK interest rates have again been left unchanged at 4.75% following the Bank of England's Monetary Policy Committee meeting which closed at midday today.

The decision was widely expected although markets had been jittery and experts somewhat undecided on when the next move would come. Strength in the housing market and recent figures for lending had given scope for another surprise rise.

The majority of experts are predicting that a rise to 5% is needed and the BoE will probably do this next month.

Buying to Rent: Murcia vs. Aquitaine

Despite competition from emerging markets in Eastern Europe and beyond, recent reports show that demand for property in Spain and France continues to be high, thanks to their proximity, stability, idyllic climates and lifestyles. Murcia and Aquitaine in particular stand out as desirable areas, offering cheaper and less built-up alternatives to the Costa del Sol and Cote d'Azur. The number of properties listed in Murcia and Aquitaine on leading holiday home rental website, Holiday-Rentals.co.uk, increased 85% and 59% respectively in the last 12 months alone. Here, the company reveals the results of a survey of owners on buying to rent in each area.

Investors are being attracted to Murcia due to relatively low levels of urbanisation, the great climate and the fact that it is the golfing capital of Europe. According to the Barclays-IESE Barometer, there was a 46% rise in Murcia's British population last year and over the next decade it is predicted that the region's population will grow by 35%. The Spanish daily 'ABC' also recently reported that 200,000 new properties are planned for the Mar Menor area.

In France, recent statistics released by the FNAIM (Fédération Nationale de l'Immobilier) revealed that property prices in almost every region increased by over 10% in the last 12 months, with Aquitaine among the top three performers, making it an attractive option as property prices are still considerably cheaper than those further south, along the Mediterranean coast.

Murcia and Aquitaine compared

Interestingly, a large number of owners in both regions have a total household income of less than £50,000 per year, reinforcing the fact that foreign property ownership is now accessible to more people than ever before. The most common purchase price in each country was also relatively low, at £100,000 to £150,000, although there is a wider price range in Aquitaine than in Murcia. In both areas, most owners had spent less than 11% of purchase price on fees, with around a third spending between 9 to 11%.

Nearly all properties in both areas are near an airport served by a low cost airline, but this had a stronger influence over the purchase decision in Murcia. The strongest influence for owners in both cases was love of the area, followed by ease of access from the UK and the presence of low-costs in Murcia and cost of the property in Aquitaine. Rental potential was the next most important factor in both areas, while re-sale potential and the economic performance of the region were considerably less influential in Murcia and mostly not at all in Aquitaine. Most people in Murcia own two bedroom apartments by the sea, or on a resort, while the most common property type in Aquitaine is a farmhouse and the number of bedrooms per property, four.

The Mar Menor area and golf resorts are considered the prime spots for investment in Murcia, while the highest concentration of properties in Aquitaine is in the Dordogne. However, the department of Gironde is gaining in popularity thanks to the abundance of unspoilt, picturesque villages around the river estuary that offer plenty for potential renters: the sandy beaches of the Atlantic coast, the up-and-coming city of Bordeaux, and beautiful vineyards and lakes. Pyrénées Atlantiques is also an attractive option, as rentals here extend to the ski season, plus this department is home to the vibrant and trendy towns of Biarritz and Pau, which according to the FNAIM (Fédération Nationale de l'Immobilier), experienced one of the highest property price increases in the country - 17.7% - between March 2005 and March 2006.

In terms of rentals, the season in Murcia is longer - 16 to 20 weeks per year on average - while in Aquitaine, the average is 11 to 15 weeks per year. However, at £400 per week or less, average rental rates in Murcia are lower than Aquitaine, where the average rate is £1,000 to £2,000 per week. Owners also revealed that the majority of their bookings now come from the Internet, in most cases via Holiday-Rentals.co.uk, which has the benefit of providing a large number of properties and comprehensive adverts in one place, with a powerful search tool built in for renters' convenience.

A shocking way to put out a home fire

New research published today by Halifax Home Insurance reveals that more than eight and a half million adults in the UK do not have a smoke alarm installed in their home to alert them if a fire broke out.

Furthermore, over 25 million UK households do not own a fire extinguisher and a staggering 31 million do not have a fire blanket. More than five million adults do not have any of these basic fire safety devices in their homes.

The figures come from an internet survey of over a thousand adults by survey company TNS in January this year.

Fire safety ignorance

Even if householders do have the correct equipment to tackle a small fire, many UK adults lack basic fire safety knowledge.

Halifax Home Insurance’s research found that almost four million do not know the correct procedure to tackle a small electrical fire, such as a toaster catching alight. Almost one and a half million would risk serious injury by dousing an electrical fire with water. The correct procedure would be to pull the plug out or switch off the power at the fuse box before combating the flames with a fire blanket, or non-water based fire extinguisher.

Despite extensive education campaigns by fire brigades across the country, almost a quarter of a million British adults still believe that dousing a chip pan fire with water is the most appropriate way to put it out. In reality, throwing water on a chip pan fire could make the situation worse and create a potentially lethal fireball.

Vicky Emmott, senior underwriting manager Halifax Home Insurance, said: "It is worrying that so many householders still do not have the basic fire safety devices in their homes. With the prices of smoke alarms starting at just £5 from supermarkets or DIY stores there is no excuse for people not to protect themselves.”

“Thousands of people are injured by home fires each year so it is vital people take adequate precautions to safeguard their families and possessions. Unfortunately, the fire education message is still failing to get through to millions of Britons.”

People living in the North West are the least likely to have a fire safety device installed at home (20%) compared to the South East and East Anglia (10%).

Homebuyers get more protection from Sunday

People buying or selling a house must be offered clearer information by estate agents from this weekend as a strengthened code of conduct is introduced for the industry.

The new rules are being brought in by the Ombudsman for Estate Agents this Sunday. As well as requiring agents to disclose more information to potential buyers, they must now be more open about the fees they charge.

The OEA has 2380 member firms who could now be charged up to £25,000 compensation for breaking the code. Member agents display the OEA logo so potential homebuyers can recognise their status.

However less than 50% of estate agents belong to the OEA scheme and consumer groups have called for membership to be mandatory. Ongoing talks with other estate agents’ bodies NAEA and RICS expect to introduce a single code of conduct for the whole industry.

Under the changes, estate agents will be forced to confirm in writing to buyers who have made an offer that their approach has been passed to the seller. They must also inform anyone viewing a property if an offer has already been made.

Estate agents who charge a percentage of the selling price must now illustrate this as an actual amount and explain that this will change if the price changes.