Emerging markets gaining ground on traditional hotspots

Currency specialists HiFX today releases its first Annual Global Property Hot Spots report into trends for Brits buying property abroad and looks back at what last year’s action tells us about the year to come...

In their first Annual Global Property Hot Spots report released today, HiFX report that France and Spain remained the two favourite countries in which to buy property in 2006. However, the currency specialists also report that both old faithfuls are losing out to a handful of emerging markets such as Bulgaria, Dubai and Cape Verde.

Mark Bodega, Marketing Director of currency specialists HiFX commented: “The global property market has avoided any crash predicted by doomsayers last year, but there has been a noticeable slow-down in overseas house price growth."

The 2006 Report also shows that British buyers are becoming more adventurous. According to HiFX there are a number of reasons for this. Firstly, property in these emerging markets can be considerably less expensive. For example, some Eastern Bloc countries such as Hungary and Poland still offer excellent value for money despite significant price increases in 2006. Many in the industry expect this to continue through 2007.

Bodega commented: “In many cases the emerging markets offer property which is significantly less expensive than the traditional favourites. As UK property prices have continued to rise dramatically in the UK over the last 12 months, combined with rising interest rates, we’ve seen the overseas property market open up and become accessible to more of the UK population.”
Secondly, HiFX attributes the rise in interest in more far flung destinations to a shift away from people purely buying holiday homes, towards more serious property investors.

Bodega commented: “As people look to where they can make the most money and returns, they are more likely to look away from the traditional markets to areas of expansion and new development”, says Bodega. “We’ve seen properties in the emerging markets snapped up by investors in 2006. Bulgaria remains a popular investment destination with investors keen to cash in when it joined the EU and we’re seeing a consistent amount of interest in Romania for the same reason.”

Differing motivations for buying property abroad
HIFX, which buys currency for 7-10% of Brits buying abroad each year (25,000 clients annually), concludes that Brits buying property abroad fall into three distinct categories, which reflect the changes observed in the market:

The Traditionalists: This is still the largest group and covers people who have bought property in France, Spain and other locations close to the UK. These people are mostly buying holiday homes or homes to retire overseas. The close proximity means they can use the home for regular holidays with cheap flights, easily rentable accommodation and a quick escape to the sun. These people also look for a well established expat community to help them feel at home even when they are abroad.

The English Adventurers: These people are more daring and want to go further a field for their holiday home. They don’t mind traveling long distances and also often consider emigrating to their holiday home at some point. The Adventurers are still sun-seekers but in a much more exotic location than the traditionalists.

Hot Spot Investors: This growing group of financially driven people want to buy in places like Germany, China, Romania, Croatia and Hungary which could offer excellent investment returns. These countries also offer buy-to-let opportunities as a large proportion of local populations are renters. However they should be careful as the “fad” of these countries could disappear just as quickly as they have appeared.

And for those currently thinking of purchasing property abroad, Bodega offered the following piece of advice: “At this time of year, as many people are making new year’s resolutions and thinking more about the future, their thoughts may be turning to buying their very own place in the sun, making an investment or even emigrating."

"For anyone thinking about buying property abroad, we always urge them to plan carefully and consider the currency risks associated with buying a property abroad – currency fluctuation can make a huge difference to the amount of money you pay and protecting yourself from these fluctuations should always be part of the planning process.”

Online banking gets thumbs up from mature users

Online banking is booming with over two thirds of people (68%) saying they conducted the majority of their banking on the net last year compared to just one in five (18%) in 2005, new research from Lloyds TSB Internet banking reveals.

Over half of people surveyed (57%) say that they used Internet banking more often this year than last year with just one in ten (11%) stating that they never manage their money online.

The real surprise is that a staggering 70% of over 50s claim that Internet banking is their preferred method of money management. Conversely, younger people aged between 18 and 25 are the least likely to manage their money on the web with over a third (36%) preferring to use the telephone or go into their local branch.

The main reason respondents gave for banking online, cited by over half, is that the service is available 24 hours a day, seven days a week. Nearly a quarter like the convenience of being able to manage their money wherever they are.

Generally, Internet banking users are clued up about the things they can do online including checking their balance, paying their bills, searching their statements and transferring money between accounts. However, a quarter were unaware that they could set up and cancel direct debits and standing orders online.

Of the one in ten who doesn’t currently bank online, the main reason given was that they don’t see the need and are happy with the way they bank now (43%).

Anita Hockin, head of Internet, Lloyds TSB said: “The growth of Internet banking is phenomenal and this year is set to break records. We now have over four million registered Internet banking customers and the 2nd January was the busiest Internet banking day we’ve ever had with around ten customers logging on every second.”

Tax-efficient ways to give to loved ones

With house prices increasing, university costs on the rise and even the cost of marriage on the increase, tax adviser Vantis has provided some suggestions for parents and grandparents looking to maximise the amount that can be put aside as a nest egg for relatives.

According to Alan Ford, client partner at Vantis: “It’s difficult for many to now save the capital to build up a substantial nest egg. However, there are some useful tax incentives that can be used to give children and grandchildren a helping hand.”

“We would urge people to use New Year to review their finances and investigate tax efficient methods of passing capital on to the next generation. Professional advice should always be sought in advance.”

Useful tactics include:

Personal allowances
Children have their own personal allowance, which is currently £5,035. Capital gains are tax free for everyone including children if they do not exceed £8,800.

Grandparents should consider building a nest egg for grandchildren by starting a regular savings plan on their behalf. However, income on gifts by parents doing something similar remains taxable on the parents.

Child trust fund
Parents can contribute towards the permitted £1,200 a year investment to a child trust fund account for a child born after 31st August 2002 for whom child benefit is payable. No withdrawals are allowed until the child is 18.

Stakeholder pensions
For the long term, consider starting a stakeholder pension for your child or grandchild. The child cannot access the funds until retirement, but this will provide a good base for their retirement fund. The government will add basic rate tax relief to the amount that you contribute. There are limits to the amount that can be invested - the current limit is £3,600 gross a year, which means a monthly contribution limit of £234 (£2,808) allowing for tax relief.

Holding funds in trust
Grandparents could consider holding funds in bare trust for their grandchildren. This means you retain control over the investment, but pay tax on income earned from it at the child’s rate rather than yours. If this is done, you have total control over when the child gets hold of the money up until the age of 18. And in most cases money you put in trust no longer counts as your estate for inheritance tax purposes.

Professional advice should be sought as to the most appropriate trust for your purposes

Small gifts
In any tax year, an individual may gift up to £250 to any number of donees free of tax. Each grandparent, for example, could give each of their 8 grandchildren £250 annually over a twenty year period. This would dilute their combined estates by £80,000 and secure an Inheritance Tax saving of £32,000 on current rates.

Gifting your annual exemption
In any tax year, an individual can gift up to the annual exemption of £3,000 to individuals or trusts of their choice. Any unused exemption from the previous tax year can be carried forward to the current tax year but no further.

Over a 20 year period, both husband and wife could gift up to £126,000 out of their combined estates tax-free, and achieve a combined potential Inheritance Tax saving of £50,400.

Regular gifts out of income
Those with income in excess of their needs should consider this option. Making regular cash gifts to someone can provide a significant IHT exemption, yet it is possibly the most under-used device by high income earning individuals. The donor must be able to show that the gifts are habitual, are made from post-tax income, and leave the donor with sufficient income following the gift to maintain their usual standard of living. The recipient should always seek advice on how to utilise the funds.

PETS make a great gift
Give someone a PET, and both the donee and your estate could benefit: gifts to individuals qualify as Potentially Exempt Transfers (PETs). As long as the donor survives the gift by seven years, the value of the gift falls outside the donor’s estate for IHT purposes, provided the donor does not retain either a direct or indirect benefit in the assets being gifted.

There is no limit on the amount of the gift allowing individuals to provide a substantial sum for a deposit on a house, for example. Surviving the gift by at least three years should see a measure of Inheritance Tax saving due to the tapering provisions.

Say ‘I do’ to the wedding gift
The UK divorce rate fell by 7% in 2005 and marriage seems as popular as ever – perhaps because of the glittering gift list the couple is able to compile. Subject to certain conditions, each parent can gift £5,000 to their child on the occasion of their marriage (known as ‘gifts in consideration of marriage’). Grandparents or more distant relatives can gift £2,500 and any other person £1,000 free of tax.

Passing wealth to your spouse
Married couples and civil partners can take advantage of the exemption for transfers between spouses whether made during their lifetime or on death. It is not uncommon for one spouse to hold all – or a majority – of the wealth in their name and couples in this situation should ensure that assets to the value of the IHT nil rate limit (currently £285,000) are transferred to ensure that the amount of IHT payable on the death of the surviving spouse is minimised. Similarly IHT inefficient Wills could exacerbate the liability on the death of the surviving spouse by £114,000 at current rates and couples should have these health checked as a matter of course.

Alternative Investment Market (AIM) shares
Consider creating a portfolio of AIM shares to pass onto relatives. AIM shares can qualify for exemption from IHT after being held for 2 years so could be passed by will (or into trusts). There are investment management companies that can provide specialist AIM portfolios and specialist advice should always be sought.

Pre-emptive rates hike was a close vote

The Bank of England's unexpected decision to increase interest rates earlier this month was a pre-emptive strike to avoid even higher rises, the governor Mervyn King has revealed.

However, minutes of the Bank’s Monetary Policy Committee meeting released this morning reveal that though it was a deliberately poised ‘surprise’ rise, it was far from clear which way the members would vote.

In the end, the Bank of England's committee voted by the narrowest of margins, 5-4, to raise interest rates to 5.25%. Five members of the Committee (the governor, John Gieve, Kate Barker, Tim Besley and Andrew Sentance) voted in favour of the proposition. Rachel Lomax, Charlie Bean, David Blanchflower and Paul Tucker voted against, preferring to maintain Bank Rate at 5.0%.

Pre-emptive strike to avoid even higher rises

Speaking to the Birmingham Chamber of Commerce on Tuesday, Mervyn King said that the quarter of a point rise to 5.25% was vital to prevent inflation straying further beyond the government's 2% target.

"By responding early to changes in the inflation outlook, the MPC ultimately needs to raise interest rates by less than would be the case if we delayed," he said.

But the governor gave no hints on whether there would be further rate rises.

Minutes of the MPC meeting show a flavour for surprising the institutions with a rise that did not conform to their expectations. Recording the committee’s view on policy the minutes said, “Committee noted that an immediate change in Bank Rate would clearly be a surprise to financial markets. Market prices indicated that a rate rise of 25 basis points was expected, but not until February. This probably reflected the fact that the Committee had not changed interest rates other than in an Inflation Report month for some 2½ years.”

"For a majority of members there was already sufficient evidence to justify an increase in Bank Rate and no compelling reason to delay," the minutes added.

Elderly homeowners continue to get raw deal

The over-75s are still the age group being hardest hit by inflation, latest figures show.

Spiralling home-related costs such as energy and council taxes mean the elderly's annual inflation rate in December increased further to 4.2%, some 40% higher than headline inflation and more than double the government inflation target, according to the Alliance Trust Research.

The headline findings, based on analysis of official December inflation figures and their impact on different age groups’ spending patterns, are:

Inflation for the over 75s is now running at 4.2% - that’s 40% higher than headline inflation of 3.0%

Gas price inflation of 40%, electricity price inflation of 27% and food price inflation of almost 5% continue to drive the elderly inflation crisis.

There is general unease now that the UK’s headline rate of inflation has reached 3.0% - but the over-75s have been facing a rate of inflation in excess of 3% since May.

Shona Dobbie, head of the Alliance Trust Research Centre, points out that their 4-year study has shown consistently that the UK's elderly are hardest hit by inflation among all the age groups.

Although the inflation rate facing every age group is on the rise, the impact of higher prices for basic goods, such as gas, electricity and food, falls most heavily on the elderly, who spend a larger proportion of their budgets on these necessities.

The Alliance Trust maintains its call for pensions to be linked to rise in retired cost of living.

Medieval plot returns to haunt homeowners

In a bizarre revival of medieval alchemy, the High Court is set to open a Pandora’s box of misery across the country in just a few weeks time.

The case was decided three years ago in the House of Lords and already means that thousands of homeowners are a target for the unrestricted costs of repairs to churches across the land. All that remains to be settled by the High Court next month is just how much the Church of England will gain from the hapless Mr & Mrs Wallbank who could face a bill of around £500,000.

When the decision is announced on exactly how much must be paid by Mr & Mrs Wallbank, it means the Church of England can then hunt down every other homeowner in England and Wales whose houses, patios or gardens have been built on old church land, forcing them to pay unrestricted costs for building repairs to their local church.

When the Wallbank couple lost their ‘test case’ in the House of Lords 3 years ago, it gave the Church of England the green light to seek out all other home or land owners in the country that were unfortunate enough to be in possession of land that once belonged to the church, often as far back as medieval times.

It is next month (Feb 5th) that the High Court is due to decide how much this ‘test case’ couple have to pay out. This ruling will then set the precedent for the rest of the home and land owners in around 5000 parishes across England and Wales and open the floodgates for parishes to demand payments from their affected residents.

Questions are already being asked over what the obligation will be - ‘just’ repair, ie make the roof watertight, or will it be to renovate and rebuild entire chancels?

Old church land (called rectorial land) now forms everything from parts of people’s private gardens, patios and fields to the land beneath their kitchen floors. It is also part of communal and council owned land such as hospitals, schools, housing estates, factories, offices and sports grounds.

If you own this land, whether it’s a square foot or 5 acres, you are liable to foot the ‘blank cheque book’ bill of building repairs as soon as you are tracked down by your local church (via the Parochial Church Council PCC). Mr & Mrs Wallbank face financial ruin – let us hope the High Court has the guts to stamp out this dark revival of religious persecution.

Upper hand moving to the home buyer?

Despite the shortage of properties reported by Rightmove today, it is likely that we will see a shift in the balance of power from sellers to buyers as demand for property begins to cool, according to a separate report also released today.

Confidence remained strong throughout 2006, but the latest research from propertyfinder.com shows that even before the MPC’s shock rate rise earlier this month, there were early signs of a decline in optimism.

The January survey revealed that confidence was slipping amongst both sellers and buyers. 80.5% expected house prices to rise by 5.0% over the coming year, down from 83.9% expecting prices to rise by 6.3% in December last year.

Warren Bright, chief executive of propertyfinder.com said: “The impact of the August and November rate hikes wasn’t felt immediately. Recent reports from RICS and Halifax suggested some of the heat may already have begun to dissipate. The latest move by the MPC will further increase the pressure on mortgage borrowers.”

“With inflation at an 11 year high of 3.0%, it is now a virtual certainty that interest rates will rise again at least once this year, making it even more difficult for first time buyers to get on to the property ladder.”
“With this increasing demand for rented accommodation from aspiring first time buyers, our research has also revealed a rise in the number of homes being purchased as a buy-to-let investment.”

Seller v Buyer confidence
Entering 2007 sellers remained in a fairly strong position - with demand from buyers sufficiently high that they hardly needed to compromise on price. Propertyfinder’s research conducted prior to the MPC’s latest rate rise this month showed that sellers were only willing to accept, on average, a discount of 3.8% on the asking price (compared to 4.7% in December 2006).

Furthermore, the research showed many home buyers making offers above the asking price to increase their chances of securing a home. For the first time since October sellers were more optimistic than buyers (89.6% and 87.3% respectively), expecting house prices to rise by 6.2% over the next 12 months compared to 5.9% expected from buyers.

Warren Bright said: “Recently, sellers have clearly had the upper hand, with limited stock of property on the market relative to the number of buyers out there. With confidence starting to wane and interest rates on the up, it is likely that we will see a shift in the balance of power from sellers to buyers as demand for property begins to cool.”

“The financial markets are now suggesting that another interest rate increase is a done deal, with some reports suggesting that rates may go as high as 6.0%. We had expected the housing and mortgage market to slow naturally in 2007 but a more abrupt adjustment is now a real risk. It’s time for a pause so the market can digest the cumulative effect of this succession of rate increases.”

Residents vote gas-guzzlers out

Residents in Liberal Democrat controlled Richmond have backed a council led move to charge owners of carbon dioxide-spewing overlarge cars heavier parking charges than those with greener vehicles.

The plan which could see a tripling of on-street parking charges for some owners outside their own homes was supported by a narrow majority of 49% against 39% in a local authority survey.
The proposals will now be considered by Richmond Council's Overview and Scrutiny committee on 24 January, before going to cabinet on 29 January for a final decision.

A family with two large cars could see an annual parking permit of £750 if the plan is approved by the council. But it may not mean a big increase in revenue for the council. The survey also showed some 64% would consider changing to a less polluting vehicle if the plan is approved.
Richmond Council leader, Serge Lourie acknowledged: "These proposals were always going to spark a fierce debate. We have never had any illusions about that fact.”

"Climate change is the single most important issue facing our world today,” Mr Lourie added.
Scrabble to be first out with the charges

Lambeth Council could overtake Richmond as the London borough charging the most for gas guzzling vehicles such as 4x4s to park in the area.

And such is the cross-party excitement about the policy at Lambeth Town Hall, it could be implemented quicker than in Richmond, the only other borough where similar fees are planned.
Having frozen charges for eight years, Lambeth Council wants to increase parking permits by as much as 50% for just standard vehicles, with gas-guzzling vehicles facing even higher charges.
Councillor Lib Peck, cabinet member for environment and culture on Lambeth Council, told TransportBriefing.co.uk: "We are developing policies designed to persuade people to limit non-essential car use, and to encourage people to think about how much cars pollute when they come to change their vehicle.”

"People increasingly realise the importance of preserving the environment, and we are reflecting people's concerns by leading the way in tackling climate change."

The Association of British Drivers said it considered the plans by Richmond Council a “shocking lack of environmental awareness”, claiming the energy use and emissions resulting from design, manufacture, shipping, servicing and recycling of cars are being overlooked.

ABD Environment Spokesman, Ben Adams said, “If every 4x4 in the country was taken off the roads overnight it would not be possible to detect any difference in global atmospheric carbon dioxide levels. Our climate would be unaffected. This excuse for extortionate taxation is transparent; it's a blatant lifestyle tax.”

NAEA's top tips for people moving abroad

The National Association of Estate Agents (NAEA) is offering advice to homebuyers to ensure that dream of moving abroad doesn't turn into a nightmare...

The National Association of Estate Agents (NAEA) is advising homebuyers to think carefully when considering a move abroad, following recent research by the Office of National Statistics revealing that record numbers of Britons are relocating overseas. With the New Year being a popular time for people to think about starting afresh, it is important to plan thoroughly before making the move.

The latest figures show that the number of Britons emigrating annually has risen by a third over the last decade. With over 5 million Britons now living on foreign shores, emigration is a growing trend that shows no sign of abating. However, for those considering relocation, it is vital to carry out proper research. Ian Tonge, international expert at the NAEA, offers the following advice on how to ensure the reality matches up to your vision:

1. Do your research
Tonge said, “It is surprising how many people decide to live abroad without really knowing the area they are moving to. It is important to always visit the area to inspect potential houses, schools and social opportunities. Moving to an isolated area may become very lonely, especially if there is a language barrier. If English is not the primary language, don’t assume everyone will speak it."

2. Select your estate agent carefully
Tonge said: “When choosing an estate agent overseas, look for someone who is a member of a professional body. Over 700 agents at home and abroad are members of the NAEA and are specialists in international buying."

3. Get careful legal advice
Tonge said: “Once you have found a property, deal with as many of the legalities you can whilst in the UK. Property purchase rules, formalities and searches vary greatly between countries so seek expert advice to avoid potential misunderstandings before committing to a purchase."

4. Consider tax implications carefully
Tonge advised: “If you are already a homeowner in the UK, decide whether you are going to keep your current property. It may be useful to keep a foothold in the UK market. If you do choose to keep a home in the UK, however, you could be liable for Capital Gains tax if you let either property out or sell one so factor that into your plans."

Tonge continued: “If you intend to work abroad, check whether your adopted country has a taxation treaty with the U.K. to stop you paying income tax twice. Inheritance tax laws can be very stringent so make two wills: one in the UK and one in your adopted country. Local laws can sometimes create problems with inheritance tax laws in the UK. It is always advisable to consult a taxation professional as tax implications vary greatly."

5. Be aware of the additional costs involved
Tonge said: “Money is an important consideration as even if you buy your property outright you could be at risk from currency fluctuations. Britain has lower home buying costs and quicker time scales for moving than much of Europe so bear in mind that a longer completion on your new house could cost you money if the currency value changes. Your bank or mortgage provider can recommend a professional in your chosen country. Whoever you deal with should speak fluent English and make sure you get every agreement in writing. If anything does go wrong, you will have proof of agreements."

6. ...And most importantly, enjoy yourself!
Tonge added: “Once abroad, expats can register with the British Consulate who can provide assistance if you run into any difficulties. Local newspapers will provide details of clubs, societies and local events such as fiestas for you to enjoy. Above all, where ever you choose to live, remember to enjoy it!”

Holiday rentals increase as over half of Brits choose to self-cater

Private holiday home rentals are taking off, reports www.Holiday-Rentals.co.uk...

Due to an increase in the number of travellers choosing self-catering holidays and making independent arrangements on accommodation-only websites, private holiday home rentals are taking off, reports www.Holiday-Rentals.co.uk.

As leading industry analyst Mintel has observed, a growing number of Brits value the freedom and flexibility offered by self-catering accommodation. Mintel predicts that self-catering holidays will represent 62.2 per cent of overseas holidays in 2007. Operators have also reported a decrease in the number of self-catering packages, as more travellers now prefer to tailor-make their ideal holiday by booking each element of their trip separately online.

With an estimated 1.2 million Brits owning property abroad, and foreign property purchases continually on the rise, private rental accommodation now represents a significant part of the accommodation-only market and increasing numbers of travellers are discovering this new way to holiday. Renting a private property provides more space, privacy, flexibility and often more luxury pound for pound than other accommodation. It is also extremely cost-effective, often working out at a fraction of the price per person than hotels of a similar standard.

Another benefit of holiday rental accommodation is the huge variety on offer. Holiday-Rentals.co.uk has holiday homes available from around £100 to over £10,000 per week. With cottages and country houses, budget apartments and luxury villas, in the city or the country, by the beach or in the snow, it has a home for every holiday.

Goodbye to fixed rates

Many lenders are rushing to take fixed rate mortgage deals off the market after last week’s surprise bank rate hike.

As many as 12 lenders have suspended popular fixed-rate mortgages already. Some are withdrawing their entire range.

The snap action by lenders will deny borrowers who do not act quickly the chance to avoid any further increase in interest rates. This month's decision caught the market unprepared.

Julia Harris, of Moneyfacts.co.uk said: "The shock announcement of last week’s base rate increase may have taken lenders by surprise, with most industry experts expecting the rise to occur in February or March."

"Some lenders, however, have been quick off the mark, with several already announcing increases to their SVRs (standard variable rates) and revised tracker rates.”

"With a further rate rise still on the cards for 2007, those consumers on a tight budget will need to act quickly before more of the current best buy fixed rate deals vanish," Ms Harris added.

Louise Cuming, head of mortgages at Moneysupermarket.com, said: “My advice, if you will not incur a penalty to switch mortgage products, is to shop around urgently, especially if you are paying the lender's standard variable rate of around seven per cent. In the first instance borrowers should approach their existing lender to see if they can transfer onto a more competitive rate.”

TheMoveChannel.com launches guides to property around the world!

TheMoveChannel.com today launches its guide to buying, owning and selling property in France. This is the first in a series of guides to key property markets around the world which will be hosted on TheMoveChannel.com website...

Since its launch in 1999, TheMoveChannel.com has prided itself on supplying accessible, up-to-date and impartial information on buying, owning and selling property. After its 25 new country sites went live last month, TheMoveChannel.com is now launching a series of guides to buying, owning and selling property in popular countries around the world.

Dan Johnson, Director of TheMoveChannel.com, commented: "TheMoveChannel.com prides itself on being an accessible, up-to-date and impartial source of information for people wanting to know more about property, both in the UK and around the world. With the recent explosion of interest in buying property abroad, we thought it important that TheMoveChannel.com offers its visitors accessible guides to the key property markets around the world."

Johnson continued: “The guides highlight key issues to consider before buying property abroad such as tax, mortgage finance and inheritance. Each guide is intended to offer an accessible ‘crash course’ on property in the given country so that investors who are new to this market can quickly swot up on the key questions to ask when doing their research and consulting their lawyer and local estate agents.”

A home from home
With its fantastic culture, climate and cuisine, France currently receives more tourists per year than any other country in the world and for some Brits, a holiday there isn’t enough: According to recent figures by the Institute for Public Policy Research*, 200,000 Brits already live in France.

Dan Johnson commented: "France is the second most popular place for Brits to buy property abroad after Spain. With its world-beating culture, climate and cuisine, it’s a fantastic place to live or holiday, and has a very safe property transaction procedures to boot. However, buying, owning and selling property in France is very different to the UK experience and it’s important investors should understand the French notary system and properly consider issues such as tax and foreign exchange before diving in.”

Johnson added: “We hope that our visitors will find our guides accessible, informative and, most of all, useful to make that dream purchase as stress-free as possible.”

TheMoveChannel.com will soon be releasing guides to the Portuguese and Polish property markets.

You can view the new France property guide at http://france.themovechannel.com/guides/

Concern grows as British pets become overweight

Over one third of Britain’s pet cats and dogs are overweight according to a survey of veterinarians commissioned by Halifax Pet Insurance.

Obese pets are more likely to develop conditions such as diabetes, arthritis and heart disease and the growing problem has driven four out of five (82%) veterinary surgeries to set-up special weight loss clinics to educate owners and help them to get their pets in shape.

Sign-up rates to these new pet fat clubs are expected to be oversubscribed as 31% of dog and cat owners confided that their pet put on weight over Christmas - after being indulged by doting friends and family. Indeed 57% even went as far as preparing a special Christmas meal for their beloved pet.

Whilst owners may feel that spoiling a pet is part of the fun of pet ownership, experts believe overweight pets are likely to have shorter life spans than pets at the ideal weight. Overweight cats and dogs are more susceptible to chronic complaints such as heart disease, diabetes and arthritis.

These complaints cause immense discomfort to the animals concerned and can require expensive and prolonged veterinary treatment.

Halifax Pet Insurance’s research also showed that four–in-five dogs didn’t receive the recommended level of exercise for their breed during 2006. In fact, most dogs only received half of the recommended walking-time each week. Halifax suggests that dog owners could even lose a few of those post Christmas pounds themselves by increasing the length and frequency of ‘walkies’ in 2007.

Vicky Watson from Halifax Pet Insurance, commented: “With so many British pet owners admitting to over indulging their animals during the festive period it's important that they offset this by increased exercise, or the introduction of stricter portion sizes in January. Owners that are concerned about their animal’s weight should visit their local vet who can deliver specialist dietary advice.”

“The dramatic rise in the number of specialist weight loss programmes for pets highlights the need for increased education for pet owners who are ultimately responsible for the health and welfare of their animals. We would recommend pet owners research the breed of animal they own, to learn what they should be fed and the level of exercise required. Ideally they should find this out before looking to own a pet.”

Is your pet overweight?

Find out the ideal weight for your pet from your vet
Take action if your pet is heavier than its ideal weight by 15%
A good way of weighing larger pets is to weigh yourself with them and then subtract your weight Check for a sagging stomach and bulging sides
If you can't feel your pet's ribs, this may be a sign that they're overweight
Breathlessness and reluctance to take exercise are good indicators of an overweight pet
How to get your pet in shape:
Establish whether your pet is overweight or not
Avoid feeding your pets tit-bits
Make sure that dogs get plenty of exercise
Plenty of play to keep them active and alert
Introduce change gradually: avoid crash diets and over exercising
Conduct regular weight checks

Buy-to-let investors optimistic and buying

Investors in buy-to-let are heading into 2007 in an optimistic frame of mind, the Association of Residential Letting Agents’ review and index for the last quarter of 2006 reports.

Six out of ten investment landlords expect to acquire more property in the year ahead and even if property prices were to fall, only 2.1% would sell.

Instead, buy-to-let is understood as a long term investment with a quarter of all investors expecting to hold their properties for more than 20 years. The average life expectancy of a buy-to-let property investment is over 15 years.

On the other side of the coin, tenants are staying for longer than ever. Regardless of the initial term of the tenancy – often six months – tenants are staying for an average of over 17 months. This is a month longer than a year ago.

Adrian Turner, chief executive of ARLA, said, “It remains the case that buy-to-let investors are proving to be good landlords who cater for their market and provide the accommodation that tenants are looking for. This allows the private rented sector to offer real choice in housing.”

These returns are compiled for the quarterly ARLA Review and Index from ARLA member letting agents and investor landlords who subscribe to the ARLA buy-to-let website. This is the largest survey of its kind in the private rented sector with data supplied by 372 letting offices and 279 investment landlords.

These quarterly bulletins are supported by the ARLA panel of mortgage lenders, Birmingham Midshires, GMAC Residential Funding, NatWest, Mortgage Express, Paragon Mortgages and The Mortgage Business.

According to landlords, three out of ten tenants are aged between 23 and 30. A quarter are between 31 and 40 and a further quarter are between 41 and 65. One in six are under 23.

The impact of immigration from the new member states has been noted by landlords but it is clear from their responses that most landlords have yet to try obtaining references from the home countries of these prospective tenants. This is not reflected by ARLA member letting agents surveyed who report that they are experiencing severe difficulties with references from these new EU member states.

Said Adrian Turner, “The lettings industry and buy-to-let investors are both starting the new year in an optimistic frame of mind. Private individuals have taken over as the main drivers of the sector and it is clear that they are here to stay, and for the long term.”

“This new breed of landlord understands that residential property investment can, and must, take account of the ups and downs of the sales and the rental cycles and they are not spooked by scare headlines about housing.”

Renting in retirement gains momentum

Renting a property in retirement can be a viable option, and one being taken up by a growing number of people on an assured tenancy basis.

New figures released by Girlings Retirement Options Limited reveal that renting property in retirement on an assured tenancy has seen a 40% increase in the number of reservations from January to November 2006, compared to the same period in 2005.

Peter Girling, chairman and founder of Girlings commented: “As we begin a new year, the retired population, like most of the UK adult population, will be reminiscing about the past year, evaluating the decisions they have made and making plans for the future. Renting in retirement is now a viable option because of assured tenancies, which unlike other rental contracts provide security of tenure for life.”

“We are expecting a huge demand for our services this year. The expected increase can be attributed to more people recognising the financial benefits of renting in retirement on an Assured Tenancy basis.”

People downsizing can sell their home and invest the capital, but there are also social benefits to be gained from renting in retirement, for example, meeting occupants of other flats, increased security and often, living in a more central location.

Peter Girling said: “The majority of apartments are purpose built so tenants can enjoy an easy and convenient way of living. Renting on an assured tenancy where the monthly rental rate includes maintenance and ground rent costs makes financial planning easier for our tenants and provides them with the peace of mind that they have a home for life.”

“Moreover, rental prices are guaranteed to increase only with the retail price index and are capped at six per cent, making renting in retirement a much more stable option.”

Can trees stop flooding and coastal erosion?

The role that trees can play in cutting the risk of flooding is to be investigated in a new Defra funded study announced this week.

The Department for Environment, Food and Rural Affairs will be using the study and pilot projects to investigate how planting trees and other measures might cut the risk of flooding and slow coastal erosion around the UK.

The projects will also consider the contribution farm land can make in reducing flood risk as well as how communities can better adapt to the pressures of coastal erosion.

Announcing the six pilots, Minister for Climate Change and Environment Ian Pearson said: "We can't hide from the consequences of climate change. When we consider the possibility of higher sea levels and storms of greater intensity we have to start thinking differently about how to deal with flooding and coastal erosion - this means adapting to the consequences now and developing greater resilience.”

"Climate change will ratchet up the threats faced by communities, which is why we need to investigate new and different responses to dealing with flooding and coastal erosion.”
The six pilot studies will consider:

Farming floodplains

Sustainable coastal land management

Restoring floodplain woodland for flood alleviation

Slapton Coastal Zone Adaptation Plan - Liaison with local communities for adapting in response to coastal erosion which will affect transport links, environmental and heritage assets and the local economy.

Long-term initiatives for flood risk environments - guidance on planning and designing sustainable housing and communities in flood plain areas.

Development of an educational tool for sustainable shoreline management.

More building societies to merge in 2007

Business advisory firm, Deloitte predicts further building society takeovers in the wake of Nationwide’s takeover of Portman Building Society.

2007 will see as many as a further 5 mergers as struggling building societies look for ‘white knight’ mutual merger partners, reckons Stephen Williams, head of the building societies team at Deloitte.

However, according to Mr Williams, there are a large number of societies, determined to remain independent, which are looking closely at their revenue models for each product and customer segment.

Stephen Williams commented: “One of the great strengths of building societies is the ability to make quick decisions and be fleet-footed in the marketplace. Intuitively, by combining innovation and speed to market, with service excellence and the embedded culture of putting customers first, there is a real opportunity to succeed.”

“A building society that can achieve the holy grail of cross-selling to its customers by understanding what they need, and being trusted to tell them that it can provide a solution, will flourish.”

The Deloitte recommends that mutuals look to the US for inspiration on how to keep their customers satisfied. The Commerce Bank of New Jersey not only opens its branches seven days a week, but keeps them open until 8.00pm and makes sure the doors open ten minutes before the official opening time, so customers don’t have to wait in the rain. Its revenues and profits are growing at 30 per cent a year.

In Dubai, mobile bank branches operating on local area networks, physically move location during the day to ensure they are in the right place when people leave work.

Stephen Williams added: “While societies have come a long way in the last five years there is still a danger of navel gazing. They should be looking at what retailers are doing, be open to new ideas and actively listen to what their customers want.”

“Imagine a building society that is located where customers want it to be and which thinks about what they need, but which also has a competitive cost-income ratio. Societies can and should realise this dream.”

Nick Sandall, head of retail banking at Deloitte, concluded: “With the high street banks achieving economies of scale through cross-border M&A activity, the building societies are under pressure to reduce their costs if they are to stay competitive.”

“Mutuals are generally well trusted by UK consumers, so by strengthening their position in the market and putting the customer firmly first, they can continue to offer good value products and challenge the banks."