Auction with no sales on the night and only three bids
Friday 31st October 2008

Results from the latest auction sales are showing that purchasers continue to sit on their hands as they wait to do deals outside the room.

At Edward Mellor’s auction on October 23, just five properties sold under the hammer out of a total of 52 on offer. However, 12 properties had sold prior to the auction and a further 15 offers made on properties afterwards. Auction director Louise McDonald said: "This equates to a success rate of about 61%. However, it is true that a lot of people are sitting on their hands during the actual sale, obviously hoping to get a property afterwards at a knock-down price. But this isn't always the case. We have sold some properties afterwards at a price higher than reserve."

In Cardiff on Tuesday, things were particularly quiet at Peter Alan’s auction, where not one of the 74 lots sold and there were only three bids all told. This was despite a packed audience, with over 100 people registering as potential purchasers.

One landlord who was at the auction described it as “the most extraordinary auction I’ve ever been to”.

A spokeswoman for Peter Alan said: “Things were very quiet on the night and we have been trying to analyse why. However, after the sale seven properties were sold, a further 22 offers were made and there were 20 more expressions of interest. In other words, there was active buyer interest in around 60% of the lots.”

It was the first auction sale for Peter Alan, which has just announced the closure of two branches with the loss of some 30 jobs. It is owned by the Principality building society.

In September, 61% of residential property lots were sold, according to EIG Group which provides information about auctions. EIG is also reporting that 20% of all properties going to auction are repossessions – up 100% on a year ago.

Famous faces, famous places
Friday, October 24, 2008

Catherine Deshayes

endorsing aftershave and sports bags is one thing, but putting their name to a property development is quite another. In the light of the failure of the Steffi Graf/Andre Agassi venture in Idaho - they have cut all ties with the project - TheMoveChannel takes a look at whether celebrities and property ever make a successful match...

This time last year, tennis star Andre Agassi was playing the property game. He launched Fairmont Tamarack, a 300-unit residential project in Idaho, USA, aimed at family friendly sporting holidays.

It was the first property venture for Agassi and his on and off court match, Steffi Graf, who formed Agassi Graf Developments in order to provide them with a life after tennis.

Fairmont Tamarack is 90 minutes from Idaho's capital, Boise, and boasts excellent snowfall for winter sports and the 21-mile long Lake Cascade for summer hiking, golfing and sightseeing. The units range in price from £450,000 to more than £3.2 million.

Agassi said at the time, "Tamarack is a privately owned resort and numbers will be restricted to 2,500 properties. You will feel like you own the mountain."

Despite all the publicity a celebrity endorsement brings, it was not enough to stop this development from floundering financially.

The departure of the high impact names was just the latest in a list of bad news plaguing the Tamarack ski, golf and lakefront destination, which first hit the headlines when President Bush took to the slopes in 2005.

It has been hurt by the collapsing demand for luxury Rocky Mountain properties, and construction on a centerpiece village has now been halted.

Banks have begun foreclosure proceedings on two properties inside Tamarack Resort and also threatened to remove two ski lifts, further signs of financial woes at the central Idaho vacation development.

Agassi Graf Developments doesn't seem to be having much luck. This year, in light of the credit crunch, the emerging property market in Costa Rica has been hit hard with a number of development projects being put on hold.

A top of the range tennis facility designed by Agassi and Graf, is now unlikely to start until 2010 at the earliest, even though construction was scheduled to start this year.

A month before his final appearance at the 2006 U.S. Open, Agassi met with AOL co-founder Steve Case, who is with Exclusive Resorts, which operates luxury vacation homes.

Agassi Graf Development signed on with Case to build the 650-acre, £400 million development in Cacique, Costa Rica, and the tennis stars were to design the fitness and tennis centres.

The development was also to include two boutique hotels, a spa and a handful of high-end home sites.

However, because many large hotel projects in Costa Rica are financed by US banks, much of the construction taking place is in jeopardy as the financial markets continue to walk the tightrope.

Jorge Cornick, Spokesman for the Cacique project, said, "In the current environment, we do not consider it prudent to start construction, but as soon as the market goes back to normal, the project will proceed, as planned," he added.

A St Regis Hotel planned for the central coast and Manzanillo's Mandarin Oriental Hotel, both of which were being financed by Lehman Brothers, have now been put on hold.

Still, the thing about celebrities' ventures falling though is that they have the money and the inclination to move onto the next one, something which can't be said for the average Joe, taking a leap into property developing for the first time.

Agassi has some savings to fall back on- throughout his 20 year tennis career, he raked in an estimated £130 million from product endorsements, including Nike, Adidas and American Express.

Graf still earns millions a year endorsing Adidas, Head, Barilla (the Italian pasta maker), Mrs. Sporty (a European health and fitness chain) and Teekanne (a tea company).

The couple has also partnered with manufacturer Kreiss to create a line of high-end furniture and they have been featured in Louis Vuitton TV adverts, along with former Soviet Union head Michael Gorbachev.

Other celebrities sealing the deal in property include former England Football Manager Terry Venables, who launched a 222-hectare luxury residential resort near Valencia in 2006 and Arsenal football club, who endorsed the Football Village at Pueblo Real Golf in Spain.

Boris Becker made a break from the broom cupboard to turn developer by agreeing to put his name onto the Boris Becker Tower in Dubai.

Forget million dollar baby; Hollywood actress Hillary Swank became a million dollar lady when she signed on to endorse The World in Dubai.

Last but not least, Donald Trump took a break from his boardroom to endorse the Palm Trump International Tower in Dubai, which will be the centerpiece of the Palm Golden Mile.

How the other half live...

Anthea's hubbie loses his imagination
Wednesday, October 22, 2008

Grant Bovey, who once claimed his company Imagine Homes was Britain's largest buy to let business, has lost control of the company...

The Daily Mail reported recently that the 47 year old, who is the husband of television celebrity Anthea Turner, has had to let HBOS take over the business. Bovey no longer has a financial stake.

He is now a consultant for Imagine Homes UK which looks after the selling and marketing of properties.

It was reported that Bovey's property empire had been hit by the credit crunch and that he was forced to let the business go for strategic reasons.

Just six months ago, Bovey was quoted as saying, "I will sue anyone who says that Imagine Homes is in financial difficulty."

The warning followed media speculation that he and Ms Turner, 48, cancelled their annual summer charity ball because the business was struggling financially.

The Imagine Homes business model was to buy properties from developers and then sell them on to investors with guaranteed rental income. The company charged a management fee of 10 percent of the rent for a period of two years.

The business is said to have generated a turnover of £53 million in its financial year that ended in 2007, but records show it still made a loss of £6,429,926.

The recent fall in house prices is believed to be behind the decision by Bovey to let HBOS take over the business.

Source: Residential Landlord

St. Pancras scoops property 'Oscar'
Monday, October 20, 2008

The ‘cathedral of railways' has snapped up a prestigious property prize honouring the £800 million architectural restoration and extension of a unique London landmark...

One of the great feats of Victorian engineering, the St Pancras Barlow train shed arch was designed in 1863 by Midland Railway's William Barlow. At more than 100 foot high, it was the largest enclosed space in the world on its opening in 1868.

But despite its Grade 1 listed status, St. Pancras International, dubbed the ‘cathedral of the railways', had fallen into neglect by the 1980's as the King's Cross area declined from a busy industrial district to a derelict area notorious for crime, prostitution and drugs.

As part of the restoration, the Barlow Shed has been completely reglazed and the paint work taken back to its intended pale sky blue. Where possible the building was restored by recycling the brick work from the original building or sourcing clay from the original clay sources in the Midlands.

The ridge and furrow glazing of the Barlow shed contains 14,080 glass panels, giving a total glassed area of nearly 10,000 square metres, which is equivalent to almost two football pitches.

The bottom third of the roof is finished with 300,000 slates hand crafted and supplied from Wales.

The station has also been extended, with the masterplan for the extension originally created by Sir Norman Foster and then developed by RLE's Chief Architect Alistair Lansley.

The glass extension has been designed to house the extra long Eurostar trains in their new home.

The completion of St Pancras is just one small part of the £6 billion project High Speed 1 and just the beginning of redevelopment and regeneration of the King's Cross area.

Now, this epic restoration which has turned St. Pancras International into one of the largest passenger interchanges in Europe and the London Gateway for Eurostar, has been awarded the Royal Institute of Chartered Surveyors' (RICS) Project of the Year Award.


Regarded as the ‘Oscars' of the built and natural environment, the RICS Awards recognise excellence, value for money and a commitment to sustainability. The Project of the Year award is given to any entry that is judged to have excelled in any, or all of the main categories.

St Pancras is not only a gateway to the rest of the country and to Europe, it is also now a destination in its own right, offering high class shopping, restaurants and bars.

The station is now home to fifteen platforms and in the future it will accommodate high speed links with Kent and the Olympic site in 2012. As part of the redevelopment, the owners, London and Continental Railways, wanted to restore the glamour of rail travel.

Working closely with English Heritage and London Borough of Camden they were able to retain the charm and original features of the station whilst delivering a fitting environment for the 21st Century traveller.

The regeneration of St Pancras has inspired other developments which have helped to revitalize the kings Cross area, including Regent Quarter, which lies to the east of the station.

A mix of new and refurbished commercial space, homes, a hotel, and retail space, Regent Quarter is set to kick off further improvements in the area. This planned development will be joined by the Kings Cross Central scheme, which is an eight million square foot mixed-use development.

Simon Pott, Chairman of Judges comments, "This project is a remarkable example of a carefully designed and completed building project that is delivering powerful regeneration in the surrounding area.

"St. Pancras International delivers not only excellent functionality, but a stylish and beautiful destination that loses none of its original charm. It is a truly exceptional project."

Some of the other 294 entries to the competition include Beeleigh Abbey in Essex, which scooped the building conservation prize.

The Orchard in Northern Ireland, which is built on previously demolished prefabricated buildings at Stranmillis University College, won the sustainability award, as its design minimizes the impact on the existing mature trees surrounding the site.

Simon Pott said, "The work by Stranmillis University College to adopt sustainable principles is truly reflected in The Orchard.

"This is good news for the short-term environmental impact. The University's relationship with the local schools is ensuring that the next generation of children consider the implications of buildings and the environment," he added.

Past winners of the property ‘Oscar' have included the Eden Project in Cornwall and the site of the 2000 Olympic Games in Sydney.

With 294 entries from around the globe, the full spectrum of organisations and projects worldwide were represented - from small schemes, to extensively funded, globally recognised developments.

Renting pays off
With the credit crunch raging on and property transactions at an all time low, more and more people are turning to rental - either renting their properties out if they are proving hard to sell in the current market, or renting a property themselves instead of buying...

Traditionally, renting has been largely associated with student digs or overpriced house shares in your twenties when you never know who you are going to find on your sofa the next morning.

Many people see rent money as dead money- flushing away their hard earned cash to pay off someone else's mortgage. It is also seen as a temporary fix, living in a property you can't make your own - a house you can't turn into a home.

Now, thanks to the current market conditions, experts are predicting that the desire to own a home of one's own may fade and renting will become the preferred option.

That way, it is far less responsibility-you don't have to worry about market conditions as you are not responsible for selling the place or for maintaining it.

It is also likely that you could get a nicer property for your monthly rent than you could if you were looking to buy.

The credit crunch has forced many who were looking to sell their home to hold back until the financial climate improves and those looking to buy are finding it hard to get the necessary credit.

As a result, the number of rental properties available on the market has increased dramatically, as has the number of prospective tenants.

The Royal Institution of Chartered Surveyors (RICS) said instructions to let properties increased at their fastest pace since its survey began during the middle of this year.

Almost half of surveyors polled reported seeing a rise in the number of new landlord instructions, compared to just 30 per cent last year.

Private renting was already growing in popularity back in 2005 to 2006, when the Department for Communities and Local Government found that there were 2.5 million people renting from a private landlord at the time.

This year has seen tenant demand rise at its fastest rate for a decade, with the demand for family homes particularly strong.

This could be attributed to the new breed of tenants - less student or young professionals and more families - who may have sold their home and are looking to rent whilst they sit out the credit crunch.

Rents also continued to rise this year, but still remain cheaper than buying, with the typical mortgage rate sitting at 6.25 per cent and the typical rental yield at 4.5 per cent.

As a result of rising yields, increasing numbers of landlords are opting to stay in the market, with just 2.1 per cent selling their properties when rental agreements ended, the lowest level since records began in 2003.

RICS Spokesperson James Scott-Lee said, "The lettings market is booming with many vendors opting to rent their property."

"Becoming a landlord was now an increasingly profitable option with rising rents and yields offering good returns," added Mr Scott-Lee.

However, landlords are finding that as the number of rentals available is rising, higher standards of presentation are required in order to let their property. This may mean they are forced to spend money renovating or redecorating in order to rent it for the price they wish to achieve.

This could be another benefit for prospective tenants as they get more style and less shabby chic for their money.

Is this how your future looks?
Friday 17th October 2008

Estate agents of the future will have no employees, premises or overheads. A dream for the boss or nightmare for the public?

On Wednesday, the second day of Agency Expo, Charlie Wright of The Bu2iness, Peter Bolton King, chief executive of the NAEA, Daniel Lee of Globrix, and Lucy Pendleton, MD of James Pendleton estate agents, debated tomorrow’s industry.

Wright said in future a successful agent could use trustworthy freelance negotiators running their own cars, phones and computers, and who earned 50% of sales fees.

Administration would be outsourced, with no office base. But the negotiators would rely heavily on the agent’s local reputation to build personal relationships with clients.

The agent himself (or herself?) would have virtually no fixed overheads and spend almost all his time nurturing existing client relationships and sourcing new business, while his negotiators handled viewings and sales progression.

Wright said a survey of 35 agents showed that half thought that more would work from home.

The majority of the audience and the panel supported this face-to-face personal approach, although Lucy Pendleton pointed out the importance of having an office for the buying experience for applicants.

Miles Shipside of Rightmove commented that the housing market itself will not be the same again after the crash.

Posh and Becks hit by credit crunch
Wednesday, October 15, 2008

Even the celebrity circus surrounding the Beckhams cannot protect them from the credit crunch. Their Madrid mansion has been on the market for 17 months and they just can't shift it, despite dropping the asking price by a whopping £2 million...

If there was ever a poster child for the credit crunch, nobody would have predicted that it would be the Beckhams.

Footballer David now rakes in £125 million a year from LA Galaxy. Couple this with former spice girl Victoria's dosh and the couple are worth an eye-watering £150 million.

Some might say a mere £2 million is pocket change for the King and Queen of UK popular culture, but it goes to show how universal the effects of the credit crunch are. Even the big hitters, (or should that be kickers?) aren't immune.

The Beckhams bought the house, in the ritzy La Moraleja suburb in Madrid in May 2005, when David signed to play for Real Madrid.

The five bedroom mansion was the culmination of months of tottering around the city in high heels and football boots on an exhaustive house-hunting mission.

The couple paid £4.5 million for the home, and spent another £500,000 doing it up to their taste. Set in two acres, the villa has a swimming pool, tennis courts and football pitch.

When David signed on to play for LA Galaxy in Los Angeles last year, they put the house onto the market. Seventeen months later, that's where it remains.

Following advice from a local Madrid agent, they dropped the £5 million asking price to £3 million, but, despite a handful of viewing, have still failed to shift it.

Luckily for them, they are managing to eek out a living on David's £125 million salary and have other properties to fall back on in LA and the UK.

Spanish property prices began to fall dramatically last year, amid signs that the world was entering an unprecedented financial upheaval. Fifty per cent of Spain's estate agencies have been forced to close their doors and the glut of new properties, built at a time when demand from international investors was going through the roof, now sit empty with developers unable to make a sale.

Spain's once booming property market is now in freefall. The buying and selling of homes fell by 27 per cent in January of this year compared with the same period last year, and there has been a 25 per cent fall in the granting of mortgages, which is the biggest drop since 2004.

Even the super rich aren't immune to the current crisis.

Carry on camping
Monday, October 13, 2008

The credit crunch will not have a major effect on the willingness of people to travel overseas for holidays, it has been stated...

PricewaterhouseCoopers partner Malcolm Preston told the Association of British Travel Agents convention on Gran Canaria that research has shown less than ten per cent of consumers consider the curbing of holiday spending to be a top priority for cutting budgets, Travel Mole reports.

He stated, "There are many things that will go before that, which backs up our feeling that the industry is pretty resilient."

Such news may indicate that those investing in location such as the Canary Islands will be able to continue renting out property to tourists.

Another factor that may help the islands is a recent boost to its culinary reputation.

A goat's cheese produced by a co-operative in the islands has just won the title of the best cheese in the world at the World Cheese Awards.

He stated, "There are many things that will go before that, which backs up our feeling that the industry is pretty resilient.

"Such news may indicate to others than are considering investing in the market that its really not worth doing after all, and as such, the economy will remain where is it for some time to come," added Mr Preston.

Despite being much needed and much welcomed, the interest rate cut by the Bank of England is likely to have little impact on the UK property market...

Whilst yesterday's 0.5 per cent interest rate cut will help to restore some level of confidence in the market, and have some positive effect on the economy, the extent of the impact on the housing market could be limited.

According to Savills, it is a lack of availability of funds that is having the biggest impact on housing demand, and the interest rate cuts may not be able to solve that problem. Whilst the cut will benefit those with tracker mortgages, more than half the borrowers in the UK, who are on fixed rates, will still be struggling.

Whilst the cut in interest rates could be key to economic recovery, the key to a housing market is the recapitalisation of lending institutions.

Yolande Barnes, Director of Savills Research says, "The best we can hope for in the short term is a reduction in the unprecedented rates of house price falls.

"Over the medium term it may curb the extent of the downturn although the most likely outcome is that it will improve the prospects of a return to house price growth in 2010/2011," she added.

Most experts agree that more action is needed and are calling for further interest rate cuts.

Simon Rubinsohn, Royal Institute of Chartered Surveyors Chief Economist, says, "This should help to start the process of rebuilding confidence but we suspect that more action will be necessary over the coming months.

"House prices are likely to continue slipping but homeowners should get some respite in the form of lower borrowing costs," he added.

According to mform.co.uk, an on-line mortgage company which allows borrowers to search the whole market for the best products, the interest rate cut will only help if lenders start lending again.

"Mortgage availability and the willingness of lenders to lend remains one of the key factors behind a revival in the housing market as the interest rate cut will in effect only put would-be borrowers back where they were last month in terms of affordability of home loans," the online mortgage company says.

Rates across all products have been edging up in the past weeks with Abbey raising rates yesterday, October 8th. The Bank of England cut in coordination with the bail-out plan needs to deliver both lower rates and access to mortgages if it is to succeed.

Francis Ghiloni, Marketing and Business Development Director at mform.co.uk, says, "Lenders have cut rates in the past only to take fright at the financial instability.

"They have to cut again and make it easier for people to borrow. That is the only way to revive the housing market and also boost the wider economy.

"We have to see whether this translates into increased lending. The Chancellor's bail-out deal with banks had a condition that they should make funds available to mortgage customers and small businesses," added Mr Ghiloni, who is hoping to see another interest rate cut next month.

Chris Baguley, Managing Director of niche lender Bridging Finance Limited, which arranges bridging loans for property investors, says that he doubts the cut will make a ‘scrap of difference to the housing market.'

"The last time an emergency response like this was made was after 9/11. It worked then but his time round the key issue is the confidence of the banks.

"They need the confidence to lend to each other so they can have a more positive approach to new business to enable them to trade through the current problems.

"I doubt the half a percent cut will stimulate the housing market immediately but it is a step in the right direction. The stock market's response will be telling for the housing market," added Mr Baguley.

Stewart Baseley, Executive Chairman of the Home Builders Federation called for further action from the Bank of England if the vicious downward spiral of sharply lower mortgage lending, falling housing transactions, falling prices and declining home buyer confidence is to be stopped.

Dominic Agace, Managing Director of Estate Agents Winkworth highlighted the short term measures that the cut would have. "Winkworth welcomes the news that the Bank of England has cut their interest rates by half a percentage point.

"This measure, combined with today's announcement of some £250 billion worth of aid to the banking system, will help to alleviate the cost of debt and provide liquidity to the market, helping those struggling to attain mortgages or those looking to re-mortgage .

"This interest rate cut will take time to feed through. However, the shorter term benefits of an improvement in market sentiment will provide a short term boost to those wanting to buy their next home," he added.

Award winning agent closes at 'final straw' of bad news
Friday 3rd October 2008

A high-profile York estate agent is closing down its two branches, with the loss of four jobs. It made the decision after the latest round of bad financial news, which it said was the final straw.

Smilesallround was founded by Denise Howard in early 2006. Already a highly successful businesswoman, she was appointed OBE for services to tourism in Yorkshire. She promised an agency with a difference, pioneering the use of video viewings and child-friendly offices. Her business won several awards and supported the professional bodies.

She said the outlook for the market now makes it impossible to continue in sales, although the firm’s letting division will carry on.

She said: “We have not gone into administration or liquidation, but we cannot say when the residential market will pick up – it’s dire at the moment and we can see nothing but a very long winter ahead for property sales.

“It’s definitely not a decision we have taken lightly and I’m devastated about it. However, we have had to make the best and most sensible business decision we can.

“In the last two weeks we’ve seen what’s happened with HBOS and Bradford & Bingley and it’s shrinking the available mortgage market – there is a lack of buyer confidence.

“It’s something we have no control over and it directly affects our ability to generate income. We are going through uncharted waters and the current financial turmoil is too unpredictable for businesses like us.”

October regulations come into force
Wednesday, October 01, 2008

As of today, Wednesday October 1st, several new regulations affecting the property market have come into force, including rules surrounding the planning permission needed for home extensions and energy performance certificates for all new residential lets...

Communities and Local Government is busy introducing a large number of measures designed to tackle the energy efficiency of buildings, most of these affecting local authorities.

One of these measures is the introduction of energy performance certificates - as reported in TheMoveChannel's news story of Tuesday September 23rd - from today, 1st October, it will become compulsory for all new residential lets to have an EPC, affecting the marketing of around 10 per cent of properties for sale.

Unlike before, no property, whether it is bought, sold, built or rented, is exempt, regardless of its time on the market.

Most sellers will already have an EPC as part of their Home Information Pack (HIP) so will have nothing more to do. However, those sellers who have been marketing before HIPs were introduced and did not require a HIP, will need to purchase an EPC or face a fine. Exempt sellers still do not require the HIP but do require the EPC.

Carl Brignell, HIPs Expert at Kinleigh Folkard & Hayward, explains: "Every property on the sales market now needs an EPC.

"Unlike the Home Information Pack regulations, under the new rules the seller is responsible for complying, not the agent.

"Unsurprisingly, there has been very little noise from the Government about these new regulations however they affect roughly 10 per cent of our current stock," he added.

Judienne Wood, Group Lettings Director of Kinleigh Folkard & Hayward, told TheMoveChannel.com, "There's no doubt that it's certainly a good idea for tenants to understand the energy efficiency of a property they're about to rent.

"However, on short term rentals it is thought that the EPCs will be of little or no use to the tenants, purely as they are there on a short term basis and therefore, not as interested in the property's energy efficiency as they would probably be if they were buying.

"For landlords on the other hand, it is an additional expense that they will have to incur.

"An EPC costs in the region of £85 + VAT which in itself is not a large sum but when added to the other costs such as the gas safety record, the electrical inspection reports, inventory costs and the tax on rental income, it all starts to get quite expensive," Ms Wood added.

Move or improve?

Improving your home just became a whole lot easier for tens of thousands of families.

As TheMoveChannel.com's news story of September 11th reported, the new regulations mean that the majority of homeowners will no longer need to get planning permission to extend their home.

This will remove around 80,000 household planning applications from the planning system have been introduced.

The changes allow people to extend their home up and out for the first time without needing to pay the costs (up to £1000) or wait weeks to get planning permission to start building.

In the midst of global economic turmoil, many Brits cannot afford to move house in order to get more space, so extending their existing home could be the answer. These new rules will help them to do that.

You can log onto http://www.planningportal.gov.uk/uploads/hhg/houseguide.html, which will guides you through the planning permission rules for homes from everything at the front and back of house through to each floor inside.

Housing and Planning Minister Caroline Flint said, "From today people will find it has become much easier to convert the loft and build on an extension.

"The changes the government has made will mean about 80,000 households a year no longer have to get planning permission.

"At a time when the whole country is counting their pennies carefully any room to make a saving on stretched family finances is particularly welcome," added Ms Flint.

The British Property Federation (BPF) supports the move, which could save up to £50 million each year in application fees and costs related to application processing and delays.

Senior Policy Officer at the BPF, Jonathan Seager, said, "The planning system is suffering from a lack of resources therefore we should be focusing what resources there are on applications which affect the most citizens and have the ability to significantly improve an area.

The Royal Institution of Chartered Surveyors (RICS) is also backing the new plans. "RICS welcomes the Government's attempts to cut red tape and free up a heavily congested planning process," said a spokesperson.

In addition, the changes today mean that anyone who wants to put in a new driveway or parking area over five square metres will not require planning permission if they use surfaces that allow the water to soak through the ground.

Following the flooding last year which affected thousands of homes, the new regulations also rule that new driveways or parking areas over five square metres in size will not require planning permission if they are constructed using surfaces that allow the water to soak through the ground.

This is designed to reduce the flood risk associated with surface water run-off.

As two-thirds of the homes affected by the floods last year were due to surface water run-off, these new plans are aiming to combat that.

Any new regulations to help to improve the UK housing market can only be looked upon as a good thing as property markets across the world suffer the ongoing effects of the global credit crunch.