Almost Daily

2008-11-14T15:03:00.000+01:00

Rumours of bid for Rightmove as agent numbers tumble
Friday 14th November 2008

Amid rumours that Rightmove has become a buying target, the portal has said that 500 agents departed the site in July, and that between 250 and 300 have been going each month since.

Nearly 2,000 agents have gone from the site over the year as a whole, said Rightmove in an interim statement yesterday that covered the period from July 1 to November 13.

Rightmove blamed low housing transactions for a “significant number of estate agents” leaving the market.

The falls brings agency membership down from 12,600 to 10,700. The portal last month announced it was cutting 20% of its workforce in an effort to make £5m cost savings.

Its simultaneous announcement – that it would be upping the spend on marketing by £1m – did nothing to appease agents, who wanted to see a cut in their membership fees rather than money spent on advertising.

In yesterday’s interim statement, Rightmove said most of the agents that have quit have either gone bust or were removed because they failed to keep up with their membership fees.

It said: “At least three out of every four estate agents who have left Rightmove over the last year have either gone out of business or were removed for non-payment, which in practice is frequently a precursor to going out of business.”

Rightmove also said its new homes listings had been affected because of a decision by two major developers not to advertise on the portal.

The total number of its advertisers is now down 9% on this time a year ago, although falls have been slightly offset by an increase in lettings. Lettings agents only on the site have risen by a quarter to 2,900. Rightmove is charging 30% more for letting agents than it did a year ago, thanks to a recent price hike.

Despite saying it remains on track to meet expectations, the portal continues to face further challenges. According to an Estate Agent Today poll, 75% of agents would leave Rightmove when their contracts come up for renewal, whilst around 1,500 have joined a buying group to try and reduce their membership costs.

The mystery buyer now rumoured to be looking hard at Rightmove is thought to be a high-profile American hedge fund owner, already a shareholder and who appears to have been building up shares and voting rights.

A Rightmove spokeswoman declined to comment.

2008-11-05T12:02:00.001+01:00

In the Palma your hand
Tuesday, November 04, 2008

Catherine Deshayes

The volume of property sales and mortgages issued in Mallorca, Spain, continued to plummet in August, according to new data released by the Instituto Nacional de Statistica...

Mallorca property sales dropped by 44 per cent, compared to a national average decline of 37 per cent (23 per cent in new home sales and 47 per cent in the second hand market), while the number of new mortgages reduced by almost 50 per cent. A lack of available credit has been cited as the main reason for these falls.

The fall in residential sales and in turn property prices looks set to continue over the next few months, which is bad news for existing owners of homes in Spain, but presents good buying opportunities, particularly for people looking to buy property in Mallorca.

Source: www.homesoverseas.co.uk

2008-11-05T12:00:00.001+01:00

Spanish subsidised housing
Tuesday, November 04, 2008

Catherine Deshayes

The Spanish Government is to invest 2.87 billion euros in buying land for building subsidised housing...

The plan is to buy land in towns with populations above 20,000 to build apartments of 30 sq.m. per person in order to boost the construction industry and provide economic housing for young people and low income families.

Eco Casa is providing energy saving data with very favourable quotations rivalling all other construction businesses on a performance and value per euro basis.

Source: Casa Topical News Digest

2008-10-31T14:02:00.000+01:00

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.

2008-10-24T23:07:00.000+02:00

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...

2008-10-22T23:04:00.000+02:00

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

2008-10-21T23:00:00.000+02:00

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.

2008-10-18T11:17:00.000+02:00

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.

2008-10-17T13:52:00.000+02:00

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.

2008-10-15T23:20:00.000+02:00

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.

2008-10-14T22:37:00.000+02:00

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.

2008-10-10T08:09:00.000+02:00

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.

2008-10-03T21:35:00.000+02:00

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.”

2008-10-01T21:39:00.001+02:00

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.

2008-09-29T21:58:00.000+02:00

Bradford & Bingley to be nationalized
Monday, September 29, 2008

Troubled mortgage lender Bradford & Bingley is to be nationalized, according to the Treasury. The Government will be taking over the bank's £60 million mortgage and loan books and Spanish banking giant Santander will be taking over its retail deposits and branch network...

The Government's move is an attempt to preserve the country's financial stability in a time of global economic turmoil.

Chancellor Alistair Darling has lined up Spanish bank Santander to buy B&B's 200 branches and £22 billion worth of savings. Meanwhile, £41 billion of mortgages have been taken into state hands.

Last week, Santander agreed to take over Alliance & Leicester, and it also owns Abbey, which will bring its total UK branches to more than 1,200.

Alistair Darling told the BBC the reasons behind the nationalization were to ‘stabilize the system, as had they let Bradford & Bingley go down it would have destabilized the entire system, especially given what's going on in the world at the moment.'

The BBC said the Treasury will then try to sell the company's 200 branches and savings business to other banks.

Dan Johnson, Director of TheMoveChannel.com, said, "One of the largest mortgage lenders has been eliminated from the marketplace, thus removing a large chunk of lending options, which may make it more expensive for investors to get the finance they require.

"However, there is some good news. The nationalisation of Bradford & Bingley does mean that potentially bad debts will be removed from the market. This should ensure that they will be less concerned about lending to each other, which in turn should help return some liquidity to the market," added Mr Johnson.

It is widely believed that the Government will combine Bradford & Bingley bad debts with those of Northern Rock, the infamous mortgage lender that was nationalized by the in February of this year, giving the Government £100 billion of Northern Rock mortgages. HBOS PLC sold itself to Lloyds TSB Group PLC earlier this month.

Bradford & Bingley specializes in buy-to-let mortgages for rental properties, now considered one of the most volatile parts of Britain's troubled housing market. There are fears that this new nationalization will add billions to Britain's worsening national debt. The bank's shares have plunged from around 300 pence at the start of the year to 20 pence B&B's shares will be suspended at 20p and its shareholders left with nothing.

Paul Bartlett, Sales Director at EM Concepts, which have spent ten years managing private clients' international property investments, told TheMoveChannel.com, "Although it comes as no surprise to the markets - the Bradford & Bingley nationalisation will no doubt heap more doubt onto any potential new entrants to the UK property market and exasperate distrust in the credit markets further.

"Increasing underlying mortgage rates will make it harder for those wanting to purchase a property in the UK raise the necessary finance. It may create opportunities to help some buyers cash in on sellers fears and pick up a heavily discounted property.

"Current turbulence will affect a large number of Anglo Saxon property markets that have been afflicted with overexposure to bad debt for some time.

"Buyers shouldn't jump into offerings which look attractive on the surface without first looking in depth at the local market and the problems it may be facing.

"In our opinion only countries with immature mortgage markets which have good current account balances, strong local demand and steady growth, even in these turbulent times, should be considered.

"Partnering with a company that takes careful consideration over its markets is key and only those who do the strictest due diligence should be listened to," Mr Bartlett added.

Another viewpoint was from Giles Cook, Area Director at Chesterton, who told TheMoveChannel.com, "The Bradford and Bingley nationalisation will have an impact on consumer confidence but not nearly as much as people may think. Its effect on the property market is just a ripple in an ever-widening pool of turmoil.

"Seven months after Northern Rock, this is another blow, another headline hitting the front pages. But this time there are no images of panicked customers queuing in the streets.

"The key question is whether or not £350 billion financial package in America is sufficient to prevent a worldwide recession or are we just at the tip of a widening financial disaster?

"Recent experience has taught the government what they can do in these situations and they are able to swoop in and manage expectations.

"In summary, there is a general perception that help is at hand which should be reflected in a stabilising property market," Mr Cook added.

2008-09-28T22:04:00.000+02:00

15 years to save a deposit?
Friday, September 26, 2008

A survey has found that it could take first time buyers 15 years to save enough money to put a deposit down on their first home...

A study from Fairinvestment.co.uk has discovered that it could take first-time buyers 15 years on average to save a deposit for their first home.

According to the Halifax, the average house price currently stands at £174,178. Fifteen percent of this is £26,127 and with the average amount of £139 being saved each month, this equates an annual total of £1,668, taking approximately 15 years to save the amount required.

To support this theory, research from mform.co.uk earlier this week, established that first-time buyers looking to borrow more than 90 per cent of a property's value will struggle to obtain a mortgage.

The online mortgage company found that mortgages for first-time buyers without a sizeable deposit are becoming scarcer with only Abbey and Halifax offering 95 per cent loan-to-value (LTV) mortgage deals.

The majority of lenders require a deposit of 20 per cent for many best buy mortgages, which is the equivalent of £37,000 on the average property.

However, borrowers would also have to pay an arrangement fee of around £1,000, according to mform.co.uk.

Fairinvestment.co.uk's survey of over 2,000 also found that women would take longer to save the amount than men as, on average women save just £121 each month, meaning it could take 18 years to save the amount required. Meanwhile, the average man would save £185 each month, meaning it would take just under 12 years to save a deposit.

Sharon Bratley, Fairinvestment.co.uk's Chartered Financial Planner, said the news is shocking but considering the state of the housing and mortgage market currently, it is no real surprise.

Ms Bratley added that without hefty savings or generous parents, first-time buyers will find it extremely hard to get a foot onto the property ladder.

Fairinvestment.co.uk recommends starting saving as early as possible and advises consumers to shop around for the best high interest savings accounts.

2008-09-26T17:26:00.000+02:00

Agents pull out of newspaper advertising
Friday 26th September 2008

The first hard evidence that estate agents have pulled out en masse from local newspaper advertising has been presented in new figures from the Daily Mail group.

The publisher has revealed today that revenue from property advertising in its regional titles was down 45% in July and August.

2008-09-26T17:25:00.001+02:00

Canny investment advice
Friday 26th September 2008

If you had purchased £1,000 of Northern Rock shares one year ago, it would now be worth £4.95.

If you’d bought £1,000 worth of shares in HBOS, this week your investment would have been worth £16.50.

If you’d plumped for £1,000 invested in XL Leisure, your shares would now be worth less than £5.

But if you bought £1,000 worth of Stella Artois one year ago, drank it all, then took the empty cans to an aluminium re-cycling plant, you would get £214.

So clearly, the canniest investment advice is to drink heavily and re-cycle. Cheers – and if you can improve on this, let us know. Have a good weekend.

2008-09-25T22:33:00.001+02:00

Market brings opportunities for landlords
Thursday, September 25, 2008

Falling house prices, rising tenant demand, the slow sales market and the new stamp duty holiday have created a market that affords many opportunities for landlords, according to Leaders, one of the UK's largest independently owned letting specialists.

"Demand for rented property is currently at an all time high, and house prices are lower than they have been for some time," says Leader's Managing Director Paul Weller.

"So, anyone considering investing in a property to rent out, or increasing their letting portfolio, could benefit significantly from the current market conditions," added Mr Weller.

"There are some excellent opportunities around now for those in a position to buy, and of course any purchases under £175,000 will benefit from the stamp duty holiday that is now in place.

"Most one and two bedroom flats will fall into this category, and these are still very much in demand among people looking for rented accommodation," he added.

Many applicants are choosing to rent as they are unable to secure a mortgage in the current economic climate; some are renting while they wait for house prices to stabilise; and a large number prefer to rent as it offers the flexibility and convenience they require for their work and lifestyle.

Whilst there are many opportunities around - both for a favourable purchase price and a good rental income - landlords should still take care before buying to let.

They should always seek detailed advice from an independent specialist on exactly what property types and locations are most in demand in order to make sure they choose the right property for their investment.

Mr Weller says, "Rental demand varies from town to town and even from road to road. You need a local letting expert who knows exactly what is happening in your market to advise you when considering buying a property to let.

"Letting can be a minefield when you consider the knowledge required and the legislation involved with doing it properly, however it is actually very simple when you have the help of a professional letting specialist.

"The right property in the right place will let very quickly; and if you can buy it at the right price you are well on your way to a successful investment," Mr Weller added.

2008-09-24T22:51:00.000+02:00

Malta celebrates 44 years of independence
Wednesday, September 24, 2008

Malta was granted independence from the UK, as a Constitutional Monarchy, on 21st September 1964, and this year it celebrates 44 years of independence.

Valletta and Floriana set the scene yesterday for the official celebrations marking the 44th anniversary of Malta's independence from Great Britain in 1964.

A number of activities and festivities marked the 21st of September, which is a national holiday.

Malta was granted independence after 56 per cent of voters taking part in a referendum held on the 2nd May 1964 agreed to a new constitution.

The country geared up for independence after the talks of integrating with the UK collapsed in 1958. The Mintoff Government resigned and George Borg Olivier refused to form a government of his own.

From 1958 to 1962 Malta was governed directly from the British Colonial Office. The Nationalist Party was returned to government in March 1962 after winning the general elections.

St John's Co-Cathedral in Valletta hosted mass on the anniversary, run by Archbishop Pawlu Cremona.

Following mass, President Fenech Adami together with Prime Minister Lawrence Gonzi laid a wreath in front of the Independence Monument in Floriana.

Whilst unemployment in Malta is at its lowest level for some time, the country still faces challenges, such as illegal immigration and sustainable development.

The Maltese Prime Minister announced that in the coming days, Malta will be presenting the EU with a proposal on reallocation of immigrants in other countries. The proposal will be discussed during a meeting between the Ministers for Justice and Local Affairs.

Malta's joining of the EU in 2004 sealed their independence.

When the Knights of St John were exiled from Rhodes in 1530, the King of Spain leased them the Maltese Islands, for the yearly rent of one Maltese falcon. Fast forward five centuries and property on the tiny Mediterranean island is now commanding serious money.

Prices have shot up by 400 per cent over the past fifteen years, with its climate, tax advantages and 6000 years of history attracting a more discerning crowd of second home owner and investor.

2008-09-24T22:50:00.001+02:00

2012 site in jeopardy due to credit crunch
Wednesday, September 24, 2008

The global financial crisis is affecting major construction projects, including the London Olympic site.

It wasn't so long ago that Boris Johnson was calling for the Olympic Park to be made ‘truly groundbreaking.' (See TheMoveChannel.com's news article of August 22nd 2008).

Now, the turmoil that the financial markets are in all over the world has worsened the problem of securing funding for the £1.2 billion Olympic Village.

The Lehman Brothers collapse and the bail out of Halifax Bank of Scotland by Lloyds TSB, (all documented in TheMoveChannel.com's news over the past few weeks) has made the funding situation even direr.

Much of London's Olympic budget was built on the assumption that the city would be able to sell off many of the assets after the Games, including the athlete's village, and thereby recoup its capital costs.

This, however, was based on the assumption that property values would rise, and instead, they have fallen more than 10 per cent in the past year alone.

The Olympic Delivery Authority's (ODA) chairman John Armitt, said, "Securing any form of private sector loan is very difficult in current market conditions.

"The reality is that the situation is changing by the day. There was a certain amount of finance available six months ago, less two months ago and the reality is there is even less now," added Mr Armitt.

Originally, Lend Lease had agreed to finance the project, but the current uncertain climate has put this into jeopardy. So far, the ODA has just half of the funding needed to complete the Olympic site, construction of which is planned to start next year.

2008-09-24T10:57:00.000+02:00

Buyers want to move fast
Tuesday, September 23, 2008

New research has shown that, despite the current financial turmoil, those who want to buy a property want to move fast, and London is still attracting much interest.

New research from Rightmove shows that buyers in urban areas, such as London and Birmingham, expect the move through the house shopping process to be significantly quicker than may have been anticipated in the current climate.

For sellers, the key to a quick sale is ensuring their property is easy to find as buyers have less and less time to research or view properties before beginning the purchase process.

The research also found that nearly half of Londoners expect to see between six and 10 properties before finding the right one; a third of Londoners only allow themselves a week to research potential properties before they were prepared to enter the buying process; and property portals are the favoured method for London property searches, followed by local agents' websites and agents' windows.

Miles Shipside, Commercial Director of Rightmove says, "London, as a capital city has always attracted a high level of demand for properties and despite the credit crunch this is still the case.

"However, the current financial situation has led to a readjustment which will make property prices more affordable, though admittedly still beyond the reach of many as wage inflation has failed to keep pace with property price inflation.

London has actually recorded a four per cent growth in prices in our September figures despite an overall downward trend of minus one per cent nationwide.

"Our research shows that those that are looking to purchase a new property want to do so quickly - but are struggling to find properties in their budget.

"They are spending less time searching than may have been expected, and actually viewing fewer properties than expected.

"Nearly three quarters of people in London agree that the current shortage of buyers gives people a better chance of securing a good deal," added Mr Shipside.

2008-09-24T10:56:00.000+02:00

As of 1st October 2008, Energy Performance Certificates (EPCs) will become compulsory for all new residential lets, 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.

Certain regulations permitted the marketing of properties without a Home Information Pack (HIP) or EPC.

This typically included homes which were marketed prior to the various applicable commencement dates and where those properties had been continuously marketed ever since.

The exemption provisions cease on 1st October 2008, which means that, for all properties for sale as of that date, where contracts have not been exchanged, the seller must provide the buyer with an EPC prior to exchange.

The Energy Performance of Buildings Directive will require that all buildings have an EPC from that date. This affects both commercial buildings (non-domestic) and homes (domestic).

This relates to all properties being sold regardless of when listed and whether or not they have been openly marketed.

The seller is responsible for procuring the EPC, having a copy available for prospective purchasers to view and providing a hard copy to the purchaser prior to exchange.

EPCs tell you how energy efficient a home is on a scale of A-G. The most efficient homes - which should have the lowest fuel bills - are in band A.

The Certificate also tells you, on a scale of A-G, about the impact the home has on the environment. Better-rated homes should have less impact through carbon dioxide (CO2) emissions.

The average property in the UK is in bands D-E for both ratings. The Certificate includes recommendations on ways to improve the home's energy efficiency to save you money and help the environment.

According to London estate agent Kinleigh Folkard & Hayward, the new rules will have an impact on approximately 10 per cent of the properties they currently have for sale.

Carl Brignell, HIPs Expert at Kinleigh Folkard & Hayward, says, "In just a week every property on the sales market will need an EPC.

"Unlike the HIPs 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," added Mr Brignell.

2007-11-08T19:08:00.000+01:00

Almost a quarter (23.4%) of landlords plan to expand their property portfolios over the next five years, according to research carried out by the National Landlords Association...

Nearly 60% of landlords believe the size of their property portfolios will remain unchanged over the same period. Fewer than 18% of landlords suggested the size of their portfolios would reduce over the same timeframe, and a tiny 2.4% said they planned to exit the private rented sector completely.

Currently, NLA members have an average of 9.4 properties in the lettings market, a number that has remained steady over the past year. But according to the latest survey results this number is set to go up in the future.

Chairman of the NLA, David Salusbury said, “The fall-out from the so-called credit crunch has dominated public attention in recent weeks, but in times of financial uncertainty people continue to need a roof over their heads. That landlords are committed to invest further in the private rented sector over the next five years demonstrates that they remain confident about their businesses over the medium term.”

Private sector will play a ‘key role’

Landlords fulfil the valuable social function of providing affordable housing for a wide cross-section of people in society. With the latest statistics from the ONS estimating the UK population will reach 70m by 2028 and an extra 5 million households set to be created over the next quarter of a century, continued investment by landlords will be essential if the UK is to meet the demand for rented homes.

David Salusbury continues: “As the population grows and the number of households in this country continues to expand, the private rented sector will play a key role in providing homes to a larger number of people who need either a temporary or a longer term housing solution. That includes people who move jobs, those who have arrived in this country from abroad, families who are on benefit and some of the most vulnerable sections of the community.”

Renting is not the housing choice of last resort, however. Many people regard renting as a lifestyle choice that gives them greater flexibility and can be more cost effective than buying. The quality of rented properties has risen steadily, according to the English Housing Survey.”

Caution is appropriate for newcomers to buy-to-let, however, and people purchasing investment properties must do their homework, check the sums add up and ensure they understand their rights and responsibilities.

Long term perspective needed
Mr Salusbury continued: “Residential property investment is not a means of getting rich quick. t is unclear as to whether house prices will rise or fall over the next 12 months, and those who are buying a property to let as someone’s home need to have a medium or long-term perspective.

“Demand for the right property in the right location remains sound, but there is an over supply of new build flats in some areas, which may make them difficult to let or sell.”

“Landlords must be familiar with their legal obligations, in terms of health and safety requirements, houses in multiple occupation, tenancy deposit protection and tax. The NLA is committed to supporting the independent landlord by offering extensive information and support in return for a modest annual subscription.”

2007-11-05T11:33:00.000+01:00

The number of new mortgage approvals fell by 20% in September from a year earlier, reports the BBC…

According to Bank of England figures, 102,000 new mortgages were approved for house buyers in September 2007 - 25,000 fewer than in September 2006, and 6,000 fewer than in August, the Bank said. The figures add to the growing body of evidence that the property market is now cooling off rapidly. Recent surveys have shown that price growth is slowing down in many areas.

Last week the Land Registry for England and Wales reported that annual property price inflation had dropped in September to 8.7% from 9.4% in August, describing this as a "noticeable dip". Other recent surveys, from big mortgage lenders, surveyors and the Department of Communities and Local Government, have all been pointing in the same direction.

Continuing downturn

The number of new mortgages approved by UK lenders in September was the smallest monthly amount since July 2005. The downturn has been going on since the summer of 2006, when the Bank of England imposed the first of five increases in interest rates.

But the squeeze on the market now seems to be gathering pace as higher borrowing costs and prices that have still risen briskly in the past year have finally taken their toll.

This slowdown will manifest itself most obviously in 2008, according to the Council of Mortgage Lenders (CML). Publishing its annual housing market forecasts, the CML said that house price growth would slow down to just 1% from an eventual 7% this year.

Slow but not stagnant

And it predicted that there would be a 15% decline in property sales during 2008, down to 1.01 million from an expected 1.17 million this year. "We now expect a slower mortgage market next year, although by no means a stagnant one," said Michael Coogan of the CML.

"Most borrowers will cope, but not everyone will escape unharmed from the effects of a slower market," he said. The CML also forecast a 50% rise in the number of home repossessions in 2008. And this would be made worse by wider credit problems globally, with lenders setting increasingly strict criteria for borrowers, so that remortgaging would be harder.

Commenting on the CML's figures, Adam Sampson, head of housing charity Shelter, said: "These figures will no doubt set alarm bells ringing for hundreds of thousands of homeowners across the country".

2007-11-02T11:30:00.000+01:00

New buy-to-let investors may need more patience to realise good returns…

Lower house price inflation may have especially strong implications for aspiring buy-to-let investors. Landlords who entered the buy-to-let sector near the start of the decade have made enormous returns, but strong house price growth relative to rents has pushed net rental yields well below the current cost of a mortgage.

This implies that without very strong capital gains, a new entrant into the market would make negative total returns in the short term until rents caught up sufficiently to cover operating and mortgage expenses.

Private sector rents ‘robust’

There is now evidence that after several years of weakness, private sector rents are growing more robustly. Even so, rents would have to rise very strongly relative to house prices to make short-term buy-to-let investments profitable at current interest rates.

Nationwide’s Fionnula Earley commented “Investors with long horizons can still make satisfactory returns if long-term historical trends for house prices and rents hold up.

“The government’s latest projections show that the 15-34 year old population will be increasing until the middle of the next decade, and this should be supportive of both tenant demand and rents.

“Even with only modest house price inflation, these conditions would produce relatively healthy returns over a 10-15 year horizon

2007-11-01T11:25:00.000+01:00

Despite speculation of a housing and buy-to let decline, Assetz, the property investment specialist is urging the medium term investor to capitalise on the current climate and invest in buy-to-let, with current market conditions giving excellent opportunities for investors.

With rents predicted to reach record growth rates*1, bank base rates on the way down, a number of forced sellers discounting their property to hagglers and developers launching enticing incentives, now is proving an excellent time for careful investors to get into the market, with the most profitable rental income situation seen for years.

Great opportunities available

A growing number of potential first time buyers are reported to be staying in rented accommodation*2, awaiting greater market certainty. As a result, demand for rental property is strong and rental incomes are expected to grow over the coming months, as the balance between supply and demand is altered and demand for rental property outstrips supply*3. RICS has recently commented that apartments will see the strongest rental growth, clearly discrediting rumours of a UK wide oversupply.

Stuart Law, Chief Executive, Assetz comments: “While the market has been subject to much speculation and turmoil over the last few months, there is significant evidence to suggest that for those taking a medium to long term perspective, now is an excellent time to invest in buy-to-let property.

“As the number of sales slow, UK developers are offering some great opportunities. Developers need early sales on a scheme in order to achieve bank funding, with typical high-density apartments proving ideal for renting. However, my advice to investors would be to ignore simple price drop incentives and to look for what impact the discounts will have on yields and on overall return on investment. Don’t just buy flats but diversify into houses, both new and old and possibly include some high-yield student accommodation.

“With interest rates predicted to fall imminently, and rents rising, both new and established investors will soon reap the rewards of higher rental yields with positive cash-flow. Any lower prices offered by the few sellers in the market will be taken advantage of by aggressive buy-to-let investors and combined with rising rents they will see high yields, not experienced for a few years.”

Zero chance of price crash

Assetz predicts that rents will have risen by 10% over the last year, with a further 10% rise predicted for 2008, making almost all current property investments cash positive, even if an investor is having to subsidise their mortgages at present.

Law concludes: “If you read up on the facts and bear in mind market dynamics, there are great foundations in place for UK residential property to prove a rock solid investment over the next 10 years. My advice would be to target smaller households in the right areas and to keep cash in reserve for short-term risks but don’t miss this ‘perfect storm’ of a buying opportunity.

There is a zero chance of a house price crash at present and high certainty that a 4.4m, Government predicted increase in our population by 2016 will give plenty of capital growth, on top of the rental profits now beginning to flow through.”

2007-10-26T11:52:00.000+02:00

More than a quarter of a million Brits currently own a foreign property, meaning the trauma and cost of holiday arrangements could become a thing of the past.

Indeed, a third of current and potential overseas homeowners believe that owning a holiday home will make family breaks more affordable and a quarter feel it would reduce the sheer stress of arranging holidays.

Millions of Brits currently jetting away on the half term holiday will be returning home stressed out from the organisation and cost of the holiday. Three in ten (31%) are considering buying a property abroad, and a quarter (25%)* of them are doing so just to avoid the stresses and strains of the annual family holiday.

Mike Freer, Head of Business Development at NatWest International Personal Banking comments: “Holidays should be fun and relaxing but sadly this isn’t always the case. The hassle and expense of arranging holidays can be hugely traumatic - from deciding where to go and remembering to pack everything but the kitchen sink, yet keeping under the new airline luggage weight restrictions. And the holiday itself can be spoiled by dreadful food, poor accommodation, meaning that Brits end up needing another holiday when they return!

”Holiday homes ‘make sense’

However, as three in ten (29%)* of people do, or plan to return to the same destination each year, it makes sense to consider buying a property there. Over half (52%)* of those who are considering buying a property abroad will look to a place they have already been to on holiday.

Over six in ten (64%)* of those that are considering buying abroad are planning not just to use their new property as a holiday home, but to live abroad there permanently. A fifth (18%)* plan to move when they retire, however 17% want to leave within the next five years.

Mike Freer concluded: “Buying a holiday home abroad is increasingly becoming the norm for British families. Spain continues to top the tables as the most popular overseas hotspot. While the upfront purchase cost is a huge financial commitment, the long term benefits of holiday homes can be fantastic as they provide great investment potential, a wonderful lifestyle and a permanent escape from the hassle and expense of holiday arrangements. A holiday home can literally pay for itself.”

2007-10-24T13:17:00.000+02:00

The credit crunch 'waiting game'

New home prices have continued to fall over the last three months...

The squeeze on credit has also had a dampening effect on the home buying public. Four interest rate rises in the last twelve months have also dented consumer confidence, with potential homebuyers pursuing a ‘wait and see’ approach.

Apartments still make up the majority of the housing mix at just over 57%. The demand for family homes is still not being met resulting in an increase in incentives and discounts for apartments.

While the average price of a new home (stock price) continued to fall last month, the price buyers are willing to pay (demand price) has increased, showing that buyers have confidence in the new homes market.

FTBs ‘rapidly vanishing’

Over the summer, prices have continued to fall. However, prices for new build prices are still up on this time last year. The incentives that developers continue to offer on apartments appeal to rapidly vanishing first time buyers, who are typically looking for a smaller dwelling as a first step.

With these borrowers having to rely on large loans to get them onto the ladder and house price growth rapidly exceeding the average wage rise, incentives are a welcome help.

All areas of the country have seen a decrease in prices apart from Wales and the South West which have seen a monthly price increase of 3% and 4% respectively.

The second homes market is proving popular in the South West and wealthy buyers and buy-to-let investors are investing in second homes following the summer season and a return from holidays.

Outward migration continues

The ability to work from afar is also increasing, allowing people to spend more time out of London, in their second homes, therefore pushing prices up in these areas.

Outward migration continues for both London and the South East this month, -7.8% and -4.4% respectively. Commuter hotspots still remain popular, with inward migration strong in East Anglia.

The Northern hotspots are still proving the most popular with new home buyers, consequently driving up prices. Strong inward migration continues to be recorded with 4.2% in the North, up from last months 3.8%.

2007-10-19T11:56:00.000+02:00

British homebuyers fall into one of five personalities when buying a home; the aspirant fledgling, those that have been around the block, the savvy long-haulers, the bandwagoneers and the wallflowers...

This is according to the “House Price Expectations” report by the Building Societies Association (BSA), the trade association for the UK’s building societies. based on research conducted by Ipsos MORI.

However people react to the UK housing market, there is a personality to describe each one.

Aspirant fledglings

These homebuyers possess a strong desire to have a home they can call their own, and put an end to “wasting” money on rent. They are generally optimistic about the market and house prices but, because of their inexperience they are more likely to seek out advice from friends and family, not to mention estate agents, the media and television. Many are concerned that they might be left behind if they do not buy, and that their dream home might escape their reach.

Been around the block

Experience counts for these homebuyers. They are more likely to rely on their own analysis of the market than media reports, drawing on the know-how they have accumulated in previous house moves. Most accept that house prices could fall. The value they derive from owning their home is more important to them than the prospect of a financial return. However, already having a foot on the ladder reduces the fear of being left behind by rising house prices.

Savvy long-haulers

This group of buyers makes up the majority of investors. They are investing for the long-term, having considered other investment options available to them. Often, their investment is to provide for them in retirement. They tend to give greater consideration to the timing of their purchase than homebuyers do. Media and television reports are pretty unpersuasive to them, as are the proclamations from property investment companies. Long-term trends are more important to their price predictions than is the case for many homebuyers.

Bandwagoneers

These investors have entered the property market because they had seen other investors doing so. They are much more likely than other investors to be influenced by television programmes and media reports about how lucrative buy-to-let can be and the future of house prices. Property investment companies are also relatively more persuasive to them. They make up the minority of investors, however.

Wallflowers

These participants may well fall into one of the above groups. Currently standing on the sidelines, they carefully consider the timing of their purchase and are ready to enter the market if they see prices fall. Falls in price represent a buying opportunity, possibly because they consider that property is currently over-priced. Although they still expect prices to rise, a greater proportion than other participants expect, or perhaps hope, that prices will fall in the next year.

Adrian Coles, Director General of the BSA comments on the report’s findings: “This report looked to examine how people think about residential property purchase and how they form their expectations of future movement in house prices. People are motivated by a variety of reasons to enter the property market; a diversity that is likely to add to the resilience of the market should house price growth decrease or even fall.”

“In addition, different groups rely on different sources of information to construct their expectations of future price movements and the general state of the housing market. The report suggests that those buying property generally do give great consideration to a wide number of factors and enter the market with their eyes open.”

2007-03-29T15:55:00.000+02:00

Are self-service mortgages the way forward?

Term reduction has become a key aspiration for mortgage holders, with almost three quarters wanting to reduce their mortgage term or increase their payments to reduce the balance over time, according to research featured in Intelligent Finance’s ‘End of Term’ report.

Its publication coincides with the launch of a new self-service offset proposition which could save mortgage holders tens of thousands of pounds in interest. When questioned, more than half of mortgage holders expressed an interest in a self-service mortgage facility.

Flexibility is key to mortgage freedom

Unsurprisingly, nearly a third of people say paying off their mortgage or monthly mortgage repayment is their biggest financial concern. The appetite for more flexibility is clearly strong, with almost half of all borrowers believing their current mortgage arrangements are restrictive.
If given the choice, nearly three quarters of people would reduce their mortgage term or increase their mortgage payments to reduce the balance over time. One in five would welcome the ability to lower the amount on their regular mortgage payment.

Holistic approach

At last, people seem to be looking at their mortgages holistically rather than being seduced by headline rates. Six in ten mortgage holders are fully aware of the total cost of their mortgage over its full term, almost double the amount from just 18 months ago.
Mark Parker, managing director at Intelligent Finance said: “We now have a new generation of mortgage holders who view their finances holistically and want more flexibility and the option to pay off their mortgage as soon as possible, rather than go on borrowing into old age.”
“Offsetting delivers exactly this. We’re putting mortgage holders firmly in the driving seat, right where they belong.”

Self-services mortgages: how it works

With an offset mortgage you could reduce the amount of interest you pay on your mortgage. Instead of receiving interest on your savings, ISA and current account, you pay none on the equivalent amount on your mortgage.

Intelligent Finance has enhanced its award winning offset mortgage with a self-selecting offering. Customers can now select their preference of shorter term, lower payments or reduced debt and Intelligent Finance will then ensure it happens automatically.

Look what you could save

A mortgage customer with a 25 year old 90% LTV offset tracker mortgage, borrowing £250,000 on a repayment basis against a property worth £290,000, with £10,000 in savings, £3,000 monthly salary paid into a current account and £50 a month additional savings would have the following choices:

Shorter Term: reduce the balance on your mortgage balance faster, and possibly repay your mortgage earlier - save £44,737.19 in interest and shave 2 years and 4 months off the term
Lower Payments: make your monthly payments as low as possible - save £25,615.80 in interest.

Reduced Debt: reduce the amount you owe without affecting the term of your mortgage - save £34,828.70 in interest.

2007-03-28T15:53:00.000+02:00

Landlords set store by mortgage advisers

Booming buy-to-let market sees strong reliance by landlords on mortgage advisers…
Mortgage advisers are providing a much needed lifeline to nearly three-quarters of landlords (74%) who seek advice, according to research undertaken by BDRC for Alliance & Leicester Mortgages.

Almost a third of landlords said they relied on brokers for advice a ‘great deal’ when it comes to letting properties and a further 46% relied on them a ‘fair amount’.

Overall, over half of landlords (55%) are relying on advisers for making them aware of new buy-to-let deals, giving advice on the deals and arranging the actual mortgage with the buy-to-let lender.

The findings identified three key roles that advisers play. Landlords saw the new product information they receive from advisers as the most important factor as it is harder to obtain anywhere else. Joint second was an adviser’s ability to source new deals and arrange the buy-to-let mortgage for them.

Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester, said: “From our research, it is clear that advice plays an important part for buy-to-let investors.”
“Landlords need their advisers to obtain information that they can’t easily get hold of themselves as well as helping them get the best mortgage product for their needs.”

“Advisers provide a sounding board which, for many, is crucial in the decision making process and could impact hugely on the landlord’s finances. The fact that half of landlords taking advice remain loyal to one adviser shows just how much they really do value this relationship.”

Landlords arrange to see their mortgage broker on a regular basis – with one in ten seeing their adviser weekly and over a third (40%) seeing their adviser at least once a month, Only a very small number (2%) wait for the adviser to contact them.

Buy-to-let has been one of the success stories of the mortgage market in recent years. Whilst it has traditionally been favoured by professional landlords, good returns and a flourishing housing market has attracted a wider range of investor. However, it is evident that landlords value the sound advice and support that advisers can offer.

Mehrdad Yousefi added: “It is evident that mortgage brokers have an important role to play in the buy-to-let market, now and in the future. As landlords gain more experience, they may develop confidence and feel better equipped to make their own decisions and then may choose to go direct to a lender.”

“However, advisers can sometimes provide better, more competitive deals which may not be accessible if they go direct to lenders.”

2007-03-26T15:38:00.000+02:00

£9,500 ‘cost of moving’ tab

The overall cost of moving house has more than tripled over the last ten years. It now stands at £9,486, up from £2,925 in 1996.

The most recent research by propertyfinder.com showed that on average, people looking to move home in the UK can currently expect to pay £450 in removal costs, £1,000 in lawyer fees, £3,027 in estate agent’s fees, and a massive £5,009 in stamp duty. Ten years ago, these figures stood at £376, £857, £1,257 and £543 respectively.

Warren Bright of Propertyfinder said: “On top of rapid house price inflation, home sellers have to contend with the soaring costs of moving home. The largest factor is stamp duty, which now accounts for over half of moving costs on the average home and has risen almost tenfold in ten years!”

“Without doubt, the Chancellor has been the largest beneficiary of the booming housing market.”

While the costs of moving home have risen by an annual average of 12.5%, inflation has averaged 1.5% per annum over the same period.

These higher costs effectively have to be borne by a homebuyer’s mortgage, adding just under £60 to the monthly cost of a borrower’s repayments, around £700 every year!

The extra costs are discouraging people from moving up the property ladder, said the report, and there is a resulting shortage of properties on the market, particularly at the bottom end. The website’s monthly confidence index suggests people currently expect house prices to rise by 6.4% over the next twelve months - and 31% of home seekers would account a rise primarily to the fact that there are too few properties coming up for sale.

2007-03-26T15:20:00.000+02:00

Soaring prices ripple out from London

House price inflation in England and Wales has grown to its highest level for almost four years, figures out today show.

Average house prices grew by 0.8% in March - up from 0.7% the previous month, according to Hometrack's latest survey, pushing the annual rate of inflation up to 6.7% - the highest year-on-year growth since June 2003.

The report also suggests London prices are increasingly "disconnected" from the rest of the country and causing a ripple effect by driving up prices in the commuter belt.

Richard Donnell, Hometrack's director of research, said, "The headline figures continue to be distorted by a robust London housing market that appears largely disconnected from the rest of the country where the impetus for price growth is far more subdued."

The firm’s monthly survey shows that average house prices in London grew by 1.8% over March, the largest monthly increase in the capital for over four years. A lack of housing for sale combined with strong competition from buyers resulted in average prices rising across more than 80% of postcodes during March.

Over March the highest increases in average values were seen in Sutton (3.5%), Merton (3%) and Brent (2.4%) compared to 1.6% in Westminster.

The strength of house price growth in London is also having a clear knock on effect on the suburbs around the capital. Average house price growth was 0.8% in both East Anglia and the South East over March. The strongest growth was seen in Berkshire, Kent, Suffolk, Buckinghamshire, Hertfordshire and Surrey which all saw above average growth.

Away from the markets influenced by the London economy, house prices remain largely subdued. House price growth across the remaining seven regions of the country ranged from between 0% in Wales to 0.3% in the South West.

2007-03-22T18:43:00.000+01:00

Missed opportunity’ to help first time buyers

As yesterday’s budget dust settles, industry specialists are left frustrated and annoyed that the Chancellor managed to touch on the importance of first-time buyers but still left them out in the cold.

The Budget failed to reform stamp duty levels, with the current exemption remaining on properties up to a value of £125,000, despite the average house price in the UK now running at over £200,000.

“As national house prices continue to rise and the cost of living increases it is first time buyers who are really suffering,” said Peter Bolton King, chief executive at the National Association of Estate Agents. “Once again the Chancellor has refused to address some of the most important issues head on."

“It’s about time the government took real steps to ease their plight,” he added.

Easing his tone a little, Peter Bolton King said he was pleased to see the stamp duty incentive being applied to zero-emission homes in the new build sector, but wanted the measures to go further, covering DIY installed green home improvements.

The budget was a lost opportunity to redress the burden of stamp duty, according to the Alliance & Leicester. “Our research reveals that the majority of [first-time buyers] are caught in this tax trap, preventing them from getting a foot on the property ladder,” said director of mortgages, Stephen Leonard. “Two-thirds of first-time buyers are looking for homes over the current £125,000 stamp duty threshold.”

“House prices have risen over 11% in the past year, and as the current average house price for a first time buyer stands at £151,030, the limit needs to be at least this amount to have any effect,” Leonard added.

Paul Smith, chief executive of haart estate agents, is another frustrated by the Chancellor’s line on stamp duty. "Stamp duty is an all-encompassing tax for everyone and it particularly deters first-time buyers, who are already struggling to raise the capital for a deposit, from entering the market - the very people the government says they want to get back into the market. It is crucial for the survival of the housing market that first-time buyers are encouraged to enter," he said.

Green effort
In line with the increasing zeal of many to over-embrace the green objective, the Chancellor did make stamp duty concessions for zero-carbon homes

Taking effect from October, stamp duty will be waived on new homes costing up to £500,000 that meet the zero-carbon criteria. In addition, those eco-homes built to the same standard but costing in excess of £500,000 will have £15,000 knocked off their stamp duty bill.

But Helen Adams, managing director of first-time buyers' advice site, FirstRungNow.com said: "Removing stamp duty from the purchase of zero-carbon homes is worthy and welcome but at the moment the number of these homes is very low – something for house-builders and sellers to work on.”

2007-03-21T16:34:00.000+01:00

Wrinklies driving home ownership growth

New government statistics reveal a rise in the number of single households as the single biggest factor accounting for around 70% of household growth until 2026.

The figures also show higher levels of household growth in the North and the Midlands and a levelling-out of growth in the wider south east compared to previous projections - providing more evidence that economic growth is spreading throughout the country.

Communities and Local Government’s New Projections of Households for England and the regions to 2029 shows the number of households is projected to rise by 223,000 new households each year.

The new figures show an annual rate of growth from 2004 to 2026 of 223,000, compared with 209,000 in the last estimate in 2003.

The number of households in England is projected to increase from 21.1 million in 2004 to 26.0 million in 2026 and to reach 26.5 million in 2029.

The key reason for the growth is the continued rise in the number of single households, amounting to 155,000 of the 223,000 of projected growth (70%). More than one third of these one person households are over 65 years reflecting an ageing population and an increasing average life expectancy, now projected at record highs of 81.6 years and 85.2 years for men and women respectively. These figures reflect a significant increase in male life expectancy in the last few years.

Net international migration continues to account for a third of household growth.
Housing minister Yvette Cooper said: "These figures show why it's right to build more homes to meet the needs of the next generation. We have a growing population with people living longer and more of us are living alone.”

"These figures show the need for more homes is not restricted to London or the South East. Increases in jobs and economic prosperity across the Midlands and the North are increasing demand for housing nationwide.”

"If we don't build more homes we will see house prices rising even higher, with young people struggling to afford a home of their own."

2007-03-19T14:53:00.000+01:00

Property shortage to ease soon – temporarily

Rightmove said a shortage of supply was driving prices higher in spite of higher borrowing costs and the prospect of a further rate rise.

The property website said average asking prices rose by 1.5% (£3,381) last month as the spring market strengthened and shrugged off fears of another interest rate rise.

According to the report the continued shortage of supply has more than compensated for the impact of the January rate rise. Compared to a year ago, buyers face prices that are £24,784 higher, an annual increase of 12.2%, up from 11.5% in February.

But the shortage may be temporarily eased as the Budget details will be out of the way this week and the spring surge will soon be on us, boosted by people deciding to sell before the June 1st deadline when compulsory home information packs begin.

This weeks Budget news may or may not hold something for first-time buyers but commercial director, Miles Shipside said: “Any tinkering with demand by raising stamp duty thresholds with one hand or raising interest rates with the other is likely to be insignificant compared to the potential impact of several hundred thousand extra sellers trying to avoid the extra obligations and costs of the biggest ever legislative change to the housing market in England and Wales.”

“Ironically, the extra supply and choice this will create will give hard pressed buyers some relief from the unhealthy price spiral. It is also a factor that must not be ignored when decisions affecting the housing market are being considered by policymakers at what could be a sensitive time.”

Only a respite

“As we have seen recently,” said Miles Shipside, “raising interest rates can be used to influence the direction of prices in the short term but do very little to address the underlying cause of house price inflation. Crucially they cannot address the increasing demand for housing driven by the needs of a growing population.”

2007-03-16T16:53:00.000+01:00

Separate bedroom trend explained

New scientifically-driven research has put a question mark over claims, in recently-published research, that snoring and busy lifestyles are forcing couples to seek separate bedrooms.

One in five Britons say that, given the option, they would choose to have a separate bedroom from their partner, according to data collected by PARSHIP’s scientific assessment of more than 600,000 Europeans. But this growing trend isn’t being driven by sleepless nights; it’s more a matter of psychology.

Millions of single people across Europe have completed the dating firm’s propriety psychometric test to assess compatibility in relationships. 22% of Britons and 21% of their European counterparts said that, if they shared a two-bedroom apartment with their partner, they would prefer to have their own room – although they would want at least one of the bedrooms to offer the option of spending the night together. The vast majority, 78%, claimed a shared bedroom would be a must in their relationship

Dr Victoria Lukats, psychiatrist and the firm’s relationship expert says it's a person’s need for their own personal space that's driving this trend.

“Although a snoring partner, hectic lifestyle and children will certainly cause sleeplessness for many couples,” she said, “the truth is that none of these appear to be the main issue in couple’s decision to opt for separate rooms. In actual fact, one fifth of people have such a marked need for their own personal space that sharing a bedroom could be a real turn-off.”

“In contrast, other people have a high need for personal intimacy and want to share everything with their partner.”

“What we do know, is when two people differ widely in their need for intimacy, then there is likely to be conflict at some point in the relationship. That’s why a high degree of compatibility between two people is so important if the relationship is to last.”

Faye Rowe, editor of insidedivorce.com, a site for people going through a divorce or separation, believes that these statistics are worrying.

She said: “Our own research shows that one in five British marriages is currently on the rocks and 22% of people say that a lack of sex and intimacy are the main reason for their relationship breakdown.”

“If you still have a healthy sex life, even though you sleep apart, then that’s all well and good but, for many people, sharing a bed is an important part of being a couple – and potentially it could even save your relationship.”

2007-03-15T16:59:00.000+01:00

Young look abroad to get on property ladder

New figures reveal the emergence of BARBies (Buying Abroad, Renting in Britain)...

High property prices in the UK, a fear of rising interest rates and stamp duty are driving young people to look at buying property abroad, according to a new survey by Hiscox, the specialist insurer. Almost 40% of young people would consider buying abroad as a first step to getting on the property ladder.

Overall, 88% of people say excessive house prices are the main barrier to buying in the UK with this figure rising to 97% among 18-24 year olds. Two thirds (65%) of respondents quoted rising interest rates as a barrier; 58% stamp duty; and 36% felt the whole process is too long and complicated in the UK. Almost a third (29%) had real concerns the housing market would crash in the next couple of years.

Indicating the emergence of a new social group for the Noughties - the BARBies (Buying Abroad, Renting in Britain) – the survey found that over a third of people (35%) fear they will never be able to afford a house in the UK, and more than a quarter (27%) of these would consider buying abroad just to get themselves on the first rung of the property ladder.

Worried BARBies
Young people under 35 are the most anxious about their failure to get on the housing ladder, with 37% worried that they will never become a UK home owner. People living in London and the East Midlands are the most worried of any region (21% and 24% respectively).

BARBies are primarily seeking good investment potential. Three quarters (74%) now see buying abroad as a more affordable option and among 18-24 year olds this percentage increases to 84%. Other perceived advantages of buying abroad include a better rental income than the UK (48%) and a simpler purchasing process (27%), not to mention the fact that they might be able to combine renting with using the property as a holiday home (70%).

Perhaps unsurprisingly, given the relative cost of living, non home owners currently living in the South East are most likely to be thinking of buying overseas property as an investment (38%). In the battle of the sexes, men are much more likely than women to consider this option (33% compared with 22%).

Steve Langan, UK Managing Director at Hiscox, commented: “More young people than ever before are finding their route into the UK property market blocked and are turning to overseas property investment as a more affordable and potentially lucrative investment option. In the 1980s, Yuppies started to push UK property prices up and the signs are that twenty years later the BARBies could do the same for property prices abroad. We’re already insuring thousands of homes abroad and we are seeing a strong rise in the number of foreign properties being bought: our client base more than doubled in the past year alone.”

2007-03-14T14:44:00.000+01:00

Asking prices point to ongoing ‘second wave’

Asking prices for homes in England and Wales have reached their highest level since February 2005 with a monthly rise of 0.7%, according to the latest asking price index report from Home.co.uk.

This increase is part of an upward trend spanning the last ten months. These indications suggest the UK is experiencing a second wave of house price inflation and renewed confidence in the housing market.

The Home.co.uk asking price index uses current price data, which incorporates the usual discounting activity that takes place as sellers try to attract enquiries. The Bank of England estimates that asking price data is around six months ahead of HM Land Registry data and three to four months ahead of mortgage approval data (Halifax and Nationwide).

Despite three interest rate hikes, asking prices are rising once again in England and Wales, albeit at a more sustainable rate than observed in the run up to 2004. Market house prices rose 3.5% overall, in the last year, which is broadly in line with wage rises and the Retail Price Index.

“The greatest contribution to this month’s rise came from Greater London where market sentiment is very positive,” stated business development director Doug Shephard. “Asking prices in London increased by 2.5% in the first quarter of 2007, although in most other English and Welsh regions house price rises are more subdued, being at or below the overall Q1 figure of 1.1%.”

The recent drop in the consumer price index, Gordon Brown’s favourite measure of inflation, has taken the pressure off Monetary Policy Committee members to vote for another rise in interest rates. Whether or not inflation is truly under control remains to be seen, yet so far so good, as the MPC seems to have pulled off a fine balancing act between curbing inflation and stopping the housing market in its tracks.

The Home.co.uk asking price index currently stands at 101.7 [100 = May04], its highest level since February 2005. Following steady growth since the soft landing in May 2006, the index has yet to return to the record level of 103.8 registered in September 2004. If the current rate of growth continues, asking prices will surpass this previous record in Q4 this year.

2007-02-23T14:35:00.000+01:00

House subsidence threat from concrete drives

Over 100,000 London homeowners - and many more in the South East of England - could face an increased risk of subsidence because they, or their neighbours, have succumbed to the urban trend for turning front gardens into off-road parking spaces, according to new research by esure home insurance.

The research includes a report commissioned by esure from the British Geological Survey which describes how new driveways - and other impermeable surfaces such as patios - can cause rainfall to 'run off' into drains rather than penetrating lawns or flowerbeds where it will seep down to reach thirsty tree roots.

This can then create the conditions for subsidence as roots searching for water upset the moisture balance in the soil that underpins nearby foundations.

The number of properties in Greater London at risk from this phenomenon is estimated by esure home insurance to top 100,000. This is equivalent to the 7% of homeowners in the South East who have already converted their front gardens into parking spaces (source ICM) - plus their direct neighbours - as a percentage of the estimated half million homes in the Greater London area built on London Clay with a large tree nearby (source: Addressology 2006).

Nikki Sellers, head of home insurance at esure, said: "It is very appealing for homeowners in busy streets to create a bespoke parking space for their property.”

“Unfortunately, for houses with a street tree or large front garden tree nearby this can significantly increase the risk of subsidence. A dedicated space may increase the value of your home but subsidence damage will do quite the reverse."

Nikki added, "It is essential that driveway or patio conversions are sympathetic to the fact that nearby trees will always need moisture."

Lee Jones of the British Geological Survey said, "It is a simple fact that trees need moisture, so anything that deprives them of moisture over time in clay soil areas can create the conditions for subsidence. The dramatic rainfall we have seen recently will only reach trees if the ground above allows the water to penetrate the soil and reach their roots."

The risk of subsidence is further compounded if homeowners have laid impermeable surfaces such as concrete driveways or patios rather than gravel or brick paving which still allow some water to filter through.

Without adequate moisture entering the soil, esure's research concludes that tree roots may extend under properties in search of moisture. In clay soil areas - particularly during dry periods - this can contribute to soil 'desiccating' under properties. This can significantly increase the chances of subsidence, particularly if a number of adjacent neighbours all do the same thing, effectively cutting off one of the main water sources for a tree.

Tips for converting a driveway or adding a patio safely:

Be very conscious of nearby trees when making any change to lawns or front gardens that will reduce or increase the amount of water entering the ground. Tree roots can extend up to 30m for some trees and much of the moisture absorption comes from the last few metres.

Avoid laying concrete in a place where soil or lawn was previously close to a large tree (ie one with a potential full grown height of over 15ft). This can make an area of ground practically impermeable to moisture. Instead consider block or brick paving with permeable gaps.

Consider leaving areas of open soil or flower beds adjacent to newly paved areas and to ensure the paving 'cambers' to allow moisture to run off into them - particularly if it slopes right down to meet pavement.

Watch out for new cracks - particularly diagonal cracks bigger than a 10p piece - in the front bay, porch way or brickwork of your home. These can be the first signs of subsidence. Notify your insurer early if concerned.

2007-02-21T17:32:00.000+01:00

1 in 5 home buyers to invest in buy-to-let

A fifth of those planning to buy a home in 2007 will purchase their property as an investment, according to research by buy-to-let mortgage lender, Birmingham Midshires.

The findings also reveal that in 2006 Northern Ireland provided the largest return on investment properties.

As part of an ongoing study of the specialist mortgage market, Birmingham Midshires asked a GB representative sample of 2,000 people whether they plan to invest in property during the next 12 months.

At a time when the value of the UK's buy-to-let property markets stands at over £94.8 billion , the latest findings from the lender reveal that as many as 40% of twenty-something's planning to buy a property in 2007 will do so as an investment, as will one in four single parents.

Examining the market in 2006, the top five property hotspots are identified below. The dynamic nature of the property market means these hotspots are always changing with regional movements.

Tim Hague, director of mortgages at Birmingham Midshires commented: "The buy-to-let market has grown consistently over the past decade. When you consider the returns available, in terms of both capital appreciation and rental yield, it's easy to understand why property investment continues to grow in popularity. A growing number of people see property as an important part of a balanced investment portfolio."

Key facts on the buy-to-let market:

The buy-to-let market is currently worth £94.8 billion, and as many as 330,000 buy-to-let mortgages were taken out during 2006 - representing as much as 11% of all new lending.

Over the last 10 years, average weekly rents have increased by 37% - 1.3 times the rate of inflation. Average weekly rents have increased from £75 to £118.
Birmingham Midshires was 2006's biggest buy-to-let mortgage provider.

On average, buy-to-let has consistently outperformed other investment opportunities. Since 2002 the average return to a FTSE100 shareholder stands at 6.9%, compared with the average interest rate for savers of 3.9%. In contrast, buy-to-let investments make an average return of 11.25% for investors (Rent & Capital Appreciation against initial costs).

High house prices in Central London have resulted in good capital appreciation for investors (217% over 10 years). Buy-to-let investment in Central London returns an average annual rental yield of 4.7% compared with 5.9% in Manchester and the North West.

2007-02-20T15:43:00.000+01:00

Mortgage lending cools – but tops last January

Gross lending hit an all-time January high of £26.8 billion according to the latest data from the Council of Mortgage Lenders. Although this was down by 6% on the £28.5 billion lent in December, it is up by 16% on January 2006 (£23 billion).

Commenting on today's data, CML director general Michael Coogan said: "Mortgage lending kicked-off 2007 in robust shape, and we expect this strength to continue over the next few months.”

“Quite how strong it will be later in the year depends on what happens to interest rates. While we avoided a rate rise earlier this month, the markets are still expecting at least one more quarter point rise by the middle of the year. And, because of this uncertainty, it would be surprising if some home buyers did not review the timing of their decision to move".

2007-02-19T15:51:00.000+01:00

Shock tactic’ halves house price growth

The shock tactic of an unexpected rate rise early in the year appears to have dramatically cut rises in house asking prices.

And the smaller than anticipated monthly rise in asking prices has resulted in a sharpest drop in the annual rate for 18 months.

The annual rate fell 2% last month, from 13.5% to 11.5%, Rightmove said today.

Analysts are forecasting a slowdown in the annual rate to around half the current level of 11.5% by the end of 2007. However, it is highly unusual for sellers to constrain their price aspirations so early in the year.

This month’s report shows that 143,000 newly marketed properties have increased in price by just 0.9%, by far the lowest February figure for the last 5 years. Since Rightmove started its house price index five years ago average asking prices have always increased by over 2% in February.

This is all the more surprising given wider analysis of our data. Estate agents continue to report good levels of sales activity, and our data shows average property for sale per estate agency branch at a 3 year low for this time of year. This, in conjunction with a speeding up of stock turnover since the New Year, has led to a fall in time on the market, from 88 to 78 days. This combination of factors would usually generate a rise in prices similar to previous years.

The contrary statistics point to the shock January interest rate rise knocking sellers’ traditional New Year optimism.

Miles Shipside, Rightmove commercial director commented: “The shock tactic of one unexpected rate rise early in the year appears to have had the desired effect. February price rises are normally two to three times higher than we have measured this month.”

“With three interest rate rises in the last six months and the looming threat of another, it looks like we have finally reached the point where the market is highly interest rate sensitive. We are at a crossroads, and the path taken by those in charge of interest rate policy will dictate the direction of the housing market in 2007”.

Only 78pc of people now believe prices will continue to rise compared to 84pc in December. Buyer confidence was found to be far lower than that of sellers, prompting concern that the market could be set for a downward turn.

2007-02-16T17:39:00.000+01:00

Britons are tops at looking after their homes

Britons spend the most in Europe on maintaining and cleaning their homes, a new report from Datamonitor reveals.

Not only do the British pay more than most other Europeans for their homes, they also spend more on home hygiene products and are more likely to renovate their kitchens and bathroom within a five year timeframe

Home sweet home

ouse prices across the UK and much of the West have seen sustained high growth for a number of years and the UK now ranks amongst some of the highest property prices in the world.

Property has become consumers’ biggest single asset, and it means that Britons are more willing to spend money on renovating their houses.

“This rise in property prices is significant. Many consumers, when they see their major asset appreciating in value, tend to feel richer, and as a result are more likely to spend their extra cash on it,” said Nick Beevors, consumer markets analyst at Datamonitor and author of the report.

The kitchen and the bathroom are the two rooms more likely to get a facelift. British consumers renovate their kitchens and bathrooms more often than their European counterparts, according to the report.

What is more, 15% and 14% of Brits profess to renovate their kitchen and bathroom respectively every 1 to 2 years.

Beevors commented, “People enrich their self image through their homes. The social phenomenon of ‘existential consumption’ - whereby consumers build their self identities through what they consume or own - is highly relevant to how people choose and reside in their homes.”

Clean living

In 2006 British consumers shelled out £1.4bn on home hygiene products, outstripping by far France (£901m) and Germany (£862m). The average UK consumer spent £24 on cleaning their home; double that of German, Swedish and Italian consumers.

Home hygiene spend is growing as consumers seek more effective and convenient products to preserve the quality of their household living environment.

Cleaning most commonly occurs once a week. Just under 30% of UK consumers clean their house once a week, and a quarter 2-3 times a week. Still household chores are largely disliked, with a quarter of consumers finding housework boring. The least preferred household chores were ironing and oven cleaning.

Consumers increasingly see their homes as a refuge from the outside world. This phenomenon often referred as ‘cocooning’ involves shutting oneself off from the rest of the world in a comfortable and secure place to have time to think and relax.

“Consumers struggle to come to terms with growing ambiguity and change, and with the growing information and opportunities technology has brought as close as the nearest hotspot,” commented Beevors. “They are finding new ways to create and exercise their own control, and cocooning is one solution.”

“Because of their desire to shelter themselves from the ‘harsh realities’ of the modern world, consumers are investing in making their homes fun, relaxing, satisfying places to spend time,” he concludes.

2007-02-15T17:33:00.000+01:00

Interest rate to rise again warns Bank

The Bank of England has signalled that interest rates will need to rise one more time to pull inflation back in line.

In its quarterly inflation report, the Bank said that inflation was on course to decline sharply over the year, settling at around the government's 2% target by the end of 2008. However, this forecast is based on City expectations for one further quarter-point rise in interest rates to 5.5%.

Economists have pencilled in May as the most likely month for an interest rate rise but beyond then homeowners have some glimmer of consolation as the Bank hinted rates could be coming down again next spring.

The report suggested inflation would fall from its current 2.7% to about 1.8% by the end of this year thanks to tumbling energy costs and lower import prices. It is then seen picking up again to hit the 2% bull's-eye at the two-year horizon - the point at which current interest rate decisions have their biggest effect. Thereafter, it drops back down again.

The predictions assume rates will be raised again during the second quarter. If they were not increased, the Bank believes that inflation would overshoot the target.

B of E Governor, Mervyn King, said inflation had been remarkably volatile by the standards of the past decade but the medium-term outlook was what mattered.

"Just as 3% inflation did not mean the end of the world was nigh, so 2.7% does not mean that we can ignore concerns about inflation ahead," he said. "The outlook over the next year is highly uncertain because of the large impact which reductions in gas and electricity prices are likely to have on inflation."

2007-02-09T18:20:00.000+01:00

Warning over cash-back phone offers

Citizens Advice Bureaux are reporting increasing numbers of people who have been lured into a mobile phone contract by a sales pitch promising they will be able to claim back most of the money they pay out in monthly bills, making it appear much cheaper than other contracts on offer.

People are tempted by very low monthly rates which look like a bargain. But often they miss out on the promised discount completely and end up paying the full rate – or even being chased by debt collectors and threatened with court.

The scam works because the cash-back offer is not part of the contract signed with the service provider who does the billing: it’s a separate contract with the shop selling the cash-back package.

Many cash-back deals have complex terms and conditions buried in small print, and claiming cash-back from them may not be as simple as consumers are sometimes led to believe.

In some cases the firm that should have paid the cash-back has gone bust, leaving consumers with a provider’s contract that is anything but cheap, and which ties them in for a minimum period before they can switch. Customers can find themselves out of pocket to the tune of hundreds of pounds.

In one case a CAB client signed a contract with a mobile phone company offering a monthly cash-back deal of £65, slashing the cost from £75 a month to £9.99. After six months the company went bust, and the network provider was demanding full payment of £75 a month.

In another case a client signed up to a package where she got a free mobile and £40 per month cash-back on her £60 payment. When the company who should have been paying that £40 ceased trading soon afterwards, she could not afford to keep up the full contractual payments to the network provider and is now being vigorously pursued by debt collectors.

Other cases, clearly cons, abound and include:

Missing the date for applying for the first cash-back payment, all future cash-back payment claims are invalidated.

Vouchers worth £1300 after paying 18 months rental. When the vouchers were sent they were returned address unknown.

A number of 12 month mobile phone contracts on the promise of cash-back payments after six months and 12 months. The company said they never received the cash-back applications in the post.

Citizens Advice consumer affairs social policy officer Susan Marks said: “Some cash-back deals work well for mobile phone users who sign up to them. But we are seeing growing numbers of people who lose money.”

“People are attracted to these deals because they appear to work out much cheaper than other mobile phone packages, but once the money is handed over it can prove impossible to get it back. In some cases people find the company concerned has vanished into thin air when the time comes that their refund is due.”

“Remember that it is much harder to get money back once you’ve handed it over, so don’t be tempted to pay up front on the promise of cash-back in the future unless you’re prepared to accept that you may never see that money again. Some of the deals which look a little more expensive at first sight may work out cheaper in the long run.”

2007-02-09T18:16:00.000+01:00

Self-employed to lose out in retirement

The self-employed are not all as young as one might expect, with almost six out of ten aged over 50 years old, a study shows. However, despite being around the corner from retirement, only a third are saving adequately for their retirement, and two in five are not saving at all, putting increased pressure on retirement income.

According to the study published by Scottish Widows, self employed people are under-saving significantly compared to their employed counterparts. With no access to the State Second Pension, no employer to contribute to their pensions and, under new reforms, no automatic enrolment in to personal accounts, this is putting them in a very vulnerable position, particularly those so close to retirement.

The Scottish Widows pension index, which tracks the percentage of the population saving adequately for retirement, currently stands at 46%. Of those employed in the public sector, this rises to 59% , the self-employed are more likely to not be saving at all and less likely to be saving adequately than their employed counterparts.

Ian Naismith, head of pensions market development, commented: “The position of the self-employed is a particular concern. Losing out on employer contributions, including in the proposed personal accounts, means that it is imperative they have a savings plan in place for their retirement.”

“What is more, over half only became self-employed in the last 5 years, highlighting how many of us currently in good employer schemes may find ourselves over 50 and having to strike out alone.”

“It is understandable that as people get older and have greater experience in their profession that they would want to opt for a more flexible lifestyle, but the financial implications of self-employment are still profound.”

The study reveals that under a quarter of self-employed people feel they are able to save regularly. On average they have both a higher mortgage debt of £146,945 and monthly non-mortgage debts of £9,643 compared to employed people, which is likely to impact on their capacity to save.

Not surprisingly, the self-employed are less optimistic about their retirement than their employed counterparts, with nearly a quarter (23%) believing that, realistically, they may not be able to afford to retire until they are 70 or over, compared to just 16% of employed people.

The study does suggest though that self-employed people are perhaps more motivated in their work. Nearly half (46%) of employed people stated they would stop work tomorrow if they could afford to, compared to 36% of self-employed people. The self-employed also stated that 67 would be the age they would begin to feel angry if they were still working; a good two years more than employed people who stated 65.

Ian Naismith said, “The inability to save is something both the industry and policymakers need to be aware of. With over half of this working group aged over 50 a large proportion will be soon be reaching an age of desired retirement with little personal pension provision in place to help them have a comfortable retirement. Many may well face having to work into their 70s to provide them with the necessary income to live off.”

2007-02-07T18:20:00.000+01:00

Homeowners put all their eggs in one basket

Nearly two thirds of homeowners in a study of English mortgage holders store almost all their savings in one single asset – their own home – new academic research from Durham University suggests.

The study highlights the danger that millions of families face should the value of the housing market drop or experience a crash similar to that of the late 1980s.

Ironically the initial findings of the two year Banking on Housing; Spending the Home project highlights that just under a third of mortgage holders do not even think of, or use, their owned homes as a means of storing or accumulating wealth, despite the fact that almost two thirds of these homeowners have no other savings investments apart from their home and pension.

"This study really draws attention to the precarious position of the majority of English homeowners' savings," said Professor Susan Smith. "While many would think it strange to invest everything they have into one particular company, to all intents and purposes more than seven million people in England are doing just this."

Professor Susan Smith added: “We found that most people understood and made good use of their mortgages to free up housing wealth to spend on other things. Most people agree that home equity should not be spent rashly but almost everyone we spoke to views their home as a financial buffer or safety net that they can cash in on if times get tough.”

“If the housing market did downturn and these safety nets disappeared the political, economic and social impact could be devastating.”

The academics believe there are several policy implications that will arise out of this project including the potential need for guidelines on how much to reinvest into housing to safeguard the future value and quality of the housing stock.

There is also the question of what, if people are using housing wealth as a safety net now, they will turn to in the future; and the issue of how best to manage, or hedge, the risks of having all your eggs in a single housing basket.

2007-02-06T19:04:00.000+01:00

Little Hampshire town set for 8,000 new homes

Up to 8,000 new homes could be built on land sold by the Ministry of Defence when the Army leaves the little town of Bordon in north east Hampshire.

For almost three years the Whitehill/Bordon Opportunity Group, made up of town, district and county councils, the MOD and government agencies have been developing a masterplan for the town.

The aim of the plan is to create a more sustainable future for the town by building a better mix of housing to attract investment for a new town centre, shops and leisure facilities.

Now the MoD has confirmed that up to 150 hectares of land it owns in Bordon will be privately sold after 1,800 military and civilian staff and students leave the town in 2011, which will now become the focus for regeneration efforts in the town.

The removal of the army garrison will mean job losses in the town and now revelations that not all of the land released is brownfield and indeed may be sold off piecemeal has sparked a great deal of public interest. Nevertheless, the army is going and many new homes are set for the area.

Ferris Cowper, leader of East Hampshire District Council, said: "This is a once in a lifetime opportunity to develop the town in a way that meets the needs of residents and creates a sustainable future for the area."

2007-02-06T19:02:00.000+01:00

The town where there’s no shortage of homes

Estate agents in the North-east town of Darlington reckon sheer numbers of new homes being built are driving prices down, the only place in the country where this is happening.

Land Registry figures showed that there were hardly any areas in England and Wales that did not share in the average 7.8% growth last year. But just one town, Darlington, managed to record a minus 0.4% drop to an average of £119,832.

The town is set for a pedestrian centre as part of a restoration project that will see many buildings demolished and did take part in a mini house price boom several years ago, but estate agents are ‘baffled’ reported the Independent newspaper. However, Simon Bainbridge, at local agents Smiths Gore, agreed that Darlington's poor performance could reflect the fact that there was no shortage of homes.

The ‘Pedestrian Heart’ project will introduce new enhancements to the town centre, creating a quality environment. Traffic is being re-organised making a series of safe pedestrian spaces.

2007-01-26T17:28:00.000+01:00

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.”

2007-01-26T17:26:00.000+01:00

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.”

2007-01-26T17:17:00.000+01:00

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.

2007-01-24T16:12:00.000+01:00

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.

2007-01-23T17:12:00.000+01:00

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.

2007-01-23T17:10:00.000+01:00

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.

2007-01-22T15:03:00.000+01:00

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.”

2007-01-19T15:51:00.000+01:00

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.”

2007-01-18T17:50:00.000+01:00

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!”

2007-01-17T17:18:00.000+01:00

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.

2007-01-16T14:46:00.000+01:00

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.”

2007-01-15T13:49:00.000+01:00

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/

2007-01-12T17:38:00.000+01:00

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

2007-01-10T13:25:00.000+01:00

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.”

2007-01-09T14:22:00.000+01:00

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.”

2007-01-05T13:59:00.000+01:00

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.

2007-01-04T18:49:00.000+01:00

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."

2006-12-20T18:38:00.000+01:00

Under-30s to struggle with bills this winter

With winter on our doorstep, recent research shows that under-thirties may struggle to pay the higher bills that go hand-in-hand with the dark and chilly nights of the festive season.

Over the penultimate quarter of 2006, almost a third of under-thirties (31%) were forced to raid their savings in order to meet the payments of unexpected bills, Birmingham Midshires' Saving Britain campaign revealed, and since then energy bills have risen 38%.

The lender’s research has found that that the over fifties were the best at budgeting for such a change, with 22% of this age group raiding savings to pay for unexpected bills. More than one in four (26%) people aged between 30 and 50 years were financially unprepared to pay their bills over the third quarter of the year.

Across the regions, Londoners may be the least prepared for unexpected bills over winter. Almost one in three (31%) Londoners had no choice but to dip into their savings to pay for bills throughout the third quarter of 2006. They were followed closely by 30% of unprepared Scots. In contrast, Northerners proved a shining example with just one in five (21%) relying on savings to cover unexpected bills.

Jason Robinson, director of savings & investments for Birmingham Midshires commented on the findings: "Our latest findings make for worrying reading as we move into the coldest season of the year. We all know that Christmas can be an expensive celebration and Britons need to make financial provisions in order to cope with the seasonal generosity as well as the increase in bills over the winter months.”

“Putting aside a little and often will ensure there is enough money in the rainy day account to cover most eventualities over the festive period.”

Other key findings:
Women were less prepared than men for unexpected bills (26% needed to raid their savings, compared with 24% of men).

Almost a quarter (24%) of Southerners were unprepared to pay off all their bills between July and September.

Midlanders and the Welsh were not far behind with 23% dipping into savings accounts to pay for unexpected bills.

2006-12-19T18:14:00.000+01:00

Landlords manoeuvre over looming issues

Capital values have increased and returns in the private rented sector have remained largely unchanged this autumn but bureaucracy is driving landlords who own Houses in Multiple Occupation out of their market.

The quarterly survey from the Association of Residential Letting Agents also showed that immigrants from the new European Union states are making less demands on rented property stock than many believe - but obtaining references on these prospective tenants is proving to be a major problem.

Adrian Turner, chief executive of ARLA said, "The mainstream rental market continues to flourish. It is only at the margins that trouble could arise if these two problems are not addressed swiftly."

Overall, the average asset value of houses to rent has increased by 7.4% in the last three months as a result of rises of 11.4% in prime central London and 21.3% in the rest of the UK. By contrast, the average value for houses in the South East outside prime central London fell by 4.4%.

In the same period, rented flats rose by an average of 4.7% for the country as a whole with increases in prime central London at 3.5% and the rest of the UK outside the South East increasing by 16%. In the rest of the South East, the value of flats fell marginally, by 0.3%.
Returns on asset values have changed little in the past three months, although achievable rent levels have increased overall. In the last three months rents have increased in prime central London but have remained largely unchanged in all other parts of the country.

The ARLA research carried out with the support of the ARLA Panel of Mortgage Lenders - Birmingham Midshires, GMAC Residential Funding, NatWest, Mortgage Express, Paragon Mortgages and The Mortgage Business - also revealed two significant new trends.

The latest three-monthly survey shows that well over half of those landlords who have disposed of properties used as Houses in Multiple Occupation have done so because of bureaucracy and too many new regulations. These factors are just as likely to have influenced decisions to abandon that part of the market as the additional costs of licenses and alterations.
On the question of immigration, the majority of letting agents describe incoming tenants from the new EU countries as only having some effect on the rental market. Just one in twenty believe that EU immigration has made any dramatic impact on the market.

The most significant problem for the private rented sector caused by the new immigration is the difficulty in checking references. One in twelve agents say it is proving impossible to get references on prospective tenants who come from the new EU accession states.

Unsurprisingly, immigrants have had the least effect on the rental market in prime central London. They have had the most effect away from the South East.

In London and the South East, the balance of supply and demand for rental properties has continued to improve. More than seven out of ten ARLA agents in prime central London report that there are more tenants than there are properties. This is an increase of ten percent over the previous three months.

Agents throughout the South East who also report more tenants than properties have increased from 34% to 37%. However, there is a small drop in the rest of the UK, with the number of agents reporting more tenants than properties falling from 34% to 32%.

Compared to the third quarter, the average void period has fallen from 26 to 25 days. This reflects properties remaining empty for shorter periods in both prime central London and the rest of the South East.

Once installed, tenants are staying put for an average of 15.7 months. This is up marginally from an average duration of 15.6 months reported at the end of the last quarter.

"These lengths of tenure suggest that the private rented sector is providing the sort of property that people want to live in as well as giving them choice and flexibility," Adrian Turner pointed out.

2006-12-18T17:33:00.000+01:00

Flood of properties set to halt price rises

Homeowners looking to sell on the crest of a buoyant property market, with prices at a record high at the end of 2006, are warned that it may have already peaked and prices will drop when new properties flood the market in 2007.

The latest figures from PrimeMove.com show there was a 20% increase in new instructions during November compared to October. Henry Pryor, founder of PrimeMove.com believes this is the result of home owners seizing the chance time to benefit from high prices and sell while the market is buoyant.

Henry Pryor warns that sellers should remain cautious. “Many homeowners are concerned about how long the property boom can continue and are selling their homes now to ensure they maximise their investment, even if this means they go into rented accommodation before buying later on,” he said.

The firm’s data also shows that in spite of the increase in instructions, the overall supply of property is at an historic low with 20% less properties on the market in November than October, driving prices artificially high. With more properties now entering the market and the problems of supply easing this could then see a plethora of highly priced homes sitting on the market in the first quarter of 2007.

Henry Pryor commented: “Although this injection of supply will mean a greater choice for buyers, the knock on effect could mean prices will fall if demand remains the same, signalling the end of the sellers’ market. Homeowners who need to sell, because of divorce or relocation, will need to price competitively to ensure a sale. As a result prices will be lower; potentially starting the slide and signalling the end of the boom.”

“Vendors who are serious about selling next year should listen to their estate agent and price their property realistically. With more choice, buyers will feel more confident of holding out for the right property and will only buy if a house looks to be priced fairly.”

“It is always hard to call the top or the bottom of a market, but I suspect that we may look back at the last quarter of 2006 and recognise that this was the peak of the market.”

2006-12-15T15:59:00.000+01:00

Don't get into festive swag mood

Burglars’ swag bags are set to be brimming for the next few weeks as we first hide presents in obvious places then throw out the packaging to advise what we have inside then, to top it all, we leave them all ripe for the taking while we party away on New Year’s Eve.
New Year’s Eve is the festive season’s worst day for burglary, according to Norwich Union claims data. Homes are 25% more likely to be burgled on 31 December than on a normal day as thieves take advantage of partygoers who leave their homes unoccupied and full of expensive gifts.

What’s more, the cost of a burglary over the festive season can be up to £350 higher than on a normal day due to all the extra goodies in the home, according to the insurer. The average burglary claim is around £1200.

So Norwich Union is urging homeowners to take extra security precautions over the festive season to ensure spirits aren’t dampened by thieves on the look-out for newly unwrapped presents.

What’s more, research by Norwich Union shows that homeowners give burglars a helping hand by hiding presents in obvious locations around the home such as wardrobes (44%), under the bed (23%), or in the shed (12%).

Jason Harris, senior claims manager at Norwich Union said: “Of course everyone wants to put their presents under the tree for Christmas but before the big day ensure they’re tucked away somewhere safe and not in full view to every passer-by.”

“The attic or loft is a good hiding place for presents – your average burglar doesn’t have time to climb into your attic and it’s also safe from excited children desperate to get a sneak preview of what they can expect on Christmas morning.”

“And at New Year make sure you double check your home before you embark on your night on the town – you don’t want to begin 2007 with a burglary.”

Because of all the extra items in the home over Christmas, Norwich Union gives an extra £3,000 worth of contents cover over the festive period.

But remember to consider all new gifts when it comes to renewing your home insurance in the New Year. That wide-screen TV may have just tipped your contents insurance over its limit!
Tips to a safe and happy Christmas:

Don’t discard whole gift boxes in your dustbin, as this could give thieves easy clues about what they might find in your home! Instead try breaking them up into small pieces and place them in your recycling bin or in a sealed bin bag

If you’re out and about on New Year’s Eve, leave lights on, ensure all doors and windows are securely locked and expensive gifts not in full view

Avoid leaving the keys in the lock inside when double locking – this will prevent burglars using the hook and cane method through your letterbox

Consider installing a burglar alarm either by an approved contractor or failing that by purchasing a system from one of the DIY chains. ‘Dummy Covers’ are a deterrent but if you can afford it a real one is better. (It may also get you a discount on your home insurance!)
Fit a motion sensor light which will work at any time whether you are in or out of the house.

Top 10 items stolen Christmas 2005
1
Mobile phones
2
iPods/MP3 players
3
Sat-Nav systems
4
Digital cameras
5
Games consoles
6
Laptops
7
LCD TVs
8
Designer watches
9
Pocket PCs
10
CDs/DVDs/Games

2006-12-14T18:44:00.000+01:00

UK slips to relegation zone in EU growth league

Despite economic growth picking up from 1.9 per cent in Q4 2005 to 2.7 per cent in Q3 2006, the United Kingdom has slipped three positions in the European Union growth league to 22nd position — or fourth bottom — over the same period, reports the Centre for Economics and Business Research...

Only three countries — France, Italy and Portugal — had lower third quarter year-on-year growth. With 2.8 per cent growth, Germany beat the United Kingdom to 21st place.

Unsurprisingly, as they catch-up economically, the fastest growing countries in the year to Q3 2006 were Estonia, Latvia and Slovakia. Surprise high performers include Finland (5th), Luxembourg (8th), Ireland (10th) and Sweden (11th). Finland — the highest ranking non-accession country recorded 6.6 per cent real growth in Q2 2006 whilst Luxembourg recorded 5.4 per cent — double that of the United Kingdom.

EU bouncing back
Assessing the United Kingdom’s performance so far through 2006, it appears to have done well when compared with 2005. However on another measure — the comparison against other countries in the same economic union of which the United Kingdom is a member — its performance looks rather weak, and for the first time in a long time. The question is why.

On one side of the argument continental Europe’s come back has proved rather spectacular. Apart from the boost from the World Cup (which also lifted growth in the United Kingdom) most countries, including Germany, the Netherlands, Finland, Sweden and Austria are bouncing back following very weak growth in the first half this decade. During that period they cut their unit costs, boosted productivity and their successful companies (such as Nokia, Siemens, BMW, Ericsson, SAP and Philips) have made the most of trade growth within the European Union and the growth in Asia and Latin America. As such, the European Union is becoming more of a specialised economy with member states doing what they are best at, and we are starting to see the benefits of this.

UK has a role to play
The United Kingdom clearly has a role to play in this big economy by being the European leader in finance and business services, just as the Germans lead the European car industry and the Finns the telecoms industry. In the United Kingdom the financial sector expanded 7.7 percent in real terms in the year to Q2 2006, and business services 6.6 per cent. So why has its economic upswing fallen short of the continent’s?

The main reason for this — which is the other side of the argument why the United Kingdom has slipped to fourth bottom — is that the United Kingdom has, other than in finance and business services, failed to improve its competitive position in the world economy in recent years. Business investment barely grew in the three years to 2005, whilst the government sector crowded out the labour market, raising labour unit costs — in contrast to the continent. Fundamentally, despite the migration inflow, the United Kingdom has failed to invest in its capital stock despite the migration boost: real net capital stock growth declined from 2.6 per cent in 1998 to 2.2 per cent in 2005 and 52 per cent of all jobs created between 1996 and 2006 were in public services.

Looking at the European Union growth league table, few of us one year ago would have expected the United Kingdom to be in the relegation zone, given the continent’s lacklustre performance. Yet despite the boost to productivity and the size of the labour force from immigration and the strides being made in finance and business services, the United Kingdom has so far failed to adequately grow its asset base. As a result, with productivity growing faster on the continent, it now seems a fair bet to make that the United Kingdom may remain in the relegation zone in the next few years. Good thing there is no second division...

2006-12-13T15:25:00.000+01:00

Nearly one in ten Brits live abroad

More than 198,000 British nationals moved overseas last year, bringing the total number of Brits abroad to more than 5.5 million, according to new research from the Institute for Public Policy Research, published this week...

The report says that a strong economy at home has encouraged emigration and that very few Britons leave because they think ‘the country has gone to the dogs’.ippr’s report shows that almost one in ten Britons now lives abroad and that a British national emigrates every three minutes. The report predicts that another one million Brits will move abroad over the next five years.

Where's everyone going?!
The report shows that Britain has more people living abroad than almost any other country. The top 10 countries where Brits live, together accounting for around 75 per cent of all Brits living abroad, are:

Australia 1.3 million, equivalent to 2 per cent of UK population
Spain 760,000
USA 680,000
Canada 600,000
Ireland 290,000
New Zealand 215,000
South Africa 212,000
France 200,000
Germany 115,000
Cyprus 59,000

The report says that Brits living abroad are also more spread out than any other nationals, with more than 10,000 Brits living in 41 countries around the world and another 71 countries with more than 1,000 Brits.

Language barriers
The report, which includes results from focus groups with Brits living abroad, identifies the inability to speak the local language as one of the biggest barrier to settling into an overseas community. The report highlights the difference between retired Brits living on the Costa del Sol where less than one out of four speak Spanish, compared to retired Brits in Tuscany where almost three out of four speak Italian. Brits in countries like Spain and Saudi Arabia also tend to flock together, in contrast to countries like Australia and the USA where they tend to be more dispersed across the country.

Danny Sriskandarajah, Associate Director of ippr, said, “When the going is good, Brits get going. A healthy economy at home, especially when house prices are buoyant and the pound is strong, makes it easier to up sticks and move abroad. From Australia to Zambia, Brits are looking for a better job, a better quality of life or a sunny retirement. Very few leave because they think the country has ‘gone to the dogs’.

“Britain does not just have the world's leading financial centre and the busiest international airport but is truly at the crossroads of the global movement of people. But our research also shows that for some emigrants, being ill-prepared or not knowing the local language can cloud their experience of a place in the sun.”

Trading places
Recent research from currency specialist HiFX echoes the findings of the IPPR report revealing that over half (51%) of the people emigrating from the UK are skilled trade workers. HiFX predicts that 1.37m tradesmen could have left the UK by 2016.
Mark Bodega, Marketing Director for HiFX, the currency specialists comments: “Australia, New Zealand and Canada, all of which feature in the top ten places for Brits to emigrate to, are facing a shortage of home grown skilled workers so they are marketing themselves as attractive propositions to UK workers who may be looking for a better work/life balance for their family or simply just sunnier climes.”

2006-12-11T19:15:00.000+01:00

Many investors will stay close to home in 2007

Many property investors will be keeping their money closer to home in 2007, with the UK in particular looking set to perform extremely well, along with Western European destinations such as France and Cyprus, reports Assetz...

This year has been one of strong and sustainable housing market growth in the UK. The six major UK house price indices show an average of 8.7% annualised growth for the twelve months to October 2006, primarily as a result of the continued imbalance between supply and demand. With lower risk, low purchasing costs and the prospect of self-management, many investors will choose UK buy-to-let rather than overseas holiday lets in 2007. This will be sensitive to interest rates but these are thought to have peaked at 5%.

London will continue to lead UK growth. In the prime central locations of Belgravia, Knightsbridge and Mayfair, price rises of 100% in real terms are possible over the next decade or less, from January 2006. For many city workers, international business people and jet setters, London is a location where they must own property and the weight of money versus shortage of supply in these quality locations will drive a dramatic price shift. Mortgages are not a concern for most and interest rates will have little effect on this market.

Established markets will be popular
While many investors have taken their money to emerging destinations such as Bulgaria and Croatia in the last couple of years in search of higher capital gains, more established markets such as France and Cyprus are now providing strong competition at considerably lower risk.

France is perceived as a high quality destination where investors can see themselves living on retirement, with an established infrastructure and secure property market. Similarly, the Cypriot property market is well positioned to perform well over the next twelve months. When Cyprus adopts the Euro in 2008 it will have to decrease interest rates to the currently lower Euro rate, making borrowing cheaper, which is likely to further strengthen the property market. In addition both destinations are now offering strong returns, with Assetz predicting 8% growth in France next year and 10% in Cyprus, as well as strong tourism markets and low-risk investment.

The continuing slide of the U.S. dollar means better buying opportunities will arise over the next year in the States. Those hoping to invest in the States next year should hold off until the market stabilises and offers the best opportunity to investors. It is not yet clear how severe the downturn in the economy and currency will be, but once the market has bottomed there are likely to be excellent opportunities for investors. International tourism will also soar as the currency rises above $2 to the pound, providing great demand for rentals.

Not all established markets offer safe bets, however. Capital growth in Spain has fallen from 12% earlier in the year to 10.8% currently and is likely to continue slowing into 2007, after which it will probably stabilise. British holiday home buyers will continue to support the market, which is also underpinned by strong demand from Spanish locals for their own holiday homes, as well high levels of tourism.

Emerging hotspots for 2007
Economic growth in locations like Poland will underpin the continuation of 20% plus capital gains in some of the newer European members during 2007. The latest Assetz Property Investment Tracker shows Poland has risen from third position to the top of the table, as a result of lenders halving the deposits required to invest in property to just 15%. This has raised the potential returns dramatically and will continue to do so as long as prices carry on rising consistently. Concerns are primarily over sourcing good property in the face of strong competition from local buyers.

Those looking to capitalise on emerging markets will be keeping a close watch on Turkey in particular, where mortgages were introduced in October 2006 enabling investors to borrow up to 80% LTV. Mortgage rates are quite high at 5.9%, but with capital growth strong at 20% and a surge in demand for property by local people pushing up prices, Turkey is making an impression on international holiday home investors.

The burgeoning change in the psyche of the German population from lifelong rental into property ownership presents considerable opportunity for investors. Growth is starting in cities such as Berlin, where, incredibly, just 13% of the population own their own homes compared to 43% in Germany as a whole, 66% in the UK or 85% in Spain. Interest in residential property is starting to increase, pushing up prices which are now typically still just €200,000 (£137,120) for a two or three-bedroom 100 square metre (1,100 square foot) apartment in a beautiful early nineteenth century building in an excellent area of central Berlin. That is just €2,000 a square metre compared to five times that or more in Paris, London and some other major European capital cities.

Going off the boil
Capital growth in Bulgaria is likely to continue taking a ‘breather’ in 2007 after fairly reductions in the rate of growth for 2006 compared to the prior year. Capital growth dropped from 36% in 2005 to 13.9% for the year to the end of September 2006, and is likely to level out at about 10% per annum for time being. Large deposit requirements with Bulgarian mortgages (minimum of 35% of the purchase price) are the prime reason that this level of growth does not allow it to compete with the UK, France or Cyprus in terms of total returns on cash invested for the investor. While Bulgaria still has value as a holiday home destination and is likely to be a reasonable investment for the long-term, the days of instant gains are over for the time being.

Growth in South Africa has slowed from 24.6% to 12.3% and is likely to continue falling next year. Mortgage rates, already high at 9% are possibly still rising. Yields have slipped from 10% to as low as 5% in 2006, so rental income will fail to make a profit for many investors. Prices however are still low, even for prestigious properties. Good-sized detached properties with pools can be bought for around £160,000 in prime Johannesburg suburbs with many other properties at just £60,000 or so.

Stuart Law, Managing Director of Assetz commented, “There has been a slight lowering in the rate of growth in many countries during 2006 and the UK is the first to bounce, but I suspect many others will follow next year including France, Spain and Bulgaria. With the UK performing so well, many investors will be opting for the low-risk approach and keeping their money in UK property, now it offers strong returns that can compete on the international stage.”

Assetz' Property Investment Outlook for 2007
HOT - Poland, UK, Turkey, Cyprus, France, Spain
WARM - Bulgaria, Croatia, Germany
COOL - South Africa, USA

2006-12-11T18:58:00.000+01:00

Landlords in Liverpool tax ‘leeway’ scrap

Thousands of property owners and investors are likely to be hit by a Liverpool council decision to scrap discounted rates on empty properties.

The decision, which is to go before the executive board this week is likely to boost council coffers by £3.6 million a year, reported icLiverpool.

Property owners are currently given six months' leeway when buildings become vacant, before they must start paying 50% of the council tax bill, but after the new financial year the reduction will be scrapped.

As well as boosting council coffers, the plan is intended to put an end to ‘land-banking’ where developers buy up sites and leave them untouched until the property market has improved and they can sell them on for large profits.

However, critics have called the proposal ‘anti-business’ and claim it will discourage investors from buying property in the city, undermining the council's recent pledge to become major players in inward investment.

2006-12-08T14:49:00.000+01:00

Up-market flats limit student choice

The National Union of Students has said that higher living costs, including the proliferation of up-market flats, could be preventing many people from going to their universities of choice.
The NUS report shows a 23% average increase in university accommodation revealing the increasing rent burden for students across the UK.

An increasing trend towards the use of private suppliers by universities is pushing the bar towards more luxurious en-suite accommodation - and developments by educational establishments are following suit.

The report highlights the need for institutions and private providers to be able to offer a range of accommodation, and to ensure that more-affordable accommodation is available to meet the needs of poorer students, who might be deterred from studying at a certain institution because of associated high housing costs.

Average weekly rent for university accommodation in 2006-2007 is £82, an increase of 23% since 2003-2004. Since 2001-2002 rents have risen by 37%.

55% of 2007-2008's accommodation will be developed in private partnerships or directly by the private sector. It can be predicted that private providers and private sector partnerships will account for the majority of all ‘university’ accommodation by 2010.

Private halls are providing more luxurious en-suite accommodation (39% of all student housing now consists of en suite accommodation). Accommodation developments by educational establishments are following suit.

There is an increased tendency for private sector rent levels to be less inclusive, with more 'add on' charges.

Private providers fare considerably less well than universities in providing accommodation to disabled students, and much less well in respect of housing dependants and students with caring responsibilities, said the report.

Wales is the cheapest area for student accommodation - it is 56% cheaper to live in Welsh student accommodation than London student accommodation with average rents under £70.00 per week.

Veronica King, NUS vice president (welfare) said “This is a timely reminder that the increased price and lack of choice of university accommodation will need to be addressed to truly ensure poorer students can access higher education.”

“For the students for whom luxury is not affordable, there is a significant risk that accommodation costs, coupled with the burden of top-up fees, may reduce affect their choice of where to go to university.”

NUS is calling for a halt to the privatization of university accommodation which is now setting the bar for all university accommodation by developing more and more up-market housing, and a start to the widening of the range and choice. This will be key in widening participation to university in the coming years."

2006-12-07T16:16:00.000+01:00

Valencia most popular with foreign purchasers

In the first quarter of 2006 Valencia enjoyed the highest number of sales to non-resident and foreign buyers of any Spanish region, according to a survey by Spanish bank Caixa Catalunya...

Overseas Property Professional magazine reports on a survey by Spanish bank Caixa Catalunya which reveals that Valencia drew the largest number of foreign and non-resident homebuyers in the first quarter of 2006 (buying 8,879 homes). Next most popular were the regions of Cataluna (5,778), Andalusia (4,028), Madrid (3,899) and Murcia (2,219); by contrast, Ceuta and Melilla were the least popular regions with foreign investors, with only 17 homes sold to non-nationals (just 17).

Overall, an eighth of all Spanish home sales in the first quarter of 2006 were made to foreign and non-resident buyers who purchased 33,241 out of a total of 233,669 homes on the market. The high levels of immigration to Spain between 1995 and 2005 have helped boost the Spanish economy, spurring on employment and consumer demand. Indeed, Caixa Catalunya found that as much as half of Spain's growth in private consumption can be attributable to Spain's growing expat population.

Riding on the crest of a wave
Valencialife.net reports that house prices in Valencia have risen by 11% over the last year and are showing no signs of slowing, with industry insiders predicting that prices will grow "by at least 10%" in 2007.

Next year, Valencia will host the world's most famous yacht race - the Americas Cup. Ahead of this prestigious event, Spain's third largest city is benefiting from £270 million investment in infrastructure, including the expansion of the metro, the road network and the airport as well as the construction of new hotels.

2006-12-01T15:21:00.000+01:00

The Diminishing Del Sol

Rising sea levels are threatening Spain's popular coastline,

Spain is a popular choice for most British holidaymakers, but because of the rapidly shrinking coastline, they could all soon be fighting for space to sunbathe, when visiting the white sandy beaches. The signs of global warming are evidently creeping upon us, sea levels in Spain are rising by 2.5 millimetres annually, according to a new study commissioned by the Spanish Environment Ministry.

By 2050 it has been forecast that the beaches will be pushed back by an average of 15 metres. The Albufera of Valencia and the delta of the River Ebro as well as the Dóana national park in south-west Spain, one of Europe's biggest nature reserves, will all suffer the consequences of rising water levels. The eastern Mediterranean coast is the worst affected, in some parts of the Costa del Sol, hotel owners have already asked for permission to bring in their own sand, as beaches begin to shrink and it has also been recommended that some sea walls need to be raised in Spanish ports.

The biggest impact from this will be on tourism and property investment. Spain has enjoyed stable economic growth and the Spanish property market is mature yet dynamic with many different types of properties to choose from across all provinces. However, some are already choosing not to put their money into properties on the coast. "I wouldn't buy a house in La Manga," said Professor Raúl Medina, referring to an area in the south-eastern region of Murcia popular with British holiday-home buyers. "It is a bad investment because I doubt that my children would be able to use it," he told the newspaper El País.

Moving inland
With 320 days of sunshine a year and 60% of tourists staying in private homes it is still an attractive option to buy and rent out your property. There are many places inland that are still underdeveloped and this could lead to new and emerging markets in Spain. Inland regions such as Jaen, Granada and Cordoba have seen high demand as buyers seek alternatives to the over crowded Costa del Sol.

Although it is natural to associate Spain with beaches, the country has a great deal more to offer than beach holidays. Ski resorts in Granada province are very popular in winter and it has the second highest mountain range in Europe, the Sierra Nevada National Park, an uninhabited rugged wilderness with snow on its peaks for most of the year. It also has some superb climbing and mountaineering opportunities. This area can offer the same type of rental market that you would find on a coastal resort.

Despite the shrinking beaches, Spain will still prove to be popular with tourists and property investors alike simply because of the country’s Mediterranean climate and economic stability. Investing inland away from the coastline does not mean that you will be missing out financially, ski developments are very lucrative and there will always be new and emerging markets elsewhere. The key to Spain’s future will be in preservation and although global warming is the cause, much can be done to prevent Spain losing its beaches forever.

Indeed, Disney hopes so. The American giant has recently announced that they will be building a new theme park in the Costa Del Sol...

2006-11-30T13:38:00.000+01:00

Online advice is fine but one-to-one is better

Despite the reported popularity of internet use amongst the over-50s and the emergence of the ‘silver surfers’, new research shows that today’s retirees prefer human interaction when either researching or getting advice on financial matters.

Prudential’s research shows that less than a quarter (24%) of over 50s would consider using the Internet to research a financial product as they are opting to speak with friends & family as well as their bank or product provider.

The human touch
Whilst over two thirds of respondents (70%) stated that they are more confident in making financial decisions now than when they were younger, the research highlights that most still prefer human interaction during the financial advice process. 71% of the over 50s would like to receive advice face-to-face, with just 15% stating they would like to receive advice over the phone.

While it is apparent that some (24%) of the over-50s are still utilising the online approach as part of their information gathering, many are opting for the traditional offline approach. One-to-one interaction such as speaking to their bank or building society or their friends and family, top the list of preferred research methods (41% and 40% respectively) instead.

Women controlling their own finances
Prudential’s research further found that women are more confident than men in making financial decisions in their 50s and beyond. Seventy Four% (74%) of women stated they are more confident now, than when they were younger – compared to only 66% of men.

And while women state that they are more confident in their financial decision making than before, they are also using a different method to research the options available to them. Women opt for ‘real life’ recommendations as their first choice, naming their friends and family as their first port of call for financial research. Men, in contrast named speaking to their bank and building as their first choice for researching financial products.

Buying financial products the traditional way
When asked about which financial products the over 50s would prefer to buy the ‘traditional way’ – having met face-to-face with a financial representative, over two thirds (39%) stated savings products, followed by investment products (35%).

Ali Crossley, director for lifetime mortgages at Prudential comments: “It is interesting to see that while more and more financial services are available to us online, for many people this only provides part of the solution to understanding more about their financial needs.”

“While it is important to have online facilities that provide information on financial products, our research has shown that face-to-face advice resonates strongly with customers.”

“In line with this result, we have recently launched a face-to-face sales force, advising on Prudential’s flexible lifetime mortgage. Extending our commitment to allow customers access to qualified Prudential advisers who can visit and talk to people in their own home, at times and in surroundings they are comfortable with, is a logical progression for our business.”

2006-11-29T16:45:00.000+01:00

Number of Brits owning property abroad trebles

The number of UK households owning property overseas has trebled in the last ten years, reports Grant Thornton...

Leading business and financial advisers, Grant Thornton, have recently published new research showing that the number of properties owned overseas by UK households has almost trebled from 102,000 in 1995 to an estimated 300,000 in 2006. If this trend continues, there could be around 1.3 million British nationals living abroad by 2025.

The analysis, undertaken in association with Lombard Street Research (LSR), puts a definitive figure of 2% of the UK population on owning a property overseas and identifies the typical owner as either a pensioner with their main residence abroad, or an affluent person above the age of 45 owning a second home overseas as an investment or as a holiday home.

Maurice Fitzpatrick, Senior Tax Manager at Grant Thornton commented, "We anticipate that the trend of a gently rising number of people deciding to leave the UK permanently and live abroad (upon retirement) will continue. If this trend continues at the same rate, by 2025 there could be around 1.3 million British nationals firmly settled in another country and drawing a pension".

Brits buying foreign property increasingly for investment reasons

The Survey of English Housing (SEH) found that investment was a more popular reason for purchasing a foreign property than wanting a holiday or retirement home, with 40% of respondents citing this as their main motivation in buying compared to 38% who were more interested in the lifestyle implications. This trend of overseas property being purchased as an investment has increased. In 1999 30% quoted investment as the purpose of their purchase rising to 40% in 2004.

The report closely examines tax considerations for individuals purchasing property abroad, highlighting the opportunities and pitfalls. In particular, it looks at capital gains tax and income tax considerations if a property is owned overseas, explaining some of the planning options to consider. The report then looks at how tax systems operate in popular destinations such as France, Spain and America.

Mike Warburton, Senior Tax Partner at Grant Thornton commented, "Purchasing a property abroad has important tax implications. Contrary to popular belief, you are still subject to tax on your offshore income and capital gains if you are a UK resident and domiciled. And, if the UK tax system is not complicated enough, the purchaser of a property abroad has to cope with a local tax system that may be culturally dissimilar to our own".

Demand for overseas property linked to fortunes of UK housing market

The analysis finds that demand for property overseas is intrinsically linked to the UK property market, and asserts that given the current level of interest rates and income levels the UK housing market is set for another good year during 2006. However it suggests that there is a danger of house price bubble in 2008-2009 which would have an adverse effect on demand for property abroad.

The report also points out that demographic changes over the next 10 years could have a positive effect on overseas property demand due to the fact that 70% of the heads of households who own a second home are currently aged 45 and over and in the next 10 years this age group will significantly increase.

Maurice Fitzpatrick, Senior Tax Manager at Grant Thornton comments, "Any continued increase in overseas second home ownership is heavily dependent on the strength of the UK property market and the wealth it generates. It is this liquidity which influences people in taking the necessary steps to invest abroad. By 2025 this could mean that 1.5 million to 2 million households in the UK will own a property overseas, an amount which would equate to one-tenth of UK property owners".

2006-11-28T18:06:00.000+01:00

Property prices push first-time buyers abroad

3.8 million first time buyers would consider buying abroad just to get onto the property ladder, according to the new research from MRI Overseas Property...

One in three Brits (32%) would consider buying a property abroad just to get onto the housing ladder, according to the new research from MRI Overseas Property.

The pressure of the UK housing market is having the most significant effect on 18-29 year olds when it comes to considering their options to get onto the housing ladder.

Almost three quarters (71%) of 18-29 year olds would consider buying abroad and four in ten (39%) of them who don't currently own their own property would consider purchasing a property abroad as a means of getting a foot on the ladder.

The stereotype of overseas property owners as retired holiday home-owners is also changing as one in five (21%) 18-29 year olds who would consider buying abroad would now buy a property abroad as a financial investment.

Londoners first to go
First time buyers in London under pressure from the capital's sky-high property prices are anxious to find a means to owning their own house. 41% would turn to buying a property abroad as a potential solution. However, only 24% of Scots are prepared to follow suit.

Darragh MacAnthony, Group Chairman of MRI Overseas Property, said: "The UK property market's ever-increasing prices are now having a serious impact on people's attitudes towards buying property in Britain. With so many young people unable to get onto the property ladder, buying a property abroad can seem an attractive option, either as a means of generating a financial return or to experience living abroad at a time in their lives when they have less ties to home.

MacAnthony continued: "For the thousands of Brits planning to buy a home abroad the most important thing is to do their research. Research into which country and region is right for their needs, what the legal requirements are and what the additional cost implications should not be underestimated. Making the right decision is critical whether you are looking in Spain or Brazil. Buying a property in any location is a decision that should not be entered into lightly as it's a big responsibility, especially for first time buyers."

2006-11-27T15:44:00.000+01:00

Why the housing market will not crash

With the average price of a house likely to have reached £200,000 and residential property making up 53% of household net wealth, whether the housing market is going to crash or otherwise makes regular pub conversation.

It is quite easy at a first level to worry that the market could crash in the next few years, argues a report from the centre for economics and business research. With house prices rising by 10.2% on average every year since 1996 and average gross earnings rising 4.2% every year, the ratio of house prices to incomes has increased from 4.4 to 7.9 in the same period. It is an easy and lazy argument to make that the house price inflation seen in recent years is driven by speculation — and we all know that speculative bubbles must all eventually burst.

However, says the cebr, there is one fundamental problem with the housing market in the United Kingdom that will prevent a housing market bust: the demand for houses by far exceeds the supply of houses. This fundamental mismatch, which developed after the housing market fully recovered in 1996 from the 1989 crash, is caused by a number of factors — which are likely to persist in the foreseeable future.

First, the United Kingdom does not have a large enough stock of houses. In 2005, 193,000 new houses were built — the highest in over fifteen years. In her housing review in 2003, Kate Barker said that to bring real house price growth down by a significant amount, the United Kingdom needs to build 245,000 houses every year. Government planning restrictions and schemes such as key worker housing prevent the construction sector from fully responding to the house market’s price signal.

Second, population growth — boosted because more of the world’s people want to live in the United Kingdom — and an ever smaller household size means that there are more people who need to live in houses than ever before and, also, that more houses are needed per person.

Third, when thinking about buying a house, potential house buyers do not compare their income to the price of a house. Rather, they compare their income to their annual mortgage payments. With interest rates at or below 5.0% in recent years, mortgages remain affordable when compared with the early 1990s. Although mortgage payments as a share of household income have risen from 15.0% in 2001 to 19.6% in 2005, they remain well below the 34% recorded during the 1989 crash.

Fourth, the new large and rich countries of the world — oil producing countries and the Asian dragons — remain happy to park their new found wealth in the world’s main financial centres: New York and London. A significant amount of money that flows in to the City of London, by one mode or another, ends up in the property market.

Fifth, because of the nature of economic growth it is natural that certain areas of the country will see more economic activity as the economy expands. Because of lack of transport infrastructure, these growth areas are unable to geographically increase their labour catchment areas, meaning that more people need to live in certain locations — exacerbating the mismatch of supply and demand.

Looking forward, as long as supply continues to fail to react to the burgeoning demand for housing, it is very unlikely that house prices will crash. In our latest house price forecast, we see inflation slow from an average 8.2% this year to 4.6% next year and 1.3% in 2008, before picking up again. Higher interest rates, tight household bills and the world economic slowdown will cut back house price inflation, making talk of a possible crash more of a pub topic. But as long as the fundamentals remain unchanged, a housing bust is very much off the cards.

2006-11-24T18:01:00.000+01:00

Moving? Get your broadband sorted early

Broadband deals are tricky enough to navigate at the best of times, but if you are moving home you’ll have an additional hassle to negotiate.

Part of the trouble comes because broadband suppliers are using a raft of tricks and ploys to discourage people from swapping suppliers.

One in six people with broadband (15%) admit their confusion about broadband deals is the reason they haven’t switched providers, price comparison website moneysupermarket.com discovered.

Migration Authorisation Codes have long been a bugbear for broadband switchers. Similar to mobile PAC codes (Porting Authorising Codes), someone switching broadband providers needs to give a MAC reference number from their existing provider in order for broadband connection to be immediately switched to the new provider. Without a MAC code the connection has to be terminated and then switched on again, which can leave people without broadband for weeks.

However, as MAC codes are only a voluntary scheme, there are still some providers who will not give them out to their customers, consequently making it difficult for people to switch.

According to OFCOM, some of the broadband providers who have not signed-up to the MAC code scheme include Tesco Broadband, Talk Talk and PlusNet.

Penalised for moving home

If people are planning on moving house, charges from a broadband provider range from £24 – £150 to switch the service to the new property. Some providers, such as PIPEX, will even reset contract terms so customers start a new 12-month contract when they move in.

Movers may also find the phone line has been blocked by a previous broadband provider, adding weeks of frustration, delays and additional costs to discover which provider was responsible. If broadband is essential to you – say if you intend to work from home - it would certainly be wise to investigate the broadband status of the property before making an offer on the property.

Another hidden charge is a term of the ‘no minimum contract’ deal offered by providers such as Virgin.net, PlusNet, biscit and EFH Broadband. These deals are supposed to offer flexibility rather than locking people into a long contract period, but in reality consumers would still be hit with a typical cancellation fee of between £50 and £70 if you leave within the first twelve months.

Even after a year people would still have to give between one and three months’ notice before they could terminate the contract.

Be prepared to contact your provider well in advance of moving home as you may find a minefield of red tape top go through – even if you are staying with the same provider.
Jason Lloyd, head of broadband at www.moneysupermarket.com, said: “Unfortunately few broadband providers’ deals are as good as they first seem. Some advertised ‘free services’ will incur a monthly fee after a year, so I would urge people to double check the small print before signing up to a new broadband deal to guard against any hidden charges.”

“If you are having problems with your existing provider, it could be worth letting them know you are thinking about leaving the contract to see if they can offer a better deal.”

Charged to upgrade

People are used to upgrading their mobile phone for free with their mobile operator but upgrading to the latest broadband deal is often costly. Broadband providers make it difficult for customers to upgrade to better deals by charging them for new hardware as well as a switching charge. Many providers will upgrade your speed for free if the network has improved, but will charge around £20 as a one-off fee for doing so.

Lloyd added: “It is clear providers are using underhand methods to prevent their customers being tempted away by the range of attractive broadband offers. Hidden charges and a lack of transparency by providers are the main reasons for switching inertia.”

“The first port of call for anyone considering switching should be to speak with their existing provider about what they can offer. In most cases they will have cancellation teams in place who will invariably offer a better deal to anyone threatening to terminate their contract.”

2006-11-21T18:36:00.000+01:00

Tough time for London’s first-time buyers

London's property market remains buoyant, resulting in prices reaching new record levels, according to Rightmove’s latest research.

But this is creating an unaffordability spiral with potential first-time buyers renting for longer and boosting the buy-to-let market, thus pushing up property prices even higher.

The average asking price in Greater London is now at £344,949, a 2.8% monthly rise and an 18.2% annual increase, said Rightmove.

Demand is still outstripping supply with top end addresses continuing to see a mini-boom and break new landmarks. Average property prices in Kensington & Chelsea have now surpassed the one million pound threshold. Hammersmith & Fulham, Kingston-upon-Thames and Wandsworth, which have all seen substantial annual price increases, have also risen in value since last month.

Miles Shipside, Rightmove's commercial director, commented: "The divide between London and the rest of the country is still growing. The capital is leading the way, with prices 50% higher than the national average.”

“This head of steam could mean that the hike in interest rates to 5% will not affect the majority of the London property market.”

Forget about first-time in London

Miles Shipside continued: “However, many first-time buyers can almost forget about owning a property in London. Average house prices are now 4.4 times income, compared with 2.6 times in 1970, making it the least affordable city in the UK.”

“Rising prices also mean only 2% of the capital's properties are below the stamp duty threshold of £125,000, so nearly all first time buyers have to find at least another 1% to fund their first home.”

Sloshing money undermining market stability

The extraordinary amount of money around in London at the moment isn't helping the market to stabilise.

“It is a tough time for first time buyers who have to rent for a longer period of time than ever before, leading to a more and more buoyant buy-to-let market which in turn causes prices to rise even higher," said Miles Shipside.

2006-11-20T14:18:00.000+01:00

First-time no-goers look to Spanish home first

UK residents buying a home in Spain, has for the most part, been a second-home or retirement purchase. But an international report points to an increasing number of under 25s getting on the property ladder aboard, while they can’t yet purchase a house at home.

The gap between the ground and that first step onto the property ladder is so great in the UK that most under 30’s are to stay at home or rent for longer today than ever before. According to a recent survey the number of under 25’s who own their own home has decreased from 35% to 22%, the lowest in two decades, house prices are almost five times higher than that of 20 years ago.

Owning overseas property is becoming more favourable for first time buyers as it is often cheaper than in the UK and the returns can make for an excellent investment. It is also a lot easier to buy overseas property than you may think.

Spain is the most popular choice to own a second home making it a land of opportunities for those new to the property market. A survey commissioned by Atlas International confirmed that 22% of those aged 16-24 years were considering purchasing property abroad as their long-term aspiration. With property prices starting from £65,000 on the south coast there is more to Spain than sun, sea and sangria.

Why is Spain the number one destination?
It’s close to home. Spain is a mere two hours away and flights throughout the UK and Ireland are inexpensive and frequent. If you are looking for a buy-to-let purchase or simply a place to spend multiple short-breaks throughout the year, Spain is the first choice. With some of the best beaches in the world and annual average temperatures of 18°C, Spain will always be a popular destination.

It’s a central base in Spain. This could be your start to discovering Spain, whilst property prices are still relatively cheap, an investment here doesn’t have to restrict you to the south coast. Madrid is a 3 hour direct train journey from Alicante, so visiting the Spanish capital is easily accessible.

Make the most of the Mediterranean with the world famous coast of Tarifa in Andalucia, the most southern part of Europe. The wind here blows throughout the year, making it the perfect climate for surfing and wind surfing. There is also the island of Tabarca, just 11 nautical miles from Alicante, a popular location for snorkelling.

Further south in Almeria is the Sierra Nevada, Spain’s number one location for winter sports. With five months of snow between November and April, a holiday during the winter is just a short drive from the coast. Ibiza is a 30 minute flight away from Alicante airport if you want to cross over to this Balearic Island.

Bricks and Mortar. Buying overseas property is a lifetime investment and the options are flexible to suit your needs, for example choosing to rent your property and then later use as a holiday home or for when you retire, it’s totally up to you.Spain has seen one of the largest economic growths in Europe over the last five years with regards to property and a continuing strong economic growth and low interest rates confirming that Spanish property is a good investment.

Work in Spain. To relocate permanently or as a stop gap, having your own place in Spain can make this a real option. As an EU member, working in Spain is not too dissimilar from here in the UK. With a minimum of 30 days annual leave and 12 public holidays a year, Spain has to be the ideal place to work.

2006-11-17T16:03:00.000+01:00

First-time buyers bounce back

The good news is first-time buyers increased their share of the market by the largest amount for over a year and a half in October. However, the housing market in some areas of the country is slowing to the point of faltering, according to a report from the National Association of Estate Agents.

Average asking price October 2006
£226,768
Average asking price September 2006
£208,617

The overall national picture for the property market in October showed a buoyant market place in advance of interest rate rises announced earlier this month, said the report.

However, the national story is being led by the ever strong South East, whilst other regions are reporting a slow down in activity. The vast regional differences mean that some areas of the country have housing markets that are beginning to falter.

The number of house buyers and houses for sale on estate agents books were both proportionally up from figures reported in September, although people looking to buy decreased from the same period last year. Actual house sales remained level from September but, encouragingly, had increased from October 2005.

First time buyers bounce back

First-time buyers made a dramatic return to the housing market in October increasing their market share to an encouraging 16.4%; this is up from 11.1% in September. This is the highest percentage of first time buyers reported since April 2005 when first time buyers accounted for a healthy 23.6% of the market.

This increase could be akin to a slow down in the market with first time buyers taking advantage of a decrease in buyers on books. However, the interest rate rise will certainly work against this vulnerable sector.

Sales up 7.7% from October 2005

Completed sales in October remained at a level from the previous month revealing a consistent housing market. Agents reported an average of 14 sales each, as buyers rush to move before the forthcoming festive period.

Reflective of the strong market seen throughout 2006, sales had increased by 7.7% from the same period last year increasing from 13 sales per agent.
Housing stock replenishes as buyers sit back

The number of people looking to buy property increased in October by 4% from September as estate agents were involved in the yearly pre-Christmas rush. However, buyers were down by 3.5% from the same period last year as consumers in some parts of the country could have been deterred by the widely anticipated hike in interest rates at the start of November.

Housing stock replenished slightly in October with an average of 64 properties for sale per agent, up from 61 in September, a 4.9% increase. This is also a 4.95 increase from October 2005.

Decrease in failed transactions

The percentage of failed sales in the housing market decreased in October to 8.4% from 9.85% in September.

Regional differences apply

NAEA President, Charles Smailes, commented: “October is often a busy month in estate agency as people endeavour to be in situ before the festive period, which means realistically they need to be agreeing a purchase in the next couple of weeks.”

“I am delighted to see some first-time buyers coming back to the market, but I am also concerned that the rise in interest rates and the further rises rumoured for the New Year will significantly disadvantage people trying to climb onto the property ladder.”

“The overall picture is that of a healthy active market, however regional difference applies, with some areas beginning to look quite flat, whilst the South East looks extremely strong. I encourage sellers to take heed of their estate agents advice and lower asking prices where necessary in order to attract a sale.”

2006-11-16T17:42:00.000+01:00

Surveyors confident as prices hit 4-yr record

House prices rose at the fastest pace in more than four years in October with the lack of available housing continuing to drive the trend upwards, the Royal Institution of Chartered Surveyors said today.

The report from RICS said 48.1% more of its members reported a rise in prices than a fall during the month, up from 45.7% in August. This was more than double the long run average of 21%, RICS said.

Along with rising prices, there was also an increase in enquiries by new buyers. This is the 17th month in a row there has been an increase in inquiries - the longest run RICS has ever seen.
Confidence in sales amongst RICS members fell slightly but the expected interest rate rise in November did little to dampen optimism over price outlook.

RICS's spokesman Ian Perry said, "Even after last week's interest rate rise, surveyors are still confident that the housing market will remain buoyant."

According to the survey of members, London and the South East continued to lead the charge. House prices in the capital accelerated at the fastest pace since June 1999

But this revival is not good news for all, with the first rung on the property ladder moving further away from first-time buyers.

Mr Perry said, "London continues to see city bonuses inflate the housing market beyond the accessibility levels of most first-time buyers, and the rest of nation is showing early signs of building up momentum as prices pick up in the laggard markets of the midlands and northern England."

"But the market is unlikely to feel cold winds from high finance costs until mid year at the earliest as economic conditions are favourable," he added.

2006-11-14T15:52:00.000+01:00

House prices surge, but is this a bad time?

Asking prices for UK homes took a 1.3% leap in November, according to the latest asking price index from Home.co.uk. This means that nationally, average house prices have increased for three, successive months and is a sure sign that sellers’ confidence is growing.

Asking prices for homes, currently on the market, in England and Wales increased by 1.3% this month making November the third month in a row of consecutive price rises, according to the latest asking price index from Home.co.uk.

This further rise takes the 12-month change in average asking prices into positive territory for the first time since December 05 and now stands at +0.5%.

Confidence amongst sellers of residential property has increased markedly over recent months as indicated by a plentiful supply of properties new on the market with higher asking prices.

House prices surge toward a ‘tipping point’

A rally in asking prices signals an up-lift in market sentiment and a new upward trend, but the timing could not be worse, argues Home.co.uk.

These asking price rises come in the wake of September’s interest rate hike by the Bank of England suggesting this initial inflation fighting measure was ‘too little too late’ to tame the inflationary pressures faced by the economy. This month, the UK central bank issued a further dose.

Will this second hike have the desired gentle braking effect on the run-away train that is the UK property market or will it stop dead in its tracks?

The combination of rising asking prices and interest rates is taking the UK property market into dangerous territory. In Q1 2005, high asking prices caused the number of monthly transactions to plummet. The market wobbled before transaction levels recovered through cuts in asking prices and the Bank of England base rate.

The market looks set to wobble again. Increases in the cost of borrowing coupled with rising asking prices are likely to slash transaction volumes and drive the market toward a ‘tipping point’.

If the housing market retains some fluidity, the short-term outlook for first time buyers is bleak.

Director of Home.co.uk, Doug Shephard laments: “Since 2004 we had observed a slow, downward trend in house prices - it looked as though the affordability gap for first-time buyers was closing as the ‘froth’ melted away. Over the last six months, the opposite trend has emerged. With sellers’ confidence in the market on the rise and increasing interest rates, the affordability gap for first-time buyers is rapidly widening,”

Caught between a rock and hard place, the Monetary Policy Committee (MPC) has no choice but to try bringing inflation under control. However cautious the approach, their actions could trigger a severe downturn in the UK housing market. The risk of reaching the ‘tipping point’ is real, similarly inflated property markets in Australia and the US have already tumbled, because of inflation fighting, interest rate hikes.

2006-11-13T16:03:00.000+01:00

Millions of hours gazing at homes abroad

British holidaymakers have spent almost 22 million hours gazing into foreign estate agent windows in search of the perfect property in the past two summers, according to new research...

The ‘Holiday Habits’ study was commissioned by property investment specialists, The Inside Track Group. Results show that 45% of UK adults venturing out of the country for holidays each spend an average of one hour and 25 minutes looking at local listings for houses and apartments for sale.

The Inside Track Group reports that around 2.2 million UK nationals already own somewhere abroad, and many more who journeyed overseas this summer are seemingly set to join them. Many Britons look to buy a second home in their favourite country to holiday in. According to the most recent Office for National Statistics figures, the top five most popular holiday destinations are:

1. Spain (30%)
2. France (18%)
3. Greece (7%)
4. USA (5%)
5. Italy (5%)

Such interest in foreign property investment has prompted The Inside Track Group to publish its ‘Top Ten Tips’ for buying abroad, to help British investors avoid potential pitfalls.

“It is clear from the results of our study that actually being in a foreign country makes the idea of buying property there much more appealing,” says Inside Track Group chief operating officer Anthony McKay. “Two in five (40%) of the people we spoke to said being away had made them think more seriously about investing in a property abroad, and that’s encouraging as it can provide a very good return on investment.

“What people must remember, though, is that the process can be very complicated, and a good deal of preparation must be done before parting with any money. It’s not simply a case of finding somewhere in the estate agent window and buying it. Our guide to investing in property abroad will show buyers exactly the right process for finding that place in the sun and make sure they cover all bases to secure a sound investment.

The Inside Track Group’s ‘Top Ten Tips’ for buying abroad are available to download at www.iaprops.com.

2006-11-10T15:32:00.000+01:00

Deterring burglars in the winter months

The winter months mean more than the advent of colder weather. Longer periods of darkness can provide extra cover for burglars and vandals. Securing your home has never been as vital as it now.

Fortunately, effectively securing your home is easy to do and doesn’t cost the earth. These initiatives, combined with sensible precautions, will make your home more difficult to break into.

You can get a handyman in to fit any of the home security improvements shown below, but even a first-time DIYer will be able to carry them out themselves, following advice from the supplier. Good DIY stores carry a range of free help leaflets and B&Q and others produce DIY handbooks that cover a wide range of household jobs.

There are several key entry points to your home and garden, which should be a good starting point.

Doors

Your front door should be fitted with a mortise lock that carries the British Standard Kitemark, rack bolts top and bottom, a viewer and a door chain. Mortise locks shoot a hardened steel bolt into a keeper recessed into the frame when the key is turned. Obtain greater security by fixing one to front and back doors. They are not very expensive, less than £20 each.

Door viewers cost around a fiver but for that extra technological edge, spyhole camera kits which transmit the view of your doorstep to your TV can be bought for under £40.

Outside

Security lights are ideal for illuminating darkened areas such as pathways to the rear of your property. Security lights that become activated through movement sensors start from well under a tenner and are ideal for side or back doors, where burglars generally prefer to break in, where they are less likely to be seen. Make sure you don’t buy over-bright ones that create dark shadows for burglars to hide in and make sure you fit them down-ward facing so they don’t cause a nuisance to your neighbours or light pollution.

Windows

Your windows, as well as your doors, will also need securing. Fit window locks to all frames – particularly if they are easy to access. Laminated glass or double glazing is more difficult to break through quietly. Make sure your putty or glazing beads are in good order so that a pane of glass cannot be easily removed. If you have French windows, each closing door should be fitted with locking bolts top and bottom. Make certain that sliding doors cannot be sprung or lifted off their runners.

Alarm system

Every home should be fitted with an alarm system. Not only do they provide peace of mind, but the presence of an alarm box on the side of your property is a strong deterrent to any potential intruder. There are several choices when it comes to installing security alarms in your home. Infrared movement detectors fitted high up in the corners of each room will activate the alarm if they sense a door opening or the movement of an intruder, although these can be triggered by pets moving about. Alternatively, magnetic contact detectors installed on doors and windows trigger the alarm if the magnetic plates are disturbed.

There are types that work by wireless so there is little or no wiring to install around the home.

Further sensible precautions

If you are leaving your property empty for any significant period, it is a good idea to invest in a few timed light fittings to place around the house which will switch on and off automatically, as if someone were there.

It is also a good idea to ask a neighbour to park their car in your driveway if your driveway is empty.
Portable valuables may be best transferred to your bank or safety deposit centre, or install your own safe.
Invest in a UV pen and write your postcode on possessions, such as TVs, DVD Players, and other valuable equipment.
More information

It is a good idea to contact your local Crime Prevention Officer via your local police station for further advice and information. Staff at your local DIY store should be able to help too. Larger B&Q DIY stores even run training courses on various subjects – some just for women.

2006-11-09T14:13:00.000+01:00

Bank rate rises to 5%

Despite calls from housing industry experts and business leaders to hold interest rate steady, the Bank of England’s Monetary Policy Committee today raised rates by 0.25% to 5%.

Mortgage holders are mostly braced for the impact, but many will now see Christmas as a bleaker prospect. Homeowners with an £80K mortgage can expect to see their monthly repayments increase by around £13.

And the already financially-stretched band of credit loving consumers will also begin to feel the pinch as next month’s increased credit card charges appear on their bills.

The rise comes as cooling inflation and high street spending figures have shown August’s increase may have taken hold.

However the MPC is clearly becoming jittery about the continued above-target inflation figures since early summer. Their report said:

“The UK economy has recorded its fourth consecutive quarter of firm growth. Household spending has been volatile, but the underlying picture appears to be one of moderate expansion. The recovery in business investment has been maintained. The outlook for growth in the United Kingdom’s main export markets remains positive. Credit and broad money growth remain rapid, and asset prices have continued to rise.

Although unemployment has continued to edge up, the margin of spare capacity within businesses appears limited. Oil prices have dropped back, but there are signs that other pricing pressures have picked up. CPI inflation was 2.4% in September. It is likely that inflation will rise further above the target in the near term, but then fall back as energy and import price inflation abate.

Against that background, the Committee judged that an increase in Bank Rate of 0.25 percentage points to 5.0% was necessary to bring CPI inflation back to the target in the medium term.”

2006-11-08T16:46:00.000+01:00

Every home now has nine potential buyers

There are now on average nine homebuyers for every new instruction coming onto the market in the UK, according to a report from a joint venture property company report.

New research from CBRE Hamptons International, a joint venture between two big names in property, shows that there are now on average nine homebuyers for every new home coming onto the market in the UK.

The Q3 report from CBRE and Hamptons international finds that due to a 20% year-on-year fall in the number of new homes coming onto the market combined with a 44% increase in the number of buyers, the market remains significantly imbalanced.

The result of this disparity is good news for sellers.

Average residential property prices increased by just over 2% in the third quarter, which means more than £12,000 has been added to average property values so far this year. CBREHI now expects total house price growth of around 9% for 2006.

Jennet Siebrits, head of research for the group, said, “Continuing strong market activity and limited availability has led to further price increases in the third quarter. The recovery of the London market now seems well established, with above average price growth in each of the last three quarters.”

“However, Northern Ireland and Scotland yet again outperformed the other regions, both recording double digit house price growth.”

Property transactions in August reached the highest levels since November 1988. In total there were 486,000 transactions in the three months to August, a 16% increase in activity over the year.

With mortgage approvals remaining stable at around 120,000 for the last four months, CBREHI predicts strong activity to continue for the foreseeable future. In addition, the RICS report that the stock of unsold property in September was at its lowest for 2 years, whilst house price growth was the fastest since October 2002.

Siebrits added, “Changes in tenancy regulations and the introduction of buy-to-let mortgages have reversed the long-term decline in the private rental sector. Buy-to-let investors have been particularly active and now account for around a third of the market, with up to 8% of properties in new-build city centre developments.”

2006-11-07T18:42:00.000+01:00

Homeowners trade down to enjoy life

As downsizing becomes ever more popular it seems retirees are no longer downsizing purely for practical reasons, but rather to use the equity they have built up in their property over the years to fund a new phase of life, including once-in-a-lifetime holidays and college courses.
The main drivers for downsizing from a large family home to a smaller, more manageable property such as an apartment or bungalow, have traditionally been the prospect of minimal home maintenance, having fewer rooms to clean and a smaller garden to care for.

However, a report from Linden Homes shows the perception of retirement has changed dramatically over recent years, and more and more retirees are now focusing on enjoying life once they have finished work by travelling, going back to college or even buying their dream car.

It is estimated that one third of the property market is trading down at any one time, releasing on average £112,000 per transaction.

For retired couple Sally and Donald Lawson, the move from their four-bedroom Dorking home to a two-bedroom apartment at Linden’s nearby Deepdene Place, opened a number of doors. They not only made several investments, but the capital also allowed them to buy a new car and enabled Sally to take up a course in computing.

Sally said: “The extra money we freed up by downsizing from a family home has allowed us to really start enjoying life. I have always wanted to return to college and take computer classes, and now I have the funds to do it.”

“I also don’t have to worry about maintaining a family house, with its time-consuming garden and endless chores. Instead we have a low-maintenance home and can spend time doing the things we enjoy.”

Philip Davies, chief executive of Linden Homes commented: “People retiring now are of a property-rich generation, and many of them are using their equity wisely both to buy a more appropriate home and fund an increasingly active lifestyle.”

2006-11-06T16:53:00.000+01:00

The home improvement divide

Consumers and estate agents are breeds apart in their views on the type of home improvements that will add value to a property. Whether considering extra space, a hot tub, removing period features or paving over the garden, they find it almost impossible to agree.

To add value, estate agents are more likely to favour improvements that create space or improve decoration, whereas consumers are more likely to support ‘leisure add-ons’ such as garden makeovers or hot tubs, showed research from Alliance & Leicester.

Seven out of ten estate agents say by far the best improvement to increase the value of your home is to add extra living space downstairs, yet only 50% of UK adults see the value of this work. According to agents, the next best improvements are a new kitchen (65%), extra bedroom/study (57%), and garage (42%), but far fewer consumers agree (at 58%, 42%, 38% respectively).

Consumers are also less likely to agree that internal, external decoration or replacing period features will add value.

More consumers than estate agents believe their property value will soar if they add a conservatory, have a garden makeover or even install a hot tub or swimming pool.

Around 5% of adults believe a hot tub or a swimming pool would add value to their property, particularly in younger age groups (19% of under-25s), while less than 1% of estate agents agree.

Detracting value

According to estate agents, the ‘improvements’ that are a sure-fire way to send a property’s value falling are poorly fitted cupboards and kitchens (65%), ‘loud’ external decoration (65%), polystyrene ceiling tiles (63%), and the removal of period features. Yet far fewer consumers agree (at 58%, 51%, 59% respectively). While 55% of agents say removing classic features will harm value, only 34% of consumers agree.

Most UK adults are more concerned about the damage that poorly fitted tiling, cheap laminate flooring, paved over gardens and woodchip walls might do to value, whereas many estate agents feel these to be the least important.

Perhaps influenced by the plethora of home makeover shows, consumers are least concerned by loud internal decoration – only 29% say it would detract value, compared to 36% of estate agents. (See Table for full details).

Men and women also disagree

Men value the quality of workmanship, while women worry about décor. Among the worst features for men are homemade cupboards (60% vs. 56% for women), bad tiling (55% vs. 49% for women) and cheap, badly fitted laminate floors (50% vs. 40% for women). Women are more concerned about the effects on value of patterned carpets (39% women, 27% men), removed period features (37% women, 28% men) and non-neutral external decoration (53% women, 46% men).

Richard Al-Dabbagh, senior marketing manager for loans at Alliance & Leicester, commented: “Whatever we may think of them, estate agents are the experts when it comes to what helps or harms a sale. They conduct valuations of properties on a daily basis so they know that, while you may be proud of your carpentry attempts in the kitchen, they will deter most potential buyers.”

“A personal loan can be one of the most cost effective ways to enable ‘home improvements’ but when considering borrowing money for home improvements it is vital that your planned alterations really do count as improvements!”

2006-11-03T15:04:00.000+01:00

Irish housing crash forecast defied again

The Bank of Ireland's Irish Property Review has revealed that the Irish housing market continues to defy commentators predictions of a sharp correction and 2006 looks set to become another record year for completions, house prices and mortgage take up.

However, the Review predicts that 2007 is likely to see sluggish price inflation due to further deterioration of affordability on the back of higher interest rates.

According to the Review the consensus estimate for house completions in 2006 (85,000 - 90,000) is now too low. Completions in the first half of the year amounted to a 24% advance on the same period of 2005 and the conservative estimate for the year as a whole now looks set to reach 95,000, but could go as high as 100,000. The latter figure would represent around 24 completions per 1000 people, an astonishing figure given that the EU norm is around 5 per head of population. It seems likely that total completions will decline somewhat in 2007.

Dr. Dan McLaughlin, group chief economist for the Bank of Ireland Group said: "Despite the growth in completions, it is true that the Irish housing 'stock per head' is still below the EU average, implying a catch-up period might be expected, but few if any envisaged annual house completions of this magnitude, even given the recent surge in immigration and related growth in total population.”

“Clearly, there are no appreciable constraints on Irish housing supply, and although many may quibble with the planning process, and whether the distribution of new housing is optimal from a social perspective, the aggregate supply response hardly suggests market failure."

The implication is that demand too has been extraordinarily robust, underpinned by another year of strong employment growth (88,000 new jobs created in the year to May) and a surge in the population, in turn augmented by unprecedented levels of immigration (an inflow of 90,000 in the 12 months to April).

The Review highlights that house price inflation nationally has been in excess of 10% a year since the summer of 2002. The latest reading for Q2 2006 shows an annual rise of 14.1% in the price of existing homes across the country and puts the average price of an existing home in Ireland at Eur379,000.

In Dublin, house price inflation has been stronger at over 17%, and the average price of an existing home in the capital is Eur516,000. New houses tend to be cheaper (nationwide Eur308,000 and Dublin Eur397,000) but again show double digit annual inflation of 11.9% nationally and 14.6% in the capital.

By the close of 2006 the Review predicts a 14% increase but forecasts a slower pace of growth in 2007 and a 3% rise in house prices.

Mr. Joe Larkin, Managing Director, Bank of Ireland Mortgages said: "Mortgage lending growth is set to remain strong in 2007 however, given forecast house completions of 85,000. As a result, we expect gross new mortgage lending to rise to Eur27.8bn, up from Eur26.5bn this year.”

“This implies a mild deceleration in the pace of mortgage growth, reflecting a marginal fall in the number of new mortgages, to just under 120,000, and a slower pace of growth in the average mortgage size. This level of growth in mortgage lending would suggest a 22% rise in the stock of mortgage debt, down from over 26% in 2006."

The Review notes that rents have also picked up this year, rising by 6% in the twelve months to September, which also points to very strong housing demand. Dr. McLaughlin commented: "The latter no doubt reflects both the pace of employment growth (some 88,000 new jobs were created in the twelve months to May) and the sheer weight of population growth - inward migration alone amounted to 90,000 in the year to April 2006. A third factor relates to competition in the mortgage market, which has intensified significantly since the summer of 2005 according to the Central Bank's quarterly survey of credit conditions."

In its analysis of the commercial property market, the Irish Property Review notes that a 28% return is now expected this year given the strength of the market to date. However, this may represent a cyclical peak in the light of low yields now prevalent in the marketplace, so lower returns are expected in 2007, with a forecast of 12%.

2006-11-02T19:36:00.000+01:00

House prices could be lower in 2010 than now

Leading accountancy firm PriceWaterhouseCoopers has said faith in rising house prices might well be misplaced and property was not as safe an investment as a savings account.

The risk that house prices will be lower by 2010 than now is likely to be as high as one chance in three, and the odds would jump to two-in-three if the housing market mirrored past form since the seventies, the firm said in its UK Economic Outlook today.

PriceWaterhouseCoopers based its prediction on the ‘Monte Carlo Simulation’ which marries future prediction of house price growth with analysis of how the market has behaved in the past.

The model examines three variants of the house price model (‘Historic Parameters’, ‘Optimistic Scenario’ and ‘Main Scenario’) involving different assumptions on the degree of structural change in the housing market over the past decade or so, to generate ‘fan charts’ similar to those used by the Bank of England to project inflation.

On the main scenario, the odds of prices being lower by 2010 than now fall to one-in-three, while on the most optimistic variant of this view this risk drops to just 7%.

On the optimistic scenario, that prices last year were still “fair”, PWC estimates odds of almost one-in-four that they will rise by another 10 to 20% by 2010, with a two-fifths chance that they will jump by 20% or more.

PWC’s study also examines the odds for prices until 2020. Because prices tend in the long-term to rise as earnings grow, it sees a virtually zero chance of house prices being lower by then than they are now on its central case.

The firm warned that people who relied wholly on house price growth to provide a financial cushion in retirement needed to consider the risk of price falls.

John Raven, senior economist at PricewaterhouseCoopers LLP, commented, “Despite the recent relative robustness of the UK housing market, potential home-buyers and investors should not underestimate its volatility in the medium term.”

2006-11-01T18:12:00.000+01:00

Liverpool regeneration project stopped again

No sooner than the bulldozers were ready to bull their way into Liverpool’s Edge Lane this week, then another shot from angry resident Elizabeth Pascoe put them into doze-mode again.

Part of Liverpool’s troubled regeneration project was to finally get going on Monday (see our story Liverpool’s Edge Lane project starts) but a last-minute injunction obtained by angry resident Elizabeth Pascoe was served on Liverpool council leader Warren Bradley and others to stop the bulldozers moving in as planned.

The plan to demolish hundreds of homes as part of the Edge Lane road-widening scheme has been the subject of a long running battle spearheaded by Elizabeth Pascoe and her public interest lawyers. All those due to be ripped down have already been bought up and are not the subject of the court battle between Liverpool Land Development Company and residents but Pascoe’s lawyers argued that if the demolition work planned for this week went ahead it could jeopardise the judge’s final decision on compulsory purchase of the remaining homes.

Ian Hassall, development director of LLDC said: "We are currently consulting with our lawyers and considering the implications of this injunction and the options open to us and our partners."

2006-10-31T17:39:00.000+01:00

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.

2006-10-30T18:50:00.000+01:00

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.