News Blog

Moving City estate agents, based in London, E1, between Brick Lane, Spitalfields Market, and Shoreditch launches their newly formed residential Sales department which will cover areas such as Docklands, Canary Wharf, Bow, Hackney, Knightsbridge, London Bridge, Wapping and Islington.
www.movingcity.co.uk
June 28 2011
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March 1 20100

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Rental market

One effect of the shortage of mortgage funds has been to force more people to rent homes instead of buying them.

It would appear that the rental market is groaning under the strain of too little stock and too many people looking to rent, and the situation is unlikely to improve any time soon.

"People who would normally be looking to buy their first property after renting for a few years are renting for longer as a result."

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February 14 2011
Tight supply of property pushes central London prices higher

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According to the Knight Frank Prime Central London Index, January 2011 results, the tight supply of stock and resilient demand pushed prices higher in central London by 1.1% in January 2011. Recent price performance has contributed to annual price growth of 10.3% in the 12 months to January.

London residential property price rises have been led by the Knightsbridge and Kensington markets, where prices have improved by nearly 6% in three months. Prices are now 26.9% higher than March 2009 and just 3.4% lower than their all time peak reached in March 2008.

The head of residential research at Knight Frank, comments: "London has bucked the wider UK trend in recent months, with strong price growth and resilient demand for property. Whereas prices in the wider UK market fell by over 1% in the year to January, central London saw continued double digit growth.

"Demand for property has been strong, applicant volumes were 13% higher in the three months to January compared to the same period a year earlier. The real drivers of this demand have been overseas buyers, especially Europeans, and also City based buyers, who have been more numerous than expected given the uncertain discussions over bonus levels. A marker of the strength of the London market is shown by the fact that viewing volumes are up by 30% year-on-year in January.

"On the supply side, the ongoing issue of tight supply continues, while stock volumes are running at 3% above the level seen a year ago, they are still down by over 20% compared to January 2009. Current rates of sale compared to stock volumes are still running at approximately 10%, far above the long run average of 7% to 8%. This again confirms the position of limited stock in the market for buyers to choose from."

A partner of Knight Frank, Knightsbridge, comments: "Looking ahead we see the shortage of supply continuing for the short term, sellers are still undecided on whether now is the time to sell. The increase in Stamp Duty will add to the cost of moving and past experience shows that as Stamp duty rises so supply falls. International buyers will still play an important part in the prime central London market. London is still seen by many as the No.1 capital in the world in which to live and work. The de-stabilisation of some Middle Eastern countries and the worries that it may spread further may lead to enquiries for London homes as a safe haven.



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January 14 2011
House For Sale In Earlsfield, SW18

A lovely four bedroom semi detached house for sale in the Magdalen Conservation Area, close to Beatrix Potter School and 8 mins walk from Earlsfield mainline station ( Waterloo 12 mins). Approx. 1,417 Sq. Ft. of light and airy accommodation.

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SEMI DETACHED HOUSE - 1930's BUILT - FOUR BEDROOMS - FAMILY BATHROOM - EN SUITE SHOWER ROOM - THREE RECEPTION ROOMS - FULLY FITTED KITCHEN - CLOAK ROOM - HALL - 50' S.E. FACING REAR GARDEN - SHED - GREEN HOUSE - PEA SHINGLED FRONT GARDEN - SOLID OAK FLOORING - EXTENDED EIGHT YEARS AGO - GAS CH - ALARM SYSTEM - DOUBLE GLAZED - SIDE ACCESS - GOOD TRANSPORT LINKS - JUST 8 MINS WALK TO EARLSFIELD STATION,LOCAL BUSES FOR CITY ACCESS AND SAINSBURY'S LOCAL SUPERMARKET - PERFECT FOR BEATRIX POTTER SCHOOL AND BURNTWOOD SCHOOL - PLEASANT ASPECT - 1,417 Sq Ft - PERMIT PARKING OUTSIDE THE HOUSE - CONSERVATION AREA - WANDSWORTH COUNCIL TAX £900 per year

Price: £710,000 Freehold

Phone for more details: 02033393119
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January 4 2011

A BRIGHTER OUTLOOK: It isn’t an entirely gloomy forecast — we can expect a slow but stable property market in 2011.

Next year is set to be another tough one for the UK housing market, but there is a glimmer of hope that prices may at least hold their own until ­recovery in 2012.

There are four big influences to look out for in the next 12 months, say experts.
First, prices are predicted to fall slightly early in the new year before recovering from the summer onwards if the wider economy also improves.

The Royal Institution of Chartered Surveyors forecasts price falls of up to 2 per cent early in 2011, especially in areas such as the north of England with the ­largest number of public sector jobs vulnerable to cutbacks.


Read more: http://www.dailymail.co.uk/property/article-1342974/Property-market-slow-stable-2011-glimmer-hope-2012.html#ixzz1A3xuZwF1

By Graham Norwood
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Thursday December 22 2010

Homeowners must prepare for a series of interest rate rises to about 5%, a Bank of England official has warned.

Paul Fisher, a member of the Bank's rate-setting Monetary Policy Committee, said officials would like the current 0.5% base rate to rise to a "normalised" level 10 times as big.

But, in an interview with The Daily Telegraph, he said "the speed at which that happens is another thing entirely".

Mr Fisher told the paper: "We hope people are aware that interest rates at some point will go up again and that they will head back to a normalised position.

"There's no reason why the pace should be more precipitative. We would only tighten quickly if the strength of the economy did demand it.

"So obviously we would not be putting up rates so quickly as to cause that sort of negative reaction. That's something we can try to anticipate and build in.

"So we would put rates up, see what the effect is and then judge how quickly to go."

Asked if the goal was to get interest rates to about 5%, he added: "Yes, but the reaction of people to those changes in rates is part of the process of information that we have to build into our forecasts and policy decision.

"It's not something where we would put rates up and ignore the reaction to it."

Mr Fisher said he did not think a change of either 0.25% or 0.5% was going to trigger a recession.

"But what we need to do is to trigger the mindset in people that that's where rates will eventually go back to," he added.

Minutes of the Bank's December rates meeting revealed members of the MPC (050540.KQ - news) were split three ways again this month when they left the 0.5% rate unchanged.

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Dec 22 2010

Home owners threatened by rising interest rates

In its Financial Stability Report, the Bank says that two thirds of borrowers are now on floating interest rate deals and the proportion is rising.

If rates go up next year, as some analysts suggest they will to combat rising levels of inflation, these home owners will see an increase in their monthly mortgage payments.

More could find themselves unable to afford their repayments, the Bank’s report warns.

Often, people automatically end up on their lender’s standard variable rate once the term of their initial fixed-rate deal has expired and they are unable to find an alternative affordable loan elsewhere.

There are also some home owners who have made the decision to stay on their lender’s standard variable rate as it is cheaper than remortgaging or because they are unable to remortgage due to tough lending criteria imposed by banks.

Many risk becoming so-called “mortgage prisoners” – trapped in their homes, unable to move, because of the cost of borrowing.

At the height of the credit crisis in 2007, there were 11.4 million outstanding mortgages, according to the Council of Mortgage Lenders. Less than half of these – approximately five million – were on a floating rate, such as a tracker mortgage or a lender’s SVR.

Almost seven million borrowers – or 57 per cent – had a fixed rate deal. But many of these initial deals are coming to an end.

In its report today, the Bank warns that around two thirds of outstanding mortgages – equivalent to 7.2 million – are now variable rate deals.

“Currently, around two thirds of outstanding mortgages in the United Kingdom have floating interest rates, somewhat above the average over the past five years,” the Bank says. “That proportion is rising as mortgagors move on to standard variable rate products as existing fixed-rate deals expire. This exposes more households to the risk of increases in interest rates.”

The Bank goes on to warn that a rise in rates could result in more home owners being unable to afford to repay their loans.

It says: “Given current levels of debt, UK banks might face higher defaults if interest rates were to rise rapidly from current levels or if income and employment were to fall.”

The Bank of England is under pressure to increase the Bank Rate from its historically low level of just 0.5 per cent amid a jump in inflation.

The Consumer Prices Index, the Government’s preferred measure of inflation, rose to 3.3 per cent in November, up from 1.9 per cent a year earlier.

Today’s report warns that if the Bank Rate rose to 5 per cent, and banks maintained their current profit margins, households would spend more of their disposable income on mortgage interest costs than at any point in the last 20 years.

Families would need to reduce their debt by 15 per cent to reduce their interest payments to long-term average levels.

A 1 per cent rise in mortgage rates would see the monthly repayments on a typical £150,000 mortgage increase from £909 to £989.

Andrew Hagger, of personal finance website Moneynet, said: “A small increase in mortgage rates on top of all the other inflationary pressures that households are facing could be enough to tip some people over the edge.”

Economists have warned that inflation will remain high next year, leading to a rise in interest rates.

Vicky Redwood, a senior economist Capital Economics, said: “The combination of tax rises, high inflation and public sector job losses make for a pretty nasty backdrop at the start of next year.”

Howard Archer, an economist at Global Insight, said: “The Bank of England could raise interest rates earlier in 2011 than currently expected. However, we suspect that most Monetary Policy Committee (MPC) members will be willing to hold off from raising interest rates in the near term at least while they wait to see how well the economy holds up as major fiscal tightening increasingly bites in 2011 starting with January’s VAT hike.

“The MPC are also likely to be soothed by current ongoing evidence of wage moderation. We continue to lean towards the view that the Bank of England will not raise interest rates before the fourth quarter of 2011.”

Charities warned earlier this week that home owners are falling behind with their mortgage payments at an alarming rate and that more people would lose their homes next year.

By Myra Butterworth
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Monday December 20 2010

UK govt figures show property prices falling

Residential property prices in the UK fell 0.1% in October and have now increased 5.5% over the year, according to the latest house price index from the department of Communities and Local Government.

The average mix-adjusted UK house price was £209,466, not seasonally adjusted, and average house prices were 0.2% lower over the quarter to October, compared to a quarterly increase of 0.5% in July, seasonally adjusted.

The data, based on mortgage completions during the month of October 2010, also shows a widely variable picture on a regional basis. Average prices increased during the year in Wales by 9.1% and in England by 5.9% but were lower in Northern Ireland, down 8.9% and down 0.4% in Scotland.

Prices paid by first time buyers were 3.4% higher on average than a year earlier whilst prices paid by former owner-occupiers increased by 6.3%. The report also shows that prices paid for new properties were 4.4% higher on average than a year earlier whilst prices for pre-owned dwellings increased by 5.6%.

Meanwhile there are no signs that more mortgages are available. The latest figures from the Financial Services Authority (FSA) in its Mortgage Lending Data for the United Kingdom report for the third quarter of the year shows that lending for house purchases accounted for 64% of new advances, the highest percentage in the series and 61% of new commitments.

The total value of outstanding loans though is £1,220 billion, an increase of less than 1% on last quarter. New advances in the quarter totalled £41 billion, 12% higher than in the second quarter but much the same as the amount advanced in the third quarter of 2009.

New commitments totalled £38 billion, 6% down on the previous quarter but again in line with the third quarter of 2009.

There is concern that lack of lending is having a major impact on the UK’s real estate market. According to Charlie Ellingworth, director of Property Vision, the buying agent and subsidiary of HSBC Private Bank the days of automatically selling your house for more than you bought it for are over.

‘November produced some really quite shocking statistics on the mortgage front. Net mortgage lending for September was £112 million. The figure in September 2007 was £10 billion. Even allowing for irrational exuberance and lamentable lending standards in 2007, that is a fall that brings to mind cars and cliffs,’ he said.

‘Gone are the days of 100% loan to value mortgages. Old-fashioned concepts such as deposits are now in vogue again and valuers, even in our market, are subtracting another 10% as an additional cushion, all of which brings to mind stable doors and horses,’ he added.

He also points out that according to the Home Builders’ Federation, the average age of a Briton buying his or her own home without assistance is now 37.

Article by Ray Clancy

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Wednesday 8th December 2010

A new FTSE-style property website for investors has launched. It treats properties as an investment, and rates them accordingly.

Rankdesk will publish a weekly Top 100 list of high performance investment properties in central London.

It will take properties and their descriptions from estate agency partners who, it claims, are set to benefit by having these placed before a national and international audience.

The properties will be ranked on methodology including rent, proximity to tube stations, local tenancy demand, room sizes and overall yields.

The site is now in testing mode, with launch partners Douglas & Gordon and Marsh & Parsons – both award-winning estate agents in London.

Currently, the site is appealing for more estate agents to back it. Their property listings will be free for at least one year, and there is also a free trial for investor subscribers. It is anticipated that agents will eventually be charged a nominal fee of, perhaps, £30 a month.

Rankdesk founder and LSE lecturer Savvas Verdis, who also has a PhD in architecture, says the business was established following his observation that unlike stocks or bonds, or even commercial property, residential property “lacks the necessary in depth investment data required by the global investor”.

Verdis said: “For the first time, investors can assess properties using a comprehensive analytical platform which will help them take more informed investment decisions. This platform gives estate agents exposure to a captive audience. There is flexibility within our model, so agents can preview our rankings a week in advance and remove properties if they wish to do so.”

Agents who meet Rankdesk’s minimum property data requirements can list their properties for free in 2011, while premium services are available for those agents who distribute Rankdesk’s detailed five-page reports to their customers.

As soon as the estate agents are signed up, Rankdesk will automatically find the necessary data from the agent’s own website. Their property stock will be analysed on a weekly basis and appear on the Top 100 list, which will be published every Wednesday morning.

Ed Mead, of Douglas & Gordon, said: “Rankdesk will be an extremely useful tool for property investors, particularly those based overseas, and it will only improve over time. It offers analysis based on comprehensive detail and clever methodology. There’s simply nothing else like it, so we are delighted to be involved.”

Peter Rollings, managing director of Marsh & Parsons, said: “Rankdesk provides comprehensive insight to buyers looking to invest in London property. This provides us exposure to both domestic and international investors alike. With inquiries from international investors to our own international desk increasing, we expect our overseas purchasers, who require pertinent information in order to make an informed decision, to make full use of rankdesk.”

www.rankdesk.com

Thanks to Estateagenttoday
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December 2 2010

First-time buyers needs a salary of almost £100,000 to buy the “average” price home in London, according to an annual survey by the National Housing Federation.

Even buying a lower value home (a property in the bottom 25% of prices) requires an average salary of over £50,000 - almost double the average income in the capital - according to the Home Truths London 2010 survey.

Belinda Porich, head of the Federation's London region, said: "The Home Truths report shows that buying a house is not a realistic prospect for the vast majority of Londoners. This is especially bad news for London's ordinary hardworking families. Many of them are already fearful of having to leave their homes next year due to the Government's planned housing benefit caps and cuts."

Some key facts from Home Truths London 2010:

* The average house price in the capital is £363,043, 13.5 times the average London income of £26,910 (see borough by borough table at end)
* Buying an average price house requires an annual income of £93,354 to get a 90% mortgage at 3.5 x salary
* Only eight London boroughs have an average house price of less than a quarter of a million pounds. They are Barking and Dagenham, Bexley, Croydon, Havering, Lewisham, Newham, Sutton and Waltham Forest. Only Barking and Dagenham has an average price of under £200,000
* A 25% deposit, required for better mortgage deals, would mean having to save up £90,000 in London - more than buying a home outright in parts of England
* The average cost of a home in Kensington and Chelsea is now £1.04m, the first borough in the country where the average has broken £1m
* House prices in London have risen faster than the national average over the past one, five and 10 year periods.

Porich said: "More than 800,000 Londoners are on social housing waiting lists and almost 11% of the capital's entire population live in overcrowded conditions from which they can see no escape.

"House prices are far out of the reach of ordinary hardworking Londoners, triggering even greater demand for good quality social housing - especially as the average housing association rent in London is just a third of the equivalent property in the private sector.

"This means even longer waiting lists at a time when the Government intends to slash housing benefits and impose unrealistic caps. We need to prevent London becoming a polarised city by ensuring that all boroughs allow housing associations to build new social rented family housing."

The Federation has warned that the Government's decision to slash the housing budget by 63%, and pay for new low cost homes through massive rent increases, will mean that no real new social homes will be delivered during the next spending period, beyond those already in the pipeline, and lead to thousands more tenants being trapped on benefits.

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December 2 2010
BATTERSEA POWER STATION COULD HAPPEN

It would appear that Wandsworth Council have now approved plans for re-development of this great London land mark building.

The proposal includes a pledge of £200m towards a two station extension of the Northern Line from Kennington.
A new tube station is to be located at the site, with another one at Wandsworth Road, to serve the Eastern end of Nine Elms and the surrounding area.

The Northen line extension is key to the council's plans to regenerate Nine Elms and will assist kick start the major investment projects throughout the locality.
The whole scheme could creat more than 3,400 new homes and 15,000 new job opportunities across the 40 acre site.
A walk only high street and " town square" along with new shops, restaurants, bars, cafes and offices are part of the plan.
A new section of the Thames Path will be created, along with a 5 acre riverside park.

Here's hoping that the project will begin soon.



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November 19th 2010

NAEA LAMBASTED OVER LICENSING SCHEME

The National Association of Estate Agents has come under fire for launching a licensing scheme only open to members.

As The Negotiator revealed on Wednesday, Peter Bolton King, chief executive of the NAEA, launched the scheme at the House of Commons and says he is expects it to mirror that launched by the Association of Residential Lettings Agents last year.

In addition to membership of the NAEA, which costs £175 per agent per annum, the license requires the undertaking of 12 hours' Continuing Professional Development per annum and a commitment to keeping up-to-date with industry developments in additional to adhering to the NAEA’s rules of conduct. Licensees are guaranteed Professional Indemnity Insurance as part of the deal.

But Russell Quick, founder of virtual agency eMoov, says: “The cost of joining for the two thirds of agents not already enrolled is £555, which includes the technical qualification course materials, exam and membership and joining fee. This is pretty prohibitive under current circumstances.
“But not only is the scheme prohibitive to those that do not wish to join the NAEA for whatever reason, it is also prohibitive as to cost. One wonders if this initiative by Peter Bolton King is therefore merely a sales campaign to increase NAEA income?”

Industry pundit Henry Pryor agrees: “In a move worthy of General Melchett, the Stephen Fry parody of Earl Haig and the Great War generals, the National Association of Estate Agents has announced that henceforth it’s membership cards can be turned over and will double as a ‘license’, with the result that two thirds of practicing estate agents are apparently not qualified to carry out their business. I am one.

“Sadly the Captain Darling of the piece, Peter Bolton King the NAEA Chief Executive has allowed his masters to mistake a worthy aim to which many in the industry aspire with a cheap publicity stunt to bolster a falling membership.

“The public will be more confused than ever since some will no doubt fall for this shabby rouse and may think that they can not deal with someone who happens not to be a member of a club.”

He adds: “My membership of the AA doesn’t replace my driving license - this is a cheap stunt that has backfired.”

Bolton King says: "Firstly, this is not a Peter Bolton King anything. Licensing has been discussed for many years at every level within the association. It's something that's been worked on for years that has now been picked up.

"It's taken so long because the feeling was that we were getting somewhere with the previous government with licensing, which clearly hasn't happened."

He adds: "Obviously I have an obligation as chief executive of a membership body to grow our membership, but this is not the reason we have done this. If a by-product of it is that membership grows, then fantastic.

"It's about trying to get across to the public that they know the person with whom they're dealing is tied to our code of conduct. I am not saying that agents not with the NAEA aren't good."

Bolton King insists that while NAEA membership fees may rise modestly next year, this will not be in connection with the licensing scheme. He claims that the NAEA currently has around 7,500 members, which he estimates is 40% of the estate agency market.

The NAEA’s full-year accounts for the 12 months to December 31 2009 revealed a £1.1m loss for the year - more than double the £462,925 loss reported for 2008. However, £3.1m of retained profit was brought forward to move the body back into the black, resulting in the accounts showing a £1.9m profit.

The loss came as NFoPP was in the throes of developing its property portal, Property Live.

Meanwhile, plans for an estate agency register have been put on hold due to market conditions and the recent collapse of the Property Standards Board. As The Negotiator Online exclusively revealed last week, the decision was reached at an ombudsman board meeting last month, with the majority of members in attendance agreeing that the fragility of the market made the launch untenable for the foreseeable future.

Thanks to The Negotiator
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Nov 5 2010
Over 61,000 new tenants enter the rental market

According to Countrywide, tenant demand reached new heights in quarter three (Q3) 2010 with over 61,000 new tenants registering for rental accommodation - a 19% increase compared to the previous quarter -.

These latest figures their network of 1,300 letting and estate agency branches show the number of tenants looking for rental accommodation has jumped by 44% during 2010, with July seeing over 20,000 applications - the highest number for a single month since records began.

A combination of record demand and supply issues have caused the total number of properties available to rent in the UK to fall by 6.9% in Q3 2010 compared to Q2 2010 - a 27% fall on the total number of properties available to rent in Q3 2009.

There is now an average of 5.8 tenants vying for each property across the UK - up from 5.5 in Q2 2010. Whilst apartments made up the greatest percent of stock on agents books, two bedroom houses continue to be most popular with an average of 10.2 tenants vying for each property. In contrast to Q2 2010 when houses were the most sought after property type, demand for one and two bedroom apartments have jumped sharply, most notably in London and the North West.

The latest findings also reveal that properties are being rented out within 13 days of entering the market - a reduction of one day compared to Q2 2010 and 7 days quicker than at the start of the year, with many properties let within hours of coming onto the market.

Couples under 35 made up the highest percentage of new tenant applications in Q3 2010. However the demographic of tenants remained broadly similar to Q2 2010 levels despite the seasonal influx of student tenants experienced during the summer months.

John Hards, Co-Managing Director of Countrywide Residential Lettings said: "Record levels of demand are seeing the number of available properties reaching critical levels with many properties having lets agreed before the previous tenants' contract has ended.

"Our findings prove that new tenant applications have increased dramatically and existing tenants are choosing to rent for considerably longer periods of time, which is impacting on the amount of properties available to rent. With demand at an all time high, now is exactly the right time for private home owners to consider renting their property if they are unable to sell but still want to move.

"The private rental sector is the only viable option for a growing number of people and this issue will only intensify, especially in the wake of the government's cuts to the social housing budget. The government must do more to incentivise cash investors and help private landlords in need of buy-to-let mortgage funding as rental supply is a growing national concern."

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October 24 2010

GOOD SIGNS FOR LONDON GROWTH

According to Frogmore Property Company, the London property market will be very strong in the next 12 months, with interest for dwellings in the capital coming from both UK-based and international buyers.

The signs are that there is still a growing number of people who want to invest in accommodation in the UK.

London has always been thought of as a safe haven and this appears still to be the case.

There are a lot of different markets and the top end residential sector now costs between £1,200 to £1,500 per foot and rising.

According to a recent report from Knight Frank, rents for luxury dwellings in the capital increased by 16 per cent for the fifteenth month in a row since June 2009.

However, rents still appear to be around seven per cent lower than the market peak experienced in 2008.
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October 21 2010

Major South East London development goes into Administration

The Royal Bank of Scotland (RBS) has placed a 52-storey skyscraper project on Blackfriars Road into administration.

The major mixed-use scheme, called 'One Blackfriars Road,' was tipped to be worth as much as £1 billion on completion. It had secured planning permission for 64 luxury apartments as well as a 261-bedroom Jumeirah hotel.

The £500 million commercial project was backed by The Beetham Organisation, a Liverpool-based developer and Mirax, the property company founded by Russian property tycoon Sergei Polonsky.

RBS has now appointed administrators to the project 'following the breakdown of the relationship between RBS and Beetham’s Russian partners,' says The Beetham Organisation.

Beetham added that it hoped to be able to lever the project out of administration with the help of new investors, but did acknowledge that the site could be sold. The company said that they would be expecting bids of around £150 million from potential buyers if the site was to come onto the market.

BDO Stoy Hayward has been appointed administrator. Knight Frank has been instructed to act on behalf of Beetham and Mirax, while CB Richard Ellis is acting for RBS, who supplied the original loan, although it has since been shared with other banks.

Thanks to Rachel Constantine

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October 21 2010

Isn't it strange...... October always seems to shake all manner of conflicting reports out of the trees, about what "the market's" doing right now. Read ten different articles written by "property pundits" and "experts" over a day or so and the odds are that they will conflict & contradict. The Halifax and Rightmove rarely agree about anything and then the Telegraph pitches in with its views, which just confuddles the picture even more.

Perhaps it's the change of season that causes the experts to mis-read things.......... after a reasonably good summer break, which invariably breeds unrest, people beat a trail to their local agent, with high hopes and expectations about how much they can sell their houses for. Invariably the property goes on the market for more than the ones that have been sitting there for months, in many cases because the agent is short of stock and will say anything to get the instruction and then everyone becomes depressed when it hasn't sold in the few weeks before Christmas.

The reality is that it's actually a buyers market at the moment and sellers, plus their agents really should be more realistic about what their property is really worth. It's not that difficult.......... the internet is the best "shop window" for accurate comparables and indicators as to real values. The buyers out there are hesitant, for good reason........ while the government reveals its austerity measures, people are holding back, understandably, while they calculate the effects on their budgets.

Interesting times ahead...
http://londonspropertyguide.wordpress.com/
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October 14 2010

Third of parents give children £10,000 to get on property ladder

The alarming figures show the growing dependency of children on their parents to realize the dream of owning their first home.

A total of 35 per cent of parents with children aged 18 to 24 said they have – or are willing to – give up to £10,000, while a further 18 per cent said they would raise the amount to as much as £15,000, according to the exclusive research by Halifax, Britain’s mortgage lender.


80pc of first-time buyers under 30 get parental help, says CML
First-time buyers return while borrowers spend less on their mortgage payments
Britain's property market on 'knife edge' as estate agents warn of house price falls
Home owners must reduce prices by 10pc to sell properties
Bank of England warns of tougher curbs on mortgage lending
Home owners reduce mortgages by largest amount in a year Stephen Noakes, Halifax’s commercial director for mortgages, said : “Amounting a deposit has never been easy, and it’s clear from industry figures and our recent research that first timers are continuing to turn to the Bank of Mum and Dad for help."

More than eight out of 10 first-time buyers only get onto the property ladder because they receive a cash handout from the Bank of Mum and Dad, according to figures from the Council of Mortgage Lenders.

It is the highest ever proportion and more than double the number reported during the same period in 2005, when 38 per cent received financial support.

It comes amid a decline in the number of first-time buyers – a key component in maintaining values.

The number of loans approved to first-time buyers dropped from 19,300 in July to 18,300 in August, significantly below the 35,000 loans approved at the beginning of the credit crisis three years earlier, the CML said.

The Halifax research also found that 79 per cent of parents said it is more difficult to buy a first home today than it was for them.

First-time buyers are struggling to purchase their first property as banks further tighten lending criteria.

They typically had a deposit of 21 per cent of the value of their home in August, compared to just 10 per cent three years ago.

Drew Wotherspoon, of mortgage brokers John Charcol, said: “The huge changes to mortgage lending criteria since the credit crunch has undoubtedly priced a large number of potential first time buyers out of the market.

“It is the need for large deposits that is the real issue; with buyers able to afford the monthly repayments but not the initial outlay actually required to get a foot on the ladder. As such, it comes as no surprise that parents are doing all they can to help their children achieve home ownership."

Thanks to Myra Butterworth, Personal Finance Correspondent. Telegraph


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October 11 2010

UK Property Prices Fall says Halifax

Property prices in the UK fell by an average of 3.6 per cent during September, the latest index for the country shows.

According to the Halifax report, year-on-year house values have increased by just 2.6 per cent, while analysts claim that this could be the start of a sustained period of declining prices.

Indeed, Martin Ellis, of Halifax, said that an increase in the number of properties for sale in recent months has exerted some downward pressure on house prices over the course of the past few months.

"At the same time, renewed uncertainty about the economy and jobs has caused consumer confidence to falter recently, dampening the demand for home purchase," he explained.

"Prospects for the housing market remain uncertain. Earnings growth is expected to be very modest over the next year, tax rises are on the way and more people are putting their homes on the market."

However, those looking at property in the UK will be pleased to hear that Mr Ellis is confident that interest rates will remain low.

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October 11 2010

RECORD RENTAL DEMANDS IN UK
The Association of Residential Lettings Agents (ARLA) has indicated that the number of tenants seeking rental properties has reached an eight year high.

UL letting agents Letting agents have reported a significant shortage of available rental properties as tenant demand far exceeds supply.
They say: “The market has returned in a way that no one could have predicted to levels of demand that have not been seen for a very long time.
“More than 70 per cent of our agents have stated that consumers coming to their offices are being forced to rent because of the pressure exerted on potential home buyers.
This is real evidence of a generation forced into renting and the Government must recognise the need for regulatory protection for them.
“As a minimum this must include consumer redress through an Ombudsman and Client Money Protection similar to an ABTA Bond. Our members offer these benefits to the consumer be it a landlord or tenant.”
The levels of demand are the highest since the ARLA survey began nearly a decade ago and are more than double those experienced at the peak of the property boom in 2007.
Demand is highest in the south east of England where 81 per cent of agents have stated that there are more tenants than properties compared to 67 per cent in the rest of the UK and 73 per cent in Central London.
“It has to be hoped that this unprecedented growth in the rental market will attract much needed investment into the private rental sector as it copes with the huge surge in demand from a generation who cannot afford to buy,” explained their spokesman.
“‘But we must ensure that Generation Rent’ receives as much help as possible from the Government to ensure the proper regulation of the sector.”
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Friday 8th October 2010


Confusion as house prices plummet by record amount – or rise slightly

In the biggest monthly house price drop on record, house prices fell 3.6% in September, the Halifax reported.

But in an extraordinary development, a report out this morning – the Acadametrics survey – claimed housing market activity picked up in September by 3.4% and prices rose by 0.2%.

The confusion underlines why the Government has called in its chief statistician to report on the huge divergence between the house price surveys.

The Acadametrics report was distributed by the PR firm Wriglesworth, which strongly defended its findings – despite the fact that it was also sending out press releases on behalf of other clients agreeing with the findings of the Halifax report.

One, Alan Cleary, of Precise Mortgages, was quoted as agreeing that transactions had gone down in September.

Asked to comment, Wriglesworth said there were ‘Chinese walls’ with different PR executives representing the views of different clients.

In defence of the Acadametrics report being so at odds with Halifax, the PR executive said that the Halifax does not include cash-only purchases, whereas Acadametrics does.

However, the Land Registry survey does include cash purchases, and has recently been putting average house prices at much the same level as both Halifax and Nationwide. Yesterday, Halifax reported that the average price of a home in the UK is now £162,096. The fall equates to an average drop in price of £6,000.

But this morning, Acadametrics reported the average price of a home is now £223,965 – an enormous difference of almost £62,000.

Nor does its finding that housing transactions rose in September appear to tally with what some estate agents are saying.

Yesterday, Hamptons International said that its transaction levels in September were down an astonishing 20% on August.

Adam Challis, head of research at the firm, said the Halifax statistics were “worrying figures for the housing market”.

He said: “Government austerity measures have been harmful to market sentiment. Across our network, we observed some weakening of the market over the summer which continued into September. Transaction levels were down 20% last month alone.”

He said there was a “pause” in market demand and he did not expect the market to adjust to the “new normal” until next spring.

According to Halifax, the fall means that house prices are now just 2.6% higher than this time a year ago, and are now 0.9% lower than three months ago.??

The Halifax’s economist, Martin Ellis, said: “Prospects for the housing market remain uncertain. Earnings growth is expected to be very modest over the next year, tax rises are on the way, and more people are putting their homes on the market. These will all be constraints on the market, dampening housing prices.??“On the positive side, we expect interest rates to remain very low for some time, which will underpin the improved affordability position for home owners.”??

The Halifax report also draws attention to mortgage approvals, which the Bank of England said fell to their lowest level for six months in August, to 47,372.??Ellis said that low transaction levels increased the “difficulty of getting a clear reading on the current state of the housing market”.

At the RICS, Simon Rubinsohn, chief economist, said: “The latest numbers from Halifax provide further evidence that house prices are easing. That said, the 3.6% drop in this index in September undoubtedly highlights the extent of the softer trend in prices.

“Significantly, the annual rate of change in prices in the Halifax index at 2.6% is not far away from the equivalent figures from Nationwide Building Society (3.1%).

“RICS expects prices to slip a little further over the coming months.”

Peter Rollings, managing director of Marsh & Parsons, said the Halifax survey was not “the story of London”.

He said London prices had reached a plateau, but had not gone down, held up by strong demand from cash buyers.

However, Cluttons and Knight Frank both disagreed with him. Knight Frank said central London house prices had fallen for three months running.

Cluttons said central London house prices had gone down slightly (by 0.2%) and would fall further because demand had weakened and the number of properties on the market had gone up.

Andrew Stanford, head of Cluttons’ residential professional division, said: “Whilst potential applicants continued to register during the third quarter, in reality demand was low.

“There has been little activity or interest in property above £3m or for secondary stock which, as a consequence, is likely to remain on agents’ books until a price adjustment is made.”

Thanks to: Estateagenttoday

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October 5 2010

Spotlight on Wandsworth
Property expert Anthea Masey follows newlyweds as they migrate across the river in search of spacious family homes

Riverside Quarter DevelopmentWandsworth is famous as the local authority with the lowest council tax in the country. It also has a reputation as a good spot for family homes, attracting newlyweds from north of the river who are prepared to head south in search of more space.

The borough covers a large area of south-west London including Battersea, Balham, Tooting, Earlsfield, Southfields and Putney. But oddly, Wandsworth the neighbourhood is found only in the relatively small area clustered around the nondescript town centre. What this little enclave lacks in size and glamour, however, it more than makes up for in its highly desirable residential streets which have attracted superchef Gordon Ramsay, Take That star Mark Owen, and TV and radio presenters Fiona Phillips and Johnny Vaughan.

Did you know?
First and foremost among these desirable streets is Spencer Park, an enclave of large, detached Victorian houses arranged around a private park and overlooking Wandsworth Common. These large houses rarely come on to the market. The highest price paid is £5?million.

Estate agent George Franks of Douglas & Gordon says that for such a small area, Wandsworth’s residents are extremely proud to say they live there. “The area abuts Battersea, Tooting, Balham, Earlsfield and Southfields, and on the boundaries people always claim they live in Wandsworth,” he says.


A thriving and busy Wandsworth High Street With such a wealth of fine homes, it is easy to forget that Wandsworth is still struggling with the legacy of its industrial past, especially along its river front. However, over the last 10 years some of this industrial clutter has been cleared and replaced with new flats.

Wandsworth’s greatest challenge is creating a town centre worthy of its position as one of London’s wealthiest boroughs. At the heart of any town centre improvement is the old Young’s Ram Brewery site. A recent mixed-use planning application from property company Minerva to open up the site, restore many of the listed brewery buildings and develop the frontage to the river Wandle, was rejected by the Secretary of State who opposed the erection of two large tower blocks of 39 and 29 storeys, which would have been among the highest in London. Minerva has promised a new application before the middle of next year.

What can you buy?
Properties: most of Wandsworth is Victorian and Edwardian, although there are now new flats along the river and in the town centre. The Magdalen Estate is an area of later Twenties houses west of Wandsworth Common which illustrates George Franks’s point — some call it Wandsworth while others call it Earlsfield. The Tonsleys is a popular neighbourhood of pretty cottages on the hilly slopes to the east of the town centre. Price per square foot in Wandsworth is between £500 and £600, rising to around £700 in the best roads, but this is still cheaper than Fulham on the other side of the river.

The lowdown
The area attracts: young professionals who buy riverside flats and conversions; families go for the houses.
Staying power: Wandsworth people are attached to their neighbourhood and like to put down roots.

Postcodes: the Wandsworth postcode is SW18, but to the south of Bellevue Road there are a few streets which like to think of themselves as Wandsworth even though technically they are in SW17, the Tooting postcode.


Best streets: Spencer Park; Lyford Road and the Toast Rack roads (Baskerville, Dorlcote, Henderson, Nicosia, and Patten), where there are large, red-brick semi-detached and terrace Edwardian houses, many overlooking Wandsworth Common, which usually sell for between £1.5?million and just under £3million.

Up-and-coming: the handful of streets around Vanderbilt Road in the triangle between Garratt Lane and Earlsfield Road. There are Victorian terrace houses (priced at between £500,000 and £750,000) and purpose-built flats with their own front doors (between £300,000 and £350,000).

What’s new: Battersea Reach is a large development of five riverside tower blocks, which when complete will have a total of 1,080 flats. It is east of Wandsworth Bridge and the developer is St George. There are only a handful of flats left in The Tower, starting at £789,950 for two bedrooms, rising to £2.3?million for a three-bedroom apartment on the ninth floor. Riverside Quarter, by Singapore-based developer Frasers Property (020 8877 2000), is another Thames-side development, east of Wandsworth Park and opposite the green spaces of the Hurlingham Club.


£789,950: for a two-bedroom riverside flat in St George’s new curved landmark tower at Battersea Reach (020 7978 4141)Schools: Allfarthing on St Ann’s Crescent is the kind of primary school parents move to be close to. It is judged “outstanding” by Ofsted. Other top-performing primary schools are: St Anne’s CofE on St Ann’s Hill and St Faiths CofE on Alma Road. Ashcroft Technical Academy on East Hill is the best local state comprehensive. It is co-ed and rated “outstanding” by Ofsted. Other state comprehensives with above average results are: Saint Cecilia’s CofE (mixed) in Sutherland Grove; Ernest Bevin (boys) in Beechcroft Road, and Burntwood (girls) in Burntwood Lane. The nearest private secondary schools are Emanuel (mixed) and Putney High (girls).

In your spare time
Shops and restaurants: Southside is a town centre shopping hub with a Waitrose, Gap, H&M and Primark. More interesting shops and restaurants are found in small parades scattered throughout the area. Bellevue Road has a bookshop, a branch of Jigsaw, a café where you can bake your own cake, and Wandsworth’s best restaurant, Chez Bruce. St John’s Hill has Inform for modern furniture, Helen Turkington’s fabric outlet store, Tablemakers for custom-made tables, Regent House Antiques for mid-century pictures, prints and books, and a new small NHS hospital, the St John’s Therapy Centre, designed by architect Bushow Henley, which makes a fine contribution to the streetscape. Old York Road has Mark Plant for kitchens, Sextons for in-car hi-fi and The Pantry, for top-notch breakfasts, lunches and takeaways.

Open spaces: Wandsworth has riverside walks and the wild acres of the common. Smaller parks include Thames-side Wandsworth Park and King George’s Park with the river Wandle on its eastern edge.

Leisure and the arts: the Latchmere Leisure Centre is the nearest council-owned swimming pool. Private gyms with swimming pools are available at Virgin Active in the Southside centre in Wandsworth town centre and at Esporta in West Smugglers Way. At the beginning of this month, Mayor Boris Johnson opened the new Wandsworth Museum in the old library on West Hill. There is a 14-screen Cineworld multiplex in the Southside centre.

Transport: Wandsworth itself is not on the Tube network, but it has two train stations — Wandsworth Town (Zone 2; annual travelcard to Zone 1 is £1,032; 18 minutes to Waterloo), and Wandsworth Common (Zone 3; annual travel card to Zone 1 is £1,208; 14 minutes to Victoria). Some Wandsworth residents live close to East Putney Tube (Zone 2; Wimbledon branch of the District line).

Council: Wandsworth (Conservative controlled); band D council tax for the 2010/11 year is £681.81.


A lake and fountain in King George’s Park, WandsworthSW18: average prices
Buying
One-bedroom flat £259,000
Two-bedroom flat £332,000
Two-bedroom house £483,000
Three-bedroom house £573,000
Four-bedroom house £721,000
Source: Hometrack

Renting
One-bedroom flat £300 to £350 a week
Two-bedroom flat £375 to £475 a week
Two-bedroom house £425 to £475 a week
Three-bedroom house £425 to £650 a week
Four-bedroom house £750-£1,000 a week


Article by Anthea Masey
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October 1 2010

Londoners love to rent

Londoners are adopting the European property habit of renting instead of buying a home. In continental cities such as Paris, Berlin, Brussels and Amsterdam, up to 60 per cent of households rent privately — far higher than in London, where the figure is less than 15 per cent. However, private renting in the capital — which was popular right up to the Sixties, before the home-ownership boom of recent decades — is becoming a new lifestyle choice.
A whole raft of recent surveys and reports shows that home ownership has lost some of its sparkle; the attitude of many people to ownership has simply changed, and not because they have been priced out of the owner-occupation market.
Almost 50 per cent of private renters are aged below 34, and about 55 per cent of the total 3.1 million renters — a million more than 10 years ago — are either singles or childless couples, according to government figures. A growing number have no wish to buy a property, and say they never will. Families and middle-aged downsizers are getting in on the rental act, too (see below).

How the figures add up

Renting allows people more choice and enables them to be more flexible. Apart from lifestyle, there can be compelling financial reasons for renting. Buyers incur much higher costs when moving: stamp duty, legal and survey fees typically come to about £50,000 when buying a £500,000 property. And often, the amount borrowers pay in mortgage interest (not the capital repayments) is more than the rent for an equivalent property. Renters can also take advantage of price dips to enter the market and buy a bargain.
The huge number of better-quality homes available to rent in London leads renters to say they can find homes that are bigger and in a more desirable or glamorous neighbourhood than they could ever afford if they were to buy the same house.
“About 200,000 households have been added to the London rental market over the past decade,” says Adam Challis of property consultant CB Richard Ellis. “The stigma of renting is fading for the younger generation of professionals. Many more people are realising the benefits of flexible housing arrangements.”
Renting should be a middle-class aspiration, according to Jonathan Shaw, Minister for the South-East.
Giving evidence to a parliamentary housing inquiry last month, he said: “Renting is perfectly desirable and meets needs and aspirations. It should be seen more as something that people across the socio-economic spectrum do.”

The Government and the property industry are trying to hatch a new “business model” for private rented housing. Backed by institutions such as big insurance companies, it is likely to take the form of a mid-market “hotel chain”, with branded, well-managed, affordable accommodation in prime central locations.

Home ownership is deeply rooted in British culture, and for many owners property has proved a handsome investment when looked at over many years. Often renting is dismissed as “dead money”, but studies show that on average it is cheaper than buying over a 25-year period — £11,342 less, according to a report published last week.
Demographic changes — more single households, economic migrants, divorcees and students — are boosting rental demand. Moreover, people are getting married and starting families much later in life, so the average first-time buyer age is creeping up, from 27 in the Eighties to 36 now.
Forty-eight per cent of all private rented homes in the UK are in “suburban locations”. Remarkably, only eight per cent are in city centres.
Be part of the action

Rental properties are available at every level of the market in London, from cheap studios to luxury houses, from about £120 to £12,000 a week. Niche companies are sprouting up to serve this burgeoning business. Residential Land has assembled a portfolio of 1,200 homes in central postcodes. Private developers are embracing rentals, too, letting flats instead of selling them because they provide a steady stream of income.
Aristocratic estate landlords such as Cadogan, Grosvenor and Howard de Walden, all past masters at property investment, now routinely offer rentals (rather than granting long leases), as do charitable trusts. Walcot Estate, an oasis of Georgian and Victorian properties within the parliamentary division bell in Kennington, benignly gives grants to local community groups from the rents it receives, helping to improve the neighbourhood in which renters live.
Where to look and what to pay

In general, rents are lower in south London, outer north London and parts of east London. While the cost of a one-bedroom flat in Notting Hill ranges between £1,200 and £2,600 a month, in Crystal Palace it is considerably less, at £625 to £820.
Three-bedroom houses in Islington range from £2,000 to £4,500 a month. In Kensington & Chelsea, the price range is £3,600 to £8,500 a month. For more information, visit www.winkworth.co.uk.
Figures by FindaProperty.com show that the average London rent for a flat is £1,487 a month, and for a house it is £2,264. You can find out the cost of renting in any area of London by using a new interactive website set up by Mayor Boris Johnson. Simply key in the street or postcode and you get area averages for the size of accommodation you want.

This “rents map” reveals that South Kensington is the most expensive place in London to rent (typically, £625 a week). However, the current average rent for a shared house in the capital is only £92 a week. Visit www.london.gov.uk/rents for more information.
Such is the competition for rental properties that central London lettings agent WA Ellis reports “bidding wars”, with tenants paying 20 per cent or more over the asking rent.

Gumtree.com, a rental website, says there has been a 36 per cent “spike”, or increase, in the number of flat and house shares in London over the past year. Owners renting out rooms to get extra income during the recession may have boosted supply.

But there is no doubt that the London rental sector is undergoing a sea change.

Article by David Spittles - Homes & Property
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September 29 2010

Paragon is to return to new lending in an attempt to re-establish a market leading position in the buy-to-let mortgage sector.

The Group has arranged funding via a new warehouse debt facility and will resume buy-to-let lending with immediate effect.

These will be the first new buy-to-let mortgages that Paragon has offered since February 2008 when it withdrew from the market due to conditions in the global financial markets.

Macquarie Bank is providing the £200 million warehouse facility. The Group’s intention will be to use the facility to warehouse loans prior to arranging term funding in the mortgage-backed securitisation markets, where the Group has considerable experience stretching back over 20 years. There has been increasing evidence of a recovery in the asset-backed market with numerous securitisations being launched by a number of major UK and European banks.

Paragon has held bond investor roadshows during 2010 and there is strong investor demand for Paragon residential mortgage-backed securities given the excellent performance of its historical mortgage assets. The number of accounts more than three months in arrears across Paragon’s portfolio of buy-to-let loan assets has continued to fall and is currently 0.86% of the book. This is significantly below buy-to-let market peers and also the wider mortgage market.

Nigel Terrington, Paragon Group’s Chief Executive says:

“Despite the difficult environment over the past three years, Paragon has remained steadfast in its commitment to return the business to new lending when conditions permitted.

“We are delighted to have secured funding on acceptable and sustainable terms to enable us to return to new lending and to work with Macquarie on this significant transaction. They are an ambitious and innovative institution and this transaction demonstrates clear evidence of their intentions to develop a leading role in the UK debt and equity markets.

“This is not only a significant development for Paragon; it is also significant for the wholesale funding and specialist lending markets. Paragon is the first independent non-deposit taking mortgage lender to secure funding to enable it to return to new lending. This shows that investor confidence is returning and the wholesale funding markets are recovering.

“Competition in the mortgage market has been sorely lacking, particularly as specialist lenders have largely been unable to secure funding or Government support to enable them to compete against high street lenders. Nowhere is this more evident than in the private rented sector where tenant demand is strong and expected to grow. This is an increasingly important part of the UK housing market and competition is vital for a healthy and vibrant buy-to-let market and we aim to provide that competition.”


From Propertytalk
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September 28 2010

City banks predict double dip in UK housing market

Global banks have expressed their concerns over the British housing market. US investment bank Morgan Stanley has said that Britain’s housing market is set for a double dip, while Deutsche Bank said that UK house prices remain ‘precariously high’.

Morgan Stanley is forecasting that UK house prices will fall by up to 18% by the end of next year.

Its UK economist Melanie Baker said: “Affordability looks stretched and house prices look over-valued. We don’t think that a weak recovery in supply is enough to prevent a double dip.”

George Buckley, an economist at Deutsche Bank, warned house prices could fall more sharply next year when interest rates rise. He argued that UK house prices had fallen much less than in the US – see our story on DIsney prices – and that they remained precariously high.

Meanwhile, Hometrack reported this morning that house prices have fallen across every region in England and Wales.

Hometrack said it was the first time this had happened since April 2009.

The fall, of 0.4%, is for the third successive month. Reporting for September, Hometrack said that in the last three months the volume of buyers registering with agents has dropped by 6.5%.

The survey of 5,100 agents also shows that properties are taking longer to sell, at 9.3 weeks.

Hometrack director of research Richard Donnell said that the “repricing” process would stretch well into next year.

But he said: “Talk of a double dip, with the implication that the market will see double-digit house price falls, is overdone despite the weak outlook for demand.”

Hometrack puts the average house price at £157,600.
By: Estate Agent Today
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Thurs September 9 2010

Raising the annual rental threshold for assured and assured shorthold tenancies - FAQs

Q. When will the change come into effect?

A. The Statutory Instrument raising the annual rental threshold for assured, including assured shorthold tenancies to £100,000, "The Assured Tenancies (Amendment) (England) Order 2010 - SI 2010 No. 908" was laid on 25 March and the change will come into effect on 1 October 2010.



Q. Why is implementation being delayed until 1 October?

A. This will give landlords the opportunity to prepare for the change.



Q. What are the implications for tenants?

A. Tenants will have the benefits of the protection of the Housing Act 1988. In particular, new tenants will have the benefit of tenancy deposit protection.



Q. What are the implications for landlords?

A. Deposits for new tenancies now within the threshold will need to be protected with one of the three government-approved tenancy deposit schemes. Landlords will also need to comply with the full legal framework associated with assured shorthold tenancies. This includes having the option of using accelerated Court procedures for possession. They will also be able to use “off-the-shelf” tenancy agreements. In addition, they will have to follow the procedures in the Housing Act 1988 when proposing rent increases.



Landlords with existing common law tenancies which will become assured shorthold tenancies when the rental threshold is increased, will not need to protect their tenants’ deposits in a recognised scheme immediately, although we would recommend that it is good practice to do so. They will, however, need to protect the deposit if the tenancy is renewed on or after 1 October, or if a new deposit is taken. We do not consider that deposits taken before 1 October will need to be protected as these were not taken in connection with a shorthold tenancy and therefore do not meet the criteria for protection specified in the Housing Act 2004. Ultimately, however, it is for the courts to decide when deposits should be protected and we are unable to give a definitive interpretation of the legislation or speculate on how the courts might find in any particular case.



Q. What are the implications for letting agents?

A. Letting agents should check their existing tenancies, including those managed on a “let-only” basis and ensure that landlords are aware of the change and its implications. Existing contracts may need to be reviewed and varied to accommodate the change to an assured shorthold tenancy.



Q. Why is the legislation “retrospective”?

A. The legislation does not provide for any transitional arrangements. It is not "retrospective" as such, but will affect all existing and new tenancies from 1 October. Any tenancies that would have been assured shorthold tenancies but for the rent being above £25,000 will become assured shorthold tenancies from 1 October if their rents are below £100,000.



The new rental threshold will therefore affect the existing rights of those landlords and tenants who have already taken out tenancy agreements as well as those entering into new agreements on or after 1 October. We consider the increase is prospective rather than retrospective because it will not affect the rights of tenants and landlords prior to its commencement.



Q. How can landlords seek possession of their properties?

A. Our intention is that the "new" ASTs should mirror existing ASTs. The same procedures for possession etc will therefore apply from 1 October.



Q. What if a landlord serves notice to quit before 1 October?

A. Where a landlord correctly serves notice to quit on a common law tenant, which expires on/after 1st October, it is our view that this would not be effective to terminate the tenancy. This is because by the time the notice expired the tenancy would have become an AST. We advise either serving notice to quit to expire at the latest on 30th September 2010 or serving a section 21 notice after the threshold is in place.



It is our reading of section 21(5)(a) however, that the court will not make an order for possession less than six months after the grant of an AST. This is the Department’s view and only the courts can give definitive guidance.



Q. Will there be transitional arrangements where notice to quit was served before 1 October, but the tenant has not moved out?

A. If a landlord has properly served notice to quit on a tenant occupying a common law tenancy and the notice has expired before the new threshold comes into force, it will still be valid. A correctly served notice to quit terminates this type of tenancy. If the tenant refused to leave the landlord would need to obtain a court order.



Q. What will happen to tenancies entered into before 28 February 1997?

A. Prior to changes introduced on this date, if a landlord wanted to grant an assured shorthold tenancy rather than an assured tenancy, they had to serve notice on the tenant before the tenancy commenced. If a tenancy began before 28 February 1997, the tenant could not have been served with this notice, and will become fully assured on the coming in to force of the changes.



Q. Won’t these changes interfere with landlords’ property rights?

A. Landlords can only seek possession from assured tenants by using one of the grounds for possession in the Housing Act 1988. There is no automatic right to possession. However, as the change will not take effect until 1 October, landlords will have time to prepare. Also, as landlords can charge a market rent for assured tenancies, the property will still be generating a considerable income.







Q. What if they haven’t served the relevant notice for the prior notice grounds?

A. If tenancies become fully assured, rather than assured shorthold, on the introduction of the new threshold, landlords will not be able to recover possession without a ground. These grounds are set out in Schedule 2 to the Housing Act 1988. Some require notice being served on the tenant, prior to the commencement of the tenancy, that the ground may be relied upon. In several cases, the court has power to dispense with service of this notice where it is just and equitable to do so. The courts will be aware that landlords will not have been able to do this and will take this into account. We anticipate this will affect a minority of tenancies, as the majority will become assured shorthold and the landlord will be able to use the notice only ground to recover possession, on expiry of any fixed term.



Q. What about landlords’ human rights?

A. Landlords whose tenants become assured shorthold tenants as a result of the change may suggest that being deprived of their ability to recover their property unencumbered interferes with their rights under Article 1 of Protocol 1 of the European Convention on Human Rights. However, our view is that raising the threshold to bring all tenancies, except those with the very highest rents, under the protection of the Housing Act 1988, restores the position intended in the original legislation, which was to exclude only those tenancies at the very top end of the market. We consider any interference with human rights to be proportionate to the aim pursued.



Q. How will this change affect leaseholders?

A. Changing the rental threshold for assured and assured shorthold tenancies will have no immediate impact upon leaseholders.



However, we recognise that consideration needs to be given to whether amendments are required to the formula within the Local Government and Housing Act 1989 which is based upon the existing rental threshold of £25,000. This formula determines whether security of tenure and the ability to remain as an assured tenant are available to long leaseholders at the end of their lease term.



Q. Will leaseholders coming to the end of their lease be in a worse position as a result of the difference between the £100k used for AST and £25k used to establish security of tenure?

A. The position of such leaseholders remains the same since the existing formula which determines whether they have the benefit of the security of tenure provisions within the Local Government and Housing Act 1989 remains in place.



However in respect of such leaseholders it should be remembered that legislation has made it easier for leaseholders to extend their lease or buy their freehold which will enable them to take a greater stake in their home and these rights are increasingly being exercised. We would then not expect there to be many leaseholders who would be in the position of finding that their leases have reached the end of their term and therefore need to rely on this particular legislation.



Security of tenure where a long lease comes to an end provides important protection for those leaseholders who will have had a significant stake in the property having paid a premium for the lease on which a ‘low’ rent was payable. We wish to ensure that security continues.



Q. Will the leasehold legislation be amended?

A. No decision has yet been taken. We would, of course, consult on any proposed changes.



Q. What about the Landlord and Tenant Act 1987 and the Leasehold Reform Act 1967 which also refer to assured tenancies and the annual rental limit?

A. We are aware that representations have been made in respect of this legislation. We do not believe that any amendments are required to the Landlord and Tenant Act 1987 as a result of the changes being introduced to the rental threshold for assured tenancies. No decision has yet been taken on what, if any, amendments may be required to other legislation such as the Leasehold Reform Act 1967. We would of course consult on any proposed changes.



NB:

Landlord and Tenant Act 1987 – Landlords selling the freehold of a block of flats must offer it to leaseholders and regulated tenants in the first instance.



Leasehold Reform Act 1967 – Rights for leaseholders of houses to buy the freehold or extend their lease.







Q. Will the change apply to Wales?

A. No, the change only applies to England. The Welsh Assembly Government is considering its position as part of its wider work on the private rented sector.



Q. How will the change be publicised?

A. There has already been considerable interest in the proposals. We will continue to work with those in the sector to raise awareness of the change.



Our intention is that new assured shorthold tenants should have the same protection as existing tenants. It is not our intention that landlords should be caught out. We cannot, of course direct the courts, but we will be issuing guidance so that they are aware of the situation.

...........................................................................


Monday 31 August 2010
STUDENTS BOOST VALUES IN UNI CITIES

The arrival of A' Level results marks the scramble to fill university places across the UK. While most first year students get ready to settle into halls, some freshers will join their second or third year counterparts in opting for privately owned housing, boosting the local market, according to new analysis from Lloyds TSB.

More than half (60%) of university towns across the UK have seen house price growth outperform the region in the past 5 years, with the biggest increases appearing in towns that have seen a real uplift in the number of students over the same time.

* Aberdeen - home to 29,300 students- saw a house price gain of almost 40%; compared to 14% price growth across Scotland. This is coupled with a 54% increase in the student population.

* The University of Ulster campus is responsible for a 30% growth in student population in Coleraine since 2005 and has recorded a price increase of 34%, ahead of the 24% for Northern Ireland.

* In Winchester, prices rose by 30% in comparison to 2.5% in the South East - as student numbers in the town were boosted by 78%. The average house price of £385,713 is 114% above the UK average of £180,501.

However, it's more of a mixed picture for some of the UK's largest University Towns, despite an increase in student population:

* Edinburgh, having the eighth largest student population in the UK, has seen house prices rise by 11% in the last five years, as student numbers rose by over a third to 55,195.

* London and Glasgow recorded price growth of just 5% since 2005, although the student population rose by 76% and 43% respectively.

* Student numbers have risen by 66% in Birmingham, but house prices are 3% lower than 5 years ago and just over 11% below the West Midlands average.

* Leeds, Manchester and Nottingham have all seen their student population rise by over a third, but only the West Yorkshire city has an average house price above that of the region.

Nitesh Patel, housing economist at Lloyds TSB commented: "Growing student numbers have had a big impact in boosting house prices in some university towns - where the increase in demand has led to the local market outperforming the rest of the region. However, it's a very mixed picture for some of UK's largest university towns that have seen student population increase significantly without impacting on house prices. In the past five years population across the university towns in UK has increased by nearly a million students. Naturally, this has boosted demand for property and land to provide suitable accommodation for students."

The Lloyds TSB University Town House Price Review, tracks house price movements in 70 university towns across the UK. The review is based on the Lloyds Banking Group housing statistics database, along with data from the Higher Education Statistics Agency.



Friday 13th August 2010

Transaction levels edged up 11% in July compared with the previous month, says the LSL/Acadametrics report this morning.

It said there were an estimated 72,100 transactions in the month, compared with 64,915 in June, and roughly double the number of house sales in January this year.

However, the figure is a very long way short of the 15-year July average of 104,362 transactions.

Of more concern, Acadametrics says that house sales for the period from January to July are an estimated 375,643.

That, too, is way below the long-term average for the same months of 608,301 house sales.

House prices, says the report, rose by just 0.1% in July.

The report claims the average house price is now £220,685 – a great deal higher than the figure the Land Registry, Nationwide and Halifax are all reporting.

Admitting to the mixed picture being painted by various ‘analysts’, Dr Peter Williams, chairman of Acadametrics, said: “We are clearly in a picture of considerable uncertainty and, at best, the market is likely to continue to remain close to flat. That said, there will be strong regional and local variations.

“There is little to suggest we will see any strong recovery in the market in 2010 or indeed into 2011.”

Thanks to Estate Agent Today
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August 12 2010

DEMAND DIPS IN JULY

Just when you wanted to enjoy the holiday period (as best as possible in the current financial climate) the sun goes in, the barbie gets rusty and the flowers in your tubs get soggy. And then along comes the RICS with their latest report which finds that July was the worst month for demand for property and house price falls.

In the July survey, eight per cent more surveyors reported a fall in house prices - the lowest reading in more than a year. In contrast, June saw eight per cent more surveyors reporting rising, not falling prices. Regionally, the only areas which continued to see material price rises in the past month were London and the North West.

Demand for property, measured by the net balance of new buyer enquiries, fell for the second month in a row, from -6 to -10. Difficulty in securing mortgages and increased uncertainty about the prospects for the economy may have contributed to caution from potential homebuyers.

The housing market is always a seesaw of supply and demand but it has been a while since the seesaw jerked up and down quite so violently. When we had HIPS, there were not enough properties on the market. Whether it was really the HIP that put people off selling is debatable, but the number of properties being put up for sale since the abolition of the HIP has risen significantly.

RICS says that “the number of new vendor instructions, which in effect measures the amount of properties coming to the market, increased. 33 per cent more surveyors reported a rise rather than fall in properties to their books, up from 28 per cent in June.

This is the highest reading since May 2007, the month before the initial planned introduction of HIPS. Since the abolition of HIPS in May this year, it appears some homeowners are now a little more willing to test the property market.

In keeping with the trend of increased supply to the market, the average number of properties on surveyors’ books also rose by 4.1 per cent from June, taking the average to 69.1. Meanwhile, the average number of sales per surveyor stayed flat, at 16.6 (down 0.1 per cent).

Looking forward, expectations for house price increases have also turned negative, with 28 per cent more surveyors expecting prices to fall over the coming months, up from six per cent in June.

But property people have learned to keep smiling in tough times. Sales expectations, say the RICS, remain positive, with eight per cent more surveyors expecting sales to rise rather than fall, although this is down from the previous month.

RICS spokesperson, Ian Perry, says “The fall in the RICS house price measure is broadly consistent with most other recent data that has been released. This is a reflection of both the increase in supply following the scrapping of HIPS and the more cautious stance from buyers.

Significantly, the forward looking price expectations numbers suggest that this softer trend will continue through the second half of the year. However, agents are still generally optimistic about sales activity which should benefit from more realistic pricing of properties.”

By the Royal Institute Of Chartered Surveyors
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August 2 2010

The £22 fee homebuyers must pay to find out about issues or restrictions that may affect a property is being abolished, the government has announced.

Until now, legislation stated that a £22 fixed fee should be charged for this information when an individual inspects the records in person. But the law is now being changed to stop people being charged in order to ensure compliance with European regulations relating to "environmental information". These state that checking this type of information in person should be free of charge.
A spokeswoman for the department said that while the law had not yet been amended, its advice to local authorities was that "this should be free from now".

She said there were 736,000 property transactions in England last year, and if this charge had not been in place homebuyers could have saved as much as £16.2m.

By: INEA

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July 28 2010

House prices in England and Wales are now at similar levels to those seen in the summer of 2006, according to the Land Registry.

However, property values crept up by just 0.1% from May to June, taking the average cost of a house to £166,072.

Prices were 8.4% higher than a year ago - the eighth consecutive month that there has been a year-on-year rise.

Various commentators have suggested that house prices are likely to remain relatively static in 2010.

The Land Registry's survey is widely regarded as the most authoritative, although it only covers England and Wales.

Regional breakdown
All regions of England and Wales have seen average property prices rise in the year to June, the Land Registry said.

The highest increase was in London - up 12.2% - with the smallest in the North East of England - up 0.7%.

However, the North East has seen typical house prices drop by 1.3% in the month from May to June. The highest month-on-month rise was in Wales, up 2.9%.
Over the last year, the value of semi-detached homes has accelerated faster than other types of property, up by 9.6%, ahead of detached homes, up 9%, and flats, up 8%.

The latest figures from HM Revenue and Customs show that the number of homes sold in the UK in June rose by 21% from May to 86,000. The sales figures were the highest this year and were up 15% on the same month last year.

A general rise in house prices, which started in the spring of 2009, seems to have reached a plateau this summer, according to the most recent surveys from the Nationwide building society and the Halifax bank.
Forecasts
Extra austerity measures could reduce people's confidence about buying homes, according to Howard Archer, of IHS Global Insight.

"The only marginal house price rise in June reported by the Land Registry maintains our belief that house prices will fall back over the latter months of 2010 and very likely soften further in 2011," he said.

In real terms, house prices could fall by 8% from now to 2015, according to a report by the National Institute of Economic and Social Research (NIESR).

"While we have assumed the housing market remains stable, there remains the risk that house prices in the UK could decline at a more rapid pace," the report said.

"By 2015, real house prices are expected to fall back only to the level of 2003."

A separate forecast published earlier this months by accountants PricewaterhouseCoopers suggested that house prices might not reach the levels seen at the peak of the market for another decade.

By BBC Business News
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July 19 2010
In new data from Nationwide, London homebuyers are likely to pay a £20,000 premium for property 500m from nearest station (compared with a similar property 1,500m from station)

Its research shows the marginal impact on prices is greatest close to stations with average house prices highest around the Circle line.

Martin Gahbauer, Nationwide's Chief Economist, said: “London has an extensive network of underground and surface rail lines which form an important part of the city’s infrastructure. 34% of Londoners usually use either National Rail or London Underground services to travel to work, compared to 8% for Great Britain. Therefore, one might expect those buying property in the capital would prefer to live close to a tube or train station and be willing to pay a premium for this.

“Using the Nationwide House Price model we have assessed how property prices in the Greater London region vary in relation to the distance to the nearest tube or train station. We have isolated the specific impact this has over and above other property characteristics, such as property type, size and local neighbourhood type. Our figures suggest that a property located 500m from a station would attract a 7% price premium (approximately £20,300) over an otherwise identical property 1,500m from a station.”

By: Martin Gahbauer, Nationwide's Chief Economist

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June 16 2010

GOOGLE SET TO ADDRESS THE UK PROPERTY MARKET

Search engine giant Google has today confirmed that residential property listings will be added to its Google maps service. The company claims that “hundreds of thousands” of homes are already being advertised for sale or rent on the Google maps service which is proving to be one of the more popular initiatives of late.

In a rather clever way, which does not alienate any area of the market, Google is allowing both estate agents and private sellers to gain access to Google maps at a price. All of the major property players appear to be in favour of the move and property experts Spicer Haart and Countrywide have been brought into the fold as expert advisers.

For many years there has been speculation that Google was looking to enter the UK property market although in such a way as to not alienate those already advertising with Google. By effectively partnering with some of the UK’s most prominent property sellers and rental agents, as well as offering the same service to the public, this will bring on board a number of very powerful and very prominent property experts. It will be interesting to see how this strategy develops in the future and what kind of income it attracts for the company.

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June 15 2010

Boot & Flogger, Southwark, SE1.

A favourite watering hole with South London estate agents & London property people, the Boot & Flogger was, until recently, the only hostelry in the UK that had the right to sell wine without having a licence, thanks to a charter granted by Queen Elizabeth I in 1567.

There's something pleasantly old-school about the place itself, from its dark wood paneling, little nooks and deep leather button-back wing chairs, to Peter, the pin-stripe suited manager behind the bar. It's part of the venerable wine bar chain set up by the Davy family, which has been trading in wine since 1870. The Boot first opened in 1964 and has the feel of a gentlemen's club, but without the stuffiness.

This is a place for settling back, relaxing and enjoying unsurprisingly top-notch wine, ports and champagnes. Service is charming and solicitous, and food also deserves a mention: reasonably priced and served until 7pm. Options run from olives to solid English fare such as potted shrimps, ham sandwiches or steak and chips.
But what of the name? The boot and flogger was a corking device comprised of a leather 'boot' that the bottle was placed in, with a wooden 'flogger' - a piece of flat wood - which was used to 'flog' the cork into the bottle.

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June 14 2010

London's house prices rising

According to the latest House Price Index from the Land Registry, all 10 regions in England and Wales experienced increases in their average property values over the last 12 months. The region with the highest annual price change is London with an increase of 14.8%.

The annual house price change in England and Wales has remained positive for six months in a row, with a movement of 8.5% in April. This is the highest annual change figure recorded since September 2007. A positive monthly figure of 0.2% increases the average property value to £165,596.

Sales volumes averaged 53,137 per month from November 2009 to February 2010. In comparison to this, during the same months the year before, the figure stood at 32,089.

The data for April shows a continued rise in the capital's annual house price change, with a movement of 14.8%. This is the seventh consecutive month in which annual change has been above zero.

While London's annual change mirrored that of England and Wales for quite some time, the capital's growth rate is now overtaking steadily. The monthly change in London is 1.6%, bringing its average property value to £341,487. In comparison to this is the average for England and Wales, which stands at £165,596.
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May 21 2010
HIPS SCRAPPED BY THE NEW GOVERNMENT !
Home owners no longer have to pay for a HIP when selling their property after the new coalition government scrapped the controversial packs.
Home Information Packs were introduced to speed up the house selling process by obliging sellers to provide certain information about their property when it is first put up for sale.

Ministers suggested the move would save consumers £870 million over the next 10 years as the packs are paid for sellers and cost several hundred pounds each.

Housing minister Grant Shapps said: “Home sellers will get immediate relief. It means they can put their house on the market without having to shell out thousands of pounds.”

Speculation has been rife about when exactly the packs would be scrapped and the government said it had moved quickly to make today’s announcement to avoid uncertainty and to prevent a slump in an already fragile housing market.

Housing experts welcomed the decision, saying it would help home owners and the housing market.

Kirstie Allsopp, the television presenter, said “Is absurd that there was ever this additional expense. I am thrilled to bits because it is really important to help people to sell their home quicker.”

Gillian Charlesworth, a director at the Royal Institution of Chartered Surveyors, said: “HIPs have failed to address the significant problems in the home buying process they were originally supposed to tackle and we are pleased that one of the first acts of the new Government has been to clearly show their intention to abolish them. Taking a swift decision will have minimized the impact on the market and ensured that estate agents who stick to the rules will not lose out.”

However, the decision is unlikely to be popular with thousands of people who retrained as home inspectors to provide the packs as they are likely to lose their jobs once they are no longer compulsory.

Mike Ockenden, director general of the Association of Home Information Pack Providers, said: “More than 3,000 jobs will go and 10,000 will be affected as a result of the suspension of HIPs.”

By: Myra Butterworth, Personal Finance Correspondent. Telegraph.

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May 14 2010

Knight Frank have published the following view on what the new Government means for the housing market....................

The new CGT rate for investors and second home owners - unhelpful for some and irrelevant for others.

The new Government said yesterday that it is looking to charge CGT at the same rate that people pay their normal Income Tax, so in most cases a rise from 18% to 40%.

This change will hit both second home owners and residential investors. The initial response from the industry has been to suggest there will be a mass sell off of investment and second homes.

This is unlikely. There will be some people who will look to dispose of assets sooner rather than later, to avoid the prospective tax. However most investors in residential property are in the market for the long term. With interest rates so low, rental yields have become a more important driver of demand rather than short term capital price growth.

For a large number of investors, the real attraction of property at the current time is that the alternatives look very unattractive – cash provides almost no return and equities are regarded with barely disguised mistrust.

For second homes there will undoubtedly be potential buyers who will think twice about their purchases. However nearly three-quarters of second home buyers purchase a second home with the intention of retiring to the property in the future (according to the Knight Frank survey of second home ownership intentions - April 2010). Therefore for the majority of buyers the CGT changes are an irrelevance.

No mansion tax – a welcome admission of reality

If ever there was a populist tax proposal designed for its political rather than tax revenue advantages – the Mansion Tax was it. The proposal is now safely in the bin.

HIP abolition needs to go further

The announcement that the HIP is to join the mansion tax proposal in the bin is to be welcomed – it will encourage more speculative vendors to come into the marketplace and save vendors a lot of wasted money.

The need to provide an EPC, which is an European Union requirement, will remain and is still hurdle to get properties to market. The objective must be to follow the French and the Portuguese and require an EPC only when terms have been agreed on a sales – not prior to marketing. Only if this happens will the full damaging legacy of HIPs have been removed.

Stamp Duty changes

The new £25,000 zero rate band of Stamp Duty is now likely to become a permanent feature, Alistair Darling had introduced it as a temporary two year measure in his final budget – the Conservatives are wedded to extending this measure indefinitely. The new 5% £1m+ rate will be likely to survive the first budget and will still be introduced in April next year, leading to a flurry of sales late this year and early in 2011.

Silence on the mortgage market

Nothing to date has been mentioned abut the need to encouraging the re-growth of the residential mortgage-backed securities and covered bond markets. Without this is will be very hard for the main mortgage lenders to repay the £314bn they owe to the Bank of England, under the Special Liquidity Scheme, and which they are due to start paying back from next year.

By Knight Frank
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May 14 2010

The estate agency market has been left in the dark about future housing policy by the newly-created coalition government, which in an agreement published May 12 issued a range of new policies lacking both detail and any reference to timing.

According to the agreement issued by the Conservative-Liberal Democrat coalition party, led by the newly-appointed Prime Minister David Cameron (pictured), capital gains tax will be hiked in line with income tax, which many industry pundits believe spells disaster for the private-rented sector and property supply.

The agreement also pledges to retain Energy Performance Certificates, as required under European law, but to scrap Home Information Packs.

The pledge was revealed as one of a range of bullet points within the 11-section document under the heading ‘environment', which also includes low-carbon and eco-friendly pledges to help boost home energy improvements.

But detail was lacking on both the timing of the planned abolition of the packs, and on what vendors and agents are supposed to do in the meantime, which some critics fear will prompt a breach of the HIPs regulation, with properties being marketed without HIPs in place.

The coalition agreement has been published ahead of an announcement about the appointment of a new housing minister.

And there is no indication whether Grant Shapps and Sarah Teather, Conservative and Liberal Democrat shadow housing ministers respectively, were sole contenders for the position.

Meanwhile, Mike Ockenden, director general of the Association of Home Information Pack Providers, refuses to believe that the statement sounds the death knell for HIPs.

He says: "There's nothing there that says the party is not going to consult on HIPs, which was the commitment that was given in the first place by Shapps.

"So this doesn't mean that if HIPs are scrapped there isn't a next stage of reform to be introduced."

He adds: "We're not rolling on our backs and saying ‘HIPS are gone, oh dear, woe is us.' There's a still a proper conversation to have with this new administration and we look forward to having that."

Ockenden claims that 3,000 jobs are under threat directly, and by extension up to another 10,000, if HIPs are scrapped.

Negotiator May 14 2010
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May 14 2010.

NEW GOVERNMENTS CGT PLANS

The newly-formed coalition government has proposed to hike capital gains tax. These are the implications.


What is the proposed capital gains tax change?

The coalition government is expected to set out plans for a rise in CGT on the sale of second homes, buy-to-let properties, shares and other investments. The CGT details will be included in an emergency budget where it is thought CGT will raise from 18% to 40% or even 50% in order to pay for the increase in the income tax threshold to £10,000.



Does the proposal simply mean that CGT will be moved in line with the current income tax bands?

That is the suggestion, but it has not been confirmed and it is possible that it will not be quite as high as 40%. We will find out the exact level during the Emergency Budget which will be called within 50 days of the agreement which works out as the end of June.



Is the CGT change definite?

The coalition government has confirmed a change to CGT will take place, but details as to how they will change it and the exact level has yet to be announced.



When is the change likely to take effect?

The new Chancellor is expected to set out plans for a rise in CGT at the start of the new tax year in April next year.



I'm a lettings agent. How will it impact me?

The change is expected to hit buy-to-let hard. It will cause pain to the housing market at exactly the time when more investors are badly needed to fill the demand for rental accommodation. The rise may also create a rush of property sales before it comes into play.



What about my BTL clients? What advice should I give them?

If looking at buying, a BTL client will need to factor in additional tax when considering the merits of making an investment. For those considering selling properties, it may be worth trying to do this before any new increases come in. That said, we need to see the detail of the proposals. At this stage, there is a degree of speculation as to what the exact changes will be.



Should professional landlords consider restructuring and/or reducing the size of their portfolios? Or should they wait for further detail from the government?

It is thought that any changes would take effect from April 2011. If that's the case, it is worth waiting to see the further detail. If it were to change on the date of the Emergency Budget though, action should be taken today. The key issue is when any changes will take effect, and that is down to speculation.



Is it really worth a landlord with one or just a few properties continuing to be a player in the private rented sector?

Yes, it is. However landlords need to consider the impact on post tax returns and evaluate these in accordance with other alternative investments. The proposed changes are likely to have the same impact on other proposed investments. This is unless they can fall to be treated as business assets although we have yet to see the definition of this.



Is there any chance there could be an alternative structure introduced, such as one based on taper relief as we have had before?

Anything is possible, and it is hoped that the government will bring in a form of taper relief or something similar.



How would that work in today's housing market, and specifically the BTL market?

If it was brought in, it is likely that the relief would increase the longer the property was held for. We have had tapering provisions in the past that encouraged longer term ownership, and so it is not inconceivable that they will introduce something along these lines.

By Clare Hartnell. Global head of property at Grant Thornton


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May 13th, 2010

Coalition Plan To Double Capital Gains Tax

Now the fuss has died down over the 'Cameron and Clegg Love-in' on the lawns of Downing Street, we've had chance to look through the coalition deal in greater detail. There's some encouraging ideas, from a higher threshold on income tax to the reduction in DNA retention. But buried halfway down the document is this concise but dangerous paragraph...

"We further agree to seek a detailed agreement on taxing non-business capital gains at rates similar or close to those applied to income, with generous exemptions for entrepreneurial business activities"

What this means in laymans terms is an increase in Capital Gains Tax on buy-to-let properties, from 18% to 40%. This aggressive act is going to hit the city centre property market particularly hard, where many vunerable buy-to-let investors hang onto their properties by the skin of their teeth. If the act takes over 50 days to come into affect, this could result in a flood of apartments coming onto the market as investors scramble to beat the impending rise. Could this Libdem/Tory initiative lead to a crash and the return of Boom and Bust?

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May 5 2010
THE HIP COULD BE REACHING THE END OF THE ROAD

As the opinion polls start to appear to be swinging towards a Conservative Party victory, it would appear that Gordon Browns reign is about to end.
Labour oversaw the introduction of Home Information Packs in August 2007 and with them - Energy Performance Certificates, created under the European Energy Performance of Buildings Directive.

A sizeable industry has grown out of the requirement for HIPs and a cut throat market has brought about recent casualties like HIPHIPHooray and MySalePack.
The future for HIPs continues to look bleak unless Labour retain control.
The following extracts from both the Conservative manifesto and the Liberal Democrats will surely signal the end for Labour's unpopular attempt to re-invent the Home buying process

Abolish Labour's expensive and unnecessary Home Information Packs which increase the cost and hassle of selling homes. – Conservative Party Manifesto

Scrap Burdensome Home Information Packs, retaining the requirement for homes to have energy performance certificate.
Liberal Democrat Manifesto

As for Energy Performance Certificates – our friends in Europe will be responsible for ensuring that these remain a legal requirement for all properties bought, sold and rented.
RIP to the HIP & we can live with EPC's

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April 28th 2010

The new East London rail route will provide a major housing market boost that transcends the age-old north/south divide in the capital.

The long-awaited £1billion extension of the old East London Line opens up a brand new overground route between Dalston Junction in the North and West Croydon to the south of the capital, offering swift central London access from both sides of the river Thames.

Expected to service 100,000 commuters a day, the new line has the potential to dramatically transform the fortunes of homeowners along the twelve mile route.

A development like this will boost property price growth North and South of the river along the new route and provide a valuable tool for vendors to woo elusive buyers in the current competitive market. Landlords in the areas will also benefit from strengthening an increasingly robust lettings market, as greater accessibility opens up new parts of London to the rental market.

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April 21 2010

Nine Elms, Wandsworth.
Treasure Holding's Battersea Power Station development is now with the local council for approval, which, if given, will provide around 1,000,000 SqM of floor space for homes, shops, restaurants, pubs & bars.

The Garden at New Covent Garden Market have revealed plans for about 2,300 new homes....... more to follow on this one.

The developer, Ballymore has secured the sale of 5 acres for the new American Embassy and will build a mainly residential scheme on the remaining 13 acre site. Work is expected to begin in 2012.

Good news for rail travellers - the East London Line is to be extended to the Wandsworth Road by 2012 & there are plans to extend the Northern Line to Nine Elms & Battersea Power Station.
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Wednesday 21st April 2010

First-time buyer numbers at a 20 year low....

The number of first-time buyers in the UK property market hit a 20 year low in the year to February with just 347,000 new entrants to the property market. While this compares a little more favourably to the 331,374 a year earlier it is well below the figure of 700,000 back in 2004/05 and perfectly reflects the difficulties facing the UK property market.

There are also concerns that the UK government’s stamp duty holiday for properties valued at under £250,000 will have little impact in the short to medium term unless more financing is made available by the mortgage sector. When you consider that first-time buyers are the food and water of the UK property market it is difficult to see how we can expect a significant increase in activity and property prices in the short to medium term. So what is going wrong?

Aside from the lack of liquidity in the mortgage market, especially for first-time buyers, many mortgage lenders have also increased their deposit requirement which has effectively priced the vast majority of potential first-time buyers out of the market place. Until deposits are reduced, liquidity is increased and more promotions announced for first-time buyers we are unlikely to see a marked increase in the number of new entrants to the property market.

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April 13 2010

Poll suggests improved property market under Tories........................

Almost forty per cent of house hunters believe the property market will improve if the Conservatives win the General Election, a survey from FindaProperty.com has revealed.

FindaProperty.com, one of the UK’s leading property portals, surveyed 14,800 of its users on whether they felt the property market would improve, remain unchanged, or deteriorate given three different election outcomes.

If the Conservatives were to emerge victorious, 39% of house hunters say the market will improve, while a further 39% believe it will remain unchanged. Just one fifth (22%) think the market will deteriorate under a Conservative government.

In contrast, 14% of house hunters believe the market will improve following a Labour victory, with almost half (48%) saying it will remain unchanged and 38% feeling it will deteriorate.

A hung parliament is the most worrying scenario for house hunters. Less than one in ten (9%) feel the market will improve if no party wins an outright majority, with 43% believing it will deteriorate.

Despite the uncertainty around the outcome of the election, house hunters are not letting the impending election affect their decision to continue searching for a property. Eight in ten (83%) people searching for a property stated that they will continue their search despite the upcoming election and three quarters (74%) said that the election result would not stop them buying a property.

Nigel Lewis at FindaProperty.com, says:

“We’ve found that the election is unlikely to put people off their property search, but many home buyers have an opinion on what will happen to the market after the election.

“It seems the majority of house hunters believe the best thing for the property market would be a Conservative victory. Their policies on the deregulation of the market and ensuring only millionaires pay inheritance tax have really struck a chord with the voting public.

“Many polls are pointing towards a hung parliament though and that is worrying. House-hunters feel this would be the worst scenario for the property market as the parties battle it out to form a coalition, putting policies on hold while compromises are made.”

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April 5 2010

The Bank of England has released figures on lending to individuals in February 2010.

Total net lending to individuals rose by £2.1 billion in February. The twelve-month growth rate increased by 0.9%. The three-month annualised growth rate was 1.5%, a 0.2% increase on January.

Within the total, net lending secured on dwellings (mortgages) increased by £1.6 billion, above the January increase of £1.5 billion and the previous six-month average of £1.4 billion. The twelve-month growth rate was unchanged, at 1.0%. The three-month annualised growth rate was also unchanged, at 1.4%.

However, the number of loan approvals for house purchase (47,094) was lower than the January figure (48,099) and below the previous six-month average (55,130).

Approvals for remortgaging (27,297) were higher than in January and also higher than the previous six-month average, while approvals for other purposes (25,017) were higher than in January but still below the previous six-month average.

Consumer credit increased by £0.5 billion, above the previous six?month average of a net repayment of £0.1 billion, and also above January's net increase of £0.3 billion. Credit card lending increased by £0.4 billion and other loans and advances increased by £0.2 billion. The annual growth rate of consumer credit increased by 0.3 percentage points to 0.2% and the three-month annualised growth rate increased by 1.4 percentage points to 2.1%.

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March 29th 2010

Nine regions in England and Wales experienced increases in their average property values over the last 12 months. The region with the highest annual price change is London with an increase of 11.9 per cent. The region with the most significant annual price fall was the North East with a movement of -2.3 per cent.
The North West experienced the greatest monthly rise with a movement of 3.6 per cent. Wales was the region with the most significant monthly price fall with a movement of -2.4 per cent.

The most up-to-date figures available show that during December 2009, the number of completed house sales in England and Wales rose by 89 per cent to 73,889 from 39,138 in December 2008.

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March 29th 2010

Students are paying 22 per cent more for their accommodation this year than in 2006-7, according to a new survey of providers carried out by the National Union of Students (NUS) and Unipol Student Homes.

This rise comes despite the fact that student support has increased only to account for inflation, yet the rental rise is 13 per cent above inflation over this period.

Student housing charity Unipol and NUS expressed concern at ever increasing rents with fewer property types being available for rent. The report calls for universities and private providers to ensure that affordability and choice are reflected in the development of accommodation.

Wes Streeting, NUS President said:

"Students are already graduating with tens of thousands of pounds of debt, and soaring accommodation costs will only make the situation worse. With graduate job prospects at an all time low, things are looking very bleak for many students."

"It is remarkable that, despite the fact that students are already incurring huge costs in order to obtain a degree, some vice chancellors and private providers think it is acceptable to both argue for higher tuition fees and slam students with excessive rent prices. Students simply cannot afford to be hit with this double whammy."

Martin Blakey, Chief Executive of Unipol said:

"Just as property prices could not go on rising forever, there is a point at which these kind of rent rises must slow and we are now seeing this in 2010. Whilst high quality student accommodation is to be welcomed, it is of concern that lower priced accommodation is no longer available.

"Educational institutions must make sure that they maintain a range of accommodation types at a price that all of their students can afford."

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March 24. 2010

As expected, Alistair Darling has raised the Stamp Duty threshold for first-time buyers to £250,000. The change will kick in at midnight tonight and will last for this year and next.

The Chancellor said that it would mean that nine in ten first-time buyers would not have to pay the tax.

The lifting of the threshold will be financed by a raising of the rate payable on properties over £1m, to 5%.

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February 26. 2010

The Rental Market improves........

For the past 18 months or so, Landlords have been weathering the economic storm while rents and property values dipped, but it looks like the situation may be easing now as “accidental landlords” exit the buy-to-let scene, & the market is no longer awash with a surplus of properties to rent.
If this reduction in supply continues, landlords may see a further recovery in rental values over the coming year."

• Following two months of declining values, asking rents increased by 1.2% in February to £814pcm from £804pcm in January
• Average rental values are now 1.9% (£16pcm) lower than a year ago (£830pcm)
• Properties let within 59 days in February - a week longer than last month
• The supply of properties available to rent fell by 3.6% to the lowest level since November 2008
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February 4 2010

Registry reveals 24% increase in sales.

The number of properties sold in England and Wales between July and October 2009 averaged 58,000, according to the Land Registry.

This is 24% up on the 46,655 transactions recorded for the same period in 2008. The number of sales of properties across England and Wales priced over £1m increased 55% from 323 to 500 during the year to October 2009, but the highest level of activity was seen in the £800,001 to £1m property price band, with transactions up 72% from 242 to 416.

Meanwhile in London, the number of properties priced over £1m increased by 86% from 155 to 288, according to the Land Registry’s latest statistics, out today [January 29].

In terms of prices, the average price of property across England and Wales increased by 0.1% during December and 2.5% during the previous year to £161,783, which is the eighth month in a row in which the monthly change has been above zero.

Seven regions in England and Wales experienced increases in their average property values over the last 12 months, with London having experienced the highest annual price change of 6.1% to £324,352 while the North East and West Midlands experienced the greatest monthly rises of 1.9%. Wales experienced the highest monthly and annual price falls of 2% and 2.5% respectively.
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February 2 2010.
New restrictions planned for HMOs.......

Housing and Planning Minister John Healey announced new local powers to control the spread of high concentrations of shared rented homes and to tackle pockets of unsafe and substandard accommodation run by bad landlords.

In a nutshell....... The Minister said that he would legislate so the new rules would come into force by April this year. The changes mean that landlords will need to apply for planning permission in order to establish a new HMO with a change of use, for example when the use of a property is altered from a family home to a shared house, with three or more tenants who are not related.

Mr Healey confirmed new powers for local councils to manage the unplanned spread of Houses in Multiple Occupation (or an HMO) in towns and cities. The cluster of too many shared houses can sometimes cause problems, especially if too many properties in one area are let to short term residents with little stake in the local community. Tenants can also suffer from poor conditions and management of the properties by landlords.

A Government consultation on how to tackle this long-standing issue closed last year. It attracted around 900 responses, published today, from local authorities, residents associations, universities, individuals, MPs, councillors, and campaign groups. The large majority of those who responded supported a change to the so-called Use Classes Order, which defines how a property can be legally used, and the introduction of a definition of what constitutes a HMO.

Mr Healey responded to the consultation by confirming changes to the planning rules, giving local authorities the powers to manage the development of HMOs in their area, in turn helping stem the growth of large pockets of shared homes - which can change the balance and nature of communities.

The Minister also published plans for councils, giving them extra flexibility to license landlords, requiring safe and quality rented accommodation in neighbourhoods where large numbers of substandard properties can be a magnet for community problems.

In a consultation published today, John Healey proposes to give a general consent for councils to introduce licensing schemes, without seeking permission from central Government, in hotspot areas where landlords do not maintain or manage their properties properly. A general consent would ensure that decisions on the quality of rented homes are made by those who are aware of the local issues and needs of the community. In the future, tenants will see improved standards and councils will be better able to deal with the worst landlords that drag down the neighbourhood.

Mr Healey also confirmed that detailed work is now underway for a new National Landlords Register, to help raise standards of private rented accommodation further. For the first time it will give landlords and tenants easy access to clear advice and support. It will also be the way in which landlords and tenants can be kept informed of basic rights and responsibilities.

John Healey, said:

"Today I am giving councils more local powers to crack down on the worst landlords and stop the spread of high concentrations of shared homes where it causes problems for other residents or changes the character of a neighbourhood.

"Private landlords play a big part in meeting the housing needs of millions so I want to raise the standards and stamp out the worst landlords that drag down the reputation of the rest. Councils know their communities and are best placed to help tenants facing landlords who rent unsafe or substandard accommodation and take little responsibility for the problems caused for neighbours.

"It's also right that tenants have the information they need about potential landlords, and know what to do when things go wrong. The new National Landlords Register I will set up will give them access to this important advice.

"Everyone deserves a decent and safe place to live and these measures aim to improve standards of the private rented sector at a time when more people look to rent as their first option in the housing market."

Many towns and cities across the country have suffered the effects of a concentration of HMOs. Market, coastal and university towns have reported problems due to large student populations and HMOs, meaning shops, businesses and pubs simply close down creating 'ghost neighbourhoods'.

The consultation identified the problems linked with high concentrations of HMOs and looked at ways of dealing with the difficulties. John Healey today confirmed that new local powers will be in place by April this year. The changes will include a specific definition of an HMO and a general consent for councils to set up local landlord licensing schemes.
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February 2 2010

Hundreds of never-lived-in new apartments — all failed completions in the same Docklands development — are to be sold at 40 per cent less than their original owners paid for them two years ago, says David Spittles

From £160,000: Indescon Court, a new apartment complex only five-minutes’ walk from the Canary Wharf business district
Galliard Homes’s February “liquidation stock sale” is at Indescon Court, a new apartment complex only five-minutes’ walk from the Canary Wharf business district. Prices start at £160,000.

Many of the original buyers were buy-to-let investors who have been unable to secure mortgages on the properties and have therefore defaulted.

“This is no gimmick,” says Galliard’s Madeleine Flower. “We need to sell quickly to keep our bank happy.”

Galliard conducted a similar “fire sale” of flats at a block in Poplar in the summer of 2009. Then, a queue of 500 people clamoured to buy a property, enticed by adverts claiming discounts of up to 50 per cent below original contract prices. Two-thirds of the flats were purchased by owner-occupiers.

“The reduced prices at Indescon Court represent a big saving, and are probably the lowest the Canary Wharf area has seen for a decade,” she adds. “This could be the last opportunity to buy at the bottom of the market.”

On average, the revised prices equate to about £500 per sq ft. At the peak of the boom in 2006, values in this part of Docklands reached nearly £1,000 per sq ft.


Would-be buyers will be able to view the finished flats at Indescon Court
Would-be buyers will be able to view the finished flats and exchange contracts by paying £1,000 on the day and committing to pay the full 10 per cent deposit within 21 days. Galliard says both the new price and the “previously exchanged price” will be displayed on the door of flats for sale. Original prices can be authenticated by on-site lawyers.

Underground parking spaces are available by separate negotiation. Call 020 7620 1500 or visit www.galliardhomes.com.

A second phase of Indescon Court, yet to be built, will bring the total number of apartments to 364.
By: Homes & Property
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February 1 2010

New purchases by Daily Mail's Digital group

Fresh from its purchase of a 50% stake in Globrix, the Daily Mail’s Digital Property Group has bought Dothomes.co.uk and Extate.co.uk

It is understood that both had been on the market for some time. Originally launched as Google-style search engines, they apparently failed to make the impact expected. They were acquired by Digital from BytePlay, which says it will relaunch in the UK the first of the property mapping offerings – OnOneMap.

All traffic to both dothomes and extate has been redirected to FindaProperty.

Both FindaProperty and Digital’s other main site, Primelocation, have registered record daily visitor traffic levels in January.

On January 18, FindaProperty received just short of 215,000 unique visitors, 11,400 more than its previous best in August 2009. The following day, Primelocation achieved its best 24 hours to date by attracting over 168,000 unique visitors.

Both sets of data are, however, easily outstripped by Rightmove, which claims that it broke the million visitor mark on a single day this time a week ago, on January 25.

By Estate Agent Today
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February 1 2010

Listings continue to shrink, says worried Hometrack

House prices are up across only 7% of the country, with sales agreed down 4.2% in January, and listings down by 1.3%, compared with December. There was also a 2.2% drop in new applicants with time on market increasing to 8.6 weeks from 8.3.

Hometrack reported this morning that the only areas where house prices have risen are in London, the South-East and South-West.

Richard Donnell, Hometrack’s director of research, said the continuing decline in stock was of concern and that the housing market had got off to a sluggish start in the new year.

He said there was a skew in transactions towards higher-value properties in better-off areas. He said over 10m households had little or no need of a mortgage and, against a backdrop of low supply and limited funding, buyers from this affluent group had fuelled price rises in affluent areas last year.

He warned: “This has led to the general health of the housing market being over-stated. The market bounce-back of 2009 was distinctly one-dimensional and the outlook for 2010 is less certain.”

By Estate Agent Today
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January 29 2010

This could be the best time to sell your house
The housing market faces its worst shortage in living memory: with 1,500 buyers chasing 150 properties in some areas.

Bea Piazza is an estate agent and she can’t find a house to buy. She wants a little two-bedroom Victorian cottage in Weybridge and has been looking since last August. She has sold her own property and moved in with family while she waits. Her funding is in place and she is ready to go — but where to? In six months of searching she has found only six properties to view, and none to buy.
The shortage of houses for sale is the worst in recent memory. “I am in lettings but I know all the sales agents and they are saying they have nothing to sell. People are just holding back on putting their houses up for sale,” Bea says. Estate agents Jackson-Stops & Staff, for whom she works, say that of their queue of buyers, 41 per cent are in an equally strong position — renting, cash-in-hand, or with nothing to sell. “The lack of choice leaves them having to renew their tenancy agreements, which removes them from the market for another six months,” says Susie Hall at the firm’s Weybridge office.

By: Caroline McGhie .The Telegraph
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Jaunuary 29 2010

London is still a top performer.

While the capital’s Prime property markets have not been immune to a seasonal cooling-off of prices due to lower levels of activity from domestic buyers, they were still among the top performing regions for annual growth in January. Prime and Prime Platinum property recorded price increases of 5.3% and 8.6% respectively.
North West London was the best Prime performer over the course of the month. Prices in the region were driven up by a drop in the number of new properties coming onto the market during a period of sustained demand. The region also experienced the lowest annual
growth in stock at 1.4% - an increase almost 15% less than that of the next closest London region.

By TDPG Reasearch
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January 29 2010

TV'S Fame Academy mansion is set to become the world's most expensive house, with a price tag of £150million.
The sprawling estate in north London has been snapped up by a developer who plans to restore it to its former glory.
And he wants to smash the world record by putting it on the market for a fortune.
But anyone who fancies buying it would need to keep up mortgage repayments of £1m a MONTH.
The 25-bedroom property, known as Witanhurst, is a Grade II listed building and housed the contestants of BBC1's Fame Academy.
Set in 5.5 acres, it was also used for filming dramas Tipping The Velvet, Nicholas Nickleby and Dead Gorgeous.

The house is the largest private residence in London after Buckingham Palace but the interior has deteriorated over time.

Article by INEA
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January 21 2010

Digital Property Group will run Globrix.

It appears The Digital Property Group is to take control of the management of Globrix following the acquisition of a 50% stake in the portal by TDPG’s parent company, Associated Northcliffe Digital.
The deal should boost TDPG’s unique visitor traffic to 2.5 million, which compares with Rightmove’s 2.9 million visitors, strengthening TDPG’s position as the second most popular property portal in the UK based on comScore statistics.

This comes just two months after Globrix management, including chief executive Daniel Lee, undertook a management buy-out of the business, ending its partnership with News International.

The chief executive officer of TDPG, insists that Globrix will remain as a free-to-list portal.

By: The Negotiator Magazine
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January 19 2010

Bank of England keeps Bank Rate at 0.5%
The Bank of England's Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The Committee also voted to continue with its programme of asset purchases totalling £200 billion financed by the issuance of central bank reserves.

The Committee expects the announced programme to take another month to complete. The scale of the programme will be kept under review.

The minutes of the meeting will be published at 9.30am on Wednesday 20 January.

The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009. A programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009. The most recent change in the size of that programme was an increase of £25 billion to a total of £200 billion on 5 November 2009.
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January 18 2010

Prime London market grows for 3rd consecutive quarter

The bounce back in the prime central London property market continued for the third consecutive quarter, showing gains of 4.6% in the last three months of 2009.

This brings annual growth to 8.8% in the whole of 2009 and the total bounce since the bottom of the market (March 2009) to 13.4%, according to the latest analysis from Savills Research. This leaves the prime central London markets just 13% away from their peak levels of 2007.

"Prospects for the London market in 2010 look much better than for the rest of the country," according to Yolande Barnes, head of residential research at Savills.

"But we still foresee a weakening of house price growth, even in prime markets, to result in a flattening of growth with a marginal -1% fall by the year end," she said. "This has been made more likely by the signals given in the chancellor’s pre-budget report that remuneration for City high flyers will be curbed. This is likely to reduce both the amount of bonus money available and going into the prime central London property market."

For those with lump sums to invest in the prime central London property market, average gross rental income yields of 4.6% on flats and 3.9% on houses, could look a lot better than interest paid on deposit accounts at present, especially as rents are now growing again at an annualised rate of about 5%.

While Savills believes that medium and long-term capital growth prospects are good, stock selection is key as there are likely to be wide discrepancies between the performance of different locations and different types of property.

Looking back over the past decade, this was certainly the case. The average growth in value of a prime central London property between December 1999 and December 2009 was 83.4% according to the Savills prime central London index. "But behind this figure are some big variations – both in the volatility of growth since the credit crunch and between different places," Barnes said.

These variations mean that someone investing in central South West (Chelsea, Knightsbridge, South Kensington) flats in 1999 would have seen growth in the value of their portfolio of just 40% while, if they had put their money into flats in the central West markets (Kensington, Holland Park, Notting Hill) they would have seen 96% growth.

By putting their money in houses rather than flats, they would have seen capital appreciation of 128% and 115% respectively - in the same locations.

Generally, the higher the growth seen in a sub-market during the boom years, the harder the falls in 2008 were. The subsequent bounce-back has been much more pronounced in the market for houses than the market for flats – with the exception of flats in the prime South-West suburbs of Clapham, Wandsworth, Putney, Wimbledon and Richmond, which, being cheaper, more accessible and readily lettable to the mid-market, appear to be favoured by investors at present.

"The differing fortunes of places and property types have to do with both property and neighbourhood types and the people who buy into them," Barnes said.

"Places that became more fashionable over the decade, like Notting Hill, for example, fared very well but other locations and property types escaped the limelight."

Some of the highest growth seen in the decade has been in markets favoured by those working in the financial services sector. The markets in Kensington, Holland Park and Notting Hill, serviced by the Central line with its links directly into the heart of the City, were particularly popular with those with wealth made in the financial markets. Houses in these locations saw the second highest growth of the decade.

At the same time, those with families increasingly favoured the South West suburbs also known as "Nappy Valley", where the value growth of houses has been the third greatest of all the sub-markets studied.

By Mike Jones, Propertytalk
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January 17 2010
London villages: Bow
City folk are discovering the well-connected East End enclave....

Bow, London E3, has been “the next big thing” for several years, and has attracted its share of eminent residents, including the Slumdog Millionaire director Danny Boyle. But it has somehow failed to achieve quite the status of neighbouring Victoria Park, a West London-type enclave in Hackney, or Bethnal Green, which has great transport and is close to Brick Lane, East London’s hippest quarter. The reason for Bow’s inability to achieve A-list village status is perhaps its proximity to the stark vistas of Olympic Park in Stratford. But this could yet become its key advantage.

What are the properties like?

Bow Road splits the area into two. The southern part, towards the Thames, is decidedly grittier but there are lots of new developments, such as Caspian Wharf near Devons Road on the Docklands Light Railway. Studios start at £169,950.

The principal attractions of the northern section are the townhouses in the conservation area between Mile End Road and Roman Road. Georgian Tredegar Square has the best houses, starting at £900,000 for four bedrooms and a garden; but these do not often come on to the market. Tredegar Square’s similarity to the squares of Notting Hill has been noted by film-makers; scenes from the BBC Two drama The Line of Beauty were shot there. Bow Quarter, a modern development in the northern section, is a popular conversion of the Bryant & May match factory, where female workers staged a strike in 1888 in a defining moment of labour relations history. One-bedroom flats start at £225,000.

Anywhere to go out?

Roman Road has a market and pie-and-mash shops. The Morgan Arms, a pricey but fabulous gastropub on the corner of Morgan Street and Coburn Road, won an award for London’s pub of the year in 2005. The Palm Tree is a traditional pub where the clientele get up to sing cabaret-style (Bill Murray was won over by its charms when working in London on the animated film Fantastic Mr Fox). There are darts and quiz nights at the Coborn Arms, another East End local. Many residents head to Bethnal Green, Canary Wharf and Victoria Park, where Lauriston Road offers bars and restaurants such as the Fish House and the Empress of India.

Good transport links?

Probably Bow’s best asset. Bow Road Tube is on the District and Hammersmith and City lines; Bow Church DLR is near by. Mile End Tube is impeccably connected — it’s on three Tube lines and the trip to Bank on the Central Line takes seven minutes.

How about green spaces?

Victoria Park is huge, and charming, with the added bonus of a lake and music festivals in the summer. Regent’s Canal towpath is popular for walks and bike rides, to Canary Wharf in one direction and Broadway Market and Islington in the other.

Are there good schools?

Clara Grant primary and Old Palace primary are rated as great by the Good Schools Guide. Morpeth school is a good co-ed in nearby Bethnal Green. City of London School for Boys and City of London School for Girls are both independent.

Do you feel safe?

Bow was once proper East End gangster territory (the notorious Kray twins owned a club here) and it still feels — and looks — dodgy in parts. But locals say that street crime is rare.

So is it a good investment?

Richard Everitt, of Winkworth’s Bow office, says that the area could be the greatest beneficiary of the Olympics as it is “ideally positioned” between Stratford, Docklands and the City. “As soon as the economy recovers, I suspect house prices, and the gentrification of Bow, will quickly follow.”
By Francesca Steele Times on Line
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January 17 2010
Has the housing market caught a cold?

For the next few weeks, a simple question will dominate in the housing market — is it the beginning of a new slowdown in prices, or just seasonal?

Given that many people couldn’t get out of their own drives, let alone into somebody else’s, it is not a surprise that the housing market has not really got started this year.

The Royal Institution of Chartered Surveyors (Rics) thinks seasonal factors explain the modest slowdown in its latest survey. The proportion of surveyors reporting a rise in house prices minus those reporting falls slipped to 30% last month, from 35% in November, with most of the strength in London, the southeast, the southwest and East Anglia, but prices falling in the north and the Midlands.

Other measures in the survey were weaker, with buyer inquiries, sales expectations and the ratio of sales to stocks all slipping back, even before the snow came.

Yet Jeremy Leaf, of Rics, cautions against reading too much into this. “The recent loss of momentum in prices can in part be attributed to the housing market pulling down its shutters for Christmas,” he said. “It is likely that the new year will see more interest and activity in the market, as those who held back start to market their property with renewed optimism.”

Will it? The seasonal adjustments Rics appplies should take care of the Christmas holiday period. January is a different matter: the exceptionally bad weather means much of the month will be a write-off, worse than the statisticians will have allowed for.

Beyond this month, it is a question of momentum. Official figures from the Department for Communities and Local Government suggest that house prices had plenty going into the worst of the winter, jumping by 1.7% in November and rising by 0.6% over 12 months, the first such increase since mid-2008.

Nothing material has changed in the past couple of months, but estate agents are entitled to be a little more nervous than for a while. The snows will go, but will the buyers be back?

- The continuing fall in borrowing costs means people moving house needed 10.6% of gross income to cover their mortgage interest payments in November, the lowest since mid-1996, the Council of Mortgage Lenders says. The debt burden on first-time buyers has shrunk to its smallest since May 2004.

By David Smith. Times
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January 16 2010

Property the popular home for new wealth

Prime London property is set for a boost as City bankers hunt down investment opportunities for their bonus payments.

Estate agents say the number of applicants for expensive homes in London has increased by a fifth in the past few months and is set to rise further as bonus decisions are formally announced.

Payouts are expected to be significantly higher than last year, although estate agents say many buyers are playing safe and waiting for confirmation of the sum before committing to a deal.

Nevertheless, Knight Frank has reported a 23 per cent increase in applicants in the last quarter.

"Judging from the calls that we started to get as soon as we got back [after Christmas] the bonus buyer is back and will have a positive effect on house prices," says Tim Wright, head of Knight Frank's Kensington office.

Property prices have already rebounded strongly in prime areas, and are even exceeding previous peak levels in some pockets of the markets.

"Not surprisingly, perhaps, in terms of employer, it would seem that JP Morgan and Goldman Sachs lead the way," adds Mr Wright, "although some still do not know exactly how much they will be getting and are therefore not able to give us clarity on exactly what their budget is likely to be."

Also, some buyers may be constrained by the amount of cash they will receive, as banks are likely to pay a greater proportion of bonuses in shares.

Mortgage brokers are gearing up to offer buyers bespoke solutions, including using share options as collateral for loans.

Paul Welch, managing director of Largemortgageloans.com, says private banks tend to be willing to structure mortgages based on equity, although these are done on an individual basis and only for the "right sort of client".

Much of the interest from buyers is coming from people who want to buy a more impressive main residence rather than add another home to their portfolio.

Lindsay Cuthill, head of Savills' Fulham office, reports that buyers looking to exchange a home worth £2m for one with a £3.5m price tag are "quite typical". "Another buyer described himself as not being in the 'big bonus category' but expects to be able to upgrade from £1.2m to £1.75m," he says.

Charles McDowell, a buying agent, has already received a number of "serious approaches" from City buyers. "It would seem that upgrading your own home would be a good way of achieving a capital gain as well as minimising your tax exposure."

However some buyers may be disappointed.

"The problem will be supply," says Mr McDowell. "The year has got off to a slow start in terms of new properties coming to the market".

By:Sharlene Goff and Daniel Thomas . FT
...........................................................................
January 16 2010
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