News

Tottenham Court Road property prices get biggest boost from Crossrail

Ivan Radford — Mon, 18 Mar 2013 16:24:00 GMT

Areas around Crossrail stations in the west, on the other hand, will see a lower price increase.

Adam Challis, Head of Residential Research at Jones Lang LaSalle explains "Some local residential markets will see a greater benefit from Crossrail. For example, the perennial problem with Canary Wharf has been accessibility to Heathrow. Journey times will be cut to 40 minutes and convenience greatly improved for both employment and residential.

"Farringdon will become a key transport connection being only one stop to Kings Cross/ St Pancras International. Given that it is not even on the Central line at the moment, Crossrail will significantly increase its relevance. "Tottenham Court Road is the strongest performer in our research. This location is undergoing major regeneration made viable by Crossrail, with public realm improvements and new office and residential development. The East end of Oxford Street should re-join the area as a destination retail location.

"Almacantar's plans for Centre Point, if approved, will generate new residential price records in the local market. This is all happening on the edge of the West End, the most expensive real estate market in the world."

The research suggests that Crossrail will contribute to residential price increases of between 6% and 19% above already strong house price inflation for new build property along the route.

Jones Lang LaSalle expects price growth of nearly 30% on average for all Central London residential development by 2018.

Stamford: The best place to live in Britain?

Ivan Radford — Mon, 18 Mar 2013 16:22:00 GMT

The comprehensive and up-to-date two-part guide, published in The Sunday Times from Sunday 17^th March, takes a wide range of elements into account including transport links, quality of schools, natural beauty, low crime rate, property prices, cultural life and unemployment figures. Each area is also assessed on its own individual assets, whether it is a local festival, fascinating architecture or proximity to an airport.

The guide lists the 101 best places to live. Coming second to Stamford is Kendal in Cumbria, followed by Wye and Thornbury (near Bristol).

Sunday Times Associate Editor and author of the paper’s “Beyond the Brochure” property column Eleanor Mills comments: “Scampering around Britain for my column I find there are particular bits of our crowded island which always retain a particular attraction for people. We have built on this basic information to create a definitive guide. The Sunday Times Best Places to Live will prove invaluable for anyone starting a family, retiring, or simply considering a move.”

The second part of the The Sunday Times Best Places to Live will run on Sunday 24^th March. As well as an overall national winner the guide will announce the top places to live in nine regions around the country.

Additionally, The Times will be reviewing locations based on a range of categories starting on Monday 18^th, including best town, village, coolest place and the top location to have a second home.

Momentum grows as UK property market enters spring

Ivan Radford — Mon, 18 Mar 2013 16:21:00 GMT

Miles Shipside, Rightmove director and housing market analyst comments: “In today’s turbulent world where economic crises seem more likely to re-appear than disappear, any market upturn will take longer to build home-mover confidence to the point that it starts to feed through to actual transactions. Even those who truly believe that the market has turned a corner may be unable to do anything about it due to lenders’ cautious risk profiling, a significant factor limiting the speed and strength of the recovery. However, with new sellers asking more than ever before as we enter the traditionally busy spring market and an expectation among home-movers of price stability or growth, there is now a bedrock upon which confidence and momentum appear to be building.”

The average price of a property coming to market is at a new March high of £239,710. The previous peak achieved at this time of year was set in 2008, just six months before the collapse of Lehman Brothers in September of that year. This new March record comes at a time when several of Rightmove’s indicators provide evidence of growing momentum in the market that should deliver an increase in transaction numbers this year.

Rightmove’s latest Consumer Confidence Survey of more than 40,000 respondents shows that 60% expect prices to be ‘more or less the same’ in a year’s time and a further 23% believe prices will be higher.

Shipside observes: “Positive sentiment on the future direction of property prices is a vital element in motivating more people to buy including those looking to trade-up. If they feel confident that prices aren’t going to drop, some will take the plunge, while those who are predicting price rises often judge it wise to act sooner rather than later if they perceive delaying will mean they pay more. Whilst outlooks on property prices differ and remain patchy according to location and property type, overall there appears to be an upturn in confidence”.

In spite of a 12% month-on-month increase in new seller numbers, unsold stock per estate agency branch has remained little changed, up from 64 properties last month to 65 this. This suggests an increase in the number of properties being sold and removed from active marketing. This bodes well for transaction numbers in 2013. With March’s average time on the market also falling from 90 days last year to 80 days this, property appears to be finding buyers more quickly.

Shipside adds: “Whilst it is too early in the year to make estimates about full year transaction volumes, agents are reporting more properties being sold subject to contract. However, these prospective buyers still have to complete the potentially treacherous journey through to successful completion. A sense of urgency has previously been sadly lacking, but there’s nothing like a few “Sold” boards appearing on local streets to motivate buyers to make a decision about which they had previously been prevaricating. More limited inventory for sale by agents means less choice for buyers and is usually a forerunner of increased property prices. Some of the price gains made in the first half of the year often fall away in the second half, but this year it is possible that the air of optimism will result in those gains being retained”.

Rightmove research shows that rents are delivering average gross yields of 5.9%. With some remortgage finance available at lowest ever levels, from as little as 2% for a two year fixed rate and 2.7% for a five year fixed rate, there is the possibility of a straight arbitrage of immediate return on money borrowed against your main residence.

Shipside comments: “There are blindingly good returns on the right buy-to-let investment, with the Funding for Lending Scheme giving the possibility of an immediate and enticing profit gap between borrowing costs and available rental returns. With the prospect of capital growth in future years if you buy the right property, you can see why investors are piling in to the rental market – why wouldn’t they when it can offer a much better return than money in the bank?”

There is an opportunity for the Government to continue and build on this housing market momentum with a housing-led confidence-boosting Budget. Though the Government and new build industry NewBuy scheme has been hailed a success by some, further initiatives to encourage building of additional affordable homes, release public land for development, and attract pension fund investment could all boost the construction sector. Stamp duty breaks and other initiatives to help increase the number of first-time buyers and help first-time sellers with limited equity to trade up would also help boost volumes in the wider resale market.

Shipside comments: “A housing market led confidence boosting Budget could help the economy change up a gear. Increases in consumer spending and the positive effect on GDP have historically been linked with a positive housing market. More houses need to be built to meet growing household numbers, and the activity it creates is a great boost to the economy. If new initiatives spur the resale market as well as new build sector, then the Government could generate a welcome feel-good factor that it may judge to be timely with just over two years to the next election.”

Most expensive terraced house sells for £80m

Ivan Radford — Mon, 18 Mar 2013 16:16:00 GMT

The seven-bedroom property stretches across 21,500 square feet and is located opposite Regents Park in London. The building, which recently underwent an extensive overhaul, has been described as “one of the most important private residences in London”, according to The Daily Mail. The four-storey property includes marble halls, a sports complex (with gym and pool), a security system that features automatic number plate recognition, and lighting that can be controlled by an iPad.

The estate was listed on the market last year for £100 million. Property mogul Marcus Cooper snapped it up at a significant discount, but even then, the nine-figure price tag makes it 492 times more expensive than the average home (£162,411 – Land Registry).

For Cooper, it is the latest in a long line of the capital’s finest homes. The 47 year old businessman established a separate company, 1 Cornwall Terrace Limited, just to buy the exclusive property.

“Mr. Cooper is understood to have bought One Cornwall Terrace after seeking advice from estate agency Knight Frank, which yesterday declined to comment on the sale,” reports The Telegraph. “The property was being marketed through Savills estate agents who confirmed the deal but would not give any further details about the transaction.”

The sale is just one of a handful of high-end London real estate transactions, Beachamp Estates told The Daily Mail. Managing Director Gary Hersham commented: “There have been six or seven sales north of £50 million in the past six months and this is at the top end. It is excellent news for the strength of the top-end of the London housing market.”

Cooper would have competed with buyers from around the world to secure the prestigious address, as London’s real estate market continues to go from strength to strength, attracting international investors keen on putting their money into a financial safe haven.

Indeed, the London Assembly warned this week that Mayor Boris Johnson should be careful to reduce the impact of overseas demand upon houses for local residents.

Caroline Pidgeon AM, who proposed the motion, said: “There is a real risk that overseas investment is creating an artificial housing bubble, inflating prices beyond the means of most. It’s vital more Londoners aren’t locked out of the capital, their chances of being able purchase their own homes decreasing year on year as prices are pushed sky high. We need to understand the effect overseas investment is having on the housing market, especially in terms of price, affordable housing and supply of homes for Londoners.”

“This motion isn’t about penalising investment in London, it simply seeks assurance that the Mayor will take a strong look at the impact to ensure it will not damage neighbourhoods or price more residents out of the capital.”

But with many overseas investors avoiding tax and other charges, Cooper’s purchase will reassure some experts: the businessman’s new home will be subject to £12 million stamp duty.

Can’t afford an £80 million home?

Browse our listings of profitable London property investments that won’t break the bank:

http://www.themovechannel.co.uk/property/england/london

Photo credit: Ell brown

Alternative Investments Explained: Property Schemes

admin — Mon, 18 Mar 2013 15:17:00 GMT

This week, property schemes go under the microscope.

Bricks and mortar have a reputation as being the safest form of investment. Alternative products have higher returns but are less reliable. With real estate, you can depend on the returns – and often benefit from capital appreciation as well. But the yields are lower, making it less attractive for speculative investors keen to multiply their stake quickly.

To top it off, the entry costs for property investment are high, requiring large amounts of money to buy into real estate – a fact that effectively reduces the actual yields of the product even further.

That’s where property schemes come in. Forming a bridge between alternative assets and traditional investments, property schemes allow investors to take advantage of the stability of bricks and mortar without having to invest a large stake.

Investments often last for a fixed term of up to, for example, 10 years with a pre-determined exit date. This allows investors to plan for their investment without worrying about the legal processes involved in buying and selling real estate – processes that can take a long time.

Instead, buyers place their money in a company involved in real estate, or (more likely) into a pot of funds from a group of buyers. This is then invested into a property, or a portfolio of properties, on behalf of the buyer. This portfolio than does what real estate does best: generate returns with a steady, reliable efficiency. These returns are unaffected by the usual cost of entry into the property market, boosting yields significantly.

Free from the costs and hassle of managing the assets, investors can then sit back and watch their real estate investment take care of itself.

This ease of investment, combined with the low entry cost and trustworthy nature of the end product, makes property schemes a very attractive alternative investment.

For more information on how to invest in property schemes, visit http://www.alternativemarketplace.co.uk/

Celebrity Homes: Look inside the Queen’s living room

Ivan Radford — Fri, 15 Mar 2013 11:47:00 GMT

Photo credits: Oxford Film and Television / The Daily Mail

Ever wondered what the Queen's living room looks like? Now, thanks to a new documentary, we have the answer.

Our Queen is a documentary designed to give an intimate portrait of the Queen's daily life. The film, which features Prime Minister David Cameron and others, will be broadcast on ITV and give members of the public a chance to poke around Queen Elizabeth's private quarters at Balmoral.

"Well, it's quite informal in that you turn up and the family's doing whatever the family's doing... and there is a little bit of choice about whether you want to go and ride a horse or try and catch a fish or go for a walk," Cameron told director Michael Waldman, who was given unique access to the royal household in their Diamond Jubilee year alongside The Daily Mail.

"There isn't much what you'd call downtime, there's not much chillaxing at Balmoral, they're very active," Cameron added.

"[The sitting room] has the everyday cosiness of a granny's front room," describes The Daily Mail, with family photos, a flowery chair and china ornaments dotted around the room. Newspapers sit on the table, giving the Queen the chance to keep up with the news, while the floor, as expected, has its fair share of dog baskets.

Amid the Balmoral decorations, a cushion, with these words embroidered on it: "It's good to be Queen."

Amen to that, Your Majesty.

Europe “risks falling behind” high-quality investments in Asia and US

Ivan Radford — Fri, 15 Mar 2013 11:25:00 GMT

Europe's cities risk falling behind in the levels of high-quality investment in urban development compared with their North American and Asian peers, the European Public Real Estate Association has warned.

The EPRA's latest report shows that the listed real estate sector - the most efficient generator of jobs, economic growth and innovation in the urban environment - is much smaller and more fragmented in Europe compared to other markets.

Gareth Lewis, Finance Director at EPRA said: "Our research shows that listed real estate companies are leading the way in delivering investment and innovation into the built environment, customer focused practices, sustainable policies and providing long-term stable retirement income for pension plans. But during a time of austerity and slashed government budgets, these advantages are being under-utilised due to the relatively small size of the sector in Europe."

The commercial property industry as a whole directly adds EUR 285 billion to the European Union's economy - more than the automotive and telecommunication industries combined - and provides jobs for over four million people, as well as making up 6% of the investment assets of pension funds and insurers' retirements plans. Yet only 1.8% of the EU's investible commercial real estate is held within the publicly quoted sector compared with 6.7% in North America and 6.1% in Asia.

EPRA's research found that listed property companies are major players in the most substantial, ambitious, capital-intensive and longest-term projects, meeting the accommodation and infrastructure needs of European citizens. Relative to the size of their property portfolios, listed property companies devote two-to-three times as much investment to the development of new buildings and the improvement of existing buildings than the rest of the real estate industry.

Examples include: the Westfield Stratford City development in the UK (25,000 construction jobs, 18,000 permanent jobs, 300 shops, 70 restaurants, three hotels, 17 cinema screens); Unibail's Le Nouveau Beaugrenelle urban regeneration project in Paris (45,000 sqm mix of retail and office space, which has created 1,000 retail jobs); and Alstra's Alte Post development in Hamburg which fully preserved the external façade of an historic building, while adding a six-floor new development for a total of 9,800 sqm of retail and office space.

Listed property companies typically own and manage property portfolios on a substantial scale, with 32 of the Top 50 European shopping centres being in the sector. On average, in Europe, their portfolios each contain EUR 3.27 billion of property, which is 5.5 times greater than the average real estate investor and eight times bigger than the average non-listed real estate fund. The average size of a property held by listed companies within EPRA's European market index is almost 50% larger than the average asset in the database of real estate bench-marker Investment Property Databank and for retail properties this is twice as big.

According to EPRA, the combination of accessibility and transparency allows listed property companies to attract capital from the widest range of investors, whether this is through debt or equity, and this is a critical attribute during difficult times in the economic cycle. Capital raising in the listed property sector is more counter-cyclical than in other real estate vehicles, as company management generally decide when they wish to raise money in the market and shareholders are able to buy or sell their investments at any time. This contrasts with many fund structures where, for example, fund managers were subject to a 'wall of money' at the height of the last real estate market boom and mass redemptions in the subsequent downturn.

Almost a fifth of the 127 closed-ended real estate funds launched in Europe in 2007 have been wound up prematurely. In Germany, a third of open-ended real estate funds, with around EUR 30 billion in assets, are currently either in liquidation or are still closed for redemptions and facing an uncertain future. In contrast, there have been no insolvencies within the FTSE EPRA/NAREIT Developed Europe listed real estate index in the last ten years.

Philip Charls, CEO of EPRA said: "The EPRA report highlights the unique role that listed property companies play in delivering, enhancing and operating the built environment and its important role in driving up standards in the broader property sector. Most significantly, it identifies the huge opportunity that growth in this sector can play in building a stronger Europe and delivering smart, sustainable growth."

What Britons want: a detached family home in the South West

Ivan Radford — Fri, 15 Mar 2013 11:22:00 GMT

Forget marble mansions, Brits want a family home in the South West, according to new research from PrimeLocation.com.

Indeed, an Englishman's home may be his castle, but for most Brits their ideal property is a detached, Victorian house in the South West of England, according to the latest research from property website Primelocation.com.

Primelocation.com surveyed around 3,500 British homeowners to identify the attributes that would make up their ideal home, if money was no object. The results show that British understatement is alive and well, with the majority of Brits selecting a detached house set in a rural village in South West England as their dream property.

To reinforce the point, those surveyed indicated that four to five bedrooms would be the ideal size, even if money was not a limiting factor. The preferred architectural style of the majority of those surveyed was Victorian or Edwardian. A large garden, multi-car garage and walk-in wardrobes would also be must-haves for most Brits to consider the property as ‘prime'.

Lawrence Hall of Primelocation.com, said: "Typical British reserve and understatement shines through in selecting of their ideal property. Forget sprawling mansions or flash penthouses, the quintessential English country house with enough room for a family is what the majority of Brits view as their dream home. A quiet rural retreat is preferred to city life and with numerous chocolate-box villages spread across the South West it's little wonder the majority of Brits would position their ideal home there."

The countryside is far preferred to towns and cities as the dream setting for most Brits' ideal home. And whilst London is the heartland of prime property, only 14% of those surveyed would choose to live in the capital. 25% of Brits would prefer to live in a rural village whilst 22% would choose a larger country town. 17% would like to live on the rural coast while 18% would choose a seaside town. Only 5% of those surveyed chose a large city or town other than London.

The South West was the clear winner location-wise with 30% of Brits surveyed choosing it as their ideal location, whilst 25% prefer the South East. The North East was the least-preferred location with only 1.3% of respondents selecting it as the ideal place for their dream home.

Lawrence Hall, said: "London is home to some of the most expensive prime properties in the world. High-spec townhouses, mansions and apartments attract some of the wealthiest buyers from across the globe. But the bright lights of city-life appear less attractive for the majority of Brits who see their ideal home in a rural idyll 200 miles away."

39% of Brits would chose a detached property for their ideal home while 23% specified a country house as their ideal choice. Farmhouses and barn conversions (both 6.8%) were the next most popular types of property.

Two thirds (66%) of Brits see a large garden as an essential part of the ideal property. Perhaps demonstrating the gender divide among property-dreamers, 49% would want a multi-car garage while 47% say a walk-in wardrobe is a key feature for their dream home.

Brits are in no doubt about what would detract from a property's status as being ‘prime' and what they would not like to see when house-hunting for their ideal property. Problem neighbours were identified as the number one concern, with more than half (57%) of those surveyed stating that anti-social neighbours would be the biggest put-off. And more than a quarter (28%) felt that an unkempt garden would make it far less desirable.

Lawrence Hall, added: "Location, style and features are all key components of what makes up an ideal property. Homeowners should be mindful of what makes a property desirable and the must-have features of a prime property when they come to sell. It would seem that you can't go wrong if you cater to all the members of the family - a large garage for dad, a walk-in wardrobe for mum and a large garden for the kids."

UK housing market is “on the move”

Ivan Radford — Fri, 15 Mar 2013 11:12:00 GMT

The UK's housing market is on the move, according to Home.co.uk's latest research, which shows that UK's supply of property for sale is still shrinking.

Indeed, the trend in property prices is just one measure of the market's wellbeing but a healthy market will also show a rising stock flow.

One metric that illuminates this is the UK Home Market Turnover Indicator which measures the flow-rate of property through the sales market. Home.co.uk has tracked the Home Market Turnover Indicator (HMTI) since 2005 and consequently this measure provides a robust viewpoint on stock flow rate.

The HMTI, currently at 2552 properties per day, is 8.7% down on March last year showing that, overall, the UK property sales market is still shrinking year-on-year. 2007 registered a HMTI high of over 10,000. See the supporting document for a graph.

Given the current state of the property market, this is a key metric to track throughout the year and can provide estate agents, buyers and vendors alike an insight into the fluidity of the local markets and their ability to drive transactions."

In England and Wales the current typical time on market (for unsold property) in March 2013 has fallen by one day to 136 days (median) and is 11 days less than in March 2012. Marketing times have been trending down in recent years but remain considerably longer than during the boom time of when the typical time on market was just 50 days (March 2007).

Taking a closer look at the relative performance of the regional markets, there are wide variations in how long property is spending on the market. It will come as no surprise that Greater London enjoys the shortest time on market (typically under 100 days). By contrast, property stock in the North East moves at a glacial pace with a median time on market of 205 days, over twice as long as the London market. See "Table: Regional Time on Market and Price Performance over Q1" attached as an image.

Doug Shephard, director at Home.co.uk commented: "With the exception of the Yorkshire region, the bottom half of the table clearly highlights the direct relationship between time of market and price performance. Compared to the national average, property in the struggling regions is on the market for an extra 46 days or around 1.5 months.

Established landlords drive up the quality of rental property in London

Ivan Radford — Fri, 15 Mar 2013 10:54:00 GMT

Established landlords are driving up the quality of rental stock in central London, according to the latest report from Savills.

With tenant expectations of quality higher, private landlords are facing competition from the more business-minded larger players with the means and will to improve their stock. By refurbishing properties to a higher contemporary standard, offering more flexible terms and encouraging longer tenancies, traditional family-owned estates and big portfolio investors have made their stock more attractive to tenants.

In central London, relocation agents and corporate tenants are now actively seeking properties that are professionally managed, whether owned by large estates or private individuals as they are providing a quality service. This can help secure lucrative longer tenancies and reduce costly voids for the landlord.

With rising quality comes rising rents: rates for prime London property have increased by 1.3 per cent over the last quarter, although are only marginally up by 0.6 per cent over the year.

"The recent growth was driven by South West and North West London where rents increased 2.0 per cent and 1.5 per cent respectively over the quarter," explains Lucian Cook of Savills Research. "Rents fell in other areas including prime central London where rental values are down 0.3 per cent.

"Over the longer term, the South West and East of London are the only areas where rents are now above the peak levels reached in 2007. These areas offer the least expensive rents at £29 and £32 per sq ft respectively."

Rents in prime central London, the highest in the capital at £62 per sq ft, still lag 3.2 per cent below peak. In the most expensive core central areas, including Knightsbridge, rents are still 6.5 per cent below 2007 levels. In prime central London, flats continue to outperform houses.

In the South East of England, rents rose 1.2 per cent over the year, pushed up by demand from families who intend to relocate but choose to rent before committing to purchasing a home in more affordable locations outside of London.

Looking to become a landlord?

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How to hop ahead of Easter for a springtime sale

Ivan Radford — Thu, 14 Mar 2013 16:01:00 GMT

Supermarket shelves packed with chocolate eggs and thoughts of the impending long school holiday - all sure-fire signs that Easter is approaching.

As many home sellers choose the school break and Bank Holidays to enjoy a family get-away, estate agents Harrison Murray have some advice to ensure there are no missed opportunities when it comes to viewings.

Staying a hop and jump ahead of the Easter bunny is easy.

-      DO inform your agent that you are going away - and above all, leave them a key. There is nothing worse than having to turn away interested viewers in your absence because the agent has no access to your home.

-      DO ensure your home is spotless if you are going away for a few days.

-      DO empty household rubbish bins, make sure all work surfaces are clean and tidy, clear out magazine racks, ensure that draining boards and sinks are clear of washing up and the dishwasher is empty. A couple of strategically-placed air fresheners will ensure a pleasant aroma in your home.

-      DON'T leave any washing hanging over the radiators, dying flowers in a vase or fruit past its best in the bowl. Give your home a general once-over to ensure there is no clutter lying about.

-      Finally, DO make sure your agent has a contact number in case they need to call you about that all important offer!

Harrison Murray director for Cambridgeshire, Charlie Green said: "The Easter break is a great time to recharge your batteries after the winter months - but for those people who are looking to move, it presents a wonderful opportunity to go house hunting.

"If your home is for sale and you are planning a few days away over Easter, it is certainly worth doing what we have suggested before you leave."

UK house price rises push up from south

Ivan Radford — Thu, 14 Mar 2013 11:39:00 GMT

Asking prices for UK property increased 0.6 per cent in February 2013 compared to January, according to Home.co.uk, with price rises being pushed up from the south of the country.

Greater London continues to outperform the rest of the UK, according to the site's latest index, with a month-on-month price rise of 1.1%. The capital's adjacent regions also continue to record price growth with the South East up 0.5% and East Anglia up 0.8% on last month. At the other end of the performance scale, average asking prices in the North West, North East, Wales and Scotland remained frozen but not falling.

But the Spring market boost is only translating into price gains in the Southern regions. Whilst the Northern regions are indeed showing evidence of price stabilisation, it is London and its adjacent regions that are pushing the national average asking price up 2.9% since a year ago.

"This positive price trend looks set to continue into 2013," predicts the report, "supported by falling marketing times: welcome news to vendors across the country, but especially so in the South. "

The combination of interest from home movers with equity, foreign buyers and landlords looking for investment opportunities has created strong demand for property in and around the vibrant economy of Greater London. Consequently, the region continues to surge ahead of the UK mark to with prices up 1.1% on last month and 6.7% over the last 12 months. Surrounding regions also continue to attract considerable price growth, with the South East up 0.5% and East Anglia up 0.8% on last month.

By way of contrast to the South, the most Northerly regions (NW & NE), Scotland and Wales are still struggling and prices remain under pressure. Whilst prices did not fall, the average prices in the North West were identical to last month and the other regions struggled to record a rise in prices above 0.2%. The Midlands and Yorkshire markets are beginning to look healthier with monthly rises of between 0.5% and 0.6% respectively.

Supply of sales properties to market is seriously down across the UK (-10.6% year-onyear). All English regions, Scotland and Wales are affected with the North East and Greater London suffering most (drops of 28% and 19% respectively comparing Feb 2013 to Feb 2012). On the upside, restricted supply serves to support prices. A total of 51,336 properties across the country were reduced in price in February 2013 which is 19% fewer than in February 2012.

The average Time on Market (for unsold property) in England and Wales has fallen since last month in line with seasonal expectations and is now 11 days less than in March 2012.

There is a direct relationship between a region's price performance and the time on market. For example, average time on market in London is 151 days compared to 332 in the North East.

Doug Shephard, Director of Home.co.uk, comments: "London continues to race ahead of the market with price rises of more than twice the rate of the national average. Government stimulus money appears to be only affecting the capital and, albeit to a lesser extent, the surrounding regions. Meanwhile austerity measures are making the housing market in the far North stagnate. Whilst it is welcome news that prices in these regions did not fall further last month, the issues of affordability and low consumer confidence remain, undoubtedly keeping prices in check over the comings months.

"Clearly a lot needs to change to rectify the North-South economic imbalance. It would appear far from fair that the North must suffer the brunt of austerity measures whilst Greater London and its commuter belt enjoys the benefits of government support for the financial sector. "

Currency Watch: Sterling weaker against most currencies compared to last year

Ivan Radford — Thu, 14 Mar 2013 11:32:00 GMT

Sterling is weaker against most currencies compared to 12 months ago.

A pound will today buy €1.15, $1.56(USD) and $11.74(HKD) compared to €1.20, $1.59(USD) and $12.30(HKD) a year ago, according to Currencies.co.uk. This can make it hundreds, or even thousands, of pounds more expensive for holiday makers, businesses or investors looking to buy property overseas.

Indeed, with the exception of the Icelandic Krona and the Yen, which has been deliberately devalued by the Japanese government, the pound is now weaker against all of these currencies than this time last year or in the summer of 2012.

Until recently, British buyers benefitted from the Eurozone crisis, which made property and vacations in Spain, France, Greece and Italy relatively cheaper. But buying £50,000 of Euros today will return €6350 less than it would have around the time of the Olympics.

People that want to take a late season skiing trip to countries such as Switzerland or Sweden won't fare much better, while a similar situation faces those visiting or investing in the USA, with the affordability now depending more heavily on low house prices.

Indeed, the American property market is showing signs of recovery but potential holiday homes in a number of areas are still relatively cheap compared to pre-Credit Crunch prices. However, a £50,000 initial investment will today only buy $78,250 compared to $81,100 last summer.

Stephen Hughes, director of Currencies.co.uk commented: "Economic uncertainty, the downgrading of our credit rating and the imminent threat of an unprecedented triple dip recession have all contributed to a steep decline in the value of Sterling against most other major currencies in recent months. This trend may continue into the second half of 2013 with very few signs of a sustained period of recovery coming out of the UK."

Buying property overseas?

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UK “hasn’t heard the last of Mansion Tax”, say Cluttons

Ivan Radford — Thu, 14 Mar 2013 11:11:00 GMT

The UK "hasn't heard the last of the Mansion Tax", according to Cluttons, despite Labour's defeat in the House of Commons this week.

"London's 'accidental millionaires' have been given a reprieve for now but the tax could well form part of manifestos at the next election," said Sue Foxley, head of research at Cluttons.

"Headlines inevitably focus on the super prime properties valued in the tens of millions, but over 40% of the London homes which sold for over £2 million in 2012 were in the £2-3 million bracket," she adds.

"In reality, such properties in Central London look very little like most peoples' idea of a mansion, encompassing three bedroom terraces houses in many areas. In fact according to the Land Registry the average sale price of a terraced house in the Central London prime core was £3.44 million at the end of 2012.

"Such properties are home to large numbers of ‘accidental millionaires', who find themselves in so called ‘mansions' by simply staying put in their long term family homes. They are typically home to high value workers in the capital in the finance and business services sector, those very areas which have helped underpin the economy of London and indeed that of the UK during the recent years of economic stagnation.

"It is our view that the relatively limited funding that might be raised from crude instruments such as a Mansion Tax, in whatever form, are trumped by the damage caused to London's standing as a place to do business. Transparency and consistency is regularly trumpeted as a key driver of domestic and overseas investment in the UK, but a growing penchant for tinkering with tax regimes undermines the capital's credibility and appeal. The concern is of course: what next? "

Richard Barber, partner at Prime Central London estate agency, W.A.Ellis, agrees: "We do not support a mansion tax and believe there is no structure in place to implement it.

"Whilst it's deemed that this would be a tax on the international super rich who purchase expensive property in prime Central London, a mansion tax would also affect the asset rich, income poor British owner-occupier. It's a double taxation on buyers who have already paid SDLT on their property, and will have to pay CGT and possibly IHT when the property is sold. Politicians also need to be wary of closing the door on foreign wealth in the capital, as the majority of these purchasers come over for employment reasons and to educate their children, therefore contributing to the wider economy.

"We think the Government should instead look at restructuring council tax bands - including a moderate increase on the upper end of the market - as we believe that this would be a fair and workable solution."

Are you for or against Mansion Tax?

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Multi-million pound fund to get stalled sites back on track

Ivan Radford — Thu, 14 Mar 2013 09:57:00 GMT

Housing Minister Mark Prisk has launched a £225 million fund to help unlock large-scale, locally led developments and get Britain building.

The minister said that he was using the fund to help unlock stalled sites across the country, and called on councils and developers with other locally supported large-scale sites to come forward and tap into the government help available to get workers on sites and thousands of much-needed homes built.

The £225 million pot is part of the wider £474 million Local Infrastructure Fund, designed to stimulate economic development and get sites moving.

As part of this, the minister announced a £24.7 million loan to Reading University to help unlock a large-scale site in Wokingham near Reading.

The Wokingham site, planned with the local community, will deliver 2,500 new homes, as well as 2 primary schools, a neighbourhood centre, shops, park and ride facilities and a new specialist Science and Research Park.

The investment will be used to build a new access road and bridge to link the new development to Wokingham town centre itself.

Wokingham is the fourth large-scale site that the government has helped to accelerate since August last year. Ministers have also helped schemes at Eastern Quarry in Kent, a 22,000 home site which received help and support to progress the project, and Cranbrook near Exeter, which received £20 million to deliver 1,500 jobs, new rail links to London and 6,300 homes.

Housing Minister Mark Prisk said: "I'm delighted that today's £25 million investment in the future of Wokingham will help tackle the transport troubles that are stopping the building of 2,500 homes in its tracks. But with dozens of similar stalled sites across the country, I'm determined to do more.

"That's why today, I'm calling on councils and developers with large-scale, locally supported stalled developments to come forward and make the most of the government help available to get builders back to work and the homes we need built. With funding on offer in the form of recoverable loans, this is a win-win for the taxpayer - delivering thousands of homes and getting more bang for our buck."

Colin Molton, Homes and Communities Agency Executive Director for the South and South West, said: "Wokingham needs more homes to support the growth planned for the Borough, but this can't happen without the investment in the Eastern Relief Road that the minister has announced today.

"This will play a vital part in supporting growth in a way that helps develop sustainable communities by providing a better road network and hundreds of new jobs and 2,500 new homes to Wokingham.

"We have worked hard to bring this complex agreement together in a very tight timeframe. Now the hard work really starts and we will be focused on ensuring that everything is in place so that work on building the new road can begin soon."

The fund adds to the wide range of measures introduced since 2010 to get Britain building, help aspiring homeowners onto the property ladder and make full use of the country's housing stock.

Happy Birthday NewBuy: More than 3,700 reservations and plea for extension

Ivan Radford — Wed, 13 Mar 2013 15:27:00 GMT

Happy birthday to NewBuy, which turned one year old yesterday. For its 12-month anniversary, the UK scheme received almost 4,000 reservations - and a plea for the government to extend the operation.

Stewart Baseley, chief executive of the Home Builders Federation (HBF), knew there needed to be some kind of help offered to potential homebuyers with a dearth of 95% mortgages last year. One year on from NewBuy's launch, he told whathouse.co.uk about his delight over the momentum it has gained and his budget submission requesting an extension of two years for the scheme.

Baseley says: "When we started a year ago we had a handful of lenders and a handful of developers - today we have twice as many lenders and 79 builders. The take up has been fantastic as the scheme has gone on. There has been a dramatic increase in sales in the first 10 to 12 weeks of this year and I am very pleased with the direction that it is heading. I'm very pleased that builders are taking part and I'm very pleased that lenders have reduced their rates."

The latest figures released today by HBF show a weekly average of 130 reservations, almost double last year's average, resulting in a current cumulative total of more than 3,700 reservations. The doubling of reservations under NewBuy this year has come in partnership with a general lowering of mortgage rates - triggered by the Funding for Lending Scheme - making homeownership more affordable.

Baseley says: "With these kind of results one year in, we have just written our budget submission and have asked for the scheme to be extended for another two years. The figures are showing there is a real market for it and at present I think it is difficult to see 95% mortgages returning due to the restrictions being put on banks. Three years, the current planned length of the NewBuy scheme, may seem like a long time but in the housebuilding industry it isn't at all. If developers are investing in land now it could be 2015, 2016 or 2017 before those homes are on the market. Extending Newbuy is one of the things we can do to invest in the housebuilding industry and to help first-time and second-time buyers onto the property ladder."

HBF's latest Housing Pipeline report, released today, reveals that local authorities granted approvals for 45,041 new homes across England in Q4 of last year, up 62% year on year and 33% up on the previous quarter. It is the highest quarterly number granted since Q1 2008 and - while still short of the 60,000 required - is significant as it points to potential improvement emerging since the introduction of the National Planning Policy Framework last March.

Choosing the right home insurance policy

admin — Wed, 13 Mar 2013 15:00:00 GMT

Photo credit: Mammaoca2008 (Flickr)

Home Insurance is much more than just a vague buildings and contents plan; it can be a catch all term for a comprehensive personal insurance policy. This means that choosing the right policy can be a bit more difficult as one size no longer fits all.

In the past home insurance was a much more generic term for Buildings and Contents Insurance. The intricacies of life then were much simpler with most houses consisting of very similar goods and products - TVs, videos, stereos etc. Now though we have a wealth of personal portable gadgetry and a raft of consumer electronics meaning that one household can differ dramatically from the next.

Insurance firms like endsleigh have adapted to meet the newfound need for tailored insurance policies and as much as we still use terms like buildings insurance and contents insurance, the intricacies of their details are much less stereotypical. This applies particularly to contents insurance which has become an extremely malleable term - just look at the range of policies on offer from endsleigh. They cater for students living away from home, those who rent and those who own their own homes as well as many other special interest parties.

If you have a laptop and a mobile phone - as many of us do - you'll live with the fear of them being lost, damaged or stolen. The economic catastrophe of this isn't clear until the worst happens, and the proprietor of these belongings is left with a huge hole in their finances.

Home insurance has adapted to cover these new-fangled needs and allows the policy holder to either ring-fence their most valuable belongings or insure the contents of the house as a whole. You can also insure things like the loss of your keys, garden items and a host of other eventualities. Treat home insurance as guarding your most prized assets and enjoy the peace of mind that this can deliver.

Chancellor under pressure to help boost UK property market

Ivan Radford — Wed, 13 Mar 2013 13:59:00 GMT

The Chancellor of the Exchequer George Osbourne is facing calls from both builders and buyers to boost the UK property market ahead of next week's Budget.

Construction output has significantly reduced 7.9% in the last 12 months, according to the latest figures, largely fuelled by continued stagnation in the housebuilding sector. With fears mounting that it could contract for a second consecutive quarter, getting Britain building will be a top priority, say SmartNewHomes.

Steven Lees, Director, comments: "Construction has a significant part to play in the health of the economy, creating and sustaining jobs within communities. So far, the Government's high profile new schemes and initiatives appear to have lacked the substance needed to bring about a housebuilding revival comparable to the post World War II era. With less than half of the 232,000 new homes needed built last year, we need to see local councils acting fast to ensure new homes are actually delivered in the next one to two years.

"The Government's shared equity NewBuy scheme has successfully helped tackle the dearth of higher loan to value mortgages for first time buyers, with nearly 4,000 signing up since its launch in March last year. More recently, Funding for Lending can be credited with helping to introduce a raft of new, competitive mortgage products but with the Government expected to place more emphasis on helping small businesses access finance, we could see these deals dry up for homeowners. We hope to see the Government reaffirm its commitment to NewBuy over the long term."

At the same time, the Chancellor is under pressure to reform the country's Capital Gains Tax, which is impacting on property investors. Robert Bryant-Pearson, CEO of Allied Surveyors and Valuers, comments on the "outdated" and "unfair" system:

"CGT as we know it was introduced in 1965 by Jim Callaghan to capture short-term capital gains because of the effect of double digit inflation in the 1970's and early 80's. Geoffrey Howe introduced indexation and set the Base Date from which gains would be calculated as March 1982.

"Since then, there have been numerous tinkerings, ‘taper relief' came and went, and now there are a raft of reliefs beyond the main place of residence to include ISA's, gilts and Entrepreneurs' Relief. But the base date has remained unaltered.

"This is an anachronism as gains made over a 30 year period can hardly be described as ‘short term'"

Allied says this is unfair as it impacts on many investors with long held assets and CGT remains a tax on old inflation.

Robert Bryant-Pearson adds: "The size and transfer costs of property assets mean that investors in this asset class are unfairly prejudiced because they do not have the luxury of other asset classes where inexpensive portfolio churning is possible to use CGT annual exemptions (currently £10,600 per person)

"George Osborne should use his budget to seize the opportunity to reset the Base Date for the valuation of long held assets to March 2003 but with a rolling 10 year March Base Date.

"Taking out the ‘old inflation' would be the first step in simplifying CGT. It is crazy to still be harking back to 1982 for comparable information to assess tax liability on the gain from assets held for 31years or more".

Weak British pound encourages returning expats

Ivan Radford — Wed, 13 Mar 2013 13:34:00 GMT

The weak British pound is encouraging expats to return to the UK, according to The Buying Solution.

As well as ongoing interest from overseas buyers investing in the Prime Central London market, the firm is seeing an increase of UK expats repatriating to the Home Counties.

Nick Mead, Associate in the Home Counties at The Buying Solution, explains: "The weakening pound is not only benefitting overseas nationals looking to invest in the UK property market, but those UK nationals repatriating. We're seeing a number of buyers who work in finance and have been posted overseas for a few years returning to Britain and wanting to purchase a family home in the Home Counties. Such people often leave the UK as a couple, renting out their London flat as part of the process, and return married with young children 3-5 years later. They will have been remunerated in the local currency, and as such, benefit from Sterling's weakness. At the same time, the increase in property prices in London means that when they return, they can also cash in on the strengthened London market by selling their property. These buyers - many of whom want to purchase in the Home Counties for schooling - are exceptionally motivated due to the pressure on finding a home for their return."

Rachel Thompson, Associate in the London team, adds: "In London, we continue to see a strong demand from the international buyer, fuelled by the weak pound. Those buying now are benefitting from a devalued currency, low interest rates and, in comparison to some countries, low property taxes. Because of this, to some, property prices are up to 30% cheaper now than they were in 2007/08, despite Prime Central London property prices being 17% higher. Property is a tangible asset that can be held for the long-term, and when the pound strengthens again, overseas investors will benefit from both the likely uplift in the market and the currency."

For more information on currency exchange services, visit our dedicated channel:

http://currency.themovechannel.com/

Neighbours add £19,400 to property’s value

Ivan Radford — Wed, 13 Mar 2013 13:33:00 GMT

Half of the UK may not know the name of the people next door, but good neighbours are very good friends to your house price, according to new research.

Indeed, 88 per cent of estate agents think a well maintained home next door will increase the sale value of a property. Estate agents estimate that well maintained and attractive homes surrounding a property have the potential to increase the sale price by as much as 12 per cent - equal to a staggering £19,4002 at current market value.

However, an unsightly or poorly maintained neighbouring property could reduce the price of a home by an average of 13 per cent. If the house next door has an overgrown garden, broken windows, or a rundown car in the drive it could force down the property's value by an estimated £21,000(2).

Estate agents are virtually unanimous (98 per cent) in their belief that an unsightly or poorly maintained neighbouring property has a negative impact on the price buyers will pay for a home. The number one eyesore next door that drives Down property prices is broken or boarded up windows, followed by rubbish and junk in the front garden. If your neighbours have garish paintwork, an overgrown garden or even dirty windows, this could also wipe thousands off the value of a property.

The five top eyesores that estate agents believe affect the value of a neighbouring property are:

Broken or boarded up windows Rubbish or junk in the front garden or drive Overflowing gutters Unsightly or imposing extensions and DIY Run down vehicles in the front drive

Martin Scott, Head of Churchill home insurance said, "Whilst many householders will recognise that the condition of surrounding properties can influence curb appeal, the study shows that the upkeep of a neighbouring property could affect the sale price of a home by thousands of pounds. Relatively minor issues such as maintaining gardens and keeping external paintwork in good condition could increase property values in the area generally, putting pounds in homeowners' pockets when they come to sell."

London announces plans for new floating village

Ivan Radford — Wed, 13 Mar 2013 12:48:00 GMT

Photo credit: Newham.gov.uk

The Mayor of London, Boris Johnson, has announced new plans for a floating village in city's Royal Docks.

The ambitious project, which will create the UK's largest floating village, is part of the Mayor's on-going drive to transform London's Royal Docks bringing, jobs, commercial space and homes back to the capital's waterways.

Launching an international competition to find developers and London partners to design and deliver the scheme, the Mayor made the announcement as he travelled to MIPIM, the world's premier property conference, where he will be promoting this unique site and other investment opportunities in London.

His plans will see 15 acres of water at the Royal Victoria Dock site, sitting directly under the Emirates Airline, transformed into a thriving community with floating homes, hotels, restaurants and bars. When complete it will be one and half times the size of Green Park and have some of the best transport links in the capital with a new Crossrail station, DLR and the cable car linking it to central London and Canary Wharf.

Although a first for the UK, floating developments are already a popular idea on the continent with successful schemes at ljbury near Amsterdam and Hafen City in Hamburg as well as many others throughout Scandinavia. The Mayor, who inherited over 600 hectares of land as a result of the Localism Act in April 2012, is currently one of the largest owners of public land in London. He is determined to bring more public land forward for development and accelerate the number of homes being built for Londoners. As part of this, the redevelopment of the entire Royal Docks area is one of his key priorities.

His investments in this area have already led to the opening of the Emirates cable car and the Siemens Crystal Centre as well as upcoming developments at Silvertown Quays and Royal Albert Docks.

Throwing down the gauntlet to international and home-grown investors at MIPIM to come up with a spectacular design that will make his vision of London first liquid postcode a reality, the Mayor Boris Johnson said: "This site is unique. It has the potential to become one of the most sought after addresses in the capital while breathing new life back into London's waterways. But it's not alone. Right across London there are incredible investment opportunities that I'm determined to bring to market creating more homes and jobs for Londoners.

My message to the developers gathering at MIPIM is that London is the best place to invest." Newham Mayor Sir Robin Wales said: "London is moving eastwards and the Royal Docks offer an investment opportunity in scale unmatched anywhere in Europe. This exciting development is a pivotal part of their reanimation.

The Royal Docks were designated the capital's first new Enterprise Zone, in recognition of the importance of the area to the future of London's economy. As today's announcement shows, they have the capacity to attract modern sustainable businesses and deliver 21st century growth for the capital. It is essential that the transformation of the area translates into long-term prosperity, growth and jobs.

"The Docks are being transformed into a living, working community of high quality offices, workspace, retail, residential spaces, leisure and entertainment facilities. They will become a vibrant, exciting and fun visitor attraction which will draw people not just from across the capital - but across the country.

This venture will provide a major boost for the local economy and further cement the area's reputation as one of the capital's must-visit places. Investment in the borough encompassing the Olympic Park and Stratford in the north through to Canning Town, Custom House and the Royal Docks in the south, reflects Newham's status as London's regeneration priority for the next 25 years." Visiting MIPIM in southern France to drum up interest in the plethora of opportunities available in the capital, the Mayor will be hosting a series of meetings with potential investors and developers, as well as giving a key note conference address and opening the London Stand.

The Mayor recently launched a new Land Assets Database with details of his land holdings including information about the size and location of individual sites as well as aerial photographs. This is the first time these sites, and those of the GLA functional bodies, have been made publically available in this way, making it far easier for anyone with an interest in this land to find out more.

Demand for luxury property set to climb in 2013

Ivan Radford — Tue, 12 Mar 2013 13:46:00 GMT

Demand for luxury property is set to climb in 2013, predicts new luxury property portal Finest Global.

The global economic situation may be grim, but high-end real estate continues to buck the trend with investor interest and prices both on the up.

Analysing data from Lead Galaxy's network of portals, including TheMoveChannel.com, Finest Global found that enquiries for prestige property increased by 65 per cent in January 2013 compared to December 2012 as wealthy buyers' appetites continues to weather the face of recession.

Indeed, the luxury sector has resisted the economic slump in multiple countries in recent years, continuing to attract investors to prime property markets such New York, London, Miami and the French Riviera. This steady demand, coupled with a steadily reducing inventory, has pushed luxury real estate values to record highs in the world's top 10 property markets, according to Christies International. Conversely, in other markets, such as Spain and Portugal and even Greece, recession has actually helped to make some high-end real estate more affordable.

That trend is going to continue this year, predicts Finest Global. Indeed, luxury property enquiries on the Lead Galaxy network accounted for 12.2pc of all activity in the first two months of 2013 - already higher than the share recorded in the final three months of 2012.

Lead Galaxy Director Dan Johnson comments: "Lead Galaxy is delighted to add Finest Global to our network of portals. Even during times of recession, luxury real estate retains its appeal for buyers. With interest in prime property already accounting for a consistent share of traffic across our sites, the newly-launched Finest Global is a streamlined portal specifically tailored to meet that demand.

"Since the global financial crisis, wealthy investors have changed their priorities: size and price are no longer the concern, but quality and location. If a luxury property can offer the buyer the prestige lifestyle they desire, they are prepared to purchase regardless of the wider economic climate. Finest Global therefore offers only the best properties on the market in the most exclusive locations.

"With Lead Galaxy's experience and worldwide network of agents and developers, Finest Global adds an elite space where investors can view only the properties they want, enhancing their buying experience and creating a more targeted lead generation service for our partners."

For more information on luxury real estate, visit http://www.finestglobal.com/ or contact us on 0207 952 7652.

Note to Editors

Finest Global is operated by lead generation company Lead Galaxy, the largest online network of overseas property portals. Lead Galaxy's portals received a total of over 7 million visitors from 221 countries in the last 12 months.

The website address is http://www.finestglobal.com/ and the office address is 24 Jack's Place, Shoreditch, London, E1 6NN.

Investments Explained: How to keep your feet on the ground when investing in land

admin — Tue, 12 Mar 2013 13:41:00 GMT

"Buy land, they're not making it anymore", Mark Twain once famously said.

He was right, but investing in land is a field of potential risks. TheMoveChannel.com gives some tips on how to navigate your way through.

A large portion of land investments involve plots of land that are ripe for property development. These building plots are often located in an area where new development is required, perhaps due to growing populations or other reasons, but do not yet have planning permission. Land with planning permission is worth significantly more, which means that buyers can then sell on the plot to developers at a large profit - and with a finite supply around the world, the odds on planning permission being obtained are arguably fair.

But it is not always that straight-forward. Land with planning permission is already likely to be owned by developers, which lowers the chances of being able to sell on the land. Sometimes, the land is not even likely to obtain such permission: it is just a piece of field that has been divided up by a land agent to sell on to investors at a marked-up value.

With a lack of regulation from the Financial Services Authority, land investments are hard to police, meaning that buyers have to be especially cautious - as always in investments - of potential scams.

That's not to say a patch in a field is necessarily a bad thing to own: farmland, for example, has a raft of possibilities, from hiring or selling it onto a farmer to developing your own farm on the agricultural property.

Vineyards for sale are an equally worthwhile investment, with returns able to be generated through use of the land and its produce.

Land investments, then, depend on the type of land as to how reliable they can be. The FSA can only regular "collective investment schemes," when sellers also offer to manage the land and secure planning permission. Outside of collective investment, by notifying the FSA of any land deals carried out, buyers can help the authority can monitor activity and warn investors of anything dubious.

Combined with your own caution and research, land investment can still be a valuable investment - you just need to keep your feet on the ground.

For more information on property investment, visit http://investment.themovechannel.com

POLL: Do you know your neighbour?

Ivan Radford — Tue, 12 Mar 2013 12:38:00 GMT

Only one in three Brits bothers introducing themselves to their neighbours when moving into a new home, according to new research.

As many as one in four of the 3,000 adults who took part in the survey said they were ‘simply too busy' to make friends, while 18% never see their neighbours to say ‘hello'. Indeed, more than half of those surveyed don't know their neighbours, with one in four having no idea what their names are.

Quipol

Good neighbours? Only 1 in 3 Brits introduce themselves when they move in

Ivan Radford — Tue, 12 Mar 2013 12:23:00 GMT

Only one in three Brits bothers introducing themselves to their neighbours when moving into a new home, according to new research.

A large percentage of us are ‘too busy' to make ourselves known to those who live nearest to us, while others fear they will ‘have nothing in common, a study found. It also emerged many of us treat our neighbours like ‘caretakers' - calling on them only when we need something. Indeed, just one in five only know their neighbours because they play ‘pass the parcel' - taking in packages for them whilst they are out.

Other commons requests include taking bins out, keeping an eye on the house while you're away or watering plants.

The research was commissioned by The Big Lunch - a Lottery funded initiative encouraging neighbours to share a few hours of food, friendship and fun on Sunday 2 June 2013.

Co-Founder Sir Tim Smit (CORR) said: "There was a time when everyone was very friendly with the people living next door.

"But as time has gone on, this seems to be becoming rarer, and it's a shame to see that there are many people who haven't got the time or are too nervous to get to know their neighbours.

"If you get to know your neighbours, not only does it create a happier, safer environment to live in, but you will probably find they are happy to help you out with your pets or water your plants when you go on holiday.

"You never know, you might even end up with a new best friend, simply from knocking on your neighbour's door to say hello."

However, over half of us who have knocked on a neighbour's door have sparked a relationship which has borne fruit in the shape of forming a new friendship, being helped out of a sticky situation - or even starting a new hobby.

Furthermore, the study found 46% admitted they want to get to know their neighbours better before asking them to keep an eye on their home, garden or pets when they go away.

20% need to live somewhere for a while before they feel ready to meet the rest of the neighbourhood - taking an average of seven months before saying hello for the first time.

And almost two thirds of Brits think they are more likely to get to know their neighbours if they are around the same age.

Another 72% also think you are most likely to have some kind of relationship with your neighbours if you both have children around the same ages. Over a third of people associate chatting across the garden fence with older generations despite the under 30s being cited as the most likely to talk to their neighbours.

Bringing generations together and giving the area a better reputation were other reasons for wanting more community spirit.

Author and behavioural expert Judi James, said: "It's staggering over half of us don't know our neighbours, especially when we live in an era of crowded isolation, where we are often communicating with people via e-mail and text, at the same time as suffering feelings of loneliness.

"This research shows that the benefits of making bonds with our neighbours are practical, in terms of heightened security, and emotional.

"When we know our neighbours we can feel safer and happier. Our boundaries expand and our sense of loneliness and isolation shrinks.

"There's no need to feel you're taking a huge plunge when you start to get to know your neighbours. It's the ice-breaker effect that is needed to convert strangers into possible friends or acquaintances".

The results are summed up in this infographic:

Click here to see a bigger version.

Do you know your neighbour?

Vote in our poll below, get in touch via Facebook.com/TheMoveChannel or tweet us @TheMoveChannel

Quipol

Is Mayfair the next big holiday destination?

Ivan Radford — Tue, 12 Mar 2013 11:54:00 GMT

Mayfair is known as a playground for the wealthy.

As an investment, it is better than Manhattan or Paris, with the price of property in Mayfair increasing by an average of 11.75 per cent in the last 5 years, according to Zoopla.

But while one of London's most prestigious neighbourhoods is a prime investment hotspot, Mayfair could be a valuable holiday destination for buyers and their families, according to Kerry Knox from Fine & Country Mayfair.

"While many believe that hedge-funders and professionals are using Mayfair properties as a base for business, more and more families are beginning to purchase their second or third homes," explains Kerry. "Very few are looking to relocate to Mayfair as a primary residence, but it is what Mayfair offers for all ages that keep the interest and increasing prices steady.

"The buyers from abroad are predominantly Middle-Eastern, Russian or Indian. The busiest period for Mayfair property purchasing is usually in the summer, with a quieter period during Ramadan as potential investors return home for the celebrations. Buyers usually come over to London a few weeks before and look at numerous houses ahead of making a decision. Families from the Middle East also tend to spend time in Mayfair throughout the summer as it gets too hot back home.

"They choose to invest in a family base in Mayfair because of the proximity to Hyde Park and Oxford Street, particularly Selfridges. Parents can take their young children to the park while the older children can take a trip to Hamley's, the arcades at the Trocadero or the M&M world. The elderly members of the family can enjoy tea in Harrods, leaving the young adults to party in Mayfair's celebrity jaunts such as Mahiki or Whiskey Mist. It is common for the extended family to also buy in neighbouring areas such as Knightsbridge or Belgravia for a sense of familiarity."

Indeed, there may not be sand and sea but London has other attractions to offer, says Kerry: "The opportunities that come with having a London home in the future can give the children fantastic prospects in their careers by being central to the business world. "

What do you think? Is Mayfair the next big holiday destination?

Browse our listings of London property:

http://www.themovechannel.co.uk/property/england/london/

UK tenants pay almost £1,000 more per year than homeowners

Ivan Radford — Tue, 12 Mar 2013 11:42:00 GMT

UK tenants pay almost £1,000 more per year on a property than homeowners, according to new research from Zoopla.

The property site's analysis of the cost of renting compared to that of servicing a mortgage shows that renting a two-bedroom property costs 14 per cent more per year than an interest-only mortgage - a difference of £987.

Indeed, the current average asking rent for two bedroom apartments in the UK is £669 per month, compared to an average asking price of £140,692. Servicing an interest-only mortgage at 5% would cost £7,035 pa, 14% less than the £8,028 paid by the average tenant for such a property. Using a 90% LTV interest-only mortgage at a typical Best Buy rate of 4.39%. , the premium paid by tenants is even higher. The average mortgage would stand at £126,623 with an interest cost of £463 per month, saving the average owner £2,463 a year (not including the cost of the 10% deposit).

The difficulties faced by first-time buyers in getting a mortgage have pushed up the cost of renting. Buying is now cheaper than renting across 86% of the UK's cities, up from 84% one year ago.

A north-south divide has also emerged in the cost of renting versus buying. Northern cities dominate the list of areas where it is the most cost-effective to buy with nine out of the top ten places where it is cheaper to buy than rent being in the north.

Hull tops the list of the most expensive places to rent compared to buying currently. Tenants there pay an eye-watering £2,855 a year more than owners - a rental premium of 62%. York and Peterborough complete the top three list of places where buying beats renting hands down.

Southern towns feature much more prominently in the list of areas where it is cheaper to rent than buy. Swansea tops the list of places where renting is more cost-effective than owning. On average, owners in the Welsh seaside town pay £1,169 per year more than tenants (a rental discount of 13%). Bournemouth, Stockport, Dundee, Edinburgh, Plymouth and Huddersfield are the only other places in the UK where renting is cheaper than buying currently.

Despite high property values in London - where buyers have to fork out £570,760 for an average two-bedroom property - owning is still 2% more cost-effective than renting, with owners £682 a year better off than renters.

Lawrence Hall of Zoopla.co.uk, said: "As a general rule it is much more cost-effective to own a property than rent it. This is particularly true in the north, where a big gap has opened up between the cost of renting and owning. Would-be buyers in the north have found it harder to get a mortgage, which has forced more of them into the rental sector. This has had the dual effect of pushing up rents and keeping a lid on property values, making owing a great option, provided you can get a mortgage."

Want to save £1,000 a year?

Browse our listings of UK property.

New world cities offer business cost effective real estate solutions

Ivan Radford — Tue, 12 Mar 2013 11:22:00 GMT

Hong Kong is the most expensive world class city in which to locate a business, according to new research from Savills, with London in second place and New York a close third. The total real estate cost of setting up business in all three cities is now almost three times that in the most competitively priced world class capitals, Shanghai and Mumbai.

As a result, Sydney now stands out as "especially good value" and looks set to take advantage of expanding Pacific Rim investment, Savillls has said.

Previewing its latest World Cities Review which will be published on March 20, Savills has ranked the top ten world class cities using a measure of competitiveness based on the total cost of real estate space, both residential and commercial, to accommodate core financial and creative sector business teams. The analysis includes headline rents and all associated taxes and charges which are often overlooked and can add as much as 53 per cent to the base office rental cost.

"In the intensely competitive global market for top talent, the cost, quality and desirability of a city lifestyle is an important unit of currency," says Yolande Barnes, director of Savills world research.

"Business location choices sometimes have as much to do with where the CEO wants to live as economic considerations, but the cost of residential and commercial accommodation for an international business team can have a significant impact on the bottom line. Our analysis shows the importance of looking beyond headline rents, or assuming that commercial and residential rents work in tandem.

"A location's competitive pricing is by no means the only part played in its success - quality of life and business competitiveness will be key factors too - but the whole cost sum, and particularly the quality of business premises in a location can have an important impact on the human capital that is such a key part of the knowledge economy.

"Shanghai, Sydney and Singapore all have among the cheapest total costs of the ten world cities studied but each offers different competitive and business environments. Given their location within or close to the new world centres of wealth generation, they should be well-placed for inward investment from both financial and creative sector businesses."

Looking forward, Sydney now stands out as offering particularly good value, though it has shown the greatest five year growth - with total accommodation costs rising by around 14% per cent. The country's new Significant Investment Visa is attracting a significant number of inquiries from Asia, both for residential and commercial investment opportunities, with budgets ranging from AUD5 million to AUD300 million.

The main obstacle to Sydney's growth as a world city has been the restrictions on foreign purchasers buying homes. This new visa pathway for migrant investors, requiring the applicant to invest AUD$5 million into complying investments for a minimum of four years before being eligible to apply for a permanent visa, may change this. Its purpose is to attract investors and may well mean that Sydney's real estate values outperform many other world cities over coming years.

Overall, the growth in total costs since 2008 has been variable. Total real estate costs in most countries have remained roughly similar since the North Atlantic debt crisis struck, although the costs of financial company premises have fallen more. By contrast, creative businesses in Mumbai and New York have faced strong price growth of over 20 per cent, having grown from lower bases on the back of strong economies, while Singapore & Tokyo are as much as 20% cheaper than they were in 2008.

The relative ‘cost freeze' in rents and associated costs is changed by currency fluctuations (not shown) which have served to make some cities, such as Sydney for example, look more expensive to Euro and Sterling denominated businesses. Although static real estate costs might be expected in "old world" cities affected by recession, it is perhaps surprising in view of the high levels of capital growth seen in "new world" cities. Barnes believes that this is indicative of a "more elastic supply-side response in these locations. It also reflects the extent of the yield contraction in many "new world" cities, where rents have not kept pace with capital values."

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UK property sales hit two-and-a-half year high

Ivan Radford — Tue, 12 Mar 2013 11:02:00 GMT

UK property sales hit their highest level in two and a half years in the three months to February, according to the Royal Institution of Chartered Surveyors.

RICS members sold an average of 16.8 homes across the three months, encouraged by increasing market stability. Indeed, surveyors are optimistic that the trend will continue, with 8 per cent more respondents predicting sales will keep rising in the next three months.

Moving on to prices, chartered surveyors continued to report a flat trend as a net balance of six percent more respondents claimed that prices had dipped. While in negative territory, prices have now remained relatively stable since the autumn.

Meanwhile, demand for property remained steady across the country as buyers in many parts continued to consider purchasing a new home. It would appear that the increase in mortgage finance availability from the government's Funding for Lending scheme may be slowly encouraging would-be buyers to test the market.

In tandem with this, the amount of homes coming onto the market was stable last month. A net balance of one percent more surveyors reported rises in new instructions. Even so, the number of properties available remain at historically low levels.

Looking ahead, chartered surveyors expect prices continue to stabilise over the coming three months as confidence gradually returns to the nation's market. Beyond this, there is a growing suspicion that prices will begin to edge upwards at a headline level with 12 months price expectations indicator climbing to its best level since the series was started in February 2010.

Peter Bolton King, RICS Global Residential Director, commented: "It's encouraging to see that the housing market now appears to be picking-up across most parts of the UK despite on-going concerns about the health of the economy. This may, in part, be down to the growing availability of mortgage finance through schemes such as Funding for Lending. However even with activity running at its best level since the middle of 2010, it is still well down on its pre-crisis norm."

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Sell My Property Tips: How to prepare your home for the spring rush

admin — Mon, 11 Mar 2013 14:33:00 GMT

If you want to sell your house fast, then spring is the time to do it: the market is at its busiest during the spring bounce, with buyers turning out to look for properties in the warm post-winter weather. But with lots of buyers come lots of sellers, as the market responds to the increased demand. Spring may be your best shot at selling, but it's also the time when you face the most competition.

So it's crucial to get your house at its best to take advantage of the spring bounce - and the way to do that is update your listing.

Here are Sell My Property's tips to preparing your house for the spring rush:

Say it with flowers

Spring is the time when flowers appear outside, but that doesn't mean you can't have them inside as well. Place freshly cut flowers, such as daffodils or something else seasonal, around the property to create a warm, positive vibe - yellow is a good colour - and then take new photos of your property for your online listing. Once you have an enquiry and arranged a viewing, get the flowers out again to seal the deal.

Wash the windows

With the skies outside getting brighter, make sure your house benefits from the improving light. Clean windows and doors will let more sun into your living room or bedroom, making it easier for buyers to imagine your home as a holiday destination - nobody likes the idea of buying overseas property in a grey, miserable hole.

Clean the garden

Once you've done your spring cleaning inside, make sure you do the outside too. A tidy garden will improve any outdoors photos that you take, while simultaneously ensuring that an in-person buyer's first impression of the property is as good as it gets.

Think light colours

Just like the flowers, bright, positive colours are an effective addition to your home's interior decor. Neutral, white paint on the walls or something similar makes your rooms seem much bigger, while also optimising the impact from those sparkling windows.

Look up the competition

It's not just about updating your photos. With competition increasing from other sellers on the market, online property portals make it easier to check out your rivals. View their listings and see what they have done to refresh their property - most importantly, whether they've changed the price. Then adjust yours accordingly.

Be flexible

Buyers are looking at a lot of houses at this time of year, so be prepared to be flexible: the right price can make you stand out from the crowd, but being open to negotiation separates the attention-grabbers from the deal-closers.

For expert advice on how to sell your home and information on listing your property online, visit http://www.sellmyproperty.org/

UK retail investment will “remain robust”

Ivan Radford — Mon, 11 Mar 2013 11:34:00 GMT

UK retail investment activity will "remain robust" this year despite the structural changes being brought about by the internet and the sluggish economy, according Knight Frank.

The firm's latest report shows that Central London and much of the wider south east had a very good 2012 on the back of a unique set of events which brought a global focus to the capital, where a seemingly endless queue of domestic and international retailers continue to open stores. Elsewhere, unprofitable shops continue to close and a number of operators remain under threat from tough trading conditions and high levels of debt.

Knight Frank research indicates that recent failures of HMV, Jessops, Blockbuster and Republic will push national vacancy rates up and put further downward pressure on rental values. However, we are seeing renewed interest and aggressive bidding for the best stores within these portfolios. We expect to see further polarisation of both high streets and shopping centres between the regionally dominant and sub-prime locations.

In the investment market, investors have continued to target prime locations with solid tenant line-ups and areas with under-supply. This year has got off to a robust start in the shopping centre investment market, with numerous exchanges and likely completions in the coming weeks. Investor appetite is expected to remain robust for prime shopping centres and leisure, while sentiment for good secondary stock with asset management opportunities is improving.

Bruce Nutman, partner, head of retail investment at Knight Frank said; "Despite the continued problems on the high street, retail and leisure is currently an actively sought product by investors. Market pricing allows investors to choose their risk profile and we are noticing a slightly increased availability of debt. We expect 2013 to be an active trading year within the shopping centre sector and above 2012 levels".

Andrew McGregor, partner, head of Leisure and out of town at Knight Frank continued; "The purchase of standing investment stock had been the domain of the UK Funds / institutions for a number of years, but the latter part of 2012, and into 2013 has seen a return of the REITS. We expect this to continue into 2013. Most of the REITS, given their development exposure, have a pressing need to generate safe and secure income to prop up dividend payments to shareholders.

Whether income in this sector can be regarded as "safe and secure" is debatable, but as ever, it all depends upon good stock picking. The high profile tenant failures of Comet, JJB Sports and Peacocks have to some extent moved investors down the "risk curve", therefore creating a premium market for the better schemes and conversely, a discount market (or no market) for perceived secondary assets. Hence, whilst an investor may be prepared to take an element of covenant risk, the asset needs to be at a market rent and /or be in the right location to attract alternative tenant demand."

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First time buyer activity hits four year high

Ivan Radford — Mon, 11 Mar 2013 11:32:00 GMT

First time buyer activity hit a four year high last month, according to Connells Survey and Valuation.

The firm's latest report shows that the number of residential valuations they conducted increased by 27 per cent in February 2013 compared to January, while total valuations activity grew by 23 per cent compared to February 2012 - the fifth month in a row of annual growth and a 12-month peak.

John Bagshaw, Corporate Services Director of Connells Survey & Valuation, comments: "The wider economy might not be nurturing bright green shoots quite yet. However, for the housing market things are looking increasingly positive as a growing number of first time buyers feed into overall activity. While more severe weather in January could have delayed some activity in February, sentiment among buyers is improving. If last month's trend continues, spring will certainly have sprung for the valuations market."

First time buyer numbers in February were at a four year high as the number of valuations grew to its highest point in any month since March 2009. New buyers outnumbered those a year ago by 13%, with February seeing the sixth consecutive month of annual growth. Compared to January, February saw 25% more valuations on behalf of first time buyers.

John Bagshaw says: "More affordable mortgage deals are starting to trickle through faster, due to increased competition at higher LTVs. According to Moneyfacts, lenders have introduced more than three hundred new mortgage products aimed at first time buyers since the start of Funding for Lending. Combined with increased traction from deposit schemes like FirstBuy and NewBuy, momentum is building inch-by-inch. However, lending criteria remain tight, and deposits must be easier to bring together if we're to see more sustainable growth in new buyer numbers."

Remortgaging activity in February was up 44% from the same point a year ago, after monthly growth of 33%. This brings remortgaging to just over one quarter of all valuations for the first time since January 2012.

John Bagshaw continues, "Current mortgage holders are the biggest winners from Funding for Lending so far. The greater bulk of new deals emerging due to greater credit availability are aimed at existing homeowners, with sufficient equity to help bolster lenders' balance sheets. Previous months have seen the lowest levels of remortgaging for some time, but looking forwards that seems set to change. The only major obstacle could be high remortgaging fees which need to be weighed against the longer term saving."

Home movers showed a 25% monthly increase in activity, contributing to 16% annual growth. Meanwhile, buy-to-let activity was 26% greater than in February 2012, mostly down to a 24% pick up from January 2013.

John Bagshaw concludes: "Home movers saw continued progress, with a double digit boost in numbers from a year ago. Landlords and homeowners with equity looking to upsize are striking now, while prices are still below their past peaks in many parts of the country. Equally, while there is substantial regional variation, in areas like London equity growth has meant that many are either cashing in or downsizing. Alongside this buy-to-let is making steadier progress, and looks like it's set to do so for the foreseeable future."

February flurry as London property sales increase 11pc

Ivan Radford — Mon, 11 Mar 2013 11:00:00 GMT

February felt a flurry of activity as London property sales increased 11 per cent, according to W.A. Ellis.

The estate agent found a resurgence of activity in the sales market compared to January with instructions on the up as well as transactions.

Richard Barber, partner in residential sales at W.A.Ellis, comments: "February has been dominated by various announcements calling for a mansion tax on homes valued in excess of £2m to fund a revival of the 10p starter rate of tax. There is no real plausible economic justification for such a move. Not only would it be costly to administer given the potential for valuation disputes, but it would also be unfair on 'asset rich, cash poor' homeowners.

"In spite of this, the upper end of the sales market has seen a remarkable resurgence in activity. We have received some exceptional new instructions, including a penthouse in Upper Belgrave Street for £7,250,000, and another in Belgravia Mansions for £5,750,000. Other notable examples of activity in our market include an exchange of contracts on a house in Clabon Mews for £5,250,000, and a substantial family house in South Kensington which went under offer close to the guide price of £5,000,000. As well as an increase in instructions, sales transactions have risen by 11% from January to February in our core market.

"As we head into spring, we are now faced with the loss of our AAA rating. This, along with the threat of a mansion tax, may lead some foreign investors to look cautiously at the prime central London market; however, we believe that these factors are more than outweighed by the current weakness of Sterling against both the Dollar and the Euro."

Lettings fell slightly from a busy January to normal seasonal levels, adds the agent.

Lucy Morton, senior partner and head of lettings at Prime Central London estate agency, W.A.Ellis, comments: "In comparison to January where enquiry levels in the lettings market rose by 100%, the school half term holidays have had a noticeable effect, with levels dropping back to their normal average for this for this time of year. This doesn't necessarily indicate that the market has slowed down, but there isn't the same frenzy of activity we witnessed at the start of the year.

"The European Parliament recently sanctioned that bankers' bonuses across Europe cannot exceed their basic salary, prompting some concern in the lettings market. Although housing allowances are almost always kept separate from bonuses, these blue chip tenants do tend to drive the top of the market in prime central London, and this announcement has sparked fears of a departure of expats from London to other financial capitals."

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Mayor of London secures £100m to boost affordable homes

Ivan Radford — Mon, 11 Mar 2013 10:53:00 GMT

The Mayor of London, Boris Johnson, is urging affordable housing providers to step forward and claim a share of £100m in funding to boost the supply of much needed homes in the capital.

The new investment secured by the Mayor from the Government forms the latest part of his pledge to safeguard the capital's competitiveness by improving the housing options of working Londoners, as well as boosting jobs in the construction industry.

The money, which is additional to the first £100m 'Housing Covenant' funding announced by the Mayor in September, will be targeted specifically towards housing providers who commit to starting construction on site by March 2015 at the latest.

Developers, local authorities, charities and private organisations are all invited to bid for funding, which will be used to deliver affordable homes to own. The Mayor also wants to hear from organisations committed to bringing empty properties or under-used commercial units back into use as affordable homes or to help London boroughs tackle homelessness. Organisations interested in submitting bids in London will need to do so by April 30.

The Mayor of London Boris Johnson, said: "This latest tranche of cash is another fantastic opportunity for housing providers in the capital to deliver the homes that this city desperately needs. Whether it's for affordable homes to own, or to make better use of properties that lie empty or under-used, the fund will help working Londoners across the capital and create valuable jobs in construction."

The Mayor, who has overseen the release of 100 hectares of Greater London Authority land since he assumed his new housing powers, announced last month that funding allocations for the first part of his Housing Covenant would deliver more than 3,000 homes and support around 6,000 construction jobs.

50pc of people prioritise a holiday in 2013

Ivan Radford — Fri, 08 Mar 2013 15:01:00 GMT

Britain is not exactly known for its good weather, but it's really outdone itself this year. Snow, ice, bitterly cold winds and a spattering of hail showers - we've seen it all!

But while the weather in the UK has been cool, leading travel agent Thomas Cook has found that over 32 million of us have already started searching for holidays on their website - with Greece making a strong comeback.

A recent poll by Thomas Cook found that a holiday abroad was our top spending priority this year - with almost half of respondents (47%) saying it would be their most important purchase.

Brits are so eager to leave their everyday stresses behind that one in ten have already hit the high street to replenish their holiday wardrobe. Already busy swapping fleeces for flip-flops and snow boots for skimpy bikinis, many of us are already dreaming of jetting off to exotic destinations, with cheap Holidays to Bodrum proving a popular choice this summer.

Thomas Cook's research shows that one of the top holiday hotspots we're dreaming of is Greece, with the country making a strong comeback this year. However, with over 32 million searches conducted on their website so far this year, people are taking advantage of the wide range of exotic destinations available - with Dalman holidays, European breaks and holidays to Antalya also proving popular.

With holidays a central priority, Brits are happy to splurge on their tropical breaks. The expected average spend per person in 2013 is £672, with a quarter of Brits set to part with between £500 and £1,000 per person.

However, in this age of austerity, a holiday may seem like a luxury you simply can't afford. If leaving a £1,000 gap in your finances isn't possible, why not book an all-inclusive getaway? These have dramatically increased in popularity during this tough economic climate, and half of Thomas Cook's charter packages sold in 2012 were all-inclusive.

Sales soar as UK house prices almost return to 2008 peak

Ivan Radford — Fri, 08 Mar 2013 11:57:00 GMT

UK house prices are almost back to their peak, according to LSL Property Services/Acadametrics.

The firm's latest index reveals that prices rose 0.6 per cent in February to £229,544, 3.7 per cent above last year and just 1 per cent off the previous peak recorded in February 2008.

Richard Sexton, director of e.surv comments: "February's figures paint a much warmer picture for the housing market. Values have climbed £8,154 in the past twelve months and the 0.6% monthly increase in February is one of the biggest monthly increases seen in the past fifteen months.

"The housing market is beginning to change gears and pick up some momentum. February sales leapt up by 15%: that's five times the usual seasonal rise thanks to improved mortgage availability and cheaper funding. The Funding for Lending scheme is allowing lenders to reduce mortgage rates and this has led to a mini-revival in the first time buyer market. High LTV lending is forming a bigger overall share of lending and credit scoring is easing.

"On a regional level, disparities are growing and London remains in a different league to the rest of the country. On the opposite side of the spectrum Wales experienced the largest fall in annual house prices of -0.6%. And there is a word of warning. Despite gradually improving mortgage availability, cash buyers are accounting for around a third of all house sales illustrating the market is still depending on them to help sustain activity, with high value property in London seen as shielded against the difficult economic conditions in Europe.

"And despite the improvements in the mortgage market, funding conditions are still tight for lenders and they are under extreme pressure to increase the mortgage funding on offer. It is also unclear what impact the weak sterling may have on the economy over the next few months.

"There are hopes the government will announce a new mortgage indemnity scheme to encourage higher loan to value lending in this month's budget. If funding conditions remain favourable for banks and if rates remain low, there is good reason to believe the housing market will kick on and see a strong spring growth spurt."

Town house prices up as country slides

Ivan Radford — Fri, 08 Mar 2013 11:14:00 GMT

Town house prices have increased over the last year, while values of property in the country has dropped, according to new figures from PrimeLocation.com.

The average asking price of properties for sale in urban areas in England is up 1.9% on this time in 2012, while asking prices for properties in the country are down 5.1% over the same period.

Indeed, urban asking prices now stand at an average of £315,170, up from £309,280 one year ago while rural asking prices are now £272,180 on average, down from £286,890 this time last year. That makes the average rural retreat 14% cheaper to buy than the average urban pad. (Urban/rural areas as defined by Department for the Environment, Food and Rural Affairs).

Over the past 12 months, country property prices have fallen hardest in the North East (down 11.3%) and the South West (down 10.0%). The only real bright spot in the country property market over the last year has been in the South East where rural asking prices are up 2.2%. Asking prices in urban areas have gone up by the largest amount since this time last year in London (up 12.2%), followed by the West Midlands (up 7.9%).

Lawrence Hall of Primelocation.com, comments: "While country houses in the South East have seen their prices increase, fuelled by those looking to escape city life, on the whole the rural property market has been struggling with an overall decline in asking prices of over 5% from last year. Of course, for some this recent decline may create the perfect opportunity to make the leap from town to country."

National Trust warns of "planning war" in the UK

Ivan Radford — Fri, 08 Mar 2013 11:12:00 GMT

Government plans to make development of housing easier across the UK are creating a "planning war" in the UK countryside, the National Trust has declared.

"If you start trying to build houses where people don't want them, rural Britain becomes a warfare area," Sir Simon Jenkins, chairman of the charity, warned. "Everywhere you go people are fighting applications for [land] development."

Local authorities have until the end of March to develop local plans for development in their area but new research from the National Trust suggests that 51 per cent of councils will miss the deadline.

"Councils that fail to adopt a local plan by the end-of-March deadline will be subject to the ‘presumption in favour of sustainable development' in the National Planning Policy Framework," explains the Trust.

"This could mean an easy ‘yes' for development proposals on the 55 per cent of England without national protection - that is land outside, for example, Areas of Outstanding Natural Beauty or designated Green Belts.

"Without an extension to the deadline, communities the length and breadth of England could be at risk of unwanted speculative development on land that has not been identified for development, as developers seek to cash in on the planning loophole."

Peter Nixon, Director of Conservation, added: "'Speculative development is the polar opposite of good planning. The success of the National Planning Policy Framework depends entirely on local plans being adopted. This is why we suggested that councils should be given two years to adopt their plans. A perfect storm of council cuts, the loss of regional strategies and just 12 months to adopt new plans has been too much for many councils to bear.

"Councils need more time to get their local plans in place to protect land from unwanted development and ensure communities get the developments they need, in the right places. Only in this way can development be genuinely sustainable."

Jenkins has also warned that the government's relaxing of planning regulations could prove counterproductive.

"It will not produce more housing but just more conflict," he told The Guardian. "Everyone will spend their time fighting, and fighting, and fighting."

Indeed, the National Trust "spend [their] entire time in court", Jenkins told the paper.

Others feel that the National Trust's comments are inflaming the situation further.

Steven Lees, Director at SmartNewHomes, responded: "The National Trust is painting a rather dramatic picture of housebuilders' effect on the countryside. Contrary to the much bandied about belief, it is not easy to get planning permission for new developments anywhere in the country in spite of the presumption in favour of sustainable development contained in the National Planning Policy Framework. As part of the existing planning process housebuilders consult extensively with local communities and are receptive to concerns which can very often be addressed immediately.

"Although the Government has implemented a number of schemes and initiatives to help generate much needed new homes and incentives to buy them many councils are yet to assess their community's housing need and implement development plans."

House of Lords vote for lettings regulation

Ivan Radford — Fri, 08 Mar 2013 10:56:00 GMT

The Royal Institution of Chartered Surveyors (RICS), The Property Ombudsman, Which? and ARLA welcome the decision in the House of Lords to introduce an amendment in law to help protect tenants and regulate the lettings industry.

These organisations and others have long campaigned for the regulation of the lettings industry, working with MPs and Peers to highlight problems and inconsistencies in current legislation which is having a detrimental effect on consumers and business. Following the House of Lords vote, RICS, The Property Ombudsman, Which? and ARLA now look to Government to implement these much needed changes.

The change to the law will give tenants much needed access to redress in the event of poor practice, and helps raise standards in the lettings market. In addition it will:

Extend consumer protection measures governing estate agents to letting agents, giving the Office of Fair Trading (OFT) powers to ban sales, lettings and managing agents who act improperly. Require all agents to have clear and free consumer redress mechanisms in place Stop sales agents who have been banned from trading to immediately set up a new business as a lettings and/or managing agent.

Peter Bolton-King, RICS Residential Director commented: "RICS has long called for the regulation of the lettings industry, given that ultimately, this is about the provision of shelter, a basic human requirement. This decision is one step nearer to this vital change becoming law.

Ian Potter, ARLA Managing Director added: "We all look forward to working with Government on the Bill as it moves back to the Commons for final approval".

Christopher Hamer, The Property Ombudsman, said: "From my experience of disputes that arise between consumers and letting agents this is a welcome and positive step that could see the 40 per cent of agents currently not registered with TPO or affiliated to a professional body, brought within a framework of standards. This will mean greater protection for a greater number of consumers."

Richard Lloyd, executive director of Which?, said: "Renting is now the only housing option for millions, and our research has shown this market is dogged by poor practice and there is an alarming lack of consumer protection.

"Tenants deserve much better and the Government must take this opportunity to improve regulation and redress in this sector. We want letting agents to be covered by the same rules as estate agents, overseen by an independent ombudsman."

For more on lettings market regulation, listen to our February podcast: Should lettings agents be regulated?

Balance of power shifts from London landlords to tenants

Ivan Radford — Fri, 08 Mar 2013 10:46:00 GMT

The balance of power in London's property market has shifted from landlords to tenants, according to Chesterton Humberts' latest report. The research reveals that increased stock levels have given tenants greater choice in the prime London residential lettings market.

This shift of power has taken place gradually over the past year as buy-to-let landlords have been encouraged back into the market by the strong growth of the private rented sector and an increase in buy-to-let mortgage lending, which rose by nearly 19% in 2012.

On the demand side, corporate tenants, who make up a large proportion of the prime central London lettings market, have seen their relocation packages cut and are now looking for better value for money, while private tenants are also looking for cheaper accommodation.

The combination of increased supply and more cost conscious tenants has resulted in rents coming down slightly (by 1.7%) in last quarter of 2012. Chesterton Humberts expects rents to remain subdued in first half of this year with modest growth of 2%-4% forecast in the second half of 2013.

Nick Barnes, Chesterton Humberts' head of Research, comments: "Many landlords are now being more flexible when it comes to rent reviews with existing tenants, on the basis that it is better to retain a good tenant who pays their rent and looks after the property than deal with the hassle and expense of filling a void with a new and unknown tenant.

"Many tenants are now operating on reduced budgets and are looking for better value, even if it means moving away from their preferred central locations. Nonetheless, investors have still benefited from healthy capital growth and, provided they are realistic about setting rental levels, there is still plenty of tenant demand."

Investor interest in prime central areas continues to grow, mainly from small landlords but also increasingly from corporate investors and institutions. For example, Islington Council is about to become the first London borough council to invest some of its pension fund capital in residential property.

The increased investor appetite during the year as a whole was reflected in a number of key indicators: lettings valuations carried out by Chesterton Humberts in 2012 rose by 15.1% compared to 2011, while instructions were 10.9% higher.

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Number of first-time buyers rises in London

Ivan Radford — Thu, 07 Mar 2013 12:22:00 GMT

The number of first-time buyers in London rose by 15% in 2012, marking the largest annual total since 2007, according to new data released by the Council of Mortgage Lenders.

A total of 37,300 first-time buyers bought a home in London in 2012, up from 32,400 in 2011.

On a quarterly basis, first-time buyer activity increased, while home mover lending fell and remortgage lending remained stable.

In the fourth quarter, a total of 10,200 first-time buyers bought their first home in London, a 4% increase compared to the previous quarter, and up by 17% on the fourth quarter of 2011. This represented a larger boost compared to the UK overall where lending to first-time buyers increased by 14% compared to the fourth quarter of 2011.

It was also the largest single quarter for first-time buyer activity since the last quarter of 2009 - when activity was boosted prior to the end of the previous stamp duty holiday.

First-time buyer affordability in London remained tighter than in the UK overall. First-time buyers in London borrowed an average of 3.59 times their income in the fourth quarter and their mortgage payments typically consumed 21.2% of their income. This compares to an average income multiple of 3.26 and 20% of income taken by mortgage payments for all first-time buyers in the UK.

First-time buyers in London also put down larger deposits than in the UK overall. The average loan to value ratio remained at 75% in the fourth quarter and 2012 overall, compared to 80% in the UK.

Half of all first-time buyers in London bought properties priced between £125,000 and £250,000. This was a similar proportion to the UK at 47%, but first-time buyer activity was significantly different for properties priced below £125,000 and above £250,000.

While in the UK around 40% of first-time buyers typically bought properties for less than £125,000, in London almost no (4%) first-time buyer purchases were in this band, with the remainder at above £250,000. At the other end of the scale, 8% of first-time buyers in London bought properties valued at more than £500,000, compared to just 2% of these borrowers in the UK.

As in the rest of the UK, lending to home movers in London fell in the fourth quarter. A total of 9,600 loans (worth £2.6 billion) were advanced to home movers in London, a 7% fall compared to the third quarter, but up by 4% compared to the fourth quarter last year.

The dip in the last quarter of the year did not counter the improvement seen earlier in the year. Overall, lending to home movers increased by 4% in 2012 with 37,200 loans advanced compared to 35,600 loans in 2011.

Total house purchase lending fell in the fourth quarter compared to the previous quarter but stronger compared to the same period in 2011. 19,800 loans were advanced in the last quarter of 2012, down from 20,100 in the third quarter, but up by 11% compared to the fourth quarter in 2011 (17,900 loans).

The increase in lending to both first-time buyers and home movers in 2012 overall, resulted in a 10% increase in house purchase lending in 2012. A total of 74,600 loans were advanced (worth £17.8 billion), up from 67,900 loans (worth £16.3 billion) in 2011 - the largest annual total since 2007.

In the fourth quarter, £2.02 billion was advanced for remortgaging, unchanged from the third quarter but still 10% lower than in the same quarter of 2011.

As in the UK overall, remortgage lending in London was subdued in 2012. A total of £8.4 billion was advanced to borrowers remortgaging, a 3% fall compared to 2011, a smaller fall than was seen in the UK as a whole.

Commenting on the data, CML director general Paul Smee said: "These figures show that first-time buyers in London are regaining their confidence and returning to the market. Even though property in London remains more expensive than in the rest of the UK, low interest rates and the increased availability of high loan-to-value mortgages for borrowers with smaller deposits has enabled more aspirational homeowners to enter the market than any time in the last five years."

York tops poll for second homes in the UK

Ivan Radford — Thu, 07 Mar 2013 12:06:00 GMT

In a landslide victory, York beat off nine other destinations to be voted the most popular choice for a second home in the UK in the poll in new homes portal whathouse.co.uk's monthly digital magazine. Some 66% of readers voted for York as their top choice. The walled Yorkshire city was followed by Devon with 9% and then Scottish Highlands with 7%. Bath and Cornwall tied at 5%, while Brighton bagged 4% of the vote.

The medieval city of York has long been a popular UK holiday destination with its long list of attractions including the award-winning Jorvik centre, York City Walls and York Minster. However the fact that it polled significantly higher than south west favourites Devon and Cornwall was surprising to whathouse.co.uk assistant editor Laurna Robertson.

She says: "While York is a vibrant city with lots to offer residents and holidaymakers, coastal counties like Cornwall and Devon are traditionally considered to be more desirable areas for second homes. I wonder if the popularity of York may have to do with the more affordable homes for sale there in the current climate."

According to BBC figures, the average house price in York is £203,485 which is significantly more affordable than Devon, £233,634, Bath, £281,990, Cornwall, £224,128 and Brighton and Hove, £284,174. The Scottish Highlands is considerably lower than the others with the average price at £152,432.

Steve Woomble, sale director for Linden Homes, said: "It is wonderful to see York doing so well in opinion polls like this. It is a wonderful city that combines the historic so well with the vibrancy and general buzz about the place. Linden Homes recently launched our newest development in York - named 1877 to commemorate the golden age of railway. It is proving hugely popular with homebuyers with a range of budgets and living requirements - further adding evidence that York is a much sought-after location."

Paul Newman, managing director for Barratt David Wilson Yorkshire East, said: "There have been many encouraging signs of continued success in the property sector across this region and York has been a stand out success for some time.

"We have been successfully building in York for more than 40 years now and designed developments which meet and hopefully exceed our buyer's expectations. We have one active site, Derwenthorpe that has achieved near sell-out success in just 18 months with only three of the 64 properties remaining and have several new exciting schemes opening in York in the near futurewhich will be perfect for buyers looking for a first or second home."

Whathouse.co.uk has a range of new-build properties available in York with prices starting at £229,995 for a four-bedroom detached house. Developers working in the area include Barratt Homes, David Wilson Homes and Linden Homes.

Holiday home rentals inject £800m into Cornwall economy

Ivan Radford — Thu, 07 Mar 2013 11:48:00 GMT

The letting of second homes to self-catering holiday makers in Devon and Cornwall injected £800 million into the local economy in 2012, according to a report Charts Edge.

The figure, which does not take into account the employment and tax revenue this also generated, reveals the importance of tourism in the South West as the season gets longer.

According to the 2011 census there are 2.7 million people employed in the tourism industry in the UK (about 9.5% of total employed people) with 260,000 employed in the South West.

In Cornwall alone, the proportion of people employed in the tourism sector is 14.9% and in Torbay South Devon this rises to 16.7%.

The strength of the tourist sector makes the area a prime hotspot for holiday home rentals. Indeed, in Cornwall there are 19 second homes per 1,000 usual residents, in most of Devon there are 3-14 second homes per 1,000 residents, and in South Hams there are an even higher 45 second homes per 1,000 residents.

Holiday letting agents like Pure Cornwall, specialists in 4* and 5* self catering holiday properties. employed 8 local people when they opened five years ago, but now use local contractors, plumbers and carpenters who are busy all year round, doing running repairs in the summer and maintenance and refurbishments in the winter. They also use local suppliers for food hampers, surf lessons and classic car hire, who in turn also gain from the tourism industry.

Other developments, such as Talland Bay in South Cornwall, see four newly designed detached holiday homes being built in the area. They already have record bookings for 2013.

Looking to join the holiday home boom?

Browse our listings of property in Cornwall:

http://www.themovechannel.co.uk/property/england/cornwall/

Spring comes early to Surrey with 50pc increase in sales enquiries

Ivan Radford — Thu, 07 Mar 2013 11:28:00 GMT

It appears that the traditional spring rush on homes for sale has arrived before the daffodils this year.

Barton Wyatt, the leading estate agency in Virginia Water, Surrey has seen a 50% increase in enquiries during January and February this year compared to the last two months of 2012.

Reminiscent of pre-recession days, Barton Wyatt have seen three buyers fighting over one property available for sale in Virginia Park and new homes which stood empty for far longer than the developer had predicted, have suddenly come unstuck and sold.

This feeling of buoyancy in the market is a great relief to agents who have almost been holding their breaths for the last year.

Indeed the Knight Frank HSPI February survey also predicts a strong 2013 with Londoners remaining the most upbeat about prices closely followed by those in South East.

Considering the nature of these 2013 buyers, James Wyatt believes, along with the experts at Ernst & Young, that UK tax reform is driving inward investment, resulting in scores of multinational companies relocating their headquarters to the Square Mile and their employees to surrounding counties such as Surrey.

Already a booming market, accounting for half of all tenants in 2012, US expat professionals and their families are one hot market to watch as well as the on-going influx of Russian, Eastern European and indeed Asian buyers looking for a bolthole in leafy Surrey.

James Wyatt of the award-winning Barton Wyatt comments:

"Last year was all going extremely well until the market was suddenly squashed by the increase in stamp duty in April. After that it went quiet for pretty much the rest of 2012 but pent-up demand has caused a rise in buyers who are tired of waiting and ready to commit.

"Here in Surrey prices appear to have stabilised which encourages confidence in the market and this, combined with the re-emergence of cheap money (mortgages are available at sub 3% if you have a reasonable amount of equity), means that we are confident of a busy year in 2013."

Should you rent out your home instead of sell it?

Ivan Radford — Thu, 07 Mar 2013 11:24:00 GMT

As the home experts at Realtypin.com have pointed out, despite slow and steady progress in the housing market, many homeowners are still afraid to list their homes for sale.

But what if you have to move? Do you have to forget your fears, or is there another way to tap into the value in your home without doing something that terrifies you? If you're just too scared to stick a "For Sale" sign in your yard, what about a "For Rent" sign, instead?!

After all, there are plenty of people out there who are just as scared to invest in the housing market. In fact, the demand for rental properties has never been higher - as evidenced by the sky-high rental prices in many places around the country. So, if you've got to move onto another place, renting out your home may be the way to go. That way, your home can still make you some money. But becoming a landlord means taking on added responsibilities.

Before you start looking for tenants, you've got to think about these 3 things:

1. How much you're going to charge
If nothing else, you need a tenant's rent to cover your mortgage payment and maintenance costs every month. Depending on when you bought your home, that may be a lot to ask. For example, if you bought your home at the height of the housing boom - and got a mortgage that didn't require you to put any money down - you've probably got a giant monthly payment. You'll have to make sure that your home can actually command that amount every month, which brings us to point #2...

2. How desirable your home is
Do you live in a great school district? Near a beautiful park? Close to the bustling downtown area? Similar to a sale, the more amenities your home brings to the table, the more you'll be able to charge for rent every month. But if your home is out in the middle of nowhere - or in some other less-than-desirable location - it may be tough to command a large monthly rent payment.

3. How you're going to deal with maintenance issues
When you're the landlord, you're in charge. So, if the air conditioner stops working, the kitchen sink starts leaking, or the bedroom window won't shut all the way, you're going to get a phone call. And, in some cases, you'll be required by law to get things (like water, electricity, and air conditioning) back up and running immediately. Are you prepared to deal with that? If not, there are companies that will manage the property for you - for a fee, of course. Typically, they charge a percentage of your tenant's rent payment, so you'll have to factor that in, too, when you come up with a price.

Central London development hits post-crisis peak

Ivan Radford — Wed, 06 Mar 2013 12:54:00 GMT

The Central London development market* experienced heightened levels of activity during 2012 that saw sales and construction hit post-crisis peaks say Jones Lang LaSalle in latest residential market research. And these strong levels of activity look set to continue through 2013.

In 2012, over 7,300 new units exchanged in central London, a 50% increase year-on-year and the highest number recorded since the financial crisis. Looking at Q1 2013, there stands to be a further improvement but the research shows that rates of sale in Central London were already improving steadily throughout the course of 2012.

Looking at these rising levels of demand, Peter Murray, Lead residential director at Jones Lang LaSalle commented: "The prominence of overseas buyers has undoubtedly been a driving force for this market. They are increasingly knowledgeable and are coming from a more diverse global network. Asia-Pacific purchasers are still leading the pack but we are seeing others from areas such as the Middle-East and Turkey following closely in their footsteps. But we must also not underestimate the activity from the domestic UK market. 2012 saw an increase in activity from UK purchasers and this positive upswing looks set to continue into 2013 as levels of interest are only set to increase."

The number of units launched in 2012 was also significantly higher - 6,800 in 2012 compared to 5,600 in 2011 with Core locations experiencing even higher levels of growth. Importantly, this increase in launch and sales activity has led to a steady contraction in the number of unsold units.

Although this rise in activity looks promising, we are still a long way from the boom levels of the mid-2000s. Conditions are encouraging but polarisation between Core and Outer Core* markets is still evident with some schemes reporting exceptionally high levels of sales while interest at others has been minimal.

Murray goes on to say: "It is all down to location and quality of product. Demand for schemes in Core locations with good transport links and proximity to central London continue to do well. While overall activity in this market looks encouraging, developers must assess their options carefully."

On average Central London price growth across Core and Outer Core locations rose by 3.5% in 2012. Core locations experienced an average 4.1% rise while Outer Core areas witnessed a 2.9% increase. We continue to predict average price rises of 2% in 2013 accelerating towards 8%pa by 2016.

Turning to the central London development market, there are now 14,250 units under construction across the whole of our central London area* boosted by a surge in new starts in 2012. Developer sentiment remains positive with the majority feeling enthusiastic about progressing development. Andrew Frost, Lead residential director at Jones Lang LaSalle commented: "The market continues to be dominated by volume developers with balance sheets that enable a broader range of financial solutions. Niche developers reliant on project based finance are experiencing an improving environment but continue to find the availability of finance tough going."

The River submarket has the highest levels of construction with over 3,000 units coming out of the ground, but this is also the market where demand is greatest. The East has the second highest volume of development and the City is the third active.

Commenting on the outlook for the central London development market, Neil Chegwidden, residential research director at Jones Lang LaSalle said: "The outlook for the Central London residential market over the next five years will be determined by three key factors - overseas demand, domestic demand and available supply. Importantly, the outlook for all three looks to be supportive of further upward price growth and market activity.

Prospects have also improved in recent months as concerns surrounding the tax position of some overseas buyers following the 2012 Budget consultation proved less imposing than originally thought. These factors together with the weakening of sterling, London's safe-haven status and the UK's continued political stability mean London is likely to see significant inward capital flows over the next few years. On supply, we expect new development activity to continue to increase over the next five years, but very importantly we do not forecast that this will be sufficient to meet the growing demands of London's expanding population. So, as demand grows and supply shortages are exacerbated we believe price growth will be pushed towards 8% pa by 2017."

Property tax campaign targets second home sales

Ivan Radford — Wed, 06 Mar 2013 12:50:00 GMT

A new tax campaign has been launched to target second home sales.

The Property Sales Campaign is aimed at people selling homes in the UK or abroad that are not their main homes where Capital Gains Tax (CGT) should be paid on any profits made. This includes, for example, properties people have sold that were given to them, and the sale of holiday homes.

People will have until 9 August to tell HMRC about any unpaid tax on property sales, and until 6 September to pay the tax owed.

After 6 September, HMRC will take a much closer look at the tax affairs of those who have sold properties other than their main home, but who appear to have paid no CGT. By using this campaign to come forward voluntarily, people will receive the best possible terms, as any penalty they pay by coming forward voluntarily will be lower than if HMRC comes to them first.

Marian Wilson, Head of HMRC Campaigns, said: "Some people will not understand that selling a second home, a holiday home or a property disposed of as a gift could attract Capital Gains Tax. They need to look at our website or contact us. Telling HMRC about your tax liabilities is simple and straightforward, and help, advice and support are available.

"It is better to come to us before we come to you. After the opportunity closes on 6 September, HMRC will use information it holds about property sales, in the UK and abroad, to identify people who have not paid what they owe. Penalties - or even criminal prosecution - could follow.

People can take part in the campaign by telling HMRC about unpaid tax by 9 August or disclosing the details of what they owe paying the tax owed by 6 September.

For more details plus help and support about the campaign, customers can visit HMRC's website

Optimism over UK house prices hits two-year high

Ivan Radford — Wed, 06 Mar 2013 12:50:00 GMT

Increased optimism Over house prices in February spurred economic confidence to its highest level since June 2010, according to YouGov's latest Household Economic Activity Tracker (HEAT).

The HEAT index improved by 3.5 points in February to 98. The improvement in economic optimism has been building since the start of 2011, and although confidence is at its highest level for 32 months it is still marginally ‘in the red' at a level below 100.

YouGov's data suggest the driving force in this improvement is a growing belief among home owners that the property market has stopped falling and has actually strengthened - especially in London. One in three (29%) people in the capital believe house prices rose in February compared with just 7% who think they fell. In the UK as a whole, just 14% of respondents in February thought their home decreased in value during the previous month, down from 18% in January and 27% in August 2012.

For the first time since mid-2010, the average homeowner expects prices to rise over the coming year. Almost a third (31%) of respondents expect house prices to be higher a year from now, more than double the percentage (14%) who think they will be lower. Survey respondents are looking for a 0.6% rise in home prices on average over the coming year, compared with the 0.1% decrease they expected last month.

This property bounce appears to be having a positive effect on the homeowners' household finances, with fewer households reported a deteriorating financial situation compared to last month. Those who believe the value of their house increased during February were twice as likely to think their overall financial situation had improved compared to those who thought their property's value had stagnated or declined (9.2% to 4.6%).

James McCoy, Research Director for YouGov SixthSense, says: "The housing market might finally have turned a corner, and in doing so, has given greater economic confidence to homeowners. It has been a long and painful road to this point and it is important to remember that confidence is still marginally ‘in the red'. Things are still incredibly fragile and it will be interesting to see what impact this month's budget has on consumer confidence in general and homeowners specifically."

Dominic White, Chief European Economist at ASR, said: "The housing market always provides an insight into UK consumers' general sense of wellbeing. The gradual recuperation in house prices expected over the coming year could be a sign that pressure is starting to ease on household finances and consumers have a little more cash in their pockets."

Buy-to-let beware: the worst investment hotspots

Ivan Radford — Wed, 06 Mar 2013 12:21:00 GMT

The number of EU nationals moving to The Balearic is on the up, according to new figures.

2.3 million "foreign" EU nationals are now officially registered in Spain, around 5% of the total population. Yet the figure for the Balearics alone is 133,740, a mighty 12.5% of the Islands' inhabitants.

Balearics Sotheby's International Realty has been speaking with Europeos por España (Europeans for Spain or EporE). Kate Mentink, Founder and President of EporE, explained: "Taken from the latest 2012 census the figure of 133,740 EU nationals, almost 100,000 of those living in Mallorca, is an increase on the 2011 total of 130,385 and an even bigger increase on the 2010 figure of 109,026 - due in part to Bulgaria and Romania's accession to the EU a few years earlier in 2007. The biggest group, again, is those of German nationality with 36,758 officially registered followed by the British at 23,804 and the Italians in third with 18,385."

Whilst the number of EU residents has steadily risen, the total of non-Europeans living in the Balearics has taken a tumble as financial pressures have made repatriation a sensible option. Another interesting point is that, whilst 15 years ago most EU residents were retirees over the age of 60, that figure has now dropped to an average age of below 40. Of the British total, only 5,175 are of retirement age with over 15,000 being of working age.

Daniel Chavarria Waschke, Managing Director of Sotheby's International Realty with offices in both Ibiza and neighbouring Mallorca, understands the appeal: "Traditionally our clients were wealthy discerning Europeans who were choosing to relocate for a peaceful retirement in the sunshine. Today, whilst that market of course exists, they are joined by younger couples or families looking for a change in lifestyle encouraged by the Balearics' low crime rates, excellent schooling and good sense of community - all in year-round warm weather. Being able to enjoy an outdoor existence on the beach, golf course or out on the water is something most Northern Europeans crave and the Balearics offer all this and more."

Organisations such as EPorE, constituted in 2008, work hard to secure equal rights for all EU nationals living in Spain, particularly in the Balearics. They understand that the arrival of European residents a whole generation younger than 15 years ago has an inevitable effect on education, health and other services provided by the authorities. EporE acts as a lobby group at local, regional and national level, as well as in Brussels when necessary, and is currently working on projects as diverse as parity for all citizens with regard to inheritance laws and the right to vote in elections.

Daniel finishes, "We admire the work of EporE and its ethos of promoting citizenship participation in the foreign national's adopted town or region of residence. After all, many of our house buyers will end up spending many years living and working on the Islands, bringing investment with them and perhaps setting up small businesses. Their voices should be heard as much as those of their native neighbours."

Planning to move to Spain?

Browse our listings of property in The Balearic Islands

http://spain.themovechannel.com/property/balearic_islands

Mayor of London launches new land database to spur development

Ivan Radford — Wed, 06 Mar 2013 12:03:00 GMT

The Mayor, Boris Johnson, has launched a new database detailing Greater London Authority (GLA) land assets as he continues to push for greater amounts of public land to be released for development, accelerating the number of homes being built in the capital and boosting the economy.

The GLA, which inherited over 600 hectares of land as a result of the Localism Act in April 2012, is currently one of the largest owners of public land in London. The new Land Assets Database, a manifesto commitment, details these holdings and includes information about the size and location of individual sites as well as aerial photographs. This is the first time these sites, and those of the GLA functional bodies, have been made publically available in this way, making it far easier for anyone with an interest in this land to find out more.

Since May 2012 the Mayor has already released more than 100 hectares of this land, with an economic value of £1bn, and has committed that there will be a clear outcome agreed on all the GLA's land by 2016.

However he wants to see even more public land being brought forward for development and is establishing a housing procurement panel to help public land owners, such as London boroughs and Government departments, fast-track the release of their land and avoid the expensive lengthy process they would otherwise have to take on if they acted alone.

The Mayor of London Boris Johnson said: "London is facing unprecedented demand for housing and public land is one of the most important tools we have in our battle to build more homes. However these sites are useless unless we unlock their massive potential. I want developers to trawl through this new database and bombard us with great ideas on how they can transform these unused pockets of land into exciting new places to live."

To view the GLA Land Assets Database go to www.london.gov.uk/priorities/housing/land-and-assets/land-and-property-database

UK house sales on upward trend

Ivan Radford — Wed, 06 Mar 2013 11:51:00 GMT

Sales of UK property are on an upward trend, according to the Halifax.

The lender's latest house price index reveals that activity and prices are both on the up, with values increasing by 0.5 per cent in February. The average house price is now £163,600, 1.9 per cent above February 2012, the second successive rise in this year-on-year measure and the biggest increase since September 2010.

Housing economist Martin Ellis commented: "The housing market continued to provide evidence of improvement in February. Prices in the three months to February were 1.9% higher than in the previous three months. This was the third successive increase in this measure of the underlying trend. Prices were also 1.9% higher than in the same period a year ago.

"House sales also continue on a modest upward trend. This increase in both house prices and activity in recent months is consistent with evidence of some improvement in market conditions. The more than half a million increase in the number of people in employment over the past year is likely to have been a factor supporting housing demand.

"We expect to see a national increase in house prices over the course of 2013. Weak income growth and continuing below-trend economic growth, however, are likely to remain significant constraints on housing demand."

Able to afford a UK home?

Browse our listings of property for sale in the UK:

http://www.themovechannel.co.uk/property/all

Investments Explained: Is fractional ownership the answer?

admin — Tue, 05 Mar 2013 13:11:00 GMT

Timeshare. The word has a bad reputation, associations with scams and expensive schemes that offer little in return.

But now, years after timeshare had its heyday, fractional ownership properties are becoming an increasingly popular investment for property hunters. Is it ever the answer? And is there any difference?

Unlike timeshares, fractional ownerships have a more positive reputation, which many attribute to the program's use of investor contributions to fund the properties themselves as opposed to paying for marketing and sales costs. As a result, fractional ownership properties tend to be bigger and of a higher quality. Exclusive, high-end properties are not uncommon, with fractional ownership allowing buyers to stake a claim in the home without having to pay the full price tag.

The scheme can involve purchasing a share in the property's legal title, but not necessarily so: often, investors buy into a company that operates the property.

Nonetheless, fractional investment is finding more and more support around the world, particularly during times of economic uncertainty: with buyers unable to afford ownership of a property, purchasing a portion of a property is a more affordable and accessible way to enjoy the lifestyle that goes with the real estate.

For example, one company in Italy, Appassionata, offers fractional ownership to buyers keen to enjoy the climate and landscape of one of the world's top retirement destinations.

"Fractional ownership means that we can offer our owners so much more - their share in the house comes with a swimming pool, all weather tennis court, spectacular landscaped gardens and breath-taking views, as well as a share in the estate's produce," explains the manager.

Other benefits include the management of a property, which is handled by the company in charge of the home. For those looking to retire, but are not yet old enough, or those who are unable to spend significant amounts of time abroad, fractional ownership schemes ensures that their investment can be maintained, significantly reducing stress and commitments.

Is fractional ownership ever the answer? For those with not much time or money, it can be.

For more information or to view listings of fractional ownership properties, click here.

Improving Oxford market earns property award nominations

Ivan Radford — Tue, 05 Mar 2013 11:15:00 GMT

Not only is a place at Oxford University still one of the most hard won in the world but the 'city of dreaming spires' has also roared in at second place in a recent Santander poll for the top UK towns and cities for business competitiveness.

Based on 20 factors that can drive private business competitiveness and success for towns and cities including enterprise, talent, connectivity, cost and well-being, the index is a comprehensive study of the largest 74 conurbations in the UK as well as 32 London boroughs.

Corporations such as Mini have brought wealth and jobs to the area and sales of the Cowley built iconic car have reached an all-time global high this month. In response to business demand a new hotel is earmarked for the area and DHL are hoping to open a new courier base nearby. Indeed these are not the signs of a depressed recession-hit county but one that is progressive and forward thinking.

Another business tapping into Oxfordshire potential is house builder Millgate. Developing their first eight homes in Marcham near Abingdon in early 2012 these luxury homes sold out in less than six months. Millgate went on to construct four further country mansions in Oxford's exclusive Boar's Hill area. This elite development was unique to the area as there has been almost zero new home construction in Oxford for the past couple of years - especially at the top end of the market where these homes sit.

Once again sales have been swift and just one of the four stunning homes, Highview Manor, remains. Featured in the Daily Telegraph, Oxfordshire Life and the Financial Times, this gorgeous house is now being considered for a prestigious Evening Standard New Homes Award 2013 for best luxury home.

Due to the success at Boars Hill, Millgate remained committed to the appeals of south Oxfordshire recently completing a third development at nearby Hinksey Hill. Named as one of the Top 20 places to live in the UK by Knight Frank, it is an area favoured by families for its easy commute into the city yet retaining all the benefits of a country location, Hinksey Hill is somewhat of a hidden gem.

Jonathan Cranley, Sales and Marketing Director at Millgate, comments on the house builder's achievements to date and plans for the future,

"Being based in Berkshire, Oxfordshire was virgin territory for us but after quickly establishing the high demand but lack of supply for luxury detached family homes which Millgate excel in building, it has been a hugely positive move. I have been delighted at the reaction buyers have had to our developments and indeed the Evening Standard New Homes Award we received last year for Beech House at Boars Hill."

First-time buyer demand drives up luxury property market

Ivan Radford — Tue, 05 Mar 2013 10:31:00 GMT

As the Telegraph recently reports of a ‘five year high' in asking prices on UK property, the steady recovery of the market seems upon us. Mortgage lending schemes are enabling more young people to buy for the first time, sending positive ripples right up to the upper tier of the market. It is unlikely to come as a surprise to anyone that Rightmove says it had found that 7 out of 10 people who plan to sell in 2013 will be aged over 45, suggesting that older people are likely to be driving the property market in the coming months.

Selling in order to downsize now the kids have flown the nest, or using the equity to move to a nicer house in a hot retirement spot, whatever the reason, it is this category of buyer that everyone's hopes are pinned on as the main "movers and shakers" in 2013.

But renewed momentum from first time buyers and its impact on the housing market should not be overlooked. The Council of Mortgage Lenders (CML) recently reported that lending to first-time buyers reached a five-year high in 2012. A significant step compared to 2008, when the CML reported their lowest quarterly figures for first-time buyers since 1974.

Over the last 12 months, better funding conditions and the success of initiatives like NewBuy and the £80 billion Funding for Lending Scheme have made overall lending conditions more competitive, accessible and affordable.

Industry experts, like Property Wire, have been buzzing from the new high in mortgage approvals, up 17% last month making it the best month since the 2008 financial crisis. Falling rates and a wider range of mortgages available have begun to work their magic.

Simon Bradbury, Senior Partner of Fine & Country Cambridgeshire said, "I am delighted by the recent increase in focus on FTBs which surely can only have a positive impact on the middle and upper sectors of the housing market. Already in the last month or so I have experienced a dramatic decrease in the length of time it is taking to sell a property in St Neots with a couple of extreme examples of houses receiving acceptable offers in less than 48 hours of them going on to the market. If just feels like we are turning a corner at the moment."

New mortgage offers from banks and Building Societies have started to fill the cracks in the lending market. In response to concerns that the average unassisted first-time buyer is 35, Barclays launched its "family springboard mortgage" knowing that family members are playing a larger role than ever before in helping their kids. The deal allows the homebuyer to borrow 95% of the value of a property providing a "helper" (such as a parent) puts a further 10% into a special savings account. The helper will receive interest and will be able to withdraw it after 3 years providing mortgage payments have been kept up to date.

When asked his thoughts on these new deals Simon comments, "it is interesting to see the innovation in mortgage products to help buyers get on to the property ladder. This gives today's borrowers the power of choice, which is fantastic. I predict this optimism to permeate right the way through to the mid and high end sectors, helping older buyers out there too."

"The changing lending landscape", he continues, "means confidence is rising, supporting an increase in transactions. Everything points to 2013 being a great year for property sales."

Mayor of London approves £1.5bn regeneration of Elephant and Castle

Ivan Radford — Tue, 05 Mar 2013 10:27:00 GMT

The Mayor, Boris Johnson, has approved plans for the £1.5bn transformation of the Heygate Estate in Elephant and Castle, helping to unlock the economic potential of this strategically important area of south-east London and create thousands of new homes and jobs.

In a significant boost to the continued regeneration of the area the plans, submitted by Southwark Council's development partner Lend Lease, will see the 23 acre site demolished and redeveloped delivering up to 2,469 new homes, a quarter of which will be affordable, as well as new shops, offices, leisure and community facilities and a park.

Up to 5,000 construction jobs will be created during the development stage of the project, with a further 1255 permanent jobs expected to be delivered once the transformation is complete. The project is one of a number of planned major developments that together with public sector investment are helping to transform the Elephant & Castle Opportunity Area, creating a town centre that will provide employment, better homes, improved transport links and community facilities for residents.

The Mayor has already committed significant funding through the TfL business plan for transport improvements in the area, including improvements to the northern roundabout and Elephant and Castle Tube Station, as well as work to improve conditions in the area for cyclists.

Welcoming the plans the Mayor, who wants to see more public land released for development across the capital to deliver more homes for Londoners and boost the economy, said: "It is vital that we push forward with work to unlock the massive economic potential of the Elephant and Castle area which has languished in a no-man's land for too many years. This development is a fantastic example of how new life can be breathed into communities, delivering thousands of new homes and jobs for Londoners."

The project is one of a number of major developments planned for Elephant and Castle, including 360 London, One The Elephant, and Tribeca Square which, together with the new shopping centre, will help to make it a key destination for leisure and shopping, bringing new businesses and prosperity to the area.

Cllr Fiona Colley, Southwark Council's Cabinet Member for Regeneration, said: "I'm pleased that the Mayor has recognised the importance of our plans to transform Elephant and Castle into a place where people want to live, work and visit. The development of the Heygate Estate with our partners Lend Lease, and our wider regeneration of the area, will bring 5,000 new homes, 6,000 jobs, a new park, a new leisure centre, and vast improvements to transport and traffic in this important part of south London."

Mark Dickinson, Managing Director of Lend Lease's Development business in EMEA, said: "The regeneration of Elephant & Castle is now underway. The Mayor's approval of our master plan vision sets in motion our long-term plans and our commitment to the area. We've set out our blueprint for the future but there is a lot of detailed work to undertake and we'll continue working with the community at every step. At the heart of everything we do is the desire to create a sustainable place to live. A truly sustainable environment needs to bring economic benefits, support business growth and local job creation."

Scottish market set for “big house bargains”

Ivan Radford — Mon, 04 Mar 2013 13:04:00 GMT

The Scottish property market is set for "big house bargains" this year, according to CKD Galbraith.

The property consultancy argues that the flat residential market in Scotland over recent years has led to opportunities where large rural properties are available at "outstanding value for money" to buyers with deep enough pockets.

John Bound, a senior partner with the firm, said: "We are now seeing signs of cautious optimism relating to the residential market. A number of recent reports and analyses are suggesting that in more desirable areas of the country, property sales could pick up this year and start moving in the direction that vendors want.

"In the rural market there is no question that large houses, with a relatively small amount of land, have suffered disproportionately over the last few years and there have been remarkably very few sales over the £1 million pound mark.

"In our view, we could be looking at 2013 as being the right climate for the big house bargain - properties that would have commanded significant premiums in the past and which now offer outstanding value for money for purchasers.

"These are country houses, rather than estates which consistently remain in demand due to their unique characteristics. The most likely purchasers of country houses with an easily manageable amount of land will have the necessary capital at their disposal and will be in a position to acquire properties at what are at present very attractive prices, given their size and location."

Bumper start to 2013 as farmland values hit new record

Ivan Radford — Mon, 04 Mar 2013 12:43:00 GMT

Farmland had a bumper start to 2013, according to Chesterton & Humberts, with values hitting record levels once again.

A number of encouraging positive indicators have driven land values to reach new record levels, exceeding equities and national house prices in the long term, according to Chesterton Humberts latest farmland market snapshot. The company forecasts that farmland values will increase by 30% over the next five years as the fundamentals driving growth become stronger.

Despite extreme weather conditions and a stagnating economy, farmland values in Southern and Eastern regions saw strong growth during 2012, with national figures ending the year at an average of £21,053 per hectare and £8,520 per acre. Meanwhile long term growth shows figures have quadrupled since 1995, outpacing national house prices (160.2%) and FTSE 100 (92.4%). Agricultural rents also exhibited healthy growth reflecting the uplift in land and commodity prices.

Andrew Pearce, head of Rural Agency puts this increase down to a shortage of available land and strong buyer demand; "Commercial farmers are taking advantage of rising food commodity prices whilst investors view the growing population, rising food demand and limited supply of land as a solid long term investment opportunity."

David Hebditch, head of Chesterton Humberts' Rural Division, explains: "Investors are increasingly showing a greater appetite for assets which exhibit good growth potential and are tax efficient. Despite the recent adverse weather conditions, there is a compelling long term case for investing in farmland as the attractions of the sector with regard to scarcity value, rising food demand and tax advantages are set to continue for the foreseeable future. The increasingly unpredictable global weather conditions will likely exert upwards pressure on food commodity prices as well whilst new technology will create longer term greater efficiency and cost savings."

"We are quite bullish about medium term growth in farmland values given the likely supply/demand imbalance and have predicted that farmland values will rise by 6% per annum over the next five years, with larger good quality parcels capable of comfortably exceeding this."

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Young people “locked out” of home ownership in UK

Ivan Radford — Mon, 04 Mar 2013 12:25:00 GMT

Young people are locked out of the home ownership in the UK, according to the Chartered Institute of Housing.

The latest CIH research shows that homeownership among young people in England has plummeted by one-third in the past two decades, with 43 per cent of those aged between 25 and 34 owning their own home last year - down from 67 per cent in 1992.

The figure has fallen even further in the 16-24 bracket, with homeowner numbers dropping from 39 per cent in 1992 to just 14 per cent in 2012.

CIH chief executive Grainia Long said: "For millions of young people, the dream of home ownership remains just that - an unachievable dream. The country's chronic shortage of affordable homes to buy means they are being denied the same opportunities enjoyed by their parents and grandparents."

The decline in home ownership is putting increasing pressure on private rented housing, which accounted for 4.1 million homes in England in 2011, up from 1.7 million two decades earlier.

Grainia Long said: "In many parts of the country rising demand in the private rented sector is pushing both rent and house prices ever higher, making it even harder for young people to save for a deposit - while the deposit they need to get a mortgage becomes even larger."

Overall home ownership dipped from 68 per cent in 1992 to 64 per cent last year. Among the 35-44 age group it has dropped from 79 per cent to 63 per cent, while for those aged 45-54 it was down from 79 per cent to 71 per cent.

For older people however home ownership is on the rise - among the over 65s it jumped from 60 per cent to 76 per cent while among those aged 55-64 it rose from 73 per cent to 77 per cent.

Grainia Long said government schemes designed to help young people get a foot on the property ladder were welcome but limited in their impact when compared with the size of the challenge.

Orbit chief executive Paul Tennant said: "This review illustrates yet again the scale of the challenges we face in delivering the homes this country so desperately needs. Government must continue to do everything it can to support and encourage investment in housing, while we as organisations must innovate and collaborate to develop new models of supply."

UK house prices up by 0.2pc in February

Ivan Radford — Mon, 04 Mar 2013 12:21:00 GMT

UK house prices rose by 0.2 per cent in February, according to Nationwide.

The lender's latest house price index reveals that the price of a typical UK home is now £162,638, higher than January 2013, but unchanged compared to February 2012 - the second month in a row where UK property values remained flat across the year.

Nationwide's Chief Economist Robert Gardner comments: "While activity in the housing market remains subdued by historic standards, there have been tentative signs of a pick up in recent months. The Funding for Lending Scheme has achieved some success in bringing down mortgage rates, with encouraging signs of an improvement in credit availability.

"While the economic backdrop remains challenging, there are reasons for cautious optimism that activity will gather momentum in the months ahead. In particular, employment is rising at the fastest pace since the late 1990s which, if maintained, should help support demand for homes.

"However, progress is likely to be gradual, as stubbornly high inflation will continue to exert pressure on household budgets. Moreover, buyer confidence is likely to remain fragile until there are signs that the wider economic recovery is firmly entrenched."

After rising almost continuously over the course of the twentieth century, the rate of home ownership has been declining steadily since 2003 (see chart below). Indeed, the rate has dropped by more than five percentage points in less than ten years, from an all time high of 70.9% in 2003 to65.3% in 2012.

If we look at the shift in tenure patterns by age over the past decade we see a marked decline in homeownership rates amongst the younger age groups (see below). In particular, amongst 25-34 year olds, the category which traditionally contains most first time buyers, the proportion of households renting has increased from 40% to 57% between 2002 and 2012. For 16-24 year olds, the proportion renting has increased from 77% to 90% over the same period.

The increase has occurred in the private rental sector, which currently houses 17% of total households - the highest share since the 1970s. Indeed, the percentage of households in social renting properties is declining slightly, from 19% to 17% between 2002 and 2012.

The increase in the demand for rental property has put upward pressure on rents in recent years. In the decade before the financial crisis rental growth persistently lagged behind earnings growth, but this pattern has reversed. Despite the increase in the proportion of the population renting a home in recent years, the aspiration to eventually become a homeowner remains undiminished.

The most recent English Housing Survey suggests that 20% of people in social housing and 59% of those in the private rental sector expect to be able to buy their own home in future. However, the same survey found that, on average, people expect that this will take longer. Just 22% of private renters expect to take their first steps into the housing market within two years, down from 29% in 2008.

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Tenants in England pay £7.7bn more in rent than 2008

Ivan Radford — Mon, 04 Mar 2013 10:54:00 GMT

Private rents in England paid £7.7 billion more in rent last year than in 2008, according to new research.

A report from Castle Trust shows that as the number of tenants has grown by 23 per cent in the last four years, the cost of renting has also increased at a rate of £572 per year.

Indeed, analysis of the latest ONS English Housing Survey by the mortgage provide shows that the number of private renters in England rose to 3.8 million in 2012, an increase of 23% from the 2008 figure of 3.1 million, while the average annual amount paid on private rent increased by seven per cent from £7,956 in 2008 to £8,528 in 2012.

The dramatic increase in the number of private renters and the cost of rent is increasingly worrying given additional recent analysis showed that monthly mortgage expenditure constitutes 30% of an average household's total outgoings.

Castle Trust, which aims to provide a safer way to buy a home and a safer way to invest in property, believes households can search for new and innovative lending products to protect themselves from a potential rises in mortgage costs.

Sean Oldfield, chief executive officer, Castle Trust said: "Despite mortgage rates being well below their historic average, renting is booming as homeownership becomes more and more of a distant dream. Mortgage payments represent a significant proportion of a household's monthly spending and many people do not see the viability of owning a home.

"The risk of rising mortgage rates is a major issue for homeowners with their finances already under pressure and shared equity can play a major role in reducing risks, including the risk of going into arrears, by cutting monthly mortgage commitments."

Castle Trust is offering a new type of shared equity, called Partnership Mortgages, which enables homeowners under the age of 55 to issue equity in their home, as well as investment products, called HouSAs, which enable savers to invest efficiently in the national housing market, tax free if through their SIPP or ISA.

Partnership Mortgages are for 20% of the value of an owner occupied home alongside a repayment mortgage of up to 60% from a traditional lender and a deposit or equity of at least 20%. There are no monthly commitments on the Partnership Mortgage and Castle Trust will share 40% of any profit made by the homeowner when they sell or come to the end of the mortgage term. The company will also share 20% of any loss made on a home bought with a Partnership Mortgage.

Is this the world’s first 3D printed house?

Ivan Radford — Fri, 01 Mar 2013 13:49:00 GMT

Photo credit: Dezeen.com

Is this the first world's first 3D printed house? It might be, if Softkill Design has anything to do with it. The London-based architecture firm has announced plans for a plastic property that could be built in three weeks and assembled within one day.

3D printing has had an increasing impact in the property world, introducing a wealth of new possibilities for furniture and interior design. But now the real estate world is already moving ahead to bigger things, hoping to build an entirely printed house.

Softkill joining the race has heated up the competition ever further, with the company hoping to produce the first pioneering piece of architecture in the next few months.

"It will hopefully be the first actual 3D printed house on site," Gilles Retsin of Softkill Design told Dezeen magazine. "We are hoping to have the first prototype out in the summer."

The Protohouse 2.0 will be 8m wide and 4m tall and assembled from fabricated sections that would take three weeks to print - and simply snapped together on site.

"You don't need any bolting, screwing, or welding on site," he added. "Imagine a Velcro or button-like connection. The pieces are extremely light, and they just kind of click together so you don't need any other material."

The London group are going head to head with a company from the Netherlands, who announced their own 3D house at the start of 2013. But Softkill are unconcerned by their Dutch rivals.

"We actually don't even consider that a 3D printed building because he is 3D printing formwork and then pouring concrete into the form. So it's not that the actual building is 3D printed."

Protohouse 1.0 was unveiled at the 3D Print Show last year in London. The original was made up of a fibrous nylon material based on bone structure, which made it look like a giant sneezed. Indeed, Dezeen readers described it as "a dinosaur head made of spaghetti". Model 2.0, though, will have solid walls.

"Components for the Protohouse 2.0 will be fabricated in laser-sintered bioplastic at existing 3D printing facilities," explains the magazine. "This method provides better quality and structural integrity than printing on site using traditional materials such as sand or concrete."

"The printers that you use on site can only print and build something vertically," added Retsin. "So they put one layer on one layer and build up the structure vertically whereas if you print off site you're not operating in that vertical extreme, so you have much more design freedom."

Aaron Silver, also of Softkill Design, added: "I think there really is an interesting future for architecture and 3D printing. You have great cost savings, material efficiency, things like that, which architects are vastly interested in."

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£1,800: Britain’s grandest dog home?

Ivan Radford — Fri, 01 Mar 2013 12:36:00 GMT

Photo credit: Daily Mail

It's over 6 feet tall, took 84 hours to build and cost £1,800. Not bad for a kennel.

Wellington, a two year old St. Bernard, is very happy with his home, which his owner Julian Kite built out of bricks. The kennel includes carpets, working lights and even wall insulation, reports The Daily Mail.

The finished structure is a 1/3 scale replica of Julian's home - and takes up half of the garden.

But the Derbyshire resident was rewarded this month when insurance firm More Than's national competition to find The Pet Pad of the Year hailed Wellington's house as Britain's grandest dog home.

"Designing and building Wellington's house has been a hobby, so being rewarded in such a way is truly brilliant," he told the paper. "It's just the beginning though, by the time I've finished with his kennel I'll probably want to live in there myself."

Now, Julian has developed a business building luxury dog houses and bespoke kennels.

"It's exactly the same as a traditional house, the masonry, the foundations, a traditional cut roof, it's got electrics and external lights," he explained. "I made one for my own dogs, then friends started asking about them and I decided to do some more.

"I've done about 30 or 40 so far and things just keep picking up."

Moggy training: new invention lets cats use the toilet like people

Ivan Radford — Fri, 01 Mar 2013 12:22:00 GMT

Cats and houses have a long history. From fancy kitty homes to Japan's full-sized houses optimised for man's feline friend, kittens and real estate go together like cats and the internet.

Now, an inventor has taken that bond to a new level with a device that lets cats use the toilet - like a human.

Jo Lapidge was inspired by watching Meet the Fockers, reports The Daily Mail, a film in which a cat shares a toilet with Ben Stiller. The 48 year old Australian then built a training device from plant pots so her pet could do the same.

Now, the device is being sold worldwide for £40 in a move that saves homeowners across the globe from having to clear out litterboxes. The LitterKwitter comes with different-sized seats to help cats graduate from a litter tray next to the toilet to a disc that fits inside the toilet seat.

"After a few weeks Doogal was trained on the first of 15 prototypes and he became a much more civilised member of our family," she told the paper.

"Cats bury their waste to hide the smell, which in the wild can attract predators. A toilet-trained cat whose waste disappears into the water of the toilet bowl would experience the same psychological satisfaction as this."

"The LitterKwitter works best with kittens as they have fewer bad habits to unlearn," she explains, "but basically any healthy cat that can use a litter tray can be trained to use the toilet. Once a cat is trained it can use any toilet, but will naturally favour the one it was trained on."

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UK house prices up – Land Registry

Ivan Radford — Fri, 01 Mar 2013 11:01:00 GMT

Lending growth may have suffered a winter cool-down, but UK house prices increased by 1 per cent in January compared to December, according to the latest figures from the Land Registry.

The average house price in England and Wales is now £162,441, also 1 per cent higher than January last year.

The region in England and Wales which experienced the greatest increase in its average property value over the last 12 months is London with a movement of 7.1 per cent. London also experienced the greatest monthly rise with an increase of 2.5 per cent.

The North West experienced the greatest annual price fall with a decrease of 4.2 per cent. The North West also saw the most significant monthly price fall with a decrease of 1.9 per cent.

The most up-to-date figures available show that during November 2012, the number of completed house sales in England and Wales increased by 1 per cent to 61,091 compared with 60,369 in November 2011. The number of properties sold in England and Wales for over £1 million in November 2012 increased by 19 per cent to 657 from 554 in November 2011.

Repossession volumes decreased by 11 per cent in November 2012 to 1,589 compared with 1,777 in November 2011. The only region to see an increase in repossessions is Wales with an annual increase of 21 per cent (November 2012 compared with November 2011).

David Newnes, director of LSL Property Services, owners of Your Move and Reeds Rains, comments: "The property market is more buoyant than at any point since the financial crisis. House prices have been rising steadily, repossessions have fallen in 90% of the country, and more first-time buyers are getting mortgages. Stronger funding conditions are the driving force behind the improvement. The Bank of England's Funding for Lending Scheme has pumped cheaper funds into banks' balance sheets, allowing them to roll out a raft of cheap mortgages. It has allowed them to offer a wider range of mortgages to a wider pool of borrowers. The big winners have been high LTV borrowers. If lenders continue in the same vein, 2013 could well be a watershed year, marking the point when the first-time buyer market began to recover. succeed by focussing on those at the bottom tier of the market, with better value mortgages for first time buyers, the housing market more chance the housing market will have to spring back into recovery and lift the long term health of the housing market."

Buy-to-let yields: Where are the real UK hotspots?

Ivan Radford — Fri, 01 Mar 2013 10:47:00 GMT

More and more investors are flocking to the buy-to-let market as figures reveal that the UK's rental boom is continuing. With existing landlords expanding portfolios in search of higher returns in stagnant economic conditions, gross rental yields have never looked more attractive.

But, warns Home.co.uk, it is important to understand what the real UK buy-to-let yields are by taking into account the changing value of the investment property.

The latest study from the property website assesses the impact of changing capital values to produce a more realistic view of rental yields and the real investment potential.

Where are the real UK hotspots? London, according to their findings, with Shoreditch leading the way with a "real yield" (rent + capital appreciation of the underlying asset) of 36.55 per cent:

Click here to see the full-sized table

Doug Shephard, director at Home.co.uk, commented: "Most landlords appreciate that gross rental yields do not take account of the costs of maintaining, letting and insuring a property, yet many fail to consider the rise and fall of capital values in this equation."

"Whilst we would expect the key rental hot spots to typically mirror economic activity across the country, the big revelation in this new research is that the highest real yields are all in London. Despite the initial high capital costs, the combination of accumulating capital value and reasonable gross yields can make these areas look very attractive to potential investors."

"It's also important to note that these top-performing areas are all in central London, a specialised sub-market of the wider UK property market and one where many of its residents have survived the recession well. The people who reside in such areas have maintained their employment status and continue to enjoy a successful career path. Key demand drivers are equally about easy access to work and social networks. Shoreditch is a perfect example and the consistent high demand for such properties has kept both sales and rental prices on an upward trajectory."

"Given our new take on yields, at the other end of the scale there are areas of the UK where landlords are losing money just by owning the property, even if their properties not subject to void periods and attract healthy gross yields."

The real yield for Margate, for example, is a nightmarish -9.8% despite a gross rental yield of 5.1%.

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Battersea Power Station boosts New Year house-building figures

Ivan Radford — Fri, 01 Mar 2013 10:34:00 GMT

The UK house-building industry enjoyed a buoyant start to 2013 with new home registrations up nearly 30% compared to the same time last year, new data from NHBC reveals today.

The organisation's first monthly statistics of the year show that 10,112 new homes were registered around the country in January 2013 compared with 7,831 in January 2012.

The landmark Battersea Power Station redevelopment helped boost the January figures, as more than 800 new properties were registered during the first phase of the project. Over the next 15 years, more than 3,000 new homes will ultimately be built on this iconic London site.

Comparing the rolling quarter, the most recent figures up to and including January 2013 show an 18% increase (November ‘12 - January '13: 24,999) compared to the same three month period the previous year (November '11 - January ‘12: 21,110).

NHBC Commercial Director Richard Tamayo said: "We are heartened by the encouraging registration statistics for January which follow a strong end to last year.

‘The month's figures were boosted by the high-profile Battersea Power Station redevelopment as well as an increase in the number of mixed-use developments. This will be a welcome bit of New Year cheer for house-builders up and down the country.'

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Insurance recommended amid surge of new landlords

Ivan Radford — Fri, 01 Mar 2013 10:27:00 GMT

It has been reported in recent weeks that more people are choosing to rent instead of buy as they seek to sidestep the complications of the housing market in its present state. As a result, it is expected that buy-to-let landlords will go on a spending spree this year in order to meet demand. However, the team at Landlord Insurer is keen to stress the importance of the right cover for new landlords.

Property website Rightmove is predicting that professional landlords will expand their property portfolios this year, while the number of new landlords venturing into the market is also on the rise. This means that the rental market is set to grow even further, but landlords are advised to protect themselves and their tenants by having the right insurance in place.

Landlord insurance policies are designed to help landlords cover all manner of material risks, including contents, building, alternative tenant accommodation expenses, loss of rent, legal cover and property owners' liability, and they are seen as an essential cost for professional and non-professional landlords.

Although this sort of cover is not a legal requirement, it is recommended because of how it differs from homeowners' insurance. As such, experts like the team at The Landlord Insurer advise that so-called 'virgin landlords' take out appropriate cover when they address all the other legal requirements associated with becoming a landlord, such as obtaining a gas safety certificate and an energy performance certificate each year.

MPs are concerned that the state of the housing market will lead to an increase in the number of rogue landlords letting their properties without the proper regulatory checks and without a responsible attitude towards insurance and property standards. Obtaining appropriate cover is thought of as a good way to demonstrate the legitimacy of a new property venture.

Value of money falls by two-thirds over the past 30 years

Ivan Radford — Thu, 28 Feb 2013 10:31:00 GMT

The value of money has fallen by 67 per cent in the past 30 years, according to Lloyds TSB Private Banking.

The lender's research, using data from the Office for National Statistics, reveals that £1 million in 1982 would provide the same spending power as £3 million today. At the same time, the average price of a detached house is now six times higher compared with 1982.

A three-fold increase in retail prices means that someone today would need £299 to have the equivalent purchasing power of £100 in 1982. Conversely, £33.46 in1982 would provide the same spending power as £100 today. This means that someone would need £3 million today to enjoy the equivalent lifestyle of a person with £1 million in 1982.

The purchasing power of money has eroded at an average rate of 3.7% a year over the past 30 years. This is reflected in the changing cost of everyday items during this period. Based on calculations by Lloyds TSB Private Banking1, the prices of essential household items have risen substantially since 1982 with, for example, the average price for a loaf of bread increasing from 37p in 1982 to £1.24 in 2012; a more than three-fold rise.

The average price for a detached property has risen approximately six-fold over the same period from £45,211 to £273,7002, while a troy ounce of gold has risen by 439% from £203 in 1982 to £1,096 today. Similarly, fuel costs have also risen substantially with diesel prices now 294% higher than in 1982, while the price of coffee has risen by 176% from an average price of 97p to £2.68.

By decade, retail prices rose most rapidly between 1982 and 1992, increasing at an average annual rate of 5.5%. In contrast, the lowest inflation occurred between 1992 and 2002, with retail prices increasing at an average annual rate of 2.4% during the decade. Between 2002 and 2012, retail prices rose at an average of 3.3% a year.

Looking to the future, if retail prices were to rise by 2.8% annually3, the value of money would decline by a further 56% over the next 30 years. In this event, someone would need £229 in 2042 to have the same spending power as an individual with £100 today - or nearly £2.3 million to enjoy the equivalent lifestyle of a person with £1 million today.

Nitesh Patel, economist at Lloyds TSB Private Banking, commented: "The value of money has fallen substantially over the past 30 years as retail prices and the cost of many everyday items has soared. Someone today would need nearly £300 to have the same spending power of £100 in 1982, meaning someone breaking the million pound mark 30 years ago would have the equivalent of £3 million today.

"Looking to the future, even if inflation is kept firmly under control and rises only in line with the Government's target, it is likely that the value of money will continue to reduce significantly and decline by more than half its value by 2042."

We need a Budget for energy-efficient homes, FMB warns Chancellor

admin — Thu, 28 Feb 2013 10:30:00 GMT

The Budget must include measures to make Britain's homes more energy-efficient, boosting the construction industry and helping householders protect themselves against rising fuel bills, the Federation of Master Builders (FMB) has warned in a letter to the Chancellor.

Brian Berry, Chief Executive of the FMB, said: "By 2016 9 million British households could be in fuel poverty. We need action now to help get Britain building towards growth, and independent economists estimate that diverting funds into a massive public-sector programme to improve the energy-efficiency of Britain's existing 26 million homes would boost GDP by 0.2%, create 130,000 jobs and help the Government meet its own targets for cutting carbon emissions."

Berry continued: "We also want ministers to rethink the unrealistic timeline for zero-carbon homes, which was set back in 2006 before the economic slump. Our own survey of smaller housing developers found that the proposals to change Part L of the Building Regulations in October this year could add more than £3,500 to the cost of building a new house. This will discourage even more developers from building new homes, further exacerbating the desperate housing shortage and locking low and middle-income buyers out of the market."

Berry concluded: "Finally, we need to see a cut in VAT from 20% to 5% on home renovation and repair. Britain's ageing housing stock is deteriorating as home-owners can't afford to get work done. Families are trapped in a vicious cycle, in which they can't afford to move and planning red tape makes it harder to alter their homes to meet changing need. Cutting VAT on renovation and repair would give a shot in the arm to beleaguered builders, create jobs and encourage householders to make their homes more comfortable, affordable and energy-efficient."

To read the full draft of the letter from the FMB to the Chancellor, click here.

New homes market sees strong start to year

Ivan Radford — Thu, 28 Feb 2013 10:19:00 GMT

The average price of a new home increased by 1.1 per cent in January, according to SmartNewHomes, as the new build market exoeriences a strong start to 2013.

The average price of a new home in the UK is now £232,022, a rise of 0.4 per cent over three months and 1.4 per cent higher than last year.

Prices in the new homes market have remained relatively stable in the last 12 months, fluctuating just £9,940 compared to £22,175 in the wider market. Demand for new homes has pushed prices slightly higher than those in the wider market, driving a return of the new home ‘premium'.

The South West recorded the biggest monthly price rise in January at 2.1%. The region also recorded growth of 4.0% over the quarter and 2.9% on an annual basis. This contrasts with Yorkshire and Humberside which saw prices dip 1.7% during the first month of the year. In all, the more southerly regions continue to perform the strongest in terms of price growth.

Commenting on the data, Steven Lees, Director of SmartNewHomes, said:

"The housebuilding industry has had a positive start to 2013, with pent up buyer demand for new homes at the end of last year underpinning price growth in January. Confidence in the new homes market is also exhibited in strong annual price growth of 1.4% recorded last month.

"However, the issue of supply remains the biggest issue facing the industry. Although there were more new homes available to January buyers than the same time last year 2012's total output was 11% down on the previous year according to the latest figures from the DCLG. We hope the Government follows through on its promise to cut red tape and ensure that changes to speed up planning decisions are pushed through regionally, translating into an increase in housebuilding levels."

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2013 to herald an increase in UK regional office demand

Ivan Radford — Thu, 28 Feb 2013 10:18:00 GMT

Although the UK economic recovery remains patchy there is some cause for optimism in the regional offices sector according to Jones Lang LaSalle's latest Big Six seminar, which took place this morning and covers the markets of Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester.

Commenting on the research findings at the seminar, Jeremy Richards, director in Jones Lang LaSalle's National Office Agency team, said: "Consumer income is reviving and as a result, regional office employment is expected to pick up from 2014 onwards leading to an increase in demand for office space. Take-up volumes across the Big Six markets totalled 3.2 million sq ft in 2012, up 4% compared to 2011. The total number of deals was also up, however there was a reduction in the number of larger deals with just 53 deals over 10,000 sq ft compared to 57 in 2011. The picture remains mixed however, in terms of office take-up with considerable regional variation. Edinburgh was the strongest performer in 2012, as the only market to witness any City centre pre-letting activity and Grade A take-up volumes up 60% year on year. In contrast Bristol saw Grade A activity fall 80% year on year and a lack of larger deals."

Jeremy Richards continued: "Encouragingly we are beginning to see more movement in the way of development activity with a number of schemes already under construction and a number due to start on site in 2013. Our requirements data is also positive. Looking at just the top five requirements in each of the Big Six markets there is a total of 1.7 million sq ft of active enquiries, with an average requirement size of around 60,000 sq ft."

Simon Merry, director in Jones Lang LaSalle's National Office Investment team, added: "Investment volumes were down significantly in 2012, but there is expanding market activity in the regions given its relative pricing when compared with London and the South-East and other Cities worldwide.

In 2012, overseas investors accounted for over 60% of all investment transactions and we are increasingly witnessing global money targeting the regions and a strong motivation to buy."

Mark Wilson, Director of Capital Markets, Jones Lang LaSalle, concluded: "With prime regional office yields now offering between 250/300 bps margin over other locations within the UK it is anticipated that there will be considerably more UK institutional activity during 2013. Furthermore with encouraging occupational sentiment and attractive running yields we expect demand from property/opportunity funds to be a major influence over the course of the next 12 months. Overseas investors priced out of London and the more expensive European cities are likely to find favour in good quality real estate in the regions which offers quality covenants in a favourable currency environment."

Cash purchases down in prime Central London

Ivan Radford — Thu, 28 Feb 2013 10:16:00 GMT

Public and political pressure to rein in bonus culture and a lacklustre lending performance from the banks, has dramatically changed the way property purchases are being financed in prime Central London, reveals Cluttons in its Residential Property Forecasts Q1 2013. The proportion of mortgaged buyers rose from 25.8% in 2011 to 51.8% in 2012, while cash buyers dropped from 74.2% in 2011 to 48.8% last year.

The continuing taboo surrounding bankers' bonuses, along with the Chancellor's looming threat of a break up of the banks into separate retail and corporate entities, has translated into a huge reduction, or in some cases eradication, of bonus schemes. This trend is expected to intensify over the coming months, particularly if the hotly debated EU bonus cap becomes law.

In addition, concerns of an all out Eurozone collapse, which drove investors to plough cash into the ‘safe haven' of the London property market throughout 2012, have abated. This, combined with the reduction in cash bonuses, has dented the appetite of the City's young professionals to make Central London residential investments and has resulted in a significant reduction in the number of registered cash buyers in the prime Central London market.

However, overall demand remains strong and first time buyers and other mortgaged working households have stepped into the market with growing confidence, competing for a scarce number of assets. Even more secondary properties are seeing heightened interest in some submarkets, particularly those outside the prime core such as Clapham, Islington, Highbury and Canary Wharf, as frustrated buyers close deals on homes with the most ‘upgrade potential'.

Central London's advancing transport infrastructure, including the extended East London Line, is playing a part in opening up new areas to buyers, such as the submarkets that sit between the City and Canary Wharf. International investors also continue to target London residential property, capitalising on the weakness of Sterling, further depleting supply.

Sue Foxley, head of research at Cluttons, says:

"Banks are facing pressure from regulators, Government, shareholders and the public to clean up their act, which has resulted in a softening in the big bonus culture. The severely limited supply of property in the prime Central London market means that that this has had limited impact on prices to date, with overall demand remaining healthy. However, we are seeing a shift in the profile of buyers as first-time buyers and mortgaged households have stepped into the market."

Cluttons predicts that prime Central London will record a 4% increase in prices this year, followed by a further rise of approximately 4% per annum between 2014 and 2017. This compares to a marginally negative (-0.3%) wider UK housing market this year, with modest growth of 1% expected in 2014. The prime Central London lettings market is also entering a phase of lower growth, with rent increases of 1.5% expected this year and almost 4% per annum forecast between 2014 and 2016.

Boiler beware! Don’t fall into hot water when buying a new home

Ivan Radford — Thu, 28 Feb 2013 10:15:00 GMT

Planning on buying a new home this spring? Viewing potential new homes can be an exciting experience but property refurbishment experts, BSW Building Services, is warning house hunters not to get distracted from unseen but serious potential issues with heating systems.

Freshly painted magnolia walls, a trendy new kitchen and the pressure of an estate agent who has "another five people lined up to put in offers", can be very persuasive in convincing home buyers to part with their life savings. However, industry experts BSW believe buyers should be more savvy about the potential costs that can come with buying a second hand property with a sub-standard heating system.

In particular, buying a home without realising its heating system needs replacing can be an expensive mistake to make. Installing a new heating system to a three bedroom semi detached home these days will cost around £5,000, an expenditure which many house hunters may need to take into account.

BSW has prepared a top ten check list to help house hunters assess the quality of a property's heating system, to ensure they are fully informed before putting in an offer:

1.   Look for whether the home has a floor standing or wall mounted boiler. If it is floor standing the likelihood is that it is at least 12 years old and will soon need replacing.
2.   Domestic chimney flued boilers can no longer be fitted. If the boiler has a flue pipe coming off the top of the casing it is an older inefficient model and will need replacing.
3.   How many pipes are coming out of the boiler? If there are four pipes it is likely that the hot water is on gravity which is an expensive way to produce hot water. If there are just two pipes it is a modern design.
4.   Look at the hot water cylinder - does it have a red plastic jacket tied around it? If so it pre-dates modern foam lagged cylinders. Leaking out useful heat from these early jackets costs more to run and is a waste of money - it needs changing.
5.   Have another look at the hot water tank, does it have a thermostat on the side? No control on hot water temperature = no good.
6.   Look at the radiators; do they have metal fins along the back of the radiators? No - then they are over 20 years old and need to be replaced.
7.   Do the radiators have thermostatic valves on them? These enable you to adjust the temperature in each room and are important for efficient operation.
8.   Old radiators can contain corrosion and limescale in which case putting a new high efficiency boiler on the system is pointless. The lifespan of a high efficiency condensing boiler is dramatically reduced by connecting it to old radiators and pipework.
9.   Look out for combination boilers which can be very efficient and effective in smaller properties but these boilers do not have hot water storage tanks and are only really suitable for homes with one bathroom. They provide a much slower flow of water and only allow one tap to run at a time. Filling a bath can be a lengthy process!
10.   Do not confuse ‘condensing' with ‘combination'. All newly installed boilers these days must be ‘condensing' A or B efficiency rated.

Clive Searle, Sales Director at BSW, believes checking the standard of a property's heating system should be a priority on every house hunters check list as he explains:

"Just because a property has central heating installed doesn't mean the house is well heated or that the system is functioning effectively. Heating systems are costly to replace, especially in older properties so it is important that buyers ask the basic questions. These include finding out when a system was installed and whether or not it has been regularly serviced, to help identify if a system is likely to need repair or replacing.

"An outdated heating system isn't necessarily a deal breaker on a home purchase but the cost of replacing it could be. If a property for sale needs a new system then I would advise home buyers to obtain a quotation for the work and discuss this with the vendor to see if an agreement can be reached to cover the costs."

Based in Scaynes Hill, just outside Haywards Heath in West Sussex, BSW's expert team of over 100 staff and operatives specialise in central heating installation, service and maintenance, as well as renewable energy solutions and asbestos treatment throughout the South-East.

BSW is approved by Gas Safe, OFTEC (oil), NICEIC (electrics) and HETAS (wood burning appliances). It is also accredited by the Energy Savings Trust and Microgeneration Certification Scheme (renewable energy systems) and is an active member of the Contractors Health and Safety Assessment Scheme and Checkatrade.com, which vets and monitors trade companies and services to help people avoid cowboy builders and rogue traders.

NewBuy figures are “encouraging”

Ivan Radford — Thu, 28 Feb 2013 09:58:00 GMT

The NewBuy figures are "encouraging", according to the Mortgage Advice Bureau.

The government's scheme, designed to make housing more accessible to first time buyers in the UK, helped 1,522 home purchases to be completed by 31^st December 2012 - a 238 per cent increase from the third quarter of last year.

Andy Frankish, MAB New Homes Director, comments: "Today's NewBuy figures are certainly encouraging - but the real positive is that this is still just an early sign of the scheme's potential growth over the next 12 months.

"In the first two months of 2013, we have seen our new build activity almost double in volume, and NewBuy is becoming the product of choice for people seeking higher loan to value (LTV) purchases. This has been boosted by the attractive rates in the market, and there are even better prospects with direct-only lenders planning to launch intermediary products.

"The fact that NewBuy can be used for part-exchanges means the scheme is now more viable for second-time buyers as well as new homeowners. We expect to see the rate of completions increase every quarter this year - so today's figures are only the start."

Looking for a new home in the UK? Visit NewHomes.UK.Net.

POLL: Do you trust estate agents?

Ivan Radford — Wed, 27 Feb 2013 15:37:00 GMT

A new Ipsos MORI survey has found that 24 per cent of people trust estate agents to tell the truth, compared to fewer than one in five (18 per cent) people who trust politicians. But it's not just MPs that inspire less faith: journalists and bankers are also ranked as less trustworthy than estate agents, with just 21 per cent believing what they say.

What do you think? Have your say below - or read the full story here.

Quipol

Estate agents more trusted than politicians

Ivan Radford — Wed, 27 Feb 2013 15:29:00 GMT

Photo credit: Chris Guillebeau

"Historic lows." "Prices going up." "In need of TLC." Several decades after the Property Misdescriptions Act, estate agents are still stereotyped as untrustworthy salesmen who will say anything to shift a house. But all that might be changing, as a new poll shows that the British public trust estate agents more than politicians.

The Ipsos MORI survey found that 24 per cent of people trust agents to tell the truth, compared to fewer than one in five (18 per cent) who trust politicians. But it's not just MPs that inspire less faith: journalists and bankers are also ranked as less trustworthy than estate agents, with just 21 per cent believing what they say.

Estate agents are famous for this sort of thing

Doctors top the league of most-trusted professions, with the confidence of 89 per cent of the public - a ranking that has stayed the same since Ipsos MORI's survey began in 1983.

Somewhat appropriately, some are sceptical of what the survey reveals, suggesting that estate agents' improved standing in the public eye is less a case of most trusted and more a case of least untrustworthy.

"I would hazard a guess that the poll reflects how low journalists have sunk in the eyes' of the UK public rather than a surge in love, trust and respect for property agents," comments Ashley Rigg of Global Edge.

Indeed, following Christ Huhne's guilty plea of perverting the course of justice, a third of the public (35 per cent) believe that this behaviour is typical of most or all MPs.

Gideon Skinner, head of political research at Ipsos MORI, said: "These results show once again the disconnect that exists between voters and their perception of the political elite. Rebuilding trust in our political system is a challenge that faces all parties."

Building trust in estate agents is an important part of the property industry too: confidence in agents is a major factor in whether buyers decide to go ahead and complete a transaction. With sales still struggling to increase in many countries thanks to the uncertain economic climate, trust is an even bigger motivator.

Only in markets such as America can strong real estate recovery genuinely be found, with prices, demand and sales all increasing - a fact supported by TheMoveChannel.com's Top of the Props, which has seen US property far outstrip its rivals for many months.

As for the others, we'll keep you posted in TheMoveChannel.com's daily news. You'll have to take our word on that.

Do you trust what estate agents say?

Vote in our poll below - or let us know what you think at Facebook.com/TheMoveChannel or tweet us @TheMoveChannel.

Quipol

Have you considered a new home in Worcestershire?

admin — Wed, 27 Feb 2013 14:23:00 GMT

Have you considered a new home in Worcestershire? Maybe it's time you did.

Say Worcestershire to anybody from the UK and they will most likely reply with "sauce". But there is more to this West Midlands county than just condiments. Next to Herefordshire and bordered by the Malvern Hills, Worcestershire is home to towns such as Bromsgrove, Malvern, Redditch and, of course Worcester.

The Malvern Hills, located in the south of the country, are a main component in the area's rural landscape, which ranges from farmland and hills to woodlands. Indeed, the beautiful countryside is so charming that it inspired The Shire in J.R.R Tolkein's The Lord of the Rings - a farm belong to his aunt was apparently the source of the name for his hero Bilbo Baggin's home, Bag End.

"Any corner of that county (however fair or squalid) is in an indefinable way home to me, as no other part of the world is," the author said of Worcestershire. Fortunately, you do not have to invent a fictional land of tiny hairy people to enjoy the pleasant surroundings: with new build homes popping up around the county, the opportunities are rife.

The economy is driven in part by its agricultural products - and, of course, by the now iconic sauce. In recent years, the factory works that produced the Lea and Perrins condiment have closed down. However, other products come from the county too, including the Morgan sports car.

With a popular reputation and several sites operating as satellites around the hub of nearby Birmingham, residents in Worcestershire benefit from the employment opportunities from commuting to the city, while the additional lifestyle activities boost the range of available pastimes.

Together, the towns add up to a vibrant, quaint corner of England that straddles traditional countryside and modern urban life.

For more on new build homes around the UK and for listings within Worcestershire, visit NewHomesUK

Women save more than men, says Halifax

Ivan Radford — Wed, 27 Feb 2013 13:06:00 GMT

Women are now saving more money than men, according to the latest Halifax Savings Barometer.

Female savers with Halifax have an average balance equivalent to 41% of their average annual gross earningsi, whereas men have an average balance of just 23% of their earnings - a difference of 18 percentage points.

While women in England and Wales earn £13,500 a year less than men on averageii, the typical savings balance held by female customers is now £8,211 compared to £7,699 held by men - a difference of £512.

The picture is the same across England and Wales, with women having more savings in proportion to earnings than men in all regions.

Women living in the South West have the highest average savings balance in relation to average earnings (49%), which works out at an average balance of £8,700. Men save the most in relation to earnings in the South West, and Wales (both 28%), which works out at an average balance of £8,344 and £7,601 respectively.

At the other end of the scale, male (18%) and female (30%) savers in London have the lowest savings in relation to earnings, where average balances stand at £8,032 and £8,600 (see Table 1).

Richard Fearon, Head of Halifax Savings, comments: "In recent years, people have become more aware of the need to put money aside in order to build a financial savings 'cushion'. Whether this is for a major event such as retirement or a wedding, or just for a rainy day it is important to save regularly where possible.

"However, while - on average - women earn significantly less than men the Halifax Savings Barometer shows not only are women outsaving men relative to their annual earnings, but they also have more savings in total."

At the end of December, the average savings balance for Halifax customers had increased 0.3% to £7,896iii from £7,871 three months' earlier.

The largest average balances are held by savers in the South East (£9,316) and East Anglia (£9,283). Whereas the lowest average savings are in the North (£7,408); a fifth lower (20%) than in the South East.

The East Midlands (£8,452) and Yorkshire and the Humber (£8,084) are the only regions outside southern England with an average balance above the England and Wales average.

The ten Local Authority Districts with the highest savings balance in England and Wales are all in the south, as are over half of lowest savings balances. South Buckinghamshire tops the list for the highest average savings balance, at £13,762, which is more than three times that of Hackney - the lowest - at £4,246.

Six of the ten Local Authority Districts with the lowest balances are in the Capital (see tables 3 and 4), with savers in Hackney having the lowest average balance at £4,251.

Richard Fearon adds: "However much cash people can afford to put aside in savings, the most important thing is that it is working as hard as possible. Tax efficient savings vehicles such as ISAs can help people to make the most of their savings. By protecting your savings from tax it means you will receive greater returns.

"The current cash ISA limit is £5,640 and the overall annual ISA limit is £11,280. However, people need to be aware the deadline to use their 2012/2013 ISA allowance is approaching and ends on 5 April 2013."

Could FSA alerts hurt overseas property firms?

Ivan Radford — Wed, 27 Feb 2013 13:02:00 GMT

New alerts issued by the Financial Services Authority (FSA) may have ramifications for the overseas property industry, warns Global Edge.

The international real estate hub highlights an alert relating to the role of financial advisors in placing money into pension schemes that invest in "unregulated assets".

"Until now," explains Global Edge, "overseas property agents and developers with pension-compliant products could ask a regulated financial advisor to help transfer funds from one pension pot to another to transact the sale. The financial advisor would only have to advise on the transactions and the tax efficiency of the transfer without giving advice."

But the FSA has been investigating several firms that have been carrying out these practises, amending their Part IV permission to stop them operating in this way. Enforcement action may also be taken.

"We have seen an increasing number of Self-Invested Personal Pension (SIPP) schemes whose underlying investment is in an overseas property purchased through Harlequin Property, a UK based overseas property sales agent that is not regulated by the FSA," the FSA cautioned.

"When advising a customer to invest in any overseas property investment through the customer's personal pension or a recommended pension scheme, financial advisers have to ensure that they give careful consideration to the particular features of the investment in question," reads their statement. "This applies generally including in relation to advice on any overseas property investment sold by Harlequin Property."

"For example, if a financial adviser recommends a SIPP knowing that the customer will sell current investments to invest in an overseas property, then just how suitable the overseas property investment is must form part of the advice to the customer. If, having taken into account the customer's circumstances, the financial adviser believes that the original investment is more suitable for the customer than moving to an overseas property, then the financial adviser must explain why the investment in the overseas property via the customer's SIPP is not suitable for the customer."

"The change could see property sales sold through pensions half," AIPP board member (and founder of Intelligent Partnership) Guy Tolhurst tells Global Edge. "The impact is likely to be for investors with smaller pension pots. If someone for example only has £50,000 in their pension, it will be difficult for an authorized financial advisor to recommend putting more than £10,000 or 20% of it into an alternative investment or overseas property."

"Clients may be able to execute the pension and investment business themselves," he continues, "without a financial advisor, but how many pension providers will allow this route for these types of investments is unknown. This route has previously been abused by 'boiler room' type operations as investors are cajoled into opening a SIPP to invest in an illiquid asset with the promise of high returns or even pension liberation.

"The other option for is for an advisor to declare they have an ‘insistent client', who goes through their full advised process but insists on the route they want to take, essentially ignoring the advice and signing a document to say they want to proceed despite the best advice of the advisor. The issue of course, is that if things go wrong, clients can always claim they were coerced into signing to get compensation."

Scottish housing market remains muted

Ivan Radford — Wed, 27 Feb 2013 12:20:00 GMT

The Scottish housing market remains muted at the start of 2013, according to Lloyds TSB Scotland.

The lender's latest house price monitor for Scotland shows that house prices fell by 1 per cent in the three months to January to £151,320 - 89 per cent of their peak at the start of 2008. Prices have actually edged up on an annual basis and are now 0.2 per cent higher than a year ago, adds the report.

The price movement is another outcome from a market with a low number of transactions, explains the bank, with sales down by 17 per cent year-on-year, or 8 per cent on a three-month annual basis. As a result, prices are volatile.

But it's not all doom and gloom. Overall, sales of Scottish property actually increased at the end of last year, rising by 2.7 per cent in the final quarter of 2012 compared to 2011 and rising by 5.2 per cent in December year-on-year.

The growth is uneven, though, prompting prices to spike 11.5 per cent in Edinburgh annually to £211,247. On the other hand, in the south west, prices have dropped by 5.1 per cent to just £131,512.

"The Scottish housing market had adjusted to the recession with a halving of sales and a period of price volatility. There is evidence of a muted pick up in the number of houses bought and sold in the last quarter of 2012 with average prices now at 89% of their pre-recession peak," commented Donald MacRae, chief economist, Lloyds TSB Scotland.

"Consumer confidence turned negative at the beginning of 2011 and remained negative for 21 of the 24 months to the end of 2012. The latest figure for quarter four 2012 shows a return to negative territory. Consumer confidence remains low with the level of retail price inflation exceeding the average increase in earnings squeezing disposable income. The rate of increase in consumer spending remains modest.

"There is some indication of a modest pick up in housing market activity at the end of last year. Mortgage availability has increased, however prices have remained virtually static while the economy is showing tentative signs of modest growth. The Scottish housing market remains largely muted entering 2013," he concluded.

4 in 10 landlords expect tenant demand to rise

Ivan Radford — Tue, 26 Feb 2013 15:45:00 GMT

Photo credit: Boyce Duprey

4 in 10 landlords predict that tenant demand will increase in 2013, according to new research.

Indeed, while it is now £120 a month cheaper to buy a home in the UK than rent, according to Halifax, concerns over job security and difficulties raising a deposit remain severe obstacles to people buying their own home. As a result, 41 per cent of landlords are expecting demand to rise, according to a survey by Paragon Mortgages, while just 6 per cent think it will fall.

The optimistic outlook is backed up by consistently strong yields achieved by landlords, with an average of 6.5 per cent reported to the mortgage firm.

Rental yields actually dipped in the final quarter of 2012, according to another survey by BM Solutions/BDRC Continental, falling by 0.5 per cent to 6.2 per cent. However, rates still remain consistently strong, led by the East Midlands, where landlords achieved an average return of 7.1 per cent.

On top of steady yields, landlords also benefitted from smaller tenant arrears: in the final quarter of 2012, on average 2.4 tenants were in arrears, a fall from 3.3 in the third quarter of 2012 - the proportion of landlords experiencing rental arrears since the second quarter of 2010.

Void periods also dropped to the lowest level for over 12 months in December, with only 33 per cent of landlords reporting void periods in the fourth quarter of 2012, 13 per cent lower than the same period in 2011.

The trend is continuing into 2013, according to LSL Property Services plc, who found that the total amount of rent late or unpaid in January fell back to levels not seen for three months. Total arrears last month were £261m, down from £326m in December. This equates to 8.1% of all rent across England and Wales, while December's arrears represented 10.1% of all rent.

Tenants are being given breathing space by falling rents, with rates edging down again in January to an average of £732 per month, according to LSL's research. But while rates are experiencing a seasonal slowdown, rents remain 2.8 per cent higher than one year ago.

On an annual basis, rents in London saw the fastest growth, rising by 5.2% ‐ an increase of £54 per month. The South East saw the next biggest annual rise, with rents 3.5% higher than last January.

David Newnes, director of LSL Property Services, owners of estate agents Reeds Rains and Your Move comments: "An improving mortgage market in January helped take a little pressure off the limited supply of rental property, at a time when the demand from tenants on the move is far from its seasonal peaks. But the dip in competition is not likely to last long. The pace of the fall in monthly rents has slowed, and we're already seeing tenant activity pick up. The private rented sector is coiled for a spring bounce, and without a sudden widening in the supply of accommodation, rents are likely to resume their climb in fairly short order."

With yields strong, void periods down and demand set to keep climbing, 15 per cent of landlords are now planning to expand their portfolios this year as buy-to-let is seen as a reliable investment for the future, according to Paragon Mortgages. Indeed, 84 per cent now view their rental property as a supplementary income to their pension, with six out of 10 of these landlords actively planning to live off the rental income at retirement.

John Heron, Managing Director of Paragon Mortgages, said: "2012 was a good, steady year for landlords. They continued to invest in their property portfolios, albeit at a slower pace than needed for the PRS to cope with increasing levels of tenant demand.

"Void periods throughout last year remained low as they have done for some time now, and the average yield landlords achieved on their portfolios was healthy. The next 12 months will be very interesting for the PRS and the buy-to-let market, there will be continuing progress and we will hopefully see confidence levels increase even further."

Looking to expand your property portfolio?

Browse our listings of buy-to-let property:

http://investment.themovechannel.com/property/buy_to_let

Remortgage market stays subdued in UK

Ivan Radford — Tue, 26 Feb 2013 14:55:00 GMT

The remortgage market stayed subdued in the UK at the end of last year, according to Lloyds TSB.

The lender's latest report shows that remortgaging activity was 24 per cent below 2008 levels at the end of 2012, although since the end of last summer there has been a slight revival in activity, rising by 7 per cent in the fourth quarter compared to the previous three months.

Indeed, according to the latest analysis from Lloyds TSB, borrowers may no longer be better off staying on standard variable rates (SVRs). Since late 2008, falling SVRs lessened the gap with fixed rate mortgages and significantly reduced the incentive for many borrowers to remortgage. However, given the recent fall in fixed rates, some homeowners may find a better rate by remortgaging.

Whilst the total number of remortgages in 2012 was 12% lower than in 2011, the 7 per cent increase recorded was a promising sign of improvement

Historically, remortgage activity has typically been driven by borrowers replacing their fixed home loans at the end of their term to avoid moving on to an SVR. This is because SVRs, on the whole, were more expensive and brought uncertainty over future monthly payments. However, this changed in recent years as interest rates fell to an all time low.

Even though SVR rates have generally been higher than fixed rates since August 2011, remortgaging activity on the whole has remained subdued, averaging 29,700 per month (37% of total mortgage lending). Over this period, the average SVR rate was 24bps more than average fixed rates (Fixed rates 3.96%; SVR 4.20%).

With fixed rates falling since August 2012, the incentive to remortgage should have increased. For example, if a homeowner took out a 2-year fixed rate in December 2012, their monthly payment would be £519; in the same month the payment on an SVR mortgage would have been £548.

Stephen Noakes, Mortgage Director at Lloyds TSB, comments: "With SVRs at historically low levels, many homeowners have actually found their mortgage payments have reduced at the end of their term and the incentive to remortgage has been reduced. However, as we start to see fixed rates dropping, prudent borrowers taking stock of their home loans could benefit from their monthly payments falling further.

"The Lloyds TSB switching service guarantees to take the hassle out of remortgaging. With our new rates and £500 cash back for Lloyds TSB current account holders, now is the time for homeowners to consider the benefits of remortgaging."

Need a mortgage for your overseas property?

Find out more about the mortgage services available through our dedicated channel:

http://mortgages.themovechannel.com/

Sell My Property Tips: Can social media help you sell your house?

admin — Tue, 26 Feb 2013 14:36:00 GMT

Can social media help you sell your house?

It's a question lots of homeowners are asking themselves as social networking sites become increasingly important in the real estate marketing industry.

Buyers already expect more from estate agents and property portals after getting used to a real-time online presence around the clock from friends, family and companies. With house hunters enjoying a more informal platform for finding a home, private owners can take advantage of the lack of a middle man and engage with potential buyers directly.

How can social media help you sell you house? Sell My Property gives some top tweeting tips:

•1. Don't sell

If you're starting on Twitter now, the last thing you want to be doing is selling. You've got to change your whole methodology of thinking. You need to engage and interact. Some company Twitter accounts don't even mention their own products, they just quirky cartoons or photos and you want to be following because it makes you laugh.

•2. Make sure you're worth following

Companies such as @WaterstonesOxfordSt and @Innocentdrinks spend their day posting jokes and amusing pictures to entertain their followers, ensuring a strong relationship with their consumers. "Sometimes we just sit back and relax, safe in the knowledge that our store will be one of the best places to go after a devastating pandemic," Waterstones tweeted today. "We look at the Adidas store and laugh. Sure, trainers will be useful in a post-apocalyptic world, but will they teach you how to grow food?"

•3. Be original

There are over 200 million people using Twitter. In a crowd that big, originality stands out. Not necessarily jokes and pictures, but something different. One seller's son in the US set up a Twitter account solely dedicated to a single property: @IAMAHouse1. "My owners just hung mistletoe in my foyer. With all the kisses going on around here, gotta admit I feel a little used," the house tweeted in December 2011, building up an amusing, accessible way to boast about its appearance and features.

Another private seller in Australia took the same approach, creating @NorthcoteHouse, an account that boosted the number of attendees to the property's auction and leading to a sale. @IAMAHouse1 had similar success:

•4. Be active

Social media allows you to be contactable at all times of the day: not just office hours. One house hunter and property marketing expert, Charlotte Ashton of AB Property Marketing, told TheMoveChannel.com about her experiences with an estate agent: "I was looking for a house and I arranged to do a couple of viewings with an estate agent before work. I made sure I was there before 8am and he didn't show up. I couldn't get hold of him - the mobile number, office numbers didn't work - so I went on Twitter and within five minutes I got a reply. And at the end of the day, the MD of the whole company got in touch to apologise!"

•5. Connect with people

As well as connecting with potential buyers, bigger companies or social media accounts can also give you a much-needed helping hand. "Lots of journalists use Twitter as a tool to find stories because it's more immediate than press releases or emails," points out Charlotte.

Another avid Twitter user, @RightmoveAddict, told TheMoveChannel.com how her profile shot up thanks to help from bigger companies, leading to the creation of her own real estate site: "It's the access to big brands that you've never had before. For example, Rightmove picked up on my name and they've become a big part of the business, sponsoring areas on the website. That never would've happened if it hadn't been for Twitter. On my personal blog, I also showcase properties that agents send me - these companies are forward-thinking and understand how social media can get their message out to an audience without using traditional methods."

If they can do it, so can you.

For more advice on selling your home and information on how SellMyProperty.org can help you, click here.

Investments Explained: Why commercial property can pay off

admin — Tue, 26 Feb 2013 13:56:00 GMT

When it comes to saving your money, commercial property may not be the top of your list: even if you're convinced that bricks and mortar are a safer bet than a bank account, buy-to-let is more likely to have your attention. But commercial property investment can pay off in dividends.

Commercial properties include anything that can generate income, from hotels and restaurants to bars and office space. But whatever you choose, the outlook is positive for the coming year, according to Legal and General Property.

The firm's latest report in 2013 suggests that economic growth is going to boost returns on investments, with yields expected to be around 6 per cent. Occupancy rates are predicted to grow, particularly for well-located buildings, as confidence returns to the market.

Property funds can still return around 4.5 per cent with relatively low risks, given buyers access to offices, shops and industrial properties such as factories and warehouses. Property securities funds, which invest money in companies related to commercial property, are also a reliable way to enter the market.

Aviva also agree that the future is bright for commercial property, with low real estate prices compared to other assets boosting demand as well as returns. Major cities in the UK as well as London are the main popular hotspots, with industrial property and offices outside of the capital the most likely to drive returns.

The UK remains the big player in hotel investments, accounting for 41 per cent of the sector in the top five markets during the second half of 2012. As a result, investment volume in 2012 reached a total of €2.5 billion - a sign that demand for commercial property is still growing. And with demand from tenants also expected to increase, the trend is only set to continue.

For more information on commercial property investment, visit TheMoveChannel.com

Commercial property returns predicted to improve this year

Ivan Radford — Tue, 26 Feb 2013 11:43:00 GMT

Returns from commercial property are predicted to improve this year, according to Legal & General Property.

The investment firm forecasts that UK commercial property returns will climb in 2013, with a continued polarisation between the best and worst performing assets.

Whilst 2013 economic growth is likely to remain sluggish, there are signs that property returns are set to improve, argues LGP. An easing in commercial real estate credit markets and the persuasive valuation case for UK commercial property should mean that prices for the market as a whole will be broadly stable in the next 12 months, in contrast to a fall of approximately 3% over 2012 (source: IPD Quarterly Index for all property). Total returns are therefore likely to be dominated by income return, currently at 6%. Given the attractive level of yield, whilst sentiment is likely to remain relatively volatile, LGP sees upside risk to medium-term total returns from a positive repricing of property as an asset class.

"Three key drivers underpin our more positive outlook for 2013," explains Director of Research Rob Martin. "First, central banks look determined to boost growth and this has fed through to our economic growth forecasts, which have been marked higher. This gradual improvement should translate into greater occupier confidence in bearing the cost of moving into modern, well-located buildings. But given relatively weak growth in absolute terms, the majority of new lettings are likely to be moves from substandard, poorly-located buildings rather than outright expansion.

"Second, there is evidence of an easing in commercial real estate credit markets. US and emerging market banks, insurance companies and debt funds are increasingly originating new debt capital to the sector and there has been a greater willingness amongst the UK banks to lend to commercial property in recent months. However, these positive signs must not be over played - appetite from new lenders remains very selective and is generally focused on originating low-risk loans secured against high quality assets."

"Our third driver for optimism on future returns is the valuation case," adds Rob. "The risk premium offered by investment in commercial real estate is comparatively attractive against historic averages."

Despite these more positive signs, LGP holds a strong view that conditions will remain highly challenging for certain property sectors and asset types in the medium term. Conversely, certain parts of the market offer better than average performance potential. Delivering outperformance for investors will be a blend of good strategic positioning and diligent stock selection and asset management.

"A number of subsectors which have been shunned by the risk adverse environment are now priced to deliver above-average returns. We favour the higher-yielding sections of the office and industrial markets, primarily outside of London. To ensure that assets can deliver, the focus is on those which by virtue of their specification, their local market and microlocation can find tenants through the cycle and do not depend on a robust economic recovery. Within London, opportunities to drive strong returns are set to be linked to a far greater degree to transport infrastructure improvements and particular occupier hotspots than has been the case in recent years.

"By contrast, we view the prospects for many retail property sub-sectors as below average, due to the challenges of e-retailing, the growing role of supermarkets in selling non-food items and the relative weakness of consumer spending. One of the key barometers of success will be ensuring that rents are priced at levels that allow retailers to trade profitably. We do, however, believe that the strength of the retail market in London, benefiting as it does from the growth in international tourism, is a sustainable long-term trend.

"We also see significant opportunities to invest in a wider spectrum of real estate assets, including student accommodation and health care. Among the advantages to these sectors is the availability of long, index-linked contracts which provide a good match for many investors' liabilities."

Looking to improve your commercial property investment this year?

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http://www.themovechannel.co.uk/property/commercial

Prime London property set to top Kong Kong

Ivan Radford — Tue, 26 Feb 2013 11:25:00 GMT

Not only is Prime London Central (PLC) a stellar performer in the context of the UK property market and other asset classes, but recent statistics from Knight Frank revealed that London's property market has topped some of the best international property markets as well. Significantly outperforming the likes of New York and Paris since 2009, only Jakarta, Hong Kong and Beijing, were said to show prices rising faster.

However, new data from London Central Portfolio shows that, when pitted against other major urban centres around the world over the longer term, PLC is not only a chief player, but a much more consistent and less volatile performer.

Top end London property has been a good addition to investment portfolios, not just over the recent credit crunch but over the past four decades. In the two most exclusive boroughs, the City of Westminster and the Royal Borough of Kensington and Chelsea, values have risen 9% per annum since 1996 and are up 42% since their pre-credit crunch low.

"Many commentators have likened this growth to a housing bubble waiting to burst, suggesting that the underlying growth trends are atypical and therefore unsustainable," says London Central Portfolio's report. "However, this view point is derived from, firstly, a mistaken view that PLC is correlated to the UK housing market, when in fact, PLC is no longer just the capital of the UK but rather a capital of the world.

"Secondly, it is based on a short termist view of the market. HM Land Registry statistics, have witnessed prices in PLC rising four fold since 1996 to £1,350,101 in Q3 2012. A staggering figure but actually demonstrating a steady 8.9% appreciation per year."

"With Singapore's performance lagging well behind and Manhattan's price growth all but flat lining, Hong Kong is the only major player to match PLC's price growth over the longer term," continues LCP. "Prices here are up 191% since 2000 compared to 182% in PLC. However, the market is exceptionally volatile bringing with it lucky winners and desperate losers. Both Hong Kong and Singapore's housing markets react dramatically in times of economic uncertainty and they saw prices plummet 50% and 77% respectively in one year, during the credit crunch. This compares with just 11% in PLC."

"With an already draconian US tax regime and significant changes to taxation on property in Hong Kong, Singapore and the UK, clearly none of the key global markets are out of harm's way," adds the report.

Indeed, Singapore recently raised Stamp Duty surtax on foreign and corporate buyers from 10% to 15%, only a year after it was first introduced. They also introduced an additional Stamp Duty, taxing their permanent residents between 5% and 7% across all price bands.

"Hong Kong's situation looks even more dire," argues the report. "In order to contain rising prices fuelled by rampant speculation and the influx of foreign investors, particularly from the Chinese mainland, the Government here have implemented a Special ‘seller's' Stamp Duty of up to 20% on the sale of short term owned properties. In addition they are introducing a 15% ‘buyer's' Stamp Duty on local and non-local companies. In light of the significantly increased taxes, prices look set to fall once again just as they did when the taxes were first introduced in 2010.

"The UK, too, saw additional taxes on property last year with a combined objective of revenue raising and disincentivising purchases through companies. The Chancellor increased Stamp Duty to 15% for companies and revealed plans to impose an annual charge of up to £140,000 per annum on properties held by these companies. This sent a frisson of uncertainty around the world for investors who had always seen the UK as a stable economic and political environment. The Chancellor's recent decision to exclude bone fide businesses from this tax rise, in recognition of the multi-billion contribution the sector makes to the UK economy, should bring in vital inward investment again.

"The Chancellor also increased Stamp Duty from 5% to 7% for people buying properties over £2m. This was inevitably a tax on London, where 77% of such properties are located. As a result, sales outside the two most central boroughs, where most domestic buyers are located, decreased in the £2- £5m sector by a staggering 57% last quarter. This resulted in a net loss of tax revenue which if extrapolated over the year would amount to £203m."

"As the Chancellor eyes up ways to increase the Exchequer's take in the next Budget," concludes the report, "he might feel the urge to copy Singapore and Hong Kong with further swingeing property taxes. It would be an all-too easy sleight of hand to increase Stamp Duty by 1% to 5% on properties over half a million and to 6% on properties over £1m.

"Hopefully, however, Mr Osborne will remember the lessons of last year and get his calculator out first. He will see that another rise in Stamp Duty could have a devastating effect on an already sluggish domestic property market and that a repeat of 2012 would result in a net fall in tax take of about £202m for an already beleaguered UK economy."

Looking for a capital UK investment?

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Lead Galaxy acquires Nubricks.com

Ivan Radford — Mon, 25 Feb 2013 14:18:00 GMT

Lead Galaxy has today added Nubricks.com to the roster of international real estate and investment portals that it owns outright, acquiring the business for an undisclosed sum.

The Nubricks site has been under the operational management of Lead Galaxy for a number of years, with the business purchasing 100% of the equity ahead of a planned redevelopment and re-launch later this year.

Director Dan Johnson commented: "As an early-stage dotcom business, the business has a strong domain history, memorable brand and a good base of inbound links to provide a platform for a renewed focus on SEO.

"We're pleased to be in a position to take Nubricks forward and are looking forward to re-launching the business as a destination site for international new home sales. There is still a lot of interest in completed or off plan developments, particularly in urban and resort destinations around the world. The new site will add a new dimension to our portfolio of brands and help enhance our offering for developers."

For more information on Lead Galaxy's real estate lead generation, click here.

Garden size is number one compromise for homebuyers

Ivan Radford — Mon, 25 Feb 2013 12:18:00 GMT

More than a third of homebuyers in search of their dream home are willing to compromise on garden size, according to Move with Us.

The residential property experts' survey reveals that potential homebuyers are most willing to compromise on the size of their garden when looking for a new home, closely followed by a downstairs cloakroom.

The survey was conducted among independent estate agents from the Move with Us Partner Network and found that nearly 40% of estate agents noted that the size of a property's garden was the first thing to be forfeited when buyers were purchasing a new home.

A downstairs toilet was next on the list with 33.5% of agents highlighting that potential homeowners are willing to sacrifice this in order to secure the right property. Location came in third at 15.4%, followed by the availability of parking at 9.3% and the number of bedrooms at 2.7%.

The survey also found that the number of property viewings that homebuyers completed before buying their new home has also increased. The average number of properties a buyer has typically viewed before buying in the last six months is between 11 and 15.

Robin King, Director at Move with Us, says: "It is likely that the rise in the number of viewings that people are undertaking has grown as a result of the average move cycle increasing to every 20 years or so. People are moving less often now so they aren't as willing to compromise and are taking more time to find the right property. We may see this change in 2013 if more buyers return to the market and lending criteria becomes more relaxed.

"In the meantime estate agents should help manage the expectations of their customers so they understand what they can afford in their chosen area. The perfect home rarely exists so it is important to help them to prioritise their ‘must haves' and their ‘maybes'. Ultimately, having a set plan and clear criteria can save both the estate agent and the customer time and money in the long run."

Winter weather sees mortgage approvals dip in January

Ivan Radford — Mon, 25 Feb 2013 12:16:00 GMT

In January, mortgage approvals for house purchase were 14% lower than in January last year, according to BBA.

The BBA's latest report attributes the dip to the impact of the weather on housing activity.

2012 ended with reports of more first-time buyers looking to enter the market, which will help mortgage chains in due course. The average house purchase approval dropped to £145,300.

Approvals in January for remortgaging and other loans were some 28% and 36% respectively lower than in January 2012.

Personal deposits rose by 6.2% over the year to January, adds the report, while net mortgage borrowing from the banks grew by 0.2% in the year to January.

The outstanding level of unsecured borrowing contracted by 1.6% over the year to January. Within that, credit card mortgage borrowing rose by 5.5% but was more than offset by a contraction of 7.0% in personal loans and overdrafts.

Gross mortgage borrowing of £7.7bn in January was above the recent monthly average.

Historically, the difference between gross borrowing and capital repayment produced positive net borrowing data each month. With lower levels of gross borrowing and high capital repayments being maintained as a benefit of interest rates remaining low, net borrowing gradually reduced to a flat balance through much of 2012.

BBA statistics director, David Dooks said: "January's severe weather impacted adversely on what was already a subdued picture of borrowing demand from households and businesses. While general economic growth stalls, low consumer and business confidence generates a natural tendency to restrain borrowing appetite, repay borrowing where possible and to build up cash and savings as a buffer."

Paul Hunt, managing director of Phoebus Software said: "Despite the economic downturn, the mortgage market is remarkably robust with above average gross mortgage borrowing. There are huge barriers to greater mortgage lending facing the market, not least demanding funding conditions. That is making it tough for lending to return to the levels we experienced during the pre-credit crunch era. But there are rays of optimism. The number of first time buyers flocking to the lending landscape is climbing. That's thanks to lenders, who are taking a central role to boost activity. Despite the constraints they are operating under, they have unlocked the gates to deliver a wider range of impressive mortgage deals and better value products to attract first time buyers. Loan affordability is better, competition is greater and the Funding for Lending scheme is also helping inject energy into the market to make up for the knock on effects caused by a flat economy."

Mortgage rate war fuels bumper January sales lending

Ivan Radford — Mon, 25 Feb 2013 12:07:00 GMT

Average rates for two and five year fixed mortgages are predicted to dip below 4% by the end of April, as the National Mortgage Index from the Mortgage Advice Bureau (MAB) - the UK's leading independent mortgage broker - showed unprecedented interest in fixed rates from borrowers.

More than nine in ten purchase (93%) and remortgage (92%) applications in January 2013 saw borrowers opting for fixed rates. Using data from more than 500 brokers and 800 estate agents, the Index also saw the average loan to value (LTV) for remortgages climb back to its highest point (59.2%) since October 2011, as borrowers higher up the LTV curve benefitted from the lender pricing war.

Despite the influx of lower priced deals, house buyers typically had dig deep to find more than £6,000 extra for their deposits than in January 2012. Buyers in January 2013 also took on an extra £12,000 in mortgage debt, compared with the same time last year (see below).

The overall growth of purchase deposits has been driven by a hefty rise for homebuyers in London, who put down an average of £23,179 extra as a deposit in January 2013 than they did last year. This increase alone represents more than a third of the typical buyer's salary (£68,205 - Jan 2013).

Even discounting London, the average purchase deposit across England has increased by £2,267 in the last twelve months, with only two regions - the West Midlands and East Anglia - seeing average deposits fall.

Descending mortgage rates saw two-year fixed deals reach 4.26% in January 2013 - their lowest level since December 2011 (4.24%). At 4.47% and 4.27% respectively, average three and five year deals have not once offered better rates since MAB began tracking this data in summer 2007.

New year launches meant the average number of available products increased slightly in January, up by 1% to 8,716, driven by a 3% rise in direct-only products to 2,427. Overall applications activity for the month within the MAB network was up by 17% on January 2012, with purchase cases up by 18% and remortgage cases by 14%.

Brian Murphy, head of lending at Mortgage Advice Bureau, comments:

"Generous helpings of Government funding mean lenders are showing more appetite for risk, which is a godsend to anyone wondering where they will find the money for a deposit. The best deals are available at low LTVs, but as that space becomes increasingly crowded, lenders are open to offering better rates in return for less up-front investment.

"There has been little to get excited about around remortgages until recently, and just 12 months ago you would struggle to find a deal lower than 5%. Now they are closer to 4% and people looking to remortgage will be pretty pleased with the options open to them.

"We're looking at an abnormal rate environment compared to the past, with a tiny difference between average two and five year deals. By the end of April, we fully expect the average to dip below 4%, and there has never been a better outlook for mortgages borrowers who tick all the boxes."

Tips on spring-cleaning your home for a seasonal sale

Ivan Radford — Mon, 25 Feb 2013 12:02:00 GMT

The days are gradually lengthening and the first bulbs are beginning to make a tentative appearance in the garden - which can only mean that spring is finally on its way.

And spring is traditionally the time to get serious about selling.

But with like-minded sellers and buyers taking advantage of the impending change of season - competition could become fierce.

So, how can a seller have the edge over the neighbouring For Sale board and attract prospective buyers to their property?

With a little common sense, a clear mind and the goal of selling your home - a virtually cost-free mini makeover could make all the difference.

Estate agents Harrison Murray have some tips for giving your home a seasonal overhaul in preparation for that spring sale.

Clutter control

Spring is the perfect time to de-clutter your home and make some space (or at least give the illusion of more space). In preparation for viewings, pack away any items that may makeyour home look crowded. Potential buyers will want to imagine themselves in the property with their belongings. Ensure any drying laundry is hidden from view, and if you use part of your home as an office, clear away any paperwork.

Looking good - inside and out
As well as considering a neutral look for the interior of your home, with an all over lick of magnolia or something similar, think about the exterior of your property. Check and repair any garden gates or fences, paint window frames and clean window panes, clear paths of weeds and make the entrance to your home inviting with some freshly planted pots . Giving your home kerb appeal is the first step to engaging with a buyer.

Keeping it simple
Less is more, as the saying goes. A few strategically placed throws and rugs to tone down patterned sofas or carpets will bring older interiors up to date. Create some optical illusions by placing furniture at angles around the room.

Points on pets
Your pet may be your pride and joy, but eliminate doggy or pet odours, and give carpets and sofas a quick hoover to get rid of any pet hairs - and get someone to take the dog for a walk if you are expecting a viewing.

Make the most of your space.
If you have a small kitchen, every inch of space counts. We probably all have more gadgets than we need or use, so put them out of sight and leave worktops clutter-free.

Garage Storage
If like the majority of homeowners you use yourgarage for storing everything apart from the car, keeping it clutter free will give viewers an idea of how much space there is. They may have their own ideas for garage use - so keep tools, Christmas decorations and other items stored in boxes or hooked on the wall. Don't hide this vital space under a pile of ‘junk'.

Outdoor Areas
Spring is a great time to get your outdoor entertaining area ready for those sunny days, even if they do seem some way off! Clean the patio and outdoor furniture. Whatever the size of your garden, this is vital outdoor space. Do some basic landscaping repairs to the lawn, shrubbery, and plants - and mow the grass for an easy on the eye appearance. If you've cleaned the windows inside and out buyers can make the most of the view.

Choose your agent wisely
It goes without saying that your estate agent should be reputable. Choose an agent, like Harrison Murray who are long established in the area and belong to the National Association of Estate Agents and are members of the Property Ombudsman Scheme. Or get a personal recommendation from friends.

Currency Watch: Sterling slips to new low

Ivan Radford — Fri, 22 Feb 2013 11:31:00 GMT

Sterling slipped to a new low this week against the dollar.

Exchange rates with the USD dropped to 1.5130 on Thursday, the lowest level since July 2010, as fears of a UK economic downturn continue.

The Bank of England's recent discussions to introduce more quantitative easing to help improve UK finances have not helped concerns.

"It was one-way traffic for the pound yesterday," explains currency broker UK Forex. "MPC Minutes were released by the Bank of England at 9:30 and showed that 3 members voted for an increase in QE, compared to just 1 member last month. Governor King was one of those in favour of more stimulus, to the tune of £2.3bln in fact.

"The minutes also showed that members discussed cutting interest rates and the conclusion was that more measures were required by the central bank to stimulate the UK economy. The pound fell sharply from 1.5440 to 1.5295 against the dollar as a result. Employment numbers released at the same time, although coming in around forecast, were shrugged off.

"It didn't get any better for cable come the end of the day when US FOMC Meeting Minutes were released and showed that the Fed were more hawkish than last time around. The statement suggested that Fed members saw more of a reduction in risk and were happy that the US economy was on a "moderate growth path". A number of participants also saw holding off from further QE and even ending QE as advisable. The dollar immediately firmed across the board including vs. the pound and GBP/USD eventually fell."

GBP has improved slightly against the euro, though, thanks to new French and German data released this week.

Looking to buy property abroad? Find out more information about the currency services available at our dedicated channel:

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Yours for £1: Houses in Kensington

Ivan Radford — Fri, 22 Feb 2013 11:09:00 GMT

A Kensington home for £1? No, you're not dreaming. You are, however, thinking of a different Kensington.

Far from London's prime West End hotspot, this is Kensington, Liverpool, where the government are planning to sell off 20 homes for a quid.

The full set of plans, which will be put before the Mayor's Cabinet today, are designed to breathe "new life" into vacant properties in Granby Four Streets, Arnside Road and Webster Triangle East in the next three years.

The schemes include giving 20 properties to local people for less than the price of a bag of chips, with residents expected to refurbish them to a reasonable standard. They would be expected to live in the home for five years (without sub-letting) before being able to sell the properties on, hopefully at a significant profit. Some properties may be sold to landlords too.

The programme will also allocate properties to The Riverside Group, who will do them up and sell them for 25 per cent below the market value. The group aim to bring 250 homes back into use, notes Dale Street News.

"We think that these plans provide a really good foundation for the future of housing in Granby, Kensington and Picton," commented Ann O'Byrne, Liverpool City Council's Cabinet Member for Housing.

"We want to find innovative ways of bringing properties back into use and attracting people back into our neighbourhoods - whether that's through offering homes for £1, or working with Registered Providers to refurbish homes and selling them at discounted prices.

"Ultimately, it's about driving forward housing renewal, investing in the future of our communities and doing everything we can to provide good quality, affordable housing for the people who need it most."

The plans have already drummed up significant attention among eager investors: according to the Guardian, over 200 people rang in less than 24 hours to enquire about picking up a home for a pound.

Looking for a cheap property bargain?

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Over two-thirds of properties in West London sold to foreign buyers

Ivan Radford — Fri, 22 Feb 2013 10:35:00 GMT

Over two-thirds of properties in West London sold by one estate agent in the last three months went to foreign buyers, according to Crayson.

The agent's latest market intelligence report for the winter period shows that non-British buyers accounted for 71 per cent of transactions in Kensington, Notting Hill and Holland Park, with the prime market showing "renew vigour" at the start of 2013.

Prices surged by 13.9 per cent in Notting Hill in 2012, Crayson added, although the volume of transactions continued to be more muted than in previous years. This was particularly evident in the final quarter when there was much uncertainty over a proposed ‘Mansion Tax' and changes to the cost of holding property offshore.

"Over the course of 2012 we saw transaction levels across our market drop by 7.8% compared with 2011," explains the report, with sales activity between £2 million and £5 million particularly affected. Year on year the number of properties sold within this price bracket fell by 23%. In contrast, sales in the upper end of the market (homes selling for in excess of £5 million) increased over the same period, bolstered by strong overseas buyer demand.

With ‘Mansion Tax' scrapped and clarity given on plans for taxing offshore property holdings in the Draft Finance Bill on 11^th December the agent predicts that a number of buyers, both domestic and overseas, will now feel more comfortable in committing to purchase.

Looking back over 2012, Crayson declares 2012 another "stellar performance" for prices in prime London, with prices per square foot exceeding £1,170 within their market - an increase of 7.5% year on year. Whilst nationally values rose by just shy of 1% over the course of the year, London continued to outperform. Of the top ten local authorities nationally, eight out of ten were London boroughs, led by Westminster and Kensington & Chelsea.

"Notting Hill flats priced at between £1 million and £2 million are highly sought after," reads the report, "with the number of sales increasing by 12% year on year. Investors look set to remain prevalent and the latest figures from the CML support this with a 19% rise in buy to let lending in the first nine months of 2012 compared with the same period in 2011."

A lack of new stock reaching the market continues to be an issue across prime London, with buyers far outnumbering sellers in many of London's most sought after postcodes. Across the agent's market, available stock levels have fallen by 11% with 828 properties available in January 2013 compared with 932 in January last year.

The market overall continues to be fuelled by overseas investment in 2013, with the performance of sterling against many world currencies also giving foreign buyers the chance to purchase at a reduced price compared with domestic purchasers.

"Since the budget overseas buyers have dominated our market, with two-thirds of properties sold by Crayson since March bought by non-British buyers, compared with just one third a year earlier," commented Nicholas Crayson.

"The motivations behind purchasing a home in London amongst buyers from overseas range from pure investment, buying for offspring, or those looking for a home, whether occasional or permanent, within the Capital. Whilst it is a common misconception that overseas buyers predominantly purchase through offshore vehicles, the uncertainty over rules relating to the additional costs of properties held offshore has discouraged some potential purchasers from committing."

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Buying property in Scotland over £400 a year cheaper than renting

Ivan Radford — Fri, 22 Feb 2013 10:15:00 GMT

Buying property in Scotland is over £400 cheaper a year than renting, according to the Bank of Scotland.

The lender's latest index shows that the cost of buying a Scottish home is, on average, 6 per cent lower than renting: the monthly cost for owning a three bedroom house stood at £524 in December 2012; £34 (or 6%) lower than the typical monthly rent of £558 paid on the same property type. Over the course of a year this is equivalent to a saving of £408.

The gap between the costs of buying and renting has widened by £19 per month over the past year. At the end of 2011, the monthly costs associated with home buying were £15 (3%) lower than renting. Over the past year, buying costs have remained the same, while the cost of renting has increased by 3%.

Buying a house is more affordable than renting in all 12 UK regions. Buying is most affordable compared to renting in London with the typical homebuyer paying 15% (£193) a month less than the average renter (£1,101 against £1,294). In Yorkshire and the Humber there is virtually no difference, with average monthly buying costs just £1 lower than average monthly rental costs (£482 against £483).

Nitesh Patel, housing economist at Bank of Scotland, commented: "In the past few years, the sharp decline in home buying costs, combined with an increase in rents, has greatly improved the financial attractiveness of buying a home. This shift has contributed to the increase in the number of house purchases in Scotland in 2012.

"Despite this pick-up, home buying levels are still only half the level at the height of the boom. Concerns over job security and raising a deposit are the main obstacles to people buying their own home. However, it is worth noting that once homebuyers are on the first rung of the ladder, their monthly costs are notably lower."

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Infographic - Rents up in North West as national average falls

Ivan Radford — Fri, 22 Feb 2013 10:12:00 GMT

UK rental asking prices fell in January, despite most regions recording an increase. The dip was largely caused by London, which saw rates fall by 1.07 per cent, according to the latest Move with Us report. The average advertised rent in the UK currently stands at £972, which is still £35 more than January 2012.

Seven of the eleven regions examined experienced minor rental price increases throughout January, with only the North West registering more than 1%. The trend line for regions such as the East and West Midlands, Wales and the South East, suggests a period of stability and small fluctuations around a constant price level. In addition, the trend for the North and South West suggests continued rental price growth keeping pace with retail price inflation.

Though East Anglia and Scotland both saw rents recover from a seasonal fall in advertised rents in December, it is yet to be seen how prices will behave in the long term. Prices fell slightly in Yorkshire & Humber, marking an end to the 6% increase registered in late 2012. A similar situation occurred in Q3 and Q4 last year, with rent increases temporarily tailing off before recovering.

February should see similar rental market conditions to January. Market growth of above 0.5% should occur in most regions, with rental prices increasing at around the rate of inflation. London rents are likely to fall at a slower rate than January as rental prices begin to recover, whilst advertised rents in Yorkshire & Humber should stabilise and return to growth. In addition, Scotland may see the first two months of consecutive growth since Q1 of 2012.

Robin King, director of Move with Us, commented: "Rental asking prices have remained stable throughout January, and indicators suggest that they will remain fairly stable into the next quarter. Minimal evidence of demand pressures, combined with stable supply, suggest that the market has reached an equilibrium point.

"The supply of advertised properties remains at around 180,000, as landlords appear more interested in maximising occupancy and avoiding arrears than increasing rents. On the demand side, there has been little movement in average wages, while increases in home loan availability are allowing more people to enter residential markets. A result of this is house price inflation, which combined with on-going rent stability will start to erode rental yields. However, landlords are compensated by capital yield improvements."

View the infographic:

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New house building figures reveal “scale of the problem facing UK”

Ivan Radford — Fri, 22 Feb 2013 09:55:00 GMT

The latest official housing building statistics "demonstrate the scale of the problem facing the country", according to the Royal Institution of Chartered Surveyors.

The data, published this week, shows that seasonally adjusted house building starts in England numbered 26,830 in the final quarter of 2012, 1% higher than the previous quarter. Seasonally adjusted completions totalled 27,890, 2% higher than the previous quarter.

Private enterprise housing starts (seasonally adjusted) were 2% higher in the December quarter 2012 than the previous quarter, while starts by housing associations were 10% lower.

Seasonally adjusted starts are now 58% above the trough in the March quarter 2009 but 45% below the March quarter 2007 peak; completions are 42% below their March quarter 2007 peak. Annual housing starts totalled 98,280 in 2012, down by 11% compared with 2011; annual housing completions in England totalled 115,620 in 2012, 1% higher than in 2011.

Simon Rubinsohn, RICS Chief Economist, commented: "These figures demonstrate the scale of the problem facing the country in delivering sufficient homes to accommodate a rising population. In the final three months of last year, less than 27,000 new houses were started in England alone, leaving the final figure for the whole of 2012 below 100,000. Weakness was visible in all sectors although the biggest decline was from housing associations which saw a drop in starts of more than 20 per cent.

"Notwithstanding this, RICS expect the volume of activity to increase over the coming quarters helped by some of the measures introduced by government. A slightly more positive tone is also visible in the results of the latest RICS Construction Survey. However, even allowing for this, starts are only likely to reach 115,000 this year which is way short of need. This imbalance between demand and supply is likely to continue to underpin the relative resilience of both house prices and rents."

Alternative Investments Explained: Stamps

admin — Thu, 21 Feb 2013 15:20:00 GMT

Alternative Investments Explained: from eco investments to precious metals, AlternativeMarketplace.co.uk explains the alternative products vying for your cash and assesses which assets are worth taking the risk.

This week, Alternative Marketplace puts its magnifying glass over the minute world of stamp investments.

What does "philatelic investment" mean? To put it simply, stamps. The most portable alternative investment product in the world, the size of stamps may make them appear insignificant but to the trained eye, they can yield impressive returns - but only if stored correctly.

The size of stamps makes them a delicate product to keep and their condition is directly proportional to their worth. Unlike precious metals, rare coins or other tangible commodities, a slight tear in paper can significantly reduce a stamp's value. Other vital factors include the demand from other collectors, the number available on the market, its thematic appeal as part of a set or year, and current perceptions of value. The latter is affected by current events, such as deaths or anniversaries.

Stamps have always been associated with older investors and hobbyists, with stamp collecting popular as pastime many decades ago. Over the years, though, certain stamps become rarer than others. Ironically, the knack to spot a rare stamp and know which to keep is a skill that is only developed with years of experience from stamp collecting. Once that knowledge has been acquired, it is possible to understand a sensible buying and selling price for a particular stamp, thus calculating the return on your investment.

Becoming involved with stamp clubs, attending auctions and shows and working with an experience dealer are the best ways to make sure your investment is sensible. Firms such as Bloomberg also publish lists of top rare British stamps on their website.

Stamps can be purchased from collectors directly via the internet as well as through auctions, dealers and stamp investment firms. Like the products themselves, the stamp trading market appears small to untrained eyes, but the overall market has an approximate total of 48 million collectors and a combined worth of around £5 billion.

Size isn't all that matters.

For more information on how to invest in stamps, visit http://www.alternativemarketplace.co.uk/

£120 cheaper to buy a UK home than rent

Ivan Radford — Thu, 21 Feb 2013 11:08:00 GMT

It is now £120 cheaper to buy a home in the UK than rent, according to Halifax.

The lender's latest research shows that the cost of buying property is 16 per cent lower than the typical monthly rent of £741 paid on the same property type - an equivalent saving of £1,440 a year.

The gap between the costs of buying and renting has widened by £21 per month over the past year. At the end of 2011, the monthly costs associated with home buying was £99 (14%) lower than renting. Over the past year, buying costs have risen by 1%, while the cost of renting has increased by 4%.

Martin Ellis, housing economist at Halifax, commented:

"The sharp decline in home buying costs over the past few years, combined with a significant increase in rents, has greatly improved the financial attractiveness of buying a home. This shift has contributed to the increase in the numbers of house purchases, which reached a five year high in 2012.

Despite this pick-up, home buying levels remains well below the levels at the height of the market. Today, concerns over job security and raising a deposit are the main obstacles to people buying their own home. However, it is worth noting that once homebuyers are on the first rung of the ladder, their monthly costs are notably lower."

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Five property trends for 2013

Ivan Radford — Thu, 21 Feb 2013 10:34:00 GMT

Buyers are increasing looking to new homes rather than older projects that need renovation, according to Stacks Property Search, who look ahead to the coming 12 months to determine what patterns will unfold in the property industry.

Here are five emerging trends they identify for 2013:

Perfect property

Bill Spreckley of Stacks Property Search says, "Buyers have lost their appetites for projects. Increasingly, our clients want a property to be in perfect condition so they can move straight in. It's hard enough to raise finance to buy the property, but it becomes even harder if you have to factor in money for renovations too - a notoriously inexact science. The current psychology is that finances need to be certain, and that means knowing how much you need to spend and what the running and maintenance costs are.

"That does of course mean there are more opportunities for those who are actively looking for a project. The market has reversed. Ten years ago, wrecks would go for barmy prices at auction as developers, builders and renovate-to-live buyers competed with each other. Today the auction rooms are a much quieter place."

New homes please

Catherine McAllister of Stacks Property Search says, "Buyers who would previously have only considered period property are being seduced by newer homes. The unpredictable nature of repairs/maintenance that Old properties can require, together with the sometimes eye-watering heating bills, is making cash-conscious buyers see new, insulated, double-glazed, efficient properties as a very attractive proposition. Certainly buyers are more interested in EPC data than ever before, and question vendors closely about running costs. Eco features are a very strong selling point in today's market."

The rise of the small estate agent

Amanda Ake of Stacks Property Search says, "Big agents are having to work harder to compete with their local rivals who are more agile and able to offer lower fees. Their personal local service appeals to vendors, and there is a decreasing benefit to a national agent who focuses on its ability to reach a wide audience - they too have to work hard to provide a personal and competitive service. This is because the dominance of property portals allows small agents to reach the same potential buyers as the 'corporates'. Gone are the days when the larger agents were the only ones approached by top end buyers, and buyers from out-of-area. Often using both a local and a national agent can be the best approach when selling a house."

Divvying up a property

Amanda Ake of Stacks Property Search says, "Large properties with many acres of land, and separate annexes or cottages are being re-lotted and sold as separate titles. In some areas there is a real shortage of buyers in the £2m+ bracket due in part to the new stamp duty band, and property at this level can be difficult to sell. Selling some of the land separately, or packaging up a separate cottage with its own parcel of land, can open up completely new markets. Buyers can keep their eyes open for opportunities to approach a vendor's agent about an extra bit of garden or land, a barn, or a separate property. Anything goes, and there's nothing to be lost by asking."

Space that will generate cash

Briony Mathams of Stacks Property Search says, "Country house buyers are increasingly searching for property that has potential to generate income; an annexe that can be used for holiday lets; B&B accommodation; land/stabling for liveries. Or at a less commercial level, space for chickens, pigs, or vegetables for a taste of the good life.

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