NEW HOMES PRICES UP BY 3.2% IN PAST YEAR

The new homes market saw annual price growth of 3.2% in 2011, which is the first calendar year to see positive growth since 2006. The average price of a new home is now £7,029 higher than at the end of 2010.
The average asking price for a new home in December was £227,098, increasing 1.2% since November. The last quarter of 2011 saw consecutive monthly increases with prices up 2.6% over the three months.
The new homes market continues to show increasing price stability, although the number of new homes coming onto the market fell consecutively in the three months to December as housebuilders delayed new development and phase launches until the New Year. Annual growth of 10.2%, however, was still recorded.
Trading updates from some of the UK’s biggest housebuilders show that build completions in 2011 were up year-on-year and many have grown their landbanks but it remains to be seen what impact the new Localism Bill and the NPPF will have on build capacity.

£20MILLION FOR SAFETY NET AGAINST REPOSSESSION

Housing Minister Grant Shapps (pictured) has announced a new £20million safety net to help ensure that mortgage repossession remains the last resort for struggling homeowners.
This Preventing Repossessions Fund gives councils the opportunity to offer small interest free loans to struggling homeowners and ensure that court desks can offer on the day advice for those facing the prospect of repossession.
He urged anyone facing financial difficulty to use the range of free and independent advice available to get help and avoid losing their home.
The new funding includes £1million to ensure that free, on-the-day, legal advice is on hand in every county court for homeowners at risk of repossession. This much needed legal assistance is available at court to any individual facing homelessness and the cash will 'plug the gaps' in the Housing Possession Court Duty Scheme ensuring that all courts are able to offer a viable service, where it is not already provided by the Legal Services Commission or independently.
In many cases applications for possession orders are rejected or suspended when a householder has access on the day legal advice - last year over 30,000 households benefited from the court duty desks.
Mr Shapps also gave a £19million cash injection to councils, so they can ensure that local people have access to real financial support to help allay the threat of losing their homes.
The Preventing Repossession Fund, which is being allocated to every local housing authority in England, enables them to offer struggling homeowners small interest-free loans of less than £5,000 or grants to help ease debt pressures and give them the breathing space to get back top of their finances.
Having the right advice and support on managing debts is crucial in helping homeowners to regain control of their debt. Alongside financial support those at risk of repossession should be given the knowledge and help to manage their finances in the future.
Local authorities are encouraged to work innovatively and flexibly with other local authorities, lenders and homeowners to ensure that the Preventing Repossession Fund is sustainable and tackles repossession in the best way for their area.
Grant Shapps said: "Repossession should only ever be the last resort. No one in financial difficulty should be embarrassed to seek help if they need it. This cash ensures that no matter where you are in the country the advice and the financial support is on hand to help people get on top of their finances and keep them in their hard earned homes.
"Getting advice early is important but even for people facing a court hearing repossession is not a foregone conclusion. By extending the reach of the Court Desk scheme we are ensuring that no one is left stranded without the support of the free on the day legal advice that has already saved thousands of families from repossession."
The announcement comes as the latest figures from the Council of Mortgage Lenders show the number of homes taken into possession in 2011 to be 36,200, lower than the 40,000 originally forecast and the lowest since 2007.
Tackling the deficit to help ensure that homeowners don't face rapid increases in interest rates is a top priority for Government and interest payments for mortgages are currently the lowest as a proportion of total income since records began.
The Government is also investing more than £200 million into the Mortgage Rescue Scheme. The scheme, available through local authorities, is designed to offer a last resort to the most vulnerable families to avoid repossession.
For homeowners struggling to keep up with mortgage payments and worried about the threat of losing their homes the Directgov website -  www.direct.gov.uk/mortgages (external link) - has lots of free advice and information. Helpful advice is also on hand from organisations including Citizens Advice and the National Debtline.

GOOD NEWS FOR BORROWERS WITH SMALLER DEPOSITS

Several lenders have refreshed and re-priced their mortgage products for the new year with a new lender in the shape of Accord Mortgages starting to offer mortgages at 90% loan to value and Newcastle Building Society re-entering the 95% loan to value market.

Longwell Green-based Nigel Bull, one of a team of Mortgage Advice Bureau (MAB) representatives operating from Besley Hill’s offices throughout Bristol and Gloucestershire, says this is good news for borrowers with smaller deposits or lower levels of equity, allowing more potential buyers to access the market.

Nigel reports that December saw the anticipated seasonal slowdown in the housing and mortgage market, although activity amongst purchasers and remortgage borrowers was ahead of the same period in 2010.

“As you would expect in the current economic climate,” says Nigel, “many purchasers continue to opt for the certainty that fixed rate mortgages offer, with three out of four buyers electing to fix.

“January saw changes in the average rates available, with the average two, three and five year fixed rates and two year tracker rate all rising very slightly.

“The average fixed mortgage rates for January are 4.27% (two year), 4.53% (three year) and 4.61% (five year), all of which are below the same period twelve months ago, although average two year trackers at 3.50% are marginally above this time last year.”

According to Nigel Bull, those homeowners remortgaging are also still firmly in favour of fixed rates but the proportion is slightly less, with just under two thirds choosing fixed rate deals.

SMART'S THE WORD FOR BESLEY HILL'S NEW THORNBURY OFFICE

Besley Hill Town & Country Homes have opened a “smart” new office at 57 High Street, Thornbury.
The premises, which have been fitted to a high specification, are claimed to be “probably the smartest property showroom in Thornbury”.
The office, part of a group of 15 Besley Hill branches throughout the Bristol and Gloucestershire area, has a sales team with over 50 years’ experience of the local property market.
To mark the opening, they are offering a range of incentives for all new instructions before 31 March 2012.
In addition to a free no obligation valuation, these include free local advertising in the Thornbury Gazette and online listings on Rightmove, PrimeLocation, FindaProperty and Besley Hill’s own website, ranked one of the top five property websites in the UK.
Further support is provided in the form of high quality colour brochures with internal, garden and view photographs as well as prominent displays in the new showroom.
“Our service contracts are tailored to suit individual customers and the high level of satisfaction is borne out by the results of a survey of our 2011 sales,” said Thornbury branch manager, Andrew How.
The survey found that all sellers considered the branch to be “very” or “extremely” personable and professional with 95% likely to recommend Besley Hill Thornbury to friends and family and the same percentage expressing similar satisfaction with the service provided, the high quality of sales details and the level of communication provided throughout the sale.
“Our customers do say the nicest things about us,” added Andrew How. “For instance, one told us that we made a painful process bearable with our professionalism and kindness while another said that their move went smoothly and without any fuss because they were in capable hands.”
At Thornbury, Besley Hill provide a full range of property services, including house sales, lettings, mortgages, financial services, auction, survey and conveyancing.
For further details, contact them at Besley Hill Town & Country Homes, 57 High Street, Thornbury, South Glos BS35 2AP, tel 01454 411522, email thornbury@besleyhill.co.uk, website www.besleyhill.co.uk
Besley Hill also has offices at Bedminster, Bishopston, Bishopsworth, Downend, Dursley, Easton, Fishponds, Kingswood, Knowle, Longwell Green, Stroud, Thornbury, Whitchurch Village and Wotton-under-Edge.

MORTGAGE COSTS FALL TO ALL-TIME LOW

Research from Barclays Capital shows that mortgage payments in England and Wales averaged £494 a month or 15.4 per cent of home owners' take-home pay last year.
This makes deals at their most affordable for a decade, falling from a peak in 2008 when monthly mortgage bills accounted for more than a fifth of take-home wages.
The data also suggested that most homeowners could manage with the Bank of England raising the base rate from its historic 0.5 per cent low.
It found that 83 per cent of homeowners would have the necessary flexibility should interest rates, or their circumstances, change.
Just under three-quarters of those studied said they had a plan in place for when interest rates started to rise, with around a third of these planning to cut 'lifestyle' spending, including clothes, holidays and eating out, to offset increases..
The latest Barclays Capital credit conditions survey found lenders were planning to launch more innovative deals, particularly for those who have smaller deposits.
“This could help first-time buyers who have found themselves trapped in the rental sector,” said Adam Offer, managing director of leading south west estate agents, Besley Hill.

HAPPY NEW YEAR FOR HOMEOWNERS

Nationwide ensured it was a Happy New Year for homeowners with research which showed that UK house prices actually increased during the past year.
Data issued by the mortgage lender revealed that the average UK house price rose by 1% over the course of 2011.
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “Against a backdrop of anaemic economic growth and a deteriorating labour market, UK house prices were surprisingly resilient in 2011.”
According to Nationwide, nine out of ten UK regions recorded house price rises in 2011, including the south west, where there was a 0.6% increase.
Adam Offer, managing director of leading south west estate agents Besley Hill, welcomed the trend.
“These figures show that the property market outperformed the stock market during the past twelve months and suggest that bricks and mortar will continue to be a sound investment in 2012,“ said Mr Offer.

PERIOD COTTAGE HAS A LOT TO OFFER

This two-bedroom stone-fronted period cottage, 17 Lewington Road, Fishponds, is to be sold by auction by Besley Hill on 8 February with a guide price of £80,000 to £110,000.
Situated in a popular location just off Staplehill Road, the property retains original character but requires general refurbishment and modernisation.
“This home is an ideal choice for DIY enthusiasts, speculators, buy-to-let investors and professionals,” said Mark Symonds, senior branch manager of Besley Hill Estate Agents’ Fishponds office.
Comprising dining room, living room, kitchen, two bedrooms and bathroom, the house has the benefit of a Valiant combination gas-fired boiler and some Upvc double-glazed windows.
There is also a 25ft enclosed rear garden with wide beds with established shrubs and plants and cobblestone pathway.
The property is one of the lots on offer at Besley Hill’s auction sale on 8 February at The Pavilion Lounge of BAWA, 589 Southmead Road, Filton, Bristol, BS34 7RG, starting at 7.00pm.
For further details of 17 Lewington Road, including an open house viewing from 10.00am to 11.00am on Saturday, 7 January, contact Mark Symonds, Besley Hill Estate Agents, 764 Fishponds Road, Fishponds, Bristol, BS16 3UA, tel 0117 9653162, email fishponds@besleyhill.co.uk, or the auctioneer’s office, tel 0117 9701551, website www.besleyhillsurveyit.co.uk