Tuesday 26 October 2010

Mervyn King says UK house prices have recovered by two-thirds

Bloomberg reports that Bank of England Governor Mervyn King says UK house prices have erased about two thirds of their losses caused by the financial crisis.

While there are no “evident” signs of a recovery in the US housing market, Britain’s property prices have erased about 10 percentage points of the 15 per cent drop they endured after mortgage lending dried up in 2008, King said during questions at an event organized by the Economist magazine in New York today. Rates of arrears in the UK remain “much lower” than they were in the 1990s, he said.

The UK planning system guaranteed a lack of housebuilding, King said. The common factor between the property markets of Britain and the US is that they were driven higher by low real interest rates, he added.

Our thoughts: "not too sure where these numbers have come from - but the market has definitely been busier this year than last with prices for good homes in good locations holding up well" says Adam Offer Group MD for Besley Hill

Source propertydrum.com 26.10.10

Talk of a double-dip recession had no basis in fact says Treasury – GDP figures show recovery is steady.

George Osborne has said that better-than-expected UK economic performance figures show the recovery is "steady".

The Office for National Statistics (ONS) suggests the economy grew at 0.8% between July and September - twice the rate expected by many analysts.

The chancellor said this would improve confidence, with Treasury sources adding it showed the risk of a "double-dip" recession was being overplayed. But Labour said the speed of spending cuts could damage the recovery.

The latest gross domestic product (GDP) figure follows 1.2% growth in the second quarter of the year, and is double the 0.4% expected by analysts. But the data is only a first estimate, and may be revised.

The Cabinet, which met for 45 minutes earlier on Tuesday, was dominated by discussion of the GDP figures and the government's growth strategy, Downing Street said.

The economic situation was still "relatively choppy," the prime minister's official spokesman said, but the growth figure "is something we can take confidence from".

Mr Osborne, as chairman of the cabinet's economic affairs committee, would now be leading a "ruthless focus on growth" by going through each government department in turn to push for greater efficiencies and deregulation and "clear any bottlenecks," the spokesman added.

'Broadly based'

Commenting on Tuesday's economic data, Mr Osborne said: "Today's figures show the economy continuing to grow, at double the rate the market expected and the fastest rate for the third quarter since 1999.

"Just like the second quarter, the growth is broadly based and the lion's share is coming from the private sector.

"The ONS believe that the underlying growth in the third quarter was 'broadly similar' to the strong second quarter. This gives me confidence that although global economic conditions remain choppy, a steady recovery is under way."

But, for Labour, shadow chancellor Alan Johnson said the figures showed that growth has slowed in third quarter of this year.

"They also show that momentum remains from Labour's support for the economy - especially the construction sector.

"The risk going forward is that the government has a plan to cut one million jobs, but no plan to support the private sector in replacing them.

"Yes, the deficit needs to be reduced - but it needs to be at a pace that the private sector can manage."

Treasury sources told the BBC the GDP figures were welcome news, adding that talk of a double-dip recession had no basis in fact.

Source: bbc.co.uk 12.01pm 26.10.10

Wednesday 20 October 2010

CONSISTENCY FOR 19 MONTHS

Rupert Swetman, a financial advisor with Mortgage Advice Bureau at Besley Hill Estate Agents’ Bedminster, Bishopston, Whitchurch and Bishopsworth offices, comments on the Bank of England’s decision to retain the Bank Base Rate at half of one per cent for the nineteenth consecutive month.
With the recent announcement concerning the planned changes to Child Benefit, other possible tax rises and with further significant reductions to public spending announced in the Spending Review, the public have got an insight into the impact that some of the changes are going to have on personal incomes.
This does not bode well for customers as almost everyone is likely to see some reduction in income. However, we continue to see a high degree of competition amongst lenders to attract those borrowers who are looking to either move home or remortgage.
The price of the average two-year fixed rate mortgage in October, as reported by Moneyfacts, has fallen again in the last month to 4.48%, down from 5.13% twelve months ago. Furthermore, the price of the average five-year fixed rate has also continued to reduce to 5.41% in October from 6.23% twelve months ago.
Fixed rates are not the only products in the market that have fallen; the price of the average two-year tracker deal has fallen back to 3.54% from 3.75% twelve months ago.
This demonstrates that lenders are attempting to encourage borrowers to enter into what are low rates in comparison with historic levels.
In addition to reducing mortgage interest rates, we have also witnessed a further increase in the number of mortgage products typically available to brokers with product numbers rising to 4,913 in the first week of October. This is a marked turnaround from twelve months ago when product numbers were less than half this level and a post “credit crunch” high.
Until the public are in a position to fully assess the impact of the Spending Review from a personal perspective, we envisage that fixed rates will be the main choice of product for borrowers because of the certainty they provide in helping stabilise household budgets in times of wider economic uncertainty.
*For further information on how the latest base rate decision affects you, call Rupert Swetman on 07773786004, email him on ruperts@mab.org.uk or contact your local Besley Hill Estate Agents office.

PRETTY DETACHED PERIOD COTTAGE

A pretty detached period cottage is on the market for £309,950 with Besley Hill Town & Country Homes at Chipping Sodbury.
Situated on Tortworth Road at Cromhall, a desirable South Gloucestershire village, The Coach House offers well-presented accommodation full of character and charm.
The property is arranged over three floors and includes entrance porch, lounge/diner, kitchen/breakfast room and a modern white family bathroom.
There are also two generous bedrooms, both with lovely views over open countryside, and a third bedroom/study.
Further benefits are a single garage with additional outbuilding attached and a good size enclosed rear garden.
The lounge/diner, measuring 28ft x 13ft 10ins, has two Upvc wood grain effect leaded double glazed windows to the front, window seats, feature stone fireplace with wood burner, exposed stone walls and beamed ceilings.
The 20ft x 13ft 8ins kitchen/breakfast room comes with a range of wall and base units with rolled edge work surfaces, Aga range cooker, inset 1.5 bowl stainless steel sink unit, beamed ceiling, tiled floor and inset spotlights.
Outside, the elevated terraced garden to the rear of the property is mainly laid to lawn, enclosed and with sunny aspect. There are mature shrub, palm and fruit trees and two patio areas, outside tap and shed housing the central heating boiler.
There is a single garage which has power and light supply and an up and over door. An outbuilding with power and light supply is attached to rear of the garage providing useful storage/workspace.
“The property is offered for sale with no upward chain and sure to create a lot of interest,” say the agents, who recommend early viewing of this charming cottage.
Contact them on 01454 313575, email sodbury@besleyhill.co.uk

VICTORIAN HOME AT HORFIELD TO RENT

Looking for a house to rent with two double bedrooms in the Horfield area of Bristol?
Then 33 Boston Road,a Victorian middle-terrace property, should fit the bill.
The bay-fronted house, which is available part-furnished for £675pcm from 8 November, also has two reception rooms.
Further benefits include gas central heating, white suite bathroom and garden.
The property is located minutes away from the A38 Gloucester Road, providing good access to the busy Bishopston shopping area, Southmead Hospital, major employers at Abbey Wood and Filton, and the motorway network.
“This home is ideal for families, professional sharers and students,” says Darren Head, of Besley Hill Estate Agents at Bishopston.
For further information contact Darren on 0117 924 4008, email bishopston@besleyhill.co.uk

Friday 15 October 2010

Unemployment falls 20,000

Unemployment fell by 20,000 to 2.45m in the three months up to August but those claiming jobless benefits increased, the Office of National Statistics reveals.

The number claiming out of work benefits increased by 5,300 to 1.47m between August and September.

The unemployment rate for the three months to August was 7.7%, down 0.1% on the quarter.

Source: Mortgage Strategy 15.10.10

Mortgage applications jump 31% on September 2009

New mortgage applications for house purchase are at their highest level since February 2008, according to the latest figures from the Mortgage Advice Bureau/Coreco National Mortgage Index.

Following the expected summer lull in mortgage activity in August, purchase mortgage applications jumped 14% in September, with remortgage applications jumping by 14.3% in September compared to the previous month.

Although housing market activity traditionally picks up in September, purchase mortgage applications are still up almost a third, 31.2%, on September 2009.

The average LTV on purchase mortgage applications rose slightly from 70.2% in August to 70.4% in September, while the average loan size for purchase mortgage applications dropped 1.3% from £129,270 in August to £127,591 in September.

Regionally, the South West and East Anglia saw a 56.3% and 50% rise in purchase mortgage applications respectively in September compared to August. Meanwhile, Yorkshire & Humber witnessed an 18.9% drop-off in purchase mortgage applications in September compared to the previous month.

Looking at the types of mortgage products arranged in September, the majority of purchase and remortgage applicants, 62%, chose fixed rates over variable, compared to 58.5% of applicants choosing fixed rates in August.

The average age of a UK mortgage applicant in August was 37 years 2 months, while the oldest applicants were in the South West, 39 years seven months and the youngest in East Anglia a 33 years and two months.

Brian Murphy, head of lending, independent mortgage broker Mortgage Advice Bureau, says: “The uplift witnessed in September following the drop-off in August reflects a more normal level of seasonal activity. We have seen an increase in mortgage activity in seven of the ten regions in the house purchase arena and in eight out of the ten regions in the re-mortgage sector in September versus August.

“However, with the new coalition government announcing specific plans to make changes to the provision of child benefit ahead of the widely anticipated Spending Review, albeit for higher rate taxpayers, we are seeing real evidence that disposable incomes are going to come under considerable pressure and this is likely to put a further brake on borrowers’ ability and appetite to move home.

“Although interest rate rises look unlikely in the short term, we have seen borrowers seeking the sanctuary that fixed rates afford them in increasing numbers. The number of house purchase borrowers who opted for fixed rates rose in all ten regions during September and reached its highest proportion so far this year, at 65.1%.”

He says overall, the proportion of remortgage borrowers opting for fixed rates also increased from 53.6% during August to 55.8% in September, although variable rates remained in the ascendency in three of the ten regions.

He says: “These increases perhaps indicate that people are now starting to become more concerned about the impact that the spending and tax changes are likely to have on them and, as a consequence, are looking for the safer haven that a fixed rate provides to help manage household budgets in the turbulent times that undoubtedly lie ahead.

“Mortgage product availability continues to improve with product numbers available to intermediaries reaching post-Credit Crunch highs of almost 5,000.”

Source: Mortgage Strategy & MAB 15.10.10

Tuesday 5 October 2010

Council tax bands held 'til 2015

It’s not often a deal breaker but council tax bands do figure in the decision to purchase (or not) a property and they also figure in the decision of where to pitch a sales price, particularly under the last government when the threat of massive rises was always on the cards.

The new government has announced that council tax bands in England are not going to be reviewed until 2015 at the earliest, which means that many households will avoid being hit by additional council tax payments stemming from the increased value of property over the past seventeen years.

The eight council tax bands were based on property values back in 1991, and they were last reviewed in 1993.

The Government has decided that there will be no further review of the council tax banding system until 2015 at the earliest. The Government has said that it would be unnecessary and expensive to carry out a council tax banking review at the moment, adding that because of the property price increases around seven million households could find themselves being pushed into higher tax bands if a revaluation was carried out now.

Communities and Local Government Secretary Eric Pickles said that the Government had decided that revaluation of the council tax bands at the present time would be very stupid, and that it was wrong to impose higher taxes on already struggling families when it was not necessary.

Any decision about revaluation of the council tax banks will now be put on hold until after the next general election in 2015. Through the lifetime of the parliament this should save the average household around £1600.

An independent review of the council tax system was made in 2007 under the former Labour government, and it was advised that properties should be revalued. However, no changes were made in England at this time. The council tax bands in Wales were revalued back in 2005, as the Welsh Assembly said that they were outdated.

Source: propertydrum.com 05.10.10

Friday 1 October 2010

THE LETTING SHOP JOINS BESLEY HILL

The Letting Shop, one of the leading letting agents in the South West, has become a Franchise of Besley Hill Estate Agents and changed its name to Besley Hill Residential Lettings.

The move, which increases Besley Hill’s turnover as the region’s biggest franchised estate agency group to £15 million, follows a strengthening of the ties between the two firms.

Adam Offer, Managing Director of Besley Hill Estate Agents, said: “The two businesses have always worked in association with one another but there is now even closer co-operation.

“The Franchise agreement reflects this development and consolidates a relationship that plays an important part in Besley Hill’s ability to provide a fully comprehensive property service.”

Besley Hill Residential Lettings serves landlords and tenants, offering more than 100 properties to rent at any one time through the Besley Hill 16-strong branch network throughout Bristol and Gloucestershire.

There are offices at Bedminster, Berkeley, Bishopston, Bishopsworth, Chipping Sodlbury, Downend, Dursley, Easton, Fishponds, Kingswood, Knowle, Longwell Green, Stroud, Thornbury, Whitchurch Village and Wotton-under-Edge.

Two types of lettings service are available to landlords – full management and introduction.

Mark Offer, Managing Director of Kingswood-based Besley Hill Residential Lettings, said: “The Letting Shop became a UK Top 50 lettings agency named in several exceptional performance sections. Closer co-operation with Besley Hill as a Franchise will widen the range of services we offer to our landlords.

“As brothers, Adam and I are able to steer the business with a unique family approach which you don’t tend to get in companies of this size with typical directors and board members. Sunday lunch at mum and dad’s often turns into an interesting informal board meeting!”

For full details of the lettings services available, contact Mark Offer at Besley Hill Residential Lettings, 385 Two Mile Hill Road, Kingswood, Bristol BS15 1AD, tel 0117 961 0011