HOUSE PRICES RISING AT FASTEST RATE FOR YEARS - RICS July 2013 UK Residential Market Survey

The UK housing market appears to have finally turned a corner as buyers returned to the market in their biggest numbers for years, says the latest RICS Residential Market Survey (13 August 2013). During July, the amount of potential buyers looking to enter the market grew at the fastest rate since July 2009, as a net balance of 53% more chartered surveyors reported increases in demand. Since the start of the year, buyers have gradually been returning to test the market – thanks in no small part to government finance initiatives – yet the amount of would-be buyers seen in July saw a sizeable peak. Significantly, this growth was seen in each and every part of the UK as the recovery, initially focused in the South East, spread to regions across the country. The West Midlands and the North East – areas which have suffered more than most since the market crash – experienced the biggest increases in buyer activity in July. Consequentially, prices rose in the country for the fourth consecutive month and grew at their fastest rate since the market peak of November 2006. Notably, this was not only confined to more affluent parts of the country such as London, but every region saw growth as we enter the end of the summer period. In tandem with rising buyer confidence, more potential sellers looked to test the market and place their homes up for sale. Last month, 15% more respondents reported rises rather than falls in new instructions. This reading has now been in positive territory for the last six months. However, in each of these months it has been outstripped by the change in new buyer enquiries. Looking ahead, it seems that prices across the country are going to continue to rise further, with a net balance of 35% more surveyors predicting increases. Meanwhile, transaction levels are also expected to grow, as 53% more respondents forecast sales will rise rather than fall over the coming three months. Peter Bolton King, RICS Global Residential Director, said: “These results are great news for the property market as it looks like at long last a recovery could be around the corner. Growth in buyer numbers and prices have been happening in some parts of the country since the beginning of the year but this is the first time that everywhere has experienced some improvement. It is clearly good news that those parts of the property market that were struggling are at last showing some signs of life.” Endorsing this view, Adam Offer, managing director of leading south west estate agents, Besley Hill, said: “Feedback from our offices throughout Bristol and Gloucestershire shows that house prices are rising in our area and I am confident that this trend will continue in the coming months.”

4,000 NEW HOMES ALREADY SECURED WITH HELP TO BUY

Nigel Bull, one of a team of Mortgage Advice Bureau (MAB) financial advisers serving Besley Hill Estate Agents offices throughout Bristol and Gloucestershire, comments on the success of the Help to Buy Scheme and the outcome of the recent MPC meeting: “The June meeting of the Bank of England’s Monetary Policy Committee (MPC) marks the last time that the current Governor of the Bank of England, Mervyn King, will preside over the interest rate setting and monetary stimulus monthly meeting. The Governor is stepping down from the role at a time when the economic news finally looks to be moving more consistently in a positive direction. Several economic surveys in the last week or so have reported business expansion in the service sector, which accounts for some three quarters of the UK’s total trade, and importantly, due to the need for us to diversify our economy, expansion is also occurring in both the construction and manufacturing sectors. We understand that at the previous meeting of the MPC in May, King voted in favour of an injection of 25bn to stimulate the economy, however, the group vote was to take no action. This notion was upheld once again at this month’s meeting as the committee voted to maintain the base rate of interest at 0.5% and to refrain from further asset purchase. With the global economy now appearing to finally be heading in the right direction, we could see this attitude becoming a world-wide trend, with many central banks looking to refrain from further market intervention. The Government’s interventions to stimulate the housing and mortgage markets announced in the recent budget included the Help to Buy scheme, which has been operating for a little over two months. During that time 4,000 new homes have been reserved. This initial take-up is very positive and there are further measures due to come into operation in 2014 with the introduction of a mortgage guarantee scheme to enable lenders to offer mortgages at higher Loan to values on re-sale property. This is likely to give a further boost to housing transaction numbers and greater access to mortgage finance for those borrowers who have not been able to save substantial deposits or those whose equity has been eroded. Mortgage rates have continued to fall at the beginning of June from May with the average 2, 3 and 5 year fixed rates now at 3.74%, 4.06% and 3.88% respectively. Borrowers across the country remain firmly in favour of fixed rates with more than nine out of every ten borrowers during May and cumulatively opting for a fixed mortgage product. May has also seen a positive increase in the number of mortgage products offered to the market with more than 7,000 mortgage products currently available to the typical intermediary, almost a 6% increase over April and the highest number in more than 12 months.” To find out how you could take advantage of the Help to Buy scheme, call Nigel Bull on 0117 9325686, email him at nigelb@mab.org.uk or contact the MAB local mortgage specialist at your nearest Besley Hill office. Note: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

CHEAPER BORROWING SET TO CONTINUE?

Nigel Bull, one of a team of Mortgage Advice Bureau (MAB) financial advisers serving Besley Hill Estate Agents offices throughout Bristol and Gloucestershire, comments on the Bank of England’s Monetary Policy Committee’s decision to retain the base rate of interest at 0.5% for the 50th month. “Last month we were waiting the first quarter Gross Domestic Product (GDP) results for the UK economy and the outcome was positive with, as expected, the UK posting a 0.3% rise in GDP following the fourth quarter 2012 decline. This meant that the UK had officially avoided what was potentially a “triple dip recession”. Following the publication of the positive GDP data, we are not surprised that at this month’s meeting of the Bank of England’s Monetary Policy Committee (MPC), the vote was once again to refrain from further monetary stimulus keeping it unchanged at £375bn. It also decided to maintain the base rate of interest at 0.5% this month and this marks the 50th month that the Bank Rate has remained at this all time low level. The Bank of England has recently announced the appointment of a new Bank Governor, Mark Carney, former Governor of the Bank of Canada, an economy that fared far better than many other Western economies following the global financial meltdown. Mr Carney is said to favour other forms of central bank intervention, so it will be interesting to see if Quantitative Easing (QE), the current Governor’s preferred method of direct intervention, will stay, or if we will see a new policy direction. Following the recent budget announcements in relation to the Government’s Funding for Lending scheme (FLS), it has now been confirmed that the scheme will be extended at least until 2015. One of the objectives of this policy was to reduce the cost of borrowing for Banks and Building Societies, and, thereby offer mortgage borrowers and small and medium sized enterprises access to cheaper mortgages and loans for businesses. The policy appears to be having the desired effect as at the beginning of May 2013, average 2, 3 and 5 year fixed rates had once again all fallen further to 3.82%, 4.13% and 3.96% respectively. Not surprisingly with rates at these historic low levels, borrowers continue to be firmly committed to fixed rate mortgage products with 9 in every 10 transactions during April being conducted on a fixed rate basis.In addition to reducing the cost of mortgage products, lenders have continued to steadily increase overall product numbers, with the number of mortgage products typically available to intermediaries rising once again in April to 6,742, a further increase of 1% over March.” To see if you could take advantage of these low rates whether you are remortgaging or buying for the first time, or to discuss your circumstances in more detail, call Nigel Bull on 0117 9325686, email him at nigelb@mab.org.uk or contact the MAB local mortgage specialist at your nearest Besley Hill office. Note: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

HOUSE PRICES HIT RECORD HIGH FOR APRIL

House-sellers have hiked their asking prices to the highest amounts ever recorded in the month of April amid further signs of a recovering market, a property search website has revealed. MailOnline reports that Rightmove found that the gap between the sums that sellers are asking and actual selling prices has also narrowed, indicating that sellers are having to negotiate less and buyers are in a position to pay more. Asking prices rose by 2.1% month on month to reach £244,706 on average, which is the highest figure recorded by the research for the month of April and stands just £1,500 below an all-time high set in June 2012. Rightmove, whose records go back for more than a decade, tipped next month for a new asking price high, as a combination of confidence returning to the market this spring and a shortage of properties for sale continue their upward pressure on prices. Across England and Wales, London was the only region where asking prices took a dip in April, falling by 0.5%, although at £493,635 on average they are still 6.2% higher than a year ago. East Anglia saw the biggest month-on-month asking price jump, with a 4.4% rise taking typical prices to £224,538. Miles Shipside, director of Rightmove, said: “With London prices pausing for breath this month but likely to bounce back next, May looks like an odds-on bet to deliver a new asking price record. 'More estate agents are reporting more activity in more segments of the market.' The year has got off to a promising start for house sellers, with asking prices now £15,717 or 6.9% higher than they were at the start of 2013, following monthly price increases for every month of the year so far. On a year-on-year basis, prices are up by 0.4% and the latest rise follows a new high for asking prices recorded for the month of March which was set last month. Lenders, estate agents and surveyors have been reporting signs of a pick-up in the housing market since the Government launched a scheme called Funding for Lending last August, which has prompted an increase in mortgage availability. Lenders have also been offering some of their lowest ever mortgage rates. Rightmove said that while some of the uplift in asking prices has come from a more positive view of the market generally, a shortage of homes coming up for sale is also pushing prices upwards, as buyers compete for fewer fresh properties. The website said that the run of houses coming to market in April was 4% down on a year ago. Homes are spending around 73 days on the market before they are sold, which is 10 days less than in April 2012. Rightmove said that comparing its asking price figures with the price houses are actually selling for, which is recorded by the Land Registry, the gap has narrowed from 3.39% in December to 2.95%. Mr Shipside said: “This indicates that sellers are negotiating less and buyers are willing or able to pay more. While the discount from the asking price on an individual property is very much a product of how realistic that price was, it is a sign of a recovering market if they are paying closer to what sellers ask.' A further indication of the improving situation comes with a Daily Mail story about an authoritative report which states that property sales will bounce back and a rejuvenated housing market will boost economic recovery this year. The Ernst & Young Item Club, an independent forecaster whose full quarterly analysis comes out tomorrow, admits official figures due in 11 days might show Britain has technically fallen into a triple-dip recession, but says the trend is towards recovery. The report will say an expected million property sales, helped by Government measures to boost mortgage lending, will lift the economy. Growth will also be raised by increased consumer spending as a result of tax cuts announced in last month’s Budget. “Clearly, the indications are that the property market has turned the corner and is now well on the road to recovery,” said Adam Offer, managing director of leading independent south west estate agents, Besley Hill, whose 16 offices confirm a strong resurgence of interest from home-buyers in Bristol and Gloucestershire.

HOUSE SALES REACH THREE-YEAR PEAK

The amount of homes sold in the UK reached a three-year high during March as increased confidence in the market continued to translate into sales, says the latest RICS housing market survey. In March, chartered surveyors reported selling an average of 17.4 homes over the previous three months, the highest number since March 2010. Confidence has been slowly returning to the UK housing market since the end of 2012 and transactions have also risen for three consecutive months. This increasing stability was mirrored by prices as respondents across the country reported practically no movement during March. A net balance of just one per cent more surveyors reported price falls (from -7%), meaning house prices across the UK have now been relatively stable for six months. Moving on to demand, an increasing number of prospective buyers got out and viewed property during March. A net balance of 11% more surveyors reported rises in new buyer enquiries, the highest reading since October. It seems that government’s recent efforts to encourage banks to offer more affordable mortgages may now be starting to bear fruit and assist purchasers. Meanwhile, the amount of homes coming onto the market was little changed last month. Two per cent more surveyors reported rises rather than falls in new instructions, meaning that the shortfall of fresh stock coming to the market remains a key issue for buyers. At a regional level, the survey suggests that, on average, surveyors in the West Midlands have seen the biggest increase in homes sold since the start of the year, followed by those working in the London area. During March, chartered surveyors in the South West reported selling an average of 17 homes, increasing slightly on February’s figure of 16. Looking ahead, respondents are optimistic that the recent increase in transactions is set to continue. A net balance of 19% more surveyors expect sales to rise further over the coming three months. Moreover, price expectations indicators for both the next three and twelve months have been in positive territory for the last four months. Peter Bolton King, RICS Global Residential Director, said: “A buoyant, healthy property market is central to economic recovery and, while these are still very much early signs, it is encouraging that sales are beginning to pick-up. The increase in potential buyers getting out there and viewing property is particularly encouraging.” Adam Offer, managing director of leading South West estate agents, Besley Hill, said that feedback from the group’s 16 offices throughout Bristol and Gloucestershire confirmed that, thanks to initiatives such as Funding for Lending, mortgages are becoming more accessible to buyers, which is gently easing the pressure on the market and freeing up stagnant chains.

HOUSE PRICES ARE RISING

House prices are rising in Bristol and South Gloucestershire, according to figures from the Land Registry, the Government Agency which monitors the sale of houses. The average house in Bristol now costs £169,425 - an increase of 2.4 per cent over the last 12 months - while homes in South Gloucestershire are even more expensive at £176,839 - an increase of 1.4 per cent over the last year. The nationwide average currently stands at £162,606 - which is an increase of one per cent over the last 12 months. "These figures show that house prices in Bristol and South Gloucestershire are performing better than most other parts of the country," said Adam Offer, managing director of estate agents Besley Hill, who have 16 offices throughout the area. "Limited supply and increased demand will result in property values in this part of the country continuing to rise during the coming year, indicating that now is a good time to buy."

FIXED-RATE MORTGAGES ARE LOWEST FOR FIVE YEARS

Borrowers are enjoying the lowest fixed rates the mortgage market has seen for over five years. The trend has been welcomed by Nigel Bull, one of a team of Mortgage Advice Bureau (MAB) financial advisers serving Besley Hill Estate Agents offices throughout Bristol and Gloucestershire, as a benefit for both house buyers and those seeking to refinance existing deals. Mr Bull, based at Longwell Green, said: “As expected, the Bank of England’s Monetary Policy Committee followed a familiar pattern in February with its decision to maintain the Bank of England base rate at 0.5% and keep the programme of emergency funding in the form of quantitative easing unchanged at £375bn. The base rate has been at this low level for almost four years and there are no signs that this will change any time soon. Indeed, many forecasters are now suggesting that the base rate will remain unchanged until 2015 and possibly longer. The government programme to stimulate lending in the wider economy - Funding for Lending (FLS) - does seem to have kept the rate war within the mortgage industry raging on, and we have continued to see further falls in average interest rates over the last few months. At the beginning of February, the average 2, 3 and 5 year fixed rates stood at 4.11%, 4.36% and 4.14% respectively - the lowest levels since our records began. When the FLS initially launched, the most attractive rates on offer were still targeted at those with substantial deposits. However, we are now seeing increasingly attractive rates higher up the loan to value (LTV) curve. For example, headline 2 year fixed rates are now available at below 3.50% for those with only a 15% deposit, and under 4% for a 5 year fixed product. For those who do have substantial deposit and or equity of 40%, borrowing is even more attractive with 2 year deals available under 2% and 5 year deals under 3%. Borrowers remain increasingly focused on fixed initial rates, with more than nine in ten of our borrowers electing to fix during both December 2012 and January 2013. Almost all lenders will be looking to increase their overall level of mortgage lending this year and, as a consequence, we fully expect to see continued healthy competition in the market, benefiting not only house buyers, but also those looking to refinance existing arrangements.” To see if you could take advantage of these low rates, or to discuss your circumstances in more detail, call Nigel Bull on 0117 9325686, email him at nigelb@mab.org.uk or contact the MAB local mortgage specialist at your nearest Besley Hill office. Note: Your home may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

HOUSE PRICES TO RISE 2% IN 2013

House prices in the UK will see an increase of 2% over the course of next year while the cost of renting a home should rise by around 4%, according to the Royal Institute of Chartered Surveyors (RICS). Although challenging times are still ahead for the nation’s economy, 2013 may see some slight improvements and this will be reflected in the housing market. In addition to rising prices, the number of transactions will also see a further increase, moving up just over 3% to 960,000 (from 930,000 in 2012). Although this represents an improvement, to put this in context, total sales in 2006 were well above this amount at 1.67 million. In London, the prime central market is likely to be broadly stable following the tax changes announced earlier in the year but much of the rest of the capital will continue to see above average increases. Elsewhere, the South East and the North West should also see modest rises. The rest of the country will either see prices dip slightly or remain flat. Meanwhile, with estimates stating that up to a quarter of loans taken out at the height of the market (2007) now being in negative equity, the recent trend in repossessions looks set to continue. However, with the number of possession claims and mortgages currently more than three months in arrears falling, the number of repossessions should dip below 35,000 for the first time since 2007. 2013 UK housing market at a glance: • House prices to increase 2% • Cost of renting to grow 4% • Transactions to modestly increase to 960,000 • Repossessions to drop to below 35,000 • Housing starts to edge up towards 115,000 in England Simon Rubinsohn, RICS Chief Economist, said: “The average house price in the UK looks set to rise by a further 2% next year, despite the uncertain outlook for the economy. More positively, the amount of sales going through should also see an increase across the country, climbing to its best level since 2007, as the Funding for Lending scheme helps boost the availability of mortgage finance. But these tentative signs of recovery in the sales market should not blind us to the very real problems that still exist. Even with the Funding for Lending scheme and some other government policies beginning to be felt in the mortgage market, many first-time buyers will continue to find it difficult to secure a sufficiently large loan to take an initial step on the housing market. Meanwhile, the alternative of renting is becoming more and more costly with a further increase in rents likely in 2013. Critically, the government needs to ensure that the conditions are in place that will enable the stock of new housing, whether for purchase or rent, to rise more rapidly.”

LOTS WITH POTENTIAL AT BESLEY HILL AUCTION

Lots offering buyers scope to put their own stamp on a property are included in Besley Hill's auction sale at the BAWA Pavilion Lounge, Southmead Road, Filton, on Thursday, December 6, starting at 7.00pm. One of the homes requiring some modernisation work, 5 Glendale, Downend, which has a guide price of £300,000-£375,000, is a detached chalet-style four-bedroom house with detached double garage, generous grounds/gardens and extensive driveway. Also in need of refurbishment and repair is 4 Engine Common Lane, Yate, guide price £175,000-£225,000, a detached bungalow situated in a semi-rural location with three bedrooms, wet room and large gardens. A grade II listed property which would benefit from updating, 33 High Street, Wickwar, Wotton-under-Edge, guide price ££230,000-£250,000, is a four/five bedroom character cottage in a popular village location with good-sized enclosed gardens. Another grade II listed cottage requiring refurbishment, 5 ChurchEnd, Eastington, Stonehouse, near Stroud, has been sold prior to auction. In need of renovation at Fishponds, 2 Forest Road, guide price £100,000-£120,000, is a spacious natural stone-fronted three-bedroom end-terrace house. A 1930s end of terrace three-bedroom house with double garage,188 Glenfrome Road, Eastville, guide price £125,000-£150,000, also requires modernisation. Shop premises currently let and first floor flat in need of updating at Fishponds, with a guide price of £80,000-£100,000, would suit an investor or builder. A modern three-bedroom detached house with integral garage, 5 Winton Lane, Totterdown, guide price £165,000-£175,000, comes with a south-facing courtyard laid to decking. “Auction is a fast and effective method of sale so the buyers of all these properties will be able to look forward to completion on their purchase at the start of the New Year,” said auctioneer Nigel Freston. For a brochure or further information call the auctioneer’s office on 0117 970 1551 or access the brochure online at www.besleyhillsurveyit.co.uk

HOUSING MARKET RECOVERY IS ON THE WAY

Positive signs of a recovery in the housing market in the coming months are indicated by the latest Rightmove House Price Index. Prices are up by 2% (+£4,617) year-on-year – the highest annual rate of increase seen in November since 2007 and still up by 0.2% year-on-year with the ‘London effect’ removed. Further encouraging signs for the market include: Rightmove search activity up 20% and enquiries up 11% on same time last year. Supply tightening in lower price brackets pushing up prices on terraces and flats by over 4%. Bank of England reports mortgage approvals up 9.2% on last quarter. The House Price Index shows an even more marked improvement in the South West where there is a year-on-year average price increase from £246,874 to £254,021 – an annual increase of 2.9%. Adam Offer, managing director of leading South West estate agents, Besley Hill, endorsed the Rightmove findings. “All the reports we are getting from our 15 branches throughout Bristol and Gloucestershire suggest that we can look forward to a better year ahead,” said Mr Offer.

THE FUTURE IS BRIGHT FOR THE HOUSING MARKET

Prospects for the housing market have improved considerably with the publication of a new economic forecast and the expectation that house prices in parts of Bristol will soar when the main rail line to London is upgraded.
Ernst & Young predicts that the UK economy will rebound in the second half of this year and grow by 1.2 per cent next year, boosted by a housing market revival next spring.
In its Item Club autumn forecast, it says that an improving outlook for consumers and easing credit conditions are paving the way for a housing market recovery. Housing transactions are expected to bottom out this autumn before recovering in spring, with house prices set to follow.
Ernst & Young Item Club chief economic adviser Peter Spencer says: “The latest credit conditions survey shows one of the biggest headwinds facing the UK has now begun to ease – lending has started to loosen up and we are hopeful the housing market is primed for a recovery early next year.”
In the longer term, the cost of buying a house in parts of Bristol, including areas like Totterdown and Bedminster close to Temple Meads station, will leap by up to 20% with the electrification of the rail line between the South West and London.
Adam Offer, managing director of leading South West estate agents Besley Hill, said: “The electrification of the line will take 20 minutes off the journey time between Bristol and London, slashing it to one hour and 20 minutes, so more people will be encouraged to commute between the two cities.
“This will inevitably create increased demand for properties near to Temple Meads and affluent areas in and around Bristol from people working in London who become attracted by the idea of enjoying the lifestyle here and commuting to the office.. As a result, property values will soar.”

MORTGAGE LENDING REACHES TWO-YEAR HIGH

Mortgage lending for homebuyers reached a two-year high in August, according to figures from the Council of Mortgage Lenders (CML). Some 55,300 loans were advanced for house purchase during the month worth £8.4 billion, representing an 11 per cent increase on a year ago and the largest number of loans seen since July 2010, the CML said. Lending to first-time buyers is up by a fifth on a year ago with £2.8 billion worth of loans advanced, only just below the levels seen in March when the ending of a stamp duty concession for this sector prompted a rush of people looking to complete deals. Mortgage availability has been increasing since an £80 billion funding for lending scheme was launched at the start of August, although much of this has so far been concentrated around people with larger deposits of at least 20 per cent. Adam Offer, managing director of leading South West estate agents, Besley Hill, said the CML data was consistent with an upsurge in mortgage applications being handled by Mortgage Advice Bureau (MAB) representatives at Besley Hill’s 15 offices throughout Bristol and Gloucestershire. “There are indications that funding for lending is having a positive effect on the market with several lenders cutting their rates recently,” said Mr Offer.

BRISK BIDDING EXPECTED AT BESLEY HILL AUCTION

Auctioneer Nigel Freston is expecting some competitive bidding at Besley Hill’s property auction at the BAWA Pavilion Lounge, Southmead Road, Filton, on Thursday, October 25. He enjoyed a 100% success rate at their auction last month when all available lots were sold or under offer. Particular interest is likely to be shown in 5 ChurchEnd, Eastington, Stonehouse, near Stroud,pictured, a pretty Grade II listed end-terraced cottage in need of refurbishment. Offered with a guide price of £180,000, the property comprises two reception rooms, kitchen/dining area, two/three bedrooms, study landing area and utility room, together with potential off-road parking space. An impressive three-bedroom period bay-fronted house, 4 Balaclava Road, Fishponds, guide price £125,000-£145,000, has a converted roof space and a large modern garage workshop. Two of the lots, described as ideal investment properties, are purpose built one-bedroom flats with a guide price of £65,000. The first floor 7 Atlas Close, Speedwell, and the ground floor 6 Whiteway Court, St George, both come with allocated parking spaces. Bids will also be invited for two commercial properties: Unit 2B Balaclava Industrial Estate, Balaclava Road, Fishponds, guide price £120,000, a 2,000 sq ft ground floor industrial unit with 1,150 sq ft first floor mezzanine area and three parking spaces, and Gloucester House, Gloucester Street, Avonmouth, guide price £150,000-£175,000, a 3,900 sq ft approx self-contained commercial building and yard with secure boundary, which has potential for refurbishment/redevelopment. For further details view the auction catalogue online at www.besleyhillsurveyit.co.uk or contact the auctioneer’s office at 10 Badminton Road, Downend, Bristol BS16 6BQ, tel 0117 970 1551 , email info@besleyhillsurveyit.co.uk

CHOICE OF PROPERTIES AT NEXT BESLEY HILL AUCTION

Five contrasting properties will be sold to the highest bidders at Besley Hill’s next auction, to be held at the BAWA Pavilion Lounge, Southmead Road, Filton, on Thursday, 20 September. First under the hammer, with a guide price of £70,000, suitable for a developer/investor, will be 17 Glen Park, Eastville, a period mid-terraced two-bedroom house in need of refurbishment. Knoll View, Wotton Road, Wotton-Under-Edge, which has a guide price of £90,000-£100,000, is a two-bedroom 18th Century coach house in need of renovation with a large garage/workshop and studio, and front garden with parking. An attractive 1950s three-bedroom detached house requiring renovation, 60 Charnhill Drive, Mangotsfield, has a guide price of £225,000-£250,000. A modern kitchen and bathroom, central heating, double glazing, good decorations and gardens are features of a purpose-built flat, 6 Stourden Close, Frenchay (guide price £60,000-£80,000). The final lot, Gloucester House, Gloucester Street, Avonmouth, guide price £150,000-£175,000, a self-contained 3,900 sq ft approx commercial building and yard with secure boundary, has potential for refurbishment/development. For further details view the auction catalogue online at www.besleyhillsurveyit.co.uk or contact the auctioneer’s office at 10 Badminton Road, Downend, Bristol BS16 6BQ, tel 0117 970 1551, email info@besleyhillsurveyit.co.uk

UK HOUSE PRICES REBOUND IN AUGUST

The price of a typical UK house increased by 1.3% in August, according to the latest Nationwide House Price Index. Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: “UK house prices rose by 1.3% in August, the largest monthly increase since January 2010, reversing the declines recorded in the previous two months. Given the difficult economic backdrop, the extent of the rebound in August is a little surprising. However, we should never read too much into one month’s data, especially since monthly price changes have been impacted by a number of one-off factors this year, such as the ending of the stamp duty holiday for first time buyers. These are factors that cannot be controlled by the usual process of seasonal adjustment. Nevertheless, the fact that the annual pace of house price decline moderated to -0.7% in August from -2.6% the previous month provides evidence that conditions remain fairly stable. This may be explained by the surprising resilience evident in the UK labour market, with further increases in employment in recent months, even though the UK economy has remained in recession.” How much have the housing and mortgage markets changed since the financial crisis? Mr Gardner commented: “L P Hartley famously said that ‘the past is a foreign country, they do things differently there’. In many respects these sentiments apply to the UK housing market, with a marked difference between current conditions and those prevailing between 2005 and 2007. Perhaps the most dramatic change is in the level of activity. For example, the average number of mortgage approvals is currently running at around 50,000 per month, around half the level prevailing over the 2005-2007 period. Interestingly, the share of mortgages taken up by first time buyers has actually increased slightly to 39% of the total, up from the 37% prevailing in the pre-crisis period. The more cautious approach of borrowers and lenders is evident in the increase in the average deposit from 10% to 20%. Affordability has improved on a number of metrics. Interest rates on both fixed and variable rate mortgages have declined. Together with a modest decline in house prices and a steady rise in average earnings, the monthly repayments for a typical first time buyer with a 20% deposit have declined to around 29% of take home pay, down from 40% before the crisis. In practice the decline is slightly more pronounced than this. Borrowers, especially first time buyers, have been increasing the term of their mortgage in recent years. The average term for first time buyers is currently 28 years, up from 25 years over the 2005 to 2007 period. While this increases the total amount repaid over the term of the loan, it lowers the monthly repayments.” Will we return to the pre-crisis pattern? Mr Gardner said: “The evolution of housing market conditions in future is likely to be closely tied to the trajectory of the wider economy. The number of housing transactions should pick up as the UK recovery gathers pace in the years ahead, though this is likely to be a gradual process. Policy measures aimed at supporting the availability of credit and lowering the cost of borrowing, such as NewBuy and the Funding for Lending scheme, should help to provide support. However, much will depend on developments in the labour market. Increased job security, lower unemployment and stronger earnings growth will be needed to generate a sustained upturn in activity. Though uncertain, a modest further improvement in affordability is likely. Interest rates will not remain at current lows forever, but rate hikes still appear some way off. Further asset purchases by the Bank of England should also help to keep down longer-term interest rates. In addition, house prices are expected to remain fairly stable over the next two years, while incomes are likely to continue to rise gradually, which will also help to support affordability.“

HOUSE SALES ARE UP THIS YEAR

Besley Hill, Bristol and Gloucestershire’s biggest independent estate agents, with 15 offices throughout the region, are enjoying rising house sales. “We have seen a 25% increase in sales on the year to date, so it’s looking much better than last year,” said managing director Adam Offer. This improving picture is confirmed by figures from HM Revenue & Customs (HMRC), which show that, despite the recession, home sales so far this year are up from 2011. Completed property sales in the first half of the year were 11% up on the same period last year, the data from HMRC reveal. Sales rose by 7,000 in June to 83,000, taking the total across the UK for the first six months of the year to 431,000, an increase on the 387,000 recorded in the first half of 2011. Last week, the Council of Mortgage Lenders (CML) said its members' total lending, to both house buyers and those just switching lenders, for the first half of the year, was 7% higher than in the same period last year. “One factor boosting sales and borrowing in the first half was the reintroduction of stamp duty for first-time buyers on homes worth up to £250,000,” said Adam Offer. “Some buyers pushed through their purchases in the early months of the year, to beat the reintroduction of the tax on 24 March.”

ESTATE AGENTS' BIKE RAFFLE PRIZE

Every year, Besley Hill Estate Agents at Downend donate a bike as a raffle prize for the St Augustine of Canterbury Primary School Summer Event. The school and parish have been running different summer events for over 40 years and this year’s fete is being held on Saturday, June 30, within the grounds of the school in Boscombe Crescent, Downend. “Everyone is welcome to come and join in a really fun family day out," says Sue Mulrenan, one of the parents organising the event. Picture shows Sue and David Vincent, director of Besley Hill Estate Agents’ Downend office, with the bike to be won in the raffle.

FOUR-BEDROOM BUNGALOW WITH GRANNY FLAT

A four-bedroom detached bungalow, The Laurels, situated in a desirable location at Over, just outside Almondsbury, comes with a self-contained granny flat. Accessed via a secure gated entrance, the attractive 1930s bay-fronted property has been extended and modernised to incorporate flexible and versatile accommodation which also includes an en suite to the master bedroom. Occupying a delightful rural setting with large established private gardens and tandem garage/carport, the bungalow is on the market with Besley Hill Town & Country Homes at Thornbury for £485,000. “This home could suit either the growing family or those with a dependent relative,” says branch manager Andrew How. “Alternatively, the bungalow could interest someone in search of a property with a private office to run a small business from home.” For further details and to arrange a viewing, contact Andrew at Besley Hill Town & Country Homes, 57 High Street, Thornbury, Bristol BS35 2AP, tel 01454 411522, email thornbury@besleyhill.co.uk

EXECUTIVE HOME IN COUNTRYSIDE LOCATION

If you are in search of something a little off the beaten track, then Besley Hill Town & Country Homes at Thornbury have a property at Berwick Close, Compton Greenfield, a hamlet near Easter Compton in South Gloucestershire, which could be just what you are looking for. Enjoying a delightful semi-rural setting on a exclusive development of just three detached homes, this executive-style four-bedroom detached home is surrounded by open countryside yet just a short drive from Bristol, Cribbs Causeway and junction 17 of the nearby M5 motorway. The deceptively spacious property, which is on the market for £410,000, provides flexible and versatile accommodation with a wealth of appealing features, including separate receptions, a large kitchen/breakfast room, cloakroom, utility and en suite to the 20ft master bedroom. A top-quality conservatory off the lounge opens directly onto beautifully tended private south- facing rear gardens which are adjacent to fields alive with native wildlife such as.foxes, badgers, rabbits and birds. A double attached garage with additional parking on the driveway are an added benefit of this highly desirable family home. For further details and to arrange a viewing, contact Besley Hill Town & Country Homes, 57 High Street, Thornbury, Bristol BS35 2AP, tel 01454 411522, email thornbury@besleyhill.co.uk

HUGE COTTAGE HAS LOTS OF POTENTIAL

The Old Post Office at Aust, which is for sale from Besley Hill Town & Country Homes at Thornbury for £450,000, is a huge character cottage with scope for a wide range of uses. In addition to providing ample family accommodation, having five bedrooms and five reception rooms, the property has a private rear garden with outbuildings, an old bakery, extensive garaging and secure car parking for numerous vehicles. Selling agent Andrew How says: “Although the house is very much a home for the large or growing family, it could also be of interest to a car enthusiast or, subject to obtaining the necessary permission, a purchaser in search of a property in which to start a business because this is a vast area with fantastic potential for further development.” The Old Post Office, which still has a traditional red telephone box and postbox outside, is located in the heart of historic Aust just a short stroll from the 13th century church and the village pub. Although some cosmetic updating may be desired, the cottage has been extensively refurbished and modernised within recent years, including a new roof in 2009, “As substantial character property of this nature is very rare, we would encourage early appointments to view,” adds Andrew How. For further details and to arrange a viewing, contact Andrew at Besley Hill Town & Country Homes, 57 High Street, Thornbury, Bristol BS35 2AP, tel 01454 411522, email thornbury@besleyhill.co.uk