HOUSE PRICE INFLATION HITS 10.5%

The annual rate of UK house price inflation has hit double figures for the first time since June 2007, according to the Nationwide.
The building society said that house prices in the UK had risen by 10.5% in the year to the end of April.
Prices rose by 1% in April to push the cost of the average home to £167,802.
"There has recently been evidence of a slight shift in the supply-demand balance," said Martin Gahbauer, the Nationwide's chief economist.
"While the recovery in new buyer enquiries at estate agent offices appears to have petered out, the last few months have seen an increase in the level of new instructions from sellers.
"All else equal, this could lead to a gradual flattening out of the recent upward price momentum," he said.
The building society's figures show that prices in the past three months were just 1.1% higher than in the preceding three months.
That was the slowest three-month on three-month rate since June last year and reflects the fact that much of the annual increase in prices has been due to the rebound in prices that took place last summer.
Despite the revival in prices, which has taken many commentators by surprise, activity in the property market is still relatively subdued.
This has been due to the enforced rationing of mortgage funds provoked by the credit crunch and the banking crisis that started in 2007.
This means the average first-time buyer still has to put down a 25% deposit to secure a mortage.
The most recent figures from HM Revenue & Customs (HMRC) showed that completed sales in the UK jumped by 22% in March from the month before to 72,000.
However, apart from last year, that was the lowest March figure since the HMRC's current records started in 1978.
"The strong rebound in house prices over the last year has taken place within the context of a subdued mortgage market, with the number of mortgage advances across the industry still well down on pre-crisis 'norms'," Mr Gahbauer said.

FAMILY HOME WITH PLENTY OF PARKING SPACE

You won’t have any parking problems if you buy a family-sized three-bedroom semi-detached home currently on the market on Charlton Road, Brentry.
For the house is set back from the main road with a driveway suitable for parking at least five cars leading to an “oversized” garage.
“The property is extremely well presented and has a warm family feel throughout,” says Darren Head from Besley Hill Estate Agents at Bishopston.
The house, priced at £249,950, has been extended to the side and, on the ground floor, offers a light entrance hallway, office with cloakroom (possible downstairs bedroom for elderly parent), bay lounge, dining room and fitted kitchen.
On the first floor are three bedrooms, one of which has an en-suite shower, and a large family-sized bathroom with bath and separate shower.
Behind the 19-metre rear garden is land with full planning consent for one one-bedroom flat, four two-bedroom flats, one three-bedroom end terrace house with attached garage and parking for eight cars with an asking price of offers in excess of £250,000.
For further details of 231 Charlton Road and an appointment to view, contact Darren Head at Besley Hill Estate Agents, 66 Gloucester Road, Bishopston, Bristol BS7 8BH, tel 0117 924

ENTERING THE BUY TO LET MARKET

Patrick Ennis, John Simmons, Nigel Bull and Mark Gregory, financial advisers from Mortgage Advice Bureau (MAB) based at Besley Hill Estate Agents’ offices throughout Bristol and Gloucestershire, comment on entering the Buy to Let market
Buy to Let – should I or shouldn’t I? In the recent economic climate many potential investors question whether to enter the Buy to Let market.
When house prices first started to fall, many experts warned that Buy to Let investors might run scared, potentially prompting a house price crash. This didn’t happen – in fact, just a few months ago some reports suggested Buy to Let was booming, benefiting from larger numbers of people renting and cheaper property prices.
The National Landlords Association (NLA), the leading representative body for private-residential landlords across the UK, represents almost 20,000 individual landlords. According to Simon Gordon of the NLA, research shows that renting is no longer the ugly sister of the property market.
”Increasing numbers are attracted to renting, as a simpler, more flexible alternative to home ownership. Gone is the view that renting is the only option for those who can’t afford to get on the property ladder. Nowadays there are property savvy renters who prefer not having to worry about home repairs or concerns about making ends meet with potentially volatile interest rates,” he said.
Buy to Let loans are based on the property’s value and its rental potential and, although the market for Buy to Let Mortgages is not as good as it once was, there are still deals available.
Q. Is it the right time?
A. Despite uncertainties over the future of the Property Market in the UK, the Buy to Let sector is predicted to grow, a marked turnaround from early last year. The three key reasons for an increase are:
1. More opportunities for people seeking flexibility and mobility with rented properties
2. Younger generations finding it more socially acceptable to rent rather than buy
3. A rise in the traditional rental market
Q. What benefits are there to become a landlord?
A. Now may not be a good time to sell so why not turn it around and let your property out? There are a number of benefits. Here are some key ones:
1. Long term investment
2. A steady sum of income, depending on where your property is and rental charges
3. Considerable tax advantages (tax breaks offered to landlords who rent out their property)
Q. Should I self manage or get a letting agent to manage?
A. There are pros and cons of self managing. Self managing allows you to keep your variable costs down; if you find tenants and manage the property yourself you could save money. Bearing this in mind, you will need to find suitable tenants, draft up an appropriate tenancy agreement, ensure it’s signed properly, and check references. In addition to doing all this, you will need to be first in line for any maintenance problems.
However, if a letting agent managed your property it will save you all the hassle of running around, as the agency will do all the leg -work on your behalf.
Helpful Information
Landlord Association
Landlord Associations are a good place to start as the advice and information will be invaluable. Three of the more well-known Landlord Associations to join are:
• National Federation of Residential Landlords
• National Landlords Association
• Residential Landlords Association
Landlord and Buy- to- Let Show
The Landlord and Buy- to- Let Show is the largest and longest established private rented sector show with shows at London Olympia in March and September and also in mid November at Birmingham NEC. You can visit the following link to view more information http://www.landlordshow.com/home.asp
Buy to Let Mortgages
Buy to Let Mortgages are specifically designed for investors to borrow money to purchase property in the private rented sector in order to let it out to tenants.
Typically, the interest rates that are offered on Buy to Let mortgages are fairly close to residential mortgage rates but will on average be higher and you will typically be charged higher fees. This is due to the perception amongst banks and other lending institutions that Buy to Let mortgages represent a greater risk than residential owner-occupier mortgages. It is therefore essential that potential investors seek independent mortgage advice to ensure they secure the most suitable deal for their circumstances.
For further information on Buy to Let mortgages, contact Patrick Ennis (Fishponds, Downend, Easton and Kingswood), John Simmons (Bedminster, Bishopston, Bishopsworth and Whitchurch), Nigel Bull (Longwell Green, Chipping Sodbury and Knowle) and Mark Gregory (Dursley, Stroud, Thornbury and Wotton-Under-Edge) at your local Besley Hill Estate Agents office, www.besleyhill.co.uk
Note:
Your property may be repossessed if you do not keep up repayments on your mortgage.
There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.
A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £95.

FURTHER SIGNS OF HOUSING MARKET RECOVERY

The housing market has showed further signs of a spring revival as asking prices rose by 2.6 per cent over the past month, according to figures.
Property website Rightmove said the average price of a UK property rose to £235,512 between March 7 and April 10 in a marked improvement of the 0.1 per cent lift the month before.
The number of new homes coming on to the market also rose, with buyers enjoying the greatest choice since October 2009.
Also, mortgage lending soared by nearly a quarter to £11.5 billion last month as the traditional spring buying season got off to a good start, new figures showed.
Gross mortgage lending in March was 24 per cent higher than in February and three per cent up year on year, with lending in the first quarter reaching £29.5 billion, according to the Council of Mortgage Lenders.
And in Bristol more than 40 prospective buyers queued up to view new flats, the earliest hopefuls arriving six hours early before 5.00am at the former Megabowl site in Ashton, where 184 apartments were on offer from £99,995.
"It has been some time since I last saw people queuing up to purchase properties," said Richard Gadd, regional sales and marketing director for Taylor Wimpey.

SPACIOUS FAMILY HOME WITH ANNEXE

This individually-built home at Longwell Green, priced at £760,000, has a self-contained annexe suitable for a live-in relative.
Offering spacious family accommodation, 45 Court Farm Road is set in large, attractive gardens backing onto fields.
“Only by an internal viewing can this property be fully appreciated,” says the agent, Lynne Derrick, of Besley Hill Town & Country Homes at Whitchurch Village.
The main house comprises four bedrooms, one en-suite bathroom, lounge, dining room, solid oak kitchen, utility room, study, shower room, small garden room and double-glazed conservatory.
The annexe has independent heating controls and a bedroom with walk-in wardrobe, shower room and open plan kitchen/lounge/dining room.
The extensive, well-maintained rear garden includes a patio area, lawns, ornamental garden with pond, rockery, raised flower beds, vegetable/fruit plot and an abundance of well-established trees and shrubs as well as garden sheds and a greenhouse.
For further details and an appointment to view, contact Lynne Derrick at Besley Hill Town & Country Homes, 91 Bristol Road, Whitchurch Village, Bristol BS14 0PS, tel 01275 891444, email whitchurch@besleyhill.co.uk

Spring is in the air!

Besley Hill have noted that the number of people wanting to buy or sell homes has picked up in the past month.

The firm confirmed the number of potential sellers rose in March to its highest level for 12 months. This finding was confirmed by the National Association of Estate Agents (NAEA).

The number of prospective buyers rose by 7% last month also.

The NAEA said spring had brought its usual increase in activity, and suggested sales would improve in the coming months. "Spring has finally arrived and brought with it a much needed boost to the housing market, particularly among sellers," said Gary Smith of the NAEA. "This figure has been low in recent months and this is a welcome indication that reflects a growing confidence that the recovery is well underway."

Encouraging signs

Earlier this week, a survey by the Royal Institution of Chartered Surveyors (RICS), some of whose members also work as estate agents, reported that the number of people trying to sell their homes last month had reached its highest level since May 2007.

According to the NAEA's survey, the average number of homes for sale at each of its member's branches rose from 56 in February to 60 in March.

At the same time, the number of house hunters registered with each branch went up by 7% last month, to 274 per branch.

Sales have also risen, the NAEA said, from an average of 6.8 per branch in
February to eight last month.

The NAEA said all this was encouraging, especially with more sellers around.
"This month's figures reveal an increase in the levels of housing stock with more properties available for sale per branch - the highest value recorded over the last six months," the NAEA said. "More house-hunters also registered their interest. With the bad weather now behind us buyers and sellers alike are returning to the market with a renewed vigour," it added.

Source BBC News 16.04.10

Election Manifestos 2010 - Who's promising what?

Now all the three main parties have released their manifestos we can look at possible changes and effects to the Housing Market in England and Wales.

Here is a summary of each parties’ main proposals:

Labour

• 110,000 new homes over the next two years either to rent or buy
• 10,000 Council Houses per year by the end of the next Parliament
• A further tightening by increasing restrictions on repossessions of homes
• FSA to be responsible for regulation of all mortgages; transferring second home loans often used by subprime lenders into the more vigorous FSA regime
• All new homes to be carbon zero (does anybody really know what that actually means) by 2016
• Press ahead with construction of so called “eco towns” will be pressed

Conservatives

 A permanent exemption for first time buyers from Stamp Duty on homes up to the value of £250000.
 Abolish Home Information Packs (HIPS) because of “significant problems”
 Keep Energy Performance Certificates
 No one would be forced to sell their home for unsecured debt under £25000

Liberal Democrats

o A Mansion Tax on all properties worth over £2,000,000 payable at 1% (per annum?) on the value above the £2,000,000 threshold
o Stamp Duty Avoidance measures introduced to ensure Stamp Duty is not avoid by the use of Offshore Trusts
o Stop major housing developments in flood risk areas
o Close loopholes in development of playing fields without proper planning procedures
o Scrap “burdensome Home Information Packs (HIPS)”
o Turn Northern Rock back into a Building Society

Initial Thoughts:

Labour has concentrated least on the Housing Market.

This may fall under Gordon Brown’s pledge not to get in the way of the recovery from recession.

No new policies have been put forward, and one would have to take the pledges on house building with a pinch of salt.

Conservatives have “called” Alastair Darling’s Stamp Duty holiday for First Time Buyers and “raised” it by making it permanent. It is a shame that they did not go the whole hog and be more democratic by giving the exemption to all buyers under the £250,000

Conservatives have followed up with their pre election pledge to abolish HIPs. Their emphasis however may belie a lack of enthusiasm. The pledge to abolish HIPs did not even merit a sub paragraph let alone a full paragraph.

The press has not picked up on this part of the manifesto, and whether there will be much enthusiasm post election remains to be seen.
Any new Government's priorities will lie elsewhere, and if HIPs were abolished, it might be towards the end of the next Parliament in 2014/15

The Conservatives commitment to keeping the Energy Performance Certificates is somewhat strange as this is already embodied in European legislation. They have not said whether the requirement will 10 yearly which is the European requirement or every occasion when a property is sold which is the present legal position in England and Wales.

Liberal Democrats have the most pledges that might affect the Housing Market. They will be deeply unpopular with Developers by stopping major developments on flood risk areas.

Asset rich but cash poor owners of “Mansions” will have additional yearly tax to pay on their homes. A punitive tax as it is based on non income producing assets.

There is no mention on Stamp Duty. Who is to know whether turning the Northern Rock into a Building Society will be in the public interest given the amount of taxpayer bailout it has received.

The Lib Dems have also ganged up on HIPs and want to scrap them whilst again keeping (as they would have to anyway) the Energy Efficiency Certificate.

The Lib Dems opposition to HIPs is new as Vince Cable the Lib Dem’s Treasury spokesman is on record as saying that although HIPs were "badly timed and have added extra cost and friction [nevertheless] now they’re here, it’s not sensible to abandon them”.

There we have it: Hardly designed to set the pulses racing.

In essence not much between the parties to cement or differentiate and with the possible exception of HIPS, hardly any obvious vote catcher.

Thanks to Paul Hajek at Actionmove - www.actionmove.co.uk for the above analysis.

http://www.actionmove.co.uk/site/blog/election_manifesto_2010_and_the_housing_party_.html