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