TWM Property Consultants

TWM Property ConsultantsAddress: 3 Hardman Street, Spinningfields, Manchester, M3 3HF, United Kingdom Telephone: 0161 227 7823http://www.twmproperty.co.uken-gbinfo@twmproperty.co.ukwww.AcquaintCRM.co.ukThu, 17 May 2012 12:00:00 GMThttp://www.acquaintcrm.co.uk/customers/TWMP/logo.gifTWM Property Consultantshttp://www.twmproperty.co.uk2 Bedroom Apartment, Liverpool £175,000.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=225St Gabriels House is a magnificent former CONVENT CONVERTED to a high standard.Choice of seven two bedroom luxury apartments,luxury fitted kitchens with integrated appliances.Located amongst many Grade II listed properties and adjoining Princess Park. Wed, 16 Jan 2008 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=2250 Bedroom Land, Failsworth £265,000.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=239The property comprises of a cleared site at Failsworth currently with planning permission for 13 Apartments but alternative proposal have also been submitted to change to 6 x 3 Storey town houses. The planners have no objections. OFFERS INVITED.Tue, 18 Nov 2008 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=2391 Bedroom Apartment, Eastlands £100,000.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=206Converted Apartment incorporating refurb with new build. Situated on the outskirts of Manchester within easy reach of the City Centers major shopping area, INVESTMENT OPPORTUNITY part of existing portfilio offered PRE TENANTED or VACANT POSESSION.Thu, 20 Aug 2009 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=2061 Bedroom Apartment, Eastlands £112,000.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=227Converted Apartment within gated development incorporating refurb with new build, situated just on the outskirts of the City Centre providing some breathing space,Larger than average at (580 sq ft) offered PRE- TENANTED or VACANT POSSESSION.Fri, 11 Dec 2009 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=2272 Bedroom Apartment, Ellesmere Park £142,500.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=333Top Flooor apartment located within the CONSERVATION AREA OF ELLESMERE PARK , a gated development with intercom system,integrated appliances,master bedroom with en-suite,large open- plan fitted kitchen/dining communal gardens,allocated car parking space.Thu, 14 Jan 2010 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=3335 Bedroom Semi-Detached, Davenport Park £450,000.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=341A superb development of SIX SUBSTANTIAL EDWARDIAN semi- detached properties steeped in character and history all properties offering grand accommodation over three floors, plus cellars, garages, large gardens and block paved driveways.Fri, 05 Feb 2010 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=3413 Bedroom Mews, Baguley £132,000.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=347Well presented Three Bed Mews Property. Modern Fitted Kitchen. Lounge /Dining Room, Double Glazing, Patio Doors, Off Road Parking, Garage To The Rear,close to Wythenshawe Hospital, PRE-TENANTED great opportunity for portfolio investor.Fri, 26 Mar 2010 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=3472 Bedroom Apartment, Wirral £140,000.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=222A Development of Executive Apartments with Communal Entrance Hall, Reception Hall,Lounge with Balcony, Fitted Dining Kitchen,Two Bedrooms with En Suite.Bathroom,The courtyard has access via electric gates.Parking included suitable for First Time Buyer.<BRWed, 09 Jun 2010 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=2222 Bedroom Apartment, Manchester £159,950.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=351Modern contemporary spacious (765 sq ft)3rd floor apartment,open plan lounge/kitchen,integrated appliances,2 bedrooms master with en- suite,great location,close to vibrant City Centre its shops, restaurants,bars and entertainment.Mon, 14 Jun 2010 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=3512 Bedroom Hotel Room, Cape Verde £114,000.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=327First European 5-Star rated operation on Sal Island. FULLY MANAGED HOTEL OPERATOR RENTAL SCHEMES. Increasingly sophisticated tourist facilities, two new golf courses designed by Ernie Els, and plans for an upmarket marina,beach front location.Fri, 22 Oct 2010 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=3271 Bedroom Apartment, Piccadilliy £122,950.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=355Completely refurbished Seven Storey block of exclusive apartments within the City Centre,The Apartment is on the Sixth Floor,Piccadilly gardens and train station are close by along with the centres offerings of bars, shops, clubs, cinemas and restaurants.Thu, 03 Feb 2011 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=3552 Bedroom Apartment, Manchester £159,950.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=356Modern contemporary spacious (765 sq ft)3rd floor apartment,open plan lounge/kitchen,integrated appliances,2 bedrooms master with en- suite,great location,close to vibrant City Centre its shops, restaurants,bars and entertainment.Wed, 13 Apr 2011 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=3562 Bedroom Apartment, Manchester £159,950.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=357Modern contemporary spacious (765 sq ft)3rd floor apartment,open plan lounge/kitchen,integrated appliances,2 bedrooms master with en- suite,great location,close to vibrant City Centre its shops, restaurants,bars and entertainment.Wed, 13 Apr 2011 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=3571 Bedroom Apartment, Gleadless Townend £84,995.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=359The four storey development will offer 1 & 2 bedroom apartments providing comfortable living accommodation for today’s lifestyles.There is allocated car parking to each of the apartments.The area is well served by local amenities and public transport. Fri, 13 May 2011 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=3590 Bedroom Land, Italy £1,500,000.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=362In summary the island lies about 7 kms (4.5 miles) off the mainland in the Province of Oristano off the west coast of Sardinia with an area of approximately 81 hectares (200 acres) measuring about 2 kilometres (1.25 miles) at it`s longest point.Fri, 15 Jul 2011 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=3623 Bedroom Semi-Detached, Old Trafford £195,500.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=363A substantial traditional bay- fronted semi-detached property offering spacious accommodation with a wealth of character,The property retains a host of original features such as high ceilings and coving.Ideal opportunity for the growing family or couple.Tue, 26 Jul 2011 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=3632 Bedroom Apartment, Sheffield £121,000.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=299A stylish development of just 24 apartments, built to an extremely high standard by a local master builder,2 bedroom with ensuite secure parking, lift to all floors.Located near Northern General Hospital.close to local amenities.IDEAL FIRST TIME BUYER.Wed, 17 Aug 2011 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=2992 Bedroom Apartment, Ellesmere Park £550.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=369AvailableTop Floor apartment located within the CONSERVATION AREA OF ELLESMERE PARK,integrated appliances,master bedroom with en-suite,large open- plan fitted kitchen/dining.Ideal for professionals or couples.Wed, 24 Aug 2011 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=3691 Bedroom Apartment, Gleadless Townend £84,995.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=372The four storey development will offer 1 & 2 bedroom apartments providing comfortable living accommodation for today’s lifestyles.There is allocated car parking to each of the apartments.The area is well served by local amenities and public transport. Fri, 09 Dec 2011 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=3721 Bedroom Apartment, Gleadless Townend £84,995.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=373The four storey development will offer 1 & 2 bedroom apartments providing comfortable living accommodation for today’s lifestyles.There is allocated car parking to each of the apartments.The area is well served by local amenities and public transport. Fri, 09 Dec 2011 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=3732 Bedroom Apartment, Gleadless Townend £119,995.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=374The four storey development will offer 1 & 2 bedroom apartments providing comfortable living accommodation for today’s lifestyles.There is allocated car parking to each of the apartments.The area is well served by local amenities and public transport. Fri, 09 Dec 2011 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=3742 Bedroom Apartment, Gleadless Townend £119,995.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=375The four storey development will offer 1 & 2 bedroom apartments providing comfortable living accommodation for today’s lifestyles.There is allocated car parking to each of the apartments.The area is well served by local amenities and public transport. Fri, 09 Dec 2011 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=3752 Bedroom Apartment, Gleadless Townend £119,995.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=376The four storey development will offer 1 & 2 bedroom apartments providing comfortable living accommodation for today’s lifestyles.There is allocated car parking to each of the apartments.The area is well served by local amenities and public transport. Fri, 09 Dec 2011 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=3764 Bedroom Terrace, Old Trafford £800.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=377On offer larger than average 4 bedroom terraced house in Old Trafford, The property benefits from double glazing,laminated flooring, carpets to upper floors, large fully fitted kitchen with full integral units. 3 mins to Trafford Bar Metro Station.Fri, 03 Feb 2012 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=3773 Bedroom Semi-Detached, Middleton £575.00http://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=378We are pleased to offer this Modern 3 bedroom house with double glazing, integrated kitchen,gas central heating and off road parking.Located close to 24hr Tesco Store,3mins walking distance to local transport,North Manchester Golf Club within easy reach.Mon, 26 Mar 2012 12:00:00 GMThttp://www.twmproperty.co.uk/propertydetails.aspx?PropertyID=378Hips Now Set For 1st August 2007 For Mandatory Implementation.http://www.twmproperty.co.uk/newsdetails.aspx?ID=1000There can now be no doubt in anyone`s mind that HIPs are coming. The passing of the revised Home Information Pack Regulations in Parliament on 29th March 2007 represents a major milestone in the HIP timetable, offering clarification and industry wide reassurance that Home Information Packs (HIPs) will now happen on 1st August this year Independent dry runs in Manchester have been running since Nov 2006 and have proved a great success with Estate Agents and Consumers alike. High priority is to be given to an Energy Efficiency Reports to tackle climate change and reduce carbon emissions. What’s in a HIP? A look at what a HIP is likely to contain - including terms of sale, evidence of title, standard searches, planning consents, agreements, building control certificates, warranties and guarantees, a Home Condition Report and an Energy Performance Certificate (EPC) - demonstrates that it is not something a seller will want to undertake alone. Every home put on the market must have an Energy Performance Certificate (EPC) as part of the pack independently assessed and rated by a Domestic Energy Assessor. Of course, the introduction of HIPs is just one piece of the jigsaw in the government`s overall objective to speed up the house buying and selling process. Another key Act will be the implementation of e-conveyancing. Since The Land Registration Act 2002 (the Act) which provided the legislative framework to enable the implementation of e-conveyancing services, the Land Registry has been developing its e-conveyancing proposals and drafting the secondary legislation required to give effect to the provisions contained in the Act. The recent launch of the Land Registry`s `Chain Matrix` system which allows buyers and sellers to view their chain electronically, is another major step toward a smoother and speedier buying and selling processWed, 09 May 2007 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1000100% Ltv Funding For Property Renovationhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1001This exclusive product provides access to people in the building trade and DIY enthusiasts to fund renovation and refurbishment projects. Up to 100% of the purchase price is available for periods between 2 months and 12 months provided the applicants can evidence the ability to fund the necessary materials and/or labour to increase the property value to its true market value. Advances in excess of 100% are available providing a suitable residential or commercial property is available for security on a second charge basis to provide the funds to restore/re-furbish the property. Properties can be purchased via any source including auctions, provided the funding level is pre - approved. Advances can be arranged in 48 hours to enable clients to secure a bargain. There is no set criteria on property type, condition or structure provided that the necessary work can be carried out within an agreed budget and a given time scale, and the applicant has the expertise available for such a project. This is an exclusive product further details available on request.Wed, 09 May 2007 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1001Discounted Investment Propertieshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1002New builds can offer a far more attractive and simplified purchase to the prospective investor. With excellent discounts to be gained from the builder`s list price you can be sure of snapping up a bargain, while knowing exactly the price you are paying for a brand new, quality property in move-in condition. New build properties also offer an alternative for investors looking to buy a brand new apartment at an affordable price, quite often growth potential has taken place during the build programme. When purchasing property it is normally possible to borrow money from a lending institution to help fund the purchase. The majority of lenders will advance up to 85% and in some cases 90% of an investment property’s value, therefore allowing you to build a portfolio of properties with a personal investment of as little as 10-15% of the total purchase price, provided of course you buy correctly Good Criteria : The obvious criteria for good property investment are the need for a young professional population; a good local economy; demand being greater than supply and the benefit of having a large local amenity to provide potential tenants with. Areas with lots of colleges and universities, hospitals and general opportunities for work provide the most attractive lettings Leverage : Leverage is the term used to describe the investing of little or none of your own money, whilst borrowing the majority of the requirement, to obtain substantial financial gains. Because of the widespread availability of Buy-to-Let mortgages, investors are able to leverage their money and achieve massive percentage gains from a relatively small investment. In some cases the discount negotiated by Investors can be used to subsidise the capital required on a buy to let mortgage. The deposit is paid for in part, or sometimes in full, by the discount offered. If you are looking to buy a new property for investment, or as a home owner, now could be the ideal time to buy.Wed, 09 May 2007 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1002Buy - To - Lethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1003Buy–to–let has undoubtedly been one of the success stories of the UK mortgage market. The market is driven by demand and the confidence of the investor that the asset will be rented and that over the medium to long term will rise in value. According to a recent “Changing UK Housing Market” report commissioned by the Alliance and Leicester, the buy-to-let market will grow by 40 per cent in the next decade. Although there is little doubt that the most important single decision in making a successful BTL investment is choosing the right property, the right choice of mortgage to fund the investment is emerging as a greater priority. The market has changed so has the types of mortgages required. It is an environment that specialist lenders in particular are familiar with. These lenders have built on a foundation of finding solutions for borrowers with complex credit circumstances and are well placed to transfer these skills to provide products for customers with more complex investment requirements. Buy–to–let has become a more sophisticated market and lenders are taking a much more pragmatic approach. Many have had to diversify their approach, offering a variety of products in different sectors, it is the non-conforming BTL that is now set to be the main growth market. The increase in interest rates is a double-edged sword for BTL investors. Higher interest rates may make their mortgage more expensive, but they also mean that would be first-time buyers are again priced out of the property market and have to abandon their plans to buy. With the continued increase in demand, the younger generation preferring to rent as it becomes more socially acceptable and house prices continuing to rise due to lack of supply, there is no reason to doubt the forecast for the future of BTL.Thu, 10 May 2007 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1003Secured Loans Revolutionhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1004The face of the loan sector has changed beyond recognition over the past few years, improved business practices and industry guidelines have helped to rid the market of bad practices. There is a growing awareness that secured loans offer a viable alternative to other forms of secured borrowing, such as remortgaging and further advances. Secured loans are particularly likely to appeal to borrowers keen to avoid early redemption charges and other fees as a result of remortgaging, or, who by doing so, would loose the benefits of favourable fixed term rates. With more than half the current mortgages on such terms, this represents a sizeable market. The bridging loan has also emerged as a real alternative to what we all regard as conventional lending, and with the increase of the number of people falling into some form of arrears, secured and unsecured loans are proving to be very popular. Many people are unable to move upwards on the property ladder, a large number of these people are taking out loans to add value to their existing property, such as adding conservatories or an extension to their property. Second charge loans could also be ideal for a credit impaired borrower who wants to raise cash or consolidate other debts, but who does not want to remortgage the entire debt because switching from the mainstream home loan to a specialist product would be more expensive than taking out a second charge loan. Another possibility would be the self-employed person who needs to find extra business funding but does not want to remortgage their property to raise the money. There are many situations when a remortgage is not the best option for a customer and the most suitable alternative could well be the secured personal loan. Thu, 10 May 2007 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1004Online Conveyancinghttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1005A major criticism of the house buying process is that it’s too slow, with potential pitfalls and hold-ups lurking around every corner. While England and Wales have the cheapest conveyancing in Europe, they also have the slowest systems. At a simple level e-conveyancing is the application of IT to the conveyancing process and is designed to greatly speed up the process. Under an e-conveyancing system authorized solicitors, licensed conveyancers, estate agents, lenders and others are able to conduct business with each other and the Land Registry using a private, secure nationwide network. Professional who are involved will have access to the necessary information to undertake all stages of the conveyancing process electronically, to help them to transfer property ownership and register interests quickly. Solicitors will be able to draw up and “exchange” contracts, draft deeds and documents, deal with mortgage offers and complete and register purchases electronically. The e- conveyancing system will have greater transparency meaning those involved in the house buying transaction can easily obtain information about what’s going on. Because the entire file is electronic the client is able to access it on the internet. The client has there own inbox and can view correspondence going between solicitors, lenders, local authorities and searches on a secure web page. They can also reply to correspondence electronically. The big advantage that not only is the client more informed and therefore feels more in control and empowered, but it also speeds things up. E-Conveyancing Services Why not benefit from our online e-convayancing quotation service. Choose from a nationwide panel of hand picked accredited law firms all offering competitive prices along with online case tracking. Our carefully selected range of independent firms will help make sure that buying or selling your home is made as simple as possible. All cost are provided up- front so there are no nasty surprises with the added security of a guaranteed “No Move No Fee” service. For further details please see our conveyancing page. Sun, 20 May 2007 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1005Ruth Kelly Announces The Delay Of Hip Implementation,http://www.twmproperty.co.uk/newsdetails.aspx?ID=1006Ruth Kelly made an announcement yesterday regarding the delay of HIP implementation, due to a concern that there will be a lack of qualified DEA`s ready for 1st June. HIP`s and EPC`s will now be implemented on a phased basis from August 1st. The packs (including energy performance certificates) will, at first, be required on four-bedroom properties and larger, with packs for the smaller properties becoming compulsory in the second phase. This second phase is likely to commence soon after 1st August because it is clear Ruth Kelly had concerns that not enough DEA`s would be ready and certified by 1 June and she has explained that as they become available she will speedily re-introduce the rest of the market place i.e. houses with less than 4 bedrooms. The minister also said that until the end of the year vendors can market their properties as soon as they have commissioned a HIP, as opposed to having to wait until the pack has been received. The announcement is positive because it proves the Government is serious about bringing HIPs in, making sure all of the necessary processes are in place and that enough Domestic Energy Assessors are qualified in time. TWM can offer advice on the new regulations along with a complete HIPs service. Wed, 23 May 2007 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1006Building Blockshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1007The launch of new planning rules will make it easier for owners to build home improvements such as extensions and loft conversions. In the new white paper from the government, planning rules are to be amended to allow homeowners to undertake certain building jobs without the need for formal planning applications and approval so long as there are no objections from neighbours. Local authorities are struggling to cope with the volume of planning application. The move has been implemented to ease bottlenecks suffered by many planning authorities, as well as reducing the estimated £1,000 cost the public faces when lodging simple building applications, the majority of which are approved. Essentially the rule change will enable planning bodies to focus on developments designed to improve their local area by removing from their remits major national projects, which will be handled by another planning authority, and low level building plans like home improvements. By removing nationally significant projects and the minor developments from this process they should be able to focus their resources on schemes such as new residential development and the regeneration of their areas. A lot of time and money is currently wasted unnecessary in a complicated system. Funding Advice It`s important that borrowers seek out advice from intermediaries to spell out the advantages and disadvantages of the various funding option available to them. There are four ways in which homeowners can fund home improvements: remortgage the property, take out a further advance from the existing lender, have a second charge from a different lender our take out a personal loan. Adding Value The new rules should make selling easier. The additions to the homes will increase their value and thereby encourage sales. Extensions and loft conversions are equally beneficial to the homeowner, but the addition of an extra bedroom will add far more value to the properties final selling price. The relaxation of planning permission rules will certainly make it easier for homeowners to add value to their properties. Mon, 23 Jul 2007 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1007House Price Growth ‘to Continue’http://www.twmproperty.co.uk/newsdetails.aspx?ID=1008The average house price is now nearly 11 times the national earnings and will rise by a further 40 per cent in the next five years, it has been claimed. Research published by the National Housing Federation (NHF) predicted that the average house price in the UK would exceed £300,000 by 2012. The NHF paper, entitled ‘ Home Truths’ found only seven locations in England had property prices within reach of four times average salary, while Kensington and Chelsea and South Buckinghamshire had prices 20 times above the average annual wage. According to the report, continuing house price rises and the resulting housing crisis are set to be with us for a long time. Home owners may see this as good news, but it carries a sting in the tail. A growing number of parents will find themselves subsidising their son’s and daughters mortgages. Across the UK, more people are going to find themselves priced out of the market and struggling to find a decent home. The NHF believed that supply had fallen further behind demand, and implored the government to follow through with the promise for three million new homes by 2020. It also insisted that social housing had a large part to play in helping low – income families and key workers. Sat, 06 Oct 2007 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1008Buy-To-Let Remains Resilient.http://www.twmproperty.co.uk/newsdetails.aspx?ID=1009Buy-to-let remains strong even while the main market is showing signs of weakness, according to specialist lender Paragon Rental yields are stable, over all returns are steady and landlords are adding to their portfolios. The firms September But-to-let index showed that rental yields were holding firm at 6per cent. Average rentals in August were £10,626, while rents had risen by an average 2.4 per cent over the previous 12 months. Total annual returns were averaging 10.3 per cent, up from 9.4 per cent three months ago. And landlords have been continuing to buy in softer markets conditions, in response to growing tenant demands and rising rents. The company said that buy-to-let is benefiting from growing tenant demand as potential house buyers are less able or willing to take on a mortgage in the current environment. Sat, 06 Oct 2007 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1009New Site Development Reward.http://www.twmproperty.co.uk/newsdetails.aspx?ID=1010The government has pledged 3500m to reward councils that open up new sites for development, to meet its ambition of 240, 000 new homes a year. Housing and Planning Minister Yvette Cooper has announced a series of incentives, to be provided through the new housing and planning delivery grant for councils to maximise the available building land and speed up supply. `We want to give more support to communities and councils who are doing their bit to deliver the extra homes we need Ms Cooper said` The package announced last week also encouraged environmentally- friendly construction and design and emphasises the use of brownfield sites. Sat, 06 Oct 2007 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1010First Step On The Ladder.http://www.twmproperty.co.uk/newsdetails.aspx?ID=1011Times have changed. We have seen from the research carried out how the character of the first time buyer has changes in recent times, from one focused upon marriage and the family to a person geared towards independence and self worth. Balancing the ideal with the possible within the planning of a house purchase is a taxing process for the first time buyers. Many a compromise and many an adjustment have to be made as decisions are taken about space, setting, furnishings and as new unforeseen living costs have to be met. A recent study by GE Money Home Lending revealed some surprising yet encouraging results. Virtually every first time buyer that took part in the study confirmed that they will be working to a strict budget when looking for their first home and working to a budget in the face of notoriously high prices for homes, even at the lowest end of the market. A picture that also emerged was one of cost pressures driving an understandable search for economies in a context where perhaps the full financial implications of owning and running a new home are not quite as burdensome as many would anticipate. Of those who have entered the market over the last three years, the average cost of a first home was just under £148,000. Unsurprisingly with the increase in property prices, those who are buying over the next three years anticipate having to spend up to £165,000. Given that the biggest compromise made by first time buyers relate to floor space and type of property, it will be inevitable that some people will be disappointed at what they can afford – but equally some may be over-estimating just how big a financial stretch it really is to reach the first rung on the property ladder. For the first time buyer, home costs can be the equivalent of up to 30 per cent of annual household income. In the first year of owning a new home the average new UK homebuyer spends over £11,000 in ‘getting on the ladder’, setting up home and household running costs, according to the research. These costs are in addition to the expected cost of servicing the mortgage. Sat, 06 Oct 2007 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1011Property Investor Benefitshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1012 Property investor benefit Property investors and developers with stock to shift are to benefit from proposed tax changes announced in the chancellor’s budget. An unexpected shift in the Capital Gains tax (CGT) to a standard 18 per cent will mean a huge saving of 22 per cent for top rate tax payers. For the buy-to-let investor rather than pay a potential 40 per cent under the existing system on property appreciation, prior to any taper relief, which is now planned to be withdrawn, as of April 2008 an investor will incur a single flat rate of 18 per cent from the offset. Taper relief encourages people to hold onto assets with the amount of gains taxable gradually reducing, which reduces the tax bill to the Chancellor when they come to sell. The Capital gains allowance before facing tax at all remains at £9,200, this is likely to increase next year. There will be some losers. Lower rate tax payers who have held assets for a long time under taper relief would pay only 12 per cent and are now facing 18 per cent amounting to an increase of 8 per cent. The change will come into force next April if ratified in Parliament. Fri, 19 Oct 2007 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1012First-Time Buyers-Undeterredhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1013First-Time Buyers- Undeterred The recent dip in the property market shows no sign of putting off first-time buyers, according to figures from online finance portal Fair Investment. Despite a drop in overall mortgage enquiry figures over the last three months compared with the first quarter of 2007, Fair Investment’s data shows that the number of first-time buyer enquiries has increased from an average of 56per cent in January, February and March up to 73 per cent for August, September and October. Although figures for those wanting 100 per cent mortgages remained fairly constant, the percentage of 100 per cent mortgage enquiries made by first- time buyers has increased from 77 per cent in the first quarter to 92 per cent over the last three months. James Caldwell, Fair Investment director, said. `The demand for 100 per cent mortgages has shot up over the past year. Britain’s love affair with the property market is far from over, despite the recent dip and the gloomy forecast for the next few years` It seems first-time buyers have not been put off making enquiries, they perceive that this is possibly their last chance of getting their foot on the ladder, rather than trying to get on the ladder when house prices rise every time you blink. Fri, 09 Nov 2007 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1013Good News For Property Investorshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1014The Bank of England’s inflation report heralds good new for home-owners and property investors, property experts have claimed. Inflation will hit the targets for the forthcoming year and growth will slow and inflation will rise in the near term, the bank said in its November inflation report. Looking further ahead, the bank said that the outlook is for a return of growth to its average rate and inflation to the target. David Austin, managing director of property investment consultancy Property For Life, said `The Bank of England’s announcement that inflation will hit the target for the forthcoming year is encouraging news for customers.` The way now seems to have been left open for a reduction in the base rate early next year, although customer spending is reported to have remained buoyant, the property market has become more subdued, with rising repossessions. Homeowners and property investors should be encouraged by the banks signal that rates will shortly be on the way back down, relieving the recent pressure of increased repayments. Recent predictions suggest that interest rates will fall next year with three cuts a likely possibility, in fact many are expecting rates to first fall in early 2008 finishing at around 5 per cent by next December. Thu, 22 Nov 2007 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1014New Builds Show Recovering Growthhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1015Smartnewhomes.com new homes index and migration monitor has revealed the first increase in new house prices since July this year, with the top end of the market showing the strongest growth. Penthouses recorded a 2.7 per cent growth in September, compared to the UK’s overall 0.7 per cent growth, while the average new build price in October was £25,760. The rise in new house prices was deemed a sign of returning confidence to the new homes sector. Smartnewhomes.com said top end buyers were not as alarmed by the current difficulties in the financial market and the popularity of penthouses looked set to continue. However, the year-on-year price change for penthouses was still down 7.4 per cent compared to the average 0.7 per cent new house price growth. It added that the incentives offered by developers prior to year end had encouraged buyers to take advantage of deals such as paid Stamp Duty or discounted prices. The economic basis for the housing market is still relatively strong and there is still demand. The bottom end of the market is lacking confidence and is influenced by the media, whereas people who have more experience are still prepared to invest. Tue, 04 Dec 2007 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1015December 14: Hips For Everyonehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1016Home Information Packs are to be rolled out to the entire residential sales market. Starting from Friday December 14th all properties including one and two bed homes must have HIPs. Two major concessions have been made by the Government. First, the transitional arrangements for the first day marketing have been extended until June 1st. This means that HIPs will only have to be ordered when a property is put up for sale, and not in place. This arrangement should have ended on January 1st however on-going delays with searches, forced the delay.Second, leasehold HIPs will only have to have the actual lease in the contents. Delays in getting management information were also such that the Government was forced to make the concession, which again last until June 1st. Reaction to the roll out has been mixed even among the HIP providers. Dominic Toller director of marketing and new business at LMS said `We are delighted. The anti-HIP camp is going to have to face the facts now. We urge RICS, the Law Society, CML and other trade bodies to accept that HIPs are now a done deal. It is time for everyone in the industry to make this a workable initiative and help, rather than hinder the revolution in house buying that is long overdue. It is clear that HIPs have not had the negative impact that many have claimed. The Government itself has acknowledged that the downward trend in the number of properties brought to the market is due to a number of factors and largely to wider economic conditions. In fact, with so few buyers around, it is actually an advantage that the market is not flooded with speculative seller at the moment. Fri, 14 Dec 2007 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1016Confidence Prevails In Buy-To-Let Sectorhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1017Buy-to-let (BTL) investors remain upbeat about the prospects of the market in 2008, according to research by Mortgage Express. The study, which contradicts recent reports of a slowdown, showed that 60 per cent of landlords are undaunted by the negative reports, with 86 per cent of investors planning to increase their portfolio over the coming months or leave it untouched in 2008.The average size of the respondents portfolio currently stood at 6.1 properties, an increase from an average of 5.7 six months ago. Of the 3,867 landlords surveyed, 95 per cent were confident rental yields would remain robust, with a third believing they would increase. Rental yield were remaining steady at 5.72 per cent, according to the data, with the highest level of rent being commanded in the East Midlands and Scotland. The South West had the strongest rental growth, up 7 per cent since October 2006. Jeremy Law, head of BTL at Mortgage Express, said` With brokers continuing to play a key role in influencing a landlord’s decision when it comes to choosing a mortgage, they will have an important role to play in the continuing success of BTL`. Investors with assets to back the investments will be in a very strong position, However, for the new BTL investor it may prove a little more difficult. Sat, 15 Dec 2007 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1017Investors Have Positive Perspective On 2008http://www.twmproperty.co.uk/newsdetails.aspx?ID=1018• 94% of landlords say tenant demand will rise or remain stable in 2008 • In response to demand, landlords plan to grow their portfolios over the next 12 months • The average landlord’s portfolio, worth £1.46 million now, is expected to increase in value by 1.6% over the next 12 months • Less than 5% of the typical portfolio is new build • Based on a survey, carried out in November 2007, of 200 landlords who have been in the industry for almost 14 years and in aggregate hold around £300 million in residential property investments. Britain’s residential landlords remain confident about the buy-to-let market in 2008, supported by accelerating levels of demand for rented accommodation. According to Paragon mortgages survey of 200 landlords, 27% said that tenant demand is currently either booming or growing, with 66% describing it as stable. However, when asked about the outlook for 2008, 42% of respondents said they believe that tenant demand will either boom or grow over the next 12 months, with 52% believing it will remain stable. In this environment, investors remain firmly committed to their portfolios, contrary to media reports that suggest landlords will begin to sell property in 2008. The average portfolio currently comprises 11 properties worth £1.46 million, and landlords expect the value of their portfolio to rise by an average of 1.6% over the coming year and to modestly grow the size of their portfolios in 2008. John Heron Paragon mortgages’ managing director, says: `The coming year presents significant opportunities for landlords. Demand for rented accommodation will accelerate, as homebuyers delay property buying decisions, and inward migration and other demographic factors place continued pressure on the housing stock.` "Growing competition for private rented properties is pushing up rental incomes and overall returns. This upward trend is expected to continue into 2008, as yields see upward pressure. In addition, landlords are dispassionate purchasers and are well placed to secure good deals on properties, helping to increase the supply of rented homes and meet demand from tenants.` `That is the key driver of the buy-to-let market – customer need. Successful landlords only purchase properties for which they know there will be strong demand from tenants, who typically prefer terraced houses and flats in established areas. From landlords’ responses, it is clear they remain upbeat about prospects for the private rented sector over the coming year.` Tue, 08 Jan 2008 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1018Housing Stock Hits Record Level.http://www.twmproperty.co.uk/newsdetails.aspx?ID=1019The value of UK’s housing stock has been valued at £4 trillion by Halifax. Based on data from Halifax House Price Index database, the Communities and Local Government, the Scottish Executive and the Welsh Assembly, the Halifax Annual Review presented a positive view of the market. Its findings reveal a rise of almost 9 per cent in 2007, with housing stock tripling in price over the past decade. Housing equity increased by nearly 2 trillion over the past decade. Housing equity increased by £198 billion in 2007 and has seen an average annual increase of £185 billion over the past five years, Halifax suggested. In comparison to outstanding mortgage debt, which currently stands at around £1.2 trillion, the value of private housing stock was almost three and a half times the value of outstanding debt. To divide the U.K., the value of housing assets in the South was 5.5 per cent at £2.2 billion compared to £1.8 billion in the North. However, the North/South housing wealth gap narrowed over the past five years with the South accounting for 61 per cent in 2002 and the North for 39 per cent. Martin Ellis, chief economist at Halifax, commented: `U.K. home owners have collectively accumulated an extra £2 trillion of equity in their homes over the past decade as property prices have risen. This has significantly strengthened the household balance sheet. Mortgage debt accounts for only 30 per cent of the value of the U.K’s £4 trillion worth of housing assets.` Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said: `Unless inflation proves an increasing barrier to the Bank of England’s ability to lower Base Rates there is unlikely to be a material decline in house prices.` Sat, 19 Jan 2008 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1019Slower Cuts Will Lead To Lower Interest Rateshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1020It has been predicted that interest rates will fall further the slower the Bank of England cuts them. That is according to Capital Economics, which believes that the base rate will eventually fall to just four per cent. It is good news for people with mortgages, although many will be hoping that interest rates will be cut sooner rather than later. "The markets are increasingly coming round to our view that the slower the MPC [Monetary Policy Committee] cuts interest rates, the further interest rates might eventually have to fall," read a statement from Capital Economics. "While the markets` expectations for where interest rates will be in June have remained broadly stable over the last month, their expectations for where rates will be in June next year have fallen sharply. "With inflation worries likely to increase over the coming months, we think that this move has further to go. We still think that interest rates will eventually fall to four per cent, but they are unlikely to get there until sometime next year," it continued. People with mortgages received a boost in February when interest rates were cut to 5.25 per cent. Anthony Zahra Tue, 12 Feb 2008 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1020Btl Impact On Uk House Priceshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1021The buy – to- let market has led to a market increase in consultancy prices across the country, a report by the National Housing and Planning Advice Unit (NHPAU) has found. The paper, entitled ‘ Buy-to-let Mortgage (BTL) Lending And the Impact On House Prices’, showed that BTL had led to an increase in house prices of 7 per cent between 1966 and 2007, equating to an average property price growth of £13,000 across the UK. Although the paper strived to indicate that the impact of the BTL market on prices had been minimal compared to other forces, such as changes to levels of disposable income and interest rates, the technical report concluded that the 7 per cent house price price growth attributed through BTL growth could have priced a number of potential buyers out of the housing market. The paper also detailed economic and social benefits that the sector had bought to the wider housing market and in its statement suggested that: ‘A downturn in BTL lending could potentially create modest downward pressure on house price inflation.’ Peter O’Donovan, mortgage manager at Bestinvest, was unsurprised by the results. He commented:`BLT has become a lot more accessible for more people, and more people have become interested in property as an investment due to the uncertainty in other areas such as pensions, which has led to an increase in prices.` Andy McQueen, managing director of UCB Home Loans and The Mortgage Works, welcomed the report, suggesting that the 7 per cent increase had led to an average mortgage payment increase of £90. He said.` This report will highlight the positive benefits to the economy that a healthy BTL market can bring.` Wed, 13 Feb 2008 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1021House Prices Up In Februaryhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1022The revival of the UK housing market appears to be in full swing, with the latest index showing that prices increased by 3.2 per cent in February. Rightmove has published its housing market report, which looks at prices in the four weeks to February 9th. It reveals that the average UK property is now worth £237,856, compared to just £230,428 in January. The firm has put the rise down to fewer properties being put onto the market, partly due to the introduction of Home information packs. However, Miles Shipside, commercial director of Rightmove, said that a number of factors have buoyed the market although he does not believe that prices are set to boom just yet. "Most sellers obviously want to achieve as much as possible for their property, and traditionally they choose to test a more ambitious price early in the year as they have plenty of time to adjust it down later," he commented. "This is compounded by estate agents being eager to have fresh property on their books and there being fewer to go round, leading to the temptation to try a higher figure. "It`s not the start of another price boom, but the interest rate cuts have no doubt given some sellers headier hopes," added Mr Shipside. The National Association of Estate Agents recently revealed that house prices, housing stock and registered buyers increased in January. Anthony Zahra Mon, 18 Feb 2008 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1022Stamp Duty Revision Unlikely - Ricshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1023It may be too late for the chancellor to amend stamp duty tax in the Budget, according to the Royal Institution of Chartered Surveyors. Pressure has been increasing on Alistair Darling to cut stamp duty tax in his first Budget to preserve market buoyancy and consumer confidence but with the Budget only one month away there may be too little time for a potential revision on fiscal policy, according to Simon Rubinsohn, chief economist of RICS. Mr Robinsohn believes that with the income from stamp duty set to fall with the volume of transaction it is clearly an opportune time for a rethink, but for the moment it is too near-term. Ronan Marrion, a mortgage specialist of financial advisory firm Worldwide Financial Planning, thinks a cut or freeze would be welcome, especially since the additional expense of HIPs, He said `Things are getting ridiculous with legal fees and stamp duty. Nowadays stamp duty is another large barrier, especially for second-time buyers. A cut would defiantly attract more people to the market. The government could lift the threshold of minimum payment to £250,000. The threshold figure does not reflect inflation and should be rectified, you cannot buy much in the UK for under £125,000` Stamp duty today is at 1 per cent on homes between £125,000 and £250,000. 3 per cent over £250,000 and 4 per cent over £500,000. In 1992 John Major, then Conservative Prime Minister, shelved stamp duty for eight months on property transactions under £250,000 to stimulate the housing market. A similar strategy could save families up to £2,500 today but could cost the Exchequer around £100m a month. In 1997 stamp duty amounted to £675m annually, a decade later it amounts to £6.4bn. Mon, 25 Feb 2008 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1023Average Rents Are Risinghttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1024Average rents have risen 4% during the first quarter of this year and 12% over six months to reach a new record of more than £1,000 per month, says Paragon Mortgages.The firm, which has suspended buy-to-let lending because of the credit crunch, is maintaining its Buy-to-Let Index, and the latest shows that average rents now stand at £12,041 annually. The lender says buoyant demand for rented homes is placing a strain on the stock of private rented sector accommodation, creating upward pressure on rents. A third of landlords report that tenant demand is expanding rapidly, the highest figure for almost four years, while a further 58% say it is strong and stable. Paragon says yields have remained stable at 6.3% for the third consecutive month as annual rents rose from £11,886 in February to £12,041 in March. John Heron, director at Paragon Mortgages, said: `The backdrop for buy-to-let remains positive across the country. Potential residential buyers are reluctant to buy in the current market or are unable to secure a mortgage, and this is fuelling extra demand for rented accommodation.` Mon, 12 May 2008 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1024Uk House Prices Tipped To Increasehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1025House prices in the UK could go up by nearly a third during the next three years, industry analysts have predicted. According to the Centre for Economics and Business Research (CEBR), property values in Britain should halt their decline in 2009. The organisation believes this will be followed by growth in the market, which will see prices rise by about 30 per cent by 2011. This, it stated, is likely to be fuelled by problems in the construction sector, as current economic problems have led to fewer houses being built. As a result, the limited supply could drive up the cost of existing properties. Richard Snook, economist at the CEBR, commented: "With the fundamentals of the housing market still relatively tight, the credit crunch might already have sown the seeds of the next house price boom." This comes after the National Housing Federation predicted that 2013, a typical home in England should cost about £274,700. Wed, 06 Aug 2008 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1025Government Package Boosts Affordable Housing.http://www.twmproperty.co.uk/newsdetails.aspx?ID=1026The Government has decided that it will make available immediately some £400 million in grant aid to allow both social landlords and local councils to provide affordable housing. This initiative, which involves bringing forward committed expenditure, is part of a £1bn package of measures announced by ministers in response to the credit crunch and worsening conditions in the housing market. The funding is expected to deliver up to 5,500 new social homes over the next 18 months, over and above existing assumed levels of activity. The Government has also signalled that it plans to work with Regional Development Agencies and the soon-to-be-established Homes and Communities Agency to provide more financial help for key housing regeneration schemes in deprived areas which are currently slowing down or stalling. Ministers have made it clear that it will only intervene on projects that will deliver "significant regeneration benefits". In a statement Communities and Local Government stressed that it would be focusing "on those schemes that are critical to the wider regeneration of an area, with significant multiplier effects, where delivery is time critical, and where there is a demand for the finished product". Housing and planning minister Caroline Flint said the measures would support families facing difficulties "whilst ensuring we maintain our focus on delivering more affordable homes over the long term". Communities Secretary Hazel Blears said: "By bringing forward our investment in social housing, we are both getting more decent, affordable housing ready for people to live in sooner, and helping the house building industry weather tough times." Roger Milne 04 September 2008 Fri, 05 Sep 2008 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1026Permitted Development Overviewhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1027Permitted development is development that can be undertaken without the need for a planning application to be submitted to the local planning authority. The Government wants to give as much freedom as possible for people to extend their homes, such as building extensions and loft conversions, particularly given current pressures in the housing market. A public consultation in 2007 looked at ways of reducing bureaucracy for householders seeking to improve their homes while protecting the interests of neighbours, the wider community and the environment. The objectives of the proposed changes are: clarity, simplicity and consistency to make the need for specific planning permission proportionate to the impact of the development to keep the number of planning applications to a minimum to ensure the legislation is and can remain relevant to new technologies and changing lifestyles. While the overall aim is to relax the planning regime, the review proposals would also introduce a need for planning applications for householder developments with potential adverse impacts, which are currently allowed. The current rules on permitted development are commonly based on determining the volume of additions or developments. This is often difficult for householders to work out and can still result in unwelcome development. The proposals outlined in this guide would create a national legislative framework based on impacts but importantly the Government is also keen to ensure that local planning authorities (LPAs) have flexibility to amend permitted development rights locally where it is appropriate for their area. It is very important to check with your LPA whether permitted development rights for your property have been varied or waived before starting any work. The Government intends to bring forward legislation to make these changes on 1 October 2008. Fri, 05 Sep 2008 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1027New Regulations Simplifying Householder Developmenthttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1028The Government has published the Parliamentary legislation which simplifies the householder development regime. The revised planning regulations, due to come into force next month (October), are expected to significantly reduce the number of planning applications handled by local authorities as well saving homeowners money because they will no longer be liable for planning fees. Under these reforms the majority of homeowners will no longer need to get planning permission when extending their houses. This should mean 80,000 fewer planning applications annually. The new rules will now allow both loft conversions and rear extensions. Non overbearing loft conversions will enjoy automatic permission. Rear extensions will no longer have a cap on volume. Local authorities will be able to introduce local variations by using Local Development Orders to allow bigger extensions or Article 4 Directions to restrict development where necessary. Ministers have stressed that the new rules strike a balance between allowing homeowners to make improvements and limiting the size of extensions so neighbours and neighbourhoods are protected from obtrusive development. Planning minister Caroline Flint said: "The new rules will cut out planning permissions for about 80,000 households a year and crucially saving as much as £1,000 in some cases – a real difference to already stretched family finances making home improvements an increasingly attractive option." Thu, 11 Sep 2008 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1028Housing Targets Will Not Be Scrappedhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1029Housing and planning minister Caroline Flint has insisted that the Government will not scrap its ambitious housing targets. Her comments, made at the Labour Party Conference in Manchester, came as a housing expert warned that the current credit crunch was undermining the target of up to three million new homes by 2020. National Housing Federation chief executive David Orr warned that the 2020 target could be missed by up to nine years without further Government intervention in the housing market. Orr argued that without radical action, only just over half the target is likely to be built by 2020. He calculated that on the present showing some 1.6m homes could be built by the end of the next decade. However, he said housing associations could more than double their present housing rate, with help from the Government, to make the target more feasible. Orr argued: "With the global credit crunch worsening and conditions getting tougher for all house builders, it is time to recognise that the very commendable 2020 target is now almost impossible." Flint, though, stressed that the original 2020 target remains in place. She told the party conference: "Sceptics ask me to scrap our target of 240,000 new homes a year – three million more homes by 2020. They want us to admit defeat. We won’t give up that easily. Labour will build the homes Britain needs." Read the National Housing Federation news release. Roger Milne Fri, 26 Sep 2008 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1029Clampdown On Sale And Rent Backhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1030The sale and rent back sector needs statutory regulation with better protection for consumers, says an Office of Fair Trading study published on Wednesday. The sector has been highly controversial, with individuals and companies buying up distressed properties at under the market price and allowing the former owners to stay on as tenants. But critics say that they have no security of tenure and that many homeowners facing mounting debt and the possibility of repossession virtually give their properties away. The OFT report says that some consumers enter into sale and rent back transactions when it is not their best option, and many sale and rent back operators mislead them. `This includes telling people they will be able to stay in their home for years, when in reality the tenancy may only be guaranteed for six to 12 months,` the report observes. The OFT also criticises operators for hiking rents and evicting tenants, and is concerned that former homeowners may become homeless if their new landlord defaults on the mortgage. The OFT is calling for the Financial Services Authority to regulate the sector. John Fingleton, OFT chief executive, said: `Recommending statutory regulation is not something we do lightly or often. However, in this case we consider it necessary to put a stop to the unacceptable behaviour of some sale and rent back operators and to ensure consumers are better protected.` Thu, 16 Oct 2008 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1030Bank Base Rates Cut Today By 1.5%http://www.twmproperty.co.uk/newsdetails.aspx?ID=1031Bank Base Rates Cut Today by 1.5% There’s no doubt that any cut in Bank Base Rates is good news but is a 1.5% cut enough to help investors and landlords. Before the announcement by the Bank of England John Cridland, deputy director general of the CBI, said `The recession into 2009 will be both longer and deeper than expected` as he called for a big cut in interest rates. Yesterday in Parliament the Prime Minister said `We want the banks and building societies to pass on the interest rate cuts to their mortgage holders`. Given that the Government now has substantial share holdings in so many major banks perhaps they should be putting more pressure on them to pass on the rate cuts and lower borrowing rates. Lenders are not currently supportive to investors and Buy-to-Let and with so many major Buy-to-Let lenders disappearing from the market the remaining lenders are taking the opportunity to significantly raise their costs and interest rates. This we think may well continue for the short or medium term. The new Base Rate now stands at 3% the lowest for 50 years, hopefully we will see some of the cut passed on to the mortgage market. Thu, 06 Nov 2008 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1031Experienced Landlords Seeking More Propertieshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1032Experienced landlords seeking more properties The number of novice buy-to-let investors has fallen to its lowest level, but the number of existing landlords applying for further funding has grown. Research by Paragon Mortgages among 200 mortgage brokers found that in the third quarter of this year, more landlords sought extra loans to extend their portfolios. This accounted for 30% of buy-to-let mortgage business, while remortgaging accounted for 55%. First-time landlords accounted for just 10.6% of buy-to-let mortgage business, down from 18.3% the previous year. John Heron, managing director of Paragon Mortgages, said: `The number of first-time landlords entering the market is at its lowest level, and perhaps that is a good thing in the current economic environment. Professional landlords represent the core of the buy-to-let market. They are the investors that base their purchase decisions on proven levels of tenant demand for long-term returns rather than speculative investment for a quick profit.` Fri, 07 Nov 2008 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1032Councils Unlock Their Housing Markethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1033Housing Minister Margaret Beckett announced today that councils will get over a hundred million pounds tomorrow to help maintain the building of the family and first-time buyer homes still desperately needed The 2008-09 Housing and Planning Delivery Grant will provide for the first time additional direct funding top up for councils to ensure that new homes are built where families need them. The Government has already announced a series of measures to alleviate the current challenges in the housing market and support the vital delivery of more homes over the long-term. While many councils already deliver good quality homes quickly it is vital that all continue to be flexible and responsive given the current economic climate. Properly identifying land for homes will help hard working families and give the house building industry greater certainty around development proposals. This new incentive will ensure that councils are able to act now. Those rewarded Councils can decide locally how best to spend this extra funding. Housing Minister Margaret Beckett said: "We are determined to continue to do everything possible to ensure long-term fairness in the housing market all across the country - including providing more affordable homes we still need. "The international credit crunch has created significant challenges for the UK but we have a growing and ageing population and the long term need to provide more homes has not gone away. "The allocation of £101m will go a long way to ensuring councils and builders are ready to take advantage when the upturn in the economy comes." We recently announced a £1billion package of support which will help first time buyers facing difficulties entering the market; support vulnerable households at risk from repossession; and will deliver more affordable homes sooner, whilst also helping the house building industry. A further £410m will be made available over the subsequent two years of the HPDG scheme. Fri, 14 Nov 2008 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1033Lenders In Impossible Situationhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1034Following the recent 1% interest rate cuts The Council of Mortgage Lenders have stated that Lenders are finding it difficult to pass on recent rate cuts and maintain banking stability. The Council of Mortgage Lenders says its members are being caught between conflicting demands as lending volumes bump along the bottom. Director general Michael Coogan said they were in the middle of a tug-of-war. He spoke after revealing there were just 39,900 house purchase loans in October, worth £5.5bn. This was an increase of 14% in volume and 10% in value from September, but an annual decline of 52% in volume and 57% in value. There were 15,400 loans to first-time buyers and 24,500 home mover loans in October, up 15% and 14% respectively from September. There were also 70,000 remortgage loans worth £9.4bn, an increase of 12% in volume and 11% in value from September and a decline of 31% in volume and 28% in value from October 2007. The average loan-to-value and income multiple continued to contract for all homebuyers. First-time buyers typically borrowed 83% of the property’s value and 3.10 times their income, down from 84% and 3.18 in September. Home movers typically borrowed 68% of the property’s value and 2.73 times their income, down from 71% and 2.73 in September. Coogan said: `Lenders are facing conflicting pressures – to recapitalise against possible future losses, service the Government’s preference shareholdings at 12%, pay a premium to access the Bank of England special liquidity scheme, show forbearance to borrowers in arrears, follow base rate moves down to help their existing borrowers, keep savings rates high to support existing savers, and provide competitive rates to new borrowers and savers to maintain economic activity in a recession. `And they are supposed to ensure their long-term financial stability to help the UK economy rebuild itself when we are out of the recession. `Current policy objectives are conflicting and incoherent. The Government needs to decide on its key priority. The tug-of-war, with lenders being pulled in every direction at once, needs to end.` Wed, 10 Dec 2008 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1034The Bank Of England Has Cut Interest Rates To 1.5%.http://www.twmproperty.co.uk/newsdetails.aspx?ID=1035The base rate is now at its lowest level in its 315-year history.The Bank of England see the recent cut as part of its continued efforts to aid an economic recovery. The half percentage point reduction brings interest rates below 2% for the first time since the Bank of England was founded in 1694. Manufacturers` association EEF said the move was "too timid", and that the Bank should have cut rates further. The Bank has now reduced rates four times from October`s 5% level. Explaining its decision, the Bank said the level of contraction in business activity had "increased during the fourth quarter of 2008, and that output is likely to continue to fall sharply during the first part of this year". It added: "Surveys of retailers and reports from the Bank`s regional agents imply that consumer spending has weakened." BBC economics editor Hugh Pym said the Bank was now being more cautious after the sharp cuts in interest rates in November and December. "There is a hint in its statement that it may sit tight for a while to assess the impact of the big reductions over the last couple of months," he said. Most mortgage customers with tracker deals will automatically have the cut in interest rates passed on to them by their bank or building society. Societe Generale economist Brian Hilliard said the pound`s recent sharp fall was likely to have played a part in the Bank`s decision to cut rates by no more than 0.5 percentage points. The Bank`s latest rate reduction comes as the Treasury has denied reports it is planning to inject more money, a policy known as quantitative easing. Tue, 13 Jan 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1035Encouraging Signs Of Improved Seller Activityhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1036`It might be a false dawn, but it feels like a bounce back from an unsustainably low position with, finally, some return of confidence.` According to personal search company OneSearch Direct, there has been a 71% increase in the number of requests for searches – as required for HIPs – in January over December. That would indicate more sellers coming to the market. The NAEA last week reported that its members were seeing more potential buyer activity. Websites have also reported higher traffic. Ronnie Park, managing director of OneSearch Direct, said: `There is certainly reason to be hopeful, with activity improving significantly last week. There is, of course, an element of seasonality associated with these figures; nevertheless we have not seen activity levels as high as this since early last October. `Our statistics indicate a large number of properties coming on to the market. When placed alongside figures released by Rightmove last week, showing a 121% increase in people searching for property, it seems that we’re welcoming back both buyers and sellers to the market. `Our records do indicate that activity is still down by 33% from the same period last year; however this is a marked improvement from the end of 2008, when search requests were 70% below the seasonal norm, with the market falling to unprecedented low levels – never before witnessed in a 30-year history of records. Mon, 26 Jan 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1036Sale And Rent-Back Operators Asked To Explain Their Claimshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1037The OFT has served formal notices on 16 sale and rent-back firms, asking them to substantiate claims they make in their advertisements. Sale and rent-back firms buy homes from individuals at a significant discount, and then rent them back to the previous owners – who may have been struggling with debt and fearing repossession. However, because they then become Assured Shorthold tenants, they have little security of tenure beyond six months. Typical examples of the claims made in advertisements by the 16 unnamed firms include: Customers can choose to stay in their properties after they are sold, by renting them back as tenants for as long as they wish, at a fair market rate; Customers can buy back their properties at an agreed point in the future; Customers will have low rent periods and flexible rental terms. The firms have been given 14 days to reply to these OFT notices. Based on their replies the OFT will make a decision on whether or not to take further action, including prosecution. The OFT has already recommended that the sale and rent-back sector should be regulated by the Financial Services Authority. There are thought to be over 1,000 sale and rent-back firms together with a number of landlords who are active in the sector. It is thought there have been around 50,000 transactions to date. Thu, 29 Jan 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1037The Bank Of England Reduces Interest Rates To A Record Low Of 1% From 1.5%.http://www.twmproperty.co.uk/newsdetails.aspx?ID=1038This marks the fifth interest rate cut since October, as the Bank seeks to encourage more lending. However, there are concerns that savers will be hurt by lower interest rates. And business groups argue that this rate reduction will not be enough to ease the economic crisis, and will not encourage banks to lend. The decision comes after official data showed the UK had entered a recession in December, after two successive quarters of economic contraction. The Bank Rate has now been reduced from 5% in October last year. In a statement, the Bank of England said that the rate cuts, along with government measures to boost the economy, "would provide a considerable stimulus to activity as the year progressed." Responding to Thursday`s cut, John Philpott, chief economist at the Chartered Institute of Personnel and Development said: "The Monetary Policy Committee is right to cut Bank Rate to 1%, even though some question the merit of doing so without greater effort to increase the availability of credit to hard-pressed businesses." But he added: "With conditions in the job market deteriorating rapidly what`s needed now to stem the rise in unemployment is early action to boost the supply of money to our cash-strapped economy." In contrast to the Bank of England the European Central Bank kept eurozone rates on hold at 2% on Thursday. Others business groups welcomed the cut. The Institute of Directors` chief economist Graeme Leach said: "The interest rate transmission mechanism is clearly impaired but it is not yet kaput". Sourced from: BBC online news Thu, 05 Feb 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1038Sale And Rentback To Be Regulatedhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1039The sale and rent-back industry is definitely to be regulated by the Financial Services Authority, with a consultation paper now published. The FSA is suggesting a two-stage approach which suggests that it regards the situation with extreme urgency. A two-stage approach has never been used before by the authority. Under the proposals, an interim regime would be brought in from July, followed by a full policing regime in the second quarter of next year. Until the crackdown starts this summer, consumers are being urged to stay away from sale and rent-back schemes. Sale and rent-back has grown on the back of burgeoning household debt and repossessions, and has attracted negative publicity. Owners who have often failed to sell their properties through estate agents in the slow market, sell quickly and at a large discount, and continue to live in them as tenants: however, they can find that they have no security of tenure, as an Assured Shorthold Tenancy can end after only six months. Currently, tenants of sale and rent-back landlords have no redress – something which the FSA plans to put right. Other proposals are that sale and rent-back firms would have to be run by ‘fit and proper’ people Some sale and rent-back landlords raise rents sharply and there have also been cases of tenants being evicted because the landlord has failed to pay the mortgage. A number of tenants involved in sale and rent-back schemes were sold mortgages before the credit crunch ended the era of lavish lending practices. Yvette Cooper, Chief Secretary to the Treasury, said that the clampdown was crucial with growing numbers of people worried about their ability to keep up their mortgage payments. She said: `Unscrupulous companies must not be allowed to exploit people when they are vulnerable with dodgy deals that end up pushing people out of their home.` Fri, 13 Feb 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1039Registry Warning Over Land Banking Scamshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1040The Land Registry has published a guide warning against land banking investment schemes which are often advertised as offering big returns on investments in land. The Government agency pointed out that many investors have handed over thousands of pounds for land that has little or no chance of being developed. Under these schemes plots of land are offered for sale, often online, and sometimes with the claim that there will be huge returns when planning permission is obtained for housing or other development. But the land is usually in areas protected from development by planning law, stressed the organisation. Those operating land banking schemes often claim erroneously that they have well-known banks, other lending institutions and established developers as their partners in the schemes. Land Registry head of corporate legal services Mike Westcott Rudd said: "Members of the public have been misled about the prospects of obtaining planning permission or that planning permission has already been granted. "Sometimes they are told well-known banks, lenders and established developers are partners in the schemes when this is not the case. "In some extreme cases forged Land Registry letters have been produced to suggest that there is official Land Registry planning approval. However, Land Registry plays no part in the planning process,` he stressed. Roger Milne 12 February 2009 Fri, 13 Feb 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1040Housing And The Uk Economyhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1041As lenders begin passing lower mortgage rates on to borrowers, will the property market turn the corner in 2009, and save the UK economy? The fall in house prices in the UK may still be relatively modest considering the unique economic crisis, but the cost of loans is having a remarkable impact on the affordability of bricks and mortar. And it might get better sooner than some think. The problem over the last year has not just been the relative instability of the market. It’s been the inability of buyers to get loans. That could finally change over the coming months following pressure from the Government. With four reductions of interest rates in as many months by the Bank of England, the cost of borrowing, at 1.5 per cent, is at the lowest level since the central bank was founded more than 300 years ago. Analysts predict zero rates are increasingly likely. More important than the benchmark rate is the fact that the banks are finally bowing to pressure to pass on the savings to borrowers. Three big lenders have promised to match the Bank of England`s rate cut. Former caution from the banks was perhaps understandable. Figures released in the Bank of England’s quarterly report for October to December 2008 showed a rise in default rates over the last three months. The report also suggested that lenders expected a further increase in defaults by March 2009. Fears over more bad debtors forced many lenders into reducing the availability of secured credit to households. The Government`s attempts to ease the burden on homeowners will help those in the worst difficulty, while the low cost of interest rates will ensure that any emergency interest-only payments are negligible. The UK Government’s action to date, although not implemented as fast as it could have been, is finally reinforcing the long-term aim: stabilising the economy around high levels of home ownership. Since then governments around the world have looked to implement a two-part plan, modelled on the rescue package that helped solve Japan’s economic crash during the 1990s: 1 – low interest rates; 2 – increased liquidity. But while interest rate reductions have been welcomed, they are useless unless the loans are made widely available. As demonstrated in America, there are limits to how far rates can come down. You can’t go lower than zero. Part two of the plan involves printing more money, an option being considered by the UK Government. The Chancellor, Alistair Darling, played down suggestions it could happen, but did not deny it was under consideration for the future. Quantitative easing: Known as `quantitative easing`, the Japanese government most famously used this as a tactic to solve the financial crisis in the early 1990s. Quantitative easing is a tool of monetary policy – it doesn’t necessarily mean `printing` more money but it does mean increasing or releasing the supply of money. According to Reuters, quantitative easing is when: `Central banks flood the banking system with masses of money, more than is needed to keep official interest rates at zero or a low rate, to shore up financial systems and promote lending. They usually do this by buying up large quantities of assets from banks.` The Financial Services Authority recommended in December 2008 a proportion of banks’ assets should be in the form of `highly liquid` government bonds. These proposals will have far-reaching implications for the banks and their efforts to generate riskier, but larger profits, outside the traditional mortgage sectors. The banks will be restricted by the enforced switching of more than £200bn worth of assets into bonds. The Bank of England’s quarterly survey commented that the shrinking availability of secured credit for households was `associated with a larger than expected decline in loan approval rates as lenders lowered maximum loan-to-value ratios and tightened credit scoring criteria`. The short-term fix: As long as the building industry remains in the doldrums, the short-term fix may be the mortgage market. But new cash could also be the start of something bigger. What is certain is that while the hunger among existing homeowners to trade up may have temporarily diminished, first-time buyers are keener than ever to get onto the property ladder if affordable mortgages are made available. Could the credit crunch be about to play itself out on the back of unprecedented government intervention and zero-rated cash? It will partly depend on how much more public cash Government decides to pour into the banking system. The prospects may be better than some think for property investors in 2009. Liquidity and zero interest rates might just save the housing market’s decline, and with it the UK economy. The Bank of England stated in its quarterly survey that lenders predict a decrease in demand for credit for house purchase, remortgaging and other purposes over the next three months. Thu, 19 Feb 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1041New £500bn Bail-Out Packagehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1042The Government has announced a new rescue package aimed at kick-starting the housing market and the economy. Yesterday`s announcement that the Government intends to use Northern Rock to pump £14billion of mortgage lending into the UK market could kick start the mortgage market. The intention is to encourage lenders to start lending again. Alistair Darling confirmed that Northern Rock would be offering mortgages up to 90% which is of huge importance to first time buyers. It has been calculated that this £14billion will fund around 46,000 average mortgages. This initiative is likely to push other lenders to offer competitive deals as they will not want to be left behind. The hope is that this will generate increased activity in the mortgage market. In itself this will not help Buy-to-Let Landlords as none of this money is aimed at Buy-to-Let, but it is probable that lenders will eventually begin to look to other ways to generate income and so, in time, lenders will return to Buy-to-Let. It is probable that if residential lending returns to some normality then lenders will turn their attentions to commercial and Buy-to-Let lending but it is highly unlikely that we will ever see a return to the situation of just 18 months ago when there was around 3,000 Buy-to-Let mortgages available. Investors and landlords who wish to buy properties should be aware that the prospect of homeowners returning to the market is likely to reduce the amount of properties available for Buy-to-Let. At this moment there is a golden opportunity to secure bargains on both new and second hand homes. Tue, 24 Feb 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1042Ministers Urged To Build Out Of The Recessionhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1043Parliament has urged the Government to retain its long-term house building targets but increase the proportion which will be new social rented housing. That was one of the conclusions of a report on housing and the credit crunch produced by the Commons select committee which monitors the work of the Department of Communities and Local Government (CLG). The report from the all-party committee voiced strong support for moves by the Homes and Communities Agency (HCA) to encourage public sector bodies to make land available for the development of new homes. Committee chair Dr Phyllis Starkey said: "The credit crunch has not reduced the number of households needing new housing, nor does it affect the need to address years of undersupply." Publication of the report came as a group of housing organisations, unions and local authority bodies lined up to make the case for Government investment in new homes including the building of some 100,000 social rented dwellings over the next two years. According to the 2020 Group, chaired by Kate Barker, the PM`s influential former housing adviser, a big drive for new social rented homes could save up to 30,000 jobs in the construction industry. Ms Baker said: "Support for housing today offers excellent value in terms of sustaining economic activity, and reduces the risk of a very severe loss of capacity in the housing and related industries. There is real concern that the present fall in house building is sowing the seeds of the next boom." The 2020 Group consists of the Local Government Association, the National Housing Federation, housing charity Shelter and the TUC. A Communities and Local Government spokesman said: "We are committed to major increases in the supply of affordable and social housing to meet the needs of families on waiting lists. "Along with an £8bn programme to deliver more affordable housing, we have put in place a range of support to keep up the delivery of homes and support the house building industry in the current difficult climate. "This includes buying up thousands of unsold homes from developers to use as social housing, bringing forward £550m of investment to provide more social housing sooner and help protect jobs in industry, and taking action to make it easier for councils to build more homes. We are constantly looking at what more we can do." Roger Milne Mon, 02 Mar 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1043Uk Interest Rates Now At 0.5%http://www.twmproperty.co.uk/newsdetails.aspx?ID=1044The Bank of England (BOE) has yesterday cut interest rates to 0.5%, yet another record low. The Bank said it would also expand the amount of money in the system by £75bn - a policy called quantitative easing - in an attempt to boost bank lending. Bank Governor Mervyn King said "I don`t know how long it will take, much depends on the situation in the rest of the world but if countries work together, these measures will I believe eventually work." Quantitative Easing Quantitative easing is the process of increasing the amount of money in circulation in an attempt to revive the economy but not as sometimes referred to as the process of printing money. The Bank will not expand the money supply by printing new banknotes. The (BOE) will try to increase the money supply by buying up assets - such as government securities (gilts) and corporate bonds. Chancellor Alistair Darling said that increasing the supply of money was "absolutely essential" in order for the UK to recover from the recession. The BOE has will initially add £75bn , but the chancellor has given permission to extend this to up to £150bn. Hopefully, if the amount of money in the system is boosted commercial banks will find it easier to lend. Fri, 13 Mar 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1044Housing Projections Increasehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1045Housing projections increase by quarter of a million a year The number of households in England is anticipated to grow to 27.8 million in 2031, an increase of 6.3 million (29 per cent) over the 2006 estimate, according to the latest household projections released by the UK Statistics Authority. This implies an extra 252,000 households per year. These latest figures are based on the 2006-based population projections and replace the 2004-based household projections released in February 2008 Population growth is the main driver of household growth, accounting for nearly three-quarters of the increase in households between 2006 and 2031. The figures have indicated that one-person households are projected to increase by 163,000 per year, equating to two-thirds of the increase in households. By 2031, 32 per cent of households will be headed by those aged 65 or over, up from 26 per cent in 2006. Also highlighted by the projections are the following: by 2031, 18 per cent of the total population of England is projected to live alone, compared with 13 per cent in 2006 South East regions has the largest absolute increase in households of 39,000 per year from 2006 to 2031, a 28 per cent rise from the 2006 level North East regions shows the smallest growth in households, at 8,300 per year from 2006 to 2031, or a 19 per cent rise from the 2006 level. The Campaign to Protect Rural England warned that the new projections could lead to higher targets for new homes than needed. However, the executive chairman of the Home Builders Federation, Stewart Baseley, insisted that the figures underlined the need "to get builders building again". A Communities and Local Government spokesman said: "Despite the current difficulties, the long-term demand for housing is not going to go away with an ageing and growing population. That is why we are continuing to maintain our focus on delivering more affordable homes, backed up with £8bn investment." Fri, 13 Mar 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1045Planning Applications Downhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1046The number of planning applications received by district level planning authorities in England fell by some 26 per cent during the last quarter of 2008 when compared with the same quarter in the year before, according to the latest national statistics released under the auspices of the UK Statistics Authority. These cover information on planning applications received and decided including decisions on applications for residential developments (dwellings) and enforcement activities. They are provided at national, regional and local authority level. Key points include: The number of planning applications received by district level planning authorities decreased by 26 per cent when compared with the December 2007 quarter District level planning authorities saw a decrease of 22 per cent in the number of applications decided (granted or refused) when compared with the same quarter a year ago The percentage of major applications determined within the 13-week target remained unchanged when compared with the same quarter last year Decisions on planning applications for residential developments (dwellings) decreased by 25 per cent in the December quarter 2008 Authorities that undertake county level planning activity determined 361 applications; a decrease of seven per cent when compared with the same quarter a year ago. The proportion of applications granted increased marginally by one percentage point to 93 per cent compared with 92 per cent a year ago. Rodger Milne Fri, 03 Apr 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1046Planning Consent Extension Move Consideredhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1047Communities and Local Government has confirmed it will consult later this summer on measures to reinstate the five-year consent period for planning permissions. Developers and the CBI have been lobbying hard for the return of the five-year permission, which was cut to three years as a result of the Planning and Compulsory Purchase Act 2004. They argue that the move will help companies hit by the economic downturn. Secondary legislation could be used to make the change. Planning consultancy DPP partner Mark Dodds said: "The Government is beginning to realise that it will stifle recovery within the building and construction sector by burdening it with additional costs, red tape and lengthy timescales if it doesn`t allow for the extension of planning permission to be increased back to five years." He added that the measures would allow for a faster recovery, creating more jobs and investment far sooner than if the legislation wasn`t changed. A DCLG spokesman said: "We are exploring options to extend the length of permissions that have been granted, and hope to consult on this in the early summer." Roger Milne Fri, 01 May 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1047Government Plan To Licence All Landlordshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1048According to an article published in The Times newspaper , all private landlords would have to be registered before letting residential property under government plans to curb abuses in the growing rental market, Easy access to buy-to-let mortgages over the past decade has meant that the number of private landlords has risen to about one million in England and Wales, the Times states that ministers are worried that a growing number of unscrupulous landlords are exploiting tenants. Anyone letting a residential property would have to pay about £50 to register with a national body. This would include developers, buy-to-let investors and the growing ranks of `accidental landlords` who cannot sell their homes and have been forced to let them out instead. Registered landlords would have to comply with certain standards and those who fail to carry out repairs or who intimidate tenants could be struck off. If that happened, all their tenants would have to move out, although this would not happen overnight, Whitehall sources suggested. The reforms are to be outlined in a Green Paper within ten days. The Government intends for the system to be operated with a `light touch` to improve standards and root out rogue landlords, but the bureaucracy could drive out small buy-to-let investors. Simon Gordon, of the National Landlords Association, said: `We can see the thinking behind this but we need to see the details and be reassured that this is not simply a mechanism for tougher regulations.` In Scotland, private landlords are already required to register to let properties. The scheme was brought in after a series of scandals about multiple occupancy. In the first year only 15 per cent of landlords registered, but tougher legislation has since been introduced. Landlords who fail to register can face criminal proceedings and have a notice served on their properties stating that tenants do not have to pay rent. Although details of how the scheme would work in England and Wales are still being negotiated, one option is that each landlord would be given a licence number that would appear on all documents related to the letting. This could make it easier for the Inland Revenue to identify tax evaders. The administrative costs are expected to be covered by the licence fee. The system would be monitored by an independent body to adjudicate complaints made by tenants. If these complaints were upheld the landlord could lose his or her letting licence. Under one option being considered, the Government might set up a `social letting agent` to place affected tenants Tue, 05 May 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1048Regeneration Policy Gets A Makeoverhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1049Communities and Local Government secretary Hazel Blears has set out a new framework for regeneration policy which will target communities most in need. The minister announced the Government`s latest thinking in a wide-ranging speech to the British Urban Regeneration Association.This included clarification that regeneration will involve "reversing economic, social and physical decline in areas where market forces will not do this without support from Government". The Secretary of State said that regeneration must target support for those communities most in need and facing "the most severe poverty, deprivation or sustained unemployment". I think of the regeneration of Manchester, with iconic buildings such as the Beetham Tower as summing up a new sense of confidence, Birmingham with the Bullring, or Leeds with Clarence Dock.I also think of places outside the centre, the suburbs and estates, which have begun to change for the better. I`ve seen that change when I`ve visited places like the social enterprise called Shine at Harehills, Leeds, or the Bunny Hill Primary Care Centre in Washington, Tyne and Wear.So though we face tough times, we are starting from a position of strength. And though money is in less ready supply, town halls, development agencies, regeneration firms and social enterprises are rich in the expertise and experience of the dedicated men and women who have helped us come so far. The transformation of run-down city centres and estates is one of the most remarkable success stories of the past ten years. CLG has published a report which makes it clear that the department wants regional strategies and associated delivery plans to identify and map priority places for regeneration.In the case of London, the department has recognised that the London Plan has already identified broad areas for regeneration and the main locations for growth and investment opportunity. Now ministers want London’s spatial strategy to set out which areas should be prioritised for regeneration and how these will be determined.Elsewhere, it wants to see the Homes and Communities Agency working with local government and regional partners (including the Regional Development Agencies) to deliver a "tailored package" of regeneration investment for communities across England that responds to both local and national priorities. Hazel Blears said: "We are clear that the aim of regeneration – reversing physical decline – is now more challenging, but more important than ever."But in an economic downturn, that has left the sector struggling, the public expects us to tighten up and target our efforts firmly on people as well as places which means employment and the economy." The Government has confirmed it expects £6.5bn investment in regeneration over the next two years. The minister stressed that success would be judged on three measures: improving economic performance, creating the right conditions for business growth and by creating places "where people want to live". Fri, 15 May 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1049More Needed To Stimulate Lendinghttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1050Specialist buy-to-let lender Paragon has called on the Government to do more to stimulate new lending. Paragon, classed as a non-bank lender, has closed its books to new business for over a year, although it is still dealing with existing clients who want to refinance their portfolios. John Heron, director of mortgages, said: `Our landlord customers continue to experience tenant demand at record levels, and these customers are also benefiting from a low interest rate environment. `Demand for buy-to-let investment is robust, but investors’ ability to grow their portfolios is restricted by a lack of available finance across the buy-to-let mortgage market. Prior to the credit crunch, non-deposit taking lenders played a major role in the buy-to-let market, but the closure of the wholesale funding markets has inhibited their ability to conduct new business. `According to independent research, available loan products have reduced by 95% during the past two years. `Whilst Government support schemes have encouraged banks and building societies to resume lending to businesses and consumers, non-deposit taking lenders have been excluded and have received no Government support. It’s important that the Government recognises the importance of specialist lenders in the mortgage market and provides the support needed to aid their return to new lending. `The Government has acknowledged the importance of the private rented sector and has said more needs to be done to encourage good existing landlords to grow their businesses, but the individuals and lenders that have stimulated the growth of the market so successfully over the past decade are being ignored.` Wed, 20 May 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1050House Prices Risehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1051House prices rise, says Nationwide House prices rose by 1.2% in May, says the Nationwide report out today. It has brought the annual rate of decline down from 15% to 11.3%. The lender says that low levels of supply explain the price rise. The average house price is now £154,016, up from £151,861 in April. Fri, 29 May 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1051Banks Expect House Price Rise Over Next 12 Monthshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1052Property prices are expected to rise by an average of 1.4% over the next year, according to the latest Building Societies Association tracker survey. It found that cautious optimism has returned to the housing market. Previous results showed that respondents predicted a 6.1% fall in prices in the March survey and a 7.1% annual fall in June 2008. However, 61% of respondents cited job security as a major barrier to house purchase – the same proportion as in the March survey. Paul Broadhead, head of mortgage policy at the BSA, said: `People clearly recognise that with both property prices and mortgage rates having fallen, there are potential bargains to be found, meaning that now is a good time to buy. `However, for many, concerns over job security mean that they are unlikely to actually go ahead and buy. They will need to see confidence in the jobs market return before they make their move in the property market.` Mon, 22 Jun 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1052Planning Applications Down 30 Per Centhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1053The number of planning applications received by district planning authorities in England was some 30 per cent lower in the March quarter of 2009 than a year ago, according to latest figures compiled under the auspices of the UK Statistics Authority. These statistics showed that district level planning authorities also saw a decrease of 29 per cent in the number of applications decided (granted or refused) when compared with the same quarter 12 months ago. Other headline figures indicated that decisions on planning applications for residential developments (dwellings) decreased by 36 per cent in the March quarter of 2009 compared with the same quarter in 2008. Decisions on major residential developments (10 or more dwellings) fell by 46 per cent over the same period. The percentage of major applications determined within the 13-week target was 71 per cent compared with 72 per cent in the same quarter a year earlier. However, planning authorities that undertake county level planning activity determined 393 applications: an increase of 15 per cent when compared with the same quarter a year ago. All regions, including National Park Authorities, saw a decrease in the number of planning applications received when compared with a year ago. The largest decrease was in the East of England (down by 33 per cent) while the lowest decrease was in London, the West Midlands and the North West which all recorded a 28 per cent fall in applications. Mon, 06 Jul 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1053Sale-And Rent-Back Regs Starthttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1054The financial Services Authority’s interim regime for sale-and rent back schemes has come into force. It requires firms working in the market to apply for interim authorisation by August 1st. The regime aims to protect homeowners from suffering serious financial loss or, in some cases, their home. FSA regulated firms wishing to undertake sale- and - rent back business need to apply for an interim variation of permission. Undertaking the business without permission is a criminal offence. The interim regime lasts until June 30 2010, when the full regime will start. Sun, 19 Jul 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1054House Prices Up For 3rd Month In Julyhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1055LONDON (Reuters) - House prices rose for a third month running in July, the Nationwide Building Society said on Thursday, providing further evidence that property prices may have stabilised despite low turnover. The mortgage lender said house prices rose 1.3 percent this month, the fourth increase in five months. That took the annual rate of decline to 6.2 percent, its smallest drop in more than a year. Martin Gahbauer, Nationwide`s chief economist, said tight supply, pent-up demand and historically low interest rates had been enough to produce a bounce in prices despite the worst recession in decades. "There is now a reasonable chance prices could end the year slightly higher than where they started," he added. "Only a few months ago, such an outcome would have appeared unthinkable." Even if prices remain unchanged for the rest of the year, the annual rate will continue to improve due to the sharp fall in prices at the end of last year. The three-month on three-month rate of change, a less volatile measure, rose by 2.6 percent, its highest reading since February 2007. Nevertheless, the building society cautioned that the pick-up in prices may not be sustained. "If prices continue to increase at the rate of the last three months, they will soon rise to levels that would be noticeably out of line with earnings, rents and other fundamental determinants of housing valuations," said Gahbauer. A shortage of credit helped push house prices down by almost a fifth last year but all the main house price surveys are now pointing towards a stabilisation in prices at least. Bank of England figures on Wednesday showed mortgage approvals rose to a 14-month high in June though total consumer lending rose by its smallest amount on record. Thu, 30 Jul 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1055Rics Revises Forecasthttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1056The Royal Institute Of Chartered Surveys current view of UK Housing market: Caution still the watchword. RICS no longer expect house prices to fall by 10-15% this year. Instead, it now looks likely that the average house price in 2009 Q4 will be slightly higher than in 2008 Q4. However there is still a danger of prices slipping back again in 2010. Activity is still very weak by historical standards. Mortgage approvals look likely to edge up to around 55,000 per month but that would still leave transaction levels well below the long-run average. Housing supply as a long-term problem has been exacerbated by the recession – housing completions in England could come in at around 75,000 this year. The housing market seems to have stabilised over the last few months but it’s too early to forecast smooth sailing ahead. A significant shift in sentiment has been observed, with increasing buyer traffic and improving mortgage approvals. However, there is little chance of a quick return to the boom times as credit conditions remain tight, transaction levels are still at historically low levels and the employment picture is set to deteriorate further. In view of that, it now seems an appropriate time to consider the significant factors underlying housing market activity and to discuss the outlook for the rest of this year and 2010. Fri, 07 Aug 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1056More Homes Neededhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1057More houses needed, says Government adviser. Up to five per cent more new homes will need be built annually than previously thought, according to revised advice to ministers on housing supply. Regionally the biggest increase – at 11 per cent – would be in Yorkshire and Humber, new guidance from the National Housing and Planning Advice Unit (NHPAU) has suggested. Overall up to 290,500 new homes will need to be built in England each year until 2031, it has assessed. That is the date when most regional plans currently under review will end. This analysis, contained in the unit`s latest report, has concluded that declining affordability is having increasingly severe impacts. Professor Stephen Nickell, chairman of the unit, has told housing and planning minister John Healey that "the recession will have little impact on the number of homes that we need to build over the next 20 years". He said: "There are likely to be increasingly serious wider economic and social consequences if we do not manage to bring the supply and demand for housing back towards balance and start tackling the backlog of unmet demand." Countryside campaigners have claimed the new figures are "unrealistic and unsustainable". That`s the view of the Campaign to Protect Rural England (CPRE) which fears urban sprawl will result if all the housing is built. Senior planner at the CPRE, Kate Gordon, said: "We acknowledge the need for more homes but at around three times present construction rates these figures are hopelessly unachievable." She claimed that local councils would be faced with no choice but to allocate greenfield land for housing development to meet the new targets. Rodger Milne. Fri, 07 Aug 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1057Sellers Hips Price Warninghttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1058Property sellers are being told to shop around for their HIPs by consumer group Which? and not necessarily buy through an estate agent. After doing its own shopping around, Which? Money magazine says that HIPs from estate agents can cost almost 50% more than those bought direct. Which? Money found considerable gaps between the cheapest and most expensive HIPs on the market, with some people paying almost £300 over the odds. Researchers found that the most expensive HIP ¬– from Halifax Estate Agents – for a three-bedroom freehold semi cost £413 and the cheapest – from Fridays Property Lawyers – was just £189. For a two-bedroom leasehold flat, the most expensive HIP – from Spicerhaart – was £516, compared with the cheapest at £292. The average cost of a HIP provided by the estate agents questioned was £368, including VAT, for the three-bedroom home and £395 for the flat, compared with an average of £254 and £283 respectively when bought direct. Although buying direct from providers was cheaper, the magazine still found differences in price of up to £191.James Daley, editor of Which? Money, said that consumers should `not be fooled` into thinking they have to buy HIPs from agents. The findings are part of a Which? Money report on how to cut the cost of selling your home. Wed, 19 Aug 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1058Clamp Down On Land-Banking Scamshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1059The Government`s clampdown on land-banking "scams" has resulted in three more companies being forced into liquidation and the director of another company being banned for seven years from being a director. Three companies involved in the continued mis-selling of land in Scotland have been ordered into liquidation in the High Court following a Government investigation. The wind-up orders involve Chapeltown Associates Limited, Highland Properties Estate Agency Limited and Osprey Highlands Estate Agents Limited. Registrar Jaques condemned some of the companies` practices as "unsatisfactory" and "unacceptable". An investigation by the Insolvency Service`s Companies Investigation Branch (CIB) found that land being offered for sale at Loch Shin in Scotland had initially been marketed to the public by a company called IDC Land Ltd. The scheme involved selling plots to investors on the basis that planning permission was very likely to be granted resulting in a substantial increase in value. The court heard there was no likelihood of planning permission being granted. Nonetheless, IDC Land Ltd managed to persuade eight clients to part with more than £220,000 for land which it did not even own. IDC was wound up in the public interest in May 2008. However, Highland Properties Estate Agency Limited and Osprey Highlands Estate Agents Limited continued to market the land, which had been acquired by Chapeltown Associates Ltd, but again there was no likelihood of planning permission being granted to add value to the plots of land that were marketed. Registrar Jaques ordered all three companies into liquidation in the public interest. Commenting on the case, the head of investigations and enforcement at the Insolvency Service, Robert Burns, said: "Some companies exploit land-banking as a means to induce investors to buy land on the promise of high returns which may never materialise. We will continue to crack down on companies and individuals which deliberately mislead the public in this way. "I`d encourage anyone approached by companies offering plots of land on the promise of future planning permission to be on their guard." In a separate move, Timothy Wren, of Ormskirk, Lancashire, the former managing director of Land Banking UK, has been disqualified as a director for seven years following an investigation by the CIB. The company was ordered into liquidation in February 2008 after raising more than £3.5m from the sale of more than 300 plots of land on five sites at Grassmoor, Chesterfield; Knowlsey, Merseyside; Marsh Lane, Nantwich; Willaston, Nantwich; and Lower Tean, Uttoxeter. Fri, 21 Aug 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1059Buy To Let Fundinghttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1060The Buy to Let market has recently become the big issue. The consumer site moneysupermarket.com released some figures last week showing how demand for funding in this sector is outstripping demand. The general consensus in the media seems to be that many Buy to Let investors are now reaching the end of their fixed periods (remember the run on Northern Rock began almost exactly 2 years ago) and while interest rates are down, re-finance is hard to come by. Recent figures from Trigold Crystal show that the number of Buy to Let products are down 20% in the last month alone. It is notable, however, that BTL product are still firmly the preserve of the intermediary market with 291 products available to intermediaries and only 56 directly. The big question is what the role of Buy to Let has had in fuelling property prices over the past few years? Are investors victims of the banks overinvesting in debt or are they now experiencing the repercussions of naive investments. TWM has access to a range of Buy to Let products and may be able to help investor clients who are having difficulty obtaining funding for purchase or refinancing. Mon, 07 Sep 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1060Lending Worsens For Buy-To-Lethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1061Specialist lender Paragon, which closed its books to new business more than a year ago, said that 54% of landlords tried to get a buy-to-let mortgage in the three months to the end of August, either for new purchase or remortgage. Over half of all professional landlords tried to get a buy-to-let mortgage in the last three months – and nearly all reported difficulties.Nine out of ten said that getting finance was harder than in the previous three months. Paragaon said there were 196 buy-to-let products available at the end of this August (a 94.4% reduction on August 2007), compared with 218 in May and that buy-to-let product availability has continued to fall. This compares with 1,329 prime residential mortgage products available in August (an 86.1% reduction on August 2007 numbers), against 1,266 in May. John Heron, Paragon Mortgages’ managing director, said: `Product availability has picked up slightly in the mainstream mortgage market, but worsened for the buy-to-let market. We know that there is demand from investors to purchase new property, particularly with returns from savings products being so low, but they are being frustrated by a lack of mortgage supply. TWM has access to a range of Buy to Let products and may be able assist clients who are having difficulty obtaining funding for purchase or refinance.Wed, 23 Sep 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1061House Prices Edging Upwardshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1062House prices crept up by 0.2% in September, according to Hometrack. It means prices are now just 5.6% below what they were this time a year ago. The research firm also reports a widespread lack of supply throughout London and the south-east. Knight Frank reports a similar picture for prime London house prices, which it says rose 1.3% in September. It is the sixth consecutive monthly growth, although prices are still 8.9% lower than 12 months ago. Liam Bailey, head of research, said London prices are rebounding because of tight supply, low interest rates and strong overseas demand. Tue, 29 Sep 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1062Calls To Release More Landhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1063Ministers have been urged to accelerate the release of public land and to provide greater support for local authority land deals where councils offer land at low cost or in lieu of a share of development. That call has come from David Pretty, formerly chief executive of Barratt Developments, and Paul Hackett, director of think-tank the Smith Institute. They have produced a new discussion paper on the housing crisis for the think-tank and Pricewaterhouse Coopers which has been published by the Town and Country Planning Association. Pretty, co-author of the report, said: "Our analysis shows that in England we could be approaching a one million housing shortfall by the end of 2010. With production at its lowest levels in 80 years, the gap between housing supply and demand will, this year alone, be around 150,000 homes, equivalent to the size of Nottingham." TCPA chief executive Gideon Amos OBE said: "This report highlights that we must continue to plan and to provide the homes our society needs – but we must do so in a sustainable way. In short we need quantity and quality. If we don’t the housing supply crisis, already urgent, will get worse. The alternative of allowing housing provision to sink to a new all-time low could be storing up even more difficult problems ahead." The report highlighted the need for more land release and better management of land supply to increase thesupply and variety of new homes and to reduce the percentage of apartments in future output. The authors argued that while it was important to protect Green Belt and maintain brownfield targets, there would be a need for the release of more greenfield sites – especially in high-demand areas. They also stressed that it was important to improve the planning applications process, extend the period for existing planning consents and avoid any major planning reforms which would create uncertainty and disrupt supply. In addition, the report also called for the Government to resource a major campaign to raise awareness about the need for major new settlements and more new housing generally. Fri, 02 Oct 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1063First Time Buyer Get Boosthttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1064HSBC has today announced it will make £500 million available to help home buyers who have a 10% deposit... According to HSBC`s head of mortgages, Martijn van der Heijden, the property market slump appears to be over with house prices recovering. This has led to strong demand, according to van der Heijden, and as a result the lender will allow people to borrow up to 90% of their property`s value. He comments: "We committed £15 billion to mortgage lending in 2009 - double our 2007 lending - and £1 billion of this was made available exclusively to home buyers with deposits of just 10%. "Demand has been very strong and we have reached this target, so we are now committing another £500 million to this vital segment of the market," adds Mr van der Heijden. This will no doubt be good news for first-time buyers, who are crucial to the recovery of the housing market. However, many have been unable to get onto the property ladder without a hefty deposit. Research shows that first-time buyers need an average deposit of 25% in order to secure a mortgage. Earlier this month, HSBC launched a low rate mortgage deal at only 1.99% but said it was only available to borrowers with a 40% deposit. Article from: www.themovechannel.com Fri, 02 Oct 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1064Valuations: Science Or Scam?http://www.twmproperty.co.uk/newsdetails.aspx?ID=1065Complaints of undervaluing are on the rise and the reason could be rather unpalatable for a home value obsessed nation. Could it be that surveyors are guided towards undervaluing property so that the lender is (a) protected from further falls in the value of properties they lend on and (b) quids in because the borrower has to pay a higher rate for his mortgage? The Times reports that down valuations can lock buyers out of the best rates – and that is to the benefit of the lender. Halifax’s best five-year fixed rate for its borrowers with only 10 per cent equity is 6.19 per cent. HSBC charges just 4.95 per cent. The difference could take £12,400 off the cost of a £200,000 mortgage over five years. Simon Lord, 49, an estate agent, and his wife Katherine, 44, from Bath, came to the end of their mortgage with Halifax in July. The bank gave an automatic valuation, based on its house price index, which gave the Lords less than 25 per cent equity. Unhappy with the figure, they paid about £1,000 for Halifax’s own surveyor, Colleys, to visit their property for a physical valuation. This turned out to be 35.6 per cent higher, at more than £1m, giving them the 60 per cent equity required for the top deals. `We would have had to acquiesce to a far less favourable mortgage if we’d accepted Halifax’s initial valuation,` said Mr Lord. The NAEA ran a survey of their members on the ‘Problem of Down Valuations’ and found that 69 per cent of respondents had experienced problems with lenders valuations after a sale is agreed and 65 per cent had lost sales as a result of down valuation by lenders. 64 per cent also said that owners seeking remortgage had had problems with their property being down valued. Source: Property DrumSat, 10 Oct 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1065Rates To Remain At 0.5 Per Cent Throughout 2010.http://www.twmproperty.co.uk/newsdetails.aspx?ID=1066It has been suggested that the Bank of England interest rates will remain at 0.5 per cent throughout 2010. The MPC brought interest rates down to their current record low level in March this year and they have been frozen at 0.5 per cent in the six months since. Benjamin Williamson, economist at the Centre for Economic and Business Research consultancy, said that there are a number of reasons why his organisation thinks the Bank`s monetary policy committee (MPC) will keep the rate unchanged. "[It is] partly to counteract the expected sharp fiscal contraction, but also because the recovery does remain weak, so they have got to keep borrowing costs down," he explained. He emphasised his point by claiming that it is "extremely unlikely" that the UK will encounter any movement in the cost of borrowing throughout the 12-month period. Homeowners on some tracker mortgages have been able to benefit from reduced monthly home loan payments as a result of this monetary policy. Source; HouseladderTue, 13 Oct 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1066Property Investors Swing Back Into Actionhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1067Investor confidence in the UK and overseas property markets has risen significantly, according to research conducted by the Property Investor Show, with investors saying it has increased by 43% in the last three months. A third of respondents attribute the change in attitude to positive media reports and 20% to the greater availability of different finance options. While bank finance remains an issue, 17% of investors are still able to secure bank loans to fund investment, having enough liquid assets to cover the current LTV ratio, while 32% have access to savings and are able to use the equity from existing assets. Nick Clark, managing director of the Property Investor Show, said: `The boost in confidence and renewed hunger in UK and overseas property has been signalled by reports that UK property prices have stabilised and the first signs of permanent job rises being reported. `There has also been a strong shift in the market, with savvy UK investors beginning to explore overseas opportunities as they search for sound investments with better returns than the other poor performing investment vehicles such as bank savings and the stock market.` The Property Investor Show and OPP Live runs from October 22-24 at London ExCeL. Source; EATWed, 14 Oct 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1067Calls For Stamp Duty Extentionhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1068Calls are growing for the Government to extend its Stamp Duty holiday beyond December 31, and also to increase the threshold where the tax becomes payable. Michael O’Flynn, director of FindaProperty, said the Stamp Duty break had cost the Chancellor just £200m in the year since it has been introduced – or 0.1% of the Government’s bail-out for banks. The Stamp Duty holiday has meant that properties up to £175,000 have been exempt. But O’Flynn says it should be raised to £250,000. He said this would make 61% of all properties currently on the market exempt from Stamp Duty, based on homes available on the FindaProperty website. He said: `The Stamp Duty holiday has already benefited many first-time buyers and this has contributed to the upturn in the housing market, with prices stable or rising for the sixth consecutive month. Extending the holiday beyond December 31 and making it applicable to all properties under £250,000 would provide an important impetus to the fragile housing market and a welcome shot in the arm for the economy. `The Government must have the courage of their convictions and stand by this initiative. The housing market recovery is still in its early stages and the removal of this tax relief now could negate any headway that has been made over the past few months.` Meanwhile, the NAEA and ARLA have called for wholesale reform of Stamp Duty. They claim that 91% of their members want the current holiday extended and that Stamp Duty itself is archaic. Peter Bolton King, chief executive of both bodies, said: `The time has come to reassess Britain’s most unpopular tax.` The NAEA and ARLA are also emphasising the geographical inequalities of Stamp Duty, with London home buyers being hardest hit. Fri, 16 Oct 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1068Fsa To Curb Self-Certification Mortgageshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1069The Financial Services Authority plans to curb self-certification mortgages, which because they don`t require proof of income were abused during the property boom, The FSA plans to introduce a rule compelling lenders to insist on proof of income as part of its mortgage review. The City watchdog has also proposed new rules to govern mortgage lending, which would put the onus on lenders to ensure that loans are affordable. Here is how trade bodies and other organisations reacted. Michael Coogan, director general of the Council of Mortgage Lenders: Mr Coogan warned that tighter rules could hit groups such as contract workers and people trying to set up as self-employed following redundancy. He told BBC Radio 4`s Today programme: "There are different segments of the population that could be excluded by these measures and it is a bit of a blunt tool. "We support the need for affordability checks. But I think what we saw before the credit crunch was that there was too much money about, because of global markets funding the UK, and insufficient regulation. Now we have got insufficient money and too much regulation. "There is a risk that if the assumption is that if something goes wrong it is the lender`s fault, then the lenders will either put the price up even more or not lend at all." He added: "What we have got is a market which has lent affordably in the past and will continue to do so, but we have got a market with less money. That means fewer people will be able to get a mortgage and those mortgages are going to be considerably more expensive than they were in 2007 or before." In a statement, he added: "We agree with the FSA that regulation in itself cannot resolve the problems of the recent market. However, we also agree that clearly delineated responsibilities, which remove regulatory ambivalence, will help lenders, intermediaries and consumers to know where they stand, and to accept the consequences of their actions. "As always with regulatory change, the devil may be in the detail. But we welcome the consultative approach, and look forward to working with the FSA to ensure that the objective of regulatory fairness between lenders, intermediaries and consumers is achieved in practice." Angela Knight, chief executive of the British Bankers` Association: Ms Knight told BBC Radio 4`s Today programme: "Everybody wants an environment in which the lending is responsible." But she warned that it was important to take account of the "fairly hard cases", such as the self-employed and first-time buyers, and "get the balance right, so that people who deserve a mortgage because their income warrants it don`t find themselves ruled out of obtaining it by new rule changes". Source: The Times Mon, 19 Oct 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1069Investors Have Opted To Buy More Propertyhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1070Investors have opted to buy more property over the last year, new research from the Association of Residential Letting Agents (Arla) has revealed. The study indicated that the average residential landlord investor has boosted their property portfolio from 6.3 to seven homes in less than 12 months. According to the survey, buy-to-let investment has almost doubled in the last five years, with the average number of properties per landlord increasing from four in 2004 to its current level. Ian Potter, operations manager at Arla, said: "Low interest rates and proportionately higher rental yields are making the buy-to-let market attractive again to experienced investors." The 0.5 per cent Bank of England interest rates Mr Potter refers to are expected to be kept at the same level for the rest of the year and most of 2010. Indeed, many economists are predicting that the cost of borrowing will stay at this record low throughout next year. Tue, 27 Oct 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1070Buy-To- Let To Be Regulated?http://www.twmproperty.co.uk/newsdetails.aspx?ID=1071The Financial Services Authority (FSA) outlined in their recent proposals that buy-to-let may be brought within the FSA’s regulatory regime. They claim that this would strengthen oversight arrangements and potentially "protecting consumers making investment decisions on property". This has led to some concerns from bodies such as the National Landlords Association (NLA) who have stressed that this may mean increased costs of borrowing for landlords. The focus should really to get the lenders lending, and this could be hampering the housing recovery. Commercial Director, Tan Karim reiterates the claim by commenting, `The Buy to Let Business – along with the fellow brokerages pioneering buy-to-let mortgages - has seen this proposal coming for the past 2 years and have been implementing our infrastructure accordingly. Regulation will filter out the rogue brokers and applicants in the market thus having a positive impact to our industry. However, the fact of the matter is, the market is looking for additional lenders promote competition and lower rates.` Thu, 05 Nov 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1071Property Supply Slackens In Rental Markethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1072Rental supply has plunged by 20% in the last quarter, according to the UK’s largest lettings chain, as the lettings market undergoes a sharp correction in the balance of supply and demand. Over the last two years there has been a surfeit of properties and falling rents, but the picture appears to be changing rapidly. Countrywide Residential Lettings (CRL) surveyed more than 200 of its offices, and in the three months to October it found that the number of new tenant inquiries increased by 11% whilst the number of new rental properties fell. The findings reveal that the south-east region has the highest proportion of new tenant inquiries, with 3.3 tenants vying for every new property that enters the market. John Hards, co-managing director of CRL, said: `The rental market is now in the midst of a correction as the excess supply of properties brought on by the downturn in the sales market is disappearing and rental stock is coming under increased demand from the growing number of tenants. `The rental market is at crossroads: the economy is fragile and unemployment is still rising. However, we are already seeing the first signs of rent increases due to strong tenant demand, and this looks set to continue.` London agent WA Ellis has also reported fewer rental properties available compared with demand, whilst nationally, Your Move is also looking for more rental stock. Source; Estate Agents TodayMon, 16 Nov 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1072New Chartered Accountancy Service.http://www.twmproperty.co.uk/newsdetails.aspx?ID=1073Chartered accountancy firm Harts LLP working in partnership on property transactions with TWM Property Consultants. Su Rai of Harts LLP is heading up the new partnership, Rai has spent most of her career with KPMG and currently holds the post of deputy president of Manchester Chartered Accountants. Harts LLP can offer a full range of services tailored to the requirements of the property sector and provides seamless solutions for businesses and individuals including accounting, investment and taxation advice. Deriving the maximum potential from a property transaction requires robust professional advice and strong working relationships – every property transaction is unique so every client is assessed taking account of their objectives and the opportunities available. Rai will be working in partnership with our clients giving objective, independent and informed advice on how to implement solutions to increase their profitability and value. Each property transaction is assessed from its inception through to its disposal. This involves identifying the best structure for the acquisition through to maximising the profit on disposal and mitigating the ensuing tax liability. Tue, 17 Nov 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1073Average Fix Lowest Since Junehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1074The average two year fixed rate has fallen to 4.99%, the first time it has been below 5.00% since 23 June 2009. For borrowers looking to fix their repayments for a longer period there is not such good news. The average three year fixed rate mortgage has increased over the last few months standing at 5.58% today. While the margin on the average five year fixed rate mortgage has increased to the widest on record. Michelle Slade, spokesperson for Moneyfacts.co.uk, said: "Borrowers are finally starting to see more positive news coming out of the mortgage market. Falling rates on popular two year fixed rate mortgages, occurring against a backdrop of lenders raising the maximum LTV on their most competitive deals suggests that competition is increasing". Lenders have become accustomed to the post banking collapse world and appear to be finally relaxing their credit criteria while remaining within a regulated frame work. Swap rates have been falling over the last few weeks, but mortgage rates on medium term deals are yet to follow suit. Borrowers will be hoping the easing of credit criteria continues and that lenders will start to reduce the large margin for risk they have been taking over the last year. While it may still be too early to say the worst is over, the signs are all there. Tue, 24 Nov 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1074Students Boost Rentshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1075Overseas students will help fuel UK rental prices by 5% between 2010 and 2011, according to Knight Frank. Growth will be seen in the ensuite market, with rent for high-end studios, particularly those in London, expected to remain static without any falls during the period. The agency’s Student Property Review 2009, which came out November 23, reveals that Universities and Colleges Admissions Service statistics reveal a 16.6% increase in foreign applicants last month, with those from the Republic of Ireland up by 43% and those from China up 27%. UCAS has experienced a 12% increase in overall applications for places for the 2010/11 academic year, with the total number of people in higher education up from 1.8 million in 1996/7 to almost 2.4 million in 2009/10. According to the review, rental growth in the student accommodation sector has consequently grown 5% per annum over the last six years, compared with the 0.6% seen in the commercial property sector. A lack of supply of student accommodation is also fuelling student rental prices. The majority of key university towns have reported nearly 100% occupancy in halls last year, meaning that just 26% of London’s higher education students are able to access halls, with only 3% having access to the private sector halls. Regional rental growth has experienced rises of as much as 13% in Bristol, Leeds and Liverpool, 12% rises in Nottingham, 11% in Cardiff and Leicester, 10% in Edinburgh and London, Birmingham and 9% in Manchester and 7% in Newcastle. Tim Goddard, head of student property for Knight Frank, says: `The underlying market fundamentals for the student property sector are positive, with supply restricted and strong demand underpinning rental growth. `Given the lack of finance currently available for development and the constrained pipeline, rents are likely to continue to rise for the foreseeable future. There is strong demand for high quality, income producing assets and it is anticipated this will continue with increased appetite from investors for direct let stock.` source: The Negotiator Tue, 01 Dec 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1075November `Bounce` For Valuationshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1076Connells report that their survey and valuation arm did 40% more valuations in October and November this year than for October, November and December combined in 2008. The uplift was due to a November ‘bounce’. The group says that in November, valuation activity was up by over 50% over the same month last year. Ross Bowen, managing director for Connells Survey & Valuation, said: `Despite fears over the effects of rising unemployment and an uncertain economic backdrop, we’ve seen the housing market stage a modest recovery. `The upsurge in the number of valuations conducted is another sign of the distance the market has travelled since 2008. If this recovery in activity levels continues in the same vein, we should see a far more positive start to the new year.` Valuation activity rose across the board when compared with this time a year ago – including rises for buy-to-let investors and first-time buyers. Mon, 07 Dec 2009 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1076House Prices Soared In The Noughtieshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1077House prices crept up with a 0.4% rise in December – the eighth consecutive monthly gain, according to the Nationwide. Overall, says Nationwide, house prices rose 5.9% last year, and 117% over the decade. However, house prices are still 12.2% off their peak for the decade, in October 2007. Source: EAT.Mon, 04 Jan 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1077Stock Levels Hit Their Lowesthttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1078The lowest stock levels this century, and almost certainly for far longer, are reported by Rightmove this morning. Whilst asking prices for new properties put on the market this month have nudged up 0.4% on last month, stock levels have dwindled alarmingly. Rightmove says that the number of available properties per estate agency branch is now 63. They estimate the number of properties currently available for sale is the lowest since they started monitoring the housing market in 2000.` Whilst a 15% increase on this time last year, the new instructions figure is still way down on the 89,000 average of the same period in 2006 and 2007. According to Rightmove, there are also drastically fewer new-build properties coming to market, with many developments mothballed or cancelled in late 2008 and early 2009, and developers now either unwilling or unable to rebuild their pipelines. According to commercial director Miles Shipside "Low stock levels are normally associated with house price booms, and prices would have fallen considerably further but for the unique combination of circumstances that has kept stock off the market". `Buyers have little choice in popular areas, and at present the limited supply of sellers is being outstripped by buyer demand. However, we predict there will be more forced selling later in the year.` Rightmove’s asking prices – now at a UK average of £222,261 – are still massively disconnected from the mortgage-agreed prices reported by Halifax and Nationwide. The lenders are currently reporting UK average house prices of £169,042 and £162,103 respectively. Source: RTAMon, 18 Jan 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1078Landlord Upbeat On Buy-To-Lethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1079Landlords are returning to the buy- to-let market,according to Capital Home Loans Mortgages. The specialist lender`s first quarterly survey of 359 landlords found that 81 per cent were positive about the future of the buy-to-let sector. When asked whether they planned to buy or sell some of their investment properties in the near future, 38 per cent said they intended to buy.13 per cent said they would sell and the remainder were content to sit tight. Bob Young, managing director of CHL Mortgages said: "Our first quarterly survey of CHL landlords customers seems to show growing confidence in the buy- to- let sector and an overwhelming feeling that the market pain we have all felt over the last couple of years is starting to subside"Mon, 18 Jan 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1079Loans On The Up In Ukhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1080Figures from moneysupermarket.com have revealed a rise in the number of mortgage products available but numbers are still way off the levels seen prior to the credit crunch in August 2007... According to the price comparison website, last week there were 2,516 mortgage products on offer in the market, breaking through the 2,500 mark for the first time since May 2009. This was the third consecutive month that mortgage products increased but compared to August 2007 - prior to the collapse of Northern Rock, there were more than 30,000 mortgage products on the market. Hannah-Mercedes Skenfield, mortgages channel manager at moneysupermarket.com, comments: "This is good news for buyers, as passing the 2,500 barrier does suggest that those looking for a mortgage are finding more and more choice, and where there is choice, there is competition." However,Ms Skenfield points out that this is still a small fraction of the products available in August 2007 so a recovery is still a long way off. Finally, the Council of Mortgage Lenders recently reported that first-time buyers are still having to put down a hefty deposit of 25% in order to secure a mortgage. Fri, 22 Jan 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1080More Landlords Turn To Deposit Protectionhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1081Over 200 new landlords are registering each day with the Deposit Protection Service, which is the only custodial deposit protection scheme accredited by the Government. The DPS says it is now holding more than 500,000 tenants’ deposits, equating to over £370m. Kevin Firth, director of the DPS, said the figures show increasing compliance with the law. But a second interpretation could be that the DPS is becoming a more popular way of complying. As a string of recent events have shown, landlords and tenants are not necessarily protected through insurance-backed tenancy deposit schemes, since the money can still be misappropriated. Firth said: `As the only scheme to physically hold on to a deposit, our service is the most independent and secure because a tenant’s deposit under our protection remains safe even if the landlord or letting agent goes into administration.` The buck stops with landlords: One of the problems for landlords with the existing tenancy deposit legislation is what happens if their agent goes bust, there is no sign of the tenant’s deposit money – and the tenant wishes to extend the tenancy. In these circumstances, the deposit will not be released back to the tenant – it appears – by any of the schemes. Our research shows this is happening and landlords want to know what their responsibility is. Unfortunately, the landlord has little alternative but to find the money for the deposit themselves, and to pay this into the custodial scheme, the DPS. Failure to do so means that the landlord has not protected the deposit, as the law requires, and this opens the landlord to forfeiting the deposit itself plus a penalty of three times the deposit that was originally paid by the tenant. Tue, 26 Jan 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1081Uk Is Officially Out Of Recessionhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1082The 18-month downturn is officially over with the ONS reporting that the UK economy grew by 0.1% in the final quarter of 2009. The UK recession began in the second quarter of 2008 and since then the economy has contracted by 6%. Many experts had been expecting us to exit the recession in the third quarter of 2009, but the quarter showed a 0.2% contraction. The UK is one of the last of the European economies to exit the recession. However, today’s figures are just an estimate and could be revised upwards or downwards once all the information has been collected. Tue, 26 Jan 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1082House Prices Make Strong Start To 2010http://www.twmproperty.co.uk/newsdetails.aspx?ID=1083House prices rose by 1.2% in January and are up 8.6% year-on-year according to the latest Nationwide house price index. Commenting on the figures Martin Gahbauer, Nationwide`s chief economist, said: `House prices strengthened their upward momentum at the start of 2010, increasing by a seasonally adjusted 1.2% month-on-month in January. The 3 month on 3 month rate of change – usually a smoother indicator of the near term trend – dipped slightly from 2.3% in December to 2.1% in January, but this primarily reflects the smaller price increases recorded in November and December. `At £163,481, the average price of a typical UK property cost 8.6% more than a year earlier in January, up from 5.9% in December. Unless there is a fall in property values in February, annual house price inflation is likely to move into double-digit territory next month for the first time since May 2007.` Fri, 29 Jan 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1083Regime Change For Hmoshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1084Housing and planning minister John Healey has announced new local powers to control the spread of high concentrations of shared rented homes - houses in multiple occupation (HMOs) - a particular cause for concern in some university towns and cities. This move forms part of Government measures designed to tackle pockets of unsafe and substandard accommodation run by bad landlords. Following consultation, Communities and Local Government has decided to amend the Town and Country Planning (Use Classes) order 1987 as amended to provide for a specific definition of an HMO. Planning permission will then be required, where a material change of use has occurred, for properties changing use from C3 (dwelling house) to the new use class. At the same time as making this change the department now plans to amend the Town and Country Planning (General Permitted Development) Order 1995 to provide that movement between the new HMO Use Class back to the C3 class (dwelling house) will not require planning permission. The new regime should come into force in April, ministers have confirmed. The department has acknowledged the change will lead to an inevitable rise in planning applications but said it believed there was a real need to intervene in this specific problem. CLG had previously said that the consultation responses and research work have indicated that good practice alone cannot solve the problems encountered in a number of communities. John Healey, said: `I am giving councils more local powers to crack down on the worst landlords and stop the spread of high concentrations of shared homes where it causes problems for other residents or changes the character of a neighbourhood. `Private landlords play a big part in meeting the housing needs of millions so I want to raise the standards and stamp out the worst landlords that drag down the reputation of the rest. Councils know their communities and are best placed to help tenants facing landlords who rent unsafe or substandard accommodation and take little responsibility for the problems caused for neighbours. `Everyone deserves a decent and safe place to live and these measures aim to improve standards of the private rented sector at a time when more people look to rent as their first option in the housing market.` Many towns and cities across the country have suffered the effects of a concentration of HMOs. Market, coastal and university towns have reported problems due to large student populations and HMOs which resulted in shops, businesses and pubs closing down during vacation time, creating `ghost neighbourhoods`. Sat, 30 Jan 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1084Sale-And-Rent-Back To Be Scaled Backhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1085The sale-and-rent-back sector is to be sharply scaled back with a new clampdown starting this summer. Words like ‘fast sale’, ‘mortgage rescue’ and ‘cash quickly’ will be banned from all advertising. A 14-day cooling-off period will be introduced, and cold calling and leaflet dropping will both be banned. Home-owners who choose to stay in their properties, but as tenants, will have to be given minimum tenure of five years. The new clampdown is the second stage of the FSA’s moves to regulate what has for many been a totally unsavoury industry, with sale-and-rent back firms typically buying a cash-strapped home-owner`s property for 60% of its value, and then evicting them after a few months. Last summer, sale-and-rent-back firms had to register with the FSA. Anyone who wants to grass on an unauthorised individual or firm can call 0300 500 5000. Mon, 01 Feb 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1085Ami Supports Stamp Duty Proposalshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1086The Association of Mortgage Intermediaries (AMI) has voiced its support for Conservative plans to raise the current stamp duty threshold to £250,000. Robert Sinclair, AMI Director, said: `The current Stamp Duty regime distorts the market and prevents first time buyers from getting a foot on the property ladder. `The Stamp Duty holiday last year was a welcome piece of common sense from Government. And the Conservative plans to raise the Stamp Duty threshold to £250,000 would provide a welcome boost to many first-time-buyers and also provide assistance to first time movers in many parts of the country. This would do much to support the housing market. `However, what we urgently need is a more fundamental review of this antiquated tax Wed, 03 Feb 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1086Consultation On The Rental Markethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1087The Government has published a consultation document on the role the private rented sector should play in supporting the economic recovery and increasing supply in the housing market. The Private Rented Sector is a vital and growing part of the UK housing market, representing around 14% of all households in England, or around 3 million homes. The Government is keen to ensure that the sector plays its part in meeting the UK’s housing needs. Commenting on the publication of the consultation document, the exchequer secretary to the Treasury, Sarah McCarthy-Fry said: `The Government has provided significant support for the housing sector through the downturn, with around half of all new builds in the last 12 months having benefited from government support. `But the recent housing market downturn has had a significant impact on housing supply, and as our economy recovers we need to ensure that we look to all areas of the housing sector to meet these pressures. `The Private Rented Sector has been the most affordable, flexible and responsive segment of the market. We need to build on this to ensure it can play its part in supporting the recovery and meeting these urgent needs. `The consultation we are launching today will ensure that we fully understand the contribution the PRS can make, and identify any substantive barriers to investment.` This Treasury consultation is complemented by the Communities and Local Government policy statement `The Private Rented Sector: Professionalism and Quality: consultation responses and next steps` also published. Taken together, steps to raise quality and identify any barriers to investment should reinforce each other and create a better private rented sector that can become the tenure of choice for a wider range of people. Thu, 04 Feb 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1087Government Moots Change To Stamp Dutyhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1088Change to regulations boost private rented sector by reducing duty on bulk purchases of flats. The government is to consider whether or not to change the regulations around stamp duty for bulk purchases of flats in a bid to encourage the creation of a professional private rented sector. The move is one of a number of possibilities raised by a Treasury consultation, published yesterday, on how to change regulation to encourage the construction of new homes for private rent. Institutional investors have argued for a number of years that regulations around stamp duty discourage their involvement in the sector, by charging stamp duty on the total value of a bulk purchase, rather than individually on the value of each flat. This means that an investor buying a large number of flats worth £150,000 would pay stamp duty at the full 4% rate, rather than the 1% rate normally attributed to homes at that price. Alan Collett, consultant for Allsop and chair of the British Property Federation`s residential committee, welcomed the news. He said: `It is illogical that large investors pay more for the same transactions as individual investors. This is a disincentive as it reduces the total return to investors and restricts the amount of new money going into housing.` In addition the consultation raises the possibility of using Real Estate Investment Trusts (REITS) to act as a vehicle for the investing in rented housing.The changes would be designed to enable institutions to raise finance to fund the construction of new homes specifically for rent. Andrew Cunningham, chief executive of listed residential property owner Grainger plc, said the consultation maybe too late to influence policy before the general election. He said: `It is welcome to have the government look into stamp duty and UK REIT changes that may increase investment in the sector - changes we`ve been calling for, for some time. We can only hope that this gesture will survive after the election and the next government will take action quickly.` Source; INEA Sat, 06 Feb 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1088Buy-To-Let Market More Robusthttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1089The buy-to-let market is more robust than originally thought, according to the National Landlords Association (NLA). Commenting on the publication of the latest buy-to-let arrears data from the Council of Mortgage Lenders (CML), showing that fewer landlords are experiencing financial difficulty, Simon Gordon, head of communications, NLA, said: "The latest figures from the Council of Mortgage Lenders demonstrate the resilience of the market in what have been difficult times for landlords. Fewer landlords are struggling to meet mortgage payments, with arrears down 37% year on year. The number of properties taken into possession in the fourth quarter has also fallen by 25%, as many landlords benefit from reduced interest rates. "It is encouraging to see the total number of buy-to-let repossessions remain a small percentage of the market, at 0.46% of the total book, similar to the annual rate for the residential mortgage market. "Clearly, the figures suggest the buy-to-let market is far more robust than originally feared. The government should take note of this when considering whether regulation is really necessary. Rather than wasting effort on further legislation they should be encouraging lenders to get credit flowing again." Fri, 12 Feb 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1089More Affordable Homes Neededhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1090The Lib Dems have called for empty homes to be brought back into use to create more affordable housing. Commenting on yesterday’s Council of Mortgage Lenders figures showing the gross mortgage lending declined by 32% in January and is at its lowest monthly total since 2000, Liberal Democrat Shadow Housing Minister, Sarah Teather said: "These figures are further proof that the economy is still extremely fragile. "Despite the Government having a share in some of the country`s banks, it has failed to get them to act in the interests of the consumer. "We urgently need many more affordable homes and the quickest and cheapest way to do this is to bring hundreds of thousand of empty homes back into use. Fri, 19 Feb 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1090The Fixed Rate Mortgage Comes Of Agehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1091Halifax has published research into the fixed rate mortgage, just over 21 years after the launch of the first fix. Halifax helped to introduce a fixed rate culture by launching its first product in November 1988, with other products coming onto the market throughout 1989. By 2009, according to CML figures, 68% of new mortgage lending was on fixed rate products. Before the arrival of the fixed rate mortgage, irrespective of their individual circumstances, borrowers had little or no choice in their mortgage rate. In the late eighties, interest rates rose to 13%, the introduction of a new product revolutionized the market - introducing a level of stability, choice and competition that has become customary for today`s borrowers. The research found: By February 1989, there were 12 fixed rate products from 12 lenders, compared to over 1300 fixed rates from 69 lenders today. Over 1500 fixed rate products were available at the peak of the market in 2007. In 1989 the Bank of England bank rate was at 13%, compared to today`s historic low of 0.50% In the early months of the fixed rate mortgage, terms of two years were the standard option, with just three or five year options occasionally available. As it has become an established product option, terms from 1 to 25 years have been available, and borrowers in today`s market can fix for up to 10 years. The average fixed rate in February 1989 stood at 12.55%. In 2007, when the availability of fixed products was at an all time high, this was at 6.33% - compared to 5.38% in 2010. The highest ever Halifax fixed rate stood at 13.85%, launched in 1990, compared to the lowest ever fixed rate at 1.99% in February 2007. fixed rates have accounted for the majority of new mortgages in each of the past five years, up to 68% in 2009. *Source: Halifax and Moneyfacts Stephen Noakes, mortgages commercial director at Halifax, commented: "In today`s market, borrowers can select their product based on a number of factors - including the term, type and rate. It`s easy for us to take that level of choice for granted, but before the introduction of fixed rates, borrowers simply didn`t have access to the same options. Ever since their introduction 21 years ago, fixed rate mortgages have been fundamental for homeowners looking for certainty and stability in managing their household expenses, and this is an important milestone to mark." Mon, 22 Feb 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1091New 90% Mortgage Launchhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1092Newcastle launches 90 per cent mortgages New mortgage products designed specifically to help people with 10% deposit get onto the housing ladder have been launched by Newcastle Building Society. The new mortgage range has been set up to help people overcome the difficulties they currently face in gaining a mortgage to purchase property and is particularly ideal for first time buyers. The products offer a maximum loan-to-value of 90% and include the options of a two-year tracker at 4.60% or a two-year fixed rate at 5.95%. For these 90% LTV products, the Newcastle allows multiples of up to 3.25 times an individual`s annual salary, or three times the joint salary of a couple. These limits are specifically set to support affordability for the loan. A base rate tracker version is also available at a rate of 4.10% above the Bank of England Base Rate. Steve Urwin, senior sales and marketing executive at Newcastle Building Society said: "Conditions in the mortgage market have been very difficult for sometime, and they have had a particular impact on the first time buyer market, where numbers across the UK have fallen year-on-year by around 4%. "We know, however, there is still the demand throughout the UK from many people that want to buy their first home. With house prices beginning to recover and a lot of homes remaining affordable to many first-time buyers, we have created these new products to give them the opportunity to get onto the property ladder, while encouraging both responsible borrowing and lending practices.` Both moneysupermarket and Defaqto are showing this product in Best Buy tables and there is a limited amount of funding available. Both products are available for purchases only. The deals will be available across the Newcastle`s 36 branches and through its Direct Mortgage Operations Centre. Tue, 23 Feb 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1092Owner Occupiers In Declinehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1093Owner occupiers are in decline, with an increase in the desire to own property in the long term hampered by historically low levels of housing supply. This is according to the CLG`s English Housing Survey, which indicated that the proportion of households choosing to be owner occupiers is continuing to decline but there has been an increase in the proportion of private renters expecting to purchase a house over the medium term. Commenting, Simon Rubinsohn, RICS chief economist, said: "The latest survey provides further evidence that the proportion of households choosing to be owner occupiers is continuing to decline. The peak year for owner occupation was actually back in 2003. Since then, private renting has become an increasingly important tenure with the buy-to-let boom significantly increasing the supply of this type of accommodation. Interestingly while the proportion of private renters looking to buy over the next couple of years has declined according to the report, this is not indicative of a diminishing desire to own property; there has been an increase in the proportion of private renters expecting to purchase a house over the medium term. "However, unless housing supply increases substantially over the next few years, the likelihood is that many of those aspiring to buy a home will continue to find such a move out of their reach. Data released last week showed new housing starts to remain at historically low levels, suggesting that the imbalance between demand and supply is likely to remain a feature of the market in many parts of the country for some time to come. Even if there is some easing in prices later this year as mortgage costs begin to rise, it is unlikely that this process will continue unless the economy were to lurch back into recession, which is not expected." Wed, 24 Feb 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1093Capital Gains Tax Fearshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1094Capital Gains Tax fears prompt investors to sell now. Second-home owners and property investors in London are rushing to sell ahead of expectations of changes to Capital Gains Tax in next month’s Budget. The current flat rate of 18% was introduced in 2008, replacing the variable rate linked to income tax rates and taper relief. However, the tax was not mentioned in the April 2009 Budget or in December’s Pre-Budget Report, despite the fact that changes were announced on most other taxes. There is speculation that as a result, an alteration in the tax is likely to be announced on March 16. If so, it will come on top of the new 50% tax which will hit many City workers. James Hyman, partner for residential sales at Cluttons, said his firm has seen a sudden rush of instructions from landlords and those with pied-a-terres. He said: `The Budget will be more important for the property market than the election.Many are concerned about a possible rise in CGT – particularly investors and those with second homes in the form of city pieds-a-terre who are looking to sell. `While stock in the capital remains historically low, we have noticed a trend that the properties that are coming to the market are from investors wary of a possible CGT hike and cashing in on the current high prices being achieved. Wed, 24 Feb 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1094House Prices Drophttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1095House prices fell by 1.0% month-on-month in February according to the latest Nationwide house price report. However, the figures show that house prices have increased by 9.2% over the past year, bringing the average price for property to £161,320. The figures may be explained by the snowy weather and the expiry of the stamp duty holiday, according to the society, and it is too early to say whether February’s drop is the start of a new trend. Commenting on the figures Martin Gahbauer, Nationwide`s chief economist, said: `The price of a typical UK property fell by a seasonally adjusted 1.0% month-on-month in February, ending a strong run of nine consecutive monthly increases. The relatively smoother three month on three month rate of inflation remained positive at +1.6%, though this is down from +2.0% in January and a peak of +3.7% in September 2009. The annual rate of price inflation still managed to increase from 8.6% to 9.2% year-on-year, as this month’s fall was smaller than the 1.5% m/m decline recorded in February 2009. The average price of a typical property sold in the UK during February was £161,320.` Fri, 26 Feb 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1095New Rics Survey Comes Into Usehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1096The new RICS HomeBuyer Report comes into effect from today, replacing the previous RICS Home Buyer Survey and Valuation. The new product uses colour-coded ‘traffic light’ condition ratings, based on the surveyor’s judgement on the state of repair of most aspects of the property. A green rating indicates no repairs are necessary; amber highlights non-urgent defects that will need attention in the future; and red indicates serious defects needing urgent repair or replacement. The aim of the new survey is to increase use by home buyers. Only 10–15% currently commission a survey. Mon, 01 Mar 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1096Do You Know Your Mortgage Rate?http://www.twmproperty.co.uk/newsdetails.aspx?ID=1097At least three million UK borrowers do not know the rate of interest at which they are currently repaying their mortgage, Research from Post Office Mortgages has revealed, that despite the Bank of England base rate being at an all time low, over a third (35 per cent) of borrowers are currently repaying their mortgage at their lender`s Standard Variable Rate (SVR), possibly because they believe that they are on the lowest monthly repayments on offer. Nearly a third (29 per cent) of these do not know their mortgage rate, and are only assuming that their SVR is the best rate for them. In reality there could be a much lower rate available elsewhere. Furthermore, 49 per cent believe they can overpay but are not taking advantage of this facility at present. Post Office personal lending director Marco Hughes said: "Although it might seem that staying on your current SVR is the easiest thing to do, you are much more vulnerable to interest rate rises. Some providers have increased their SVRs quite significantly even though the Bank of England base rate has not moved and as a result many borrowers are seeing their monthly mortgage repayments increase more quickly than they thought. "If you`re thinking about switching mortgage, now is the best time to do it, before rates rise further. With many SVRs at or above 4% there are already better deals to be had out there. Switching mortgage does not have to be a stressful experience and spending a bit of time searching and comparing deals could save you a significant amount of money in the long term." Why not Let us find the right mortgage for you: Please fill out the online mortgage enquiry form and submit your details to us.We will use the information to provide a mortgage appraisal on your behalf. Wed, 03 Mar 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1097Interest Rates Stay On Holdhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1098Interest rates stay on hold again As predicted, interest rates have been kept on hold at 0.5%. It has been 12 months now since the MPC cut rates to 0.5% The Bank of England’s MPC has also decided against further quantitative easing. Experts expect interest rates to remain at this level until at least the Spring to protect the fragile recovery in the economy. Thu, 04 Mar 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1098£83 Million Pledge For Ftbshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1099Housing Minister John Healey has pledged £83 million to get the building of more than 5,700 new and affordable homes, stalled by the recession, back on track. Low cost homes for sale on sites across every region of the country are getting support so more families can take their first step onto the housing ladder through the Government`s HomeBuy scheme - which has already helped over 130,000 families buy their first home. Crucially this cash will also get struggling housebuilders building homes again, safeguarding over 1,700 jobs. Because Healey has made it a requirement that those receiving funding must provide apprenticeships and opportunities for local workers, today`s cash will give 99 additional young people the chance to learn the building trade. The Minister has already given 141 projects mothballed by the recession cash to get back on track and workers are back on site on many of these. Today’s extra funding means nearly 5,700 homes are now going ahead and 1,700 jobs in construction have been safeguarded. Developers receiving cash today have committed to get workers back on site by this time next year with almost a quarter saying they`ll have workers back on site by the end of the month. Tue, 09 Mar 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1099Supply Outstripping Demandhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1100The balance between supply and demand shifted toward the supply side as the new instructions net balance outpaced buyer interest for the second consecutive month, says RICS latest UK Housing Market survey. New instruction and new buyer enquiries rebounded in February following a weather skewed dip in January with both net balances turning positive. For the second consecutive month the new instructions net balance outpaced the new buyer enquiries net balance - the first sustained shift towards supply for two years. Seven per cent more chartered surveyors reported a rise than fall in new buyer enquiries compared with the previous month up from a negative reading of 20% while a net balance of 15% of surveyors saw a rise in new instructions which compares with a negative balance of 5% in January. Seventeen per cent more chartered surveyors reported a rise than a fall in house prices down from 31% in January. Surveyors in the regions are still reporting house price gains in most areas but the net balances are a little less positive than they were. However, surveyors in the North, Yorkshire and Humberside, Wales and the West Midlands are reporting house price falls. The price expectations net balance also remains in positive territory but the latest reading is the lowest since July 2009. Meanwhile, the closely-watched sales to stock ratio is also beginning to edge lower which is consistent with the housing market becoming a little less tight.Tue, 09 Mar 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1100Affordability At 7-Year Highhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1101Property prices now more affordable than at any time since in 2003, according to property website Zoopla. The research released today reveals that the fall in house prices and mortgage rates over the past couple of years has resulted in UK housing affordability at its highest level since 2003. The average UK income earner can now afford to buy 58% of all homes, up significantly in comparison to the property market peak in 2007 when just 34% of homes were affordable. Over the past 10 years, affordability levels reached their highest point in 2002 at 66% and then fell steadily over the next 5 years. The current levels were last seen in 2003 when the affordability rate was 56%, leaving UK property more affordable now than at any time in the past 7 years according to the Zoopla research. Zoopla has calculated the affordability rate using median incomes and average house prices in each geographic area along with prevailing mortgage rates. It judges a home to be ‘affordable’ if one third of the median income is sufficient to cover mortgage repayments. In 2002 using one third of income to meet mortgage repayments allowed a purchase of £118,934 whereas today, given the current low financing costs and increased incomes, the same proportion of income finances a purchase of £188,423. Across the UK, affordability rates vary greatly by area with the most affordable markets generally in the north and the least affordable in the south, despite the higher income levels. Nicholas Leeming, commercial director of Zoopla.co.uk, commented: `Affordability rates have improved substantially over the past couple of years as a result of lower mortgage rates and falling house prices that have now begun to stabilise. We are at levels of affordability not seen in the UK housing market for almost seven years which makes it a great time to buy, especially if current low interest rates can be locked in by the borrower.` Thu, 11 Mar 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1101Landlords Upbeat Over Rental Sectorhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1102The latest Upad Rental Confidence Index shows that 61% of UK landlords feel more confident about the buy-to-let sector for March 2010, compared to February. This figure is slightly higher than the result for the same poll conducted last month, which stood at 57%. Survey respondents leaving comments stressed the increased positivity with the private rental sector, but continued to highlight issues such as student accommodation and Government funding. Statements included: `There are positive signs lending is returning to the market, which has been the biggest block in the past two years.` `Due to the University plans to build more Halls of Residence accommodation, there will be less demand for private rental accommodation.` `The industry needs to stop taking Government money and start lending sensibly again.` James Davis, founder and CEO of Upad, commented: `For the fourth consecutive month since we launched the Index, landlords have highlighted their growing confidence in the market. `In the months to come, it will be interesting to monitor the lending capacity of the UK’s banks, and the impact this will have on the sector. Overall though, I feel that this month’s survey indicates the market is continuing to go from strength-to-strength.` Sat, 13 Mar 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1102New Help For People In Debthttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1103Lenders and a debt advice provider are to announce additional help to those facing financial difficulties. The Ministry of Justice has been working with the British Bankers’ Association (BBA) and the Consumer Credit Counselling Service (CCCS), with input from Citizens Advice (CitA) to develop a new way to help people who suffer an unexpected ‘income shock’ such as redundancy, reduced hours or illness. This initiative will allow debtors to make minimal token payments until their financial situation has recovered, where this is the best option available to them. Under the new initiatives to be announced today: Banks, building societies and credit card lenders who follow the Lending Code will provide additional protection to people who find themselves in financial difficulties. Under guidance issued by the Lending Standards Board, lenders will consider reducing or freezing interest and charges. Lenders will also accept token payments where appropriate. The CCCS will, after Easter, introduce a new payment arrangement for consumers with at least two unsecured debts, who are unable to meet their debt repayments, allowing them to make token payments of as little as £1 per debt a month - provided they take responsibility for their debts, engage with their creditors, and pay what they can. This will show the customers’ creditors that, although they currently cannot meet their debt repayments, they are keen to repay when they can. The customer can benefit from this scheme for an initial six month period, after which they will hopefully be back on their feet financially and able to resume their debt repayments, or an alternative form of debt remedy may have to be considered. Consumer Minister Kevin Brennan said: `If people in debt genuinely can’t pay for a short period, they should be offered this important relief and the chance to make token payments while they sort out their problems. Lenders recognise that there are sensible alternatives to taking court action, for them as well as for their customers.` The new package of measures by lenders was confirmed in advance of announcements to be made by the Prime Minister today, expected to include fairer rights for credit card users, low-cost access to online credit histories and other reforms designed to make the financial services industry work in the interests of consumers Mon, 15 Mar 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1103Savers Investing Their Money In Buy-To-Lethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1104An increasing number of savers are investing their money in buy-to-let properties amid fears that their pension will be insufficient to fund their retirement, one expert has stated. Keith Churchouse, director of Churchouse Financial Planning, says that many people put their money into what they considered to be safe pension schemes, which have gone on to collapse over the course of the last ten to 15 years. "There are many that are not very happy about that, and so many people have switched to things like buy-to-lets, as an example, where at least they can see bricks and mortar," he states. Mr Churchouse`s comments come in response to recent statistics from the National Association of Pension Funds, which reveal that just 34 per cent of people in Britain are confident that their pensions will provide them with enough cash to fund their lifestyle when they retire. According to Prudential, the average man planning to retire in 2010 will expect to receive an annual pension of £19,593, with women hoping for £12,169 a year. Source; HouseladderTue, 16 Mar 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1104Land Registry Launches Consultationhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1105The Land Registry has launched a consultation paper E-Conveyancing Secondary Legislation - part 3, seeking views on proposals to create electronic transfers complete with electronic signatures and to extend the use of electronic legal charges (a form of mortgage). The new proposals would make it possible, for the first time, to carry out the main conveyancing steps in the sale and purchase of a house electronically instead of using paper documents. The consultation period runs for 14 weeks from 22 March until 25 June 2010. The aim of Land Registry`s e-conveyancing programme is to make conveyancing easier for everyone, with an electronic system that makes buying and selling property less stressful for the public, conveyancing professionals and the other parties involved. Tue, 23 Mar 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1105Potential Ftbs Frozen Out Of Markethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1106ALISTAIR Darling must innovate housing policy in the Budget or freeze out thousands of potential first time buyers (FTBs), the National Association of Estate Agents (NAEA) has warned. In a submission delivered to Downing Street, the NAEA calls on Darling to consider an incentive scheme such as the $8,000 First Time Home Buyer Tax Credit in the United States. The scheme, which is widely credited with stimulating the housing market, has since been extended. FTBs purchasing any kind of home—new or resale—are eligible for the tax credit of up to $8000. The law defines FTB as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. In addition to this the Association also suggested the following steps to boost the housing market: • Make house building a priority • Reform Stamp Duty Land Tax (SDLT) • Suspend Home Information Packs (HIPs) Comenting, Peter Bolton King, chief executive of the National Association of Estate Agents, said: `FTBs are central to a properly functioning housing market so it makes good economic, social and political for Mr Darling to consider a one-off stimulus for FTBs, similar to the incentive scheme in the United States. `Although consumer confidence in the market is slowly being restored, low levels of supply in new housing and a lack of mortgage finance means the market is not moving as fast as it could. `If Mr Darling is really serious about helping first time buyers, he needs to review pointless and expensive schemes such as HIPs and Stamp Duty which are impeding progress at a crucial time of recovery Wed, 24 Mar 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1106Budget: Stamp Duty Decisionhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1107As widely predicted, Alistair Darling has doubled the stamp duty limit for first-time buyers. From Midnight tonight, any first-time buyer buying property up to £250,000 will not have to pay Stamp Duty. First-time buyers – defined as anyone who has not owned a home for three years – are all eligible for the tax credit after their purchase. The move will be funded through an increase in Stamp Duty to 5% on properties over £1 million. Wed, 24 Mar 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1107Hsbc Launches 90% Deal After Stamp Duty Movehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1108HSBC has launched a 90% LTV deal aimed at first-time buyers purchasing properties below the new Stamp Duty limit of £250,000. One of the headline reforms out of yesterday`s Budget announcement was a new starting threshold for Stamp Duty of £250,000 for first-time buyers, doubled from the previous £125,000 limit. The exemption came into effect from midnight and will run this year and next. In response HSBC has cut its fee free lifetime tracker by 0.5% from 4.99% to 4.49% and available up to 90% LTV. The lender has also launched a two-year fixed rate mortgage at 2.99% with a maximum loan size of £250,000, a £999 fee, and a maximum LTV of 70%. Andy Mielczarek, head of retail products at HSBC, says: `Today’s move by the chancellor to help first-time buyers by removing Stamp Duty for all homes of up to £250,000 is welcome news. `Spring is often the time of year when people start looking to buy a new home, so the combination of the Stamp Duty cut and our latest mortgage deals gives first-time buyers a healthy boost towards their goal of joining the housing market.` The products will be available from March 29. Fri, 26 Mar 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1108Government Got It Wrong On Lhahttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1109The National Landlords Association (NLA) has called on the Government to rethink its proposals for reform of LHA. The moves comes in response to today’s publication of the Work and Pensions Select Committee report into Local Housing Allowance (LHA). The NLA agrees with the Committee as it came out strongly against the Government’s proposal to make direct benefit payments conditional on energy efficiency which it said had the potential to do ‘more harm than good’. Further recommendations in the report call on local authorities to be more pro-active in identifying vulnerable tenants, and to provide more advice services and support. Underlying this was the Committee’s emphasis that ‘the onus should not be on the claimant to inform the local authority that they are vulnerable’ Research by the NLA shows that LHA has generated rent arrears across the whole private-rented sector of as much as £220 million since it was rolled out nationally. The Committee has recommended that the Government goes further commission an in-depth study on rent arrears ‘to gain a clearer picture of the scale of the problem’. David Salusbury, chairman, NLA, said: `This report highlights the reality that LHA is not working as well as the Government would like to believe. The NLA’s own survey found on average landlords were owed £4,400. This is public money that neither the taxpayer nor landlords can afford to lose. `If the sector is unconvinced by the Government’s proposals for reform and the committee’s report is critical, then we think Government needs to look carefully at these findings, deal with rent arrears and try not to make matters worse.` Tue, 30 Mar 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1109Transition Of High-Rent Tenancies To Ast`s Confirmedhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1110The Government has now published the Statutory Instrument which will lift the rent threshold for Assured Shorthold Tenancies from £25,000 to £100,000 a year. The Assured Tenancies (Amendment) (England) Order 2010 will come into force on October 1. As its title suggests, it will apply in England only, and not elsewhere in the UK. The transition could produce several problems for agents and landlords. Tenant law specialist David Smith, of PainSmith solicitors, said: `While this is not, as has mistakenly been stated, a retroactive change, it will affect tenancies that are already in place on October 1. Therefore a tenancy that has started before October 1 which is for a rent in excess of £25,000 per annum but for less than £100,000 per annum will, on October 1, automatically convert to an AST. `This will mean that a number of tenancies will, on that date, need to have their tenancy deposits protected and will also fall under the section 8 notice regime for breach of contract and the section 21 notice regime for the termination of the tenancy.` He said the change poses potential problems for deposits taken for tenancies starting before October 1. Under tenancy deposit law, deposits must be registered with a tenancy protection scheme within 14 days of receipt. Since almost all of the deposits in question will have been taken long before this, it could leave the landlord and agent open to a claim for the usual penalty, which is three times the value of the deposit. He also said that where court proceedings have been started for breaches of contractual tenancies, by the time these cases come to fruition, the agreements would have become ASTs. This could mean that the wrong notices had been served. However, if a Section 21 notice were to be served before October 1, it might not be valid. Smith said that these problems would need to be worked out by the courts. Source; EAT Thu, 01 Apr 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1110"light At The End Of The Tunnel"http://www.twmproperty.co.uk/newsdetails.aspx?ID=1111Buy-to-let landlords are now beginning to see the "light at the end of the tunnel" as rent levels start to rise, one expert has suggested. Nigel Lewis, property expert at FindaProperty, says accidental landlords are leaving the market as housing supplies tighten and while rents are still a long way off their pre-credit crunch levels, they are gradually rising. "Strong demand should ensure that returns for serious landlords continue to improve over the course of the year," he states. Mr Lewis` comments come in response to new statistics from the website, which reveal that rents have risen by an average of 0.7 per cent in March, marking the second consecutive month of increases. The standard monthly rent currently stands at £820, which is £16 higher than in January. Mark Garner, managing director of LettingZone recently advised that the buy-to-let market has "never been better" for existing professional landlords, with interest rates low and rental yields rising. Tue, 06 Apr 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1111Bank Of England Interest Rate Decisionhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1112The Bank of England`s Monetary Policy Committee today voted to maintain the official Bank Rate at 0.5%. The Committee also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009. A programme of asset purchases financed by the issuance of central bank reserves was initiated on 5 March 2009. The most recent change in the size of that programme was an increase of £25 billion to a total of £200 billion on 5 November 2009. In line with the Committee`s announcement last September, the timing of the General Election means that the next Monetary Policy Committee meeting will conclude on the morning of Monday 10 May, with the decision announced at 12 noon. Thu, 08 Apr 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1112Uk Facing Severe Housing Shortagehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1113There is not enough rental property to meet consumer demand in the UK - and the situation is worsening, according to ARLA. The Q1 research from the Association of Residential Lettings Agents (ARLA) shows that insufficient supply of good quality property means that the private rented sector (PRS) is struggling to meet demand. With the PRS picking up the slack from the housing market, ARLA believes that the next Government must focus on averting the sector from crisis. "More than two thirds of our agents have seen demand outstrip supply across the country - there simply isn`t enough housing stock coming onto the rental market. The Government`s move to help first-time buyers by raising the Stamp Duty threshold was a step in the right direction. Now we need to see tangible measures to support the PRS," said Ian Potter, operations manager of ARLA. "Investors need to be treated as businesses, with proper incentivisation to invest in and refurbish older properties. This will improve standards, help the environment with improving insulation", and encourage much-needed investment to help get the market back on its feet. Banks need to be told to be more flexible about the provision of finance for the buy-to-let sector which has fuelled the supply of good quality homes, and saved this government from an even greater housing shortage. Without these kinds of measures there is a serious risk that a shortage or rentals will create another form of housing crisis." The research, conducted among UK letting agents and landlords, shows that during Q1 2010, two thirds (59%) of ARLA member agents reported more tenants than properties available. This is a 50% rise on the last quarter (41%) and in Q3 2009 the figure was just 24%. The speed with which tenants are snapping up homes to rent is also telling - properties are vacant for an average period of just 3.6 weeks, which is down from 4.2 weeks at the same point last year. Thu, 15 Apr 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1113House Prices Pass 2007 Peakhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1114Central London house prices have recovered so dramatically, in five boroughs they are now higher than at the property market peak in summer 2007, according to estate agent Marsh & Parsons. Leading the way is the City of Westminster where average house prices are nearly 10% higher than in July 2007 and Kensington & Chelsea where prices have risen by almost 6.5%. House prices in Camden, Hackney and Hammersmith & Fulham have also all surpassed the level reached at the previous zenith nearly three years ago. Commenting, Peter Rollings, managing director of Marsh & Parsons, said: "It`s remarkable that house prices in some central parts of the capital have already passed the high water mark seen in 2007. But the official figures from the Land Registry don’t tell the whole truth in that we believe the falls during the economic downturn may have been steeper than 10% and that prices have rebounded much more strongly in certain prime areas. "Villages such as Battersea and Clapham which are popular with young UK-based families have recovered steeply because property for sale has been in short supply, but that is now changing with more property coming onto the market in the expectation of a VAT rise post election. "As for Pimlico, Chelsea, Knightsbridge, Kensington, Holland Park and Notting Hill – here we have seen the strongest recovery. This is due to cash rich buyers who probably don’t need a mortgage, foreign investment attracted by the weak pound and City workers who have invested in bricks and mortar rather than in low yielding investments such as bonds and ISAs." Peter Rollings adds: "Outer areas of London have fared less well and many are still some way from getting back to 2007 levels. But 15 of these boroughs are within 5% or less of reaching the heights of 2007. This is not a bad thing because the last thing the property market in London needs is another bubble developing. A slow and sure recovery is better than an overheating one Thu, 22 Apr 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1114House Prices Reach Double Digitshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1115House prices increased by 1.0% month-on-month in April and the annual rate of price inflation moves into double digits for first time since June 2007. This is according to the Nationwide’s House Price Index for April, which showed that house prices are 10.0% below the October 2007 peak. Commenting on the figures Martin Gahbauer, Nationwide`s chief economist, said: `The price of a typical UK property rose by a seasonally adjusted 1.0% month-on-month (m/m) in April, leaving house prices 10.5% higher than a year earlier. Over the lifetime of the last Parliament (May 2005 to April 2010), house prices have risen by 6.7%. This compares to a 13.5% increase in the consumer price index, the official target measure of inflation. Thu, 29 Apr 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1115Use Buy-To-Let Tax Breakshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1116Buy-to-let landlords need to ensure they are making the most of their allowable tax breaks. Landlords can offset a wide array of costs incurred through letting property against their income, but many are unaware of the full range of costs they can claim. Good tax planning is key, particularly as buy-to-let landlords are on the tax man`s radar. How you implement, manage and run your tax affairs could have a major impact on your property investments and their financial profitability. This can be an extremely complex area so professional buy-to-let tax guidance will help landlords manage their tax matters. It`s vital that landlords take advantage of the allowances open to them to maximise their return on investment. When landlords take all of the allowable costs into consideration it could generate a significant saving on their tax bill. Landlords shouldn`t be ignorant to savings in the current market. TWM is always on hand to offer professional advice to helps landlords from purchase through to sale and provide valuable information on Income Tax, Annual Income Tax Returns, Limited Companies and Capital Gains Tax, in addition to top tax tips. Tue, 04 May 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1116Base Rate Stays At All Time Lowhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1117The Bank of England`s Monetary Policy Committee (MPC), have announced that the base rate will remain at the historic low of 0.5% that it first reached in March 2009. The decision was taken against the backdrop of the Greek debt crisis and the worries in the financial markets over the prospect of a minority government. In the early hours of this morning European Finance Ministers agreed rescue measures worth up the 500 billion euros to stop the Greek debt crisis from spreading. This, together with the increasing likelihood of an agreement for government between the Conservatives and the Lib Dems, has seen financial markets rebound this morning from the deep losses they suffered last week. At 11.00am the FTSE 100 index was up 250 points, which equates to 4.88%. There are no current plans to increase quantitative easing beyond the £200 billion already announced, the MPC says in it`s release today. Ray Boulger, senior technical manager at John Charcol, said: `The MPC will no doubt have been made aware of the inflation forecasts to be published on Wednesday in the Quarterly Inflation Report, but despite last week’s wholesale price index showing a worrying upward trend there are still enough concerns about the health of global economy, as witnessed by the massive weekend bail out for the Euro, to suggest it is still much too early to start tightening monetary policy. "As the talks between the Conservatives and Liberal Democrats appear to be making good progress the markets seem prepared to wait for the outcome, particularly with the Euro bail out taking centre stage today. Boulger added: `Most of Friday’s initial rise in gilt yields was reversed by the close of play and despite an increase in yields today it is worth noting the yield on German Bunds has increased significantly more than the yield on gilts. "Furthermore, because of the strength of the gilt market in the run up to the election, with our market being seen as a safe haven from potential Euro contagion, swap rates are still close to all time lows. "Mortgage lenders generally did not pass in the fall in gilt yields and swap rates and so despite the modest rise in yields since the election, fixed rate mortgage pricing is not under any immediate pressure. The chickens coming home to roost with the Euro experiment at the same time as our election have helped save the day for our mortgage rates! `Once the basis of our new government has been resolved it will be easier to firm up on the best strategy for choosing a mortgage but the Eurozone sovereign debt scare is a timely reminder that the global economy is far from being out of the woods. "The size of the bail out for the Eurozone countries indicates the potential seriousness of the problem if the EU had not taken action to defend the Euro and as things stand at the moment trackers still appear to offer better value than fixed rates. "However, for those who prefer the certainty offered by fixed rates 5-year fixes are now again available at the sort of levels seen just after Bank Rate fell to 0.5% in March last year.` Mon, 10 May 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1117Buy-To-Let Back To Normalhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1118Data published today by the CML shows that buy-to-let activity in the first three months of this year settled back to former levels. This follows a modest upturn in house purchase by investors at the end of last year triggered by the stamp duty holiday. As a result, the number of buy-to-let loans declined by 15% to 22,000 in the first three months of 2010. Over the same period, the value of lending also declined, by 12% to £2.1 billion. Leaving aside the impact of the stamp duty holiday, however, buy-to-let lending has now remained broadly flat over each of the last five quarters. Compared to the first quarter of 2009, the value of buy-to-let lending in the first three months of this year is unchanged, while the number of loans declined by just 2%. Low interest rates are continuing to contribute to a modest improvement in buy-to-let arrears. At the end of March, the number of loans with arrears of more than 1.5% of the mortgage balance totalled 19,300 (1.56% of all buy-to-loans), compared with 20,700 (1.69% of loans) at the end of 2009, and 28,800 (2.47% of loans) a year ago. The number of buy-to-let properties taken into possession in the first quarter of 2010 totalled 1,400, an increase from 1,200 taken into possession in the preceding three months but unchanged from the total a year ago. Meanwhile, cases where a receiver of rent had been appointed totalled 11,200 at the end of March, down from 11,900 three months earlier but up from 9,200 a year ago. These cases are similar in many ways to a lender taking possession of a mortgaged property, with the landlord being removed and the receiver collecting rent and passing it on to the lender to apply to mortgage payments. Commenting on the figures, the CML`s director general Michael Coogan said: "Ignoring the effect of the stamp duty holiday, the lending figures show that the buy-to-let market has settled into a period of stable, low-volume activity. Generally, prospects for the rental market are good. But uncertainty over house prices, interest rates and the availability of mortgage funding is continuing to hold back the buy-to-let market at this stage. "We also want to see how the new coalition government takes forward the Treasury`s initiative to encourage higher investment in the private rented sector, bearing in mind the scope for growth that exists to meet future demand from tenants. There is a case for targeted measures in the Budget, even though the primary focus will be the fiscal deficit." Thu, 13 May 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1118Public Perception Unrealistichttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1119According to the research, many believe they are unable to get a suitable mortgage due to lenders keeping a tight hold on lending criteria. After a decade of so called "easy credit", the tightening of lending criteria over the last 18 months has had a lasting effect on the public. Over the last 12 months, perceptions of what people can afford when it comes to income multiples have remained on the pessimistic side, with the average now being placed at just 3.3 times an individual`s salary. One fifth (22%) of Brits think they can only get between 0.5 and 2.5 times their salary and almost a quarter (24%) of Brits believe lenders would restrict a home loan to up to 3 times their salary. Two fifths (40%) of people believed they need at least a 20% deposit or more in order to secure a mortgage in the last 12 months. The mortgage market has experienced tremendous change and after an initial tightening of lending criteria last year it is understandable that many consumers still believe this to be the case and are confused as to what is now available to them. It is not surprising that many potential homeowners have taken a pessimistic view of lending criteria, deposit size and what income multiples are available to them. In reality many lenders are now relaxing their lending criteria, offering now around 4 times or more an individual`s income. It will be interesting to see whether public perception will keep up with these developments. Lenders have also recently re-entered the high loan-to-value space, meaning that borrowers do not require such a large deposit in order to get an affordable mortgage. An increasing number of lenders are now offering 90% LTV deals, meaning especially first time buyers who were previously priced out of the market can now look to see whether they can access an affordable deal. While we haven`t returned to a period of ‘easy credit`, there is now a much higher quantity of affordable mortgage deals on the market place. Consumers are urged to visit a whole of market mortgage adviser to dispel the myths and get the best advice on their mortgage options. Many may be unnecessarily putting off buying a property due to their belief they cannot obtain their required mortgage.Wed, 19 May 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1119Hips Suspendedhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1120Home Information Packs have been suspended with immediate effect pending primary legislation for a permanent abolition. CLG Secretary of State Eric Pickles said: `HIPs are history. This action will encourage sellers back into the market and help the market as a whole, and the economy recover.Housing minister Grant Shapps said: `This is a great example of how this new Government is getting straight down to work by cutting pointless red tapeThu, 20 May 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1120Tenants Would Prefer To Be Buyershttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1121Six in ten tenants would like to buy, but cannot afford to, Rightmove reported this morning. The movement from the rental sector on to the housing ladder is at a virtual standstill. The findings emerged in a consumer survey it conducted into attitudes towards renting, which also found some signs of growing acceptance that renting is a long-term choice. Although only 13.6% of tenants said they rented because they liked it, this proportion was up from 12.8% this time a year ago. As well as 59% wishing they could afford to buy right now, a further 27.4% said they wanted to buy in the future. Few tenants (just 7%) are expecting lower rents, and 40% are expecting rent rises over the next year: most expect rises of up to 10%. Over 3,000 people took part in the survey. Rightmove commercial director Miles Shipside said: `The ongoing mortgage famine has meant a consistent demand by lenders for substantial deposits over the last year and there is a strong correlation between this and the frustrations of would-be first-time buyers unable to get on the ladder. `It is unlikely these figures will change until lenders can access much more wholesale funding, or potential borrowers can save up the bigger deposits required.` According to FindaProperty, asking rents rose by 2.7% in the first three months of this year. Source; EAT.Mon, 24 May 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1121House Prices Nearing 2007 Peakhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1122House prices are gradually nearing the same heights seen during the 2007 peak, new figures have shown. Nationwide found that the average house price in May was up by 0.5 per cent to £169,162 from April`s level of £167,802. This number is just 9.5 per cent lower than the recorded high in October 2007. Martin Gahbauer, the building society`s chief economist, said: "Since reaching a trough in February 2009 - following a drop of 19.3 per cent from their October 2007 peak - house prices have risen by 12.2 per cent." These figures compare with house price statistics from the Land Registry, which show a 0.2 per cent monthly rise from March to April with the north-east showing the biggest monthly increase at 3.1 per cent. Annually, Greater London experienced the largest climb of 14.8 per cent while Yorkshire & The Humber only moved up 0.7 per cent. However, according to Nationwide, between April and May the annual rate of house price inflation fell from 10.5 per cent to 9.8 per cent. Fri, 11 Jun 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1122Conditions Ripe For First-Time Buyershttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1123Most potential first-time buyers would be better off buying rather than renting, according to Santander. Buying is cheaper than renting in every area except London and the average first-time buyer (outside London) could save £87 a month once on the property ladder, according to the research which shows the average first-time buyer mortgage payment is now £334 a month. Only those in the capital will be better off if they continue renting. Despite rental prices in London being roughly 56% higher than the average across the UK, at £701 a month, exceptionally high house prices mean it would, on average, cost potential first-time buyers an additional £359 a month to buy. The savings to be made through buying, as opposed to renting, have increased dramatically in the last six months. In October last year the average saving for those potential first-time buyers able to buy was £52 a month. The climb in potential savings to £87 now represents an increase of 67% Phil Cliff, director of mortgage marketing at Santander UK said: "This research strongly supports the idea that in the majority of cases owning can be less expensive than renting. "The now ‘average` LTV of 75% for first-time-buyers has provided an obstacle in some cases but saving for a deposit is clearly a wise move. Lenders are also looking to offer higher LTV products while the Government`s announcement that it will help boost the number of new homes is all positive news for those wishing to take their first steps on the property ladder. We were the first lender to increase our maximum first-time-buyer LTVs on apartments and houses to 80% and 90% respectively, demonstrating our continued commitment to the FTB market." Santander also has a number of products available to help those looking to purchase a property for the first time including a three year fix at 5.99% up to 90% LTV with £495 fee. For those homebuyers seeking a more flexible option Santander also offers a two year tracker at 4.99% up to 90% LTV with £499 fee. This product includes free valuation and £250 cashback on completion to help reduce upfront costs. The first few months of 2010 have seen rents start to climb which has meant that the savings to be made for potential first-time buyers have grown considerably. Tue, 15 Jun 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1123Clg Data Shows House Prices Up 10 Per Centhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1124The latest index produced by Communities and Local Government show that average house prices rose by 10.1% in the year to April 2010. The latest statistics include data based on mortgage completions during the month of April 2010 and shows that house prices rose over the year to April, up from 9.7% in the year to march. In the month to April 2010 there was a rise of 0.4% in house prices compared with a fall of 0.4% over the same period last year, resulting in an increase in annual house price growth. Annual house prices rose in all UK countries except Northern Ireland in the year to April 2010. Annual house price growth was 10.9% in England, 2.2% in Scotland and 11.3% in Wales. In Northern Ireland prices fell by 8.9% on average in the year to April. All regions have seen an increase in house prices over the year to April. The largest being in London (16.8%) and the smallest in Yorkshire and the Humber (4.0%). There was annual growth in the East of England (11.9%), South West (11.5%), South East (10.1%), East Midlands (9.2%), West Midlands (9.1%), North East (7.8%) and North West (6.7%). London remains the English region with the highest average house price (£332,677). The North East was the lowest at £139,595. Annual growth in UK house prices for first time buyers was 12.2% in April compared to 12.6% in March. There was an increase of 1.4% in the month to April compared to an increase of 1.7% in the same period last year. Annual growth for former owner occupiers was 9.3% in April compared to 8.6% in March. Between March and April 2010 the price of properties bought by former owner occupiers grew by 0.5%, compared to a fall of 0.6% in the same period last year leading to a small decrease in the annual growth. The average house price paid by first time buyers in the UK in April was £153,803 compared to £240,629 paid by former owner occupiers. Annual growth in UK house prices for new properties was 7.6% in April compared to 1.3% in March. There was an increase of 5.6% in the price paid for new properties in the month to April compared to a fall of 0.6% in the same period last year. This is the largest month on month increase for new properties since December 2008. The average house price paid by first time buyers in the UK in April was £153,803 compared to £240,629 paid by former owner occupiers. Annual growth in UK house prices for new properties was 7.6% in April compared to 1.3% in March. There was an increase of 5.6% in the price paid for new properties in the month to April compared to a fall of 0.6% in the same period last year. This is the largest month on month increase for new properties since December 2008. The annual house price growth rate for pre-owned dwellings was 10.3% in April, the same as in March. The average price paid for a new property in the UK in April was £195,675 and the average price paid for a pre-owned property was £208,451. Tue, 15 Jun 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1124Age Of Aspiration Is Back, Says Shappshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1125Aspiration to home ownership will be encouraged, said housing minister Grant Shapps, but he made it clear that renting will remain an important choice. In his first speech as housing minister, he said that the age of aspiration is back. It was not right to deny a new generation something his own generation had enjoyed – the chance of home ownership. `This new Government is not in the business of pouring cold water on people’s aspirations.` He said it was human nature to aspire to owning the roof over one’s head. And he promised:`I will work every day to help people achieve their aspirations to own their home. `Of course, I am not arguing that everyone should somehow aspire to home ownership. Renting a home can be a positive and flexible choice. And social housing provides a sense of security for millions of families. `I am simply saying to those who aspire to own their own home: this Government will support you. You will not be ignored. The age of aspiration is back.` He went on:`There are an estimated 1.4m households who aspire to own a home but are unable to do so because of house prices and mortgage availability. `There are hundreds of thousands of people in rented accommodation, or living with parents, who yearn to be first-time buyers. It is now true that the average age of the first-time buyer is 37. `That 37-year-old is not asking for a hand-out: they just want a chance. We need to give them that opportunity.` Talking about the massive challenge to beat Britain’s financial crisis, Shapps said it was important to create a stable housing market. `I see responsible lending and responsible borrowing as two sides of the same coin,`he said. Thu, 17 Jun 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1125`No More Red Tape` For Private Landlordshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1126Housing Minister Grant Shapps promised(10th June 2010) England`s one million landlords that the Government has no plans to introduce new regulations on the private rented sector. Speaking at the first Communities and Local Government questions since the formation of the Coalition Government, the Minister confirmed that the legal framework already in place strikes the right balance between the rights and responsibilities between landlords and tenants. Wed, 23 Jun 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1126Cost Of Housing Falls By 6 Per Centhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1127The cost of owning and running a home in the UK has dropped by 6% over the past two years, according to new research by Halifax. Between April 2008 and April 2010, the average annual cost associated with owning and running a home fell by £544 from £9,564 to £9,020. In real terms (i.e. after allowing for retail price inflation), the cost of housing has fallen by 9%. Housing costs in the UK are now equivalent to 27% of gross average full-time earnings, down from 30% in 2008. The fall in the cost of housing since 2008 has been driven by a 19% (£881) decline in mortgage payments (interest and capital repayments). The average mortgage rate paid by existing borrowers fell by 2.13 percentage points between April 2008 and April 2010 from 5.80% to 3.67%. Regionally, London (£11,762) and the South East (£10,457) have the highest average annual costs of owning and running a home. Housing costs are lowest in Northern Ireland (£7,331). Home owning and running costs as a percentage of gross average full-time earnings are lowest in London (24%) despite the capital having the highest absolute costs. However, with the level of earnings varying considerably across the capital, housing costs will be much less affordable for a significant number of households. Housing costs are highest in relation to earnings in the East of England (31%). Over the past year, the average expenses associated with owning and running a home have increased by 1.3% (£116). This is less than a third of the rise in retail prices (5.3%). Suren Thiru, housing economist at Halifax, commented: "Over the last two years, the cost associated with owning and running a home in the UK has fallen, entirely as a consequence of reduced mortgage payments. The drop in housing costs has helped to ease the strain on household`s finances, providing some relief to homeowners during the economic downturn." Mon, 28 Jun 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1127Purchases Continue To Lead The Markethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1128The latest mortgage index from John Charcol reveals that 6 out of 10 mortgages taken in June 2010 were for purchases. Drew Wotherspoon, director of marketing at www.charcol.co.uk, commented: "Purchase activity continues to maintain dominance over remortgaging, as it has done for the last 12 months. `The only time when remortgaging has accounted for more business during the last year was in February, but I suspect this had more to do with the poor weather keeping purchasers tucked up indoors than remortgaging proving popular. "For those borrowers who are in a position to remortgage it would seem that they are waiting for some movement in bank rate, or at least some more definitive information as to when it will move. Whilst this strategy is understandable, increasing numbers of borrowers could be considerably better off if they moved their home loan now. As ever, getting advice on your own situation is absolutely the right thing to do." According to John Charcol there is little change in the product preference of most borrowers, with the cost of fixed rates and the chance that rates will remain low for some time to come, putting consumers off fixing. And first-time buyers were thin on the ground. "The number of first time buyers arranging a mortgage continues to be tiny, with the group accounting for just 5.4% of all transactions with John Charcol in June,` said Wotherspoon. `This is the lowest level it has been since December 2008 and suggests that a combination of strict lender criteria and inherent nervousness in the market continues to severely affect the amount of new entrants. This group desperately needs more competition in the 90% LTV market." Thu, 22 Jul 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1128June House Prices Up 0.1 Per Centhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1129The June data from Land Registry`s House Price Index shows an annual price increase of 8.4%, with house prices up 0.1% in the month to June. This is the eighth month in a row in which the annual figure has been positive and takes the average property value in England and Wales to £166,072. House prices are now around the same levels as they were in the summer of 2006, according to the Land Registry. All regions in England and Wales experienced increases in their average property values over the last 12 months. The region with the highest annual price change is London with an increase of 12.2%. The region with the smallest annual price rise is the North East with a movement of 0.7%. Wales experienced the greatest monthly rise with a movement of 2.9%. The North East region experienced the most significant monthly price fall with a movement of -1.3%. The most up-to-date figures available show that during April 2010, the number of completed house sales in England and Wales rose by 26% to 49,323 from 39,280 in April 2009. Commenting on the Index, NAEA chief executive Peter Bolton King said: "The latest Land Registry statistics show that the housing market is slowly recovering. This is to be welcomed, but many people are still excluded from owning a home because lending remains unfairly restricted. "There are enormous regional differences in house prices and in the state of the housing market recovery generally. "Buyers, especially first time buyers, are confused and should take advice from professional NAEA members on their local market."Thu, 29 Jul 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1129Buy-To-Let Recoveringhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1130Data from the Council of Mortgage Lenders revealed that buy-to-let lending rose 13% in the second quarter with 24,900 loans made compared to 22,000 in the first quarter of this year. Annually, buy-to-let lending improved by 15% up from 21,600 loans made in Q2 2009. The value of buy-to-let lending in the first quarter was £2.4 billion, of which £1 billion was remortgaging. Although business is only just over a quarter of its level of three years ago, both the number and the value of buy-to-let loans were at their highest level since the fourth quarter of 2008, other than in the fourth quarter of 2009 - where demand was artificially inflated by the end of the stamp duty concession. As at the end of June, there were 1.26 million buy-to-let mortgages outstanding, worth a total of £149 billion. By value, buy-to-let mortgages accounted for 12% of all mortgages, the highest proportion since records began. The CML data also showed that in the buy-to-let market, arrears cases have improved markedly. Repossession rates remain higher than in the owner-occupier market, however, which the CML put down partly to the extended forbearance that lenders extend to home-buyers to try to help prevent them losing their homes. CML director general, Michael Coogan, said: "The buy-to-let market has continued to grow, albeit slowly, throughout the period since the credit crunch. And with fewer people able to afford the entry costs to home-ownership, as well as the pressure on social housing, tenant demand for private rented property will remain strong. `Finance for private landlords, whether institutional or individual, is crucial if the UK is to have enough homes to meet the needs of the population. Funding conditions for lenders remain tight, but there is every reason to expect the buy-to-let sector to continue to make a powerful contribution to helping meet the country`s varied housing needs." Source:Sarah Davidson,Thu, 19 Aug 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1130Improved Affordability For First-Time Buyershttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1131Affordability has significantly improved for first-time buyers despite it being the main reason why they haven’t stepped onto the property ladder, according to the Halifax. The Halifax’s research reveals that monthly mortgage payments as a percentage of income are nearly half that of the level of 2007. In contrast, over half of first-time buyers say that affordability is the main reason why they have not stepped onto the property ladder. The numbers of first-time buyers in the first half of 2010, at 94,600, are half that of the same period for 2007, but have increased by 28% against the same period last year. The combination of lower house prices and interest rate reductions to historically low levels has created a marked improvement in monthly costs for those buyers wanting to take their first steps onto the property ladder. Indeed, the proportion of a typical new homeowner`s disposable earnings devoted to mortgage payments has almost halved from a peak of 50% in June 2007 to 28% in June 2010; below the 34% average over the past 25 years. In addition to this, 94% of first-time property purchases are now exempt from stamp duty, with 54% of first-time buyers saying that is has helped them to purchase their home. Despite the marked improvement in monthly affordability, tightening in lending criteria since the onset of the credit crunch in 2007 may have deterred first-buyers from trying to secure mortgage finance, there are now indications that the environment is improving. Only 3% of first-time buyers say a lack of suitable mortgage products has prevented them buying a home and eight out of ten first-time buyer mortgages are approved. Whilst deposits in loan to value terms increased during 2008, the average deposit put down by a first-time buyer today has been unchanged as a percentage of purchase price since early in 2009. Stephen Noakes, commercial director for mortgages, commented: "We believe it`s important that first-time buyers understand that whilst there are still challenges in raising deposits, other market conditions are more positive. `Affordability has significantly improved, meaning the amount of a typical first-time buyer`s monthly pay packet that needs to be dedicated to their mortgage is now below the 25 year average and importantly, despite perceptions, eight out of ten first-time buyer mortgages are approved." The research found: •Despite slower growth in house prices and interest rates holding at historically low levels, only 35% of buyers say that they are taking advantage of the current economic climate. •Eight out of ten first-time buyer loans are approved. •94% of all first-time home purchases are now exempt from stamp duty. •Only 3% of first-time buyers state that a lack of mortgage products has held them back from purchasing their first home. •First-time buyers put down an average deposit of £30,380 in 2010 quarter 2, equivalent to 22% of the property price. •The typical buyer takes between three and five years to amount their deposit in the current market. •A 10% deposit on an average first-time buyer property today is £13,940. •64% of buyers purchase a home because they`d rather own than rent. •Seven in ten are making lifestyle sacrifices in order to save their deposit. •Nearly a third of first time buyers are stepping onto the property ladder in order to take the next step in Life such as getting married or having children. •One in ten buyers is putting off getting married or having children in order to buy a home. •12% are taking a second job to help their finances. •Over a quarter of homebuyers have not been on holiday in over a year to save money for a deposit. •10% move back in with their parents to help save for their deposit. •44% of buyers will compromise on the area they move to in order to get the type of property they want Fri, 20 Aug 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1131First-Time Buyers At Highest Level Since Februaryhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1132The number of first-time buyers increased by 80% in July, according to John Charcol As Drew Wotherspoon, director of marketing at Charcol.co.uk, said: `This is the highest level since February this year and perhaps suggests that first timers are willing to dip their toe into the market again after sensibly putting any plans on hold pending the outcome of the election and subsequent emergency budget. `However, one month doth not make a trend, so John Charcol is wary in drawing too many conclusions from this figure. That said, it will be interesting to see over the coming months if the trend does continue.` The survey also showed that purchase mortgages at highest levels for years More than 6 in 10 mortgages in July were for purchases, according to John Charcol, and initial signs reveal August will be even higher. `For the first time in what we believe is decades, the proportion of mortgages for purchases broke the 60% barrier in July, revealing a certain confidence in the future of the market," said Wotherspoon. `There is much talk of a double dip and a large correction in the housing market still to come, but these figures would certainly go some way towards questioning this theory. `The rule book may well have been ripped up when the crunch began, but the old adage of supply and demand still holds true. `Whilst we have limited new stock demand will always outstrip supply in the UK. The last few years have taught us to expect anything, but a further large drop in prices looks very unlikely, unless the FSA’S proposed rules on affordability are implemented as currently drafted. `At the same time we see remortgaging still remaining in the doldrums. Just two years ago it accounted for 75% of the market, whereas it is now just 40%. With tightening of lender criteria and many people reverting to reasonably attractive rates there is little surprise in this, but borrowers should definitely keep their eyes on the ball. `Logic dictates that a move in bank rate will spur some people into action, but many shouldn’t wait for that. Increasing numbers of borrowers would be better off if they moved.` Source: Mortgage Adviser.Thu, 26 Aug 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1132Family Homes Rises Surpass Other Propertieshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1133The average price of a detached family home has risen by more than any other property type over the past year, according to new research by Halifax. Based on Halifax`s own house price data, owners of detached properties have seen the value of their home increase by £91 a day over the past year with the average price rising by 13% from £266,060 in 2009 Quarter 2 to £299,295 in 2010 Quarter 2. Prices for all other property types rose by 8-9% over the period. Semi-detached homeowners are the biggest property winners over the past decade. Semi-detached properties recorded the largest average price increase (111%) since 2000; marginally higher than for terraced properties (110%) and bungalows (109%). Flats were the only property type not to double in value over the last ten years with an 81% average increase. Semi-detached and terraced homes have remained the most popular types of property purchased over the last ten years. These property types combined accounted for 61% of all home sales in 2010; up from 58% in 2000. Suren Thiru, Halifax housing economist, said: "Although the price of all property types has been boosted by the combination of historically low interest rates and lack of properties available for sale over the past year, it is notable that detached homes have seen the largest average price rises. `Such properties are likely to have benefited from greater demand from those buyer groups currently most able to enter the housing market. "The changing pattern of homes bought over the past decade highlights some significant socio-economic forces. For example, the rise in the proportion of sales of flats and terraced homes reflects the increasing trend for people to live alone." The average price of a detached property is currently 63% above the average UK house price. Terraced properties remain the least expensive property type with an average price that is 17% below the average for all properties. The gap between most expensive property types (detached homes) and the least (terraced homes) has narrowed over the past decade from 106% to 98%. However, moving up the property ladder has become harder over the past three years as the gap between the least and most expensive property types has risen from 71% in 2007 to 98% in 2010. The average price of terraces fell more during the downturn and has risen by less during the recent recovery Source; Mortgage IntroducerFri, 03 Sep 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1133More People Than Ever Dream Of Owning A Homehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1134CML director general Michael Coogan has attacked financial policy-makers for making it more difficult for people to get on the housing ladder. He spoke out after a poll, carried out by YouGov for the CML in advance of next week’s Future Housing conference, found that more people than ever aspire to own their own home in the long term. Some 85% of people cited home ownership as the tenure they hoped have in a decade from now, suggesting the aspiration of home ownership remains firmly rooted in the British psyche. The CML has asked the same questions about these aspirations periodically since 1975. The last time the survey was undertaken in 2007, the proportion who hoped to be home owners in ten years’ time was 84%. Over the short term, however, the desire for home ownership has dipped from 78% to 76%. There is a much lower short-term appetite (42%) for home ownership among 18 to 24-year-olds, although this is also the age group with the highest ten-year aspirations (88%). Next week’s conference poses the question: `Can an age of austerity also be an age of aspiration?` It will be looking at the role not only of home ownership but also the private and social rented sectors, and the future of intermediate tenure. Coogan, who is also speaking at the conference along with a range of housing experts, said: `It is crystal clear that most people see home ownership as their tenure of choice over the long term. `But the unintended consequence of regulatory change is that it is going to be permanently tougher for people – especially young people – to fulfil that aspiration in the future, even if they are responsible with their finances. `Home-ownership levels are already falling, and they will continue to fall. Is that the outcome that policy-makers want? It is certainly not what consumers want, but it’s what they’re likely to end up with. `We urge politicians and regulators to pause and think again about the cumulative effects of their well-intentioned but poorly targeted package of regulatory changes.` Fri, 17 Sep 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1134Housing... We Have A Problem.http://www.twmproperty.co.uk/newsdetails.aspx?ID=1135Virtually everyone (96 per cent) believes that the UK has housing problems, according to new research undertaken for the Council of Mortgage Lenders by YouGov, and outlined at the CML’s `Future Housing` conference today by CML chief economist Bob Pannell. The biggest problem is seen as the fact that young people cannot afford to buy, or take on too much debt to do so, cited by 80 per cent of respondents. Too many people on housing waiting lists (48 per cent), housing market boom and bust (44 per cent), the cost of moving house (37 per cent), and the lack of supply of new homes (35 per cent) were also seen as problems – but each of these was cited by fewer than 50 per cent of respondents, paling by comparison with the perceived plight of young would-be first-time buyers. Yet consumers appear sceptical about whether the government can make a difference. While 15 per cent thought it likely or very likely that the government could improve first-time buyer affordability over the next five years, 80 per cent thought it unlikely or very unlikely. Indeed, there was a high degree of scepticism about the likelihood of the government alleviating any of the problems identified. In every case, the proportion of people who felt help was unlikely exceeded the proportion who felt it was likely. However, the balance of opinion was less negative about the likelihood of government addressing energy efficiency (-2 per cent), the size of new homes (-10 per cent), and the prospect of some social tenants transitioning to the private sector (-14 per cent). Commenting on the findings, CML chief economist Bob Pannell (left) observed, `The survey found that, on balance, people expressed support for tighter lending criteria. But their high level of concern about would-be first-time buyers sits very uneasily with this. Overall, there is a strong case for saying: be careful what you wish for.` Source: Property DrumTue, 28 Sep 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1135Millions Believe Their Home Is Their Pensionhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1136New research among the working over-50s, by retirement specialist LV= reveals approximately 1.2 million may cash in their property to help fund retirement. Over half (54%) of over-50s who are still in work would advise their children to invest in property for their retirement too, just greater than the number that would recommend their children pay into a pension (53%). 44% of over-50s in work still have a mortgage to pay: a fifth believe that a rise in interest rates would reduce their ability to save for retirement as they would have to keep up with mortgage repayments. Homeowners nearing retirement say that on average over £21,000 has been wiped off their property value (totalling £60 billion) since the start of the recession. However, this has not put many off using the equity in their homes to help fund their retirement, with nearly a quarter (23%, equivalent to 1.2 million people) of working over-50s considering using some, or all of the equity in their home to fund their retirement. A further 9% will also be taking advice on using their property equity before they retire. It seems to be increasingly commonplace for those approaching retirement to consider using the equity in their property as part of their overall retirement plan. Continuing doom and gloom over volatility in the housing market and seeing some properties fall in value, hasn’t deterred the UK’s `HIPpies` [Home is pension] and many are still positive that the equity they have built up over the years in their home is their best chance of having a more comfortable retirement. Anyone considering using their property to fund retirement should seek specialist advice, and should also talk to their family about it. Source; Mortgage Introducer Thu, 30 Sep 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1136A Lost Generation Of Homebuyers Possiblehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1137Aspiring home owners could be lost as the barrier to home ownership in the UK continues to widen. This is according to a report released today by specialist insurer Genworth Financial which outlines how the number of 90% LTV mortgages originated - typically associated with first-time buyers (FTBs) - fell from 245,000 in 2006 to 28,000 in 2009. This is a decrease of 89%, resulting in approximately 100,000 first-time buyers being excluded from the market year on year since 2006. Genworth says that increasing limitations on the availability of high loan-to-value (LTV) mortgages are failing first-time buyers, for whom owning a property remains a key aspiration and a means to improved status and security, as well as future wealth creation. But experts also warn of the far reaching implications and unintended consequences the situation may have on the UK’s economic recovery and future savings gap. The Barrier to Home Ownership Report, produced in conjunction with Professor Steve Wilcox, chair of the Centre for Housing Policy at the University of York, provides a comprehensive review of the UK FTB mortgage market landscape, and examines the extent and characteristics of the UK’s wealth barrier that now prevents such significant numbers of younger households getting on the property ladder. Its key findings are: • An average 10% deposit for a UK first-time buyer in 2010 is £18,600; in London the average is £29,700. • The numbers of first-time buyers under 30 purchasing with assistance has remained constant, but by 2009 these made up 80% of all younger buyers, as the number of unassisted buyers declined. • Younger households continue to aspire to home ownership in the medium and long term; 42% of prospective first-time buyers regard private renting as ‘throwing money away’. • The ‘deposit barrier’ to home ownership is now cited as by far the most significant obstacle by households seeking to become home owners. • The deposit barrier is socially uneven. It impacts most on households who are unable to get assistance with a deposit from parents or friends. It is a barrier to social mobility. Since the credit crunch, lenders have withdrawn almost all high loan-to-value mortgage products usually associated with first-time buyers and as a consequence, the majority of prospective first-time buyers have been excluded from the market. Not only does this have wide-reaching ramifications for the health of the UK economy as a whole, but the deposit barrier represents a new obstacle to social mobility. Ironically, there has never been a better time to get on the property ladder as interest rates and property prices are at an all time low. Yet the current deposit requirements ensure home ownership is kept firmly out of reach for all but a privileged few. This report examines in detail the disparity between supply and demand and draws on a wide range of industry data.` Wed, 20 Oct 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1137Number Of New Homes Falls 23% In A Yearhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1138The number of new homes built in England fell to a record low in the past year, down 23% on 2008/9. Just 128,680 net additional dwellings were provided in 2009/10 compared with around 167,000 in 2008/9. The previous record low was 130,510 in 2001/02. Numbers fell on the previous year in every English region. The North-West saw the largest annual decrease (38%), followed by the South-East (32%). The figures were published by Communities and Local Government just after the Coalition announced large cuts to housing budgets in the Spending Review. Housebuilders across the country have been warning that action is needed to halt the decline and avoid deepening the housing crisis. Five months after scrapping housing targets, local councils and builders are still waiting for the introduction of the new national planning framework and the promised New Homes Bonus incentive for housebuilding. Stewart Baseley, chairman of the Home Builders Federation, said: `There is no doubt that the previous planning system was not succeeding in delivering enough homes – but housing delivery, crucial to solving the housing crisis, is not yet increasing, and in many areas has actually fallen. `These figures reveal the extent of the housing supply problem and the need for real action now, cutting red tape and implementing incentives so we can build the homes the country needs.` Source; Estate Agency TimesWed, 27 Oct 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1138Over 61,000 Tenants Enter Rental Markethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1139Tenant demand reached new heights in quarter three 2010 with over 61,000 new tenants registering for rental accommodation – a 19% increase compared to the previous quarter, latest figures from Countrywide show. Countrywide has a network of 1,300 letting and estate agency branches and the group reports that the number of tenants looking for rental accommodation has jumped by 44% during 2010 with July seeing over 20,000 applications – the highest number for a single month since records began. A combination of record demand and supply issues have caused the total number of properties available to rent in the UK to fall by 6.9 percent in Q3 2010 compared to Q2 2010 - a 27% fall on the total number of properties available to rent in Q3 2009. There is now an average of 5.8 tenants vying for each property across the UK – up from 5.5 in Q2 2010. Whilst apartments made up the greatest percent of stock on agents books, two bedroom houses continue to be most popular with an average of 10.2 tenants vying for each property. In contrast to Q2 2010 when houses were the most sought after property type, demand for one and two bedroom apartments have jumped sharply, most notably in London and the North West. The latest findings also reveal that properties are being rented out within 13 days of entering the market – a reduction of one day compared to Q2 2010 and seven days quicker than at the start of the year, with many properties let within hours of coming onto the market. Couples under 35 made up the highest percentage of new tenant applications in Q3 2010. However the demographic of tenants remained broadly similar to Q2 2010 levels despite the seasonal influx of student tenants experienced during the summer months New tenant applications have increased dramatically and existing tenants are choosing to rent for considerably longer periods of time, which is impacting on the amount of properties available to rent. With demand at an all time high, now is exactly the right time for private home owners to consider renting their property if they are unable to sell but still want to move The private rental sector seems to be the only viable option for a growing number of people and this issue will only intensify, especially in the wake of the government’s cuts to the social housing budget. Regional overview • Studio flats and one bedroom properties experienced the greatest demand in the South East – a 49% increase compared to Q2 2010. Studio flats and one bedroom properties made up 18% of the total available properties in the South East during Q3 2010, a fall of 9% from Q2 2010. • In the South West, first time landlords made up 26% of new landlords entering the market – up 2% compared to Q2 2010. • The West Midlands had the greatest proportion of over 35’s looking for rental accommodation – making up 16% of all new tenant applications in Q3 2010. • In Scotland, 25% of all new tenant enquiries were for two bedroom properties. • Houses were most in demand in the North with 23% of all new enquiries for two bedroom properties. The private rental sector is the only viable option for a growing number of people and this issue will only intensify, especially in the wake of the government’s cuts to the social housing budget. The government must do more to incentivise cash investors and help private landlords in need of Buy-to- let mortgage funding as rental supply is a growing national concern. Source; Mortgage Introducer Thu, 28 Oct 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1139Base Rate Held And No Quantitive Easinghttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1140The Bank of England Monetary Policy Committee has voted to hold the base rate at 0.5% and against extending its programme of quantitative easing. There had been some speculation in the market earlier this week that the Bank might decide to print more money this month to stimulate the economy. But following stronger than expected GDP growth of 0.8% in the third quarter the MPC has delayed further quantitative easing. The MPC first dropped the rate to 0.5% in March 2009, where it has remained since.Thu, 04 Nov 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1140House Prices Up 1.8 Per Centhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1141House prices rose 1.8% in October to £164,919 from the month before said data from the Halifax. But prices in the three months to October were 1.2% lower than in the preceding three months, which Halifax provides a clearer indication of the overall market trends, smoothing out the volatility caused by the reduced number of monthly transactions in all house prices indices’ monthly figures. October prices were 2.3% lower than at the end of 2009 on a seasonally adjusted basis (-1.2% unadjusted). Annually, house prices are still seeing inflation with October 1.2% higher on an annual basis as measured by the average for the latest three months against the same period a year earlier. This continues the recent downward trend from a high of 6.9% in May. Martin Ellis, housing economist at Halifax, said: "There has been a very mixed picture of monthly house price rises and falls throughout 2010, which continued in October with prices rising by 1.8% following September`s decline, reflective of flat house prices. `The rate of decline in prices on the three month-on-three month measure is markedly less than the quarterly declines of more than 5% recorded during the second half of 2008. `An increase in the number of properties available for sale in recent months, together with a decline in demand, has put some downward pressure on prices in recent months. `We do not believe that prices are set to fall sharply over a sustained period. Interest rates are likely to remain very low for an extended period, which will continue to support the improved mortgage affordability position for homeowners. Low rates and stable employment levels are benefiting homeowners." Source; Mortgage AdviserSat, 06 Nov 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1141Remortgages Back In Businesshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1142The latest mortgage index from John Charcol reveals that borrowers making enquiries about remortgaging spiked by 42% in October. The index shows that purchase enquiries were broadly the same. It seems that people are finally considering their options and are no longer content to simply sit on their lender`s Standard Variable Rate (SVR). Is it time to lock into a deal? "To fix or not to fix is undoubtedly a question being asked up and down the country currently by many mortgage borrowers, as they decide whether rates have reached their nadir and what the future movement of wider interest rates looks like,` said Wotherspoon. `Answering either question is tough, but John Charcol thinks that it is still too early to jump into a fixed rate if a borrower is comfortable playing the waiting game a little longer. "Of course, what Bank Rate does is crucial, but equally important is what the market expects Bank Rate to do. If we stay in a low rate environment for several more years, as many think we will, then moving to a fixed rate now will prove costly in the long run. However, should we be taken by surprise and rates move upward sharply, then fixing soon would be a wise move". It is critical that borrowers seek advice on their own situation - generic advice is not really advice at present It really is about the individuals circumstances. Wed, 10 Nov 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1142Lenders See Future For Interest-Onlyhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1143Both Nationwide and Lloyds Banking Group say they believe there is a continued place for interest-only mortgages in a post Mortgage Market Review world. Speaking at Sesame’s London symposium yesterday, Paul Howard, head of corporate accounts for Nationwide, and Kevin Purvey, head of intermediary at Lloyds-owned Cheltenham & Gloucester, said interest-only mortgages had a future despite indications from the Financial Services Authority that all mortgages could become repayment-based post MMR. Howard said: `I hope we don’t talk ourselves out of interest-only because the market would be poorer for it. There are clearly some for whom interest-only is a very sensible way of funding their mortgage.` Last week at Mortgage Business Expo Sheila Nicoll, director of conduct policy at the FSA, said the industry should submit their views on the future of interest-only mortgages to the regulator as part of the consultation for CP 10/16. Howard added: `Maybe too many people have taken interest-only but I think it is a very viable and a very meaningful method of repaying the mortgage and I think [explaining] that should be part and parcel of the advice process. I see a bit of a consensus developing in the market – there have already been a number of adjustments to lenders’ requirements and criteria. I hope that we’ll reach a consensus that says this is the level where everyone is happy with interest-only, and that the FSA looks at that and is comfortable with that as well.` This year several lenders have tightened criteria on interest-only mortgages in an apparent move to reduce this type of lending. Lloyds Banking Group was the first to retract, limiting interest-only lending to properties below £500,000. But C&G’s Purvey said: `The market is still there for interest-only. I think what we’re saying is that people understand the information they should have. It’s also important to note that interest-only is still under consultation and it’s right and proper that we review and ensure that people have adequate means of repaying their mortgages.` Howard added that lenders were taking an active role speaking to the FSA to get their views across. He said: `Make no mistake the MMR will cost the lending industry a huge amount of money. And to make these changes, particularly in areas where we feel it ain’t broke, it could be recreating the world here. Without doubt there will be lobbying going on.` Source: Mortgage Introducer Tue, 16 Nov 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1143Fewer Homes Means No ‘let-Up’ In Rising Rentshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1144The buoyancy of the UK rental market continues with over 40% of renters stating they believe rents will be higher in 12 months’ time This is according to results from Rightmove’s latest quarterly Consumer Confidence Survey. Those would-be landlords waiting for their potential investment returns to improve further will be encouraged by the continuing increase in yield of the rental asset class versus other ‘homes’ for their money. However the return of more landlords to buy more property to rent is sorely needed to satisfy the growing housing crisis for those unable to get a mortgage to buy, and also unable to find a home to rent. Miles Shipside, director of Rightmove commented: `For the second consecutive quarter more than 40% of renters are revealing their fears of another upwards movement in rents. They are at the sharp end of competitive demand from other renters, experiencing a struggle to find suitable rental accommodation and losing out on properties to higher bidders. `Rental agents are reporting turning many prospective tenants away, with only those with the best references passing the beauty parade to get to view the limited new stock on offer.` Rightmove’s Quarterly Consumer Confidence Survey first started to track a rising expectation of rent rises 18 months ago in April 2009. Letting agents have been reporting higher rents being achieved upon both tenancy renewals and for new tenant lets. Cases of gazumping are occurring where demand significantly exceeds supply. In spite of over a year of upwards rental pressure, 42% of renters feel that rents will be higher still in another 12 months. While this is slightly down on the 45% forecasting higher rents in Rightmove’s previous survey, 42% expecting further rises provides evidence there are still more rises to come, despite rents having already increased substantially in many locations.The proportion of those expecting rents to be lower in 12 months’ time now stands at just 7%. The upwards price pressure on rents is highlighted by that fact that the stock of available rental properties advertised on the Rightmove website is 23% down year-on-year. Shipside continued: `The momentum for further rises continues, even though some agents are reporting increases of 5% to 10% in the last year already. This is tough news for tenants who have already experienced rent rises prior to this latest report. It looks like there is no let-up in demand from fellow renters.This means another rise upon renewal with your existing landlord or an even larger jump if you enter the open rented market to get one of the increasingly scarce new let opportunities. `The restrictions on ’trapped renters’ remain, with their buying aspirations constrained by the barriers to entry of high deposits and a maze of credit score criteria. There is a shift of two percentage points indicating that the depressed sales market may be giving some renters the opportunity to manage their escape from the rented camp. Over the past year a number of renters may have been able to build up deposits which, combined with the recent fall in house prices, could mean home ownership may be starting to come within reach for some.` Source; Mortgage AdviserWed, 24 Nov 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1144Six In Ten Brits Without Protectionhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1145According to Scottish Provident’s new Financial Safety Net report, 58% of Britons do not have any type of protection in place. The report also shows that 31% would be forced to drastically cut back on living costs should they or the main breadwinner be unable to work for a prolonged period of time. Scottish Provident has launched its Financial Safety Net campaign, to encourage consumers to take action, seek independent financial advice and create their own ‘financial safety net’. The campaign will hopefully raise consumer awareness and understanding of the long term benefits of protection products. Currently 35% of the nation has life cover, but the levels of other protection products are drastically lower. Only 13% have critical illness cover, 9% have income protection and a mere 5% have unemployment benefit – an essential for many in the current economic environment. Many consumers (39%) claim the number one reason for not having any cover was due to it being too expensive; revealing that there is still wide-spread misunderstanding of the various products available and their relative cost – especially as this figure rose to 47% of those with dependents. Worryingly, 17% claim they didn’t know why they don’t have any protection in place for themselves and their family. Source; Mortgage Introducer.Fri, 26 Nov 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1145Rents Hit Two And A Half Year Highhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1146The difference between the number of surveyors reporting rising rents and those seeing declining rents has reached its highest level, at 39%, since Q2 2007 says RICS. The surveyor trade body said rents were pushed up over the three months to October by rising numbers of people looking to rent while the supply of new property onto the rental market dwindled. RICS put this down to the difficulty people were having securing mortgage finance and the high deposits required by lenders. Its member surveyors said the rental market remains buoyant, with properties being let very quickly and landlords experiencing very few voids. The research showed houses are slightly more popular than flats with 33% more surveyors reporting a rise in demand than a fall, the fastest increase in demand since 2008. New landlord instructions - a good indication of supply to the market - slipped further, marking five consecutive quarters of falling instructions. And respondents reported that difficulty in securing Buy-to-let mortgages is holding back many would-be landlords, and a fresh supply of property entering the market. Meanwhile, renewed falls in the sales market saw fewer existing landlords choosing to sell their property at the end of a tenancy agreement. The proportion intending to do so declined from 4.1% in the three months to July to 2.5%, well below the survey average of 4.4%. Across the UK, London saw the biggest increase in rental prices, with a net balance of +86 – the highest number in the series history. A turnaround occurred in the North, where the net balance improved from -3 to +23 but all regions are now recording positive readings. Looking ahead, the outlook for rents over the next three months remains very firm. 34% more surveyors expect rents to rise than fall, with the expectation that rents for houses will increase at a slightly faster rate than for flats. RICS spokesman, Jeremy Leaf, said: `The lettings sector has become increasingly strong over the past nine months, in contrast to the housing market which continues to slow. Many have turned to the rental market because they fear further price reductions in the housing market, or because they cannot obtain the necessary finance to buy. Source: Mortgage Introducer Wed, 01 Dec 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1146Pensioners Are Property Richhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1147Retired homeowners have total property wealth owned outright of up to £769.8 billion despite housing market volatility hitting prices in the past three months, new research from leading independent equity release adviser Key Retirement Solutions shows. Homeowners aged 65-plus lost a collective £5.2 billion in the past three months – equivalent to £832 each – as the continuing squeeze on mortgage availability hit house prices, Key Retirement Solutions’ Pensioner Property Equity Index shows. But there were winners with retired homeowners in the East of England, Scotland and Wales benefiting. Average over-65 homeowners in the East of England gained £2,062 in the past three months while Scots pensioners were £2,544 better off and Welsh over-65s made £45. The biggest losers were over-65 homeowners in London who saw housing equity fall by £2,625 while those in the East Midlands suffered a £2,394 drop. Over-65s homeowners have still seen growth in their total property wealth this year – when Key Retirement launched its index in March over-65s homeowners had total equity of £765.18 billion. Key Retirement’s figures show nearly a third of property equity is owned by pensioners in London and the South East of England – in London over-65s own property without any mortgages worth £124.4 billion while in the South East pensioners own £123.8 billion of property without mortgages. Dean Mirfin, group director at Key Retirement Solutions, said: `It is almost impossible to call the trend in the property market currently with the lack of mortgage availability making it very difficult for buyers. `However it is clear the over-65s own considerable property wealth which represents a massive investment success as they no longer have mortgages and will in most cases have bought more than 25 years ago Source: Mortgage Introducer Wed, 08 Dec 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1147House Prices – Conflicting Surveyshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1148Conflicting house price indices have been published, one showing that house prices fell 0.1% in November, and the other claiming that they went up for a seventh consecutive month. House prices dipped negligibly in November, the Halifax has reported. It means that house prices are now 0.7% down on a year ago, although 6.5% higher than at the trough of the market, in April 2009. However, according to the LSL Acadametrics report, published this morning, house prices went up 0.2% in November, meaning that house prices are up 5.9% on a year ago. The report said that all regions in England and Wales are seeing house price growth. According to Halifax, the average house price is now £164,708. According to Acadametrics, it is now £224,958. Meanwhile, the percentage of first-time buyers fell from 23% to 19% in November, the National Association of Estate Agents reported. The NAEA said the figure `could give some cause for concern`.? It said that first-time buyers were a crucial segment of the market and more needed to be done to encourage lenders to loosen their restrictive mortgage criteria, to allow responsible borrowers to purchase property. Source; EATFri, 10 Dec 2010 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1148Ftb Mortgage Affordability At 12 Year Highhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1149Mortgage affordability for those looking to take their first steps onto the property ladder is at its most favourable for 12 years. This is according to the latest annual Halifax First Time Buyer Review, which showed the proportion of disposable earnings devoted to mortgage payments by a potential new first time buyer stood at 27% in September 2010. This is the lowest since December 1998 and almost half of the peak level of 50% in September 2007. According to Halifax, this significant improvement in affordability over the past three years has been mainly driven by a combination of lower house prices and declining mortgage rates. The data shows that in 2010 40% of local authority districts (LAD) across the UK were ‘affordable’ for the average first time purchaser. This is a considerable improvement from 2007 when only 6% of areas were affordable, although this is less than half the proportion of the affordable LADs in 2000 (82%). The North East is the most affordable region in the UK for first time buyers; 83% of local authority districts here are affordable to FTBs, more than in any other region. Only 5% of first time buyers paid stamp duty between April and November 2010 as a result of the temporary increase in the stamp duty threshold for FTBs from £125,000 to £250,000 announced in March. Nationally, 39% of home purchases made by FTBs have benefited from the increased allowance. First time buyers in the South East have benefited most from the change, with almost three quarters (73%) not paying stamp duty due to the increase. Commenting, Martin Ellis, housing economist at Halifax, said: "The `noughties` were a difficult period for many looking to get onto the property ladder. `The substantial rise in house prices over much of the decade prevented many potential first time buyers from entering the market, however, affordability has improved significantly over the past three years. `Whilst the tightening in lending criteria experienced across the mortgage industry since the onset of the credit crunch in 2007 deterred first-buyers from trying to secure mortgage finance, there are now encouraging signs of a modest improvement in mortgage availability". Source: Mortgage IntroducerTue, 04 Jan 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1149Base Rate Held At 0.5 Per Centhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1150The Bank base rate is on hold at 0.5% for the 22nd consecutive month after the Bank of England’s Monetary Policy Committee voted this morning. The MPC also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. Paul Hunt, managing director of Phoebus Software, said: `The MPC does not need to tinker with the Bank Rate because the current level is entirely fit for purpose. There’s no need to lower rates further now as the fears of a double dip have receded so far but neither should we raise them in a knee-jerk reaction to stamp on inflation.` Barry Naisbitt, chief economist at Santander UK, said the minutes for today’s meeting would be revealing. `With inflation still well above its target, and expected to rise even further in the coming months after the VAT increase, it will be interesting to see if the members have changed their concerns about the economic risks,` he said. Inflation measured by the consumer prices index was at or above 3% throughout 2010, consistently above the Bank’s inflation target of 2%. In its most recent forecast in November 2010, the Bank said it expects inflation to say above 3% for the rest of 2011 before falling back to 2% at the start of 2012 when the recent VAT rise from 17.5% to 20% falls out of the calculation. Christina Weisz, a director of foreign exchange specialists, Currency Solutions, said: "Despite the continuing problems with inflation figures any potential interest rate rise to counteract the inflationary problem that the Bank of England faces is complicated by the ongoing introduction of budget cuts, austerity measures, the VAT rise and threat of rising unemployment. All of these have prevented a clearer picture of economic growth to come to the fore.` Ian McCafferty, CBI Chief Economic Adviser, said: `The Bank is grappling with the need to balance the two conflicting issues of inflation and growth. While this hold announcement is not a surprise, decisions in the coming months will be more difficult as the Bank’s anti-inflation credibility comes under greater pressure. `If current economic trends continue, we expect the MPC to respond both in the tone of its commentary and by nudging interest rates higher before mid-year.` And Simon Gammon, head of Knight Frank Finance, said: `This morning’s decision to keep the base rate on hold at 0.5% for the 22nd month running was very much as expected, but the pressure for an increase is starting to mount. "Uncertainty about what will happen to interest rates is driving people to consider their options, especially with regards to their mortgages. With fixed rates now starting to edge up, now is a good time to review your borrowing.` Source; Mortgage Introducer Thu, 13 Jan 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1150House Prices Almost Double In Ten Yearshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1151UK house prices have risen by 91% over the past ten years, according to new research by Halifax. Based on Halifax`s own data, the national average price rose by over £78,000 (91%) from £86,095 in late 2000 to £164,310 at the end of 2010. The current housing market cycle saw the average house price in the UK increase by 132% between 2000Q4 and the market peak of £199,766 in 2007Q3. This was followed by a 21% drop to £157,767 in 2009 quarter 2. As the market has stabilised prices have subsequently increased by 4% to £164,310 at the end of 2010, a level similar to the end of 2005. The North-South house price divide has narrowed over the past 10 years but shows signs of returning. House price growth in the North outperformed the South over the past decade, rising by an average of 102% compared with 75% in the South. As a result, the average house price in the regions across the South (£206,091) is now 56% higher than in the North (£132,163). Ten years ago prices in the South were, on average 80% higher than in the North However, there are signs that this regional pattern is reversing with the north south divide beginning to widen again. Between 2005 and 2010, the South East experienced the biggest price increases on the UK mainland (4%) while the North recorded the largest fall (-10%). Suren Thiru, Halifax housing economist, commented: "The turn of this century marked the start of a period of strong house price growth across the UK. `The traditional home of price gains, the South, was left behind by strong growth in the North where house prices more than doubled over the period. However, recently, there has been a slight reversal of this trend with housing market in the south of England outperforming the rest of the country over the past few years." Mon, 31 Jan 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1151Fixed Mortgage Rates At 6-Month Highhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1152Average fixed rates today stand at their highest level in six months as lenders pass on rising funding costs to borrowers. The cost to lenders of raising funding on the swap rate market has soared in recent months. At the end of November, the two-year swap rate stood at 1.35%, today it stands at 1.98% - 47% higher. Commenting, Michelle Slade, spokesperson for Moneyfacts.co.uk, said: "Fixed mortgage rates continue to rise as lenders pass on the higher cost of funding to borrowers. "The majority of lenders have increased rates since the start of the year, with some mortgage deals seeing rate rises of more than 0.50%. "Borrowers who have delayed the decision to commit to a new deal will now find themselves having to pay higher monthly payments. "On a mortgage of £150,000, a 0.50% increase in rate would add £42 per month to a borrower`s repayments. "With no signs of swap rates starting to fall, the likelihood is that mortgage rates will rise further. "While the rise in swap rates is a headache for borrowers, it`s providing a boost for savers. "Lenders are looking at inhouse sources of funding for mortgages and have increased savings rates in a bid to attract higher levels of deposits. "Recent reports are suggesting that a base rate rise could happen sooner than previously thought. "Any rise in base rate would push mortgage rates higher, so borrowers looking to fix their repayments should act sooner rather than later." Source; Mortgage IntroducerWed, 09 Feb 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1152Bank Holds Rates Despite Inflation Threathttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1153The Bank of England held rates for the 23rd month in a row today despite fears of inflation reaching a two-year high. The decision to leave the Base Rate unchanged at 0.50% for the 23rd consecutive month does not come as a huge surprise. Whilst concerns around inflation persist, the economy still remains in a relatively fragile state and the members of the MPC are clearly worried that any increase could snuff out the economic recovery. Ian Long, managing director of St Trinity Asset Management, said: `The sharp – and welcome – fall in repossessions has been driven by historically low interest rates throughout 2010. "The MPC’s cautious policy has kept thousands of homeowners’ mortgage payments artificially low, cushioning the effects of increasing inflation and the change in many borrowers’ financial situations since the recession. "Today’s decision to hold rates will provide a further stay of execution for many households, allowing thousands to get their finances into shape before they face higher payments when interest rates are eventually hiked. While the Government`s austerity measures, due to be implemented over the coming months, could help mitigate some of the inflation risk, the MPC members seem to have taken this into consideration and are holding back for the moment. This news will be welcomed by the many borrowers benefiting from historically low variable rates. Fri, 11 Feb 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1153Fall In Repossessions And Arrearshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1154The Council of Mortgage Lenders today revealed that, at 36,300, the number of repossessions by first-charge mortgage lenders in 2010 accounted for just 0.3% of all mortgages The number was 24% lower than in 2009, while the number of mortgages ending 2010 with arrears of 2.5% or more of the outstanding balance also fell by 13% on the previous year-end, standing at 169,600 (1.49% of all loans). During the fourth quarter, the number of repossessions was 7,900 (down 11% from 8,900 in the third quarter, and down 26% on the 10,700 in the same period a year ago). This was the fifth consecutive quarterly decline in repossessions. On arrears, the 1.49% of mortgages with 2.5% or more of arrears at the end of the fourth quarter was the lowest share since the third quarter of 2008 (1.29%). It compared with 176,100 (1.55%) arrears cases at the end of September, and 196,000 (1.72%) at the end of 2009. Overall, the latest data was broadly in line with the CML`s most recent forecasts for the 2010 outturn of 175,000 arrears cases and 36,000 repossessions. The CML continues to expect a 2011 outturn of 40,000 repossessions and 180,000 mortgages in arrears. However, uncertainties clearly remain not only if interest rates rise, but also because of recent developments such as the reduction in the rate at which Support for Mortgage Interest is paid (down from 6.08% to 3.63%), the impact of changes to the court process in possession cases in the courts in Scotland, and the reduction in the price that will be paid for properties acquired under the mortgage rescue scheme delivered through local authorities. The CML will be monitoring developments closely. CML director general Michael Coogan commented: "Lenders are continuing to work hard to help their borrowers who face temporary financial difficulties. Anyone who is worried about being unable to pay their mortgage should contact their lender and seek advice at an early stage from Citizens Advice, Shelter, National Debtline or other local advice agencies. `This helps to prevent problems escalating and becoming more difficult to resolve. As the numbers clearly demonstrate, repossession is a last resort. Most people`s payment difficulties can be managed and controlled for a period until their circumstances improve. "As we go through 2011, the number of people facing payment pressures may increase if interest rates rise, and as a result of the spending cuts that have resulted in reductions in the level of public support available. `We will be monitoring developments closely, but at present we continue to expect the number of arrears and repossessions to be in line with our forecasts of 40,000 repossessions and 180,000 arrears cases as at the end of 2011." Source: Mortgage IntroducerMon, 14 Feb 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1154`We Got It Wrong On Housing`, Labour Admitshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1155All three main political parties appear to be acknowledging that they are completely at sea over the housing market. Civil servants in the Communities and Local Government department are to carry out a review of the private housing market, whilst Labour is also to carry out one of its own after admitting that it failed the market during its administration. The Coalition Government review will be led not by housing minister Grant Shapps but by Oliver Letwin. A CLG adviser confirmed that housing policy is being reviewed, but did not say which policies are being looked at. Richard Capie, deputy chief executive of the Chartered Institute of Housing, told ‘Inside Housing’ magazine that he understands the review is looking at house building and the state of the housing market. `With housing markets in such a fragile state, it is positive news that the Government is willing to look in detail at what are fundamental and systemic problems,` he said. Meanwhile, not to be outdone, Labour`s review of the housing market is to be led by Caroline Flint, shadow CLG secretary and – briefly – one of Labour’s many former housing ministers. Labour’s review is to be called ‘How do we meet families’ aspirations for good housing and a good home?’ The year-long review will examine all aspects of housing and housing benefit policy, but it has not been made known whether it will look at the Home Information Packs shambles. Labour`s review comes as shadow welfare secretary Liam Byrne has admitted the Labour government failed the housing sector while in power. Byrne, who will work on the review, said: `We just do not think we did a good enough job on housing.` Other members of the panel include shadow housing minister Alison Seabeck. Interim results are due this summer. Mon, 14 Feb 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1155House Prices Increased By 3.8 Per Cent Over Yearhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1156In December UK house prices increased by 3.8% over the year and increased by 0.5% over the month, according to the UK house price index produced by the Department for Communities and Local Government. The statistics include data based on mortgage completions during the month of December 2010. The figures show: The average mix-adjusted UK house price was £208,148 (not seasonally adjusted). Average house prices were 0.4% lower over the quarter to December, compared to a quarterly increase of 0.2% over the quarter to September (seasonally adjusted). Average prices increased during the year in England (4.1%), Wales (4.3%) and Scotland (1.8%), but were lower in Northern Ireland (-16.1%). Prices paid by first-time buyers were 1.4% higher on average than a year earlier whilst prices paid by former owner occupiers increased by 4.7%. Prices for new properties were 7.6% higher on average than a year earlier whilst prices for pre-owned dwellings increased by 3.5%. Source; Mortgage IntroducerWed, 16 Feb 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1156First-Time Buyers Key To Housing Markethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1157Both the Building Societies Association and the Council of Mortgage Lenders have reiterated the importance of the first-time buyer to the housing market. Both industry bodies represented the mortgage, housing, insurance and charitable sectors at the first-time buyer industry summit yesterday chaired by Housing Minister, Grant Shapps. Paul Broadhead, BSA head of mortgage policy, took the opportunity to re-iterate it is not merely the shortage of mortgage funding that is causing difficulties in the housing market for first-time buyers. Broadhead commented: "There have been increasing affordability issues in recent years as house prices outstripped earnings growth. There are also demand side factors to consider such as volatile house prices and job insecurity which continue to make potential first-time buyers nervous. Any initiatives focussed purely on first-time buyers, without a sufficient increase in house building, could push prices up for entry level properties; particularly if second-time movers have low or negative equity. `Funding, both the availability and cost of it, continues to cause difficulty for mortgage lenders. As does the increased cost of lending at higher LTVs (through new capital requirements)." The BSA believes that the meeting could be the start of a process that re-examines and re-evaluates the housing market and that bringing industry and government bodies together in one room has kick started the process. It urged caution, however, against the meeting being viewed as an immediate solution to all the issues faced by first time buyers. CML director general Michael Coogan agreed: "It is good to see Ministers taking the initiative to discuss how we can look to improve market conditions for first-time buyers. But no-one will be surprised to learn that there is no simple quick fix for a market that has changed fundamentally since the credit crunch. `Creative approaches have a role to play in helping to turn market stability into market recovery, and lenders look forward to working constructively both with government and the housebuilding industry as we look to help create the kind of conditions conducive to responsible innovation." Source; Mortgage IntroducerWed, 16 Feb 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1157Higher Ltv Mortgages Returning To The Markethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1158The mortgage market has seen a gradual increase in the number of products offering higher loan-to-values providing some relief to borrowers with limited deposits. According to Moneyfacts, in February 2011 there were 214 deals with a 90% LTV and 560 with a 85% LTV, out of 2811 products. This is in comparison with 185 deals with a 90% LTV and 454 deals with a 85% LTV, out of 2438 products, in August 2010. In February 2010 there were 1971 mortgages available, with 144 requiring a 10% deposit and 310 requiring a 15% deposit. Louise Holmes, spokesperson for Moneyfacts.co.uk, commented: `Higher loan-to-value mortgages are making a steady return to the mortgage market. This will be welcome news to borrowers with small deposits, particularly first time buyers who have struggled to find products which meet their needs. `Lenders became risk averse during the height of the credit crunch by withdrawing their higher loan-to-value mortgage products. Over recent months some lenders have increased their rates and expanded their number of higher loan-to-value deals, giving indications that the market could be returning to a competitive, rather than risk-based state Thu, 17 Feb 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1158Interest Rate Rises No Major Impacthttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1159Potential interest rate rises are not expected to have a major impact on landlords. Buy-to let landlords may be lucky enough to avoid being hurt by interest rises, according to one property expert. Independent property industry expert Malcolm Harrison said that should the Bank of England choose to increase interest rates, buy-to-let landlords will probably remain unaffected as the base rate is so low to begin with. He noted it is unlikely that there will be a "vast jump" in rates. "At the moment, we have such a low base anyway and I don`t think anybody is expecting interest rates to go back to where they were," he said. Commenting on the letting market in general, Mr Harrison observed that it used to be quite common for buy-to-let landlords to be on fixed-rate mortgages but as interest rates fell, they switched to tracker deals to save cash. Recent figures from the Council of Mortgage Lenders revealed that the letting market grew by seven per cent last year. Fri, 25 Feb 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1159First Time Buyers Need Helphttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1160MPs believe first time buyers need help Three quarters of MPs believe that people with a stable income but without access to a large deposit should have access to mortgage finance. A survey commissioned by Genworth Financial has found that a significant majority of MPs believe more must be done to help first time buyers. 83% stated that their constituents need more support, rising to 100% of those with constituencies in London. Around 75% of those questioned by ComRes in January this year are told by constituents that it is impossible to get on the housing ladder, with those based in London disproportionately affected. This echoes the findings of Genworth’s ‘Barriers to Home Ownership Report’ issued towards the end of last year, which highlighted the ‘lost generation’ of homebuyers by quantifying that, every year since 2007 around 100,000 first time buyers have been excluded from accessing home ownership. The current difficulties faced by first time buyers are clearly seen as a real concern for MPs, with 77% believing that home ownership - for those who can afford it - is an important policy goal. This feeling was particularly strong amongst Conservative MPs (92%). Interestingly, the sentiment was lowest among London MPs (67%), perhaps indicating that home ownership is so far out of reach for many in the capital that other solutions need to be examined instead. Looking towards the wider impact that the housing market has on the economy, more than four in five (84%) of the MPs questioned agreed that a more fluid housing market, stimulated by easier access for first time buyers, would help the overall financial situation and social mobility of their constituents. To this end, 75% stated that people with a stable income, but without the savings to put up a deposit of 10-20%, should have access to mortgage finance provided repayments are affordable. These results reflect the concerns shared at the ‘emergency summit’ on first time buyers chaired by housing minister Grant Shapps on 15th February with a number of solutions discussed by industry stakeholders including Genworth Financial. Angel Mas, president of Mortgage insurance for Genworth Financial in Europe, commented: `The deposit remains the biggest barrier to homeownership in the UK, along with the prudent approach taken by lenders, who are allocating their scarce capital to other segments of the mortgage market. `The return of high loan-to-value lending is vital if we are to unlock the market for those with a sound credit profile, but who are unable to save for a deposit in the near term. Lenders can participate safely in the high LTV segment by transferring default risk to a specialist insurer. This model creates additional safeguards for the overall system as insurers will only accept this risk if appropriate lending criteria are applied and monitored. `We welcome the renewed focus on first time buyers and call upon policymakers to create the right incentives, through reduced capital requirements for those lenders taking a prudent approach by mitigating their default risk with mortgage insurance. `This framework already exists in a number of other major economies which have withstood the economic crisis, with the flow of credit to prime first time buyers remaining open through the cycle. The urgency of this situation should point towards their example rather than looking for new and untested solutions.` Source; Mortgage Introducer Thu, 10 Mar 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1160Bank Holds Rates Again - Still 0.5 Per Centhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1161The Bank of England’s Monetary Policy Committee today voted to maintain its 0.5% base rate for the 24th month in a row. The previous change in Bank Rate was a reduction of 0.5 percentage points to 0.5% on 5 March 2009. Had rates increased millions of borrowers would immediately have fallen under the cosh. The average monthly payment on a £110,000 repayment mortgage at 3.50% is £556. Even a small 0.25% rate rise would add £15.20 to monthly repayments. And borrowers on interest only mortgage deals would see their payments rise £22.92 – from £320.83 to £343.75 per month. Jonathan Cornell, head of communications at First Active Finance, said although it was highly unlikely that the MPC was going to do anything other than keep the base rate on hold but warned that we are getting closer and closer to an increase. He said: `Most experts predicting that the earliest we will see a rise is May which will coincide with the next quarterly in inflation report. The minutes for this meeting will be available on 23rd March and they will make fascinating reading. `The stick on SVR or twist onto a fixed rate debate has been raging furiously. Borrowers should take into account their current lender’s previous track record with base rate cuts and increases. Not every lender passed on all the cuts and there is a lengthy list of shame of those lenders which previously increased their SVRs by more than the base rate increases. Those who don’t believe rates will rise significantly in the medium term should consider tracker rates as this removes the risk of SVR padding.` And Richard Barker, mortgage manager at N&P, added: `Today’s decision to leave the Base Rate unchanged at 0.50% for the 24th consecutive month was largely expected within the markets and does not come as a huge surprise. `Support for a base rate increase has been gathering momentum over the last few months in light of significant inflationary pressure, with three members of the MPC voting for a rate increase in February and other economic commentators also calling for an increase, but the relative fragility of the economy and weakness of the recovery is likely to have influenced the decision of the majority of the MPC members. `Many economists anticipate that the first rise in Base Rate could now occur in May following the release of various economic data for the first quarter of the year. So for the moment, those on a variable rate or tracker mortgage have a little bit more time to consider their options.` Source; Mortgage Introducer Thu, 10 Mar 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1161Budget 2011: First-Time Buyer Boosthttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1162Ten thousand first-time buyers will benefit from yesterday`s Budget with the Chancellor announcing a £250 million shared equity scheme to help them raise up to 20% of the value of a new build home. Couples with a joint income of less than £60,000 and a 5% deposit will be eligible to apply to the Department of Communities and Local Government and house builders for a top-up low interest loan worth 20% of the property value. The loans are interest-free for five years and then charge around 1.75%, rising by 1% above inflation each subsequent year. Osborne is reported to hope the move will support 40,000 construction jobs as well as provide access to homeownership for hopeful first-time buyers. Charles Haresnape, managing director of residential mortgages at Aldermore, said: `It`s good to see the government acknowledge the plight of first-time buyers, but the scheme announced in the budget is more of a political gesture than a serious attempt to help hard-pressed home buyers. `Last year, there were 194,600 first-time buyers - a dramatic reduction from 568,200 in 2001. The government`s proposed scheme will help just 10,000 first-time buyers get a foot on the property ladder. It`s better than nothing, but we shouldn`t fool ourselves into thinking that by itself this scheme will kick-start the first-time buyer market into action once again." Source: Mortgage IntroducerThu, 24 Mar 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1162Bank Calls For Stamp Duty To Be Paid By Sellers, Not Buyershttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1163A new and permanent reform of stamp duty would mean that the tax would be paid by sellers and not buyers. The call for reform has come from HSBC which found that 85% of non home-owning young adults (18 to 34-years-old) want to own their own home, but only 19% of the 85% expect to be able to do so within the next five years. And almost half – 45% of aspiring home-owners – do not ever expect to be able to purchase. In its report, First Time Buyers: Roadblocks and Ways Forward, HSBC found that the younger, 18 to 24-year-old age group was the more optimistic. Around 22% expect to purchase within five years. However, 21% do not expect ever to be able to purchase. For each of the past three years there have been around 200,000 first-time buyers, according to the Council of Mortgage Lenders. This is less than half of the 400,000 to 500,000 of those recorded in more typical market conditions, before the credit crunch hit. The key reasons holding aspiring home owners back from house purchase are: 69% cited `raising the required deposit` 59% cited `insufficient income to support the mortgage.` 27% said `concerns over unemployment` 12% said `concern over future falling house prices` The current average FTB house price of £136,842 is 6.6 times a young single person’s average earnings of £20,654 (source: Nationwide Building Society and National Earnings Survey). In order to afford a 90% LTV mortgage, a typical FTB would need to earn £30,800 – 49% higher than current average earnings for a single young adult. Even then, a 10% deposit of £13,684 is equivalent to 42% of this higher annual income, a major impediment to home purchase without external financial assistance. It is therefore not surprising that 84% of young FTBs are buying with assistance, mostly from parents. This compares to 38% in 2005, according to the CML. Stuart Beattie, HSBC’s head of mortgages, said: `Our study proves that the aspiration to be a home owner continues to be exceptionally strong. Over 80% of young non-home owners are aspiring to buy a home but are being prevented from doing so due to lack of affordable homes. `The key to helping buyers back into the market is to help them obtain the cash deposit that responsible lenders require before granting a mortgage. `To this end, both government and private sector interested parties need to come up with innovative schemes to help aspiring FTBs.` The report says that government-supported initiatives have helped around 22,000 FTBs a year in each of the last three years. HSBC is also suggesting that Stamp Duty should be applied to sales, not purchases. This would mean that FTBs would be excused it when the £250,000 stamp duty holiday ends next March. The bank also suggests that 95% mortgage lending could be deemed prudent, if it could be backed by insurance to cover both lenders and borrowers. Source: EATWed, 06 Apr 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1163Base Rate Held At 0.5 Per Centhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1164The Bank base rate is on hold at 0.5% for the 25th consecutive month after the Bank of England’s Monetary Policy Committee voted this morning. The MPC also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200 billion. The decision to hold the rate was widely expected after the Office for Budgetary Responsibility cut its growth forecast for 2011 from 2.1% to 1.7% in last month’s Budget. Some commentators argued for an incremental rise in the base rate to combat inflation which, at 4.4% in February, is more than double the MPC’s target. The March MPC minutes also revealed a four-way split in opinion with the most hawkish member Andrew Sentance arguing for a 0.5% rise, Spencer Dale and Martin Weale calling for a 0.25% rise, Adam Posen – the most dovish – arguing for further quantitative easing, while the remaining five wanted and got a hold. Jeff Quilter, director of strategy at HML, said: "Consumers with variable rate mortgages will welcome at least another month of grace from an interest rate rise but the Bank of England is caught between a rock and a hard place. If it increases interest rates to combat inflation levels then variable rate and tracker mortgage holders will feel the knock-on effect and their finances will face another squeeze at a time when wages have dropped in real terms. If rates stay on hold then it is possible that inflation will continue the current trend moving further away from the Government`s 2% target and falling further out of sync with wages." Ben Thompson, managing director of Legal & General Mortgage Club, said: "Until it becomes explicitly demonstrable that a sustained economic recovery is well underway, we expect the MPC to ignore inflationary pressures for as long as it can and carry on in stimulus mode. We remain of the view that rates will rise in small steps when they go, they won`t rise by much and it is possible that this might not happen until later in the year." And Jonathan Samuels, chief executive of Dragonfly Property Finance, added: "When rate rises do come they have to be implemented at a pace that does as little damage as possible to consumers and business.The property market will be especially vulnerable. While demand for property among professional investors is still robust, among owner-occupiers it remains weak. A rate rise will result in even more buyer caution, placing additional downward pressure on prices." Thu, 07 Apr 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1164How Inflation Affects Buy-To-Let Investorshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1165Last week consumer price inflation in Britain fell to 4% in the year to March, but what are the implications for buy-to-let investors? Nick Carlile had this to say on the subject. `From an investor’s point of view, how much impact inflation has, really depends on how much actual cash you have to play with and whether you can afford the squeeze on your finances that an inflation rise implies,` he said. `When inflation rises it means that not only does the everyday cost of living increase, but all the goods and services you buy when developing a property to sell on or rent out, also become more expensive. These can include plumbers, surveyors, electricians and solicitors as well as paint, flooring and furniture. If rates were to rise on top of this, it’s easy to see how investor profit margins get squeezed from all directions Two important factors to consider when working out a property’s investment potential and how inflation rise and falls will affect you, are factoring in rising rental incomes if you’re investing for buy-to-let, and of course, purchasing the property at the best possible price. Inflation, simply defined, is the erosion in the purchasing power of money. Nick continued: `The interesting thing about property investing is that over time it offers some protection against inflation. Because many buy-to-let property investors have borrowed money to invest in a real asset, they are letting the bank’s money erode in value while they, in exchange, have a real asset in their investment property that should retain or grow in value over a period of time. `With falling inflation and continued low interest rates the outlook seems bright, even for those considering dipping a toe in the property investment market for the first time.` Source: Mortgage Introducer.Mon, 18 Apr 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1165Buying Proves Cheaper Than Rentinghttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1166The dramatic fall in mortgage rates that the UK has experienced over the last three years means that it is now cheaper to buy a home than it is to rent, according to research from Britain`s biggest lender, Halifax. The Telgraph reported that an average three bedroom home costs £608 per month in mortgage payments compared to £709 in rent. This is compared to March 2008, when it cost £1060 to pay the mortgage and just £761 to rent. Mortgage rates have, in fact, fallen by over 2 per cent of the value of the home since 2008, from 5.82 per cent to 3.59 per cent today. Susen Thiru, housing economist at Halifax, said: "Such a marked decline in mortgage costs has improved affordability for those able to enter the market as well as helping to ease the pressure on existing homeowners` disposable income. "Although the current trade-off between buying and renting is expected to narrow when interest rates start to narrow again, the long-term benefits associated with investing in bricks and mortar are likely to ensure that buying will continue to be viewed favourably by many." Yet despite the low mortgage rates, high-street lenders continue to impose rigid and strict lending criteria, which may be linked, in part to a higher rate of national unemployment. And it seems that this strict lending criteria is getting worse, with Halifax, RBS and Coventry Building Society all placing new `criteria` on their interest-only mortgages. Source; Mortgage IntroducerTue, 26 Apr 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1166Sellers Return To Test The Housing Markethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1167Supply of property increased during April, as sellers returned to the test the Spring housing market. This is according to the latest RICS UK Housing Market survey which shows that 18% more chartered surveyors reported a rise rather than fall in new instructions, up from 4% more in March. Spring is traditionally a busier time of year, but respondents suggest that a stablisation in property prices has also tempted many back. Demand also showed signs of steadying, with new buyer enquiries moving to a net balance of 0% and taking the series out of negative territory for the first time in ten months. During April, respondents noted that the good weather led to increased numbers of viewings from potential buyers in some parts of the UK. Despite this, surveyors continue to report that a lack of mortgage finance is hindering many, with only the cash-rich able to really take advantage of the market. Significantly, average sales per surveyor over the past three months rose to 15.2, the best level since December. Alongside this, newly agreed sales also edged up in April, as 8% more surveyors reported increases not falls in agreed sales, taking the series to its best level for a year. The picture remains more downbeat for house prices, in part due to the continued imbalance between demand and supply. Around 21% more surveyors reported prices fell rather than rose in April, but this is the best level since June last year. Similarly, surveyors` expectations for prices over the next three months remain in negative territory, at a net balance of -18, also taking the series to June 2010 levels. Looking ahead, 11% more surveyors predict sales to increase rather than decrease over the next three months. Commenting, RICS housing spokesperson, Michael Newey, said: "The return of sellers to the market is positive, but activity still remains subdued and it is difficult to see it picking up materially over the coming months. `Although there are signs that some lenders may be reducing their grip on the purse strings, in particular with mortgages aimed at first-time buyers, there is still a long way to go before lending levels increase enough to have any real impact. Economic uncertainty may also continue to weigh on sentiment for a while to come." Source; Mortgage Introducer Wed, 11 May 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1167More Than One In Five Households To Rent Privatelyhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1168More that one in five households will rent privately by the year 2020, signalling enormous growth in the private rented sector in the first two decades of this century. In 2001, a study by the University of York found that the private rented sector housed just over one in ten (10.6%) of households in the UK. By 2009/10, according to the English Housing Report, the proportion had swelled to one in six households (15.6%) – a growth of one million more households in private rented accommodation since 2005/2006. The latest projection comes from buy-to-let lending specialist Paragon, which estimates that the private rented sector is worth £500bn – more than the entire UK commercial property sector. Its new ‘white paper’ argues that the private rented sector (PRS) is becoming a tenure of choice: 3.4 million households now live in rented accommodation, an increase of 1.4 million (70%) since 2001. The report also argues that decline in social housing over the past 20 years means that the PRS is now the only real alternative to home ownership. It has also become, for some investors, an alternative to buying stocks and shares. There are currently 1.3 million buy-to-let mortgages in the UK, with a total value of £152bn, says Paragon. But, while buy-to-let lending increased by 22% to £10.4bn in 2010, it is still well below its 2007 high of £44.6bn. One difficulty is funding: there are now just 330 buy-to-let mortgage products compared to some 3,500 in July 2007. Yet the private rented sector is the only way that many people can provide a roof over their heads. `The current economic environment is placing severe pressure on the PRS, with rising levels of tenant demand outstripping the number of properties available for rent,` says the report. `Department for Communities and Local Government (CLG) figures show a dramatic rise of 300,000 in the number of PRS households between 2009 and 2010 alone, something which is leading to ongoing rental inflation. A recent RICS Residential Lettings Survey showed that the rate of rental growth is at an all-time high. `Social change will drive much of the increase in demand. The number of UK households is forecast to grow by 6.3 million to 27.8 million by 2031, the equivalent of 252,000 new households every year. UK population growth, net migration, growing numbers of single-person households, people starting families later in life and an increase in the age of first-time buyers are all increasing long-term demand for rental properties. `Key to the continued growth of the PRS is the availability of finance for landlords in the form of buy-to-let mortgages.` Commenting on the report, Nigel Terrington, CEO of Paragon, said: `The private rented sector is likely to expand significantly over the next decade, and is set to overtake social housing to become the UK’s second-largest housing tenure, after owner-occupied. `For that to happen, a vibrant and healthy buy-to-let mortgage market is vital, and the Government must foster a regulatory environment that encourages investment by landlords, thereby allowing an efficient private sector solution to the housing challenge facing the UK in the years ahead.` Tue, 17 May 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1168House Prices Rose In March Says Clghttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1169In March UK house prices increased by 0.9% over the year and increased by 1.2% over the month. This is according to Communities and Local Government data which also showed the average mix-adjusted UK house price was £205,565 in March. Average house prices were 0.5% lower over the quarter to March, compared to a quarterly decrease of 0.4% over the quarter to December. Average prices increased during the year in England (1.3%) but decreased in Scotland (-0.7%), Wales (-2.5%) and Northern Ireland (-13.9%) Prices paid by first time buyers were 0.3% lower on average than a year earlier and prices paid by former owner occupiers increased by 1.4%. Average house prices increased in four of the nine English regions over the year to March 2011. The largest increase was in London (5.6%) and the smallest was in the East Midlands (0.9%). The North East saw the largest annual fall (-5.3%). The average price for properties bought by first time buyers decreased by 0.3% to £150,011 over the year to March 2011, compared to an annual increase of 0.5% in February. During March prices paid by first time buyers did not change over the month, compared to a 0.7% monthly increase in March last year. The average price of properties bought by former owner occupiers increased by 1.4% to £239,813 over the year to March 2011, compared to an annual increase of 0.5% in February. During March prices paid by former owner occupiers rose by 1.6% on average, compared to a 0.4% increase in March last year. Nicholas Ayre, director, UK buying agent Home Fusion, said: "There is neither rhyme nor reason to the property market at present. "Against a still grim economic backdrop, prices overall, according to this latest data, have risen over the past month and year respectively. "What the CLG data underlines categorically is the stark regional variations in prices. "Prices in London, where supply is tight and demand relatively strong, are the polar opposite to those in Wales and Northern Ireland. "The property market, very clearly, has fragmented into a series of micro-markets. It could be many years before we see the return of a property market that trends at a national level." Tue, 17 May 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1169Student Lettings Best Investmenthttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1170Regional student letting accommodation is the best-performing property investment asset in the UK, says a new report by Knight Frank. It says that regional student accommodation outperformed all other property assets.It puts total returns for regional student accommodation at 14.65% last year. While student rents outside London went up by 4.1% last year, in London they fell by 3.6% – despite a huge shortfall in accommodation. The report predicts that demand will increase as students abandon gap years and rush to beat rises in fees due to kick in from September 2012. The latest application figures from UCAS show a 7.7% increase from non-EU students. There has been record applications for university places this year. students will find there is an under-supply of student accommodation to meet their needs. The student accommodation sector is now recognised as forming a critical component of a balanced investment portfolio. Total returns in 2010 for student accommodation in the regions outperformed all other property sector, Thu, 19 May 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1170Urgent Reform Of Housing Market Neededhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1171The Joseph Rowntree Foundation (JRF) has called for urgent and fundamental reform of the housing market after the failure of policy-makers to learn the lessons from previous boom and bust cycles, which have led to the UK having one of the most persistently volatile housing markets in the world. Convened by JRF in 2009 and consisting of interdisciplinary experts, the JRF Housing Market Taskforce has undertaken a system-wide review of the UK`s housing market. Its report recommends a series of policy options that together would help create a more stable housing market, to protect existing home owners and enable more new households to get onto the property ladder. Recommendations to help reduce house price volatility include: * An increase in the supply of housing Supply is central to managing house price volatility. The scale of the increase required, however, means that this alone will not reduce volatility in the market. * The reform of both Stamp Duty and Council Tax These existing taxation tools could help to reduce house price volatility in the shorter term. Both Stamp Duty and Council Tax should be linked to the real value of a property and regularly updated. Stamp Duty: The current `slab` structure of stamp duty should be replaced with a `slice` structure whereby only the value that exceeds the threshold is taxed or taxed at a higher rate (similar to income tax). Thresholds should be uprated regularly in line with consumer price inflation. Council Tax: In the short-term, the number of bands should be extended. In the medium term, there should be a move towards a system based on a fixed percentage of a property`s value. In the long-term a national property tax could be created with safeguards for low-income households. A better safety net for homeowners based on shared responsibility between lenders, borrowers and Government is also called for.The current safety net for homeowners is inadequate and has required extensive Government intervention during downturns. Lenders also need to lend responsibly, achieving the right balance between access to mortgages and the risk of default.Active steps need to be taken to improve borrowers` financial capability to ensure they have sufficient information and skills to make informed choices about what they can afford. A partnership insurance model with contributions from borrowers, lenders and government should also be adopted to meet mortgage payments when borrowers lose income through redundancy or illness. Speaking at the launch of the report, Julia Unwin, Chief Executive of the JRF, said: "Since the 1970s, there have been four boom and bust cycles in the housing market. This persistent instability distorts housing choices, inhibits house-building, and drives arrears and possession rates, putting people at great risk, and creates wealth inequality between the generations. "We have set out to provide a series of policy options that together would help provide long-term stability in the market. I urge policy-makers to look at these and act now, because the seeds of the next housing boom have already been sown." Tue, 24 May 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1171Homeowners` High Hopes For House Priceshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=117260 per cent of homeowners believe house prices will recover in the next 2 years, but the size of this increase has fallen to 1.8 per cent (down from 3.2 per cent in August and significantly less than the prediction of an increase of 5.4 per cent a year ago). Optimism has also waned in the longer-term, as homeowners currently expect property prices to grow by only 6.9 per cent in the next 5 years, down from a predicted 10.6 per cent a year ago. If prices change as homeowners expect, they will increase by on average £4,000 by spring 2013 and £15,360 in 2016 according to latest figures from the LSL / Acadametrics house price index. Gareth Samples (right), Managing Director of Your Move, comments, `Slowing house price growth has clearly taken its toll on homeowners’ confidence and, alongside the clear risks to the UK’s long-term economic health, this has made prices fall. But cash buyers and those able to obtain mortgage finance with large deposits are able to gets great value as a result. The strongest downward force on property prices is how hard it is to get a mortgage and while it may be some time before lenders loosen their purse-strings, homeowners know that once finance becomes more readily available, prices will recover.` Although homebuyers were less optimistic about future house prices, many were unaware of how much their property’s value had increased. According to the survey, nearly a quarter of homeowners (23 per cent) believed their home had decreased in value since they bought it. The average homeowner has owned their house for just over 9 years and believes in that time their property has increase in value by 72 per cent. If this increase had occurred, the average increase in value for homeowners would be £92,176 (between March 2002 and March 2011. But for the same period the average house price has actually risen by £102,890. This means homeowners may be underestimating the values of their homes by more than £10,000. Fri, 27 May 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1172House Building At Lowest Level For 90 Yearshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1173The Home Builders Federation (HBF) has welcomed the National Planning Policy Framework (NPPF) Practitioners Advisory Group recentt recommendations to Government, but stressed the vital importance of ensuring the final Government document reflects the scale of the housing crisis with which we are faced. The country is experiencing an acute housing shortage, with house-building at its lowest level for 90 years, first-time buyers at record low numbers and five million people languishing on social housing waiting lists. A healthy housing supply is critical to an efficient and prosperous economy, while house building is one of our biggest domestic employers. To start to tackle the housing crisis and drive economic recovery across the country the planning system needs to become truly pro-growth. These recommendations make a considerable contribution, on which Government can build as it finalises its own draft NPPF for consultation in July. For the NPPF to succeed, it is crucial that the definition of `sustainable development` reflects the huge economic benefits of housing provision, as well as the vital social role housing plays for children, families and older generations. While it is important for local people to be empowered, alongside their elected representatives, the National Planning Policy Framework must make clear that the viability of new housing is a critical consideration in the planning process. Further clarity is required as to how planning decisions that span local authority boundaries will be governed. A strong duty to co-operate is needed so that planning authorities fully accept their housing responsibilities - especially in thriving areas that are constrained by tight urban boundaries. Stewart Baseley, Executive Chairman of HBF said: "The NPPF will be the most important planning document since the Town and Country Planning Act of 1947 and it is vital that that Government gets it right. If Government is serious about tackling our housing crisis, now is the time to prove it. It needs to deliver a planning system that creates real economic growth alongside the homes our country desperately needs." "At the centre of the new NPPF must be the social and economic benefits of development, the hundreds of thousands of jobs created and the families, young and old, provided with a roof over their heads." Tue, 31 May 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1173Landlords Positive Over Buy-To-Let Prospectshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1174Landlords are showing increasing optimism about the buy-to-let market revealed a survey conducted by LSL Property Services. Of the landlords polled, 49% said that they believe it is a good time to invest while just 1% believe that now is a good time to reduce their portfolios. The primary motivation behind the increase in confidence was attributed to the growing demand for rental accommodation. Some 185,600 fewer first-time buyers entered the property market in the last 12 months compared to the level before the credit crunch and the vast majority are remaining in the private rental sector instead. The survey also revealed that in the past three months 52% of landlords have seen a rise in tenant demand and 68% expect demand to grow further in the next twelve months. Increasing rental income has improved financial security for long-term investment. The latest LSL Buy-to-let index show that rents now equal their all time high of £692 per month. As a result landlords with mortgage finance have an average of £274 in rental income a month after mortgage payments which equates to £3,288 per year. The figures suggest that current rental income with a tracker mortgage is large enough to absorb a 3.25% increase in interest rates. The LSL Property Services said that while the confidence amongst landlords is high, the principal obstacle that is holding back the expansion of the private rental sector is ongoing mortgage finance constraints. The survey revealed that 54% of landlords who have recently attempted to raise mortgage finance think it is more difficult to secure finance than a year ago. David Newnes, estate agency managing director for LSL Property Services, said: `Optimism among landlords is not only buoyant, but increasing. Soaring rents and climbing demand from frustrated first-time buyers are not only making buy-to-let an attractive proposition for new property investors but are encouraging existing landlords to grow their holdings before property prices increase once more. `Following the winter downturn, rising rental incomes are adding an increasing financial buffer for landlords. Landlords are taking a healthy sum once the mortgage has been paid each month. Many are taking the opportunity to either pay down their mortgage, expand their portfolio or are using the opportunity to build slush funds for rainy days or future higher mortgage costs. With the bank rate forecast to remain below 2% until at least the end of next year, landlords can expect to see rental payments rise without facing the burden of higher mortgage payments. `The buy-to-let mortgage market is not going to spring back to its pre-downturn level in the foreseeable future, but there are signs that it is picking up slightly for investors. There is still a chronic lack of supply of rental homes and it is crucial that lending criteria loosen to encourage professional investors into the market to grow the private rental sector.` Yuan Phoon, Wed, 01 Jun 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1174Ftbs Push Up May Demandhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1175Housing market activity moved up a gear in May following a steady April, with a notable uptake in first-time activity. This is according to the latest Housing Market Activity Report by Connells Survey and Valuation which shows that residential mortgage valuation activity rose by over one fifth (22%) in May compared to May 2010, an increase of 9% compared to April. Activity has now risen year-on-year for six successive months. Connells says this increase has been largely down to increasing demand from first-time buyers. In May, there were 26% more valuations for first-timers conducted compared to a year ago – an increase of one tenth compared to April 2011. First-time buyers now make up 34% of all valuation activity. The increasing number of homeowners looking to move also played a crucial role in the rise in the increasing activity compared to April. The number of valuations for home movers in May was up one tenth (+11%) on the previous month, albeit a more modest rise of 1% compared to May 2010. Colin Dorman, business development director of Connells Survey and Valuation, commented: `Housing market activity has resumed its slow and steady upwards trajectory, driven by an upturn at the lower end of the market. `Many first-time buyers have been encouraged to enter the market by the uptick in the number of higher LTV products available recently. However, for the average first-time buyer, mortgage finance still presents a formidable challenge. The increasing variety of products is offset against comparatively high rates - alongside overly stringent criteria demanded by lenders.` May also saw an increase in activity from remortgagors. The number of valuations for remortgagors rose by 8% compared to April, a rise of 70% year-on-year – albeit from a very low base. Colin Dorman said: `Remortgaging levels picked up in May as competition between lenders improved, and borrowers took advantage of more lucrative fixed rates on offer. While the remortgage market is slowly flickering back into life, fears over interest rate rises are fanning the flames. When the MPC does finally hike the Bank rate, remortgaging activity will heat up further as borrowers look to avoid being stung unexpectedly by spiralling mortgage costs." While the number of valuations for Buy-to-let investors dipped slightly in May, down 3% compared to April, they were actually 42% more conducted than a year ago. Colin Dorman concluded: `Buy-to-let investors have not been slow to recognise the opportunity presented by colossal tenant demand and record high rents, and many experienced property investors have re-entered the market in the past year. `The structure of the housing market has changed, and until we see a prolonged improvement in the number of first-time buyers able to secure a mortgage, the private rental sector will continue to play a crucial role in housing the UK’s growing population.` Source: Mortgage Introducer Thu, 09 Jun 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1175Number Of Buy To Let Mortgages On The Increasehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1176The buy-to-let mortgage market continues to show signs of improvement with an increase in the number of lenders and products available to landlords. As well as the increase in the number of products available there has been an increase in average loan sizes and loan-to-values since the beginning of the year. This reflects the improving market conditions for property investors and the appetite of lenders to underwrite buy-to-let mortgage business. Further developments throughout the year will hopefully give landlords even more reason to be optimistic about their prospects in the buy-to-let sector. Source; NetRentTue, 14 Jun 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1176Cheaper To Buy Than Rent In Four Out Of Five Townshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1177Renting a home in Britain is currently 9.7% more expensive than owning, on average. It is cheaper to buy instead of rent in four out of five of the 50 largest towns and cities across the country. New research from Zoopla looks at the current asking prices and rents of two-bedroom flats around the country and assumes interest-only mortgage payments of 5% pa to provide a comparison with the cost of renting. The range of results by location provides an insight into where it is best to rent instead of buy, and vice-versa. Milton Keynes tops the list of places where renting is the far less attractive option, with average rents exceeding the cost of servicing a mortgage by 43%, leaving renters there on average £2,964 per year worse off compared to owners. At the other end of the scale, it is currently much more cost-effective to rent in Poole than buy, with renting 27% cheaper and the average tenant better off by £3,240 per year by renting instead of buying. Even in London, which has by far the highest property prices in the country and where the average two-bedroom flat costs £431,366, buying is still 16% more cost-effective than renting. With average rents at £2,137 per month in the capital versus an average cost of a 5% interest-only mortgage at £1,797 per month, renters pay an extra £4,080 annually compared with owners. Nicholas Leeming, business development director of Zoopla, said: `The relative cost of renting as opposed to buying has increased over the past 12 months as rents have risen and house prices and interest rates have remained flat. `Almost 750,000 would-be first-time buyers have reluctantly ended up as renters over the past three years as a result of being unable to get a mortgage. With current house prices and interest rates where they are and with rents on the rise, for those who can get a mortgage, there may never have been a better time to buy.` Thu, 16 Jun 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1177Grant Shapps Launches Scheme For First-Time Buyershttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1178Housing Minister Grant Shapps has called for all aspiring first-time buyers to come forward for new Government help to get a foot on the property ladder. Shapps has launched the FirstBuy scheme, specifically designed to help those struggling to buy their first home due to the need for large deposits. Through FirstBuy, the Government and housebuilders together will offer a 20% equity loan, which alongside a 5% deposit from the buyer will enable them to take out a 75% mortgage on the rest of the property. Loans will be repaid on resale of the property, with the Government`s share available for reinvestment in more affordable housing. The first homes are expected to come on stream in September this year. Shapps confirmed that over 100 housebuilders will take part by offering their new-build homes to first-time buyers. FirstBuy is predicted to help over 10,000 first-time buyers in England over the next two years, with up to £500 million being available across the UK. And because the scheme is only available on new-build properties, it will offer a much-needed shot in the arm to the housing market and the construction industry - supporting thousands of jobs, according to the Housing Minister. Subject to contracts signed over the summer, housebuilders that will be able to offer homes for sale through FirstBuy will include: Persimmon Homes, Barratt Homes, Bovis Homes Limited, CM Yuill Limited, Galliford Try Homes, Morris Homes Limited, Radian; and The Miller Group Limited. Lenders are also backing FirstBuy by preparing to offer 75% mortgages to those first-time buyers making the most of the scheme. They include: Halifax, Nationwide, Barclays; and The Melton Mowbray Building Society. Commenting, Grant Shapps said: "With 80% of young first-time buyers depending on parental help, I am determined that we pull out all the stops to help those who want to take their first steps onto the property ladder. "FirstBuy will do just that - a Government-backed scheme making £500 million available to offer a valuable alternative to the Bank of Mum and Dad. Over the next two years, this will help as many as 10,000 people in England to get that much-needed deposit together and realise their dreams of owning their own home. "And because this help will be available on newly-built properties, it will also offer a much-needed boost to our housebuilding industry, supporting thousands of jobs across the country." Stewart Baseley, executive chairman of the Housebuilders Federation, said: "Firstbuy will help first-time buyers, boost economic growth and provide a vital shot in the arm for the house-building industry. Our members have reacted decisively to support FirstBuy and recognise the scheme is an important first step." Grenville Turner, chief executive of Countrywide, said: `We are pleased that the government is moving quickly with the launch of this initiative. We believe that this will give a much needed boost to the first-time buyer market and also underpin the New Build/Developer market which has experienced difficulty over the last three years. `However, in order to ensure that this initiative delivers, the government, developers and fellow mortgage and estate agency intermediaries will need to work together to advise buyers and ensure that they fully understand the benefits of this scheme.` Tue, 21 Jun 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1178Mortgage Rates At All Time Lowhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1179Average fixed and tracker mortgage rates have reached their lowest levels since Moneyfacts started recording rates in 1988 According to the Moneyfacts research: 2-year fixed deals are at an average of 4.32%; 3-year fixed are at 4.92%; 5-year fixed at 5.29%; And 2-year trackers at 3.37% Michelle Slade, spokeswoman at Moneyfacts, said: `Earlier this year the market expected a rise in bank base rate that saw mortgage rates start to rise. `An imminent rise in bank base rate now appears unlikely and the cost of funding on the swap rate market has reduced. `This reduction in funding costs has led to average mortgage rates falling to their lowest level since Moneyfacts started recording rates in 1988. `Lenders appear to be applying cuts equally across all LTV tiers, which is good news for first-time buyers, as previously cuts were only being applied to the lower LTV bands. `While rates may still fall slightly further, it is likely that some lenders will instead opt to make existing competitive deals available to borrowers with smaller deposits. `Unfortunately for borrowers, lenders don’t appear to be passing the full fall in the cost of funding on to lower mortgage rates. `The spread between the cost of funding and average mortgage rates now stands at its highest level since December 2010. `Lenders are always slower at bringing rates down than they are at raising them and as soon as the market expects a base rate rise, mortgage rates will start to increase again. `If borrowers delay too long to secure a new mortgage deal, they could find that they miss out on some of the lowest rates ever seen.` Yuan Phoon, Mortgage Introducer. Tue, 28 Jun 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1179Average Age Of Ftbs To Hit 41http://www.twmproperty.co.uk/newsdetails.aspx?ID=1180The average age of a first-time buyer will be 41 years by the year 2025, up from today’s average age of 38. The results from LV=`s Delayed Lifestyle report show a big leap from the 1980s when people bought their first house at 29 years old. With the majority taking a mortgage for a term of 25 years or more, this delay is likely to have a significant impact on people being able to pay their mortgage off before reaching retirement. In fact, according to the report, Britain suffers from ‘Peter Pan` syndrome as 16 million people say they have delayed at least one major life step including marriage, having a baby or buying a home. The report shows the average age for tying the knot for the first time is now 32 years for men and 30 years for women. This looks set to increase to 35 years for men and 34 for women by 2025 and has risen steadily since 1970 - when, on average, men got married at 24 and women at 22. Meanwhile, Britons have also put off starting a family - the average age of first time mothers is currently 28 years, increasing from 24 in 1970. This looks set to rise to 29 years by 2025. Along with not being ready to settle down, high costs is the most common reason for people holding back on starting these life events. The research reveals 14.7 million people (30%) say they cannot afford to get married, have a child or buy a house. Nearly half of those in their 20s and 30s (47%) say they cannot afford to buy a house on their current salary. In addition to this, among those who have not yet bought a property, 46% say they have been unable to because they cannot afford the deposit and 16% were unable to get a mortgage. Of those who have bought a house but did so later than they expected, a quarter (26%) delayed buying because they did not have the money for a deposit and one in five (19%) were not ready to settle down. Richard Rowney, LV= life and pensions managing director said: "The cost of living is having an impact on when Brits are able to settle down, have children and buy a house. Many people are struggling to afford these major life steps and our report shows this is set to get worse in the years to come as the average age for marriage, starting a family and getting on the housing ladder are all set to increase. "Faced with high property prices, high inflation, uncertainty over the movement of interest rates and a tough economic climate, it is not surprising Brits are developing ‘Peter Pan syndrome‘. However, people need to consider the long term financial impact of delaying major financial steps, particularly if it means they will still have high debts to pay when they are much older and approaching retirement. "With increasing financial pressures it seems some people feel like it is never going to be a right time to fulfill their goals. Seeking expert financial advice earlier on in life could help people plan better to meet these costs.`Fri, 01 Jul 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1180Investors Should Consider Propertyhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1181Investors should consider incorporating property into their portfolios, according to Simon Kinnie, senior investment analyst, Standard Life Investments. He believes that, in a world of relatively modest yields from most assets, where interest rates are generally anticipated to be lower for longer and international economies are slowly recovering, investors should consider how global real estate could fit into their portfolios. Supply and demand matter for property - future supply remains constrained in many markets and there is often a low level of empty good quality buildings, while improvements in tenant confidence is translating into increased occupier activity and demand for space. Such a situation is generally a precursor for rental growth and hence higher future returns. All in all, Kinnie considers investors can reasonably expect a relatively secure and stable income in the region of 5-8% a year, on average, globally, over the next few years, with total returns approaching double digit - on the key assumption of continued global economic expansion. He said: `As ever, ‘caveat emptor` (or buyer beware) applies. Location, location, location matters for real estate, where quality can vary widely from building to building, city to city. `Within each of the three main real estate regions (Europe; the Americas and Asia), performance is expected to vary widely. For example, although much of Europe is seeing improving economic conditions, and consequently increased occupier confidence and demand for space, this is not the case in most of the peripheral European markets. `Many such cities are already suffering from a high level of empty space and modest demand, alongside the possibility of sovereign default. The prospects for property in, say, Portugal, Ireland and Greece remain poor, for Paris much superior. `At this point in the economic cycle with global economic growth gradually improving and most asset class yields generally remaining relatively modest, investors can benefit from the attractive attributes which global real estate can add to a diversified, multi-asset portfolio. `In many countries, a secure and steady income yield of 5-8% a year will be attractive, while constraints on future supply should provide investors with some comfort if inflation becomes elevated. However, careful selection of markets and individual assets remains paramount.` Source; Mortgage IntroducerMon, 04 Jul 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1181Landlords Positive About Buy-To-Lethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1182Landlords are more positive about the buy-to-let sector than they were a year ago, according to CHL Mortgages Its annual Landlord Survey revealed the growing positivity from sector participants about the outlook for Buy-to-let. Of those asked, 67% of respondents said they were positive about the future of buy-to-let; this is up slightly on twelve months ago when the result was 64%. Landlords were particularly positive about rental demand with 43% suggesting it is now better than six months ago and it is sufficient to cover mortgage repayments, maintenance and cost - up from 35% last year. CHL believes this supports the view that rental yields for residential investment properties have accelerated since the Credit Crunch and subsequent recession three years ago. In terms of short-term plans, 33% of landlords said they were looking to buy more investment properties in the next 12 months – up from 28% last year. However a lack of finance was still cited as the biggest constraint to achieving this aim. The other major constraint on expansion was the high deposit requirements (28%) that now come with buy-to-let mortgage products. Other survey highlights include: • One in five respondents said they would consider fixing their buy-to-let mortgage to protect them against future interest rises. • Four in five landlords make adequate provisions for maintenance of their investment properties from rent receipts. • The same figure indicated they do not make overpayments on their borrowings indicating that borrowers are more inclined to channel any surplus rental income towards maintenance. CHL believes the growing positivity shown by its landlord borrowers is reflected in its own arrears experience. At the end of May this year, the number of accounts greater than three months in arrears had fallen to 855 from a 2010 year-end figure of 933. This represents just 1.92% of CHL’s total of 44,477 live accounts on its loan book and the lender fully expects this downward trend to continue despite a still uncertain economic outlook. Bob Young, managing director at CHL Mortgages, commented: `Our 2011 Landlord Survey confirms that buy-to-let remains an attractive asset class for savvy investors. Landlords are clearly positive about the future of buy-to-let and they have good reason to feel this way with rental demand growing as a result of a number of underlying drivers. `Clearly, a lack of credit, tougher lending criteria and higher deposit requirements are suppressing residential property ownership for many, which is resulting in considerable pent-up rental demand – a real positive for the private rental sector. Tue, 05 Jul 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1182Students Top The Rental Yield Tablehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1183Students and young singles generate the highest yields for landlords, buy-to-let mortgage specialist lender Paragon has revealed. Paragon used independent research from The Landlords Panel from BDRC Continental and found that students generated an average yield of 6.45%, whilst young singles generate 6.22%. Retired people are also high up the table (6.16%), followed by white collar/professional workers and executive or company lets (both 6.13%). At the other end of the scale, non-housing allowance benefit claimants generate the lowest yields at 5.78%, followed by young couples and manual workers (5.94%). The average yield across the market currently stands at 6.2%. Nigel Terrington, Paragon Group chief executive, said: `Yields are an important component of a landlord’s overall business plan because they give a good indication of the income that the property generates. Of course, returns for many landlords will often be higher than stated yields as these are calculated at the current rental income against the property’s value today, not taking into account capital appreciation since the landlord purchased the property or their loan-to-value.` Terrington added: `Student yields typically outperform the wider market because they are let on a per room basis, which can generate higher rental income. On the downside, they tend to require a higher degree of maintenance, so landlords have to factor that cost into their overall business models.` Elsewhere, the research shows that the number of properties in a landlord’s portfolio has little bearing on its overall yield. For example, landlords with one property generated the same average yield as those with over 20 properties (6.2%), whilst those with between two and four properties in a portfolio generated a yield of 6.5%. However, there was clear contrast at a regional level, with yields in the West Midlands outstripping the rest of the UK at 6.5%. These were followed closely by Yorkshire & Humber (6.4%) and the North East (6.2%). Central London lagged in the yield stakes (5.5%) due to the high cost of property in this part of the UK. Wed, 06 Jul 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1183Rents Hit Record High In Junehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1184Rents hit another record high in June, surging beyond the £700 per month barrier for the first time, according to the latest buy-to-let index from LSL Property Services. In June, the average rent in England and Wales rose by 0.7% to £701 per month, surpassing the previous high of £696 in May. With an annual inflation of 4.1%, the average rent is now £28 per month higher than June 2010. As a result of dipping house prices and increasing rents, the average yield reached 5.2% in June, up from 5.1% in May. Over the course of the past year, London’s rents have climbed faster than any other region of England and Wales. In June, rents broke through the £1,000 per month barrier for the first time, reaching a new high of £1,006 per month – an annual increase of 6.9%. The next biggest rises were in the North East, and the West Midlands where rents increased by 5.1% and 4.6% respectively. In the past year, average rents have only fallen in the East of England, where they fell by 0.3%, compared to an annual fall of 1.2% in May. On a monthly basis, rents increased the fastest in the West Midlands and the East of England, rising by 2% and 1.6% respectively compared to May. Rents declined in three regions – the East Midlands, where they fell by 0.5%, the South East and Yorkshire & The Humber, where rents fell by 0.2% and 0.1% respectively. David Brown, commercial director of LSL Property Services commented: `Tenant demand continues to reach ever higher peaks – and there simply isn’t enough rental property coming onto the market to match it. `In areas like London where competition for rental property is most intense, it’s not unheard of for rental properties to be let within a day of coming on to the market. We’ve had five successive months of rent rises, but there is no sign of a let-up anytime soon. Despite several new deals on the market, securing a big enough mortgage remains a tall order for the average buyer. The climbing cost of living and renting is impacting how much renters can save for their deposit, and demand will remain high in short-term. `In the long-term, there is an even smaller chance of a significant slowdown. Just 102,570 new homes were completed last year – at a time when the UK’s population increased by nearly half a million. This trend shows no signs of slowing. Excess demand will be driven into the private rental sector driving rents up further. Landlords thinking long-term will do well.` The total annual return on a rental property was 1.3% in June with high yields offset against an annual decline in rental property prices. The total annual return is the equivalent of £2,203 - £7,486 in rent, with a capital loss of £5,283. If property values continue on their current trend, a property investor could expect to make a total annual return of 2.3% over the next 12 months – equivalent to £3,776 per property according to LSL. David Brown continues:`Home values have been dropping in recent months, and this has taken its toll on annual returns. But record high yields paint a prettier picture for prospective landlords, and matter much more in the short-term as it is rent that pays the mortgage. As property prices bottom out and rental income soars, property investment is proving to be an increasingly lucrative long-term investment. In the last 12 months alone, the average yield achieved per property has jumped from 4.8% to 5.2%. `The foundations are there for profitable investment, but lenders must do more to improve Buy-to-let mortgage lending to bring needed investment to the sector, widening the supply of rental accommodation.` Tenant arrears decreased for a second consecutive month, with 9.3% of all UK rent unpaid or late by the end of June – down from the 11.5% of rent unpaid or late in May. Unpaid rent totalled £257m across the UK in June, down 18% from the £315m unpaid in the previous month. Paul Jardine, receiver and director of Templeton LPA, said: "Tenant arrears dropped markedly last month as landlords took a tougher line with renters showing early signs of payment difficulties. In a market where demand is at an all-time high, and rents are rising, many landlords are less concerned about potential void periods and are looking at the increased rental income they may get from a new tenant. `Nevertheless, we do expect rental arrears - and buy-to-let mortgage arrears - to climb once more as the year progresses. Inflation remains high, and the full scale of public sector job losses has yet to hit home. `As many household finances suffer from changing employment situations and rents rise further, there will be an inevitable rise in the number of tenants experiencing severe difficulties in meeting the monthly rent cheque." Source : Mortgage Introducer Fri, 15 Jul 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1184Number Of 90pc Ltv Products At 312http://www.twmproperty.co.uk/newsdetails.aspx?ID=1185The number of products available at 90% LTV has risen to 312, an increase of 17% since June, moneysupermarket.com research reveals. The last time there was over 300 products available was in November 2008, when Bank of England base rate was at 4.5% and the impact of the credit crunch began to have a major impact on mortgage lending. As well as an increase in the number of mortgage products available, the average rate on 90% LTV products has also begun to fall. The average rate on fixed rate mortgages has dropped 0.53% in the past year to 5.87% and has dropped 0.17% since last month. However tracker mortgages at 90% LTV are more expensive than this time last year, the average rate is now 5.5%, a drop of 0.22% since June. Clare Francis, mortgage spokeswoman at moneysupermarket.com, said: `There is a severe shortage of first-time buyers at the moment and one of the reasons for this is down to the fact that it`s been so difficult to get a mortgage unless you`ve had a deposit of 25 per cent or more. It`s therefore encouraging to see an increase in the number of 90% and 95% mortgages available. `That said, we are still a long way off the number of products that were available pre-credit crunch and those with smaller deposits are still having to pay a higher rate of interest than those who are able to put down 25% or 30%. It`s good to see things are moving in the right direction though as this should make it slightly easier for people to take that first step onto the property ladder.` Source: Yuan Phoon, Wed, 20 Jul 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1185Average Btl Rates Dropshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1186The average chosen buy-to-let rate for both fixed and tracker mortgages has fallen in the second quarter 0.18% from the first quarter reveals TBMC’s Landlord Profile Tracking Index. The research sourced from 754 Buy-to-let applications, revealed the average chosen fixed-rate was 4.82% during the second quarter of 2011, down 0.18% from 5.00% during the first three months of this year. The average chosen tracker rate was 4.02% during the second quarter of 2011, down 0.18% from 4.20% during the first three months of the year. Andy Young, chief executive at TBMC, said: `The index shows that average rates fell during the second quarter of this year, following the rise in the previous quarter. This reflects the weight of opinion in the City that any rise in the Bank of England base rate is likely to happen much later in the year than previously expected, and perhaps not until 2012. `The expectations of the City regarding interest rate rises are mirrored by the product choice of buy-to-let property investors during Q2, with variable rate products accounting for 59% of applications received by TBMC compared with 41% for fixed rates. `Variable rates are also popular amongst landlords as they often present the most achievable rental calculations in the marketplace.` Source: Yuan Phoon,Mon, 25 Jul 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1186House Prices In New Rises, Says Zooplahttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1187House prices have gone up by 2.6% since the start of this year, Zoopla has claimed. It puts the average value of a home at £216,260, up £5,478 since January – equating to a rise of £30 a day. The site also claimed that prices have climbed in eight out of 11 regions. According to the website, property prices fell 4.9% in the last six months of last year, after climbing 3.1% in the first half. This year, Zoopla claims, has seen prices rise by 2.7% in both England and Wales (to £216,260 and £152,576 respectively) and by 1.1% in Scotland (to £155,927). But the claims by Zoopla once more pinpoint the ongoing discrepancies between various house price reports. Although Zoopla models average values for all properties, not just those for sale, its pricing is far removed from the Land Registry, Halifax and Nationwide reports. All are currently quoting around £163,000. Zoopla also said that house values in the Olympics area had surged by 11.9% since the awarding of the Games in July 2005, outstripping the UK average of 7.2%. Yet this week, Lloyds TSB reported that house prices in the Olympics area had gone up by 28% in the same period – exactly the same as for the rest of the UK, but much less than the 48% rise across London as a whole. A spokesman for Zoopla said that its estimated values are based on the last registered sales price at the Land Registry, combined with Zoopla’s algorithm, which uses asking prices, local information and other factors, and was similar to an AVM. Asked about the huge discrepancies with the Land Registry report, he explained: `When analysing house prices, the Land Registry takes the geometric mean of a single month’s sales from ten years ago, and indexes that mean up to the present value. `Zoopla.co.uk estimates the present value of every individual property sold since 1995, and then takes the arithmetic average price of these present values.` Flummoxed, EAT asked if this means that Zoopla thinks that the Land Registry data is wrong? The spokesman said it was simply a different calculation. `Put very simply, Zoopla uses a larger sample of properties to calculate its values and considers the value of different property types in relation to their share of total housing stock,` he said. `The Land Registry uses the prices of transactions that take place in any given month. This is a more limited sample and doesn’t take into account the higher turnover rate of certain property types – flats, for example.` Let us know what you think about house prices? Wed, 27 Jul 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1187Bank Base Rate Held At 0.5pchttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1188The Bank of England has held the Bank Rate at 0.5% and the size of the Asset Purchase Programme at £200bn Today the BoE’s Monetary Policy Committee voted to maintain the official Bank Rate paid on commercial bank reserves at 0.5%. The MPC also voted to maintain the stock of asset purchases financed by the issuance of central bank reserves at £200bn. The previous change in Bank Rate was a reduction of 0.5% to 0.5% on 5 March 2009. Ben Thompson, managing director at Legal & General Mortgage Club, said: "Although as always there is mixed economic news and results in both domestic and worldwide economies, if anything the headwinds in terms of recovery have become stronger over the last month, and these will no doubt continue to slow the pace of any UK recovery. `We see no indicators or statistics that would have provided even the faintest argument for a rate rise today, and we remain of the view that rates will stay as they are for the rest of this year." Simon Gammon, managing partner at Knight Frank Finance, said: ""As the Bank of England votes to keep base rates on hold for another month, borrowers can benefit from the best of both worlds. "The base rates now look set to stay low for some time yet, so the variable-rate deals on the market are an attractive option for those comfortable with the prospect of their mortgage payments rising at some point in the future. "Mortgage lenders are also stepping up the competition in the fixed-rate loan market in a bid to attract borrowers in this sort of climate, resulting in some very low rates on offer". "Lenders are also becoming more innovative as they jostle for custom. For example, we have identified a "hybrid" product which addresses both the needs of those who want to benefit from a low variable rate and the certainty that comes with a fixed-rate deal. The mortgage offers a low variable rate for two years and then locks into a very competitive fixed rate for the following three years. Competition for the deal is fierce however, so only the best presented applications are being accepted." Richard Barker, mortgage manager at Norwitch & Peterborough, said: "Today’s decision to leave the Base Rate unchanged at 0.50% was widely anticipated across the industry. In fact, many economists now believe that rates will remain on hold for the remainder of the year. So for the moment, those on a variable rate, or tracker have more time to consider their options. "The consumer prices pndex inflation rate fell to 4.2% in June from 4.5% in May, which alleviated some pressure to increase rates imminently. In addition, the instability of the worldwide economy has undoubtedly reinforced the decision." Chris Gardner, mortgage expert at Obligo, said: "Raising rates at the current time would be economic suicide. And the MPC knows as much. "Yes, inflation remains a threat but an even bigger threat is the delicate state of both the economy and consumer confidence. "With many 5-year fixed rate products priced at around 3.5% to 3.75%, borrowers are increasingly filling their boots. "The price of fixed rate products shows that lenders have priced in no movement on rates for at least two quarters. "But this window of opportunity may be closed as quickly as it has opened given the schizophrenic nature of the markets right now. "For savers, this latest decision is yet another body blow." Source: Yuan Phoon,Thu, 04 Aug 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1188Property At Most Affordable In 8 Yearshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1189The proportion of towns and cities across the UK that are affordable for first-time buyers has risen to its highest level since 2003, Halifax has claimed. Halifax research showed the average house price paid by a first-time buyer in June 2011 was affordable for someone on average earnings in 48% of all local authority districts. This is the highest proportion of housing affordable for first-time buyers in eight years and compares with 40% in 2010 and just 6% in 2007. Some 80% of all LADs in the North of the UK are affordable for first-time buyers - 10 times the proportion of affordable areas in the South (8%). The North East is the only UK region where all local authority districts are affordable for first-time buyers. In contrast, London is the only region with no affordable areas for first-time buyers on average earnings. Despite the improvement in affordability, the number of first-time buyers has decreased slightly over the past year in line with the market. Halifax estimates that there were around 86,000 first-time buyers in the first half of 2011, a fall of 10% from the same period in 2010 and close to half the number in the first six months of 2007 (181,500). First-time buyers put down an average deposit of £27,719 in the first half of 2011, equivalent to 21% of the property price. There are signs that more products for buyers with smaller deposits are being made available. This is partly reflected in an 8% fall in the average deposit from £30,251 since the same period in 2010. Halifax also referred to research showing many potential first-time buyers have given up on the possibility of getting on the housing ladder. Some 77% of non-homeowners still aspire to own their own home, but half (46%) believe that Britain is becoming a nation of renters because of the obstacles facing first-time buyers. Meanwhile 55% believe first-time buyers are too scared of being turned down to apply, despite the fact that Halifax said it accepts eight out of 10 mortgage applications from first-time buyers. Suren Thiru, housing economist at Halifax, said: "It is encouraging that housing affordability for first-time buyers in general has improved significantly over recent years, as a consequence of the marked falls in both house prices and interest rates since 2007. `However, there is a distinct North-South divide within this improvement as the majority of affordable areas are in the North." Stephen Noakes, commercial director of Halifax mortgages, said: "The significant challenges in raising a deposit and widespread pessimism about the chances of being accepted for a mortgage are clearly preventing some potential first-time buyers from even attempting to get on the ladder. `However there are opportunities for those who do want to own their first home. The key is to provide more information, more education, and more help for non-homeowners in order for them to make the most of those opportunities. `It is with this intention that we have launched the Halifax First Time Buyer Pledge". The Halifax First Time Buyer Pledge has four declarations including agreeing to let borrowers know the criteria used to assess applications; providing a personalised mortgage promise for how much the bank will lend without leaving a lasting record on borrowers’ credit profiles; if the application is unsuccessful Halifax will help the borrower understand why; and, whether the application is successful or not the lender will provide clients with an action plan to move forward. In order to support that pledge, Halifax said it will be rolling out a spate of new initiatives over the coming months in order to better inform and support first-time buyers who want to get on the ladder, but who are afraid of doing so. David Newnes, director of LSL Property Services, owners of Your Move and Reeds Rains, added: `Property prices outside of London and the South East are stagnant and this means average salaries – which are growing by 2.3% annually – are giving buyers more bang for their buck. `Add to this the effect of ultra-low interest rates on the cost of mortgage finance and the effect is a sharp rise in the affordability of homes. `In regions where we’ve seen prices fall since the beginning of the year, transactions are beginning to pick up, suggesting that many buyers have decided to take advantage of the opportunity to get on the property ladder relatively cheaply. Source; Mortgage Introducer Mon, 08 Aug 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1189More Landlords Get Set To Expand Portfolioshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1190Landlords are poised to buy up more properties as rental demand continues to swell, according to joint research from ARLA and the Residential Landlords Association. Landlords most likely to expand their portfolios are in central London, where one-third plan to add more properties over the next year. According to a survey of 1,519 UK landlords, the regions with the highest number of landlords buying property in the last 12 months were the North-East, the Midlands and Greater London. Ian Potter, operations manager at ARLA, said: `Traditionally, London has led the way with buy-to-let, but we are seeing signs that investors elsewhere in the country believe now is the time to buy. If you can arrange finance, it could be prudent to take advantage of lower property prices.` While 33% of landlords in central London and 30% in the rest of London were likely to buy more properties to let in the next 12 months, 30% of landlords in the Midlands also said they would be likely to buy in the next year. The research showed that landlords in the North also have bigger property portfolios, with an average 13 properties per landlord. In comparison, landlords in central London and the South-East own an average six rental properties each. Potter said: `While it is a positive sign that landlords are continuing to purchase rental properties, this individual activity needs to be boosted by larger-scale investment. With demand still far outstripping supply, and home ownership out of reach for many, it is critical that more people have access to a home of their choice.` Tue, 09 Aug 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1190First-Time Buyers Hope To Purchase When They`Re 35http://www.twmproperty.co.uk/newsdetails.aspx?ID=1191Prospective first-time buyers believe they will be able get on to the property ladder when they are 35 – 12 years older than first-time buyers in the 1960s. But more than half (53%) of young adults currently not on the property ladder believe they will never be able to afford to buy a home. Half of 25 to 34-year-olds say they would need a windfall or a better paid job in order to be able to fund a deposit. Research by Post Office Mortgages tracked the average age of first-time buyers since 1960, finding that those who bought their first home in the early 1960s were on average just 23. Mike Cooke, Post Office head of mortgages, said: `Many would-be first-time buyers may have been put off trying to get on to the housing ladder by the size of deposits now needed. `But there are very competitive options available for people who are keen to own their first home, and prospective buyers may not have to wait until they are 35 to take this step, with first-time buyers with the Post Office averaging 30 years old. `In fact, so far this year, four in ten of our customers were first-time buyers, demonstrating that it’s possible for many to get on the ladder sooner than expected.` Source; LATMon, 22 Aug 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1191One In Six Homes Is Now A Private Rental Propertyhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1192One in every six homes in England is now a private rental property, new figures from Communities and Local Government have revealed. The figures show that 17.4% of homes are now within the private rented sector, an increase from 16.4% in 2009 and up 229,000 by number. Since 2000, the number of properties in the sector, which currently stands at 3.9 million, has risen by 1.8 million, reflecting the shift in housing tenures England is currently experiencing. Conversely, the number of properties in the owner-occupied sector fell from 14.9 million in 2009 to 14.8 million last year – the lowest since 2000. Nigel Terrington, of specialist buy-to-let lender Paragon, said: `More people than ever before are now relying on the private rented sector and we are certainly seeing a change in perception towards the sector. `The increase in rental homes is fuelled by a combination of landlords buying property with cash and buy-to-let mortgages, people letting out homes they have inherited and home owners deciding to let their property. `We are seeing a very different mix of tenants in the sector now. No longer is it dominated by students and young professionals, it is a much wider group including more families and mature tenants, and therefore we need to have a PRS adaptable to suit all. `However, further growth is needed as tenant demand is clearly exceeding supply and to avoid a greater squeeze on the PRS, landlords need to be encouraged to invest in their portfolios going forward.` Tue, 23 Aug 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1192Property Supply Holding Market Backhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1193Members of the National Association of Estate Agents are reporting a drop in the number of properties available, resulting in fewer sales. Peter Bolton King, chief executive of the NAEA, said: "The NAEA`s latest figures show that buyers are coming back to the market - the average number of house-hunters registered per branch increased significantly in July, from 263 in June to 299. This is an unprecedented increase for what is traditionally a very quiet time. "As mortgage conditions are more favourable now than at any time in the last three years, those in a position to buy are coming out of the woodwork and benefiting from prices that are, overall, still lower than a year ago. "However, supply continues to be an issue and NAEA members are reporting a drop in the number of properties available. `The truth is that, for most people - particularly first time buyers - while buying a property is becoming more affordable, there just aren`t enough available properties on the market." Fri, 26 Aug 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1193First-Time Buyers Pay Out £110 More To Renthttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1194The monthly cost of a home for a first-time buyer is £110 less than if they were renting. According to new research by Halifax, the average first-time buyer will spend £567 a month on mortgage repayments and other costs, while rent for the same property would be £677. The 15% differential is in contrast to 2008 when the average cost of buying was 29% (£212) more than renting. The decline in costs for a first-time buyer has been driven down by falls in mortgage rates and house prices. Meanwhile, rents have been rising. The average mortgage rate for a new borrower is now 3.84% compared with 5.91% in mid-2008. The average first-time buyer house price has fallen by 14% over the same period to £124,378. Although the size of the deposit needed today is £27,127, equivalent to 20% of the property value, this is still a little lower than the average of £28,751 in July 2008. Despite the greater affordability, the number of first-time buyers has fallen by almost a quarter since 2008. There were 84,000 first-time buyers in the first half of this year – 23% lower than in the same period in 2008. Around 60% of all mortgage applications are currently rejected. The Halifax says that buying is now cheaper than renting in every region of the UK – but in the South-East it is a close run thing, with the cost of buying only 1%, or £9, lower than renting. As well as taking mortgage payments into account, the Halifax also included income lost by funding a deposit, insurance costs, and costs of maintenance and repair. Nigel Stockton, financial services director at Countrywide, the UK’s largest mortgage broker and property services group, said: `Whilst lenders are becoming much more competitive with the mortgage products on offer, it is the level of mortgage deposit that consumers are expected to find and loan to values which now remain the critical issue, not affordability. `This is definitely holding back the housing market and we expect current lending levels to be lower than in 2010 and there are no signs that this will change in the short term. `The Council of Mortgage Lenders has reaffirmed its lending forecast of £140bn for 2011. This looks optimistic to Countrywide.` Source: LATWed, 31 Aug 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1194Broadband Counts More Than Location, Say Student Tenantshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1195For the first time, students have rated internet access above location as their top priority when looking for accommodation. The National Student Housing Survey looked at attitudes of 15,490 students from over 120 universities and colleges, after asking them what they look for in a property and what they expect to get for their money. The research covered those in university halls of residence, private halls of residence, homes bought by parents, and private rental accommodation as well as those remaining in the family home. With more private property companies offering accommodation solely targeted at the student population, the survey underlines that smaller landlords and property investors need to start listening to these consumers, or risk losing out to bigger competitors. The survey shows that 90% of students rate good internet access as a very important factor; 85% put value for money as their priority, but just 75% make location their number one reason for choosing accommodation. The most negative factors in students’ experience of accommodation, which they rated ‘bad’ or ‘very bad’, came with their experience of getting repairs done on time, noise levels, and lack of both recycling and environmental facilities. Cooking and laundry facilities plus decent toilets scored highly in factors which impact on the quality of residents’ day-to-day experience. Lack of fridge space was the number one complaint in all types of accommodation. The survey revealed that anyone looking for accommodation for the following year usually begins their search in November, although private rentals are more erratic because they are more likely to be influenced by friends and the choice available. Private accommodation is at its peak uptake between June and September. While those looking at halls usually only consider one option, the importance of making private student accommodation stand out from the rest is clear: half of the students searching for private rentals consider three or more rental properties before making their choice, whilst 4% of students look at ten or more before deciding. The top places to hunt for future accommodation were via the university housing or accommodation office, lettings agencies, and internet search engines. The average rent paid by students in either halls or private rentals is £90 to £99 per week, although university halls are more likely to include ‘extras’ within that fee such as internet access and cleaning. Tim Daplyn, the survey’s project director, said: `Going to university is no longer a right, but something students pay a lot of money to do. They know what they want and they are intelligent enough to make sure they get it. `Student accommodation remains a thriving business, but those who will continue to succeed in this market will be those who listen to their tenants and respond effectively.` Thu, 01 Sep 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1195Bank Rate Held At 0.5pchttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1196The Bank Rate has been held at 0.5% for the 30th month running after the Bank of England’s Monetary Policy Committee met this morning. The Bank also kept its programme of quantitative easing at £200bn. One member of the MPC, Adam Posen, has consistently voted for an extra £50bn of QE while Martin Weale, another MPC member, delivered a speech on 25 August at a lunch hosted by the Doncaster Chamber of Commerce declaring such an action was not needed. Weale said: `I do not think our August forecast or the more recent market movements since then as yet make a case for such a policy. `Although the economy is weaker than we would like, business surveys do not suggest the picture is, at present, like that of the summer of 2008.` Richard Barker, mortgage manager at N&P, said: `The decision to leave Base Rate unchanged at 0.50% for the 30th month in a row was widely expected across the market. Although the current Consumer Prices Index inflation figure remains well above the government’s target, the UK economy remains relatively fragile at present and any increase is now predicted to occur in 2012. Recent housing market data suggests that house prices fell slightly in August and affordability for first time buyers is stretched, further reinforcing the argument to keep rates on hold for longer. "Whilst the Base Rate remains low, variable rate mortgages are likely to remain popular with many borrowers." And Ben Thompson, managing director, Legal & General Mortgage Club, added: "Another pretty straightforward decision this month however there will no doubt have been much to discuss. The Bank hasn`t quite played all its cards in terms of stimulus for the economy and could still launch another round of QE, however the jury is out in terms of the benefit of doing this unless absolutely necessary. We expect rates to remain unchanged for a long time with QE kept under constant review and this will be tremendous news for borrowers but quite the opposite for savers, many of whom have had to dig deep into their savings to boost their income and cover costs." Minutes of the August MPC meeting revealed that the decision to hold the Bank Base Rate was unanimous when previously two members had regularly voted for an increase to ward off rising inflation one of which was Weale. Weale said he changed his mind because of the weaker economic outlook, noting the slowdown in the US and the problems in the eurozone area. The results of how Weale and other members of the MPC voted on various propositions today remains unknown until the Bank releases the minutes of the meeting on 21 September. Source: Yuan Phoon, Thu, 08 Sep 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1196Capital Raising Drives Btl Remortgaginghttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1197Buy-to-let remortgaging is being driven by landlords raising capital to fund portfolio expansion, research from Paragon Mortgages has revealed. Paragon’s intermediary survey showed capital raising was the number one reason for landlords remortgaging during the second quarter of 2011. On average 47% of Buy-to-let remortgages handled by intermediaries surveyed were for the purpose of raising capital, whilst 35% were to achieve a better rate of interest. Other reasons for remortgaging included landlords’ existing lenders actively encouraging remortgaging and dissatisfaction with an existing lender. Remortgaging hit its highest level since the final quarter of 2008 during the second quarter according to figures from the Council of Mortgage Lenders. The £1.86bn advanced for remortgage purposes represented 53% of the total £3.5bn buy-to-let lending for the period. John Heron, managing director of Paragon Mortgages, said: `Approximately two thirds of properties in the private rented sector have no mortgage whilst the average loan to value on those properties with a mortgage is 48% so there is a huge amount of equity in the sector that landlords are looking to utilise to help fund portfolio growth. `CML figures show there was a significant increase in buy-to-let remortgage cases between the first and second quarters of this year and it appears a large proportion of that is from landlords releasing equity to generate seed capital for portfolio expansion. `In a market characterised by high rental demand, we could see this becoming more commonplace.` Source: Mortgage IntroducerTue, 13 Sep 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1197Banks Face Major Reformshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1198UK banks should ring fence their retail banking divisions to protect them from riskier investment banking arms said the Independent Commission on Banking. The report led by Sir John Vickers and backed by the government had two remits, to find ways to avoid another taxpayer bailout and to look at competition on the high street. The report said: •Retail banks should be ring-fenced from their investment arms and should be separate legal entities with an independent board. •Only these ring-fenced banks should be able to take deposits from individuals and small businesses. •Retail banks should be banned from providing certain, more risk services. •People who wish to move banks and switch their accounts should be able to do so in seven days and for free. •UK banks should hold more cash. This is defined as at least 10% of its risk-weighted assets, money used in investment activity. •UK banks should also have a loss-absorbing capacity of at least 17%-20%. The ICB called for the changes to be implemented by the start of 2019. If the recommendations had been in place before 2007 they would have helped prevent the run on Northern Rock and the collapse of Lehman Brothers, three years ago this week, which led to the banking crisis the ICB claims. The British Bankers’ Association said in a statement: `UK banks are well on the way to implementing the sweeping reforms already brought in and expected to be brought in by UK, EU and global authorities to make banks and the system safer and to ensure that banks can fail in the future with savers and taxpayers protected and the supply of finance to the economy maintained. `The ICB`s recommendations cover the same important issues. `Any further reform measures adopted by the UK authorities need to be carefully analysed and compared with those agreed internationally. `It is vital that the full impact any further reforms will have on the economy, the recovery and banks` ability to support their customers in the UK is understood.` Adrian Coles, director general of the Building Societies Association, said: `We welcome the ICB report which if implemented will make the banking system in the UK both more stable and competitive. `The ring-fence proposals appear both sensible and proportionate. `Our hope now is that Government will move ahead with these recommendations and at the same time use it to do what they promised in the Coalition Partnership Agreement and bring forward detailed proposals to foster diversity in financial services and promote mutuals.` Graeme Hughes, group director of Nationwide, said: `Building societies were not part of the problem, but we are part of the solution. `We have been operating under ring fencing for many years and during that time our customers have been getting great deals and excellent service in the knowledge that we are safe and secure and do not take unnecessary risks with their money and there is no reason for this to change in the future. `The ICB`s proposal to ring-fence customer deposits is a sensible one. `As a building society, Nationwide has always operated a ring-fence model and this has stood us in good stead to weather the financial crisis. "Now that the report has been published, the government should press ahead with these reforms." Peter Vicary-Smith, chief executive of Which? said: `Consumers can’t afford to bail out the banks again and they don’t trust bankers to change their behaviour so Which? agrees with the ICB’s call for strong action by the government.` Source: Yuan Phoon,Tue, 13 Sep 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1198Abolish `Obviously Stupid` Stamp Duty, Says Top Think Tankhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1199Stamp Duty on the purchase of homes should be abolished, Britain’s leading economic think tank has said. The Institute for Fiscal Studies said that Stamp Duty is an ‘obviously stupid’ tax which stopped people from moving home because of the huge tax bill associated with buying a new property. It wants Stamp Duty to be completely scrapped as the first measure in a wholesale reform of Britain’s current taxation system, which it branded a ‘mess’. Paul Johnson, director of the IFS, said there was `little about the UK tax system which looks like it was deliberately designed`. He said of Stamp Duty that it is a bad tax because it reduces the number of transactions. The IFS call will have the enthusiastic backing of developers and estate agents, with the property industry long calling for a reform of Stamp Duty which they say distorts the market. It is currently payable on all homes costing £125,000 and above (or £250,000 and above for first-time buyers). The highest rate is now 5% on £1m-plus homes. In addition to scrapping Stamp Duty, the IFS has proposed wholesale changes to Council Tax, land taxes, rental property taxes and to VAT, fuel duty and income tax. It wants to see Council Tax replaced with a new tax, where people would pay a percentage of the value of the property they live in. All homes would have to be revalued, as Council Tax is based on1991 valuations – something which the Institute described as ‘ridiculous’. Source: EATFri, 16 Sep 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1199New Legislation For Sale And Rent Back Confirmedhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1200Changes to the Financial Services and Markets Act 2000 have now come into effect to improve the level of protection for consumers engaging in sale and rent back transactions. The Financial Services Authority welcomes the new legislation as it believes some small firms and individual investors who provide SRB agreements think they do not need to be regulated because SRB is not their main source of business. The changes make it clear that anybody who conducts SRB business – even a single transaction – must be authorised by the FSA, unless they are related to the customer. The new legislation therefore brings more consumers under the FSA’s regulatory protection. In its latest Quarterly Consultation Paper, published last week, the FSA consulted on guidance that reflects the new legislation and will assist SRB firms by helping them understand when they need to have FSA authorisation. The consultation will be open for two months and the FSA is aiming to publish the final guidance by Christmas. Any firms or individuals who provide SRB agreements must stop doing so immediately unless they have applied for and been given the relevant FSA permissions. Source; EATMon, 19 Sep 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1200Deposits Rise Tenfold, Whilst Incomes Only Doublehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1201The deposits required to buy houses have increased tenfold in the last 20 years – but household income has only doubled. New research from online bank First Direct found that since 1990 – the depth of the last housing crash – the average housing deposit has risen from £6,793 to an average of £65,924 in 2011. House prices have also risen in the same period, by 4.3 times, but household incomes have risen by only 2.5 times. The research also found that 2010 was the most difficult year to buy a house in the past 20 years, with the average house price 6.3 times the average household income, and the average deposit running at 1.7 times the average income. The most affordable years were 1995 and 1996, with the house price ratio at a low 3.4 and the deposit ratio at 0.3 times the average household income. The past two decades have endured two recessions – the early 90s recession which lasted from Q3 1990 to Q2 1992 and the late 2000s recession, which officially ran from Q3 2008 to Q4 2009. In the first recession, household income rose albeit modestly and the average deposit required dropped and stayed low for most of the 1990s, as did inflation. However, the more recent recession has been unkind both to existing home owners and first time-buyers. Between 2008 and 2009, average household income dropped by £1,688. While house prices also dropped by £10,148, the average required deposit rose by over £10,000 in one year alone, hitting first-time buyers particularly hard. Despite house prices recovering somewhat, to date the average housing deposit has risen by £22,451. The average LTV in 1990 was 88%, rising to 90% in the mid 90s and now at its lowest ever, at 73%. Directly comparing the two recessions, the 90s downturn was tougher on home owners with mortgage rates hitting 15%, driving home owners into forced sales while prices fell dramatically. The 2000s downturn was tougher on buyers. Bruno Genovese, senior savings product manager at First Direct, said: `Much has been made of rising house prices, but the average deposit needed in the first place has actually risen more than twice as fast as house prices and almost four times as fast as income. This is why we are seeing first-time buyers getting older, with more and more people struggling to get on the property ladder.` Source: EATMon, 19 Sep 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1201Over-55s Should Not Be Forced To Sell Homeshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1202While some over-55s are happy to use their housing equity to finance their care, a clear majority (62%) believe that they should not be forced to sell their house to pay for care. Aviva`s latest Real Retirement Report reveals those aged 65-75 were the most averse to seeing their homes sold to pay for care (68%) - potentially as they have already ear-marked the equity for other costs in retirement. Despite Government warnings that the current elderly care system is unsustainable, 70% of over-55s don`t believe that they should pay for care in retirement. Of those who do, they state that just £3,610 is a fair cost for a lifetime of care, reveals Aviva`s latest Real Retirement Report. While the majority of over-55s would prefer not to pay for care, they do concede that it is unlikely that the State will be able to pay for everyone`s care. The most popular funding options were for the ‘better off` to contribute to the cost of their own care but for the Government to pick up the tab for everyone else (51%) or for those who can afford to, to contribute to the cost of care (36%). How affordability is determined was a matter for debate with some suggesting it should be based on current assets (16%) and others feeling lifetime income (14%) should be the measure. Irrespective of what system was used, the majority (53%) felt there should be a cap on how much an individual was forced to pay towards their own care. Despite the fact that under the current system people are expected to finance aspects of their care, the research highlighted a significant lack of preparation. Over half (53%) of over-55s have no plans at all in place to meet these costs and 14% continue to believe that the Government will cover all the fees. Even amongst those who do say they have some plans in place, just 2% have long-term care insurance with others preferring to rely on savings and investments (13%), housing equity (9%), their pension funds (3%) and on family assistance (3%). Just 19% of over-55s say they are relaxed with the majority feeling concerned (41%), just over a quarter feel worried (29%) and - even - terrified (12%) about the prospect of meeting long-term care costs. While there were lots of different options as to how care should be funded, one clear message from the research was that the over-55s needed more guidance. Indeed, almost half (47%) said there needs to be clearer information on the topic, 46% felt the Government should set clear universal care standards and 36% would like to see a single Government department responsible for all care issues. This move would help to clear up any confusion as 48% of people look to the State in one form or another for advice on this issue - 18% to the Government directly, 16% to their local council and 14% to a medical professional. Clive Bolton, ‘at retirement’ director at Aviva said: `With a rapidly ageing population and the Government sending clear signals that it can’t finance care for all those who need it in retirement, there is significant need for advice. `However, just 11% of consumers would consult financial advisers for advice and 5% would speak to a financial services company on how to cope with the cost of care. `How to meet long-term care fees is a problem that financial services companies such as Aviva are actively considering. This issue is made particularly challenging by the fact that the actual cost of care is only determined when it is needed rather than when it is planned and paid for. `However, the proposals in the Dilnot Review mean that going forward there is potential for much greater clarity around costs so it will be easier for consumers - and companies - to plan for the future. `This can only be good news for advisers and we hope to see more entering the market as its potential becomes apparent.` Source: Mortage IntroducerWed, 21 Sep 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1202Three-Quarters Of Property Investors Set To Buy More Rental Homeshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1203Over three-quarters (76.8%) of UK property investors are considering buying additional investment properties over the coming year. A recent survey of its investors by Investment Firm Assetz, shows confidence, with landlords highlighting strong rental demand as their main incentive for expanding their portfolios, also high and rising rental values, and the belief that prices are at or near the bottom. Just 10% of investors believe now is a bad time to invest in UK buy-to-let, with the majority citing concerns about the economy as the main deterrent. Investors are taking a long-term view of the property market, with 50% stating that long-term capital gain is their top priority, closely followed by rental income (44%). Just 6% stated that they were hoping to benefit from short-term capital gain. Nearly half of those surveyed (45.9%) said they are currently achieving gross rental yields of more than 5.5%, with almost a fifth (19.4%) achieving 9% yields or higher. Risk-averse lenders are making no secret of the fact that they would rather allocate the limited funds they do have to the lower-risk option of buy-to-let loans with deposits of typically 25–40%. `The sector has not been as hard hit by the recession as originally feared, due to the fact that interest rates have remained extremely low. This has protected landlords by giving them cashflow, and future rate rises, which are likely to be small and gradual, will be covered largely by rental increases.` Source: LAT Thu, 22 Sep 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1203Most Young People Aspire To Buy Own Homehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1204More than eight out of ten young people (18-24) still aspire to own their own home by the time they are 30. This is according to the latest quarterly consumer survey published by The Building Societies Association which shows that amongst potential first-time buyers overall, more than nine in ten (94%) respondents say that they would ideally have bought by the time they are 35 with more than seven in ten (75%) having an aspiration to become a homeowner in their twenties. `Property Tracker`, which reports the views of over 2,000 UK adults about the housing market every three months, also highlights a sharp jump in the number of people who see raising a deposit as a barrier to home ownership, up from 62% in June to 69% in September, the highest percentage reported for this factor since the survey began in June 2008. Conversely, only 16% of respondents said that they were concerned about future falls in house prices, down from 51% in September 2008 and 27% this time last year. In fact, almost one in four of those questioned (39%) thought that property prices would rise over the coming 12 months, with 26% believing that they would fall. The median forecast is for house prices to remain flat for the next 12 months. Consumer confidence in property purchase has improved marginally in the last three months with 43% believing that now is the right time to buy, up from 41% in June. Confidence is markedly higher amongst those already on the housing ladder where 51% thought that now was a good time to buy compared to just 32% of those who are currently renting or living rent-free. Similarly 22% of existing homeowners felt that this was not the right time to buy compared to 37% of those in the rented sector or living rent-free. Commenting on the views of UK consumers, Paul Broadhead, BSA head of mortgage policy, said: "It is encouraging to see that the aspiration to buy is still strong among young people. `It`s clear, however, that consumer sentiment coupled with some perceived barriers is dampening activity in the housing market right now. Undoubtedly consumers have some fears over long term job security and unsurprisingly pressure on household budgets is also having a huge effect. "On the other hand, the availability of mortgage finance has improved, if modestly, and some lenders, primarily mutuals, are now offering higher loan to value ratio loans tailored to the first-time buyer market. "There is no doubt that the economic climate is difficult; however consumers are generally more upbeat today than they were back in 2008." Source; Mortgage IntroducerThu, 22 Sep 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1204Buy-To-Let Continues To Grow In Popularityhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1205The National Landlords Association has reported a continued increase in the popularity of buy-to-let mortgage products. A survey by NLA Mortgages found that the number of schemes provided during the second quarter of 2011 grew by 25% when compared to the first three months of the year. Average loan sizes also increased by £2166 to £138,525.80, representing a growth of 6.4% since January. This growth is mainly due to the greater number of lenders offering higher loan-to-value mortgages and the availability of finance for Houses of Multiple Occupation which tend to be higher value properties. Over 50% of Buy-to-let offers processed by NLA Mortgages were for loans over 70% LTV – resulting in an average LTV of 67%. Low interest rates and future predictions were reflected by the increased popularity of variable mortgage products, comprising 59% of all mortgage applications. David Salusbury, NLA Chairman, commented: `These findings by NLA Mortgages are very positive. Landlords provide a valuable source of housing at a time when tenants are finding it increasingly difficult to find properties to rent. Any mortgage products that encourage greater investment in the private-rented sector should be encouraged.` Paul Rockett, managing director of NLA Mortgages, commented: `Wider choice and better products for landlords mean that the overall buy-to-let market is improving. Although demand for finance still outstrips supply, the level of buy-to-let lending is gradually increasing giving property investors a reason to be optimistic.` Mon, 26 Sep 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1205Changes To Rules On Epcs Have Been Postponed Until Next April.http://www.twmproperty.co.uk/newsdetails.aspx?ID=1206Important changes to rules on EPCs have been postponed until next April. They could have been implemented as early as next week, but are now set to kick in on April 6, 2012. There have been few concessions in the much-delayed changes, but further guidance will be issued before next spring. The only real concession, as already revealed on EAT, is that the requirement for agents, both sales and lettings, to attach an EPC report to all particulars has been toned down so that only the first page of the EPC will now have to be attached. However, this is unlikely to please critics who point out that it will still mean having to produce and print another sheet of paper, and it will be almost immaterial as to whether it is printed on one or both sides. Otherwise, agents will have to prove they have ordered an EPC before marketing, and will have seven days to produce an EPC – or a further 21 if they haven’t managed to do so, despite trying. The changes in regulations will also mean that Trading Standards officers will have new powers to get agents to prove that they have commissioned an EPC when marketing a property without one. A number of ‘consequential changes’ to the role of Trading Standards, allowing them to enforce their new duties, will be made. Where the property’s address has been omitted from the particulars, it will not be necessary to put the address on the EPC. Mon, 26 Sep 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1206Britons Still Panning To Buy Propertyhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1207Despite a stagnant housing market and rising inflation, Britons remain upbeat about their chances of buying a new property – but not just yet. According to research from Santander Mortgages, one in four of the adult population plans to buy a property in the next five years. But only 6% of prospective buyers intend to buy in the next 12 months and just 7% within two years. The research, conducted among existing and non-homeowners, found that young people expect to be the most active over the next five years, with nearly half of 18 to 34-year-olds (48%) intending to buy a new home in the next five years. This compares to one in five 35 to 54-year-olds (21%) and 12% of those aged 55 or over. Almost two-thirds (61%) of those who intend to buy a property in the next five years are currently married or living together with a partner. Another survey, for property portal new-homes, suggests that nine out of ten 18 to 34-year-olds who don’t already own a property want to own their own home. But the YouGov survey also reveals that 73% of people also believe it is more difficult to buy a home now than 20 years ago, and 74% say it is harder than five years ago. The survey comes at a time when fewer new homes are being built than at any point since 1923 and a furious debate rages over the future planning system. Nearly five million people are now on local authority waiting lists, whilst first-time buyer numbers have fallen from 600,000 annually a decade ago to around 200,000 last year. Even during the recession of the early 1990s, first-time buyers numbered more than 400,000 each year. David Bryant, chair of the New Homes Marketing Board which sponsors the new-homes site, said: `These figures show that although young people want to own their own homes, it is becoming much more difficult. `Supply is vital to increasing both affordability and stability in the market and offering opportunities to current and future generations available to their predecessors. It is crucial that many more homes are built over the coming years. `In the short term we must find a way of addressing the short-term constraint – a lack of mortgage finance. Over the long term, though, we need a planning system that delivers enough land for the homes our country needs. `These figures put into stark contrast the ongoing debate about our planning system and demonstrate why the Government must stand firm and find a way of increasing housing supply.` Source: EATWed, 28 Sep 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1207Buy-To-Let Is `Propping Up` Lending Markethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1208Sunny figures from the Bank of England showing a rise in mortgage approvals could disguise the fact that buy-to-let is propping up the market, analysts said. The Bank of England yesterday reported 52,410 mortgage approvals last month, up 5% from July when the figure was 49,644. By value, loan approvals for house purchases rose from £7bn in July to £7.3bn. The number of approvals for remortgaging increased by 9.5% from 31,652 in July to 34,668 in August. By value, remortgage levels rose to £4.3bn in July to £4.3bn. But David Whittaker, managing director of buy-to-let specialist Mortgages For Business, said the increases in both new mortgage and remortgage approvals could have been largely driven by property investors. Whittaker said: `Whilst buy-to-let lending to individuals has been lumped in with the total figures, we all know that it’s most likely the professional investors who are making hay while the sun shines. `Remortgaging activity has probably increased because landlords have refinanced to expand their portfolios and house purchase figures have risen as they use this equity to snap up properties as prices sit idle and rents soar. `Until reporting on buy-to-let lending to individuals is published monthly instead of quarterly, it remains difficult to make real sense of these figures. `However, the likelihood is that the lending market is being propped up by the residential investment sector particularly with so much uncertainty surrounding the economy and first-time buyers largely locked out the of market.` David Brown, commercial director of LSL Property Services, agreed. He said: `While would-be buyers make take comfort from the up-tick, demand for buy-to-let has been a key driving force behind the improved lending picture in August. `Despite the recent withdrawal of quite a few cheaper rates in the last week, there are still more than double the number of buy-to-let products on the market compared to last year, and demand for finance from would-be investors remains strong. `With gross yields stubbornly remaining above 5%, demand at an all-time high, and average rents climbing as high as £713 per month, many investors are making hay while the sun shines and this has been reflected in an expanding buy-to-let mortgage market. `However, we don’t foresee a dramatic and sustained improvement in the level of lending across the wider market in the foreseeable future. The outlook for the economy has worsened in recent months, and many banks still must repay money they owe the government. Against this backdrop, it’s unlikely many will be able to vastly up their commitment to mortgage lending in the medium-term.` Meanwhile, building societies also yesterday unveiled a rise in their mortgage lending. Altogether £21.bn of mortgages were approved by mutuals in August, up 10% on July and up 17% on August last year. Source; EATFri, 30 Sep 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1208Cameron Unveils New Plan To Build 200,000 Homeshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1209The Prime Minister has highlighted fresh plans to revamp the council house right-to-buy scheme to generate extra cash to build more homes. David Cameron also said plans would to rolled out to hand house builders thousands of acres of land to build on now and pay for the land when homes were sold. Cameron pledged the Government would introduce bigger discounts for council tenants to revitalise the flagging right-to-buy scheme where take-ups have fallen since Labour reduced the discounts available. `We need to do everything we can to fire up the engine of the British economy,` said Cameron in an interview on The Andrew Marr Show. `We are going to make over Government land to house builders on the basis they can start building now and pay for the land when they sell homes. `That could build another 100,000 homes and create 200,000 jobs.` The scheme was first mooted in March by housing minister Grant Shapps in the hope of overcoming banks’ reluctance to lend for speculative housing projects. He added: `We are not stopping there, we are saying let’s bring back the right to buy council homes with proper discounts that Labour got rid of and let’s use that money to buy new homes for low rents for families. `That could provide another 100,000 homes and 200,000 new jobs.` Mon, 03 Oct 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1209Buying Now Cheaper Than Renting Across 90% Of Britainhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1210Falling house prices and increasing rental demand has made it cheaper to buy a property than to rent one in 45 of the 50 largest towns across Britain. The cost of renting is now 13% higher on average than the cost of owning, according to the latest research from property website Zoopla.co.uk. Zoopla.co.uk, which lists over half a million properties for sale or to rent in Britain, analysed the asking prices and rents for all two-bedroom flats currently on the market, comparing the rental cost to the cost of ownership based on servicing an interest-only mortgage at 5% p.a. Milton Keynes topped the list of locations where buying beats renting with current rents more than 39% higher than the cost of owning, leaving renters on average £2,544 per year worse off. At the other end of the scale, renting remains more cost-effective in Aberdeen, where it costs 9% more to own compared to rent, leaving owners on average £936 worse off. In London, where the average asking price for 2-bedroom flats currently stands at £430,608, buying still beats renting by a significant margin. The average monthly rent in the capital today is 28% higher than the cost of ownership, leaving renters paying an extra £5,964 annually compared to owners. Nicholas Leeming, of Zoopla.co.uk, commented: "With house prices down, low interest rates and sky high demand in the private rental sector, buying has never been a better option for those able to secure a mortgage. And with owners reducing prices further in order to achieve a sale before Christmas, there may well not have been a better time to buy in recent times." Tue, 04 Oct 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1210Housing Supply Is Down While Demand Is Uphttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1211This is according to the latest RICS UK Housing Market survey which showed that new instructions, which indicate supply levels to the market, fell back during September, with 5% more surveyors reporting supply of property fell rather than rose. Surveyors reported that fragile consumer confidence and continuing fears over the economy are causing many to think twice before putting their properties up for sale. Despite this, new buyer enquiries actually increased marginally during September; with 3% more chartered surveyors reporting an increase rather than decrease in demand (from -2%). However, although surveyors note that more mortgage products are becoming available, the large deposits required by lenders continue to act as a barrier for many would-be buyers. Stocks on surveyors` books rose slightly during September to an average of 68.9 (from 66.9). Meanwhile, the number of sales per surveyor over the three months to August also increased fractionally, from 14.1 to an average of 14.5 (on a seasonally adjusted basis). However, although the sales market remains challenging, respondents report that sales are still taking place on realistically priced properties. The house price balance remained unchanged during September, with 23% more surveyors still reporting prices fell rather than rose. Price expectations also remained unmoved from August; with a net balance of 23% anticipating prices will decline rather than rise over the next three months. Every part of the UK, including London, recorded some degree of negative price expectations during September. Only sales expectations continued to be positive for the coming months (+12%), although they fell back from the previous month`s reading (+16). Surveyors predict investors in some parts of the UK will now begin to return to bricks and mortar as a haven from the turbulent financial markets. Commenting, RICS housing spokesperson, Michael Newey, said: "Falling supply of fresh stock is indicative of general fears overhanging the economy, with many potential sellers preferring to stay put for now. `As a result, the UK housing market remains pretty flat with activity level generally subdued. `Although it is hard to see what will give the market a lift in the near term, the announcement of a further raft of quantitative easing from the Bank of England will help to at least keep mortgage rates down. `This, if nothing else, should ease the pressure on existing homeowners and limit the risk of a material pick-up in repossessions." Tue, 11 Oct 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1211Buy-To-Let Mortgages Back With A Banghttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1212The total number of buy-to-let mortgages on the market has risen for the third quarter in a row and is now 26% higher than in Q2, according to broker Mortgages for Business. The total average number of buy-to-let mortgage products currently on the market stands at 508 compared to 403 in Q2. There was one new entrant to the lending market over the last three months, taking the total number of buy-to-let lenders to 23. The rise in products and lenders is a result of the race to keep up with the demand from investors as property prices wane and rental demand grows. Despite growth in the number of owner-occupier mortgages and loans suitable for first-time buyers, demand for rental property continues to push rents higher and drives the growth of average yields. Average yields from standard buy-to-let mortgages rose to 6.3% in Q3, up from 5.8% in Q2. Complex buy-to-let deals, however, continue to provide the best yields for professional investors, although new products introduced over the last quarter aimed at investors looking to purchase smaller Houses in Multiple Occupation have caused yields for this type of property to fall slightly. The average yield for HMOs is now 9.3% – down from 10% in Q2. These new products have also caused average LTVs for HMOs to rise to 66% from 60% and average loan sizes to fall from £321,836 in Q2 to £292,969 now. Multi-Unit Freehold Block (MUFB) deals continue to provide good returns for investors, with yields rising over the last three months. Despite smaller properties being bought in Q3 – average loans are now £378,531 compared to £513,197 in Q2 – the average MUFB mortgage yield is now 6.9%, up from 6.6% last quarter due to the quality of the accommodation being high. Average LTVs for MUFB deals rose to 64% from 59% last quarter. David Whittaker, managing director at Mortgages for Business, said: `This is the third straight quarter in which the number of buy-to-let deals has risen in response to overwhelming demand from professional investors. Source: LATThu, 13 Oct 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1212We Need To Build At Least 200,000 Homes A Year, Says Shappshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1213Housing minister Grant Shapps has said that the Government needs to build more than 200,000 homes a year. Speaking on the Radio 4 Today programme, he said that building more homes is the only way to prevent further rises in rents and meet housing need. He outlined the Government’s three-pronged approach to stimulate house building, including reviving Right to Buy, releasing Government land on a ‘build now and pay later’ basis, and reforming the planning system. Shapps said: `We think there has to be a couple of hundred thousand new homes created each year – something in that kind of order. `Overall, you have to get all things working in tandem – there is not one single thing you can do to solve a housing crisis that has been building up over years and years.` Shapps said more details will be released next month when the Government publishes its housing strategy. Separately, speaking at the Housing Market Intelligence Conference, Shapps’ parliamentary private secretary Jake Berry said that the Government’s house-building plans would be scuppered if it was forced to pull the plug on its controversial planning reforms. Berry said that to get the economy moving, Britain must get building. Source: Mortgage Introducer Mon, 17 Oct 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1213Property Regains Favour With Investorshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1214The property market is now steadily regaining favour amongst investors as property focussed investment companies are proving a source of much sought after income. This is the view of the Association of Investment Companies which surveyed property managers for their views on the outlook for the sector. Income is a strong pull for the sector with yields currently averaging 6.3% but returns have been positive too, up 23% over the last three years to the end of September 2011 compared to the average investment company increase of 18%. Jason Baggaley, manager, Standard Life Investments Property Income, believes that: "Despite heightened volatility and unprecedented uncertainty resulting from the ongoing eurozone problems, UK commercial Real Estate continues to be one of the few asset classes to provide reasonable positive returns over the year to date (according to IPD)." Richard Kirby, manager, F&C Commercial Property Trust commented: "The property market has proved remarkably resilient in the face of slow domestic economic growth, fiscal austerity, a stalling of economic recovery overseas and the eurozone crisis. `There has been two years of sustained growth following a severe downturn. The initial sharp bounce-back, has been replaced by a year when performance has been largely driven by income. In September 2011, the annual total return was 8.7%, of which 6.9% was attributable to income, according to the IPD Monthly Index." In the UK property market, London continues to outperform other regions although this difference could become less marked. Kirby said: "London has out-performed the regions, helped by a stronger local economy, a more affluent population, tight new supply, its role as an international as well as a national centre and its relative resilience to public sector cutbacks. `Overseas investors have been attracted to this market, with London seen as a large, mature, transparent and liquid market. `This out-performance is expected to persist for the next year or so but the gap between London and the regions may narrow, particularly for City offices, given the turmoil in the financial and debt markets. Nor should prime property in regional markets be written off." Although the long term outlook for property is positive, investors must be prepared to weather any storms which may result from recent volatility. As Baggaley cautioned: "Some weakness in pricing is anticipated over the next few months as more stock is brought to market and it is likely that the softer prices are accentuated for secondary assets in poorer locations with greater investor demand continuing for relatively low risk assets. `Despite some softening in the prices for poorer quality stock, reasonable positive total returns are expected over the next few years for investors as yields compensate for any modest capital declines." Annabel Brodie-Smith, communications director, Association of Investment Companies added: "Property is regaining its place as a mainstay of a well-diversified portfolio. `Property is once more in demand for its ability to provide investors with attractive levels of income." Source; Mortgage IntroducerWed, 02 Nov 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1214Tenant Demand Shoots Up As First-Time Investors Enter Buy-To-Lethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1215Rental demand across the UK continues to soar, with properties snapped up within a record low of 12.7 days and five tenants competing for each property. Countrywide reported this morning that tenant demand shot up by 10.8% in the third quarter of this year, compared with the same period last year, and by 11.9% from the second quarter of this year. The group’s quarterly research into the private rental sector also found that the volume of viewings increased by 17.8% compared to the previous quarter, an annual increase of 8.2%. Demand from investors is also strong, with an increase in the first-time investor category. In Q3, 23.5% of all landlords were those investing in property for the first time, compared to 18.7% at the start of the year. Margaret Longden, co-managing director at Countrywide Residential Lettings, said: `Since the beginning of the year we have seen a significant increase in tenant demand for private rental property, and although there are still some slight fluctuations that can be linked to seasonality, we’ve found that the demand for rental property has remained incredibly high throughout the year. `We expect this demand to continue over the coming months, not only because many first-time buyers are struggling to save the substantial deposits currently required to purchase property, but also because a lot of people now see renting as a realistic alternative to home ownership, whether it be because they are awaiting further house price falls or because they are attracted to the flexibility that renting can offer.` Source; LATTue, 08 Nov 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1215Base Rate At 0.5pc For 33rd Monthhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1216The Bank of England Base Rate has been held at a record low of 0.5% for a 33rd month by its Monetary Policy Committee. The Bank also did not announce any increase in its policy of Quantitative Easing. Last month the Bank said it would inject another £75bn into the economy through QE. Lee Hopley, chief economist at EEF manufacturers` organisation, said: `There were unlikely to be any further announcements this month following last month`s decision to extend the Bank`s asset purchase programme. `However, ahead of the November inflation report the committee is likely to be looking at a much weaker set of growth forecasts, where the potential risks to the economy have increased significantly. `With growing turbulence in Europe, the possibility of further action can`t be taken off the table.` Last month, Bank governor Mervyn King said the financial crisis could be the worst the UK has ever seen. Fionuala Earley, UK consumer economist at Royal Bank of Scotland, said: `Steady as she goes, or not wanting to rock the boat? The Inflation Report will shed more light on the Bank`s interpretation of the situation. `But there is no doubt that the monetary authorities will be considering their policy options given the depleting arsenal of ammunition at their disposal, particularly in the face of the ongoing eurozone crisis.` Fri, 11 Nov 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1216Buy-To-Let Mortgages Shoot Up 16%http://www.twmproperty.co.uk/newsdetails.aspx?ID=1217The number of new buy-to-let loans shot up by 16% in the third quarter of 2011, while the value of mortgages advanced in the sector jumped 19%.- In the three months to September, a total of 34,500 buy-to-let loans were advanced, up from 29,700 in the preceding quarter. The value of lending totalled £3.8bn, up from £3.2bn. On both measures, buy-to-let lending was at its highest level since the final quarter of 2008, said the Council of Mortgage Lenders. Of the buy-to-let loans, 18,580 were for buy-to-let purchases – accounting for almost 12% of all house purchase loans. As at the end of September, there were 1,378,700 buy-to-let loans outstanding, worth £157bn, up from 1,296,700 loans worth £150bn 12 months earlier. Despite buy-to-let’s resurgence, the proportion of buy-to-let loans of the overall market is still much lower than the former peak in the first quarter of 2008, when 32,650 mortgages for buy-to-let property purchase accounted for 19% of all loans for house purchase. CML director general Paul Smee said: `Despite recent improvements, however, buy-to-let lending volumes are still only around one-third of their former peaks.` Nigel Terrington, group chief of specialist lender Paragon, said: `Landlords are reacting to high levels of tenant demand. `Our experience is that landlords are using their own cash and short-term borrowing to purchase and renovate property, and then remortgaging using buy-to-let finance. I expect this will be a theme of the buy-to-let market for quarters to come Source: LATTue, 15 Nov 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1217More First-Time Buyers Turn To Second Jobs To Raise Depositshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1218More than a quarter of aspiring first-time buyers are so desperate to raise a deposit that they will take out an unsecured loan. Research by Santander, out this morning, says that 27% will take on extra debt to raise the money for a deposit. Almost the same proportion (28%) are also taking up second jobs or working overtime to find the money. However, the research also reveals that while one in four current non home owners are hoping to buy for the first time within five years, one-third say they will never own a home. The average deposit for a first-time buyer is now £37,375 – or an average of 17% of the overall property value, says Santander. The figures are a stark contrast to data obtained from current home owners, who bought their properties on average 12.5 years ago. Then, just 5% relied on overtime or a second job, and only 4% took out a loan to raise their deposits. Savings (54%) are, as then, the most popular way of funding a deposit, but whereas it used to take 29 months to save for a deposit, it now takes 40 months. Another change is the proportion of potential buyers relying on inheritance money. This has almost doubled in the last 12.5 years, moving from 8% to 14%. Source; EATWed, 16 Nov 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1218Calls On Government To Prolong Stamp Duty Holidayhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1219Calls are mounting for the Government to extend its first-time buyer stamp duty holiday, due to end next March. The Council of Mortgage Lenders has added its voice to growing demands, saying that after the previous stamp duty concession ended in December 2009, the spike in sales before the end of the concession was matched by a corresponding slump. The CML has warned that the same thing could happen next spring. The CML said this would be `unhelpful, given the fragile state of market confidence`. The council is also calling for a long-term fundamental review of stamp duty and the way it is structured, but said this was less pressing than the need to avoid short-term negative effects by removing the first-time buyer concession. It said the concession is likely to be costing the Government only a modest sum in lost revenue, and that in any case, the cost of the concession is designed to be offset by the new permanent 5% higher rate of stamp duty on properties above £1m. The lion’s share of residential stamp duty yield (87%) comes from sales of properties of more than £250,000. In absolute terms, the revenue from stamp duty has fallen markedly from a peak of £6.7bn in 2007-8 to just over £4bn in 2010-11, but it would rise only modestly if the concession is allowed to expire as planned, since low transaction numbers are the primary reason for the decline. CML director general Paul Smee said: `While there is no clear evidence that the stamp duty concession has incentivised an increasing number of first-time buyers to buy, it is highly likely that there would have been fewer of them if it had not been in place. `The CML believes it would be a mistake to pull the plug on the concession, at least until the housing market returns to a firmer footing.` Source: LATFri, 18 Nov 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1219Londoner Would Need To Earn Nearly £90k To Get On Housing Ladderhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1220A Londoner could need to earn as much as £87,000 – triple the current average salary in the capital – to buy a property in London, according to a new report by the National Housing Federation. Home Truths London shows that the average property costs £408,384 and the average income is £27,128. A salary of £87,511 would be needed to obtain a 75% mortgage, while the borrower would also need to provide a deposit of over £100,000. NHF assistant director Kate Dodsworth said: `An entire generation has been locked out of a broken market. The battle to house London is being lost every day and the only answer is more affordable homes.` The report also shows that the average house price ratio to income is 15.1, meaning that Londoners would have to save every penny before tax for 15 years to buy an average-price property. Even buying a lower value home – in the bottom 25% of prices – would require an average salary of £46,000. Only four London boroughs have an average house price under £250,000, and only one has average house prices under £200,000. Dodsworth said: `London has become unaffordable for ordinary hardworking Londoners who have no realistic chance of buying their own house, triggering even greater demand for good social housing or a desperate search for a home in the more expensive private rented sector.` Mon, 21 Nov 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1220Rents Still Rising, But Rate Of Increase Slows As Tenants Feel Pinchhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1221Rents are still going up, but the rate of the increase is slowing as tenants show more signs of financial stress, LSL has reported. The company, parent to lettings chains Reeds Rains and Your Move, said that the average asking rent in October stood at a new high of £720 per month. However, the monthly rise was just 0.2%, which is the lowest monthly increase since February. Annual rental inflation also slowed to 4.1%, a decline from 4.3% in September. On a monthly basis, rents increased the fastest in the South-East and the East of England, where they rose by 1.5% and 0.8% respectively compared to September. Rents fell in three regions on a monthly basis, dropping by 1.4% in the North-East and the South-West, and by 0.8% in Wales. Over the course of the last year, London’s rents have risen faster than any other region. However, the monthly rate of increase slowed in London, with rents increasing to £1,030 a month, a 0.1% rise compared to September. Tenant finances took a turn for the worse in October, with 10.1% of all rent late or unpaid at the end of the month, compared to 8.6% by the end of September. However, despite the increase, the level remains below the previous 12 month’s average of 10.3%. In October, unpaid rent totalled £287m, an increase from the £243m unpaid in the previous month. LSL said that against a backdrop of rising unemployment, it expects tenant arrears to climb over the next year. Source: LATTue, 22 Nov 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1221New Mortgage Indemnity Scheme Could Hit Mainstream Homes Markethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1222The country’s biggest housebuilders and lending giants are to back the mortgage indemnity scheme for new-builds, announced in this week’s Coalition’s housing strategy, as critics of the scheme increasingly voice their concerns. Opponents say the scheme is an ill-thought-out interference in the market, and will mean taxpayers’ money being used to prop up the likes of Barratt’s house prices. The lenders are Barclays, HSBC, Lloyds Banking Group, Nationwide, Royal Bank of Scotland, Santander, and Yorkshire and Clydesdale Banks, who between them have 80% of the mortgage market. Other lenders may also join in the scheme. The 25 developers who have agreed to participate in the scheme include the UK’s biggest housebuilders – Barratt, Persimmon and Taylor Wimpey. Between them, they build some 60% of all new homes in the country. The Government hopes that other builders will want to participate in the scheme, which will be available in England only. Under the scheme, lenders will advance up to 95% LTV on new-build property for first-time and first-move buyers, but will also pay 3.5% of the value of the property into a ‘kitty’. This indemnity fund will pay out to the lender if a property financed under the scheme is repossessed and there is a shortfall. If the shortfall is more than 3.5%, taxpayers will pay the balance, up to a total of 9% of the total value. But the scheme has met with a backlash from all quarters. Critics say that if it all goes wrong, the first-time buyer would lose their deposit, the developer would lose their stake, the taxpayer would lose their stake, and the bank gets the house. Peter Ford, of estate agents Townends’ land and new homes department, said the indemnity scheme could hit the resale market on housing estates. He said: `There is the danger that by helping new-homes developers, builders and first-time buyers, this new scheme could have the unintended consequence of actually hampering those home owners trying to sell properties in locations near to sites benefiting from this Government support.` Others have warned that new-builds are the most vulnerable of all properties to price falls, and even with mortgage indemnity guarantee in place, buyers could still risk heavy losses. David Bulk, of brokers BGC Partners, warned that the indemnity scheme is `financial incompetence and economic suicide`. RICS spokesperson Michael Newey said: `The focus on new-build will not free up chains and may reduce demand for second-hand property.` Grenville Turner, chief executive of the UK’s biggest estate agency chain Countrywide, said: `It is disappointing to see a lack of measures to assist the vast majority of home movers. A stamp duty holiday for all home buyers up to £250,000 would have been a welcome boost to the resale market and should still be considered.` The Housebuilders Association called for the scheme to benefit smaller as well as larger developers. Meanwhile, the revived right to buy scheme would allow council house tenants of five years’ standing to buy their homes for discounts of up to 50%. Source: EATWed, 23 Nov 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1222Prime Properties Rising £74 A Dayhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1223Asking prices for prime properties are rising by £74 a day boosting prime homeowners’ wealth by an average of £20,000 since the beginning of this year, reveals figures from Primelocation. The average asking price for a prime property in the Uk is now £474,469 up by £20,193 or £74 a day since January. Asking prices for all properties have increased by £3,636 or £13 a day over the same period. The difference in asking prices between the two bands has widened significantly over the last quarter as prime properties have increased while the general market has declined. Nigel Lewis, property analyst at Primelocation, said: `Prime properties are driving the market at the moment leading price increases in areas where the market is robust and stabilising the market in areas where asking prices are dropping. `In Manchester for example overall asking prices have increased by 0.8% since the start of the year which has been driven by an 8.2% increase in prime asking prices.` London lead the country with a monthly appreciation in prime properties of 2.8% per month. With the average asking price for a prime London property at £1,181,670, the daily increase in prime London property price is £1,103. Source:Yuan PhoonMon, 28 Nov 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1223Ftb Affordability Hits 4 Year Highhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1224Affordability for first-time buyers has reached a four year high with borrowers needing £2,371 less to buy in October than they needed the month before. Research by FindaProperty.com said an improvement in the average income multiple offered by mortgage lenders coupled with a slight drop in asking prices has improved home affordability compared to average incomes. But it added those looking to take their first step onto the property ladder still have to find an average £48,782 deposit. This is only the third time in almost four years that the required deposit has dipped below £50,000. Average asking prices for first-time buyer properties (one and two bedroom flats and houses) are now £153,537, down 0.3% or £430 since September. Prices in this segment of the market have fallen consecutively for the past five months and are now at their Prices are also 0.4% or £659 lower than they were a year ago when the average asking price was £154,232. Across the UK, home asking prices decreased 0.1% (£317) between September and October taking the average home asking price to £219,535 while prices are 0.7% (£1,473) higher than a year ago. Samantha Baden, property analyst at FindaProperty.com, said: `First-time buyers will be encouraged to see that mortgage lenders are willing to offer larger loans and the gap between average earnings and the cost of a first-time buyer property has narrowed. `This is good news for those looking to get onto the property ladder but it’s also great news for the housing market as a whole as first-time buyers are a vital foundation for the entire property chain. `While the deposit that first-time buyers have to raise will be challenging for many, the reality is that house prices are proving resilient so for those fortunate enough to raise the necessary money it’s a great time to take that first step onto the property ladder.` Prices in this segment of the market have fallen consecutively for the past five months and are now at their lowest point in 2011. Source: Sarah Davidson,Tue, 29 Nov 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1224Government Gives Up On First-Time Buyers Stamp Duty Breakhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1225Chancellor George Osborne has not extended the Stamp Duty holiday for first-time buyers despite massive lobbying from the mortgage and estate agency industries. The decision has provoked fury, with critics saying that the Government had not meant what it said about kick-starting the housing market. The Government, however, says the Stamp Duty break has proved `ineffective` and it will end, as planned, on March 24. It intends to produce proof of how it has not worked. The RICS warned that ending the Stamp Duty holiday could distort the market with a mini boom and bust. It said: `By choosing to end the relief in four months rather than immediately, there is a clear risk that there will be a spike followed by a dip in the housing market as buyers rush to take advantage of the relief before March.` It said it was `hardly surprising` that the Stamp Duty break had failed to help first-time buyers, given the lack of affordable mortgages and homes on the market. In walking away from the Stamp Duty concession, the Government will instead concentrate on other measures announced in its new housing strategy, notably its controversial mortgage indemnity scheme on which it has now unveiled a few more details. The Chancellor revealed that the Government will underwrite the 95% mortgage scheme, which is available only for new-build purchases, by up to £1bn. The Autumn Statement said: `The Government will take on a contingent liability which will build up in line with purchases under the scheme, to a maximum of £1bn.` Under the scheme, taxpayers will be responsible for 5.5% of the value of each home purchased. Builders will put 3.5% of the value of each home sold under the scheme into a funding pot, which will be called upon by lenders if the properties are repossessed at a loss. The initiative aims to help 100,000 households purchase a new-build home with a 5% deposit. But it is unclear how many first-time buyers have succeeded in getting on to the housing ladder because of the current Stamp Duty holiday, although evidence is that they have melted away. According to the National Association of Estate Agents’ latest and possibly ill-timed report, the proportion of first-time buyers fell to just 16% in October from 23% the month before – despite the Stamp Duty holiday exempting first-timers on purchasers of up to £250,000. The Government says it will publish analysis showing that the tax break has not helped boost first-time buyer numbers. Calls to extend the break had come from various organisations, including the Council of Mortgage Lenders, Nationwide, Legal & General and others. The NAEA said there was little in the Autumn Statement to give comfort to the property industry, while Robin King, director of asset management firm Movewithus said the Chancellor had failed to tackle the `first-time buyer crisis`. He said the mortgage indemnity scheme would be of little help to most people, and said the Government should have tackled lending practices. Veteran estate agent Trevor Kent said that taking away the Stamp Duty break was a `kick in the teeth` for first-time buyers now faced with having to find £2,500 on top of their `inflated deposits`, simply for the `privilege of paying for a roof over their heads`. He said that it would make the difference between first-time buyers deciding to move or stay put. Peter Rollings, CEO of London estate agents Marsh & Parsons, accused the Government of giving with one hand and taking away with the other. He said: `The failure to extend the holiday for first-time buyers will undermine the Government’s own attempts to kick-start the first-time buyer market across the country. `While the new mortgage indemnity scheme may improve the accessibility of mortgage finance to many credit-worthy borrowers, first-time buyers will need to save for longer to pay the Stamp Duty bill as they move. `If the Government aimed to stimulate the national first-time buyer market in spite of the wider economic conditions, combining the extension of the Stamp Duty holiday with the new indemnity scheme would have boosted the chances of a significant increase in first-time buyer activity. In effect, Osborne is giving with one hand and taking away with the other. `But the Chancellor has also missed an open goal by failing to address the outdated and iniquitous Stamp Duty tax system.` CML director general Paul Smee said: `It is disappointing to see the Government withdrawing the stamp duty concession that currently benefits first-time buyers. `While the concession may not have stimulated additional demand, it was a significant help to home owners entering the market and its removal runs counter to the themes of the new housing strategy. It is likely that we will see a bunching of eligible first-time buyer transactions early next March to beat the expiry date on the concession.` Grenville Turner, chief executive of Countrywide, the UK’s estate agency and financial services chain, also said he was disappointed at the ending of the Stamp Duty holiday – and cast doubts on whether the mortgage indemnity scheme would really deliver. ?He said: `It is disappointing that the Chancellor did not take the opportunity to extend the Stamp Duty holiday for first-time buyers and has instead added another barrier for first-time buyers to get on to the property ladder. `A positive antidote to assist the vast majority of home movers and the resale market would have been a Stamp Duty holiday for all home buyers up to £250,000. `Whilst the measures announced in the Government’s housing strategy are a step in the right direction, they only scratch the surface of the fundamental issues that have restricted the housing market in recent years – housing supply and the high level of deposits required. `The prediction that 100,000 families will benefit from the Mortgage Indemnity Scheme may be optimistic, as we are yet to hear the detail of whether it enables lenders to offer cheaper rates.` Charles Haresnape, managing director of Aldermore Mortgages, said: `First-time buyers need as much help as possible and the reintroduction of Stamp Duty on purchases below £250,000 will be a significant disincentive.` Source:EAT Wed, 30 Nov 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1225Landlords To Grow Portfolios In 2012http://www.twmproperty.co.uk/newsdetails.aspx?ID=1226A fifth of landlords are looking to grow their portfolios over the next 12 months, research from Paragon Mortgages reveals. The average landlord’s portfolio size has increased from 12 in Q2 2011 to 13 in Q3. Only 8% of landlords considered reducing their stock over the next 12 months. When asked about their current portfolios the most popular property type that landlords owned were terraced houses, with 65% owning at least one. This was followed by 58% of landlords owning a flat, 48% a semi-detached house and 24% a House of Multiple Occupancy The research also said that investors were more positive about being a landlord with 77% agreeing with this statement and 57% rating the prospects for the private rental sector in the next 12 months as very good or good. John Heron, managing director at Paragon Mortgages, said: `This is an interesting time for the private rented sector as landlords are experiencing very high levels of tenant demand as other areas of the housing market come under increasing strain. `Looking at the year ahead, I am pleased to see that landlords are expecting to add to their portfolios as there is no sign that tenant demand is going to slow in 2012 and to ensure the private rented sector can withstand further demand, there needs to be increasing investment in rental stock.` Source: Yuan PhoonWed, 30 Nov 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1226Over 55s Not Planning Retirementhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1227Over a third (37%) of economically active over-55s have yet to make plans for their finances in retirement, according to the latest Real Retirement Report from Aviva. The eighth quarterly report reveals evidence which runs contrary to the accepted wisdom that says people become more financially organised in the final years before retirement. The figures show the typical over-55 only starts to actively think about their retirement income at age 48, but it takes another four years (age 52) before they start to worry or think seriously about it. The main reasons given for this failure to prepare are: a lack of money (47%), being hampered by family commitments (19%), and being too busy to think about it (8%). The financial implications of this can be serious, with more than two thirds (67%) of 65-74 year-olds also saying that failing to prepare financially for retirement is their biggest regret. The research also highlights the pressure the ongoing economic conditions are having on the finances of the over-55s. It found that ‘grey inflation` has risen to 5.4% in the last year, which has caused the average savings pot to fall 27% over the last year from £15,262 (December 2010) to £11,153 currently. At the same time average incomes for the over-55s have fallen 4% from £1,335 to £1,285 over the same period. The report found the typical person approaching retirement (55-64 years-old) has a smaller savings pot (£6,665), bigger debts (£79,598), and saves less each month (£28.06) than those aged over-75, whereas one year ago this trend was reversed. While 37% of economically active over-55s have yet to make any practical preparation for retirement such as researching the potential size of their assets or how best to invest them, the latest Real Retirement Report finds 39% say they have worked out how much income they will receive from their pensions/investments. In addition, 25% have discussed the financial and emotional implications of retirement with their partner, 23% have started to research pension/annuity options, 22% are looking to pay off any unsecured borrowing as quickly as possible, and 15% have spoken to a financial adviser about their finances. As a consequence of their financial situation, more of today`s over-55s are likely to end up having to work for longer. Following the end to the Default Retirement Age in October 2011, which means people can no longer be forced to retire by their employers, the report found 61% of over-55s say changes to their financial, employment, or personal circumstances could now see them working longer. More than a quarter (26%) of over-55s say they would keep working if they could find a job they could do when they are older, 18% would stay on with their current employer if they were offered flexible/part-time work, and 13% would carry on with the same job if their employer asked them to. Just 39% are resolute about the date they plan to retire. Clive Bolton, ‘at retirement` director at Aviva, said: "Everyone has seen their financial situation impacted over the last couple of years, but those approaching retirement are the most vulnerable as they should be looking to secure their financial future. It is of concern to find so many people are finding a lack of money is the main factor inhibiting them from planning their retirement finances. "As such it is noteworthy that even though the end to the Default Retirement Age has only just come into law, many of the UK`s over-55s are already thinking that they will be working for longer than they would have anticipated a few years ago. "Everyone`s financial circumstances have been affected by the recent economic downturn, but it is crucial that people still plan for the long term. `It is clear from this report that there are certain psychological barriers to saving we must take into account when meeting this challenge. Simply telling people to save more is no longer enough." Source: Nia Williams,Wed, 07 Dec 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1227Bank Rate Held At 0.5pc For 34th Monthhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1228The Bank of England Base Rate has been held at a record low of 0.5% for a 34th month by the Monetary Policy Committee. The Bank also decided against an increase in its policy of Quantitative Easing. In October the Bank said it would inject another £75bn into the economy through QE. The MPC expects the announced programme to take another two months to complete. David Brown, commercial director of LSL Property Services, said: `The MPC may have held interest rates at a historic low for yet another month, but it has not stopped the cost of borrowing from steadily rising in recent weeks. `Despite the low base rate Libor has been climbing. As a result, many lenders have increased the cost of new mortgage products. `With the ongoing eurozone crisis likely to continue to inflate banks’ wholesale funding costs, further mortgage rate rises could be on the cards. `When you factor in the toll taken on borrowers’ finances by the rocketing cost of living and sluggish wage growth, there is an increasing likelihood of a growing number of arrears cases in 2012, even without the MPC hiking interest rates.` Chris Parrish, group treasurer at the Yorkshire, said: `Today’s decision to leave the Base Rate unchanged at 0.50% was widely anticipated across the industry. `The Consumer Prices Index (CPI) inflation rate fell to 5.0% in October from 5.2% the previous month and although this is markedly higher than the Government’s target, the instability of the domestic and worldwide economies continues to be the principal factor in the MPC’s decision-making.Many economists now believe that the Base Rate will remain at its current level for the foreseeable future. "Variable rate mortgages will continue to remain popular whilst the Base Rate remains low.` Ben Thompson, managing director of the Legal & General Mortgage Club, said: "Although recent figures suggest the UK appears to be slowing in terms of output, today would have been too early for a further dose of QE. `With that said there will have been lots to discuss, not least the current plight of the Euro and its potential for wider contagion. `If the uncertainty and gloomy statistics continue, it won`t be long before another dose becomes very necessary, however it is not the time now for any early Christmas present." Source: Yuan PhoonThu, 08 Dec 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1228Rics Report Healthy Rental Yieldshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1229In the three months to October, 15 per cent more RICS members reported rental yields rose rather than fell. This is the seventh consecutive quarter that yields have increased and reflects the imbalance between rental demand and supply which is continuing to push rents higher. Turning to rental prices, 19 per cent more surveyors reported rents rose rather than fell, but the pace of growth was more moderate than earlier in the year. Supply of rental property to the market remains unable to keep up with tenant demand, but new landlord instructions did increase in the three month period to October, rising to a net balance of +10 per cent. This represents the fastest pace of rising instructions since the three months to April 2009. Surveyors note that some properties, particularly family homes, are now coming to the lettings market after unsuccessful sales campaigns. All this means that fewer landlords are opting to sell at the end of a tenancy agreement, with the percentage planning to do so moving to 2.6 per cent. From a regional perspective, rents in London picked up at the fastest pace, while they rose more modestly across the North, the South East, the Midlands, Scotland and Wales. Meanwhile, positive tenant demand across all UK regions is supporting the overall rental outlook. Expectations remain upbeat, with 25 per cent more surveyors expecting rents to rise rather than fall. The disappointing economic message communicated by the Chancellor in his Autumn Statement and the prospect of further job losses in some sectors and areas over those previously envisaged is likely to continue to underpin the residential lettings market in the near term, explains James Scott-Lee a spokesperson for RICS. `For the foreseeable future landlords will have a good if not increasing return on their investments in comparison with other main stream options.` Source; PropertyDrumWed, 14 Dec 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1229Buying Is Cheaper Than Rentinghttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1230Buying property is more affordable than renting in 47 out of 50 of Britain’s largest towns, figures from Zoopla has revealed. Renting is now on average 15% more expensive than owning due to the increasing cost of rent and low mortgage rates. This is up from 10% last year. High rental demand due to the difficulties potential first-time buyers are facing in getting financing and low mortgage rates are cited as the primary drivers for the difference. Last year it was cheaper to buy than rent in 40 out of 50 of the same towns Nicholas Leeming, business development director at Zoopla, said: `Although buying may be more cost-effective than ever compared to renting, many potential buyers aren’t able to take advantage because they can’t access mortgage finance. `The shortage of financing especially to first-time buyers has pushed demand for rental property through the roof. But for those lucky enough to be in a position to get a mortgage there may never have been a better time to buy.` Zoopla compared current asking prices and rents of over 78,000 two-bedroom flats on the market, comparing the rental cost to the cost of ownership based on servicing an interest only mortgage at 5% per annum. Thu, 15 Dec 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=123044pc Of Consumers Confident In Housing Markethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1231Nearly half (44%) of consumers said that now was a good time to buy a home compared to a quarter that said it was not, revealed the Building Societies’ Association’s property tracker. In March 2011 41% were positive about buying at the time and 19% were negative. About one in eight said they intend to buy in 2012, 63% said they had no need or desire to move in 2012 and 17% said that they would not be in a position to move. The main barriers to house purchase were cited to be raising a deposit, obtaining a large enough mortgage and fears over job security. Paul Broadhead, head of mortgage policy at the BSA, said: `Although there has been a stream of gloomy economic news recently, consumers` views on the housing market remain remarkably solid. `Government policy announcements such as the new build indemnity scheme indicate how important the housing market is to the UK economy, so the fact that confidence is not weakening is reassuring. `More is in the pipeline to help break down the barriers to home ownership, although this must always be tempered with a responsible approach to lending as home ownership is not always the most appropriate choice for everyone.` Source;Yuan Phoon Fri, 16 Dec 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1231660,000 Empty Homes In Englandhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1232There are now 662,105 empty homes in England, 1.8% more than= in 2011, figures from Halifax’s annual Empty Homes survey reported. The number, which includes all private and public empty homes including those vacant for less than six months, jumped from 650,127 in April 2010 to 662,105 in the same period this year. The number of long term private homes in England has however fallen to 292,313 its lowest level since 2008. Stephen Noakes, mortgage director at Halifax, said: `This research further demonstrates the significant impacts that empty homes have on the housing market and it is clear that action is necessary. `Long-term empty homes account for about 1.6% of all private homes in England. And at a time when first-time buyers are still facing numerous obstacles to getting on the ladder, it is imperative we look further at the issue as an industry.` Martin Ellis, housing economist at Halifax, added: `Whilst it is encouraging that the number of private homes in England that have been empty for at least six months has declined over the last few years it is still at a high level particularly in the context of the country`s ongoing housing shortage. `Locally the existence of empty homes remains a particular problem in a number of areas especially in the North West. In some cases the proportion of empty homes is more than double the national average.` The North West had the highest number of long term empty homes at 63,696, accounting for nearly a quarter of the total across England. A long term empty home is a property vacant for more than six months. Source: Yuan PhoonWed, 21 Dec 2011 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1232Bank Rate Held At 0.5pc For 35th Monthhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1233Yesterday The Bank of England Base Rate was held at a record low of 0.5% for a 34th month by the Monetary Policy Committee. The Bank also decided against an increase in its policy of Quantitative Easing. In October the Bank said it would inject another £75bn into the economy through QE. The MPC expects the announced programme to take another one more month to complete. Inflation remains well above the BoE’s target of 2% at 4.8%. Minutes of the MPC’s meeting are expected to be released on the 25th January. Ben Thompson, managing director, Legal & General mortgage club, said: `The Christmas period and start to the New Year kicked off with all manner of negative predictions and forecasts however there have been some glimmers of hope as well. `These glimmers are just that, and there is a very long way to go before any fiscal tightening is required. `However these pieces of good news, amongst other key factors will have allowed the Bank another month to fully consider all indicators in more detail before unleashing a further round of QE, which is widely expected to happen either in February or later in the year. `For now it`s a pause, and that at least means there is no major or obvious panic, all eyes for now remain firmly fixed on the eurozone.` Barry Naisbitt, chief economist at Santander, said: `It is the first meeting of a new year and with the members of the MPC having voted to extend the quantitative easing programme by £75 billion in October and that programme still running, the general expectation was that the MPC would again make no policy changes. `With the end of the quantitative easing programme and the February Inflation Report coming up, the MPC is likely to want to see how the economy is developing before making any further changes. `The very slow pace of growth over the past year and the recent weakening in activity indicators, in the UK and in other economies, will be of concern to the MPC but seemed unlikely to call for immediate action. `On the positive side, inflation has fallen in the past two months and these falls, together with the expectation of further reductions as we go through 2012, should ease the squeeze on households` real earnings.` Simon Gammon, head of Knight Frank Finance, said: `The continued turbulence in the eurozone is weighing heavily on economic sentiment, both there and here in the UK. `Greece is still facing large challenges, and there are now worries emerging about the credit ratings of some other eurozone countries, even France. `There is also the feeling of `wait and see` in the mortgage market, certainly among the high street lenders. Whereas usually the beginning of a new financial year would see a raft of keenly priced mortgage deals on the market, that has failed to materialise this month. `Instead, rates have remained the same, with many high street banks struggling to price their deals more competitively. In the background, Libor rates are also ticking up, despite the base rate remaining unchanged. `The lack of activity on the high street is making the deals offered by overseas banks, especially private banks, look even more attractive. There are some great rates available, but borrowers need to be cautious about how they apply for their loan. `The application process can be more onerous, but more than worth it if there is a good rate at the end of it.` Source: Yuan Phoon,Fri, 13 Jan 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1233Mortgages Most Afforable In 14 Yearshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1234Mortgage payments for a new borrower in the second half of 2011 were at their lowest as a proportion of disposable earnings for 14 years, Halifax research claims. Typical mortgage payments for both first-time buyers and homemovers at the long-term average loan to value ratio were 27% of disposable earnings in the fourth quarter of 2011, well below the average of 37% recorded over the past 27 years. Overall there was a modest fall in payments relative to earnings over the past year from 29% in 2010 quarter 4. Mortgage payments have nearly halved as a proportion of income in recent years from a peak of 48% in 2007 quarter 3. Halifax said lower house prices and reduced mortgage rates have been the main drivers behind the significant improvement in affordability. Regions The 12 UK regions have all experienced an improvement in affordability since mid 2007. Average mortgage payments as a proportion of average disposable earnings for a new borrower fell two-thirds in Northern Ireland and have nearly halved in both Yorkshire and the Humber and Scotland. Some 95% of local areas have seen a fall in mortgage payments as a proportion of average earnings of at least 25%. A clear north / south divide in affordability exists despite and the improvements experienced in all regions since 2007. Halifax said mortgage payments account for the lowest proportion of disposable earnings in Scotland (20%), Yorkshire and the Humber and Northern Ireland (both 21%). Payments are highest in relation to earnings in Greater London (35%) and the South East (33%). The ten most affordable local areas are all in northern Britain whilst the ten least affordable areas are all in the south. Martin Ellis, housing economist at Halifax, said:"The falls in house prices and cuts in mortgage rates in the last few years have resulted in a significant improvement in housing affordability for those able to raise the necessary deposit to enter the market. `Mortgage payments for a typical new borrower are now at their lowest in proportion to earnings since 1997. "The marked improvement in affordability was a key factor supporting housing demand in 2011 and the prospect of an exceptionally low Bank of England Bank Rate over the foreseeable future should maintain affordability at favourable levels in 2012. `This should support the market over the coming 12 months, helping to offset the impact of the downward pressures on demand from the ongoing difficulties faced by households regarding their finances and uncertainty about economic prospects." Source: Mortgage IntroducerMon, 16 Jan 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1234Uk Inflation Falls To 4.2pchttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1235The consumer prices index measure of inflation fell to 4.2% in December down from 4.8% the month before, figures from the Office for National Statistics show. The retail prices index measure of inflation which includes mortgage interest payments fell to 4.8% from 5.2%. The drop in the CPI rate was the biggest monthly fall since April 2009 and is the lowest rate since June 2011. The ONS attributed the drop to lower fuel prices and cheaper clothing. Cost of food was the largest upward force with food prices rising by 1.4%. Kevin Mountford, head of banking at Moneysupermarket, said: `The rising cost of living has had a major impact on UK household budgets for the last 12 months and signs that this is beginning to reduce is very welcome indeed. `However, despite inflation falling month on month, prices are still high. People still need to make sure they`re not paying over the odds for major expenses like car and home insurance, energy and other household bills.` Source:Yuan Phoon,Tue, 17 Jan 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1235Mortgages Performing Better Than In 1990shttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1236UK mortgages are performing better now than in the 1990s downturn says Moody’s. The ratings agency attributed the stronger performance to lower interest rates, stronger fiscal expansion and a smaller rise in unemployment afforded by greater wage flexibility. Greater household wealth, greater forbearance from lenders and more availability and flexibility in financial products also contributed to the stronger performance of UK mortgages. Moody’s said the ‘delinquencies’ would increase marginally as household budgets came under pressure from fiscal tightening and unemployment rises. The Office for National Statistics recently reported unemployment hit a 2-year high of 2.685m. Moody’s ratings agency said the current economic downturn in the UK is the worst since the 1930s with GDP levels still far below their pre-crisis levels some 45 months after the start of the downturn in 2008. The agency said the UK would be unlikely to get to the pre-crisis levels of economic output until 2013 which would break all existing records. The 1990-93 downturn was much shorter-lived, less than 40 months, and not as deep as the current downturn. In the 1979-83 downturn, the longest downturn on modern record in the UK, GDP returned to its pre-crisis level within 49 months. Moody’s said: `Borrower performance has held up well. Mortgage arrears have not risen as high as they did during 1990-93. `A lower interest rate environment has helped UK borrowers in the current downturn. Interest rates were considerably lower during 2008-11 than 1990-93. `We believe that UK lenders will continue to provide assistance to borrowers through forbearance, due in part to moral pressure from the government, which has provided banks with financial support through the crisis and in part helped banks avoid crystallising their losses prematurely.` Source; Mortgage IntroducerThu, 19 Jan 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1236Stamp Duty Holiday Expires In Marchhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1237Estate agents have issued a reminder to all first-time buyers that the Government’s holiday on stamp duty will come to an end in two months’ time, on Saturday 24 March 2012. Wendy Evans Scott, president of the NAEA said: `With only two months remaining, first-time buyers must act quickly to avoid paying stamp duty land tax on their first home purchase. Good communication with your solicitor can help move the process forward, helping you beat the 24 March cut-off.` After the tax exemption has come to an end FTBs will face a tax of 1% on house purchases between £125,000 and £250,000, and a 3% tax on purchases over £250,000. The NAEA’s recent figures show that the number of sales to FTBs edged up during November and December 2011 from 19% to 21% of sales per branch. However FTBs still represent a low percentage of overall property sales and NAEA data shows that the number of first-time buyers getting on to the housing ladder hit a three-year low in October, at just 16% of sales. Evans Scott continued: `First-time buyers are key to a healthy property market. We hope to see the number of people completing the purchase of their first home continuing to increase through February and March, as many FTBs are keen to purchase their first home before the tax exemption deadline. `However, it is impossible to predict what impact the end of the tax exemption will have on first-time buyers, particularly those on very tight budgets of under £250,000 for whom the 1% tax could be disastrous. `The Government will need to monitor sales closely and consider other action to support the fragile first-time buyer market.` Source: Nia Williams, 24 January,Tue, 24 Jan 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1237Families Pick Satellite Tv Over Life Insurancehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1238More families have satellite television than life insurance, figures from Aviva’s family finances report reveal. Half of families have satellite TV but just 40% have life insurance. The report also found only 13% of families had critical illness cover while 14% had insurance for their mobile phone. Similarly 13% had taken out an extended warranty on electrical items, more than the 10% who had taken out income protection insurance. The report found that over a quarter of families, 27% admitted they did not want to discuss their debts with their family. The only topic that made families more uncomfortable than finances was sex at 56%. Louise Colley, head of protection sales and marketing, Aviva, said: `No-one likes to dwell on poor health or mortality but by denying that illness or worse, people are stopping themselves putting measures in place to protect their loved ones. `Too many people assume that someone else will step in and look after their families if they weren’t there to provide for them but the reality is very different.` Colley added that people needed to ask themselves just how they would pay for their accommodation, their food and all the other costs of living, should they suddenly lose an income. She said: `While no-one likes to think about `what-ifs`, by not even considering these scenarios, people could be putting the future financial security of their families at unnecessary risk. `So many customers report feeling peace of mind when they take out life cover and knowing their affairs are in order, so we’d urge families to overcome their taboos and put protection in place.` Source: Yuan PhoonWed, 25 Jan 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1238Taxpayer-Backed Mortgage Indemnity Scheme Extendedhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1239The government-backed 95% mortgage indemnity scheme originally intended for first-time buyers of new homes is to be extended to all buyers of new homes costing up to £500,000. Housing minister Grant Shapps has renamed the scheme NewBuy Guarantee, to be launched officially in March. Mortgage providers are still working on the fine print of the scheme, which will allow them to offer large mortgages without having to bear all of the risk should the property fall into negative equity and be repossessed, with the mortgage indemnified jointly by developers and taxpayers. A big unknown is what the size of the take-up could be. Originally, Shapps had said that it would help 100,000 first-time buyers. Widening the scheme to home-movers with up to £500,000 to spend on a new home could entice far more than that number. The only criteria is that the scheme is open to UK buyers, and the properties must be their main residences. But there are calls for the scheme – to be available on both new-build houses and apartments – to be extended to existing homes, amidst concerns that it will boost the new homes industry at the expense of the secondhand market. Neither the mainstream housing market nor the private lettings sector earned a mention in Shapps’ latest ministerial statement, which concentrated on the new homes and social housing sectors, together with Right to Buy. Sean King, CEO of the property network Move with Us, said: `The NewBuy Guarantee scheme is welcome news for aspiring home owners, significantly reducing the deposit needed to buy their own home by around 75%. `On a home worth £120,000, buyers would only need a deposit of around £6,000 rather than as much as £24,000. In this case the £18,000 reduction could mean the equivalent of around three years of hard saving for a couple, both earning the average UK wage. `It is a pity that the scheme could not be widened to existing housing as we believe this new initiative from the Government could help those disadvantaged by tougher lending rules realise their dream of moving up the property ladder.` In further boosts to the new homes industry, Shapps announced that he is on target to have enough public land released by 2015 to build 100,000 new homes, and confirmed that he will allocate £45m to help unlock 18 of the most difficult stalled sites in the country to get workers back on site and 1,301 homes built. The funding forms part of the £420m Get Britain Building fund. In an earlier speech to local councils and house builders this week, Shapps laid out his stall, saying: `The pattern of the past has been to produce endless policies and initiatives that simply gather dust on Whitehall shelves and lead to inaction and inertia. But with the Prime Minister putting housing centre stage on the road to economic recovery, I am determined that we shall not repeat these mistakes of the past. `That’s why I’m pulling out all the stops for those who want to get on the property ladder so from March the NewBuy Guarantee scheme will be on hand to help people buying newly built properties with just a fraction of the deposit they would normally need.` Source: EATFri, 03 Feb 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1239Fsa Halts Sale And Rent Back Markethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1240The Financial Services Authority has today published a report that shows most sale and rent back transactions were either unaffordable or unsuitable and never should have been sold. Following a review of all regulated SRB firms, the FSA has referred one firm to its enforcement division while others have either stopped taking on new business or cancelled their permissions. Effectively, this means the entire SRB market is temporarily shut. Of the 22 firms reviewed, only nine had been active since the FSA began regulating SRB. Of the nine, five firms have now stopped doing SRB business, three have kept their regulatory permissions but decided not to use them for the foreseeable future, five have agreed to undertake past business reviews (which may result in consumer redress), and one will only purchase second-hand SRB contracts from other firms. If customers with existing SRB agreements have concerns about their agreement they should in the first instance contact their SRB provider or seek professional advice. The FSA had previously identified and published areas of concern regarding financial promotions targeting vulnerable consumers. It had also received intelligence from a lender alleging that one firm was arranging SRB transactions as Buy-to-let mortgages where the properties were purchased by the firm at below market value then inflating purchase prices to defraud the lender. Additionally, a study by consumer group Which? in February 2011 found advice to SRB customers to be `woefully inadequate`. In March 2011, the FSA commenced a review of the sales practices of the 22 authorised SRB firms. The most common failings identified by the FSA were: • SRB firms did not correctly assess appropriateness and affordability, and customers were not given enough time to consider the agreement; • Disclosure of the key facts of an SRB agreement did not follow the correct order, was insufficient and not given at the right time; Source: Yuan Phoon, 3 February, 2012Fri, 03 Feb 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1240New Landlords Pile Into Buy-To-Lethttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1241Buy-to-let returns are on the up – and new landlords are piling into the sector. According to Knight Frank agents, the average annual yield nationally was 5.4% last year – compared with a FTSE All-Share index yield of 3.8%. In separate research, the website FindaProperty says that in Greenwich, London, yields are 10.2% and in parts of East London are 9.4%. Meanwhile, Paragon says that almost one in four buy-to-let loans went to first-time landlords in the last quarter of last year – the highest level since 2006. Source: LATTue, 07 Feb 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1241Value Of Uk Housing Soars In Past Decadehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1242New research from Halifax shows that the value of the UK`s private housing stock rose by £1.8 trillion (84%) in the decade to 2011. The value of the housing stock at the end of 2011 is estimated at £3.9 trillion, up from £2.1 trillion in 2001 The increase of £1.8 trillion over the decade is equivalent to £68,500 per household - in the owner-occupied and private rented sectors - in the UK. The value of the UK private residential housing stock has grown at more than twice the rate of increase in overall consumer prices, with the retail price index up by 38% over the past ten years. The picture changes when looking at the value of housing stock since 2007, however. Over the past five years the value of the UK`s housing stock has declined by 5%, or £187 billion. This reflects the reduction in house prices since autumn 2007: a decline that is nonetheless more than compensated for by the significant increases in the half decade prior to 2007. Whilst the value of housing stock has soared during the past decade, so has the total value of outstanding mortgage balances, which have more than doubled (111%). The £1.8 trillion increase in the value of housing assets, however, outstripped the £655 billion rise in mortgage debt between 2001 and 2011. As a result, housing equity - the value of housing assets less the total value of outstanding mortgage balances - has increased by £1.1 trillion from £1.5 trillion in 2001 to £2.6 trillion in 2011. All 12 regions of the UK have seen a significant increase in the value of their private housing stock during the last ten years. The biggest increase was in Scotland where there was a 131% increase (from £113.5bn in 2001 to £262.6bn in 2011), followed by the north with a rise of 102% (from £50.5bn to £101.8bn). In Yorkshire and the Humber housing value has almost doubled to £236bn from £119bn in 2001 (98%). The smallest increases were in the South East (68%) and the West Midlands (71%). Martin Ellis, housing economist at Halifax, commented: "The value of UK`s housing stock has soared in the decade to 2011 notwithstanding the decline in house prices seen since autumn 2007, rising by 84% to just under £4 trillion at the end of 2011. `Whilst outstanding mortgage debt has more than doubled over the past ten years, the value of the housing stock has risen by more in monetary terms. `As a result, the total value of housing equity has shown a healthy increase. For most homeowners housing is still very much the main store of private wealth." Source: Nia WilliamsMon, 13 Feb 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1242Taxpayer Cash Boost For Lha Tenantshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1243An extra £49m of Government funding has been allocated to councils to help housing benefit claimants who are renting in the private sector. Nearly £6m of it is to go to councils in London. The funds are to help with the transition to new housing benefit rules until 2015, and are intended help Local Housing Allowance tenants and councils renegotiate their rents with landlords and find more affordable properties. Lord Freud, minister for welfare reform, said: `The cost of paying housing benefit in the private rented sector has nearly doubled in a decade, so it’s only right that we introduce new reforms to get these spiralling costs under control.` Source; LATFri, 02 Mar 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1243Uk Property To Remain A Safe-Havenhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1244The UK property market will prove ever more attractive to investors during a time of global economic and social uncertainty, claims the British Property Federation. A recent Development Securities commissioned report showed foreign ownership of London had reached 52% of total floor space, up from 8% in 1980 and 45% in 2006. Liz Peace, chief executive of the BPF, said: `It is entirely logical that investors should look to the UK – a mature, transparent and liquid market that provides a genuine diversifier from alternative, well-recognised investment sectors.` And Brian Sloggett, managing director of GL Hearn, added: `I believe that the combination of some major structural changes taking place in retail delivery, our town and city centres and the property holdings of banks, combined with the emergence of more realistic pricing and political support means that we are now entering a period of great opportunity to selectively invest in UK property. `The long term outlook based on population growth political stability and cultural diversity provides a solid base upon which intelligent investments can be made. `At GL Hearn we have invested in key areas that will enable our clients to make the right decisions.` Source: Yuan PhoonWed, 07 Mar 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1244Buying Is Cheaper Than Rentinghttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1245The cost of servicing a mortgage is now cheaper than renting in 42 of the top 50 towns and cities in Britain, equating to 84% of the country. Zoopla’s figures for February represent a slight drop from three months earlier when was cheaper to buy than rent in 47 of the top 50 towns – or 94% of the country. Despite the fall over the past quarter, buying remains cheaper than renting today across the vast majority of the country and it is cheaper to buy now than rent in more locations than at the same time last year. The shortage of mortgages and difficulties faced by first-time buyers in securing a deposit has increased demand for rental property and led to renting in Britain now costing 16% more on average than buying, up from 11% this time last year. The average monthly rent in Britain has come down slightly by £9 on average over the past 3 months to £1,470 per month in February 2012. Meanwhile asking prices have dropped by £6,500 on average over the same period to £255,037. Swansea, Oldham and Cambridge top the list of places where it currently still pays to rent rather than buy with rental discounts ranging from 4.6% to 8.4%. In contrast, it make most sense to buy in Milton Keynes where renting is 38.8% more expensive than servicing a mortgage, leaving renters £2,580 per year worse off on average. York and Preston also offer buyers better deals to buy than rent with renters paying around a third more on average in both places. In London, despite the high cost of buying, it still beats renting with the average asking price for a 2-bedroom flat in the capital currently at £452,387, while the average rent for an equivalent property is £2,422 per month, making renting 29.6% more expensive than owning on average. Commenting, Nicholas Leeming of Zoopla.co.uk, said: `Despite a recent increase in first-time buyer activity, demand from renters remains strong and is keeping rental levels at historic highs. `This, along with historically low borrowing costs, makes it as good a time to buy as it ever has been. However many buyers are still unable to take advantage of these conditions because of their inability to secure a mortgage.` Source:Nia WilliamsFri, 16 Mar 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1245Consumers Positive About Buyinghttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1246Almost half (44%) of consumers think now is a good time to buy property while the number of people predicting an uplift in house prices this year rose to 41% in March. The Building Societies Association said consumer sentiment had increased markedly since December when just 33% thought prices would rise. Across the UK, consumers in the South East are the most bullish with 53% forecasting that property prices will go up and 14% saying that they will fall. Those in Wales are the least optimistic on price with a fairly even spread between expectations of an increase (30%), a drop (29%) and no change (22%). Despite these improvements the BSA said it was clear that significant barriers are still in the way of aspiring home owners and growth in this sector, not least rising fears over job security. This was cited as a barrier by 56% of all respondents, up from 54% in December 2011. This concern was most acutely felt amongst women (59%) and across 45-54 year olds of both genders (65%). The number of people who saw stamp duty as a barrier also rose, up from 10% to 12% between December 2011 and March 2012. This may be a reflection of the psychological impact of the termination of the first time buyer stamp duty holiday at the end of this month, the BSA said. Of all respondents, 17% said that they were looking to buy property in the near future. This is made up of first-time buyers (6%), previous owners looking to move to another home (8%) and Buy-to-let investors (3%). The strongest intentions to buy are seen in Wales, where 23% of respondents said they were looking to buy, particularly first-time buyers (14%). In London 22% of respondents intend to buy. By contrast, the lowest intentions to buy were recorded in the West Midlands and the East of England with just 13% saying they intended to purchase property in the near future. Describing their intentions, 17% of the under 35s surveyed said that they were looking to buy their first home. Over six in ten of those surveyed (62%) said that they already owned their own home. Of these 84% said that they had no intention of moving in the near future. There are indications that a proportion of this group will not be moving as they currently face significant barriers obtaining a new mortgage or raising a deposit. It is possible that this may also reflect little or no equity in their current property for some. This group were particularly concerned about job security, with 62% of citing this as a barrier, compared to 44% of owners who were looking to buy property sometime soon. Paul Broadhead, head of mortgage policy at the BSA, said: "The majority of home purchases are made because a consumer wants rather than needs to move house. `This means that consumer sentiment is a useful leading indicator of future sales activity in the housing market. "It is good to see some positive indicators, price change or an expectation of price change can stimulate activity although inevitably it isn`t good news for all. `Some commentators are waiting for the market to return to normal, I am not one of them. `After all, exactly what is normal? If you look back through the last few decades it has been a number of different things. "I believe that both consumers and lenders are currently in a period of adjustment to a new normal.` Broadhead said `the new normal` would be a market characterised by broadly flat or slow price increases. Transaction volumes will also be lower than over the past ten years, saving to buy will become commonplace and a proportion of the population will prefer to rent. Broadhead said it was wrong to assume that everyone who is renting is doing it because they have to. And he added: "Having a mixture of quality housing with a mix of tenures is a healthy position for the UK and it leads to vibrant and inclusive communities. `Building societies and other mutual lenders are doing their bit with some increasing lending generally in 2012, a rise in the number of higher loan to value ratio mortgages for first-time buyers plus participation in buy-to-let and alternatives such as shared ownership and self-build. `It will be interesting to see whether the Government`s NewBuy Guarantee will stimulate house building, I hope it does, we need more homes." Source; Sarah DavidsonTue, 20 Mar 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1246The London Property Market Plunged Into Meltdown Yesterday.http://www.twmproperty.co.uk/newsdetails.aspx?ID=1247The effects were seen in the rapid wake of the Chancellor’s bombshell announcement that purchasers using companies as the buying vehicles of £2m-plus properties would be stung by 15% Stamp Duty as from midnight. In London, buying via company vehicles is extremely common. Within hours, London agents were reporting chaos, as deal after deal fell through. Staff at some upmarket agents, including Savills - which last week revealed it has 50 properties on its books at £15m or more - were working until midnight trying to get deals through before the deadline. First to warn was Ben Everest, partner at LDG in the West End. He said that there had been a ‘dramatic’ effect, with deals in the region of £2m-£2.5m being urgently re-negotiated downwards. By 6pm, Ed Mead, director of Douglas & Gordon, said there had been fall-throughs across London. He said: `It has been less than seven hours since the Chancellor delivered the Budget and the prime central London property market has gone into meltdown. `I don’t think anyone has quite clicked that many of the properties at this price level are bought by a company through personal choice rather than a way to avoid Stamp Duty taxation. `Most property companies buy for development through companies and they’re pulling out too. `There have been fall-throughs seen across London by several estate agents, with company buyers unwilling to pay this absurd 15% tax. `A few buyers have tried to off-set this additional cost by decreasing their offers by as much as 10%, which has caused vendors to pull out. `The repercussions of these fall-throughs has caused widespread chaos, with property chains being broken and deals that have only a few days to complete falling through.` He went on: `Why are we slamming doors in the faces of international buyers who have built London into what it is, and who have been spending billions whilst here?` He said: `A sledgehammer has been used to crack a nut, but at what cost?` Mead warned that if deals continued being hit `in a very important market that uniquely is driven from the top down`, the effects could be catastrophic. Source; EATThu, 22 Mar 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1247Rent Rises Drive Strong Yieldshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1248A 4.8% growth in the average monthly rent led buy-to-let investors across the UK to achieve a rental yield of 6.1% in 2011, according to new figures from BM Solutions. Strong demand for rental properties increased further last year, with the average monthly rent climbing to £716 in 2011 from £682 in 2010 as a result. While 2011 rental yields were marginally lower than the previous year (6.2%), they remained buoyed by continued rental increases across the UK. Regionally, the highest rental yields in 2011 were in the North (7.0%), North West, Yorkshire and the Humber (both 6.3%), Wales (6.0%), West Midlands and the East Midlands (both 5.9%). Greater London (4.8%), South West (5.0%), South East (5.2%) and East Anglia (5.3%) all registered yields below the UK average. Phil Rickards, senior manager, BM Solutions, said: "There is a very healthy demand for rental properties across the UK right now, which in part may be driven by the costs associated with buying a home: costs which, for some, will only increase as the stamp duty holiday comes to an end. `Average gross yields on a Buy-to-let property have been just over 6% for the past two years, driven by growth in rental values. "However, with house prices likely to remain broadly flat again this year, buy-to-let landlords can again expect little capital gain on their investment in 2012." While the national average monthly rent increased by 4.8% overall, there were more significant gains in regional areas. The largest increases were in East Anglia (8.0%) and the North (6.9%). The South East and Greater London recorded rises of 5.8% and 5.6% respectively. In contrast, rents increased by less than 1% in Wales (0.1%) and Scotland (0.7%). Source: Nia WilliamsTue, 27 Mar 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1248Brits Sit On £1tn Goldminehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1249Brits have accumulated a record breaking wealth of physical assets, while income and savings levels reach historic lows, says borro. Figures from borro revealed that the total physical wealth of assets excluding property and other investments stood at £1tn between 2008 and 2010. This is an increase of £51bn between 2006 and 2008, reflecting the asset spending boom in the lead up to the recession, as well as continued spending throughout the downturn. In contrast the average UK adult now has only £1,574 in savings, representing a 15% decrease from 2011 and 27% have no savings at all. Paul Aitken, chief executive officer at borro, said: `Physical wealth in the UK has reached incredible heights and people are continuing to spend in this area, albeit not at the same pre recession levels. `As people’s saving deposits have decreased we are seeing a nation of asset rich, cash poor adults emerge. The report’s findings reaffirm the trends we are witnessing at borro. `More people are realising that they hold a wealth of assets that they can use to access finance – either to fund a business opportunity like the majority of our customers do or to cover temporary cash flow issues. Source; Yuan Phoon,Fri, 30 Mar 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1249Cost Of Owning A Home On The Risehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1250The cost of owning and running a home is at its highest level since 2008, despite a 23% drop in average mortgage payments. The annual Halifax review of the cost of owning and running a home shows the typical annual cost associated with owning and running a home in the UK stood at £9,393 in January 2012, the highest average annual total since January 2008 (£9,406). Over the past year, the cost of housing has risen by 2.7% (£243) from £9,149 in January 2011. The increase, however, was less than the 3.6% rise in consumer prices over the same period. In monetary terms, the largest upward pressure on housing costs came from a £218 rise in gas and electricity bills, accounting for 89% of the total rise. The increase in gas and electricity was more than seven times the rise in the cost of home and garden tools (+£31), the second biggest contributor to the increase in housing costs. Nine of the 11 housing expense categories tracked have risen in cost over the past year. In contrast, the most significant downward pressure on costs for homeowners came from mortgage payments, which fell by an average of £66. Housing costs have risen across all UK regions since January 2011. Nonetheless, just two of the 12 regions - Northern Ireland and Wales - saw costs rise at a faster rate than consumer price inflation (3.6%). Those living in the East Midlands and London saw the smallest rises (both 1.9%). Unsurprisingly, total annual costs of owning and running a home are highest in London, at £11,843. This is 52% (£4,051) higher than in Northern Ireland (£7,793), which has the lowest costs. The typical annual mortgage payment has fallen by 23% (-£1,036) over the past four years from £4,521 in January 2008 to £3,485 in January 2012. This decline reflects both the significant fall in mortgage rates and the reduction in house prices over the period. The cost of each of the other 10 housing expenditure categories tracked has risen since 2008. Utility bills recorded the biggest increase (50%), followed by home and garden tools (28%) and home maintenance (20%). Consumer prices, in general, increased by 15% over the period. Martin Ellis, housing economist at Halifax, said: "The typical costs of owning and running a home has increased over the past year, returning the overall level to that of four years ago. `This has happened despite the substantial fall in mortgage payments over recent years, as all the other costs associated with home ownership have risen. `The prospect of declining consumer price inflation through much of 2012 may help the costs associated with running a home to ease as well, providing some welcome relief to homeowners." Source: Nia WilliamsWed, 11 Apr 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1250The Fall Of Interest-Onlyhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1251Ben Thompson, managing director of Legal & General Mortgage Club, looks at the shape of things to come as regulatory intervention strikes interest-only mortgages. "At the peak of the housing and mortgage market five years ago interest-only mortgages accounted for over one in every three new mortgages agreed by lenders. `Although interest-only had been significantly higher through the 1990s, in those days lenders and borrowers were far more disciplined in terms of repayment vehicles. `Typically a borrower took an investment such as an endowment alongside their mortgage and planned their own strategy to repay this debt at the end of the original term. `Times change of course, as do house prices and lifestyle requirements. `As house prices started to rise in earnest after the turn of the millennium many consumers found it increasingly hard to get onto the property ladder without taking reduced interest-only mortgage payments and likewise the gap on the ladder to move onto the next rung was often also so large that the subsequent new mortgage payments proved too tricky on a full repayment basis and so many relied either in part or entirely on interest-only to ease the pain as well as accommodate their housing needs. `Along came the credit crunch, a deep recession and regulatory intervention and the rules changed again. `We now see around one in ten to one in twenty new mortgages applied for on an interest-only basis, meaning capital repayment mortgages are now at their highest levels since the early 1970s. `This appears to be the shape of things to come. `We may in time see some sort of `interest-only niche` open up, where certain lenders who are prepared to invest in processes to accommodate a slightly more flexible approach to interest-only may become more of the norm - it may be that some interest-only mortgages in the future are charged at higher rates than conventional repayment mortgages. `What is clear is that interest-only is certainly not for everybody and it is good that there has been some adjustment downwards. However that adjustment has now swung too far and we would expect in time the market settles at slightly different levels. `For now if you are a borrower, make yourself aware of the market changes, especially if you are on interest-only now. Speak to an independent intermediary as well as your existing lenders and assess your options for now and for the future. `See if your mortgage conditions allow you to overpay each month if you can afford to do so - if you can, this will improve your overall position and start to create more equity in your home." Source: Yuan PhoonWed, 11 Apr 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1251Remortgage Enquiries Surgehttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1252The surge in enquiries is driven by consumer fears that lending criteria was getting tighter and higher rates that were being pushed by lenders. Karen Barrett, chief executive of unbiased, said: `The Financial Services Authority is moving to clamp down on irresponsible lending but their proposals, published at the end of last year, will affect millions of existing homeowners who are looking to obtain a better rate when their current deal ends.` Fears were raised last week when the Financial Services Consumer Panel warned that borrowers could find it hard to remortgage once new rules from the FSA’s Mortgage Market Review come into play next year. Barrett continued: `New rules will affect the 11.2m households stuck on interest-only deals, as well as more than a million borrowers who have been hit by the recent spate of lenders announcing mortgage rate increases. Last week Co-op became the latest bank to push up mortgage payments joining the Bank of Ireland, Halifax, Clydesdale and Yorkshire banks in raising its standard variable rate. `This is a further indication that more lenders may follow suit and so it is now more important than ever for people to shop around for a better deal. High loan to value deals may be harder to find but we have seen some lenders re-enter the market at the 90% loan-to-value mark. `Homeowners should continue to seek guidance from a whole of market mortgage adviser to ensure they are aware of the current deals on the market and how to mitigate any substantial rate rises. `A mortgage adviser will recommend the best deals available and give a clear overview on how to go about remortgaging. They will also ensure you are aware of the redemption charges and arrangement fees involved in switching your mortgage.` Source; Yuan Phoon,Thu, 12 Apr 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1252Key Worker Housing Affordability Improveshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1253Research from the Halifax shows that housing affordability has improved considerably for key public sector workers since house prices peaked in September 2007. The Halifax Key Worker Housing Review for the period to March 2012 shows that two in five towns (41%) are now affordable for the average key worker, based on the ratio of average house prices to average earnings. In September 2007 homes in just 3% of UK towns - 12 towns in total - were affordable for key public sector workers, demonstrating a significant improvement since 2007. The Halifax Key Worker Housing Review tracks housing affordability for five groups of public sector workers: nurses, teachers, police officers, fire fighters and paramedics in 450 post towns (including 32 London boroughs) across the UK. Housing affordability is defined as the ratio of average house price to regional average earnings of key workers; where the ratio is below 4.0 housing is deemed affordable, above 4.0 is unaffordable. The calculation is based on a single income and is therefore conservative according to the Halifax. Martin Ellis, housing economist at Halifax, said: "Housing affordability for key public sectors workers has improved significantly across the UK since house prices peaked in 2007. `More than four in ten towns are now affordable compared with just 3% in 2007. The greatest concentration of this improvement has been in northern England, Wales and Scotland. `There are still considerable affordability issues for key workers in London and the South East.` Ellis said a combination of house price declines and growth in earnings has contributed to this improvement in affordability although the past year has had little impact on the improvement. All five key worker occupations analysed have seen large improvements in affordability during the period. In 2007, Wishaw in Scotland was the only affordable town for nurses. However, there are now 113 towns (25%) that are affordable for nurses. The most considerable gains have been for teachers (both primary and secondary) with an increase in affordable towns from 6% in 2007 to 47% in 2012, followed by police officers (15% to 51%) and paramedics (23% to 56%). Over the past year, 32 towns have become more affordable for key workers, but 15 have become less affordable - resulting in a 4% increase in the number of affordable towns overall. Peterborough, Lincoln, Morpeth, Glasgow, Clacton on Sea, Coventry and Wakefield are amongst those to become affordable over the year. Hinckley in Leicestershire, Newcastle upon Tyne, Dover and Beverley in East Yorkshire are among those that have become less affordable during the period. Wales is the most affordable region in the UK for key workers, with an average house price to key worker earnings ratio of 3.6 in 2012. The North (3.7), Yorkshire and the Humber (3.8) and the North West (3.8) follow closely behind. By comparison, in 2007, no region had a house price to earnings ratio below 5.0. Unsurprisingly, Greater London (7.6) and the South East (6.6) are still the least affordable regions for key workers. Source; Mortgage IntroducerMon, 16 Apr 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1253New Official Statistician`s Survey Shows House Prices Risinghttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1254The latest Government house price index has claimed that the average house price in February stood at £224,473 – a rise of 0.2% over January. For the first time, the index has been published by the Office for National Statistics and not by Communities and Local Government. But, just as the CLG index has done in the past, the ONS survey puts the average house price considerably above that of the other ‘official’ house price index, the Land Registry. The Land Registry’s average house price in England and Wales for February was £161,588. According to the latest ONS survey, house prices rose by just 0.3% in the 12 months to February. It also says that in February, first-time buyers paid 1.3% more for their properties than they did a year ago. For existing home owners, prices were unchanged. A very patchy picture showed house prices in Northern Ireland down by 9.7% in the year to February, but up by 1.7% in London, by 1.2% in the South-East, by 1.1% in Scotland and by 0.8% in the South-West. In all other regions, house prices were down. In terms of countries within the UK, house prices in England stood at £232,485 in February, in Wales at £151,839, in Scotland £177,354 and in Northern Ireland at £136,263. Separately, website Zoopla has said that values of residential homes in Britain fell by 1.7% during the first quarter of this year to stand at £215.436. It means that the average house value is now 2.8% lower than a year ago, says Zoopla. The website’s data is based on valuations of properties in the UK, not just sales figures. It claims that even property values in London have been falling over the last year, by 2.1%. Source; EATWed, 18 Apr 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1254Landlords Increase Portfolio Sizeshttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1255Landlords increased their portfolio sizes by 1.8 properties over the first quarter of 2012, research commissioned by Paragon Mortgages reveals. The report produced by BDRC Continental showed that the average portfolio size was 10.8 properties accommodating 1.3 tenants per property. Of those landlords that took part in the survey, a fifth said that they expected to purchase property in the next 12 months. However around 35% of Paragon Mortgages customers said that they expected to add to their portfolio in 2012. John Heron, director of Paragon Mortgages, said: `It has been a steady and progressive start to 2012. Whilst landlords are still benefitting from attractive market conditions, there is still a long way to go to meet the increasingly high level of tenant demand. `More investment across the private rented sector is needed during the coming year to help to meet this demand.` Source: Yuan PhoonThu, 03 May 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1255Cheaper To Rent Prime Uk Propertyhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1256It costs £1,238 per month to rent the average prime property, some £369 less than monthly mortgage repayments, figures from PrimeLocation reveal. In London the average rent for a prime property in the capital is £3,943 compared to an average mortgage cost of £4,339. But PrimeLocation said that it was likely that prime property was going to become more affordable to rent in the coming months. The post-recession prime market has remained comparatively strong as house/rental? prices have risen by 9.3% since January 2008 when the downturn began. Nigel Lewis, property analyst at PrimeLocation, said: `It’s clear that across the UK the more expensive a home is, the better value you get by renting rather than owning it despite the low cost of borrowing at the moment. `London is still comfortably the most expensive market for prime renters as demand for property in the capital continues to grow. The prime rental market is very healthy so for those who are looking to rent a property at the higher end of the market, now is an excellent time to be shopping around.` Average mortgage costs based on an 80% LTV rate and an interest rate of 1.99% over a 25 year term. Source: Yuan PhoonWed, 09 May 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1256Uk Interest Rates Held At 0.5pchttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1257The Bank of England has continued to hold UK interest rates at a record low of 0.5% and is not extending its quantitative easing programme. QE is the Bank`s scheme to boost the economy by buying bonds. In February, the Bank`s monetary policy committee boosted the stimulus to £325bn. Rates have been 0.5% for three years, despite persistent inflation. In March, the Consumer Prices Index rose to 3.5%, from 3.4% in February. Retail Prices Index inflation fell slightly to 3.6% from 3.7%. Ben Thompson, Legal and General Mortgage Club managing director, said: `With a largely disappointing month behind us for the UK economy and with the Euro debacle continuing there is little doubt that there will have been much debate around whether or not to kick off another round of Quantitative Easing. `However with inflation remaining stubbornly higher than expected it is unlikely the Bank will extend this until it is explicitly clear that it has to - this may even be as early as next month and we shall see. `Closer to home there will be relief for the 8 million or so mortgage borrowers that now hold some sort of floating or variable mortgage rate. `More than a million borrowers will have seen an increase in their Standard Variable Rates this year despite a record 39th consecutive month with Bank Base Rate unchanged at 0.5%. `With households squeezed by depressed wages, increased costs of living and higher taxes, this decision to hold rates will feel like welcome relief.` And Grenville Turner, group chief executive of Countrywide, said: "We would expect base rates to move upwards once signs of any improvement in the health of the UK economy are evident. `With the UK in a technical recession and a number of indicators pointing towards a weak economy, it is not surprising that the Bank of England have decided to hold base rates at 0.5%. `The decision will be disappointing for savers struggling to gather a deposit. `Unfortunately, it’s also unlikely to help new borrowers and mortgage prisoners, who have recently seen their mortgage rates increase sharply regardless of the stable base rate. `So despite interest rates remaining at a record low, deposit affordability and mortgage accessibility are the toughest hurdles for potential buyers and homemovers to overcome. `These ever present hurdles are having an impact on the housing market and the number of house sales that will be completed this year.` Source; Mortgage IntoducerThu, 10 May 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1257Repossessions May Not Be As Bad As Fearedhttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1258Official forecasts for the number of repossessions this year may be reduced this summer, down from the initial prediction of 45,000. The Government was quick to take credit. Although the number of mortgage borrowers in the most serious arrears has increased, overall figures are unchanged from a year ago. The Council of Mortgage Lenders says that the number of repossessions in the first quarter of 2012 was 9,600, the same as in the first quarter of 2011, breaking the recent trend of year-on-year increases in repossessions. Repossessions in the first quarter were higher than the 8,700 that took place in the fourth quarter of 2011, but the CML says his represents a normal seasonal pattern. Overall, the repossessions landscape appears stable for the time being. The CML also says that through the first quarter of the year, there was a modest improvement in the total number of mortgages in arrears. The number of mortgages with arrears of 2.5% or more of the outstanding balance fell to 157,800 (1.4% of all loans), down from 160,300 at the end of December 2011 and 170,500 at the end of the first quarter of 2011. Within the total number of arrears cases, the largest improvements were in the middle arrears bands. Year on year, the number of loans in the 5–7.5% arrears band fell by 12%, and reached its lowest number since the fourth quarter of 2008, while the number in the 7.5–10% band fell by 13% to its lowest since the third quarter of 2008. The only arrears band to show a year-on-year increase was the group of loans with arrears of 10% and over, with the 28,000 loans in this category, 300 higher than a year earlier, representing the highest number since June 2000. The 45,000 central forecast for repossessions in 2012 may be revised down when the CML publishes revised housing market forecasts later in the summer. However, the CML notes that continuing pressures on household finances, changes to welfare benefits and an upward drift in mortgage rates all have the potential to disrupt the current stable picture. Commentators said that the time might come when lenders had to stop showing generous forbearance to borrowers falling behind with their mortgage payments. Last year the CML forecast 40,000 repossessions, but in the event there were 36,200 – the lowest annual total since 2007. Housing minister Grant Shapps said that the Government’s commitment to tackling the country’s deficit was keeping interest rates low, which in turn was holding down repossessions. He said: `No family that has worked hard to buy their own home should be left feeling like repossession is the only option – not when there is help and support on offer to ensure that it is only ever the last resort. `Thanks to our work to tackle the deficit, we’ve managed to keep interest rates at record lows, keeping pressure off hard working home-owners, and meaning we’re nowhere near the levels predicted only three years ago.` He was referring to a report by Professor John Muellbaur who three years ago forecast that repossessions could hit 60,000 a year. Source; Mortgage IntroducerMon, 14 May 2012 12:00:00 GMThttp://www.twmproperty.co.uk/newsdetails.aspx?ID=1258�