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Admin — Wed, 04 Aug 2010 00:00:00 GMT

Property Book UK are offering 3 Months Free Management & Free limited content insurance (subject to terms & conditions) throughout the months of August & September.

Budget 2010: Capital Gains Tax on second homes

Admin — Fri, 02 Jul 2010 00:00:00 GMT

The Chancellor of the Exchequer George Osborne has set out his Budget with a comprehensive five-year plan to rebuild the British economy. With regard to residential property, owners of second homes may pay higher taxes, the Chancellor announced today. Capital Gains Tax (CGT) will rise from 18% to 28% for those liable to income tax at the higher and additional rates. Basic rate taxpayers will continue to pay CGT at the current 18% rate. The existing £10,100 threshold before there is any liability to pay CGT will remain in force and will be increased each year in line with inflation. This means you will not be liable to pay CGT on the first £10,100 rise in the value of your second home when you sell it. There is no change to the CGT exemption on the sale of your sole or main residence. Source: UK Property Shop

Fewer residential landlords choose to remortgage

Admin — Wed, 17 Mar 2010 00:00:00 GMT

The number of residential landlords who remortgage their buy-to-let loans continues to decrease, according to figures released by Paragon Mortgages. The last fiscal quarter of 2009 saw yet another drop in remortgages and fewer still are obtaining loans through financial advisors. In fact, 30 percent of residential landlords were able to receive a loan by applying through a financial advisor in order to remortgage their existing properties. This represents a 9 percent drop over figures from just three months earlier when the proportion of remortgages arranged through a financial advisor stood at 39 percent. Paragon Mortgages has tracked continuous decline in remortgaging for the past four quarters and the firm concluded that the number of landlords choosing this financial arrangement has never been this low since 2006.

Landlords often choose not to remortgage because the Bank of England's base rates continue to hover around historic lows of 0.5 percent, meaning as near good a rate as they are likely to get. The relatively restrictive nature of buy-to-let lending coupled with a scarcity of loan products for the rental sector have also discouraged landlords who might consider remortgaging.

Britain's Council of Mortgage Lenders seems to underscore what Paragon found in its survey. Over the past two years, gross advances in the buy-to-let loan sector have decreased by a staggering 72%. While the value of regular mortgages has also fallen, the decline has been closer to 50%.

Source: UK Property Shop

Rental Grows In Dominance By 4.1 Percent

Admin — Wed, 10 Mar 2010 00:00:00 GMT

Forty years ago home ownership may have been the route of choice but according to research by the Communities and Local Government's English Housing Report, more and more homeowners are becoming dependant on the Private Rented Sector.

In their report they revealed that since 2001, the number of UK households renting has risen from 1 million to 3.1 million people. Similarly this sector has rapidly grown in dominance increasing from 10.1% in 2001 to 14.2% in 2008-09. These figures appear to be working in direct correlation with the decrease in home ownership which has dramatically dropped in popularity from 14.8 million people to 14.6 million in the last 2 years.

Speaking on these statistics, Nigel Terrington from Paragon Group feels that they are proof that the government needs to recognise the growing importance of the rental sector and remove all the red tape from property investment so property investors can effectively invest in property.

With the UK population expected to grow by 10.6 million people by 2033, and the government not mustering enough property developments to cope with increases in housing demand, the government need to get their act together and acknowledge that the property market is vastly different from 40 years ago.

House prices rise again but weather depresses activity

Admin — Mon, 01 Mar 2010 00:00:00 GMT

In January, 32 percent more chartered surveyors reported a rise than a fall in house prices up from 30 percent in December. However, the majority reported that buyer enquiries fell for the first time in 14 months while new instructions dropped for the first time in seven months. 20 percent more reported a fall than a rise in new buyer enquiries down from a positive reading of 18 percent, while a net balance of five percent of chartered surveyors saw a decline in new instructions which compares with a positive balance of 15 percent in December.

The bad weather clearly had a negative impact upon both supply and demand in the housing market with newly agreed sales also falling for the first time in ten months and activity coming to a halt amidst the seasonal chaos.

Surveyors are however optimistic that these negative signs are a reflection of the extreme weather conditions only. Transaction levels fell just slightly in January. The number of sales per surveying firm fell from 19 to 18 while the closely watched sales to stock ratio - a measure of market slack and a lead indicator of future prices - fell for the second successive month.

Activity and interest is likely to pick up in the coming months as the market experiences a spring bounce.

RICS spokesperson Ian Perry said, "House prices are likely to rise in the short term but if more supply continues to come onto the market, it is possible that the market will run out of steam in the latter part of the year."

November house prices up 0.9% since October

Admin — Fri, 08 Jan 2010 00:00:00 GMT

The November data from Land Registry's flagship House Price Index shows a positive monthly house price change of 0.9 per cent, which is the sixth month in a row in which the movement has been above nought per cent.

The annual house price change stands at -0.3 per cent. This is the seventh month in a row in which the annual rate of decline has decreased. The average house price in England and Wales is now £161,554.

Four regions in England and Wales experienced increases in their average property values over the last 12 months. The region with the most significant annual price fall was Yorkshire & The Humber with a movement of -4.7 per cent. Wales experienced the greatest monthly rise with a movement of 2.9 per cent. The West Midlands was the region with the most significant monthly price fall with a movement of -0.4 per cent.

The most up-to-date figures available show that during September 2009 the number of completed house sales in England and Wales rose by 30 per cent to 53,482 from 41,302 in September 2008. Transaction volumes, while no longer falling at 2007 rates, remain relatively low.

House Prices Edge Up

Admin — Fri, 11 Dec 2009 00:00:00 GMT

Nationwide Building Society reports that house prices rose in November, the same rate as in October. It increased by 0.5%. Year-on-year house price inflation increased from 2.0% to 2.7%, while the labour market has so far held up better than expected.

The average house price in November was £162,784, compared with £162,038 in October.

Commenting on the figures Martin Gahbauer, Nationwides Chief Economist, said:

The monthly rate of house price inflation was unchanged in November at a seasonally adjusted 0.5%, leaving the average price of a typical property 2.7% higher than a year earlier. At £162,764, the average house price is at a similar level to where it was in early 2006. The 3 month on 3 month rate of change - generally a smoother indicator of the near term trend - dropped to 2.8% from 3.5% in October and 3.8% in September. This suggests that house prices are now rising at a more moderate pace than in the spring and summer months, when they experienced a very strong bounce from the early 2009 lows

The outlook for the housing market remains crucially dependent on labour market conditions, and here recent developments have been somewhat more encouraging than might have been expected. With the UK experiencing its longest and deepest recession since WWII, most economists expected unemployment to increase very sharply in 2009, perhaps breaching the psychologically important three million mark by the end of the year. While unemployment has indeed increased noticeably, the rise has not been as rapid and pronounced as previously feared. Based on the latest labour market figures from September, it now looks unlikely that the jobless total will reach three million before the year is up

Part of the explanation for why unemployment has not risen to the levels implied by the recessions depth is that in many cases employers have opted to reduce working hours and pay rather than make employees redundant. This is reflected in rising part-time employment at the expense of full-time employment and record low growth in average earnings. The strategy of cutting hours and pay rather than headcount probably reflects a fear among many employers that they could find themselves short of labour when the economy recovers, thus leaving them less competitive in the longer term. Whether this strategy is sustainable will depend on how quickly the economy recovers. If output is too slow to recover, then firms may find it necessary to reduce their payrolls further in order to improve productivity and profitability. Another reason to remain cautious about the future outlook for employment is that the public sector has not yet experienced any significant job losses, but presumably will begin to do so when fiscal policy is tightened from next year onwards.

Despite continued uncertainties about the future, the better than expected performance of the labour market has probably contributed to the surprise rebound in house prices this year. Even though workers who have been forced from full-time employment into part-time work will have experienced a reduction in income, the impact has been less severe than it would have been if they had lost their jobs completely. Together with the fact that mortgage rates have fallen sharply as a result of base rate cuts, this has meant that far fewer borrowers have fallen into arrears than would normally be the case in such a deep recession. In fact, the percentage of borrowers in arrears across the mortgage industry has even edged down slightly in the most recent quarterly figures. As such, the downward pressure on house prices from distressed sales has so far been significantly lower than expected.

Tank Crashes into Garden Fence

Admin — Fri, 27 Nov 2009 00:00:00 GMT

An eight-tonne tank driven by a soldier on a driving lesson crashed into a garden fence in Letheringsett, Norfolk.

Sporting a set of L plates, the Spartan Armoured Personnel Carrier left the road as it made its way through the village.

The driver, who recently returned from Afghanistan, has apologised to house owners Phil and Jayne Jones for the mishap.

A Ministry of Defence spokeswoman said the soldier was an experienced driver who was learning to drive tracked vehicles such as the Spartan. No-one was hurt the police were not involved.

Mr Jones, 64, a student accommodation administrator, said he and his 44-year-old wife, an opera singer, were both at home when the accident happened.

We heard what sounded like a collision and ran around to investigate. We then found a military vehicle sitting astride our fence. It's a 5ft wooden fence and I suppose it demolished a section of about 20 metres (65.6ft), he said.

Mr Jones said the fence had been mended and he was discussing payment with MoD insurers. It is safe to assume the couple's house nsurance policy does not specify tank damage.

Average house prices increased by 0.9% in September

Admin — Mon, 09 Nov 2009 00:00:00 GMT

The September House Price Index (HPI) data from the Land Registry shows a positive monthly change of 0.9%, with an annual movement of -5.6%, up from a low of -16.3% in February. This brings the average house price in England and Wales to £158,377. This is the fifth month in a row where the annual rate of decline has eased.

The number of sales averaged 48,109 per month from April 2009 to July 2009. In the same time period for 2008, transaction volumes averaged 59,677 per month.

In September, London displayed a positive monthly change of 1.3%, which was the highest growth of any region. This is the fifth month in a row that Londons monthly change has been positive. London and the South East are the two regions most responsible for the positive growth experienced by England and Wales as a whole. Londons annual house price change is -3.2%, which is the sixth month in a row in which Londons rate of fall has eased. The average value of a property in London is now £314,954.

London experienced the greatest monthly rise with a movement of 1.3%. Wales was the region with the most significant monthly price fall with a movement of -2.6%.

All regions in England and Wales experienced a decrease in their average property values over the last 12 months. The region with the most significant annual price fall was the North East with a movement of -8.2%.

The residential rental market is beginning to stabilise

Admin — Tue, 06 Oct 2009 00:00:00 GMT

The residential rental market is beginning to stabilise with property oversupply decreasing across the UK and the number of new tenancies increasing, according to the Association of Residential Letting Agents (ARLA).

Results from the latest ARLA survey of its members show that the historical decline in numbers of tenants, which led to a surplus of properties to rent, is coming to an end. 83% of ARLA members signed up 10 or more tenancies during the last quarter, compared to 79% last quarter. Each member signed up an average of 36 new tenancies, compared with 32.6 last quarter.

Almost a third of members (33%) surveyed felt that supply and demand of properties is in balance; this compares with just 19% last quarter. Ian Potter, Operations Manager of ARLA, said: "This shift in the balance of supply and demand is extremely significant for the private rented sector. It gives further evidence to suggest that the property market as a whole is getting back on its feet.

"This shift also indicates that confidence is rising among prospective tenants; it seems that people who delayed setting up home 12 months ago, now feel secure enough to proceed. Equally, those who historically have shared a rental property seem happy to set out independently."

In addition, the number of members who believe that there are more residential properties available for rent than there are tenants to fill them dropped significantly in the three month period, from 70% to 43%. The number who say that there are more tenants than properties has risen from 10% to 24%.

The situation is particularly significant in the rest of the South East, where three times as many members said that there are more tenants than properties (27% compared with 9% last quarter).

"This recovery of sorts is still in its infancy and needs as much support as the Government can muster. As we have stated repeatedly, a healthy private rental sector is the only way in which the Government can hope to house future generations. Accordingly, the Government must do all it can to nurture the recovery of the PRS including the implementation of meaningful consumer protection measures," Mr Potter added.

Historically, tenancy rose across all regions of the UK until the recession hit, when properties became harder to let and supply outweighed demand. This trend was felt hardest from late 2008 and into early 2009. This latest ARLA research also showed that the average void period of a rental home has dropped for the first time in more than a year, indicating that properties are being rented more quickly.

In the winter of 2008 the average length of time for a property to remain empty was 3.8 weeks across the UK, yet by May 2009 this had risen to 4.3 weeks as homes became harder to rent. Now, the figure has dropped to an average 4 weeks (and 3.8 in the South East), giving further indication that the rental property market is picking up.

The data from the third quarter of the ARLA Members' Survey of the Private Rented Sector is drawn from 639 offices. The survey is supported by mortgage lenders Mortgage Express and Paragon Mortgages. Together with the Survey of landlords, this forms part of the quarterly ARLA Review and Index.

Halifax House Price Index - Source: UK Property Shop

Admin — Tue, 15 Sep 2009 00:00:00 GMT

The latest Halifax House Price Index for August 2009 reports that UK House Prices increased by 0.8% in August, bringing the average price to £160,973. This represents an annual fall in house prices of 10.1%.

Commenting, Martin Ellis, housing economist, said: "The average UK house price rose by 0.8% in August. This was the second successive monthly increase and the fourth in the first eight months of 2009. Overall, house prices nationally are very similar to the level at the end of last year. Demand for housing has increased since the start of the year due to better affordability and low interest rates. This, together with low levels of property available for sale, has boosted house prices over the last few months."

Key Facts

* House prices increased by 0.8% in August. This was the second successive monthly rise and the fourth in the first eight months of 2009.

* Prices largely unchanged over the first eight months of 2009 as a whole. The average house price in August was £160,973 compared to £160,861 in December 2008.

* Prices in the three months to August compared to the previous three months were 1.7% higher. This is the biggest increase on this underlying basis since July 2007.

* House prices in August were 10.1% lower on an annual basis. The annual rate of change (measured by the average for the latest three months against the same period a year earlier) improved for the fourth successive month and has fallen from -17.7% in April. It is at its lowest since July 2008 (-8.8%).

* The proportion of disposable earnings devoted to mortgage payments - a key affordability measure - has fallen significantly over the past 21 months. Nationally, typical mortgage payments for a new borrower have fallen from a peak of 48% of average disposable earnings in 2007 Quarter 3 to 29% in August 2009. Notably, mortgage payments relative to earnings are now below the long-term average of 35% recorded over the past 25 years.

* Housing market activity continues to improve, but remains less than half the level in mid 2007. Bank of England industry-wide figures show that the number of mortgages approved to finance house purchase - a leading indicator of completed house sales - increased for the sixth successive month in July, on a seasonally adjusted basis. Approvals were 53% higher than in July 2008, at 50,123, but were 55% lower than in July 2007 (112,446).

Reduction in reluctant landlords

Admin — Tue, 08 Sep 2009 00:00:00 GMT

The trend for reluctant landlords appears to be coming to an end as members of the Association of Residential Letting Agents (ARLA) report a drop in rental properties coming onto the market because they cannot be sold.

The 'reluctant landlord' has been a key symptom of the housing market downturn, as home-owners desperate to sell their property turned to the rental market to pay their mortgages. ARLA's research shows that 80% of its members' offices have seen property being rented out rather than sold. This figure has dropped from a high of 95% of offices in November 2008 when consumer confidence and house prices dipped.

Ian Potter, Operations Manager of ARLA, said: "Many sellers were left with little option other than to rent their properties out earlier in the year but this trend seems to be slowly diminishing. There are, however, still a huge number of these reluctant landlords in the market who need to understand the obligations of a landlord to their tenants and the importance of choosing a regulated and qualified letting agent."

The markets for London and the South East are showing particular signs for optimism with 72.5% and 78% of offices citing a decrease in reluctant landlords -both down from highs of 92% last year. The number of family houses being rented out has decreased from 72.5% in November of last year to only 66%, but rentals for flats and studios have increased in the same time-frame.

New mortgage lending highest for 17 months

Admin — Tue, 01 Sep 2009 00:00:00 GMT

The July figures for the main high street banks show increases in the number of mortgage approvals and the amount of new lending, though this was below seasonal expectations, according to the British Bankers Association (BBA).

However, offsetting repayments gave rise to a net mortgage lending figure which was the lowest since October 2000. Unsecured lending has continued to be weak and the trend in deposit levels appears to be improving.

BBA statistics director, David Dooks, said of the latest data: "The numbers of mortgages approved for house purchase each month by the high street banks have continued to recover from last November's low point, but new lending is largely being offset by repayments, so that net rises remain relatively weak. Unsecured borrowing is subdued, with households focused on managing their personal finances and building up deposits.
"Lending to non-financial companies has contracted over the last year, as would be expected given both the recession and large corporates using the capital markets to raise funds, but amounts outstanding are only 3% lower than a year ago."

Nicholas Leeming, the director of propertyfinder.com, comments: "Buyers are champing at the bit to take advantage of attractive house prices, but the banks - awash with vast sums from the government and Bank of England - are suppressing new lending and encouraging borrowers to repay existing loans. Without a concerted effort from lenders to provide more assistance to homebuyers by providing finance, the recovery in the housing market is likely to be drawn out and painful."

Property Book UK stands up for standards

Admin — Thu, 13 Aug 2009 00:00:00 GMT

NALS, the National Approved Letting Scheme, aims to rid the private letting industry of cowboys

Colchester property management agent Property Book UK, is the latest company to join the NALS nationwide letting scheme - set up to provide a much-needed benchmark accreditation scheme to enable landlords and tenants to avoid the pitfalls of dealing with ‘cowboy’ letting agents.

NALS (The National Approved Letting Scheme) ensures that agents comply with defined service standards and have in place a customer complaints procedure offering independent redress through the Ombudsman for Estate Agents Scheme, Professional Indemnity Insurance, Client Money Protection cover and access to Tenancy Deposit Protection.

The Scheme is supported by some of the most powerful voices in the property industry. The British Property Federation (BPF), National Landlords Association (NLA), Sanctuary Shaftesbury Housing, the National Union of Students (NUS) and the Guild of Letting and Management are all Directors of the Scheme. Whilst Shelter, National Federation of Property Professionals (NFOPP) and RICS endorse NALS. Accreditation is open to any firm operating in the lettings sector who meets NALS strict criteria for accreditation.

NALS Operations Director Isobel Thomson comments: “NALS service standards are the consumer’s benchmark against which to judge the performance of letting and management agents operating in the private rented sector and we are delighted to welcome (your name) into the Scheme.

“Agents such as (your name) are in the vanguard of a drive to establish uniform service standards in the industry. Those agents who are not prepared to meet the standards required by NALS and, most importantly, the public, will not survive for long.”

(Your name), partner at (agency name) adds: “We see our NALS membership as an excellent opportunity to increase business within our letting and management department. This visible assurance provided by the NALS logo gives prospective landlords and tenants the confidence of knowing the service they can expect from dealing with us.”

More information on The National Approved Letting Scheme and details of how to contact your local NALS agent can be obtained by calling NALS on 01242 581712, emailing info@nalscheme.co.uk or visiting the NALS website www.nalscheme.co.uk

Notes to editor:

What is NALS?

The National Approved Letting Scheme (NALS) is a voluntary accreditation scheme for letting and management agents, established in 1999. The objective of the Scheme is to give owners the confidence to let their property by appointing qualified agents who, in joining the Scheme, have agreed to meet a set of minimum service standards for letting and management.

Who can join NALS?

NALS is open to all letting and management firms that can meet the strict accreditation criteria.

NALS is also open to Registered Social Landlords.

Minimum service standards

All members are required to agree to the accreditation criteria, which are:

Meet agreed service standards which should be set out in writing with a clear statement of charges

Maintain Professional Indemnity insurance and (except for housing associations) Client Money Protection cover

Offer Tenancy Deposit Protection to tenants and landlords in-line with new legislation that came into effect in April 2007

Maintain an internal complaints procedure open to both landlords and tenants

Independent redress to landlords and tenants through the Ombudsman for Estate Agents Scheme

For more information on any aspect of The National Approved Letting Scheme or to speak to Isobel Thomson, NALS’ Operations Director call 01242 581712

Gen Y wants freedom from flat ownership - Source ARLA

Admin — Wed, 12 Aug 2009 00:00:00 GMT

“conti-rental” trend for more flexible accommodation

18 to 30-year olds are a generation of renters compared to their older counterparts, according to new research by the Association of Residential Letting Agents (ARLA).

A survey of over 1,800 people revealed that double the amount of the younger generation – approximately a third (30.8%) - have rented three or four properties, whilst only 17.5% of Generation X had rented a similar number at the same age. 34.2% of Gen Y-ers that currently live in rented accommodation confessed that they enjoy independence from property ties.

A further 31.6% enjoyed the flexibility to move around. However, only 8% thought it wasn’t important to eventually own their own property. There were more men who had never paid rent for a property - 32.3% had opted to stay in the family home - whilst 75% of females were making their own way in the world and had either bought or were in rented accommodation.

Young females were keener to get on the property ladder with 45.2% having bought before they turned 25, whilst only 32% of men could claim the same. 21% of 18-to-30s stated that they wanted to continue renting for the foreseeable future.

Ian Potter, Operations Manager of ARLA, said: “The research reveals a generation that want to be upwardly mobile and free from ties. Attitudes towards renting have changed in the UK and perhaps we’re becoming more like our fellow Europeans, who tend to rent rather than buy.

“This trend of being “conti-rental” recognises that renting should no longer be perceived as a waste of money, but simply as an alternative lifestyle choice to being tied to property for the long-term. Today’s graduates, more than ever, are looking for work that involves travel and opportunities to move around, renting allows them to operate more freely in a flexible job market.”

Property Book UK Sponser Colchester United

Admin — Mon, 10 Aug 2009 00:00:00 GMT

Property Book UK are now proud sponsors of Colchester United. And just days after signing on the dotted line Colchester United enjoyed their greatest victory over highly rated Norwich City. For the full match report click on http://www.cu-fc.com/page/MatchReport/0,,10424~49126,00.html

Up the U's!

Improving Market - Source UK Property Shop

Admin — Tue, 04 Aug 2009 00:00:00 GMT

Homeowners today received the news they've all been hoping for. The property slump is easing, prices are rising in some areas, buyers are returning to the market and agents are selling more homes; This cocktail of good news follows 18 months of less palatable priced drops, a shrinking mortgage market and plummeting transactions all of which have depressed prices by up to 20 per cent Estate agents, who have endured months of closing branches and thousands of redundancies, say buyer enquiries to their offices rose for the seventh month in a row and that the average number of sales per office in May was 11.8, up from 10.6 in April; And the Royal Institute of Chartered Surveyors, the ultimate arbiter of what houses are really worth, said six per cent of its member reported rising prices on their patch in May, while 42 per cent said prices were going down - which is the most positive result from RICS since late 2007Government house price figures also point to an improving market - the Department of Communities and Local Government say prices jumped by 1.1 per cent in May and that the annual rate of decline is now 13 per cent. The average price of a house in the UK, it says, is now £189,215.00.

New website launched

Admin — Sat, 01 Aug 2009 00:00:00 GMT

Welcome to this new 'website, a new property to let website for the UK market Landlords, working in the Colchester area.