House prices could fall by 11pc, predicts Coutts

House prices could fall by 11pc, predicts Coutts
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House prices could fall, amid stormy econonomic conditions, forecasts Coutts House prices could fall by 11pc, predicts Coutts – Her Majesty the Queen’s bank – as it turns bearish about the property market. While there are only two types of ‘expert’ when it comes to predicting house prices – those who don’t know and those who don’t know they don’t know – Coutts’ analysis is more methodical than most. The bank considers five factors to assess the prospects for house prices – economic activity, valuation, liquidity, risk and momentum – and reckons that the negatives currently outweigh the positives for UK residential property. It would be foolish to worry about the slabs of vulgar abuse I receive from anonymous trolls whenever I report positive views on housing, but I must admit it is a bit of a relief to find a negative analysis; if only because I believe two views make a market. Henry Lancaster, senior investment analyst at Coutts told me: “Economic activity is negative. With the economy in recession, unemployment rising and wage growth sluggish, the domestic economic environment is unsupportive for house buyers. “Valuation appears expensive. House prices have broadly kept track with the growth of nominal – that is, not adjusted for inflation -gross domestic product (GDP) – a measure of economic output – over the past 60 years, reverting back to trend after both booms and busts. House prices are currently 11pc above their average value against nominal GDP. “Our conclusion is that UK residential property appears unattractive as an investment. Prices appear to have been bid up by investors seeking ‘safe havens’ to preserve their wealth given record low interest rates. However, the UK residential property market is far from risk-free.” Against all that, a house can deliver more than other investments –such as shares and bonds – because it is a home, with all the intangible benefits that can provide. Better still, homes in the most beautiful parts of the countryside can ‘do the double’ by providing quality of life and proving the best investments, according to research by Lloyds TSB – which owns Halifax, Britain’s biggest mortgage provider. It found that homeowners in England’s 32 areas of outstanding natural beauty (AONB) have not only enjoyed the intangible benefits of living in some of the finest countryside but have also enjoyed house price increases much greater than the average for the rest of Britain during the last decade. An AONB is defined as “a precious landscape whose distinctive character and natural beauty are so outstanding that it is in the nation’s interest to safeguard them” and these are designated by the National Association for AONB. Land Registry house price data for these areas – including the SolwayCoast, Kent Downs and Forest of Bowland – show the average value of property increased by more than £900 a month over the last 10 years. That led to an average increase of 87pc – or nearly £110,000 – in the average AONB house price during the decade from £125,860 in 2002 to £235,215 in 2012. By contrast, the Halifax House Price Index for Britain as a whole increased by 60pc from £101,133 to £161,937 over the same period. I suspect that much of that outperformance has been driven by babyboomers retiring from metropolitan areas, aided with well-funded pensions younger folk are unlikely to enjoy, boosting house prices in these rural idylls. The downside, of course, is that this makes it difficult for local young people to buy; Halifax reckons the average AONB house price is seven times higher than average gross annual earnings, compared to a price/earnings ratio of 4.9 in 2002. That could create troubling social tensions – unless Coutts is right and house prices are due a correction. Here and now, with a better quality of life in Britain’s finest countryside and AONB’s above-average tax-free gains, it seems that beauty really is in the eye of the householder. View the original article here

MeetMyAgent.co.uk Comments as Rightmove Report Reveals ... - Melodika.net (press release)

MeetMyAgent.co.uk Comments as Rightmove Report Reveals ... - Melodika.net (press release)
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rental guarantee schemes MeetMyAgent.co.uk, an independent estate agent review and rating website, comment as it is revealed that for the first time in a decade, asking prices of properties new to the market have not risen in May. Rightmove reports that since its inception eleven years ago, it has never been the case that new sellers in May have not raised their asking prices, and the website advised that this could be due to the market losing its ?spring momentum? earlier than usual. Statistics gathered by Rightmove show that even as the market was going into recession in 2008, prices rose each May (0.4% in 2007 and 1.2% in 2008). In 2011, asking prices rose 1.3% in May, and the May bounce has been as high as 3.2% in past years. The site believes their statistics hint that the market is currently taking ?a breather? as both demand and new supply reduce; supply of new properties on the market was 10% down on April, which may have contributed to the stagnancy in May this year. A spokesperson for MeetMyAgent.co.uk commented: ?What we have to remember here is that these statistics are drawn from asking prices rather than sold values, which give a more accurate indication as to price movement. ?However, these figures do paint an interesting picture; it could well be that sellers are becoming more realistic with their asking prices, taking into consideration the current financial climate, and the caution amongst buyers struggling to access finance in a still restricted mortgage market. ?This could prove to be good news for the housing market, as the closer sellers? and buyers? price expectations are to each other, the more likely a transaction will take place and people get moving.? For more information on MeetMyAgent.co.uk and their local estate agents, visit their website at http://www.meetmyagent.co.uk. About MeetMyAgent.co.uk: MeetMyAgent.co.uk is a London-based company specialising in independent estate agent reviews and ratings to help homeowners find the best estate agents for property sales or lettings. MeetMyAgent.co.uk?s website is simple and easy to use; a user simply types in their area or postcode and then can read independent, objective reviews and ratings from previous clients who have used estate agents in their area. Contact: Meet My Agent 2 Spring Street, London,UK Zip: W2 3RA Email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it For press enquiries please contact: Dominic Hiatt Rhizome PR Tel: 020 7851 4757 Email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it View the original article here Guaranteed Rental Scheme - Do you want to receive monthly rent even when the property is unoccupied?. Please contact us on 020 8694 8098 for extensive references to see how we can help you today.

Anish Kapoor's house in London occupied by demonstrators-The Guardian

Anish Kapoor's house in London occupied by demonstrators-The Guardian
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In the first of what could be a summer protest linked to the Olympic Games, has a group connected to Occupy movement took over an empty Georgian House which is owned by the sculptor Anish Kapoor Olympic park for a one-day art. The Group calls itself the bread and circuses, a reference to their argument that the Olympic Games are a means of distracting people from the pressing economic and social issues, said it had "liberated" part-derelict five-storey house in Lincoln's Inn Fields, one of Central London's most picturesque and expensive garden squares and the scene of a rough sleepers "tent city" in the 1980s. The group says the House has been left blank because the artist – the ArcelorMittal orbit Tower, a 115 m high sculpture and observation platform, dominates the skyline of the Olympic Park in East London – bought in 2009. Kapoor is listed as the Director of a company called 1-2 Lincoln's Inn fields Ltd., the address of the property, which was founded in the year 2009. The bulk of the £ 22. 7 m cost of the steel sculpture was met by the steel billionaire Lakshmi Mittal. The building is five stories high with a huge iron door and covered windows. Inside, there are several enormous room on the ground floor with a stairway climbing through the Centre. The wallpaper is peeling and wiring hangs threateningly from the roof. It contains no furniture except a couple of supermarket trolleys. -This is not about being against the OLYMPICS, said one protester. "It is about what the Government is using Olympic for." Small groups of protesters say they have been in the property for a week. One said that they wanted to find a creative use for what they see as wasted space. "Just look at it," he said. "We want to use that empty space". A homeless man who has joined the team in property, said: "How can anyone do this? How can you own a place here and not even use it when there are people who sleep in the streets? " From 4 pm Friday as the House will host art exhibitions, talks and film screenings with live music after 9 pm, "said the group. Among those that have been invoiced appears is John Hilary, Director of the charity War on Want, one of the organisers of the counter Olympic Network, which aims to challenge the corporate nature of the event, and Trenton Oldfield, who swam in the path to April's University boat race in a protest against "elitism". The Group sent a communication from a member, Jeniffer Taylor, who described the Olympics as "a smokescreen to take our minds off the austerity measures, the global economic crisis and the commodification and privatization of everything, including art". With the media-savvy art events connected to Occupy movement, has one day protest already its own Facebook page and Twitter feed. The Group has sent a message to supporters: ' new Holborn squatt will b [sic] removed in Saturday. The hit Friday against london policy! Bread and circuses: speaches, music, art, performance, rave and more surprises! " The broader movement Occupy has not announced plans to disrupt the OLYMPICS with protests, but it seems inevitable that this or other similar groups will use the global attention on London during the event to publish information about their causes. This is particularly the case as, having regard to Occupy loose collective in nature, more or less, anyone can start a protest under its banner. View the original article here

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Why not contact us now to see how we can help? [form 1 "Quick Call Back"] Customer Service: 020 8694 8098 Email: info@3let.co.uk Appraisal Team: sales@3let.co.uk Head Office: 3Let Limited, 78 York Street, London, W1H 1DP

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Why not contact us now to see how we can help? [form 1 "Quick Call Back"] Customer Service: 020 8694 8098 Email: info@3let.co.uk Appraisal Team: sales@3let.co.uk Head Office: 3Let Limited, 78 York Street, London, W1H 1DP

London property prices: rents hit new high in capital-Evening Standard

London property prices: rents hit new high in capital-Evening Standard
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The average monthly rent in the capital are up by 4.2 percent in the year to May to hit £ 1,038, topped the previous high set in November. David Newnes, Managing Director of LSL property services, which compiles the figures, said competition among tenants cannot afford borrowing for a home is driving up rents. Campbell Robb, Chief Executive of Shelter, warned: "for thousands of families as prices from owning a home, hire is fast becoming a way of life. "With rising rents in London, many families face a daily struggle to make ends meet." Green Party London Assembly Member Darren Johnson said: "it is appalling that working people is that prices from parts of London by rent rises." View the original article here

Why buy-to-let homes are a worthy investment

Why buy-to-let homes are a worthy investment
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You will need considerable funds to secure a property – a typical deposit is around 30pc, though experts hope that will fall to 25pc soon, while fees are about 1pc of the loan amount. You also need to consider tax issues and forex rates. You may buy a property in sterling but receive your income in another currency – this leaves you vulnerable to fluctuating exchange rates. If you are a cash buyer, sales can take six to eight weeks to complete – more if buying off-plan – and rates can change during this time. You should also consult an international financial adviser about the implications of drawing an income from a source in Britain. Estate agents with buy-to-let UK property packages will be able to advise, but it pays to also get independent advice. After all, for expats who move overseas to retire, a property portfolio could provide for their future. Stewart Dick, head of sales at Hornbuckle Mitchell, believes that a recently proposed move to include residential property in pensions would be of interest to many expats. "Current law bars pension savers from including residential property in their SIPPs and SSAS but if it were allowed we could expect a great deal of interest, as many view residential property as a far more accessible and understandable asset class than commercial property," he said. Savills, Knight Frank and Harrods Estates are popular estate agents for premium property but humble family homes remain in demand too. Research from property firm Paragon found that from the start of 2012, professional landlords have increased the size of their portfolio by 1.8 properties to an average of 10.8 properties. Terraced homes remain the most popular purchase, followed by flats and semi-detached homes. A good management or estate agency is essential for long-distance long-term lets. Some may be tempted to let to friends and family, but this can prove problematic. Vicki McLeod and her husband moved to Mallorca from London in 2004. She set up a PR/photography business, Phoenix Media Mallorca, and decided to retain her flat in Walthamstow in case they had second thoughts about the move. "We initially rented it out ourselves to people that we found through friends," she said. "At the end of the rental period we went to check the property and found our burglar alarm had disappeared. "Then we rented the property to members of our extended family and that went really badly – they owed rent, our mortgage payments got behind and the house was left in a mess." They are now with Spencers Property Services in Walthamstow. "I am happier leaving it up to them as there is always so much to do here running our own business that I don't really want the additional hassle or worry," Ms McLeod said. Specialist property management firms for expats include ADS Lettings and Your Move: Mr Cox uses Homebase Property Management and recommends their service.Consider using a firm local to your property – though if you increase your portfolio to include homes in several areas, you may need more than one company. It is worth using a management service that only does property management. "Ensure that they care about you and are not just interested in property sales," Mr Cox said. "Quite often property companies do it all and this can be an issue, as a broken boiler can be crucial for your tenants but for someone doing property sales as well, it is just an annoyance getting in way of closing a big property sale elsewhere." Buy-to-let rents averaged £919 a month across the UK in May, according to letting agents haart. But figures for London show average rents of up to £1,032 a month, up 4.5pc over the last year. London demand also remains strong, with up to seven renters chasing every available property in certain parts of the capital and the South East. You will need to take into account property management fees. But even a small profit is worth it if the property value is increasing. Kate Faulkner, managing director of Designs on Property Ltd, said: "The future of buy-to-let investment remains bright for those who choose their properties carefully, and appreciate success is down to financial management and getting the legals and tax implications of investing in a property portfolio correct." This article was originally published in The Telegraph Weekly World Edition View the original article here

Worry for homeowners facing the threat of fracking

Worry for homeowners facing the threat of fracking
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A protester demonstrates their feelings about fracking close to Ardingly reservoir, West Sussex. Photography: Chloe Parker/Alamy Fracking has already generated smaller earthquakes in the Northwest, but homeowners in the vicinity of shale gas extraction may face an even worse aftershock: falling house prices. John Johnson, head of estate agents Farrell Heyworth in the Lancashire town of Poulton-le-Fylde, near one of the most important sea sites, says: "there are lots of properties that came into the market, and some of the owners say they want to get before prices begin to drop." Fracking involves drilling a well hundreds of metres into the ground and pumping full of water, sand and chemicals to fracture the rock and release the methane gas. Process was stopped in the United Kingdom in June 2011 after two earthquakes in two months near Blackpool followed drilling in places in Lancashire by Cuadrilla resources. An independent scientific report recommended recently that fracking could resume, subject to stricter controls, but fracking companies are still awaiting the results of a review by the Government. Meanwhile says it is considering site Cuadrilla in which beside its drill rig. The company, one of the four with a permit to search for shale gas in the United Kingdom, has 10 seats so far, most are in Lancashire, but the company also has locations in Cowden, Kent, Lingfield in Surrey, and planning permission for exploratory drilling in Balcombe in West Sussex. It says it has no plans to carry out work on the southern areas at this time. Richard Sexton, Director of esurv, the UK's largest supplier of residential valuation, said the level of public awareness about fracking is still low. He added that as awareness increased, fracking could affect House prices, "spoil properties in the areas that are perceived to be affected". He believes that the effect would be similar for high-speed rail line is planned from London to Birmingham, HS2 – painful but relatively short term: "prices went down 10% to 20% within one mile of the proposed route and prices will remain low until the line is up and running. Reality is never quite as bad as we think it is. " Searchflow, a company specialized in transfer documents, searches, said it had seen an "explosion" in the number of searches that requests information on wind turbines and HS2 and anticipate similar interest of fracking websites. This is where homeowners can find a seller at all. "I am sure that most of the housing stock in the UK would resist an earthquake. But it is a buyer's market right now, so why would they want to buy in an area where fracking takes place? "Sexton said. But: while the Government has established the system of compensation for people unable to sell their homes in the vicinity of HS2, has no plans for a similar system for victims of fracking Cuadrilla. A spokesman for the company said it had no evidence that house prices would be low because of their work. Anecdotal evidence suggests that plans for fracking already deterring potential property buyers are considering home in the Northwest. A posting on the Web site stopfyldefracking said: "I currently live in Cheshire and intend to move to St Anne's when I learned of the shale prospecting/exploration. I have very strong feelings about how fracking, and the likelihood that continuing would have great significance for any decision to relocate. " Another said: "We find the House in St Anne's we wanted to buy last weekend but could not move forward while the problem is." Brian Baptie of the British Geological Society said all earthquakes are caused by fracking, while capable of causing superficial damage, would be too small to cause serious structural faults in residential property. But homeowners in the United States who have property in areas where shale gas drilling has taken place has suffered house price devaluation of a multitude of fracking-related causes, some that look that will survive the gas. Property owners in the United States can earn money by renting their land for shale gas extraction. A study in Colorado in 2001 in La Plata County showed that properties of coal-bed methane gas wells were valued 22% in less than similar properties without wells. A report by save the Colorado from Fracking group, said: "the so-called" gas zone "is an identifiable part of the La Plata County and according to real estate agents, buyers and agents representing buyers and sellers, [buyers] can tend to avoid this area. Perceived direct effects involving changes to views, noise, traffic and – indirectly because of traffic – the airborne dust and road damage. According to interviewees, the risks to the surface owner perceives are the pollution of groundwater, seeps of methane gas and coal fires. " Google the words "fracking" and "US", and many accounts, poisoned water and residents suffer strange and unexplained illnesses. Many homes in the more sparsely populated areas in the United States have their own water sources and high levels of infection have been recorded since the emergence of fracking. Many U.S. lenders are not surprising, unwilling to offer mortgages on properties leased to gas drilling, while others provide that homeowners must get permission from their mortgage lender before they sign a lease. A couple in Pennsylvania were denied a mortgage of three lenders because of gas drilling in a neighbouring property. One of the creditors concerned, Quicken loans, said: "in some cases conditions are fulfilled as gas wells and other structures in adjacent lots, which can significantly impair a property's value." Back in the UK, the Halifax, one of Britain's biggest mortgage lender, says: "Fracking is not common in the UK and beyond, there is no set policy. As with all other issues affecting the mortgage lending value, assessed properties on its own merits, based on the market conditions reflects the effects of any issue about the overall value of the property. This is the same in places where fracking could take place. If the issue was problematic for local properties in a particular area would be taken into account. " Homeowners in the Fylde Coast stretching from Lytham and St Annes at its southern most point Preesall and Knott in the North have reported problems even before gas extraction begins. Posting on the website stopfyldefracking, a Wrea Green homeowner said his home has suffered damage during the geophysical survey: "I have had injuries on a bit outside of masonry with a big crack. I suspect I have more hidden damage and has initiated proceedings against Cuadrilla. " Another of the Greenhalgh, Kirkham said: "one of the Cuadrillas shell vehicles parked outside my house and began operation. For over an hour, my house was subjected to horrendous vibration, living nearby came from their houses and many likened to noise and vibrations as an earthquake. After that I noticed a crack in my kitchen wall, damaging a concrete plan, and several tiles dislodged in my bathroom. Malcolm Tarling, spokesman for the Association of British insurers, said the damage caused by the earthquake and explosion would be covered by the house insurance and insurers would continue to offer protection to existing policyholders affected by such problems. "Claims are most likely to relate to subsidence, landslip or cancellation. If you have a history of invasions, some insurers may refuse to cover as a new customer, but there are systems that enable people in these circumstances to get insurance. " View the original article here

How to make sure your property stays tenanted - The Independent (blog)

How to make sure your property stays tenanted - The Independent (blog)
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AppId is over the quota AppId is over the quota New research shows that the average length of time a rental property is unoccupied in the UK rental property is three weeks, the longest period since the beginning of 2011. The figures come from the Association of Residential Letting Agents (ARLA) which is suggesting landlords take action to avoid these empty ‘void’ periods. “Void periods can cause uncertainty and affect overall rental yields,” said Ian Potter, Operations Manager at ARLA. “While they are a fact of life in the rented sector, there are simple steps that landlords can take to help reduce the chance of a property being untenanted for extended periods. These periods without occupancy can also give a landlord a useful window to carry out routine maintenance and any additional work designed to make a property more attractive for incoming tenants.” ARLA recommends five key points for landlords: 1. Set realistic rents While rental properties are in high demand in many parts of the UK, this is not a guarantee of back-to-back tenancies. As well as asking the advice of a letting agent, it is also worth doing your own research to find out if the level of rent you are charging is suitable for the area. Remember that the overall cost of an extended void period can outweigh the perceived loss associated with setting a sensible rent, which may also make the property quicker to let. 2. Foster good tenant-landlord relations A tenant’s right to reside, undisturbed, within a property during their tenancy period is enshrined in law. This means that, except in an emergency, a landlord must give tenants 24 hours notice before requesting entry to the property for viewings or maintenance work. By upholding basic obligations, landlords have a greater chance of establishing a good relationship with tenants, and they may be more likely to stay in the property longer. 3. Make the property desirable Ensuring the property is in good order could help make it more desirable, meaning it will be easier to let and may even mean tenants want to stay longer. While tenants have a duty to look after internal fixtures, landlords are generally responsible for the repairs, unless the damage is caused by the tenant, as well as the structure of the building, the exterior and the roof. In addition to this, a landlord must ensure heating and hot water installations, sinks, baths and other sanitary fixtures are maintained to a reasonable standard. But further decorating and furnishing the property appropriately, and to a good standard, may help it stand out to potential tenants. 4. See a ‘void’ as an opportunity While it is important for landlords to keep up to date with necessary repairs, a void period could provide a good time for non-essential, intrusive maintenance and improvement works to be carried out, with minimum disruption to tenants. This could, in turn, make the property more attractive. 5. Hire a letting agent A good letting agent can help guide you through the day-to-day complexities of being a landlord and also share the work in finding prospective tenants, meaning you will have less work to do when a tenancy comes to an end. You can get advice from a lettings agent affiliated to a professional organisation like ARLA whose members must adhere to a strict code of conduct, as well as offering client money protection and redress schemes, which protect all parties if things go wrong. Useful web sites for more information Tagged in: buying house, estate agents, mortgages, moving house, real estate, selling house View the original article here

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Why not contact us now to see how we can help? [form 1 "Quick Call Back"] Customer Service: 020 8694 8098 Email: info@3let.co.uk Appraisal Team: sales@3let.co.uk Head Office: 3Let Limited, 78 York Street, London, W1H 1DP

Research shows 'worrying' impact of housing benefit cap - The Guardian

Research shows 'worrying' impact of housing benefit cap - The Guardian
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London: 40% of the capital's landlords said they would stop renting to housing benefit tenants in the next year, compared with 33% nationally. Photograph: Alastair Grant/AP Landlords in the capital are more likely to evict tenants or not renew tenancy agreements than in other parts of the country as a result of housing benefit changes, research shows. According to a government-commissioned study, 40% of London landlords said they would stop renting properties to housing benefit tenants in the next year – compared with 33% nationally. Another 26% said they would reduce their lettings in London to housing benefit tenants – compared with 24% nationally. London Councils, the body representing the capital's 33 local authorities, described the findings as "worrying". The research, Monitoring the impact of changes to the Local Housing Allowance system of housing benefit, was led by the Centre for Regional Economic and Social Research at Sheffield Hallam University. Before the housing benefit reforms were put in place, there were warnings about how badly housing tenants in the capital would fare. London Councils last year calculated that between 82,000 and 133,000 London households would be unable to afford their homes after the reforms, with only 36% of London's housing affordable to those receiving benefit by 2016. Local authorities said there was a shortage of affordable housing and London had relatively high rents. The result, shown in the study, was that landlords in London were more than three times more likely to evict tenants or not renew tenancy agreements (37%) than they were to lower rents (11%). One in six – 17% – of London landlords said they would no longer let their property to housing benefit claimants as a direct result of the housing benefit reforms, compared with 9% nationally. The government had made much of the study's investigation of whether the reforms incentivised work. More than half (54%) of the London tenants affected were trying to improve their employment position. About a third of tenants in the capital said they had looked for a job (compared with 27% nationally) and 20% looked for a better paid job (compared with 11% nationally). Last week, Lord Freud, the welfare reform minister, said: "We have capped housing benefit so that people can no longer claim over £100,000 a year to live in large houses in expensive areas of London. This is the right and fair thing to do. "This research gives us an early insight into what is really happening and it shows the many scare stories about the effects of housing benefit reform are simply not materialising." The work was commissioned by the government and was carried out last autumn, several months after the measures had been introduced for new housing benefit claimants but before the impact was felt by existing claimants. The survey showed that London tenants were doing everything they could to hold on to their homes. Families were cutting back on some essentials. The Sheffield Hallam study showed 38% of London housing benefit claimants spent less on household essentials – the figure was 42% nationally – such as heating and food. Sir Steve Bullock, London Councils executive member for housing, said: "The report's findings are worrying, especially since it only covers the initial impact of the housing benefit cap. It provides independent analysis to support what London Councils and others have been saying for over the last year, concerning the impact of housing benefit changes on Londoners." "Rents are much higher in London than in other parts of the country, and landlords are rightly worried about tenants who claim housing benefit being able to pay their rent. However, it seems far too many are evicting tenants or simply not renewing tenancy agreements and not working with tenants and councils to find a way forward. "Landlords not reducing their rent will exacerbate the shortage of housing for those households who are working and on low incomes. We have already seen evictions in London and fear this will further escalate over the coming months." View the original article here

House prices could fall by 11pc, predicts Coutts - Telegraph.co.uk (blog)

House prices could fall by 11pc, predicts Coutts - Telegraph.co.uk (blog)
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House prices could fall, amid stormy econonomic conditions, forecasts Coutts House prices could fall by 11pc, predicts Coutts – Her Majesty the Queen’s bank – as it turns bearish about the property market. While there are only two types of ‘expert’ when it comes to predicting house prices – those who don’t know and those who don’t know they don’t know – Coutts’ analysis is more methodical than most. The bank considers five factors to assess the prospects for house prices – economic activity, valuation, liquidity, risk and momentum – and reckons that the negatives currently outweigh the positives for UK residential property. It would be foolish to worry about the slabs of vulgar abuse I receive from anonymous trolls whenever I report positive views on housing, but I must admit it is a bit of a relief to find a negative analysis; if only because I believe two views make a market. Henry Lancaster, senior investment analyst at Coutts told me: “Economic activity is negative. With the economy in recession, unemployment rising and wage growth sluggish, the domestic economic environment is unsupportive for house buyers. “Valuation appears expensive. House prices have broadly kept track with the growth of nominal – that is, not adjusted for inflation -gross domestic product (GDP) – a measure of economic output – over the past 60 years, reverting back to trend after both booms and busts. House prices are currently 11pc above their average value against nominal GDP. “Our conclusion is that UK residential property appears unattractive as an investment. Prices appear to have been bid up by investors seeking ‘safe havens’ to preserve their wealth given record low interest rates. However, the UK residential property market is far from risk-free.” Against all that, a house can deliver more than other investments –such as shares and bonds – because it is a home, with all the intangible benefits that can provide. Better still, homes in the most beautiful parts of the countryside can ‘do the double’ by providing quality of life and proving the best investments, according to research by Lloyds TSB – which owns Halifax, Britain’s biggest mortgage provider. It found that homeowners in England’s 32 areas of outstanding natural beauty (AONB) have not only enjoyed the intangible benefits of living in some of the finest countryside but have also enjoyed house price increases much greater than the average for the rest of Britain during the last decade. An AONB is defined as “a precious landscape whose distinctive character and natural beauty are so outstanding that it is in the nation’s interest to safeguard them” and these are designated by the National Association for AONB. Land Registry house price data for these areas – including the SolwayCoast, Kent Downs and Forest of Bowland – show the average value of property increased by more than £900 a month over the last 10 years. That led to an average increase of 87pc – or nearly £110,000 – in the average AONB house price during the decade from £125,860 in 2002 to £235,215 in 2012. By contrast, the Halifax House Price Index for Britain as a whole increased by 60pc from £101,133 to £161,937 over the same period. I suspect that much of that outperformance has been driven by babyboomers retiring from metropolitan areas, aided with well-funded pensions younger folk are unlikely to enjoy, boosting house prices in these rural idylls. The downside, of course, is that this makes it difficult for local young people to buy; Halifax reckons the average AONB house price is seven times higher than average gross annual earnings, compared to a price/earnings ratio of 4.9 in 2002. That could create troubling social tensions – unless Coutts is right and house prices are due a correction. Here and now, with a better quality of life in Britain’s finest countryside and AONB’s above-average tax-free gains, it seems that beauty really is in the eye of the householder. View the original article here

Recommended housing prices reach a record-Belfast Telegraph

Recommended housing prices reach a record-Belfast Telegraph
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Recommended House prices have risen to a new record high, but remains well below their peak in 2007 when inflation is taken into account, a study says. The price of a home hits the market increased by 1% on the month in June to reach 246, 235 on average, but London is the only region where prices have gone to inflation over the last five years, the Rightmove house price index, found. Almost 30 000 new sellers a week came to market in the three weeks before Diamond Jubilee weekend, the highest proportion of new lists for almost two years, suggests the recommended price increases will slow down as the seller competition intensifies, the study said. Elections in Greece and concerns about the euro zone as well as the summer sporting events as Euro 2012 and the OLYMPICS is likely to dampen further domestic sales, with buyers interested in show sport than property, the study said. Recommended prices have risen to new record highs in the last three months in a row. But while the sellers price is up by 2% in August 2007, just before the economy facing a run on Northern Rock, they have fallen by 13% in real terms after the retail prices index (RPI) inflation is taken into account. London is the only region in the study, which covers England and Wales to record an inflation busting increase recommended prices, which is at a new high for the capital of 477, 440. Prices increased by 3% after inflation since August 2007. Prices in the South East also hit a new high of 318, 717, although prices in the region is 11% lower than in August 2007 in real terms. Asking prices have fallen at the bottom in real terms in Wales, where they are standing at 167, 875, fall a sharp 24% since August 2007. Rightmove Director Miles Shipside said: "better properties in areas that better remain in short supply, provide sellers of coveted stock, and their agents, trust to come to market at a higher price. "The property law within the commuting or holiday bolt-hole-spacing of the capital appears to be an attractive each way bet with the potential to be both lågkonjunktur-proof and offers great odds to keep pace with, or even outstrip inflation." View the original article here

East Anglia property SMEs expecting to invest despite wider market

East Anglia property SMEs expecting to invest despite wider market
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Home SMALL to medium sized property businesses across East Anglia are more positive about the future of the sector than in 2011, with almost a quarter (23 per cent) expecting an increase in market activity in the next six months, according to a report from Lloyds TSB Commercial. The latest quarterly ‘Property Matters’ report reveals a distinct contrast with last year’s results, with property business owners in London becoming less confident in the UK market and regions such as East Anglia showing a slight swing towards optimism. The report comes at a time when Lloyds TSB Commercial’s lending to UK property SMEs has risen by 11.5 per cent in the region. Despite the slight increase in positivity across East Anglia, respondents were split in their opinions on activity in the region, with 25 per cent expecting activity to slow and 52 per cent predicting that activity will stay at current levels. This gives the region a net confidence score of +1. The report looks at the confidence of SME property businesses throughout the UK based on their attitudes to investment and views of sources of funding. It reveals that even though expectations for the regions have improved, property business owners are more cautious about the recovery of the wider UK market. More than half (51 per cent) in East Anglia believe activity will remain static and the rest are split between improvement and decline (24 per cent each). Barry Coote, relationship director for Lloyds TSB Commercial in East Anglia, said: “While there is more overall positivity than 2011, the overwhelming message is that SME business owners are not expecting a massive swing towards a vibrant market. “This is not surprising with so many wider economic factors still in play. From a bank perspective, while it would be nice if this crucial sector of the property market were confidently expecting 2012 to be significantly better than the latter half of 2011, that isn’t going to happen without far more tangible evidence of movement in the market. “However, the slight swing towards a belief in an upturn in the market and the fact that less people predicting a decline is a positive sign. “We are working hard to help businesses prepare for and take advantage of any upturn. Our positive lending figures are a further indication that there are businesses doing deals and investing in their own portfolios.” However, the number of businesses expecting the value of their own portfolios to remain static is 63 per cent. Barry Coote added: “Predicting values is challenging for small businesses as they have seen the values of their assets erode in recent years. Whether the wider prediction of static values indicates that they believe prices have bottomed out remains to be seen. “What is clear is that whatever decisions property owners take over the next six months will need to be made with caution and guidance to ensure that their fragile optimism isn’t overturned.” View the original article here Our rent guarantee scheme provides you with between 1 to 5 years worth of guaranteed rental income. What’s more, there’s no catch and no fees involved. Contact Guaranteed Rental today on 020 8694 8098 to find out more.