Did the bank bail out and ultra-low interest rates work?

I think that in the short term this has worked, whether it will continue to work over the next five years is, in my opinion, uncertain. I think that in 15 or 20 years time the view will be rock solid.

This will be down to the fact that Britain is a closed- shores market with limited supply, now funding has been axed we are unlikely to see any real supply of new builds. We are an ever growing Island, the immigrants did not all go home and the population is rising at a rapid rate. So all that is happening now involving finance and sentiment is no indication of the future.

 

 

Buy-to-let back in fashion

They are back and very excited! There was a much publicised meltdown of this sector a couple of years ago, but they have found their mojo and are off again..

A report just in from the Council for Mortgage Lenders suggests that buy-to-let lending is up 14% on last year.

It is not only long standing landlords that are emerging with renewed interest, it is also new blood looking to get involved.

There are many, most, being first time buyers that are struggling to get a mortgage, who have no option but to rent. There is certainly a captive audience out there. We may even turn into a nation of renters!

Creative Selling

Literally anyone that is remotely related to the property market will tell you that it is really going through a rough old time. The recession, government changes and a general downturn in spending has meant that houses on the market aren’t going anywhere, or at least not quickly enough.

There are those that have had their homes up for sale for so long that they feel they will never move, perhaps they have even only had one viewing!

 

Whilst people will suggest they lower the price of the house, this is not always possible for the homeowner. Those that can afford to do this have found that online property sites have been useful.

The auction format means that more often than not the house is sold for less than the market may offer but it will provide a quick property sale which for many, is highly desirable.

 

If there is absolutely no interest what so ever, it may be time to get creative. An owner in Cardiff decided to offer £15,000 cash reward for anyone that can locate a purchaser for them. It is all about maximising your property’s profile.

Another enterprising seller from The Gower decided that the purchaser of his large beach fronted property will also get his brand new boat free.

 If the going gets really tough, consider what else you could offer alongside your property to make your home even more appealing to a potential purchaser.

 

Sellers drop prices to lure buyers

New sellers have dropped their asking prices by 1.1% to create a national average asking price of £229,767 in a bid to help lure buyers.

It means prices have been reduced by 3.4% in the last three months, according to Rightmove’s house price index for September.

On a regional basis, asking prices declined the furthest in the East Midlands, down 4.4% to £161,603. On an annual basis, prices in the North and the South East saw the sharpest increases, up 4.6% to £151,795 and £298,903 respectively.

Miles Shipside, commercial director for the portal, says: "The double-dippers will be able to point to a clear downward trend, with new sellers dropping their asking prices for three months on the bounce. They can cite tough competition amongst sellers and agents struggling to find proceedable buyers for their record levels of unsold stock."

The number of new properties to have been listed on the portal this month has declined to 26,000 – the lowest volume since April.

The average number of properties for sale per estate agent is now at 79.

The survey follows a poll undertaken by national opinion pollster YouGov on behalf of the Council of Mortgage Lenders, which suggests that 76% of individuals polled have aspirations of owning their own home in the next two years, which is down from the 78% the last time the survey was undertaken in 2007.

The CML attributes the slide to a substantially lower short-term appetite (42%) for home ownership among adults aged 18 to 24, due to their desire for greater flexibility and mobility in their living arrangements and a lack of affordability.

 

What does your property lawyer do?

Conveyancing literally means transfering a property title from one person to another. In essence it is the legal process of buying and selling property. Who does the conveyancing? Property conveyancing by law must be done by a property solicitor or licensed Conveyancer. One lawyer cannot act for both parties, as this would cause a conflict of interest so therefore both the buyer and seller will have their own representation.

 

What is the distinction between a Licensed Conveyancer and a Solicitor?

 

Solicitors are regulated by the Law Society and normally practice all areas of law, including conveyancing.

Licensed Conveyancers are regulated by the Council for Licensed Conveyancers and specialise only in conveyancing. Most Licensed Conveyancers are Solicitors who have converted to Licensed Conveyancer status. The processes and consumer protection standards are the same for either type of firm.

 

 What do they actually do?

 

Basically the Conveyancer is purely acting in your best interest in the property sale or purchase. They make sure that all the terms and conditions of the sale contract are reasonable and that the financial information is all as it should be. The process for what they actually do differs as to whether they are acting for the buyer or the seller

 

What is the process?

 

The seller's Conveyancer will first request a copy of the land registry entry for the property being sold. These are called office copies. A contract will then be prepared for the sale by your solicitor, incorporating the land registry plan and details, before forwarding it to the buyer’s solicitor. The buyer’s solicitor will send for the searches from a range of bodies, one being the local authority, and will assess the contract for sale which has been received from the seller's lawyer.

 

Additionally, if the buyer is borrowing money on a mortgage then the solicitor will need to receive a copy of the formal mortgage offer and be satisfied that the buyer has sufficient funds available to complete the transaction. If there are items in the contract for sale that the buyers solicitor is not happy with, then they will raise a query with the other seller's solicitor.

 

Once all of the queries have been resolved, the searches have been received, and proof of funds achieved, then both parties will be in a position to exchange contracts. Exchange of contracts is the point of no return for both parties and is a legally binding agreement for that Seller to sell and the Buyer to buy the property. At any time up to this point, either party can withdraw from the process without any penalty other than any monies they have spent on surveys, mortgage application fees etc. At exchange of contracts a completion date is normally agreed when the transfer will be finalised. On the day of completion the monies are transferred between the parties and ultimately, the keys are handed over.

Rental Property Checklist

Renting a property should not be jumped into lightly; there are many factors to be considered. Even though you are renting, the property will be your home for a period of time. The checklist below will help you ascertain whether it is right for you, balance out the location, condition and cost of living in the desired property.

 

The outside

Does the outside of the property appear to be in good condition?

Does the property seem secure? Are external doors secured? Is there an entry-phone system and burglar alarm?

Is there a garden? Who is responsible for the maintenance of the garden?

What is the area like? Are your preferred amenities and transport links within easy reach?

Are there any potential nuisances?

What are the neighbours like?

Has the property ever been burgled or damaged?

Are the locks of good quality and secure?

 

The inside

Is it in good condition? Are there signs of damp, flaking paint or infestations of any kind?

Do repairs need to be carried out? Are there any broken items of furniture?

Is there central heating? Do all the radiators function properly?

Is it properly insulated? Is there double glazing?

Is there enough storage space for your belongings?

Is there any sign of dodgy wiring, loose wires or faulty plugs or lights?

Do kitchen appliances such as washing machines/dishwashers work?

Are there enough kitchen cupboards and work surfaces?

Are pots, pans and kitchen equipment in good enough condition to use?

Are the bedrooms adequately heated? Are there curtains?

Check the bathroom(s) and make sure taps are not leaking. Does the shower work properly?

Are the sealants around the bath and shower intact?

Are you allowed to change the decoration in the property?

Are there enough electrical and telephone points and are they in the right places for your needs?

Does it have broadband or wi-fi?

 

Safety measures

Have all appliances had safety checks (PAT tested)? Is the paperwork available to view?

Do the downstairs windows (if any) have locks?

Is there a burglar alarm?

Is there a safety blanket and fire extinguisher in the kitchen (required by law)?

Is there a Landlord's Gas Safety Record available to view?

Do the furnishings comply with the latest fire safety regulations (1989 Fire and Furniture Regulations)?

Are there carbon monoxide detectors present?

Are there enough smoke alarms? Do they work?

Is there an easy means of escape in the event of a fire?

 

Financial concerns

How much is the rent and what is included?

What other bills are there and what are you liable to pay for?

How much of a deposit is required? What are the conditions for the landlord deducting money from the deposit?

What are the estimated running costs of the property?

Can you comfortably afford the rent on top of the deposit and running costs?

 

General considerations

If anything needs to be repaired, you will have to ask the landlord in writing

If the landlord agrees to make repairs, get it in writing

Double-check the inventory before you move in

Get a copy of the tenancy agreement and make sure you fully understand it

Get (and keep) your own signed copy of the tenancy agreement

Can you ask previous tenants about their experience of the landlord and the property?

Check and note all meter readings on the day you move in.

 

Is The House Dip Healthy?

I am terrified to pick up the paper or switch on the news, are we facing housing market Armageddon????

According to Nationwide, the market has stalled, house prices falling 0.9% in August, but are still £3,000 up on the start of the year.

Are we all over reacting, prices rose at a heart fluttering pace only to come back down again, perhaps this is all just a healthy correction.

Nationwide said the average home is now worth £166,507 and the property market appeared to have stagnated following the past year's surprise rally in house prices.

Annual property inflation has slipped back to 3.9%, after hitting a recent peak of 10.5% in April, while over three months house prices are flat.

The building society said that while the market was easing, house prices were unlikely to fall rapidly as they did in 2008, with the evidence instead pointing to a period of stagnation which would improve affordability.

Recent market trends remain consistent with an unwinding of the supply-demand imbalance that drove up prices for much of the last year.

As more sellers have returned to the market, buyers have a greater selection of properties to choose from and more bargaining power with which to bid down asking prices.

There is little evidence of distressed selling, however, with the Council of Mortgage Lenders' second quarter figures showing another drop in mortgage arrears and possessions.

At present the trend for price decline is likely to remain modest.

A run of downbeat news emerging from the property market has led to renewed forecasts from some economists that prices will fall once more.

Howard Archer, chief UK economist at analysts IHS Global Insight suggests prices will be 10% lower than their mid 2010 levels by the end of 2011. His forecast was echoed this week by Andrew Goodwin, senior economic advisor to the influential Ernst & Young ITEM Club, who said annual price falls of between 3% and 5% will be seen over the next 12 months, before house price stabilise.

However, economists and property watchers agree that the effects of a slowdown will be felt differently across the UK. The threat of spending cuts and public sector cutbacks is more likely to affect areas outside London and the South East and hit them harder.

Meanwhile, in the more buoyant capital and commuter areas, good properties in desirable locations are likely to prove most resilient.

Last year, there was a major disconnect between the property market and the economy. House prices rose at a rate that was simply unsustainable and a degree of correction was always on the cards.