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.

 

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.

 

It may be time for a re-vamp of your property and the way it’s being marketed!

Property not selling?

 

Sometimes it is easy to feel despondent that your house isn’t selling like you hoped it would. Now internet viewing is en vogue, potential buyers will have their own opinions formed before they even walk through your front door! Just visually changing the look of a few rooms could generate new interest or make a previous viewer see your home in a different way. Your estate agent will always be there to help you take more up to date photos and update your property’s  profile. Always remember that your estate agent wants to sell your house just as much as you do!

 

Make sure that your estate agent details and photos will really sell your property. Imagine you are a potential purchaser and you are searching on a property website, there are two virtually identical property with similar prices in your area. One of the properties has an excellent write up and amazing, bright and clear photos, Which one would you choose? Honestly?

 

Consistently ask these two very important questions to yourself:

 

1)      Have all the great selling points of my property been photographed and shown? Are the photos bright and clear?

2)      Have all the great selling points of my property been written out?

 

You could have a newly fitted kitchen with fantastic gadgets but you only have one photo of the kitchen and there are no details about the kitchen or the gadgets that you are leaving. You could have a family bathroom plus an en-suite, shown in the photos is only the en-suite. Potential purchasers could assume you have a very small bathroom. Also, you could have a fireplace which has been photographed, it may not state in the details that it is actually a working fireplace.

These are important issues which need to be addressed if you are selling a house properly.

 

 A few useful tips

 

What you will need to do first is walk around your property and take a good look at it. You could always ask a very honest friend if there are any improvements which they would make as a potential buyer. Ask yourself, are there any scuff marks? Is there peeling paint on the walls? Are the cupboards overflowing? Is the grouting tacky? If so, fix it! Take a look at your dining room table with six chairs, maybe this makes the room look cluttered. Remove two chairs and this will add instant space to the room. You will be shocked at how these minor undoing’s can put the viewer off.

 

Before your estate agent comes to take photos of your property, put yourself in the position of the viewer. Is this exactly how you would want a property to look if you were buying? Think deeply and make the adjustments which are needed. Make sure your house is clutter free and that there aren’t any dirty dishes or clothes lying around. Open all the curtains and blinds and turn the lights on so that the viewer will get a full feel of your homes’warmth. Make sure you are at home while the photos are being taken, as you can ask to see these photos before they are published on a property website. If you are not happy with the photos or details, ask for re-takes or re-writes. This is crucial in making your home perfect for viewers.

 

Remember to give your property a spring clean and remove as many personal touches and clutter as possible. You want your potential buyer to imagine living in your home, so this is vital that you make your home as neutral as possible. They will need to visualise their own family in your home, so removing clutter will make the rooms seem larger and remove unnecessary furniture which may be blocking the view of any hidden features. Viewers are always looking at your property as a whole so storage is always key. It is tempting to hide clutter in a wardrobe or spare room but viewers will always be looking at how big the rooms and storage areas are. A useful tip is to store unnecessary clutter in boxes, tucked neatly away in your garage or you could even ask a friend to store your boxes temporarily until the photographs are taken.

 

If your feel your property has ‘lost its touch’, it is time to give it a small budget makeover! Remember that there is potential in everything you own. That old kitchen dresser which suddenly stands out after you wallpaper the inside with a vibrant print or paint, which was previously viewed as a large, frumpy piece of furniture and unexpectedly lights up the room after being given a lick of something colourful. Also, if you dislike a piece of furniture but you don’t want to replace it, you could always paint it the same colour as the walls which will always make the room look bigger.

 

Always remember, paint, wallpaper and fabric are key to re-creating a brand new look for each room. Tester pots of paint may not cover a wall, but there is enough in the small bottles to paint old photo frames and then hang them on which was previously a dull, white wall. A tablecloth made by stitching off-cuts of fabric can brighten even the most boring dining table. Buying bright and bold bathroom towels or rugs can instantly add life to a room, making it look newer and more inviting. Re-organising your books according to the colour of the spines can instantly add bold patches of colour to your shelves. Adjust the focus of the living room, by organising the chairs so they face each other to add a more sociable approach to the room. Buy a few cheap plants and plant them in bright coloured pots to bring instant life to quiet and shy corners of a room. Any one of these minor changes can refresh your property at once.

 

If you still get people who are questioning whether all of this is worth it, make some changes and see what difference it makes. You will soon see that it is time to move onto the bigger stuff. Don’t forget to have a go; you can always change things if you don’t like them.

 

Remember this, it is all about creating or re-creating more interest in your property to sell your property. Never forget that your estate agent wants to sell your house just as much as you do.

 

Angharad Williams

The force of supply and demand

The forces of supply and demand appear to be at work in the housing market. What looks like a sudden flurry of homeowners willing to test the market by putting their homes up for sale is not being matched by expressions of interest from potential buyers.

The coalition government has in part helped fuel sellers' eagerness by scrapping Labour's home information packs, which were intended to make life easier for buyers in what had typically been a seller's market.

But the dearth of buyers means that homeowners who enjoy a feel-good factor attached to the rising value of their property are going to be disappointed. The latest house price survey registers a small 0.1% rise in July to an average of £220,685. A similar trend is expected for the rest of the year, with the economists predicting that prices will "continue to remain close to flat" for the remainder of 2010 and into 2011.

Little wonder, given that while 72,000 homes were sold in July, up 11% on June, this is still substantially below the 100,000 that would have been expected to change hands in the heady days before the credit crunch took the steam out of the market.

For some, though, selling or buying a new home in the current market is an irrelevance when redundancy is making it difficult to keep up existing mortgage arrangements. While the Council of Mortgage Lenders has revised down its forecast for repossessions in 2010 to 39,000 from its previous estimate of 53,000, there are still potential clouds on the horizon.

The coalition intends, in October, to almost halve the benefit that helps redundant homeowners maintain mortgage interest payments. This will coincide with mounting concerns about public sector job losses. A rise in interest rates, albeit not expected until next year, could cause even further problems. A rethink of the cuts to the mortgage interest benefit is needed.

 

early half of new borrowers took out a fixed rate mortgage in June, reports the Council of Mortgage Lenders.

 

 

 

 

 

 

The CML says fixed rates had proved unpopular this year compared to the last several years due to an historic low bank rate with little prospect of the rate rising.

House purchase loans were up 23% in value to £7.6bn in June with 52,000 loans advanced.The house purchase lending was up 14% in volume and 27% in value from June 2009.It is now the twelfth consecutive month in which lending has been higher than its previous year’s levels.

Paul Samter, CML economist, says: "For the time being, the effects of government spending cuts have yet to make an impact on mortgage demand, and activity continues on its upward trajectory. "But we still expect house purchase activity to be muted in the coming months. Both consumer demand and lending capacity remain distinctly difficult to call, especially in the light of the government’s austerity measures and their possible impact."

Remortgages also saw modest increased with 27,000 loans, worth £3.4 billion, up from 26,000, worth £3.2 billion, in May 2010 but down 20% in volume in June 2009 from 34,000, worth £4.2bn.Q2 2010 saw 136,000 house purchase loans, worth £19.7bn., which is 20% higher, by volume and value, than the Q1 2010 and up 17%, by volume, and 30%, by value, than Q2 2009.

For remortgaging, the second quarter saw 77,000 loans, worth £9.6 billion,, up 2% by volume, with no change in value, from Q1 2010. But in stark contrast to house purchase lending, the figure was down 20% by volume and 19% by value from Q2 2009.
There were 52,200 loans, worth £6.2bn, to first-time buyers from April to June, up from 43,400, worth £5bn, from January to March and 85,300 home mover loans, worth £13.5bn, up from 70,700, worth £11.2bn.

 

Cameron announces changes for Council properties

I have just read an interesting article in the Times, David Cameron is hinting at huge changes for council home owners, those waiting and those already living in council properties.

Millions of people who have been stuck for years on council house waiting lists could benefit from sweeping reforms, David Cameron said yesterday.

The Prime Minister revealed the policy during a candid session with voters as he warned that looming budget cuts would shrink the State for good.

Council tenants should have to move into the private sector if their earnings improved significantly, he said, to help to tackle the backlog of five million people on waiting lists.

The Government is considering introducing reviews every five or ten years, which would mean that those given council homes could be moved into smaller places once their children have grown up.

In addition, no one would be able to keep a council property in the family by handing it down a generation.

Mr Cameron said that he wanted to see a more flexible system where people could "move through council housing rather than seeing it as something you get for life".

Launching an event in Birmingham to brace the public for severe spending cuts, he said: "Should we be asking: when you’re given a council home — maybe in five or ten years you will be doing a different job, you will be better paid, will not need that home and will be able to go to the private sector."

He conceded that the proposal would trigger "quite a big argument". He said that people had to open their minds to new ways of doing things so that Britain lives within its means.

Grant Shapps, the Housing Minister, will launch a consultation on council house tenure this year and the results could be included in legislation in the current parliamentary session.

Kay Boycott, ofthe Shelter charity, said that the policy could be very costly for local councils to implement. To justify taking away the only bit of safety and security the poorest and most vulnerable in our society have, it would need to be proved beyond a doubt that there would be a significant benefit for those in housing need."

The Prime Minister also claimed "moral responsibility" for public sector cuts amid concerns that voters are unprepared for the sheer scale of the austerity measures to be revealed in October.

In his starkest warning yet of how the £113 billion squeeze will reshape Britain, Mr Cameron said that services axed would not be reinstated when the good times returned. He said that instead the country should use this "painful and difficult process" to find ways of doing more with less.

He insisted that the cuts gave Britain a chance to return to a more secure financial footing and offered a "prize" on the other side. "It’s going to be a difficult period for Britain. We shouldn’t think it’s all doom and gloom. At the end of this there will be light and hope and a stronger economy."

During a 60-minute question-andanswer session, the first of several that he and Nick Clegg will hold over the summer to brace the country for the pain, Mr Cameron fielded 19 questions from an audience of Heart FM listeners and Birmingham Mail readers.

Rose Jones, an official for the West Midlands Fire Brigades Union, asked him to pledge to reinstate anything that the Fire Service lost to cuts once the country returned to economic health.

Mr Cameron replied: "Should we cut things now and then go back later and try and restore them? I think that’s the wrong approach. Let’s do this in a way that’s sustainable. We have all got to open our minds and think, how can we work in a different way? Let’s try and think of a different way of what you are doing so we can find ways of doing more for less."

He urged banks to increase lending >and said that cutting the debt was a moral issue. "I don’t think we should be racking up debt for our children to pay, for future generations to pay."

He said that the budget situation was "dreadful", worse than Greece or Spain.

However, he insisted: "If we can do it, the country can come out stronger and with more better-paid jobs for people. We can be a real success story in this decade as we have been in the past."

Halifax: house prices up 0.6% in July

Halifax has reported that UK house prices increased by 0.6% in July, reversing a fall of 0.6% in June.

Prices were 4.9% higher year-on-year, having lost ground on a month earlier when the annual rate of growth registered at 6.3%.

At £167,425, the value of the average home stood 8.3% above its April 2009 trough but 16% below its August 2007 peak.

According to the lender’s housing economist, Martin Ellis, there has been little change in prices so far this year.

He suggests that an increase in the number of properties for sale, boosted by the recent abolition of Home Information Packs, has relieved upward pressures on prices, while low interest rates and a recovering economy continue to underpin demand.

However, the economist adds: "The mixed pattern of monthly rises and falls over the first seven months of the year is consistent with a slowing market."

By way of comparison, Nationwide recently reported that the value of a typical UK home declined by 0.5% in July, to £169,347.

The building society’s chief economist, Martin Gahbauer, suggest that it is too early to tell whether house prices will remain flat in 2010, or whether further price falls are in store.

 

House prices at 2006 levels

House prices in England and Wales are now at similar levels to those seen in the summer of 2006, according to the Land Registry.

However, property values crept up by just 0.1% from May to June, taking the average cost of a house to £166,072.

Prices were 8.4% higher than a year ago, marking the eighth consecutive monthly rise in year-on-year prices.

Various commentators have suggested that house prices are likely to remain relatively static in 2010.

The Land Registry's survey is widely regarded as the most authoritative, although it only covers England and Wales.

Regional breakdown

All regions of England and Wales have seen average property prices rise in the year to June, the Land Registry said.

The highest increase was in London - up 12.2% - with the smallest in the North East of England - up 0.7%.

However, the North East has seen typical house prices drop by 1.3% in the month from May to June. The highest month-on-month rise was in Wales, up 2.9%.

Cash in on the generosity - while it lasts

Something extraordinary is happening in the mortgage market: banks are falling over themselves to offer better deals. If they're not cutting their rates or fees, they're cutting up the small print that determines who qualifies for their best deals.

The best new offers can slice £55 a month off the cost of a typical £125,000 five-year fix, knock almost £1,000 off the remortgage fees on a new deal, or get you on the housing ladder with a much smaller deposit than you needed in the spring.
Unfortunately, few experts predict that the generosity will last. In the autumn banks will have to get serious about repaying some of the emergency funding they needed to ride out the credit crunch.

The good deals may disappear as lenders struggle to refinance their own debts and run out of cheap cash to lend to their customers.

So if you see a good offer now it could be worth signing up - even if your current fix, discount or tracker doesn't expire until the end of the year. Most lenders let you book a rate up to six months before you need it.

Here are some hot offers.

WANT A LOWER RATE?
The newly merged Britannia/ Cooperative group has launched the biggest summer sale, knocking 0.5 per cent off its two and five-year fixes. The deals, aimed at first-time buyers with just ten per cent deposits, are now priced at 4.99 and 5.89 per cent respectively. The lender is also reducing the application fees by almost £500. Nationwide has knocked almost 0.3 per cent off the rate on its three-year tracker - the rate you start paying now is
2.69 per cent. But even this can be beaten by the new deals from the Nat West/Royal Bank of Scotland group. As long as you've got a big deposit or plenty of equity it's offering two-year trackers at just 2.19 per cent, two-year fixes from 3.39 per cent and five-year deals from 4.49 per cent.

WANT LOWER FEES?
First Direct has set the pace by cutting its application fees on its low-rate trackers and fixes to just £99 - that's a saving of up to £900 on its old prices. Meanwhile, Nationwide is knocking £500 off its £896 fee for first-time buyers picking most of its new trackers and fixes while Santander has cut fees to zero for existing borrowers moving home. Yorkshire building society is going one stage further. As well as removing its fee for first-time buyers, it's also offering them a £500 cash-back when the deal goes through.

WANT MORE FLEXIBILITY?
Santander and Norwich & Peterborough building society are extending the availability of their best rates to people with lower deposits or less equity in their homes. N&P borrowers needed 20 per cent deposits or equity to get its best-buy fixes. Now you can qualify with 15 per cent, and the society's five-year rate has been cut to 5.89 per cent.

WANT HELP DECIDING?
An element of confusion marketing has crept into the summer sales and it's right to ask if money saved on a low fee might be taken back on a higher rate, or vice versa. You can line different deals up against each other and see how much they'll really cost by using the new 'True Cost' mortgage calculator at www.thisismoney.co.uk.

Article extracts taken from Mail Online.

 

 

House price inflation slows during June

Rate drops from 9.8% to 8.7%, with average house price £170,111
Scrapping of HIPs partly causing increase in housing supply

The annual rate of house price inflation dropped from 9.8% to 8.7% in June, and the rate of inflation is expected to "drift lower", according to the Nationwide building society.

Although the price of a typical UK property increased by 0.1% in June compared to the previous month, the rate of increase has slowed markedly from 0.5% in the previous month. The average price rose to £170,111 from £169,162 in May.

Martin Gahbauer, Nationwide's chief economist, said: "The month of June presented a picture of broad stability for the housing market. Barring a significant pick-up in house prices over the next few months, the annual rate of inflation should continue to drift lower, in light of the very strong price increases recorded during the summer of 2009. Over the first half of 2010, UK house prices have risen by a cumulative 3%.

"Recent indicators point to an increase in the supply of property coming to the market for sale, perhaps in response to the abolition of HIPs in the opening days of the new coalition government. With the level of demand remaining broadly stable, this would help to explain the recent slowdown in the rate of house price inflation."

He said the government's decision to implement an immediate hike in the rate of capital gains tax from 18% to 28%, rather than deferring the increase, helped to prevent a short-term supply distortion caused by large numbers of property investors selling up to avoid the tax rise. A flood of properties being put up for sale would have driven prices down more drastically.

However he added: "Looking beyond the short term, the spending cuts and tax increases in the budget will squeeze household disposable incomes, which are undoubtedly an important driver of house prices. Given that the already elevated level of house prices-to-earnings ratio, this limits the very strong upward momentum in property values we have seen over the past year. However, the acceleration of the fiscal consolidation means that interest rates are likely to be lower than they otherwise would have been which should provide some offsetting support to households and mortgage affordability."

The curtailed inflation rate reported by Nationwide is in line with other statistics published this week. Yesterday the Bank of England said the number of mortgages approved for house purchase remained broadly unchanged during May, while the Land Registry reported a 0.2% drop in house prices in England and Wales in May – the first monthly fall in values since April 2009.

David Smith, senior partner at property consultants Carter Jonas, said: "The latest Nationwide figures are broadly what we were expecting to see in June, as the abolition of HIPs start to have an impact on the supply-demand balance. There has certainly been more properties coming on to the market in recent weeks, and although on the one hand this is positive news for a market that has been bereft of stock, at the same time there hasn't been any noticeable uplift in buyer demand, which will inevitably see a suppression in house prices as a result.

"Where house prices go from here is difficult to predict because there are so many factors at work at the moment. The fallout from the budget will certainly have a major role to play in the coming months, with uncertainty surrounding impending public sector cuts and higher taxes, and of course we still have the ever-present threat of interest rate rises in the mix.

"Although these figures suggest house prices are starting to flatten out at their current level, the top end of the market is still performing remarkably well, with double digit price growth since the start of the year, and a stronger-than-ever demand for properties in desirable locations."

 

Google Property Lets You List Your Property for Free

In a move that’s set to topple property portal giants Rightmove and findaproperty, google has launched a new service that allows googlers to search for your property in google maps.

Google finds data from UK property portals to display properties for sale, or to rent. Property portals such as Zoomf, NFoPP’s PropertyLive, Zoopla andSmartNewHomes allow estate agents to list properties for free on their website. Google then aggregates this data, combined with listings on estate agents sites such as Hamptons, Dezrez and, GMG Property Services, whose brands include Core and Vebra, and displays it on a google map.

Searchers can then further refine their search by price, property type, number of bedrooms and number of bathrooms.Try a search now in maps.google.co.uk for any UK postcode, then click 'More' then select 'Properties'

How to list your Property for Free

Once you have decided on an estate agent to value and sell your property you can ask them to place a free listing on one of the property portals, such as zoomf, and google will take care of the rest.

Don't be fooled into any talk of having to pay for an online listing or marketing cost as these services are completely free! 

For Estate Agents

Google currently lets you submit a feed of your properties for free, this will mean your listings are fed into the google maps property search almost instantly. 

 

 

Emergency Budget 2010 at a glance

The key points from the Chancellor's speech:

The Budget is tough, but it is also fair, said Mr Osborne. The coalition Government had inherited the largest budget deficit of any European economy except Ireland. 

Unless the Government delivers concrete measures to tackle debt, the consequences would be "higher interest rates, more business failures, sharper rises in unemployment and potentially a catastrophic loss of confidence and the end of the recovery".

Britain is set to miss the Labour government's "golden rule'' target by £485 billion.

The Government's "formal mandate" is that the structural current deficit should be in balance in the final year of the five-year forecast period, which is 2015/16.

A fixed target for debt will also be created, which in this Parliament is to ensure debt falls as a share of GDP by 2015/16. The Office for Budget Responsibility's judgment is that the Government is on track to meet these goals and Mr Osborne said "we are set to meet them one year early in 2014/15''.

OBR forecasts show growth in the UK economy for the coming five years estimated to be 1.2% this year and 2.3% next year; then 2.8% in 2012, followed by 2.9% in 2013; then 2.7% in 2014 and 2015. Consumer Price Inflation is expected to reach 2.7% by the end of the year, before returning to the 2% target in the medium term.

The OBR says unemployment will peak this year at 8.1%, then fall each year to reach 6.1% in 2015.

The coalition Government believes the bulk of debt reduction must come from lower spending, rather than higher taxes - roughly 80% through spending cuts and 20% through higher taxes. Measures today mean that 77% of the total consolidation will be achieved through spending reductions and 23% through tax increases.

Current expenditure will rise from £637 billion in 2010/11 to £711 billion in 2015/16.

The Government will look at how to dispose of its shareholding in air traffic body NATS, the student loan book will be sold and the future of the Tote will be resolved.

With the full agreement of the Queen, the Civil List will remain frozen at £7.9 million for the coming year and a new means of support for Her Majesty will be proposed at a later date.

Mr Osborne said his Budget today implies further reductions in departmental spending of £17 billion by 2014/15, with unprotected departments facing an average real cut of around 25% over four years.

The Government is asking public sector workers to accept a two-year pay freeze, with protection for the 1.7 million public servants earning less than £21,000. Those low-paid workers will receive a flat pay-rise worth £250 in both years.

The OBR today forecasts that by 2015/16, we will be spending over £10 billion a year to meet the gap between pension contributions and payments to the unfunded pensions they support.

The Government will accelerate the increase in state pension age to 66.

From next year - with the exception of the state pension and pension credit -benefits, tax credits and public service pensions will rise in line with consumer prices rather than retail prices, saving over £6 billion a year by the end of the Parliament.

Tax credits will be reduced to families earning over £40,000 next year, the taper rate at which awards are reduced will be increased, the baby element will be removed for new children from April 2011 as will the one-off payment to new workers over 50 from April 2012.

The Government will abolish the health in pregnancy grant from April 2011, restrict the Sure Start maternity grant to the first child only and expect lone parents to look for work when their youngest child goes to school.

Child benefit will be frozen for the next three years.

The Government will introduce a medical assessment for Disability Living Allowance from 2013 for new and existing claimants.

Housing Benefit will be reformed with a maximum limit of £400 a week, in a package saving £1.8 billion a year by the end of the Parliament

The total welfare shake-up will save the country £11 billion by 2014/15.

From April 2011, the threshold at which employers start to pay National Insurance will rise by £21 per week above indexation.

Corporation Tax will be cut next year to 27%, and by 1% annually for the next three years, taking it down to 24%.

The small companies' tax rate will be cut to 20%.

Corporation Tax will be cut next year to 27%, and by 1% annually for the next three years, taking it down to 24%.

From January 2011, the Government will introduce a bank levy, which will apply to the balance sheets of UK banks and building societies and the UK operations of foreign banks. From January 2011, the Government will introduce a bank levy, which will apply to the balance sheets of UK banks and building societies and the UK operations of foreign banks.

Reform of the corporate tax regime "will help rebalance the economy away from household debt and government consumption'', said the Chancellor.

Labour's landline tax will be abolished and instead the Government will support private broadband investment with funding in part from the digital switchover under-spend within the TV licence fee.

The Government will commit to the upgrade of the Tyne and Wear Metro, extension of the Manchester Metrolink, redevelopment of Birmingham New Street station, improvements to the rail lines to Sheffield and between Liverpool and Leeds.

On January 4 next year, the main rate of VAT will rise from 17.5% to 20%. The VAT rise will generate more than £13 billion a year by the end of this Parliament and zero-rated items will remain exempt from VAT over the course of this Parliament.

No new increases in duties on alcohol, tobacco or fuel after the "substantial increases'' announced in Labour's March Budget. Labour's plan to increase the duty on cider by 10% above inflation will be scrapped from the end of this month.

The Government will help low-spending councils in England to freeze council tax for one year from next April.

Capital Gains Tax remains at 18% for low and middle-income savers but from midnight taxpayers on higher rates will pay 28%. The 10% CGT rate for entrepreneurs which currently applies to the first £2 million qualifying gains will be extended to the first £5 million. The CGT changes should bring in almost £1 billion extra, the great majority from additional income tax, said the Chancellor.

Personal income tax allowance to be increased by £1,000 in April to £7,475. Some 23 million basic rate taxpayers will gain up to £170 a year. The higher rate income tax threshold will remain frozen to 2013/14, with a long-term objective to increase the personal allowance to £10,000.

The basic state pension will be linked once more to earnings from April next year, with the pension guaranteed to rise in line with earnings, prices or 2.5%, whichever is the greater.

The child element of the Child Tax Credit will rise by £150 above indexation next year in a £2 billion-a-year "commitment to low-income families''.

Transactions set to surge post world cup

There may be an upturn in housing activity up to as much as eight per cent following the world cup. Your Move have analysed the amount of property transactions completed throughout as well as after World Cups. According to analysis of the figures, transactions have increased by an average of 8% following the competition in comparison to its first month.For instance, in the last World Cup, 2006, in the month following the tournament, property transactions rose by 10% from 160,000 per month in June to 176,000 in August.

This is not a seasonal phenomenon. For six of the last seven World Cups, the month following the tournament has seen increased activity compared to the same month the year before, rising by an average of 7%.When football fever grips the nation, many buyers are glued to their screens. But historically, a flurry of buyers hit the streets in the month after the tournament.

That doesn’t mean the housing market recovery is set to stall in the short-term during the competition. Consumer confidence has risen this year, and more buyers have been entering the market. We don’t expect the World Cup to interrupt the recovery of housing sector but we can expect an upsurge once it’s over.

 

Transactions set to surge post world cup

There may be an upturn in housing activity up to as much as eight per cent following the world cup. Your Move have analysed the amount of property transactions completed throughout as well as after World Cups. According to analysis of the figures, transactions have increased by an average of 8% following the competition in comparison to its first month.

For instance, in the last World Cup, 2006, in the month following the tournament, property transactions rose by 10% from 160,000 per month in June to 176,000 in August.This is not a seasonal phenomenon. For six of the last seven World Cups, the month following the tournament has seen increased activity compared to the same month the year before, rising by an average of 7%.When football fever grips the nation, many buyers are glued to their screens. But historically, a flurry of buyers hit the streets in the month after the tournament.

That doesn’t mean the housing market recovery is set to stall in the short-term during the competition. Consumer confidence has risen this year, and more buyers have been entering the market. We don’t expect the World Cup to interrupt the recovery of housing sector but we can expect an upsurge once it’s over.

 

Joint mortgage for joint property buyers launched by platform

 

The mortgage lender, Platform, has just launched a new product solely for joint property buyers. They say that research has shown that those with joint mortgagees tend to ‘perform better’ than those with a mortgage in their sole name. They are therefore able to offer favourable rates to joint applicants.

The move comes amid rising unemployment and fears that single home owners would not be able to keep up with their mortgage payments if they lost their job. The two-year fixed rate deal is being offered at a rate of 3.19 per cent for joint borrowers with a 30 per cent deposit, by non-high street lender Platform. None of the lender’s other fixed rate deals for sole borrowers are available at that rate. The best rate on this deal for a single person is a higher 3.49 per cent.

 It is understood that this is the first time a lender has offered preferential rates to joint borrowers. Platform only offers its home loans through mortgage brokers but other high street lenders could follow with similar deals if the deal proves to be a success. The lender defended the better rate, saying joint mortgages were less of a risk than those approved to single borrowers. However, while the mortgage is for joint applicants, both parties do not have to be working. Mortgage finance has dried up since the beginning of the credit crisis three years ago despite banks receiving billions of pounds in taxpayer support. Mortgage experts condemned the move, saying sole borrowers were not higher risk borrowers.

The deal is available to those buying a new home as well as remortgaging and comes with a £1,495 arrangement fee. Platform said it offers a two-year tracker mortgage deal at 2.79 per cent for those with a 40 per cent deposit.