Diary of a Property Investor

UK property market 'over the worst'

Homeowners and private landlords have been told that the UK housing market appears to be over the worst of its recent troubles, which have seen property prices drop and a reduction in the availability of mortgages.

That is the opinion of the National Association of Estate Agents (NAEA) and the group's president Gary Smith, who have together predicted an upturn in activity over the coming months.

Recent increases in agent sales boards have been reported by the NAEA, with one in six branches noting a 20 per cent upturn.

Meanwhile, Mr Smith said that estimates have shown that there is "a significant increase in demand", which suggests there are "plenty of buyers out there".

"The NAEA calls on the government to further badger banks and building societies to respond to the opportunity to pull the situation around," he added.

Last month, chief executive of the association Peter Bolton-King said that first-time buyer confidence has been growing since the start of spring.

Written by Mark Garner

Source: Lettingzone.com

UK mortgages pick up at last

The number of mortgages approved for house purchase rose to a 13-month high in May as buyers continued to return to the property market.

Figures released by the British Bankers' Association showed a total of 31,162 loans were approved for people buying a property during the month, seven per cent more than in April.

The figure was also 16 per cent higher than it had been in May 2008, the first time the annual measure has shown an increase since November 2006.

The rise in the number of mortgages approved for house purchase adds to growing evidence that buyers are returning to the property market on the back of record low interest rates and recent house price falls.

Both Halifax and Nationwide reported price rises during May, while the National Association of Estate Agents said their members sold the highest number of properties during the month since October 2007.

But economist Howard Archer, of IHS Global Insight, warned:"We believe the pickup in actual house purchases is likely to remain gradual for some time to come."

Source: http://www.dailyrecord.co.uk/news/business-news/2009/06/24/uk-mortgages-pick-up-at-last-86908-21467077/

UK property market has 'buyers-a-plenty'

The average estate agent in the UK made ten property sales in May, according to a new study.

National Association of Estate Agents (NAEA) figures show that this was the same number reported in April, but a 30 per cent increase year-on-year.

Additionally, each agent had an average of 299 house hunters on its books, which prompted the NAEA president Gary Smith to say there are "buyers a-plenty" in the UK.

More often than not, he added, these people are potential sellers at the beginning of the moving process.

"With mortgage interest rates at historically low levels and prices now far more realistic than in previous years, home ownership in the UK seems to be set to lead the way out of the recession," Mr Smith continued.

NAEA chief executive Peter Bolton-King recently suggested that confidence among first-time buyers has grown in recent months.

If more people move house, it may increase the need for safe storage, which can be used by homeowners as a useful space-saving facility.

Written by Graeme Pieterson

Source: http://www.safestore.co.uk/industry_news/19227277/uk_property_market_has_buyers-aplenty.aspx

Israel woman 'bins $1m mattress'

A Tel Aviv woman has been searching through Israeli rubbish dumps after she said she accidentally threw away a mattress containing $1m (£700,000).

The woman, identified only as Anat, had bought a new mattress for her mother as a surprise and threw away the old one, Yedioth Ahronoth newspaper reported.

A search of three landfill sites has so far turned up nothing, said the paper.

When the woman realised her mistake, she rushed out to retrieve the mattress but it had already been taken away.

She hurried to the Hiriya local dump, only to find the mattress had been shipped to one of two larger landfill sites, along with another 3,000 tonnes of rubbish collected that day.

A search of the first site, Ganei Hadas, proved fruitless so she moved onto Efeh, close to the Dead Sea.

Yitzhak Borba, the director of the Efeh site, told Israel's Army Radio the woman had been "totally desperate" when she arrived.

He was reported to have kept some of his staff on overnight to fend off treasure hunters and help the woman.

But despite being unable to retrieve the mattress and its hidden fortune, "Anat" appeared philosophical about her loss.

"People have to take everything in proportion and thank God for the good and the bad," she said.

There has been no comment from her mother.

Source: News.bbc.co.uk

UK mortgage approvals rise 16% month-on-month in April - CML

LONDON, June 11 (Reuters) - Mortgage approvals for house purchase in Britain rose 16 percent month-on-month in April to stand 28 percent lower than a year earlier, the Council of Mortgage Lenders said on Thursday.

 

Mortgage loans to first-time buyers rose 11 percent on the month while those to home movers climbed 19 percent, it said.

 

The figures suggest record low interest rates are breathing some life into the housing market after activity slumped to a record low last year. Nevertheless, analysts were reluctant to say the decline in prices was coming to an end.

 

"The data add to the mounting and now widespread evidence that house price activity is picking up in response to the substantial fall in house prices from their 2007 peak levels and markedly reduced mortgage rates," said Howard Archer at Global Insight.

 

"Nevertheless, this has to be put into perspective. Mortgage activity is still down at a level that is normally associated with falling prices."

 

The CML figures showed the cost of servicing new mortgages fell in April, with first time buyers typically committing 15 percent of income to mortgage interest payments, the lowest proportion since May 2004.

Home movers typically spent 11.3 percent of their income on mortgage interest payments, the lowest proportion since November 2003.

 

The survey also showed a rise in the take-up of fixed-rate products. Sixty-nine percent of borrowers took out fixed-rate mortgages in April, the highest share since June 2008.

 

"With the interest rate cycle now at its floor, an increasing proportion of borrowers are taking out fixed rates, including for longer term periods of 5-10 years," said Bob Pannell, the CML's head of research.

 

(Reporting by Christina Fincher; editing by David Stamp)

 

Source Guardian.co.uk

The attractions of renting

As the UK property market continues to struggle more and more people are looking towards renting properties in the short to medium term until their own financial situations are clearer and the UK property market is more stable. While many people would suggest to you that renting property is "dead money" this is not always the case and there are a number of positive factors to take into account.

Renting gives you the flexibility and the opportunity to move to either your own home or another property at relatively short notice and without having to sell a property. Renting also gives you the opportunity to perhaps put some money away for your own property in the short to medium term and then look to step onto the ladder as UK property prices stabilise – assuming we see liquidity return to the mortgage market. The ability to rent a property in a specific area, in which you may be interested in buying your own property, and "test the water" is also something which many people will be acutely aware of in the current economic environment.

This is not to say that there are no issues with rental accommodation, perhaps a difficult landlord, a lack of free money to save for your own property or similar issues, but if you are unsure about buying your own property then renting a home is your next step up the ladder.

Source: Financialadvice.co.uk

UK Property Sales Reach 18-Month High

The National Association of Real Estate Agents reports that more homes were sold in April, 2009 than in the previous 18 months. The average agent sold ten properties in April, up from eight in March and well above the low of five, which came in August, 2008.

 

The increase in sales is a positive indicator that the bottom may have been reached in the real estate market, according to several analysts. Property firm Jones Lang laSalle is confident that property in the UK has hit rock bottom and is headed for a gradual recovery. Peter Bolton Kind, Chief Executive of the National Association of Real Estate Agents said "What we are beginning to see now are consistent positive indicators that have held firm or improved since the beginning of the year." 

 

The NAEA’s Housing Market Survey indicated that the number of first-time home buyers was at 23 percent, the same level as in March. Bolton King also was cheered by that fact, as he believes that first time buyers are taking advantage of low prices and great deals.

 

Source: Homesgofast.com

NAEA - UK Property Sales Rise in April

Yesterday (18 May) the National Association of Estate Agents (NAEA) announced that the amount of property sales per estate agent rose last month, the Mortgage Introducer website reports.

 

The amount of sales each agent made in April of this year rose by an average of 10 per cent. Although house prices have been shown to have fallen, this increase in agent numbers is seen as a positive sign.

 

It would appear that confidence in the property market is returning, as the following statistical examples highlight. April was the fourth continuous month to witness a steady percentage level of 23 per cent of first-time buyers in the overall sales figures. The number of agreed sales per agent in April saw an increase to 10, from 8 in March. The average amount of properties available for sale also rose in April to an average of 76, from 67 in March.

 

All of these are positive indicators and much needed in what remains a difficult economic environment.

 

The NAEA said: “While the number of people registering to look for properties fell in the past month, the April figure remains high when compared to the past 12 months, and so any dip should be scrutinised in that context. Taking jointly the figures for the past two months, it is clear that there has been a resurgence of interest in the property market, probably reflecting both an increased confidence in the future of the market and a belief that house prices are bottoming out after months of falls and that now might be an opportune moment to secure a bargain.”

 

Source: news.hotproperty.co.uk

Offset mortgages more popular as savings rates dwindle

Uptake of offset mortgages is rising as savings rates dwindle.

According to HSBC-owned lender, first direct, new offset mortgage business rose 16% in the final quarter of last year.

The firm asserts that swapping to this type of home loan can reduce the length of a £100,000 25-year mortgage by 33 months and save £18,322 in interest payments over the lifetime of the loan.

Offsetting does this by taking deposits into account in calculating monthly interest charges.

No interest is paid on the savings offset against the loan but at today’s savings rates the loss incurred can be easily made up by paying less interest on the mortgage.

first direct spokesman, Jimmy Kelly, comments: “Our research shows offset mortgage lending now accounts for £1 in every £10 being lent to UK mortgage holders, and is on course to reach a record share of new mortgage lending in 2009.”

However, the study revealed that many homeowners are unaware of the benefits of offsetting with 48% of those questioned not understanding the basic principle and 21% unaware that offsetting can save money.

In the past three years, 400,000 new offset mortgages have been put in place, taking the amount of UK homeowners with an offset mortgage to 1.1 million, according to first direct.

By Gill Montia

Source: Financemarkets.co.uk

RLA Presses Chancellor to Boost Local Economies

The Residential Landlords Association has criticized the Chancellor’s budget for omitting a raft of tax incentives to help private rented sector landlords to boost local economies and beat the ‘credit crunch’.

“During this major financial crisis, more and more people are renting rather than buying properties and private landlords are a considerable source of employment for those who repair and maintain them,” says RLA lobbyist Richard Jones.

The RLA appealed for new government incentives to be considered – including a VAT cut to five per cent for renovation and repair work – so the private rented sector can become “a vehicle for increased economic activity.”

As well as the VAT issue Rla continues to seek tax relief for improvements to certain types of shared houses, Capital Gains Tax rollover relief for reinvestment in residential property and changes to stamp duty and land tax.


“Private landlords should be treated as businesspeople who stimulate local economies by employing workmen and buying building materials for property repair and renovation in a sector that provides a key source of essential housing,” says Richard Jones.

“Now that the EU has agreed to a maximum five percent tax rate for renovation and repair work, this government should urgently do the same.  That would enable landlords to bring renovation and repair programmes forward for older properties that are more expensive to maintain and often need refurbishment. 

“If landlords, too, could claim Capital Gains Tax rollover relief for reinvestment, as well as more advantageous taper relief, it would stimulate a currently stagnating property market and help create the same kind of healthy and developed private rented sector as they have on the continent.”

Source: Residential Landlords Association