News & Views Blog

From our roving reporter - Malcolm McCallion 

Put two housing market specialists into a room and they’ll argue bitterly about what’s happening to house prices and where transaction volumes are headed. Put four on a stage, populate the audience with similarly knowledgeable agitators, then sit back and watch the sparks fly … or at least that’s what you’d have thought. Yesterday, however, it didn’t quite turn out like that.

Martin Ellis, Chief Economist and ubiquitous housing market commentator for Halifax/Bank of Scotland was joined on the stage by Jim Pickard, bearish property correspondent of the Financial Times, Jim Cunningham of the Council of Mortgage Lenders and Richard Donnell, erstwhile Savills’ market guru who recently moved to Hometrack as Research Director. The meeting, called “The Great Housing Market Debate” and watched by the great and good of the UK property industry, was a fascinating insight into what the people who know are really saying is going to happen to the housing market, without the media’s screaming headlines.

Each had 15 minutes to pitch their case. Ellis, quoting liberally from his Halifax Price Index, said things were looking fine in general and were going be pretty steady in future. Pickard, who called the recent boom a “bubble” at every opportunity and was good value for his angry young man billing, said things weren’t all that great but there was still every chance that they were going to be pretty steady in future.

Cunningham, pulling lending data from the last two years and projecting two years hence, said things were not too bad and were going to be pretty steady in future. Not to be outdone, Donnell’s angle was that a headline rate disguised a multitude of regional issues but overall things seemed that they were going to be pretty steady in future.

What does this tell us about property market foretelling? That it’s not as much fun as it used to be, certainly. But also that the doomsayers and the cheerleaders have both had to accept that there’s not a whole lot of argument right now. This isn’t going to make you rush home from work to catch the news or dive into a newsagents and grab the latest edition but if there was a headline which captured the consensus on what’s going to happen going forwards you’d read:

Housing market “going to be pretty steady” say experts

You heard it here first.

Posted by Simon at 04:18 PM | Permalink | Comments (3)

A while back a Propertyfinder survey revealed that women call the shots over their partners when it comes to choosing estate agents. Now it appears sisters are increasingly doing it for themselves in the buy-to-let sector according to the latest research from Landlord Mortgages.

It is great to see that the number of landladies is steadily increasing as more and more women realise the investment opportunities offered by residential property. It is also interesting to note that when it comes to financing, female property investors appear to be more cautious than their male counterparts – realising that a larger deposit means smaller monthly payments and less stress.

Landlord Mortgages [via Assetz Property News Service] 

Posted by Bronwyn at 10:27 AM | Permalink | Comments (0)

Ethical mortgages, organic food and solar panels - its all part of an American movement-cum-trade group called Lohas (Lifestyles of Health and Sustainability) that is starting to appear in the UK, according to the Telegraph.

Lohas followers are interested in health, environment, social justice, personal development and sustainable living. They eat organic and Japanese food, do yoga and Pilates, sleep in unbleached cotton duvets, wear hemp clothing and drive Toyota Prius "hybrid" cars. "It's chic," says Ms Mallozzi. "It's not about looking like a sack in Birkenstocks."

...In parts of the US, a home with a high Lohas score gains a sales advantage. "In northern California, Lohas-type homes are selling for 50 per cent extra," he says. "Appraisals [valuations] are definitely up for homes that have solar panels and other ecological fittings." Plus, he adds, they attract tax credits and incentives.

 If you would like to take up the Lohas lifestyle, Propertyfinder has an eco-friendly property in Penzance, an off the plan within the 'shell' of a former covered reservoir in Harden, and a summer escape in Portugal solar panels.

Posted by Bronwyn at 01:27 PM | Permalink | Comments (0)

A new study has revealed that one in three purchases in Britain fall through, more than elsewhere in Europe.

The study, published by Negotiator magazine, also reveals that 66% of UK buyers spend less than 30 minutes viewing the property they will buy and 46% only view it once.

Posted by at 04:00 PM | Permalink | Comments (0)

Daughters receive an average of £7,240 towards getting on to the property ladder, while sons get just £4,200. Four times as many girls as boys also received £20,000 from their mother and father ... Parental bias towards helping girls get on to the property ladder does not stop with financial assistance, with 31 per cent of people insisting on approving the area their daughter wanted to buy in, compared with fewer than two out of ten parents of sons.

Posted by Bronwyn at 10:48 AM | Permalink | Comments (0)

Comment on the budget from Nicholas Leeming, Director of Propertyfinder.com

The latest data from the ODPM shows that the average price of properties bought by first time buyers is £135,742, so raising the threshold for stamp duty by just a smidgeon to £125,000 will do little to help the majority who are struggling to get a foot on the housing ladder. If the Chancellor is serious about improving the affordability of property for the less well off, there will need to be more significant changes.

It is appropriate that rising property prices should be recognised by the inheritance tax system, and by raising the threshold to £325,000, the Chancellor has signalled his recognition of the strength of public feeling on this issue. The change is well over-due, but it is nonetheless welcome as it will ease the burden somewhat on the many people in this country who are far from rich but are now being caught by inheritance tax, given that the threshold has not kept up with inflation.

Posted by at 10:11 AM | Permalink | Comments (1)

They bought the schoolhouse from Tom “Doctor Who” Baker in 2003 for £650,000, and spent £50,000 refurbishing it and building a music studio above the garage. It is now on the market for £800,000, because with the advent of not one, but two little pairs of feet, Sorrell and Reeves acknowledge the house will be too small.

Posted by Bronwyn at 12:38 PM | Permalink | Comments (0)

It seems that you can forget about damp in the cellar, the person who lives next door can be just as important when deciding where to live, and how much to pay.

The latest research by propertyfinder.com reveals that nightmare neighbours can take thousands off the value of a property.

The survey carried out by propertyfinder.com asked people to choose the best and worst types of neighbours from a range of categories.  Squatters top the list of neighbours from hell, with 90% of respondents voting these perennial outcasts as worst, but students came a close second with 63% of the vote.

Unsurprisingly “slamming doors, arguments and drum kits” put families with teenagers third on the worst neighbours list for 36% of respondents.  Young flat sharers’ disruptive lifestyles mean that they polled fourth from bottom. Childless couples, pensioners and singles were voted the perfect neighbours.

The statement issued by the NAEA confirms the introduction of licensing for Houses in Multiple Occupation (HMOs) to try to curb problems experienced in local communities by so-called ‘studentification’.  Problems include untidy property exteriors, rat attracting rubbish over-spills, and headaches caused by loud music and rowdy revellers heading home after a night out.  The licensing means that landlords, or lettings agents will be responsible for the property and ultimately, the behaviour of the student residents.

Results by propertyfinder.com also reveal concern among householders that unsuitable neighbours damage property prices by a lack of interest in the upkeep of their properties, dragging down property prices for surrounding homes.

Nicholas Leeming, Director of propertyfinder.com commented:

Students are notorious for having a good time and living in messy conditions, but our results show a greater concern among householders regarding the detrimental effect students can have on the price of their property.  Our neighbours have a very significant influence on our quality of life, especially in urban areas, and increasingly, house hunters are prepared to pay a premium for a quiet, trouble-free life.
Today’s statement by NAEA is no doubt a welcome announcement for those living within a student area or next door to a student property.

Posted by at 01:07 PM | Permalink | Comments (1)

Figures released on Monday show that there is a continued migration of advertising expenditure from traditional media to the online world.  Over the last 12 months, the total UK advertising industry grew by only 2.1% to GBP 15.86 billion in 2005.

Online was the big winner with a whopping 73% increase in online advertising expenditure over 2004 numbers.  In 2005, they estimate that GBP 1.13 billion was spent online with classified advertising receiving GBP 748 million and display advertising receiving GBP 383 million.

Online advertising growth seriouosly outstripped all other media with the next fastest growing medium being outdoor advertising that grew at only 5.8%. While the big loser was advertising on radio which shrank by 4.5% over the same period.

Overall, online accounted for about 7% of the GBP 15.9 billion UK advertising industry. This is up from just over 4% in 2004.  The overall market grew by only 2.1 percent.

For more information see http://www.adassoc.org.uk/News_Release_170306.pdf 

Posted by Simon at 12:48 AM | Permalink | Comments (0)

There has been a huge rise in the numbers of single older people living alone, according to new research by the Office of the Deputy Prime Minister.  Figures show a massive 53% rise in single households over the period, compared to the overall figure of 23% for the same years.

Is this because more than two in five marriages now end in divorce?  Or are there more Bridget Jones types out there?

The revised projections from the Office of the Deputy Prime Minister are trend based and indicate what would happen if past demographic changes continue.

They show a massive 53% rise in single households over the period, compared to the overall figure of 23% for the same years.

The ODPM report said, "One person households account for 150,000 of the 209,000 annual growth. Most of these one person households are in the older age groups."

Posted by at 03:05 PM | Permalink | Comments (0)

Propertyfinder.com’s February survey has seen the largest jump in confidence in the housing market since May last year when confidence rebounded after a marked pre-election nosedive. Confidence is now back to levels not seen since early 2004, when Mervyn King, Chairman of the MPC, famously warned that the house price falls should be expected. 70.5% of respondents now believe the housing market will rise over the next twelve months, up from 62% in January.

On average, propertyfinder.com’s survey shows that house hunters expect prices to rise by 4.0%. This contrasts to the November 2004 low when 67% expected prices to fall and by 8% on average. Jim Buckle, Chief Executive Officer of propertyfinder.com commented:

All our indicators point to a healthy, balanced housing market which is good news for everyone. A confident market dispels the fear factor from the decisions that people need to make over their homes. What’s more, modest price increases broadly in line with earnings growth mean that affordability is not being stretched any further.

Posted by at 11:44 AM | Permalink | Comments (4)

A Google sponsored study by TNS has revealed that UK internet users spend an average of 164 minutes per day or 41 days per year online compared to TV where users spend an average of 148 minutes per day or 38 days per year.

Given this increase in usage of the internet, it is not surprising that sites like www.propertyfinder.com are experiencing record visits.  In February, 1.2 million people visited the site, the largest readership in any one month.

Of the 1,030 people surveyed, 66% said that they had increased their usage of the internet over the last 12 months.

What is interesting is that the survey found that men are spending longer on line than women with men spending an average of 172 minutes per day versus woman who spend an average of 156 minutes per day.

One of the most popular activites online is shopping.   The survey found that internet users now spend an average of 446 pounds online each year. 

Unsurprisingly, it is users within the Greater London area that spent the most time online with an avearege of 183 minutes per month closely followed by the Scots with an average of 181 minutes per month.  Internet users in the Greater London area also spent more online averaging 517 pounds per internet user per year.

Here is an article from the Guardian on the Google survey http://business.guardian.co.uk/story/0,,1726126,00.html 

Posted by Simon at 09:13 AM | Permalink | Comments (1)

Househunter numbers rise 54% compared to January 2005

Property enquiries rise faster still as more househunters ‘get serious’

The latest propertyfinder.com research reveals a sharp rise in interest in UK property. The number of people searching for property on the site hit 1.1 million in January, up 54% compared to the same period in 2005, when the property market was languishing in the doldrums. Since August 2005, househunter numbers have risen 30%. Propertyfinder.com passed on almost half a million leads from these prospective buyers to estate agents in January, 61% more than last the same time last year.

Furthermore, optimism among buyers is increasing faster than among sellers, which is a further sign that buyers are more prepared to commit to a purchase. In January, 64% of buyers expected prices to rise over the next 12 months, up from 61% in December. The proportion of optimistic sellers remained static at 75%. On average January’s buyers made offers 4.3% below the asking price, up from 5.5% below the asking price in November.

Jim Buckle, Chief Executive Officer of propertyfinder.com commented:

We have been surprised by just how strongly interest in the property market is reviving. What’s more, the fact that the number of enquiries we are passing on to agents on specific homes advertised is rising faster than the number of people looking at property, shows that there are far more serious buyers now and far fewer who are simply browsing. The rise in optimism on the market among buyers further underscores this notion. As buyers expect a stronger market in 2006, they naturally have greater confidence to actually press ahead

Househunter confidence

Adjusting for the size of the market, the regions seeing the most interest are London and the South East, where enquiries are up 74% since January 2005. Outside the South East, Cardiff is also exceptionally strong.

In total, 60.4% of survey respondents believe that property prices will rise over the next 12 months, in line with December’s data. There is a 76% correlation between househunter confidence and transaction levels, therefore this strong, steady reading signals a continued recovery in transaction volumes.

The revival in first time buyer interest was sustained into January. First time buyers represented 36% of househunters, in line with December’s 37% and well up on the average level for 2004 of 28%.

Jim Buckle concluded:

The property market has had an upbeat start to 2006, in complete contrast to 2005. Interest rates are at a comfortable level and with property prices rising more slowly than incomes, housing affordability is improving. This is tempting first time buyers back into the market. Sharper income growth in London and the South East is providing a particular boost to that market after a slack couple of years. We believe the Bank of England acted appropriately in holding rates last week. A rate cut would have risked reigniting a boom in prices which could actually undermine the recovery in housing market activity by putting people off again

Posted by at 11:56 AM | Permalink | Comments (2)

It is said that moving house is more stressful than divorce. But with a bit of careful planning and organisation, you can help make the move as painless as possible. The better you plan for the move, the more organised you can be and the less likely you are to run into difficulties on the day.

When you have exchanged contract and know the completion date of the move you can begin making the arrangements. Contact your phone company to organise reconnection or installation of your new phone line. It is also advisable to contact your gas and electrical companies to give details of the move.

Inform all appropriate people of your change of address, including the post office, who will be able to redirect your mail from the date you will move in. Your local authority will also be keen to know that you are moving. Read your meters and pay any outstanding money owed, cancelling any regular deliveries – a common oversight of home movers.

Plan in advance where you intend to put furniture in your new property. There is nothing more time consuming and frustrating than being surrounded by boxes and furniture in your new home with no idea of how to begin sorting, and chances are you will be tired already from the days activities. With a bit of planning, you will be able to instruct your removal company to place heavy objects in the relevant rooms, making life a great deal easier for you.

Of course, you may have decided that you want to do the move yourself, rather than enlisting the help of a removal firm. Most people choose to employ others to do the hard work for them but this is really a question of money, the distance you are moving to and the amount of stuff that you have.

If you do the packing yourself and do not pay to have it done for you, it is vital to mark all boxes with your name, the room where you want it placed and what each box contains, marking fragile items as such.

It may help your peace of mind to move some stuff yourself, particularly fragile objects, as you will know that they are in your care. Ensure that all electrical items are unplugged and that cords are wrapped tightly and secured and be sure to have your large appliances serviced and disconnected. Your removal company can help you with this.

Check parking restrictions. If you live in a big urban area such as London, it may not be possible for the removal van to park for long periods of time and you may need to obtain permission from your local council. If you live on a busy main road, you may need to decide upon an alternative nearby street for the removals van to park, although this may make life harder for the removals team, and for you if you have opted to help out! It is also important to tell your removal company if access to your property is restricted, as this will affect the overall cost. Alternately, you may live in a remote rural area, in which case it is advisable to provide your removal company with a map in advance.

Have a checklist on the day of the move to ensure that it runs according to plan and when all your items have been delivered, be sure to tick them off your list. With a bit of preparation and organisation, you can turn a potential nightmare into an altogether more pleasant experience.

Posted by at 11:44 AM | Permalink | Comments (5)