News & Views Blog

The Council of Mortgage Lenders (CML) reported today that the number of houses being repossessed by mortgage lenders in Britain rose in the second half of last year by 9% on the first half.

The yearly total of 17,000 is 65% higher than recorded in 2005 and the highest since the turn of the century.

CML analysts claim that this means one in every 690 mortgages end in repossession. At propertyfinder.com, Warren Bright commented:

Today's figures on repossessions add further evidence that the housing market had begun to slow naturally before the last interest rate increase was imposed. Repossessions still remain very low by historic standards and we are highly unlikely to see a return to the chaos of the early 1990s.  Most homeowners have significant amounts of equity in their homes to cushion them against the worst.  However, it is clear that further interest rate increases are unwarranted.

CML arrears and possession statistics 

Posted by Bronwyn at 03:21 PM | Permalink | Comments (7)

• 95% of Britons expect to won their own home in their lifetime.
• Only 49% of under 35s own property today compared to 59% in 2001.
• Brits are unrealistic about their chances of success in getting on the property ladder.
• Older people are more unrealistic than young people.
• Three million more people will retire in rented accommodation than expect to.
  

British aspirations for home ownership remains undiminished according to our latest survey, however Brits are unrealistic about their chances of success in getting on the property ladder, and we get more unrealistic as we get older.

We asked 1145 people what their expected housing tenure would be at different points in their life.

Among younger people, 57% expect to have a foot on the property ladder by the time they reach the 24-35 age bracket. With 29 the average age of a first time buyer in 2006 (source CML) this is the key home-buying age. By the time they reach 64, 95% of respondents expect to own their own home, while only one in twenty (5%) expect to be living in private or social rented housing.

Compared to current housing tenure, people are clearly overestimating their chances of becoming homeowners. To a large extent, people's expectations are rooted in the past. In 2001, 59% of 25-34 year olds were homeowners according to the census. Since then, sharply higher house prices have rapidly eroded their ability to buy a home, but not their expectations of success.

In fact, the further into the future people think about their lives, the more they over-estimate the likelihood that they will have bought their homes. Nine tenths (89%) of those surveyed expect to have bought a home by the time they reach 49. However, only 74% of that age group have made it today. 95% expect to own their own home bu the time they reach 65, while only 80% of people of that age today have actually achieved that aim. Warren Bright, Chief Executive of propertyfinder.com said:

The desire to own a home remains deeply ingrained in the national psyche. Neither profound social changes in the way we live, move and work, nor high house prices have diminished Britain's appetite for bricks and mortar. But many people's eyes are bigger than their wallets and they are likely to be disappointed. Indeed people are more unrealistic about their long term likelihood of woning a home than about their immediate prospects.

Given the lower levels of home ownership we are seein gin today's younger population and even allopwing for later inheritance to enable some to catch up, fewer people will be home owners 30 years from now than they are today. Warren Bright concludes:

In future a smaller proportion of people will be home owners than presently. Take retirees as an example. We estimate that qaround 3.1 million of today's over 30's who had expected to retire in their own homes will actually live out their golden yeqars in rented accommodation. Most of these people will find homes in the private rented sector. This heralds a big change in the UK's housing tenure and is good news for the burgoening army of property investors who will see tenant demand extend beyond traditionally younger groups to become an option for the whole population. 

Posted by Bronwyn at 10:30 AM | Permalink | Comments (0)

Today, the first issue of the Leeds Property Guide lands on the doorsteps of tens of thousands of residents in Greater Leeds area. The Property Guide features properties for sale in Central Leeds, South Leeds, North Leeds, Pudsley, Morely, and East Leeds.

Keep an eye out for it, and let us know any thoughts or suggestions. For those of you not in Leeds or Manchester, watch this space for the next location...

Posted by Bronwyn at 02:12 PM | Permalink | Comments (0)

Realestate.com.au is the number one property portal in Australia, and we were purchased by them and News International 14 months ago.

Our friends at Trulia were fortunate enough to interview our CEO at the Inman Real Estate Connect in New York. If you are interested in hearing his insight into the business of property portals have a look at this:

Posted by Bronwyn at 11:34 AM | Permalink | Comments (0)

The January survey revealed that confidence was slipping amongst both sellers and buyers. 80.5% expected house prices to rise by 5.0% over the coming year, down from 83.9% expecting prices to rise by 6.3% in December last year.

Warren Bright, Chief Executive of propertyfinder.com said:

The impact of the August and November rate hikes wasn't felt immediately. Recent reports from RICS and Halifax suggested some of the heat may already have begun to dissipate. The latest move by the MPC will further increase the pressure on mortgage borrowers.

With inflation at an 11 year high of 3.0%, it is now a virtual certainty that interest rates will rise again at least once this year, making it even more difficult for first time buyers to get on to the property ladder.

With this increasing demand for rented accommodation from aspiring first time buyers, our research has also revealed a rise in the number of homes being purchased as a buy-to-let investment.

 
Seller v Buyer confidence
Entering 2007 sellers remained in a fairly strong position - with demand from buyers sufficiently high that they hardly needed to compromise on price. Propertyfinder's research conducted prior to the MPC's latest rate rise this month showed that sellers were only willing to accept, on average, a discount of 3.8% on the asking price (compared to 4.7% in December 2006).

Furthermore, the research showed many home buyers makeing offers above the asking price to increase their chances of securing a home. For the first time since October sellers were more optimistic than buyers (89.6% and 87.3% respectively), expecting house prices to rise by 6.2% over the next 12 months compared to 5.9% expected from buyers. Warren Bright said:

Recently, sellers have clearly had the upper hand, with limited stock of property on the market relative to the number of buyers out there. With confidence starting to wane and interest rates now on the up, it is likely that we will see a shift in the balance of power from sellers to buyers as demand for property begins to cool.

The financial markets are now suggesting that another interest rate increase is a done deal, with some reports suggesting that rates may go as high as 6.0%. We had expected the housing and mortgage market to slow naturally in 2007 but a more abrupt adjustment is now a real risk. It's time for a pause so the market can digest the cumulative effect of this succession of rate increases. 

Posted by Bronwyn at 04:39 PM | Permalink | Comments (0)

I'd like to put an offer in on a great property, however it is situated in a conservation area. What are the implications I should consider?

Alex Woodleigh Smith, from Savills suggests:

Conservation areas were created by the Civil Amenities Act of 1967. They are defined as "areas of special architectual or historic interest, the character or appearance of which it is desirable to preserve or enhance."

Councils are solely responsible for deciding where a conservation area should be and very often you will be able to obtain a character profile for the area in which the property of interest lies. A character profile will describe the special interest or appearance of each area and contain broad design guidelines to help efforts to enhance or preserve the conservation area. If you are about to offer on a property that falls within such an area you should first check what the design guidelines are.

If you plan to expand the property you will not only need to obtain the normal planning consents but you may also need 'conservation area consent' - particularly if demolition is involved. You should also be aware that most trees that fall within a conservation are protected and treated in many ways like trees under preservation orders. As a guide you should contact the council before attempting any major work on such trees. If you are in any doubts as to whether what you plan to do to a property is feasible or not you should contact the council and speak to a planning officer or the environmental department for further guidance.

Posted by Bronwyn at 04:29 PM | Permalink | Comments (0)

I am thinking of putting my house on the market and a friend commented that perhaps redecorating in more neutral tines - I currently have strong colours - would be advisable. Is this true?

This week's property expert, Wendy Peterman, from Petermans in Herne Hill suggests:

 First impressions count and presenting a welcome home in neutral tones, rather than very strong, bold colours suited to an individual's taste and personality is important.

Neutral tones can also help spaces appear bigger than they really are, particularly in smaller rooms where darker tones redcuce the feeling of space. Using mirrors and neutral furnishings is another good idea. Houses crammed with personal collections such as dolls or pets' photos will not help your marketing.

Most people can see beyond cosmetics that need altering but some can't so if you are thinking of pursuing the neutral tones route then it is certainly not a bad idea and won't hinder your sale pricess - if anything it is very likely to help.

Other tips to make the most of light and windows, decoration and maintenance include:

1. Use artificial light to hightight dark corners and hallways to make it look more spacious.
2. Hang white muslin strips over a window to cover a bad view.
3. Give your home a fresh coat of paint to smarten the overall look of the property.
4. Finish off any DIY jobs started and replace old looking door handles and glass panes.

Posted by Bronwyn at 11:30 AM | Permalink | Comments (0)

I'm going abroad for a couple of years and want to rent out my three bedroom flat. Should I rent it furnished or unfurnished?

David Cohen from Richard James and Co suggests: 

It is an interesting dilemma whether to rent furnished or unfurnished.

Sometimes circumstances dictate what you should o. Clearly if the apartment is already furnished with appropriate furniture, it would be an inconvenience to unfurnish.

Conversely, if it is unfurnished, there is a substantial expense to purchase all the necessary furnishings and effects. Generally, it is possible to obtain similar rent whether a property is furnished or unfurnished. Prospective tenants with their own furniture may even pay more for an unfurnished flat. The majority of properties on the market are furnished (about 70%) which roughly matches the number of people who are looking (also about 70%). It may therefore take longer to rent unfurnished, but a similar price is achievable.

My suggestion, in your particular case, is that if the property is already furnished with appropriate furniture, you should definately rent it furnished as it will probably rent quicker and will probably rent quicker and will be less hassle. If the furniture is extremely valuable, antique or of personal importance, you must take great care to access the calibre of the tenants, or arrange for those items of personal importance to be removed. 

Posted by Bronwyn at 09:40 AM | Permalink | Comments (0)

The "Principality of Sealand" is a rusting 5,920-square-foot (500-square-meter) platform perched on two concrete pillars in the North Sea off eastern England. It's one of many so-called micro-nations—curious places where, if they actually exist, the chief export seems to be hyperbole.

It is said to come with its own citizens, government, money, stamps, flag, national anthem, and other trappings of nationhood—all for about a billion U.S. dollars.

To read more about pirates, royalty and Sealand visit the National Geographic website.

Posted by Bronwyn at 03:20 PM | Permalink | Comments (0)

First Impression
Improve your home to neighbours or visitors by making the garden tidy, trimming lawns and putting up winter hanging baskets - these are all ignored as autumn descends so look untidy at this time of year.

Inside
Minimise furniture and ornaments; use mirrors to give an illusion of space; clear surfaces - especially of those leftover Christmas cards and baubles; shift junk from spare rooms to the loft or garage - or just throw it away; ensure cupboards, basements and atticks are tidy, even if you are the only one seeing them; check the boiler, fuse box and so on.

Outside
Paint the front door; polish knobs and metalwork; ensure paths and steps are easy to walk on; check guttering and roof tiles.

DIY
Inspect your home for dripping taps, sqeaky doors, blown light bulbs and so on. Tidy up any peeling wallpaper or damaged paintwork and finish any outstanding jobs.

Posted by Bronwyn at 09:34 AM | Permalink | Comments (0)

According to our latest survey, home makeovers will be all the rage in 2007 as re-decoration tops the New Year’s resolutions list.

The survey reveals that the majority of home owners are keen to make some home improvements in January, but on a budget.

Cosmetic Enhancement
Topping the tables as the most popular home improvement to undertake in January is re-decoration, with 33% of respondents determined to make the changes. Money is often tight in January and a lick of paint is the quickest way to brighten up a home on a budget.

People seem keen to improve the aesthetics of their home in 2007, with garden makeovers, new bathrooms and new kitchens all in the top five “must do” things for the New Year.

Warren Bright, propertyfinder.com's Chief Executive Officer said:

After the Christmas lull, the property market kicks off in January - 19% of those surveyed said they planned to sell their home in 2007.  Freshening up the house and garden can maximise your chances of making a quick sale. A fresh coat of paint can do wonders in helping to appeal to buyers, and is obviously the most economical way to make over your home. Most gardens look a bit of wreck in the winter, but it’s a good time to lay a new patio or do some landscaping ahead of the Spring – that’s when gardens look their best and the housing market is at its busiest.

Going green or saving pennies?

Second on the list of people’s most popular resolutions were plans to make their homes more energy efficient, with over 27% of respondents saying they definitely will, and almost 39% saying they were likely to make the changes.

75% of people would improve energy efficiency in their home to save money on their fuel bills, as opposed to just 26% who would be motivated by helping the environment. 48% of people answered that they would make their home more energy efficient in order to increase the value of their home.

Remortgaging to find a cheaper deal came next on the list after all these improvements – as homeowners were again motivated by a desire to save money.

Warren Bright commented:

With energy prices still sky high this winter people have resolved to make their home more energy efficient in the New Year. Other than the usual double glazing and loft insulation, lesser known energy saving methods - such as cavity wall insulation and under-floor insulation can save your bills and are comparatively cheap and very easy to install. Taking energy saving measures can add significant value to your home too.

How much do we spend?
The median budget for Britain’s homes in 2007 is £3,774, although almost a third (31.6%) said that they would not spend more than £2,000 on improvements.

Money matters could spark trouble between the sexes, as men and women have very differing ideas about budget. Whilst only 21% of women would be willing to spend over £10,000, nearly 30% of men would.  However, although men are willing to spend more money on these improvements their female partners seem to control the purse strings. Those who are married or live with a partner are much less likely to spend large amounts of money on January home improvements than those who live alone.

Warren Bright concluded:

Although very many people plan to change how their homes look in 2007, very few plan to change who they live with. Moving in with a partner, expecting children to fly the nest, or taking ageing parents in all feature very low on people’s list of priorities for 2007.

 Looking to renovate? Read our Top 10 useful sites.

Posted by Bronwyn at 09:28 AM | Permalink | Comments (0)

With the shortage of properties for sale these days, as many as 41% of people say they'd consider buying property requiring renovation according to our latest survey, and we're willing to spend an average of £18,500 on renovations.

Property renovation is a big business, fuelled by TV programmes and promises of big returns. One survey suggests that DIY spending has increased by 76% in the past ten years, amounting to a hefty £11.3b per year in the UK.

Renovations most likely to improve the monetary value of a home include loft conversions, a new kitched, painting and decorating, an extension/extra rooms, and new bathrooms.

But while it's tempting to rush headfirst into a renovation project, experts urge caution. Here is your guide to savvy home improvements.

1. Stay focused. Ask yourself 'what do I need/want from my home?' - more space, more bedrooms, more bathrooms, more light, somewhere to work?

2. Consider enlisting an architect or builder to help crystallise your thoughts. Experts can help guide you through the maelstrom of planning permission and building regulations.

3. Set a budget - and stick to it. Add in a contingency fund (about 5-10% of the total).

4. Get lots of quotes and find out how long the work will take.

5. Contact your local planning office. Planning permission is required in listed buildings, conservation areas, if you are changing the exterior of the house (extensions, new windows etc) or are altering its use, such as dividing your home into flats.

6. Be patient. Bear in mind it could take up to eight weeks to get planning permission.

7. House hunting? Consider bringing your builder or architect with you on viewings to assess how pricey/realistic your dreams may be.

8. Assess whether your proposed jop will boost - or lower - the saleability or value of your house. Contact your local estate agent to discuss the ceiling value in your road or area.

View the top 10 useful websites for renovators.

Posted by Bronwyn at 09:08 AM | Permalink | Comments (0)

Surveys very much depend on what you are buying. A house or a flat in a conversion should always have a structural survey done, but a flat in a block will not normally need one.

If you are a cash buyer you may wish to have an independent survey for peace of mind that you are not paying over the odds for your property, but if you are getting a mortgage your lender will arrange their own survey. If you are buying a short leasehold property then it is prudent to get a leasehold surveyor who will advise you on lease extension costs.

Posted by Bronwyn at 05:33 PM | Permalink | Comments (0)

Today the Bank of England raised interest rates to 5.25%, raising them to the highest point in five and a half years and a surprise to analysts, who were predicting the rise in February.

It is reported that the Committee judged a 0.25% increase was necessary to bring the CPI inflatuion back to the target in the medium term.

Warren Bright, chief executive of Propertyfinder.com, said:

Today's interest rate increase is bad news for the housing market. The impact of the August and November rate hikes still needed some time to take effect and this move by the MPC will prematurely increase pressure on home buyers. We expected the market to slow naturally in 2007 but a more abrupt adjustment is now more likely.

Go to Radio 5 to hear listen to more from Propertyfinder.com and other experts on this topic.

Posted by Bronwyn at 01:50 PM | Permalink | Comments (0)

With the prospect of rising intrest rates, whay type of mortgage is going to prove the most economical?

Alasdair Mackenzie from Cluttons says:

The best two year tracker rate is currently about 0.3% less than the keenest priced two year fixed rate.

For anyone requiring certainty of their monthly payments, they should be taking a fixed rate for the length of time they want that certainty. Second guessing interest rate changes can be a dangerous game and therefore in the current climate only those that could readily afford any increase should be looking at tracker rates. You can still fix rates over five years at under 5% which many would believe to be a sound long term option. 

Posted by Bronwyn at 05:54 PM | Permalink | Comments (4)

* For at-a-glance information on planning visit onlineplanningoffices.co.uk.

* To find a reputable builder contact the National Federation of Builders.

* Or, try the Federation of Master Builders.

* For an architect, try the Royal Institute of British Architects.

* Download valuable information on building regulations from the Government's Planning Portal.

* To find a structural engineer visit the Institution of Structural Engineers.

* The local land registry will tell you what your neighbours or predecessor paid for their house.

* Contact RICS for a lost of local chartered surveyors.

* Do your homework. Where is it best to invest? Visit Propertyfinder to research property price information and what you can get for your budget.

* Check the dates and venues for this year's nationwide Homebuilding & Renovating Shows.

Posted by Bronwyn at 03:17 PM | Permalink | Comments (0)

Propertyfinder.com likes to be at the forefront of innovation and doing things differently in the property portal market.

In the next week, the first issue of the Manchester Property Guide lands on the doorsteps of tens of thousands of residents in the Greater Manchester area. The Property Guide features properties for sale in Manchester, Cheshire, Oldham, Salford, Bolton, and Bury.

Keep an eye out for it, and let us know any thoughts or suggestions. For those of you not in Manchester, watch this space for the next location.

Posted by Bronwyn at 03:19 PM | Permalink | Comments (0)