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2014 UK Property Prices To Increase Further

2014 UK Property Prices To Increase Further

UK Property Prices Extend Best Run Since 2007

There was some good news for property investors looking for capital appreciation this week as it was reported that UK property prices have continued to rise, increasing for the 14th consecutive month in March 2014, the longest run of price growth for nearly 7 years.

Residential property values across the UK increased by an average of 0.6% in March, with the South West and East Anglia regions recording the largest property price increases of 0.8%, according to data supplied by Hometrack Ltd.

Yorkshire & Humberside and the North West regions registered the smallest gains, with property values increasing by just 0.2% in March 2014.

Even independent surveyors are forecasting property prices to increase by a further 6% this year and are including this information on property condition reports for prospective purchasers.

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Governor of the Bank of England thinks Northern Ireland's House Prices Are Not Keeping Pace With Rest Of UK

Governor of the Bank of England thinks Northern Ireland’s House Prices Are Not Keeping Pace With Rest Of UK

Northern Ireland House Prices Not Keeping Pace With Rest Of UK

Mr Carney told the Andrew Marr programme that “if you look at the UK as a whole, everywhere bar Northern Ireland – we are now seeing house prices begin to recover”

On Sunday 16th February, the Governor of the Bank of England, Mark Carney said in a BBC interview with Andrew Marr said that Northern Ireland is the only part of the UK where house prices are not recovering, stating: “If you look at the UK as a whole, everywhere bar Northern Ireland – we are now seeing house prices begin to recover, so it is a more generalised phenomenon”.

However, Mr Carney’s comments provoked a backlash from Northern Ireland’s finance minister Simon Hamilton who reckons that Mr Carney’s remarks were at odds with analysis carried out by Stormont’s Department of Finance and Personnel (DFP).

Mr Hamilton posted on his Twitter account, “Doesn’t tally with DFP analysis. Never thought I’d have to correct a governor of BoE!”

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Manchester Leads UK Property Boom

Manchester Leads UK Property Boom

Manchester Leads UK Property Boom

Increasing property prices are not just a phenomenon belonging to London and the South-East of England, as new data from Nationwide shows that all UK regions are now enjoying increasing property prices as the property boom continues to gather pace.

Every region across the UK saw property prices increase year-on-year, ranging from a 14.9% annual increase in London to a 1.9% uplift in the North.

Nationwide reported that property values increased by an average of 8.4% across the whole of the UK in 2013, as the market revival became increasingly broad-based, but Manchester emerged as the property boom city, with property prices up by 21% over the last year, to reach an average value of £209,627 (GBP).

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Discoveries That Change Property Investors Lives

Discoveries That Change Property Investors Lives

I was fortunate to attend the PIN National Conference at the weekend and I found the attitude of new property investors is far hungrier than my own property ambitions were when I first started out.

These days property investors are becoming far more creative than they were a few years ago and new ideas and investment strategies are emerging almost daily that enable investors to control and profit from property using other people’s money, other peoples mortgages and even ways to profit without actually owning property.

I started my property investment journey in 2005 when I bought my first property at a price that was significantly well below the true market value (BMV) and used that to leverage my position and raised enough finance to enable the purchase of a few more investment properties.

I entered the property investment arena reluctantly on the advice of my wife and I wish I had listened to her a few years earlier as I would have not dragged my feet and we would have bought significantly more investment properties before the peak of the UK property market was reached in 2007, followed by the property crash in 2008 as the financial reasoning of many western nations was rocked by the collapse of the US real estate market and the aftermath affected property markets around the world.

My wife had realised far quicker than I had that there was profit to be made in property and she set about educating me on the benefits. It was one of those discoveries that changed my life and I remain eternally grateful to Rachel for opening my eyes to the possibilities that property investment can bring.

The property crash forced property investors to examine the strategies that had previously enabled them to profit from property and the contraction of financial availability meant that investors had to become even more creative in order to obtain investment properties. Among the new strategies was the emergence of Lease Options (LO) as a method to control property without owning it outright in the UK. The opportunities seized on by property investors already existed and was already being used by investors to control residential property in other countries. This investment method kept savvy investors ahead of the game and has now become widely adapted as a mainstream strategy.

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Average Residential Property will cost

 £267,000 by 2018

Average UK Residential Property Prices Increase

Average UK Residential Property Prices Increase

Average UK residential property prices for 2014

are estimated to be 2.3% higher than in 2007

Forecasts from the Centre for Economics and Business Research (CEBR) suggest that a typical residential property in the UK will cost an average of £227,000 (GBP) in 2014, overtaking the average peak price of residential property observed at the height of the housing bubble in 2007, for the first time.

The CEBR also predict that the average residential property price will be £222,000 (GBP) by the end of this year, 1.4% higher than average property prices reached in 2012.

By 2018, the CEBR expect the cost of a typical residential property in the UK to average £267,000 (GBP).

In 2014, the CEBR estimate that the Government’s Help-to-Buy scheme could raise UK property prices by up to 0.8% without having any appreciable impact on the current housing supply.

However, if the upward trend in residential property prices continues, it could lead to an additional 4,800 residential properties being built in 2015.

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UK Property Market Still Recovering From 2007 Financial Meltdown

UK Property Market Still Recovering From 2007 Financial Meltdown

Five Years After the financial collapse of the UK’s 5th largest mortgage lender – Northern Rock, the UK property market is still struggling to return to its halcyon heyday, many potential homebuyers are still trying to get on the property ladder.

However, educated property investors are cashing in using the best techniques taught by successful property investment experts who have been making money from property since the crash.

What happened?

In late 2007 and early 2008, many UK financial institutions suffered near collapse due to the onset of global financial meltdown. This economic crisis was the worst since the Great Depression of the1930’s.

Northern Rock Fiasco Still Haunting UK Property Market

Northern Rock Fiasco Still Haunting UK Property Market

Banks had to have government bailouts and investors faced economic downturns on stock markets the world over.

This led to the sub-prime mortgage crisis in the United States of America (USA), where US banks had to provide emergency bailouts to the 2 main mortgage lenders, Fannie Mae and Freddie Mac, due to restrictions on the availability of loans.

The repercussions of the US crisis were felt in the United Kingdom, particularly in the property market.

The U.K. credit crunch began because The Bank of England had to provide emergency funding to the 5th-largest mortgage lender in the UK, Newcastle-based – Northern Rock. The Northern Rock Crisis caused panic on many UK high streets.

Investors suffered vast losses due to the high proportion of mortgage loans made to homebuyers in the United States who had a poor credit history. Banking institutions and investors were left unable to offset debt from these sub-prime mortgages.

One UK lender affected by the toxicity of the situation was Northern Rock, who were bound to struggle because they were acting as a specialist mortgage lender.

Although Northern Rock was still profitable at the time, many customers withdrew the contents of their accounts out of fear of losing money. Northern Rock suffered losses totalling over £2 Billion (GBP) and had to be bailed out by the UK government.

Five years on…

The UK property market has changed dramatically since the 2007/8 global credit crunch that affected Northern Rock.

Now, it is much harder for property buyers to even get a mortgage, as lenders have reigned in lending because they are still scared of over exposure and almost all mortgage lenders have tightened their qualifying criteria and revised the loan to value of many of their mortgage products, with some lenders withdrawing what used to be their most popular interest only mortgage products.

Even selling property to potential buyers has become more of a challenge. As property asking prices continue to fall

Statistics Then & Now

Number of properties advertised for sale

2007 – 120,000
2012 – 93,000

A drop of 23%

Number of properties sold

2007 – 129,000 properties sold.
2012 – 74,000

a 44% drop.

UK property asking prices figures for both 2007 and 2012 are almost the same, with 2012 just about £1000 (GBP) less than in 2007.

Number of mortgage approvals

2007 – 105,000 approved.
2012 – 50,000 approvals.

With the collapse and government buy out of Northern Rock, the UK banking system has seen some readjustment but it is safe to say that the UK property market has changed drastically.

Northern Rock, a once solid financial institution was bailed out by the government and became publicly owned 3 years ago is now owned by Virgin Money, and is remarkably still trading, although the government state that lessons have been learned, many UK investors and even homebuyers are still struggling with doubt and it may be that the UK property market will never be the same again.

Now there is a brand new resource available for serious property investors, who want to get the most from property – A step by step zero-to-multi-millionaire Property Investor Roadmap – written by successful Multi-Millionaire Property Experts – Rob Moore & Mark Homer of Progressive Property.

Download your copy here   https://progproperty.infusionsoft.com/go/a294EarlyPPSC2013

Asking Prices Same As Five Years Ago Say Rightmove

Property values at 2007 prices

Property values at 2007 prices!

The property portal Rightmove have reported that property asking prices on their website have dropped for the third month in a row.

The average asking price of a property new to the market in September is now £234,858 (GBP), down from the average value of £236,260 (GBP) in August, falling £1,402 (GBP).

  • New property instructions coming to market are on average £11,000 (GBP) cheaper than they were three months ago.
  • Despite the 0.6% monthly drop in property valuations, asking prices are still 0.7% ahead of last year.
  • Property asking prices are similar to those wanted five years ago.

In September 2007, the same month as the Northern Rock debacle started and the beginning of the UK financial crisis, UK property values averaged £235,176 (GBP).

Miles Shipside, housing market analyst at Rightmove, said: “This year’s extended summer holiday period has left new sellers’ asking prices almost the same as a year ago and, intriguingly, five years ago too.  In truth, the state of the housing market is little different now to this time last year, and prices have stagnated as neither buyers or sellers have been forced to change their behaviour in sufficient quantities to stimulate greater activity. However, back in 2007, few would have believed that house prices would still be the same in five years’ time. This would have been in the context of the previous five-year period to 2007 seeing an average rise of 55%. Equally hard to predict would be the extreme changes the housing market has undergone. While the average new seller’s asking price has remained virtually the same since September 2007, market conditions are much changed. They are patchy and localised and vary markedly for the many different buyer and seller segments.”

According to Mr Shipside the credit crunch winners included home owners in London, where prices have shot up 18.7% in the last five years to stand at £456,237, and cash-rich house buyers.

Credit crunch losers included people in the North, those trying to down-size to release equity for retirement, people with insufficient equity or in negative equity who were unable to fund their next move, and tenants forced to rent as they want to buy but are unable to realistically save for a deposit.

Rightmove asking prices are still far higher than Land Registry, Nationwide and Halifax property prices

  • Halifax is currently quoting the average property value for August as £160,256 (GBP)
  • Nationwide reckon the average property value for August is £164,729 (GBP)
  • Land Registry show the average property value at £162,900 (GBP) for July.
Buy-To-Let Mortgage Fees Increase 70% in 4 Years

Buy-To-Let Mortgage Fees Increase 70% in 4 Years

Since end of the UK property market boom in 2007/8, property investors have seen a dramatic fall in the number of mortgage products available to them, (from over 300 BTL mortgage products in 2007 to less than 100 available in 2012).

To make matters worse Buy-To-Let (BTL) mortgage fees have increased more than 70% in the same timeframe, making a typical investment mortgage arrangement now cost approximately £1,500 (GBP).

Moneyfacts, the financial information provider, claim that the average BTL mortgage fee was £899 (GBP) before the Bank of England base rate fell to 0.5% more than 3 years ago. The average Buy-To-Let mortgage fee is now around £1,514 (GBP), almost double what it was at the height of the UK property boom and with less than a third of the market choice of products.

Sylvia Waycot, spokesperson for Moneyfacts, said “There is no logical reason for the increase in fees charged. Mortgage administration costs cannot have jumped 70%. Credit searches are no more complex than in previous years, so why are fees so high? It could be that lenders are keen to push fees because they are an upfront cost, which means they get the money at the start regardless of fulfilling the full length of a fixed term. And should you not fulfil the full length of the fixed term that can open the door to a whole host of other upfront charges.”

The average arrangement fee on a two-year fixed rate Buy-To-Let mortgage is now around £1,500 (GBP) with a five-year fixed rate mortgage around £1000, if investors are going to put down a deposit of 25% they may secure a rate better than 4.49%.

For a list of Buy-To-Let Mortgage providers click here

Legal Update by Legal 4 LandlordsFollowing a recent High Court decision the new defence to a Section 21 Notice is none compliance with The Housing (Tenancy Deposits) (Prescribed Information) Order 2007

The decision in Suurpere-v-Nice (2011) confirms that the prescribed information must be complied with and if this is not done landlords could be subject to sanction when before the Courts

The Sanctions

  • If a possession claim subject to section 21 of the Housing Act 1988 is issued without the information being properly provided and served, the section 21 notice will be invalid and the claim could be struck out.
  • A counter claim can be made, and if the prescribed information has not been provided or if the deposit was not registered, the Court may award 3 times the deposit.
  • Ultimately the deposit protection is the responsibility of the landlord and as managing agents you have a duty to comply with the regulation on behalf of the landlord.

What is “Prescribed Information”?

• The minimum information required by statute that is to be given to the tenant on registration of the deposit. This must be as a separate certificate and signed by the landlord and tenant and not part of the tenancy agreement.

• This must be a certificate and it must be sent to the tenant with the proof that the deposit has been registered together with any information provided by the individual deposit scheme.

Download our Fact Sheet on Deposit Law Issues and Latest Case Law Updates and Clarifications

The Biggest Property Networking Event of the Year

Property Super Conference 2012

Hi All

I’ve just received an email from Rob Moore of Progressive property, and it has left me stunned. It’s really touched a nerve and I just had to share it with you

Be warned, it is not for the victim or the feint hearted –

Over to Rob:

Dear Mike

For years now Mark & I were warning people about how BIG the Property Crash would be, & how the aftermath of the economy would spread through to repossessions, & many people, including some serious investors, would go bust.

We have to admit, we’ve felt some pain throughout this & the change took some serious adjusting for us, despite knowing the opportunity it brings.

We have a huge challenge right now in our business, and I’m going to share it with you as you may have experienced something similar…

However, Our challenge is not the economy. There are proven strategies to make money in a recession & many of the biggest businesses [like Microsoft] were built on a Recession

Our challenge is not the declining Property market:

  • Anyone can buy far far cheaper than they could before 2007
  • Estate Agents will talk to you now [they need you] & get you deals, even if you are a novice
  • Cashflow is massive & yields are almost double what they were pre 2007

So let’s not kid each other…

With well over 120,000 people subscribing to our newsletter, & over 100,000 people we’ve educated in Property in the last 5 years, We are in a good position to let you know ‘from the ground’ what the real problem is right now [& the experience of over 350 property purchases]…

And Our challenge is not finance:

  • There are more no money in & creative finance strategies now than there ever have been
  • There are more rich investors looking to give you money to invest
  • There are more deals to finance at better discounts

Why is it then?…

that while many ‘Ordinary People’ go bust, many people who’ve been to our events, are in our Community and study our material are buying 5-15 properties in less than a year, many with no money, many quitting their jobs, many making serious positive-never-to-look-back life changes, and many creating 3K – 10K net income per month…

The reality right now is that Darwin’s survival of the fittest is more here and now and real than ever before. And that’s what it’s all about. In these times of in or in the dips between serious Recessions, there are no ‘in-betweeners,’ there are just straight winners [‘contrarians’] & losers [the masses]. It’s as simple as that

So here’s the deal, & what you really must know now…

Our biggest challenge is that despite all that is happening, & all the messages we send out about:

‘Observe the masses, do the opposite’ ‘Be greedy when others are fearful & fearful when others are greedy’ ‘contrarian investing,’

‘Making cash in the crash,’

All of which are proven strategies that neutralise any Recession…

Our biggest challenge is that if we do not shout as loudly as we can about how serious things could be if you are one of the losers & If we don’t do everything we can to motivate, inspire, shock, scare or ethically bribe you into taking action, getting out of your comfort zone & doing something now:

Then we both lose

You lose because unless you are 100% happy with your life exactly the way it is, it won’t just stay the same in today’s economy, your finances & everything else will get worse

You lose because you miss the single biggest opportunity since Nationwide Property data began to make a huge killing in Property

We lose because we couldn’t help you, & we’re sorry, but we’re just not going to let that happen. & we lose because we run a business just like you. We offer products & services just like you. We have the same challenges just like you…

& that’s why this is the most candid thing we’ve ever written

I [Rob] used to be afraid to tell people this, but my mother has chronic arthritis & my father has manic depression, they stay in one of my houses & don’t pay me any rent, and I will not sit by and let this Recession affect them, or anyone that is close to me. I see it every day with all the houses we buy & all the repossessions, & although we help many, we can’t help them all…

But we can help you:

& we know in this email we risk alienating some, especially those who are scared of money & ‘selling’ or ‘being sold to.’ Hopefully not you, but we will get replies to this post & it will cut for some people.

We genuinely want you to succeed & would be honoured if we could help you, or just be a small chapter in a better part of your life & wealth story. However, if you don’t like our ‘directness’ then you really shouldn’t read on…

There are immediate actions you need to take right now in your finances, current business, portfolio or early property career that will see you well on the way to serious money for life, even perhaps before we get out of this Recession

These strategies are new, & not what is being taught elsewhere…

It’s the winners [‘contrarian’] & losers [‘masses’] scenario. We really believe that if you miss this opportunity you are not just ‘missing out on a couple of deals’ you are risking financial meltdown. We see it firsthand and it’s upsetting. If you are at all interested in Property as a vehicle for creating wealth, even if it is pure inquisition, just a 1% feeling, then you must cancel your plans & you need to be at the “Property Super Conference 2012”. Every event we have ever run has sold out & been full, you have seen the 100’s of video’s, audio’s & testimonials & we just wanted to give you one final chance to be there Saturday & Sunday March 3rd & 4th at Wembley stadium, London

We have personally been amazed at what ‘Ordinary People’ have achieved in a short space of time, far more than we did when we started, and we have taken a lot of time & put a lot of energy into getting as many experts as we could in one room for as powerful a weekend as you will find anywhere, with 6 new no money in strategies, 15-20 very candid interviews [2 are Ex Estate Agents!!] & a whole host of other benefits, 13.8K with of time limited bonuses & strategies that you would normally pay 1000’s for: all for less than a good meal for two

We can do nothing more. If you are prepared to give us a weekend of your time, go right now to this page, watch the video if you need details, then get an 85% discount, & please come up & say hi

https://progproperty.infusionsoft.com/go/PPSC2012LIVE/M884/

There are 13.8K worth of genuine bonuses, a money back guarantee, 15 special guests & the most inspiring, controversial Entrepreneur speaker the UK has ever seen

https://progproperty.infusionsoft.com/go/PPSC2012LIVE/M884/

Thank you for your time, it really means a lot

Invest for Freedom, Choice & profit

Rob & Mark

Co-Founders Progressive Property

Progressive Property Super Conference 3rd & 4th March 2012 - Wembley

The Biggest Property Networking Event of 2012

There Will Never Be A Better Time To Invest In Property

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