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One In Five Property Buyers Pay Over The Asking Price To Secure Purchases

One In Five Property Buyers Pay Over The Asking Price To Secure Purchases

20% Of Property Buyers Are
Willing To Pay Premium Prices

One in five buyers willingly paid more than the original asking price for a residential property during the month of March, as the competition in the UK property sales market continues to heat up, according to the latest data published by the National Association of Estate Agents (NAEA).

According to the NAEA data, the average number of residential properties available for purchase through estate agencies across the UK has fallen for the sixth consecutive month (March 2014) resulting in the number of properties available for sale reaching an almost a 10-year low.

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Demand May Outstrip Supply As Lenders Brace For Help-To-Buy Stampede

Demand May Outstrip Supply As Lenders Brace For Help-To-Buy Stampede

Demand May Outstrip Supply As Mortgage Lenders Brace For Help-To-Buy Stampede

Over 600,000 residential properties are eligible for the £12 Billion (GBP) scheme, while Zoopla says buyers will still need average £10,000 (GBP) deposit

More than 600,000 residential properties on the market are eligible for inclusion in the £12 Billion (GBP) second phase of the Help-To-Buy scheme, according to the latest in a series of surveys leading to predictions that UK mortgage lenders will be inundated due to the expected demand for the government-backed mortgages.

Details of the 95% mortgages, which are available to existing property owners as well as first-time buyers, are to be unveiled by Chancellor of the Exchequer, George Osborne, with some banks expected to invite loan applications within hours of the announcement expected next week.

The second phase of the Government’s flagship scheme to allow more first-time buyers and second steppers, wider access to the UK’s residential property market has already been brought forward by three months, with high street bank Santander claiming that up to 1.7 million people want to use the scheme.

The Help-To-Buy scheme will cover existing residential properties as well as new-build properties, but as yet there are no plans to allow Buy-To-Let property investors use the scheme.

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Green Deal Is A Joke

Green Deal Is A Joke

Bad Business Practices, Long Term Debts, Unqualified assessors – Green Deal getting bad press

The Government heralded the launch of the “Green Deal” in January this year as a groundbreaking flagship initiative that would help struggling families cut energy bills, however, it appears that the general public are 99.9% against the idea.

The intention of the Government was to encourage millions of UK home owners to take out “Green Deal” loans in order to pay for money saving improvements to properties, such as; loft insulation, double glazing, boilers and other energy efficient measures with the aim of cutting a typical family’s energy costs by as much as £50 a month.

The loan would be repaid over an agreed timescale of up to 25 years, but the debt is attached to the property rather than the current owner, which means the debt could be passed on to any new buyer. As a result, property vendors could face demands from prospective buyers to clear any outstanding debt, which could also see them facing a charge or early repayment penalty of up to £6,000 (GBP).

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Quick Property Sales Fraud Risk

The FSA has warned homeowners in financial difficulties who are looking to sell their home fast to beware of committing fraud.

FSA Warns of BMV Property Fraud

FSA Warns of BMV Property Fraud

The financial regulator says it has evidence that some below market value (BMV) or distressed property sales may involve fraud, where the buyer (a company or an individual), asks the selling homeowner to state that the property has been sold for its full open market value, rather than the agreed purchase price.

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According to the latest property report from property advisors Colliers International, the UK is still seen as a safe haven for property investment.

The Colliers report shows that overall property transaction levels remain fairly limited as property investors take stock.

London continues to lead the way for the UK for international property investment, however, regional markets are seeing some movement and prime rental yields are stable.

In the residential property sales market property price declines are expected to be modest in 2012 as banks and other lenders begin to push up mortgage rates.

Director of research and forecasting at Colliers International, Walter Boettcher, said: “The UK economy remains flat with GDP in the first quarter of 2012 falling by 0.2% quarter on quarter. In contrast, the weighted average of purchasing manager indices over the first quarter was 54.5 consistent with economic expansion. Retail sales volume rose 0.8% over the quarter; and unemployment improved slightly, falling from 8.4% to 8.3%. Capital markets showed few effects of the announcement. Positive news from the US and successful bond auctions in the Eurozone suggest that weak performance is accompanied by stability. The downside has already been factored in and other data sources suggest greater underlying strength. The French election has also had a very limited effect. If anything, the result has boosted safe haven property investment both in the UK and Europe”.

UK investors are facing stiff competition from foreign markets as international property investors, who are able to obtain finance, look to the UK for bargain property prices and high rental yields

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UK landlords with rent guarantee insurance stay happy despite property doom and gloom

Landlords with Rent Guarantee insurance remain happiest

New data released by Nationwide and Hometrack show that overall UK residential property values have fallen when compared to this time last year and the fall has been attributed to the changes in stamp duty.

The average residential property value in March 2012 was £163,327. That is 0.9% lower than property prices were in March 2011, the largest fall in UK house prices since June last year.

Nationwide’s figures showed a fall in nearly every region of the UK, compared with the previous quarter and data from Hometrack shows a clear North – South divide.

However residential property prices increased by 0.6% in the north of England, property values also increased in Scotland, and Greater London.

UK mortgage applications were also affected by Stamp duty changes, approvals dropped to 48,986 in February 2012, some 9,000 lower than the 25-month high recorded in January 2012, the lowest mortgage approval figures for three years, according to the Bank of England.

UK residential property prices may have fallen for the first time in six months, but UK landlords with Rent Guarantee insurance are still smiling.

Buy To Let landlords remain unfazed by the dip in UK residential property prices as they continue to maximise their rental returns, as demand for rental property continues to increase. In fact BTL landlords have been experiencing higher rental yields during the past 6 months than at any other time since the economic crash in 2007.

UK landlords are utilising specialist products and services such as Rent Guarantee insurance to keep the cash coming in, ensuring that the rent is paid, irrespective of any changes to their tenants circumstances.

Residential property values increasingly disparate between North and South in UK

Residential Property Disparity Between The North and South

UK property values posted a monthly price rise for the first time in 20 months in March on the back of increased demand, activity and a scarcity of residential properties for sale.

However, UK Property Prices overall were up in the South and down in the North

According to fresh data released by Hometrack, UK residential property prices are still rising in the South, but property values have seen widespread falls throughout the East Midlands, Wales and the North.

During March 2012, residential property values did dip a little in a few parts of London, the South-West and East Anglia. However, in Yorkshire and Humber, about half the region saw property prices fall. Property values were also down in the East Midlands, North West and Wales,

With such widespread variations, the Hometrack survey shows that nationally residential property prices as a whole are barely moving, up just 0.2% from February 2012.

There was only a 4.4% increase in new buyers registering with agents, compared to 18% in February.

The length of time taken to sell a residential property also varies widely across the country, from 11.6 weeks in the Midlands and North to under six weeks in London.

Hometrack’s Director of Research, Richard Donnell, said: “The housing market is not firing on all cylinders nationally. The divergence in the relative strength in northern and southern England is set to remain. We expect prices to track sideways in the short term, with the outlook for the second half of the year hinging on households’ expectations for the economy and their incomes.”

The Hometrack report does not give residential property prices, but said that in London property prices rose 0.5% in March, the highest monthly increase since April 2010.

However, the increase in London property prices were recorded pre-Budget, when Stamp Duty on properties valued at £2 Million (GBP) plus increased from 5% to 7%, for private purchasers, and 15%for properties bought by partnerships, collective investment funds and companies.

The survey results reveal a clear divide in the strength of the UK property market between southern England and the rest of the country.

Hometrack reckon that all the evidence points to a continued firming up in UK property prices over the next few months as demand for residential property increases and the supply of available properties remains subdued.

New property instructions coming to market have seen vendors raise the average asking price by 4.1%

The average property asking price for new instructions put on the market within the last 4 weeks is now £233,252.

The almost £11,000 increase is up from January’s average asking price of £224,060, despite a warning that much of the residential property stock already on the market in some parts of the UK, is “over-priced and unsaleable”.

Rightmove have described the highest monthly increase since April 2002, the biggest rise in UK property asking prices for nearly ten years as “a surprisingly strong uplift given the challenging economic environment”.

But it said that the rise is partly fuelled by cash-rich sectors of the market, where buyer demand is exceeding suitable property supply.

Director Miles Shipside warned property vendors: “There is pricing power if you are selling the right type of property in the right place, where enough potential buyers have access to funding. But if your local market does not have those characteristics and your price-pump is based on little more than seasonal optimism and an estate agent’s hot air, then be prepared for buyer response to be a let-down.”

He added: “In some micro-markets, sellers have the upper hand, but on the whole, a buyer with cash or a mortgage offer is the one in the driving seat.”

After depressed activity in the UK property market over the last four years, some households have decided they had to get on and move. This means that here could be a growing acceptance by the British public that the state of today’s housing market is the new norm.

Mr Shipside said: “Search activity on Rightmove is up by 19% on January 2011 and it could be a sign that some of those who can afford to move have decided to get on with their lives, driven either by desperation or by coming to terms with the constant barrage of negative economic news being the new norm. You can get tired of gloomy news or get used to it, and indeed for some cash-rich buyers, life has moved on to such an extent that it’s like the Lehman Brothers collapse never happened. Stock levels are still on the high side in some less active parts of the country, but much of that stock is perhaps over-priced and unsaleable. However, in some micro-markets, the shortage of existing and new instructions has helped contribute to the largest monthly jump in new selling asking prices for nearly a decade. While the mass-market stays at home, those that have access to funding continue to be active and have spending power, resulting in this month’s big price hike.”

Average weekly listings on Rightmove are currently 30% below 2007 (pre-credit crunch levels), with a weekly run rate of 24,406 new listings.

Rightmove’s current asking price of £233,252 appears to be £70,000 ahead of current actual property selling prices, when compared with the selling prices currently being reported by Halifax and Nationwide of £160,907 and £162,228 respectively.

North East Investment Property 

Investment deal priced to move quickly, Don’t Delay – Call Today quoting Ref: MPPT

property solutions

Property Sourcing Specialists based in The North East

An excellent investment property which has been re-furbsihed throughout to a very high standard.  The property is located in an area which has easy access to all major routes and is within walking distance to local amenities.  The property is offered at 20% BMV and the current owner has a tenant ready to move into the property.  Here is the deal.

Purchase Price          £48,000

Market Value           £60,000

Rent                         £400pcm

Yield                        10%

For further details and photographs click here

Castledene also have a cash purchase property at £27,000 which has been fully re-furbished and would provide a yield of 16 – 20%.  The property is not located in the most popular location however based on the current LHA the minimum yield achieveable would be 16%.

If you are interested in this property or for information on any other deals that Castledene have available please do not hesitate to contact Lisa on 0191 527 4007 quoting referenceMPPT.

Castledene Property Management

Professional Property People

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