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Help-To-Buy Heralded As UK Property Market Saviour

Help-To-Buy Heralded As UK Property Market Saviour

RICS Claim Help-To-Buy Is Reason
For UK Property Market Recovery

The Royal Institute of Chartered Surveyors (RICS) have stated that the Government’s Help-To-Buy scheme and other financial initiatives have seen the UK property market turn the corner after the post recession slump.

In its monthly report RICS said property prices are up for a fourth consecutive month as the largest number of property buyers in 4 years return to the market.

The RICS report particularly picked out the West Midlands and the North East, as two areas which had suffered more than most in the UK property market crash, but these areas experienced the biggest increase in property buyer activity during July.

The widespread pick-up in the UK property market has seen residential property prices rise at their fastest rate since the peak of the property market in November 2006.

There is a growing chorus that the Government’s Help-To-Buy scheme, which was introduced in April to provide equity loans for first time buyers of up to 20% towards the cost of a new build property worth up to £600,000 (GBP) is creating a new property bubble.

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Cracking The Property Code with Matthew Moody

Cracking The Property Code with Matthew Moody

Cracking the Property Code Live is the culmination of 10 years hands on experience and brings one of the UK’s best property investment educators ready to share with a select audience what he knows to be the key to property investment success.

 

Take action to move your property business
onwards and upwards

Spend the day with Matthew Moody learning how to create a property business that is profitable, and sustainable

BOOK YOUR PLACE NOW!

Attendees Will Learn:

  • How to understand if the path you are on is the right path for you
  • How to choose two property strategies that work for you
  • Which systems to use and which ones to ditch
  • Which three marketing strategies you need to use

Learn how to have more time, make more money
and secure the future of your property business

  • How to have more time, and make more money
  • Strategies for ensuring your property lets out for a premium rent
  • Foolproof guides to leveraging your time so you can do more and make more
  • How to make your business work in the recession
  • Busting wide the myths about regulations
  • How to avoid the ticking time bomb of interest rates

 With featured exhibitors:

  • Mir & Co Solicitors
  • HMO Tax
  • The Mortgage Practice

BOOK YOUR PLACE NOW!

 

June 22nd 2013 at The London Ealing Hotel, DoubleTree Hilton

Time: 09.00am – 05:30pm

Cracking the Property Code Live!

Cracking the Property Code Live!

UK Needs To Build Its Way Out Of Recession

UK Needs To Build Its Way Out Of Recession

The UK Government must do more to help stimulate the country’s economic growth, to boost the supply of new residential properties and build its way out of a potential triple-dip recession.

This is the view of the Federation of Master Builders (FMB), as the latest ONS GDP figures released showed output in the sector rose by just 0.3% in the final months of 2012.

The FMB point out that overall the UK economy shrank by 0.3%, keeping the country still struggling to escape the grip of recession, while there was a small increase in construction output.

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Residential property prices across the UK slumped in April, according to the latest Royal Institute of Chartered Surveyors (RICS) housing market survey.

Across the UK, 19% more chartered surveyors reported property valuation falls rather than rises in house prices.

Expectations for future residential property prices also reached their lowest point with a net balance of 17% more respondents predicting further drops.

Demand from potential buyers was relatively flat during April 2012 as 5% more surveyors reported increases rather than decreases in new buyer enquiries (from +10% in March).

Meanwhile new instructions were stable as 1% more respondents reported falls rather than rises in new residential properties coming up for sale. Whilst the trend may appear flat, the level of supply has not seen any significant drops since July 2011.

April’s property transaction levels entered negative territory for the first time since September 2011, as 6% more RICS surveyors across the UK reported decreases rather than increases in transaction levels.

London was the only part of the UK to observe a residential property prices rise, while the West Midlands and Wales saw the most significant declines.

Whilst the RICS predictions for future property prices saw a notable dip, expectations for transaction levels once again remained positive with a net balance of +15% more respondents expecting sales to rise over the coming three months.

Global Director for Residential Property at RICS, Peter Bolton King, says: “With the recent surge in activity brought on by March’s stamp duty holiday coming to an end, it is unsurprising to see that prices across much of the country are continuing to fall. Renewed concerns over the economy and talk of a double dip recession dominating the headlines in recent weeks may well have served to undermine consumer confidence. What’s more, the continuing lack of affordable mortgage finance is still hindering many first time buyers who cannot afford to get a foot on the property ladder.”

Residential property affordability is at its most favourable in almost a decade, according to the latest Lloyds TSB Affordable Cities Review.

My home town of Salford, in the North West, is the most affordable UK city with an average property price of £102,391 that is 3.81 times the average gross annual earnings.

This partly reflects a 32% fall in house prices in this part of Greater Manchester since 2008.

The average price for a home in a UK city is £173,202 equating to 5.5 times the average gross annual earnings.

This is an improvement on 5.7 times the average gross annual earnings in 2011 and is significantly below the peak of 7.2 times the average gross annual earnings observed in 2008.

10 most affordable UK cities, 2012

UK cities

Region

Price to Earnings ratio

Salford

North West

3.81

Londonderry

Northern Ireland

3.87

Bradford

Yorkshire and the Humber

3.98

Lancaster

North West

4.00

Stirling

Scotland

4.04

Belfast

Northern Ireland

4.08

Durham

North

4.08

Lisburn

Northern Ireland

4.09

Hereford

West Midlands

4.26

Birmingham

West Midlands

4.43

UK cities average

 

5.51

Sources: Lloyds Banking Group, ONS

The marked improvement in affordability in UK cities over recent years has been driven by the significant fall in residential property prices.

Since 2008, the average house price within a city has fallen by 18% (£37,403) from £210,605 in 2008 to £173,202 in 2012.

  • 7 out of the 8 most affordable cities are in Northern Ireland and the North of England.
  • Ely in the East of England is the most affordable city in the south of England (4.60).

The least affordable city in the UK is Truro in the South West where the average property price (£250,489) is nearly ten times (9.71) the average gross earnings in the area. The benefits to the quality of life associated with living in this picturesque part of Cornwall have supported residential property prices in this area for the past decade.

Oxford (8.80) is the second least affordable city, followed by Winchester (8.76). Inverness (5.97) and York (5.95) are the least affordable cities outside Southern England.

Suren Thiru, housing economist at Lloyds TSB, commented: “The improvement in housing affordability within many of our major urban conurbations has been significant during the past few years and reflects the decline in house prices over the period. There is, however, a distinct north-south divide to the locations of the most affordable UK cities. Looking forward, the marked improvement in city affordability is likely to help support demand for those able to enter the housing market. Much of this benefit, however, maybe offset by the continuing difficulties many households face in raising a deposit and uncertainty over the outlook for the UK economy.”

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

With the continuation of the record low Bank of England interest rates (0.5%) there has been very little movement in UK property prices for more than 8 months.

However, UK mortgage lender Halifax reckons there was a 0.6% increase in UK property values in January 2012.
The UK’s largest mortgage lender found that despite the month-on-month increase in January, on average UK property prices were still 0.9% lower over a rolling three-month period.

The average price of a UK residential property in January 2012 was £160,907.

This has resulted in a 14-year low, in terms of payments in proportion to household earnings, for new borrowers looking to invest in UK residential properties.

Martin Ellis, housing economist at Halifax, said: “If the UK can avoid a prolonged recession, we expect broad stability in house prices in 2012.”

The prospects for UK property prices in 2012 will depend on many facors, including the fallout and repercussions from the Eurozone debacle and its effect on the struggling UK economy.

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UK property repossessions increase

UK Property Repossessions are forecast to increase 22% in 2012

UK Property Repossessions are forecast to increase 22% in 2012

Economists expect the recession and rising unemployment to squeeze the already stretched household finances of thousands of struggling families this year and are warning UK homeowners and landlords of a sharp rise in residential property repossessions.

Record low Bank of England (BoE) interest rates and lower than expected unemployment figures kept property repossessions to relatively small numbers through the worst days of the first half of the recession and they eased again as the country struggled into a tepid recovery.

However, with a double dip recession inevitably looming, workers incomes failing to cover spiralling household costs, the Government’s economic cutbacks and welfare reforms starting to bite whilst the beleaguered private sector fails to replace jobs lost in the public sector, economists are fearing the worst.

The Council of Mortgage Lenders (CML) had already forecast a 22% rise in UK property repossessions for 2012 increasing the annual property repossession figures to around 45,000.

The property repossession figures include private residential properties where mortgage payments have lapsed and Buy-To-Let properties where landlords did not have <a title=”Landlord Insurance” href=”http://www.legal4landlords.com/rent-guarantee/” target=”_blank”>Rent Guarantee Insurance</a> and have been unable to keep up with their buy-to-let mortgage repayments due to their tenants not paying the rent.

Read the full article here

The latest Bank of England survey of households concludes that the UK’s recovery from the recession of 2009 has been slowed by falling consumption reflecting the challenging environment facing households.

The BoE data suggests most households have experienced an income squeeze over the past year, with many responding by looking for a new job or simply working longer hours.

The survey was conducted on 1,985 households and undertaken 23rd – 29th of September (before the worst period of the Eurozone crisis), using computer assisted personal interviewing.

The BoE survey showed 48% of respondents felt the UK government’s budget cuts have affected household income, 34% said they were not “heavily affected” while 18% hadn’t thought about it.

Some 69% of respondents felt government cuts would impact them in the future.

The biggest impact appears to have been from higher taxes, which 23% of people said they had noticed, while 19% mentioned lower income. 7% said they had lost their job although 19% said they expected to lose their job in the future.

The Bank of England noted in their report that: “Unemployment has remained higher than before the recession, and credit conditions are still tight.”

The BoE says its response has been to maintain interest rates at their record low of 0.5% since March 2009 and, as a further stimulus, it has purchased £275 Billion (GBP) in government debt in the process known as Quantative Easing, (QE).

The Chancellor of the Exchequer, George Osborne, believes the UK economy will grow 0.9% by the end of this year, (2011) and just 0.7% in 2012

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Bank of England Look to the Private Rented Sector

David Miles, A member of the Bank of England’s MPC has suggested that the housing market will never go back to what it was and the private rental sector is key to Britain’s changed housing market.

Home ownership is beginning to take the back seat as more and more people choose to rent property. This is in part blamed on high deposits required for property purchases due to UK banks limiting their risk elements, refusing to offer larger mortgages and introducing much stricter lending criteria.

David Miles is of the opinion that the UK’s economy might stablise if Britons were less dependent on changes in house prices and mortgage rates.

Mr Miles said “The credit crunch has created a new world where there will be a lower rate of owner occupation and a bigger rental sector.  I don’t think we should regret the fundamental change in the housing market caused by the credit crisis, and renting property could be of benefit to the overall UK economy.

Mr Miles had previously led an official inquiry into the UK mortgage market, and he also cautioned against a return to banks offering mortgages to borrowers with small deposits, saying “Housing markets and mortgage markets have been close to the centre of the economic and financial turmoil we have lived through over the past four years. I do not believe that the housing market or the mortgage market will get back to where we were in the years leading up to the crisis. I also do not think we should regret that.”

David Miles also highlighted the benefits to the economy of renting property, rather than buying homes and reckoned that tenants in rented property could move more easily for new jobs, thus lowering the risks of structural unemployment. “It will take time for first-time buyers to accumulate larger deposits, so they will typically buy later and the share of home ownership will be lower. But in the longer run, it is not at all clear that a lower rate of home ownership represents a big loss to society.”

There Will Never Be A Better Time To Invest In Property

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