A more stable and "positive" year in the UK housing and mortgage markets can be expected in 2013, a lenders' group has said.

The Council of Mortgage Lenders (CML) said a steady increase in lending for house purchases signalled more activity.

However, first-time buyers still required a deposit on average of 20% to get on the property ladder.

This group accounted for four in 10 of all house purchase loans in October.
Deposit issues
In total, there were 49,500 home loans advanced for house purchases in October, the CML figures show.

This was an increase of 13.8% compared with September, which was a slow month in the UK housing market. It was a 10.2% rise compared with October 2011.

"If the incremental improvements in house purchase lending that we are currently seeing persist as we expect them to, then next year should feel a more stable and positive year in the housing and mortgage markets," said CML director general Paul Smee.

There was a 19% annual rise in loans for house purchases to first-time buyers in October, the figures show. However, the need for a 20% deposit was a source of concern for some commentators.

"The huge number of aspiring homeowners will never be able to find this kind of deposit," said Neil Ryner, director of the property finance group, Ryner and Partners.

"What we are currently seeing are the transactions of the privileged few."

The CML recently suggested that only 34% of all first-time buyers bought their first home without the financial help of their parents or other relatives at present. That proportion dropped to 28% in London.

However, Aaron Strutt, of mortgage broker Trinity Financial, said: "Building societies have been looking to increase their lending figures this year and they regularly offer cheaper mortgages than the biggest banks.

"Over the last few weeks, they have improved their first-time buyer rates in particular and this has helped to increase competition between the lenders."
Drop in ownership
Difficulties in securing a mortgage remain part of the reason that home ownership has dropped in England and Wales.

Results of the 2011 census, published on Wednesday, underlined the falling levels of ownership.

Some 64% of households - 14.9 million people - owned their own home in 2011, either with a mortgage or loan, or outright. This was a drop of four percentage points since 2001.

More people owned their home outright, an increase of two percentage points to 31%, or 7.2 million households. The number of households that rented from a private landlord or letting agency increased by six percentage points to 15%, or 3.6 million households, in 2011.

Boris Johnson has condemned proposals for a tax raid on owners of expensive homes, insisting the focus should be on ensuring firms like Google pay their way.

The Mayor of London, in a speech to the CBI , warned that high rates of personal taxation will make Britain less competitive.

Mr Johnson hailed the economic success of the capital but stressed that it could not be taken for granted.

"In the 19th century London became the biggest and richest city on earth because of its openness to trade and to talent," he said.

"I am worried that we are losing some of that openness at a critical time."

Mr Johnson called for a new "Age of Enterprise", saying it requires the Government to be "responsive to what is happening in the rest of the world".

"I am afraid that high rates of personal taxation are likely to make us less competitive," he said.

"We should have taxes that are low but fair and it is absurd to be suddenly whacking up taxes on cash poor people who happen to inhabit expensive houses in London when firms like Google are paying zero.

"Neither arrangement strikes me as being fair and so Google and co face a very clear choice - they can either change their tax arrangements or do much more to serve our society by visibly taking on 18 to 24-year-olds who are out of work."

His intervention came after Business Secretary Vince Cable indicated some kind of levy on property is being considered for inclusion in next month's Autumn Statement.

The Lib Dems have been pushing for a new wealth tax and there have been reports council tax bands could be hiked for properties worth £1m.

This is despite both David Cameron and George Osborne insisting the Government would not introduce a so-called "mansion tax".

The Chancellor is negotiating on the contents of his key statement on December 5, which is set to include a fresh round of welfare cuts.

Mr Cable said on Sunday: "These areas are under discussion and the devil will be in the detail but it is right that we do tax wealth and property is the obvious place to go.

"One reason that it is fairer is that it cannot run off to Monaco and Liechtenstein. When trying to deal with abuse of the tax system, it is the best way of doing it."

In his CBI speech, Mr Johnson also urged politicians to be positive about the country's prospects and stop using the "rhetoric of austerity"

"If you endlessly tell business to tighten their belts and eat nut cutlets and drink their own urine then you will be putting a big downer on growth and enterprise," he declared.

"Give British firms the right platform for enterprise and there are no limits to what they can achieve."

He insisted it was time to stop "vilifying bankers" but said leading bankers must now show "moral leadership" to help Britain's recovery.

London home sellers increased asking prices for a third month in November as the city’s wealthiest areas continued to lure overseas buyers, Rightmove Plc (RMV) said.

Prices in the U.K. capital increased 1.2 percent to an average 483,709 pounds ($769,600), the operator of Britain’s biggest property website said in a report today. Properties in the city’s nine most expensive districts -- where average prices exceed 600,000 pounds -- surged 3.4 percent. Nationally, values fell 2.6 percent.

“The prime central London property market continues to attract wealthy foreign buyers,” said Miles Shipside, commercial director of Rightmove. “This is especially true in the international property hot spots of the City of Westminster, where a Mayfair or Belgravia address is a prerequisite for the world’s wealthiest. The best of London is increasingly in ‘international only’ reach.”

London’s most expensive districts are attracting buyers looking for safer investments, and luxury-home values are now 16 percent higher than their previous peak in March 2008, according to property consultant firm Knight Frank LLP. International buyers accounted for 41 percent of London houses bought for at least 1 million pounds in September.

London continues to buck the trend nationally, according to Rightmove’s data. The decline in asking prices in England and Wales this month was the biggest in almost a year and left the average at 236,761 pounds. From a year earlier, national prices were up 2 percent versus an 8.8 percent gain in London.
‘Two-Speed Market’
“There’s a two-speed market” and it “remains patchy,” Shipside said. Still, he added that there are signs of stability, noting a 20 percent year-on-year increase in search activity on the Rightmove website and a 9.2 percent rise in mortgage approvals over the last quarter.

This “may indicate a sounder springboard for 2013 as the wait goes on for a sustainable recovery in transaction numbers,” he said.

The property market may be supported next year by the Bank of England’s Funding for Lending program, aimed at boosting credit availability. Still, with jobless claims rising and signs emerging that the economy may contract this quarter, consumer confidence remains subdued. Governor Mervyn King offered a downbeat assessment of the economy last week, saying the outlook remains “challenging.”

“The housing market seems to be set to improve a touch in 2013 as the effects of the BOE’s Funding for Lending program will start to filter into the economy,” Annalisa Piazza, an analyst at Newedge Group in London, said in an e-mailed note. “However, we rule out a sharp acceleration in activity and prices as housing-market conditions are still very far from the boom seen before the last deep recession.”
OECD Report
Elsewhere, the Organization for Economic Cooperation and Development said Southeast Asia is emerging resilient from a period of global turmoil, with rising investment and domestic consumption that will propel growth in coming years.

Indonesia’s growth will average 6.4 percent from 2013 to 2017, the OECD estimated in a report yesterday, equal to that recorded in the two decades before the 1997 Asian financial crisis. The Philippines will expand about 5.5 percent a year, up from 5 percent in the decade through 2012. Malaysia and Thailand will see gains of about 5.1 percent, the OECD said.

Europe’s debt crisis and a slowdown in advanced economies have had a “limited” impact on Southeast Asian nations. with most of the effect experienced through trade, the Paris-based OECD said in the report.

Euro-area finance ministers will meet in Brussels tomorrow aiming to stitch together Greece’s next aid payment as a sputtering euro-area economy and a spat with the International Monetary Fund cloud efforts to resolve the crisis.

In the U.S., the lowest mortgage rates on record probably helped keep sales of previously owned homes close to a two-year high in October. Purchases of existing dwellings probably held at a 4.75 million annual rate, according to the median forecast in a Bloomberg survey before today’s report from the National Association of Realtors.

-- Editors: Fergal O’Brien, Craig Stirling

Home sales in England and Wales rose 2.2% in the first half of this year to 282,086 with Felixstowe, the Suffolk port town emerging as the most preferred property areas and Salford, gaining the least preferred status, according to the Lloyds TSB report. With the house sales on an upswing, London property developer Telford Homes saw a significant rise in first half profit, as demand for London property remains strong.

Yorkshire and the Humber area had the highest proportion of hotspots with almost 80% of all towns surveyed in the region recording an increase in sales. The south west was in second place with 77% followed by the south east with 71%. The lowest proportion was in the north of England were only 28% of towns recorded a rise in sales.

Suren Thiru, Lloyds TSB housing economist, said the encouraging increase in the number of towns showing a rise in home sales highlighted the mixed state of the housing market at local level compared with the subdued picture at national level.

Meanwhile, Telford Homes, the east London house builder, reported that it has completed 85% sales of the open market homes expected to legally complete in the year to March 31, 2013 and over 50% sold for the year to March 31, 2014.

Thiru said, “Many of the top performing towns are in areas where improved levels of affordability over recent years have helped support demand for those able to enter the housing market.”

The increase in house sales has been boosted by improvements in affordability, with house prices in the 10 biggest property sales hotspots falling by 7% over the past four years. Around 324, or 65%, of the 500 towns tracked saw an increase in home sales in the first half of this year compared with the first six months of 2011. This is more than double the 151 towns which saw an increase in sales in the first half of 2011.

A new court ruling could have huge implications for property transactions conducted via estate agents.

An estate agency in Wales has been fined thousands of pounds for failing to disclose information which would have put a potential purchaser off buying a property.

BeresfordAdamsEstateAgents failed to inform the potential buyer about the existence of a mineshaft underneath the property, despite being aware of the fact that other potential buyers had previously withdrawn from purchasing the property due its presence.

As well as a £3,500 fine, the firm was ordered to pay £5,000 in court costs and £515 to compensate the potential buyer, bringing the total penalty to more than £9,000.

What does this mean for you?

The case, which was brought to court byWrexhamTradingStandards under the Consumer Protection from Unfair Trading Regulations Act 2008, could have wide-reaching implications for property buyers and estate agents in this country.

It sets a precedent and means that if an estate agent is aware of significant information which could influence your decision about whether or not to purchase the property, and the agent fails to disclose this information to you, then you could potentially take legal action against the firm.
Your rights and what has changed
As regular lovemoney.com readers will know, despite the huge amounts of money involved in a property purchase, the sector isn’t heavily regulated and any cowboy can set himself up and call himself an estate agent.

You can complain about an estate agents’ behaviour to the Property Ombudsman, but only if the estate agent has signed up to the TPOCodeofPracticeforResidentialSales. Since 2008, all estate agents have been required to sign up to some form of redress scheme, however, and in 2010 the Office of Fair Trading decided that further regulation was unnecessary.

Yet these Estate Agency redress schemes are designed merely to protect the client of the estate agent – i.e. the seller of the property. There is little to protect any potential buyer, as the estate agent is expected to work in the interests of the seller alone.

[SPOTLIGHT]When it comes to marketing, the TPO Code of Practice, for example, states only that: “The estate agent must describe the property as accurately as possible and not misrepresent the details.”

In the case of the mineshaft property, then, the potential purchaser might have found it difficult to seek redress under the TPO scheme. The estate agent didn’t misrepresent the details of the property – but it did make a misleading omission, and that is where the 2008 Consumer Protection from Unfair Trading Regulations Act comes in.
Why this case was successful
One of the key reasons this Act was brought into force was to protect consumers from misleading omissions by traders. This Act made it illegal for any trader - including an estate agent - to deliberately withhold important information that you need in order to make an informed decision about your purchase.

As a test case for other property buyers seeking justice under the Act, this particular example of a misleading omission was very clear cut.

There can be no doubt that the information about the mine shaft was significant and would have a major impact on any potential buyer’s decision about whether or not to go ahead with the purchase. This is because the presence of a mine shaft underneath a property typically means it would be more likely to suffer from problems like subsidence, transmission of gas into the property, water emissions and even carbon monoxide poisoning due to the spontaneous combustion of coal!

As a result, mortgage lenders are very reluctant to lend on the property and it is difficult to sell.

The other key aspect about this case was the fact that previous potential buyers had withdrawn from purchasing the property when they discovered the mineshaft.

This made it much easier to prove that the estate agents must have been aware of the presence of the mineshaft for some time. Yet the firm allowed a new potential buyer to go ahead and incur the costs of searches and a survey, without revealing this information.
How you can use this case
If you ever find yourself in a similar situation - where the survey reveals a significant problem that would obviously affect your decision to purchase a property - try to find out whether the estate agent knew about it before you incurred any costs.

They may not admit it, but if there is good reason to suspect the agent deliberately omitted to tell you all the facts (for example, if previous offers from other buyers were repeatedly withdrawn after the survey stage), then you should seek compensation. ContactyourlocalTradingStandardsofficer and ask them to look into it.
My view
I very much doubt Beresford Adams is the only estate agent to behave in this way. In fact, I imagine that in some estate agents around the UK, this sharp practice goes on, perhaps indefinitely, until a buyer neglects to get a survey done and unknowingly agrees to buy a nightmare property.

If nothing else, this case should act as a warning to buyers to be on their guard. Whether it will actually force estate agents to deliberately misleading us to be seen. It is, after all, usually going to be difficult to prove an estate agent knew about a problem beforehand.

Modern movers rely on the internet so much for work and leisure that a good connection speed can even add 5 per cent to a property’s value

Homebuyers now rank a fast broadband connection above off-street parking and local amenities when considering a new property, a study reveals.

Modern movers rely on the internet so much for work and leisure that a good connection speed can even add 5 per cent to a property’s value.

That adds a staggering 15,000 pounds to the value of a typical 300,000 pounds house.

Indeed 19 per cent ensure broadband is the first new service they activate when moving in - placing it ahead of gas, 10 per cent, and TV, 8 per cent.

Electricity is the only utility to be given a higher priority, with 21 per cent seeking a supplier first, the study by broadbandchoices.co.uk found.

And estate agents have revealed house adverts showing broadband connection speeds secure double the number of viewings.

One in five homebuyers have checked broadband speeds when evaluating a house before they have even walked around the area.

And one in ten have rejected a potential new home because it had a poor connection, the study of 2,000 homebuyers found.

Knowing a property has good broadband speeds is routinely ranked as more important than off-street parking, access to shops and a nearby pub.

The local road network, public transport and mobile phone signal strength also ranked lower.

Furthermore, 54 per cent considered broadband speed before moving in but just 37 per cent looked at the crime rate.

The government recently announced a 114 million pounds investment in key cities to ensure Britain has the fastest broadband in Europe by 2015.

But speeds currently vary hugely across the country, with the difference having an impact on the property market.

Miles Shipside, from Rightmove, said: “In this digital age, a fast broadband connection is becoming much more important for home-hunters.

“People don’t just rely on a good internet connection for web browsing, but also streaming television and working from home.

“As the consumer technologies which rely on the internet expand, the need for a strong connection will be added to more home mover wish-lists.”

Independent estate agents Delaney’s, from Braintree, Essex, found adverts displaying broadband speeds secured double the number of viewings in trials.

And online adverts which included the speed alongside house price and number of rooms attracted 40 per cent more page views than those without.

Rob Delaney, from Delaney’s, said: “As with good schools and south-facing gardens, people are now on the hunt for homes with fast broadband.

“It is a sign of the times. But we were still really surprised with the results of our trial.

“We’re now displaying broadband speeds on all our property details because it’s clearly what customers are looking for.”

As well as making a property more appealing, the study also revealed broadband could add to the value of a house.

One in five prospective buyers, 18 per cent, said they would be happy to pay more for a property with a good connection.

A third claimed they would pay between two and five per cent extra.

Dominic Baliszewski, from broadbandchoices.co.uk, said: “When it comes to buying a home it seems it’s more a case of broadband, broadband, broadband than location, location, location.

“Broadband has become something people are not prepared to live without, so it’s little wonder it’s now such a major factor for homebuyers.

“It’s much like a central heating system or running water.

“It is very easy to check broadband speeds in a specific area so we’d urge potential home buyers to do this rather than be left disappointed.”

First-time buyers Charlotte Frost, 24, and Matthew Anderson, 26, dismissed one of their favourite shortlisted properties due to its slow connection.

Charlotte, from West Byfleet, Surrey, said: “We had looked at numerous houses within Surrey and had fallen in love with a small cottage in Cobham.

“We thought it was ‘the one’ and were about to sign on the dotted line when my boyfriend asked about the internet connection at the house.

“The estate agent admitted he didn’t know, so we spoke to both the seller and did independent speed tests online for the postcode and found it was very poor.

“It was a real shame because it was otherwise perfect.

“But it was a massive factor for us given that Matthew often works from home.”

The OFT has today published guidance to help estate agents and others involved in property sales understand their responsibilities under consumer and business protection regulation

It is aimed at all property sales businesses, from estate agents and property developers to intermediate websites that facilitate contact between buyers and sellers.

The guidance identifies examples of trading practices that could breach the regulations and includes practical steps that property sales businesses can take to comply with the law, for example:

Ensuring that any information provided, whether in writing, in pictures or given verbally, is accurate when advertising for new business or when marketing property. Breaches of the regulations might include falsely claiming to be a member of a professional body, misdescribing a property for sale or making unfair comparisons with competitors.

Not leaving out important information that consumers need to make informed decisions. For example, throughout the buying and selling process, businesses must provide the necessary information to enable informed choices to be made on viewing a property, making an offer or instructing conveyancers or surveyors.

Not putting undue pressure on consumers to act quickly, for example to put in an offer, raise their price, skip the survey or exchange contracts.

Having an effective customer complaints procedure that is understood and followed by all staff who come into contact with the public.

The guidance specifically covers two pieces of existing legislation: Consumer Protection from Unfair Trading Regulations 2008 (CPRs) and the Business Protection from Misleading Marketing Regulations 2008 (BPRs).

Non-compliance with the CPRs and BPRs may lead to enforcement action under the Enterprise Act 2002. This could see a trader give undertakings, or be subject to civil court proceedings, to stop breaching the regulations. It may also lead to criminal enforcement action, an unlimited fine and up to two years' imprisonment for a conviction in the Crown Court (or Sheriff Court in Scotland).

The guidance will assist traders and others (including enforcers and consumer advisers), especially in light of the Department for Business Innovation and Skill's announcement today that  the government intends to repeal the Property Misdescriptions Act 1991, which has largely been superseded by the CPRs and BPRs.

Cavendish Elithorn, Senior Director of the OFT's Goods and Consumer Group, said:

'Buying and selling a property is usually one of the biggest purchases we make and can also be one of the most stressful. Unfair business practices can cause substantial losses or frustration to buyers and sellers either when transactions collapse or afterwards when the truth is uncovered.

'In response to feedback, this guidance has been developed with help from the property sales industry and Trading Standards Services, to provide clear and comprehensive, but practical, advice.'

Valuations activity remained high during the 2012 Games

Activity in the UK housing market held up reasonably well during August despite the public concentration on the Olympics, according to the latest figures from the RICS.

The amount of potential buyers looking to view property saw a slight dip while the number of new instructions was effectively unchanged on the July figure.

"Little changed in the housing market last month," said Ian Perry, RICS spokesperson. "Despite the Olympics taking centre stage throughout much of August, it didn’t have any real impact on the proportion of sales going through. Understandably, the amount of people out looking at property fell away slightly but, generally speaking, demand held up fairly well."

Indeed, according to the latest Housing Market Activity Report by Connells, the valuations market experienced a seasonal dip in August The total number of residential valuations conducted by Connells during the month fell by 10 per cent compared to July. However, despite the drop, activity remained higher than a year ago, with 1 per cent more valuations than in August 2011.

“The housing market is traditionally slower in August," said John Bagshaw, Corporate Services Director of Connells, "and this year proved no exception as the summer holiday season took its toll on the number of buyers looking to move. This seasonal drop-off was exaggerated by the Olympic focus, on top of the ongoing squeeze on lending, although this was not as great as many had expected.

“However, it is encouraging that despite the monthly dip, valuations activity remained higher than a year ago, and is already showing signs of bouncing back in September despite the difficult borrowing conditions.”

The average cost of a home rose 1.3 percent from July, the biggest monthly increase since January 2010, the Swindon, England-based customer-owned lender said in an e-mailed report today. The average price in August was 164,729 pounds ($260,400), down 0.7 percent from a year earlier.
Enlarge image
The average cost of a home rose 1.3 percent from July, the biggest monthly increase since January 2010, Nationwide Building Society said in a report today. Photographer: Chris Ratcliffe/Bloomberg

“Given the difficult economic backdrop, the extent of the rebound in August is a little surprising,” Nationwide Chief Economist Robert Gardner said. Still, “conditions remain fairly stable. This may be explained by the surprising resilience evident in the U.K. labor market, with further increases in employment in recent months.”

The Bank of England and the government are trying to stimulate the economy by boosting credit through their Funding for Lending Scheme. While the recession deepened in the second quarter, data this month showed jobless claims unexpectedly fell in July and a wider measure of unemployment dropped to its lowest in a year.

The pound was little changed against the dollar and was trading at $1.5787 as of 8:10 a.m. inLondon. U.K. government bonds were also little changed, leaving the yield on the 10-year gilt at 1.45 percent.
Stable Outlook
Policies to support the availability of credit and lower the cost of borrowing “should help to provide support” to the property market, Gardner said. “House prices are expected to remain fairly stable over the next two years.”

In the three months through August, house prices fell 0.5 percent compared with the previous three months, according to the Nationwide report.

A report by Hometrack Ltd. this week showed house prices fell 0.1 percent in August, declining for a second month. The Bank of England said yesterday that lenders granted 47,312 loans to buy homes, compared with 44,124 in June. The total remains below the average for the previous six months of 50,729.

The Bank of England cut its growth forecasts earlier this month and said the outlook is “unusually uncertain.” Recent indicators suggest the economy is still struggling to recover amid the euro-area turmoil and weak domestic confidence, with gauges of both manufacturing and services falling in July.

Forecasts Cut
Separately, the British Chambers of Commerce cut its U.K. economic forecasts and now predicts the economy will contract this year for the first time since 2009. Gross domestic product will fall 0.4 percent in 2012 and expand 1.2 percent in 2013, the BCC said. It previously estimated growth of 0.1 percent and 1.9 percent respectively.

An index of British consumer sentiment compiled by GfK NOP Ltd. stayed at minus 29 in August, data today shows. The gauge has been in a range of minus 29 to minus 31 for the past eight months. A measure of Britons’ economic outlook for the next year rose 3 points to minus 27 and a measure of the climate for making major purchases dropped 5 points to minus 31.

Yesterday, the Confederation of British Industry slashed its forecasts and said “downside risks” remain.

To contact the reporter on this story: Svenja O’Donnell in London at sodonnell@bloomberg.net

To contact the editors responsible for this story: Craig Stirling at cstirling1@bloomberg.net;

The Halifax says new homeowners need just over a quarter of take-home pay to cover loans, the lowest proportion of their disposable earnings since 1997.

Halifax attributed the drop to record low interest rates and weak house prices in most parts of the UK.

But it comes after recent data revealed mortgage approvals at a 15-year low.

Halifax said the "key factor" of continuing low interest rates, which currently stand at 0.5%, would help keep house prices steady for the rest of 2012.

Overall, it said mortgage payments as a proportion of income had dropped by nearly a half since the market's peak of 48% in autumn 2007.

It said affordability had improved in every UK nation or region since 2007, particularly Northern Ireland.

The independent housing expert, Henry Pryor, pointed out that the figures assumed people were paying a deposit of 30% - the long-term average taking into account remortgaging - something well out of reach to many first-time buyers.

He told the BBC: "Out in the real world, the biggest drag on the buying and selling process is that people are having to scrape together a year's worth of after-tax pay for an acceptable deposit."
Tougher marketContinue reading the main story“Start Quote
Mortgage payments for a typical new borrower currently account for the lowest proportion of earnings for 15 years”
Martin Ellis Halifax housing economist
The Halifax's findings suggest the biggest drop in typical mortgage payments as a proportion of earnings has been in Northern Ireland - where they have fallen by about two-thirds.

Scotland, Wales and Yorkshire and the Humber have also seen payments nearly halve in five years.

And in London, where steady overseas buyer demand has kept house prices relatively strong, new borrowers are seeing potential payments drop to about 35% of their disposable earnings - down from 56% five years ago.

Scotland now boasts the 10 most affordable areas, with potential mortgage payments at around 15% of disposable earnings in East Ayrshire.

Some of the least affordable areas are found in London and South East - with payments in Chelsea and Kensington hitting around 76.6% of disposable earnings.

The news of improving affordability for new borrowers comes at a time when those trying to get a mortgage for the first time are finding it tougher, as lenders tighten their criteria due to the weak economy.

Recent findings from the British Bankers' Association revealed a fall in mortgage approvals to a 15-year low in June.

And several of the UK's biggest lenders, including the Halifax, have recently raised their standard variable rates (SVR), affecting more than a million home owners.

Lenders have blamed the move on the rising cost of funding mortgages.

Borrowers usually switch to an SVR default rate once their initial fix or tracker deal period finishes.
'Low levels'
The range of mortgages available to people with deposits of 10% or less and first-time buyers has also slumped significantly in the last six months, according to the comparison website, MoneySupermarket.

Experts say those to benefit from recent increased competition among lenders has mainly been borrowers with the big deposits.

And many of those taking their second step on the property ladder are struggling under the harshest market conditions in decades, as borrowers become stuck in negative equity after buying their first property at the peak of the market - according to a Lloyds TSB report published last week.

Halifax housing economist Martin Ellis said: "Lower house prices and reduced mortgage rates have led to a significant improvement in housing affordability for those able to fund the necessary deposit to enter the market over the past five years.

"As a result, mortgage payments for a typical new borrower currently account for the lowest proportion of earnings for 15 years.

"The relatively low level of mortgage payments in relation to income is providing support for house prices.

"The prospect of interest rates remaining at low levels for some time yet is expected to continue to be a key factor supporting the demand for homes, helping to keep house prices around their current level during the remainder of 2012."

The study used figures from the Office for National Statistics, the Bank of England and Halifax's own database.

In all cases, it applied the national average mortgage loan-to-value (LTV) of 70% to average house prices to work out the average new mortgage.

That average was measured over the last 30 years.

There has been a continued fall in payments relative to earnings over the past year from 23% in 2011 Quarter 2, taking this measure further below the long-term average of 30%1. Overall, mortgage payments have nearly halved as a proportion of income over the past five years from a peak of 38% in 2007 Quarter 4.

Scotland is the most affordable in the UK
Mortgage payments account for the lowest proportion of disposable earnings in Scotland (20%). This compares with the UK average of 26%.

The ten most affordable local authority districts in the UK are all in Scotland
East Ayrshire is the most affordable local authority district in the UK with typical mortgage payments accounting for 15.0% of average local earnings. East Ayrshire is followed by West Dunbartonshire (16.1%) and North Ayrshire (16.2%).

Aberdeenshire is the least affordable local authority district in Scotland
Average mortgage payments on a new loan accounted for 25.7% of average local earnings in Aberdeenshire. Perth & Kinross (25.2%), Edinburgh (25.1%) and Highland (24.0%) are the next least affordable LADs.

Nitesh Patel, housing economist at Bank of Scotland, commented:
„Mortgage payments in Scotland account for a lower proportion of disposable earnings than anywhere else in the UK. In addition, all ten of the most affordable local authority districts are in Scotland, with East Ayrshire the most affordable.

“Lower house prices and reduced mortgage rates have led to a significant improvement in housing affordability for those able to fund the necessary deposit to enter the market over the past five years. As a result, mortgage payments for a typical new borrower currently account for the lowest proportion of earnings for 10 years.

„The relatively low level of mortgage payments in relation to income is providing support for Scottish house prices. The prospect of interest rates remaining at low levels for sometime yet is expected to continue to be a key factor supporting the demand for homes, helping to keep house prices around their current level during the remainder of 2012.“

Table here > http://www.property-magazine.eu/scotland-has-the-uk-s-most-affordable-housing-22160.html

In the past year, the franchising sector created 73,000 jobs, according to the 28th annual British Franchise Association/Natwest survey. This is a result of the number of franchise units increasing by 4% to a total of 40,100, and of growing franchise businesses taking on more part-time staff.

The number of franchise systems also increased this year. Although 35 systems stopped franchising in the past year, 64 businesses went into franchising, a net increase of 29 franchise systems, bringing the total to 929.

The survey found that the relative contribution of the franchise industry to the UK economy grew over the past year, reaching £13.4 billion, an increase of 8%. In the current economic climate, with the UK having returned to recession, this growth is impressive.

The increase is a result both of an increase in the number of franchise systems and franchise units, as well as the average turnover for individual franchise units rising. On average, turnover per franchise unit rose by 4% from last year.

The survey also noted a decrease in the number of unprofitable franchises –last year, for the first time since 2007, the proportion of loss-making franchises was below 1 in 10. The survey also reported that 90% of franchisees said that they had satisfactory relationships with their franchisor, the greatest proportion in a decade.

The survey also revealed that the average age of a franchisee is increasing. This year, the average age of a franchisee is 49, compared to 46 in 2005. The age group with the highest proportion of franchisees is 41-50, with the second highest proportion being found among 31-40 year olds.

This may reflect experienced workers moving into franchising as a way to be their own boss and have more flexibility as they mature. Often, the opportunity to start a franchise arises when older workers are laid off, with redundancy payments helping to pay for franchise fees.

The franchising model offers the benefits of appearing to be a larger business, standardised products and quality expectation - advantages all heightened in a downturn.

Graeme Jones, head of franchising at NatWest and RBS, said: “The franchising model offers the benefits of appearing to be a larger business, standardised products and quality expectation – advantages all heightened in a downturn. Expectations for growth are high in the sector.”

Brian Smart, director general of the bfa, said: “The last few years have put crippling pressure on businesses, creating some of the toughest trading conditions that many have ever seen.

“However, yet again we see the franchise sector proving its value by generating new sustainable business start-ups, jobs and revenue for an economy that desperately needs them. For those who are considering franchising this is obviously an encouraging sign, but we also stress the importance of thorough research and consideration before making any commitments.”

The full 2012 NatWest bfa Franchise Survey is available from the bfa bookshop.

By Jade Dickinson

This is according to research by Lloyds TSB, which found the typical cost of a house in this area in March 2012 was £273,157 - a 33 per cent increase from the average of £206,145 in July 2005.

It is also much higher than the 24 per cent hike seen in UK property in this seven-year period.

Suren Thiru, housing economist at Lloyds TSB, stated: "House prices in the East London postal districts closest to the main Olympic site have performed relatively well since London was awarded the Olympics in 2005."

He added this is due to the hike in interest from buyers and investors as a result of the sporting spectacle taking place in London.

But, Mr Thiru observed the dramatic transformation carried out in the area will represent the "real Olympic legacy".

22 July 2012, 23:30

The Valuation Office Agency has been forced to re-band homes into lower council tax categories, confirming what most residents who live near the giant turbines already know: they are detrimental to property prices.

The move will make it harder for the wind farm industry to dismiss public concerns over the impact of their turbines.

Financial impact: Wind farms, such as this one near the village of Bothel in Cumbria, Lake District, have been found to impact the price of nearby homes

At least five homeowners have seen their properties officially downgraded by the VOA because of their proximity to windfarms.

But only cases that go to appeal are made public by the agency, suggesting many more applications have been received for council tax discounts.
More...

• The view? Gone with the wind: Our famous scenery and landmarks blighted forever by turbines
• Now the ladies of the Women's Institute join farmers in the great milk war against supermarkets

In one case, a couple saw the value of their home near the Fullabrook wind farm site near Braunton, Devon, fall from £400,000 to £300,000 when they asked estate agents to value it.

The home is 650 yards from three of the turbines and the couple feared that the noise and visual dominance of the turbines would not only de-value their home, but make it impossible to sell.

The VOA agreed to put the home from council tax F to band E, saving the couple £400 a year in council tax.

The Valuation Office Agency has been forced to re-band homes near wind farms into lower categories

Many residents in towns such as Llanllwni, in West Wales, have campaigned against wind farms being built near their homes

Families living in the seaside Suffolk village of Kessingland have also applied to be put into a lower council tax band as many of their homes are near 400ft turbines.

When one resident, Sue Price, put her home up for sale last year for £460,000, she found a buyer. But they pulled out when local papers reported that the wind farms were about to be erected and estate agents told her to drop her price, she told the Sunday Times.

‘We went down to £360,000 and still could not sell so now we have taken it off the market,’ she said.

Waveney Council which covers the area has admitted that the constant swooshing noise does constitute a ‘statutory nuisance’, and is working on a technical solution with the wind farm operators, Triodos Renewables.

Recent council-tax rebandings by the Valulation Office are the first admission by an arms-length government body that house prices can be dented by wind farms.

This is despite other studies pointing to their detrimental effects, including the Royal Institute of Chartered Surveyors who pointed out in a 2007 report that homes within one mile of wind farms would lose value.

One in five prospective buyers rate peace and quiet as their number one priority when looking at a house, according to an Alliance and Leicester survey.

Val Weedon, the honorary president of the UK Noise Association, said wind farms would have an impact on people’s quality of life and therefore house prices.

She said: ‘These re-valuations will set a precedent which the wind farm industry does not want. Wind farm noise is like road and airport noise, it has an impact on property prices.’

‘Noise is also associated with headaches and nausea as it is a form of stress, so it can also have a detrimental effect on your health.’

It was revealed last week that every home in Britain will pay £88 to build a vast network of pylons in a £22billion project to link wind farms to the national grid.

Bills will start to rise next year under the controversial plans revealed by industry regulator Ofgem.

An average of £11 will be added annually for eight years, making £88 in total on top of any other increases.

The industry was recently dealt a blow by Chancellor George Osborne, who demanded huge cuts in government aid for wind farms.

The Chancellor told the Treasury to draw up plans for a reduction of 25 per cent in subsidies for onshore wind farms.

A VOA spokesman said: ‘The Valuation Office Agency (VOA) is responsible for keeping council tax bands up to date in England and Wales. We do not record the number of occasions where a band challenge is made by a taxpayer due to the proximity of a wind turbine/farm.

‘If a taxpayer believes that the value of their home has been reduced by a substantial physical change to their locality, then they may be entitled to make a proposal to alter their band.

'The proposal will be considered by the VOA, which may or may not result in a band change. If the taxpayer disagrees with the decision of the VOA, there is a right of appeal to an independent Valuation Tribunal.’

Read more: http://www.dailymail.co.uk/news/article-2177429/Wind-farms-DO-hit-house-prices-Government-agency-finally-admits-thousands-wiped-value-homes.html#ixzz25DgwVAH2

Prices increased by 1% month-on-month in June and dropped by 0.5% year-on-year, but the annual change is a much less sharp drop than the falls seen a year ago, Halifax said.

Its latest study takes average house prices to £162,417, and Halifax suggested that some recent improvements in the employment market and low levels of mortgage payments by historic standards may have helped to keep prices up.

Halifax housing economist Martin Ellis said: "There has been a marked improvement in the annual rate of change over the past 12 months.

"A year ago, in May 2011, house prices were falling at an annual rate of 4.2%. In contrast, there has been broad stability recently with the annual rate between 0% and minus 0.5% in each of the past three months."

He added: "We expect little change in prices and sales over the remainder of the year provided that the UK's economic outlook does not deteriorate significantly."

The study said that prices have continued to fluctuate on a monthly basis, with an even number of falls and rises in the past 12 months. Lenders, including Halifax, have raised their mortgage rates for both new and existing borrowers in recent months, blaming the weak economy and the increased cost of funding a mortgage.

The Bank of England has also said it expects lenders generally to tighten their borrowing criteria in the coming months, making it tougher for people to get a mortgage, particularly those with lower deposits.

But Halifax's study said that mortgage payments for a new borrower remain "significantly" below the long-term average as a proportion of disposable earnings.

It said that mortgage payments for a new borrower, including first-time buyers and home movers, stood at around 26% of disposable earnings in the second quarter of this year, as the Bank of England maintains the base rate at a record low. This proportion is well below the average of 36% recorded over the past 27 years.

http://money.uk.msn.com/house-prices-marked-improvement

The wooden structure on an isolated spit has no running hot water or washing facilities and requires a 30 minute walk, a trip on a train or a short ferry trip to get there.

Yet estate agents were overcome with interest in the 18ft x 10ft timber retreat and a bidding frenzy meant the hut was able to command the record price.

The immaculately-decorated hut on Mudeford Spit near Christchurch, Dorset, boasts stunning dual views of the harbour on one side and The Solent on the other.

The surge in beach hut sales is at odds with the national housing market that is struggling in the financial climate.

The Mudeford sandbank is recognised has having the most expensive huts in the country, although the previous highest price paid for one was £126,000 three months ago.

The £170,000 sum could buy an "exceptional detached villa" with three bedrooms near Glasgow.

It could also buy a Grade II listed cottage in the historic market town of Wymondham in Norfolk or a luxury three bed detached house in Hull.

Hut 97 at Mudeford has solar panels on the roof to provide electricity for lighting and a 12V pump system that supplies water from a tap.

It has a fitted kitchen with gas oven and fridge which can be powered by a battery or gas.

There is a separate bedroom on the ground floor, two single beds in the cramped confines of the roof eaves plus a sofa bed in the living space.

Although it sleeps six, a bylaw only allows overnight stays from March through to October.

On top of the asking price, the new owners will have to pay a ground rent to the local council of £2,500 a year.

It has been bought by a wealthy family with grown-up children from Christchurch.

Andrew Denison, from Denisons Estate Agents in Christchurch, said: "The hut is positioned side-on with views of the harbour and the sea and the Isle of Wight, making it quite rare.

"The dual aspect views and the fact it is such a good size meant that as soon as we put it on the website people found it appealing.

"There was a frenzy of people interested and appointments were booked very quickly.

"The most expensive hut we have sold before went for £126,000 last month and we usually put them on the market for about £140,000.

"But this hut is plush and a fantastic size so I think that is why it went so fast and for so much, I don't know of any that have sold for this sort of figure.

"It must be one of the most expensive beach huts in Britain, I haven't seen any go for more money than this."

There are about 350 beach huts at Mudeford that make up the 23,000 huts in Britain.

Prices of new property coming to market was GBP 246,235, a third consecutive national record. This was 1 percent higher than a month earlier and 2.4 percent above last years' level.

Strong rises in the south of the country have helped to push the national average asking price into new record territory, Rightmove Director Miles Shipside said.

The report, meanwhile, observed that sellers' prices are now 2 percent up on August 2007, the month before the UK economy faced the run on Northern Rock. They have fallen considerably in real terms when compared to retail price inflation over the same period.

London is the only inflation-proof hedge seeing average asking prices 3 percent ahead of the retail price index since August 2007. London and South East regions saw new asking price records in June.

"In these uncertain economic times, lenders feel safer to lend to those with a cash-cushion, and those sitting on that cash often feel more comfortable with it invested in tangible assets, including bricks and mortar," Shipside said.

June saw a weekly run-rate of 29,394 new sellers in the three weeks prior to the disruption of the Diamond Jubilee break. This was the highest new listing run-rate recorded for two years.

Rightmove said this suggested that further increases in asking prices are unlikely as fresh supply exceeds summer demand.

A report from the Nationwide Building Society showed last month that the U.K. houseprices rose 0.3 percent from a month earlier in May, while demand remained subdued. Lloyds Banking Group's Halifax division said prices increased 0.5 percent in May.

by RTT Staff Writer

http://www.rttnews.com/1907677/UK-Property-Asking-Prices-At-New-High-Rightmove-Says.aspx

New data from HSBC shows that the average price of buying a UK property is 86 times higher than in 1952.

When Elizabeth II came to the throne, the average UK home cost just £1,891 – a figure that has risen to £162,722 in the subsequent six decades.

In comparison, retail prices have risen by a multiple of 25 over the same period, which means thatbuying property has been a very profitable investment, even after the effects of inflation are discounted.

Since 1952, the number of houses in the UK has almost doubled, with 14.1 million at the start of the Queen's reign, compared to an estimated 27.3 million today, though the number of new homes being built each year has fallen from 248,320 to 133,840 in the same period.

According to the statistics, two-thirds of the country are now owner occupiers, compared to one third in 1952, while just 14 per cent of people are renting today, whereas half were doing so 60 years ago.

Peter Dockar, head of mortgages at HSBC, said the housing market has changed "a great deal" under the current monarch.

He said: "The aspiration towards home ownership and the increase in house prices has been most dramatic over the second half of the Queen's reign. There is no doubt that property has remained a sound investment over this period."

Buckingham Palace has risen a whopping 9000 per cent in value in the past 60 years, according to figures from Nationwide – from around £11m when she first become Queen to a current estimated worth of £1bn.

http://www.thisisleicestershire.co.uk/Oh-Coronation-prices/story-16258537-detail/story.html

(PRWEB UK) 30 May 2012

In the age of mobile technology it isn’t uncommon for people to take a working lunch and organise their personal admin in the hour break granted from the office. Multi-tasking is essential in the busy lives that commuters, working parents and professionals have to juggle. On a sunny day this could mean sitting in the park soaking up some rays with a smart phone or tablet, paying household bills online, transferring money or searching for a property. The emphasis is on getting things done, and fast. If brands want consumers to choose their services over competitors then they need to tap in to the multi-tasking market and be at the front of consumers’ minds.
The merger of The Digital Property Group and Zoopla seeks to do exactly that. With the merger comes a much bigger marketing budget to play with, a bigger and better tech team to develop faster and smoother user interfaces to mobile apps and websites, and all the tools needed to take on the current market leader RightMove.
“There is likely to be a lot of marketing going on now the merger has been cleared. This is great for estate agents online because more web traffic will be generated as a result which will help to get more exposure for the properties advertised through these online portals” says Cronin.

"If RightMove start to lose agents they would have no choice but to compete on price. This would be fantastic for both online and traditional agents who use the services, as we can all benefit from a decrease in our overheads during these turbulent times"

“As agents we may also benefit from a price war as each of the major portals that we use to sell property online try to win business over each other. If RightMove start to lose agents they would have no choice but to compete on price. This would be fantastic for both online and traditional agents who use the services, as we can all benefit from a decrease in our overheads during these turbulent times”
RightMove, Zoopla and Find a Property have all recently released prime time television advertising campaigns prior to the announcement of the merger. Consumer awareness of these online property search tools is growing and with over a million properties advertised on RightMove there’s certainly no shortage of stock for the portals to fight over.
A knock on effect of a price war between advertising portals could be that estate agents are able to reduce their own fees to vendors creating a further price war that will this time benefit consumers directly, and may well keep the UK housing market ticking over while the government desperately tries to fix it.

Original Article

In the age of mobile technology it isn’t uncommon for people to take a working lunch and organise their personal admin in the hour break granted from the office. Multi-tasking is essential in the busy lives that commuters, working parents and professionals have to juggle. On a sunny day this could mean sitting in the park soaking up some rays with a smart phone or tablet, paying household bills online, transferring money or searching for a property. The emphasis is on getting things done, and fast. If brands want consumers to choose their services over competitors then they need to tap in to the multi-tasking market and be at the front of consumers’ minds.

The merger of The Digital Property Group and Zoopla seeks to do exactly that. With the merger comes a much bigger marketing budget to play with, a bigger and better tech team to develop faster and smoother user interfaces to mobile apps and websites, and all the tools needed to take on the current market leader RightMove.

“There is likely to be a lot of marketing going on now the merger has been cleared. This is great for estate agents online because more web traffic will be generated as a result which will help to get more exposure for the properties advertised through these online portals” says Cronin.

“As agents we may also benefit from a price war as each of the major portals that we use to sell property online try to win business over each other. If RightMove start to lose agents they would have no choice but to compete on price. This would be fantastic for both online and traditional agents who use the services, as we can all benefit from a decrease in our overheads during these turbulent times”

RightMove, Zoopla and Find a Property have all recently released prime time television advertising campaigns prior to the announcement of the merger. Consumer awareness of these online property search tools is growing and with over a million properties advertised on RightMove there’s certainly no shortage of stock for the portals to fight over.

A knock on effect of a price war between advertising portals could be that estate agents are able to reduce their own fees to vendors creating a further price war that will this time benefit consumers directly, and may well keep the UK housing market ticking over while the government desperately tries to fix it.

London continued to top the tables for house price increases in April while average house prices for the whole of the UK declined 0.3 per cent, data from Land Registry revealed.
According to the April 2012 market trend data from Land Registry, average property prices in England and Wales were £160,417 in April.
London bucks the overall trend of falling house prices, experiencing a rise of 5.1 per cent compared to both the previous month and the previous April, to an average price of £360,721
Meanwhile, Yorkshire and Humber experienced a greater annual decline in house prices than any other UK region, with average prices falling 5.6 per cent to £115,783. The region reporting the largest monthly decline in prices was the West Midlands, where prices decreased 2.7 per cent compared to March to £126,527.
During February 2012, the number of completed house sales in England and Wales increased by nine per cent to 43,331, compared with 39,670 in February 2011.
David Brown, commercial director of LSL Property Services, said: “On top of finding the funds for significant deposits, thousands of buyers now need to pull together enough cash to pay the taxman, and this will result in an even longer tenure in the private rented sector for many.

“But the fall also points to lenders being forced to pull back on higher LTV lending as a result of negative economic news and the ongoing crisis on the continent, and this is proving an additional hurdle for new buyers.
“However, despite the drop, it is well worth noting that house prices are still higher than at the end of 2011, highlighting the resilience of the housing market in spite of the economic climate.”
Richard Sexton, director of E.surv chartered surveyors, said: “The housing market is being propped up like a Friday night drunk by landlords and wealthier buyers. House prices are tied to events across the Channel, and the market is feeling the full force of the political chaos that is paralysing the eurozone.
“The crisis is stemming the flow of mortgages, which is stifling first time buyer activity and dragging down prices. Fear in the investor markets over the future of the euro has pushed banks funding costs up by 40 per cent since February. The major banks have responded by bumping up mortgage rates, and reducing lending to first time buyers to protect their balance sheets.”

By Michael Trudeau | Published May 29, 2012
Original Article

Original Article

At the start of the Queen's reign the average property was priced at £1,891, compared to an average £162,722 today, the research from HSBC reveals.

By comparison, retail prices have risen by a multiple of 25 over the same period, meaning that for most people buying a home has been a very good investment even after stripping out the effects of inflation.

The number of dwellings in the UK has almost doubled since 1952, with 14.1 million at the start of the Queen's reign, compared to an estimated 27.3 million today. However, the number of new homes being built each year has fallen by 46% from 248,320 in 1952 to 133,840 in the latest estimate.

Two thirds, 68%, of the country are now owner occupiers, compared to one third, 32%, in 1952. Indeed, at the start of the Queen's reign half of the country was renting privately compared to 14% today.

Regional house prices are not available back to 1952, so instead the research has examined house price growth since the Queen's Silver Jubilee in 1977.

London has seen the largest increase in house prices over the past 35 years, an increase of 1,782% from £15,593 to £293,375. The South West has seen a 1,400% rise from £12,155 to £182,272. East Anglia saw a 1,307% increase from £311,679 to £164,285.
Northern Ireland has seen the smallest increase, but it is still a hefty 665% from £13,322 to £109,562 while Scotland saw a 889% increase from £13,674 to £135,242.

Chelmsford, Perth and St Asaph are to gain city status to mark this year's Diamond Jubilee. These are not the first new cities created to celebrate the Queen's reign, other include Preston in England, Newport in Wales, Stirling in Scotland, and Lisburn and Newry in Northern Ireland for the Golden Jubilee in 2002.

Brighton and Hove, Wolverhampton and Inverness gained city status to mark the turn of the century in 2000 and for the Silver Jubilee in 1977 Derby was awarded city status.

‘The housing market has changed a great deal under the current monarch, with the aspiration towards home ownership and the increase in house prices most dramatic over the second half of the Queen's reign. There is no doubt that property has remained a sound investment over this period,’ said Peter Dockar, head of mortgages at HSBC.

‘Home ownership remains an ambition for many and we continue to make new products available to help first time buyers achieve their dreams of taking their first step onto the property ladder,’ he added.

ORIGINAL ARTICLE

In what is being billed as a "pay to stay" scheme, Downing Street has swung behind plans to introduce a new household income threshold above which social tenants must pay full market rent. The government is expected to say that rent subsidy will be capped at a household income of £60,000, meaning, for example, a couple on £30,000 each could see their rent rise by about £70 a week.

The scheme, applicable to all housing association and council properties, is explicitly designed to make social housing primarily available to the poor.

The housing minister, Grant Shapps, has referred to the idea before, but Downing Street's embrace of the proposal means it will now go ahead with a consultation paper next month.

The government says it is necessary to remove an unfairness in the system and to allocate scarce housing resources more efficiently. Critics will say the scheme will give wealthier families an incentive to buy their property at discounted rates, removing social housing from the market.

The government has been accused of driving some poor tenants from properties in wealthier inner-city areas by introducing a higher rent, set at 80% of the market rent. It has also introduced a so-called spare room tax, so that under-occupying social tenants of working age are docked £14 a week for one spare bedroom and £25 a week for two. No tenant will receive more than £500 a week in welfare payments, a measure that will affect larger families on housing benefit.

The welfare cap is, in polling terms, one of the most popular policies the government has introduced, and the new £60,000 household income cap for social housing tenants is likely to win equally wide support.

A No 10 source linked the two measures, saying: "It's not right that high earners benefit from taxpayer-funded housing subsidy. Just as we have introduced a cap on housing benefit and welfare payments to make the system fairer, now we're acting on social housing too."

Government sources added that social housing should be regarded as a precious asset to be devoted to those most in need, not a cheap option for those who can afford competitive rents or their own property.

The government consultation, due to be launched next month by Shapps, will suggest a range of options for the threshold, with the lowest at £60,000.

Ministers have been looking at a range of proposals to make social housing more flexible, including the removal of so-called lifetime tenancies, replacing them with fixed-term tenancies. Social housing tenants can also no longer pass their homes to their children.

Government research shows that as many as 6,000 social rented homes in England are lived in by people who earn a combined income of more than £100,000, including Bob Crow, leader of the RMT union. At the proposed £60,000 threshold, ministers estimate as many as 34,000 social rented homes in England alone would be affected.

It is being stressed that no one would be evicted from their home, simply that they would have to pay higher rents.

The government claims the economic subsidy provided by sub-market rents for social housing is worth £3,600 a year on average, or £69 a week.

The total cost of this annual subsidy for those above the £60,000 threshold is £122.4m, and the annual subsidy for a £100,000 threshold is £21.6m.

Social rents are set on the basis of a formula linked to size of the property, its value and local earnings.

Labour has always argued that social housing should be for a mix of tenants and not seen as the preserve of the poor. The Liberal Democrats have curbed some government housing reforms, but could arguably support the measure as a legitimate restriction on middle-class welfare.

However, social housing has been increasingly taken up as an option by young professionals unable to afford to own their own home. The cost of the cheapest quarter of homes is now more than six times average household income and eight times in London.

The overall social housing budget was cut by more than 50% in the 2010 spending review, to £4.4bn, and the number of people on council waiting lists is now 1.8m, an 80% increase in the last decade.

In a report this week, Shelter, the Chartered Institute of Housing and the National Housing Federation said the government was failing on five of its 10 key indicators: affordability of the private rented sector, help with housing costs, homelessness, housing supply and overcrowding.

ORIGINAL ARTICLE

The House Price Watch from Assetz puts the price of an average house in March at £202,017. This represents not only a 3% increase on the quarter but also a 0.8% rise on February and 1.2% over the last year.

The Assetz index is an average of five other indexes: the AcadHPI, ONS, Nationawide, Halifax and Rightmove.

Despite the obvious differences in methodologies and views of each individual index on the average house price in March (see table below), what we should really be looking at is the trend. Just about every index since early 2010 shows that the housing market is level.

AcadHPI £221,543 
ONS £224,473
Nationawide £163,327
Halifax £163,803
Rightmove £236,939
Average £202,017

There appears to be (for the moment anyway) a balance between supply and demand that is keeping house prices relatively stagnant. And, with government attempts to keep repossessions at bay as well as earmarking more taxpayers’ money for ‘social housing’ without increasing stock by any great amount, this looks likely to continue into the future.

As Stuart Law, the founder of Assetz, points out we not only have a ‘new’ reduced level of transactions at 50% of 2007 we also have a situation where the level of rental demand is high, boosting landlord ownership of housing. This may be keeping house prices higher than ordinary buyers can afford.

Commenting on the data Stuart Law, Chief Executive of Assetz, said “The year has got off to a strong start, with a 3% rise in average house prices in the first quarter as an average of all of the main indices. Whilst there were a number of factors driving the market upwards, such as a rush to complete purchases ahead of the stamp duty holiday being withdrawn, there were also a number of negative factors such as rising mortgage rates that failed to quell the rise in transactions. In fact, HMRC figures showed a large surge in completed sales in March, up 17% in a month, as house buying demand continued to grow.

“Mortgage lending was also up 30% month on month in February. Nonetheless we still have the ‘new normal’ level of transactions, only around half of those in 2007, and we have no expectation that transaction levels will reach those peaks again for many, many years as we move towards becoming a rental society in the UK.

“We feel that our estimate of a 3% rise in UK house prices for the whole year of 2012, which was at the top of the range of forecasts, could be comfortably achieved, regardless of the initial version of the GDP figures released today indicating that the economy is falling slightly again.

“The UK buy to let community is still one of the main beneficiaries of this double dip recession, with the overall depressed mortgage market driving the private rented sector onwards and upwards. We continue to see strong demand from both experienced and first time investors looking to buy in this strong market.”

Read more: http://www.economicvoice.com/house-prices-rise-3/50029432#ixzz1vPZlZU20

The FTSE 250 company said on Friday that 2011’s full-year operating profits came in at £69.4million, up 23 per cent, adding that traffic has increased by 20 per cent so far this year.

The number of advertisers rose by just 1 per cent to 18,276 in 2011 – in line with the trend seen the year before – but the average revenue per advertiser grew by 17 per cent to £443 a month.

Managing director Ed Williams said the results reinforced the belief that property advertisers will spend more this year on online media than local newspapers for the first time.

‘The Rightmove business model has proven to be remarkably resilient in the unprecedented downturn in the property market experienced in 2008. We have been able to grow significantly even in the difficult housing market thereafter,’ the company added.

Analyst Dominic Buch, of Numis Securities, said the performance was slightly ahead of expectations, noting the success of the product bundling strategy which resulted in a major increase in average spend.

‘We believe the monetisation of mobile and the new local valuation alert service, which provides sellers on the site the ability to request a valuation from up to four agents, provides material medium-term upside,’ he added.

Read more: http://www.thisismoney.co.uk/money/markets/article-2105977/Rightmove-profits-soar-online-advertising-spending-jumps.html#ixzz1vPYSEji9

The onset of the spring moving season generally leads to more ambitious pricing of properties coming to market, partly due to estate agents vying for new seller instructions.

However, this February’s 4.1% (£9,192) increase is the highest monthly rise Rightmove has recorded since April 2002, a surprisingly strong uplift given the challenging economic environment.

In part this is fuelled by the cash-rich sectors of the market where buyer demand is exceeding suitable property supply, though there is also evidence of increasing housing market confidence. After four years of constant economic uncertainty, it seems some property consumers have accepted current market conditions as the new norm.

Miles Shipside, director at Rightmove comments: “We’re seeing a strong ‘spring bounce’ in asking prices this year, but the ball is still a lot smaller than it was before the credit crunch as market volumes are constrained. The biggest jump in new sellers’ asking prices for nearly ten years indicates 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. 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.

However, there are also indications that those who are able to buy but had previously lacked the confidence to take the plunge are of a more positive mindset this year. Perhaps some people are adjusting to the realities, opportunities and strange normality of a low volume but apparently stable property market”.

Properties coming to market in the early months of the year are often the beneficiaries of a ‘spring bounce’ in asking prices, particularly during the years between 2000 and the onset of the credit crunch. For example, monthly rises of 4.5% were recorded in both February and April of 2002. Since then the largest percentage monthly uplift has been the 3.6% of April 2007. If a more bullish asking price is accompanied by a strong and market-wide seasonal increase in buyer activity, and finance is available to support it, then the local market accepts the increase. This was the pre-credit-crunch norm, but the current UK housing market is now characterised by a number of highly localised micro-markets performing very differently. Potential homemovers’ confidence and ability to move in these micro-markets are affected by a number of factors including access to finance, employment dynamics and mix and availability of housing stock. Upwards price-pressure is understandable in active cash-rich micro-markets with a new listings shortage where demand exceeds
supply, though there are also some early signs of more widespread increases in consumer confidence in the housing market.

Compared to a year ago there is more competition from lenders to attract a greater volume of quality business. The number of available products for both borrowers with a 10% deposit and buy-to-let investors has risen by 35% and 25% respectively over the last 12 months1. There are some attractive five and ten year fixed-rate deals too.

While the £250,000 band stamp duty holiday for first-time buyers ends on 24th March, incentives for buyers of new build properties (which are not included in the Rightmove House Price Index) are set to be enhanced with the launch of NewBuy. This is an industry-led initiative supported by Government to increase the availability of higher loan-to-value mortgages for those buying a brand new me.

Shipside observes: “Since the credit crunch you’ve had to be squeaky clean to pass a credit score, but lenders have more product offerings and are advertising their availability far more strongly in the media. If your mindset is that lenders do not want to lend, then you may not want to bother sourcing finance and face potential rejection. Some agents report that this recent higher product profile from lenders has given some previously disenfranchised buyers new hope”.

60% of the 32,000 questioned in a recent Rightmove survey stated they feel the current housing market favours buyers, a clear indication that there is buyer bidding- power in their area to get a lower offer accepted. The same survey also found that just over half (51%) viewed property as lower risk when compared to other investment options, providing further evidence of confidence in property as an asset class.

Shipside explains: “Prices of some property types in some areas have dropped back enough to offer temptingly affordable homes, either to investor landlords looking for good rental yields or to buyers comparing mortgage payments to the costs of renting. 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”.

Record January search activity on Rightmove indicates a pent-up desire to move that out-weighs the uncertain economic outlook. With sales transaction numbers having been depressed for the last four years, many households will have a pressing need to move, and some of those that are able to do so seem to be springing back to life.

Shipside comments: “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”.

Some agents report that sales achieved in the last quarter of 2011 have now left them short of saleable stock. In October last year average unsold stock per estate agency branch was 75 properties, and this has now fallen to 67. This is further evidence of a pick-up in buyer confidence and demand starting to eat away at the rump of unsold stock. Lack of capacity in the new-build sector and sellers’ reticence to come to market also means that properties that are coming off the market are not being replaced at the same rate.

Average weekly listings are currently running at circa 30% below pre-credit crunch levels, and new seller numbers continue to be as depressed as those of 2011. The weekly run-rate of 24,406 new listings is virtually unchanged on the 24,327 recorded in the same period last year. Upwards price-pressure is likely to be sustainable in active cash-rich micro-markets with a shortage of new listings. For example, London asking prices are now less than 1% off their all-time high, with property coming to market down 9% on this time last year.

Shipside adds: “When prospective home-movers see less property advertised for sale and those that are turning over more quickly, it has a positive effect on their confidence to move and encourages them to act with more urgency. 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 un-saleable. However, in some micro-markets the shortage of existing and new instructions is such that it has helped contribute to the largest monthly jump in new seller 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”.

http://propertytalklive.co.uk/component/jomcomment/trackback/8398/com_content

Zoopla.co.uk, which has now broken into the top 100 websites in the UK, was ranked 98th by Experian Hitwise in January for share of total web pages viewed by UK users, putting it well ahead of its longer-established rivals including Findaproperty (ranked 125th) and Primelocation (ranked 193rd).

Zoopla.co.uk’s position as the #2 UK property website behind only Rightmove is confirmed by the most recent figures for December released by website monitoring firm UKOM Nielsen.

According to UKOM Nielsen data, the unique audience figures in December were 1,034,000 for Zoopla compared to 852,000 for Findaproperty and 656,000 for Primelocation.

Over the past 12 months, Zoopla.co.uk has seen exceptional growth with leads sent to its member agents up an impressive 368% since last January, making it one of the most important sources of enquiries for UK agents and developers.

In January alone, Zoopla.co.uk recorded numerous new daily traffic highs with almost 8 million visits during the month and 3 searches per second being conducted on its website.

Alex Chesterman, Founder & CEO of Zoopla said:

"We are delighted to have made it into the top 100 UK websites by share of pages viewed in January. We continue to innovate and invest in making Zoopla.co.uk the UK’s leading online destination for both property search and property research and are clearly having a major impact in the space for both consumers and our agent members.”

Unique visitors to the UK's leading property portals

1. Rightmove    2,350,000

2. Zoopla    1,034,000

3. Findaproperty    852,000

4. Primelocation    656,000

http://www.myintroducer.com/view.asp?ID=6170

House prices increased by 0.6 per cent in January. which is the second increase in the last six months and the first since October, data from Halifax’s monthly house price index has shown.

Prices in the three months to January were 1.8 per cent less than for the same period a year earlier.

This measure of the annual rate has edged lower in the last two months from minus 1 per cent in November, but is still comfortably above the recent low point of minus 4.2 per cent in May 2011.

The UK average house price in January at £160,907 was very similar to that in May 2011 at £161,039.

According to Halifax, there has been a “modest pick-up” in housing activity.

The industry-wide number of mortgages approved to finance house purchase held steady at close to 53,000 for the third successive month in December.

Overall, approvals in the final three months of 2011 were 3 per cent more than in the previous quarter and 16 per cent greater than in the same period of 2010.

Halifax claimed the recent improvement in employment trends may have supported housing demand.

The number of people in employment in the three months to November was 18,000 more than in the preceding three months (June to August).

This was the second consecutive increase on this quarterly basis following falls since May.

He said: “Low rates have contributed to mortgage payments falling to their lowest level as a proportion of disposable earnings for a new borrower for 14 years. A recent improvement in employment trends may also have supported demand.

“Prospects for house prices over the coming months will, to a large extent, depend on events in the eurozone and the repercussions of developments there for the UK economy. If the UK can avoid a prolonged recession, we expect broad stability in house prices in 2012.”

Martin Ellis, housing economist of Halifax, highlighted the “continuing very low level” of interest rates has helped to support housing demand, resulting in little overall movement in house prices since last spring.

http://www.ftadviser.com/2012/02/06/investments/economic-indicators/halifax-reveals-average-uk-house-prices-is-k-yRs6FSCMMmMqseUrZ7kp6M/article.html

WHAT DOES PRIME ACTUALLY MEAN?
There is no dictionary definition of prime, but usually, in more established prime areas, such as Knightsbridge, Mayfair and Chelsea, it means there are a high volume of properties worth more than £2m. For more development-led prime areas, such as the Southbank, the City and the City Fringe, it means that properties are regularly achieving over £1,000 per square foot. Usually we find that these prime areas have common factors as well as being centrally located. These are fantastic retail outlets, good transport links and high levels of top-end housing stock.

ARE OVERSEAS BUYERS SNAPPING UP ALL THE HOMES?
No, but they are certainly an important market. Around 53 per cent of sales in PCL are to buyers from overseas, and there was increased interest from Greek and Italian buyers late last year. Greek buyers invested £276m in Prime London property last year, while Italians spent £377m.

WHAT ABOUT RENTS?
Rents in the prime central London area have also risen strongly over the last year and are higher than they were during the previous peak in 2008. As with the rest of the UK, there has been increased demand for rental property as transactions eased. But for those wondering how high rents can actually go, there has been a respite, as prime central London rents have slipped over the last three months, the first falls seen since 2009. They are still 6.7 per cent higher year on year however.

WILL THE CRISIS IN THE EUROZONE AFFECT THE MARKET IN LONDON?
The Eurozone crisis is certainly casting a shadow over the UK, and global, economy. There is no doubt that the UK’s economic growth rate will be affected if the Eurozone crisis deepens further or if the Eurozone breaks up. This will have a knock-on effect on all areas of the housing market. But there is an argument that prime central London property would still be seen as a safe haven amid very uncertain times in Europe.

However our central forecasts are based on the Eurozone weathering the storm and remaining united.

WHERE IS THE BEST PLACE TO BUY IF MONEY IS NO OBJECT?
It really depends on what your priorities are. For some buyers, being close to their children’s school or university will be paramount, some will want to live in a building with iconic architecture and top- end service, while others may want to start from scratch in an untouched townhouse. But a major factor to bear in mind is security. In this respect Kensington Palace Gardens fits the bill, as do some of the recently developed buildings in the capital.

WHERE IS THE BEST PLACE TO BUY IF MONEY IS AN OBJECT?
Look for locations on the edge of prime or where future infrastructure investment will pull your location into a more desirable bracket – so property within walking distance of Crossrail stations, for instance Aldgate and Farringdon are interesting to consider.

IS IT TRUE THAT BEING NEAR A GOOD RESTAURANT CAN ADD VALUE TO A HOME?
We recently did some research across the UK focusing on Michelin-starred restaurants and found that house prices close to some of the best restaurants, such as the Fat Duck and Whately Manor have climbed by twice as much as other properties in the wider locality. In London most people are surrounded by good bars and restaurants. This certainly is part of the attraction of living in London, and why many are willing to pay a premium to do so.

http://www.cityam.com/living/kensington-farringdon-why-london-s-prices-are-buoyant