Landlords confidence rises as 2010 approaches.

Landlords are going into 2010 with a positive perspective on the market, an industry expert has claimed.
Chris Horne, editor at Property Hawk, commented that the low interest environment had improved cash flow and pointed to rising demand from tenants as the so-called "accidental landlords" are exiting the market.
"With supply reducing, tenant demand still strong and interest rates low - I think landlords are feeling reasonably comfortable going into 2010," Mr Horne said.
He noted that the biggest concern among landlords is likely to be in relation to their tenants' ability to pay rent as a result of job losses or financial hardship.That is why your choice of agent to manage your portfolio is so important.
Research released by Paragon Mortgages in October revealed that many landlords anticipate an increase in the net value of their property portfolios over the next 12months.
This was calculated as an average rise of 0.8 per cent among those surveyed.
The organisation reported that this was the first positive outlook in the market in more than two years.

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Mortgage loans issued rise.

The number of home loans issued in October reached 55,000, according to figures released by the Council of Mortgage Lenders (CML) in December.
Mortgage approvals in October reached their highest level since December 2007, with a rise in the number of buyers on the market also noted.
Data from the CML showed that there were almost 100 per cent more buyers on the market in October than in January this year.
Despite the improvement in new buyer loans, this increase is not matched by remortgaging figures.
CML research revealed that remortgage approvals had remained static at 33,000 for two months.
The National Association of Estate Agents (NAEA) reacted positively to the news, stating that the increase in buyers demonstrated the effect of the stamp duty holiday on the market.
Peter Bolton King, chief executive at the NAEA, said that the return of first-time-buyers is important: "It is really encouraging to see an increase of 34 per cent in this critical sector of the market within the last 12 months."

Sell before the general election.

Whatever the state of the market, people tend to believe that timing can make all the difference. In fact, this is a bit of a myth. Second-guessing the market isn’t that easy – otherwise we’d all be doing it. So, for all practical purposes, you may as well stop worrying about timing, and simply sell when it suits you.
That said, there is one rather unusual event scheduled for the early part of 2010 which is probably worth trying to avoid. I’m talking about the forthcoming General Election. This must happen at the latest in May, and there are rumours that it could even be as early as March.
Why should you try and avoid it? Well, for the simple reason that historically, elections tend to have something of a depressing effect on the housing market (amongst other things!). Precisely why this should be is not entirely clear, but it is probably due to the added element of uncertainty about the future which they introduce into the normal course of events. In the case of this particular election, that uncertainty is likely to be exacerbated by the widely-held belief that we may well see a change of government. Both buyers and sellers are therefore doubly likely to hold back from making any major decisions until the result of the election – and the consequences of that result – have become clearer.
And talking of the consequences…call me a cynic, but there is a natural tendency, particularly in difficult times like the present, for new governing parties to load all the bad news onto the front end of their administration - and blame their predecessors. You know the sort of thing: “I know we pledged not raise this or that tax, but we didn’t fully appreciate what an utter shambles we would have on our hands until we got a close look at the books!”
So, if I were you, and I wanted to move house in the first half of next year…I would definitely start the ball rolling as soon as possible.

What is a flying freehold ?

A flying freehold applies where part of one property – for example an upper room or loft space – physically extends over another. This means that the owner of a flying freehold does not actually own the structure which supports that part of his or her property. They are therefore entirely dependent upon the goodwill of the owner of the adjoining property for its upkeep and structural integrity. A flying freehold can also exist where part of a property sits over a communal access area, like an archway.
Of course, this sort of thing happens all the time with houses that have been converted into separate flats, or purpose-built apartment blocks. The difference is that these are invariably leasehold, so there is always a freeholder somewhere who retains the power to compel each leaseholder to maintain their part of the communal fabric.
By contrast, no-one can compel a freeholder to do anything!
This may sound drastic, but in practice most flying freeholds have been around for donkeys’ years without causing anyone any trouble. However – precisely because they are a departure from the norm, and something of an anomaly - solicitors quite rightly tend to be rather wary of them. Banks and building societies even more so. Fortunately, they’re relatively rare in most parts of the country these days. Nevertheless, they do persist in some areas, particularly with older properties.
So…what happens if you’re a cash buyer, and the home of your dreams turns out to have a flying freehold? What then?
Well, while it’s undeniable that it can complicate matters, and your solicitor will certainly want to check it out very thoroughly indeed, the fact is that most of the difficulties associated with flying freeholds are easily surmountable – for example, by taking out indemnity insurance.
So, if you’re faced with a flying freehold on a property that you really can’t resist, my advice would be to grit your teeth and go for it.

Next interest rate decision is on 10th December

Mortgage lenders are becoming more relaxed about providing housing finance to buyers, it has been asserted.
According to Moneyfacts.co.uk, lenders have grown accustomed to the post-financial crisis world and the position that they - and market participants - are now in.
As such, more mortgage deals have become available for those trying to get on the property ladder.
The financial advice website suggested that the fact that the Bank of England's base rate of interest has been maintained at its current level of 0.5 per cent for the last eight months or so has helped create this new situation.
"Indeed, the signs from the mortgage market indicate that credit conditions are easing and that lenders are more willing to lend," Moneyfacts.co.uk stated.
The Bank's Monetary Policy Committee is set to take its next decision on whether to raise, lower or maintain the base rate of interest at its meeting on December 10th

Is this a good time to consider a buy to let purchase ?

According to the Retail price index ,there would have been a 2.4% return on any property investment over last 12 months,taking into account rental income and a slight drop in house prices over that period.
The last time residential property achieved such a return was in the period from July 2007 to July 2008.
Returns have improved significantly since the low in February 2008 when losses were estimated at over 11%.
April 2009 was the best time for buy to let investors with an expected return of 7.4%already and a projected annual return by April 2010 of 15%.
There was also news from the CML recently of an increase in buy to let lending in the third quarter which is the first increase in more than two years.
So now might be the right time to consider entering the rental market, so as not to miss the boat.

Instruct your agent now ?

If you are wanting to move in the early part of next year or by the spring, you should be instructing your estate agent of choice now. Waiting for the new year means putting your property on the market when everyone else does.
Most estate agents are going to have quite a lot of time to spare over the next two or three weeks. My advice is that you use this period to get everything in place, so that you’re in a position to hit the ground running, immediately the festive season is over. So, do your research, select your agent and instruct them. They in turn will have plenty of time to get everything ready – from taking good-quality photographs and preparing property details and other marketing materials, to advising you on any little things you can do to improve the buyer-appeal of your home, and getting your Home Information Pack sorted out.

The net result of all this is that you will be ideally placed to take the fullest possible advantage of the New Year surge in market activity which always follows the Christmas lull, like night follows day. So, while everyone else is waiting for their HIPs to come through, you will be able to begin marketing from Day One.

Bear in mind that one of the biggest challenges facing the market right now is a shortage of instructions - so if you can steal a march on other sellers in this way, you should really be in line for a happy New Year!