Happily, very little – as far as one can tell. Of course, this wasn’t a normal budget in any sense of the word. However, as with any budget – emergency or not - no news is almost invariably good news!
As far as specifics are concerned, the increase in VAT to 20% from January next year admittedly does mean that fees and other costs associated with buying and selling property will rise slightly. Nevertheless, the really big worry - that Capital Gains Tax would be hiked to 40%, with the dramatic effect that might have had on the market – thankfully turned out to be groundless. Yes, higher-rate taxpayers will now have to pay CGT at 28%, but that isn’t so high as to trigger a wholesale stampede away from property as an investment. Meanwhile, of course, there will be no effect whatsoever on standard rate taxpayers, who will continue to pay CGT at 18%, as before.
Indeed – insofar as there was any good news for anyone - the Chancellor seemed positively determined to lavish most of it on the property sector, by reinstating the tax breaks on holiday lets scrapped by the previous Government. This means that one of the main tax reasons for owning a furnished holiday let remains the fact that owners can offset any losses against other income.
So, all in all, I believe the property sector got off pretty lightly indeed in the budget.
Moreover…when you bear in mind that these measures come hard on the heels of the Conservative’s pre-election commitment to raising the Stamp Duty threshold permanently to £250,000 for first time buyers – and, of course, the scrapping of Home Information Packs immediately they came into power – I actually think it’s been a pretty good couple of months for the property market. Add to that the fact that all the uncertainty surrounding both the election and the much-trumpeted emergency budget itself is now finally behind us, and I wouldn’t be at all surprised to see the market really start to take off.
Thursday 24 June 2010
Friday 18 June 2010
With all the technology that’s available today, why would anyone use an estate agent, instead of handling the sale themselves?
Of course, it’s not impossible to sell your own home without recourse to a conventional estate agent. Despite this, however, only a tiny fraction of people actually do so. Nor have sellers exactly rushed to patronise those so-called internet agents who offer a basic, fixed-fee package.
Why is this? Well, for the simple reason that that there is a whole lot more to selling your home than sticking a homemade board in your front garden and an ad in your local paper – or online, come to that. Even assuming that you actually succeed in generating some enquiries, how do you sort the wheat from the chaff, the serious applicants from the complete timewasters? Leaving aside the security implications of letting complete strangers into your home, do you really have the time or the knowledge to handle all the viewings yourself, answer any queries and present your home in the best possible light? How do you qualify would-be buyers, to ascertain their financial circumstances and their ability to proceed with the purchase? Where do you turn for the expert advice and support you need to deal with all the stressful situations that can arise – for example, when your buyers come back demanding a price reduction on the basis of a problem unearthed by their survey? How do you go about monitoring the progress of the sale, and how do you deal with delays with other transactions up and down the chain? How to you understand the legal process and deal with solicitors ?
In fact, the more you think about it, the more amazing it is that anyone should want to try and handle all this on their own.
For more information on selling preparing your property for sale go to : www.trustintudor.co.uk
Why is this? Well, for the simple reason that that there is a whole lot more to selling your home than sticking a homemade board in your front garden and an ad in your local paper – or online, come to that. Even assuming that you actually succeed in generating some enquiries, how do you sort the wheat from the chaff, the serious applicants from the complete timewasters? Leaving aside the security implications of letting complete strangers into your home, do you really have the time or the knowledge to handle all the viewings yourself, answer any queries and present your home in the best possible light? How do you qualify would-be buyers, to ascertain their financial circumstances and their ability to proceed with the purchase? Where do you turn for the expert advice and support you need to deal with all the stressful situations that can arise – for example, when your buyers come back demanding a price reduction on the basis of a problem unearthed by their survey? How do you go about monitoring the progress of the sale, and how do you deal with delays with other transactions up and down the chain? How to you understand the legal process and deal with solicitors ?
In fact, the more you think about it, the more amazing it is that anyone should want to try and handle all this on their own.
For more information on selling preparing your property for sale go to : www.trustintudor.co.uk
Friday 11 June 2010
Southend property market up date June 2010
Sales
The month of May saw record numbers of homes sold and new properties coming to the market in the Southend area and across Essex. At Tudor we saw significant rises in the level of activity; this was also seen by other agents in the wider area.
The Nationwide survey showed that house prices increased by 0.5 per cent during May. The rise may be due in part to the "honeymoon period" following the election of a new government as consumers begin to embrace a more stable economy. Plus the removal of HIPs has been a positive move in encouraging people to place their properties on the market
However prices are unlikely to keep rising as fast and at Tudor we expect them to even out over the coming year.
The Nationwide report also noted that the annual rate of house price inflation was 9.8 per cent. The report shows that the typical value of a dwelling stood at £169,162 last month, which was up from the £167,802 registered in April.
It is interesting to see following a drop of 19.3 per cent from their October 2007 peak, house prices have risen by 12.2 per cent and are now just 9.5 per cent below the October 2007 high.
Meanwhile, the Land Registry figures confirm that the average value of homes in England and Wales in March was up 9.7 per cent compared with the same period last year.
The new coalition government has also given positive endorsement of the housing market. Aspiration to home ownership will be encouraged, says housing minister Grant Shapps. In his first speech as housing minister, he said that “The age of aspiration was back,” and he underlined the importance of first-time buyers to the market .He said “It was not right to deny a new generation something his own generation had enjoyed, the chance of home ownership.”
Shapps went on to say, ”There are an estimated 1.4m households who aspire to own a home but are unable to do so because of house prices and mortgage availability. There are hundreds of thousands of people in rented accommodation, or living with parents, who yearn to be first-time buyers. It is now true that the average age of the first-time buyer is 37. He said “The new Government would promote shared ownership schemes, and wanted to see more house building.” The government will give planning powers to local people. “We understand that the transition to a more open, transparent and democratic planning system is not entirely anxiety-free for many involved. But we know that there is no future in this centrally planned system which has so dramatically failed, delivering fewer homes now than during any peacetime year since 1924.”
At Tudor we believe the local housing market will remain strong in the medium to long term due to the continued investment in the areas infrastructure and the lack of land to build new homes for the increasing demand.
Rental
Certainly the demand for well priced and presented properties remains as strong as ever.
However, with the government’s announcement over possible changes in capital gains tax some landlords have taken the decision to bring forward the sale of their rental portfolio’s and avoid the risk in paying higher tax. This has been very limited in our experience and the majority of our investment clients are looking to expand their rental portfolios.
One note of caution should be sounded, a recent survey of 500 private landlords has shown that rental arrears have reached their highest level since the research began in 2006.The survey, by market research agency BDRC Continental, found that in the last 12 months, 34% of landlords have had tenants who fell into rental arrears. This shows the importance of dealing promptly and effectively with a potential problems and the need for experience in handling rent arrears. At Tudor we are happy to report that the small amounts of tenant arrears have not increased.
Auctions
Our auction in May proved very successful with all our available lots selling, maintaining our 100% sales record. More importantly for our vendors the prices obtained were either very close to or in excess of the estimated open market value. This confirms that our approach that realistic guide prices and reserves deliver the right investors to the auction sale. This in turn produces excellent results for anyone wanting to sell rental portfolios, land, commercial investments or freeholds.
Mortgage Market Update by Kit Thompson, Director, Amber Mortgage Solutions
There is some positive news so far this month, with a number of lenders reducing the cost of mortgage funding on fixed rate products, including Nationwide, Abbey, Alliance and Leicester. Nationwide has also shaved up to 96 basis points of some of their fixed rate products.
Platform are set to launch a new "couples" mortgage for joint borrowers, with preferential rates and income multiples, on the basis of joint mortgages historically performing better than single mortgages. Rates to be announced tomorrow, but are expected to be as low as 3.19% fixed, at 70% LTV.
In the secured loan market, NEMO have re launched second charge lending up to 85% LTV, an extremely positive sign that they believe property values can only be on the up. Coupled with this, they will now lend to self-employed up to 75% LTV (they formerly only considered employed applicants) and they also lowered the credit score on their 80% products, to allow more cases through.
The Mortgage Works (specialist intermediary lender of Nationwide) has also launched a new 'prime' mortgage range, available exclusively via mortgage brokers. TMW’s new prime range includes free valuation on purchases, capped trackers, early repayment charge free trackers, a range of cash-back
options and a lifetime variable rate product. Other highlights to the range include a two year early redemption charge free tracker from 2.99% up to 75% LTV, and a range of two, three, four, five and seven-year fixed rate mortgages from 2.59%.
The month of May saw record numbers of homes sold and new properties coming to the market in the Southend area and across Essex. At Tudor we saw significant rises in the level of activity; this was also seen by other agents in the wider area.
The Nationwide survey showed that house prices increased by 0.5 per cent during May. The rise may be due in part to the "honeymoon period" following the election of a new government as consumers begin to embrace a more stable economy. Plus the removal of HIPs has been a positive move in encouraging people to place their properties on the market
However prices are unlikely to keep rising as fast and at Tudor we expect them to even out over the coming year.
The Nationwide report also noted that the annual rate of house price inflation was 9.8 per cent. The report shows that the typical value of a dwelling stood at £169,162 last month, which was up from the £167,802 registered in April.
It is interesting to see following a drop of 19.3 per cent from their October 2007 peak, house prices have risen by 12.2 per cent and are now just 9.5 per cent below the October 2007 high.
Meanwhile, the Land Registry figures confirm that the average value of homes in England and Wales in March was up 9.7 per cent compared with the same period last year.
The new coalition government has also given positive endorsement of the housing market. Aspiration to home ownership will be encouraged, says housing minister Grant Shapps. In his first speech as housing minister, he said that “The age of aspiration was back,” and he underlined the importance of first-time buyers to the market .He said “It was not right to deny a new generation something his own generation had enjoyed, the chance of home ownership.”
Shapps went on to say, ”There are an estimated 1.4m households who aspire to own a home but are unable to do so because of house prices and mortgage availability. There are hundreds of thousands of people in rented accommodation, or living with parents, who yearn to be first-time buyers. It is now true that the average age of the first-time buyer is 37. He said “The new Government would promote shared ownership schemes, and wanted to see more house building.” The government will give planning powers to local people. “We understand that the transition to a more open, transparent and democratic planning system is not entirely anxiety-free for many involved. But we know that there is no future in this centrally planned system which has so dramatically failed, delivering fewer homes now than during any peacetime year since 1924.”
At Tudor we believe the local housing market will remain strong in the medium to long term due to the continued investment in the areas infrastructure and the lack of land to build new homes for the increasing demand.
Rental
Certainly the demand for well priced and presented properties remains as strong as ever.
However, with the government’s announcement over possible changes in capital gains tax some landlords have taken the decision to bring forward the sale of their rental portfolio’s and avoid the risk in paying higher tax. This has been very limited in our experience and the majority of our investment clients are looking to expand their rental portfolios.
One note of caution should be sounded, a recent survey of 500 private landlords has shown that rental arrears have reached their highest level since the research began in 2006.The survey, by market research agency BDRC Continental, found that in the last 12 months, 34% of landlords have had tenants who fell into rental arrears. This shows the importance of dealing promptly and effectively with a potential problems and the need for experience in handling rent arrears. At Tudor we are happy to report that the small amounts of tenant arrears have not increased.
Auctions
Our auction in May proved very successful with all our available lots selling, maintaining our 100% sales record. More importantly for our vendors the prices obtained were either very close to or in excess of the estimated open market value. This confirms that our approach that realistic guide prices and reserves deliver the right investors to the auction sale. This in turn produces excellent results for anyone wanting to sell rental portfolios, land, commercial investments or freeholds.
Mortgage Market Update by Kit Thompson, Director, Amber Mortgage Solutions
There is some positive news so far this month, with a number of lenders reducing the cost of mortgage funding on fixed rate products, including Nationwide, Abbey, Alliance and Leicester. Nationwide has also shaved up to 96 basis points of some of their fixed rate products.
Platform are set to launch a new "couples" mortgage for joint borrowers, with preferential rates and income multiples, on the basis of joint mortgages historically performing better than single mortgages. Rates to be announced tomorrow, but are expected to be as low as 3.19% fixed, at 70% LTV.
In the secured loan market, NEMO have re launched second charge lending up to 85% LTV, an extremely positive sign that they believe property values can only be on the up. Coupled with this, they will now lend to self-employed up to 75% LTV (they formerly only considered employed applicants) and they also lowered the credit score on their 80% products, to allow more cases through.
The Mortgage Works (specialist intermediary lender of Nationwide) has also launched a new 'prime' mortgage range, available exclusively via mortgage brokers. TMW’s new prime range includes free valuation on purchases, capped trackers, early repayment charge free trackers, a range of cash-back
options and a lifetime variable rate product. Other highlights to the range include a two year early redemption charge free tracker from 2.99% up to 75% LTV, and a range of two, three, four, five and seven-year fixed rate mortgages from 2.59%.
Monday 7 June 2010
What exactly are covenants?
A covenant is a binding legal obligation that comes with ownership of a particular property. Generally imposed by the original owner, it applies to the property itself and is therefore automatically passed down from owner to owner with the deeds, each time the property changes hands.
Since they are essentially private arrangements between individuals, covenants are not policed by local planning authorities. Instead, they are enforceable through the courts by the granting of an injunction.
Basically, a covenant stipulates specific things that the property-owner either must or must not do. An example of a so-called positive covenant might be an obligation to maintain the boundaries. Examples of typical restrictive covenants, on the other hand, include not being a nuisance to your neighbours and not carrying on any trade or business from the property.
These days, many covenants are little more than historical curiosities, reflecting the concerns of the original owners - often the church - or a way of life that is long gone. An inspection of the original deeds to your own property, for example, may well reveal that you are not permitted to extract water from the land for public sale, or that you are banned from keeping a horse and cart on the premises!
Realistically, of course, there’s probably little if any chance that you’d ever fall foul of such restrictions. Nor would they be likely to cause any major legal complications when it comes to buying or selling. Not all covenants are quite so quaint, however. It is not uncommon for residential estates, for example, to have a range of covenants placed on them by the original developer. These are usually designed to protect the look and amenity of the estate as a whole – for example, by stipulating that all front gardens must be unfenced, or that the parking of caravans is not permitted. Such covenants can be enforced by any resident against any of the others - and they often are.
If you are in any doubt regarding covenants on your property, the best thing to do is check your original deeds and/or consult a solicitor.
For further information on buying selling or renting property go to :
www.trustintudor.co.uk
Since they are essentially private arrangements between individuals, covenants are not policed by local planning authorities. Instead, they are enforceable through the courts by the granting of an injunction.
Basically, a covenant stipulates specific things that the property-owner either must or must not do. An example of a so-called positive covenant might be an obligation to maintain the boundaries. Examples of typical restrictive covenants, on the other hand, include not being a nuisance to your neighbours and not carrying on any trade or business from the property.
These days, many covenants are little more than historical curiosities, reflecting the concerns of the original owners - often the church - or a way of life that is long gone. An inspection of the original deeds to your own property, for example, may well reveal that you are not permitted to extract water from the land for public sale, or that you are banned from keeping a horse and cart on the premises!
Realistically, of course, there’s probably little if any chance that you’d ever fall foul of such restrictions. Nor would they be likely to cause any major legal complications when it comes to buying or selling. Not all covenants are quite so quaint, however. It is not uncommon for residential estates, for example, to have a range of covenants placed on them by the original developer. These are usually designed to protect the look and amenity of the estate as a whole – for example, by stipulating that all front gardens must be unfenced, or that the parking of caravans is not permitted. Such covenants can be enforced by any resident against any of the others - and they often are.
If you are in any doubt regarding covenants on your property, the best thing to do is check your original deeds and/or consult a solicitor.
For further information on buying selling or renting property go to :
www.trustintudor.co.uk
Wednesday 2 June 2010
Who can I turn to if I have a complaint about an estate agent ?
Under the Consumer Estate Agents and Redress Act (2007), which came into force in October 2008, all practising estate agents are obliged to belong to a redress scheme approved by the Office of Fair Trading. Currently, there are two such schemes: the Surveyors Ombudsman Service – which, as its name suggests, was set up under the auspices of the Royal Institution of Chartered Surveyors specifically to deal with complaints against its own members – and The Property Ombudsman, formerly known as the Ombudsman for Estate Agents Scheme, which covers all other agents. Although you will need to check which of these two schemes the firm in question belongs to, both are designed to fulfil broadly the same function – ie. to provide sellers and buyers alike with access to a free, fair, and above all independent, complaints handling and redress system.
In practice, this means that if you have a dispute with your agent, which cannot be satisfactorily resolved through the firm’s own complaints handling procedures, then you can take the matter to the relevant Ombudsman, who will consider it and arrive at a judgement. Where appropriate, he can even award compensation – in the case of The Property Ombudsman, up to a figure of £25,000. What’s more, although the agent concerned is bound by the Ombudsman’s decision, the complainant isn’t – so, if you’re still not happy, you’re free to take the matter further; for example, to court.
Of course, despite the legal requirement, it’s always possible that there may still be one or two rogue agents out there who don’t belong to either of the two approved schemes. Fortunately, however, they’re reasonably easy to spot: they won’t display the relevant logos on their shop windows or stationery, and they will probably be rather evasive if you ask them about their membership. They may even try to convince you that they belong to another “similar” scheme! Whether or not you decide to report such firms to your local Trading Standards Office is up to you. But at least it means you have a clear choice – between those agents who abide by laws specifically designed to provide you with real peace of mind, and those that don’t!
In practice, this means that if you have a dispute with your agent, which cannot be satisfactorily resolved through the firm’s own complaints handling procedures, then you can take the matter to the relevant Ombudsman, who will consider it and arrive at a judgement. Where appropriate, he can even award compensation – in the case of The Property Ombudsman, up to a figure of £25,000. What’s more, although the agent concerned is bound by the Ombudsman’s decision, the complainant isn’t – so, if you’re still not happy, you’re free to take the matter further; for example, to court.
Of course, despite the legal requirement, it’s always possible that there may still be one or two rogue agents out there who don’t belong to either of the two approved schemes. Fortunately, however, they’re reasonably easy to spot: they won’t display the relevant logos on their shop windows or stationery, and they will probably be rather evasive if you ask them about their membership. They may even try to convince you that they belong to another “similar” scheme! Whether or not you decide to report such firms to your local Trading Standards Office is up to you. But at least it means you have a clear choice – between those agents who abide by laws specifically designed to provide you with real peace of mind, and those that don’t!
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