First, it’s worth bearing in mind that these bar charts, with their A-G ratings scored from 1 to 100, are only designed to give a quick at-a-glance summary of the full 6-page Energy Performance Certificate (EPC), which contains a lot more information, including detailed recommendations on how the ratings can be improved.
As for how useful they are, however, that is a rather complex issue. The official line, and the one supported by those at the greener end of the spectrum, is that anything which increases awareness of the energy efficiency and environmental impact of a property has got to be a good idea. You may be interested to know, for example, that the average home in Britain currently scores 46 out of a possible 100 (which equates to an E-rating) - so anything higher puts you on the side of the angels. And let’s face it, if you’re buying, and you have a choice between 2 more or less identical properties, - except that one costs £1000 to heat, and the other £500 – then this certainly ought to affect your purchase.
On the other hand, there is little evidence that this is actually happening in practice – at least, not yet. After all, there is a lot more to choosing a home than the cost of heating it. Very few buyers are going to reject a property that they like and can afford, simply because it has a “G” energy rating. Nor, in the real world, are there any guarantees that the proud new owners of such a property will immediately rush out and make the recommended improvements in order to reduce their carbon footprint.
There is also the argument that most of us already know all about the benefits of double glazing, cavity wall insulation and the like. Whether EPCs really add that much to the debate is therefore, at the very least, open to question.
All of this may of course may change in the future, as we all become (or are forced to become) more environmentally aware. But as things currently stand, it’s hard to argue that these ratings have much more than symbolic value.
For more information on buying selling renting or auctions go to : www.trustintudor.co.uk
Tuesday, 17 August 2010
Saturday, 14 August 2010
Demand more First Time Buyers mortgages campaign gathers pace
More and more people are joining the above campaign to get the Government to take note and change their thinking on how to revive the property market.
Everyone agrees first time buyers are needed for the housing market to revive and yet all the Governments attempts to get the banks lending have failed. Despite the banks stating they are trying, everyone involved in the property industry knows that the current mortgage deals offered are unrealistic. Either the interest rates are to high, the admin fees punitive or reference criteria is ridiculously hard.
Rather than the Government pouring in even more money into the banks in an attempt to get the FTB mortgage market going, they could circumvent them completely by re introducing local council mortgages.
There would be several advantages to this approach
1) Lending on sensible criteria if the mortgages were granted on sensible multiples of income, realistic levels of deposits and referencing criteria. Well placed first time buyers would be able to get on the property ladder without over inflating house prices. It would also mean mortgage decisions would be made away from commercial market pressures.
2) Long term fixed rate mortgages would help avoid the difficulties caused by the fluctuations in interest rates. These can result in problems with mortgage repayments and repossessions.
3) It could be introduced straight away no additional legislation would be needed as councils already have powers to do it. During the 1960’s local council mortgages were common place, for that to happen again the Government would need to relax the rules on how the council raised the money to lend by amending existing laws.
4) Reduce council housing benefit costs a more stable mortgage market would mean more first time buyers could provide housing for themselves. Less people would fall into difficulties and be made homeless or forced to rent
5) No added burden on council tax payers as the mortgage support would be serviced by the loan.
6) Banks would fall into line with mortgages being provided from another source outside their control the banks would soon change their attitude towards sensible lending.
Join the campaign by joining the group on Facebook or on LinkedIn together we can make the Government act
Everyone agrees first time buyers are needed for the housing market to revive and yet all the Governments attempts to get the banks lending have failed. Despite the banks stating they are trying, everyone involved in the property industry knows that the current mortgage deals offered are unrealistic. Either the interest rates are to high, the admin fees punitive or reference criteria is ridiculously hard.
Rather than the Government pouring in even more money into the banks in an attempt to get the FTB mortgage market going, they could circumvent them completely by re introducing local council mortgages.
There would be several advantages to this approach
1) Lending on sensible criteria if the mortgages were granted on sensible multiples of income, realistic levels of deposits and referencing criteria. Well placed first time buyers would be able to get on the property ladder without over inflating house prices. It would also mean mortgage decisions would be made away from commercial market pressures.
2) Long term fixed rate mortgages would help avoid the difficulties caused by the fluctuations in interest rates. These can result in problems with mortgage repayments and repossessions.
3) It could be introduced straight away no additional legislation would be needed as councils already have powers to do it. During the 1960’s local council mortgages were common place, for that to happen again the Government would need to relax the rules on how the council raised the money to lend by amending existing laws.
4) Reduce council housing benefit costs a more stable mortgage market would mean more first time buyers could provide housing for themselves. Less people would fall into difficulties and be made homeless or forced to rent
5) No added burden on council tax payers as the mortgage support would be serviced by the loan.
6) Banks would fall into line with mortgages being provided from another source outside their control the banks would soon change their attitude towards sensible lending.
Join the campaign by joining the group on Facebook or on LinkedIn together we can make the Government act
Saturday, 31 July 2010
Southend property market up date for July
Sales
The land registry figures released yesterday show that house prices around the UK barely moved. The percentage changed for June was just 0.1%, making the national average house price £166,072. The annual rate of change across the country is now 8.4%.
Southend has faired rather better with house prices rising slightly more in June by 0.6% making the annual increase 14.1% the average house price in Southend is now £157,438. We can break the market down further and see the average figures for each sector.
Detached £329,714 semi £206,509 Terrace £154,467 Flats £109,746.
If we compare the figures to the top of the market in June 2008 the average of all property was £170,339 and the different sectors were
Detached £356,733 Semi £223,431 Terrace £167,125 Flats £118,739
To the lowest point in June 2009 where the average of all was £137,966 and
Detached £288,934 Semi £180,967 Terrace £135,362 Flats £96,172
You can see clearly the U shape recovery in Southend house prices and how much we are off the top of the market we still are in all sectors.
It is also useful to look at the average property price for 2010 which shows the acceleration in prices between March and May.
January £151,254 February £151, 572 March £153,752 April £154,403 May £156,525 June £157,438
So what is likely to happen to prices over the next few months? At Tudor we have seen the market slow in activity during July the same as in June, with fewer buyers viewing properties. Those that have been out looking are making decisions quicker but are making offers substantially below the asking prices. I would not be surprised that when the next sets of figures are released from the land registry they show a fall in prices across the Southend area. Couple this with the possible rise in repossessions during the remainder of the year, my advice to anyone selling is to seriously consider any offer from a well placed buyer, even if it is below the figure you were hoping for. The reason being is that once you have an interested party in your property you are in a much stronger position to go and negotiate on your next purchase. It is important to remember it is the difference in the two prices that matters not what price you obtain for your sale.
With this approach and coupled with an offer in excess strategy to the market Tudor’s sellers have been able to sell, move and at a lower cost.
The Office for National Statistics have just up dated their figures which now show to June 2009, Southend has a population of 164,200, the East of England has 5,766,600residents and the total UK population is 51,809,700.
Rental
Recent findings have shown that there has been an increase in the number of tenants looking for properties to rent.
According to a report released in July, 16 per cent more tenants signed up to rent accommodation during the second quarter of 2010.
Research also found that June saw the greatest rise in the number of tenants looking to rent properties, with more than 18,000 people registering an interest in rental accommodation in one month alone.
It appears demand will keep on increasing and supply is lagging behind it, so the pressure on rents will go up over time.
This is good news for landlords as an increase in demand for properties is likely to benefit their rental incomes which will help off set any future rises in interest rates.
FindaProperty's research supports this after it revealed that rents increased by 2.3 per cent in June, taking the average rental price to £839 across the UK.
Mortgages
People who bought houses for sale in May paid the lowest average proportion of income on their mortgage repayments in 35 years, it has been found.
According to research from the Council of Mortgage Lenders (CML), the proportion of income spent on mortgage repayments in May was 9.5 per cent, while in April it was 9.6 per cent.
Though this drop is small, in comparison with May 2009's figure of 11.4 per cent, it has fallen considerably over the last year.
The Bank of England's Credit Conditions Survey, which suggested that mortgage lenders are restricting how much money they let people take out, will not affect the demand among people who want loans.
Alan Kirkman FNAEA
Director
Tudor Estates
29th July 2010
The land registry figures released yesterday show that house prices around the UK barely moved. The percentage changed for June was just 0.1%, making the national average house price £166,072. The annual rate of change across the country is now 8.4%.
Southend has faired rather better with house prices rising slightly more in June by 0.6% making the annual increase 14.1% the average house price in Southend is now £157,438. We can break the market down further and see the average figures for each sector.
Detached £329,714 semi £206,509 Terrace £154,467 Flats £109,746.
If we compare the figures to the top of the market in June 2008 the average of all property was £170,339 and the different sectors were
Detached £356,733 Semi £223,431 Terrace £167,125 Flats £118,739
To the lowest point in June 2009 where the average of all was £137,966 and
Detached £288,934 Semi £180,967 Terrace £135,362 Flats £96,172
You can see clearly the U shape recovery in Southend house prices and how much we are off the top of the market we still are in all sectors.
It is also useful to look at the average property price for 2010 which shows the acceleration in prices between March and May.
January £151,254 February £151, 572 March £153,752 April £154,403 May £156,525 June £157,438
So what is likely to happen to prices over the next few months? At Tudor we have seen the market slow in activity during July the same as in June, with fewer buyers viewing properties. Those that have been out looking are making decisions quicker but are making offers substantially below the asking prices. I would not be surprised that when the next sets of figures are released from the land registry they show a fall in prices across the Southend area. Couple this with the possible rise in repossessions during the remainder of the year, my advice to anyone selling is to seriously consider any offer from a well placed buyer, even if it is below the figure you were hoping for. The reason being is that once you have an interested party in your property you are in a much stronger position to go and negotiate on your next purchase. It is important to remember it is the difference in the two prices that matters not what price you obtain for your sale.
With this approach and coupled with an offer in excess strategy to the market Tudor’s sellers have been able to sell, move and at a lower cost.
The Office for National Statistics have just up dated their figures which now show to June 2009, Southend has a population of 164,200, the East of England has 5,766,600residents and the total UK population is 51,809,700.
Rental
Recent findings have shown that there has been an increase in the number of tenants looking for properties to rent.
According to a report released in July, 16 per cent more tenants signed up to rent accommodation during the second quarter of 2010.
Research also found that June saw the greatest rise in the number of tenants looking to rent properties, with more than 18,000 people registering an interest in rental accommodation in one month alone.
It appears demand will keep on increasing and supply is lagging behind it, so the pressure on rents will go up over time.
This is good news for landlords as an increase in demand for properties is likely to benefit their rental incomes which will help off set any future rises in interest rates.
FindaProperty's research supports this after it revealed that rents increased by 2.3 per cent in June, taking the average rental price to £839 across the UK.
Mortgages
People who bought houses for sale in May paid the lowest average proportion of income on their mortgage repayments in 35 years, it has been found.
According to research from the Council of Mortgage Lenders (CML), the proportion of income spent on mortgage repayments in May was 9.5 per cent, while in April it was 9.6 per cent.
Though this drop is small, in comparison with May 2009's figure of 11.4 per cent, it has fallen considerably over the last year.
The Bank of England's Credit Conditions Survey, which suggested that mortgage lenders are restricting how much money they let people take out, will not affect the demand among people who want loans.
Alan Kirkman FNAEA
Director
Tudor Estates
29th July 2010
Wednesday, 21 July 2010
We have found our ideal property but it seems to have a damp problem, should we avoid it ?
With the current increase in the amount of property on the market, relative to the number of buyers willing or able to take the plunge, it’s understandably tempting to walk away and look for something else.
On the other hand…if this property really is perfect for your needs, then I wouldn’t rule it out altogether. Obviously, I haven’t seen it for myself – and in any case, I’m no expert on these matters. Nevertheless, it sounds to me as though this could be nothing more than a simple condensation problem. This is actually quite common with older properties that have been comprehensively modernised, and ironically it’s often the double glazing that is to blame.
The thing you need to remember about older properties is that in their original state they were notoriously draughty. A combination of ill-fitting sash windows and doors, plus open fires in most rooms, ensured that these places basically leaked air like a sieve. This obviously made them difficult to heat – but it also meant that there was a plentiful supply of fresh air to stop the build-up of warm, moisture-laden air. Result: little or no condensation.
Contrast that with the situation today, when we try to make our homes as airtight as possible in order to minimise energy consumption and wastage. Which is not too bad in a cavity-walled property built to modern insulation standards (although even here, you can still get condensation and even mould on window frames in winter). In older, solid-walled properties, however, the combination of highly effective heating, cold outer walls and little or no natural ventilation is almost a guaranteed recipe for serious condensation problems – particularly in kitchens and bathrooms.
Hence, I suspect, the smell of damp in the property you recently viewed – in which case, it is easily cured by improving the ventilation. Obviously, you would need to get it thoroughly checked out by a surveyor, or even a damp proofing expert. Nevertheless, I’d be inclined to give the place the benefit of the doubt and make an offer. After all, even in times like these, ideal homes don’t turn up all that often!
On the other hand…if this property really is perfect for your needs, then I wouldn’t rule it out altogether. Obviously, I haven’t seen it for myself – and in any case, I’m no expert on these matters. Nevertheless, it sounds to me as though this could be nothing more than a simple condensation problem. This is actually quite common with older properties that have been comprehensively modernised, and ironically it’s often the double glazing that is to blame.
The thing you need to remember about older properties is that in their original state they were notoriously draughty. A combination of ill-fitting sash windows and doors, plus open fires in most rooms, ensured that these places basically leaked air like a sieve. This obviously made them difficult to heat – but it also meant that there was a plentiful supply of fresh air to stop the build-up of warm, moisture-laden air. Result: little or no condensation.
Contrast that with the situation today, when we try to make our homes as airtight as possible in order to minimise energy consumption and wastage. Which is not too bad in a cavity-walled property built to modern insulation standards (although even here, you can still get condensation and even mould on window frames in winter). In older, solid-walled properties, however, the combination of highly effective heating, cold outer walls and little or no natural ventilation is almost a guaranteed recipe for serious condensation problems – particularly in kitchens and bathrooms.
Hence, I suspect, the smell of damp in the property you recently viewed – in which case, it is easily cured by improving the ventilation. Obviously, you would need to get it thoroughly checked out by a surveyor, or even a damp proofing expert. Nevertheless, I’d be inclined to give the place the benefit of the doubt and make an offer. After all, even in times like these, ideal homes don’t turn up all that often!
Monday, 5 July 2010
Why would an estate agent suggest I get a credit card ?
I’m rather surprised that the agent didn’t explain – but there we are! Anyway, this is all about credit rating, which is part and parcel of the process of getting a mortgage. When you apply for any kind of loan – be it a mortgage or anything else – the lender will immediately check your credit score. These scores obviously take a variety of different factors into account – for example, whether your name appears on the electoral role or not. Nevertheless, strange as it may seem, the fact that you are careful with money, and have never had any sort of credit agreements or credit cards before, can actually count against you. Why? Well, basically because credit ratings are calculated by computer, rather than by a human being capable of making common sense judgements - and as far as the computer is concerned, a good credit record is invariably better than no record at all.
So, that’s why it’s not a bad idea to get a credit card, to use it regularly – for all your groceries, for example – and to pay it off in full each month. That way, you get a good credit history (even though you don’t actually need it!), the computer’s happy, and you end up with a higher credit rating – which in turn means that a lender will look even more favourably on your mortgage application. Not that I’m suggesting that you would necessarily have problems in any case. But, particularly at the moment, when first-time buyer mortgages especially can be quite hard to come by, it makes sense to ensure that you tick every conceivable box!
Finally, I should emphasise that this is only good advice for someone like you, who clearly takes a highly responsible attitude towards money matters. It most definitely doesn’t apply to everyone. The last thing any responsible estate agent or mortgage advisor would do is to suggest that everyone who comes through their door looking for a mortgage should start racking up credit card bills!
For more information on buying, selling or renting go to :
www.trustintudor.co.uk
So, that’s why it’s not a bad idea to get a credit card, to use it regularly – for all your groceries, for example – and to pay it off in full each month. That way, you get a good credit history (even though you don’t actually need it!), the computer’s happy, and you end up with a higher credit rating – which in turn means that a lender will look even more favourably on your mortgage application. Not that I’m suggesting that you would necessarily have problems in any case. But, particularly at the moment, when first-time buyer mortgages especially can be quite hard to come by, it makes sense to ensure that you tick every conceivable box!
Finally, I should emphasise that this is only good advice for someone like you, who clearly takes a highly responsible attitude towards money matters. It most definitely doesn’t apply to everyone. The last thing any responsible estate agent or mortgage advisor would do is to suggest that everyone who comes through their door looking for a mortgage should start racking up credit card bills!
For more information on buying, selling or renting go to :
www.trustintudor.co.uk
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