Property Real Esate | Mortgages | Garden & Interior Design

Property of Canary Wharf

2010-03-01T03:17:00.000-08:00

Canary Wharf in England, London and Tower Hamlets is one of the largest business development groups on the Isle of Dogs, which is centered on the in the London Dockland’s old West India Docks. One can find the three tallest buildings in UK in the traditional financial centre of Rivalling London, The Square Mile and Canary Wharf. The three tallest buildings are Citigroup Centre joint, HSBC Tower and the One Canada Square (commonly known as Canary Wharf or The Wharf Tower).

Canary Wharf- The History

Canary Wharf, which can be easily seen from the Tower Bridge Canary Wharf has been built on the site located near West India Docks, Isle of Dogs. It was one of the most busiest docks in the world from 1802 to 1980. There were nearly 50,000 people being employed in this area. Well, the name Canary Wharf property comes with related to the Canary Islands.

During the Second World War, the original warehouses in the docks area were badly damages due to heavy bombing. There was a decline witnessed in the port industry, although the city slowly started to recover during 1950s. There are some major reasons like lack of flexibility and containerization, which granted a less viable post to central London. The docks were finally closed by 1980.

Thousands of people were suffering from unemployment in Docklands and moreover, the city slowly started to ruin and finally, marked a major change in the economy of the entire world. There was a project carried out under the government of Margaret Thatcher during the year 1981 exclusively to revitalize the eight square miles in London Docks. Initially, only the small-scale industries in Canary Wharf were focused for the redevelopment.

New development ticks all the right boxes for first-time buyers

2008-11-14T15:12:00.000-08:00

NORTHPO1NT, a development by joint venture partners, Inspace Homes and Your Lifespace, is offering to young professional first time buyers, homes with an excellent pricing, situated in a desirable location in London.

The development offers a selection of contemporary studios, and one and two bedroom apartments. The 32 apartments are set within a five-storey building designed by Grafik Architecture. The open-plan apartments range in size from 380 sq ft for a studio apartment and rise to 586 sq ft for a two bedroom apartment.

The apartments at NORTHPO1NT is designed with light, spacious interiors and fixtures. The fully fitted kitchens from Pepper, complete with a full range of integrated appliances including an AEG stainless steel oven, hob and extractor hood. The Porcelanosa bathroom suites are of chrome fixtures and fittings - including an electric heated towel rail and ceramic wall and floor tiling. Most apartments are also equipped with heating of water through solar panels.

NORTHPO1NT on Essex Road is close to Islington and is located in the trendy and highly desirable N1 postcode, There are over 150 local restaurants, cafés, gastro pubs, bars and night clubs for dining or entertainment. For those who love to shop, there are several unique street markets including Chapel Market and Exmouth Market, as well as the many fashionable boutiques along nearby Upper Street. Chapel Market specialises in good value fruit and vegetable stalls as well as bargain household goods and clothes. Nearby Camden Passage is also a perfect place for antiques and books.

Canonbury Square Gardens with its baby vineyard and rose gardens is only minutes away for those who like relaxing with green spaces and slightly further away are the 29 acres of Highbury Fields with its lush parkland complete with recreational facilities including tennis courts and the recently refurbished Highbury Pool.

NORTHPO1NT's is in easy access into the City Bloomsbury property and the West End, limehouse property, through the Angel Underground station on the Northern line or Highbury and Islington station on the Victoria line. Canonbury and Essex Road railway stations are also located close by with services travelling westbound to Richmond and eastbound to Stratford from Canonbury station. Essex Road station provides services southbound to Moorgate and northeast towards Cambridge and Stevenage.

For those who might want a break from public transportation, all purchasers will automatically receive 12 months free membership to the car club scheme running at the development.

According to Sue Gresswell, Sales and Marketing Director at Inspace Homes, In this difficult economic climate, buying an apartment at NORTHPO1NT with its enviable location, high specification and good value prices, is an excellent opportunity particularly for first time buyers.

How to invest money in property

2008-09-19T06:43:00.001-07:00

A lot investors today think about the bad effects of today’s financial world crisis. If they want overcome its bad effects and not lose their money they must look for new places where they can invest their both their capitals and private money of their clients. Prices for share in the stock exchange have a tendency to fall in the past time. That is why many of them invest money in property.

This particular kind of investment is very effective especially when you invest money in >flipping foreclosures. At first you must carry out research and find the latest information in that sphere including the latest tendencies and prices. Of course after buying a house you can invest some money in redecoration and fixing some problems so that the house will look more attractive for potential buyers. This must be done to sell the house at a higher price and get profit. But you should not spend too much because your profit potential is very limited and you should always take it into account. But in most cases you money always pay off and because it is one of the most effective ways to invest money and safe of course.

IndusInd to re-enter personal loans

2008-08-12T06:31:00.000-07:00

The bank may launch personal loan products in October-December, said a senior official of the bank. “We are looking at launching the products in a selective way. Initially, the product, which is scheduled to be launched in the third quarter of the financial year, will only be sold to the bank’s existing clients,” the official said.

The private sector bank will, however, adopt a cautious approach in granting personal loans, a business characterised by high delinquencies.

The bank’s exposure to the personal loans segment is a mere Rs 200 million, against total outstanding loans worth Rs 130 billion.

The bank has about 2 million clients. The ticket size of the personal loan product will range from Rs 50,000 to Rs 300,000.

Buying a Homes In Hawaii

2008-08-11T13:32:00.001-07:00

Would it not be great to actual own a house in Hawaii? I think it would. So, I found two website that are actually a Hawaii real estate search. It use Maps so you will get a good idea of where the properties are located. Let me tell you the sites I am talking about are: HawaiiReal .com and MyHawaiiRealEstateonline .com

Among other things, these sites will show you listings for:

Oahu real estate

Honolulu Real Estate

And this is one powerful real estate search engine. Here you can narrow down your listings by the district that the house is located in, the type of property (Homes, Condos, or Land) as well as by the price range. And most results have pictures so that you can see what the property looks like.

Finding Valuable Information On Real Estate Websites

2008-08-04T01:45:00.000-07:00

Real estate websites list valuable resources for any investor. They can answer many questions that you may have, give you tips on finding great properties on the web, or let you know various financing options that you may have available to you.

Real estate websites can give you links to places that have property listings to help you make your investment decisions. They can point you in the right direction of free or cheap listing sites, but committing to these sites is your decision. When you join these listing sites, especially if you are asked for any credit card information, check to make sure they will not start to charge you after a certain number of days or weeks. Some sites will only give you a free trial period for a particular length of time.

Real estate websites can also help a rookie determine what type of homes may be best for home to invest in or when it may be time for them to move up to the next level.

Many of these real estate websites are run by those who have been in the business or have been educated on real estate themselves. So, the information you find on these sites can be valuable to many an investor.

London leads the way in house price falls

2008-07-28T00:13:00.000-07:00

London and southern England are bearing the brunt of falls in house prices, which have dropped for the 10th month in a row, according to a survey published today.

Average prices in England and Wales declined by 4.4 per cent over the past year, with a fall of 1.2 per cent in July which put prices back to levels last seen in October 2006, according to Hometrack, a housing data analysis company.

Savills, the property agent, predicted that prime London properties would fall by 15 per cent this year and by 25 per cent by the end of 2009, with the worst hit areas expected to be parts of West London such as Kensington, Notting Hill and Holland Park.

Hometrack said there had been a 20 per cent drop in demand over the past three months, although this had not meant a big increase in the supply of houses for sale.

Richard Donnell, director of research, said: "Transaction volumes have been the greatest casualty of the decline in demand over the last 12 months - the vast majority of homeowners simply do not need to move."

London prices slid 5.1 per cent over the past year, the survey found, bringing them back to the level they were at in February 2007.

Savills said reduced earnings and job security expectations among City buyers had curtailed the demand for property in prime central London. Values are now 9 per cent lower than their peak in the late summer of 2007.

There was rental value growth of 1.4 per cent in the second quarter, however, with big differences across prime central London.

The east of the city including Canary Wharf fell 4.4 per cent in the period, while growth occurred in St John's Wood, Hampstead and Regents Park, which are less dependent on financial tenants.

Beat the property slump: House prices

2008-06-17T08:10:00.000-07:00

# House prices

One final shove swings the front door wide open. I am hit by the foul smell of stale cat pee and the dank gloom of a house that looks untouched for decades. It is exactly what I've been looking for.

For years I've gorged on Britain's unhealthy diet of property shows. I've watched with envy as amateur investors stumble their way to tens of thousands of pounds in profit. Desperate to climb aboard, I once upped my offer on an east London wreck from the front line while reporting in Afghanistan. As the bombs rained down from the B52s the biggest blow was a distant London agent telling me it had gone to a higher bidder. His only apology was for the bad line, asking whether the "banging" in the background was at my end.

But now it's January 2008, and a friend has given me first refusal on an inherited, foul-smelling, ex-council house in Edgware, north London. Both Nationwide and Halifax predict a year of zero growth, but no falls. It's a very neat street and houses sold here for £285,000 last autumn. I borrow against my home and buy the sad wreck for £200,000.

I know the property market is slowing but figure that even in a static era, I will be able to add lots of value. The total refit should cost about £17,000. I will sell at £249,000 - just below the stamp duty threshold. I can already hear the property show voiceover: "Mark's made a cool £22,000 profit. Not bad for a first time investor."

I start work in mid-February. My mum pops by to inspect what I have risked my lovely home in Hackney for. The stench sends her running into the garden. As she recovers, a kindly neighbour ticks her off for going in without a mask and protective clothing. The house is notorious. Getting people in for quotes is impossible until I conquer the smell. On the internet I discover and order a "pee detector strobe" from America. Like a CSI agent I spend the hours of darkness waving the strobe over floorboards. It works, showing up the glowing yellow crystals. I rip the offending boards out. The smell is gone.

Apart from boiler, central heating and double-glazing, I'm doing all the work myself. It's daunting and depressing. Property shows love the contrasts of before and after. They do not show the weeks in between, with no heating, only the radio for company and a bucket for a loo. Who ever saw Sarah Beeny slopping out? Nothing goes to plan, walls aren't straight; pipes don't always lead where you think they do. The removal of a single old nail brings rubble tumbling down.

Telegraph writers win property awards

2008-06-17T07:21:00.000-07:00

Writer Caroline McGhie has been named National Newspaper Property Journalist of the Year.

McGhie, a regular contributor to the Sunday Telegraph's Home & Living section, also won the award for Property Scoop of 2007 for her feature 'The Real Cost of a Commute'.

Judges at the 2008 headlineproperty journalism awards also named London Property writer Sarah Lonsdale Environmental Property Journalist of the Year.

The ceremony took place at The Brewery in the City of London. The awards were among 15 categories deliberated by more than 40 judges.

MS Map and Esate Agents

2008-05-21T01:05:00.000-07:00

Invista sees 5-10 percent European property fall

2008-05-19T02:51:00.000-07:00

LONDON (Reuters) - Property funds firm Invista Real Estate says commercial property prices in mainland Europe will fall by an average 5-10 percent this year and probably by more in Madrid and Barcelona.

In an interview on Friday, Tony Smedley, who heads Invista's stable of continental European funds, said property valuations were unlikely to tumble on the mainland as much as they had done in the UK, but they had nonetheless begun to adjust downwards.

"My sense is that valuations have come off a bit but there haven't been the transactions to evidence that," Smedley said.

He said there was scope for commercial buildings such as offices, malls, and industrial warehouses to fall by 5-7 percent in Germany, regional France, Belgium and the Netherlands, by 8-10 percent in Paris, and by more than 10 percent in Spain.

Average commercial property valuations in the UK are already down almost 17 percent from their peak last summer but the extent of the post-credit crunch real estate correction in the rest of Europe is less clear.

Invista is majority owned by UK mortgage bank HBOS (HBOS.L: Quote, Profile, Research) and has 8.7 billion pounds in assets under management.

Smedley said about 1.5 billion euros (1.2 billion pounds) was invested in continental Europe, with two-thirds of that in France and around half in the Invista European Real Estate Trust (IERE.L: Quote, Profile, Research).

REFINANCING

He said the Trust was negotiating with several banks to bring forward the refinancing of a 460 million euro credit facility with HBOS-owned Bank of Scotland which was due to expire in December.

London hit by property slowdown

2008-04-09T12:02:00.001-07:00

Research from estate agency Knight Frank shows that the number of houses being sold in the capital is at its lowest level for over 10 years.

The agent said prime properties in Central London have been affected. Sales of expensive homes from January to March were down by 20% compared with last year’s figures.

In the same period, there were just 1,160 sales at above £1 million in London compared with 1,450 in the first quarter of 2007.

As a result, sellers are being forced to reduce their property price by hundreds of thousands of pounds.

In the first quarter of 2008, approximately 9,000 properties were sold in London. Last year, homes were being sold at the rate of 16,000 a month. Mouseprice.net, the property information website, said sales have been slower than in any period since 1995.

For example, a property in Paultons Square, Chelsea, has had a quarter of a million shaved off its original asking price of £3.5 million in an effort to find a buyer.

Miles Shipside of property website Rightmove said many sellers are trying to cash in on the equity they have made from the boom of the last 2 years. However, pricing your home on this basis is ignoring the worldwide financial turmoil, increased competition from other unsold properties and the challenge buyers now face in getting a mortgage, added Mr Shipside.

It’s human nature but in the current market sellers should price below their competition to avoid a larger price drop later in the year, said Mr Shipside.

According to Seema Shah of analysts Capital Economics, prices in the South-East and London fell by 0.7% in January and 0.5% in February.

The latest London View report from estate agents Cluttons said properties at the top end of the market are still selling quickly despite a cooling property market.

The report said high-end properties and those in desirable locations have, to date, been immune to the slowdown that is affecting the rest of the property market. These homes are selling quickly and they are going to best bids.

Mortgage squeeze: How is it affecting you?

2008-04-02T13:19:00.000-07:00

Mortgages are getting harder to come by. First Direct has become the first high-profile lender to close its doors to new customers.

The bank - one of the country's top 20 home loan providers - gave only five hours' notice that it was effectively closed to new business on Tuesday.

The move came as figures showed that more than 90 mortgage products a day have been scrapped over the past week as lenders try to hoard cash. At the end of March there were 5,785 products available to borrowers - there are now less than 5,320.

It is now also almost impossible to get a 100 per cent mortgage, with Scottish Widows wanting at least 5 per cent deposit for young professionals such as doctors and accountants - previously they were able to borrow 110 per cent of the property's value.

Experts warn that more than two-million home owners on variable interest rate deals could find that their mortgage bills increase if other lenders follow suit.

The hardest hit, however, are first-time buyers and the estimated three-million home owners who are due to refinance their mortgages over the next 18 months.

We want to know if you have been turned down for a mortgage or are finding it hard to get an affordable deal from lenders?

Sabban Property Investments launches unique internship program in partnership with Birmingham City University

2008-03-27T06:47:00.000-07:00

Sabban Property Investments (SPI) has announced the launch of a unique internship program in partnership with UK-based Birmingham City University (BCU), which will involve students in the construction of the Sabban Towers. Six international university students vying for a one-year paid internship in Qatar will put into practice the theory of construction and planning in a 12-day training program at the construction site, where they are expected to gain a broader understanding of the regional property development landscape. After an intensive course in the core areas of construction, real estate and planning development, the two most outstanding students will be awarded the coveted remunerated work placement and join the construction experts working on the project.

The leading Dubai and Qatar based developer invited students from BCU’s Property, Construction and Planning Department to submit their proposals on how they would add value to SPI as an organisation and comment on the booming real estate sector in Qatar, in addition to their study on the culture of the country and their views on sustainable construction and design. Following an intensive selection process, SPI selected the pool of winning students, which include Quantity Surveying majors Andreas Kounass and Imran Salam, and Planning and Development student Rosanna Sterry; in addition to Benedict Gannon, who is in his second year in Real Estate Management; Thomas Nicholls, a Building Surveying scholar; and Michaela Campbell Lynch, who is completing her degree in Architectural Technology.

“This work placement program, which we have undertaken through our partnership with Birmingham City University, is a part of SPI’s Corporate Social Responsibility policy to further our involvement in the development of the education sector by nurturing talent through experience,” said John Browne, MBE, Managing Director, SPI. “As an alumnus of BCU, I can attest to the exemplary academic training, which the selected students have been exposed to on campus, and our goal now is to match their theoretical knowledge with real life professional experience. Through this initiative, we are not only showing real interest in the students’ future but also, looking to the growth of SPI and the industry as a whole.”

First timers' stamp-duty up 82%

2008-03-13T07:40:00.002-07:00

The average stamp duty bill for first-time buyers has almost doubled over the last five years, says a report from mortgage lender Halifax.

The average bill in 2007 was £1,751 compared with £960 in 2002.

In the south-east, south-west and east of England almost all first-time buyers paid stamp duty, while in northern regions only 42% were liable, it said.

The Treasury pointed out that half of first-time buyers will pay no stamp duty this year.

The lowest, 1% tax band hits homes worth between £125,000 and £250,000.

'Raise thresholds'

Homes valued between £250,000 and £500,000 attract a 3% charge and properties worth more than that are taxed at 4%.

Although the government has raised the threshold at which buyers pay 1%, it has not kept pace with the surge in house prices.

"Stamp duty has again become an issue for first-time buyers because the stamp duty thresholds have not kept pace with house price inflation," said Martin Ellis, Halifax chief economist.

"We call on all political parties to raise the stamp duty thresholds to compensate for house price inflation over the past decade," he added.

But the government defended its record.

Mortgage fraudster banned by FSA

2008-03-13T07:40:00.001-07:00

A mortgage fraudster from East London has been banned by the main City regulator from anything to do with the financial services industry.

The Financial Services Authority (FSA) said Andrew Kiplimo was "not a fit and proper person in terms of honesty, integrity and reputation."

Kiplimo, who has disappeared from view, fed bogus mortgage applications to potential lenders.

The FSA said its action was part of a wider investigation of mortgage fraud.

Introduction fees

Kiplimo, who acted as a mortgage "introducer", was accused of making up the pay and employment details on mortgage applications, and also of using false accounts and tax

Surveyor gloom close to a record

2008-03-13T07:38:00.000-07:00

The number of UK surveyors reporting house price falls in February was close to the historic level of June 1990.

Cautious homeowners have caused housing stockpiles to rise to levels not seen for a decade, the Royal Institution of Chartered Surveyors (Rics) said.

Some 64.1% more surveyors reported a fall than a rise in house prices in February - up from 54.7% in January.

But the survey said Scotland was bucking the trend, with 25% more reporting price rises - up 18%.

Highs and lows

The survey showed the UK trend had continued for the seventh consecutive month and was close to the June 1990 low, when 64.5% more surveyors reported house price falls than increases.

But the picture in Scotland mirrored economic data coming out of the country, showing a rise in the balance of surveyors reporting price rises from 7% to 25%.

Across England and Wales, enquiries from would-be new buyers are still dropping fast and fell for the 15th month in a row, suggesting a continued slowdown in the market is likely in the coming months.

"Many would-be-buyers are either struggling to raise the necessary finance to precipitate a move or are exercising caution in light of current economic uncertainty," said Rics.

News in brief: House prices fall

2008-02-03T04:42:00.000-08:00

House prices have fallen for the third month in a row, dropping 0.1% in January according to Nationwide. Annual house-price inflation is down at 4.2%, the lowest rate for two years, and the average house price has dropped to £180,473 from £182,080 in December.

Dearer energy

Scottish Power has become the latest energy supplier to announce price rises. The group, which has 5.2m customers, said electricity prices will rise by an average of 14%, with gas prices up by 15%. The move follows rises at EDF, British Gas and Npower.

Footsie boosted by mining stocks

- The FTSE 100 closed up 160 points at 6,029, boosted by takeover talk in the mining sector centred on Rio Tinto.

Over the past 12 months the index has fallen by 2.8%

Over three years the index is up by 24.3%

Over five years the index has risen by 69%

FKI had the biggest gain, up 39% to 67p

Vanco fell the most, down 44% to 101p

Why we avoided the tie-in mortgage trap

2008-01-31T01:14:00.001-08:00

The scourge of all householders - mortgages that lock borrowers into high interest rates after a special deal has come to an end - is making an unwelcome comeback.

In recent years, these much-criticised loans had all but disappeared. But as lenders struggle to shore up profits in the wake of the credit crunch crisis, the deals are starting to emerge again to haunt homeowners.

A number of high-profile lenders have reintroduced the deals - known as loans with 'overhanging redemption penalties' - that offer low initial fixed-rates for a set period.

Borrowers are tied into paying a higher standard variable rate for years after that special rate has expired. And the only way they can extricate themselves is by paying a stiff redemption penalty.

Barclays-owned Woolwich and building societies Norwich and Peterborough and Market Harborough are among those offering these mortgage deals.

Market Harborough tempts borrowers with a rate of 2.85% fixed for two years, but they are then tied in for a further three years during which they must pay the lender's SVR - currently 7.55%.

This means a homeowner taking out a £100,000 interest-only mortgage would pay £237.50 a month for two years. But then, assuming the mortgage rate has not changed, monthly payments would nearly treble to £629.

A borrower trying to get out of the loan in years one to five would be required to pay a penalty equivalent to between four% and seven% of the outstanding mortgage sum borrowed.

The £100,000 borrower would pay a penalty of £7,000 in total in years one, two and three, falling to £5,000 in year four and £4,000 in year five.

Market Harborough says the loan appeals to many first-time buyers looking to keep down initial mortgage costs. It also says that borrowers are left in no doubt about the length of time that early redemption penalties apply.

But David Hollingworth, head of communications at mortgage broker London & Country Mortgages in Bath, Somerset, says: 'This deal is prehistoric in structure. We rarely, if ever, recommend mortgages with such costly tie-ins.

'Borrowers considering such loans must be aware of their inflexible nature and question their real value.'

How To Get The Right Flooring For Your House

2008-01-13T11:10:00.000-08:00

Everyone dreams of living in a beautiful house. Once you have the house, you're often bewildered with different decorating ideas. It's a good idea to start at the basics. Good flooring forms the foundation of any decorating theme. So it's vital to get the flooring right. One aspect is selecting the right materials.

The various rooms in your house may need a different kind of flooring. You have to pick the flooring depending on the use for the room, your lifestyle and your finances. Before you get floored by the number of choices available in the market, it's a good idea to know what youre looking for:

Your location

The location of your house is an important ingredient in your purchase decision. Do you live in a warm or cold climate? Do you have flooding or fires near your area? Studying these factors will help you make the right decision. Here's an example. Knowing that your house is situated in a moist area will give you a wide choice of flooring to choose from. You should probably pick material that will not rot away like stone, granite or marble. However, if you live in colder climes, then you can use a carpet or plain linoleum for the kitchen.

Your tastes

Your house should reflect your style and tastes. Do you like contemporary designs or a more traditional look? If your budget allows it, a hardwood flooring goes with almost any interior decorating idea. Bamboo floors or laminated floors are a cheaper option. Youll find it easy to clean a laminated floor as a good wipe will take care of it. You dont have to use oil or excessively scrub it.

Check the foundation

You need to check the foundation of the house before you buy the flooring. You will want your flooring to remain firm and stable and not cracked or chipped. Firstly, fix the foundation of any defects. Only then will the new flooring look good. If there is going to be quite a lot of family traffic you will want to ensure that it is resistant to wear and tear.

Mortgage approvals still falling

2008-01-06T05:17:00.001-08:00

The number of new mortgages being approved for home buying fell again in November, says the Bank of England.

Its latest figures show that just 83,000 new mortgages were approved for home buyers last month.

That was down from 89,000 in October and was the lowest monthly figure since the start of 2005.

The further drop suggests that the recent slowdown in the UK housing market is likely to continue well into the New Year.

"This is further evidence of a sharp downturn in activity in the housing market," said Simon Rubinsohn of the Royal Institution of Chartered Surveyors.

'Generally fall'

Although house prices in the UK ended 2007 roughly 5-8% higher than they started, prices started falling towards the end of the year under the impact of higher interest rates.

Soaring prices have also pushed the cost of homes out of reach of many potential first-time buyers.

As a result, many experts and commentators now expect that prices will fall generally this year or, at best, stay level over the course of the next 12 months.

Although the Bank of England recently cut interest rates, and is widely expected to do so again this year, the housing market is now feeling the effect of the increases in borrowing costs that the Bank imposed from the summer of 2006 onwards.

However, the Council of Mortgage Lenders (CML) warned that it was still unclear if lenders would have enough funds to meet the expected demand from borrowers this coming year.

"The credit crunch has resulted in funding difficulties for a number of mortgage lenders, reducing their capacity to lend," said the CML.

"[But] the softer tone to house prices in recent months and uncertainty over the future course of house prices is likely to deter the demand for house purchase.

"Indeed, this factor is probably already at work," it said.

Cautious lending

This week the Bank of England reported that the recent financial crisis in the banking system had led banks to be more cautious and cut back their lending, whether it be to home buyers, companies or people with credit cards.

Part of that process has seen a drop in the number of people cashing in on the increased value of their homes to borrow more money.

In November there were just 60,000 such loans secured on a property, the lowest number since the start of 2001, and exactly half the record number of 120,000 that were lent in October 2003.

This suggests that consumer spending generally will slow down this year as much of this borrowing, known as housing equity withdrawal, goes to subsidise people's general spending.

"Housing market activity is now slowing markedly in the face of stretched affordability as well as the tightening lending practices resulting from the credit crunch," said Howard Archer of Global Insight.

"This ongoing evidence that the housing market is currently slowing markedly maintains pressure for another interest rate cut sooner rather than later," he added.

First-time buyers 'at fresh low'

2007-12-23T15:07:00.000-08:00

The number of first-time home buyers in the UK has dropped to its lowest point since 1980 as house prices soar, mortgage lender Halifax says.

An estimated 300,000 first-time buyers entered the market in 2007, 15,000 fewer than a year earlier.

The average house was out of the reach of a typical first-time buyer in 96% of UK towns, Halifax found.

The average price paid by a first-time buyer for a property increased by 15% during this year to £175,093.

Priced out

The price has soared 82% over the past five years, it added.

"Rising property values have priced many potential first-time buyers out of the housing market," Martin Ellis, chief economist at Halifax.

"When they do enter the market, first-time buyers are now more likely to be in their 30s rather than their 20s and buy a flat rather than a terraced house."

Henley-on-Thames was the UK's least affordable town, with an average property price of £642,672 - more than 13 times the average income of first-time buyer households in the area.

The big council house sell-off

2007-11-19T03:00:00.000-08:00

Camden council has announced plans to sell off 500 of its existing rented properties, in order to pay an estimated £242 million repair bill for the rest of its housing stock because the Government is refusing to provide the cash. The news emerged as the Queen’s Speech in Parliament promised the building of millions more homes and an increase in council-house stock.

Under the headline Investing in Camden’s Homes, the council is advertising its intention to sell vacant homes to private buyers to raise money for the repairs. But tenants are opposed to the plan. Members of the Defend Council Housing campaign are now busy knocking on doors and getting people mobilised against it.

Liberal Democrat council leader Keith Moffitt said there was no option but to sell, as the Government would not give Camden the funds needed to bring council homes up to its own decency standards. It is estimated that £242 million will be required for this. The Government has made financial support conditional on the council privatising the management of its housing stock.

A spokesman for the Department for Communities and Local Government said: “We have not yet taken a view on Camden’s proposals. Our policy in general is to make it easier for councils to build homes, and we are expecting all areas to increase the number of social homes.”

Liberal Democrat housing spokesman Paul Holmes MP said: “This is the Government’s fault for refusing to give Camden the money it needs for repairs unless it privatises the management. The tenants are sensibly opposing this, and the Government is punishing them for not toeing the line.”

Surge in 100% mortgages means thousands risk negative equity

2007-10-31T02:54:00.000-07:00

Thousands of first-time buyers could find themselves in negative equity following a big increase in the number of 100% mortgages available, according to new research issued yesterday.

An estimated 33,000 first-time buyers borrowed the full value of their property, or in some cases more than it was worth, between January 2006 and August 2007, said the mortgage website mform.co.uk. Such deals are allowing people to get on to the housing ladder without having to raise a deposit.

But earlier this week, the body representing mortgage lenders warned that the housing market was about to stall, and some commentators believe this has already begun. A report from the website Hometrack, published on Monday, claimed house prices fell by 0.1% during October - the first fall for two years. There has also been a warning that home repossessions could rise by 50% next year.

Homebuyers who have recently taken out 100%-plus loans are particularly vulnerable to price falls, as they have no equity to cushion them if there is a drop in the value of their home. In some cases, even a small fall in house prices would leave them owing more on their mortgage than their home is worth.

Rising property prices have meant that people need to borrow even more money to get the property they want, and lenders have responded by dramatically increasing the number of 100% mortgages available, according to mform.co.uk

"In April this year, our research showed there were 92 different 100% mortgages to choose from, but by October 1, this had increased to 160," said Francis Ghiloni, the site's marketing and business development director. "If house prices fall, as some commentators predict, those homeowners with these mortgages are likely to encounter negative equity."

The high-street bank Abbey recently began trialling the "100% Plus Mortgage", which, in addition to allowing people to borrow the full value of their property, enables them to borrow up to a further £25,000, secured on their home. Abbey suggested the money might be used for "renovating your home, buying a new car or consolidating all your debts".

Property viewed 'safer than cash'

2007-10-21T04:08:00.000-07:00

A majority of British people believe buying property is now a safer place to put their money than saving with a bank or building society.

Research for the BBC Two series, The Truth About Property, found 53% of respondents believed owning property was safer than cash.

The poll took place in the aftermath of the Northern Rock crisis, the first run on a British bank in nearly 150 years.

The findings come despite mounting evidence of a slowing housing market.

Booming house prices in Inverurie

2007-10-21T04:07:00.000-07:00

Inverurie has the fastest-rising property prices in Scotland, according to new figures.

The Aberdeenshire town has joined Aberdeen and Edinburgh as the only places in Scotland where the average cost of a home is over £200,000.

The Bank of Scotland survey showed householders in Inverurie have seen their property value rise by 35%.

But the town's councillor warned that the housing boom also brings hidden costs to the community.

According to the bank's figures, average house prices across Scotland as a whole rose by 14% in the last year to just over £141,000, 3.5% above the UK average.

Bank of Scotland economists said the market in Inverurie is being driven by the high prices in Aberdeen which is creating a ripple effect to the rest of Aberdeenshire.

'Younger families'

But Councillor Richard Cowling, who represents Inverurie on the local authority, warned many people were being priced out of the market.

He said: "I think initially people will be delighted that they own expensive houses but I think it is going to cause a lot of grief and a lot of problems at the lower end of the scale and for those attempting to get on the property market.

"Currently we are seeing a large influx of younger families. It is having an impact on our education and our schools."

Concerns have also been raised that migrant workers who have increasingly found work in Inverurie will be priced out of the housing market.

Other services in the town are also being put under pressure, including its only GP practice, which is now the biggest in Scotland. From - BBC NEWS

Britain's deflating buy-to-let bubble

2007-10-13T03:26:00.000-07:00

It sounds too good to be true.

Take out a mortgage to buy a property and then, while the rent covers the mortgage repayments, the capital value of the property increases year on year.

For many years, that was the way it was, but now there are signs that the years of easy money may be coming to an end.

In 1996, when buy-to-let mortgages were first launched, only 20,000 were taken out. By June 2007 this figure had grown to 940,000 and the total amount borrowed to £108bn.

It has been phenomenally successful and one of the best performing investments around.

Many buy-to-let investors have made fortunes as house prices increased and mortgage rates remained low.

One such investor is Raj Shastri who has seen his initial £950 investment grow over the last five years into a portfolio worth £8m.

Slow-down in NI's property market

2007-10-13T03:24:00.000-07:00

Figures on mortgage lending obtained by the BBC show a significant decline in the number of home loans for house purchase.

According to the Council of Mortgage Lenders (CML), 16,500 mortgages were granted in Northern Ireland between January and August last year.

Three thousand fewer loans were made in the same period this year - a 19% drop.

In August, banks and building societies loaned £193m in mortgages to local homebuyers, down from £270m in the same month last year - a decline of 39%.

These figures do not include re-mortgaging, they cover first-time buyers and people moving from one house to another.

Sources in the banking industry say some of the small, independent mortgage brokers who entered the market during the house price boom may not survive the slow-down.

Two recent house price surveys - from the Halifax and Nationwide - showed that the market locally has cooled.

If the data is taken togther, it suggests that house prices in the last quarter stayed level.

It is understood that some developers have stopped building new homes in recent weeks, as house sales have tailed off.

Surveyors see house price falls

2007-10-11T03:32:00.000-07:00

House prices are continuing to turn down, says the Royal Institution of Chartered Surveyors (Rics).

Its latest survey says UK house prices in September generally fell again, with more of its members reporting a fall in prices locally than an increase.

It said enquiries from new buyers had fallen for the tenth month in a row.

Rics blamed the downward trend on a combination of factors, such as higher interest rates and lenders tightening their lending criteria.

"A major correction in the market seems unlikely while economic growth is above trend and employment conditions remain buoyant," said RICS spokesman Jeremy Leaf.

"The combination of rising interest rates, the introduction of home information packs (Hips) and volatility in the financial markets resulting in tightening of lending criteria, has certainly affected the confidence of buyers and sellers," he added.

Rics said that the downturn seems to be severest in East Anglia, and the West and East Midlands, though prices are still going up in Scotland and London.

Lawsuit: Layoffs at Foxtons broke law

2007-10-07T01:17:00.000-07:00

Two former Foxtons Inc. employees said the real estate company violated federal law when it didn't give them and their co-workers at least 60 days' notice before laying them off, according to a lawsuit filed Thursday in U.S. District Court.

Marco Cimmino of Neptune and Abram Covella of Pine Beach, who worked as home consultants, filed the lawsuit on behalf of a class of workers. They're seeking to recover lost wages and benefits, said attorneys David A. Krenkel and Lisa C. Krenkel.

West Long Branch-based Foxtons, a real estate broker that billed itself as a low-cost alternative, last week said it couldn't continue to operate in the faltering real estate market. It laid off 350 of its 380 employees and said it plans to file for bankruptcy.

The question: Did Foxtons violate the Worker Adjustment and Retraining Notification Act, which requires companies with 100 or more employees to give workers at least 60 days' notice before a mass layoff?

Foxtons could not be reached for comment. But the law has caveats. Employers don't need to give advance notice if they are the victim of a natural disaster or unforeseen business circumstances, or if they believed giving notice would have ruined their chances to obtain financing. More>>

London Design Festival

2007-09-20T01:30:00.000-07:00

The fifth London Design Festival (LDF) - a dizzying design jamboree of more than 200 happenings in shops, galleries, outdoor spaces and erstwhile empty buildings all over town - runs from 15 to 25 September, says Barbara Chandler

Head first to the Festival Hall on the South Bank, SE1, which is this year's "hub" or info point. Admire the sparkling chandeliers from festival sponsor Swarovski, then look for staff wearing red T-shirts with LDF logos - they will tailor a personal route. You can pick up a chunky free booklet with a full programme at any festival venue.

From Monday 17 to Wednesday 19, there are free energy-saving light bulbs to be had in Trafalgar Square. And reinforcing the eco-message will be designer Tom Dixon's huge chandelier, featuring 500 lights made from recycled plastic suspended from a slimline frame. These will be given away on Wednesday at 5pm.

Several key events run from Thursday 20 to Sunday 23 September:

Tent London is a huge amalgam of shows in the Old Truman Brewery (Brick Lane, entrance on Hanbury Street, E1), which will be crammed with edgy new talent, avant-garde international brands, vintage furnishings for sale, and more. Admission: £10 for adults; £5 for under-16s; free for under-sevens. www.tentlondon.co.uk

Designers Block is a sensational assembly of international alternative talent, as well as dramatic live glass-making demos that will use up all the empty bottles generated by the event. Sunday is family day. Out the back, in the spacious yard, will be cosy igloos made on site using p‰pier-machŽ made from discarded newspapers. The Nicholls & Clarke Buildings, 3-10 Shoreditch High Street, E1. Admission: £5 for adults; £3 for concessions. www.designersblock.org.uk

Both Liberty and Selfridges have their own impressive shows, and there are also idiosyncratic events in lots of London's smaller shops. For example, at Twentytwentyone in EC1, you can bid for a Fairtrade organic shopping bag decorated by one of 40 international star designers. www.twentytwentyone.com

RAISE STAMP DUTY THRESHOLD IN TODAY’S BUDGET

2007-09-06T05:30:00.000-07:00

Ahead of today’s budget, leading Central London Estates Agents Hurford Salvi Carr are backing Gordon Brown to take the brave decision to raise the threshold where 3% stamp duty kicks in, to properties with a starting value £300,000 rather than the current level of £250.000.

David Salvi, Director at Hurford Salvi Carr comments:” The Halifax have recently reported that an estimated 3.5 million homes across England and Wales are now valued above the £250,000 stamp duty threshold. These homes equal an amazing 19% of all residential properties for sale in the country, in Central London this is even more pronounced with perhaps 80% of London properties now being valued at £250,000 and above.

“As house prices have risen across the country in recent years, more and more people are finding they are being caught in the 3% stamp duty threshold as values of properties they wish to purchase rise above £250,000. This can be particularly difficult for young families who look to move out of smaller Clerkenwell properties as their families grow.”

“Hurford Salvi Carr feels that a rise in the 1% Stamp Duty threshold to £300,000 would to a certain extent offset the high borrowing costs that first time buyers and young families face as a result of the recent interest rate rise. This would also reflect the substantial increase in values of residental property across the UK since 1997”.

Waterside property: 'One of London's best secrets'

2007-08-31T02:46:00.000-07:00

You don't have to head out of the capital to enjoy the tranquility of waterside property.
By Ginetta Vedrickas
Published: 31 May 2006

With summer around the corner, many Londoners will indulge themselves with an annual fantasy; living by the coast. The city seems particularly stifling in warmer months but, as London's rivers and canals undergo huge regeneration, a scenic waterside location is within easy reach.

The Thames' success story is legendary but less talked about are London's many canals. Winkworth's Islington Property branch is selling a stunning mews house on Regent's Canal at Union Wharf, N1. Set within a private gated mews development, the house has three bedrooms, two bathrooms, a garage/gym, large conservatory plus a roof terrace with views over Regent's Canal and beyond. Priced at £850,000, agent Matt Chapple believes that the location will clinch a sale: "Demand for canal side property has never been higher. You only have to look at the regeneration and new development springing up throughout the city to see that it's now very desirable."

Three years ago the same property sold for £625,000, showing a healthy appreciation, but Chapple finds that buyers of waterside homes are less concerned with investment than with quality of life: "People in the city want space, peace and quiet and, importantly, the knowledge that no development is going to spring up directly in front of them. Buying canal side is one way of guaranteeing that." Properties such as this one also give buyers new access routes into the city, says Chapple who sees many joggers and cyclists regularly using its towpaths.

Much is heard about the eastern stretch of river, especially Docklands, but the western stretches are also attracting those looking for waterside homes.

Based mainly in Bermuda, Sally Ann Smith regularly travels to London and has just bought a pied à terre at the Pumphouse, a development of converted and new build homes from St James on the site of a Victorian pumping station in Hammersmith. Smith loves the design of her two bedroomed apartment but, having lived on an island, her new apartment's riverside location was crucial. "Living by water is very important to me," she says.

This stretch of river, between Chiswick and Hammersmith, is regarded as being particularly attractive and owners have private gated access to the Thames path through the gardens. The final homes, including seven penthouses, will be released this summer with prices starting from £245,000 for studios and £395,000 for two-bedroom apartments.

But bagging yourself a waterside home doesn't have to mean buying new build. Further west in Hanwell W7, agents Kinleigh Folkard & Hayward are selling Lock Cottage, which overlooks the Grand Union Canal and the River Brent. This two-bedroomed Grade II listed cottage has ishing rights and its own jetty. Priced at £525,000, the detached house is entered from the canal path and has many period features including cast iron fireplaces but also has a heated outdoor swimming pool, sauna and a kissing bench overlooking the canal.

Many other lesser-known rivers are becoming attractive for buyers wanting waterside locations. Management consultant Chris Pailthorpe, 56, bought a seventh floor apartment at the Iron Works, overlooking the River Lea, near its junction with Limehouse Cut.

"I was attracted to the space, light, water and wildlife," says Pailthorpe, whose 1,000sq ft apartment has an extensive living area with spectacular cantilevered glass wall. A balcony maximises the waterside views but Pailthorpe also enjoys the river's external benefits where he regularly walks: "Along the River Lea, Lea Navigation, Limehouse Cut and Limehouse Basin, it's like a refuge of tranquility and one of London's best secrets."

Tranquility and views may be driving the market but investment is key to some buyers' decisions. Agents Hurford Salvi Carr, based in central London Estate Agent and Docklands, has carried out research showing a hierarchy in Docklands waterside locations and showing that riverside is invariably more expensive than canal side. The firm also found that property values are in direct proportion to the width of the body of water that they overlook, with a Thames-side two-bedroom apartment in Docklands typically fetching up to £500,000 more than an equivalent property overlooking a canal.

Land director Jonathon Woodfield explains the draw: "In this part of London it's a big working river as opposed to somewhere like Twickenham. Here the tidal variations make it more interesting, as do all the big boats which pass through. Sitting right on the river or overlooking the big basins the views really are fantastic and it makes a big difference to buyers."

Hurford Salvi Carr is currently selling new development Shepherdess Walk N1, which fronts the Grand Union Canal. This contemporary scheme by developer Mount Anvil is due for completion in early 2009. Twenty-eight apartments, comprising a mixture of one-, two- and three-bedroom homes from 430sq ft to 915sq ft, are priced from £260,000 to £475,000. Hurford Salvi Carr is also selling Tequila Wharf, a contemporary scheme by Telford Homes, where many of the one- and two-bedroom apartments have west-facing views along the Regent's Canal or, from the higher levels, south-east to Canary Wharf, Wapping Property. One-bedroom apartments start from £225,000 and two-bedrooms from £285,000.

Many new riverside developments continue to come on line but the future market may be restricted to resales as riverside locations become increasingly scarce. St James Homes' Robin Rixon says: "There's a lot still going on in areas around Greenwich but in west London there are few sites left as developers have realised the river's potential." Rixon believes that St James's flagship riverside development Grosvenor Waterside stands apart from most. The mixed-use scheme will transform the historic Grosvenor Dock and is the only Dockside scheme in Zone 1. A series of stylish glass fronted apartment buildings rising from four to 11 storeys have been created around the dock basins, with prices starting at £395,000 for one bedrooms up to £2.25m for the penthouse. Some apartments have dock views only while others have river and dock.

River views are always higher on buyers' wish lists, says Rixon, "particularly as this is an incredibly attractive stretch:you have views of Chelsea Bridge and look east to the iconic Battersea Power station.". London Property Directory

House price inflation picks up

2007-08-21T01:13:00.000-07:00

LONDON (Reuters) - House price inflation in England and Wales picked up to an annual 12.8 percent in early August from 10.3 percent in early July, property website Rightmove said on Monday.
(Advertisement)

The figures suggest Britain's property market remains resilient in the face of five interest rates rises over the past year.

Rightmove said figures not adjusted for seasonal factors showed asking prices for property rose 0.6 percent on the month, double that seen in July. That took the average asking price to 241,474 pounds.

The monthly increase, however, was smaller than rises seen at the start of the year and Rightmove said it expected house price inflation to slow in the coming months.

The survey also showed asking Property prices in London fell on the month for the first time in a year.

LONDON AGENT WARNS LANDLORDS OF LIMITATIONS OF ASSURED SHORTHOLD TENANCIES

2007-08-16T01:48:00.000-07:00

Landlords should be aware of the limits of Assured Shorthold Tenancy (AST) as it is no longer applicable for many residential properties in London warns London estate agent Hurford Salvi Carr in its recently published half-yearly review. With entry level prices to the London residential property market continuing to increase and residential rents for many one and two bedroom rental properties Clerkenwell following the upward trend, many tenancy renewals are now exceeding the legal threshold.

AST agreements were introduced through the Housing Act 1988 to protect the interests of all landlords and tenants in the private rented sector and have been the backbone of the rental market. However, as AST only covers properties with an annual rental income of up to £25,000, an increasing number of properties across the capital no longer qualify under this legislation.

Hurford Salvi Carr Lettings Manager Kari Trajer believes this could have consequences for both Landlords and Tenants alike. “Since 1997, the vast majority of new tenancies let to individuals have been let on ASTs. This is creating a misnomer for Landlords based on the assumption that the ASTs are regarded as appropriate for all rental agreements without realising that their rental value exceeds the £481- per week (£25,000 per year) legal ceiling of the AST.“This crucially means the theoretical ‘fast track’ legal ability to recover possession for rent arrears no longer applies and can lead to serious delays if any rent arrear disputes arise with the tenants. “

The increased use of sealed bids for rented properties, which were reported by Hurford Salvi Carr earlier this year, has been just one result of the housing shortage and a contributing factor to the rising prices now exceeding the legal ceiling of AST.

In its recently published half yearly report, Hurford Salvi Carr outlines how the average weekly rental value for a two bedroom property has risen above £480- per week across the West End, City and Docklands property.

Hurford Salvi Carr Lettings Manager Kari Trajer continues: “At the present time, the Government is not scheduling amends to increase the legal ceiling of the AST, so Hurford Salvi Carr recommends Landlords and Tenants to be aware when letting or extending an existing tenancy of residential property particularly in the high value London market and the impact this will have on possible possession.

“I believe the legal ceiling of the AST will have to be raised sooner rather than later in order to protect Landlords and reduce the number of delays to secure vacant possession for rent arrears. Until then however, it is crucial that landlords understand the implications of Tenancy Agreements and make sure that the correct form of Tenant agreement is used by their agent.”

Property price fears fuel growth in rentals

2007-08-13T01:13:00.000-07:00

Demand for rental accommodation is outstripping supply at the fastest rate for six years as fears grow that further increases in interest rates may trigger a property price crash.

Letting agents say rental demand has exceeded all expectations this summer and the trend is widely expected to continue for the next year.

The Association for Residential Letting Agents (ARLA) says the level at which demand from tenants is outstripping supply from landlords is at its highest since they began conducting surveys about six years ago.

“Everyone has their own theories as to why this is,” said ARLA spokesman Malcolm Harrison. “Part of the reason is down to simple demographics because there are more single people looking for housing. But it is probably also to do with a fear of house prices softening.”

The UK housing market has remained buoyant despite a series of interest rate rises from the Bank of England but the number of properties available to rent has been reduced as buy-to-let investors reallocate assets away from property.

“Landlords are leaving the market and investing elsewhere because they feel it’s a good time to make the most of their capital,” said Tim Hyatt, head of UK lettings at Knight Frank estate agents.

“We have seen a 15 per cent reduction in instructions this year and this is indicative that people are feeling uncertain about where the house sales market is going.”

Fears of a slowdown or potential housing market crash have led more people to eschew purchasing a property in favour of renting.

Across the country letting agents say they have seen a huge rise in rental agreements this year with central London witnessing the greatest growth of activity.

Summer is traditionally a busy time for letting agents as graduates, relocated professionals and families moving to prime school catchment areas, vie for rental accommodation.

London property market still buoyant

2007-06-12T06:34:00.000-07:00

The cost of the average London home has risen to just under £350,000, according to the latest FT house price index published on Friday, well above the £200,415 average for the rest of the country, indicating the growing wedge between prices in the capital and the regions.

The FT index, which is based on Land Registry data for England and Wales, shows that, despite four interest rate rises since August 2006, the London property market is still hot. This is in contrast to the rest of the country where house price inflation is subdued.

The cost of an average London home increased by 1.2 per cent in April compared to the previous month, to £343,508. Outside London, there were only three regions in which an average property cost more than £200,000; these were the south-west, the south-east and east Anglia.

Peter Williams, chairman of Acadametrics, the consultancy which produces the FT index, said London property prices were increasingly out of step with the rest of the country. “It is the material gap between London and everywhere else that remains the most notable feature of the current market, with all that is implied for labour mobility, recruitment and retention,” he said.

House prices for England and Wales grew by 0.5 per cent in May, unchanged from April, putting the cost of the average home at £220,319. The annual rate of growth ticked up to 8.5 per cent from 8.4 per cent in April. In London, the annual rate of growth was much stronger - at 14 per cent in April from 13.8 per cent in March.