14/10/2007 by Damian.

What is good news for one person can be bad news for another. When it comes to property ownership in this country over the past decade, first-time buyers have repeatedly drawn the short straw (bad news). The housing boom that has had millions of older homeowners (good news) jumping all the way to the bank, has been nothing but bad news for first-time buyers.

Latest report received by Less2sell Estate Agent indicates that first-time buyers now need to save £25,600 (up £12,351 from 2001) to cover the costs of buying a home (deposit). And to consolidate the problem, some are borrowing more than six times their income in a desperate bid to get a foot onto the property ladder.

The good news is that the ramifications of five interest rate hikes, the US sub-prime mortgage crisis and the much-lamented global credit crunch start to hit home, there are signs that the housing market is cooling down.

What does this mean for first-time buyers? Well for a change the recent news from the housing market is potentially good news for first-time buyers.

Here are five reasons why first-time buyers should be celebrating:

• 1) Lower interest rates. Before all the banks got their greedy fingers burnt by bad debt the future looked bleak for first-time buyers. The base rate was widely expected to rise 0.25% by the end of the year. Now, the base rate is believed to have hit the peak of its current cycle and some predict it may even fall to 5.5% or lower in the next six months. This means fixed rates are coming down, and is great news for first-time buyers on tight budgets, who need the security that the set monthly payments of a fixed rate mortgage provide.
• 2) Greater supply of property. Buy to let investors have been profiting from the plight of first-time buyers, purchasing what was typically a ‘first-time buyers’ property at prices first-time buyers cannot afford, only to turn around and rent them out to first-time buyers. A recent report received by shows that sales of buy to let properties have risen by 44% this year to their highest level for two years, which means there should be more ‘first homes’ available to buy.
• 3) Less competition. Some mortgage lenders are tightening their buy to let mortgage criteria, reducing the amount investors can borrow from 90% of the property value to just 80%. That means landlords have to put down a bigger deposit, and cannot ‘gear up’ (borrow to buy another property) as easily. Speculative buyers are also most likely to be put off by the fear of a housing market crash.
• 4) Lower prices (possibly!). If and it is a big IF, house prices start to fall, I’m pretty sure that many buy-to-let investors may be keener than usual to sell up, and quick. Whether this leads to a fall in current prices or simply means that the pace of price rises will slow down, will depend to a large extent on the strength of demand and supply in your local area. However, as a general rule, I’d say first-time buyers have a greater potential to wield their power as chainless buyers this year.
• 5) More bargains. The increase in interest rates has already led to a record rise in repossessions by mortgage lenders, with RICS predicting there will be 124 repossessions a day in 2008. So you may be able to snap up a property at a cheap price, particularly if you buy at auction, where mortgage lenders tend to try to offload their repossessed homes.

First-time buyers should not get carried away though! Remember lenders are tightening their requirements and Less2sell advice that you have a healthy deposit to get the best deals (at least 10%).

If you would like free independent mortgage advice please click here.

Posted in First time buyers, General | Print | 1 Comment »

14/10/2007 by Damian.

A recent survey of estate agents by GE Money highlights that the right DIY project can add as much as £22,300 to the price tag of an average property.

But what are the most value-adding home improvements?

Less2sell estate agents believe that increasing the square footage of your property is likely to add the most value:

Top 3 Home Improvements Most Likely To Improve The Value Of A Home according to Halifax’s valuers

A similar survey from GE Money breaks down approximately how much money different types of home improvement could potentially add to the price of a property:

Estate Agents’ Top 10 DIY Projects, according to GE Money

Recommended Top 10 DIY projects	Average £s Added
1) Loft conversion	£22,300
2) Add an extension	£19,27 1
3) Build a conservatory	£11,90 4
4) New kitchen	£8,250
5) Add central heating	£6,147
6) New windows	£5,239
7) New bathroom	£5,155
Redecorate	£4,576
9) Resurface the driveway	£3,928
10) Add decking to the garden	£3,617

Of course, to some extent, the most value-adding improvements will depend on the property. Perhaps, rather than trying to say what is the most value-adding project, it can be just as helpful to look which home improvements can seriously detract from the desirability of

a property:

What Detracts Value From A Property, according to Less2sell Online Estate Agent.

What’s the solution?

If you’re planning a home improvement project this autumn, it’s a good idea to take professional advice. Check out homeimprovementadvice.co.uk for some top tips on how to plan small and big projects. And if you’re planning an extension, visit growyourhome.com to calculate an estimate of the costs.

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17/08/2007 by Damian.

 As Less2sell Online Estate Agents rightly predicted in our article on 25th June 2007 titled September start likely for Hips and three-bed homes, the government has today announced plans to extend the recent home information packs to 3 bedroom properties as of September 10th 2007.

For more  information on home information packs please visit Less2sell Online Estate Agents

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September start likely for Hips and three-bed homes

Home Information Packs Have Arrived

Hips causes chaos in rental market

Posted in HIP's | Print | No Comments »

16/08/2007 by Damian.

       Good news for homeowners with mortgages as this dramatic reduction in inflation has probably removed any potential further increases in interest rates for 2007.

After last months figures, specialists where 80-90% certain of another 0.25% in interest rates, however the chances of such an increase is now less than 50%.

CPI annual inflation – the Government’s target measure – was 1.9 per cent in July, down from 2.4 per cent in June, the largest single drop in inflation for 5 years.

The largest downward contribution came from food prices, as supermarkets led price cuts across a range of products including bread and cereals, meat, fish, fruit and vegetables. In addition, price increases last July on beef and shop bought milk were not repeated this year.

Another large downward contribution came from furniture and furnishings, with average prices falling over the month by more than 10 per cent, a record for July, following record increases for June last month. Widespread sale prices were available on a range of items in July including kitchen, bedroom and lounge furniture.

Other large contributions came from:

• Transport
• Housing and household services
• Recreation and culture

Related links

Beginners Guide to Predicting the Outlook for the Housing Market

Posted in UK Interest rates, General | Print | 1 Comment »

10/08/2007 by Damian.

     Many of you will have seen today that the National Housing Federation (NHF) expects house prices to rise 40% by 2012, with the average House price then breaching £300,000. With compounding, this means an average increase of roughly 8% per year. This is in line with the long-term average, which Halifax says is 8% since 1983.

Is the Market Going Up or will it Crash!’

All predictions should be taken on face value and you should always take head of who has commissioned and written the article.  The NHF has a vested interest and this could be why we have an upbeat report.

Most experts seem to think price rises will slow with the Council of Mortgage Lenders (CML) estimating that house prices will go up by just 7% in 2007 and only 2-3% in 2008.
Halifax recently revised up its prediction for this year from 4% to 6%. However, this is still lower than the average needed to hit NHF’s prediction.

Is the Market Going to Crash!

The truth is no-one knows take for example Hometrack.    Hometrack made no predictions this year after guessing a 1% rise for 2006. It was more like 10%.

As for the NHF’s prediction of a 40% increase over the next 5 years.  Take into consideration the track record of all other forecasters being so poor, it seems unlikely that its own prediction will come true either.

Like we reported in our earlier blog Beginners Guide to Predicting the Outlook for the Housing Market, predict the housing market at your peril!

Related Links

Beginners Guide to Predicting the Outlook for the Housing Market

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02/08/2007 by Damian.

The Bank of England have held the UK interest rate at 5.75% today, however most economists are predicting one final 0.25% rise before the end of the year.

Related Links

Historical Interest Rate Decisions

UK Interest Rate Rises by 0.25%

Posted in UK Interest rates | Print | 1 Comment »

01/08/2007 by Damian.

Showing your home is a vital element of the selling process. The latest figures from Less2sell Online Estate Agents  suggest that you can expect an average of twelve viewers through your door before you confirm a sale. However, inviting so many strangers into your home could place you in a vulnerable position.
 
 It is with this in mind that Less2sell,  member of the National Association of Estate Agents provides advice on how you can ensure your personal safety whilst selling your home.
 
 

1) Be sure to obtain all of the viewer’s details from the agent when arranging times and dates. Check you have the right name and contact details of each viewer, and ask the viewer to confirm all the details to you upon their arrival. If you are going to be alone in the house, it is probably a good idea to ask a friend or a neighbour to accompany you whilst you show your home.
 
2) Be friendly whilst conducting the viewings but don’t be lured into giving away too much personal information. Be cautious of conversations that inform people of your movements, for example holiday plans and work schedules, anything that informs the viewer of when the property is likely to be empty.
 
3) You might prefer for your agent to conduct the viewing on your behalf, make sure that the agent has accurate information regarding alarm codes and locations. Also check that the alarm location is not referred to in any of the sales literature about your property. If you do decide to leave keys with your agent it is a good idea to ask for a receipt and ensure that they will inform you of any viewings they will be conducting.
 
4) Using a sale board is a great way of marketing your property. However from time to time this does encourage people driving past to knock on the door and ask to view. If this happens refer them to your agent and arrange a time that suits you and that you are comfortable with. 

Related Links

Seven Simple Tips to Increase Your Chances of Selling Your Home Beginners Guide to Predicting the Outlook for the Housing MarketGuide to Choosing an Estate Agent

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01/08/2007 by Damian.

Finally after the embarassing last minute u-turn in May, HIP’s are here.  As of today, home owners puting their 4 bedroom or more properties on the market will have to get a HIP.

If you are thinking of selling your home or you require further information on HIP’s including what’s in a pack, pricing of HIP’s and how to conduct a D-I-Y HIP please visit our main website www.less2sell.co.uk - Less2sell Online Estate Agents

Related links

 Hips causes chaos in rental market

September start likely for Hips and three-bed homes

Posted in HIP's | Print | 1 Comment »

14/07/2007 by Damian.

Affordability issues have and still do contribute to the strong home rental conditions that we are seeing are the moment.

According to the latest figures released by the National Association of Estate Agents, demand for rental property continues.  The increase in Eastern European immigration, good employement conditions and the demand from those who cannot afford to buy ther first home has contributed to a thrivingrental market during Quarter 1 of 2007.

Despite the increase in in the number of buy-to-let investors and properties available, landlords have been very succesful in achieving the desired rental yields.

With affordability still a major issue for first time home buyers looking to get onto the property market, many professionals are being forced to stay in rented accomodation for longer and are now starting to pay higher premiums in order to enjoy better standards of living.

Chargeable rents rose in the first quarter of 2007, up an average 1.77%.  However, the interest rates rises in November 06 and January 07 are likely to have had an effect on the rental value as landlords increase their rent to cover additional outgoings.

Posted in First time buyers, General | Print | 1 Comment »