Buying, selling and letting - Friday, February 13, 2004

Buy-to-let market healthy

The latest buy-to-let index from lender Paragon Mortgages shows that landlords are beginning to pay more for their investment properties, after two months of taking advantage of slower market conditions to buy properties at prices below those paid by owner-occupiers. Despite the rise in prices, buying activity by landlords is holding steady at levels similar to the previous two months, reflecting landlords’ sustained confidence in the prospects for buy-to-let in 2004.
John Heron, managing director of Paragon Mortgages, comments: ‘After an excellent 2003, there has been no let-up in landlord activity in the New Year. At the same time, owner-occupiers are coming back into the housing market with renewed confidence, so that landlords are having to compete for property rather more than over the previous two months. The fact that investor landlords are continuing to purchase demonstrates that they are very positive about prospects for the current year. In our latest survey of landlords, they told us that they expect on average to grow their property portfolios by 8.8 per cent in 2004 – the equivalent of one additional property for every landlord surveyed.’
This month’s index shows house prices paid by landlords rising marginally, by 0.6 per cent, from £123,372 to £124,128. Landlord property values are now 11.6 per cent higher than 12 months ago, compared with the latest Halifax and Nationwide figures of 16.0 per cent and 14.3 per cent respectively.

John Heron says: ‘When the market is quiet landlords are often able to strike a better deal than the owner-occupier, but now that home buyers are starting to come back into the market prices are on the increase. However, the rise in prices paid by landlords since last month is smaller than for owner-occupiers – Halifax saw a 2.2 per cent rise in prices in its most recent house price index. The average price paid by landlords is currently just over £124,000, almost 15 per cent less than that paid by owner-occupiers (based on Halifax figures).
Average yields slipped again slightly, to 7.24 per cent, as a result of an increase in property values combined with an easing of rents received.
The lowest yielding regions in the country continue to be in more expensive areas in the south, in particular Greater London and the South East.
paragon-mortgages.co.uk

Ensuring that your home is protected from damp, fungus and insects can be costly but will save you money in the long run, says Anna Bowden

Damp and rot are commonly encountered problems in properties of all ages, and can occur for a variety of reasons. The most easily remedied occurrence is from a water leak – for example a burst water pipe or leaking guttering – but the solution is unfortunately not always that easy. Controlling damp is a job for the professionals, which, sadly, means forking out, but an ounce of prevention is worth a pound of cure. So check your home regularly for signs of leaking water and rot, as it could save you time and a lot of money in the long run.

Rising damp

This occurs when a damp proof course (damp course) is absent or has deteriorated, allowing water from the ground to seep up through the floor of the building.
The source of this is to be found in the soil, as water is raised through the brickwork by capillary action. Such water is not pure - nitrates and chlorides are brought up as salt, contaminating the brickwork, plaster and decorations. In turn these salts bring moisture from the atmosphere into the plaster.

Dry rot

Dry rot can affect properties of all ages and is caused by a high moisture level often found in areas suffering from rising damp. Severely affected timbers can be remedied without widespread damage to the structure. Dry rot is caused by serpula fungus, which is white and can leave wood a dry dust held together only by its strands. It is particularly dangerous as the fungus can travel across or through masonry to find a fresh wood supply. The first sign of dry rot is often a rust-coloured dust produced by spores. The treatment is similar to that for damp rot, though it can be much more difficult to eradicate.

Wet rot

Usually caused by a fungus from the coniophora puteana family, damp rot can appear white or brown and attacks the surface or interior of wood that comes into contact with moisture. Treatments involve drying out the wood and can include chemicals.

Woodworm

Woodworm is the most commonly used name for all wood-boring insects, including the common furniture beetle, the death watch beetle and the house longhorn beetle. The common furniture beetle, usually brought into the house with old furniture and packing cases, attacks the sapwood of softwood timber. The death watch beetle mainly occupies old buildings with a history of decay. Roof timbers are particularly susceptible. The house longhorn beetle is located in the south of England, mainly north west Surrey. As it also attacks the sapwood of softwood timber, differential identification is essential to treatment.

Penetrating damp

This occurs when water works its way through an exterior wall or roof, and is more common in older homes where walls are solid. The symptoms of penetrating damp are usually seen only in wet weather, and it is generally easy to pinpoint the source of the problem.

Areas to watch

Damp proof course

Sometimes referred to as a damp course or dpc, this is a layer of waterproof material like polyurethane at the base of a building. It acts as a barrier to water seeping up from ground level and if missing or damaged can leave a building at risk

Pointing

Mortar or cement between bricks is sometimes referred to as pointing. Damaged or missing mortar can allow water to seep into the brickwork

Flashing

A strip, usually lead or zinc, which seals the junction of roof sections. Cracks or damage to the flashing can allow water into a building

With many first-timers put off by high prices, what can be done to help? Andrew Frankish, operations director of Mortgage Talk, examines the options.

A lot has been said recently about the plight of the first-time buyer. There are plenty of statistics available to demonstrate that the first-time buyer market is at crisis point, but have we left things too late? Is there a danger that first-time buyers will disappear completely? And, if so, what are the implications?

This has been a recognised problem for eighteen months. The age of first-time buyers has been gradually increasing as their deposit requirements have spiralled out of all relation to the rate of inflation over the last few years.
Gordon Brown, in his April 2003 budget, indicated that something must be done to ease the plight of the first-time buyer but as yet the government has singularly failed to act. Of course, the first-time buyer problem is compounded by the UK’s unique economic circumstances. Despite interest rates remaining very low we really do have a two-stage economy; manufacturing is very much in the doldrums, while confidence in the housing market is strong. The latter is almost self-perpetuating and is mainly fuelled by low interest rates, which continue to encourage relatively high levels of borrowings among second- and third-time buyers and also place higher-priced properties within reach of more people. Supply is squeezed, which in turn further pushes prices up.

If we examine the situation logically, someone who bought their first house, say, ten years ago is in an enviable position. The property market at that time was weak and interest rates were significantly higher than today's levels. What this translates to is the fact that this typical buyer will, by now, have some substantial equity built into their house. As such, they will be able to move to a larger property without needing the size of mortgage that the average first-time buyer would need just to jump on the property bandwagon. However, this doesn’t benefit current first-time buyers, who have seen their buying power severely eroded by successive hikes in property values. Recently, Paragon published the results of a survey that showed that only 10.5 per cent of its applicants were first-time buyers in 2003, versus 10.8 per cent in 2002. Moreover, buy-to-let applicants comprised 11 per cent of borrowers in 2003 as opposed to only nine per cent the previous year.
And figures from the Council for Mortgage Lenders paint an even more worrying picture. For the industry as a whole, first-time buyer mortgages now only make up 30 per cent of total cases, versus a long-term trend of 45 per cent over the last decade.

Inevitably, this situation causes problems in the marketplace. It distorts house prices and alienates a whole class of today's young people, who simply feel priced out of the housing market. Given that many first-time buyers struggle to save a sizeable deposit, they have to borrow a large proportion of the purchase price of their first property which, taking recent price rises into account, means they will find it difficult to make ends meet, especially if interest rates rise as has been predicted.
In this climate a property market novice will be forgiven for feeling like the ugly sister. But what can be done to help first-time buyers make that move?

Help yourself

One way to get onto the ladder is to buy with friends. This is an idea that newly earning workers have used for many years. But with prices rising so steeply, this is a concept that more people are taking up later on in their careers. A couple of caveats here, though.
When friends – as distinct from couples and partners – decide to co-own, it is always wise for them to do so as tenants in common. This means that each party owns a pre-agreed percentage of the property, and this cannot be changed without the express consent of the other co-owners. It also means that more than two people can share ownership of the house or flat.
The converse is to own the property as joint tenants, which is the usual way in which spouses or long-term cohabitants possess property. The problem here for friends is that the split of ownership is not exactly distinct and, if one friend should pass away, his or her share automatically reverts to the survivor. Fine if you're married, but not ideal for work colleagues.

Another idea is to rent out rooms to friends or colleagues to help pay the mortgage. But make sure that you provide them with a suitable agreement that simply offers them a licence to occupy on a non-exclusive basis. The last thing you want is for a lodger to claim rights over your property on the basis that they have made contribution to the maintenance, repair and upkeep of the property.

Government policy

The National Association of Estate Agents recently called for the introduction of a fairer system by suggesting that stamp duty should be graduated. This certainly bears thinking about, with the £60,000 threshold not having been indexed for over ten years and now completely out of date. A decade ago only a third of properties were subject to stamp duty; now it is 95 percent. If the Chancellor wants to maintain his budget commitment to 70 per cent home ownership in this country, the Government needs to act to make starter homes more affordable.

Ideally, stamp duty should be abolished for first-time buyers to help them to gain a foothold on the home buying ladder, as well as supporting the housing market at the bottom. Unless we have a buoyant supply of first-time buyers it is unlikely that we will be able to sustain a strong housing market well into the future, regardless of what happens to interest rates. After all, what is the point of the Government claiming to encourage first-time buyers without offering them any genuine incentives?
Statistics from Cicero Consulting state that 65 per cent of those surveyed argue that the Government should do more to help first-time buyers, with 89 per cent agreeing that it is ‘very difficult’ for first-time buyers to get onto the property ladder. However, lenders are united in their reluctance to be seen to be encouraging unaffordable lending and to avoid a repeat of the all too recent self-certification scandal.

Perhaps more innovative schemes are needed, such as a return to Mortgage Interest Relief at Source (MIRAS) for first-time buyers. Or perhaps offering new borrowers the chance to take the first five or so years of their mortgage on an interest-only basis. Another alternative might be to allow first-time buyers to borrow over an initial forty year term, which can be recalculated to reduce the length of borrowing later on.
The truth is that, whatever the industry or Government comes up with, something has to be done reasonably quickly or the dearth of first-time buyers will have serious consequences for the housing market as a whole.

Parents

Other ideas floated by the press and other commentators include the concept of parental guarantors. Indeed, a recent poll by the over-fifties website fiftyconnect suggests that 63 per cent of its members intend to assist their children to buy their first home. And some lenders have even launched products that are designed to assist with this desire to help children onto the property ladder.
For example, the Bank of Ireland has just unveiled 1start, a so-called combi mortgage that takes an aggregate of the net available income of both the parent and child to increase the amount that can be borrowed. This is genuinely a positive step which, as well as offering a higher available amount of net borrowing, provides class-leading income multiples of four times parental income plus four times the child’s salary.

Lenders

One option might be to use more US-style longer term fixed rates, allowing borrowers to increase their income multiple calculations up to maybe five or six times salary, on the basis that what is affordable now will be even more affordable in the future.

Purchasers need professional guidance with the legal aspect of buying. Solicitor Pedro Emmanuel examines the process of finding the right conveyancing professional

For most people buying a house is one of the most important decisions they will ever make. However, unknown to a lot of people, the choice of their conveyancer is equally – if not more – important. A conveyancer is a lawyer who specialises in handling the legal formalities of the sale or purchase of a property. The conveyancer may be either a solicitor or a licensed conveyancer and will usually act for you and your lender. The role of the conveyancer is not only crucial to the success of the transaction but could determine whether or not you end up buying a liability.

What does a conveyancer do?

In a purchase the conveyancer obtains information about the property, checks that the seller has good title and then agrees the terms of the contract or lease for the purchase with the seller’s conveyancer. Furthermore, the conveyancer makes pre-completion enquiries including all the searches – usually environmental, water and local authority searches.
When satisfied with the terms of the mortgage offer and that the title is good, the conveyancer exchanges contracts on behalf of the purchaser, then obtains the mortgage advance from the lender and any balance, which the purchaser needs to provide. At completion (which is the day you move into your new home) the conveyancer pays for the house and registers the purchaser’s ownership and the lender’s charge at the Land Registry.

What should you consider in choosing a conveyancer?

The rule is not to choose a conveyancer simply because their fees appear low. There may be hidden extras. Even where the fees are really low, there are other equally essential matters to take into consideration. For instance, is the firm regulated by their relevant supervisory bodies? (The Law Society regulates solicitors while the Council of Licensed Conveyancers regulates licensed conveyancers). Regulation will usually ensure that the conveyancer has an indemnity insurance policy in place, just in case things go wrong.
You should also find out how experienced they are, how fast they can move and whether or not they provide regular updates. You may also want to know if they offer a personal service or whether they are a ‘conveyancing factory’. Location may also be important if for any reason you need to visit their offices.
By all means do look around and compare quotes from different conveyancers. But have a global picture when deciding which conveyancer to instruct.

If you’ve only ever been a first-time buyer, the jump to the next level of property ownership may be surprisingly complicated. So where do you start? Alex Hammond of Your Mortgage magazine investigates.

If you found buying your first home a confusing and exhausting experience, you should probably take a seat. Because there’s something you need to know: next time it might be even worse.
The major hurdle you faced first time around was probably finding the deposit. Once you’ve done this, with no chain to restrict your movements, the process can be straightforward. But when you have your own place to sell before you can move, you have to rely on a number of external forces that could easily thrown your own plans into jeopardy.

The real story

Iain Collings, an advertising manager, and Julie Shuttle, an office manager, both 29, bought their first property – a one-bedroom flat in Highbury, north London – in spring 2002. After a year and a half in the property they decided it was time to move on.
Iain says: ‘basically, we needed more space. We’d had enough of having nowhere to hang our laundry and no room for when our friends came over. When our mates stayed for the night they had to kip on the floor.’
Although Iain and Julie wanted a bigger flat, they liked the area and were reluctant to leave. Iain continues: ‘We’re looking at somewhere else in Islington, which is just up the road. We like living round there and sticking to the same area will mean little disruption to our lives. We’ve found a two-bedroom garden flat and hope to move in mid-March.’
But the process hasn’t been simple, as Iain explains. ‘Our original plan was to first sell our flat, then stay with friends while we arranged our mortgage and looked for a new home. We thought this would put us in a strong position for buying as we would again effectively be first-time buyers without a chain.
‘However, we realised that it was worth looking at properties even while we were still trying to sell our place, because this could give us a better idea of the size of offers on our flat we could afford to consider.’

Back-up plan

By moving their goals Iain and Julie did find a flat to buy, and sold their own home simultaneously. Everything seemed to be running smoothly, but then the purchase on their new property fell through.
Iain says, ‘We got through to the stage of having a survey done on the flat, which exposed some major underpinning issues. Basically, we couldn’t be sure that it wasn’t going to sink into the ground. The debate over this lasted for about three to four weeks and during this time we decided we needed to look elsewhere as a back-up plan.’
The two-bedroom flat that Iain and Julie will move into in March is the back-up plan. They found it quickly but the delay has meant that they have had to move out of their old flat and stay with friends. So does Iain think they chose to sell their flat, arrange their mortgage and buy a new home in the correct order?

‘There’s probably a lot of luck involved in how the process works. If we’d chosen to go ahead and sell our flat before buying we would have had to stay with friends. We tried to do the two simultaneously  - and as it turns out we’re doing that anyway.
‘The whole process was definitely more complicated than being a first-time buyer, which in hindsight was fairly straightforward. You potentially have to overcome a number of disappointments and extra costs. We paid £500 for a homebuyer survey on a flat we didn’t even move to. The process seems longer than the first time around. Perhaps I didn’t notice it as a first-time buyer because I was inexperienced, but it’s very frustrating that the legal work takes so long. You just want to phone someone and tell them to make a call or send the papers right then and there. It shouldn’t take long but it does.’
And what tips does Iain have for other first-time sellers?
‘Tell yourself that it will be hard work, it will be difficult and there will be disappointments. From our experience you should also make sure you have a back-up plan in case the sale of your property or purchase of another falls through, and allocated time to deal with any problems.’

Finance first

Paul Fincham from Halifax says, ‘Whether you are buying for the first time or moving home, the biggest factor you need to consider is the finance. So the first thing to do would be to work out what you can afford. Have a look at the deals available and get a decision in principle. Then start your house hunting.
‘When you have found somewhere, make an offer. If this is accepted apply for a mortgage and arrange the survey and conveyancing. When this is completed and your mortgage arrives you are ready to exchange contracts to complete the deal. Then it’s all yours. In theory the process is simple,’ he concludes. ‘But be prepared for any problems you may encounter.’
You can’t predict potential hitches when you’re moving but you can be ready for them with a contingency plan. Don’t assume it’s a done deal until you have completed on both your sale and your purchase. You’ll soon be able to relax in your new home – but until then you have to keep on juggling those tasks.

London new homes top £300,000

According to figures released today by SmartNewHomes.com, the new homes market finished last year on a high as both demand and price increased throughout 2003. The index tracks the location and price homebuyers are willing to pay for properties searched for on smartnewhomes.com; December’s figures show that buyers were willing to pay an average of £224,554 for a property, up by 1.3 per cent on November and an increase of 8.5 per cent compared to the previous year.

The price homebuyers are willing to pay for a property in London reached £300,423 – its highest point to date. Apartments proved the most popular property type, with 46 per cent of searches compared to 39 per cent for detached houses, a reversal of the figures from last year when houses were a more popular choice. Other property types remained steady although the price of penthouses rocketed further, up by 4.5 per cent since November to £329,863.
smartnewhomes.com

Homebuyers advised to do their homework

The National Association of Estate Agents (NAEA) is emphasising the importance of researching every aspect of a particular property before committing to a purchase. Issues such as cost, noise, transport links and local schools can affect the value and suitability of a particular home but are often not considered until the purchaser actually moves in, by which time it is too late.

Peter Bolton King, chief executive of the NAEA, comments: ‘It is always advisable for homebuyers to do as much research as possible before buying a property, especially if they are moving into a new area with which they are not familiar. In particular there are some specific issues, which the public might not normally consider.’ These include running costs, such as council tax, parking permits and stamp duty; transport links; noise pollution (is the house is in a flight path?); and schools.

The NAEA advises people to always undertake surveys with properties as defects will often not be apparent. Similarly, an environmental survey is advised to highlight any problems with the area, such as risk of flooding. Your solicitor will be able to organise both of these for you.
naea.co.uk

Christina Jordan of Your Mortgage magazine explains how to take a break from our mortgage repayments.

Imagine receiving a letter from your mortgage company telling you not to bother paying your instalment this month if you are a bit short. It seems fantastic but not very likely.
However, if you had a flexible mortgage you might be able to skip a month without even telling your lender. This is because flexible mortgages allow you to take more control over how you repay your home loan.
Flexible mortgages have been in the UK for about ten years, but have become hugely popular in recent years. Most major mortgage lenders offer flexibility in their mortgage range. So what exactly is a flexible mortgage and, more importantly, how can it allow you to take a break from your repayments?

Back to basics

A flexible mortgage is not as restrictive as a traditional home loan. It includes features that allow you to control your own finances. For example, if you have extra money one month you can overpay on your mortgage; that is pay more than your agreed repayments.
By doing this you will reduce your balance and, therefore, the interest you are charged on your debt. Over the term of your mortgage the savings made by overpaying can add up to thousands of pounds. And when you overpay you create a buffer that can be invaluable if you ever need a break from your repayments.

A payment holiday is where you don’t pay your mortgage for a period. This can be for one month or six months, depending on your finances and the criteria of your lender.
Most lenders will only allow you to take a payment holiday when you have already made overpayments. So, for example, if you intend to skip two months of payments and that amounts to £1,200, you must have overpaid more than £1,200 before you do.
All of Halifax’s mortgages offer flexible features, and borrowers are able to take payment holidays if they meet certain criteria. Spokesperson Paul Fincham explains, ‘Borrowers need to have had their mortgage for six months before they take a payment holiday, and they must have overpaid to the amount they intend to miss. This ensures that they remain on track to pay off their mortgage within the term.’

Benefits

A payment holiday could help you out in many situations. For example, if your finances are stretched after Christmas, you could skip a month on your mortgage repayments in order to pay off credit card bills.
Or perhaps you want to start a family and would appreciate a gap in repayments during the first months after the child is born. Or maybe you want to go travelling the world and you simply don’t want to pay your mortgage while you are away.
Whatever the reason, a payment holiday can be a welcome break from your monthly payments. It’s your mortgage, so why not take more control over how you repay it?

Would you pay over the odds for a pair of trousers? Of course not. So why pay more than you need for your mortgage? Anna Bowden explains the ins and outs of remortgaging

Home owners in the UK are paying too much for their mortgages, according to Which? – to the tune of £2.2 billion a year. This is mainly because of inertia, says the report; most of us just can’t be bothered changing to a better deal.

If you are currently paying your lender's variable rate then you are probably paying over the odds for your mortgage. There are hundreds of deals available and interest rates are at an all time low, so why stick with your existing lender if you could do better elsewhere? Go out into the marketplace, shop around and find a deal that will reduce your monthly payments and thus save you a fortune over the term of your mortgage.
Remortgaging can also be used as a way of releasing some of the equity that has built up in your property's value, although there are certain caveats despite the fact that rates are so low: borrowing through your mortgage may be much cheaper than taking out a personal loan, but the debt is secured on your property and if you can’t keep up with the payments you could risk losing your home.

Add it up

Remortgaging is certainly more straightforward than it used to be, but borrowers shouldn’t rush into anything. The most important thing is to consider any costs involved. There may be redemption penalty clauses in your existing mortgage and/or in the next one, making you pay for leaving your lender or making you stay with the new lender after the special rate has expired. Redemption penalties do tend to be attached to fixed-rate and discount deals and are often only applied only during the special offer period, but your existing deal may still have overhanging penalties and it could cost you to leave the lender even if you are paying its standard variable rate (SVR).
Other costs could include insurance, a valuation and solicitor's fees and, in addition, any arrangement/application fees charged by your new mortgage lender which may cost as much as £500 or more. These costs, along with the penalties, could cancel out the savings you are hoping to make by switching mortgages. It's a simple question of adding it up. Obviously you don't want to switch mortgages to supposedly save money only to find yourself trapped in an unnecessarily expensive deal. The best remortgaging deal may be one that doesn't offer the lowest interest rate but doesn't tie you in either.

Before you apply for a new loan it is well worth speaking to your existing lender, as it might be able to offer you a deal which is better than your current one.
If it is unable to do so and you have found a new mortgage, you need to set the conveyancing process in motion. If your remortgage is at all complex it is worth talking your requirements through with a solicitor to get an idea of how much the legal work will cost.

Where do I start?

Get in touch with your lender and ask for a redemption statement. This should be fairly straightforward. When it arrives it will include information concerning the amount still owed on your mortgage and any penalties you will face if you want to pay off the loan. Armed with the redemption statement you can think about your new mortgage. Always get three quotes for comparison purposes. Once you have found a potential deal request illustrations showing what the monthly repayments will be. These figures can be compared with your current repayments to show the real monthly savings. Remember, if you are nearing the end of a fixed- or discount-rate deal you should also get an illustration from your current lender showing the repayment on its standard variable rate (SVR) as a comparison.

Lenders will often let you book a deal two or three months in advance, so you don’t need to wait until your existing special offer period is at an end before you start the remortgage process. If you are organised you could even complete on the day that your existing deal switches to a higher rate!
It should take about a month to complete the remortgage. You will get an offer of advance if the lender's surveyor is satisfied with the value and condition of your home, and your new lender will liaise with your existing lender. Once you have received a completion statement from your solicitor or new lender, the process has finished and you can relax. Just remember, remortgaging your property is not something to be ashamed of or shy about. You do not owe your lender loyalty and they are certainly making money out of you, as most lenders do not reward loyalty with a reduction in rates. Look around, find the best rate and spend the difference on yourself!

A punter’s view of the London property market

A grass root level survey by London property specialist Chesterton International gives an insight into the sales and lettings market in the capital from the home owner’s perspective. Property would appear to be the new pension alternative, as 63 per cent of landlords are aged over 45 years and 55 per cent have acquired their property as a 'buy to let' investment. Nearly half have seen their property increase in value by more than 50 per cent since they bought it and 70 per cent have no intention of selling in the near future. Property ownership is split equally between male and female landlords and both are hopeful of finding the perfect tenant, preferably a non-smoker (13 per cent), professional (14 per cent), no pets (12 per cent) pays rent on time (16 per cent) and leaves the property in a good condition (17 per cent).

Tenants, on the other hand, have shown themselves to be canny negotiators when it comes to initial rental agreements with 86 per cent getting their rent reduced by up to 19 per cent of the asking price. Male tenants are slightly more effective at this (56 per cent). The most common restrictions in rental agreements are that 62 per cent have a no pets clause and 24 per cent allow 'no noise after designated times'. It also appears that tenants are becoming increasingly discerning – nearly a quarter of tenants surveyed took up to two months to get what they wanted, with a shopping list of criteria that included the right number of bedrooms (34 per cent), proximity to local transport (25 per cent) and adequate living space (23 per cent).

The same criteria also appears on potential purchasers' wish lists, with 31 per cent looking for more space, 19 per cent an improved location and outdoor space and 22 per cent a contemporary décor. Male respondents are particularly interested in more space (60 per cent) whilst 57 per cent of women are keen on the latter. Half the respondents were looking to buy on their own and 55 per cent of them had already bought over three times in the past. The predominate age category looking to buy (55 per cent) was 35-44 years old, although overall 32 per cent did not currently live in London.

Conversely, 56 per cent of people with their property on the market were not looking to buy another property in London, and more than half of those were looking to move 25 miles or more outside the M25 – 86 per cent of these people were single and 67 per cent were women. Nearly half had lived in their property for up to four years and 45 per cent cited the need for a bigger property as the main reason for moving. They also believe in spending money to make money – 39 per cent have carried out decorations in order to sell their property and 29 per cent have installed a new kitchen or bathroom, with 27 per cent having spent up to £5,000 on work to enhance their sale offer.

A punter’s view of the London property market

A grass root level survey by London property specialist Chesterton International gives an insight into the sales and lettings market in the capital from the home owner’s perspective. Property would appear to be the new pension alternative, as 63 per cent of landlords are aged over 45 years and 55 per cent have acquired their property as a 'buy to let' investment. Nearly half have seen their property increase in value by more than 50 per cent since they bought it and 70 per cent have no intention of selling in the near future. Property ownership is split equally between male and female landlords and both are hopeful of finding the perfect tenant, preferably a non-smoker (13 per cent), professional (14 per cent), no pets (12 per cent) pays rent on time (16 per cent) and leaves the property in a good condition (17 per cent).

Tenants, on the other hand, have shown themselves to be canny negotiators when it comes to initial rental agreements with 86 per cent getting their rent reduced by up to 19 per cent of the asking price. Male tenants are slightly more effective at this (56 per cent). The most common restrictions in rental agreements are that 62 per cent have a no pets clause and 24 per cent allow 'no noise after designated times'. It also appears that tenants are becoming increasingly discerning – nearly a quarter of tenants surveyed took up to two months to get what they wanted, with a shopping list of criteria that included the right number of bedrooms (34 per cent), proximity to local transport (25 per cent) and adequate living space (23 per cent).
The same criteria also appears on potential purchasers' wish lists, with 31 per cent looking for more space, 19 per cent an improved location and outdoor space and 22 per cent a contemporary décor. Male respondents are particularly interested in more space (60 per cent) whilst 57 per cent of women are keen on the latter. Half the respondents were looking to buy on their own and 55 per cent of them had already bought over three times in the past. The predominate age category looking to buy (55 per cent) was 35-44 years old, although overall 32 per cent did not currently live in London.
Conversely, 56 per cent of people with their property on the market were not looking to buy another property in London, and more than half of those were looking to move 25 miles or more outside the M25 – 86 per cent of these people were single and 67 per cent were women. Nearly half had lived in their property for up to four years and 45 per cent cited the need for a bigger property as the main reason for moving. They also believe in spending money to make money – 39 per cent have carried out decorations in order to sell their property and 29 per cent have installed a new kitchen or bathroom, with 27 per cent having spent up to £5,000 on work to enhance their sale offer.