Buying, selling and letting - Thursday, February 24, 2005

New right-to-buy policy

The deputy prime minister, John Prescott, is to revive a plan which gives housing association tenants the chance to partially buy their homes – a policy that met with rejection from his own department less than two years ago on grounds of projected cost. Prescott unveiled a report into the policy, known as ‘social homebuy’ in the House of Commons this week.
Under the newly unveiled five-year housing plan, housing association tenants will be able buy a share in the value of their homes ranging from ten per cent to 50 per cent, effective from April next year.
And in an effort to ensure that social housing supply is protected, the scheme will also give the housing association landlords first refusal on buying back the stake in the home when new equity owners come to move.
Prime minister Tony Blair said the policy would provide ‘a more flexible way of acquiring and then building up equity in the value of homes’.

Market growth predicted

King Sturge Residential has predicted growth of up to three percent in the housing market this year and says that current uncertainty surrounding the residential property market could give way to opportunities in 2005 for both investors and first-time buyer, with knock-on effects for the rest of the market.
At a national press conference earlier this month, partner Avril Butt predicted that the historically low cost of borrowing and positive economic outlook could stimulate the market sufficiently to balance current negative sentiment. She pointed out, however, that some regions are experiencing a correction in price levels and will take longer to recover.

Confidence in the residential property market will be boosted by preparations for the expansion of Self Invested Personal Pension schemes (SIPPs) in April 2006, she said, adding that a further significant boost to confidence could be delivered through an increase in stamp duty thresholds.
‘Consumer demand in 2005 promises to improve,’ said Ms Butt. ‘Borrowing, in particular, remains affordable and developers are already prepared to be more flexible on pricing. Demand is always price-sensitive and could increase in a softening market in London and the South East. There is a growing pent-up demand, with a substantial well of people waiting to buy at the right price. Many of them are now renting, with implications for both the rental and investment markets.’
Ms Butt said the Government has not done enough to help to property market, instead imposing quotas and bureaucracy the housing industry could well do without. ‘The Government
Continues to fiddle at the edges of the property market … Other solutions need to be found.’
Like many in the industry, King Sturge called for an uplift in stamp duty thresholds to better reflect current market realities. This, it says, should stimulate the lower end of the market, in turn providing impetus throughout the market.

How will the housing and mortgage markets fare in 2005? Paula John of Your Mortgage magazine asks a panel of experts.

Interest rates rose in 2004 and house prices are finally slowing after a five-year boom. The boom lasted longer than anyone had predicted – including many of the experts Your Mortgage magazine asked in last year’s predictions. Everyone expected house price inflation to drop to single digits in 2004, with the notable exception of Savills, which forecast growth at ten per cent. The actual figure was in the high teens.

Mortgage lending broke records again in 2004, passing the £300 billion mark for the first time. And interest rates remained low in historic terms, despite four increases through the course of the year.
The experts had predicted that Halifax’s base mortgage rate would be between six per cent and 6.5 per cent by 31 December 2004. In fact the rate ended the year at 6.75, higher than anyone predicted.
This year’s predictions for house price inflation range from minus two per cent to plus eight per cent, proving the outlook in 2005 is unclear. And interest rates are forecast to remain relatively low, with estimates for the Halifax base mortgage rate varying from 6.25 per cent to seven per cent by the end of the year.

So the experts think the market will slow but interest rates will remain around their current levels. But of course, as they have shown in the past, no one has a crystal ball.

Nationwide Building Society
Mortgage rate        7.00%
House price inflation    2.00%

As expected, 2004 was a year of two halves for the housing market, with the significant momentum of late 2003 carrying over to the first half of 2004. However, since the summer, house price growth has been much weaker. The price of the average property is likely to finish 2004 up just shy of 15 per cent.
Although there are risks around the outlook for the housing market, the most likely scenario is that house prices stagnate for a significant time rather than fall. With house prices more than doubling over the last four years, property values in relation to average earnings are now at record highs.
However, mortgage payments as a percentage of take-home pay remain below the peak of the early ‘90s and, in stark contrast to that period, the economy remains broadly supportive to the housing market.

Employment is set to remain high and even if interest rate rise once more in this cycle, the peak will have been low compared with past cycles. Uncertainty remains surrounding the impact of buy-to-let on house prices in general, with demand for buy-to-let set to moderate further during 2005. However, a large-scale sell-of of residential rental property looks unlikely.

Overall we expect annual house price inflation to slow significantly during 2005, with the price of the average UK property rising by two per cent during the year. In contrast to 2004, the pace of house price growth is set to become more uniform across regions with the sharpest slowdown coming in areas that have risen strongly in 2004, such as the North West, Yorkshire & Humberside and Wales.
Philip Williamson, chief executive

Charcol
Mortgage rate        6.25%
House price inflation    4.00%

At the end of 2003 we were in an increasing interest rate environment but today’s situation is very different. The Bank base rate looks relatively stable and house price indices showed small decreases towards the end of 2004.

However, the target the Chancellor actually set the MPC to aim at is the Consumer Price Index (CPI) and this has been bobbing along very close to the bottom of its target range of one to three per cent, with a very real danger it will fall below one per cent early in 2005. For these reasons we believe the next move in Bank base rate will be down, as the MPC will need to apply a modest stimulus to the economy in 2005. The first 0.25 per cent cut could well come in the first half of the year, with a further 0.25 per cent reduction in the second half. Halifax’s variable rate will fall in line with the Bank base rate, thus ending 2005 at 6.25.

The prospect of buy-to-let investors effectively being able to buy property at a 40 per cent discount by investing through their pension fund from April 2006 will be an additional boost to the market towards the end of 2005. House prices will start picking up in the second quarter of 2005 and over the year as a whole our prediction is that they will increase by four per cent.
Ray Boulger, technical manager

NatWest
Mortgage rate        6.79%*
House price inflation    3.00%

The Bank of England left interest rates on hold in December, in the face of weaker than expected GDP growth in Q3, further signs of a slowdown in the housing market and lack of inflationary pressures. We expect interest rates to remain on hold until February, when we expect a further 0.25 per cent rise to five per cent.

However, if GDP growth does not rebound and the housing market slows at a sharper rate than expected, then interest rates may already have peaked.
The housing market has clearly turned, and all market indicators point towards a period of subdued growth. Although some headline figures point to a sharper than expected slowdown, economic fundamentals remain strong, and we are confident that the market will achieve a ‘soft landing’.
Remortgaging will remain strong, supported by discount rates and a rising number of remortgagers. It will still be necessary for lenders to be innovative to help first-time buyers on to the property ladder. The continuing demand for rented property will also support to buy-to-let market, which is likely to remain popular with investors.
*based on NatWest’s standard variable rate
Charles Haresnape, head of mortgage sales and intermediary development

Yorkshire Bank
Mortgage rate        7.00%
House price inflation    8.00%

We see property price inflation falling from around 19 per cent in 2004 (using the Halifax index) to eight per cent year-on-year in 2005, which would be the weakest rate of annual growth since 1999.
We still see a soft landing in the housing market as being the most likely scenario, but it seems that the regional pattern could very significantly, with northern regions cooling after price rises of over 20 per cent this past year, while the South East market starts to strengthen. This will be helped by continued migration to the region, as well as the ongoing recovery in the Greater London economy.
The fact that the Bank of England seems to have stopped increasing rates may make tracker mortgages more attractive for customers in 2005. If the typical mortgage is held for five years, then a tracker would give customers the chance to enjoy the benefits of falling rates. The protection provided by a fixed-rate mortgage may look less attractive should the MPC signal in May 2005 that rates are high enough, and certainly lower than our present projections.
Gary Lumby, head of retail services

Abbey
Mortgage rate        7.00%
House price inflation    2.00%

On current projections for inflation from the Bank of England and latest trends in data, it is possible that Bank base rate could rise by a further 0.25 per cent to reach five per cent during 2005.
The monetary policy committee (MPC) judges all the possible influences on inflation and, with output seen as being close to capacity, it seems a little too early to conclude confidently that Bank base rate has already definitely reached a peak.
If the base rate does peak at five per cent, this will still be a full one per cent below the previous peak at the start of the decade.
There is now emerging evidence that the rate of house price growth is slowing. We expect annual house price growth to slow markedly during 2005 – by the end of the year we predict it to be around two per cent.

In such a slowing price environment it is quite possible that house prices overall will show falls in some months in 2005, and particular features of local housing markets may become more important in determining house price trends. It is not our expectation that there will be widespread house price falls – overall economic performance is strong, with employment high, and we expect that to continue. There is, however, always a risk that prices for any asset will fall and the Bank of England has drawn attention to its view that the risk of house prices falling is now higher than it has been in the past.
Barry Naisbitt, chief economist

Halifax
Mortgage rate        6.25%
House price inflation    -2.00%

The fundamentals supporting the housing market are sound. The economy’s strength, the high level of employment and low unemployment, together with the lowest interest rates since the 1950s, have been key factors behind the exceptional growth in house prices over the last few years.
However, the increased cost of borrowing over the past year, combined with the increasing difficulties that aspiring first-time buyers have faced in getting on to the housing ladder, have combined to put downward pressure on housing demand. This has resulted in a small fall in house prices over the past few months.
Halifax forecasts that house prices in the UK will fall by two per cent in 2005. This slight fall follows nine years of rising house prices when the average home has increased in value by almost £100,000, a 160 per cent rise.
Beyond 2005, we expect the market to record modest price increases; affordability will also improve, especially for first-time buyers, who will return to this market in larger numbers than in recent years.
The housing market is easing from the exceptional growth of the last few years, but it is important to remember that the market is underpinned by very strong fundamentals: low interest rates; high levels of employment; and shortage of housing supply. There is no sign of any significant change to any of these underlying factors. Overall affordability remains good and will improve in 2005. The expected modest reductions in both house prices and interest rates in 2005 are calculated to reduce mortgage payments as a percentage of earnings for new borrowers from its current 19 per cent – in line with the long-term average and well below the peak of 34 per cent in 1990 – to 16 per cent.

Savills Private Finance
Mortgage rate        6.25%
House price inflation    7.00%

I am broadly optimistic about the prospects for the property market next year. I don’t buy into what the doom mongers are saying about there still being a chance of a crash.
Instead, I expect the gradual slowdown in house price growth, which we have been witnessing, to continue. Prices will become more modest but I don’t see them crashing. We have already seen a significant correction, particularly in the prime London market, which has stagnated over the past couple of years. But given that January to March is bonus time for the City banks – and bonuses are likely to be up in 2005 – it’s encouraging for the property market. There is likely to be plenty of competition at the high end of the market, particularly in London, while the gradual slowdown will continue across the rest of the UK.

One feature of 2005 is likely to be the continued absence of first-time buyers, as prices will continue to be beyond most of them, even though they are falling. Lenders and brokers will need to be increasingly innovative with the products they offer to help them on to the property ladder.
Mark Harris, managing director
 
Purely Mortgages
Mortgage rate        6.60%
House price inflation    3.00%

There is an increasing consensus that the MPC may have overshot with the regular increases in Bank base rate seen during 2004.

Housing transactions have already slowed down and evidence is emerging that consumer spending is now back under control. With a strong likelihood that the Government will be re-elected in 2005, the Budget will carry significant increases in the tax burden, whether by stealth or not.
The MPC is now probably anticipating that any further suppression of consumer demand will be taken care of by increases in the personal tax burden. This, combined with the uncertain global economic outlook dominated by the massive funding deficit in America and the increase in oil price, will contain pressure on UK interest rates. I therefore expect to see a small easing in interest rate policy, with Bank base rate ending the year at 4.50 per cent, with the downward adjustment happening in the third quarter. Recent interest cycles have shown lenders widening their margins when rates fall and holding the widened margin when rates increase. With the prospect of few further decreases in rates and the impact of their ever-declining back books I don’t believe the decrease will be passed on in full and so I project the Halifax variable rate will be 6.60 per cent at the end of 2005.
Mark Chilton, managing director

Builders: an insurance risk?

Blundering builders are putting home owners at risk of an insurance trap, warn experts. Home owners spent more than £40 million on DIY and building jobs last year. However, most standard home contents policies don't cover accidental damage caused by builders or other contractors. Martin Nugent, of insurance broker UK & Ireland Insurance Services, warned: ‘People forget that domestic buildings policies usually only cover damage done by the home owner and their family – not builders. The first step is to ensure that reputable builders are used and references are checked.
‘Thousands of people will be undertaking ambitious projects to improve their houses in 2005. New kitchens, loft conversions and extensions are expensive and it’s worth checking how good your insurance policy is before the work starts.’

Headache for sellers

While the majority of new home buyers find the house purchase process straightforward, more than two-thirds (70 per cent) say selling their old property was much harder work. That's one of the findings of New Homes Today 2004, a survey conducted by an independent research house on behalf of several UK house builders, including Redrow.
The research, among more than a thousand recent new home buyers, was designed to uncover the behaviour, beliefs and attitudes of purchasers.
Just over half of the sample (51 per cent) found the house purchase process either straightforward or very straightforward, with only 12 per cent rating it very stressful. But of the various stages involved in the process, respondents indicated that selling their old property was the biggest headache, with the vast majority describing it as stressful.

Market looking good

The average property price in the UK fell again by a further 1.2 per cent last month, but finished 2004 on average 6.4 per cent higher than a year ago according to recent data from the National Association of Estate Agents (NAEA). However estate agents across the country report that activity is starting to increase and are on the whole expecting the market to pick up once again, with 95 per cent expecting this to happen by Easter at the latest, and over a half of all agents surveyed expecting an upturn in January.

There was little movement in the supply and demand figures, showing only a marginal decrease in the number of buyers and new instructions, as expected at this time of year. However, despite a slight decrease, the number of houses available is higher than at the same time in previous years, indicating that the market has the scope for strong recovery from the annual Christmas slowdown.
Agents report that sensibly priced properties are selling well and this is reflected with the news that buyers are achieving an average discount of around five per cent from asking prices, further demonstrating the shift in the balance of the market towards a buyer’s market.  
Over the second half of last year, as average prices stabilised, property became more affordable for many and the percentage of first time buyers rose. This level looks set to be sustained in 2005. First-time buyers currently comprise 16.1 per cent of total sales, compared to less than ten per cent at the end of the summer when house prices were peaking.

If the holiday season has left you with a financial headache, why not remortgage? It can get you some ready cash – and a better deal, says Alex Hammond of Your Mortgage magazine

How festive was your season? Chances are, the more festive it was the bigger the financial hangover you now have to deal with. And as the seasonal colours turn into bank account red, you might have to start showing the colour of your money. If you don’t want to spend the whole of the New Year repairing the destruction of one festive season, you need to take action. And you can do this with a little help from your mortgage.

Spread the load

Tony Jones, managing director of Pink Home Loans, which has launched its mortgage advice service for borrowers, says: ‘Using your mortgage instead of short-term borrowing, such as credit cards and personal loans, to consolidate Christmas debt has its advantages. The interest rate will usually be lower and the debt is spread over a longer term.’
One way to repair your bank account is to top it up with money from a further advance on your mortgage. If you have equity in your homes, a number of lenders will lend you some extra cash, which is added to your mortgage and paid off at the mortgage rate. You don’t necessarily even have to tell the lender what the money is for, but some will lend a different amount depending on this. Nationwide, for example, allows additional borrowing of up to 95 per cent of your home’s value (including the amount of your existing mortgage) if you are using the money for home improvements, or up to 85 per cent for other purposes.
A further advance could be useful if you need money in a hurry, but if you are going to start reviewing your mortgage you may as well consider switching it completely to get a better rate. You could even receive a little extra cash and still save money on your monthly repayments if you get a really good deal.

Many lenders will lend you more than 90 per cent of your home’s value but the cheaper rates are reserved for lower loan-to-value (LTV) mortgages. So if you borrow more it could mean you end up paying a more expensive rate.
Plus, it is, of course, all still extra borrowing. Jones warns: ‘The disadvantage of using your mortgage to consolidate debt is that you risk eroding your equity. This is a concern when house prices are falling. If you can’t keep up repayments you could lose your home.’

Do your homework

Jones offers some advice. ‘First, I’d look closely at the terms of all the deals,’ he says. ‘Fees can vary dramatically and if you are only borrowing a small amount it can make the difference between a good deal and a bad deal. Also, make sure there are no early repayment charges – and if there are, make sure the rate is low enough to justify them.
‘On balance, and if you are sensible, a remortgage is a good way to help with your financial planning. There are some very attractive deals out there and with the property market slowing, lenders are working harder to attract your business.’

Escalating house prices mean that many first-time buyers cannot afford to go it alone. So why not buy with a little help from your friends, asks Christina Jordan of Your Mortgage magazine.

Although first-time buyers are coming back to the housing market, they are still few in number. Unless you earn a small fortune or have wealthy parents, you will find it difficult to get a mortgage on a single salary, which means you don’t get to own a property and therefore do not benefit from the increases in equity that many existing home owners can afford to smile smugly about.
So if you’re a first-time buyer, you need to look at your options. You could live on bread and water and save every spare penny you have to amass a bigger deposit, but with prices still continuing to rise, however slowly, the goalposts are continually moving while you are not.
You could take out a 100 per cent mortgage, where you don’t need a deposit; but then you’ll be borrowing more and probably paying a higher rate to do so – the best rates are available to those with a ten per cent deposit or more.
Or you could stretch your finances. Some mortgage lenders will lend you four or even five times your income – but only if you have a significant deposit and a particular kind of job. And this can be risky as borrowing to the limit gives you no leeway when interest rates rise or your income drops.

I want to hold your hand

If your salary is not big enough to enable you to buy your first property alone, you could consider buying with a partner or friends. Many couples buy their first home together and the lender will take into account both incomes.
Traditionally, you can borrow two-and-a-half times joint incomes or three times the biggest income plus one times the smaller income, though many lenders now offer more.
Most mortgage lenders will let you buy with up to three other people, but many will only take into account the two highest incomes. Joe Wiggins, spokesperson for Nationwide, explains: ‘We will take up to four people buying together, but we only take into account the highest two salaries when we look at how much you can borrow. Otherwise, four people might be able to borrow a huge amount. We use affordability rather than income multiples, which is a slightly more sophisticated way of calculating how much we lend, as we take into account outgoings as well as income.
‘It’s difficult for first-time buyers to get onto the housing ladder, with the average house price in the UK now reaching over £130,000, so joining up with friends can definitely be a practical option for some.’
But before you dive into buying with friends, you need to be aware of the potential pitfalls.

We can work it out

The most important thing to remember is that you may be best friends at the moment but nobody can predict the future. One person may, and probably will, decide to go his or her own way at some point, perhaps to set up home with a partner. Or one of the group could become unemployed. It’s essential that you know exactly what will happen when one person decides to leave or can no longer afford to pay.
Each borrower is responsible for the whole mortgage, not just their bit, so if three people bought together and one left the other two would be responsible for the whole thing.
It is important to seek legal advice before buying together; get a document drawn up, usually a trust deed, covering all potential situations. And you need to decide whether to buy as joint tenants or tenants in common.

A service has recently been launched for first-time buyers who want to get onto the housing ladder by buying with others. FirstRungNow offers a Joint Ownership Service that gives advice to groups buying together and helps individuals find potential property partners to invest with. Managing director Helen Adams explains the benefits of the service. ‘You can come to the website, FirstRungNow.com, for information and advice about joint ownership, such as legal and insurance requirements. And if you’re looking for someone to boost group numbers, or to find someone else with whom to buy, you can contact other people wanting to buy in the same town – you read profiles and choose who you want to get to know by email.’

Buying together could provide a valuable stepping-stone onto the housing ladder if your income won't stretch to buying your first home alone, but make sure you fully understand what you are getting into, choose people you know well and always get a legal document drawn up setting out what will happen if someone wants to sell their share. While money can't buy you love, if you go into the process with your eyes open, buying with a little help from your friends could turn out to be a great move.
yourmortgage.co.uk

Despite a range of doom-mongering forecasts predicting the end of the property market as we know it, a quick look at the mortgage lending statistics will show that the market is actually quite buoyant. The figures also demonstrate that first-time buyers are coming back into the market, having been somewhat sidelined by high prices; these first-timers are seeing price rises slow – or even reverse – and are now taking the leap into home ownership.

According to the Council of Mortgage Lenders (CML) the proportion of home loans approved in October for first-time buyers was nudging one-third of all mortgages; at 32 per cent, this figure is a substantial improvement over the previous month’s 29 per cent. Indeed, this improvement in the participation of property novices marks a high point in recent months, as the current number of first-time buyers as a percentage of home buyers is the highest since April 2003.
With the monetary policy committee of the Bank of England having kept interest rates in a holding pattern these last few months, it looks as though the first-time buyer will continue to come back to its previous place as a major force in the marketplace.

Mortgage lending fell in October for the third consecutive month to the lowest level since February, according to the Council of Mortgage Lenders (CML). Gross lending totalled £23.3 billion, eight per cent lower than the previous month’s figure of £25.4 billion; and the most recent figure is 17 per cent lower than that of October last year, when lending totalled £28 billion.
Although the number of loans for house purchase declined by nine per cent compared to the previous month, the slowdown was more pronounced for movers than for first-time buyers. House purchases accounted for 44 per cent of gross lending, a figure that is unchanged from the previous month.
Michael Coogan, CML director general, said: ‘These figures are in line with other indicators suggesting that interest rate rises have had their desired effect and the housing market is slowing down. Although lending figures may fluctuate going forward, we expect the slowdown to continue through the winter months.
‘However, interest rates are now probably at or near their peak, so despite the slowing market the overwhelming majority of existing borrowers will be able to continue to afford their mortgage payments.’

Looking ahead

Home hunters will start 2005 on a brighter note according to recent research. After hitting a low point in November, confidence in the housing market recovered slightly in December. Of people surveyed, 65.8 per cent expect house prices to fall in 2005, compared to 72 per cent in November, and 30 per cent now expect house prices to rise, compared to 24 per cent in November, showing a real belief in the market’s fortunes.

Stamp duty to remain high for UK home buyers

UK home buyers will be disappointed that the Chancellor did not take the opportunity in his 2004/5 Pre-budget report to reduce the increasing burden of housing tax policy – stamp duty and inheritance tax.

The UK housing market has remained strong in 2004, with house prices rising by 16.8 per cent during the year. Halifax estimates that the Government currently takes around £4 billion each year from residential stamp duty alone.

Halifax, the UK's largest mortgage lender, will lobby all three main political parties for changes in property taxation, especially inheritance tax and stamp duty, in the run up to the next general election.
Research by the Organisation for Economic Co-operation and Development (OECD) shows that UK property taxes, as a percentage of Gross Domestic Product (GDP), are the highest for any major developed country. According to the OECD, UK property taxes have risen from 3.7 per cent of GDP in 1995 to 4.3 per cent in 2002 (using the most current data available). In contrast, the average for Euro-zone countries is just 1.9 per cent.
The UK is one of only four OECD countries where property taxes make up more than ten per cent of Government revenues. The Euro-zone average is 4.9 per cent. In the UK, property taxes as a percentage of total Government revenue have increased from 10.5 per cent in 1995 to 12 per cent in 2002.

Shane O'Riordain, general manager for Government relations at Halifax, said: ‘It is disappointing that the Chancellor has not taken steps to ensure housing tax revenue is fairer where it counts, particularly for first-time buyers. As a very minimum we would like to see property tax thresholds automatically aligned with house price inflation.’
Ray Boulger of Charcol, says, ‘With income tax, the higher percentage rates of tax are only payable on the amount of income over certain thresholds. However, with stamp duty land tax, once you reach a certain level borrowers are forced to pay the higher percentage on the total amount. A sensible starting point for the one per cent tax band would be the average property price, based on Land Registry figures (currently £188,000), and the annual inflation adjustment (up or down) should also be based on Land Registry figures.’

Halifax estimates that the stamp duty threshold (currently £60,000) would currently be £146,750 if it had been increased in line with the rise in house prices since March 1993 – the last time that the threshold was increased. In 1993 almost two-thirds of dwellings sales were beneath the stamp duty threshold, compared with around a quarter now. According to Halifax figures the average first-time buyer now pays more than £1,000 in stamp duty, equivalent to around six per cent of their deposit or around two weeks of their annual income.

Hotproperty gives you some hints on what to think about when it comes to front door security.
A secure front door is vital for keeping your home safe and protected. Fitting the right locks and taking a few precautions will deter burglars and provide you and your family with peace of mind, whether you're at home or away. And this is especially important during these summer months, when the majority of people spend all day out of their homes, either enjoying the outdoors or actually out of the country, and burglary rates are at their highest.

Locks

Firstly, remember that a lock is only as strong as your front door. If your front door or frame is weak, replace this first before spending time and money on locks. In general, several locks will be far more effective than a single lock, however strong. This is because a heavy blow to the door may cause the frame to split or a single lock to fail, and two or more locks will strengthen the door's resistance.
It is also an advantage to have different types of lock. You should ideally have at least a cylinder lock (the most common type of front door lock, with three parts – the cylinder, the body and the staple), which locks automatically each time the door is closed, together with a 'dead bolt' mortice lock. Hinge locks or rack bolts – similar to those used for window frames – are also very effective as additional locks.

Insurance companies will often ask what types of lock you have on your front door before giving an estimate. Fitting certain locks may make you eligible for lower premiums.
Other ways to improve the security near your front door:
Install a door viewer or security chain. Each provides a simple way of monitoring who is at your door before you open it fully
Set up a routine for answering the door to callers. Always ask for identification from service engineers – many will now set up a password when arranging to visit as a way of confirming their identity
Keep the area around your front door tidy and maintained. Repair any damage to the door or frame promptly. This will help you highlight any weaknesses in your security before they become problems. Psychologically, a home which looks well kept is perceived to be well protected
Make sure there is adequate lighting, both outside your front door and in your hallway

A government-backed tribunal service provides quick and easy housing dispute resolution – but thousands are still missing out, finds Johnny Turner.

Thousands of people throughout the country could be missing out on the opportunity to resolve costly and traumatic disputes over their property leases, rents, service charges and other housing problems, because they are unaware of the quick and affordable solutions offered by tribunals.
The government-backed Residential Property Tribunal Service (RPTS) runs tribunals that are able to resolve a range of housing related disputes. These tribunals are quicker and cheaper than the County Court system and are available locally to landlords, leaseholders and tenants alike. Applications cost between £50 and £500 depending on the nature of the dispute. Certain disputes can be resolved free of charge.

While use of the RPTS’s services is growing, senior president Siobhan McGrath believes that a great many people who encounter problems with leases, rents and other housing issues simply do not know what solutions are on offer through the tribunal system. McGrath and her colleagues have embarked on a nationwide awareness campaign to highlight that help is at hand.
‘Whether you’re a leaseholder, tenant or landlord, housing disputes can be stressful, time-consuming and expensive,’ says McGrath. ‘Our tribunals, which are available locally throughout the country, can resolve many types of dispute, breaking the deadlock with the potential to save both sides time and money.’  

The RPTS is one of 70 tribunals in England and Wales. It is able to settle a wide range of disputes, including disputes over rents under regulated and some assured tenancies, as well as issues regarding leasehold enfranchisement and service charges.
The RPTS is strictly impartial and every case it handles is decided on its merits. Hearings take place locally or at one of RPTS’s five regional offices. If applicants have mobility problems, panel hearings can even be held in their own homes.
Hearing panels are typically made up of a valuer, a lawyer and a lay person. Seventy percent of disputes are heard within 20 weeks or, in urgent cases, even sooner. Panel members usually undertake property inspections.
As well as being efficient the service is also extremely cost-effective. You don’t have to hire a lawyer or valuer to represent you as the hearings are semi-formal and user-friendly, although you can appoint a lawyer at your own expense if you wish.
The RPTS’s powers were extended last year as a result of the Commonhold & Leasehold Reform Act 2002. Leasehold Valuation Tribunals, which form part of the Residential Property Tribunal Service, now have the ability to settle disputes on:
Service charges The LVT has much wider powers to decide whether service charges are payable including decisions on whether the costs are reasonable, the standards of work are reasonable and whether the lessees have been properly consulted.
The right to manage A new right for lessees of flats to manage their own properties has been introduced. The LVT can decide disputes between the landlord and the right-to-manage company.
Administration charges The LVT can decide whether other charges under a lease (e.g. a landlord’s costs associated with giving consent to sell the flat) are payable and/or reasonable.
Variation of leases The power to correct defective leases, which was previously exercised by the County Courts, has been transferred to the LVT.

Under the Government’s Housing Bill, The Residential Property Tribunal Service will also become the appeals body for local council decisions on housing fitness standards, the licensing of landlords in selected areas and the licensing of houses in multiple occupation.

Siobhan McGrath says: ‘We are urging anyone who is having problems resolving disputes over any of these issues to contact one of our regional offices or phone the national helpline.’
RPTS National Helpline 0845 600 3178
Regional office 020 7446 7700
rpts.gov.uk

Colder weather brings with it a whole new set of home safety concerns. However, by following these simple guidelines from the experts at gas-elec you can have a safe winter.

Winter requires heat and light that just aren’t necessary at other times of the year. This means dealing with open flames, boilers and heaters that you do without in summer. With the cold with us once again it’s a good time to remind ourselves of the basic rules of keeping you and your family safe during the freezing season.

Love your boiler

By servicing your boiler on an annual basis – before the deep winter sets in – you will not only reduce the likelihood of a breakdown but may actually increase the working life of your boiler by up to five years. A pre-winter service carried out by a CORGI-registered engineer may also make your boiler run more efficiently, helping you reduce those dreaded January bills.
If the worst happens and your boiler breaks down during the festive period, there are a copule of quick checks you can do before you incur the cost of an engineer call-out charge. Central heating systems often switch off for other reasons besides a problem with the system itself – for example, a blown fuse or a lack of water in the system. These are the first two things an engineer will check and are simple things to fix. So try checking your water gauge and topping up the system, as well as replacing the fuse.
If the boiler is still not working, you should not attempt to repair the boiler in any way. Having made sure it’s neither the fuse nor the water level, call a CORGI-registered service engineer.

Protect yourself from CO

You can’t see it or smell it but carbon monoxide (CO) is a poisonous substance which is responsible for the deaths of 50 people every year, and which makes many more ill from exposure to it. A good way to minimise the risk of CO poisoning is to have chimneys swept and gas appliances and flues checked.

Draughty dangers

Living rooms with solid fuel heaters should be ventilated, as hazardous situations can arise when windows and doors have been draought-proofed and the permaent ventilation is blocked by the home owner. When keeping out uncomfortable draughts, make sure that you’re not keeping in something much more dangerous: deadly CO fumes!

Lights and electricity

Electric heaters and kitchen appliances are in constant use during the winter and should also be checked by a registered electrician to ensure they meet safety standards.
If a piece of electrical equipment cuts out continually or gives off a strange smell, or if the plug feels warm, switch off immediately and get it checked.
Never overload power points. If there are not enough sockets, consider having more installed as this is a much safer option than extension leads.
For appliances that use a lot of power, such as heaters, hair dryers and kettles, use only one plug per socket.
Never double up your Christmas tree lights with the plug of another appliance as this could result in overheating, electric shocks and short circuiting – and could possibly cause a fire.

Candles and flames

Candle safety is all about common sense but during the festive season our sensible selves can seem to be absent. There are, however, some simple rules you should follow about candle use:

Don’t surround candles with foliage or Christmas decorations
Always use a stable holder – don’t stick a candle to a saucer with hot wax
Don’t place candles on carpets, tablecloths or other flammable surfaces
Keep lit candles away from pets, children, hair and clothes
Never leave burning candles unattended while you are out of the room – and never forget to extinguish them before going to bed.

Bedtime checks

By carrying out the following checks before you go to bed, you can greatly reduce the chance of a fire starting while you are asleep – and increase your peace of mind:

Make sure all the burners or rings of your cooker are off

Check all heaters are off and place guards in front of open fires
Switch off all unused electrical appliances at the socket
Close all internal doors, particularly in unoccupied rooms such as the kitchen, living room and dining room

This information is provided by gas-elec, a company that provides the next generation of gas and electrical safety inspection services to letting agencies, private landlords, home owners, buyers and sellers. For more information visit gas-elec.co.uk or call 0800 587 9999 for your regional offices.