Buying, selling and letting - Wednesday, October 19, 2005

Mortgage Guarantor Scheme from Teachers Building Society Helps NQTs onto the First Rung of the
Property Ladder

Teachers Building Society is helping Newly Qualified Teachers (NQTs) get onto the property ladder with the launch of its Mortgage Guarantor Scheme - an innovative offering that allows parents to guarantee additional funds over and above those met by their child's salary multiples. Originally established by the National Union for Teachers (NUT) to look after the financial interests of education professionals, Teachers Building Society is an independent mutual building society providing competitive mortgage and savings products to the education sector.

As property prices across the UK rocket with the average house price in the UK in July 2005 at £186,207*, one of the major difficulties facing first time buyers is the high cost of properties in relation to teachers' salaries. A number of mortgage lenders will allow parents to provide a guarantee to the whole mortgage in order to secure a higher loan, but this can lead to the parent experiencing credit difficulties in the future. The Teachers Building Society offers the ideal solution to this issue with its new Mortgage Guarantor Scheme. For example, a teacher earning £21,000 per annum with no commitments would normally be offered a mortgage at a multiple of four times their salary and therefore qualify for a mortgage of £84,000. If the loan required is £125,000 and the parent is in a position to stand as a guarantor the Teachers Building Society will only require them to guarantee £41,000 as opposed to the whole mortgage.

Mike Hislop, Marketing Manager, Teachers Building Society, commented: "As a building society that recognises the needs of teachers it is important that we offer this guarantor scheme which takes into account the difficulties facing teachers in today's housing market. We provide an attractive portfolio of mortgage products including fixed rate and cashback schemes and we now feel we have something to accommodate all levels of teachers from Newly Qualified Teachers and upwards."

For more information on the Teachers Building Society please contact 01202 843 500, Email mike.hislop@teachersbs.co.uk Web:www.teachersbs.co.uk

Mortgages costing up to one-third of pay

Property hotspots are seeing as much as one-third of take-home pay go on mortgage payments, according to a study by the Woolwich, the mortgage arm of Barclays.
Borrowers in the London area of Hackney South and Shoreditch pay the highest percentage of their earnings on their mortgage, with an average 32.8 per cent; this figure represents the average amount over the three-month period from June to August 2005. This is closely followed by Brent East with 30.8 per cent and Vauxhall with 30.6 per cent. Of areas outside London, Oxford East (24.1 per cent) has the highest expenditure. The average payment across England and Wales was 18.7 per cent of take-home pay in August 2005.

Andy Gray, head of mortgages for the Woolwich, said: ‘London has long benefited from relatively high property prices but the downside of this is that in certain areas borrowers are spending a higher proportion of their income on their mortgage payments.
‘The 50 least affordable areas tend to be up and coming neighbourhoods, often in inner cities, rather than those established as having high property prices. For instance, places like Hackney and Brent tend to attract young professionals who will borrow as much as they can to get a property in the next up and coming area. They are hoping that property prices will increase quickly as the area gentrifies and are also confident that as young professionals their earnings will rise quickly to drive down their mortgage payments as a percentage of income.’

Home owners warned of flood risk complacency

The Environment Agency is warning that too many people are ignoring the risk of flooding in this country. New research has revealed alarming levels of complacency among households at risk of flooding from rivers or the sea, despite the increasing frequency of flooding at home and abroad.
Barbara Young, chief executive of the Environment Agency, said, ‘Although we’re unlikely to see flooding in the UK like that caused by the Boxing Day tsunami and Hurricane Katrina, there is still a significant flood threat here from extreme rainfall and coastal surges.
‘Devastating floods do happen here too, like those in autumn 2000, and more recently in Boscastle and Carlisle. There’s a tendency for people to think “‘It will never happen to me”. The fact is it could, we just don’t know when. People in this country cannot afford to be complacent about flood risk.’
Five million people in two million properties in England and Wales live in flood risk areas, yet despite this, Environment Agency research indicates that as many as two fifths (41 per cent) of these people are still unaware of the threat.

The research also revealed that one-third (34 per cent) of people in flood risk areas had not checked whether their buildings and contents insurance covers flood damage and only seven per cent had found out how to get flood warnings. Two-fifths (42 per cent) admitted they would not know what to do in the event of a flood.

What’s currently available for the buy-to-let investor in the new homes market? Johnny Turner takes a look at some good prospects.

An investor with any kind of experience will tell you that there is no such thing as a sure thing. However, some of the traditional vehicles for making profit out of capital are showing themselves to be more effective than others. While these days the stock market is not thought of as the safe pair of hands it once was, bricks and mortar has shown that, while its return is by its very nature variable, it provides long-term upward movement. Even with this year’s price stagnation, a home is seen as a smart place to put money.

Newly built property is a popular investment choice, as it tends to require little of the owner in the way of maintenance. Also, canny investors often buy off-plan, or before there is even a tangible home to inhabit or rent out, as developers tend to test the market with comparatively low prices at that stage. Investors tend to favour apartments but there is currently a wide range of home types on the market in London and the South East that would appeal to buy-to-let purchasers.
Laing Homes is offering Jerome Walk in Enfield, a very popular place to live. This well located development has an attractive mix of one- and two-bedroom apartments and spacious three-bedroom houses. The homes have Bosch integrated kitchens and superb bathrooms – and selected homes offer double shower en suites.

Located close to local amenities and with good transport links – and priced from just £157,500 – these properties are ideal for first-time buyers. Jerome Walk is also perfect for investors; prospective tenants will be impressed by the easy commuter options, with Brimsdown station and the bus terminus just two minutes’ walk away. From there London Liverpool Street is just 26 minutes away, making it the perfect location for busy commuters.

Purchasers have the option to influence the design of the home with Laing Homes’ unique Homestyle service. This allows buyers to upgrade and design their property to meet either their own or those of prospective tenants. Those interested in finding out more about Jerome Walk should call 020 8804 1036.
One area where landlords are unlikely to have trouble finding good-quality tenants is Islington. This is the area of choice for many young professionals who, drawn by the exciting lifestyle the area offers, are looking to rent a home there. The stunning apartments at Tilfen Land’s 101 Islington on Pentonville Road are just the type of properties that the rental market requires.
The location is fabulous for all aspects of the London lifestyle, from travelling to shopping, dining to drinking, arts to parks.

The choice of ways to travel, whether across town or out of town, is very wide indeed. Not only is Angel tube just a few minutes’ walk away, but the same applies to King’s Cross station, which offers access to more Underground lines than any other, not to mention quick and convenient trains to the North. Staying in the area is a wise choice as well, with nearby Upper Street’s selection of literally hundreds of restaurants, bars, cafés and shops, as well as music venue and two cinemas, providing everything the modern lifestyle needs.

The apartments at 101 Islington, crafted from the former offices of the British Standards Institute, have been designed for low-maintenance, contemporary living to a specification unusual in the Islington area. All apartments have underfloor heating, while the contemporary Manhattan kitchens feature Caesar Stone quartz worktops and stainless steel Neff integrated appliances including an American-style double-height fridge/freezer. Bathrooms, including en suites, come furnished with white Ideal Standard by David Chipperfield sanitaryware, full-height mirrors and Vola chrome fittings.
High-tech features include Cat-5e cabling, TV/FM/satellite and BT points are standard throughout. Or there is the option of a ‘plug and play’ IT package which provides a range of options including lighting and curtain automation, surround sound system and home cinema. Along with the entertainment possibilities, this makes working from home simple.
For further information about price and availability contact DTZ Residential on 020 7837 7272.

Docklands is another popular London area where smart investment buyers have been snapping up property. An example of the style and ease offered near the newer Jubilee Line stations is Water Gardens, located on the Rotherhithe peninsula. This stylish new waterside mixed-use scheme provides one-, two- and three-bedroom apartments as well as live/work units – all designed around a central water garden piazza.
The water garden will be the focal point between the six apartment buildings, providing one of the most stylish and attractive new landscaped areas in Docklands, with its reflection pools, lawns, walkways and seating area. Rhododendron bushes, green spire and acer trees, along with a range of other attractive plants and features, will make this a tranquil, green oasis.

Apartments will range in size from 581 to 1,395 sq ft, while live/work units will be between 890 and 1,858 sq ft. Many provide views on to the water of the central garden. All apartments will have bright and airy reception rooms bordered by large picture windows, most opening on to private balconies.
There is direct access from the apartments to a secure car park by lift or stairs. Canada Water tube station is less than five minutes away by foot, giving access to both the Jubilee and East London Lines, while Surrey Quays Shopping Centre is also within walking distance.
Guide prices start at £265,000 for one-bedroom apartments, while two-bedrooms start at £350,000 and three-bedroom apartments with London skyline views are priced from £650,000. For further information call 0845 606 6929 or visit thewatergardens.co.uk.

George Wimpey’s newly built homes are ideally suited to the investor market – the sizes, types locations and specifications Wimpey offers are very attractive to would-be tenants and therefore tempt the buy-to-let crowd. A good example of this investor-friendliness can be seen in its Apex and Avantgarde developments, in Kingston and West Molesey respectively. First, the location of each of these is ideal for the shopping haven that is Kingston, not to mention their proximity to the River Thames and a number of smart restaurants, plus beautiful countryside and a distinctly out-of-London feel.
At Apex, the spaciousness is a serious draw. Not only are the bedrooms generously sized but the kitchen/diner in some of the two-bedroom apartments measure a massive 24’7 x 12’7. Also the two-bedroom apartments have an en suite to the master bedroom – a great asset to a rental property.
In fact, George Wimpey is so confident that the apartments at Apex represent excellent buy-to-let investments that the developer is guaranteeing a seven per cent rental return over a three-year period. So for a £225,995 one-bedroom apartment the guaranteed rental return is £750 per calendar month. At Avantgarde, meanwhile, the developer is offering a five per cent rental return. Prices start at £204,995.
As with all George Wimpey homes, the interiors in both of these developments is stylish, comfortable and relaxed in both developments. And depending on the stage of construction at reservation, items such as carpets, lighting, white goods and many more can be chosen by the purchaser; this gives the investor the chance to style the apartment individually, making it even more appealing to tenants.
Find out more about Apex by calling the sales team on 020 8549 6830. For more information on Avantgarde call 020 8979 8950.

Also from George Wimpey is Aura, a beautifully designed collection of apartments at Peckham Rye. The location, just across from one of London’s most attractive parks, is one of its main draws. With good transport connections to both the City and West End, it will appeal to a wide range of prospective tenants.
This select range of one-, two- and three-bedroom apartments offers modern design and high specification. And the proximity to both ever-improving Peckham and the welcoming bars and restaurants of East Dulwich puts a high-quality London lifestyle within reach.
The show home at Aura is now open. Call 0845 676 0153 for more information. For information on any of George Wimpey’s developments visit georgewimpey.co.uk.

In Ilford, transport is convenient and countryside is also very nearby. The choice of town or country is one of the area’s most appealing qualities. Now with Charles Church’s Valentines Walk, prospective property investors will see a range of possibilities for off-plan buying in a very welcoming area.
Valentines Walk is situated in an established residential area, and the collection of two-bedroom apartments and two- and three-bedroom homes incorporate the highest levels of specification – not surprising to those who are aware of Charles Church.
Buyers have the opportunity to personalise their new home through Select, a range of distinctive options such as granite worktops in the kitchen.
Gants Hill tube is just a few minutes’ walk away, and the Dartford Crossing to the south allows access by road to Kent and the Channel ports for travel further afield. Prices for two-bedroom apartments start at £198,995, ranging to £312,995 for a three-bedroom home. Call Hetherington’s Countrywide on 020 8530 7156 or visit charleschurch.com for more information.

Millgate Homes is selling Hawks Hill, which is comprised of 16 spacious two-bedroom apartments set in three-and-a-half acres of carefully landscaped grounds.
The exacting internal spec includes granite worktops complementing fully equipped kitchens, as well as bespoke fitted bathroom furniture with stone surfaces. The apartments occupy an elevated position and enjoy far-reaching views over rolling countryside to the rear. Another plus is the convenient placement near Leatherhead town centre, ensuring that the bucolic lushness of the immediate surroundings is balanced by proximity to good road and rail connections as well as retail and entertainment possibilities.
This is a prestigious address in the heart of the upmarket stockbroker belt, offering the best of town and country. The show apartment is now open. Contact Patrick Gardner & Co on 01372 360078.
Linden’s Cassio Metro is a natural when it comes to providing high-quality apartments to investors. Its location, in well-connected Watford, is ideal for London commuters; it is a five-minute walk from Watford tube, from where the Metropolitan Line will get you into King’s Cross in just over three-quarters of an hour.

The two-bedroom apartments at the development are a natural choice for the buy-to-let purchaser. The specification is high and the finish very top-quality. Good-quality tenants will be wowed by all the extras that life at Cassio Metro provides: there is the luxury of a private leisure club with swimming pool, spa, sauna and fully equipped gym, as well as a dance and fitness studio and treatment rooms.
Prices for the two-bedroom apartments at Cassio Mansions start at £249,950. There are also apartments remaining at The Penthouses, a stunning collection of two-bedroom duplex apartments with balconies or terraces, where prices start at £340,000. Find out more by calling the show home on 01923 229229 or visiting the website lindenhomes.co.uk.

Home owners are advised to make sure their homes can withstand the cold weather that is just around the corner. The Federation of Master Builders gives some tips on winter-proofing your home

As we enjoy a temperate autumn, it's hard to imagine that lashing rain, storms and freezing temperatures will be with us before long. While your home seems perfectly watertight during the summer, as soon as the weather changes, cracks and leaks could start appearing.
As the nights draw in and winter looms, autumn is the perfect time to get your home ship shape and also to check that you are not wasting energy round the house.
‘Heavy rain, frost and snow could cause untold damage to your home if it's not in good order,’ according to Ian Davis, director general of the Federation of Master Builders. He adds that a lack of basic energy efficiency measures, such as roof and cavity wall insulation, double glazing, an insulating jacket on your hot water cylinder or a condensing boiler, could be adding pounds onto your running costs.
The average household in the UK wastes £250 a year by not being energy-efficient. Insulation and glazing are two key areas where heat loss is greatest and nearly 50 per cent of all heat loss in the average home is through the loft space and walls.
Most houses lose 25 per cent of their heat through the windows, around 20 per cent through ventilation and draughts and around 20 per cent through poorly insulated window frames and single glazing.
Here are some quick ways of saving that wasted energy:

Installing cavity wall insulation reduces heat loss through the wall by around 60 per cent and reduce annual heating bills by £100–£120.
Insulating your loft to the recommended depth of 270mm (10 inches) can save over a third of your heating costs.
Installing double glazing can halve the heat loss through windows. If you can't afford to replace all your windows, choose the rooms that cost the most to heat.
Invest in draught excluders for doors, windows and letterboxes opening on to the outside. Close curtains at dusk to stop heat escaping.

Water flowing in the wrong places is one of the main causes of harm to a home over the winter period and can cause significant problems in a short space of time. Autumn is the time to start making sure gutters and drains are free of leaves and rubbish and that there are no leaks or cracks in your drainpipes and guttering.
It pays to inspect your home for clues to trouble spots on a regular basis, whether the house is new or old. It's worth keeping a note of where you have heard rattling windows or seen peeling paintwork, broken tiles or dripping pipes. If problems such as damp are caught early, significant savings can be made.
Your home will often provide you with the clues you need to assess potential problem areas. If your windows have been rattling this summer, make sure they are properly secured and fit a draught strip if necessary. Peeling paintwork could be an indication of rotting wood underneath, while crumbling brickwork may need urgent attention and dislodged roof tiles can cause untold damage if not replaced before winter arrives.
Stains on walls, plant growth or moss around pipes and gutters are clues that your gutter or pipes may be leaking. Check that drains and gullies are carrying away water effectively. It's also worth checking the security of fixings. A few minutes spent clearing weeds and debris, or just a few pounds spent to mend a leaky gutter, can save many hundreds and possibly thousands of pounds. It may be worth cutting back any tree branches that are shedding leaves into your guttering.
It's also worth remembering that keeping your property in good order is essential, not only for you, but also because you will be responsible if something from your property, such as a falling roof tile or a piece of guttering causes damage or injury to passers-by or neighbours.
Practical-minded homeowners can probably tackle smaller jobs over the next few weekends, but if you need to replace guttering or roof tiles, then it's worth seeking the help of a professional.

The Federation of Master Builders, the UK's largest building trade organisation, offers a list of thousands of approved builders and can help you find one in your area. Simply visit findabuilder.co.uk or call 08000 152522 for details of local members.

Mortgage lending up

Mortgage lending gained pace in August, according to the British Bankers’ Association (BBA), and this has been taken as a sign that the worst of the housing market slowdown is over.
Underlying mortgage lending rose by £4.3 billion last month, according the BBA’s report; this figure has been seasonally adjusted. The figure is a vast improvement on July’s £3.7 billion and is on an even keel with the monthly average of £4.4 billion of the last six months.
In a separate report the Council of Mortgage Lenders (CML) said gross mortgage lending (excluding redemptions) rose by nine per cent in August to £27.5 billion, the highest amount since July last year.
The rise was mainly driven by remortgaging, the CML said.

Price decline at lowest in a year

House prices continued to fall in August, according to the Royal Institution of Chartered Surveyors (RICS). However, declines were the smallest for a year and support an overall picture of a stabilising market. Chartered surveyors reported that the pace of price falls eased across the country, with modest rises still evident in Scotland.
Completed property sales rose for the second month running, which suggests that a degree of confidence is returning to the market. In addition, enquiries from would-be buyers rose for a third consecutive month, up at the fastest pace since January 2004, as the August interest rate cut provided a lift to confidence.

Investors returning to market

Investors have come back to the new homes market during September, heralding a revival in the housing market and avoiding a repeat of last year’s autumn market ‘hibernation’, reports house builder Linden Homes. Research carried out by Linden shows that reservations of new homes across the UK during the first two weeks of September this year stood at 2,196, compared with 1,484 during the same period last year, a 47.9 per cent increase. A staggering 83 per cent of Linden’s units in key Sunningdale and Dorking sites last week were sold to investors.
Philip Davies, Chief Executive of Linden Homes comments, ‘I am encouraged by the numbers of investors returning to the market this September and making reservations. Professional landlords with plenty of cash have held their nerve over the summer but many were choosing not to expand their portfolios until now. They are investing for the long term and are not expecting a return to the house price inflation of previous years.’

2005’s widely predicted housing market crash has failed to materialise and instead the market appears to be heading for an autumn resurgence, as fears of sizeable drops in house prices subside. House hunters are now expecting prices to remain broadly stable into 2006 – and this has caused a noticeable change in attitude amongst buyers.
August’s reduction in interest rates to 4.5 per cent has restored faith in the market to some extent, especially for first-time buyers who feel more confident taking on their first mortgage at the start of a probable downward trend in rates.
‘The combination of a more realistically priced secondhand home market and a general lowering of expectation regarding sale prices mean we can look forward to the market gathering momentum over the autumn period,’ says Davies.

Jeremy Leaf, Housing Market Spokesman for the Royal Institution of Chartered Surveyors, offers some guidance about choosing and using a surveyor.    

Making the most of your surveyor
 
Q    How much should a surveyor cost? Is there a national standard rate?

A    There is no national standard rate for services provided by a surveyor. Each surveyor sets their own charges and the cost of carrying out a RICS HomeBuyer Survey and Valuation or a Building Survey will normally be related to the size or value of the property.  Surveyors will usually set their charges having regard to the fee structures of other professional practices in the area but it is worthwhile comparing costs and ascertaining the services on offer.
 
Q    How do I find a surveyor?

A    The Royal Institution of Chartered Surveyors can assist you in finding a surveyor in your area who provides the services you are seeking either via their website on www.rics.org  or by telephone on 0870 333 1600. Alternatively it is a good idea to obtain recommendations from friends or relatives who have recently used the services of a surveyor.

 
Q    Should I use a lender's valuation surveyor for any extra reports? Why or why not?

A    Using a lender’s valuation surveyor for extra reports can be a way to reduce costs as many, but not all, valuers will be able to carry out a private survey for the purchaser at the same as providing a valuation for the lender. Employing two separate surveyors is likely to be more expensive.  However, some purchasers prefer to have sight of the valuation report prepared for the lender before deciding to proceed with the purchase and committing themselves to further expense. If the lender’s valuation is substantially below the agreed purchase price or major defects are found the purchase is likely to prove abortive and any money spent on a more detailed survey will have been wasted.

 
Q    Should I use a surveyor recommended by my estate agent? Why or why not?

A    Chartered Surveyors have a duty of care to their clients but there is a perception among some purchasers that a surveyor recommended by the selling agent may be less critical of the property being inspected than one who has no contact whatsoever with the agent. Furthermore, some purchasers are wary of their surveyor discussing the results of the survey with the selling agent. Some buyers stall for time by blaming delays on their surveyor being “booked  up for weeks”.  The selling agent would prefer to have contact with the surveyor to monitor exactly how the sale is proceeding.  In most cases it is best to ensure that there is no possible conflict of interest.

 
Q    What should people expect from a surveyor?

A    Before instructing a surveyor it is important to establish the exact nature of the service being provided so that the client’s expectations are adequately met.  The client can certainly expect the appointment to be made, the survey carried out and the report prepared within a reasonable and usually previously agreed time scale. Some clients like to meet the surveyor at the property during the survey to discuss defects found or to speak to the surveyor on the phone soon after the inspection.  Not all surveyors are happy to do this and may only be prepared to have a discussion with the client after the report has been prepared. The client needs to clarify the level of communication which will be provided.
 
Q    What should people think about before getting a surveyor?

A    Before getting a surveyor the client needs to think about what they expect to achieve by commissioning a survey and how detailed the information about the property being purchased needs to be. Some clients want to be told about every single minor defect down to a loose door handle or missing bath plug whereas others only want to know whether there is a serious major defect.  The type of survey being commissioned will depend on the level of detail required as well as the type and age of the property.  An initial discussion with the surveyor should help the client in deciding how to proceed.

 
Q    What should I ask my surveyor before contracting one?

A    Before contracting a surveyor to act for you the client should ask whether he has experience of carrying surveys of the type of property being purchased in that location and will be able to meet any required deadlines.  In some cases a surveyor finding a major problem will contact the client and ask whether they wish him to proceed with preparation of the report. If no report is required due to the purchase not proceeding a reduced fee may be payable but this needs to be clarified at the outset.

 
Q    What are the common complaints or problems with surveyors experienced by homebuyers?

 A    Common complaints experienced by home buyers are often the result of lack of communication or a misunderstanding regarding the amount of detail which will be provided in the survey report.  Some defects present in the property may have been covered by carpets or furniture at the time of the inspection but become all too apparent when the property is vacated. The test is really whether a reasonably competent surveyor could have identified the defect at the time of the inspection or could have been aware of a potential defect requiring further investigation. In many instances advice given by a surveyor is ignored by prospective purchasers because they are so keen to proceed with the purchase.  

Q    What can people do if they think they have had bad service from a surveyor - is there a complaints procedure?
A    If people do experience bad service from a surveyor they should initially contact the surveyor’s practice which should implement its complaints procedure. This will normally involve another member of staff or an associate investigating the complaint to ascertain whether it is a valid one.  If a client is still not satisfied they could contact the RICS which can instigate a mediation process.  In most cases the matter can be resolved between the parties in this manner but in some cases the clients will wish to exercise their legal rights in the courts.

 
Q    Finally, what three key questions should I ask my surveyor?

A    The three key questions to ask a surveyor before giving instructions are :

Are you qualified to carry out the work required ?
When can you carry out the work ?
How much will it cost me in total ?

The best way to get a surveyor to be too busy to help you is to ask “Can I sue you if you make a mistake ?”

Recovery linked to rate drop

One month after the Bank of England lowered interest rates to 4.5 per cent the market is already showing signs of a recovery, according to the latest figures from the National Association of Estate Agents (NAEA). Following August’s decrease, the first in over two years, consumer confidence is rising once again. Both the number of buyers and the number of sales were up in August. The number of houses on estate agent’s books also increased as sellers regained confidence in the market.
Agents reported that the number of house buyers on their books rose 4.6 per cent in August, from 350 to 366 per agent, demonstrating renewed consumer confidence as the holiday period reached its peak.
Sellers also demonstrated increased confidence as the number of new instructions rose 3.7 per cent from 13.6 to 14.1, with the number of houses available increasing 40 per cent, from 55 to 77 per agent. The 2005 housing stock figures were also up on the same time last year, when an average of 61.4 houses were available per agent, in a further sign that consumer confidence is returning to more normal levels.

The number of sales agreed increased by ten per cent between July and August, from ten sales per agent to 11. With sales figures now at similar levels to those of August last year – when agents reported an average of 10.7 sales – it seems that the market is indeed getting back on track.
However, while numbers were generally up in August, buyers were still demonstrating a degree of caution when choosing property. The number of viewings before a sale remained steady at 15, up from 13 in August 2004, and the number of weeks between instruction and exchange also remained fairly consistent, with a slight rise from 19 in July to 19.6 in August.

Council tax revaluation postponed

The government has shelved plans to revalue homes for council tax purposes until after the next General Election. The revaluation was supposed to be in place for April next year. David Miliband, local government and communities minister, denied the move was a political ploy aimed at avoiding fallout from expected rises just before local elections.
Council tax was put in place in 1991, and with the steep rises in property prices since then the figures now look grotesquely out of date: band D, for instance, applies to properties that were then worth between £68,001 and £88,000.
Peter Bolton King, chief executive of the National Association of Estate Agents, said: ‘The NAEA was pleased to hear the decision to delay the revaluation of council tax. This has clearly been causing concern to a number of people who will feel relieved that the threat of increased council tax payments has been lifted.’