Buying, selling and letting - Friday, June 16, 2006

Whether you are buying a new house of simply re-mortgaging, a good mortgage advisor can save you stress and hassle, not to mention large sums of money. Not all advisors are equal though, so here's our guide to finding the right advisor for you.

How Independent Are You?

It's reasonable to assume that an independent advisor can offer you access to any lender on the market. However, this is not necessarily so. Many brokers that describe themselves as independent will actually work from a panel of different providers that are representative of the market. Truly independent mortgage brokers that can deal with any lender will therefore often describe themselves as 'whole of market'.

Which Lenders' Products can you offer me?

If a panel is being used, find out how many lenders are on it. Anything less than 10 is no good. Larger panels should be sufficient for most borrowers, and, in many cases, lenders may offer preferential service to the broker. It's worth asking whole of market advisors how many different lenders they have used in the past year. Around 70 is a reasonable answer.

What Level of Service do you Provide?

Before you commit to a broker, get them to talk you through the process from start to finish, and find out whether they will make an actual recommendation or only provide information. Those offering the most comprehensive service will help you through the application process and be on hand to assist you right the way through to completion.

How do you Operate?

Mortgage advisors operate over the phone and face-to-face. Both work well, so your choice will ultimately come down to personal preference. The important point is that they are easy to get hold of and that you understand their advice.

Are you Regulated by the Financial Services Authority?

When you buy a mortgage with advice, the FSA states that you have a right to expect the advisor to only recommend products and services that are suitable for you. If the recommendation is unsuitable, based on the information you provide, you can complain to the firm and expect compensation for any loss. Reputable advisors should declare this straightaway. However, if you are unsure, check on the FSA's mortgage website - www.mortgageslaidbare.co.uk

How will you be Paid?

Some mortgage advisors will charge a fee for their service - typically, around 1% of the sum you are borrowing. Others don't charge you at all and are instead paid a commission by the lender whose mortgage you buy. Some borrowers prefer to pay a fee as it means there's no incentive for advisors to push loans paying the highest commissions. However, following the introduction of tighter rules surrounding the sale of mortgages and steep penalties for those that break them, borrowers should not feel unduly concerned about using commission-earning advisors.

What other services can you offer me?

A good advisor will recommend protection such as life cover and home insurance when you take out a mortgage, because it's important to be adequately coverer. But it's not uncommon for a broker to be whole of market in terms of the mortgage providers they use, but tied to recommend one particular provider for other services. If you are not happy with this, there's no harm in shopping around for these extras yourself.

What can you offer me that a lender can't?

This question may stump some mortgage advisors, but ultimately there are distinct benefits of using a broker over going direct to the lender.  These include impartial advice, access to the most suitable and competitive deals on the market, and assistance through the application process and beyond. Advisors will also often negotiate special deals which wouldn't be available direct from the lender, and your legal or valuation fees could be refunded too.

Why are you offering me this product?

This question shouldn't really need to be asked - if the advisor has listened to you requirements, the recommended mortgage should clearly reflect this. Brokers are required by law to give written confirmation explaining their proposal, but it's always worth asking them to talk you through their reasons first, just to check they have understood your needs.

What Next?

So you've listened to their advice and taken out a mortgage, but this doesn't mean the end of the relationship with your mortgage advisor. The service will often be a one-off, but many advisors will offer ongoing support and get in touch with you when your special rate expires and you're due to re-mortgage.

As the buying season gets into full swing, we look at the must-attend autumn event for those interested in investment property.

More and more people dream of making money through property – and whether you’re looking for a quick buck or a longer-term investment vehicle, bricks and mortar has proven in recent years to be the best means to a good return. With the recent cut in interest rates and prices at a competitive level, the current buyers’ market means it is an ideal time to snap up a bargain. But where is the investor to find the right buy? That’s where the Property Investor Show comes in. Aimed at both budding and established investors, the Property Investor Show is an ideal forum for anyone interested in property. Held at London’s ExCeL Centre, it is the largest event of its kind, providing information on everything from investing in the UK and abroad, to financing a property and this year’s hot topic, Self Invested Personal Pensions (SIPPs).

This year’s exhibition boasts over 200 exhibitors, including top house builders, estate agents, lenders and brokers, solicitors, surveyors and other leading property experts from throughout the UK and overseas. Over the three days there will also be more than 100 expert seminars covering topics such as international property, risk and reward from property investment, and diversifying your portfolio for commercial and overseas property.

With SIPPs rules set to change in April to allow a residential property portfolio to be counted towards a person’s pension fund, many of us would like to know more about the ins and outs of this new policy and how it can benefit us. And many of the show’s exhibitors will be able to offer advice on how best to invest pension funds in residential property in the UK and overseas. ‘SIPPs are the biggest bandwagon in the property and personal finance sectors,’ says Stuart Law, managing director of Assetz, the UK’s leading investment specialist, who will be exhibiting at the show. ‘And this inevitably leads to a lot of people trying to get involved who don’t fully understand the area.’

Now is a perfect time to invest, trade up, expand your portfolio or get a first foot on the property ladder. And with so many industry experts on hand, there is no better place to do your research and understand what the future holds than at the Property Investor Show, to be held Friday 23 to Sunday 25 September at ExCeL in London Docklands. Visit propertyinvestor.co.uk for more information.

House prices rose in August to an average of £165,967, following a base rate cut at the beginning of the month, says Halifax. However, annual price inflation is still falling, according to the nation’s largest mortgage lender. Prices rose by 1.6 per cent over the month, which is a dramatic rise on July's figure of 0.4 per cent. This represents the biggest month-on-month gain in the last 12 months.

Market activity also picked up during August, with the number of mortgages offered to buyers continuing to increase month-on-month. According to the latest Bank of England figures, when seasonally adjusted, the number of loans agreed during the month was 26 per cent higher than in November last year.

Martin Ellis, Halifax's chief economist, said, ‘This pick-up in monthly house price inflation is consistent with the continuing upward trend in market activity in recent months and the previous pattern of house price movements when the Bank of England begins to reduce interest rates,’ he said.

But despite the increase in prices and activity, said Ellis, properties were worth only 2.5 per cent more than in August 2004. This marks a significant downward trend in underlying price inflation over the past year from an annual rate of 21.3 per cent last August.

While in the first eight months of 2004 prices increased by 12.5 per cent, over the same period this year they were up just 2.1 per cent.
Mr Ellis said prices were unlikely to surge in the near future, but the growth in the UK economy and earnings, and high levels of employment all supported housing demand.
"The ongoing growth of the UK economy, robust earnings growth and historically high levels of employment all underpin the housing market," he said.
"The slowdown in economic growth in 2005 and the high level of house prices in relation to average earnings will, however, continue to curb housing demand and should prevent a renewed surge in house prices."

Halifax's figures contrast with those published by other housing market commentators. Nationwide building society, for example, said house prices had fallen by 0.2 per cent over the month, while Hometrack recorded a 0.1 per cent fall.
Howard Archer, chief UK economist at consultancy Global Insight, said: "The 1.6 per cent month-on-month jump in house prices in August reported by the Halifax is a real surprise.
"However, there are often significant fluctuations in house prices on a monthly basis and we do not believe that it is a sign that house prices are about to start moving back up strongly."
"It is clearly still very much a buyers' market, as the supply-demand balance is currently slanted markedly in their favour. Consequently, many sellers are reported to have become more realistic in their pricing."

A survey of consumers carried out by Nationwide suggested that confidence in the housing market has also been boosted by the base rate cut.
It said that while consumers were less certain about the current economic situation than they were in July, with the number who thought there were plenty of jobs currently available falling, confidence about the future had grown.
In August, consumers forecast that house prices would rise by 2.9 per cent over the next six months, compared with a forecast of 2 per cent in July.
"The figures illustrate that whilst consumers are uncertain about the current economic situation, they have become more positive about how the future will unfold," said Nationwide's executive director, Stuart Bernau.

"August's rate cut appears to have boosted sentiment and it will be interesting to see how they behave over the coming months."
While the rate cut appears to have boosted confidence in the housing market, it has not yet had an impact on the cost of servicing a mortgage, according to figures from mortgage lender the Woolwich.
It said that among Barclays and Woolwich's current account customers mortgage repayments accounted for 18.7 per cent of a homeowner's disposable income in August, with the average monthly mortgage repayment coming in at £512.
These figure are actually slightly higher than in July when repayments averaged £502 and accounted for 18.4 per cent of income.

Andy Gray, head of mortgages for the Woolwich, said the figures showed that many customers had not benefited immediately from August's rate cut.
"Following the cut in interest rates at the beginning of August most variable rates were cut at the beginning of September and many people are on fixed rates which will not change, and therefore will not have impacted the August data."
"Also our own research indicates that July/August is the most popular time for people taking out new mortgages, and so there are a disproportionate number of people coming to the end of their existing term product.
"Many either go onto a standard variable rate or remortgage with products that are currently at higher rates than when they took out their original loan, or last remortgaged. This leads to higher payments and hence pushes the mortgage affordability ratio upwards."

Six months since the Chancellor announced a doubling in the 0 per cent Stamp Duty threshold from £60,000 to £120,000, new figures from Nethouseprices.com reveal dramatic movement in the lower end of the property market as a result.

In the period April – June 2005, sales of properties priced from £100,000* to £120,000 rocketed to 23,811 compared to sales of 15,492 in the previous quarter (January to March). Taken against the same quarter in 2004 this is a rise in sales nationally of 8,319 in this price bracket.

Not surprisingly, sales in the bracket of £120,001 to £150,000 where Stamp Duty is levied at 1 per cent have been more in tune with market. There were 9,284 more properties sold in April to June than in January to March, but 1,829 less than in the same quarter in 2004. The average price for a house in England and Wales is currently £178,899.

Catherine Brassington, Managing Director of Nethouseprices.com comments: “It is clear that the increase in the Stamp Duty threshold has fired up the lower end of the market significantly, and as a result it is the fastest growing area of the property market. These changes, however, have not made any difference at all to the middle market (£120,001 - £250,000) which accounts for nearly three quarters of all sales nationwide.”

Don’t be seduced by short-term mortgage spin, warns David Jones, commercial director of First Active

For many home buyers, taking a long-term view on their mortgage doesn’t rank top of the list of priorities when it comes to moving house. Often people seek out the cheapest initial deal available and commit themselves to it without giving it another thought. But by spending just a little time looking more closely at what lenders are offering, you could save thousands of pounds down the road once your initial deal comes to an end.

The mortgage market is more competitive than ever with some lenders offering rock-bottom discounts for initial periods to entice customers to sign up. Terms and conditions vary, but the common thread is that discounts don’t last forever. Most expire after two or three years, after which you are likely to be automatically switched to the lender’s higher standard variable rate (SVR).
But by taking a little more time now and knowing what to look for, you should be able to make sure that your mortgage choice is right for not only the next two or three years but beyond that too. Here are a few tips to help you avoid some of the most common lending traps.

Avoid expensive tie-in periods

In today’s market, planning what you will do after the discount period is over is just as important as finding a good initial deal, whether it is a discount or fixed one. Many of the most attractive offers can have lengthy tie-in periods that extend beyond the discount period when the loan reverts to the higher SVR. Most initial deals have a tie-in period, so make sure that the one you choose only ties you into the time for which the discount runs.
Remember, you are likely to be paying the higher SVR for a longer period than the initial discount. A mortgage with a lengthy tie-in can actually work out to be more expensive than if you had started on a higher rate with no tie-in period. You could also end up paying a hefty repayment or cancellation fee if, in a couple of years’ time, you decide to remortgage during this period – even if it is with a product from the same provider.
Therefore, you should ensure that you compare the total repayment costs against other deals over the length of the tie-in period – and not just the initial offer rate – to see how it stacks up over the long-term. More and more ‘best buy’ tables are being published that show the total repayment costs so you should be able to find this information relatively quickly.

Don’t be penalised for your loyalty

Switching mortgages is easier than ever, but many home owners still believe it is too much of a hassle and fail to take action even after their deal period ends. Some recent First Active research found that only a third of home owners will bother to look at the rate they are going to be paying when their initial offer runs out! Lenders capitalise on this lethargy by effectively using their higher-rate SVR borrowers to subsidise the discounts they offer new mortgage applicants. Many high-street lenders have deals that are only offered to new customers and not existing ones. Look for lenders such as First Active who offer all their deals to all customers – existing and new. After their discount period ends, First Active customers can choose whether they go onto the very competitive long-term rate or move to another great deal.

Be aware lenders who charge excessive up-front fees

Lenders charge a variety of fees for new borrowers to cover arrangement, legal, valuation and administrative costs. You should look carefully at what lenders will charge you to arrange a mortgage. Some of these costs have skyrocketed in recent years, with some lenders charging up to £700 for an arrangement fee. These high up-front costs can, in some cases, cancel out the benefits of a lender’s initial offer. At First Active we aim to keep things simple by charging a flat fee of £399 across all our mortgages, up to 90 per cent loan to value (LTV). So make sure that you look at the arrangement fees offered by lenders and factor this into your overall calculations.
Whether you’re remortgaging or taking out a new loan, make sure you understand all the fees involved. If you are remortgaging, First Active does not charge for any basic legal or valuation fees, but terms can differ between providers, so make sure you check your lender’s details.

Mark your calendar now

Shopping around for a new mortgage once your discount period ends might sound like a no-brainer, but First Active’s survey showed that nearly two-thirds of home owners don’t know what rate they are going to pay when that time comes around. Failure to do anything could see them having to fork out much more on their mortgage than necessary as they move onto their lender’s SVR.
It might sound like a long way off, but the end of your discount period will come knocking before you even realise the time has passed. Keep your eye on the mortgage market and make a note in your diary to contact your mortgage adviser and start shopping around for a better offer three to six months before your discount expires so you are ready to switch when the time comes.

Shop around

The Internet has made it easier than ever for home owners to shop around and find the best mortgage to suit their needs. Some lenders can even provide an indicative offer for new borrowers online.
The money pages of the national papers and the internet are good sources for ‘best buy’ tables featuring the latest deals across a range of mortgage products. This enables you to see how your lender stacks up against competitors. Before committing to a mortgage be sure to check the small print for hefty charges or expensive tie-ins, and remember to factor these costs into your comparison.
Independent mortgage advisers are a great source for face-to-face or online advice. They can guide you through the mortgage jargon, help you organise your borrowing priorities and suggest a variety of mortgage products to suit your needs, as they will look across the market at what’s on offer.
No matter how frantic the home buying and moving process might be, making the time to do your mortgage homework can mean big savings down the road, leaving you more money to spend on your home in the years to come.

David Jones is commercial director of First Active, the low-cost lender that aims to simplify the mortgage process by offering fair, jargon-free mortgage products for everyone

Owning abroad gains in popularity

Today's investment-savvy holiday home purchasers rank rental income as the primary purpose of a holiday home abroad, according to new research from property investment specialist Assetz. A staggering 60 per cent of those 50,000 investors and non-investors surveyed cited rental income as the most important factor when buying overseas, with a further 21 per cent claiming a home for their retirement was their top priority, followed by just 19 per cent who wanted to use the property purely as a holiday home.
Letting international holiday homes is a relatively new trend that has only taken off significantly in the last three years. Previously there was a certain amount of stigma attached to renting a holiday home out on the open market, but today's financially aware purchasers are more likely to be embarrassed by failing to make their investment work for them.

Making a success of holiday lets has meant the second homes market is booming, no longer the preserve of an exceptionally wealthy minority who can afford to own a second property outright or cover the mortgage from another source. The investment angle is becoming more important to British holiday home owners as a significant proportion of their household assets may be tied up in the purchase. By renting out their properties for part of the year, those on more moderate incomes have been able to access the second home market, generating enough revenue to cover the mortgage while enjoying holidays when it suits them.

The majority of those surveyed (54 per cent) would spend under one month in the property throughout the year, demonstrating the commitment of purchasers to protecting high rental yields.
Stuart Law, managing director of Assetz comments, ‘There is a tremendous benefit in being able to own a second property, use it for holidays, enjoy capital gains in most overseas hotspots and also generate an additional income in return. The second home revolution means it is no longer the domain of the rich, but also of the financially savvy who make sure their investments stack up.’

Politics and the housing market

The national political scene has a far greater influence on the residential property market than its local counterpart, according to a new survey. While local politics has an undoubted impact on the levels of council tax around the country, it is far less influential when it comes to prospective home buyers’ decisions, house prices and planning policy.
These are among the findings from the latest national property survey by Home Sale Network, the UK’s leading network of 750 independent estate agents.

A large majority of members responding to the survey (86 per cent) say that prospective buyers are not concerned with the makeup of local councils. Meanwhile, not a single member reported that a local authority’s political makeup is among the main concerns for buyers, with the remaining 14 per cent saying it is one of many factors to be weighed up when buying a home.
Similarly, local politics and the party political leadership of local councils has no effect on house prices, according to 91 per cent of Home Sale Network respondents. Only four per cent of members believe the political scene can have a positive influence on house prices, while a similar percentage – three per cent – say the local governments’ impact can be negative. Some two per cent say the uncertainty caused by a ‘hung’ council can influence local house prices.

Meanwhile more than half – 51 per cent – say it is national politics and the makeup of central government which affects planning policy, regarding house building around the country. However, almost 18 per cent believe house planning is determined by purely market-driven, non-political issues.

The north side of the capital is constantly in high demand for new home buyers. Johnny Turner finds out why.

Today’s buyer demands a lot from a home – and from the area in which the home is located. Those who buy in north London get immediate access to the best the capital can offer. With the high level of quality of the newly built homes that are currently on the market, they are also in line for a low-maintenance place to live as well as a wonderful investment.

Brief mention:

The Grange will provide an exclusive collection of homes set in mature landscaped gardens. There will be a variety of designs from conversions of the existing hospital buildings into stunning apartments to three and four bedroom townhouses reflecting the styles of a bygone era, all set behind a gated entrance with uniformed concierge.
The specification gives a real sense of quality. From contemporary fitted kitchens with stainless steel ovens, hob, chimneys and granite worktops to stylish living rooms; with stunning bathrooms and en-suites that have fitted vanity units and heated towel rails to master bedroom suites, some of which also boast a dressing room and all of the homes are pre-wired for satellite TV.
Only sixteen miles from the heart of London, Harrow offers an abundance of entertainment and leisure pursuits. For shopping, Debenhams and Marks & Spencer are amongst the High Street names to be found along with specialist stores, stylish coffee bars and cafes. Harrow also boasts one of the finest collections of state and independent schools.
For getting about, The Grange is ideal. From South Harrow station on the Piccadilly Line, trains run to Leicester Square in around forty six minutes, whilst from North Park NR station trains to London Marylebone take around twenty one minutes. The A401/M40 is also accessible for the national motorway network.

St James Homes (North Thames Region) is proud to announce an exclusive new rent-free living offer at its flagship New River Village development situated in Hornsey, N8. Subject to terms and conditions, off-plan purchasers in the latest phase at the scheme, The Emerson Building, will be offered the opportunity to live rent free in one of the completed properties at the development whilst their home is being built.

New River Village is the re-development of a 15–acre former Thames Water site into a scheme of 622 studio, one and two bedroom apartments. All of the apartments at New River Village are situated in a series of strikingly modern buildings, which have been carefully designed to complement the surrounding urban landscape

As part of the scheme, St James Homes has also sensitively converted a red brick Victorian pumphouse into a contemporary art gallery, which will exhibit works from Royal Academy of Arts Schools. The building will also include a The Pumphouse Dining Bar that will be open to both residents and the general public, launching on 22nd June 2005.

To celebrate the launch of the restaurant, the unveiling of the Trajectory sculpture within the grounds of the development and the opening of a new exhibition in the Art Gallery, St James Homes is inviting guests to New River Village for a culture weekend on the 25th and 26th June. The weekend will include live music, entertainment, a prize draw for a weekend for two in Paris and a complementary drink and is available for all to enjoy.

For further sales information at New River Village, or for further details about the cultural weekend, please contact the sales & marketing suite on Tel: 020 8347 4139 or visit newrivervillage.co.uk.

A stunning new show duplex will be launched next month at Britannia Walk, Old Street, N1, the latest 32 unit scheme by Goldcrest Homes – the property developer with a fantastic reputation to build luxury new homes. Britannia Walk is ideally located for City workers who can walk to work in five minutes rather than tackling long journeys by public transport. It is also just two minutes from Old Street underground and main line station allowing easy access to the rest of London and the South East.
The 1,000 sq ft duplexes are exceptional value for money - 8 per cent cheaper than ‘normal’ apartments of identical size within the same area. Their value relates to the flexible live/work planning permission granted to the duplexes, making ideal residences for people who need to continue to work in the evenings or perhaps have the flexibility for working from home for a few days a week.
The flexibility of the planning permission states that the occupiers are not obliged to work from home for any designated time, it solely stipulates that the designated work area can not be used for residential purposes. This allocated area has all the sockets and cables needed for a fully functioning desk with sockets for broadband access and telephone and plenty of power points to enable owners to set up a computer and printer.

David Steer, Development Director of Goldcrest Homes comments: ‘Britannia Walk’s duplexes offer the perfect solution for modern living, providing a flexible home with a designated work space either for occasional or daily use. The spacious duplexes, finished to our extremely high standard, reflect true value for money in the popular Hoxton area’.
Beautiful walnut finished doors and timber laminate flooring create a welcoming entrance to the duplex. The ground floor features a modern custom-designed contemporary kitchen, lit by feature lighting with a stainless steel sink, glass splash back and mixer tap. The latest integrated appliances are also included as well as an Electrolux fridge/freezer and dishwasher.
Leading from the kitchen is the large open plan living area which incorporates the designated work zone and can be divided according to the owners wishes. A funky spiral staircase leads up to the upper floor where there is a master bedroom, with en suite, a guest bedroom and a separate bathroom. All bedrooms at Britannia Walk include wiring for cable TV and fitted pure wool carpets as well as fully fitted wardrobes. The luxury bathrooms are supplied with beautiful Porcelanosa sanitary wear, including the contemporary ‘sit on’ basin with timber stand and a stylish heated chrome towel rack. Showers are walk in and baths, where provided, feature a pull out hand held shower. Goldcrest Homes have also ensured that no precious space is wasted by installing economical electrical heating units on the rooms’ ceilings.

All 18 duplex and 14 one and two bedroom apartments at Britannia Walk share the superb facilities provided by Goldcrest Homes for all residents which include a concierge, a communal landscaped roof terrace, a spectacular movie suite with seating for up to 16 people and a fully air-conditioned private gym. All residences have video entry phones and burglar alarms and the development’s entrances and reception area are monitored by CCTV cameras. Parking spaces and garages are also available at an additional cost.

Residents at Britannia Walk can benefit from the close proximity of trendy Hoxton - home to the media loving galleries of Hoxton Square: White Cube, White Cube², Store and the Art Space gallery. Lovers of edgy bars are in perfect location for trafik, bluu and the Hoxton Square Bar and Kitchen where you are bound to rub shoulders with other urban trendies. For food Brick Lane with its array of Asian restaurants and hussle and bustle is just 15 minutes on foot, perfect for a late night curry after a night out on Old Street.

Islington is also a mere ten minute stroll from Britannia Walk, a young vibrant area with north London’s highest concentration of cafés, restaurants, bars and clubs. Buzzy Upper Street has individual boutiques, cafés and high street chain stores as well as the Business Design Centre, home to a year-round flow of exhibitions. Culture vultures are also well catered for with the famous Almeida and Pleasance theatre, the King’s Head and a range of comedy nights held in a number of local pubs. Or for football lovers Arsenal’s home ground at Highbury is close by.

Prices at Britannia Walk start at £350,000 for a one-bedroom apartment. Further information is available from Britannia Walk’s selling agent Currell New Homes on
020 7241 4111 or visit currell.com or goldcresthomes.co.uk.

Demand for just four one-bedroom apartments – priced from under £150,000 – is expected to be high when Intro Homes starts taking reservations for its Victoria Green development in Edmonton on Saturday 21st May.

The 32 apartments in the first phase will be some of the most affordable brand new homes in London, with prices from £149,950 for one-bedroom apartments and from £179,950 for two-bedroom apartments. Intro Homes is also helping buyers with their deposit and legal fees, making purchasing easier.

The 174 homes by Intro Homes in Victoria Green are an important part of the striking transformation of Edmonton Green. The area’s dated shopping centre is to be replaced by a new shopping mall, ASDA supermarket and a gym/health club, all within easy walking distance of the development.

Despite the keen pricing of Victoria Green, design and build quality are not compromised. Attractive detailing includes turrets and balconies – a style in keeping with the nearby Church Street conservation area. All apartments come with a parking space and the contemporary interiors have the features that London’s demanding homebuyers expect, including gas central heating and kitchen appliances in a stainless steel finish.

The development is well located for commuters into the City, given the adjacent Edmonton Green station and a journey time to London Liverpool Street of just over 20 minutes.

The first phase of apartments will be launched on the weekend of Saturday 21st and Sunday 22nd May. Buyers can register their interest by calling Site Sales on 08700 55 20 75 or by visiting www.introhomes.co.uk. A sales information centre on Victoria Road, Edmonton, is open from Thursday through to Monday every week from 10am to 5pm.

Landlords prefer to avoid court

The latest survey information from the National Landlords Association (NLA) shows that when things don’t work out with a tenancy, landlords prefer to sort things out amicably rather than resorting to the legal rights conferred by the Assured Shorthold Tenancy (AST) agreement typically used between landlords and tenants.
More than half (56 per cent) of landlords said that they had used the ‘softly, softly’ approach, successfully persuading an unwanted tenant to leave without recourse to the courts.
The NLA’s chairman, David Salusbury, comments: ‘There’s a variety of reasons why landlords may want tenants to leave. Non payment of rent, not looking after the property, causing a nuisance to neighbours, to name but a few. If they possibly can, landlords will avoid the expense and hassle of evicting tenants through the courts.’
Indeed, the legal process to remove tenants tends to be long, onerous and expensive. Landlords report that it takes an average of just over six months to secure an eviction. 47 per cent said it took between three and six months, 21 per cent between six and nine months. A small but significant minority of eight per cent reported that on average it took more than a year to get troublesome tenants out of the property.

Revolving-door décor

The latest research from MINTEL finds Brits now updating their home decor as often as they update their wardrobes. Fast fashion is moving into the housewares market as today just one in four British adults believes it is worth paying more for housewares that last. What is more, fashion beats functionality, with fewer than one in five (18 per cent) buying kitchen and housewares items for function rather than style.
‘It is clear that the British are now taking a more “throw-away” approach to decorating their homes. Indeed, housewares are replaced not because they are old or worn, but simply to get a new look,’ says Richard Caines, senior retail analyst at MINTEL. ‘This lifestyle has been made possible by falling prices in the housewares market, with Britain now enjoying more choice and better value for money than ever before. This is very much a trend from the clothing fashion world, where people are buying high fashion items at rock bottom prices, so that they can afford to update their wardrobes as often as they desire. This trend is epitomised by the fact that many of the most dynamic fast fashion clothing stores are now entering the housewares market.’

EU expansion brings more buyer choice

One year on from the expansion of the European Union (EU), property investors have been making the most of the enlargement by snapping up property in many of the new member states. Overseas investment has fuelled the housing market in many countries such as Cyprus, Hungary and the Czech Republic, and all eyes are now on the next batch of prospective member states to see if their property markets have similar potential.
Nick Clark, managing director of the Property Investor and Homebuyer Show North, which has a strong focus on overseas property, comments: ‘Sharp investors are constantly on the look out for where the next hot spots are going to be and many of the new EU member states have not disappointed.
‘Cyprus is without doubt the big success of the new EU states with many people who have bought property on the island seeing impressive returns. The Czech Republic, Hungary, and Malta have also seen similar effects one year into their membership and up-and-coming areas of Slovenia, Poland and Estonia are hoping for similar success fuelled by increasing tourism and commercial investment.

When new residential developments reach completion, many buy-to-let apartment owners find themselves competing for tenants in the rental market against many neighboring apartments almost identical to their own. However, with care in presenting and pricing their property, they can differentiate it to ensure occupation soon after completion, bringing income on their investment as quickly as possible.  

Mason Brooks, Lettings Manager for London estate agent, Hurford Salvi Carr, has compiled a list of tips to help buy-to-let landlord win the race for tenants, particularly young professionals:

General Rules

Put yourself in the shoes of the type of tenant you want to attract. Young professional tenants are usually the market to target and most want apartments furnished in a contemporary and neutral style.

Have a set budget to furnish your apartment. You can offset the furnishing costs against income tax.

For guidance on how to furnish your apartment to attract tenants, look at how developers furnish show apartments. A similar impact can be achieved without massive expenditure.


A well-presented furnished apartment will rent out more quickly than the unfurnished equivalent, and could be worth up to a month’s or more rental income, compared to it remaining vacant. Even with furnishing your apartment as attractively as possible, because of the other competition from many apartments being available at the same time, pricing must be set at a realistic level.  It may be worth considering discounting to ensure income is generated on the apartment as quickly as possible. Rates can then be increased at a latter date, when rental contracts come up for renewal and less competition is around.

Furnishing your apartment

The general appearance and specification of kitchens and bathrooms of apartments in a new development is often very similar. Where the owner of a new-build apartment can have an impact is in the furnishing of the bedroom and living areas.

In the case of living rooms, good-quality durable leather sofas and chairs impresses tenants. They also last longer.  Combine these with a sleek coffee table and rug to create a space for relaxation.

Curtains and/or blinds, particularly with many contemporary buildings having a large glass area, are important, giving an atmosphere of privacy and warmth. Please note all furniture and soft furnishings must comply with The Furniture and Furnishings (Fire) (Safety) Regulation 1993.

Adding domestic items, essential for modern living, such as microwave, kettle, toaster and ironing board, provide a finishing touch to help persuade tenants to select your apartment.

Expensive home entertainment systems are not necessary to attract tenants, and as they don’t add to rental income, the additional costs won’t be recovered.

For further information contact Mason Brooks, Hurford Salvi Carr, Limehouse Basin office: 020 7791 7011

The Bairstow Eves office in N16 is well placed to offer some of London’s most sought-after property

From its branch in trendy Stoke Newington Church Street, the professionals at Bairstow Eves have been witness to the rise of N16 in the desirability stakes. The smart shops and cafés, and trendy leisure and entertainment venues are testament to a neighbourhood with  Meanwhile, an influx of buyers has continued, almost oblivious to market conditions – and these are the hallmarks of a truly sought-after area.

‘Stokie’ appeals to a broad range of buyers, from single professionals to settled families. A Saturday afternoon along Stoke Newington High Street and Church Street will see a mix of people with a range of different ideas about how to spend the weekend: young pubgoers, families with young children headed to lovely Clissold Park, well-dressed women lost in café conversation… In this villagey part of north London, the pace is leisurely and the mood mellow.
It present popularity can partly be traced to the bullish property market of the 1990s, when prices in areas such as Islington chased a lot of prospective buyers north. However, word soon spread and Stoke Newington quickly became a destination of first choice. Its lifestyle proved magnetic and its good supply of Victorian terraced homes sealed the deal.

Bairstow Eves has a local network of sales offices covering London, Surrey, Kent and Hampshire.
Having been in existence for over 100 years the name Bairstow Eves is synonymous with professional estate agency.
Bairstow Eves now has over 240 offices all over the UK and is still expanding. The Stoke Newington Branch covers the postcodes of N1, N5, N7, N16, E8 and E9.

Stoke Newington has long been a vibrant and culturally diverse place to be. First mentioned in 1274, for 400 years it was a farming community in the Middlesex Countryside. Development was heavily influenced by London's growth with aristocrats wanting to be close to the city building their country houses in the area. It has always been a community that embraces people of diverse ethnic origins and different political and religious beliefs-in the seventeenth and eighteenth century it was the centre of nonconformist worship and radical politics.
When the railway came to Hackney in 1850 it became possible to commute daily to the city and the Victorian villas and terraces were built, which are still a main feature of Stoke Newington today.

The area affectionately known as ‘Stokie’ has become one of London’s trendiest addresses. Its villagey feel, good entertainment options and wealth of excellent period properties have lured buyers from neighbouring parts of the capital – much to the bemusement of long-term N16 residents, who feel protective of their cosy enclave. With no nearby tube station, Stoke Newington can feel cut off from the rest of London – but that’s part of its charm. This is an area with an inviting, slowed-down feel where people know how to enjoy life.
 
Shopping

Great for secondhand clothes, trinkets, books and high-quality tat. The High Street and Church Street can keep you browsing all day. The record shops around here are legendary, an extension of the effortlessly cool vibe that Stoke Newington exudes.
 
Nightlife

This is a great place to go out. Restaurants, from Mexican to vegetarian, line the main roads. A number excellent pubs, such as the Shakespeare on Shakespeare Walk, offer locals an unpretentious space for meeting up. The Vortex jazz club was a Church Street landmark for over two decades, and now exists in nearby Dalston, where it continues to present world-class musicians in an intimate atmosphere. And in nearby Hackney, the Ocean is a fantastic new music venue that has played host to everyone from James Brown to Patti Smith.
 
Culture

Stokie is a vibrant place with a large artist population. The epicentre at Church Street and High Street boast plenty of funky galleries and arts and crafts-type establishments. For cinema, the Rio in nearby Dalston shows both mainstream and art house films.
 
Relaxing

A multitude of choices, mostly in the café society vein. Stroll down colourful Church Street, enjoy a leisurely latte, people-watch. Clissold Park offers plenty of room for a relaxing walk, as well as tennis courts.
 
Travelling

Stoke Newington is in zone. Alas, no tube station – but the 73 Routemaster is the preferred public transport, zipping through Islington and central London to Euston station. Stoke Newington and Rectory Road mainline stations will also help you get to work.

 
 

A new investment vehicle is set to refresh London’s buy-to-let market.

The introduction of Real Estate Investment Trusts (REITs) in January 2007 is expected to bring fresh capital and investment to the London residential market, predicts leading London agent DTZ Residential.

Credit Suisse has predicted that the introduction of REITs will lead to the UK’s listed property sector doubling from £43 billion to £80 billion in just five years. Greater London’s strong population and employment growth will exaggerate the imbalance between supply and demand, contributing to a consistent price growth in the residential sector, proving residential property is still a sound investment. The London market has seen a growing demand from overseas investors, which is expected to increase with the introduction of REITs.

DTZ Residential believes that these trusts will attract investors who are interested in putting their money into the residential property market and who are also looking to take advantage of tax breaks and diversify in order to reduce risk.

London and the South East continues to be a favoured region for investors, mainly due to London’s mature rental market and the lower void periods that continue to characterise the London market. Gross yields for the year averaged five per cent, compared to an average of 5.3 to 5.5 per cent the previous year. Top-end properties are achieving gross yields of three to 3.5 per cent. Expectations of rental increases and positive capital price performance mean that this trend is likely to continue.

UK REITs are based around the American REITs model, which was introduced in the 1960s to give the public the opportunity to invest in large-scale commercial and residential developments. The funds have proved popular in the US, where there are currently 180 publicly traded REITs. The investments include residential, commercial and retail property and the average return on a REIT in the US is four times higher than that from other stocks and bonds. DTZ Residential anticipates that when REITs are introduced into the UK the level of institutional investment in residential property could rise from its current levels to in excess of ten per cent of the market within five years.

William Rogers, director of DTZ Residential, says, ‘We expect the central London investment market to continue to outperform the rest of the country. The Government’s u-turn, removing directly held residential property from Self-Invested Personal Pensions (SIPPs), at the end of 2005, did not impact as strongly on the market as was expected. This is because property is still seen as a solid investment – which is why the introduction of REITs, along with other indirect investment opportunities, is likely to result in an overall increase in investor activity.’