Buying, selling and letting - Friday, January 26, 2007

How to prevent the bottom dropping out of your house

Landmark Information Group has carried out a Ground Stability Report on the cheapest house in Britain, to highlight the benefits of commissioning such reports.  

The house was at auction for just £1,000 after the owners discovered it was dangerously positioned over a disused mine shaft. Landmark’s environmental report revealed a wealth of invaluable information likely to influence the sale of the house, including the mine shaft beneath it. The house sold for £32,000, not even a third of what it would be worth had it not been above the mine shaft.

This example highlights the importance for buyers to know what is underneath their house as well as on either side. The report Landmark carried out on the property above revealed the level of ground instability, the location of disused mine shafts in a 250 metre radius around the property (including the one the house sits on), as well as potential land contamination. All the problems the report outlines are impossible for a purchaser to know about by simply looking at the property, but are likely to affect the offer they put in, or even whether they buy the property at all.

James Sherwood-Rogers, Managing Director of Landmark Legal & Financial comments: “Incidents like this emphasize the importance of carrying out an environmental report on a property before buying it. The information picked up in our reports is something that people should be armed with in order to make an educated decision about their purchase. However, all too often they do not discover what lies beneath or around their property until it’s too late.”

James continues: “The area of Redruth had a strong mining community in the 19th century, so it is unsurprising to find so many mine shafts there. Buyers should be particularly conscious of commissioning a report if they are buying in an area that has had an industrial past.”


A report by Landmark will highlight past industrial use and proximity to landfill sites, which are a concern to many, as 400,000 properties in the UK are built on or near old landfill sites.

The reports also indicate the potential risk from other environmental liabilities such as flooding, pollution, proximity to masts, electricity substations, pylons and many other factors which can affect a buyers decision to purchase a property.  

Landmark provides a free site to check some of these issues against your postcode at Homecheck.co.uk. For further information on Landmark Information Group please contact 0870 606 1700, email info@landmarkinfo.co.uk or visit www.landmarkinfo.co.uk


Issued on behalf of Landmark Information Group by Harrison Cowley
For further information please contact Edward Dewar or Sarah McShane on 0207 404 6777 or edwardd@harrisoncowley.com; sarah.mcshane@harrisoncowley.com

If you are new to the market you will have a lot to learn. Chris Kelly of Myplace Estate Agency offers some tips for first-timers

1 Know what you can spend

Before you shop for a home, make sure of your financing possibilities. Many first-time buyers start looking at houses first and their finances second, setting themselves up for disappointment that they can't afford the perfect home. Don’t set yourself up for disappointment. Know exactly what your budget will be. The perfect house is always £10,000 more than you can afford.

2 Investigate bank loans and mortgages

As a first step, contact an independent mortgage advisor and ask for an individual offer. If you already know where you want to purchase, the property type (used or new, house or flat etc) and the approximate purchase amount, get the advisor to give you current information based on these criteria. This will help you make a good decision.

3 Don’t confuse need with want

Knowing the bare minimum that you need is the first step to feeling good about your purchase when it is made. The first step is to list everything you could possibly want in your house. Then rank them in order of importance to narrow it down to what is possible in your price range. Factor in lifestyle: you may really want a garden, but if you work long hours you may regret that decision when the reality of upkeep hits. Establishing minimum standards for your home will greatly increase your enjoyment and make the buying experience much better.

4 Start searching

Look at magazines, websites and other sources to see what’s out there. You may also want to explore drive your favourite neighbourhood and see estate agents’ boards. Visit agents that serve your desired area; they know the local area and market best and are in a position to offer you advice on everything from the behaviour of the local market to school catchment areas.

5 Deal or no deal?

When you find a property that gets your attention, the next step is to make a buying decision: accept that every time you purchase a home you have to make compromises; think carefully whether the home is right for you – even before you work out what price you are willing to offer.

6 Understand the value of the property

Worried about paying the wrong price? Not sure about the location? Ask your agent about the property's realistic market value. Do a thorough internet search of property prices in the area. To establish how much a property is worth, find a minimum of three similar houses that have sold recently in the same area. A good estate agent should be able to provide this information.

7 Make an offer

Move quickly, as desirable properties at affordable prices get snapped up fast in this competitive market. It is crucial to know what you want and what you can afford before you start looking. Factor in the costs of necessary renovations before you make your offer. Also think of the potential for resale before you commit yourself to purchase: is the home likely to gain in value given a rising market? Will any changes you plan to make to the property add to its value? Offers are usually given verbally, opening up negotiations. Make sure your offer is subject to survey and satisfactory appraisal. If the owner accepts and both parties agree on the details, you then go to your respective solicitors to draw up and sign the purchase contract.

9 Get a survey

To avoid any nasty shocks later on, make sure you get a survey done on your new property. It will highlight any structural problems, or legal worries. If the vendor is not prepared to fix any problems, you may wish to adjust your offer to take this into account.

10 Exchange and completion

The solicitor will conduct searches for environmental and ownership issues. When both parties agree terms and all of the issues brought up by searches and other exploratory work by the solicitor, a purchase contract will be drawn up and checked by solicitors for both parties. One contracts are exchanged, the deposit is taken and both parties are bound by the contract; the vendor must sell at the agreed price and the buyer must buy or lose his deposit. Completion usually takes place within a week after you have exchanged contracts. Once completion takes place you are now the official owner of the property.

Chris Kelly is managing director of Myplace. Call 020 8691 9191 or visit myplacelondon.com

Theo Michaels, founder of Co-BuyWithMe.co.uk, is in what you might call the second phase of his business, which specialises in bringing together those who want to buy property but aren’t well placed to do it on their own or with family or friends.
Last year Michaels bought a property with two other people. Back then, he says, ‘after looking into a mortgage and seeing how high London property prices were, I knew the only option I had was to co-buy which meant we had a bigger deposit, larger mortgage and split all the costs.
He updates the story for me. ‘We’ve come full cycle,’ he says. ‘Two of use are buying out he third. We started with the co-buying element and now we’re in the position that after two years somebody wants to leave.’

What’s changed in the co-buying scene in the last year? ‘Probably the main development is co-buying is becoming more mainstream as an emerging market. The public is more conscious. The knock-on effect is  that now we’re seeing HSBC with a co-buying mortgage. More solicitors are seeing they can work with multiple deed-holders. Developments are also putting forward co-buyer properties. The industry has actually acknowledged that co-buying is a trend and are capitalising on it. Mainstream people are becoming more aware. There was even a storyline on Eastenders. You can always rely on Eastenders to show you what’s trendy.’
Where there’s demand, after all, supply will rush in. ‘There has been enough movement so that the wealth industries will start to market co-buyer services.’
What marks out the types of property that appeal to co-buyers? ‘I think the obvious thing is the number of bedrooms. For most co-buyers, you’ve got three different markets. There’s the first-time buyers who are looking to buy and move in together; for them it is more the lower priced property – enough bedrooms just for them. The next is the private investment market looking for other investors for a syndicate. They’re sticking to the usual terms about what makes a good investment property. It’s the standard formula – if the figures stack up and it can work then that’s what they’re going for. The third group is overseas property. The number of bedrooms is almost irrelevant – they won’t be there at same time anyway. It’s a holiday home.’
This trend may be London-led, he says, but other large cities and bigger towns also figure prominently in the co-buying revolution. ‘Essex, Manchester, Birmingham, the growing towns. In Birmingham, for instance, it is cheaper than London but incomes are relative to that. Where someone in Birmingham is making £14,000 a year, you’ve got the same thing in London at £25,000 a year.’
Michael breaks down the coo-buyers into percentages: ‘About 60 per cent are first-time buyers, 25 per cent are private investors, 15 per cent are people looking for overseas property.’

Historically, buying has followed a well-worn path for many generations – but our buying habits have opened up dramatically as our concept of family and community have changed. ‘If you look at the property buying process decades ago, you only ever bought with your spouse. Two things make co-buying inevitable: the social change and the affordability gap. Social values are becoming more liberal, and with affordability still increasing it becomes acceptable to buy with friends.
‘Now we’ve reached the stage of evolution that it is acceptable to go out and find people to buy with. I see the pattern going towards the stage when everyone’s first home will be co-bought – well, not 100 per cent, you’ll always have wealthy individuals and those who prefer to rent. Particularly when you’ve got people who have gone to Uni and lived in shared houses – they may not want to buy alone and live alone. It will almost be the norm to go that route.’
And what’s the next move for Co-BuyWithMe? ‘From our side, we’re very much looking at how to streamline the matching service, to make it more fluid, more targeted, more effective. So they can spend less time looking and more time discussing. We want to provide them with more tools to manage their co-buying experience. We’re going to be investing a lot more in the community side of co-buying.’
Theo Michaels remains the most prolific co-buyer he knows: ‘I co-bought my first property with people I met through mutual friends, then co-bought with three guys last year as an investment; we complete on an overseas property that I bought with six other people, in Bansko, Bulgaria. In that sense, I’m the most prolific that I know of.’

Visit co-buywithme.co.uk

If you are new to the market you will have a lot to learn. Chris Kelly of Myplace Estate Agency offers some tips for first-timers

Know what you can spendBefore you shop for a home, make sure of your financing possibilities. Many first-time buyers start looking at houses first and their finances second, setting themselves up for disappointment when they can’t afford the perfect home. Don’t set yourself up for disappointment. Know exactly what your budget will be. The perfect house is always £10,000 more than you can afford.

Investigate bank loans and mortgagesAs a first step, contact an independent mortgage advisor and ask for an individual offer. If you already know where you want to purchase, the property type (used or new, house or flat etc) and the approximate purchase amount, get the advisor to give you current information based on these criteria. This will help you make a good decision.

Don’t confuse need with wantKnowing the bare minimum that you need is the first step to feeling good about your purchase when it is made. Some find out what that minimum is through a process of elimination: list everything you could possibly want in your house, then rank them in order of importance to narrow it down to what is possible in your price range. Factor in lifestyle: you may really want a garden, but if you work long hours you may regret that decision when the reality of upkeep hits. Establishing minimum standards for your home will greatly increase your enjoyment and make the buying experience much better.

Start searching Look at magazines, websites and other sources to see what’s out there. You may also want to explore your favourite neighbourhood and see estate agents’ boards. Visit agents that serve your desired area; they know the local area and market best and are in a position to offer you advice on everything from the behaviour of the local market to school catchment areas.

Deal or no deal?When you find a property that gets your attention, the next step is to make a buying decision: accept that every time you purchase a home you have to make compromises; think carefully whether the home is right for you – even before you work out what price you are willing to offer.

Understand the value of the property
Worried about paying the wrong price? Not sure about the location? Ask your agent about the property’s realistic market value. Do a thorough internet search of property prices in the area. To establish how much a property is worth, find a minimum of three similar houses that have sold recently in the same area. A good estate agent should be able to provide this information.

Make an offerMove quickly, as desirable properties at affordable prices get snapped up fast in this competitive market. It is crucial to know what you want and what you can afford before you start looking. Factor in the costs of necessary renovations before you make your offer. Also think of the potential for resale before you commit yourself to purchase: is the home likely to gain in value given a rising market? Will any changes you plan to make to the property add to its value? Offers are usually given verbally, opening up negotiations. Make sure your offer is subject to survey and satisfactory appraisal. If the owner accepts and both parties agree on the details, you then go to your respective solicitors to draw up and sign the purchase contract.

Get a surveyTo avoid any nasty shocks later on, make sure you get a survey done on your new property. It will highlight any structural problems, or legal worries. If the vendor is not prepared to fix any problems, you may wish to adjust your offer to take this into account.

Exchange and completionThe solicitor will conduct searches for environmental and ownership issues. When both parties agree terms and all of the issues brought up by searches and other exploratory work by the solicitor, a purchase contract will be drawn up and checked by solicitors for both parties. At the exchange of contracts, the deposit is taken and both parties are bound by the contract; the vendor must sell at the agreed price and the buyer must buy or lose his deposit. Completion usually takes place within a week after you have exchanged contracts. Once completion takes place you are now the official owner of the property.

Chris Kelly is managing director of Myplace. Call 020 8691 9191 or visit myplacelondon.com

The Association of Home Information Pack Providers (AHIPP) has launched a HIP Code of practice, ahead of the mandatory introduction of packs on 1st June this year, to ensure maximum protection for the consumer.

Home Information Pack (HIP) providers subscribing to the voluntary Code will be subject to stringent standards to ensure consumers purchasing a pack through an approved provider can place total confidence in the finished product.

All those involved in the provision of the packs are invited to sign up to the Code of practice (which is not solely restricted to AHIPP members) and consumers will be encouraged by the association to only use a HIP provider who displays the HIP Code logo in their window and on their stationery.

Mike Ockenden, Director General of AHIPP said: “The consumer will be able to place total confidence in any HIP purchased through providers adhering to the Code. The Government will be regulating Home Inspectors to ensure that they carry out their role to the highest standard and all consumers purchasing a Home Information Pack with the HIP Code logo can be confident that their provider is also being stringently regulated.

“The packs will carry professional indemnity insurance and any problems that may arise will be picked up immediately and resolved quickly, with minimum disruption and cost to the consumer.”

The Code will set out minimum standards which HIP providers must meet and the public can check whether a provider subscribes to the Code by contacting the Property Codes Compliance Board (www.propertycodes.org.uk).

The Code will be monitored by the Property Codes Compliance Board which is an independent body funded by registered firms and the Board will have representatives from lenders, conveyancers, HIP providers, search organisations and has consumers’ interests at heart.

Ockenden concludes: “It is vital that the providers of HIPs and all those professional people involved in compiling them are seen as trustworthy people with impeccable integrity.  This Code is a positive step to ensure that the whole provision of HIPs is seen to be regulated and above board.”

Andrew Frankish of Mortgage Talk looks at why buy-to-let has replaced shares

There is no doubt that the buy-to-let market has soared in recent years, with both property prices and rental income providing ongoing buoyancy in the sector as a whole. Both rental yields and house prices did well during 2006, and a recent survey from Mortgage Express showed 39 per cent of their existing buy-to-let customers intended to increase their portfolios.
As the ripple effect continues to be felt further from the South East, Northern buy-to-lets are the top choice for investors. Moreover, this fact is bolstered by a stock market that has struggled for popularity with investors, despite recent rallies.
This figure is given further credibility by a poll commissioned by The Property Investor. This revealed that over 70 per cent of investors are relying on buy-to-let for their future wealth, with less than two per cent opting for stocks and shares.

Longer-term investors

According to the Association of Residential Letting Agents (ARLA), investor landlords remain committed to the long term, with the life expectancy of their investments averaging 16 years. Even more importantly, almost half of these investors (45.8 per cent) are aiming to create a nest egg for the future, with 43.2 per cent hoping to benefit from both rental income and capital gain. A mere 3.5 per cent admitted to hoping for short-term capital gain, while only 7.5 per cent have invested solely for income.
This growth can be considered even more impressive when you consider the warnings the industry in general has put on the potential gains that the buy-to-let market has to offer. The mortgage industry is experienced enough to highlight to BTL customers the risks involved in this type of product. Having said that, however, there is one additional concern that we have overlooked, and which could come back to haunt us.
The implications BTL mortgages have on investors' potential future borrowing are often overlooked, and this has particular significance when it come to borrowing for their own residence. Despite all the information available to borrowers about the risks involved, there is very little reference as to how potential future borrowing can be affected.

Credit references

One important point to consider is the way in which BTL mortgages are registered for credit reference purposes. In the first instance, the temptation to not declare an existing BTL is foolish, as they will invariably show up on credit reference searches. Secondly, credit reference files are now detailed enough to indicate to potential other lenders the nature of any existing mortgage - in other words whether they are residential or buy-to-let.
Traditional prime residential lenders such as Nationwide and Halifax require a rental income on any buy-to-let mortgage to be 125 per cent of the interest payment at base rate or higher. However they both differ when it comes down to the documentation required to provide evidence of the income, as the Halifax requires an ARLA registered letting agent to confirm the rental income amount in writing. As a contrast, the Nationwide may also request actual copies of the signed rental agreement from your tenants. As always credit score and Loan to Value also play an important part in the process.
However more specialised lenders, such as BM Solutions and UCB offer BTL schemes that are far more flexible in their approach. For example, if the credit reference search shows the existing mortgage commitment as Buy-to-let the application will be accepted without the need for rental conformation, although the borrower can expect the interest rate that the lender levies to reflect this. Of course, the irony of this situation is that UCB and Nationwide are part of the same group, as are Halifax and BM Solutions.
Nevertheless, one alarming fact that many new Buy-to-let investors overlook is that, if they are looking to move their main residence at the same time as they have no tenant in their investment property, this could easily affect which lender will consider lending on their main home.
Of course, because of the different criteria being used, it is unlikely that the borrowers will be precluded from getting a mortgage facility altogether, but it could lead to them being granted a less favourable interest rate.
So how is this like to affect the future market? The simple answer is that we are already seeing a growing number of new lenders entering the lending market. Typically, these lenders are looking to streamline there processes and simplify criteria to bring a more flexible approach to lending.

A second home in the sun

With more and more people borrowing on their main residences to fund their holiday home buying, do we need to consider the impact that this trend may have on future borrowing?
Traditionally, funds are borrowed from lending institutions outside the UK, and secured on the overseas home itself. However, even where the overseas property is intended by the borrower to be self-sufficient and let out to holiday-makers and potential longer term tenants, there is no guarantee of income or return on investment. As such, should lenders view this borrowing as being included within the total borrowing that an individual has to his or her name?
Of course, the only effect that really matters is what actually happens in practice, and the industry view is that this is unlikely to have a detrimental effect on the buy-to-let market. The fact is that we exist very much in a buy now, worry later culture and, as such, if people can find a reasonably pain-free way of satisfying their aspirations, they will do so. That fact alone means that the buy-to-let market will go from strength to strength.
Coupled with this is that fact that there still remains much scepticism in stock market investments as a means to bolster failing pension provisions. This translates to a burgeoning culture of second, third and more investment properties for many people.

Andrew Frankish is managing director of leading broker Mortgage Talk. Visit mortgagetalk.co.uk

Ten years after the buy-to-let mortgage was first introduced to the UK, over 1 million households (five to six per cent of all households) live in buy-to-let properties and 20,000 to 30,000 additional households will be bought to let over the next decade.
With the aim of securing at least ten per cent rental return per annum plus capital gain it is clear that investing in bricks and mortar can be very lucrative over the long term - but with thousands of properties and mortgage products to choose from where do you start? A good bet is to start with these ten rules for novice investors.

• Do your research Before embarking upon any purchase you need to ask yourself if buying to let is right for you? Do you have the determination, perseverance and self discipline for a long term project? Can you budget well, can you deal with people from a range of different backgrounds, do you really like property, are you responsible? Remember that buying a property to let is not just about your needs, by renting a property to others you are affecting their lives and have a role of responsibility.

• Raise the initial investment Most people think that to become a professional landlord you need mountains of cash, this is just not true, I started with a mere £500. The key is a good knowledge and understanding of the financial products available to you. Of course it is ideal if you do have some personal funds to invest but if not consider the 100 per cent loan-to-value residential mortgage.

• Find the right buy-to-let mortgage provider With hundreds of buy-to-let mortgage products on the market it can be a baffling place. The traditional buy-to-let mortgage requires 15-25 per cent of the purchase price as a deposit, the larger your initial investment the more you are able to borrow. Do your research as you would for a standard mortgage by comparing interest rates, repayment structures, fees and penalties etc. It is often advisable to approach a provider with whom you have a good financial history or a buy-to-let mortgage specialist.

 

• Find the right property As they say location, location, location. I see many people buying in ‘up and coming’ areas only to be disappointed by the rental returns on their investment. My property choices are based in price, price, price. Getting to know a local market will give you the knowledge to spot if a property is a bargain or not. Speak to local agents and establish the rental value of different property types so if you see a cheap property which could command the going rental rate for the area then you know it’s a bargain.  

• Aim for 12 per cent Some landlords are happy to receive 8, 9 or ten per cent rental return. However, I feel that a 12 per cent return is achievable and that is my benchmark. I use the simple ‘rule of 12’ when deciding if a property is worth investing in; take the purchase price, divide by 100 thus giving the monthly rental figure that needs to be charged to obtain a 12 per cent gross yield. For example if a property is priced at £100,000, divide by 100 giving £1,000. If the monthly rental figure (£1,000) can be achieved in the area then go for it.

• Don’t spend on refurbishment If you are new to property investing, I would advise not to spend time and more money refurnishing a property. Inevitably refurbs cause stress and for you to lose money during the time the property is un-let. Instead just make sure your property is neutrally decorated and clean. Don’t personalise it with your taste as this can put off potential tenants. Let them feel that your property is a blank canvas for them to make a home.

• Find the right tenant So, you’ve bought your buy-to-let property but now you need a tenant, where to look? Firstly match your ideal tenant with your property type. For example a one-bedroom flat in the city centre will suit a single professional or a couple whereas a five-bedroom house in the suburbs will be aimed at a family. Once you have decided who would best suit your property advertise for that type alone either yourself or through a letting agent. It is important to meet your tenants and feel comfortable as they will be living in your property.

• Minimise void periods Your buy-to-let property is not fulfilling its function and generating income unless it is let. There will of course be times between your old tenant leaving and the new one moving in but you can minimise this period by having neutral decoration, investing in high demand areas, seeking a new tenant as soon as notice is given ad invest in a property type which is in high demand in the area.

• Work with an agent If you have more than one property or have invested outside your local area then it can be an inefficient use of your time and resources to manage the property yourself. Take advantage of local letting agents who will know the area inside out and let them source tenants, collect rent and undertake any repairs. If you do this it is essential however that you form a strong relationship with your agent but if this can be done the 12-20 per cent + VAT of rent collected can be well worth it.

• Expand your portfolio The majority of buy-to-let landlords own more than 1 property. Once you have gone through the process once you are able to draw on your experiences to invest again. The key to expanding is the ability to release the equity in your property through remortgaging. Be careful though, building a portfolio can increase risk if not managed property.   

The average buy-to-let property rose in value by five per cent in 2006 (according to figures from Paragon’s buy-to-let index) due to an uplift in capital values, stable rental yields and positive economic backdrop compared to a mere 0.8 per cent uplift in 2005. This trend shows no signs of slowing in 2007 as the high demand from tenants continues, especially the immigrant worker population.

For more information about buying to let contact Ajay Ahuja on 0870 990 3207 or visit ahuja.co.uk.

Shrewd investors know that buying in areas with a steady supply of tenants makes sense. And the towns and cities that are home to universities are good locations for buy-to-let purchasers for a number of reasons.
The influx of students and university employees keeps landlords supplied with tenants. Also, student accommodation can take many forms, from two-bedroom apartments to larger multi-room houses, so capital outlay needn’t be too high. And investors will find much to like in the current crop of newly built homes in university towns up and down the country.

CARDIFF

Charles Church offers Century Wharf, located in in popular Cardiff Bay area. Four phases already complete and the fifth phase is nearing completion; the sixth and final phase of new homes, Strata, will include a high-rise apartment building.
There are currently a mix of one- and two-bedroom apartments and penthouses available, many with generous balconies. The development also boasts a range of on-site leisure facilities including a 15-metre swimming pool, fully equipped gymnasium, solarium, Jacuzzi and sauna.
The enviable waterside location is one of the most vibrant areas of this exciting city. The revitalised Cardiff Bay boasts a newly created freshwater lake, myriad waterfront bars and restaurants, as well as entertainment at the Atlantic Wharf Leisure Village. Century Wharf is its own exclusive community within the centre of the city, in an environment that’s tranquil, spacious and luxurious.

One bedroom apartments at ‘Century Wharf’ start from just £148,500. For further information contact the sales office, open daily from 10am to 5pm, on 029 2047 1707 or see charleschurch.com.

MANCHESTER

In buzzing Manchester, George Wimpey offers the impressive Great Northern Tower, a landmark building offering everything the owner-occupier or landlord could ask for. The 257 luxury apartments include one- and two-bedrooms as well as roomy duplexes.
Fitted kitchens by Mirari include all the appliances you could need, while contemporary bathrooms have white sanitaryware by David Chipperfield and elegant touches. There is laminate flooring throughout.
The views are amazing and the central location means it’s only moments to transport, entertainment, leisure facilities and shopping. Central Manchester is an area that will continue to be popular through any changes in ‘location fashion’. And of course Manchester University, the country’s largest single site university, is easily reached from Great Northern Tower.
Prices will wow any prospective buyers; starting at just £198,500 for a one-bedroom apartment, this development is ideal for both the novice buy-to-letter and the multi-property landlord. Tenants and owner-occupiers alike will appreciate the 24-hour porter service and basement parking.
Visit greatnortherntower.co.uk for further information.

SHEFFIELD

Speaking of tall, stylish buildings, in the heart of Sheffield city centre you’ll find City Lofts St Pauls, a landmark development of 316 studio, one- and two-bedroom apartments set in two interlinking towers of 12 and 32 storeys respectively.
Designed by Conran & Partners, the development will provide an impressive contribution to the area’s £180 million Heart of the City regeneration project and will create Sheffield’s tallest building which will act as an iconic marker for the rejuvenated city centre.
In addition to the residential element of the scheme, City Lofts St Pauls is part of a joint venture development with CTP St James which will also create approximately 22,000 sq ft of retail and leisure facilities. The combined scheme will make a considerable contribution to the city’s renaissance, with the commercial spaces breathing new life into the surrounding streets by bringing new employment opportunities and up to 500 new residents to the area.
And for an investor, the time to buy is when an area is on the up.
Located to the south of Sheffield Town Hall, the site is bounded by Arundel Gate and the business and management faculty of the Sheffield Hallam University, with the award-winning Winter Gardens to the north east. The south east side of the site is the location of the proposed Alsops steps that will form a new pedestrian route accommodating the six-metre change of level between St Pauls’ Place and Arundel Gate.

City Lofts St Pauls has been sensitively designed to create a striking, modern building while complementing the adjacent Grade I listed City Hall and the modern Winter Gardens. The light and slender towers create architectural forms that are both original and elegant, and high-quality traditional and modern materials ensure a lasting contribution to the skyline.
The building incorporates a variety of complementary external treatments with the use of extensive glazing, warm stone cladding, specially made terracotta rain screens, copper cladding and bronzed aluminium louvered panels to create a distinctive and memorable design.
There is considerable landscaping, with the space between the two towers used as a private resident’s garden. Situated on the third floor level and accessed by a staircase from the entrance lobby, this space is surrounded by private terraces belonging to the third floor apartments, accessible from the bedrooms and reception rooms. Bordered by clipped Yew hedges, the terraces provide residents with privacy while also a serving as a visual bridge between the architecture and the nearby green spaces.
Residents in the tower will enjoy panoramic views over Sheffield City Centre and the newly created Winter Garden and Peace Garden below. There are also plans to include a communal roof terrace and residents will benefit from two levels of integrated basement parking, accessible from Arundel Gate.

Building 1 provides 86 one-bedroom apartments and 144 two-bedroom apartments distributed from floors two to 32. Building 2 provides 43 one-bedroom apartments and 43 two-bedroom apartments, with two levels of underground car parking below.
Interiors are clean, uncluttered living spaces from Conran and Partners. Materials have been carefully chosen for their quality and ability to age gracefully, creating high-quality open plan living areas that are both exciting and comfortable. All apartments benefit from full-height sliding windows to the living spaces, offering good natural light and a sense of space, with some apartments providing unrivalled views over the city and beyond.
The Conran designed kitchens include stylish granite worktops and stainless steel splashbacks, as well as state of the art AEG appliances, while bathrooms offer high-spec Villeroy & Boch sanitaryware and Hansgrohe taps and fittings. Each apartment has a video entryphone. The development also has a glass-fronted lift and concierge service. Secure parking is available.
City Lofts St Pauls is currently under construction and is due for completion in 2009. Prices for the apartments start from £200,000 for a two-bedroom apartment, with a penthouse priced at £407,000. Not surprising, these homes are selling very quickly so a canny investor will get in quickly. Visit citylofts.co.uk to find out more.
Along the south coast, there are several excellent university locations attracting the buy-to-let investor.

In Southampton, where a major project of regeneration is occurring, Linden Homes is creating two landmark inner-city schemes which, along with a vastly revived city centre and considerable new business investment, will help put this famous port on the map as the next south coast hotspot.
Knight Frank has recently predicted average price rises of 26 per cent by 2010 in Southampton, making it one of the key growth areas in the south of England. The city’s airport is seen as the key to its recent resurgence, bringing business to the city and creating employment.
Philip Davies, chief executive of Linden Homes, says, ‘Up until recently, limited choice of housing stock and negative perceptions of the city have kept it from competing with more upmarket south coast resorts such as Brighton, but that is all changing now as Southampton waves goodbye to its industrial past and transforms into a modern, prosperous city.’
At Telephone House, Linden Homes has converted the redundant BT Telephone Exchange into a contemporary landmark scheme of mixed use, with 128 one, two and three-bedroom apartments, many with Solent views, and a small number of commercial properties including a café and small shops.
And work is already well underway at French Quarter, Linden’s next Southampton regeneration project, which launched in the New Year. This will comprise 175 private sale apartments and 52 homes for the retirement market, as well as ground-floor retail and office space.
A number of fourth-floor apartments are currently available for sale at Telephone House, ranging from a one-bedroom home with a balcony for just £144,950 to a three-bedroom apartment with a parking space and balcony for £234,950. Contact the sales and marketing suite on 0845 603 0773 or visit lindenhomes.co.uk.

CAMBRIDGE

Grebe Court is attracting buyers from near and far. The striking new Barratt development is set to transform the site of the former brickworks, tile factory and money store building in Mercers Row into a highly desirable residential hotspot. Although only launched last month, already seven of the 25 new homes have been purchased off-plan.
Paul Smith, managing director of Barratt East Anglia says, ‘Grebe Court represents the first change of use on the site from commercial to residential, and provides an excellent opportunity for those seeking a convenient and reasonably priced address in Cambridge. Those who have already bought homes at the development include first-time-buyers and investors from the local area; we’ve also had interest from as far away as Serbia and Spain.’
Grebe Court is only around a mile and a half from the striking city centre, with good links to the riverside and cycleways. The homes, set around a landscaped courtyard garden, will include 25 one- and two-bedroom apartments and three-bedroom houses for private sale, as well as ten affordable homes.
Kitchens have a stainless steel oven, hob and hood, while bathrooms offer pristine white suites. The properties come with private allocated parking and covered cycle stores.
The first homes are expected to be ready for occupation next month. Prices for one-bedroom apartments start at £187,500, while two-bedroom apartments start at £205,000 and three-bedroom houses are priced from £250,000. Call the sales and marketing suite on 01787 468950 or visit barratthomes.co.uk.

PORTSMOUTH

Admiralty Quarter, a Crest Nicholson development, is ideally situated for students of the University of Portsmouth. Located in the heart of the Portsmouth regeneration  area and enjoying sweeping views over Portsmouth Historic Dockyard and the harbour, the development offers a selection of studios and one-, two- and three-bedroom apartments.
This 22-story steel and glass tower offers dramatic styling and modern, award-winning architecture. With sleek, open-plan interiors and modern designer kitchens, these apartments offer the ultimate in contemporary urban living.
Most of the 569 apartments will have dedicated secure car parking spaces and the development will include new retail units along Queen Street. Parents’ peace of mind is assured with security at Admiralty Quarter including CCTV throughout the development and a video entry system both to the car park and each of the buildings. It will also be one of the few residential developments in Portsmouth to feature a 24-hour concierge service.
One-bedroom apartments are priced from £145,000 and two-bedroom apartments are priced from £192,950. For further information contact the sales team on 0870 759 0325 or see admiralty-quarter.co.uk.

READING

There has been outstanding interest in properties at the highly sought-after St James Homes development Kennet Island in Reading. Known as the thriving town’s new urban village, the development’s homes continue to sell within days of each new release.
Kennet Island is a mixed-use development comprising 850 high-quality, reasonably priced residential dwellings, alongside commercial properties and leisure facilities. The latest release of homes is based in Hydra Square, set in the heart of the development. They are located close to the continental style urban piazza, which was designed as a community space and envisaged to be home an array of cafés, shops, parks, play areas and other leisure facilities.
The site is located next to the A33 and very close to the M4, providing excellent access to London and other major cities. Also nearby is the landmark Madejski Stadium, home to Reading FC and London Irish RFC, as well as a conference centre and four-star hotel. All of this adds up to an excellent investment opportunity.
The high-specification residential properties carry very kind price tags: current availability at Kennet Island includes two-bedroom apartments priced from £212,950, three-bedroom duplexes from £244,995 and three-bedroom town houses from £249,995. For further information call 0845 603 4043 or visit kennetisland.co.uk.

It’s bound to happen eventually. You’re trying to get your investment property ready for the next wave of holidaymakers when you discover a damaged or stained sofa. Getting a new one normally eats up important time, not to mention money. So what do you do?
Holiday cottage owners normally don't have much time to clean and spruce up their property between sets of tenants at the best of times. But a nightmare scenario such as a damaged sofa makes the pressure even more overwhelming. The owners need to get a new one in double quick time or potentially lose crucial revenue.

Most sofas take several weeks to be delivered, and even then customers often have to take time off work to accept the delivery. But Intosofa, an online self assembly sofa company, can normally deliver in around two weeks on a day of the customer's choice. Or, for a little extra, before 1pm, before 10am or on a Saturday morning.
If only a part of the sofa is damaged, it is possible for Intosofa to replace just that piece - for example if a new arm section is needed. A stock of sofas is also kept by the company too, so if the style and colour suits, a sofa can be delivered the next working day, if ordered before 11am the previous working day.

Intosofa director Lucy Chadwick says, ‘A lot of our customers own holiday properties which are an important source of income. They tell us that sometimes when they go in to clean between tenants they are faced with a terrible mess which extends to the state of the furniture!  If their holiday cottages are small, access can be an issue too, in terms of getting a sofa through the front door. Our sofas are self assembly, arriving in three packages, and so getting a sofa or sofa bed through an awkward space or up the stairs is not a problem.’
There are four attractive collections available in a range of over 50 fabrics, including some recent additions. Contemporary Nouveau features square arms and rectangular back cushions; Elegance is softly feminine with gently tapered arms and back cushions; Avant is a fun art deco style retro design with rounded arms and chunky cushions; and Classic is more traditional, with scroll arms and rectangular back cushions which extend over the arms. With Intosofa's unique Vari-Sit reversible seat platform, you even get to choose a standard or firmer feeling 'sit' on your sofa when you assemble it.

Besides conveniences, value is a mark of Intosofa’s range. Prices start at £199 for a standard sofa, £229 for a medium and £249 for a large sofa. There's also a sofabed at £299 and an armchair at £159.
You can view the range, request a free of fabric samples (if you want to check out your colour scheme 'in the flesh' before buying) and ordering online. Visit intosofa.com or call 01535 604090 to find out more.

A couple of years ago, Chancellor Gordon Brown suggested that he was losing patience with the UK’s volatile house price rollercoaster. And, with homes in some regions doubling in value in less than three years, the government, like many others, had reason to wonder where it's all leading to.
Of course, it can be difficult to analyse exactly why house prices suddenly take off, after years of stagnation.

The recent price boom was, in hindsight, reasonably easy to predict however: after all, a combination of cheap loans and market confidence has always been a recipe for price inflation.
One of the possibilities that the Chancellor began to investigate was whether a move to US-style long-term fixed-rate mortgages could help bring some stability to the UK.
Now, our cousins across the Atlantic have a very different view to us when it comes to defining what is meant by the phrase ‘long-term’. For example, a quick straw poll around a few UK-based brokers reveals that over here the longer term is regarded as anything exceeding three to five years. In the United States, however, we are looking at mortgages that offer borrowers a fixed rate for 25 or even 30 years.

So what is it that's so different about the North American market, and would it help us over here? In the US, the Federal Reserve base rate rose to 5.25 per cent in June 2006, although they have been as low as a scarcely believable one per cent – a 45-year low.
But that didn't mean that mortgage rates plummeted to the same degree. In fact, because long-term interest rate predictions are something that's beyond the knowledge and control of even the globe's top economists, there has to be a considerable margin between the prime rate and the mortgage rate that's actually charged. As such, when the Federal Reserve cut its rates to a single per cent back in the summer, the average American still paid about six percent on his long-term fixed-rate mortgage, a figure that still applies today.

The big problem here is that, given the fact that the UK remains Europe's most competitive and sophisticated mortgage market, our consumers simply wouldn’t be interested in a product that ties them into a fixed rate of that magnitude for the full length of their mortgage term.
This historical competitiveness means that the UK consumer believes he or she gets the best deal in any event. And if the market emphasis changes after their current offer expires, they can always take out another product. Or can they?
Often our mortgages are less flexible than we think. Many times we hear of people who would like to get out of their expensive fixed or standard variable rate loans, but would be blighted by costly tie-ins that demand several months' worth of interest just to leave the product.
Having said that, though, the recent boom in remortgage products has made buyers more savvy, with the result that most borrowers look for two- or three-year fixed or discounted deals, without an extended tie-in, enabling them to hop onto the next product bandwagon when their current incentive period expires.

What we really need to do is to look beyond the current breed of fixed-rate products, where tie-ins go hand in hand with incentives. In the US, the general rule is that you are free to move around and swap mortgages as you wish. In fact, the market is by and large much simpler than ours, with a lesser range of product types and easier migration between loans. What's needed therefore is a product range that concentrates on fixed rates, but without the penalties that the market generally associates with them.

Naturally, it won't have escaped the attention of most readers that, as well as potentially promoting better market consistency, there are other compelling advantages to the US system. For a start, especially for younger (read first-time) buyers, long-term fixed rates offer a better way of calculating affordability. If, for example, we take someone's income at age 25, it is unlikely to drop over the following 15 or so years, barring unemployment, which can and should be insured against.

So this leads us onto the next major benefit of long-term fixed loans. Because they allow for superior financial planning, lenders are more inclined to offer better income multiples than under our short-term oriented regime. This means that in one fell swoop first-time buyers would be encouraged to come back into the market, helping to promote consistent but steady growth rather then the instability that we tend to experience at present - just what the Chancellor ordered.
But hasn't this been tried already? Well, in a sense, it has. The Cheshire currently offers a 25-year fixed rate at 5.97 per cent, until the end of May 2031. With up to 95 per cent loan-to-valuation, portability and overpayment facilities, isn't this the sort of product that Gordon Brown would want us all to have, especially as there is no penalty after the first seven years of the term?
So far, however, it has not taken the market by storm, and the main reason is that there are some very attractive shorter-term fixed and discounted schemes still out there. So on the face of it, a product that demands almost six per cent interest is out in the wilderness.
Statistically, our property market also favours short-termism. With the average home owner moving every five years, it seems that UK consumers are more willing to take a gamble than our American counterparts. Indeed, the old saying that the market gets what the market wants seems to ring true as, out of the 2,500 or so mortgage products available to the average customer, fewer than 100 offer a fixed-rate term in excess of five years.
So it seems that the government has its work cut out if Mr Brown is going to conquer our love affair with the short-term deal.

Andrew Frankish is managing director of leading broker Mortgage Talk. Visit mortgage.talk.co.uk