Buying, selling and letting - January, 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

The monetary policy committee (MPC) of the Bank of England put up interest rates last week by a quarter or a per cent for the third time since August, bringing the base rate to 5.25 per cent. The move, which was not expected by industry pundits, will be seen as an effort to control inflation, which has crept 0.7 per cent above its 2.0 per cent target.

The move was panned by the housing industry, coming as it does at a time when first-time buyers are finding the market unapproachable. Philip Davies, chief executive of Linden Homes, says, ‘The Bank's decision to raise interest rates again is likely to price many remaining first buyers out of the market. This will result in stagnation and prevent existing home owners from moving up the ladder. Consumer confidence will be dented by this latest rise, implying the continuation of an upward trend in interest rates into 2007.’

David Bexon, managing director of SmartNewHomes.com, calls this ‘a dangerous decision at this time’ and says the rise ‘could prove detrimental for the housing market and could sabotage a buoyant start to the year’. Citing the potential for insecurity that may stem from the introduction of HIPs in June, Bexon worries that those who have recently bought and those who were preparing to do so will be adversely affected, with the result that new buyers will be deterred from entering the market.

With financial announcements, the explicit message is sometimes said to hide a more subtle communication, as institutions telegraph intentions and attempt to change behaviour through policies and accompanying statements. With the recent interest rate rise, Assetz finds just such an ‘Easter egg’, with the MPC’s intervention as laden with symbolism as the horse’s head in Jack Woltz’s bed in The Godfather: ‘The MPC has delivered a warning shot to businesses with this surprising rate rise so early in the year,’ says Stuart Law, Managing Director of Assetz. ‘As we enter the main wage bargaining period the Bank is shocking businesses into restraining wage rises by increasing their existing costs and showing willingness to raise rates further, thereby helping curb inflation.’

‘This rise is unlikely to be related to house price growth, as this is caused by the imbalance between supply and demand rather then low borrowing costs.
‘We expect that wage inflation will be kept under control at four per cent or less, while inflation is expected to drop back down to two per cent by the end of the year. This, combined with falling energy prices, confirms that the economy is on an even keel and we are likely to see the Bank holding or lowering rates in the coming months.’
--
Unlike November’s rise, this month’s interest rate rise was a surprise to all. Much like the freak weather it has caught all of us unaware and unprepared.’

‘Within 30 minutes of the announcement we were directly called by two customers. The first asking to move quickly on a fixed rate product within the market before rate repricing begins and; the second customer wanting to move immediately off their tracker as they couldn’t afford their £30 hike in monthly mortgage repayments. Customers are seeking certainty in the face of financial adversity.’

‘Moneypilot’s advice to customers is don’t panic, you’re not on your own. If you’re concerned about the impact on your mortgage, and other debts, there is plenty of free independent financial advice out there. Any good mortgage advisor should fully assess your mortgage planning needs and provide you with the financial stability during 2007’s rate uncertainty.’
--
Chris Kelly, managing director of MyPlace estate egency in south-west London, comments:
‘Although a rise in interest rates is a big story , the increase is only the usual 1/4 percent. The effect will be increased mortgage payments but not by
much.’

Clydesdale Bank

Tom Vosa, chief economist at Clydesdale Bank, said: ‘The move hadn't been anticipated by the markets. It seems enough members of the Monetary Policy Committee were worried that the strength of consumption going in to Christmas - plus evidence that wage demands are rising at a stronger than anticipated pace - means there are risks that inflation will overshoot the Bank's target of 3 per cent.
‘A pre-emptive rise now could be an attempt to avoid tightening in February being seen as a knee-jerk reaction to any rise in inflation through the three per cent upper limit, which would require Governor King to write to the Chancellor explaining how he intends to get inflation back on target when December data are released next week.
 ‘With personal incomes being eroded by higher taxation and debt costs, it is possible that ongoing wage demands will mean that further tightening will be needed. That said, after a solid Christmas, retailers can now expect to see much tougher trading conditions.’

Choosing the perfect blinds is a good way to give your home kerb appeal

The wisdom of smartening up your home for sale is unquestioned, though what is the best way to go about this can depend very much on the type and condition of the home. One thing that is difficult to dispute, however, is that ‘kerb appeal’ is crucial.
First impressions count, after all.

Available at homestyleblinds.co.uk


MAKE YOUR WINDOWS THE BEST-DRESSED IN THE STREET – WITH TV’S COLIN AND JUSTIN

They’re two of the country’s best-known TV design experts - and now Colin and Justin have gone blind crazy.
The duo have launched their own collection of fabulous window blinds and dressings, fronting the new Homestyle by Vantana range of blinds.
The new Colin and Justin collection covers every must-have blind you can think of – from venetian to woods and woodweave and from roller to vertical and PVC. The venetian ranges come in 130 colours and four slat widths.
Homestyle By Vantana’s extensive collection also offers bespoke conservatory blinds and the more specialist ranges of rio awnings and giant parasols.
A closer inspection of the roller blind collections reveals snakeskin, suede and cork looks which the TV designers label ‘high fashion fabrics for your windows’.
Colin said: ‘Our new collection of roller blind fabrics is so massive we had to divide it into five books. Just salivate over this lot!
‘Plains. Fantastic colour ranges in plain woven fabrics, including flame retardant, moisture resistant, dim out & blackouts. Special weaves & jacquards. Gorgeous woven effects in fabric and even in paper! Lots of qualities & lots of choices.
‘Printed patterns. Traditional borders, modern designs and some retro, something for all tastes and all rooms.’
Justin added: ‘The natural world - you have to see this collection! Faux suedes, corks, leathers, snakeskin, alligator skin, hessian weaves...Tactile designs that will make you the envy of your friends.
‘Accessorise...it’s all the rage y’know! Designer pulls you will never have seen before - or imagined at the bottom of a blind!.Shapes, poles, braids, beads, eyelets, ropes and a very classy selection of finials make this the range to make that roller blind unique and special.’
Visit homestyleblinds.co.uk for a downloadable brochure and check out the site for Colin and Justin’s tips and secrets on how to make your windows the best-dressed in the street.

Appointments can be made and brochures requested via the website or by calling 0800 337700.

We look at the past, present and future of co-buying with Theo Michaels of CoBuyWithMe

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 us are buying out the 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 co-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

The Halifax house price report for December says house prices fell by 1.0 per cent last month. However, prices in the fourth quarter of 2006 were 4.2 per cent higher than in the previous quarter.

House prices increased by 9.9 per cent in 2006, just above the long-term average of eight per cent per year. In Greater London, the average price increased to £287,176 by the end of the year. This puts it above the inheritance tax threshold (or IHT, currently £285,000) for the first time. Halifax again calls on the government to commit to linking the IHT threshold to house price inflation.

The average price in the South West broke through the £200,000 barrier for the first time in in the final quarter of last year, at £200,931. The 10.5 per cent increase in prices in the South West in 2006 represented a recovery following a 1.9 per cent fall in 2005. Similarly, prices in East Anglia also achieved double-digit growth (13.0 per cent) after a small fall in prices (-1.0 per cent) in 2005.

As expected, house price inflation remained modest in northern England in 2006. The North recorded the lowest regional rise during the year (3.1 per cent), the smallest increase in the region since 2000.

It appears that in the current market, it isn’t just the lack of property that is pushing up prices, as would be easily predicted by the most basic laws of supply and demand. The sudden presence of billions of pounds of City money (as outlined above) is bound to have something of a distorting effect on the usual rules of give and take: owners of very high-end properties may find themselves faced with a crop of competitive would-be buyers. And they will be more likely to overcome their aversion to moving if someone makes an offer they can’t refuse.
In locations across London and the South East, the lack of housing stock is the problem estate agents point to. In Clapham, one agent says the effect of the recent City bonuses, as outlined above, is already evident, ‘especially at the upper price ranges’. However, says the agent, ‘There is still a real lack of property for the number of buyers around and multiple bids on good properties is pushing prices up.’

Other similarly wealthy areas echo the complaint about the lack of homes on the market. In Highgate, for example, a spokesperson for Benham & Reeves says, ‘A depleted register means competition for avaliable stock. The highest market remains strong with a severe shortage of property.’ And in Richmond, one of London’s most sought-after spots, Hamptons International reports an ‘extreme shortage of stock which is driving prices up’.

Source: Hometrack

ELECSA partners with WM Training to offer a complete solution for a domestic wind turbine system to help home owners comply with the Building Regulations

ELECSA, the Government authorised no-nonsense scheme for Part P of the Building Regulations announced today that it has formed a partnership with WM Certification to deliver a public schedule course for the installation of domestic Wind Turbines.

With continual increases in electricity bills and Britain having the most consistent wind in Europe, a domestic wind turbine represents a real sustainable, eco-friendly option compared to energy derived from fossil fuels. For homeowners, domestic wind turbines offers them the ability to take part in delivering green energy direct to their home while contributing to the reduction of CO2 emissions and savings off their average annual UK electricity bill. Property owners can apply for grants for domestic wind turbines from the Energy Saving Trust and some local authorities are willing to top this up.

With wind turbines currently falling under the scope of Part P, ELECSA and WM Training have jointly developed a recognised training course and qualification for domestic wind turbine installation which meets the industry standards set for Part P self certification. Successful candidates are awarded "EL4001- Electrical installation of domestic wind powered small scale embedded generators" which is jointly certified by ELECSA & WM Certification. The five day course of the Installation of Wind Turbines which covers the electrical installation, testing and certification of the turbine and inverter and ensures that trainees are able to install correctly and to the standards set down by the 16th Edition Regulations and Part P.

All fixed electrical installations such as wind turbine installations and alteration work that has been carried out must be certified as complying with Part P of the Building Regulations. Legally, it is the responsibility of the homeowner to prove compliance which can be demonstrated in two ways:

·    Obtain approval from the relevant Local Authority and pay for an inspection visit to have them confirm that the electrical installation has approval under Part P the Building Regulations.
·    Have the work undertaken by an electrician/tradesman who is registered with a Government authorised Competent Person scheme such as ELECSA.

This means that when property owners install a domestic wind turbine using an ELECSA registered business who has undertaken WM Training's Wind Turbine Installation course, ELECSA will notify the relevant Local Authority and issue a householder certificate which can be used as legal evidence that the wind turbine installation has been self certified as complying with Part P of the Building Regulations and that the appropriate Local Authority has been notified. This is vital since when the time comes to selling a property, the purchaser's solicitor, while undertaking the necessary searches for building work notices, will ask for evidence that any electrical work installed after 1 January 2005 complies with Part P of the Building Regulations.

Commenting on this development Julian Carter, General Manager, ELECSA, said "We are pleased to be working with WM Certification, a leader in electrical training courses to make life easier for electricians wanting to self certify under Part P. ELECSA is proud to be at the forefront for Part P and the training of renewable energy which is becoming increasingly important as a means of reducing carbon emissions to support the Government's goal of reducing the UK's carbon dioxide emissions by 60% by the year 2050".

Steve Andrews, Director of WM Certification said "Alternative energy is the biggest growth area in domestic energy installations that the UK has ever experienced and we are excited to be at the forefront of this exciting initiative with ELECSA. Whether you are an electrician or tradesman wanting to take advantage of this business opportunity, the Installation of Wind Turbine course is offered on a timetabled open access basis twice a month in Chesterfield through it’s sister company WM Training.”

Information on ELECSA and Part P can be found at www.elecsa.org.uk. Companies can contact WM Certification at www.wmtraining.co.uk to book onto a Wind Turbine Installation course. The British Wind Energy Association is located at www.bwea.com.

The deferment rate is one of the most sensitive parts of the valuation as it is the investment multiplier applied to the assumed freehold vacant possession value of the flat at the end of the lease. Mary-Anne Bowring, creator of www.leaseholdersupport.co.uk explains:
When the Aribib case suggested in September 2005 that the deferment rate applied to lease extensions should be 4.75 % (akin to the investment markets) and for freehold enfranchisement cases 4.25 %, leaseholders all over London were stunned. The deferment rate is an investment valuation term that represents the percentage rate by which the right to receive either an income or a future capital value is postponed.  

While this judgement was not prescriptive on valuers, specialists within the industry pushed harder and harder for their freeholders, and deferment rates slowly moved from previous market rates which were around 6 percent  to 8 percent towards 4.25 percent and 4.75 percent. Bearing in mind that the vacant flat could be £150,000 in Tottenham to £6,000,000 for a river front penthouse, the impact was immense. For example on a £150,000 flat with 68 years unexpired at a deferment rate of 8 percent the value to the freeholder is £800, at 5 percent the value would be £5,435!.

During the period of September 2005 to September 2006 valuers had the freedom to negotiate the right capitalisation and deferment rates, depending on the location. Regional variances were emerging nationally and in London post code variances were commonplace.
It was on 15th September 2006 that the market changed again when in the Cadogan vs Sportelli the Lands Tribunal wrote their decision as a directive to valuers to apply a deferment rate of 5% for flats and 4.75% for houses. In fact, every case heard by the Leasehold Valuation Tribunal since has been determined on this basis.

However, there are 13 input factors in a lease extension valuation, some factual, such as the length of the lease and some where a valuer’s skill and judgement is not directed by the Courts. Therefore, there is still no easy answer to an innocent question from a leaseholder who asks, “if I have x years unexpired on my lease and my property is in SW5 approximately how much should the lease extension cost?” The valuer still has a significant role.
With this treatment at a Leasehold Valuation Tribunal it would appear that whether your case was being negotiated informally or whether you had already served a Section 42 notice to claim your right to a lease extension, the Sportelli decision will apply to you. A freeholder will argue that the Lands Tribunal decision is right as ground rent should be looked at as an investment. After all, the Freeholder has a choice of investing in equities (stocks and shares), gilts (government bonds) or property. Furthermore, surely investing in ground rent is no more risky than the former when the alternative to non payment is having your flat re-possessed by the freeholder!

The need to extend leases is increasingly becoming a necessity as one thing is certain every lease is getting shorter. Most selling agents will report an impact on sale prices and a reduction in the number of available and willing purchasers once the lease falls below 85 years. Of course if you live in an area where a short lease is commonplace and therefore the only option, buying a short lease may be a factor when choosing to live in that neighbourhood.
Recent case law decisions and changes to the market should not be seen as all doom and gloom as there have been significant benefits delivered to lessees over the years since the right was first established in 1993. These being:

a.    The landlord cannot claim more than 50 percent of the marriage value (the difference in value between the flat with a short lease and the flat with a long lease).

b.    In 2002 marriage value was reduced to Nil for all leases with more than 80 years unexpired.

c.    In 2002 the residency requirement was abolished (formally you had to live in the flat for three consecutive years or three years out of the last ten).

d.    It is now possible to claim a lease extension even if you are not UK resident or if the flat is owned via a company.

To qualify for a leasehold extension you will need to have owned the flat for two years. If you are contemplating buying a flat with a short lease and your negotiation skills are strong enough by virtue of Section 56 of the 1993 Act, you can get the seller to serve notice for you so you don’t have to wait two years. This could be critical if the lease has around eighty years unexpired, and marriage value is about to kick in. Clever use of this mechanism could save you thousands.

To understand more about each of the valuation factors you can visit the step by step guide at www.leaseholdersupport.co.uk

About Mary-Anne Bowring

Mary-Anne Bowring, Founding Director of Ringley Chartered Surveyors is a Member of the Royal Institution of Chartered Surveyors and a Member of the Association of Building Engineers. Since the Housing & Urban Development (Leasehold Reform) Act 1993 Mary-Anne has been advising in this specialist field and has presented cases to the Leasehold Valuation Tribunal (LVT). Mary-Anne has extensive detailed knowledge of building law and the Landlord and Tenant Acts. For the last 10 years Mary-Anne has managed the development of Ringley Chartered Surveyors building an Estates Department which manages 5,000 leasehold properties, a Survey and Valuation Department which has provides valuations to over 10 top banks and about 300 leaseholders/potential freehold enfranchisee’s annually. . Frustrated by the mysticism surrounding property and the absence of simple tailor made solutions Mary-Anne’s latest development is the launch of two web based products (www.leaseholdguidance.com and www.leaseholdersupport.co.uk) which are dedicated to supporting lessees through both legal and valuation procedures and providing knowledge, and financial administration for small blocks of flats.

Streatham is an area of south London that wears its urban identity proudly, yet balances it with natural beauty. With a High Road that winds for two miles and its proximity to a wealth of leisure activities, it's a busy, buzzy place. And with a wide choice of excellent open spaces nearby, it is easy to escape the metropolitan madness and relax with a leisurely walk.

Its name literally means 'hamlet on the street'. But however much the High Road seems dominant here, the true emphasis is very much on residential areas. Leafy streets are dominated by families, while there is also a considerable population of single people, attracted by the reasonable property prices and the quick links with central London.
Property in the Streatham area is much sought-after. The locale offers everything from Victorian and Edwardian terraces to elegant mansion blocks above commercial premises, from stately detached villas to between-wars bay-windowed semis. Buyers in this locality will find an excellent selection.

Entertainment is well catered for – in fact, with Streatham's ice rink and bowling lanes, nightclubs and nearby open-air lido, it is very much a destination for those from throughout south London and beyond. The tennis courts at Tooting Bec are also very popular.
Residents will find a good selection of the latest films at the Odeon cinema in the High Road, and there is a choice of blockbusters and art house films at the nearby Clapham Picturehouse and the Ritzy in Brixton.

Shopping is diverse and plentiful. All the big names can be found, along with smaller, funkier specialist shops and boutiques. For markets, Tooting and Brixton are famous nearby examples. Supermarkets large and small can be found, from Streatham Hill down to Norbury.
Good restaurants include Pizza Express and the Oriental stylings of Slurp. Many other cuisines feature, from Mexican to top-notch Indian food.
Transport is handy, with a choice of mainline stations including Streatham Hill, Streatham, Streatham Common and Norbury. From any of these, there are trains to both Victoria and London Bridge stations, making commuting particularly straightforward. Also, a wide selection of bus routes serves the area, placing such neighbouring areas as Brixton, Mitcham and Clapham within easy reach.

The true jewel of the area has to be its parkland. Not only is there Streatham Common, with its large areas of green space and beautiful Rookery, but lovely Tooting Bec is great for walking, open-air swimming in the
summer,tennis or just sitting and relaxing. Its variety and beauty attracts visitors from far and wide, mirroring the appeal of the Streatham area itself.

Cash-rich City workers are ready to put a chunk of the estimated £8.8 billion bonuses into the London housing market, according to haart estate agents. As a result, there is expected to be vastly increased demand for large family homes priced over £800,000 and high-spec one- to two-bedroom flats.

Haart has recorded a 25 per cent increase in registered buyers in the prime areas of London, where City workers are primed to spend their windfall.

Prestigious family properties in the capital are in high demand and as a result prices for family homes are set to continue to soar in locations such as Bedford Park in Chiswick, the Peterborough Estate in Fulham and ‘Between the Commons’ in Clapham. Canary Wharf will also see increased market action, as its location combined with its ready supply of high-end, low-maintenance apartments in exclusive developments such as Pan Peninsula, are just what the banker ordered.

The Olympic Village area is also set to soar, with the Icona development, due for completion next year, emerging as the area’s most sought-after investment opportunity.
Russell Jervis, managing director of haart estate agents, says, ‘There has already been a higher than usual number of buyers registered for this time of year as a result of the expected bonus bonanza. City bonuses have commonly been invested in bricks and mortar and we expect it to be no different this year. However, the flood of extra money will have a direct impact on the value of properties, particularly the properties ideal for buy-to-let investment, which command high rental yields, and grand family homes.’

Hallways are one of the most important spaces in your home, but their design and decoration is often overlooked compared to the rest of the house. The hallway gives an instant first impression of a home for visitors and is crucial in conveying the day-to-day tone of life to the home’s residents. And those who are trying to sell their home should make sure this important focal point is seen to its best advantage. Here are some recommendations.

1 Choose a front door with glazing

Hallways should be light and welcoming. By choosing a glazed front door you are allowing the light to flood in and creating a lighter, more airy and spacious feel to the home as soon as you enter. There is a wide choice of glazed doors available, with many different glazing designs from coloured to contemporary, plus toughened glass ensuring enhanced security. Sidelights are a great way to add even more light at the entrance to the home. They can be chosen to complement the style of the door and frame, adding character and distinctiveness.

2 Let the light into your hallway

Another way to maximise the amount of available light is by locating a window above an entrance door. There are a range of different styles available, such as attractive arched-head or semi-circular designs that really do exude style and elegance. Inviting light not just through the front door, but throughout the hallway is a good idea, so choose glazed doors for the rooms that lead from your hallway to enable the maximum amount of light to filter through. Many manufacturers now offer stunning internal glazed doors in a variety of colours and designs, that complement the style of a home, whether traditional or contemporary.

3 Paint your hallway light colours

Keep you hallway light and bright using neutral shades. However if you are a fan of colour then yellow is a great shade to choose as it has a warm appeal all year round. It is best to choose consistent colours leading from the hallways to adjoining rooms, which makes this important space feel an integral part of the house and ensures design continuity throughout your home.

4 Choose an appropriate light

Lighting makes all the difference in an enclosed space such as a hallway. A modern arty ceiling light or dramatic chandelier is a perfect way to complement a front glazed door as well as introducing that all important spacious feel to the home. Alternatively you can accentuate your stairs and glazed doors by choosing softer pools of light from wall lights, lamps or, if you have the space, a standard lamp. Lighting really is a relatively small investment but one that makes all the difference to your new look hallway.

5 Replace closed riser stairs with open risers

Stairs are an important feature of most hallways and you should consider the opportunities for the staircase to make best use of available light. Many modern staircases have open risers, which enables the light to shine through into the space below. Stairs with open risers also enable you to create extra room underneath them, which is great for locating a telephone, coat hook or shoe rack.

6 Make a feature of your stairs

It is surprising how important a staircase is not just to the hallway but to the home in general. Not only does it receive heavy use but it can also create a focal point to the home. If you are lucky enough to have stairs made from solid timber, they can be stripped back to the raw woodgrain and varnished or stained to allow the natural beauty of wood to shine through. If you are looking to change a stair carpet, it is worth considering the properties of lighter textured designs, which reflect the light as well as providing resistance against muddy footprints. Alternatively, you could continue a carpet runner style up the centre of the stairs and paint each side of the tread a soft cream colour to co-ordinate. If the budget is available, you could add smart brass stair rods to each tread to accentuate the overall look and feel.

7 Choose open spindles

Stairs with open spindles leading from the baluster make a hallway feel more airy and spacious, whereas traditional panelled-out staircases can feel enclosed and act as a barrier to natural light. Available in traditional and contemporary designs, spindles can add character and a decorative touch to your hallway. Elegant accessories can be chosen that add interest and appeal, for example there are a range of eyecatching newel posts and caps available that give the home a luxurious feel.

8 Add a mirror in the hallway

Mirrors double the perceived size of a room so are a great way of making your hallway appear much larger. A great trick is to hang the mirror lengthways, as most hallways are long and narrow, this gives a greater sense of dimension. They are also a great way of checking t