CJ Hole News

A day in the life of a Lettings Negotiator at C J Hole

Last week a colleague mentioned that a rival estate agent had said to her “Isn’t letting property easy”. He had only recently started to let properties for the first time. Our first thoughts were “If he thinks it’s easy, he probably isn’t doing it properly!”

Some people do believe that running a lettings office is easy money. This month we take you through a typical day at the office so you can see some of what is really involved.

Our office opens to the public at 0900 each day but by then we have already attended a lettings meeting to discuss in detail what properties we have available and which applicants may be suitable for them. By the end of the meeting we will have a structured plan in place for the rest of the day.

Today two of our staff will leave immediately after the meeting to attend an advanced legal training course. We are ARLA qualified and keep ourselves fully updated on lettings legislation. Other members of staff will attend the same training next month.

Before we have taken the first sip of our morning coffee, the property manager hands over keys to our inventory clerk so she can draw up a detailed inventory. This ensures that our landlords have an accurate record of the condition of their property & deposits can be returned to the tenant promptly at the end of the tenancy.

Shortly after, a tenant arrives. She is due to move into her first rental property. We have already referenced her and obtained a rent guarantee insurance policy for the landlord’s peace of mind. We have drafted a detailed tenancy agreement created by the specialist rental solicitors Painsmith and we have inserted any special break clauses or pet clauses that specifically apply to our tenant. We talk her through the agreement and ensure that she fully understands her obligations.

This tenant is renting a fully managed flat so we have already carefully checked the cleanliness of the property to make sure it is ready for her. We have also arranged for a welcome pack to be delivered today so that she will have some basic supplies to hand. A member of staff will meet her at the property later and he will go through the inventory with her, making sure the condition of the flat is noted and taking meter readings.

As soon as she leaves, her seat is taken by another excited couple who viewed a property the previous evening & want to put down a holding deposit. We take the initial payment to secure the property and give them their referencing paperwork to complete.

Our gas engineer arrives in due course. As usual he is carrying out annual gas safety certificates which we organise for all of our fully managed landlords. However, there is another legislation change which requires all boilers to be checked to ensure that flues can be properly inspected. In some cases this will involve fitting an inspection hatch. This has to be carried out by 31^st December 2012 so we have arranged for our engineer to complete a gas safety certificate, service & flue check at the same time for a heavily discounted fee.

Several more people arrive in our town centre office. One of them has come through from our sales department. He has just purchased a flat and is a first time landlord. We discuss our service levels with him in great detail. He starts by considering our let only service but by the time we have explained to him the technicalities of serving section 21’s, registering deposits, organising maintenance and keeping up to date with ever changing legislation, he decides that our fully managed service is excellent value.

After lunch a tenant calls in with a maintenance problem. The landlord has already given us a mandate to go ahead with works up to £200 so we are able to instruct the works immediately and drop the landlord an email as a courtesy. He has also just instructed us on another of his properties and the viewing we conducted this morning has gone particularly well. We like to give our landlords feedback on each viewing as soon as possible so we take the opportunity to update him by email as he lives abroad.

It’s now the end of the day and we have a valuation to carry out. There is a shortage of rental property and a great deal of competition between the agents. We have found that some agents bump up the valuation price or drop their fees to unsustainable levels to gain the instruction. But we know that it never pays to give false hope or drop our standards so regardless of the competition we give an honest valuation. This approach pays off and we gain another good instruction for the office. We will discuss what suitable applicants we have for the property at tomorrow’s morning meeting.

So there you have it - just a small glimpse of the things that take place in a lettings office. All our staff are friendly, open and honest. If we can help you with any aspect of the lettings process, please call us on 01242 255488 or drop into the office for a chat.

Home movers expect house prices to rise

More than a third of home movers expect house prices to be higher in 12 months’ time, the highest level since Q3 2010, research from Rightmove reveals.

House price confidence was strongly influenced by the mortgage market as among price-optimists,

35% reported an improving mortgage market and a further 14% identified continued low interest rates as the main reason for their view that prices would be higher 12 months from now.

Mortgage related concerns were even more prevalent amongst price pessimists with nearly two thirds collectively citing little or no improvement in mortgage availability, high deposits required by lenders and fear of interest rates rising.

Miles Shipside, Director of Rightmove, said: “While the most common view remains that property prices will be about the same one year from now, this is the most upbeat price forecast Britain’s home movers have delivered in nearly two years.

“The mortgage market continues to occupy home movers’ thoughts and there is evidence here that house price confidence is steered by their interpretation of mortgage availability.”

Paul Goverd, Managing Director at C J Hole in Southville said: “Rightmove are reporting from a national perspective and the property market varies enormously from location to location.

In and around Bristol we see absolutely no reason for any pessimism on property prices but urge prospective sellers and buyers to take local professional advice on values in order to best plan their move.”

Landlords upbeat about buy to let

Property investors are positive about the outlook for the buy-to-let market, research from specialist lender CHL Mortgages suggests.

Just under three-quarters (71%) of respondents to a CHL survey were positive about the prospects for the buy to let market, with only 5% feeling negative.

This percentage of optimists is a fraction down from the 72% recorded in November 2011 but 4% healthier than last summer’s survey.

The majority of landlords are happy with the size of their portfolio with 59% planning to sit tight, although just shy of a third (31%) intend to acquire more investment properties in the next 12 months.

This compares to 35% who were intending to expand in November 2011 and 33% in August 2011.

In terms of actual property purchases and adding to portfolios in the last 12 months 17% of respondents said they had bought property, 5% had sold, while 73% of landlords had conducted no transactions.

Regarding on-going tenant demand for private rental properties 41% of landlords thought it had improved in the past six months, while 54% felt it was the same. Overall landlords appear to be confident of a healthy and stable rental market at present.

Two-thirds (66%) of landlords rate their buy-to-let investment portfolio as a stable, resilient concern, while a cautious 28% have their eye on the Bank of England MPC and lenders’ own interest rate movements stating their portfolio may be vulnerable to any potential increases in rates.

Bob Young, Managing Director at CHL Mortgages, said: “Just under a third of current landlords intend to supplement their existing portfolios with further property acquisitions and this figure is likely to be complemented by new entrants and the usual smattering of accidental landlords, meaning the buy-to-let market is likely to remain in good health for the foreseeable future.

"A number of landlords are happy to sit tight and play the waiting game however and this could be down to a number of factors including the level of deposit now required to access finance, potential concerns about future interest rate rises and the fact many lenders are still finding it difficult to access funding lines and have less appetite to lend than historically.

“All in all, the buy to let market is a positive place to be at present and while landlords are not immune to wider economic uncertainty, they are confident in existing and future tenant demand, and where appropriate, and given the right finance arrangements, will be seeking to add to their portfolios.”

Paul Goverd, Managing Director at C J Hole in Southville said: “We are continuing to see strong interest from investors in acquiring property for buy to let and our mortgage advisers have a wide range of mortgage and re-mortgage schemes available for this purpose.

Tenant demand remains good and sensible yields are being obtained.”

CLG lobbies for private rental sector tax breaks

The Communities and Local Government committee has recommended that government simplify tax and regulatory structures that apply to private landlords.

CLG has put forward proposals in an effort to create an environment in which small private landlords are encouraged to expand their portfolios and invest in new build housing.

It said investment by large financial institutions and pension funds offered a potential source of finance for new housing in the private rented sector.

However it acknowledges that many considered that the sector would continue to be dominated by smaller landlords.

Nigel Terrington, chief executive of Paragon, provided evidence to the committee on the importance of the private landlord. He said that Paragon was broadly pleased with the recommendations in the report.

And he added: “That said there is not enough recognition of the essential role played by the private landlord and the contribution they make in providing homes for millions of people in the UK.

” Terrington said there was a great deal of effort which went into policy development around expanding the scale of corporate and institutional investment. He however said: “Not enough thought has been given to how we expand and motivate the model which already works in terms of the private landlord.

“There is a need for a larger and more diverse private rented sector to accommodate the growing demand from tenants. Private landlords have demonstrated over many years their willingness to expand the supply of rented property. “We need policy developments that work with private landlords, not ones that get in their way.”

Paul Goverd, Managing Director at C J Hole in Southville added: “The private rental sector now represents approaching 20% of the UK housing stock and is an important part of the housing mix of socially rented, privately rented and owner occupied property.

It is important that Government policy reflects the importance of this market and encourages a sensible level of supply to meet tenant demand.”

Q: What’s the value of a good neighbour? A: £15,321 says report.

Brits would pay an additional £15,321 for a home if they knew their next door neighbours would be trustworthy, quiet and courteous, research from FindaProperty.com reveals.

The findings reveal an increasingly isolated Britain in which 9.5 million (19%) people say they wish they had a stronger relationship with their neighbours and only 39% would actually call them a friend.

Some 40% of people surveyed said that they would be willing to pay more for a home if they knew the person living next door would be a good neighbour to them. The average amount that people would be willing to pay, on top of the price of the property, was 7% – equivalent to £15,321 – although roughly 1.5 million people would pay a premium of more than 20% (£43,837+) for this additional peace of mind.

The same study also revealed that almost 13 million (26%) people in the UK don’t actually know their next door neighbour’s full name and two in five (22%) don’t know what they do for a living. 3.5 million (7%) people in the UK have no idea who they live next door to, while a further 1.5 million (3%) admit to feeling threatened by their next door neighbour.

Samantha Baden, property analyst at FindaProperty.com, said: “One of the things people want most from a home is to feel safe, comfortable and welcome, and this is almost entirely dependent upon the people who live nearby.

“It’s not just tangible factors like transport links and square footage that contribute to property price – the strength of the local community is a real selling point for many buyers too.

“The fact that people are willing to pay more than £15,000 to live near a good neighbour highlights the importance of community and security when choosing a new home. We may not want to borrow a cup of sugar from our neighbours, but we do want the peace of mind in knowing that we live next door to someone who is courteous and trustworthy.”

Paul Goverd, Managing Director at C J Hole in Southville added: “Clearly enjoying a good relationship with one’s neighbours is a key factor in enjoying living in a particular property. Having sold many thousands of properties over C J Hole’s history, I am pleased to be able to say that the instances of people moving because of “bad” neighbours has hardly registered with us.

I believe this says something in general about people’s ability to get on and enjoy living in harmony with their neighbours.”

New homes shoot up nearly 6% in price

The average price of a new home in England & Wales is now £231,304 according to SmartNewHomes.

The average price of a new home is now £231,304, after rising 1.9% in the first three months of this year, and by 5.9% over the past year.

By contrast, the average price of a home in England and Wales is now £160,372, according to the latest Land Registry data, and is 0.6% down on a year ago.

Steven Lees, director of website SmartNewHomes, which released the figure for March, said: “House builders have reported a strong start to the year, with unwavering demand from buyers, and this is reflected in the strength of new-homes prices.

“The launch of NewBuy and the NPPF in the first quarter of the year have contributed to positive market sentiment, and the announcement from HSBC that they are increasing their maximum loan-to-value on new-build properties is further evidence of this faith in new homes.

“We are hopeful that many more lenders will follow suit in the coming weeks.“Reports of a double-dip recession from the Office of National Statistics could take some of the wind out of the property market’s sails.

“However, developers continue to offer an array of innovative deals and incentives to keep new homes affordable for buyers, and we expect demand to continue to underpin prices this year as the shortage continues.”

Paul Goverd, Managing Director of C J Hole in Southville said: “The price of the average new home has traditionally been higher than the equivalent second hand property and continuing low volumes of new home starts across the country potentially makes prices subject to greater distortion.

The real issue for the new homes market is one of volume and it is to be hoped that these positive pricing figures may see more developers start building schemes on the large amounts of land they currently hold in abeyance awaiting the right economic climate in which to proceed.”

Normal Service is Resumed

It is the height of the moving season andJeremyProsser of C J Hole takes a look at how the property market is shaping up this spring.

Here we go again. Double dip. What will the property market do now? When will it ever get back to normal?

Well, the mortgage lenders are still being difficult and the conveyancing process seem to be taking forever to process sales. Buyers are being especially choosy and, bizarrely, some are even letting the internet influence what they should pay for a property rather than the market. Some sellers still think it is 2007 with prices to match. Surveyors are ever more cautious.

These are everyday issues that affect all those involved in buying and selling property. Plus there are the other annoyances like Stamp Duty changes, and confused and conflicting reports made by industry ‘insiders’ in the press.

What should a sensible buyer or seller do? The answer is to forget all of the above and get on with your move.

If you wait for things to get back to “normal” you will wait forever because there is no normal in property. We are where we are now. Tomorrow may be better or it may be worse. But who really knows. So make the most of it now and move on. Don’t look back.

There may be ups and there will certainly be downs along the way. But the best advice from the people who understand the property market most of all – estate agents - is don’t wait for things to get back to normal. This is normal, or as normal as it gets.

Landlords increase portfolio sizes

Landlords increased their portfolio sizes by 1.8 properties over the first quarter of 2012, research commissioned by Paragon Mortgages reveals.

The report produced by BDRC Continental showed that the average portfolio size was 10.8 properties accommodating 1.3 tenants per property.

Of those landlords that took part in the survey, a fifth said that they expected to purchase property in the next 12 months.

However around 35% of Paragon Mortgages customers said that they expected to add to their portfolio in 2012.

John Heron, director of Paragon Mortgages, said: “It has been a steady and progressive start to 2012.

Whilst landlords are still benefitting from attractive market conditions, there is still a long way to go to meet the increasingly high level of tenant demand.

“More investment across the private rented sector is needed during the coming year to help to meet this demand.”

Paul Goverd, Managing Director at C J Hole in Southville said: “The findings in this report clearly indicate the confidence felt by most landlords in investing further in the private rental sector.

Demand for property remains high and access to buy to let funding is good for those who have deposit funds or are not highly geared.”

The area we cover at CJ Hole Clifton

BS1, BS2 : Kingsdown, City Centre, Harbourside, Brandon Hill.

BS6 : Redland, Cotham.

BS8 : Clifton, Cliftonwood, Hotwells, Leigh Woods, Abbots Leigh, Failand.

BS9: Stoke Bishop, Sneyd Park.

North Somerset.

We give exceptional service, but dont just take our word for it.

Branch CJ Hole Clifton Sales (as a Buyer) Experience: Would you use the agent again? Yes Good and professional service from start to finish, highly important to someone like me, a foreign buyer, living abroad. Lee was always easily available through e-mail, kind and patient, and followed the sale efficiently right up until completion, solving all my doubts. I would not hesitate to use CJ Hole again and have already recommended the branch to other people in my country.

Branch CJ Hole Clifton Sales (as a Vendor) Experience: Would you use the agent again? Yes I sold a property through CJ Hole Clifton and I was amazed at the helpfulness of the staff, especially Lee who monitored everything with my house sale and kept in regular contact. I would definately recommend them to anyone.

95% Loan To Value mortgage products double

The number of mortgage products offering maximum loan to values of 95% has more than doubled over the past year from just 27 to 61 today, figures from Moneyfacts reveal.

Deals with a maximum LTV of 90% have also increased to 316 today compared to 228 this time last year, an increase of 43%.

Combined with an increase in product volumes, average rates for high LTV deals have reduced.

Today the average 2-year fixed rate at 95% LTV is 5.52%, down from 6.49% from April 2011. The previous year there were no 2-year fixed deals at 95% LTV.

The average 2-year fixed rate at 90% LTV today is 5.45%, down from 6.05% in April 2011 and down from 6.48% in April 2010.

Louise Holmes, spokeswoman at Moneyfacts, said: “Over the past couple of years we have seen the high LTV mortgage market stage something of a comeback, mainly due to high demand from borrowers with limited deposits.

“The first-time buyer market is often considered to be the life-blood of the housing market and mortgage lenders recognise this. Risk is still a major factor however and the majority of mortgages with high LTVs require the financial backing from a third party such as a guarantor as well as strict credit checks and lending criteria.

“These latest figures will be good news and a welcome relief to many borrowers who have struggled to find suitable mortgage deals within their financial capabilities."

Paul Goverd, Managing Director at C J Hole in Southville said: “This is clearly good news for the property market although I strongly advise potential buyers to take professional advice as the detailed terms of mortgage schemes vary significantly.

Our mortgage advisers will be pleased to assist you in finding the most appropriate scheme for your circumstances.”

April market comment

Planning the Future Following the recent government announcements on planning Howard Davis of CJ Hole Clifton takes a look at how they may effect future housing development.The government’s new planning proposals have had a rough ride over the past few months - and rightly so. Early drafts were not promising and they threatened disjointed, short sighted and self-serving policies that may have put decisions in the hands of disjointed organisations, short sighted people and self-serving business concerns.But all is not yet crystal clear. The phrase ‘sustainable development’ seems to have caused confusion in many, including some of the politicians and planners themselves. If it means we will now build homes that people will be proud of in fifty years then that sounds like good sustainability. But if it means homes of which we will be so ashamed we will tear them down in several decades – as we have with so many from the 1960s - then that, patently, is unsustainable development.The final draft however has been met with guarded and grudging approval – even from bodies such as the National Trust and Friends of the Earth.The policy of Brownfield first must be right. To make use of urban regeneration while protecting our countryside wherever and whenever possible still provides enormous opportunities for much needed house building.Where rural development is considered let us hope that planners are mindful of their duty to our heritage. It is our children who will have to live with their decisions, as we have had to live with many poor decisions made by their predecessors. Bringing new life into rural communities is important and modern technologies like broadband can attract people who will live and work in a community and not just sleep in it. The government wants to concentrate more on reviving our flagging town centres and less on out of town retail parks. They could be too late for that. The public may have moved on a step or two further than government thinking - as is sometimes the case. So an enlightened vision on how we could bring mixed use to struggling town centres, including residential development, may be a way to move forward.But whatever the future brings at least we now have a planning policy that, broadly speaking, people can get behind and which will enable planners to get planning and builders to get building. All we need now are the mortgages to help buy what is built. But the government didn’t mention anything about that . . .

Average mortgage rates rising

Average mortgage rates for two-year fixed, five-year fixed and two-year trackers have risen this month

Average mortgage rates for two-year fixed, five-year fixed and two-year trackers have risen this month, figures from Moneysupermarket reveal.

The average two-year fixed rate has risen to 4.15% up from 3.82% in October 2011. The increase means a difference of £327.72 per year for repayments based on a £150,000 mortgage.

Similarly five-year fixed rates hit a low in January with an average rate of 4.57% but this has crept up to 4.72% adding an extra £153.72 over the course of a year.

The average rate for two-year trackers now stands at 3.63% up from its lowest level in August 2011 at 3.37%, hitting borrowers with an extra £250.92 over the year.

Coupled with the recent standard variable rate hikes by lenders which come into effect in May, comparison site Moneysupermarket urged borrowers to check their mortgage arrangements. It estimated that approximately one million customers would be affected by the increases announced by providers.

Clare Francis, mortgage spokeswoman at Moneysupermarket.com, said: “Mortgage rates are nudging upwards so anyone looking for a mortgage or whose mortgage deal will end in the next few months should act sooner rather than later to secure one of the current rates in case they rise further.

Paul Goverd, Managing Director at C J Hole in Southville agreed saying: "There are still opportunities for those looking for a mortgage loan to buy, remortgage or acquire a buy-to-let investment to secure a loan on outstanding terms.

Our mortgage advisers have access to the whole mortgage market and will be pleased to advise."

HSBC survey says home improvements fail to add value

According to HSBC, the improvements that still add value are new kitchen, bathroom and loft conversion.

According to the latest Home Improvement Survey by UK bank HSBC, home improvements are no longer adding as much value to the property as they did a year ago.

In fact, homeowners might even lose money opting to increase the asking price.

According to HSBC, the only improvements that still add at least some value are new kitchen, bathroom and loft conversion.

They, however, will only add around 16,000 pounds, which compares to 21,000 pounds last year.

According to estimates of Econoloft, UK leading loft conversion company, the typical cost of loft conversion amounts to 20,000-30,000 pounds. This means that the home improvement is going to cost more than the added value.

Commenting on the findings, Peter Docker, HSBC head of mortgages, said: "Homeowners should think carefully about the type and extent of any home improvement works they are planning. Those which enhance quality of life while retaining broad appeal should be favoured over more individually-styled alterations."

Paul Goverd, Managing Director at C J Hole in Southville said: “This survey may grab some headlines but in the main, making improvements to a property will add value. It may however not immediately add back as much value as it costs.

Naturally, improvements should be in keeping with the property. For example, it may be excessive and not a good investment to put a £40,000 kitchen in a £200,000 property but it might well be worth installing in a property costing say £800,000.

Most home improvements are made for the benefit of the home owner and not to try and make a “quick buck” therefore the cost vs benefit equation may be different. Some improvements will add more value than others and at C J Hole our highly experienced staff will be more than pleased to advise.

OFT makes agent’s money laundering register public

A searchable register of estate agents supervised by the OFT for anti-money laundering purposes has gone public for the first time.

It lists 6,742 estate agents.

Under the Money Laundering Regulations 2007, all estate agents have to be registered with the OFT.A non-public register has been in place since 2009 but the new public register will allow the public, industry and regulators such as Trading Standards to check – and to notify the OFT if agents are not registered.

The register also allows agents to make sure their basic information is up-to-date and accurate.Failure to register a business could result in the imposition of a penalty by the OFT and/or prosecution.

The level of compliance among agents is not known, but the OFT’s anti-money laundering compliance team uncovered 192 unregistered businesses in England, Wales and Scotland in 2011.

All have since registered, although penalties totalling £11,500 were imposed on five businesses.

David Fisher, OFT Director of Anti-Money Laundering, said: “By making our register available for all to see, we hope to encourage businesses that should be listed to come forward and register, and others to tell us about businesses that are not registered.

“The penalties for not registering are significantly higher than the costs of registering.”Estate agents are those businesses engaged in estate agency work as defined by the Estate Agents Act 1979, and includes property finders and property auctioneers but not letting agents.

The register can be searched here: http://www.oft.gov.uk/OFTwork/aml/amlsearch

Paul Goverd, Managing Director of C J Hole in Southville said: “I would urge the public to check that any agent they are considering engaging is registered with the Office of Fair Trading and are also members of the Property Ombudsman Scheme which provides independent redress in the event of something going wrong and a complaint against the agent being upheld.

At C J Hole we strongly support professionalism and appropriate regulation of the industry.”

New buyer interest edged up in March, says RICS

Interest in the UK housing market edged up in March according to a new survey.

The Royal Institution of Chartered Surveyors (RICS) said that, during the month, 9% more surveyors reported a rise in inquiries from potential buyers than those reporting a fall.

RICS said the warmer weather encouraged some potential buyers, while others wanted to snap up properties before a holiday from stamp duty ended. But prices in all regions except London continued to fall.

Overall, 10% more surveyors reported falling house prices in March than those reporting a rise.

However, this was the least negative reading since June 2010.

The declines in prices were modest, RICS said, with surveyors reporting price falls of up to 2%.

Northern Ireland saw the biggest increase in the proportion of surveyors reporting falling prices.

"There has been a gentle increase in activity across the market in the early part of the year but it remains to be seen whether this can continue, given the changes in the Budget and ongoing problems affecting the economy," said RICS' chief economist Simon Rubinsohn.

"London continues to outperform the rest of the UK in terms of prices but, interestingly, the North West did see an increase in activity in March." The RICS survey covers the UK, but it collects most of its data from England and Wales.

Some buyers were keen to make a purchase before 24 March, the deadline for first-time buyers wanting to take advantage of a holiday from 1% stamp duty on houses costing less than £250,000.

The stamp duty tax band is being reintroduced because Chancellor George Osborne believes the holiday has not been effective in encouraging more people to buy a home.

Instead, the government is introducing other incentives to persuade lenders to offer loans to potential buyers.

Paul Goverd, Managing Director at C J Holein Southville said: “Spring is a traditionally strong time for the housing market and 2012 looks to be no exception.

Whilst the market is undoubtedly affected by regional factors, in London and the Southern parts fo the UK, the levels of activity are strong and prices are generally higher than they were before the credit crunch.

Our Southville office is recording good levels of instructions and sales and shall be pleased to advise any homeowners on their own individual property and situation.”

ARLA advises homeowners on renting out properties when they cannot be sold

According to ARLA in the last quarter of 2011, 47 per cent of its members witnessed an increase in the number of rental properties coming onto the market because they could not be sold

According to ARLA in the last quarter of 2011, 47 per cent of its members witnessed an increase in the number of rental properties coming onto the market because they could not be sold*; a rise from 18 per cent just a year before.

ARLA's Operations Manager, Ian Potter, said: "The rise in this figure suggests that homeowners struggling to sell their homes due to the sluggish market are increasingly looking to the private rented sector to utilize their property in the short term.

"It's likely that many of these reluctant landlords will be attracted by the flexibility of a short-term let. Renting a home on a shorter basis can be a good option for anyone who has found a buyer for their home, but not found the right property to buy themselves. Equally, for anyone 'testing' a new area before committing to move there, or working away from home for short periods, renting can offer more stability and home comforts than a hotel.

" Short-term lets can range from one week to a few months, and they are particularly common in cities where major events are held, such as the London Olympics and the Edinburgh Festival.

Tim Hyatt, President of ARLA said: "It is important to be wary of the potential pitfalls when renting out a property short-term, especially if it has previously been owner-occupied. No matter how short the tenancy, it is critical that landlords take a planned and professional approach.

" To mitigate some common risks, ARLA advises the following: Pre-agree bills- Tenant payment of utility bills over a short term can be problematic, therefore it is best to set a price to cover costs at the start of the rental period. This avoids the occasionally problematic issue of recouping or disputing costs.

Prepare the property for rent- As with long-term lets, it is wise to thoroughly clean the entire property and insure the small details, such as replacing light bulbs and clearing outside areas are done before prospective tenants visit or move in to the property. If you are moving out of your home to turn it into a rental property, ensure it is free from personal effects and put some items into storage if necessary.

If you are renting out your own home for the first time, notify your mortgage and insurance providers as you may need to amend the terms of both if you are changing the use of your home to a rental property.

Be aware of tenants' expectations- With short-term lets, tenants often expect amenities that are not usually offered in the private rental sector; a common example is the assumption that the landlord will provide a cleaning and laundry service for bedding.

Be careful when it comes to payment -Offering a variety of payment options, where possible, can encourage prospective tenants. It should be noted, however, that taking card payments can often represent an unacceptable degree of risk for the short-term landlord. Regardless of payment type, it is always worth ensuring funds have cleared ahead of the start of the tenancy. If funds are being transferred direct to your bank account, it is always best to use a dedicated account.

Meet the incoming tenant -Do not arrange for keys to be collected through a third party other than a reputable lettings agent. It is far safer to meet and hand over keys in person, explain the workings of your property and agree when you will collect the keys at the end of the tenancy.

Tim Hyatt added: "If these tips are followed, it should be possible to strike a balance between remaining flexible with your rental offering and being a responsible short-term let landlord. Any potential tenants must use an agent with experience in this area - to ensure a transparent and flexible arrangement." Landlords should also be mindful that if a deposit is taken, it is likely to require protection through a Tenancy Deposit Scheme such as TDS.

*Data taken from the ARLA Members' Survey of the Private Rented Sector, covering Q4 2011 and Q2 2010. All surveys and statistics can be downloaded from http://www.arla.co.uk/

ARLA's top tips for 'generation rent'

Figures from letting agents suggest that the UK's need for rental properties continues to grow

As demand in the Private Rented Sector (PRS) continues to outstrip supply, the Association of Residential Letting Agents (ARLA) has today issued advice to anyone embarking on a first-time tenancy.

Figures from letting agents suggest that the UK's need for rental properties continues to grow: Over half (55%) of ARLA members* reported that they had more tenants on their books than available properties to rent.

Ian Potter, operations manager at ARLA, said: "Renting is often seen as a low-hassle, lower risk option when compared to purchasing a home, yet many people find the prospect of renting a home daunting, whatever their age or experience."

"First time tenants - young or old - should remember to keep the process as focussed and simple as possible. Keeping to some simple guidelines can help tenants navigate the process from property hunting to signing a tenancy agreement. ARLA has the following advice to help make the process as smooth and trouble-free as possible for 'generation rent':

1. It can pay to research your desired postcode:Be aware of the average rental rates in your desired area to avoid any surprises when looking for a property within your price range. A local lettings agent should be able to give you a better idea of how much you should expect to pay for the type of property you are looking for. Sometimes moving even a mile away , or simply over the road or round the corner from your target property can get you a lot more for your money.

2. Lettings is an unregulated industry:The rental industry is not subject to any government legislation, meaning that anyone can set up as a letting agent or landlord. For peace of mind, do your research and seek advice from a letting agent affiliated to a professional organisation like ARLA. All ARLA agents must adhere to a strict code of conduct, as well as offering client money protection and redress schemes, which protect consumers if things go wrong.

3. Your deposit should be secure: A rental deposit can often represent a significant initial outlay for tenants and is typically the equivalent of six weeks' rent. It is a legal requirement that the landlord or lettings agent protects the deposit through a tenancy deposit scheme, such as the TDS, which guards against possible misappropriation of monies. Tenants can find out more atwww.direct.gov.uk

4. A professional inventory can help protect you:A well prepared, detailed inventory assists in getting fair decisions at the end of your tenancy. Make sure that you thoroughly check the inventory provided and that you are happy it accurately covers anything you have concern about. If there are photographs make sure they are good quality and reflect accurately any items captured. All documents should be signed and agreed by both landlord and tenant.

5. There are different kinds of tenancy agreement: Many shared tenancies contain a joint liability clause and this means you are responsible for the actions of your co-tenants for the duration of the tenancy. This includes covering their share of the rent if they were to unexpectedly move out. Before you enter such an agreement consider how well you know your sharers. And if you are asked for a guarantor when sharing, then make sure that they understand that they are guaranteeing all your responsibilities contained in the tenancy agreement.

Home affordability hits nine-year high according to Lloyds TSB

The average price for a city home in the UK stands at 5.5 times gross annual average earnings - the lowest ratio since 2003

New data highlights “substantial” north/south divide with average house price/average earnings ratios differing from 3.8 to 9.71.

The average price for a city home in the UK stands at 5.5 times gross annual average earnings - the lowest ratio since 2003, Lloyds has revealed. According to the most recent Lloyds TSB affordable cities review, the average price of a city home is £173,202. The latest ratio is an improvement on the 5.7 times gross average earnings in 2011 and significantly below the peak of 7.2 in 2008.

Lloyds said the main driver of the improvement in affordability is the fall in city house prices. Since 2008, the average city house price has fallen by 18 per cent, from £210,605 in 2008 to £173,202 in 2012.

The data highlighted the “substantial” north/south divide among UK cities. All sixteen of the most affordable cities for homebuyers are in the north and the 15 least affordable cities are all in southern England.

The data showed that Salford, in the north-west, is the most affordable UK city with an average property price of £102,391 which is only 3.8 times gross average annual earnings. Lloyds said this partly reflects a 32 per cent fall in house prices in this part of Greater Manchester since 2008.

The next most affordable cities are Londonderry with an earnings ratio of 3.87 and Bradford with a ratio of 3.98. Seven out of the eight most affordable cities are in Northern Ireland and the north of England. Truro and Oxford are the UK’s least affordable cities.

Truro has an average property price of £250,489 which equates to 9.71 times gross average earnings in the area and Oxford has an earnings ratio of 8.8.

Suren Thiru, housing economist at Lloyds TSB, said: “The improvement in housing affordability within many of our major urban conurbations has been significant during the past few years and reflects the decline in house prices over the period. There is, however, a distinct north-south divide to the locations of the most affordable UK cities.

“Looking forward, the marked improvement in city affordability is likely to help support demand for those able to enter the housing market. Much of this benefit, however, maybe offset by the continuing difficulties many households face in raising a deposit and uncertainty over the outlook for the UK economy.

” The Bank of Scotland recently released its own home affordability review, which reported that the average price for a city home in Scotland is £158,706. Standing at 4.96 times gross average earnings, this represents the lowest ratio since 2004. Stirling and Inverness emerged as Scotland’s most and least affordable cities, respectively.

Paul Goverd, Managing Director at C J Hole in Southville said: “This report again highlights the significant regional variances in both prices and market activity. Whilst this report focuses on cities, in the Home Counties, prices have held up strongly during difficult economic times and are now at higher levels than were seen in 2006.”

Mortgage fees hit new peak

Mortgage fees have hit their highest level since records began, figures from Moneyfacts reveal.

Initial residential mortgage rates have, however, continued to fall in most cases compared to three years ago.

The average deposit needed for a mortgage currently hovers around the 25% mark down from 40% three years ago.

Rachel Springall, spokeswoman for Moneyfacts, said: “Over the last three years mortgage choice has almost doubled, which will be good news to prospective borrowers. “The number of higher loan-to-value mortgage products has increased, giving more choice to borrowers with limited deposits.

“While the number of mortgage deals has increased, fees are at their highest since Moneyfacts records began, so consumers need to check the true cost of any mortgage offer.

“Borrowers affected by an increase to their SVR should review their repayments and consider shopping around for the best deal rather than assume it will come from their current lender.”

Paul Goverd, Managing Director at C J Hole in Southville said: “Standard variable rates have been increasing recently although the number of mortgage schemes available have increased and the amount of deposit required has become more flexible.

Now is an excellent time to look at borrowing, either for house purchase or buy to let or, to consider re-mortgaging if choosing to stay put, as many fixed and tracker mortgage schemes look very attractive when compared to standard variable rates at the moment.

Our mortgage advisers will be happy to discuss your individual requirements and provide the best solution for you.”

Market Comment - Budget 2012

Spare a thought for the poor millionaire now forced, through this year’s UK Budget, to pay more for the privilege of using central London’s booming luxury property market as a safe haven for his investment funds, away from unhealthy currencies. Spare a thought also for home-grown millionaires in other UK property hot spots. They too will be caught in this new 7% Stamp Duty trap of the Chancellor’s making. Any attempting to escape is futile – tunnelling under the higher tax barrier through the means of an offshore or foreign company has been stopped by way of a massive 15% Stamp Duty.

Will this have much impact on the property market generally? Not really, as the early introduction of these measures leaves no room for a mansion-tax-beating rush to buy, and this is a one-off measure aimed at those who really should be able to afford it. So the impact on sector values should be negligible. All in all this new measure will probably be met with a sigh of resignation rather than a decision to spend a million or two less, just to avoid the extra tax. But do expect to see fewer houses on the market at £2.1 million and more at £1.99 million. And, who knows, perhaps this top level of stamp duty could even become a trendy new status symbol for the wealthy.

Of greater significance is how the Budget affects the rest of the property market. Apart from the small tax benefit to the lower paid there seems little in the Budget to stimulate much greater activity, save for a few small pieces of new legislation that somehow fit into the jumbo jigsaw that is our nation’s fiscal recovery. But perhaps the Chancellor has taken the view, “physician, heal thyself”. Under the radar of the British property press (which is none too sensitive) the market in many places has quietly been perking up. There have been rumours of first time buyers – tempted out of hiding before the end of their own special tax relief; also, even one or two mortgages have been granted. Up and down the country many estate agents cautiously report increased sales figures. This means several things: buyers are on the move and agents are valuing reasonably. Most importantly, sellers are listening to reason rather than the little voice of avarice that we all have, but which needs to be mastered when selling property in sluggish conditions.

The government’s move to relax the building rules in rural areas could vie for attention with the Budget. This should be of concern to everyone as it is our heritage which could be under threat of concrete. Visions of bulldozers parked on the village green will cause outrage. And when developers, who through the Budget will now receive some extra funding for new homes, meet head to head with Britons-in-bloom there will be strife. And there should be. But this relaxation may bring new life to struggling rural communities as well as providing much-needed housing. So it will be very much up to local planners to prevent a 1960s style architectural catastrophe. Also the public will need to demand thermally efficient, economical, affordable but stylishly attractive and appropriate homes which will sit comfortably in a rustic environment.

So, the verdict on the 2012 budget, as far as the property market is concerned, seems to be neutral.

Property market to pick up in 2012

Early indicators suggest that property market activity in 2012 is on course to be more robust than in 2011, Rightmove claims.

New sellers’ average asking prices are up by 1.6% this month and are seeing their strongest start to the year since 2004, fuelled by the continuing shortage of suitable stock and a jump of 16% in search activity on Rightmove during the first quarter.

While these statistics indicate increasing confidence in some sectors of the market, Rightmove said the recovery remains patchy and because transaction volumes remain low, the market is sensitive to external influence.

There is evidence that first-time buyers are working hard to raise the substantial deposits required to access mortgages that allow them to get onto the housing ladder.

However, they are now faced with the double blow of losing their 1% stamp duty exemption between £125,000 and £250,000 and asking prices circa 3% higher than a year ago on their target market of terraces and flats.

Miles Shipside, director of Rightmove, said: “For a first-time buyer it’s already hard enough to raise the necessary deposit and now, as well as potentially losing between £1,250 and £2,500 in stamp duty exemption.

“And asking prices for their target property types have increased by over £5,000 in the last year as well.

“The stamp duty holiday was designed to promote activity in the moribund housing market, helping first-time buyers to get onto the housing ladder, and as a consequence releasing others to climb up the rungs too.

“With some promising indicators of activity so far in 2012, there are finally some signs that this is playing an important role.

“The question is: can the Chancellor afford to spring a surprise and extend the stamp duty exemption?

“If not, what are the potential costs of leaving the UK re-sale property market without any incentives?”

Shipside said the recent launch of NewBuy may counteract some elements of the removal of the stamp duty exemption.

But he added: “Due to its focus on the new build sector, to support Government’s efforts to create jobs, this is of little consolation to those people looking to buy or sell on the resale market.

“The 110,829 properties marketed by estate agents in the last four weeks saw average asking prices rise by 1.6%, the highest figure recorded in the month of March since 2004.

“This is on top of the very strong 4.1% rise reported in February, and has resulted in a 4.9% rise so far in 2012.

“This is also the most buoyant new year price bounce since 2004, when prices surged by 5.0% in the same time frame.”

With estate agents both north and south reporting some encouraging seams of activity in select market sectors, average asking prices are now 2.2% higher nationally than a year ago.

Those property types favoured by first-time buyers have seen the largest price rises in the past 12 months.

Terraces are up by 2.8% and flats have risen by 3.1%, outperforming semi-detached and detached property types.

This suggests a pick-up in activity from first-time buyers and Buy-to-letinvestors at the lower end of the market.

However, sellers of properties between £125,000 and £250,000 will be concerned that the loss of the first-time buyer stamp duty incentive reducing their target audience of potential buyers.

Around 40% of the properties currently on Rightmove are priced within in this bracket.

Shipside added: “First-time buyer attempts to get onto the property ladder are often frustrated by competition from investors whose large deposits make them a lower risk prospect for lenders and a safer bet to sell to.

“With the pending removal of the ‘stamp duty exemption ace’, first-time buyers have even fewer cards to play in their attempts to get onto the housing ladder.

“With potentially fewer active first-time buyers in the market between £125,000 and £250,000 there will also be concern for the two out of five sellers currently on the market in this price bracket”.

Research by Rightmove amongst first-time buyers intending to buy in the next 12 months indicates that over half (52%) are able to put down a deposit of between £15,000 and £40,000.

Shipside said: “It’s a kick in the teeth if you have saved hard, or begged and borrowed a meaty deposit and have just missed out on the bonus of avoiding stamp duty.

“There’s the hope that sellers will take a lower offer to compensate, but that pre-supposes they can afford to do so or there is not a cash-rich investor buyer waiting in the wings.

“The alternative may be to look at whether NewBuy is a viable option to make your home ownership dreams a reality, but that pre-supposes you are interested in a new build property.”

Consumers positive about buying

The Building Societies Association say that almost half (44%) of consumers think now is a good time to buy property while the number of people predicting an uplift in house prices this year rose to 41% in March.

The Building Societies Association said consumer sentiment had increased markedly since December when just 33% thought prices would rise.

Across the UK, consumers in the South East are the most bullish with 53% forecasting that property prices will go up and 14% saying that they will fall.

Those in Wales are the least optimistic on price with a fairly even spread between expectations of an increase (30%), a drop (29%) and no change (22%).

Despite these improvements the BSA said it was clear that significant barriers are still in the way of aspiring home owners and growth in this sector, not least rising fears over job security.

This was cited as a barrier by 56% of all respondents, up from 54% in December 2011.

This concern was most acutely felt amongst women (59%) and across 45-54 year olds of both genders (65%).

The number of people who saw stamp duty as a barrier also rose, up from 10% to 12% between December 2011 and March 2012.

This may be a reflection of the psychological impact of the termination of the first time buyer stamp duty holiday at the end of this month, the BSA said.

Of all respondents, 17% said that they were looking to buy property in the near future.

This is made up of first-time buyers (6%), previous owners looking to move to another home (8%) and Buy-to-letinvestors (3%).

The strongest intentions to buy are seen in Wales, where 23% of respondents said they were looking to buy, particularly first-time buyers (14%). In London 22% of respondents intend to buy.

By contrast, the lowest intentions to buy were recorded in the West Midlands and the East of England with just 13% saying they intended to purchase property in the near future.

Describing their intentions, 17% of the under 35s surveyed said that they were looking to buy their first home.

Over six in ten of those surveyed (62%) said that they already owned their own home.

Of these 84% said that they had no intention of moving in the near future.

There are indications that a proportion of this group will not be moving as they currently face significant barriers obtaining a new mortgage or raising a deposit.

It is possible that this may also reflect little or no equityin their current property for some.

This group were particularly concerned about job security, with 62% of citing this as a barrier, compared to 44% of owners who were looking to buy property sometime soon.

Paul Broadhead, head of mortgage policy at the BSA, said: "The majority of home purchases are made because a consumer wants rather than needs to move house.

“This means that consumer sentiment is a useful leading indicator of future sales activity in the housing market.

"It is good to see some positive indicators, price change or an expectation of price change can stimulate activity although inevitably it isn't good news for all.

“Some commentators are waiting for the market to return to normal, I am not one of them.

“After all, exactly what is normal? If you look back through the last few decades it has been a number of different things.

"I believe that both consumers and lenders are currently in a period of adjustment to a new normal.”

Broadhead said “the new normal” would be a market characterised by broadly flat or slow price increases.

Transaction volumes will also be lower than over the past ten years, saving to buy will become commonplace and a proportion of the population will prefer to rent.

Broadhead said it was wrong to assume that everyone who is renting is doing it because they have to.

And he added: "Having a mixture of quality housing with a mix of tenures is a healthy position for the UK and it leads to vibrant and inclusive communities.

“Building societies and other mutual lenders are doing their bit with some increasing lending generally in 2012, a rise in the number of higher loan to value ratio mortgages for first-time buyers plus participation in buy-to-let and alternatives such as shared ownership and self-build.

“It will be interesting to see whether the Government's NewBuy Guarantee will stimulate house building, I hope it does, we need more homes."

First time property buyers should commit to saving

Despite the imminent rate rises recently announced by certain major lenders, buying will remain cheaper than renting for the vast majority of the UK population.

Despite the imminent rate rises recently announced by certain major lenders, buying will remain cheaper than renting for the vast majority of the UK population however, it can be really tough to save enough money to buy your first property. Paul Goverd, Managing Director of C J Hole in Southville offers some useful advice on how first time buyers can benefit from the following new schemes which are designed to encourage regular saving for those who want to get on to the housing ladder.

After the problems of the last decade caused by fluctuating house prices, ‘over lending’, self-certified mortgages and interest only loans, the major lenders have become much more cautious about who they lend to and how much they are prepared to offer. Lending to the credit-impaired has reduced dramatically; the minimum deposit required to secure a mortgage is now typically in the region of 15% to 20%, with many first time buyers obliged to find in excess of £20,000.

This means that potential buyers need to take every advantage to raise the necessary funds. Paul Goverd suggests that building a good relationship with your bank may help when it comes to a loan application but that does not necessarily mean that they will lend you what you want. Some lenders are now offering Save To Buy Accounts that allow would-be buyers to devote their tax-free savings allowances towards house buying. This could be worth an additional £1,000 to £2,000 per year.

For some institutions, these new schemes are also linked to preferential arrangements that can mean a lower than normal deposit is required (as little as 5%). The only condition on the saver is that they do need to contribute regularly to the scheme.

Other lenders may offer to provide a cash boost to a buyer’s account when they move into a new home. First time buyers receive a £600 payment into their savings account if they build their savings balance by £150 for ten out of the twelve months before they apply for a first time buyer mortgage with the bank. To qualify, savers can use any of the bank’s savings accounts.

For those who already have access to a suitable deposit, there are some exceptional mortgage deals available. The Council of Mortgage Lenders (CML) said its year-on-year figures improved for the sixth month in a row after its members lent £10.5 billion in January and believes the 24thMarch deadline for the end of the stamp-duty free period for first-time buyers on properties under £250,000 has boosted activity.

Several lenders are offering rates as little as 3.19% on a five year fixed period, with competitive arrangement fees for up to 75% loan to value. These are unlikely to remain for too long, as continued uncertainties in the Eurozone threaten to tighten access to international funds and push up rates in the second half of the year.

What is clear is that for many first time buyers, their savings behaviour needs to change. There is a factor called ‘Generation Rent’, which shows that people who do not yet own their own homes are generally less likely to save (for any objective) than those that do, but is has to start with a clear and firm financial commitment from the buyer.

C J Hole know that buying your firsthome can be confusing and stressful. That's why our mortgage advisers offer free advice on the process, what itmight cost, what youshould do to be inthe bestposition to buy, how long it might take, and some essential tips in choosing the right partners (such as lenders and solicitors).

Half of borrowers don’t review their mortgage

Some 49% of borrowers have admitted to not reviewing their mortgage over the past three years, research from Unbiased has revealed.

Around 56% of mortgage holders did not know the rate they paid on their deals.

Of those that did know their rate, fixed rate mortgage holders paid an average rate of 4.63% however around two in five were paying a rate of 5% or higher on their fixed rate deals.

This is a difference of £169 per month compared to one of the best buy rates available at the moment.

Unbiased does however warn that making the decision to switch to a different type of mortgage or change lenders could include fees and penalties. It therefore calls on consumers to seek advice from specialist advisers.

Karen Barrett, chief executive of Unbiased, said: “If the recent decision by Halifax and RBS to increase their Standard Variable Rate is an indication of the direction of the market, then we will see more increases to the rates that consumers are paying on their mortgages, making it more important than ever for people to shop around for a better deal.

“The important thing to remember is that while lending criteria have tightened, not all is lost if you are not the perfect borrower. High loan to value deals may be harder to find but we have seen numerous lenders re-enter the market at the 90% LTV mark.

“Other factors to consider before you embark on switching your mortgage are redemption charges, mortgage arrangement fees and any other costs associated with mortgages.”

Barrett added that 14% of mortgage borrowers said they would not be reviewing their mortgage because base rate was so low.

She said: “That could mean they are missing the opportunity to make substantial savings on their mortgage payments.

“The good news is you don’t have to do the work yourself, a whole of market mortgage adviser will look at the best deals available taking your financial situation into account and help you make the right decision.”

Paul Goverd, Managing Director at estate agents C J Hole in Southville added: “We echo both the findings and advice emanating from this report. Our mortgage advisers shall be pleased to advise customers on their individual circumstances and the best course of action for them.”

Winning The Property Game

Are you a winner or loser in the property stakes?

Price governs property sales. It is not the location. It is not the size. It is not the condition. It is the price. Location, size and condition influence price. But price still governs everything. So here is a fun game to play with your own home.

Estimate three prices. The first figure, a very high amount beyond even your most rose-tinted view, is the figure that your home would never fetch in a month of Sundays. The second figure, a very low sum, is the sort of price at which a frenzied hoard of ruthless cash buyers would bite your arm off on the first day of marketing - and each then be prepared to gazump wildly if they were unsuccessful. This is a price that would be met in a firestorm and with everything that could go wrong, going wrong. The third figure is between the other two. This is the amount your property might fetch if pursued by a couple of ready, willing and able buyers after several weeks of marketing on the internet and in the press. These buyers wouldn't have been alone in viewing but the others will have decided against proceeding further for whatever reason.

You can play this game with any property and all three figures determine the speed at which the property will - or will not - sell. Clearly human nature demands a preference for a seller to try and achieve the first figure and a strong reluctance to descend to the second. But the clever player will steer the third, middle course. In a property sale, one can determine the price one gets and one can determine the time it takes to sell. But it is tricky to determine both together - especially in this market. To achieve a perfectly timed and priced sale, the seller has to move the price more towards the realistic than the optimistic and, in some cases sadly, even nudge the pessimistic. Or they must be lucky. The question every seller had to ask is 'Am I lucky?' Or, 'Do I have time to be lucky?'

The good news right now is that realistically priced properties are selling, stimulating motivated buyers into action. The even better news is that moving home is a game usually played over two legs. There is the home leg, selling, and the away leg, buying. Usually, what one loses on the swings, one gains on the roundabouts. So in the end, all things pretty much level themselves out.

Remember that first figure, the highly optimistic one? That territory is reserved for a bull market with buyers scrambling to purchase what little there is available where lenders are throwing money at borrowers, where there is much less unemployment than we have now and far more confidence, where there are no austerity cuts, where the property market is on a charge upwards and panic buying is rife. Can there be any reasonable person in the country who feels we have these conditions right now?

Price realistically to win the property game.

Men value themselves more than women

Men typically take 50% more life cover than women, figures from Scottish Provident reveal.

The protectionprovider said that women were failing to safeguard their families’ financial futures by placing a much lower monetary value on their lives compared to men.

Men take out around 23% more life coverthan women in their 30s with the gap getting progressively wider up to those in their 60s when men take out 94% more life coverthan women.

Jennifer Gilchrist, senior product development manager, at Scottish Provident, said: “It's a worrying situation especially so when you consider factors like the increase in single parent families and increasing numbers of women working mean more families are now dependent on a woman's salary as the main earner in the household.

“At the moment we have a situation where females are taking out far less cover than males even though, with women living longer than men, it means that currently life cover for females is much cheaper. But that's about to change.

“With the new EU gender directive coming into force in December, the cost of protection for women is set to rise substantially, with some projecting a rise of around 20%. So we urge women to make 2012 the year in which they act to protect their families' financial security."

Paul Goverd, Managing Director at C J Hole in Southville said: “It clearly makes sense for both men and women to take adequate life cover and that cover should be sufficient to not only pay off any debt such as a mortgage but also, in a partnership or marriage situation, to provide sufficient to enable a remaining party to continue to run the home.

At C J Hole, our experienced mortgage and protection advisers will be pleased to advise you as to the most appropriate cover for your circumstances and provide a full breakdown of costs.”

One in four comfortable with renting

Research from leading property portal FindAProperty shows that some 26% of renters say the prospect of renting over the long term isn’t a problem for them and 28% don’t feel that owning a property in the future is critical.

Only 54% of people said that purchasing their own home was very important to them.

One in 10 people said they preferred to rent because of the flexibility it offered.

One in five renters said they decided against buying a home because they could not afford to live in their desired area.

Similarly 6% have been put off buying because the type of house they could afford would be too small for their needs.

More than half of those currently renting predicted that if they did not buy a home, they wouldn’t be able to until they were over 40 years-old.

Samantha Baden, property analyst at FindaProperty, said: “A rented home doesn’t carry the same stigma as it used to. For many people, the decision to rent is based on the flexibility and convenience renting offers, and not necessarily because they can’t afford to buy.

“There’s no denying that home-ownership is still a top priority for many people and for those looking to buy, now could be a good time as mortgage rates and asking prices have both come down in recent years.

“However there are still millions of people who don’t consider getting a foot on the property ladder as their ultimate aim. In these cases, renting a home can be the best choice for some people and allow them to live the lifestyle they want at a particular time of their lives.”

Paul Goverd, managing Director of C J Hole in Southville added: “This research demonstrates that the private rental sector is an important part of the overall UK housing mix and that demand exists for both renting and buying.”

Void periods hit two year low

Landlords’ void periods are at a two year low, research by Paragon Mortgages reveals.

Landlords have reported a steady decrease in void periods from Q1 2009 to Q4 2011.

Last year saw the lowest void period figures for the past two years, with the average time a property remained empty being 2.8 weeks. This compares to an average of 3.2 weeks in 2010 and 3.3 weeks in 2009.

Professional landlords experienced slightly higher void periods, on average 2.9 weeks in 2011, but they also achieved a decrease from 2009 when the average was 3.4 weeks.

A void period is the length of time that a rental property is empty, usually in between tenancies.

John Heron, managing director of Paragon Mortgages, said: “The decrease in the average void period can be attributed to the surge in demand we have seen for private rented property in the past 12 to 18 months.

“Tenant demand has increased at a rate never experienced before so it is positive that rental properties are being let quickly and there is less of a gap between tenancy agreements. This is positive news for the tenant and also the landlord too ensuring their portfolio remains profitable.”

Paul Goverd, Managing Director at C J Hole in Southville said: “Avoiding costly void periods is crucial for landlords.

At C J Hole our vigilant lettings processes are designed to ensure that void periods are minimised or removed and that returns for landlords are maximised.”

Taxpayer cash boost for Local Housing Allowance tenants

An extra £49m of Government funding has been allocated to councils to help housing benefit claimants who are renting in the private sector.

Nearly £6m of it is to go to councils in London.

The funds are to help with the transition to new housing benefit rules until 2015, and are intended help Local Housing Allowance tenants and councils renegotiate their rents with landlords and find more affordable properties.

Lord Freud, minister for welfare reform, said: “The cost of paying housing benefit in the private rented sector has nearly doubled in a decade, so it’s only right that we introduce new reforms to get these spiralling costs under control.”

Paul Goverd, Managing Director at C J Hole in Southville said: “The Government’s proposals for Local Housing Allowance are controversial and many landlords will not accept tenants who obtain funding under this scheme.

It can only be hoped the provision of additional funding by way of transitional support goes some way towards ensuring that tenants are, in many cases, able to negotiate new agreements with landlords.”

Fifth of buy to let applications from accidental landlords

A fifth of Platform’s recent buy-to-let business has come from accidental landlords where homeowners rent out their existing property instead of selling it when they are moving home.

The lender said that between early December and the end of January 2012, let-to-buy accounted for 20% of its overall Buy-to-letapplications.

Let-to-buy mortgages allow the borrower to retain ownership of their current property and let it out to tenants, then take out a new mortgage to buy the property they want to move to.

Recent figures by Rightmove show that properties are now on the market for an average of 105 days before they are sold.

In April 2011 the average time on the market was just under 80 days showing that sellers were increasingly having to wait to sell their homes and move elsewhere.

Lee Gladwell, business development director at Platform, said: “Uncertainty around the economy, employment and house prices is continuing to dampen demand for house purchases and this is driving demand from those choosing to rent rather than buy.

“Our experience shows that some of those that want to move and are unable to sell are choosing to become landlords and rent out their existing property, at least until the market improves.

“We launched our let-to-buy range following feedback from mortgage brokers who were telling us of demand from borrowers for these types of products.”

Paul Goverd, Manging Director at C J Hole in Southville said: “I disagree that demand for house purchase in Avon and the South is overly dampened down although transactional numbers remain well below the peak of 2006-2007.

It is however true to say that there has been growth in the rental market and that there has been an increase in “accidental landlords” requiring funding on the basis of letting out property.

Our mortgage advisers are helping both home buyers and landlords secure mortgages in the current market which, at the beginning of 2012, is much more lively than many predicted it was likely to be.”

Attracting A Sale

A few small changes to the layout, colour schemes and lighting in a home can make your property a magnet for buyers.

Find out the maximum potential value of your property. It's pointless spending £20,000 on improving a property if it will only add £10,000 to the sale price. Look at local property papers and visit estate agents to find out the asking price for similar properties on the same street.

The best time for selling is spring to autumn; the market slows down over Christmas and New Year. If a property is sold when it's fresh to the market, it's much more likely to achieve a better price.

Finish off small DIY jobs - touch up chipped woodwork and replace washers on dripping taps.
Before a buyer steps into a house, they will have already formed an impression. A well-kept garden, pathway and fence are immediately appealing.
Water can cause major problems in unwanted places. Check your roof and guttering, replace broken tiles and repair the lead flashing. It's worth casting an eye over the drains too. A drain cleared before a blockage occurs is easier on the nose and the wallet!
A regular lick of paint will keep a property looking good and keep deterioration at bay. A newly-painted front door with shiny brass fittings always creates a good impression. When selling, a surveyor will be able to spot if attempts at 'sprucing up' your property are simply quick fixes - he'll be much more impressed by ongoing maintenance.
Cutting the lawn can be a last-minute pick-me-up. Feeding it a couple of weeks beforehand will brighten it up and make it look healthy.
If your fitted kitchen units look tired, simply replace or paint and varnish the doors. This will be much cheaper than buying a totally new kitchen. If the units are in fairly good condition and only look dated, just replace the doorknobs, handles and taps. Another economical trick is to fit good solid worktops on to existing units.
Paint walls - a pale, plain shade maximises the feeling of lightand space and enables buyers to imagine their possessions in the property. Research shows that most buyers prefer natural, earthy colours to bright, bold shades. Although there's a wide range of paint colours available, magnolia is still the top-selling colour.
To prevent rooms looking too bland, use strong colours for accent walls or cushions and accessories.
De-personalise your rooms by removing personal items, such as family photographs and children's drawings, which may distract potential buyers. Buyers should be looking at the property not the owner's possessions, so hide these items until the property is sold. Removing clutter also makes it easier for buyers to imagine their own belongings in a room
Plant pots can provide colour in your garden. If you don't have the time to fill your own, you can always get some ready-made.
Flowers and a bowl of fruit will brighten up a room and provide a pleasant smell.
Organise rooms - a property will be more appealing if rooms have a specific purpose and this allows buyers to see the full potential of the property.
Revitalise a bathroom with a green leafy plant and new taps, shower curtain and light pull. All these items can be picked up cheaply from DIY warehouses.
Coloured bathroom suites are out and old-fashioned white is back in vogue. If you've got an avocado or pink bathroom, consider investing in a white suite. It will add value to your property.
Restoring fireplaces and period features, such as ceiling roses and cornices, can add thousands of pounds to a property. If you don't have a fireplace then a striking picture can work equally well. If you decide to install a fireplace, look for an original period grate and surround in reclamation yards.
Avoid strong food odours - don't cook food such as fish or curry before a viewing as the smell will linger. The smell of freshly-baked bread or fresh coffee though is said to provide a welcoming feel to a home.
Ask friends or family to look after any pets during viewings.
Try and make viewers feel comfortable. Offer them a coffee and ask them if they need any further information about bills or local amenities.

Developers should focus on sector over location

Property developers should place greater emphasis on the sector they are building in as well as the location, says United Trust Bank.

The development finance and bridging lender said that it used to be the case that location, location, location provided a widespread belief that developers could build almost anything if the plot was in a good location in a good town.

The bank however argues that developers need to be far more focused on the potential purchasers and the property type.

Noel Meredith, director at United Trust Bank, said: “The developers that are bringing the most attractive proposals to us at the moment are demonstrating a very high level of local knowledge and matching the right product with the right location.

“In a buoyant housing market there are buyers for almost every type of property but in today’s market, the most crucial thing is to establish not who wants a property but who can afford it.

“There may well be a shortage of new flats in a particular location but if incomes in that area do not allow the first-time buyers being targeted to fund a deposit then restrictive mortgage funding will hamper the sales.

“The crucial skill is to establish at the outset of the project which type of purchasers are actually active in the market and adjust projects accordingly.”

Paul Goverd, Managing Director of C J Hole in Southville said: ”In our experience as a major seller of new homes, developers undertake considerable research before choosing to develop a particular site and this research will look in detail at the demographics, demand, pricing etc as well as construction costs, social housing and section 106 requirements.

At C J Hole our experienced teams work with developers before, during and after land acquisition and assembly to ensure that the value form any given scheme is maximised.”

Buy to let mortgages increased by 84,000 in 2011, according to recent data released by the Council of Mortgage Lenders (CML).

The last quarter of 2011 saw almost 35,000 buy to let mortgages advanced totalling £4 billion, over 15,000 of which were re-mortgage advances.

The figures are almost identical to volumes for the third quarter of 2011, 34,300 advances with a total value of £4 billion, but considerably higher than the last quarter of 2010, 26,300 advances valued at £2.9 billion.

Buy to let figures are still operating at muted levels when compared to the third quarter of 2007, where 93,000 advances were made at a value of £12.7 billion, but clearly buy to let mortgages are continuing to recover from the lows experienced in 2009.

Buy to let mortgages represented around 11 per cent of the total gross mortgage lending during the last quarter of 2011.

Paul Smee, CML Director General, commented:

"Buy-to-let lending continues to perform well. Demand for rented property remains high, so the rationale for buy-to-let remains strong, and there is little reason to foresee any change to this positive outlook for the sector.

These figures do not suggest that buy-to-let is crowding out first-time buyers; more that it is performing a really important role within the overall housing market. The benefits of the availability of good quality, private rented housing should not be overlooked, especially as there are many households which need the flexibility and mobility that the private rented sector is well placed to provide."

Robin King, director, Move with Us, also commented on the figures:

“The buy-to-let market is steadily growing relative to other parts of the market, such as first-time buyers, but we believe it still has a long way to go before it booms. We estimate that it needs to grow by around 50% over the next five years otherwise rents will escalate further.”

“The tightening of mortgage lending since the financial crisis has enabled professional landlords to step in and grab market share by taking advantage of lower property prices, reduced interest rates and the increase in tenants to rapidly expand their property portfolios. In the current climate, investors should be looking for a rental yield of around 5%. To achieve this they need to work harder to attract the right tenants and to be able to demand high rents.

“Tenants are demanding higher quality homes with good amenities and transport links for very competitive prices and have the luxury of more properties to choose from. Professional landlords should be looking to invest in areas where we are likely to see high economic growth this year as increasing property prices tend to follow. Areas with good rail routes are becoming popular.”

Paul Goverd, Managing Director at C J Hole in Southville added: “The buy-to-let market remains buoyant and we should be pleased to advise existing and potential landlords on the best options open to them in terms of both rental income and capital growth.”

Repossessions lowest since 2007, says CML

A total of 36,200 homes were repossessed in 2011 - the lowest annual total since 2007, mortgage lenders have said.

The annual total proved to be lower than the Council of Mortgage Lenders' (CML) original forecast of 40,000.

Low levels of interest and forbearance by lenders have kept a lid on the numbers.

Repossession levels (source CML)

1981: 4,870 homes repossessed
1991: 75,500
2001: 18,200
2011: 36,200

However, the lenders' group said that higher unemployment would push up home repossessions in 2012.

The annual total for 2011 was down slightly on 2010, when 37,100 homes were repossessed.

The latest figures show that 8,500 homes were repossessed in the final three months of 2011. This was down 9% on the previous quarter, but up 5% from the final three months of 2010.

The number of people falling into arrears on mortgage payments improved slightly on a year earlier, the CML said.

We are concerned that there will be a higher number of people facing more serious problems in 2012”

At the end of 2011, 159,400 mortgages had arrears equivalent to 2.5% or more of the mortgage balance. This was 7.5% down on the number at the end of 2010.

"Remember that arrears management still sees arrears slowly build up. At some point those debts have to be paid down," said David Birne, an insolvency practitioner at HW Fisher and Company.

Meanwhile, Housing Minister Grant Shapps said the government would pay for extra support for homeowners facing difficulties.

Councils will be given £19m to offer to struggling homeowners in interest-free loans of less than £5,000, or grants, to help ease debt pressures.

Another £1m will extend a service available in the county courts, giving free on-the-day legal advice to those facing home repossession hearings.

"Repossession should only ever be the last resort. No one in financial difficulty should be embarrassed to seek help if they need it," Mr Shapps said.

Even with sales forecast to hit a record low in 2012 - the CML said the chances of people losing their homes would increase in 2012.

"Low interest rates and good arrears management by lenders are helping the vast majority of those borrowers who face difficulties to keep their homes and get back on track," said CML director general Paul Smee.

"This will continue, but in the face of wider economic difficulties and rising unemployment, we are concerned that there will be a higher number of people facing more serious problems in 2012.

"Anyone worried about their finances should talk to their mortgage lender and take advice on their other debts as soon as possible. This will give them the best possible chance of staying in their home even if they have a spell of financial difficulty."

The CML has forecast that repossessions will reach 45,000 in 2012. This remains much lower than the peak of 75,500 in 1991.

Arrears on buy-to-let mortgages were lower than owner-occupied properties, but the repossession rate in the sector was higher.

In 2011, 0.42% of all mortgaged buy-to-let properties were repossessed - 5,900 in total.

By comparison, the 36,200 owner-occupied homes that were repossessed amounted to 0.32% of mortgaged owner-occupied properties.

The CML said lenders had made strenuous efforts to show sympathy to homeowners in arrears to try to help them keep their homes. However, it was less of an imperative in the buy-to-let sector where there is a greater turnover of properties and mortgages.

Tenants rights were unaffected if landlords defaulted, it said.

Paul Govered, Managing Director of C J Hole in Southville said: “Lower numbers of repossessions is clearly positive news although for the people directly involved it still represents terrible news.

The economy remains fragile and the CML are predicting numbers to increase in 2012 although the Government has recently announced the provision of £20 million of funding via local housing authorities to prevent repossessions.

Our advice to anyone struggling to meet their commitments is to seek advice and help. At C J Hole our valuers and mortgage advisers will be pleased to offer help and assistance.”

Bank of England may cut loan to value levels

Banks and mutual lenders could be barred from offering high loan to value mortgages available to borrowers to prevent another credit crisis, George Osborne said on Monday night (6th February).

The Chancellor of the Exchequer said the Financial Services Bill would give the Bank of England’s Financial Policy Committee powers to “alter the maximum loan to value ratios in mortgage lending to curb a sharp, unsustainable rise in house prices.”

The new FPC, chaired by the governor of the Bank of England, would also be able to force banks to hold more capital to stop credit bubbles growing out of control, as part of reforms the chancellor said would “affect the bread and butter of people’s daily lives”.

He told MPs in the Commons: “This FPC should act symmetrically...Its job is not just to try to moderate a credit boom but to try to alleviate a credit bust.

“The precise tools we give to the FPC are yet to be determined. I freely accept that we are largely in un-chartered territory in policy making here or indeed anywhere in the world.

“But surely the experiment of making no attempt to moderate the credit cycle, let the bubbles grow and burst and then clean up afterwards, has been an unmitigated disaster and I think we would be failing if we didn’t look for an alternative approach.”

Paul Goverd, Managing Director at C J Hole in Southville said: “Lenders have already tightened their criteria in terms of multiples of income and loan to value ratios. The Chancellor’s comments simply reinforce what is already in place and signal that the Government is not willing to allow any significant change that may fuel house prices or raise credit issues again.”

Your Dream Home

A BIG THANKYOU to the pupils of St JohnsPrimary School in Clifton. We had 350 entries for our Spring 2012 competition asking the children to draw us a picture of their perfect property. We had rocket launch-pads, ballrooms, bowling alleys, swimming pools and puppy parlours! The youngsters of Clifton, Redland, Stoke Bishop, Cotham and beyond certainly have some ambitious plans. Congratulations to the winners Jeffrey Guo- Aged 4, Max Rose- aged 10, and Si-eunPark – aged 7. All the children won gift vouchers to spend at the Mall at Cribbs Causeway and the winning picture is the new design on our leaflet which you will have popped through your door in the coming weeks. What have we learned? The sky is the limit as far as children are concerned. They have fantastic imaginations and ‘ home ‘ is very important to them. Here at CJ Hole Clifton, ‘ home ‘ is at the heart of everything we do. With years of professional expertise and experience to draw on…. We can make those dreams come true.

left to right Justin Hoye... Headteacher St Johns Primary School,Clifton ; Max Rose; Jeffery Guo; Sieun Park; CJ Hole Director, Howard Davis.

Ditching the Dining Room

A recent survey by Lloyds TSB Home Insurance has revealed that homeowners are shunning away from the traditional house layouts in favour of ‘open plan living’. The survey of 2,000 people revealed that over a fifth of homeowners have taken a sledgehammer to their walls during the past decade, while an equal proportion have similar plans afoot.

Thirty two percent of those seeking to create more social spaces have sacrificed a separate dining room while 18% have converted a garage and 12% have ditched a single purpose kitchen.

Whilst certain rooms are becoming increasingly obsolete, some new ones are becoming more common. One in 50 homes now has a gym, whilst one in four has a utility room, compared to just one in 10 of the houses today’s homeowners grew up in.

With increasingly hectic lifestyles convenience and sociability has become key, which is why in the next 10 years we are likely to see the majority of houses designed in this style.

Some Things Just Will Not Wait!

Buying your first home is usually a decision that people make for more important reasons than money alone, but with just over 1 month left until the Government’s Stamp Duty Exemption for First-Time Buyers expires, there is a significant saving to be made by those who get moving now.

For help and advice about any aspect of your first move, contact us on

01242 255101

www.cjhole.co.uk/branch/cheltenham

Property shortage hindering first time buyers although signs of more returning to the market in 2012

First-time buyers are seeing their dreams of homeownership hindered by a lack of suitable property for sale as well as raising a big enough deposit, Rightmove claims.

The proportion of buyers who intend to purchase their first home over the next year has edged up to 24.3%, up 1.4% on last quarter and 1.5% year-on-year.

But Rightmove, which advertises around 90% of homes currently for sale in the UK market, also said the number of new properties advertised for sale in the final quarter of 2011 was significantly down on the third quarter, with flats and terraces in short supply.

Around three in 10 first-time buyers said finding a suitable property to buy was their single biggest concern.

Meanwhile raising a deposit is still the single biggest concern for four in 10 and was the most common problem reported.

Miles Shipside, director at Rightmove, said: “First-time buyer levels remain well below historic norm of 40%, but a slight increase of 1.4% on last quarter of those intending to buy for the first time offers some encouragement for the year ahead.

“The main issues of affordability and mortgage availability that have blighted first-time buyers over the last few years remain.

“Our research also provides evidence of an emerging new home-ownership challenge in the form of a lack of available properties that would typically be brought to market by first-time sellers.”

In the final quarter of 2011, the numbers of terraces and flats coming to market were down 31% and 28% respectively when compared with the previous quarter.

Shipside added: “For first-time buyers who are itching to get on the ladder a lack fresh of choice in apartments and terrace properties must be extremely frustrating.”

He suggests that owners of these property types, typically first-time sellers, are being deterred from bringing their property to market because a continued policy of forbearance by lenders and low interest rates means that the market is short of forced sellers.

And he said: “Those wishing to trade up are suffering from a lack of equity, lack of confidence to stretch themselves financially and, in certain micro-markets, difficulty in identifying a suitable property that they would like to move to.”

Rightmove’s research also showed around one in 12 (8%) is concerned about their ability to meet the monthly repayments of a mortgage.

Only around one in 14 (7%) identified concerns around fluctuating house prices.

Rightmove said that movements in house prices are not seen as a significant barrier is interesting given that 59% of the sample indicated that they believed average asking prices in their area are currently above what they consider to be fair and reasonable.

Shipside said: “With interest rates keeping monthly mortgage repayments comparatively low and fierce demand in the rental sector keeping the monthly rents high, you can understand the frustration of many ‘trapped renters’ who would like to buy but simply don’t have the means to get over the deposit hurdles put up by lenders.”

Paul Goverd, Managing Director at C J Hole in Southville said: ”The difficulties facing first time buyers have been well documented over the last couple of years and still largely exist today. It is however a fact that property affordability has improved in that time and many first time buyers have now been able to save a deposit and put themselves in a position to buy.

It may be some time before we see the number of first time buyers return to historic norms but I do expect the position to move forward in 2012 and beyond.”

Re-think on whether landlords should have to settle tenants' unpaid water bills

The Government has announced a review which could see it pull back from proposed powers that would make residential landlords liable for their tenants’ unpaid water bills.

Under the Flood and Water Management Act, the Government can make property owners liable for payment of water and sewerage bills if they fail to provide details of their tenants within a specified time.

However, the Government is now considering whether a voluntary approach would work better.

The concern is that unpaid water and sewerage bills add about £15 to the bills of those who do pay. Analysis shows that around 80% of those who do not pay their water bills are private tenants – either because the identity of the tenants is not known and the water company doesn’t know who to bill, or because they simply don’t pay up.

Once the tenant has moved out of the property, it becomes harder to chase the debt.

Before 1999, the approach to bad debt was straightforward: the water companies simply turned off the supply. Now, however, they are not allowed to do this, and while they have a statutory duty to supply water, they have no statutory power to withdraw supply, or to insist that occupiers or property owners give the identity of those who should be billed, or even to require a contract between the supplier and the customer.

Ian Fletcher, director of policy at the British Property Federation, said he welcomed the review:

“Government policy in other areas is pushing for personal responsibility, and the same should apply here.“Landlords should not be held liable for their tenants’ debt as this is simply unfair.

“We agree that water companies could do more to limit bad debts. Many landlords do already voluntarily provide information, but this could be made far easier and therefore encourage far more data sharing with the right systems in place.

”The consultation closes on April 16 and can be found at:

http://www.defra.gov.uk/consult/files/bad-debt-consult-condoc-120123.pdf

Market positive on Buy to Let lending for 2012

More than half of intermediaries expect to do more buy-to-let mortgage business in 2012 than they did last year, Paragon Mortgages claims.

Of those who said they expect Buy to letbusiness to rise 19% said that they expect levels to bounce 10% or more.

Only 3% of respondents said they are looking to complete less buy-to-let business in the next 12 months.

This is despite 62% of brokers surveyed by Paragon believing unemployment will rise in 2012 and 42% saying they expect GDP to fall.

John Heron, managing director of Paragon Mortgages, said: “2012 is set to be another challenging year for the buy-to-let and general mortgage market as we continue to feel the impact of the Eurozone crisis and wider economic factors.

“However it’s positive to see the level of optimism among intermediaries and the fact that more than half expect to increase their level of buy-to-let business throughout the course of the year.”

Paul Goverd, Managing Director at C J Hole in Southville said: “Buy to let lending looks set to continue at good levels in 2012 as the private rental sector remains strong and landlords look to add to their portfolios.

At C J Hole we have access to some excellent schemes and will be pleased to advise on the best options available.”

Landlords to have bumper year

Landlords and lettings agents will capitalise on favourable market conditions and have a good 2012, said Landlord Assist.

The tenant referencing firm said the continuation of low interest rates and the gradual easing of lending restrictions by financial institutions have seen many Buy-to-letinvestors return to the marketplace to expand their portfolios.

Landlord Assist landlords said they were buying at a significant discount to the 2007 peak.

Graham Kinnear, managing director at Landlord Assist, said: “There are few tangible investments at present which can offer growth, income and a positive hedge against inflation quite like the buy-to-let market.

“Investors have taken advantage of weak prices and strong rental returns over the past year and with the base rate unlikely to increase anytime soon the good news for landlords is that they can enjoy the favourable conditions for some time yet.”

Demand for private rented properties is set to remain strong for the foreseeable future as more and more people are now choosing to rent than ever before.

This has been caused by a lack of mortgage availability for homebuyers in the residential mortgage sector and the difficulty for would-be buyers to raise large deposits imposed by lenders.

Subsequently many tenants are renting for longer periods than they initially envisaged, thereby providing landlords with greater security.

Stephen Parry, commercialdirector at Landlord Assist, said this expansion of the rented sector had helped to make finance much more accessible to landlords.

He said: “Strong demand for rented properties has helped to renew the interests of banks and building societies in this sector. This has led to an increase in the number of buy-to-let products aimed at investors and more importantly, better competitive rates.”

Kinnear added: “For landlords looking to expand their portfolios now is the perfect time to capitalise on high demand, low supply stock and low interest rates. With the rented sector predicted to represent 25% of housing stock over the next few years it could be an ideal long term investment.”

Paul Goverd, Managing Director at C J Hole in Southville said: Conditions remain favourable for landlords with low interest rate costs and high demand for rental property.

At C J Hole we expect 2012 to be another strong year for the private rental sector.”

How To Be Top

As we enter a New Year, Jeremy Prosser of C J Hole takes a look at what may lie ahead for the property market.

Although mature estate agents will say they have seen it all before, this time it is different. No one has seen this market under this set of national and international financial conditions before. But what is rather refreshing is that the uncertainty now cuts down the speculation aspect of a house purchase and strips the requirement to buy down to the real and age-old essentials. This makes for easier choices.

Le Corbusier, the pioneering architect, stated that, “The requirements for a house should be to provide a shelter against heat, cold, rain, thieves and the inquisitive”. He didn’t add that a house should also provide its owner with an investment return of seven per cent year-on-year...

For the first time since the 1960s property investment can take more of a back seat in the house buying mindset and, instead, fundamental life requirements can come back to the fore. Of course with other financial instruments providing so little in the way of return, property is a natural arena in which to invest. But with little or no indication about if or when the market will return in any strength, we are left with simpler decisions and choices - does a property suit our requirements in size, location, style and price?

It is although our needs have been simplified in the way they may have been fifty years ago. With less frenzy and greater choice, for a while at least, this may be a very good time to choose a primary or secondary home for all the very best lifestyle reasons.

We quickly learn to expect that there is an investment opportunity to be gained from property purchase in a rising market. But we are rather slow to appreciate the reverse is likely in a poor market and/or in particularly adverse economic circumstances as we have now.

This year we may have new American, Russian and French presidents, more ructions in Europe and the Middle East, and greater privations at home before we see improvement. But still there is a reassuring level of market activity that has more to do with need than discretion. This is the market we have and this is the market we have to deal with – and deal with it we will.

Real buyers and sellers should not be deterred. Indeed they should be encouraged as the more life there is in the property market the more life there is in the economy. But those still insisting on the sort of financial profit they may have achieved several years ago should perhaps think again and get real. It will be the enlightened who get to the top of the property class in 2012, not those in denial.

FTB affordability at 8 year high

Affordability for first-time buyers was at its most favourable level at the end of 2011 since 2003, according to the latest annual Halifax First-Time Buyer Review.

The average house price paid by a first-time buyer in November 2011 was affordable for someone on average earnings - based on the ratio of the average house price to earnings being below the long-term average of 4.0 - in 44% of all local authority districts (LADS) in the UK.

This is the highest proportion for eight years and compares with 42% in 2010 and just 5% at the peak of the housing market in 2007.

But despite the overall improvement in affordability, there remained a strong north - south split. Around 95% of all the UK LADs that were affordable for first-time buyers were in the North compared with just 5% in the South.

All LADs in the North East were affordable for first-time buyers whereas in London there were no affordable areas for first-time buyers.

Notwithstanding better affordability, Halifax estimates that there were around 187,000 first-time buyers in 2011 - the lowest annual total since records began in 1974, 7% lower than in 2010 and less than half the recent peak of 402,800 in 2006.

Much of the fall in the number of first-time buyers in recent years can be explained by the need to put down a bigger deposit. The average first-time buyer deposit in the first eleven months of 2011 was £27,032. Whilst this was 15% (£4,873) lower than in 2010 (£31,905), it compares with £17,482 in 2007.

As a proportion of the purchase price, the average deposit increased from 10% in 2007 to 20% in 2011.

Seven of the ten most affordable LADs for first-time buyers were in Scotland. South Ayrshire was the most affordable LAD in the UK with an average property price that was just over two and a half times (2.65) gross average annual earnings. The next most affordable areas were Northumberland (2.86) and Renfrewshire (2.88). Peterborough in the East of England was the most affordable LAD in southern England (3.98).

Nine of the 10 least affordable LADs were in the capital. The least affordable LAD surveyed for a first-time buyer in the UK was Brent in London where the average first-time buyer property price was over nine times (9.11) gross average earnings in the area. Oxford (7.75) was the second least affordable LAD. Herefordshire (5.03) was the least affordable LAD outside the south of England.

Martin Ellis, housing economist at Halifax, commented: "Housing affordability for those looking to get onto the property ladder for the first time has improved significantly over recent years, largely as a consequence of the decline in house prices since 2007.

“Nevertheless, conditions for potential first-time buyers remain tough. Difficulties raising the necessary deposit and concerns over the economic climate are preventing many from entering the market."

Paul Goverd, Managing Director at C J Hole in Southville said: “It remains difficult but not impossible for first time buyers to get on the property ladder and we are still helping individuals and couples to do so.

I strongly recommend seeking professional advice and our mortgage advisers will be pleased to assist.”

landlord mortgage arrears set to rise as tenants struggle with rent

Arrears are set to rise in the buy-to-let market, as more landlords face having to deal with tenants who cannot keep up their rent payments.

According to research by Templeton LPA, a specialist practice of LPA Receivers, the number of court orders to evict tenants is up by 11%.In the last quarter, 24,966 tenants faced eviction notices – an increase of 11% on 22,558 a year ago.

The number of tenants in severe financial difficulty has also shot up in the last three months, says the firm.

During the last quarter of 2011, there were nearly 11,400 more tenants over two months in arrears than in the same period of 2010 – a rise of 18%.

At the end Q4 2011, nationally there were 78,970 tenants in England and Wales in severe arrears.Paul Jardine, director and receiver at Templeton LPA, said: “A growing minority of renters are falling deeper and deeper into payment difficulties, and the number of severe arrears cases is rising.

“While the wider tenant mix has changed since the mortgage market downturn – with a greater number of financially sound yet frustrated first-time buyers – a growing number of tenants are seeing their job prospects affected by the UK’s economic malaise.

” He said buy-to-let mortgage arrears have not yet felt the impact of growing severe tenant arrears and evictions, but this would change this year.

In the last quarter of 2011, the number of buy-to-let mortgages more than three months in arrears fell by 7% compared to the previous quarter, representing an annual decline of 17%.

However, at 26,300, there are still more than five times as many buy-to-let mortgages in severe arrears compared with Q3 2006.

Jardine said: “The growing level of severe tenant arrears has yet to filter through into mortgage payment problems for landlords.

“Mortgage rates have kept monthly payments low, but there has also been a change in landlords’ behaviour. With capital gains falling by the wayside in the past six months, rental income has become the most important component in an investor’s annual return – but it also pays a landlord’s mortgage cheque.

“As a result, many landlords are being less lenient with tenants facing initial payment problems, and are looking to use court orders to replace tenants quickly in expectation of finding a financially sound substitute – and potentially an increased rent.

“Nevertheless, we expect that mortgage arrears will climb this year.“We anticipate that both overall arrears and severe arrears will rise, and this will feed into increased tenant evictions and hamper a growing number of landlords’ ability to meet their monthly mortgage costs.”

Paul Goverd, Managing Director of C J Hole in Southville said: “It is of no surprise that at a time of economic challenge with rising unemployment that the number of tenants struggling to pay rent will increase with potential knock on effects for landlords.

Geographically, the issue is perhaps less in Bristol than othe rparts of the UK although rising rents are taking a larger proportion of tenant’s incomes.

We have been advising landlords for some time to be vigilant in their choice of tenants and to protect their rents with rent guarantee insurance.

Whilst there is no 100% safe way to ensure a tenant’s ability to pay, a straightforward and disciplined approach to setting up a tenancy can help mitigate the possibilities of any issues arising. Our experienced lettings team will be pleased to advise.”

All Agents review 2011

CJ Hole is ranked number 1 out of 6 agents in Bradley Stoke.

Here at CJ Hole we are finishing off the year with a few positive notes from our buyers and sellers that have taken the time to rate us as a company on All Agents.

CJ Hole are pleased to announce that we have been ranked number 2 out of 8,083 agents in the UK, with CJ Hole Bradley Stoke overall rating 4.89 out of 5. We strongly believe that this is the best way to market our ability as an agent and are delighted to see that our customers have chosen us to be ranked number 1 in our area and number 2 in the UK.

Most recent quote from a satisfied client – Paul Joyce

“From the initial valuation of my property through to completion of my sale, the staff at C J Hole Bradley Stoke have been professional, friendly, honest, reliable and above all communicative. The sales process was made a lot easier thanks to their efforts. Having dealt with other agents in the area in the past I would strongly advise anyone looking to sell their property to look no further than C J Hole. They really were first class.”

We truly appreciate the time people find to write these comments and a big thank you from all of us at CJ Hole.

http://www.allagents.co.uk/c-j-hole/

The Estate Agency of the Year Awards 2011 – The Sunday Times & The Times

CJ Hole- GOLD

EAA_GOLD_11

Best Medium Agency- South West

“This agency understands that good customer service leads to sales and everything they offer is based around adhering to this ethos”

Our team at CJ Hole are delighted to be presented with the Gold award for Best Medium Agency South West. This achievement is made even greater as the lettings team were awarded the same Gold award earlier this year. Not only does it resemble a brilliant result of what can only be described as a fantastic year it also recognises and rewards our efforts as a company.

Boasting a strong team of sales and lettings, we hope that 2012 will be even more successful for CJ Hole and all our prospective customers.

We look forward to working with you in the new year.

Three quarters of FTBs locked out of market

Only 23% of potential first-time buyers will be able to purchase in the next 12 months primarily because of a lack of deposit, research by Rightmove has revealed

Last year 26% of potential first-time buyers were able to purchase within 12 months. Around 20% and above was the level typically seen pre-credit crunch.

The only region in the UK above that level was London with 41.9% of potential first-time buyers able to purchase within 12 months.

More than half of potential first-time buyers expected to put down over £20,000 as a deposit for a property while the overall average deposit is around £22,000.

The average age of those expected to buy for the first time is younger than commonly reported at 32.

Research showed that nearly two thirds of intent first-time buyers thought that property prices in their local area were above what they would consider to be fair and reasonable.

Miles Shipside, director of Rightmove, said: “With prospective first-time buyers even thinner on the ground than at this stage last year, sellers and their estate agents operating at the lower end of the market will need to fully understand the DNA of this group if they are to capture a sale.

“Given the reality of the ongoing economic situation, many trapped renters are having their home-ownership dreams postponed to their forties at best, or permanently shattered at worst.”

Rightmove used a total of 12,898 responses from potential buyers between 3 October 2011 and 17 October 2011 in their research with data weighted using Census data available from the ONS to ensure results were representative of the UK.

Paul Goverd, Managing Director at C J Hole in Southville said: “There is no doubt that a combination of house prices, tight lending criteria and a lack of ability to save by paying rent is making life tougher for first time buyers. However, we never fail to be impressed by the ingenuity and determination of those who wish to purchase and see many first time buyers managing to do so.

Making sacrifices like reducing spending on holidays and luxury items plus the generosity of family and generating additional income streams from second jobs are all things we have seen first time buyers do in order to secure their first step on the home ownership ladder.”

Repossessions set to rise in 2012 but remain low

Repossessions are set to rise by around 7% in 2012 before falling back in 2013 according to a regional repossession forecast produced by HML, a leading service provider to the mortgage lending industry.

All UK regions will see modest increases in both the rate and number of repossessions, although Northern Ireland will experience a repossession rate more than four times higher than the South West of England, the data shows.

Damian Riley, HML director of business intelligence, said: “The increase in property repossessions during 2012 will be the legacy of high levels of mortgage arrears in 2011 (there is still a stock of 27,300 loans with arrears of more than 10% of their outstanding balance).

“Although interest rates continue at historically low levels and look set to remain that way during 2012, the worsening economic situation will inevitably put pressure on household incomes

“Some lenders may also choose to apply forbearance only when it is deemed fully appropriate to do so and a tougher approach may cause repossession rates to rise further. However, there is no evidence that this has yet started to happen.

“Uncertainty over economic problems in the Eurozone and the knock-on effect they may have in the UK, make forecasting particularly difficult at the moment. However, HML believes that although we will see repossessions peak in 2012, they should, barring any unforeseen sovereign debt, interest rate or other shock, then start to fall back during 2013.”

HML manages around £43bn of mortgages on behalf of 50 leading financial institutions. It forecast in January this year that a total of 33,257 homes would be repossessed throughout 2011 and that would rise to between 35,000 and 40,000 during 2012.

The Council of Mortgage Lenders (CML) recently confirmed that during the first three quarters of 2011 a total of 27,500 properties were taken into possession and said total figures for 2011 would be below its original forecast for the year of 40,000.

Paul Goverd, Managing Director of C J Hole in Southville said: “Given the challenging economic situation it is no surprise that levels of repossessions may be set to rise and for those involved this situation is clearly tragic. However, with interest rates set to stay low, I feel that repossession levels will remain at relatively low levels. Even in what are regarded as strong economic times there are repossessions and current volumes are low when compared to previous periods of economic difficulty.”

Selling Your Property in 2012

Choosing the right estate agent is often difficult and bewildering because it is so important. Do you select an agent with the best local knowledge, the most experience, the finest track record, the best network across the South West, a London office or the highest number of national and even international offices?

Well C J Hole is happy to say that it covers all those factors. Based in Cheltenham since 1995, no one knows more about the area and its property than C J Hole. But, as part of the Mayfair Group, C J Hole is able to offer a great deal more as well. The Mayfair Group has over 300 offices across the UK operating in 47 counties. This means that sellers are assured of the very best coverage to gain the best results.

With a central London marketing office masterminding national and international property publicity, celebrated national and international websites and 16,000 properties to choose from across the globe, buyers naturally are attracted to this cornerstone of the property world.

So if you are thinking of selling your property in Cheltenham in 2012 then look no further than C J Hole.

"Selecting the right estate agent is so important," says, Jeremy Prosser, Managing Director of C J Hole. "Some people do still choose the cheapest agent or the one that promises a tempting but unrealistic and over-optimistic price. But the cheapest option and deluded pricing are, in this day and age, reckless grounds to appoint an agent. With the economy in the state it is, now is the time for sensible, honest, reliable yet assured and innovative estate agency. This is where we come in. We can make sense of the market and publicise your property in such a way that you will reach the widest audience. Our experience will play an important part in how your property is presented to maximise its effect on buyers, and our negotiating skills are honed to perfection though years of practice to ensure we attain the top price."

Now that the choice has been made easier why not call C J Hole today on 01242 255488 and arrange a free, friendly and no obligation market appraisal?

Halifax: House prices static in 2012

House prices in the UK will experience little change from -2% to 2%, Halifax has predicted in its UK Housing Market Outlook for 2012.

It also believes the Bank of England Base Rate will still be 0.5% at the end of 2012.

Favourable affordability, low Bank Rate, low levels of forced selling and the long term supply/demand imbalance were cited as market positives by the lender.

Market negatives were weak economic growth, pressure on household finances, high unemployment and mortgage funding pressures.

Martin Ellis, housing economist at Halifax, said: “The housing market has proved highly resilient in recent months despite the weak economic recovery and the significant deterioration in the outlook for both the UK and global economies.

“Continuing low rates should further support the favourable affordability position for both those who already have a mortgage and those who are able to raise the required deposit to buy a home.

“Overall, we expect continuing broad stability in house prices nationally during 2012. Prices are again likely to end the year at levels close to where they begin with the market continuing to lack any real direction.”

Paul Goverd, Managing Director at C J Hole in Southville said: “Our expectations are for a fairly stable market again in 2012 with volumes continuing at similar levels to 2011.

Despite the Euro crisis and a challenging economic climate, we feel that the combination of low interest rates and an undoubted desire by people to own their own homes will offset any overall market issues and keep values fairly steady with relatively stable levels of supply and demand in the area that we cover.”

Winter Property Tips

Winter conditions affect everyone and so we felt it might be useful to outline some simple actions that homeowners and tenants should undertake in order to avoid potential problems.

Winter conditions affect everyone and so we felt it might be useful to outlinesimple actions that homeowners and tenants should undertake in order to avoid potential problems.

With temperatures reaching very low levels it is advisable to ensure that properties are kept warm, even if vacant, in order to avoid issues such as frozen pipes. Water in frozen pipes expands and can cause flooding when a thaw takes place. Thermostats on heating systems should be set low but at a level to avoid freezing. Insulation of pipes will also help avoid problems.

If a property is set to be empty for some time over the Winter period, consider draining down water and heating systems completely in order to avoid freezing.

Condensation can be a problem during the colder months as people tend to close windows and therefore reduce the amount of ventilation available within a property. Proper insulation coupled with ventilation and heating are the best cures for condensation.

Externally, ensure that gutters, downpipes and drains are regularly cleared. Blocked gutters, downpipes and drains can cause flooding and other water related problems. Large volumes of snow can also cause flooding problems when thawing and so be careful about where one piles up snow from cleared paths and driveways in particular.

A few minutes of preventative action can save a lot of time, inconvenience and cost later on.

Report says a third of people struggling to afford rent

One in three private sector renters is struggling to afford their rent every month, new research claims.

The British Social Attitudes study on housing produced for NatCen Social Research revealed problems are more pronounced in the private sector with 35% struggling to cope with paying their rent compared to 29% of tenants in social housing.

The report also suggested that 32% of people think rents in the private sector are too high, regardless of their own tenure. The proportion is more marked among social tenants with 43% considering private rents unaffordable.

Glen Bramley, professor of urban studies at Heriot-Watt University Edinburgh and the author of the report, said: “At a time when government is challenging the need for social tenancies to last a lifetime, it appears that many who rent from councils and housing associations regard private renting a housing alternative which is both unaffordable and insecure.”

In his spending review last year Chancellor George Osborne announced the coalition was ending the right to a council house for life with new shorter tenancies for families on waiting lists.

At the same time Osborne said social rents would be capped at 80% of the market rate while housing benefit would be capped at £400 a week for homes in the private rented sector.

Alison Park, lead editor of the BSA report, added: “Restrictions on housing benefit will no doubt increase the difficulties that a significant minority of tenants already report in meeting their rent.

“And the two major perceived advantages of social renting – relative low cost and secure tenure – will also be eroded by higher rents for many new tenants and less long-term security.”

The findings follow recent reports that rents are now 4.1% higher than they were a year ago and that the cost of renting is now accelerating at nearly twice the speed of the average salary.

Meanwhile rental arrears have risen and 10.1% of all rent was either late or unpaid in October.

John Heron, managing director of Paragon Mortgages, said: “Rent levels have been increasing in recent months and rental affordability is something landlords must be mindful of when setting rent levels.

“Landlords cannot afford to price their customers out of their properties, so they must take a sensible approach to this.

“But it is not just rent increases that will cause concerns to tenants; everybody is worried about the economy and job security and this will impact on general levels of confidence. Tenants and landlords need a clear and open dialogue to reduce the risk of tenant arrears.”

Paul Goverd, Manging Director at C J Hole in Southville said: “Given the rise in rental values and the current challenging economic climate, it is no surprise that greater numbers of tenants are struggling to meet their rental obligations.

For landlords it is more vital than ever to ensure that they secure the best possible tenant and not just the highest headline rental value.

Referencing and credit checking of new tenants is vital and can help mitigate risk and sensible deposit arrangements should also be in place.

At C J Hole we proactively look to negotiate sensible agreements on renewal and we are finding large numbers of landlords see the benefit of keeping existing tenants rather than risk losing them through being too ambitious with the rent.”

Report says tenants face winter rent rises

Over a third of landlords say they will increase rents over the next six months due to the strength of demand, research from BDRC Continental revealed.

Landlords said the increased cost of running a property portfolio also has also driven them to increase rents.

At the same time one in five landlords claimed their arrears had increased during Q3 compared with the previous quarter.

The potential rent rises are predicted at a time when almost half of landlords have experienced rental arrears in the past three months and almost three quarters of those who have sought possession of their rental property were driven to do so by rent arrears.

Other reasons include anti-social behaviour, which contributed to nearly half of possessions.

One third of landlords said they had never sought possession of their rental property and landlords wait an average of almost four months to obtain possession and pay £866 in legal fees alone.

Mark Long, director for BDRC Continental, said: “Like everyone who owns a home, landlords face the increasing costs of maintaining property and the impact of this is clearly being felt.

“With a background of Local Housing Allowance rates being capped and a restricted amount of finance available via buy to let mortgages, it’s unsurprising that private sector rents are likely to increase by almost 5%.”

Paul Diggle, housing economist at Capital Economics, attributed attractive rental yields to supporting house prices.

Diggle said: “With the outlook for tenant demand universally agreed to be strong, it is surely possible that as investors attempt to lock into the attractive income returns on offer, investment buying has been helping to support house prices.”

Paul Goverd, Managing Director of C J Hole in Southville, said: “Whilst it is true that rents in the private sector have risen and are likely to continue to move slightly upwards as annual tenancies come up for renewal, this is due to supply and demand and not specifically through passing on any increase in costs incurred by landlords. In our experience, landlords place great value on a good tenant and security of tenure and income is far more important than the last few pounds on the monthly rent.

A landlord only needs to incur a void period of just over two weeks to negate any gain from a 5% rise in rental value and, as the economic situation becomes more challenging, a good tenant in the property is definitely worth keeping.

Using a professional lettings agency and proactive property management team will help reduce the potential of arrears or damage and will resolve any issues expeditiously.”

Government housing plans will boost Buy To Let

The Government’s housing strategy will boost the buy-to-let sector and should provoke further debate on tenant rights and the need for a landlord register.

Bob Young, managing director of CHL Mortgages, explains his views on what’s in store for UK housing:

“Whatever your feelings about the proposals within the Government’s housing strategy, it is fair to say that the issue of how we go about housing the UK’s population in the future has been shoved into the limelight by its publication.

“I have been saying for some time that the Government is increasingly looking to the private rental sector in order to bridge the housing gap, and nothing in these ‘new’ proposals suggests this has changed.

“We all know that there is a lack of affordable housing at present, however this is not a simple issue to resolve.

“The measures outlined in the housing strategy will go a little way to helping but, when all is said and done, we are unlikely to be building the number of new homes necessary to fulfil the growing need that is out there.

“Throw into the mix the lack of appetite by the major banks to lend, the difficulty first-time buyers have in securing a deposit, the cuts in housing benefit, and we can see why the Government might be wishing for a much stronger PRS in order to meet its ambitions.

“The fact is of course that many private landlords face the same sort of finance dilemmas that other potential purchasers of properties do.

“While there is clearly a growing demand for private rental properties, meeting it is another matter entirely.

“Plus, as a traditional owner-occupier society, the Government must be wary of being seen to favour the PRS.

“Many would suggest that landlords already hold a particularly strong hand over other purchasers and I have seen calls for the sector to be taxed far more than it is already in an effort, one assumes, to give first-timers a fairer chance.

“Of course this goes against everything the Government wants from the PRS and is therefore highly unlikely to happen.

“Indeed, in a speech this week MPC external member, David Miles, suggested that as we were moving towards a renting society anyway landlords were disadvantaged by the current taxation system given they pay tax on rental income and capital gains tax is levied from any gains made on rental properties.

“As can be seen, with this argument there are countless sides and I suspect that (as with much Government policy) everyone will feel aggrieved by some aspect of it.

Institutional investors

“Given the difficulties private landlords are having it is clear the Government is looking for a much more proactive role for institutional investors within the PRS.

“At the moment just 1% of all residential property stock is owned this way and the Government is clearly looking for a move towards the norm in other European countries where this sort of ownership hits the heights of 10-15%.

“To do this it is changing the way stamp duty is calculated on portfolio purchases and Real Estate Investment Trusts (REITs) are to be reformed in order to entice in more investment.

“I suspect that it will still be some time before we see the large institutions grasping this opportunity however, given the volatility of the global marketplace, they may well view a sector with strong demand and the potential for solid returns as something of a safe haven.

Tenant rights

“To my mind there is absolutely no doubt that the number of private renters in the UK is going to see a significant rise over the coming years.

“It is likely to be serviced for a considerable while longer by private landlords and this being the case, there are some loud calls for much more onus on the rights of tenants.

“If we are seeing a shift to a rental society then this focus is right. Without wanting to take away the entrepreneurial right of the landlord to use their property as they see fit, it is clearly in the long-term interests of landlords to have a clear system where everyone knows their responsibilities.

“Calls for a national landlord register have so far gone unheeded however this would be a step in the right direction.

“We need an influx of quality landlords who can deliver both in terms of properties and in terms of the care they give to their tenants and the service they provide.

“Overall the housing strategy should be welcomed. It will result, I am certain, in a growing buy to letlending market.

“There were estimates made at the recent Mortgage Business Expo that buy-to-let lending could hit £20bn by 2015 – I see no reason why this shouldn’t be the case.

“2012 is likely to bring with it more appetite from existing players and some new lenders dipping their toes in.

“Demand from tenants is strong, it is now all about how we meet that demand in the months and years ahead.”

This article originally appeared in Mortgage Introducer on 1st December 2011

Top Tips for Selling Your Home this Winter

Selling your home during the festive season requires a different spin on some good old advice….

It’s about this time of year that the media usually announces that the property market has packed up for the festive season and whilst hope of a new home by Christmas will have gone for most buyers by this time, others will carry on regardless.

You might just find that those who do keep searching are also the most motivated to move; those on a deadline; those with a baby on the way; those who have a buyer lined up for their property, those who will not waste their own time or yours at such a busy time of the year.

Yes, winter is quieter, but not that much quieter (129,573 property sales between Dec 10 and Feb 11), so on the basis that people are still looking, lets turn our attention to making your property most appealing during the festive season with a slightly different spin on some good old advice….

Bah Humbug!

The traditional logic is that a bit of cosmetic redecoration to a property can help to make it more appealing. However, giant Christmas trees filling the living room and multi-coloured tinsel hanging from every picture and light fitting is not going to do much to help people get that sense of a blank canvas that they can make their own.

If you’re more concerned about welcoming buyers through the door than Santa down the chimney, you might want to consider keeping seasonal decorations a bit more conservative than usual. A small, stylish tree can still act as a centrepiece to a living room and a welcomingly decorated fireplace will do the same. Seasonal candles and pot-pourri are still going to help you give the place a seasonal feel instead of going to town on tinsel.

Present without Presents

There’s no point in opting for the aforementioned small tree if the presents then take up every square inch of visible carpet, so for now, keep them somewhere that neither the kids nor buyers will find them.

This is probably a good opportunity to get ride of some of last year’s kitchen gadgets and other unwanted paraphernalia to help make the place look de-cluttered and more like a show home.

Set up the Spare Room

Never underestimate the importance of bedrooms; it is the reason 60% of people move. A bedroom will be perceived as being of more value them a study or storeroom, so if you are expecting visitors to stay over the festive period, don’t use the spare room as a dumping ground until the last minute. Dismantle that old desk and hide the computer now and get a nice looking bed set up in preparation for someone who wants to stay at least for a day and maybe even permanently.

Light the Way!

You have probably heard people talk about “kerb appeal”. This is basically ensuring that someone’s first impression of a property; the first 30 seconds when they pull up outside (to the kerb), is a good one.

The traditional logic is to spend on plants and other items to frame the front door and make the entrance look grand, but during the winter months when daylight is in short supply, they might act more as camouflage than decoration.

Light your porch well so that buyers walk up to your front door with a feeling of warmth and welcome and so they don’t spend the next 30 seconds fumbling around in the dark for the doorbell.

We don’t mean 1001 fairy lights, but other exterior lighting can help to make a property look stunning in dark days and maybe a few evergreen shrubs could help to complete the look.

This additional effort can help your property to stand out online as well as to increase kerb appeal. Night time photography of your property can look really stunning and those browsing Rightmove will see your property differently from the vast majority who have to rely on wintry daytime shots.

Festive Open House

Of course, you could always take a reverse logic approach to the above and stage your property like you are anticipating the arrival of celebratory guests.

An Open House Day is a tactic that we use to create a frenzy of interest by inviting lots of prospective buyers to your property on a certain day and this can sometimes result in multiple offers and a higher price.

If we recommend an Open House Day for your property then it is probably a property that lends itself to entertaining, so why not show that off by getting into the festive spirit with mince pies and mulled wine for potential buyers. Hopefully, they will be mulling over an offer by the time they have enjoyed a glass and you will then really have something to celebrate.

Government scheme: new build indemnity

A new strategy to tackle the housing shortage, boost the economy, create jobs and give people the opportunity to get on the housing ladder has been announced by the Prime Minister and the Deputy Prime Minister.

The Prime Minister and Deputy Prime Minister said their new plans will give the housing market a shot in the arm by boosting supply, easing financial pressures and helping with demand.

They believe their plans will “drive up the level of house-building, ensure we are helping new home owners and boost consumer confidence”.

They said their “strategy will break the current cycle in which lenders won't lend, builders can't build and buyers can't buy. We'll be making it easier for people to secure mortgages on new homes, help people get on the property ladder, address unfairness in social housing and ensure homes that have been left empty for years are lived in once again”.

At the heart of the strategy is a new build indemnity scheme that will give a helping hand for up to 100,000 prospective buyers who are currently frozen out of the housing market because of the need for large deposits.

Under the proposals, homebuyers will be able to secure loans on newly built homes with only a 5% deposit.

The Government and house-builders will help provide security for the loan, so if the house is then sold for less than the outstanding mortgage total the lender will be able to recover its loss.

Through the scheme lenders will be encouraged to offer mortgages with smaller deposits, increasing demand for new homes and giving a welcome boost to the housing market.

The borrower’s own liability is exactly the same as on any other mortgage. The indemnity fund does not indemnify the borrower; it simply enables them to get a mortgage for a higher proportion of the value of the property than would otherwise be available.

The borrower will still be required to repay any shortfall incurred on the property if they fail to keep up their mortgage payments and the lender is forced to take possession and sell. The only difference is that, in those cases where the borrower cannot or will not meet their liabilities, the lender will be able to offset 95% of its loss against the indemnity fund.

The Council of Mortgage Lenders today welcomed the promise of government backing for the new build scheme which it has been negotiating together with the Home Builders Federation.

CML Director General Paul Smee commented: "This scheme is good news for home-buyers, developers and indeed the UK economy. Lenders will be able to reduce the level of deposit needed by home-buyers in the new build sector, enabling more buyers to buy and so supporting the flow of new housing development, with all its positive consequences for jobs and the economy as a whole."

Helen Adams from first time buyer advice-site FirstRungNow.com commented: “Today’s news that the Government plans to make more land available for properties and a massive injection of £400million pounds into housing will be warmly welcomed by aspiring home owners.

"With house prices remaining out of reach in many areas of the country and mortgages for first time buyers being difficult to secure - partly because of the deposit requirements - this scheme will help more first time buyers and therefore help to kick-start the housing market.

"My only hope is that the mortgage indemnity support will not just be for new-build as funding which only supports new-build is good for the house-builders who are being subsidised but does little to move the whole market as there is no onward chain when a new home is purchased.”

Nationwide Building Society has confirmed that it will participate in the New Build Indemnity Scheme that has been announced today.

In order to encourage housing market activity, Nationwide would also like to see the current annual cash ISA limit of £5,340 increased to the maximum £10,680 in order to encourage those customers who are saving for a deposit.

Graham Beale, chief executive of Nationwide said: “There is clearly a housing shortage in the UK and we recognise the importance of the housing sector to the wider economy.

"This scheme seeks to boost the supply of properties available with modest deposits and, as such, we are pleased to be part of it, helping to shape its design and development.

"We would really like to see people who are saving for a deposit given more help through higher ISA limits and the flexibility to move their funds between cash and equityISA products, without the restrictions that are in place now.”

Paul Goverd, Managing Director of C J Hole in Southville said: “We welcome any initiative that is likely to enable more people to realise their home ownership goal although the proposals will not necessarily make it any easier to obtain funds and are aimed at new homes buyers only with the obvious and natural blessing of new homes developers.”

Mortgage Repossessions Remain Low in the UK

The number of mortgage borrowers in arrears falls steadily, according to the Council of Mortgage Lenders (CML).

The latest report published by the Council of Mortgage Lenders suggests that the number of mortgage arrears and property repossessions remained low in the third quarter of 2011.

As such, only 0.08% of all homes in mortgages were repossessed. This constitutes 9,200 homes, slightly up from 9,100 homes in the second quarter of 2011.

According to CML experts, the level of property repossessions has remained stable in the past 6 months. Overall, there were 27,500 homes repossessed in the first 3 quarters of 2011.

The low level of property repossessions in the UK is due to the measures taken by British banks and government. Lately, they have worked hard to avoid sharp increases in mortgage arrears and repossessions.

Paul Smee, director general of the CML, said: “The fall in the number of mortgages in arrears, and the stable picture on repossessions, are testament not only to the beneficial effects of low interest rates, but also to effective arrears management, and good communication between lenders, borrowers and debt counselling organisations.”

Paul Goverd, Managing Director of C J Hole in Southville said: “This is clearly good news and can be seen as a boost in confidence for the property market despite the very challenging current economic environment.”

More landlords seek to raise funds for more purchases

More than one-third of buy-to-let cases introduced through mortgage brokers in the third quarter of this year were remortgage applications.

Specialist lender Paragon says that over four in ten of intermediaries’ landlord customers are now growing their portfolios.

According to Paragon, 42% of brokers said more than half of their buy-to-let cases during the period were landlords looking to add to their buy-to-let portfolios.

When asked how they would describe the current level of landlord demand, 26% said that it was either strong or very strong, and 45% described it as stable.

The second most popular reason for landlords obtaining a buy-to-let mortgage in the third quarter was remortgaging, with 34% of intermediaries saying that was the case.

When asked for the reasons behind the remortgaging cases in Q3, the most popular reason was capital raising (44%), followed by 38% looking for a better rate of interest.

Intermediaries are also expecting to increase the amount of buy-to-let business they do in the final quarter of the year, up by 4.2% on average.

John Heron, managing director of Paragon Mortgages, said: “There is incredible pressure now on rental stock. Letting agents in many regions are reporting that they simply do not have properties available for an increasing number of potential renters. In order to meet this increasing level of demand, landlords need to continue to grow their portfolios.

“It is very encouraging that intermediaries are seeing an increase in landlord clients looking to add further property to their portfolios in the coming months.“However, intermediaries have said that there needs to be greater innovation in buy-to-let, including access to higher LTVs. We hope to see more of this coming through during 2012.”

Paul Goverd, Managing Director of C J Hole in Southville said: “With tenant demand outstripping the supply of property to rent we have seen rental levels in crease and landlords benefit from improved yields.

With a huge selection of attractive mortgage schemes available, it is clearly being seen by many as an ideal time to invest in residential property.”

Most homeowners ignore remortgage benefits

Around 58% of homeowners have never changed their mortgage outside of moving house according to research from Barclays.

The UK is a cost-cutting nation with 92% of homeowners currently trying to reduce their monthly outgoings. Yet the research from Barclays shows that Brits are ignoring how they could cut one of their biggest monthly outgoings - their mortgage.

The research shows that there is a clear disconnect with people failing to realise how much they can actually save by swapping their mortgage. A staggering 58% of homeowners say they have never remortgaged outside of moving home but the majority (74%) said that if they could save up to £50 a month they would consider doing so.

Those polled thought swapping a mortgage could save them around £10 a month, but Barclays’ calculations show remortgaging could save homeowners much more.

With homeowners living in their homes for on average over 16 years, they are potentially missing out on years worth of decreased mortgage payments. In fact, Barclays’ data shows its range of fixed and tracker rate products could save homeowners £346m over the next two years alone.

Andy Gray, head of mortgages at Barclays, said: “The fact that around six in 10 homeowners have never changed their mortgage outside of moving house, suggests that they simply don’t realise the levels of savings to be had by remortgaging.

“As monthly outgoings rise, and Brits fight to cut their costs, it’s important that they consider addressing their mortgage.”

Nearly half of those surveyed (44%) say they spend more time on cost-cutting over the past 12 months – with three quarters of homeowners (76%) spending up to three hours a month on reducing their monthly costs which demonstrates that every £1 is important. Barclays is encouraging people to make their time, as well as their money, work hardest to ensure they prioritise which costs could achieve the greatest savings.

Gray added: “The fact that the majority of people would remortgage to save £50 a month demonstrates that homeowners consider these potential savings to be worthwhile.

“There are an increasing number of good mortgage deals to be had so we are urging homeowners to act now and look at the rate they are paying, to allow them to get more out of their hard earned cash.”

Paul Goverd, Managing Director at C J Hole in Southville said: “Our mortgage advisers will be pleased to provide information and quotations for people considering remortgaging as well as those looking to buy and move.

With the huge range of schemes available it makes sense to take professional advice.”

Number of buy to let mortgage products has doubled

The number of buy-to-let products available has more than doubled since 2008 from 237 to 483 reveals research by Defaqto.

70% of buy to let mortgages were broker only products or available through both intermediaries and providers directly in 2008. The proportion is now 86%.

Over the same period, the number of products only available through brokers has grown from 24% to 60%.

The number of buy-to-let lenders has also increased from 56 to 63, a quarter of which operate only through intermediaries.

David Black, insight analyst for banking at Defaqto, said: “The last few years have seen significant growth in the number of buy-to-let mortgage products on the market. This shows that, although the buy-to-let sector has contracted in terms of lending levels in recent years, the market is certainly becoming more buoyant with buy to let regarded by many as a potential growth area.

“Our analysis also indicates that intermediaries are becoming ever more important within the specialist buy-to-let mortgage sector, with the number of brokered products increasing rapidly since 2008.

“The key challenge for brokers is how to convert these opportunities for the benefit of their business. Essentially, they need to play to their core strength: giving advice – and this is particularly important in the buy-to-let sector where people are likely to need more guidance when selecting a suitable mortgage.”

Paul Goverd, Managing Director C J Hole in Southville said: “This report shows the huge range of buy to let mortgage product available in the market and confirms the need for landlords and potential landlords to seek good advice when looking for a loan.

Our mortgage advisers have access to a wide range of schemes and will be happy to assist anyone looking for a buy to let mortgage.”

Sales of £1m plus homes reach pre-crunch levels

Sales of homes worth £1m or more have reached their highest level since the peak of the housing market in 2007, according to Lloyds TSB.

There were 3,375 sales of £1m-plus properties in the first six months of this year, an increase of 10% on the same period in 2010 and the highest number since the first half of 2007, when there were 3,680 sales.

The strength at the top end of the market was in marked contrast to overall transactions, which declined by 9% in the first half of this year.

Despite the rise in sales of high-end properties, they only account for a tiny proportion – just 1.1% – of total transactions. Even in London, they only account for 5.7% of all sales.

Suren Thiru, Lloyds TSB housing economist, said: “Strong demand from wealthy cash rich buyers both in the UK and from overseas, as well as limited supply of such properties, has helped to boost the level of activity at the very top end of the housing market.

”Almost two-thirds of the £1m-plus sales were in London, with 2,163 sales in the first half of the year compared with 1,926 in the same period in 2010.In the North-East there were just 13 sales of £1m-plus homes. However, this compared with only three in the first six months of 2010.

Paul Goverd, Managing Director of C J Hole in Southville said: “Quality property in sought after locations has always performed more strongly than the rest of the market as buyers tend to be owner occupiers and take a longer term view of the market.”

Trapped renters now constitute over half of the UK rental sector

Trapped renters now constitute over half of the UK rental sector, according to Rightmove’s Quarterly Consumer Confidence Survey.

Trapped renters, tenants who would like, but cannot afford to, buy, make up 55% of the rental sector, with one in four of them over the age of 40, according to the portal’s latest Consumer Rental Forecast. Thus, this group faces the prospect of having to choose between a heavily reduced mortgage term or continuing to pay off a mortgage into their 70s and beyond.

Miles Shipside, director of Rightmove, says: “Over half of those in rented accommodation would like to buy now, but can’t make the sums add up and, as a result, are trapped. The global economic woes that have left first-time buyer numbers at record lows will shatter the goals and aspirations of many as they face the reality of renting for far longer than they originally planned. “Trapped renters over the age of 40 could face the prospect of being an OAP mortgagee, or face difficulty getting a 25-year mortgage term if it takes them beyond lenders’ retirement age criteria.”

Rightmove’s survey also shows the growing gap between demand and supply. Demand continues to set records, whilst available stock is down 5%on the last quarter as the supply of new rental properties remains muted and tenants stay in properties for longer. The lack of supply means renters are resigned to pay more, with 53% of them expecting rents to rise in the next 12 months and 39% can see themselves still renting in three years’ time.

This is good news for investors. The combination of high tenant demand and upward rental pressure will be particularly appealing to long-term investors. The survey reveals that 41% of investors claim that attractive yields from rental returns, compared to their other investments, are their main reason for investing in property, up from 24% in Q1 of this year.

Shipside adds: “Currently, the stock market offers the certainty of a stressful rollercoaster ride and safe cash investments deliver the certainty of below inflation returns. Understandably, the solidity of bricks and mortar combined with high tenant demand and rising rents has growing appeal as a physical asset that could prove to be a better hedge against inflation.”

Paul Goverd, Managing Director of C J Hole in Southville said: “This survey highlights the difficulties for many in being able to obtain a mortgage and purchase a property. It would also indicate a potential issue for the private rented sector if high loan to value mortgage lending suddenly became freely available and there was an exodus of tenants.

The reality is that the market is adjusting to a new order of things and I expect this to continue for some time.”

Mortgage rates hit record low

A report by Countrywide shows that the average interest rate of purchase and remortgages has fallen to 3.71% in September 2011, the lowest rate since September 2008.

Countrywide revealed that mortgage rates have fallen by 2.41% over the last three years. It also showed that both fixed rate and tracker mortgages have become significantly cheaper across the board, with most lenders becoming more competitive on pricing.

Figures from the Bank of England also reflect this, showing that mortgage rates across two, three and five year terms are at their lowest level over the last six years.

Nigel Stockton, financial services director at Countrywide, said: “Despite ongoing pressures on lending institutions and the UK economy as a whole, we continue to see some of the cheapest ever remortgage fixed rate products being offered, with some two-year rates on offer currently as low as 2.54%.”

Countrywide’s recent figures whow that the avearge two-year fixed rate mortgage produce has fallen by 1.59% over the last two years, with rates for two-year tracker mortgages fallen by 0.78%.

However, as Countrywide report the gap between monthly payments for tracker and fixed rate mortgages narrowing, a report from the Council of Mortgage Lenders (CML) has revealed that ex-fixed rate borrowers are paying less than their original mortgage. According to its most recent figures, 1.8 million borrowers who are currently on their lender’s reversionary variable rate are paying around £2,600 a year less than they were under their previous fixed rate deals.

And it seems that many borrowers are adopting the “wait and see” approach. The research reveals that markets currently expect the Bank of England base rate to rise from its current 0.5% to around 0.9% by the end of 2012 and 2% by the end of 2014.

Under this scenario, the CML estimates that 85% of those borrowers who have reverted to variable rates would still be paying less than their original morgage payment by the end of 2012, amd around 58% would still be paying less than their original payment throughout 2014.

Paul Smee, director general of CML, said: “The choice of whether or not to fix, and for how long, involves taking a view about the likely direction of future interest rates, along with a personal consideration of how much rate risk is acceptable to a household. Given the economic uncertainty, it is not surprising that for the time being many of those who have reverted onto variable rates and could remortgage are choosing to wait before they decide what to do next.”

Paul Goverd, Managing Director of C J Hole in Southville said: “Despite the general doom and gloom about the economy, there are some real shafts of light for those in a position to take advantage of these very attractive mortgage rates through either moving home or remortgaging. Our mortgage advisers will be pleased to help you find the deal that is best for your circumstances.”

If you want to get ahead, get a house!

Demonstrating the short, medium and long term strength of residential property when compared with other forms of investment.

I recently attended the national conference organised by Property Drum at which Alan Collett from Allsop Residential Investment Management and the forthcoming President of RICS was a speaker.

Alan is a leading property expert in the field of residential investment and, armed with a huge array of data and graphs, proceeded to demonstrate the short, medium and long term strength of residential property when compared with other forms of investment.

Paul Goverd
Managing Director
C J Hole Southville

Below is a Blog produced by Michael Day of Integra Property Services following Alan’s presentation.

Many of us have various long term savings plans, unit trusts, pensions, endowment policies etc where highly paid fund managers aggregate the monies we pay and invest on our behalf.

There are basically three categories of investment: bonds, equities and alternatives. Property falls within the alternatives category alongside investing in pork bellies, fine art or vintage wine.

Most investment funds have a mixture of gilts and bonds together with stock market investment in shares plus an investment in commercial property such as offices, shops and industrial units.

These investments look for appropriate combinations of security, growth and income and, almost without exception, do not include residential property.

And yet the returns on investment in residential property far outperform those from any other group over the last five, ten, twenty or even fifty years.

In fact, over the last fifty years, real house prices have risen by 271% compared to a 54% fall in real commercial property value.

This represents a long run residential value increase of inflation plus 3.3% per year compared to inflation minus 1.2% per year for commercial property.

These figures come from the IPD (Investment Property Databank) indices.

The numbers are based on the total return on residential investment and are net of capital expenditure and receipts which reflect a true position (as the reflect the cost of owning and maintaining the investment) rather than any of the house price indices with which we are all familiar.

Over the last ten years, the annualised total return on various investments is as follows:

Residential market lets 10.10%

Retail Property 7.30%

Industrial Property 6.60%

Gilts 5.90%

Offices 5.60%

Equities 3.70%

The cash return since December 2000 based on a £100 investment breaks down as follows:

Residential £262 10.10%

Retail South East £228 8.60%

Retail Warehouses £221 8.20%

Office West End & Mid Town £220 8.20%

Industrial South East £194 6.80%

Standard Retail Rest of UK£191 6.70%

All Property £191 6.70%

Industrial Rest of UK £185 6.30%

Shopping Centres £179 6.00%

Office Rest of UK £173 5.70%

OfficeCity £157 4.60%

Office Rest of South East £150 4.10%

Eggs and baskets are often talked about in regards investment portfolios and it is probably sensible to have a good spread of investment to get the balance between security, growth and income handled appropriately. However, the evidence is compelling. Residential property is the best performing investment.

Now, where can I get a mortgage?!

Tenant demand continues to spiral, say landlords

Tenant demand continued to climb during the third quarter of the year, research by specialist buy-to-let lender Paragon has revealed.

The Private Rented Sector Trends Report for the third quarter gives a detailed overview of the sector and landlords’ views on performance.

More than four out of ten landlords (44%) said tenant demand increased during the third quarter and just 4% thought it declined. When asked for their forecast of tenant demand for the next 12 months, almost half of landlords (49%) said they expect it to continue to increase.

Rental income remained healthy for a third consecutive quarter with 34% of landlords reporting an increase and only 4% saying it had decreased. Of those landlords who achieved an increase in Q3, 11% said it was between 2% and 4%.

The report also reveals a shift in the types of properties that landlords are looking to purchase. Terrace houses were the most popular choice at 41% followed by flats (35%) and then bungalows – which have surged in popularity from 2.7% in Q2 to 10% in Q3.

Nigel Terrington, chief executive of Paragon, said: “Tenant demand has continued to increase for a third quarter, which is perhaps not surprising considering the current squeeze on the UK housing market as a whole.

“More people than ever before are relying on the private rented sector, so it is positive to see that landlords are looking to invest in their portfolios and are also diversifying the types of property in which they are investing in order to meet tenant demand.

”Paragon’s PRS Trends Report for Q3, from July 1 to September 30, also shows:

• Yields dropped only very slightly from 6.2% in Q2 to 6.1% in Q3

• Average portfolio value increased from £1.42m in Q2 to £1.48m in Q3

• Continued improvement in the perception of availability of buy-to-let finance, with 27% of landlords saying they thought it was at least reasonably available

• Average void period for Q3 was 2.8 weeks

• One in ten landlords are currently using social media channels for business purposes, mainly Twitter and Facebook, to advertise vacant properties for rent

Paul Goverd, Managing Director at C J Hole in Southville added: “Our lettings department continues to report strong demand which remains ahead of supply. As a consequence there is still some upward movement on rental values although this must be tempered against a challenging economic picture where security and quality of tenant and not just the highest rent available are key factors for landlords.”

Buoyant Buy To Let Market!

Although the uncertain economic climate is weighing negatively on house purchase activity, buy to let lending is strong.

The rental market is seeing healthy growth due to tight lending and high deposit demands which are causing many people to rent. Renting also allows people to easily move to where jobs and therefore better security exist in this time of high unemployment.

Buy to let activity was generally flat in 2010 seeing only a brief rise and then decline until the start of 2011 when activity started to rise dramatically. Figures from moneyfacts.co.uk show that the size of the buy to let sector has increased considerably with in the last 12 months with professional landlords taking advantage of stagnant house prices and rising rents.

The director general of the Council of Mortgage Lenders (CML) has said that "generally, prospects for the rental market are good".

CML figures show that there was a significant increase in buy to let re-mortgage cases in the first and second quarters of this year and it appears that in a large proportion of these cases, landlords are releasing equity to generate capital for portfolio expansion. In a market characterised by high rental demand, this could become more commonplace.

In the last few days representatives from the Woolwich have announced that they are aiming to build their presence in the Buy to Let market significantly. Both the Royal Bank of Scotland and Santander are rumoured to be considering launching buy to let products, and with Accord already trialling new buy to let products in the South East, the future of the buy to let market looks positive.

Rise in tenants seeking help with rent arrears

The charity National Debtline has reported an 84% rise in the number of tenants seeking advice on rent arrears.

Paul Goverd

The charity National Debtline has reported an 84% rise in the number of tenants seeking advice on rent arrears.

The increase has been over the last four years and highlights the problems tenants are having in making ends meet as rents, utilities and the general cost of living rise.

Now, nationwide tenant eviction and referencing firm Landlord Assist is urging landlords to take immediate action if theirtenants default on rent payments. The firm emphasised that most tenants who are unable to pay do not withhold rent willfully, but because they have fallen on hard times.

Graham Kinnear, managing director, said: “The economic situation is really impacting now. We are referencing tenants who are wanting to trade to smaller properties as they are no longer able to afford their rent.“

There are increasing numbers who are being made redundant and increasing numbers who are finding it difficult to meet their rental obligations due to soaring fuel and utility prices.“Landlords should take early action if their tenants default on payments. Arrears situations rarely rectify themselves, and in the current economic climate, landlords need toprotect their interests.“

Although no landlord can predict a tenant falling on hard times, performing credit checks at the start of an agreement can help landlords to assess the tenant’s ability to pay the rent. Landlords should also consider rent guarantee insurance policies to protect their income should a tenant fail to pay on time.”

Paul Goverd, Managing Director at C J Hole in Southville said: “The situation being reported by the National Debtline is perhaps not unexpected although the picture being painted is certainly much worse than our own experience where arrears and issues remain very low. This is, I am sure, in part due to our geographical location where the downturn in the economy has not impacted as strongly as in other parts of the country but mainly due to our vigilance in ensuring that tenants are appropriately referenced and credit checked before the commencement of the tenancy.”

Terrace values climb the most

The average price of terraced homes in the UK has risen by more than any other type of property over the last 10 years, according to new Halifax research.

Owners of terraced properties have seen the value of their property rise by an average of £118 a week over the past decade with the typical price of a terraced home increasing by 68 per cent (£61,489) from £89,843 in 2001 Quarter 2 to £151,332 in 2011 Quarter 2.

Over the past 10 years, the price of the average UK home has risen by 53 per cent from £116,325 in 2001 Quarter 2 to £177,740 in 2011 Quarter 2. Bungalows recorded the second biggest increase (68 per cent), followed by semi-detached properties (62 per cent).

Despite terraced properties recording the strongest price growth over the past decade, they remain the most affordable property type. The price of an average terraced property is 15 per cent below the average UK house price of £177,740 and 45 per cent lower than the price of the average detached home of £273,173. In 2001, the typical terraced house price was 23 per cent lower than the UK average house price for all properties.

Terraced homes also saw their share of all house sales rise by more than any other property type over the past decade, increasing from 31 per cent in 2001 to 34 per cent in 2011. In contrast, detached homes were the only property type to see a drop in their share of all sales since 2001, declining from 21 per cent to 14 per cent. This decline was driven by a large drop in the proportion of home movers buying detached homes (from 30 per cent to 22 per cent).

Semi-detached and terraced homes have remained the most popular types of property purchased over the last 10 years. These property types represent nearly two-thirds (63 per cent) of all home sales in 2011; up from 59 per cent in 2001. For first-time buyers, semi-detached homes have risen in popularity, accounting for 29 per cent of purchases in 2011 compared with 26 per cent in 2001.

Flats recorded the smallest price growth over the decade to 2011 with the value of a typical flat rising by 49 per cent. This relative underperformance largely reflected an over-supply of this type of property in some parts of the country. Flats more than doubled during the 2000s, as a proportion of all dwellings built in England, rising from 20 per cent in 2000/2001 to a peak of 50 per cent in 2008/09. This proportion has since dropped to 35 per cent in 2010/11 during the marked downturn in the housing market.

Terraced homes account for the biggest price growth in most UK regions

Terraced properties recorded the largest price increases of any property type in eight of the eleven UK regions tracked1over the last 10 years. In contrast, detached properties and flats witnessed the smallest percentage gains over the period across nine regions.

Yorkshire and Humber and Scotland accounted for the biggest price rises across all five property types since 2001, while London accounted for the smallest gains across all property types.

Suren Thiru, Halifax housing economist, said:

“Although all property types have recorded significant price increases overall during the past decade, terraced homes have seen the biggest growth. Demand for such properties is likely to have been supported by their relatively favourable levels of affordability over the period. The rapid house price rises during much of the 2000s priced many potential home movers out of the upper end of the UK housing market.”

Paul Goverd, Managing Director at C J Hole in Southville said: “Our records would indicate that terraced houses, perhaps unsurprisingly, change hands more regularly than other property types and demand remains strong even in challenging market conditions.

Most young people aspire to buy own home

More than eight out of ten young people (18-24) still aspire to own their own home by the time they are 30.

This is according to the latest quarterly consumer survey published by The Building Societies Association which shows that amongst potential first-time buyers overall, more than nine in ten (94%) respondents say that they would ideally have bought by the time they are 35 with more than seven in ten (75%) having an aspiration to become a homeowner in their twenties.

'Property Tracker', which reports the views of over 2,000 UK adults about the housing market every three months, also highlights a sharp jump in the number of people who see raising a deposit as a barrier to home ownership, up from 62% in June to 69% in September, the highest percentage reported for this factor since the survey began in June 2008.

Conversely, only 16% of respondents said that they were concerned about future falls in house prices, down from 51% in September 2008 and 27% this time last year. In fact, almost one in four of those questioned (39%) thought that property prices would rise over the coming 12 months, with 26% believing that they would fall. The median forecast is for house prices to remain flat for the next 12 months.

Consumer confidence in property purchase has improved marginally in the last three months with 43% believing that now is the right time to buy, up from 41% in June. Confidence is markedly higher amongst those already on the housing ladder where 51% thought that now was a good time to buy compared to just 32% of those who are currently renting or living rent-free.

Similarly 22% of existing homeowners felt that this was not the right time to buy compared to 37% of those in the rented sector or living rent-free.

Commenting on the views of UK consumers, Paul Broadhead, BSA head of mortgage policy, said: "It is encouraging to see that the aspiration to buy is still strong among young people.

“It's clear, however, that consumer sentiment coupled with some perceived barriers is dampening activity in the housing market right now. Undoubtedly consumers have some fears over long term job security and unsurprisingly pressure on household budgets is also having a huge effect.

"On the other hand, the availability of mortgage finance has improved, if modestly, and some lenders, primarily mutuals, are now offering higher loan to value ratio loans tailored to the first-time buyer market.

"There is no doubt that the economic climate is difficult; however consumers are generally more upbeat today than they were back in 2008."

Paul Goverd, Managing Director at C J Hole in Southville said: “This report clearly demonstrates the desire of young people to follow the UK culture of home buying despite current economic challenges. In turn, this also means that the medium to longer term outlook for the property market remains very positive.”

Housing deposits increase tenfold in twenty years

New research from first direct shows the increasingly difficult task house buyers face, with rises in the cost of properties and required deposits far outstripping rises in income.

The research found that since 1990, the average housing deposit has risen from £6,793 to an average of £65,9241 in 2011.

A combination of an increase in house prices and a reduction in the amount of mortgage lending by many banks and building societies means that house buyers face an almost tenfold increase (9.7 times) in the required deposit on a property.

House prices have also risen in the same period by a factor of 4.32. With the average household income having risen by just 2.53 times in the same period, buyers must now save for far longer to achieve this milestone purchase.

The research also found that 2010 was the most difficult year to buy a house in the past twenty years with the average house price 6.3 times the average household income, and the average deposit running at 1.7 times the average income. The most affordable years were 1995 and 1996, with the house price ratio at a low 3.4 and the deposit ratio also the lowest it has been at 0.3 times the average household income.

The past two decades have endured two recessions - the early 90s recession which lasted from Q3 1990 to Q2 1992 and the late 2000s recession which officially ran from Q3 2008 to Q4 2009. In the first recession, household income rose albeit modestly and the average deposit required dropped and stayed low for most of the 1990s as did inflation - good news for first-time buyers.

However, the more recent recession has been less kind both to existing homeowners and especially to first-time buyers. Between 2008 and 2009, average household income dropped by £1,688. While house prices also dropped by £10,148, a negative development for existing homeowners, the average required deposit rose by over £10,000 in one year alone, hitting first-time buyers particularly hard. Despite house prices recovering somewhat, to date the average housing deposit has risen by £22,451 since 2007 heaping misery on FTBs, whose average age has risen to 374.

Indeed, the average LTV in 1990 was 88%, rising to 90% in the mid 90s and now at its lowest ever at 73%.

Bruno Genovese, senior savings product manager at first direct said, "Much has been made of rising house prices, but the average deposit needed in the first place has actually risen more than twice as fast as house prices and almost four times as fast as income.

“This is why we are seeing first-time buyers getting older, with more and more people struggling to get on the property ladder.

"In this climate, it really is important that people save as much as they can to raise the money for a deposit. Longer term savings accounts offer a better return and remove the temptation to dip into the funds so these are a good option for people determined to save."

Paul Goverd, Managing Director at C J Hole in Southville said: “The figures clearly show statistically the difficulties of buying a home, particularly for first time buyers. However, it has always been a big step and now, with many parents having significant equity in their properties and helping out, there are still first time buyers in the market, albeit in lower numbers than previously.

The days of having a good income and no cash and yet still being able to buy are gone and a return to needing to plan and save look set to stay. This has seen an increase in demand for rental property but we are still seeing many buyers showing incredible discipline and taking advantage of low interest rates through a prudent approach to saving the required deposit.”

Surge in family-focused letting

There is a surge in the proportion of landlords planning to purchase family-focused housing reveals research by Paragon.

The types of property landlords are looking to invest in during the third quarter of the year are more suited to meet the needs of families moving into the private rented sector

Of those landlords planning to purchase during the quarter, 41% were looking to invest in semi-detached houses and 22% were looking to buy a detached property.

The buy to let lender said it was a common perception that the private rented sector is largely made up of young people and couples. However the research showed that a significant proportion of landlords were letting to families and this looked set to increase during the coming months.

Paragon also said that with the increasing strain on the social housing sector, a constrained owner-occupier mortgage market and continuing wider economic difficulties, more families are looking to the private rented sector as their tenure of choice.

Nearly half of landlords involved in the research, 45% have families as tenants making them the fourth largest tenant type.

The remaining 55% let to young couples with 52% letting to professionals and 50% to young singles.

Nigel Terrington, chief executive of Paragon Group, said: “It is interesting to see more families relying on the private rented sector and this is certainly a trend which I expect to stay.

“Young couples and single person households will continue to account for a large proportion of the sector but I think over the next few years we will see more families making use of the flexibility and affordable accommodation that renting provides.

“With a rising UK population, which is set to grow from 62.3m today to 65m in 2016, landlords need to react quickly to a changing tenant demographic as otherwise demand will most certainly exceed supply quite considerably.”

Paul Goverd, Managing Director at sales and lettings agents, C J Hole at Southville added: “It naturally makes sense for landlords to invest and make available properties where there is a good level of demand and which will command good rents and produce attractive yields.

With around 17% of all UK households now in the private rented sector, it is no surprise to see growth in the family orientated sector of the market.”

Scramble

There is a lot of scrambling going on at the moment. Scrambling for university places, scrambling to recover from riots, and scrambling to handle trading, employment, banking and international currency difficulties.

On the surface there is no such scramble in the property market. But don’t be deceived. Under the surface there is a great deal going on. Sellers are scrambling to sell and buyers are scrambling to buy. For buyers the pendulum seems once again to have swung in their favour. It is another good time to buy. This is particularly so in the middle market sector. Not perhaps so much for first time buyers beset with mortgage deposit challenges, but even in this sector buy-to-let investors are benefiting from a very active lettings market with rentals on the rise. In some circumstances it is now cheaper to buy than rent.

Yet some sellers are just not scrambling enough for their own good. They still believe that market conditions are a lot better than they are - this illusion is fuelled by press reports that the central London market is thriving. But this has a great deal to do with foreign buyers moving international currency. In fact, of the twenty most expensive houses sold in the UK recently, only two weren’t sold to foreign buyers – and Bernie Ecclestone bought them both! The result is a super micro-market in London that is out of step with the rest of the country.

For sellers outside London there are some warm property spots. But in the main those anxious to sell for whatever reason should accept that they will only find a buyer quickly through competitive pricing. Location, location, location is no longer enough. Today it is location, location, location, price and presentation that separate the movers from the stayers.

Perhaps sellers should learn from school-leavers who have cancelled their longed-for gap year to avoid higher university costs. Needs must when the devil drives.

So sellers should scramble to get their houses in order and buyers should scramble for a great opportunity. We are all entering a new age with a shifting economic axis and an uncertain future. But what is very certain, despite these difficult times, is that we all need somewhere to live and we always will.

Cheaper to buy than rent for first time buyers

The cost of buying a home for first-time buyers (FTB) is more than £100 a month lower than renting, according to new research by Halifax.

Paul Goverd

The latest Halifax Buying vs. Renting Review tracks changes in the cost of buying and renting a typical two bedroom flat for a first-time buyer across the UK over the last three years. Average buying costs include mortgage payments, income lost by funding a deposit rather than saving and spending on household maintenance and repair and insurance costs. Figures relate to the first year of purchase.

The average monthly costs associated with buying a two bedroom flat in the UK for a first-time buyer totalled £567 in July 2011, 16% (£110) lower than the typical rent paid on the same property type (£677 a month). This is in contrast to 2008 when the average cost of buying was in fact 29% (£212) more than the average rent paid.

Since 2008, the cost associated with getting onto the property ladder has fallen by 40% (£383), five times the 8% (£62) decline in the average rent paid by private tenants. The cost of buying for a FTB has fallen by 2% over the past year whilst average rental costs have risen by 6%.

The decline in buying costs for a FTB has been driven by the fall in mortgage rates and house prices since 2008, according to Halifax. The average mortgage rate for a new borrower stands at 3.84%, a fall of 207 basis points from an average of 5.91% in mid 2008. The average FTB house price has fallen by 14% to £124,378 over the same period.

FTBs put down an average deposit of £27,127 in July 2011, equivalent to 20% of the average property price. This is nonetheless 6% lower than the average of £28,751 in July 2008, revealing a small improvement over the period.

Moreover, although the transaction costs associated with home purchase including stamp duty and legal fees can also add to the overall cost of buying a property, Halifax estimates that 95% of FTBs are currently exempt from paying stamp duty. This is as a consequence of the temporary increase in the threshold for FTBs from £125,000 to £250,000.

Despite the improvement in the affordability of buying relative to renting, figures from the Council of Mortgage Lenders show that there were 84,000 first-time buyers in the first half of 2011, 23% lower than in the same period in 2008. This partly reflects the economic turbulence over the period and the size of the average deposit still required to get onto the property ladder.

Halifax estimates that the cost of buying would be broadly in line with the cost of renting if the current level of Bank Rate rose by 1.5%. In this scenario, monthly buying costs for a UK FTB would stand at £681 - that would be 1% (£4) higher than the average rent paid. However, given the uncertain economic outlook, interest rates are likely to remain very low for sometime yet.

Suren Thiru, housing economist at Halifax, commented: "The recent decline in the cost of buying a property for first-time buyers compared to renting has been substantial and reflects the drop in both mortgage rates and house prices since 2008 as well as a marked increase in the average rent paid over the past year.

"However, while these affordability gains are welcome, conditions in the housing market for those looking to get onto the property ladder remain challenging. Difficulties in raising a deposit and the current economic uncertainty are likely to mean that number of prospective first-time buyers entering the market will remain relatively subdued in the near term."

Paul Goverd, Managing Director at estate agents C J Hole in Southville said: “It has actually been more affordable to buy rather than rent for some time but the tight criteria being applied by lenders coupled with the need for large deposits is holding the sales market back. Over time I expect this situation to ease and a greater number of first time buyers to be able to purchase.”

Tenants bracing themselves for higher rents

Tenants are anticipating further rent rises, with one in six expecting rents to go up by more than 10% over the next 12 months according to Rightmove

Tenants are anticipating further rent rises, with one in six expecting rents to go up by more than 10% over the next 12 months.

A new Rightmove survey found that over half (53%) of all tenants expect rents to rise, including 17% that predict rents will be more than 10% higher.Both figures are the highest Rightmove has recorded in the last two years of its regular consumer surveys.

Tenants’ sentiment is also changing. In Rightmove’s last survey, half of tenants (50%) were forecasting rental price stability in Q3, but now just a third hold this view (35%).

Rightmove director Miles Shipside said: “Tenants’ pain is a landlord’s gain.”

He added: “In spite of the rising rent environment of the last two years, the majority of tenants still expect to pay even more a year from now.

“The rental ceiling of what some tenants can afford to pay appears to have some headroom left, despite their disposable incomes being squeezed from all sides.

“But there are consequences to an over-inflated rental bubble. Overstretching tenants’ finances beyond what they can sustainably afford will lead to a damaging growth in arrears and void periods.

”The survey also found that while 14% of investor landlords are expecting to buy in the next year, this is only just up on the 11% recorded a year ago – indicating an ongoing lack of rental supply.A total of 5,356 responses were received to the survey.

Paul Goverd, Managing Director at sales and lettings agent, C J Hole in Southville said: “The market is driven by supply and demand and, for the foreseeable future there will be an excess of demand over supply and therefore rents will continue to rise.

Whilst we will always seek to obtain the best rent for a landlord client, we also look to ensure that the quality of the tenant is of the highest order. There are stories from around the country of increasing cases of rental arrears and the need for thorough referencing and credit checks is paramount.

Most of our landlords at renewal are seeking a modest increase in rent, preferring to keep a good tenant rather than face the uncertainty of losing a tenant and the possible risk of a void period by being too ambitious on a rental figure.”

Surge in housing benefit tenants renting privately

The latest RICS quarterly rental survey, covering the quarter to the end of July, says that 13% of all new lets were to housing benefit tenants.

The statistic is up from 8% the previous quarter and is the highest since the RICS began its surveys in 1999.Overall, new tenant demand again outpaced supply of rental property in the three months to July, as more people continued to turn to the lettings sector.

As a result of this, rents continued to increase, although the survey indicates that the pace of growth moderated slightly.However, the imbalance between demand and supply is likely to persist, suggesting that further gains in rents are likely over the coming months.

The number of new landlords continue to edge upwards, albeit only modestly.

Surveyors report that where tenancies are coming up for renewal, some landlords – particularly those in London and the South-East – are now choosing to put their properties on the sales market, leaving fewer rental properties available.

RICS spokesman James Scott-Lee said: “The combination of strong tenant demand and a limited stock of good quality properties on offer is pushing rents ever higher across much of the country. This is the case both for houses and flats.

“Moreover, with mortgage finance for first-time buyers likely to remain in short supply for some time to come, this imbalance is set to persist.“The inevitable outcome is that rents will continue to increase.”

Paul Goverd, Managing Director at C J Hole at Southville said: “Quite simply, market values are determined by supply and demand and for the foreseeable future, demand is going to outstrip supply in the private rented sector.

We do however stress the need for landlords to look at the quality of tenant as well as the rental figure as security and longevity are important factors in maintaining and growing strong investment value."

Economy a concern but landlords confident about Private Rented Sector

Landlord optimism is at its highest point for almost four years, according to the National Landlords Association (NLA) in its latest Landlord Optimism Index.

A majority (65%) of landlords rated prospects for their own lettings business over the next three months as very good or good.

Landlords are also increasingly optimistic about the overall state of the private rented sector, with 54% seeing the industry’s prospects as “good or very good”, an increase of 8% compared with the NLA’s findings during the second quarter of 2010.

However, the 600 landlords questioned are less certain about the state of the UK economy, with only 6% rating this positively, compared with 9% at the same time last year.

David Salusbury, NLA chairman, said: “After a challenging few years, it is encouraging to hear that the majority of landlords are feeling positive about their lettings business and the overall state of the private rented sector.

“The increasing availability of buy-to-let mortgages and strong demand for rental accommodation is further stimulating positive sentiments, with rent arrears appearing to stabilise and void periods decreasing in recent months.

“The private rented sector is demonstrating its resilience, in marked contrast to some other industries and investments.

“Like other business people, it is clear that landlords are not immune from the effects of financial uncertainty. The fragile state of the economy is a concern for landlords, many of whom have mortgages to pay or rely on their property portfolios to earn a living.”

Paul Goverd, Managing Director of C J Hole at Southville added: ”There is no doubt that confidence is strong amongst our landlord clients but I would continue to stress the need for vigilant referencing of tenants and ongoing, proactive management of properties in order to both minimise issues and maximise value.”

School catchment areas crucial for homebuyers

Moving into the catchment area of a good school is becoming an increasingly important issue for homebuyers, according to new research from Santander Mortgages.

The findings reveal that for more than one in three (37%) with a child aged 10 or under, this was their top priority with many willing to pay an extra £12,141 to secure the home - and school - of their choice.

The Santander study reveals that people planning a move would be willing to pay an extra £5,663 on average to be able to move into a good catchment area.

Of those who plan to buy a new home in the next five years, 15% say school catchment areas is one of their main priorities with many homebuyers willing to pay a much higher premium. One in four (26%) of those with a child aged 11 to 17 see it as a major concern, and would be willing to pay a £11,564 premium for the privilege.

And the results differ across regions where places for schools can be more competitive. In the South East of England, for example, people would be willing to pay an extra £10,961 for a home in the catchment area of a good educational establishment.

Homebuyers in the West Midlands are most concerned about moving into a good catchment area, with one in four of them (26%) citing it as a main priority, double the percentage that was concerned about this the last time they bought a home (13%). In the North East only 6% of buyers showed a particular interest in the catchment area the last time they purchased a home, but some 16% of people planning to buy a property in the region now consider it a main priority.

The research suggests that women are much more concerned about moving into a good catchment area than men and are willing to pay a £7,281 premium in comparison to £4,456 for men.

Phil Cliff, director of Santander Mortgages, commented: "People are increasingly concerned about the value of a good education, and in some areas of the country, there is a significant amount of competition for places at sought-after schools. This has led to many parents trying to move to a particular area deliberately to improve their child's chances of getting into their desired school.

"Some in-demand property features such as being located within the catchment area of a good school can increase the property value considerably, so it is important that prospective buyers get the best mortgage product for them in the long term."

Paul Goverd, Managing Director at estate agents C J Hole in Southville said: “Access to good schooling has always been high up the agenda for family homebuyers and together with good transport links to places of work, are key factors alongside accommodation and price.”

House sale volumes fall back as mortgage lending slips

Gross mortgage lending in July dropped to an estimated £12.6bn, and housing transactions also fell.

According to the Council of Mortgage Lenders, the total was 1% lower than June’s £12.68bn and a 6% fall from £13.3bn in July 2010.

Meanwhile, the National Association of Estate Agents said its members reported a reduction in house sales from nine to seven per branch.

The CML said house prices were flat and activity levels disappointing. House sales of 204,000 in the second quarter of the year were the weakest for two years, with mortgage lending reflecting the trend: lending for house purchase is trailing below last year’s levels, while remortgaging levels are trending above.

The CML also noted a strong pick-up in buy-to-let lending, although much of the increase is in remortgaging, with lending to landlords for property purchase very subdued compared with a few years ago.

CML chief economist Bob Pannell said: “UK economic prospects have deteriorated as a result of weaknesses in some of the major economies and renewed stresses in the eurozone area associated with the sustainability of government finances.“

"As a result, UK interest rates look like staying lower for longer."

“Housing market conditions remain subdued, but pretty stable. Seasonal factors continue to provide some support, but underlying house purchase activity may drift lower over the coming months.”

Richard Sexton, director of e.surv chartered surveyors, a firm which carries out a lot of valuation work, said: “July’s subdued figures confirm that June was just a fleeting uptick. The banks are handcuffed by weak economic growth and concerns over their capital liquidity.“

"They have pushed out well-publicised high loan to value (LTV) products over the summer, but appearances can be deceptive. In practice, lenders are being forced to target low LTV borrowers: less than 10% of approvals in July were for those needing high LTVs.“

"There is a discernible gulf between interest rates on low LTV deals, which are tantalisingly cheap, and the more restrictive rates on deals at 90% LTV and above.“As a result, great swathes of lower income buyers are marooned in the rental market, while the lowest rung of the property ladder hovers just out of their reach.”

Paul Goverd, Managing Director at C J Hole in Southville said: “There is no doubt that the overall housing market across the UK is running at low volumes and that there is downward pressure on prices due to lower demand and the lack of availability of high LTV mortgages which has particularly hit the first time buyer market.

However, the market is patchy and, whilst we are not ring fenced from the rest of the UK, there is no doubt that here in Bristol, the market is generally stronger and demand, whilst not excessive, is steady.”

Property at most affordable in 8 years

The proportion of towns and cities across the UK that are affordable for first-time buyers has risen to its highest level since 2003, Halifax has claimed.

Halifax research showed the average house price paid by a first-time buyer in June 2011 was affordable for someone on average earnings in 48% of all local authority districts (LADs).

This is the highest proportion of housing affordable for first-time buyers in eight years and compares with 40% in 2010 and just 6% in 2007.

Some 80% of all LADs in the North of the UK are affordable for first-time buyers - 10 times the proportion of affordable areas in the South (8%)

The North East is the only UK region where all local authority districts are affordable for first-time buyers.

In contrast, London is the only region with no affordable areas for first-time buyers on average earnings.

Despite the improvement in affordability, the number of first-time buyers has decreased slightly over the past year in line with the market.

Halifax estimates that there were around 86,000 first-time buyers in the first half of 2011, a fall of 10% from the same period in 2010 and close to half the number in the first six months of 2007 (181,500).

First-time buyers put down an average deposit of £27,719 in the first half of 2011, equivalent to 21% of the property price.

There are signs that more products for buyers with smaller deposits are being made available.

This is partly reflected in an 8% fall in the average deposit from £30,251 since the same period in 2010.

Halifax also referred to research showing many potential first-time buyers have given up on the possibility of getting on the housing ladder.

Some 77% of non-homeowners still aspire to own their own home, but half (46%) believe that Britain is becoming a nation of renters because of the obstacles facing first-time buyers

Meanwhile 55% believe first-time buyers are too scared of being turned down to apply, despite the fact that Halifax said it accepts eight out of 10 mortgage applications from first-time buyers.

Suren Thiru, housing economist at Halifax, said: "It is encouraging that housing affordability for first-time buyers in general has improved significantly over recent years, as a consequence of the marked falls in both house prices and interest rates since 2007.

“However, there is a distinct North-South divide within this improvement as the majority of affordable areas are in the North."

Stephen Noakes, commercial director of Halifax mortgages, said: "The significant challenges in raising a deposit and widespread pessimism about the chances of being accepted for a mortgage are clearly preventing some potential first-time buyers from even attempting to get on the ladder.

“However there are opportunities for those who do want to own their first home. The key is to provide more information, more education, and more help for non-homeowners in order for them to make the most of those opportunities.”

Halifax said it will be rolling out a spate of new initiatives over the coming months in order to better inform and support first-time buyers who want to get on the ladder, but who are afraid of doing so.

Paul Goverd, Managing Director at C J Hole in Southville added: “Property prices outside of London and the South East are largely stagnant and this means average salaries – which are growing by 2.3% annually – are giving buyers more bang for their buck.

“Add to this the effect of ultra-low interest rates on the cost of mortgage finance and the effect is a significant rise in the affordability of homes.

“In regions where prices have fallen since the beginning of the year, transactions are beginning to pick up, suggesting that many buyers have decided to take advantage of the opportunity to get on the property ladder relatively cheaply.”

Landlords vulnerable to rate rises

Private landlords will be negatively impacted by a rise in buy-to-let interest rates reveals the National Landlords Association.

An interest rate rise of 2% would have a negative impact on 89% of landlords, with 53% concluding that the effect would be significant in a survey by the NLA.

A further 8% would be forced to re-evaluate their future as a landlord, with 6% having to reduce their portfolios or leave the private-rented sector completely.

Some 662 landlords participated in the survey.

Almost three quarters of those landlords have at least one mortgage, and of those 47% have at least five BTL mortgages held against their property portfolio.

Under one half of landlords, 49% strongly agree that the market would further benefit from more Buy-to-letlenders and greater competition.

David Salusbury, chairman at the NLA, said: “These statistics show how important it is for a landlord expanding their portfolio to construct a sound long-term business plan when considering buy-to-let properties.

“The NLA believes that such properties can be a worthwhile investment and can help ease the current housing crisis by providing a source of much needed housing, but landlords should ensure that they plan for the future and are mindful of any potential increases in BTL interest rates.”

Becky Holland,, Lettings Manger at C J Hole in Southville said: “This survey really only states a combination of the obvious i.e. if interest rates go up it will adversely affect landlords who are borrowing and also that landlords need to have a sensible plan in respect of their portfolios that balances their gearing with the realities of the marketplace.

By talking to an experienced lettings agent such as ourselves, we would seek to work with landlords to maximise the return on their investment.”

Pickles: Councils should publish property registers

The government has said public sector organisations could save up to £35bn over ten years through better property management if they publish registers of all buildings and land owned.

Communities and Local Government secretary Eric Pickles said he wants councils and public sector organisations to publish the information which will help protect frontline services.

Public sector assets are worth an estimated £385bn, with almost two thirds owned by councils. And a recent independent report found local government and the public sector could save up to £7bn a year in operational costs through better property management.

Annual running costs top £25bn and the backlog of maintenance repairs has been estimated to be around £40bn.

Pickles said he wanted local people to be able to use the lists alongside the Localism Bill’s new community rights to protect local treasures.

He believes the public have a right to see the scale and variety of public sector asset wealth.

A “demo” map was published and located over 180,000 assets owned by almost 600 public sector bodies, including central government and 87 councils.

Pickles said: "We need to know, now more than ever exactly what assets are publicly owned. The general public probably have no idea of the sheer scale and scope of property and land on the public sector's books. In many cases it goes way beyond traditional frontline services.

“I want the public sector to take a good hard look at what they own. By cataloguing each and every asset councils can help Government find innovative new ways to utilise them, improve local services, and keep council running costs down and save taxpayers' money.

“This asset information also holds huge potential for local communities, offering an at a glance way to find that new meeting place or rescue the derelict tennis court round the corner."

Paul Goverd, Managing Director of C J Hole in Southville said: “This proposal may help create greater accountability and start to free up land and other property assets for better use, redevelopment or sale. It will be interesting to see what opportunities it brings.”

CBI forecasts growth

Latest economic forecast from the CBI forecasts growth albeit at sluggish levels

The UK economy will continue to grow, but at a sluggish rate, in 2011 and pick up modestly in 2012, according to the CBI's latest economic forecast.

Despite the squeeze on household incomes from higher commodity prices and an erosion of business confidence, the CBI still expects the economy to grow by 1.3% this year, compared to 1.7% forecast in May. GDP growth of 2.2% is expected in 2012, unchanged from May's forecast.

Positive net trade contributions this year and next are expected to help boost the UK economy, as export growth picks up, reflecting the competitive level of sterling, and imports are more muted because of subdued domestic demand. Exports growth of 7.7% is expected in 2011 and 6.9% in 2012.

Although many firms are well placed to increase investment spending due to the substantial cash surplus in the corporate sector, the CBI is warning that investor confidence has been eroded due to Eurozone instability and US debt issues. Only relatively modest investment growth of 3.7% is expected in 2011, but this is likely to pick up in 2012 to match historically strong levels (9.3%).

Commenting, John Cridland, CBI director-general, said: "The economic outlook has become even more challenging but we still expect the economy to continue to grow modestly this year and next.

"The global economy has slowed in the face of several shocks including the Japanese tsunami and soaring commodity prices.

"These factors have combined with political uncertainties around the Eurozone sovereign debt crisis, the wrangling in Congress over the US debt ceiling and the policy tightening in China, to erode confidence and soften activity.

"It may be a lacklustre recovery, but with solid net trade contributions and the positive impact of business investment, the UK will remain on a growth track."

The economy only expanded slowly in the second quarter, by 0.2%, but this is largely explained by special factors such as the reduced number of working days in April and serious supply chain disruptions following the Japanese tsunami. Quarter-on-quarter growth is expected to rebound to 0.8% in the third quarter and the economy will grow at a consistently modest rate of around 0.5% to 0.6% until the end of 2012.

Inflation is expected to be higher in the autumn and into next year than previously forecast, mainly as a result of increases in utility prices due to take effect later this year. But as the impact of the VAT rise falls away, inflation is set to moderate during 2012 and fall back closer to the Bank of England's 2.0% rate towards the end of next year.

The Bank is now expected to keep interest rates on hold until the first quarter of 2012 pending compelling evidence of a marked and sustained pickup in the economy. The CBI said modest interest rate rises of 0.25% are expected to begin in Q1 2012 through to Q4 taking the Bank rate to 1.5% by the end of the year.

Ian McCafferty, CBI chief economic adviser, said: "Economic conditions will be very tough for the rest of this year as household budgets continue to be squeezed by a combination of inflation and weak wage growth. But conditions will be a little brighter in 2012 as inflation eases back and take home pay improves.

"We don't expect the Bank to adjust interest rates until there are clear signs of a marked and sustained pickup in economic activity. This adjustment is now likely to come later than previously expected, in the first quarter of 2012."

Paul Goverd, Managing Director of C J Hole at Southville said: “Whilst this forecast is unremarkable and indicates that the UK will be undertaking a long steep road to full economic recovery, it does contain a number of positives. Firstly it indicates sustained growth, albeit at low levels, and secondly it restates the likelihood of a longer period of low interest rates in order to assist recovery and help debt reduction.”

Fully Managed Service versus Let Only Service...

Why Use an Agent when you can Do It Yourself?...

Many Buy to Let Landlords assume that there is a significant cost saving to be made by opting for a Let Only Service.

In actual fact, and depending upon the term of the let, there can be as little as 82p per day difference between the Let only & the Fully Managed service.

Here are 10 good reasons why it might be wise to reconsider your options & elect to go Fully Managed....

1 We take care of your rent collection and we monitor and chase any outstanding rental arrears.

2 As a Fully Managed Landlord, you get free membership of our Deposit Protection Scheme with no annual fee.

3 Deposit negotiation at the end of the tenancy is included as part of the service.

4 We provide a HomeLet rent guarantee for the first six months of your tenancy.

5 Our Property Manager arranges property repairs through trusted contractors with whom we have enjoyed long-standing relationships.

6 We conduct regular property inspections & give advice on repairs & maintenance to help your property to hold its value.

7 Our Property Manager provides a personalised service so that your property maintenance is tailored to your wishes.

8 We conduct 'Check-Ins' and 'Check-Outs' as part of the service.

9 Any delicate negotiations between Landlord & Tenant can be conducted through our professional negotiators acting as a 'third party'.

10 Lettings legislation can be complicated. Our Lettings Staff are ARLA qualified and they use their expertise to keep landlords advised of changing legislation.

All of which means that as a C J Hole Fully Managed Landlord, you have more spare time to put to better use!

For more information on our Fully Managed Service, contact our Lettings Team on 01242 255488

Survey shows owner-occupation down by 4 per cent in four years

The English Housing Survey Housing Stock Report 2009, (published 5 July 2011), shows that owner-occupation fell from 14.8 million (71 per cent) in 2005 to 14.5 million (67 per cent) in 2009-10.

Published by the Department for Communities and Local Government (CLG), the survey shows that out of the 21.6 million households in England in 2009-10, a further 17 per centwere social housing renters, and 16 per cent were private renters.

The average weekly rent in 2009-10 was £156 for private renters, compared with £75 for social renters.

A third (33 per cent)of private renters had lived in their home for less than a year, compared to 2 per cent of owner-occupiers and 8 per centof social renters.

An estimated 630,000 households (2.9 per cent) were overcrowded, with over a third of these households (237,000) living in London (7.8 per cent of London households). Some 7.9 million households (37 per cent of all) were under-occupying their accommodation.

Only 4 per cent of owner occupiers were recent first time buyers (bought within the previous three years), with the majority of these (61 per cent) being aged between 25 and 34.

Over two-thirds (68 per cent) of new households formed in 2008-09 and 2009-10

Energy efficiency of housing stock

The survey also found that 8.8 million (38 per cent) of the 22.3 million dwellings in England in 2009 were built before 1945, and 4.8 million (21 per cent) before 1919.

The energy efficiency (SAP) rating of the housing stock steadily improved from a mean of 42 SAP points in 1996 to 53 in 2009. Improvement was particularly marked in local authority and private rented housing.

However, in 2009 there were still 3.3 million dwellings in the lowest Energy Efficiency Rating Bands F and G.

If cost effective energy improvements (averaging around £1,400 per dwelling) were carried out to all 19.3 million properties that would benefit from them, the average SAP rating would increase from 53 to 63 and the average CO2 emissions per dwelling could be reduced from 6.0 to 4.6 tonnes/year.

There has only been a modest improvement in the proportion of the stock with problems of damp (from 10 per cent to 8 per cent), primarily because the incidence of serious condensation and mould (one cause of damp) has not changed from 4 per cent of all dwellings.

Electrical safety has improved significantly since 2001 - especially for rented dwellings in both the private and social sectors.

There has been a significant reduction in the amount of disrepair since 2001 - particularly in private rented housing although this sector still had on average much higher average repair costs than other tenures in 2009.

Paul Goverd, Managing Director at sales and lettings agents C J Hole in Southville said: “Whilst the data in this report is historic it does clearly indicate a trend away from owner occupation towards the private rental sector.

The reasons for this are many and various but include a restricted lending environment that has made it harder for people to get onto or sty on the home ownership ladder. This has created a growing number of “reluctant” tenants and “reluctant” landlords. This trend is likely to continue in the immediate future until the general economic picture improves.

Of course, property in the private rental sector is, by definition, owned by a private landlord and so there remains an active, albeit subdued, sales market alongside a buoyant rental one.”

Average Buy To Let mortgage rates drop

The average chosen buy-to-let rate for both fixed and tracker mortgages has fallen in the second quarter 0.18% from the first quarter reveals TBMC’s Landlord Profile Tracking Index.

The research sourced from 754 buy to let applications, revealed the average chosen fixed-rate was 4.82% during the second quarter of 2011, down 0.18% from 5.00% during the first three months of this year.

The average chosen tracker rate was 4.02% during the second quarter of 2011, down 0.18% from 4.20% during the first three months of the year.

Andy Young, chief executive at TBMC, said: “The index shows that average rates fell during the second quarter of this year, following the rise in the previous quarter. This reflects the weight of opinion in the City that any rise in the Bank of England base rate is likely to happen much later in the year than previously expected, and perhaps not until 2012.

“The expectations of the City regarding interest rate rises are mirrored by the product choice of buy-to-let property investors during Q2, with variable rate products accounting for 59% of applications received by TBMC compared with 41% for fixed rates.

“Variable rates are also popular amongst landlords as they often present the most achievable rental calculations in the marketplace.”

Paul Goverd, Managing Director at C J Hole in Southville said: “We have seen greater competition between lenders in the mortgage market in recent months resulting in more attractive deals for borrowers. This is true in both the homeowner and buy to let market and shows the need for anyone considering taking a mortgage or re-mortgaging to take professional advice.

At C J Hole our team of highly trained mortgage professionals will be pleased to discuss your requirements in complete confidence.”

Rocketing Demand For Rentals!

Know Your Friends......

One expert says that house prices will rise next year and then continue to do so for some years to come. Another says that house prices are 30% overvalued and will fall. Meanwhile prices are soaring in central London, are stable in other places and still losing ground in a few more. But should we care so much about what is going on in general across the UK? And how useful are their comments in helping to keep the wheels of the property market turning? Jeremy Prosser of C J Hole looks at just who your friends are when it comes to selling property.

Certainly I don’t think we need to heed these market pundits too much when they are commenting on such a broad basis. What I am fairly certain of is that many of these people often don’t fully understand what is happening in Cheltenham right now. There is a big difference between the media experts who talk about the market and the estate agents who actually have to deal with it. It is easy for the media to make grand over-arching pronouncements and predictions but estate agents have to move people whatever the market conditions.

Estate agents know how to do this because they are dealing with these matters every day. We understand how national, regional and even local financial issues affect our own local market and we work constantly to find ways of dealing with these conditions - whatever they may be.

Prior to 2007, when the market was storming away, it was much easier for owners and estate agents to sell property – of course it was. But now it is not. Yet despite this there is an active market bubbling under the surface. There are always buyers about whatever the market. It is just that now there aren’t so many of them they can afford to be choosy and are often in no rush - all most frustrating and difficult for sellers.

But well-located property, in good order and at a sensible market price, will find a buyer – it always does. The skill here is in getting the best price. For other property, perhaps where the years haven’t been so kind, which is less pleasing on the eye or not in quite such a sought-after location, things get a little more tricky - but far from impossible.

Personal circumstances do not dance to the tune of the property market. It is when the chips are down and one really has to sell and move on - even in an adverse market - that sellers find out who their real friends are. A market commentator in those circumstances won’t be a lot of use. On the other hand an effective estate agent could - surprise, surprise - become a very good friend indeed.

Number of mortgage products increase again

The number of mortgage products available to UK mortgage intermediaries has increased for the seventh month in a row.

This is according to figures released from Mortgage Brain’s Monthly Product Analysis.

A 4% increase in product availability during June has taken the total number of live mortgage products listed on its sourcing system to their highest level since 28th April, 2008.

Current figures, as of 4th July, 2011, now list 12,525 mortgage products – up from 11,996 on 30th May 2011.

Positive movement was seen across the board for all main product types with variable rate products witnessing the biggest rise (21%) in product numbers to now represent 1,500 of all available mortgages.

A 6% increase (180 new products) during June saw the number of trackers climb for the third month in a row with current figures (as of 4th July, 2011) now standing at 3,237.

A fourth consecutive monthly increase (1%) has seen the total number of fixed rate products rise to their highest level since August 2008 and now represent 7,788 of all available mortgage products.

Over 4,000 new fixed rate products have been introduced to the UK intermediary mortgage market over the past 12 months further cementing them as the market’s most popular and dominant product type.

Mark Lofthouse, CEO of Mortgage Brain, commented, “Further encouraging data has been extracted from this month’s product analysis, which is great news for brokers and the mortgage market as a whole.

“Around 4,500 new products have become available during the past seven months alone and healthy increases across the board has seen the number of fixed, variable and trackers climb to their highest level since the summer of 2008.”

Paul Goverd, Managing Director of CJ Hole estate agents in Southville said: “The growing number of mortgage schemes available demonstrates two things. One, that there is a growing confidence amongst lenders and with increasing competition that is good news for the consumer. Two, consumers need to seek out professional advice to ensure they are getting the best deal for the, At CJ Hole our mortgage advisers will be happy to discuss requirements in complete confidence.”

Trading Places

The government’s proposing to empower local authorities to evict council house tenants who earn in excess of £100,000, but what does it mean for the private-rented sector? Lorna Blackwood of the Negotiator magazine investigates.

The government’s announcement earlier this month that it proposes to empower local authorities to evict council property tenants earning in excess of £100,000 will be a much-needed boost to nervous buy-to-let investors. Since a cap on Local Housing Allowance was introduced in April, private landlords with social tenants have been concerned about rent arrears.

Private landlords have played an increasingly important role in providing accommodation to housing benefit recipients in the UK, but a number are now reducing the number of properties they let to benefit recipients because, they claim, they cannot afford to reduce their rents to absorb reductions in housing benefit. Will an injection of cash-rich council evictees to the private rental sector help fill the gap and boost letting agency profits in the process?

The government believes there are 6,000 people earning upwards of £100,000 but still living in council properties. With council house waiting lists topping two million, the plan is to evict these tenants, giving those most in need a home.

Reaction

The announcement has received a mixed reaction from agents. Many applaud the idea, accepting that social housing is a scarce resource, which should be a priority for those who really need it. John Taylor, chief executive officer at Middlesex-based Orchard & Shipman, welcomes the news, but is unclear how local authorities will evict tenants. “Judging need is always problematic. However, the focus of attention should be on the issue of the depleted stock of social housing. Councils need to decide who is provided access to available homes; this is a decision that requires local consideration as to what is best for their community.”

Like Taylor, many professionals are concerned with the bureaucracy of implementing the new legislation. At a time when local authorities are facing deep budget cuts, it is unclear where the resources to police such a scheme will come from. One agent described the situation as a “bureaucratic nightmare.”

Paul Weller, managing director of Sussex-based lettings firm, Leaders, agrees. However, he embraces the end of council homes for life. “Entitlement to a council house should be based on need and circumstances, which could change over a person’s lifetime. A council home for life is an antiquated approach and unsustainable in the modern world.”

Lack of stock

But even if tenants can be successfully evicted, a fundamental problem remains within the private rental sector - a shortage of quality stock. According to the latest figures from the Royal Institution of Chartered Surveyors, most regions across the UK are facing an imbalance between supply and demand.

Then there’s the issue of affordability. Soaring inflation and the rocketing cost of living, combined with the difficulty in obtaining a mortgage is increasing dependency on the private rented sector, which has in turn pushed rents even higher.

London has seen the largest increases, a situation which is expected to worsen. There are real concerns for young renters in the capital, for example, where there is the largest disparity between market rents and council rents and a greater shortage of affordable housing. RICS’ survey revealed that rents in some areas of London have risen so sharply that previously affordable homes are now unattainable for many.

However, new figures out from West London-based Douglas & Gordon suggest that rising rents are not deterring prospective tenants. In fact, the agency reports a growing appetite for rental property in the capital, with numbers of people applying to rent soaring by 50% from April to May. This is creating multiple bids on properties and helping the best rental accommodation to achieve in excess of the asking rental price. Eager tenants are securing the sought-after properties by offering longer tenancies, larger deposits or paying for six months or more upfront.

But it’s not just London. John Hards, co-managing director of Countrywide Residential Lettings, confirms there is still a high level of demand for rental properties across the country. He says, “Our research in the first quarter of the year uncovered that on average, there are five tenants vying for each available rental property in the private sector, so the market remains buoyant for landlords and investors.”

Other agents would also like to see more available property across their branches, as many of them have less now than they’ve had historically. This is accentuated more in certain geographical pockets.

Solution

Some agents are looking to changes in the economy to correct the rental market. Ian Wilson, managing director of national lettings franchise Martin & Co, believes interest rates will start to rise next year and quickly. “Currently, there are a lot of properties left empty, where owner occupiers are on very low mortgage payments, so can afford to pay them without having to rent out the property. But with rates rising quickly, this will bring reluctant landlords back into the letting market, forced to rent out properties.”

But many agents are worried that the quantity of legislation landlords have to comply with is deterring some would-be investors. One bugbear for Weller is the new Houses in Multiple Occupation planning laws. “Landlords now have to apply for planning consent from their local authority to let a property as an HMO. This will lead to landlords avoiding letting properties to sharers and therefore reducing the amount of housing stock available to people who can’t afford a place on their own.”

Financing also needs to be addressed. Lenders need to make more reasonable-priced finance available to landlords. Many potential investors are being put off the private rented sector by the cost of borrowing, and some are choosing to invest in just one property with cash, rather than several properties using finance. It is no surprise that 48% of landlords who bought property in the past year were cash buyers. Investors are not willing to expand portfolios when buy-to-let mortgages include prohibitive upfront fees. This is not helping the supply shortage.

With such expensive lending criteria, lenders also need to be made more accountable when they repossess rented properties. In this situation, Weller would like to see lenders keep properties occupied where possible. “Properties have been gradually emptied of their tenants, so that the bank has vacant possession and then sit empty while they wait for the best time to sell them. This means there are hundreds of properties sitting empty that could be rented out and hundreds of people losing their rented homes through no fault of their own. This is an issue that needs to be addressed.”

But others feel it will need government intervention to tackle the housing supply crisis. Taylor believes that the government needs to ensure access is provided to well-managed homes in the private rental sector, something that has long since been an issue in the UK. “In order to bring more stock to the rental market, there must be a more strategic approach taken to pursuing new investment in new build and bringing existing stock into beneficial use. I am interested to know the government’s response to working with partners to encourage institutional investment in providing homes at varying rent levels to ensure those looking to rent property can access it.”

This article originally appeared in the Negotiator magazine.

CJ HOLE DONATE £500 TOWARDS LOCAL SCHOOL FUNDRAISING

CJ Hole Property Centre, Bradley Stoke, recently ran a competition to celebrate the opening of their new premises in Willow Brook Centre. Having had huge success with their previous office in the Willow Brook Centre it was clear that they needed to expand and employ more staff to cope with the demands in the local areas.

The competition ran for a month and keys were distributed to over 500 homes in the area. One of the keys would open the box containing £500 to the lucky Home Owner. Unfortunately no-one claimed the prize – however this was to the benefit of the children at Wheatfield School!

On Saturday 26th March the school launched a new 1 year project to help improve the local environment and enhance the area for wildlife. The project has received a grant of £9,450 from the Big Lottery Fund and £2,500 from the ‘Friends of Wheatfield School’.

“Building on our Outdoor Play and Learning Project, our school aims to embark on an exciting journey which will engage pupils, parents and our local community in a range of innovative projects that will see our local environment improved, benefiting wildlife and people’s well being”; commented Chris Dursley , Headteacher of Wheatfield Primary School. She added, “Starting with a launch event, we will invite local residents to come along and join our year long project, allowing us a unique opportunity to open the doors of our school to local residents to share in planned activities throughout the four seasons!”

This scheme will see the school work with a local conservation group to improve two local ponds, create new benches from carved timber and develop a mini nature trail. There will be activities throughout the year for the school and its wider community to participate in, including a special Apple Day event in October.

In addition to these works The Friends of Wheatfield School have continued to raise money to enable them to purchase a Play Pod. A Play Pod is a large store of ‘loose parts’ - – objects that children of all ages can use in creative play. A Playpod can encourage team building, co-operation, communication, sharing, negotiation and problem solving.

When the school talked to the children last year about play times they put forward several suggestions for how to improve play - more things to play with, to be able to play in all the school grounds all year, to play with friends in different playgrounds and they wanted exciting and challenging things to do!

CJ Hole presented the cheque for £500 to the school 17thJune with The Friends of Wheatfield School towards their fund raising for the Play Pod.

Hopefully you will agree that a Playpod at Wheatfield is of great benefit to the children. If you wish to support the school and help raise the £15,000 needed to provide one please contact the school on 01454 868610.

Distance to work most important factor

The distance between a homebuyer’s new home and their workplace is the biggest priority when it comes to buying a property, according to new research from Santander Mortgages.

Brits would pay an average of over £5,000 to live closer to work, and a third of those surveyed said it was the number one factor.

Second most important was the amount of living space available for their budget, with good transport links, parking access and south-facing gardens all highlighted as being key in the decision-making process.

Families with children also want to ensure they are in a catchment area for a good school.

Phil Cliff, director of Santander Mortgages, commented: “It’s fascinating to see the value that prospective buyers attach to different property features, and how these evolve as people get older and family situations change. Some of the most in-demand privileges, however, such as close proximity to the city or good schools, come with an expensive price tag. It’s therefore important that people speak to experts to ensure that their expectations are realistic and so that they get a good understanding of what they can and can’t afford.”

Paul Goverd, Managing Director of C J Hole in Southville said: “None of the findings in this survey will come as a surprise to anyone who operates within the property market. The old adage of location, location, location being key is as true today as it ever was. Clearly people’s work-life balance and the increasing costs of commuting are key elements when it comes to choosing the location in which to buy or rent.”

Terraced houses more likely to be repossessed

Terraces are set to account for four out of ten repossessions across the UK during 2011, according to HML following its analysis of 320,000 live mortgage accounts.

HML has forecast UK repossessions geographically and by property type. London is expected to have a higher than average proportion of repossessions this year (0.34% of all mortgaged properties) and of those properties seized by lenders a higher percentage than anywhere else in the UK will be flats (52% against an average of 24%) and a lower percentage will be detached homes (4% against 15%).

Northern Ireland is forecast to experience the worst overall rate of repossessions in the UK (0.83%). Proportionally, more semis will be repossessed than the national average (27% against 21%) and detached homes (20% against 15%).

In the South West, where the risk of repossession is lower than anywhere else in the country (0.18%), a higher proportion of detached homes will be repossessed than average (21% against 15%) and a lower proportion of terraced homes will be taken into possession by lenders (35% against 40%).

Commenting, HML’s chief commercial and finance officer, Neil Warman said: “Our forecast shows terraces and flats across the UK are generally more at risk of repossession than detached and semi-detached homes.

“This trend isn’t new; terraces and flats tend to be the property of choice for first-time buyers and lenders understand granting mortgages to people who haven’t had one before is riskier than lending to someone with an established track record.

“However, all borrowers have to contend with the rising cost of living, employment uncertainty, stagnant wages and the fall-out from the largest cuts to Government spending for more than a generation.

“There is already evidence these factors are starting to impact on homeowners, as there has been a moderate increase in the number of borrowers whose arrears represent more than 10% of the value of their mortgage. This is likely to feed through into higher repossessions next year, when we are forecasting an overall figure of between 35,000 and 40,000 repossessions.”

Paul Goverd, Managing Director of C J Hole in Southville said: “It is widely forecast for the levels of repossessions to increase slightly in the months ahead as the effects of the Government’s austerity measures take hold. It should however be noted that the numbers, whilst representing terrible situations for the individuals involved, remain low in comparison relative to the size of the market.

As has been stated by HML, it is likely that property in the lower prices ranges will represent a higher proportion of property that gets repossessed simply because these tend to be the properties that are purchased by those with less equity and who are highly geared.”

Average age of a first time buyer set to become 41!

The average age of a first-time buyer will be 41 years by the year 2025, up from today’s average age of 38.

The results from LV='s Delayed Lifestyle report show a big leap from the 1980s when people bought their first house at 29 years old.

With the majority taking a mortgage for a term of 25 years or more, this delay is likely to have a significant impact on people being able to pay their mortgage off before reaching retirement.

In fact, according to the report, Britain suffers from ‘Peter Pan' syndrome as 16 million people say they have delayed at least one major life step including marriage, having a baby or buying a home.

The report shows the average age for tying the knot for the first time is now 32 years for men and 30 years for women. This looks set to increase to 35 years for men and 34 for women by 2025 and has risen steadily since 1970 - when, on average, men got married at 24 and women at 22. Meanwhile, Britons have also put off starting a family - the average age of first time mothers is currently 28 years, increasing from 24 in 1970. This looks set to rise to 29 years by 2025.

Along with not being ready to settle down, high costs is the most common reason for people holding back on starting these life events. The research reveals 14.7 million people (30%) say they cannot afford to get married, have a child or buy a house.

Nearly half of those in their 20s and 30s (47%) say they cannot afford to buy a house on their current salary. In addition to this, among those who have not yet bought a property, 46% say they have been unable to because they cannot afford the deposit and 16% were unable to get a mortgage.

Of those who have bought a house but did so later than they expected, a quarter (26%) delayed buying because they did not have the money for a deposit and one in five (19%) were not ready to settle down.

Richard Rowney, LV= life and pensions managing director said: "The cost of living is having an impact on when Brits are able to settle down, have children and buy a house. Many people are struggling to afford these major life steps and our report shows this is set to get worse in the years to come as the average age for marriage, starting a family and getting on the housing ladder are all set to increase.

"Faced with high property prices, high inflation, uncertainty over the movement of interest rates and a tough economic climate, it is not surprising Brits are developing ‘Peter Pan syndrome‘. However, people need to consider the long term financial impact of delaying major financial steps, particularly if it means they will still have high debts to pay when they are much older and approaching retirement.

"With increasing financial pressures it seems some people feel like it is never going to be a right time to fulfill their goals. Seeking expert financial advice earlier on in life could help people plan better to meet these costs.”

Paul Goverd, Managing Director of C J Hole in Southville said: “Apart from the sobering thought for any new parents that their offspring may be over 40 before they buy their own home, this report shows the value of planning and saving from as early a point as possible in order to give oneself the best range of options when it comes to the major financial decisions that are faced as we go through life.”

Gardens can sell a property

A survey of 2000 adults by HSBC has revealed that while 72% of us currently have a garden, 96% say outside space is important to us when we are viewing a new property.

Nicholas Leeming, business development director at zoopla.co.uk said: "It may be a cliché to say the British are obsessed with their lawns but the presence and maintenance of a garden can often make or break the decision to buy or rent a property. Sellers must remember that first impressions are everything and a well tended garden - particularly at the front of a house - can greatly increase the appeal of a property and help maximise the price.

"Despite the additional costs of maintenance, the appetite for gardens from buyers and renters is still strong. In May, the term ‘garden' was the third most searched criteria by people looking to buy property on Zoopla and for renters it was the single most searched attribute, a signal that the British obsession with gardens is alive and well."

"The garden adds another dimension to a house," says RHS Gold Medal winner Julian Tatlock of Julian Tatlock Garden Design. "People have started to see their garden as an integral part of their living space which they enjoy spending time in, whether it's for relaxation, entertaining or tending their own home grown produce. They have become much more interested in what goes on in their garden, for example, they want ponds and flowers which will attract wildlife and areas to ‘grow your own'.

"Even in the current economic climate we tend to buck the trend as people still want to spend money on their outdoor living space," added Julian. "Economic uncertainty has led to people staying put and doing more with what they already have and the garden has become an important part of their plans."

The HSBC survey reveals that we spend £7.7billion each year simply maintaining our outside space with green fingered gardeners spend an average £297 on the upkeep of their gardens. This includes £73 on plants and flowers, £71 on landscaping, £70 on general maintenance and a further £82 on new garden furniture.

Despite splashing the cash on their gardens, Brits use their outside space for just under a third of the year, or 120 days on average. Conversely, almost a quarter (24%) of those with a garden admit that they do not spend any time at all in it, rising to 61% of people in the winter months. Unsurprisingly the over 65s spend the most time outdoors each year, an average 137 days a year, while those aged under 25 spend the least (105 days).

Stuart Beattie, head of secured lending at HSBC commented: "While we have recently experienced a dry spell, unfortunately the UK's unpredictable weather means that homeowners do not necessarily spend as much time as they would like in their garden, with one in four admitting they don't use their garden at all and those who do, are using it for less than a third of the year.

"While having some outside space is obviously desirable among UK homeowners, it is worth considering the time and cost of maintaining a garden and being realistic about your usage before choosing a property that has a price premium attached for the additional space."

Paul Goverd, Managing Director of C J Hole in Southville said: “There is no doubt that outside space is popular with home buyers. Not everyone is looking for huge areas of garden but nearly everyone appreciates a usable outside area to relax in.”

More additions to our team !

We are very proud to introduce two new members to our growing, and experienced team at CJHole Bishopston Sales. Tom Harris and Cory Richards are great additions to the team and we are pleased with the enthusiasm and knowledge they have bought to the office dynamics. We have already been given great feedback from clients and applicants, and they have already helped our clients secure sales on their properties ! If you would like to discuss the market and what CJHole can offer you, whether you are buying or selling, please do not hesitate to pop in to our prominent office on Gloucester Road or call one of our team on 01179 232 888.

CJ Hole win Best Medium Lettings in the South West for 2011

CJ Hole wins Gold for Best Medium Lettings Agency South West for 2011 in The Times and Sunday Times Lettings
Agency of the Year Awards 2011.

The Times and Sunday Times Lettings Agency of the Year Awards 2011 were held on Tuesday 7th June at the Lancaster London Hotel. The event was organised by the Estate Agency Events and the day started with a series of seminars with experts from the industry. After a gala lunch, awards were presented by Double Olympic Gold Medal Winner Dame Kelly Holmes who was an extremely motivational and inspiring Keynote speaker. She talked about the passion, compassion and courage which enabled her to succeed.

Over 6,500 letting agents entered the competition, and awards were presented depending on the size of the company from single offices to the largest national brands, and the region in which they operate. CJ Hole won the Gold Award for the Lettings Agency of the Year 2011 South West Region. The judges’ comments noted the level of commitment that the company has to all clients and Social Responsibility to the local community.The award was accepted by Chris Hill, Director, and, Lettings Manager, Karen Rupprecht.

http://www.youtube.com/watch?v=tsUUcK3G044

Judges’ Comments:-

'Communication is key for this company and they seem to maintain an unusually (and admirably) close contact with both tenants and landlords. A huge investment in technology solutions has helped the business on several levels by streamlining systems and raising the local profile via clever use of social media. The latter is also aided by the team’s excellent attitude to and involvement with CSR – most recently fundraising to send a local child to the US for vital medical treatment. The culture of sharing knowledge and information works well and regular meetings are held to enable this on a formal basis whilst the staff are also encouraged to share both positive and negative issues informally as well. The payments structure for clients is very good indeed and the level of renewals, referrals and the excellent client feedbacks only bears witness to the top notch levels of service.'

10 Good Reasons to use C J Hole to Let Your Property

1. Follow the link to the All Agents website and look out for the Cheltenham letting agents www.allagents.co.uk/c-j-hole. This website displays honest opinions of our service freely given by both landlords and tenants. We are proud to have received these accolades from our customers

2. For your peace of mind, we offer 6 month's free HomeLet Rent guarantee insurance to all of our landlord's who take our Fully Managed Service

3. We charge nothing to hold deposits with our Fully Managed service

4. Our highly trained staff are ARLA qualified and carry out regular ongoing professional development to ensure that they are always up to date with the ever changing legislation

5. 2011 Holder's of the Gold Technology Category in the recent Estate Agents Awards, C J Hole has arguably one of the best property websites. Gaining a huge amount of 'hits' every single day, our website gives fantastic internet exposure to our rental properties

6. Located in an office right in the heart of Cheltenham, C J Hole does not just rely on technology but has a good footfall of letting applicants who can easily find us

7. Communication is everything. Not just content to update ourselves with new legislation, we ensure that we pass it on to all our landlords and tenants at the earliest opportunity. We are the only lettings agent in Cheltenham to produce a monthly newsletter for our customers

8. We pay our landlords twice a week. This enables us to pass on rental monies very quickly, and to manage your accounts effectively

9. We offer an extremely comprehensive tenancy agreement to protect both our landlords and our tenants. Created by a solicitor who practices only in landlord & tenant law & who is widely acknowledged as an expert in their field, our legal documents will offer you protection & peace of mind

10. Our valuers conduct themselves with honesty & integrity. We will give you a realistic appraisal of your property and offer advice & guidance on what to do to get the best possible rental price

To find out more, please call our friendly & knowledgeable staff on 01242 255488

A Practical Guide To Choosing The Best Estate Agent

There are dozens of estate agencies selling property in the Cheltenham area. When the time comes to sell your home, how do you choose which one to appoint? A good starting point is to find an agent who clearly understands the stresses involved in moving and who accepts that you are likely to want to sell your home quickly, with minimal hassle and at the best figure the market will pay. Many agents make unrealistic claims and rash promises, and offer little more than a simple listing service. So here are some guidelines which we hope will help you choose the right agent to sell your home.

Local expertise:

Buyers prefer to work with local experts, whom they regard as “in the know”, so choose a well-established local agent, rather than a corporate national chain with token representation in the area.

Valuation:

Beware! Some agents deliberately over-value in order to impress you to secure your instruction. They subsequently put pressure on you to reduce your price when the property fails to sell, prompting it to fall below its true market value. Conversely, there are agents who will deliberately under-value your home in order to secure a fast commission. Whilst you are likely to achieve a quick sale, you may well be considerably worse off than if you had appointed an agent with a realistic valuation policy. The issue of correct valuation is paramount and it is critical that you appoint an agent who quotes a figure using evidence of properties that have actually been sold, preferably by them, yet one who also has a thorough working knowledge of current buyer activity in the area, and who can interpret prevailing market trends to your advantage.

Commission:

Because some sellers are unaware of the differences between agencies, they have no alternative than to decide whom to appoint on the level of commission charged. This is often a huge mistake and is a bit like buying a car purely on price considerations. All cars go from A to B, but the vast price differential is related to issue of quality, reliability and the whole driving experience. The same is true of estate agents. Some “cheapie” agents simply cannot afford to provide a level of service that is either effective, or makes the selling experience hassle-fee. For example, they are often the last firms to provide adequate staff training, post-offer support or weekend cover, resulting in missing offers, slower sales and lower prices. If an agent will so easily reduce his own fees, how much more willing will he be to reduce the price of your house? The net amount in your pocket is surely more important that the percentage fees charged?

Enthusiasm:

If an agent is not enthusiastic about your property - don’t instruct them. A positive approach to selling your home is essential if purchasers are to be inspired into buying. Advertising:Make sure you choose an agent who extensively advertises properties similar to yours in the local press. Chances are that the agent will already have a large pool of buyers who enquired about other homes that are comparable to yours. Also, choose an agent who will advertise creatively using a variety of media in order to promote your property effectively.

Floorplans:

Few estate agents use floorplans in their property particulars, yet our research has shown that buyers overwhelmingly prefer them to the usual write-up and written dimensions. Floorplans make agents details more effective in prompting well-qualified viewings. CJ Hole’s details always include a floorplan.

Local Exposure:

Don’t choose an agent whose offices are tucked away from view, instead hiding behind the “efficiencies” of the internet. Choose an agent who believes in exposure, promotion and marketing with bold stylish offices – ideally with vibrant window displays rather than the faded photocopied alternative.

Opening Hours:

Buyers are naturally most active at evenings and weekends, so choose an agency whose opening hours reflect this. CJ Hole’s offices are open Monday to Friday 9:00am – 6:00pm, Saturday 9:00am to 5:00pm. All other times by appointment.

Website:

The internet is a valuable tool for the modern estate agent, but don’t be impressed by “hit” claims. All web-enabled agents are exposed to many buyers, but how well do they qualify those buyers when it comes to discussing your home? It is very easy for a “buyer” to register a passing interest, but it takes a well – trained agent to identify those buyers who have a serious and pressing need to move. Find out how easy it is for buyers to use the agent’s property search facility by visiting their website yourself.

Viewings:

Does the agent accompany all viewings? What about evening and weekends? It is incredible that so few estate agents provide accompanied viewings. Apart from the obvious security issues, only when agents accompany buyers around a property can they probe, listen and understand what the buyer really wants. Agents who develop a picture of the buyer’s preference, in addition to those few key ones that were registered, tend to have a much higher viewing/sale ratio and do not frustrate their clients with unsuitable viewers. Our policy is to accompany all buyers around a property wherever possible, and provide prompt and constructive feedback.

Independence:

Some agencies are owned and managed by large financial institutions that make more money from selling mortgages than they do selling properties. This may not be obvious from the name of the agency, but check out who owns them before making your decision. We are an independently owned franchise, and our focus is on the sale of our clients’ property, although we can provide creative financing solutions.

After-sales service:

Some agents think the sale is done when a buyer is found; but many a sale has been lost due to poor follow-up or inadequate liaison with surveyors or solicitors. Sometimes, finding a buyer is the easy part, so choose an agent that sees the sale right through to exchange and completion. As part of a well-established legal practice, the estate agency division of CJ Hole is naturally very strong in the area.

The Directors:

Choose an agency that is owned and run by proven property professionals who are interested in your sale, rather than people who are simply employed to build an empire. Could you get hold of the MD if you needed to? Our managing director is Jeremy Prosser.

Communications:

Too many agencies only communicate good news! That’s easy! Good agents are in regular contact with their clients and advise the vendor of a buyer’s response following each viewing. They also have the guts to advise you when improvements should be made in order to improve your chances of selling at the highest price. Ultimately, you are best served by choosing a locally-based agent who holds values similar to your own. One who has time to listen, one who understands your needs and concerns, one who can offer real, straight-talking advice, one who takes pride in his/her integrity, combined with a passion for results. CJ Hole, one of Cheltenham’s leading innovators in estate agency, not only fulfils, but also goes beyond many of the recommendations outlined here. You owe it to yourself to make the right choice – so when the time comes to sell …….

Choose C J Hole

We look forward to meeting you

Tel. 01242 255101 E-mail. cheltenham@cjhole.co.uk

Tips On How To Sell Your Home in The Best Light

A SHOW HOUSE

Nobody buys a house without looking at it. Our details will describe your property in a way which will attract potential buyers - not just a boring catalogue of power points and kitchen sinks, but an attractive pen portrait highlighting it’s best features. But the eyes have it - and we hope these notes will help you to ensure that the house you want to sell looks its best when buyers call.

FIRST IMPRESSIONS

Keep the front clean and tidy - lawns trimmed, flower beds cultivated and, above all, free of rubbish and clutter. In bad weather be sure that paths and steps are free from snow and ice. Keep the driveway clear and the gates open. Leave room to park. Make your home look inviting to your buyer.

LIGHT THE WAY

At night, keep a warm, welcoming light shining. Keep the porch or hall light on. Make sure the house number or name can be seen from the road - and if you have one, make sure the bell works.

CATS AND CANINES

Ideally neither seen nor heard. Keep them quiet or out of the house when potential buyers call.

A CHANCE TO SHINE ..

but if it’s too artificial, buyers may wonder why. Tidy up any peeling wallpaper and damaged paintwork. Full redecoration is unnecessary, but a little thought about presentation can help - a quicker sale or better price might be the result. And please, clean the windows.

FIX THAT TAP, TAP, TAP ...

..and replace broken lightbulbs. In themselves, these things may not sound important but we want the purchasers to feel that your house has been well cared for. If you appear to have let little things go - what about the bigger problems?

D.I.Y. ...

if you can, but if not get someone to fix or replace broken sash cords, warped doors, missing door knobs, broken slates - these features can let your property down. SAFETY FIRST Always keep halls and stairways clear. A roller skate on the stairs can upset the buyer and the sale!

KITCHEN TIP THE SCALES ...

more than any other room in the house. A well ordered kitchen with neat, clean cupboards adds appeal. Keep on top of washing up.

BATHROOMS BRIGHT ...

also helps sales. Dripping taps, a discoloured bath - these will not help. Keep your bathrooms clean, tidy and bright.

STORAGE SPACE SELLS TOO!

Display the full value of your storage space by keeping cupboards, basements and attics tidy. Throw out unwanted rubbish - you will be doing so when you move anyway.

MUSIC IS A TURN-OFF ...

and does not help when showing people around. Turn off the radio, the music centre and the television. No distractions or disturbances.

CROWDED OUT

Don’t have too many people present - potential buyers always feel like intruders and wish to respect your privacy. Try not to hurry them through the house.

SILENCE SPEAKS VOLUMES

Don’t forget conversation - be courteous, point out particular features of each room, but let the potential buyers inspect the property at their own pace. This is a serious business, not a social call.

TIDY BEDROOMS

Try to make the bed early in the day and keep all bedrooms tidy - in that way they can look more spacious and accommodating. Rumpled bedclothes and washing on the floor make bedrooms look much smaller than they really are.

THE GRAND TOUR ...

is fine - but if your buyers seem interested, let them have another look round on their own. Offer to answer their questions but then let them look at their leisure. They are making a big decision.

UP THE GARDEN PATH

If a vendor is helpful and truthful, a purchaser will quickly sense it - mislead, and confidence will quickly evaporate.

APOLOGIES DEVALUE

Present your home as best you can - but, after all, it is your home and it suits your requirements for the moment. Don’t apologise for it - by doing so might suggest problems which don’t exist.

BUYING AND SELLING YOUR HOME - THE LEGAL ASPECTS

What happens exactly? The basic procedures

There are two separate stages in buying or selling a property. The first stage is that leading up to exchanges of contracts. When exchange of contracts happens, both the seller and the buyer are legally committed to the transaction. The completion ( or moving date) is then fixed and the second stage of the transaction is the period between exchange of contracts and the completion date. P.T.O. The actual process of exchanging contracts is dealt with by your solicitor and he or she will arrange for you to sign the contract in readiness for the exchange about a week or so before the anticipated date. You may have heard that when contracts are exchanged, the buyer has to pay a 10% deposit. It is correct that the buyer does pay a deposit since that is the seller’s guarantee that the buyer will not withdraw from the transaction after exchange of contracts. Usually the deposit is between 5% and 10% of the purchase price. If you are selling as well as buying, it is usually possible to use the buyer’s deposit for your purchase. It is advisable to discuss the deposit with your solicitor as soon as possible after the commencement of the transaction.

How long will it take?

Obviously, there are many factors (in particular the length of the chain of transactions ) that can influence this but generally, if there are no unforeseen difficulties, it should be possible to exchange contracts about four to six weeks after instructing your solicitor to proceed with the matter. The completion date is then about two to four weeks after exchange of contracts.

What does your solicitor actually do?

A broad outline of the service your solicitor provides is as follows:- For the seller

* Prepare the sale contract which contains all the terms and conditions of the transaction.

* Provide detailed information ( excluding structural details ) in response to enquiries made on behalf of the buyer ( pre-contract enquiries ).

* Deal with all financial aspects of the sale - including mortgage redemption.

* Arrange for the preparation, approval and signing of all necessary property transfer documents.

* Liaise with all parties to co-ordinate the timing of the sale.

For the buyer

* Check thoroughly the sale contract and amend where necessary.

* Peruse and check all legal documents affecting the property ( including the lease, if the property is leasehold ).

* Raise all relevant enquiries relating to the property, including any particular points specifically raised by the clients.

* Investigate planning and other local matters concerning the property with the Local Authority.

* Advise on relevant points in the survey report and negotiate and ensure that any agreement concerning repairs etc. is covered in the contract.

* Check through the mortgage offer and deal with any special conditions. * Investigate the Title, i.e.: ensure that the seller has the right to sell the property to you free of all legal encumbrances.

* Deal with all financial aspects, including the mortgage.

* Register ownership at HM Land Registry.

* Ensure that the clients are kept fully informed at all stages of the transaction. How much will it cost? Obviously, solicitors’ charges do vary between different firms but most solicitors are willing to give you a fixed written estimate of their fee for dealing with your sale and/or purchase. The solicitor’s fee is subject to VAT. There will also be certain disbursements which are payments which your solicitor has to make on your behalf. These are not subject to VAT. If you are buying, the following disbursements apply ( approximate figures ):

* The HM Land Registry fee which is between £150 to £220 (for properties in the price range of £120,000 to £500,000), depending on the exact price of the property.

* The fee payable to the Local Authority for providing local, drainage and environmental searches to confirm there are no matters adversely affecting the property to the knowledge of the Council, is usually about £250, within Cheltenham Borough Council.

* Stamp duty of 1% is payable if the purchase price is between £125,000 and £250,000, from 25 March 2010 first time buyers are exempt from paying stamp duty if the purchase price does not exceed £250,000, 3% of the purchase price between £250,000 and £500,000, 4% of the purchase price between £500,000 and £1,000,000 and 5% of the purchase price for properties exceeding £1,000,000. NB: There is no stamp duty payable if the purchase price is less than £125,000.

* Other minor disbursements such as land charges and bank transfer fees will be about £40.

* If you are selling the only disbursement is the HM Land Registry fee of £8 for providing up-to-date official copies of the Land Register relating to your property.

How Does Your Agent Rate?

Whether we’re booking a hotel, restaurant or a holiday, more and more of us now look at the ‘customer reviews’ before we make our decision, and why not ...? We’re about to part with our hard earned cash so it makes perfect sense to find out how other people have rated their experience. And how often have we changed our minds having read the reviews and felt so pleased with ourselves that we had this ‘inside info’? AllAgents.co.uk is the leading review website for estate and letting agents and we would actively encourage our potential customers to take a look at the C J Hole reviews. Of course, all agents will tell you how good they are but AllAgents.co.uk will give you the opinions of the people who really matter – our customers! Below is a selection of reviews of the Cheltenham office of C J Hole and to view all C J Hole reviews, visit http://www.allagents.co.uk/c-j-hole/

Reviewed by DTF on 15th March 2011 Services: Sales (as a Vendor)

Experience: Would you use the agent again? Yes Branch: Cheltenham. Having been involved with Estate Agency for approx 30 years, I thought they dealt with the whole transaction in a professional manner from start to finish with excellent results.

Reviewed by mary milne on 25th February 2011 Services: Sales (as a Buyer)

Experience: Would you use the agent again? Yes Branch: Cheltenham. What a welcome change from the other estate agents in the town! The staff at CJHole have been extremely helpful at all times. The process of selling my house and buying another has been fraught with problems and the staff at CJ Hole have done everything they possibly could to help the situation, resulting in a successful outcome. I am now looking forward to moving in to my new home in a few weeks and should I ever need to move again will certainly go to CJHole as a first base. I particularly would mention how extremely helpful Nick Griffith has been throughout the process.

Reviewed by Diana on 11th February 2011 Services: Lettings (as a Landlord)

Experience: Would you use the agent again? Yes Branch: Cheltenham. Letting staff are superbly efficient, professional, reliable and friendly - always a pleasure to deal with them. Have just re-let and everything has been conducted & completed to the highest standard, many thanks!

Reviewed by Money Man on 8th February 2011 Services: Sales (as a Vendor)

Experience: Would you use the agent again? Yes Branch: Cheltenham. Everything ran like clockwork because when there were problems they were anticipated and resolved with the minimum of fuss. Comment on this review

Reviewed by Knotty on 19th August 2010 Services: Sales (as a Buyer)

Experience: Would you use the agent again? Yes Branch: Cheltenham. I recently bought 111 Charlton Lane through your branch, I dealt with Justin throughout and I must thank him for his great estate agency skills! I have worked in property for 20 years being involved in mortgages and buying mostly! so I have lots of experience obviously in the service estate agents give, Justin was very proactive in the process and I can say that I think towards the end his calls up and down the chain held the whole process together; sellers up the chain were getting nervous. As an example I was selling my house in Fulham through Strutt & Parker; Justin managed to speak and get more information and actuate assessment of the state of play for their related two sales through the solicitors than even the actual S & P dealing! So credit due all-round to him. I was also very pleased to get two bottles of wine & pack from your branch when we collect the keys, a nice touch I thought. Comment on this review

Just Available To Let - Battledown

Just available & ready for immediate occupation, is this modern detached family house located on the upper slopes of Battledown Hill.

£4000 pcm unfurnished.

This substantial4 bedroom, 4/5 reception room property has just become available for long term let. Ready for immediate occupation, the property enjoys outstanding views to both front and rear with a large level garden. Full details will be available on our website soon.

Call our lettings team today on 01242 255488 to arrange a viewing or for further information.

Sweet Smelling Selling Success!

As we edge closer to Spring, Jeremy Prosser suggests some easy ways to make your property more saleable in an increasingly competitive market....

For many people 2011 will mean a new home and even a new start. It is an exciting prospect, even if it is a little daunting. Moving home is a big step - plus this year both buyers and sellers will have to contend with a market that is still suffering from the recessional hangover and austerity measures.

Buyers will have to ensure that they are in a good position to obtain a mortgage at a time when lenders aren't doing much to help.

But sellers can do much to help themselves in making their property as attractive as possible. Some thought and action before going on to the market and some small touches when receiving viewers will make a big difference both to saleability and to the eventual sale price.

So here are some simple tips to help make the first step to a successful move.

To get top price for your property it must tick a number of boxes. Nothing can be done to improve location and increasing the space is a bit radical and expensive, but price and condition can always be made more attractive to buyers.

First, property should seduce the senses by appealing to the nose, the eye and the ear. Would you prefer the small of fresh flowers, freshly brewed coffee and baking bread or the odour of somebody else's pungent cooking and unaired bedrooms and bathrooms? Best to take spicy foods off the menu for a while and open some windows. Buy an expensive aromatic candle or two and light them up before a potential buyer arrives. Then they will be delighted to follow their noses.

De-cluttering is vital to make the space look as large as possible. There should bea place for books, magazines, clothes, kitchen utensils, etc and all these things should be in their rightful places. Removing just one piece of furniture from a room can make a big impact to the sense of space. Clashing colours may be some people's idea of great interior design, but many buyers would run a mile. If necessary, repaint in a light neutral colour - it looks clean, offends no one and makes rooms look larger. It will be worth some time with a roller and the relatively small cost of trade emulsion.

Does your property sound good? Is there loud music blaring or an off-putting television in the background? Turn them off. Are there young children screaming? Turn them off too! Let peace reign. Or if there is intrusive noise from outside like traffic, play some soothing music to please the ear.

Don't forget the first impression. Most unkempt front gardens imply an unkempt house. Cut the grass. Prune the plants. Hide the dustbin. Store away the red plastic children's slide that has faded to pink in the sun.

Finally your property should appeal to a buyer's pocket. Price it to sell. Follow these rules, gird yourself for cancellations, no-shows and less-than-tactful viewers and you will be on the way to sweet smelling selling success. Woe betides the seller down the road who lives in overpriced mess within an overgrown garden. You will have moved to a new life long before they wake up and smell the coffee.

Confidence in the local market & Child safety awareness

After what seemed like an eternity off over Christmas it's great to back in the office and very encouraging to have got off to such a great start. It hasn't come as to much of a surprise to us as the week leading up to Christmas was extremely busy taking into account the time of year. With lots of New Instructions in place going into the New Year we have been inundated with activity from buyers already on our existing database but also from new active buyers. This in turn has generated lots of new offers which proves that confidence locally in the market place is still present and with interest rates still low we predict a strong first quarter.

On another note CJ Henleaze have recently teamed up with several local schools to launch a child safety awareness scheme (CSAS). We are proud to support the local community, look out for our fluorescent signs outside your local school in Henleaze, Westbury-on-Trym and Westbury Park.

Life, Confidence & the Property Market

Property’s getting a bad press – but don’t believe everything you read!

During the past few months there has been much concern expressed about the property market so we thought we’d take a moment to alleviate any feelings of apprehension you may have.

Fluctuations in the property market take place at regular intervals and, while never to be taken lightly, should not be viewed as a reason to postpone or cancel plans to move home.

It’s important to understand that the market is consistent. All prices are high in a buoyant market, meaning though you may generate more for your sale you will undoubtedly have to pay more to buy. Likewise, a downturn in the market means that you may need to consider adjusting your asking price accordingly, but can be confident that other sellers are doing the same – meaning you can purchase your new home at a lower cost and with a smaller mortgage, knowing that value will rise as the market recovers.

You will undoubtedly experience many different opinions, but it’s important to respect those that are well founded in fact rather than just mere speculation.

We would take pleasure in offering an expert valuation of your home and situation, offering sound advice on steps you can take and opportunities you can consider in order to maximise your rewards in the property market. We have an in-depth knowledge of the local market and audience, and full awareness of the types of properties which are proving popular at any particular time – giving you an unrivalled advantage knowing when and how to market your home.

We would be delighted if we could help you to make an informed decision on the most appropriate marketing strategy for your home.

CJ Hole voted winner at the 'Oscars' of the estate agency industry, the 2010 Estate Agency of the Year Awards

CJ Hole received the ultimate industry accolade on Friday 3rd December when our group was crowned as the Gold winner of the Technology & Online Award at the 2010 Estate Agency of the Year Awards in association with The Sunday Times and The Times.

The event is recognised as the most important event in the industry calendar and attracted agents from across the country representing over 4,000 branches.

Our entry was subjected to rigorous scrutiny by a panel of independent industry experts and the whole judging process was overseen by the Property Ombudsman Christopher Hamer with Peter Bolton King, Chief Executive of NFOPP acting as Arbiter.

The Judges’ Report stated:

“CJ Hole subscribe to the view that technology and its development is key to its business. Recognising that technology is a tool, not a means to an end, their online presence and back-office systems are designed to complement and enhance their service offering and ease their customers’ journey. Their website has been re-designed completely this year and the team has worked closely with the web designers to ensure they can capture all information needed internally to target customers successfully. The data gathered has also enabled them to change the layouts and pages on the websites to ensure they are easily navigable and comprehensive. An excellent understanding and usage of social media, e-marketing, intranet and blogging sits alongside to win them the gold.”

We’ve strived to embrace the latest technologies at CJ Hole to ensure our properties get maximum exposure online, but also to help us provide a better service to all the buyers, sellers, tenants and landlords that we serve.

In addition to the Best Technology & Online Award, our group was also awarded Gold for Best Franchise, a testament to the calibre of our agents and the team that support them centrally. Everyone is thrilled with these awards and we’re already working on a number of things to raise the bar still further in 2011.

To see details of our achievement on the Awards website, please visit:

http://www.estateagencyevents.com/winners/xperience/

Estate Agents Licence Scheme Aims to Better Standards

A Licence for estate agents is being introduced by Estate Agents for the first time in a major push to raise standards in the industry.

The National Association of Estate Agents (NAEA) who are behind the scheme says more must be done to protect consumers from unprofessional agents.

A licensed estate agency branch means consumers are guaranteed that at least one agent within that branch is qualified in residential property sales, either through a formal qualification or through length of service in the industry.

Currently there is no barrier to anyone setting up and practising as an estate agent. There is no legal requirement for estate agents to obtain the new licence, leaving consumers with a clear choice over whether they choose a licensed or unlicensed agent.

Peter Bolton King, chief executive of the NAEA, said: “Nobody would knowingly get into an unlicensed taxi. However thousands of people are willing to entrust one of most important transactions of their life to people who are not qualified or experienced.

“We would like all sellers and buyers to ask their prospective agents, ‘Do you have a licence?’. If they don’t, they should ask themselves whether that’s the best place to market their property.

“From today estate agency in the UK is a two-tiered industry – those agents who are licensed and those who are not. I think the public will welcome the distinction and I believe that this move will raise standards across the industry.”

Housing Minister Grant Shapps said:

"For years I’ve been calling for better standards throughout this industry, so I’m delighted the NAEA are taking matters into their own hands and launching a licensing scheme that will ensure their members become known for their professionalism and integrity. I call on all estate agents to sign up and make sure they’re not left behind when consumers vote with their feet."

"This is exactly the sort of measure the housing market needs – simple and sensible changes that are driven by industry and designed to deliver results. By ensuring they enjoy the trust of people buying and selling homes, estate agents will inject greater confidence and movement in the housing market. In future anyone looking to buy a home or sell theirs should ask the simple question of their estate agents - "are you licensed?"

(Property Talk 18 Nov 2010)

Challenging Market

There has been much concern expressed about the property market so we thought we'd take a moment to alleviate any feelings of apprehension you may have.

Fluctuations in the property market take place at regular intervals and, while never to be taken lightly, should not be viewed as a reason to postpone or cancel plans to move home.It's important to understand that the market is consistent. All prices are high in a buoyant market, meaning though you may generate more for your sale you will undoubtedly have to pay more to buy. Likewise, a downturn in the market means that you may need to consider adjusting your asking price accordingly, but can be confident that other sellers are doing the same - meaning you can purchase your new home at a lower cost and with a smaller mortgage, knowing that value will rise as the market recovers.

You will undoubtedly experience may different opinions, but it's important to respect those that are well founded in fact rather than just mere speculation. We would take pleasure in offering an expert evaluation of your home and situation, offering sound advice on steps you can take and opportunities you can consider in order to maximise your rewards in the property market. We have an in-depth knowledge of the local market and audience, and full awareness of the types of properties which are proving popular at any particular time - giving you an unrivalled advantage knowing when and how to market your home.

We would be delighted if we could help you to make an informed decision on the most appropriate marketing strategy for your home.

A Practical Guide to Choosing the Right Estate Agent to Sell your Home

A practical guide to choosing the right Estate Agent to sell your home.

A Practical Guide to Choosing the Right Estate Agent to Sell your Home

When the time comes to sell your home, how do you choose which estate agent to appoint? You have a tremendous choice of agencies and, on the surface, most appear to do more or less the same thing. But there is far more to moving than simply finding a buyer, and it is critical that when the time comes, you choose the right agent for you, your property and your situation.

A good starting point is to find an agent who clearly understands the stresses involved in moving and who accepts that you are likely to want to sell your home with minimal stress and for the most attractive figure the current market will pay within a convenient timescale.

Many agents make unrealistic claims and rash promises, so here are some guidelines which we hope will help you choose the right agent to sell your home.

Valuation

Beware! It is well-known that some agents deliberately over-value in order to impress you to secure your instruction, so don’t fall into the trap of simply choosing the agent with the highest valuation. Aninflated price attracts the wrong buyers to your property, and the right buyers never see it, resulting in the property going stale on the market. This often leads to the property falling below its true market value.

The issue of correct valuation is paramount. It is critical that you appoint an agent who not only has a track record of successful sales in the area (not just properties on the market) but also has a thorough working knowledge of current buyer activity, and who can interpret prevailing market trends to your advantage.

Commission

Many sellers are unaware of the considerable differences between agencies and have no alternative than to decide whom to appoint on the level of commission charged. This is often a huge mistake and is a bit like buying a car purely on price considerations. All cars go from A to B, but the vast price differential is related to issues of quality, reliability, security, performance and the whole driving experience.

The same is true of estate agents. Some agents simply cannot afford to provide a level of service that is either effective, or makes the selling experience hassle-free. For example, they are often the last firms to provide adequate staff training or post-offer support, resulting in missed offers, slower sales and lower prices.

Cut-price estate agents usually require a higher turnover of stock in order to survive and they are therefore likely to be less concerned about securing the best price for their clients. The net amount in your pocket is surely more important than the percentage fee charged!

Communication

Too many agencies only communicate good news! That’s easy! Good agents are in frequent contact with their clients and have the guts to advise you if anything needs to be done to improve your chances of an impressive sale.

Enthusiasm

If an agent is not enthusiastic about your property – don’t instruct them. A positive approach to selling your home is essential if buyers are to be inspired into buying your home.

Directors

Choose an agent that is owned and run by property professionals who are interested in your sale, rather than by people who are simply employed to build an empire. Could you get hold of a Director if you needed to? C J Hole is personally run by its Director , Chris Hill, whose contact telephone number is 0117 9232 888.

As a successful franchise outlet, CJ Hole enjoys the benefits of being a wholly owned locally-based independent agency with well established roots in the Bristol, Somerset and Gloucestershire area, whilst enjoying the support, training, referral network and marketing clout that can only be provided by the UK’s largest franchised estate agency organisation.

7-day Opening

Is your agent open seven days a week? It stands to reason that buyers are most active at weekends, so why instruct an agent who is closed – just when you need them to be open! More buyer activity usually means a better price for your home!

SMS Text Messaging

Make sure that you appoint an agent who employs the latest technology to ensure that their buyers are offered your property first. One of the reasons for our high viewing rate is that within minutes of taking a property onto our books, details are sent as a text message to all suitable buyers.

Viewings

Does the agent accompany all viewings? What about evenings and weekends? It is incredible that so few estate agents provide accompanied viewings. Apart from the obvious security issues, only when agents accompany buyers around a property can they probe, listen and understand what the buyer really wants. Agents who develop a picture of the buyers’ preferences, in addition to those few key ones that were registered, tend to have a much higher viewing/sale ratio and do not frustrate their clients with unsuitable viewers.

(Our policy is to accompany all buyers around a property wherever possible, and provide prompt and constructive feedback.)

Internet

The Internet is a valuable tool in estate agency. But don’t be impressed by any “hit” claims. All web-enabled agents are exposed to many buyers, but how well do they qualify those buyers when it comes to discussing your home. It is very easy for a “buyer” to register a passing interest. It takes a well-trained agent to identify those buyers who have a serious and pressing need to move. Find out how easy it is for buyers to use the agent’s property search facility by visiting their website yourself. Is it impressive, state-of-theart,and does it provide useful buying and selling advice?

Property Portals

Over 80% of buyers use the internet when looking for a property. So you need to be sure that your property is found and promoted – quickly and easily. An agent might have a great website, and that’s fine, but do they subscribe to the most effective property portals, because this is how buyers are directed to your property when they search using the search engines such as Google, Ask Jeeves, Excite or Yahoo. Three of the UK’s market-leading sites are Rightmove.co.uk, Propertyfinder.com and Fish4homes.

Good agents list their clients’ property on one of these, but very few list on all. But if you want maximum coverage leading to more buyers and therefore the chance to achieve the very highest price for your home, then you really should use an agent who subscribes to these major portals.

Three-D Floorplans/Walkthrough Tours

Good estate agents provide 3D floorplans on their particulars. They are far more helpful and accurate than the flowery descriptions some agents still use, and buyers find them invaluable. A step ahead of “flat” floorplans 3D floorplans improve the quality of viewings because they weed out clearly unsuitable purchasers and, importantly, can motivate those who mightotherwise not have viewed your property.

On-Line Progress Tracking:

Accurate and timely information is the key to a stress-free move, and it is reassuring to know that your agent uses revolutionary on-line progress tracking which is automatically updated by the agent This means you can find out what progress is being made with your sale, and also that of any linked transactions. You can securely access your dedicated progress file via a password-protected on-line facility in real-time, 24 hours a day.

Open House

Open Houses are planned viewing times that, when marketed correctly; often attract large numbers of buyers who might not otherwise have viewed a property. So for maximum exposure, choose an agent who uses the open house method as part of their marketing strategy.

Lettings

When you are choosing a selling agent, do make sure you choose one who also does lettings. Letting agents have long-term buy-to-let property investors permanently on their books who buy regularly.They know the agent, and they make quick decisions and reliable offers. They prefer to buy through an agency that does lettings because it is easy for them to let out their new investment. Also, many tenants also to buy. Good lettings agents build strong relationships with their tenants and are in a good position to help them buy one of their own selling clients’ properties. It also means that should you decide to rent your property out instead of selling it the same agent can handle both – whichever comes along first!

Advertising

Make sure you choose an agent who advertises properties similar to yours in the local press. Chances are that they will already have a large pool of buyers who have enquired about similar homes to yours. However, be wary of the agent who promises to advertise your property every week with a postage stamp size ad! This is simply paying lip-service to you and has very little to do with marketing strategy as it can cheapen your property and lead to over-exposure.

Change of Address

The best agents tend to be involved right the way through the whole moving process – not just the sale. For example, a small indication of this is that, on exchange of contracts, we supply all our buyers and sellers with change of address cards. One more moving headache avoided!

Financial Services

Make sure you appoint an agency that has close ties with a stable and efficient financial services provider who can help buyers with their funding. This can be pivotal in clinching a sale and making sure that it sticks!

Ombudsman

Anyone can become an estate agent in this country without any qualifications or minimum service standards! Agents who wish to demonstrate their commitment to consumer protection will be members of the Ombudsman for Estate Agents scheme, which has a rigorous Code of Practice. The Ombudsman is independent and impartial and that can listen to any complaints and award binding financial compensation without the expense and hassle of having to go through the courts. The sale of your property is too important to entrust to just anyone. So we recommend you choose an agent who is a member of the Ombudsman scheme.

M.N.A.E.A membership

One of the most important aspects to consider is whether your agent is a member of the National Association of Estate Agents, which sets down a stringent code of conduct and provides extensive training for its members. Ultimately, you are best served by choosing a locally based agent who holds values similar to your own.

One who has time to listen; one who understands your needs and concerns; one who can offer real, straight-talking advice; one who takes pride in his/her integrity, combined with a passion for results.

Needless to say, C J Hole not only fulfils, but also goes beyond many of the recommendations outlined here.

You owe it to yourself to make the right choice. So when the time comes to sell, choose wisely.

Choose C J Hole.

“Helping you with your move, not just your sale”

OUTSTANDING OCTOBER!!

At C J Hole Cheltenham we have exceeded our own high expectations in October having just recorded the best ever lettings performance since our figures began! And November seems to be heading the same way with our sales department having sold four properties in the last four days!

We have a large database of eager tenants looking to move in before Christmas and we urgently require lettings properties to satisfy this demand. Landlords, please telephone us on 01242 255488 for a no obligation valuation of your rental property.

October 2010 recent market conditions

The C J Hole Henleaze office predicted the 3rd quarter having a slow start but good ending(quote our website statement Aug./Sept. 2010)

The C J Hole Henleaze office predicted the 3rd quarter having a slow start but good ending(quote our website statement Aug./Sept. 2010) This was mainly due to the seasonal market with holidays etc., now that October has come and gone we are well into the 4th and final quarter.

Most Applicants that have been looking to move but not essential have been slightly less focussed on the market place .We were warned about the job cuts coming in October , despite all the doom & gloom/headlines we registered over 150 new active buyers & carried out almost 400 viewings which generated a grand total of 45 offers!

The key to getting success is about qualifying buyers and managing instructions, due to the slow activity in August we were fairly conservative on valuations and focussed on repositioning some of the instructions into the market place, this naturally made our properties more competitive & in turn generated strong interest and great results, most these clients are looking to be in by Christmas.

Change in the Property Market

There’s currently a lot of talk about changes in the property market and how it will affect you if you’re looking to sell or buy a home. It’s important to avoid the conjecture, steer clear of the speculation, and speak with experts in the area who really know how to capably manage any fluctuations.

Whether on its way up or down, the property market can offer a rewarding experience for all home owners. Ups and downs in the market are always taking place, and we have the experience and proven ability to deal with them effectively.

It’s important to understand that providing you sell and buy in the same market, you are never worse off. A buoyant market means you are likely to sell your home for more, but pay a larger amount for its replacement. Likewise, though you may generate less than the asking price you’d expect if you sell now, you’ll be able to buy your new home at a lower cost with a smaller mortgage too. And when the market picks up again soon, the value of your new home will rise with it.

Naturally it’s important not to set the sights overly high and be forced to live beyond your means. But there’s no reason to take a negative view of the current market – any home owner looking to sell is in as strong a position as ever.

We’d like to provide a free evaluation of your home, and offer peace of mind regarding the local property market. We’ll be able to advise on the types of properties that are proving to be attractive and what you can do to maximise the value of your home.

Take confidence with positive advice from the experts.

Seasonal Market

Positive results in September despite the headlines

It has been very evident that the market has returned to being a seasonal one throughout this year and this has been emphasized by the level of activity we have received between August and September. August was a very slow month for sales and this is mainly down to the summer holidays, a lot of people being away and kids off school. We anticipated September to be very busy and it has not let us down with sales being very good with more properties being available and a desire for buyers and vendors to be moved by Christmas. We hope for this to continue over the next 6 weeks before inevitably as we draw closer to the Christmas period the market will start to slow down again.

Bristol Property Live Now Here

The exciting new property paper out now at your local stockist!

‘The new Bristol property paper is now here!! ‘Bristol Property Live’ is now into its second issue with initial feedback very positive from the general public. At CJ Hole we have been behind the plans from day one and continue to be an avid supporter, encouraging local outlets to stock the new paper. So prospective buyers and sellers we encourage you to use this paper and support us in its expansion’

Why Instruct a Franchised Agent?

Every size and shape of estate agency is represented in Cheltenham, from the sleepy one-man band, to the independent firm and the national operator, and each have their respective merits.

The one- man band who has been in the area for years knows everyone, and has probably visited most of the properties in the area at some stage. However, many of these agencies are too reliant on an overworked key individual. They can also have difficulty attracting and retaining good staff and often struggle to cope.

Then there is the representative office of a large national estate agency chain, which is often a subsidiary of a financial institution, where selling financial products may be of more interest than selling its clients’ properties. Area, district and regional managers come and go as they seek to build the empire, and a strong focus on national targets can override the delivery of the high quality local service customers rightfully expect. Nevertheless, there are often strong centralised support facilities which can enhance the service clients receive.

The halfway house could be the independent firm with several local branches although, like the one-man brand, it is unlikely that they will have the same resources at their disposal as the national chain.

All of which made me think how fortunate we are at C J Hole to be a franchised office of a national chain of strong independent firms each of whom share excellent central training, referral, marketing, mortgage and admin facilities, whilst retaining their own heritage, style and brand. As the actual directors of each business are thoroughly involved in the day to day running of the branch, local accountability is retained and each customer gets the attention they deserve, whilst benefiting from the major clout of an influential group. Surely – it doesn’t get much better than that!

Why not give us a call to find out how our distinctive style of agency could be right up your street when the time comes to buy or sell?

SUCCESSFUL DAY AT THE LANDLORDS EXPO!!

Yesterday three of our lettings team attended the Landlord’s Expo held at the Cheltenham Racecourse.

Located in the prestigious ‘Hall of Fame’, the exhibitors were all involved in the provision of services and information to existing and prospective landlords and an expert panel held seminars throughout the afternoon.

Our experienced and knowledgeable staff gave help and guidance on all aspects of the lettings process and provided visitors to the stand with our branded ‘goody’ bags!

If you were unable to attend on the day but have any questions about letting out or acquiring a rental property, please call Janice, Jenny or Alex on 01242 255488.

Join us today at the Gloucestershire Landlord Advice Day & Expo - 12.30 - 7pm

Should I ? Shouldn't I ?

The most frequently asked question in estate agency - finally answered ??

A question I am always asked on valuations is ‘should I change the kitchen or bathroom?’ this is usually followed by ‘could I get more for my property if I do? It’s a very good question to ask, naturally anyone spending money on their property would like to see a return on there investment especially so close to the point of selling.

My reply in almost every situation is usually a straight forward, ‘No and No’. Now maybe that’s not the answer you would expect, and to be honest with you, I would dress up my ‘no’ in true estate agent fashion but the reason behind the ‘no’ is fairly simple.

Changing the bathroom or kitchen won’t increase the value of the property anymore than what it costs to replace the old one, and because our taste vary from person to person, the all black marble kitchen with feature lighting and latest kitchen technology costing £15,000 may not appeal to everyone. In fact it may even make the rest of the house look old and in need of re-decoration. Last thing you want (and believe me it happens) is someone making you an offer £30,000 below asking price because the house is in need of some work and they will have to rip the kitchen out and replace it. Which would cost £15,000 alone! Although a rather extreme example it is always better to be prepared for the fact that the kitchen/ bathroom may need replacing and build this into your price and offer expectations. Maybe get some quotes on prices so that when it does come to negotiating on the sale of the property you know what to expect, let your agent know so that on viewings if the topic is raised they are prepared.

However houses are not so black and white and every home is different. I do let my vendors know that there is a very strong argument for adding a new bathroom and kitchen not because it will add any considerable value but because if done right it will make the property more appealing, increasing the saleability of the property and getting you closer to that asking price. In some circumstance a little bit more. However it means not only the kitchen and bathroom but taking the whole property with you on the journey and making sure, that when finished it will look like the show room you have envisaged. If not the chances are you would have spent a lot of time and money and find yourself at the same point before you started. If done right it could be sold in days of going to market and you may even find yourself in the middle of a bidding war.

The key here is to be honest with your self either way and be prepared to take on the workload and do it right or build it into your negotiation. A good estate agent will always give you honest feed back on a valuation and advise on what’s best for that particular property and work with your expectations to achieve the best price for your property.

Note: Sellers are advised to take advise based on their individual property before financial committing on any re-decoration.

NEW TO THE MARKET - CHARLTON KINGS £850,000

A stunning Edwardian 4 bedroom detached house with a large south facing rear garden in a prime residential road bordering Charlton Kings & Leckhampton.

Call us now on 01242/255101 if you would like further information, floor plan and photographs

HOUSE PRICES TO RISE BY 20%

Experts say thousands will be lifted out of negative equity

House prices are set to soar by almost 20 per cent in the next four years, according to experts. This will lift thousands of households out of negative equity, with the average family home gaining more than £30,000 in value.

The forecast defies doom-mongers who predicted Britain would face a double-dip housing recession.

Martin Gahbauer, chief economist at the Nationwide building society, said: “It’s not a double dip and it’s not a massive boom, which would not be good for the market.“People can be cautiously optimistic. If it turns out that way, it would probably lift quite a few people out of negative equity within two to three years.”

And Emma Partridge of Halifax, Britain’s biggest mortgage lender, said there was further good news for home owners.She said: “Because this is happening at the same time as low interest rates, it’s providing people with the opportunity to pay more to improve their equity. And if there aren’t going to be any further drops in house prices then that enables people to bolster their equity as well.”

Last year, after house prices tumbled, almost a million households were left in negative equity, with their property’s value less than the amount they owed on their mortgage. According to the respected Centre for Economics and Business Research, a “fundamental shortage of housing supply” will steadily drive up prices this year and next, with a further five per cent increase expected in 2012.The growth is due to continue with a 5.4 per cent increase in 2013 followed by a 3.9 per cent rise in 2014. Based on the latest estimates, the average price of a home in Britain would rise from £179,000 at the end of 2010 to £212,000 by 2014.

The figures suggest the housing market will weather the storm of public spending cuts, which had raised concerns that the sector could face another downturn.

Peter Bolton King, chief executive of the National Association of Estate Agents, said: “This just shows there is confidence out there from people who should know what they’re talking about, that investing in property is good. It gives people that little bit of confidence in the UK economy.” But he warned Britain faced a shortage of homes on the market. “Last year, fewer properties were built in this country than at any time since the Second World War,” he said. Population growth will continue but more importantly, household formations are going to continue to grow. We’re nowhere near catching up.”

The CEBR’s Consumer And Housing Prospects report, which also predicted the number of monthly mortgage approvals would jump from 51,000 this year to 80,000 in 2014, quelled concerns that the market was struggling to recover.It said “doomsayers” who claimed the recent drop in prices was the start of another crash had “got it wrong”.

The rebuff came after a report from the National Institute of Economic and Social Research said the housing market would fall by eight per cent in real terms over five years. Nationwide’s house price index for July had also suggested a 0.5 per cent drop.

Benjamin Williamson, one of the CEBR report authors, cautioned there would not be a “return to dizzying house prices any time soon”. “Our forecasts show that house prices are unlikely to reach 2007 levels before 2013,” he said.

Fixed rate mortgages gain in popularity

48% of new borrowers took out a fixed rate mortgage in June, the highest proportion so far in 2010, according to new data from the Council of Mortgage Lenders.Fixed rates had proved unpopular this year compared to the last several years due to an historic low bank rate with little prospect of the rate rising. But with fixed rate prices falling they are starting to find favour again.

House purchase lending increased significantly in June. There were 52,000 loans advanced (worth £7.6bn), up 19% in volume (23% in value) from May 2010 and up 14% in volume (27% in value) from June 2009. This is now the twelfth consecutive month in which lending has been higher than its year-earlier levels.

Lending for remortgage also increased, though only modestly, in June. There were 27,000 loans for remortgage, worth £3.4bn, up from 26,000 (worth £3.2bn) in May 2010 but down from 34,000 (worth £4.2bn) in June 2009.

For help finding your next mortgage contact our experianced Mortagage Advisor, Sherrylann Cousins on 01454 626 300

School holidays drawing to a close will increase house sales in the local area.

With the impending end of the school holidays CJHole Bishopston fully expect the housing market to hit new heights before Christmas. Over the last few weeks we have found that flats have been selling exceptionally well. This is due to the fact that many young professionals avoid going on holiday at peak times; with holidays costing more and the likely hood of there being more children on holiday as well; they have still been arranging viewings and purchasing property. These young professionals/first time buyers are the main demographic looking to purchase flats and apartments, hence the buoyancy in sales in this specific market place.

As the children head back to school, parents start viewing properties again in the knowledge that agreeing a sale in the next month should allow them to be able to collect their keys to their new family home in time for Christmas. This will increase the amount of house sales in the more predominantly family based areas of Bishopston, St. Andrews and Horfield.

With our prominent position on Gloucester Road and our extended open hours, CJHole are helping their vendors take full advantage of the busy spell before the market traditionally slows down during the festive period.

If you want to know more about what CJHole Gloucester Road have to offer or want to pick our experienced and knowledgeable staffs brains for advice about your property please feel free to contact us on 01179 232 888.

Excellent fortnight for new instructions in Cheltenham!

September looks set to be a very busy month in Cheltenham with the last 2 weeks bringing in 14 new instructions including a building plot in Station Street and a new build 3 bedroom detached bungalow in Prestbury. You can see details of all the new properties on our website and brochures can now be downloaded directly just by clicking on the ‘view brochure’ button!

MPs Show Concern at Lack of Protection in Lettings

MPs have demonstrated their concern at the lack of regulation for the lettings market in Parliament.

More than 60 MPs have now signed an Early Day Motion (EDM) which highlights their concern at the Government's decision to abandon the plans for a national register for landlords and further regulation of the private rented sector (PRS).

The EDM outlines the role that the PRS plays in supporting the UK housing market but that rogue landlords and lettings agents pose a threat to consumers.The Property Ombudsman has already noted that the number of complaints against such landlords and lettings agents has risen.

By signing the EDM, the MPs support a call to create a national register of landlords and further regulation of landlords and letting agents.

Ian Potter, Operations Manager of the Association of Residential Letting Agents (ARLA), said: "ARLA has long campaigned for the introduction of compulsory regulation of lettings agents, along the same lines as our own member-led licensing scheme launched last year. Currently, any person or organisation can become a letting agent.

"The Housing Minister Grant Shapps MP has pledged to work with ARLA to develop an industry-led solution to remove unprofessional letting agents from the market. We also welcome the Government's support for ARLA's licensing scheme, but we will continue to press the Government to recognise the importance of government regulation for the PRS."

We greatly appreciate the support that the MPs have offered with this EDM. Until the current status quo is changed via national regulation, unprofessional, unqualified and unethical operators will continue to prey at the expense of the general public."

North Bristol's new looking team

CJ Hole North Bristol expects a busy end to 2010, with an addition to the already experienced team

With the end of the summer holidays in sight and in anticipation of a busy end to the year, CJ Hole North Bristol are pleased to announce the latest addition to the team. Matt Gregory joins the branch as the Sales Manager and brings with him a wealth of experience having enjoyed eight years in the Bristol property market. Complimenting an already experienced sales and lettings team, CJ Hole are well positioned to offer advice to sellers and landlords across North Bristol guiding them through the current market conditions. Uniquely positioned in the Willow Brook Town Centre, whether you are buying, selling or renting call in and meet the team and find out how CJ Hole can help you.

Bishopston team grows again !

CJHole Bishopston are very proud to introduce their newest member of staff to their busy office, Jonathan Mount.

Despite the recent press reports to the contrary, and the school holidays, the property market seems buoyant and stable in the Bishopston area. With that in mind CJHole Bishopston are very proud to introduce their newest member of staff to their busy office, Jonathan Mount. Jonathan is an experienced estate agent working in a variety of differing markets and brings a wealth of knowledge and enthusiasm to his new role as Senior Sales Negotiator at CJHole. Already agreeing sales on properties in his first week, it is clear Jonathan is transferring his knowledge to our clients advantage already. If you would like to discuss the market and what CJHole can offer you, whether you are buying or selling, please do not hesitate to pop in to our prominent office on GloucesterRoad or call one of our team on 01179 232 888.

A Message to Serious Sellers

It was all going very nicely really. Contrary to expectations, the property market in the latter half of last year and over the first half of this year was rather good.

The reasons for this are now clear to everyone. Low numbers of available property and keen cash buyers made for an active sellers’ market.

But all that has now changed. The end of Home Information Packs ushered in a large number of speculative sellers, encouraged by the promise of a demand-led surge in house prices. Also those fortunate to be cash buyers or those only needing very low mortgages were never going to be an endless resource.

The result is a market with significantly more property available than a year ago. Added to which dwindling numbers of non-cash buyers, many hampered by lenders’ very harsh lending criteria, have become increasingly concerned by reports of austerity, public sector lay-offs and the spectre of rising interest rates.

This may seem gloomy but forewarned is forearmed, and those that react quickly to the market will be the winners. So what is a seller, who was expecting a quick sale at a full price, to do with this rather sudden reversal of fortune?

Two speedy actions are important to help along a move before the New Year. The first is pricing. It is now essential to price for viewers. Viewers mean buyers. No viewers means no buyers. An unrealistic price will put off viewers. Do not price for a miracle buyer – that is so last year! Forget the practice of pricing above your reasonable expectations because “people will make a lower offer if they are interested” - not if they haven’t viewed they won’t!

Second, to ensure that a property is the pick of the bunch it must look the best it ever has. Cleaning and de-cluttering should be carried out as though a sale depends on it – because it does. Both these actions are easy and cost free. Decorating and refitting a dated kitchen and/or a bathroom to attract a buyer is more serious but in the right circumstances can win a buyer and even return a profit.

Please ask us if you feel you would like fresh selling advice. Getting these issues right now will save a great deal of time and money later. If prices remain stable then the best-presented properties will sell first. If prices are going into another period of correction then the clock is ticking.

Either way we urge sellers to take some affirmative action today.

Do You Feel Lucky.........?

Jeremy Prosser of C J Hole comments on the property market as the autumn market approaches.

Some people are naturally gifted with clothes or plants or DIY or cooking. Others are less so. Some people are really good at buying and selling property. The process seems easy to them. But others can find it stressful, difficult and emotional, and they hardly enjoy the process.

Its understandable to think that an estate agent’s job is simply to find a buyer and that is it, job done. But in truth the role is as much about project management as sales. Finding someone who says they want to buy your property is a far cry from their being able to buy your property. Then there is chain management – several house sales and purchases may all be interdependent. Here a lot can go wrong. Most properties need surveys, many need mortgages and all will be subject to the emotional rollercoaster of property transactions that may, in the end, rest on a group of strangers all behaving well and sensibly towards each other.

A few brave souls would happily build a new house without the services of a project manager to bring together all the professionals, tradespeople and suppliers that are inevitably involved. But most people wouldn’t dream of being without one. Property sale and purchase is the same. Doing it yourself or getting the service on the cheap could save you a bit and work out reasonably well - if you remain focused, detached, flexible, reasonable, compassionate, completely understanding of your fellow man and have some luck.

But if you have little time, little relevant experience, little patience, don’t wish to gamble on luck and lack that natural gift for coolly buying and selling hugely important and valuable items of personal importance, it may be better to leave it up to an experienced and talented project manager to bring it all together. Successful house sales and purchases don’t usually happen all by themselves. They happen because skilful, experienced, patient and tactful people behind the scenes make them happen.

An estate agent might be expected to say this, but time and again it proves to be true. Valuable and important items like fine art or wine, stocks and shares, cars, yachts or land and houses are often best sold through a third party - and the better the third party the better the outcome.

So if you are intending to sell your house this autumn, don’t compromise. Insist on the best sales and project manager you can get. It is the sure way you will get the best result. Or do you feel lucky?

Lettings Agents Prove Better at Avoiding Voids

Letting agents are more successful at keeping rental properties occupied than individual landlords, according to the DPS.

Lettings agents ensure that the void period on a property is kept to within two weeks on 63% of properties, compared with only 38% for those marketed by landlords directly.The DPS has assessed the void periods across 597,753 deposits it holds on rentals in the UK. The figures also point to huge regional differences throughout the country, the worst scenario being two-thirds of available rental properties lying empty for more than three months.Two of the ten worst areas for empty properties were in Lancashire. However, the South was also badly hit, with areas in Surrey, Essex and Hampshire among the worst. In some areas, half of rental properties have been empty for more than three months.Kevin Firth, director of the DPS, said: “Many landlords market their properties very effectively, but the evidence we have compiled in the past two years demonstrates clearly that there is more they can learn to try to decrease void periods.“In the current market – where demand for rental property far exceeds supply – there is no excuse for allowing properties to remain dormant and not earning income.”

New Website

CJ Hole's New Website launched this week

CJ Hole Southville is pleased to announce the launch of its new website. It has been re-designed to help you navigate through lettings and sales properties with utmost ease. Enjoy browsing through our listings and we hope to hear from you soon.

Current Market Activity (Annual 3rd Quarter)

Over the last few years the market has had some significant changes, initially for the worst but more recently for the better. Across the UK some of the areas have improved dramatically over others. The reason behind this is predominately supply & demand & most importantly location.

Within the Henleaze, Westbury Park & Westbury on Trym Areas during the 2nd Quarter of 2009 we noticed the demand picking up, this continued throughout the year which encouraged prices to began to rise.

The first & second Quarters have been extremely busy & the market has continued to rise, however, an increase in properties available at last which has given the buyers more choice & in turn gives us more revenue. The seasonal market always proves quieter in the holiday season, however with buyers keen to move by the end of the year we predict a very busy 3rd quarter for 2010

Latest Property Magazine

Our latest online magazine full of all our newest instructions has just been published

Every 2 weeks we publish our "Online Experience" magazine which shows all our latest properties both for sale and for rent. To view it and register for future editions to be delivered to your in-box, follow the link on the home page or visit http://bit.ly/5CBU3u

Estate Agents | Letting Agents