The Independent - Property RSS Feed

Five buyers chasing every property

Fri, 06 Nov 2009 08:56:01 GMT

There are five potential buyers chasing every property on the market as demand continues to outstrip supply, research showed today.

More homes sliding below £1m price mark

Wed, 04 Nov 2009 11:56:02 GMT

The number of homes worth more than £1m has fallen by a third during the past two years, research showed today.

Private Viewing: Pick of the property market

Wed, 04 Nov 2009 00:00:06 GMT

Selling houses: Time to import new ideas?

Wed, 04 Nov 2009 00:00:01 GMT

Should we change the way we buy and sell houses in this country? Some, including the top estate agents' and surveyors' trade bodies in the country, think the recession and ongoing housing slump present an opportunity to rethink the process.

House prices make small gains

Fri, 30 Oct 2009 08:37:23 GMT

Property prices rose by 0.4 per cent during October to take the annual rate into positive territory for the first time since last March, figures revealed today.

First Time Buyer: Eight starters for your attention

Wed, 28 Oct 2009 12:33:42 GMT

If you’re lucky enough to be able to get a mortgage or, even better, borrow from the ‘bank of mum and dad’, you’ll find a range of starter homes across the country, which just might tempt you into buying.

Sam Dunn: 'Can we remortgage without any equity?'

Wed, 28 Oct 2009 00:00:01 GMT

Question: We have an interest-only home loan, taken out in January 2008, but are concerned about the last year's fall in house prices. Our calculations suggest that the home we bought for £265,000 at a 90 per cent loan-to-value (LTV) is now worth £245,000. We're soon to remortgage and have little or no equity and worry there'll be no lenders to help us. Can we do can anything, or do we have no option other than to switch to a very expensive repayment loan? Lucy C, Leeds

How to weatherproof your home

Wed, 28 Oct 2009 00:00:01 GMT

Now that you've probably turned the heating on, and for the lucky ones, are thinking about lighting the open fire, you've probably started to notice all those unpleasant draughts that you've forgotten about from last year.

Energy suppliers in new online price war: switch today and save £248!

Wed, 21 Oct 2009 16:05:09 GMT

With online energy plans at their cheapest for 15 months, now is the time to bag yourself a top tariff. Here's how switching suppliers today could save you £248* this year...

Empty homes: Properties with potential

Tue, 20 Oct 2009 23:00:01 GMT

With first-time buyers struggling to get onto the bottom rung of the property ladder, 1.7m people waiting for social housing and a government planning to build three million new homes by 2020, you could be forgiven for thinking the average British street, close or avenue was full to bursting. It will no doubt surprise you then to learn then that, despite a housing crisis, over one in 20 homes lie empty. And that this month, for the first time ever, the number of residential properties that have been empty for six months or longer has exceeded one million.

“About 50 per cent are empty for transient reasons, such as the owner dying or having financial difficulties. However the other half are empty due to long-term failures such as abandoned regeneration schemes which leave compulsorily-purchased homes boarded up, blighting entire areas,” says David Ireland, head of the Empty Homes Agency.

“Most empty houses are privately owned. But the empty public sector homes tend to be concentrated and more obvious,” he adds.

The Empty Homes Agency is an independent charitable group campaigning for properties to be bought back into use. It has used data from councils, land registries and other charities to produce the one million total projection.

The largest numbers of empty homes are in north west and south east England, Yorkshire, Scotland and Northern Ireland but the problem afflicts every rural and urban area. For example in the Cornish villages of St Columb Minor and Trel

oggan, over 50 Ministry of Defence homes have been left empty after a local RAF base down-sized; while in the Anfield area of Liverpool there are over 2,000 empty homes as a result of a regeneration project that has been shelved.

The government’s approach has seen local authorities as the major vehicle for identifying empty homes and either encouraging their owners to bring them back into use, or taking more draconian measures to reclaim them.

In Devon, Exeter council and several local housing associations operate Exlet, where owners of empty homes are incentivised to let them out to those on the city’s waiting list for at least five years. In return for a management fee the owner gets guaranteed rental income, a pledge that the property is returned in good condition, and has maintenance checks.

Leaving aside the morality of homes lying empty in areas of housing need – there are over 6,000 households on Exeter council’s waiting list – the Exlet scheme emphasises how much owners lose by not letting their vacant properties.

“Owners can lose as much as £10,000 per year through lost rent, repairs and security measures, especially if the property becomes a target for vandals” says Laura Newton, the city councillor responsible for housing. Over 1,000 homes in Exeter alone have been coaxed into the scheme since it started in 1996.

Councils in Kent take a different approach, releasing funds directly to private owners to renovate their derelict properties and return them to the housing stock.

Richard Squirrel received an interest-free loan from Kent County Council to fit a new roof and windows, install central heating and re-wire his three bedroom house in Ramsgate, which had been empty since 2005. “The loan has made the difference from the house falling into further disrepair, and turning it into a new home,” he says.

Other Kent initiatives have included identifying an empty Thanet house with major structural defects. Its owner had died and after failing to trace his family members, the council effectively took possession of it using compulsory purchase powers. The house has now been transformed into four housing association apartments for sale.

Exeter’s and Kent’s activities are seen by the Empty Homes Agency as examples of how pro-active local authorities can combat the spread of empty homes, but they are the exception to the rule. A major hurdle for councils is that they must usually rely on the cooperation of owners, as more coercive measures are difficult to implement.

Small-scale initiatives on estates or single streets can be more cost-effective and quicker, says David Ireland. Self-help groups have sprung up in recent years, identifying empty homes and agreeing with their owners – individuals, councils or housing associations – that they would be rented at sub-market levels in return for the properties being renovated by volunteers, often including homeless people. The renovations are then funded by voluntary donations.

Canopy, a Leeds community group, has renovated nearly 40 homes across the city using 400 volunteers. While the East Cleveland Housing Youth Trust spends £10,000 to £15,000 on each empty property it renovates, and currently has 11 tenants. Other self-help groups exist in London, Middlesbrough and Hull.

“Councils have complexities that can be slow and expensive. These self-help groups are different, they seem to succeed despite the system,” explains David Ireland. “They may be the way forward.”

New home buyers push up mortgage lending

Tue, 20 Oct 2009 11:54:57 GMT

Strong demand from people buying a new home helped mortgage lending edge up by 2 per cent during September, figures showed today.

Sam Dunn: ‘Will noisy neighbours prevent us from selling our home?’

Tue, 13 Oct 2009 23:00:08 GMT

Question: We’re trying to sell our house and are very worried that our problem neighbours could scupper a sale; we’ve had constant issues over noise and rowdiness, as well a few personal run-ins, which we’ve let the council know about. Do we have to mention this to our buyer’s solicitor or in the HIP? We really don’t want to dredge up such a difficult topic to potential buyers. DV, Lancs.

Answer: No-one likes a noisy neighbour but nasty ones can do untold damage. When home life becomes unbearable because of rotten relations with next door, it can cause stress and sleeplessness. While Annual research by Halifax suggests as many as roughly one in six has suffered serious problems with neighbours this year – its highest number in 12 years and down to higher unemployment caused by the recession and a spike in short-term rental leases.

Excessive noise, vulgar or aggressive behaviour and ‘hijacking’ of boundaries through illegal building or structural work were the three most common causes of conflict, it found. You, at least, hope to move away from your nightmare neighbour but they could – still – sadly be disruptive: you’ve a legal duty to report their behaviour to any potential buyer. When you sell a house, a document called the ‘Property Information Form’ must be completed, says property lawyer Richard Atkins at Taylor Walton solicitors; this is where you must spill the beans. “In this form, in which you must give upfront information to the buyer’s solicitor, it poses a question about any disputes you may have had with your neighbours,” he says.

“While a few cross words won’t merit mention, any official complaints or disputes logged with the council must be included.”And although it may be tempting to omit details of disputes to protect your sale, warns Richard Morea at broker London & Country, any omissions could cost you.“

The form also states that the buyer is entitled to rely on the information you give, so leaving out potentially harmful information such as neighbour disputes, would leave you vulnerable to a claim of misrepresentation or breach of contract.” This is where it gets messy and see you end up in court.

First, if your buyer were to uncoversuch missing information prior to completion, they could refuse to complete the purchase - leaving you out of pocket.

Second, imagine the sale goes through and the buyer later runs into the same neighbourly difficulties you’ve encountered and subsequently discovers you withheld this in the forms – the actual cost of being caught withholding information can be considerable, Morea adds. “You’re faced with a tough situation, but the best course of action is to be honest, as by doing so you are more likely to see a sale,” says James Brooks at Kinleigh Folkard & Hayward.

Ikea: Flat pack and fabulous

Tue, 13 Oct 2009 23:00:01 GMT

Love it or hate it, there can’t be many of us who haven’t embarked on a trip round that winding yellow brick road in search of some cheap furniture from Sweden. This month Ikea is celebrating the 30th anniversary of its Billy bookcase, a plain – some say bland – set of shelves that has been designed to hold books. That’s what it’s for and that’s what it does.

Home interiors: The exhibitionist's shopping list

Tue, 06 Oct 2009 23:00:01 GMT

Major lenders cut mortgage rates

Tue, 06 Oct 2009 15:26:37 GMT

Three major lenders cut their mortgage rates today in a further sign that competition is creeping back into the market.

House prices rise for third month in a row

Tue, 06 Oct 2009 08:50:47 GMT

House prices rose for the third month in a row during September, increasing by a further 1.6 per cent, figures showed today.

House prices at highest level for a year

Fri, 02 Oct 2009 06:34:02 GMT

House prices rose for the fifth month in a row during September, pushing property values back up to levels last seen 12 months ago, research showed today.

Tony Blair selling constituency home

Thu, 01 Oct 2009 14:38:22 GMT

Tony Blair is selling his former constituency home for £300,000, it was announced today.

Sam Dunn: 'We're moving to London. Should we rent or buy?'

Tue, 29 Sep 2009 23:00:01 GMT

Question: We're a young couple moving to London and are desperate to know if we should rent for a while and see if the market falls any more, or go for it now and buy a two-bed flat straight away. We recently made a loss on a flat in Manchester and have been pretty scarred by it. Ally James, South Yorks

Online property search: The DIY sellers

Tue, 29 Sep 2009 23:00:01 GMT

Two summers ago, the rise of the estate agent seemed unstoppable. Branded cars and in-house coffee bars were de rigueur at agent offices, and sellers happily paid out for their services. But now a savvier breed of property owner is emerging – disillusioned by agency fees and the service they recieve, they are using the internet to cut out the middle man from the buying and selling process.

Oversupply in rental market 'beginning to stabilise'

Mon, 28 Sep 2009 06:48:14 GMT

The oversupply of properties in the letting market is beginning to stabilise as the number of people looking to rent a home picks up, research showed today.

Sam Dunn: 'What shall I do now my fixed rate deal is over?'

Tue, 22 Sep 2009 23:00:01 GMT

Question: I'm near the end of my cheap 4.49 per cent fixed rate mortgage deal and am very confused about whether to go for another fixed – more expensive now – or get a cheaper variable rate or tracker. Should I just go for the lowest rate I can get at roughly 75 per cent loan-to-value (LTV), given that the Bank base rate appears glued to 0.5 per cent?

Shared ownership: Chelsea pads going cheap

Tue, 22 Sep 2009 23:00:01 GMT

The signs are the housing slump is coming to an end, but green shoots of recovery aren't good news for everyone, especially first-time buyers desperately seeking to a foot on the lowest rung of the property ladder.

Slight slowdown in property market

Tue, 22 Sep 2009 09:28:27 GMT

The number of homes changing hands dipped slightly during August as the property market suffered its traditional seasonal slowdown, Government figures showed today.

'Tougher to secure buy-to-let mortgages'

Mon, 21 Sep 2009 16:07:55 GMT

Nine out of 10 landlords are finding it harder to get a mortgage than they did earlier in the year despite improvements to the wider lending market, research showed today.