News
South east Top of Housing Market
MP's Housing Perks
Rise in £1m Sales
Buy To Let investors 'snap up home in London'
Landlords Optimistic
71% of landlords admitted to being optimistic about next year’s prospects and considered them to be good or even very good.
75% of landlords say they made a profit and 22% will be able to save some of this income.
Most considered London to be the best area for rental yields as they could be four times higher than the southeast of England.
Selling to Cost Double
According to the Office of Fair Trading those selling property that sign up to ‘sole agency’ agreements must be aware of the fact that they could end up paying twice to sell their property.
A ‘sole agency’ agreement allows estate agents to claim their fee even though another estate agent sells the property or the seller finds their own buyer via the internet.
Some property retailers dealing over the internet say they are not estate agents but in the eyes of the Office of Fair Trading they are deemed to be and this fact could be an important factor to those selling through s sole agency agreement with an estate agent.
Buyers benefit from more London property
Landlords looking to become buy-to-let investors in the London area had more choice in April as an influx of new properties came onto the market.
This is according to new figures from estate agent haart, which put the number of new homes entering the market in April at 20 per cent higher than in March.
At the same time, the average London house price rose by 0.6 per cent - slightly down on March's one per cent growth - from £264,636 to £262,989.
Chief executive of haart Paul Smith said that confidence in the market had remained high, despite expectations of a further interest rate rise at the beginning of May.
He commented: "With increasing numbers of sellers putting their property on the market to beat the introduction of home information packs (Hips) on June 1st, the supply and demand imbalance has been slightly addressed, giving buyers more choice."
However, he added that overpriced properties were not selling in April.
Many analysts, including the National Association of Estate Agents, believe that the period after the introduction of Hips could see a slowing in the amount of properties coming onto the market, which may push up house prices.
Landlord Mortgages “Landlords have struggled to find affordable housing and this has been driven by a lack of supply. Whilst short supply can be great for Buy To Let capital appreciation is does not help the landlord find his or her next Buy To Let.”
LettingAgent.com “We as Letting Agents are finding that rents achieved are higher than a year ago and properties let faster.”
'No evidence' of pre-Hips property influx
No evidence has been seen of an influx of people selling properties now to avoid the launch of Home information packs (Hips) in June, estate agents have claimed.
Sequence estate agents says that contrary to reports from other bodies, the expected flood of people looking to sell properties is "yet to materialise".
The group, which operates under trading names including Allen & Harris and William H Brown, said that the number of properties coming onto the market this year, including the first few days of May, is very similar to the same period last year.
Operations director David Plumtree commented: "We've yet to see any significant evidence directly linking the introduction of Home information packs on 1st June 2007 with an influx of instructions in May to avoid paying the cost."
He added that there was some evidence though, that Hips may be having an effect on houses in London and the south-east, where an increase in properties coming onto the market was seen in early May.
The Royal Institution of Chartered Surveyors reported that the number of new properties coming up for sale did increase in April due to Hips, the second consecutive increase, but that house prices are still rising.
Landlord Mortgages “Landlords are generally not interested in such formalities as whether sellers will be providing Home Information Packs.”
London property investors 'gain £180 a day'
The asking prices for property in Greater London have reached a new record level following the latest monthly rise of 1.5 per cent, it has been reported.
According to the most recent Home. Asking Price Index report, the value of a typical home in the capital - not including properties worth more than £1 million - is £336,900.
The firm noted that despite base rate rises, London asking prices are growing "relentlessly", with the average property owner gaining around £180 in capital value every day, news that may be of interest to buy-to-let investors.
It stated that house prices rose more than 14 per cent in the last year, with competition for London property overspilling into the south-east, where property can seem like relatively good value.
Doug Shephard, business development director for Home., said: "Asking prices are going ballistic and thus far we see no signs of a slow down in this market despite growing pressure from interest rates."
The firm noted that asking prices last peaked in July 2004, after buyers were priced out of the then-overheated property market, a correction that ended with a "soft landing" 12 months ago.
Recent figures from the Department for Communities and Local Government put annual house price growth in London at 13.9 per cent in March.
Landlord Mortgages “Property Investors in London are experiencing continual growth as migration from Eastern Europe gathers pace. London is the hotspot and the magnet for Europeans from Bulgaria, Slovakia, Poland, Lithuania and the Czech Republic.”
© See Terms and Conditions
