News

HOUSING MARKET REPORT NOVEMBER 2009

Source: National Association of Estate Agents, November 2009

KEY FINDINGS

Number of house hunters registered per branch decreased from 294 in September to 287 in October
Number of sales agreed per branch decreased from an average of nine (8.5) in September to 8 (7.7) in October
Average number of properties available for sale per branch fell from 62 in September to 57 in October
Percentage of first time buyers (FTBs) fell from 26% in September to 22% in October
The gap between asking and selling prices has decreased with 10.9% in September to 8.75 % in October.

CONCLUSIONS

October was a relatively strong month and like September revealed a consistent demand for properties. It seems buyers are keen to take advantage of the Stamp Duty holiday before it ends in the New Year.

However despite these reasons for optimism, the level of housing stock available for sale per branch remained low. The number of properties available decreased from 62 in September to 57 in October.

This could reflect the fact that increased numbers of buyers are still working their way through the system and have not yet become sellers in their own right. It can be expected that this situation will correct itself as the market continues to revive.

The percentage of first time buyers also decreased slightly but remained at a reasonable level.

NUMBER OF HOUSE HUNTERS

The number of house hunters registered per branch decreased from 294 in September to 287 in October.

This month the number of house hunters dipped slightly but this is not a cause for concern. The market seems to be stabilising after an expected dip in August - a time when traditionally fewer people look to buy property - and from the bounce back in September.

The figure of 287 house hunters appears to show evidence of a strengthening market when compared to the 196 house hunters for the same month in 2008.

SALES PER BRANCH

The number of sales agreed per branch decreased from an average of nine (8.5) in September to 8 (7.7) in October.

Although average sales per branch have dipped slightly, this figure still averages out as an extra sale per branch when compared to the same period last year.

HOUSING STOCK

Average number of properties available for sale per branch fell from 62 in September to 57 in October.

The level of housing stock remained relatively low, with five prospective purchasers for every property. There is however, likely to be a backlog of buyers still waiting to sell their property once they have purchased their new home.

The NAEA strongly believes that the Government should scrap Home Information Packs because they are a significant disincentive to sellers considering a move.

FIRST TIME BUYERS (FTBs)

Percentage of first time buyers (FTBs) fell from 26% in September to 22% in October

The percentage of FTBs has fallen very slightly each month since it jumped up in August - it now stands at 22 per cent. However despite this small dip, there is still a real cause for optimism, and this can be seen by comparing the year previous. In general the demand for housing amongst FTBs remains very strong.

The NAEA has raised concern over the end of the stamp duty holiday in January which is expected to mainly affect first time buyers.

AVERAGE HOUSE ASKING AND SELLING PRICES

October 2009

Property type	Asking price	Selling price	Difference	% Diff
Terraced	£189,585	£176,727	£12,858	7%
Semi-detached	£241,209	£233,669	£7,540	4%
Detached	£369,687	£353,599	£16,088	5%
Premier	£759,002	£620,543	£138,459	19%

REGIONAL SUMMARIES FROM BRANCH CHAIRMEN AND OFFICIALS

Des Rowson, Essex

There seems to a mixed reaction to sales this month, some agents are reporting that they have had an excellent month whilst others are saying it has been mediocre. The majority are still saying that HIPS seem to be a major problem with vendors who are being frightened by the fees and information they need to have before marketing.

The information that the media is using, more often comes from the HIP providers telling us that HIPS have been welcomed by the public and accepted.

There are indications that agents are not sure the mortgage market is lending as freely as the media would have us believe - mortgage offers seem to be taking longer to process.

Lettings have been quieter this month with tenants renewing existing contracts without increase and there have also been fewer instructions despite landlords being incited back into the market with some interesting Buy to Let mortgage offers.

International sales have been slow with the Euro not being advantageous for purchasing but as this report goes to press the Euro is 1.1162 = £1 sterling so enquiries and sales could be better for next months report.

Richard Copus, Devon

The market down in Devon showed a marked improvement in September. It was the first month in 18 months when most sales were agreed with a minimum of negotiating with buyers.

There is a general perception that the worst is over and that prices can only rise from now on. There is no evidence of rises here yet, and national media statements exclaiming that prices have gone up X% do not help estate agents when advising vendors as to correct asking prices!

Prices have increased in the cities, but this distorts values elsewhere. A small part of London such as the London Borough of Bromley has a population of one million. This is the same as the number of people in the whole of Devon,

Add this to the fact that people change home more regularly in towns mean the published statistics bare little relevance to what's happening on the ground.

Steve Goddard, West Sussex

Strong viewings levels remain and the quality of potential buyers is good as many who are in rented now believe it is time to get on the ownership ladder again. Multiple offers on the same property are fairly common. There is not enough supply coming on to the market to satisfy the demand so it may stay that way for a while. It will be interesting to see how much the balance changes in the New Year.

Lettings activity definitely reduced and more choice is impacting slightly on rental levels. Landlords are slow to respond to the changes and risk longer void periods through being over-ambitious.

Trevor Kent, Bucks, Berks and Oxon

Whilst the leaves have been gently falling in our three picturesque counties during October, our prices have been gently rising to compensate. Sales have proved easier to make as buyers are about in some number but stock is low - offering them little choice, and decisions have had to be made quickly to avoid a competitor stepping in.

There will be some urgency in the month to come to ensure that contracted sales, and those about to exchange contracts, time their competitions before 31st December in order not to lose the temporary Stamp Duty exemption which will save some buyers up to £1,750.

Rentals in Berks Bucks and Oxon continue strongly with the public evermore conscious that using an NAEA or ARLA firm helps to guard against the selection of an unreliable tenant, and indeed the risk of an agent misappropriating rent or deposit monies. Asking rents have been less under pressure in October and landlords, by and large, have been pleased with both their returns and reduced voids.

Our BB&O members are hopeful that the Indian Summer weather for sales and rentals in October will continue well into November and, when all the leaves are finally all down, they will merely form a welcoming carpet for clients stepping into the market in early winter.

Michael Hack, Solent

The main problem we have found within our region is the lack of new instructions...that says it all !

Wendy Evans-Scott, Surrey

The market conditions in Surrey remain buoyant. There is still a lack of supply which is boosting prices and each new instruction creates a surge of interest and sometimes multiple offers. However, although there is a healthy supply of mortgage finance, it is still not that easy to obtain the mortgage monies. Valuers continue to be over cautious and seem blissfully unaware that the market has "legs" again!

As in many areas, foreign investors are currently seeing the UK market as a real bargain and as such are steaming in and buying up property. At the top end of the market there are signs that many wealthy owners are thinking of leaving the UK when the 50% tax rate comes into force, so we anticipate an increased supply of country homes.

In the rented sector, smaller properties are in demand with rent levels remaining firm; however the corporate lettings market is still fairly slow with a downward pressure on rents at this level.

Mark Bentley, Birmingham

I am pleased to report that the Midlands property sector continued to slowly improve during October.

Vendors are keen to secure buyers for their properties prior to the winter months and will sell for a little less than they had hoped for once a firm offer is made from buyers that can proceed.

Buyers are realising that if they want to buy a property at a very competitive price they should try and negotiate a purchase now before the end of the year before New Year optimism kicks in and prices begin to recover further.

The problem now facing buyers is that there is increasingly a shortage of suitable property available in certain price ranges. This shortage is slowly pushing property prices back up particularly in the lower and mid price ranges.

Agents are hoping the good level of activity in September and October will continue into November.

Ian Harris- Norfolk

As we approach the end of the year we now have 6 months worth of slowly improving housing market statistics behind us and it is revealing to look at how things have changed in the last 12 months.

Most agents across the county are reporting improved market sentiment and sales figures compared with the same period last year and are cautiously optimistic about the future.

Correctly priced "new instructions" are selling well and some "long-term vendors" have finally been rewarded for their persistence. In Norwich properties in virtually all sectors are now selling well to a range of different types of buyer.

The improvement seems far from a "smooth graph" with many agents experiencing busy and slack periods which one of my colleagues describes as "a curates egg .. good in parts!" This naturally gives rise to concerns about the strength of the recovery.

Given where we were a year ago most are happy with the sense of relief and optimism we now have.

So what of the next few months? Further improvements in mortgage lending will be universally welcomed to smooth the path to recovery.

Great Yarmouth has enjoyed significant investment with the creation of a new off-shore harbour which I likely to have a positive effect on the economy and property market in the future.

Generally, given the low volume of transactions over the last two years, it appears that many have put off making moves they would have naturally. Greater market confidence and easier funding will help these would-be movers, help the market and the general economy.

The latest Base rate decision

Source: MAB, August 2009

Cherise Conners from Mortgage Advice Bureau comments on the latest decision by the Bank of England's Monetary Policy Committee (MPC) to hold interest rates at 0.5%, a decision that comes as no surprise to most analysts.

"It was widely predicted that there would be no change to the Base rate (BBR), and it is expected that it will remain at current levels for the remainder of this year and possibly into early next. The MPC have though it seems, surprised a number of economic pundits by announcing that rather than calling a halt to the recent programme of quantitative easing (QE) (this effectively involves the Bank buying corporate and government bonds), they are to increase the level of money being pumped into the economy by a further £50bn over and above the £125bn already spent.

"When asked recently if the process was having a material effect on the performance of the economy the Governor of the Bank of England was reported to have replied it was too early to tell and the answer was unlikely to be known for 6 to 9 months, but he was also reported to have said that he was not disappointed by its effects.

"This increase in the QE process seems to imply that in spite of a number of more positive reports emerging in recent weeks concerning the wider prospects for the economy, the MPC feel that more stimulus was required, and that to suspend the programme now was a bigger risk than to continue to pump in further funding.

"We are starting to see a number of slightly more encouraging economic indicators, for example, a recent survey from the Chartered Institute for Purchasing and Supply, showed the service sector growing at its fastest for 18 months. At the same time, house prices are now rising, according to the latest survey from the Halifax, while recent surveys by Nationwide and the Land Registry also suggested prices were increasing slightly. Although GDP has contracted by near record amounts, the rate of contraction is forecast to slow with a return to growth still being predicted early in 2010.

Cherise Coners is from Mortgage Advice Bureau based at Michael Poole, Myton Park, Ingleby Barwick TS17 0WA. To make a no obligation appointment to see how the latest base rate decision affects you call 01642 763636 or email cherise.conners@michaelpoole.co.uk. To listen to a podcast from our industry expert visit www.mortgageadvicebureau.com and click on MAB-TV on the home page.

Your home may be repossessed if you do not keep up repayments on your mortgage.

A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £95.

Comment following the BBC Look North Business undercover report

Source: NAEA, August 2009

Comments from Peter Bolton King, Chief Executive of National Association of Estate Agents (NAEA) on racial discrimination in lettings agencies, following the BBC LookNorth Business undercover report:

"NAEA is committed to setting the highest standards for lettings professionals, for the benefit of both the general public and the wider industry.

"NAEA members must comply with our Rules of Conduct. Our Code of Practice for Lettings Agents makes it very clear that any form of discrimination is unacceptable and will not be tolerated:

Rule 1e states "You must offer equality of professional service to any person, regardless of their race, religious belief, gender, sexuality, disability or nationality. You must not be involved in any plan or arrangement to discriminate against a person or people because of their race, religious belief, gender, sexuality, disability or nationality."

"Racial discrimination is appalling behaviour, which may be illegal. A letting agent simply cannot assist a landlord with refusing a tenant due to racial motivations.

"NAEA has asked the BBC to share any information it has that indicates misconduct by NAEA members. NAEA may take disciplinary action, which could lead to membership being withdrawn."

House Sales up 43%

Source: Michael Poole, August 2009

Michael Poole, the Tees Valley Property Consultants with 6 branches across the area have reported agreed sales up by some 43% against the same period during 2008.

Michael Poole, Senior Partner, said "it was clear during the start of 2009 that the level of viewing activity was on the increase, in the last 3 months we have seen a significant increase in sales agreed and a significant decrease in abortive sales i.e. sales agreed but fall through prior to exchange of contracts.

All in all, the market is showing significant improvements". The agency further reports a reduction in the amount of new properties coming onto the market. Michael Poole stated "this appears to be a national trend also and could lead at some point in the future to pressure on pricing. However, there are still a limited number of first time buyers coming into the market having regard to the high deposits required".

MORE MOTIVATED SELLERS AND BUYERS COULD INCREASE MARKET ACTIVITY THIS SUMMER

Source: The Home Sale Newtwork, July 2009

A recent Home Sale Network survey indicates that market activity continues to increase month on month with statistics pointing towards the majority of vendors being motivated sellers and buyers looking to "trade up".

63% of Home Sale Network members have reported that there was an increase in market activity in June 2009 over May. This is the sixth consecutive month that survey respondents have indicated this trend.

Over half (59%) of Home Sale Network respondents indicate the most common buyer type agreeing sales are "trade up" purchasers. This supports the survey's findings that 57% of the Network believe the most common type of seller among current vendor profiles is also 'trading up.'

However in contrast, 20% of Network members report that June's agreed sales fell compared to the previous month and 38% respondents indicated the most common type of sellers are non-aspirational i.e. divorce, death, repossession or downsizing.

When asked what is the single most important factor that could inhibit the current market, 35% believed it would be a lack of new housing stock, with another significant proportion of the survey (31%) pointing to a lack of mortgage finance as the most inhibiting reason. Interestingly, only 3% of Home Sale Network members think that concerns about further reductions in prices could hinder the UK property market, which would seem to indicate property prices are beginning to stabilise.

Mr Michael Poole from Michael Poole Estate Agents, the member of Home Sale Network in Teesside said, "With Home Sale Network's monthly survey indicating that June's agreed sales have increased compared to the previous month and a significant proportion of buyers and sellers are trading up, there appears to be a gradual improvement in market activity.

"The decision to restrict mortgages so severely is rooted in self interest. The Government must do more to put pressure on those banks that are refusing to lend, while highlighting those banks that are easing restrictions to help get the economy moving again.

"Although a lack of mortgage finance seems to be a significant inhibiting factor at this time, a lack of housing stock also appears to be important, with the latter indicating that the next few months continue to look like the right time to sell a home."

For further information contact Mr Michael Poole on 01642 254222 or by email mike.poole@michaelpoole.co.uk

STUDIES PAY OFF FOR MICHAEL POOLE PROPERTY AGENT

Source: Michael Poole, July 2009

A Middlesbrough based estate agent has joined an elite group by becoming one of the first practitioners in the UK to achieve the profession's top vocational qualification.

Richard Poole of Michael Poole Property Consultants is one of only a handful of agents across the country to be awarded the National Federation of Property Professionals Diploma in Residential Estate Agency (DipREA)

NFOPP, the umbrella body for five of the leading professional bodies representing those who work in the property sector, launched the DipREA as part of its drive to raise standards and recognise excellence.

Richard Poole who has worked in the industry for 10 years and is now a partner at Michael Poole Property Consultants, studied for more than 350 hours, and passed four rigorous examinations as well as completing a 6000 word dissertation in 'Promotion & Marketing' to secure the qualification.

Ruth Lilley, head of membership and professional development at NFOPP, said: " I heartily congratulate Richard on his achievement. The Diploma is our highest level qualification and one that carries real weight. The award is tangible evidence of a commitment to best practice and the highest standards of professionalism and I am delighted to say that we are now showing a growing surge of interest from agents in other parts of the country to follow his example."

NFOPP was created with the merger of the National Association of Estate Agents (NAEA), The Association of Residential Lettings Agents (ARLA), The National Association of Valuers and Auctioneers (NAVA), The Institute of Commercial Business Agents (ICBA), and the Association of Professional Inventory Providers (APIP)

The organization is recognised by Ofqual, the Office of Qualifications and Examinations Regulator, as an independent awarding body, and all its qualifications are Ofqual accredited.

PUBLIC ANGER AT BANKS REFUSAL TO LEND

Source: NAEA, July 2009

THE British public is furious with banks and building societies for preventing home ownership, a poll commissioned by the National Association of Estate Agents (NAEA) reveals.

The independent survey of 1800 people found that more than half - 58 per cent - believed banks must begin lending more if the UK is to pull out of the property slump.

Almost a quarter of people - 22.5 per cent - said that they were unable to find a mortgage that they qualified for anywhere in the market.

And 56 per cent of those polled believed that a combination of relaxed restrictions and lower deposit requirements would increase the chance of them buying a property.

Peter Bolton King, chief executive of the NAEA, warned that banks risked stifling the market's recovery and that the Government should pressure them into lending.

He said: "We cannot let the banks convince us that shutting up shop when it comes to mortgage lending is a responsible move.

It is time to accept that responsible lending to responsible people is necessary for the country.

"It is no secret that many people consider bankers to be responsible for the mess the economy is in. The very least they should do is to take appropriate steps to help us to recover."

NATIONAL ASSOCIATION OF ESTATE AGENTS HOUSING MARKET REPORT

Source: NAEA, May 2009

KEY FINDINGS

Number of house hunters registered with estate agents increased from 265 in April to 299 in May
Number of sales agreed per agent remained high for second consecutive month with ten in May
Average number of properties available for sale decreased from 76 in April to 69 in May
Number of first time buyers (FTBs) increased to 43% in May - a significant increase on last month's 23%
The average selling price across all house types in May was 6.3% lower then the actual asking price

Click here to view full article

IMPROVING PROPERTY MARKET MAKES THIS SUMMER A GOOD TIME TO SELL

Source: Michael Poole, May 2009

This summer could be a good time to sell your home according to a recent Home Sale Network member survey, which indicates further improvement in the property market since the start of the year, with some estate agents reporting a growing shortage of homes to sell.

There are indications from a recent Home Sale Network report that this summer could be a good time to sell your home. 79% of Network members surveyed indicated that enquiries from buyers increased in April 2009 when compared to March. The survey also reported a 64% increase in the number of sales being agreed in the month of April over March.

When asked about the time taken to sell properties, 69% respondents indicated that the time had reduced; 55% reported this was “somewhat reduced” while 14% indicated in their market the time to sell had “significantly reduced”. A further 30% of respondents reported that for them, selling times remained the same in April when compared to earlier this year.

Perhaps more significantly, this increase in market activity has left some Home Sale Network members with fewer homes to sell. 52% of those surveyed reported the numbers of properties on their books had reduced by 1-25% and a further 23% indicated the stock of homes was down by over 25%.

Mr Mike Poole from Michael Poole Property Consultants the member of Home Sale Network in the Tees Valley said, “With the increasing number of buyer enquiries, coupled with a higher number of sales being agreed in April compared to March we are seeing further encouraging signs within the property market in this area. “A reduction in the availability of homes as a result of more sales in reduced time periods could mean that this summer is a good time to sell your home. “We would urge anyone thinking of moving to consider that competitively priced homes are selling and vendors can often benefit from the price reductions available on the home they wish to purchase.”.

Reliable independent mortgage advice in Cleveland

Source: Mortgage Advice Bureau, May 2009

Mortgage Advice Bureau, is pleased to introduce Cherise Connors an adviser with over 18 years experience located within Michael Poole Estate agents.

Independent mortgage adviser Cherise Connors comments, "It has never been more important than ever that people seek independent and impartial advice. Whilst I'm sure many people will have thought about their budget seeing an independent mortgage adviser and being qualified for a mortgage prior to reserving your home, can put you in a much stronger position.

"I can also offer protection products from a choice of insurers, giving customers peace of mind, but equally importantly, making sure they are able to keep their home should the unexpected happen. " Cherise continues "Good customer service is very important to me . By understanding my client's needs I can make recommendations as to what's most suitable for them, arrange all the paperwork, manage the application and liaise with the lender throughout to make the process as smooth and stress free as possible. If you would like a mortgage review, please don't hesitate to call as I would be only too delighted to help."

To make a no obligation appointment please call Mortgage Advice Bureau on 01642 683031, call in to 36 Myton Road, Ingleby Barwick , email cherisec@mab.org.uk or visit www.mortgageadvicebureau.com/michaelpoole for more information.

Your home may be repossessed if you do not keep up repayments on your mortgage. A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances.

A typical fee is £95.

NATIONAL ASSOCIATION OF ESTATE AGENTS
HOUSING MARKET REPORT
APRIL 2009

National Association of Estate Agents Press Office
020 3128 8181
press@nfoppmedia.com

CONCLUSIONS

The National Association of Estate Agents Housing Market Survey for April 2009 showed some positive indicators.

While house prices continued to fall, the number of sales per agent - already at a high, increased substantially to around ten per agent on average. This is great news for estate agents and the property market as a whole.

The number of people registering for property fell slightly - but this figure should be taken in the context that it rose by 12 per cent last month. The overall figure for April therefore still remains high and positive.

For the fourth month in a row the percentage of overall sales being made by first time buyers held at a healthy level. This information, first pointed out by the NAEA, has been backed up by other measures in recent months and demonstrates that confidence is returning to the market after a period in which potential buyers were holding off from trying to enter the market.

Click here to read the full article

THE MARKET IS UP

Source: Michael Poole 5 May 2009

Michael Poole, the Tees Valley Estate Agency have experienced a 30% increase in sales agreed compared with the same period in 2008. Michael Poole, Senior Partner said

"the sales figure has been boosted by a reduction in the number of fall downs, that is the number of sales agreed which subsequently do not lead to exchange of contracts and the buyers or sellers subsequently withdraw from the transaction. This upturn is indicative that buyers are now searching the market for suitable mortgage finance and have the confidence to complete their purchase".

INCREASE IN MORTGAGE APPROVALS HELPING PROPERTY MARKET BUT HIPS CHANGES MAKE LITTLE IMPACT

Source: Michael Poole 20 April 2009

Good news for the residential property market is reported in a recent Home Sale Network member survey that indicates the increase in mortgage approvals is helping new sales. In contrast respondents report little impact on the market of the recent HIPS changes.

Increases in both buyer enquiries and sales agreed were reported for March 2009 according to a survey conducted by Home Sale Network, the national network of independent estate agents, in early April.

86% of survey respondents indicated increased buyer enquiries in March 2009 over February and 77% reported an increase in the number of sales agreed in the same period.

Perhaps more significantly, when asked whether members had seen any evidence of the reported increase in mortgage approvals; 30% said they had and more sales had resulted. 24% indicated there was some evidence of an increase in approvals but this had not impacted sales, while 40% indicated that mortgages were still difficult for buyers to obtain. The remaining 6% of respondents had seen no evidence of an increase in mortgage approvals in their area.

In contrast when asked about the impact of adding the new Property Information Questionnaire (PIQ) to the HIP and the end of the first day market concession, 67% of respondents indicated that this action had had no impact on the market in their area. 20% said they had seen a rise in instructions in March before the first day marketing concession ended and the remaining 13% reported that the inclusion of the new PIQ is deterring would be sellers in their area.

Mr Poole from Michael Poole Property Consultants, the member of Home Sale Network in Teesside said, "We saw a further increase in both buyer enquiries and sales agreed during March. We continue to be encouraged by these signs of movement in the market and believe that further increases on mortgage approvals over the coming months will have a positive impact on property sales in Teesside."

Is the Market Set to Recover?

Source: Michael Poole 20 March 2009

Michael Poole, the leading Tees Valley Estate Agents have reported a significant increase in activity within the property market as we end the first quarter of 2009. The agency which has 6 offices across the Tees Valley reports a 20% increase in negotiated sales against the same period in 2008.

Michael Poole, Senior Partner in the practice said "You can only keep the lid on the property market for a limited period of time and it seems that this sector is recovering from the recession ahead of other businesses. My offices have seen a significant increase in viewings which in turn leads to agreed sales. Indeed, my Ingleby Barwick office has seen an increase in some 250% on the number of sales agreed so far this year compared to the same period in 2008. This is a significant turn around. Buyers are now aware of their requirements in terms of finance and those sellers who are prepared to bring their property on the market at a realistic asking price will achieve a sale

Returning confidence must be converted into sales

Source: NAEA 13 March 2009

“The NAEA's own figures revealed that since January, first time buyers are coming back to the market, with enquiries up by about 20 per cent. These are people who want to buy property, are visiting agents and are searching websites like Propertylive.co.uk.”.

“It is crucial that they are able to translate this returning confidence into completed sales. It may be that these figures reflect the time lag between new enquiries and completions - otherwise it is damning evidence that more must be done to help first time buyers.“

NAEA COMMENT ON RIGHTMOVE PRICE INDEX FIGURES

Source: NAEA 16 February 2009

Following the publication of Rightmove's housing price index, which showed a 1.2 per cent increase in asking prices, NAEA chief executive Peter Bolton King said:

"It is too early to say whether this increase in property prices, picked up by several organisations including the NAEA, will continue. The NAEA believes that it reflects that in certain areas the downturn is slowing and hopefully beginning to bottom out, as opposed to heralding the end of the housing slump.

"What is clear is that if confidence is returning to the market in any form, it is the job of the Government and the major lenders to try responsibly to sustain it. The NAEA believes that a complete suspension of stamp duty from the Government, and increased availability of mortgages from the banks, would achieve this."

Latest Base Rate cut to 1% - Why now could be the right time to move your mortgage

Source: MAB 9 February 2009

Mike Poole from Michael Poole comments on the latest decision to cut the Bank of England Base Rate to its lowest rate in history of 1% and why staying on a standard variable rate may not be the best option.

Given that the base rate, and therefore in most cases Lenders' Standard Variable Rates (SVR), have fallen to unprecedented levels in recent months, it might be tempting to stay on a standard variable rate, and moving away from that rate may not seem like the most logical option. However, there are some good reasons why moving your mortgage now would benefit you in the long run, even though you may have to pay an early repayment charge to your existing lender if you re-mortgage.

If the current trend of falling house prices continues, home owners will find that their Loan To Value (LTV) will increase - the loan amount as a proportion of the property value. As most lenders have mortgage interest rates that are tiered dependent upon the LTV e.g. typically 60%, 75% and 85% LTV, the longer borrowers leave it before fixing their mortgage they could find themselves having access to fewer mortgage products when they do decide to re-mortgage.

As we are likely to be getting towards the floor in the interest rate market borrowers will have to consider how much further they believe interest rates will fall and potentially whether to provide themselves with some security by locking into a fixed rate. Even if the BBR falls further - perhaps below the 1% level the price of fixed rate mortgage products is unlikely to see further similar reductions. Borrowers therefore considering moving home or those re-mortgaging should now seriously consider investigating the opportunities that the current very favourable pricing conditions offer. Although we are likely to be in a low interest rate environment for some time yet it is likely that interest rates will rise in future - and possibly as sharply as they have recently fallen - as and when the economy starts its recovery.

Mortgage rates currently are at an historic low. Fixing your mortgage now will ensure that your payments can be kept low into the foreseeable future. This is a benefit in itself but also enables you to budget for the long term, and through what are likely to be turbulent times. Borrowers whether on their lenders SVR or tied into an existing fixed rate should consider impartial independent mortgage advice to see if re-mortgaging now can really be of benefit to them, or just to discuss their options, for now or in the future.

For more information contact an Independent Mortgage Adviser at Mortgage Advice Bureau for further information.

Your home may be repossessed if you do not keep up repayments on your mortgage.

A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £95.

To make a no obligation appointment, please call Mortgage Advice Bureau on: 01642 254222

First Time Buyers Finally Find Hope in the Housing Market

Source: NAEA 5 February 2009

The proportion of first time buyers (FTBs) looking to put a foot on the property ladder more than doubled in the first two weeks of 2009, according to the NAEA.

22.5 per cent of registered buyers were FTBs, up from 10 per cent in December and 14.5 per cent in January 2008.

Peter Bolton-King, CEO of the NAEA, said: “This figure is highly significant in terms of demonstrating an increase in consumer confidence. The NAEA views FTBs as the bedrock of a healthy housing market.

“During the boom years we saw the number of FTBs as a proportion of buyers rise as high as 37 per cent, and I believe that an average of 25 per cent is indicative of a healthy and confident market."

He added: “While the figure of 22.5 per cent is definitely not a sign that the housing sector is out of the woods yet, it does suggest that those infamous green shoots of recovery may not be as far off as first thought.”

Figures from a national survey of the NAEA’s 14,000 members also demonstrate that second time buyers are determined to try to bag a bargain.

Agents reported a flurry of activity in the first two weeks in January, with an average of ten new sellers per agent. Agents made an average of four sales in the first two weeks of January – compared to a monthly average of six in November and December 2008.

55 per cent of those looking to buy in the first two weeks of January came from this market segment. Buy to let investors made up 22 per cent of the market – indicating bricks and mortar remains a sound investment, particularly with interest rates falling.

Peter Bolton-King said: “These statistics are evidence that consumer confidence is slowly being restored but I must counter this by saying that unless lenders respond to consumer demand, then any green shoots will wither and die on the branch.”

NAEA – MUM AND DAD HAVE BECOME THE LAST LENDERS STANDING

Source: NAEA 5 February 2009

Following the Bank of England Monetary Policy Committee’s decision on interest rates, Peter Bolton King, Chief Executive of the NAEA, said:

“Interest rates are becoming a distraction for consumers and business alike. A cut does not help house hunters if major lenders do not pass it on – it simply increases the pain for savers.

“The reality for many first time buyers in Britain today is that the only bank that will help with a deposit is the Bank of Mum and Dad. The NAEA knows that there is a huge demand for property out there and that potential first time buyers are exploring the market in larger numbers than we have seen for months.

“However, that will not translate into sales and bring the confidence needed to get the market moving again, when the only people willing to give a foot up onto the housing ladder are parents.”

Tenancy Deposit Protection Withdrawn From Unregulated Letting Agents

Source: NAEA 13 January 2009

At the insistence of their insurers, The Tenancy Deposit Scheme will only provide deposit protection and alternative dispute resolution to letting agents who are members of recognised professional bodies.

From April 6, only regulated letting agents and corporate and individual landlords will be covered by the Tenancy Deposit Scheme and cover will be withdrawn from unregulated agents. Tenants are advised to ensure their landlords have made alternative arrangements to safeguard deposits as soon as possible.

The Scheme advises landlords and tenants to be certain that their lettings agents are members of either the Association of Residential Letting Agents (ARLA), The National Approved Letting Scheme (NALS), the National Association of Estate Agents (NAEA), or the Royal Institution of Chartered Surveyors (RICS); or that deposits are protected under one of the other government authorised deposit protection schemes: Tenancy Deposit Solutions (trading as mydeposits.com) or The Deposit Protection Service.

The Tenancy Deposit Scheme is writing to all current tenants whose tenancy is shown to have been arranged through an unregulated agent to advise them of the change in protection that can be offered and the course of action to take to ensure protection as the law requires. The agents concerned should advise their tenants and landlords of what they intend to do on their behalf.

The Tenancy Deposit Scheme regrets the action it has been forced to take, but points out that it is due to circumstances that are well beyond its control.

Media Contact: Malcolm Harrison - 020 7581 8335

NAEA - GOVT MUST SEIZE OPPORTUNITY TO OPEN DOOR TO RECOVERY

Source: NAEA 8 January 2009

Following The Bank of England Monetary Policy Committee's decision to cut the rate of interest to its lowest ever level, Peter Bolton King, Chief Executive of NAEA, said:

The fact is that without the major lenders passing on this cut, and without stronger commitment from the Government to fully address the problems of the housing market this cut is practically an exercise in spin.

The MPC and the Government continue to pat themselves on the back while hardworking families across the country increasingly fear for their futures.

What is particularly frustrating is that it is evident that there is a pent up level of demand among first time buyers that if released could provide the stimulus needed to kick-start the housing market.

If the major lenders commit to passing on this cut, and the Government suspends stamp duty, we could open the door to recovery.

Welcome to 2009!

5 January 2009

NOW is the right time to buy or sell with lots of choice on the market and prices relatively stable. I do hope you will find your 'dream home' within our property search.

Thinking of selling in 2009? Don't waste anytime and get your home on the market now.

LOWEST BASE RATE SINCE 1951

5 December 2008

Brian Murphy , Head of Lending at Mortgage Advice Bureau comments on the Bank of England’s decision to decrease the base rate to 2%.

“With today’s interest rate decision pushing the base rate ever closer to the 0% mark, borrowers currently on tracker mortgages will receive an early Christmas present in the form of this month’s 1% rate cut. However, unless lenders pass the cut on, few other borrowers will benefit from today’s news.

“Interestingly, the minutes of last month’s decision show us that a 2.5% cut was actually considered in November but refrained from in case it spooked the market. Instead of being heralded as another drastic move by the Bank of England’s Monetary Policy Committee (MPC), today’s cut simply takes us back to the levels that the MPC originally considered imposing four weeks ago.

“Many lenders did pass on last months full 1 ½% point cut but we will have to wait to see the stance individual lenders take this time around. The last few weeks has seen some fairly competitive pricing of fixed rate mortgage products, and we are starting to see small signs that confidence is returning to the mortgage market. We await developments to see if this trend continues following today’s further reduction in the base rate.”

The Mortgage Advice Bureau based at Michael Poole Property Consultants . To make a no obligation appointment call 01642 254222 .

Your home may be repossessed if you do not keep up repayments on your mortgage.

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