The Land Registry has announced that it is making it easier to register a property in England and Wales.

It is to become the sole registering authority for Local Land Charges (LLC) in England and Wales, leading to a standardised national fee for the first time and an end to the existing ‘postcode lottery’.

It said that the changes will also lead to an improved, standardised and digital service and will result in better access to property information and a more streamlined conveyancing process.

Preparatory work will begin from April 2015 for a phased migration of the LLC service to begin later that year.
The announcement was made as Land Registry unveiled the results of its consultation into extending its powers and assuming statutory responsibility for a digitised LLC register for England and Wales.

‘The proposals will provide a one stop shop digital LLC search service, which will improve and standardise the service through faster turnaround times. This is consistent with government’s digital by default agenda and will ease the process of buying property,’ said Ed Lester, chief land registrar.

‘We have listened to the consultation feedback on LLC and have made a number of changes to the original proposals. For example, the period covered by a LLC official search will not now be limited to 15 years,’ he added.

The proposals support wider government priorities to improve the ease of registering a property in the UK, digitise government services and make public data more easily accessible for the benefit of the wider economy.

At present, local land charges are maintained and delivered by each of the 348 local authorities. Fees vary between £3 and £96, with a turnaround time of between one and 42 days. More than one million local land charge searches are undertaken annually by conveyancers as part of residential and commercial property transactions and remortgages.

The necessary changes to the Land Registration Act 2002 and Local Land Charges Act 1975 were referenced in the Queen’s speech and will form part of the proposed Infrastructure Bill which is expected to complete its passage through Parliament by March 2015.

These measures are separate to the consultation on the future commercial model of Land Registry. No decision has been made yet and the Government will publish its response to the public consultation shortly.

UK house prices increased by almost 10% in the 12 months to April 2014, up from the 8% annual amount recorded in the previous month, according to the latest published index.

Overall nationwide price growth was 9.9% and the data from the Office of National Statistics confirms that London has been leading the growth at 18.7% with a rise of 8.9% in the South East and 8.5% in the East of England.

House price annual inflation was 10.4% in England, 3.3% in Wales, 4.8% in Scotland and 2.6% in Northern Ireland. Excluding London and the South East, UK house prices increased by 6.3% in the 12 months to April 2014 and on a seasonally adjusted basis, average house prices increased by 2% between March and April 2014.

In April 2014, prices paid by first time buyers were 10.7% higher on average than in April 2013 while for existing owners prices increased by 9.5% for the same period.

More recent data, notably from the Nationwide Building Society and Rightmove suggest that the growth in London is now slowing. Knight Frank has also said that it expects price growth in some London markets to slow and even stall in coming months.

Peter Rollings, chief executive officer of Marsh & Parsons, believes that a turning point has been reached. After a very lively start to the year, where an acute lack of supply and subsequent competition for homes pushed prices higher, we’re now sailing into steadier waters,’ he said.

‘Stricter controls for mortgage affordability and the renewed housing stock is moderating the market and property price growth has slowed. As a result, in prime London the ratio of registered buyers per available property has fallen from 24 in January 2014 to 16 in June, so as the market returns to more normal trading conditions, buyers can make the most of the extra breathing space,’ he explained.

‘London has long been akin to its own city state, and is wholly unrepresentative of the broader nationwide picture. If the government or the Bank of England were to slam their foot on the brake too heavily, they risk setting back the emergent housing market recovery outside of the capital. In his Mansion House speech, the Chancellor indicated that he will not tinker with the Help to Buy scheme, which is buoying the lower end of the market and helping redress the imbalance across the country,’ he added.

Oliver Atkinson, director at online estate agent urban sales and lettings, said it is too soon to say that the market is cooling. ‘There is no let down in demand as first time buyers and second steppers continue to make strides in the property market across the country. Thanks to a gradual improvement in consumer confidence, discerning first time buyers are saving harder and borrowing more to pay a higher price for their property,’ he pointed out.

He also pointed out that the long term effects of the recently introduced MMR lending rules will now be the real test…

London’s prime residential lettings market witnessed an increase in activity in the first quarter of the year with agreed lets 6.2% higher and newly registered applicants up by 7.7% compared to the same period in 2013.

However stock levels decreases, down 22.5% compared to the first quarter of last year which means tenants no longer have the same degree of choice, according to the latest residential lettings report from Chestertons.

This has been predominantly caused by the increase in numbers of landlords selling their properties to benefit from the high capital values at present, the firm said.

It also means that tenants are no longer in a position to negotiate on rental prices and rates are set to rise with the firm forecasting rental growth of 2% this year for the prime London lettings sector.

Overall the report says that with the economy showing signs of improvement and employment in London having risen by 2.9% over the past year, relocation agents registered an increasing demand although budgets remain constrained.

The Chestertons Prime London Rental Values Index recorded a fall of 1% in the year to the end of March 2014 although certain submarkets show significant variations such as Camden with a fall of 6.6% and Kensington down 4.3%.

The average weekly rent for the index stood at £907 at the end of March. The highest average weekly rental values were achieved in St John’s Wood at £1,872, Knightsbridge/Belgravia at £1,806 and Mayfair at £1,677.

The report also shows that the buy to let sector is continuing to grow with February 2014 seeing a 39% increase in buy to let loans compared to the same time last year. Re-mortgaging made up half of this figure whereby lending applications for house purchases were up 58%.

London maintains its appeal to foreign investors and saw Chinese state owned Greenland Group invest £1.2 billion to purchase two major London development opportunities: Ram Brewery in Wandsworth to create 661 homes and a 98,000 square metre site in Canary Wharf which is set to feature one of the UK’s tallest residential buildings. It suggests that there is a further £10 billion set to be invested by Dutch institutional investors.

Looking ahead, the report says that due to London’s improvement of the overall economic performance, London growth rates are set to outpace the national average over the next couple of years.

Once the balance between supply and demand has reached healthier grounds, rents are expected to stabilise or increase across the board, with Chestertons forecasting a rental growth of 2% for prime London.

In terms of prime locations Tower Hamlets is forecast to see the strongest growth in household numbers of 29,548 over the next five years.

The Chestertons Prime London Residential Lettings Index tracks quarterly changes in rental values in 23 locations across London. It is a fixed base index and is based on the quarterly repeat valuation of a standard basket of properties selected so as to be representative of the typical cross section of prime…

There is more evidence that the UK property market is not getting out of control with the latest data from Rightmove showing that asking prices are at a virtual standstill this month.

They increased by just 0.1%, or £272, month on month with more regions seeing a fall than an increase. Most notably London saw a fall of 0.5%.

According to Rightmove the figures shows that there are signs of a return to a more balanced markets in terms of supply and demand and the fall in London is a combination of buyer reluctance and a surge in new sellers with their numbers up 20% in the city.

It also says that many committed and motivated buyers have already bought, releasing some pent-up demand and contributing to a slowdown in buyer activity while prices in some areas, particularly London, may have hit an affordability cap.

An examination of the data since the start of the year shows that this is the first time that prices have slowed this year and while demand usually cools over the summer months, this marginal increase is below June’s 0.6% average over the last 10 years.

‘The London market powers the rest of the UK but is starting to run out of steam. While the legacy of rises in central London continues to ripple out to its better value commuter belt, fuelling price increases in all southern regions, London itself is now marking time. It’s an example to the rest of the country of what happens when affordability and common sense get stretched too far,’ said Miles Shipside, Rightmove director and housing market analyst.

He also pointed out that the timing of the Mortgage Market Review, more property for sale in all regions, and a tail-off in pent-up buyer demand are alleviating some of the upwards price pressure.

‘This will come as a relief to the Governor of the Bank of England and the Financial Policy Committee, who have cited an overheating housing market as a serious threat to economic recovery and have further powers to use should it get out of hand,’ added Shipside.

He also pointed out that there are early signs of upwards price pressure being reduced by a better, albeit belated, balance between supply and demand. ‘Those buyers who are the first to react to an upturn often have nothing to sell, and there is a time lag before existing home owners are ready or able to commit to trade up, down or out in the marketplace,’ he said.

‘Better selling conditions in the first half of this year and increased confidence to take on the commitment of moving have finally unlocked more supply with new seller numbers up by an average of 9.6% year to date compared with 2013. All regions have also recorded a month on month increase in properties coming to market, with the capital seeing the largest jump in new sellers, up by 23.2%,’ he added.

He explained that more supply means more…

Residential property sales in New Zealand continued to fall last month but prices remained steady, according to the latest monthly report from the Real Estate Institute of New Zealand.

Although sales in May were up 15.9% compared with April they were down 14.8% compared with May 2013 and the overall trend is downwards with all regions seeing an annual decline.

Prices increased nationally by $38,000 to a national median price of $430,000, but are down $2,250 from April 2014, the data also shows.

REINZ chief executive Helen O’Sullivan pointed out that it is the second month in a row that sales have declined compared to a year ago. ‘The easing trend in the number of sales continues, with all regions recording a decline in sales volume in May compared to 12 months ago,’ she said.

‘We would normally expect an increase in sales in May compared to April, however, after taking seasonal factors into account the increase was just 1.6%. This leads us to conclude that the drop in sales in April due to the combination of Easter and ANZAC Day has not created an offsetting increase in sales in May,’ she explained.

She pointed out that the weakening trend is also showing up in the number of days to sell with five regions seeing an increase of a week or more in the number of days to sell between April and May.

At the national level the number of days to sell is about in line with the 10 year average, however, for a number of regions the result for May is noticeably higher than the 10 year average.

‘While the growth in the national median price is almost 10% compared to May 2013, the driving force for this increase are the Auckland and Canterbury/Westland regions. Together these two regions represent almost 53% of all sales, but contributed 76% of the uplift in the median price,’ O’Sullivan said.

She added that other regions such as Hawkes Bay, Manawatu/Wanganui, Wellington, Central Otago Lakes, Otago and Southland contributed just 6% of the uplift in the median price, despite representing almost 25% of the national sales total.

Overall the national median house price fell by 0.5% from $432250 in April, to $430,000 in May. Compared to May 2013 the national median house price increased by 9.7%, with seven regions recording an increase in the median price.

Some 66% of the increase in the national median price compared to May last year occurred in Auckland, with Canterbury/Westland contributing 20% of the increase and Waikato/Bay of Plenty contributing 7%. Together these three regions accounted for 93% of the increase in the median price between May 2013 and May 2014.

Canterbury/Westland recorded the largest increase in median price compared to May 2013, with a 15.3% increase, followed by Auckland with a 10.6% increase and Central Otago Lakes with a 7.3% increase. Compared to April, Central Otago Lakes recorded the largest increase in median price, up 10.9%, followed by Hawkes Bay with 5.9% and Canterbury/Westland with…

Confidence in the property market has more than doubled across the UK, according to research from Clydesdale Bank and Yorkshire Bank published today.

The East of England and Yorkshire have seen the greatest confidence boost and overall 55% of home owners anticipate that their home will increase in value over the next 12 months compared to only 25% at the same time last year.

The Banks’ research also shows that a positive outlook on house prices is not limited to London, and that there is growing confidence across all regions.

The results come on the back of a growing number of economic indicators that show an increasing confidence in the UK economy as a whole. Figures from HM Treasury show that the number of housing transactions is now at its highest since 2008, consumer confidence is recovering and confidence among businesses is increasing too.

Across the regions, the picture is of increasing belief in the market across all areas with confidence almost doubling or better in each. While London with 80% and the South East with 70%, remain the areas most confident in an increase in property prices, other areas have an increasingly positive view of house prices.

In 2013, home owners in the East of England were least confident, with fewer than one in seven home owners expecting to see the price of their home rise in the year ahead. Confidence has grown most rapidly here, home owners are now more than four and a half times as optimistic compared to last year, meaning two thirds believe the value of their home will rise in the next 12 months.

Yorkshire has also see a big rise with home owners now over three times more likely to predict growth in property prices than a year ago, when just one in six thought house prices in the region would rise.

The Midlands, South West and London, where confidence was already relatively high, all saw growing confidence but slightly below the rate seen nationally.

‘While some differences remain around the country, it is encouraging to see confidence returning to the property market so widely and so clearly. Without exception, there has been a strong rebound in confidence in the housing market in the last year across the regions,’ said Andrew Pearce, retail director for Clydesdale and Yorkshire Banks.

‘We are seeing this positive attitude reflected in the growing demand for mortgages, our own and in the wider market, and the overall level of housing transactions. Recovery is still in its early stages, and there must be care to balance the demand for mortgages so as not to see a repeat of past issues, but the wider economic measures are also pointing in the right direction for a sustained and sustainable period of growth,’ he added.

Average UK property prices have increased 12% annually to a new high of £215,749 with seven buyers chasing every property, according to the latest Sequence index report.

The situation in London is even stronger with property prices up 23% annually to £458,581 but prices are flat month on month. This is on par with other indices which have been indicating that growth is slowing in London.

The data also shows that London buyer registrations are up 34% annually while supply only increased by 11% and there are 14 buyers in London registering for every new property instruction.

Nationwide new buyer registrations are up 29% annually but the supply of homes coming onto the market has increased by just 5% annually.

Mortgage applications have decreased 14% annually and 6% month on month with the firm, owners of 300 branches of estate agents across the country including Barnard Marcus, William H Brown and Fox & Sons, saying that the new MMR mortgage rules are cooling the market.

Overall UK prices increased by 1% in May compared with April but London recorded growth of 0%. In terms of sales, nationwide they increased by 17% year on year but fell 2% month on month while in London sales have increased 19% compared with May 2013 but fell 3% month on month.

‘Prices continue to be bolstered by rising levels of buyer demand, up 29% annually, which is around six times the rate of supply, with new instructions up just 5%,’ said David Plumtree, chief executive at Sequence.

‘Going forward, a reduction of buyer demand and stabilisation of house price growth is unlikely to happen until later this year, so we urge sellers to make hay while the sun shines by taking advantage of the captive audience of buyers now before the opportunity diminishes. There are now close to seven buyers chasing every new instruction and it is this competition which is keeping prices high and sales transactions rising, up 17% annually,’ he explained.

‘While house prices remain robust, up 12% annually across the UK and 1% on month, the mortgage market is shifting and we are seeing a cooling off of the number of mortgage applications, down 14% annually, due to the new Mortgage Market Review (MMR) recommendations,’ he pointed out.

‘When mortgage products become less attractive and interest rates eventually rise, we may see an impact on house prices as buyers, especially first time buyers, begin to struggle keeping up with rising costs of buying a home,’ he added.

Thousands of new homes will be built on unused and previously developed land in the UK under radical new plans to make it easier to use brownfield sites.

Councils will play a critical role in bringing forward brownfield land and will be asked to put in place local development orders which can provide sites with outline planning permission to speed up the building of new homes.

This could provide up to 200,000 permissions for new homes by 2020, according to the government. In addition, 20 new housing zones on brownfield land in London will benefit from £400 million funding from the government and the Greater London Authority. There will be £200 million of additional government funding available for 10 zones outside of London.

‘We have beautiful landscapes, and they too are part of the inheritance of the next generation. To preserve them, we must make other compromises. If we want to limit development on important green spaces, we have to remove all the obstacles that remain to development on brown field sites,’ said Chancellor of the Exchequer George Osborne.

He announced radical steps to put local development orders on over 90% of brownfield sites that are suitable for housing. ‘This urban planning revolution will mean that in effect development on these sites will be pre-approved. Local authorities will be able to specify the type of housing and it will mean planning permission for up to 200,000 new homes while at the same time protecting our green spaces,’ he explained.

‘I suspect there will be people who object to new building, even on the brownfields of our cities. But let me be clear, I will not stand by and allow this generation, many of whom have been fortunate enough to own their own home, to say to the next generation: we’re pulling up the property ladder behind us. So we will build the houses Britain needs so that more families can have the economic security that comes with home ownership,’ he added.

Communities Secretary Eric Pickles said the plans will make the very best use of derelict land and former industrial sites to provide new homes. ‘By ensuring commitments to housing development are in place early and having dedicated housing zones, building becomes, quicker and easier for home builders, businesses and councils,’ he added.

Ministers will look to councils to consult on and make local development orders which are a flexible way to grant planning permission on brownfield land that is suitable for housing in their area. These can set out the amount and type of housing that can be built on sites and assist developers working up suitable schemes to get work started on site quicker. And a new £5 million fund will be launched before the summer to support the first wave of new local development orders.
The government will invite bids for funding for housing zones outside of London later this year and officials stressed that key safeguards will remain in place. As with any planning…

Demand is outstripping supply in the Scottish residential property market with the result being a rise in house prices, says the latest survey from the Royal Institution of Chartered Surveyors (RICS).

It points out that a continued lack of properties coming onto the market has failed to stem the tide of prospective home buyers and the supply of new homes coming onto the market has been behind new buyer demand since April 2013.

The monthly survey shows a net balance of 31% of chartered surveyors reporting an increase in prices in May.

In the month that saw UK house prices reach record levels at £186,512 and greater lending restrictions begin to impact the market, respondents reported that in Scotland the scaling back in the provision of mortgage finance has been a little less marked than elsewhere.

The average Loan to Value (LTV) ratio in Scotland among first time buyers dropped to 86% from 88% in April but it remained more resilient amongst other types of borrowers. More modest expectations for growth are visible in the longer term as respondents’ expectations for Scottish house prices over the next 12 months dropped from 3.2% to 2.2%, the lowest since November 2013.

With Home Report instructions increasing and house sale prices on the rise there is growing optimism within the market that the summer months will be strong from a business perspective. April also saw an increase in activity within the rental sector with a net balance of 44% of respondents predicting a rise in rent prices during the next quarter.

‘The lack of supply teamed with continued growth in demand is resulting in higher prices across the country. There is some evidence to suggest that the Mortgage Market Review (MMR) has contributed to a modest tightening of the funding market, despite this, the pattern looks set to continue in the short term, with a net balance of 32% of respondents predicting an increase in sales during the next quarter,’ said Sarah Spiers, RICS Scotland director.

‘The Scottish Housing Commission will publish its report on the Scottish housing market in July. It will make practical recommendations to public policy makers and industry leaders to help improve Scotland’s housing market across all tenures, this will include addressing the current lack of supply within the market,’ she added.

Business Editor Sion Barry explores the positive impact the new £100m BBC Wales headquarters will have on Cardiff’s city centre

The UK is experiencing a mismatch in housing and mortgage activity and the Bank of England should be cautious about raising interest rates, it is claimed.

According to a new report from the Intermediary Mortgage Lenders Association (IMLA) policymakers should concentrate on making the Help to Buys scheme more targeted as broader action would be premature in the wakes of the recent MMR mortgage rules which are already slowing the market.

The message comes the day before the Bank of England’s Financial Policy Committee (FPC) meets and after UK Chancellor George Osborne cleared the way for the bank to be given new powers to intervene in the mortgage market.

The move is due to concerns about the market overheating in London but experts points out that in the north east and Northern Ireland prices are recovering at a much slower pace and drastic action should not be taken just because of what is happening in the capital city as it is not representative of the whole country.

Sharply rising UK house prices have fuelled speculation that the FPC will use its new macro-prudential powers for the first time in the near future to manage associated risks and prevent excessive growth in household debt. There is already a talk of an interest rate rise in the coming months, and certainly before the end of the year.

The IMLA report says that the strength of the housing market reflects the growing use of cash. More than a third of houses, 36%, were bought entirely in cash during the first quarter of 2014, compared with less than a quarter seven years earlier. The percentage of total housing demand that is financed by cash reached an estimated all-time high of 61% in the first three months of the year.

It also points out that the mortgage market remains very subdued. Mortgage debt is still shrinking in real terms and on aggregate, households have been putting over £10 billion of equity into their homes every quarter since the middle of 2010.

The report says that borrower quality remains robust. Average mortgage loan to value (LTV) ratios have been exceptionally depressed since the financial crisis and, despite the gradual rising trend since 2009, median first time buyer LTVs remain lower than at any point prior to 2007.

While the Bank of England has flagged concerns about rising loan to income (LTI) ratios, the affordability rules arising from the Mortgage Market Review (MMR) mean that new owner occupiers seeking a mortgage will only be granted a loan that is manageable at considerably higher interest rates, it adds.

IMLA’s report suggests the combination of a high LTV on a large mortgage loan raises its risk profile, which might justify a lowering of the maximum purchase price under the Help to Buy mortgage guarantee from £600,000. The latest Treasury data shows that just 7% of loans under the scheme were for properties valued above £250,000.

Alternatively, risk factors associated with the combination of high LTVs and LTIs could prompt the…

The Competition and Markets Authority (CMA) has published comprehensive guidance for lettings professionals in the UK to help improve their understanding of, and compliance with, consumer protection law.

The guidance follows the publication last year of a wide ranging report into the lettings market by the CMA’s predecessor, the Office of Fair Trading (OFT), which raised concerns about a number of unsatisfactory practices affecting tenants, including unfair and ‘surprise’ fees and charges, poor service and delayed and substandard repairs.

The OFT considered that greater compliance with existing legislation would improve the way the lettings market works and the guidance aims to help lettings professionals to understand their responsibilities under consumer and business protection regulations.

The CMA said it has worked closely with trading standards services to agree how the law should be applied to the most problematic practices and to identify enforcement priorities, so that together they can tackle non-compliance and improve the way the market functions.

The guidance includes practical advice such as ensuring that tenants and the lettings agent’s landlord clients know what charges and fees they will have to pay and what these are for and avoiding using misleading advertising or statements.

Overall they should ensure that the tenant or landlord is given all the information they need, at the appropriate time and provide clear information which the tenant needs to know before they move in such as guarantor and deposit requirements and the terms and conditions of the tenancy agreement.

They should also deal fairly and professionally with tenants and landlords, use fair contractual terms, make sure that services and repairs are carried out in a timely manner and with reasonable care and skill and give clear and full information to tenants about how to end a tenancy agreement.

The guidance is intended to complement existing and emerging industry schemes and codes of conduct, and is relevant to lettings professionals in England, Wales, Scotland and Northern Ireland, highlighting national variations in legislation.
‘Renting a property is a big financial commitment, and it is important that tenants can be confident that their landlord or letting agent will treat them fairly,’ said Nisha Arora, CMA senior director for consumers.

‘This guidance will help lettings professionals understand how to comply with the law and should ultimately improve overall standards in the market,’ Arora added.

Sales of prime country homes across the UK have increased by 35% in the year to March 2014, compared with the previous year with the number of potential buyers up 13%, according to the latest analysis from Knight Frank.

Prime sales in regional towns outperformed and are just 3.3% below the 2007 peak, whilst rural sales are still 18% below peak levels and there is particularly robust growth in commuter locations such as Cobham, Henley, Berkhamsted, Beaconsfield and Oxford.

But the sales recovery is highly regionalised. The firm’s report says that the turning point for the prime market outside London happened in early 2013 and the recovery has continued in 2014.

As the mainstream housing market continues to pick up, with both sales and prices rising, regional prime markets have also strengthened. Knight Frank data shows that the number of new applicants registering their interest in purchasing a country property has increased by 13% over the year to May 2014 compared to the same period 12 months previously.

But rising interest among potential buyers tells only half the story. Another measure of the health of the prime market can be achieved by assessing activity. Across England and Wales, excluding London, annual sales of properties valued at £500,000 and over rose by 35% in the year to March 2014 compared to the previous year, with transactions higher in all regions.

Transactions increased across all price bands, including a 40% jump between £1 million and £2 million, a 35% rise between £500,000 and £1 million and a 22% increase for £2 million plus homes, according to data from the Land Registry. In Scotland, total sales volumes were over 20% higher at the end of the first quarter of 2014 year on year.

Knight pointed out that while rising sales volumes are good news, prime property purchases in England and Wales, excluding London, are still almost 10% lower than the peak of the market in 2007, and in many parts of the country remain even further below where they were at the height of the market.

However, the growing trend for prime market purchasers to target town and city properties outside of London has helped fuel demand for homes in urban markets. While both prime urban and prime rural markets have enjoyed a pickup in demand, there has been a divergence in performance.

Town and city markets have seen a much faster rise in activity than neighbouring village and rural locations. In fact, at the end of March, annual sales of prime urban homes were just 3.3% below their previous market peak in 2007. In comparison, sales of prime rural properties were 18% below peak levels.

‘There are several reasons why the urban homes market is in strong demand. Those with young families moving out of London want to take advantage of the significant price differential between London and the rest of the UK, whilst at the same time live in an urban area where their children can go to…

The Bank of England is to get extraordinary new powers to control the size of mortgages in the UK in the likelihood of a property bubble that could threaten the country’s economic recovery.

Chancellor George Osborne announced the new powers during his annual Mansion House speech in London and Bank of England Governor Mark Carney said there could be an interest rate rise as soon as this year.

This comes despite lending and property experts pointing out that the only place where there is the danger of a property price bubble in London but even in the city soaring price growth is softening.

They have also pointed out that in some parts of the UK, most notable the north east and Northern Ireland pries have not yet recovered from the downturn during the recession.

Originally Carney had said that an interest rate rise was unlikely before 2015 and now he says it is imminent, putting up the cost of mortgages for millions of current home owners and raising the cost for potential first time buyers.

‘There’s already great speculation about the exact timing of the first rate hike and this decision is becoming more balanced. It could happen sooner than markets currently expect,’ said Carney.

Osborne said he will push through the new powers before next year’s general election as he believes that the Bank should have a full range of alternatives to higher interest rates as a way of cooling down the housing market.

‘I want to make sure that the Bank of England has all the weapons it needs to guard against risks in the housing market. I want to protect those who own homes, protect those who aspire to own a home, and protect the millions who suffer when boom turns to bust. So I am giving the Bank new powers over mortgages, including over the size of mortgage loans as a share of family incomes or the value of the house,’ he said during his speech.

Until now, the Bank’s new financial policy committee has merely had the power to recommend actions to banks and building societies, but it will now be able to directly limit the size of a mortgage in relation to the value of a home or the size of a potential home buyer’s income.

Neither the Treasury nor the Bank think there is an imminent risk of a property bubble but both are concerned about the potential for the property market to cause havoc once again with an economy.

‘Does the housing market pose an immediate threat to financial stability today? No, it doesn’t. Could it in the future? Yes, it could, especially if we don’t learn the lessons of the past. So we act now to insure ourselves against future problems before they can materialise,’ said Osborne.

The chancellor said that it would be up to the Bank to decide on the precise caps on loan to income and loan to value ratios should they be needed. ‘The Bank of England should not…

New research shows that eight out of 10 landlords in the UK refuse tenants whose rent is paid by local authorities with just 18% happy to let to this group.

The study, conducted by the Online Letting Agents, also reveals that 82% of landlords believe LHA tenants do not care for the property in the same way as private tenants and 80% believe that LHA tenants are much more unreliable than private tenants, when it comes to rent arrears.

‘Growing numbers of the 1.4 million private landlords in Britain are increasingly refusing to let property to tenants on benefits. Mortgage lenders and insurers are also growing wary,’ said Eleanor Carroll, director of the Online Letting Agents.

‘Their main reason for landlords turning away housing benefits tenants is the government’s welfare reforms. Many landlords have adjusted to LHA after its introduction in 2008. However, recent limits on housing-related benefits and the introduction of universal credit have caused concerned for many landlords and pose too much risk for some,’ she explained.

She pointed out that another influencing factor is that LHA is set at a local level through a formula where, in theory, the payable benefit compares with the rent of the cheapest third of properties available in the wider market that have the same number of bedrooms.

‘In practice, open market rents in some regions have outstripped the LHA calculations. It’s very much regional. In some areas of high demand there is a large and widening gap. In other areas like the North East there is not much difference between the LHA and market values,’ said Carroll.

According to the National Landlords’ Association (NLA), the proportion of landlords prepared to accept tenants receiving LHA has more than halved in three years. In the middle of 2010 some 46% of the NLA’s members let to tenants who received the benefit. By the end of 2012, this had dropped to 22%, and the decline steepened throughout 2013.

‘In spite of all this, the fact remains that benefit claimants remain more profitable than many types of tenants. According to the latest data on landlord returns, letting property to those on benefits delivers excellent returns,’ explained Carroll, adding that approximately 100,000 landlords deliberately target this market.

‘The average yield for this type of let is 6.6%, calculated as rental income against the price of the property and this is higher than for any other tenant group, except migrant workers. By contrast, the lowest yields arise in the letting of properties to executives,’ she added.

Average house prices in England and Wales have increased by £21,000 or 8.5% in a year taking the typical price of a home to £266,013, the latest index shows.

But when you take London out of the calculation then average prices have increased by 6.3%, showing that the city is driving price growth. But it adds that there are signs of growth slowing.

The data from the LSL/Acadata index also shows that May was the 11th month in a row when average prices increased with a monthly rise of 0.9%.

‘This 8.5% rise is the highest annual increase we’ve witnessed since August 2010, when the housing market was edging back from the throes of the financial crisis, and brings average property prices to a new peak,’ said David Newnes, director of Reed Rains and Your Move estate agents, owned by LSL Property Services.

‘As the vigorous health of the UK housing market catches international and media attention, all eyes have been on how the government and regulators will react. However, the growing clamour for intervention neglects the fact that when taking inflation into account, only London and the South East have seen house price growth in real terms since January 2005,’ he explained.

‘London is in a league of its own, with prices climbing 13.3% on an annual basis. When you take the capital out of the equation, average prices across England and Wales have risen just 6.3% in the last year,’ he said, adding that this price difference is the largest since its records began.

He pointed out that the national recovery is gaining strength, bringing with it renewed consumer confidence and a feel good factor to millions of households. In the past 12 months prices have risen in 91% of the unitary authorities across England and Wales. In fact, in April new record prices were reached in Cardiff, Bristol, Northamptonshire and Cambridgeshire, as growth spreads out from the capital and reaches across the rest of the country.

He also said that there is evidence of the market cooling. For example, annual growth in house sales slowed in May, potentially due to the Mortgage Market Review (MMR) rules introduced at the end of April that have lengthened the mortgage approval process.

‘There are other indications of a cooling in the market, particularly at the top end of the spectrum in London. In total, 12 London boroughs have seen prices fall in April, with the exclusive prime central boroughs of Kensington and Chelsea and the City of Westminster seeing the largest monthly drop in house prices , down 2.7% and 2.9% respectively since March 2014,’ explained Newnes.

‘But outside of the capital, the Help to Buy scheme continues to help first time buyer demand, the engine driving some of the activity in the regions. If supply could follow suit, this would sustain the housing recovery and could help restore some equilibrium across the country,’ he added.

A growing number of landlords in the UK are ignoring tenants’ request for repairs and the threat of eviction is stopping some tenants from contacting their landlord or agent to fix a problem, it is claimed.

According to the Association of Independent Inventory Clerks (AIIC) recent research shows despite the urgent nature of many repairs, only 31% of tenant requests were dealt with even in the same day while 23% took more than a week.

Also, some 34% have faced a home emergency in the past 12 months, with boiler faults and other central heating problems the most common. A quarter of a million private tenants a year are taking matters into their own hands and withholding rent from their landlords because of delays resolving emergencies repairs.

And research from housing charity Shelter earlier this year showed that more than 200,000 rental sector tenants across England are estimated to have faced a ‘revenge eviction’ in the last year after asking for a problem with their home to be put right.

Some 2% of private sector tenants said they had been evicted or served with an eviction notice because they had complained to their landlord, letting agent or council about something that was not the tenant’s responsibility, such as a repair that needed fixing.

Pat Barber, chair of the Association of Independent Inventory Clerks (AIIC), is urging landlords to listen to tenants and deal with repairs quickly. ‘Landlords have a duty of care with their tenants and should be responding to emergencies in hours, not days,’ she said.

She gave details of a recent case where a boiler had stopped working for seven weeks during the coldest part of the winter, so no heating or hot water was available in the property. The tenants were not even offered free standing heaters and the landlord ignored all requests. The tenant was too nervous to complain.

‘We have seen similar problems with front door locks that don’t work for weeks, leaks from showers that eventually bring a kitchen ceiling down and taps that don’t work and never get repaired for the whole tenancy, causing the tenants to use a bathroom tap to get water for the kitchen,’ she pointed out.

In another case a tenant was so afraid of his landlord that he lived in a freezing property for three months without reporting that there was a problem with main fuse box. His family had no light and no heating. Unsurprisingly, at the end of the tenancy the place was dripping with mould which had to be cleaned and for which he was duly charged. When asked why he didn’t report it, he said that the landlord was aggressive and had refused to take his phone calls or answer emails, when other minor problems had been reported at the beginning of the tenancy.

AIIC has put together some guidelines on response times for landlords. It says that landlords and agents have a duty of care to advise tenants on…

Nearly 200,000 new affordable homes have been delivered in England since April 2010 which Housing Minister Kris Hopkins has declared as success story.

The new figures also show that were 41,654 affordable homes started in the year to March 2014, some 15% higher than the previous year.

In addition 125,000 of the 170,000 homes planned through the Affordable Homes programme, in which the government is investing £19.5 billion public and private funding, have now been delivered.

Hopkins said that it means that since April 2010, 197,792 new affordable homes have been delivered. Overall, the government has delivered 445,000 new homes since April 2010. In contrast, between 1997 and 2010 the number of social housing homes dropped by 420,000.

‘Our affordable house building efforts are a clear success story, with nearly 200,000 new affordable homes delivered since April 2010. It means families from Newcastle to Newquay have new homes available to them, whether to rent at an affordable rate or to buy through our shared ownership schemes,’ said Hopkins.

‘And this is on top of the wider efforts we’re making, which means house building is now at its highest level since 2007,’ he added.

The Affordable Homes programme includes social rented homes, affordable rented homes and affordable home ownership schemes, and is a key part of the government’s long term economic plan. And with every new home supporting a job this multi-billion pound programme is helping get people back into work.

Areas that have seen some of the biggest numbers of affordable homes delivered since April 2010 include Birmingham with 2,740, Cornwall at 2,690, Wiltshire 2,620, Leeds 1,910, Bristol 1,830 and Manchester 1,810.

The data also shows that a fifth of the affordable homes built last year, and a quarter of the total since 2010, were built in London.

UK Business Secretary Vince Cable has stepped in the housing price debate by calling for action to be taken to stop a property boom which he claims is getting out of control in parts of the UK.

He said he was appalled that some banks are lending five times a mortgage applicant’s income. He believes that a more ‘stable’ level would be up to 3.5 times salary, adding that the desires of potential home owners should be balanced against the stability of the economy.

His interventions comes hours before Chancellor George Osborne is expected to mention how the Bank of England could tackle any financial instability caused by house price rises.

But many in the property industry are surprised at comments. Just last week the latest index from the Nationwide Building Society said the signs point to activity in the UK housing market starting to moderate.

And today the latest report from the Royal Institution of Chartered Surveyors (RICS) said that the momentum was starting to slow in the housing market, as a lack of supply, higher prices, and more prudent lending measures are making buyers and sellers more cautious.

Many experts point to the fact that most of the house price growth has been in London where overseas buyers have been fuelling the market. But even that is slowing with the latest analysis reports pointing out that price growth in the city is slowing and there are predictions of 0% growth in the near term.

When pressed Cable admitted that the boom in prices is confined to the south east of England but he still said that banks are throwing ‘petrol on the fire’ by giving home loans that ran at high multiples of applicants’ incomes.

Paul Smith, chief executive officer of haart estate agent, believes such a move would strangle the recovery in the property market. ‘It’s not clear why Vince Cable wants to kill off first time buyers, vastly reducing their ability to get a mortgage and strangling the current housing market recovery,’ he said.

‘Indeed his proposals would also hold current home owners hostage in their own homes, as they will not meet the lending criteria when they chose to move on and need a bigger mortgage,’ he explained.

He added that such a proposal would also affect house builders as there would be no encouragement to build homes if buyers can’t get mortgages.

‘The whole point of a mortgage is to help those who aren’t lucky enough to make a cash purchase and that’s the majority of the UK’s aspiring home owners which ever rung they are on,’ said Smith.

The head of research at property firm Hamptons International, Johnny Morris, said it was too early to call for caps on income multiples. ‘First we need to see the impact of stricter affordability rules recently introduced through the Mortgage Market Review. Lenders are already aware of the risks associated with deteriorating affordability and the increased vulnerability of highly geared borrowers,’ he pointed out.

‘The numbers of mortgage…

Stringent lending has led to a fifth consecutive monthly decline in housing supply coinciding with a levelling off of new buyer demand, according to the latest report from the Royal Institution of Chartered Surveyors (RICS).

There are too few properties coming onto the market and in London, where fears of an overheating market have been expressed, demand for new homes fell for the first time since June 2012.

In May when UK house prices reach record levels of £186,512 and greater lending restrictions begin to impact the market, respondents reported that banks are lending less, with the average Loan to Value (LTV) ratios among first time buyers dropping to 85.3% from 86% in April.

Meanwhile, respondents’ expectations for house prices over the next 12 months dropped from 3.9% to 3.6%, the lowest since December 2013.

Although more modest expectations for growth in activity are visible in London, there are some early signs that concerns over both supply and finance could be influencing prospects elsewhere in the country.

For example, sales expectations over the next three months in the South East show a net balance of 29% of chartered surveyors expect greater market activity and a net balance of 48% in the South West, down from 66% and 93% respectively six months ago.

The tightening in lending conditions facing some parts of the housing market even led to a modest pick up in demand in the rental sector and rent prices are now projected to grow at around 2.5% over the next 12 months, and at an average annual rate of 4% over the next five years.

‘What we are really seeing is some of the very strong upward momentum starting to come off the housing market, as a lack of supply, higher prices, more prudent lending measures and some of the talk from the Bank of England are creating a level of caution among sellers and buyers,’ said Simon Rubinsohn, RICS chief economist.

‘The most visible indicators of this are the revised downwards price expectations for the next 12 months and the flatter picture regarding new buyer enquiries. In particular, we’re seeing the London market level off,’ he explained.

‘There is some evidence to suggest that the Mortgage Market Review (MMR) has contributed to a tightening of the funding market, although it is hard to disentangle this from other factors which are now impacting on the sector and to know whether it will simply be a temporary influence as lenders adjust to the new environment,’ he added.

But the latest report and data from the Council of Mortgage Lenders suggests that MMR has not dented the lending market with loans up in terms of numbers and values.

First time buyers and home movers continue to be key drivers in the growth of the UK mortgage market despite fears that new regulations might slow things down, according to the latest report from the Council of Mortgage Lenders.

The data from the CML shows that the number of loans to first time buyers rose by 1% in April compared to March, but was 37% higher than in April 2013. By value, lending to first time buyers was up 3% on March and 52% higher than in April last year.

The number of loans to home movers increased in April by 11%, with the value up 15% compared to March. Compared with April 2013, growth was up 30% by volume and 47% in value.

Total number of loans for home owner house purchase, first time buyers and home movers, increased month on month by 6% and 11% by value on March, with year on year growth in number of loans up 33% and 47% by value. Total number of loans for remortgage in April was up 6% and 11% by value compared to March.

The data also shows that total number of buy to let loans declined slightly month on month down 1% in April but the value remained unchanged. Compared to April 2013, there was a 43% increase in number of loans and a 57% increase in overall value.

Home-owner house purchase lending in April increased month on month as lending continued to recover from the usual seasonal dip seen at the beginning of the year. In total, 53,200 loans were advanced for house purchase, up 6% compared to March, and the value of these loans totalled £8.8 billion, a rise of 11% on March.

Compared to April 2013, the number of loans increased by 33% and the value of lending by 47%. First time buyers took out 24,500 loans in April, up only slightly by 1% compared to March but 37% more than in April 2013. The total value of these loans was £3.5 billion, which was up 3% on March and 52% on April last year.

First time buyer affordability worsened fractionally, with first time buyers typically borrowing 3.42 times their gross income, compared to 3.41 in March. The typical loan size for first time buyers was £121,500 in April, up from £118,750 in March and represents the highest monthly average advance for first time buyers on record. In parallel to this, the typical income of a first time buyer household increased to £37,000, up from £35,704 in March, which was also the highest average income on record.

The relatively low level of interest rates means borrowers’ payment burden remains relatively low at 19.4% of gross income being spent to cover capital and interest payments, up from 19.2% in March and 19.1% in April 2013.

The number of loans advanced to home movers for house purchase totalled 28,700 in April, up 11% compared to…

Scotland’s commercial property market is set to boom in the wake of the referendum, irrespective of the outcome of the vote, according to a new report.

Pent-up investment demand would be released at the traditionally busy end of year, as current market uncertainty is removed, says the analysis from global commercial real estate services firm Colliers International.

A Yes vote could see a surge in occupier demand from professional services groups involved in the subsequent independence negotiations and implementation,’ it adds.

However, the Colliers International referendum report paints a less optimistic picture of the medium term prospects of the property investment market.

Polling 150 occupiers and property investors with UK wide interests, the survey results suggest that the investment market is likely to suffer, with respondents attaching a considerable risk premium in the case of a Yes vote.

According to the survey, the average response suggests it could take some 4.5 years for inward property investment to return to traditional levels and that property investment yields would need to rise by an average of 160 basis points to compensate investors for increased risks during the period of normalisation, following an independence vote.

‘Individuals must make up their own minds as to how they should vote on 18 September. However, based on the feedback of some 150 real estate professionals, it is clear that the lack of certainty is creating anxieties in this important part of the economy,’ said Walter Boettcher, director of research and forecasting at Colliers International.

‘While the Scottish Government’s Scotland’s Future proposal has suggested it will take a decidedly ambitious 18 months to put in place the necessary institutions, treaty revisions and a constitution, the survey suggests that confidence in the property sector is likely to take significantly longer to restore. Only 13% of our respondents expect the current volatility and uncertainty to disappear within two years, given a Yes vote,’ he explained.

‘The debate so far has been un-illuminating, founded as it is on what ifs and scenarios that are only partially understood. This is reflected in split survey opinions as to whether an independent Scotland would be a higher risk investment than the Eurozone periphery. Some 51% believe that an independent Scotland would be a riskier investment than these peripherals,’ he pointed out.

‘While this may reflect the risk-averse nature of property professionals in the survey, who invest on behalf of pension funds and other risk averse organisations, it may also highlight lingering concerns over the possible lack of a powerful monetary backstop, such as the European Central Bank or the Bank of England,’ he added.

He also pointed out that some 49% of the sample felt the risks would be either similar or less risky than the Eurozone periphery.

Tom Johnston, head of retail for Scotland and head of Glasgow with Colliers International, suggested that the survey highlights the need for a stable environment that enables companies to plan for the future.

‘The reality of a Yes vote would, undoubtedly, lead to a…

Plans to build new holiday homes in four locations around Lake Annecy in the foothills of the French Alps have been hailed as a landmark achievement as the area has strict planning controls.

Winning planning permission for the 37 new homes in such an environmentally protected location is put down to a sensitive approach, according to developers MGM French Properties.

‘MGM’s enviable reputation as a leading developer of residential schemes throughout the French Alps played a key role in achieving local approval,’ said Richard Deans who heads the firm’s London based UK sales office.

Although development opportunities in the Annecy area are rare, MGM has identified and secured many of the best locations in recent years, thanks to the strength of its business and a reputation for high caliber schemes spanning 50 years.

The firm has been welcomed by the area’s local authorities which, during the past 16 years, have applied stringent new requirements to planning applications, paying close attention to the style, finishes and overall quality of the architecture.

All of MGM’s planned new developments will combine contemporary designs with traditional architectural styles. Two will be in the historic lakeside town of Annecy and the others are in villages on the shore of the lake, said to be the cleanest in Europe.

‘These are small schemes of a type which I believe will have a special appeal for British buyers, particularly those who enjoy sailing and skiing, both of which are on the doorstep,’ explained Deans.

The smallest of the developments, La Villa Méïa, will comprise just four apartments within Annecy’s so-called golden triangle, the peaceful pedestrianised heart of the town with its cobbled streets and little Venice canal network. La Villa Méïa will be close to the Annecy store of Galeries Lafayette and just a few minutes’ walk from the waterfront.

Nearby Villa Lisa will contain 18 apartments in an established residential area currently being redeveloped. Close to the town centre, the new apartments will be 10 minutes’ walk from the lakeside promenade and parks.

The two villages in which MGM plans to build, both on the west side of the lake, are linked to Annecy by water taxis, a lakeside cycle path and local bus services. One is Sevrier, a village 10 minutes from Annecy by car with a sun bathing lawn on its waterfront and a boating pontoon with moorings available. Some 500 metres from the lake, Villa Opale will contain seven apartments, each with a garage, parking space and bike lock-up.

Further down the lake at Villa Emeraude in the centre of family friendly St Jorioz, 10 kilometres from Annecy, will be eight new apartments in a peaceful village setting. This part of the lake is popular for swimming.

In surveys, Annecy consistently features as one of the most desirable places to live in France. Flower filled in summer, the town is a cultural centre hosting festivals, conferences, exhibitions and theatrical performances throughout the year.

‘For investors, there is good scope for long term or short term…

People buying a leasehold property in the UK are being warned about the wide variation in fees that can be charged by management companies and landlords.

There is a lack of consistency from leasehold landlords and no industry standard which means they can, and do, charge whatever they want, according to conveyancing services firm myhomemove.

It is calling for greater consistency and clarity from management companies and landlords in relation to the charges they levy at clients who are buying a leasehold property.

In 2013, myhomemove managed 8,246 leasehold transactions, 24% of which were for first time buyers. Analysing this data has revealed that there are vast discrepancies between the amounts charged by management companies and landlords for services including Notice of Transfer, Notice of Charge, Deed of Covenant, Stock Transfer and Application.

Currently leasehold clients can be charged anywhere from 10 pence to over £1000 and Doug Crawford, chief executive officer of myhomemove said there should be an overall standard for the industry.

‘In this day and age it seems incredible that there is no industry standard for management companies and landlords, meaning they have carte blanche to charge leasehold home buyers whatever they want,’ he explained.

‘Over a third of our leasehold clients are charged between £100 and £200 by landlords and management companies, while the really unfortunate ones must pay between £500 and £1000. These fees are in addition to their moving costs, ground rent and insurance,’ he added.

Last year the number of first time buyers rocketed by 37%, while the number of buy to let investors also increased by 19% with a large proportion investing in leasehold properties such as flats and apartments, especially in boom areas such as London and the South East.

‘We appreciate that services cost money, but when a client is left baffled as to the amount they must pay and why, it seems very unfair; especially as they cannot purchase the property without paying these charges and they have no way of shopping around for a better deal,’ said Crawford.

Five designs for a new garden city in the UK have been shortlisted for a major prize at a time when the country could see up to three new towns built.

The government has pledged to reform the planning system so that new garden cities can be built and one site at Ebbsfleet in Kent has already been identified.

The 2014 Wolfson Economics Prize, the second most lucrative economics awards after the Nobel Prize, asked entrants to design a visionary and economic garden city and received almost 300 entries from all over the world.

Now it has announced the shortlist of five finalists and revealed that a new poll shows that 74% of people believe garden cities are a good way to meet Britain’s need for more housing.

The five shortlisted designs, which were judged anonymously, are made up of entries from planning consultants Barton Willmore, housing development expert Chris Blundell, urban design specialists URBED, housing charity Shelter and planning company Wei Yang & Partners.

Miles Gibson, director of the Wolfson Economics Prize, said that if all five of the proposed garden cities were built, they would provide homes for 400,000 people and construction jobs for 400,000 workers.

‘There are opportunities to improve the quality of people’s lives by building garden cities, rather than tacking 50 odd houses here and 100 houses there on to the end of an existing settlement,’ he said.
‘We can’t continue shutting people up in what are the smallest homes in Europe at just 76 square metres. People are entitled to aspire to better quality housing for themselves and that does include a reasonable amount of outdoor space,’ he added.

Gibson explained that a garden city must be green and have plenty of open space. ‘It has to be a mixed use place with jobs and offices and retail facilities to create a community. It needs to be well connected to the existing transport network but not necessarily so well connected that it becomes a commuter town. It’s got to have a life and an identity and a community of its own,’ he pointed out.

‘We haven’t done garden cities in the UK for 100 years and we haven’t done new towns in the UK for 40 years, so there’s no doubt there’s a skill and collective memory issue that would have to be addressed if any of these were actually to be built,’ added Gibson.

‘Nobody is expecting anything overnight and this takes careful planning. We hope that what the prize has done is make people feel it is possible. Our entrants all argue that this can be done and what it needs is a national political consensus that it should be done and then it will happen,’ he said.

Campbell Robb, chief executive of Shelter, whose shortlisted design proposes a development at Stoke Harbour that could eventually accommodate 150,000 people, said that creating new garden cities is an essential step towards building the homes we need.

‘From families struggling to keep up with their…

Fewer rich foreign buyers are seeking to invest in safe haven properties in London with the latest analysis showing a rise in British buyers for prime real estate in the centre of the city.

UK buyers have accounted for 53% of the market since the start of the year, up from 36% last year and 27% in 2012, according to the research from international property firm Knight Frank.

The combined figure for UK and European buyers is 79% this year compared to 46% in 2013, a notable increase that the firm says underlines how sustainable demand remains for super prime property.

The report also shows that average annual price growth across prime central London in the year to April slowed to 7.5%, but the figure is noticeably lower in the higher price brackets. Annual growth for £10 million plus properties was 3.3% and this moderation in the rate of growth comes as buyers increasingly seek value beyond the popular postcodes’ of Mayfair, Knightsbridge and Belgravia and vendors become more realistic on pricing.

The firm’s analysis of the super prime property prices shows that they grew strongly in the immediate fallout of the financial crisis and to some extent the rest of prime central London is now catching up, helping to explain the divergence in performance between the £10 million plus market and the rest of the prime London market.

British buyers are increasingly stepping into the place of foreign buyers as threats like the collapse of the euro zone diminish at a time when the UK economy improving. It means that there are now more British buyers in the super prime bracket than at any time since the collapse of Lehman Brothers.

Transaction levels have jumped markedly. There was a 54% increase in the number of £10 million plus deals done in the 12 months to the end of April compared to the previous year.

However, the report also says that while economic conditions are more benign, the political backdrop has become more unpredictable. In the UK, a series of tax changes for residential property have been announced. While individual changes will not generally deter buyers at the super-prime level, they lead to a mood of uncertainty and rising political rhetoric that is likely to dampen price growth in the run up to the UK general election in May 2015.

At the same time, instability in emerging markets, triggered by events such as the conflict in Ukraine or China’s economic slowdown, could spark a second wave of ‘safe haven’ capital into the super-prime London market and put upwards pressure on prices.

What buyers of all nationalities have in common is less loyalty to the golden postcodes of Mayfair, Knightsbridge and Belgravia. In 2013, 51% of super prime deals were in one of those three districts compared to 26% so far in 2014.
Areas such as Marylebone and Hyde Park are becoming firmly established on London’s super prime map as buyers seek more square feet for their money and developers…

Planning permission for new homes in the UK is at its highest level since 2008 but the system needs to deliver more sites more quickly to meet demand, according to new figures from the House Builders Federation.

The figures show that 177,731 permission were granted in the year to the end of the first quarter of 2014 with 43,926 in the first three months of the year alone.

The HBF said that with all indicators now showing big increases in house building activity, largely as a result of increased sales driven by the Help to Buy equity loan scheme, it is vital the number of applications granted continues to rise.

The report, produced for HBF by Glenigan, also demonstrates why the government needs to focus its attention on the planning system if there is to be a continued increases in house building.

It points out that the number of sites consented has actually dropped to 679 from 885 in the fourth quarter of 2013 and 807 in the same quarter last year. The report says that if the house building industry is going to be able to move to the next level, and raise build rates still further in the years to come, increasing the number of sites on which they are building and selling homes is absolutely key.

The house building process means that large sites can only be built and sold at the prevailing market rate for that site. It is, therefore vital that we see an increase in the number of sites granted permission if we are to sustain a continuation of the positive indicators of future expansion in house building.

Speeding up the rate at which permissions are granted will also be key to significant, sustainable increases. Too many sites are ‘stuck’ in the planning system, with an estimated 150,000 plots at ‘outline permission’ stage awaiting full sign off by local authorities.

The industry is imploring local authorities to ensure their planning departments are sufficiently resourced, and applications are processed efficiently and speedily, so that work can get started on new sites.

In its Autumn Statement the government committed to introducing legislation to remove blockages in the planning system by imposing a limit on the ‘pre construction’ conditions that planning authorities could put on permissions, and a time limit on discharging them. These proposals now urgently need implementing if housing supply is to continue to increase.

‘All political parties and commentators now agree we are facing an acute housing crisis that will only be solved by building substantially more homes. The Help to Buy Equity Loan scheme has led to a big increase in sales of new homes and the industry has responded and significantly increased output,’ said Stewart Baseley, executive chairman of the HBF.

‘Existing sites are being built out quicker and we now desperately need new sites to come on stream if we are to see increases in house building sustained. All builders are now identifying the planning system as the…

Lending for new home building is continuing to rise in Australia, up 5.4% in April to reach the highest quarterly level since early 2010, according to the latest data from the Australian Bureau of Statistics.

Overall the profile for housing finance is a positive one for residential construction activity in coming quarters, said the Housing Industry Association, the voice of Australia’s residential building industry.

Over the three months to April 2014 HIA’s seasonally adjusted estimate shows an increase in the number of loans for new housing in New South Wales of 1.1%, a rise of 5% in Victoria, a rise of 5.5% in Queensland, a rise of 7.5% in South Australia, a rise of 6.9% in Western Australia and a rise of 10.7% in Tasmania.

But levels fell considerably in the Northern Territory and in the Australian Capital Territory. The number of new housing loans fell by 31.8% and 40% respectively.

Meanwhile, preliminary ABS figures show strong growth in residential building activity in the March 2014 quarter. There was over $13 billion of residential building work done in the March 2014 quarter, a 6.8% increase over the previous quarter and a level 8.4% higher than the March quarter a year ago.

‘Dwelling approvals activity was particularly strong in the final quarter of 2013, so it is natural that we now see an improvement in the level of building work being done. The figures are the first official statistics confirming that the strong leading indicators that we saw late last year are flowing through to strong levels of residential building activity on the ground,’ said HIA economist, Geordan Murray.

‘Aside from a single quarter in 2010 when activity surged in response to fiscal stimulus during the financial crisis, the March 2014 quarter was the highest level of residential building work done in any other quarter on record,’ he explained.

He also pointed out that the value of work done on multi-unit dwellings reached a new high in the March 2014 quarter, this is consistent with the indications from housing approvals data. The jump in the value of work done on multi-unit dwellings was the strongest driver of the overall improvement in activity, accounting for around two thirds of the growth in the quarter.

‘It is encouraging to see work done on detached homes posting strong gains. Also, a second consecutive quarterly improvement in the amount of work done on home renovations is a positive sign for this part of the industry after activity dropped to decade lows in 2013,’ added Murray.

The value of work done on new detached homes increased by 4.7% in the March quarter of 2014 to a level that is 2.4% higher than that of a year earlier. The value of work done on multi-unit construction increased by 12.7% in the March quarter of 2014 to a level 19.6% above the level recorded in the March quarter of 2013.

The value of work done on renovations increased by 0.7% in the March…

UK Housing Minister Kris Hopkins has launched new How to Rent guide for private rented sector tenants in the country as part of a wider crackdown on rogue landlords.

The aim is to give private rented sector tenants the need to know rental rights at their fingertips, thus encouraging a new generation of well-informed tenants with easy access to useful and understandable information.

The launch comes as the government confirmed plans to require all letting agents to publish a full tariff of their fees both on their websites and prominently in their offices. Anyone who does not comply with these new rules will face a much stricter penalty than currently exists.

Hopkins said it is part of the government’s wider work to bring clarity and fairness to the system and ensure that England’s nine million private rented sector tenants have the knowledge to hold their landlord to account, without introducing excessive regulation which would force up rents and reduce choice.

And this is on top of additional measures being brought forward to provide magistrates’ courts with the power to impose unlimited fines on landlords found guilty of not meeting their responsibilities, such as failing to carry out essential improvement works to a property or continuing to rent out a property which the council has ruled is not fit for habitation.

The guide includes advice and information on tenancy deposit schemes, bill payments and tenancy length, a checklist of what the landlord must provide tenants, including gas certificate and deposit paperwork, information on the requirements of the landlord to maintain the structure of the property and give tenants at least 24 hours’ notice before entering the property and the legal requirements for landlords and tenants on ending tenancies and returning deposits.

‘This government is turning up the heat on the small minority of rogue landlords that are not playing by the rules and giving tenants a rough deal. The new guide will give tenants the knowledge they need at their fingertips and help raise the game of landlords who may not know what is expected of them,’ said Hopkins.

‘We are doing all of this without the need for excessive state regulation that would destroy investment in new housing, push up prices and make it far harder for people to find a flat or house to rent. The private rental sector is vital asset to the country and this government is determined to get Britain building and boost investment in the sector,’ he added.

He also pointed out that the government has already introduced new legislation which will require all letting and managing agents in England to belong to an approved redress scheme ensuring tenants and leaseholders have a straightforward option to hold their agents to account.

Other measures in the pipeline include a new code to set standards for the management of property in the private rented sector with a view to making it statutory and the introduction of a voluntary, model tenancy agreement, which landlords and tenants can use…

Mortgage lenders in the UK have successfully met a commitment they gave a year ago to contact their borrowers with interest only mortgages, according to the Council of Mortgage Lenders.

The commitment, given by mortgage lenders to the Financial Conduct Authority, was to contact interest only borrowers whose mortgages are due to mature by the end of 2020 about how they plan to repay their loans.

The CML and lenders nevertheless recognise that meeting this commitment is only the first part of an ongoing programme of communication with interest only mortgage customers.

The CML surveyed members on their communications, and found that those borrowers who should have been contacted have been. The only notable exceptions in the communication programme were those with very small balances where there is little material risk, and those with whom lenders were already in contact.

Lenders have been using a variety of contact strategies. In addition to reminders and mailings requesting the customer’s written response, including questionnaire responses, telephone calls, face to face meetings and even home visits are also used by some lenders. Overall, around 30% of customers contacted have so far responded.

Although the CML does not have a comprehensive picture yet of the most successful contact strategies, overall it seems those that include a specific call to action on the part of the customer generate higher response rates.

Among those borrowers who have responded, around four out of five already had a clear plan. Among those who did not, the survey found that the solutions and approaches lenders are offering typically include term extensions, permanent conversions to capital and interest, and overpayments.

Looking ahead, lenders will build on the experience they have gained over the past year to refine their contact strategies, continue to seek responses from borrowers who have not yet communicated with them, and gain further insight into which methods are most effective in encouraging their borrowers to respond. The CML will undertake further follow up surveys in due course to help lenders with this work.

The latest findings sit alongside research that the CML published earlier this year showing a significant fall over the past year in both the number and the value of interest-only mortgages. It is encouraging that people are clearly beginning to act positively to take steps to manage their interest-only mortgages.

‘We are pleased to report that lenders have met their initial commitment to contact interest-only borrowers whose mortgages are due to mature by the end of 2020. But we all recognise that this is just the start of a long term, continuous communication programme,’ said CML director general Paul Smee.

‘So far, around 30% of customers who have interest-only mortgages maturing by 2020 have responded to their lender on their repayment plans. This is an encouraging start, but also highlights the challenges of achieving effective two-way communication,’ he pointed out.

‘If you have an interest-only mortgage due to end before the end of 2020 and you have not yet responded, it is…

The prime residential market across Scotland has outperformed the overall Scottish market, with the highest level of activity since 2007, according to a new analysis.

Prime transactions, that is for properties sold for £400,000 and above, across Scotland increased annually by 32% during the year ending March 2014 compared to 20% for the overall market.

The analysis from real estate company Savills says that such strong sales are being driven by the hubs of Edinburgh, the Aberdeen area and Greater Glasgow.

The Tayside region, which includes the counties of Angus, Perthshire and Kinross, has benefited from the strength of the Aberdeen market, with a 36% annual increase in sales as well as a return to closing dates.

Around 20% of Savills buyers across Tayside in the last 18 months came from the Aberdeen area, with a further 45% coming from other parts of Scotland and the rest of the UK, thus highlighting the popularity of the Tayside region as an attractive area for relocation.

There was also a jump in transactions at the top end of the market above £1 million in Scotland, with 144 sales recorded in the year ending March 2014, including nine in Tayside with buyers coming from as far afield as South Africa.

Prime values across Scotland are rising, especially in the hotspots of Edinburgh and Glasgow due to the reduction in stock following the rise in prime sales. The rebalancing of supply and demand has begun in the country locations including Tayside where values have stabilised. The prime Tayside market is being led by the lower end of the market up to £500,000 where values have increased. The upper end of the regional country house market remains challenging as there is currently a high supply of stock at this level.

The number of mainstream sales across Scotland increased annually by 20% during the year ending March 2014, mainly driven by an increase in mortgage lending. Mainstream values across Scotland as a whole increased annually by 8% during the first three months of this year, which reflects the confidence returning to the market.

Within Tayside, the market in Angus has had a strong year with a 33% annual increase in transactions. The market in Perth and Kinross is consistent with the rest of Scotland in terms of activity. Residential activity in the cities of Dundee and Perth also increased, however the markets in these areas are still lagging the rest of Tayside and Scotland as whole.

Meanwhile, the Scottish Government has published new figures showing significant growth in the Scottish property sector over the last year. The figures show that the cash value of residential sales has risen from 22.2% between 2012/2013 and 2013/2014 and that sales volumes in 2013/2014 are the highest since 2007/2008.

‘These figures are extremely encouraging, especially when viewed alongside the wider indicators of strength in the Scottish economy, where Scotland is outperforming the UK on employment, unemployment and economic activity,’ said Enterprise Minister Fergus Ewing.

‘Inward investment in Scotland as a whole…

Residential real estate prices in 20 key American cities increased at a slower pace in the year to the end of March as the housing market began to weaken at the start of 2014.

According to the S&P/Case-Shiller index property values increased 12.4% from March 2013, the smallest 12 month gain since July, after rising 12.9% in the year that ended in February.

Tight lending standards and a rise in mortgage rates since the middle of 2013 have slowed demand, limiting the ability of sellers to keep asking even higher prices. An increased availability of cheaper properties, faster job and income growth, and a sustained drop in borrowing costs this year would help draw more buyers into the market.

‘The upward trajectory of prices remains in place, but with a slower rate of appreciation,’ said Michael Gapen, senior US economist at Barclays Capital in New York.

‘There’s still reason to suspect that home prices will rise as credit availability on the margin, is actually getting better, labour market progress is gaining strength and average income is improving,’ he said.

Prices covering all of the US climbed 10.3% in the first quarter from the same period in 2013, down from an 11.4% year on year gain in last year’s fourth quarter, which was the biggest increase since the first quarter of 2006.

Home prices adjusted for seasonal variations increased 1.2% in March from the prior month while unadjusted prices rose 0.9%.

All 20 cities in the index showed a year on year gain, led by a 21.2% rise in Las Vegas and a 20.9% increase in San Francisco. Cleveland showed the smallest year on year increase, with prices rising 3.9%.

Home sales have been slow to pick up from a slump in early 2014. Purchases of new homes climbed last month by 6.4%, the first gain in three months, to a 433,000 annualized rate, Commerce Department data shows. The advance was led by a 47.4% surge in the Midwest.

Sales of previously owned homes rose 1.3% in April, the first gain this year, data from the National Association of Realtors showed. The increase showed signs of underlying softness, as investors continued to play a big role in the market and the share of first-time buyers was little changed.

Housing began to cool in the middle of 2013, with residential investment becoming a drag on the economy during the last two quarters, its worst six month performance since the first half of 2009.

“Housing indicators remain mixed. Mortgage rates are near a seven-month low but recent comments from the Fed point to bank lending standards as a problem,’ said David Blitzer, chairman of the S&P index committee.

The rise in borrowing costs eased in the second half of 2013, providing more incentive for buyers to come off the side lines. The average rate on a 30 year, fixed mortgage was at 4.14% in the week ended May 22, down from 4.53% at the start of the year, according to Freddie Mac. The latest rate…