On the other side of the Pond
The housing bubble burst first in the US as the subprime collapse affected a lot of working class people. Recent data from the US indicated that new home sales fell sharply by a 14.7% in December while existing home sales appeared to have rebounded the opposite way. Just 331k of new homes are now being sold on average which is less than a quarter of the sales rate at the peak with an average price tag of $220K, this is clearly more bad news on the housing sector.
We are bound to see the same effect here in the UK over the coming month but with a less harsher decline as the UK market is not as volatile like the US. Also in the UK the majority of sales are for existing houses as our new build schemes are far fewer than over the Atlantic (we are restricted for space being an island), so existing home owners trying to sell will have to be patient to get the right price but buyers with cash will definitely snap up good bargains this year.
Continuous Slide in UK house Prices
The Nationwide price Index recorded its 15th Straight monthly Fall after prices slid 1.3 per cent in January, while the UK Land registry’s House Price index for December recorded a drop of 2.0 per cent.(data from the FT.com)
Last Thursday’s figures bring the year-on-year drop in the Nationwide Index to 16.6 per cent, against a decline of 15.9% in the year to December. As measured by the nationwide Index a series that has recorded monthly movements since 1991, more than four years price equity have been wiped out. House prices are 19.1 per cent down from their peak in October 2007.
Around 10 per cent of the UK mortgage holders owe banks more than the worth of their homes, and as the recession is getting worse with job losses and the banking system meltdown, those struggling to pay their mortgages will find themselves in real trouble to refinance their homes or pay their mortgages which will increase repossessions.
One traditional forerunner of house prices -that of buyer inquiries- appears to have lost its historical connection with house purchase activity. Although inquiries have been rising strongly for month the number of house purchased and the level at which they have been bought has not risen in line. Bargain hunters or first time buyers with a big deposit trying to acquire their dream hopes in this current environment are unlikely to show the same level of urgency as was the case one to two years ago.(Nationwide senior economist-Martin Gahbauer)
While the fall in house prices and the parallel reduction in interest rates have probably made many households curious about what is currently available in the market, many are likely to be hesitant to commit in a recessionary environment.
(Extracts from the FT)
International Buyers Prop Up London Property Market
International investors from the Middles East Asia and continental Europe are taking advantage of declines in property prices in London and the weak pound to buy property in London.
Property agents have reported a sharp increase in international inquiries in recent months from Malaysia and Singapore, with spikes coming immediately after interest rate cuts.
Property agents say house prices in the capital have fallen by about 15 – 20 per cent since their peak about a year and a half ago, but favourable exchange rates mean buyers from abroad can buy for as little as half what they would have spent a year ago.
Inquiries from France and Italy are particularly strong, as euro-investors can now get 35 per cent more for their money. Those with Singapore dollars, Taiwanese dollars and Japanese yen can make their money go even further.
Foreign property investors in London have played an important role in the recovery of the UK housing market in previous downturns, led by Hong Kong and Malaysian buyers in the early 1990s and Americans in the early 80s.
Ajanta
As a dynamic organisation we are gaining a reputation for quality and innovation. Our homes are mainly a mixture of New Build Homebuy (formerly Shared Ownership) and sub-market rent properties for key workers and first time buyers. Ajanta also offers a selection of rental properties in London available to anyone. We work primarily through strategic partnerships with the education sector, health trusts, and developers and have commissioned some of the UK’s leading architects for our projects.
We have plans to provide a further 200 homes across London, strengthening our reputation for delivering the best of modern urban living to the intermediate market using cutting edge construction and design techniques.
We are committed to the Presentation Group’s environmental policy. Through good design and careful use of building materials we seek to minimize the impact on the environment. For example, we strive to increase the use of more renewable and recycled materials in the construction of our buildings.
Our new homes incorporate energy-saving features such as solar panels, high- insulation ratings and a host of small features that make a difference, such as water-saving spray taps. This approach, together with low maintenance features such as doors that do not need to be painted, also contribute to lower household bills for our residents.
Ajanta
47-49 Durham Street
Vauxhall
London
SE11 5JA
Tel: 020 7091 9400
email: sales@ajanta-homes.co.uk
Medics Professional Mortgages
Mortgage Services
Medics Professional Mortgages are experienced mortgage advisers specialising in the medical, dental, veterinary and optician professions.
We offer a range of professional financial services for medical, dental, veterinary and optician professionals.
We advise hundreds of clients on protecting their income, gaining health insurance, investments and planning for retirement and we would be delighted to assist you with your enquiry.
Contact
Tel: 01403 780 770
Global House, Daux Road, Billingshurst, West Sussex, RH14 9SJ
Jennie Wood Properties
Jennie Wood Properties provides a complete service as estate and letting agents, listening to and fulfilling the needs of vendors, purchasers, landlords and tenants.
Jennie Wood has assembled a team of enthusiastic, experienced professionals to work closely with clients in the property market, whether buying, selling or renting. With many years of success in the Docklands property market behind them, the award-winning team aims to provide clients with a professional, helpful and friendly service to take the stress and heartache out of property transactions.
In-depth knowledge of the local property market means that the most up-to-date and accurate information can be provided to give realistic, free valuations without wasting clients’ time. This means that the company is happy to work on a “no sale, no fee” basis.
Address: 4 Longfield Cottages, Englands Lane, Loughton, Essex, IG10 2QQ
Tel: 020 7100 6677
Mortgages for Professionals
Mortgages for Professionals is a specialist mortgage broker offering lenders from the whole UK market. We provide a service dedicated to individuals with professional qualifications and high projected earnings – from doctors and dentists, to accountants and engineers
Our offices are based in central London, although we arrange mortgages for professionals throughout the UK.
All of our mortgage brokers are professionally qualified and have many years experience in dealing with the particular demands of professional clients. The relationships we have established with all of the UK’s major lenders enables us to negotiate with senior underwriters on our clients’ behalf for favourable terms and enhanced income multiples
Postal Address:
111 Charterhouse Street
London
EC1M 6AW
Telephone:
0845 200 0155
Fax:
0207 553 3250
Totally Money
TotallyMoney provides free comparisons on a range of financial products. We help our customers save money on loans, mortgages, life insurance, credit cards and energy by comparing the entire UK market to find the best product for their budget and requirements. We help 30,000 people every day.
Why use Totally Money
- Totally Money is designed to make it easier to compare best financial products, and switch
- Totally Money is 100% free from advertising
- It’s quicker: we use the shortest possible set of questions to help you find products. We don’t collect extra unnecessary data about you to sell on at a later date.
- We only work with providers who have signed up to the most stringent standards within their industry – 100% impartial mortgage advice, 100% impartial life insurance advice, regulated by the Financial Services Authority, signed up to their industry codes (such as FISA) and committed to treating customers fairly. If you don’t think that you’ve been treated well by any of the companies featured on our site, please email us with the details.
- We aim to be INFORMED and IMPARTIAL. Where possible we compare the whole market, with accurate, up-to date data*. Where we can’t compare the whole market or it’s not sensible to offer online comparison tables, we will tell you. If we think you should seek financial advice rather than applying directly yourself online, we will tell you.
*Our loans and credit card product pricing is supplied by Defaqto. Defaqto’s products are used by all major UK Banks, Building Societies, Investment Houses, Insurance Companies and by thousands of IFAs and Insurance Brokers. Defaqto’s data is also used by Government and Regulatory Bodies, including the FSA and IIB.
End of Falling House Prices
New research suggests that an end to falling house prices could be in sight.
Figures show that the number of new vendors more than halved to 43,000 this month, while there were 429,560 buyer inquiries in the first two weeks of January 2009 compared to 199,762 in the same period last year.
Last week, Which? and Citizens Advice warned that 1.5 million homeowners with big mortgages face difficulties if house prices continue to fall.
Fewer new homes coming onto the market coupled with increased interest from buyers could be behind the change.
“The speed with which prices have declined has been worrying, but it does mean we are potentially reaching the bottom sooner.”
He adds that, for would-be buyers, 2009 could be the “year of the property deal”, suggesting that cheaper prices and mortgages will help people get on the ladder.
The Guardian reports that groups told the Commons Treasury that if properties fall in value by another 15 per cent, many people will find themselves in negative equity or with mortgages equal to more than 90 per cent of their home’s value.
Christopher Rowlinson
Christopher Rawlinson & Co are the longest established Estate Agent in both North Wembley and Preston Road. It is a professional and independent firm with extensive and unrivalled knowledge of the local property market.
Taking its reputation very seriously, the majority of sales and lettings are a result of referrals and repeat business. Christopher Rawlinson & Co provides a quality professional service with honest advice and a personal touch.
Harrow Office
265 Preston Road, Harrow
Middlesex. HA3 0PS
T: 020 8904 7733
F: 020 8537 2272
E: harrow@christopherrawlinson.co.uk
