http://www.121move.co.ukLatest Property Newshttp://www.121move.co.ukhttp://www.121move.co.uk/news/01935/The_cost_of_renting_flats_surges_to_all-time_highThe cost of renting flats surges 7% to all-time high as young are priced out of buying

But its tenants in smaller homes that are bearing the brunt of the worst rises.

Rental asking prices for studio flats have increased by nearly 7 per cent in the past year reaching an average £718 a month while one-bedroom flats increased by 2.5 per cent to £660 - also a new record.

It comes as yet another financial blow to younger Britons. Rents have soared during the financial crisis - largely a result of stricter lending rules making it harder for aspiring buyers to get a foot on the property ladder.


Meanwhile, the spending power of Britons has been squeezed by the fast-rising cost of goods. The Consumer Prices Index peaked at 5.2 per cent last year and has since stubbornly remained above its target of 2 per cent.

Research by Findaproperty suggested that tenants are now spending an average 38 per cent of the typical £27,000 take-home salary on rent - but the figure soars to 71 per cent for London.

The study suggests the average rental property in the capital - at £25,800 - gobbles up a vast amount of the typical salary, at £36,384.

A recovery in house prices in London and the South-East has put the property-owing dream beyond the reach of millions. Experts say the bounce back has been driven by a range of factors including an influx of foreign buyers, the Bank of England's efforts to hold down borrowing costs and a recovery in bonuses in London's financial sector.

London's buy-to-let market is expected to come under pressure as the Government-imposed cap on benefits forces some council tenants out of the capital.

'Smaller homes remain in limited supply and as a result, individuals and couples are still facing record asking prices for smaller flats and therefore spending a significant proportion of their overall household income on this,' said Samantha Baden, a property analyst at Findaproperty.

'This is particularly pertinent in areas like London where demand is high, which is why tenants looking for more affordable rental property should consider the impact of location as well as size.'

The biggest fear is that low interest rates have held BTL up, which should rates increase many landlords could be in trouble.

source: This is Money

]]>Thu, 10 May 2012 GMT0000001935http://www.121move.co.uk/news/01934/Rise_in_home_repossessions_slowsRise in home repossessions comes to an end as first quarter figure levels out

The number of homes being repossessed has stopped rising so far this year, according to the Council of Mortgage Lenders (CML).

The 9,600 repossessions between January and the beginning of April was the same number as a year ago, breaking the recent trend of year-on-year increases.

The figure is still up 10 per cent from the end of 2011, but this follows a 'normal seasonal pattern' said the CML.

Record-low interest rates have helped mortgage borrowers in the last two years, despite the banks lending at much higher rates than the Bank of England 0.5 per cent base rate, and 2011 saw the lowest annual number of repossessions in four years - at 36,200 homes.

The CML has predicted that 2012 would see the number of homes repossessed rising to 45,000, but it now says it could revise this down when it publishes forecasts this summer.

However, it sounded a note of caution.

'Continuing pressures on household finances, changes to welfare benefits and an upward drift in mortgage rates all have the potential to disrupt the current stable picture,' the CML said in a statement.

But there was a little more good news, with the report also highlighting a 'modest improvement' in arrears. The number of mortgages with arrears of 2.5 per cent or more of the outstanding balance fell to 157,800, down from 160,300 at the end of December and 170,500 a year ago.


Mark Harris, chief executive of broker SPF Private Clients, said: 'It's important that complacency doesn't creep in. While interest rates are expected to remain at 0.5 per cent for the foreseeable future, clearly some borrowers are still struggling to afford their mortgage as living costs continue to rise and many lose their jobs.

'Lenders must continue to show forbearance and look after customers who are struggling by letting them switch to interest-only, take payment holidays or extend their mortgage terms.'

More than one million homebuyers have been facing higher mortgage repayments from the beginning of May as those on standard variable rates with Halifax, Co-operative Bank, Royal Bank of Scotland (offset mortgage and One Account customers only) and Yorkshire and Clydesdale banks all saw an increase in rates.

Bank of Ireland mortgage customers will see their standard variable rate rise from next month, and again in September.

Mark Harris added that a significant jump in buy-to-let lending compared with the first quarter of 2011 came as no surprise.

'Low interest rates and rising demand for rental property from tenants is making the private rental sector an attractive investment proposition,' he said. 'There has also been a significant increase in landlords remortgaging which we haven't seen for some time. This is down to more competitive buy-to-let deals coming onto the market, enticing borrowers off the low 'go to' rates at the end of their fixed or discounted periods.

'While capital growth on buy-to-let is likely to remain subdued for some time outside of prime central London at least, income is strong and returns favourable when compared with other investments.'

source: This is Money

]]>Thu, 10 May 2012 GMT0000001934http://www.121move.co.uk/news/01933/DIY_spending_falls_to_record_lowDIY spending falls to record low

Spending on DIY has declined to its lowest level in over 15 years amid the continued squeeze on household finances and a subdued housing market, according to research by Lloyds TSB.

Households spent a total of £7.8 billion on DIY in 2011 – equivalent to around £300 per household; the lowest total since records began in 1996 and almost half of the £15.5 billion spent at the peak in 2004.

There was a fall of 17% in real terms (i.e. after allowing for inflation) from the total of £9.4 billion spent in 2010.

Suren Thiru, Lloyds TSB Housing Economist, commented:

“Consumers have been experiencing the biggest squeeze on their discretionary income for over a year. Couple that with a very subdued housing market, and it is unsurprising that so many are cutting back on home improvements. With economic conditions expected to remain challenging, the current squeeze on spending on both DIY and tradesmen is likely to continue for some time yet."

source: propertytalklive

]]>Thu, 10 May 2012 GMT0000001933http://www.121move.co.uk/news/01932/Rise_in_buy-to-let_landlordsRise in buy-to-let landlords as first-time buyers struggle

Buy-to-let property investors have made a strong return to the housing market as first-time buyers continue to struggle to get on the property ladder, new figures show.

The return of the buy-to-let investor will lead to fears that first-time buyers are being squeezed out of the market by absentee landlords.

The number buy-to-let mortgages lent to landlords rose by a third over the first three months of 2012, according to the Council of Mortgage Lenders (CML).

The CML said that 32,300 buy-to-let loans were made over the first quarter of the year, a 32 per cent increase on the first three months of last year.

Meanwhile the number of mortgages lent to first-time buyers in April dropped to their lowest level for nine months, according to chartered surveyors E.serv.

The company said that loans made to first-time buyers in April numbered just 11,307, a fall of 5 per cent from March and the lowest since last July.


Property experts said that mortgage companies are increasingly reluctant to lend to first-time buyers due to the high loan-to-value rates that they require.

Mortgage firms are far more willing to lend to buy-to-let landlords, who tend to have more money and can therefore pay a larger deposit.

Richard Sexton, business development director at E.serv, said that mortgage companies have “begun to scale back” lending to first-time buyers.

“Buy-to-let landlords are taking the places of first-time buyers as there is an absence of them in the market place because they can’t get loans,” said Mr Sexton

He said that the housing market would be in a “far worst place” than it is now if it were not for the return of buy-to-let landlords.

Jonathan Samuels, the chief executive Dragonfly Property Finance, said that there has been a “seriously sharp spike” in loan applications for buy-to-let properties in the first four months of 2012. He expects the increase in buy-to-let lending to carry on “for some time yet”.

“A shortage of rental stock and strong demand from the growing number of forced tenants will keep driving the sector forward. There’s a lot of portfolio building, as investors add properties to give them increased exposure,” said Mr Samuels.

He said that people are seeing buy-to-let as a “pretty stable place to be” because property prices are falling and mortgage lenders still see lending to owner-occupiers are risky.

“Investors feel that there’s a lot left in the buy-to-let market and are putting their money where their mouth is,” said Mr Samuels.

However he warned that buy-to-let landlords need to “know what they’re doing” and should be prepared for interest rates to rise.

The CML said that although lending to buy-to-let landlords has grown sharply in the last year, it is still at only around a third of its 2007 levels.

Matt Hutchinson, a director at property website Spareroom.co.uk, said: “Will buy-to-let lending every return to 2007 levels? With average loan-to-values on buy-to-let mortgages at 75 per cent and average minimal rental cover at 125 per cent it is unlikely, as 25 per cent deposits will prevent a large number of people, particularly amateur landlords, from buying rental property.”

Tracy Kellett, managing director of BDI Home Finders, a firm of buying agents, said although the buy-to-let market is up it remains a “shadow of its pre-housing crash levels”.

Grant Shapps, the Housing Minister, said: "We do not have to make a choice between first time buyers and buy to let. We need both. And while a third of all mortgages went to first time buyers last year, only 12 per cent went to buy-to-let landlords.

“But I’m determined to pull out all the stops for those who want to get on the property ladder, which is why in March the Prime Minister and I launched the NewBuy Guarantee scheme which is expected to enable up to 100,000 aspiring homeowners to buy newly built properties with just a fraction of the deposit they would normally need."

source: The Telegraph

]]>Thu, 10 May 2012 GMT0000001932http://www.121move.co.uk/news/01931/Judge_order_GBP4%2C000_to_tenants_from_hellJudge order £4,000 to tenants from hell

There’s a new rush into buy-to-let as savers flee low-rate accounts in search of higher income from property.

But many don’t realise the range of rules that landlords must abide by – and the costly implication if they fail to do so.

Many new landlords, in particular, don’t realise that they could end up losing thousands of pounds if they don’t put the deposit into a tenancy deposit scheme. And the rules, which became law in 2007, have just got even tighter.

My experience, as an accidental landlord, should be a salutary reminder to those letting out a home.

In February 2010 I rented out my flat in East London to a young couple, on an assured shorthold tenancy basis. It was mutually agreed, to my eternal regret, that we wouldn’t bother with a tenancy deposit scheme as they were only going to be in the property for three months.

To say they were a nightmare from beginning to end is an understatement. My flat was up for sale when they came to view it and they agreed to let agents have keys to show people round. However, once they were in, they threatened to call the police if the agents let themselves in. On the odd occasion they were able to gain entry, the flat was filthy.

I was also subjected to countless aggressive texts, calls and emails about matters ranging from the water being cut off (thanks to Thames Water), the ‘useless shower’ and them being ‘aggrieved’ at having to pay water bills.

It was only when a neighbour alerted me to the fact that final demands were turning up in my name that I became aware they hadn’t been paying other utility bills either.


I asked them to move out and they refused, but finally announced they were leaving in July 2010. Because they’d damaged property, I offered them a portion of the deposit back. They denied the damage and demanded the whole lot back. After finding out they could fleece me for three times the original deposit because I hadn’t lodged it with a protection scheme, they decided, lo and behold, that they did after all want it to be put into a scheme and started (the tenant who had signed the tenancy agreement) small claims proceedings.

Even then, I would have had up until a day before the court hearing to put the deposit into a scheme, but the lawyer I contacted who ‘specialised’ in housing law failed to tell me this.

What followed was nearly a year and a half of stressful and intimidating court appearances. At the first hearing, I was ordered to pay the tenants almost £4,000, which equated to three times the deposit plus costs.

This was later reduced on appeal to £1,600 (after I’d paid £300 for legal advice) as the appeal judge ruled that because the tenants had already moved out, the original judge’s decision was wrong. However, neither judge was prepared to consider the fact that the tenants provided false information and even lied on a Statement of Truth, technically a criminal offence.

When I pointed this out to the appeal judge and told him I would inform the police, he said I would be ‘laughed out of the station’. He also refused to look at written evidence I had gathered (including a letter from the local authority) as proof.

The tenant eventually took out a third party debt order against me as I refused to pay on the grounds that they’d lied. An appeal to my MP on the same grounds has come to nothing.

All this could have been avoided had I simply put their deposit into a scheme, whether or not they agreed with the decision.

‘If you are renting out a property [even if this is through a letting agent], make sure you understand your responsibilities for safeguarding your tenant’s deposit,’ says a spokeswoman for the housing charity Shelter.

‘Changes to the regulations surrounding tenancy deposit schemes mean that, from 6 April 2012 landlords have up to 30 days from the start of a tenancy to put the deposit into one of three official schemes and inform the tenants that they have done so. The penalty for failing to do this is up to a judge to decide and will vary from one to three times the value of the deposit. It will be harder for them to evict a tenant and tenants are now able to claim up to three times the value of the deposit AFTER they have moved out of the property.’

My experience of being a landlord has taught me that everything needs to be signed on the dotted line. Don't leave anything to chance and don't put your trust in people you don't know.

source: This is Money

]]>Thu, 10 May 2012 GMT0000001931http://www.121move.co.uk/news/01930/1_in_5_mortgages_are_buy_to_letBuy to let mortgage applications make up one in five of all home loan applications, according to one of the UK’s largest estate agents.

Haart also claims buy to let remortgage applications reached a new high for the year, despite the Council of Mortgage Lenders disclosing the number dropped by 1% in the first three months of the year in official figures.

The property firm reckons mortgage advisors throughout the branch network process 200 applications a week – but does not reveal how many complete – although sales were up 38% in March, compared to the previous month.

Financial services managing director David Miles said: “Our latest figures show that experienced landlords are happy to continue to invest in property by expanding their portfolios to meet the high tenant demand in many areas of the country. It is also interesting that some homebuyers are using the equity in their current properties to invest in buy to let for the first time.

“Whilst lending criteria understandably remains risk averse, there are still many great opportunities for landlords to maximize their yields from all sorts of property across the country, and my feeling is that our buy to let lending will continue to grow during 2012.”

source: property118

]]>Thu, 10 May 2012 GMT0000001930http://www.121move.co.uk/news/01929/Tenants_being_evicted_because_of_the_OlympicsTenants being evicted because of the Olympics

Tenants in east London are being evicted from their homes as landlords attempt to cash in on the Olympics, BBC News has learned.

The housing charity Shelter says it has seen more evidence of landlords acting unscrupulously and evicting people illegally.

One estate agent said properties typically rented for £350 per week were being marketed for £6,000 per week.

Shelter fear the problem will get worse as the Games approach.

The BBC's Michael Buchanan says: "The potential profits are leading to some private landlords telling their tenants they have to leave their homes, with little notice."

One woman told the BBC she and her four housemates had been given two weeks to leave; another couple had been given three weeks.

All said their landlords were seeking to capitalise on the Olympics.

Shelter says it has seen increasing evidence of landlords giving tenants little time to leave or increasing rents hugely during the Olympics and it worries the situation will get worse as the Games approach.

Housing Minister Grant Shapps said: "Landlords should be under no doubt that it is a criminal offence for them to evict a tenant without giving proper notice, and that anyone found guilty of doing this - or of harassing a tenant - could lead to a custodial sentence of up to two years."

The National Landlords Association condemned the practice, saying it was more beneficial to landlords to have a good, long-term tenant in their property.

Source: BBC News

]]>Mon, 07 May 2012 GMT0000001929http://www.121move.co.uk/news/01928/Nice_neighbours_worth_over_GBP15%2C000Mon, 07 May 2012 GMT0000001928http://www.121move.co.uk/news/01927/Housing_is_put_in_centre_stageHousing is put in centre stage

Jack Dromey MP, Labour’s Shadow Housing Minister, responding to the Communities and Local Government Select Committee cross-party report on a major increase in investment in house building, said:

"This timely cross-party report underlines the growing housing crisis in Britain. One that the Tory-led Government’s policies are making worse, not better. House building is down 26% on the average under Labour, homelessness is rising, the mortgage market remains weak and private rents are increasingly unaffordable.

"With the economy sinking and unemployment rising it has never been more important to build badly needed homes, building Britain out Cameron and Osborne's recession. That’s why Ed Miliband is calling for an immediate tax on bankers’ bonuses to fund 25,000 affordable homes and create 100,000 new jobs for young people.

"It is critical that housing is put centre stage as Labour has argued. We therefore welcome the committee’s proposals, including increased investment from institutional lenders and pension funds, and proposals such as a housing investment bank to unify public and private funding.

"Labour will continue to lead the debate on housing. Our policy review includes not just ideas such as a housing investment bank, but incentives for investment into the private rented sector, greater financial freedoms for local authorities, and new and innovative models, including an expansion of self-build housing."

Jack Dromey MP, in response to the committee’s findings on the Government’s affordable rent model, added:

"As the findings of this report demonstrate there are real concerns that the Tory-led Government is presiding over the slow death of social and affordable homes. On Grant Shapps' watch we saw the biggest collapse in affordable house building in history and now this report has confirmed that the Government’s so called affordable rent model will be unaffordable to many and is not sustainable post-2015."

"With its economic policies putting more people out of work and putting the biggest squeeze on living standards in a generation and its housing policies squeezing out social and affordable housing, the Government is failing the millions of families who want a decent home at a price they can afford."

Source: Labour

]]>Mon, 07 May 2012 GMT0000001927http://www.121move.co.uk/news/01926/Estate_agents%27_role_as_vital_as_everEstate agents’ role as vital as ever

Buying or selling your home can be a stressful and difficult time for many.

Some wouldn’t even know where to begin when it comes to boasting about their property or finding the right people to move in.

The role of the estate agent has changed over the years, with the internet allowing people to do most things for themselves. But that doesn’t always guarantee you the best deal.

That’s where our friendly neighbourhood estate agent steps in. Someone who can guide you throughout the whole process, asking the right questions on your behalf and taking you on accompanied viewings to help you find your dream home.

And in these challenging economic times, an estate agent is also there to get the most out of your money and ensure everything goes smoothly.

One local expert from the industry said: “We are dedicated to finding buyers for a property. We are aware members of the public use other sources to find a home but what we do is we try to attract a buyer, which involves taking calls and talking with people. We have a knowledge about the area.

“It takes staff and man power. I think that is why people still come to agents. A lot of people also don’t like negotiating with buyers face to face.

“What we do is give buyers and sellers confidence. Our experience as well goes a long way. In the past this was important but now it is more important than ever.”

One question which people always want to ask is how much an estate agent’s commission fee is.

Our expert continued: “The general consensus with a lot of people is that they don’t know where the money is going for the charges.

“In essence there are staff to pay and advertising and media costs. The client doesn’t have to pay until we have done the job. They can walk away and it hasn’t cost them a bean.

“We could do an enormous amount of work and not get anything in return. Some people don’t think about the other side of the coin.”

Another expert in the field said: “There is a perception that all an estate agent does is put a few pretty pictures in the windows and hope for the best. There’s an awful lot more to it of course.

“People think that an agent’s fee of about £3,000 if an awful lot of money but when the work is spread across 12-14 weeks, you can see the value of money people are getting.

“People always want to know how much we charge, and how much we think people’s homes are worth. They also want to know what we are doing for our commission and we do our utmost to explain what is involved. If people are trying to sell a property and there’s an enquiry, you wouldn’t know anything about them. We are also able to look into people’s financial situations.”

Source: Chichester Observer

]]>Mon, 07 May 2012 GMT0000001926http://www.121move.co.uk/news/01925/Tenats_being_evicted_because_of_the_OlympicsTenats being evicted because of the Olympics

Tenants in east London are being evicted from their homes as landlords attempt to cash in on the Olympics, BBC News has learned.

The housing charity Shelter says it has seen more evidence of landlords acting unscrupulously and evicting people illegally.

One estate agent said properties typically rented for £350 per week were being marketed for £6,000 per week.

Shelter fear the problem will get worse as the Games approach.

The BBC's Michael Buchanan says: "The potential profits are leading to some private landlords telling their tenants they have to leave their homes, with little notice."

One woman told the BBC she and her four housemates had been given two weeks to leave; another couple had been given three weeks.

All said their landlords were seeking to capitalise on the Olympics.

Shelter says it has seen increasing evidence of landlords giving tenants little time to leave or increasing rents hugely during the Olympics and it worries the situation will get worse as the Games approach.

Housing Minister Grant Shapps said: "Landlords should be under no doubt that it is a criminal offence for them to evict a tenant without giving proper notice, and that anyone found guilty of doing this - or of harassing a tenant - could lead to a custodial sentence of up to two years."

The National Landlords Association condemned the practice, saying it was more beneficial to landlords to have a good, long-term tenant in their property.

Source: BBC News

]]>Mon, 07 May 2012 GMT0000001925http://www.121move.co.uk/news/01924/Amazon_to_join_the_High_StreetAmazon to join the High Street

Head of retail at commercial property specialist predicts the retailer will have physical outlets by 2020.

Figures published recently may show further decline for UK shopping centres, but Jones Lang Lasalle (JLL) property specialists believe that the sector could be revived by integrating online sales strategies and greater investment in regeneration.

The head of retail at Jones Lang Lasalle (JLL) said Amazon and Asos will be on the High Street in eight years’ time.

IPD, the industry benchmark, said shopping centres were 38.4 below their pre-recession values as it unveiled its Q1 property report at an event with the Investment Property Forum (IPF) today.

Speaking to property investors in London, Guy Grainger, head of retail at JLL, said: “With a period of flat sales growth it’s vital that investors pay attention to how much debt retailers have. Peacocks was a fundamentally sound business, but the debt dragged it down.

“The UK consumer has totally adapted to online retailing and we have more online sales than France and Germany added together. But online is not the Holy Grail and the property sector is not going to be killed by online - quite the opposite. A property strategy linked directly to online strategy is the key ingredient.

“Purely online retailers will have more impact with a multichannel strategy and I certainly believe that it won't be long before ASOS and Amazon have a physical presence.

“The future could be mixed for fashion retailers though. The nation is getting older and by 2020 there will be 15 per cent fewer 18-25 year olds, so the very congested fashion sector, which has been driving rents for some time, won’t have as many customers.

“However, in the short term, inflation on food and cotton is coming down, so for the rest of the year retailers should be able to protect their margins.”

The UK retail sector has seen a drop in capital values of 31 per cent since June 2007 and decline in rental values of 8.3 per cent over the last four years, according to IPD's Q1 report.

Central London was the only UK retail region that saw growth in capital value growth during Q1 March 2012 - everywhere else saw value decline, IPD said.

Shopping centres (including both in and out of town) have declined in capital value by 38.4 per cent since 2007.

However, when shopping centre statistics are broken down – out of town shopping centres have performed relatively well, with values recovering to within 22 per cent of their pre crash levels. Rental values have only declined 4.7 per cent during the same period.

Town centre shopping areas have seen the steepest decline. This is partly due to their age and to a lack of investment into the sector. Rents over the last five years have declined by 13 per cent.

Greg Mansell, senior researcher at IPD, said: “The retail sector has been the worst performing property sector in the UK over the last year, but these figures are a warning sign to investors not to abandon the retail sector.

"It is still the largest sector in the UK property market, and investors need to take more notice of their allocations and liabilities, and how these interact with the changing nature of the market. A retail renaissance is needed, not an exodus.”

Source: Toy News

]]>Mon, 07 May 2012 GMT0000001924http://www.121move.co.uk/news/01923/Valuations_fall_in_AprilValuations fall in April

The total number of residential valuations conducted during April fell by 32% compared to the previous month, claims Connells Survey & Valuation.

Despite the monthly fall the overall valuations market remains in stronger health than a year ago with Connells revealing it conducted 23% more valuations than in April 2011.

John Bagshaw, corporate services director of Connells Survey & Valuation, said: “After a hectic March by post-2008 standards, a combination of the hangover from the end of the stamp duty holiday and the interruption of the Easter holidays took its toll on the housing market in April. But the valuations market has not come to a standstill by any means and is stronger than a year ago.

“However for momentum to begin building again in the short-term, it’s crucial lenders don’t withdraw support for high loan to value lending in the face of a technical recession and the ongoing eurozone crisis.”

After the rush to beat the end of the stamp duty holiday in the first quarter April saw 28% fewer valuations for first-time buyers than in March.

Despite the monthly change first-time buyer activity represented a 15% increase compared to the same time last year and accounted for 31% of all valuations.

The number of valuations for owner-occupiers moving home fell back in April with 29% fewer than in March. On an annual basis activity increased by 12%.

Bagshaw said: “A blip in first-time buyer activity was to be expected after many buyers brought forward purchases to beat the end of the stamp duty exemption.

"In turn fewer chains were freed up reducing the number of homeowners able to move compared to March.

"In spite of this it is encouraging that both home mover and first-time buyer numbers are in better shape annually, pointing to underlying resilience in the market.”

Buy-to-let valuation activity recorded a seasonal decline of 32% on a monthly basis and increased by 68% annually - albeit from a low base.

Remortgaging also registered an annual increase, rising by 33% in April.

Bagshaw added: “Both buy-to-let and remortgaging have been key to the annual improvement in the valuations market. Buy-to-let mortgage rates have remained competitive in recent months helping to boost the demand from landlords looking to take advantage of healthy yields and strong underlying tenant demand.

“News that we are back in recession is likely to kick the prospect of a rate rise in the near future into the long-grass which will keep payments historically low for many borrowers, giving those on trackers less motivation to shop around. However, the trend of increasing variable rates will underpin demand for remortgaging and this sector is likely to see steady growth in coming months.”

Source: Mortgage Introducer

]]>Mon, 07 May 2012 GMT0000001923http://www.121move.co.uk/news/01922/GBP1%2C710_wiped_off_the_average_Welsh_home£1,710 wiped off the average Welsh home

The latest house price index from LSL Property Services plc and Acadametrics show house prices in Wales 0.6% lower than in February last year.
Annual prices falls in 9 of the past 12 months but there could be good news in the long-term: the average Welsh house price has doubled in the last 10 years.

Richard Sexton, director of e.surv, part of LSL Property Services, comments:

“The average Welsh homeowner has seen £1,710 wiped off the value of their property since December. Prices have fallen in nine of the last twelve months with fiscal austerity and a weak jobs market hitting house prices like a ton of bricks.

“The only people sustaining the housing market are the elderly and the wealthy. The first time buyer market has withered away. These older buyers are the only ones in a position to take advantage of record low mortgage rates, as they have been able to use the equity from their homes to secure cheap deals. This has created a two-tier market and disproportionate reliance on wealthier borrowers.

“While the high end of the market sees a steady flow of activity, the bottom end is in gridlock. Affordable rates are of little consolation to first time buyers who can’t raise the big deposits demanded by banks and building societies. This is suppressing activity and dragging down prices. First time buyer numbers could drop away even further now the stamp duty holiday has passed. What’s more, the cost of funding mortgages is increasing for banks, which will force them to scale back their lending to buyers with small deposits over the spring and early summer.

“Apart from the nation’s recent Grand Slam victory, the only bright spot is over the very long-term, where Welsh house prices have been considerably more buoyant than their Scottish and English counterparts. Wales and London are the only parts of the UK where prices have increased over the past 12 months. On top of that, Wales has seen the highest price rises over the last decade out of any region in the UK.

“And prices have risen in some areas, where spending cuts and the troubled jobs market don’t seem to have affected the local property market. As a result, banks and building societies are more willing to lend to borrowers in these areas.”

Dr Peter Williams, housing market specialist and Chairman of Acadametrics, comments:

"The average price of a house in Wales in February, at £151,986, fell a statistically insignificant £34 from the January price and is, in practical terms, unchanged. By remaining unchanged, however, February saw an end to three prior months of successive price falls, totalling a negative 2.0% loss, over the winter months.

"Although the Principality, as a whole, saw no change in prices in February, it was a different story at local level. Whilst Wrexham prices rose 2.2% in the month, mainly due to a rise in the average value of semi-detached properties, Carmarthenshire witnessed a −2.6% fall.

"Over 12 months, the average price of a house in Wales was −0.6% lower in February 2012 than in February 2011. As with monthly prices, this result at Principality level masks considerable variation, locally, from the −10.2% fall in Merthyr Tydfil to the +11.2% rise in nearby Blaenau Gwent, year on year. "

Source: My Introducer

]]>Mon, 07 May 2012 GMT0000001922http://www.121move.co.uk/news/01921/Google%27s_robot_cars_pass_driving_testGoogle's robot cars pass driving test

Google's autonomous cars have passed their first driving test in Nevada, which included a trip along the famous Las Vegas Strip.

The desert state is the first to grant the vehicles a licence to use public roads. They are controlled by computers processing a combination of mapping data, radar, laser sensors and video feeds.

Officials from the Nevada Department of Motor Vehicles rode in the cars "along freeways, state highways and neighborhoods both in Carson City and the busy Las Vegas Strip", they said in a statement.

It comes after Nevada passed laws to create a new type of licence for autonomous vehicles last year, which came into effect on 1 March.

The autonomous cars, based on Toyota Prius hybrid hatchbacks, will now be allowed on public roads for further development and testing, carrying a distinctive red licence plate with an infinity symbol on the left side.

“I felt using the infinity symbol was the best way to represent the ‘car of the future',” Nevada DMV director Bruce Breslow said.

“The unique red plate will be easily recognized by the public and law enforcement and will be used only for licensed autonomous test vehicles."

Google is one off several firms racing to develop cars able to drive themselves. It is competing with car manufacturers as well as military firms to develop the technology. The web giant's executive chairman Eric Schmidt has argued that the fact that current vehicles rely on human drivers is a "bug".

"It's amazing to me that we let humans drive cars," he said in 2010 as Google ramped up its research,in partnetship with Stanford University.

As well as Nevada, Google's home state of California is considering laws to allow autonomous cars on its roads.

"The vast majority of vehicle accidents are due to human error," California state Senator Alex Padilla said in March when he introduced autonomous car legislation.

"Through the use of computers, sensors and other systems, an autonomous vehicle is capable of analyzing the driving environment more quickly and operating the vehicle more safely."

Source: The Telegraph

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