Musings of a London Property Search Agent.

London is bearing up well as the gap between asking prices and purchase prices continues to widen, according to new research published yesterday by the RICS.  Vendors are accepting an average of 9% below asking, with vendors in the North East accepting the most, 12.5% below. 
Scottish vendors are accepting 2.4% less, which appears less than it does for a country where prices are normally advertised as ‘offers over’ and once an offer is made it cannot be rescinded.  We have thought Scottish prices have been over-heated for some time, given the limited employment market and long-term demand.
Simon Rubinsohn, RICS chief economist commented:
€œWith housing transactions currently at a 30 year low, many vendors are being forced to lower their asking prices to achieve a sale in an ever shrinking market or they are being forced to rent their property until the market picks up.
In recent surveys, Chartered Surveyors have reported that some buy-to-let investors are re-entering the market to take advantage of rising yields.
In addition, €˜predatory buyers€™ have been hovering over the corpse of a stalling market with many others cut out by the lack of mortgage liquidity.
The gap between asking prices and selling prices could widen in the coming months as the downturn in the economy becomes more visible.  
The London market could be adversely affected as employment in the financial sector drops off.€  The advice of this London Propeerty Finder is to buy now before it is too late.

Technorati Tags: Buy-to-let, House Prices, London House Prices, London property, London Property Finder, London property market, London property prices, mortgage liquidity, North East property market, North East property prices, Scottish house prices, Scottish Property

Tags: Buy-to-let, House Prices, London House Prices, London property, London Property Finder, London property market, London property prices, mortgage liquidity, North East property market, North East property prices, Scottish house prices, Scottish Property

Musings of a London Property Finder

The media coverage of the government nationalisation of the mortgage arm of the Bradford and Bingley has been surprisingly on the button, as far as we have heard today.

So why is this thought to be a relatively good deal for the government and ultimately the tax-payer? 

Firstly the government have sold off the retail arm of Bradford & Bingley for £612 million for c. £20 billion of deposits and the government has in effect become the mortgage lender for mortgagees.  Long-term this isn’t a bad strategy, as long-term, any properties repossessed should be able to be sold to cover any mortgage arears and some will make money.  This means that when the financial system stabilises, the government should be able to sell on this part of the business.

Unlike the US, in the UK we have limited supply and high demand.  The credit crunch has had an effect on house price less because of a lack of demand but because people can’t get mortgages at the rates to which we have become accustomed, particularly first-time buyers, at the bottom of the food-chain.  But I digress.

We read that 60% of Bradford & Bingley lending was to buy-to-let landlords.  Profit to the taxpayer will depend to an extent on the canniness of B& Bs mortgagees.  One would hope that buy-to-let landlords will have purchased with a tight grip on the purse-strings.  If not, at least there should be a good 15% margin of error in most cases, unlike the Northern Rock, renowned for the 125% mortgage. 

And the other benefit of lending to buy-to-let landlords?  At least there should be rent coming in every month!  Call this London Property Finder for help in buying the right house at the right price.

Technorati Tags: Building Societies, Buy-to-let, First time buyers, government bail-out, House Prices, house supply and demand, landlords, London Propeerty Finder, mortgages

Tags: Building Societies, Buy-to-let, First time buyers, government bail-out, House Prices, house supply and demand, landlords, London Propeerty Finder, mortgages

Musings of a London Property Search Agent

House prices in most London Boroughs increased during the last 12 months, with 5 boroughs showing house price appreciation around 5% or more, according to the Land Registry which tracks home sale prices across England and Wales.

Musings of a London Property Search Agent

House prices in Kensington and Chelsea rose 9.4% since August last year and Westminster house prices rose 8.4%.  Prices in Brent, where significant monthly price rises and falls have been seen over the last 12 months, rose 5.5% and in Olympic boroughs Hackney and Tower Hamlets average house prices have risen 4.9% and 4.7% respectively.

London as a whole is down 3.2% which just shows how important location really is.  In general the prices in the South East are flat but many of the Home Counties are showing slight growth since the Credit Crunch began.  Desirable areas close to London have fared the best as can be seen below as Kent, Essex, Surrey, West Sussex, Thurrock and Windsor & Maidenhead all show slight house price growth versus a year ago.

So much for the gloom mongers forecasting a house price crash and 20% – 40% drops in a year!

• Essex                                 +0.2%
• Kent                                  +0.3%
• Surrey                               +0.7%
• West Sussex                     +0.5%
• Thurrock                           +1%
• Windsor & Maidenhead    +2.4%

Know your borough!  This London Property Search Agent does!

Technorati Tags: Kensington and Chelsea house prices, Kent house prices, London House Prices, London Property Search Agent, Rising house prices, Surrey house prices, Thurrock House prices, West Sussex house prices, Westminster house prices, Windsor and Maidenhead house prices

Tags: Kensington and Chelsea house prices, Kent house prices, London House Prices, London Property Search Agent, Rising house prices, Surrey house prices, Thurrock House prices, West Sussex house prices, Westminster house prices, Windsor and Maidenhead house prices