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than it does for a country where prices are normally advertised as ‘offers over’ and once an offer is made it cannot be rescinded.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 Finder

Sophie Ridge writing in The News of The World on Sunday reported that Northern Rock aims to fast-track repossessions, sending in the bailiffs to 7,500 homes by Christmas.  The bank will take a particularly hard line with customers who are not expected to be able to get themselves back into the black.

The combination of 125pts mortgages, illness, no mortgage payment or income protection insurance and the end of low fixed rates means more and more people are falling behind with payments.

The NOTW quotes that 18,900 families lost homes in the first six months of the year and that the Council of Mortgage Lenders prediction remains 45,000.  Some of those affected will be Buy To Let investors losing an investment rather than a family home.

It would seem to us better for repossession to raise it’s ugly head sooner rather than later,  however painful it may be, because people tend to run up even more debt borrowing on credit cards with very high interest rates to make mortgage payments which exacerbates their liability in the long run if they aren’t able to turn things around.  This London Property Finder advises again make sure your mortgage is protected by appropriate insurance.

Technorati Tags: Arrears, Buy-to-let, London Property Finder, Mortgage arrears, Mortgage protection insurance, Repossessions

Tags: Arrears, Buy-to-let, London Property Finder, Mortgage arrears, Mortgage protection insurance, Repossessions