Musing of a London Property Finder

The Bank of England reduced the official base rate by a further 50 points today taking interest rates to a record low of 0.5%.  Citing projections that Consumer Price Index or CPI Inflation will fall below 2% in the second half of the year, the Monetary Policy Committee also announced a £75 billion programme of asset purchases as an additional measure to ease deflationary pressure. 

The news has been met with joy by borrowers but has been widely criticised by many concerned that the rate cut undermines savers income and exchange rates.  For those in stable employment, there has never been a better time to be a debtor, particularly for mortgagees on variable rate mortgages with no minimum interest rate. Many borrowers are saving in excess of £2,500 a year for each £100,000 of outstanding motgage borrowing.

Fortunately for property search agents like us, interest rate cuts are good news.  Now is a great time to buy as long as you get a reasonable discount off an accurate valuation.  So you see, every cloud has a silver lining.  Instead of investing in boring old gilts – maybe now is the time to think property instead?

London Property Search Agents, Brighton Property Search Agents, offer a nationwide Property Search on application

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Tags: Bank of England Base Rate, Brighton Property Search Agents, Intrest Rates, London Property Search Agents, Monetary Policy Committee, property search agents

Musings of a London Property Search Agent

The Telegraph reports that private equity group BC Partners who bought Foxtons from founder Jon Hunt last year for a reputed £390 million, are in discussions with Rothschilds to help restructure debt.  Liam Vaughan writes that the group are looking to refinance over £250 million of debt which is currently costing circa £26 million a year in interest payments alone.

The group are not reportedly looking to shed staff or branches but hoping to cut costs through clever refinancing to improve cash flow to see them though the current difficult trading period.  Anecdotally, however London Property Search Agents like us will know that since a high proportion of staff earnings at Foxtons are commission based, many members of staff have already left.

Technorati Tags: Estate Agents News, Foxtons, london property search, London Property Search Agents

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Musings of a London Property Search Agent

Demand for residential rental property continues to grow according to the Quarterly Residential Lettings Survey published by the RICS (Royal Institution of Chartered Surveyors) .

RICS members also report rent increases and a rise in yields as the credit crunch continues to prevent those without adequate savings climbing onto the property ladder and other buyers postpone a purchase. Interestingly, whilst they report a significant rise in rents across the South East, their findings suggest that Greater London has seen the weakest rental growth, but as with all surveys, it all rather depends on location.

The British preference for houses over flats has fuelled the boom. Supply and demand for houses continues to grow and yields have increased at a faster pace for houses as for flats. The slow sales market has persuaded would-be sellers to rent their homes instead of putting them on the market and buyers hoping for a slump are renting instead of buying. The increase in yields for houses shows that the supply: demand ratio is still tipped towards landlords, which will persuade many to buy again.

From our perspective, as London Property Search Agents, first time buyer enquiries have increased exponentially this year as people want to get on to the property ladder but see the need for professional help in this marketplace. It is all very well waiting for the bottom of the market, but if there isn’t much difference between renting and buying then why wait? You should be able to buy the right property at the right price regardless of the market. If you know what you are doing and if you have an affordable mortgage, you shouldn’t lose money in the long term.

This London Property Search Agent is waiting to help you.

Technorati Tags: House rents rise, London Property Search Agents, London Property to rent, Rental market buoyant, South East rent rises

Tags: House rents rise, London Property Search Agents, London Property to rent, Rental market buoyant, South East rent rises