News
Bank of England to get new powers to limit mortgage amounts
Wednesday 8th February 2012
Chancellor George Osborne is set to hand new powers to the Bank of England to regulate the mortgage market by allowing it to set loan-to-value ratio limits.
The new powers would be aimed at controlling busts and booms, by banning unsustainable mortgages and preventing another housing bubble, or stimulating more lending.
The Financial Policy Committee (FPC) at the Bank will be able to set LTV limits – for example, setting them at 75% if it feared a credit bubble, or at 95% if it wanted to encourage more lending.
Osborne told MPs in a debate on the Finance Bill that the new committee, which has already been set up but does not come into legal force until next January, is to be led by the Governor of the Bank of England.
He said: “Its job is not just to try to moderate a credit boom but to try to alleviate a credit bust.”
The committee’s job will be to prevent lenders repeating the scenario of the pre-2008 credit crunch. Then it was commonplace to offer mortgages with 125% LTVs in the belief that property prices would continue rising, along with people’s ability to repay their loans.
Osborne said that the previous light-touch regulation had been an ‘unmitigated disaster’ for the economy. He said the FCP would be ‘entrusted with the stability for the whole financial system’.
Osborne said: “In many senses, this is the bread and butter of people’s daily lives, and it is very important that we understand that, as we create these instruments of policy that don’t currently exist.”
He said of the Bank’s new powers that it did not have to use them, adding: “I should say that these are just possibilities – they are potential tools that the committee might want to use.”
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Royal street party fever to grip nation once more
Monday, 23rd January 2012
Royal street party fever looks set to sweep the nation again this summer as revellers start planning their Queen's Diamond Jubilee celebrations.
Based on the current groundswell of public interest, it's expected the number of street parties held over the June weekend, which also includes the annual Big Lunch, will surpass last year's total for the Royal Wedding.
Despite still being five months off, councils are already being inundated with inquiries from residents wanting to mark the Jubilee, and are pulling out the stops to make organising events as straightforward as possible. Many are also launching initiatives to support their communities such as waiving road closures fees, offering cash grants and giving out party packs.
Last year councils across England and Wales received about 5,500 road closure applications for Royal Wedding street parties. Countless other celebrations also took place in gardens, on pavements, in pubs, parks and village greens, and many councils laid on their own parties for residents.
Councillor Chris White, Chair of the Local Government Association's Culture, Tourism and Sport Board, said:
"Councils are already receiving hundreds of inquiries from residents wanting to hold Jubilee street parties. There was a lot of interest last year for the Royal Wedding but it wasn't until much nearer the event. It really seems as if Britain's street party tradition has been well and truly resurrected and people are already planning to dust down their fold-out tables and unpack the bunting.
"Bringing communities together is something councils see as one of their key roles and, as they did for the Royal Wedding, they're pulling out all the stops to make organising street parties as easy as possible. Straightforward guidance is readily available from council offices and online, along with simple application forms. Many councils have waived road closure and insurance fees where possible, and others are giving out grants to support communities in marking the special occasion.
"It's fantastic that Jubilee weekend looks set to be a great few days with people everywhere coming together to enjoy a good old knees-up. There will of course be cases where a genuine concern means a proposed celebration may not be able to go ahead, but through common sense and talking to each other councils and residents should be able to find amicable solutions to make a street party happen."
The LGA has been working with councils and their communities to find any bureaucratic sticking points which may still exist in event-organising and ways of overcoming them. In March it's launching an online forum where councils can share experiences and ideas and community groups can raise any issues they've come across locally. A DirectGov website has also been launched this year where residents can enter their postcode and be directed straight to their local council's website to find advice on holding a street party in their neighbourhood.
See the link below for general guidance and a Q&A on street parties, as well as a link to the DirectGov site
http://www.communities.gov.uk/publications/communities/streetpartyguide
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New Facebook app launches to sell houses
Friday 20th January 2012
The first property transactions app on Facebook was due to go live first thing this morning, with over 400,000 properties.
Property Place can be used by both private sellers and landlords as well as by agents, and claims to be the first use of Facebook in the world for the selling and lettig of properties.
There is also a facility for people to find and chat to potential room-mates, for a £35 fee.
Almost half the population of the UK (29.9m) are now estimated to be on Facebook, so the theoretical audience is huge.
Simon Gresswell says "Finlay Brewer take the new media opportunities very seriously and we are testing Property Place over the next few months.
With nearly 30 million of us using Facebook in the UK, it could be part of the future of buying and renting property.”
http://apps.facebook.com/propertyplace/
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London micro-markets continue to buck the trend
16th January 2012
London starts the new year again proving it has its own micro-markets where housing demand continues to outstrip supply.
New sellers in the capital have had the confidence to increase their month-on-month asking prices by 0.8% (£3,453), compared to a fall of 1.5% in the rest of the country (£2,792).
This is a continuation of the trend seen over the last year, with asking prices in London now 6.1% higher than a year ago. The rest of the country recorded a combined fall of 1.7% over the same period.
Miles Shipside, director of Rightmove comments: “Depending on local market conditions, there are differing pressures on the direction of prices. The lack of property coming to market in the London area over the last year combined with buyer demand has helped to buoy new sellers’ asking prices in most locations. Prices will be receiving a further boost as estate agents compete to attract fresh stock for the year ahead.”
January often sees the beginning of a ‘spring bounce’ in the prices of properties coming to market, and there is again evidence of this in 2012, where the overall monthly period rise of 0.8% in new seller asking prices was boosted by a rise of 1.8% (£7,605) in the first week of 2012.
Shipside comments: “As we move into the more active spring market with a shortage of new supply, prices will rise where the local market or a particular estate agent is short of a type or style of stock. However, asking more for your property can only be successful if your target buying audience can raise the necessary funds. The market fragmentation caused by the credit crunch means that success in selling now requires a more careful and complex micro-market analysis, rather than a wishful price-punt to see what happens.”
There are still signs that the shortage of stock coming to market in the capital looks set to continue this year.
Rightmove recorded an average of 1,396 new properties a week coming to market this month, 12% down on the same period a year ago. Indeed the first week of 2012 has seen fewer new listings than in the first week of 2011, 2010 and 2009.
Shipside adds: “Sellers that own a property that offers buyers something really special in terms of value, potential, location or quality of finish will be very popular with both estate agents fighting for their business and buyers fighting for their property.”
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Another lender increases buy-to-let LTV to 80%
Friday 13th January 2012
Leeds Building Society has increased its LTV for buy-to-let from 70% to 80% on two products.
Its two-year 80% fix offers a rate of 5.69% with a £199 booking fee and an £800 completion fee.
Another two-year fix is available at 80% LTV at a rate of 5.99%, which comes with a £199 booking fee but no completion fee.
The other buy-to-let products offered by Leeds still have a maximum LTV of 70%.
This week, Aldermore also raised its LTV on buy-to-let products to 80%.
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Semi-commercial property giving 30% higher returns
Thursday 12th January 2012
Semi-commercial property – for example, shops mixed with flats – is giving 30% higher returns to investors than ‘vanilla’ or routine buy-to-let.
Mortgages for Business, analysing semi-commercial property for the first time, says that semi-commercial investments yielded 7.8% last year, whilst ordinary buy-to-let yield was typically 6.1%.
Complex deals provided better returns at 7.8%, with Houses in Multiple Occupation doing best of all, yielding 9.9%.
David Whittaker, managing director at Mortgages for Business, said: “We have broadened our analysis to cover freehold buildings where there is a small commercial element but the greater part is residential.
“This is in response to demand from landlords whose portfolios are more diverse than the categories we have covered thus far.
“We hope it generates greater debate for those many landlords being pressured to refinance by the Irish banks and, closer to home, RBS and LBG.”
In general the number of products on the market has risen by 48% since Q1 of 2011, and is also higher than the 403 products available in Q2. However, the total number of buy-to-let mortgage products fell slightly from 455 in Q3 to 442 in Q4, reversing the positive trend of three consecutive quarters of growth.
Abbey for Intermediaries (Santander) was the only new entrant to the lending market over the last three months, taking the total number of BTL lenders to 25.
Whittaker said: “The average number of products available has fallen marginally, but that’s more a reflection on an exceptionally strong third quarter than it is of a market slowdown.
“Buy-to-let is one of the few segments of the mortgage market that is really flourishing, and investors are still seeing strong returns.”
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Public urged to be part of the solution to rough sleeping this Christmas
19th December 2011
Housing Minister Grant Shapps has urged people across the country to help solve rough sleeping this Christmas by calling local hotlines if they see someone sleeping on the pavement in their neighbourhood.
The Minister for Housing slept rough himself in 2007 in order to highlight the plight of rough sleepers and recalling his night on the street he said:
"In a civilised society no one should have to sleep on the pavement."
He acknowledged that factors like relationship breakdown can lead to sudden homelessness, but said that the Government is committed to its recently launched No Second Night Out policy.
Now the Minister has appealed to the public to help rough sleepers by calling one of the 24-hour hotlines to bring urgent assistance to rough sleepers.
For the first time, a complete list of these hotline numbers will be available on the Communities website, the Minister announced as he visited Emmaus in St Albans - a project where formerly homeless residents work to restore second-hand furniture and get their lives back on track.
He also announced his New Year's resolution - to establish a new national single phone number which will provide a central point of contact for people across the country to get help for rough sleepers in their neighbourhood.
Based on London's No Second Night Out number, introduced by the Mayor, this new phone line and website will ensure anyone wanting to get help for rough sleepers in their area will know where to go and who to call.
Housing Minister Grant Shapps said:
"Christmas is a time for Goodwill, and with winter rapidly approaching, it's more important than ever to ensure that help and shelter are available for those who need it most.
"We have some of the strongest homelessness protection in the world and councils have a responsibility to ensure that their residents aren't 'roofless' in their area, so I'm calling on members of the public to help them achieve this.
"It is my New Year's resolution to ensure that a national 'No Second Night Out' hotline is in place by next Christmas, but there are already many local homelessness hotlines available, from Nottingham to Norwich. These numbers are now posted in one place on the Communities website. So my message is simple: if you see someone sleeping rough, please bring them the gift of shelter this Christmas."
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Welcome to the new Finlay Brewer Website
1st December 2011
Yes, if you are reading this you have found our new website. We hope it brings you all the property information you need plus more detail on the area and the team. The new site will be upgraded regularly so if there are any features that don't work or just irritate you please click here to drop us a line.
Future features include a local business links page and searchable maps.
We hope you enjoy your visit.
All at Finlay Brewer
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Tenants have to find more to put down as deposit
Friday 25th November 2011
Tenancy deposit protection scheme my|deposits says that the average tenancy deposit has increased by £125 in the past year, from £985 to £1,110.
Landlords and agents in London take the biggest deposits from tenants (£1,495) when letting property, while the average deposit size was smallest in the Yorkshire and Humber (£568).
Eddie Hooker, the scheme’s chief executive, said: “With rents continuing to rise, landlords and agents are understandably taking larger deposits to help protect their investments.
“The increase in the assured shorthold tenancy threshold, with tenancies up to £100,000 per annum now requiring deposit protection, has also increased the number of tenancies requiring deposit protection.”
Average deposit sizes across England and Wales:-
East Midlands: £916 East of England: £961 London: £1494 North-East: £665 North-West: £693 South-East: £1069 South-West: £702 West Midlands: £781 Yorkshire and Humber: £568 Wales: £747
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Cost of housing second child is £60,000
The additional cost of housing a second child in the UK is £59,500, with the average three bedroom property costing 38% more than a home with two bedrooms, research from HSBC has revealed.
The additional cost of a third bedroom represents 1.6 times annual household income in the country.
HSBC surveyed 1000 parents with two children or more to find out the changes they made to their lifestyles after having children. Some 60% of parents have moved house as a result of having their first or second child, with 35% moving from a two to a three-bedroom property, 11% from a one to a two bed and 13% from a three to a four bed.
Bruno Genovese, Head of Savings at HSBC, said: "There are certainly many considerations to take when planning for your first child; however the second child seems to be a catalyst for many families moving to a larger home which is often the largest financial outlay they will ever undertake.
"This research highlights the importance of saving to ensure you are able to cope financially with the cost implications of having a family."
Not surprisingly, the research reveals that London is the most expensive place to house a second child; the average cost of a third bedroom in the Capital is £163,270 or 3.6 times gross annual household income. This is five times the cost in Yorkshire which is the most affordable place to have a second child; the additional price of a third bedroom (£31,467) is almost equal to household income in the region (£32,500). In terms of the percentage increase in property price, the East Midlands is the most expensive region in which to upsize, with the average three bedroom property costing 42% more than a two bedroom home.
London and other Southern counties including Hertfordshire, Berkshire and Surrey are the most expensive places to house a second child with the cost of a third bedroom topping £100,000 in each of these places. In comparison Scottish and Welsh counties dominate the most affordable places to move up a bedroom - with the cost of a third bedroom in Swansea just £8000.
Other costly measures taken by parents with two children or more include buying a larger car, more than half (51%) of parents did this, potentially costing them an additional £17,150. The difference in price for a new Ford Fiesta compared to the more family friendly Ford Focus is £6000 or up to the even larger Ford Galaxy is £17,150. One in ten (10%) added an extension to their home, costing an average £21,256 and 6% undertook a loft conversion, with an average cost of £17,500.
Rise in Buy-to-Let Advice
The latest unbiased.co.uk Advice Drivers report found that buy-to-let is now the third most sought after area of advice on the professional advice website's "find a mortgage adviser" search.
Consumer enquiries for buy-to-let whole of market mortgage advice rose from 17% in September to 25% in October.
First-time buyer advice remained the No1 advice driver on unbiased.co.uk's "find a mortgage adviser" service, however searches fell slightly from 39% in September to 35% in October.
Personal retirement planning ranked top of all "find an IFA" searches in October, driving 37% of enquiries and remaining the most sought after area of advice. The report also found that demand for investment and savings advice remained high, accounting for 25% of searches.
Karen Barrett, Chief Executive of unbiased.co.uk, said: "Our latest figures reveal that enquiries for buy-to-let advice have seen a significant rise from September to October, suggesting that consumers are keen to investigate the possibility of buying additional properties to rent out.
"This appetite has been fuelled by rising rental yields, making the buy-to-let market an attractive investment opportunity. With the current low base rate lenders are offering mortgage deals that are affordable and are reducing the amount of deposit required.
"It's great to see that consumers are seeking whole of market mortgage advice. This is important as it ensures consumers have a complete overview of all the mortgages on offer and are choosing the right loan and products for their financial circumstances.
"Looking at the whole of the financial advice market, pensions and retirement planning continue to dominate the news agenda as people may need to work longer to fund their retirement. With Financial Planning Week coming up, a discussion with an independent financial adviser is a good way to ensure you are planning effectively for retirement."
Finlay Brewer News
Qualified! Success!
Four intrepid team members completed their ARLA and NAEA exams this week.
Emma Harvey and Alex Broadfoot both passed their Technical Award for Residential Letting and Property Management and now will become members of ARLA.
Not to be outdone our sales team also managed two qualifications with Claire Young and Nawal Mahmood both passing their Technical Award, Sale of Residential Property which qualifies them both to become members of NAEA. 
New Arivals
Congratulations and welcome to two new Finlay Brewer Junior team members: Our Super Saturday Broker Dina and her partner Dr Wayne have produced their first born, Gabriel; and one of our Gas Safe Engineers, James of Vogue Heating, and his partner are proud to introduce Maximus. Good luck to both families and enjoy your first Christmas as three!
Brook Green Bugle
Finlay Brewer are deighted to be supporting Brook Green's own community website throughout 2012. Have a look at www.brookgreenbugle.com!
Poppies 2011
Many thanks to the kind generosity of our staff and visitors to our shop, we raised over £200 for the Royal British Legion Poppy Appeal.