Surveyors clamp down in the wake of US housing crisis

As fears grow that the problems in the property market could cross the Atlantic, valuers are becoming more cautious with their valuations.

By Faith Archer, Daily Telegraph, 24 August 2007

Surveyors are starting to clamp down on mortgage valuations, as lenders prepare to protect themselves against the risk that house prices may falter and even fall.

As fears rise that the housing crisis under way in America could soon cross the Atlantic, it is more important than ever that vendors should consider all their options when trying to obtain the best price possible - full article

Buy-to-let less profitable but still popular

Investors are continuing to plough money into the buy-to-let market, despite fears that rising interest rates have made the sector un-sustainable.

By Jim Pickard, FT Commercial Property Correspondent - August 25 2007

Five increases in the cost of borrowing since last summer mean that the rent on a typical property no longer covers its mortgage costs, unless the buyer puts down a huge deposit - full article

Tremors shake UK’s commercial property market

As demand slumps, millions borrowed in the years of low interest rates are at risk, says Zoe Wood

Sunday August 26, 2007
The Observer

Turbulence in credit and equity markets is causing angst among Britain’s householders concerned that the crisis will dent the value of their property. But the hand-wringing is more pronounced among commercial property investors who borrowed hundreds of millions to buy assets during a golden age of low interest rates and huge price growth.

Experts were predicting a correction in the £700bn sector, with commercial prices expected to fall more than 10 per cent over the next three years, but the market turmoil has heightened fears that some owners will default, while demand will drop if business confidence is hit - full article

Turmoil to dent house price growth

Analysts are warning that the continued uncertainty on global financial markets could pose a threat to the value of British homes says Clare Francis.

Sunday 26 August 2007
The Sunday Times

THE meltdown that has rocked global stock markets over the past month has heightened fears of a sharp slowdown in the property market.

Analysts predict stagnation, even in London, and possibly price falls if the financial crisis spills over to the UK economy.

Even if it blows over, homeowners are warned that the highest interest rates for six years and affordability constraints could spell the end of the housing-market boom - full article

Holiday homes: A place that pays for itself

Can’t afford a place in the country? What if your dream getaway could pay for itself ? or even return a tidy profit ? At a Cotswolds resort, Chris Partridge meets the people who are letting their holiday homes do the hard work - full article

Buy-to-let: What all landlords need to know

They’re no longer easy money, but rental homes can be good earners. Norman Miller has the essential tips for beginners. For many years, buy-to-let seemed to be a dream investment – and for many people, it was. The deal was simple: get a cheap mortgage deal, buy a place anywhere you like from Clapham to Cleethorpes, select one of the many grateful tenants, and while you let the rent roll in you could watch capital values grow by 20 per cent a year.

But since the end of last year the equation has not been quite so simple. Interest rate rises have eaten into those easy profits, and warnings are being sounded that property prices may not carry on rising fast for much longer. Has the bubble burst? Well, no - full article

Letting Agent’s Renewal Fees

Rookie Landlords are often caught out by a short clause in their Letting Agent’s terms and conditions. It will look something like this:

“A fee of x % plus VAT will be charged for a tenancy renewal/extension for a second year or further period”

The fee is normally between 60% and 100% of that charged for the original let. The clause is usually tucked away on the last page of the document and many first time Landlords only become aware of it when they receive an invoice from their letting agent following a renewal. Their reaction is normally disbelief that an agent could charge such a large amount for what they see as re-typing a Tenancy Agreement.

Renewal fees are a long standing convention in the industry. Was the Government to pass a new law today making them illegal I suspect that we would see an immediate increase in the initial commission rate charged of between 20% and 30% as without renewal fees agents would need to take all of the commission upfront rather than on a pro-rata basis. The losers in such an arrangement would be those unlucky Landlords whose tenants only stay for one year and then move on.

Continue reading Letting Agent’s Renewal Fees…

Landlord Action celebrates eight years of trading

WHEN Landlord Action was founded eight years ago, property investment was still a relatively exclusive phenomenon amongst cash rich people who could buy a property outright.

Since those days the increase in buy-to-let mortgages and the crash in personal pensions has seen more people taking out loans to finance the purchase of a property in order to let it out.

With that there has been a rise in the problems associated with being a landlord.

Landlord Action founding director Paul Shamplina says: “Personal debt is increasing amongst tenants and landlords.”

Continue reading Landlord Action celebrates eight years of trading…

£20,000 fine for Landlord

TO MILLIONS of fans, he is known as the pin-up star of Liverpool-based television hits Brookside and Hollyoaks.

But actor Philip Olivier is now the holder of a less prestigious title.

He has just become the first person in Liverpool to be prosecuted for breaking a strict new law aimed at raising standards in rented houses.

Olivier was fined £20,000 by magistrates for being the landlord of a multi-occupancy house - a property rented out to five or more people - without a licence - full article.

House price inflation is soaring

The UK house price inflation rate rose from 10.8 per cent in May 2007 to 12.1 per cent in June 2007…

Between May and June there was a rise of 1.6 per cent in the prices index of properties bought compared with a smaller rise of 0.4 per cent over the same period last year resulting in an increase in the inflation rate - full article