Should I buy the house of my dreams even though the lovely conservatory extension has never had planning permission?

I am really worried as I have had my offer accepted and am literally due to exchange contracts next week, my Conveyancer has pointed out to me that the conservatory that was added on, prior to the current owner moving in, has no planning permission.

I am having conflicting advice from everyone. The local council claim that as the conservatory has been standing for more than five years they cannot force me to take it down. My surveyor suggests that I take out an indemnity policy as back up. The estate agent recommends indemnity insurance. My Conveyancer has advised me not to go ahead with the purchase as we do not know the condition of the unplanned conservatory.

Ceri’s answer

An indemnity policy is to insure against the possibility of the council enforcing you to rectify any building work done without permission at your cost. The council can only issue this within four years of the date the un approved work took place. As you are now passed that time frame there’s no risk of enforcement action as far as planning permission goes.

 

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This is a test to add a blog entry!

 

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Creative selling

Literally anyone that is remotely related to the property market will tell you that it is really going through a rough old time. The recession, government changes and a general downturn in spending has meant that houses on the market aren’t going anywhere, or at least not quickly enough.

There are those that have had their homes up for sale for so long that they feel they will never move, perhaps they have even only had one viewing!

 

Whilst people will suggest they lower the price of the house, this is not always possible for the homeowner. Those that can afford to do this have found that online property sites have been useful.

The auction format means that more often than not the house is sold for less than the market may offer but it will provide a quick property sale which for many, is highly desirable.

 

If there is absolutely no interest what so ever, it may be time to get creative. An owner in Cardiff decided to offer £15,000 cash reward for anyone that can locate a purchaser for them. It is all about maximising your property’s profile.

Another enterprising seller from The Gower decided that the purchaser of his large beach fronted property will also get his brand new boat free.

 If the going gets really tough, consider what else you could offer alongside your property to make your home even more appealing to a potential purchaser.

 

Did the bank bail out and ultra-low interest rates work?

I think that in the short term this has worked, whether it will continue to work over the next five years is, in my opinion, uncertain. I think that in 15 or 20 years time the view will be rock solid.

This will be down to the fact that Britain is a closed- shores market with limited supply, now funding has been axed we are unlikely to see any real supply of new builds. We are an ever growing Island, the immigrants did not all go home and the population is rising at a rapid rate. So all that is happening now involving finance and sentiment is no indication of the future.

 

 

Buy-to-let back in fashion

They are back and very excited! There was a much publicised meltdown of this sector a couple of years ago, but they have found their mojo and are off again..

A report just in from the Council for Mortgage Lenders suggests that buy-to-let lending is up 14% on last year.

It is not only long standing landlords that are emerging with renewed interest, it is also new blood looking to get involved.

There are many, most, being first time buyers that are struggling to get a mortgage, who have no option but to rent. There is certainly a captive audience out there. We may even turn into a nation of renters!

Landlords to face fine if they are energy inefficient

The government is to heat up legislation forcing landlords to pay a fine if they rent properties without proper insulation.The new strictures on the quality of homes are included in the "green deal" which the government will put before parliament in December.

By the autumn of 2012, the government says the scheme will enable homeowners to make their house or flat energy-efficient with no immediate payments.Companies would install loft and cavity-wall insulation draught-proof doors and windows and the homeowner would pay the firm back through their energy bills over up to 20 years. The aim would be for the homeowner to barely notice the repayments due to lower energy bills.

Recent attempts to encourage private landlords to improve their housing stock have been unsuccessful. In the first two years of the carbon emissions reduction target scheme, only 1.9% of loft insulation installations were in the private rental sector compared to 91% in the owner-occupier sector.

The government will press councils to use existing legislation more actively, under which they are able to compel a landlord to carry out the work or do the work themselves and charge the landlord. They can also impose a fine of £5,000.

The forthcoming legislation would mean that by 2015, any tenant who asks for energy efficiency improvements cannot be reasonably refused by landlords. Local authorities could have the power to insist landlords improve the worst-performing properties.

The Facts on Fixtures and Fittings

The legal bit

What exactly are fixtures and fittings? We are constantly being asked to clarify this topic.What should people take or leave behind, and what should they hope to find in their new property? This can cause some confusion and may even become quite contentious. There is not a definitive law to express exactly which items should be taken or left behind during the sale or purchase of a property.

There are always different expectations with regards to this issue. It is prudent to clarify exactly what will be included at the start of the sale proceedings. Legally speaking the seller is not obliged to leave any fixtures or fittings behind, but the onus is upon them to state exactly what they are prepared to leave. A good way to avoid any misunderstandings is to create an inventory which is then attached to the sales contract. This lets all parties know in black and white exactly what the score is.

If this inventory is not formed, it can lead to assumptions and misunderstandings, if you have removed something that was thought to be remaining, you could actually find yourself in a small claims court!

What is a Fixture/Fitting?

A fixture is understood to be any item that is bolted to the floor or walls, a fitting is any item that is freestanding or hung by a hook or nail.

Below is a list of items that usually fall into these categories.

Fixtures

Light fitments

Central-heating boilers and radiators

Built in wardrobes/cupboards (e.g. if they use a wall to form one of their sides and would thus be incomplete if they were removed)

Bathroom suites (sinks/baths/toilets)

Plugs

Kitchen units

Wall paintings

Fittings

Fittings

Paintings or mirrors that are not bolted but hung or screwed to a wall.

Carpets

Curtains and curtain rails

Free-standing ovens, refrigerators and washing machines

Beds/sofas and other free standing items of furniture

Lampshades

Television aerials and satellite dishes

How to Negotiate

Ascertain from the outset which items are fixtures and which are fittings, this will avoid confusion at a later date.State coolly and calmly which fixtures and fittings you would like to remain in the property, many a sale falls through due to a disagreement over the finer details.

Having a friendly demeanour when discussing these matters will certainly make the opposite side more accommodating.

Consider which fixtures and fittings you really want to take with you, it is quite pointless insisting on keeping the shower door if you are going to get rid of it as soon as you move house.

Don’t make unreasonable demands, it could strain the relationship that you have, and make any further negotiations difficult to say the least.

As soon as firm decisions have been made with regards to the fixtures and fittings, it should be logged down to avoid any confusion or contentions further down the line.

The issue of fixtures and fittings is not a small one, these items can add up to thousands of pounds and may make a big difference to the monetary worth of a property.

To replace all fitted and freestanding furniture, central heating fixtures, telephones, curtains, curtain poles, satellite dishes, fireplaces and external dustbins would probably cost the buyer somewhere in the region of £15,000.

It is definitely worth taking the time to clarify these details. It will most certainly be well worth your while. It will avoid any unnecessary disagreements and possibly legal trouble further down the track, not to mention saving you money!

Average price of a house is now £162,096, falling 3.6% last month.

House prices in the UK fell 3.6 per cent last month, according to the Halifax survey, marking the biggest monthly fall on record.The average price of a house is now £162,096.

This has increased the fear of a housing market crash in the fragile British economy, which is awaiting the Government's Comprehensive Spending Review that could result in extensive cuts to public spending and the loss of thousands of public sector jobs.

However, Halifax downplayed the significance of the record figure saying quarterly figures, rather than monthly measurements, provide a better assessment of underlying trends.House prices in the third quarter of 2010 were 0.9 per cent lower than in the second quarter of 2010, said Halifax's chief economist Martin Ellis.

According to him, it is too early to conclude that September's fall marks the beginning of a sustained period of declining house prices. Reports note that the survey's finding of the record decline has come just a day after the International Monetary Fund warned that UK house prices remained too high and could fall.

Conveyancing Advice

The majority of client’s main concern is how long the conveyancing process will take.
Conveyancing solicitors should always do their best to work to your particular time frame, but this is dependant on the particular circumstances of your conveyancing transaction.

Industry statistics would suggest that a standard sale or purchase will take between six to twelve weeks to complete. This may, however, vary.
A remortgage or transfer of equity transaction should take less time but this is not always the case. Please be aware that where other parties such as mortgage lenders are required to execute documentation, then delays are inevitable in most instances.

It is of course possible to complete conveyancing in a shorter timescale. However, all parties must but be committed to these timescales, and in working hard to achieve them.
Complications, such as mortgage finance being arranged, can delay progress and can affect the desired timescale from being achieved.

If your conveyancing is of an extremely urgent nature, you should discuss time saving options with your conveyancing solicitor who should provide you with the appropriate legal advice if you decide to proceed in this way.

Please note that if additional work is required to achieve your expectations your property lawyer may need to charge you extra conveyancing fees. Your solicitor should inform you of such increased legal fees and disbursements.

At Convey Law , we will never be in a position to guarantee that your required timescales will be achieved, no matter how much extra work is undertaken by us. We do however promise to do our utmost to bring matters to a speedy conclusion. Please advise your conveyancing solicitor in writing at the beginning of your sale or purchase if timescales are an issue to you.

Just how much of the asking price are people paying out?

On the list of trickiest chores for anybody searching for a house is working out how much of an asking price the vendor is actually seeking to receive.Take a look at your regional property market and there will clearly be some homes which are heavily overpriced and several which have been placed on at a price which should make sure they sell quickly.In many cases and certainly right now, the latter is far rarer than the former.

When it concerns selling and buying,you don’t wish to accept less than the maximum for your home, nevertheless, you would like those people selling the properties you are considering, to wake up and lower their absurdly high prices.The problem is an investor who may have turned a large profit, will need a lower price than an owner occupier who needs as much as is possible to maneuver up the ladder.

An individual wanting to desperately be free from a mortgage they're not able to afford will typically take an offer that basically clears the debt.On the other hand homeowners who wish to trade up, but don't have any pressing need to and like where they live, are a lot more unlikely to take a low offer.

That makes it a good idea when seriously thinking of buying somewhere to find out as much with regards to the sellers and their motivation as possible and be ready to accept that although some will take a cheeky offer, others will sit tight.Homeowners looking to move in the same popular area, need as much as possible to bridge the gap upwards.Low interest rates are keeping many out of the forced sellers bracket.

But things are changing according to the latest Hometrack report. It says sale prices as a percentage of asking prices are falling and properties are remaining on the market for longer.

Conveyancing Advice

The majority of client’s main concern is how long the conveyancing process will take.
Conveyancing solicitors should always do their best to work to your particular time frame, but this is dependant on the particular circumstances of your conveyancing transaction.

Industry statistics would suggest that a standard sale or purchase will take between six to twelve weeks to complete. This may, however, vary.
A remortgage or transfer of equity transaction should take less time but this is not always the case. Please be aware that where other parties such as mortgage lenders are required to execute documentation, then delays are inevitable in most instances.

It is of course possible to complete conveyancing in a shorter timescale. However, all parties must but be committed to these timescales, and in working hard to achieve them.
Complications, such as mortgage finance being arranged, can delay progress and can affect the desired timescale from being achieved.

If your conveyancing is of an extremely urgent nature, you should discuss time saving options with your conveyancing solicitor who should provide you with the appropriate legal advice if you decide to proceed in this way.

Please note that if additional work is required to achieve your expectations your property lawyer may need to charge you extra conveyancing fees. Your solicitor should inform you of such increased legal fees and disbursements.

At Convey Law , we will never be in a position to guarantee that your required timescales will be achieved, no matter how much extra work is undertaken by us. We do however promise to do our utmost to bring matters to a speedy conclusion. Please advise your conveyancing solicitor in writing at the beginning of your sale or purchase if timescales are an issue to you.

Online Conveyancing can be quick and hassle-free

Online Conveyancing can be quick and hassle-free

Every day, thousands of property transactions take place in the UK but not a single one is legally completed without the proper conveyancing process. Whether one is buying, selling, re-mortgaging or leasing commercial or residential property, conveyancing is crucial to ensure that the property is legally transferred from the seller to the buyer. Conveyancing is a legal process and worth while for both buyer and seller. DIY conveyancing can be difficult and time consuming. Therefore, there are several advantages to using conveyancing services. Instead of wasting time with paperwork, fees’, filling out forms and document searches yourself; it is always convenient to approach a professional Conveyancer to handle everything on your behalf. Property conveyancers are the people who can help you with your conveyancing process by thoroughly guiding you throughout the property transaction. Online Conveyancing With the increasing demand for conveyancing, various online conveyancing firms have sprung up to help those who lack legal expertise to complete the legal process of conveyancing. By preparing legal documents, getting them signed by parties involved in transactions, submitting those documents to court and paying necessary taxes and duties on time, online conveyancers help people to avoid the legal hassles and also speed up the conveyancing process. Whether you want to sell, purchase, mortgage/re-mortgage, lease, enfranchise, or transfer residential or commercial property; they help by saving you time and money. Being a professional, conveyancing solicitor, they follow a streamlined process and work with great diligence and proficiency, which ultimately saves you time and money and also speeds up the conveyancing system. Getting help from online conveyancing firms is a good idea to save additional money and time, for the reason that online conveyancing is faster than conventional conveyancing. The best part about online conveyancing is that it provides you conveyancing services at highly competitive prices. Approaching an online firm is fairly easy, but it is advised that you choose the one that is most experienced and offers services that meets your individual conveyancing needs and budget. Although an online conveyancing quote is a quick and simple way of getting several conveyancing quotes, never forget to ask the online conveyancing firm about the hidden costs or additional fees. If you are also involved in any form of commercial or residential property dealing, try to employee the services of any online conveyancing lawyer or firm to take care of the entire conveyancing services from the beginning till the very end. By carrying out good research, you can get cheap conveyancing services with peace of mind.

 

 

 

Sellers drop prices to lure buyers

New sellers have dropped their asking prices by 1.1% to create a national average asking price of £229,767 in a bid to help lure buyers.

It means prices have been reduced by 3.4% in the last three months, according to Rightmove’s house price index for September.

On a regional basis, asking prices declined the furthest in the East Midlands, down 4.4% to £161,603. On an annual basis, prices in the North and the South East saw the sharpest increases, up 4.6% to £151,795 and £298,903 respectively.

Miles Shipside, commercial director for the portal, says: "The double-dippers will be able to point to a clear downward trend, with new sellers dropping their asking prices for three months on the bounce. They can cite tough competition amongst sellers and agents struggling to find proceedable buyers for their record levels of unsold stock."

The number of new properties to have been listed on the portal this month has declined to 26,000 – the lowest volume since April.

The average number of properties for sale per estate agent is now at 79.

The survey follows a poll undertaken by national opinion pollster YouGov on behalf of the Council of Mortgage Lenders, which suggests that 76% of individuals polled have aspirations of owning their own home in the next two years, which is down from the 78% the last time the survey was undertaken in 2007.

The CML attributes the slide to a substantially lower short-term appetite (42%) for home ownership among adults aged 18 to 24, due to their desire for greater flexibility and mobility in their living arrangements and a lack of affordability.

 

Rent A Room!

Bedrooms across the land are being vacated as students head to university. It can be a sad time for parents, but there are also opportunities knocking on the door. New-found space means new chances to bolster the family's finances. of course, rooms will need to be made available when students return for weekend visits and the holidays, but it's possible to find flexible lodgers - fellow students, tourists or the coveted 'Monday to Friday' tenant.Renting out a grown-up child's room is a great idea for empty-nesters. For students, a room in a house can cost £348 a month, compared with £409 living in halls.Cities with the highest proportion of student lodgers include Edinburgh, oxford, Cambridge, Aberdeen and Exeter, where room rents vary between £366 and £418 a month.

Sarah MacAndrew, from Fulham, South-West London, found that overseas language students paying £120 a week make the perfect replacement while her daughter is away at university. And she can earn more if she provides an evening meal.

'Not only are they here for just one to three months, but they are vetted by the language schools, so I have peace of mind,' says MacAndrew. Her top tip is to establish ground rules for tenants. 'You need to stipulate bathroom usage as well as if and when they can use the kitchen or living room,' she says. 'I don't enforce a curfew, though some people do. The students like to practise their English, so are keen to talk over meals. I've had a mix from the Middle East, France and Japan. Italians are always jolly and easy guests.'

HOUSE RULES

You can earn up to £4,250 a year tax-free in the government Rent a Room scheme.

Don't just sell the room, promote the house (eg, does it have broadband?) and the area.

Interview potential lodgers.

Discuss ground rules at an early stage to test compatibility.

Clarify how much of the property they can use.

Does the rent include meals with the family? Consider a kitchen rota if not.

If they have a partner, can they stay over; and how often?

What chores, if any, do you expect to be done?

Draw up a legal agreement - these can be found online.

The average rented room in Oxford and Cambridge costs £97 a week.You do need to be of a sociable disposition to take in lodgers and be flexible about sharing your living space, A double en-suite with a small living room costs from £50 a night with breakfast.
The average age of our lodgers is 34 and many are middle-income earners. They don't like slumming it in a hostel or cheap hotel room; they're after a room in a nice home.

Apart from terms and conditions (it is advisable to draw up a lodger agreement), consider the tax implications. Under the Government's Rent a Room scheme, you can earn up to £4,250 a year tax-free. The room must be furnished and you might want to get gas appliances safety-checked.If you are a leasehold owner, a tenant yourself or live in a local authority property, make sure you are allowed to take in a lodger. You will need to notify your home insurers and, if you live alone, you will lose your council tax single person's discount.

 

What does your property lawyer do?

Conveyancing literally means transfering a property title from one person to another. In essence it is the legal process of buying and selling property. Who does the conveyancing? Property conveyancing by law must be done by a property solicitor or licensed Conveyancer. One lawyer cannot act for both parties, as this would cause a conflict of interest so therefore both the buyer and seller will have their own representation.

 

What is the distinction between a Licensed Conveyancer and a Solicitor?

 

Solicitors are regulated by the Law Society and normally practice all areas of law, including conveyancing.

Licensed Conveyancers are regulated by the Council for Licensed Conveyancers and specialise only in conveyancing. Most Licensed Conveyancers are Solicitors who have converted to Licensed Conveyancer status. The processes and consumer protection standards are the same for either type of firm.

 

 What do they actually do?

 

Basically the Conveyancer is purely acting in your best interest in the property sale or purchase. They make sure that all the terms and conditions of the sale contract are reasonable and that the financial information is all as it should be. The process for what they actually do differs as to whether they are acting for the buyer or the seller

 

What is the process?

 

The seller's Conveyancer will first request a copy of the land registry entry for the property being sold. These are called office copies. A contract will then be prepared for the sale by your solicitor, incorporating the land registry plan and details, before forwarding it to the buyer’s solicitor. The buyer’s solicitor will send for the searches from a range of bodies, one being the local authority, and will assess the contract for sale which has been received from the seller's lawyer.

 

Additionally, if the buyer is borrowing money on a mortgage then the solicitor will need to receive a copy of the formal mortgage offer and be satisfied that the buyer has sufficient funds available to complete the transaction. If there are items in the contract for sale that the buyers solicitor is not happy with, then they will raise a query with the other seller's solicitor.

 

Once all of the queries have been resolved, the searches have been received, and proof of funds achieved, then both parties will be in a position to exchange contracts. Exchange of contracts is the point of no return for both parties and is a legally binding agreement for that Seller to sell and the Buyer to buy the property. At any time up to this point, either party can withdraw from the process without any penalty other than any monies they have spent on surveys, mortgage application fees etc. At exchange of contracts a completion date is normally agreed when the transfer will be finalised. On the day of completion the monies are transferred between the parties and ultimately, the keys are handed over.

What does your property lawyer do?

Conveyancing literally means transfering a property title from one person to another. In essence it is the legal process of buying and selling property. Who does the conveyancing? Property conveyancing by law must be done by a property solicitor or licensed Conveyancer. One lawyer cannot act for both parties, as this would cause a conflict of interest so therefore both the buyer and seller will have their own representation.

 

What is the distinction between a Licensed Conveyancer and a Solicitor?

 

Solicitors are regulated by the Law Society and normally practice all areas of law, including conveyancing.

Licensed Conveyancers are regulated by the Council for Licensed Conveyancers and specialise only in conveyancing. Most Licensed Conveyancers are Solicitors who have converted to Licensed Conveyancer status. The processes and consumer protection standards are the same for either type of firm.

 

 What do they actually do?

 

Basically the Conveyancer is purely acting in your best interest in the property sale or purchase. They make sure that all the terms and conditions of the sale contract are reasonable and that the financial information is all as it should be. The process for what they actually do differs as to whether they are acting for the buyer or the seller

 

What is the process?

 

The seller's Conveyancer will first request a copy of the land registry entry for the property being sold. These are called office copies. A contract will then be prepared for the sale by your solicitor, incorporating the land registry plan and details, before forwarding it to the buyer’s solicitor. The buyer’s solicitor will send for the searches from a range of bodies, one being the local authority, and will assess the contract for sale which has been received from the seller's lawyer.

 

Additionally, if the buyer is borrowing money on a mortgage then the solicitor will need to receive a copy of the formal mortgage offer and be satisfied that the buyer has sufficient funds available to complete the transaction. If there are items in the contract for sale that the buyers solicitor is not happy with, then they will raise a query with the other seller's solicitor.

 

Once all of the queries have been resolved, the searches have been received, and proof of funds achieved, then both parties will be in a position to exchange contracts. Exchange of contracts is the point of no return for both parties and is a legally binding agreement for that Seller to sell and the Buyer to buy the property. At any time up to this point, either party can withdraw from the process without any penalty other than any monies they have spent on surveys, mortgage application fees etc. At exchange of contracts a completion date is normally agreed when the transfer will be finalised. On the day of completion the monies are transferred between the parties and ultimately, the keys are handed over.

Auction and the buying process

Auctions are fast becoming a popular way of selling and buying residential property due to their ease and speed.

When the hammer falls it is equal to an exchange of contract, so the purchaser cannot be gazumped and there can be no last minute price battles.

 

The auction process

It is a whole different ball game selling via an action as apposed to sale by private treaty. The instant the property is ‘knocked down’ to a bidder, contracts are exchanged.

So it is vital that all the ‘homework’ is done before the auction, such as all preliminary legal enquiries, surveys and the arrangement of funding.

Sales particulars are distributed a few weeks prior to the auction date. The brochure contains full details of the property, these include  :

Photographs,

facts about tenure,

possession,

fixtures and fittings

rateable value, etc the conditions of sale a Memorandum of Agreement

details of viewing arrangements.

 

Before the auction

1. Study the property particulars in great detail; there may be unacceptable conditions or disclaimers. Look for references to planning restrictions or refusals, and ensure these would not prejudice any alterations or improvements you would want to make.

2. Go and see the property.

3. Research the neighbourhood, Talk to neighbours and estate agents if you can.

4. Send the property details to your solicitor or licensed conveyancer, and arrange for him to carry out the necessary enquiries and searches.

5. Arrange a survey and a valuation.

6. Set your budget, and arrange the necessary finance. You'll need to be able to produce a deposit of 10 per cent (or the amount stipulated in the conditions of sale) on auction day, and the remaining 90 per cent within 28 days thereafter. A lender will insist on inspecting and valuing the property in the usual way before agreeing a mortgage, so allow time for this.

If you would want to make improvements to the property, obtain estimates at this stage, so that you can include the costs in your calculations.

7. Attend an auction if you haven't done so before, to familiarise yourself with the procedures.

You are now ready to bid ...

 

During the auction

Have with you two forms of identification, your chequebook and your bank details.

Don't exceed your price limit.

Bid clearly, by nodding (or shaking) your head, or raising your hand

As bidding continues, the auctioneer will indicate what further increments he will accept. He may refuse a bid, and is not obliged to explain why. In any dispute, his decision is final.

In the majority of cases, the property will be sold subject to a reserve price. This figure is not usually disclosed, but the guide price should give an indication. If the bidding does not reach the reserve, the auctioneer will withdraw the property.

 

After the auction

If you are outbid, you lose not only the property but also the money you have spent on the survey, legal fees, and so on, just as you do when exchange of contracts fails to take place in a transaction by private treaty.

If the property for which you were bidding is withdrawn, it is worth informing the agent of the figure at which you are prepared to buy; the vendor may be willing to consider your offer.

If your bid is successful, you must pay the deposit to the auctioneer there and then. As confirmation of the sale and acknowledgement of receipt of the deposit, the vendor's agent will countersign the Memorandum of Agreement.

The remainder of the transaction follows the same pattern as a sale by private treaty. Completion generally takes place 28 days after the auction, with the balance of the purchase price being paid at that point. Penalties for failure to complete are severe.

Always seek professional advice before deciding to bid at auction, and remember that, once the hammer falls, you are legally obliged to go through with the purchase, at the price you have agreed.

 

Plans Pulled for New Homebuilding Target

 According to Channel Four, they have seen figures showing that councils have pulled plans for around 100,000 new homes since the coalition government wrote to councils in July telling them to ignore previous government homebuilding target. The Communities Secretary Eric Pickles axed regional strategies put in place by the Labour government that aimed to build three million new homes in England by 2020.Councils were instead told to draw up their own proposals for agreeing planning applications. The government also scrapped the independent housing affordability watchdog, the National Housing and Planning Advice Unit (NHPAU).

Before its demise, the NHPAU had calculated that England needed to build 240,000 houses a year to meet demand. However due to the recession, just 123,000 were constructed last year.

In an exclusive interview, Peter Williams, the NHPAU's chairman until July told Channel 4 News that he believed fewer homes will be built in the future.

"The likelihood is that we will see fewer homes being built and affordability pressures get worse," he said. 

"The prospects for first time buyers look extremely difficult and not likely to get any better in the near future. Only better off first time buyers will get access to the market".

Dr Williams referred as "high risk" the current government's strategy of offering a New Home Bonus, a six year council tax incentive to councils.

In a letter to housing minister Grant Shapps before the NHPAU was disbanded, Dr Williams warned that the UK faced an "increasingly severe social and economic consequences and house prices will become less and less affordable with more dangerous booms and busts".

The NHPAU suggested a house building target of over 300,000 per year was required: "getting back to the level of house building we saw before the recession is nowhere near enough. We need to deliver half as many again extra homes".

Mr Pickles axed the NHPAU before it began the annual formal process of assessing England's housing need. He had suggested that such targets were 'soviet'.

However a study carried out for the National Housing Federation by Tetlow King suggested that councils had now pulled plans for 100,000 homes.

But Housing Minister Grant Shapps argued that the Labour's government approach using centrally set targets had not worked.

In a statement to Channel 4 News, he said: "Central housebuilding targets and regional spatial strategies don't build homes. Under the previous Government the number of new homes being started slumped to the lowest levels since 1924.

"Top-down targets and bloated bureaucracy haven't worked.

"Reviving a housebuilding market on its knees takes much more than pieces of paper from central government telling town halls what and when to build.

"That's why we've pledged to give councils substantial extra funding if they build new homes through our New Homes Bonus. This will mean that they get significant financial benefits from building the homes their communities really need.

"We're also giving struggling rural villages the chance to secure their long-term future and build new homes that locals can actually afford to live in through Community Right to build scheme. And, despite tough economic times, we've managed to safeguard funding for thousands of new and affordable homes, which the last government had left unfunded."

 

 

Attempted mortgage fraud up 37% in 2010

There were 37% more attempted mortgage frauds in the first half of 2010 than in the second half of 2009, according to Experian’s latest Fraud Index.The majority of cases involved applicants misrepresenting their situations or attempting to hide adverse credit histories in their applications.

The percentage of mortgage fraud also continues to steadily increase, despite dipping slightly in Q3 and Q4 2009. Some 35 out of every 10,000 applications received were identified as fraudulent, more than double the 16 in every 10,000 during Q2 2007, when the economy was more buoyant.Experian however saw automotive fraud rise by 35% in the first half of 2010, overtaking attempted mortgage fraud in the second quarter to reach its highest level since early 2006.

According to Experian’s latest Fraud Index, which highlights the evolving nature of fraud threatening the UK’s financial services sector, 19 in every 10,000 applications received by financial institutions in the first half of the year were identified as fraudulent –33% more than the second half of 2009.First party fraud overtook third party identity fraud during April to June as the most common form of attempted fraud.

First party fraud typically involves individuals attempting to hide adverse credit histories or misrepresenting their employment status to try and secure credit and other financial services which might not have been suitable for them.Nick Mothershaw, director of fraud and identity solutions at Experian, says: "Our analysis shows that the increase in attempted mortgage and current account fraud underlines that providers need to invest to manage the risk of fraud and its potential impact on profitability."

 

Is The House Dip Healthy?

I am terrified to pick up the paper or switch on the news, are we facing housing market Armageddon????

According to Nationwide, the market has stalled, house prices falling 0.9% in August, but are still £3,000 up on the start of the year.

Are we all over reacting, prices rose at a heart fluttering pace only to come back down again, perhaps this is all just a healthy correction.

Nationwide said the average home is now worth £166,507 and the property market appeared to have stagnated following the past year's surprise rally in house prices.

Annual property inflation has slipped back to 3.9%, after hitting a recent peak of 10.5% in April, while over three months house prices are flat.

The building society said that while the market was easing, house prices were unlikely to fall rapidly as they did in 2008, with the evidence instead pointing to a period of stagnation which would improve affordability.

Recent market trends remain consistent with an unwinding of the supply-demand imbalance that drove up prices for much of the last year.

As more sellers have returned to the market, buyers have a greater selection of properties to choose from and more bargaining power with which to bid down asking prices.

There is little evidence of distressed selling, however, with the Council of Mortgage Lenders' second quarter figures showing another drop in mortgage arrears and possessions.

At present the trend for price decline is likely to remain modest.

A run of downbeat news emerging from the property market has led to renewed forecasts from some economists that prices will fall once more.

Howard Archer, chief UK economist at analysts IHS Global Insight suggests prices will be 10% lower than their mid 2010 levels by the end of 2011. His forecast was echoed this week by Andrew Goodwin, senior economic advisor to the influential Ernst & Young ITEM Club, who said annual price falls of between 3% and 5% will be seen over the next 12 months, before house price stabilise.

However, economists and property watchers agree that the effects of a slowdown will be felt differently across the UK. The threat of spending cuts and public sector cutbacks is more likely to affect areas outside London and the South East and hit them harder.

Meanwhile, in the more buoyant capital and commuter areas, good properties in desirable locations are likely to prove most resilient.

Last year, there was a major disconnect between the property market and the economy. House prices rose at a rate that was simply unsustainable and a degree of correction was always on the cards.

 

Is The House Dip Healthy?

I am terrified to pick up the paper or switch on the news, are we facing housing market Armageddon????

According to Nationwide, the market has stalled, house prices falling 0.9% in August, but are still £3,000 up on the start of the year.

Are we all over reacting, prices rose at a heart fluttering pace only to come back down again, perhaps this is all just a healthy correction.

Nationwide said the average home is now worth £166,507 and the property market appeared to have stagnated following the past year's surprise rally in house prices.

Annual property inflation has slipped back to 3.9%, after hitting a recent peak of 10.5% in April, while over three months house prices are flat.

The building society said that while the market was easing, house prices were unlikely to fall rapidly as they did in 2008, with the evidence instead pointing to a period of stagnation which would improve affordability.

Recent market trends remain consistent with an unwinding of the supply-demand imbalance that drove up prices for much of the last year.

As more sellers have returned to the market, buyers have a greater selection of properties to choose from and more bargaining power with which to bid down asking prices.

There is little evidence of distressed selling, however, with the Council of Mortgage Lenders' second quarter figures showing another drop in mortgage arrears and possessions.

At present the trend for price decline is likely to remain modest.

A run of downbeat news emerging from the property market has led to renewed forecasts from some economists that prices will fall once more.

Howard Archer, chief UK economist at analysts IHS Global Insight suggests prices will be 10% lower than their mid 2010 levels by the end of 2011. His forecast was echoed this week by Andrew Goodwin, senior economic advisor to the influential Ernst & Young ITEM Club, who said annual price falls of between 3% and 5% will be seen over the next 12 months, before house price stabilise.

However, economists and property watchers agree that the effects of a slowdown will be felt differently across the UK. The threat of spending cuts and public sector cutbacks is more likely to affect areas outside London and the South East and hit them harder.

Meanwhile, in the more buoyant capital and commuter areas, good properties in desirable locations are likely to prove most resilient.

Last year, there was a major disconnect between the property market and the economy. House prices rose at a rate that was simply unsustainable and a degree of correction was always on the cards.

 

Is The House Dip Healthy?

I am terrified to pick up the paper or switch on the news, are we facing housing market Armageddon????

According to Nationwide, the market has stalled.House prices falling 0.9% in August, but are still £3,000 up on the start of the year.

Are we all over reacting, prices rose at a heart fluttering pace only to come back down again, perhaps this is all just a healthy correction.

Nationwide said the average home is now worth £166,507 and the property market appeared to have stagnated following the past year's surprise rally in house prices.

Annual property inflation has slipped back to 3.9%, after hitting a recent peak of 10.5% in April, while over three months house prices are flat.

The building society said that while the market was easing, house prices were unlikely to fall rapidly as they did in 2008, with the evidence instead pointing to a period of stagnation which would improve affordability.

Recent market trends remain consistent with an unwinding of the supply-demand imbalance that drove up prices for much of the last year.

As more sellers have returned to the market, buyers have a greater selection of properties to choose from and more bargaining power with which to bid down asking prices.

There is little evidence of distressed selling, however, with the Council of Mortgage Lenders' second quarter figures showing another drop in mortgage arrears and possessions.

At present the trend for price decline is likely to remain modest.

A run of downbeat news emerging from the property market has led to renewed forecasts from some economists that prices will fall once more.

Howard Archer, chief UK economist at analysts IHS Global Insight suggests prices will be 10% lower than their mid 2010 levels by the end of 2011. His forecast was echoed this week by Andrew Goodwin, senior economic advisor to the influential Ernst & Young ITEM Club, who said annual price falls of between 3% and 5% will be seen over the next 12 months, before house price stabilise.

However, economists and property watchers agree that the effects of a slowdown will be felt differently across the UK. The threat of spending cuts and public sector cutbacks is more likely to affect areas outside London and the South East and hit them harder.

Meanwhile, in the more buoyant capital and commuter areas, good properties in desirable locations are likely to prove most resilient.

Last year, there was a major disconnect between the property market and the economy. House prices rose at a rate that was simply unsustainable and a degree of correction was always on the cards.