Northfields

Selling House in West London: Now is the Time

Many people dream of leaving the big smoke of London and starting a quieter life in the country.  If that has always been part of your plan, now may be the time to make the big move.  "Property prices in the capital are recovering well ahead of those in the rest of the nation", reports the Times Online, "which gives you a chance to swap your semi in the metropolis for something detached with an acre or two, or a handsome house in a smart town where the schools are good, before the gap narrows and the pick-up eventually spreads."

This pattern in the property market has been seen before.  Between 1995 and 2000, the prices of London properties increased and then property prices elsewhere rose from 2000 to 2005; so the ideal time to cash in on a property in the nation's capital was 1999.

We are now entering a market which is mirroring the late 1990s.  London is recovering faster than other areas of the UK meaning that the price differential is quite significant.  In pounds and pence that means that the London homeowner of 2005 could have expected an average saving of 43% by buying a similar property out of the capital.  Compare that to today's differential where the saving could be 50%.

With the base rate remaining as low as it can go, mortgages for those with equity are cheap, increasing the amount available for movers to secure the house of the their dreams. So where should you head to make the most of the price differential?

The biggest gains are for those who are heading north, where, according to the latest research from the Royal Institution of Chartered Surveyors, most agents report that prices are still falling.

Even if you plan on staying in the relatively high-priced southeast, the homeowner planning to sell up in London stands to benefit from the gap between London prices and the prices of homes within a commutable distance.

Another factor on the home sellers side is the lack of stock that is coming to the market which creates added competition amongst buyers.

Families looking to move will want to consider putting their houses on the market right away if they aim to exchange and complete in July so they are settled in well before the new school term starts.

Luckily, Ealing and Shepherd's Bush are popular areas commanding prices that reflect the demand, but those with homes in less fashion­able areas of the capital should be careful not to set their hearts on the prettiest commuter hot spots if they’re determined to get more house for their cash. Areas like Buckinghamshire which are within commutable distance of London, will have price tags that rival or even outstrip some less desirable areas of London.

Northfields advice for people moving out of London for pastures greener is to move fast while the price differential is on your side.  If you start this process while the temperatures are still cold with a threat of snow in the air you will beat your competition to the pick of the crop before spring brings out the rest of the house hunters.

Northfields can take care of your entire relocation, from selling your home in West London to finding a new home outside the London area.  As part of the Home Sale Network, we are one of around 750 independent agents nationwide, each chosen for local knowledge, high quality customer service and excellent results. Ask us and we will connect you with the best independent agent in your chosen area.  Call us now on 0208 840 6666 or register online here.

What to Choose: Modern and Cheap to Heat or Period and Chilly?

Most people who register with Northfields know exactly what they are looking for in property and a great number of buyers and tenants love period properties and have "period features" on their wish lists.  However, there is a growing trend toward eco-awareness and sense of the growing cost of utilities.  Does this mean that we'll see a shift away from buyers and tenants searching for drafty Victorian terrace homes and stately Edwardian conversions?

A new study by the Energy Saving Trust shows that, even in an average year, a family in a three-bedroom Victorian semi will pay £250 more in energy bills than a family in a three-bedroom new-build semi. Added to that, Energyhelpline, the price comparison service predicts that British families will pay £1.9 billion in extra heating charges as a result of this winter's unusually cold weather - it is clear that the gap between old and new home utility bills will widen even further as the latest bills land through our letterboxes.

While it is true that it is possible to update a period home so that they meet 21st century expectations, doing it properly can be costly, sometimes equally the entire worth of the house.

So is it better then to turn our back on the appeal of the older home?  An article in the Times Online recently quoted Ian Dungavell, director of the Victorian Society as saying, “It will take more than snow and ice to put us off Victorian houses.  What’s important is to consider how these houses were lived in and learn from it."

“In recent years there has been a vogue for knocking down walls to create an open-plan space. But of course, they weren’t designed for this,” he says. “Originally you had smallish rooms with a single radiant heat source — and a door. If you wanted to keep a room warm, you closed the door. The idea that it’s desirable to heat a whole house to a uniform temperature is a very modern one.”

Even with smaller spaces being draped heavily to conserve heat and people wearing many layers of heavy clothing, life in a Victorian home would seem harsh to most modern homeowners and tenants.  Although there were fireplaces in most bedrooms, the fires would only be lit if the inhabitant was ill.  The fact was that life as a Victorian was quite cold.

Will the current cold-weather inspire house-hunters to turn away from period homes and look for new-build properties instead? According to the May 2009 YouGov survey carried out for the New Homes Marketing Board many prospective buyers rated eco-efficiency as their third biggest concern, only surmounted by having a garden and ironically a place to park their car.

Even at the high end of the market, where money for heating may be less of a concern, many buyers are looking for new apartments with all the gadgets rather than the charm of crown mouldings and creaky floorboards.

Whether you prefer the eco-friendly life with the convenience of a newly built home such as this property for sale in Lovelace House, in Ealing:

Two bedroom apartment for sale at £269,950 Click here for more information on this property.

Or if you still prefer the charm and grace of older properties such as this two bedroom Victorian conversion flat in Shaa Road, Acton, Northfields can help.

Two bedroom conversion flat for sale £284,950 Click here for more information on this property.

Old or new, Northfields can help you find the property you are looking for.  Call us on 0208 840 6666 now or register online by clicking here.

Protect your Property from Fraudsters

If you own property with no mortgage or you are buy-to-let landlord or do not live in a property you own, you need to read this!

Land Registry''s ''Protect your Property campaign'' was launched in early Jan 2010 as a means of protecting property owners from fraud.  It is the Land Registry's function to register titles to land in England and Wales and to record dealings with land (sales and mortgages).  However, the Land Registry has been used by many fraudsters to steal property.

One would think that stealing a property wouldn't be easy, but this BBC News report from March 2009 explains how it is possible:

The Land Registry advises that your home may be at greatest risk if you are in one of the following groups:

- a homeowner with no mortgage

- a homeowner who does not live in the home, such as a buy-to-let landlord

The Land Registry has responded to the issue by distributing a 'Protect your Property' leaflet to homeowners at advice centres, law centres, solicitors' offices, elderly concerned organisations and public libraries. The leaflets provide information about how people in these vulnerable groups can protect their property. In addition to information leaflets, online content is available.  In fact, you can register your details online with the Land Registry by clicking here.

The Land Registry states:

Property is usually a homeowner's most valuable asset and it can be an attractive target for fraudsters. This campaign provides homeowners with information to help them protect their ownership. If you are mortgage free, no longer live at your property or are a buy-to-let landlord, one of the jobs on your New Year 'to-do' list should be to make sure that Land Registry has your up-to-date contact details. This means we can contact you when someone makes an enquiry about your property.

Land Registry spokesperson 

With Parliament still yet to finalise the closing of a potentially serious loophole, Northfields encourages property owners to take responsibility for protecting their biggest asset - their home. 

If you are concerned about protecting your home from fraudsters, seek advice from Northfields, we will be happy to advise you, call 0208 840 6666.

Has the Cold Weather Cooled Down the Market?

The Times Online recently posed the question: "is it the beginning of a new slowdown in prices, or just seasonal?"

The Christmas holiday period is usually a time when estate agency cools down.  Most people are too busy with Christmas festivities to be viewing property (mind you, this is precisely why Northfields Managing Director, Richard Palfreeman always buys properties during this time).  However, after the New Year many estate agents gear up for increased activity with many people having waited until after the holidays to list their properties for sale or rent.  

Jeremy Leaf, of Rics (The Royal Institute of Chartered Surveyors), comments on this seasonal trend. “The recent loss of momentum in prices can in part be attributed to the housing market pulling down its shutters for Christmas,” he said. “It is likely that the new year will see more interest and activity in the market, as those who held back start to market their property with renewed optimism.”

Given the poor weather at the beginning of January the market did not pick up as quickly during the post-holiday period as estate agents have come to expect.  With many people struggling to make it out of their own homes, a  busy schedule of viewing other people's homes was rather difficult.  However, Northfields rather bucked this trend with all of our staff skating into work for normal working hours and being kept very busy.   

A recent survey released by The Royal Institution of Chartered Surveyors (Rics) shows a minor slowdown in the market which Rics thinks can be explained by seasonal factors.  The proportion of surveyors reporting a rise in house prices minus those reporting falls slipped to 30% last month, from 35% in November, with London being one of the strongest markets.

Interestingly, the Times suggests that due to the bad weather that "much of the month will be a write-off".  However, one factor not mentioned by the Times is the much higher internet traffic that was recorded during the cold snap.  The BBC reported how the snowed-in population had turned to the virtual world while confined to their homes and certainly the post-holiday period does tend to be one of the busiest periods for property websites.  With every estate agent worth their salt listing their properties on the internet, many potential buyers or tenants, occupied their time during the cold snap looking for a new home for the new year on the internet.   The recent thaw will mean that they can now see the homes that they picked out on the web in real life.  This pent-up demand may well give the market a boost in momentum, a trend that Northfields certainly seems to be experiencing.

Certainly the figures from the Department for Communities and Local Government suggest that house prices were heating up into the worst of the winter, jumping by 1.7% in November and rising by 0.6% over 12 months, the first such increase since mid-2008.

Added to that the continuing fall in borrowing costs means people moving house needed 10.6% of gross income to cover their mortgage interest payments in November, the lowest since mid-1996, the Council of Mortgage Lenders says. The debt burden on first-time buyers has also shrunk to its smallest since May 2004.

Have you spent the cold snap looking at properties on the internet?  Call us now on 0208 840 6666 to book your viewings.  Or click here to register online.

When Will Interest Rates Rise?

The Bank of England announced last week that interest rates will remain unchanged at 0.5%.

The cost of borrowing has been at a record low since March 2009 and economists do not expect the central bank to raise rates in the near term.  Although the UK is thought to have exited recession in the last quarter of 2009 the MPC said it expected its Quantitative Easing programme to take another month to complete and that the scale of the programme would be kept under review.

"The recovery is now underway, but its strength remains in doubt," said Lee Hopley, chief economist of the manufacturers' organisation, the EEF.

"There are a number of potential pitfalls even as the UK economy starts growing again, including cautious consumers, questions over the public finances and a still-fragile banking system."

So when will the interest go back up?

If you’re the betting kind, you’ll be interested to know that bookies Paddy Power have March as the odds-on favourite at 4/5. It’s 10/1 for the interest rate freeze to continue until July or later.
Paddy Power has also released odds on UK house prices, suggesting that a decline of between 4% and 6% is the most likely outcome for 2010, at 5/2.

There isn't a great deal of science in these odds – but then economists are also forced to used educated guess work to conjure up their forecasts as well.
 
When do you think the UK interest rates will rise?

So what does that mean to you if interest rates rise?

Savings:

Savings rates initially fell along with the Bank of England base rate.

Towards the middle of 2009, though, lenders including several building societies, increased their savings rates in order to attract more savers. This was designed to increase the money they had on deposit, so that they could ultimately do more lending to fund mortgages and businesses. Lending money out brings in revenue for banks

However, for the most part, savings rates – particularly for ISAs – are still low. Therefore anyone with savings should discuss their full financial situation with an independent adviser, to make the best of the returns available without taking on unnecessary risk.

Mortgages:

If the base rate rises, anyone on a variable rate mortgage, such as a tracker or their lender's standard variable rate (SVR), will find their monthly repayments will go up.

It is possible that when interest rates start to rise, it could push more people in arrears in their mortgages, if they find they are unable to meet their monthly mortgage repayments.

For mortgage holders who feel that rising rates are their biggest concern, one option is to switch to a fixed-rate mortgage – which will give them certainty about their mortgage payments for a given term.

However, banks are putting a high premium on fixed-rate mortgages - they are historically expensive. So borrowers will have to think this decision through very carefully and preferably with the help of an independent mortgage adviser.  Even if you already have a mortgage broker or bank that you are happy with, it makes the most financial sense to get several opinions and quotes.  Most people will get many different quotes when pricing up their car insurance, so why not do the same thing when making a huge financial commitment such as getting a mortgage. 

Contact us on 0208 840 6666 or at sales@northfields.co.uk and we'll put you in touch with The Mortgage Advice Bureau who will be able to provide you with the advice you need, so that you are sure that you are getting the best deal possible.

2010: The Year of the Landlord

Those people who have been searching for property in recent months or who keep an eye on the market will know that activity has picked up in recent months.  In the UK house prices were 1.1% higher in December than a year earlier - the first annual rise since March 2008, according to the Halifax.  December's rise in prices marks the sixth consecutive monthly rise in prices for the housing market.

According to The Halifax, the average home was now worth £169,042. While Nationwide published an average house price of £162,103, up by 5.9% in 2009.

However, the group predicts that property values will be flat in 2010 owing to the economic outlook.  Interestingly, Rightmove, one of the largest property portals in the UK  predicts a burst of activity and asking price gains again in early spring 2010 that will actually prolong the heightened level of activity seen during 2009. However, Rightmove adds that following the upcoming general election the housing market will enter a more challenging period.

Miles Shipside, commercial director of Rightmove comments: “Those contemplating selling should spend some of the festive break researching their local market before seeking professional opinion very soon after the New Year. Time may well be of the essence as the election is likely to be a party pooper. 2009 turned out to be a good time to trade up, and we forecast the positive mood will continue into 2010 until the post-election hang-over kicks in”.

Looking back on 2009, prices have risen steadily in recent months, having bounced back by 9.4% from the low point of April 2009. The buoyed up prices that we have experienced recently were fuelled in part, by a shortage in the number of homes being listed for sale. If potential sellers decided to put their homes on the market this would flatten any future pick-up.

"The prospects for the market this year will depend on how the UK economy evolves and whether there is a significant increase in the supply of properties for sale," said Halifax housing economist Martin Ellis.

Rightmove goes on to predict that 2010 will be the "year of the landlord".  With more first time buyers unable to secure finance, many will continue to look to the rental sector for their housing needs.  Rightmove has noted a 15% fall in the number of properties advertised for rent on their website in the last 6 months with many of their lettings agents reporting a lack of new landlord instructions, mirroring the shortage of sellers.

In addition to the increased demand from tenants who find themselves unable to buy property, Rightmove believes that "Existing landlords will find themselves in an increasingly privileged position in 2010, where competition from new landlords is frozen out by a dearth of buy-to-let mortgages".

For those landlords with access to finance 2010 will be a great year.  2009 saw the rental market flooded by "accidental landlords" who were having no success selling and so offered their property for let instead, but most of these properties have now been sold, giving professional landlords the chance for a competition-free field.

If you have a property you would like to offer for let call our award winning lettings team on 0208 567 6660 or click hereto request your free valuation online.

If you are looking to buy or sell to take advantage of the predicted burst of activity in the early spring this year, call our award winning sales team on 0208 840 6666 or click hereto register online.

 

Ask the Agent: What is a Local Authority Search

"Local authority search" is one of those terms you may hear an estate agent or conveyancing solicitor bandy about, but what does it mean?  A local authority search is part of the conveyancing process that will be carried out by your solicitor when you buy a property.  The search provides details about the property that the local council feels is relevant, such as road improvements or any planning permissions given for the property.  The purpose of the search is to protect you from any unpleasant surprises by checking up on any plans that may affect the home you're buying, for example, that you're not going to have an all night delivery super-depot built next door etc. It also checks on any possible property developments which may affect you, as well as changes to land use or public rights of way.

The search will also throw up any planning restrictions on the property such as your home being put into a new conservation area.

How long the searches take is entirely dependent on the Local Authority in question.  Some councils may take a couple of days and others can take weeks, but the average is about two weeks.

Be aware that the search will be out of date relatively soon. If the house buying process takes a few months there may have been new planning proposals made in the interim. If so you should consider doing a new search.

You may also want an additional environmental search carried out particularly in the light of the recent nationwide flooding problems.

Need help find a reliable conveyancing solicitor?  Northfields can recommend conveyancers who work on a no sale, no fee basis.  Call us now on 0208 840 6666 for a referral.

How do you pick an estate agent?

Whether you are looking for property to buy, sell, rent or let what is the primary way that you choose an agent? 

Northfields would like to be your agent click here to see why we should be your choice.

Looking to buy or sell property in West London? Call us on 0208 840 6666.

Looking to rent or let property in West London?  Call us on 0208 567 6660. 

How to Buy a Repossessed Property - Auction or Agent?

If your only experience of buying investment property is watching Homes Under the Hammer you might be forgiven for thinking that a property auction is the only way to buy property, espcially repossessed property.  However, Letting Focus, a blog dedicated to the rental market, points out "the vast majority of repossessed properties go through an estate agent first. Indeed, they only go on to auction if they fail to sell via an agent."

As David Lawrenson, the author of Lettings Focus points out, auctions may be OK if you are willing to spend time and money fixing up a real wreck of property and have the cash to finance both the renovation and the property purchase.  However, it is a lot easier and less of risk for those investors who need mortgage financing to buy one through an estate agent who handles repossessions, like Northfields (not all agents do handle repossessions, it is worth pointing out). 

The risks of property auctions include being outbid and then consequently losing the money you spent on your survey valuation fee and the legal costs.

Mr Lawrenson also points out that "Repossessions Lists" are a myth where membership is offered at a fee like a club, to get "first dibs" on repossession properties.  Your best bet is to register with an estate agent who handles repossessions, letting them know that you are particularly interested in this specific type of property. 

Northfields handles repossessions regularly.  Register with Northfields to get notified about our new instructions, click here to register online or call us on 0208 840 6666.

What's in Store for Landlords?

The economic slowdown of the past two years has separated the casual landlords from the professionals, particularly those who decided to dabble in property investment expecting quick returns.  Those landlords who took a longer term view have not only survived the downturn, but are now cautiously optimistic as they look to the future.

Recently, the rental market has seen rents improving.  Tenant demand has also gone up with both first time buyers unable to secure finance and home owners who've sold but can't buy due to the lack of available sales stock both turning to tenancy as their answer.  Added to that, firms from the City are starting to hire from Europe and the US again, creating more demand for corporate tenancies in London in particular.

The buy-to-let mortgage market is also seeing modest improvements.  Certainly the  buy-to-let mortgage market has a long way to go to full recovery, but with the long term rentals market looking up and interest rates remaining low, investors with deposits in the bank can look forward to a period of hunting up bargain properties with which to pad their portfolios.

“There has never been a better time to capitalise on the buy-to-let market,”  Jim Parker, a landlord of 15 years and spokesman for the National Landlords’ Association (NLA) in Scotland was quoted as saying in the Times Online. “There is virtually no return from the banks, but there are some great bargains out there. Housing is in short supply and rents are increasing. If you have the deposit to put down, now is the time to buy.”

Parker has bought three houses in the past six months to add to his portfolio of 37 properties in Fife. It was his first shopping spree in four years. “We stopped buying when prices started rising rapidly. It made no financial sense to buy at the height of the boom.”

Reports from the Royal Institution of Chartered Surveyors (RICS) and the Association of Residential Letting Agents (ARLA) also support the theory that buy-to-let investors are seeing positive returns on the horizon.   For the first time since the credit crunch began, according to the reporting of the Times Online "those who bought in April 2009, at the bottom of the market, have reaped a return of 7.4 per cent in rent and rising prices, the equivalent to an annual return of more than 15 per cent. Even those who called the market too early and bought a year ago, have made a return of 2.4 per cent".

One of the major reasons for the dip in the rentals market during the start of the credit crunch is now just a bad memory - the oversupply of rental property, caused largely by a flood of homes put up to let by owners who failed to sell, has vanished as the housing market picks up. With the so-called accidental landlords leaving the market the professionals can once again reap the benefits.

Taking a very long-term view, ARLA predicts that the demand for rental homes is set to grow by 20,000 to 30,000 a year over the next decade, largely because of the rise in divorce, immigration and job mobility.

What do you think the future holds for landlords?

Looking to expand your property portfolio?  Check out the properties Northfields has for sale here or call our award-winning sales team on 0208 840 6666 and register your details now so that you get notified about new instructions as soon as we get them.