New flooring can really make a difference

An area that people forget about can be the thing that really spruces up the house, the flooring. If you’re tired of the carpeted floors or due for new flooring as the carpet is worn away then why not consider hard-wearing solid wood flooring? Having solid wood flooring, particularly in the main room of the house means that you can worry less about stains from spilt drinks and food and dirt from muddy shoes. So instead of having to hoover up, clean and scrub the carpets with stain removing carpet cleaner, all it takes is a wipe. Before spending money on new wooden flooring, peel away your carpet and you may surprise yourself by finding a perfectly preserved wooden floor!

Why an extension should add more value than increase in price

One great way of sprucing the house up through development is to add extra space via an extension, a conversion or by knocking a wall down to create extra space. The belief is that it is cheaper to create space than to buy space so why not make the most of what we already have? Adding extra space can provide a much needed extra bedroom, a larger kitchen, a utility room or a personal home office. Not only would this extra space be beneficial for the house, but should really bring enjoyment to the family which is the real added value.

Create your house into something enjoyable, says Phil

There’s a multitude of ways to further increase the asking price of your house. Long gone are the days of ‘cleaning up the house’ before viewings. Phil Spencer from Channel 4 program Location, Location, Location says it’s now about creating your house into somewhere enjoyable by further enhancing it and not just simply chucking some money into the property and creating an addition for the sake of it. Another thing he points out is not to make any conversions right before selling; why not get it done earlier and enjoy the benefits of your creation than for the purpose of selling the property?

Thinking of adding a conversion?

If you have a garage that’s not in use at home, why not convert this to an extra room? Many people are converting their old, unused garages into additional living space whilst removing clutter and having a good spring clean. Not only is this a great way of making room but can also increase the price of your property in the long run. Some planning will have to be made however, as it’s not a simple, straightforward task as it sounds. Also, a lump sum investment is required before any return is made when selling the property. This would be an ideal project for newly retired couples, or people with spare cash lying around.

Garden as a way of expressing yourself

These days after chasing for fame (or infame in some cases), money and luxury, we have recently reached the stage where we need some comfort and peace of mind too. Here is where our creativity is starting to mess around. Your home is your keep, so radical disturbances are rather scarce and can lead to your loved ones becoming very frustrated. But what if you had a garden? A few square meters of green pitch that you could use, adapt and transform to your requirements? That would be really helpful!

Today you can be almost 100 per cent sure that your house will come with a back-garden. Even some apartments have a separate patches of green for their owners, so try and look for one, cause there is nothing better than an afternoon spend in your comfy chair with your favorite book, having a nice breeze on your face and your kids playing around in a pond. Just watch for the pond pumps and make sure you have a filtering system in place, so the water will be clear and nicely looking.

Garden equipment is something very vital to your leisure, so choose carefully. You can buy some cheap furnishings for less than a £100, including your barbecue grill, but to be honest they are not worth your time and money. It’s better to put some more cash upfront and enjoy a peace of mind with your family.

Spruce Up Your Home

If you are thinking of letting a property and planning on filling it with designer items and furniture, then now is the best time to buy. Due to the current recession, shops are putting on sales and offering items at bargain prices, just to make a sale and a little bit of money. A number of high street stores are offering items of furniture at almost half the original price.

A friend of mine bought a number of designer radiators the other week and managed to get them at a discounted price due to the store having a closing down sale. They look great and were a complete bargain!

Make sure that before you go shopping you take a look around the house to see what items you could do with being replaced. It may be useful to make a little list so you don’t forget. You may realise that the office chairs you have been using could really do with being thrown in the skip or the headboard on your bed needs updating. Now is the best time to take a trip to the shops to bag a bargain.

If you are planning on letting for the first time, then now is the time to invest in time such as washing machines and sofas for the future.

Housing slump likely to be over in 2009, says LSR

A forecast by the Lombard Street Research (LSR) says that the UK housing slump may be over by end of 2009.

LSR, regarded as one of the most reputed economic consultancies of London, claimed that home prices have now come to “affordable” levels.

LSR worked out an affordability index in co-ordination with The Daily Telegraph, which revealed that house prices throughout the UK are far better than their long-term average, for the first time in 5 years.

According to LSR’s senior economist, Jamie Dannhauser, house prices levels will bottom out at the end of 2009, and the recovery will be little extra than the bounce from bottom.

Dannhauser believes that current average prices are quite affordable for those with hefty deposits and good credit rating.

Property prices have gone down by around 20% since onset of credit crunch in last 18 months. There are many industry watchers who are forecasting further decline of 15% on account of rising unemployment.

But LSR believes that combination of low interest rates and falling prices means prevailing prices are good value for those having capacity to pay big deposit.

Earlier in April, Halifax reported 1.9% fall in the UK house prices in March, as compared to February. But just a day later Nationwide’s house price index showed 0.9% increase in March.

The Centre for Economics and Business Research (CERB) also hinted that housing market recovery may be around the corner.

Stewart Milne Homes’s sales showing positive increase

Good days seem to be here for the housebuilder Stewart Milne Homes. Renewed optimism seen in the Scottish housing market has helped the housebuilder in registering increase in sales on its quality homes, since beginning of 2009.

From January onwards, the premium housebuilder’s sales in Scottish portfolio have risen every month with increase of over 100% during February and March 2009.

The Stewart Mine Homes group offers different incentives to buyers in the form of tailor-made purchase plans which can help individuals with mortgages.

According to Group Managing Director – Homes, John Slater, increase in number of visitors and enquiry levels is indicator of renewed optimism. He claims that the group tailors purchase plans by working closely with customers which makes buying a Stewart Milne home an affordable proposition. He supports this claim by giving example of ABeleven development in Aberdeen where growth in sales has been double every month since beginning of 2009. He asserts that given the right homes and right location, consumers are ready to buy again.

Recent UK house price data indicates that Scotland is the only area which witnessed price rise during last one year.

However, more than 50% of aspiring home buyers believe that house prices will remain static or increase marginally, while 66% consider that now is the right time to purchase a home.

Government launches Homeowners’ Mortgage Support Scheme

The Homeowners’ Mortgage Support Scheme (HMSS) by the Government has been launched on 21 April. Details of scheme were announced last year.

It is aimed at helping homeowners who are losing part of their income and will allow postponement of up to 70% mortgage interest payments.

Housing Minister Margaret Beckett claimed that the Government is aiming to help people who are unable to pay their mortgages because of economic downturn and are ineligible for re-housing.
Applicants will have to have sufficient income to pay at least 30% of their interest.
Those with mortgage debt lower than £400,000 and savings of less than £16,000 will also qualify for the HMSS.

Lenders who have agreed to participate in the scheme include Bradford & Bingley, Lloyds Banking Group, Clydesdale, Yorkshire Banks, RBS, Northern Bank and Cumberland Building Society.
The Post Office, Bank of Ireland and Standard Life Bank are also expected to sign up, as are sub-prime lenders GE Money, GMAC and Kensington.

However response from Council of Mortgage Lenders (CML) to the scheme backed by the Government’s guarantee seems to be gloomy. According to Michael Coogan, director general CML, the HMSS is an additional helpful tool but CML is not sure that guarantee will be triggered in most of the cases.

Borrowers in negative equity being offered 120% mortgages

Halifax, one of the biggest mortgage lenders in the UK has come to the rescue of existing customers with offer of 120% loans at the end of their current deal.

HBOS, member of the Lloyds Banking Group is planning to offer new loans to customers who are in negative equity and whose current deals such as fixed rate are about to expire.

Normally in case of borrowers in negative equity, rates are reverted to standard variable rate (SVR) and it becomes difficult for them to re-mortgage if the amount of new loan exceeds property’s current value on account of house price decline.

Lenders are approving loans up to 95% of property value, but the customers bargaining for most competitive deals have to borrow not more than 60 to 75%.

However Halifax and bank of Scotland are offering same rates of 95% loans to re-mortgage customers who require 120% of the property value.

HBOS are extending negative equity loans this month up to 120% LTV, but will not be publicizing this anywhere. Brokers believe HBOS is possibly the only major lender helping the customers in negative equity.

Melanie Bien of Savills Private Finance remarked that HBOS was doing decent thing by providing loans at fixed rate to those in negative equity, which is normally given only to customers borrowing at 95% LTV. She urged other lenders to follow HBOS’s good example.