House sellers slash asking price to attract buyers

The UK housing market which has witnessed biggest slump in last few months is trying to revive itself as the home sellers have started cutting down the asking price by an average of £4,300. A survey report released, mentions that the rising number of unsold properties which reached the highest ever level, has forced the drop in the average asking price from £239,564 to £235,219 in England and Wales in the month of June. This is the second consecutive fall since drop of £3,000 in June.

According to the commercial director of Rightmove, Mr. Mark Shipside, sellers have realised about the positive impact of lowering the asking price. An approach of aggressive pricing is likely to improvement sale of properties. The survey indicates that estate agents registered on an average 77 properties for sale against 74 last month. This increase is attributed to the cut in asking price. The buyers were reluctant to buy property on account of credit crunch. The asking price cut has provided a well deserved relief to the buyers.

According to Rightmove, West Midlands registered the biggest fall of 3.7 per cent in asking price, followed by 3.3 per cent in the South-East. Greater London was the exception to the down trend where average asking price rose by 0.3 per cent, with Tower Hamlet recording an increase of 4.1 per cent.

Rent back to clear your debts and still keep your house

A popular option with many property owners is the rent back scheme wherein u can sell your property and then get it back on rent. You can get some cash quickly in the process in times of financial difficulty.
Financial difficulties can beset anyone anytime. Selling one’s property is one of the most common options to get cash urgently. With the help of a rent back scheme, you can sell off your property and then rent it back yourself. This way, you can even save yourself a lot of trouble in moving to a different place.

You can clear off any of your old debts with the help of the cash that you get from the sale of your property. You can also ward off any potential threat of foreclosure of your property. If you have any loans or debts, getting additional finance would be really difficult. Rent back schemes can be really beneficial in such times. The best thing about rent back schemes is that if in the future, you are better off financially, you can buy back the property again.

Rent back scheme helps you to unlock the value in your property for your own benefit. If you are facing financial difficulties, rent back might turn out to be a really good option for you.

Failure to provide energy performance certificate to tenants will invite heavy penalties

Landlords in the UK will have to pay heavy fines if the Energy Performance Certificates (EPCs) are not provided to the tenants, effective October, 2008.   Landlords, with the introduction of Energy Performance Certificate, will be bound to furnish details of energy efficiency and rented property’s impact on environment to the prospective tenants. This provision will be most beneficial for tenants who look for lower rents and minimum energy charges.

An EPC will be valid for ten years from the date of issue. Landlords will not be required to obtain and furnish new EPC for every deal for the same property during validity period. The tenant will have to be simply provided a copy of the latest EPC by the landlord after finalization of new deal. The certificate will highlight property’s ratings on energy efficiency and environmental impact, but the improvement suggestions mentioned in the EPC will not be binding on landlord for implementation.

The National Landlords Association launched a new service called NLA EPCs, which will offer certificates to NLA members for £69 each (VAT included). Landlords will be able to track progress of the EPC online.
According to the NLA chairman, the market should have taken initiatives in making homes more energy efficient. He acknowledged that landlords in the UK have started investing on energy saving measures to fulfil market’s demand for green property.

Oxford getting rid of devious Landlords

Landlords beware! Landlords with a poor history are being driven out of oxford through a public register being created that lists down homes approved for rent. The list is a result of the increase in the number of prosecutions of landlords by the city council letting out properties that are unfit for use.

Details regarding the scheme were released for the first time recently. The landlords are being asked to sign up for the scheme. Ian Wright, the chief environmental health officer at Oxford City council said that there are over 5000 homes, 11000 properties on rent and close to a thousand landlords in the city. Efforts are being made to list out the landlords who rent out properties that are unfit for inhabitation.

Similar schemes are already running in Norwich, Reading, Southampton and Darlington. There have been many cases where landlords have rented out properties with unchecked gas appliances, smoke and fire alarms, poor or no ventilation and defective windows. The list will push the landlords to fulfil their basic obligations of maintain the property properly.

Experts believe that this is a good move towards improving the accountability of landlords. People who are looking for renting properties can check the list of approved properties and landlords before taking any final decision.

Earn more by letting your property and renting another

A large number of families, who can afford moving away from their existing accommodation, are letting their property and shifting to rental homes.  Many couples are moving out of London, letting their two bedrooms and renting 4 bedrooms with huge gardens and beautiful surroundings.

Families are keeping their stake in the London market, keeping an option for returning if the new accommodation did not suit or to sale the London property if it could give big return. Shifting to new places is proving to be a good experience. Families are enjoying good environment and the company of loving neighbours. A family could let its two flats in London for £1,400 and £ 960 and rent a pretty cottage  for £ 950. The family could end up making good income and yet enjoy stay at the place of its liking.

The trend is getting popular with the families. You do not have to pay hefty maintenance bills. Families are realising that options like sell and rent, let and rent are more money yielding, yet safer. According to Hamptons International, property prices are going down by an average of £133 every day. The number of applicants opting to rent outside London has increased by 33 per cent. Hamptons International is finding it difficult to cope with the increasing demand of renting.

According to a property market analyst Hometrack, 28.3 per cent of young working couples are unable to buy property and believe that renting is the best option available to them.

Government takes steps to help the ailing housing market

The government is finally taking some steps to aid the housing market. Schemes like rent to buy will benefit first time buyers and new housing companies based locally. Caroline Flint, the Housing minister announced a number of measures to get the housing market back on track.

One of the measures is a scheme to aid first time buyers in homeownership. The minister also announced the creation of the first 4 PPP local housing companies. The schemes are aimed at helping people who are facing difficulties currently and also to improve the long term conditions in the housing market.

The new scheme will allow first time buyers who are earning lower than £60,000 a year, to rent their property at eighty per cent of market rent or less for 2 to 3 years and later on offer the option of part ownership of the property.

Four new local housing companies have been started to promote additional house building with help of a partnership between private firms and councils. The surplus land with councils will be put into the new bodies. Additional skills and investment would be provided by the private sector. The government also announced that it will work closely with housing associations and local authorities for examining proposals of mortgage rescue schemes

Dubai government owned company to buy London Developer Minerva

London developer Minerva is likely to be bought by the Dubai government’s property company Limitless for £260m. Limitless’s offer of £1.60 cash per share, was being negotiated since many months before its acceptance by Minerva. Share price of Minerva zoomed by 66 per cent up 48p at £1.20.

Minerva had been struggling hard due to downturn in the property market in the last 18 months. The rising levels of debt and negative cash flows had hit it very hard.  Limitless, under the advice of UBS, made the final cash offer last week after prolonged negotiations on price with Minerva.

According to spokesperson of Minerva, the proposal contained several conditions including completion of due diligence and recommendations by the Minerva board. It further added that even after reaching agreement on other terms and preconditions it is not certain whether the offer will be forthcoming.
Limitless has reserved the right to increase the level of its offer in the event of competitive situation at the same time it would reduce the price offer if Minerva paid dividend to its shareholders.

Minerva trades at wide discounts but the strong bias towards the City of London has soured the stock.
Minerva’s big retail asset in Croyodon has also run in to difficulties in getting a good anchor tenant. But, Limitless, which is strongly supported by the sovereign wealth, considers Minerva as the big bet for the market.

Are you new at property letting?

Property letting is not a matter of chance. You have to plan things properly if you want to let your property. It requires a lot of professionalism just like any other business. Property letting can be a very good source of income. However, if you do not choose your tenant properly, you can end up in a lot of trouble.

If you are new at letting property, you can take some advice from someone who has been letting property since a long time. It is better that you consult some professional expert to help you with this matter. There are some legal requirements that have to be fulfilled while letting a property. You can hire a lawyer for helping you with the legalities.

The most important thing that you should keep in mind while letting a property is the selection of a tenant. Getting a good tenant is not a cakewalk. You will come across hundreds of people who might be interested in renting your property, especially if your property is in a prime area. However, you should be very cautious is in deciding your tenant. A family is usually a better tenant to have, than a single tenant.

If you want to save all the hassles of letting a city centre property, for example in London, Manchester or Edinburgh, you can hire a property management firm that will do all the work for you. You will have to pay them their fees in return for their services. Property management in Edinburgh, London or Manchester for example isn’t particularly expensive, and if you’re not living near the property it can be very worthwhile.

Check the credentials of your tenant before renting your property

Renting your property is a good alternative for additional income. If you own a property which is underutilised, let it yield additional income for you. There is an ever increasing demand for rented homes in the UK. Renting a property opens up a source of income for you. It also entitles to you certain tax benefits.
When you rent, you do not hand over just rooms and space, but your investment to a tenant. It is therefore important to verify credentials of the prospective tenant. A good tenant treats your property as his own and always ensures that it is maintained well and protected from damages due to negligence. Proper up keep by the tenant, minimises maintenance expenses and hassles of organising frequent repairs.

Getting a good tenant is not an easy task. Many landlords, who fail to do proper investigation about the potential tenants, repent later. A bad selection lands you in numerous problems. A tenant may put you in trouble by not paying rent regularly. A bad tempered tenant can upset other neighbours with bad behaviour and non-cooperation. Many landlords end up spending large sums on repairs due to tenants’ negligence in upkeep of the property.

A good or bad tenant makes all the difference. It is better to go in for detailed investigations about the credentials of a potential tenant by visiting existing and past landlords and neighbours. You may visit your prospective tenant’s business or office premises to ascertain their financial status. A good selection eliminates all the problems encountered after renting. Remember - Prevention is better than cure.

Why should you buy a property?

Many people consider that renting a property is a better option than buying it. It may be right for some people under certain situations. However, buying property is like making an investment which can be really helpful in times of financial difficulties. Financial advisors put forth the following arguments in support of buying property rather than hiring it on rent.

A bought property is a life time asset:

Buying property is as good as investing money for your future. Its value appreciates continuously and becomes part of your net worth. The owned property stands as guarantor for you when you intend to take a loan from banks and private lenders. If you have more than one property you can rent it to others and earn more income without loosing your ownership of property.

Property is your Equity:

The value of your property, excluding loan amount if any, becomes your equity and a valuable asset. It grows with every renovation you do in the property and appreciates at the rate at which other properties in your surrounding area appreciate. When you borrow against your property, you also get the benefits of tax breaks. Your property stands for you in times of financial crises.

Most importantly, you can use, renovate and maintain your property the way you want. Ownership gives all the freedom to you!