Is it really unaffordable for first-timers to get on ladder?

THERE has been a lot of news recently about how tough it is for first-time buyers to get on the ladder. And if you only look at averages and don't really understand how the reports work, then the figures do look scary.

The critical point about house prices is that, when you are looking to buy, sell or invest, averages are pretty pointless!

Let's take Derby's average figures for the city. At the moment, according to the Land Registry indices, the average property price is £107,000. Taking the average wage for Derby, which is quite high versus the UK at £30,000, this means, for those on the average income, property is affordable, requiring 3.5x income to buy an average priced property.

The issue here, though, is what if you are one of the 20% of people on £15,000?

And as a first-time buyer, it's likely you aren't going to be earning the average salary, but you also won't be buying an average home.

Looking at things from a first-time buyer's perspective is much more helpful. If you are, say, working for the council, the starting salary is approximately £12,000 going up to £15,000 for a grade 4 or 5, while if you join the police, it could be more than £20,000.

So what are the options if you were on £15,000 or £20,000? If you take a look on the Derby Telegraph property site, there are currently more than 25 properties available for under £60,000.

These would be three times the income of a police officer and four times the income of someone on a grade 4/5 at the council.

Some of these properties are part buy, part rent, where you don't have to buy all of the property. You can buy 50% of it. This means you are purchasing a property which is actually worth £120,000. You pay a mortgage on half of it and rent the rest but 100% of the property is still yours to live in.

From a deposit perspective, there are mortgages around which will allow you to borrow 95% of the property's value. So at £60,000, you would need to find £3,000 for a deposit. You could buy through a Help to Buy mortgage scheme or a lender who offers 95% mortgages without the scheme.

The latter is preferable as it offers more flexibility if your lender allows you, for example, to rent a room or the whole property at a later date.

Hopefully this explains why "averages" are nothing to worry about. All they do is distort the reality of what's affordable. From a first-time buyer's perspective in Derby, it is possible to buy a property for a lot less than the average of £107,000.

Source: Derby Telegraph

A record 22.3m inquires about a house or flat were logged via a property portal

Search site says it is also making more money from advertisers, boosting pre-tax profits by 31% to £59m

A record 22.3m inquires about a house or flat were logged via the property portal Rightmove in the first six months of the year, in a sign that the UK housing market remains buoyant.

Rightmove said it was also making more money from advertisers. More companies have been buying space on its website, while average revenue per advertiser rose 13% to £671 a month, as advertisers opt for more expensive ad packages.

The surge in revenue helped boost Rightmove's pre-tax profits by 31% to £59m.

The company said more would-be homebuyers were logging on to its site through smartphones, with mobile users now making up 40% of total traffic, up from 30% a year ago. Rightmove sends out 700,000 property alerts a day to potential movers, a recent innovation that it credits with boosting page views and keeping competitors at bay. The number of estate agents using the website rose 3%, meaning that 16,700 now have a presence on the portal.

The take-off in the housing market has also boosted house builder Taylor Wimpey, which on Wednesday reported a 64% increase in pre-tax profits to £178m, as it published its results for the first half of 2014.

Home buying had not been restricted to London and the south-east, with sales and inquiries showing a "greater balance between regions", the home builder said. "Visitor levels have continued to be strong and confidence remains good amongst customers," it added.

Source: The Guardian

UK property market is buoyant but London market is slowing

 The UK, excluding London, has seen new buyer registrations rise 21% annually, while new property instructions are up by just 2%, according to new research.

At the same time the property market is described as buoyant with prices up 1% on last month and 8% annually to £175,728, says the report from Sequence which owns over 300 estate agent branches.

But the London market is slowing. In London new instructions are up 8% on the month and 19% annually but new buyer registrations are down 14% on the month.

There are 11 new buyers for every new property in the capital, a drop from 14 last month. The data also shows that London house prices are flat on the month, but up 21% annually to £457,833.

Overall mortgage applications seem to have bounced back following the new MMR regulations which were introduced in April and have increased by 13% on the month.

‘Demand for properties across the UK remains robust with new buyer registrations up over 10 times the rate of new instructions which are up 2%,’ said David Plumtree, chief executive officer of Sequence.

He pointed out that there are now over six buyers for every property coming onto the market, a two year high for June but in London there has been a slight cooling in demand. ‘This has led to an adjustment in pricing, with prices remaining flat on the month as vendors look to be more flexible in their views on sale price. There is still a great deal of activity in the market, with the number of viewings and offers up annually by 7% and 17% respectively,’ he explained.

‘This activity is translating into sales, which are also up 10% annually, so while there is a slight shift in the balance of supply and demand, the number of new properties on the market remains low and we still have close to 11 new buyers competing for every new instruction,’ he added.

He also pointed out that despite mortgage applications weathering the MMR regulations figures are still 5% below last year, although the appetite to buy across the UK remains very strong.

Source: www.propertywire.com

Majority of UK home owners expect property prices to keep rising in next six months

UK home owners remain very confident that property values will continue to rise over the second 

half of this year, but are concerned about mortgage availability, according to the latest sentiment survey.

New lending criteria following the introduction of the Mortgage Market Review in April means that 40% of home owner believe that getting a mortgage is now harder than it was three months ago, the latest Zoopla Housing Market Sentiment Survey has found.

Londoners are no longer the most confident about further house price growth but overall some 92% of home owners surveyed expect UK property prices to increase over the next six months, slightly down from a four year high of 95% earlier this year.

It is the first time in a long time that London home owners are not the most confident across the country about house price rises in their area. The South East, the South West, the East of England and the West Midlands have all overtaken the capital in terms of home owner confidence.

With London prices having moved up so far and fast, the proportion of homeowners in the capital who expect prices to rise over the next six months has fallen from 98% to 92% over the last three months.

And amongst the 7,810 homeowners surveyed by Zoopla, the average prediction for house price growth over the remainder of the year currently stands at 7.6%.

The Mortgage Market Review (MMR) and associated new lending rules have both slowed down the mortgage application process and made securing finance more difficult. Despite that, 79% of UK home owners plan to spend at least the same or more on home improvements over the next year compared to last year.

‘After months of consistent growth in the capital’s property market we are now seeing a slight increase in caution among London’s home owners. More broadly, securing a mortgage appears to be getting harder now that MMR has caused lenders to be more rigorous with their lending criteria and approval process,’ said Lawrence Hall of Zoopla.

Source: www.propertywire.com

Visitor economy : Derbyshire & Nottinghamshire

From Sherwood Forest to the Peak District and all urban attractions in between, tourism and the visitor economy is big business for Derby, Derbyshire, Nottingham and Nottinghamshire. A multi-billion pound sector, the region attracts thousands of visitors each year to its iconic landmarks and cultural events.

For *D2N2, the visitor economy covers a broad range of businesses, including hotels, restaurants, sports and leisure activities and museums and tourist attractions.

As part of its action plan for the sector, D2N2 has identified a need for more investment into Derbyshire and Nottinghamshire's attractions.

Headline projects include the £24 million revamp of Nottingham Castle, Derby City Council's regeneration of the Derwent Valley Mills World Heritage Site and the Buxton Crescent hotel and spa project.

As one of the central attractions to Nottingham, investment in the castle aims to double its visitor numbers to 400,000 a year, bringing more people to the city as a whole. The developments include a redesigned and extended museum section, opening up the caves beneath Castle Rock and installing a glass lift.

At Derwent Valley Mills visitor site, investment in developing parking and traffic facilities, flood risks and environmental impacts have all been put in place to improve the visitor experience.

The £35 million Buxton Crescent transformation into a luxury spa and hotel is due for completion in 2016.

D2N2 is keen for investment in these big projects and to also help smaller visitor economy businesses in the region including pubs, restaurants, hotels and accommodation.

One project aimed at drawing visitors is the Grand Tour 2015 – a year-long campaign boasting previously unseen works of art including Baroque, Enlightenment and contemporary artists. With investment from D2N2 and Arts Council Cultural Destinations, it is a joint venture between a number of firms including Derby Museums, the Harley Foundation and Chatsworth House Trust, as well as Visit Peak District & Derbyshire and Experience Nottinghamshire.

Partnerships between the public and private sectors can also be influential, as the recent visitor economy strategy meeting at Chatsworth House highlighted. Chair of Visit England, Lady Cobham, stressed the importance of D2N2 projects in helping the region's visitor economy grow.

Discussions at the meeting included ways to turn day-visits into overnight stays, bringing the food and drink sector closer to visitor attractions and boosting the skills sets of both existing and future workforces, particularly young people.

Due to the seasonal nature of the tourism and visitor economy sector, employment has fluctuated in recent years, but with more than 65,000 currently employed D2N2 is hopeful investment in projects with job creating potential will increase the number of workers.

This coupled with marketing activity will help lengthen the season and encourage longer stays which promotes the area and is better for the environment.


D2N2 has the Summer of Cycling for 2014, celebrating the Tour de France passing through Derbyshire, the Milk Race in Nottingham and L'Eroica Britannia cycling festival, with Derby's Velodrome due to be completed later this year.

For Nottingham Castle alone, 200 jobs will be created in the construction phase, with the potential for more service employment at once work is complete.

Recognising a number of opportunities in the visitor economy sector, D2N2 also relies on destination management organisations Visit Peak District & Derbyshire and Experience Nottinghamshire. The prospects include a greater dependence on branding, festivals and events involvement, and a more tactical approach to marketing campaigns.

Targeting potential opportunities in prevalent locations like Sherwood Forest, Creswell Crags and the Buxton Crescent restoration, D2N2 can not only improve the appeal for visitors coming to the region, but also invest in the people who work on them.

*The D2N2 is the Local Enterprise Partnership (LEP) for Derby, Derbyshire, Nottingham and Nottinghamshire.

Source: Derby Telegraph

Pensioner households worth more than £1m rise by 69%

Research showing that wealthier older people have benefited from property prices, larger savings pots and increased assets

Rents in England and Wales rose at twice the speed of average earnings in the year to June, according to the latest research by property company LSL.

The average monthly cost of renting a home increased by £10 during the month to £747, the figures showed, and was up by 1.4% year-on-year. This is double the 0.7% increase in earnings reported on Wednesday by the Office for National Statistics.

LSL's index, which is based on analysis of around 20,000 properties and looks at the rents achieved on them, showed the biggest jump in rents over the year was in the south-east, where tenants have seen costs go up by 2.9% to an average of £762 a month.

Within London, the average monthly rent has increased by 1.6% since June 2013, to £1,132, while in the north-east rents have fallen by 4.6% to £507.

Rising rents and property prices have helped push the annual returns made by landlords to the highest level for four years, LSL said, with the average gains from a buy-to-let property hitting £19,475 in the past 12 months. This is made up of a rental income of £8,158 and capital gain of £11,317.

LSL added that if rental property prices continue to rise at the same pace as the past three months, the average buy-to-let investor in England and Wales could expect to make a total annual return of 13.4% over the next 12 months. That is equivalent to £23,718 per property.

"Landlords have noticed these incentives [high capital gains and rental yields], and this has helped to bring a good number of new properties into the lettings market," said David Newnes, director of estate agents Reeds Rains and Your Move, part of LSL Property Services. "Some ideas like rent controls and outlawing tenant fees would only serve to drive investment away."

Source: The Guardian

UK landlords report tenant demand is stable or growing

Almost all landlords in the UK report that tenant demand is currently stable or growing, according to the latest quarterly survey from specialist buy to let lender Paragon Mortgages.

Landlords also reported an average yield across their rental portfolio of 6.2% in the second quarter of the year, a slight increase on the previous quarter when the average was 6.1%. The average yield has remained around this level for the past 12 months.

In the second quarter 38% of landlords said that they were feeling more optimistic about the prospects for their rental portfolios. Some 56% stated that there had been no change in their views, and just 4% said they were feeling pessimistic about prospects.

Looking ahead, 16% of landlords are planning to add to their rental portfolios during the third quarter.

The survey also shows that there has been no change in the types of property landlords are planning to invest in, with terraced houses remaining the most popular with 55% of those expecting to buy choosing this property type.

There has been a slight increase in popularity of detached houses, with 15% of landlords expecting to buy this property type compared to 12% last quarter.

Some 72% of landlords said that they thought rental arrears levels would remain stable in the next year, only 11% expect levels to increase. Overall, the feedback from landlords suggests that only marginal movement in tenant arrears is predicted.

‘It is interesting to see the improvement in confidence amongst landlords in the private rented sector. We are seeing much more activity in the private rented sector and, in turn, the buy to let market as a result of continuing strong rental demand and the investments made by landlords,’ said John Heron, managing director of Paragon Mortgages.

‘Tenant demand is clearly staying very healthy, and this is likely to remain a common trend over the coming months, particularly as we are still not seeing the level of house building that the wider housing market so desperately needs,’ he explained.

Source: www.propertywire.com

Multi-million pound work at De Montfort University's campus, Leicester

A ground breaking ceremony has taken place at De Montfort University to mark the start of multi-million pound building work to the campus.

Groundbreaking ceremony at Mill Lane, at De Montfort University's campus to mark the start of building work for a huge £136million campus transformation project. Dr Jonathan Choi, chairman of the Sunwah Group and Pro-Vice Chancellor Dominic Shellard broke the ground

The low rise Fletcher block and the university’s former Students’ Union building has been knocked down to make way for striking new buildings to house architecture, design, fashion and textiles, and art courses.

A new addition to the university’s plans will be a Chinese creative and cultural centre - the vast majority of which will be paid for by the Sun Wah Group - a Chinese business conglomerate which already has strong connections to DMU through its business school at Lioning University in China.

Professor Dominic Shellard, vice chancellor of DMU, said: “This is an historical day for De Montfort University. When I became vice chancellor four years ago, it was clear we had to do something dramatic and offer students cutting edge facilities.

“These buildings will replicate the experience of being in Gucci workshops or Prada’s workshops and help students move into the world of work fully prepared for high end equipment because that’s what they’re used to”.

                                                                                                    Professor Shellard compared it to the Kings College, in Cambridge.

Professor Shellard added that a “wonderful green space” was also being created as part of the university’s 

campus plans, which would lead down to the River Soar. He compared it to the likes of Kings College, in Cambridge.

The new creative and cultural centre will provide space for staff and students to study and research. It will house exhibitions on Chinese and British creativity, focusing on fashion, dance, drama, art, graphic design, gaming, and product design among others. Traditional Chinese skills such as Tai-Chi and calligraphy will also be taught.

The designs include atrium spaces with open galleries to maximise views between floors and between departmental areas, display areas to show off students’ three-dimensional work and digital internal and external displays to provide a platform for their work.

Landscaping around the site will create parkland with lawns, formal courtyards and a riverside walk.

The area is being dubbed the “green lung” and will run through the heart of the university’s campus.

Costs of the redevelopment will run to around £136 million, part of which is being paid for using a £90 million public bond financed by four major lenders – M&G Investments, Legal and General, Scottish Widows and Kames Capital.

Other works will take place in due course, including the expansion of the current Students’ Union.

The main part of the project is expected to be completed by 2016.

Sources: Leicester Mercury, BBC News

£1.5 million on improving Leicester's streets

More than £1.5 million could be spent on improving some of Leicester's historic streets.

Council bosses are to set aside £450,000 to spruce up the Greyfriars area around the city's cathedral.

They hope the move will prompt the Heritage Lottery Fund to release a further £1.1 million.

If the council succeeds in securing the lottery cash, the money will be used to provide grants and advice to businesses, property owners and community groups to help repair and restore buildings.

The five-year project will focus on New Street, Millstone Lane, Friar Lane, Wycliffe Street and part of St Martins and Peacock Lane.

The area is expected to see an influx of visitors after the opening of the new Richard III visitor centre next Saturday, and then the re-interment of the king's bones at Leicester Cathedral next year.

The aim is to invite property owners and leaseholders to apply for financial support to repair and restore building frontages, reinstate lost architectural features, such as original windows, fencing and decorative masonry, or bring empty floor space back into use.

However, the council has said it does not yet know how much money will be available to each bidder.

City mayor Sir Peter Soulsby said: "This area is one of the architectural treasures of the city centre.

"These proposals are about making over £1.5 million of funding available to businesses and property owners in this historical area and to work with them to bring about lasting and positive improvements.

"It is vital that we invest in and show off the unique character if we are to fully realise the huge potential that exists in this historical and architecturally rich area of the city."

Sir Peter added: "We have a lot of wonderful Georgian architecture there.

"It's perhaps not as dramatic as the Jewry Wall or the fine churches but it is very impressive."

The project will also include training courses and research workshops to help people learn more about the history and architectural character of the area.

A final decision on the lottery funding is expected to be made in December. If the bid is successful, the council's investment of £450,000 will be made from money set aside for the Leicester Economic Action Plan. The council says the initiative will link in with its Connecting Leicester programme, which includes several multi-million pound projects – Cathedral Gardens, Jubilee Square, the redevelopment of Leicester Market and improvements to nearby Guildhall Lane and Applegate.

Source: Leicester Mercury

UK house prices up 10.5% year on year

UK house prices up 10.5% year on year, latest ONS data shows

UK house prices increased by 10.5% in the year to May 2014, up from 9.9% in the year to April 2014, according to the latest index from the Office of National Statistics (ONS).

House price annual inflation was 11% in England, 6.5% in Wales, 3.6% in Scotland and 0.7% in Northern Ireland, confirming that price growth is now reaching the whole of the nation.

Overall house prices are increasing strongly across most parts of the UK, with prices in London again showing the highest growth. Indeed, annual house price increases in England were driven by a record annual increase in London of 20.1% and to a lesser extent increases in the South East of 9.6% and the East at 8.6%.

Excluding London and the South East, UK house prices increased by 6.4% in the 12 months to May 2014 and on a seasonally adjusted basis, average house prices increased by 0.8% between April and May 2014.

The data also shows that in May 2014, prices paid by first time buyers were 11.3% higher on average than in May 2013. For owner-occupiers prices increased by 10.1% for the same period.

David Newnes, director of Reeds Rains and Your Move estate agents pointed out that the housing market recovery continues to seep across the country beyond the capital.
‘Consumer confidence is travelling further afield, but a balanced view has to be taken as some regions of the country have seen very little house price growth. Places like Lancashire and York are still experiencing annual growth below 1%,’ he explained.

According to Paul Smith, CEO of haart, recent statistics from the same government department show that nine of the 12 regions of the UK are still below their peak in January 2008.
‘This helps keep things in perspective. It’s a positive that house prices are continuing to recover around the UK while London remains a law unto itself, but even here we are seeing prices tail off which is a good thing,’ he said.
‘More stock is coming onto the market and with it more choices for buyers. The market generally is not over heating so the government and Bank of England must take great care not to apply the brakes too early,’ he added, referring to recent mortgage caps and talk of interest rate rises before the end of the year.

Source: http://www.propertywire.com/

House prices to keep rising in the West Midlands

Average house prices in the West Midlands are on course to break the £200,000 barrier by the end of next year, says a new report.

Officials say it is a sign of the increasing strength in the region's economy, with growth expected to almost double this year.

Experts at leading accountancy firm PwC – formerly PricewaterhouseCoopers – say the recovery in the wider UK economy could see interest rates starting to rise as early as the end of this year.

While that might cause a slight slowdown in the housing market, as some families shy away from the prospect of higher mortgage repayments, PwC is still predicting average house prices in the West Midlands could hit £210,000 by the end of next year.

And they could rise as high as £256,000 by 2020

It is a reflection of how the UK housing market has leapt back into life over the past 12-18 months, with prices rising across the country.

At the moment house prices are expected to rise eight per cent in the West Midlands this year, up from £184,000 at the end of 2013.

Growth in the West Midlands is expected to pick up from 1.6 per cent in 2013 to around 3.1 per cent in 2014, in line with the rest of the UK.

Mark Smith, regional chairman at PwC in the Midlands, said: "These latest figures show the West Midlands economy is now gathering real momentum as business investment starts to pick up. The unemployment rate in the region has also fallen faster in 2014 than any other UK region, falling by 57,000 over the past year. In addition, inflation has fallen faster than expected recently, and we expect it to remain at or slightly below target in 2014-15".

Source : Express & Star

Landlords 'expect a 20k income' from their properties in retirement

Landlords 'expect a £20k income' from their properties in retirement - and third of all retirees considering buy-to-let

Buy-to-let landlords expect their property investments will contribute almost £20,000-a-year towards their incomes in retirement, a study has found.

Landlords expect that more than half of their retirement income will come from their rental properties, an estimated £19,785, according to a survey of 500 buy-to-let investors by Platinum Property Partners.

On average investors expect their retirement income to total £35,600, with the rest made up of state and private pensions, as well as other investments.

Source: http://www.thisismoney.co.uk/

House prices edge up again, says Halifax

House prices are continuing to edge up, according to the the UK's largest mortgage lender, the Halifax.

Measured on an annual basis, house prices in June rose by 8.8%, up from 8.7% in May. However, the survey provides further evidence that the rate of house price growth is starting to moderate.
On a monthly basis, prices fell by 0.6% between May and June. This was the fourth monthly fall since last December.

On the more reliable quarterly measure, prices rose by 2.3% in the three months to June.That figure has changed little since June 2013. The average house price across the UK is now £183,462, said the Halifax.

"Housing demand continues to be supported by an economic recovery that is gathering pace, with employment levels growing and rising consumer confidence (...)" said Stephen Noakes, Halifax's mortgage director.

Last week, the Nationwide Building Society said prices had risen by 11.8% in the last year, and were now higher than at the peak of the market in 2007.

Source: BBC News

Prosperity is hiring! (UK)

Business Development Manager/Account Manager, UK

£40,000 OTE +++ huge prospects for the right person as part of this dynamic business.

An experienced Business Development Manager with established contacts is required to join our UK based investment company. Prosperity currently provides property investments to international clients across primarily Asia and the Middle East. Your goal will be to establish, grow and develop the UK market and advisor networks. Starting as a business development manager, growing upon attainment of targets to account manager and finally Director of UK. Whilst travelling this path, developing and driving new business forward, you will be targeted on new business generation via external introducers through business to business relationships as your primary role. You will explore and maximise the potential business of our existing connections already in place by presenting to these introducers and training their advisors, whilst sourcing, locating and acquiring new business channels and distribution - combined with direct client appointments where necessary.

Prosperity are a small but dynamic team developing a rapidly growing business, looking for this new key team member who can grow and develop both your existing industry contacts and new relationships, working in a self-sufficient manner.

Desired Skills and Experience

• Good communication and presentation skills
• Motivation for Sales and Sales Planning
• Good market knowledge
• Prospecting skills
• Tact and diplomacy
• A good grasp of numbers and the ability to write documents in a professional style
• Excellent self-management and organizational skills
• A hunger to stay up to date with economic matters
• Financial Services industry experience required

Apply!