Property

According to a report in the Telegraph, the National Association of Estate Agents (NAEA) have found that the typical number of house hunters registered per branch in December was 294, 32 more than the average figure for November, with viewings continuing right up until the Christmas break.

House prices are "lacking genuine direction", according to the Halifax, as it reported a 0.5% fall in values in September compared with August.

Prices were down 2.3% from a year ago, leaving the average home in the UK worth £161,132, the lender said.

It said there had been a mixed pattern of monthly changes in prices, but broad stability overall.

And the lender said it expected little change in prices and activity during the rest of the year.

"Greater uncertainty about economic and personal financial circumstances, together with pressure on householders' finances from weak earnings growth, higher inflation and increases in taxes, are likely to be constraining housing demand," said Halifax housing economist Martin Ellis.

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Tony Cooper, former chief of the Rural Payments Agency (RPA) received a 'golden goodbye' or more than £300,000 when he left the post last year.

According to the agency's annual accounts for 2011 Mr Cooper, who was chief executive of the RPS for four years, received an exit package of £311,000 which included early retirement benefits of £243,803 and £67,007 in respect of "compensation in lieu of notice".  The package also included untaken annual leave worth £12,886 and a bonus of £15,000.  Mr Cooper retires with a pension pot of £1.3mill and a lump sum of £190,000.

The accounts showed the agency also employed three temporary finance directors during the last financial year, costing £500,000 in wages and recruitment fees.

Conservative Anne McIntosh MP, who is also chairwoman of the government's Environment, Food and Rural Affairs committee, said the financial packages appeared generous in the context of the agency's poor performance in paying out single farm payments.

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Research carried out by the Royal Institution of Chartered Surveyors (RICS) has concluded that increasing numbers of homeowners are deciding to carry out improvements to their current property rather than move house.

Overall, 48 per cent of chartered surveyor estate agents revealed the slow sales market is prompting people to improve their properties rather than move. Across the UK, this was most prevalent in areas where the property market is more depressed, such as Northern Ireland, where 75 per cent were improving rather than moving and the West Midlands (71 per cent). However, even in more buoyant areas such as London, buyers are facing high property prices which are also prompting them to stay in their homes.

For those undertaking work to their homes, 44 per cent of surveyors reported additional bedrooms were the improvement which added the most value. Traditional improvements such as adding a new bathroom or kitchen were the next most valuable, at 18 per cent. Adding a conservatory, or reinstating period features were seen as desirable optional extras but not ones which add value.

Surveyors also noted that costs incurred for improvements will not always be covered by the potential increase in a property’s value, as this also depends on the quality of work and other features of the property, such as its style and location.

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According to Property Talk Live rents in Central London are on track to increase by 8 - 10% this year, putting even greater pressure on the finances of tenants in the capital (source: Cluttons' Residentail Property Forecasts June 2011).

According to Cluttons the significant pressure the increase will put on households, who are facing depleting incomes and job insecurity, means that it is unlikely that demand for rental property will be dampened.

Tenants have already adjusted to record rent increases of 19.1% in 2010 and now face further rises as the mortgage famine and low consumer confidence feed the demand for rental homes.

Will this increase have a knock on effect on rental prices in the Midlands.  We are experiencing steady growth in rental incomes and demand for rental properties in rural areas remains strong.  Watch this space....

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The property website 'Rightmove' reports that overly optimistic sellers increased asking prices in April by 1.7% but potential buyers continued to stay away from the market, leading to a high proportion of unsold houses.

There are many costs to take into consideration before you decide to become an investment landlord. 

Every investor's aim should be to create a realistic, and profitable, yield so you need to give consideration to a number of obvious and hidden costs.

The biggest outlay will be the intial price of the property including all the associated costs - solicitor's fees, stamp duty, mortgage arrangement fees and survey costs.  It might be best to seek professional, expert advice and an experienced property agent should be able to answer your queries.  Depending on the type of letting are you are considering, you might also need to consider the costs of adapting the property - Houses of Multiple Occupancy require special arrangements for fire exits etc.

When it comes to letting the property you will be well advised to use a letting agent but if you are planning to let the property yourself you will need to advertise, which can be costly in itself.  There are a wide variety of ways to advertise including, local press and websites, and costs will vary accordingly.  Using a property agent will, however, give you wider coverage and often at less cost as they have regular slots with the local media.

Once you have a potential tenant you will have to consider the costs of credit checks and drawing up the lease (which will need careful consideration in itself).

Ongoing costs to be considered will include insurance, landlord checks and maintenance.

If you would like more information on becoming an investment landlord talk to Annabel or Mike at Barbers Rural.

A report in the Daily Telegraph suggests that giving your house a name, rather than a number, might help you sell it.  The name "Rose Cottage", "The Lodge" or "The Woodlands" conjures up images of a rural idyll and property full of character, far more than if the same house merely had a street number, according to a survey of 4,000 consumers.

The report suggests that home buyers can be influenced by a name even before they have visited the property.  The survey was undertaken for the property webstie Globrix and found that one in 14 people said they would be prepared to pay more for a home just because it had a nem.  Even those that were not prepared to pay more said their opinion of the property would improve, with 40% saying they would be more interested in viewing a property with a name.

Investigation with the Land Registry reveals that 1.4 million of the 26 million homes in Britain have names.  With the average house valued at £216,968, just an extra 1% would work out as over £2,000 extra for the same property that simply had its postal address changed to a name.

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Rosie Murray-West writes an interesting article in today's Telegraph giving useful advice to would-be first time-buyers.

She comments that first-time buyers will have to ask themselves some serious questions before they take the great leap into property ownership.  Analysts have comment that the falling property market has yet to find its floor (see our blog 7th April).  Although interest rates are currently at historic lows, potential buyers will have to be very careful about taking on a mortgage when repayments could potentially increase.

The market for farmland continues to rise as prices hit an all time high.

According to Dr Jason Beedell, head of research at Smiths Gore, demand continues to outstrip supply. 

“Farmland prices rose by 4 per cent in the first quarter of 2011 to an all time high of £7,900 per acre, showing the strength of the market compared with others, such as the housing market, which is still weak,” said Dr Beedell.

At the end of the first quarter, bare land values averaged £5,600 per acre (£13,832 per ha), up 5% on the previous quarter.  Equipped land averaged £8,600 per acre ("21,242 per ha), up 4%.

“You also appreciate just how small the market is when you look at individual regions, let alone counties. There have been only two blocks of land over 50 acres for sale in the whole of the North East since Christmas”, said Dr Beedell.

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