There are a number of policies now available in the UK to offset any potential drops in the equity of your home. Some insurers are now offering equity protection policies, in short these policies usually a one off payment will protect the policy holder from a drop in their properties equity. If the policy holder buys a property for say £180,000 and in three years they could only realise £175,000 from the sale of that property the insurance will pay the difference.
This is interesting because it essentially says that some large insurance companies are confident that they can make a profit from essentially betting that there will not be any substantial equity drops in the UK housing market in the short term. With the recent gains in UK house prices could this be another sign that the property market is at the start of a sustained recovery.
October 21, 2009
Property equity insurance, are underwriters betting on house price rises?
October 20, 2009
Increase in Mortgage Volumes to 29%
Recent figures place the year on year mortgage lending volume up by 29% for August 2009, this in part is due to the increase in mortgage lending for house purchases.
The volume for remortgages and buy-to-let has dropped, so why is volumes up? It looks like the number of properties at the lower end of the market is the driver for these figures. So as lenders begin to slowly unwind some of their tighter lending criteria we could soon see some more positive data released.
October 19, 2009
Property financers no longer mesmerised by mezzanine
The use of mezzanine funding has drop dramatically as the lenders have turned off the supply of money. Mezzanine development funding, used to “top up” undercapitalized property development deals, has long been the life blood of developers, who have great deals but have already committed their own funds to other projects.
This might allow a developer to at least achieve some of the profits lock into a development that they may otherwise not be able to get funded. There is a great deal of risk for the lender, although they may take charges on the development or other assets, in a market that is not raising the risks are high. This is why many mezzanine funders will charge up to 50% of the funds they lend, which usually takes a large profit slice. So as the market has cooled, the availability of this type of funding has greatly reduced, now many are calling the bottom, will we see more inventive funding structures return?
October 18, 2009
Commercial property companies secure returns of 8%
Leases are being agreed in the capital, for periods exceeding 10 years and are giving returns above 8%, property investment companies are calling the bottom of the market. Some say that the capitals commercial property market hit the bottom back in spring of this year, and they expect a steady rise in both capital values and rental returns. Some property companies are taking a slightly more cautious view because they are concerned there could be a drought in rental demand as the economy is still in the early days of the recovery.
The braver trail blazers of the UK commercial property markets point to an expected increase in demand, as the economy recovers. This could lead to a scramble, as companies rush to get back into the top locations, to take advantage of the recovery.
Sharks circle commercial property deals
Some of the big fish of the commercial property world are rumoured to be circling, looking to take a bite of any deals that have been treading water in the recent rough seas. Some of the best known and respected commercial property investors have been quietly raising cash and funding in readiness to get their teeth into some new acquisitions.
With large multi-million pound deals recently changing hands for returns of 6%, some feel there will be some fantastic investment gains to be made in the medium term. The commercial property sector is also starting to be tipped by a number of financial commentators. With the recent raises in capital values and more optimism about rental returns in the medium term, it is no great surprise that many property companies are waking from their recent slumbers.
Capital leads the rise in capital values
The London property market long described as an international market, is without a doubt leading the way, in the UK property market comeback. Recent data suggest that a staggering 79% of surveyors have seen prices increase over the past 3 months in the capital. Many commentators are now suggesting that London may have seen the last of its house price falls.
The London property market has long been used as an indicator for the future of the rest of the UK property market. The ripple effect as it is know, has usually proved that when property prices rise in the capital, the rest of the UK follows the same pattern.
Some property professionals are predicting rises of up to 40% in the price of London property in the next four years. One thing’s for sure many professional developers and investors will be watching the market closely and deciding to buy sooner rather than later.
Job Vacancies
Opportunity to earn £4k plus per month, must have good sales experience and experience of selling home improvements. Contact us by e-mail F.A.O Angela.
We only want the best applicant must be looking for a career not a job, fantastic bonus opportunities. Working in Nottingham, Derby, Sheffield and Stoke-on-Trent areas. You will be running small teams of 5-10 trades’ people. Contact us by e-mail F.A.O Angela.
Are you prepared to learn, have your own transport and want a long term opportunity to improve your life? Experience in construction or engineering an advantage. Contact us by e-mail F.A.O Angela. Contact us by e-mail or simple click the get a “free quote button”, and fill in your contact details. Contact us via our enquiry form to be considered for : contracts, tenders, building, electrical, maintenance, security systems work and professional partners status.
Due to our recent success in securing a number of commercial contracts and being selected as the preferred installer and reseller for security products in the midlands, we currently have work available for the best subcontractors and other property professionals. If you could please take the time to send us an e-mail or fill in our enquiries form you will be considered for our data base. We would prefer you do not contact us by phone.
Jobs available :
- 4389 : We are looking for a reliable tradesperson to pass on small domestic building / joinery works, in and around Derby, Belper, and south Derbyshire.
- 4342 : Supply and installation of UPVC windows and doors in the Derby and Nottingham area MUST BE FENSA REGISTERED.
- 6012 : Installation of security systems alarms, fire systems and specialist security products.
- 4311 : Nottingham excavation and infill of small domestic trial holes for structural reports.
- 4312 : Removal of plaster and minor works in and around Nottingham.
- 6047 : Installation of domestic security lighting, changing light fittings and other minor works. Must be part “P” approved.
- 6058 : Installation of security systems in all areas of the U.K. please register for further details.
- 1010 : Experienced company to provide property management in and around Stoke-on-Trent / Staffordshire.
- 1012 : Property traders, finders and buyers though out the midlands.
We require references, testimonials, copies of the all certificates, insurance, CIS etc.
We will advise you on the further information we require once your e-mail has been reviewed.
October 17, 2009
UK home owners increasingly optimistic about the Housing market recovery.
There is definite historic data to prove that house prices increase when the number of property transactions is increasing. So what drives the number of transactions, well one strong factor is property market confidence.
So what does the average UK home owner think will happen to house prices? Well if recent data is correct it says that over 75% of UK home owners surveyed, believe that UK house prices are to rise over the next six months. Many home owners have seen a large increase in the transactions locally and believe that it is a sure sign that prices will rise.
If lenders can keep up with sentiment, the future is looking increasing optimistic for UK house prices.
October 16, 2009
Latest figures rise to prove many investors were right to back UK Commercial Property
The latest figures are very exciting with healthy raises in capital values and the speculation that many landlords plan to increase rents in the medium term.
The most interesting measure is the yield impact figures that are starting to hit the market with talk of figures as high as 1.75%. This would be the highest yield impact figures seen in the UK Commercial Property sector since the glory days of 2005.
More positive news for capital values as all three commercial property sectors enjoy capital growth, with averages of between 0.8 and 1.4 % in offices, industrial and retail property. This is the first time we have seen an increase in the value of the office sector of the market since 2007.
October 15, 2009
Save thousands on renovations costs of auction properties
Many novice investors and developers simple lack the experience to affectively cost works to a property they are looking to buy at auction.
Many do not want to invest in a full survey prior to auction as they cannot be sure they will purchase that property. So how do you balance out the risk of buying without a survey against the risk of incorrectly pricing the works which could run into thousands of pounds?
One way would be to get a local building contractor to price you proposed works before you go to auction. The only issue here is that the best building contractors are busy successful people who do not wish to price works on a property that you the purchaser may not even buy.
So we at Building Solutions (Midlands) Limited decided to carry out a survey of some of our new and existing customers to provide a solution to this particular issue.
We discussed the results with all our team and put together a totally new product, the “Property report”, for a small fee of £120.00 we will visit the property you propose to purchase, and give our assessment. The site assessment although not carried our buy a qualified surveyor is conducted and written by one of our project managers with a minimum of 10 years experience of renovating auction properties.
This product offers a cheaper alternative to a full structural survey and let you know the estimated costs or advisory notes on the visible issues. If you then go on to purchase the property and having meet some of our team choose us to carry out these works, we will refund you the cost of the report in full.