House Prices « Building Solutions (Midlands) Blog

March 10, 2010

Downward pressure on house prices as supply exceeds demand

Filed under: Domestic, Estate agents, Finance, House Prices, Mortgages, Property — Amanda @ 10:45 pm

There has been a recent rise in the number of agents reporting an increase in available properties, to 15 per cent from -20 per cent, described as “the first sustained shift towards supply for two years”.

While market indicators are consistent with further house price increases, recent gains have been attributed to the lack of property available. Lower interest rates, better mortgage deals and patience from lenders has meant that more homeowners have been able to stay put during the recession, rather than being forced to sell. As prices have increased, homeowners have put their properties on the market, which may have contributed to February’s price fall, along with the end of the stamp duty holiday and bad weather at the start of the year.

Price falls have been reported in Yorkshire and Humber, the West Midlands, Wales and the North.

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March 9, 2010

Investors look to land deals for higher investment returns

Filed under: Architechtural, Builders, Commercial property surveyors, Finance, House Prices, Property, Property Auctions, Property Development, Property Investors, Property development funding, UK landlords — Tags: Top end property developers prepare for the upturn — Richard @ 9:46 pm

Some of the big names in house building and property development are thought to be assembling land banks using a mixture of private and bank financing. Many insiders in the property sector believe that although house prices may be fairly volatile throughout 2010 with prices bouncing along the bottom they will remain relatively constant on a year on year basis. So when the market turns those brave souls in the industry who have had the for thought to buy while the heard are selling, will be very well placed to ramp up the build phase and get the maximum profits when the upturns comes.

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March 7, 2010

Is now the time to make money from property?

Filed under: Architechtural, Builders, Commercial property surveyors, Conversions, House Prices, Property, Property Auctions, Property Development, Property Investors, Property development funding, Renovations — Tags: Should I buy a house now or wait until next year? — Richard @ 1:24 pm

With many in the industry now predicting a double dip, and the latest figures showing a 1% fall in property prices last month, you would need to be brave to purchase a new property development or renovation project. The price of auction property and those in need of modernisation is directly related to the property market sentiment. When there is talk of us being “out of the worst of it” and the “green shoots of recovery”, you can almost see the auction guide prices rising with every positive comment. Considering that most large property developments, conversions, and renovations will take up to a year to be back on the market, you must consider where prices will have settled in a year’s time. If your project requires planning applications, conservation works or grant funding the project period could be nearer to 2 years. So is now the best time to profit from the populations concerns of further pressures on property prices. With Land prices facing a recent revival it look like some of the larger house builders are confident that the future is brighter than many believe.

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March 6, 2010

Renovating ex-local authority houses

Filed under: Builders, Conversions, Estate agents, Extensions, House Prices, Property, Property Auctions, Property Development, Property Investors, Property development funding, Renovations, UK landlords — Tags: Best value houses? — Richard @ 9:02 am

What can be done by way of improvements / modernisation / upgrading to the latest property regulations, and decor, progressed by private investors to ex-local authority properties was outlined in an article in a national newspaper last weekend (Sunday 28th February). The national Sunday newspaper article concerned highlighted what had been achieved in the Midlands.

Ex-local authority houses usually have a lot going for them in that more often than not they are located in an area which has easy access to local amenities :- shops, doctors, dentists, buses, and schools.

Such ex-local authority properties are also usually well built, have reasonably large sized rooms, have been maintained well by the local authority concerned. They also often have a good sized garden with space to have a shed or other outbuildings. Some of these properties can be adapted so that off road parking can be provided, if not already provided.

After the builder has done the necessary work it can be hard to imagine what the house looked like originally, but builders can make such properties into lovely modern homes.

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March 2, 2010

New build development for profit

Filed under: Architechtural, Builders, Commercial, Commercial property, Commercial property surveyors, Conversions, Domestic, Estate agents, Finance, House Prices, Property, Property Auctions, Property Development, Property Investors, Property development funding — Tags: Land owners and investors look to joint ventures for higher profits. — Richard @ 9:12 pm

House builders are starting to see the first signs of a recovery in the UK housing market, with the values of land gradually improving and their off plan sales improving they can see the first green shoots of recovery in the house building sector.
One of the remaining challenges for the sector is down valuing, when property surveyors are recommending lower property values than that estimate by the developers. The values of the finished homes on new build developments is the most critical number in a development appraisal these figures make up the GDV, gross development value. Once the land costs, build costs, and overheads are removed the remaining balance is the developer’s profit. If the property developer over estimates the final sales prices the results can be financially devastating for the development project and the property developer. With more land owners looking to complete joint venture as a result of a less fluid market for residential development sites, more and more investment consortiums are pawing through the figures and estate agents comparables to make sure the sums add up.

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February 27, 2010

Property prices show first falls since house price revival

Filed under: Commercial property surveyors, Domestic, Estate agents, Finance, House Prices, Mortgages, Property, Property Auctions, Property Development, Property Investors, Property development funding — Tags: Property developers wish for crystal ball — Richard @ 9:52 pm

Recent figures have shown that the average UK house price has dropped for the first time in recent months, missing the double digit inflation predicted by many. This falter comes after the end of the stamp duty holiday so there is evidence to suggest that the missing sales and higher offers have all been used up before the stamp duty holiday ended. The bank lending criteria has loosened but with the chance of an increase in interest rates, 2010 looks to be a great year for predictions with one thing for sure some of the pundits will be left with egg on their faces.

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What is the future for HIP’s home information packs?

Filed under: Commercial property surveyors, Estate agents, Finance, House Prices, Letting Agents, Property, Property Auctions, Property Development, Property Investors, Property development funding — Tags: Home exchange packs set to replace HIP’s? — Richard @ 7:44 am

The shadow housing minister is thought to be planning to scrap HIP’s home information packs as soon as possible after coming to power. Many estate agents, property traders and developers see the removal of the HIP’s as an integral part of a housing market recovery.
The EPC or energy performance certificate is thought to be safe and has proved more popular with home buyers and home sellers. The energy certificate does make sellers give more thought to their properties green credentials. For over ten years since the HIP home information pack first became a proposal of the Labor manifesto it has been surrounded by controversy. The first signs of the HIP’s replacement are just starting to gather credibility. It looks like the “exchange ready packs” of ERP’s will be the replacement for the HIP’s, this pack is aimed purely at speeding up completion after exchange. These pack would reduce the average exchange time period by well over half, they will include local authority searches, drainage water searches, a property information questionnaire completed by the seller and answers to standard questions from the buyer’s solicitor. The biggest advantage of these changes is that these packs will not need to be provided for the first 30days of marketing which will be a vast improvement from the HIP’s which are required for day one.
The other good news for the housing market is that a conservative government has pledged to scrap stamp duty on properties that sell below £250.00.

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February 20, 2010

Heavy hitters in buy-to-let return to the ring

Filed under: Commercial, Commercial property, Commercial property surveyors, Conversions, Estate agents, Finance, House Prices, Letting Agents, Property, Property Auctions, Property Development, Property Investors, Property development funding, Renovations, UK landlords — Tags: Buy to let returns to fight after a count of 9? — Richard @ 4:23 pm

Some of the so called heavy hitters including ex-boxer Andreas Panayiotou are starting their first major residential property purchases for years. Many of the “clever players” sold out in late 2006 early 2007 when they grew increasingly concerned with the very low yields being achieved from both commercial and residential property investments.
There is always a demand for buy to let as many use this investment vehicle to provide a passive income for their retirement. Interestingly there is increasing speculation that some large instructional investors are looking to residential investment property to supply them with higher yielding investments.

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February 16, 2010

Buy to let in 2010 looks to improve as property investors put their money back into the property market

Filed under: Finance, House Prices, Letting Agents, Property, Property Auctions, Property Development, Property Investors, Property development funding, UK landlords — Tags: Better returns for investors? — Richard @ 6:49 pm

Buy to let lending increased in the final quarter of last year as property investors look to buy houses at the bottom of the property market cycle. Property Investors many not believe that the market has hit the bottom, but many believe that even if we have not hit the bottom yet, we are not far away. The best bargains are always achieved prior to a housing market recovery, and as the more seasoned and experienced property investors are back in contact with estate agents it show that the sentiment is improving.
The UK housing market is driven by sentiment and as with the boom years, as soon as people see property as a sure bet it is a sure thing that property prices will rise. It might not be a steady curve but it will be an upward curve in time.

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February 12, 2010

Better yields for property investors but the rate of property price growth slows

Filed under: Commercial, Commercial property, Commercial property surveyors, Finance, House Prices, Letting Agents, Property Auctions, Property Development, Property Investors, Property development funding, UK landlords — Tags: Property investors see rental property yields tighten — Richard @ 9:38 pm

Some early data released has shown that the growth in UK property prices is still on the increase but the rate of growth has slowed. If these first figures are to be believed many professionals in the property sector will be sighing a breath of relief. No one knows more that unsustainable property price growth can damage both the market and their careers than property professionals. Many in the industry did enjoy the good times during the boom years but have been forced to cut their cloth as market conditions have tightened.

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