Don’t let the media talk you into recession!

In the September 2008 edition of “911 & Porsche World” magazine, Henry Firman - a Porsche trader based near London - wrote a column about his experience of the credit crunch. He blamed the media for being “hell-bent on taking us into a recession, digging out stories that fall into the ‘look how bad things have got’ camp while, at the same time, ignoring the good news.”
Henry’s business (setup in the mid 90s) doesn’t seem to be affected too badly by the existing economic situation (at least for the moment), as he continues to sell approximately one used Porsche per day.

In order to take advantage of the economic downturn, Henry described how he recently went to Bicester Outlet Shopping Centre one Sunday afternoon, expecting to have the building to himself. On arrival, the place was so busy that it took him ten minutes to find a parking space. And his shopping experience wasn’t what he initially anticipated, given the quantity of people buying expensive labelled clothes. With a note of cynicism, Henry commented: “I didn’t see too many reporters interviewing people at Bicester Shopping Village.”

Henry’s column also described his experience of buying a little place on the South Coast and how he “felt as though he was committing a criminal act, given current media sentiment.” Given the ‘credit crunch’, Henry assumed he wouldn’t be able to get a mortgage for his new flat. However, he was pleasantly surprised to obtain a better deal through a high-street lender than the one he currently has on his main residence, which he “got after much hunting around several years ago?” Henry noted: “Yet, the media reports that banks have run out of cash”.

Through Chez-Vous HomeSearch we continue to meet mortgage brokers who are still able to provide a variety of competitive products. They have recently seen notable signs of an improvement in the mortgage market, something that has been overlooked as bad news travels quicker than good news. The most obvious sign is an improvement in rates, several top lenders having cut them twice in the past month or so.

As a successful sports car trader, Henry Firman naturally deals with a specific section of the market. But what is certain is that much of the media is obsessively focusing on blanket doom & gloom across the board. Unfortunately negativity sells but it has a spiral effect on people, wrapping them in fear instead of looking for opportunities in these current challenging times.

Laurent Stadelmann
The Property Finder & Relocation Professional

Too busy to hunt for your next home?
Let Chez-Vous HomeSearch remove stress from the relocation process!
Tel: +44 (0) 1189 770215

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Stamp duty threshold raised to £175,000 to help first-time UK home buyers

Buyers of homes worth up to £175,000 are exempt from stamp duty for 12 months.

Announced yesterday by the Chancellor Alistair Darling, this is part of a package of measures designed to revive the UK housing market.

The change, which comes into effect from today, raises the threshold on which 1% stamp duty is paid from its current level of £125,000.

The move will save eligible home-buyers up to £1,750 when they purchase a property, and relates only to buildings entirely for residential use.

Read more on the BBC News website.

Laurent Stadelmann
The Property Finder & Relocation Professional

Too busy to hunt for your next home?
Let Chez-Vous HomeSearch remove stress from the relocation process!
Tel: +44 (0) 1189 770215

PROPERTY FINDING FOR BUYERS / HOME SEARCH FOR TENANTS / CORPORATE RELOCATION SERVICES / PURCHASE PRICE NEGOTIATION SERVICE / LOCATION REPORTS / FREE INFORMATION TO HELP YOU HOUSE HUNT

The South East property market seems to be holding its own

We listen to the media and things look bleak: property prices are sliding; mortgages are more difficult to obtain and more expensive; energy and fuel prices keep on rising, and so on. After so many years of growth in the UK, times have become harder.

However, the property market in the South East appears to be holding its own, at least at the moment. I meet many propertyprofessionals during the course of running my home search business - estate agents, mortgage brokers, solicitors, surveyors, to name a few. Following quieter times during the last few months, several of these tell me that they are now very busy, with the number of property transactions in the Thames Valley apparently on the increase.

For example, a local estate agent told me last week that her experience with the house sales market is looking brighter. Although homes are now achieving from 5% to 10% less than they would have at the peak of last year’s market, sales were 20% higher in May compared to April. And buyer enquiries have increased in a similar pattern over the last few weeks. Some surveyors in the region, who were struggling for business at the beginning of the year, are now overwhelmed with work.

However, there are some increases that are not so good. Cases of gazundering are also on the rise as some buyers try to take advantage of market conditions. (See my blog - Is gazundering ever justified?).

The message that is repeated time and time again by any property professional is that the best quality properties sell! And purchasers are fighting over those. If sellers want to achieve a quick sale at the best price, then they need to make sure that their property is in tip-top condition and meets buyer expectations. Use the services of a good property stylist to maximise opportunities to sell: Chez-Vous HomeStyle specialises in helping sellers achieve this.

While there has been a downward adjustment in house pricing, the Thames Valley is very popular and therefore, still expensive. The Financial Times recently reported that “Surrey, Buckinghamshire, Hampshire and Berkshire are now among the top 35 most expensive property areas in the world”. Given such circumstances, it becomes even more important for buyers to use the services of a property search agent who will identify over-priced properties and will help their clients to negotiate the right purchase price.

In these more challenging times, clients of Chez-Vous HomeSearch appreciate our expert advice, independence and local property market knowledge. Not only do we save them time and stress on the search for the right property, they can also benefit from financial savings with effective purchase price negotiation, which is when our services become particularly cost-effective.

Laurent Stadelmann
The Property Finder & Relocation Professional

Too busy to hunt for your next home?
Let Chez-Vous HomeSearch remove stress from the property process!
Tel: +44 (0) 1189 770215

PROPERTY FINDING FOR BUYERS / HOME SEARCH FOR TENANTS / CORPORATE RELOCATION SERVICES / PURCHASE PRICE NEGOTIATION SERVICE / LOCATION REPORTS / FREE INFORMATION TO HELP YOU HOUSE HUNT

Do you want to rent the oldest, smallest and prettiest council house in Britain?

It is available to rent for £75 a week in Rayleigh, Essex. However, the tenant must agree to open this tiny 17th-century thatched Dutch Cottage to the public one day a week.
It has one bedroom, a living room with a kitchen and a small bathroom.

It is administered by a trust through Rochford Council, Essex. There is one day left to apply.

Watch a video or read more.

Laurent Stadelmann
The Property Finder & Relocation Professional

Too busy to hunt for your next home?
Let Chez-Vous HomeSearch remove stress from the property process!
Tel: +44 (0) 1189 770215

PROPERTY FINDING FOR BUYERS / HOME SEARCH FOR TENANTS / CORPORATE RELOCATION SERVICES / PURCHASE PRICE NEGOTIATION SERVICE / LOCATION REPORTS / FREE INFORMATION TO HELP YOU HOUSE HUNT

Bank of England keeps interest rates at 5%

The Bank of England’s Monetary Policy Committee (MPC) decided yesterday (10 July 2008) to keep interest rates on hold at 5% in order to balance growing evidence of an economic slowdown against the problem of rising inflation.

Graeme Leach, chief economist at the Institute of Directors, said: "If the MPC reduces interest rates, it risks losing control of inflation. Conversely, if it increases interest rates it risks losing control of growth and could trigger a recession."

The MPC’s decision caused a lot of reactions. Amongst them, Ray Boulger, mortgage adviser from John Charcol, said: "With the economic news from nearly all sectors of the economy getting worse by the day, a rate cut is badly needed to help restore some confidence to consumers and reduce the financial pressure on both them and industry."

In April 2008 the MPC cut the base rate of interest by 0.25% - down from 5.25% to 5%. This followed a similar cut, from 5.5% to 5.25%, in February 2008.
Many experts expect interest rates to remain at 5% for the rest of the year.

Laurent Stadelmann
The Property Finder & Relocation Professional

Too busy to hunt for your next home?
Let Chez-Vous HomeSearch remove stress from the property process!
Tel: +44 (0) 1189 770215

PROPERTY FINDING FOR BUYERS / HOME SEARCH FOR TENANTS / CORPORATE RELOCATION SERVICES / PURCHASE PRICE NEGOTIATION SERVICE / LOCATION REPORTS / FREE INFORMATION TO HELP YOU HOUSE HUNT

More time to search for property

A chain of estate agents in Berkshire has decided to make available sales personnel to answer enquiries until 10pm from Monday to Friday.

According to the company, customer feedback and activity levels on its website have led to the decision to longer opening hours. Its research highlighted that more people do their property searching from home between 7pm and 10pm weekdays than any other time. This is not surprising given that potential buyers are busy doing their own work during conventional office hours, with companies getting strict on internet access for personal reasons. And, of course, if you spot a property of interest outside of agents’ traditional opening times, you would usually have to wait until the next day to ask for information, make an appointment or even an offer.

It is also likely that this estate agent seeks to gain some competitive advantage in a much more challenging property market. It will be interesting to see how many other estate agents will follow suit.

As a professional property finder and relocation services business, longer estate agent opening hours mean that, where time is of the essence, we will be able to act for our busy clients - sourcing the fine detail on shortlisted properties, organising viewings, negotiating the best price - the same day. This greater flexibility will be advantageous for both our UK and overseas clients.

Laurent Stadelmann
The Property Finder & Adviser

Too busy to hunt for your next home?
Let Chez-Vous HomeSearch remove stress from the property process!
Tel: +44 (0) 1189 770215

PROPERTY FINDING FOR BUYERS / HOME SEARCH FOR TENANTS / CORPORATE RELOCATION SERVICES / PURCHASE PRICE NEGOTIATION SERVICE / LOCATION REPORTS / FREE INFORMATION TO HELP YOU HOUSE HUNT

The 20 best places in Britain to buy a property

Estate agent Knight Frank has conducted some research for The Sunday Times to identify the 20 most recession-proof towns in Britain.

By taking in account factors such as affordability, wages, employment growth, population growth, qualifications and employment rate, Knight Frank’s top 20 “fail-safe” investment towns in Britain are:

1. Cambridge
2. York
3. Oxford
4. Milton Keynes
5. Guilford
6. Reading
7. Edinburgh
8. Bristol
9. Bath
10. Crawley
11. Worthing
12. Southampton
13. Brighton
14. Chester
15. Bournemouth
16. Portsmouth
17. Swindon
18. Telford
19. Norwich
20. Warrington

Laurent Stadelmann
Managing Director - Chez-Vous HomeSearch

Property doom and gloom for 2008 or just media hype?

Last week (9 January 2008), the "Tonight" team broadcast on ITV a program called "Britain’s biggest house price falls", which portrayed a negative picture for the property market this year!
The reporter interviewed people who prefer to rent instead of owning a property since they believe they are better off financially and will wait for the housing market to head downwards. As I highlighted in a previous blog “To buy or not to buy?” this scenario occurs frequently in property market conditions where people expect a collapse. But this is a very risky and, in my opinion, foolhardy strategy. I am a firm believer in never stepping off that property ownership ladder!

The “Tonight” program also interviewed vendors who have had to reduce the price of their property in order to sell. Of course, there are always properties that are difficult to sell, for a variety of reasons. The program was keen to highlight the significant decreases in price and while these properties had probably genuinely suffered from a slowdown in their local market, I am concerned that other possible factors were not mentioned in the interest of a balanced view. For example, did the properties have any issues that were putting off potential buyers or were there external factors such as noisy roads, polluting factories, flood risk, etc.? The reporter mainly focused on interviewing the vendors but did not ask for the opinion of third parties (i.e. property experts) to give views on why these specific properties were not being snapped up.

It is true that it is taking longer to sell some properties, especially when vendors overvalue them. But the way the press has portrayed the property market negatively over the last few months has also had an influence on buyers’ and sellers' strategies. People are more cautious. For instance buyers spend more time researching and they view many properties to ensure that the one they choose will tick most of their boxes.

The TV program did not discuss alternative reasons why some properties stay longer on the market and it could have expanded on factors influencing buyers’ behaviour, such as the increased cost of borrowing.

During the last few years, regular Bank of England (BoE) interest rate increases (even though interest rates are still low) have not helped people with variable-rate mortgages. And the incredible increase in the upfront arrangement fees charged by lenders has made mortgages more expensive. Banks and building societies hide the ‘true' cost of mortgages by promoting eye-catching rates with huge fees attached. It is not unusual to find four-figure fees attached to very competitive interest rates.

Furthermore, after the Northern Rock fiasco, some lenders withdrew, re-priced and re-launched their tracker mortgages with new higher annual interest rates.

Feeling the pain of increased monthly outgoings (higher interest rates, arrangement fees, household bills, etc.), together with tighter lending criteria, some homeowners have been thinking twice before deciding to purchase another property.

However, on a positive note the BoE has already cut its interest rate from 5.75% to 5.5% in December and many experts are predicting further interest rate cuts this year.
And, in certain areas of the country, if the property market slows down considerably then first-time buyers will be able to benefit from it. David Stubbs, senior economist from the Royal Institute of Chartered Surveyors (RICS), said: “Significantly, the combination of stagnating house prices and lower mortgage rates in 2008 should boost affordability for the first time since 2001.”

So will 2008 be as property doom-laden that we are being led to believe? We have to remember that the media does not always give us the bigger picture. We have to look beyond the news stories rather than taking them at face value. It is not always quite as bad the press is making it to be. The UK media tends to focus on negativity because it attracts attention and sells newspapers and magazines.

Certainly, Chez-Vous Property Services is seeing that clients continue to be confident in purchasing property. As we always recommend, carry out thorough research to find the right property, in the right location and at the right price. And the same applies to finding the right mortgage – research, get good advice and make sure that you don’t overstretch yourself financially. While the property market may not rise as much in the foreseeable future as it has over the last few years (up 60% over the last five years!), in the long term property values always increase.

Laurent Stadelmann
Managing Director

Chez-Vous HomeSearch
Removing stress from the property process!

Property Finder / Relocation Services / Negotiation Service / Location Reports

laurent@chez-vous.biz
www.chez-vous.biz
Tel: +44 (0) 1189 770215

2007 UK property market review

It is hard to believe that the year is drawing to a close.

2007 saw the introduction of some new schemes in property, such as Tenancy Deposit Protection (TDP) and Home Information Packs (HIPs).

Millions of homeowners were given a welcome early Christmas present by the Bank of England when it cut its interest rate from 5.75% to 5.5% in December - the first time it had cut rates for over two years.

The question on everyone’s lips now is: are we heading towards a property crash? Nobody can predict the future, but I doubt this will happen. As I highlighted in a previous blog “To buy or not to buy?” inflation and unemployment remain low. During the next few years we may not see the property market rise as much as we have experienced over the last few years (up 60% over the last five years), but in the long term property values always increase. For 2008, Halifax predicts a house-price growth rate of 0 percent.

I’ve prepared a short reminder of key property events in 2007, which affected or will affect most of us.

I hope that you had a very special Christmas and I wish you a prosperous 2008!

Best wishes
Laurent


January 2007
Bank of England raises the bank rate by 0.25 percent to 5.25%.

February 2007
Advertising campaign by HM Revenue & Customs (HMRC) advises landlords, who let a room in their home or run a rental business, of the need to declare their earnings and pay tax on any profit.

March 2007
The average property asking price in London is now £366,302, the first time prices have broken through the £360,000 barrier and a new record.

April 2007
- Tenancy Deposit Protection law introduced to provide protection for tenants by preventing landlords and letting agents from unfairly withholding a deposit. The scheme protects all Assured Shorthold Tenancies (ASTs) in England and Wales (for rent up to £25,000 per annum).

- According to Halifax House Price Index, there are now no towns in the UK where the average price is below £100,000. Five years ago, there were more than 200 towns with an average price below £100,000.

May 2007
Bank of England raises bank rate by 0.25 percent to 5.5%.

June 2007
Thousands of properties hit by floods in England and Wales.

July 2007
- Bank of England raises bank rate by 0.25 percent to 5.75%.

- The government increases its annual house-building target from 200,000 a year to 240,000 a year by 2016 in an attempt to tackle the country's affordable housing crisis.

August 2007
- Introduction of Home Information Packs (HIPs) for sales of homes with four or more bedrooms.

- Northern Rock fiasco; most lenders have tightened their lending criteria since the crisis.

September 2007
HIPs introduced for sales of homes with three or more bedrooms.

October 2007
Tenant demand in the private rented sector remains at the highest levels seen for five years. This has led to an increase in rents achieved, according to survey of member letting agents, published by the Association of Residential Letting Agents (ARLA).

November 2007
- Statistics from the National House-Building Council (NHBC) show that the principal housing type being started in England, Wales and Northern Ireland are flats and maisonettes.

- Halifax House Price Index reports that house prices in the UK fell by 1.1% in November. In annual terms, house prices are 6.3% higher than a year ago. The average house price is now put at £194,895.

December 2007
- Bank of England reduces bank rate by 0.25 percent to 5.5%.

- Extension of HIPs to all properties being sold in England and Wales.


Laurent Stadelmann
Managing Director

Chez-Vous HomeSearch
Removing stress from the property process!

Property Finder / Relocation Services / Negotiation Service / Location Reports

laurent@chez-vous.biz
www.chez-vous.biz
Tel: +44 (0) 1189 770215

To buy or not to buy?

People regularly ask me what the property market is like at the moment. There is much uncertainty about whether to buy now or wait, anticipating a property crash!

Figures from property market analysts can be confusing as they are sometimes contradictory. Take the latest figures for October 2007. Halifax said that house prices fell by 0.5%; according to Hometrack they fell by 0.1 %; and Nationwide reported prices increasing by 1.1%. So who do you believe? Are their figures representing the same properties in the same areas? Probably not.

What is certain is that property market activities are not as buoyant as they used to be. For example, enquiries from new buyers and mortgage approvals (some lenders are tightening their criteria) have fallen compared to the beginning of the year or this time last year. I know of a few property surveyors who are experiencing a considerable drop in clients at the lower end of the market. There are buyers who have withdrawn from searching for property, and are considering whether it is the right time to move or invest.

So are we heading towards a property crash? Nobody can predict the future, but I am convinced this will not happen. Inflation and unemployment remain low and some financial experts are even predicting a potential cut of the Bank of England interest rate (currently 5.75%) by the end of 2008. During the next few years we may not see the property market rise as much as we have experienced over the last few years (up 60% over the last five years), but in the long term property values always increase. As I highlighted in a previous blog “The path to successful property investment”, historically property in the UK has doubled in value every seven to nine years. Furthermore the UK doesn’t have enough properties to satisfy the market demand.

In property market conditions where people expect a collapse there is a tendency to sell and then hold-off buying in the hope of purchasing more cheaply later on. I saw quite a few cases of this in the early “naughties”. The risk comes where the market fall is insignificant, temporary or localised. If you wait too long and the market continues to rise, it effectively prices you lower down the property ladder or in some cases, out of the market. I am a firm believer in never stepping off that property ladder!

Laurent Stadelmann
Managing Director

Chez-Vous HomeSearch
Removing stress from the property process!

Property Finder / Relocation Services / Negotiation Service / Location Reports

laurent@chez-vous.biz
www.chez-vous.biz
Tel: +44 (0) 1189 770215