Libor fines awarded to military charities

A total of £35m has now been distributed to armed forces charities

The latest tranche of money gathered from UK banks in Libor fines has been allocated to 24 military charities.The £12m instalment will be used to fund projects including housing and mental health support schemes for military veterans.

It means a total of £35m has now been distributed to 96 charities from fines imposed on the banking industry for rigging the benchmark interest rate.

During the Autumn Statement a further £100m was made available. Chancellor George Osborne said of the latest instalment: “It is right that money paid in fines by people who demonstrated the worst of the values in our society is now being used to help and support those who demonstrate the very best.”

The biggest donation, of more than £2.5m, will go to Veterans First Point – a charity staffed by military veterans – to establish a number of mental health support centres in Scotland.

‘Debt of gratitude’
Houses for Heroes Scotland has been awarded £1.9m to build low-rent houses for wounded forces personnel and their families.

Welsh charity Change Step will receive nearly £1m to develop and fund a support network for veterans for the next two years.

And homeless veterans in Wales will be provided with resettlement and employment opportunities by Alabare Christian Care, which was awarded £976, 269.

In Liverpool, AF&V Launchpad was awarded £907,632 to provide accommodation to veterans and help them secure work.

Elsewhere, Defence Medical Welfare Service will use nearly £900,000 to provide forces personnel across the UK with additional hospital welfare and psychosocial support.

The Royal Navy Service Family Accommodation will use £800,000 to fund upgrades to 15 play parks across Royal Navy estates and Combat Stress will use £575,268 to provide a 24-hour helpline for veterans.

During the Autumn Statement, the chancellor announced that a further £100m distribution of Libor fines would “reflect our society’s debt of gratitude to our servicemen and women, and their families” and would be extended to those who “care for the work of our police, fire and ambulance services”.

Improvement predicted for mortgage market in 2014

The housing and mortgage markets are set to continue to show greater levels of activity in 2014, according to the latest forecasts from the Council of Mortgage Lenders.

However, the CML sees an unbridled housing boom as unlikely. Indeed, given the already stretched nature of household finances, the new regulatory environment and the likely future course of interest rates, housing market activity may well ease back of its own accord.

The CML is forecasting a rise in gross lending from an estimated £170 billion this year to £195 billion next year, and £206 billion in 2015. The CML anticipates that net advances are likely to rise from £10 billion this year to £15 billion next year and £20 billion in 2015.

The CML anticipates that the number of mortgages 2.5% or more in arrears is likely to stay stable next year at around 150,000, but rise modestly to 160,000 in 2015. The number of repossessions is expected to fall from around 30,000 this year to 28,000 next year before returning to 30,000 in 2015.

In terms of specific features currently influencing the mortgage market, the CML suggests that the volumes of business written under the new Help to Buy mortgage guarantee scheme may be relatively modest, “such that it has a smaller but more positive market impact than many commentators suggest”.

The CML’s forecasting horizon covers a period when the Bank of England may consider increasing interest rates. While this is likely to have a greater impact from 2016, the benign period of falling arrears and possessions may be coming to an end – although most households will cope with the transition to more normal interest rates.

CML chief economist Bob Pannell concludes: “Gross mortgage lending climbs above £190 billion next year, its highest level since 2008. While this is largely on the back of the continuing revival in housing market activity, we also expect to see a meaningful turn-round in re-mortgage activity.

“Despite a strong pick-up in gross mortgage lending, we have pencilled in relatively modest net lending figures – £15 billion in 2014 and £20 billion in 2015. While this would mark a climb out of the sub-£10 billion doldrums, where the market has languished since the credit crunch, it does nevertheless represent a rather muted position. This reflects, among other things, our view that some households will use the relatively benign economic conditions to prioritise debt repayments, ahead of medium-term interest rate rises.

“We think there are good grounds to be optimistic that the vast majority of households will cope with a slow but certain transition to more normal interest rates. This seems to be the game-plan which the Bank of England has in mind, but presumes (as we do) that the UK avoids a destabilising housing boom over the next few years.”

Lending for house purchase reaches a six year peak

The Council of Mortgage Lenders (CML) found that September saw an Increase by a significant 34 per cent in first-time buyer lending, with 23,600 taking out home loans, compared to the same month last year and despite a decline of 12 per cent from August.

The typical first-time buyer income multiple continued an upward trend as they typically borrowed 3.39 times their gross income. Despite this, the continued downward drift in mortgage interest rates have kept borrowers’ payment burden low.

Overall the usual seasonal dip seen in mortgage lending in September was no different this year but was up by 20 per cent compared to the same month last year, with lending in the third quarter at its highest since 2007.

There were 52,800 loans for home owner house purchase in September with a total value of £8.4 billion, down by 14 per cent on August. Overall in the third quarter of 2013, there were 170,700 house purchase loans advanced, worth a total of £27.1bn, which is the highest quarterly figure since the fourth quarter of 2007.

Loans advanced to home movers totalled 29,100 in September, which was down in volume by 16 per cent compared to August but up by 11 per cent compared to September last year. Home mover loans totalled £5.2bn in value in September, which was down 13 per cent on August but up 18 per cent compared to last year.

Home-owner remortgaging showed strong growth in September with a total of 32,900 remortgage loans advanced in the period, up 20 per cent compared to August and 36 per cent on September last year. This totalled £4.7bn in value, an increase of 24 per cent on August and 47 per cent in value compared to September 2012.

Buy-to-let lending in the third quarter of 2013 grew with 43,900 loans advanced in this quarter which was up 16 per cent on the second quarter of 2012 and 36% compared to last year. These loans were worth £5.7bn which was up 19% on the previous quarter and 43% up compared to the same period last year.
Director general of the CML Mr Paul Smee, was quoted saying,: “First-time buyers were a key driver in the first half of 2013 but now home movers and remortgages are showing renewed strength which puts the market in a good position to continue momentum into the final few months of 2013 and the New Year.”
Managing director of Phoebus Software Mr Paul Hunt had said,: “By almost any measure you use, it’s clear that lending levels improved drastically in the last few months. The mortgage industry has found a way to sustainability and significantly boost activity in the property market.

“There are many new signs of life: house purchase lending is up by a fifth compared to a year ago and first-time buyer activity has jumped significantly. Lenders have been proactive in their approach to lending and their innovative steps to improve mortgage availability have heated up the mortgage market. Some of the roadblocks are being knocked off the pathway for prospective buyers, and the number of mortgage deals on the market has increased rapidly. As the Help to Buy scheme gains momentum it should kick-start the housing market from the bottom tier. Without doubt, the mortgage market is taking steps towards fertile grounds.”

Are you thinking of Buying or selling, call us now on 0300 11 11 239 or email info@afvestates.co.uk download our Home Sellers Guide here. (HSG) look out for our other guides coming soon.

Do you understand the Help to Buy Mortgage Guarantee scheme?

According to an independent survey commissioned by the Building societies Association BSA Consumers who are looking to purchase their first home or move house are confused by the mortgage guarantee element of the government’s Help to Buy scheme.

The BSA survey suggests, 43 per cent of those actively looking to buy a residential property are confused about the benefits on offer through the scheme.

In addition, 31 per cent of consumers who are looking to buy or move admit they do not know whether there is a difference between a 95 per cent mortgage offered by a lender which has signed up to the scheme and a 95 per cent mortgage from a lender which hasn’t.


Results from the survey show that:

• 18 per cent of first time buyers and 17 per cent of home movers believe that they can borrow more through this scheme than with a ‘standard’ 95 per cent loan.


• 12 per cent of both first time buyers and home movers believe that their monthly repayments will be lower as a result of taking a Help to Buy: mortgage guarantee loan.
• One in ten first time buyers (just 5 per cent of home movers) believe that the scheme will protect them if they cannot keep up their monthly payments.


• 12 per cent of first time buyers (just 6 per cent of home movers) say that Help to Buy: mortgage guarantee will protect them if their house price falls.


• 24 per cent of first time buyers and 22 per cent of home movers say that they are more likely to be approved for a Help to Buy mortgage.

In fact not one of these suppositions is true. The Help to Buy: Mortgage Guarantee Scheme has been designed to encourage more lenders to lend to borrowers with small deposits, increasing the availability of this type of loan. The mortgage that an individual consumer receives and the approval process they go through, are subject to the same lending rules whether a mortgage is inside the Help to Buy scheme or not. When considering the affordability of the Help to buy: mortgage guarantee loan, until the new FCA rules related to the Mortgage Market Review come into force in April 2014 borrowers may well be subject to stricter requirements then they would be otherwise.

The introduction of and the publicity surrounding the two Help to Buy schemes has had a positive effect on consumer confidence and is likely to increase the overall volume of higher loan to value ratio lending, as some banks get back into this market. Some lenders, particularly many building societies, have consistently offered loans requiring deposits of five or 10 per cent and continue to do so outside the Help to Buy Scheme. Borrowers may find that they have a wider choice than they expected when shopping around for a low deposit loan.

Paul Broadhead, BSA head of mortgage policy was quoted as saying: “It is unsurprising that some consumers are finding the Help to Buy: Mortgage Guarantee Scheme difficult to get their heads round. The situation has been complicated by the launch of two very different schemes both called Help to Buy.
“It is essential that providers offering loans under the scheme leave applicants in no doubt about the terms of their mortgage loan. I am particularly concerned that a reasonable minority of active first time buyers believe that they can borrow more than normal and that they are in some way protected – neither assumption is true. In fact a 95 per cent mortgage through Help to Buy: mortgage guarantee is exactly the same as a standard 95 per cent mortgage. It is vital that these myths are dispelled at application to prevent the possibility of consumers misunderstanding their mortgage loan and later feeling misled.”

Call us now on 0300 11 11 239 and speak to one of our advisors who can answer these and other Property related or you can email us at info@afvestates.co.uk

Top tips to a secure property this winter

Although aimed at tenants this advice can also help home owners. We are all reminded to be vigilant with security as the dark nights get longer to avoid burglaries to our homes.

President of the Association of Residential Letting Agents (ARLA), Susan Fitz-Gibbon, was quoted saying: “Many responsibilities for the security of a property are divided between a landlord and tenant, and it is important that renters know which elements they should look out for during a tenancy. While crime rates vary across the country and within cities and towns, it is always sensible to take precautions to reduce risks to you and your possessions.

“With regard to financial risk, tenants can often undervalue the cost of their possessions and this issue can be particularly acute in shared accommodation. Should the worst happen, the blow of a burglary can be reduced by having adequate insurance in place and copies of receipts for expensive items.”

ARLA has the following security advice for tenants:

Protect your contents:
While the landlord will be responsible for ensuring they have buildings insurance, it is the tenant’s responsibility to insure their own personal possessions. Many insurance companies will offer specific ‘sharer’ packages for those living in larger homes – and always remember that your possessions may be worth more than you think.

Ask the right questions:
If you have any concerns about the local area, ask the agent if the property has any history of burglaries. Under the new consumer protection regulations, agents are now obliged to disclose information that could affect your transactional decision. If you do wish to request additional security, such as a chain on the front door, make sure any changes are agreed in writing before signing the tenancy agreement.

Arm the alarm:
If your rental property has an alarm, familiarise yourself with how it works and make sure you are provided with a new pass-code by the landlord or agent. If the system relies on sensors around the home, remember to check the batteries on a regular basis. Remember that some contents insurance policies will only pay out if your alarm was enabled at the time of the burglary.

Mind that letterbox:
It’s not the most innovative tactic but thieves still employ letterbox theft to obtain car or house keys. Poles are often used to hook keys from hallway entrances, so keep valuables well away from the front door.

A problem shared:
If you are living in shared accommodation, be sure that all renters are responsible when shutting the front door. There is no easier target for opportunist thieves than an unlocked front door or one left with the lock on the nib. Your landlord or managing agent should provide you with keys for all locks on external doors, and be sure to request them if they are not made available to you when moving in.



More indepth advice is availabe from the Met Poloice via their web pages found here:
Operation Bumblebee Crime Prevention

Help to Buy: mortgage guarantee available 3 months early

Help to Buy: mortgage guarantee scheme to launch this week.

A scheme to help thousands of people buy their own home will be launched next week – three months earlier than planned.

The scheme was due to start in January 2014 but the government has announced that people will be able to start applying for the new mortgage guarantee from next week.

Several high street banks will be offering the new Help to Buy mortgages to customers, ranging from 80 to 95 per cent of the property’s value.

The mortgages – backed by the government – will help thousands of people buy new or existing homes up to a maximum value of £600,000.

It is aimed at people who cannot get on the property ladder – or move to a new home – because they cannot afford the large deposit required, often up to 20 per cent.

Under the new mortgage guarantee scheme, the buyer would only need a 5 per cent deposit.
The government and the bank then jointly guarantees up to the next 15 per cent of the property’s value, in return for a fee paid for by the lender.

To be able to offer the guarantees ahead of schedule, the government will be allowing lenders to start writing loans that will become part of the scheme once it opens in January.

Because lenders know that they will be able to purchase a guarantee on these loans when the scheme opens in January, it means that they are able to offer high loan to value mortgages, much sooner.
Only repayment mortgages will be offered under the scheme.

There will be tough checks to make sure buyers can afford their mortgage payments and the borrowers income will be verified.

The scheme will not include interest-only or self-certified mortgages.

The new mortgages will not be available to people with a history of difficulties making debt repayments.

Official statistics show that mortgage lending is around half the level it was before the economic crisis, even though mortgage rates are at their lowest for five years.

Announced by the Chancellor at Budget 2013, the Help to Buy scheme has two parts, equity loan and mortgage guarantee.

Under the equity loan scheme, the government provides a loan of up to 20% of the value of a new build home, interest free for the first five years.

The Help to Buy: mortgage guarantee scheme will be available for three years up to January 2017. Every September the government and the Bank of England Financial Policy Committee will review the impact of the scheme and examine whether the fees or the price cap should be adjusted. If any future government proposed to extend the scheme beyond its three year life the FPC would need to agree.

Link to .gov information here

Armed forces offered interest-free home loans

This week the government announces that is to offer armed forces personnel buying their first homes interest free loans towards a deposit. Read their release (here).

Defence Secretary Philip Hammond announced that service men and women will be able to borrow an interest free amount of up to 50% of their salary to a limit of £25,000.

The loan is repayable over 10 years and is designed to address the low rate of home ownership among the forces.

The scheme will start on 1 April 2014 and covers a three-year period.

Register with AF&V Estates (Here) today and let us help you achieve your property goals.

It comes a day after Chancellor George Osborne asked the Bank of England to take bigger role in ensuring the government’s Help to Buy scheme does not fuel a property boom.

‘Set down roots’
Armed forces personnel have lower levels of home ownership than the general population and those who leave often cite the desire to own a home as one of the key reasons why they leave, the Ministry of Defence (MoD) said.

And the MoD said armed forces staff often experience difficulty getting credit because of frequent moves and deployments.

Mr Hammond said of the £200m scheme in a statement: “Service personnel can struggle to enter the housing market as they move around throughout their military career. By giving our troops this extra help they will be more able to set down roots and get onto the property ladder.

“The introduction of this new scheme will help increase home ownership, and provide our armed forces with sustainable lifestyle choices.

“It further demonstrates the government’s commitment to strengthen the Armed Forces Covenant, ensuring that personnel and their families are not disadvantaged by their service.”

How does this affect you? Let us take the haste out of finding and buying your Home.

Call us now for more information. 0300 11 11 239.

Armed Forces and Veterans Estates Agency Ltd becomes an approved trader with the Consumer Code Approval Scheme

Members of The Property Ombudsman scheme celebrate their Sales Code approval with the Trading Standards Institute.
As a member of the UK’s largest property ombudsman scheme, Armed Forces and Veterans Estates Agency Ltd is one of 11,745 residential sales agents that have signed up to TPO’s Sales Code of Practice.

The Property Ombudsman (TPO) has now become the first property organisation to have a Code of Practice approved by The Trading Standard Institute (TSI) under their Consumer Code Approval Scheme.

More than 95 percent of the residential sales market is signed up to TPO’s Sales Code of Practice and redress service, which is a free, independent and impartial dispute resolution service for consumers.
This news means all home owners and buyers using any of Armed Forces and Veterans Estates offices across the UK are all covered by TPO’s Sales Code of Practice.

Armed Forces and Veterans Estates agency is now listed on TSI’s online directory of approved traders. Consumers will be able to look for TPO sales agents through TSI’s dedicated database on www.tradingstandards.gov.uk and through the Citizens Advice Bureau’s website, to find a member of an approved code in their area.

TPO sales agents will now be able to display the TSI Approved Code logo in their advertising, branches and within company literature[i].

Confirming the news, Property Ombudsman Christopher Hamer said: “I am delighted that TPO has become the largest organisation to win approval from TSI for its Consumer Code Approval Scheme. The TPO Code is a recognised set of standards throughout the industry but it is important that it is also seen as being independently approved by a credible organisation. “With the OFT’s withdrawal from the code approval process it is good news that TSI have stepped in to fulfil the important role of rigorous examination and approval for consumer-focussed codes.” Mr Hamer added: “This news means that agents who are members of TPO actively offer the highest level of consumer protection for buyers and sellers. We are in active discussions with TSI to achieve scheme approval for the Lettings Code of Practice.”

Armed Forces and Veterans Estates

Delivering a better deal for our Armed Forces & Veterans

Citizens Advice Chief Executive Gillian Guy said: “We deal with over a million consumer problems each year and know how difficult it is for people to find a seller they can trust, the Approved Trader Scheme will help to combat this.”

TPO is among the first trade bodies sponsoring the new code and has also become the largest organisation to be accredited by the scheme since it replaced the Office of Fair Trading’s scheme earlier this year. There are now with 26,530 approved traders signed up to one of the ten codes of practice.

TPO joins: British Association of Removers, British Healthcare Trades Association, Debt Managers Standards Association, Institute of Professional Will Writers, Motor Codes Ltd, Renewable Energy Assurance Ltd, Robert Bosch Ltd, The Carpet Foundation and Vehicle Builders Repairers Association Ltd.
A downloadable PDF of the copy abaove is available here

ENDS

Notes for the reader

Trading Standards Institute (TSI) TSI is a training and membership organisation that has represented the interests of the Trading Standards profession since 1881 nationally and internationally. It aims to raise the profile of the profession while working towards fairer, better informed and safer consumer and business communities.

TSI’s members are engaged in delivering frontline trading standards services in local authorities and in businesses.

The Trading Standards Institute also hosts the UK European Consumer Centre (UK ECC) which provides consumer advice with regards to cross border disputes within the EU and also the European Consumer Centre Service (ECCS).

What is The Property Ombudsman (TPO)?
The Property Ombudsman scheme has been offering a free, independent and impartial dispute resolution service to consumers who are dissatisfied with the service provided by registered firms since 1990. The Ombudsman can provide redress to place the consumer back in the position they occupied before the complaint arose to achieve a full and final settlement of the dispute and all claims made by either party. Where appropriate, the Ombudsman can make compensatory awards in individual cases up to a maximum of £25,000 for actual and quantifiable loss and / or for aggravation, distress and inconvenience caused by the actions of a registered firm.

The Property Ombudsman currently provides redress for consumers using 25,500 offices in the UK (inc. 11,745 residential sales estate agency branches and 10,391 residential lettings offices).

Independence
Whilst TPO charges registered firms an annual subscription, the Ombudsman is accountable to the TPO Council, the majority of which is made up of non-industry members. The Council appoints the Ombudsman and sets his Terms of Reference (i.e. how the complaint process operates). The Ombudsman is required to report to the Council on a regular basis.

The Ombudsman is not a regulator and does not have the authority to take regulatory or legal action against a registered firm. However, member firms can be referred to the TPO Disciplinary and Standards Committee, appointed by the Council, which has the power to expel firms from the scheme and / or report them to the Office of Fair Trading, which has the ability to ban firms from carrying out estate agency business.

Further information
The Ombudsman’s Terms of Reference, the Codes of Practice, Consumer Guides and other documents about the operation of the scheme are available on our website (www.tpos.co.uk), together with previous annual and interim reports, further explanation of governance arrangements and a full list of registered firms.

For press information, please contact:
Gemma Stacey
Press & Communications Manager
The Property Ombudsman Limited
M: 07415 684548
E: gemma.stacey@tpos.co.uk
Twitter: https://twitter.com/TPOmb
For more information about TPO, please visit our website at www.tpos.co.uk

[i] Use of the TSI approved logo is strictly limited to TPO Sales Agents only and subject to specific conditions detailed on the TPO website. TPO will be issuing full guidance to individual agents as to the conditions of display of the TSI logo and will be producing new window stickers this month.

Stamping Out ‘Stamp Duty campaign’

The ‘Stamp Out Stamp Duty campaign’ highlights that a quarter of home buyers are stung with a stamp duty bill for £7,500 or more.

Current stamp duty thresholds were introduced 10 years ago in 2003 and at the higher end of the scale were increased in last year’s Budget. Not only are they out of date, they do not take into account regional variations in house prices.

While home-buyers in London and the South East are hardest hit, the TPA points out that more people across the country are being hit by stamp duty at the 3 per cent rate, which acts as a barrier both for an increasing number of first-time buyers, as well as many hard-working families wanting to buy a new home.
Families buying a home for between £250,000 and £500,000 pay between £7,500 and £15,000 in stamp duty.

In 2012-13, over £4 billion was paid by home buyers in stamp duty, of which £3.6 billion was paid at a rate of 3 per cent or more. In the same year, 723,829 homes were bought, with more than a quarter (182,692) being liable for stamp duty at a rate of 3 per cent or more.

The campaign website enables people to find out how their area is affected and how they can send a customised message direct to their local MP, urging them to support a cut.

The Stamp Out Stamp Duty campaign is urging the government to ease the burden on homebuyers by cutting this unfair double tax. David Cameron and George Osborne promised to increase the Stamp Duty threshold in 2007. Six years later and three years into power it’s time that they delivered on that promise.

Speaking in October 2007 George Osborne said , “The next Conservative government will abolish stamp duty for almost all first-time buyers. Anyone who buys their first home for under £250,000 will pay no stamp duty. We will take 200,000 people a year out of stamp duty altogether; that’s one million people over a Parliament. And our message to the family working long hours, saving every spare pound to afford their first home is this: Your dream is our dream too. Your aspiration is our aspiration. We will get you out of tax and into your home.”

Chief executive of the TaxPayers’ Alliance Mr Matthew Sinclair, said: “Owning your own home is an important milestone, but for many families it seems harder and harder to reach. Ministers have done nothing to ease the burden imposed by stamp duty, which is an unfair double tax that gets in the way of would-be first-time buyers and others thinking about moving. Instead they have made things worse with new thresholds and new, higher rates. The government needs to act on ministers’ rhetoric about getting people onto the property ladder and cut this unfair tax.”

Parent-guarantor mortgages on the rise for first-time buyers

Remember how you used to be able to get a lone or a mortgage, by having a guarantor, well results from a recent survey suggests that almost one-quarter of all parents planning to help their children buy their first property would act as guarantors for their children in order to get them onto the housing ladder.

The survey was conducted by Family Investments, they found that 24 per cent of parents plan to help their children get onto the housing ladder by acting as guarantor, compared to two-thirds of those who plan to just give their children the money outright.

Earlier research from Lloyds TSB has indicated how the so-called Bank of Mum and Dad is evolving.

It is no longer simply a case of parents chipping in with a cash loan to help their first-time-buyer children – now two-fifths of those taking their second step on the property ladder are turning back to their parents for financial assistance. The Family Investments survey shows that this evolution also includes parents putting the equity in their own homes on the line too, rather than simply handing over the cash.

The report also found that more detailed knowledge of guarantor mortgages was low among the 53 per cent who had heard of them – when asked a series of true or false questions about the characteristics, just under half of respondents were able to correctly identify the right answer every time.

Of the 529 parents who responded, only four noted that they had received support in the form of a guarantor mortgage from their own parents. This is especially significant and highlights the change happening in today’s mortgage market, where first time buyers can only get high LTV mortgages with some form of additional guarantee.

The Family Investments research also highlighted just how important the Bank of Mum and Dad is as a lender in the current climate. Of the non-homeowners questioned over a third are planning to buy and nearly a third of these expect their own parents to help in securing a mortgage.

The head of Savings and Investments at Family Investments, Kate Moore, commented: “It’s obviously becoming increasingly difficult for young adults to get onto the property ladder. As it becomes harder for young people to save enough for a deposit on their first home, parents have to consider other ways of supporting their children into the future.

If you need help and advice on buying your home or looking to invest then take a look at our services, we are set up to support service personnel, call us on 0300 1111 239 and speak to an adviser who can help.

Monthly house sales have increase to 2009 levels

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Positive trends are beginning to emerge in the property market as estate agents have seen monthly house sales increase to levels not seen since 2009.

The latest figures from the National Association of Estate Agents (NAEA) housing market report revealed another monthly increase in the average number of sales made by NAEA members. Average sales increased from nine per branch in April to ten in May. This follows a continued rise from the beginning of the year, where in January the number of sales reported by NAEA members was only seven per branch.

The NAEA also revealed a 12 per cent rise in the average number of house hunters compared with last year’s figures – up from an average of 274 per branch in May 2012 to 313 in May 2013. This is in addition to a month-on-month improvement, up from an average of 310 in April 2013 and 286 in March 2013.

Meanwhile, the average number of first time buyers (FTBs) has dropped from 23 per cent in April to 20 percent in May, which suggests more still needs to be done to help this section of the market. The supply of properties also saw a slight decrease from 61 average properties for sale per branch in April to 60 in May, possibly due to the record sales figures in recent months.

Managing Director of the National Association of Estate Agents Mr Mark Hayward, said: “These really are encouraging figures; serious house hunters are continuing to enter the market and are intent on buying. The current low lending rates have created attractive conditions for those with sizable deposits who are thinking of buying or moving home. The story is reversed for first time buyers though with figures down on last month, suggesting that there are still issues surrounding access to finance for this group.

“We are hopeful that this positive trend will continue, with the sunny weather likely to bring even more house hunters to the market; plus if banks continue to compete on rates and offer increasingly attractive deals, savvy home buyers may find their options in the market increase.”

Shared Ownership what’s it all about…?

There has been much news recently concentrating on promoting shared ownership, we thought it was time that we expelled some myths.

Shared ownership doesn't really mean that you share your house/flat with anyone, what it does mean is that someone is helping you out to be able to buy a property. You can buy as little as 25% of a property or as much as 75% with the Housing Association or a private developer keeping the remaining share of the property and you pay rent to the Association or Developer on the percentage of the property that you don’t own.

The schemes are designed to help young people get on to the property ladder with a 5% deposit rather than the 10% required by most mortgage lenders.
It is thought that there are 170,000 shared ownership properties across the UK and developers are building more every day.

Of course with everything in life there are pros and cons, we have set out the most important ones here:
The Pros:

• Younger house buyers can get on the housing market with a 5% deposit


• You can buy a nicer property than you would have been able to afford


• You are eligible to buy these houses even if you earn quite a lot (capped at £60,000 per annum)

The Cons :

• You are paying both a mortgage and rent


• You can’t sublet the property


• They can be more difficult to sell, as you don’t own the full 100%

For more objective advice why not watch Cherry Healey’s Property Virgins on Mondays at 8pm on BBC3 for a full insight into what the younger generation think about these houses.

http://www.bbc.co.uk/programmes/b036mqvv



There are other ways of getting help with buying a house and the new Government Schemes are those that aren't limited to first time buyers.
 Why not call our team now to find out how we can help you 0300 11 11 239.

Happy house hunting.

Growth in Property Price Reductions

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According to new research from Zoopla.co.uk the average property seller has had to reduce the asking price of their home by nearly £20,000 to secure a sale. Over 40 per cent of all UK properties currently on the market for sale have experienced at least one price reduction, as sellers try to entice buyers.

The amount by which sellers have reduced their price expectations has risen significantly over the past 12 months, with the average property now being discounted by £3,500 more than this time last year. Last November, amongst those homes that had been reduced in price, the average price reduction was 6.1 per cent. Today that figure stands at 7.4 per cent which represents a discount of nearly £3 billion off the initial asking prices as sellers become both more realistic and more desperate to close a sale by the end of the year.

Glasgow tops the list of towns where the biggest discounts are on offer with the average reduction in the city currently standing at 9.1 per cent (£12,881). Newcastle and Bolton follow closely with asking prices currently discounted by an average of 8.9 per cent and 8.8 per cent respectively. All but one of the top ten areas with the highest price reductions are in the North, where the number of sellers reducing their asking price is also the highest. Sunderland tops the list of towns with the highest proportion of properties on the market that have been discounted at least once with more than half (53.6 per cent) of sellers there having to reset their expectations downwards at least once.

Whilst the London property market continues to demonstrate its resilience with the lowest proportion of price-reduced homes in the UK , nearly a third (32.6 per cent) of properties for sale in the capital have had to be reduced in price indicating that London is not entirely immune from the conditions being felt around the rest of the country.

Business development director of Zoopla.co.uk, Mr Nicholas Leeming said, “With the current economic uncertainty and difficulty buyer’s face in finding funding, it is no wonder that sellers are having to reduce prices in order to encourage sales. And with the latest economic forecasts looking decidedly gloomy, sellers may have to reduce their expectations further if they are serious about making a move.”

Homebuyers in UK require three bathrooms?

According to a survey of over 4,000 home buyers by PrimeLocation.com, the number of bathrooms in a prospective property is a significant factor in the decision making process for four out of five home buyers in the UK.

Home buyers want an average ratio of at least two bathrooms for every three bedrooms. And almost one third of those surveyed would rule out a home entirely from their search if it had too few bathrooms.

Amongst those surveyed the average number of bedrooms and bathrooms respectively needed for a property to be considered ‘prime’ was 4.5 bedrooms and 3 bathrooms.

Over 90 per cent of respondents believed that the ratio of bedrooms to bathrooms could not be greater than 2:1 for a property to be considered as ‘prime’ while 37 per cent of prime buyers felt that an en-suite in each bedroom is vital. En-suites ranked higher than almost any other ‘prime’ features including swimming pools, tennis courts and gyms.

Lawrence Hall of Primelocation.com comments: “There is a qualitative difference in the basic features that prime buyers require. The results of our survey show that dozens of bedrooms are not what makes a property prime for most people but instead quality comforts are extremely important for a home to be considered a ‘prime’ property. Extra bathrooms would seem to be one of the most effective investments at the prime end of the market”. Prime buyers are split when it comes to property style with 33 per cent favouring a modern style whilst 43 per cent would prefer a Victorian or Edwardian home. However, prime buyers are united in terms of outdoor space with 66 per cent regarding a large garden as essential for a prime property.

Good neighbours are a highly valued commodity

Anti-social neighbours are the biggest turn-off to prospective home buyers according to a recent survey of over 4,000 home buyers by PrimeLocation.com.

Almost 3 in 5 (57 per cent) of those surveyed listed loud or anti-social neighbours as the most likely reason for being put off a home purchase. Homebuyers in the East and North East of England are most put off by the thought of bad neighbours with 61 per cent of respondents claiming this as the leading detractor from a purchase. Londoner’s seem less fussed with just 52 per cent of potential buyers in the capital stating that noisy neighbours would be a key off-putting factor.

Security ranked very highly as an important factor in a property being considered as ‘prime’ with private gates and security cameras coming in above swimming pools, tennis courts and walk-in wardrobes as must-haves amongst potential buyers of ‘prime’ property.

Lawrence Hall of Primelocation.com, said: “Discerning buyers don’t simply look for a good location but want to live in a good neighbourhood too. The quality of the neighbours and the security of the property are both clearly important factors for ‘prime’ buyers.”

Information source – whatmortgage.co.uk

Byker Community Trust develops homes for veterans: AF&V Launchpad

The BBC Reported earlier this year on sheltered housing on Tyneside that is being converted into specialist accommodation for armed services veterans.

Work has started on 35 homes for ex-servicemen and women in Byker, Newcastle.

The scheme is being developed by the Byker Community Trust and Armed Forces and Veterans Estates.

The trust said 750 veterans were currently looking for a home in the city.

Veterans will be able to live in the properties for up to two years after leaving the forces.

Building work is being funded in part by a £250,000 Armed Forces Community Covenant grant and it is expected the properties will be complete by the summer.

The trust took over management of the Byker estate from social landlord Your Homes Newcastle last year.
Major General David Shaw, director of Armed Forces and Veterans Estates, said the project was “unprecedented”.

Pictured above Major General David Saw and Jill Haley Courtesy of the BBC.

Original Source: http://www.bbc.co.uk/news/uk-england-tyne-21558757

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AF&V Launchpad

20% of borrowers focus less than a week researching their next mortgage

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Results from research indicate that one in five UK homeowners about twenty per cent spend a week or less looking into mortgage products before they make a decision to buy.

Almost half of borrowers forty nine per cent spend a month or less on research. This is despite the fact that a mortgage is likely to be the largest financial commitment many people make in their lives.

The research was carried out in connection with the launch of the new Mortgage Service from a major UK mortgage provider.

AFVE wants to help borrowers better understand the options available to them when finding their next mortgage, and to ultimately save them time, money and hassle when making decisions on mortgage products.

Mortgage advisers work to remove the stress associated with researching and applying for a mortgage, and ensure that borrowers receive all the information and advice they need to help them make informed decisions. With the number of products currently available, the importance of getting independent mortgage advice cannot be underestimated. This is especially true given the current market conditions of reduced lending and more stringent criteria. Although strict lending criteria makes it more difficult for many borrowers to get a mortgage, it is important that buyers find a product which best suits their specific circumstance and don’t settle for second best.

The results of the survey highlight a bemusing approach to how people select their next mortgage. A mortgage is likely to be the largest financial commitment many will make and yet one in five buyers are happy to spend less than a week considering it. The mortgage market can be extremely complicated, and a ‘one size fits all’ approach won’t be suitable for everyone. Providing access to a national advice service will allow borrowers to experience a better way of finding their next mortgage, and ensure their individual needs are properly met.

To make sure your needs are met why not call our team now on 0300 11 11 239, let us do the hard work for you.

CML announce: Lending to first-time buyers increased in February

First-time buyers increased

The number of first-time buyers increased by 3 per cent in February, marking the best start to a year since 2008, according to the Council of Mortgage Lenders (CML). Activity in the first-time buyer sector was 17 per cent stronger in February than in February last year, and combined with January reached the largest number of first-time buyers in the first two months of the year since 2008. Lending to home movers fell – contributing to an overall dip in house purchase lending – while remortgage lending also eased.

First-time buyers

A total of 16,400 loans were advanced to first-time buyers in February, up on 15,900 in January and 14,000 at the same time last year. By value, loans to first-time buyers totaled £2 billion, the same amount as the previous month, but 18 per cent higher than in February 2012 (1.7 billion). First-time buyers accounted for 43 per cent of all house purchase loans in February. This was the sixth consecutive month that this indicator has been at or above 40 per cent, suggesting that market conditions continue to improve for first-time buyers. Indicators of loan affordability also suggest that the market was marginally more favourable for first-time buyers in February.First-time buyers typically borrowed a smaller amount in February than in January, both in absolute terms and relative to their income. First-time buyers typically borrowed 3.19 times their income in February, down from 3.2 times in January, while the average loan-to-value ratio remained at 80 per cent. This is likely to be associated with a shift towards the purchase of less expensive properties by first-time buyers, with a small increase in the proportion of properties bought for less than £125,000.

Home movers
Lending to home movers fell in February for the third consecutive month. A total of 21,500 loans were advanced to borrowers who moved in February, down by 4 per cent compared to January and a fall of 3 per cent on February last year. By value, home movers were advanced 3.5 billion in February, a 5 per cent fall compared to January.

House purchase lending
The underlying trend for resilient house purchase lending continued in February, with lending stronger than a year earlier. A total of 37,900 loans (worth £5.5 billion) were advanced in February, up by 5 per cent on the same time last year (36,400 loans). Month on month, house purchase lending dipped in February compared to January when 38,200 loans were advanced.

Remortgage lending

Remortgage lending remained subdued in February, down compared to both the previous month and February 2012. In February, £2.6 billion was advanced to borrowers remortgaging, a 13 per cent fall compared to January (3 billion), and 28 per cent lower than February last year (£3.9 billion).

Director General of CML, Paul Smee, Commenting on the data, saying: “First-time buyers are continuing to take advantage of more favourable market conditions, helping to drive the underlying trend for resilient house purchase lending. We hope that the new initiatives announced by the government in the 2013 Budget will further stimulate first-time buyer activity but also help those ‘second steppers’ looking to move into a new or existing home.”

If you are looking for help and advice please call our Team on 0300 11 11 239, we are set up to support the Armed Forces Community.

48 flats at Bickleys Court in Bognor Regis at 20% below open market value to members of the Armed Forces and Veterans.

SALE OF BICKLEYS COURT FLATS IN BOGNOR REGIS TO MEMBERS OF THE ARMED FORCES AND VETERANS

Armed Forces & Veterans Estates is selling 48 flats at Bickleys Court in Bognor Regis at 20% below open market value to members of the Armed Forces and Veterans.

Arun District Council voted unanimously on 13 March 2013 that the age restriction on Bickleys Court should be lifted and thus they enabled the exciting AFV Estates ‘Homes for Heroes’ initiative at Bickleys Court, to move forward.

Several of the Councillors commented that they thought this initiative perfect for Bickleys Court and Bognor Regis, as well as commenting on how pleased they were to be helping Service people. They noted the decision was in line with the Government’s Armed Forces Covenant.

Since planning was granted, 15 serving personnel have heard about the scheme and have travelled to the building; incredibly every eligible person that has visited has agreed to purchase a flat. Invariably, they all commented on how convenient Bognor Regis was to southern military bases and how they looked forward to living there.

The flats are expected to be snapped up; large studio flats start at £60,000.

The 20% discounts offered to the servicemen and women by AFV Estates reflect the purpose of the Armed Forces Covenant to give those that serve a fair deal in housing and other matters. Often servicemen and women find it difficult to gain suitable priority on publicly provided housing lists as they get posted around the world. The MOD will be bringing in policies that encourage more home ownership and some servicemen and women are able to take an advance of pay to help build up a deposit for a house. Many of the prospective buyers were taking advantage of these loans in order to purchase a flat at Bickleys Court.

Major General David Shaw, a Director of AFV Estates and now a veteran himself, said: “This is a wonderful opportunity for those in the Armed Forces, or veterans, to buy a flat at an affordable, discounted price. The MOD is encouraging people to make sure their own housing needs are covered in the long term and AF&V Estates is helping them do this.”

Thanks to AF&V Estates who have managed to secure further investment into the Homes for Heroes Initiative, these apartments are now available for £60,000.

Bickleys Court in Bognor Regis has just been given the seal of approval to provide a low cost housing solution for serving personnel & veterans, as part of Bognor Regis Council’s commitment to helping our Armed Forces get on the property ladder.

The project which is being funded by AF&V Estates as part of the Homes for Heroes Initiative on a not for profit basis, consists of 48 studio and 1 bed apartments prices from £60,000.

Forces Homes will be providing a Purchase Management Service to represent the buyers interests for an easy and hassle free purchase. Buyers will also benefit from discounted legal and purchase fees. These homes are expected to be popular, avoid disappointment and pre-register today.

• Local Shops & Small Boutique’s – 3 minute walk
• Sports Centre – 7 minute walk
• Beach – 6 minute walk
• Train Station – 5 minute drive – London Victoria direct just 1hr 50mins

If you have any mortgage or property questions, please do not hesitate to contact the team.Call us today and ask for an application pack!
0044 (0)300 11 11 239

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Debate over housing stock crisis gathers momentum, AFVE begins to provide solutions.

Speaking at a Social Market Foundation debate, Professor Stephen Nickell of Nuffield College, Oxford was reported to have said “There are fewer vacant houses in England than in nearly any other country”.

Industry experts gathered at a Westminster location last week to discuss the chronic lack of housing facing this generation and what could be done to address this.

Professor Nickell said “People can’t get on the ladder these days when the houses aren’t there and prices are high because of a lack of competition”.

“Even in the boom times of 2006 not enough houses were being built where people wanted to live and there was no incentive to allow development. Then Labour constructed a control system for house building targets related to population growth and new building in England was up 170,000 in 2008; then the crunch came.”

Nickell pointed out that there are acres of space in places such as Oxford where houses could be built but they are on a green belt, planning permission is restricted or locals object.

“We know everyone would be opposed to developments in places where land is available, like Tumbridge Wells. You would need money to bribe people to agree to it. You would need to give them details of facilities that would be provided if they agreed to it.”

However, he also argued that no amount of money would lead residents to want more housing in their area. “Some people don’t see the housing stock problem as they believe there are a lot of empty houses in Britain, left by the deceased or second homes, but there are actually fewer vacant houses than nearly any other country, so it’s a red herring.”

He suggested that a proposal to increase social housing was “pie in the sky, as there’s no money there.”

Good news then that Armed forces and Veterans Estates (AFVE) are developing projects across the UK making use of disused properties for our military community and veterans to buy or rent.

Not only that but AFVE negotiate deals and discounts that are directly passed on to the client buying the property, often these are not available through normal channels, sometimes the discount is as high as 25% on certain property purchases.

Supporting our Armed Forces and Veterans Community has always been our key goal. We are planning for their future offering those people who have given so much for this country an opportunity like no other, getting them into housing, on the property ladder and offering financial discounts and support in the shape of our pre pay Mastercard ® Armed Forces and Veterans Privilege Card.

Click below for information on the Armed Forces and Veterans Property and Privilege campaign for our Forces Community.
Property and Privilege

First-time buyers in Scotland hits post-crunch high

The number of first-time buyers in Scotland rose to the largest annual total in four years, according to new data released today by the Council of Mortgage Lenders in Scotland.

A total of 19,000 first-time buyers purchased a property in Scotland in 2012, an increase of 13 per cent on the previous year.

Meanwhile, in the fourth quarter of last year lending to first-time buyers rose to 5,200, up by 18 per cent on the same period in 2011.

By value, loans to first-time buyers totalled £490 million in the fourth quarter, up from £460 million in the previous quarter and £400 million in the fourth quarter of 2011.

In the fourth quarter 62 per cent of first-time buyers bought a property for less than £125,000 compared to 39 per cent in the UK as a whole.

First-time buyers also borrowed less relative to their income than in the UK overall, and spent a smaller proportion of their income on mortgage payments. First-time buyers in Scotland typically borrowed 2.88 times their income, considerably lower than the 3.26 times borrowed by their counterparts in the rest of the UK.

While there was an increase in lending to first-time buyers in Scotland, there was a fall in lending to home movers in the fourth quarter for the second consecutive quarter. A total of 7,100 loans were advanced to home movers, compared to 7,300 in the third quarter and 7,200 in the same period in 2011.

Despite the slight easing in the second half of the year, there was a small increase in lending to home movers for 2012 overall. A total of 27,600 loans were advanced to home movers (worth £3.66 billion) up marginally from 27, 500 loans (worth £3.6 billion) in 2011.

As a result of the increase in first-time buyer activity but slight fall in loans to home movers, overall house purchase lending rose slightly in the fourth quarter.

Following a similar pattern to the UK overall, remortgage lending increased in the fourth quarter when £700 million was advanced – a 6 per cent increase compared to the third quarter but still 20 per cent lower than the fourth quarter in 2011.

Overall, a year-on-year fall in each quarter resulted in a 19 per cent fall in remortgage lending in 2012 compared to 2011.

Chair of CML Scotland, Iain Malloch, was reported to have commented,: “The Scottish housing market showed positive signs of recovery in 2012, broadly following the pattern seen in the rest of the UK. The availability of mortgages at more than 90 per cent loan-to-value has more than doubled in the last two years and lenders expect to offer more, high loan-to-value mortgages this year. This, and the fact that the number of first-time buyers is at a post-crunch high, suggests that lenders really are open for business.”