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MOD warehouse site set for 500 homes   July 2005	Last Updated:   Monday, July 04, 2005
A former MOD warehousing site at Plymouth is set to become a new community with homes, shops, offices and public square. Since the Second World War, the Stores Enclave at South Yard in Devonport has been in the ownership of the Ministry of Defence and closed to the public for security reasons. English Partnerships, the national regeneration agency, has plans to create a sustainable, mixed-use community on the 7.3 ha site and has submitted an outline planning application to Plymouth City Council. Working with local people and regional stakeholders, the agency has put forward exciting proposals for the provision of over 500 high-quality homes, with 25% classed as affordable, a healthcare centre, small supermarket, new shops, offices and managed workspace. The retention of the historic Market Hall building and the creation of a new public square will establish the development’s unique identity and residents will benefit from safe streets, open space and pleasant surroundings. Planning consultants Scott Wilson prepared the planning application with urban design practice Matrix Partnership on behalf of English Partnerships. The long-awaited regeneration of the site, which was formerly used for warehousing, will reconnect it with the rest of the Devonport neighbourhood and provide the full range of homes for sale, rent and shared ownership plus new job opportunities for local people in a carefully designed environment. Subject to the City Council’s approval of the outline planning application and the successful acquisition of the site, English Partnerships will appoint a development partner to bring forward the development. The removal of the wall surrounding the site is eagerly anticipated and is likely to come down in stages as each phase of the scheme is built. Local people will be kept informed of the progress being made via a series of public meetings and information boards.
Buy-to-let will gain from budget   March 2005	Last Updated:   Monday, March 21, 2005
Chancellor Gordon Brown yesterday announced several measures designed to help homebuyers that could also benefit buy-to-let investors. In his ninth Budget, Mr Brown announced that he would be raising the current stamp duty threshold of £60,000 to £120,000. Although the measures will principally help those on low incomes and first time buyers to get on to the property ladder, buy-to-let investors who are looking to invest in the lower end of the property market will also benefit from the increased threshold, as it will enable them to pay less tax on properties valued below it. Mr Brown also stated that the UK has enjoyed sustained economic growth for 50 consecutive quarters and that this is predicted to continue in quarters 51st, 52nd, 53rd and 54th.
Buy-to-let growth slowing down   February 2005	Last Updated:   Monday, February 21, 2005
The buy-to-let sector continued to grow strongly in the second half of 2004 - although at a slower rate than in previous periods, according to the latest survey from the Council of Mortgage Lenders. At the end of 2004 there were an estimated 526,200 buy-to-let mortgages worth £52.2 billion, a 34% increase in value over the previous year. Buy-to-let lending continues to account for 6% of total outstanding residential mortgage lending. The typical maximum percentage advance remained 80% and lenders continued to require rental income to exceed mortgage payments by an average 30%, the same as in the first half of the year. Arrears in the buy-to-let sector remain lower than for mortgages in general (0.63% of buy-to-let loans are in arrears of three months or more, against 0.8% of all mortgages), but have increased more than those on mortgages in general. This probably reflects the additional pressures on landlords from variable rental yields, on top of the general pressures from rising interest rates felt by mortgage holders as a whole. Commenting on the latest survey, CML Senior Policy Adviser Andrew Heywood said: "As the housing market boom gradually subsides, it is no surprise that growth in buy-to-let lending is slowing down. Our survey suggests that buy-to-let investors are largely holding on to their existing portfolios, but simply making fewer acquisitions. This trend of slower, but continuing, market growth is what we expect to see throughout 2005." "Recent CML research to gauge buy-to-let landlords' intentions suggests that most expect to maintain or increase their holdings, and have a long-term interest in the market. We are confident that the buy-to-let sector will continue to grow and to form an attractive part of many investors' portfolios."
London Prices   November 2004	Last Updated:   Monday, November 22, 2004
House prices in London's most fashionable areas have fallen for the second month running, according to estate agency Knight Frank. Kensington, Chelsea, Regent's Park and Mayfair saw 0.5% falls in October following a 0.3% drop in September. Houses at the upper end of the market costing £2m to £4m, were hardest hit. But the agency says rents in the same areas are 4.3% higher than last year.
Buy-to-let market not unstable   October 2004	Last Updated:   Thursday, September 30, 2004
New figures detailed in the Paragon Mortgages September Buy-to-Let Index reveal a pick-up in rental incomes across all but three regions - the index tracking, on a monthly basis, key indicators relating to buy-to-let, in particular yields, landlord property values and rental incomes. Data shows rents increased in seven regions, with the largest rise in Wales, up 11.4% to £8,859, followed by the East Midlands up 6.3% to £9,721, and the West Midlands up 5.5% to £9,499. Rental incomes in both the North West and East Anglia rose by over 3% to £7,009 and £8,854 respectively, while smaller rises were seen in the South West and Yorkshire. Indeed, five out of ten regions are now registering rents of over £9,000 per year. Meanwhile, property values rose in August across eight of the ten regions, with Wales up by 11.06% (year-on-year) to £126,576, the West Midlands up 7.3% to £132,853 and the South West up 5.66% to £181,035. Smaller rises in values were seen across the remaining regions except the North and the South East, where prices fell slightly. As a result of rises in property values over the past couple of months, yields have slipped slightly - landlords now achieving, on average, a yield of 6.7% gross from their investment properties. Indeed, they continue to enjoy good overall returns, with total returns generated since August 2003 of just over 22% (on an average property purchased that month) - a total of £27,620, comprising £18,266 in capital appreciation plus £9,354 in rental income, on a property worth £123,498 at purchase. Overall returns have tended to be lower in southern regions - where house price inflation has been relatively weaker over the past year, and yields lower. Year-on-year, the rate of increase of landlord property values has also declined, from over 17% in July to 14.8% in August. Paragon's data continues to show annual house price inflation for investors at lower levels than the latest figures published by Halifax and Nationwide suggesting that overall, landlords continue to negotiate better deals on properties than owner-occupiers. Generally, there is an inverse correlation between yield and property value, i.e. the cheapest properties offer the best percentage yield. The North saw an increase in yields of nearly 2% as property values dipped slightly in August. Conversely, in London and the South East, where properties values are higher, yields are lower.
House prices could drop 15% after ‘frenzy’    13 July 2004	Last Updated:   Tuesday, July 13, 2004
A new report concludes that house prices could fall by around 10-15% over the next few years, but this is unlikely to lead to a repeat of the early 1990s recession, say the authors. The report also says that speculative ‘frenzy’, currently evident on the part of buy-to-let investors has been a recurrent theme in past housing booms. The analysis, which is published today in PricewaterhouseCoopers regular UK Economic Outlook report, notes that the housing market has shown surprising strength over the past year, with the result that the ratios of house prices to both disposable incomes and rents have moved further above their long-run average values. These measures now suggest overvaluations relative to historic norms of around 20-40%. The analysis suggests that a significant part of this divergence from historic norms can be explained by reductions in real interest rates and slower growth in the housing stock since the early 1990s, but a significant degree of unexplained overvaluation remains. Historic evidence suggests that speculative ‘frenzy’ has been a recurrent theme in past housing market booms and some such effect seems evident at present in the buy-to-let sector of the market, which appears to be increasingly driven by hopes of continued capital appreciation as net rental yields (after deducting finance costs) have fallen to low or even negative levels. The report notes that is impossible to predict the precise timing and extent of any future housing market correction, but argues that it would be prudent for both potential homebuyers and businesses in the most affected sectors (such as mortgage lending, estate agency and household durables) to consider the potential effects of a future fall in the level of house prices. John Hawksworth, Head of Macroeconomics at PricewaterhouseCoopers, said: “House prices do seem overvalued at present, although part of this is explicable by lower real interest rates and supply shortages. Based on our analysis of evidence from previous housing market cycles, prices could decline by around 10-15% in cash terms, or around 20-30% in real terms, when measured from the peak to the trough of the current cycle.” “A house price decline of this magnitude might reduce consumer spending by around 1.5-2.5% over the next few years, relative to normal trends. But the impact on GDP would be significantly less, so this would be unlikely to lead to the kind of recession seen in the early 1990s.”
Two years of falling house prices predicted    22/6/04	Last Updated:   Friday, June 25, 2004
In the same week as property website Rightmove says it sees first signs of an orderly slowdown in the market, a leading economics think-tank has warned of two years of falling property prices, but insisted the market is heading for a soft landing. Rightmove had said yesterday that a gradual increase in estate agents’ stock levels, partly underpinned by rises in borrowing costs and affordability constraints at current prices, is contributing to an orderly slowdown in the market. And just a week after Bank of England Governor Mervyn King said Britons should be wary of buying a home because of a potential collapse in prices, the Centre for Economics and Business Research said the UK housing market is close to its peak, but prices will not, as some predict, crash by 20-40 per cent. The think-tank sees house-price inflation dipping from 22.4 per cent last year to 15.2 per cent this year, before slowing sharply to 3.5 per cent in 2005. The subsequent two years could see prices fall, by 1.5 per cent in 2006 and 2.3 per cent in 2007, before picking up again in 2008. The only places where prices will fall, says the CEBR, are the North East of England, Scotland and Wales, and in these regions values will only see a drop of 10 per cent by 2008. <
Market Town's see high rises in price   18 June 2004	Last Updated:   Friday, June 18, 2004
Market towns, defined as having a population of between 3,000 and 30,000 are a distinctive and important part of the English landscape. So, with many city dwellers dreaming of escaping the concrete jungle by moving to a more rural location, it’s not surprising that all but four of the nation’s market towns have seen a doubling of prices since 1995. Halifax carried out research focusing on house prices in 112 English market towns and the key findings are: • Ten market towns in England have an average house price in excess of £250,000. Beaconsfield in Buckinghamshire is by far the most expensive with an average price of £550,495 followed by Midhurst in West Sussex (£279,840) and Ringwood in Hampshire (£279,266). • Thirty-six market towns have an average house price above £200,000. The overwhelming majority of these towns are in the South East (21) and the South West (8). • Midhurst in West Sussex (223%) and Bodmin in Cornwall (221%) have recorded the biggest price rises since 1995. Twelve market towns have seen prices rise by at least 200% since 1995. All these towns are in the South East and the South West with the exception of Framlingham in Suffolk (211%). • House prices have at least doubled in all the market towns examined since 1995. %). • Two-thirds of the market towns analysed have an average house price above the average for their county. Prices in Beaconsfield are, on average, two and a half times more than in Buckinghamshire. Martin Ellis, Chief Economist at Halifax, commented: "Market towns are usually very attractive places to live. This is reflected in the majority of market towns having higher property prices than their surrounding counties and the more than doubling in average prices since 1995 in all but a few exceptions."
Hamptons’ view of the property market    Monday 7th June	Last Updated:   Wednesday, June 09, 2004
Hamptons International has published its latest report on the property market, with the main headlines being as follows: Market Momentum Continues: Sales agreed up by nearly a quarter Exchanges up by 56% Net sales 26% higher. …but Increased caution reported: Conflicting press reports about the housing market, rising borrowing costs and growing economic uncertainty are increasing caution among both vendors and buyers. London still booming, but… Record transaction levels reported in several branches. However, although demand is still much higher than last year, it is the lowest level for several months. “This signifies a change in the climate, driven by increasing buyer caution.” Mark Anderson, Chief Operating Officer, said: “The widely anticipated post-Easter influx of properties has not yet materialised, although high demand continues. Currently in London withdrawals and fall throughs are both 25% lower than last year, underlining the current strong commitment of vendors and purchasers. However, vendors are increasingly having a problem finding somewhere suitable to move to and, if new stock does not materialise, this will undoubtedly create a more frustrating market for both buyers and sellers, some of whom will choose to opt out. There are definite signs of increased caution. Some of our offices in the most overheated areas are already addressing the need for price reductions as it becomes increasingly evident that we may have passed the crest of the Spring wave. However, the tide remains high.” Many potential vendors are expecting prices to continue to rise and, in spite of our advice to sell now, they are adopting a ‘wait-and-see’ approach. Conflicting messages in the press - on the one hand highlighting booming house prices and on the other predicting a property crash and more expensive borrowing - are contributing to the confusion: “We continue to have confused and conflicting messages concerning market conditions coming from the media, and it does make it difficult for house sellers to conclude exactly what is happening in the marketplace.” Data from our Lettings branch network reveals that more Landlords, faced with declining yields, are offloading investment properties to capitalise on the strong sales market: Prices have certainly risen this year, but exactly by how much varies depending who you ask. Our data reveals that across our network prices this year have increased by almost 10%: “The median price of houses sold across Hamptons’ UK network rose by 9.3% between 1 January 2004 and 30th May 2004. House price rises continue to be driven by a shortage of supply of homes.” Country Sales Director David Adams Also think like a buyer: it is worthwhile walking through your own property as a prospective purchaser and note the presentational jobs which you need to do. But with higher interest rates and record oil prices predicted (not to mention the increasing threat of global terrorism), one has to ask how long vendors will continue to make hay: “The general supply and demand imbalance is responsible for the uplift in prices that we have seen this year. However, it is not obvious how sustainable this is likely to be, should we see a tailing off of demand.” d Demand The momentum from earlier months carried into May; we report another month of increased transaction levels compared to last year: Sales agreed are up by nearly a quarter Exchanges are up by 56% Sales are 26% higher. New purchasers registering in May were 13% higher than last year. London buyers continue to dominate the scene, still nearly a quarter higher in number than this time last year. Wimbledon Manager Mary Robinson gives a report typical of the London climate in May: “We had another very busy month, with net sales in double figures for the third consecutive month. This has been the busiest period in the last six months. Many properties that have been on the market for some months have now had sales agreed, indicating a general firming of prices. Buyers are still wary of over-priced properties and these continue to stick.” However, London Sales Director Marc Goldberg comments that although the capital saw record transaction levels in several branches and demand continues to be strong (still over 20% higher than last year), the number of buyers registering was the lowest for several months. Goldberg believes that this signifies a change in the climate, driven by increasing buyer caution. New buyers registering in our country regions are similar to last year’s level and nearly one-fifth lower than in April, but rather than a sign of demand evaporating this is indicative of the high levels of new buyers in April. The number of viewings being conducted is also relatively lower than in May 2003, but the warmer weather will reinvigorate this activity. Indeed many branches are reporting an upturn in activity: “With the arrival of warmer weather we have noticed an upsurge in prospective purchasers viewing properties.” Nigel Gammon, Godalming “Activity has picked up with an increasing number of potential buyers registering, many of them in strong purchasing positions.” Carol Copeland, Farnham “Late spring buyers became very busy during April and May. Sales arranged during this period have been at record levels.” Felicity Chetwood, Chichester Although viewings may be down, buyers are certainly actively searching: in May our website attracted a record number of users at over 130,000 unique visitors - probably the largest number of visitors to any independent property website. There are signs that the momentum from London is at last beginning to ripple through into the country: “We are finding that a huge number of our fresh enquiries are from London.” Nigel Gammon, Godalming “Record numbers of applicants are registering from London.” Heather Hopkins, Marlow What are country buyers looking for? Heather Hopkins observes that buyers’ comments generally reflect two main issues: firstly, the desire for a 'lifestyle' move to a beautiful, cosmopolitan area with excellent schools, and secondly a preference to invest in 'bricks and mortar' as opposed to the uncertainties of the stock market. The perfect country cottage remains in high demand, but these are quite difficult to find (and are being snapped up whenever they appear). Larger family houses with good grounds and within easy reach of the station continue to be in extremely high demand. We have also witnessed competitive bidding on smaller flats in town centres, again offering easy commuting. As mentioned above, pricing is always a key factor in attracting interest from buyers. There is a very strong level of commitment among current purchasers in the capital (and vendors - see above) as we report fall throughs in London are 25% lower than last year. But the shortage of stock may be deterring buyers and encouraging them to stay put: “Many of our buyers expected to see a greater choice of properties to buy by now, when the reality is that they are disappointed by the lack of choice.” Susannah Bennett, Bath The question must be “how long will the momentum in the market continue”? Managers are reporting that the further base rate increase has so far not reduced enthusiasm among buyers. For the early Summer – assuming no political or economic bombshells - we predict that a buoyant market will continue, driven by a much-needed increase in the number of new properties coming to the market: “As long as asking prices remain realistic, interest rates rises are small and world news remains relatively calm we should see the volume of transactions and heighten competition between sellers as buyer choice expands.” Chris Moorhouse, Thames Valley & Chilterns However, it must be stressed that continuing conflicting press reports about the housing market, increased borrowing costs and growing economic uncertainty (e.g. oil) may yet conspire to nip the market before it has fully bloomed. Indeed increased buyer caution is already being widely reported: “More sales have fallen through due to less confidence in the market. These are largely due to press reports.” Fenella Russell-Smith, Clapham “Further interest rate rises and mixed media messages mean that many purchasers will err on the side of caution.” Garry Collins, Weybridge “Purchasers are being somewhat more cautious in their approach.” Scott Ford, Dorking “We saw a higher level of fall throughs, representing growing buyer uncertainty.” Stephen Tarrant, Winchester “Gradually increasing interest rates, the current political and economic backdrop and mixed media messages will cause increased caution in the market.” Andrew Marshall, Marlborough “It is evident that buyers are biding their time before submitting offers.” Guy Emanuel, Liphook At the top end of the market, Country House Director John Denney echoes the view of his counterparts and remains optimistic that June and July will pick up, with more new houses coming on, driven by strong demand for quality period country houses. Our message to buyers is that more stock is expected, but so are interest rate rises: 3 month LIBOR is up 0.20% at 4.63%. The current base rate is 4.25%. So the city is expecting either 0.25% or 0.50% increase in the next 3 months. 12 Month LIBOR is up 0.06% at 5.19%, indicating a 1% increase in the next 12 months. The opportunity to lock in to favourable borrowing rates should not prevent you from actively searching for your ideal property now and throughout the Summer as new stock comes on.
Pressure for house buyers and sellers    Tuesday 18th May	Last Updated:   Thursday, May 20, 2004
Houses are not appearing on the market as quickly as possible and many people are opting to buy now rather than risk paying more for a similar property over the coming months, say the Royal Institution of Chartered Surveyors in their latest housing market survey published today. Despite the ongoing debate about a potential housing market crash, surveyors are confident that prices will continue to rise in the months ahead, particularly in the North of England and Wales. Interest rate rises and speculation of house price crashes does not seem to have either significantly discouraged buyers from looking for their next home, or encouraged others to put their property on the market. This is creating what is commonly referred to as a “tight” market situation – and it is these conditions, which will create an upward pressure on prices over the next few months. In April, 35 percent more surveyors expect prices to rise than fall over the next three months, compared to 38 percent in March. Property sales remained static for the three months to April, averaging 32 per chartered surveyor. But surveyor expectations for future sales are gradually improving. Sales confidence is strongest in London and throughout the South East. RICS housing spokesman, Jeremy Leaf, says: “The expected springtime flood of properties onto the market has just not materialised. Many people are realising that the current number of houses for sale is as good as it gets for now, and are looking to buy quickly rather than risk paying more for a similar property over the coming months.” “In this environment it is important that both sellers and buyers are not taken for a ride. Sellers may find their properties are overvalued and sit on the market for a while, whilst some buyers are paying above the odds in order to secure a property. We need to caution against the market overheating again.”
Sound fundamentals underpin housing market    6 may 2004	Last Updated:   Thursday, May 06, 2004
House prices increased by 1.8% in April, in line with the average rise during the preceding four months, and confirming the continuing strength of the housing market, reports the Halifax today. Sound fundamentals underpin the housing market the, bank says. The economy is growing at a healthy pace resulting in record high levels of employment and further falls in unemployment. Interest rates, whilst on an upward trend with a high probability of another rise this week, remain historically low. According to Halifax research, the household sector balance sheet is in very good shape. The total value of private sector housing assets was equivalent to 3.2 times the value of total household debt at the end of 2003 - a much healthier position than both 5 and 10 years ago when the ratio was 2.7 times. The low level of interest rates also means that debt-servicing costs have remained relatively modest despite the record levels of debt. Interest payments on all household debt account for 8% of annual household disposable income, significantly below the peak of 15% in 1990. Commenting on the sound condition of the housing market, Martin Ellis, Chief Economist, said: “The fundamentals will remain supportive during the remainder of 2004 with little prospect of either a turnaround in the labour market or a sharp rise in interest rates.” “Nevertheless, the increasing difficulties faced by potential first-time buyers in entering the market, and the impact of the expected imminent rise in interest rates together with the increases already seen in recent months, should result in a gradual easing in house price inflation during the second half of the year." Base rates likely to rise further but will remain historically low This week's decision on interest rates promises to be finely balanced, comments Ellis. “The high level of the pound (which will help to curb inflationary pressures by reducing import prices), and the low current level of inflation should prevent the need for aggressive rate rises this year and we continue to expect base rates to end the year at around 4.5%. Whilst the level of rates will remain historically low, the cumulative effect of the rise in interest rates from a low of 3.5% last autumn should curb housing demand.” Mortgage approvals figures provide no sign of an imminent housing market slowdown The number of mortgages approved for house purchase remains at high levels with the number of loans 24% higher during the first quarter of 2004 than in the same period last year, according to the latest Bank of England figures. These figures show that there is no sign of an imminent easing in the housing market.
Chancellor debunks gloom merchants   20 April 2004	Last Updated:   Friday, April 30, 2004
Chancellor Gordon Brown has dismissed predictions of a housing market crash, delivering a buoyant speech in Washington this weekend. Speaking at meetings of the International Monetary Fund and the World Bank, the chancellor was upbeat about the UK economy and said that the cost of servicing debt in relation to incomes remains very low. The International Monetary Fund has previously warned the risk of a collapse in house prices is the single biggest threat to the economy but Brown was likely also responding to doom and gloom merchants such as such as Roger Bootle and Tony Dye who have argued that home-buyers are becoming dangerously over-stretched by rising prices. Questioned by reporters after the meetings, Brown pointed to his budget forecast of more balanced economic growth over the course of the year. "While house prices have certainly risen, as everybody knows, what is also the case is that people's debt servicing payments, mortgage payments as a share of their income are still far lower than they were 10 years ago," Brown said. Brown pointed to the G7 statement, which said the global economic recovery continues to strengthen and was becoming more broadly balanced. "It was generally acknowledged that Britain and the U.S. are leading the world economic recovery," he said. But the chancellor also admitted risks to the economies remained. Among them were current account imbalances, the lack of progress in trade talks, commodity and oil prices.
Buy-to-let market not unstable   19 April 2004	Last Updated:   Monday, April 19, 2004
Anyone who tries to argue that the buy-to-let market and the private rented sector is unstable is not reading the figures correctly, points out the Association of Residential Letting Agents president, Robert Jordan. Buy-to-let stability is pointed up by difference in rents and yields, the association says. The average capital asset value of houses and flats in the private rented sector remained stable during the first quarter of the year. This left the Association of Residential Letting Agents (ARLA) buy-to-let index at exactly 100 for cash purchases of buy-to-let property and 100.1 for property investment geared with a mortgage. While actual rents received have risen since the second quarter of last year, yields have fallen against the continuing increase in capital values. This has led ARLA to warn that buy-to-let investors must be sure they understand the difference between the two. The projected annual rate of return over five years on a cash purchase of buy-to-let property is 11.7% and for geared investment the annual rate of return is 23.21% per year. These figures are based on current rental returns and average house price inflation over the past twenty years of 8.55% These figures are contained in the quarterly ARLA Review and Index published today, April 14. Backed by the ARLA panel of mortgage lenders, Birmingham Midshires, GMAC Residential Funding, NatWest Mortgage Services, Paragon Mortgages and The Mortgage Business, the ARLA Review and Index is based on the largest survey of its kind in the private rented sector. It draws data from nearly 500 ARLA member letting offices. The review showed a marginal fall in the average annual rate of return for cash investments of 0.22% and for geared investments 0.83%. The lowest rate of return for a cash purchase was in prime central London with 10.82% and the highest in the North West with 12.01%. For geared investments, again the lowest was prime central London with 22.32% and it was highest in the North West with 25.26%. Rates of return include both rental yields and capital appreciation. ARLA members report that the average void period across the country is unchanged at 31 days a year and there was a 5% drop in the number reporting an over supply of properties. Despite this, ARLA members report that they showed an average of 6.5 prospective tenants around a property before letting it against 5.6 in the previous quarter. Said Robert Jordan, "Anyone who tries to report that the buy-to-let market and the private rented sector is unstable is not reading the figures correctly. The market remains stable and, as our recent investor survey shows, the average investor landlord is expecting to hold their property investments for between ten and twenty years. This shows a full understanding of the buy-to-let market and the contra-cyclical nature of house price inflation and rental demand."
Buy-to-let boom predicted   12 January 2004	Last Updated:   Monday, January 12, 2004
UK property experts are predicting that the effects of a further 10 countries joining the EU in 2004 will have a huge impact on the UK housing market. The Association of Residential Lettings Agents (ARLA) says the expansion of the EU will attract hundreds of thousands of immigrants to the UK, which will in turn increase the demand for rental accommodation. Nick Clark, Managing Director of Homebuyer Events who run the Homebuyer Show and Property Investor Show says: “With the UK already among the most popular choices for asylum seekers, the prospects of significant inflows of workers, both manual and professional is significant.” “We are talking about potentially hundreds of thousands of people, which is likely to create a marked increased demand for rentals.” “With limits to supply, this can only bid up rents, and send the buy to let sector into another boom phase.” John Wriglesworth, Senior Economist for Hometrack, the independent property research company comments: “There is no doubt that the new members to the EU will open up the floodgates for migrant workers into the UK. I would expect well over 100,000 extra job seekers, nearly all of which will require rental accommodation.” “This could have a major impact on the buy to let market, especially in London and the South East where most new job opportunities exist. I would expect rental yields to rise this year as a result.”
Agents see just 7% annual house price growth	Last Updated:   Friday, October 10, 2003
TEAM’s latest national survey shows that nation-wide the average price of homes ‘under offer’ was £173,098 in mid-September - an increase of 0.1% compared with August. The average rise in the last 12 months is now 6.8%. This is in sharp contrast to Halifax’s seasonally adjusted figures of 1.5% for the month and 18.6% for the year. The survey is based on data supplied by 558 offices of TEAM members in 16 regions across England and Wales and reflects a daily average of 1,590 homes listed as under offer by agents in the four-week period to mid-September. As usual, the national picture conceals local blips. Two regions, Kent and Surrey, have reported exceptional monthly increases of 6% and 9% respectively while at the other end of the spectrum, prices in Thames Valley seem to have fallen by 6%. These distortions can be caused by a disproportionate number of high value, or low value, properties ‘under offer’ in a particular region. TEAM’s national chairman, Philip Muzzlewhite, commented: “Overall the market remains strong and shows no sign that it has overheated, confirming TEAM’s view that no major downward adjustment is to occur, despite the efforts of some to talk the market down.” Jim Atkins, a past president of the National Association of Estate Agents and a TEAM member, based in Dorset, said: “It is pleasing to see that the strong market of the summer months has continued into September, with a high level of instructions and sales.” “Prices remain fairly level throughout most of the country, but with a few regional fluctuations. Overall it is a strong, confident property market which looks set to continue at least until the end of the year.”