Kent

Andy Stevens, managing director at Ashford estate agency Stevens & Co

IT may sound like a strange question, but are you looking for the right house? It’s definitely worth giving the subject careful thought if you want to enjoy a swift and successful search for your new home.

You’d never buy an item of clothing that wasn’t your size, so why would you when it comes to a house? Many buyers come unstuck in their search for a new home as they may know what they want but haven’t considered what they actually need.

A home must be able to accommodate those requirements, whatever they are. A family needs ample space and bedrooms. An elderly couple could benefit from a bungalow. A socially-active professional couple may be happier with a city apartment than a cottage in a sleepy village.

Then there are your long-term plans. These are just as important as your current situation, in fact maybe more so. For example, should a newly-wed couple who are planning on having children fairly soon really be eyeing up a one-bedroom flat on the top floor?

Then there’s the issue of modernisation. A few minor issues should take next to no time to rectify, but a property that needs a massive overhaul could take months to complete. Is that the kind of scenario that you can embrace, or does it leave you cold?

It’s not just the house itself you should consider, either. We all know the phrase ‘Location, location, location’. When you’re choosing a new home, you’ve also got to pay serious attention to where it is. After all, you can always improve the property, but you definitely can’t move it.

Location doesn’t just refer to how attractive the surrounding area is. Are you going to want a home that’s close to transport links? Do you want to be near work or family and friends? What about schools, leisure facilities, open spaces, shops and amenities? Whatever is important in your life, make sure your house and its location serve those needs as much as possible.

• Andy Stevens, Stevens & Co (01233 640400, www.stevensandco.co.uk).

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John Elliott, managing director of Millwood Designer Homes, fumes at the often-negative Press

The state of the property market has been talked to death over the last few years. Everyone has an opinion, and pessimists are quick to paint the gloomiest of pictures. However, there has been a lot of positive movement in the property market over the last few months.

‘House prices surge again’ was the headline in the Daily Express in November. What a great way to end the year!

The Press is usually hell bent on painting a gloomy and miserable picture of the property market, and as a house-builder it is very frustrating to read the constant bad press when I know that it is not always the truth, just a sensationalised view to ignite the masses. Bad news sells papers, after all.

The Daily Express reported that house prices surged by almost £2,000 in November, defying predictions with a welcome recovery.

In November, Nationwide reported a rise of 0.4 per cent, confirming that the price of a typical home was 1.6 per cent higher than one year ago. That’s not a bad return on your investment, particularly in today’s economic climate.

More importantly, it is a real kick in the teeth for so-called economic property experts who have spent the entire year predicting more doom and gloom for the housing market, casting a web of negative thinking across the nation.

I know a number of people who have been reluctant to sell their homes, even if it was personally the right time for them to do so, just because they were worried that worse was yet to come.

There’s no doubt that the lack of mortgage availability has certainly made things tough for the market, but even here things seem to be looking up. First-time buyers were the worst hit. Demand for high deposits, coupled with a lack of mortgage finance, has pushed up the average age for first- property ownership.

Some reports suggest it could now be as high as 43. However, lenders are beginning to loosen the purse-strings and lend at higher Loan To Values (LTV).

Lenders are also trying harder to offer to borrowers, with a 10 per cent deposit more help to get on the property ladder.

Barclays has returned to the 90 per cent mortgage market after a three-year absence, helping the availability of products to grow by a fifth over the past year and bringing some much-needed competition.

Buyers with a 10 per cent deposit can secure a three-year fixed deal at 4.99 per cent. Over five years, the fixed rate rises to 5.49 per cent. HSBC is offering a five-year fixed rate of 4.89 per cent on 90 per cent LTV andChelsea’s two-year fix at 4.09 per cent is highly competitive.

Although selected lenders are starting to make life easier for first-time buyers by making a 10 per cent  deposit sufficient, if you have 15 per cent or more then the rates are much more competitive.

For example, Holmesdale BS is offering a discount rate of 1.99 per cent for two years with a 25 per cent deposit.

HSBC is offering 1.99 per cent for two years and 3.28 per cent for five years if you have a 40 per cent deposit.

Santander’s tracker deal offers 1.59 per cent above base rate for two years, giving a current rate of 2.09 per cent to those with a 40 per cent deposit.

If you only have 30 per cent, thenChelseacan offer you a variable mortgage of 1.69 per cent above base rate for two tears, giving a current rate of 2.19 per cent.

Despite the concerns for both theUKand global economies, bricks and mortar still remain a highly resilient investment.

With the cost of rent at a record high, buying a house still makes excellent financial sense. In fact, the average homeowner has seen his or her property increase in value by 75 per cent in the past 10 years.

This is a fantastic return on your investment, far better than you would have seen with regular savings, so such strong long-term capital appreciation makes investing in property a wise move – and there has rarely been a better time to do it.

I think that, above all, it is essential you pick the right home for you and you buy for the right reasons. There are some fantastic mortgage deals now to be had, with lots of products on the market, so make sure you do your research to find the best one for you.

Perhaps 2012 will be the year we finally put the recession to bed.

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You may have seen local/national press, recent programmes highlighting the lack of affordable housing in Britain.

There are over 2 million Families desperately in need of affordable homes, there are 1 million properties sitting empty and unused, that’s the equivalent in size to Bristol and Cardiff together.

They also covered the fact that many flats above commercial properties are sitting empty and unused. Landlords have started letting these as residential with most requiring minimal work being carried out to convert them into suitable albeit unusual places to live.

If I look out of the window of my office which is situated on a busy high street in Cliftonville which I’m sure is similar to high streets up and down the country, I can see at least 6 empty commercial properties that have been empty for at least 8 months.

Due to large shopping centres springing up outside of almost every town the local high street is dying, although councils are offering incentives to bring new commercial businesses in unfortunately the lure of free parking, etc. means most are going out of town.

But there is a demand for residential property so instead of letting these properties remain empty and becoming an eyesore, landlords could turn them into residential properties.

Although there undoubtedly will be issues for many properties in terms of access and suitability for incumbent business and prospective tenants, nevertheless the numbers cannot be ignored.

If landlords were able to start letting commercial properties out for residential use they can get access to Grants and tax relief as well as helping house some of the millions of Britons desperate for affordable housing. Not only will landlords be benefitting from the property been kept secure they will of course also be receiving rent, when compared to employing a security guard long term, will save them money in the long run.

As well as grants offered by some local councils there are also tax incentives in place.

Under the Flat Conversion Allowance they can get:

*100% tax relief on the eligible cost of putting a former flat back into residential use-not just the normal expenditure such as heating, wiring and the like but for new walls ,rooms and creating suitable access for the property.

*Unlike normal capital allowances, this tax relief may never be taken back if the property is kept for 7 or more years

*Note that the property is to be available for short-term letting in this context “short-Term” is for 5 years or less, and even then that may only be the initial lease period.

Looking at my local high-street I find it astonishing that more use of this generous tax relief has not been taken advantage of, surely its better than letting properties go to rack and ruin.

With national and local press highlighting these is issues it is the perfect opportunity to raise awareness ofBritain’s property scandal within your local area.

Spread the word to your local landlords of all the incentives available to them, there is only a year left to make the most of the Flat Conversion Allowance.

You can help 2012 a brighter more comfortable year forBritain’s many people in desperate need of housing.

There are plenty of websites you can visit to register your support and find out how to report empty properties in your local area.

So please lend your support to this worthwhile campaign.

I myself am off to report the empty properties surrounding my office and offer our fantastic introductory offer to new landlords who will, I am sure be letting us manage all their brand new residential properties.

It’s a win /win situation (if you’re a landlord/tenant/lettings agent/local council)

Merry Christmas and a Happy New Year.

By Jo Gibson – Property Consultant at Ideal Homes

107 Northdown Rd,

Margate

Kent

Tel: 01843 221111

Web: www.idealhomelettings.com

Email: info@idealhomelettings.com 

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Builders must reflect social trends in their pricing, says Nick Ames

It’s not easy in any shape or form to get into the housing market these days.

Cold statistics show how hard it is for ordinary families.

Halifaxsays the average price of a terrace house has risen more than any other property type in the last 10 years. It went up by £118 a week over the last decade, increasing overall by 65 per cent from £89,843 in the spring of 2001 to £151,332 in spring this year.

But it costs so much less than a detached house, which now has an average price of £273,173.

We hear a lot about affordable housing these days. When developments are approved, they tend to be because a number of such properties are included.

But these are usually small, maybe one or two bedrooms and aimed at first-time buyers.

No one who wants the market to prosper and get out of its current quagmire would have any argument with that.

But what about affordable homes for families, or for people who want to up-size?

There is another new trend afoot as generations buy together, pooling their resources and sharing care of the old and young. That’s got to be a good thing to promote the stability of the family and introduce an element of socially- aware care.

So how about some cheaper homes being made available for this sort of multi-generational occupancy?

Predictions within the industry are that homes will go on getting smaller and greener, that the living room will change function into a large multi-purpose room with cooking and eating areas, the multi-car garage will be a thing of the past, laundry rooms will get bigger and home-office space will be a must.

So there is scope for savings from developers when it comes to an initial outlay on construction.

Wouldn’t it be a good idea to pass those economies over to the buyer in the shape of a better price?

Maybe that’s one way to get things – and people – moving again.

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Warning: Anne Blenkinsop

People who are buying a property with someone else, or allowing them to move into their property, should enter in a declaration of trust or a cohabitation agreement so that their intentions are clear.

That’s the urgent advice from leading South East law firm Furley Page following a landmark House of Lords decision in the case of Kernott v Jones.

It’s estimated that more than two million couples live together in the UK, and Anne Blenkinsop, a partner in the firm’s family law team, says the decision potentially affects every unmarried cohabiting couple in England and Wales.

Anne said: “Mr Kernott and Ms Jones, who were not married, jointly bought a property in 1985. Mr Kernott left the relationship 18 years ago. Ms Jones paid the mortgage and the outgoings following their split, but the house remained in joint names.

“On the face of it, Mr Kernott was entitled to 50 per cent of the current value of the property as joint owner. Unsurprisingly, Ms Jones argued that her much greater contributions since separation should give her a bigger share.

“A district judge had awarded Ms Jones 90 per cent of the equity in the house, but the Court of Appeal ruled the proceeds should be split 50/50. Now the highest court in the land has decided that Mr Kernott’s share should be cut to just 10 per cent.

“The House of Lords has decided that the court can look at the entirety of their relationship, rather than simply the property rights that the couple agree upon when they buy the property.

“In essence this means that the court will approach property disputes between unmarried couples in a way that is more discretionary and closer to the court’s approach on divorce.

“Apart from blurring, still further, the legal distinction between marriage and cohabitation, the effect of the decision is to make the law in relation to this area much less certain.”

Anne said that legal advisers will find it much more difficult to tell their clients what they can expect to get in the event of an application to the court if the court will not automatically uphold the division that they agreed when they bought the property.

“It remains to be seen whether the test of fairness that the court will apply in this area will be similar to the principles applied in divorce, or an entirely new concept,” said Anne.

“Whatever one thinks of the rights and wrongs of the decision, more legal uncertainty can only give rise to more litigation in the courts.

“The sooner Parliament legislates either to make the rights of cohabitants the same as those of married couples or to provide clarity as to how they differ, the better it will be, not only for legal advisers but also for their poor confused clients.

“In the meantime, if you are buying a property with someone else, or allowing them to move into your property, you should enter in a declaration of trust or a cohabitation agreement.

“If you later separate from your partner you should seek legal advice at an early stage so that your intentions are made completely clear and not open to challenge at a later date if the property is not immediately sold or transferred to the other co-owner.”

* For further information, phone Anne Blenkinsop on 01227 763939, email axb@furleypage.co.uk, or visit www.furleypage.co.uk.

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