30 December 2007

2007 UK property market review

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

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

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

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

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

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

Best wishes
Laurent


January 2007

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

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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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


Laurent Stadelmann
Managing Director

Chez-Vous HomeSearch
Removing stress from the property process!

Property Finder / Relocation Services / Negotiation Service / Location Reports

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

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02 December 2007

Extension of HIPs to all properties

On 22 November 2007 the Government announced that 1 & 2 bedroom properties put on the market in England and Wales on or after 14 December 2007 must have a Home Information Pack (HIP).

A Pack must contain at least the following (or if any are missing, the Index should explain why):

  • An Index of contents
  • An Energy Performance Certificate
  • A sale statement
  • Evidence of title (for registered and unregistered properties)
  • SearchesLeasehold/commonhold documents, where appropriate.

Any home that was already on the market on the relevant commencement date (1 August 2007 for sales of homes with four or more bedrooms; 10 September 2007 for those with three or more bedrooms and 14 December for all properties) does not need to have a HIP.

To find out more about Home Information Packs, visit www.homeinformationpacks.gov.uk

It will be interesting to see what impact the complete roll out of HIPs will have on purchasing behaviour.

Laurent Stadelmann
Managing Director

Chez-Vous HomeSearch
Removing stress from the property process!

Property Finder / Relocation Services / Negotiation Service / Location Reports

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

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