More Embarrassment Over HIPs
Looks like the Government is going to end up with a whole lot more egg on their face over this one.
This week saw the National Audit Office announce its intentions to investigate how the Government handled the implementation of HIPs. Turns out that the supposedly independent consultants advising the Government had considerable shares in companies that would directly profit from HIP’s being given a green light.
Anyway, this legislation seems as if it’s here to stay (for the time being at least) and it’s got a new target in its sights. On September 10th all 3-bedroom property brought to market will need to have a HIP. According to Rightmove, 80,000 3bed houses come up for sale every month and this is going to put enormous pressure on HIP suppliers, Domestic Energy Inspectors and Local Councils.
Is the industry really ready to cope or has the Government made yet another mistake by moving too fast? I know what I’d put my money on.
Buy to Let – Can it Really Still Be Flavour of The Month?
Even with interest rates at their highest level in 6 years and rental yields at a new low, The Council of Mortgage Lenders has released figures showing that in the first half of 2007 171,800 new Buy-to-Let mortgages worth (£21.2 billion) were taken out. That accounts for a staggering 10% of the nations total mortgage balance, up 7% from five years ago.
It’s seems that against the doom and gloom of the financial markets investors are still potty for property.
The word on the street is that landlords are reporting rising rents and shorter void periods. With repossession rates at their highest level in 5 years, savvy landlords are having a wonderful time picking up properties at discounted prices.
Lenders are also showing their confidence in this asset class as the typical aggregated loan amount they’re willing to hand over to investors currently stands at £2.5million.
Is The Bubble About to Burst?
Optimistic homebuyers and peddlers of investment club memberships have a mantra that they live by and it goes, “In the long term property prices only go up!”
Now that pretty unspectacular comment on historic market trend is all well and good but what about now and for the next year or two?
If you’re considering buying a new home this is the timeframe that really matters! Well, unfortunately if we take a look at the figures, now could be when the bubble finally bursts.
Figures from the Land Registry are showing that prices are barely rising throughout the country. In fact in Wales, the West Midlands, Yorkshire and Humberside they have actually fallen.
This has been backed-up by other property price analysts and even London has started to show signs that prices are slipping downhill.
More worry news comes from The Royal Institute of Chartered Surveyors. They say that the number of buyers coming into the market has been falling every month for the past eight months.
Set against their figures that show each month more and more houses are being offered for sale, we have a classic case of supply outstripping demand on our hands. I think we all know what that means?
It’s already clear that the market is weakening, mortgage arrears are up as are repossession rates and for those homeowners that are stretching themselves financially, negative equity is going to become a phrase that keeps them awake at night.
If you’re in the market for a new home maybe now is the time to consider visiting your local letting agent instead of the estate agent.