Ten Things You need to know about the Town Planning System

The British town planning system is a complex beasty at the best of times, but if you are considering development proposals or changing the use of land or buildings you may need to bear in mind one or more of the following key elements:

1    Check to see if you need planning permission. You may not!
•    Does your existing permission already allow your intended use? It’s always     worth checking
•    Is there an outstanding consent that can be implemented
•    There are certain Permitted Development Rights available for minor activities and land uses
•    There are also specific Use Classes for development between which you can change without the need for planning permission

2    Development in the Green Belt is rarely allowed.
•    Very special circumstances have to be argued
•    Generally avoid high environmental and ecological areas (SSSI’s, AONB etc)

3    Always arrange a Pre-application meeting with the Council
•    It can save you a huge amount of time and money

4    Work through the Validation Checklist and make sure you have all the  relevant information.
•    There is nothing worse than putting your application in and then finding     you need to submit more information; that you don’t have!

5    Statutory Planning Fees are chargeable, based on area and/or type of     application
•    Careful attention to the exact application boundary can save money
•    Householder applications are separate and generally cheaper

6    Development related to Listed Buildings and Conservation Areas will normally require additional permissions

7    Securing your planning permission is just the start. Make sure you satisfy all the conditions (and don’t forget Building Regulations either)

8    Advertisement Consent may be required for both illuminated and non-    illuminated signs etc
•    The regulations are complex and you will need to take care in erecting signs without permission

9    Local Authorities have extensive Enforcement powers. They can and do take action against unlawful development.
•    But always check to see if you can obtain a Lawful Development Certificate     for works or uses that meet the relevant time limits

10    Do your research, take advice, ensure you have all the information required and allow plenty of time.
•    You can rush planning but all that tends to happen is that you receive a refusal and have to start all over again

Next Time: Making Applications via the Planning Portal

Planning information supplied by Ian Butter FRICS MRTPI
From: The Rural and Urban Planning Consultancy

twitter:         @THEPLANNERMAN 
Subscribe by Email

Your property questions answered at The Big Property Forum

Want to know if you need planning permission for that new shed?  Wondering if you should reduce the price of your house or simply redecorate to sell it quicker?

The answers to these questions and more can be found on our shiny new property forum!

The Big Property Forum is a place for you to ask and answer questions and share your experience and knowledge of all things related to property.

At the moment its like a big empty room, but don´t be shy – mark out a spot for yourself, ask a question and see what happens. 
Subscribe by Email

Foxtons selling houses for 0% commission in SW London

London Estate Agency Foxtons have announced that they will charge 0% commission on house sales for people using their new South London branches in Streatham and Willesden Green reported Negotiator Magazine today.

The offer is open to the first 200 sellers in each of the branches and the houses for sale in Streatham must be sold before 4th December 2010.

Earlier this year the Guardian reported that the Agency best known for its branded Minis experienced a profit slump of 70% with debts of nearly £350m due to the housing market.

So does this bold move opening two new offices signify a confidence in the South London Housing market?

So, can you spot any foxtons houses for sale in Streatham at The Big Property List?

Footnote: You have to hand it to the online marketing department at Foxtons – whilst researching this article I Googled ‘Streatham’ and their website features at second position in Google Spain and page 1 for google.co.uk – just behind wikipedia!  Good work boys! 
Subscribe by Email

Government shake up of house price indices

The UK Government has just announced that it has asked the Office of National Statistics to investigate the coherence and comparability of house price indices..

Tax payers are currently funding two indices, produced by the Department of Communities and Local Government (DCLG) and the Land Registry.

Add in the indices produced by the RICS, major estate agents, property portals and building societies and you can begin to see why the general public gets confused as to the state of the market.

I’m all for market clarity and a shake up in the way that property is marketed and analysed.

Nobody will ever be able to predict the future of house prices but we certainly should be able to say what they have done with some degree of accuracy and consistency.

If you have a view on the usefulness of any of the current indices please do let us know and we’ll be sure to pass it on to Messieurs Cameron and Clegg.

Author Biography

Graham Downie has 25 years international property experience including longs stints at both Savills & Chesterton.  In 2003 he moved to Cognac, SW France where he now practices as a private client buying agent. He also offers freelance marketing & writing services to companies servicing the property industry.

email: info@grahamdownie.com

twitter: @cognacproperty

blog: http://cognacproperty.blogspot.com/

 
Subscribe by Email

Peek inside London’s most Sustainable Homes

If you’re interested in Sutainable Housing, architecture or design then you’ll be very interested in Open House London this Autumn when 700 houses in London will be open to the public.

The event is organised by the architecture organisation Open City and takes place over the weekend of 18-19 September 2010.

‘The initiative is a simple but powerful concept: hundreds of great buildings of all types and periods open up their doors to all, completely for FREE.  It is a truly city-wide celebration of the buildings, places and neighbourhoods where we live, work and play, and is your opportunity to get out and get under the skin of London’s amazing architecture’ says the Open House website.

The ‘open houses’ range from small private home to major lndmarks such as the BT Tower and there will be lots of events such as cycle tours, architects talks and neighbourhood walks to interest and inspire you over the weekend.

Here at The Big Property List we’re particularly interested in the Sustainable Housing element and there should be plenty of eco-homes on show boasting sustainable designs such as The Coach House, 39 Parkholme Road, Retro-eco House and Zero Carbon Loft.

If you’re visiting any of these sustainable houses over the course of the weekend, why not email your pictures and notes to admin (at) thebigpropertylist.co.uk and we’ll publish them here on our blog?

For the full list of open houses you can visit the Open House website or order a guide to see what is available near you – some venues need to be booked in advance. 
Subscribe by Email

Top 10 tips on finding and moving into a new office

Many occupiers either new to the market or looking at expansion perceive the act of moving into a new office is an easy process as simple as packing up your old office one day and moving into the new one the next. The reality however is very different and there are many common pitfalls that are easy to fall into.

1.  Finding the right office – the trick is to look everywhere. Not all offices are marketed widely and speaking to one agent will not get you an accurate feel of the market. Be prepared to invest a lot of time in this process. If you do not have the time, appoint an acquisition agent to do the leg work. They will typically have good local market knowledge and potentially access to properties and deals that aren’t widely available to the public.

(photo by mediamolecule)

2.  Negotiate lease terms 1 – I would suggest not putting all of your eggs in one basket and negotiating on two or three different properties. Every landlord has their own priorities and if they know there is competition for enquiries this can act as an effective negotiating tactic and can result in numerous tenants’ incentives or rental reductions.

3.  Negotiate lease terms 2 – there is more to a lease than the bottom line rent. Look at service charge budgets and consider agreeing a cap. The rent review clause requires specific attention as does the mechanism for activating any break clauses and the repairing obligations which represent typically one of the larger costs to tenants. Every clause has its importance within the lease and it is essential to scrutinise each and every one.

4.  Negotiate lease terms 3 – only sign a lease for the time you predict you need a property. If you are planning on growing quickly then a shorter lease will allow flexibility or consider a larger size office that will give you that space. If landlords are insistent on longer terms then try and insert a break clause that suits you. Look at the sub-letting and assigning clauses, you may want to get rid of your lease at a later date. Legal and/or professional advice is strongly recommended on these points.

5.  Consider serviced offices – once the domain of new start ups, they are now part of the flexible working culture adopted by many companies. The advantages of paying just a single bill and having reception and meeting room services together with flexible work space can be invaluable. Many providers such as Regus are currently offering very competitive rates that make these genuine options for many SME’s. When considering the cost of a property look at all of the operating costs including Business Rates, service charge and utilities as the actual cost of occupation is very different to just the rent.

Photo Source: CubeKing

6.  Legal representation – this is a corner that cannot be cut. Ensure you have a good solicitor who can keep to timescales. Too many times have tenants been left in an awkward situation as a result of the lease taking many months to complete when they assumed it would be a matter of weeks. Be realistic about how long this will take.

7.  Fitting out your new office 1 – this is a cost which is almost always greater than budgeted for. Office furniture can be acquired second hand relatively inexpensively but, from first hand experience, you get what you pay for. Better quality products will last longer and keep your staff happier. There is nothing worse than an uncomfortable office seat that an employee will be sitting on for 7 or 8 hours a day.

8.  Fitting out your office 2 – consider employing a space planner. There are many companies who will draw accurate space plans and assist with fit out and timings. This is highly advised/essential on more complex fit outs. It is also worth speaking to your landlords, they may be able to provide this service and fund it, saving you a costly capital outlay in order for you to repay it as an additional rent over several years.

9.  Accept paying two rents – unless you broker a good deal on rent free you are likely to end up paying two rents as your new office is being fitted out and your current lease is still on going. Take this into account when looking for new offices. It is not just the time you need to allow for searching, negotiating and signing the lease but also for the fit out and you do not want your business to be homeless for any period of time. Playing it conservative and safe is highly recommended.

10.  Enjoy – open a bottle of champagne, share it amongst your staff and toast the next phase in your businesses development.

Author Biography: Tim Denny is a regular contributor to The Inside Edge.  He is currently a Commercial Property Asset Manager for the London Borough of Tower Hamlets and has an extensive background in commercial property.

LinkedIn – Tim Denny

Twitter – @tim_denny 
Subscribe by Email

Commercial Property Portals lag behind Residential online

When it comes to searching for a new home most people are aware of the various offerings of the internet.  The residential property portals such as RightMove, Primelocation, Fish4Homes have, as the recent OFT (Office of Fair Trading) report says ‘changed the face of (residential) property search’

It could not be easier for users to search for residential properties and rich features from 360 degree tours to virtual refurbishment options add to the experience.  Residential property portals are used all through the market from high-value sales to low-value lettings.  However, the commercial market has not been so receptive to online developments. There are portals that are available to those looking for commercial property, however, they are significantly less advanced than their residential counterparts.

EGPropertyLink, NovaLoca and Focus are the market leaders, but compared to the residential property portals only provide the most basic of information such as photos, maps, and property description. The only steps that have really gone beyond these are individual property websites such as Quarter Mile One in Edinburgh.

But the use of the internet by the commercial property market has and continues to lag behind that of the residential market.  The reasons for this include the differing liquidity of the respective markets.  In the case of residential lettings, properties will sometimes be on the market for only a matter of days whilst it is not uncommon for commercial properties to be on the market for many months or even years. It is therefore more suitable to make use of more permanent advertising mediums as they are less likely to date.

Biography: Tim Denny is a regular contributor to The Inside Edge.  He is currently a Commercial Property Asset Manager for the London Borough of Tower Hamlets and has an extrensive background in commercial property.

LinkedIn – Tim Denny

Twitter – @tim_denny 
Subscribe by Email

To fix or not to fix, that is the question

by Andy Golding, Chief Executive of Saffron Building Society

The question that every borrower wants to know the answer to is whether to tie themselves into a fixed rate mortgage deal, and at least get certainty, or whether to take a gamble on a variable rate and hope it pays off.

The answer is all a matter of what happens to interest rates. In the strangest set of economic circumstances for at least 60 years, there are many opinions but very few facts to go on.

Economists use the phrase “balance of probability” quite a bit, so what is the balance of probability for the direction of UK base rates?

Interest rates are used by the MPC to control inflation. The basic theory being that rising rates take capacity out of the economy and falling rates put it back in. With rates at an all time low and having been so for quite some time now, plus the impact of the significant Quantitative Easing programme, both designed to stimulate the economy out of recession, you could expect that now that the UK is back into growth again, that inflation could start to rise quite rapidly.

The latest readings show that high street sales picked up more than expected and the Bank of England’s survey of regional agents showed some relaxation in the availability of credit, some signs of rising pay and continued growth in the manufacturing sector.

The target CPI measure of inflation hit an eighteen year high of 3.7% in April, though has since dropped slightly to 3.4%, is still comfortably above the target rate of 2%. The RPI measure shows the cost of living having increased by more than 5% over the last year. The rise has been largely driven by the reversal of the VAT reduction, the weakness of sterling and higher fuel costs.

However, the Bank remains confident that the CPI measure will drop back below 2% within a year, as was outlined by the Governor in his letter to the Chancellor following the inflation release. The decision to keep monetary policy on hold has been unanimous until June’s MPC meeting, where one committee member voted to raise base rate to 0.75%. The MPC are also highlighting the need to tackle the fiscal deficit, although the Governor welcomed the plans he had seen last week. A credible deficit reduction strategy would increase the likelihood of rates remaining lower for longer.

The risks to the Bank’s view are that energy prices continue to rise as they have been doing, spurred on by speculators and Chinese consumption, (whose economy has returned to double digit growth) and VAT increases introduced in the emergency budget, coupled with strong exports and a continuing relaxing of credit. These factors together would push inflation higher still and would therefore put pressure on the Bank to raise rates.

So do you fix or not? Rates could rise quicker that the Bank are currently predicting. Probably not much, if at all in 2010, but potentially in 2011.

As a mortgage borrower, fixing now for, say, 5 years provides certainty of price. Fixed rates are unlikely to get any cheaper.

That said even best buy fixed rate mortgages are significantly more expensive than best buy tracker or variable rates. If Mervyn King is right, you will take a hit on additional cost unnecessarily. Either way it’s a gamble. But even at 50/50 odds, ask yourself whether you could afford your mortgage if rates went up 3.5%. On a £150,000 interest only loan that is an increase of £437.50 per month!

There is no right answer, which is why Saffron offer both fixed and tracker mortgages in order that borrowers can choose whichever mortgage they feel most comfortable with. The advice we give is always to consider what you could afford if your payments increased, and whether that increase would be unfortunate or unfeasible for your circumstances.

Saffron Building Society is a regional building society and has been providing savings accounts and mortgages to communities in the East of England for over 160 years. They offer a range of fixed rate mortgages and tracker mortgages. They have over 120,000 members and are the ‘most followed’ Building Society on Twitter! Visit us at www.saffronbs.co.uk or follow us @SaffronBS

 
Subscribe by Email

Is now the right time to buy an Overseas Property?

An overseas property investment is a unique investment and unlike buying property at home. Overseas buyers are generally buying a dream and not a property as this is what the bulk of this market is all about.

Rightmove Overseas recently reported that 42% of the searches on its site were from people that want a permanent relocation, compared with only 12% who were looking at pure investment. Some people, perhaps understandably, often get wrapped up in the quantitative world of rental yields and capital gains and what is going on in the marketplace.  However, experience shows that about 85% of the people that we, as a company, deal with are looking at a lifestyle investment.

One of our clients at Altlas International recently broke down in tears at the thought of buying a property in Spain. It had been her life long dream to do so and it was humbling to see an outpouring of emotion when she realised she could now afford to realise her dream having finally retired.

Therefore I always say it is the right time to buy Overseas Property, but people have to look at their own situation to work out whether it is the right time for them. Every day now sees the market strengthening across Europe with exchange rates strengthening almost daily (the pound is at a 20 month high against the Euro), property search figures show far higher search rates than last year (Atlas International search figures show a 35% increase on the same period last year) and sales increasing month on month. The Ministry of Housing in Spain for example has recently reported property sales in the first quarter of 2010 were 7% higher than the same period last year and 17% higher than the last quarter of 2009.

The Overseas Property market is incredibly broad what with a huge variety of countries on offer and therefore there will always be winners and losers. However, certainly the winner at the moment is the market itself. People are regaining confidence and certainly we are seeing more of the attitude “if we are going to have to endure a recession we would rather spend it somewhere hot”

James Dearsley is the European Sales Manager of Atlas International, a family firm who have been involved in the Overseas Property Business for over 30 years now and have helped move more than 75,000 people into their dream homes abroad. For more information about the company visit our website: www.atlasinternational.com 
Subscribe by Email

The question on everyone’s lips – is now a good time to buy?

Following the emergency budget last week, many homeowners and landlords are picking through the new factors that have been thrown in to the to-buy-or-not-to-buy conundrum.

A few reassuring points remain:

• The new Government have some measures in place to tackle the wider fiscal issues over time.
• The public sector has scope to cut costs without dramatically pushing up unemployment which should keep demand healthy.
• Prices will be stable or only grow slowly for a fair while yet, allowing incomes and house prices to get that bit more comfortable in their relationship and give people time to clear other debt.
• We are still a nation of aspirant homeowners and property should remain a viable investment; and certainly the only one you can live in!

What about first time buyers?

Many people believe that house prices are unlikely to reduce further, so now could be a good time to take that step on to the first rung of home ownership. The biggest barrier facing first time buyers is getting an affordable mortgage and a big enough deposit.

For us, that’s where the regional building society can help. Knowledge of the local area and manually underwritten mortgages makes Saffron able to help first time buyers in our community. And that extra guidance and support from your mortgage lender makes a real difference when taking out your first mortgage.

What will happen to interest rates?

This is a question which we ask ourselves regularly. It’s a difficult one to call – and though there have been some murmurs that, considering the rise in inflation, the Bank of England ought to lift base rate off the floor, they’ve not moved yet, and when it does, it’s unlikely to be dramatic.

Saffron is prepared for base rate to remain at 0.5% throughout 2010 and we don’t anticipate it rising by more than a percent or so in 2011. It’s quite a conservative projection, but we have to play it safe and reforecast regularly as the climate changes.

Ultimately, though, this is all based on conjecture and opinion. To help you make up your own minds, here are a few facts:

• For the first time since the Thatcher days the percentage of people owning a home in the UK has declined.
• This recession was worse than the previous 2 – GDP fell for 6 consecutive quarters by 6% peak to trough, where as in 1980/81 and 1991/92 it fell 3.8% and 2.5% respectively.
• Industry faired better this time around, keeping more people in work – with unemployment peaking at 5% versus 1980/81 at 10.3% and 1991/92 at 9.9%.
• House price falls were bigger and quicker this time around with a range of 7 – 33%, against ranges of 0 – 12% in1980/81 and 0 – 15% in 1991/92.
• Low interest rates are helping keep repossessions low being at a peak of 6% pre this recession against 15% in both the 80’s and 90’s.

This article was written for thebigpropertylist.co.uk by Michelle Monck DipM ACIM, Head of Marketing at Saffron Building Society.

Saffron Building society is a regional building society that has been providing savings accounts and mortgages to communities in the East of England for over 160 years. They offer a range of fixed rate mortgages and tracker mortgages. They have over 120,000 members and are the ‘most followed’ Building Society on Twitter! Visit their website at www.saffronbs.co.uk or follow them @SaffronBS 
Subscribe by Email