The Inside Edge
Weekly property round-up – 7 September 09
Every week we give you a selection of the best property articles from the national newspapers, so you won’t miss a thing.
Interest rates ‘could rise sharply early next year’
Interest rates could start to rise early next year – and by more than in previous cycles, according to an economist at a City fund manager.
Richard Evans of The Telegraph discusses a blog post by Simon Ward of Henderson New Star which puts forward the view that the Bank of England may have to raise interest rates sooner and in bigger increments than previously thought due to the nature of forecasting inflation 2 years ahead and the concern that it would rise above the government’s 2 pc target in two years’ time.
Letting out a spare room to lodgers is more popular than ever
Online services such as crashpadder.com and mondaytofriday.com are helping landlords to find room-mates and lodgers who are enjoying the company as well as the extra money coming in. Some good tips for would be rent-a roomers as well as advice about the government tax breaks under the rent a room scheme. reports Zoe Dare Hall, Daily Telegraph.
Tired of city life? Find yourself a smallholding and get in touch with your rustic side
Graham Norwood introduces a couple who represent a growing trend of British ‘greenshifters’ who are shunning the city life in favour of a smallholding in the country, when the ability to rear your own sheep and turn the earth becomes more important than the buzz of the high street.
£5.5m Poole house that was built in a Frankfurt warehouse
A former nightclub boss says he saved 20% on building his house by having it made in Germany before being shipped over and put together in the millionaire’s playground in Poole, Dorest. The house is based on designs by Frank Lloyd Wright, the American architect and build by German engineers Bau-Werk in their factory in Frankfurt.
By Duncan Farmer, Mail on Sunday
The UK property market one year after the collapse of Lehman Brothers
For the Telegraph, Caroline McGhie charts the toughest year on record for the property market, triggered by The Lehman Brothers on 15 September 2008. Over the last 12 months we have seen price drops of up to 40%, sales volumes falling by 60% and as a result some 30% of Estate Agents losing their jobs – viewed through the eyes of a young London couple who have come out the other side.
Buy to let investors face legal action
By Lucy Warwick-Ching, FT.com
Buy-to-let investors who paid cash deposits on new build flats are now struggling to find finance to complete deals and are now facing legal action from developers. The housing market slump has meant that the value of such properties has fallen below that agreed off-plan and so investors are attempting to renege on agreements to limit their losses.
First time buyer enquiries on the rise
By Magda Ali, FT.com
The search engine unbiased.co.uk has released a report that says that requests for advice on mortgages for first time buyers has increased to 43 per cent in July whereas remortgage requests have decreased by around a third.
http://www.ft.com/cms/s/2/31c91916-96f0-11de-9c24-00144feabdc0.html
Mortgage rates fall but there are still catches
Banks are introducing record low rates, but borrowers can only get the best deals by switching current accounts
Elizabeth Colman (The Times) discusses HSBC’s headline grabbing 1.99% mortgage but says it’s out of reach for first time buyers due to high deposit requirements (40%) and arrangement fees. Other deals are available to those willing to switch other bank products like investments and current accounts to take advantage of offers from banks attempting to cross-sell other products.
Self-cert mortgages disappear from market
Jennifer Hill, The Times, says that Loans for people who are self-employed or have irregular income have almost dried up as banks look to reduce their risk in what is perceived to be a high risk area.
UK economic outlook ‘grim’, warns BCC
The British Chambers of Commerce warned on Sunday that the UK still faces a ‘grim’ econiomic outlook. Roger Blitz reports in today’s FT.com.
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