Macquarie Bank is providing the £200 million warehouse facility. The Group’s intention will be to use the facility to warehouse loans prior to arranging term funding in the mortgage-backed securitisation markets, where the Group has considerable experience stretching back over 20 years. There has been increasing evidence of a recovery in the asset-backed market with numerous securitisations being launched by a number of major UK and European banks.

Paragon has held bond investor roadshows during 2010 and there is strong investor demand for Paragon residential mortgage-backed securities given the excellent performance of its historical mortgage assets. The number of accounts more than three months in arrears across Paragon’s portfolio of buy-to-let loan assets has continued to fall and is currently 0.86% of the book. This is significantly below buy-to-let market peers and also the wider mortgage market.

Lending strategy
It is Paragon’s aim to return to its market-leading position in the buy-to-let sector, specifically targeting professional landlords. This is an area of the market currently under served by buy-to-let lenders and one in which Paragon is well positioned given its expertise and experience in buy-to-let lending.

Paragon will offer a range of buy-to-let products through the Paragon Mortgages brand.
Paragon will continue to maintain a prudent and risk-averse approach to new lending, placing greater value on long-term customer relationships, credit quality and profitable products rather than simply market share.

This strategy has proved successful for Paragon and is a driving factor in the excellent credit performance of the Group’s assets.
During the eleven months to 31 August 2010, only £231.1 million of Paragon’s buy-to-let loan book has redeemed and the size of the warehouse facility, and its revolving nature, will provide the basis to support the expansion of the lending business.

Buy-to-let market
Competition in the buy-to-let mortgage market has reduced dramatically since the start of the credit crunch and the new lending sector has been dominated by just two lenders, accounting for up to 80% of new business written.

The number of available buy-to-let products has fallen from over 3,600 in July 2007 to under 280 in September 2010. Many of these products are focused towards the novice or small scale landlord, failing to cater for professional landlords’ more complex financial needs.

Strategy
The acquisition of loan portfolios and loan servicing of third party clients will remain a core part of the strategy going forward.

Trading
In addition to announcing its return to new lending, Paragon also today gave a trading update for the eleven months to 31 August 2010. The Board expects operating profits (before exceptional and fair value items) for the year to 30 September 2010 to be above the current market consensus forecast (£58.2 million) and around the upper end of analysts’ current expectations, which range from £40.5 million to £65.0 million. In addition, as previously disclosed, pre-tax profits will include an exceptional profit of £5.7 million on the purchase of Group securitised bonds.

Commenting on today’s announcement, Nigel Terrington, Paragon Group’s Chief Executive says:
“Despite the difficult environment over the past three years, Paragon has remained steadfast in its commitment to return the business to new
lending when conditions permitted.

“We are delighted to have secured funding on acceptable and sustainable terms to enable us to return to new lending and to work with Macquarie on this significant transaction. They are an ambitious and innovative institution and this transaction demonstrates clear evidence of their intentions to develop a leading role in the UK debt and equity markets.

“This is not only a significant development for Paragon; it is also significant for the wholesale funding and specialist lending markets. Paragon is the first independent non-deposit taking mortgage lender to secure funding to enable it to return to new lending. This shows that investor confidence is returning and the wholesale funding markets are recovering.

“Competition in the mortgage market has been sorely lacking, particularly as specialist lenders have largely been unable to secure funding or Government support to enable them to compete against high street lenders. Nowhere is this more evident than in the private rented sector where tenant demand is strong and expected to grow.

This is an increasingly important part of the UK housing market and competition is vital for a healthy and vibrant buy-to-let market and we aim to provide that competition.”
ENDS

For further information contact:
Paragon: Nigel Terrington
Chief Executive
0121 712 2024
Fishburn Hedges Andy Berry 020 7544 3044 / 07767 374421
Jane Padgham 020 7544 3061
Michelle James 020 7544 3056

* seasonally adjusted

Commenting on the figures Martin Gahbauer, Nationwide’s Chief Economist, said:

“The price of a typical UK property rose by a seasonally adjusted 0.5% month-on-month (m/m) in May, following a 1.1% increase in April. The smoother 3 month on 3 month rate of increase rose from 1.1% in April to 1.7%, as February’s fall in house prices dropped out of the most recent three month average. The annual rate of house price inflation dropped from 10.5% to 9.8%, which reflects the weaker pace of increase in May 2010 relative to May 2009. Since reaching a trough in February 2009 – following a drop of 19.3% from their October 2007 peak – house prices have risen by 12.2% and are now just 9.5% below the October 2007 peak.

“Housing market conditions remain characterised by thin transaction volumes and a relative scarcity of properties for sale, despite a slow return of more sellers in recent months. The current supply-demand balance on the market is still consistent with relatively stable to modestly upward trending prices.”

Impact of capital gains tax changes on house prices depends on timing of implementation

“The coalition agreement between the Conservatives and Liberal Democrats contains plans to increase the rate of capital gains tax (CGT) charged on the disposal of non-business assets, potentially including second homes and buy-to-let investment properties. Currently the CGT rate on such assets is 18%, and the coalition plans are to raise the rate to a level “similar or close to those applied to income.” Precise details, however, will not be known until the Emergency Budget announcement on 22 June.

“With regard to what the short-term impact will be on the housing market and house prices, the key question is around the timing and implementation of any CGT increase. If there is a significant time lag between the announcement of the increase and its actual implementation, then some second home owners and buy-to-let landlords may decide to sell in advance of the higher rate being introduced. Such a development could lead the supply-demand balance to shift more in favour of buyers and relieve the current upward pressure on house prices. However, it is difficult to know with any precision how many people would bring forward a decision to sell.

“The incentive to try to beat the higher tax rate is most pressing for those who have owned their properties for a relatively long period of time and therefore have relatively large unrealised gains. Conversely, those who bought their second homes or investment property within the last five years have little incentive to sell early in order to beat the tax change. House prices have only risen back to their mid-2006 level and the first £10,100 of capital gains is currently tax free.

“If the new rate comes into effect immediately on 22 June, then supply conditions are unlikely to be affected materially as any potential sellers would not have time to react.

“There are some examples of where tax changes have had a significant short-term impact on the housing market. Most prominent was the March 1988 announcement to end double Mortgage Interest Relief At Source (MIRAS) for cohabiting couples. The implementation of the tax change was postponed until August of that year, which prompted a rush of buyers to try to beat the deadline. The result was a temporary surge in property values, with house prices increasing by 18% between Q1 1988 and Q3 1988 alone.

“However, the most recent change in CGT rates announced in the 2007 Pre-Budget Report did not have any discernable impact on the supply of property on the market. At the time, the existing CGT rates of 24-40% – depending on taper relief and income status – were cut to a flat rate of 18%. New instructions to sell property remained very low even after the tax changes were introduced, although this may also have been due to the very weak market conditions prevailing at the time.”

Monthly UK House Price Statistics

* seasonally adjusted

Commenting on the figures Martin Gahbauer, Nationwide’s Chief Economist, said:

The price of a typical UK property rose by a seasonally adjusted 1.0% month-on-month (m/m) in April, leaving house prices 10.5% higher than a year earlier. Over the lifetime of the last Parliament (May 2005 to April 2010), house prices have risen by 6.7%. This compares to a 13.5% increase in the consumer price index, the official target measure of inflation.

April’s figures show the first double-digit annual growth in UK house prices since June 2007. The year-on-year rate in this month’s figures, however, received an additional boost from the fact that April 2009 was one of the weaker months last year. Given the very strong performance of house prices from May 2009 onwards, it will take monthly increases in excess of 1% for the annual rate of inflation to be maintained in double digits going forward. The smoother three month on three month rate of inflation edged down further from 1.5% in March to 1.1% in April, which primarily reflects the impact of February’s 1.0% decline in house prices. April’s figures leave UK house prices exactly 10% below the October 2007 peak.

For further information please see  April 2010 report (PDF 64KB).

The NAEA has long campaigned for a major rethink on stamp duty – which it believes to be a tax on aspiration. Today in the final Budget before the election, Mr Darling listened and raised the threshold to £250,000 from midnight tonight.

Peter Bolton King, chief executive of the NAEA, said: “For thousands of first time buyers the dream of getting onto the property ladder was slipping out of reach.

“This announcement has added a new rung to the property ladder, one within reach of thousands of young families.

“We have long argued that stamp duty is a tax on aspiration that smothered the natural demand of the market. We still believe that more reform is needed and there is more work to be done, but this is a good first step – a major victory for first time buyers.”

The NAEA has for years called for a major reform of stamp duty land tax, beginning with the threshold being raised. Most recently in the run up to this Budget the association led a coalition of property organisations in calling for reform, under the banner of the 1808 campaign. More information on the 1808 campaign can be found at http://www.nfopp.co.uk/1808/

ENDS

According to Iranzo, the banks are sitting on 100,000 of Spain’s 700,000 unsold new homes, which they will now have to dump on the market. Thanks to new rules from the Bank of Spain forcing banks to increase their provisions on unsold properties, which took effect in January, Iranzo also expects the banks to drop their prices in search of sales. He pointed out that banks need to improve their balance sheets by selling property, though it is unclear how selling property at a loss will help do that.

What green shoots?

There has been some talk recently in the mainstream Spanish media about an incipient recovery in the housing market, but according to Iranzo the housing sector will get “quite a lot worse” this year, thanks to the recession and increasing unemployment. “The outlook doesn’t favour the house purchases,” remarked Iranzo. He warned that prices still have room to fall, and that interest rates will go up towards the end of the year, putting further pressure on prices.

“Never again”

A glut of newly-built properties isn’t the only problem the market is having to deal with. Demand has also retrenched massively, and may not pick up until 2012 or 2013, says Iranzo.

When does he expect demand to return to the boom levels of 700,000 homes a year? “Never again,” says Iranzo, who expects demand to stabilise around 450,000 homes per year in 2012.

It is important to note that Iranzo is basically talking about the market for primary housing in and around Spanish cities, not holiday homes on the coast. Some experts expect the quality holiday home market to recover much quicker, thanks to supply limits and internationally diversified demand.

Link to original article and more Spanish property information

The latest Bank of England mortgage data published today confirms the likelihood that there may have been a “bunching” of house purchase transactions in December to beat the stamp duty concession deadline.The gross lending total of £13.4 bn in December 2009 was in line with the CML’s estimate (£13.5 bn) and seems to confirm the CML’s view that much activity was “rushed through” to beat the stamp duty deadline. Gross lending totalled £143.5 bn in 2009.

Net lending remains up from the near stagnation in the middle of the year. For 2009 as a whole net lending totalled £11.5 bn. This was the lowest level on record (back to 1987), but higher than the CML forecast of £8 bn. It was largely driven by the relative strength of house purchase activity, which picked up over the latter part of the year, and weak levels of repayments. The CML sees little if any evidence that households, in aggregate, are using low interest rates to pay down mortgage debt more quickly.

CML economist Paul Samter said:

“These figures confirm that the mortgage market ended 2009 in much better shape than it started, but it still looks like a slow haul back to meaningful levels of activity. It should be no surprise if January and February this year appear particularly slow, if we are correct in our view that many buyers rushed to beat the stamp duty concession deadline in December.”

Notes to editors

1. The December lending data is available from the Bank of England website.

Contact details

Name: Sue Anderson

Tel: 020 7438 8924

Email: sue.anderson@cml.org.uk

Name: Bernard Clarke

Tel: 020 7438 8923

Email: bernard.clarke@cml.org.uk

Name: Jayne Chichester

Tel: 020 7438 8922

Email: jayne.chichester@cml.org.uk

Surveyors in the West Midlands, East Midlands, Wales and Scotland predict that the end of the holiday will have a “detrimental effect” in areas that are yet to see a recovery from the recession, and widely expect to see a drop in market activity when the threshold reverts back to its previous ways. The temporary stamp duty holiday was implemented in September 2008 and will finish at the end of the year.

The 1% tax will be reintroduced for properties sold over £125,000 compared with the £175,000 currently in operation, with The Royal Institution of Chartered Surveyors calling for the tax to be restructured. The Council of Mortgage Lenders calculates that 132,500 houses that were bought funded with a mortgage had escaped paying stamp duty in the past year.

“This is one of those situations where we will have to wait and see what the long term affects are to the housing market, but there can be no doubt that the stamp duty holiday has been a huge help to various regions in the UK,” says Laurence Smith of Decision Homebuyers. “People looking to sell a house quick or who are looking to buy a property are now working under different market conditions, and will have to cater their budgets accordingly as a result.”

To find out more about Decision Homebuyers and their services:
Please call 08456 341 456
or visit: http://www.decisionhomebuyers.co.uk/

About Decision Homebuyers:
Established in 2006 and specialising in fast property purchase, Decision Homebuyers are experts in their field. Decision Homebuyers can buy your house fast and guarantee to make cash offers on all types of residential and commercial property, no matter what the condition.

A recent study of more than 3,000 potential first time buyers reveals that 28 per cent feel they will need to save for at least five years before finally getting the keys to their own home.

One in 10 respondents have been saving for more than five years and still do not have enough deposit, while 30 per cent have no savings to put towards a deposit at all.

However, there is still help at hand, with new homes builder Stamford Homes offering its own incentives as well as Government shared equity schemes to get first time buyers onto the housing ladder.

These include;
Easystart where customers can own 100 per cent of a brand-new home for 80 per cent of the price with just five per deposit required.

HomeBuy Direct a Government home purchase scheme to help first time buyers onto the property ladder where you own 100 per cent of your home for just 70 per cent of the price, and just five per cent deposit required. This offer was to come to an end in March 2010 but has now been extended until September 2010 and has limited availability.

Stamp duty exemption on homes under £175,000. However, the Government’s exemption holiday ends on December 31.
Stamford Homes regional sales and marketing director Peter Bond said: “While the statistics by themselves do make fairly depressing reading, it is still encouraging that so many people are thinking about buying a home.

“There is evidence that many of our first time buyers have been able to afford their dream home through one of our many incentives schemes available across our developments.

“We recognise that raising a deposit does have its difficulties, but there are other scheme which can take away that pressure of the house buying process.”

For details of new homes around the region, visit www.stamford-homes.co.uk

- ENDS -

Notes to the Editor:
Stamford Homes operates throughout the East Midlands and Lincolnshire and forms a part of Galliford Try’s Housebuilding Division: Galliford Try Homes.
www.stamford-homes.co.uk

Galliford Try Homes operates through four strong regional brands: Linden Homes, Stamford Homes, Midas Homes, and Gerald Wood Homes specialising in brownfield development. The business is capable of developing over 3,000 homes per year, covering the entire region from the West Country to Lincolnshire and the South-East.
www.gallifordtryhomes.co.uk

For further information please contact:

Cetti Long
Media Matters PR
Stamford Homes
Tel: 01733 371363.
E-mail: cetti@mediamatters-pr.co.uk

However, for potential buyers who are putting off moving until after Christmas, buying a brand new dream home is now easier, and less expensive, than you think.

Stamford Homes can help curb the cost of moving to many of its developments in and around the region – with savings and incentives to help customers make their money travel further.

Among the most popular are Stamford Homes’ own EasyStart scheme, and the Government’s shared equity HomeBuy Direct incentive.

Both of these are currently available on selected homes across the Midlands’ developments. However, as the HomeBuy Direct initiative – which has already helped numbers Stamford Homes customers to afford their dream home – comes to and end next September but has limited availability, so now is the time to act.

These include;
- Easystart where customers can own 100 per cent of a brand-new home for 80 per cent of the price with just five per deposit required.

- HomeBuy Direct a Government home purchase scheme to help first time buyers onto the property ladder where you own 100 per cent of your home for just 70 per cent of the price, and just five per cent deposit required. This offer has limited availability.

Stamford Homes regional sales and marketing director Peter Bond said: “The housing market doesn’t seem to be following tradition of late – whereby all goes quite at the start of December until the New Year.

“We are experiencing high levels of interest and sustained reservations as serious buyers who recognise just what amazing incentives are on offer to help them move efficiently and cost-effectively.”

For details of new homes around the region, visit www.stamford-homes.co.uk

Pic cap
There is still time to put a Stamford home on your Christmas wish list.

- ENDS -

Notes to the Editor:
Stamford Homes operates throughout the East Midlands and Lincolnshire and forms a part of Galliford Try’s Housebuilding Division: Galliford Try Homes.
www.stamford-homes.co.uk

Galliford Try Homes operates through four strong regional brands: Linden Homes, Stamford Homes, Midas Homes, and Gerald Wood Homes specialising in brownfield development. The business is capable of developing over 3,000 homes per year, covering the entire region from the West Country to Lincolnshire and the South-East.
www.gallifordtryhomes.co.uk

For further information please contact:

Cetti Long
Media Matters PR
Stamford Homes
Tel: 01733 371363.
E-mail: cetti@mediamatters-pr.co.uk

A serious debate is which one will give them the best value for money – a new or second-hand home?

Re-decorating, installing a new bathroom or kitchen and laying new carpets are just some of the DIY jobs many of us plan when we move into a ‘used’ home.

However, buying a new home can cut down the cost and also put customers in the driving seat when it comes to those finishing touches – and save them a small fortune in domestic repairs.

And there is no better place to buy a brand new home that in rural Lincolnshire, particularly in the market towns of Wragby and Horncastle – where prices for a three-bedroom terraced home start from just £149,995.

Now is a great time to buy a brand new dream home at these locations.

As well as prices being at their most affordable for years, customers can benefit from the last throes of the Stamp Duty exemption holiday on homes below £175,000 and many Stamford Homes money-saving incentives to help existing home owners and first time buyers.

New homes also offer fantastic value in terms of energy efficiency, security and design – both internal and external. They are a blank canvas allowing customers to stamp their own mark and personality on what is the most important purchase of their life.

Other benefits include:

- Less maintenance – old homes may have more character but they may also need more costly things doing to them, which could see the owner paying out for items such like new guttering, replacement windows or extra roof insulation.

- Energy efficiency. New homes are well insulated, and include double-glazing as standard, making them cheaper to run than older homes. All new homes are fitted with a water meter. Studies show that new homes, on average, are four times more energy efficient that older homes, so producing lower energy bills.

- A blank canvas – depending on build stage of the new home, you have an option of choosing kitchen units, worktops and wall tiles – you can even pick your own carpets with certain incentives!

- All of Stamford homes’ new homes come with an insurance-backed 10-year warranty from the National House Building Council, giving new owners real peace of mind. That’s something else you simply can’t get when buying second-hand.

Stamford Homes regional sales and marketing director Peter Bond said: “In today’s market place, with so many incentives available, the argument for buying new as opposed to old has never been greater. We have some amazing homes and incentives at our Lincolnshire developments – with reservations now being taken well into next year.”

For details on prices and availability at the Bell’s Yard development in Horncastle and Carpenter’s Lodge in Wragby, visit www.stamford-homes.co.uk

Pic cap
The benefits of buying a brand new home are endless – and there are plenty to choose from with Stamford Homes in Horncastle and Wragby.

- ENDS -

Notes to the Editor:
Stamford Homes operates throughout the East Midlands and Lincolnshire and forms a part of Galliford Try’s Housebuilding Division: Galliford Try Homes.
www.stamford-homes.co.uk

Galliford Try Homes operates through four strong regional brands: Linden Homes, Stamford Homes, Midas Homes, and Gerald Wood Homes specialising in brownfield development. The business is capable of developing over 3,000 homes per year, covering the entire region from the West Country to Lincolnshire and the South-East.
www.gallifordtryhomes.co.uk

For further information please contact:

Cetti Long
Media Matters PR
Stamford Homes
Tel: 01733 371363.
E-mail: cetti@mediamatters-pr.co.uk

“We have seen thousands of people in need of the best relocation services. People out there used to relocate because of many reasons which are good or bad. Either way, relocation is a common part of life that cannot be avoided in this modern planet” says Yossarian Smythe of Beemoved removals.
They said it right, relocation is an indispensable part of everyone’s life and there are many relocation service providers out there who take advantage of this demand. Some of the service providers demand huge cash for providing the service and some others just swindle the people’s money and provide very poor quality relocation services.
Thankfully there are at least a few professionals like Beemovedremovals to do the job right.

Speaking about the special offer provided at Beemovedremovals, Yossarian Smythe said,
“People around the planet are really having a hard time now because of the Global recession. People are looking for savings in anything and everything. The relocation services are no exemption. In fact people are in desperate need of the relocation services now because of the job cuts and the need to shift to new places to find a job. These people will be in need of temporary storage of there belongings till they settle down again. We understand that the financial condition of our clients won’t be good at this time and that is the reason why we offer extra discounts for the storage needs contracted for more than 6 months.”

Speaking on the move, Yossarian Smythe said,
“Though we have announced this offer, there will be no degradation in the quality of our service. The 24 hour package monitoring system and temperature control will still be provided for the storage solutions. We hope that there are many people out there who can get greatly benefited with this discount. ”

About Beemovedremovals

Beemoved Removals is a local removal firm catering for the south of England. They have been offering the state of the art storage solutions for the people on the move. For more information, visit http://www.beemovedremovals.com

Press Release Contact Details:

Contact:
BeeMoved
2-16 Coombe Road,
Brighton,
BN2 4EA
01273 20 40 98

###

The annual change stands at minus 3.4 per cent. This is the sixth month in a row in which the fall in annual change has decreased. The average house price in England and Wales is now £159,546.

All regions in England and Wales experienced a decrease in their average property values over the last 12 months. The region with the most significant annual price fall was the West Midlands with a movement of  minus 6.3 per cent. The North West experienced the greatest monthly rise with a movement of 1.9 per cent. Wales was the region with the most significant monthly price fall with a movement of minus 2.3 per cent.

The most up-to-date figures available show that during August 2009 the number of completed house sales in England and Wales rose by 11 per cent to 53,236 from 48,109 in August 2008. Transaction volumes, while no longer falling at 2007 rates, remain relatively low.

For more information and to view the report in full, visit www1.landregistry.gov.uk/houseprices/

Notes

1. Since 2006, Land Registry’s House Price Index (HPI), which is available free at www1.landregistry.gov.uk/houseprices/ has gathered its own momentum to become a leading indicator of property movement within England and Wales. It is widely viewed as “the most accurate barometer of the housing market”.

2. The HPI is published on the twentieth working day of each month. The November index will be published at www1.landregistry.gov.uk/houseprices/ at 11:00 hours on Friday 30 December 2009.

3. The HPI uses a sample size that is larger than all other statistical measures available. It is calculated using Land Registry’s dataset of all residential property sales completed in England and Wales since January 1995.

4. Land Registry’s dataset contains details on 15 million residential transactions. Of these, over five million are identifiable matched pairs, providing the basis for the repeat sales regression analysis used to complete the index. This technique of quality adjustment ensures an “apples to apples” comparison between properties.

5. With the largest transactional database of its kind detailing over 22 million titles, Land Registry underpins the economy by safeguarding ownership of many billions of pounds worth of property.

6. As a government department established in 1862, executive agency and trading fund responsible to the Lord Chancellor and Secretary of State for Justice, Land Registry keeps and maintains the Land Register for England and Wales. The Land Register has been an open document since 1990.

7. For further information about Land Registry visit www.landregistry.gov.uk

Contacts

Marion Shelley 020 7166 4543

marion.shelley@landregistry.gsi.gov.uk
Esther McWatters 020 7166 4487

esther.mcwatters@landregistry.gsi.gov.uk
Press Office 020 7166 4215

auctionmove.co.uk will provide estate agents with the opportunity to add an auction arm to their existing business, without impacting on commission.

Estate agents will also be able to have a branded presence on auctionmove.co.uk, generating valuable exposure for both the brand and for properties that are proving difficult to sell through the traditional estate agent route.

In the same way that a traditional auction works, auctionmove.co.uk will invite motivated purchasers to bid on a carefully chosen selection of residential and commercial properties, as well as land and development opportunities.

Buyers can bid anywhere, at anytime and at the end of the auction, if the reserve price is met, the highest bid wins the property.

auctionmove.co.uk’s experienced staff will always be on hand to help with any enquiries relating to the properties or the auctions.

Promising a competitive bidding process and sales that will be completed within 28 days, auctionmove.co.uk is a useful tool for buying and selling property online, whilst also being extremely helpful for estate agents.

Every property on auctionmove.co.uk is also advertised on rightmove.co.uk, the UK’s largest property website, which provides a steady throughput of traffic to the website.

Lisa Obertelli, Sales Director of auctionmove.co.uk, said: “We hope that by providing this service, estate agents will feel they can place their properties on our website. It allows an additional form of advertising for estate agents who are looking for new promotional avenues in a difficult market, with our property finder.

“We offer an auction service for estate agents, as well as offing any estate agent from anywhere in England the opportunity to advertise and promote through our website.

“We envisage this becoming an extremely useful tool for estate agents that will aid many stifled sales in the estate agency industry.”
For more information visit www.auctionmove.co.uk

Press Release Contact Details:

Andrew Barton Corby House, 38 Chorley New Road, Bolton BL1 4AP 01204 399440 auctionmove@inspia.co.uk www.auctionmove.co.uk

As of 11.00am on Saturday, eager buyers will have the chance to secure their very own part of this widely anticipated project. King’s Gate offers a selection of family homes in an ideal location and has proven a popular development having gained a significant amount of pre-launch interest.

Once complete, King’s Gate will comprise a variety of properties, including three-bed semi detached homes and three and four-bed detached villas with prices starting at £139,995.

Situated in a stunning coastal setting, King’s Gate provides the perfect location for family living, with excellent commuter links to both Dundee and Aberdeen and a range of local amenities, including schools, shops, pubs and restaurants.

King’s Gate will open Saturday 28 November, from 11am until 5.30pm. Thereafter, the marketing suite will be open Thursday to Monday. For further information call 01224 747 400 or visit http://www.stewartmilnehomes.com.

Press Release Contact Details:

CM Porter Novelli 45 Hanover Street Edinburgh EH2 2PJ 0131 470 3400

1808 Coalition partners are:

• Association of Mortgage Intermediaries (AMI)

• Association of Residential Lettings Agents (ARLA)

• Building Societies Association (BSA)

• Council of Mortgage Lenders (CML)

• Home Builders Federation (HBF)

• National Association of Estate Agents (NAEA)

• National Landlords Association (NLA)

Peter Bolton-King, Chief Executive of the NAEA, said: “The Coalition believes that Stamp Duty is an anachronistic tax which, in its current form, is preventing a recovery in the housing sector – it limits market flexibility, creates regional inequality and its slab structure unfairly distorts the housing market. With the Pre Budget Report due soon, now is the time for the Government to take action.”

The current Stamp Duty “holiday” for properties lower than £175.000 is due to expire at the start of 2010 but in a recent survey by the NAEA, 91 per cent of estate agents surveyed felt that it should be extended. 86 per cent of those surveyed felt that the tax is unfair.

Ian Potter, Operations Manager of ARLA said: “Not only does Stamp Duty prevent those aspiring to own a home from doing so, it also impacts the whole property chain. For ARLA members, this means having to pay Stamp Duty on the bulk price of a portfolio, when individual buy-to-let investors pay a lower rate on the single unit price.”

Robert Sinclair, Director of the AMI, said: “It is rare that the breadth of our industry comes together with such consensus on an issue. But the current Stamp Duty regime is distorting the market to such an extent that we feel compelled to speak out. The Association of Mortgage Intermediaries is fully committed to supporting this industry campaign to reform the regime. We implore the Government to not only listen but, to act in support of our request for change to this damaging tax.”

John Stewart, HBF’s Director of Economic Affairs, said: “It is imperative that the first signs of market stabilisation that have emerged in recent months, and which have allowed home builders to begin tentatively opening new sites and expanding output and employment, are nurtured. The Government’s stimulus measures for housing, including the raised stamp duty threshold, have played a significant part in this stabilisation and it is vital that they are not removed at this still fragile stage, either in total or in part.”

Adrian Coles, Director General, BSA, said: “The current Stamp Duty system in the UK is archaic and in desperate need of reform and modernisation. A fairer and transparent system is needed that doesn’t discriminate against young and first time home buyers, and promotes an effective housing market.”

Michael Coogan, Director General, CML, said: “We urge the government to announce a comprehensive and long-overdue review of Stamp Duty. Reform is needed of a tax that distorts the housing market.”

David Salusbury, Chairman, NLA, said: “Stamp Duty Land Tax is a pernicious tax which has failed to keep pace with house price appreciation. It creates an unbalanced housing market and discourages investment in housing. Reform is needed now.”

Anyone wishing to register comments on the campaign, or on Stamp Duty, should visit: http://www.nfopp.co.uk/1808

A return to the previous bands for stamp duty, when the current holiday is due to end on the 31st December 2009, could have a detrimental effect on the recovery of the housing market in regions that are already lagging behind, according to the latest research from RICS.

More surveyors in the West and East Midlands, Wales and Scotland believe that they will see a drop in activity in 2010 following the end of the stamp duty holiday for properties priced between £125k and £175k at the end of the year. Tellingly more surveyors in Wales and the East Midlands were still seeing price falls rather than rises in the last housing market survey. Meanwhile in the West Midlands, only 3 percent more surveyors saw prices rising in October.

Overall, however, the majority of Chartered Surveyors are not expecting the end of the stamp duty holiday to have a distorting effect on the housing market despite the benefit it has provided first-time buyers. Unsurprisingly it is those working in London and the South East who overwhelmingly agree that it is not forcing more houses onto the market now, and will not lead to a drop in activity once the old system is re-introduced. However, this is more a reflection on the fact that the holiday has had limited impact in these regions as the average house price is well above that of the stamp duty threshold.

Similarly in the North, where the average price is well below the threshold at £116,051, there is less concern about the impact of the end of the stamp duty holiday. However the regions that are most concerned about the impact are those whose average prices sit well within the margins that are directly affected by the holiday. These are the East Midlands (£133,973), the West Midlands (£142,969), Wales (£134,690) and Scotland (£140,175).

At the time of its introduction, we did question how great an impact this policy would have and judging by the fact that only surveyors in certain parts of the country are particularly concerned about the ending of the holiday, it could be said that some areas of the UK hardly even noticed the change.

“However the additional transaction cost is still a worry to many, particularly first-time buyers, and is a threat to the market  in the areas of the country that are still seeing a weak price environment. A return to the status quo will be of benefit to no one, and as such RICS believes that rather than simply reverting back to the old structure for Stamp Duty, the imminent change provides an opportunity for the Government to introduce a wholesale restructuring of the tax. Specifically RICS favours moving from the current slab structure to a marginal system with no homebuyer paying anything on the first £150,000 of their new home.”

Simon Rubinsohn, RICS chief economist

The additional questions asked in the RICS October Housing market Survey were:

1. Is the planned ending of the Stamp Duty holiday on properties priced between £125K and £175K contributing to the higher level of activity in the housing market?
2. Do you expect this decision to lead to a drop in activity in the early part of 2010?

Further reading:
RICS has suggested the referenced change to Stamp Duty Land Tax as part of its Pre-Budget Report submission to the Treasury. The full submission is available at http://www.rics.org/externalaffairs

The competitive house prices and rents seen over the past two years have opened up the prime property market to a wider variety of homebuyers and tenants, says email4property.co.uk, with many more now looking to make their move as the market shows signs of recovery.

While seasoned investors were quick off the mark to snap up prime property at bargain prices as the market showed the first signs of bottoming out earlier in the year, less experienced cash-rich buyers are now looking to act quickly amid signs of sustained price growth. Tenants have also benefitted from price falls in the rental market. Many are now hoping to trade up to better homes in more desirable locations and tie into a year-long contract before prices rise out of their reach.

Email4property.co.uk, the UK’s largest online network of estate agents, has seen a 20% increase in the use of its ‘Premier Property’ search option since August this year. It has some essential tips for those looking to capitalise on current market conditions and enter the prime market:

How much is a prime postcode worth to you?

Even if you can afford to buy or rent in a more upmarket location, it might not always be worth your while doing so. If you are stretching yourself financially to secure a particular street or district, you may not achieve the prestigious lifestyle you had hoped for. Consider how important the locality is to your living needs and whether you might be better off seeking more for your money elsewhere. A studio flat in Chelsea is still a studio flat, regardless of its postcode!

Premier property needs a premier agent

Different agents cover different sectors of the market. Those that focus on prime markets and list higher-end property will also be best placed to advise you. Not only will they have access to the best range of homes in your area, but they will also have the experience and expertise to be candid with you on your expectations and restrictions. Visit the ‘Premier Property’ function for your chosen location on email4property.co.uk. For example: www.email4property.co.uk/chelsea/premier-property

Make sure you are precise and accessible

Be upfront with your agent on exactly what it is you are looking for and how much you are willing to pay. Having opted to go for a prime property you may be unwilling to compromise, particularly if you are buying, but the agent will be able to advise on whether your criteria is realistic. Be as forthright as possible with them about the property you want to view, so that no time is wasted in your search. Rest assured you will not be the only person in your area on the look-out for a prime bargain, so ensure you are also readily available to receive updates from your agent.

Don’t neglect the home-searching basics

While the location and/or style of the property may be sufficient enough for you to make a decision, you should not neglect the standard home searching procedures. Judge the property on all the merits you would in normal circumstances – such as the local amenities, transport links, schools etc. Depending on how long-term the move is, consider how the home will suit your changing needs over time. And of course, do not neglect any assessment of the general state of repair! A bargain priced conversion property in a dream
location is likely to need as much work as any other – it could soon lose its bargain status if significant work needs to be done to make it liveable for the long-term.

Steven Lees, Head of Marketing for email4property.co.uk, comments:

“Those lucky enough to have had sufficient capital to secure a mortgage over the past two years have been in a strong position to capitalise on the low prices available across the market, and many have been able to secure homes that would previously been out of their reach.

“With strong signs of firming house prices and rents starting to improve across the sector, people are now realising that the prime market may not remain open to them for much longer. However, there are still options available and plenty of specialist agents across the
country who are well-equipped to advise buyers/renters on their options and help them source the best properties available.”

For a comprehensive list of estate agents in your area visit: www.email4property.co.uk

– Ends –

Investors hit by the downturn who choose not to complete property deals can still be forced to buy after court orders, lawyers have warned.

By Kevin Peachey
Personal finance reporter, BBC News

Many buyers who agreed to purchase city apartments being built in the boom now find values have plunged or have difficulty in finding a mortgage deal.

Some wrongly believe they risk only their deposit by pulling out after exchanging contracts.

But lawyers said the legal obligation to complete the transaction was clear.

Average flat prices fell by 19.5% in England and Wales from peak to trough.

The average price had risen to £175,776 by January 2008, according to the Land Registry, but then plunged by £34,211 to £141,565 by May 2009.

Quick profit

Many buy-to-let investors – including so-called amateur landlords – jumped on the property bandwagon as prices continued to rise.

If the completion dates were six months earlier…it would have been a completely different story Administrator Chris Stirland Financial shadow cast by city apartments

Some who exchanged contracts, often agreeing after seeing plans of construction work, have since been hit by the squeeze on mortgage finance, or simply realise that a fast profit is no longer available.

This, in turn, has affected developers and they have put pressure on buyers not to pull out of contracts.

A developer can apply to a court to seek an order of “specific performance” – an injunction that makes the buyer perform his or her part of the contract and complete the purchase agreement.

“Such actions were rare in the boom times when finance was readily available and the value of property was ever-increasing,” said Paul Lewis, a partner in commercial litigation at Gordons law firm in Leeds.

“But with the economic downturn, builders and developers are now seeking legal advice on ways to enforce the contract or at least seek advice on how to recover their losses.”

However, he pointed out that judges would only make such an order if an award of damages was not adequate. Generally, they would be cautious when asked to force somebody to buy. Other options for the seller included:

• Rescind the contract – this is when the seller cancels the contract, keeps the deposit and retains the property in an attempt to resell it
• Rescind the contact and sue – the seller goes to court to claim any unpaid deposit and then tries to resell
• Sue for damages – if successful, the buyer who pulls out must pay the seller the difference between the contract price and the value at the date when completion should have taken place.

Suing for damages is often the better option if the buyer does not have the funds to buy the property. City-centre apartment investors might have equity in other properties and so an award could be enforced.

However, many investors remain ignorant of the rules, lawyers warned.

“There is a worryingly widespread and entrenched belief among buy-to-let investors that if they decide to withdraw from a purchase for which they have exchanged contracts, that only their deposit is at risk,” said Jeremy Raj, of City law firm Wedlake Bell.

“The legal position is quite clear. They are legally obliged to complete on the transaction.”

Administrators are currently considering legal action after the collapse of a development company which renovated a block of 112 apartments called Thames Tower in Leicester city centre.

Brampton Asset Management (Leicester) Ltd called in the administrators after contracts were exchanged on 111 apartments, but only 14 completed.

“If the completion dates were six months earlier, all those people would have paid. Mortgage products were still in hand then. The bank and creditors would have been paid and it would have been a completely different story,” said administrator Chris Stirland, of Vantis Business Recovery Services.

Defence?

Generally, buyers have a defence against these actions by developers if the development was “not substantially completed”, if the property was not adequately described or misrepresented, or if the value of the property overtakes the contract sale price or is sold for a higher value (in which case the buyer might be able to reclaim their forfeited deposit).

When a developer becomes insolvent some buyers also find that their deposits have been swallowed up by the developer instead of kept by their solicitors in a separate account.

A reputable builder will usually offer insurance to a buyer of a newly built property to cover defects and some of these policies provide for repayment of deposits in cases such as this.

Original article link

If a new build developer or selling agent offers you a discount from so called "normal price" simply ask yourself why the skilled new build developer or agent needs to do this to sell the property.

Editor

*****************

All 49 flats in this block in Manchester are owned by amateur investors – 37 of them thanks to one property club. Now it is feared that their value has slumped by HALF – or worse – in four years.

Richard Dyson, Financial Mail -16 March 2008

Liability: Bridgewater view in Monton, Manchester

The get-rich-quick advertising of property investment club Inside Track has persuaded more than 100,000 people to attend seminars in the past few years.

But profits at the privately owned club, which are generated mainly by recommending newly built properties to fee-paying members, are sliding.

And the number of people prepared to sign up for its £2,500-a-time seminars has plunged. 

The firm, Britain’s biggest property club, last week axed 44 staff and announced it would cease offering free taster seminars held at hotels and conference centres. But it is not just Inside Track that is suffering – so are some of its clients.

Falling property values, a shortage of tenants and an oversupply of certain types of homes mean some landlords are losing money fast. Lenders are even turning away some landlords (see below), or forcing them to pay punishing rates of interest.

Inside Track boss Tony McKay admits the market is difficult. ‘There is less demand for seminars,’ he says. ‘We are focusing on existing members who are still buying properties but at a slower rate.’ There are 10,000 members, most of whom have bought membership for a fee of several thousand pounds paid on top of the £2,500 seminar bill and McKay says most are happy. Not all, however. 

Photographer Gary Hynes, 51, and dozens of others are sitting on mounting losses through investing in a block of flats called Bridgewater View in Monton, Manchester.

Before the block was built in 2004, Inside Track urged investors to buy two-bedroom flats it said were worth £140,000 and likely to attract up to £650 a month in rent. It is not known what the properties are worth today, but a two-bedroom flat in the development failed to sell at auction in December for a guide price of £70,000. The flat is now let for £425 a month.

Gary, from Oxton, The Wirral, and other Inside Track members are failing to cover their mortgages with rental income. They are having to dip into their savings to meet their mortgage bills and at least one is thought to have had his property repossessed. 

The development of 49 flats, all bought by amateur landlords, and in 37 cases on the recommendation of Inside Track, has been beset by problems. The location, build quality and security have been cited as just a few of many troubles. Inside Track denies responsibility.

Property analysis

This is Money’s expert analysis
 

On top of membership fees to join Inside Track, and the seminars they paid for, investors in this block also paid a ‘finder’s fee’ to the property club in return for the recommendation. Gary estimates he has paid Inside Track more than £9,000 in fees, including a finder’s fee of £4,540.

Big losses: Gary Hynes could be £50,000 worse off because of his property investment.

His total losses, including the estimated fall in the value of the flat, exceed £50,000, he says, and losses are mounting at £200 a month. ‘What we were offered was an armchair service where we were to trust the advice given to us by Inside Track,’ he says. 

‘It promised to do due diligence, check out these properties and recommend the best.’

More than 20 investors in the block have complained to the company. It has since paid for a security firm to make random visits to the site but denied any failure on its part.

McKay says that Inside Track relied on other experts for the recommendation and adds that just one out of ten developments meets its requirements as being suitable for investors. ‘We’re communicating with investors and we’ve helped where we can,’ he says. ‘When things go wrong, we do our utmost to put matters right.’

Inside Track will soon publish its accounts for 2007 and these are expected to show a sharp fall in profits and numbers of people at free seminars. In 2006, the number of attendees fell to 25,000 from 32,000 the year before. The number paying the £2,500 fee dropped to 3,400 from 4,400.

Squeezed lenders cut risky loans  

Inside Track’s promises are tempting: ‘How to retire completely debt-free in three to five years’ and ‘how to buy lucrative UK property with little or no deposit’. 

Whether such goals are realistic is questionable, but life has got harder for all property investors, especially those in newly built, inner-city flats. That is because of the change in mortgage lenders’ attitudes to risk.

Lee Grandin of specialist broker Landlord Mortgages says: ‘New-build is an area where experienced landlords do not invest. In a rising market, novices can make money buying anything, but that doesn’t work in a stagnant market.

‘Lenders have been stung and are taking action to protect themselves by refusing to lend or demanding bigger deposits. People who have bought in the past couple of years have been hit hard and, yes, they could struggle to remortgage.’
 

Nationwide Building Society will not lend money to landlords of new properties, while Coventry wants a 50% deposit on such properties. Other lenders to tighten terms on new flats include Kensington, GMAC, Woolwich and Abbey.

Lenders also worry about mortgage fraud. This has mostly involved newly built properties that have been overvalued.

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