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Hometrack: house prices down 1.6% in 2010

House prices in England and Wales fell by 0.4% during December, with 36% of postcodes recording declining prices, according to Hometrack.
Overall, the value of the average home ended 2010 down 1.6%, with 71% of the country seeing prices dip on an annual basis.
However, across 15% of postcodes (notably London and the South East) prices [...]

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House price slippage continues

Latest figures from the Land Registry show the average price of a home in England and Wales falling by 0.6% in November, marking the third consecutive month of decline and taking annual growth down to 2.2%.
The average house price stood at £164,773, the lowest level seen in a year.
London experienced the greatest monthly rise [...]

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Fewer long-term empty private homes

The number of long-term empty private homes in England has fallen for the first time in three years, according to the latest annual Empty Homes survey from Halifax.
As at April 2010, 295,519 homes had been vacant for more than six months, down 6% from a year earlier to the lowest level since 2007.
Empty dwellings accounted [...]

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Improved credit conditions to support 2011 house prices

Estate agent, Chesterton Humbers, has joined forces with the Centre for Economics and Business Research to forecast house price movements in England and Wales in the year ahead.
Fired by the near accuracy of its predictions for 2010, the firm dismisses suggestions that public spending cuts, weakening employment and a rise in forced sales could result [...]

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Communities Secretary Eric Pickles has lost a court battle over his decision to scrap the last government’s regional housing targets in England

Eric Pickles housing move ‘unlawful’

Communities Secretary Eric Pickles
Eric Pickles said he wanted to return power to local authorities

Communities Secretary Eric Pickles has lost a court battle over his decision to scrap the last government’s regional housing targets in England.

The move was ruled unlawful by the High Court.

Housing developers had asked the court to block it, arguing Mr Pickles had abused his powers.

Mr Pickles had said he wanted to return planning powers to local communities. An aide said that no appeal was planned.

The ruling means that controversial plans for building thousands of new homes in each English region could be back on – but a government source said the court ruling was only a “technicality” and would not change anything.

That is because legislation will be published next month that will deal with the issue, he suggested.

‘Parliamentary democracy’

Housing developer Cala Homes (South) Ltd argued that Mr Pickles was wrongly seeking to revoke regional planning strategies through discretionary powers.

Mr Justice Sales, sitting in London, ruled that the Cala Homes argument was “well founded”.

“What today’s judgement identifies is that he (Mr Pickles) wasn’t entitled to make the decision in the way that he did”  Ian Ginbey Cala Homes’ lawyer

The developer argued primary legislation should have been introduced, giving MPs the opportunity to debate an issue crucial to future planning in England.

It claimed Mr Pickles’s decision “struck at the heart of parliamentary democracy”.

The government argued that regional strategies were made by regional assemblies, an undemocratic tier of regional government, and this undermined directly elected local authorities.

Ian Ginbey from Cala Homes’ lawyers, Macfarlanes, said the legal challenge to Mr Pickles’s decision “wasn’t an attack on localism at all”.

But he said scrapping the targets without anything to replace them had “left a policy vacuum, caused confusion throughout the industry and directly resulted in proposals for tens of thousands of new homes being abandoned”.

He conceded that the High Court ruling might only succeed in delaying the scrapping of the targets until next autumn, when planned new legislation is likely to come into effect.

‘Embarrassing questions’

But he said it could mean that many housing developments rejected on appeal since the targets were scrapped in July could now be back on the cards.

“What today’s judgement identifies is that he (Mr Pickles) wasn’t entitled to make the decision in the way that he did,” Mr Ginbey told BBC News.

“We will work with local communities to build more homes”  Bob Neill, Local Government Minister

David Orr, chief executive of the National Housing Federation, which represents housing associations, said the decision to get rid of the targets was “a hasty and damaging move, which has already seen plans for over 180,000 homes scrapped”.

Shadow communities secretary Caroline Flint said the court ruling “raises embarrassing questions about the way Eric Pickles ripped up plans for desperately needed new homes”.

She added: “The coalition’s housing policies are doing little to meet the aspirations of the hundreds of thousands of families who want to live in a decent home.”

The court’s decsion was welcomed by the Home Builders’ Federation which said it would help local authorities plan new housing developments using the old targets while a new “locally-based” planning system is put in place over the next two years.

But junior communities minister Bob Neill said it “changes very little”.

“Later this month we will be introducing the Localism Bill to Parliament, which will sweep away the controversial regional strategies.

“Top-down targets don’t build homes – they’ve led to the lowest peacetime house-building rates since 1924.

“The government remains firmly resolved to scrap this layer of confusing red tape.

“Instead, we will work with local communities to build more homes. This was a commitment made in the Coalition Agreement and in the general election manifestos of both coalition parties. We intend to deliver on it.”

The court heard Mr Pickles decided in July to revoke the regional strategies, which include house-building targets, introduced under the 2009 Local Democracy, Economic Development and Construction Act.

James Eadie QC, who represented the Communities Secretary, argued in court that Mr Pickles had power to revoke the entire regional strategy tier of planning policy guidance and was entitled to do so as it was not operating in the public interest.

Mr Pickles has been at the forefront of the government’s efforts to decentralise power – and has fought a series of high-profile battles with quango and council bosses over alleged extravagance with public money.

Link to original BBC article

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Paragon returns to lending

The Paragon Group of Companies is delivering on its commitment to return to new lending and aims to re-establish its market leading position in the buy-to-let mortgage sector.

New funding

Paragon has arranged funding via a new warehouse debt facility and will resume buy-to-let lending with immediate effect. These will be the first new buy-to-let mortgages that Paragon has offered since February 2008 when it withdrew from the market due to conditions in the global financial markets.

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

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City College Brighton and Hove is urging local construction firms to take on apprentices

City College Brighton & Hove

City College Brighton and Hove is urging local construction firms to take on apprentices as there is currently a shortage of Brighton and Hove employers in this sector participating in the apprenticeship framework. Taking on an Apprentice can have a hugely positive impact on a business, and during a tough financial climate, it is a cost effective way for a business to invest in their work force. Matthew Carver, Director of local electrical contractors Lucas Electrics, is bucking this trend and encouraging others to follow suit.

Matthew says:

“I think it’s important to train kids properly in a hands-on way. Joe, the apprentice we’ve taken on, is learning really fast while he’ll also be picking up the theory side at College. In the first six months an apprentice will be shadowing you a lot but if you treat them well and train them well, at the end of the day they’ll be making money for you and it’s a good move for any business in the construction industry to take one on.”

Apprentice Joe Cole says:

“I went to a mainstream College to take A levels and it didn’t really work out for me. I just prefer doing practical stuff, its going really well and I enjoy learning, working and earning money at the same time.”

As an additional incentive, a new grant is currently available for businesses who take on an Apprentice aged 16-24 before the end of October 2010. The grant, a sum of £1,500, is in addition to City College’s customer service, including a dedicated skills advisor who guides employers and apprentice through every stage of their training.

For more information on taking on apprentices, contact City College’s Apprenticeship Co-ordinator Krystle Holford on 01273 667788 x 303 or email KHO@ccb.ac.uk

For media enquiries, please call Brian Bell, Marketing Communications Officer, on 01273 667788 Ext. 488 or email bb1@ccb.ac.uk website www.ccb.ac.uk

About City College Brighton and Hove: Situated in the heart of Brighton, City College Brighton and Hove has become an international centre of vocational excellence. Every year 2,000 full-time, 10,000 part time, over 500 Higher Education and 250 14-16 year old students as well as many international and European students choose City College as their place of further and higher education training. In addition, the College provides training to over 2,000 businesses via its ‘City Business Skills’ department which focuses on employer training needs. Offering over 700 courses from basic level right through to business and postgraduate training, City College is working with its partners to develop the workforce of the future.

Contact Name: Brian Bell
Role: Press Officer
Company: City College Brighton & Hove
Contact Email: click to reveal e-mail
Contact Phone: 01273 667788
Company Website: http://www.ccb.ac.uk
More details: http://www.ccb.ac.uk/public

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Nationwide: House Prices Now Less Than 10% Below Their 2007 Peak

  • House prices increased by 0.5% month-on-month in May
  • Annual rate of price inflation drops from 10.5% to 9.8%
  • Prices up 12.2% since February 2009 trough
Headlines April 2010 May 2010
Monthly index * Q1 ’93 = 100 334.0 336.0
Monthly change* 1.1% 0.5%
Annual change 10.5% 9.8%
Average price £167,802 £169,162

* 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

Monthly % Change Seasonally Adjusted 3 month on 3 month % change Annual % Change Average Price
May-08 -3.0 -3.3 -4.4 173,583
Jun-08 -1.1 -4.3 -6.3 172,415
Jul-08 -1.9 -5.4 -8.1 169,316
Aug-08 -2.2 -5.4 -10.5 164,654
Sep-08 -1.8 -5.6 -12.4 161,797
Oct-08 -1.4 -5.4 -14.6 158,872
Nov-08 -0.1 -4.8 -13.9 158,442
Dec-08 -2.5 -4.2 -15.9 153,048
Jan-09 -1.3 -3.7 -16.6 150,501
Feb-09 -1.5 -4.4 -17.6 147,746
Mar-09 1.2 -3.6 -15.7 150,946
Apr-09 -0.3 -2.5 -15.0 151,861
May-09 1.2 -0.1 -11.3 154,016
Jun-09 1.0 1.1 -9.3 156,442
Jul-09 1.4 2.6 -6.2 158,871
Aug-09 1.4 3.2 -2.7 160,224
Sep-09 0.9 3.8 0.0 161,816
Oct-09 0.6 3.5 2.0 162,038
Nov-09 0.6 2.9 2.7 162,764
Dec-09 0.6 2.3 5.9 162,103
Jan-10 1.3 2.1 8.6 163,481
Feb-10 -1.0 1.7 9.2 161,320
Mar-10 1.0 1.6 9.0 164,519
Apr-10 1.1 1.1 10.5 167,802
May-10 0.5 1.7 9.8 169,162


 

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Nationwide: House Price Inflation Reaches Double Digits

  • House prices increased by 1.0% month-on-month in April
  • Annual rate of price inflation moves into double digits for first time since June 2007
  • House prices are 10.0% below the October 2007 peak
Headlines March 2010 April 2010
Monthly index * Q1 ’93 = 100 330.6 334.0
Monthly change* 1.0% 1.0%
Annual change 9.0% 10.5%
Average price £164,519 £167,802

* 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).


 

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Six charged in £50 million ‘mortgage fraud’

Six individuals have been charged with offences in connection with a series of high value commercial mortgage frauds.  Following a hearing at City of London Magistrates’ Court the case has been sent to Southwark Crown Court for a preliminary hearing on 4 January 2010.

The investigation was referred to the Serious Fraud Office in March 2006 by West Midlands Police following a complaint from the Cheshire Building Society.

It is alleged that the defendants participated in a series of frauds whereby they dishonestly obtained loans from banks or building societies that were secured on six commercial investment properties. Each property was transferred between companies controlled by one of the defendants and his associates at highly inflated prices in a series of back to back transactions. On the basis of the grossly inflated prices, fraudulent valuations and forged leases, the defendants applied for and obtained mortgage advances totalling nearly £50 million.  The mortgages were quickly defaulted on and the lenders suffered significant losses.

Five individuals, Ian McGarry (d.o.b 10/05/69), Hardeep Sodhi (d.o.b 05/10/76), Fatema Patwa (d.o.b 20/02/62), Saghir Afzal (d.o.b 01/01/62) and Laurence Ferrigan (d.o.b 20/11/61) have been charged with offences of conspiracy to obtain a money transfer by deception and dishonestly obtaining a money transfer. Simon Lawrence (d.o.b 07/04/61) has been charged with conspiracy to obtain a money transfer by deception.

Notes

At the relevant time:

  • Ian McGarry was a chartered surveyor at Dunlop Haywards Lorenz;
  • Fatema Patwa was the sole principal of her own firm, Patwa Solicitors, based in Birmingham.
  • Hardeep Sodhi was a solicitor employed at Patwa Solicitors in Birmingham.
  • Laurence Ferrigan was a partner at The CFB Partnership, Wanstead, East London.
  • Saghir Afzal was a company director and property owner.
  • Simon Lawrence was a partner of Darlingtons Solicitors in, Edgware

Serious Fraud Office, Elm House, 10-16 Elm Street, London, WC1X 0BJ

Press Office tel: 020 7239 7001/7004 or mobile: 0781 807 6688

Main switchboard tel: 020 7239 7272

press.office@sfo.gsi.gov.uk – or via – www.sfo.gov.uk

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Help is still at hand for Stamford Homes first time buyers

ALTHOUGH the past few months have seen a return to the UK housing market by first time buyers, research still suggests that more than a quarter believe it will take them five years to raise a deposit.

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

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Don’t let the cost of Christmas put you off buying a new home

IT’S not only the tingling of jingle bells many of us hear over the festive season – but the ringing of the tills as we spend our way through the festive season and well into the January sales!

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

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Stamford Homes – the benefits of buying new when home-hunting in Lincolnshire

When it comes to moving or buying a first home, many people are faced with the dilemma of old versus new.

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

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Lambert Smith Hampton say flexibility the future for commercial property

Lambert Smith Hampton say flexibility the future for commercial property

Andrew Gordon, Director of Lambert Smith Hampton’s (LSH’s) Cambridge Office, believes it’s not just the biotech companies that need flexibility when it comes to office accommodation.

CAMBRIDGE, ENGLAND, November,  2009 

Andrew thinks more business incubators are needed for start-up and fledgling companies rather than traditional office space. He warns that Cambridge will have to diversify in the future, and reduce its reliance on the R&D and professional services sectors.

Andrew said that the digital and media sectors are far more relevant, and they are going to require a different focus in terms of property. He feels that the market needs to develop its technology centres so that business can function successfully in the 21st Century.

Difficulties arise when smaller traditional office units are occupied by companies that experience rapid growth. It is these fast-growing companies that need flexibility rather than to be restricted by traditional lease structures. A solution needs to be found to enable such businesses to develop and change quickly.

Andrew said:
“Old fashioned lease structures, where tenants take on a lease for a lengthy period of time, have disappeared for good. It is now important to look at new flexible lease structures. However, this will present difficulties for developers and investors resulting from a lack of certainty of income.

“From my experience, most occupiers will pay more for flexibility and operational efficiency which will result in higher rents per square foot. It is a question of changing the mindset of landlords.”

Andrew sees diversity as the key to future economic growth, and believes there is now a pressing need for a new type of building to meet demand.

The next stage is to consider how to invest in property offering flexible terms, as many companies don’t wish to occupy traditional buildings. Fast growing companies need buildings that will evolve with product development, and following ongoing investment present a better whole life cost.

Andrew goes on to say:
“Developers have provided bespoke buildings in the past, but in these turbulent times investment and funding markets are going to have to get their heads around the implications before they appreciate the opportunities. That said, I don’t believe speculative building will return for at least 12 months. We will need to demonstrate that occupier demand has returned before that happens!

“The banks haven’t been doing any major lending in the commercial property sector recently, and, going forward, they will be looking for developers to take more risk and put more money into projects. A traditional approach, but one that is unlikely to facilitate the changing face of commercial property.”

Andrew Gordon
Director
Lambert Smith Hampton
Cambridge Office
Tel: 01223 276336
Email: agordon@lsh.co.uk

Lambert Smith Hampton (LSH)

LSH is a leading commercial property consultancy with an unrivalled national network focused on the UK and Ireland property markets. Its expert teams deliver a full spectrum of transactional and consultancy services and business-driven solutions for clients. LSH is the ‘UK’s most active national agent’ and ‘Top National Office and Industrial Agent’ (Estates Gazette’s ‘EGi Deals Competition’).

Lambert Smith Hampton’s (LSH) Cambridge office is a commercial property consultancy providing property services and advice in Cambridge, the surrounding area and nationally. With LSH clients have the added advantage of each office being backed by the strength of a national office network. For clients, this means 10 key divisions and over 850 professional staff working together to address the commercial property difficulties you may face, anywhere in the UK.

Lambert Smith Hampton is a founder member of the Elite Cambridge Business Circle.

6 Wellbrook Court
Girton Road
Cambridge
CB3 0NA
UK

Tel: + 44 (0) 122 327 6336
Fax: + 44 (0) 122 327 6226

http://www.lsh.co.uk

For more information contact:
Andrew McGahey
Director, Head of Cambridge Office
Lambert Smith Hampton

Tel: 01223 276336
Email: amcgahey@lsh.co.uk

Issued by:

Murdoch MacDonald
Fame Publicity Services
E-mail FamePublicity@gmail.com
Web: http://www.famepublicity.co.uk

http://www.CambridgeshireBusinessNews.com

Telephone: 01292 281498
Mobile: 07833 667322

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Beemoved Announces Special Prices For Clients Committing Storage For More Than 6 Months

Brighton, UK   November 2009 –
Beemovedremovals are not strange to the relocation service world. They are pioneers in offering both home and business relocation services.

“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

###

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Five free tree seedlings worth £10.00 with every order over £40.00 – GardenSupplies.co.uk offer

Part of commitment to the environment & carbon neutrality

final-logo-small.jpg (52 KB)

As part of a commitment to the environment and the reduction of their carbon footprint, GardenSupplies.co.uk are offering customers the opportunity to claim five free tree seedlings worth £10.00 with every order placed over £40.00.

Running from 16th November 2009 to 31st March 2010, qualifying customers will have the option of selecting from 11 different species; including English Oak, Ash, Green Beech, Silver Birch, Field Maple and Norway Maple, with the trees supplied as bare-rooted seedlings, 2-3ft in height.

Andrew Henderson, Managing Director, keenly explains the reasoning behind the scheme:
“Since the launch of our business, we have always been acutely aware of our carbon footprint, and have worked hard to minimise such where possible. The free trees promotion is an extension to that commitment, and presents a tangible benefit to our customers.”
“The planting of trees not only takes in carbon dioxide, but creates oxygen – which is why trees are widely regarded as the lungs of the earth. Not only that, but trees can make a marked improvement to the look and feel of a garden, and our primary aim is to ensure that customers get the very best from their garden. The trees would also make a very thoughtful gift for the gardener who has everything,” he added.

Further information on the promotion can be found at the following address: http://www.gardensupplies.co.uk/content/free-trees.aspx

About GardenSupplies.co.uk:
Launched by husband and wife team Andrew and Zoe Henderson, GardenSupplies.co.uk has been developed to provide an extensive range of quality garden supplies for every gardener.
With the provision of first-rate customer service at the core of the e-commerce operation, GardenSupplies.co.uk dedicates itself to complete customer satisfaction.

The inclusion of a no quibble, free of charge return policy allows customers to purchase with abundant confidence, whilst the implementation of carefully selected secure technologies safeguard every transaction.

With an extensive and exciting range of over 900 products that cover all aspects of gardening – from Grow Your Own products from the likes of Burgon & Ball, Haxnicks, Garland and Stewart Garden Style, to organic compost from Vital Earth, and ranges of garden footwear and gloves from Town & Country and Laura Ashley – GardenSupplies.co.uk offers products that will allow customers to grow, decorate and maintain their outdoor space, but, above all, allow them to get the very best from their garden and contribute to the enjoyment of spending time within it.

With three fully functional warehouses and efficient order processing and stock management systems, all orders are picked, packed and dispatched without unnecessary delay.

Press Release Contact Details:

Garden Supplies Ltd.,
Norton Road, Snitterby, Gainsborough, Lincolnshire, DN21 4TZ
Telephone: 01673 818046
Fax: 01673 818444
E-mail: enquiries@gardensupplies.co.uk
Web: www.gardensupplies.co.uk

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Land Registry – October house prices up 0.6 per cent since September: average house price in England and Wales now £159,546

The October data from Land Registry’s flagship House Price Index shows a positive monthly house price change of 0.6 per cent, which is the fifth month in a row in which the movement has been above nought per cent.

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/

Region Monthly change Annual change Average price
North West

1.9%

-5.3%

£119,463

South West

1.5%

-1.0%

£171,804

North East

1.5%

-5.5%

£110,596

London

1.4%

-0.2%

£317,601

South East

1.3%

-1.5%

£201,245

East Midlands

0.9%

-3.8%

£125,348

England and Wales

0.6%

-3.4%

£159,546

East

0.2%

-3.1%

£167,318

Yorkshire & The Humber

0.2%

-5.6%

£124,517

West Midlands

-0.6%

-6.3%

£131,893

Wales

-2.3%

-6.0%

£118,950

Average prices by property type (England and Wales) October 2009 October 2008 Difference
Detached

£246,860

£253,438

-2.6%

Semi-detached

£150,173

£155,076

-3.2%

Terraced

£123,056

£129,212

-4.8%

Flat/maisonette

£149,256

£153,507

-2.8%

All

£159,546

£165,185

-3. 4%

Month Sales 2008 (England and Wales) Sales 2007 (England and Wales) Difference
January

57,858

87,686

-34%

February

61,622

86,788

-29%

March

57,955

106,151

-45%

April

62,405

95,272

-34%

May

65,037

108,042

-40%

June

58,652

123,385

-52%

July

52,631

116,817

-55%

August

48,109

124,567

-61%

September

41,297

98,087

-58%

October

44,560

102,597

-57%

November

36,085

100,731

-64%

December

39,304

81,299

-52%

Month Sales 2009 (England and Wales) Sales 2008 (England and Wales) Difference
January

26,743

57,858

-54%

February

27,801

61,622

-55%

March

36,507

57,955

-37%

April

39,203

62,405

-37%

May

45,547

65,037

-30%

June

51,956

58,652

-11%

July

59,691

52,631

13%

August

53,236

48,109

11%

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

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Recycled building modules used by Foremans for First theatre training centre in the north of England

First theatre training centre in the north of England is completed – and using recycled building modules

Foremans Relocatable Building Systems, the UK’s largest supplier of refurbished and recycled modular buildings, has completed a new theatre training centre at Freeman Hospital in Newcastle-upon-Tyne – the first clinical training facility of its kind in the North of England.

Newcastle-upon-Tyne Hospitals NHS Foundation Trust appointed Foremans to provide the new single-storey building to enable staff from across the North to participate in the latest interactive simulated training in clinical procedures.

The scheme comprises 10 pre-owned steel-framed modules which were recycled and refurbished for this project, enabling it to be delivered in just 11 weeks from receipt of order to handover.  This short programme allowed the Trust to bring the facility into use as fast as possible to meet demand, and facilitated access to national funding.  The centre is now running at full capacity.

The building features clinical education rooms with a control room for each, seminar rooms, offices, toilets, storage facility and a category 6 containment laboratory.

Foremans also supplied an audio door control system, security alarms and fire detection system, and implemented a traffic management plan to minimise disruption during the building delivery and installation phase.

Commenting on the three recycled modular buildings that Foremans has now supplied at Freeman Hospital, Steven Bannister, the Trust’s Director of Estates and Facilities, said, “Foremans has been able to provide exactly what we needed for each project, and to challenging deadlines.  Timing is critical to the Trust, in order to bring the buildings into use in the shortest possible time, and new manufacture or site-based construction would have taken much longer.”

“The environmental performance of our buildings is also very important to the Trust.  The pre-owned modular approach enabled us to offer a higher degree of sustainability with the use of recycled modules.  We are very pleased with Foremans’ performance on these three schemes and would have no hesitation in recommending their approach or in using it again.”

Foremans has also constructed a new medical electronics building at Freeman Hospital, which enabled the department to be relocated for the consolidation of clinical services on this constrained hospital site.  The new building, which comprises 14 recycled modules, provides more storage space and a more appropriate working environment for the medical electronics team.  It was delivered in a challenging timescale of just 10 weeks from receipt of order, to fit in with the Trust’s wider development programme.

When the Trust needed to relocate the estates and stores building to accommodate a new data centre, Foremans supplied a purpose-designed two-storey stores facility using pre-owned building modules.  This solution ensured continuity of service and the centralisation and more efficient management of the hospital’s stores.

Foremans specialises in the supply of quality refurbished and recycled modular buildings, designed to individual project requirements.  In addition to its sustainability benefits, the approach offers a range of other advantages:

  • A cost-effective alternative to new build
  • Programme times for high quality temporary or permanent accommodation are reduced by up to 70 per cent
  • Off-site working is maximised for safer, quieter and cleaner sites and reduced disruption
  • The buildings can be easily expanded, reconfigured or removed if space requirements change
  • High quality steel-framed modular buildings are built to last and require fewer groundworks than traditional site-based construction – further reducing cost, disruption and programme times.

For more details on this project and to learn more about the advantages of choosing a second hand modular building, please visit http://www.foremansbuildings.co.uk/

-ENDS-

Editor’s Notes

  1. The use of recycled modular buildings is one of the most environmentally sound methods of construction:
    • It generates less than 10 per cent of the carbon emissions and uses less than 3 per cent of the energy during construction, compared to a newly manufactured building of equivalent size (source: MPBA/Arup).
    • It is highly thermally efficient.  In England, tests for air permeability on pre-owned modular buildings are not compulsory.  However, in independent tests, Foremans recycled modular buildings have performed up to 80 per cent better than Building Regulations requirements.  This means reduced energy consumption, and lower running costs and carbon emissions.
  1. Foremans offers the UK’s largest selection of refurbished Portakabin buildings available from stock.  It provides a nationwide service from its 30,000 sqm production centre in East Yorkshire, and its southern regional office in Dunstable.

The company offers a full range of construction services, including planning, finance, design, space planning, project management, groundworks, fitting out, delivery, site installation, testing and commissioning.

Tel: 01964 544344.  info@foremansbuildings.co.uk

Postal address
Catfoss Lane, Brandesburton, East Yorkshire YO25 8EJ

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Legal risk to property investors

Off-plan buyer Euan Robertson: “The time the final brick was laid we were living in a very different world”

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.

Thames Tower sign
If the completion dates were six months earlier…it would have been a completely different story
Administrator Chris Stirland

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

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Buy-to-let fraud hits thousands

Detectives are investigating one of Britain’s biggest buy-to-let schemes in which large numbers of investors have seen their savings wiped out.

They fear thousands of people who sought to cash in on the buy-to-let dream during the boom years of 2004 to 2007 may turn out to have been victims of organised fraud.

The Sunday Times – David Leppard

The Serious Fraud Office (SFO) is investigating alleged scams that have cost government-owned banks such as Northern Rock, Royal Bank of Scotland and Bradford & Bingley millions of pounds on loans that should never have been made.

Senior police officers said the full scale of the buy-to-let scandal was only beginning to emerge in the wake of the credit crunch and the collapse of house prices.

One chief constable said: “We can expect to see one or two of the same type of [scheme] emerging in every major city.”

The SFO said last week it was investigating two alleged buy-to-let frauds, involving properties in Leeds, Cardiff, Nottingham, Derby, Liverpool, Hull, Newcastle upon Tyne, Glasgow and London. Police in Greater Manchester, the West Midlands, and West Yorkshire are also involved in the inquiries.

At the centre of one of the biggest police investigations is Morris Properties, which specialised in student new-build flats and refurbished homes in Leeds and the northeast. It sold 1,000 properties before going bust last summer.

The firm was established by Simon Morris, a local developer who built up a £69m fortune by selling buy-to-let properties.

Morris’s firm lured investors with promises of substantial “discounts” on flats that were allegedly overpriced, and guaranteed rental income, which in many cases failed to materialise. Investors, drawn in by the mirage of ever-increasing house prices, were easy prey.

With property prices now falling in some areas by as much as 50%, many of those investors are facing ruin. The victims include doctors, nurses, teachers and builders who have seen portfolios worth hundreds of thousands of pounds vanish. Many have had their properties repossessed or been forced to sell at knockdown prices.

A whistleblower who once worked for Morris and fell into debts of £500,000 after making buy-to-let investments with the firm said he had received threats after helping the police. Morris denies any wrongdoing.

Last week Morris was accused by lawyers representing 133 of his former clients of overseeing a scheme in which flats were sold to innocent investors for as much as 100% above their real value.

Hammad Ahmad, a solicitor with Max Gold Partnership, said his clients would launch a group legal action in the new year against the Morris companies and several conveyancing solicitors and valuers involved in the sales.

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Thousands of Home Owners and Utilities at Risk from further flooding

Home owners devastated by the floods of 2007 and previous years still at risk and growing concerns surface for public utilities including electricity, water and sewage service supply.

Another year gone by and little or nothing has been done by government to address the flooding problems

The following two BBC articles illustrate the extent of the problem:

Environment Secretary Hilary Benn has rejected claims by a committee of MPs that Britain’s flood preparations are in a “chaotic state”.

The Environment, Food and Rural Affairs committee said the UK is still not prepared for the sort of flooding which hit much of the country last summer.

And it warned an extra £800m pledged to improve readiness was not enough.

Mr Benn said the government was already taking action in many of the areas identified in the report.

More than 55,000 homes and businesses across central, northern and South West England were devastated by last year’s floods, which killed nine people and left an insurance bill of about £3bn.

‘Confused and chaotic’

In its report, the select committee said there had been a “total lack of awareness” about how vulnerable many parts of the country were to flooding before the downpours.

“The public will not forgive the government if it is not seen to be responding to the lessons learnt from the floods of last summer,” said Michael Jack, the committee’s chairman.

“Our report has shown how confused and chaotic was the infrastructure when it came to preventing and dealing with surface water flooding.”

The report said flood defence measures have been focused almost solely on river and coastal defences, with plans to cope with heavy rainfall in an “unclear and chaotic state”.

No organisation had responsibility for dealing with surface water at a local or national level, and when drains began to overflow it was hard to see who was responsible for the drainage system, the committee said.

Planning changes

Ministers had repeatedly suggested the £800m a year for flood management by 2010/2011 would allow the government to deal effectively with future crises, the committee said.

But the settlement for flood defences made under the Comprehensive Spending Review was “far less impressive under close analysis”, it added.

Mr Benn said he “welcomed” the committee’s report but said action was already being taken to improve readiness for another major incident.

Changes to the planning laws would make it more difficult for homeowners to “concrete over” their front gardens – which he said was one of the causes of surface water flooding.

“The truth is that if we concrete over, pave over, tarmac over ground in our towns and cities and it rains like that then the drains get overwhelmed and the select committee recognises that,” he told BBC Radio 4′s Today programme.

“And what we need to sort out – what we had already recognised – is clarity of responsibility for making sure that the bits of the surface water drainage system fit together.”

Spending ‘doubled’

The right of new developments to automatically connect to the public sewerage system was also being reviewed, he added.

And the environment agency had been given “overall responsibility” for dealing with flooding and there was now a “single chain of command”.

Walham electricity switching station had a close escape after last summer’s floods

He denied there was a shortage of funds for flood defences.

“We’ve doubled the spending on flood defence in the last ten years.

“We’re increasing it by about another two hundred million pounds a year by 2010-11.

“Last summer, the Association of British Insurers said we should be spending about £750m a year by 2010-11 – actually we’re going to be spending £800m – and that’s going to mean the environment agency has more money to spend on more flood defence schemes to protect more peoples’ homes.”

Meanwhile, a confidential government study seen by the BBC suggests hundreds of UK power substations and water treatment plants are potentially at risk from flooding.

The report warns that “there are likely to be hundreds of sites at the highest levels of criticality” and says that “the risks posed by natural hazards are already rising and are predicted to rise further”.

It concludes that it would “be imprudent to rest on the basis that events on the lines of those which happened last summer were so infrequent as to reply on a reactive response alone”.

Link to original article

Most homeowners hit by last summer’s floods remain unprepared for a repeat, an insurance company survey suggests.

Some 83% of residents of Gloucester, Tewkesbury, Hull, Sheffield and Rotherham believe there is nothing they can do to protect their homes.

Of 1,500 people surveyed for Norwich Union, 95% had not secured their properties ahead of the threat of further flooding this summer.

A total of 29% also were unaware that their homes were at risk again.

Yorkshire, Gloucestershire and Worcestershire were worst hit by last year’s floods, which the Association of British Insurers says led to 180,000 claims totalling about £3bn.

Mary Dhonau, chief executive of the National Flood Forum, said: “Having been flooded myself, I know what an awful experience it can be.

“The findings of this report have shocked me because there is so much more people can do than using the humble, not to mention ineffective, sandbag.

“As someone who has witnessed the huge benefits of flood-resilient repairs, I’m a huge advocate of taking measures to protect your home.

“Adapting or altering your home can significantly lessen both the practical and emotional impact of flood.

“Not only can damage to your personal possessions and furnishings be reduced, you could be back in your home quicker after a flood if you have to move out at all.”

Flood defences

Simon Black, head of flood mapping at Norwich Union who produced the survey, said: “We believe that everyone has a responsibility to help reduce the risk of flood damage.

“That includes the government, with continued investment in flood defences, and the homeowner.

“While home insurance will protect people from the majority of costs caused by flooding, no insurance policy can replace those significant personal belongings with sentimental value.

“Similarly, no policy will be able to spare families the inconvenience and stress of being forced from their homes while it is being dried out and repaired.”

Flood protection for houses includes flood boards for door frames in case of flash floods, one-way valves on water outlet pipes and water-resistant sealants around doors, window frames and on bricks and mortar.

Link to original article

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Inside Track – The Story

Congratulations go to Guardian reporter Tony Levene for investigating the background to Inside Track.

Experienced property investors had been waiting for some time for the wheels to come off this organisation.

Champion of buy-to-let boom succumbs to credit crunch

· School for ‘property millionaires’ collapses
· Mortgage famine hits sales in UK, US and Spain

This article appeared in the Guardian on Tuesday April 29 2008 on p23 of the Financial section. It was last updated at 12:57 on April 29 2008.

The following correction was made on Tuesday April 29 2008

In the article below we referred to membership of a “property club”, run by Instant Access Properties, which came “for further payments of up to £110,000″. This should actually have read “up to £10,000″. This has been corrected.


Inside Track, the company that spearheaded the buy-to-let investment boom, is to go into administration early this morning. The demise of the firm, which once promised to show customers “how you could give up work and be a property millionaire instead”, comes as buy-to-let mortgages dry up amid tumbling values for British new-build flats, Spanish apartments and Florida homes.

Inside Track blames the credit crunch for its collapse as banks tighten up on buy-to-let lending, effectively ending 100% loans. Profits for the group three years ago were as high as £12m, but internal management accounts for the nine months to January 31 this year show income of just £239,000, with a £97,000 loss in January alone.

Its attractions had started to wane before mortgage rationing, as critical attention in the media – including the Guardian – focused on “minus millionaires”, customers owing banks more than they could afford as promised rental yields failed to materialise and property values started to tumble.

Inside Track Seminars, which labelled itself “Britain’s biggest property investment company”, was set up in 2002. It specialised in holding “free workshops” at hotels across the country. Lasting about two hours, these painted a world where anyone could become a “property millionaire”. But it was a model that depended on a rising housing market.

Founder Jim Moore, who spoke at the early seminars before moving to Spain, told prospective investors they could “start from scratch, live on easy street instead of struggling for a living”. As house prices soared, it was a message that attracted an increasing number of wannabe property millionaires. Although the workshop was free, it was a taster for a weekend seminar of “property investment education”. This could cost £2,495. Those attending were then offered – for further payments of up to £10,000 – membership of “a property club” run by an associated firm, Instant Access Properties.

The main Inside Track thrust was buying “off plan” – purchasing properties for a small down-payment, often years before completion. Investors were then told to sell before the property was finished, taking advantage of an expected rise in prices. This was known as “flipping” and landlords were encouraged to re-invest the profits into more off-plan purchases.

Prospective landlords were promised expertise and due diligence. But in March 2006 a London court was told that Lorraine Captan, Moore’s then sister-in-law, who was “taken on to source properties had no contract and no experience. She was not a professional valuer but a newcomer to the property process.”

By 2005, amid talk of a stockmarket flotation, Inside Track’s overall pre-tax profits hit £12.1m. It is difficult to calculate how much of that came from the company itself due to intra-group transfers. In 2006, group profits fell to £10.8m, then there was a steep slide in 2007 to £6.9m.

In documents filed at Companies House, the directors state: “We are aware that the risks to the company’s ability to trade are impacted by the general economic environment, the current housing market sentiment, and the lack of liquidity in the financial markets.”

In early March, Inside Track announced it was ending its workshops as interest in buy-to-let diminished. The last seminar, at Warrington this month, attracted fewer than a dozen people. Attendance at workshops had fallen from 31,722 in the year to March 31 2006 to 25,265 in the following 12 months. More crucially, those who converted to paying seminar customers slumped by a third from 5,917 to 3,834.

The shares of both Inside Track and Instant Access are held by majority shareholder Pearson Foundation, based in Panama, and three Isle of Man trusts including one designated for Jim Moore and his former wife Kim.

Instant Access is, for accounting purposes, the company into which trading figures for Inside Track Seminars are consolidated. Instant Access is not subject to any administration order and will continue trading as normal for its members, as will the group’s in-house mortgage broker, Fuel.

Descent and rise

Jim Moore, Inside Track’s founder and substantial shareholder, first came to prominence in the late 1980s for his role in L’Arome, a pyramid-selling perfume company. After a lawsuit brought by Chanel, L’Arome went bust, owing £6.5m and leaving 180,000 distributors with unsellable scent. He was, he said, “broke, massively in debt”. A decade later, he rediscovered his ability to galvanise with promises of quick riches through Inside Track. Moore earned millions from selling the buy-to-let millionaire dream.

In 2004, his marriage to Kim broke up. The couple have since been arguing over a settlement. Today, a court will announce that the former Mrs Moore has been awarded £15m.

Link to original Guardian article

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Inside Track Reported to be in Administration

Administration for Inside Track say Mortgage Solutions

Inside Track, a firm specialising in property seminars, has gone into administration.

Link to original article

However, its sister company, buy-to-let broker Fuel Investments, is said to be unaffected by the development.

A taped message on the Inside Track’s phoneline states that the move has been forced by the continued sustained difficulties of the credit crunch.

Jeremy French and Glyn Mummery of Vantis plc have been appointed joint administrators.

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