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Estate agents innovative new service – auctionmove.co.uk

New online property auction website, auctionmove.co.uk, is offering estate agents the chance to promote their properties, including difficult to sell locations to a new audience, free of charge.

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

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Stewart Milne – King’s Gate, Arbroath Launches Next Weekend

Stewart Milne Homes’ latest development in Tayside will launch next weekend (28 & 29 November) with the first release of properties at King’s Gate in Arbroath.

stewart-milne

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

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Stamp Duty Reduction on Cayman Islands Property

Stamp Duty Reduction on Cayman Islands Property

STAMP DUTY REDUCED BY A THIRD FOR FOREIGN INVESTORS BUYING IN THE SEVEN MILE BEACH AND GEORGE TOWN AREAS The Financial Secretary of the Cayman Islands has announced that there will be a temporary stamp duty reduction as part of an incentive package to investors to encourage activity within the cayman islands property market and maintain Cayman’s position as one of the world’s most desirable off shore property investment locations. Buyers will save substantial amounts on property purchases from April 1st 2009, when stamp duty will be reduced to 5% for a period of six months. The represents a significant 2.5% reduction from the usual 7.5% payable on purchases in the popular Seven Mile Beach and George Town areas.

There are no income taxes, annual property taxes, and inheritance or capital gains taxes in the Cayman Islands so unfortunately these cannot be reduced any further. However the Financial Secretary has simultaneously announced reductions in the import duty rates for building materials to help stimulate the local cayman property industry. The Cayman Islands have positioned themselves as the ultimate Caribbean island offering residents and visitors fabulous beaches, a safe and relaxed atmosphere with world class infrastructure and the highest standard of living in the region. Their economical and social stability have buffered the islands from any cayman property price fluctuations over the years and instead have shown gradual and steady appreciation in value, unlike the major markets in the world.
for more details: www.irg.ky

caymanislandsproperty.jpeg (3 KB)

Press Release Contact Details:

P.O. Box 2390GT, Grand Cayman, KY1-1105 Cayman Islands Phone: 345-623-1111

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Epoch Homes Gains National Green Prefab Design Award

National Green Prefab Design Award Goes to Epoch Homes

PEMBROKE, NH.  2009 – Epoch Homes, a leading manufacturer of fully custom designed modular homes took first place for Green Building at the annual BSC Excellence in Marketing and Home Design awards program. The Building Systems Councils (BSC) of the National Association of Home Builders presented the award for the best green prefab home at their annual Showcase event in Marco Island, Florida. Epoch also won first place for Excellence in Design- Modular Homes over 4,001 sq. ft in this years awards.

The award winning home was certified under both the LEED and NAHB green Building Guidelines. The home was Platinum LEED certified and was the first to achieve Gold under the Build Green NH Guidelines. Epoch Homes has been involved in Green Building since the late 1990’s when they partnered with the Department of Energy on the Cambridge Co-Housing project. Their first LEED Platinum project was a duplex, certified in 2007. This home was built for ABODE Builders of New England.

John Ela, Epoch CEO and owner stated, “Epoch continues to explore new technologies to make green building affordable and to simplify the process, encouraging our Builder Network to try new approaches. While building in a controlled factory environment is inherently greener than traditional site building, we try to go beyond that by offering new materials, insulation and wall systems.” He added that “Green Building and Custom Building are two approaches that go hand in hand to meet the needs of today’s discerning home buyer. Our willingness to listen to the customer has allowed us to build some of the greenest homes in the country. It is an honor to be recognized by our peers for our leadership in building beautiful green homes.”

These, along with other award winning homes can be seen at www.epochhomes.com. The award winning projects will also be on display at the 2010 International Builders’ Show in Las Vegas.

About Epoch Homes:

Epoch Homes, of Pembroke, NH, is the leading manufacturer of fully custom designed modular homes, cottages, and mansions. For 26 years, Epoch Homes has sold to a growing network of quality builders serving New England, NY and NJ, and has built some of the Greenest homes in the country. The Green Approved factory supports LEED, The National Green Building Standard ICC-700 and Energy Star certification programs.

4110 Abode 375x.jpg (102 KB)

Press Release Contact Details:

John D. Ela President & CEO Epoch Corporation Route 106 P. O. Box 235 Pembroke, NH 03275 JohnEla@EpochHomes.com www.epochhomes.com

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LENNAR’S Florida Cyber Monday Extravaganza

LENNAR’S CYBER MONDAY EXTRAVAGANZA

MIAMI, Fla. (November 23, 2009) – On Cyber Monday, November 30, Lennar, one of the nation’s leading homebuilders, is pulling out all the stops! On this one day and one day only, visit http://www.lennar.com/cybermondayhomesale/ and download valuable home buying coupons that provide exceptional savings deals on brand new Lennar homes in more than 50 communities throughout Florida.

It’s simple, with just the click of the mouse, prospective homebuyers can download coupons offering deals such as $5,000 off the base price of a new home, $5,000 off closing costs or Lennar will match the $6,500++ new and expanded homebuyers tax credit offer up to $13,000.

Cyber Monday is the only day to download these amazing offers that will not be seen again. Prospective buyers then have the next seven days to purchase a Lennar home and redeem the coupon savings.

There are more than 50 participating Lennar communities in Florida to chose from ranging from single-family homes, townhomes, condominiums, lifestyle, golf course and even active adult communities starting from the $90s in these select areas:

• Naples/Fort Myers
• Sarasota/Manatee
• Tampa/Orlando/Lakeland
• Space Coast
• Miami/Dade
• Broward
• Palm Beach/Treasure Coast

There is no better way to start the holiday season and end the year than in a brand new Lennar home.

Visit http://www.lennar.com/cybermondayhomesale/ on Cyber Monday and get a real deal on a Lennar Home.

Lennar is one of the nation’s premier builders of new homes for all generations. Currently, celebrating its 55-year anniversary, the homebuilder understands the quality, customer service and lifestyle needs of today’s new homebuyers.

For more information on Lennar’s “Cyber Monday” call 888.212.0981 in Southwest Florida, 877.204.0571 in Tampa/Orlando or 866.784.7243 in Southeast Florida.

###
Disclaimers If Needed By Publication:
Prices subject to change without notice. See a Lennar New Home Consultant for further information. +To be eligible to claim the $6,500 tax credit, buyers must have owned and resided in a home for any 5-consecutive year period
during the last 8 years, and must close after the date of enactment (11/6/09) and prior to 7/1/10. Tax Credit is subject to eligibility requirements. Lennar cannot provide guarantees of actual savings and does not guarantee the homebuyers’ qualification for the
federal tax credit. Not tax advice, homebuyers should consult with their tax advisor. Tax laws are subject to change. ++Lennar tax credit match offer valid on select homes as determined by Lennar that are purchased by 12/31/09. All offers, incentives and
discounts must be specified in the purchase agreement to be valid, and are subject to certain terms, conditions and restrictions. Offer available only to qualified buyers financing through Universal American Mortgage Company and closing at designated closing agent. Mortgage Lender License #ML 0700915. fCopyright © 2009 Lennar Corporation. Lennar and the Lennar logo are registered service marks of Lennar Corporation and/or its subsidiaries. 11/09

CyberMondayCouponImage.png (331 KB)

Press Release Contact Details:

Brandi McDonald Lennar Public Relations Manager brandimcdonald@zadv.com 321.446.8967

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CBI/GVA GRIMLEY SURVEY – FIRMS CONTINUE TO REDUCE PROPERTY HOLDINGS DURING THE RECESSION

Firms have continued to cut their property holdings in the past six months, the latest CBI/GVA Grimley Corporate Real Estate survey reveals.
This follows widespread space reductions since the turn of the year, and further shrinkage over the next six months is expected.

The twice-yearly survey, conducted between 26 August and 16 September 2009, shows that while 12% of firms increased their occupied space in the last six months, 25% reduced it, giving a balance of -13%. This was slightly less negative than the expected balance of -25%.

The survey also reveals, however, that a similar fall is expected in the coming half-year period (a balance of -15%).

Financial services firms recorded the sharpest property contraction over the past six months, with the engineering sector and transport, warehousing and distribution companies seeing the next steepest falls. The sharpest decline in the next six months is expected to be in the financial services sector again.

Three sectors – leisure (including hotels, bars & restaurants), retail and construction – reported an increase in property holdings over the past six months and the same sectors anticipate a rise in the next six.

During the recession, cost reduction and cash flow remain the most important issues affecting companies’ property decisions.

Firms were again asked about the impact of the credit squeeze and the slowing economy on their business. Access to credit was having at least a noticeable effect on 68% of firms and the economy on 85%. These were up from 62% and 81% respectively last time.

Howard Cooke, Director at leading property consultant GVA Grimley, said:

“With little let-up in the impact of the recession, firms have continued to reduce property holdings in the past six months. Unfortunately, these cuts will continue as long as the poor economic climate persists.

“Yet again, most firms feel some impact from the recession, with slightly more blaming tighter credit conditions than six months ago.”

The survey shows an increase in the number of companies that would consider moving at least part of their business abroad. Almost a third (32%) said there were issues that would make them relocate away from the UK, a significant rise on 15% a year ago.

This time the two most important reasons given by firms for considering relocating are the tax system and the economic environment, with larger firms more likely to consider a move than smaller ones. Among the different sectors, financial services firms are the most likely to say there are issues that would make them relocate (73%), followed by engineering (68%) and manufacturing (42%).

The number of firms considering exercising a break clause in their lease, which gives one or both parties the right to terminate a lease before it has ended, has increased. In this survey, over a half (51%) of firms with leasehold property are considering exercising a break clause over the next two years, up from a third (35%) in the spring. Among companies with more than 5,000 staff, 90% are considering using breaks as a method of reducing property holdings.

Since empty property rate relief was reduced a year and a half ago, occupiers must pay full business rates on empty property after a very short period, and the CBI has lobbied for the relief to be re-instated.

Matthew Farrow, CBI Head of Infrastructure and Planning policy, said:

“In the recession, firms are looking to cut their property costs wherever possible, but the Government’s failure to restrict next year’s rate rises to 7.5%, as we had proposed, together with the ongoing loss of empty property rate relief risk is making a difficult situation even worse.

“As a start, the Government should use the Pre-Budget Report to restore the original level of empty property rate.”

November, 2009

Notes to Editors:

The survey was carried out between 26 August and 16 September 2009 and covered private sector firms of all sizes and from all regions, but did not include those from the agricultural sector. 204 firms responded.

  • The references made to positive and negative balances refers to the difference between the weighted percentage of companies reporting an increase and those reporting a decrease, ignoring those reporting no change. For example, if 23% of companies had reported an increase in property holdings, 18% a decrease and 59% no change, then this would represent a positive balance of 5%, implying an overall increase in property holdings.
  • The full survey is attached. Hard copies are available to the media from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU, tel: 020 7395 8239; it is also available from GVA Grimley, 10 Stratton Street, London W1J 8JR and at www.cbi/org.uk/bookshop or www.gvagrimley.co.uk
  • The CBI is the UK’s leading business organisation, speaking for some 240,000 businesses that together employ around a third of the private sector workforce. No other UK organisation represents as many major employers, small and medium-size firms or companies in the manufacturing or service sectors.
  • GVA Grimley Ltd is one of the UK’s leading firms of property consultants operating from 12 offices with 838 fee earners generating a turnover of £148 million year ending 30th April 2008. In the six months ended 31 October 2008 the firm generated turnover of £65 million compared with £72 million in the six months ended 31 October 2007. The firm provides a full range of property-related services including agency, planning and regeneration, rating, building consultancy, investment, management and valuation consultancy. GVA Grimley also offers specialist advice in areas such as telecomms, education, healthcare, retail, contamination, plant and machinery and the automotive and roadside sectors. GVA Grimley is a founding member of GVA Worldwide with a global reach throughout Europe, North America and Australasia, with real estate representatives in 90 offices serving 20 countries. For further information about GVA Grimley please visit www.gvagrimley.co.uk

The CBI Annual Conference will take place on 23 November 2009 at the London Hilton on Park Lane. To accredit, please follow this link: http://www.cbi2009conference.org.uk/media.asp and enter your details on the online Media Accreditation form. You will need to upload a photo.

The CBI Annual Conference always draws together exceptional leaders of business and politics. You can access the day’s programme here: http://www.cbi2009conference.org.uk/programme.asp?ref=programme

Attachments:
Corporate Real Estate Survey - Autumn 2009.pdf
Media Contact:

Stephen Cooke in the CBI Press Office on 020 7395 8239 or out of hours pager on 07623 977854.
Edward Dewar in the GVA Grimley Press Office on 0207 911 2664 or email: edward.dewar@gvagrimley.co.uk

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Stamp Duty – Change demanded by property experts

Industry heavyweights have added their support to the 1808 Coalition, set up by the National Association of Estate Agents (NAEA) and the Association of Residential Lettings Agents (ARLA) to campaign for the Government to modernise Stamp Duty.

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

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Stamp Duty return could have detrimental effect on regional housing market recovery – RICS

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

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Zoopla.co.uk to integrate propertyfinder.com to deliver unrivalled offering to UK estate agents and home movers

Following the acquisition of the PropertyFinder Group from News Int’l over the summer, Zoopla.co.uk – the UK’s fastest growing property portal – will integrate all of its websites onto a single, world-class technology platform.
The move will combine the best features of each website and deliver an enhanced experience for the group’s estate agent members and millions of home movers that use the sites every month.

All of the brands in the Zoopla portfolio – Propertyfinder.com, HotProperty.co.uk and ThinkProperty.com (recently acquired from Guardian Media Group) – will become ‘powered by’ Zoopla and there will be significantly increased marketing investment put behind the Zoopla.co.uk brand from November onwards. UKPropertyShop.co.uk, the leading online agent directory, also owned by Zoopla will remain separate for the time being but members will continue to enjoy enhanced exposure in the directory as part of their membership.

The combined platform will offer huge advantages for agent members and an unrivalled set of features. By uniting the 3rd and 4th most visited property businesses in the UK, agents will benefit from greatly enhanced exposure for their listings and their brands. The Zoopla group will also power an impressive range of property partnerships with leading UK websites including MSN, Yahoo!, Guardian, Tiscali, UpMyStreet and Virgin.

There will be no change to fees for existing members but the combined group will now offer a unique dual pricing structure, giving agents the flexibility to choose between paying a fixed monthly fee for ‘unlimited’ leads or paying on a ‘pay-per-lead’ basis. Agent members will also soon be offered a whole range of new features exclusive to Zoopla.co.uk including appraisal leads from potential vendors and a variety of premium placement opportunities to enable the agent’s brand and listings to be featured more prominently.

Alex Chesterman, CEO of Zoopla Ltd, commented: “The driving force behind our recent acquisitions was a desire to combine the expertise in the businesses and to create a unique, market-leading proposition for our member agents and the millions of home-movers using our websites every month. We plan to continue to transform the online property landscape in the UK and partner with our member agents to deliver more leads, more viewings, more services and help them to win more instructions and business. It is our intent to be the most efficient marketing partner for UK estate agents and provide them the widest possible exposure and best value online marketing services.”

- Ends -

For further information please contact Lawrence Hall on 020 7620 4618 / 07890 078 945 lawrence.hall@zoopla.co.uk.

Notes to editors

Zoopla! awards

We are proud to have won numerous awards and added several trophies to our cabinet:

  • Winner: ‘Best Property Portal 2009′ (Daily Mail UK Property Awards)
  • Winner: ‘Best Real Estate Website 2008′ (Websiteoftheyear.co.uk)
  • Winner: ‘Best Property Website – Gold Award’ (Web User Magazine)
  • Winner: ‘UK’s Most Promising Internet Company 2008′ (First Tuesday)

About Zoopla.co.uk

Zoopla.co.uk is a unique property website offering users information and tools to help them make better-informed property decisions. Our aim is to provide the most comprehensive source of residential property market information in the UK to help buyers, sellers, owners and estate agents alike and give them an advantage in the property market.

In 2007, following the success of bringing DVD rental to the web with LOVEFiLM.com, Zoopla! founders Alex Chesterman and Simon Kain realised that the UK property market had yet to fully enjoy the benefits of the internet in terms of its ability to deliver transparency and efficiency. They set out with the mission to transform the property market for both professionals and consumers by:

  • offering users FREE access to instant value estimates, sold house prices and local information and trends
  • enhancing estate agents’ marketing efficiency by providing exposure/leads on a pay-for-performance basis
  • helping users find local agents and other property professionals to assist them in the transaction process
  • letting buyers make offers on ANY UK home and owners test interest in their homes before choosing to sell
  • creating an environment where anyone can ask/answer questions and share their knowledge about homes

By providing FREE value estimates for EVERY UK home, sold prices and local information as well as hundreds of thousands of property listings for sale/to rent, Zoopla.co.uk is fast-becoming the ultimate destination for users to both search for property and to do their market research. We continue to be the UK’s fastest growing property website and largest and most active property community, with over a million user contributions to our website in the past 12 months alone. We also offer unique features, like TemptMe!. and AskMe!., which allow consumers to gain an insight into the market and discover information they won’t find anywhere else. Our estate agent directory, FindAnAgent and our unique AskAnAgent feature also help guide users to local professionals directly for their expertise.

We launched our website in January 2008 and since then we’ve been on a non-stop path to transform the UK online property sector. Our user numbers continue to grow impressively and we have consistently been the UK’s fastest growing property website for the past 18 months, now attracting over 1.5 million visits per month to our website.

In July 2009 we acquired Thinkproperty.com from the Guardian Media Group and in August 2009 we added Propertyfinder.com, one of the UK’s largest property portals, which we purchased from News International.

Our value estimates are calculated using a proprietary algorithm (secret formula) that we have developed by analysing millions of data points relating to property sales and home characteristics throughout the UK. The algorithm works by comparing relationships between home prices, economic trends and property characteristics in given geographic areas. Our estimates are constantly refined, using the most recent data available and a variety of statistical methodologies, in order to provide the most current information on any home.

Zoopla Ltd is a privately held company with a highly experienced and proven management team, backed by well-respected angel investors and leading venture capital firms Atlas Venture (atlasventure.com) and Octopus Ventures (octopusventures.com).

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Zoopla – Number of property millionaires hit hard by downturn

  • UK’s property millionaires down 35% since market peak in Nov 2007
  • 57% of all UK homes worth over £1 million located in London
  • North East hardest hit, losing 83% of property millionaires in past 2 years

The number of million pound properties in the UK has shrunk by 35% over the past two years, despite the recent upturn in property values, according to Zoopla.co.uk, the UK’s leading house price resource. The sharp decline in house prices stemming from the credit crunch has hurt the ranks of property millionaires in the UK where, at the height of the market in late 2007, 1 in 97 properties was valued at over £1 million but today that figure stands at just 1 in 1500.

Despite the decline in house prices, certain parts of the country remain awash with property millionaires, notably London and the South East, where four fifths (81%) of all million pound homes can be found. The capital is home to 57% of all property millionaires, with the largest share residing in Kensington (W8) where 48% of all properties are worth over £1 million. Outside the capital, Virginia Water in Surrey leads the property millionaire stakes, with 28% of homes in the area worth more than a million pounds, compared to a national average of just 0.88%.

Property millionaires in the North East have been hit the hardest over the past two years, with an 83% reduction in the number of those who can now claim to be property millionaires. Wales has also been hard hit, losing 56% of its property millionaires over the same period.

Alex Chesterman, CEO of Zoopla.co.uk, said: “The housing market downturn has taken its toll on the exclusive ‘property millionaires club’, reducing the number of those who can claim membership from 283,168 in November 2007 to only 183,630 today. London remains the property millionaire capital of Britain, whilst other parts of the country have seen their property millionaire ranks decimated over the past two years, with many of the former million pound pads sitting close to the threshold.”

Decline in number of property millionaires

Region Nov 07 to Nov 09
North East -83%
Wales -56%
Midlands -50%
North West -44%
South West -43%
Scotland -42%
South East -39%
London -29%

Areas with highest proportion of property millionaires

Area Average property values (Nov 09) Properties valued at over £1 million
Kensington (W8) £1,460,013 48.1%
South Kensington (SW7) £1,172,030 39.1%
Chelsea (SW3) £1,182,522 37.0%
Barnes (SW13) £848,429 29.5%
West Brompton (SW10) £993,710 27.9%
Virginia Water, Surrey (GU25) £910,121 27.5%
Notting Hill (W11) £997,885 27.0%
Belgravia & Pimlico (SW1) £834,667 21.8%
Westminster (W1) £779.262 21.3%
St. John’s Wood (NW8) £776,850 20.7%

- Ends -

For further information please contact Lawrence Hall on 020 7620 4618 / 07890 078 945 lawrence.hall@zoopla.co.uk.

Notes to editors

About Zoopla.co.uk

Zoopla.co.uk is a unique property website offering users information and tools to help them make better-informed property decisions. Our aim is to provide the most comprehensive source of residential property market information in the UK to help buyers, sellers, owners and estate agents alike and give them an advantage in the property market.

In 2007, following the success of bringing DVD rental to the web with LOVEFiLM.com, Zoopla! founders Alex Chesterman and Simon Kain realised that the UK property market had yet to fully enjoy the benefits of the internet in terms of its ability to deliver transparency and efficiency. They set out with the mission to transform the property market for both professionals and consumers by:

  • offering users FREE access to instant value estimates, sold house prices and local information and trends
  • enhancing estate agents’ marketing efficiency by providing exposure/leads on a pay-for-performance basis
  • helping users find local agents and other property professionals to assist them in the transaction process
  • letting buyers make offers on ANY UK home and owners test interest in their homes before choosing to sell
  • creating an environment where anyone can ask/answer questions and share their knowledge about homes

By providing FREE value estimates for EVERY UK home, sold prices and local information as well as hundreds of thousands of property listings for sale/to rent, Zoopla.co.uk is fast-becoming the ultimate destination for users to both search for property and to do their market research. We continue to be the UK’s fastest growing property website and largest and most active property community, with over a million user contributions to our website in the past 12 months alone. We also offer unique features, like TemptMe!. and AskMe!., which allow consumers to gain an insight into the market and discover information they won’t find anywhere else. Our estate agent directory, FindAnAgent and our unique AskAnAgent feature also help guide users to local professionals directly for their expertise.

We launched our website in January 2008 and since then we’ve been on a non-stop path to transform the UK online property sector. Our user numbers continue to grow impressively and we have consistently been the UK’s fastest growing property website for the past 18 months, now attracting over 1.5 million visits per month to our website.

In July 2009 we acquired Thinkproperty.com from the Guardian Media Group and in August 2009 we added Propertyfinder.com, one of the UK’s largest property portals, which we purchased from News International.

Our value estimates are calculated using a proprietary algorithm (secret formula) that we have developed by analysing millions of data points relating to property sales and home characteristics throughout the UK. The algorithm works by comparing relationships between home prices, economic trends and property characteristics in given geographic areas. Our estimates are constantly refined, using the most recent data available and a variety of statistical methodologies, in order to provide the most current information on any home.

Zoopla Ltd is a privately held company with a highly experienced and proven management team, backed by well-respected angel investors and leading venture capital firms Atlas Venture (atlasventure.com) and Octopus Ventures (octopusventures.com).

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Developers urge Government to stop dithering as Flood Bill is welcomed

The trade body representing major property developers has welcomed the floods bill announced in the Queen’s Speech, urging ministers to stop consulting and deliver some firm action before the general election.

The British Property Federation (BPF) also expressed concern at the lack of extra funding, but said that giving the Environment Agency more power to act on flood risk would help by offering a greater degree of clarity over who is responsible.

The bill includes plans to tackle surface flood risk and encourages developers to implement sustainable urban drainage systems (SUDs). However, issues over viability could make development and house building more costly if such measures are demanded inappropriately.

The BPF is worried that councils do not have the necessary skills to deal with many of these measures and that the proposals do not take account of viability, in terms of the land required or the cost. For instance, in dense urban areas such as Westminster, it would be impossible to build a large pond to drain water and in many places SUDs would be too costly and push up the price of homes.

Liz Peace, chief executive of the BPF said:

“Landlords and insurers are still likely to have reservations over the government’s funding commitment for flood defences. While the proposals will go some way to reducing risk, what we need to see an end to this obsession with consultation and some real action to pass these quite urgent measures.”

For more info, see the first two pages from the BPF’s draft floods and water bill response.

Contact Andrew Teacher on 020 7802 0113 or ateacher@bpf.org.uk

Downloadable documents
PDF iconDraft Floods and Water Bill Response – 229kB.
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Prime Time For Property Hunters?

HOME SEARCHERS SEIZE CHANCE TO SECURE DREAM HOMES

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 –

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Buy-to-let market grows for first time in two years – Council of Mortgage Lenders

Buy-to-let market grows for first time in two years

Nov 09
Gross lending in the buy-to-let mortgage market grew in the third quarter for the first time in two years, according to data published today by the CML. At £2.1 billion, lending was 10% higher than in the previous three months. The third quarter also saw a similar first increase in two years in the number of buy-to-let loans advanced, from 21,600 to 23,700. But the welcome recovery in buy-to-let lending was from a low base, with current lending volumes sharply lower than their peak in 2007.

The number of outstanding buy-to-let loans grew to 1,205,000, representing 11% of all mortgages by the end of the quarter (compared to 1,180,000 three months earlier). The value of outstanding buy-to-let mortgages increased by 2.5% to £144.2 billion.

Within the buy-to-let market, both lending for house purchase and remortgaging grew in the last three months. As with the mainstream mortgage market, however, house purchase lending was appreciably stronger. Remortgaging capacity was constrained by the unavailability during the quarter of any buy-to-let mortgages at over 80% loan-to-value (LTV). Landlords with existing mortgages at a higher LTV are therefore effectively obliged to stay on their existing lenders’ reversion rates. But with variable interest rates remaining low, it is relatively painless for them to do so and there is little pressure to re-finance.

Low borrowing costs are also contributing to a continued improvement in cases of buy-to-let arrears and the number of landlords facing enforcement action. For the third quarter in a row, there was a decline in the number of buy-to-let mortgages with arrears of more than 1.5% of the balance. In the last three months, the number has fallen from 22,900 to 20,500, representing 1.7% of outstanding buy-to-let mortgages.

The number of properties taken into possession rose in the third quarter, from 1,400 to 1,600, equivalent to 0.14% of all buy-to-let mortgages. Over the same period, however, there was a sharp decline – from 2,500 to 1,700 – in the number of arrears cases in which a receiver of rent was appointed, often as an alternative to seeking possession of the property.

Commenting on the newly-published data, the CML’s director general Michael Coogan said:

“At this stage, the recovery is modest - but the figures show that buy-to-let is here to stay. Buy-to-let lenders are among those facing some of the biggest challenges in raising mortgage funding, so the improved figures are all the more welcome.

“Future demand for housing in all tenures supported by lenders will remain strong, despite mortgage funding constraints and low construction rates. With funding for social housing under pressure, the private rented sector has a strong future. Mortgage lenders will have an important role to play in it, and will continue to help improve choice and standards for private tenants.”

Notes to editors

1. The Council of Mortgage Lenders’ members are banks, building societies and other lenders who together undertake around 98% of all residential mortgage lending in the UK. There are 11 million mortgages in the UK, with loans worth over £1.2 trillion.

2. The CML buy-to-let press release for the final quarter of 2009 will be published on 11 February 2010.

Contact details
Name: Bernard Clarke
Tel: 020 7438 8923
Email: bernard.clarke@cml.org.uk
Name: Sue Anderson
Tel: 020 7438 8924
Email: sue.anderson@cml.org.uk
Name: Sarah Robson
Tel: 020 7438 8922
Email: sarah.robson@cml.org.uk
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FSA proposal for regulation of Buy-To-Let causes growing concern

Costs of buy-to-let regulation must not be passed on to landords

19 Oct 2009

The National Landlords Association (NLA), the UK’s leading representative body for private-residential landlords, has expressed concern that the regulation of buy-to-let will mean increases in the costs of borrowing for landlords.

Although increased protection for smaller, less experienced landlords may be welcome, professional landlords who treat their lettings as a business do not require the same level of protection.

In proposals outlined today by the Financial Services Authority (FSA), buy-to-let would be brought within the FSA’s regulatory regime thereby, they claim, strengthening oversight arrangements and potentially ‘protecting consumers making investment decisions on property.’

David Salusbury, Chairman, NLA, commenting on the Discussion Paper, said:

“As with all proposals, the devil will be in the detail but the FSA may come across problems of definition. When does a so-called ‘amateur landlord’ become a professional landlord? How large does a property portfolio need to become? The answers to these questions may well indicate exactly which investors are in need of further protection and which are capable of protecting their own interests quite adequately.

“While the paper presents a logical approach to the regulation of buy-to-let, some of the rhetoric about reckless lending is playing to the gallery. The focus should be about getting lenders lending once more. The lack of mortgage finance is hampering the housing recovery and, therefore, reducing the available housing stock on offer to those who choose to rent.

“The majority of landlords are financially sound and approach their lettings business in a professional and business-like way. We must ensure this fact is at the heart of all discussions relating to regulation which will affect landlords.”

To download the FSA Mortgage Market Review Discussion Paper go to: http://tinyurl.com/yj3kq9a

For journalists who require more information or case studies, please contact:

Steven Hilton
Media Relations Manager, NLA
Email: steven.hilton@landlords.org.uk
Tel: 020 7840 8906
Mob: 07508 031 084

Notes to Editors:
The National Landlords Association (NLA) exists to protect and promote the interests of private residential landlords. With over 18,000 individual landlords from around the United Kingdom and over 90 local authority associates, it provides a comprehensive range of benefits and services to its members and strives to raise standards in rented accommodation. The NLA seeks to safeguard landlords’ legitimate interests by making their collective voice heard by local and central government and the media. The NLA seeks a fair legislative and regulatory environment for the private-rented sector while aiming to ensure that landlords are aware of their statutory rights and responsibilities towards their tenants.

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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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Inside Track – Investors suffer as Buy-to-Let backfires

If it looks too good to be true… walk away…
The golden rule with property investment and development is research, research and more research and of course the oft used phrase of location, location and location.

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.

Gary Hynes, block of flats in Monton
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
 

Last autumn the block’s managing agent, a surveyor firm from Knutsford in Cheshire, quit, saying: ‘Of 120 developments we manage, we have never experienced ongoing problems of this nature or magnitude.’   

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.

Gary Hynes  

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.

WANT TO KNOW MORE?

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OTHER STORIES 

 THE BUY-TO-LET-TEST  

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In a tough market, it’s vital to ensure your property can be a sound investment. >> Take the buy-to-let test

HOUSE PRICES  

House Prices

See the latest news and analysis on the property market in our special channel…
>> House prices

WHY LENDERS ARE WORRIED 

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British mortgage lenders want us to remove our new house price crash calculator. Read more…  Blog

PROPERTY: HAVE YOUR SAY 

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>> Panorama probe
>> Banks tighten belts
>> Should I buy?
>> Best remortgages
>> Buying in Bulgaria

 WILL BUY-TO-LET COLLAPSE?  

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Predictions of buy-to-let’s demise continue but landlords are refusing to listen.
>> Analysis

Buy-to-let test

Does your potential property pass the buy-to-let test, or will you get your fingers burnt? 

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Take the buy-to-let test
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INVESTIGATION: Buy-to-let property seminars 

Other stories:
 Buy-to-let falters as credit crunch hits
 I left my dream job after buy-to-let mess
 Buy-to-let loans break through 1m barrier
 OFT to fight agents in buy-to-let test case
 Will buy-to-let owners get 10% tax break?
 First-time buyers shut out by Budget
 Should you sell then rent back your home?
 Buyers of second homes face crackdown
 Warning over sale-and-rent-back vultures
 Developers offer huge sums for gardens
 How to buy a home at auction
 How to buy a bargain home in a slowdown
 Inside Track axes property seminars

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