Absent property owners can lock their property titles away from crooks by restricting access by lawyers to the Land Registry’s property database.

The free service for commercial and residential landlords aims to cut the £7 million compensation paid to owners by the Land Registry for property hijacked in more than 70 scams in 2010.

By registering for the service, lawyers must prove they have the permission of the property owner to access any files – and a letter confirming the activity is sent to the property owner.

Chief registrar Malcolm Dawson said: “We take the issue of fraud very seriously and do all we can to reduce the opportunities for fraud and to identify and take corrective action when it has happened.

“Today’s initiative is free for home owners who do not live at the property. It is designed to encourage those who feel their empty or tenanted property might be at risk, to do something to prevent it from being stolen unawares.

“We have introduced a range of additional checks and safeguards in the last four years and work closely with other organisations to do all we can to tackle fraud.”

Dawson revealed that the Land Registry had stopped more than 100 suspected frauds involving properties valued at more than £47 million since September 2009.

Jonathan Smithers, who chairs the conveyancing and land law committee at the Law Society said: “We welcome this initiative by Land Registry. Empty or tenanted properties are more at risk than owner occupied homes and the introduction of this scheme will enable solicitors to help owners to protect their property from fraud and forgery.”

To help prevent forgery, absent owners who feel their property might be at risk or their legal advisor can ask Land Registry to enter a Form LL restriction on the title.

A copy of the form can be downloaded from the Land Registry web site [Opens in new window]

Absent property owners can lock their property titles away from crooks by restricting access by lawyers to the Land Registry’s property database.

The free service for commercial and residential landlords aims to cut the £7 million compensation paid to owners by the Land Registry for property hijacked in more than 70 scams in 2010.

By registering for the service, lawyers must prove they have the permission of the property owner to access any files – and a letter confirming the activity is sent to the property owner.

Chief registrar Malcolm Dawson said: “We take the issue of fraud very seriously and do all we can to reduce the opportunities for fraud and to identify and take corrective action when it has happened.

“Today’s initiative is free for home owners who do not live at the property. It is designed to encourage those who feel their empty or tenanted property might be at risk, to do something to prevent it from being stolen unawares.

“We have introduced a range of additional checks and safeguards in the last four years and work closely with other organisations to do all we can to tackle fraud.”

Dawson revealed that the Land Registry had stopped more than 100 suspected frauds involving properties valued at more than £47 million since September 2009.

Jonathan Smithers, who chairs the conveyancing and land law committee at the Law Society said: “We welcome this initiative by Land Registry. Empty or tenanted properties are more at risk than owner occupied homes and the introduction of this scheme will enable solicitors to help owners to protect their property from fraud and forgery.”

To help prevent forgery, absent owners who feel their property might be at risk or their legal advisor can ask Land Registry to enter a Form LL restriction on the title.

A copy of the form can be downloaded from the Land Registry web site [Opens in new window]

Key points:

-  90% of Olympic rental enquiries are from landlords – limited demand from tenants

-  Cons of short term letting gain may outweigh the pros

-  Stock levels are at an all time low on the sales market

-  Anticipated stamp duty avoidance clamp down unlikely to affect London market

“In my opinion, it is the hoteliers who will benefit from increased occupancy and rates and not the majority of landlords – in fact, I offer a word of caution to investor landlords who are considering losing their long term, blue chip tenants for this short term gain. Looking at the pros first, the clear advantage is that the average increase is 400% of the long term rental value but this may vary depending on the property and location.  Rents will be paid in full and in advance for the entire let but will include all utility bills including gas, water, electricity, water rates, television licence and Council Tax (with the exception of telephone, internet and satellite/cable television).

“However, the major drawback is the void period running up to the let and more importantly, following the let.  If long term investors jump on the Olympic bandwagon and launch their properties back on to the market in September, there is a strong risk that there will be a sudden surge in supply of properties available without the demand.  We are already noticing a reduction in demand levels – I believe that the lettings market plateaued in October 2011 and in some areas, is now marginally dropping.  The reason for this change in market conditions is that the City is not employing its normal influx of expats and it is these tenants who underpin the lettings market. With the economic outlook looking bleak, this situation is not going to improve and therefore, the market will not be able to cope with this extra supply which could drive rents down.

“In addition, anyone wanting to let during the Olympics will also need to apply for planning permission to let their property for less than 90 days.  Without it, they are breaking the law and could be fined up to £20,000.  The future sale of the property could also be affected as any enforcement notice will be registered as a legal charge and this may deter future buyers.  A short let may also invalidate some insurance policies.  If the rent is under £1923 per week, it will become an AST (Assured Shorthold Tenancy) and therefore, a Section 21 Notice must be served.  If the tenant refuses to leave, they may be able to stay for six months until Court proceedings can be initiated.

“The final major risk is wear and tear.  Landlords can’t be sure that the tenant will treat their property as their home during this short period. No deposit will cover the replacement value of furniture and fixtures and fittings, let alone any replacement of carpets or redecorations.

“My advice to long term investors is to ignore the hype and temptation, unless the current tenancy is actually coming to an end in July, or unless you are a homeowner who wants to avoid the Olympic gridlock in London and flee to calmer and possibly warmer climates.”

SALES

Richard Barber, partner in residential sales at W A Ellis, comments:  “Without wishing to sound like a ‘stuck record’, stock levels are at an all time low and invitations to value potential new instructions are at considerable lower levels than at the same time last year.  That said, enquiry levels are still robust and the demand for high quality stock is most encouraging – the ability to satisfy this demand, however, will test the ingenuity and lateral thinking ability of our sales team.  I believe it will be an interesting year and the current indicators would seem to point towards continued increases in capital values.

“Much has been made of George Osborne’s intended attack on the ‘super-rich’ and various stamp duty land tax mitigation schemes.  It has been common practice over the last 20 years for high value London properties to be owned in off shore companies, often registered in Jersey or Guernsey where the sole asset is a property.  As a consequence, when the ‘company’ is sold, stamp duty is charged on the shares of the company and treated as a share transaction as opposed to a property transaction with stamp duty charged at 0.5%, instead of the more punitive rate of 5%.  The 4.5% saving is usually shared between seller and purchaser.

“The Treasury estimate that approximately £1 billion of revenue is being lost annually via the sale of property-based ‘companies’, and, as a consequence, it is widely rumoured that they will legislate to prevent this.  I believe that the Inland Revenue will adopt a similar approach to France, where, if a company’s assets are more than 50% land or property, any share transfer is liable to stamp duty at the rate of 5%.  Consequently, the stamp duty mitigation advantage of holding a property in a company name will be removed.  Naturally, many overseas investors will still choose to own properties in company names as a ‘hedge’ against their own country’s tax regimes.

“I don’t believe that a clamp down – anticipated to be announced in the 21^st March budget – poses a threat to the upper end of the London property market, simply because, in our experience, whilst many properties are purchased in off-shore companies or trusts, very few of these companies are subsequently sold, as the inherent problems of purchasing such companies usually deters cautious purchasers and their solicitors.  Indeed, as anecdotal evidence, only three sales over the last two years have involved the purchase of the shares in a company within our sales office.

“Whilst I do not believe that the Chancellor’s attempts to increase his revenue are misguided, I hope that his estimates are correct!  I do not think that it will negate the current upward movement at the upper end of the London property market.”

W A Ellis is currently marketing a range of properties on the sales and lettings market, for further information, please call: 020 7581 7654 or visit www.waellis.co.uk

Key points:

-  90% of Olympic rental enquiries are from landlords – limited demand from tenants

-  Cons of short term letting gain may outweigh the pros

-  Stock levels are at an all time low on the sales market

-  Anticipated stamp duty avoidance clamp down unlikely to affect London market

“In my opinion, it is the hoteliers who will benefit from increased occupancy and rates and not the majority of landlords – in fact, I offer a word of caution to investor landlords who are considering losing their long term, blue chip tenants for this short term gain. Looking at the pros first, the clear advantage is that the average increase is 400% of the long term rental value but this may vary depending on the property and location.  Rents will be paid in full and in advance for the entire let but will include all utility bills including gas, water, electricity, water rates, television licence and Council Tax (with the exception of telephone, internet and satellite/cable television).

“However, the major drawback is the void period running up to the let and more importantly, following the let.  If long term investors jump on the Olympic bandwagon and launch their properties back on to the market in September, there is a strong risk that there will be a sudden surge in supply of properties available without the demand.  We are already noticing a reduction in demand levels – I believe that the lettings market plateaued in October 2011 and in some areas, is now marginally dropping.  The reason for this change in market conditions is that the City is not employing its normal influx of expats and it is these tenants who underpin the lettings market. With the economic outlook looking bleak, this situation is not going to improve and therefore, the market will not be able to cope with this extra supply which could drive rents down.

“In addition, anyone wanting to let during the Olympics will also need to apply for planning permission to let their property for less than 90 days.  Without it, they are breaking the law and could be fined up to £20,000.  The future sale of the property could also be affected as any enforcement notice will be registered as a legal charge and this may deter future buyers.  A short let may also invalidate some insurance policies.  If the rent is under £1923 per week, it will become an AST (Assured Shorthold Tenancy) and therefore, a Section 21 Notice must be served.  If the tenant refuses to leave, they may be able to stay for six months until Court proceedings can be initiated.

“The final major risk is wear and tear.  Landlords can’t be sure that the tenant will treat their property as their home during this short period. No deposit will cover the replacement value of furniture and fixtures and fittings, let alone any replacement of carpets or redecorations.

“My advice to long term investors is to ignore the hype and temptation, unless the current tenancy is actually coming to an end in July, or unless you are a homeowner who wants to avoid the Olympic gridlock in London and flee to calmer and possibly warmer climates.”

SALES

Richard Barber, partner in residential sales at W A Ellis, comments:  “Without wishing to sound like a ‘stuck record’, stock levels are at an all time low and invitations to value potential new instructions are at considerable lower levels than at the same time last year.  That said, enquiry levels are still robust and the demand for high quality stock is most encouraging – the ability to satisfy this demand, however, will test the ingenuity and lateral thinking ability of our sales team.  I believe it will be an interesting year and the current indicators would seem to point towards continued increases in capital values.

“Much has been made of George Osborne’s intended attack on the ‘super-rich’ and various stamp duty land tax mitigation schemes.  It has been common practice over the last 20 years for high value London properties to be owned in off shore companies, often registered in Jersey or Guernsey where the sole asset is a property.  As a consequence, when the ‘company’ is sold, stamp duty is charged on the shares of the company and treated as a share transaction as opposed to a property transaction with stamp duty charged at 0.5%, instead of the more punitive rate of 5%.  The 4.5% saving is usually shared between seller and purchaser.

“The Treasury estimate that approximately £1 billion of revenue is being lost annually via the sale of property-based ‘companies’, and, as a consequence, it is widely rumoured that they will legislate to prevent this.  I believe that the Inland Revenue will adopt a similar approach to France, where, if a company’s assets are more than 50% land or property, any share transfer is liable to stamp duty at the rate of 5%.  Consequently, the stamp duty mitigation advantage of holding a property in a company name will be removed.  Naturally, many overseas investors will still choose to own properties in company names as a ‘hedge’ against their own country’s tax regimes.

“I don’t believe that a clamp down – anticipated to be announced in the 21^st March budget – poses a threat to the upper end of the London property market, simply because, in our experience, whilst many properties are purchased in off-shore companies or trusts, very few of these companies are subsequently sold, as the inherent problems of purchasing such companies usually deters cautious purchasers and their solicitors.  Indeed, as anecdotal evidence, only three sales over the last two years have involved the purchase of the shares in a company within our sales office.

“Whilst I do not believe that the Chancellor’s attempts to increase his revenue are misguided, I hope that his estimates are correct!  I do not think that it will negate the current upward movement at the upper end of the London property market.”

W A Ellis is currently marketing a range of properties on the sales and lettings market, for further information, please call: 020 7581 7654 or visit www.waellis.co.uk

Cover for millions of homes, including buy to lets, could be withdrawn as early as June if the government fails to meet the demands of insurers to reinstate flood protection cuts.

Home insurers pledged to offer insurance to at risk homes, providing the government invested money in flood protection – but the agreement runs out on July 1, 2013 and millions has already been cut from budgets earmarked for improving sea walls and river banks.

Cover starting at the end of June could be withdrawn for homes in flood risk areas if no agreement is reached soon as they will be in force after the date the current agreement ends.

Simon Douglas, director of broker AA Insurance, said: “Flood protection is a national priority, yet many people in flood-prone areas may find their homes difficult to insure from later this year.

“Some insurers are telling us that flood-prone homeowners might not be able to renew their cover later this year, because their new policy will extend beyond 1 July 2013: with all the implications for property value and mortgage availability that this implies.”

No insurance cover will blight property values, as they will be difficult to sell and in some cases, mortgage lenders may not offer funding.

Many landlords and other home owners could also breach mortgage conditions that require them to have buildings insurance in place for the life of the loan.

Richard Hinton, business development director at SearchFlow, a firm handling property searches for conveyancers, said: “Buyers will be able to obtain flood insurance for the next few months, but the long-term prospects of properties at risk of flooding are potentially bleak.

“Buyers purchasing in high-risk flood areas face the possibility of very high premiums, significant reductions in value, less access to mortgage finance and even action taken by the mortgage lender due to breach of the mortgage agreements.”

Check if you have a property at risk by going to the Environment Agency flood pages [Opens in new window]

Cover for millions of homes, including buy to lets, could be withdrawn as early as June if the government fails to meet the demands of insurers to reinstate flood protection cuts.

Home insurers pledged to offer insurance to at risk homes, providing the government invested money in flood protection – but the agreement runs out on July 1, 2013 and millions has already been cut from budgets earmarked for improving sea walls and river banks.

Cover starting at the end of June could be withdrawn for homes in flood risk areas if no agreement is reached soon as they will be in force after the date the current agreement ends.

Simon Douglas, director of broker AA Insurance, said: “Flood protection is a national priority, yet many people in flood-prone areas may find their homes difficult to insure from later this year.

“Some insurers are telling us that flood-prone homeowners might not be able to renew their cover later this year, because their new policy will extend beyond 1 July 2013: with all the implications for property value and mortgage availability that this implies.”

No insurance cover will blight property values, as they will be difficult to sell and in some cases, mortgage lenders may not offer funding.

Many landlords and other home owners could also breach mortgage conditions that require them to have buildings insurance in place for the life of the loan.

Richard Hinton, business development director at SearchFlow, a firm handling property searches for conveyancers, said: “Buyers will be able to obtain flood insurance for the next few months, but the long-term prospects of properties at risk of flooding are potentially bleak.

“Buyers purchasing in high-risk flood areas face the possibility of very high premiums, significant reductions in value, less access to mortgage finance and even action taken by the mortgage lender due to breach of the mortgage agreements.”

Check if you have a property at risk by going to the Environment Agency flood pages [Opens in new window]

In these troubling financial times it is impossible for landlords to predict whether their tenant’s circumstances will change in the future and whether they will always be able to pay the rent, even though they have a successful reference. With the number of rental arrears on the increase across the nation, it is important that landlords don’t let their investment suffer.

Steve Barnes, Broking Manager, said:

“Drawn out legal wrangles, legal expenses and missed rental payments can be a nightmare and play havoc with the landlord’s investment and financial planning. In the current financial climate our customers wanted a policy that would be cost effective and provide legal assistance and rent guarantee in the event of a tenant falling into rental arrears.  That is why we have launched Total Rent Guarantee Insurance.” (http://www.totallandlordinsurance.co.uk/products-and-services/total-rent-guarantee-insurance/)

The policies are available both online and by phone, although there are significant discounts if purchased online.  Online, landlords can purchase legal expenses for just £45 saving £31.85 and combined legal expenses & rent guarantee insurance for just £94.50 saving £31.80 over the call centre price.

For more information on Total Rent Guarantee Insurance – go to www.totallandlordinsurance.co.uk.

Total Landlord Insurance brought to you by Hamilton Fraser Insurance

Total Landlord Insurance is a trading name of HFIS plc. HFIS plc is authorised and regulated by the Financial Services Authority.

For general information about Total Landlord Insurance visit our web site at www.totallandlordinsurance.co.uk or telephone on 0800 63 43 880

By Luke Trevail of TorFX

The longer term picture is unclear, but throughout January the Merkel & Sarkozy ‘coalition’ cemented itself as the leading factor in deciding, influencing and potentially commanding what direction the euro-zone takes from here.

This outcome is largely yet to be determined but from a currency point-of-view the markets do not like this uncertainty, with only a glut of weak UK fundamentals keeping rates against the pound below €1.20 (0.833) this last couple of weeks.

January saw UK economic growth shrink by more than expected throughout quarter four of 2011, posting a -0,2% contraction. Two quarters of negative growth to an economy is the definition of a recession and it’s this rather worrying banana skin that’s keeping the pound at bay for now.

It’s fair to assume however that for anyone who is looking to buy the euro over the coming month will potentially get a better rate than where we are now as the euro will likely continue to suffer from ongoing difficulties that may drive the market higher.

This should sound as a warning for anyone who is sat with euros and wanting to get these moved back to the UK as the threat of a move up towards €1.25 could be on the cards.

Using a specialist FX broker such as TORfx will allow you benefit from trading options that are not available through the bank such a limit and stop orders which are designed to achieve you a better rate than what’s currently available while protecting you against any adverse moves along with forward buying options which allows you to secure a rate based on where the market is now and pay your money to us for ongoing exchange at a date in the future.

As we bid farewell to January, the next few weeks will prove pivotal in deciding how the fall out of the Euro Debt Crisis will affect the currency markets. Volatility will be key, so the advice to keep abreast with the current market, rather than lovingly remember rates of years gone by is, as ever important in determining what worth your money can command.

Do you need to buy or sell foreign currency? Click here for a free quote from specialist currency brokers TorFX.

By Luke Trevail of TorFX

The longer term picture is unclear, but throughout January the Merkel & Sarkozy ‘coalition’ cemented itself as the leading factor in deciding, influencing and potentially commanding what direction the euro-zone takes from here.

This outcome is largely yet to be determined but from a currency point-of-view the markets do not like this uncertainty, with only a glut of weak UK fundamentals keeping rates against the pound below €1.20 (0.833) this last couple of weeks.

January saw UK economic growth shrink by more than expected throughout quarter four of 2011, posting a -0,2% contraction. Two quarters of negative growth to an economy is the definition of a recession and it’s this rather worrying banana skin that’s keeping the pound at bay for now.

It’s fair to assume however that for anyone who is looking to buy the euro over the coming month will potentially get a better rate than where we are now as the euro will likely continue to suffer from ongoing difficulties that may drive the market higher.

This should sound as a warning for anyone who is sat with euros and wanting to get these moved back to the UK as the threat of a move up towards €1.25 could be on the cards.

Using a specialist FX broker such as TORfx will allow you benefit from trading options that are not available through the bank such a limit and stop orders which are designed to achieve you a better rate than what’s currently available while protecting you against any adverse moves along with forward buying options which allows you to secure a rate based on where the market is now and pay your money to us for ongoing exchange at a date in the future.

As we bid farewell to January, the next few weeks will prove pivotal in deciding how the fall out of the Euro Debt Crisis will affect the currency markets. Volatility will be key, so the advice to keep abreast with the current market, rather than lovingly remember rates of years gone by is, as ever important in determining what worth your money can command.

Do you need to buy or sell foreign currency? Click here for a free quote from specialist currency brokers TorFX.

Every small HMO in Oxford must sign up with the council’s scheme  – or the owners face fines of up to £20,000 per property for failing to register.

Oxford City Council reckons the city has 5,000 HMOS mainly let to students.

Around 1,000 are large HMOs subject to mandatory licensing, while the rest are small HMOs are shared family houses often shared by three to five students.

Councillor Joe McManners, the city council’s board member for housing, said: “The team have worked hard to licence HMOs in the city and we are well on the way to issuing a thousand HMO licences.

“HMOs have long been recognised as being a particular problem in the city, with many examples of poor quality homes and in some cases being poorly managed.  These damage the reputation of good landlords and we are determined to put this right, and stop those doing the right thing being undercut by cowboys.

“The private rented sector is hugely important to the residents of Oxford, not just in terms of providing much needed accommodation, but also with the impact that it can have on local communities and licensing every HMO will help drive up standards for everyone.”

A council team inspects every HMO before issuing a licence to make sure they reach tough fire and health and safety standards.

If tenants report poor living conditions, the council can withdraw licences and bar the owners from managing HMOs.

“Enforcement action is being taken against those landlords and agents who are not complying with the scheme and some of them have been taken to court and fined. Now every HMO in the city needs a licence, there is nowhere left to hide,” said McManners.

Meanwhile, the council may stop the city’s two universities moving in to new buildings as student numbers in private rented homes breach agreed limits.

Oxford University and Oxford Brookes University are each allowed to house students in private accommodation in the city – but Oxford has 3,251 students in shared houses, while Oxford Brookes has 3,493.

If the universities cannot bring the number under 3,000 each, the council will bar them from moving in to new multi-million pound campus developments due to open later this year.

Every small HMO in Oxford must sign up with the council’s scheme  – or the owners face fines of up to £20,000 per property for failing to register.

Oxford City Council reckons the city has 5,000 HMOS mainly let to students.

Around 1,000 are large HMOs subject to mandatory licensing, while the rest are small HMOs are shared family houses often shared by three to five students.

Councillor Joe McManners, the city council’s board member for housing, said: “The team have worked hard to licence HMOs in the city and we are well on the way to issuing a thousand HMO licences.

“HMOs have long been recognised as being a particular problem in the city, with many examples of poor quality homes and in some cases being poorly managed.  These damage the reputation of good landlords and we are determined to put this right, and stop those doing the right thing being undercut by cowboys.

“The private rented sector is hugely important to the residents of Oxford, not just in terms of providing much needed accommodation, but also with the impact that it can have on local communities and licensing every HMO will help drive up standards for everyone.”

A council team inspects every HMO before issuing a licence to make sure they reach tough fire and health and safety standards.

If tenants report poor living conditions, the council can withdraw licences and bar the owners from managing HMOs.

“Enforcement action is being taken against those landlords and agents who are not complying with the scheme and some of them have been taken to court and fined. Now every HMO in the city needs a licence, there is nowhere left to hide,” said McManners.

Meanwhile, the council may stop the city’s two universities moving in to new buildings as student numbers in private rented homes breach agreed limits.

Oxford University and Oxford Brookes University are each allowed to house students in private accommodation in the city – but Oxford has 3,251 students in shared houses, while Oxford Brookes has 3,493.

If the universities cannot bring the number under 3,000 each, the council will bar them from moving in to new multi-million pound campus developments due to open later this year.

Publicity

Irresistible deals of 25pc or more off on a selection of new homes in the Ribera del Marlin luxury development in Sotogrande’s Marina. The very best Spain has to offer at a price never seen before.

Sotogrande Ribera del Marlin

Sotogrande Ribera del Marlin

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A summary of the Latest Euribor and Spanish mortgage news

Euribor (12 months), the interest rate typically used to calculate mortgage repayments in Spain, fell to 1.837pc in January, a percentage change of -8.6pc on a monthly basis, but +18.5pc on an annualised basis.

As a result, repayments for the average €150,000-mortgage resetting now will go up by around €240/year.

Analysts expect Euribor to remain stead or fall slightly for the rest of the year, in line with the ECB’s 1pc interest rates.

New mortgage lending slumps again

Low interest rates sound like good news for borrowers, but only if they can get a mortgage. Unfortunately, it’s never been harder to get a mortgage in Spain, as the chart below shows. The number of new mortgages signed collapsed an annualised 35.8pc to 28,113 in November, just a fraction above September’s contemporary low.

Publicity

With Taylor Wimpey’s trademark quality, Lagunas del Sol II offers 2 & 3 bedroom townhouses in Rojales, Alicante, next to Ciudad Quesada and walking distance to all ameneties, with prices starting at just €114,920 (less than £100,000).

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The G-14 association of Spain’s leading developers says it will ask the Government to introduce mortgage interest tax relief on holiday-homes to stimulate demand and deal with Spain’s problematic over-supply of empty new holiday homes on the coast.

The Government has just reintroduced mortgage interest tax relief on main homes, despite that fact that it favours owner-occupiers at the expense of those who rent, and makes it harder for Spain to reach its stated goal of increasing the rental market. Developers want a similar tax break for holiday-homes.

Some industry voices like Antonio Carroza of Alquiler Seguro – a rental company – have wasted no time in describing the request as “irresponsible”. He believes it is wrong to use public money to subsidise “large developers so they can sell second homes that should never have been built,” he said, quoted in the Spanish press.

In any event the tax relief would only apply to Spanish residents, not foreigners buying holiday-homes in Spain.

The G-14 has also called on the Government to reduce the ITP sales tax on resale properties.

The G-14 association of Spain’s leading developers says it will ask the Government to introduce mortgage interest tax relief on holiday-homes to stimulate demand and deal with Spain’s problematic over-supply of empty new holiday homes on the coast.

The Government has just reintroduced mortgage interest tax relief on main homes, despite that fact that it favours owner-occupiers at the expense of those who rent, and makes it harder for Spain to reach its stated goal of increasing the rental market. Developers want a similar tax break for holiday-homes.

Some industry voices like Antonio Carroza of Alquiler Seguro – a rental company – have wasted no time in describing the request as “irresponsible”. He believes it is wrong to use public money to subsidise “large developers so they can sell second homes that should never have been built,” he said, quoted in the Spanish press.

In any event the tax relief would only apply to Spanish residents, not foreigners buying holiday-homes in Spain.

The G-14 has also called on the Government to reduce the ITP sales tax on resale properties.

Whilst the central government in Madrid is making noises about reducing the sales tax (ITP) on resale properties to bring it more in line with VAT rates on new property (4pc), the regional government in Andalucia has introduced a sneaky increase in the ITP rate making it more expensive to buy a resale property in Andalucia.

As a result of this change, someone buying a resale property in Andalucia for €1 million will now pay €89,000 in ITP, and increase of €13,000, or 17pc more than last year.

This makes the tax difference between new builds, which incur VAT, and resales wider than ever. VAT on a new home costing €1 million would be just €40,000, compared to €89,000 of ITP for a resale property. So Andalucia’s tax policy discriminates heavily against private vendors in favour of banks and developers selling new homes.

The sneaky way in which the tax was introduced, without warning on Saturday 31 December, speaks volumes about how popular this tax increase is going to be. It is likely to increase the popularity of undeclared cash payments, something that had been on the decline for years.

The following table sums up the changes in Andalucia’s ITP tax.

It is estimated to be costing the British economy in excess of £800 million per year and the UK’s leading property insurance specialists, Cadogan Keelan Westall has seen claims for non-ferrous metals rise by over 45 per cent in 2011.

Scrap metal is becoming more valuable, due to an increase in export and demand. Police are treating this crime as a serious issue as it has seen an increase of 150 per cent. Robbers target aluminium, copper, steel, bronze and other ferrous and non-ferrous metals. Items most commonly stolen include manhole covers, copper cables, aluminium signs and metal beer kegs. Metal has also been stolen from churchyards.

In recent years, Cadogan Keelan Westall has seen the following metal stolen from commercial property:

Lead, copper and stainless steel roof coverings
Bay window roofs and roof flashings
Copper lightning conductors
Lead and copper rainwater pipes
Bronze statues
Metal garden ornaments
Iron gates

Jonathan Hackett, Client Development Director at Cadogan Keelan Westall comments: “While all properties can be targeted for their metal, commercial property is at more at risk than residential property. These are crimes based on opportunity more than planning – metal thieves sometimes pose as builders ‘legitimately’ working on property.

“We are urging property owners to be vigilant and follow a few simple measures to protect their property.”

Top tips to protect your metal:

Don’t allow unfamiliar vehicles to enter your site. In addition, record and report all suspicious incidents, noting vehicle registration numbers and descriptions and numbers of occupants.

Secure all cables on site. Consider using secure alarmed containers or ground anchors. If this is not possible, make sure all cable is covered so you do not advertise its presence.

Make sure security guards are fully aware of the issues regarding cable theft. You may wish to employ security guards to coincide with the delivery of, or presence of, copper cable.

Photograph cables before installation or retain small samples (1-2ft). This will help police identify property should a theft occur.

Don’t leave any tools lying around that burglars could use to steal metal. In particular disc cutters and saws should be locked away.

Insist on all staff wearing ID and instruct security guards to challenge anyone not displaying ID.

Don’t be afraid to question people working on your site. Thieves will often wear high-vis jackets – make sure they are who they say they are and if in doubt call the police.

If you have other security measures such as CCTV lighting or alarms make sure that they are working and fit for purpose.

Inform British Transport Police if you have received or are expecting deliveries of copper cable. This information will be used to shape uniform pro-active police patrols. Call free phone 0800 405 040.

In addition, you can also send in descriptions of the stolen items to the British Metal Recycling Association who will, within hours, send the details of the item to all their members. This move might slow the thieves down if they try to sell the items.

Cadogan Keelan Westall works with some of the largest blue chip property owners, investors and managers in the UK. The company’s specialist property experience gives them extensive knowledge of property industry and a real understanding of the needs of commercial property professionals.

For further information on Cadogan Keelan Westall, please call 01420 471 968 or visit www.cadogankeelanwestall.com

Cadogan Keelan Westall is part of the Property & Commercial division of Barbon Insurance Group Limited which has a gross written premium of more than £150 million and is committed to delivering innovative insurance solutions, as well as risk management and consultancy services.

The company has built an impressive reputation through knowledge, experience and a commitment to understanding its customers’ businesses. Cadogan Keelan Westall is a trading name of Barbon Insurance Group Limited, which is authorised and regulated by the Financial Services Authority

Many landlords with European property opt to place their insurances with a ‘local’ carrier in the belief that it will be convenient and more competitive. Insurance policies underwritten in Europe can typically have high excesses – between 2,500 – 5,000 euros, a more bureaucratic claims processing service and worrying shortfalls in cover especially for flooding, which is now becoming a more common occurrence across continental Europe.

Local insurance companies also tend to be smaller than internationally recognised insurers and have not been rated by ratings agencies such as Standard & Poors or AM Best for financial security. With the risk that these local carriers may fall into administration or liquidation in these uncertain financial times, landlords can be left exposed on their multi-million pound assets.

Jonathan Hackett, Client Development Director at Cadogan Keelan Westall comments: “Landlords that utilise local insurers directly will face local insurance customs and the local language differences can make the service and administrative process arduous. Landlords will have peace of mind, wider cover, more control and far less exclusions if they insure their properties under a pan-European UK Master Insurance Programme.”

Cadogan Keelan Westall has put together a few tips on what to check for an insurance policy for your overseas property:

- Excesses / Deductibles – this is the landlord’s contribution to the first part of any claim and these tend to be high across Europe for standard perils.

- Cover for Fire, Flood, and Storm – These perils whilst being covered by local insurance carriers can be aggregated for an insurance policy period i.e. the limit of cover provided can become exhausted after several or even a couple of large losses and therefore no cover is provided for further claims in that policy period.

- Glass Damage, Riots, Strikes and Civil Commotions, Malicious Damage – These perils can be excluded from “standard” local policies (but may be available locally for an additional premium). Newly developed glass-structured buildings are becoming more common across Europe’s major financial districts, riots and disturbances are becoming a feature of modern society as the financial crisis deepens and malicious damage, in particular graffiti, is a common occurrence on industrial and retail buildings in Germany.

- Checks should be done on the financial security of any insurance carrier and length of time they have been in operation.

Cadogan Keelan Westall works with some of the largest blue chip real estate investors and managers in the UK. The company’s specialist property experience gives them extensive knowledge of property industry and a real understanding of the needs of commercial property professionals.

For further information on Cadogan Keelan Westall and its overseas commercial property insurance visit www.cadogankeelanwestall.com or telephone 020 7491 8179

Cadogan Keelan Westall is part of the Property & Commercial division of Barbon Insurance Group Limited which has a gross written premium of more than £150 million and is committed to delivering innovative insurance solutions, as well as risk management and consultancy services.

The company has built an impressive reputation through knowledge, experience and a commitment to understanding its customers’ businesses. Cadogan Keelan Westall is a trading name of Barbon Insurance Group Limited, which is authorised and regulated by the Financial Services Authority

Many landlords with European property opt to place their insurances with a ‘local’ carrier in the belief that it will be convenient and more competitive. Insurance policies underwritten in Europe can typically have high excesses – between 2,500 – 5,000 euros, a more bureaucratic claims processing service and worrying shortfalls in cover especially for flooding, which is now becoming a more common occurrence across continental Europe.

Local insurance companies also tend to be smaller than internationally recognised insurers and have not been rated by ratings agencies such as Standard & Poors or AM Best for financial security. With the risk that these local carriers may fall into administration or liquidation in these uncertain financial times, landlords can be left exposed on their multi-million pound assets.

Jonathan Hackett, Client Development Director at Cadogan Keelan Westall comments: “Landlords that utilise local insurers directly will face local insurance customs and the local language differences can make the service and administrative process arduous. Landlords will have peace of mind, wider cover, more control and far less exclusions if they insure their properties under a pan-European UK Master Insurance Programme.”

Cadogan Keelan Westall has put together a few tips on what to check for an insurance policy for your overseas property:

- Excesses / Deductibles – this is the landlord’s contribution to the first part of any claim and these tend to be high across Europe for standard perils.

- Cover for Fire, Flood, and Storm – These perils whilst being covered by local insurance carriers can be aggregated for an insurance policy period i.e. the limit of cover provided can become exhausted after several or even a couple of large losses and therefore no cover is provided for further claims in that policy period.

- Glass Damage, Riots, Strikes and Civil Commotions, Malicious Damage – These perils can be excluded from “standard” local policies (but may be available locally for an additional premium). Newly developed glass-structured buildings are becoming more common across Europe’s major financial districts, riots and disturbances are becoming a feature of modern society as the financial crisis deepens and malicious damage, in particular graffiti, is a common occurrence on industrial and retail buildings in Germany.

- Checks should be done on the financial security of any insurance carrier and length of time they have been in operation.

Cadogan Keelan Westall works with some of the largest blue chip real estate investors and managers in the UK. The company’s specialist property experience gives them extensive knowledge of property industry and a real understanding of the needs of commercial property professionals.

For further information on Cadogan Keelan Westall and its overseas commercial property insurance visit www.cadogankeelanwestall.com or telephone 020 7491 8179

Cadogan Keelan Westall is part of the Property & Commercial division of Barbon Insurance Group Limited which has a gross written premium of more than £150 million and is committed to delivering innovative insurance solutions, as well as risk management and consultancy services.

The company has built an impressive reputation through knowledge, experience and a commitment to understanding its customers’ businesses. Cadogan Keelan Westall is a trading name of Barbon Insurance Group Limited, which is authorised and regulated by the Financial Services Authority

Landlords looking to get more for their money should consider installing Sleep Space, a brand new electro mechanical bed system. The perfect solution for studio flats, bedsits or student accommodation – in fact anywhere space is at a premium – Sleep Space effectively doubles tenants’ available living space and allows you to charge higher rents. Plus, if you are looking to sell at any time, the extra bedrooms Sleep Space provides will increase the value of your properties.

Sleep Space is simple to operate, robust yet comfortable and extremely cost-effective. Plus, unlike other products of its type, no structural survey is required before fitting. Designed and developed by established Yorkshire-based property developers John and Rosalyn Totty, Sleep Space is the affordable alternative to more expensive models on the market.

Rosalyn explains “We were called upon to fit a number of concealed bed systems for some luxury projects we were undertaking, but the cost was prohibitive for the average person. The main reason for the expense was the fact that the entire system, including an extremely heavy counterbalance system had to be imported from abroad. We believed that there must be a more cost-effective solution, so we looked into the matter and consulted specialist designers and engineers. The solution was Sleep Space.”

The Sleep Space design is simple, yet incredibly effective. Instead of using a counterbalance system the robust steel bed is lifted and lowered along two slimline channels via an electronic steel cable pulley system, which is powered by a 24V DC electric motor. Once fitted, there is no need to perform regular calibrations and, perhaps more importantly, no structural survey is required. It can used in either new-build or retro-fit projects and can be fitted to brick, block, stone or stud walling.

Sleep Space’s streamlined design means that it is virtually invisible. The bed is hidden in soffits within the ceiling space and the silent operating mechanism is concealed behind decorative panels. These are supplied in MDF or plywood as standard but can be finished in any type of material – for example marble, granite, melamine, polished hardwood, vinyl graphics etc.

Not only is Sleep Space simple to operate, it is also extremely safe, incorporating safety features and

having undergone rigorous testing prior to fitting by trained experts. Since it is not a counterbalance system, there is no need for regular recalibration, so it is virtually maintenance-free. The area required to house the operating mechanism is just 200mm and the standard ceiling soffit depth for the bed is just 50mm – this can be adapted to suit the depth of mattress used.

Sleep Space beds are available in Single, Double, King, Queen and Bespoke sizes. Prices start at just £3250 + VAT for a standard double bed system. Fitting is charged extra.

There is currently a Patent Pending on Sleep Space’s unique design.

For more information and to view a demonstration video, please visit www.sleep-space.co.uk

www.sleep-space.co.uk

Landlords looking to get more for their money should consider installing Sleep Space, a brand new electro mechanical bed system. The perfect solution for studio flats, bedsits or student accommodation – in fact anywhere space is at a premium – Sleep Space effectively doubles tenants’ available living space and allows you to charge higher rents. Plus, if you are looking to sell at any time, the extra bedrooms Sleep Space provides will increase the value of your properties.

Sleep Space is simple to operate, robust yet comfortable and extremely cost-effective. Plus, unlike other products of its type, no structural survey is required before fitting. Designed and developed by established Yorkshire-based property developers John and Rosalyn Totty, Sleep Space is the affordable alternative to more expensive models on the market.

Rosalyn explains “We were called upon to fit a number of concealed bed systems for some luxury projects we were undertaking, but the cost was prohibitive for the average person. The main reason for the expense was the fact that the entire system, including an extremely heavy counterbalance system had to be imported from abroad. We believed that there must be a more cost-effective solution, so we looked into the matter and consulted specialist designers and engineers. The solution was Sleep Space.”

The Sleep Space design is simple, yet incredibly effective. Instead of using a counterbalance system the robust steel bed is lifted and lowered along two slimline channels via an electronic steel cable pulley system, which is powered by a 24V DC electric motor. Once fitted, there is no need to perform regular calibrations and, perhaps more importantly, no structural survey is required. It can used in either new-build or retro-fit projects and can be fitted to brick, block, stone or stud walling.

Sleep Space’s streamlined design means that it is virtually invisible. The bed is hidden in soffits within the ceiling space and the silent operating mechanism is concealed behind decorative panels. These are supplied in MDF or plywood as standard but can be finished in any type of material – for example marble, granite, melamine, polished hardwood, vinyl graphics etc.

Not only is Sleep Space simple to operate, it is also extremely safe, incorporating safety features and

having undergone rigorous testing prior to fitting by trained experts. Since it is not a counterbalance system, there is no need for regular recalibration, so it is virtually maintenance-free. The area required to house the operating mechanism is just 200mm and the standard ceiling soffit depth for the bed is just 50mm – this can be adapted to suit the depth of mattress used.

Sleep Space beds are available in Single, Double, King, Queen and Bespoke sizes. Prices start at just £3250 + VAT for a standard double bed system. Fitting is charged extra.

There is currently a Patent Pending on Sleep Space’s unique design.

For more information and to view a demonstration video, please visit www.sleep-space.co.uk

www.sleep-space.co.uk

All agree that prices will continue falling, the question is how much, and can the data be trusted?

Spanish house prices have fallen 18pc from the peak, according to the Government’s House Price Index. Is that enough? Not according to Isidre Fainé (pictured above), head of La Caixa, Spain’s biggest savings bank, who says house prices could fall 50 to 60pc peak-to-trough.

Fainé doesn’t have a crystal ball, but he does have the biggest branch network in Spain at his command. And unlike many other Spanish banks, La Caixa can probably afford the write-downs such a fall would imply. We have to assume he is well informed.

La Caixa are not alone forecasting more big falls. International rating agency Fitch say prices need to fall by 30 to 35pc peak-to-trough, or almost double what they have so far, before the market bottoms out.

Who am I to disagree with such illustrious names, but I have to point out an important flaw in all arguments that use the official house price index to show that prices haven’t fallen enough. The official index is more misleading than it is revealing. In reality average prices are down somewhere between 30 and 50pc, not the 18pc the index would have us believe.

This faulty index is a big problem for Spain. The index is taken at face value by international organisations and publications like The Economist, the OECD, the IMF, the European Commission, not to mention rating agencies like Fitch. Thus they all think Spanish property prices have only fallen 18pc and have much further to fall, when in reality the prices at which homes actually sell have fallen much more than that.

True, there is still a lot of over-priced property on the market, but what is a house price index supposed to show? Asking prices or sales price? The latter, of course.

All agree that prices will continue falling, the question is how much, and can the data be trusted?

Spanish house prices have fallen 18pc from the peak, according to the Government’s House Price Index. Is that enough? Not according to Isidre Fainé (pictured above), head of La Caixa, Spain’s biggest savings bank, who says house prices could fall 50 to 60pc peak-to-trough.

Fainé doesn’t have a crystal ball, but he does have the biggest branch network in Spain at his command. And unlike many other Spanish banks, La Caixa can probably afford the write-downs such a fall would imply. We have to assume he is well informed.

La Caixa are not alone forecasting more big falls. International rating agency Fitch say prices need to fall by 30 to 35pc peak-to-trough, or almost double what they have so far, before the market bottoms out.

Who am I to disagree with such illustrious names, but I have to point out an important flaw in all arguments that use the official house price index to show that prices haven’t fallen enough. The official index is more misleading than it is revealing. In reality average prices are down somewhere between 30 and 50pc, not the 18pc the index would have us believe.

This faulty index is a big problem for Spain. The index is taken at face value by international organisations and publications like The Economist, the OECD, the IMF, the European Commission, not to mention rating agencies like Fitch. Thus they all think Spanish property prices have only fallen 18pc and have much further to fall, when in reality the prices at which homes actually sell have fallen much more than that.

True, there is still a lot of over-priced property on the market, but what is a house price index supposed to show? Asking prices or sales price? The latter, of course.