Property Mole Rotating Header Image

UK

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

Eric Pickles housing move ‘unlawful’

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

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

The move was ruled unlawful by the High Court.

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

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

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

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

‘Parliamentary democracy’

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

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

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

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

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

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

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

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

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

‘Embarrassing questions’

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Link to original BBC article

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

Paragon returns to lending

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

New funding

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

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

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

Lending strategy

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

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

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

Buy-to-let market

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

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

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

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

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

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

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

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

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

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

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

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

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

* seasonally adjusted

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

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

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

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

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

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

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

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

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

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

Monthly UK House Price Statistics

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


 

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

Nationwide: House Price Inflation Reaches Double Digits

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

* seasonally adjusted

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

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

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

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


 

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

Future housing conference – Council of Mortgage Lenders

Future housing conference information

24 February 2010

Conference time: 0845hrs – 1630hrs

Background

The CML compile and publish a range of statistics on the UK housing and mortgage markets including key data on mortgage lending, arrears and possessions and market segments such as buy-to-let. This unparalleled knowledge and insight into the important role housing plays in the economy is the basis on which this conference programme is built.

The detailed content will help all organisations, not just lenders, operating within the world of housing. The content discussed will be crucial to understanding current and future housing market conditions.

Chaired by Sue Anderson, head of external affairs, Council of Mortgage Lenders

Expert speakers will include:

  • Michael Coogan, Director General, Council of Mortgage Lenders
  • Rt. Hon John Healey MP, Minister for Housing and Planning
  • Peter Williams, housing consultant and Chairman, IMLA
  • Steven Hall, director, KPMG
  • Bob Pannell, head of research, Council of Mortgage Lenders
  • John Stewart, director of economic affairs, Home Builders Federation
  • Rob Thomas, senior policy adviser, Council of Mortgage Lenders

Download full programme

Delegates currently booked on include:

  • Technical director, Allied Surveyors
  • Head of sales, Halifax Intermediaries
  • Head of product delivery, HBOS plc
  • Team leader, housing regeneration and third sector team, HM Treasury
  • Business project manager, Legal and General Assurance Society

Cost:

£275 for members (VAT exempt)
£325 for non-members (VAT exempt)

Our event fees remain highly competitive with prices for members and associates not having increased since January 2007

Location:

The Westbury Hotel, Bond Street, Mayfair, London, W1S 2YF

This event is open to press

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

Effects Of The End Of The Stamp Duty Holiday – Decision Homebuyers Report

London, England (Jan 11, 2010)Decision Homebuyers, one of the UK’s most trusted and flexible home buying specialists, comment on the impending end of the stamp duty holiday and the effects it will have on the current housing market conditions.

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

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

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

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

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

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

Six charged in £50 million ‘mortgage fraud’

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

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

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

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

Notes

At the relevant time:

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

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

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

Main switchboard tel: 020 7239 7272

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

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

Serious Fraud Office – Swoop on 19 properties in International commercial loans fraud

Six suspects have been arrested during a search operation on 19 properties throughout England. Three are being held in custody to appear before magistrates. The action relates to an investigation into suspected advance fee fraud and commercial rent fraud. The searches, involving more than a hundred investigators and police officers, took place to prevent further loss to victims.

Outline

Operating as Gresham Ltd and Gresham Finance (London) Ltd (see note 1) the company offered commercial loans of up to £250 million. It promoted its services by advertising in newspapers, magazines and on the internet. Applicants for loans were charged between five and fifty thousand pounds for a due diligence check.  Most of the applications came from overseas for commercial projects such as developing resorts and building hotels (in Austria, Turkey and other countries).

Once an applicant had paid the due diligence fee there was a next-stage payment (a security deposit) set at between 1% and 5% of the loan amount. Various other company names were also used to offer a similar service.

The same suspects were also involved in a retail property renting business operating as Gresham Ltd, Park Regent Ltd and Castlereagh London Ltd (see note 2). The suspects used a complex number of company names in their business dealings, including the following: 45 Oxford St Ltd, Renaissance Trust, Cutting and Company (Investments) Limited, Paul Street Media Limited and the Alliance Trust (see note 3).

Searches and arrests

Search warrants were executed at eighteen addresses in London, Surrey, Cheshire and Derbyshire in a mixture of commercial and residential properties. The searches involved 70 personnel from the SFO and 40 officers provided by the City of London Police, the Derbyshire Constabulary and the Cheshire Police.

Five men and one woman have been arrested and three will appear in court later today at City of London Magistrates Court.

The SFO are continuing enquiries into this case.

SFO Appeal

The SFO would like to hear from anyone who believes that they might have information useful to the investigation. The number to call is 0207 239 7079

Notes for editors:

1.     Gresham Finance (London) Ltd is not to be confused with Gresham Finance Ltd, which is an unconnected company and not under investigation.

2.     Castlereagh London Ltd is not to be confused with Castlereagh Ltd of Dublin, which is an unconnected company and not under investigation.

3.      Alliance Trust is not to be confused with the Alliance Trust PLC, the FTSE 100 investment trust, which is an unconnected company and not under investigation.

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

Press Office tel: 020 7239 7045/7000/7004/7132 or mobile: 0796 655 8903 or 0777 616 0985

Main switchboard tel: 020 7239 7272

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

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

Help is still at hand for Stamford Homes first time buyers

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

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

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

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

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

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

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

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

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

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

- ENDS -

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

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

For further information please contact:

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

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

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

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

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

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

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

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

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

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

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

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

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

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

- ENDS -

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

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

For further information please contact:

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

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

Home insurance – Beware problems arising from cancelling or failing to renew

Beware Of Dumbing Down Your Home Insurance Cover

Unlike many other home insurance policies, Sainsbury’s Home Insurance offers unlimited buildings cover, a no claims discount of up to 30% and does not apply charges for paying by direct debit.

LONDON, ENGLAND, December 02, 2009
Customers taking out Sainsbury’s Home Insurance qualify for Double Nectar points on their Sainsbury’s shopping for two years

Over the past year in order to save money, one in four people have cancelled or not renewed their home insurance. Sainsbury’s Home Insurance is warning people not to go without home insurance as it could have disastrous consequences leaving them in further financial dire straits. To help pay for their home insurance, Sainsbury’s Finance is urging people to spread the cost of cover over a year, something it does not charge customers for doing. However, its research reveals that 68% of policies do.

Ben Tyte, Sainsbury’s Home Insurance Manager, said:
“In the current economic environment many people are looking to dumb down on their insurance or do away with it completely in order to save money. However, this is a false economy because if disaster strikes they could be left in ruin. Rather than risk inadequate cover, they should shop around for better deals – it is possible to find quality cover at a competitive price – and find a policy that does not penalise them for paying on a monthly basis.”

However, when reviewing policies, Sainsbury’s home insurance warns that it is very important to look closely at the quality of cover being offered. For example, its research reveals that only 8% of home insurance policies offer unlimited buildings cover and only 12% offer a no claims discount of up to 30% or more. Furthermore, less than one in ten (8%) policies provide no claims discount protection. These are all features offered by Sainsbury’s Home Insurance.

Sainsbury’s shoppers are rewarded with double Nectar points on their shopping in store, online and in petrol filling stations for two years when taking out Sainsbury’s Home Insurance. For example, customers who spend GBP50 a week with Sainsbury’s and have Sainsbury’s Home Insurance as well as a Nectar card would receive GBP52 worth of Nectar points a year.

About Sainsbury’s Home Insurance:
As well as being competitively priced, the bank also offers an extensive range of cover and benefits. This includes:

Unlimited buildings cover
Unlike some home insurers, Sainsbury’s Bank does not apply charges for customers paying their premiums by direct debit
Maximum no-claims discount of up to 30%
No-claims discount protection
Cover for accidental damage – even by pets
Sainsbury’s provide a wide range of financial services including credit cards, loans, personal loans, savings account, pet insurance, life insurance, home insurance and car insurance, visit www.sainsburysbank.co.uk now to find out more

For further information, please contact:
Phil Anderson / Ian Morris
Citigate Dewe Rogerson
020 7282 1031/1037

Notes:
(1) Defaqto research commissioned by Sainsbury’s Finance, September 2009
(2) ABI, June 2009
(3) Dependent on the number of years you have remained claimed free
(4) Terms and conditions apply – additional premium required
Sainsbury’s Home Insurance is underwritten by St Andrews Insurance ltd.

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

Nationwide: House prices edge up further in November

• House prices rose by 0.5% in November, the same rate as in October
• Year-on-year house price inflation increased from 2.0% to 2.7%
• Labour market has so far held up better than expected

Martin Gahbauer

Martin Gahbauer

Commenting on the figures Martin Gahbauer, Nationwide’s Chief Economist, said:
“The monthly rate of house price inflation was unchanged in November at a seasonally adjusted 0.5%, leaving the average price of a typical property 2.7% higher than a year earlier.

At £162,764, the average house price is at a similar level to where it was in early 2006. The 3 month on 3 month rate of change – generally a smoother indicator of the near term trend – dropped to 2.8% from 3.5% in October and 3.8% in September.
This suggests that house prices are now rising at a more moderate pace than in the spring and summer months, when they experienced a very strong bounce from the early 2009 lows.

Labour market has held up better than expected but uncertainties remain.

“The outlook for the housing market remains crucially dependent on labour market conditions, and here recent developments have been somewhat more encouraging than might have been expected. With the UK experiencing its longest and deepest recession since WWII, most economists expected unemployment to increase very sharply in 2009, perhaps breaching the psychologically important three million mark by
the end of the year.
While unemployment has indeed increased noticeably, the rise has not been as rapid and pronounced as previously feared.
Based on the latest labour market figures from September, it now looks unlikely that the jobless total will reach three million before the year is up.

“Part of the explanation for why unemployment has not risen to the levels implied by the recession’s depth is that in many cases employers have opted to reduce working hours and pay rather than make employees redundant. This is reflected in rising part-time employment at the expense of full-time employment , and record low growth in average earnings.

The strategy of cutting hours and pay rather than headcount probably reflects a fear among many employers that they could find themselves short of labour when the economy recovers, thus leaving them less competitive in the longer term. Whether this strategy is sustainable will depend on how quickly the economy recovers.
If output is too slow to recover, then firms may find it necessary to reduce their payrolls further in order to improve productivity and profitability.
Another reason to remain cautious about the future outlook for employment is that the public sector has not yet experienced any significant job losses, but presumably will begin to do so when fiscal policy is tightened from next year onwards.

“Despite continued uncertainties about the future, the better than expected performance of the labour market has probably contributed to the surprise rebound in house prices this year. Even though workers who have been forced from full-time employment into part-time work will have experienced a reduction in income, the impact has been less severe than it would have been if they had lost their jobs completely.

Together with the fact that mortgage rates have fallen sharply as a result of base rate cuts, this has meant that far fewer borrowers have
fallen into arrears than would normally be the case in such a deep recession. In fact, the percentage of borrowers in arrears across the mortgage
industry has even edged down slightly in the most recent quarterly figures (chart 3). As such, the downward pressure on house prices from distressed sales has so far been significantly lower than expected.”

Martin Gahbauer,
Chief Economist
Tel: 01793 655434
martin.gahbauer@nationwide.co.uk

CFA Roy Beale
External Communications Officer
Tel: 01793 655689
roy.beale@nationwide.co.uk

More information

Notes:
Indices and average prices are produced using Nationwide’s updated mix adjusted House Price Methodology which was introduced with effect from the first quarter of 1995. The data are drawn from Nationwide’s house purchase mortgage lending at the post survey approvals stage. Price indices are seasonally adjusted using the US Bureau of the Census X12 method. Currently the calculations are based on a monthly data series starting from January 1991. Figures are recalculated each month which may result in revisions to historical data.

The Nationwide Monthly House Price Index is prepared from information which we believe is collated with care, but no representation is made as to its accuracy or completeness.
We reserve the right to vary our methodology and to edit or discontinue the whole or any part of the Index at any time, for regulatory or other reasons.
Persons seeking to place reliance on the Index for their own or third party commercial purposes do so entirely at their own risk. All changes are nominal and do not allow for inflation.

More information on the house price index methodology along with time series data and archives of housing research can be found at www.nationwide.co.uk/hpi

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

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

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

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

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

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

About Beemovedremovals

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

Press Release Contact Details:

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

###

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

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

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

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

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

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

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

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

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

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

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

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

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

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

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

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

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

-ENDS-

Editor’s Notes

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

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

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

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

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

“What House?” Award won by Stewart Milne Homes

Stewart Milne Homes has achieved a national What House? Best Interior Layout award for its collection of townhouses at Greenwood Manor in Newton Mearns.

stewart-milne

The housebuilder picked up the award on Friday 20 November, surpassing a host of UK-wide competitors.

John Slater, Stewart Milne Homes, group managing director, said:

“Winning this award is a great coup for Stewart Milne Homes. The collection of townhouses at Greenwood Manor is a real showpiece for the company, illustrating our excellence in building the highest quality, stylish product that is designed to meet the needs of the modern buyer.

“The award for Best Interior Layout recognises the level of innovation and flair demonstrated in these designs and rewards the expert combination of imagination and practicality offered by each home, particularly our approach to space and flexibility.”

The What House? Awards are considered to be the Oscars of the housebuilding industry and showcase some of the UK’s most exciting and dynamic new developers as well as highlighting the innovations of the industry’s major players. This year’s awards mark an even greater achievement for house builders who have successfully sustained quality of product despite the economic downturn.

John Slater continues: “Despite these challenging times, we have remained committed to delivering the same quality products and service that our reputation has been built on. This national award for Greenwood Manor is a superb recognition of this, especially as we continue the company’s drive into England.“

The award-winning townhouses at Greenwood Manor bring a whole new class of property to the newbuild market. Interior layouts combine traditional design features with key elements of modern living to offer practicality with style. Spread over three floors, each layout makes the very most of the space, whilst maximising light and offering flexibility. Designed to make an impression, key property features include grand entrance halls with oak staircase, exceptionally large living rooms with twin sets of windows providing elevated views of the garden, and spacious open-plan breakfasting kitchens. Additional spaces include an entrance vestibule, separate dining room, utility room, allocated storage and integral garage.

The townhouses also incorporate exclusive attributes such as a top floor master suite with private balcony, walk in closet, and luxurious ensuite. Combined with a ‘platinum’ specification and highest quality finish, these homes are effortlessly set apart in the newbuild marketplace.

Greenwood Manor four bedroom townhouses are priced from £425,000. For further details, contact the showhomes and marketing suite on 0141 639 9990, open Thursday to Monday from 10.30am until 5.30pm. Alternatively, visit http://www.stewartmilnehomes.com

Press Release Contact Details:

Debbie Standen CM Porter Novelli 45 Hanover Street Edinburgh EH2 2PJ 01314703400

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

‘Rent-a-room’ demand increases – National Landlords Association (NLA)

The National Landlords Association (NLA), the leading representative body for private-residential landlords in the UK, is calling for the ‘Rent-a-Room’ scheme threshold to be increased for the first time under the current Government.

Rental income from lodgers is exempt from income tax up to a threshold of £4,250. This threshold has not changed since 1997/98, even though rents in most parts of the country have more than doubled.* ‘Rent-a-Room’ was originally set up to encourage people to rent out spare rooms, but given the significant rent increases over the past 12 years the value of the benefit has dwindled.

Sixty per cent of rooms in the UK are rented for more than £4,250 per year.  In London this figure rises to 91 per cent. Even more startlingly, 78 per cent of UK homeowners could cover the average mortgage arrears by renting out a spare room.*

The NLA is supporting the ‘Raise the Roof’ Campaign which is lobbying for a tax-free threshold increase to £9,000 per year. Not only could the increase help to prevent repossessions but it could add much needed affordable housing stock.

David Salusbury, Chairman, NLA, said:

“There is no way of telling just how many potential ‘live-in’ landlords are not letting out their spare rooms because of the hassle-factor of having to complete a self-assessment tax form. Today we are sending a clear message to the Chancellor: a fair deal for those looking to rent a room by increasing the tax-free threshold will help homeowners and the economy. It is a win-win situation that helps both parties and it is about time the exemption reflected the increase in market rents.”

* Data on residential landlords by www.spareroom.co.uk (Matt Hutchinson, 0845 644 4029)

All media enquiries to:
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.

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

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

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

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
Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

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.

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

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

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

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

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz

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

Share and Enjoy:
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • Live
  • NewsVine
  • Propeller
  • Reddit
  • Slashdot
  • Yahoo! Buzz
  • blogmarks
  • FriendFeed
  • LinkedIn
  • MSN Reporter
  • MyShare
  • MySpace
  • Netvibes
  • RSS
  • StumbleUpon
  • Technorati
  • Twitter
  • Add to favorites
  • Blogosphere
  • Google Buzz