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 While house sales could well rise in 2012, it looks as if property prices will be struggling to follow suit. The RICS, Royal Institution of Chartered Surveyors, has predicted that the number of UK homes sold will rise to 880,000 this year, roughly the same amount of activity that the market saw in 2010. Even if the property market was to improve slightly, levels would still be less than previous years, as there were 1.67m sales in 2006.
Although RICS believes that prices will fall slightly, there will be no large scale drops due to the low supply levels. It said that the weak current economic outlook was expected to remain the same for at least the next 6 months, as is the prospect of unemployment increasing, which means that the demand to buy properties is unlikely to see any significant increases and looks like remaining relatively stagnant.
It is widely hoped that the Governments indemnity scheme will assist many prospective first time buyers in getting a foot onto the property ladder, even though the initiative is expected to only have a limited impact with is only benefitting those who are buying a new build. Simon Rubinsohn is the chief economist of the RICS and he says its likely that the general economic climate will be the largest influence on the property market in 2012.
He also said that prices could start to edge lower if unemployment continues to rise, but any drops are likely to be insignificant due to the lack of supply currently available. He added that they did expect to see a slight increase in the number of transactions taking place, even though mortgage lending will more than likely remain subdued, limiting the scope for improvement.
Other areas of the housing market, however, are expected to fare a lot better, and demand in the rental sector is expected to stay strong. The RICS has predicted that the rental market will stay firm, meaning that rents are likely to see further increases, albeit they will rise at a slower pace that during 2011. Despite the prospects for increasing unemployment, only a marginal rise in repossessions is expected for 2012.
 Competition has once again intensified in the buy to let mortgage market, as the Yorkshire Building Society has announced that they are relaxing their lending restrictions as well as expanding their deals across England and Wales. The Yorkshire entered the buy to let market last August and offered products through its lending subsidiary Accord Mortgages, but only made their products available in the South East and London.
A spokesman for the Yorkshire Building Society has said that those two area had been pilot areas and it was now looking to start lending right across England and Wales immediately, and that it has entered the buy to let market in steps. Other changes to their buy to let criteria include dropping the level of the minimum property value from £150,000 down to £100,000 and reducing the minimum income by £15,000 to £20,000.
It has also cut 5 years off the minimum age of applicants, which is now 30 and has lifted the current 40 miles distance between the property and the borrower. Many lenders have been expanding deals in the buy to let sector, due to the rental market seeing a boom at the same time as house prices have been generally remaining stagnant.
With more and more potential homebuyers being trapped in rental properties due to the strict lending criteria for mortgages, rental prices have gone through the roof. Recent statistics courtesy of LSL Property Services show that rental prices have increased by nearly £50 a month since 2008 due to the demand, and this is very appealing to those seeking buy to let mortgages.
Rightmove, the nationwide property website, have said that there are now almost three times as many buy to let mortgage products than there was only 2 years ago, and the market is further expanding due to these trapped renters. Lenders in general, however, are expected to tighten their ordinary criteria further in 2012 due to the eurozone crisis and the weak economy.
 A new scheme to ‘Get Britain Building’ announced by Prime Minister David Cameron last month has a lot of good proposals, but it remains to be seen how far it will go in accomplishing the stated goal of getting the construction industry back on target and a multitude of first-time home buyers into a new house.
Mr. Cameron said that the average first-time home buyer in theUKwho can’t get assistance from parents or other family members is about 37 years old, and “ . . .that’s just not good enough.” He wants to give all the hopeful buyers who have been stymied by the credit crunch an opportunity to make that crucial move up the housing ladder, and he listed several proposals intended to facilitate the process.
The most promising of the proposals seems to be a mortgage indemnity scheme wherein lenders will be backed by government funds so they can make loans up to 95% of the value of a new home, so a buyer has only to come up with 5% in order to make the purchase. Currently, lenders are requiring an average of around 25% as a down payment, so this move should enable an estimated 100,000 buyers to get the funds they need, according to proponents of the initiative.
The Prime Minister also said that the UK is in dire need of more new homes, and proposed several avenues for their creation. The proposal includes allowing builders to borrow from a £400m ‘Get Britain Building Fund’ to get moving on approved sites; part of the criteria for release of these funds is the developer’s commitment to building ‘affordable’ homes.
Tenants in social housing are to be given the opportunity to purchase their residence for as little as half the market price, with the proceeds going towards the construction of more low-cost homes. That, says Cameron, would hopefully mean that a new home can be built for every one sold in this manner.
Another part of the strategy would allow developers to use government owned land, of which Cameron says there is a great deal, and to proceed on a ‘build now, pay later’ plan wherein they could pay back the cost of the land as new homes are sold. The plan also suggests that the same will be true of building sites already in progress that are ‘stuck’ for lack of financing. The government would put up enough of the initial funds to get construction going again and new homes ready for occupancy.
Currently, new home production is at the lowest level since WW11, curtailed by rising costs and the reluctance of lenders to extend loans. In theory, the new scheme will not only provide affordable housing for a significant percentage of buyers, but also thousands of jobs for workers in construction and many related industries such as plumbers, electricians etc.
The scheme also makes an attempt to address the problems of inconsistency in social housing; reportedly there are at least 6,000 households living in tax payer-subsidised social housing that have an income of £100,000 or more per year. Under the new approach, those residents would have to pay the open market rate if they want to continue living where they are.
The scheme, led by the Council of Mortgage Lenders and the Home Builders Federation, has been criticised by some housing experts who say it is too little, too late. Jack Dromey, shadow housing spokesman, suggested that £400 million is a drop in the ocean compared to the £4 billion that was cut from the housing budget last year.
- The number of people aged over 65 years will increase by 65% in the next 25 years*.
- The number over 85’s will double in the next 20 years and triple in the next 30 years*.
- There are now 14 million people in the UK aged over 60*.
- Over one third of total UK population is over 50 years of age*.
Where will they all live?
Those older people who wish to downsize are effectively being ignored by both planners and developers, and due to this a major crisis is looming as soon there won’t be enough retirement properties for the over 65′s to move into. This is according to Pegasus Retirement Properties.
Care for the elderly is once again hitting the headlines, and the debate and policies that are being proposed on how the country is going to house the ageing population must, in the view of Pegasus, take into account the housing stock currently available for older residents and realise that the need for more retirement properties is now in a state of urgency.
The latest Government figures have state that their latest projection is that in 20 years time there will be over 5.5m more elderly people than there are now, and that number will have almost doubled by 2050 to around 19m. It also said that the age group with the fastest growth was those over 100, or centenarians.
Peter Askew, Pegasus Chief Executive, explains: “The number of over 60’s who will be active and independent well into their 80’s will continue to increase if they can live the right lifestyle – and that is where specialist retirement and assisted living are so important. Because Pegasus owners are able to lead an active, independent lifestyle and their homes are readily adapted for disability, less than 4% of them end their days in a care home. The bill for assisted living is much less than the bill for care – whether it is paid by the State or a family. In addition, the lifestyle requirements of the older generations are changing all the time, yet we have insufficient provision in place.”
He warns: “The number of available specialist retirement developments has shrunk whilst the number of retired people living longer grows. In 2009, only 589 new retirement units were registered and by the end of September 2011 the figure had risen to 1602 new units (apartments and houses). However, this is a drop in the ocean because, as each property is bought and lived in, there are not enough new retirement properties being built to re-stock supplies.
“We do not have enough property in Britain to meet the needs of people already over 60 and the situation for those who now aged 40-50 is bleak. At the current rate of construction, it is probable that we will run out of specialist retirement property.”
Peter also makes the point: “Estate agents are screaming that they do not have enough family property for their registered buyers so it makes perfect sense to give older people living in a family house as many choices as possible to free up these properties. Pegasus has over a quarter of a century of experience of retirement property and we have found that 99% of our buyers who have downsized from a family home where they only used the sitting room, kitchen and a bedroom are very happy once they have moved into one of our apartments because their overheads and worries are almost entirely removed. And, of course, a young family can buy their family house that they have sold on.”
Pegasus has developments in London, The South, South East, South West, Midlands and Wales. Please see www.pegasus-homes.co.uk. Prices start from £129,950.
Integrating renewable energy into your home is a great way of benefitting from the latest buzz to hit the globe. OK, so it’s been around for a while but the current ability of it is still unknown by many. As we strive towards a goal of 100% renewable energy by the middle of this century, it’s time to understand how this potential can help your home.
While house and property prices continue to rise, people are often looking at new ways to add value to their home without moving. Knowing the benefits of renewable energy can help to ensure that you get the most out of it.
Lowering bills
Electricity bills have been soaring too high for many years, and that doesn’t look likely to change from your standard energy companies anytime soon. But, by installing the equipment – the most popular at this time is solar – you can cut down your outgoings.
Also, there are many renewable energy companies out there that offer carbon free electricity to homes if they want to switch provider. While installing your own would be seen as an investment – one which can bring you profit over time – the best way to cut your bills immediately is through the use of a better supplier.
Clean up your act
Nobody likes to be messy, and it is becoming easier than ever to clean up the home while also helping it. Renewable energy is better for the environment because it is a cleaner power source and will in time become fully integrated into the market.
Similarly, the use of recycling and buying recyclable products is a great way of ridding yourself of clutter and understanding how the little things you do help the environment in a big way.
Let’s put it in numbers
The number of people being open to or involved with renewable energy continues to rise thanks to the media coverage of this form of power. Companies like Good Energy are generating ideas and moving forward with the purpose of making all power 100% renewable.
Surveys are happening all the time, and it is now believed that less than 10% of the population has no renewable energy interest. Alongside this, more than three-quarters are in favour of renewable energy while as many as 15% are actively considering installing systems for the home.
What happens now?
What these surveys also show is that more than half of the population want to know more about renewable. This is probably because we continue to hear about renewable energy but don’t know how this can help us personally. As research continues into integrating this fully into the market, you could also take this moment to find out more about the environmental, financial and personal benefits you get from having this energy in your home.
 Welfare cuts are meaning that it is becoming increasingly difficult for people to buy homes and families with low incomes are finding that they are having to reduce their standard of living in order to meet rent payments. A recent study has estimated that nearly 1,000,000 homes are going to be put out of reach of people on welfare benefits in the near future.
The Chartered Institute of Housing have recently released research that shows that there are going to be more people claiming the properties than there are affordable properties available. This has led many people to speculate those who cannot afford homes are going to move to low rent areas which will essentially become benefit ghettos.
The government have recently limited the amount of housing benefits available to people, an example of the cap is that only £250 per week will be available for people who want to rent a two bedroomed home. This means that many cities will be unaffordable to people on housing allowance and they might have to move to private landlords.
The problem is also being faced by those in London as they will be unable to afford homes in even the cheapest areas. In Croydon it is estimated that there are only 10,000 affordable properties and there is a surplus of 7000 people seeking these homes.
While the south-east of England has the most expensive homes this is not the only part of the country that is being affected and in Birmingham the number of houses affordable to people on benefits has shrunk significantly, the same is true of houses in Merseyside and Liverpool.
Despite the devolved power of the Scottish government, welfare benefits are set in Westminster which means that the effect of the cuts will be felt across the UK, including Scotland. Glasgow is expected to be a city that is particularly badly affected by the budget cuts.
Grainia Long is the current chief executive of the Chartered Institute of Housing and she has said, “The problem with these budget cuts is that many people are going to stop buying essentials and luxuries are simply going to be out of reach. Some people might have to cut the amount they are eating simply to make their rent and this is something that many people are very afraid of and homelessness is becoming an increasingly possibility and scary reality for some.”
Long continued, “The problem is that people who cannot afford homes are going to move to cheaper areas and this is going to cause a large amount of social unrest. In the south-east there are very few areas of low rent and I expect this is going to be one of the areas with the most social unrest outside of London.”
The Institute has also warned that if people have to move house to cheaper areas there are going to be problems with jobs as many people will be seeking them and there will be relatively few. This will mean that incomes will decline even further and conditions will become much worse.
Unfortunately, the benefits changes made by the government are mostly affecting cities where the jobs are most diverse. The benefit cuts are going to seriously hinder the recovery of the economy because people will be unable to find work and unemployment figures will significantly rise.
 Around half of UK consumers still feel that now is a good time to invest in property and confidence in the housing market is remaining stable, despite the economic outlook being gloomy to say the least, and a prediction having been made that we are heading for a double dip recession.
The 14th quarterly property tracker survey from the BSA, Building Societies Association, has shown that 44% of consumers would now buy property, compared with 41% in their March survey. Only 25% said that they didn’t think now was a good time to be looking at buying, and consumer sentiment is seen as a key indicator in the property markets future activity, and is providing an early snapshot of 2012′s potential activity.
The results have also shown that regional variation as well as age reflect the mood of the country. Those over 55 are the ones with the most positive view of the current housing market, and 54% said that now is a good time to buy. Those is the 18-24 age bracket are a lot less sure however, and only 32% agreed that it was a good time to buy.
The public in the North East and South East regions and Scotland were the most positive, with the figures being 47%, 48% and 49% respectively. It was surprising to see that the consumers in London were among the least positive, and only 42% believe that it’s a good time to buy. The BSA said that this may well be a reflection of the higher house pries that exist in the capital.
!2% of the overall respondents intend to buy property next year, while 63% said they have desire or need to move during 2012, and 17% stated that they simply were in no position to move. Another 8% were put off moving for other reasons such as the size of deposit that was needed and the current job outlook. Those over 55 have the least intention of moving next year at only 8%, whilst 21% of 24-34 year olds indicates that they had the highest intention.
Looking across the regions, Londoners have the largest intention of buying next year at 21%, followed by the West Midlands at 16% and Yorkshire and Humber and the South East both on 15%. By a long way, those in Wales have the least intention of buying with only 5% saying they would be doing so in 2012, followed closely by those in the North East with 6% and the North West with 7%.
The survey also showed the challenges that need to be overcome for the intention of buying to be realised. The biggest hurdle was raising the deposit with 64% saying this was stopping them from buying, 57% said that securing a large enough mortgage was their main problem and 54% had major fears over job security.
Only 21% see the potential of further falls in house prices as their barrier, and more men than women see this as the problem; 24% compared with 18%. The 24-34 age bracket are the most concerned about their ability to raise their deposit at 70%, with is 6% over the national total, whilst more women, 57%, are concerned about job security compared to men at 51%.
The age bracket most concerned over job security is the over 55′s, as 63% see it as a major barrier, which is way over the national total of 54%. Those aged 18-34 are the least worried about this at 46%.
 Innovation is a creation of mind, attention, and thinking ‘outside of the box’. The stimuli around us can ignite thoughts that can lead to innovative ideas. If you look around your office, is the environment that provides the stimulus required for innovation? Or on the other hand, does your office refurbishment design say “we have been doing things this way for years; and nothing new is required”?
The bottom line is that numerous companies have not given enough effort into providing a well-designed office structure favourable to employee satisfaction or to productivity and innovation. How can you expect your employees to have fresh and innovative ideas when the office looks like a reject from the 1980s or 1990s?
Think about this: the average employee spends about eight hours at the office, five days a week. If you add preparation and travel time, this number can increase to 11 hours or more per day. Add any extra hours they may work and the essential tasks that surround daily life and suddenly, your employees are spending more time involved in the drudgery of life than anything else.
Now, consider how it must feel for an employee to spend a bulky portion of their lives in an environment that is not pleasant or enjoyable, much less inspiring and rousing. Life for them must sometimes feel like one very large obligatory chore – with the contentment and pleasure that should be derived from work becoming non-existent. Over time, working in such a drab and uninspiring environment takes its toll: output and loyalty decline and creativity and innovation go straight out the window.
Every business, whether large or small, faces the problem of establishing an office environment that welcomes innovation and originality. Those who are most successful in creating such an environment are the ones who understand that even the best of employee benefits are not enough if the environment is lacking and depressing.
An office that takes on and encourages innovation is one that is designed with the corporate culture in mind. It is also one that promotes an open environment. It uses space, furnishing, and position in a manner that allows communication and ideas to flow. It recognises the need not only for the formal, but also for the informal by placing conversation pits or pleasantly designed coffee areas where people can sit and brainstorm. Cubicles are balanced to provide for practicality as well as privacy. The individual elements are seen an important part of the whole. Open office plans put senior management on the floor with employees, creating a team spirit and encouraging across-line communication. All of these types of elements come together to serve as open arms to innovation.
When taking on the task of redesign in order to generate a space conducive to innovation, businesses should not be afraid to try-out different ideas. Very rarely will you get it right the first time round. Many changes can be made for little investment and often, the little changes lead to bigger changes – all coming together to create an innovative environment and, ultimately, increase the ROI.
 July and August this year showed a great improvement in the property market as mortgage approval figures were at their highest point for over two years. Many analysts in the industry have said this is due to the Post Office and Nationwide offering mortgages with a good fixed-rate.
The British Bankers Association has said that these more favourable mortgage rates encouraged a growth in the market, especially for people who are buying to let. Currently, a debate is taking place between analysts in the market and they are struggling to reach a consensus as to whether these improved figures are a sign of economic recovery or if they are merely a blip in an otherwise dreary picture.
In September though, the number of approved mortgages fell and less agreements were reached throughout the month. This was the first dip in mortgage agreements since April and shows that recovery might not yet be on its way.
The figures this year are still well below the mortgage approval rates that were seen before the financial crisis began. Since September the amount of mortgage lending has continued to decline and this shows that there is a continuing weakness in the market. Many analysts are still concerned that the number of approvals are at record lows and this is not a good sign for an improvement in the market.
Samuel Tombs is a representative from Capital Economics who has said, “The figures that we saw in September show that there is a continuing problem with the supply of credit in the market and this is putting a major hold on the recovery of the entire economy.”
The number of mortgages being issued is also declining as the population are not seeking to take out more loans, they are concerned about their jobs and if they lose them than they would be unable to make their mortgage payments.
Experts generally agree that over the next few months the number of people taking out mortgages is going to fall and problems in the economy at large are only going to make this worse. The crisis in the Eurozone also means that the number of mortgages likely to be approved is going to fall for the foreseeable future.
There are also concerns that if the Eurozone summit fails to resolve the crisis then mortgage rates are going to increase and the housing sector is going to fail to grow for a great many more months.
Research has also suggested that people are also less interested in owning their own homes. In the past it was very common for people to enter the property market and start building up their ownership of a home. Now however, because of the high cost of mortgages and the difficulty in getting one, people are becoming less interested in owning property. Until this sentiment changes and mortgages are easier to get it is unlikely the property market will see much recovery.
 A new scheme to ‘Get Britain Building’ announced by Prime Minister David Cameron last month has a lot of good proposals, but it remains to be seen how far it will go in accomplishing the stated goal of getting the construction industry back on target, and a multitude of first-time home buyers into a new house.
Mr. Cameron said that the average first-time home buyer in the UK who can’t get assistance from parents or other family members is about 37 years old, and “ . . .that’s just not good enough.” He wants to give all the hopeful buyers who have been stymied by the credit crunch an opportunity to make that crucial move up the housing ladder, and he listed several proposals intended to facilitate the process.
The most promising of the proposals seems to be a mortgage indemnity scheme wherein lenders will be backed by government funds so they can make loans up to 95% of the value of a new home, so a buyer has only to come up with 5% in order to make the purchase. Currently lenders are requiring an average of around 25% as a down payment, so this move should enable an estimated 100,000 buyers to get the funds they need, according to proponents of the initiative.
The Prime Minister also said that the UK is in dire need of more new homes, and proposed several avenues for their creation. The proposal includes allowing builders to borrow from a £400m ‘Get Britain Building Fund’ to get moving on approved sites; part of the criteria for release of these funds is the developer’s commitment to building ‘affordable’ homes.
Tenants in social housing are to be given the opportunity to purchase their residence for as little as half the market price, with the proceeds going towards the construction of more low-cost homes. That, says Cameron, would hopefully mean that a new home can be built for every one sold in this manner.
Another part of the strategy would allow developers to use government owned land, of which Cameron says there is a great deal, and to proceed on a ‘build now, pay later’ plan wherein they could pay back the cost of the land as new homes are sold. The plan also suggests that the same will be true of building sites already in progress that are ‘stuck’ for lack of financing. The government would put up enough of the initial funds to get construction going again and new homes ready for occupancy.
Currently new home production is at the lowest level since WW11, curtailed by rising costs and the reluctance of lenders to extend loans. In theory, the new scheme will not only provide affordable housing for a significant percentage of buyers, but also thousands of jobs for workers in construction and many related industries such as plumbers, electricians etc.
The scheme also makes an attempt to address the problems of inconsistency in social housing; reportedly there are at least 6,000 households living in tax payer-subsidized social housing that have an income of £100,000 or more per year. Under the new approach, those residents would have to pay the open market rate if they want to continue living where they are.
The scheme, led by the Council of Mortgage Lenders and the Home Builders Federation, has been criticized by some housing experts who say it is too little, too late. Jack Dromey, shadow housing spokesman, suggested that £400 million is a drop in the ocean compared to the £4 billion that was cut from the housing budget last year.
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One of the most important features of your property is the bathroom. A gorgeous bathroom makes a home. For a wide range of accessories for the bathroom, such as the bathroom shower, the bath, the bathroom suite and bathroom furniture, check out Bathsource online.
To improve your property, either for your own personal comfort or for when you want to sell it, check out the website for Blindfolded Blinds a leading blinds and awnings company that have been installing blinds in properties for over 20 years.
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While house sales could well rise in 2012, it looks as if property prices will be struggling to follow suit. The RICS, Royal Institution of Chartered Surveyors, has predicted that the number of UK homes sold will rise to 880,000 this year, roughly the same amount of activity that the market saw in 2010. Even if the property market was to improve slightly, levels would still be less than previous years, as there were 1.67m sales in 2006.
