Marlborough Newsletter - August

Marlborough News August 2014 Signs of Market Cooling?

Mortgage lending in May was £16.5bn, the same as April and 12% higher than a year ago.

However, it is lower than anticipated as fears of an interest rate rise give buyers cold feet (Council of Mortgage Lenders). “The data for May add to the evidence that housing market activity has - at least temporarily - lost momentum recently” said Howard Archer, Economist, IHS Global Insight. Earlier this month, the Royal Institution of Chartered Surveyors (RICS) reduced its expectations for house price growth and noted an end to the "strong upward momentum" in the housing market.

Also mortgage approvals dropped by up to 10% in May, to 61,000, which is below the 70,000 recent six month average (Bank of England). Banks expect the demand for mortgages to grow in the third quarter of this year, but the approval rate to fall significantly because of the tighter rules on mortgages introduced in April. (Bank of England credit conditions survey).

Finally estate agents have 27% fewer houses for sale compared with a year ago. This has increased competition between buyers, and contributed to 19% of properties being sold for more than the asking price (NAEA, May).

Caveat Emptor Buildings insurance costs have spiked upwards for properties at flood risk that are not covered by the proposed Flood Re scheme, which only covers some buildings. (British Insurance Brokers' Association).

CAP Reform Update The Smiths Gore CAP Calculator (www. smithsgore.co.uk/cap) will calculate each farm’s respective greening requirements.

There is across the Southern region an emerging market for land to be let to satisfy the EFA area requirements. Landowners with lower quality land, but still suitable for EFA options, and surplus to their own claim

requirements could offer it to the market under a tenancy to claimants who do not wish to lose potentially 5% of their most productive land.

For more information and advice on this item contact Tom Brunt on 01672 529053 or thomas.brunt@smithsgore.co.uk

Understanding Selling and Buying

This month, we’re looking at 'Sealed bids', 'informal tender', 'best and final offers', 'closing date', call it what you will. Agents have different names for the process which is 'informal' in the sense that the resulting agreement is not legally binding, as distinct from a Tender - common in the sale of building land - where a bid has to be accompanied by a deposit cheque and a contract is formed by the acceptance of the best offer.

a number of people and a call for sealed bids neatly wraps up getting prospective buyers' best offers and evidence of their financial positions all at the same time.

Sealed bids is a non-binding alternative to negotiating a sale. A typical scenario is when there is competitive interest in a house from

For the seller of a desirable house, it can bring some spectacular results. But many buyers understandably find it a brutal

Like any means of bringing a Private Treaty sale to a close under English Law it does, however, still have risks for both parties until contracts are exchanged - the risk that the buyer may pull out, or that a 'gazumping' bid may be submitted.

smithsgore.co.uk

process - under-bidders left with remorse that they didn't offer that little bit more, and successful bidders concerned that they may have paid well over the odds. In the end, you only have one house to sell, and there will be disappointed people who missed out, whichever means of closing the sale you choose.

Andrew Turner Head of Residential Agency - Smiths Gore t: 01904 756300 e: andrew.turner@smithsgore.co.uk

Housing, energy efficiency and reducing heating bills Insulation

This makes a significant difference to a building’s energy performance. The Energy Savings Trust says loft insulation in a ‘typical’ detached house will cost £395 and result in an annual saving of up to £250. At the same time, special consideration must be given to ventilation for buildings that pre-date 1982. Letting in cold outside air can seem counterintuitive, but the risk of condensation forming in walls is a no-go. Good insulation installers always work to ‘insulate tight, ventilate right’. However, wall insulation in older properties can often only be economical during a renovation. Loft insulation is often the best value for money measure.

It’s available in rolls, ideal for regular spaces and in granulated form that can be poured into irregular areas; both should not be applied sparingly given the returns over time that good insulation will provide. Suitable ventilation above the insulation is important.

Rur al House Price Survey

More business investment a “major boost” for rur al economy, says CLA/ Smiths Gore survey Employment and investment will rise next year as the rural economy continues to benefit from a more positive UK economy, according to a survey by the Country Landowners Association (CLA) and Smiths Gore.

July’s Land Registry data shows a strong consolidation of price rises across a belt of Central and Southern England, with the East and South East both returning annual rises of 8.4%, and England’s smallest county, Rutland, leading the way outside London with 11.7%. Transaction levels have continued to rise across the country, and in the first quarter of 2014 were 35% higher than in the same period a year ago.

Whilst the headline numbers continue to look encouraging, we are starting to see some heat coming out of the market in a few of our regions, as more property comes onto the market, better balancing buyers and sellers. These remain the most encouraging housing market conditions outside of London for many years, but without the scramble for property seen in the capital, and more houses coming onto the market to satisfy demand, the scaremongering of some commentators, concerned that we may be heading for a property ‘bubble’, seems misplaced.

We are more than just the largest rur al property managers

Data from the Rural Economy Index for the first half of 2014 shows more farming and non-agricultural businesses expecting to increase investment in the next 12 months.

For agricultural businesses, optimism is up six percent reaching a net balance of +42 percent - the highest high since the survey started – as the farming sector continues to recover from its dip in 2012. More farming businesses expect to invest further in their businesses – a net balance of +36 percent, up from six percent.

Non-agricultural businesses have also become more positive about business investments, with a net balance of +46 percent expecting higher investment in the next 12 months, again the highest level recorded by the Rural Economy Index.

CLA President Henry Robinson said: “Investment is vital if the rural economy is to continue to grow and recover. It is a major boost that the survey shows investment is expected to rise in both the farming sector and non-farming businesses.”<>p>Dr Jason Beedell, Head of Research at Smiths Gore said: “Farming businesses continue to recover from a challenging 2012, and the balance now expect sales and profits to be higher in the next year.

“Just under 40 percent of the non-agricultural rural businesses reported higher sales over the past six months and 58 percent expect sales growth next year - fantastic news for the rural economy as a whole.”

Land Registry sell off scr apped Plans to privatise the Land Registry have been abandoned after a revolt by civil servants.

For more information, contact:

To request a free market appraisal click here.

Edward Hall t 01672 529056 edward.hall @smithsgore.co.uk

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Shona Ford t 01672 529057 shona.ford @smithsgore.co.uk