Marlborough newsletter - February 2015 issue

Marlborough News February 2015 Round Up of the Property Surveys The latest RICS (Royal Institute of Chartered Surveyors) Residential Property Market Report (January 2015) suggests the overall property market is showing signs of steady, stable growth with the London market the only area reporting falling sales and prices.

Interestingly the regions of Northern Ireland and Scotland were the strongest areas for growth and prices.

support for the banking system, as there has been a tightening of the market mechanisms over the last 18 months to ensure banks lend responsibly with the introduction of the MMR (Mortgage Market Review). However, there is definitely more liquidity in the market now with deflation likely to lead to mortgage rates lowering even further and the Bank of England might (just might) consider lowering the base rate further.

The lettings area is also showing continued demand growth but the supply is tightening in areas. This is very much reflected in the Marlborough local market.

How accurate are such surveys likely to be? Well in March 2013 the RICS Chief Economist Simon Rubinsohn said: "Our housing market survey is out this morning. In truth, it is a little disappointing but interestingly, surveyors' expectations on both prices and activity for the balance of this year are turning much more positive. Sounds like a reasonable bet on both next week's budget and the incoming governor of the Bank of England providing more liquidity through enhanced support for the banking system."

He was certainly right on the button with regard to the more positive mood for 2013 and 2014, but at Smiths Gore we might take issue with the enhanced

News Bites • The first straw houses to be offered on the open market in the UK went on sale this month. The homes are the result of an engineering research project led by the University of Bath.

• The number of new mortgages approved to house buyers in December, but not yet lent, rose slightly to 60,275, according to the Bank of England. Although the number of approvals was a little higher than in November, it was 17% down on December 2013.

• UK home sales went up by 14% for the whole of last year to 1.22 million, the highest number since 2007. Recent surveys have shown that house prices across the UK have in fact stayed fairly flat since last summer.

Positive Indicators Inflation Keeps Going Down!

Prices Index inflation fell to 0.3% in January, its lowest level since records began according to the Office for National Statistics. January's figure is the lowest rate of CPI inflation since estimates of the measure began in 1988. The Bank of England said last week that inflation may temporarily turn negative in the spring.

• Small increase in recent mortgage approvals rates, which might be down to a decrease in interest rates (average rate in December was 3.0%, down from 3.2% in the summer).

• The Help to Buy Scheme, launched in April 2013, has now helped the purchase of 41,533 homes in England. Of the total purchases, 34,419 or 83% were made by firsttime buyers.

Thinking of Selling!

It’s a cliché that we should plump the cushions and check the kerb appeal - but it works! A ‘staging company’ in London recently demonstrated how well it works by taking a property with an asking price of over £3million, which wasn’t selling and within three weeks, it sold for £240,000 over the guide price!

How? • Clear the eyeline: use furniture that’s • Don’t make it personal but don’t of low height so it doesn’t dominate be impersonal too! Have one or two the room and display fresh flowers to personal photographs but not lots! breathe some life into the space.

• First impressions count: clear the clutter and clean! Keep things light and fresh.

• Think about your furniture: if it’s too big for the space or there’s too much of it, remove it or move it around.

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Repossessions The Council of Mortgage Lenders (CML) says repossessions fell by 26% to just 21,000 the lowest level since 2006, with mortgage arrears also falling to an eight-year low.

Figures from the Ministry of Justice show that 42,000 tenants saw their homes repossessed by their landlords last year.

That was an 11% jump on 2013 and the highest annual figure since modern records started in 2000.

Guest Columnist this month is Robert Collins, Solicitor, Withy King, Marlborough Jointly owned property and cohabitees If you’re buying a property with your partner and you’re not married or in a civil partnership, you won’t automatically have the same legal protection as you would have if you were married/civil partners.

How can I make sure my investment is secure?

In most cases, an unmarried couple buying a property together should have a Co-ownership Agreement with a Trust Deed drawn up by their conveyancing solicitor at the outset.

How the courts currently work The court will initially look for evidence of what was agreed between the parties at the time you bought the property, as to how you would own it. It may be that you’ve entered into Trust Deed (more about this later) but in the absence of clear evidence here, the court will try to piece together the basis of an agreement from the parties’ conduct over the years.

It’s not too late By considering the position properly at the time of purchase, you can avoid potentially costly and stressful arguments if your relationship were to break down in the future. Even if you have already owned the property for some time, it’s still not too late to prepare a Trust Deed.

However, generally speaking, when deciding what proportion of the equity each partner should have, the court will focus on direct financial contributions to the property whether through payment of the deposit or subsequent mortgage payments.

For more information about buying a property with your partner and Trust Deeds contact Robert Collins, Partner at Withy King on robert.collins@withyking.co.uk or 01672 518820.

Steady as She Goes!

According to the Office of National Statistics (ONS), for 2014 house prices rose fastest in England at 10.2%, and by 5.5% in Scotland, 4.9% in Northern Ireland and 4% in Wales. The national picture was heavily influenced by London where prices went up by 13.3%. The ONS say the average UK home now costs £272,000.

House price inflation started to cool in August last year just before the Scottish Referendum in September.

Before that it had been accelerating since the beginning of 2012.

Editors Note: We expect 2015 and beyond to show steady low growth as demand factors are good and a short period of deflation will make us all feel a little more wealthy.

Did You Know?

On 28 April 1653 the Great Fire of Marlborough started in a tanner’s yard and spread quickly. Eventually after four hours burning, around 244 houses had been lost to the fire. Fire swept through the Town again in 1679 and again in 1690. This time, an Act of Parliament was passed “to prohibit the covering of houses and other buildings with thatch in the Town of Marlborough”.

During the rebuilding of the town after the Great Fire, the High Street become one of the widest in England, although we understand the actual widest is in Stockton-on-Tees.

We are more than just the largest rur al property managers

The Mansion Tax: How many homeowners would be affected?

According to a BBC report and the valuing company Hometrack there are about 58,500 homes with a value in excess of £2m across Britain. Zoopla puts the number at about 108,000. What is agreed is the vast majority of these properties - well over 80% - would be in London and the South East of England.

In 2010, the Lib Dems estimated that 70,000 properties would be affected.

House prices might be highest in London, but it doesn’t necessarily mean that it is the most expensive place to buy if you consider salary rates. The map provided by National Housing Federation/ONS/Land Registry illustrates areas of the country, where the house price/salary ratio can reach over 2000%.

The Money Advice Service's research reveals habits of married couples One in ten (9%) married adults in the UK admitted they currently have an ‘escape’ fund in case the relationship doesn’t work out, while an additional 14% said they've had one previously. The average amount was around £7,500.

In the survey, nearly one in seven (13%) married UK adults had a secret ‘stash of cash’ which their partner doesn’t know about. Of these, 38% were worried their partner would want to spend the money if they knew about it. One in five (20%) kept their cash on the quiet as they wanted to be sure their partner didn’t just like them for their money.

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