Marlborough Newsletter March

Marlborough News March 2014 Rur al House Price Survey - January 2014 National View Land Registry data for all house transactions in England & Wales to the end of January confirms the acceleration in the national trends, with growing confidence in the market underpinned by Help to Buy and the frenzied activity in central London, but the national figures hide some key regional variations.

Nationally, prices rose by 1% in January; an annual rise of 4.2%, to an average price of £168,356. London rose by 10.9% to £409,881.

Interestingly the major activity in the capital has not been in the foreign buyers’ hotspots of Kensington & Chelsea and Westminster, but in Hackney, which experienced an eye-watering 20.4% in the year – 2.9% in January alone – to a new high of £526,361.

Outside of the capital, the general picture is that the counties nearest the capital are performing best, as the ‘London Effect’ filters outwards, but, with more activity in the market than for many years, some interesting regional variances are opening up.

A look at our ‘heat map’ for the end of January compared with 6 months ago shows the dynamic changes that have taken place since last summer, with virtually the whole of England now into positive growth, but the most intense activity clearly centered around the South-East, and some of the more deeply

Planning: National park barns protected

National parks are to be protected from unwanted barn conversions after protests from countryside campaigners.

It is understood that ministers are to shelve plans to make it easier to change the use of agricultural buildings in protected areas. The conversion of redundant farm buildings into up to three houses in national parks would have been automatically granted without the need for an application under the measures. National parks, areas of outstanding natural beauty and conservation areas will now be exempt from the new rules.

Annual change in house prices Year to the end of January 2014

rural counties reacting more slowly. All-in-all, the most positive national outlook for 7 years.

Editor’s View After years of stagnation Wiltshire is showing a 2.3% annual increase over the year. But that is only the average picture.

Locally Marlborough is quite buoyant with demand outstripping supply and the pressure is building on prices, although there is no suggestion of a housing bubble. The confidence in the market, fuelled generally at the entry level by initiatives such as the Help to Buy Scheme, is filtering through the system, but we find most properties are not being sold to jump on a profit bandwagon, but to enable movement in a more social context, allowing downsizing and job relocation.

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The Budget Smiths Gore welcome the extension of the Help to Buy scheme for new homes for a further 4 years to the end of the decade, which we believe will provide a significant additional boost to housing market, and to the share values of the major housebuilders, which have nearly doubled since the scheme’s introduction.

We see it as a lost opportunity that the Chancellor hasn’t tackled the issue of

Stamp Duty. Once considered a Super Tax on only the largest houses, Stamp Duty is now a significant burden on virtually every house buyer and, at the key points of £250,000 and £500,000, causes a major distortion on the market, and significant hardship to those whose properties are worth up to 10% or so more than the threshold amounts.

Mortgage approvals at 6 year high The British Bankers' Association has reported that just under 50,000 mortgage approvals for house purchases got the go-ahead in January, worth around £8bn and up 57% on a year earlier. It was the highest number of home loans since September 2007 and, according to analysts, further evidence of Britain's strengthening housing market.

And, the Nationwide Building Society reported that house prices rose by 0.6% in February, a 9.4% increase on the same month in 2013. The annual rate of growth is the fastest for almost four years.

RENTALS: London rents double the rest of the country Landlords taking on new buy-to-let properties in London are charging twice as much rent as those in the rest of the country, according to data from BM Solutions. The average rent in the capital hit £1,417 a month in the second half of 2013, compared with £701 across the country, the lender said.

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Smiths Gore is proud to sponsor the local rugby team Smiths Gore is proud to invest in the youth of the local community and recently joined with Marlborough RFC as key sponsors for the junior section.

Edward Hall, Head of Agency, who presented the teams with new rugby balls said: “The enthusiasm and level of skill of the youngsters is inspiring and Smiths Gore is delighted to be able to contribute in a small way to the continued success of all the teams.” Peter Woods, Chairman of the Junior & Mini Section said: “Marlborough RFC are delighted to welcome Smiths Gore as a sponsor, which adds considerably to the level of training we can offer our players”.

Interest r ates to rise Interest rates will rise six-fold by 2017 as Britain's economy becomes one of the fastest growing in the developed world, Mark Carney the Governor of the Bank of England said recently. The increase to more "normal" levels is likely to put many borrowers into financial difficulty. Brokers are expecting a rush of borrowers wanting to fix their mortgages.

Separately, Mr Carney admitted he has no direct control over soaring house prices in prime central London. He told MPs that the Bank did not have the “tools” to dampen the market in the capital’s affluent central boroughs, which was driven by cash buyers, many of them from abroad.

Floods lead to jobs Flood damage has revived the construction jobs market for the first time in more than five years, according to recruiter Manpower. The company's overview of hiring intentions showed more building firms intending to take staff on rather than cut employees over the next three months - for the first time since 2008.

Supply and Demand better mortgage deals having helped absorb some of the "pent-up demand.

But prices are still likely to continue rising, according to RICS. There are still too few properties coming on to the market, RICS said, which means prices are likely to keep going up.

The "furore" in the UK housing market is dying down because a recent surge in demand is "gradually exhausting itself", according to surveyors.

The increase in would-be buyers was at its lowest point in almost a year during February, the Royal Institution of Chartered Surveyors (RICS) reported with

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Housing: Homes on stilts

People in flood-risk areas may have to live in houses built on stilts, a senior Environment Agency official claimed recently. David Rooke, the EA executive director of flood and coastal risk management, also warned it is not possible to protect every property.

When asked if Britain should follow the Dutch example of building amphibious homes on stilts while flooding some areas to protect others, he was quoted in the papers as saying: "I think we will need to consider all of those."

Friends of the Earth is calling for more investment in flood defences and greater effort to stop climate change becoming worse.

Edward Hall confirms this viewpoint from the Marlborough High Street: “At the beginning of the year, it felt like the ‘January sales’ in the property market! But this surge in demand, has gradually levelled out to more normal levels. Even so, there are just not enough houses coming on the market to satisfy demand.” he said.

Featured Property West Overton, Marlborough Believed to date from the 16th century, this detached thatched cottage was originally several dwellings and its rich history is evident in the superb exposed beams and crutch frame. Lovingly renovated over the past 18 years, this delightful Grade II listed property exudes warmth and charm with spacious rooms and good ceiling height. Two brick outbuildings, off road parking and a cottage garden crafted with love complete this picture postcard property.

Guide Price £525,000

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