Blackadders' Property Blog. Covering Dundee, Arbroath, Forfar and beyond

Our clients now have the opportunity to add a black and white square bar code to their property For Sale board. By scanning the QR (quick response) code via their smart phone or iPhone,  a prospective property buyer will have instant access to the property’s details including price; images; floor plans; the full schedule and the Home Report.

Lindsay Darroch, head of property said “We are keen to allow our clients to benefit from technological advances and in these uncertain times we believe vendors need an agent who uses innovation and technology to add value to the their transaction. With more and more people owning an iPhone or smart phone we saw an opportunity to increase the number of people who viewed our properties for sale.  Think about this scenario:- a potential buyer is passing a property we are selling and is very  interested – at the moment they would have to find a pen, take a note of the property details, our telephone number and find the property online when they returned home – now the property details can be viewed instantly by any interested passer-by simply by scanning the code and they could arrange an appointment to view that property on the spot.”

If you do not have an inbuilt QR reader on your mobile device you can download one for free from the iTunes store or from the Android Market Place for smart phones using Google’s operating system.

I was very interested to read a report from Capital Economics indicating that they expect the American housing crisis to end during 2012.  The reason given is a loosening in credit (based on a reduction in the average credit score required to obtain a mortgage loan) and while the score is higher than pre-crisis levels, it is certainly coming down.  Other market indicators are also pointing not just to a stabilisation of mortgage lending standards but also a loosening of credit availability,  increasing the amount of loans available compared to earnings and banks also loosening value ratios.  Capital Economics believe these indicators will go some way to showing an improvement in the housing market, however, they are warning that there are still threats to future credit availability posed by the Eurozone.

I take this as a very positive report.  I believe that an improvement in the American economy coupling with the grasping of the Eurozone problems should signify an improvement in the UK housing market in particular and the UK economy in general.

I will continue to keep you advised of trends.

For those who are thinking about marketing their property we are pleased to offer an option of a FREE home report for clients who list their property with us during the month of February – subject to terms and conditions and availability.  I would also urge first time buyers who are considering purchasing property in the near future to take advantage of the stamp duty relief before it ends on 24^th March.

 

Following on from my previous blog regarding access to 95% mortgages I was pleased to read a pledge by HSBC confirming that they are to lend 15 billion pounds in mortgages this year with 3 billion pounds earmarked for first time buyers. If they achieve this pledge this would represent a market share of in excess of 11% making HSBC the fifth largest UK lender. This is a very positive pledge especially in relation to first time buyers. As I have always argued it is very important for the housing market to get house first time buyers on the ladder to get the whole market moving. I hope this is the start of many positive announcements from lenders in relation to mortgage lending and I will keep you advised.

A recent survey carried out by Taylor Wimpey shows people are living with their parents more than a decade longer than they intended to as they wait to get on the property ladder. This problem has been exacerbated by the lack of mortgage funding for first time buyers. There has previously been an increase in requests for assistance from mum and dad but the survey also shows that 65% of parents advise that they simply don’t have the spare funds to help their children with a deposit for a house with nearly a quarter admitting that they themselves are struggling to keep afloat. This is a worrying trend and again shows the need for government to take action to assist first time buyers.

I am delighted to announce that I have just been advised by our mortgage brokers that they have today received access to 95% loan to value mortgages from a main high street lender. The usual caveats apply in that the product is subject to terms and conditions and also availability but I take this as very welcome news. I have long argued that mortgage availability is key to the housing market progressing and developing and hopefully this is the first of many similar products to hit the market in the next couple of weeks. This also re-enforces  the importance of clients receiving independent mortgage advice as part of the purchase process. For more information please don’t hesitate to contact either myself or any member of the Blackadders Property Team on one of the usual numbers. I will continue to keep you advised of developments.

Recently published data from Mortgage Brain shows that the number of mortgage products available to intermediaries has risen marginally over the last 6 months increasing by 6%. Mark Lofthouse CEO of Mortgage Brain said “the past two years have seen vast improvements in product availability for intermediaries. But whilst it is clear that the market has made an impressive and much welcomed recovery since 2009 our latest half-year analysis is showing that the market is levelling out.”

As I have previously stated the availability of mortgage finance will go a long way to determining the Scottish property market in particular and the UK economy in general for 2012. This increase is welcome especially compared to the roller coaster in previous years however more sustained activity is required.

The most recent report from the Glasgow Solicitors Property Centre indicates that house prices in the west of Scotland are approximately £4,000 higher than they were a year ago after a rally in the final months of 2011.  GSPC Chief Executive Mark Cordon advises “significant numbers of home owners are sacrificing a quick move to maximise their sale price.  Also the fall in the number of new instructions ultimately restricts supply and so helps to support prices.”

I find this report interesting as it reinforces the current east/west divide in the Scottish property market.  On the east coast property prices remain stable with the number of properties coming on the market also remaining relatively  stable .  I also do think that there is a fallacy in relation to house prices as most sellers are not in a position to drop their prices below a certain amount most often determined by the level of their outstanding mortgage and the requirement of a deposit for a future purchase. 

I will continue to report on trends and reports.

The National Association of Estate Agents has revealed its predictions for the UK property market for 2012.  They predict a gradual recovery for the UK property market with lack of available finance being the biggest barrier to would be home buyers.  This ties in very much with my view and I was also pleased to see that the NAEA are indicating that house prices on average will see little change.   Peter Bolton King, Chief Executive, said “confidence in 2012 will be a key factor and this, to some extent, will be driven by the media”.  I believe that certainty and confidence will be the two watch words for 2012 and if we can get some positive messages out into the media this will have an impact on the UK housing market.

I was  interested to note the launch of a report by the IPPR Think Tank which calls for more Housing Association tenants to be given the right to buy their homes.  The report was championed by two MP’s David Davis and Frank Field.  The IPPR’s report said extending right to buy could generate billions of pounds which could then be reinvested in building new homes to ease waiting lists. 

Readers of previous blogs will know that I have been urging the government to take this step as part of a plan to unlock the housing market.  I am of the view that if Council tenants and Housing Association tenants are given the right to purchase their property at a discount, this will not only lead to an increase in home ownership but if all funds raised were used to build new homes this would go some way to alleviating the issue of homelessness whilst also providing a welcome boost to the ailing construction industry.  Mark Henderson Chief Executive of The Home Group Housing Association said that extending the right to buy could inject more than 68 billion pounds into the economy. 

I note that Grant Shapps, the Housing Minister, has advised that the government would consider this idea as part of its review of housing policy and I would call on both the UK and Scottish Government to give this proposal serious consideration and act on it as a matter of urgency.