ashley moore financial

Empty Homes in the UK

odi — Wed, 30 Jul 2008 12:36:24 +0000

Did you know that the number of recently built houses this year was the lowest figure since the Second World War.? Because of a shortage of housing, the ratio of house price to earnings has increased above its long term average creating difficulties for first time buyers.

The government is keen to increase the number of new houses built. However, these often prove controversial. There is widespread opposition to new ‘eco towns’ which lead to a loss of the environment.

It is surprising to find out there is actually a huge number of empty houses in the UK. The Empty Homes Agency estimates that there are 840,000 empty homes in the UK. They also estimate that another 400,000 houses could be created from existing commercial property.

Why Are Homes Left Empty?

Cost of rebuilding dilapidated housing
Property speculation. People buy to leave. People buy a new house and then don’t let it out to maintain the new house’ premium. Rising property valued have meant less incentive to get rentable income
Problems in getting planning permission to develop houses.
Costs and bureaucracy of renting out houses.
People take time to sell houses they have inherited.
2nd Homes, which people don’t live in.

Problems of Empty Houses

Lower value of neighbouring houses. It is estimated an empty house can cause a neighbouring house to sell for 18% less than market average.
Increased risk of arson and theft.

Dealing With Empty Homes

Local authorities may use their Housing and Planning Delivery Grant to subsidise home improvements
Inform local council who have ability to power to place an empty dwelling management order (EDMO) on a home and make it be used.
Government tax subsidies for renovation and high tax on unoccupied houses.
A local campaign to encourage landlords to make use

What are your comments?

Estate agents – an endangered species

odi — Tue, 22 Jul 2008 07:39:37 +0000

Up to 15,000 estate agents could lose their jobs this year due to the sagging housing market, research has suggested.

Estate agents are most vulnerable to a sharp slowdown in activity in business services, the Centre for Economics and Business Research (CEBR) has concluded.

It believes that up to 40,000 jobs could be lost in the sector as a whole, with lawyers, accountants, architects and marketing professionals affected. The service sector shrank in May for the first time in five years.

‘Uncertainty’

Rising energy and transport costs are hurting businesses, undermining confidence in future prospects, the Chartered Institute for Purchasing and Supply reported on Thursday. Most leading analysts are predicting falls in house prices this year, with the most pessimistic forecasters expecting a double-digit drop in average prices.

This uncertainty, combined with the rise in the cost of mortgages, has significantly reduced the number of new mortgage approvals and is subduing the number of completed sales.

CEBR said it expected the value of activity in the housing sector to fall 3% this year and that 5% of those working in the industry could lose their jobs. It predicts total employment in the real estate sector will fall from 292,000 to 277,000.

“Estate agents and others involved in managing real estate are likely to find the next 12 months particularly tough and there will be extensive job cuts,” said the CEBR’s Jorg Radeke.

But CEBR expects the sector to start to recover next year although it argues that employment will not return to 2007 levels until 2011. “As real estate is among the first to face the economic downturn, it will also be among the first to benefit from a future economic upturn,” Mr. Radeke added.

British expats suffer technical aches

odi — Tue, 22 Jul 2008 07:29:25 +0000

Unnecessary gadgets are cluttering up homes in the sun.

An increasing number of Brits take electronics products overseas that are incompatible with foreign radio frequencies, manufacturer programming and electrical power.

The latest stats from the Office of National Statistics show that up to 4,000 Brits are packing their bags and heading overseas every week, with more than a quarter going to Spain and France.

Digital radios have been cited as one of the biggest headaches, as only 20% of radio stations in France and Spain, and just 5% in Italy, transmit at a suitable frequency.

Many UK televisions have also found a new lease of life as a doorstop, because single tuner functions prevent most television sets which are more than five years old from picking up foreign stations.

“Advances in technologies are making products smaller and lighter and more transportable, but it does not necessarily mean they will all work abroad,” said Currys electrical engineer John Wright.

“People who are purchasing products to take abroad should always check with the manufacturer or experts in store to make sure they are not left disappointed.”

To help combat the problem, Currys is offering tips to travellers taking tech goods overseas:

· There are 13 different types of plugs around the world so take plenty of adaptors.

· Use a converter with electrical products such as hair dryers, steam irons, shavers and toothbrushes.

· Use a transformer with electronic products such as radios, CD or DVD players, computers, fax machines and answering machines.

· If you’re purchasing a new TV, make sure it is a multi-tuner as TVs purchased before 2003 will not work abroad.

· Digital radios purchased in the UK will only work to an audio quality of 128Kbps.

· A country’s voltage is always written on its light bulbs.

Making a Will is just good common sense

odi — Tue, 08 Jul 2008 12:22:58 +0000

Most of us appreciate the need to protect ourselves and our families from unseen disasters. We insure our homes, our possessions and our lives so that, whatever may happen, our loved ones will be financially secure. Yet ironically, most of us, – that is around 70% of the adult population of the UK –fail to take the simple steps which can be more important than any of those.

Every day around 2,000 people die in the UK, but only a minority have made a Will (some of which are not even up-to-date or valid). Around 20 million people have yet to make their first Will.
ARE YOU ONE OF THEM?

It is up to you to make that crucial decision: “Today, I’m finally going to do something about my Will!”

Call 0870 7680000 today and speak to a specialist about writing your Will.

Your Buy-to-Let Checklist

odi — Tue, 08 Jul 2008 10:34:17 +0000

1. Ask for a discount

As a buy-to-let investor you have the same advantage as a first-time buyer when it comes to negotiating a discount, as you stand for less of a risk of a sale falling through.

2. Get clued up with the latest buy-to-let news

Read blog posts, view articles and ask around. Make sure Buy-to-let is where you want to invest your money.

3. Choose the right area

Is it close to public transport, are there schools nearby? Depending on the type of region, analyze your potential buyers and try and think of what they will look for.

4. Speak to a professional

Walking into any bank and asking for a mortgage is the worst thing that you can do. Different lenders offer different solutions some of which may suit your circumstances best. A specialist mortgage broker will be able to tell you which lender will work best for you and in the process help you save money. Remember that this is a free service and you are under no obligation to use them.

5. Do a Buy-to-let test

Do our buy-let-test and see if your property passes the test.

6. Consider the “what-if’s”

Besides your down payments and rental income, what will happen if the property is empty for a month. Will the deposit help you with falling prices?
Most buy-to-let investors look at a 125% turnover.

7. Think of it as a long term goal.

Even though you will be making the extra income, remember that you can ultimately push up the value and use the money as a deposit for an even bigger investment. Speak to a specialist about opening a separate savings account.

8. Hire an agent or do it yourself?

An agent might charge you a fee, but this means if anything goes wrong they will be physically responsible for dealing with the problem. If you decide not to have an agent, then be prepared to give up your plans when need be.

9. Look a bit further

Buying a property in your area might not be as profitable as buying a little further away. Consider all your options before buying. If you have an agent, they are obligated to keep an eye on your property for you, so you need not base your decision on that.

10. Rather be safe than sorry

Make sure you have enough money in the bank to prepare for things that can go wrong. If you are going to spend every last penny you have than rather wait a while longer.

Why you need a mortgage adviser

odi — Mon, 16 Jun 2008 10:35:09 +0000

The aim in searching for guidance from a mortgage adviser, instead of just tumbling into a large high street bank or building society, is to get the best possible deal out there. When making a decision on a mortgage by yourself, you will probably not be able to get the best deal out there. Mortgage Advisers know the business and not only do they know where to look for the best deals, but they will get you the type of mortgage that is most suitable to your unique needs. They do this by reviewing many different mortgages from numerous different mortgage lenders. It is also expected that your mortgage adviser will give you suitable mortgages according value, not favour.