smithsgore.co.uk

Marlborough NewsSeptember 2014

With house prices growing faster than incomes in many parts of the UK, Michael Robinson for the BBC reports that houses may ‘make’ more money than their owners in a year with their rise in realisable house value. Even for families who bought at the top of the house price boom of the last decade, moving is made increasingly possible with the contribution made by this silent breadwinner.

According to Barclays “a vote for independence only marks the opening chapter in uncertainty over issues ranging from the timelines for political and economic independence, resultant institutional frameworks, lender of last resort for Scotland, the division of assets and liabilities, fiscal impact and policies, and what currency choices Scotland will have available and choose”.

With considerable uncertainty over the possibility of an independent Scotland, we have already seen the pound falling to its lowest in 10 months against the Euro and USD, consequently there are questions posed for the property market:

• What will be the effect on the English property market never mind the Scottish one?

• Is now a good time to sell?

• If I delay selling what will the market offer next year with a general election which traditionally rocks the ‘property price boat’?

The BBC’s economics editor Robert Peston reported that “the longer the uncertainties persist, the more prolonged the UK will suffer from an elevated cost of finance, and the greater the harm there will be to economic growth - both sides of the border.”

However, John Coleman of estate agents Smiths Gore is sticking his neck out and saying that if you want a bargain purchase for property in Scotland buy now or risk paying more later.

The current state of the Scottish property market

John says “There are some good prices to be had on properties in Scotland just now, but after the referendum - whichever way it goes - prices will go up.

Some experts believe that house prices will come down in Scotland but Coleman believes that is unlikely to happen.

“The market has bottomed out in Scotland, and with less than a week to go before Scottish Independence is accepted or rejected, we are in a ‘calm before the storm’ situation. When there is more activity in any market, there is always a rise in value.”

And in England

The August RICS Residential Market Survey shows there is a slightly softer demand picture noticeable across the majority of the English regions as the recovery takes hold and the market returns to a more stable outlook.

John Coleman can be contacted in our Edinburgh office t 0131 344 0881

Questions over the effect of Scottish Independence on property prices?

Have you an extra breadwinner in your family?

Did you know that being trapped in a lift, but not in any immediate physical or medical danger is classified as non-urgent by the London Fire Brigade (LFB)?

The LFB attended 4,909 calls last year to release people shut in lifts and this represents a 54% fall in calls since 2008.

The LFB can charge lift owners £290 plus VAT for a non-emergency if it is the third callout.

It is currently owed nearly £250,000 in unpaid charges!

Flat living?

smithsgore.co.uk

To request a freemarket appraisal click here.

We are more than just the largest rural

property managers

Examples Costs and Returns *

The table below provides some indicative costs and returns for renewable heating systems in the UK. Please note that these costs will be site specific and it is important to choose the right technology for your property rather than based simply on the returns shown below.

TechnologyExample

CapacitiesMost Suitable

House type

Typical Project Costs

RHI Subsidy

Payback Period**

Annual Fuel

Savings

Biomass (pellets)

25 kWPoorly insulated

£15,00012.20 p/kWH

3.5 years £1000

GSHP 15 kWModern with under floor heating

£29,00015.80 p/kWh

2.0 years £1,500

ASHP 15 kWModern with under floor heating

£9,000 7.30 p/kWh 5.6 years £700

Solar Thermal

5 kW Any £7,50019.20 p/kWh

3.9 years £300

*Source: Department of Energy and Climate Change **Payback takes account of fuel savings and RHI income

The Smiths Gore Sustainability & Renewable Energy (SRE) Team can help you by:

• Identifying the most suitable RHI eligible technology for the building and for your needs.• Provide installation description include sizing, fuel usage and siting.• Estimate costs and payback periods.• Identify key requirement in order to qualify for the domestic RHI.• Detail the next steps to take the project forward.

Alan Harries can be contacted in our London office if you would like advice on the RHI or require assistance on any potential project t 0207 409 9490

Last month we looked at insulation. This month it’s Renewable Energy and Domestic Biomass Heating:

More than 48,000 homeowners have used the government’s Help to Buy scheme since it started, figures have shown. But there is some evidence that the popularity of the scheme may have peaked as the number of people using the mortgage guarantee part of Help to Buy fell in June, compared with May.

One housebuilder reported that the equity loan part of the scheme - used for new-build houses in England - was less popular this summer than in 2013. In total, 18,564

people have used this scheme since it began in October 2013 and according to the government purchases made through Help to Buy generally have accounted for 6% of all property transactions since the schemes began.

Fall-off in Help to Buy Demand

For more information, contact:

Edward Hallt 01672 529056edward.hall@smithsgore.co.uk

Shona Fordt 01672 529057shona.ford@smithsgore.co.uk

Price momentum firm but demand moderates furtherThe August RICS Residential Market Survey shows that price momentum remains strong at the headline level. This is despite agreed sales falling for the first time since September 2012 and a further drop in new buyer enquiries.

Anecdotal evidence suggests that growing speculation over the timing of the first Bank Rate rise and increased rhetoric from policymakers regarding potential risks in the housing market may have had an impact on buyer confidence.

This change in tone may also be partly attributed to the MMR in both restricting finance to certain potential buyers and leading to a lengthening in transaction completion times for others.

It is interesting to note that whilst London prices are enjoying mild price growth, the Capital still has by far the slowest growth of any area covered by the survey and demonstrates a significant turnaround from the beginning of the year.