STRONG END TO YEAR FOR HOUSING MARKET

21^st December 2010                                                                                                                                                                         ND003

A local firm of property specialists is reporting a strong end to 2010 and predicting the housing market will continue to recover over the coming year
.

Shropshire-based Nock Deighton has seen a steady volume of house sales during November and December, as confidence grows amongst both buyers and sellers across the region.

The firm sold more than £3.6million worth of property during November alone, with houses across various price ranges – and in both urban and rural areas – attracting substantial interest. Even more niche properties have sold, as buyers start to see the green-shoots of recovery and push on with their plans.

Michael Evans, Managing Director of Nock Deighton, commented: “We were anticipating something of a lull in demand in the run-up to Christmas, but we’ve actually just seen one of our best sales periods of the year.

“I’d urge an element of caution over national media generalisations and ‘scare stories’ about the current state of the housing market. Shropshire property prices continue to remain strong compared to the UK average, and parts of our region are still amongst the most sought-after areas to live. Many of our recent buyers are from London and the Home Counties, and haven’t let the market uncertainty put them off from seeking a better quality of life here.”

Michael concluded: “Looking forward to 2011, it will certainly be another challenging year, with government cuts and increases in VAT on the agenda. But if sellers are realistic with their prices and properties are actively marketed by estate agents and lettings agents, Shropshire will continue to be a prime location, and we predict house prices will continue to recover at a speed above the national rate of inflation.”

Formed in 1831, Nock Deighton is one of the Midlands’ most well-established and respected firms of estate agents, lettings agents, chartered surveyors and auctioneers. The company stands at the forefront of the modern property sector by embracing up-to-the-minute technology and industry best practice, and has a firm focus on achieving the very best results through a full range of specialist property-related services and dedicated staff. For further information on Nock Deighton’s professional services, contact Nock Deighton’s Shrewsbury office on 01743 241251 or visit http://www.nockdeighton.co.uk/  

Shropshire country homes selling well

Thursday 16th December 2010, 11:29AM GMT.

Severn Brow, which was on the market for £1.35 million

Shropshire’s reputation as one of the most beautiful counties in Britain is helping to soften its exposure to the nation’s property slowdown.

That is the view of a leading county estate agent, which has revealed that Shropshire homes at the top end of the price bracket are still selling well – particularly those properties in rural locations.
Nock Deighton, which has offices in Telford, Shrewsbury, Bridgnorth and Ludlow, has just completed the sale of Severn Brow, on the outskirts of Bridgnorth, which was on the market for £1.35 million.
It has been sold to an unnamed local family after what the agents described as “a significant number of inquiries from a range of buyers”.
The detached home, with seven bedrooms, was built in 1950.
Property information website mouseprice.com reveals that its value had more than doubled since the house was last sold eight years ago, when it was valued at £580,000.
Two other homes on the rural fringes of Bridgnorth, Meadow House and Oldbury Cottage, have also sold.
The properties, which were both said to be in need of modernisation, were on the market for £750,000 and £400,000 respectively.
Nock Deighton director Michael Nettleton said: “Despite some indifferent news stories regarding the state of the housing market, we continue to buck the trend.
“It just goes to show that good quality homes at realistic guide prices will always be in demand.”
He added: “In our experience, the property market is not as bad as many would have us believe.

Read more: http://www.shropshirestar.com/money/property/2010/12/16/shropshire-country-homes-selling-well/#ixzz18MiQK14U

INJURED TROOPS REAP REWARD OF ANNUAL EVENT

A Midlands property specialist’s annual charity gala has raised nearly £700 to support armed services personnel injured on the front line.

Shropshire-based Nock Deighton’s ‘Beaujolais’ event at the Coach and Horses in Shrewsbury saw £685 donated to Help for Heroes, the national charity that provides practical assistance to British troops wounded in Iraq and Afghanistan.

More than 40 guests, including representatives from national banks, local solicitors, surveyors and estate agents, enjoyed a three-course meal, prize raffle and charity auction, along with the grand unveiling of a new Beaujolais wine. The firm’s annual gathering dates back more than 25 years, during which time it has raised money for a number of charities, including Children in Need, the Poppy Appeal, and the National Society for the Prevention of Cruelty to Children (NSPCC).

“This year’s event was one of our most enjoyable yet, but even more importantly, it managed to raise a significant sum of money for such a worthy cause,” David Perrin, Director for Nock Deighton, said. “This is the second year that we’ve raised money for Help for Heroes and we’d like to thank everyone for their generosity. We look forward to seeing their money make a real difference to wounded soldiers.”

Belinda Hutchinson Smith, of Help for Heroes’ Shropshire Committee, revealed:  “Although the money raised from the event goes into Help for Heroes’ national funding pot, it will aid our ongoing work with the Royal Irish Rangers regiment, which is based in Tern Hill.”

Since launching back in 2007, Help for Heroes has raised more than £70million to help troops injured on the front line. As well as backing a series of major capital projects, such as funding the construction and refurbishment of rehabilitation and medical facilities across the UK, the charity also spends cash on providing more practical, small-scale support for individual servicemen and women.

Belinda explained: “Sometimes troops have to be air-lifted home for treatment still wearing their combat kit. We can provide them with a simple pack containing clean t-shirts, clothes and a few other odds and ends, like CDs or magazines, to give them that little bit of dignity and encouragement at the start of their road to recovery.”

Formed in 1831, Nock Deighton is one of the Midlands’ most well-established and respected firms of estate agents, lettings agents, chartered surveyors and auctioneers. The company stands at the forefront of the modern property sector by embracing up-to-the-minute technology and industry best practice, and has a firm focus on achieving the very best results through a full range of specialist property-related services and dedicated staff. For further information on Nock Deighton’s professional services contact Nock Deighton, Shrewsbury on 01743-241251 or visit http://www.nockdeighton.co.uk/  

House prices actually rise in November

House prices increased to the highest in more than two years in November as the market showed signs of reaching a peak, research company Acadametrics Ltd. said in an estimate released today.

The average price of a home in England and Wales climbed for a seventh month, gaining 0.2 percent to 224,758 pounds ($354,200), the groups said in an e-mailed report today. Values rose 5.9 percent from a year earlier and are now at the highest since June 2008.

Acadametrics’s estimate of increases in recent months has contrasted with data from mortgage lenders including Lloyds Banking Group Plc’s Halifax division, which said yesterday that prices fell 0.1 percent. With banks unlikely to loosen lending criteria in the medium term and a possible increase in interest rates to combat inflation next year, housing market values may soon come under pressure, the report said.

The Acadametrics report showed the number of transactions dropped 4.6 percent from October. That’s a decline of 5.3 percent from a year earlier.
Values in London rose 0.5 percent to 383,243 pounds in October, the month with the latest available regional data, while the biggest price drop was in East Anglia, where values fell 0.6 percent.

‘Flat Market’
“Overall, 2010 has seen a flat market, but one with some significant regional and local variations of which buyers and sellers need to be aware,” Acadametrics Chairman Peter Williams said in the report. “Going forward, we expect to see a similar pattern in 2011.”

Acadametrics combines initial housing transaction data from the U.K. Land Registry and results from other price measures to produce an estimate for the most recent month for its index. That number is then revised in following months.

The Bank of England yesterday kept its emergency stimulus program unchanged after recent data suggested the economy may be strong enough to weather the government’s spending cuts, undermining the case for more aid. Policy makers held their bond-purchase plan at 200 billion pounds and their main interest rate at a record low of 0.5 percent.

Location Location Location!

Property Experts Nock Deighton are pleased to announce the successful sales of three of the most exiting properties in the Bridgnorth area.

Severn Brow is perhaps one of Shropshire’s finest homes. On the market for £1.35m, the property enjoyed a significant number of enquiries from a range of buyers. A local family were the eventual successful purchasers who were ecstatic to be in by Christmas.

Two further properties to come on the market were Oldbury Cottage and Meadow House. Both of which were ‘properties in need of work’ that experienced some competitive bidding. Once the new owners have made their mark, they will both undoubtedly be some of the finest homes for some miles around.

Company Director Michael Nettleton says; ‘Despite some indifferent news stories regarding the state of the housing market, we continue to buck the trend. It just goes to show that good quality homes at realistic guide prices will always be in demand.’

House Price Indicies; useful but not definitive.

FTA In Depth: Putting a price on the housing market

• Story by: Donia O'Loughlin
• Magazine: FTAdviser
• Published Wednesday , December 08, 2010

The UK's obsession with property has spurned a plethora of house prices indices, each claiming to be a definitive account of the nation's housing market.

But with each giving widely differing pictures of the state of the housing market, consumer groups are questioning their validity.

The Office for National Statistics (ONS) appears to agree.

It is investigating what it called the "coherence and comparability" of house price indices after a number of people confessed being confused by the data.

Industry professionals are dismissive of the OFT's investigation. They claim the mixed picture is due to the different kinds of methodology used and that the data does not conflict because different indices track different elements of the housing market.

The five main indices in the market include LSL Acadametrics house price index, Rightmove, Nationwide and the Communities and Local Government (CLG).

Stuart Law, chief executive at Assetz, said: "It is important to remember that the monthly indices use different sources of data and represent the different stages of the buying process such as asking prices, mortgage approvals and sold prices."

For example Rightmove tracks asking prices for properties, whereas Halifax and Nationwide only look at their own mortgage completions so use smaller samples, while the Land Registry looks at completions.

Pick and mix

Richard Sexton, business development director at E.surv, claimed the the indicies catered to different elements of the house-buying public.

Mr Sexton added: "People need to decide what they are interested in and then pick their index."

Martin Ellis, housing economist at Halifax, added that there was demand for house price indices and providers were keen to provide the information but that the results were sometimes inappropriately applied with erroneous results.

Mr Ellis said: "At times it can be confusing for consumers. "Perhaps some providers need to make their methodology clearer and the media should also highlight the methodology to emphasise to consumers how this data was reached."

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (Rics), said the housing market was not a single market and that indices sometimes treated it as such.

He said: "Consumers need to look at the locality for individual sales such as a borough in London or an individual street.

"The headline growth rates are often quite misleading and this adds to the confusion.

"If you live in a ‘bad’ area or a ‘good’ area, the headline figures will not be relevant to you. Even regional statistics cover a broad area. There will always be that issue with regional data."

Go local

Instead of focusing on indices, Mr Law urged consumers to look at what is happening locally. This, he said, would give house-buyers a more accurate reflection of waht was going on.

He said: "Each area is localised and researching what is happening to house prices where you are trying to buy or sell is the best indicator as to what prices are being achieved."

Mr Sexton and Mr Law agred that the LSL/Acadametrics index was the most accurate out of all the indices.

Mr Sexton said: "Essentially it is an index of indices and therefore should smooth out errors that may distort others over the short term."

Mr Law added: "We have found this to be very accurate indeed and is often little revised over following months from the initial estimated announcement.

"We believe it uses the best and largest sample of housing transaction data in the UK."

Mr Rubinsohn classed the Land Registry index as more authoritative than the others.

He said: "It gives more observations than the others as it includes sales and transaction levels but it only covers England and Wales and lags behind the rest of the market by a few months.

"The methodology reports sales but only resales – it doesn’t report on the new build market. It has its faults but in my opinion it is the best indicator.

"Although I think this one has more merits, it doesn't mean that others are obsolete."

One index, one standard?

Mr Law believes there should be an industry standard for the property market and claimed that LSL Acadametrics index provides the best model for this. This was largely due to the immediate data based upon most of the mortgage offers in the UK and the large sample sizes used.

Mr Sexton and Mr Ellis disagree.

Mr Sexton said: "My opinion is that the best measure is the change in the completed sales price for a given sale, including all transactions i.e. those supported by mortgage plus cash purchases.

"To be useful, an index needs to answer in a broad, perhaps regional average, sort of way how much a property is worth in today's market if it was bought a year ago answer this."

Mr Ellis added: "If you put the housing indices together in the right order from mortgage applications to completions, they surprisingly show the same things/patterns.

"It's important for a consumer not to put too much value on a particular index if you are just looking at a monthly basis but you need to look at a longer three-month trend that gives a better indicator."

NAEA Predictions

‘Postcode power’ in 2011 property market

The NAEA has revealed its predictions for the UK property market over the next 12 months.
NAEA chief executive Peter Bolton King predicted the rise of ‘postcode power’ as premium areas emerge from the slump at a faster rate than others.
Any recovery, he warned, will be strongly dependent on the major lenders making mortgage finance more available. Bank of England decisions on interest rates will also have a major effect on the market. The monthly wait for the MPC’s decision on interest rates will be a nervous time for both existing and potential borrowers.
However, Mr Bolton King said that, while the housing market faces a tough year, he was confident that no widespread drop in house prices would occur.
He said: “The housing market remains in a state of fragile recovery as the year ends. Frankly, however, this recovery is threatened by the stubborn refusal of major lenders to loosen their self-serving restrictions on mortgage lending.
“A historically low rate of interest has benefited those people who already have a mortgage, but it is likely that over the next 12 months it will rise. That will place more pressure on existing borrowers but also remove mortgages from the reach of even those house buyers with large deposits.
“The danger is that a backlog of pent-up demand for property emerges. That means the market will suffer from lack of demand in the short term and potentially be distorted by a rush of demand when these people can finally get onto the ladder.”
He added: “We do not believe that there will a widespread fall in house prices over the next 12 months. There will be ups and downs, but I’m confident that we won’t see a plunge.
“What we will see is the emergence of ‘postcode power’ – as demand for property in some areas fuels a healthy market while other, less desirable areas, are in danger of being left behind.”

Well done Tom and Chris @ our Ironbridge Office.

Hi Tom

Thanks for the message-I will get in touch with him.

I am sorry this is so belated but we want to drop in a small thank you to you and Chris but the removal men have packed them and it is still chaos. I will find them and pop them round sometime.

I really appreciated the professional way you both approached everything and chased and chased to make it all finally happen. It was horribly long and frustrating but we made it and love our new home despite the dodgy wiring, horrific carpets and hilarious wallpaper! I am sure you are as relieved as we are when we finally completed.

You were extemely kind on that Friday 13th when the original buyer pulled out and your subsequent action is getting everyone round within days was amazing. I have no hesitation in recommending you and the firm to anyone.

Thank you for all you and Chris did.

Kind regards

Catherine

Flooding - A Surveyors Perspective.

Flooding is a risk which must be considered when one is purchasing a property. Of the 28 million homes in the UK, most of them have a very remote risk of being flooded in any one year.

Shrewsbury Chartered Surveyors, Nock Deighton, have been involved in advising home owners and prospective purchasers on flood alleviation schemes. These relate to individual schemes for mitigating damage to property. 

The Environment Agency, following the floods in 2000, have completed two major flood alleviation schemes at Frankwell and Coeham Head.

Head of Professional Services at Nock Deighton, David Perrin, states: “Surprisingly flood risk surveys are not currently part of normal searches. We always enquire of vendors whether there have been any incidents of flooding to properties in the past, or any related insurance claims. This is necessary because there could be issues about the property’s insurability for flood risk, which could impact on their ability to raise a mortgage and hence the value of the property.”

Since 2000, Nock Deighton have advised clients on flood-resistant installations such as demountable barriers, purpose-made door openings and tanking of internal floors and basement walls to prevent water ingress.

For properties which have previously been flooded, particularly after the floods in 1998 and 2000, Nock Deighton Surveyors have also assisted clients in providing flood-resilient construction as part of the repair process following these floods. This has included replacing floors to incorporate robust damp proof membranes, incorporating sump pumps, raising services and installing back-flow valves on drainage installations.

For buildings at risk, it is also important to minimize the use of timber and chipboard at ground level and generally use water-resistant finishes.

Nock Deighton are Chartered Surveyors with experience in providing flood-related services and advice. They are able to organize and provide advice on flood risk for particular properties and suggesting suitable solutions including supervising any required works and managing insurance claims.

2010 -2011

2010 has been another encouraging year for the property market. House prices have continued to improve fuelled by increased confidence from buyers and sellers alike.

Our market research indicates that local prices have been buoyant compared to the national average as Shropshire and surrounding areas continues to be a particularly sought after and desirable location to live.

I would preach caution over taking any negative press regarding the industry at face value. My view is that such headlines will be offset by a very different message early in the New Year. 

Once the government cuts, and changes to VAT have taken time to settle, I think house prices will continue to recover at a speed above the national rate of inflation.

The simple facts of the matter in the Shropshire area are that there is a shortage of housing supply and a substantial pent up demand. Once we see lenders offering more competitive mortgage products, there is considerable potential for a local mini boom.

Looking forward, I see 2011 as another challenging year that will reward those who take a practical and pragmatic approach to moving home. Shropshire is a superb place to live and there will always be a buyer there for you.

Homebuyers face bills for thousands

Homebuyers are facing bills for thousands of pounds by failing to have a sufficient survey of their property before purchase, according to new research from the Royal Institute of Chartered Surveyors.

A quarter of all homebuyers who only had a mortgage valuation report had to make unplanned building works to their property after purchase.

Despite their importance, many buyers remain confused about surveys.  To quote Mr Justice Henry in the Judgement of Lloyd v Butler 1990 a survey is “an inspection by someone with a knowledgeable eye, experienced in practice, who knows where to look”.  When purchasing a residential property there are 2 kinds of survey to consider: Building Surveys and Homebuyers Surveys.

David Perrin, Director and Head of Professional Services at Nock Deighton, describes a Building Survey as suitable for all residential properties, providing a full picture of their construction and condition. It is usually tailored to the homebuyer’s individual requirements and includes extensive technical information on construction and materials as well as details of the whole range of defects. 

By contrast, a Homebuyer’s Survey is in a standard format and designed specifically as an economy service. It therefore differs materially from a Building Survey in that it is intended only for particular types of home, houses, bungalows and flats, which are conventional in type and construction and in apparently reasonable condition. It focuses on essentials: defects and problems which are urgent or significant and thus have an effect on the value of the property – although it also includes much other valuable information.

David Perrin asks “why take the risk?” For further advice contact Nock Deighton Professional Services on 01743 241251.

Another happy customer. :-)

Dear Mike and Annette,

I cannot thank you both enough for the excellent job you have done for us.  First viewers and you sell it - you can't ask for much better service than that can you!! 

Thank you, thank you, thank you.

Kind regards

Joanna W

Breaking News

NFoPP-backed Property Standards Board is dissolved


The Property Standards Board, set up to establish mandatory licensing of all estate and letting agents, and with the backing of NAEA and ARLA, has been dissolved.

Five months after the general election, it has had to acknowledge that licensing is no longer on the political agenda.

The board was a cross-industry initiative, set up jointly by RICS and NFoPP in response to Sir Brian Carsberg’s Review of Residential Property published in June 2008.

 

The Property Standards Board proposals revolved around a requirement that it wanted the Government to enforce, that all sales and letting agents should have to be licensed.

The board proposed setting up a single regulatory vehicle for the residential property industry, which would have run in tandem with a register of private landlords – another initiative discarded by the new Government.

The proposed licensing body would have ‘over-arched’ the existing bodies, including NAEA, ARLA and RICS. These would have been effectively responsible for carrying out the licensing. Minimum standards for a licence to be granted were proposed, with an appeals system if licences were refused or withdrawn.

The Property Standards Board itself would have overseen the compilation and maintenance of the directory of all sales and lettings agents.

The board did get as far as producing a consumers’ charter, which is still available.

The board had members on it representing the NAEA, ARLA, NFoPP, RICS, Trading Standards and Solicitors Regulation Authority. Also on it was Bill McClintock, of the Property Ombudsman Scheme, who has also been trying to get his own Register of Property Agents off the ground.

ARLA was represented by Lucy Morton, 2009 President, and the NAEA by current President Mike Jones. Solicitor Liz Richards represented NFoPP as a whole.

The Property Standards Board was chaired by Baroness Hayter of Kentish Town, a former chief executive of the European Labour Party. She admitted that until chairing the board, she had not realised that estate agents act for the seller, not buyer.

This week, she said: “I am naturally extremely disappointed that we were unable to bring the residential property sector together to raise standards and improve consumer protection throughout this vitally important sector, which involves one of the most important transactions in people’s lives – the securing of a home.

Is Your Property Empty This Winter?

With winter almost upon us I thought I would mention taking some precautions against frost damage.

If you have a property that is currently vacant, you may already have made the necessary arrangements.  

I would strongly recommend that whilst the property is empty, it remains heated in order to minimise the chances of a burst water pipe.

If for whatever reason the heating is not left on, please be sure to drain down whatever water systems are on site.

As I am sure you are aware, Insurers must be made aware that a property is vacant. If the first they hear of this is via a claim, it is unlikely you will be covered. 

In my experience, some styles of property are more vulnerable than others. If you have any questions or queries, please do not hesitate to contact me.

Sincerely

MN

House Price Forecast; October 2010

Lloyds banking groups ‘Halifax house price index’ has announced a fall in UK house prices for the 3^rd successive month. http://www.lloydsbankinggroup.com/media1/research/halifax_hpi.asp

I think we will see more of these headlines over the coming months, but would preach caution over taking such statements at face value. My view is that such headlines will be offset by a different message early in the New Year.  

Once the government cuts, and changes to VAT have taken time to settle, I think house prices will recover quite quickly.

There is still a huge pent up demand for properties in the UK. As soon as more competitive mortgage products are introduced to the market, I think we will see steady growth and a rapid increase in turnover.

MN

Severn Brow, Oldbury

Nock Deighton, Bridgnorth’s premier firm of estate agents are pleased to announce that a buyer has been found for Severn Brow.

http://www.nockdeighton.co.uk/propertyDetails.php?pid=235665

Located in the particularly sought after village of Oldbury, Severn Brow is  a magnificent Victorian period country house in a stunning elevated location enjoying spectacular aspect down the Severn Valley in approximately 4 acres.

We recommend that all unsuccessful applicants register on our reserve interest list.

To Auction Or Not To Auction!?

The advantages of an auction sale are:

a. Certainty

b. Speed

c. Competition for the property, ensuring the maximum possible price in the market is obtained.

The disadvantages are:

a. The availability of mortgages and the speed in processing application means we will need a minimum 6-week lead in to the auction date.

b. A number of buyers may be deterred by the cost of surveys and legal searches. This can be overcome on the survey side by commissioning a vendor’s survey which is then specifically made available to any potential purchaser and re-addressed to the ultimately successful purchaser. This means that the purchaser has the normal redress against the surveyor in case of error. The search process can be speeded up by having all the documents which would previously have been in a Home Information Pack available in both our sales office and your solicitor’s offices

Market Trends

Quite a testing time of things in the housing market.

We have seen some interesting movements and trends in recent weeks!

Confidence is perhaps the most important factor in any market, be that for better or worse. Currently we are experiencing 'confidence' that the government will execute their proposed plan of cuts. This may not effect people directly in the short term, but will undoubtedly have an impact on all of us moving forward. If your prospective buyer is in the public sector, they may perhaps understandably hold off their purchase for a month or two.

Currently we are seeing a rush of houses coming to the market (Supply). This is a pretty regular seasonal trend, but buyers appear to be a little harder to come by (Demand). Perhaps this fall in demand is driven by the short term lack of confidence in employment prospects.

There has been much talk of a 'Double Dip' and in some respects, I can see it coming. That said, I am sure it will resemble a relatively minor hic up compared to the post Lehmans crash of 2008.

My honest thoughts; I think we are in for a slow winter but as the impact of the proposed cuts begin to settle down people will conclude with confidence that the earth is still turning, the sun will still rise in the morning, life goes on and so will the housing market. :-)

MN