New itunes app to help you find your perfect home

At Intercounty we have always been proud of the fact we are not just like any other estate agent. We work hard to make sure that we always give exceptional service to our clients. As part of our companies growth we have identified a need for our clients to have up-to-date information on the move, so in response we have developed our very own app just for you.

We are proud to announce the launch of our new iphone app available now to download free from itunes. Never has it been so simple to find that ideal property. Simply choose to either buy or rent, then select a minimum and maximum price, find your location, type of property and the amount of bedrooms you need. Our app will do the rest, delivering you real-time information within seconds, a perfect app for those busy house hunters. We're on the move to help you move...

• Free
• Category: Lifestyle
• Released: 12 November 2010
• Version: 1.0
• 1.0
• 0.8 MB
• Language: English
• Developer: Technicweb Ltd
• © Intercounty

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Banks need to improve buy-to-let deals

I focused on rental prices soaring this week in my blog 'Record high rental prices give landlords reason to celebrate'. However buying a buy-to-let property has become increasingly difficult as banks still haven't improved their buy-to-let mortgages, which is frustrating for both landlords and tenants as demand out strips supply. 16,000 new applicants registered for rental accommodation in October alone.

Landlord Assist, the nationwide tenant eviction and rent recovery firm, believes the shortage of rental properties can only be addressed if banks ease their lending restrictions and improve their buy-to-let deals.

Over the past year the buy-to-let sector has been characterised by a shortage of properties as increasing numbers of people have been forced into rented accommodation due to an inability to get on to the property ladder.

Graham Kinnear, from Landlord Assist, says: “This year has been a year of landlord consolidation. A lack of finance available on the market has meant landlords have been unable to expand their portfolios at a time which ought to have suited investment.

“Landlords have been happy to bide their time for better rates and have focused their attentions on getting their existing stock performing to ensure they are as resilient as possible for potential interest rate increases.

“The buy-to-let sector can play a pivotal role in addressing the shortage of quality housing. However, only when lending restrictions are lifted can we expect to see the supply and demand of rental properties balance itself out.”

But Stephen Parry, commercial director of Landlord Assist, expects the level of demand for rental properties to continue throughout 2011.

He says: “Many would-be first-time buyers have opted for rented accommodation due to the lack of availability of mortgage funding and instability of the market.

“At the same time tenants already in rented properties are extending their tenancy agreements and are renting for longer periods. We expect these factors to continue to define the market during 2011.”

Remortgages pick up pace as high street lenders offer cheaper rates of SVR

Over the past year and a half we have seen remortgage applications drop steadily. However last month activity picked up pace - as 25% of all mortgage applications were for remortgages.

So why the sudden swing - there is no doubt that consumer confidence has played a key role in this, as growing concerns over the uncertainty of Standard Variable Rate mortgages has made consumers shift over to new policies with interest rates lower than SVR being offered by a number of high street lenders.

Record high rental prices give landlords reason to celebrate

Landlords have reason to celebrate this month, as tenant arrears drop and rental prices go up for the ninth consecutive month. In October, UK rents rose by 0.4% to £691 per month. Annual inflation in the average UK rent has grown by 4.5%, which means that if this rental growth continues at the same pace, the average rent will hit £722 pcm by this time next year.

The average yield remained stable at 4.9% in October, as steady rent rises were matched by modest growth in the prices of rental properties.

Rental prices have gradually been increasing on a monthly basis, and the average rental property now stands just a few pounds shy of £700 pcm. With the run up to Christmas we are likely to see a slight slowing in the increase, but a strong underlying growth will remain, as key market dynamics are geared towards further rises in the rental market.

Commission continues to fall for mortgage brokers

It's been a hard year for mortgage brokers and it seems as though 2011 is going to be even tougher. A recent data survey from borro found that 57% of mortgage brokers feel commission has fallen in the last 12 months.

At this month’s Mortgage Business Expo a survey of 454 mortgage brokers found nearly 40% of them found high LTVs the biggest hurdle for their clients in 2010.

Six in 10 respondents also thought the market would not improve next year, and was expected to stay stagnant.

The survey found that 21% of brokers say a client’s ability to prove their income was a big obstacle in 2010.

Only 13% felt that high house prices had been the biggest challenge of the past year.

In the short-term it is difficult to predict any positive change for mortgage brokers, as the biggest hurdle is for house buyers is the large deposit, proof of income and the recent wave of government cuts has left consumer confidence at an all time low.

However Paul Brett, business development director at borro did announce some good news: “We’ve identified a gap in the market for a short-term finance solution for brokers to offer to clients that provides the introducing broker excellent commission rates.”

How to get on the property ladder if your a first time buyer

Buying a home will probably be the biggest financial decision you will make in your lifetime, and it's not something that should be rushed. The trick is to budget, budget, budget - and not buy beyond your means. If you are a first time buyer you will need to set a firm limit on what you can afford, and try not to exceed this. And this shouldn't just cover the cost of the property and the home buying process, but stretch to cover any potential refurbishment work necessary - and even the cost of more cosmetic changes, such as redecoration or new furnishings to suit your new home.

For first-time buyers, finding a 25% deposit is the biggest stumbling block in buying a home - unless they ask the 'bank of Mum and Dad' which is also reportedly drying up.

The key is really financial discipline. Setting aside a certain amount of monthly paychecks into a savings account will soon add up - and ring fencing any potential bonuses from work will give savings a boost to a deposit fund. Another way for you to save would be to stay with parents longer, cutting down on monthly bills like rent and council tax would allow wannabe buyers to set aside more cash every month.

Rental Market hits record high

Our October buy-to-let Intercounty index shows that rentals are reaching record highs:

• Rents reached a record high of £689 per month after eight consecutive months of rises - now 3.1% higher than the same time last year.

• London rents rise by 2% to reach all-time high, a driving force behind UK rental inflation in 2010.

• Tenant arrears fell in September, but remain high with 10% of all rental arrears.

•The average yield remained stable at 4.9% in September, as rising rents were matched by modest house price growth in the past three months.

Landlords have seen tenant demand continue to hit new heights. This really has turned the buy-to-let market into a landlord's market.

Abbey looks to support B2L market

Abbey for Intermediaries is looking at entering the buy-to-let market in 2011 with products aimed at non-professional landlords.

Abbey currently has no products in buy-to-let sector but with the market growing over the last year, it says it is a market it’s keen to support next year.

Alan Mathewson, managing director at Abbey for Intermediaries, says: “What we’re looking at is the non-professional landlord, the type of landlord that maybe has one to three houses where they’ve not been able to sell their own property and ended up doing a buy-to-let, or the landlord that has inherited a house from their family.No decision has been made but that’s something we want to look at to support the market.”

In the current market renting a property is the only real option for many individuals unable to obtain mortgage finance, with a greatly diminished supply of mortgage products aimed at landlords, this is potentially good news for the buy-to-let sector.

Specialist providers such as CHL, Paragon, and BM Solutions are currently almost entirely absent from the market, while mainstream lenders are treating buy-to-let lending with caution. As a result demand is building in these products, and this may be an area where prudent lenders, with an appetite to support the sector, can increase their profit margins.

Resource:Mortgage Strategy

Landlords adapt well to new capital gains tax

Despite recent increases to CGT, landlords sentiment remains positive. A recent landlord survey showed the following results:


34% of landlords saw the current market as attractive for investment - property still offers better capital returns than other investments – a drop of 7% since the last quarter.

Landlords with 3 properties made capital gains of £152,219 and face CGT bill of £39,793 – an increase of £11,369 from the previous tax regime (at higher rate tax paid over two years).

Landlords with just one property have made average capital gains of £75,111. If they sold their properties now, the average single property landlord would face a tax bill of £18,203 – an increase of £5,201 compared to before the budget.

Landlords with one property made capital gains of £75,111 and face CGT bill of £18,203 - an increase of £5,201 compared to before the budget.

The increased CGT hit many property investors' confidence. However the hike wasn't as steep as first feared, and we are already seeing landlords adapt their disposal strategies for their portfolios, planning to spread sales over several tax years to mitigate their exposure to the higher rate.

Housing market becomes more fragile as lending worsens

There is no doubt that the housing market is fragile and with credit conditions worsening last month, it is no surprise that house prices are sluggish. Lenders have made mortgages more difficult to secure for those without large sums of cash to pay up-front by reducing loan-to-value in September. Particularly effecting first time buyers, and the 'Bank of Mum and Dad' a source of funding, is reportedly also drying up.

At the moment we are all waiting with baited breath to see the effects of further austerity measures in government's spending review, and the effect of further policy measures such as another round of quantitative easing. We will be keeping a close eye on the housing market over the next couple of months, but until then we would not expect to see major swings in either direction.

However on a more positive note, at Intercounty we experienced a good sales month in October. We strongly believe that with careful planning and our expertise in the housing industry we can expect to continue to do so.

Mortgage rescue scheme must be kept

Largely due to the previous governments mortgage rescue scheme, possessions have been kept to a minimum by a combination of lender forbearance, sound property management, financial advice and support from the government. Now is not the time for the coalition government to axe support for borrowers in difficulty.

It is essential that the coalition retain this rescue scheme or we will have to face more economic and social problems such as the implications of tackling homelessness and re-housing evicted borrowers, already under pressure from a slashed housing budget.

If the scheme is kept it will mean that borrowers will be put under less pressure we will see mortgage possessions kept to a minimum resulting in a healthy housing market.

Home owners face more repossessions

With harsh government cuts across the public sector predicted over the next few years, we are likely to see an increase in mortgage arrears and possessions across the UK. It is predicted that more public sector employees, especially in the North East, who have a greater dependence on public sector jobs will be disproportionally hit by the cuts - and their knock on effects on the owner occupation.

Although the government hopes that private sector growth will be able to counterbalance the losses, it's unrealistic to expect it to absorb such a large percentage of the workforce. It is inevitable that thousands of homeowners will come under intense financial pressure over the next four years. Which will undoubtedly push up mortgage arrears and possessions. Until now, repossessions have been lower than previously anticipated, with 23% less than expected in the first part of the year compared to 2009. Interest rates currently at record lows will only increase over the medium-term and this will heap additional pressure on borrowers trying to keep up with their mortgage payments. The effects will be widespread, but will vary across the country.

Spending cuts make tough year ahead for agents

Since the announcement of spending cuts in the in the public sector, public confidence in the housing sector has reached an all time low.

We are likely to experience a cooling in buyer demand, transactions flattening and a modest decline in house prices for the foreseeable future.

Over the past few months lenders have continued to tighten their credit scoring criteria even further in a market where prices are falling and jobs are more uncertain. Public sector employment, especially, could lead to a rise in the number experiencing difficulties in paying their mortgage and a lack of attractive funding will continue to hamper the remortgage market which according to CML is already at a 10 year low.

For many home buyers a large deposit will still be required and for most this isn't a reality with current property prices. The letting market will remain the only option for many buyers but, with the diminishing supply of mortgage products aimed at landlords, the number of available rental properties could well fall as demand takes up any slack, pushing rents up further. Good news for landlords and letting agents - not such great news for many tenants.

Ray Hugill, Executive director of Templeton LPA, commented: 'Today's spending cuts will have widespread effects on the private rental sector. With nearly half a million public sector jobs axed in the next four years, we are going to see a surge in the number of tenants unable to meet their monthly rents. Rents are already at a record high, and with a new wave of redundancies and job losses likely to hit thousands of households in rented accommodation, tenant finances will be placed under an even greater strain. And as many tenants fall behind in their rent, we are likely to see landlord arrears rise over the medium-term. In this environment, it is even more vital that landlords closely monitor their current tenants payment performance - not to mention vet prospective tenants even more rigorously.'

There is no doubt that 2012 is going to be a tough year, however those agents with the foresight to plan ahead, carefully control costs and concentrate hard on diversifying and maximising all available income streams, will come out intact.

Location, Location, Location....

Location, location, location is the somewhat overused maxim applied by many as a rule of thumb when selecting a property. However, a closer look reveals that a compromise in this principle can produce significant benefits for tenants in the local area.

Clearly, most tenants’ idea of a dream home is one in perfect condition, with a beautiful garden, massive sunny accommodation, off street parking, and found in the best street in the area – preferably a quiet, leafy, cul-de-sac. And of course, the rent must be low!

Sadly this idyllic combination does not exist, because if the first five criteria are satisfied, then the rent is likely to be astronomical, as everyone tends to want these things as well! So budgetary constraints typically force tenants to accept a degree of compromise. For many, this will mean asking the children to share a bedroom, making do with a patio rather than a garden, or parking the car in the street. Last on many people’s list is renting on a busy road!

Yet consider the advantages. Firstly, the rent on properties on a busy road is usually considerably cheaper than similar properties in a quiet street. This means that you can get far more property for your rent. It could well mean that you will not have to compromise on those very things that contribute to an attractive property lifestyle. You might actually gain attributes such as a playroom for the children, a garage for the car, or a larger than expected garden.
Most people who live on a main road tell us that they no longer notice it, and that it is a very small price to pay for a substantially better property.

Why choose Intercounty?

It seems amazing to us that almost anyone can open up an estate agency and commence trading without any training, qualifications, proof of minimum standards, or certificate of competency.

The sale of your property is far too important to entrust to just anybody. Those who claim to work on your behalf may simply be out to claim the commission from a lack lustre sale which might have happened without their involvement, where there is no accountability, commitment or care. Their objective might only be to secure a sale at any price, as long as they can claim a commission. One has to ask the question – “Will they genuinely act in my best interests, and secure a good price from a well-qualified buyer?” Will they make your move as stress-free as possible, or add to the anxiety of moving?

There are various credentials you should check when selecting the right agent to sell your home, such as membership of the National Association of Estate Agents. Membership of the NAEA is voluntary and demonstrates that the member agent is happy to be bound by a stringent code of conduct and will adhere to the highest ethical standards.

We are proud of our membership of the NAEA and believe it is an indication of the type of service excellence you can expect to receive should you decide to buy or sell through members such as ourselves. After all, when the time comes to sell there is much at stake, so you owe it to yourself to choose wisely.

The reluctant landlord returns to the rental market

The reluctant landlord has returned to the rental market, according to the Association of Residential Letting Agents. Which is great news for the rental market as demand out strips supply at the moment.

ARLA’s research revealed that 34% of member offices In Q3 2010 have seen an increase in the number of rental properties coming onto market because they can’t be sold. This figure was an increase from 19% in Q2 of this year.

There was variation across the UK in the number of agents reporting this trend, with 58% of agents in the North East of England reporting an increase in reluctant landlords, compared to 15% in central London.

The number of reluctant landlords peaked during the recession when at the beginning of 2009, some 94% of agents surveyed reported an increase of property coming onto the rental market because it could not be sold.

Ian Potter, operations manager at ARLA, says: “The rise of the reluctant landlord seems to reflect wider market uncertainty and instability. There is a dearth in available property either to rent or buy, yet people are holding back from selling, perhaps strategically, to secure the best price; or more likely because they simply can’t find a suitable buyer.

“While we welcome new landlords to the market, this trend is not without risks. Letting a property can be full of potential hazards, especially for inexperienced landlords – from material issues, such as a tenant mistreating a property, to financial problems, such as landlord inability to meet mortgage payments. A qualified, licensed agent can help guide both landlord and tenant through the process, to ensure neither party is left out of pocket.”

At Intercounty we can offer you secure and professional advice, vetting tenants and drawing up all legal agreements to protect you against any of the potential pit falls of renting out your home.

Local experts selling local property Outstanding customer service One point of contact throughout Available 7 days a week Sales Support - helping you through your move Award winning estate agency brand Extensive website marketing National network of associated offices Member of professional bodies Residential lettings department

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UK mortgage affordability no worse than other countries

In a recent study by Capital Economics they found that mortgage affordability is in-line with other countries. It's analysis spanned over nine major western economies, Australia, Denmark, France, Ireland, Netherlands, Spain, Sweden, the USA and the UK.

The average family with a repayment mortgage in these countries over the past 40 years has spent 48% of its take-home pay on their mortgage.

Comparing these figures internationally the study has shown that the average mortgage costs in the UK have been 50% of our take-home pay over the last 40 years. Spain is still the most affordable at 39% and Sweden is the most expensive at 56%

Paul Diggle, economist and author of the report says one might expect the high population density and apparent structural undersupply of housing in the UK to mean that people in the UK have spent a higher proportion of their earnings on mortgages, but its research contradicts this.

He says: “Our analysis shows that over the past 40 years, long-run average UK mortgage affordability is unremarkable in an international context. To our minds, this casts doubt on the popular view that a chronic undersupply of homes in the UK supports high prices.”

Out of the nine countries researched, between 1970-2010 Sweden was the most expensive in terms of affordability, followed by the Netherlands, France, Denmark, the UK, USA, Australia, Ireland and Spain.

Mortgage affordability in the UK is currently at only 44% of take-home pay, compared with the Netherlands at 64% and the USA at 25%.

The research found that mortgage interest rates are the primary driver of a country’s level of mortgage affordability. Although one factor not taken into consideration in this study is the difference in affordability measures over the past 40 years in the level of house prices in relation to earnings.