The total lending rose by £0.4 billion – although this was less that the previous 6 months average of £0.9 billion. This was however the end of quite a turbulent year.

Within the overall lending to individuals, that secured on dwellings/property also rose, but by £0.7 billion and this was slightly higher than the previous 6 month average of £0.6 billion. The 3 month annualised rate increase was also up to 0.9% and 12 month figure up to 0.8%.

The gross lending secured on dwellings was therefore reported at £13.0 billion with repayments at £11.4 billion roughly in line with the previous 6 month average.

The number of actual loans approved was pretty much unchanged at 52,939 and those loans for remortgages increased slightly to 32,422.

Paul Shamplina, Founder of Landlord Action, the leading legal services company helping landlords with problem tenants, comments on planned Government changes to the current deposit protection law.

Mr Shamplina comments “These are very welcome changes to the tenancy deposit legislation allowing landlords and agents to file the deposit within 30 days of receipt, compared to the current 14 days.  Still at Landlord Action, we experience many landlords that do not know or understand the deposit scheme when instructing us to carry out an eviction of their bad tenant, but hopefully this will go some way to clarifying this to landlords.

“I am also in favour of the abolition of the mandatory three month penalty to landlords if the deposit is not correctly registered. We have seen a huge rise in the number of tenants making applications to the court in an attempt to gain three times the deposit with one group of ‘scam students’ making numerous applications against unsuspecting landlords who did know about the schemes. Giving power to the courts to hand out discretionary penalties from one to three times the deposit makes the system much fairer.

“Making landlords pay the deposit into the scheme prior to serving a S21 notice and before going to court is also a good thing as this protects both parties.  My only criticism is that when the courts do make a possession order they do not always put a clause in to state that the deposit should be released to the landlord, which makes it hard for landlords to retrieve this from the scheme and can leave landlords out of pocket due to arrears and legal fees.”

England & Wales house prices down

The Land Registry House Price Index, seen the one of the most accurate covering all purchases whether via credit or cash, has again shown that in December London continues to buck the trend.

The overall index was totally flat with a 0% change over the month, keeping house prices at an average of £160,384. This does however represent a fall of -1.3% over the whole year.

However the data for London shows a positive monthly change of 0.8%, which means that the annual change now stands at 2.8% and the average price is £345,298.

The number of property transactions has decreased over the last year. In July to October 2010, there was an average of 61,274 sales per month. In the same months this year, the figure was 60,764 sales per month.

Regional & Type of House differences

Not surprisingly the movement in house prices vary around the country and through the variety of housing stock.

UK wide the -1.3% fall was spread with semi-detached house experiencing the smallest fall in value at -0.8%, whereas detached and terraced houses both saw a fall of -1.7%.

Regionally, excluding London, the East and South East where the best performing with only a small -0.2% fall and average price of £177,899 and £206,522 respectively.

The North East was be far the worst affected with a whopping -7.1% fall and an average house price of £99,464.

The North West was second to bottom with a -3.4% fall and average price of £113,204 – however in December it experienced the largest increase of 1.5%, beating even London.

Loans for house purchase was up 4% to 47,000 against October – which represented a 5% increase in value.

Year on Year this represented a 3% rise compared to November 2010 – again representing a 5% rise in value. The total value of the loans was £6.9 billion.

Remortgaging had a similar increase with 31,200 loans, and increase of 6% over the month and 2% over the year. The total value of those loans was £4 billion.

First Time Buyers

With the Bank of England interest rates remaining at their record lows, first time buyers continued to see the proportion of their income accounted for by mortgage payments decline – now 12.2% in November compared to 13% last year and 12.3% in October.

With the overall loans for house purchase, first time buyers took 17,300 loans, worth £2.1 billion.

Mortgage Preferences

Fixed rate mortgages increased in popularity again and now at their highest in more than two years – 65% of all borrowers took out a fixed rate. This might have been spurred by the chances of a increase in interest rates in 2012 increasing.

Repayment mortgages continue to be the preference for the vast majority – 98% of first time buyers (up from 97%), 83% of movers (up from 82%) and 79% of remortgagers (up from 77%).

CML director general Paul Smee commented:

A rise in mortgage lending towards the end of 2011 is a welcome indicator for the industry considering confidence has been weak due to fragile economies both at home and in the Eurozone. We should expect a further increase in first-time buyer activity over the next few months as they push through their purchases to take advantage of the stamp duty concession before it ends in March.

Property owners have to comply with a range of regulations to ensure they are operating within the law. Normally these are governed by legally binding documents, such as rental agreements with tenants, which set out rights of access to a property, what is included in the property contract – an inventory is normally provided – and responsibilities for key areas, such as repairs and renewals.

Property Maintenance

Property maintenance differs from one rental agreement to the next, but one thing that does not change is the fact that maintenance at any level has to be funded – and often this is the landlord’s responsibility as the owner of the property. This may not mean replacing light bulbs, but it does mean, for example, ensuring that heating and ventilation systems are fully functioning and that the building is protected in case of damage from fire or water. External maintenance, including landscaping, is nearly always the responsibility of the owner, although grass cutting and other routine tasks may well be included in a rental agreement as being one of the tenant’s duties.

Provision for Funding

It is vital to make provision for funding maintenance and many shrewd landlords set aside a percentage of their income from renting property in preparation for that rainy day when a major intervention is needed – think winter months and burst pipes, for example. In fact, just as it makes sense to ensure a normal household budget sets aside sufficient funds for utility bills, food and general maintenance, so income from a rented property should be divided in such a way as to allow at least 10% to be assigned to maintenance costs.

Aside from the burst pipe scenario, properties need regular upkeep and older houses or apartments may well require external pointing or roof tile replacement at some point. Internally, boilers and central heating radiators need to be regularly checked, and doors and windows too so that draughts and leaks can be dealt with quickly before they become more serious problems. Equipment is also an issue for many property owners. If a washing machine, fridge, dishwasher and/or freezer are included in the tenancy agreement, then the upkeep or replacement is generally the landlord’s responsibility.

Don’t spend all your rental income!

It is all too easy to regard rental income as 100% profit – but that is a big, and often costly, mistake to make. Landlords who routinely spend all their income get caught out when something needs to be fixed or replaced, and badly so if this is a major item such as a central heating system. Instead, those who are aware of the pitfalls will often work with an umbrella company to protect themselves and their investment. The protection afforded means the property owner is confident of being fully compliant with the law in relation to the income earned, without having to undertake any of the paperwork directly. This saves time, which can then be spent on undertaking necessary repairs at the earliest possible stage, thereby saving money. Business expense savings allow landlords to make provision for the inevitable maintenance costs they will face at some point.

According to Rightmove, the early signs for 2012 shows an increase in search activity – up 27% on 2011 with 44 million property searches.

Rightmove see this partially due to pent up demand due to the continuing lack of mortgage funding. They also believe that Estate agents are marketing the lowest number of properties ever – just 1 new property per week per branch.

Asking prices – a mixed bag

Although only just into 2012, Rightmove has seen initial asking prices up by 1.4% in the first week – although still 0.8% lower than last months figures.

The average asking price is now set at £224,060 and represents a 0.4% increase since January 2011.

2012 – the winners and losers

Rightmove is attempting to forecast who it sees to be the winners and lowers to come in the next year:

· 2012 Winners: deposit-assisted first-time buyers, equity-blessed trader-uppers, savvy buy-to-let investors, some golden-oldies, and those selling properties ‘with a difference’

· 2012 Losers: trapped renters and sellers of ‘average’ homes unwilling or unable to offer a cut-price deal

Miles Shipside, director of Rightmove comments:

Old records are being shattered as search activity is up by a staggering 27% on this time last year. Potential buyers and sellers are looking more often and researching more thoroughly. In areas where there is a lot of property up for sale, buyers are looking hard for properties that tempt them with something really special in terms of value, potential, location or quality of finish. If it doesn’t shout ‘special’ then they are unlikely to overpay for the privilege of buying an average property in these mortgage-constrained times……

Here is part 2 of the article that we published last week.

Part 2: How and where to find private investors with money to invest [in You]

You can download a full JV Blueprint Report here

In response to my recent article on the JV structures for Property Investors, here is a resource of where to find your private or angel investors.

Before you rub shoulders with millionaires, it is essential to know what you are looking for exactly. If you are looking for a chalk and cheese JV, or a business partner, it is not just about finding people with money

I have a whole host of content on striking chalk and cheese JV’s on the Progressive Property Masterclass [DISC & VAKAd], for this article I am going to give you resources for finding cash and funding from ‘private investors.’

[You can also download a full JV Blueprint Report here]

All of the examples below are strategies successfully used by Progressive and our students: so don’t dismiss ANY of them – ladies: you’ll know what I mean

1. Family - many of the investors on our £10,000 per year VIP Property Millionaires Club have started with their close family, with great success. You can assess how resistant/open-minded they are and use on of the structures in my previous article to best sell your proposition and reduce the risk

2. Early Inheritance - a variation on the above: money that family will eventually die on and not see the benefits of, and money that you or close family will be paying IHT on can be used much more effectively to the equal benefit of the private investor and you, the investor

3. Business Angel Networks - in no other room will you rub shoulders with so many millionaires per square foot! LBA is our favoured one that we attend regularly, and there will be business angel investing events across the country. Get there, go regularly, apply as an investor and network away

4. Charity Balls - a great place to meet wealthy people. It will be clear where the money is, and as the drinks flow and egos rise, opportunities to build relationships increase

5. Flying Clubs - Mark and I fly the helicopter and are members of a flying club, and we get to spend time with many people who are also very well off indeed. If you don’t fly it doesn’t have to stop you. Get a Bomber Jacket, some stitch on wings and go and have a cup of tea: all flying clubs I’ve been to are very welcoming

6. Property Networking Events – Because private investors can’t get returns on cash in the bank, they’re out there actively looking for investments. Property is a favoured investment class of most businessmen and Entrepreneurs and so you’ll find many ‘undercover’ private investors at property networking events across the country

7. Progressive Property Events - We actively promote JV’s at all of our Events, and as a result we attract many private investors. In fact we have had many millionaires and 2 billionaires at our 1 day events – keep coming back and meet new JV partners

8. Dating Websites [!] - One of our students [who swears this was an upside benefit and NOT a strategy!] in her single days would subscribe to the high end dating sites, carefully select the profile of the people she would want to meet, making sure they met the criteria she was looking for

9. Lifestyle Management/Concierge - Using a specialist lifestyle management service will enable you to get into the best events, restaurants and social occasions where higher net worth individuals will frequent

10. Business Networking Events - Tap into the world of business and network with people who have profits to invest

11. Property Membership Sites - Sometimes you have to look right in front of you  Multiple JV’s are done on this site every week and one of the reasons we set up the site in the first place

12. Launches, Functions & Openings - Think where wealthy people may regularly go and be, and spend time there building contacts and relationships

So when you go out and get results in these areas let me know

Plus if you’ve had any results yourself in different areas: please do let us know.

Rob and Mark

P.S. [Don’t forget you can also download a full JV Blueprint Report here]

Over the last 18 months, Landlord Action, leaders in helping landlords with problem tenants, has been instructed on a growing number of squatting cases fuelled by the huge proportion of properties sitting empty across the UK.  After the broadcast of Channel 4’s ‘The Great British Property Scandal” highlighting the gravity of this problem, Paul Shamplina, founder of Landlord Action, supports the challenge to get more empty properties back into use as he believes this will reduce the number of squatters taking up residence in private properties, which has a detrimental effect on homeowners and landlords.

Paul comments “We have been instructed on a growing number of squatting cases by property owners, owner occupiers or professional landlords wanting us to deal with squatters that have broken into their property. These have been predominantly across London where there are a reported 70,000* empty properties, but we have seen cases across all major cities. I am staggered that there are so many empty properties in the UK with over 350,000* of these being empty for more than six months, and yet council waiting lists are so long and homelessness is up 17% this year.”

According to Channel 4, statistically 88%* of these empty properties are privately owned. Paul adds “Many people don’t have the funds to bring these properties back into use and it can cause huge aggravation, expense and stress for owners if squatters take up residence. In order to reduce this, councils need to do more by forming stronger links, in regards to this new campaign, with private landlords in order to tackle the empty homes crisis by creating viable alternatives so that fewer people need to squat.”

Aside from a few organised gangs who target properties to squat in, the main reason that properties are squatted is because the majority cannot afford rent. Paul adds “The idea of a campaign, such as this by Channel 4, to get empty homes back into use is a very good one and with the right Government backing and some long term funding put in place to assist the initial renovation costs which will be paid back through rents received by landlords, this has the potential to provide a great solution and bring council waiting lists down.”

Mr Shamplina also believes that if this new scheme were to be put in place, councils could call on enforcement officers to push harder and enter into dialogue with landlords by way of compulsory purchase orders to start getting empty properties put back into use.

Paul concludes “We whole heartedly support this campaign and would encourage others to do the same.”

Sign up at - http://www.channel4.com/programmes/the-great-british-property-scandal/articles/join-the-campaign/

The majority of landlords in the UK are aware of the importance of insurance and get themselves covered with a comprehensive policy. However, whilst landlords stay protected most tenants do not do the same, with very few investing in tenants insurance.

Although they do not own the property and are not responsibly for the actual bricks and mortar, the property does still contain all of their stuff and so insurance should be considered.

Don’t Bank on Landlords Insurance

The main reason tenants insurance should be considered is because it is highly unlikely that any of your belongings will be covered by the landlords insurance. The landlord will most likely have cover to protect the building, his own contents and the rent but not the contents of the tenants.

In the case of a fire, for example, the landlord would receive compensation on his property but without insurance the tenants would be left with nothing.

Protect your Deposit

Another good reason for tenants insurance is to protect yourself against accidental damage. When you move into a property, as a tenant, you will have to pay a deposit and in the event of damage caused, the landlord will take the deposit as compensation.

However, there are of course situations where the damage has not been the tenants fault and there can be disputes over the deposit. With tenants insurance you may be able to avoid this by claiming for the damage in the first place, getting the repairs done and then keep your full deposit at the end of your tenancy.

Room Mates

Finally, you don’t want to be accountable for a flat mates mistakes and if you leave for a weekend and they damage your belongings or the property, you want to make sure that you are covered against it and don’t need to fight them for the money.

Not many tenants realise the importance of insurance but if you want to make sure your belongings are protected against fire, damage or just idiotic flat mates then tenants insurance is a must!

You probably know of Simon Zutshi, he is the author of The Amazon No 1 best seller, Property Magic, and one of the top property speakers and mentors in the UK!

But Simon is fed up….sick and tired of people saying they have no money and how bad things are right now.

For this reason, Simon is going to share TWO different Strategies either of which you could use to start generating £5k + per month from property, within a few months, working part time. How would that be for you?

Simon usually only shares these cash generating strategies on his advanced property education programmes, however he is going to share them with you on a special NO COST webinar on Monday 23^rd January at 8pm.

To register to join me on this valuable webinar all you need to do is CLICK HERE NOW
and you will automatically be sent an email with all the webinar joining instructions.

CLICK HERE FOR DETAILS

We will be listening in at 8pm on Monday 23^rd January.

I hope you will join us.