IPIN Global - Investing in Property

House Price Sentiment On The Rise

Tue, 21 May 2013 00:00:00 GMT

Households believe that the price of their property rose in May at the fastest rate for nearly three years.

According to the Knight Frank/ Markit House Price Sentiment Index (HPSI), 13.5 per cent of homeowners think that the value of their home increased during the past month, the highest proportion since June 2010.

By contrast, only nine per cent of households thought that the value of their home had fallen during the same period. This gave May a HPSI reading of 52.2, compared to the 50.6 recorded in April.

Readings under 50 indicate falling house prices, while those over 50 show a rise. The further the figure from the 50 mark, the steeper the move.

Perhaps unsurprisingly the fastest rate of increase was recorded in London. Indeed this region saw the quickest uptick since the index began in February 2009.

However, although there were some regions differences about house price sentiment this month, households in all regions showed optimism that values will rise in the next 12 months.

“Optimism that the government’s Help to Buy scheme will have a positive impact on house price movements remains strong this month, the index suggests, especially among first-time buyers,” said Grainne Gilmore, head of UK residential research at Knight Frank.

“While the headline data suggests a sea-change in sentiment over the future movement of house prices across the country, the regional data still shows a more patchwork picture.”

Indeed, sentiment in the North East was the most pessimistic with a HPSI reading of just 46.6, Scotland saw 48.4 and the East Midlands did not fare much better with 48.6.

In contrast, London saw sentiment of 64.7 and the South East were similarly optimistic with 52.4.

Tim Moore, senior economist at Markit, said that the recent extension of the Funding for Lending scheme is expected to boost mortgage lending and generate a significant uptick over the next few months.

He added that better affordability is offsetting the weak labour market conditions to improve house price expectations.

Top 5 European Cities for Property Investment

Tue, 21 May 2013 00:00:00 GMT

For Europe, the past five years have been about survival and nothing more. However, according to PricewaterhouseCoopers (PwC), the dark days are nearly over and investors are finding their interest piqued once again. 2013 is the year for "refocusing, repositioning and renovating", with those that survived the financial crisis benefiting from the release of assets.

"Business confidence, profitability, and real estate investment intentions are noticeably better for 2013 (though not headcounts); only a small minority of respondents foresees conditions worsening," PwC explained. “There is nothing we can do about the Eurozone. But we can manage the risks and focus strategy around the medium-term trends – demographics, technology, and urbanisation."

While macro issues are still prevalent, there is certainly cause to look ahead. During the first quarter of 2012, there were high levels of direct real estate investment across Europe, both internationally and domestically, according to Jones Lang LaSalle. Strong transaction volumes placed London, Paris and Moscow all in the top ten global cities for volume. This accounted for around GBP 7.5 billion of total investment and over 50 per cent of transactions in these three cities were across borders.

So with things hotting up on the continent, just which European cities are the top five for property investment?

London

The capital of the UK is known around the world as a business and legal hub, attracting investors in their droves year after year. It has been well publicised that residential property prices are continuing to rise to record levels but the commercial sector is also posting a strong recovery. During Q1, office take-up stood at 2.5 million square feet - the highest quarterly total since the end of 2010 and a 28 per cent increase year-on-year. Jones Lang LaSalle expects activity will increase even further over the year.

Paris

In 2012 Knight Frank named Paris the best city for student accommodation investment and while residential property prices are falling, the city of love can't help but capture the imagination. Paris is also a popular tourist spot, so hotel and holiday rental investments make the French capital attractive for investors all year round. The country benefits from low mortgage rates and reasonable pricing too, making it a smart choice for the right kind of investment.

Munich

Germany is proving to be a hotspot for commercial real estate investment and Munich is leading the way. According to PwC, the city is top out of 27 cities across Europe, based on respondents expectations for performance in 2013. This is thanks to a strong microeconomic climate and resilient local property sector.

Joe Montgomery, chief executive of ULI Europe, said: “Almost five years since the start of the financial crisis, real estate investors remain cautious about capital deployment and the availability of debt. As a result, investors are focusing on the harder to find opportunities in blue-chip cities such as Munich, Berlin, London and Paris rather than turning to secondary locations in search of higher returns.”

Vienna

For those with their hearts set on residential investment, Vienna is good place to be. The Global Property Guide reported that the market is buoyant, even after nine years of almost continual house price rises.

The capital's residential property price index posted a 13.09 per cent rise in 2012, according to Oesterreichische Nationalbank. While on a quarterly basis values actually dropped by 0.65 per cent in Q4, the market remains stable. After all, this represents the first quarterly drop since Q2 2011 at a time when the rest of Europe has been floundering.

Rome

True, Italy has been going through a tough time of late and property prices in Rome are continuing to fall. However, weak real estate values have brought property more in line with the budgets of many investors, meaning now is the time to snap up that Roman apartment you always dreamed off. When property prices begin to rise again, real estate in the historic city will be a good asset to have in your back pocket. However, like most struggling European economies, Rome is a cash market, so ensure you have the funds in place to avoid battling with the banks for finance.

Is the US Property Crisis History?

Fri, 17 May 2013 00:00:00 GMT

The US property market was unable to escape the wrath of the global financial crisis, but figures now suggest the sector's woes could be over. CoreLogic is just one industry body to publish data showing growth and in March it revealed home prices nationwide, including distressed sales, increased 10.5 per cent on a year-over-year basis.

This represents the greatest year-over-year increase since March 2006 and is the 13th month of consecutive national increases. Month-on-month, prices increased by 1.9 per cent. This figure jumps to 2.4 per cent when excluding distressed sales. According to CoreLogic's Pending HPI, this rise is set to continue and over the year, April's figures are expected to show a 12 per cent increase, excluding distressed sales.

Dr Mark Fleming, chief economist for CoreLogic, said: "For the first time since March 2006, both the overall index and the index that excludes distressed sales are above ten per cent year over year. The pace of appreciation has been accelerating throughout 2012 and so far in 2013 leading into the home buying season."

The western region of the US has proven to be the most active area, but demand is rising across the country, both among investors and homebuyers. There is also a limited supply of stock, helping to drive up prices. Including distressed sales, Nevada, California, Arizona, Idaho and Oregon were the states to enjoy the highest levels of property appreciation. Values increased in the areas by 22.2 per cent, 17.2 per cent, 16.8 per cent, 14.5 per cent and 14.3 per cent respectively.

Only four states experienced home depreciation in March: Delaware (-3.7 per cent), Alabama (-3.1 per cent), Illinois (-1.8 per cent) and West Virginia (-0.3 per cent). This was driven by price drops in the distressed sale segment. Excluding distressed sales, no states experienced price depreciation, showing the growing strength of real estate in the US.

Could Aberdeen Supplant London as Hotel Hotspot?

Thu, 16 May 2013 00:00:00 GMT

London is known as a business and tourism hotspot in the UK, and has long enjoyed the buoyant hotel market that comes along with such a title. However, it could soon find itself supplanted by Aberdeen. New figures from PricewaterhouseCoopers (PwC) revealed that 2012 was a vintage year for hotels in the Scottish city and the sector is now challenging the British capital for pole position

Analysis of hotel performance across 24 UK cities found that Aberdeen outperformed most other locations. While average hotel occupancy fell by 1.5 per cent in the year to December 2012, the sector enjoyed a collective 6.4 per cent rise. The only city to outperform Aberdeen was Belfast, which saw a 13 per cent increase in occupancy. However, this has been attributed to the opening of the Titanic Belfast visitor experience and the MTV awards.

In Aberdeen, hotel sales generated from room revenues (room rev) increased by 14 per cent, while revenue per available room (RevPar) grew by more than 12 per cent. The cities' metrics are now considerably above the UK average for 2012 - 4.5 per cent and 1.4 per cent respectively. These figures are even higher than London, not to mention popular cities like Manchester, Birmingham and Edinburgh.

Bruce Collins, director in PwC's Aberdeen office, commented: "In most key metrics – such as daily rates, the percentage of rooms let and average revenues – Aberdeen outperformed most of the other UK cities. Even in London, with the advantage of the Olympics, hotel occupancy declined by close to two per cent year-on-year, although average room rates and revenues kept pace with inflation."

The performance of Aberdeen's hotel sector is thanks in part to its buoyant oil and gas industry, which ensures there is a steady stream of people heading to the city. However, Aberdeen also has pull in Scotland's tourism industry and has become a "strong visitor destination", according to Mr Collins. Combined with Aberdeens two well-respected higher education establishments, it is expected that the trend for growth will continue in the city.

This will occur across multiple segments, with conference and convention activity earmarked for expansion. Consequently, off-season demand will improve, ensuring the hotel sector thrives throughout the year.

Conversely, London could be set for tough times ahead. Not only is the UK's spate of bad weather putting many holidaymakers off British destinations, but the economic climate is creating barriers for the capital's hoteliers. While the PwC forecasts suggests international tour operators have put the city back on their programmes - it was left out last year amid fears of overcrowding from the Olympics - they expect occupancy rates to continue their decline. Average revenues and RevPar will also take a hit.

This is partly due to saturation in London - there has been a 6.5 per cent increase in the number of hotel rooms in the capital in 2012, equating to an additional 7,700 rooms. A further 4,600 rooms are set to open this year, reducing demand for existing hotels and affecting revenues.

Luckily for Aberdeen, this isn't the case. "There is no substantial pipeline of new rooms to increase competition and shrink margins in 2013 across Scotland, so there is every hope that we will see steady growth in this sector across all three cities," Mr Collins explained. Aberdeen is certainly set to continue its ascent, capturing the corporate market and hopefully a greater number of leisure visitors. However, with Glasgow set to be the site of the 2014 Commonwealth Games, demand could potentially shift.

Only time will tell if the oil and gas capital will be able to truly give London a run for its money. Nevertheless, it is important not to underestimate the power of the capital. Despite profit declines in February for the second month in a row, demand levels started to increase. The latest HotStats survey showed occupancy increased by 1.4 percentage points in the second month of the year to 75.9 per cent. Total revenue per available room also increased by 0.8 per cent. This is underpinned by a 2.6 per cent increase in non-rooms departmental revenue performance.

Is There a New Breed of Buy-to-Let Investors?

Thu, 16 May 2013 00:00:00 GMT

It looks like there is a new breed of buy-to-let investor entering the market. Tim King, from London-based estate agency Felicity J. Lord, told the Daily Mail that the sector is no longer populated exclusively by the wealthy looking for high yield investments to boost their portfolio. "Buy-to-let investors were once wealthy investors using cheap credit," he said. "Now, they’re people in their 50s who have lost trust in banks and pension schemes and are looking for a decent return on their money."

It's not hard to see why buy-to-let has become a popular property investment option either, with an entire generation of renters emerging over recent years, unable to get a foot on the property ladder due to lending restrictions and high prices. Finding tenants has never been easier for landlords and it is only natural more people want to get a piece of the action, especially as traditional liquid assets fail to perform.

In sharp contrast, the buy-to-let sector is a veritable feast of opportunities. Figures from Countrywide have recently shown that average rents are rising in England, Scotland and Wales and have been for six consecutive months. Rents stood at an average of GBP 842 per month in April - a rise of 0.8 per cent year-on-year. Yields now stand at around 6.2 per cent across the country, although in London this percentage is generally lower due to high property prices.

It looks like lending is also becoming easier, with figures from the Council of Mortgage Lenders (CML) showing that gross mortgage lending in the buy-to-let sector totalled GBP 4.2 billion across 33,500 mortgages in Q1. This is significantly up from GBP 3.7 billion recorded in Q1 2012. While remortgaging accounts for a large proportion of this figure, CML is confident that the market is growing. Loan performance is also improving, making buy-to-let all the more attractive for middle-aged buyers looking for alternative income. CML director general Paul Smee said: "The buy-to-let mortgage market is performing well, against a backdrop of robust landlord - and tenant - demand for good quality rental property."

European Real Estate Investment Refuses to Lay Down

Wed, 15 May 2013 00:00:00 GMT

Europe has took a bloody beating at the hands of the financial crisis, many doubt it will ever be the same as it was before. Real estate investment in the continent has continually refused to roll over and play dead.

The sector ended 2012 with somewhat of a flurry and this continued into Q1 when investment volume increased by 28% year on year according to the latest figures from Jones Lang la Salle

According to the report France, Germany and the UK continue to dominate Europe and Lonodon, Paris and Moscow even ranked inside the global top 10 on investment volume -- the three attracted USD 11.5 billion out of the total USD 40 billion. Over 50% of transactions in these three cities was cross-border, as overseas investors sought to gain exposure in the largest European markets.

Richard Bloxam, Head of European Capital Markets at Jones Lang LaSalle explained: “Buyers are scrambling for opportunities in the largest European commercial real estate markets and this strong competition for the best product means we have seen a widening of search criteria, including location, asset class and risk level. The GBP 142 million acquisition of One Angel Square in Manchester by RREEF Real Estate demonstrates investors will now consider regional opportunities that previously they might not have considered. This trend will increase throughout the rest of the year as supply in the largest city markets remains restricted and as debt finance restraints continue to ease.”

Investors might be having to search wider, but the market continues to be driven by transactions involving large assets. According to the report transactions worth more than 100m Euros increased by 59% year on year in Q1 totalling 16 billion Euros, well above the 11 billion 5 year average of 11 billion. This also took the average lot size up from 40 million Euros last year to 47 million Euros in Q1.

Commenting on international capital, Matt Richards, Head of International Capital Group – Europe, at Jones Lang LaSalle said: “Despite on-going discussions over its fiscal position, a buoyant US stock market is driving strong purchasing activity in Europe. USD 3 billion came into Europe from North America in Q1 2013, a similar level to the amount invested in Europe from the Middle East. No amount of disappointing economic data seems to halt the steady flow of money targeting attractive yields on offer from European real estate.”

Scorching Investment Predicted in Miami Hotel Sector

Wed, 15 May 2013 00:00:00 GMT

Leading real estate firm Jones Lang La Salle is foretelling a strong year for hotel investment this year. In a recent report the firm predicts total investment somewhere in the region of USD 750 million, which would be a 12% increase compared to 2012.

According to the report USD 200 million has already been transacted in hotel investments in Q1, beating last year's figure.

"In the year ahead, we'll likely see more hotels trade hands than last year, but the lack of big-box hotel sales opportunities will keep Miami's transaction volume in check," said Gregory Rumpel, leader of JLL's hotel and hospitality group in Miami.

Big box sales certainly helped Last year's USD 600 million total, including the sale of the Gansevoort, which was picked up by a consortium led by Starwood Capital Group; and the Miami Beach Resort and Spa, which sold to the Chetrit Group for USD 117 million.

However the activity was dominated by boutique transactions in Miami and South Beach and especially in Miami Beach which was responsible for 71% of last year's transaction volume and is predicted to stay on top. In those hotspots independent and unbranded high-end hotels are prevalent.

Since 2010 REITs, private equity and institutional investors have invested USD 1.6 billion into Miami, JLL said. According to the report (and common sense) the investors are being drawn by rising tourism numbers, particularly international tourists which account for 50% of overnight stays in Miami. Over the last 13 years Miami has experienced a compound annual RevPAR growth rate (CAGR) of four percent, "significantly higher than the top 25 U.S. markets with the exception of San Francisco," JLL reports.

In the first quarter of 2013, "Miami fundamentals have continued to follow this positive growth trend witnessing a RevPAR increase of 16.7 percent to USD 192, driven by 12.2 percent growth in ADR and four percent growth in occupancy during the first quarter of 2012," JLL reports.

"The market is positioned to continue to outperform national averages, further solidifying its position as one of the top investment and hospitality markets," JLL v.p. Andrew Dickey said.

Rics: Help to Buy Scheme Showing Results

Wed, 15 May 2013 00:00:00 GMT

Despite criticism from industry experts, the government's Help to Buy scheme is showing results in the UK property market. The Royal Institute of Chartered Surveyors' (Rics) Residential Market Survey showed the government's announcement of the programme has had an immediate impact on sentiment. All key indicators revealed improvement in April, except in sales to stock ratio.

New buyer enquiries had a net balance of 25 - the seventh positive result in the last eight months and the highest reading since November 2009. Rics claims the Funding for Lending Scheme has helped with this, bringing down mortgage rates and encouraging banks to lend higher multiples. However, it is confident that the latest surge in enquiries in the result of Help to Buy, despite the fact it isn't due to come into effect until next year.

What's more, the increase in demand and supply in recent months is consistent with the improving trend that is visible in the headline price balance - the first positive outturn in the series since June 2010. Forward looking indicators for sales and prices recorded positive readings at three and twelve months. The net balance for price expectations over 12 months increased from 26 to 34. Results are now in positive territory in all parts of the country, excluding Northern Ireland. Surveyors claim that on average, prices will rise by one per cent over the next year. This is up from just 0.1 per cent in December.

While many may be celebrating the positive turn Help to Buy is having, there are some that aren't convinced. Experts at Fathom Consulting explained in their 'Can Help-to-Buy re-ignite the UK housing market bubble?' report that the scheme could in fact increase the price of the average home to GBP 300,000 because of the cost of inflation. They maintain that by 2015, prices could rise by a massive 30 per cent, creating an unwelcome bubble for the UK. Currently, values remain contained because so few people can afford to get on the housing ladder.

UK Housing More Affordable For Key Workers

Tue, 14 May 2013 00:00:00 GMT

More areas across the UK have become more affordable for property investment in the past 12 months, according to new research.

Figures from the Halifax found that almost two-fifths of towns in the UK are now affordable for home purchase, compared to just four per cent in 2008. It is also a two percentage point increase from the 36 per cent affordability levels in 2012. Nevertheless property affordability is still lower than recorded levels in 2003. Prior to the house price boom properties in 43 per cent of towns were considered to be affordable.

The notion of affordability is based on the ability of key public service workers to buy their own home, combined with a comparison of average house price against average earnings. In regions where houses are considered affordable, the ratio of house price to earnings is below four. The lowest house price to earnings ratio for key workers across the UK was seen in the north of England and Scotland. Followed by Wales, the North West and Yorkshire and the Humber.

Unsurprisingly, London and the South East are the least affordable regions for property purchases. The figures showed that four regions across the UK now have an average affordability ratio of less than four, compared to 2008 when no regions had average house prices that were affordable to key workers.

“A combination of declining or static house prices in many areas, combined with some growth in earnings, has contributed to the improvement in housing affordability since 2008,” said Martin Ellis, housing economist at the Halifax.

“However, significant house price growth in the past decade as a whole has meant that housing is still unaffordable in more than half of the towns surveyed.”

Legislation such as the Help to Buy scheme have been welcomed to make housing even more affordable, to help give the property market a boost. However, former economists at the Bank of England have called the scheme “reckless” and suggested that the new programme could have the opposite effect in the long run. Experts at Fathom Consulting have warned in a new report that Help to Buy could re-ignite the housing bubble and push property prices up by as much as 30 per cent in two years.

US Commercial Property Prices Rising

Mon, 13 May 2013 00:00:00 GMT

U.S. commercial property prices hit record levels last month, a new report has revealed.

The latest Green Streets Advisors' commercial property index moved one percent higher than the record achieved in August, 2007, fuelled by low interest rates and "modest economic growth." The index rose one percent in April, after a two percent increase the month before, Bloomberg reports.

"It's likely we'll see more gains," Green Street analyst Peter Rothemund said in the statement. "Real estate continues to be attractively priced relative to the returns on offer in the bond market."

The Green Street index is based on the approximate value of REITs portfolios, which means it is only one representation of prices, because REITs typically own high quality properties which -- arguably especially now -- hold a higher value than the other market segments.

But it's not just Green Street analysts who are projecting positivity on US commercial real estate, according to a recent Bloomberg article rising confidence in US commercial property markets is driving investors away from bonds to the higher gains offered by office, apartment and industrial properties, as well as malls and retail centres in the US.

RICS: Europe Faring Worst for Commercial Property Investment

Mon, 13 May 2013 00:00:00 GMT

Europe is trailing behind other global commercial property investment markets, according to the latest Global Commercial Property Survey from the Royal Institution of Chartered Surveyors (RICS). It has emerged that Europe has seen falls in its commercial activity, whilst analysts have forecasted further declines in values and rents for the rest of the year. Both France and the Netherlands performed the worst, with investment demands falling vastly in the first quarter of the year.

On the up side, there has been an increase in investor interest and confidence in Spain, Ireland, Czech Republic and Belgium, with capital values showing signs of rising. Generally, top markets on the continent were Germany and Russia, which both saw tenant demand, interest in distressed property and rental expectation increasing over the same period.

In contrast, Canada and Japan saw positive forecasts for the coming year, with rising numbers also being seen in the US, China, Hong Kong and the UAE. Out of all of these countries, Japan has marked the best improvement, backed by many governmental policies boosting commercial investment.

Simon Rubinsohn, RICS chief economist, said: "The easing in risks premia has continued to underpin the global real estate market with a few notable exceptions. Significantly, Asia continues to be particularly attractive for investors but other parts of the globe including North America ... are also seeing a greater level of interest."

Generally, the survey sample was positive about global markets and investment, with the investment market still being ahead of the occupier market, and this expected to continue for some time. Asia, the UAE and North America were seen as the best bets for global investment, even though commercial lending from banks has been continually struggling since the global financial crisis hit five years ago.

Do Estate Agents Have a Duty to Educate Buyers?

Fri, 10 May 2013 00:00:00 GMT

With many people entering the property market unsure of the purchasing process, it is perhaps time to ask whether estate agents have a duty to educate buyers? Research from the Royal Institution of Chartered Surveyors (RICS) recently showed that many people are being faced with unnecessary costs, simply because they don't know the first thing about buying a home.This can total an average of GBP 5,750 in repair bills alone, as a result of not having a survey conducted prior to purchase.

RICS claim 80 per cent of people believe compulsory regulation of estate agents would solve this problem, placing the onus on them to improve consumer understanding. With almost a third of first-time buyers admitting they don't have a good grasp of the purchase process and 30 per cent stating their agents failed to advise them on their transaction, action certainly needs to be taken.

There is currently no statutory regulation in place to ensure agents are qualified to sell property. Agents that do not belong to a professional body aren't obliged to meet minimum competency standards and are unregulated. Consequently, people could be dealing with an agent that is giving inaccurate advice.

RICS maintains that more needs to be done to ensure estate agents know what they are doing when selling a property. This will ensure clients have the proper advice and prevent many from being lumbered with a property they are unhappy with.

Peter Bolton King, RICS global residential director, commented: "When making the biggest purchase of their lives, it’s important that buyers – and especially those who haven’t been through the purchase process before – understand precisely what is involved. This is particularly relevant now, with the market now seemingly over the very worst and more first time buyers a position to make a move."

Research has shown that 93 per cent of first-time buyers want agents to meet a minimum competency standard. Twenty-three per cent claim their agent didn't demonstrate an in-depth understanding of the sales process, while 53 per cent admitted their agent didn't make them aware of the difference between a survey, appraisal and valuation.

Want to avoid mistakes when investing in property? Lessons to learn from the property market crash

Is the Help to Buy Scheme Really What it Seems?

Fri, 10 May 2013 00:00:00 GMT

While the government was praised for its introduction of the Help to Buy scheme, a report has suggested that it may not be what it seems. Former economists at the Bank of England claim it could end up raising the cost of the average home to GBP 300,000 because of the price of inflation. Calling the programme "reckless", the experts at Fathom Consulting, explain in their 'Can “Help-to-Buy” re-ignite the UK housing market bubble?' report that prices could increase by a massive 30 per cent by 2015.

Help to Buy was designed to get first-time buyers onto the property ladder and is a mortgage guarantee that enables people to get a new build home or existing property with a deposit of only five per cent. Set to commence on January 1st 2014, it is available to first-time buyers and home movers. However, those intending to rent out the property won't be able to benefit from the scheme.

Despite being initially hailed as a way to reinvigorate the housing market, experts now claim it will prove counterproductive. They explained that the fact only a handful of people can afford to buy real estate is keeping average house prices contained. Values currently stand at GBP 233,000 and are already proving too great for budding buyers.

Andrew Brigden, senior economist at Fathom Consulting, said: "Help to Buy is a reckless scheme that uses public money to incentivise the banks to lend precisely to those individuals who would not and should not be offered credit. Had we been asked to design a policy that would guarantee maximum damage to the UK’s long-term growth prospects and its fragile credit rating, this would be it."

Fathom Consulting believes that Help to Buy is at risk of re-igniting the housing market bubble, which would mean the collapse of the property sector once again. This is partly because the scheme hasn't been properly contained - it is essentially open season for buyers. The government has been heavily criticised over the potential use of Help to Buy to fund second homes.

Everybody Needs Good Neighbours, Survey Reveals

Thu, 09 May 2013 00:00:00 GMT

Property investment often boils down to location, but a new survey has revealed buyers should be looking out for more than just good local schools and facilities when hunting for real estate. Research by Primelocation suggests checking out the neighbours is a crucial move, as 57 per cent of people surveyed consider having loud or anti-social people next door as the biggest turnoff when it comes to house purchases.

This percentage is even higher in the east and north-east of England, with 61 per cent of respondents claiming noisy neighbours are a no-no when looking for a new home. Conversely, just over half of Londoners (52 per cent) are worried about having rowdy people next door.

Lawrence Hall from Primelocation commented: "Discerning buyers don't simply look for a good location but want to live in a good neighbourhood too. The quality of the neighbours and the security of the property are both clearly important factors for prime buyers."

It seems who lives next door is an important issue for Britons, with research from the Yorkshire Building Society showing that only 46 per cent trust their neighbours. Some 28 per cent resolutely don't trust those living next to them, while a shocking 26 per cent don't even know their neighbours. This situation looks set to deepen with the next generation, with only 30 per cent of people between 16 and 24 saying they trust the people next door. Conversely, almost two-thirds (62 per cent) of people over 55 have faith in their neighbours.

Only 34 per cent of Britons claim they would welcome newcomers to their area, while one in ten admit being suspicious of new residents. Chris Pilling, Yorkshire Building Society's chief executive, said: "The UK has always been very proud of its community spirit but it seems neighbourliness is not as prevalent as we might think."

For investors, it could pay to ask current residents what the neighbours and the general community is like or to speak to those next door. This will give an accurate picture of the area and could make you aware of issues that wouldn't normally be communicated by a real estate agent.

Demand Low but Room Rates Rising for US Hotels

Thu, 09 May 2013 00:00:00 GMT

The US hotel market has a few mixed messages for property investors as it progresses further into the second quarter of the year. Data from STR shows that in the week ending April 20th, occupancy was down by 1.2 per cent to 64.7 per cent, but average daily rates and revenue per available room both increased by 2.6 per cent and 1.4 per cent respectively.

As the hotel market entered the final week of April, daily rates stood at USD 109.62 (GBP 70.50), while revenue per available room was recorded at USD 70.90 (GBP 45.50). While the Boston terrorist attacks have been attributed to the figures, the summer months look set to deliver more of the same. Jan Freitag, a senior executive at STR, told USA Today that consumers should prepare for high prices, particularly in hot spots.

"San Francisco and New Orleans lead the pack in terms of room rate growth," he said. "Hotels in both cities report double-digit increases for transient travelers. San Francisco is such a hot leisure and meetings market that its group room rates increased by nearly ten per cent. Rates are increasing so much that travelers are looking across the Bay Bridge to Oakland and south to San Jose, for more affordable accommodations. Rates in those areas have been rising too."

Meeting planners are also eager to head to New Orleans and the property market is continuing to make a remarkable recovery following Hurricane Katrina. Mr Freitag explained that hotels are now enjoying higher occupancy levels and fees, with rates up by approximately ten per cent.

However, it is New York that is leading the pack when it comes to room-rates for both transient travellers and groups. A room in the city now costs approximately USD 314 (GBP 201.96) a night, which is almost USD 100 higher than group room values. Conversely, Washington DC has witnessed a drop in rates, thanks to a lack of meetings and decreased government travel, Mr Freitag explained to the news provider.

Learn more about investing in hotels

RealtyTrac Reports on Best Buy to Flip Markets in America

Wed, 08 May 2013 00:00:00 GMT

Warning! You may want to sit down before reading this story, and put down your coffee, especially if you were adversely affected by the financial crisis in any way (who wasn't?). The latest report on the US housing market from foreclosure tracking specialists RealtyTrac is telling us all which markets in the US are now best for home flipping.

Who would have thought we would have seen a return of that word so soon is such a battered and bruised housing market. We learned to the world's peril that house prices rising rapidly turns into a recipe for disaster, and the US paid a higher price than most for this knowledge, yet once again investors are buying to flip.

California is home to 11 out of the top 25 markets in the U.S. for flipping homes in 2012, according to the new report from RealtyTrac. Behind California, Florida has six markets on the RealtyTrac list. The research firm selected the top 25 markets in the U.S. where flipping homes - buying, restoring and reselling within 90 days - is the most profitable, based on gross profit, the difference between the average original purchase price and the eventual flipped sales price of the home.

The way Realty Trac defines flipping doesn't sound so bad. If investors are buying property and doing genuine reformatory work on the property then they are completely justified in selling for a profit, but a profit of 63%? That is the average profit flippers in Orlando, Florida made on sales last year according to the report. Followed by Las Vegas where flippers made 53% on average.

With profits like that who could blame investors, after all an investment is made to make profit is it not. Indeed, in that sense there is nothing wrong with buying and flipping, but buying to flip is a game of chance as at any time the worm can turn. An investment should always be made with a clear strategy and one or more backup plans in case that fails. So if you buy to flip you should still be buying a property that you can afford to hold if it doesn't sell, and maybe even one that will do very nicely on the rental market in those circumstances.

Ultra-Prime Property Purchases to Rise in Safe Havens

Wed, 08 May 2013 00:00:00 GMT

London's safe-haven status will ensure ultra-prime property purchases in the city continue to rise. Research by Candy & Candy, Savills and Deutsche Bank showed the value of residential property transactions over GBP 10 million in financial hubs like the capital will grow by 27 per cent over the next five years. New York, Hong Kong and Singapore will also see a boom in their ultra-prime markets.

These predictions are based on the examination of recent and immediate future growth projections and shed light into the growth of ultra-high-net-work (UHNWI) fortunes. Increases in UHNWI fortunes are helping to fuel demand for luxury real estate across the globe and London is particularly reaping the benefits.

Nick Candy, chief executive officer of Candy & Candy, said: "By 2017 the UHNWI population is expected to have increased by 20 per cent and their wealth by 30 per cent. A trophy ‘safe haven’ property in a global city is typically at the top of the shopping list for wealthy individuals, and their continuing appetite for such investment is expected to exert even greater influence over global property markets in the next few years."

Already there are signs of significant market growth in the sector, with ultra-prime housing markets in London, New York, Hong Kong and Singapore collectively witnessing more than 300 residential real estate transactions in 2012. Transactions across all four cities exceeded GBP 6.6 billion. However, growth is proving to be both organic and incremental, as ultra-prime areas expand and new ultra-prime stock is built.

But just where will investors be coming from? Savills claim wealth creation is mainly taking place in emerging markets like Africa, central Asia, China and South Korea. Asia is already experiencing wealth creation increases of 11 per cent per annum, while Russia, Eastern Europe and Latin America each recorded a rate of nine per cent. These new pools of wealth are helping to shape prime property sectors across the globe and the world's major cities.

UK Dominant in Growing European Retail Investment

Tue, 07 May 2013 00:00:00 GMT

Retail real estate investment in Europe jumped 60 percent in Q1 compared to last year, with investors pouring 5.1 billion Euros into the real estate during the quarter, 40% of which was in the UK, according to new data from Jones Lang LaSalle.

In a familiar trend, shopping centre investment dominated the quarter with 4 billion Euros invested, an 85% increase on the previous year according to the report.

In the U.K., notable deals during the first quarter included the sale of the Grosvenor Shopping Centre Fund, purchased by F&C REIT Asset Management for £254 million and the Intu Properties' purchase of Midsummer Place in Milton Keynes from Legal & General for £250 million, according to the release.

While sovereign wealth funds and REITs continue to focus on prime shopping centres, demand for secondary property is increasing, driven by the "global view that UK retail has adjusted first to both obsolescence and the internet," said Adrian Peachey of JLL.

Buyers are able to "price in upsides in terms of improved loan arrangements, rental growth, yield compression and value recovery, which realistically support an improvement in sentiment," Mr Peachey added.

Finally the release told of lower investment volumes in both France and Germany, as the markets are hampered by low prime supply. Meanwhile the Nordics and Russia posted highest investment volumes during the first quarter, although the report didn't contain specifics for those markets.

Is a Bungalow the Best Bet for Property Investment?

Tue, 07 May 2013 00:00:00 GMT

If you have your eye on residential property investment, chances are you won't feel particularly enamored towards bungalows, but according to a new report, this could be a big mistake. The Policy Exchange has published its Housing and Intergenerational Fairness study and found that many Britons would prefer to live in a bungalow than any other type of building. In fact, so revered is this housing design that 'The Bungalow' remains the third most popular house name, after 'The Cottage' and 'Rose Cottage'.

In particular, bungalows are the most popular among the older generation, who enjoy the security, ease of mobility and simplicity of cleaning they offer. Across a series of surveys since 2000, Halifax bungalows have emerged as people's favourite type of home. Despite this, it seems no one is building them anymore.

In 2009, the number of bungalows built across the UK stood at just 300 and just two per cent of the country's housing stock consists of these homes.

"Given the ongoing process of demolishing existing homes and rebuilding (usually at higher densities), then we were probably losing bungalows," the Policy Exchange wrote. "If 30 per cent of people's ideal home is a bungalow, and this preference is even stronger for older

people, it make no sense to prevent construction of bungalows if we are interested in increasing the housing supply and a more efficient use of the existing housing stock."

With the British population rapidly ageing, bungalows may in fact be a lucrative opportunity for investors. Many older adults living in a large family home intend to downsize to a property that is easier to manage and more suitable to their needs. Set over one floor and offering outside space, bungalows are therefore the perfect solution.

This also makes sense as a way to solve the UK shortage of family homes. With old people occupying properties that could better suit a family, making more bungalows available to cater to the ageing population will free up larger spaces.

American Attitudes Toward Home Ownership Changing - Again?

Fri, 26 Apr 2013 00:00:00 GMT

When commentators began to suggest that the US housing crisis had changed people's attitudes towards housing; turning the US into a nation of renters, many took the potential for this being a "possibly permanent" change with a large pinch of salt. But few would have predicted that the commentary would be reversed so quickly.

Already there is abundant talk of the changing attitudes toward home-ownership, and how it raises questions about the future demand for expansion of single and multi-family rental capacity. But the desire to buy a home is something quite different to having the means to do so; the former can swing with the winds of sentiment while the latter is much harder to put into reverse.

It has long been called the American dream to own a home with a white picket fence, and during the boom the abundance of credit made it almost criminally easy for anyone who so desired it to achieve the dream of owning their own home. The credit crunch - sparked by a US housing crisis severe enough to precipitate a global financial collapse - put paid to that.

Since the financial crisis blew up in our faces first time buyers in America have found it nigh on impossible to get a mortgage and, despite record low house prices were forced onto the rental market. Here they were joined by the millions of people losing their homes to repossession and those who choose to rent anyway. This created a massive rental boom as the commentators talked about a generation of renters, a lost generation of buyers and the US possibly being forever changed into a nation of renters.

Recently the American housing market has entered a period of recovery, and according to one major survey the subsequent positive breeze in sentiment has once again changed the mind-set of the US public from predominantly favouring renting to once again predominantly aspiring to buy. However, according to another survey there has been no such change, and in any case, it will take a lot more than positive sentiment to get home ownership figures back to anywhere near their pre-bust level.

A national Gallup survey released last week found that most Americans own a home and plan to continue doing so (56 percent), or don't own a home but plan on buying one in the next 10 years (25 percent). Eleven percent of Americans don't own a home and have no plans to buy one, and 3 percent own a home but plan on selling it and renting in the next 10 years.

Meanwhile a massive study including a survey and 10 focus groups found the opposite. The study, conducted by Haart Research for the Macarthur Group found that:

There's been a seismic shift in renting versus owning. Some 57 percent of adults believe that "buying has become less appealing," and by nearly the same percentage (54 percent), a majority believes that "renting has become more appealing" than it was before, producing a net shift of 60 percent.

Nearly half of current owners (45 percent) can see themselves renting at some point in the future.

Homeownership is no longer synonymous with the American Dream. Three in 5 adults (61 percent) believe that "renters can be just as successful as owners at achieving the American Dream." This sentiment is broadly felt, among owners (59 percent) as well as renters (67 percent), and across all regions of the country.

Ownership is no guarantee of housing stability. Nearly half of all respondents (45 percent), owners and renters, have experienced a time in their life when their "housing situation was not stable and secure."

So who's right? The truth is it is too early to say.

According to the U.S. Census America's home ownership rate has declined from a peak of nearly 70 percent before the crash to roughly 65 percent today, while the share of renters has increased only slightly from 34.1% in 2009 to 35.4% in 2011. But according to the aforementioned Gallup survey the share of renter households increasing from 22 percent to 34 percent between 2006 and today. Meanwhile the rate of home ownership among younger Americans has declined at substantially faster clip, dropping from around 43 percent before the crash to roughly 37 percent today. Projections by the Urban Land Institute suggest the home ownership rate may fall back to as low as 60 percent over the course of the coming next decade.

But it is one thing being forced into renting, or being unable to buy, it is another to have your attitudes towards renting or buying changed forever. That said nothing can make you see something in a new light than being forced to give it a try.

It has been argued that this change in the housing market forced the wider public to consider the arguments for renting as a choice as oppose to buying. Numerous studies have argued that home ownership stymies the flexibility of the labour market and the economy by tying home owners to their location and making it harder for them to pick and move to jobs and economic opportunity. Three-quarters of respondents to the Haart study said that "moving to a new city or state for a job is more likely now than it was in the past".

A majority of Americans also say home ownership has lost its economic allure as an investment for the future. Nearly seven in 10 Americans (69 percent) report that "it is less likely for families to build equity and wealth through homeownership today compared with two or three decades ago." Most of all, three in five adults (61 percent) believe that "renters can be just as successful as homeowners in achieving the American Dream." This sentiment was felt among more than half of home owners (59 percent) and more than two-thirds (67 percent) of renters.

The American dream has been the American dream for a long time, and has survived many a rough patch in terms of sentiment, but at the same time globalisation is becoming a reality and more people than ever before are moving around to find the best jobs. Time will tell which of these mind-sets will prevail in the American housing market.

Monthly Rents Are Higher in 2013

Fri, 26 Apr 2013 00:00:00 GMT

The country's landlords are continuing to benefit from increasing rental yields, with prices in 2013 consistently higher than the average rents received in 2012. According to the latest HomeLet Rental Index, which shows agreed rental prices rather than advertised rates, the average cost of renting a home in the UK stood at GBP 774 in March this year.

Though this is a decrease of 0.4 per cent on the figure recorded in February this year, average rents are still 1.8 per cent higher than in March 2012, with seasonal fluctuations giving way to a more solid yearly rise. The trend is being driven by London property, with average rents in the capital now standing at GBP 1,227 per month, which is 6.5 per cent higher than the same time last year.

Andy Richards, HomeLet's business development director, commented: "London's private rented sector has been the subject of much discussion recently, particularly around how costs are soaring in the capital, and how regulation in the region may lead to a cap in costs so tenants aren't subject to such steep rises in costs."

Though rents in the capital do appear to have slowed down, demand for rental property is still increasing, and Mr Richards said a balance now needs to be struck between landlords reaping a "lucrative return" from their investment and tenants being able to cope with living costs. As has been the trend in recent months, the national average rental cost is being driven up by prices in the capital, which far exceed any other region.

Though rents are rising steadily around the rest of UK, major fluctuations do exist, particularly in the north-east, which experienced a 16.8 per cent rise from February and a 15.7 per cent year-on-year increase to stand at GBP 590 a month. Wales saw the biggest decrease for the second consecutive month, meanwhile, with average rents falling by three per cent to stand at GBP 544 a month.

California Foreclosure Filings Hit 2005 Levels

Thu, 25 Apr 2013 00:00:00 GMT

There is a wealth of positive news on the US housing market at the moment, so much so that it is hard to ignore. But in another way it is hard not to ignore it when you are constantly hearing about metrics returning to 2008 levels, what was so great about 2008? However, according to the latest data from Dataquick, a 67% drop in US foreclosure filings saw the figure hit its lowest level since Q4 2005 in the first quarter of this year, now that is hard to ignore.

According to the report 18,567 homes entered the foreclosure process in Q1, a 51.4 percent drop from the previous quarter.

"The unusually sharp drop in the number of mortgage default notices filed by lenders stems mainly from rising home values, a strengthening economy and government efforts to reduce foreclosures," the firm reported.

A package of new foreclosure laws - the Homeowner Bill of Rights - may also have impacted filings. The laws went into effect January 1 and default notices "fell off a cliff," before edging up in February, the firm reports.

"In recent years we've seen temporary lulls in foreclosure activity after new laws kick in and lenders adjust," said DataQuick president John Walsh in a statement. "It's certainly possible foreclosure starts will pick up at some point this year if lenders need to play a lot of catch-up."

According to Walsh rising home prices continue to have a positive impact on foreclosure figures. The latest data from the California Association of Realtors shows California home prices up 28.2 percent year over year in March.

"As values rise, fewer people owe more than their homes are worth, and more people can refinance into a more favourable loan," Mr. Walsh said. "It also means more who fall on hard times can sell their homes for enough to pay off the loan."

Positivity Abounds in Student Accommodation Sector

Thu, 25 Apr 2013 00:00:00 GMT

The student accommodation sector is filled with positivity at the moment, creating an attractive environment for property investment. Knight Frank forecasts an average blended UK return of 9.2 per cent over the next 12 months, reflecting a 0.4 per cent rise in London returns to 9.1 per cent. However, rising rents are the result of the market being relatively undersupplied. Consequently, rents in London will rise by three per cent, while regionally increases of 7.25 per cent will be seen from September 2013.

Commenting on the findings, James Pullan, head of Knight Frank Student Accommodation, said: "Student property is one of the most successful real estate asset classes, thanks to stability of demand for student bedrooms from all over the UK. The market is still structurally undersupplied in all core university cities." However, he stressed that student accommodation is a mid-to-long term investment and access to stock is currently very limited.

The student accommodation sector is also currently dominated by specialist providers and funders, and new operators are finding it difficult to enter the market. However, there is a significant volume of new equity available, Mr Pullan explained. This is helping to make the sector more attractive, in addition to steady rental growth and a perception among international investors that the UK is a global knowledge sector.

However, Mr Pullan stressed there are certain things that cannot be ignored going into the year ahead. This includes a large volume of product entering the market and substantial equity, primarily from international buyers. The first student property REIT has also recently been launched and there is considerable interest globally.

Nevertheless, there has been concern raised about the sustainability of this run of form for student accommodation. The Global Property Guide reported that macro fundamentals throw doubt on the performance of the sector. Primarily, it fears that with a lot of developers jumping on the bandwagon, rental yields in popular spots could fall and saturation may occur.

Government to Consult on SIPPs and SSASs Residential Property Inclusion

Wed, 24 Apr 2013 00:00:00 GMT

In an unexpected announcement, the Government has decided to explore with interested parties whether the conversion of unused space in commercial properties in high streets and town centres to residential use could be allowed within pension schemes.

At present, only commercial property can be held tax-free in both self-invested personal pensions (SIPPs) and small self-administered schemes (SSASs).

With an ever-increasing supply of unoccupied commercial properties, including shops, office and public houses, interestingly, there are quite a number of "commercial to residential" projects at various stages of completion. But current legislation makes the process fraught with red tape.

As pension schemes are hit with a major tax penalty if they hold residential property, the developments have to be sold on prior to them becoming habitable. But as there isn't a formal set of rules which confirms the exact point at which this occurs, it's difficult to know whether the development has gone a step too far, leading to dire financial consequences for the pension scheme.

If the consultation process reveals there is an appetite for this change, it could bring a number of valuable benefits.

It could breathe new life into some of Britain's formerly vibrant and interesting high streets and town centres. It would certainly meet conclusions drawn by The Portas Review.

It could kick-start the property market, providing a valuable boost to house prices. And it could open up new and interesting rental opportunities right in the heart of communities.

For pension investors, it could provide a worthwhile alternative to stock market investment, which continues to suffer significant volatility as Britain, Europe and the world rocks from one financial crisis to the next.

In fact, it could encourage many pension holders to restart their contributions to enable their pension funds to acquire property. Given the recent reductions in State pension benefits, with a complete overhaul due to take place in 2016, there's never been a more important time for people to provide for their retirement.

Perfectly placed to add value to the Government's consultation process is SIPPclub. It has just launched a one month campaign to canvas the opinions of all interested parties. This includes investors, advisers, property professionals and pension scheme operators. The campaign conclusions will be presented to The Treasury and they will be made available to the public.

We're keen to support the consultation process. To ensure the Government obtains the views of the largest number of people, we kindly ask you to give your opinion about this matter using the form below.

The campaign is being run and co-ordinated by SIPPclub.

Is the UK No Longer a Nation of Homeowners?

Wed, 24 Apr 2013 00:00:00 GMT

It seems the UK is no longer a nation of homeowners, with new figures showing more and more people are being forced to rent. Data from the Office for National Statistics (ONS) noted a slump in homeownership for the first time since 1918, indicating traditional methods of property investment are now out of reach for many.

While 77 per cent of households in England and Wales were rented in 1918, since 1953, ownership began to increase at a faster rate than in previous decades. By 1971, there was an equal percentage of households owning and renting. In 2001, ownership reached a peak at 69 per cent but over the last decade this has fallen to 64 per cent. Between 2001 and 2011, the number of households buying their homes through a mortgage fell by 749,000. Conversely, the percentage of households renting in all English regions and in Wales increased. London continues to have the highest number of renters, at 50.4 per cent of all households.

ONS claims high house prices, low wage growth and tighter lending requirements are to blame for this reversal of the historical trend for homeownership. However, new government schemes are hoped to increase the number of people owning their own property and figures are already beginning to look more positive. Data from the Council of Mortgage Lenders has shown that the number of first-time buyers entering the market increased by three per cent in February - the best start to the year since 2008. When taken in conjunction with January's figures, the beginning of 2013 has seen the largest number of people getting their foot onto the property ladder for some time. In fact, in February there was 17 per cent more first-time buyers than in the same time in 2012.

Loan affordability has also been positive, with figures showing the market is becoming "marginally more favourable" for first-time buyers. Throughout the second month of the year, smaller amounts were borrowed in absolute terms and relative to income.

Learn more about property investment strategies that use the downturn to their advantage here

Prime Ministers and their Properties: 5 of the Best

Wed, 24 Apr 2013 00:00:00 GMT

If the expenses scandal taught us anything, it's that politicians like their property and it seems the relationship between public servants and real estate is an historical one. You need only look at some of Britain's most famous prime ministers to see that the premiers like a home to impress, providing a stunning backdrop to some of the most important political decisions in history, no doubt!

Here is our sample of five of the most noted prime ministers and their property legacies.

Charles Grey and Howick Hall

On November 22nd 1830, Charles Grey, also known as the second Earl Grey or Viscount Howick, became prime minister. Leader of the Whig party, he was one of the primary architects of the Reform Act 1832. However, he is perhaps most famous for his affair with Georgiana Cavendish, Duchess of Devonshire. The epic romance was even turned into a film, starring Keira Knightley, and at the time the tryst was one of the biggest scandals to rock the UK.

More tea anyone?

So why was his property so special? The home of the Grey family since 1319, it is where Earl Grey tea originated and is a piece of British history. The tea was specially blended for Charles to suit the water from the well at Howick and, although they didn't register the trademark, it was widely known that Lady Grey used the tea when entertaining in London as a political hostess.

The Hall was also incredibly beautiful and luxurious in its day. The current structure was built in 1782 by William Newton. However, a fire destroyed the whole of the interior of the main house in 1926, along with all the contents of the top two floors. It was rebuilt in 1928 to a different design by Sir Herbert Baker, much to the anger of Georgian architecture lovers.

Lord Melbourne and Brocket Hall

The prime minister of Queen Victoria, Lord Melbourne, also known as William Lamb, is one of our most notorious premiers. A fan of the status quo, he was opposed to Grey's Reform Act and known for several sex scandals. He was most notably the victim of an attempted blackmail from the husband of close friend Caroline Norton, who accused Melbourne of having an affair with his wife.

Melbourne is accredited with training Queen Victoria on political matters and the pair struck up an enduring relationship. So close was his friendship with the Queen that she stayed at his residence Brocket Hall several times. When he died, the property passed to Melbourne's sister who was married to future prime minister Lord Palmerston, who died in strange circumstances at the hall. Margaret Thatcher also stayed there when writing her memoirs.

Margaret Thatcher's London Townhouse

Perhaps missing the long illustrious history of the residences of other prime ministers - not to mention the sprawling grounds and hereditary title - Margaret Thatcher's London townhouse is sure to turn into a memorial for the late premier.

Policemen not included

The controversial Conservative prime minister was often pictured outside her white-fronted home and it's black door is hauntingly reminiscent of Number Ten and the seat she lost. Even if the property isn't turned into a London attraction, it is sure to fetch a high price in the market and is a piece of political history.

The Blair's and their property portfolio

If you need proof that prime ministers like their property, look no further than ex-Labour leader Tony Blair. In fact, the real estate he has amassed can now probably be referred to as a portfolio. Whether for himself or other members of his family, Blair has been eager to buy up property throughout London.

He has recently bought a GBP 1.35 million four-storey Georgian townhouse in central London for his son Nicky, the Daily Mail reported. This was paid for in cash and is just one of their seven properties, estimated to be worth a collective GBP 20 million! Among these are the family's GBP 3.65 million mansion, two flats in Bristol and the GBP 800,000 London mews house.

David Cameron's family properties

You only have to look at current prime minister David Cameron to tell he comes from money, so it is no surprise he has a number of properties. While these aren't anything like the stately piles of some of his predecessors, they are enough to make most of us envious. In addition to the GBP 2.5 million London home and a constituency house, the Cameron family is estimated by the Sunday Times' Rich List to be worth GBP 10 million, some of this in real estate.

Number 10 - Not for sale

A pattern?

So what can be gauged by prime ministers and their properties? Firstly, in days gone by you needed a title and land to enter office. Secondly, modern prime ministers are aware that London property is a safe place to put their money and a valuable asset. When working in a sector that is always changing and volatile, such certainty is no doubt welcome.

US Apartment Market Untouchable - For Now

Tue, 23 Apr 2013 00:00:00 GMT

According to the latest data, neither rising home-sales nor surging multifamily construction is impacting on the impressive vacancy rates in the US apartment market, with rates continuing to fall despite strong rents across the country.

The latest National Multi Housing Council's (NMHC) Quarterly Survey of Apartment Market Conditions shows improvement across all areas and all four indices - Market Tightness (54), Sales Volume (55), Equity Financing (56) and Debt Financing (59) - came in above 50, which indicates improving conditions. This reverses last January's findings, where Market Tightness and Sales Volume dipped below 50 for the first time since 2010.

"The apartment industry is operating on cruise control, as the expansion continues unabated," said Mark Obrinsky, NMHC's Vice President for Research and Chief Economist. "While concern about overbuilding has begun to crop up, demand for apartment residences remains strong. New construction may have finally recovered fully, but most units under construction won't be delivered until 2014 or later. The dearth of recent completions has contributed to relatively low product availability. As deliveries increase, we expect to see an even greater pick-up in sales volume."

Key findings of the report included:

The market tightness index saw the biggest jump, up from 45 in March to 54 in April. April was the 13^th quarter that the index has been above 50, with only January 2013 indicating contraction. One quarter of respondents saw markets as tighter, up from 16 percent last quarter.

The Sales Volume Index increased to 55 from 49. Almost one-third (30 percent) reported sales volume was higher while only 20 percent indicated that sales volume was lower.

Financing remains constrained. One in ten reported construction financing as available for all types of apartments in all markets. In addition, only one quarter thought acquisition financing was available for all properties in all markets.

The Equity Financing Index remained at 56, unchanged from the previous two quarters

Debt Financing Index increased by two points to 59. One quarter of respondents viewed now as a better time to borrow compared with three months ago, while six percent viewed now as a worse time.

Mortgage Lending Drops but Figures Distorted

Tue, 23 Apr 2013 00:00:00 GMT

Mortgage lending decreased in March year-on-year, but the figures may not be an accurate depiction of the health of the sector. The Council of Mortgage Lenders (CML) claims that while gross mortgage lending stood at GBP 11.6 billion last month, down eight per cent from the GBP 12.6 billion recorded in March 2012, the end of stamp duty the year previous distorts any meaningful comparison.

Gross lending increased by nine per cent between February and March, taking Q1 lending to GBP 33.8 billion. This is a nine per cent fall from the last three months of 2012, but mirrors gross lending figures from the first quarter of 2012. While comparative analysis is precluded by last year's stamp duty deadline, figures suggest that 2013 has kicked off to a good start.

Bob Pannell, CML chief economist, commented: "Conditions in the housing and mortgage markets continue to show signs of improving. The improvement in funding markets over the past year, reinforced by the incremental benefits of the Funding for Lending Scheme, has been the key catalyst behind stronger housing activity. The Help to Buy mortgage guarantee scheme – while still embryonic as yet – holds significant firepower, and has the potential to increase activity from 2014."

These statements follow the release of further data from CML, showing lending to first-time buyers is increasing. In February, the number of people getting their foot on the property ladder rose by three per cent. Combined with January's figures, the start of the year saw the largest number of first-time buyers for the first two months of the year since 2008. Year-on-year, lending to those looking to buy their first property increased 17 per cent.

This is the equivalent of 16,400 loans, a rise of 600 since January when 15,900 were recorded. In value, lending to first-time buyers totalled GBP 2 billion. This is the same as in January, but equates to a 18 per cent rise year-on-year.

UK Hotel Investment Quadruples in Q1

Mon, 22 Apr 2013 00:00:00 GMT

2013 looks set to blow the hotel sector away. According to new data from Savills investment in the sector in Q1 this year quadrupled compared to last year, hitting a new total of £1.9 million compared to £492 million worth of transactions in Q1 2012.

Michelle Webb, director of hotel investment at Savills, comments: "This has been an exceptionally strong first quarter in the hotel investment market, boosted by the sale of three significant portfolio, the Hotel du Vin/Malmaison, Principal Hayley and Marriot which had all been on the market for some time, as well as the recent sale of the InterContinental London Park Lane.

Whilst we don't expect this intense pace of sales to continue, there are currently over £1.2 billion of hotel assets being marketed across the UK and even if a small proportion of these transact this year, sales should easily exceed the annual levels we've witnessed in the past five years."

The market has become dominated by foreign investors, who accounted for some 90% of the total transaction volume in Q1 2013. Breaking it down Savills said investors from the US and Middle East are particularly active in the market for portfolios and larger assets, while Asian Pacific investors are chasing smaller single assets.

Savills reports that roughly half the value of hotel transactions in Q1 2013 was in the regions including the majority of the Marriott and Principal Hayley portfolios as well as the Malmaison and Hotel du Vin portfolio.

Michelle continues: "The main shift over the past six months is that we are finally seeing a consensus between buyers and sellers regarding pricing in the regions, especially with the banks who have become more committed to clearing their balance sheets and realistic about the value of these properties."

Seller Shortage Fuels Property Price Rise in April

Mon, 22 Apr 2013 00:00:00 GMT

Property prices have been increasing throughout April, thanks to a seller shortage. RightMove's House Price Index posted a fourth consecutive quarter of price rises, with new seller asking prices up by 2.1 per cent (GBP 4,996). This takes the average asking price to GBP 244,706 per month - the highest ever April figure recorded.

Property coming to the market is now up by 6.9 per cent (GBP 15,717) so far this year. This is the second highest national figure ever recorded and within GBP 1,529 of the all-time high. According to RightMove, this upward price pressure is the result of increased optimism and a shortage of sellers. The number of newly marketed properties in April is down four per cent compared to the same period last year.

While there has been a 12 per cent rise in the number of new sellers, numbers of unsold stock remain little changed. This indicates a rise in sales. Quicker sale times have also been noted, with the average time a property stands on the market recorded at 80 days, compared to 90 days this time last year.

However, there has been a shock in the market - London has seen no change in values. After months of astronomical price increases, this lack of growth in the capital is no doubt unexpected. Nevertheless, RightMove claims this isn't a cause for concern and stresses it must be put in a context of 12 months of London outpacing the rest of the country.

Miles Shipside, director and housing market analyst at Rightmove commented: "With London prices pausing for breath this month but likely to bounce back next, May looks like an odds-on bet to deliver a new asking price record. This should not be confused with an overall market recovery, as while spring may be here the ongoing chill of the recession is still in the air. However, it is true to say that more estate agents are reporting more activity in more segments of the market."

Is this good or bad news? Read more about average house prices