Archive for December, 2007
Monday, December 31st, 2007
Firms are set to use 2008 to solve their pension problems, according to Deloitte.
The financial services company voiced the prediction as it revealed that the final salary pension schemes offered by Britain’s largest 100 companies will have an aggregate surplus of £15 billion at the end of 2007.
Over the year, the surplus will have improved by more than £55 billion, according to Deloitte, reflecting both positive investment returns and falls in the prices of government bonds following the subprime mortgage panic.
“Over 2008 companies will be looking to solve their pension problems for good,” commented David Robbins, a pensions partner at Deloitte.
Critics of the assessment point out the role the credit crunch has played in the improvement, claiming that the core strength of the UK’s final salary pension schemes remains in doubt.
In related news, talks are scheduled later today between BAA and air transport workers unions aimed at avoiding strikes over the company’s closure of its final salary pension scheme to new employees.
Posted in Wills and Executries | No Comments »
Monday, December 31st, 2007
Scottish areas are exhibiting a strong presence on Halifax’s new list of next year’s property hotspots.
Heading up the list of the top-ten towns for house price growth is Lochgelly, where prices are 31 per cent higher than the regional average according to the mortgage lender, with average prices forecast to stand at £118,838.
The top five is dominated by Scottish towns, with Paisley, Greenock and Aberdeen occupying second, third and fourth places respectively.
Prices in both Paisley and Greenock are 19 per cent higher than the regional average, with the former’s average price set to be £140,338 and the latter’s £140,512 next year.
Meanwhile, Aberdeen homes look set to cost an average of £202,755 in 2008 – the city’s house prices are currently 17 per cent higher than the average for the region.
Colin Kemp, managing director at Halifax Estate Agents, said: "Those areas that are likely to record the biggest price gains will tend to be those with a combination of good transport links to a major conurbation and relatively low average prices."
Nationwide last week reported an average fall in house prices of 0.5 per cent in December.
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Friday, December 28th, 2007
The number of people looking to buy a house in Scotland has continued to buck the trends being set elsewhere in the UK, according to the Times.
It is reported that house prices in Scotland rose by ten per cent this year and that the country is expected to see continued growth in 2008 with the housing market continuing to outperform the rest of the UK.
The newspaper also notes that analysts from Knight Frank have predicted a five per cent rise with HBOS and Hometrack forecasting four and three per cent rises respectively.
Commenting on the current situation, Faisal Choudhry of Savills in Glasgow said that the housing market in the country was currently thriving and that many looking to sell a house in Edinburgh can expect a fair price.
"Tenement flats for under £100,000 get snapped up very quickly. That sort of price is hard to find in Edinburgh, but anything at the bottom there sells immediately, too. And the top end of the market is still performing stronger than ever. It’s booming."
Earlier this week a spokeswoman for Nationwide said first-time buyers could alleviate the stress involved with property buying by considering a joint mortgage.
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Friday, December 28th, 2007
Homeowners looking to sell a property in Scotland have been advised this week that garages and gardens play an important part of any valuation.
A spokesman for Cluttons, a chartered surveyors and consultancy firm, said that the quality of a property’s garden area and car parking facilities can make up as much as 20 per cent of the value of a property.
Alex Upson, a partner at the firm, said that in particular larger properties would suffer if they did not have a good sized garden and that in some cases conservatories can detract from the value of a home.
"If the conservatory is going to take over more than, say, 40 per cent of the garden space, then it’s probably going to detract from the value of having the garden," he said.
He added that garages were another way for people to improve the saleability of their home – including those looking to sell a property in Scotland – and that in many cases a garage can be of "huge benefit" to inner city properties.
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Thursday, December 27th, 2007
Joint mortgages can alleviate the stress involved with getting on to the property ladder, one expert has suggested.
A spokeswoman for Nationwide said this week that first-time buyers keen to get on to the market can often face the stress of financing a new home on their own and that with a joint loan some of the pressure can be lifted.
She also noted that as with all mortgages it was important to shop around for the right deal and that there is a wide range of options available, which may interest people looking to buy a house in Scotland.
"As with all mortgages it is important to ensure you can meet you monthly payments and that you choose a competitive deal that meets your needs," the spokeswoman said.
She added that fixed-rate mortgages offer the kind of stability that many people find comforting and that this can often be helpful in situations where more than one party is paying the mortgage.
According to a recent survey by Scottish Widows, joint mortgages are increasingly being taken up by university graduates – including those looking to buy a house in Scotland.
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Friday, December 21st, 2007
House prices in the UK are to remain broadly unchanged next year, according to the Royal Institution of Chartered Surveyors (Rics).
In news that may be of interest to those looking to buy a house in Edinburgh, or anywhere else in Scotland, in 2008, Rics predicts that any drop in house prices will not "be extended in duration".
The institution also believes that base rates will be lowered to five per cent during the first six months of 2008.
Next year will also see an increase in the number of repossessions from 30,000 to 45,000, Rics forecasts – which amounts to 123 per day.
Chief economist of the institution Simon Rubinsohn comments: "2008 will prove a difficult year for the housing market, but with falls likely in the base rate, the housing market should be provided with a stable platform."
Edinburgh is currently the most expensive place to buy a house in Scotland, according to the latest Bank of Scotland quarterly house price index, as the average house price is currently £228,212.
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Thursday, December 20th, 2007
Consumers were warned in recent days of the potential perils of entering into a joint mortgage with someone they did not know very well by an independent financial adviser.
In news that may interest those looking to buy a house in Scotland, Peter O’Donovan, mortgage manager at Bestinvest, stated that a joint mortgage would provide individuals with more borrowing power than two single applicants.
However, he stated that there is "no protection" that consumers can take out when they enter into such a commitment, stating that the practice is "extremely risky".
Mr O’Donovan added that there is always a chance that co-buyers will fall out, or circumstances will alter for one individual before they do for the other.
"If you buy a house with someone and you don’t know their credit record, that’s even worse because you are jointly and solely liable for that mortgage. If the other person stops paying you have to continue," he concludes.
According to the latest Bank of Scotland quarterly house price index, the most expensive place to buy a house in Scotland is currently Edinburgh, where the average house price is £228,212.
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Wednesday, December 19th, 2007
Interest rates will fall to five per cent by the middle of 2008, according to independent mortgage broker John Charcol.
In news that may be welcomed by those looking to buy a house in Scotland in the new year, senior technical manager at the firm Ray Boulger predicts that the rate will be cut until it reaches five per cent and will not increase again during 2008.
It may, however, fall a little further, Mr Boulger states.
"A lot will depend on how the liquidity squeeze develops and so far the actions of the Bank of England don’t instil much confidence, although it is difficult to judge how much their strings are being pulled by the government," he concludes.
The Bank’s monetary policy committee elected to cut the official Bank Rate paid on commercial reserves by 0.25 percentage points to 5.5 per cent earlier this month, which may have also proved popular with those looking to buy a house in Scotland due to its likely effect on mortgage repayments.
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Tuesday, December 18th, 2007
The festive season is an ideal time to carry out enhancements to the security of a property, according to Halifax Home Insurance.
David Rochester, head of underwriting for the firm, explained in recent days that darker nights provide cover for thieves and potential for "rich pickings" beneath a Christmas tree may be too much of a temptation for them to resist.
As such, he recommends that consumers take a few steps to avoid becoming a victim, such as fitting visible key-operated locks to windows, installing security lights to properties and investing in a burglar alarm.
"Expensive items such as mp3 players, jewellery, mobile phones and car keys left on full view near windows are an open invitation to burglars," he warns.
The news that may be of interest to those looking to buy a house in Scotland, or who have recently purchased a property, follows figures published by insurance firm Liverpool Victoria, which suggest that average home contents are now worth £25,000.
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Monday, December 17th, 2007
More than two-thirds (67 per cent) of people would be willing to sell their home to live in the catchment area for their preferred school, according to recent research.
A study by independent property portal HotProperty.co.uk indicates that such areas give priority to those who live within the boundary.
However, the site notes that there is no assurance that living in such a region will guarantee entry to an academic institution.
In news that may be of interest to those looking to buy a house in Scotland, Shawn Luetchens, managing director of HotProperty.co.uk, explains that the property market reflects the competitive nature of getting a child into the "right" school.
"Due to long waiting lists and catchment area restrictions, this has become a major concern for families, one that often needs to be planned well in advance of the child actually attending school," he comments.
In other news that may interest those looking to buy a house in Scotland, it was recently reported by the Communities and Local Government house price index that Scottish house price inflation increased in October.
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