Archive for March, 2010
Why property auctions are shifting online and away from the ballroom model
We were recently asked by property magazine Property Week to respond to:
Why property auctions are shifting online and away from the ballroom model
This is what we said:
Our recent launch of weekly online property auctions is, we think, one of the most exciting developments in the UK property investment market for years. And following the success of our first two events in February, we very much see live online bidding as the future of property auctions in the UK.
With over 150,000 visitors to our auction site in February, it would appear that the UK is set to follow the trend in the US, where our partner REDC, the world’s largest property auctioneer, has rapidly transitioned over half their sales online over the past two years with their online auction events now accounting for sales of over £50 million monthly.
Online auctions offer a number of benefits over the traditional ballroom model for both buyers and sellers. For buyers, it offers the ease and convenience of viewing properties online up to 30 days prior to the start of an event and bidding from one’s own home or office over a 4-day period. For sellers, the online model provides significantly greater and faster exposure for their properties and opens up the process to a new and growing audience not constrained by space, geography, availability and who typically might not attend physical auctions.
Property is somewhat different to other asset auctions where physical attendance often involves inspecting the asset on the day. With the ability to generate exposure online the same day as opposed to producing and distributing a catalogue and being able to hold weekly events without limitation versus the typical model of quarterly events, it appears to call into question the physical ballroom auction model other than for the ‘theatrical’ value.
Zoopla.co.uk online auction events are held weekly with bidding starting Thursdays at noon and closing on Sundays at 6pm.
Visit Zoopla.co.uk/auctions
For more information on our new and innovative auction platform visit:
Zoopla.co.uk launches new live online property auctions in UK
Online property auction success signals shift from ballrooms to living rooms
BUDGET 2010: London and South East to bear brunt of 5% stamp duty band
£12,000,000 – 6 bedroom terraced house for sale Chester Square, London
In today’s budget, Chancellor Alistair Darling raised the stamp duty threshold to £250,000 for first time buyers for this year and the next, which was widely predicted / leaked, but what was less predictable was that this ‘election giveaway’ will be funded by an increase from 4% to 5% on properties worth more that £1m.
Taxing the rich makes a good headline, but it won’t raise much money for the government’s fiscal black hole. Only around 4100 homes sold above the £1m mark in the last year. With the total stamp duty tax take reaching almost £3bn last year, this measure will contribute only roughly 2% extra tax, a pretty tiny amount. Raising stamp duty on £1 million homes has been billed as a cynical move by the government to tax home buyers who tend not to be their core voters.
According to our research the burden will fall overwhelmingly on London and the South East with approximately 57% of all UK homes worth over £1 million located in London and 81% of all million pound homes can be found in London and the South East.
Areas with highest proportion of property millionaires
| Area | Average Property Value | Properties Valued at over £1m |
|---|---|---|
| Kensington (W8) | £1,566,549 | 48.1% |
| South Kensington (SW7) | £1,258,986 | 39.1% |
| Chelsea (SW3) | £1,263,156 | 37.0% |
| Barnes (SW13) | £867,640 | 29.5% |
| West Brompton (SW10) | £974,445 | 27.9% |
| Virginia Water, Surrey (GU25) | £909,340 | 27.5% |
| Notting Hill (W11) | £1,062,531 | 27.0% |
| Belgravia & Pimlico (SW1) | £889,794 | 21.8% |
| Westminster (W1) | £834,318 | 21.3% |
| St. John’s Wood (NW8 | £850,472 | 20.7% |
Source: Zoopla.co.uk
BUDGET 2010: Stamp Duty – 75% of homes valued under £250,000
As widely predicted, Chancellor Alistair Darling has raised the stamp duty threshold to £250,000 for first time buyers for this year and the next (although how will this be defined?) which will be funded by an increase from 4% to 5% on properties worth more that £1m.
Almost 78% of homes sold in in 2009 changed hands for less that £250,000 according to our research with 75% of all UK homes currently valued below the new threshold.
At a regional level only average property values for London and the South East fall above the stamp duty threshold – see full table below.
The changes to the stamp duty threshold will finally lift the average UK home right out of the stamp duty net altogether, making most of the UK the first-time buyer’s oyster. Even in London, first-time buyers now have a fairer crack at the market.
Targeting this at first-time buyers is where it can do most good without costing the earth.
But the big question is how you define a first-time buyer and how would HMRC check whether a buyer qualified for the tax break. For example, someone who has been out of the market, even for a few days after selling their home, could complete a new house purchase and legitimately appear to be a first timer…we await the small print…
Average value of UK homes by region: March 2010
| Region | Average Value |
|---|---|
| Yorkshire & The Humber | £141,888 |
| Wales | £150,309 |
| Scotland | £152,010 |
| North West England | £154,222 |
| North East England | £156,567 |
| East Midlands | £157,253 |
| West Midlands | £168,645 |
| UK | £210,155 |
| South West England | £216,671 |
| England | £217,203 |
| East of England | £225,133 |
| South East England | £269,131 |
| London | £392,322 |
Source: Zoopla.co.uk
Top tips on working with your builder
Spring is finally here and with that warmer, milder weather homeowners traditionally begin to turn their thoughts to building and renovation works.
So, we asked our friends at MyBuilder.com to put together some key insights from the field to ensure you have the best possible experience when working with your builder. They’ve asked homeowners, estate agents, property developers and expert builders and have come up with these top 10 tips to help you get on your way:
1. Quotonomics
Obtain as many quotes as you like. A general rule of thumb is the magic number three – but, when looking at the numbers, make sure you are comparing like for like. Generally, there are three basic types:
- Quotations – the actual price you will pay for the cost of work
- Estimations – a ballpark figure based on a relative understanding of variables at hand.
- Guestimations – exactly what it sounds like, a guess, which seldom works in your favour.
Always ask for a breakdown to ensure clarity on which type you are getting from your builder.
We also recommend asking a builder for references from previous jobs, as well as photos of the work carried out.
2. Vision decision
Map out your vision. Know what you want. Find pictures, even clip images out of magazines to illustrate your wish list – this helps bring a common understanding of the end goal and facilitates the conversation with your builder.
3. Time for tea
Now that you know what you want, tell your builder – specifically! If you make any changes, always document your requests. This helps to make sure that wires don’t get crossed. Most importantly, at the first sign of a problem, address the issue head on with a site meeting. Talk it through sooner, rather than later, to avoid tension or misunderstanding.
4. Rules and Procedures
Right from the start, lay down some ground rules with your builder to help set expectations. For example:
- Ask for a daily start and finish time
- Come up with a procedure for using your washing facilities and kitchen facilities.
- Do you want them to take off their shoes when walking through the house?
5. Nosey Neighbours
It’s a good idea to tell the neighbours what you’ve got going on. Renovations, refurbishments, conversions, and other works, can be messy – and at times cause distress to the surrounding environment. Think about how you want to handle parking, on-site music policies, and who is responsible for deliveries. Having a chat with your neighbours will avoid them getting up in arms about dust or noise.
6. Mind your pets
If you have fuzzy friends living with you in your home, make sure they are secure – builders go in and out many times throughout the day so the chances of your cat or dog making a bolt for it are high!
7. Contracts
Think about what kind of payment plan you want to set up. Cash in hand is a preferred method for some builders, but may cause problems down the line. Stage payments, bank transfers and cheques are the ideal way to monitor and confirm that payments have been made.
8. Certification
At the end of the project, it’s a good idea to ask for a walk through with the builder. Hold onto a retainer for snagging, until building control has signed off the work and you’ve received all necessary paperwork – any certification for council / electrical compliance certificates should be issued prior to payment.
9. Insurance
It’s always a good idea to ask to see a copy of the builder’s insurance. If you want to be really thorough – check with the provider in relation to status and expiry dates and make sure your project is covered throughout the project time period.
10. Materials
If you’re having the builder manage the materials, make sure they are getting the kind of quality that you expect. Better still, ask for detailed descriptions in the quote. Before you hand over the final payment ask for guarantees on the products. Check with your local council to be sure you have the documentation that you need.
About
If you don’t know of the website already, MyBuilder.com is a new way to find reliable builders and tradesmen in the UK. You just post the job you need doing on the site for free and local builders get in touch to provide quotes. The best thing is that you get to read previous customer reviews for the builders you meet on the website.
Property near racecourses
With the annual Cheltenham Race Festival starting today, we’ve got five properties to spend your winnings on that are located near to other racecourses in the UK.
Admittedly, you’d need to win big to afford these!
Cheltenham Racecourse,Cheltenham, Glos
1. £1,150,000, seven bedrooms, Pittville Crescent, Cheltenham, Gloucestershire
Average home value in Cheltenham: £243,465
Property for sale in Cheltenham
Thirsk Racecourse, Thirsk, North Yorkshire
2. £995,000 – 4 bedroom house, Bagby Grange, Thirsk, North Yorkshire
Average home value in Thirsk: £217,206
Property for sale in Thirsk
Sandown Racecourse, Esher, Surrey
3. £925,000 – 5 bedroom house Pelhams Walk, Esher, Surrey
Average home value in Esher: £670,495
Property for sale in Esher
Carlisle Racecourse, Carlisle, Cumbria
4. £690,000 4 bedroom St. Pauls Square, Carlisle, Cumbria
Average home value in Carlisle: £136,283
Property for sale in Carlisle
Exeter Racecourse, Exeter
5. £875,000 5 bedroom house Rockbeare, Exeter
Average home value in Exeter: £219,508
Property for sale in Exeter
