Property World

Beat the property slump: House prices

2008-06-17T08:10:00.000-07:00

# House prices

One final shove swings the front door wide open. I am hit by the foul smell of stale cat pee and the dank gloom of a house that looks untouched for decades. It is exactly what I've been looking for.

For years I've gorged on Britain's unhealthy diet of property shows. I've watched with envy as amateur investors stumble their way to tens of thousands of pounds in profit. Desperate to climb aboard, I once upped my offer on an east London wreck from the front line while reporting in Afghanistan. As the bombs rained down from the B52s the biggest blow was a distant London agent telling me it had gone to a higher bidder. His only apology was for the bad line, asking whether the "banging" in the background was at my end.

But now it's January 2008, and a friend has given me first refusal on an inherited, foul-smelling, ex-council house in Edgware, north London. Both Nationwide and Halifax predict a year of zero growth, but no falls. It's a very neat street and houses sold here for £285,000 last autumn. I borrow against my home and buy the sad wreck for £200,000.

I know the property market is slowing but figure that even in a static era, I will be able to add lots of value. The total refit should cost about £17,000. I will sell at £249,000 - just below the stamp duty threshold. I can already hear the property show voiceover: "Mark's made a cool £22,000 profit. Not bad for a first time investor."

I start work in mid-February. My mum pops by to inspect what I have risked my lovely home in Hackney for. The stench sends her running into the garden. As she recovers, a kindly neighbour ticks her off for going in without a mask and protective clothing. The house is notorious. Getting people in for quotes is impossible until I conquer the smell. On the internet I discover and order a "pee detector strobe" from America. Like a CSI agent I spend the hours of darkness waving the strobe over floorboards. It works, showing up the glowing yellow crystals. I rip the offending boards out. The smell is gone.

Apart from boiler, central heating and double-glazing, I'm doing all the work myself. It's daunting and depressing. Property shows love the contrasts of before and after. They do not show the weeks in between, with no heating, only the radio for company and a bucket for a loo. Who ever saw Sarah Beeny slopping out? Nothing goes to plan, walls aren't straight; pipes don't always lead where you think they do. The removal of a single old nail brings rubble tumbling down.

Telegraph writers win property awards

2008-06-17T07:21:00.000-07:00

Writer Caroline McGhie has been named National Newspaper Property Journalist of the Year.

McGhie, a regular contributor to the Sunday Telegraph's Home & Living section, also won the award for Property Scoop of 2007 for her feature 'The Real Cost of a Commute'.

Judges at the 2008 headlineproperty journalism awards also named London Property writer Sarah Lonsdale Environmental Property Journalist of the Year.

The ceremony took place at The Brewery in the City of London. The awards were among 15 categories deliberated by more than 40 judges.

Hit by slowdown, UK property investors look to India

2008-06-04T06:13:00.001-07:00

As property prices continue their downward spiral in Britain, investors here are looking to India, which is increasingly seen as a hotspot due to rising real estate prices across the country.

Every week, leading mortgage lenders and estate agents publish figures of declining prices, higher number of houses on the market, fewer buyers and smaller numbers of new mortgages being advanced.

Except in several areas of London, property prices all over Britain have recorded at least a two per cent drop in the last year due to the credit crunch.

The slowing of Britain's property market has led to several individual and institutional investors looking to India and other international hotspots.

MS Map and Esate Agents

2008-05-21T01:05:00.000-07:00

Invista sees 5-10 percent European property fall

2008-05-19T02:51:00.000-07:00

LONDON (Reuters) - Property funds firm Invista Real Estate says commercial property prices in mainland Europe will fall by an average 5-10 percent this year and probably by more in Madrid and Barcelona.

In an interview on Friday, Tony Smedley, who heads Invista's stable of continental European funds, said property valuations were unlikely to tumble on the mainland as much as they had done in the UK, but they had nonetheless begun to adjust downwards.

"My sense is that valuations have come off a bit but there haven't been the transactions to evidence that," Smedley said.

He said there was scope for commercial buildings such as offices, malls, and industrial warehouses to fall by 5-7 percent in Germany, regional France, Belgium and the Netherlands, by 8-10 percent in Paris, and by more than 10 percent in Spain.

Average commercial property valuations in the UK are already down almost 17 percent from their peak last summer but the extent of the post-credit crunch real estate correction in the rest of Europe is less clear.

Invista is majority owned by UK mortgage bank HBOS (HBOS.L: Quote, Profile, Research) and has 8.7 billion pounds in assets under management.

Smedley said about 1.5 billion euros (1.2 billion pounds) was invested in continental Europe, with two-thirds of that in France and around half in the Invista European Real Estate Trust (IERE.L: Quote, Profile, Research).

REFINANCING

He said the Trust was negotiating with several banks to bring forward the refinancing of a 460 million euro credit facility with HBOS-owned Bank of Scotland which was due to expire in December.

London hit by property slowdown

2008-04-09T12:02:00.001-07:00

Research from estate agency Knight Frank shows that the number of houses being sold in the capital is at its lowest level for over 10 years.

The agent said prime properties in Central London have been affected. Sales of expensive homes from January to March were down by 20% compared with last year’s figures.

In the same period, there were just 1,160 sales at above £1 million in London compared with 1,450 in the first quarter of 2007.

As a result, sellers are being forced to reduce their property price by hundreds of thousands of pounds.

In the first quarter of 2008, approximately 9,000 properties were sold in London. Last year, homes were being sold at the rate of 16,000 a month. Mouseprice.net, the property information website, said sales have been slower than in any period since 1995.

For example, a property in Paultons Square, Chelsea, has had a quarter of a million shaved off its original asking price of £3.5 million in an effort to find a buyer.

Miles Shipside of property website Rightmove said many sellers are trying to cash in on the equity they have made from the boom of the last 2 years. However, pricing your home on this basis is ignoring the worldwide financial turmoil, increased competition from other unsold properties and the challenge buyers now face in getting a mortgage, added Mr Shipside.

It’s human nature but in the current market sellers should price below their competition to avoid a larger price drop later in the year, said Mr Shipside.

According to Seema Shah of analysts Capital Economics, prices in the South-East and London fell by 0.7% in January and 0.5% in February.

The latest London View report from estate agents Cluttons said properties at the top end of the market are still selling quickly despite a cooling property market.

The report said high-end properties and those in desirable locations have, to date, been immune to the slowdown that is affecting the rest of the property market. These homes are selling quickly and they are going to best bids.

Mortgage squeeze: How is it affecting you?

2008-04-02T13:19:00.000-07:00

Mortgages are getting harder to come by. First Direct has become the first high-profile lender to close its doors to new customers.

The bank - one of the country's top 20 home loan providers - gave only five hours' notice that it was effectively closed to new business on Tuesday.

The move came as figures showed that more than 90 mortgage products a day have been scrapped over the past week as lenders try to hoard cash. At the end of March there were 5,785 products available to borrowers - there are now less than 5,320.

It is now also almost impossible to get a 100 per cent mortgage, with Scottish Widows wanting at least 5 per cent deposit for young professionals such as doctors and accountants - previously they were able to borrow 110 per cent of the property's value.

Experts warn that more than two-million home owners on variable interest rate deals could find that their mortgage bills increase if other lenders follow suit.

The hardest hit, however, are first-time buyers and the estimated three-million home owners who are due to refinance their mortgages over the next 18 months.

We want to know if you have been turned down for a mortgage or are finding it hard to get an affordable deal from lenders?

Sabban Property Investments launches unique internship program in partnership with Birmingham City University

2008-03-27T06:47:00.000-07:00

Sabban Property Investments (SPI) has announced the launch of a unique internship program in partnership with UK-based Birmingham City University (BCU), which will involve students in the construction of the Sabban Towers. Six international university students vying for a one-year paid internship in Qatar will put into practice the theory of construction and planning in a 12-day training program at the construction site, where they are expected to gain a broader understanding of the regional property development landscape. After an intensive course in the core areas of construction, real estate and planning development, the two most outstanding students will be awarded the coveted remunerated work placement and join the construction experts working on the project.

The leading Dubai and Qatar based developer invited students from BCU’s Property, Construction and Planning Department to submit their proposals on how they would add value to SPI as an organisation and comment on the booming real estate sector in Qatar, in addition to their study on the culture of the country and their views on sustainable construction and design. Following an intensive selection process, SPI selected the pool of winning students, which include Quantity Surveying majors Andreas Kounass and Imran Salam, and Planning and Development student Rosanna Sterry; in addition to Benedict Gannon, who is in his second year in Real Estate Management; Thomas Nicholls, a Building Surveying scholar; and Michaela Campbell Lynch, who is completing her degree in Architectural Technology.

“This work placement program, which we have undertaken through our partnership with Birmingham City University, is a part of SPI’s Corporate Social Responsibility policy to further our involvement in the development of the education sector by nurturing talent through experience,” said John Browne, MBE, Managing Director, SPI. “As an alumnus of BCU, I can attest to the exemplary academic training, which the selected students have been exposed to on campus, and our goal now is to match their theoretical knowledge with real life professional experience. Through this initiative, we are not only showing real interest in the students’ future but also, looking to the growth of SPI and the industry as a whole.”

First timers' stamp-duty up 82%

2008-03-13T07:40:00.002-07:00

The average stamp duty bill for first-time buyers has almost doubled over the last five years, says a report from mortgage lender Halifax.

The average bill in 2007 was £1,751 compared with £960 in 2002.

In the south-east, south-west and east of England almost all first-time buyers paid stamp duty, while in northern regions only 42% were liable, it said.

The Treasury pointed out that half of first-time buyers will pay no stamp duty this year.

The lowest, 1% tax band hits homes worth between £125,000 and £250,000.

'Raise thresholds'

Homes valued between £250,000 and £500,000 attract a 3% charge and properties worth more than that are taxed at 4%.

Although the government has raised the threshold at which buyers pay 1%, it has not kept pace with the surge in house prices.

"Stamp duty has again become an issue for first-time buyers because the stamp duty thresholds have not kept pace with house price inflation," said Martin Ellis, Halifax chief economist.

"We call on all political parties to raise the stamp duty thresholds to compensate for house price inflation over the past decade," he added.

But the government defended its record.

Mortgage fraudster banned by FSA

2008-03-13T07:40:00.001-07:00

A mortgage fraudster from East London has been banned by the main City regulator from anything to do with the financial services industry.

The Financial Services Authority (FSA) said Andrew Kiplimo was "not a fit and proper person in terms of honesty, integrity and reputation."

Kiplimo, who has disappeared from view, fed bogus mortgage applications to potential lenders.

The FSA said its action was part of a wider investigation of mortgage fraud.

Introduction fees

Kiplimo, who acted as a mortgage "introducer", was accused of making up the pay and employment details on mortgage applications, and also of using false accounts and tax

Surveyor gloom close to a record

2008-03-13T07:38:00.000-07:00

The number of UK surveyors reporting house price falls in February was close to the historic level of June 1990.

Cautious homeowners have caused housing stockpiles to rise to levels not seen for a decade, the Royal Institution of Chartered Surveyors (Rics) said.

Some 64.1% more surveyors reported a fall than a rise in house prices in February - up from 54.7% in January.

But the survey said Scotland was bucking the trend, with 25% more reporting price rises - up 18%.

Highs and lows

The survey showed the UK trend had continued for the seventh consecutive month and was close to the June 1990 low, when 64.5% more surveyors reported house price falls than increases.

But the picture in Scotland mirrored economic data coming out of the country, showing a rise in the balance of surveyors reporting price rises from 7% to 25%.

Across England and Wales, enquiries from would-be new buyers are still dropping fast and fell for the 15th month in a row, suggesting a continued slowdown in the market is likely in the coming months.

"Many would-be-buyers are either struggling to raise the necessary finance to precipitate a move or are exercising caution in light of current economic uncertainty," said Rics.

News in brief: House prices fall

2008-02-03T04:42:00.000-08:00

House prices have fallen for the third month in a row, dropping 0.1% in January according to Nationwide. Annual house-price inflation is down at 4.2%, the lowest rate for two years, and the average house price has dropped to £180,473 from £182,080 in December.

Dearer energy

Scottish Power has become the latest energy supplier to announce price rises. The group, which has 5.2m customers, said electricity prices will rise by an average of 14%, with gas prices up by 15%. The move follows rises at EDF, British Gas and Npower.

Footsie boosted by mining stocks

- The FTSE 100 closed up 160 points at 6,029, boosted by takeover talk in the mining sector centred on Rio Tinto.

Over the past 12 months the index has fallen by 2.8%

Over three years the index is up by 24.3%

Over five years the index has risen by 69%

FKI had the biggest gain, up 39% to 67p

Vanco fell the most, down 44% to 101p

Why we avoided the tie-in mortgage trap

2008-01-31T01:14:00.001-08:00

The scourge of all householders - mortgages that lock borrowers into high interest rates after a special deal has come to an end - is making an unwelcome comeback.

In recent years, these much-criticised loans had all but disappeared. But as lenders struggle to shore up profits in the wake of the credit crunch crisis, the deals are starting to emerge again to haunt homeowners.

A number of high-profile lenders have reintroduced the deals - known as loans with 'overhanging redemption penalties' - that offer low initial fixed-rates for a set period.

Borrowers are tied into paying a higher standard variable rate for years after that special rate has expired. And the only way they can extricate themselves is by paying a stiff redemption penalty.

Barclays-owned Woolwich and building societies Norwich and Peterborough and Market Harborough are among those offering these mortgage deals.

Market Harborough tempts borrowers with a rate of 2.85% fixed for two years, but they are then tied in for a further three years during which they must pay the lender's SVR - currently 7.55%.

This means a homeowner taking out a £100,000 interest-only mortgage would pay £237.50 a month for two years. But then, assuming the mortgage rate has not changed, monthly payments would nearly treble to £629.

A borrower trying to get out of the loan in years one to five would be required to pay a penalty equivalent to between four% and seven% of the outstanding mortgage sum borrowed.

The £100,000 borrower would pay a penalty of £7,000 in total in years one, two and three, falling to £5,000 in year four and £4,000 in year five.

Market Harborough says the loan appeals to many first-time buyers looking to keep down initial mortgage costs. It also says that borrowers are left in no doubt about the length of time that early redemption penalties apply.

But David Hollingworth, head of communications at mortgage broker London & Country Mortgages in Bath, Somerset, says: 'This deal is prehistoric in structure. We rarely, if ever, recommend mortgages with such costly tie-ins.

'Borrowers considering such loans must be aware of their inflexible nature and question their real value.'

How To Get The Right Flooring For Your House

2008-01-13T11:10:00.000-08:00

Everyone dreams of living in a beautiful house. Once you have the house, you're often bewildered with different decorating ideas. It's a good idea to start at the basics. Good flooring forms the foundation of any decorating theme. So it's vital to get the flooring right. One aspect is selecting the right materials.

The various rooms in your house may need a different kind of flooring. You have to pick the flooring depending on the use for the room, your lifestyle and your finances. Before you get floored by the number of choices available in the market, it's a good idea to know what youre looking for:

Your location

The location of your house is an important ingredient in your purchase decision. Do you live in a warm or cold climate? Do you have flooding or fires near your area? Studying these factors will help you make the right decision. Here's an example. Knowing that your house is situated in a moist area will give you a wide choice of flooring to choose from. You should probably pick material that will not rot away like stone, granite or marble. However, if you live in colder climes, then you can use a carpet or plain linoleum for the kitchen.

Your tastes

Your house should reflect your style and tastes. Do you like contemporary designs or a more traditional look? If your budget allows it, a hardwood flooring goes with almost any interior decorating idea. Bamboo floors or laminated floors are a cheaper option. Youll find it easy to clean a laminated floor as a good wipe will take care of it. You dont have to use oil or excessively scrub it.

Check the foundation

You need to check the foundation of the house before you buy the flooring. You will want your flooring to remain firm and stable and not cracked or chipped. Firstly, fix the foundation of any defects. Only then will the new flooring look good. If there is going to be quite a lot of family traffic you will want to ensure that it is resistant to wear and tear.

Mortgage approvals still falling

2008-01-06T05:17:00.001-08:00

The number of new mortgages being approved for home buying fell again in November, says the Bank of England.

Its latest figures show that just 83,000 new mortgages were approved for home buyers last month.

That was down from 89,000 in October and was the lowest monthly figure since the start of 2005.

The further drop suggests that the recent slowdown in the UK housing market is likely to continue well into the New Year.

"This is further evidence of a sharp downturn in activity in the housing market," said Simon Rubinsohn of the Royal Institution of Chartered Surveyors.

'Generally fall'

Although house prices in the UK ended 2007 roughly 5-8% higher than they started, prices started falling towards the end of the year under the impact of higher interest rates.

Soaring prices have also pushed the cost of homes out of reach of many potential first-time buyers.

As a result, many experts and commentators now expect that prices will fall generally this year or, at best, stay level over the course of the next 12 months.

Although the Bank of England recently cut interest rates, and is widely expected to do so again this year, the housing market is now feeling the effect of the increases in borrowing costs that the Bank imposed from the summer of 2006 onwards.

However, the Council of Mortgage Lenders (CML) warned that it was still unclear if lenders would have enough funds to meet the expected demand from borrowers this coming year.

"The credit crunch has resulted in funding difficulties for a number of mortgage lenders, reducing their capacity to lend," said the CML.

"[But] the softer tone to house prices in recent months and uncertainty over the future course of house prices is likely to deter the demand for house purchase.

"Indeed, this factor is probably already at work," it said.

Cautious lending

This week the Bank of England reported that the recent financial crisis in the banking system had led banks to be more cautious and cut back their lending, whether it be to home buyers, companies or people with credit cards.

Part of that process has seen a drop in the number of people cashing in on the increased value of their homes to borrow more money.

In November there were just 60,000 such loans secured on a property, the lowest number since the start of 2001, and exactly half the record number of 120,000 that were lent in October 2003.

This suggests that consumer spending generally will slow down this year as much of this borrowing, known as housing equity withdrawal, goes to subsidise people's general spending.

"Housing market activity is now slowing markedly in the face of stretched affordability as well as the tightening lending practices resulting from the credit crunch," said Howard Archer of Global Insight.

"This ongoing evidence that the housing market is currently slowing markedly maintains pressure for another interest rate cut sooner rather than later," he added.

First-time buyers 'at fresh low'

2007-12-23T15:07:00.000-08:00

The number of first-time home buyers in the UK has dropped to its lowest point since 1980 as house prices soar, mortgage lender Halifax says.

An estimated 300,000 first-time buyers entered the market in 2007, 15,000 fewer than a year earlier.

The average house was out of the reach of a typical first-time buyer in 96% of UK towns, Halifax found.

The average price paid by a first-time buyer for a property increased by 15% during this year to £175,093.

Priced out

The price has soared 82% over the past five years, it added.

"Rising property values have priced many potential first-time buyers out of the housing market," Martin Ellis, chief economist at Halifax.

"When they do enter the market, first-time buyers are now more likely to be in their 30s rather than their 20s and buy a flat rather than a terraced house."

Henley-on-Thames was the UK's least affordable town, with an average property price of £642,672 - more than 13 times the average income of first-time buyer households in the area.

The big council house sell-off

2007-11-19T03:00:00.000-08:00

Camden council has announced plans to sell off 500 of its existing rented properties, in order to pay an estimated £242 million repair bill for the rest of its housing stock because the Government is refusing to provide the cash. The news emerged as the Queen’s Speech in Parliament promised the building of millions more homes and an increase in council-house stock.

Under the headline Investing in Camden’s Homes, the council is advertising its intention to sell vacant homes to private buyers to raise money for the repairs. But tenants are opposed to the plan. Members of the Defend Council Housing campaign are now busy knocking on doors and getting people mobilised against it.

Liberal Democrat council leader Keith Moffitt said there was no option but to sell, as the Government would not give Camden the funds needed to bring council homes up to its own decency standards. It is estimated that £242 million will be required for this. The Government has made financial support conditional on the council privatising the management of its housing stock.

A spokesman for the Department for Communities and Local Government said: “We have not yet taken a view on Camden’s proposals. Our policy in general is to make it easier for councils to build homes, and we are expecting all areas to increase the number of social homes.”

Liberal Democrat housing spokesman Paul Holmes MP said: “This is the Government’s fault for refusing to give Camden the money it needs for repairs unless it privatises the management. The tenants are sensibly opposing this, and the Government is punishing them for not toeing the line.”

Surge in 100% mortgages means thousands risk negative equity

2007-10-31T02:54:00.000-07:00

Thousands of first-time buyers could find themselves in negative equity following a big increase in the number of 100% mortgages available, according to new research issued yesterday.

An estimated 33,000 first-time buyers borrowed the full value of their property, or in some cases more than it was worth, between January 2006 and August 2007, said the mortgage website mform.co.uk. Such deals are allowing people to get on to the housing ladder without having to raise a deposit.

But earlier this week, the body representing mortgage lenders warned that the housing market was about to stall, and some commentators believe this has already begun. A report from the website Hometrack, published on Monday, claimed house prices fell by 0.1% during October - the first fall for two years. There has also been a warning that home repossessions could rise by 50% next year.

Homebuyers who have recently taken out 100%-plus loans are particularly vulnerable to price falls, as they have no equity to cushion them if there is a drop in the value of their home. In some cases, even a small fall in house prices would leave them owing more on their mortgage than their home is worth.

Rising property prices have meant that people need to borrow even more money to get the property they want, and lenders have responded by dramatically increasing the number of 100% mortgages available, according to mform.co.uk

"In April this year, our research showed there were 92 different 100% mortgages to choose from, but by October 1, this had increased to 160," said Francis Ghiloni, the site's marketing and business development director. "If house prices fall, as some commentators predict, those homeowners with these mortgages are likely to encounter negative equity."

The high-street bank Abbey recently began trialling the "100% Plus Mortgage", which, in addition to allowing people to borrow the full value of their property, enables them to borrow up to a further £25,000, secured on their home. Abbey suggested the money might be used for "renovating your home, buying a new car or consolidating all your debts".

Property viewed 'safer than cash'

2007-10-21T04:08:00.000-07:00

A majority of British people believe buying property is now a safer place to put their money than saving with a bank or building society.

Research for the BBC Two series, The Truth About Property, found 53% of respondents believed owning property was safer than cash.

The poll took place in the aftermath of the Northern Rock crisis, the first run on a British bank in nearly 150 years.

The findings come despite mounting evidence of a slowing housing market.

Booming house prices in Inverurie

2007-10-21T04:07:00.000-07:00

Inverurie has the fastest-rising property prices in Scotland, according to new figures.

The Aberdeenshire town has joined Aberdeen and Edinburgh as the only places in Scotland where the average cost of a home is over £200,000.

The Bank of Scotland survey showed householders in Inverurie have seen their property value rise by 35%.

But the town's councillor warned that the housing boom also brings hidden costs to the community.

According to the bank's figures, average house prices across Scotland as a whole rose by 14% in the last year to just over £141,000, 3.5% above the UK average.

Bank of Scotland economists said the market in Inverurie is being driven by the high prices in Aberdeen which is creating a ripple effect to the rest of Aberdeenshire.

'Younger families'

But Councillor Richard Cowling, who represents Inverurie on the local authority, warned many people were being priced out of the market.

He said: "I think initially people will be delighted that they own expensive houses but I think it is going to cause a lot of grief and a lot of problems at the lower end of the scale and for those attempting to get on the property market.

"Currently we are seeing a large influx of younger families. It is having an impact on our education and our schools."

Concerns have also been raised that migrant workers who have increasingly found work in Inverurie will be priced out of the housing market.

Other services in the town are also being put under pressure, including its only GP practice, which is now the biggest in Scotland. From - BBC NEWS

Britain's deflating buy-to-let bubble

2007-10-13T03:26:00.000-07:00

It sounds too good to be true.

Take out a mortgage to buy a property and then, while the rent covers the mortgage repayments, the capital value of the property increases year on year.

For many years, that was the way it was, but now there are signs that the years of easy money may be coming to an end.

In 1996, when buy-to-let mortgages were first launched, only 20,000 were taken out. By June 2007 this figure had grown to 940,000 and the total amount borrowed to £108bn.

It has been phenomenally successful and one of the best performing investments around.

Many buy-to-let investors have made fortunes as house prices increased and mortgage rates remained low.

One such investor is Raj Shastri who has seen his initial £950 investment grow over the last five years into a portfolio worth £8m.

Slow-down in NI's property market

2007-10-13T03:24:00.000-07:00

Figures on mortgage lending obtained by the BBC show a significant decline in the number of home loans for house purchase.

According to the Council of Mortgage Lenders (CML), 16,500 mortgages were granted in Northern Ireland between January and August last year.

Three thousand fewer loans were made in the same period this year - a 19% drop.

In August, banks and building societies loaned £193m in mortgages to local homebuyers, down from £270m in the same month last year - a decline of 39%.

These figures do not include re-mortgaging, they cover first-time buyers and people moving from one house to another.

Sources in the banking industry say some of the small, independent mortgage brokers who entered the market during the house price boom may not survive the slow-down.

Two recent house price surveys - from the Halifax and Nationwide - showed that the market locally has cooled.

If the data is taken togther, it suggests that house prices in the last quarter stayed level.

It is understood that some developers have stopped building new homes in recent weeks, as house sales have tailed off.

Surveyors see house price falls

2007-10-11T03:32:00.000-07:00

House prices are continuing to turn down, says the Royal Institution of Chartered Surveyors (Rics).

Its latest survey says UK house prices in September generally fell again, with more of its members reporting a fall in prices locally than an increase.

It said enquiries from new buyers had fallen for the tenth month in a row.

Rics blamed the downward trend on a combination of factors, such as higher interest rates and lenders tightening their lending criteria.

"A major correction in the market seems unlikely while economic growth is above trend and employment conditions remain buoyant," said RICS spokesman Jeremy Leaf.

"The combination of rising interest rates, the introduction of home information packs (Hips) and volatility in the financial markets resulting in tightening of lending criteria, has certainly affected the confidence of buyers and sellers," he added.

Rics said that the downturn seems to be severest in East Anglia, and the West and East Midlands, though prices are still going up in Scotland and London.

Lawsuit: Layoffs at Foxtons broke law

2007-10-07T01:17:00.000-07:00

Two former Foxtons Inc. employees said the real estate company violated federal law when it didn't give them and their co-workers at least 60 days' notice before laying them off, according to a lawsuit filed Thursday in U.S. District Court.

Marco Cimmino of Neptune and Abram Covella of Pine Beach, who worked as home consultants, filed the lawsuit on behalf of a class of workers. They're seeking to recover lost wages and benefits, said attorneys David A. Krenkel and Lisa C. Krenkel.

West Long Branch-based Foxtons, a real estate broker that billed itself as a low-cost alternative, last week said it couldn't continue to operate in the faltering real estate market. It laid off 350 of its 380 employees and said it plans to file for bankruptcy.

The question: Did Foxtons violate the Worker Adjustment and Retraining Notification Act, which requires companies with 100 or more employees to give workers at least 60 days' notice before a mass layoff?

Foxtons could not be reached for comment. But the law has caveats. Employers don't need to give advance notice if they are the victim of a natural disaster or unforeseen business circumstances, or if they believed giving notice would have ruined their chances to obtain financing. More>>

London Design Festival

2007-09-20T01:30:00.000-07:00

The fifth London Design Festival (LDF) - a dizzying design jamboree of more than 200 happenings in shops, galleries, outdoor spaces and erstwhile empty buildings all over town - runs from 15 to 25 September, says Barbara Chandler

Head first to the Festival Hall on the South Bank, SE1, which is this year's "hub" or info point. Admire the sparkling chandeliers from festival sponsor Swarovski, then look for staff wearing red T-shirts with LDF logos - they will tailor a personal route. You can pick up a chunky free booklet with a full programme at any festival venue.

From Monday 17 to Wednesday 19, there are free energy-saving light bulbs to be had in Trafalgar Square. And reinforcing the eco-message will be designer Tom Dixon's huge chandelier, featuring 500 lights made from recycled plastic suspended from a slimline frame. These will be given away on Wednesday at 5pm.

Several key events run from Thursday 20 to Sunday 23 September:

Tent London is a huge amalgam of shows in the Old Truman Brewery (Brick Lane, entrance on Hanbury Street, E1), which will be crammed with edgy new talent, avant-garde international brands, vintage furnishings for sale, and more. Admission: £10 for adults; £5 for under-16s; free for under-sevens. www.tentlondon.co.uk

Designers Block is a sensational assembly of international alternative talent, as well as dramatic live glass-making demos that will use up all the empty bottles generated by the event. Sunday is family day. Out the back, in the spacious yard, will be cosy igloos made on site using p‰pier-machŽ made from discarded newspapers. The Nicholls & Clarke Buildings, 3-10 Shoreditch High Street, E1. Admission: £5 for adults; £3 for concessions. www.designersblock.org.uk

Both Liberty and Selfridges have their own impressive shows, and there are also idiosyncratic events in lots of London's smaller shops. For example, at Twentytwentyone in EC1, you can bid for a Fairtrade organic shopping bag decorated by one of 40 international star designers. www.twentytwentyone.com