A new iPhone app has been released this week, which lets users check property market information on the go. The app, released by the property portal Mouseprice.com, is the first of its kind to be relaesed in the UK and allows you to check the value of any property in England and Wales, along with a selection of other useful property related information.
Mouseprice.com has released the following instructional video:
There is an excellent new service, currently the only one of its kind, that can help with council tax banding valuation. Council tax band reports is run by Ben Ricardo, whose team put together reports to see whether or not you are paying too much for your council tax. This seems to be a surprisingly common problem, as the original council tax assessments were somewhat rushed.
For a sum of £9.95 you receive a selection of useful information, such as your neighbours’ council tax bands, lists of properties that are worth more than yours, but are in lower tax bands and properties that are worth less than yours, which are in higher tax bands. The report is really comprehensive and can be used as evidence for a reassessment. The website also gives good advice on how to go about lodging an appeal. I think this will prove to be a highly useful service for anyone worried that they’re paying too much council tax and should at least give us a little peace of mind!
The latest unemployment data from the ONS (published on 12 August 2009) does not make for happy reading:
“The unemployment rate was 7.8 per cent for the three months to June 2009, up 0.7 over the previous quarter and up 2.4 over the year. The number of unemployed people increased by 220,000 over the quarter and by 750,000 over the year, to reach 2.43 million.”
Let us hope that unemployment is truly the lagging indicator (i.e. the last indicator to start improving as we come out of recession) and that it will turn the corner in the not too distant future. If this doesn’t happen the impact on house price recovery will be obvious.
It looks like the rate of house price decline has now slowed down considerably. In a year’s time we may even see an annual increase. That is unless we experience a ‘double dip’ recession and prices start falling again. A key indicator is unemployment data. What are your thoughts.
Property valuation experts all encourage buyers to stop quantifying the size of flats and houses by their number of bedrooms. Instead of this, buyers should take the more statistically rigorous approach of measuring floor space.
It’s often hard to gauge how big or small a property is compared to others. Some are cleverly designed or just deceptive. Working out the net internal floor area and applying a cost-per-square-foot gives a more accurate basis for valuations, rather than gut feel or guesswork.
Internal floor area is a more reliable indicator of value than bedroom numbers
Always ask your estate agent the internal floor are e.g. number of square meters (sqm) or number of square feet (sqf)
Price per square foot £/psf (price per square meter £/sqm) is the best way to compare value between two or more properties
Many factors can affect the value:
The smaller the property, the higher the cost-per-square-foot
In new build properties, £/psf is higher on top floors because of the views
Location will have a big affect on £/psf
Condition, interior, lease-length, ceiling height, service charges and ground rent can all have an effect.
With the current condition of the UK housing market and various sections of the UK media predicting a further deterioration in the property market, what is there to do to save your properties value other than sell? There is one option to consider before calling up your local estate agent- Spread-Betting.
The spread-betting firms allows you to bet on the rise or fall of prices in either the UK as a whole or on 11 individual regions. The firm offers a range on something happening, such as the range of change of average property prices. This range of change is referred to as the “spread”.
As a betting customer, you can bet higher or lower depending on which direction you believe the market will head over the next four quarters. If you guess the correct direction, you win! And what you win depends on how far the result of the property market change deviates from the spread times how much you bet.
Example:
If the average property price is currently £145,000, the betting firm may offer a spread of say (£140-£150k)
If you believe the market will fall you need to ask yourself, “by how much will it fall?”
Say you think the market will fall to the average property price being roughly £135,000
So you bet £1000 on each point decrease :
If the market does fall, you will win your bet times how many points below the bottom of the spread the final average price has become. For example, if the average price for a property is now £136,000, which is 4 points below the bottom of the spread, you would win 4 X £1000= £4000
All of the profits are tax free and all costs to you are included in the spread. Finally something with no hidden charges!
A house price index provides the basis for the spreads offered by IG Index. The index breaks down its property price information nationwide and regionally which is what allows you to bet two different ways.
As of right now, IG Index has suspended the acceptance of bets and have briefly closed the books on the property market betting. Because of the overall consensus that the UK property market is headed towards a creash, the only bets being placed have been for a decline in the price indices. Until the next quarter, you will not be able to place your bet with IG Index.
But once those doors are open again, make sure you’ve informed yourself on the price indices and property prices and search for regional and nationwide property sales prices. That is of course unless the fear of a market crash has already forced you to sell as the sole way to prevent a loss.