PROPERTY NEWS
Average price of houses top £352,100             House-hunting, husband against wife
House Price Falls: Nationwide BS                       Steer clear of cowboys
House Prices still falling
House Price Rises: 2nd Qtr 1998
Uninsured House Risks


House Prices Show Falls according to Nationwide Building Society
September 1998
The housing market bubble seems to have burst, as figures show that house prices fell for the second consecutive month. The Nationwide Building Society said house prices fell by 0.2% in September, slightly less than the 0.5% drop that was seen in August.But even with this downturn, property prices are still 7.5% higher than this time last year.  Paul Sanderson, Nationwide's head of  research, said: "The fall in prices recorded in September was slight, but after August's decline this should be seen as further evidence of  changing market conditions.  "Buyer demand has clearly weakened over recent months, although a softer trend in prices may have been reinforced by a modest increase in properties coming on to the market. " He added that thisslowdown had been expected, and had been led by a drop in house prices in the South East and London. Other house price surveys also indicate that property inflation is slowing down, and in some cases house prices are declining on a monthly basis. But most commentators agree that this does not signal a housing recession. House prices should continue to grow, but at a more modest rate.  Mr Sanderson said that activity in the housing market was expected to remain reasonably resilient.  But he added: "It will not be immune to the inevitable slowing in the wider economy already under way. House price inflation is likely to continue to ease, with sales levels remaining at best flat, well into next year."

---

House prices still falling
London house prices continued to fall during the final quarter of 1998 and rental values were down for the first time in six years, according to FPD Savills Research. A 2.8pc fall in property prices over the final quarter of last year reduced overall growth in 1998 to just 2.4pc.

FPD Savills expects demand for prime central London property to remain subdued during 1999 and is forecasting price falls of 5pc for the year ahead. "Lower levels of demand and a rising supply of newly built property for sale will continue to undermine values in 1999," said Yorlande Barnes, director of FPD Savills Research.

Houses registered the greatest fall in price in the last six months of 1998, 4.5pc, compared with flats, which fell by 2pc. This reflects the fact that house prices had become more overheated than flat prices in previous years and so had further to fall back.

FPD Savills expects the projected sharp slowdown in UK economic growth and a weak global economy to impact further on buyer demand. There is also likely to be little demand from investors in the coming year as poor capital growth prospects combine with historically unattractive yields.

Residential rental values have also fallen for the first time since 1992. Average rents fell by 2.6pc during the final quarter of 1998 reducing the overall growth for 1998 to 7.3pc. This compares with 11pc a year earlier.

Falling rents are unlikely to persist in the long term and downward pressure should ease towards the end of the year, said Richard Donnell, of FPD Savills Research. "In the short term we expect average rental values to fall by up to 5pc over the next six to nine months," he said.

---

House-Hunting, husband against wife
When a couple choose a new family home is it the wife, who typically spends more time in the home, or the husband, who usually funds it, who holds the trump cards? 

Estate agency Knight Frank has canvassed the experiences of its negotiators and an interesting picture emerges.  In London, where choice is wide and varied, wives or girlfriends usually undertake the task of sorting agents' particulars and view a large number of properties. This gives them a feel for the market and the compromises they will have to make on accommodation, area and budget. They then short-list possible properties, and it is often at this stage that husbands or boyfriends start viewing.  Having had no opportunity to gain a feel for the market, a man will often reject all his wife's short-listed properties as being not good enough. 

"I'm afraid that men often have an inflated idea of the calibre of property that their budget will allow," said Noel Flint, of Knight Frank. "Only after seeing a number of properties do men accept the need to compromise or increase their budget."  The majority of husbands want to control price negotiations although there are notable exceptions. Some women have both a talent for property and husbands who recognise this and are happy to let them deal with property decisions and choices.   "Men generally are more influenced in their choice of property by factors that will make family life easier and more comfortable. Both partners tend to share the other's concerns, but give somewhat less weight to them," said Mr Flint. "In the end there is, of course, a sensible compromise."

In the London rental market a different picture emerges. Husbands often come to London to take up two- or three-year posts, usually arriving before their families, in part to explore areas, undertake preliminary viewings and short-list properties. Rental negotiators frequently find that on the wife's arrival she will veto her husband's short-list, usually on the grounds of family practicalities. Perhaps there is no suitable school in the area, or not enough room for children to play. Then she will take over the search.

Julie Hill, of Knight Frank's lettings department, said: "An important difference in a rental situation is that there is usually no significant decision or negotiation needed on the financial side as a budget will have been set by the husband's employers, who will be paying the rent. Providing that the area is suitable, and particularly if he can have a study, then typically a husband seems to be happy to give his wife a free hand in choosing a rental property. A study is highly valued by men, while women are predictably more swayed by a fine kitchen."

While the importance given to different factors by men and women varies, there is an understanding that each partner holds an implicit veto over decisions made by the other. "Both sexes wear the trousers these days," concluded Mr Flint.

---

Average House Prices Top £352,100
December 1998
The poshest houses in Haringey are among the priciest in London, a new survey shows.  The average cost of a detached house in the borough is £352,100, topped only by prices in Camden, Kensington and Chelsea, Merton and Wandsworth.

It's even cheaper to buy a big house in Westminister, Richmond or Kingston than it is in in Haringey, according to the new figures produced by independent group the London Research Centre.  A Muswell Hill estate agent said prices for the swankiest houses in Haringey, in areas like Crouch End, Muswell Hill and Highgate, had shot up in recent years.

"The top end of the market has stretched away in the past year and that's unheard of," he said. "Over the last 12 months there has been demand for the most expensive houses." "Houses in places like Lanchester Road sell for £700,000 and in Grand Avenue for £600,000, followed by Woodland Rise and Woodland Gardens for £550,000.  Prices have almost double since 1989.  Top prices then were around £350,000 but the price of flats have not increased nearly as much."

Steer clear of cowboys
 The National Federation of Builders has revised and strengthened its much praised guidance to householders which enables customers to avoid the risk of using 'cowboy' builders.  "Cowboy builders are the scourge of our industry," said Colin Harvey, Chairman of the National Federation of Builders, who added: "We are determined to play our part in driving them out of business. It's time to pick the rotten apples out of the barrel." Aimed at protection the interests of the customer, the guide, titled "Get the Best from Your Builder" describes in user friendly terms the simple steps customers can take to ensure that they are using a reputable builder and that their job runs smoothly. It gives practical advice on choosing a builder, obtaining references, agreeing things in writing, payment methods and what to do if the builder produced defective work. Unfortunately, all too often, householders give more thought and do more in-depth checking before buying holidays and cars than they do checking the credentials of builders who
may be charging ten times as much. This makes it very easy for cowboys.  Colin Harvey said, "As our guide makes clear, a few simple precautions by the householder will give them the reassurance of a reputable builder and will help marginalise the crooked minority."

The guide is available free of charge and can be obtained by telephoning 0800 328 5815.

Uninsured risk
October 16, 1998
Three years after a cut in State support for mortgage interest repayments in the event of accident, sickness or unemployment, two in three homeowners
have no mortgage repayment protection insurance.  Midland Bank figures reveal that a quarter of these homeowners have no idea how they will repay their mortgage if their circumstances change; 15pc said they would have to rely on their savings to keep up repayments.

A further one in five house-holders admitted they would be unable to pay their mortgage for the nine months before they qualify for state support for
their mortgage. Yet it would cost a typical homeowner just £18 a month to protect repayments. "We are all inclined to bury our heads in the sand when it comes to thinking about an accident, long-term sickness or unemployment affecting our income," said John Massey, head of Midland Mortgages and Chairman of the Council of Mortgage Lenders (CML). "Many homeowners who decide not to protect their mortgage repayments are worried about the cost, but these are the very people who can't afford not to protect their
borrowing."

Figures from the CML underline the value of mortgage repayment cover. While the mortgage market remains fairly buoyant overall, in the first half of
1998 repossessions rose by 9.6pc.