Airline immigration case just the ticket for landlords

While the worlds of lettings and budget air travel might appear disparate, landlords might want to show thanks to Ryanair after it successfully challenged a recent legal claim over an immigration dispute.

When the Home Office imposed a penalty on the budget airline after it was found that two Albanians had illegally entered the UK on a flight from Spain using forged Greek passports, Ryanair went to the Central London County Court to state a challenge.

Spanish officials had failed to notice the forgeries, but UK Border Force officers were more vigilant. As a result, the Home Office penalised Ryanair £2,000 for each Albanian, but the airline contested the charge.

Parallels are clearly drawn for landlords under the Right to Rent scheme, which stipulates that documentation has to be checked to ensure that potential tenants and other occupiers of a property aged 18 or over have a legal right to be here.

The Code of Practice that accompanied the implementation of the Immigration Act 2014, set out in the Immigration (Residential Accommodation) (Prescribed Requirements and Codes of Practice) Order 2014, says that landlords “will not be penalised, if, having taken all reasonable steps to check a document’s validity, they are fooled by a good forgery which appears to be genuine.”

The difficulty comes in knowing what a good forgery is, but the Ryanair case seems to give at least a clue as to a definition.

Two immigration officers gave statements that missing security elements in the passports used by the Albanians were in their view “reasonably apparent” to a member of airline staff and that they should have been spotted. However, other immigration officers in similar cases had found that the forgeries were not “reasonably apparent”. The Court took the view that missing security elements that are relatively hard to find, even for trained professionals, would not be reasonably apparent to busy airline staff, even though they have an annual refresher course.

Lisa Simon, 

Partner Head of Residential Lettings

T: 020 7518 3234 

E: lisa.simon@carterjonas.co.uk

EPCs 10 years on – time to reassess their impact?

It’s a decade since residential properties in the UK were first required to have a ten year Energy Performance Certificate (EPC) before they could be sold or let. As the ten year anniversary approaches, the time has come for the early starters to be reassessed.

Originally part of the Home Information Pack (HIP), loved by a few and loathed by many - but which would have been useful if implemented as originally intended, the EPC survived when the HIP requirement was abandoned in 2010.

At first regarded as a bureaucratic irritation rather than a necessity, the EPC gained more traction recently when the introduction of Minimum Energy Efficiency Standards (MEES) meant that from April 2018 it will be difficult, but not impossible as some suggest, to let a property with an Energy Efficiency Standard below Band E on its EPC. There are exemptions that can be registered, but these are subject to re-application every five years, and it is by no means certain that this will continue ad infinitum. Indeed, it’s expected that the rules will become tougher and eventually exclude Band E properties.

With that in mind, it could be beneficial to review the EPC for your property even if you are not yet required to replace the original purchased 10 years ago. In fact, some landlords are relying on an EPC that exists from when they purchased the property, and therefore was provided by the vendor rather than themselves.

Where a property is Band F or G, but also for those with a low score in Band E, having a new EPC assessment could make the difference between 10 years of worry-free letting and the stress of not knowing whether an exemption granted in time for April 2018 will be renewed in 2023.

The energy assessor who provides the EPC will check for items such as double glazing, boiler efficiency, radiators, and insulation for the hot water tank, walls, and loft. The results are fed into a software program that produces a figure for the EPC, which in turn determines the banding in some instances. The assessor can override the program if there’s visual or written evidence that standards are higher than the software assumes.

Where you are borrowing to fund the purchase of a lettings property, your lender may want confirmation of its energy efficiency standards, especially where the current banding could make it borderline in the future and therefore bring a possible diminution in its asset value. Therefore, taking care of what was once regarded as a merely administrative necessity could pay dividends.

Certain classes of building are exempt from the need for an EPC. As far as residential landlords are concerned, the principal category concerns those that are officially listed as of historic interest.

From April this year, tenants have had the right to ask their landlords to approve their installation of energy efficiency measures. Originally this would have fallen under the Green Deal - a scheme that already had drawbacks before its funding was withdrawn because of low take-up.

Improvements were supposed to be funded through energy bills applicable to a property, provided the benefits of the improvement outweighed the cost of making them.

But it’s much better to make these improvements independently, as part of an investment in your lettings property, rather than using a scheme that allows tenants to take charge, as this may ultimately restrict which energy company you can use in the future, as not all energy providers are involved. While this may seem insignificant, consumers are growing more energy aware and may resent having their opportunities to switch curtailed.

My recommendation is that where tenants ask to carry out an energy survey, you allow it to go ahead, but then consider whether or not it’s to your advantage to implement the improvements yourself so you retain control. It may also be that the work can be completed at lower cost than the tenant’s chosen contractor offers.

Lisa Simon, 

Partner Head of Residential Lettings

T: 020 7518 3234 

E: lisa.simon@carterjonas.co.uk

Super Suffolk – in a class of its own

Every year Carter Jonas takes part in the Hadleigh Show; we run the “Guess the Weight of the Bullock” competition with the bullock always provided by the lovely farmer, Bob Mannings - it’s a great fun event and good to see so many people taking part, with the farmers and their children taking their guesses more seriously then most!  We love the day and I believe the show encapsulates Suffolk at its best with such a mix of people, animals and events all blending perfectly in the melting pot.

This is one of the earlier country shows of the year in our region and held at, what I believe to be, the most beautiful time of year.  I think it’s hard to beat Suffolk in May and June.

A question I am frequently asked by national journalists, as well as by those in the early stages of considering a move here, is “Why Suffolk?”. It’s easy to know where to start, and difficult to know where to stop, but here goes:

Suffolk is the secret jewel of East Anglia.  It’s the seventh biggest county in England sandwiched between Essex, Norfolk and Cambridgeshire while stretching out to 45 miles of National Heritage Coastline.  Our rivers are muddy and rugged and utterly charming as they flow down to our colourful coastal towns and villages.  The rich farmland and gently rolling countryside is not infrequently described as voluptuous and a journalist, who once described Suffolk as having “roses in her cheeks” got it pretty bang-on I’d say!

It’s no surprise that artists, actors and the media are drawn in by the bucolic scenery, rural tranquility, laid-back lifestyle and discreetness of Secret Suffolk.  Just to name a few: Griff Rhys-Jones, Clive Owen, Bill Nighy, Ralph & Joseph Fiennes, Twiggy, Judi Dench, Nick Robinson, Anthony Horowitz, Stephen Fry, Ed Sheeran and Claudia Schiffer. The vibrancy of our arts and entertainment can also be enjoyed in highly popular venues such as Snape Maltings and at the Aldeburgh Festival.

What more?  We have excellent private and state education; we’re one of the safest and greenest counties in the UK; no motorway crosses our county; Stansted Airport is conveniently close without the noise impact; sell-out musical festival of Latitude; about 20 golf courses; brilliant sailing; horse racing at Newmarket; superb farm shops; food and drink festivals; excellent restaurants and pubs; picture book villages and stunning historic towns.

Our architecture varies from the traditional medieval timber framed houses, to brick and flint Victorian houses, to thatched cottages, to the rarer Georgian gems as well as stunning and daring contemporary designs.  The village of Lavenham has at least 340 listed buildings and Nikolaus Pevsner had two architectural volumes dedicated entirely to our county.

Suffolk has been voted for its best quality of life of any rural area in Great Britain; for its longest life expectancy and we’re the driest county with two more hours of sunshine each week than the national average.

It’s not just about community and culture though - we’re highly commutable too, especially along the Essex/Suffolk borders.  Manningtree Station was nominated as one of the most popular and friendliest commuter stations in the UK last year.

The prosperity of Cambridge ripples out to us and we have the lowest house prices within a 60 mile radius of London. Londoners often start off with a second home in our region, spend more time here, are seduced and change to a London bolthole instead.  We’re quite an addictive cocktail!

Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

Osborne's Help to Buy ISA

With just six weeks to go until the General Election, we were not expecting anything drastic from Mr Osborne’s sixth budget . Interestingly, the Chancellor announced a new Help-to-Buy ISA to assist first time buyers saving mortgage deposits whereby the Government will top-up every £200 saved by the individual with an additional £50. Mr Osborne commented that it will “tackle two of the biggest challenges facing first-time buyers — the low interest rates when you build up your savings, and the high deposits required by the banks.”

Our research analyst, Lee Layton, believes that; “The proposed scheme will (like the Help-to-Buy equity loan & mortgage guarantee schemes) undoubtedly boost demand for starter homes, but unlike Help-to-Buy, this demand should be better distributed as participants save and enter the market at different times, preventing a possible super-charging at the lower end of the market.”

This initiative will not however alleviate the severe shortage of stock affordable to first time buyers; it will essentially create more demand. We were anticipating that this year’s Budget would address the escalating lack of supply and focus more on incentivising institutional investment in the Private Rented Sector, which would offer a bridge or transition for many people between the current levels of unaffordability of buying property and a longer-term rebalancing of the house price/ affordability ratio. However we await the revelation of the 20 ‘new housing zones’ with great expectations.”

Lisa Simon, 

Partner Head of Residential Lettings

T: 020 7518 3234 

E: lisa.simon@carterjonas.co.uk

Revenge evictions bid fails - but may return

You may remember in an earlier Clearer View we raised the issue of gas safety and in that article mentioned a Private Member’s Bill put before Parliament by Liberal Democrat MP Sarah Teather.

The Government agreed to back her Bill and allow it time to progress through the essential Parliamentary stages – but its second reading on November 28 was talked out by two Tory MPs who spoke for more than two hours until the Bill ran out of time.

However, it’s reported that Housing Minister Brandon Lewis is seeking a way to insert a clause to prevent so-called “revenge” evictions into the Deregulation Bill in January.

The Bill sought to ban such evictions by landlords of tenants who had requested repairs – once a repair had been requested, the Bill would have made it impossible to serve a Section 21 notice for repossession.

This restriction would also have applied where no valid gas safety certificate exists or where the tenant has not been given an EPC for the property but its failure in Parliament is no reason to avoid ensuring all necessary paperwork is valid and up to date.

EPCs are arranged at the point of marketing by all our branches. Our property managers arrange gas safety certificates for our managed properties and it remains a legal requirement for Houses of Multiple Occupation (HMO) to have a carbon monoxide alarm fitted. However, we advise all landlords to consider the installation of alarms to protect the occupier and help prevent any legal action being taken against a landlord.

Lisa Simon, 

Partner Head of Residential Lettings

T: 020 7518 3234 

E: lisa.simon@carterjonas.co.uk

Child safety should be the focus

Child safety is at the forefront when many people are shopping at this time of year but, professionally, it should also be a concern for landlords.

This is especially so in the home with regard to anything used for internal blinds or curtain tracks including, but not limited to, vertical blinds, roller blinds, Roman blinds, and plantation shutters which are now subject to 40 pages of regulations published by the British Standards Institution and based on European standards.

If that sounds over complicated, the British Blind and Shutter Association has a very helpful leaflet on-line that explains what’s needed - click here - where’s helpful video content and a downloadable explanatory pdf.

Where new blinds are being fitted, they must comply with the regulations and have built-in safety systems but where this is not feasible due to window shape or location separate safety systems can be used such as chain or cord tensioners.

In either case, there are regulations governing the lengths of cords or chains.

Properties where blinds are already installed can still be made safe – the relatively simple installation of cleats on which to wind cords when not in use may be an efficient and cost-effective solution to prevent young children being strangled in the loops created by cords or chains.

Of course, such devices are only effective when they are used. If your properties are furnished, cots, playpens, and other furniture should be placed away from windows to avoid children climbing up, an activity they all seem to love.

The regulations apply to all premises where children aged between 0-42 months are present or likely to have access – almost everywhere!

Our property managers are available to assist with adjusting existing installations and, where applicable, installing new blinds or curtain tracks.

Lisa Simon, 

Partner Head of Residential Lettings

T: 020 7518 3234 

E: lisa.simon@carterjonas.co.uk

Leaving your property empty could come at a high cost

More properties will be caught in the net of increased taxes following the Budget announcement this week. Particularly in London, where property values are at their highest, the extension of ATED (Annual Tax on Enveloped Dwellings) to property valuing £500,000 and above will affect the capital’s mainstream market. I anticipate that more owners of properties in a corporate structure might consider renting out their property rather than leaving it empty. This is one way of mitigating the tax which, on a property valued between £500,000 and £1,000,000, would cost £3,500 per year if left empty from April 2016.

See our press release '2014 Budget: Effect on Prime Residential Property market'


Lisa Simon, 
Partner
Head of Residential Lettings
T: 020 7518 3234 
E: lisa.simon@carterjonas.co.uk

Legionella checks could be vital

Most people associate Legionnaires’ Disease with exotic climates or big hotels and conference or leisure centres.

But it can be much closer to home than you think - quite literally if you have a wet air conditioning system, swimming pool, or open water tanks in your property.

If the property is let, to comply with the Health and Safety Executive’s Code of Practice, landlords need to ensure that the risk of exposure to legionella in the property is properly controlled and where necessary carry out a risk assessment prior to letting.

Legionnaires’ Disease is the result of legionella bacteria infecting the lungs. It is usually contracted through breathing in small droplets of contaminated water. It is not contagious and cannot be spread directly from person to person.

Legionella bacteria is commonly found (often in harmlessly low numbers) in sources of water, such as rivers and lakes. However, the bacteria can rapidly multiply if they find their way into artificial water supply systems such as air conditioning.

Large buildings such as hotels, hospitals, museums and office blocks are more vulnerable to legionella contamination because they have larger, more complex water supply systems in which the bacteria can quickly spread. But with the increasing complexity of domestic properties, the threat should not be ignored.

Carter Jonas' heads of lettings and property managers have Legionnella and, Water Safety training and where they identify possible risk of Legionnaires’ Disease, will recommend an external consultant to carry out a risk assessment.

For more information visit The Health and Safety Executive’s Code of Practice.


Lisa Simon, 
Partner
Head of Residential Lettings
T: 020 7518 3234 
E: lisa.simon@carterjonas.co.uk

Short Listed for the ESTAS 'Estate and Letting Agent Awards 2014'

I am delighted to report Carter Jonas Residential Lettings have been short listed for the ESTAS ‘Estate & Letting Agent Awards 2014’.

The ESTAS determines the best estate and letting agents in the country through research carried out amongst their Clients about the service they have received from their agent.

This year 32,000 surveys have been submitted and we have been short listed for four Regional Categories and ’ Best Medium sized chain’.

The results will be announced by Phil Spencer, TV Property expert at the 11th annual ceremony on 9th May 2014. We are thrilled to have been shortlisted and are very grateful to our Clients who took the time to complete and submit surveys regarding our service.


Lisa Simon, 
Partner
Head of Residential Lettings
T: 020 7518 3234 
E: lisa.simon@carterjonas.co.uk

"I Heart Suffolk - that's my motto!"

Those of us born and bred in Suffolk have known about this county’s bewitching nature all our lives but the word is out. Recently described as a county “with apples in her cheeks”, our rural charm and undulating beauty now effortlessly blends with the sophisticate. London may be the cosmopolitan cocktail but Suffolk’s the cherry on top.

The attractions of Suffolk can easily be taken for granted by those who live and work here already but those new to the area will inevitably remark how colourful the houses are – an eclectic mix of charming painted cottages, elegant red brick and white brick Georgian houses and mansions, drunken timber framed houses in abundance, as well as pastel coloured beach huts.

We’re synonymous with pretty villages, rural hamlets, bustling market towns as well as the exceptional beauty of our unspoilt coastline and rugged, muddy rivers - bucolic scenes all perfectly captured by Constable and Gainsborough.

Suffolk was once a preferred destination for retirement – especially for those looking to move from the expensive Hertfordshire/Essex borders for a more peaceful way of life. Similarly, buyers migrated south from Scotland and Yorkshire to get that much closer to their family and friends in London. Quick research on the Internet will show we remain the most affordable county within that all-important 60 mile radius of London.

No motorway crosses our county yet we have excellent road and rail communication links to London and employment hot spots such as our hi-tech, high-powered, neighbour Cambridge. Added to which, Stansted Airport in Essex is a very accessible convenience whilst being far enough removed for noise pollution to be of no concern.

However, in the past five years, London has swivelled its searchlight north eastwards and hungrily shone its beam on Suffolk unveiling our hidden jewels.

We’re no longer the closely guarded secret we once were. Our high quality of life sees us top of the league in the UK’s longest life expectancy and, not only are we the driest county, we’re one of the sunniest in the UK too.

Niceties as these are, it is our top-rated schools and ease of commuting (under one hour to Liverpool Street) that seals the deal for our London buyers.

But we must definitely not forget Newmarket, the world famous home of British horseracing, which generates £208 million per annum and is also home to Frankel – universally known as the highest rated and most famous racehorse in the world. Since retiring from an unbeaten record of 14 wins out of 14 races and valued at £100 million, Frankel now stands as a stallion for Juddmonte Farms at Banstead Manor Stud commanding an impressive income of around £10-£12 million per year.

Maybe Frankel’s magic has rubbed off on the rest of us or maybe Suffolk’s new found celebrity put that extra heat into his heart and hooves as he raced to all his winning glories! Either way, a horse of such surprising and exceptional magnitude pretty much sums up Suffolk: stunning in all its discreet, yet unquestionable, splendour.

I heart Suffolk – that’s my motto!

Caroline Edwards
Partner
Residential Sales, Long Melford
T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

Put energy into improvements now

The Energy Act 2011 states that from April 2018 (at the latest), it will be illegal to rent out residential or business premises that do not reach a minimum standard of energy efficiency.

Although it’s not yet clear, the Government seems to be indicating that the lowest acceptable energy rating on an Energy Performance Certificate should be Band E. Landlords who have F and G rated buildings (and possibly some in Band E) will need to actively attend to improving their energy efficiency.

There are circumstances where no EPC is needed, for instance when a building is listed (this applies if it shows up on a search of the English Heritage database or the Welsh equivalent list at CADW) or where certain facilities are shared between tenants.

Guidance from the Department of Communities and Local Government can be downloaded at here.

It makes sense to improve efficiency sooner rather than later, when all the procrastinators will be in the same frenzy and improvement firms may well be cashing in by raising charges.

Carrying out fresh assessments now, particularly where the EPC is Band E, and then factoring in the costs of upgrades where necessary, possibly spreading them over a period, will help limit the financial impact of carrying out the work. It may also be that as time goes on some energy efficiency grant funds’ availability diminishes through over-use or cuts in funding – at present some improvements may come within the scope of the Green Deal.

Your accountant may be able to advise on the best way to make use of capital allowances in addition to planning the effects on your cashflow. You should also bear these changes in mind if you are looking to expand your portfolio through buying more properties, some of which may have EPC assessments that are already several years old.


Lisa Simon, 
Partner
Head of Residential Lettings
T: 020 7518 3234
E: lisa.simon@carterjonas.co.uk

Eliminating the silent killer - carbon monoxide

No human sense can detect it, yet very quickly it can overcome its victims with disastrous consequences. It kills 50 people in the UK every year.

Carbon monoxide detectors are now a legal requirement in Scottish lettings properties, where new boilers or gas appliances are installed, but not in England. It’s a curious situation where someone in Gretna is legally protected, yet their friend in Carlisle currently legally neglected!

The Government has just added enabling powers to the Energy Bill, during its passage in the Lords, to introduce a requirement for carbon monoxide and/or smoke alarms in private rented properties and a review is promised not only of whether smoke or CO2 alarms should be mandatory but also of minimum standards for private rented properties.

A Derby landlord was recently prosecuted after a tenant who had reconnected a condemned gas boiler was subsequently killed by the fumes it gave off. During tests after his death, so much carbon monoxide was present that four neighbouring properties had to be evacuated.

Gas appliances had not been tested subsequent to a test arranged by the agent who introduced the tenant. The agent was not contracted to manage the tenancy and no further tests were carried out.

Landlords are culpable if tenants die in their properties from a defect that could have been foreseen or prevented, such as carbon monoxide build-up.

Here at Carter Jonas, we have taken the decision to advise landlords to adopt best practice and install carbon monoxide alarms. New appliances should already go some way towards protecting tenants, often it’s older appliances that cause the problems. The only way to manage this risk is to eliminate it by use of alarms.

Combustion appliances fuelled by solid fuel, oil, or gas all have the potential to cause carbon monoxide poisoning if they are poorly installed or commissioned, inadequately maintained or incorrectly used. As of 1 October 2010 alarms have been mandatory for newly installed stoves but this does not extend to every potentially dangerous situation.

As part of our management service for landlords, we are recommending and arranging for carbon monoxide alarms to be fitted in their properties over the next few months to both protect the occupier and give our clients peace of mind.

Lisa Simon, 
Partner
Head of Residential Lettings
T: 020 7518 3234
E: lisa.simon@carterjonas.co.uk

Obscure court case causing problems

A seemingly obscure case in the Court of Appeal is proving a headache for politicians and could be a problem for some residential landlords.

A seemingly obscure case in the Court of Appeal is proving a headache for politicians and could be a problem for some residential landlords.

The effect of the ‘Superstrike’ case, the name of one of the parties involved, could have far reaching effects for landlords who have had the same tenants in a property since before deposit protection legislation came into effect in April, 2007.

In Superstrike, what’s known as a Section 21 notice was served to evict the tenant but the move failed because the tenancy dated from January, 2007, and then continued in 2008 under what the appeal court determined was a separate statutory periodic tenancy.

The court ruled that this in effect created a new tenancy but the deposit had not been protected with a tenancy deposit scheme so the landlord was prohibited from obtaining the eviction order. However, politicians say this was not the outcome intended when legislation was drafted and they are now looking at how to correct the anomaly.

In the meantime, landlords who have not protected deposits need to do so using one of the approved schemes. They are obliged to serve the tenant with what’s called Prescribed Information and the scheme leaflet for the tenancy deposit organisation they use.

There are various options to overcome the situation and every landlord needs to be confident that they are in the right position individually with regard to deposit protection and also be aware that further court rulings or legislative amendments from Government could further affect their position.

 

For further information; ‘Likely Implications of Tenancy Deposit Protection Case Superstrike Ltd v Marino Rodrigues’, has been produced in collaboration between the industry bodies ALA, BPF, NALS, NLA, RLA RICS and UKALA.

I will happily point landlords in the right direction for the advice they need and in some instances may recommend that the deposit is returned to the Tenants prior to serving a Section 21 notice.

Lisa Simon, 
Partner
Head of Residential Lettings, Mayfair
T: 020 7493 0676
E: lisa.simon@carterjonas.co.uk

Bottoms up in Bath!

The big Christmas lights switch on with John Cleese in Bath last Thursday has signalled the official beginning of the festive period and as we know this is usually followed by the swift hibernation of the UK housing market!

However, in recent years with increasing access to property via web portals and smart-phone web apps the housing market has become far less seasonal and 2011 as a whole looks to be continuing that trend.

The early ‘New Year’ market was particularly buoyant in the southwest region and certainly out-performed the perceived stronger selling seasons of spring and early summer and this has become somewhat of a trend in recent years as quick decisions about property are made following the Christmas and New Year break.

The early autumn market too used to be a popular period for both buyers and sellers but the summer holiday hangover seems to have lasted longer in recent years and that is certainly true of 2011 in the southwest as the market didn’t really start to pick up until early October. We’re now rapidly approaching the end of November and viewing levels are still encouraging even though quality stock is in short supply and the viewing to offer ratio has come down to approximately 1 in 8 for October which was 1 in 49 in September. Activity is such that we have just released two new properties to the market, something that we would not have generally advised in years gone by and after just a few days we have had several viewings on both and an early bid on each.

It is also worthy of note that the greatest activity, particularly since the summer has centred on property below £1m and even more so on those below £500,000 suggesting that should a recovery be forthcoming it will have been supported to a greater extent from the bottom up rather than from the top down! In Bath we are particularly keen on increasing the level of city centre property that we are dealing with but we are now focusing just as much on high quality flats and apartments as we are on fine Georgian town houses due to the greater demand.

I am convinced that with just a few more positive headlines regarding the housing market we will see the return of buyers for the regions prime country houses, although in many cases significant price reviews will be needed as unrealistic pricing has been a fundamental reason for the severe lack of activity and confidence in this sector of the market in recent months.

So the Christmas parties, drinks receptions and general celebrations will have to wait at least for a few more weeks while we still have willing buyers and motivated sellers. We have all learned a great deal from the 2011 market, particularly from the vantage point of our new office here in Bath, the recovery is clearly going to be a slower process than many ‘experts’ predicted back in 2008/9 and old fashioned proactive agency together with realistically priced property will be the key to a successful 2012 and we’re eagerly anticipating a busy and productive New Year.

Patrick Brady
Associate
Residential, Bath

Investing in fundamentals

This week’s housing market reports and predictions are as contradictory as they are arbitrary, which is de riguer in an uncertain world.

In times of uncertainty, investments in fundamentals are seen as a safer haven. Concerns over European leaders being able to tame the sovereign-debt crisis have further boosted demand for gold as a safe haven investment. Spot gold prices reached $1,804.10 an ounce, a seven-week high, in yesterday's trading in New York. Farmland prices have almost doubled in the past five years and are somewhere around 5% higher than a year ago. Over the past 10 years agricultural land has grown 204%; which is twice the increase shown in London property prices and notably above the 6% growth experienced by the FTSE 100 during the decade. Even best English shotguns have been targeted by investors with record prices being paid and valuations rising around 3-5% a year.

Residential property, however, which is as fundamental an investment as most of us own, is, it appears not the darling of the press it once was. It is cheaper to buy than to rent. Yet, we seem to have become immune to the charms of historically low mortgage rates and the opportunities as differentials gaps narrow.

Rising commodity and fuel prices have exerted growing pressures on household incomes. But there are waiting lists across some of the quality marques for their latest range of smaller SUVs. A client tells me track side, bookmakers have reported as much as a 20% increase in takings, certainly Ladbrokes’ recent quarterly results showed a 2.5% increase over the same period last year.

The property market in Hampshire is frustrated. We have any number of excellent buyers but a steady flow of fresh properties coming to the market is being hampered by media sentiment and a feeling that perhaps it is better to wait until spring. All of this is quite understandable but our mailing lists are full of purchasers who have see the light of buying in this climate.

November, whilst not a classic time to launch a sale, offers the backdrop of an autumnal landscape and the focus of Christmas. Yet the mild weather and turning shades has given us some wonderful days. Both rivers and the countryside teem with life and entomological hatches are still a valuable food source. Game feeders provide further food for over wintering song birds and skeins of geese can be heard at dusk as they return to the safety of the river from a day’s grazing. The clocks changing gives a welcome sunrise to us early dog walkers and it is not cold enough yet for a winter coat. But as surely as night follows day, winter is close by. If the weather patterns of the past few years are repeated, we may have to wait a long time until spring. Whilst autumn can feel like a prelude to the main event , we must be careful what we wish for. Perhaps the thing that is most missed by those who leave our island for warmer climes, are the seasons. This year, mother nature has excelled herself with the loveliest autumn display. Jack frost, surely cannot be far away.

Matthew Hallett
Partner
Head of Residential Sales, Winchester