Auction centre launch
18 January 2008



William H Brown announced this week it is opening a new auction centre in Norwich as part of the expansion of its business. SIMON ARNES, divisional managing director, talks about the new venture.

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Being one of the largest property auctioneers in the UK, selling more than £323m worth last year as part of Sequence, William H Brown has announced it is opening a new auction centre to cover East Anglia. Divisional managing director Simon Arnes, pictured, will be the auctioneer and after celebrating 35 years at William H Brown, he is really looking forward to the new challenge.

He said: "I originally began my career in auctions and it's something that has always been close to my heart. As well as my own experience, we have a team here in Norwich and six other centres around the country to help support this new opening. This includes our operation trading as Barnard Marcus in London, which is one of the most respected auction centres in the UK, with access to thousands of investors home and abroad."

As recently reported by EDP Property, William H Brown has opened three residential sales branches in the past two years and recently picked up the Best Multi-Branch Agency Award at the Archant Property Awards 2007. The new auction centre is part of the planned growth and investment in the region and takes advantage of the increase in popularity of auctions as a means of buying and selling a property.

Mr Arnes said: "Today residential property auctions are more accessible and television programmes such as Property Ladder and Under the Hammer have helped to make auctions a less intimidating place for buyers."

"So much so, that our auction rooms are seeing a change in the profile of their audience. The lifeblood will always be the seasoned investor, however, we're seeing more people, such as first-time buyers, coming along to auctions as they look to alternative ways of buying a property.It's not just television shows encouraging people, though."

"The internet means people can search for properties more easily and house price increases have encouraged people to come along and see what is available. Also auctions are exciting; there's a great atmosphere in the auction room and once the hammer goes down, the deal is done avoiding all that stress and weeks of waiting that happens during a normal sale."


The first auction will take place at Barnham Broom Hotel & Country Club on Thursday, April 17, 2008 and if you'd like to talk to William H Brown about buying or selling a property at auction you can do so by calling 0845 6050062.

Firm floats new way of life on the waterfront

ALASDAIR MCGREGOR

26 January 2008 10:59


Forget a round-the-world cruise on the high seas - if you want some luxury living on the water, then Lake Lothing in Lowestoft could be the place to go. Instead of lily pads around the edges of the lake, deluxe pads are set to spring up courtesy of a developer who is looking to pioneer a new breed of water homes in the UK. David Beard, chairman of the Waterliving UK company, has been involved in high-level talks with the 1st East Urban Regeneration Company, which has been tasked with breathing new life into waterfront areas in Lowestoft and Yarmouth.

Now the idea of creating a community on the water could be realised after proposals to regenerate the rundown Brooke Peninsula were submitted to Waveney District Council - with water living playing a significant part in the plans. However, anyone interested in a new way of living will need to dig deep, with the water homes expected to go on the market for between £300,000 and £450,000.

Mr Beard said: “The water living concept is prestigious. They are really penthouses on water and are built to a very high specification. It is a Danish concept and I am now seeking to create communities on the water in the UK.” The application still needs to be given the go-ahead by planners at Waveney and the dream of water living in Lowestoft may take another three to five years to realise.

Those earning £16,000 - the average yearly salary in the county - could qualify for a 90pc discount on the land value of the house. This would fall to 70pc for someone earning £20,000.

The move, which was discussed by Norfolk County Council's cabinet yesterday, follows an extensive report by the council's scrutiny committee looking at how public authorities could breach the shortage of affordable homes in the county.

Cliff Jordan, a Breckland district and county councillor, came up with the idea which was then developed in detail by a scrutiny working group.

He said as well as providing sites, the partnership could 'buy' into housing schemes being built by private developers.

“We have got to do something radically different,� he said. “The problem we have got is low wages. This is giving them breathing space and helping them to help themselves. There is nothing like it on the market. It isn't just a Norfolk problem, but this is a Norfolk solution.

“You would have a mortgage of about £45,000 to £50,000 plus 10pc,� Mr Jordan added. “If you are on an average wage of £16,000-£17,000 you could afford a mortgage. You are on the ladder and away you go.�

The cost of living in Norwich has risen by an estimated 23pc in the past five years, despite the government's official rate of inflation being just 2.2pc, leaving many families in the county with major debts.

I'm holding out for the mother of all policy conjunctions aimed at helping ftbs (no stamp, grants etc) just as houseprices crap themselves and l end up with the steal of the millennia.

I've done my time, its my feckin turn now.

Will home inspire zero-carbon copies?

EMILY DENNIS

20 February 2008 08:38

From the outside it will look like any other normal family home.

But, once built, the three-bedroom property is likely to be the first occupied and constructed zero-carbon house in the country.

The South Norfolk Eco House project is the idea of Paul Bourgeois and his wife Janet, who plan to inhabit the “living laboratory” with their two children if their proposals are approved.

Eco-expert Mr Bourgeois, 33, hopes the scheme will provide a pioneering example of sustainable living and pave the way for people to learn about adopting a low-carbon lifestyle.

He hopes to build the home on a plot of land leased by the Norwich diocese at Little Melton, near Hethersett. It would be open to visitors 25 days a year and would include community and training space.

The house would be built mainly by hand to minimise the impact on the environment. A timber frame would form the basic structure, with locally- sourced materials, including hemp and straw bales, forming the outside walls. Solar panels in the roof would provide electricity and hot water, with additional energy being generated by a wind turbine.

Rainwater would be harvested and recycling techniques used before the water was treated in a dry reed bed.

Garden Organic, formerly the Henry Doubleday Research Association, has said it would like to create a national organic garden demonstration, and Easton College and Little Melton Primary School have expressed an interest in involving pupils and students in eco-education projects.

Mr Bourgeois used to work for Renewables East and has just completed a post-graduate research project at UEA looking at carbon and energy savings associated with loft and cavity wall insulation.

Norfolk affordable housing plea

LORNA MARSH

06 March 2008 18:54

Landowners in East Anglia have demanded assurance that any affordable housing they help provide will be kept for local people in genuine need following concerns that it falls into the open market.

Their frustrations are outlined in a report carried out by the Country Land and Business Association (CLA) which looks into affordable housing in the region and the disincentives that exist for landowners to provide plots.

In the report put together by Tim Isaac, Eastern region surveyor for the CLA, it states: “Many landowners are already involved in affordable housing schemes, having made land available to rural housing associations free of charge, or at significantly less than market prices.

“Even more housing is provided to employees and retired employees at low rent, or even rent free. Generally, landowners do not want any possibility of such housing being lost as a consequence of right to buy, being used to solve housing shortages elsewhere or being sold on the open market.

“A common theme is dissatisfaction with the fate of affordable housing once the landowner has surrendered any connection with the scheme. Almost two thirds of respondents would want to retain an interest (be it leasehold or freehold) so that they would have some degree of assurance that the new homes will continue to be available for 'genuine' local people.”

One landowner was quoted as saying he wished he had not sold the land after learning that the houses built on it were being sold.

Another says: “One of the houses I provided ten years ago has just been put on the open market, resulting in no local people being able to afford it - this defeats the whole object.”

The report recommends that policies should exist to “to ensure that land or houses provided for this need can be retained in the affordable housing sector, for local people”.

It also states that landowners are put off providing land by red tape and restrictions on mixed developments that mean money from open market housing can not be used to fund adjacent affordable homes on some sites.

The report recommends that such restrictions should be lifted and that policies should be implemented to make providing land easier.

Andrew Budden, vice-chairman of the East of England Rural Forum (EERF) and chairman of the EERF Rural Housing sub-group, said in the report: “The lack of suitable sites for affordable rural housing has long been seen as a major barrier to delivery. I therefore particularly welcome the range of practical policy measures the report identifies that could significantly increase the supply of land for affordable rural housing.”

Brownfield sites backed for housing

SHAUN LOWTHORPE

24 March 2008 07:30

Plans for massive growth in and around Norwich should focus on building homes on former industrial land and boosting public transport.

These are the key findings of a consultation to gauge views on plans to build more than 33,000 new homes in and around the city - equal to four new towns the size of Dereham by 2026.

More than 7,000 people responded to the exercise, looking at 11 possible growth areas from Rackheath to Wymondham.

The report comes as developers building thousands of new homes could be hit with a £25,000 'tax' per household to help pay for the costs of services such as schools, GP surgeries and transport and plug a £380m funding gap.

Critics believe that as well as the lack of cash to pay for the expansion plans, the growth will lead to the loss of vast swathes of greenfield land is unsustainable and will wreak havoc on the environment and character of Norfolk.

Around 80pc of those taking part in the survey were in favour of the plans and agreed growth was being managed in the right way.

But most respondents preferred development on brownfield sites including north of Norwich Airport and at Long Stratton and Poringland.

Policymakers will now whittle down the 11 growth areas to four - each made up of 5,000-10,000 homes. Detailed sites will be unveiled in July.

One key brownfield site, the Deal and Utilities site at Trowse, is proving troublesome as studies suggest the costs of de-contamination and the potential flood risk could prove too costly for developers.

A separate consultation on whether extra houses could help fund a Long Stratton bypass proved inconclusive with 1,182 respondents split broadly down the middle and most supporting up to 1,500 new homes instead of a large-scale development.

Four authorities - Norwich, Broadland, South Norfolk and the county council - are working together as the Greater Norwich Development Partnership (GNDP) on the growth plans.

It is also asking consultants to work up detailed plans for a locally-based tariff and looking at the 'community infrastructure levy' developed by Milton Keynes as a possible blueprint as a means of trying to pay for the new infrastructure needed.

In Greater Norwich a levy of £23,000-£27,000 would generate £165m between 2012 and 2021, leaving a shortfall of £380m and well short of the £650m needed to pay for all of the growth.

Oh dear, have to laugh at this idea - tulips anyone?


http://new.edp24.co.uk/content/news/story....3A09%3A38%3A200




This is great example of the crazy grandiose schemes you get at the peak of a bubble, just like you got with some of the dot.com tech shares in the late 90's stock market bubble. They rarely happen and a lot of investors lose the shirt off their back when these companies suddenly cease to exist - who is seriously going to pay £300k to £450k for something like this in Lowestoft or Yarmouth that has NO LAND!!!!

Credit crunch threatens home-building starts

PAUL HILL, EDP BUSINESS EDITOR

25 April 2008


Building work on new housing developments could be postponed until the mortgage market improves, one of East Anglia's biggest housebuilders revealed.

Persimmon plc said its £1.37bn revenues nationally were running 24pc lower this year than last - and the “unprecedented tightening” of credit by mortgage lenders had seen the housing market decline further in the last three weeks.

In a statement issued before the company's annual general meeting yesterday, the firm said: “Against the current backdrop we have postponed the commencement of scheduled new sites until the mortgage market improves.”

Persimmon - which also owns the Charles Church property brand - said building work would continue on existing sites and that it would focus on “achieving the best possible selling price” on those developments.

The firm has properties on the market at six housing developments in Norfolk - including sites in Diss, Harleston, Long Stratton, Watlington in west Norfolk and two in Norwich - and seven in Suffolk, including Castleton Meadows in Carleton Colville.

Persimmon also urged ministers to “kick-start” the housing market by encouraging banks to make it easier for first-time buyers to secure mortgages, encourage lenders to reduce interest rates and raise the threshold for levying stamp duty.

Andy Fuller, managing director of Persimmon Homes Anglia, told the EDP that he expected the impact of the group's postponement policy would be “minimal” in Norfolk, Suffolk and Cambridgeshire”.

He stressed it was “business as usual” on sites where work was under way: “During the current economic climate, it is prudent business practice to regularly review all aspects of our operations on a region by region basis.

“To this effect, advice from the group board was circulated this week, in particular requesting all offices to re-evaluate work in progress and concentrate on progressing sold and contracted plots. In making sure that our business is in step with slower housing market conditions we will, therefore, maintain a strong position.

“We cannot at this stage predict the number of forthcoming sites this review will affect, but believe it will be minimal across Norfolk, Suffolk and Cambridgeshire,” he said.

Many major housebuilders approached by the EDP yesterday refused to be drawn on whether or not they too were considering postponing work on new building sites.

But David Thomas, Eastern region sales and marketing director of Bovis Homes, struck an upbeat note.

“Once the so-called credit crunch eases we anticipate an increase in demand for housing,” he said.

“Therefore, we are continuing with selective building at our Norwich developments - Stafford Chase, West Costessey, Round House Park, Cringleford, and Highfields, Swaffham. We have further phases of building work planned at Stafford Chase and Round House Park and those remain on schedule.”

Taylor Wimpey - the UK's largest housebuilder - said: “Our focus remains on preserving value through maintaining a steady, but reduced, sales rate and controlling land and work in progress spend tightly.”

Lotto winner's home: Des res to eyesore

08 May 2008 09:11


Just over six years ago a carpet of snow drops covered the well tended gardens of this once picturesque home.

Now it is a near derelict eye sore, stripped of fixtures, fittings and wiring by looters and its grounds littered with blown-out tyres, hubcaps, broken computer consoles and broken glass.

It is all that is left of The Grange, a mansion bought for £320,000 by former binman Michael Carroll after he hit the jackpot and won £9.7m on the Lottery in 2002.

He used it for demolition derbies and parties over a period of two years.

Had it been kept in good condition, it could have been worth about £500,000, an estate agent has said.

Instead it is valued, in its current state, at a paltry £150,000 to £200,000 - less than the price of an average three bedroom semi-detached home in a Norwich suburb.

Second homes prices plummet

LORNA MARSH

08 May 2008

Second-home prices in Norfolk have plunged by as much as 6pc in the last year, it was revealed yesterday, as experts said the market was suffering some of the worst effects of the credit crunch.

Upmarket property group Savills said the economic slowdown had impacted on the £350,000 to £500,000 homes bracket, the one which second properties tend to fall into.

Sweeping cuts in city bonuses and uncertainty amid the credit squeeze have seen prices fall 6pc since the second quarter of last year, according to Savills.

Louis de Soissons, head of residential and director of Savills in Norwich, said the drop had to be seen in context of sharp rises in the year before and prices were set to be back where they were only two years ago.

The revelation follows a 1.5pc fall in prices in London's luxury houses in the last three months and a 2pc drop in the quarter before that as the effects of the credit crunch spread to the once-resilient prime property market.

Mr de Soissons said this was also being seen on second homes in Norfolk but that the very top end £1.2m-plus bracket was still buoyant with several properties already this year fetching in excess of their guide price.

“The £350,000 to £500,000 sector has been one of the most affected. Investment won't be as strong with the credit squeeze and people won't be splashing out on luxuries and a second home is a luxury not an essential.”

Savills said it had seen a “sharp” fall in London property transactions, as well as declines in property prices across the capital and elsewhere in the country.

A report from Savills said top-end house prices had been holding up well despite the tightening in credit markets, which has hit values in the wider residential and commercial property sectors.

Buyer demand for luxury London properties is being hit as City workers lose their jobs due to hefty losses in the embattled banking sector.

Swiss banking giant UBS yesterday became the latest to announce staff reductions, with 5,500 job cuts set to affect its UK workforce.

Demand for City office space has also been affected as banks cut overheads.

Savills said the outlook for its residential and UK and US commercial property operations was dependent on how quickly confidence returned to financial markets.

Meanwhile the Law Society told sellers they could do more to avoid the growing practice of “gazundering”, where a buyer waits until everybody is poised to exchange contracts and then lowers their offer.

Law Society vice president Paul Marsh said it was important to prepare paperwork as early as possible to reduce the time between an offer and exchange and also to build up a rapport with the buyer.

Upbeat forecast by TV property guru

CAROLINE CULOT

09 May 2008

Property finding expert and TV presenter Phil Spencer brought an extra ray of sunshine to Norfolk yesterday with an optimistic message about the housing market, stating: “It's not as bad as a lot of headlines would have us believe.”

Mr Spencer came to Norwich from Cambridge to talk exclusively to the EDP about the launch of his new business in East Anglia aimed at finding the “best of the best” properties locally. But he was happy to give his take on the current gloom surrounding the housing market, saying: “There has been a lot of pain felt in certain parts of the country and in certain sections of the market, but it is not dramatic. For the average homeowner, it is not catastrophic.

“I wouldn't sell in this market but some people have to. Statistics can make some fairly ballsy headlines but it (the housing market) is not going to collapse; it is not going to crash, absolutely not, and everyone will feel much rosier in September.

“There are uncertainties, risks and dangers, but it is important not to talk ourselves into this. If you own a property, it does go up and down. In September, I think there will be more liquidity in the system and the first- time buyer will be able to get onto the ladder again. I think people will feel a lot more comfortable; there still won't be huge confidence but life does go on.”

Mr Spencer, who co-presents the popular Channel 4 programme Location, Location, Location, spoke to the EDP in Norwich before attending a launch party last night in Cambridge where the new East Anglian branch of his property finding business Garrington Home Finders has opened.

Garrington, based in London, is now operating in East Anglia, with Mr Spencer's right-hand man from the capital, Jonathan Hopper, formerly a Norwich estate agent and property finder, specialising in Norfolk and Suffolk. Mr Spencer himself aims to be in Norfolk about once a month.

And he had more good news for locals in that he reckons Norfolk offers something really special. “Norfolk is a lovely area with fantastic amenities, good architecture and a high demand for housing in comparison with a limited supply of it. You have better beaches, a better coastline which is not always accessible to get to, but actually that makes it a little enclave with a strong community.”

In fact, Mr Spencer was in full support of the EDP's current campaign to save local post offices from closing, saying: “I think it is absolutely right to fight tooth and nail for that. Once post offices, shops, pubs are gone from a village they are gone forever, they never come back.”

Mr Spencer also emphasised that his business was aimed at helping local people move rather than just bringing in new buyers from outside the area.

“Most of the business

we do - 85pc - are people moving locally,” he said. “However, if you live in a popular and beautiful part of the country people do want to come and join you, that's the nature of the beast, but on a positive note, out-of-towners drive up prices which drives up all prices, including the price of properties local people are living in.”

Garrington Home Finders can be contacted on 01223 858 310 or visitwww.garrington.co.uk

Norfolk homes repossessions soar

LAURA DEVLIN

10 May 2008

Hundreds of homeowners in Norfolk and Suffolk face losing their property as the threat of repossession soared by a fifth to a peak not seen since the recession.

Lenders came under pressure to do more for people struggling with their mortgage repayments after government data showed that 384 mortgage re-possession claims have been issued in Norfolk's county courts in the first quarter of 2008, up 21pc on the same period last year.

And in Suffolk the figures were even worse with 411 claims dealt with in the county court, a rise of 33 pc. In Lowestoft alone 149 claims were processed, a rise of 49pc

The figure is above the national average, with 27,530 mortgage repossession made, up 17pc, across England and Wales.

The number of repossession claims - the first stage of the order process - was 16pc higher at 38,688 compared with the previous year. This is the highest number since 1992 when the UK was clawing its way out of the last recession.

Economists warned more rises in repossession actions were likely this year as risk-averse banks and building societies kept lending criteria tight as the credit crunch grips money markets.

Many homeowners have faced significantly higher mortgage rates over recent months as the fixed loans taken out in the cheaper lending conditions of earlier years expire.

The Citizens Advice Bureau, which has seen a 35pc increase in people facing mortgage arrears problems at the start of this year, said lenders needed to do everything in their power to help out those struggling.

“This means treating borrowers in arrears fairly and sympathetically, and being willing to negotiate with borrowers in trouble,” said its head of consumer policy Sue Edwards.

The Council of Mortgage Lenders (CML) is forecasting that the number of actual repossessions this year will be 45,000, up from 27,100 last year. There were a total of nearly 76,000 during 1991, the height of the UK's last recession, with a total of 142,905 repossession orders during the year.

Michael Coogan, CML director general, commented: “No-one wants to see repossessions rise. But risk is a part of life, and for some households circumstances change and they cannot get back on their feet. However, most people who suffer payment difficulties can get out of trouble by taking good advice, prioritising their debts, and communicating with their lender early.

“Lenders are committed to keeping the number of repossessions as low as possible, even in more challenging economic conditions. “Encouraging borrowers to take action early, by seeking advice, can make a big difference. Lenders are working hard to ensure that they contact borrowers who may be at risk of seeing their payments go up, to enable them to plan ahead.”

Housing minister Caroline Flint said families facing repossession would get free legal help to avoid losing their homes.

Free legal advice and representation at county courts across the country is part of the package to help prepare people to prepare for mortgage difficulties when fixed-rate deals end - leaving borrowers facing payment hikes.

But the move was attacked as “too little, too late” by the Tories.

Shadow housing minister Grant Shapps said: “We called on the Government to provide greater debt advice more than 18 months ago and in the last three months David Cameron has urged mortgage lenders to warn borrowers when cheap rates were coming to an end and to consider staggering rate rises.

“While we welcome the Government belatedly getting on board, it's too little too late and does nothing to help the 27,000 families who have already experienced repossession.”

A mortgage repossession order is granted by a court and entitles the claimant - usually a lender - to apply to have the occupier evicted. A claim is issued in a county court and begins an action for a repossession order - although lenders can resolve the problems with borrowers after an order has been made.

This year first-quarter orders were up 9pc compared with the last three months of 2007, with claims 7pc higher.

Despite a fall in the official cost of borrowing over recent months as the Bank of England grapples with a slowing economy, the credit crunch has prompted lenders to hike mortgage rates as they seek to rebuild balance sheets.

On Thursday, the Bank of England resisted making its fourth interest rate cut in six months as policy-makers held rates at 5pc due to inflation fears.

Commenting on the repossessions figures, property economist Seema Shah from Capital Economics said: “Unfortunately, with substantial house price declines on the way and risk-averse lenders unlikely to reverse much of the recent tightening in lending criteria, further rises are almost certain.”

Howard Archer, chief UK and European economist at Global Insight, added: “The financial pressure on many home owners is increasing, and it seems certain that repossessions will trend up appreciably over the coming months, particularly if the economy suffers an extended marked slowdown and unemployment starts rising, which seems likely.”

Housing waiting lists shock revealed

SHAUN LOWTHORPE

17 May 2008


Nearly 75,000 people in Norfolk are waiting to rent a home they can afford - and the outlook is likely to worsen as the credit crunch and economic slowdown bite.

A report by the local government association (LGA) warned yesterday that there will be two million households, or five million people, on the waiting lists for houses provided by the local council or housing associations by 2010.

Government figures for 2007 show Norfolk is second only to Essex for the numbers of households on council waiting lists - at 29,802 up from 21,002 in 2004 and 10,368 in 1997.

In Suffolk the figure is 17,145 while it is 15,464 in Cambridgeshire.

Yet the number of people affected is likely to be more than double the official household figures which do not take into account children and other dependents.

The new figures emerged amid growing fears that housing developers are beginning to mothball schemes until the economy picks up.

According to the 2007 figures the worst waiting list hotspots in Norfolk are Yarmouth 5,915, King's Lynn 5,608 and Norwich 5,256.

David Harwood, portfolio holder for community at King's Lynn and West Norfolk borough council, said councils had been blighted by government policies forbidding them to build new homes themselves and there had been a noticeable drying-up of house building schemes in the district since the turn of the year.

The downturn in the economy could force the government to rethink policies of encouraging councils to strike planning deals with developers, known as section 106 agreements, to supply low cost homes, he said.

“The problem now is the credit crunch is coming in and all the developers are stopping building, which means the properties coming in under the agreements for affordable housing are drying up rapidly,” he said. “That's going to cause problems for the government because they are relying on that to provide most of the homes.”

Clive Stockton, portfolio holder for strategic housing at North Norfolk district council, said the authority was hoping that 45pc of all new homes would be affordable under its revised local development framework, which was likely to be approved by inspectors next week.

“We have a major problem and it's getting worse,” he said. “We are doing everything we possibly can. We have a target and are pushing hard for it, but obviously it's got to make economic sense and you can't impose it if a developer can't afford it.”

Ironically, building rates for affordable homes in Norfolk have been on the rise since 2001/2 from 6pc to 17pc - yet the 633 new low cost homes built last year is still well short of the numbers needed.

The LGA report by council leaders warns that combination of economic factors are creating unprecedented demand for council and housing association homes, which councils are struggling to meet.

The last decade has seen wages rise by 35pc while house prices have shot up 156pc - pushing a home beyond the reach of many.

The credit crunch is also making it difficult for first time buyers to get on the property ladder and has seen housing associations struggle to secure loans to build new low cost homes.

Paul Bettison, chairman of the LGA's environment board said: “Now that the credit crunch is upon the country it appears that many thousands more people will be looking to councils to provide them with a permanent home as they either find it impossible to get on the housing ladder or see their home repossessed.

“With the banks overstretching their credit facilities it could well mean that in the coming months that councils will have to help pick up the pieces as people end up on social housing waiting lists.

“Even when the economic good times were rolling, councils saw ever increased pressure on their social housing stock,” he added. “The slowdown in private sector house building will eventually affect that amount of affordable housing that is being built. This will mean fewer new social homes at a time when there will be more demand for them.”

Housing Minister Caroline Flint said: “The demand for more housing, including social homes isn't new. We welcome the LGA's backing for government investment to provide 70,000 affordable homes a year by 2011, including 45,000 social homes for rent. I hope they will be instrumental in persuading their member local authorities to support plans for increased housing supply to meet the needs of local families on housing waiting lists.”

Falling prices shock for home-owners

ADAM GRETTON

30 May 2008


East Anglian homeowners were warned last night to brace themselves for more misery after a dramatic 2.5pc house price fall in the space of a month.

Experts spoke of their shock after almost £5,000 was wiped off the value of the country's homes during May, according to latest figures from Nationwide Building Society.

House sellers were urged to be "realistic" as further property price falls were predicted as the market continues to battle against the impact of the credit crunch and buyers find it more difficult to get a mortgage.

In Norfolk, where an estimated 60 branch offices have closed this year, estate agents and chartered surveyors feared more difficult times ahead in 2008 and next year. But some believe the recent slump was just a "blip" and presented first time buyers the perfect opportunity to get on the housing ladder.

The news is another blow to the millions of people already under pressure over escalating fuel and food prices and to ministers struggling with the economic downturn.

The 2.5pc decline is the largest single-month fall in the 17-year history of the Nationwide's index. The average house in Britain now costs £173,583 - 4.4pc lower than a year ago and the biggest annual decline since December 1992.

David Potter, from Norwich-based Potter and Co, who last month predicted a 30pc fall in prices over a three-year period, said the rapid downturn was surprising.

He told the EDP that he had just sold a flat in Norwich for £105,000 that was on the market for £119,000 three months ago.

"2.5pc is a dramatic loss in a month and 30pc in a year would be a shock to some people. We seem to be moving towards the bottom quicker than what we thought," he said.

Economists, who had been expecting a 0.5pc decline in May, have warned that house prices could fall to as much as 20pc by the end of next year.

But Anthony Bromley-Martin, from Strutt and Parker in Norwich, said the figures from the country's second biggest lender were "really misleading" when the majority of analysts were predicting a 10pc fall for the whole of 2008.

"Prices have been falling without question across the country and even in London. It is a buyers market. A small minority of people who bought at the peak of the market in the first half of last year with a small deposit will lose out. It is a great time to buy and go up market and for first time buyers if they find a good deal from a sensible vendor," he said.

The gloomy figures come after the British Bankers' Association reported this week a small rise in the number of loans for house purchases, to 38,704, in April, which was still 39pc down on the same period last year.

Dozens of shops and businesses on the fringes of Norwich city centre and in its suburbs stand empty and unused as our smaller retailers struggle to survive.

An Evening News investigation has found that a staggering number of out of town outlets that previously thrived, are now forlorn and forgotten.
Traders and business leaders said today a combination of factors had signalled the demise of all too many of the city's smaller firms.
This includes the credit crunch, the monopoly of the large supermarket retailers and the increasing rise of chain stores in the city centre, able to offer goods at knock down prices.

However, shoppers have been urged to give more support to the city's smaller retailers, in order to ensure the city maintains its uniqueness and does not become swamped by clone stores.
The Evening News found more than 40 boarded up shops and businesses scattered around the fringes of the city centre and the edge of Norwich.
The type of businesses ranged greatly from former corner shops to pubs, computer shops, florists, hairdressers and clothing shops.
The worst affected areas were St Augustines Street, where there were six empty properties, and Magdalen Street/Anglia Square, where there were around a dozen.
Chris Manley, owner of Progeny Computers in Magdalen Street, said he was finding it increasingly harder to survive against his competitors - in particular the supermarkets.
He told the Evening News: “I know Tesco were selling printers this month that were £5 cheaper than I could buy them from a distributor - how can you compete with that?
“We try and compete on service and quality now. Supermarkets don't specialise now, they sell horse tack, cycling equipment, golf clubs - they are trying to take over everything and in five or six years I can't envisage seeing little shops being open. It's a constant struggle.”
In the past supermarket's, in particular Tesco, has been accused of having a near monopoly in several of the UK's towns and cities.
This led to an investigation by the Competition Commission which found that five major supermarkets had substantial advantages over other, smaller, retailers whose competitiveness was likely to suffer as a result.

Nigel Dowdney, owner of the Earlham Shopper in Earlham West Centre, chairman of the West Earlham Association, chairman of Buy Local Norfolk and on the board of the Association of Convenience Shops, said it was important to keep on highlighting the benefits of supporting smaller businesses to the public.
Mr Dowdney said: “We don't want the city to become a clone town. One of the reasons I joined Buy Local was because there were figures stating there were in fact less individual shops in Norwich than other cities of a similar size.
“We need to nurture our small independent businesses.”

The problems suffered by smaller businesses have been made worse by the growing credit crisis, which is causing many people to tighten their belts when it comes to spending.
While just last week the Evening News reported how spending in Norwich city centre continues to rise, there are fears this is at a cost to retailers elsewhere in the city.
In recent years, with the opening of Chapelfield, chain stores, which can normally offer lower prices, have grown in number in the city centre.
Simon Briault, spokesman for the Federation of Small Businesses', said: “Small businesses in Norwich are under immense pressure from unprecedented increases in fuel costs, a slowdown in consumer spending and the increasing difficulty in getting credit.
“On the first of these at least the government could step in to ease the pain. The government should use the tax windfall from higher than expected oil prices to reduce fuel duties, which would benefit businesses in just about every sector of the local economy.”

Michael Palmer, shopkeeper and sub-postmaster at Salhouse Post Office and village shop, in Lower Street, said wholesalers had not helped.
He added: “If we want to have one type of pizza in the shop we have to order 14 from the wholesaler, so if we want five different types, that's 72 pizzas - we can't have that many in our freezers.”
“But we've had a few more people who use the shop now since we've tried to encourage villagers back.”
But Steve Morphew, Labour leader of Norwich City Council argued that businesses have been changing hands for years and Norwich is no different to anywhere else.
He added: “We have found that people are still using smaller shops - it's a different experience, people go for the cultural and social experience.”

Meanwhile, Caroline Williams, chief executive from the Norfolk Chamber of Commerce, said businesses just have to work that little bit harder to compete with the bigger firms.
She added: “Norwich is known for its variety of shopping and it is the independent stores which makes it such an attractive place to shop.
“Smaller stores do have to work hard to secure their footfall but if they are innovative in their presentation of goods and ensure they understand their customers needs there is good business to be done.
“The ones that work do so because they think about how to present their products, what they're selling to ensure Norwich keeps within the UK top 10 shopping destination listing.”

For more about Buy Local go to www.buy-local.net
Has your business had to close down? Contact the Evening News Newsdesk on 01603 772443 or email eveningnews@archant.co.uk

Catflap - you've said before you have a shop - how's business? Hope you're keeping afloat, and that those around you are too (unless, of course, they're competition! ).

Jobs to go at The Money Centre
30 May 2008

ADAM AIKEN, EDP DEPUTY BUSINESS EDITOR


The credit crunch yesterday claimed another victim as the country's largest independent buy-to-let mort-gage broker announced that up to a third of its staff will lose their jobs.

The Money Centre, which is based in Norwich, said the cuts were “a direct result of the impact the credit crunch on the economy”.

Staff were told by managing director Mark Alexander that up to 35 redundancies would be sought across a number of departments over the next two months following a statutory consultation period.

The company said the news reflected what was happening across the sector, with advisers, lenders and estate agents all being hit by the economic downturn.

Lynsey Sweales, a director at the company, said: “It is with reluctance we have to consider redundancies as well as budget cuts, but the recent downturn in the property market and the withdrawal by lenders of a number of buy-to-let mortgage products has resulted in slower business for us.

“We will do all we can to limit the number of staff that will be affected and to help those that are to get new jobs.”

Staff have been offered the chance to take voluntary redundancy.

The Money Centre has grown steadily over the past few years and has boomed as more people have entered the buy-to-let market. It currently employs 105 staff at its Norfolk headquarters.

“The success of the company has in large part been due to our ability to recognise what the market needs and to react quickly,” said Mrs Sweales.

“The changes we have announced will ensure we continue to be in the best shape to operate in this tighter market and to be ready when the market picks up again.”

The company, which began life in 1990, expects to report pre-tax profits of £3.4m on turnover of £22.3m in the 12 months to the end of March. That would be down from pre-tax profits of £3.6m on turnover of £21.5m in the same period last year.

Mark Alexander is managing director and co-founder of the Money Centre, which has mushroomed into the UK’s biggest buy-to-let mortgage specialist.

Mr Alexander bought a three-bedroom bungalow in Catton, Norwich, for £73,000 in 1990, but by June, 1992 its value had fallen to £42,000. He couldn’t afford to live in the property, but couldn’t sell due to negative equity. Eventually he moved out, let the property, and rented somewhere smaller. The bungalow is now part of a personal portfolio comprising more than 40 properties and worth more than £10m. He has shared his expertise with clients of the Money Centre, helping thousands of landlords build portfolios of buy-to-let properties. The business employs 260 people nationwide, including about 100 at its head office on Norwich International Business Park.

Mr Alexander was a key figure in the 1992 launch of the National Association of Commercial Finance Brokers. His main interest outside work is speedway; the Money Centre sponsors the King’s Lynn Stars team.

I don't know if you saw the Look East at 10pm - presumably a longer version of it was on the 6:30 prog - all about house builders not managing to build their target 26,000 properties per year, and how as building work was slowing there were major concerns about this...

The CPRE was worrying about how there would be fewer affordable homes being built, as a smaller proportion of the houses on each development would be earmarked as "Affordable"... It's a shame that they completely managed to neglect to mention that property prices going down would mean that houses across the board would be more affordable to everyone - not just ones that qualify for affordable housing.... Sorry, I haven't got the iPlayer link, but presume it's there.

More people want to rent

LAURA DEVLIN

10 June 2008


Demand for rental properties remains at record levels in East Anglia as people delay plans to buy their own place due to the downturn in the housing market.

The proportion of letting agents across the UK reporting demand for homes to rent outstripping supply remained at a historic high of 39pc during the past three months.

The Association of Residential Letting Agents said the imbalance between supply and demand is highest is Greater London and the South East, which for the report included East Anglia.

But despite the high levels of demand, rents fell during the three months to the end of May, with average rents for houses falling by 7pc, while the level of income that landlords can expect from flats dropped by 9pc.

The group attributed the fall to large numbers of new-build two-bedroom flats coming on to the rental market.

The survey's findings are contrary to recent reports that rents were booming on the back of the problems in the housing market.

Mortgage lender Paragon recently said strong demand had pushed the average cost of renting a home in England and Wales through the £1,000-a-month barrier for the first time.

Ian Potter, head of operations at ARLA, said: “We are seeing corrections in individual locations throughout the country. The main cause of these is the developments of new blocks of two-bedroom flats coming on-stream.

“In many places, this has had a positive effect as it has allowed the rental market to provide stability in housing at a time of volatility in the sales market. It also demolishes the myth of soaring rent levels.”

But strong demand has led to a further fall in the average length of time a property is empty between tenants, with this reducing from 24 days to 22 during the past three months.

There has also been an increase in the average length of time tenants stay in a property, with this rising from 16.1 months to 16.3 months.

The research, which was based on responses from 444 letting agents, found that the majority of landlords plan to sit tight and ride out the current problems in the housing market, with 77pc saying they were not planning to either buy or sell properties in the near future.

Property landlord Lynsey Sweales, the PR and marketing director for the Money Centre, said she had not seen a massive increase in rental prices but rental demand in Norwich had “definitely increased” for both houses and flats.

“There is a big demand,” she said.

“I had a property which was vacant for two days and then it was rented again, and what I have seen is tenants want to rent for 12 months rather than six. I think people are looking to save up for a property and want some stability.”

Meanwhile, new-build apartments and flats in Norwich have seen a slight slowdown in sales but are still attracting owner-occupiers and the buy-to-let market, according to Bidwells.

New-homes manager David Walker said: “We are going through a challenging time with some price readjustment but we are in much, much better shape than a lot of regional city and town centres.

“We sold four apartments at the old hospital site last week, and three the week before that. That's right in the heart of the Golden Triangle, so it's still selling well although we are achieving £200,000 for properties which were £215,000 to £220,000 12 months ago. I think bread-and-butter apartments around the city are probably struggling a bit more. What we have seen is that there seems to be more of a preference for properties in existing residential locations.”

More facing the scourge of poverty

SHAUN LOWTHORPE

11 June 2008


Fresh evidence of the impact of rising prices emerged yesterday as government figures showed increasing numbers of children and pensioners living in poverty.

In total, 3.9 million UK children were classed as living in poverty in 2006-07, an increase of 100,000 on the previous year.

For pensioners, the figure rose to 2.1 million, up 200,000, according to figures from the Department for Work and Pensions.

In the east of England, a quarter of youngsters are now classed as living in poverty after household bills have been paid - up from 24pc in 2005-06 - while 22pc of pensioners are classed as living in poverty - up from 21pc.

And Age Concern Norfolk said the number of calls to its help and advice line from those worried about how to make ends meet had shot up from 400 to 600 a month in the past year.

Gas and oil prices have now reached record highs, meaning higher bills for all.

However, the government report also revealed that the proportion of pensioners living in poverty had fallen from 29pc in 1998-99 to 19pc now.

Conservatives seized on the figures as a sign that the government's anti-poverty policies were not working.

Employment and welfare reform minister Stephen Timms acknowledged that the figures represented a slip.

Ministers said pensioners were facing the twin challenges of rising food and fuel costs, and they were still “100pc committed” to meeting goals to eradicate child poverty, which the government wants halved by 2010 and eliminated by 2020.

“We are committed to tackling poverty and providing opportunity for all, and these figures [show] the very substantial progress over the last decade [in lifting] large numbers of pensioners and children out of poverty in relative and absolute terms,” he said. “But we have heard that over the last year or two we have on some levels slipped back.

“It's encouraging that there has been continuing progress in reducing material deprivation and persistent poverty among both children and pensioners; reducing relative poverty, though, is difficult, particularly at times of strong economic growth.”

According to the report on households below average income, a childless couple on less than £226 a week is classed as having a low income.

Linda Gill, information and advice manager at Age Concern Norfolk, said there had been an increase in the volume of calls to the service's advice line - now around 600 a month.

“Anecdotally, the signs are they are certainly feeling the pinch,” she said.

“We are getting about a third more calls than about a year ago. We are taking calls from people having to make choices about whether to heat the house or eat.”

Daniel Cox, leader of Norfolk County Council, said the government must take its share of the blame for policies such as the scrapping of the 10p tax band and the controversial post office closures programme - which added to the burden on the vulnerable.

Norfolk is the most deprived county in the region and the council is drawing up a blueprint to tackle the issue by trying to increase access to vital services, such as health, and raise educational attainment levels.

“If they are looking for the causes of poverty, they shouldn't have to look too hard, when some of the answers can be found on the doorstop of Gordon Brown when he was chancellor,” said Mr Cox.

“Tackling deprivation is the overarching priority for the strategy and one of the things we have really tried to get across to central government is that although Norfolk is relatively prosperous, there are significant pockets of deprivation.”

Meanwhile, Norwich City Council leader Steve Morphew said tackling poverty in the most deprived wards would be the new administration's top priority - with spending targeted at the least well-off areas.

“There is one underlying theme the administration intends to promote this year,” he said.

“The scourge of deprivation is something we can now turn our attention to, as many of us have been yearning to do.”

Bleak future for construction workers

ADAM AIKEN, EDP DEPUTY BUSINESS EDITOR

12 June 2008


Thousands of construction workers across the region are facing a bleak future, with fears that the housebuilding industry might grind to a standstill.

Industry experts said that building in some areas had virtually dried up, spelling misery for a sector that has enjoyed years of growth.

One of the region's leading players yesterday said it would be cutting staff as the economic downturn continued to bite.

Persimmon Homes Anglia would not confirm that its sales over the past week had almost ceased, but it said that some jobs would go.

The news came on another turbulent day for the industry, with fellow housebuilder Barratt forced to issue a statement following market speculation about the company's health. Shares across the sector plummeted, although they recovered marginally after Barratt's announcement.

Persimmon Homes Anglia managing director Andy Fuller said: “The housing market has further deteriorated since the start of the year and difficulty in securing mortgages has lead to reduced sales across the Persimmon group, including the Anglia region, although the demand for and interest in our new homes remains relatively high among a variety of purchaser groups.

“Regrettably, as a further result of the current market conditions a number of redundancies are to be made across the group and members of staff at Persimmon Homes Anglia have entered into a consultation process.

“Naturally, this news is very disappointing, and although we do not know at this stage exactly how many office and site-based employees will be affected across the region, we will be providing all the support required during this difficult time for everyone involved.

“We can, however, confirm that we will not be closing any of our regional offices.”

Mr Fuller said that the impending reorganisation reflected the challenging trading conditions being experienced by both the wider economy and the housing sector.

“Whilst it is impossible to predict how the housing market will develop over the next few months due to the current lending environment, we expect the market to remain challenging,” he said.

“However, given the underlying requirement for housing in the UK, we remain confident in the medium and long-term prospects.”

Persimmon Homes Anglia's parent company is the only housebuilder in the FTSE 100, but it is set to fall out of the index because it share price has fallen so sharply recently.

On Tuesday, the Royal Institution of Chartered Surveyors said that house prices in East Anglia had dropped for the 11th month in a row in May, with demand falling at its fastest pace for 30 years.

Nationally, the RICS house price balance improved slightly for the first time in 10 months but it still remains a significantly depressed figure.

Despite the gloomy outlook, however, some builders remained bullish.

James Hopkins, executive chairman of Hopkins Homes, said: “Despite an undeniably difficult market, our new homes are still being bought across the whole of East Anglia.

“Since May 1, we have sold 26 properties, 14 of which are in Norfolk. At our newest development, we sold six properties at the launch just over two weeks ago and we have had several hundred inquiries from other potential buyers since then.

“It is clear that quality, well located properties are still in strong demand despite the slow down in the housing market.”

New homes slump worst since 1945
100,000 construction jobs expected to go this year

Nick Mathiason, business Correspondent
The Observer, Sunday June 15 2008

The number of homes built in Britain this year will plunge to its lowest level since 1945 and plummeting construction activity is expected to lead to the loss of 100,000 jobs. The country's most senior housebuilders confirm that completions will be around 100,000, some 70,000 less than last year.

article continues...

Debt figures reach a new high

SHAUN LOWTHORPE

16 June 2008


The numbers of Norfolk families battling rising debts has rocketed since Christmas - with the average person seeking help now owing £34,000.

As inflation rises and fuel and energy prices hit record levels a bleak picture is emerging locally of the struggle to stay financially afloat.

Those standing on the edge of financial ruin collectively owe a staggering £16m according to figures released by Norfolk Debtline - and the real total is much higher as the figures only include those who have sought help.

Since the turn of the year, the advice service, part of the Citizen's Advice Bureau, has seen a 20pc rise in people seeking help and advice to bring their finances back under control.

Such is the pressure on the service that there is a five-week wait to access help - raising fears that many will sink even further into trouble by turning to debt management companies or even loan sharks.

Last week Age Concern Norfolk said the number of calls to its help and advice line from pensioners worried about how to make ends meet had shot up from 400 to 600 a month in the past year.

Andy Cobb, manager of Norfolk Debtline, said around 7pc of the clients owe more than £100,000 and 17pc more than £50,000. The figures do not include money owed on mortgages.

“Since Christmas there has been a surge in demand,” he said. “It's a massive social problem. The credit crunch has hit some finances and we have had clients on fixed rate mortgage deals, who are hoping to access a cheap mortgage and can't.

“We aren't even scratching the surface,” he added. “Nationally around a third of enquiries are about debt, for this CAB it's about half.

“The banks and credit card companies have been cutting people's credit limits or increasing credit card rates, and all these things have tipped people over the edge.

“Rising food and fuel prices have had an effect, as more households are financially stretched now. When the housing market was up, people felt rich and if they had equity in their house they would tap into it.”

On the plus side he said the rising numbers were a sign that more people wanted to get a grip on their finances but too often people were burying their heads in the sand

“A lot of our clients who come to us, don't even have a budget, so that they have no idea of what's coming in and what's going out,” he said. “For a large chunk of the population they don't see debt as a problem - where it becomes a problem is if it precipitates a crisis because they lose their job or get divorced.

“You see people with no spare money in quite a lather over £1,000 of debt - that's quite a lot if you have only got 50p spare at the end of the month.”

Gordon Brown recently gave an extra £50m to advisory services, but locally that was only enough to fund a part-time case worker.

“It might be that some sort of levy on the credit industry could be considered because it has contributed to the problem.

Norfolk County Council spends £358,000 a year helping to fund six main Citizens Advice Bureaux and outreach services.

The authority is also a member of the consumer support network - set up to bridge any gaps in debt support while it has also teamed up with Birmingham City Council to target criminal loan sharks involved in illegal lending, who prey on the most vulnerable.

But today Lib Dem councillors will urge the authority to increase funding and see if more support and training advice can be provided.

Jacky Howe, one of the councillors supporting the initiative said: “It needs a cross party approach and a working party to look at it. A report to the council doesn't really address the problem.”

The debt figures come as it emerged that nationally people are not taking up interest-free loans from the government, which are available through local Jobcentre Plus offices, because people are not aware that they exist.

Following the meeting, Frank Harper, chairman of The Harbour Triangle Residents' Association, said: “I'm glad the plans were withdrawn, because it will give the developers more time to think about it

Personally, I would like to see more homes for old age pensioners included in the revised scheme.”

Finding fault with flagship development

SAM WILLIAMS

09 June 2008

Families living on a flagship housing development say their lives are being made a misery by a catalogue of failings by building firms.

Last month, the Evening News revealed how homeowners on the Fellowes Plain estate on the former hospital site off Wessex Street were being blighted by 20ft-high silos placed within yards of their front doors.

But today families who have shelled out up to £500,000 for brand new, three-storey townhouses have spoken out after compiling a string of complaints against developers which they say have not been put right despite weeks of talks.

Named as one of Persimmon Homes' most prestigious developments nationally, families say an adjacent building site of a new phase of the Fellowes Plain development, run by developers Charles Church and Drayton-based building firm RG Carter, is making their lives a misery. One has also reported a string of faults with his £480,000 home.

Some of the problems include:


Dust meaning they can't open their doors or windows or put washing out to dry.


Works vehicles turning in private drives, blocking access and causing a danger to pedestrians.


Noise from work regularly starting before 7am and on Saturday mornings.


Trip hazards caused by uneven surfacing.


Problems with their new homes such as faulty radiators, internal leaks and draughty windows.


Delays in the delivery of a promised green site - which is still a dustbowl a year after it was due for completion.

Retailer Richard Flatt, 59, who moved in to his £450,000 property with his wife last October, said: “All we wanted when we moved here was city life in peaceful surroundings. We don't feel we have got that now because of all these issues.”

Sales manager Stuart Mills, 33, who moved to the development in November last year with his wife, a teacher, said: “The noise is our biggest issue. We knew it was going to be a building site next door, but the hours they do are unacceptable, starting really early in the morning and going on late at night.”

Dust has also been a big problem for residents, whose complaints are now being investigated by Norwich City Council environmental health bosses.

Pensioner Shirley Hook, 73, who moved into her new home last December, added: “It is really bad, we can't open our front windows. The dust even gets through the vents and inside onto our window sills.”

Another resident, who paid £480,000 for his property, but who didn't want to be named, said he felt he had been conned as he was not warned of the problems before buying the property from developer Persimmon Homes.

The senior construction worker said: “We knew we were going to be living on a building site and we don't have a problem with that, as long as it is handled correctly.”

A spokesman for Charles Church said: “We are aware of the issues and are still discussing the matter with contractors.”

RG Carter refused to comment.

Andy Fuller, managing director for Persimmon Homes, said the firm was aware of problems with the senior construction worker's home and was doing everything possible to ensure they are rectified to his satisfaction and within a timely manner.

He added: “As with all new homes, problems can occur after completion and we endeavour to deal with all items brought to our attention as quickly as possible. However, we do acknowledge that occasionally there are cases where standards fall below those deemed acceptable and apologise for any inconvenience caused to the owner.”

This week yet again, we have seen much in the national press about the collapse of house prices - and we are certainly seeing a dramatic correction that allows affordability of purchase. I suspect, having considered the global economy and factoring in the UK's squeeze on credit availability, that the correction in house prices is long term.
This is not to say that housing will never increase in value - of course it will, inflation sees to that.
But those sellers who are sitting on their hands in the hope that prices will bounce back, do so, perhaps, in vain.
For sure, the home owner, myself included, who felt secure with the paper wealth (equity) that had been accumulated, draws no pleasure from seeing such a chunk of equity dissipate.That said no-one's home reduces in value in isolation, and as about 95pc of sellers buy on after selling, it is the value between the two transactions that matters.
Many who have owned a home for about 20 years will remember that the cost of moving up the ladder and getting the extra bedroom used to be about £25,000. To undertake the same move in 2007 would have involved a jump of £125,000 to £150,000 - simply unaffordable for most.With banks and building societies returning overnight to a more considered lending criteria (which perhaps in hindsight they should have done years ago) the property sales market is experiencing a significant correction.

It's a good piece, estate agents have nothing to gain by overvaluing and advertising a property now but everything to lose - a waste of their time, money and resources. With falling transactions comes a falling revenue stream and the need to be very focussed on the realsitic sellers out their and not the ones who are only prepared to drop their asking price by £10,000 - £20,000 on last summers valuations.

I read somewhere that there are now something like 15 houses for sale chasing a single buyer - it's a buyers market and the estate agents are now working for those that want to or can buy, not those that want to sell. They need the sales otherwise they will go under so in essence they will drive the market back down to chase sales and tempt people to buy - the estate agent is now our friend

EA as our friend sounds a bit radical but its a very good point.

Petrofac enters the elite 100
24 June 2008

PAUL HILL, EDP BUSINESS EDITOR


An oil and gas firm with growing links to East Anglia made its debut as a FTSE 100 company yesterday .

Petrofac was one of four firms to enter the UK stock market's top flight, as Alliance & Leicester, housebuilder Persimmon, Tate & Lyle and Argos-owner Home Retail Group bowed out of the premier 100 quoted companies.

The £2.3bn oil and gas services firm took responsibility in October 2003 for the management of Tullow Oil's Hewett facility in the southern North Sea and management of its facility at the Bacton gas terminal in north Norfolk.

Last year Petrofac - which builds and designs refineries and oil industry equipment - moved into a 9,000sq ft office and warehouse at Yarmouth's Gapton Hall Industrial Estate last year.

Last month the company signed a £10m deal with energy giant Centrica to maintain and manage services on North Sea rigs.

Last night Ayman Asfari , Petrofac's group chief executive, said: "Since listing in October 2005, we have delivered tremendous growth in the business and, to be recognised as one of the UK's leading companies, is a terrific achievement and a testament to the collective efforts of everyone working for the company."

Ukrainian mining firm Ferrexpo, power station operator Drax and technology group Invensys joined Petrofac on the Footsie 100.

Analysts said the quarterly revision of the composition of the Footsie reflected the strength of commodity stocks, and impact of the credit crunch on banking, retail and housebuilding.

More than a third - 36.6pc - of the Footsie's market capitalisation is now made up of commodity-related companies.

But the revision of the Footsie 100 also marks the growing power of foreign firms.

Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers, said investors looking to buy into British equities would now do better to look at the FTSE 250 Index.

"From an investors point of view, if you want a barometer of British equities and the UK economy, the FTSE 100 is becoming less and less the index to follow."

However, the FTSE 100 remains a handy gauge of the wider market's performance and the trends, he added.

"The Footsie does tend to be a sign of the times, in the same way that the markets were skewed towards technology in the dot com boom and bust at the turn of the century when 10 technology stocks were listed in the FTSE 100 before the bubble burst,' said Mr Hunter.