Acquisition-hungry Countrywide eyes South East lettings businesses

Countrywide, the letting agent and property services group, is on the acquisitions trail – and has its eye on businesses in the South East.

The company, whose estate agency and lettings brands include South East-based Mann, Gascoigne-Pees and Bairstow Eves, has opened 70 lettings offices in the past seven months and is looking to continue a similar rate of growth throughout the year, through both acquisitions and organic growth.

The lettings business has doubled in the last three years to 300 branches and John Hards, co-managing director of Countrywide’s residential lettings division, wants to double it again, in branches, turnover and profits, though he won’t put a timescale on this.

Hards told Insider he was looking in particular for lettings businesses that could fit into existing estate agency branches or that filled gaps where Countrywide had no existing agencies.

Hards is looking to increase the pipeline of active potential purchases to about £10m at any one time – in addition to informal talks and “warm leads”.

“We’re constantly buying, or looking at buying. I look at a lot of businesses, though not all of them suit us.”

He said the ideal acquisition has a turnover of more than £100,000 but added: “We wouldn’t turn away anything that’s a good proposition.”

The average deal value, he said, was £500,000 to £1m – “though the bigger, the better”.

Recent purchases have included Ashton Burkinshaw in Kent and East Sussex, Hamptons in London, Ford Property Services in Portsmouth and the Letmore Group of Essex and East London.

Hards said he sees the South East as offering good potential since Countrywide has a “fairly substantial” agency network but fewer lettings businesses there.

“Acquiring some lettings businesses would be exciting for us. The whole South East is a good location and I would take a look at anything that came along.”

There are two South East businesses currently in the pipeline, both well-known names in their areas.

But Hards said the company does not discriminate when it comes to location. "The businesses we’re looking at are scattered all over the country,” he said.

Where existing business names are well established, they continue to trade under the same name, while others assume the identity of one of Countrywide’s portfolio of brands.

Acquisitions are funded from cash reserves, which gives the company an advantage in an environment where “there are not that many people out there buying”.

And Hards says decisions are taken quickly: “We’re decisive. When we look at something we will say quite quickly if it’s not for us, and we can be quick to make an offer if it is for us.”

Countrywide said it sees local letting agencies and portfolios as attractive because they offer a regular income stream. It is not so interested in estate agencies, though. “Because of the state of the market there are not many estate agencies making good profits. I’d be reluctant to part with cash for something that’s not going to be that cash generative.”

http://www.insidermedia.com/insider/south-east/48608-/

Romford welcomes new housing development

http://www.easier.com/81804-romford-welcomes-new-housing-development.html

Leading house builder Persimmon Homes Essex is continuing to invest in Essex with the launch of a brand new residential development in Romford.

Shaftsbury Mews, which is being constructed off Shaftsbury Road in the town, will consist of a selection of two, three and four bedroom properties to meet the needs of a diverse mix of local househunters.

Neil Sykes, sales director for Persimmon Homes Essex, states: “Shaftsbury Mews not only boasts a fine selection of properties designed specifically to allow local people to continue to live locally, but we’re also building the homes to Eco Code 3 meaning there will be a number of energy efficient and eco friendly features to enable homeowners to adapt a greater way of living.”

Features include solar panels to subsidise heating costs, timber frames technology to promote greater insulation, water efficient tap and shower fittings, rainwater collection butts and compost collection bins. In addition the homes are being built to be 25 per cent more energy efficient than an older equivalent property.

Prices at the development start from £299,950 for a Grovewood housetype.

Neil concludes: “We are looking forward to welcoming househunters to our new development, in Romford and assisting them with finding their dream home at a price they can afford.”

Shaftsbury Mews lies just half a mile from the centre of Romford, giving homeowners easy access to a variety of popular high street and independent shops, leisure pursuits and eateries. Great local transport links mean London’s city centre is within reach in just 30 minutes from the local train station.

To find out more about the collection of properties at Shaftsbury Mews, visit: persimmonhomes.com

Money-saving deals from Taylor Wimpey East Anglia

Taylor Wimpey offers a range of incentives to make homebuying easy for those in search of Suffolk property, new homes in Norfolk, property for sale in Cambridgeshire or houses for sale in Essex.

Leading housebuilder Taylor Wimpey is urging property-seekers in search of new homes in East Anglia to discover more about the range of fantastic incentives that make it easy to invest in a brand new home – right here, right now.

A selection of money-saving initiatives is available at Taylor Wimpey developments of Norfolk property, new homes in Suffolk, property for sale Essex and houses for sale in Cambridgeshire to suit first-time buyers and would-be movers with a property of their own to sell, whatever their individual circumstances.

Selected brand new properties in East Anglia are available with the housebuilder’s amazing Easy Start shared equity scheme, which lets qualifying customers secure their first home for just 85% of the purchase price.

Alternatively, first-time buyers can take advantage of the Deposit Match incentive, through which Taylor Wimpey doubles their down payment on selected homes with an interest-free loan for up to 10% of the property price.

Meanwhile, those who can get help with their deposit from loved ones can benefit from Family and Friends Advantage, which offers anyone who can contribute a deposit up to 20% a generous 5% annual return on their investment for five years – totalling a quarter of the investment amount.

For those with a home of their own to sell, selected family-size Taylor Wimpey properties are available with Part Exchange. This stress-free incentive offers purchasers the market value of their current property (based on the average of independent professional valuations) off the price of their new home, allowing them to sit back and relax until their new place is ready to move into.

Another great way of taking the hassle out of moving is the Easymover incentive, through which Taylor Wimpey finds a buyer for the customer’s existing home and pays the estate agents’ fees – and can even take care of removals!

Taylor Wimpey customers can alternatively benefit from a subsidised mortgage fixed at a rate of 2.99% for two years. This means buyers can enjoy competitively low monthly repayments that are safeguarded from increases in the Bank of England base rate, allowing them to plan for the future and build up savings during the period in which their mortgage would typically be at its highest.

Stacy Dornan, Sales and Marketing Director for Taylor Wimpey East Anglia, says: “Despite negative reports in the media, confidence is continuing to return to the property market, with average house prices in the East of England more than 6% higher than this time last year according to official Land Registry figures.

“And with so many different money-saving incentives available to make homebuying easier, less stressful and more affordable for everyone, there’s no doubt that now is a great time to invest in a brand new Taylor Wimpey home at one of our fabulous developments across the region.”

Right here, right now incentives are available on selected properties at the following Taylor Wimpey East Anglia developments:

CAMBRIDGE
Churchill Gardens, Cambourne
Greenfields Park, Cambourne
Lion Mills, Soham
Papermill Lock, St Neots

ESSEX
Peninsula, Dovercourt

NORFOLK
Blenheim Grange, Carbrooke
Hunters Park, Costessey, Norwich
Kings Reach, Kings Lynn
Queens Hills, Costessey, Norwich
The Hampdens, Costessey, Norwich
The Rise, Norwich 
Wellbourne Mews, Costessey, Norwich
Windmill Chase, Downham Market

SUFFOLK
Concept, Newmarket
St Edmunds Gate, Bury St Edmunds

www.Taylorwimpey.co.uk.

October residential housing price increase despite market conditions according to rightmove

The Rightmove House Price Index has seen an increase in average asking prices every October for the past 10 years, so it was perhaps not surprising to see a 3.1% rise over the past month. However given the economic backdrop of near-record stock levels and deteriorating mortgage finance it may be the case that sellers will need to drop those initial asking prices over the coming months if they are to entice buyers.

Miles Shipside, director of Rightmove, comments: “Every year, vendors coming to market after the summer holidays hope to take advantage of any positive price impetus from buyers who are keen to be in a new home before Christmas. Between 2007 and 2009, October sellers tried higher prices in spite of the ‘credit crunched’ housing market, and it’s a habit that is proving hard to kick in the ‘spending review’ market of October 2010. It’s not likely to be a successful tactic, though it is a sign that many sellers are not experiencing high levels of financial stress but can’t afford to accept a lower price if they are to make their sums stack up for the next move”.

A key question for sellers will be whether they will be missing out on early buyer interest by dropping prices once their property is on the market. Research from Rightmove this month shows how the number of webpage views a property receives in the first week of coming to market is double that of the second and third weeks combined.

Miles Shipside explains: “The entry of a property to the market always has the potential to create a buzz among watching buyers as they are on the look-out for anything new that suits their needs better than what is currently on the market. When a property is launched to market the seller’s objective is to create a sense of urgency to view amongst buyers and a feeling of fear that by not viewing they will miss out on their dream home. This strategy is enhanced if it is keenly priced as buyers will act fast to get a possible bargain. If a newly marketed property fails to initially impress and find a buyer then it can quickly go stale and get written off even though its price may subsequently be substantially reduced. A high launch price can damage your chances of securing a sale and in recession-hit markets you often end up chasing prices down and achieving less in the end.”

The government Comprehensive Spending Review also looks likely to have a negative effect on housing market sentiment and consequently challenge sellers to price more realistically in order to meet buyers at a more realistic pricing level for the finance that is available. Shipside adds: “Buyers and sellers are staring each other out, and it’s a question of who will blink first. Even if they wanted to, buyers cannot blink unless lenders release more funds for mortgages. As that’s not going to happen, there are likely to be some blinking sellers this winter!”.

Largest number of property sales in Essex

Ilford in Essex has topped a list of towns with the biggest property sales during the first half of this year.

http://www.telegraph.co.uk/finance/personalfinance/8034538/Largest-number-of-property-sales-in-Essex.html

Students To Boost House Prices In University Towns

Lloyds TSB, alongside with data from the Higher Education Statistic Agency, has promulgated research concerning house prices dynamics within and nearby university towns across the UK.

It was found that first year undergraduates usually prefer to live in halls (most courses offer accommodation), meanwhile students in their second or third year think about renting houses with their partners or friends, which in turn pushes the neighbouring local market up. In the majority of university regions prices have soared by 60% in the last five years, and this figure is even higher in universities with an increasing number of students.

For instance, Aberdeen, which is home to more than 29 thousand students, saw a house price growth of 39,6%, meanwhile the average for Scotland is only 14%. Among other examples Lloyds underlines Winchester, where a price increase completed 29pc, in comparison with the average 2.5% across the South East. The prices in Winchester are now 65% higher than the middle regional ones. By the way, 17 of the 29 towns that demonstrated the most significant uplift are situated outside Southern England.

Nitesh Patel, Lloyds TSB’s housing economist remarked that we can observe this because the demand from students’ side bears the activity all over the local market.

However, the number of students in big cities is not big enough to influence the market. London, Glasgow, Birmingham and Leeds have seen insignificant changes, despite the fact that their student populations have risen by from 30% to 70%.

http://www.e1buytoletmortgages.co.uk/news/housing-prices-news/students-to-boost-house-prices-in-university-towns-4281.html

Rockspring’s Hanover Property Unit Trust has bought the freehold of the Wollaston Industrial Estate in Basildon from Standard Life.

The trust, advised by Caisson Investment Management and represented by Montagu Evans, bought the freehold for over £5m at a net initial yield of 8.75%.

Wollaston Industrial Estate is a 130,000 sq ft property comprised of multi-let units of between 2,000 and 20,000 sq ft.

Rockspring’s Paul Crosbie says: “This acquisition continues our strategy of seeking multi-let industrial assets which require specialist asset management.  The estate has great potential and, with some careful asset management to bring added value, we expect it to perform well.”

Caisson Investment Management’s Mark Bowden said: “Historically, Basildon has always done well as a multi-let industrial location. We expect, once we have put our asset management plan in place, to revitalise the estate, bring back tenants and enhance the asset’s underlying value by focussed active asset management.”

Standard Life was advised by Strutt & Parker.

http://www.propertyweek.com/5004058.article?origin=PWdailynews