Birmingham Property Value Changes to 2012

Currently there are around 4,279 properties for sale in Birmingham, with an average price of £151,990. This figure represents a drop of £13,580 (-8.68%) over the past five years; in fact, property values have declined over each of the last five years.  The last three months alone have seen a fall of £674 (-0.47%).  The rental market is buoyant, with the average monthly rent sitting at £703; there are currently 2,393 properties on Birmingham’s rental market.

Comparing these statistics to the London equivalent is interesting, with the current London property market showing the following statistics:

Current Properties for Sale in Birmingham

Long Leys Court, Water Orton, Birmingham B46

First floor studio apartment with good sized lounge/sleeping area together with kitchen and fitted bathroom. Represents an ideal investment opportunity with sitting tenant.

£79,950

Ravenswood Hill, Coleshill B46

Two-bedroom maisonette reduced in price. Two double bedrooms, lounge/diner, fitted kitchen and bathroom. Leasehold with 99 Years remaining ideal Investment opportunity or first time purchase.

£99,950

Mercer Avenue, Water Orton, Birmingham B46

Reduced in price mid-terrace town house with three bedrooms, re-fitted kitchen, lounge, dining room, garage in separate block, fitted bathroom with separate shower. Freehold with no upward chain

Offers over £150,000

Coleshill Road, Water Orton B46

Traditional three-bed semi detached Home with two reception rooms and extended breakfast kitchen. Garden with access to the local park. Freehold

£249,950 open to offers

Birmingham Repossessed House and Below Market Value (BMV) Auction Agents

Pattinson

4 Fellside Road
Whickham
Newcastle Upon Tyne NE16 4JU

Tel:             0191 300 8558

Choices

Interlet House, Park Chesterfield
Chapel Road
Smallfield
Surrey RH6 9NW

Tel: 01342 777509

Birmingham Property Area Statistics

• Located – West Midlands
• Miles from London – 121 miles
• Density: Birmingham –  3,649 people per km2
• Density: London – 4,761 people per km 2
• Population: Birmingham – 1,028,700. (2009)
• Population: Greater London – 7,753,600 (2009)

Residential Areas in Greater Birmingham

The Greater Birmingham area is divided into myriad residential areas.

We hope you find this brief overview of buying repossessed properties in Birmingham a useful ‘jumping-off’ point. Whatever type of property you are interested in buying and whether it’s destined to be your own home or an investment buy, Birmingham is hard to beat in terms of choice and potential.

“More than 200,000 homeowners who live in flood-risk areas face the threat of repossession because of a stand-off between the Government and insurers.”  The reason being that an agreement currently protecting homes built in these area will not be renewed in 2013.

Under the current agreement, insurance provide cover for the thousands of homes built in high-risk flood areas as long as DEFRA (The Department of Environment, Food and Rural Affairs) keeps up its investment in flood defences.  However, according to the Association of British Insurers (ABI), DEFRA do not plan to renew this agreement when it runs out next year.  This, of course, will render these properties uninsurable, other than by taking out hugely expensive policies with payments or excess levels set ridiculously, and probably unaffordably, high.

If buildings are uninsured, the mortgagee is technically in breach of the loan agreement, rendering him or her liable to repossession.  ABI are calling for government agreement to pay the insurance for those properties deemed most at risk but, thus far, there has been no commitment from DEFRA.

Not only will this cause enormous hardship for those affected home owners, but the likelihood is that flood plain areas will become like the ghost towns seen in some northern towns and cities, with shops and properties lying vacant because they become uninsurable or unsaleable.

Already some major insurers refuse to provide cover for previously flooded homes – Direct Line, for instance, will not provide insurance cover on a home that has been flooded within the past ten years.

Oh dear, if it’s not one thing, it’s another…

Is Bristol your kind of city?  If you think it might be you’ll find lots of investment opportunity in its repossessed housing market and, for first time buyers in the South West, Bristol is a gold mine…

Living in Bristol

• Located – South west of England
• Density – 3,639 people per km 2
• Population – 398,300. (2005)
• Area – 110 km2

Bristol is commonly referred to as the capital of the South West, I prefer to think of it as the gateway to the south west but, however you describe it, Bristol is certainly the largest city in the South West of England.

Overflowing with history, Bristol is also beautiful and a haven for the ‘culture vulture’ – whatever your aesthetic and cultural tastes. Moreover, the Centre for Cities annual index, “Cities Outlook 2011″, lists Bristol as one of five UK cities to watch which “will be better-insulated from the economic impact of the spending squeeze, and have high potential to create private sector jobs.

Bristol is also a designated Science City with first-class scientific research and development carried out in its universities and business sectors.  More creative than scientific? Bristol is a key centre for the creative industries and home to such scions as Aardman Animations, best known for its Wallace and Gromit animations.

Far from being out in the boondocks, Bristol was recently ranked as having the highest quality of life in England and Wales.

Residential Areas in Bristol

Choose from picturesque, modern harbourside, Victorian terraced houses – in fact, whatever your budget or taste, you’ll find a repossessed or distressed property opportunity to suit. And don’t immediately write off those areas with a history of social problems; as with most cities, neighbourhoods change and evolve with yesterday’s ‘black hole’ becoming tomorrow’s desirable area.

• Barton Hill: Thirteen blocks of 1950s council flats within the inner city area. A reputation for crime and vandalism but also the target of government social improvement projects. Lies to the East of the city centre and close to Bristol Templemeads railway station.
• Bedminster: Lying to the south of the city centre, Bedminster also encompasses the Ashton Vale district.  Close to two railway stations: Bedminster and Parson Street.
• Bradley Stoke: A residential area, built in the late 1980s, on the north side of the city of Bristol. Named after the local Bradley Brook and Stoke Brook streams.
• Brislington:  A large area of Bristol and therefore divided into two, East Brislington and West Brislington for local government. Situated on the south eastern outskirts of Bristol and just 10 miles from Bath.
• Hartcliffe:  A post-war government housing development on the southern edges of Bristol.  This is a deprived area of the city but regeneration projects are underway.
• Henbury:  Approximately 5 miles north west of Bristol city centre. Henbury is just two miles away from junction 17 of the M5, and five miles from the M4/M5 interchange. Hengrove
• Henleaze: A residential development built between the wars, Henleaze sits to the north of Bristol city centre.  A pretty, Edwardian neighborhood.
• Horfield: On Bristol’s northern edge, together with Filton, Horfield marks the boundary between Bristol and South Gloucestershire. The A38 (the Gloucester Road) runs through the town.
• Knowle: Situated to the south of Bristol and by Filwood Park to the west, Brislington to the east, Whitchurch and Hengrove to the south and Totterdown to the north. Lots of open space provided by Redcatch Park. Strong community focus here with many community action groups.
• Knowle West: Two miles south of the city centre, Knowle West sits on a low plateau; it is the site of a 1930s council estate, built for the government slum clearance programme of that time. There are no major employers in the area, although the numerous industrial estates provide some job opportunities. Five schools, four churches, and numerous community groups provide social opportunities. Six out of eight areas in the neighbourhood are categorised economically deprived.
• Lawrence Weston: A post war housing estate in North West Bristol. On edge of the Severn flood plain and directly beneath the wooded Kingsweston Hill. Employment opportunities mainly at the port of Avonmouth – a mile across the flood plain to the west – and the associated industrial complex.  Also home to Weston Moor, a nature reserve under the management of Avon Wildlife Trust and leased from Bristol City Council.
• Lockleaze: Situated just north of Bristol and separated from Horfield by the main line Bristol to South Wales railway, Lockleaze is another post war council development; however nowadays there are plenty of privately owned properties. In 2008, however, Lockleaze was graded as one of the 10% of most deprived areas in England, with Filton Avenue North being the most deprived road in the area.  
• St. George: Sits on the edge of Bristol’s inner city area, this is an old mining area which, nowadays, is better known for its many pubs and shops. It is the target of numerous regeneration plans.
• St. Pauls: North East of the city centre, this inner suburb is well served with roads, it is: west of the M32 and bounded by the A38, the B4051, and the A4032.  The neighbourhood was one of the first Bristol suburbs, original laid out in the 18^th century. The St Paul’s area was Bristol’s centre for the 1980 riots which affected many deprived and inner city areas throughout the UK.  There were also ‘copycat’ riots in the area during the Summer of 2011, when a spate of riots once again took place across the UK. A socially deprived district, there is a strong community spirit in this area, as evidenced by the annual carnival, which attracts up to 90,000 to the area.  Redevelopment plans abound, although proposals for a 28-storey “spire” as part of the £80 million project have been dropped.
• Totterdown: To the south of the River Avon and south-east of Temple Meads railway station, Totterdown is an attractive and well kept Victorian neighbourhood, noted for the brightly painted houses. The district sits on the steep riverbank slops and features a network of very steep roads in its Eastern region that mean cars can only be parked at an angle to the kerb. Vale Street in this area is cited as the shortest residential road in England. This previously working class area was built to accommodate railway workers, however, Totterdown is now a very popular region for young city commuters.
• Withywood: Withywood sits on the southern border of Bristol city and between Hartcliffe and Bishopsworth.  Once again, regeneration plans abound for this large 1950s estate and there are proposals for a swimming pool and leisure complex as well as upgrades to local shopping facilities. Withywood forms part of the largely residential Bishopsworth area.

Across the country, every day sees 193 repossession claims and 153 repossession orders issued. CEO of Credit Action, Michelle Highman, believes these statistics serve to highlight the depth of the financial difficulties facing the population and serve to underline the vulnerability of ordinary people in the current downturn. Ms Highman, who previously worked at the Financial Services Authority and the Personal Investment Authority, recommends the charity’s Spendometer tool, which has already helped over 40,000 to:

• Set budget limits
• See their ‘spending speed’ – how much, money has been spent so far in a given week or month
• Log spending in under 10 seconds;
• Set a special “going out” function to help to limit overspending on a night out.

If you find yourself struggling with mortgage arrears, of course, there’s not much comfort to be found in these statistics – the fact that you are not alone in your difficulties doesn’t make those difficulties go away!  However, there are lots of companies in the UK – online as well as on the high street – that have been set up specifically to help.  There are also plenty of buyers around looking for quick property sales, for redevelopment or to rent back to the current house owner – even if you eventually decide not to go down this route, it’s certainly worth investigating.  However, before you begin your investigations, you need to find out the correct market value of your home – not an estate agent’s inflated opinion but the true value according to the Royal Institution of Chartered Surveyors (RICS).

There is no point in sugar coating the depth of the current economic gloom – times are tough and likely to get tougher – but if you arm yourself with good information and investigate the tools available to help you will be prepared for whatever 2012 might bring.

The Council of Mortgage Lenders (CML) believe that, with unemployment predicted to rise even further this year, more home owners will be compelled to ‘hand in their keys.’  Having said this, repossessions aren’t expected to reach the highs of 2009, although they will probably exceed the 37,000 of 2011.

The CML’s chief economist, Bob Pannel, said that falling incomes and rising unemployment are “likely to unwind some of the improvement in mortgage arrears we have seen over the past two years and lead to a somewhat higher level of possessions in 2012.”  There may be some relief to be gained by looking at the Council’s similar predictions for 2011, which proved to be unfounded.  However, they are convinced that this time the predictions are correct – they cite rising unemployment as the main cause.

Mr Pannel explained, “Over recent months, as fiscal cuts have begun to be felt, the UK has seen a sharp increase in headline unemployment figures, and the Office for Budget Responsibility envisages a higher level of joblessness persisting through next year and beyond, (and with) higher unemployment and a prospect of real incomes stabilising at best over the course of the year, we should expect to see increased signs of financial stress.”

Is London becoming Manhattan-on-Thames?  That’s the question posed by Ian Cowie in today’s Daily Telegraph.

Now in their thirty-fifth year of issuing reports on the housing market, London estate agent, Knight Frank, claim the capital is bucking the national downward trend in house prices, hitting new heights in December 2011 when London property prices were up 7% on their pre-credit crisis levels.

As far back as October 2010, Cowie explained the contradictory London market like this:

“… the international popularity ofBritain’s capital city, not just as a pleasant place to live but also as a relatively secure location to park large amounts of wealth. Russian oligarchs investing millions of pounds in Highgate mansions and American film stars in Hampstead need not fear that their property will be seized by local or central government, as can happen in other countries.”

Foreign buyers continue to inflate the London market – despite the current uncertainty triggered by the problems with the Euro and total London property market growth in 2011 was 12.1%.

The rest of the country is not faring quite so well: mortgage approvals continue to run at just 50% of the usual level and those ‘in the know,’ Halifax and Nationwide, for example, continue to predict falling prices. Halifax reported an annual fall-off of 1.3% in house prices over 2011.

While the London trend is fortunate for those who already own property, ordinary Londoners won’t stand a chance of buying in such a market – they will be forced to rent, which will, of course, push rents higher, or commute from the suburbs – and travel doesn’t come cheap nowadays, even if you can afford the expense of a season ticket. A twelve-month season ticket from Luton to London St Pancras comes in at £3,604…

So, while London property owners sit pretty and house owners in the rest of the country pray for an upturn in the market, one suspects the younger generation, desperate to gain a foothold on the property ladder, are praying for the UK property market to crash.

If you have received a repossession order your first response will probably be to panic; as difficult as it may seem – don’t, there is still time to act and prevent your home from being repossessed. Even if the repossession proceeding have started there is still quite a bit of time before the order has to be enforced – and it may also be adjourned to give you time to pay off the arrears.

Do not pay for advice, there is plenty of free advice around to help you deal with this situation and one of the best places you can go is the good old CAB

House Repossession and the Defence Form

You will receive a package of paperwork from the court, which will include:

• Copies of the claim for possession forms, completed by your lender
  
• A court hearing date
  
• A blank defence form and guidance on how to fill it out
  
• The court’s contact details
  
• Information about organisations offering free advice on repossessions
  

The Defence Form is expressly so you can tell the court about your circumstances and how they led to your current situation; you will also be given the opportunity to detail what attempts you’ve made to sort things out.

If the mortgage lender has said things that you don’t believe are true, the Defence Form is the place to argue your case. The information you give will help the judge to decide whether or not the mortgage lender needs to provide more information to prove their case. So you can see, it is important not to ignore this form but to use it to your best advantage.

In Questions 5 and 6 of the Defence Form you are given the opportunity to ask the court to scrutinize the fairness of your original mortgage agreement. If it is thought that the agreement was unfair to start off with there are number of actions open to the judge, for instance, he could make an order to extend the terms of the mortgage.

In Questions 7 to 10 of the Defence Form you can agree or disagree with the arrears figure the mortgage lender has given. This is also the place where you can propose a repayment plan, say, paying a regular amount off the arrears on a monthly basis.

Questions 11 to 25 are where you provide details of both your personal and financial circumstances. There’s a place where you list all incomings and outgoings and this will help the judge to decide whether or not to suspend the possession order. When this happens, the order is passed but you have a certain amount of time to pay off the arrears before it is actioned. Also in this section you will be able to give details of additional income – state benefits, say, or your partner’s salary – which may change the financial picture as far as the judge is concerned.

In the final section of the form you are able to explain:

• if you got into difficulties with the mortgage through no fault of your own
  
• what steps you have taken to clears the arrears
  
• any change of circumstances since the arrears built up, which mean you are in a better position to clear or reduce the arrears
  
• if you are selling or re-mortgaging the property and need more time to complete
  
• if your personal circumstances are such – for example due to ill health or disability – that a possession order would cause you particular hardship
  

It is no defence just to say you can’t pay the mortgage however!

If at all possible, you should send the defence form back to the court before the hearing – it should be returned within fourteen days at any rate. However, if time is short, just take the form to court on the day of the hearing.

The bald figures, if you would like to see them, are:

The figure for Corby is nine times higher than that for West Dorset.

The Council of Mortgage Lenders reported a rise of 15% in repossessed UK homes in the first quarter of 2011; Shelter’s figures corroborate that rise, and add to the picture by reporting a 3.3% average unemployment level in the hardest hit local authority areas. This figure compares with an unemployment average of just 1.4% in the areas with a lower repossession rate.

The majority of the repossession hotspots are in:

• North of England
• Around the Wash
• East London and out to North Kent and Essex coasts

The headline unemployment rate for England actually dropped slightly for the first quarter of 2011 to 7.7%. Nonetheless, it is expected to rise sharply later this year, with the public sector job cuts beginning to influence the figures, and a further rise in repossessions expected.

It’s interesting to note that, despite the link between unemployment and repossession noted above, unemployment in Corby has only risen by 0.9% in three years to September 2010. Mortgage lenders faced lots of criticism: it was widely believed that they had enabled borrowers to take on debt when they were really not disciplined or experienced enough to cope with the responsibility. Yet Shelter’s figures would suggest that the major cause for the high repossession rate is reduced earnings and unemployment. And Shelter’s figures are held up by those from the Consumer Credit Counselling Service; the struggling homeowners asking for their advice last year fell into the following categories:

• Unemployment:        19%
  
• Reduced Income:    28%
  
• Over-committed:    08%
  

Frightening Research

Commenting on the research figures, Shelter’s chief executive, Campbell Robb, said:

“This research paints a frightening picture of repossession hotspots across the country where homeowners are on the brink of losing the roof over their head. We know only too well that the combined pressures of high inflation, increased living costs and stagnant wages are really taking a toll on people. All it takes is one thing like job loss to tip people over the edge and into the spiral of debt, repossession and ultimately homelessness.”

Two Sides to Every Coin

We recognise, of course, that these figures represent thousands of personal catastrophes; however, they also represent opportunities.

Young couples who are desperate to start climbing the property ladder, as well as property developers, can get a more affordable property by concentrating on the repossessed houses for sale sector of the housing market.

So, if you are actively looking to buy a repossessed property, repossession hotspots can be found in:

• Fenland, next to the Wash (5.04 at-risk homeowners per 1,000)
• Harlow in Essex (4.85 per 1,000)
• Manchester (4.63 per 1,000)
• Peterborough (4.57 per 1,000)

If you are typical of millions of others then lurking quietly in the back of your mind is the fear that just one bad throw of life’s dice could see the house you’ve worked so diligently to turn into a home could be taken away from you by the banks.  This story is for you; sit back and enjoy.

Turning the Tables on the Banks: The Facts

It’s 2009 and retired policeman Warren Nyerges and his wife Maureen bought a £100,000 house on a Florida development.  They paid in cash, no mortgage required.

One year later, in February 2010, the Bank of America initiated repossession proceedings against the couple; this despite the fact that the couple had paid for the property up front and had no debt relating to it.

It was obvious that if the couple Warren and Maureen fought the action they would win; which is exactly what happened.  How could it be otherwise when there was no outstanding debt on the property?

But taking legal action is just as expensive in America as it is most other places and, despite winning their case, the Nyerges were left owing £1,500 in legal fees.

As you would expect, the couple requested the bank make recompense for this amount; after all, it was the bank’s mistake that precipitated the debt.  However, even in the face of repeated requests, the bank failed to pay out.

Turning the Tables on the Banks: The Fallout

Quite understandably, the couple was more than a little annoyed by the bank’s seemingly cavalier attitude to their plight.  They took the bank to court in an attempt to get their recompense – and they won.  The court ordered the bank to pay up.

Five months and many phone calls and letters later and still the Nyeges were £1,500 down.  So they, quite reasonably in the circumstances, took out a foreclosure order against the bank.

When interviewed by CBS News, the couple’s solicitor, Todd Allen, commented,

“They’ve ignored our calls, ignored our letters, legally this is the next step to get my clients compensated.”

And so it was that, accompanied by two policemen and a moving van, Mr Allen called at the bank to collect desks, chairs, computers – and cash from the tellers’ drawers – to reimburse the Warren and Maureen for their out-of-pocket expenses.

The local media reported that within the hour the bank manager produced a check for around £3,515.11 to cover the couple’s estimated expenses thus far.  In a statement to the local newspaper, the bank apologized, saying,

“We apologise to Mr Nyerges that there was a delay in receiving the funds. The original request went to an outside attorney who is no longer in business.”

Turning the Tables on the Banks: The Relevance to the UK

A story to bring a smile to the face of most people’s faces in these post-bank-originated recession days; but, you may be thinking, how relevant is this story to us here in the UK?

Based on figures for the first three months of 2011, by the end of the year as many as 40,000 people will have experienced, or be in the process experiencing, repossession. In May of this year, Sky News reported that 9,100 UK residents had lost their homes to the banks.

of repossession In the first three months of 2011 some 9,100 Britons lost their homes as banks repossessed them — a position as many as 40,000 people could find themselves in by the end of the year. Some calculations have 90% of homeowners at risk of repossession if interest rates rise; this chilling prediction is based on the tide of variable interest rate mortgages that has overtaken the property market.  It might seem a good idea now, when interest rates are at an historic low, to take out a variable mortgage – after all the initial repayments are going to be very affordable, but what happens when, as must inevitably happen, interest rates begin to rise again?

Turning the Tables on the Banks: The Significance to Every Homeowner

So, the Nyerges’ story was funny and heartwarming – it would make a marvelous premise for a movie – but what is its point?

The point is: repossession and the risk of repossession haven’t gone away; in fact it remains a real concern to UK homeowners.

The message is: if you have any concerns whatsoever, no matter how remote the risk might appear, we are strongly advising you to take action now.  There are people out there who will talk to you free of charge; you can contact them via the links given below.

After all, while the Nyerges’ story is good and heartwarming, if you listen very hard you can hear the nation mutter under its collective breath, “Only in America.”

Turning the Tables on the Banks: Organisations that can Help

Citizens Advice

Phone 084444 111 444

Shelter

Phone: 0808 800 4444

The National Debtline

Phone: 0800 808 4000

Find out how to buy a repossessed house for sale or below market value proprty investment in Kent.

Maybe sitting where you are now, you can’t imagine ever selling your property for a knock-down price – known in the trade as BMV or below market value – but it happens. And not just when a property is repossessed either; in fact, there are a variety of reasons for these properties coming to the market. For example, the property might belong to a large public body, such as the Ministry of Defence or the NHS; such properties are frequently sold off at well below market value, often reduced on the market price by as much as 30% (or even more in some cases).

Kent, in the South East corner of England, offers the best of all worlds: coastline, heritage landmarks, and a new high speed rail link to London (journey time 35 minutes).

Current Average Property Prices in Kent

• Flat: £167,720
  
• Terraced: £202,169
  
• Semi-detached: £232,043
  
• Detached: £427,014
  

Current Average Rental Values in Kent

• Room: £395 pcm
  
• Flat: £696 pcm
  

• House: £1,035 pcm
  

Examples of BMV Properties Currently Available in Leeds

• Ashford, three-bedroom end-terrace with market value of £165,00 on market for £132,000. Equity on completion: £33,000. Yield: 6.32%
  
• Folkestone Road, Dover: one-bedroom flat central location on market for £28,000
  
• Westwood Road, Salisbury: two-bedroom first-floor apartment on market for £114,950

Find more BMV Property Invesmtents in Kent