Number of property millionaires hit hard by downturn

Source: http://www.zoopla.co.uk
The number of million pound properties in the UK has shrunk by 35% over the past two years, despite the recent upturn in property values, according to Zoopla.co.uk, the UK's leading house price resource. The sharp decline in house prices stemming from the credit crunch has hurt the ranks of property millionaires in the UK where, at the height of the market in late 2007, 1 in 97 properties was valued at over £1 million but today that figure stands at just 1 in 1500.

* UK's property millionaires down 35% since market peak in Nov 2007

* 57% of all UK homes worth over £1 million located in London

* North East hardest hit, losing 83% of property millionaires in past 2 years

Despite the decline in house prices, certain parts of the country remain awash with property millionaires, notably London and the South East, where four fifths (81%) of all million pound homes can be found. The capital is home to 57% of all property millionaires, with the largest share residing in Kensington (W8) where 48% of all properties are worth over £1 million. Outside the capital, Virginia Water in Surrey leads the property millionaire stakes, with 28% of homes in the area worth more than a million pounds, compared to a national average of just 0.88%.

Property millionaires in the North East have been hit the hardest over the past two years, with an 83% reduction in the number of those who can now claim to be property millionaires. Wales has also been hard hit, losing 56% of its property millionaires over the same period.

Alex Chesterman, CEO of Zoopla.co.uk, said: "The housing market downturn has taken its toll on the exclusive 'property millionaires club', reducing the number of those who can claim membership from 283,168 in November 2007 to only 183,630 today. London remains the property millionaire capital of Britain, whilst other parts of the country have seen their property millionaire ranks decimated over the past two years, with many of the former million pound pads sitting close to the threshold."

What shall we do today Brain?

The same thing we do everyday, Pinky. Try to take over the world.

Ever since the embryonic BlueDoor was first put into the cupboard next to the photocopier, Pinky and the Brain's plan for the day ahead has been our plan too.

Why not?

Is there something that you want to do but the more you think about it, the more reasons you come up with *not* to do it?

Try saying 'Why not?' a bit more often and see where it leads you.

And a bit more on arrears

The best excuse yet for late rent payments was uttered over the phone to me last week.

Coutts don't do internet banking so I haven't been able to pay you.

Really!?! I know quite a bit about Coutts and they not only have internet banking but they also provide account holders with a personal banker who is available 24 hours a day to do your personal banking bidding. Perhaps this tenant's private banker was asleep for 2 weeks?

Oh well, perhaps the standards at Coutts are slipping....

Green shoots aren't stopping rental arrears

Green shoots aren't stopping rental arrears
Source: http://www.landlords.org.uk
For landlords, life may seem as if it's finally getting easier; interest rates are down, and according to a recent RICS survey rents are on the up. But it's not all green shoots; some tenants are still facing financial pressures, which are leading to increased rental arrears.

Research conducted by the National Landlords Association (NLA), the UK's leading representative body for private-residential landlords, reveals nearly three quarters of landlords have experienced rental arrears. Worryingly, 43% of these occurred in the last 12 months.

NLA Rent Guarantee Insurance offers a way for landlords to minimise the risk from loss of rent. Should problems arise during the tenancy, the cover also provides legal expenses and a dedicated 24-hour advisory service. Available to all residential property landlords, NLA Rent Guarantee Insurance offers much needed piece of mind.

David Salusbury, Chairman, NLA, commenting on the launch of NLA Rent Guarantee Insurance said: "Landlords may not realise they can protect themselves against rental arrears, but our research clearly shows there is a need to safeguard your rental income. Unfortunately we aren't out the woods with the economy just yet, and thanks to redundancy and unemployment some tenants are struggling to pay their rent."

"While it is wise to take out insurance, landlords should not forget the importance of also taking full references and making checks at the outset of a tenancy. Keep in touch with your tenants too. If they feel they can come to you if they are facing difficulties, you may be able to come to an arrangement before rental arrears become more serious."