The Sarah Beeny Interview.....

I was delighted when the lovely Sarah Beeny - bang in the middle of her most compelling series of Property Ladder yet, and in the midst of a website launch - agreed to be interviewed by our friends at the Rat & Mouse.



Prices falling, developers hurting... is this the series the viewers have been waiting for?

When Property Ladder was first made, I remember the original commissioner saying: It's good now but it will only really come into its own when the market's not so hot. So, yes, in a way this is what Property Ladder's always been made for. People's decisions actually count... they're not just being rescued by the market. But sometimes it's been terribly painful to watch... they might have been a bit silly going into some of these projects, but the reality is very sobering.
How recently were you involved in a property development project of your own?

We [Sarah runs an investment company with her husband] have an investment portfolio, and we do bits and pieces, but I've been a little concerend about the market for a few years. From about 2005/6, particularly the 12 months leading up to the failure of Northern Rock, just the speed at which the market was going up worred me. We probably got out of the market - or at least slowed ourselves down - a little too soon.

Do you feel any genuine irritation when amateur developers ignore your advice and insist they know better? Or are you satisfied by the knowledge that it’s going to be good TV, and that’s what it’s ultimately all about?

I honestly don't think that much about the TV side, I let the others just get on with that. I suppose the reason I don't get really cross is that it's not my money. And ultimately I'd much rather they did what they think is right. Actually this series people have started taking a bit more of my advice and it slightly panics me. If you offer some advice and they don't take it you think: Oh, well, fine, whatever... and if it turns out at the end they should have done it, great. But if they change their plans and do what you suggest, that's when you feel a little bit more responsibility.

I've had moments when I've been lying in bed at night thinking: That definitely was the right advice, wasn't it? It's not an exact science, and a little bit is about going with your gut. But there's a difference between me going with my gut, and somebody else going with my gut.

Is it possible to tell fairly quickly which developers have what it takes to make a career out of it, and which don’t?

You're on the train on the way there and you talk through the project with the director, and you learn how much they've spent, what they want to do, how much they're planning to spend, and pretty much by the end of the conversation you're thinking: Crikey, they shouldn't have bought that, or: Actually that's quite a good deal. It's usually more about the project and less about the people.

Do you ever genuinely fear for the future financial security of any of the Property Ladder developers? Have you ever felt like taking one aside and quietly saying: “Look, for your own sake, just forget about it. Sell now and do somethiing else.”

There is actually one show in this series when I do actually say exactly that on camera: You're going to take a loss, all we're talking about now is how much money you lose. The possible losses could be as much as half a million. So if you could get that down to about two or three hundred thousand... that's not such a terrible situation. It sounded completely mad, but that was the situation... In a way, mitigating people's losses isn't that different to any other advice. Just more depressing.

You’ve gone on record describing runaway prices – the developer’s best friend – as a bad thing, and you’ve suggested the correction was inevitable. Could your own attitude to the property business be described as a little ambivalent?

I'm not sure they are the property developer's best friend. If you happen to have lucked out with perfect timing, that's great. But ultimately, as a developer, you should be creating a new modernised house for somebody who doesn't want to do any DIY to move into. You should be being paid for your work, not just playing the market. So ultimately I don't think runaway prices help anyone. I'd prefer a nice stable market, with perhaps a moderate amount of long-term growth. Ultimately, people need to be able to afford to move. Houses are there for living in.

Development should be a business that supplies people with houses, the market itself should be governed by the people who live in those houses.

Can we talk about Tepilo… it’s a for-sale-by-owner-project… what is your involvement and what separates it from the competition? How will it make money?

I have partners but it's my baby. I went to Codegent and asked them to build it and to build it so anybody could use it, and I'm so happy with it. It's really straightforward. We're not looking at monetising it for at least a couple of years, and eventually it will probably be about sponsoring. But for the foreseeable future it's free.

So what about the estate agents... not in your vision of the future?

I think there'll always be room for estate agents, but - like travel agents - they'll become more niche or specialist, perhaps for unusual homes, or farms, or estates, or for very large, expensive deals. I'd imagine that most of us who live in "normal" houses could find something better to do with ten grand.

What about their skills at negotiation?

To be honest, I think some estate agents are good at negotiation but an awful lot aren't. And I think you've got a better incentive to negotiate, as a vendor, than your estate agent has. It's your house... their incentive is to get a deal. Our site helps you negotiate through the technology, rather than face to face, so it's impersonal and less stressful.

Where now for the property market?

I don't think we'll see prices going rapidly up for quite a long time. I suspect we'll have a nice steady market for about 10 years.

Many thanks, Sarah, for taking the time to chat... it's very much appreciated.

I think Sarah has just nudged Kirstie Allsop from the top of my 'Favourite property developer league'. I won't advise Mrs Jackson of this just yet......

Until the next one,

Mr Jackson.

How the surveying profession failed......

There's an interesting article in the Guardian about surveyor's and how life was easy when properties were flying off estate agents' books, but the housing market downturn has raised questions about their role.

Quite what does a valuation surveyor actually do? Don't get me wrong, some of my best friends are surveyors. I'm not anti-surveyor, but ...

A report from the Bank of England this week said lenders are struggling to value homes in the current market, causing delays which are leading to the break-up and collapse of chains.



How different from the halcyon days two years ago when the job of a valuation surveyor was little more than establishing the "comparables". A tough task indeed: dropping in for a chat at a local estate agency, and finding out what similar properties have gone for. If that was too strenuous, there was always the Land Registry's website, holdings details of actual sale prices. Indeed, why even employ humans? Many lenders found it was simpler and cheaper to use "automated valuation models" during the boom years.

Yet the homebuyer still got stiffed with an steep bill for a valuation, typically around £350 on a £200,000 purchase (although often waived for remortgages).

Today the automated valuation models are close to breaking down. With so few sales, it's impossible to establish comparables. How much is a house worth on a street where there has not been a sale for a year? Valuation surveyors are having to work twice as hard on half the amount of business. Lenders want valuations pushed down, fearful of further falls in house prices. Buyers are in chains which fall apart after a low valuation prevents them from obtaining a big enough mortgage to go ahead.

The Royal Institution of Chartered Surveyors should be taking a long hard look at itself. How truly "professional" is the work of its members? Who was valuing buy-to-let flats at such absurdly inflated prices? How does a valuation surveyor get it so wrong? And what sort of action should a professional body take against members who have so discredited themselves?

The professional skills needed for the structural element of a home survey will always be essential. But the valuation bit? Clearly the profession failed, hypnotised like the rest of the country into believing markets rise in a straight line upwards.

Valuers live by the maxim that the price of a property is the amount that someone is willing to pay. But this has turned out to be nonsense. In truth, the price of a property is the amount someone is willing to lend you to buy it. Value is not in the eye of the beholder, it's in the spreadsheet of a lender.

Be aware,

Mr Jackson.

Ferrari fails to impress.....

A property developer who offered a free Ferrari to the buyer of his £1 million house has failed to sell it and is now planning on turning it into offices.

In December last year Duncan Jones said he would give away his Ferrari F430 Spider, worth £100,000, to entice offers on Tall Pines, a six-bedroom property in Henbury Road, Westbury-on-Trym, in Bristol.

The 28-year-old bought the Ferrari specifically to give it away with the mock-Georgian home after struggling to find a buyer in the months after it was put on the market in September last year - even when the asking price was cut by £300,000.



He says three buyers were interested in the three-storey house but were unable to get mortgages because lenders were asking for larger deposits as a result of the economic downturn.

Giving up hope of selling the house, Mr Jones submitted a planning application to Bristol City council in May to convert Tall Pines into eight offices after several start-up businesses had expressed an interest in renting rooms.

He says the unoccupied mansion is costing his business B&P Jones Consultants thousands of pounds each week and an eight-week wait for a decision from planners has meant he has had to make nine of his staff redundant.

Mr Jones had also planned to move his 15 staff from his offices in Wraxall to Tall Pines and rent out the Wraxall building for residential use or holiday lets.

"I can't afford to have a £1-million pound house sitting there doing nothing," he told the Bristol Evening Post.

"We had three people interested in buying but they had to drop out because they couldn't get the finance.

"Instead of asking people for a £100,000 or £150,000 deposit, the mortgage lenders were asking for £300,000 or £400,000."

I'm glad to see the banks being sensible, their daft lending policies over the last 5 years almost destroyed the British economy, could still !!!

Drop the ferrari selling price 30% and I would will buy it off him ! Same with the house.....

Until the next one,

Mr Jackson.

How to lose Billions.....

Private landlords have seen the collective value of their properties fall by £118.4bn between the first three months of 2008 and the same period this year.

According to new research from Sainsbury's Finance, as house prices have fallen, private landlords have witness the collective value of their properties fall by an estimated £324m a day.

The worst affected area is London, where the value of their properties has fallen by an estimated £37.36bn.

Lucy Hunter, landlord insurance manager, at Sainsbury's Finance said: "The environment for landlords has become increasingly difficult.

"In addition to a fall in the value of their property portfolios, rental yields have also come down because the market is now saturated with new rental properties as many homeowners look to rent their properties rather than sell.

"When faced with these kinds of pressures, it can be tempting to look at ways to cut costs. We are urging landlords not to cut back on buildings and contents insurance as doing so could prove false economy. Your property is a huge asset so it's imperative it is properly protected."

According to Sainsbury's Finance, there are some 3.19 million privately rented properties in Britain, and just over 19 per cent of properties in London are privately rented, which is the highest percentage for any part of the country.

Makes for gloomy reading - I'm off for a strong pot of Ringtons a blueberry muffin and a sit down.....

Unhappily yours,

Mr Jackson.

A 9 year old's mind......

Throughout the global financial crisis, many people have asked whether our children will make the same mistakes.

There have been calls for more personal finance lessons in schools, to help prevent young people falling into a spiral of debt when they get older.

But how much do they already know? The BBC talked to a group of six pupils, all aged nine, from Cedarwood Primary School at Kesgrave, near Ipswich, about money matters. They were: Grace, Caitlyn, Keyara, Edward, Verity, and Ben.

Below are their answers to the question

How much does a house cost?

V: £1,256.

E: £20,000.

K: £50,000.

C: I would pay £3,000 for a big house, £2,000 for a middle-size house, and £1,000 for a bungalow.

G: I would spend £55,365.01.

E: The 1p is vital

B: It is about £2,500 for a house.

BBC Rep: Do you know an average house costs about £150,000?

G: Now I know why my mum keeps on saying that we are poor!




How are we going to raise all that money?

V: Work, or get two jobs.

E: Leave it to my dad.

G: Ask your mum and dad, but they might be retired...

C: ...Will they get money?

G: Yes, the taxes you pay go to the retired people to live.

C: My nanny and grandad love me because when they look after us they get about £20 a night.

BBC Rep: Who else can we ask for money for our house?

B: If you have a credit card, can you withdraw it from the credit card?

BBC Rep: If I borrow money on my credit card, what happens?

K: It comes out as a bill. My uncle said one day that he would teach me to be a lady who uses her money properly, so he asked for £1 and said he would give it back, but with a bit more.

G: If I borrow money off my mum, I wait so long that she forgets about it. But when they borrow money off me, I never forget.

E: I'm on exactly the same track. I keep quiet about owing my mum.

V: How much does a manager of a supermarket get? In Sainsbury's, I think Mr Sainsbury's gets all the money?

K: But he's dead?

All: Is he?

V: There is also Mr Tesco...

G: ...And Mr Budgens.

E: I've heard of Mr Bean

Yes I think they're on track to make the same mistakes !

Until the next time,

Mr Jackson.

No Dogs Allowed......

David Thorne owns and writes for 27b/6, an Australian website for those who like to laugh about life. He recently received a letter from his landlord concerning keeping a dog (and other pets) in his apartment.

In Australia the Strata Agreement is the same as our tenancy agreement, what follows are the e-mails between himself and his landlord.

Very funny I'm sure you'll agree !

If only more tenants had a sense of humour like his, it would make my job so much more interesting..... You've made an old man happy this afternoon. Keep up the good work David.



From: David Thorne
Date: Thursday 21 May 2009 10.16am
To: Helen Bailey
Subject: Pets in the building

Dear Helen,

Thankyou for your letter concerning pets in my apartment. I understand that having dogs in the apartment is a violation of the agreement due to the comfort and wellbeing of my neighbours and I am currently soundproofing my apartment with egg cartons as I realise my dogs can cause quite a bit of noise. Especially during feeding time when I release live rabbits.

Regards, David.



From: Helen Bailey
Date: Thursday 21 May 2009 11.18am
To: David Thorne
Subject: Re: Pets in the building

Hello David

I have received your email and wish to remind you that the strata agreement states that no animals are allowed in the building regardless of if your apartment is soundproof. How many dogs do you have at the premises?

Helen



From: David Thorne
Date: Thursday 21 May 2009 1.52pm
To: Helen Bailey
Subject: Re: Re: Pets in the building

Dear Helen,

Currently I only have eight dogs but one is expecting puppies and I am very excited by this. I am hoping for a litter of at least ten as this is the number required to participate in dog sled racing. I have read every Jack London novel in preparation and have constructed my own sled from timber I borrowed from the construction site across the road during the night. I have devised a plan which I feel will ensure me taking first place in the next national dog sled championships. For the first year of the puppies life I intend to say the word mush then chase them violently around the apartment while yelling and hitting saucepan lids together. I have estimated that the soundproofing of my apartment should block out at least sixty percent of the noise and the dogs will learn to associate the word mush with great fear so when I yell it on race day, the panic and released adrenaline will spur them on to being winners. I am so confident of this being a foolproof plan that I intend to sell all my furniture the day before the race and bet the proceeds on coming first place.

Regards, David.



From: Helen Bailey
Date: Friday 22 May 2009 9.43am
To: David Thorne
Subject: Re: Re: Re: Pets in the building

David, I am unsure what to make of your email. Do you have pets in the apartment or not?

Helen



From: David Thorne
Date: Friday 22 May 2009 11.27am
To: Helen Bailey
Subject: Re: Re: Re: Re: Pets in the building

Dear Helen,

No. I have a goldfish but due to the air conditioner in my apartment being stuck on a constant two degrees celcius, the water in its bowl is iced over and he has not moved for a while so I do not think he is capable of disturbing the neighbours. The ducks in the bathroom are not mine. The noise which my neighbours possibly mistook for a dog in the apartment is just the looping tape I have of dogs barking which I play at high volume while I am at work to deter potential burglars from breaking in and stealing my tupperware. I need it to keep food fresh. Once I ate leftover chinese that had been kept in an unsealed container and I experienced complete awareness. The next night I tried eating it again but only experienced chest pains and diarrhoea.

Regards, David.



From: Helen Bailey
Date: Friday 22 May 2009 1.46pm
To: David Thorne
Subject: Re: Re: Re: Re: Re: Pets in the building

Hello David

You cannot play sounds of dogs or any noise at a volume that disturbs others. I am sure you can appreciate that these rules are for the benefit of all residents of the building. Fish are fine. You cannot have ducks in the apartment though. If it was small birds that would be ok.

Helen



From: David Thorne
Date: Friday 22 May 2009 2.18pm
To: Helen Bailey
Subject: Re: Re: Re: Re: Re: Re: Pets in the building

Dear Helen,

They are very small ducks.

Regards, David.



From: Helen Bailey
Date: Friday 22 May 2009 4.06pm
To: David Thorne
Subject: Re: Re: Re: Re: Re: Re: Re: Pets in the building

David, under section 4 of the strata residency agreement it states that you cannot have pets. You agreed to these rules when you signed the forms. These rules are set out to benefit everyone in the building including yourself. Do you have a telephone number I can call you on to discuss?

Helen



From: David Thorne
Date: Friday 22 May 2009 5.02pm
To: Helen Bailey
Subject: Re: Re: Re: Re: Re: Re: Re: Re: Pets in the building

Dear Helen,

The ducks will no doubt be flying south for the winter soon so it will not be an issue. It is probably for the best as they are not getting along very well with my seventeen cats anyway. .

Regards, David.



From: Helen Bailey
Date: Monday 25 May 2009 9.22am
To: David Thorne
Subject: Re: Re: Re: Re: Re: Re: Re: Re: Re: Pets in the building

David, I am just going to write on the forms that we have investigated and you do not have any pets.

Helen


The man is a genius......

Until next time,

Mr Jackson.

Lossiemouth's property prices to rocket.....?

On June 19th work commenced on building the world's first purpose built commercial spaceport, in southern New Mexico. The event delivered on the promise of an exciting new age for space exploration and development, as well as a bright future for the people of New Mexico and their children.

In attendance was Virgin Galactic president Will Whitehorn, whom I met and shared a cup of tea (not Rington's I may hasten to add) on his visit to Lossie last year.



The New Mexico spaceport development initiates construction on a cutting-edge, 110,000-plus square foot-facility using cost-effective, energy-efficient green building practices.

Spaceport America's terminal hangar facility will be built to the U.S. Green Building Council's LEED rating system. Extensive use of sustainable and clean energy technology throughout the design will ensure that the spaceport will set the standard for environmentally sound design for similar structures in the future.

The design for Spaceport America's terminal hangar facility was created by a team of American and British architects that were selected after competing in an international design competition. URS Corporation, one of the world's largest design and engineering firms, teamed with lead designer Foster Partners of the United Kingdom to submit the winning design.

Is it any coincidence that Foster Partners have been in Lossiemouth recently ? My reliable sources have informed me of several visits to date. For Lossiemouth to become the UK's first spaceport would have a huge significance for the economy of Scotland and particularly for Moray and the Highland area.

It's not simply the big boost for tourism, or the opportunities for hi-tech supplies and services. It's the increase in property prices and rentals that would see them take an intergalactic hike !

The spirit of exploration and adventure that's taken shape in the sunshine of the Californian desert at Mojave, could be on its way to this small Moray town sooner than we think. Time to start building up that portfolio ?

Roger and out,

Mr Jackson.

Very Taxing!

They say there's no escaping the cold hand of the man from her Majesty's Inland Revenue and they're probably right!

Landlords should be aware that the taxman is seeking powers to triple the amount of tax it raises from Britain’s 700,000 landlords.

HM Revenue & Customs last week proposed measures to force lettings agents to hand over the names and addresses of all landlords on their books, past and present.

The move would make it easier for investigators to identify buy-to-let investors who are failing to pay tax on their rental income or on capital gains when they sell a property.



The Revenue’s powers are limited at present – it can compel agents to disclose only details of landlords who use an agent to receive rent. However, changes outlined in a consultation paper published on HMRC’s website last week could net thousands more. All landlords who have paid a fee to a letting agent for finding a tenant would be vulnerable to disclosure, even if they are no longer on its books.

Hard though it may be at times, I would encourage all landlords to stay on the "right" side of the taxman. I'm afraid he cannot be swayed to turn a blind eye by offering him any number of my favourite Bavarian slices and lashings of Yorkshire Tea......not that I've tried of course!

Yours

Mr Jackson

You're no Bobby Davro.....

I called in to the very modern Moray Property office in Lossiemouth this week, (I had to keep my sunglasses on because of that wallpaper....).

When chatting with David over a mug of Ringtons and a blueberry muffin he was telling me about the 'interesting' calls they get from other estate agents, eager to keep a note on their prices and marketing campaigns.

'They call up pretending to be potential clients, requesting information, prices and how we market our properties', David advised. 'You can tell straight away it's another agent, by their questioning, some even put on phony accents, they end up sounding like Dick van Dyke in Mary Poppins. Plus they normally decline to leave a contact number, e-mail or even their name'.

Smiling, David told me, 'The ladies are no better, we had a call from a well known estate agent in Elgin', winking his eye as a clue to her identity. 'I believe we've had all our competitors call us now, they're certainly not in the league of Bobby Davro.....'



It seems by shaking up the property market with their fixed pricing for both property sales and rentals and their great marketing campaigns, Moray Property have their competitors worried - And rightly so.

Keep practicing the accents people, you never know when a career as an impressionist beckons....

Until the next time,

Mr Jackson.

Goodbye Estate Agents.....

Estate agents as we know them will disappear in the next 20 years...

Should Rightmove and the other portals be worried that Google could now steal their show? As Google continues to develop the property listing element on Google maps.

On the bigger issue of selling property, the role of the estate agent is going to evolve rapidly over the next 20 years, making them un-recognisable from the animals we all love and adore today.

Already high street estate agent offices are obsolete to buyers who find properties from their computers and not from shop windows.

My vision for the future is the disappearance of the high street local estate agents, replaced with a few big players housed in call centres mediating between buyer and seller, and reps in Ford Mondeos (rather than Mini's), valuing and photographing.



Estate agent fees will drop to the £1000.00 a sale mark and the world will of lost one of its most lovable characters.

I wonder if anyone will launch a 'Save our Estate Agents ' campaign?

Always forward thinking it seems - David from Moray Property has told me that they have just launched a fixed fee selling campaign - £1250.00 to sell any size, or value of property - It seems like these guys won't miss this boat..... Bon Voyage chaps....

Mr Jackson.

OFT v Foxtons

As some of you may know, this has been going on for some time.

Foxtons and the Office of Fair Trading have been locking horns in the Court of Appeal regarding Foxton's T&Cs.

Was it fair that they should charge landlords commissions when tenants decide to renew contracts, even though they've done no extra work? Was it fair they sales commission if a tenant decides to buy the property, even if they didn't formally introduce it as a potential sale?

Other lettings agents have been watching the case closely, concerned that a precedent would cost them dearly in a renewal fees... because everybody does it. Finally... a judgement. No, Foxton's T&Cs weren't fair. But not due to their content, due to their wording. They simply weren't clear enough. Is charging commission on renewals unfair in itself? No. So there you have it. Everybody's a winner... loser... winner... loser... whatever....

Glad we cleared that up.

Mr Jackson.

Dragon threatens pensioners....

A judge from the television series Dragon's Den has threatened to take a group of pensioners to court for trespassing on her land because of the position of their gardens.

The frightening looking Deborah Meaden wants to sell a plot of land owned by one of her companies to a housing developer which plans to build 48 homes.



However, the company now claims that 12 gardens adjoining the greenfield site are illegally encroaching on to the plot and the homeowners are guilty of trespass.

Homeowners in Wishings Road, Brixham, Devon, received a letter on June 19 demanding the land be returned or court action would be taken.

The residents, who have not been told how much of their garden encroaches onto the land, have never altered the boundaries of their property !

Glenys Wright, 65, said the letter she received was an attempt by Meaden to "walk all over residents" to get her own way.

She said: "Deborah Meaden is not the ethical, environmentalist that she says she is. She is a very uncaring person."

The mother-of-four moved on to the street 18 months ago and said she would not have bought the property if she had been aware of the plans.

The field, known locally as 'Wishing Field', is owned by Mudstone LLP (Limited Liability Partnership), of which Meaden is a member.

Protesters reacted furiously last year after they discovered Mudstone was poised to sell the previously undeveloped site to Millwood Homes Ltd of Newton Abbot, Devon, which wants to expand its nearby 200-home housing estate.

An original application to build 48 homes on the suite was rejected by Torbay District Council on the grounds of traffic congestion, but a revised application has now been submitted.

Campaigners have since lodged an application with the council to have the land kept as a village green.

They say the land has been used by walkers and as a children's play area for more than 60 years.....Proceeding.....

To use her own words "I for one won't be investing....."

Until the next time.

Mr Jackson.

Jacko's final fixer.....Phil Spencer

That's a headline I never thought I'd type. A you will know Phil's a friend and a reader of this blog, he'd never advised me of this....

But, according to the Sun (Please note - I don't subscribe,I read this in the waiting room of the dentist), in a piece that quotes Spencer closely, he'd been employed by Michael Jackson to find a home for the singer and family while he played his forthcoming UK dates.

He was close to getting the star to sign... after persuading some wealthy individuals to clear off and vacate their own pukka pads, but - alas - it wasn't to be.

Spencer missed out on his fee. Ticket holders miss out on what would have been some historic gigs. We all miss the self styled king of pop.

Yours Sadly,

Mr Jackson