Mortgage availability is beginning to see change. In January, mortgage approvals held steady at 31,000. Although this is half of what it was last year, they have averaged 31,000 for the last six months. Mortgage lenders typically want a deposit of 20% of the purchase price which is a hefty sum to secure. Saving for a deposit takes time and in this time house prices fall. However, Northern Rock will soon begin to offer some 90% mortgages. The Bank of England is expected to lower base rates again and is also likely to increase the amount of money in the British economy, both of which will improve the supply of funds for mortgages.

The current low interest rates, although will not lead to a sudden housing market revival, do make loans more affordable which will be another positive support for both new and existing borrowers. According to Halifax, mortgage payments have fallen from 31% of gross earnings for a new borrower in the first half of 2008 to an estimated 21% in January 2009. The house price to average earnings ratio has decreased to an estimated 4.48 in December 2008 from a peak of 5.84 in July 2007; a fall of 23%. The long-term average is 4.0. Potential buyers are noticing the opportunity: according to the Royal Institution for Chartered Surveyors enquiries from new buyers rose in January 2009 for the third successive month.

Of course, there continues to be pressure on incomes with rising unemployment and the negative impact of the turbulent financial markets on the availability of mortgage finance, but the update is that there are signs that the freefall on house prices and drought of mortgage availability is easing. As such, it could be wise to buy before house prices reach bottom as with low prices, low interest rates and increased mortgage availability an eventual recovering economy could bring house prices to rebound sharply.

The total feels payable when purchasing a property for sale in the UK are among the lowest globally and sum up between 3 and 5 percent for a property that costs under 250,000 pounds. The average fees for a first-time buyer are about 6,000 pounds, which already involves conveyancing and other solicitor’s fees, stamp duty, survey fee and removals. The majority of fees are computed as a percentage of the cost of a property, thus the more costly a property, the more expensive the fees. Keep in mind that a number of fees are linked to a mortgage and if you’re a cash buyer your fees will be at a reduced cost.

What’s considered a good location is changing in the country. Don’t let your apprehensions get in the way just because you wouldn’t personally live in a particular area. Going for locations with a strong capital growth is what’s essential for success in the property business.

You should then study and fully comprehend your rental market. The rental market in the country is quite strong, but be cautious if buying in big blocks of apartments exclusively sold to investors. Keep in mind that transaction expenses can considerably cut down your returns. Stamp duty will slash your overall yield, so if you buy under 125,000 pounds, there will be no stamp duty. One of the major advantages for Irish purchasers buying in the UK is the reduced stamp duty.

Purchasing a home or property is one of the biggest financial decisions you will be making in your life. There is no ‘right’ strategy when it comes to buying investment property in the United Kingdom. A plan that may be the most ideal is a plan rooted in your long-term aims along with your financial situation.

The difference between the two is the amount they can afford to pay for the land. Therefore, as residential values have continued to soar and despite build costs also rising; it has meant that land values have largely continued to rise in line with house prices. In many cases they have actually outstripped house prices as eager developers compete with each other to get ”there hands on” more and more scarce plots of land.

Value reflects use

The value of land however largely reflects what you can do or build on it. This is controlled by the planning system and means that there is effectively a dual pricing structure. Most land is without planning permission and is in agricultural use. The value of this land reflects the economic outputs of its use. In the case of agriculture this is not a high value economic use as only relatively modest profits can be generated from large areas.

Dual pricing

This dual pricing structure represents ”on the face of it” a great opportunity for speculators to make vast profits by buying land cheap and then waiting to receive planning permission. It sounds simple. It’s not; as a town planner I have been involved in the whole tortuous process of land becoming zoned as development land.

The process can take 5 or more years to be included in the Development Plan for the area. Even areas of land on the edge of an urban area have no certainty of being included for development and political maneuverings means that land which is initially included can be removed as potential development right at the end of the allocation process.

Option agreement

All this uncertainty together with the amounts of time and money that is involved in promoting potential development sites through the process means that many sites are bought or optioned by house builders or specialist development companies with access to the necessary expertise and finance. An option agreement incidentally, is where a landowner agrees with a developer to give them the right to buy the land for a set period of time and sometimes at a pre-determined price. This gives the developer the potential to buy development land without tying up all their capital and also gives the landowner a capital sum irrespective of them being successful in their land being designated for development.

Land investment scams

This all brings me back to the reason for this article, which is two fold. Firstly, it is to educate you a little in the ”mysterious” ways of the UK planning and development system. Secondly, it is to warn you of the many land investment scams that are doing the rounds.

All you need to do is enter ”land investment” in Google to be bombarded by companies pertaining to offer irresistible opportunities for investment. The scheme in question is typical in that it offers to sell investors a plot of land for tens of thousands of pounds with the promise of large uplifts when it receives planning permission. The reality is that these schemes offer little or no chance of receiving planning permission and will stay in their existing or agricultural use for many life time if not for ever.

There are factors why Edinburgh has become attractive to property investors. The first factor is its climate that is very ideal for people who hate extreme conditions. Edinburgh is famous for its mild winters and warm summers. The place often experiences windy days. Rainfalls come every other day because its geographic location is adjacent to North Sea. It is best for UK property investment because many investors find it as an ideal place to live.

Another factor that has made Edinburgh’s real estate investment bloom is transportation. You can find easy transportation here in Edinburgh for it has a sophisticated and convenient public transport system. There are the basic transportation means such as buses and trains. Through this basic means, you can commute easily to and from other cities like Glasgow and London. This factor helps UK property investment to have more real state investors.

The population of Edinburgh is about 472,000 as estimated in 2007 and most of its citizens are living in apartments. This is why rentals and flats usually overlook UK property investment. The majority of property investors find and buy discount property units at low market value so they could lease such investments to other investors.

Indeed, wading through the plethora of housing statistics that are produced by a diverse set of UK organisations, it’s clear that UK property prices have been rising for more than a decade. In the past year alone, the average price of a UK property has risen in value by around 10%.

This property boom has been driven by a number of factors – the UK has historically low unemployment figures, with interest rates having been at low levels for much of the past ten years.

The cost of borrowing has been low, while banks, building societies and other mortgage lenders have all been keen to lend money to potential home-owners.

The property market has also seen a transition – gone are the days when the majority of buyers were simply looking for a home. Now, everyone’s looking for an investment.

Such has been the performance of the UK property market that some have even started to look at property as a means of providing for their pensions. Across the country people are snapping up properties and then renting them out.

The plan is to make money from the rental incomes, while also seeing the properties rise in value. The buy-to-let phenomenon has arrived and has been keeping the market buoyant.

Recent months have seen some warning signs appear. Darker clouds hover, in the shape of rising interest rates.

As the UK has developed a debt culture, inflation has started to rise and economists are keen to see it kept under control. The result has been some sharp increases in interest rates.

All of a sudden, the cost of borrowing is rising. Making a profit from buy-to-let, at least in the short-term, could become more difficult. There is even hushed talk of a house price crash, last witnessed almost 20 years ago.

The future of the UK property market looks far less certain.

The UK has seen a sharp fall in property yields due to overvaluation and the availability of cheap debt. UK capital values have dropped by over 15% to date, according to Philip Ingram of financial management advisory company Merrill Lynch. For some of the best available London commercial property it is worth going through a reputable specialist who can help you find the best available deals. Property in London is a buoyant marketplace as interest does not tend to be as strongly affected as other area in the UK. Commercial property bargains can still be found on the market however, without the help of experts you will find it hard to locate the kind of property you want or on the rental side the kind of lease that is best suited to you. London based RIB combines 40 years of industry experience and specialist knowledge to seek out the hottest properties in the marketplace. Using their dedicated and experienced team of property professionals you can find your search for the right commercial property is as stress free as possible.

An increasing cause for concern is the relative cost of living in London compared with areas and counties throughout the United Kingdom. Teachers, Nurses and other professionals are finding it extremely difficult in London due to the high cost of housing. Affordable property is very hard to find. What London needs are professionals to fill these critical position. With a high opposition to the expansion of greenbelt development the United Kingdom is looking to build more on brown sites located both in the inner and outer city. This would bring more affordable houses and should result in the rejuvenation of the deprived inner city areas.

Throughout the four countries there are many cultural sights with stately homes, castles, palaces and accompanying grounds in abundance. Many of these are run by different organizations such as the National Trust, Scottish Trust and the National Park Trust. Wherever you are in the UK you are never far from something of significance or of historical value.

If the property is purchased in the name of the individual there can be no doubt that its value will be assessed for inheritance tax purposes on his death. If however it is purchased in the name of an offshore company, the investor does not own an asset in the U.K, but the shares in a foreign company, which, in his circumstances are not chargeable with inheritance tax. If the company is incorporated in a tax-free jurisdiction, such as the British Virgin Islands, the final result will be that the property passes tax free to the heirs.

Before investing in the UK property you need to realize that this is not a short investment. It may take a few years before your property development business will be in a strong enough position to be able to draw capitol from it. Any capital invested in your business should be money that you do not need to support your life style, at least in the short term. To become a property investor you should be prepared to make sacrifices.