REDROW remember when family homes were family sized.

Designed to be instantly recognisable, Redrow’s New Heritage Collection is a reaction to the way all new homes had become largely indistinguishable from one another.

Responding to customer feedback, the focus of the new collection is on traditional two-storey homes rather than apartments or homes spread over three floors.

The move follows Redrow founder Steve Morgan’s return to the company. Steve decided “enough was enough” and pledged to restore the company he began 35 years earlier to its core values of quality, tradition and superior styling, with an emphasis on the family homes for which it was once known.

Now firmly back at the helm of Redrow, in his role as chairman, Steve comments: “When I left Redrow in 2000, we had a product widely acknowledged to be the best in the industry, with an average selling price around 25 per cent above the UK average. When I came back our homes were selling at 20 per cent below the market average. We had too many different house styles and no real distinguishing features.

“Feedback from the majority of our customers tells us that they want a conventional two-storey home, preferably detached, with an easily accessible garage and a garden of their own. They want something that looks traditional, perhaps evocative of the family home they grew up in, but they want it to have the latest statement-making kitchens, bathrooms and good quality fixtures and fittings.”

The New Heritage Collection, launched on February 11, at Bonhams, New Bond Street, London, is a distinct step away from the tendency among housebuilders to ‘dumb down’ the product specification in a bid to reduce build costs.

The timing of the launch is impeccable – just as Britain shows signs of recovering from the recession; Nationwide, Halifax and the Royal Institution of Chartered Surveys have all reported several months of steady improvement in house prices and / or demand.

Those who remember the early 1990s will recall Redrow’s original Heritage Range, a very distinctive set of homes that differentiated them from competitors and successfully steered them out of a similarly lack-lustre housing market. Redrow is aiming to repeat this feat with the New Heritage Collection.

A set of 35 different homes, it’s a premium housing product with more than a hint of nostalgia, influenced by the ‘Arts and Crafts’ era, but boasting a specification to meet the needs of modern lifestyles. 

Just as the Arts and Crafts era (c1850 – 1915) grew from the desire to bring back the skill and creativity of the individual craftsman and revive the simplicity and honesty in the way buildings and furnishings were made, Redrow has deliberately set out to reintroduce a high degree of individuality to the way its homes look and feel.

Steve explains: “We’ve taken some of the styles, shapes, colours and textures reflected in the Arts and Crafts movement and brought them right up to date with high-specification interiors styled for modern living.”

Evidence of Arts and Craft style housing can be seen in most villages, towns and cities, often on arterial routes. Redrow has researched, photographed and catalogued many of these homes and their features to ensure authenticity in its designs.

External features which typify the era are being reproduced within Redrow’s New Heritage Collection. These include dropped eaves, projecting plinths, bays and other distinctive window styles, often with leaded lights, timber or tiled canopies over doors and windows, supported by decorative gallows brackets, and the use of larch lap boarding as a feature. Front door colours reflect the ‘heritage’ feel, including ‘Brunswick’ green, deep burgundy and rich dark blue.

There are rough cast rendered and brick elevation versions of every housetype in the new collection, allowing individual developments to be designed in keeping with the local area, with options to adapt the styling when strict regional planning guides apply.

While the new collection consists mainly of two-storey detached family homes, there are smaller terraced and semi-detached properties to suit first time buyers, single purchasers, young families and couples looking to downsize.

The traditional exteriors hide a contemporary interior specification, featuring convivial open plan living spaces, fashionable kitchen designs with floor to ceiling units, central islands, top brand name appliances and even American style integrated fridge-freezers as standard in all properties over 1,600 square feet; plus bathrooms that are sleek, modern and pleasing to the eye.

Fully furnished New Heritage show homes are already open at developments in Lancashire, Merseyside, North Yorkshire, Derbyshire, plus North and South Wales. It will also be available soon in Bristol, Berkshire, Cambridgeshire, North Lincolnshire, and Scotland’s central belt.

For more details go to our Redrow contact page for web, phone and tv links.

In a recent release from RightMove we hear that consumer confidence has risen in the UK by 53% along with a prediction that house prices will rise in 2010 albeit slowly!

It seems that our predictions for the New Year of 2010 are on target with the interest rates still holding at 0.50% and house prices up 273% in 50 years and the average consumer feeling far more positive about house price increases for the year ahead.

Some of you may be asking whether or not it’s time to look for fixed mortgages with inflation on the up with CPI at 2.9% in December up from November’s 1.9% with controversy apparent in the press about just how quickly it could rise throughout this year, but our advice is to hold back a little longer – perhaps until the end of 2010.

The reason we say this is that most fixed rates available now are for a two year period, which could mean you having to negotiate a renewal of a fixed rate mortgage at the end of 2011, just as the competition is ‘hotting’ up and the fixed mortgage rates quite a bit higher.  If you hang on until the end of 2010 that two year period should take you through the worst of it into 2013 when the property market should have stabilised.

Another word of caution here is to be careful when choosing a lender.  If you choose the wrong one it could cost you up to £5700 a year extra! 

There is a wide variation in standard variable rates being set by the different lenders which are responsible for a difference of almost £5700 a year on a £150 000 home loan.  In simple terms, some lenders are just not passing on the cuts that they are now enjoying!  Lloyds TSB’s mortgage arm of Cheltenham and Gloucester and Nationwide BS are among the lenders offering the lowest standard variable rate at 2.5% against Chesham BS at a whopping 6.45%!  

The calculation isn’t hard to do.  At 2.5% on a £150 000 loan you’d be paying £3997.00/annum in interest but at 6.45% it would stand at £9686/annum.  Personally, I’d rather have that difference in my back pocket!  Shop around before you buy is our advice.

One of the other topics that we touched on in our predictions was the buy to let market.  Rentals are up with demand outstripping supply which is great news for those of you with property to let.   For those of you in rentals, it may be a good time to start monitoring what the new house builders are offering and see if you can your feet on the first rung of the ladder before rental prices start shooting up later this year due to that lack of demand.

House builder Redrow is releasing their New Heritage Homes portfolio on the 12th February and if these don’t suit, I’m sure they can help you find one that does!  In the meantime, take a minute to subscribe to Property Pathways monthly ezine and forward this edition to a friend to enjoy.

DITCHING the DIY and buying a brand new home could save you thousands.

Redrow has calculated that it can cost £30,000 to bring an older second hand property up to the same standard as one of its new homes, not to mention the huge outlay of time and energy.

In contrast, investing in a home from Redrow’s just launched New Heritage Collection could save you time and money as they’re constructed to a very high standard, with an up to date specification and highly polished finish. They feature stylish kitchens and bathrooms, top brand name appliances and they’re well insulated with full central heating and double glazed windows.

Kim Peters, Redrow’s group sales and marketing director says: “People think they want an older property, buy one and then spend thousands of pounds and invest a lot of energy turning something that a new home already offers.

“Inspired by the architecture, colours and textures of the Arts and Crafts movement, homes in our New Heritage Collection boast the external character of older period-style properties.

“The look and feel of the collection loses none of the integrity or style in the translation from the past to the present and each home has its own special features and proportions.”

Research has shown that a brand new home is up to 40% more efficient than one built10 years ago, which should mean lower fuel bills. A newly built home is also easy to maintain and keep clean, leaving home owners with more time to enjoy the life they’ve chosen to live. And it carries the added reassurance of a two-year guarantee for any fitted appliances and the National Home-Building Council (NHBC) 10-year ‘Buildmark’ warranty.

A national survey by SmartNewHomes.com found that cash-conscious homebuyers are increasingly looking to new homes due to their lower on-going running costs.

In a survey of over 1,000 active UK home searchers, one-in-two of the homebuyers questioned stated the low maintenance of new-build properties as their primary reason for buying new. Over 40% of respondents also cited the peace of mind offered by the 10-year new-build warranty as another key reason for choosing new over re-sale homes.  Large numbers also quoted energy efficiency and modern appliances as further motives for buying new.

The SmartNewHomes.com survey backed Redrow’s £30,000 estimate of how much it costs to bring an older home up to scratch. In fact, 13% of respondents who owned a re-sale home revealed that their overall spend on home improvements actually exceeded this amount.

And over 10% said they had to dedicate an average of more than 10 hours per week to DIY and renovations for their previously-owned home – equating to over three weeks of time for the year as a whole.

Kim adds: “The message is clear – why buy an older property and spend tens of thousands of pounds and all your spare time upgrading it, when the New Heritage Collection from Redrow has the character of bygone times but the internal specification to meet the needs of today’s modern lifestyles.”

Influenced by the ‘Arts and Crafts’ era, the New Heritage Collection is a premium housing product with more than a hint of nostalgia, but boasting a specification to meet the needs of modern lifestyles. 

Initial prices are from circa £161,495 for a three-bedroom New Heritage Collection home in Liverpool, from £202,995 for a three-bedroom detached home in Chorley, Lancashire, from £162,995 in Wrexham, North Wales, and from £179,995 in Caerphilly, South Wales.

Redrow’s New Heritage Collection can be viewed on Redrow TV which can be accessed via the ‘see Redrow’ section of the Redrow website, please click here for details.

* £30,000 estimate (inc vat) is based on upgrading a typical three-bedroom house to include new kitchen units and appliances; a new heating system; replacement wiring and remedial plastering; additional loft insulation; redecoration including materials; new bathroom suites, including ground-floor cloakroom and en-suite; replacement windows; new guttering including fitting; and replacement of fascias.

REDROW is channelling in to the digital revolution with the introduction of its very own broadband TV station, delivered via the internet.

Dedicated to all things Redrow, Redrow TV will keep customers right up to date with all the latest news, products and development films. It will be one of the first places where potential customers will be able to ‘see’ inside show homes from Redrow’s New Heritage Collection.

Complementing the company’s existing website, Redrow TV will be ‘live’ on the internet so people can access it wherever they get broadband – at home, at work or even on their mobile phone.

Kim Peters, Redrow’s group sales and marketing director, says: “These days, more than 60% of internet searches are for video content, because people would much rather watch and listen than read from the screen. Redrow TV gives them all the news they need, in a friendly format that they will want to visit again and again.

“Believed to be the first of its kind in the UK housing industry, Redrow TV will give us a unique advantage in attracting and holding the attention of home buyers and guiding them towards their Redrow purchase.”

The new TV channel will feature development overviews, detailed show home films – including the exciting New Heritage Collection – plus all the latest news, from new products and developments to wider market news, mortgages and more. The news content will be updated daily to keep it fresh, including ‘roving’ reports of site based activity.

There will also be footage to explain the various incentives and help available to home buyers, such as part exchange, Mastermove – a service to help customers sell their existing property – and the Government-backed HomeBuy Direct, which provides eligible purchasers with a 30% equity loan towards the cost of their home.

Redrow’s New Heritage Collection can be viewed on Redrow TV which can be accessed via the ‘see Redrow’ section of the Redrow website, please click here for details.

Despite the continuous bad news headlines churned out by the lenders and the media, it’s heartening to hear that the average person can now see a light at the end of the property tunnel.

With the prime interest rate sitting at an all time low of 0.5% it’s easy to forget that in April 2008 the prime interest rate was sitting at a whopping 5% having been reduced from the previous July’s 5.75%!

There has been a lot of talk about the UK recession in 2009 and while British consumers anticipate the unexpected in property, it seems we are set to continue to enjoy the impact of the current low interest rate for some time to come along with other positive 2010 predictions.

Reasons for optimism

- House prices have risen in 2009 despite the double dip warnings and we look set to enjoy a more moderate pace of house price increase in 2010

- The interest rate will remain at 0.5% which is way down on the 5.5% we had in May 2007.  This should last at least nine more months allowing us all a bit of extra cash and clearing the way for more money printing and continued low rates

- The buy to let market is seeing strong signs of improvement

- A weak pound has made British products cheaper, helping exporters

- The UK economy has shrunk less than we actually thought

- Loan lending is down due to lack of supply not demand!

- Offset mortgages are now being offered

- HomeBuy Direct has received an £80m extension. This is the government shared equity mortgage scheme where up to 10 000 first time buyers are helped to buy specified newly built homes.  This scheme has already received interest from over 32,000 people since September

- Green housing measures are increasing dramatically which can only improve our living standards

- A powerful stock market rally has boosted confidence.

- Natural disasters are at their lowest in a decade globally

- Unemployment rises have been smaller than originally forecast.

- The upcoming election will keep all parties on their toes and the power with the people – so vote!

- The effects of Quantitative Easing take nine months to work. QE began in March so we should start to enjoy its benefits around the New Year onwards.

- The ‘libor’ rate (a measure of bank trust) has fallen back to BELOW pre-crunch levels.

- France and Germany are just out of recession along with South Africa, Japan and the US

Obviously one of the biggest factors for 2010 is the upcoming election and all indicators are that the Conservatives will sweep the board with an overwhelming majority.  Considering their election promises of abolishing stamp duty and raising the threshold on inheritance tax, freezing council tax for two years and providing tax cuts for new jobs to get people back to work, it could be a better 2010 under their guidance for home owners and first time buyers.

Take a look at what a few of our serious property colleagues had to say about the forthcoming year in our Property Pathways 2010 Predictions column.

In conclusion, 2010 should see us well on our way to recovery!

GET READY FOR THE LATEST NEW HOMES FROM REDROW

Searchwells Crystal Ball Predictions for 2010!

“Business has definitely picked up since the summer and I’ve been busy moving people into new homes and lifestyles.  My enquiry book for 2010 is also healthy – although I must admit that anything is better than 2008 and the first part of 2009!

Whether the property market will pick up for a sustained period of time is hard to call as the market has changed outside of the usual seasonal norms several times this year and I predict this will continue in 2010.  The General Election (whenever it happens) and its result will effect whether potential purchasers feel confident enough to think of buying and new home and maybe selling their current home.

I predict two very different marketplaces.  First time buyers and those of us purchasing property around £500,000 in value will need to ensure they have a secure mortgage offer and also a fair purchasing price agreed before they proceed with their transaction.  If not, when the property is surveyed/valued by the mortgage provider, you could still be at risk of a down valuation and your purchase may fall through if a compromise cannot be met.  If you are buying a new home, make sure the builder offers you the best deal possible and you’ll be fine.  And, if you are selling a property make sure you have a secure offer on your property (or even be on the way to exchange) before you start looking for a new home.  My advice to you is to therefore get organised and make your offer for your next property the most attractive it can be.

On purchases over £500k and particularly on purchases above a million, I predict there will still be a shortage of good quality properties available to view and purchase.  Prices will therefore continue to rise in this sector and purchasers will need to ensure they are able to proceed to exchange as quickly as possible in order to be able to secure and acquire their next property.  Again, make sure you are well organised and focused on what it is you want – then when you find it, you’ll be in the best possible position to be able to negotiate and then proceed to exchange.

Property is still a good investment – but now it is more of a long term investment than it has been since 2007.  Remember that 99% of us aren’t property developers – so go after the best property for you and remember, buy the best location, the best build and the house that suits your needs the most.  Then I’ll predict – you’ll love your new home! “

Leonora Wollner  – Director and Co-founder of Searchwells Property Finders www.searchwells.com 01245 344 844

For the Buy to Let Market

“2010 will be the year of opportunity. The number of buy-to-let mortgages available has increased[1] and will continue to do so. “A number of providers are beginning to enter the buy-to-let space, and, as a result, existing landlords are adding to their portfolio. New landlords are also entering the market and this is the ideal time – before inflation kicks in.  Unemployment levels will dip further early in the New Year, and the affordability gap for first time buyers will increase, which will result in an increasing demand for property rentals. House prices will continue to increase, but this will not be reflected by peoples’ salaries. And, a shortage of housing will drive up prices in 2010, particular in tenant hot spots, such as London and other major UK cities.”

James Davis, founder and CEO, UPad.http://www.upad.co.uk

[1] In September 2009, there were 179 buy to let mortgage products available, compared to 3662 in August 2007. There are currently 239 buy to let mortgages available.

Kim Peters, Redrow’s group sales and marketing director says: “When it comes to predicting where the housing market will go in 2010, one thing is certain – nothing is certain! Even the experts can’t agree.

“However, even in the most challenging conditions there are always people who want or need to move and we will be doing everything we can to make sure our new homes are at the top of every purchaser’s wish-list.

“This will include the introduction of a new collection of traditional family homes, with fewer apartments and townhouses in our collection; while work started earlier this year to enhance our interiors and add value to our homes will also evolve further.

“Redrow will continue to assist home buyers as much as possible through initiatives such as part-exchange, Mastermove, HomeBuy Direct where relevant or help with deposits and other moving costs. This ability to help facilitate a move gives new homes a major advantage over the second hand sector in a more challenging market.”

Redrow has a variety of developments across England, Scotland and Wales. For more information call 0845 676 0500 or go to www.redrow.co.uk .

Mortgages and lending in 2010

We are not expecting dramatic changes in lending going into 2010 but what we will see, will be quite significant.  Rates are predicted to remain low at the start of next year but they will increase at some point and we are strongly recommending any clients committing to new mortgages to assess affordability at a higher rate to take into account future increases to both the base rate, which will, in turn affect the tracker deals. Fixed rates will be re priced ahead of rate rises too so it is advisable to consider carefully what your future payment could be. There is some concern for those clients who are on standard variable rate, unable to change to a different rate due to lower levels of equity/negative equity, or just a change in their circumstances. These clients will also need to prepare for future rate rises which could in turn lead to higher arrears levels/repossessions and therefore more pressure on lenders.

Some lenders have already begun increasing their standard variable rate even though the base rate hasn’t moved – the main reason being that this is a way to increase income. We can see more building society mergers which unfortunately does reduce competition and therefore does affect borrowers in the long run.

The self certification mortgage market is a non starter at the present time and we do not see this changing.  Many borrowers are going to be restricted when they come to move or reassess their mortgage if a rate change is due and it is essential that these clients speak to a broker for advice. They will need to plan ahead if they are looking to move and be more realistic with their accounting as proof of income will be needed.  Each lender has their own requirements for what they will accept as proof of income so it is worth taking advice in advance of when you may need to remortgage or move.

On a positive note, we do know there are new lenders waiting in the wings – we feel this will help get more unusual lending propositions moving again and some lenders who have not been lending during the last 12 months will be re launching. It is expected that lenders will become more competitive going into Spring so hopefully this will give a much needed boost to the housing market and we can look to a brighter 2010.

Salli Anstey – private wealth mortgages

In Alastair Darling’s latest budget, £500m extra support for the housing industry has been given, of which £100m is for local authorities to build energy-efficient housing.  Coupled with the other measures taken, such as commitments to reduce carbon emissions by 35% by 2020 in the UK, the £525m new support for offshore wind power projects, intended to provide enough electricity for 3.5m households, and the £405m new funding for low-carbon technology projects, one has to ask where this leaves us, the home owner.

It would seem as though the British government are determined to change the way we live and think about housing.

All over England environmentally considerate homes are being developed using cutting edge, sustainable technologies such as recycled PFA blocks, enhanced insulation, low energy lighting, ground source heat pumps and zero waste.  Rainwater harvesting may become a prerequisite for all new homes in the UK along with use of timber from sustainable forests and recycled construction materials in our country’s efforts to curb emissions.

New home builders are changing the face of living in the UK to bring construction in line with the new parameters set out by Parliament, combining consumers lifestyle requirements with newly instituted regulations by installing dual flush toilets, aerated taps, rainwater harvesting systems and traffic calming measures along with green spots (parks) and low energy usage lighting and appliances.

If this is the way of the future, what aid will be given to the consumer who has to modify their current property in order to make it saleable?  Will government take this into consideration when passing new legislation or will we simply have to shell out to modify our homes in hope of a reasonable market value?

HOME buyers can look forward to something special from developer Redrow this year.

The award winning housebuilder is launching its latest housing collection next month (February) as the company returns to its traditional focus of family housing.

The New Heritage Collection will feature the traditional looking exteriors that so many British home owners know and love but, inside, the homes will be brought right up to date with an interior specification that’s designed for 21st century living.

Kim Peters, group sales and marketing director at Redrow, says: “The feedback we get from the majority of our customers is that they want a conventional two-storey home, preferably detached, with an easily accessible garage and a garden of their own. They want something that looks traditional, perhaps evocative of the family home they grew up in, but they want it to have the latest statement-making kitchens, bathrooms and good quality fixtures and fittings.

“We have wrapped all of this up in a beautiful collection of new homes to be unveiled next month and rolled out across the country throughout 2010.”

The evolution of Redrow’s product range follows on from work during 2009 to upgrade its interiors, creating an emphasis on more convivial open plan living spaces, fashionable kitchen designs with floor to ceiling units, central islands and top brand name appliances, plus bathrooms that are sleek, modern and pleasing to the eye.  Interiors have been further enhanced for the new collection.

See next month’s Property Pathways for more on Redrow’s New Heritage Collection or look out for show homes near you.

For details of Redrow developments around the UK go to www.redrow.co.uk or call 0845 676 0500.

Redrow’s contemporary interiors

Gtr London -1.2%

South East -4.3%

South West -1.3%

W Midlands +0.6%

E Anglia +0.5%

Wales -1.9%

E Midlands -1.2%

North West -4.3%

Yorkshire -0.5%

North -5.8%

Overall  HPI being -1.2% change in the month on December 09 and an overall 1.7% change in the past year from December 08.

Halifax cite the average house price for December ‘09 at £167 664 whereas RightMove say it is now at £221 463 – down from their stated November figure of £226 440.  Most lenders agree that this is due to Seasonal slowdown.

*Halifax base their figures on mortgage approvals of loans.  RightMove base theirs on asking prices of properties as they enter the market.

We asked Upad.co.uk, the rental experts, for their advice on whether new builds are good for buy to let:

A survey by Ludlowthompson showed that, of property investors intending to expand their portfolios in the next six months, only 12% intended to purchase newly built properties. Asked the same question back in March, 26% said that new-builds would interest them.

There’s no doubt that the housing market has suffered from an over-supply of new-build properties, as developers who overbuilt during the boom try to clear their stocks, urged on by the banks who want to recoup their more speculative lending. The problem is particularly acute for those who built blocks of apartments – exactly the area that many buy to let landlords might be interested in.

On paper, this clearance stock looks as though it might be a perfect buy to let proposition: prices are low, meaning that landlords can have some flexibility over the rents they charge. This in turn will help to minimise void periods: properties will be filled and earning their keep much more quickly. Investors who can snap new-build up while its cheap could have a great capital investment which will appreciate while the housing market slowly recovers.

But investors are right to be wary. An over-supply of property for sale can, all too easily, turn into an over-supply of property for rent. While the general mood of the rental market is improving, things are not yet stable. Unemployment remains high and some predictions have it going higher for some months to come. In such circumstances, first jobbers are likely to share with friends or even stay with their parents, meaning that this usually reliable supply of new tenants may not be there. And with horror stories from the student sector of loans in chaos, “pile ‘em in cheap” apartment blocks are a risky investment indeed.

When developers have built huge apartment blocks or even several similar blocks together, properties quickly become commodities.

James Davis, Upad.co.uk’s CEO and a landlord himself, counsel’s caution: “As always, investors thinking of going into this market need to do their homework first. The thought of a property bargain can be dazzling, especially if you have an annual bonus burning a hole in your pocket and the bank’s only offering you 1%, but buying a property that you can’t let out at a profit is an expensive mistake to make.”

James says, “The golden rule is to consider supply versus demand. Developers who can’t shift new build stock might be offering it at knock-down prices, which can look as though it means you can afford to take lower rents.

But if a dozen other landlords on the same street have had the same idea, which can mean that everyone is competing in a race to the bottom, with everyone trying to undercut their neighbours. What is worse still is that if there isn’t consistent and sustainable demand for rental property in the area, over-supply can mean that some properties end up being left void for much longer than normal. It’s essential that those thinking of buying new build do their research – not only into rental prices for the area, but that they also look at how many other similar properties are likely to come onto the market at the same time as theirs.”

Those who can afford to buy up entire developments may find themselves in a stronger position, as they can control supply and thus rents more easily. Discounts available for the purchase of entire blocks are considerable, and those with the assets to do this will find themselves advantaged over smaller investors purchasing just one or two properties in a street full of others doing exactly the same thing.