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Entries in May 2008
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New Land Registry figures reveal the extent of the property market inaction... transactions down by a third in the November-to-February period, compared to the same period a year ago. In the £150,000 to £200,000 bracket, sales were down 40%. More here. Meanwhile, Land Registry house price data... a less-than-significant fall of 0.2% in April, bringing the annual change down from 3.6% to 2.7%... still in the black. Specifically in London, annual growth is still up at 6.8%, although that's a significant drop from March-to-March's 10.5%, and prices fell in April by 0.5%.
Technorati Tags: property, real estate
More in this Category - _Other
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In one of the nicest roads in the area, in our opinion, this Fitzrovia mews house belongs to talented ads and docs director Daniel Barber - who was recently Oscar-nominated for a short film - and it's with Hudson Property, listed at £1.85m. Four bedrooms over five floors, and immaculate inside... particulars here.
Meanwhile, no panic in Noho [May 13, 2008]
Technorati Tags: celebrity, London, property, real estate
More in this Category - For sale
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More in this Category - Linkage
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Before you get too excited, it's (like free prescriptions) Scotland-only. It's provided by a firm of Scottish solicitors (who won't be charging advice fees) and the Bank of Ireland. There are no arrangement fees, but a parent or other close relative needs to stand as guarantor. And it's not just recommended for first-time buyers, but anybody who needs to experience negative equity in a hurry. More here.
Technorati Tags: property, real estate
More in this Category - _Other
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More in this Category - Estate agents
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A monthly fall of 2.5% for May, the biggest drop Nationwide have ever recorded, leaves the average house £5,000 cheaper more of a bargain. This leaves annual house price inflation at -4.4%.
Technorati Tags: property, real estate
More in this Category - House prices
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Just days after The Abbey cut mortgage rates and rampant bulls declared the crisis over, the news is that they're to put them up again, by between 0.15% and 0.56%, from May 29. More here.
Technorati Tags: property, real estate
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The basics of the business are simple. You have managed to mortgage yourself right up to the shoulder. Your fixed term’s come to an end, mortgages aren’t what they once were and now you’re in arrears. The message you’re getting from your lender is on the lines of ‘if this continues, you – and your family – might want to consider packing.’ It’s at such times that the sell-and-rent-back company ‘comes to the rescue’. They will buy your property from you, quickly, in cash – but often at more than 20% less than its market value – and let you stay there at a rent you can afford. You don’t own the place any more but, let’s face it, you didn’t really before. And at least you stay in the property. They get a cheap portfolio and zero void. Cool all round. Except when it isn’t.
Our publisher, on sell-and-rent-back, in his guest column for Citywire.
Technorati Tags: property, real estate, theRatandMouse
More in this Category - About
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Truckers will bring parts of London and parts of Wales to a standstill over the cost of fuel. But reports that MPs earning more than £61,000 a year might be planning to award themselves no-questions-asked annual expenses of £23,000 - to pay for £90-a-time window cleaning, £6,500 gardening, a £3,000 shower, and (unbelievably) their bloody life insurance payments - is received with a kind of what can you do? shrug. At a time when families are facing increasing mortgage and rental costs, there are only two things more hideous than our so-called "right honourable" elected representatives' wholesale and cavalier greed. 1 - their undignified and ultimately unsuccessful attempt to conceal the truth from the taxpayers (which costs the said taxpayers a further £200,000 in legal bills). 2 - this latest arrogant, unreconstructed response... a shameless attempt to ensure their future ability to thieve from the people without the embarrassment of getting caught.
Technorati Tags: London, property, real estate
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According to a survey by Halifax, homeowners are preparing for a long summer of DIY, in the hope that a spot of tarting up will add the value their properties won't gain from a naturally rising market. Forty-four per cent are apparently looking to add an average of £5,000 to the value of their homes; 12% are more ambitious, with a target of £10,000 to £25,000. Exactly how they intend to achieve this is a lot less ambitious... redecorating (71%), garden improvements (35%), new furnishings (33%), new carpets (25%), a new bathroom (21%).
Technorati Tags: interiors, property, real estate
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Rumours are surfacing that Lakshmi Mittal has bought another gaff in Kensington Palace Gardens, this time for his son Aditya. The property was on the market for £117m. Mittal's apparently denying all knowledge of the deal. We'll come back with confirmation should we find it.
Technorati Tags: London, property, real estate
More in this Category - W8
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We're talking about Lord Cadogan, the toff previously known as Viscount Chelsea, one of SW3's premier landowners, who according to this, just earned a much needed £30m in dividends from the Cadogan Group.
Technorati Tags: London, property, real estate
More in this Category - SW3
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It's been done before, but it's almost always interesting reading... this time Business Week takes $1.5m on the road to see what it will be in bricks and mortar. Not much - in the world's best cities - even during a credit crunch. The exception is, of course, Miami.
For Europeans, Miami's declining condo prices are "like Americans handing them the gift of the century," says [real estate agent David] Michonski. "The sun has not stopped shining. The beaches aren't any less white, and the whole thing costs them 30% or 40% less."
Head over to read the piece; there's a slideshow too.
Technorati Tags: London, property, real estate
More in this Category - House prices
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And now expects a fall in prices of about 7% this year, and a fall in volume of 35%. That's a revision from a -1% forecast made last October, and comes after new figures reveal a 16% drop in new loans and remortgaging March/April 2007 to March/April 2008.
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More in this Category - House prices
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On Brown's £200 million injection into shared equity:
These are pathetic gestures which will do little to shift the housing market one way or the other. With the average home costing a little under £200,000, £200 million will buy only 1,000 properties — compared with the 167,000 built last year, many of which remain unsold. As with Gordon Brown’s sale of gold reserves at the bottom of the market in 1999, all he will achieve is to make a spectacularly badly timed punt with a bundle of taxpayers’ money.
The government’s previous attempts to encourage social-housing tenants into shared-equity schemes have not proved a huge success. In 2005, it introduced the ‘Social Homebuy’ scheme designed to entice tenants to buy a stake in their homes. By last November only 88 had chosen to do so. There are good reasons why the take-up is low.
In a very interesting piece for the Spectator, Ross Clark argues that half a home isn't worth half a home.
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I once convinced a gullible friend that I'd met a man who'd exchanged and completed on a new home, only to turn up there, put the key in the "door" and discover that the whole property was made of paper. It was basically a giant, 3D photograph of a house. I thought I'd been pretty smart, until I read this. Here's the (true) story of fake lettings agent Nuruazzaman Miah, who described luxury apartments so well to would-be tenants that they parted with money without even seeing any bricks and mortar. He apparently managed to collect £3,000 from one prospective tenant in a train station... which is arguably less believable than the whole paper house story.
Technorati Tags: estate agents, property, real estate, real estate agents
More in this Category - Estate agents
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Okay, Thurrock's beyond the M25 (actually, I had to look it up), but this kind of estate agency craziness can't go uncelebrated. Russell Quirk, of Quirk Deakin, is promising to pay the difference if any house he sells is worth less in five years. He's gambling on a regeneration of Thurrock (part of the Thames Gateway expansion) and that five years is enough time for values to pick up again. Brave? Misguided? Read more here.
[With thanks to the reader who sent this in]
Technorati Tags: estate agents, real estate agents
More in this Category - Estate agents
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Brightsale’s Andy Etches tells me that listings on his website have risen 25% a month since February and that viewing levels are higher than in August 2007. He believes that vendors who would have used Brightsale alongside a traditional agent last year are happier to use the website alone, and even more people are considering adding Brightsale’s services to their high street representation. With low overheads built into the business plan, the company’s well positioned to deal with the current downturn.
Our publisher on estate agency 2.0, in his guest column for Citywire.
Technorati Tags: estate agents, real estate agents, theRatandMouse, Web2, web2.0
More in this Category - Estate agents
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Thanks to the readers who drew my attention to this remarkable piece in the Express:
Stuart Law, of Assetz House Price Index which carried out the research, said: “I am yet to see any firm evidence of a housing market crash. Values in this country have remained extremely robust in spite of the difficulties in the mortgage market. With announcements from some mortgage lenders that they are now reducing their rates, movement should return to the market and we should return to a degree of normality, perhaps as soon as September.”
Surely, the Rat and Mouse might be forgiven for finding these views just a little eccentric? But the Express piece manages to find plenty of people prepared to back Law up... including John Wriglesworth ("There is no sign of a property crash and never has been") and Peter Bolton King ("There is no housing crisis, we have no credit crisis"). The article even manages to start a paragraph with "In further good news...". I suggest you click through to it right away; it might be some time before you see its like again.
Technorati Tags: property, real estate
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There's an interesting piece in Homes & Property, predicting that current market woes are going to be no more than a temporary blip in the rise of the West End market. Here, the subject is Soho, the redevelopment of the St Martin's building, the Central St Giles project. And, of course, just plain Soho:
Behind the glaring cheap neon lights, much of old Soho is hidden. There is fine architecture — Queen Anne, Georgian and Victorian buildings — that is not immediately obvious, often being tucked away in narrow streets and alleys. Increasingly, pockets of property, neglected upper floors above shops and small buildings are being turned into flats and converted from offices to residential use.
Too right... peel off the hooker's facepaint and it's a beautiful part of London... perfectly situated, too. But isn't that facepaint what makes Soho Soho? And it's still one of the few places in town where you can find independent shops that aren't just catering for the Primrose Hill or Chiswick crowd... ie. that sell stuff you actually need. So the question remains... would it be possible to reinvent Soho as a family-friendly residential area in any way in which it remains recognisable?
Technorati Tags: London, property, real estate
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In an extraordinary development, asking prices rose in May - according to Rightmove - by 1.2%. What's more, the figure masks a significant amount of regional variation... the majority of regions showed reduced expectations, but in the house price happy south east, homeowners have been asking 6% more for their homes. Optimism? An attempt to factor the inevitable negotiation into the asking price? Whatever... it's unlikely to help. More here.
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More in this Category - House prices
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Halifax was one Rightmove's founding partners, along with Countrywide, Connells and Royal & Sun Alliance, but the news is that they've just bailed, selling their entire 13.1% holding. Rightmove's share price has dropped today, but not catastrophically. The sale follows bearish predictions by Rightmove, a company whose fortunes are linked closely with the fortunes of the housing market. More here.
Technorati Tags: estate agents, property, real estate, real estate agents, Web2, web2.0
More in this Category - Property online
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She was in town launching a new perfume, when she apparently mentioned to Metro:
"You know, I just love British men. I love their little cute accents and even more their manners. That's the most important thing."
What? Where's she been? She later goes on to talk tentatively about a future London move. We're skeptical.
Technorati Tags: celebrity, London, property, real estate
More in this Category - Celebrity homes
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Controversial Streatham street art [This Is Local London]
Tips from the architects [Times]
Inside Britain's "best home" [Independent]
Pigs' second homes trough exposed [Reuters]
The Rat and Mouse - because Londoners think about property every three seconds
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More in this Category - Linkage
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Slightly disappointingly, we're talking equivalents. The research, conducted by specialist movers Cadogan Tate, reveals that the average removal man walks the equivalent of London-to-Kathmandu, climbs up and down enough stairs to take them to the peak of Everest and back 150 times, and lifts and carries the weight equivalent of 30,000 yaks.
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More in this Category - _Other
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The Rat and Mouse welcomes news that the OFT is investigating sale and rent back schemes... a practice in which homeowners at risk of repossession sell properties at bargain basement prices to companies and then rent from them. Certainly, there's an argument for avoiding repossession by whatever means... but we've been very interested in some of the marketing methods applied by some of the firms (including the devious suggestion, by one firm, that it's a pressure group acting against repo-happy lenders). More in this in the very near future... and, in the meantime, if you've had experience, good or bad, with any of these firms, we'd be interested to hear from you.
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Eighty offices, 700 staff and a suspension in trading "pending clarification of its financial position". Part owned by colourful private equity billionaire Vincent Tcheguiz, Humberts issued a profits warning in January, and fired some of its executive appointments. Two days ago the new chairman began to express doubt about the company's future... whether it could meet conditions that would enable a rescue package. The Rat and Mouse says... watch this space, closely.
Technorati Tags: estate agents, real estate agents
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A downturn in the commercial property sector is being blamed for a possible delay in the construction of 20 Fenchurch Street's Rafael Vinoly-designed "walkie-talkie" skyscraper. Developers Land Securities posted its first annual loss, yesterday, in almost two decades.
Technorati Tags: London, property, real estate
More in this Category - EC3
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Mervyn King has painted a gloomy picture of the UK economy, effectively scuppering realistic hopes of an interest rate cut with a grim quarterly inflation report. More here.
Technorati Tags: property, real estate
More in this Category - _Other
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Would the landlords – over-mortgaged into negative equity – start dumping properties on the market en masse, precipitating the crash of all crashes while they squealed like pigs drowning in a rough sea of schadenfreude? Plenty of tenants, sections of the media, and simply greed-repulsed bystanders have been lining up to wave at them on their way down. But, as yet, there’s little sign of a storm. Or is there?
Our publisher, and buy-to-let, in his guest column at Citywire.
Technorati Tags: property, real estate, theRatandMouse
More in this Category - Letting
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Not according to wealth-bulletin, a little journal us property blogging moguls like to peruse occasionally. The story is that hot-on-the-heels of the Candies' Noho Square development, there's a constant stream of art scene trendies and gallerinas finally flooding into a potentially important little pocket of the west that's somehow lacked identity for a very long time.
Technorati Tags: London, property, real estate
More in this Category - W1
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I don't want reproduce the picture, because it's a scoop and I'll probably get sued, but click this for a nice close-up. It's a picture of "Housing Minister" Caroline Flint's Cabinet briefing notes, caught by a photographer as she waived them around while entering No. 10. "These things happen," she said, afterward. They do - but they shouldn't, especially with economic confidence at an all-time low, the market ruled by sentiment, and fear currently a knife-edge from panic. The notes revealed that Government officials expect house prices to dip 5%-10% "at best" this year, and stated "we can't know how bad it will get" (which - if you think about it - is kind of obvious, but Flint still needed it written down). Really, it's another fumble... another moment of clumsiness that will cost British people, none of whom will have voted for a Government of teenagers led by a damaged class bully. The Rat and Mouse has no party political agenda whatsoever (but rather takes the view that the very act of running for a public position is enough to demonstrate unsuitability). In this instance, though, it's time Gordon Brown and his mediocre but oh-so arrogant cabinet called an election.
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"I've just gazundered a 70-year-old lady who is undergoing a hip replacement,'' said Blavier, 39. ``You can't get a scenario to make you feel more guilty. But this is not my hobby. It's what helps me make a living.''
Oh, that's okay then, mate. Except, technically, it's neither an excuse nor the whole truth. (Sports massage therapist Blavier actually makes his living rubbing the thighs of people richer than him.) The quote is from an interesting piece in Bloomberg on the subject of gazundering. As our publisher recently noted, gazundering's ethically complex, the result of a system that applies business transaction rules to home transactions, and trusts both parties to behave like gentlemen. So when you match a poorly geriatric with an avaricious masseur, ugliness is almost certainly guaranteed.
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No, not Kevin Rowland, Kelly Rowland - one of the other ones in Destiny's Child and a different prospect all together. Apparently, she was seen at Mamilanji on Saturday night, where she tested the piano and a DJ pal tested the decks. All were in order, and so she's now testing property in Chelsea. Estate agents... scramble!
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More in this Category - Celebrity homes
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The Royal Institution of Chartered Surveyors paint a gloomy picture this morning... the lowest number of transactions since records began in 1978. Eighty-two per cent of surveyed agents report falling prices between February and April, and the downturn is spreading everywhere, including Scotland (which - oddly - had been continuing to show price rises while the rest of the UK was stultifying). According to agents, unreasonably tight lending conditions have a lot to answer for, and it's interesting to note that other figures this morning reveal that average interest rates are up 0.4% despite recent cuts.
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More in this Category - House prices
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According to Government figures, more than 30% of new London homes are being built on former gardens. Although this isn't about people building mini-homes on their lawns (the majority of cases are developers knocking existing houses down and replacing them developments that extend into the former gardens), it's still not a good trend for quality of life in the Capital. More here.
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The BBC is trailing interesting research from its new series of The Truth About Property that suggests that not only are more people "crash-proof" than in the early 1990s (it would take a house price drop of 56% to put the average borrower into negative equity), but that a house price crash would be far from entirely unwelcome, even among the property-owning class. People, apparently, are seeing a fall in values as an opportunity to trade up for less. The last series of this show was excellent, the Rat and Mouse has high hopes for series two, starting tonight, at 8pm, on BBC 2.
Technorati Tags: property, property TV, real estate
More in this Category - Property TV
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It's a blue and white beach hut near Southwold, and it's offers over £70,000. According to this, local agents are expecting something more like £80,000. According to the particulars it does come with some plastic chairs, windbreaks and a kettle.
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More in this Category - For sale
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Business is booming in the repo sector, with new figures showing that home repossession orders increased by a fifth in the first quarter of the year (compared to the same period in 2007). They're also up 9% on the previous quarter. The figures come courtesy of the Ministry of Justice, and they'll be received with much interest, as the first clue to how over-stretched homeowners are coping with the downturn.
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Property search engine Zoomf have announced a new feature they're calling "Boost". Aimed at estate agents, it borrows its MO from Google Adwords. Agents pay a set monthly amount to see a priority ad appear alongside relevant geographical search results, but are only charged when they receive leads. Unused credit carries over to the following month. It's a slick idea... although Zoomf could do with a page explaining/introducing it. And if you're browsing with Safari, you appear to be out of luck this morning. (I've just emailed the Zoomf team... I'll post their response.)
Technorati Tags: property, real estate, Web2, web2.0
More in this Category - Property online
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Interesting, Australian, Web2.0 action from Streetfolio... a "simple property management" solution aimed at property investors and buy-to-let landlords. Plug in a few details of your portfolio... price paid for each property, current value, rental income, mortgage outgoing, and the web application converts the information into a handy cashflow statement and an analytics page, so you can feel on top of your investments. There's a contacts and reminders section, too, plus a place for insurance and mortgage information. Does it do anything an analogue filing cabinet can't do? No. Will it make you more likely to stay on top of things in these troubled times? Possibly. It's free to manage one property, then there's a sliding scale of membership depending on the size of your property portfolio, but it's not expensive. All the examples are Australian, but don't let that put you off, its scope is international.
Technorati Tags: property, real estate, Web, Web2, web2.0
More in this Category - Property online
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At 5%. Few people expected back-to-back cuts; but there's a lot of talk of a cut to 4.75% next month. More here.
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According to Hamptons estate agents, properties in the £1m region have been hit the hardest by the slump, with prices falling by as much as 15% since September 2007. Only the super-prime sector - propped up by overseas buyers - continues to thrive. More here.
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More in this Category - House prices
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Thanks to the Rat and Mouse reader who alerted me to the new flat-pack homes apparently available through Argos... although I can't find any sign of them in the online catalogue. According to this, in the Sun, they start at £11,000 (plus £4.95 delivery) and can be erected in a day or two.
[photo from the Sun]
Technorati Tags: design, property, real estate
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2007 was the year the ‘lifestyle farmers’ bought more land than actual raised-on-the-dirt farmers. If you read the Sunday supplements you know the type, migrating London fops inspired by Blur’s Alex James to add a little country rosiness to their families’ cheeks without going the whole ruddy, tractor-face mile. Then and bigger City investors with bonuses to burn who – apparently – tend to make their country purchases on the hush-hush. Lifestyle farmers grow vegetables and chop wood for their stoves, but allow local farmers to raise animals on their land while they stay out of the rain and knit chickens.
Our publisher, on the one property sector still booming, in his guest column for Citywire.
Technorati Tags: property, real estate, theRatandMouse
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The Independent gets a look inside an interesting Finchatton [warning, classical muzak] development in Eaton Square. It's a mixture of Victorian grandeur and very 21st Century glass-and-metal modernism... manifest in a giant rear extension and basement (housing cinema, swimming pool, and bedrooms for staff and security). What I don't understand is exactly how a Grade II-listed property (with historical importance... it was formerly the home of Lord Napier... although he couldn't have spent much time there) got the nod for such a radical extension. It's hard to imagine how the character of the building isn't altered by attaching what looks like a space ship to it. There are pictures here.
Technorati Tags: architecture, London, property, real estate
More in this Category - SW1
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I am immediately conscious of my pink bag and purple skirt, which shout vulgarity in the harmony of grey, black and white. Only a hint of red is allowed in each room, in a cushion or a rug.
The Sunday Telegraph carried this very entertaining tour of some minimalist masterpieces, including a Victorian mansion block flat (pictured) in Battersea... all original features concealed behind white fake walls and a wipe clean floor... and a south London semi which isn't pure minimalism (it has colour) but it works on the principle of hidden storage and is described as "monastic". Visiting the Battersea house, the writer leans how it was designed to cater for a utilitarian principle... carefully measured distances between (stored) appliances in the kitchen that reflect their use. It's Steve Jobs' Apple Mac workflow principle on a domestic scale. It's a theory I've always tried to sell to my wife, when extolling Bauhaus (my own frustrated enthusiasm). But - I don't know - it doesn't sound that convenient:
Even making a cup of tea isn't a simple matter: "I know I am a Minimalist freak," says Tanji. She opens a cupboard, gets out the kettle, fills it, plugs it in, makes the tea, then empties it, unplugs it and puts it back in the cupboard. For there must be no clutter.
Head over to the link above for the original piece, complete with pictures. Interestingly, all the properties mentioned are for sale. The Battersea flat is with John D Wood, here.
Technorati Tags: design, London, property, real estate
More in this Category - Design
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It's Highwood House in expensive Mill Hill, and it's significant because during the early 19th Century it was the home to Sir Stamford Raffles, the man who founded Singapore. That might not get you all excited, but it appears to be creating a fuss in Singapore, where there are calls for the building to be turned into a museum or bought and restored by a wealthy Singaporean. I can't find a listing, but the story goes that it's on the market for £3.5m.
If these walls could talk... HG Wells edition [May 2, 2008]
UPDATE - a hearty thanks to the Rat and Mouse reader who put me in touch with the particulars, here.
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More in this Category - For sale
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According to research by Debtwire, there were 13,000 estate agents offices in January and now there are only 12,000, with each office employing on average four agents. (If you think you've seen the missing 4,000 estate agents, please let us know.) By extrapolating from the figures, there's talk of 600 estate agents handing over their clip boards and keys every single week. More here.
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More in this Category - Estate agents
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It's 12 Fitzroy Road in Primrose Hill, the former home of author HG Wells, and thought to be the place where he at least started work on War of the Worlds (remember the references to the area?). It's with John D Wood, and a guide price of £3.25m buys you three reception rooms, four bedrooms and two bathrooms in one of the capital's most sought-after areas. Listing here.
[via the Times]
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More in this Category - Celebrity homes
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HIPs provider LMS has been keeping a close eye on what's happening between agreement and exchange. The answer, it seems, is quite a lot, and not much of it's very good. In London, it found a cancellation rate of 24%, and those who do get to exchange take an average of 68 days to do so.
[via FindaProperty.com]
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It's the one the spread-betters and other gamblers go by, and it's reporting a 1.3% fall in April, knocking 4.2% off the value of the average home since the beginning of the year. Significantly, it's the latest in a series of indices that put the annual inflation figure in the red. According to Halifax, it's a 0.9% fall April-to-April. Read the actual release (in pdf) here.
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More in this Category - House prices
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According to Katie Razzall, a rise in defaulting buy-to-let landlords is being followed by a rise in evicted tenants. It's obvious, really... although clearly not too obvious too get in the way of the schadenfreude outbursts from the usual suspects.
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More in this Category - Letting
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According to the Bank of England, lenders might be over-estimating sub-prime losses, and what they should be doing, instead of sitting on their hands, is lending. If they don't, they're contributing to a self-fulfilling prophecy, as house prices slide and debt loses its value. More here.
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It hasn't had the easiest of times, and now there are reports that Tesco Property Market might be on the verge of being sold... to established estate agency group Spicerhaart. It will - apparently - retain the Tesco name, however.
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