Belvoir Property Clinic - Looking for Rented Accommodation

Vicky Bowman, Lettings Manager at Belvoir Andover answers today’s property questions.

If you have a question for our monthly Belvoir Property Clinic, please send to info@belvoirandover.com

Q. My partner and I would like to rent our first home together but we are struggling to save the large deposit we need. Are there any options for paying a smaller deposit?

A. Yes, if you find a property through Belvoir you could qualify for Belvoir’s Nil Deposit Scheme. We know how tough it can be to raise that up-front deposit, so our Nil Deposit scheme offers an alternative option which will allow you to move quickly and easily into your chosen new home.

Rather than paying the usual six week’s rent as a deposit, you can now choose to pay a non-refundable fixed fee of just one week’s rent plus VAT.

At the end of the tenancy, the property will be inspected as usual and any claims for damage are invoiced to you for payment. It really is that simple!

There are some qualifying criteria, so pop into the office or give the Lettings Team a call on 01264 366611 to discuss.

Q. I have been looking for rented accommodation in Andover for some time now but even the smallest one bedroom flats are out of my reach. Have you any suggestions on how I can find something suitable?

A. It is difficult for those on limited budgets to find suitable homes to rent. Some of our smaller properties are let very quickly and you may not even get to see them advertised, so please do get in touch as we may be able to help you if we know what you are looking for.

Have you considered a house share? Belvoir always has a number of house or flat share opportunities and it can be the perfect solution for someone who can’t quite stretch to living on their own. Not only is the rent reduced but so are the bills.

Take a look at our website, www.belvoirandover.com to see what is currently available or drop into our office in Bridge Street so we can take your details and help you find the ideal home.

No Deposit? No Problem!

Belvoir is now offering a Nil Deposit Scheme for new tenants

Here at Belvoir, we know that it can be a struggle to raise a large deposit to put down on a rented home, so our new Nil Deposit Scheme offers an alternative option which will allow you to move quickly and easily into your chosen new home. 

Rather than paying the usual six week’s rental as a deposit, you can now choose to pay a non-refundable fixed fee of just one week’s rent plus VAT*

At the end of the tenancy, the property will be inspected in the usual way.

No need to save for months for that large deposit – yet another reason to Be with Belvoir!

How does it work? Pop in and see one of our Lettings team to find out if you qualify for Nil Deposit and to understand the full terms and conditions of the Scheme, or call them on 01264 366611

*Terms and Conditions apply

Introducing Vicky Bowman

We are delighted to announce that Vicky Bowman has joined Belvoir as Lettings Manager. Vicky will head up our very successful lettings team and she brings a wealth of experience to the role; having been a Lettings Manager in Andover for over 14 years.

Vicky said 'I am delighted to join such a busy and well-regarded lettings agent and I am looking forward to meeting and working with the many landlords that rely on Belvoir to manage their properties'

LOCATION, LOCATION, LOCATION…

LOCATION, LOCATION, LOCATION…

Three small words that can transform your property

investment decision, says Belvoir.  

As a new landlord or investor in the buy to let market, what would be your first priority – the type and purchase cost of the property, or the place in which it is situated?

There is no single, definitive answer to this commonly considered question, but in property circles the phrase ‘location, location, location’ is often referred to as the first three rules of property investment.

It’s the same for tenants too. Delia Thing who heads up the lettings team at the Belvoir Andover office on Bridge Street, says:  “When looking for the ideal place to invest in or to rent, it is worth remembering the adage ‘you can change the house, but you cannot change its location’.

“To find a property that will appeal to a tenant and provide a good level of rental income and/or capital growth it is extremely important to firstly define that appeal. There are many considerations to take into account and a good place to start is to look for towns, areas or streets that are currently in demand, and are likely to be increasingly popular in the future.

“Location is always a key driver, with proximity to work, schools, commuter routes, shops and public services amongst the many factors to be taken into account when choosing to market a property as a buy to let.

“In today’s market, there is an ever accelerating need for private rented property, with tenant demand often outstripping supply. To be absolutely sure as to whether a property would make a good rental investment it is worth consulting a lettings specialist such as Belvoir.

“Expert agents can identify local trends and spotlight properties that are the most popular for the type of tenant looking to rent and the best areas in which to find them.

They will know where property ‘hotspots’ are and which parts of a city or town are driving the market.”

Many buy to let investors choose to stay local in order to ‘keep an eye’ on their investment. It’s a strategy that works for thousands across the country, but there is no reason why a buy to let investment cannot work just as successfully hundreds of miles away - provided you make the right choice of professional lettings agent who can manage, maintain and keep a check on the property on your behalf.

“Within the Belvoir national network of over 160 offices there is a high proportion of landlords who own just one or two buy to let property investments, and many of these are in a different part of the country to where they are based.

“In cases like this an agent will have all the right up to date local knowledge and know properties and locations with the highest tenant demand. They will be able to advise on current, achievable rental levels and help avoid the pitfalls of investing in the wrong areas.”

Belvoir’s Andover’s advice for helping to decide the best location for a property investment include:

·        Only decide on where you want to invest after thorough research.

·      Do not make a decision based on the look of the property alone. Just because it appeals to you, it will not necessarily be a good rental investment.

·   Providing tenants with a quality, well maintained property for them to call home carries responsibilities. Only work with a local agent that you have checked out, trust and who has gained all the relevant professional industry accreditations.

·    Remember that big is not always best. A one or two bedroom unfurnished apartment can often yield a better return than larger, four bedroom furnished houses. It’s all down to location and the type of tenant you are targeting.

·        Overly high ‘yields’ – or returns on an investment - can sometimes indicate hidden issues and may not necessarily lead to a good investment.

·       Beware of “buying cheap and paying dear”.  If a property is located in a low quality area it can increasingly become run down – attracting the wrong type of tenant and achieving poor long term capital growth.

“Whilst there are many other things to consider when entering the buy to let market, ‘location, location, location’ must always be uppermost in the mind of a landlord investor,” adds Dee.

“Sometimes the difference between a good rental property and a not so good one can be down to which side of the street it is on, let alone its geographical location.

“If you want to avoid costly mistakes early on in the process, invest in good local, experienced advice. Initial consultations with our office are both free and carry no obligation to proceed.

“At Belvoir we can help to source suitable properties and steer people away from opportunities that, at first, may appear good on paper but may not prove to be the best decision over the longer term.”

If you are looking to invest in the buy to let market, please contact us to arrange an informal chat about your options, what is available and what to look for. Please call Delia Thing on 01264 366611

Belvoir Andover are the towns leading buy to let & investment specialist who have been the industry leader since 1997.

Energy Performance Certificates - Updated Law

EPC Certificates (England & Wales)

It has become apparent that a change in law is forthcoming with regards to Energy Performance Certificates (EPC’s), we have outlined the following advice and action that Landlords will need to know in order to ensure their properties are compliant by the relevant dates.

EPC ratings indicate how energy efficient a property is, giving it a rating from A (very efficient) to G (inefficient). They also demonstrate the environmental impact of a property in terms of carbon emissions and how costly it will be to heat and light, both in monetary and CO terms.

From April 2018, it will be unlawful under the Energy Act 2011, to let a residential property on a New Tenancy Agreement with an EPC rating of F or G – the lowest two categories. This will include a tenancy renewal as this will constitute a new fixed term Tenancy Agreement. Obviously if it continues as periodic with no new Tenancy Agreement the landlord will not need to look at this during that period. This will not apply to any existing lettings until 2023 if there is no change of tenancy.

From April 2016, tenants living in F and G rated homes will be able to request that their landlord takes measures to improve the energy efficiency, with the landlord duty bound to respond within a month with a view to bringing the property up to the minimum E rating.

If Landlords wish to upgrade their properties, the first step is to instruct an approved EPC assessor to survey the property and establish the current rating. If the rating is less than an E, the assessor will be able to give advice on how to improve it. This could be as simple as installing energy saving light bulbs, draught proofing or making more comprehensive improvements, such as replacing an ageing boiler, putting in secondary glazing or upgrading heating controls, and installing systems which are likely to have an impact on improving overall energy efficiency. If the Landlords take action now it will mean they have time on their side to schedule the works and budget costs accordingly, with the ability to spread the outlay over the forthcoming years.

It is worth noting that if the property is 'Listed', then an EPC is not required.

If you would like to check if you have an EPC on your property or want to check the rating, you can do this online by entering the postcode here: ONLINE EPC REGISTER

If you do not yet have a certificate for your property and would like to arrange to have one, please contact ann.osman@belvoirandover.com who will be able to arrange a certificate if needed or discuss the short falls with you. If the property is a 'F' or 'G' then we can formulate an action plan for your property.

If you have a property that is not fully managed by us but need advise on this, please email Ann in the first instance.

Please could you email us in all cases in the first instance to avoid a flood of calls into the office, Please bear with us whilst we answer all enquiries.

New Property Tax Law That Affects Non UK Residents

If you buy UK residential property but are a tax-resident outside of the UK, you need to be aware of a new tax that came into effect on 6 April 2015: non-resident CGT (NRCGT).

The NRCGT charge is applied at different rates according to whether the seller is a non-resident closely-held company, fund, individual, personal representative or trustee. It applies to gains made in the period from 6 April 2015 to the disposal date of the property, so a small amount of tax is likely to be payable on property sales made in 2015/16.

However, when such a sale is made a NRCGT return must be submitted to HMRC within 30 days of the conveyance of the property, and this must be done online. The return must be made whether there is any NRCGT to pay or not, where there is a loss on the disposal, and even where the taxpayer is due to report the disposal on their own personal or corporate self-assessment tax return.

Where the vendor is not registered for UK income tax, corporation tax or the annual tax on enveloped dwellings (ATED), the NRCGT charge must be paid within 30 days of the conveyance date. This payment can only be made once the NRCGT return has been submitted and HMRC have replied with a reference number to use when making the payment. There are penalties for failing to file the NRCGT return on time, and failing to pay the tax on time.

If the taxpayer is registered for UK Self-Assessment they can opt to pay the NRCGT due at the same time as the tax due for their normal personal or corporate tax.

Conveyancing solicitors need to be aware of the very tight tax reporting and payment deadlines. Property developers need to warn non-resident customers that they will be liable to tax on any gain made when they sell the residential property and that gain includes any discount in the price achieved by buying "off-plan".

CHOOSE AN AGENT – OR GO IT ALONE?

It’s an important first decision for all new buy to let landlords    

Public interest in buy to let property investment has never been higher.

Tumbling mortgage rates, a shortage of housing stock, increased tenant demand, all boosted by the recent liberation of some people’s pensions savings, are continuing to tempt more and more investors into the sector as a way of protecting their financial future.

According to the Council of Mortgage Lenders, private residential buy to let mortgage funding has increased by 11 per cent year on year with nearly 16,000 loans, representing £2.2 billion, issued at the start of 2015.

However, Belvoir, one of the UK’s largest property letting and management specialists, says that new landlords should take a long look before they leap into this booming market – and fully consider the pro’s and cons of either ‘going it alone’, or employing an agent to advise on what can be a daunting process for novice investors.

Phil Pinkney, Director of Belvoir Andover which is part of a national network of over 160 offices, says: “Deciding to manage a property yourself or paying for an agent to do it on your behalf is a big decision.

“Even after taking all the essential first steps, such as researching the local market, identifying the right kind of property, checking its condition, its likely appeal to a particular tenant group and its potential yield or ‘return’ on investment, there is still a lot to consider.

“Landlords need to carefully assess their available time, skills and abilities, so as to ensure the safeguarding of a property and the people who will live in it, and importantly, make the whole process as stress free as possible.”

“Renting out a property for the first time can feel daunting because of the amount of legislation, health and safety considerations and overall commitment to the on-going maintenance and security of your investment.

“Professional agents, recognised and accredited by the UK’s industry bodies, not only have in place a wide range of client protection mechanisms, but a thorough understanding of your local market, technical knowledge of the sector and up to date information on trends and statistics to help you make informed decisions”.

“Fees charged reflect the depth of knowledge, expertise and up to date training required to keep on top of a constantly changing property landscape. When considering the cost of employing an agent you should always be aware of the cost of NOT employing one should things start to go wrong.”

Belvoir says there are three principal points to consider:

• Being a ‘do-it -yourself’ landlord means having the time and patience needed to care for your property and its tenants. Would you be able to deal with any issue at a moment’s notice, to the satisfaction of all concerned?

• Do you have the manual and organisational skills to maintain the property to the required standard, or would you need to employ someone to do this for you?

• Are you confident about handling all the legalities?  Changes to Landlord and Tenant law are frequent and often complicated. Again, this demands time, research, a thorough understanding and great attention to detail.

• All well-established, reputable agents will offer a range of services to suit the particular circumstances of a landlord client. Landlords may require all of them or just specific ones, following a detailed assessment of the need.

• They can help find, and then screen and reference, suitable tenants. This is an important first step and is often overlooked by ‘DIY’ landlords.

• A thorough knowledge of local property prices, achievable rent levels and investment ‘yields’ will help new landlords to set a realistic, fair and competitive rent for their property.

• An agent’s full inventory check at the start of a tenancy provides a valuable record of the property’s internal ‘assets’ – appliances, furnishings etc. – that can be checked against when the tenant leaves.

• In addition to the legal ‘basics’ of understanding tenancy agreements and deposit legislation, professional agents such as Belvoir are required to have comprehensive, up to date knowledge of rules on gas and electrical safety, energy performance ratings, fire regulations, legal furnishing standards and landlord/tenant insurance matters – to name just a few.

• If property maintenance forms part of your management agreement, an agent will provide round the clock protection in the event of a burst pipe, broken appliance, weather damage or any other problem. They will provide a professional assessment of the cause and or liability for repair and fix the problem on your behalf.

• All landlords have a legal obligation under the Landlord and Tenant Act 1985 to ensure that their property is safe and that repairs are carried out to the correct standard, so quality of workmanship is essential. A professional agent will ensure compliance with these regulations.

• If problems arise during a tenancy – for example slow or non payment of rent – the agent will pursue this on a landlord’s behalf and take any appropriate steps to manage the issue.

                 Established for 20 years and multi-times winner of the UK property industry’s top awards, Belvoir offers the following advice on the advantages of using a letting agent to guide you through the lettings process:  

“When a considerable amount of your own money is put into a buy to let investment, it is critical to understand the advantages, the restrictions and indeed some of the pitfalls involved”.

“It is inevitable that many new landlords’ circumstances and expectations can vary, so we provide an initial free, no obligation meeting to fully explain how we can make the  management of your property work, not just for you, but for anyone who chooses to call it their home.”

“Above all, a successful landlord/agency relationship is built on trust, transparency and recognised high standards of professionalism and respect for landlord and tenant clients alike.”

Belvoir is a founder member of the ‘SAFE AGENT’ Kite mark scheme, supported by the independent National Approved Letting Scheme (NALS). This promotes client money protection and provides consumers with a clear message on those agents with whom they should do business.

The company also follows The Property Ombudsman Code of Practice for Letting Agents. Belvoir Andover, established in 1997

If you are interested in entering the residential buy to let market, why not give Phil a call on 01264 366611 or email phil.pinkney@belvoirandover.com.

Brand New Belvoir Andover Smart Phone App

We are delighted to announce the release of our very own smart phone App.

Suitable for Apple iPhone & iPad as well as all Android devices, this is the essential tool for anyone looking for residential or commercial property in or around Andover.

If you want to be the first to hear of our new instructions, download the app and you will receive notifications before ANYONE ELSE !!

You will also find useful tools in the app like:

• Making voice notes when doing viewings
• Read national property news stories
• Request a valuation
• Upload documents to us like ID & references
• Request a viewing
• A QR scanner
• Links through to our social media sites
• Learn about Belvoir and the owners that run the business
• Get exclusive notifications of promotions and exciting competitions
• And much more..............

To download our app for FREE, please click on the picture opposite.

Commercial, Retail & Industrial Property Update

As we prepare for 2015 completions on let and sold commercial property, we are now reflecting on what has been a very active year for commercial property. With over double the number of successful lets and sales than in 2013, clearly confidence is returning to small and medium size businesses in and around the Andover area.

Greg Greatbatch, who's our Commercial Property Specialist and co owns the Belvoir office on Bridge Street in Andover says “We have been inundated with applicants looking to buy or rent commercial property in the Andover area, even on the run up to Christmas. Now with significantly more applicants than property, we are keen to talk to owners and landlords who require effective marketing of their property and an efficient let or sale. 


The empty retail units that used to line our town centre are slowly but surely being filled and we are seeing some big name businesses coming to the town including Subway, Frangos and even Pizza Hut rumored to be opening in 2015”

He adds: “We have seen a particular boost in small businesses coming to market, taking shops and offices up to the £1500 pcm mark. We have also seen a large influx of investors buying office space above retail shops and converting this to residential. With the recently relaxed permitted building rights, developers are snapping up opportunities to develop empty office space."

Commercial Property Finance now easier than ever with dedicated commercial finance assistance from Andover lenders is making buying a very real option for businesses with longer term strategies. Contact us if you would like a quote.

As January is typically very active for business moves, it would be worth making contact with us ASAP so we can get your property on the market and ready.

BELVOIR have been property specialists here in Andover since 1997 and requires more commercial property for waiting applicants.

Please contact Greg Greatbatch 01264 366611 or commercial@belvoirandover.com

Shake up of Stamp Duty Land Tax rates announced today

You have to pay Stamp Duty Land Tax (SDLT) if you buy a property in the UK over a certain price. This is charged on all purchases of houses, flats and other land and buildings.
Different rates apply in Scotland from 1 April 2015 when Land and Buildings Transaction Tax (LBTT) replaces SDLT.

The SDLT rate depends on:

• the purchase price of the property
• whether the property is residential

SDLT rates from 4 December 2014
SDLT is charged at different rates depending on the portion of the purchase price that falls into each rate band.
Before 4 December 2014, SDLT was charged as a single percentage of the property price.
Where contracts have been exchanged on or before 3 December 2014, and the transaction is completed on 4 December or later, you can choose whether you follow the new or the old rules.

Residential properties - Purchase price of property
Rate of SDLT (percentage of portion of purchase price)

£0 - £125,000 0%
£125,001 - £250,000 2%
£250,001 - £925,000 5%
£925,001 - £1.5 million 10%
Over £1.5 million 12%

Compare this to the old rates that were:

£0 - £125,000 0%
£125,001 - £250,000 1%
£250,001 - £500,000 3%
£500,001 - £1 million 4%
£1 million - £2 million 5%
Over £2 million 7%
Remembering that now the percentage only applies to the amount of the purchase between each category

i.e. If you were purchasing a property at say £300,000 from tomorrow, you would pay as follows:
The first £125,000 would attract 0% = £Zero
The portion between 125001 and 250,000 would attract 2% = £2500
The balance of £50,000 would attract 5% = £2500
Total Stamp Duty to pay £5000
In the old regime you would pay 3% on the whole amount which equates to £9000, so today's news means you save £4000.

However, if you are buying a house worth say £250,000 the stamp duty to pay would be as follows:
The first £125,000 would attract 0% = £Zero
The second 125,000 would attract 2% = £2500
This vs £2500 which is what you would have paid before today's news so no change in this example.
Need to calculate your Stamp Duty ? Use the HM Revenues & Customs calculator here.


Need to understand the value of your property ? Give the sales team here a call to arrange a free (and no obligation) property appraisal 01264 366611 or email the sales team sales@belvoirandover.com


Spot an error ? email us greg.greatbatch@belvoirandover.com

Would you like to join Andover’s leading Estate Agent ?

Exciting new career opportunity for you

Due to our continued success, we're now recruiting further lettings staff for our busy Andover Town Centre office.

 

The successful candidate will be friendly, helpful, confident and self motivated. They should be smartly dressed, comfortable showing people property, negotiating with applicants, doing viewings and completing paperwork.

In return you will receive a competitive salary, bonuses, use of a company car during the day and of course the kudos of working with the best in the industry.

Belvoir is part of a national network of over 160 independently owned property businesses throughout the UK.

Belvoir Andover, the lettings specialist was founded in 1997 and has twice before changed hands before finally being purchased by two property professionals in 2005. Belvoir Andover is now the leading agent in the town and in the top 5 for Belvoir in the country.

In 2013 having acquired local estate agents ‘Redwoods’, and having partnered with a local estate agency professional, we're now able to offer both Residential & Commercial sales & lettings.

We're a forward thinking company investing heavily in staff and technology to provide industry leading and award winning customer service.

If you'd enjoy working in a dynamic and rewarding environment, please don't hesitate in sending us your C.V. to phil.pinkney@belvoirandover.com or pop one down to our Bridge Street office.

NEW EU RULES COULD AFFECT ‘ACCIDENTAL LANDLORDS’

Criteria tightens on buy to let mortgage lending…

National residential property lettings specialist, Belvoir is urging thousands of British property owners classed as ‘accidental landlords’ to seek specialist buy to let advice from industry experts following a new European ruling on mortgage regulations.

Accidental landlords are typically people who, after a change in their circumstances, struggle to sell their home, so end up renting it out.  Divorce, separation, bereavement or job relocation are some of the reasons why owner occupiers hang on to a property to turn it into a ‘buy to let’ investment. 

Phil Pinkney, who co owns the Belvoir office on Bridge Street in Andover, says: “Currently, in cases such as these, banks will usually allow homeowners to switch a mainstream mortgage over to a landlord loan or alternatively ask them to pay charges to be allowed to retain a residential mortgage and then rent the property.”

“However, the UK Treasury has announced that new EU legislation, the ‘European Mortgage Credit Directive’ which comes into force in March 2016, will introduce partial regulation of Britain’s buy to let market  - which could, potentially, make it more difficult for homeowners to make this simple switch.

 “Unlike mainstream owner occupier mortgages, buy to let lending for professional investment landlords is usually viewed as ‘business’, not ‘consumer’, borrowing.

“But under this new Directive, the Treasury says that landlords who are letting a property  “as a result of circumstances rather than through their own active business decisions” will now be classed as consumer not business borrowers, and will need to be covered by a tighter, regulated framework.”

He goes on to say “As with the introduction of  any new legislation, it is important for landlords to get professional and realistic rental assessments from experts who understand the buy to let market as this will help to ensure that rental returns add up and landlords are able to meet the new lending criteria.

“Whilst the changes will not affect mortgages taken out by regular investment landlords, they could impact on both existing and prospective ‘accidental landlords’ so we would recommend seeking out professional advice in advance of the new rules in 2016 .” 

Commenting on the EU announcement, The Council of Mortgage Lenders has said that many lenders could struggle to distinguish between ‘consumer’ landlords and buy to let professionals.

Last year over 151,000 buy to let mortgages were taken out – representing 12 per cent of total UK lending. Industry experts predict a continuing buoyant market in buy to let, with a projected rise of up to 3 per cent in mortgage activity.

 “If you are already an ‘accidental landlord’ in our area, or could be about to inherit a property that you intend to rent out, it would be beneficial for you to contact us for a free, initial consultation to discuss your aims and objectives, so that we can help you take a long term view of your property investment needs,” adds Phil.

“As one of the UK’s largest and well established property lettings specialists we are able to offer a wide range of advice and services on a regional as well as national level and, importantly, use our local knowledge to help guide you through the opportunities available in our area.”

For more information on letting a property, contact Andover's leading letting agent BELVOIR!

Tel. 01264 366611
Email andover@belvoirandover.com 
Google+ +Belvoir Andover Estate & Lettings Agent . 
www.BelvoirAndover.com

Rent & Legal Protection Insurance

Many of you take advantage of this fantastic product already, if you do not know the features and benefits, please read on 

The Belvoir residential property owners’ legal expenses and tenant default insurances has been tailor-made for Belvoir, giving our landlords peace of mind.

Full details can be provided on request, but can provide cover in respect of:

• Non payment of rent
• Legal costs associated with evicting a tenant
• Property Protection 
• Repossession cover
• Contract disputes
• Legal defence
• Debt recovery
• Tax protection
• Employment disputes and compensation awards
• Bodily injury
• Covers the property not the tenancy

All this for just £139.50 per year. Really in our opinion, a no brainer. We have these policies on our own portfolio.

To see a copy of our Rent and Legal policy booklet please click here

If you would like more information on specialist landlords Buildings and Contents insurance, please click here to learn more

CBI on 'high alert' over house prices

The Guardian Reports:  Britain's leading business lobby group has warned that policymakers must be ready to act on unsustainable house price rises in the UK.

The CBI said it was on high alert after annual house price inflation reached more than 10% in some areas. It now expects interest rates to rise in the first three months of 2015, six months earlier than it previously predicted and, crucially, before the general election.

John Cridland, the group's director-general, said: "We have to remain alert to the risks posed by unsustainable house price inflation, and the [Bank of England's] financial policy committee is poised to act when necessary.

"Housing has come back under the spotlight as annual house price inflation figures have reached double digits on some measures. While housing transactions are still running almost 30% below their last peak in 2006, they are picking up steadily."

The business lobby group is expecting house prices to rise by 8.2% this year, and by 5.1% in 2015. Prices rose 3.6% in 2013.

It raised its forecasts for economic growth this year and next, and said the recovery was becoming better balanced with a sharp rise in business investment expected. It expects the economy to grow by 3% this year, stronger than an earlier forecast of 2.6%. Next year growth is expected to be 2.7%, compared with an earlier forecast of 2.5%.

The CBI warned that "loose talk" and anti-business rhetoric in the runup to next May's general election risked damaging investment and derailing the recovery.

"The UK now has more stable economic foundations, and political risks must not jeopardise this. Politicians must be wary of the risk of headline-grabbing policies that weaken investment, opportunity and jobs," Cridland said.

"We've got a combination of political risks that we've not had for some while. They range from UK general election to Scottish referendum on independence to the prospect of a referendum on European Union, so that's quite a cocktail of issues."

He said the message to all parties was to stick with what's working, including a commitment to cut the deficit.

The CBI brought forward its expectation for the first rise in interest rates to the first quarter of 2015, when it expects the first 0.25 percentage point rise in rates. It had previously forecast the first rise in rates would come in the third quarter of next year. Rates have been on hold at a record low of 0.5% since March 2009.

Cridland said the government's controversial Help to Buy scheme – blamed by some for creating a new housing bubble – was not responsible for unsustainable rises in house prices, arguing it was a relatively small part of the overall market.

"Help to Buy is primarily helping people outside London, on relatively modest mortgages, and appears very much still to be helping first time buyers. Those were the CBI's core objectives."

He said it was important to remember that although London prices were 25% above the 2008 peak, in part fuelled by rich cash buyers, prices in the rest of the UK were still 2% lower.

The CBI chief said bold action was needed from government to address the chronic shortage of houses in the UK, so that supply had a chance of keeping up with demand. The CBI wants to see councils releasing more land, and the possibility of new garden cities to be explored by policymakers.

Meanwhile, Katja Hall, the CBI's chief policy director, said the warning on anti-business policies was meant for all parties but admitted Labour's pledge to freeze energy prices and the hard line on banks were concerns.

"Some of the loose language we've heard is from politicians from all parties. Of course there is concern about the proposed energy freeze and some of the proposals on banking.

"Political positioning must not be allowed to stifle investment, whether it's an unrealistic immigration target, unjustified interventions into specific markets, flirting with leaving the European Union, delaying vital long-term infrastructure projects or restricting labour market flexibility."

The CBI wants a commitment before the election from all parties to the recommendations made on increasing the UK's airport capacity in the Davies commission.

The group predicts that unemployment will fall further to 6.8% this year and 6.4% next year, from 7.5% in 2013. Hall said the UK labour market was "looking really healthy". She said last summer marked a turning point, with a big increase in full-time permanent employment, after a period when self-employment, part-time work, and temporary work were factors driving a rise in employment. She also made the case for zero-hours contracts, where employees are not guaranteed a minimum number of hours.

"They are not bad contracts, they are an important part of a flexible labour market and they have helped to protect jobs during the recession, and create jobs as the economy started to recover," she said.

For more information on selling your property, home, house, flat or commercial property in Andover, Whitchurch, Ludgershall, Tidworth or the surrounding area, please contact us for a no obligation up to date valuation 01264 366611

Bank of England holds UK interest rates at 0.5%

UK interest rates have been held at the record low of 0.5% for another month by the Bank of England reports the BBC.

The Bank also kept the size of its bond-buying economic stimulus programme unchanged at £375bn.

The news is in line with analysts' expectations, despite recent evidence that the UK economic recovery is strengthening.

Worries about rising house prices in parts of the UK have intensified the debate over when rates might increase.

Continue reading the main storyThe Bank's Monetary Policy Committee (MPC) have kept rates at the historic low of 0.5% for more than five years, amid worries that the finances of many individuals and

businesses remain too weak to withstand a rise.

But the pace of economic recovery is picking up, and last week the Organisation for Economic Co-operation and Development (OECD) raised its UK growth forecast for this year from 2.4% to 3.2%.

The OECD did, however, sound a warning that the housing market could be overheating. It said that the UK government should consider restricting access to the Help to Buy scheme, which provides mortgage guarantees and loans to people struggling to find deposits on homes.

The British Chambers of Commerce said on Thursday that a rate rise soon would be "premature".

BCC chief economist David Kern said: "The decision to maintain interest rates and quantitative easing was unsurprising and appropriate.

"Businesses need clarity that encourages them to increase investment, and at the moment the MPC is delivering this. However its efforts are hampered by repeated calls for interest rate rises whenever a piece of positive news is published.

"Such a move would be premature. The MPC should instead strengthen the clarity of its forward guidance message."

'Blunt instrument'

Many economists have pencilled in a rate rise early next year. The Bank hinted in February that the second quarter of next year was a possible timeframe.

However, Scotiabank economist Alan Clarke said that if wages continue to pick up, then a rise could come before Christmas.

Martin Beck, senior economic adviser to the Ernst & Young ITEM Club, said: "The pound's continued climb and subdued inflation expectations, also, point to benign prospects for inflation in the near-term.

"The Bank is likely to use its macro-prudential tools, possibly as soon as June's meeting of the Financial Policy Committee, before deploying the blunt instrument of an interest rate rise.

"Next week's Inflation Report should provide more enlightenment, pointing, in our expectation, to rates remaining very low for some time yet."