A blog about property and Northern Ireland from the team at PropertyPal.com
Two men who were arrested in Coleraine and Ballymoney on Tuesday by the organised crime branch have been released on bail. A third man was also arrested but later released on Tuesday.
The three were arrested by detectives investigating mortgage fraud, money laundering and tax evasion, thought to run into millions of pounds.
The enquiry includes £3m mortgage fraud relating to 25 properties as well as income tax evasion and capital gains tax evasion.
The government have announced that Northern Rock intend to do £14bn in new loans by 2011. The new loans will be financed by new deposits, repayments on existing loans and more government money.
The Chancellor, Alistair Darling said this is one of a series of measures being taken to rebuild the banking system. He confirmed “it’s repaid about £18bn of the loan the government made, and I said in January this year that because of the problems the mortgage market faced, instead of looking to wind down its business, it would be better for Northern Rock to maintain lending”.
Industry experts have welcomed the announcement and hope that Northern Rock will provide inspiration to other lenders. It is widely accepted that inter bank lending is necessary for economic recovery, so this news has been welcomed, however general consensus seems to be that the government should be taking more extreme measures and concerns have been expressed over a lack of consistency in their approach.
Northern Rock is to undergo further restructuring but fears exist that existing borrowers will be dealt with in a less generous manner than new business. Some are criticising the government for a complete u-turn on their policy regarding nationalised banks, however the government are convinced this latest step is necessary to stimulate the economy.
The Royal Institution of Chartered Surveyors have published a survey which indicates that property sales may increase over the next few months. The report suggests that lower house prices have prompted renewed interest in property. Although further signs of recovery are very welcome, the survey confirms that first time buyers still remain largely locked out of the market place.
RICS cautions that despite this recent rise in enquiries, the market is set to remain subdued. Simon Rubinsohn, RICS chief economist warns, “By no means could this relatively small pick-up in transactions be seen as representing a move back to a more orderly housing market.”
Its regular monthly housing market surveys show rises in buyer enquiries over the last three months. 71% of surveyors suggest that this renewed interest is down to lower house prices. Three quarters also confirmed that most enquiries where from existing home owners, first time buyers still showing little interest, probably due to the large deposits being sought by lenders.
Mr Rubinsohn cautions, ” a sharply deteriorating employment picture may eat away at this improvement in sentiment, pushing potential buyers back to the sidelines.”
Figures released last night by the Department of the Environment show that ratepayers living in parts of Northern Ireland will see their rates bills increase by at much as 8.5% in 2009/2010. Homeowners in the Fermanagh council area will see the biggest rise, up by 8.52% on last year.
Four councils have kept their rates increase below that of inflation, Craigavon, Down, Lisburn and Magherafelt, all see a rise of less than 3%.
North Down sees the second highest rise at 8.1%, closely followed by Carrickfergus at 7.9%. Belfast has set a 6.97% increase whilst ratepayers in Larne and Castlereagh will see no rise in their bills this year.
The district rates are set by February 15th of each year and cover the costs of local services, including refuse collection, economic and environmental services. Environment Minister Sammy Wilson said that the impact of these rises had been cushioned by an £8m package announced recently by the Minister of Finance Nigel Dodds. Mr Wilson said that the package meant “lower district rates than would otherwise have been possible.”
The Momentum Mortgage scheme, originally released in September 2008 has attracted another 18 local property developers. The scheme now boasts 28 developers with an additional 542 new build homes available in 21 developments.
The Scheme was developed to encourage first time buyers back into the property market by cutting out the need for a saved deposit. Purchasers are also protected against further price fluctuations of up to 15%. Mr Derek Wilson, Head of Products at the Ulster Bank said that there has been significant interest in the scheme since in started in September of last year.
Derek confirmed “We have committed £100m to lend to first time buyers through our Momentum mortgage and are confident that it will continue to support hundreds of first time buyers onto the property ladder who would be otherwise unable to buy their first home.”
Purchasers will automatically have their home independently revalued after five years. If the value falls by up to 10%, the mortgage is reduced by the same percentage. If however the value rises by more than 5%, a 5% deposit will become payable to the Ulster Bank. If the value does not rise by the 5%, the developer waives any right to a deposit.
The scheme has proved very popular and it is hoped that others will follow with similarly innovative products to encourage lending activity.
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