Conservative areas have the most expensive residential properties

David Cameron proposes scrapping of new shared housing law

More landlords want to purchase investment properties

Mortgage applications increase by +20%

The BRC calls on landlords to deliver on their promises over quarterly rent removal

House owners in Conservative-controlled areas have the most expensive properties, however the biggest property price rise has occurred in Gordon Brown’s constituency Kirkcaldy and Cowdenbeath with growth of +213% since Labour came to power in May 1997, according to Zoopla.

House prices in Conservative constituencies are worth an average of £257,518, followed by Lib Dem constituencies where the average home is worth £228,880, whilst Labour is significantly lower with average properties at £168,112, meaning that property values in areas under their control is almost -20% below the national average.

Nicholas Leeming of Zoopla, said: "The election outcome may be unclear for now, but it is clear that the Tories rule in the property stakes with average values in their constituencies significantly above those in Labour-controlled areas.

"Interestingly, despite the fact that there are far fewer homes in areas under their control today, the Tories still have an equal share of the UK's property wealth, due largely to their strong presence in wealthy rural areas and the south-east of England in particular."

Properties prices in Conservative areas have risen by +7.82% since the last election in May 2005 and by +179% since Labour came to power in May 1997. This compares to Labour constituencies where they have gone up +7.99% and +177% respectively, however the Liberal Democrat areas have seen a rise of +10.24% in the last five years and +190% since May 1997.

In terms of the total current value of residential property located in areas controlled by each party, the Conservatives and Labour come out almost equal with £1.9trillion each, although Labour has significantly more homes (11.7m) in areas under its control compared to only 7.2m homes in Conservative areas. The total value of homes in areas under Liberal Democrat control stands at £0.5trillion with 2.2m homes.

David Cameron proposes scrapping of new shared housing law

John Denham, the Secretary of State for Communities and Local Government, has accused David Cameron of siding with the National Landlords Association (NLA) after he proposed a parliamentary motion calling for new shared housing planning permission requirements to be scrapped.

Denham said: “This is an incredible and devious misuse of the Parliamentary process, apparently at the behest of the NLA. David Cameron has personally signalled that he is against a measure that will be of immense benefit to the city. He is showing his true colours at last - doing favours for the NLA rather than listening to residents’ concerns.”

The new law requires that planning permission is obtained for new shared housing where three or more unrelated people live together. The plans will limit shared housing in many areas and will affect not only students, but migrant workers and those who rely of shared housing as an affordable housing option.

The new plans however are not retrospective so will not prevent existing properties from having to abide by the law, so not solving the problems associated with existing shared housing.

David Salusbury, chairman of the NLA, said: "This smacks of electioneering. John Denham has been vociferous in his campaign against shared housing. This law was rushed through Parliament without a chance for debate, excluding MPs from having a say on this ill thought out policy. It would have been more honest for John Denham to make the case for this change in Parliament, rather than avoiding debate.

"Government needs to rethink these plans, work with MPs and stakeholders from all sides and come up with better proposals. We want to see more shared housing for people who need it and local authorities directly tackling the problems associated with houses in multiple occupation."

More landlords want to purchase investment properties

The number of landlords looking to purchase residential property for investment purposes in the second quarter of 2010 has increased to 12% according to Paragon Mortgages.

The number has increased by +2% from Q1 with terraced housing being the preferred option as 67% are intending to purchase this type of property, followed by 25% looking for semi-detached housing.

Nigel Terrington, Paragon Group’s chief executive, said: “Demand for property investment has remained strong during the recession and has improved since house prices stabilised. Landlords know that the long-term forecast for tenant demand is extremely healthy, with socio-economic and demographic changes leading to growth in the number of households calling the private rented sector home.

“Government figures show that the private rented sector is the only housing tenure that is currently growing. The proportion of households in both owner-occupation and social housing was in decline for the best part of the previous decade, and the private rented sector has picked up the slack. One in seven households now lives in privately rented accommodation.”

Tenant demand increased as 24% of landlords saw an increase compared to 8% who said it was declining, whilst 36% forecasted that they expect demand for their property to be higher in 12 months time.

The average value of a landlord’s portfolio increased for the second successive quarter as it rose by +6.1% during the period to £1.52m with it expected to rise by a further +1.2% in the next 12 months.

Mortgage applications increase by +20%

Applications for mortgages in March 2010 increased by +20% compared to the previous month, as they reached levels equal to those last seen in February 2008, according to the Countrywide Group.

March saw the third consecutive month of rises in applications as Q1 2010 was up +9% on Q1 2009, with the increase attributed to a renewed sense of confidence among customers and more product choice.

Grenville Turner, Countrywide’s Group chief executive, said: “Widespread uncertainty surrounding the economy and election does not appear to have deterred mortgage customers, which might partly be due to the number people who have sat tight during the recession and are now ready to move regardless.

“While the longer term outlook is unknown, the forthcoming election is not deterring buyers at present and mortgage applications always provide a good indication of consumer confidence.”

Overall, 89% of mortgage applications made in March 2010 were for two and three-year products and whilst it was a decrease of -1% from February 2010, it was a +24% improvement on March 2009. Buy-to-let mortgages saw 44% of applications in March 2010 for tracker products, which was an increase of +3% on February 2010 and a +35% increase on March 2009.

The BRC calls on landlords to deliver on their promises over quarterly rent removal

The British Retail Consortium (BRC) is requesting that commercial landlords deliver on their promises and allow more tenants to switch from quarterly to monthly rental payments.

The BRC has responded to The British Property Federation’s (BPF) announcement that the UK’s biggest industrial, office and retail landlords will go the extra mile to support firms through the downturn.

Stephen Robertson, the BRC’s director general, said: “We welcome this public commitment by landlords to be more flexible, but they need to back up their words with action.

“Our objection to quarterly payments has always been a point of principle – not just about helping businesses through tough times. Monthly rents are now more common on new leases, but our figures show many landlords have yet to deliver the flexibility they promise – especially on existing leases.

“Demanding to be paid quarterly in advance has no place in the modern world of online banking. Landlords should offer tenants monthly rental terms, where retailers ask for it.”

Currently only 12% of retail property leases are on monthly rental terms and, although 90% of occupiers stated that they have been allowed to move to monthly terms, they will or already have been penalised by higher charges, with approximately 40% being allowed to move onto a monthly rental scheme but only for a short period, typically 12 months.

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