The 10 ways estate agents rip off their customers

A disillusioned former estate agent has blown the whistle on underhand tricks of the trade. Pav Sheen says he was so outraged by what went on behind the scenes that he wants to warn others before they buy or sell their properties. During his time as an estate agent in London Mr Sheen says he saw several dubious tactics, including colleagues undervaluing properties to sell them to each other at a lower price.

London Rightmove House Prices Fall Most Since 2004

London house prices fell the most since 2004 this month after five interest rate increases in a year and turmoil in financial markets sapped buyers' confidence, according to a Rightmove Plc report. The average asking price for a home in the U.K. capital declined 2.5 percent from August to 384,439 pounds ($774,000), according to Britain's biggest real-estate Web site. The reading is taken from a survey conducted from Aug. 12 to Sept. 8. For the U.K. as a whole, prices fell 2.6 percent, Rightmove said. Growth in London property values is faltering after the collapse of the U.S. subprime mortgage market triggered losses in securities linked to the loans and spurred banks to raise lending rates. The turmoil is piling pressure on consumers, already finding it costlier to pay loans after the Bank of England raised its key rate to a six-year high in July.

UK's MWB postpones hotels sale, blames market

MWB appointed Bank of America to sell the property assets of both hotel groups in July after it was forced to scrap a $3.6 billion initial public offering of Vector Hospitality, a separate vehicle it created with partners in a bid to float the UK's first dedicated hotel real estate investment trust (REIT). The failure to float Vector in June was also attributed to poor market sentiment following a rapid downturn in confidence in the outlook for European property stocks.

UK real estate market faces 10 bln stg loss of value

LONDON (Thomson Financial) - Property agent CB Richard Ellis is to wipe up to 10 bln stg off the value of the UK's commercial property market when it carries out its quarterly valuations at the end of this month, the Sunday Telegraph reported. The world's biggest property agent, which values nearly half the investment-grade commercial real estate in the UK, has told select clients it is to mark down their property by up to 10 pct as a result of a downturn in the market, the report said.

UK First time buyers turn to Overseas Property

Beth Collingz, PLC International Marketing Director for Pacific Concord Properties Inc's Lancaster Brand of Apart-Hotels or Condotels in the Philippines said a recent study published by UK National Savings & Investments found 84 per cent of 18 to 30-year-olds believe buying property abroad is a more viable option than
buying in Britain. Young people buying abroad and renting in Britain are and will continue to be a growing phenomenon. They generally look at spending less than £200,000. This comes on the back of recent reports by Barclays Bank that revealed the number of Britons keen to buy property abroad has doubled to 18,000 in a year.

Land Securities Rattles U.K. REITs

LONDON - After a volatile session, shares of Britain's biggest real estate investment trust, Land Securities, closed unchanged Wednesday as investors struggled to make sense of the rumors that the company plans to split in two in the face of difficulties in the commercial property sector. Other British property stocks were not so lucky.

London is fast becoming a second home to rich Indians

It is no longer a metaphor but literally true - more and more Indians are buying homes in the British capital. Last year 60 per cent of the £5 million-plus properties sold in Central London were bought by foreigners. While many of these were Russians and Americans, Indians were giving them a run for their money too. "My phone is ringing off the hook with Indians eager to buy property in London," said Jaideep Singh, head of the India desk at Knight Frank, real estate agents that specialise in properties in Central London.

Watson Wyatt boosts real estate

Investment consultant Watson Wyatt has made two hires to boost its research into real estate investment managers and hedge fund managers, and added five new graduates to its manager research team. Douglas Crawshaw, who has more than 10 years' investment experience, most recently as a portfolio manager at Morley Fund Management, will join a real estate team of six in the UK, headed by Steven Grahame, which focuses on researching real estate investment managers. Crawshaw is a senior investment consultant and is based in London.