The government's Home Information Pack programme continues to attract significant and vocal backing from the government itself and anybody whose employment depends on their introduction. It also attracts significant and vocal criticism from those who will be adversely affected by their introduction.

One thing is certain - the scheme which was originally dreamed up to speed up and simplify the purchase and sale of residential property will probably slow it down and add considerably to its cost. It may well cause property prices to temporarily dip in the run up to June 1st (when HIPs are due for implementation), as a result of increased supply: people intending to sell their property in the next twelve months will get them on the market in advance of this date. Soon after, it is quite possible there will be a shortage of properties coming up for sale (because of the hassle of HIPs) which will reduce supply and thus drive prices up.

The saga continues, watch this space...

For those of you who have already invested in Turkey and also those who are currently thinking about it (we are too, so watch this space...) there was great news last month. The following extract is from a statement by the Turkish Embassy in London: -

The law amending the laws related to housing finance system, commonly known as "the mortgage law" came into effect after publication in Official Gazette today. Mortgages will soon become available in Turkey for the first time. The law ratified by the Turkish Parliament on February 21, 2007 and approved by President on March 5, 2007. The new law is expected to transform both the housing market and the Turkey's urban environment. The law will make mortgages available over long periods to house buyers in Turkey who until now have had to rely on family borrowings or expensive short-term home loans from banks. The law allows foreigners to secure mortgages, which will further boost property prices in Turkey. The law also allows for the securitisation of mortgages, which will help to increase the liquidity that banks can make available to borrowers. (06/03/2007)

According to a recent report from International Living, a comprehensive annual analysis, France again offers the greatest quality of life of any country in the world. It comments that "despite high taxes, bureaucracy, and a high cost of living, France is once again in pole position after taking over the top slot last year. And it's even relatively affordable in some regions too. Outside of Paris, the cost of living is significantly lower and habitable homes are selling for less than £50,000. France is claimed to have benefited from its best-in-the-world health care system, legendary cultural amenities and safety" IL reports.

I agree entirely, except that … France's taxes are now lower than those in the UK, so the point about taxes becomes a positive rather than a negative!

Update on REITs (Real Estate Investment Trusts) which were launched on January 1st this year. So far, although a few significant property companies have transferred to REIT status, there has been little activity as far as the investing public is concerned. In principle, if allowed to develop without undue tinkering, they could become an extremely important part of people's investment portfolios. So far, however, the only newsworthy comment has been that the government is talking about (presumably the action comes, like tax reductions, in a few years' time) the idea of financing prisons within a REIT. Adds a whole new meaning to the phrase "key money"!

www.viceroyinvest.com

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New Legislation - Tenancy Deposits
UK Buy to Let Taxation - Part 2
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