• From Cambridge to Cardiff the sabers are rattling in anticipation of an increase in council tax for 2012/2013.
• Eric Pickles has been banging a big drum to get councils to continue the freeze on the rate of council tax at last years level.
• Council tax bills at 150 local councils may remain frozen as they have indicated they intend to comply with Erics request for restraint.
• Council tax bills more than doubled since 1997 but there were large payroll costs to fund.
• Is Pickles a big bully or just one of those adjectives? The answer may depend on your political persuasion.

For more information on UK Council Tax read;

What is UK Council Tax

Saving Money on Council Tax

Ways to Save Money on Council Tax

• Live in an area where council tax rates are low, council services are run on the basis of good value or where the government subsidy is high.
• ‘If you’re on a low income, whether you’re working or not, and need financial help to pay your Council Tax bill, you may be able to get Council Tax Benefit. Find out more, including who is eligible and information about the Second Adult Rebate’ from Directgov
• Most students do not need to pay council tax
• If you live alone you are entitled to get a 25% discount.
• If the house is empty for renovation you can claim an exemption for up to 12 months.

Read What is Council Tax and for more Saving on Council Tax

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Prince Charles advocates that we ‘plan our homes, shops, schools and their relationship to one another. Such eco-engineering can learn from nature, from traditional communities and from the best of contemporary technology The emphasis should be on natural, low-impact materials that perform well together and can be produced in this country.’

What is The Natural House

• The Natural House uses natural materials, including clay blocks, sheep’s wool insulation and lime-based plasters, which reduce the risk of poor air quality.
• It is green without being hightech hopefully with low energy and maintenance bills for years to come.
• A breathable wall system avoids the risk of damp and mould accumulation, a key factor in the development of asthma and respiratory problems. Thus, the design is not only low-carbon, it is also health-promoting.
• Importantly it is quick and environmentally friendly to build and will appeal to an increasingly eco-aware homebuyer.
• The natural houses can be constructed in a range of architectural forms including paired dwellings, squares and terraces. It can be subdivided to form a family home, maisonette or smaller flat, reflecting changing demographics and needs over the long term.
• Health is improved with the use of natural, non-toxic materials, while the design encourages air movement that obviates the need for air-conditioning.

Prince Charles says
‘If we are to try to build our communities to improve the lives of inhabitants, then equal emphasis should be placed on the design of homes within these communities and their use of natural resources. Experts have told us for years that homeowners can add various gadgets to make homes more eco-friendly, putting turbines here and perhaps solar panels there — what might be called an “eco bling” approach.’
He is trying to put these ideas into practice throughout the Duchy of Cornwall at Poundbury and Newquay.

Other Enviro Housing Projects

• The Hanson Eco House
• The Barratt Greenhouse
• The refurbished Victorian Terrace
• BRE innovation park will arrange visits to see the latest eco-building techniques

Market Constraints

• We started by asking if the Natural House would ‘appeal to the first time buyer market if priced sensibly and why wouldn’t it be?’
• The variety of eco-options, claims and counter claims by different builders confuses the market.
• We need clear understandable standards.
• A brand is in the making with ‘The Natural House’ but it needs investment in the brand to retain it’s integrity.
• The Natural House should not be used to improve builders margins after a tough time in the market recently.

Building Research Establishment BRE

Simple tips for saving money on Housing.

• Live in a low cost area of the country and a low cost neighborhood.
• Do not rent or buy a property larger than you need. Big premises generally cost more than small.
• Social landlords generally subsidies your rent and private landlords seek to make a profit. Get on social housing waiting lists and understand the allocation criteria.
• Share with a friend, relative or on an arms length basis as a tenant or lodger.
• Check out those you live with and make sure you have an agreement about financial matters, which are the most likely to cause you to fall out.
• When buying a home look at the extra costs. Stamp duty and council tax are charged at set bands, better be just below than just above.
• Beware running costs of utilities, ground rent for leasehold and service charges in communal living
• Take in a lodger if you have spare space, house swap or rent out for holiday periods.
• Regularly check you are paying for the best deal on mortgage interest, utilities and haggle over the cost of repairs you are unable to DIY.
• Cut energy consumption to cut fuel bills
• Check to see if you are entitled to any housing benefits or other financial support.

Other Money Saving Tips

Lose The phobia of Money and Finance.Unless we have a degree in finance or economics we tend to feel inadequate to deal with the ‘complex’ financial issues. This can create an attitude where we try to avoid money issues and take the easiest path. However, if we spend a little time getting to know the issues at stake, we will find that we can save ourselves a lot of money. Some of the savings we can make, merely require a little common sense and very basic understanding of the financial system. 

Be a Better Shopper.

There is every incentive to encourage us to buy more than we need. We need to watch out for these tactics, and become disciplined so we make the best use of our money and avoid unnecessary impulse buying. Being a better shopper, doesn’t mean we become overly frugal, only shopping at 50 cent shops. It means we spend on what we really want and need and not fritter money on unnecessary services.

Be A Smart Buyer

When we go to the supermarket we look for the best value brands. When buying petrol, we will try hard to get the petrol station with the lowest price. But, when it comes to financial products (which account for a much bigger % of our income) we often don’t bother to look around. We accept our existing suppliers and throw away the potential for making real savings, which dwarf any other gains in our regular grocery shopping.

Know The Tricks of the Big Companies

Companies have many strategies for making profit out of consumers. That is their whole purpose. If we know how they can extract profit from consumers we can avoid falling into these traps and save money. For example, a very common strategy is for banks to attract us with high interest rates on savings account; when they have attracted our custom, they later cut interest rates quietly – hoping that we won’t notice, or at least won’t bother to change accounts. Then they can make high profits on the lower interest rate they are paying us. What we need to do is be aware of these tricks and be willing to move our account, when the introductory period ends. This same principle of hooking customers in, is equally applicable to many financial instruments.

Haggling.

Haggling doesn’t come easy to be. English reserve makes us feel it is rather undignifed to ask for a lower price. But, if you can overcome these inhibitions, you realise that the price often stated is merely a guide price. In the right circumstances we can make big savings, especially on goods which are on special offer or sale.

Claiming Money Back

Often we have trust that charges and fees are correct. However, big companies can make mistakes; many bank charges have been declared excessive and there is scope for claiming back money on these. Even if we make a mistake such as missing a payment, it is always worth writing to the bank asking if they will reconsider and not charge you this time. The important thing is that communication with your bank, financial provider is always beneficial.

Avoid ‘Poor Me Syndrome’

It is easy to get into debt and see it spiral out of control. however, we need to take responsibility for our financial situation and make positive steps to overcoming our current weakness. A negative attitude is never conducive to improving our financial situation. Stop feeling sorry for yourself and do what you can given your current circumstances.

Read Finance blog Saving Money on Financial Services

‘Young Rich & House Hunting’ is a new series on BBC 3 which follows some of the UK’s most affluent young people as they hunt for their perfect pads and go on a serious spending spree.
The Daily Telegraph has dubbed it ‘How big is my Jacuzzi’

Episode 1 Luke has up to 800,000 pounds to spend, while Sophia has a budget of up to a million.
Episode 2 Eco warrior Zeno has a budget of a million pounds to spend on a new eco home.

I think you will have got the idea. This is not a programme aimed at those with large student loans and average salary expectations.
Doubtless the market price for houses targeted in this programme will not have suffered as much as the national house price market. In fact this programme will not harm the value of property in the ‘Prime Golden’ niches of affluent houses.

The first episode starts on Monday 2nd May 2011 at 8.30pm

Read more about episode 1

Rent To Buy – The Basics

• The idea is that the provider will acquire your home for you, either by buying on your behalf or working with other landlords, and allow you to move in as a rent-paying tenant.
• You negotiate an option to buy the property outright after a fixed period of time, typically three to five years, at a price agreed when you first moved in.
• At this time, an agreement is reached over the monthly rental fee and the amount of deposit money often around 2% of the home’s value. A rent premium is generally charged then used towards a mortgage deposit when you exercise the option.
• Solicitors draw up the option paperwork which will include an assured tenancy agreement.
• You are then free to move into the property and  enhance the property as might any homeowner
• You’re under no obligation to buy at the end of the rental period.

Benefits of Buy to Rent

• You don’t need to take out a mortgage straight away. This provides time for saving and your financial position to improve.
• You are in a position of ownership on day one
• This is a low cost entry to get on the property ladder and become a homeowner
• You own 100% of the property on lease and then on mortgage
• If the property value increases, you keep the difference
• You are protected from most of the financial loss if prices fall.
• You can walk away if things change for you but the rent premium will be lost

Cons of Buy to Rent

• You are dealing with property professionals who’s job it is to make profits. Take your own legal and professional advice.
• You are taking out a lease option which  is a major commitment. It may seem easy but there are issues with all property arrangements and this is no different.
• You’ll be living in the same place for the agreed rental period, which means that you have to think carefully about your future plans before you sign up.
• The rent you pay with a lease option will be slightly higher than if you were just a tenant.
• Part of this additional rent is taken as payment for the option to buy along with the amount paid upfront.
• If you don’t exercise the option then the cost of higher rental payments is not refundable. However this may still better than having bought a property which may have fallen substantially in value.
• There are only a small number of lease option providers in the UK at the moment. If you’re based in the London area, contact The Lease Option Company (020 8947 8377/www.theleaseoptioncompany.co.uk).
• You may be tempted to stay with the option company when the deal is at an end but this may not be the best financial deal around.

Sources include

Simple2buy

Time out

Rent to Buy Guide

First Rung Now

Earn Some Rent

• Take in  a Lodger on short term or long term basis. Consider weekday renting Monday-to-Friday. This is popular in commuter areas and you get your room back at weekends. English language schools and some universities need “host” families for students.

• Rent out your home for key events like local horse racing, sports events, Olympics or conferences.

• Look at Home Exchanges to fund your holiday there are numerous web sites to register.

• Advertise garage, shed, cellar or attic space as storage. Other ideas on www.spareground.co.uk and renting out land for weddings, parties or camping.

• Unhotels or’ One Fine Stay’ is a business that opens up luxury homes in London to tourists when the owners are are away. Live like a local is the catch phrase and the aim is to return a sum equal to a normal rent to the home owner. The added value services  of cleaning, reception and room service are provided by the company.

• Depending on location you could earn up to £500 a month by renting out a driveway, allocated parking space or unused garage, particularly if you live near a football stadium or train station where demand for parking is high. Register your space on ParkatmyHouse.com or YourParkingSpace

Work with Your Home

• Is your property unique or suitable to rent to a film or TV production company. They are often looking for new and interesting venues to film. The Collective and Lavish Locations is often keen to hear from owners of spacious family homes.

• Consider running a bed and breakfast business if you have the bedrooms.

• Tutoring at home is a good way for university students or graduates to make a bit of extra cash. It’s free to register your tutoring skills with First Tutors and Personal Tutors; the money’s not bad either.

• Grow your own food in a year-round vegetable garden and keep chickens and bees. The you can sell your home-grown produce at local shops, markets or from home.

• Use your home as an office or business base or even let someone else. Party plan and Avon selling has dramatically increased as the recession has bitten.  Beware of the rules and regs including sub letting or capital gains tax.

Other Ideas

• Can you sell a chunk of land or part of your garden to a developer to build on

• Look at  equity release schemes to generate extra cash. There are two main types, home reversion schemes and lifetime mortgages and may work for older people with substantial equity in the house..

• Sell unwanted possessions in a garage sale or via Ebay.

• Get paid to look after someone’s home as a house sitter. Wealthy owners are reluctant to leave quality properties unoccupied and they tend to take more holidays than most. Try a good agency like Home Sitters UK.

Modern well designed,ready to live in homes of this nature could help fill part of the low cost housing shortage so long as funding is available. However there are marketing issues to tackle.
Modular homes have been associated with ‘Portacabin cities’ with rectangular blocks in ugly environments with no redeeming features for the resident. Permanent leisure parks and static caravans have gone upmarket and now provide a large proportion of second homes and holiday lets. This shows what can be done in terms of quality and design. There are community charge and income tax benefits for these leisure properties, why not more help for permanent pre-built houses.

While architects and the RICS are clearly interested in exploring the use of prefabrication methods in design and construction the result needs to appeal to home owners. Neither the name Prefab or Modular home will help sell such a property and the market needs to be more inventive. The market for such a pre-built dwelling is about understanding a business model and convincing buyers and lenders of the long term value proposition.

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Ground Source Heat Pumps are long term, reliable and have a relatively short payback term. They need land space but do not disfigure your landscape.

Wood and Biomass Boilers use a comparatively cheap and replenishable fuel source. Storage and reliability of supply of fuel needs to be considered. Environmentally the impact of transport can be an issue.

Combined Heat and Power (CHP) is growing in popularity with gas used for generating home produced electricity. Clean but still uses fossil fuel.

Air Source Heat Pumps uses inexpensive technology to generate power from the air. It needs a back-up for prolonged cold spells and it creates some noise.

Household Wind Turbine is progressively more affordable but needs maintenance and will likely only produce 25% of a home’s needs so major back-up energy is required.

Solar Thermal is widely used for hot water but is technically complicated and expensive for power generation. It has a very long pay back period.

Solar Photovoltaics uses the sun and has low maintenance costs. Still expensive for relatively little electricity generation.

Condensing Boiler is a mass market favourite that uses fossil fuel but has recently had problems in very cold weather.

You do not chose your home on the basis of the energy supply and generation method. However it is worth maintaining a watching brief on the technologies as they will impact on house prices in unforeseen ways over the next few decades.