A US property auction firm is gearing up to flog one of the biggest lots it has ever handled – an entire city. Higgenbotham Auctioneers International (HAI) announced it will handle the sale of White’s City, New Mexico, which has been managed by the White family since the beginning of Amercica’s ‘roaring 20s’ boom era.

Members of the family said younger generations are less interested in running the town, meaning the decision had been taken to offer it up for auction. Charles Dugger, the oldest of the family members who manage the legacy, said:

“It’s time to move on. We have spent our lives here, our children have interest outside this area and have chosen not to continue.

“We are excited to offer this city, our home, to a new visionary that will continue its 80 year legacy.”

Based near Carlsbad Caverns National Park, the success of White’s City is based on the throngs of daily visitors to the area.

Facilities include two operating motels with 105 rooms, an RV park with 46 spaces, 25 camp sites, a post office, grocery store and two restaurants. Also up for grabs as part of the deal are gift shops, a gas station, a museum, an opera house and even an ice cream parlour.

The entire municipality and surrounding acreage will be offered on July 14th at 11am.

HAI national business director Laura Whitt said:

“The potential here is awesome. There are ten individual business enterprises operating in White’s City with each of them being profitable and self sustaining. Combined, the assets are a watershed that has unlimited potential.”

Three UK high street mortgage lenders have upped the costs of their fixed-rate home loans. Bradford & Bingley, First Direct and the Co-operative bank stepped up fees on Wednesday as banks continue to find it harder to lend.

The move may hits property investors letting property while others will have been deterred from buying thanks to the increases.

The Co-op hiked its three-year fixed rate by 0.7 per cent and its five-year rate by 0.9 per cent. Bradford and Bingley increased its fixed rates by between 0.5 per cent and 0.7 per cent while internet and phone bank First Direct moved its two-year fix to 6.15 per cent, up 0.16 per cent.

Finance Markets reports HM Revenue and Customs recently said the number of house sales in the UK fell by 13 per cent in May compared with April.

And on Thursday Moneyfacts reported the average rate for two-year fixed rate mortgages has now broken the seven per cent mark. Moneyfacts mortgage experrt Darren Cook said:

“As the rates on offer increase, so does the relative risk. More and more borrowers are likely to find the increased repayment too much to bear.”

“However, it seems not all is lost as there could be some light at the end of the tunnel for borrowers. Today, swap rates have decreased from its 6.52 per cent high last week, by 0.16 per cent to 6.36 per cent.”

He added the firm hoped this downturn was not “short-lived” and that lenders will play a “fair game” by reflecting the decrease in the rates they offer over the next few weeks.

Bahrain is stepping up its real estate development drive with the unveiling of a master plan city involving up to 30,000 homes. Diyar Al Muharraq was launched on Wednesday and will involve an estimated BHD 1.2 billion ($ 3.2 billion) worth of investment, with Kuwait Finance House the main stakeholder.

More than 100,000 people will be housed by the project when it is completed and developers said the long-term plan was to support a social housing programme. Based on the northern shores of Muharraq, the development is set to be released to property investors in stages, with the first facilities ready for use in 2010.

Aaref Hejres, chief executive officer of Diyar Al Muharraq, said:

“This is the first time that a private developer in Bahrain has invested in a development that includes various levels of housing as one of many options, all of which will share the same high standard of living and amenities.”

He added the project’s goal was to be part of a “concerted housing strategy” for the Kingdom. The new city’s comprehensive community services will include recreational, school, medical and retail facilities. Around 40 kilometres of waterfront, together with sandy beaches, will also form highlights of the development.