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More National House price information |
29 October 2007 10:02 |
TIMES ONLINE October 29, 2007
House price gloom as the wealthy turn away
Gabriel Rozenburg, James Rossiter and Suzy Jagger
House prices fell for the first time in two years this month, sending a shudder through millions of homeowners already hit by rising mortgage repayments and more expensive borrowing.
The outlook for homeowners is likely to worsen with news that the wealthy are losing confidence in bricks and mortar as an investment. There has been a big drop in City bonuses being used to buy prime property in Central London and in the popular second-homes areas, triggering fears of price falls in the South West, East Anglia and the Cotswolds.
Today’s figures will increase the anxiety of millions who have banked on ever-rising prices to fund their old age and pay off mortgages. To add to their misery came a new warning from America, that Britain would not escape the fallout from the US as the property market there went through its worst recession in 16 years. Robert Shiller, Professor of Economics at Yale University, who forecast the end of the dot.com bubble in March 2000, told The Times that the slowdown would start in London.
The amount of City bonus cash flowing into prime London property and into second and third homes will fall by 60 per cent to £2 billion in the coming year, according to one of the country’s largest property agents. This will lead to at least six months of falling prices in Central London, predicted Savills, the estate agency, which specialises in selling houses worth £1 million and more. Also at risk are the Cotswolds, the South Westand parts of Norfolk, Suffolk and Kent.
Today’s figures come days after a report published by the International Monetary Fund saying that Britain’s housing market is overvalued by as much as 40 per cent.
House prices fell by 0.1 per cent in October, following two months of zero growth as higher interest rates and falling confidence hit the market, according to today’s report by the property website Hometrack. Analysts predict that figures to be released by Nationwide this week may show a sharp slowdown in house prices after months of falling demand, declining sales and weaker confidence in the economy and in housing as an investment.
Average prices fell in all regions last month except the West Midlands where they were static, Hometrack said. Richard Donnell, director of research at Hometrack, said: “Overall we expect the rate of house price growth to slow further over the coming months with further small price falls likely in markets where achievable pricing levels are falling into line with demand. This is likely to be focused on the markets that have seen the greatest rises over recent years.”
Savills gave a warning that the top end of the property ladder and the second-home market could be hit hardest because financiers, accountants and lawyers no longer saw property as a good buy and were more likely to put money into hedge funds.
Meanwhile, the Centre for Economics and Business Research predicted that the credit crunch, combined with five interest rate rises in just over a year, would cause prices to fall for the rest of this year and into early 2008. But it suggested that the housing market would shrug off the difficulties within a year and that by 2010 annual growth would be back at up to 7 per cent because of an imbalance of supply and demand.
From The Times online |
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Is this the beginning of the end of Rightmove? |
26 October 2007 09:26 |
I thought you might want to know what is happening with regard to Rightmove.
I dont like their dominance in the market, a necessary evil, I have written several times to the Directors, they have never bothered to respond
Simon |
News International invests in search engine
By Ben Fenton, Media Correspondent
Financial Times
Published: October 25 2007 02:37 | Last updated: October 25 2007 02:37
News International has made a multi-million pound investment in a new property search engine in spite of already owning half of Propertyfinder.
Globrix, an unlisted company, said it received funding for an advertising drive next year with reserves for its second and third years as it tries to establish a new search engine modelled on a news aggregation business.
Currently, property search engines such as the market leader
Rightmove
charge estate agents to market their properties on the site.
Daniel Lee, the chief executive of Globrix, said: “We see our model as more like a Google, where we gather all the properties available on the net and make our money by reserving part of the search page for advertising.
“Estate agents want to get as many eyeballs as possible on their properties and we believe we can get that.”
Agents would have to opt out from having their listings included on the site, which will use “spider” search engine technology to guide customers to properties that fit their criteria.
News International, which owns 50 per cent of Propertyfinder with an Australian partner, declined to comment on the deal and neither party was prepared to say how much money was involved.
It is believed the company, which publishes The Sun, The Times and their Sunday sister papers, hopes the new search engine will complement its existing holding.
One industry analyst said: “Barriers to entry in this market are pretty high and it is not clear that estate agents would welcome this kind of approach.
“On the other hand, nothing that involves support from News International from a cash and marketing point of view should be underestimated.”
At least one other website,
Zoomf.com
, approaches searches in a similar way.
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Petition to the Prime Minister |
24 October 2007 13:44 |
We (10 Downing Street) received a petition asking:
"We the undersigned petition the Prime Minister to Take the opportunity, following the recent announcement to postpone the introduction of Home Information Packs (HIPs), to proceed with Energy Performance Certificates but to totally withdraw all other elements of HIPs. Following this, serious consulation should take place with Stakeholders to consider real ways of improving the Home Buying and Selling Process." |
Details of Petition
"It is clear that, amongst many Stakeholders, Consumer groups, the media and most importantly the public, that there remains massive concern that the proposed Home Information Pack (HIP) is not fit for purpose and should be totally withdrawn, not merely postponed until the 1st August. The House of Lords Merits Committee expressed the same concern as have a number of Opposition debates in Parliament. The Government should now grasp the opportunity to proceed with Energy Performance Certificates but scrap the remaining elements of the pack. A serious debate, as previously offered by the Stakeholders, should then take place, on real ways of improving the home buying and selling process to the benefit of consumers."
Read the Government's response
The Government believes that introducing energy performance certificates without home information packs would be neither practical or acceptable. It is important to introduce energy performance certificates and home information packs at the same time. Cutting carbon emissions should go hand in hand with market transformation.
The Government are working with a range of different stakeholders from industry organisations, consumer groups and "Green Groups" to ensure that HIPs are introduced as smoothly as possible with the minimum disruption to the market. The Government have reorganised our stakeholder arrangements to ensure this works as effectively as possible and that we engage closely with individual stakeholders on the issues that matter most to them. The Government have now formed a stakeholder panel chaired by the Housing Minister and consisting of representatives of the leading groups involved in the home buying and selling process. The Panel is considering further improvements to the home buying process that would be in the interest of consumers. The first meeting of this group was on 25 July 2007 and further meetings of the Panel have been scheduled to take this work forward.
This is the response I receieved by e-mail from today- Simon
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OPPOSITION DEBATE ON HIPS IN THE HOUSE OF COMMONS |
23 October 2007 10:16 |
Shadow Housing Minister, Grant Shapps, introduced an opposition day debate on home information packs and stamp duty.Mr Shapps opened the debate by proposing a motion which called for home information packs to be scrapped and Energy Performance Certificates (EPCs) to be implemented separately, and which asserted that ‘ending stamp duty for first time buyers up to £250,000 would do far more to help home buyers and sellers’. |
Mr Shapps spoke about the effects of the partial implementation of home information packs: ‘Now that HIPs are partially implemented, the results are becoming all too clear, with an already fragile housing market shaken to the core by a dramatic drop in the number of new homes being put up for sale. While everyone agrees that home buying and selling really should be faster and easier, is it not time that the Minister admitted that the Government have forced on England and Wales a half-baked law that is clumsy, ineffective and damaging to the housing market?’ He also criticised the Government’s actions for the effect on those who trained to become a HIP inspector: ‘We warned the Minister that she was wrong to suggest that qualified HIP inspectors could earn up to £70,000 a year by training to become a HIP inspector or domestic energy assessor. In reality, those hard-working people have been hung out to dry by the Government. Many of them have spent their savings on a fundamentally flawed scheme, and they, I think, deserve an apology. Will the Minister take this opportunity to apologise to those enterprising people who now find themselves without sufficient work and out of pocket?’ Mr Shapps suggested that EPCs could still be implemented without HIPs: ‘We think that EPCs can be introduced more quickly and effectively without HIPs. Will the Minister explain why our approach was possible in Northern Ireland but not in England and Wales? On their own, energy performance certificates are a good thing. They mean that house buyers will have better information about their new homes.’ Minister for Housing, Yvette Cooper, proposed a new motion which stated that the House: ‘…considers that the introduction of Home Information Packs and Energy Performance Certificates can improve the process of home buying and selling for consumers and provide them with vital information about the energy efficiency of homes and practical suggestions about how to cut fuel bills and reduce carbon emissions; and notes that the Government continues to work with industry to consider further reform of the home buying and selling process in order to maximise the benefits for consumers.’ Ms Cooper questioned the opposition’s costing of HIPs: ‘I can also tell the House that, contrary to predictions by the Opposition, HIPs are not costing an average of £1,000 each. The current average market price is £300 to £350, most of which covers the cost of things that buyers and sellers of homes pay for under the traditional system. That means that they are saving money thanks to the introduction of HIPs. ‘Moreover, some estate agents are offering HIPs on a no-sale, no-fee basis, or even for free. Indeed, search costs are coming down as a result of HIPs, with more than 80 local authorities cutting the price by an average of £30, and a couple doing so by more than £100. In addition, the Energy Savings Trust has said that the new energy performance certificates have the potential to save homeowners £300 a year on fuel bills.’ She also defended the introduction of HIPs, saying that they have improved competition: ‘It is significant that the introduction of HIPs has improved competition and cut the cost of searches. I believe that searches need to be reformed further, but it is important to recognise that personal searches are covered by all sorts of insurance and protections, and to ensure that what is effectively misinformation about them is not spread around. HIPs and EPCs are already increasing transparency. They are speeding up the process of providing information, and bringing in new competition to help cut costs for consumers.’ Liberal Democrat Spokesperson for Housing, Paul Holmes, questioned the transparency of the Government’s action on HIPs: ‘So much about HIPs remains clouded. When will the Minister release the results of those pilot tests? Why has there been such a delay? Since the legislation came into force, how long has it taken to put the packs together and how does that compare with the four to five days envisaged by the Government? The Minister said that the answer is seven to eight days. The scheme has been running for nine weeks, so for how many of those weeks and on how big a sample is that figure based? How much have the packs cost in reality, and how does that compare with the £400 average predicted by the Government? The Minister suggested that the answer is £300 to £350 on average so far, but on how many weeks and on how big a sample is that based? Given that this legislation has been so controversial, surely she should share this information and research with the House, so that we can reach an informed decision on HIPs and their future.’ | |
Briefing ctd. | Douglas Carswell (Con, Harwich) spoke about the opposition to HIPs, and mentioned the NAEA: ‘The evidence is so overwhelming that I shall be brief. Home information packs are a monument to incompetent government. The Royal Institution of Chartered Surveyors, the National Association of Estate Agents, the Council of Mortgage Lenders, and even the Government’s own Better Regulation Commission have been critical of HIPs. Even the Consumers Association, which was originally a supporter of the packs, said that
“the new ‘half-HIP’”—
which lacks a home condition report—
“will be a useless but a very expensive waste of time”. In evidence to the House of Lords, the National Association of Estate Agents stated: “There are many other ways of improving the home buying process but HIPs will not achieve this. . . HIPs will actually have an adverse effect on the market. Our independent research indicates that a significant number of potential sellers will think twice before marketing their property if they have to consider paying for a HIP . . . The net result would be a reduction in supply”. The House voted on Mr Shapps’ motion, which fell by 166 to 363. The House then voted on Ms Cooper’s motion, which was passed, 347 to 169. The motion was therefore resolved, ‘That this House believes that the ongoing reform of the home buying and selling process should revolve around the interests of the consumer and environmental sustainability; considers that the most important thing for the housing market is macroeconomic stability including sound public finances; therefore further believes that unfunded tax cuts including on stamp duty would be irresponsible; further believes that increased house building to deliver more affordable homes is essential to help first time buyers; further considers that the introduction of Home Information Packs and Energy Performance Certificates can improve the process of home buying and selling for consumers and provide them with vital information about the energy efficiency of homes and practical suggestions about how to cut fuel bills and reduce carbon emissions; and notes that the Government continues to work with industry to consider further reform of the home buying and selling process in order to maximise the benefits for consumers.’
(SHE REALLY DOES LIVE ON A DIFFERENT PLANET FROM THE REST OF US AND DOESNT KNOW WHAT ITS LIKE DOWN HERE IN THE REAL WORLD - SIMON) Questions in the House THIS WEEK on HIPs This week the following replies were given by the Housing Minister.
In response to a question from Andrew Mackay on Home Information Packs (HIPs), Housing and Planning Minister Yvette Cooper explained that interest rates and uncertainty in the financial markets were affecting the housing market far more than HIPs. As a supplementary, Andrew Mackay argued that HIPs were harming market and that inspectors will not earn anywhere near what they were expected to. Yvette Cooper disagreed and stated HIPs were helping with reducing search costs. She claimed the Conservative policy would be of far greater detriment to housing workers. Responding to a question from Shailesh Vara on research by the Royal Institution of Chartered Surveyors on the impact of HIPs on the housing market, Housing and Planning Minister Yvette Cooper replied that RICS had opposed HIPs and energy certificates for a long time. Buyers decisions were the most significant factor in the market, the Minister stated. In response to a question from Andrew Miller on the home information pack scheme and Conservative plans to abolish it, Housing and Planning Minister Yvette Cooper stated that the Conservatives needed to be aware that Friends of the Earth had supported energy performance certificates, which provided important information to consumers. Answering a question from Clive Betts on introducing Home Information Packs more widely, Housing and Planning Minister Yvette Cooper explained that the Government were working with various stakeholders, including Which? on what the next steps should be in this regard. Following a question from Conservative shadow Minister for Communities and Local Government Grant Shapps on scrapping HIPs for the Northern Irish system of energy performance certificates, Housing and Planning Minister Yvette Cooper replied that Northern Ireland had not introduced EPCs and were learning from the measures that the UK Government had taken. They would also not benefit from the reductions in search costs, she added, and called for a sensible debate on improving the home buying system. In response to a question from Bob Marris on the housing situation in Denmark where exchange times were reduced after a similar scheme to home information packs was introduced, Housing and Planning Minister Yvette Cooper stated that substantial improvements to the housing market could result from the scheme and lessons should be learned. |
A summary from our Association (National Association Of Estate Agents NAEA)
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More Doom & Gloom! |
19 October 2007 10:22 |
IMF raises spectre of UK house price correction
By Edmund Conway, Economics Editor in Washington DC and Harry Wallop
Telegraph.co.uk
Last Updated: 12:44am BST 19/10/2007
Britain’s housing market could be heading for a slump, with the credit crisis likely to have a “sizeable impact” on property prices, the world’s leading economic watchdog has warned. |
House prices in the UK have risen by up to 50 per cent more than they should have done over the past decade, leaving them dramatically overvalued, according to the International Monetary Fund’s calculations.
As a result, falling house prices are now a major threat for the UK’s economy, the IMF said.
The IMF’s warning, in its twice-yearly report on the state of the global economy, is its most stark ever on the state of the UK’s housing market and will trigger significant alarm among homeowners already concerned by signs of a slowdown.
It said there was evidence to suggest that house prices in the UK were more overvalued than in America, which is currently experiencing its worst housing slump since the Great Depression of the 1930s.
The crisis there has been driven by problems in the “sub-prime” mortgage market for people with poor credit histories, which in turn has triggered the wider global “credit crunch”.
In Britain, the average house prices have risen from £58,403 in 1997, according to the Nationwide building society, to £172,065 at the end of last year – a tripling in the last decade.
Recent estimates from other lenders have put the average house price in the UK at more than £200,000.
House prices have continued to climb strongly this year, but the level of growth has slowed markedly in recent months.
The IMF’s warning will add further pressure on the Bank of England to cut interest rates following five increases since last summer.
With families facing the biggest squeeze on their disposable income in at least a decade, the prospects of a house price “correction” – either below inflationary increases or actual price falls – will cause major concern to homeowners.
The IMF said that since 1997, house prices in the UK had risen by 50 per cent more than its economic model for predicting house price growth suggested they should have.
The model is based on wage inflation and economic growth.
Overvaluation in countries including Ireland and Spain, where many Britons have second homes, was even more pronounced, the IMF said.
Referring to several housing markets in Western Europe - including the UK’s - the report said: “The estimates suggest that a number of advanced economies’ housing markets outside the United States could be vulnerable to a correction.”
The report added that an extended period of tight credit conditions “could have a significant dampening impact on growth” on housing markets in some European countries, including the UK.
Charles Collyns, the IMF’s expert on Europe, said some of the house price increases in Britain could be explained by so-called “economic fundamentals” such as immigration and the shortage of new homes being built.
However, he added: “We are certainly concerned that the recent increases in prices have gone beyond those fundamentals.”
The IMF said that prices should not have risen so far.
“Given that rapid increases in some countries have raised concerns about possible excesses, some cooling seems desirable, if it does not go too far too fast,” the report said.
“But could a housing correction in western Europe be as deep as in the United States?
"[Our analysis] suggests that the extent of house price overvaluation may be considerably larger in some national markets in Europe than in the United States, and there would clearly be a sizable impact on the housing markets in the event of a widespread credit crunch.”
Yolande Barnes, head of research at property group Savills, said: “The IMF is writing in large letters what we all were all warned about by the Northern Rock debacle.
"If credit is less readily available, asset prices will fall. And clearly property is chief amongst those.”
Simon Rubinsohn, chief economist at the Royal Institute of Chartered Surveyors said it was unlikely the UK would experience a price crash, but said: “The IMF is logical when it says our house prices are overvalued. We all know that they are expensive, especially in London.”
He predicts house price growth in the UK to fall from an expected 10 or 11 per cent this year, to a zero next year – a fall in real terms.
In America, repossessions rose by 46 per cent last year, while repossessions are expected to hit 1.5 million over the next two years.
The National Association of Realtors has said the median sale price for homes will fall by 1.3 per cent to $219,000 this year.
The IMF’s warning comes only hours before Alistair Darling boards his flight to Washington for his first IMF meeting as chancellor.
A housing slump would be a major embarrassment to Labour, which is banking on steady economic growth in the coming years ahead of a potential election.
In a further blow to the Government, the IMF used its closely-watched World Economic Outlook report to cut its UK growth forecast for next year by almost half a percentage point to 2.3 per cent.
According to City analysts, the housing market is already starting to slow, after a blistering decade of growth.
The Royal Institution of Chartered Surveyors said last week that prices are now falling, with potential buyers abandoning the market at the fastest rate in more than four years.
Homeowners have been hit by an unexpected increase in mortgage costs due to the crisis in financial markets, which has pushed loan prices higher.
This has pushed up the mortgage burden to the highest level since the last housing crash in the early 1990s.
The IMF has warned that this financial turmoil, which triggered the run on Northern Rock last month, could continue for some time, pushing mortgage costs still higher.
Although house price inflation has bounced up and down over the past decade, it has never dipped into negative territory since 1996, when the market was in the final stages of the last property prices crash.
Diana Choleyva of Lombard Street Research said that while prices are expected to fall next year and possibly in 2009, the drops will be relatively small.
“This is unlikely to be a full-scale crash, with prices dropping by 15 per cent,” she said. “I think it is more likely prices drop by 2-3 per cent, and up to a maximum of 5 per cent.”
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Trading Standards Department |
15 October 2007 16:24 |
I meant to put this on the blog weeks ago.
The Trading Standards Department are going to take any action against people or agents who haven’t got a Home Information Pack (HIP).
We are told that the Trading Standards are going on their enforcement courses in November.
A bit late!
Simon |
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Surveyors see house price falls |
11 October 2007 09:06 |
House prices are continuing to turn down, says the Royal Institution of Chartered Surveyors (Rics). |
Its latest survey says UK house prices in September generally fell again, with more of its members reporting a fall in prices locally than an increase.
It said enquiries from new buyers had fallen for the tenth month in a row.
Rics blamed the downward trend on a combination of factors, such as higher interest rates and lenders tightening their lending criteria.
"A major correction in the market seems unlikely while economic growth is above trend and employment conditions remain buoyant," said RICS spokesman Jeremy Leaf.
"The combination of rising interest rates, the introduction of home information packs (Hips) and volatility in the financial markets resulting in tightening of lending criteria, has certainly affected the confidence of buyers and sellers," he added.
Rics said that the downturn seems to be severest in East Anglia, and the West and East Midlands, though prices are still going up in Scotland and London.
Declining market
Most commentators agree that the property market is now responding to the five rate rises imposed by the Bank of England since the summer of 2006.
With new mortgage approvals, as measured by the Bank of England, declining from the levels seen last year, a more subdued market seems inevitable in the coming months.
What is not clear, so far, is the extent to which the crisis at the Northern Rock will have put off home buyers.
The bank was one of the country's most active lenders but has now scaled back its lending because of its financial problems.
Would-be borrowers may have approached other lenders instead, but a dent in buyer confidence generally may also have lead to a further drop in mortgage applications.
This week the Council of Mortgage lenders (CML) said that the burden of repaying the interest on mortgages was at its worst in 16 years for first-time-buyers, and at its worst in 15 years for people moving house.
It predicted the situation would get worse in the coming months.
"As lenders move to price for the risk they are taking on, mortgages are set to become more expensive for customers who have poorer credit histories," said the CML's director general Michael Coogan.
Thursday 11th October BBC NEWS
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E-MAIL FROM SPLINTA |
10 October 2007 09:17 |
We are now over two months on from the launch of HIPs for 4 bedroom properties and a little over a month from the 3 bedroom implementation. Judging by the questions I have received most people have had some teething problems - mainly over when a HIP is or is not required - but in the main the process of ordering a pack has been found to be straightforward. That doesn't mean to say it has all been plain sailing! |
A CHANGING MARKET
We are entering a much tougher period for house sales. HIPs is not the only cause of this change (as the Usual Suspects are desperate to point out) but coming on top of a rotten summer, the Northern Rock crisis and a tightening of lending criteria, HIPs has certainly not helped keep the market fluid. Many agents are reporting that instruction levels have fallen dramatically in the last two months and figures from RICS/Rightmove etc bear this out. I am aware of some agents that have not taken a single 4 bedroom instruction since August 1st. Where instruction levels have been maintained there is evidence that the properties have been on the market since before the two HIP implementation dates and that vendors who have not sold are now changing agent. The crunch question is 'How many fresh properties are coming on the market?' and the answer appears to be 'Not many''. We always predicted that some 30% of sellers would be put off coming to the market by the liability to pay for a HIP and that prediction appears to have been an underestimate.
Couple falling sales stock with changes in buyer sentiment and we are potentially facing a major problem. Some buyers are finding it hard to obtain mortgages now that lenders are running scared in the wake of the sub-prime scandal. Those that can borrow feel that house prices may be about to fall and so will put off their buying decision. Those that can and will buy are increasingly cautious and viewing to sales ratios are rising. It all adds up to a difficult market that may last for a significant period.
WORSE TO COME?
Two factors may make the situation worse than it already is. Firstly we expect HIPs to be extended to 2 bedroom properties or even the entire market - though probably not this side of Christmas. Secondly we are rapidly heading for the end of year and with it the end of First Day Marketing. As you know, for the present the marketing of a property can commence as soon as the pack is ordered. This is due to end on December 31st and from then on it will be a requirement that you have physical access to the entire pack before marketing starts. In the near future SPLINTA will be making representations at the highest level to obtain a commitment from the Government to allow the continuance of FDM. There really can be no justification for imposing this artificial delay as there is very little evidence that agents have ignored HIPs and so the primary reason for ending FDM has been removed.
SPLINTA has deliberately maintained a low media profile in the last two months as it would not have served our purpose to have done otherwise. HIPs stand or fall by their effect on the market and the information you give us will shape the voice of the campaign in the coming weeks. Please be assured that despite what others would like to believe we are not standing back and accepting that HIPs are a done deal. Timing is everything and, with a weight of evidence, when the time is right we shall make the media and politicians aware of what is really happening in the post-HIP market.
Kind regards
Nick Salmon FNAEA (Honoured)
www.splintacampaign.co.uk
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Isle of Wight Homes |
09 October 2007 09:42 |
Yesterday afternoon we both popped in to see some clients to pick up the keys, as exchange of contracts has recently taken place. This was the fourth time we have sold for this lovely couple & they now they are moving off the Isle of Wight to be closer to the family. We wish them all the best in Yorkshire. One interesting point they said, that comparing Isle of Wight Homes with all the other agents they have ever dealt with, we were always the most accurate at valuing properties (they are very knowledgeable about the local market). Often agents over value just to get the work.
We found the buyer for their property in just a few weeks. |
On Friday evening we both went to collect keys from a client who completed contracts yesterday. They were absolutely delighted that at last they had sold. Previously they had been with two other agents trying to sell for several years. They made the point that out of all the agents, we had had more quality viewers, who had seen all our photographs & text details on our site & were “genuine” buyers. A really interesting couple, we are lucky to meet such people.
It’s heartening to know that our system works so well. We have been told by potential buyers, especially those on the Mainland, that we save them a lot of time, the usual response is that the property “looks exactly as it does in the pictures”.
I had better get back to work, I’m avoiding the next job on my desk, its been building up in the last week – clearing out 21 sold property files that have to be deleted from the various computer systems/ sites/ files etc.
Just got a call to deliver some keys - I'm off!!
Simon
P.S. Just got back from the key delivery - the buyers, who were looking for an Island property from Spain said our site was "Superb" & that we "stood out from all the other agents", praise indeed! (10.50 a.m.)
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National Association Of Estate Agents |
08 October 2007 12:27 |
HIP's |
..."Thank you for the additional comments this week on your thoughts on HIPS and in particular the problems you are having. These can be summed up in the main as delays, caused in particular by drainage searches and leasehold information. There is some evidence that certain Local Authorities are still rationing personal searches and of some local solicitors who are acting on behalf of purchasers not accepting them.
Many of you comment that applicants are often not asking to see the HIP and are not that interested even when it is offered.
A common continuing feedback is that supply is being affected over and above any reduction caused by the higher interest rates.
We will shortly be conducting a further electronic survey so please do complete it as it is vital as part of our ongoing discussions with Government.
The one issue, from the feedback at least, that is not causing a delay is the provision of an EPC. That at least will please the Minister and this is, I believe important, if we are to persuade Government to continue to allow early marketing.
Although I did mention it last week, we are still getting calls about the so called “drop dead date”. This is the date after which all properties will require a HIP regardless of when they were first marketed. In the regulations this is still in as the original date of 1st January 2008. However we fully expect this to be altered so there is no need to worry at this stage."
Part of the Weekly e-mail from the Chief Executive
of the National Association of Estate Agents (NAEA)
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Article by Kirstie Allsop, presenter of Channel 4 show, Location, Location, Location. |
02 October 2007 10:36 |
Commentary
As I travel around the country I see a real stagnation in the property market. There is less movement than at any time in the past 20 years. |
There are a number of reasons for this but one of the most important is the cost of moving. When Gordon Brown raised stamp duty, it imposed an enormous additional cost on moving home.
Levied at three per cent on a house worth £350,000 - by no means an extravagant price, particularly in the South - it adds £10,500 to the bill.
Taken with all the other fees - estate agent, surveyor, solicitor - it becomes a punitive cost. That is why so many people are deciding not to move and are spending increasing amounts on improving their existing homes.
So home owners are stuck and with Hips they will be even more stuck. There is a real sense of desperation out there.
People are worried - they ask me about Hips all the time. They will just gum up the market even more, which is why a Tory pledge to scrap Hips would be so healthy for the housing market.
I followed the Commons committee stages of the legislation very closely and it was utterly depressing. The Government was responding to pressure from groups with huge vested interests. It's a very poor way to make public policy.
And, of course, the one worthwhile thing that the Government had promised to do in its manifesto - prevent gazumping - has been dropped.
The argument for Hips is perverse. If you are buying a product in a shop, you do not just take the vendor's word for it, you don't just accept their sales pitch at face value. If you are sensible, you make your own rigorous checks about what is a good buy and what isn't.
If you do that with a fridge or a TV, how much more important it is to do it when you make the biggest purchase of your life. It is up to the buyer to check it out and decide whether it is a good buy.
A Hip from the vendor cannot do that. Relying on information from a seller is the last thing a careful buyer should do.
There is also so much rubbish talked about green issues. The environment is important. Houses produce more carbon than cars and planes combined. So people really must do what they can to conserve energy.
But you can have the most environmentally advanced house in the world and what good will it do if the person living in it flushes the lavatory 20 times a day or leaves the lights burning? Energy efficiency is vital, but it is not about the house, it is about the person living in it.
I feel very sorry for the people who have trained as Hip inspectors. They have been sold a pup and should be compensated.
But Hips must go and the Government should sit down with industry bodies and discuss more sensible ways of making house buying easier because at the moment it is made uniquely stressful.
It would help if stamp duty was reduced to a standard flat rate of one per cent across the board. That would lubricate the market by making it cheaper for people to move, while not putting up prices.
Telegraph .co.uk Last Updated: 2:31am BST 02/10/2007
Thought this would be of interest
Simon
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