Written By Em

Em

Em Morley

Majority are Happy with Their Estate Agent

Published On: August 17, 2015 at 1:53 pm

Author:

Categories: Landlord News

Tags: ,,,

Most people are happy with the service provided by their estate agent, according to Which?

It found that out of 1,990 people surveyed in June regarding their experiences with buying and selling homes, 65% were either very or fairly satisfied with their agent.

Majority are Happy with Their Estate Agent

Majority are Happy with Their Estate Agent

Just 16% were fairly or very dissatisfied, while the rest did not feel strongly either way, states the consumer organisation.

Recently, The Times reported that estate agents are “repeatedly named among the most-hated professions in Britain”.1 However, it seems that the customers are not doing the complaining.

However, Which? also found that out of home-moving service providers, estate agents came bottom of the list.

Of those surveyed, 69% were satisfied with their surveyor, 71% with their mortgage broker, 72% with their conveyancer and 77% with their mortgage lender.

Furthermore, Which? advises those buying homes to not just search online.

It says prospective buyers should search the area they want to buy in and register with estate agents face-to-face.

Advising vendors, Which? says: “OnTheMarket.com is owned by a consortium of high street estate agents who want to disrupt the market dominance of Zoopla and Rightmove.

“If your agent has signed up to list properties with OnTheMarket.com, they will only be allowed to list properties on one or the other of Zoopla or Rightmove (this is a contractual stipulated by OnTheMarket).

“If you’re not comfortable with this then you will need to choose a different estate agent.”1

1 http://www.propertyindustryeye.com/two-thirds-of-people-happy-with-their-estate-agents-says-which/

Balancing the North-South Divide will Solve Housing Crisis

Published On: August 17, 2015 at 12:55 pm

Author:

Categories: Landlord News

Tags: ,,,,

The director of Home.co.uk believes that balancing the north-south divide will solve the housing crisis currently experienced in the south of England.

The property search engine found that the gap between asking prices in the north and south is so wide that it completely contradicts Chancellor George Osborne’s idea of a northern powerhouse.

According to the Home asking price index, prices in the north of England dropped in every region between July 2008 and July 2015. The North East experienced the greatest falls, with a 6.45% decline.

Balancing the North-South Divide will Solve Housing Crisis

Balancing the North-South Divide will Solve Housing Crisis

Over the same period, asking prices in the North West decreased by 5.72% and by 4.56% in Yorkshire and the Humber.

These figures contrast dramatically with the housing boom in London and the south of England.

In the past seven years, asking prices in the capital soared by 44.9% and by 24.71% in the South East.

Osborne vowed to back a northern powerhouse, by boosting infrastructure, employment and the building sector.

However, his latest Budget revealed further welfare cuts, including a reduction in working tax credits.

Director of Home, Doug Shephard, comments: “It seems an appalling injustice that post-crisis economic measures have effectively meant austerity for the north and stimulus for the south and London. The north-south divide has been greatly exacerbated in recent years.

“There is no housing crisis in the north and there would not be in the south if workers weren’t forced to up sticks and move south to earn a living.”1

Asking prices in the East of England rose by 14.98%, by 9.82% in the South West, 6.72% in the East Midlands and 3.05% in the West Midlands between July 2008 and July 2015.

Meanwhile, Scotland and Wales experienced declines, of 4.56% and 5.72% respectively, over the last seven years.

The full index can be found here: http://www.home.co.uk/asking_price_index/Mix-Adj_Methodology.pdf

1 http://www.propertyindustryeye.com/15115/

Students at Top Universities Pay Higher Rents

Published On: August 17, 2015 at 11:54 am

Author:

Categories: Landlord News

Tags: ,,,,

Those studying at the country’s top universities are paying some of the highest rents, according to a new study.

Accommodation for Students revealed that those attending Cambridge, Oxford, Imperial College London, London School of Economics, Exeter and the University of Surrey pay between £20-£58 more in rent every week than the national average.

The research indicates that the student rental market has remained stable in most parts, with a slight increase in rents of £1.43 in the past 12 months. The average student rent is now £82.09 per week.

Students at Top Universities Pay Higher Rents

Students at Top Universities Pay Higher Rents

The only top ten university (according to The Complete University Guide 2016) where students pay less than the national average is Lancaster University at £78 a week.

Similarly to the overall rental market, there is still a wide north-south divide, with students in the north of England paying around £15 less than those in the south.

Those studying in Wales pay an average of £69 a week and Scottish students typically pay just £4 more.

The most expensive average student rents are in London at £140, Cambridge at £124, Kingston at £115 and Aberdeen at £109.

Students in Bolton, Middlesbrough and Wolverhampton pay an average of £62 per week, but the cheapest student accommodation is found in Walsall and Stockton at £48 and £49 respectively.

The greatest rises in student rents were experienced in Luton, Bangor and Derby, increasing at an average of 20% over the year.

Simon Thompson, Director at Accommodation for Students, says: “It’s great to see that the overall market has remained stable over the last year. This is positive for both investor landlords and students.

“Unsurprisingly, the north-south divide in rent values remains apparent, just as in the private rented sector.

“Naturally, rental increases in some areas will be governed by student demand, often determined by what courses are available, but it is interesting to see that there appears to be some correlation between the highest ranked universities and cost of student accommodation.

“Bill-inclusive rental options are increasingly prevalent, which shows landlords are reacting to student needs.

“Anything which helps students to manage their finances is appealing and I think this trend will continue to grow over the next few years as the cost of attending university creeps up.”1

1 http://www.propertyindustryeye.com/higher-rents-for-students-at-top-universities/

Flat fees to become norm in online letting industry

Published On: August 17, 2015 at 11:51 am

Author:

Categories: Landlord News

Tags: ,,

A number of online letting and sales agents are offering flat fees to their customers. Now, the head of a leading online agent has suggested that these type of fees will soon become the norm.

Rob Ellice, head of easyProperty, who recently announced an expansion into the sales market, said in an interview that he believes the agency model will evolve, possibly within the next six months.

Rethink

‘As online agents become the new norm, we could see many of our competitors offer our flat fees to keep their customers, and a radical rethink from high street agents on their commission rates,’ commented Ellice. He feels that agents will, ‘shift towards a customised experience,’ with technological innovations, ‘creating the impetus for more transparent and efficient ways of letting and selling a property, enabling customers to tailor their approach and take control of the process.’[1]

Flat fees to become norm in online letting industry

Flat fees to become norm in online letting industry

Undoubtedly, the market will change in the long term, with greater technological advances changing its face in the next decade, Ellice noted. He went on to suggest that innovations in the way people view and sell a property will also change. Concluding, Ellice said he is convinced that any agent looking to enter the current market will not consider a high-street office as a priority. Instead, he feels that most are now looking to set up online as a first move.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/8/flat-fees-will-be-industry-norm-says-online-lettings-chief

 

 

easyProperty Sales Sector Has Just One Home to Sell

Published On: August 17, 2015 at 10:55 am

Author:

Categories: Landlord News

Tags: ,,

Online agent easyProperty recently launched a sales sector, but has just one home listed for sale.

Despite offering the first 200 instructions fee free, as of yesterday, Rightmove had just one property for sale through easyProperty – a £1m, two-bedroom flat in London.

As it’s early days, it is not yet clear to see how successful the new division will be, but the company has sales packages ranging from £475 to £1,500 and has 327 rental properties listed on Rightmove.

Landlords struggling to obtain BTL finance

Published On: August 17, 2015 at 10:37 am

Author:

Categories: Landlord News

Tags: ,,

A new investigation suggests that a lack of buy-to-let finance is proving a stumbling block to more than 10% of UK landlords. This comes despite the fact there are over 900 buy-to-let mortgages available on the current market.

The survey conducted by online agent Property Let By Us shows that the inability to get finance is preventing many landlords from expanding their portfolios.

Difficulty

Data from the report indicates that one in ten landlords had difficulty in securing a buy-to-let mortgage over the last year. However, 82% of landlords have had success in obtaining a mortgage over the same period.

Alarmingly, the survey suggests that nearly 80% of landlords have reported rent arrears, with nearly a quarter serving an eviction notice, with 7% of disputes ending up in court. More positively, void periods have decreased as demand continues to accelerate.[1]

‘While the booming buy to let market looks like good news for landlords, the real picture is not so rosy,’ observed Jane Morris, Managing Director of Property Let By Us. ‘Spiralling rents are great news for yields, but the down side is that it brings with it a higher risk of rent arrears,’ she continued.[1]

Morris went on to say that, ‘securing finance also looks like it is going to get tougher for landlords. A new high street crackdown now means landlords will need a bigger deposit and face tighter checks for a buy to let loan. High street lenders are introducing strict criteria in a crackdown on the buy to let boom, which is feared to be pushing up house prices across the UK.’[1]

Landlords struggling to obtain BTL finance

Landlords struggling to obtain BTL finance

Falls

In addition, Morris feels that, ‘the amount landlords will be able to borrow is expected to fall by thousands and they are likely to face new tough lending criteria to secure a buy to let loan. Landlords must also prove that they are not wholly reliant on their rental income and that they will also be able to cope with void periods and any repairs to the property.’[1]

Many lenders are introducing new affordability checks, which see landlords having to answer tough questions on how much they spend on household bills and features such as childcare, before they get a loan. Some lenders also refuse loans to people dependent solely on a rental income, with some expecting applicants to have an income of at least £25,000 a year from other sources.

Concluding, Morris said that, ‘landlords need to thoroughly research lenders and ensure they meet the lending criteria before applying for a mortgage.’[1]

[1] http://www.propertywire.com/news/europe/uk-buy-let-finance-2015081710869.html