Posts with tag: estate agents

Complaints Against High Street Estate Agents Soar by 32%

Published On: October 6, 2016 at 8:33 am

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Complaints upheld against high street estate agents have soared by 32% in the past year, according to the latest report from The Property Ombudsman (TPO).

Almost all of the complaints were resolved in favour of the complainant, resulting in record payouts for the consumer – the largest of which was over £16,000 for a lettings dispute.

Complaints Against High Street Estate Agents Soar by 32%

Complaints Against High Street Estate Agents Soar by 32%

The Ombudsman, Katrine Sporle, warns high street estate agents of the importance of a good reputation.

She says: “Overall, this is good news for consumers and redress, but not so great for the reputation of agents, who collectively paid out over £800,000 in awards. My message for those agents is simple: Pay more attention to TPO’s Codes of Practice and raise your standards.”

Last week, TPO announced that it is updating its Codes of Practice for all those in the property industry: /property-ombudsman-updates-codes-practice/

However, the report does indicate that online and hybrid estate agents continue to wage war against their high street counterparts, with many, but not all, excelling in the customer service they provide.

One of the leading online agents in the sector, eMoov.co.uk, was voted the best in the country out of over 25,000 high street and online estate agents, based on the service it provides to customers.

The Founder and CEO of eMoov, Russell Quirk, says: “It’s almost becoming an estate agency tradition that every year, TPO releases its report on the industry, and every year, the poor practices of the high street sector in particular result in an increase in complaints on the previous year.

“The high street sector is struggling in the current industry environment to say the least, and, despite being squeezed for market share by online and hybrid agents, are only getting worse, rather than pivoting with the new age of estate agency and offering a better customer experience for a fairer price.”

He continues: “Luckily, the customer now has the choice and, thanks to websites such as TrustPilot and AllAgents, can separate the good from the bad, based on reviews from real customers. That’s why at eMoov, we concentrate on how we treat the customer, not the money we gain, and our TrustPilot rating of 9.5 and our rank as number one agent out of 25,800 via AllAgents is a testament to that.

“Despite this positive evolution in the industry, selling or buying a home can occasionally be an expensive and sometimes fraught experience. The Government must now really step in and introduce licensing for all estate agents, in order to regulate against the bad guys, of which there seems to be many.”

If you’re buying or selling a property, does this news put you off using a high street estate agent?

The Property Ombudsman Updates Codes of Practice

Published On: September 28, 2016 at 8:29 am

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On 1st October 2016, The Property Ombudsman (TPO) scheme will issue updated versions of its Codes of Practice, in order to address emerging industry issues.

Primarily, TPO aims to eradicate the practice of portal juggling – when an agent misleads customers by removing and relisting homes on property portals, enabling them to hide price cuts and give the impression that a property is new to the market when it is not.

The Property Ombudsman Updates Codes of Practice

The Property Ombudsman Updates Codes of Practice

Other updates include:

  • Disclosure on pre-contract deposits – to clearly define the actions required to ensure all parties involved in a pre-contract deposit arrangement have agreed to the terms and conditions attached to the payment.
  • VAT on fees – to ensure that all fees and charges are quoted inclusive of VAT.
  • Disclosure of referencing – to add the provision that landlords receive all relevant facts, regardless of whether the tenant has met or failed to meet the referencing criteria.

The Chairman of TPO Board, Gerry Fitzjohn, explains: “The decision was taken to carry out a full review of the codes to reflect market developments and provide clear definitions of unfair practices. Our codes already state that all advertisements must be legal, decent, honest and truthful, but now go one step further to clarify that portal juggling, in its various forms, is misleading to consumers. Evidence of member agents found to be carrying out such poor practice could be reported to the Disciplinary and Standard’s Committee (DSC), NTSEAT and/or local Trading Standards.

“As the industry changes, it’s necessary to release new versions of our codes to ensure agents fully understand their responsibilities and adhere to best practice.”

The Ombudsman, Katrine Sporle, will apply the new Codes of Practice when reviewing consumer complaints regarding events that have occurred after 1st October 2016, to determine whether or not a TPO-registered member has breached the high level of standards required.

Issues included in the new codes will be covered in greater depth at TPO’s annual Raising Standards Conference on 12th October 2016 at the National Conference Centre, Solihull.

The working group for the updated codes included trade associations, representatives from large and small estate and letting agents, and a representative from TPO’s independent council.

All TPO Codes of Practice have been revised, including: Residential Estate Agents, Residential Letting Agents, Residential Estate Agents (Scotland), Residential Letting Agents (Scotland), Buying Agents, Property Buying Companies, Commercial and Membership Obligations.

The CEO of the HomeOwners Alliance, Paula Higgins, comments on the changes: “Buying a house is the biggest purchase of your life, and you need to know the information you have is accurate when deciding whether to view and, more importantly, how to decide and negotiate the price. Without accurate information, homebuyers are at a big disadvantage and estate agents and their clients, the home seller, are the winners. This isn’t a level playing field. We’re glad to see the regulator stepping in.”

The Property Redress Scheme Signs Up its 5,000th Member

Published On: August 17, 2016 at 8:57 am

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Less than two years since the Property Redress Scheme (PRS) began, the organisation is celebrating signing up its 5,000th member.

The Government-authorised scheme was the newest of three available consumer redress schemes for the property market when it launched in the summer of 2014.

The Property Redress Scheme Signs Up its 5,000th Member

The Property Redress Scheme Signs Up its 5,000th Member

It is a legal requirement for all letting and estate agents to be a member of a redress scheme, but the PRS also accepts other property professionals. Recent new members include the Association of Independent Inventory Clerks (AIIC) and VeriSmart, a smart inventory provider.

The London region has the most PRS members, with over 1,250 agents in the capital, followed by the South East counties of Kent, Surrey and Sussex, which have over 600 members. The Midlands and Yorkshire also account for over 1,000 PRS members.

Wales, Scotland and Northern Ireland have lower membership levels, but still make up over 100.

Anthony Hamilton Estate Agents Ltd in Basingstoke became the PRS’s 5,000th member, and was treated to a bottle of champagne to celebrate.

The agency’s owner, Mark Chubb, says: “What a nice treat to celebrate we’ve become the 5,000th member of the PRS. We will definitely drink a toast to the redress scheme.”

Tim Frome, the Managing Director of the PRS, comments: “We are delighted by this further testimony to our success. Our scheme is easy to join and offers straightforward advice for both property professionals and consumers. We’re just short of our second anniversary, and have enhanced our offering continuously since we first started.

“In fact, there are many advantages of choosing the PRS: Enhanced members now enjoy access to a 24/7 legal helpline, and we have started to provide workshops on essential industry topics across the country. We recently hosted a workshop in Cardiff on the new Rent Smart Wales legislation, which requires agents to have Professional Indemnity Insurance and Client Money Protection, aside of their redress scheme membership.”

Letting and estate agents must remember their legal obligation to join a redress scheme.

Landlords, always ensure that any agent you use is a member of a recognised redress scheme.

Estate agents concerned on Brexit impact

Published On: July 8, 2016 at 8:46 am

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A new survey has revealed that 42% of UK estate agents feel the decision to leave the European Union has already had a detrimental impact on their business.

Further data from the report by software supplier Dezrez has revealed that one agency has recorded a 40% drop in valuations already.

Brexit falls

One-third of respondents predict that there will be between 5%-20% fewer properties on the market as a result of the Brexit vote. In addition, homeowners could see the value of their properties fall between 5%-15%.

52% of estate agents queried feel that vendors or buyers will fall out of potential sales. On the other hand, 53% said that they had seen no impact to date, with 37% believing the vote result will not have a long term effect on their business.

Interestingly, only a few estate agents have fully prepared for the ‘leave’ vote. 54% feel it is too early to devise a strategy. 16% said they had a plan, with 13% saying they are currently working on one.

Caution

Chief Executive of Dezrez, Justin Morris, observed, ‘as the economic landscape continues to shift following the UK’s vote to leave the European Union, the Bank of England Governor Mark Carney has warned prospective buyers to proceed carefully if planning to borrow money.’[1]

‘This warning and the ongoing analysis from property professionals, is unsurprising. However, until the market settles, we won’t know the exact extent the effect Brexit will have on the residential property market. What is clear is that in the short term uncertainty will lead to a dip in market confidence,’ Morris continued.[1]

Estate agents concerned on Brexit impact

Estate agents concerned on Brexit impact

Savvy success

Morris went on to note that while opportunistic buyers could look to negotiate a bargain, savvy buyers will look at the economic effect on their finances. Many estate agents feel there are still more buyers than sellers in the market. With a reduction in housing stock likely, the market could move to even out.

Concluding, Morris said, ‘the role of the estate agent will be increasingly important to vendors and buyers alike. Negotiations may become trickier and sales progression more complex, consumers will rely heavily on traditional estate agents for their experience and advice. There is no doubt that there are challenges and opportunities ahead.’[1]

[1] http://www.propertywire.com/news/europe/uk-estate-agents-brexit-2016070712117.html

Estate agents told to be bold following Brexit

Published On: June 30, 2016 at 11:38 am

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The managing director of the oldest estate agent recruitment consultancy in the UK has told employers to hold their nerve after Britain voted to leave the EU.

Anthony Hesse’s, MD of Property Personnel, made the comments following a survey of recruitment intentions carried out by the Chartered Institute of Personnel and Development.

This survey suggested that 48% of members believe it is far too early to tell what impact a Brexit would have on the sector.

Historic decision

Mr Hesse said, ‘after a historic decision like this, hasty knee-jerk responses are the last thing the industry needs. It’s important that UK estate agents don’t feel bounced into taking decisions with long-term impacts they may live to regret.’[1]

‘Brexit is more of a process than an event – so the immediate impact will be limited, because any major changes will take some time. As a result, employers need to hold their nerve and consider any next steps carefully,’ Hesse continued.[1]

Estate agents told to be bold following Brexit

Estate agents told to be bold following Brexit

Plans

Hesse indicated that he was more concerned at further results from the survey that show 54% of members have no post-Brexit plan in place. 26% respondents said that they were actively developing one.

‘Issues such as employment law, immigration and the ability of employers to bring the right skills they need into their business were central themes of the EU referendum campaigns-so estate agents need to plan accordingly, Hesse explained. It’s important to remember that our existing labour market already strikes a good balance between providing flexibility for employers and employment rights for workers. Currently, employers can bring in skilled workers from outside the UK to help support business growth and address labour shortages. It’s absolutely crucial that any renegotiation of our relationship with the EU takes this into account.’[1]

Concluding, Hesse noted that, ‘ultimately, we need to ensure that UK estate agents continue to recruit the best people to fill the jobs available. Access to the right talent is absolutely vital to ensure sustainable growth and prosperity-not only for the sector, but the country.’[1]

[1] http://www.propertyreporter.co.uk/property/estate-agents-urged-to-hold-their-nerve-post-brexit.html

Demand for UK property at lowest for 3 years

Published On: June 30, 2016 at 10:57 am

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The uncertainty surrounding the EU referendum result caused demand for new property to slip to the lowest levels seen for over three years.

Research from the National Association of Estate Agents shows that the number of property sales agreed in the last month fell sharply.

Demand falls

There were an average of 304 house hunters registered per member branch during May, down 6% from April and the lowest levels seen since November 2013.

In addition, the statistics show that in comparison to May 2015, demand has fallen by 21% year-on-year.

Similarly to demand, the supply of properties available to buyers rose marginally from 35 properties to buy per branch in April to 37 in May.

During the last month, 41% of agents suggested that house prices would fall. 30% said that demand would decrease as a result of the referendum result.

Uncertainty

Despite the number of house hunters per branch falling in the last month, the number of sales to first-time buyers increased, albeit marginally.

Mark Hayward, director of the National Association of Estate Agents, said, ‘the EU referendum, without doubt meant that May was a month of uncertainty for potential house buyers and demand dropped significantly and is currently at the lowest level we have seen in the last three years.’[1]

‘As a result of the vote for a Brexit, we expect international investors to look a lot harder at the UK as a potential market to buy in and this will have a knock-on effect on the house building sector, as investments may be delayed or put off completely,’ he continued.[1]

Demand for UK property at lowest for 3 years

Demand for UK property at lowest for 3 years

Short term stability

Hayward appreciates, ‘in the short term, we believe that house prices will remain stable, we cannot be certain about the next quarter as political uncertainty and market unrest could affect the housing market.’[1]

However, he continued by saying, ‘as we continue to say, there are simply not a sufficient number of houses available in this country to cater for everyone’s needs and a Brexit could impact the skills required to drive property developments in the UK. This means that in the longer term, something will need to give which regrettably could mean a surge in house prices or buyers struggling to find a suitable property in order to move or get that first foot on the ladder.’[1]

[1] http://www.propertywire.com/news/europe/uk-residential-property-demand-2016062912085.html