26/06/2007 by Damian.

Selecting the company to sell your biggest asset, your home, can appear a daunting process to the uninitiated.  Your choice can be made much simpler by following a few straightforward rules.

1) The first principle when searching for an estate agent is to check that they belong to a professional body like the NAEA.  This is because all members have to complete a minimum entry qualification on valuing properties and are bound by rules of conduct to offer you a fair deal, without overvaluing your home.  They also provide access to a complaints procedure and a solid understanding of the market.  Selecting an agent who is a member will ensure your peace of mind, as well as the highest level of integrity and service.
 
2) Reputation can also be a great aid in selecting an agent. If friends, family or neighbours have had a good experience with an agent this can really help.  Another trick is to look at the number of ‘sold’ and ‘for sale’ signs around the local area.  This will tell you which agents are most popular. 
3) Look for an estate agent who will answer telephone calls and emails quickly and post details of your property on their website within 24 hours.  They will also have a history in the area, with returning clients to prove the quality of their service.  A great estate agent will also bring a list of buyers with them, and will have a contingency plan in place in case it cannot find a buyer.
 
4) When you find a good agent, agree the top 5 selling points of your property and what kind of contract you sign.  Ask to see comparisons of valuations and actual sale prices in the area, and finally make sure you get on well with your chosen agent – this will be invaluable if your house sale is long and emotional!

25/06/2007 by Damian.

Homeowners trying to sell three bedroom houses may have to provide their buyer with a home information pack as early as September 1, it was claimed yesterday. The packs, which include legal searches and the controversial energy efficiency assessment, were originally due to be required by the sellers of all houses from June 1 but this has been delayed until 1st August - and it will only affect properties with 4 or more Bedrooms.Now it has been claimed that the industry could be ready to expand the scheme to cover smaller homes as early as August, although it is more likely to come into force in September. The industry will have enough trained energy assessors in place by August to allow the government to announce that the scheme will be expanded to include three-bed properties as early as 1st September.

In May the government was forced to admit it had only 500 trained energy assessors instead of the 2,000 it said were required to make Hips work. Despite repeated assurances to the contrary by both ministers, the scheme looked doomed to failure particularly when several large property firms said they were pulling out of Hips.

A Communities Department spokesman confirmed the roll out of the scheme was dependent on the number of assessors ready to begin work.

Keep checking our blog for more on this ever changing subject!

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Hips causes chaos in rental market

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25/06/2007 by Damian.

Two of the country’s biggest lenders have pull their fixed rate deals.

Halifax has today hiked the rate on its top two-year fix from 5.49 per cent to 5.79 per cent, while Abbey’s deal has broken the 6 per cent barrier, rising from 5.99 per cent to 6.19 per cent last week.

Louise Cuming, head of mortgages at Moneysupermarket.com, a comparison site, said: “Borrowers needing the stability of a fixed rate product should reserve their next deal now if their mortgage term is coming to an end. Fixed rates appear to be going up – and fast.”

Fixed rates have been going up because the City expects the Bank of England to raise rates by another quarter point to 5.75 per cent this summer – possibly at next week’s meeting – and some commentators think they could even hit 6 per cent before the year is out.

Interest rates have already gone up four times in the past ten months from 4.5 per cent to 5.5 per cent, adding £166 a month to a £200,000 interest-only mortgage.

More than 800,000 borrowers face a £1 billion ‘payment shock’ in the coming months when fixed rates they took out two years ago end.

In summer 2005 the best fix was at 4.15 per cent but now borrowers will struggle to find fixes below 5 per cent.

George Buckley, chief UK economist at Deutsche Bank, said: “Homebuyers are in for a shock when their deals come to an end. Two years ago fixed rates offered outstanding value and the number taken out ballooned. Fixes are now around 1.1 percentage points higher than they were then, and are likely to rise further still.”

“The sharp rise in payments faced by borrowers will almost certainly put downward pressure on house price inflation and could also slow consumer spending as households struggle to absorb the extra costs”.

Portman has a two-year fix at 5.29 per cent with a £1,499 fee. You must have a 5 per cent deposit. Meanwhile, Stroud & Swindon has a five-year deal at 5.59 per cent, while Newcastle has a ten-year scheme at just 5.5 per cent.

Cuming said: “Borrowers may not be aware they can reserve a mortgage at the current rate for up to six months.”

Posted in UK Interest rates | Print | 1 Comment »

24/06/2007 by Damian.

The government’s confusion over home information packs (Hips) has thrown the buy-to-let market into chaos in many parts of the country.Many of those who put their properties up for sale to beat the Hips deadline of 1 June, creating a glut of properties on the market, have now decided to put them up for rent instead. This has led to a sudden flood of thousands of properties coming on to the rental market in the past few weeks, leaving many landlords, already hit by higher interest rates, struggling to find tenants for their properties.

The rental market is the latest casualty of the government’s indecision over Hips, which would have required sellers to provide information about their properties before they could sell them. Agents and landlords are reporting thousands of properties suddenly becoming available to let, forcing them to slash rents to find tenants. Worst affected areas seem to be city centres in Birmingham, Leeds and Nottingham, where there was already an oversupply of executive apartments.

The property market remains confused as to whether Hips will be introduced at all, or in what form. The packs, which would have included title deeds, copies of planning approvals, local searches, guarantees for any work done and an energy performance certificate, were to be required for all properties sold from 1 June and were likely to cost sellers between £300 and £500. Estate agents had geared up for their implementation.

But just 10 days before they were due to be introduced, Communities and Local Government Secretary Ruth Kelly announced they would be delayed and said only properties of four or more bedrooms would need a Hip from the new start date of 1 August.

Realted Links

September start likely for Hips and three-bed homes

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23/06/2007 by damianbellusci.

Less2sell are proud to launch our new dedicated blog that will be keeping our readers updated on news, views and relevant topics related to the UK property market.

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