According to the announcement made jointly last week by Eric Pickles, the new Secretary of State for Communities and Local Government, and Housing Minister Grant Shapps, compulsory HIPs are now a thing of the past. Or, to be more exact, they have been suspended with immediate effect, pending the introduction in due course of new legislation to abolish them altogether.
So no more having to fork out hundreds of pounds upfront for a HIP. No more having to wait for anything up to 5 working days for the thing to be compiled before your agent can start marketing your home.
You will still have to have an Energy Performance Certificate, or EPC, since these are a requirement of EU law for both sales and rental properties. Provided you have proof that one has been commissioned your agent can go ahead and market your home straight away.
So ends arguably one of the most ill-conceived and poorly-executed episodes in the history of the housing market. And yet things might have been very different. After all, most people both inside and outside the property industry agree that some reform of the buying and selling process is badly needed in order to make the whole thing quicker, more transparent and more certain. Next time, however, let’s hope that the Government thinks things through rather better, and takes a little more notice of the opinions of those who actually know what they’re talking about!
Meanwhile is, of course, impossible to tell for sure how much of a dampening effect HIPs had on the property market during their brief existence,over and above the wider effects of the credit crunch. Nevertheless, by doing away with all the extra cost and hassle at a stroke, this Government’s prompt action should definitely help put the current property recovery on a sounder footing. And that has got to be good news for everyone.
For further information on selling a property go to www.trustintudor.co.uk
Monday 24 May 2010
Monday 17 May 2010
Tudor property market up date .. What effect will coalition Goverment have on the property market ?
Basically, everything depends on sentiment; on confidence, or the lack of it. And, as far as the broader economic situation is concerned, this is - as always - very much in the lap of the gods (although unfortunately, they happen to be Greek gods on this occasion…) Nevertheless, the initial reaction by the financial markets to the election of Britain’s first coalition Government since the last war has been broadly positive.
In the longer run, what will matter most is the way the new Government tackles the enormous public sector deficit. And here too they seem to be making the right noises. Mervyn King, Governor of the Bank of England, and the man ultimately responsible for setting interest rates, has already voiced his general approval of the plans that have so far been announced, although everyone concedes that there is a lot more to do.
As for those issues more specifically related to the housing market, such as the future of Home Information Packs and reform of the Stamp Duty regime, neither appears to be considered important enough to be slated for early implementation. Interestingly, at the time of writing, the former shadow housing spokesman, Grant Shapps, has just been confirmed in the role of Housing Minister. However – unlike his numerous Labour predecessors – he will not have a seat in the Cabinet.
Nevertheless, when all’s said and done, the fact remains that the UK property market has proved itself pretty resilient up to now, in the face of what was widely regarded as the worse recession since the 1930's. Only 18 months ago, there were predictions that prices could decline by anything up to 30% from their 2007 peak, whereas in fact they are currently rising at 10% year on year, and are already nearly back to where they were at their height.
In Britain, the property market has its own built-in dynamic, with death, divorce, and growing and contracting family sizes all having an impact. It’s not just about economics. Nor is a little thing like a coalition Government likely to have any impact on the long-term stability of the market. Just ask all the wealthy Greeks who are apparently flocking to London to buy property in order to safeguard their money
In the longer run, what will matter most is the way the new Government tackles the enormous public sector deficit. And here too they seem to be making the right noises. Mervyn King, Governor of the Bank of England, and the man ultimately responsible for setting interest rates, has already voiced his general approval of the plans that have so far been announced, although everyone concedes that there is a lot more to do.
As for those issues more specifically related to the housing market, such as the future of Home Information Packs and reform of the Stamp Duty regime, neither appears to be considered important enough to be slated for early implementation. Interestingly, at the time of writing, the former shadow housing spokesman, Grant Shapps, has just been confirmed in the role of Housing Minister. However – unlike his numerous Labour predecessors – he will not have a seat in the Cabinet.
Nevertheless, when all’s said and done, the fact remains that the UK property market has proved itself pretty resilient up to now, in the face of what was widely regarded as the worse recession since the 1930's. Only 18 months ago, there were predictions that prices could decline by anything up to 30% from their 2007 peak, whereas in fact they are currently rising at 10% year on year, and are already nearly back to where they were at their height.
In Britain, the property market has its own built-in dynamic, with death, divorce, and growing and contracting family sizes all having an impact. It’s not just about economics. Nor is a little thing like a coalition Government likely to have any impact on the long-term stability of the market. Just ask all the wealthy Greeks who are apparently flocking to London to buy property in order to safeguard their money
Monday 10 May 2010
Is it really worth paying extra for a survey on top of the building society’s own valuation?
I would always advise anyone contemplating buying a property to commission their own survey. Why? Well, primarily because buying a home is the single biggest investment most of us ever make – so surely it’s just common sense to want to be reassured that everything is OK before we commit ourselves. Otherwise, there’s always the risk of encountering some nasty and probably expensive surprises, when it’s too late.
But isn’t that the job of the lender’s valuation? Well, no it isn’t. Remember, this is not a survey. Its sole purpose is to satisfy the lender that the property in question represents sufficient security for the loan. You may not even be given a copy of it.
So, the only way you as a buyer can be truly confident about the investment you are making is to commission your own survey. And in all but a relatively few cases where a full building survey may be more appropriate – for example, where a property is very old, or requires major structural repairs or alterations – the new-style RICS HomeBuyers Report should be perfectly adequate.
In its new guise, which was introduced on 1st April this year, the Homebuyer’s Report has been substantially redesigned in order to provide more information in a clearer, more easily-understood format. Together with a full description of the property, when it was built, the type of construction, and confirmation of the details contained in the Energy Performance Certificate, the new reports use a simple “traffic light” system to rate the condition of various key elements of the property. So, green means that no repairs are currently needed, yellow signifies that non-urgent defects have been identified, and a red indicates the presence of serious defects which need to be addressed, or issues that require further investigation, as a matter of urgency.
As far as price is concerned, this varies - depending on factors like the size, age and value of the property in question. Nevertheless, a typical mid-range report should probably cost in the region of £350-£500. In view of the peace of mind that such a report represents, this is a small price to pay!
For more information on buying, selling or renting a property go to
www.tudorestates.co.uk
But isn’t that the job of the lender’s valuation? Well, no it isn’t. Remember, this is not a survey. Its sole purpose is to satisfy the lender that the property in question represents sufficient security for the loan. You may not even be given a copy of it.
So, the only way you as a buyer can be truly confident about the investment you are making is to commission your own survey. And in all but a relatively few cases where a full building survey may be more appropriate – for example, where a property is very old, or requires major structural repairs or alterations – the new-style RICS HomeBuyers Report should be perfectly adequate.
In its new guise, which was introduced on 1st April this year, the Homebuyer’s Report has been substantially redesigned in order to provide more information in a clearer, more easily-understood format. Together with a full description of the property, when it was built, the type of construction, and confirmation of the details contained in the Energy Performance Certificate, the new reports use a simple “traffic light” system to rate the condition of various key elements of the property. So, green means that no repairs are currently needed, yellow signifies that non-urgent defects have been identified, and a red indicates the presence of serious defects which need to be addressed, or issues that require further investigation, as a matter of urgency.
As far as price is concerned, this varies - depending on factors like the size, age and value of the property in question. Nevertheless, a typical mid-range report should probably cost in the region of £350-£500. In view of the peace of mind that such a report represents, this is a small price to pay!
For more information on buying, selling or renting a property go to
www.tudorestates.co.uk
Tuesday 4 May 2010
Lab, Lib, Con what would they do about housing ?
The general election and the housing market
With the Election fast approaching, it's interesting to consider how the property market could be affected. Many have argued that housing policy should not simply be a footnote during the forthcoming General Election. The property industry is of profound importance to the UK economy, and it's vital to remember how much a healthy housing market is worth to the economy as a whole.
What are the main political parties proposing for the housing sector?
Labour
• Two year Stamp Duty holiday for First Time Buyers on residential transactions up to £250,000
• From April 2011 a new Stamp Duty top rate of 5% for properties over £1 million
• An extra £1.5 billion of funding brought forward to help build 110,000 new affordable homes
• Agreements with banks to lend £105 billion to homeowners over the next year
• Pressure on lenders to stave off the threat of repossessions
• New homes to be zero carbon by 2016
Conservative
• Permanently increase the Stamp Duty threshold for First Time Buyers
• Abolish Home Information Packs
• Reward councils for building more homes and promoting local economic growth
• Making it easier for social tenants to own or part-own their home
Liberal Democrats
• Good, simple and cheap homes to rent for those unable to buy
• Action on repossessions so that banks explore other options
• Creation of "Safe Smart" mortgages that protect buyers from negative equity
• Warmer and energy efficient homes throughout the UK
House price increased in March according to the Nationwide
The latest house price index from the Nationwide Building Society has revealed a 0.7% rise for the month of March compared with February.
The latest house price rise takes the annual increase to 9% with the average UK home costing £164,519.
Meanwhile, the Nationwide said prices rose by 1.6% in the three months to the end of March, compared with a 1.8% increase in the previous three months.
Martin Gahbauer, the Nationwide’s chief economist, comments: “The last two months are consistent with a relatively flat profile for house prices, and in line with the recent drops seen in buyer enquiries and house sales.”
He added: “Preliminary figures show that the number of loans taken out for house purchases failed to recover from January’s large dip, suggesting that weakness in house sales at the start of the year may have been due to more than just the snowy weather.”
Southend housing market activity
Sales
March saw a steady increase in the amount of new property coming onto the market which has continued into April. This has resulted in more choice for would be purchasers and as a consequence they have been taking longer to decide which properties to offer on. Recently this trend has seemed to have worked through the system with far more offers being received within the last week.
Mortgage criteria still is a major issue with clients being turned down for the smallest of reasons, such as late payment of bills, despite many having large deposits and requiring only 75 / 80 % loan to value. So while mortgages are more freely available those being able to take advantage of them are still relatively small.
Property prices are not following the national average with the average price showing virtually no change during the month. Many agents and sellers are still over valuing their properties in the hope they will attract that “special buyer” However this often results in either the property not selling or being withdrawn from the market. In some instances the property is reduced in price which gives the wrong signals to potential purchasers and can result in sellers being disappointed because they lose the property they want to buy.
Auctions
Interest in buying at auction remains strong especially in land with or without planning permission and rental portfolio’s with tenants in situ. Prices have been very buoyant but it requires sellers with a strong nerve as it is essential that a “come and get me” guide price and reserve is placed on the property or land so it attracts the serious investor into sales room.
Rental
There is continued strong demand from good quality tenants for all types of well presented properties. Vacancy levels are low with the average time to let a property being 4 days. Those tenants that are leaving are either renting larger properties or returning to live at home with parents while they save for a deposit to buy.
For further information on the property market log onto www.trustintudor.co.uk
or e mail alan@tudorestates.co.uk
With the Election fast approaching, it's interesting to consider how the property market could be affected. Many have argued that housing policy should not simply be a footnote during the forthcoming General Election. The property industry is of profound importance to the UK economy, and it's vital to remember how much a healthy housing market is worth to the economy as a whole.
What are the main political parties proposing for the housing sector?
Labour
• Two year Stamp Duty holiday for First Time Buyers on residential transactions up to £250,000
• From April 2011 a new Stamp Duty top rate of 5% for properties over £1 million
• An extra £1.5 billion of funding brought forward to help build 110,000 new affordable homes
• Agreements with banks to lend £105 billion to homeowners over the next year
• Pressure on lenders to stave off the threat of repossessions
• New homes to be zero carbon by 2016
Conservative
• Permanently increase the Stamp Duty threshold for First Time Buyers
• Abolish Home Information Packs
• Reward councils for building more homes and promoting local economic growth
• Making it easier for social tenants to own or part-own their home
Liberal Democrats
• Good, simple and cheap homes to rent for those unable to buy
• Action on repossessions so that banks explore other options
• Creation of "Safe Smart" mortgages that protect buyers from negative equity
• Warmer and energy efficient homes throughout the UK
House price increased in March according to the Nationwide
The latest house price index from the Nationwide Building Society has revealed a 0.7% rise for the month of March compared with February.
The latest house price rise takes the annual increase to 9% with the average UK home costing £164,519.
Meanwhile, the Nationwide said prices rose by 1.6% in the three months to the end of March, compared with a 1.8% increase in the previous three months.
Martin Gahbauer, the Nationwide’s chief economist, comments: “The last two months are consistent with a relatively flat profile for house prices, and in line with the recent drops seen in buyer enquiries and house sales.”
He added: “Preliminary figures show that the number of loans taken out for house purchases failed to recover from January’s large dip, suggesting that weakness in house sales at the start of the year may have been due to more than just the snowy weather.”
Southend housing market activity
Sales
March saw a steady increase in the amount of new property coming onto the market which has continued into April. This has resulted in more choice for would be purchasers and as a consequence they have been taking longer to decide which properties to offer on. Recently this trend has seemed to have worked through the system with far more offers being received within the last week.
Mortgage criteria still is a major issue with clients being turned down for the smallest of reasons, such as late payment of bills, despite many having large deposits and requiring only 75 / 80 % loan to value. So while mortgages are more freely available those being able to take advantage of them are still relatively small.
Property prices are not following the national average with the average price showing virtually no change during the month. Many agents and sellers are still over valuing their properties in the hope they will attract that “special buyer” However this often results in either the property not selling or being withdrawn from the market. In some instances the property is reduced in price which gives the wrong signals to potential purchasers and can result in sellers being disappointed because they lose the property they want to buy.
Auctions
Interest in buying at auction remains strong especially in land with or without planning permission and rental portfolio’s with tenants in situ. Prices have been very buoyant but it requires sellers with a strong nerve as it is essential that a “come and get me” guide price and reserve is placed on the property or land so it attracts the serious investor into sales room.
Rental
There is continued strong demand from good quality tenants for all types of well presented properties. Vacancy levels are low with the average time to let a property being 4 days. Those tenants that are leaving are either renting larger properties or returning to live at home with parents while they save for a deposit to buy.
For further information on the property market log onto www.trustintudor.co.uk
or e mail alan@tudorestates.co.uk
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