I’m thinking of buying some land with a view to building on it. Do you have any general advice?

The best piece of advice I can give you is simply this: think very carefully about what you’re considering taking on! Of course, for many people, building their own property is the ultimate dream, and can be uniquely satisfying. It can even be relatively cost-effective. Nevertheless, the potential headaches and pitfalls are almost too numerous to mention. We’ve all seen those TV programmes! Obviously, you can employ an architect and project manager to handle the whole thing on your behalf, but this can be pretty expensive. Alternatively, you may like to make enquiries locally to see if there are any other people who might be interested in forming a self-build group. At least this will mean you're not tackling things all on your own – which is the only other choice. In fact, this is not necessarily a problem, but dealing with planning and building control departments, builders, suppliers, public utilities and all the rest can all too easily turn into a real-life nightmare. But be that as it may…if you really are one of those relatively rare people who thrive on this sort of challenge, then obviously your first step is to track down a suitable piece of land. That in itself is no easy task. After all, we live in a fairly small, crowded island. Obviously, if you’re not particularly fussed where you live, then this will be less of a problem. But that’s not true for most of us. Some estate agents – although by no means all – do deal in land. Alternatively, there are a number of websites these days that specialise in this area. Nevertheless, you need to bear in mind that buying land without planning permission can be a huge gamble – while conversely, land which already has planning permission is obviously going to be a lot more expensive. Believe me, I’m not trying to put you off. After all, it’s only a year or so ago that the Housing Minister himself was singing the praises of self-build, and launching a new initiative to encourage it. But then again, precious little has been heard of that initiative since – and of course, we now have a different Housing Minister…

How much difference will last week’s Budget make to the housing market?

In practice it’s much too soon to tell. Nevertheless, opinion does seem to be pretty sharply divided. Much was made of the new Help to Buy scheme. This comprises two elements. The first is a new shared equity scheme, starting next month, and designed to help people buy new-build homes up to a price ceiling of £600,000. Essentially a revamp of previous schemes, it means that someone with a 5% deposit will be eligible for a Government loan of a further 20% - effectively making it possible to buy a new home with a 75% mortgage. This has of course been welcomed by the house-building fraternity. However, previous schemes have proved fairly ineffectual. The second and more significant element is a new £130-bllion mortgage indemnity scheme, whereby the Government will effectively stand as guarantor for people taking out up to 95% mortgages to buy any property, old or new – again up to a price ceiling of £600,000. The aim is to stimulate the housing market as a whole – particularly, for example, helping those so-called “second-steppers” who want to move up to the next rung on the property ladder, perhaps in order to accommodate a growing family, but who are currently constrained from doing so by lack of savings or even negative equity. A good idea? In theory, yes. However, serious questions are already being raised. For one thing, the scheme isn’t due to start till next January – so what’s going to happen in the meantime? Why would anyone struggle to buy now, if in a year’s time they can do so with a nice comfy taxpayer-backed mortgage? On the other hand, why would lenders run the risk of offering any high loan-to-value mortgages between now and next year, when the guarantee scheme kicks in? Some in the industry therefore see this as potentially sending the market into hibernation for the next 9 months. But in any case, should the Government be involving itself (and all of us) in artificially supporting the market in such a way? I’m not so sure. Could the Chancellor have done anything different? Certainly – he could have announced a root-and-branch reform of the Stamp Duty regime. Now that really would have helped stimulate the market. But of course, it would also have hit the Government right where it hurts most, in the wallet!

I called in to see my agent this week and found a member of staff removing the Office of Fair Trading logo from the shop window. What’s going on?

What has happened is this. In common with similar bodies in other industries, The Property Ombudsman scheme - which provides both sellers and buyers with access to a free, fair, and independent complaints arbitration service - operates a Code of Conduct which up to now has been officially approved by the OFT. This gave agents like yours, who have signed up to the code, the right to use the 'OFT Approved' logo. Now, however, for reasons best known to the powers that be, it has been decided that the OFT will cease its Consumer Codes Approval Scheme from 31st March. As a result, the right to display the logo is being withdrawn from that date. Your agent is simply being particularly conscientious in removing it well in advance. From April 1st (yes, I know what you’re thinking!) responsibility for approving such codes of conduct will pass to the Trading Standards Institute. Again, don’t ask me why. But in any case, the TSI hasn’t yet got around to deciding how the new system is actually going to work – let alone devising an appropriate logo for it! In view of this, you might expect the TSI to give agents who are signed up to The Property Ombudsman’s code of conduct a reasonable period of grace before the old OFT-approved logo must be removed. Not a bit of it! Instead, the TSI is insisting that all trace of the old logo – not to mention any reference to the OFT on stationery or other printed documentation – must be completely eradicated by the April 1st deadline. The result: agents up and down the country will be forced to remove the OFT logo without being able to replace it with anything else – thereby not only incurring the expense of having to reprint all their documentation at least once this year, but also causing entirely avoidable concern to customers like yourself! Of course, from the public’s perspective, the only thing that really matters is whether all this means any diminution in the degree of protection that The Property Ombudsman offers? And fortunately, the answer here is a resounding No!

If my offer on a property is accepted, shouldn’t the agent concerned take it off the market?

Some estate agents will specifically request their clients’ instructions on this matter. In most cases, however, the tacit assumption is made that once an offer has been accepted, active marketing should cease – although this does not absolve agents of their legal obligation to continue passing on any unsolicited offers which they may subsequently receive, unless specifically instructed not to do so. That said, the fact remains that a seller is perfectly within his rights to require marketing to continue right up to exchange of contracts. Indeed, some types of seller – for example, corporate clients, or lenders looking to dispose of repossessed properties – routinely do so. And even if a property has been removed from the market, there is nothing to stop a seller changing his mind at a later date. Much is made by consumer groups of the apparent unfairness of this situation. However, it’s worth pointing out that buyers are equally free to change their minds – and frequently do. That is the nature of our system. Nothing is legally binding on either party until exchange. What is the role of the estate agent in all this? Well, ultimately, of course, we are employed by the seller. We are – literally – his agent in the transaction. Nevertheless, only very rarely might we advise a client to continue marketing his property once a firm offer has been accepted – and then only if we start to have grave doubts about the current buyer’s ability to proceed. Why? Well, primarily because we would be legally obliged to inform the latter of the fact, in writing – and therefore risk losing him altogether. The old saying about a bird in the hand has rarely been as relevant as it is in the current climate! From time to time it has been suggested that England and Wales should adopt a similar system to that employed in other countries, where an offer becomes legally binding on both parties as soon as it is agreed. That would certainly address this particular issue once and for all. But then again, is it really so unreasonable that both parties to such a significant transaction should have adequate time to reflect and even reconsider, before committing themselves irrevocably? I’m not sure it is.

Q. We are looking to buy. What general advice would you give regarding making offers?

A. There are few hard and fast rules when it comes to making offers. However, it is advisable to do some research first, to see what similar properties in the area may recently have sold for. These days, there are a number of websites like www.myhouseprice.com and www.ourproperty.co.uk which can provide this kind of information, although it’s important to remember that they get their data from HM Land Registry, so it’s basically 3 months out of date. Always bear in mind that whatever offer you make, you may be outbid - even in the current market. Remember, the agent is legally bound to continue passing on any new offers to his client right up until exchange of contracts, unless instructed otherwise. So, even if and when your offer is accepted, that is by no means the end of it. By all means, offer less than the asking price – indeed, it’s practically expected! But don’t be tempted to start off with a ridiculously low offer, on the offchance that you strike lucky – even if you’re prepared to go higher later. Very occasionally, this may pay dividends – if, for example, the seller is in particularly dire straights. But generally speaking it is a very high-risk strategy. After all, if the seller’s agent has done his job properly in the first place, then the asking price should already be pretty much spot on. Besides, if the vendor thinks that your initial offer was insultingly low, then he may simply refuse to sell to you at all, no matter how high you are subsequently prepared to go. After all, no-one likes being taken for a fool – so much so, in fact, that there are plenty of cases of vendors who were even prepared to accept a slightly lower final offer from someone else, rather than end up selling to the person who tried to pull a fast one in the first place! So, my advice is simple – if you really, really like a property, don’t play around. Give it your best shot right from the start. One final word. Resist the temptation to make offers on several different properties at the same time. Admittedly, this is normally only something that happens in a sellers’ market. Still, you wouldn’t want anyone doing it to you!