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UK Property Ombudsman calls for new Act to reflect developments in the sector
The UK’s Property Ombudsman has called for the introduction of a Property Agents Act as the current situation is not open or consistent enough. The call from Christopher Hammer, who is coming to the end of his nine year term as Ombudsman, believe the latest data shows that provisions do not go far enough in terms of disclosure for agents, tenants and landlords. The figures show that more than half of the 9,141 enquiries received related to lettings disputes, nearly double that of sales. Hammer says this reinforces the importance of legislation introduced a year ago, making it a legal requirements for all letting agents in England to register with an approved redress scheme. ‘A Property Agents Act would update the Estate Agents Act 1979 to reflect developments in the sales market and most relevantly now, bring lettings into a precise framework where all agent activity is covered by one piece of legislation,’ said Hammer. He has suggested licensing of agents, standardised tenancy agreements and compulsory client money protection could all be areas included in such an Act. The figures, published in The Property Ombudsman's 2015 Interim Report, reveal that membership levels have grown by 16% in the first half of the year. A total of 1,587 complaints, up 34% on the previous year, were resolved covering sales, lettings and other jurisdictions between 01 January and 30 June 2015. Some 3,641 additional sales and letting agents registered with TPO and a total of 34,944 agents registered with TPO across all jurisdictions, a 16% increase on the same period last year. Overall some 9,141 consumers contacted TPO regarding a property dispute, an 8% increase on the same period last year. More than half, 58%, of all the enquiries received were regarding lettings disputes with 5,303 enquiries logged, nearly double that of sales enquiries which represented 30%. Complaints grew by 34% overall with 1,587 cases reviewed, of which 934 were against letting agents, up 30%, and 596 were against sales agents, up 39%. Continue reading
UK asking price reaches all time high but growth is slowing
October has seen a new all time high for the price of property coming onto the market in the UK at £296,549, according to the latest index figures to be published. However the month on month rise of 0.6% was relatively modest for the time of year and it the lowest October increase since 2010, the data from Rightmove shows. Year on year prices are up 5.6% and the new record asking prices is being fuelled by high demand for first-time buyer properties, with prices in this sector up 4.9% on last month and 9.6% over the past 12 months, the firm’s report says. It also points to a ‘vicious circle’ as high tenant demand leads buy to let investors to go head to head with first time buyers and many letting agents report ‘same day’ rentals and little or no property to rent. At the same time the number of first time buyer properties, usually regarded as two bedrooms or fewer, coming to market is down by 8% on same period a year ago, exacerbated by first time sellers struggling with second step price gap. ‘There are signs of a slowing pace of price rises in some sectors of the market, with the overall October rise the lowest we’ve recorded at this time of year for five years. We still have another national average record however, as prices continue their upward trend,’ said Miles Shipside, Rightmove director and housing market analyst. ‘This is mainly being fuelled by the heady price rises of typical first time buyer homes. A near 10% price surge in this category in the last year proves that despite tighter lending criteria in last year’s Mortgage Market Review, some first time buyers can still afford the higher prices being asked for by sellers in this sector,’ he explained. ‘It’s also symptomatic of a shortage of properties coming to market with two bedrooms or fewer, combined with demand from both first-time buyers and landlords investing in reaction to the huge rental demand for smaller properties,’ he added. Letting agents report extraordinary demand from tenants in many parts of the country, with new or existing households looking to the rental sector to fulfil their need for quick and flexible housing arrangements. A growing number of people like the transience of renting, without the complications, commitments and costs of buying and then selling, the report says. With inadequate supply from housing associations and the public sector, private landlords are one of the few active providers of smaller homes for rent. However, when this need is combined with first time buyer demand, boosted by the return of low deposit mortgages and lenders competing to reduce their rates, it creates a vicious circle due to the limited supply of suitable properties for sale in this most active sector. ‘With local authorities, housing associations and developers no longer satisfying the country’s housing needs, those in particular looking to rent or buy smaller homes must hope for… Continue reading
Would be renters make their mind up in just 60 seconds
People renting a home in the UK take an average of 60 seconds to decide whether a property is right for them whilst viewing, according to new research. A nice kitchen is attractive to would be tenants with 30% saying it is the most important aspect and 63% decide to take a property on their first viewing, with just 2% needing more than five minutes to make their mind up. The second biggest attraction for prospective tenants is a sizable main bedroom with 28% saying it was most likely to turn their heads followed by 20% putting a spacious living room at the top of their renting wish list. Just 10% put that bathroom as the most important aspect of their rental property and just 2% are bothered about the garden, the research from Rentify also shows. Some 7% of those surveyed said they can take as little as 10 seconds to know if a property is right for them, however 5% are not as quick to rush into a decision and not making a decision quicker than 10 minutes into a viewing. Over half, 63%, said that they are happy to take a flat on their first viewing if it feels right with just 5% saying they will view a home at least three times before making a decision. The research also found that 77% of those surveyed believe that they find suggestions by estate agents unhelpful when deciding if a property is right for them, with 10% admitting they would rent a property after viewing online pictures and not physically visiting the property. ‘For many, finding the right property is important but it is also important tenants don't rush into decisions. High street lettings agents can sometimes disguise flaws just to make a deal, so it's always worth taking extra time getting to know every inch of the property before getting hold of the keys,’ said Rentify chief executive officer George Spencer. Continue reading
