Tag Archives: london
Not all estate agents ask about neighbours when selling a house
Only 40% of estate agents ask people selling their home if they have issues with their neighbours at a time when issues from next door can knock thousands off the price of a property, new research shows. It is clear that not all estate agents want to ask the question when it comes to neighbourly problems and 10% rely solely on the purchasers’ solicitor or conveyancer to investigate existing issues with neighbours. The research from Churchill Home Insurance also found that according to estate agents the most contentious disputes are over communal space. Over half, 56%, of the estate agents surveyed identified this as the major issue while 10% said it was noise and 8% boundaries. Dogs and anti-social behaviour were also cited. Some 14% of estate agents highlighted cases where the seller had to drop the price of a property because of issues with neighbours. The average price drop was 3.8%, around £7,000 in England and Wales and £6,400 in Scotland. Churchill’s research also reveals that 20% of estate agents ask sellers if they have had issues with their council and 15% of these would pass this information on to the prospective buyer. As such, it is vital that prospective buyers ask the right questions to ensure they get all of the information they require to make an informed purchase, the firm said. Buyers are relying on their solicitors or conveyancers to investigate issues with potential new neighbours. The conveyancing process can unravel any open disputes or circumstances that could lead to disagreements, but the subjectivity of loud music or an aggressive neighbourhood dog means these checks may not capture potential day to day problems. ‘Buying a property is one of the most expensive decisions many of us will ever make. As such, we are well within our rights to be informed about issues that may affect our buying decision,’ said Martin Scott, head of Churchill Home Insurance. ‘Buyers should ask their estate agent to disclose as much as information as they can about the property, seller and neighbours to help the buyer make the right decision,’ he added. He also pointed out that since the demise of the Property Misdirection Act in 2013, estate agents are required under the Consumer Protection from Unfair Trading regulations to reveal any negative issues about a property, if known to them, which may affect the buying decision. If an estate agent has been made aware of a nightmare neighbour or previous council disputes, they are obliged to inform the buyer. Withholding information that could affect the buying decision could land estate agents in hot water. They may be subject to legal action and fines of up to £5,000 and/or two years in prison. Churchill says that buyers should not be afraid to ask questions and when they meet the estate agent or seller they should specifically about issues such as past/ongoing disputes and the… Continue reading
Prime properties in commuter areas set to outperform London prices
Prime commuter housing markets are set to outperform prime London in the five years to 2020, according to new research from international real estate advisor Savills. Overall the relative value offered compared to the capital is likely to underpin medium-term house price growth, the five year UK prime housing market report says. However, short term growth prospects are likely to be hampered by the combined impact of stamp duty, mortgage market review and a slow prime London market. The price gap between property in London and its commuter belt indicates the potential for significant growth once the ripple effect is restored, it explains. Prime London property prices are 36.8% above their 2007 levels, compared to a 6.6% rise in commuter areas over the same period. Consequently, the prime housing markets in London suburbs, inner commuter, up to 30 minutes train journey to London, and outer commuter up to 60 minutes, locations have the strongest growth prospects over the five years to 2020, at 24.5%, 24% and 23.4% respectively. However, the report explains that these prime housing markets in the commuter zone markets are dependent on movement in the prime London housing markets, which is only expected to occur after they acclimatise to a new tax and regulatory environment, allowing the fundamentals of wealth generation, both domestic and global, to translate into restored demand. This is expected to start to take effect in 2017, with trend rates of price growth returning from 2018 onwards to deliver five year price growth of 21.5% in prime central London and 18.2% growth in other prime London markets. Across the rest of the country prime housing markets are expected to be driven by a preference for city and town locations and strengthening local economies. Scotland is seeing a similar predilection for metropolitan areas, but all markets over £750,000 are being constrained by Land and Buildings Transaction Tax to some degree. ‘We expect the trend for urban living to continue as London buyers seek out vibrant locations where they don’t have to sacrifice the convenience of living close to shops, restaurants and leisure facilities,’ said Sophie Chick, Savills research associate director. ‘Positive sentiment for cities in the north of England is also being bolstered by talk of a northern powerhouse, despite the proposals being some way off,’ she explained. ‘While the prime property market is continuing to adjust to a new fiscal and regulatory environment, wages are increasing, interest rates are still low and there is political certainty for the next five years. Under these circumstances, we expect prime property to return to long term trend rates of real price growth in 2018,’ she added. Continue reading
City of London office market sees strongest recovery on record
Rents for City of London offices have proved more resilient in recent years than during previous market downturns and recoveries, according to new research. The analysis from real estate firm Knight Franks indexed City of London office rents at 100 for the pre-downturn peaks recorded in the fourth quarter of 1989, the third quarter of 2001, and the fourth quarter of 2007. This showed that rents in the most recent downturn found a floor and moved into recovery far sooner than during the early 1990s and early 2000s downturns and overall the City office market has seen its strongest recovery on record. Also, the current recovery is proving to be far more enduring than that seen after the early 2000s downturn. Indeed that market cycle lasted just six years, with the arrival of the global financial crisis in late 2007, the report points out. It also explains that the outlook is good as it is over seven years on from the market peak for rents, and growth is still occurring, and expected to continue. ‘These figures demonstrate that the City office market has proved far more resilient in recent years than anyone would have imagined back in 2007 when the financial crisis began,’ said Bradley Baker, central London tenant representation partner at Knight Frank. ‘One of the keys to the City’s success has been its’ significant diversification away from an over-dependence on the financial sector in the past and instead embracing and attracting technology and media firms such as Saatchi & Saatchi, Amazon, Hachette and Uber,’ he explained. ‘Unlike previous downturns, the current recovery began within two years of the initial crash and has been sustained for over five years. This compares favourably to the 2001/2003 and 1989/1991 crashes which took over three and four years respectively to post a recovery, and even then they were short lived,’ he added. Continue reading
