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Majority of UK buyers and sellers have had problems with estate agents, new research shows
Nearly two thirds of buyers and sellers have experienced problems with their estate agent in the last five years, according to new research. Some 60% of home buyers and sellers faced problems with their estate agents but 39% did not consider whether agents were regulated, meaning their agent may not have been signed up to a code of conduct, according to the research from the National Association of Estate Agents (NAEA). Of the 60% reporting to have had issues with their estate agents over a third, 37%, admitted that these could have been avoided if their agent was better regulated. The biggest complaint from the UK’s property market was the fact that their estate agent had bad communication skills. Some 21% said this was not calling them back, or chasing them too much. A further 14% felt as though their agent didn’t care about them. An additional 13% claimed that their estate agent had not told them about known faults in properties they were looking at, whilst 11% said their agent made promises to them that they did not see through. Other problems reported by home buyers and sellers included 9% finding that their agent was unnecessarily over pricing, 9% finding them being dishonest and 10% saying that they over exaggerated property descriptions. Buying a property is the biggest purchase and financial commitment of your life, and can be an overwhelming experience. It takes a lot of hard work and research to ensure you are ticking all the right boxes, and no doubt people come across many challenges along the way. An estate agent should really be there to help this process, not hinder, and therefore the choice of which agent to go with is an important one,’ said Mark Hayward, director general of the NAEA. ‘With the extensive administrative tasks and processes involved in buying or selling a home, communication between agents and homeowners is essential. It’s the estate agents’ role to make these processes seem as pain-free and seamless as possible, which regulated agents endeavour to do,’ he added. The report also found that people in London are the most likely to encounter a problem with their estate agent, with 83% claiming to have had an issue. Some 34% of Londoners reported not being informed about known property faults, 16% cited bad communication and 14% feeling as if the estate agent didn’t care about them. Those in Scotland have had the easiest run, with only 35% claiming to have had a problem with their estate agent in the last five years. The study also revealed that almost half, 47%, of those who didn’t check whether their agent was regulated or not, said it didn’t even cross their minds. A further 16% assumed that all agents were regulated, whilst 21% simply chose their agent because they managed the house they wanted. ‘In such a lively market, it’s important… Continue reading
Average house prices in the UK fell by 1.1% last month, the latest data shows
Average house prices in the UK fell 1.1% in September but are still up 6.9% on an annual basis, according to the latest index figures to be published. During the month average house price stabilised at £203,135, but in London property prices fell 3.3% but are still up 19.8% year in year taking the average price in the capital to £507,967. The National Housing Market Monitor report from haart estate agents says that the market remains strong with almost 10 buyers chasing each new property instruction across the UK, up from eight two years ago. In London there are 16 potential buyers chasing each property instruction. The difference between the London market and the UK as a whole is also marked with it comes to new properties being put up for sale. They have increased annually across the UK by 2.8% but in London by 23.1%. The report from the independent agent which has a network of 200 branches across the country, also shows that the average property price for first time buyers has reached two year high at £160,218, up 4.1% on a monthly basis and 8.2% annually. ‘Although our data shows a small slowdown in house price growth on a monthly basis, this must be taken in the wider market context. Good mortgage deals are still very much on the table and interest rates aren’t going up for the foreseeable future,’ said Paul Smith, chief executive officer of haart. ‘We have 10 buyers chasing every new property instruction UK wide so sellers shouldn’t be concerned. They should be reassured that the UK property market is still performing well,’ he added. New properties for sale across the UK in September increased 2.8% annually but fell on the month. This is the fourth consecutive month in which property supply has increased on an annual basis. In contrast the number of new buyers is down 6.6% annually, again the fourth consecutive month in which the level of demand has fallen on an annual basis. Similar to new buyer registrations, the number of first time buyer registrations decreased 6.4% annually and 2.8% on the month. However first time buyers now make up a higher percentage of all mortgages written, 44.7% in September 2014, up from 41.1% last year. The average mortgage achieved by first time buyers is also up and now stands at £125,668, an increase of 11.1% annually and 3.9% on the month. Continue reading
Chennai residential market proves to be the most resilient in India
The Chennai residential market is one of the steadiest in India and has proved its resilience just after the global economic downturn which was one of the toughest periods for the country’s property market. Between 2008 and 2009 it remained relatively stable in terms of sales volume and price, compared to cities like Mumbai, NCR, Bengaluru and Hyderabad, according to a new analysis from international real estate firm Knight Frank. It explains that new infrastructure projects begun during the second half of 2014 including the building of the Outer Ring Road (ORR) and the Chennai Metro Rail, will lead to the emergence of new residential property growth corridors like Kuthambakkam, Chembarambakkam and Poonamallee along the ORR, and Vadapalani, Ashok Nagar and Alandur along the metro rail link. However, residential development is nonexistent in North Chennai, primarily due to the unavailability of vacant land, narrow arterial roads and lack of employment opportunities. This has compelled developers to look for opportunities in the South and West Chennai markets. According to Hitendra Gupta, a research consultant from Knight Frank India, the emergence of West Chennai as one of the more successful residential micro markets is as a result of affordable pricing, its proximity to the city centre, the presence of employment hubs and a relatively better developed social infrastructure. South Chennai, comprising OMR and GST Road, has been highlighted as the current growth corridor of the city. Its proximity to Chennai International Airport, the presence of arterial roads and the availability of huge vacant land parcels have enabled it to grow rapidly into an emerging residential hub. Gupta points out that the IT and ITeS sectors, the dominant employer in this region, has a positive outlook for business in 2015. This along with a change in economic sentiment, as well as the stable government at the centre, bodes well for new launches and absorption is set to increase by 31% and 14% in West and South Chennai respectively in the second half of 2014. The weighted average price in the Chennai market is forecasted to increase by 3% for 2014 against a 5% increase witnessed in the first half of 2014, the report concludes. Continue reading
