Posts with tag: property sales

Rental Property Sales Outstrip Purchases Five-Fold in Scotland

Published On: August 14, 2018 at 9:32 am

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Rental property sales north of the border have outstripped purchases of these homes five-fold in the last three months, following the Scottish Government’s shake-up of the private rental sector.

Research by the National Landlords Association (NLA) found that almost a quarter (24%) of landlords with properties in Scotland have sold over the past three months, with just 5% purchasing in the same period.

The data covers transactions in April-June this year, four months after the Scottish Private Residential Tenancy was introduced in December 2017.

The Scottish Government insists that the reforms provide security, stability and predictability for tenants, as well as appropriate safeguards for landlords, lenders and investors.

However, the NLA warns that its findings, which arrive during festival season in Edinburgh, could affect up to 45,000 landlords, or approximately 67,000 rental properties.

The CEO of the NLA, Richard Lambert, says: “The Scottish Private Residential Tenancy system removes the flexibility of the sector to meet the varied needs of an ever-changing population of renters, in particular, students and those who only seek short-term tenancies, such as during the Edinburgh Festival.

“Because student landlords now have to provide indefinite tenancies, they won’t be able to advertise their properties for the Festival, as they won’t know for certain if they will be free and available by the end of July. If this sets a trend, and artists struggle to find short-term accommodation, the 2018 Edinburgh Festival could be the last to offer such a variety of talent.”

The NLA insists that the level of disinvestment in rental properties is a concern for the Scottish Government, and has urged the UK Parliament to pay close attention, as it currently consults on similar proposals for reforms in England and Wales.

Lambert continues: “The last quarter has seen the highest proportion of landlords selling properties in Scotland in any three-month period since the Government first announced their tenancy reforms in 2016.

“We warned these changes would unnerve investors in private rented homes in Scotland, and it should serve as a clear sign of what to expect if similar reforms are introduced elsewhere in the UK.”

Have you been affected by Scotland’s rental reforms?

We remind all landlords in both Scotland and the rest of the UK to comply with all lettings laws governing the private rental sector, following reports that 150,000 rental homes in Scotland have not received tenancy deposit protection.

The Property Market has Slowed Down for the Summer, Reports Agency Express

Published On: August 6, 2018 at 10:24 am

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The latest Property Activity Index from Agency Express, covering the month of July, remains true to trend, finding that the property market has slowed down for the summer.

As the summer holidays commence, a seasonal adjustment in the property market is anticipated, and this year’s figures appear consistent with trends recorded in previous years.

Nationally, the number of new listings on the sales market dropped by 17.6% from June, while the amount of properties sold was down by 9.1%.

Across the country, just two out of 12 regions bucked the seasonal trend.

The top performing region of July was the East Midlands, which saw an 8.9% rise in the number of new listings, while the amount of properties sold was up by a robust 11.6%.

East Anglia followed suit, with the number of properties sold up by 0.5%. However, on an annual basis, this figure is down.

Other regions to mark more positive growth were:

New listings 

  • North West: -1.3%
  • Wales: -2.8%
  • West Midlands: -3.3%

Properties sold

  • North West: -1.3%
  • Wales: -2.4%
  • West Midlands: -6.3%

The largest declines were recorded across the south. New listings for sale in London were down by a huge 46.1%, while the South East marked a drop of 28.9%. Again, historical data suggests that this drop is not unusual for these regions at this time of year.

Stephen Watson, the Managing Director of Agency Express, comments on the slowdown: “This month’s data came as no surprise; we have now entered the summer holiday months and seasonal adjustments are expected. While this month’s declines seem significant, year-on-year activity remains buoyant.”

As a landlord, has your buying activity slowed down for the summer months? At the same time, have you also witnessed a decline in tenants looking for new properties? We would be interested to hear your side of the story!

Home Sales Appear to Increase by 13% Between May and June

Published On: July 25, 2018 at 9:35 am

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Home sales have appeared to increase by 13% between May and June this year, although HM Revenue & Customs’ (HMRC’s) data is provisional, and is therefore subject to revision.

For June, the number of non-adjusted residential property transactions was around 13% higher than in May. On an annual basis, the amount has dropped by 8.8%.

Taking the seasonally adjusted estimates, home sales decreased by 3% between May and June, while transactions were down by 5.7% on June last year.

The provisional seasonally adjusted UK property transaction count for June was 96,340 home sales and 9,710 non-residential transactions.

In response to the latest figures, Neil Knight, the Business Development Director of Spicerhaart Part Exchange & Assisted Move, comments: “The number of (non-seasonally adjusted) residential transactions was 13% higher in June compared with last month. This is a bigger rise than May’s 12.1% increase and has most likely been boosted by first time buyers, who, according to data released this week, outnumbered home movers in the first half of 2018 for the first time ever.

“At the moment, it appears that it is first time buyers – being incentivised by schemes like Help to Buy – purchasing new builds that are driving both the property and mortgage markets. This is supported by last week’s (non-seasonally adjusted) construction output figures from the ONS, which showed that, while all new construction work was up just 1% on the previous year, output on new housing was up 5.7%.

“And, while it is encouraging to see steady growth in the new build sector, if we want to keep the market moving, we need to be looking at building a wider variety of properties and residential developments, so that home movers and downsizers have options too. Developers often choose new build schemes aimed at first time buyers because there is no chain, so it is easier to sell the properties and move on.”

Confidence in Housing Market Drops to Five-Year Low

Published On: October 30, 2017 at 10:22 am

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Confidence in the housing market has dropped to a five-year low, according to the latest Housing Market Confidence Tracker from Halifax.

The report found that, although just over half of adults still believe that house prices will rise over the next year, almost the same proportion predicts a slowdown.

Confidence in Housing Market Drops to Five-Year Low

Confidence in Housing Market Drops to Five-Year Low

The most pessimistic are Londoners and the under-25 age group, Halifax found.

The report also shows that a rise in interest rates, which is widely expected this week, is not seen as a major barrier to buying a home, and nor is Stamp Duty. These findings arrive at a time when the Government is considering scrapping Stamp Duty for first time buyers.

The main barriers to buying a home were seen as the ability to raise a deposit, followed by job security, high house prices and household finances. Shortages of properties for sale and fees related to housing purchases were considered relatively minor obstacles.

Existing mortgage borrowers, who were asked whether a rise in interest rates would affect their ability to meet repayments, were mainly unworried, with 36% showing concern. This proportion is down by 6% from the 42% measured in 2014.

The Housing Market Confidence Tracker also found that house price optimism – a measure of whether house prices will be higher or lower in a year’s time – has dropped 14 points from April, to 30 points now, which matches the record fall seen following the EU referendum result.

Half of the 1,968 adults surveyed said that they expect house prices to increase over the next year – the lowest level since April 2013, when the proportion was 45%. Meanwhile, one in five think that house prices will fall – the highest level since October 2012.

When it comes to those who think that the next 12 months will be a good time to buy, London is the only region with a negative outlook. Those aged between 18-24 were the only age group with a negative buying outlook, while those over 65 were the most positive.

Across the country, 52% of adults said that they think the next year will be a good time to buy a property.

Selling sentiment, however, has become more negative, down by 11 points since April, to 6%.

Those aged 18-24 were least positive about selling, with 8% more negative than positive, while 35-54-year-olds had the highest level of optimism, with 20% more positive than negative.

Despite expectations of an interest rate rise, an increase was only perceived as the main barrier to buying a home by 15%. Instead, 61% named the ability to raise a deposit and 42% cited job security as the main barriers.

The Managing Director of Halifax Community Bank, Russell Galley, comments: “Housing market optimism has declined significantly over the past year, with almost half of people expecting a general slowdown in the market.

“Even with a potential base rate increase on the horizon, it’s significant that buyers’ concerns continue to be centred on raising deposits and job security, and, as such, we do not anticipate that an increase in base rate will have a significant effect on the demand for properties.”

Property Purchasing Process is Outdated, Estate Agents Agree

Published On: October 30, 2017 at 10:00 am

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The property purchasing process is outdated, estate agents seem to have agreed in the latest Housing Report from NAEA Propertymark (the National Association of Estate Agents).

Property purchasing process

Property Purchasing Process is Outdated, Estate Agents Agree

Property Purchasing Process is Outdated, Estate Agents Agree

As the Government announces that it will consult on the home buying and selling process, the September Housing Report from NAEA Propertymark reveals that eight in ten (79%) of estate agents confirmed that the property purchasing process is outdated last month.

The Government recently revealed plans to shake up the property purchasing process, such as banning gazumping. Read more here.

Housing demand

The study also found that, in September, the number of house hunters registered on estate agents’ books rose to the highest level seen since March this year, at an average of 394 per member branch.

This was up from 343 in August and 347 in July.

Property supply

The amount of properties available to buy on estate agents’ books increased from an average of 37 in August to 41 in September – the highest number recorded since March 2017.

Sales agreed 

Despite the fact that both supply and demand for housing rose in September, the amount of sales agreed remained flat, with an average of eight per branch – the same level as in July and August.

The proportion of sales made to first time buyers was 23% in September, which is also the same as the previous two months.

The Chief Executive of NAEA Propertymark, Mark Hayward, comments on the report: “The Government’s announcement last weekend that it will consult to reform the home buying process couldn’t come soon enough, and we welcome it. Our findings show that estate agents agree, and would welcome changes to ensure the process for buying and selling is brought into the 21st century.

“The current prolonged process means sales are stagnating, despite the fact that the supply of housing is up and there is growing demand. Hopefully, we will see activity pick up marginally in the short-term, when properties which are being marketed now are taken off the market and pushed through, so buyers can be in before Christmas.”

Government Could Ban Gazumping in Property Market Shake-Up

Published On: October 23, 2017 at 9:04 am

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The Government could move to ban gazumping in order to save time and stress during the property purchasing process.

The Communities Secretary, Sajid Javid, has called on the property industry to provide evidence on how buyers and sellers can save time during the home buying process, with any streamlining through technology also being considered.

One area of focus is to make selling and buying property cheaper, faster and less stressful by tackling the practice of gazumping.

The Founder and CEO of online estate agent eMoov.co.uk, Russell Quirk, has contributed to the study, providing his thoughts on gazumping and how it can be tackled head-on to improve the property sector.

Government Could Ban Gazumping in Property Market Shake-Up

Government Could Ban Gazumping in Property Market Shake-Up

He says: “Gazumping really is the scourge of the property market and a practice that is facilitated through a draconian, archaic conveyancing system, the likes of which is shared only with Papa New Guinea, which leaves large numbers of buyers extremely disappointed and out of pocket. During the most stressful part of the property purchase, it further exacerbates the emotional turmoil a buyer can find themselves in, and can crush their hopes and dreams of securing that perfect property.

“The law needs to change to ensure there is a contractual obligation and to protect homebuyers much earlier on in the process. One common misconception is that gazumping is the work of the agent in order to secure more commission on a property. However, this practice is often orchestrated by the seller and without the support or encouragement of the agent, although they take the blame.”

He adds: “These property market fall-throughs cost £1 billion per annum in wasted legal and survey costs – money that could be better spent elsewhere in tackling the housing crisis.”

Quirk has compiled a list of what he believes needs to be done to improve the property market:

  • Encourage e-conveyancing to ensure that all documentation is in one place and digitally accessible quickly, and at the same time across multiple parties.
  • Ensure that surveyors, local authorities and mortgage lenders are legally compelled to work faster and for the buyer, not against them.
  • Allow electronic signatures to be used within the process.
  • Introduce title insurance as they do in the USA.
  • Force the conveyancing process to deal with the multiple work streams in parallel, rather than consecutively.
  • Introduce earlier contractual obligation on the part of the seller and buyer, similarly to Scotland and the USA.

Alongside its call for evidence, the Government has published the findings of a survey of 2,000 people, which showed that 69% of sellers and 62% of buyers report stress and worry as a result of delays.

Almost half (46%) of sellers had concerns about buyers changing their minds after making an offer, while almost a quarter (24%) would use a different estate agent if they had to go through the process again.

Nearly a third (32%) of sellers and 28% of buyers were dissatisfied with the other party’s solicitor, the study also found.

The call for evidence will run for eight weeks from yesterday (Sunday 22nd October 2017).

Javid comments: “We want to help everyone have a good quality home they can afford, and improving the process of buying and selling is part of delivering that. Buying a home is one of life’s largest investments, so if it goes wrong, it can be costly.

“That’s why we’re determined to take action to make the process cheaper, faster and less stressful. This can help save people money and time so they can focus on what matters – finding their dream home. I want to hear from the industry on what more we can do to tackle this issue.”

The Chief Executive of NAEA Propertymark (the National Association of Estate Agents), Mark Hayward, responds to the consultation: “NAEA Propertymark has long been calling for more regulation of the estate agents sector, to ensure that consumers are protected when dealing with the biggest asset most people own, their home. We are delighted that Government has chosen to include further estate agents regulation in the scope of their call for evidence into the house buying and selling process. This is a welcome review of the process, which is currently archaic and does not reflect the 21st century.”