Property indices have been friend and foe to estate agents over the years, but the recent turbulent market has created sharp contradictions which have caused me on many occasions to question their reliability and accuracy.
According to Knight Frank’s recent Property Sentiment Index, property prices fell for the 20th consecutive month, yet Rightmove’s latest House Price Index shows asking prices seeing their sharpest rise in ten years. This kind of contradiction reported across the country only creates confusion with the general public and uncertainty in the market.
The property market is built on confidence and, like every other economic market, is easily influenced by positive or negative market sentiment. All of the monthly indices utilise different sources of data and represent different stages of the buying process, something that the public doesn’t necessarily appreciate.
Whether it’s asking prices (Rightmove), industry or general public market sentiment (RICS / Knight Frank), mortgage approvals (Nationwide, Halifax) or transaction prices (HM Land Registry / LSL Academetrics), the wealth of indices and their vast inconsistencies have a huge impact on the market.
Although a national perspective is useful for property investors and industry professionals, it is important to remember that for most people reading these headlines, their property is their home and their main asset.
Yes, buying a property will probably be one of the largest investments most people will ever make, but I am constantly reminding buyers that this will be their home first and foremost. This sounds very simple and straightforward, but I think households across the country have lost sight of that.
Micro-markets exist not only in every town and city but even street by street, and it’s our job at the sharp end to understand these markets and advise clients appropriately. Defending the latest news agenda is something we are quite used to doing.
If a buyer falls in love with a property and buys it, does it matter that in six months or a year’s time, the price might have dipped by 0.5%? No, I would hope they will stay there, add value and enjoy their home for a number of years before starting to worry about the market again. As experts in the housing market we should be advising our clients to take these indices with a pinch of salt and concentrate on the basics of what makes a property a good investment and mostly importantly a home.
* David Pollock has published his first book, ‘101 Things Your Estate Agent Should Tell You’. Click here to buy on Amazon.
Source: www.estateagenttoday.co.uk

The Government’s holiday on Stamp Duty Land Tax will come to an end in just under two months’ time, on Saturday 24th March 2012.

Wendy Evans Scott, President of the NAEA said: “With only two months remaining, first time buyers must act quickly to avoid paying Stamp Duty Land Tax on their first home purchase. If you’re currently in a chain and waiting to complete your purchase then make sure that others in the chain know about the end of the tax holiday too. Good communication with your solicitor can help move the process forward, helping you beat the 24th March cut-off.”

After the tax exemption has come to an end FTBs will face a tax of one per cent on house purchases between £125,000 and £250,000, and a three per cent tax on purchases over £250,000.

The NAEA’s recent figures show that the number of sales to FTBs edged up during November and December from 19 per cent to 21 per cent of sales per branch. However FTBs still represent a low percentage of overall property sales, and NAEA data shows the number of first time buyers getting on to the housing ladder hit a three-year low in October, at just 16 per cent of sales.

Mrs Evans Scott continued: “First time buyers are key to a healthy property market. We hope to see the number of people completing the purchase of their first home continuing to increase through February and March, as many FTBs are keen to purchase their first home before the tax exemption deadline.

“However, it is impossible to predict what impact the end of the tax exemption will have on first time buyers, particularly those on very tight budgets of under £250,000 for whom the one per cent tax could be disastrous. The Government will need to monitor sales closely and consider other action to support the fragile first time buyer market.”
Source: http://www.housefund.co.uk/2012/01/25/less-than-2-months-left-first-before-time-buyers-stamp-duty-holiday-expires/

City workers saw Greene, or rather green men in the City this week, as Greene & Co. put down “Greene” roots in the capital with the launch of the new city office at Clerkenwell. Donned in fetching green Zentai-style suits, bowler hats and briefcases, the special Greene gents frequented the City’s favourite haunts this week and could be spotted at various locations including Liverpool Street, St Paul’s, Spitalfields, Bank, Clerkenwell and Farringdon.

The Greene men were promoting a competition to win one of five meals for two at the popular city eatery Coq d’argent, with Greene & Co. pledging to donatate £1 for every entry, to the 3Cs charity – Crohn’s & Colitis in Childhood.

You can still enter the competition up until the 29th February 2012 via the the City Facebook page, search Greene & Co City. The best street photos will also be uploaded to this page ready for tagging by anyone lucky enough to be snapped.

Greene & Co. City has arrived.

Landlords may want to ensure they carry out preventative maintenance on their properties to ensure they are prepared for cold weather.

The AA urged homeowners to think back to the freezing temperatures experienced last winter and consider how they can avoid making an insurance claim.

Figures reveal the average claim not covered by a policy in 2010 was £596, with the most common problem plumbing related and usually involving burst pipes or leaks.

As a result, individuals were advised to ensure pipes in their lofts or in exposed areas were sufficiently insulated and to turn off the water supply if the property is to be left unattended for an extended period.

Tom Stringer, of AA Home Emergency Response, said: "As many of us enjoy unseasonably mild weather there is a serious danger that we will forget the extremely cold winters of the last few years."

Other tips included clearing drains and checking guttering and replacing any missing roof tiles.

Source: http://www.rman.co.uk

Greene & Co. predict a shortage of family homes in 2012 in London’s most popular family-friendly areas following a surge of registrations in the £1million price bracket. Demand for these properties around Crouch End, West Hampstead and Maida Vale, has increased by in the last three months of 2011 as families opt to stay in the capital to avoid escalating commuter costs.

David Pollock, Managing Director of Greene & Co. comments: “Homeowners who previously would have moved out of London with a young family are now remaining in the capital and this is creating a shortage of family homes. Buyers are looking for a permanent base which incorporates good schools and green spaces but also has a London village community feel with a host of decent restaurants, shops and quick commuter links to the capital.

Greene & Co. reports that many potential buyers have been forced to rent in the area until the right property comes up, leading to mortgage-ready applicants and chain free sales. Buyers are also happy to carry out modernisation and extend properties to suit their particular needs.

David continues: “We are hopeful that the start of 2012 will bring much needed family homes to the market. Sellers, many of whom will be downsizing after living in the area for some years, can expect a speedy and often chain-free sale. Such is the demand that we have been selling these homes at above the asking prices in the later part of 2011.”

Greene & Co. was awarded as Best Small Estate Agency at The Estate Agency of the Year Awards in association with The Sunday Times and The Times and sponsored by Zoopla.co.uk.

On Thursday 8th December, over 500 leading estate agents and conveyancing lawyers descended upon The Lancaster London Hotel opposite Hyde Park for The Estate Agency of The Year Awards ceremony. The winners received their awards from celebrity guest, Ben Fogle who charmed the audience with some inspiring tales of his adventures.

The awards ceremony was the culminating event of a rigorous and thorough judging process carried out over a four month period by a panel of industry experts who assessed initial entry submissions before conducting an extensive review of the entrants which included hundreds of telephone interviews and mystery shopping exercises. The whole judging process was overseen by The Property Ombudsman; Christopher Hamer.

For the past nine years, the awards have become increasingly competitive with the standard of entries rising ever higher. These awards are firmly established as the most sought-after and difficult to win in estate agency. Over 5,000 offices were represented this year, but only the very best of the best were crowned as winners.

Greene & Co., winners of the Best Small Estate Agency were delighted to receive the award.

A website listing all the winning companies with comments from the judges as to why they won can be found at www.estateagencyoftheyear.com

Peter Knight, Chairman of the event organisers Estate Agency Events commented “At a time when the property market throughout much of the UK continues to struggle, choosing the right estate agent has never been more pertinent. The winners of these awards represent the top 10% of an industry where standards are hugely variable. Consumers should have confidence that a firm displaying a winner’s medal from these awards are a cut above the rest.”

The main awards were sponsored by Zoopla.co.uk, the UK’s most comprehensive property website whilst the specialist categories were sponsored by some of the industry’s leading suppliers including Audio Agent, ARPM, Clear Conveyancing, FWBS, Key Agent, Law Firm Services, Moneypenny, Mortgage Talk, MoveWithUs, MyHomeMove, Ravensworth, Reapit, Roomservice by CORT and WhatHouse.co.uk

For further information, please contact marketing@greene.co.uk.

From next year, agents and landlords will have 30 days in which to protect a tenant’s deposit, rather than the current 14.

The change is part of ‘tweaks’ made to tenancy deposit protection in the new Localism Act 2011.

These were made following court cases over the rights of a tenant to sue for a breach of the deposit protection legislation or when deposit money was not protected within 14 days, but by the time of a court hearing.

The revised legislation also does away with mandatory penalties of three times the deposit if the deposit is not correctly registered and the ‘prescribed information’ not properly given.
Instead, courts will be allowed to use their discretion to hand out penalties worth between one and three times the value of an unprotected deposit.
The current legislation has had a number of challenges within the courts, which have issued varying rulings – some in favour of tenants and others in favour of landlords.

Welcoming the changes, the chief executive of the Tenancy Deposit Scheme, Steve Harriott, said: “I am pleased the housing minister managed to find the parliamentary time to get these amendments to the legislation through.

“The recent court decisions were causing confusion about tenancy deposit protection regulations. These amendments make it clear that tenancy deposit protection is here to stay.”

Full details of the changes are available in new guidance notes issued by the Tenancy Deposit Scheme which can be seen on www.tds.gb.com
Source: http://www.lettingagenttoday.co.uk

Corporate lettings market in London recovers
The corporate lettings market in London is again surging. Companies are allocating more money towards renting prime properties to attract employees from around the world and the rest of the UK.

As more companies commit greater resources to finding and renting prime rental properties to attract and relocate staff to London, the average budget for a mid market corporate let has risen substantially from that of a year ago. We have recently concluded multiple corporate letting contracts where the landlords feel they are really benefiting from renting their properties on a long-term basis.

They have received premium rental returns without the worry of void periods or arrears and the hassle of finding new tenants has been removed. They no longer need to fork out for the maintenance or management fees, for the duration of the lease and their properties have also been kept in an excellent condition, as they are well maintained and cleaned on a regular basis.

Due to this resurge in demand for corporate lets one of Greene & Co.’s Corporate Rental clients is looking to lease a wide range of apartments for three, five and up to ten years.
They are looking for everything from studios to two and three bedroom apartments in EC1, 2, 3, 4 and SE1.

For anyone thinking about letting their property, corporate lets could be the ideal solution. Click here for more information here.
You can call our Lettings team on 020 7250 0052 or email city@greene.co.uk

Almost 2 million homeowners are now paying less for their mortgages than when they first bought their properties, according to new research carried out by Caroline Purdey, the market analyst for the Council of Mortgage Lenders.

The savings are due to a record low Bank of England base rate of 0.5% for the past 32 months; helping 1.8 million owners save an average of £2,600 a year by switching to their lender’s Standard Variable Rate after their fixed rate deal ended.

According to the CML, even if interest rates were to rise next year, around 85% of these borrowers would still be paying less each month than their original payment by the end of 2012, and around 58% would still be paying less than their original payment throughout 2014.

Simon Clarke, of independent mortgage brokers Jacobs Payne & Parry, commented: “The low interest rate environment has been an enormous support for homeowners in the turbulent economic climate of the past three to four years.

Many people who may have suffered financially, have kept a roof over their heads due to the fact their monthly mortgage payments have been so low that there have been relatively few repossessions, despite the magnitude of the current crisis, shows just how much of a support low Standard Variable Rates have provided. If Standard Variable Rates had been higher, far more people would have fallen into arrears and worse”

Our very own David Pollock, MD of Greene & Co. added: “Homeowners with an ounce of nous will have been overpaying on their mortgages and paying off some of their equity at a much quicker rate. The savings will stand them in good stead when the market recovers. As long as base rates remain low, this is a win-win situation”

For now, however, many borrowers are adopting a “wait and see” approach as markets expect the base rate to rise from 0.5% to around 0.9% by the end of 2012 and 2% by the end of 2014.

Source: http://www.express.co.uk/posts/view/278739/2m-save-a-fortune-on-their-mortgage