News & Views Blog

• Almost two thirds of people want to see more affordable housing built for key workers and first time buyers
• People believe the planning process is too complicated and is hindering efforts to tackle supply shortages
• BUT the majority don't want new housing in their area, and are hostile to high density developments
  

A consensus for affordable homes?

 61.2% of people believe more affordable housing is needed for key workers, according to the latest research from Propertyfinder.com. However, when asked about the prospect of new developments in their local area, people were less accommodating.

The latest propertyfinder.com survey which looked at public attitudes towards the planning process, and new residential developments found that in principle most people backed the idea of new housing to address supply problems (an estimated shortfall of 50,000 new homes every year). When it came to their own area however, only 39.1% wanted more housing built. The findings come as it was announced last week that buying a home is out of reach for key public sector workers in more than two thirds of UK towns.

People were also hostile to new high density developments. They had a strong preference for building houses rather than flats. Only 8.6% of people supported converting a nearby house into flats, while a mere 11.3% favoured a new block of flats. Over three quarters of people (77.6%) were open to a planning application for a new single new dwelling close by however. Warren Bright, Chief Executive of propertyfinder.com commented:

It seems the not-in-my-backyard mentality is alive and well in the UK. While most people are sympathetic about the struggle facing would be buyers and workers such as nurses, they are opposed to particular new developments in their area. While we undoubtedly need more family houses, smaller more affordable homes are also essential to help those trying to get onto the first rung of the property ladder.

 The planning process is not helping
The planning itself also received a lot of criticism. An overwhelming number of people who had been involved in a planning application  found it overcomplicated, hard to understand, and involving too much red tape. 67.9% of people said the process takes too long, and only half felt that enough consideration was given to local objections. Warren Bright said:

The labrynthine planning process is a serious obstacle to solving the UK's housing shortage. When you take into account the DCLG's projected increase in households of 209,000 per annum until the year 2016, the current new build rate of 160,000 new homes a year is clearly falling short of requirements.

Tony Blair speaks of the need to release land quicker for development and for more houses in the south. Local authorities have far too much control over the planning process. Firmer direction from central government is essential.

Concerns for the environment for the environment is a case against development
Environmental concerns were a significant factor for many people. 75.3% were against using local green space for residential projects. There were also a clear preference for any new developments to be inconspicuous and in keeping with other properties in the area. Only one in ten people wanted 'different and eye-catching' new residential developments, and mock period-style architecture was most favoured.

Respondents also offered their views on the impact of new residents, which goes some way to explaining people's resistance to new developments. Traffic was a key objection. Almost three-quarters of people feared an influx of new cars would mean a lack of parking, as well as more congestion. The extra noise caused by potential new residents was a concern for 53.9% of people, but they were also worried about the ability of local services to cope with an increase in population. Warren Bright concluded:

With space at a premium and with opposition to housing such as new flats, reconciling the calls to address the housing shortage with local opinion appears even more complicated. 

Posted by Bronwyn at 11:02 AM | Permalink | Comments (0)

Lenders are preempting a Bank of England (BoE) interest rate rise by starting to withdraw their fixed-rate mortgage products. On Wednesday, the UK inflation rate rose to 3.1%, higher than expected, and a result Alliance & Leicester pulled its fixed-rate offering - with other major mortgage lenders expected to follow suit.

Nicholas Leeming, Director of propertyfinder.com commented:

Once again, the people who will be hit the hardest by the withdrawal of fixed rate packages will be the first time buyers. Affordability constraints are preventing many from getting a foot on the property ladder, and those that are managing to invest in property for the first time are eager to fix their monthly repayments to regulate the outgoings of their already stretched finances.

According to the Council of Mortgage Lenders , 87% of first time buyers are now opting for a fixed rate mortgage, the removal of which may serve to push lower the already declining numbers of first time buyers in the market. We believe that the housing market is already responding to the MPC’s succession of rises, and that the expected rise next month may cause a more rapid adjustment in the market than is required.

Taking mortgage products off the market may promote premature nervousness in the market, preempting the effects the rate rise next month is likely to have on an already cooling market.

Posted by at 03:38 PM | Permalink | Comments (0)

Here we have some simple Q&A from the HIPS website:

When do the Packs come into effect?
1 June 2007

What happens if I put my home on the market before 1 June 2007?
You won't need a Pack, unless the property remains unsold on 1 January 2008 - then you must get one.

How long does a HIP last?
Until the home is sold, and if it's taken off the market for less than a year and then re-marketed, the same pack may be used.

Who compiles HIPs?
Sellers can hire estate agents, solicitors, separate pack providers, or do it themselves.

Are HIPs required across the UK?
No - only in England and Wales

Do I have to put electrical certificates in my Pack?

Who pays for the Pack? 

How long is a Pack valid for?

What happens if I am selling my home privately?

Do you know your HIPs?
Test your knowledge with the HIPs Quiz

Posted by Bronwyn at 04:26 PM | Permalink | Comments (17)

The forthcoming requirement for Home Information Packs will effect both buyers and sellers alike, but how will they effect the property market? 

Nicholas Leeming, our Propertyfinder.com property guru believes:

Most agents don’t think that HIPs have had a major effect yet, mainly because the average consumer is still largely unaware of HIPs. The majority of homeowners simply have not heard about them...

As June draws closer, and people become more aware, we will certainly see a rise in the number of instructions as sellers seek to beat the deadline.

Any increase in supply related to HIPs is going to disrupt normal seasonal patterns in the market and make it harder to determine the true impact of the Bank of England’s series of rate rises on the housing market. It will take some time for things to settle and the underlying picture to become clearer.

Posted by Bronwyn at 03:02 PM | Permalink | Comments (0)

I've lost guarantees of work I have had done - what do I do?
Don't worry - guarantees aren't a required component of the Pack, but can be included if you have them.

What should I do if searches or leasehold documents are still needed?
If any documents are still outstanding towards the end of the 28-day period, you may wish to look into the delay.

Should the pack include a Home Condition Report?
A Home Condition Report could help you sell your property more quickly if it shows that it is in good condition, or if it highlights any problems straight away for potential buyers, it can avoid nasty surprises for buyers later in the process.

Posted by Bronwyn at 02:50 PM | Permalink | Comments (0)

The seller is responsible for the cost of a Home Information Pack. The cost of the Pack is down to the market, but sellers will often be able to defer costs until late in the sale.

How will I pay for the Pack?
This depends on the agreement between the seller and the compiler of the Pack. Some examples of the ways that Packs might be paid for are as follows:

Seller pays for the Pack upfront from estate agent, solicitor or Pack provider
Seller compiles the Pack and pays each organisation for the relevant component (e.g. the Land Registry for the title document)
Estate agent offers the Pack to the seller on a 'no sale, no fee' basis, where the cost of the Pack could be included in the estate agent's commission
Estate agent offers the Pack to the seller on a 'buy now, pay on completion' basis, which is usually a credit agreement for three or six months between the seller and the organisation compiling the pack.

These are only indications of payment models; the Pack regulations do not prescribe any particular payment method.

From the HIPS website. 

Posted by Bronwyn at 02:47 PM | Permalink | Comments (0)

Some documents can be no be more than three months old when marketing starts, but there is no obligation to update Packs as long as the property remains on the market. No component of the Pack should be more than 12 months old on the day the property goes on sale. For more details, see the regulations on the industry site.

From the HIPS website. 

Posted by Bronwyn at 02:42 PM | Permalink | Comments (1)

If you are marketing your property, even if it's just by putting a 'for sale' sign in the window, you need a Pack. Sales where no marketing takes place (e.g. to a member of the family) won't need a Pack.

From the HIPS website.

Posted by Bronwyn at 02:39 PM | Permalink | Comments (1)

What special features in a house do you think attract a premium ?

This week's expert, Ray Smith, from Currell in Islington suggests:

The 'special features' that attract a premium will vary dramatically from property to property, depending on the target market. Character is the main feature that will make a property stand out, whether it be a top end apartment or family home...

There are more specific features that stand out for different areas of the market and will help command a premium over and above similar properties, such as period features on houses and conversions or exposed brick walls, steel columns and factory windows in loft apartments.

At the top end of the market, the desirability of penthouse apartments can be increased by up-to-date technology, such as integral sound/entertainment system, cutting edge design, high specification bathrooms and kitchens. Roof terraces and secure parking are also major selling features with this type of property.

A well designed open-plan kitchen and family room are certainly desirable in a substantial family house, as is a family friendly garden. Another big selling feature can be nanny accommodation and the placement and number of bathrooms is also very important.

Future 'special features' are likely to include eco-friendly elements. With the introduction of the Home Information Pack (HIPs) in June this year, residential property is likely to be advertised with a Home Energy Assessment rating, so energy conscious design features are likely to become more attractive to buyers.

Looking outside the house, simply having a garden can increase the value of the property by up to 15%. Maintaining a neat lawn and garden makes property easier to sell and vendors need to be aware that almost two thirds of house hunters are most attracted by well tended gardens.

Further information on June introduction of HIPs is available in our Home Information Packs section.
Read about some gardens in need of loving for Love your Lawn Week.

Posted by at 09:30 AM | Permalink | Comments (0)

• The number of first time buyers falls as worries over affordability mount

• Buyers' offers are their lowest since last July - sellers begin to lose the upper hand

• Market confidence fades on fears that respite from rate rises is just temporary

• Bank of England has done enough to cool the market

First time buyers are the first to opt out

Propertyfinder.com figures track the number of first time buyers as a proportion of all home buyers.  A year ago, one third of home buyers were getting on the housing ladder for the first time, now that figure has fallen to 22%, just over a fifth.  Recent figures from CML also show that the number of first time buyers in the market is falling. Nicholas Leeming, Director of Propertyfinder.com commented:

It is no wonder first-time buyers are holding off purchasing property – increases in the cost of borrowing most dramatically affect those without capital already invested in bricks and mortar.  A typical first-time buyer today must pay £2,650 more in the first year in mortgage repayments and stamp duty than someone this time last year.

Demand at the bottom end of the market is definitely calming, and there are signs that the rest of the market is following.

Sellers lose the upper hand as buyers offer less
Further up the housing market, there are signs that demand is waning.  Despite sellers recently having been far more optimistic about house price growth than buyers, their expectations are becoming less confident.  The balance between buyer and seller sentiment are showing signs of evening out.  Sellers have been more confident than buyers on the outlook for property prices in recent months and this is reflected in buyers’ offers. Buyers, frustrated by the shortage of property on the market (as those thinking of selling have held off putting homes on the market), have been offering above the asking price. But now, for the first time this year, buyers are again beginning to offer below the asking price again – in fact considerably lower - 2.3%.  This is the lowest average offer since July last year – just before the Bank of England’s series of rate rises began.

We seem to only now be experiencing the full effect of the MPC’s actions.  Spring is traditionally the time of year when we see the most activity in the housing market and we would expect consumer sentiment and housing data to be at its most positive.  Instead the picture is now less optimistic.  The Bank of England has done enough and the housing market is most definitely slowing.  This is an orderly slowdown.  Further rate rises are not needed.

Posted by Bronwyn at 09:00 AM | Permalink | Comments (0)

Not only are the 125,000 RICS members experts in all matters relating to real estate and construction, but they can also offer strategic advice in the economics, valuation, finance, investment and management of all the world’s physical assets. This includes just about everything from the construction of major public buildings and surveying the sea bed, right through to surveying your home and negotiating leases for business premises.

When you next buy or sell a home, if you speak to an RICS member firm with the relevant experience that is 'Regulated by RICS', you will be assured that you are dealing with someone who has spent four or five years becoming properly qualified. You will also benefit from clear, impartial and expert advice on many aspects of your sale or purchase.

Find out more about how RICS can help you on Propertyfinder.

Posted by Bronwyn at 09:08 AM | Permalink | Comments (0)

I have a small garden, which, although not in a complete mess is a bit unruly. Should I get a landscape gardener in before going on the market?

This week's expert, Wendy Peterman, from Petermans in Herne Hill suggests:

There are a number of things you can do yourself before putting your home on the market - and you can try these before hiring a landscape gardener as you may find they suffice...

Some quick hints that can overhaul a garden in a hurry include:

• Start from the edge - the boundaries - and work inwards.

• A simple coat of paint or stain on fences will help bounce the light.

• Use bark mulch around flower beds and plants to make them aesthetically pleasing.

• Bark mulch will also sort out nettles and make the ground look level.

• Put colour nearer to the house rather than throughout the entire area.

• Place clumps of colourful pots outside the back door.

• Remove poor performing plants - it is far better to leave gaps than unsightly, dying    plants.

• Jet wash any hard staining areas, garden furniture and framework to give them a lift.

• Plant easy to maintain window pots or hanging baskets.

For more helpful tips in the garden read our Essential Garden Maintenance.

Posted by at 10:20 AM | Permalink | Comments (2)

Home buyers will be breathing a huge sigh of relief today. Confidence in the housing market is still relatively strong, but there are already signs of a slowdown. After three rises since the summer, buyers are increasingly sensitive to interest rates. Furthermore the coming introduction of HIPs may cause some disruption to the market, and a further hike today would have been ill timed to say the least.

Posted by Bronwyn at 01:38 PM | Permalink | Comments (0)