Linda's Blog

EPC Rules Tightened Up!

2012-02-23T01:41:00.000-08:00

The legal rules governing Energy Performance Certificates (EPCs) are set to change on 6 April this year. Agents and others who market property must become aware that they may become liable for a Penalty Notice if marketing a property without an EPC.
A Penalty Notice will be for a sum equal to 12.5% of the property rateable value subject a minimum fine of £500 and a maximum fine of £5,000. Energy Performance Certificates provide information on the energy-efficiency of a building and makes recommendations on how to improve the building’s energy use and carbon dioxide emissions.
Gordon Miller, Sustainability & Communications Director of sustainability business alliance Sustain Worldwide, says: “Commercial agents, on behalf of their landlord clients, in particular will be impacted by the more stringent EPC rules coming in to play from 6 April as non-residential buildings are now included in the legislation for the first time. With fines starting from a minimum of £500 that can be served on the owner/landlord’s agent/representative, and more rigorous checks being put in place by Trading Standards officers, EPCs are ignored at the agent’s peril.”
The requirement to 'commission' an EPC before the building is 'put on the market' will apply to all buildings including non-residential buildings, whether they are being sold or rented out. Prior to 6 April, this only applies to the sale of residential property.
Currently, an EPC must have been commissioned before the marketing of a property can take place, and then ‘reasonable efforts’ to obtain it within 28 days of commissioning. From 6th April this 28 day period will be reduced to 7 days. However, if after this initial 7 days the EPC has not been secured, a further 21 days will be given.
It will still remain the responsibility of the Owner or Landlord to commission the EPC, but the powers of Trading Standards will be increased so that their officers will have new powers enabling them to force not just sellers and landlords, but persons acting on their behalf , that is estate agents and letting agents, to produce proof of commission, or as appropriate, an actual copy of the EPC, for inspection. Once asked, the agent will have 7 days to provide that evidence. If the agent cannot provide that evidence then a Penalty Notice could be issued. Penalty Notices can still be issued to the owner or landlord.

LANDLORDS NEED PROTECTION!

2012-01-10T08:40:00.000-08:00

In light of new economic fears, landlords might expect a rise in demand for lettings, but will also see increased risks. Every agent has a duty of care to his clients, so they need to be able to provide landlords with information about insurance without getting bogged down with the detail of actually selling the policy. Although the current uncertainty might boost your business, it could also lead to a rise in risks for landlords. This is where letting agents have a very important role to make landlords aware that specialist let property insurance is available.
Of course, the landlord has the final choice of whether or not they purchase insurance cover, but that should be an informed decision based on the agent having outlined the potential risks and the availability of specialist cover. The message is that every let property is a financial asset and the value of that asset could be jeopardised without proper protection. Most landlords understand the need for buildings cover, but may not appreciate all the risks they face or the cover available to them.
Tenant-related problems are often where they need the most help. Despite meticulous reference checks, there is no guarantee that a tenant will not default on their rent due to a change in employment status or personal circumstances. At Linda Saunders Lettings we offer the reassurance of a 'Rent Guarantee Scheme'. Call us to find out more.

ARE WE REALLY LIVING IN SHOEBOXES?

2012-01-10T08:23:00.000-08:00

Some new houses are so small that RIBA has accused developers of building and selling ‘shoeboxes’ for families to live in.
Business leader Sir John Banham, a former director-general of the CBI and former chair of the Tarmac group, is to lead major new inquiry into British homes as the Royal Institute of British Architects (RIBA) launches its HomeWise campaign.
The average new three bedroom home currently being built by the UK’s top house builders is around eight per cent smaller than the basic recommended minimum size, leaving thousands of people across the country short-changed. This squeeze on size is depriving thousands of families the space needed for children to do homework, adults to work from home, guests to stay and for members of the household to relax together. The findings feature in Case for Space, new research by the Royal Institute of British Architects (RIBA).

BUY TO LET UNDER THREAT!

2011-12-22T02:10:00.000-08:00

Proposed EU regulation on mortgages, designed to combat fraud, which is due to be voted on early in 2012, could change the way some buy-to-let lending is regulated to bring it into line with rules governing conventional residential mortgages.

Critics are expressing fears that the new rules could seriously reduce the number of buy to let mortgages that are granted. This is because lenders would be required to test affordability using standard residential mortgage criteria: relative size of deposit, existing income, other debts, but they would not be able to include potential rental income, meaning that a landlord investor would have to be able to afford to pay the mortgage on the property without receiving any income from it.

Everyone will appreciate the need to reduce fraud but is this yet another hammer to crack a nut? In a country populated by large numbers of frustrated first-time buyers forced into the private rented sector, high rents with longer tenancies, low property purchase prices and better returns than other investment opportunities, the buy to let sector is growing, and the number of mortgages servicing it is growing too.

In the third quarter, buy-to-let lending as a proportion of total lending hit its highest level in three years, jumping 16 per cent in value.

HERE IS ANOTHER!

2011-12-12T13:51:00.000-08:00

While I'm in the mood for a moan here is another rip off that affects everyone in the UK. Whilst most households struggle to make ends meet, the cost of what you would term essentials has gone through the roof. These are: -

Food

Fuel

Utilities, i.e. gas, electric etc.

What do they all have in common other than their essential nature? They all make billions £'s in profit and run what can almost be called a cartel. They all second guess what their competitors are going to charge and basically pitch their prices accordingly. The public, that's you and me think we have a choice but in reality we do not. The costs are almost identical amongst all the players in the three industry sectors above.

The government know this but seem powerless or unwilling to do anything about it. The implications of an ever higher % of houshold income being taken up on these is that the economy fails to grow. Why?

Because whilst we spend more and more on these items we are unable to buy other products from other companies. Products and companies that would help the economy grow and help the country emerge from the recession.

It ain't rocket science but it may as well be!

THE GREAT RIP OFF!

2011-12-12T13:24:00.000-08:00

As you go through life you soon realise that quite often things are simply not fair. Here is the latest one. Rightmove. You know the property portal that thinks it is so big it feels it can basically do what it wants. They have just written to me advising of an iminent 10% increase! 10%! That is simply taking the proverbial and they know it.

What makes it worse? If you are a corporate estate agency you only pay c£200 per branch compared to nearly £700 for an independent agent. How can this be fair? Well it obviously isn't and creates an unlevel playingfield. Of course it is easy to understand why they do it. Imagine this. Imagine the two largest agents in the UK walked away from rightmove, all the independents would soon follow. Where would that leave our arogant friends at rightmove then? So effectively the majority pay through the nose to subsidise the BIG two and we imprision ourselves in the process, locked into a catch 22 situation. Very few agents have the courage to make a stand and turn their backs on rightmove fearing their competitors will use it against them. Well maybe this is just a price rise too far for many, and they will do just that. Here's hoping.

Twelve months ago we started to advertise our properties on Find a Property and Prime Location. An analysis of the 12 months shows that we received basically the same number of leads from them as we did form rightmove. Therefore what is there to fear? If agents in the UK spent more time co-operating instead of tucking each other up they would all be much better off. You only have to look at the model in the states for example.

Council Tax Rebanding; Save £1000's

2011-12-08T14:49:00.000-08:00

Up to 400,000 homes are in the wrong council tax band. Yet in ten minutes, at no cost, you can check 'n' challenge your banding, not only potentially slashing what you pay now but getting a backdated rebate stretching as far back as 1993. Thousands have already tried this and succeeded, and stories of payouts in the £1,000s are commonplace.

Let's Move With the Times....

2011-12-08T14:37:00.000-08:00

HOME ownership has fallen to its lowest level in 20 years – and the number of rented homes is on the rise, prompting a call from the British Property Federation “a more professional rental market”.
According to the English Housing Survey, commissioned by the Department for Communities and Local Government just 67.9 per cent of English households own their home, the lowest percentage since 1991,
There was a decrease in the number of owner-occupied households from a peak of 14.8 million in 2005 and 2006 to 14.6 million in 2008-09.
In contrast, the number of households renting privately has surged by one million since 2001, from 2.1 million to 3.1 million in 2008-09.
Private rented sector housing has accounted for nearly all household growth over the past decade, with 1.1 million additional households in the sector compared to 2000. The sector is up from 13.9% of households in 2008 to 14.2% in 2009.
There are almost as many families with children in the private rented sector as there are in the social rented sector, with the latter dominated by retired people and lone parents.
Only 11 per cent of private renters are dissatisfied with their accommodation, compared with 16 per cent of social renters and there are twice as many people in full time work in the private rented sector as in social renting.
The British Property Federation now wants to see a more professional rental market emerge like that enjoyed by Europeans and Americans, where large rental blocks exist. The industry body says this will improve quality and choice.
Liz Peace, chief executive of the BPF, said: “We’re seeing massive demand for private rented housing in the wake of crippled mortgage markets and soaring levels of people who cannot afford to buy.
“The Government must do something to deal with this demand or we will end up with the crisis getting far worse.
“We should look at the housing models adopted in the USA and Europe where renting is socially acceptable and standards are higher because their governments have embraced professional corporate landlords.”

ASKING PRICES FALL!

2011-11-25T01:38:00.000-08:00

Rightmove’s November House Price Index found that the average asking price of a property coming to market tumbled by £7,528 (-3.1%) over the past month, which is the largest monetary fall since December 2007.The House Price Index also found that the Eurozone crisis appears to have ‘spooked’ sellers with new listings down 13% on the previous month to the lowest November level since the credit crunch.

CALL TO INVESTORS

2011-10-25T07:52:00.000-07:00

There is now a cronic shortage of property to rent in the town following the opening of the Morrisson Distribution Centre. This has seen a massive influx of workers relocating from other depots who have taken most of the available stock of housing. This is good news for landlords in so far as rents have also increased as a consequence. We believe there is an even larger influx of workers due in February which gives you just about enough time to snap up some property bargains to rent out. Check out our website.

Market Update

2011-10-18T05:16:00.000-07:00

Fewer vendors put their homes up for sale during September, as fears over the economy continued to impact negatively on the housing market, according to the latest UK Housing Market survey by (RICS)

MORE DOOM & GLOOM!

2011-08-23T01:16:00.000-07:00

The latest LSL Property Services / Acadametrics House Price Index for July 2011 reports that house prices in July fell by only 0.1%, but reach their lowest level since December 2009 following a 3% drop in Q2 2011. Transactions are down 5.9% year on year, as cheap mortgage deals fail to stimulate demand. Amongst the regions, London alone has seen consistent price growth in the last four years.

SHORTAGE OF RENTAL PROPERTY

2011-07-19T01:23:00.000-07:00

Research into the private rented sector by the Association of Residential Letting Agents (ARLA) says an undersupply of good quality property is threatening the UK rental market.According to ARLA, the imbalance of supply and demand is continuing. During Q2 2011 three quarters (74%) of members reported that there were more prospective tenants than properties available - a figure that jumps to 82% in central London.By comparison, just two years ago the number of members reporting an undersupply of rental homes in the UK was 10%, and 8% in central London.

Rent Rise!

2011-07-02T03:58:00.000-07:00

Quarterly research showed that 13% of landlords surveyed have increased rental rates across their portfolios by between 2% and 4% - with 4% saying they had increased rental income up to 6%. Of those surveyed, 8% said that their rental income had risen by 2%, with 4% saying it had increased by more than 6%. There is a clear difference between the results from smaller scale and professional landlords. Nearly one in five smaller scale landlords (19%) reported rising rental income during the quarter, but the overwhelming majority (75%) said rents remained unchanged. For professional landlords, however, it is a different picture, with almost a third (32%) saying their rental income had increased in the first quarter and only 2% saying that it had decreased in Q2.

2011-05-24T01:32:00.001-07:00

The Joseph Rowntree Foundation (JRF) has called for urgent and fundamental reform of the housing market after the failure of policy-makers to learn the lessons from previous boom and bust cycles, which have led to the UK having one of the most persistently volatile housing markets in the world.Convened by JRF in 2009 and consisting of interdisciplinary experts, the JRF Housing Market Taskforce has undertaken a system-wide review of the UK's housing market. Its report recommends a series of policy options that together would help create a more stable housing market, to protect existing home owners and enable more new households to get onto the property ladder.Recommendations to help reduce house price volatility include:* An increase in the supply of housing Supply is central to managing house price volatility. The scale of the increase required, however, means that this alone will not reduce volatility in the market.* The reform of both Stamp Duty and Council Tax These existing taxation tools could help to reduce house price volatility in the shorter term. Both Stamp Duty and Council Tax should be linked to the real value of a property and regularly updated. o Stamp Duty: the current 'slab' structure of stamp duty should be replaced with a 'slice' structure whereby only the value that exceeds the threshold is taxed or taxed at a higher rate (similar to income tax). Thresholds should be uprated regularly in line with consumer price inflation.o Council Tax: in the short-term, the number of bands should be extended. In the medium term, there should be a move towards a system based on a fixed percentage of a property's value. In the long-term a national property tax could be created with safeguards for low-income households.* A better safety net for homeowners based on shared responsibility between lenders, borrowers and Government The current safety net for homeowners is inadequate and has required extensive Government intervention during downturns. o Lenders need to lend responsibly, achieving the right balance between access to mortgages and the risk of default. o Active steps need to be taken to improve borrowers' financial capability to ensure they have sufficient information and skills to make informed choices about what they can afford. o A partnership insurance model with contributions from borrowers, lenders and government should also be adopted to meet mortgage payments when borrowers lose income through redundancy or illness.Speaking today at the launch of the report, Julia Unwin, Chief Executive of the JRF, said: "Since the 1970s, there have been four boom and bust cycles in the housing market. This persistent instability distorts housing choices, inhibits house-building, and drives arrears and possession rates, putting people at great risk, and creates wealth inequality between the generations."We have set out to provide a series of policy options that together would help provide long-term stability in the market. I urge policy-makers to look at these and act now, because the seeds of the next housing boom have already been sown."

Market Update

2011-05-17T01:40:00.000-07:00

The Halifax House Price Index for April 2011 reports a -3.7% annual fall in prices. During the last quarter prices fell by -1.2% and over the last month prices were down by -1.4%. The average house price is now £160,395. "The latest figures show that the underlying trend in house prices continues to be one of modest decline. Prices in the three months to April were 1.2% lower than in the previous three months. There was a 1.4% fall in prices in April following no change in March."Weak confidence amongst households, partly due to uncertainty over the economic outlook, is constraining housing demand and resulting in some downward movement in prices. Signs of a modest tightening in housing market conditions, a relatively low burden of servicing mortgage debt and an increase in the number of people in employment are all likely to be providing support for house prices, curbing the pace of decline. There are signs that house sales are stabilising albeit at a level lower than the historical average. I think the only reason prices haven't fallen further is the relative equity of buyers and sellers."

47% Drop in Transactions since 2007!

2011-04-12T01:37:00.000-07:00

Property sales have fallen significantly across England and Wales since 2007 amid a widening North-South housing divide, according to new research by Lloyds TSB. The number of property sales in England and Wales has almost halved over the past three years, but there has been a clear North-South divide with property sales in the South down by 42% compared with a 51% drop in the North. Overall, there were 649,957 home sales in England and Wales in 2010; 47% less than in 2007.

2010 SUMMARY

2011-01-01T11:10:00.000-08:00

Well to some extent it would be true to say I'm glad its over but I fear 2011 could be even tougher for homemovers. With the long anticipated 'austerity measures' kicking in from the coalition government there is a general feeling of uncertainty which basically means people tend to stay put. The last quarter of 2010 saw a significant reduction in new property coming to the market and the early part of 2011 could start to see house prices falling. With a lag between the vendor's and purchaser's expectations on price this makes negotiations very difficult which is precisely why it is important to instruct an agent who is experienced with dealing with these nuancies, it certainly is not all about the fee! There are inevitably agents who will over value and under charge for their services but with the market getting even tougher in 2011 they will probably become victims of the recession.

At Linda Saunders Estate Agents we are always trying to come up with imaginative ways to 'make things happen' to compliment our traditional hard work ethic to estate agency and this winter is no different. We have just announced our WINTER VAT OFFER! We will refund the VAT to clients on completion of their house sale - at the full 20% rate! How good is that? Full details can be found on the home page of our website.

Anyway I would like to wish you all a prosperous New Year and look forward to assisting you soon.

RENT PROTECTION VITAL FOR LANDLORDS

2010-11-02T14:12:00.000-07:00

Linda Saunders Lettings is advising landlords to protect their investment property against inevitable rises in unemployment before it’s too late. The release of the latest unemployment figures (15th September 2010) indicate that difficult times continue to loom for the UK economy, potentially affecting thousands of private landlords.
Whilst the overall employment figure dropped slightly in the three months to July, the number of people out of work and claiming benefits actually rose by 2,300 in August according to the Office for National Statistics.
Economists now fear that the UK’s labour market will be unable to sustain the government cuts recently announced. There is renewed concern that previously safe jobs in the public sector will be slashed, meaning that even those in what were once considered stable jobs could find themselves out of work in the months to come.
Linda Saunders Lettings is urging landlords to consider safeguarding their rental income against their tenants becoming unemployed and unable to meet their rental payments, and consider purchasing a rent protection policy.

NEWSPAPER ADVERTISING

2010-10-31T14:36:00.000-07:00

Those that know me will be aware of my views with regard to newspaper advertising. For those that don't I believe it is a waste of time and more importantly money! In the 21st century when we have the internet, smartphones, iPads and so on why do agents still insist on clinging onto the 'old ways'?

Well I have a theory. It is probably a combination of reasons ranging from habit and fear through to insecurity and an inability to think outside the box. Truth is it is also because estate agents can't agree on a thing. Even if you could get them all to agree not to advertise in the paper press one of them would break the agreement to gain some kind of advantage and then you're back to square one.

I know vendors expect to see their property in the paper but that's only because that's the way it has always been. Clear and logical reasoning would soon have them on side and as for purchasers well they nearly all trawl the internet rather than get their fingers covered in ink.

A few towns around the country have managed it but they are the exception. Until then we will continue to pay the local paper press tens of thousands of pounds a year which could either improve agent's bottom line or help reduce fees by passing the saving on to their customers. Mind you those awefully nice people at the newspaper to drop a bottle of wine off at christmas so that's alright then.

SEPTEMBER UPDATE

2010-10-18T07:44:00.000-07:00

After a pretty gloomy August, September proved to be a very busy month for both sales and rental. In fact it was our best sales month for about 2 years. This runs counter to the negativity in the general press although it is probably best to take what they say with a pinch of salt as their motivation seems to be to sell papers rather than share the news. That's not to say that we are out of the woods as I fear that the autumn and winter could prove very difficult for home movers indeed. New instructions have dropped off in September as people are waiting for the 'spending review' by the government mid October.

As for rentals the shortage of property to rent is forcing rental prices up which is obviously good for landlords but not tenants. The government needs to stimulate the private rental sector as a matter of urgency in order to avoid a severe housing shortage. My advice is if you have money sat around buy a 2 bedroom property to rent out as there are some real bargains out there.

KEEP TRADE LOCAL

2010-09-12T11:51:00.000-07:00

You may have noticed our little campaign on our website regarding 'keeping trade local'. Our feeling is that in these days of 'homogenous' high streets full of the same national companies that local people should do their best to keep money in the local economy by buying locally. Profits that go to the coffers of national chains don't directly benefit the local economy. We can all do our bit by thinking about who we purchase from beforehand. Be it your local butcher, green grocer or for that matter estate agent! For our part, we purchased our new all singing and dancing printer from a local company (SDS Ltd) who employ local people but who also provide a more personalised service based on cultivating long term relationships. We do the same with our cars and so on. The point is the more money that stays in the local economy the more the everyone locally benefits.

"What's the Market Doing?"

2010-08-30T12:27:00.000-07:00

Here we go again! The press are at it again, talking the market down by using such emotive words as 'slumps' and the like. This in turn encourages many folk to ask me "what is the market doing?". Well of course the thing is there isn't one housing market although the press would have you believe there is. There are thousands of 'housing markets' in the UK each town is different. The housing market in London is different to the housing market say Bridgwater or Penzance and so on. To talk of a single housing market is completely misleading. So how can you find out what is happening in your housing market? Well the answer is obvious, talk to your local housing expert, your local estate agent. They should know exactly what is happening in their market, what is selling what isn't where the demand is etc. So the next time the national press start talking about the 'housing market' do yourselves a favour and don't listen.

BREAKING NEWS

2010-08-14T10:46:00.000-07:00

Firstly I have at last had all my operations, it only took 24 weeks from the accident but losing me in the system for 13 weeks didn't help. I've started back to work part time, just a few hours a day for now. It soon feels like you've never been away!

There has been some changes to our lettings business. As per our original plans once our lettings business reached a certain size we split it down the middle to allow Andrew Lee to carry on and develop his business how he wants and we for our part would do the same with our half. From our clients point of view very little changes, we will continue to provide excellent value for money allied to unrivalled customer service.

I would like to take this opportunity to wish Andrew all the best for the future.

UPDATE

2010-05-30T03:55:00.000-07:00

Well the good news is that I've had the operation to fix the lung and ribs even if it was cancelled at the last minute and only took place on Tuesday. As you can imagine I'm feeling awful at the moment as the pain relief is gradually reduced. The three chest drains have been removed so its a case of regaining my strength so that I can come home and wait for the arm operation. At least I'll be more capable of doing things without running out of breath within a few minutes. Once again I'd like to thank everyone who expressed consern and passed on their good wishes. See you all soon.

HIP, HIP, HOORAY!

2010-05-20T07:58:00.000-07:00

At last Home Information Packs or HIP's have been scrapped. A pointless piece of tampering by the last government that put a final nail into an industry already sliding into recession. This is what you end up with when you meddle in things you don't understand. A cynic might conclude that they only introduced it to cash in on a busy housing market in terms of VAT receipts, but even then they missed the boat. For sure it is sad for those who have lost their jobs, but the writing has been on the wall for a long time. AHIPPS the association of course talk it up but then they would anyway. Any resultant reduction in timescales during the HIP era was probably more to do with the reduction in transactions and the desire to get income in as soon as possible.

APOLOGIES

2010-05-09T03:22:00.000-07:00

Apologies for the seemingly long gap since my last blog but as some of you know but many will not I unfortunately fell down the stairs at home 11 weeks ago. I broke 4 ribs, damaged my lung and broke my upper arm, non of which have mended and require two operations.The first of these is on the 20th May, that'll be the lung and ribs, the other when I have recovered from the former. It will require a bone graft from my hip so I'm not looking forward to that! I would like to take this opportunity to thank some of my competitors in the town for their kind thoughts and wishes, they were much appreciated. I'll be back to update you soon.

WHAT NEXT?

2010-02-09T05:52:00.000-08:00

What next in the land of property portals? It seems that few agents are comfortable with the domination of rightmove in the sector but rather typically don't know what to do about it. It seems that everyone wants to get involved in property in one form or another, even Tesco tried it. They may be Gorillas in their own field but ended up looking like Chimps when they attempted to 'sell houses'. The problem is too many people think it is an easy business when in fact it is a lot more complex than most think. Add to that the emotion involved in the transaction and there are times when it becomes a terribly difficult job. Now Google think they can revolutionise the way we buy and sell homes but who are they targeting? In a sense it doesn't matter who tries to break rightmove's domination. The thing about estate agency is it as a very fragmented industry and trying to get agents locally to come to a consensus on something is nigh on impossible so getting them to agree on something nationally is virtually impossible. Until then whether we like it or not rightmove have got us right where they want us.

Want a Chance to Sell Your Home for FREE?

2010-01-31T01:22:00.000-08:00

Yes that's right, we offering you a chance to sell your home for free. No gimmicks and no catches. Details, term and conditions can be found on our website. Simply, you instruct us to sell your home in February & March and you will be entered into a draw. If your name is pulled out of the hat, then you will not be charged a penny if we sell your home. We are arranging for a local lawyer to oversee the draw to ensure fairness and that everything is above board. So what are you waiting for?

New Year - New start

2010-01-22T02:00:00.000-08:00

Well it has been an interesting start to 2010 to say the least. The normal rush of activity failed to materialise due to the cold weather but at the time of writing this has been replaced by the usual grey rainy days we come to expect and with it an increase in the number of enquiries to value peoples homes. In due course this should hopefully feed through to instructions as people's thoughts turn to moving home. The recent improved availablility of 90% mortgages will hopefully encourage more people to move home.

So what have we been doing whilst things are quiet over the festive period? Well a quick look at our homepage will reveal some interesting developments. We have added some additional services to our offering such as property maintenance, will writing service, free legal help line and an interest rate check service. We felt these are all areas closely associated with the home buying/selling process and therefore sit comfortably with what we do. We want to add value to the process and our customers experience of dealing with us. Did you know for example that 60% of us do not have a will!! I'm sure that if it was better understood exactly what the implications of this were that more of us would get one done. This is simply one example of the ways we want to help our clients. We have negotiated a special price with a firm of local lawyers, so that's even better news.

Coming soon, is our on-line customer survey. We are really keen to find out what people think of us! I know this is dangerous ground but if we can improve our service in any way then we want to know about it. Too many organisations talk customer service but very few actually walk it.

Prices are going up! Apparantly

2009-12-17T06:37:00.000-08:00

The press are at it again. They helped to talk us into a recession and now they're talking things up. According to most 'reporters', house prices are galloping upwards again! Of course this raises vendor's expectations and before you know it you have a situation where some vendors suddenly think their property is worth more than it is. Stalemate! Why the media in this country can't simply leave everything property related alone I really don't know. Let's face it there was a time when almost every programme on TV was about buying, selling, relocating, building or investing. They made it sound really easy - a sure fire way of making money. Of course this fuelled the boom particularly in the 'buy to let' market which not only fuelled house price inflation but encouraged many to jump in when they should not have. We desperately need to get back to a situation where we all view our homes as a place to live and not some kind of cash cow. This would certainly help to iron out the peaks!

ACT SOON

2009-09-20T06:30:00.000-07:00

It has probably escaped the attention of most people but something happening in January could have a negative impact on all of us but particularly those of us in the housing sector. Any ideas what it could be? No? Well it is the end of the temporary VAT and STAMP DUTY initiatives. VAT will revert to 17.5% thus increasing the cost of all the goods we purchase and the STAMP DUTY threshold will reduce from £175k to £125k. The latter in particular could have a significant impact upon house sales and therefore I would suggest that if you are considering moving it may be wise to do so this side of the New Year. We would be delighted to give a FREE market appraisal of your property so please give the agent with their finger on the pulse a call on 425242!

Boom Times - Well Almost

2009-08-14T11:35:00.000-07:00

The last five weeks has seen us put fifteen sales together which is a big turn round from the levels seen for the past year or so. The next challenge however is the general lack of new instructions coming to the market although the upside of this is that prices are holding up better as supply and demand become more aligned. Of course as instructions become scarce some agents revert to type and can't help bad mouthing their competitors. Like the agent based very close to our branch who recently told a prospective vendor that all the "solds" on our website were old ones. Of course that agent wasn't to know we had just put FIFTEEN sales together espcially since they haven't figured in any of our chains! And at least we have a website of course. So the good news is that property is moving at last so if you want to move and you are able to move just give us a call and deal with nice people.

'BOUNCING CAT'

2009-07-05T03:50:00.000-07:00

The "bouncing cat' refers to the small rise when something hits the bottom before it then continues its drop. There is plenty of speculation regarding the recent improvement in house sales as to whether this is a genuine increase or simply the 'bouncing cat' scenario. Of course the press, as usual, are quick to jump on a few figures and are starting to talk of massive increases in the number of houses sold and even an increase in house prices! They helped to talk us into the recession so I suppose it is only right that they help to talk us out. The truth is there has been an improvement in the numbers of houses sold but the vital component is still missing, FIRST TIME BUYERS! At a time when property is the best value it has been for a decade it is criminal that the lenders then insist on at least a 15% deposit in order to obtain a decent interest rate. So for the poor first time buyer it a case of swings and roundabouts. Of course the lenders defend their stance by stating they are concerned that prices still have a way to fall but of course the reason they are falling is the lack of finance available. So they are in fact the cause of the depression in house prices not the victims. One minute they would lend to virtually anyone with a pulse and now they are turning away perfectly good clients. Why can't they simply adopt the middle ground thus ensuring that this is a sustainable increase and nothing to do with cats?

'SWINEGATE'

2009-07-05T03:40:00.000-07:00

Well I’m old enough to think I’ve seen it all and that I live in a time and a world where you think nothing could surprise you anymore when along comes ‘swinegate’.
At a time when most of the population are struggling to simply survive we discover the shady truth about our politicians. Although by no means all, many have been gorging themselves at the taxpayers’ expense. Whilst much of it is legal it is certainly immoral and don’t forget who made these rules in the first place! Others of course have been criminal but I doubt whether the establishment have the stomach to prosecute anyone over it.
So what exactly have they been doing to help ‘ordinary’ people over the last year? They pumped billions of pounds of our money into the corrupt and immoral banks that promptly used it to support their own reserves rather than pass it onto the public in the form of much needed loans. As a consequence businesses close down and people lose their jobs and eventually their homes.
The budget was a complete and utter non event. I’d call it a joke only it isn’t funny. It did nothing to stimulate growth and even less for the building/housing market which is the engine room for Great Britain Limited.
As for the ‘benefit culture’ they have encouraged and presided over for the past 14 years, I won’t even go there!
Of course we now know why they have been completely inert. They have been too busy making sure they have claimed for every last ridiculous thing they can think of instead of running the economy. What a legacy!
The real question is, ‘who can we trust? The Royal Family fell out of favour with the public a little over 10 years ago, the bankers and politicians have now fallen from grace and can’t be trusted, and there are no ‘institutions’ left you can believe in. What a mess.

Landlord/Investor Special

2009-03-20T07:41:00.000-07:00

Continuing evidence of our commitment to providing value for money, we are offering to find tenants for free to anyone buying a property to let out through us. We have many properties eminently suitable for renting so take a look via the search function on our new website. So to recap then, if you purchase through Linda Saunders Estate Agents we will find you a tenant for free. Of course they will be vetted in the usual way. Remember, "not all agents are the same!"

Make Your Money Work Harder!

2009-03-10T09:31:00.000-07:00

Whilst it is generally agreed that this will be a tough year for estate agents, if not the toughest ever, the one silver lining could be that many investors are deciding that property is a better home for their money than their Building Society. Even if property isn't capital secure returns in excess of 5% are possible and lets face it property hasn't been this good value for a long time. If you are worried about taking the plunge please read my previous Blog. If you are taking a long term view its a pretty safe bet. We have a large selection of property suitable for letting out, and we can offer a fully managed letting service at just 5% + VAT. Don't delay or some else will snap up the bargains!

It's All About Timing

2008-12-19T01:16:00.000-08:00

The Credit Crunch has brought home to us important lessons about asset values, how they can be over-inflated and how rapidly these can be destroyed.

With commercial property values likely to decline by 50% peak to trough, and likewise at least 30% for residential - we have not seen the full decline yet.

When you make an investment in an income producing property your risk is not if the value will fall—we should know that values go through market cycles—it’s about how soon you will need to sell.

Buy now and be forced to sell in 6 months and your risks are very high, but sell in 10 years and your risks are reduced to virtually zero, with the prospect of very good growth.

What is important is the intrinsic value when you buy - the discounted cash flow of a steady future income stream.

Four key provisos to investing now:
- Research, research, research.
- Rental demand—do tenants want your property?
- Buying value—buying at the right price in relation to rental returns.
- Finance—securing adequate funding and being able to service the debt

In the commercial sector rents are likely to come under pressure as businesses fail and voids increase. Covenant strength is vital.

In the Private Residential Sector demand it patchy. Although it is holding up well, and the rental market is generally buoyant, there’s oversupply in some areas, and new build apartments in some large developments can be problematic at any price.

There’s value out there if you have the funds. Repossessions are going through auctions at distressed prices. Distressed sellers are accepting below market prices, and Sale-and-Rent Back (now to be FSA regulated) is feasible.

The student and HMOs markets are healthy income producers if you are prepared for the extra management involved, but the new Local Housing Allowance rules are putting a cloud over Housing Benefit.

Good news for investors with mortgages, especially trackers, as interest rates have fallen by 2.5 percentage points to 2% since November, with the prospect of further falls. However, the key interbank rate (LIBOR) is still 1.25% above base and good finance / mortgages deals are particularly hard to get as supply has declined.

Fear and Greed are reputedly the chief motivating factors behind the investment psyche.

These emotions are very powerful and following the crowd is a natural instinct, but the contrarian approach—going in when everyone is coming out and vice versa—often proves to be the most successful long-term investment strategy.

To follow such a strategy calls for good research, good judgement—knowing when the odds are in your favour—and strong self-belief.

Markets and people’s market sentiment tend to over-react, both on the up-side, the bubble, and on the down-side, despair.

The danger at a time like this, when prices are still falling, is going in too soon.
Catching a falling knife, in the investors’ parlance, is where you can get hurt in the process.

Is Now The Right Time To Buy?

2008-12-10T08:07:00.000-08:00

As you can imagine I have been asked this many times lately. The answer is generally YES!

If you are selling and buying in the same market it makes no difference. What you lose on your sale you should more than make up for on your purchase.

If you are a cashbuyer then you should be able to negotiate such a good price that you will already have factored in any future reductions in property values.

Of course there will be losers unfortunately, those that for personal and/or financial reason have to sell and sell quickly. As for the rest of us who aren't moving then the value of our home is pretty irrelevant. My advice is ignore all those negative reports by journalists who only make things worse. Have you noticed that they devote masses of column inches to bad news but hardly any to good news? Strange that.

Hello

2008-12-10T07:32:00.001-08:00

Well this is my first 'proper' blog having done a printed blog in the newspaper for a few years now. I hope you will find what I have to say of interest. My aim is to be informative, particularly about the house buying process but perhaps controversial at times as well. At the end of the day that will be for the reader to decide.