Northfields

Estate Agency Report Finds Greater Satisfaction with Service

 A recent Office of Fair Trading Report has found that satisfaction with estate agents has improved.

After undertaking a year long study of estate agency, The Office of Fair Trading (OFT) has found that the industry is in reasonably good shape as a whole.

Although, the study reported that a third of sellers were unhappy with their agents' fees, overall most buyers and sellers were satisfied with their estate agent's service.

The National Asscociation of Estate Agent's (NAEA) of which Northfields is a member, has criticised the report for failing to suggest "robust" protection for buyers and sellers.  Peter Bolton King, Chief Executive of the NAEA has said that "The NAEA would like to see a greater level of regulation to ensure that professional, qualified estate agents are not confused with agents that, all too often, fail to meet the basic professional standards we would expect from our members."

The more critical aspects of the OFT's report found that:

• price competition among estate agents is still weak

• existing laws on estate agency make it hard for competitors to use the internet to set up business and drive down prices.

The OFT found there was still little competition between "traditional agents" and the fees they charge to sellers, but pressed the point that it had found no evidence that estate agents colluded locally to keep up their commission rates.

As part of its study the OFT studied internet property sites, price competition between agents, and consumer protection.

"Encouraging new business models, online estate agents and private seller platforms could put useful competitive pressure on traditional models and lead to better value for buyers and sellers," said John Fingleton, chief executive of the OFT.

"The government can help this process by updating legislation and making sure regulation only applies where it is essential to protect consumers."

The OFT said that existing legislation relating to traditional estate agents was "comprehensive and wide-ranging, and that further regulation was unnecessary".  A point of view that is in stark contrast to the point of view of the NAEA, "...once again the OFT has categorically failed to see that better regulation of the home buying and selling market is required. Buying a home is often the largest single transaction of a person’s life and it is disappointing that the OFT has not thought it appropriate to acknowledge that a robust and appropriate level of consumer protection is needed." said Peter Bolton King.

“This is in stark contrast to the views of the Department for Communities and Local Government who are proceeding with the full regulation of lettings agents. This inconsistency is very difficult to understand given that the same agents and firms often deal with both sales and lettings."

At the moment anyone can open an estate agency, without any qualifications or permissions.  If that estate agent subsequently break the laws about describing a property incorrectly, handling a client's money, not declaring an interest in a property, or engage in some other form of dishonesty then they can be banned from trading.  It seems unbelievable that someone must first be taken advantage of, before regulatory bodies can become involved. 

So how do you ensure that you are amongst the 88% of buyers and sellers in this report who were satisfied with their estate agent's service?  Choose an estate agent who is a voluntary member of a regulartory body like the NAEA, the National Approved Lettings Scheme or the Property Ombudsmon.  Better yet, choose a member of those regulatory bodies who regularly wins awards industry awards.  Let a qualified and regulated agent handle the transaction on your biggest asset - your home.  Call Northfields today for your free valuation on 0208 840 6666.

Northfields in the News - How Northfields Keeps Staff Motivated in the Financial Times

Northfields was recently asked by the FT to comment on how we keep our staff trained and motivated, especially in the face of the recent recession.  Our Managing Director, Richard Palfreemen explains "Having been through the last recession, we probably acted faster than other people,” he says. “We have got through it by focusing on training and development, but also by trying to make it fun and buzzy.”  Click here to read the full article.

Feel like working in a motivated environment?  Click here to see Northfields's latest job vacancies.

Energy Performance and Saving you Money

Energy Performance Certificates (EPCs) give information on how to make your home more energy efficient and reduce carbon dioxide emissions. All homes bought, sold or rented require an EPC. EPC's look very much like the energy efficiency rating charts on home appliances and work in a similar way.

Example of energy efficiency rating graph for homes

EPCs carry ratings that compare the current energy efficiency and carbon dioxide emissions with potential figures that your home could achieve if changes outlined in the full report were undertaken.

The rating measures the energy and carbon emission efficiency of your home using a grade from ‘A’ to ‘G’. An ‘A’ rating is the most efficient, while ‘G’ is the least efficient. The average efficiency grade to date for British homes is 'D'. All homes are measured using the same calculations, so you can compare the energy efficiency of different properties.

The recommendation report

As a tenant or potential home buyer you can ask to see the full EPC report.  This report details recommendation  to help reduce the amount of energy you use and your carbon dioxide emissions. The report lists:

• suggested improvements, like fitting loft insulation
• possible cost savings per year, if the improvements are made
• how the recommendations would change the energy and carbon emission rating of the property

You are not required to act on the recommendations in the report. However, if you decide to do so, it could not only improve your green credentials but it could help you to save money and make your property more attractive for sale or rent by making it more energy efficient.

So what actions could you take to start saving the environment while saving money at the same time?

It can be daunting to look at your property and wonder where to start to make your home greener.  Why not make 2010 a bit greener (and cheaper) by starting with these points:

1. Top-up your loft insulation - The recommended minimum is 250mm in the loft, but there's often room for a top-up - especially during this cold weather.

2. Fix any dripping taps - Did you know that a single tap dripping once a second could waste 1400 litres of water in a year? It's not just a waste of precious water, it's a waste of carbon too as processing and distributing the water we use in our homes has a high carbon footprint. A new washer for the tap costs as little as a pound.

3.  Stop drying clothes on radiators -  Drying wet clothes on the radiator can reduce the amount of heat that circulates in the room - and cause damp. Try using a pull-out washing line that you can extend over the bath tub. It only cost a couple of pounds and it means that when it's too cold or wet to dry clothes outside you can still dry them naturally and the bathroom extractor fan should prevent any damp.

4. Defrost the freezer -  Before doing your weekly shop when the fridge is relatively empty, remove all the food and put it in a cold box.  Open the fridge and let it defrost.  A frost free freezer will run much more efficiently. A full freezer also uses less energy than an empty one, so don't take too long to fill it back up again.  While you are at it, hoover the coils on the back of the fridge to keep things running efficiently. 

5. Switch your GU10 spotlights to LED bulbs - If you have spotlights in your home you can convert to the 7-11w energy saving ones, but the new Envirolight LED ones are only 2.6w so we can now get the same light for 75% less electricity.

6. Complete the Home Energy Check on the Energy Saving Trust website, click here to see this tool which enables you to calculate the carbon footprint of your home. It also offers free independent advice on how you can save even more energy this year.

7.  If you have recently bought or rented a home, check out the EPC report and start tackling the recommendations, one at a time. 

Although making our homes more energy efficient may end up well down the list of must-do tasks, when you do tackle even one recommendation either contained in the EPC report or on the list above, you'll get a lift in spirits and a lift in income.  Not to mention that any changes you make, may be of great benefit when you come to sell or rent the property in future.

If you are thinking of selling or renting a property and need advice or help in arranging for an Energy Performance Certificate, call us on 0208 840 6666 and we would be happy to arrange one for you.

How Many Properties Do You Feel that You Need to View Before Making a Decision?

At Northfields we find that these statistics change according to the state of the market.  At the onset of the credit crunch the number or properties people viewed before offering went up quite a bit, but as the market is now experiencing a shortage of available stock to sell and a pent-up demand from buyers, many people have to make an offer relatively quickly or find themselves losing out to another buyer. 

One good question to ask yourself after viewing a property is:  If my estate agent phoned me tomorrow and told me that the property had gone under offer, how would I feel?  If the answer is devastated, then maybe you need to make your decision quickly.

Five Flats to View in Ealing, W5

1.  Central Ealing Location

Tucked in quiet residential streets but close to Ealing Broadway and Ealing Common with the convenience of transport, restaurants and shops

The Property for sale:  2 Bedroom, 2 Bathroom Flat

Where:  Grange Park, Ealing W5

The Price:  £299,950

Click herefor more photos, floorplans and information or to book your viewing online.

2.  Bang on the Money

Competitively priced flat close to Hanger Lane tube - only 30 minutes into Central London.  Plus, no onward chain.

The Property for sale:  2 bedroom third floor flat with communal gardens

Where:  Nelson House, Western Avenue, W5

The Price:  £249,950

Click herefor more photos, floorplans and information or to book your viewing online.

3.  Popular Pitshanger

A London address with a village feel.  Plus this flat is bright as a button with lots of natural light.

The Property for sale:  1 bedroom top floor flat

Where:  Queens Walk, Pitshanger, W5

The Price:  £249,950

Click herefor more photos, floorplans and information or to book your viewing online.

 

4.  Unchained Melody

This purpose built two double bedroom flat is being offered for sale chain free.

The Property for sale: Two bedroom purpose built flat

Where:  Little Ealing Lane, W5

The Price:  £275,000

Click herefor more photos, floorplans and information or to book your viewing online.

5.  Up the Garden Path 

A two bedroom flat in South Ealing with its own large private garden.

The Property for sale:  Two bedroom flat with a share of the Freehold

Where:  Birkbeck Road, W5 in South Ealing

The Price:   £2896,950

Click herefor more photos, floorplans and information or to book your viewing online.

Want to see more properties for sale in Ealing, W5?  Click here to see what is available or call our sales team now to register and find out what is coming onto the market before anyone else - call on 0208 840 6666.

Ask the Agent: Do I Need a Gas Safety Certificate?

If you are a landlord then you need to provide your tenants with an up-to-date Gas Safety certificate.

By law, landlords must have all gas appliances serviced regularly (normally once a year) by a Gas Safe registered engineer. The Gas Safe registered engineer will provide a Gas Safety certificate upon completion of the check.  The engineer will check the appliances for the following:

• checking the flue or chimney to make sure the products of combustion (fumes) are being safely removed to outside.
• checking there is an adequate supply of fresh air so the gas burns properly.
• checking the appliance is burning the gas properly.
• checking all safety devices are working properly and shutting the appliance off if a fault occurs
  

The Landlords Gas Safety certificate also contains the following information as a minimum:

• description and location of each appliance and/or flue checked
• name, registration number and signature of the engineer who carried out the check
• date on which the appliance and/or flue was checked
• the address of the property at which the appliance and/or flue is installed
• the name and address of the landlord (and the estate agent handling the property if applicable)
• any defect identified and any action required or taken to fix it
• confirmation of the results of operational safety checks carried out on the appliances

There is a  difference between a gas safety check and a service.  A service includes a thorough clean of the appliance in addition to the appliances being simply checked for safety.

Following a Gas Safe inspection by a registered engineer they will often provide a report which explains what checks that were carried out. This report may be issued as a gas safety certificate, sometimes referred to as a gas safety record depending on the job you have asked them to do. It isn’t always a legal requirement for your engineer to give you this type of information, but many Gas Safe registered engineers will provide it or something similar.

The gas safety information tells you that the gas appliance or gas fitting has been checked to see if it is working safely and meets the correct safety standards. This information may also tell you when you next need to service the appliance, so take note of that date.

It’s important to get your appliances regularly serviced to make sure they are working efficiently and safely. You should also have a gas safety check done on all gas fittings and appliances every year.

If you are a tenant you are entitled to ask your landlord for a copy of the current Gas Safety certificate. This certificate shows that gas appliances have had an annual gas safety check by a Gas Safe registered engineer.

Landlords must also maintain gas appliances, so check the date when yours were last serviced as well.

There are many regulations regarding the proper maintenance of rental properties and many landlords find it difficult to keep up with the changing regulations.  Our Property Management Team can look after the details and legal requirements related to your property for you, call 0208 567 6660 to speak to a member of our team or e-mail propertymanagement@northfields.co.uk  for more information on gas safety certificates.

Ask the Agent: Why do Estate Agents Ask that I see their Mortgage Adviser?

Often buyers will already have a mortgage arranged before they make an offer on a property.  However, many people become confused when agents ask that a prospective buyer see a mortgage adviser recommended by the agent anyway.  Often buyers perceive this as the agent trying to "push" their mortgage adviser.  However, many people may not realise that there are other very practical reasons why you may be asked to speak to a mortgage adviser.

Firstly, any estate agent, like Northfield Estates, that is a member of the National Association of Estate Agents (a professional body with set standards for the industry), is duty bound to put all offers forward to the vendor, and must confirm the offer in writing to both vendor, and the prospective buyer.  This requirement stands whether or not the buyer has spoken to the mortgage adviser recommended by the estate agent.

However, there is a distinct advantage to being vetted by the estate agent's recommended mortgage adviser.  If you do speak to the agent's mortgage adviser, the estate agent can confirm to the seller that you have spoken to their adviser, and that you are a credible buyer, regardless of whether you arrange your mortgage through them.  For obvious reasons, this means that your offer will look more appealing to the seller.

If you have your mortgage agreed in principle from another source, then explain this to the agent, and be prepared to show them or their adviser evidence of this, along with any deposit, as this will send the same positive message of your credibility to the seller. 

However, if you have only spoken to one mortgage lender it may be wise to double-check that you are getting the best possible deal available.  When most people look for car insurance they comparison shop and get at least 3 quotes to check that the insurance is the best available.  The same principle should hold true when looking for a mortgage.  Before committing to the biggest investment in your life you should be certain that there isn't a better deal available. 

When comparison shopping for mortgages you will get the best picture of what is available if you use an independent mortgage adviser.  The "independent" part of the title is vital as it signifies that the adviser is not tied to a limited number of lenders, that is, they can search the entire mortgage market for the right lender and mortgage product for you. 

Northfields Estates is happy to recommend an independent mortgage adviser who will be able to provide a quotation for you.  Make sure you have the best deal and call 0208 840 6666 or e-mail us at sales@northfields.co.uk

The Halifax reports House Prices Rise Another 0.6%

It was much reported in the news last week that house prices have risen for the seventh consecutive month - rising by 0.6% in January compared with December, as reported by the Halifax survey.

Compared to a year ago the average UK home was valued some 3.6% higher in January this year.  The trend that began in 2009 that saw house prices rise 9.9% above the trough of April 2009, has gone some way toward easing mortgage lending criteria slightly.

Like Rightmove however, the Halifax is predicting that prices will stay flat overall in 2010.  A trend that may be supported by this month's rise being the most modest rise that we have seen since prices started to pick up.  The average rise of the previous six months was 1.1%.

The marked reduction in interest rates boosted housing demand where buyers were able to provide a sizable deposit to satisfy the mortgage criteria.  Added to that the low supply of properties available for sale has contributed to rising prices.  The rise in prices has had a knock-on effect of a rise in the availability of mortgages over the last month.

The number of deals on offer is up 20% compared with the start of the year, the BBC reports with figures from financial information service Moneyfacts. Some of these include deals requiring a relatively small deposit of 10%.

However,  the old adage of location, location, location still holds true.  The price of a property is defined by its location and quality, not what the trends seem to suggest.  Northfields Estates is still finding that there are not enough good quality homes available to meet the demand.  Uncertainty in the market and the economy was preventing people with premium homes in good locations from offering the homes for sale.  However, in London where international buyers are buoying up the market, owners of home in prime residential areas can take advantage of their London locations. 

If you would like to see what your home is worth in this market, call Northfields Estates on 0208 840 6666 to request your free valuation or click here to request your valuation online.

January 2010 Property Market Update

Looking back on January 2010 and looking forward to February 2010 there are 5 main reasons to get excited about the property market in the UK according to the most recent Rightmove House Price Index report.

1.  Seller Confidence and Buyer Interest is on the Rise

According to Rightmove there has been a 0.4% rise in sellers coming to the market, causing a big turnaround in figures that were on course for a third consecutive monthly fall. Added to that the Rightmove website recorded its busiest ever week for people searching for new homes. Miles Shipside, commercial director of Rightmove comments: “With home-movers setting new search records on Rightmove and a lack of property for sale, the decision of post New Year sellers to ask for a higher price could be a shrewd move. In spite of problems brewing for later in the year, there are definitely some of the ingredients for a buoyant spring, and a window of opportunity that sellers may wish to take advantage of”.  Despite Rightmove's prediction early in the year that the general election could undermine confidence and cause a dip in the market (historically elections do put a damper on the market), early findings from the latest Rightmove Consumer Confidence Survey seem to contradict that prediction. With the views of more than 30,000 home-movers being recorded, the survey reveals that about 70% of those who intend to move in the coming year do not believe that the election will affect their plans. While it remains to be seen if the home-mover confidence will continue to be high as the elections draw nearer, for those homeowners who have so far held off selling, the early spring may be the best opportunity to take advantage of the currently favourable conditions.

The moral of the story:  While many people don't seem phased by the upcoming elections, better safe than sorry - sell now to avoid regrets later.

2. With the Number of Properties Available to Buy at a Very Low Level there is a Window of Opportunity for Sellers

Levels of sellable properties have hit the lowest level that we have seen this century.  The number of available properties per estate agency branch is now 63, its lowest level since January 2008. Added to that you have to consider that with many estate agency branches having closed, there are fewer branches sharing the available properties.  Lack of supply has been driven by reduced access to mortgage funds, economic uncertainty and a low level of forced sales. There are also drastically fewer new-build properties coming to market. Shipside of Rightmove adds: “Buyers have little choice in popular areas, and while this continues sellers have a window of opportunity to obtain a higher price and a speedier sale. At present the limited supply of sellers is being outstripped by buyer demand but we predict there will be more forced selling later in the year.” 

The moral of the story:  If you are thinking of selling, do it now while the market is still in your favour.  If you are looking for property to buy and find the right home, act quickly or another buyer may snatch up the property.

3. Base Rates Expected to Increase

The base rate is expected to rise (although not in the short terms) as the economy starts to recover. While mortgage criteria are still tight there are signs of increased competition within the mortgage market and a slight relaxation of lending criteria.

The moral of the story:  If you have the deposit and track record, then there are some good bargains to be had that will not last when base rates start to increase. If you can get the finance in place now, you are best to do it.

4. Confidence that we have Reached the Bottom of the Market and are Coming Out of Recession

With employment levels holding up, and the country on the verge of exiting recession, potential home-movers are also feeling more confident about the outlook for the property market. Shipside at Rightmove says: “Preliminary findings from the latest Rightmove Consumer Confidence Survey show that around two thirds of respondents believe that now is a good time to buy, with only circa 1 in 5 feeling it will be a worse time to buy in 12 months. It will be interesting to see if this confidence remains over the course of the next two quarterly surveys that are likely to straddle the election.” 

Moral of the story:  There is a great deal of professional opinion being reported in the media that speculates that the election could cause the property market to slow down a bit, causing property prices to stagnate.  If you move now, you take advantage of the market conditions without risking losing out on the best asking price you are likely to see in the near future.

Don't take a risk and gamble on the effects of the general election, get a free valuation today.  Call Northfields on 0208 840 6666 or request your valuation online by clicking here.

Ask the Agent: What is a Guarantor?

A guarantor is someone who agrees to sign an agreement (most typically a lettings agreement) and in effect guarantees that they will undertake the full obligations under the tenancy agreement on the tenant's behalf.  If for some reason the tenant cannot pay the rent, the guarantor will make the payments. This most commonly happens when a student needs to have a parent sign onto the lease as a guarantor so the Landlord feels comfortable that if the student cannot make the payments, the parents will. In the case of a lettings agreement a guarantor pays the landlord any losses, expenses or damages where the tenant fails to carry out their obligations under the lease.

With residential lettings those people who have low credit scores may be asked by the landlord or estate agent for a guarantor. There are many reasons why a tenant may have a low credit score when credit checks are carried out. These include:

• Never having borrowed money or used credit cards
• No fixed address and/or not listed on the electoral role
• Lived at current address less than 6 months
• Lived abroad and returned to home country
• Worked for less than 6 months
• Student or job with low earnings
• History of debts, late payments or Count Court Judgements (CCJs)

If a guarantor is required then they will be referenced, just like a prospective tenant.

What happens if the gurantor does not pay?

The guarantor is contractually bound to accept the legal liabilities of the tenant and will be sued if they don't comply. In recent years there have been far more claims filed against guarantors and therefore assuming the role of a guarnator is a very serious one that should be considered very carefully.

Who can be a guarantor?

The guarantor would usually need to be a home owner with steady long-term employment if they are to meet the requirements of a good credit score to become a guarantor.

Parents of young people or students are often asked to guarantee their children's rent.  Although it seems more likely that a parent can trust and therefore guarantee their child, parents need to realise that many students live in communal settings with other students.  The parent who acts as a guarantor in this case is then guaranteeing all the residents of the property and not just their own child.

How do you become a guarantor?

• Complete a Guarantor's Application form - this form is similar to the tenancy application. Credit searches and references will be checked
• Sign a Guarantor's Agreement

Reference checks will look into:

• The individual's identity
• The property to be let
• Guarantor's personal details
• Residency information
• Legal history
• Employment history
• Accountants, solicitors, character referee
• Declaration allowing credit search & signature

Acting as a guarantor is a very serious undertaking.   Think carefully and seek legal advice before entering into long-term commitments.

Do you need advice about acting as a guarantor?  Ask our award-winning lettings team by calling 0208 567 6660.