Northfields

PRESS RELEASE: NORTHFIELDS SCOOPS INDUSTRY’S TOP LETTING AWARDS

Northfields has scooped five awards in the Estate Agency of the Year Awards 2010 including the ultimate honour for a lettings business, Lettings Agency of the Year. The awards, the “Oscars” of the estate agency industry, are the longest running and most highly regarded accolades in the profession, championing best practice. The winners were announced on Tuesday 15th June at a glittering awards ceremony hosted by American comedienne, Ruby Wax.

  

As well as the top award for best overall performance, Northfields won the Gold for Best Small Lettings Agency, Silver for Best Property Management, Gold for Best Marketing and Bronze for Training and Development. The judges commented, “For an agency of its size, Northfields’ investment in its staff training, technology and innovation is impressive. It continuously demonstrates an ability to punch well above its weight.”

The Northfields lettings team invests equal time in both landlord and tenant and have implemented innovative ideas to help both. The judges noted, “Excellent communication is key to this business and is shown in every relationship. Both tenants and vendors comment on the team’s exceptional knowledge, dedication and enthusiasm.”

The difference our approach makes is reflected in our figures: 86% of our business comes from personal recommendation, 18% of landlords have stayed with Northfields for over a decade and six out of ten properties are let within 24 hours. This impressive performance is enabling us to open our fifth office in Bayswater, W2 this year, despite the recession.

Proud lettings director Silvia Eldawi comments, “It takes something special to be a member of the Northfields’ lettings team. Our staff are passionate about what they do and I am thrilled that the hard work they put in to helping our customers has been recognised.”

The awards, which are chaired by the Property Ombudsman and have the backing of the Association of Residential Lettings Agents (ARLA), were judged by a panel of highly experienced property professionals. All the judges have seen numerous different agencies over many years, giving them the ability to compare one lettings agency with another.

Northfields, which already has branches in Shepherds Bush, Ealing Broadway, Northfields and Pitshanger, To discuss how we can help you, call our award-winning lettings team on 020 8567 6660.

May 2010 Property Market Update

At the beginning of 2010 many commentators said that the election might very well put a damper on the housing market.  However, Rightmove has reported in its latest market update that "the week before the election saw the highest number of new sellers coming to market since week commencing 28th June 2008".

While that flood of new sellers might be very gratifying, the lack of buyers able to secure financing and then proceed to competition is considerably lower. 

What does this mean for the property market?

The Right Price

The upshot is that properties need to be priced correctly and competitively.  Every property will sell for the right price - even less attractive properties will sell provided that their price is attractive enough.  Those sellers motivated to sell need to have agents on their side who will give them a fair appraisal of what price their property is likely to achieve.

One of the best ways to ensure that your property is priced correctly is to ask your agent for comparables.  Comparables are other properties similar to your own.  What asking price are other comparable properties listing for and what are similar properties that have sold recently actually achieved as a sale price?

Pent-Up Need

Even with a lack of available mortgage lending and the election many people have come out of the woodwork to list their homes for sale. As Miles Shipside at Rightmove points out, "New sellers have already been holding back on coming to market for nearly two years, and as kids do not stop growing in a recession, some family houses must be bursting at the seams”.

The New Shape of Property Chains

On the one hand many homeowners will be feeling the pent-up need to move, while on the other hand first time buyers in particular can't get mortgages to make their first move onto the property ladder.  This unbalanced outlook means that the market has to either operate at reduced sales volumes or hope that sellers can sell to each other, forming circular chains by trading up and down. With the circular chain model it will be necessary for agents to stay on top of the chain, doing everything in their power to support and hasten the process to keep the chain from breaking down.  Agents like Northfields that have a  dedicated sales progressor whose sole focus is seeing a sale through to completion will have far more success than other agents.  Therefore, it would be a wise move for sellers and buyers to choose an agent with a dedicated sales progressor.

Not sure what property chain is?  Click here to find out.

What can we expect from here?

As Rightmove reports, "One of the many issues for the new Government is to review the ‘broken’ housing market. The previous Government’s target of 3 million new homes by 2020 was aimed at meeting projections for growth in the number households. This target is now in tatters with the industry struggling to build even 100,000 homes this year. Assisting higher new-build and resale housing transaction volumes is likely to be an important consideration as part of a consumer-led recovery."

It is not expected that the current tight restrictions being maintained by mortgage lenders will loosen any time soon.  Particularly in light of the Greek financial crisis which make may banks more nervous about lending to each other.

There many also be more property coming to the market with the Coalition government scrapping Home Information Packs.  Many sellers who were putting off selling their property may be tempted to test the market by listing their homes.  This will add more pressure on sellers as the competition to attract buyers becomes more challenging.

Math For the Current Market

The addition of more stock to the property market means that sellers will need to be more realistic in their price expectations.  Although many homeowners balk at adjusting their price to suit the market, the maths prove that such a change in the market can be advantageous. 

Consider this situation as an example:

You are selling a home worth £150,000 but choose to reduce the price by 10% (a figure picked as a example and to make the math easier).

So you sell the property at a reduced price of £135,000 - a loss of £15,000.

However, you buy a property worth £250,000 that was reduced by 10% to attract a buyer.

Meaning that you, as the buyer, would save £25,000 off the sale price of your new home.

You may have lost £15,000 of the price of your property but you saved £25,000, making you £10,000 better off.

To find out what your property is worth in this market and to see how much you stand to gain by moving, call Northfields Estates now on 0208 840 6666 to arrange your free valuation or click here to request your valuation online.

Home Information Packs Officially Suspended as of Today

The Coalition government has officially suspended the use of Home Information Packs (HIPs) as of today.

First introduced in 2007 in England and Wales, HIPs were supposed to speed up the house selling process by obliging sellers to provide much of the required conveyancing information when properties are first put up for sale.

The packs are paid for by vendors before putting their property on the market.  The packs contain property information, title deeds, an energy performance report and local searches.

Today the BBC quoted the new Housing Minister Grant Shapps, "Today the new government is ensuring that home information packs are history,".

"By suspending home information packs today, it means that home sellers will be able to get on with marketing their home without having to shell out hundreds of pounds upfront.

"We are committed to greener housing so from now on all that will be required will be a simple energy performance certificate," he added. 

Although the coalition are eager to point out their green credentials, the reason that the new government has not be able to scrap the Energy Performance Report element of HIPs is due to EU regulation.  

If you have been thinking about listing your house for sale, now you can list your property without the need for paying the upfront cost of a Home Information Pack.  Call now to request your free valuation on 0208 840 6666 or request your valuation online by clicking here.

Home Information Packs to be Abolished

Part of both the Conservative party and Lib Dem platforms during the election was the promise to abolish Home Information Packs (HIPs) which the Labour government introduced in 2007. David Cameron and Nick Clegg announced in their joint policy statement that:  “The parties agree to implement a full programme of measures to fulfil our ambitions for a low carbon and eco-friendly economy, including retention of energy performance certificates while scrapping HIPs.”

HIPs have been the subject of controversy since they were first introduced. The idea behind the introduction of HIPs was to provide home buyers with a pack which effectively told them everything they needed to know about the property they were interested in buying. The packs were meant to include details of the area and, at one point, were also set to include a Home Condition Report, which was effectively a survey that would inform the buyer of the condition of the property, including any problems with it such as damp, foundation problems, etc. Before HIPs were rolled out, the Home Condition Report was made voluntary - a move that many argue made HIPs completely useless.

In 2007 the implementation of HIPs began. The roll out was slow and started with just very large houses with five or more bedrooms. This was gradually rolled-out to include other sized properties and by 2008 all properties, regardless of their size, had to have a Home Information Pack in order to be sold.

Along with the "dumbing down" of HIPs when Home Condition Reports were made voluntary, the first day marketing rule that came into effect last year has caused a great deal of criticism.  The first day marketing rule states that a property must have a fully completed HIP before it is even put on the market.  Critics of the HIP argue that the introduction of HIPs prevents potential sellers from "testing the market", by offering the property for sale just to see what happens.  With first day marketing the seller must pay the up-front cost of the HIP before taking a further step.  However, some argue that the first day marketing rule ensures that only serious sellers enter the market, so that agents don't waste time and money on vendors who are not actually motivated to sell.

Since the roll-out of HIPs the Conservatives have been very critical of the packs, accusing the Labour government of creating excess paperwork, expense and bureaucracy for home sellers.

The Telegraph quoted Nicholas Leeming, a director of the website Zoopla, as saying: “The abolition of HIPs is a positive move for the housing market. Sellers see them as an annoyance, buyers don’t ask to see them and solicitors often refuse to rely on the information they contain.”

However, the Conservative/Lib Dem coalition can not rid the property market of every part of the Home Information Pack - the Energy Performance Certificate will have to stay for both properties being offered for sale or rent.  Although the coalition say they are keeping energy performance certificates “to fulfil our ambitions for a low carbon and eco-friendly economy” part of the reason that Labour pushed the HIP through in the first place was to fulfil compulsory energy assessments for every home which were required under European Union law. So the Coalition's eco-friendly claims are not so righteous as they would have us believe.

Will the New Budget Help the Property Market?

The BBC reported today that the new Chancellor George Osborne has said the government will announce next week how it plans to make £6bn in spending cuts this year.  The coalition government's "emergency Budget" will be released on Tuesday 22 June, he added.

Mr Osborne was quoted as saying: "The Treasury's assessment is that there is a strong economic case for an immediate spending reduction of £6 billionn. So we are in no doubt that this action is advisable. By tackling wasteful spending now rather than later, we can demonstrate our commitment to tackling the deficit."

The coalition's changes could "enhance" front-line services, he argued, saying: "In the end this is about value for money."

The chancellor said he would like his first Budget to be about "handing out goodies", but the UK had to "live within its means" and the deficit was the "most urgent issue" facing the government.

Critics of the coalition government have already issued warnings that severe cutbacks could curtail the economic recovery of Britain. 

The Times Online goes so far as to predict that the funding gap for first time buyers could widen after the cuts expected in the latest budget, with housing issues unlikely to prominently feature in the financial plans of the coalition government.

It looks as though first time buyers will continue to struggle to save large enough deposits to satisfy the demands of mortgage lenders.  Added to that, with funding for affordable housing likely to be reduced as public services are cut and the money that was brought forward starts to run out.

During the election campaign property was not a major contender.  And with the Chancellor tightening the purse strings, schemes to build new council houses and set up shared-ownership schemes look likely to be victims of the cutbacks. 

The Times reported that "Labour pledged to provide extra funding for Kickstart and shared-ownership schemes to help to build more affordable homes. But it remains to be seen when the new coalition will be in a position to clarify its position on continuing these schemes and the extent to which funding for affordable housing will be cut when the Treasury’s axe falls."

Many feel that the property market will not be greatly affected by the expected budgets cuts. 

What do you think?

Can you see a way to help first time buyers that our political parties can't?

 When you look at the policies of the warring polictical parties, do you feel that any of their campaign manifestos address the struggle that first time buyers are experiencing?.  Just have a look at this article for a summary of what the main parties are proposing for property.

The Times Online reported that:  "First-time purchases are at a 20-year low. Only 347,000 people took out a mortgage for the first time in the year to February, according to GfK, a market research company. This is 100,000 fewer than the previous low, in February 1993."

As the Times points out the slump  occurred at the same time as the stamp duty holiday on properties costing up to £175,000. Some say this is because the first stamp duty holiday was not far reaching enough.  It certainly did not offer any help to purchasers in the West London area.  Does this mean that the current stamp duty holiday on first-time purchases up to £250,000 is doomed to failure as well?

The Bank of England said that "The major UK lenders expected the impact of the new stamp duty land tax relief announced in the Budget to have some positive impact on mortgage activity from first-time buyers, though obtaining the deposit for house purchase - rather than the cost of stamp duty - was perceived by some lenders to be the greater constraint to house purchase”.  

Of course it is the banks themselves where many people point fingers.  Currently, first time buyers are put through very rigorous credit checks and then have the choice of either a 25 per cent deposit (an average of £31,500, or £53,700 in London) or extremely high rates.

This has resulted in many first time buyers resorting to borrowing from "The Bank of Mum and Dad" - a trend that Northfields sees increasingly more.  Given that, it isn't that surprising that the average age of a first-time buyer with no parental help is now 37, up from 33 in 2007.

So besides offering tax incentives what else could the main parties do to give first time buyers the helping hand they need?

What action do you think would make a areal difference to first time buyers?

Or the UK could make a giant shift toward what is generally done by our European neighbours - that is, become long term tenants.  Can you see that happening in Britain?

Is the Worst of the Market Downturn Over?

The most recent market update from the Halifax shows some positive news, but with a few points that show that the property market is not fully revived to its market peak in 2007.

A Way to Go Yet

There are a number of factors that suggest that the property market is not back at the peak performance that we experienced at the height of the market.  There are a number of factors that suggest we have a way to go yet:

1.  Numbers of completed sales still low - The number of houses being sold remained low in March with sales still only around half of those in the second half of 2007.

2.  Mortgage approvals still low - The Bank of England industry-wide figures show that the number of mortgages approved fell by two per cent between January and February, and by 17 per cent in the previous month.

The Good News

There are a few points which we can be optimistic about:

1.  House prices rising - According to the Halifax's latest report, house prices rose by 1.1 per cent in March, partly offsetting February’s fall of 1.6 per cent.

2.  House prices rises have mostly been consistent - Property prices have increased in eight out of the last nine months and are now 9.1 per cent higher than their lowest point in April of last year.

3.  Annual price rise shows a year-on-year rise - Annually, house prices were 5.2 per cent higher than in March 2009, which was the largest year-on-year rise since December 2007 (also 5.2 per cent).

4.  The Average house price is up - The average house price in England and Wales is now £168,521.

5.  Stamp Duty Holiday for First Time Buyers -  the temporary suspension of stamp duty on properties sold for less than £250,000 will hopefully provide a boost to the housing market.

According to the Halifax report, more than nine out of ten first-time buyers in 2009 would have been exempt from paying stamp duty had the current £250,000 threshold been in place.

First-time buyers in Greater London will benefit most from the higher threshold, says Halifax, with around three-quarters expected to be exempt from the tax.

To benefit from the stamp duty holiday check out the properties that Northfields has for sale listed for £250,000 or less by clicking the link or call us on 0208 840 6666 to register your details now.

Questions on the Budget 2010: Stamp Duty Questions answered

In the latest budget it was announced that homes under £250,000 will not be subject to stamp duty.  This "stamp duty holiday" will last for two years and only applies to first time buyers.  In addition, an increase in stamp duty for properties worth more than £1m has been suggested to begin in April 2011, well after the election.

Following the announcement, there was so much confusion regarding the new policies that the Treasury's website crashed as it was unable to deal with the numbers of users trying to scour its pages for answers.

Here, Northfields tries to answer some of the more common questions:

Question:  If I just completed on a property in February, can I claim the stamp duty back?

Answer:  Unfortunately, no.  The stamp duty holiday is not retrospective.

Question:  My partner has never owned a home, but I have.  If my partner and I buy a property together will we qualify as first time buyers?

Answer:  The HMRC advises that:

"The purchaser must not, either alone or with others, have previously acquired a major interest in land which includes residential property, or an equivalent interest in land situated anywhere in the world."

Put more simply, that rules you out as joint purchasers because one of you has previously owned a home.

However,the HMRC has advised that one way around this is to purchase the property in your partner's name only as they would be a genuine first-time buyer and would therefore be able to benefit from the stamp duty holiday.

Question:   I am originally from outside the UK.  I used to own property in my home country,  but I now live in rental property here in the UK, do I qualify for the stamp duty relief?

Answer:  Simply, no.  You can't have previously owned a property anywhere in the world.
   
Still have questions?  You can call the Stamp Taxes Helpline on 0845 603 0135 or go to the HMRC website for its guidance or alternatively call Northfileds on 0208 840 6666.

Now Easier for First Time Buyers to Save a Deposit

The latest edition of the Find a Property House Prices & Affordability Index reveals that it is now easier for
first-time buyers to get onto the property ladder than it has been at any time since the start of the credit crunch.

Why?

Mortgage Lenders have eased their lending criteria, combined with the prices of entry level properties remaining more or less stable over the past year.

With the latest announcement from Alistair Darling that properties worth under £250,000 will not be subject to stamp duty for the next two years, things are set to improve even more for the first time buyer.

Nigel Lewis, property expert at FindaProperty.com, comments: "This month, with lenders being more generous and property prices largely stable, the effective deposit is a bit smaller, making it easier for first-time buyers than since the start of the credit crunch.

"The cloud on the horizon is that prices are starting to show signs of upward pressure which could make homes more expensive over the coming months, if there remains a shortage of stock.

"More properties are coming onto the market, but there are still 12 per cent fewer entry level homes available than a year ago.

"Lenders’ recent relaxation of criteria is welcome.  They must keep up the good work, and actively look for ways to help hard working British families who see 2010 as the year to get on the housing ladder."

Want to see what kind of deposit you would need to save to buy your own home?  Call Northfields now on 0208 840 6666 and we'll put you in touch with an independent mortgage broker who can tell you exactly what you would need to save to get on the property ladder.

New Budget Gives First Time Buyers a Leg-Up the Property Ladder

Alistair Darling just announced in the latest budget that Stamp Duty on properties under £250,000 will be suspended for two years.  The announcement is likely to give the housing market a significant boost while giving first time buyers a boost onto the property ladder.

A previous stamp duty holiday which ended on January 1st, 2010 had little impact on the West London market as so few homes were under the £175,000 threshold set in the previous stamp duty holiday.  However, with this new and farther reaching stamp duty holiday, homes for sale under £250,000 make up a large percentage of the market and account for many first time buyer home sales.

The Nitty Gritty

• No stamp duty on purchases of property up to £250,000

• Buyer (or all buyers if joint purchase) must not have previously owned a property anywhere in the world

• Completion date must be on or after 25 March 2010 and before 25 March 2012

• Property must be your only or main home

What does it mean for First Time Buyers?

For first time buyers the suspension of Stamp Duty in this price bracket will save them up to £2,500. Stamp Duty is currently levied at 1% on transactions between £125,000 and £250,000.  From midnight tonight until March 25, 2012 first time buyers will save a significant amount of cash.

Take advantage of this huge savings and start looking for property now.  Check out the properties Northfields has for sale under the £250,000 bracket by clicking here.  Or to find out what properties are coming onto the market before anyone else, call now to register your details on 0208 840 6666 or click here to register online.

What does it mean for Home Owners?

If you own a property that is likely to be purchased by a first time buyer and with a house price that falls under the £250,000 threshold, you may find there is a sudden influx of interested buyers where previously you may have struggled to find a buyer.  

Make sure that your home is on the market now to take advantage of the pent-up demand from first time buyers.  Call us on 0208 840 6666 to request a free valuation of your property or click here to request a valuation online.