Kensal Rise & Queens Park, 69 Chamberlayne Road, London, NW10 3ND
Kensal Rise & Queens Park, 69 Chamberlayne Road, London, NW10 3ND
estate agents

We’ve probably all had enough of people campaigning in recent weeks but I have to admit to one disappointment with the General Election.

There was plenty about housing in the manifestos and the new government certainly has ambitious plans, but no party called for what I consider a straightforward win-win for both consumers and estate agents - that is, the simplification of the house buying process. 

If we’re all about change these days, how about transforming the over-complicated, slow and sometimes heartbreaking way we sell and buy homes?

Many agents, I know, share my impatience with the lack of progress on this, and I appreciate that trade organisations and cross-industry bodies are in talks to get things moving. 

But if you need evidence of how far we still have to go, look at these statistics.

Rightmove says it takes an average of over seven months from when someone puts their home up for sale until they move. Despite the odd element of the process being digitised and apparently modernised, it’s still a desperately long time. 

Because of the absence of information for buyers upfront - again, despite some attempts by some agents and conveyancers - there were 312,770 fall-throughs on the UK residential property market in 2022 (the latest data) according to property analysts TwentyCi.

And a survey of 2,000 home movers by a conveyancing firm found that 72% felt they had suffered stress-related health problems when they last moved -  issues like anxiety, an inability to switch off, sleep deprivation and more frequent arguments with loved ones.

Frankly, it’s not good enough that we treat buyers and sellers this way - and not good enough that agents and other players in the property transaction business go through hell too, especially when the chain breaks and frustration hits everyone involved.

I’m not apportioning blame to any of the many elements involved in buying and selling: it’s the system that’s broken, rather than any player within it. 

But I hope agents will join me in thinking that a new government with a thumping majority might just be the right time to look at this subject anew.

Just before the election was called an all-party group of MPs began an inquiry into improving the home buying and selling process.

Unlike actual legislation going through Parliament, this group’s work was not lost at the calling of the election so the Levelling Up, Housing and Communities Select Committee will meet again in the coming weeks, albeit with new MPs filling the seats.

They themselves cannot change the law but they can at least shine another light on the delays and the anguish caused, not least to the efficient working of the agency, legal and surveying industries who often have abortive work as a result of ‘the system’.


Now on Move iQ there is a host of advice for sellers to prepare their homes and get information ready at an early stage; likewise our guides for buyers emphasise the importance of funding and other upfront considerations when it comes to budgets.

These are invaluable for buyers and sellers operating the current system.

But in the long run we can all do better still. So what do we want instead?

It’s open to debate - and heaven knows we’ve had a lot of that on this issue! - but let’s start with the maximum amount of upfront information for buyers. 

This would reduce the number of abortive viewings - which agents have to do - and would mean that if purchasers get cold feet about a home, it’s much earlier on in the timeline.

Buyers would have to have their own ducks in a row with guaranteed funding in place and other basic information available before they even register with agents.

We should also have much firmer rules on offers and when they are accepted, to slash gazundering and gazumping - if needs be, introducing non-returnable deposits at a key stage of the sales process to lock in purchasers and safeguard sellers from buyer U-turns.

Properly funded - and digitised - search facilities in each council should have minimum   response times whatever the authority; and more use of electronic signatures throughout the process would be a step in the right direction.

And above all, uniformity of approach on digitally converting property data and documents which can be shared with all parties to the transaction, with only commercially confidential information excluded from the sharing process. 
Utopian? Of course - but with Britain getting a political makeover with pledges to get the country moving and competitive again, how long can we seriously accept our present 
system is the best we can manage?

Are you on board?

Housebuilding, leasehold and rental reform are set to be key roles of the new Labour Government’s legislative agenda but agency regulation was missing from yesterday’s King’s Speech.

The State Opening of Parliament saw the King’s Speech set out Prime Minister Keir Starmer’s legislative priorities.

This included a Planning and Infrastructure Bill as well as legislation to fill the gaps on leasehold reform and scrapping Section 21 notices.

The Planning and Infrastructure Bill aims to help Labour fulfil its aim of building 1.5m homes over the next five years by reforming compulsory purchase compensation rules and modernising planning committees, while boosting their capacity.

Brian Berry, chief executive of the Federation of Master Builders  said it is positive that the new Government has already made tackling the UK’s housing crisis a key priority. 

But he added: “One startling omission is the lack of plans to upgrade the existing housing stock. We had been expecting to see a bold plan to retrofit five million homes to make them greener and more energy efficient but clearly the purse strings have not been opened enough to allow for this. While we should be looking to build more homes we mustn’t take our eye of the existing housing stock, which is the oldest and leakiest in Europe.”

Tim Bannister, Rightmove’s property expert, added: “The new Government can now get going with its pledge to improve planning processes so that building homes can take place more quickly. We need more, good quality homes across the UK in the right places, so that everyone can find their next home, whether they are looking to rent, buy for the first time, upsize or downsize."Meanwhile, a Draft Leasehold and Commonhold Reform Bill pledged to end the “feudal leasehold system” by continuing previous changes including regulating ground rents and banning the sale of leasehold flats.

Katie Kendrick founder of the National Leasehold Campaign, described the move as momentous.

She said: “Over the years we have heard many Queens / King’s speeches promising reforms but today’s commitment from the new Government feels different.
“It feels like meaningful change is eventually going to be delivered. 

“It is clear there is a lot of work still to do on the many issues of leasehold but it's refreshing to know that the new government is determined to pick up the outstanding issues, tackle them head on and deliver once and for all.”

However, Sheila Kumar, chief executive of the Council for Licensed Conveyancers, suggested the Government has missed an opportunity to make further improvements to the homebuying and selling process by failing to introduce measures to regulate property agents. 

She said: “Regulation of estate agents and managing agents could be immensely helpful for improving the operation of the property market, making better use of housing stock, supporting growth and providing increased confidence to consumers.”

More rate cuts are being announced by lenders all the time as they vie for business and anticipate the Bank of England base rate fall, which may believe could be as soon as August 1.

Yorkshire Building Society’s second rate cut in a fortnight includes: 

•    For remortgage borrowers and home buyers, a three-year fix at 80% LTV is down from 5.29% to 5.04% with no fee and free standard valuation;
•    For purchase only, a two-year fix at 75% LTV is down from 4.89% to 4.69% with a £1,495 fee and free standard valuation; and
•    For remortgage only, a five-year fix at 75% LTV is down from 4.59% to 4.49% with a £1,495 fee, free valuation and legal fees

Meanwhile Santander is cutting rates including: 

•    Selected resi fixed rates for new borrowers down by as much as 14 bps;
•    Selected resi fixed rates for product transfer by up to 11 bps;
•    Large loan fixes by up to 11 bps and large loan two-year trackers by 15bps; and
•    Buy-to-let rates reduced by between 4 and 13 bps

And Accord is cutting…:

•    Two-year fixed rates and two-year trackers for BTL investors reducing by 10 to 15 bps;
•    Three-year fixed rates reducing by 25 bps; and
•    Five-year fixed rates reducing by 20 to 25 bps.

TSB is launching a three-year fixed for first-time buyers, home movers and remortgage borrowers with a £495 fee and rates starting from 4.75% while also cutting rates on:

•    Five-year fixes for remortgage up to 90% LTV by up to 20 basis points;
•    Two and five-year fixes for first-time buyers and home movers up to 85% LTV by up to 15 bps;
•    Three year fixes for FTBs and home movers by up to 10 bps;

And TSB is making further cuts to selected BTL rates:

•    Some two-year fixes for purchase and remortgage down by 10 bps;
•    Some five-year fixes for purchase and remortgage down by 15 bps;
•    Some two, three and five-year fixes for product transfer down by 10 to 15 bps.

Finally Saffron for Intermediaries is cutting as follows:

•    Large loan five-year fixed rate for owner occupiers at 80% LTV, is dropping by 60 bps from 5.37% to 4.77%, while the £1,495 fee remains unchanged;
•    Two-year fixed for owner occupiers at 80% LTV is being cut by 30 bps from 5.67% to 5.27% with the same £999 fee;
•    A retro-fit two-year fix at 80% LTV is going down by 40 bps from 5.67% to 5.27% also with a £999 fee; 
•    Buy To Let five-year fix at 75% LTV with a £2,500 fee is going down by 20 bps from 5.87% to 5.67%; and
•    BTL two-year tracker at 75% LTV with a £1,995 fee is being reduced by 10 bps from 6.09% to 5.99%.

 

Affordability concerns are prompting many first-time buyers to consider moving more than 30 miles on average from their preferred location to get their foot on the property ladder, research suggests.

A study of 1,000 aspiring homeowners from saving and investing app Moneybox found 39% are actively looking at properties in neighbouring areas beyond where they currently live to improve their chances of securing a property which meets all their needs. 

Those surveyed were most willing to compromise on location in order to afford a garden (66%), a spare bedroom (53%), an en suite bathroom (48%), a driveway (47%) or a garage (44%). 

The study also revealed financial reasons were not the only things motivating potential homebuyers to look further away, with some looking for more peaceful or serene surroundings (38%), or safer neighbourhoods with lower crime rates (32%).

Aspiring first-time buyers in Wales are looking furthest afield, considering properties an average of 38 miles away. While hopeful buyers in London and the South East are prepared to move up to 33 and 37 miles respectively.

Despite affordability challenges, homeownership remains an important goal for the majority of first-time buyers in the UK (79%), with 62% viewing it as a key to unlocking financial security, up 6% from last year.

Brian Byrnes, head of personal finance at saving and investing app Moneybox, said:  “Market volatility over the past few years has really highlighted how compromise is often the key to getting on the property ladder as a first-time buyer. It's great to see how first-time buyers have been adapting to make their dream of owning a home a reality and we see this resilience and commitment every day among our customers. 

“However, we also believe that more could be done to help first-time buyers navigate current market conditions with greater confidence. Interest rates and house price growth now mean that more people will struggle with affordability and so it’s never been more important to save a suitable deposit.

The study also found 35% of those surveyed feel optimistic about becoming homeowners and 22% have even managed to save more than expected towards their deposit in the last six months.

Yet, the cost of living continues to impact disposable income for the majority (57%) making it harder for many to save for a deposit alongside rising house prices (51%).

According to the research, first-time buyers are now saving 18% less towards their first home deposit than a year ago, down from £344 to £286 a month.

17% are also eagerly awaiting the General Election to see what support may be provided to aspiring first-time buyers by a new government.

Byrnes added: “As we enter the final weeks before the General Election, it is clear that more needs to be done to address housing supply and sustainably boost homeownership - without further inflating house prices. However, many of the solutions needed are complex and will take some time to bear fruit. 

“That is why we’ve been campaigning to future-proof the Lifetime ISA, a hidden gem of a savings product that has supported a whole generation of first-time buyers, buying their first home far sooner than would have otherwise been possible due to the fantastic 25% government bonus on deposit savings.

“We believe first-time buyers deserve all the help they can get and so we are calling on the next government to futureproof the Lifetime ISA and help more people save more money towards their first home deposit.”

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