Buying, selling and letting - Tuesday, March 18, 2008

Investors need to keep up with the latest tips and market information, particularly in this challenging climate. Johnny Turner sees what’s new on the bookshelves

In property investment, as with most pursuits, information is power. And the subject of bricks and mortar as money-making vehicle is one that has had a lot of attention in recent years.
In these days of crunchy credit, with many finding financing for buy-to-let ventures harder to come by, it is more important than ever that would-be investors read up on the best way to approach the market. Here are two newly released books are must-haves.

How To Make A Million From Property, by millionaire property developer Gary McCausland, explains how you can make your fortune from property in a falling market as well as in a rising one – in fact, he says, because so many panic at the first sign of inclement weather in the property market, it can be easier to pick up a bargain and therefore make money, during bad times.
Gary McCausland has over 20 years’ experience in the property business and has developed over £50 million worth of property in the last five years. In this passionate and opinionated guide, he shares his expertise and knowledge with first-time property developers, giving them insider advice and knowledge in order to help them avoid pitfalls and common errors.
McCausland outlines his six essential elements that each life-changing deal must have, including: a price that is substantially below market value; motivated sellers; a location that’s on the up; awareness of your target market; adding value; and rapid turnaround.
Belfast-born McCausland says, ‘I came across problems that I had no idea how to resolve when I first started. If I knew then what I know now, I’d be twice as rich.’
Published  on 17 March 2008 by Collins & Brown, priced at £10.99

From the Which? Essential Guides series comes Property Investor’s Handbook, a guide to making money in property that covers renovating for profit, buy-to-let, investing overseas, making money from land and more.
A wide range of considerations are covered here, from risk management to understanding the market, from the importance of exit and back-up plans to meeting your pension needs through property.
The book’s modern, simple design serves to make the various bits of information, whether served in bite-sized facts and figures or slightly longer descriptive passages, easy to follow, digest and act on. An indispensable guide for the investor, whatever investment type or investors’ level of expertise.
Property Investor’s Handbook, a Which? Essential guide, can be ordered on 01903 828557 (at £10.99, p&p free) or at which.co.uk/books, or bought from bookshops.

 

HotProperty.co.uk runs a national index every month that monitors agents’ confidence levels in relation to the previous month.

 

The February ACI shows that agents are very confident in the market this month and buyers seem to agree. We found over half of our users are still looking into investing in property, even despite reports the market is slowing down.

 

The February index found 73 percent of agents were more confident in the market than they were in January. This is a one percent increase in confidence from January.

 

HotProperty.co.uk managing director Shawn Luetchens commented:

 

“This month’s index shows that agents’ confidence in the market is stable. It goes to show that the massive leap in confidence we saw last month wasn’t just a reaction to the January market, which is traditionally a busy period.

 

“Consumers are also showing signs of confidence; our recent research found that 44 percent of buyers have not been put off investing in property by the current market.”

 

www.hotproperty.co.uk/aci

 

We check out some of the other green options on the market including carbon neutral homes and other nifty green features to make your new home guilt-free.

 

ruralZED™, a consortium of architects and specialist manufacturers at the cutting edge of the eco house-building industry, have launched the UK’s first affordable, carbon neutral house at the annual EcoBuild exhibition.

 

The house is the first durable laminated timber frame to incorporate high levels of thermal mass that will help keep residents cooler in summer and warmer in winter, state of the art energy saving building fabric, and enough building integrated renewable energy systems to achieve zero carbon status.

 

By using a frame and traditional materials, as opposed to plastic foam, the construction is both durable and avoids problems with off-gassing and poor indoor air quality that can be inherent with other modern construction techniques. Hence it also has none of the concerns with combustibility that have been encountered with plastic foam construction.

www.ruralzed.com

 

Candler Place, Twickenham

 

Michael Shanly Homes have gone beyond the call of duty with their Candler Place development.

 

Six of the homes have solar water heating via roof mounted evacuated tubes, which contribute to the properties domestic hot water supply. Other environmental features on the development include low emisity glazing (providing enhanced solar gain), the use of selected timbers from sustainable resources, dual flush 4/6L WC systems, energy efficient kitchen appliances (‘A’ rated where possible), bird boxes to all gardens and communal grounds, lockable cycle storage, communal water butts and solar powered bollard lighting to the external areas.

 

www.michaelshanly.co.uk

 

Aspect

Upton, Northhamptonshire

 

Aspect at Upton is a development of 26 three, four and five bedroom homes feature a wide range of environmentally friendly technologies.

 

There are roof mounted photovoltaic systems which will generate electricity     to assist power to individual homes and will allow unused power to be sold back to the National Grid. Fuel bills will also be reduced by the introduction of green roofs, acting as superior insulation, keeping homes cool in the summer and warm in the winter. High efficiency boilers are assisted by solar thermal panels and      advanced combustion fireplaces powered by dry wood have been selected for optimum energy efficiency.     Harnessing natural resources also extends to rainwater harvesting for washing cars and watering gardens.

 

www.dwh.co.uk

Holborough

Snodland

 

Berkeley Homes (Kent) Ltd is the largest builder of timber frame Super E® homes in the world, with its Holborough development in Snodland leading the way in the energy saving stakes. The Super E® technology being used at Holborough creates a ‘sealed’ environment in homes.

 

This means warm air inside can’t escape through holes in windows and doors, or through the roof. The ‘sealed’ environment is achieved by using panels that are constructed under strict factory conditions for better quality control. Once in place, the panels provide an airtight setting and superb insulation.

 

The Super E® system also helps to regulate three other areas where heat is lost in the home, including the stack effect (when heat rises and cold air is sucked in), the flue effect (when warm air escapes up the chimney) and the wind effect (when a home is subjected to strong, cold winds).

 

In addition, Super E® technology employs a heat recovery ventilator that brings fresh air into the house and controls humidity. The old air leaving the building warms the incoming air, although it is never mixed. Therefore, the need for central heating is vastly reduced.!

 

www.holborough.co.uk

 

Campbell Square

Milton Keynes

 

The Campbell Square development in Milton Keynes boasts a sustainable design includeing renewable energy such as solar panels and environmentally friendly green roofing.

 

All the homes have superb facilities such as energy efficient white goods, low energy white downlighters and insulation which go beyond current building regulations. Some of the development's apartments can expect the solar panels to provide 40-50% of their hot water helping to reduce gas bills and carbon emissions.

 

The residences will comply with the EcoHomes excellence rating.

http://www.georgewimpey.co.uk/

New builds are now expected to be environmentally conscious – both during the build and in the features of the homes. We look at the winners of the annual New Homes Award Green Homes category.

 

Houses

 

 

PLATINUM - George Wimpey South Midlands - Oxley Woods

Oxley Woods makes a design statement through use of innovation and sustainable materials. The design, by world renowned architects Rogers Stirk Harbour & Partners, perfectly complements the development’s woodland setting. The development began as a competition to design a home that would cost just £60,000.  These homes achieve the maximum National Home Energy Rating and a ‘Very Good’ EcoHomes classification as well as a 40 per cent reduction in carbon dioxide emissions compared with a conventional new house of a similar size. Oxleywoods.com

 

 

GOLD - Ward Homes - Origins

Origins by Ward Homes is a unique development of homes in Ashford, Kent, including eight one-bedroom houses, nine two-bedroom houses and four three-bedroom houses. The homes have a range of eco-features including solar panels, efficient boilers, and water-saving devices and cycle storage units.  Wardhomes.co.uk.

 

 

 

SILVER  Hillreed Homes - Capell Gardens

Capell Gardens, is a development of 15 homes near Maidstone, Kent.  The homes boast a range of environmental innovations including loft insulation, double glazing, energy efficient appliances, low energy internal and external lighting, low emission and high efficient boilers.  Flow regulators on wash basin taps, showers and outside taps mnimisise water usage and as part of the service, Hillreed Homes provides all new home owners with an environmental best practice guidance welcome pack.  Hillreed.co.uk

 

Apartments

 

Green Homes

 

 

GOLD Bellway South East - Meridian South

Meridian South is a £100 regeneration project, the redevelopment of the former Hither Green Hospital in South London. The scheme, set south of Greenwich on the Meridian line, includes 544 apartments set across eight buildings.  The focal point of the development is a pedestrian piazza, while other amenities include a supermarket, restaurant and a leisure centre. Hither Green station provides a link to London Bridge, making a commute into the City quick and straightforward. Bellway.co.uk

 

 

 

SILVER Telford Homes  - Stradthaus

Stadthaus in Islington, is situated on Murray Grove, off Shepherdess Walk in N1, ideal for the City worker who wants to eliminate the hassle of car commuting and the relative unpredictability of the tube, and simply walk into work. It is an eco-friendly development, from it’s commute-free location to the secure bicycle storage, while also offering stylish simplicity and all modern comforts. Telfordhomes.plc.uk

 

 

PLATINUM Premier Properties - White Gables

White Gables has an Eco Home ‘excellent’ rating. The 14 luxury two-bedroom apartments host a number of energy-saving initiatives including solar heating and eco-friendly appliance and features. All apartments observe a below-average swelling emission rate with regard to CO² emissions.  It is also well located for reducing car commuting, with three main stations - South Croydon station and both East and West Croydon stations - within two miles.  Premier-properties.co.uk

Advice for would be investors from property entrepreneur Arv Soar

Property expert, Arv Soar is the director of investment company, Property Investment Portfolio (PIP). Arv has been working in the property industry since his teenage years and in particular in regeneration zones across the Midlands and the North of England. He now has a portfolio of over 200 properties worth in excess of £20 million and in this issue of Hot Property, offers advice to investors thinking of putting their money into regeneration areas.

Regeneration zones can provide a great return on investment for property investors because housing is often cheaper and seen as undesirable. Generally speaking, a regeneration zone is an area that is in decline, for reasons such as industry in the area has taken a downward turn, unemployment could be high or living conditions generally poor.

Once labeled a regeneration zone, it shows the commitment of the local government to invest in the area and improve its facilities. Housing plans are usually part of a wider, long-term regeneration programme and provide funds both from the UK and the EU, which are spent on creating jobs, retraining people, attracting new employers, creating an infrastructure and updating houses and living conditions. With this commitment in place, regeneration zones can prove to be a sound investment.

Pros & Cons of Regeneration Zones

In regeneration areas, the rate at which capital values and rental yields increase is generally quicker, and at a higher rate than the national average. This is because money is constantly being invested in the area.

Property prices in regeneration zones are generally very low, therefore the capital investment required is low. Rental demand in these areas is often strong and many tenants that occupy these properties are on income support and in receipt of housing benefits, therefore payments come directly from the government, which is a huge plus point. Tenants in these areas tend to stay in properties longer, as they usually come from within that area or have connections in these areas. It is also essential to employ a good management agent, who is known in the area and knows how to deal with these tenants.  They will ensure the property is kept to a good standard and will know how to vet potential tenants. 

With property investment in regeneration zones patience is key as regeneration does not happen over night.  The biggest capital growth will come at the beginning of regeneration but at this stage properties are harder to manage and require more attention. This is because typically regeneration areas have high unemployment rates, high crime rates and break-in’s are common, especially if properties are vacant. Investors also need to vet tenants stringently as they may not be able to provide financial guarantees.

The typical housing found in regeneration zones are “2 up 2 down” terrace style properties on densely populated streets, which are often found just off main roads and approached by walk ways. It is exactly these type of properties that investors should buy and the reason - capital growth and rental demand.

Top tips on how to succeed

Buying at the right time is essential in this industry. Buy during the period of regeneration, hold the property for approximately 18 months and if prices rise substantially look to sell, this will allow the investor to buy other properties with the extra cash, as deposits to reinvest in surrounding streets, where funds are yet to be invested.

Conducting thorough research of the area is also important. Do not buy just in one street, as that street may have had the immediate investment, but the surrounding streets still not – clearly these would now be a better buy. Properties just outside the zone also benefit from the ripple effect but these may be priced higher but often worth considering.

One tip is to look at regeneration schemes in operation - two main ones are the pathfinder scheme or the gateway scheme. Speak to the people involved in these schemes and find out what the plans are. If you find that the scheme has identified certain streets that have been earmarked for regeneration, ask the question: ‘does this mean grants or does this mean a clearance programme?’ If you can identify these streets before plans are officially announced, which is possible but risky, they can prove to be a great cash generator.

The plans of these schemes have lengthy approvals processes, which will give you as the investor a chance to buy the properties, which are usually the cheapest in the area, and rent them out before the CPO (Compulsory Purchase Order) plan is announced. Under a CPO plan the council will buy these houses generally to clear and from my experience, offers full market value and in a lot of cases offer incentives to the investor owner to sell. In most cases, this will involve paying a premium on the capital value or providing financial compensation for the loss of your investment. The surveyor has strict guidance to ignore the fact that the area is under CPO and therefore has to use comparables for similar properties not under CPO.

Regeneration zones can be found up and down the country but areas that have been attracting a lot of attention include Bradford, Hull, Liverpool, Leeds, East End Stratford, Birmingham and Ramsgate.

The demand for investment properties and rental values are on the increase and property assets are still leading the way in the investment market. This market is still very much on the up so there is no better time to get started.

For more information on Property Investment Portfolio, please visit www.propertyinvestmentportfolio.com, call +44 (0)115 928 9333 or email info@propertyinvestmentportfolio.com

 

The Experts

Professor Jim Steeley, of Aston Business School - The economist.

He’s an expert on Government debt, the bond market and he is an advisor to the Treasury and the Bank of England.

Simon Zutshi - The investor.

Advises property investors on how to build and manage portfolios that regularly exceed £1m.

Seamus Nugent, Managing Director of Dandara – The developer.

The company behind the V Building in Birmingham (which will become the tallest residential development in the UK) and many large developments across the UK.

Is Northern Rock the tip of an iceberg?

The economist: It appears that Northern Rock was unusual in the high proportion of its mortgage lending activity that was financed by borrowings in the short term money market, where the liquidity has been difficult. While other institutions also have exposure to the securitised mortgage instruments that are being used as collateral for these borrowings, their exposure is less and unlikely to cause difficulties, although it will and is affecting their profits. It is, however, difficult to anticipate where the losses will take place.

The securitised mortgage instruments have become a problem because they have tended to package both high quality and the so-called sub-prime mortgages together, which are widely traded. At the time of issue, interest rates were low, and the securities were rated as investment (as opposed to speculative) grade.

As interest rates have risen, particularly in the USA, where the sub-prime lending market has been huge, defaults have arisen on the mortgages causing a rapid decline in the value of the securitised mortgages, and so making them less attractive as collateral in the money markets. At the same time, the securitised products themselves have been widely traded among the financial institutions, so the exposure to defaults is wide-spread and unpredictable.

This uncertainty has exacerbated the reduction in liquidity. However, the very fact that the exposure is widespread is also fortunate as it means that the impacts can be spread and are unlikely to cause problems for any one particular institution.

The investor: Many of the banks don’t even know the full extent of the damage themselves yet as they are assessing exactly what they have in their securitised loans. I think we can expect more similar situations to Northern Rock ahead.

The developer: Like many other financial institutions, Northern Rock used the money markets as its principle source of mortgage finance.

When the wholesale credit markets began to tighten following the sub-prime situation in the USA, it became difficult for the bank to raise funds and refinance its maturing liabilities; it therefore had to approach the Bank of England to assist with liquidity.

Northern Rock has a good quality loan book with assets of around £113 billion and analysts forecast that despite its recent problems will still make more than £500 million in profit this year. In the current market most lenders are facing funding pressure, and what they need is a return to more normal market conditions as quickly as possible.

Do buy-to-let landlords have it too easy?

The economist: Following on from previous questions, this depends on when the properties were purchased and how big they are.

The investor: Not exactly. The legislation in this country is stacked massively in favour of the tenants. Unfortunately, governments interfere in private markets and implement legislation which is designed for the greater good and to get rid of bad practises but in reality just makes it very difficult for the landlords

The developer: At the beginning of the 20th century, 90 per cent of the UK population lived in privately rented housing. During the next 80 years owner-occupation increased and the state became the largest landlord in the country. However since 1980, a total of 750,000 council homes have been sold without any more being built to replace them; as a result privately-owned rental accommodation has become a vital ‘stop gap’ in an under-supplied market, providing a quality alternative and additional choice for those who cannot afford to purchase their own home.

I don’t believe that landlords have it too easy. For many buy-to-let investors, property is a business and their primary source of income. Landlords are entitled to claim tax relief on rental income, but are still liable to capital gains tax should they sell.

For your money, right now, would you buy, sell or sit tight?

The economist: I would try to sell neither a small dwelling in a high-density development, nor a country estate right now. My impression is that well located family homes are still able to be sold at good prices, though these are unlikely to be among many investment portfolios.

Until there is any sign of the rental market becoming active again, I would not consider buying to let a flat or small house, unless it is a new-build and the builders are offering significant deal sweeteners.

The investor: The market is shaky right now and I believe will come down in some areas, so this is the worst possible time to sell as it is a buyers market. But as an investor, I don’t generally sell, I buy. As long as you know what you are doing, now is a great time to invest as there are lots of motivated sellers out there.

If you have property already, I would suggest you sit tight as long as you can afford the holding costs while we wait for the market to recover which it will.

The developer: I believe that we could be in for a period of strong growth next year as the main underlying factors that drive the market – low unemployment, sustained economic growth, under-supply and increasing demand – will provide a sound base for the housing market.

Interest rates are forecast to be cut at least twice and possibly three times in the next 12 months. Historically when rates start to fall, property prices and rental values begin to climb.

There’s no time like the present, so my advice would be to buy now and make sure you spread your investment over a number of key UK cities to maximise your returns.

 

 

The holy trinity of property investment is low capital outlay, attractiveness to good-quality tenants and the prospect of realising good capital gains once it comes time to sell. Sounds simple, really.  But it may seem to the novice investor that he is being asked to predict the future.

During times like now, when the housing market is the subject of so much speculation, so to speak, many are confused about whether it is wise to even consider entering the buy-to-let market, or extending their investment. And definite answers are not out there; any prospective investor has to think about his own position, and place the wisdom of any possible outlay within a wider context of the potential for a downturn. It’s always good to play ‘what-if’ over market variables such as interest rates, house prices and lender friendliness, as well as more personal considerations like future employment prospects, pension circumstances and your attitude towards risk.

For those who do decide to invest in property, aiming towards new build is an increasingly popular course of action, as it lends itself to a low-maintenance style of stewardship – something that sets it apart from the needy, less energy-efficient Victorian conversion flat, for instance. And with house prices having hit a period of much slower growth, the new homes market seems to have stopped racing ahead price-wise, the better for the average would-be investor to jump on board.

In a very up-and-coming part of London, Bermondsey Square is a mixed-use development with history as well as modern style. Centred around the site of the original Bermondsey Antiques Market, this will take the shape of 76 bespoke apartments, with other amenities including an art house cinema, boutique hotel, offices, restaurants and bars.

Those from around London and beyond will be glad to hear that the weekly Antiques Market will be back once the regeneration scheme is completed; the new space will have enough space for up to 200 market stalls, and will feature other regular markets such as fashion and farmers markets. There will also be one-off events including outdoor cinema, making this area even more than ever a destination for leisure-seekers.

Other nearby attractions, such as Zandra Rhodes’ Fashion and Textile Museum are evidence of a new ‘coolness’. Other nearby attractions, such as Borough Market, the Tate Modern and other South Bank must-sees, are firm London favourites, and the wealth of good transport ticks yet another investor-friendly box.

Bermondsey Square, situated at the junction of Tower Bridge Road and Long Lane, is part of what Southwark Council call a ‘strategic site’. A combination of archaeological interest and bomb damage in the area has meant the area has been underdeveloped – a rarity in London! The neighbourhood is currently home to a diverse mix of architecture, including Georgian, Victorian, loft apartments and 20th-century warehouse buildings.

Under the aegis of Igloo Regeneration Partnership, the new nine-story Bermondsey Square residential building will both have contemporary timber and perforated steel construction and display a section of the ancient remains from the 11th-century Abbey Church in a glass cube within one of the proposed restaurant units.

Bermondsey Square is due for completion in July. Call 020 7420 3023 or 020 7629 3344 or visit bermondseysquare.co.uk.

Milliners Place is the conversion of a former hat factory with the addition of three new buildings on Midland Road to create 119 luxurious one, two and three bedroom apartments. Situated in the town centre, Milliners Place is a five minute drive to the M1 making the North and South of England easily accessible and short walk to the train station, which offers the town’s commuters fast trains to London’s St Pancras in just 23 minutes and an easy commute to Luton Airport.

Redeham Homes has sensitively converted Milliners Place to retain the building’s original Georgian architecture, whilst creating stylish apartments that maximise the available space and light. The apartments have been built to a high specification including a choice of kitchen designs incorporating an integrated stainless steel oven, extractor hood, fridge / freezer and washer dryer. Redeham Homes recognises that different purchasers prefer different apartment layouts to suit their lifestyles and so have created properties that have open plan, semi-open plan and separate kitchens.

The contemporary bathrooms include Roca Laura wall-hung white sanitaryware complemented by Grohe fittings, thermostatic showers and heated towel rails. To provide purchasers with an added level of style and luxury, a range of the apartments include en suite facilities to the principal bedroom. A selection of the apartments benefit from balconies or terraces.
Private parking is also available at the development. Milliners Place is ideally situated for residents to take advantage of the facilities and amenities that Luton has to offer. The Arndale Centre, which has over 120 shops, is within easy walking distance, whilst Luton offers a diverse range of restaurants, bars and leisure facilities.

Prices for the remaining apartments at Milliners Place start from £130,000 for a one-bedroom apartment and from £170,000 for a two-bedroom apartment. Call 01582 456 692 or see redehamhomes.co.uk.

In Birmingham, a city that is seeing some exciting regeneration, Imagine Homes has just acquired The Exchange, an exciting new buy-to-let opportunity. This selection of stylish one-, two and three-bedroom new build apartments is in a highly sought-after location within the famous Jewellery Quarter. With a great selection of bars, restaurants and shops on the doorstep, the city centre hotspots are within easy reach. Birmingham New Street railway station is within walking distance and London is just an hour and a half away by train; road links are also comprehensive, with the M5, M6, M40 and M42 within easy reach. For frequent flyers, Birmingham International Airport is also nearby.

Birmingham has seen a £450 million redevelopment of the Bullring and Mailbox shopping centres. The Jewellery Quarter itself has undergone significant regeneration, with £250 million of public and private money invested over the last ten years, and its reinvention as a sustainable and inclusive urban village will be complete by 2010.

Grant Bovey, CEO of Imagine Homes, says, ‘We are delighted to offer property investors a rare investment opportunity in such a sought-after location. Continued regeneration and inbound investment will continue to encourage strong capital growth and rental demand.’
Imagine Homes offers its customers a worry-free way to invest in residential buy-to-let, sourcing quality new build opportunities in excellent locations with strong capital growth and rental prospects. Imagine Homes also finds the tenants, manages the property and guarantees the customer a unique rental return of 7.5 per cent of the purchase price per year for two years.

Prices at The Exchange currently start at £143,000. For further details and to register your interest telephone 0800 458 5050.

Imagine Homes has many other buy-to-let properties available throughout the UK. Visit imaginehomes.co.uk to find out more.

The Tenant’s Survival Guide by Lesley Henderson is an indispensable book for anyone who rents. A landlord herself, Henderson is passionate about ensuring that tenants are not treated like second-class citizens and has taken it on herself to make sure that all future tenants, be they students or professionals, go into an agreement with a landlord or letting agency armed with the knowledge of the laws that are in place to protect them.

The book covers everything you need to know about being a tenant, including chapters on viewings, the new deposit law, harassment and eviction and how your landlord’s mortgage affects you. The Tenant’s Survival Guide is designed to protect you from the worst and help steer you towards the best in the notoriously uneven world of lettings.

Published by How To Books Ltd and available at £8.99 in major bookshops and online retailers.

Call for ‘exchange ready’ HIPs
With the final phase of the roll-out of home information packs (HIPs) now completed, the Association of Home Information Pack Providers (AHIPP) says the challenge now is to improve and add to the pack.
Mike Ockenden, director general of AHIPP, said: ‘We welcome the full roll-out of HIPs in particular because of the help they give to first-time buyers – but this is only the beginning. We are now looking to work with all other industries involved in the home buying and selling process to develop and improve HIPs and their content, so that they can be fully incorporated into the house buying process.’
For HIPs to fully inform potential buyers about properties they are viewing, it is vital that home condition report (HCR) be made a mandatory part of the pack, and that many of the searches that provide information on flooding, ground movement and contamination are included, says Ockendon.
‘By bringing this information back into the pack and certain documents that are required to complete the legal process, HIPs can be made exchange ready. This means that a buyer who has an offer accepted can pass the pack to his or her lawyer, who can rely on the contents and move quickly to exchange of contracts.
‘Exchange-ready HIPs will remove delays from the process and reduce the number of failed transactions – which have been running at over 25 percent, costing consumers £1 million per day. They will also ease the extraordinarily high level of stress associated with buying and selling homes and reduce the cost of the process. Further, they will give aspiring first-time buyers help in owning their first home.’

NAEA amazed at government spin over HIPs     
The National Association of Estate Agents (NAEA) has voiced its reservations over the contents of the recent update on Home Information Packs (HIPs) from the Department of Communities and Local Government (CLG). Within the document the department states that the government commissioned independent economic research and advice to analyse the impact of HIPs and its interaction with current market conditions.
NAEA raised concerns about aspects of this research which was carried out by Dr Peter Williams of European Economics.
Stewart Lilly, President of NAEA, explained: ‘In particular the main conclusion is that there was no evidence to show that HIPs were affecting transactions or prices and that the market slow-up was due to the economic and financial situation. However, it was accepted that HIPs must have had some effect, although it is really too early to be certain. This begs the question of how a decision to proceed can therefore be made.
‘It is disappointing that Dr Williams did not talk to the stakeholders nor take into account or discuss our recent members’ survey. In my opinion his research seriously underestimates the impact of people “testing the water” and it is incorrect to consider them time-wasters as we all know that this is clearly not the case.
‘I do not believe that a correct analysis of stock levels has taken place and there appears to be no attempt made to check listings of three- or more bedroom properties against smaller ones which would, in our opinion, have shown a clear differentiation and proved that HIPs are affecting supply.
‘It is probably true that transactions and prices have not been affected. It is far too early for this to happen and will occur as a result of a reduction in instructions.
‘My own conclusion is that the Government has proceeded on the basis of a report that did not fully look into all the market conditions and in any case accepts that it is too early to come to many firm conclusions.’