Estate agents claim HIPs affecting the market
November 13, 2007 by admin
Filed under News, News-Mortgages
According to many estate agents the controversial Home Information Packs, of HIPs, are having an adverse effect on the housing market, with fewer homeowners with larger properties now putting their homes up for sale.
According to the National Association of Estate Agents there are fewer larger properties on the market now than is normally expected at this time of the year. Many estate agents put this down to consumer reluctance to deal with Home Information Packs, which have been at the centre of controversy since they were introduced.
HIPs are now required for all homes being sold that have three or more bedrooms. Eventually HIPs will be rolled out to all sizes of properties that are being sold, and there are concerns that this could affect the market further. According the government officials the Home Information Packs are of benefit to consumers. However, many industry professionals disagree and state that the packs are harming the housing market and putting many homeowners off selling.
The Chief Executive of the National Association of Estate Agents stated: “Clearly everyone accepts that there are a number of financial and economic factors that have caused the market to take a breather after seven hectic years. However, these figures show that there is an anomaly between instructions on properties where a Hip is required and where one is not.”
He also said: “With sales slowing and normally a traditional autumn bulge in instructions, it would be normal to expect stock levels to be significantly higher. This once again appears to show the adverse effect Hips are having on the market, the lives of consumers and indeed the overall economy.”
Alan Wright
13th November 2007
Consumers should be careful about sale and rent back companies
September 14, 2007 by admin
Filed under News, News-Mortgages
Consumers, and in particular pensioners, are being urged by campaigners and authorities to be extremely careful when it comes to sale and rent back companies, which focus on buying up properties from homeowners and then renting them back to the homeowner.
A number of sale and rent back companies have come into operation over recent years, targeting those that have assets worth substantial amounts of money but have little in the way of disposable cash.
The concern is over unregulated companies, which are often set up by buy to let landlords that want to buy property at below market price and then sell on at a profit. Often, these unregulated firms offer only a short guarantee of tenure to the homeowner after purchasing the property, after which the homeowner could well find himself or herself without a home and facing eviction so that the landlord can sell the property on and make a tidy profit.
If the firm is unregulated there is little in the way of protection for the consumer, and this is something that homeowners need to be very careful of, state experts.
One equity release specialist stated: ‘People should be aware they face losing their homes if they sign up to a sale-and-rent scheme. There are safer alternatives. Bona fide regulated equity release plans offer retired homeowners the chance to release cash against their homes but have complete security of tenure.’
He added: ‘Sale-and-rent may seem attractive to those weighed down by debt and mortgage repayments, but with no regulator to oversee their activities; there is now a new type of landlord trying to take advantage of customers’ circumstances.’
Tom Smith
14th September 2007
