Weaker bargaining power for tenants reported

It has been reported that tenants in the UK now have weaker bargaining power when it comes to renting a property, and this is the result of fewer homes coming into the market for rent, according to industry officials. Read more

Tags: fewer homes, difficult market conditions, Association, Renting, National, RICS, tenants, sector

RICS makes prediction on house prices

Recently the Royal Institute of Chartered Surveyors has made some predictions with regards to house price movement in the UK. Read more

Tags: Royal Institute of Chartered Surveyors, Unit, downturn, Royal Institution of Chartered Surveyors, RICS

Increasing number of rental properties coming onto the market

Over recent years consumers that were looking to rent a home in the private sector often found that the properties were being snapped up before they even had a chance to arrange a viewing, leaving them to start from scratch and select another property from the limited choice available. However, with the problems that have hit the housing and mortgage sectors recent figures show that a rising number of rental properties in the private sector are coming onto the market. Read more

Tags: official, Mortgages, rent, Business Finance, rental properties, RICS, present, duty

Housing market ‘in worst slump since 1992′

The housing market in the UK has fallen to its worst economic slump since 1992 when it last came out of a financial recession, according to the Royal Institute of Chartered Surveyors (RICS).

With the balance dropping for the sixth month in succession, 54.7 per cent more chartered surveyors reported a fall rather than a rise in house prices, the highest number for 15 years.

Jeremy Leaf, a spokesman for the RICS, said: “A lack of demand and confidence in the housing market is clearly behind the recent price slowdown.”

He added that tightening mortgage lending criteria is a block to many who are keen to take the “housing market plunge” while sellers are struggling to market properties to consumers content to “watch the current economic theatre from the wings”.

According to surveyors, the only part of the UK where prices continue to rise is Scotland with the net balance of surveyors in that country reporting price rises edging up from three per cent to seven per cent.

Meanwhile, a man who did not make any mortgage repayments for 15 years has had his debt erased by judge in an appeal court.

Tags: consumers, demand, Surveying, Mortgage loan, property, RICS, market, Real estate

Buy-to-let ‘out of reach’

The buy-to-let market is now out of reach of the ordinary investor, due to spiralling prices, it was claimed this week.

The Royal Institution of Chartered Surveyors (RICS) has found that the average deposit a would-be landlord needs to put down to get hold of a rental property is £65,000, or 30 per cent of the property’s value.

In early 2002, this figure was just £10,100.

The increase has been brought about by factors common across all parts of the housing market, such as high interest rates and contracting supply, but also by factors specific to buy-to-let.

In particular, rental cover ratios for mortgages are high, with most landlords being asked to ensure that rental yields on their properties will cover 125 per cent of the mortgage before a lender will consider handing the money over.

Senior economist at RICS David Stubbs said: “It takes more capital than ever to set up a buy-to-let investment. Would-be investors who have missed out on the impressive returns of previous years are now finding the hurdles to property investment are higher than they imagined.

“However, existing landlords should be able to use the equity in their past investment properties to fund the deposit needed for new ones, and this should ensure that demand from the buy-to-let sector does not dry up entirely.”

Tags: royal, RICS, David Stubbs, surveyors, Chartered, equity, investor

Rics takes legal action over Hips

Controversial government plans to introduce Home Information Packs (Hips) to the home-selling process have been dealt a big blow.

The Royal Institute of Chartered Surveyors (Rics) has stunned the property industry by launching a legal challenge against the government just days before Hips become law.

In an unprecedented move for the organisation, officials at Rics have announced that Judicial Review Proceedings have commenced against the Department for Communities and Local Government.

The move centres on the government’s perceived ‘failure to carry out proper consultation prior to implementing new legislation to bring in HIPs’ and is the first time in Rics’ 136-year history that it has launched a legal challenge against the government.

“Rics has not made the decision to commence Judicial Review proceedings lightly,” said Teresa Graham, chairman of Rics’ regulatory board.

“We have exhausted all the alternatives and greatly regret that we were left with no other option if we are to protect the public’s property interests.”

The move has been blasted by the Association of Home Information Pack Providers (Ahipp), which also moved to reassure those training to be employed in the Hips industry that the packs will still be introduced on June 1st.

“It is difficult to understand why Rics has taken this latest step against Hips when they are in the process of training both home inspectors and DEAs (domestic energy assessors) and in addition, play a prominent role within the Hips industry, as a certification scheme,” said Mike Ockenden, Ahipp’s director general.

“However, those who have trained or are currently training to become home inspectors or domestic energy assessors should not be concerned, this latest move will not impact on their future training or their future career progression within the Hips industry.”

An 11th-hour vote is due to take place today (May 16th) in the House of Commons over whether Hips should be introduced while the whole scheme has seemingly been dealt another blow.

Chancellor of the exchequer and prime-minister in waiting Gordon Brown has failed to publicly give his opinion on Hips, leading to further confusion as to whether they will be given the go-ahead.

Tags: home inspectors, director general, Royal Institute of Chartered Surveyors, proper consultation, RICS, ockenden, Law in the United Kingdom