Huge fine for energy firm

One of the UK’s big six energy firms received an unexpected Christmas present from the UK’s energy regulator, Ofgem…in the form of a fine for nearly £2 million for mis-selling its contracts to customers. The regulator announced just before Christmas that the energy giant, NPower, was to be fined £1.8 million for failing to take the necessary action in relation to stopping the mis-selling of its contracts to customers. Read more

Tags: energy giant, mystery, licence standards, Complaint, behaviour, energy firm fine, sale, ofgem

Housing slide gives hope to first time buyers

New data from the Royal Institution of Chartered Surveyors (RICS) claims that house prices are falling at their fastest rate since 1978.

For the seventh consecutive month, a majority of surveyors reported that sale prices are falling – and that is being felt in every part of the UK.

The negative trend is also being reported by ever-more surveyors – 64.1 per cent confirming falling prices in February compared to just 54.7 per cent in January.

RICS spokesman Ian Perry warned: “While there is very little new supply coming onto the market, it is unlikely there will be significant price drops in the short term but the build up of unsold stocks will encourage buyers to negotiate lower asking prices.”

Nevertheless, this could be a positive development for first time buyers, who have seen the price of even the most modest home soar far beyond their reach in recent years.

Ulster Bank head of mortgages Derek Wilson told the Belfast Telegraph: “The expectation is that transaction numbers will now increase and that first time buyers will become increasingly active with asking prices considered to be more realistic.”

Tags: housing, the Belfast Telegraph, property, sale prices, reach, little new supply, sale, Derek Wilson

Consumers should be careful about sale and rent back companies

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

Tags: careful, sale, rent, properties, consumers

Hips introduced today

Home insurance packs (Hips) are introduced today across England and Wales.

The Office of Fair Trading (OFT) also warned estate agents yesterday that it would get tough on those who were found in breach of the new regulations.

The packs are now mandatory on the sale of all four-bedrooms or more homes, with all other houses to be covered as the policy is rolled out in future months.

A ban can now be imposed by the OFT on any estate agent found to be in breach of the new Hips regulations, after the issuing of a Warning Order first.

Head of consumer protection of the OFT Mike Haley said that “it is important that agents are aware of their obligations and the possible consequences if they fail to comply.

“If an agent fails to comply, this could trigger an investigation into an agent’s fitness to continue estate agency work.”

Originally drafted in June 2006, the legislation has suffered many setbacks, including facing a parliamentary vote to decide whether Hips be scrapped, and also being delayed from its original introduction date on 1st June this year.

Tags: england and wales, vote, fitness, sale, business, office of fair trading, protection, consumer

Divorcee might lose home thanks to husbandÂ’s debts

An unpaid £3,000 debt to the Inland Revenue could force a divorcee out of her home.

The £3,000 original debt, left unpaid for decades by her former husband from whom she divorced more than 20 years, has increased to £73,000, an amount she could only afford to pay if she sells her £150,000 semi-detached house.

“This has come as a complete shock. I don’t really know anything about what’s happened in court and can’t talk about it until I talk to my solicitor,” Vivienne Avis, 52, commented.

Although she has not lived with her husband for the past 20 years, a judge ruled that Raymond’s creditors could demand the sale of the home which was home to the couple when they were living together.

“The interests of the bankrupt’s creditors outweigh all other considerations unless the circumstances of the case are exceptional,” Lord Justice Chadwick said.

Thousands of divorcees whose former spouses are in financial difficulties could be affected by the ruling, which could set a legal precedent.

“It is going to send shockwaves through people like us who believe they have legally binding divorce set bankrupt settlements only to find it is not worth the paper it is written on,” Mr Avis, who contracted the debt, concluded.

Tags: husbandÂ, debt, semi-detached house."This, Mr Avis, debts, Creditor, sale

Rics urges Hips postponement

The Royal Institution of Chartered Surveyors (Rics) has called for the introduction of home information packs (Hips) to be postponed.

The information packs, due to launch in 100 days, will give future buyers information estate agents might not see fit to disclose at the point of sale, such as local searches, sales statements and leasehold documentation as well as an energy performance certificate revealing their future home’s level of energy efficiency.

They are intended to encourage greater transparency in the selling process and slash the high number of sales which fall through each year.

Under current government plans, the information packs will become mandatory from June.

But Rics spokesman Jeremy Leaf insists comprehensive reform measures are needed to “sweep up all the problems with home buying and selling”, not just stop-gap solutions.

More seriously, Hips in their current form are irredeemably “depleted”, with “most of the stuffing removed”, he claims.

Meanwhile, the director general of the Association of Home Information Pack Providers (AHIPP) Mike Ockenden has staunchly defended the information packs, arguing that they would “greatly reduce the needless stress associated with buying and selling homes in this country”.

Tags: country, home buying, sale, year.Under current government, government, point, buying