Letting agents 'will be busy up to Christmas'
Published: 09-Dec-2009
This article was brought to you by Rentman the premium rent management software.
Letting agents and landlords are likely to have high levels of tenant activity in the run-up to Christmas, with 65 per cent of tenants looking for new accommodation hoping to move in before the end of the year.
The sustained high demand is a contrast to the typically quiet periods experienced by landlords and letting agents at this time of year.
But with tenants currently cautious about purchasing their own home and rents expected to increase next year, December is expected to be a busy time for those in the residential lettings sector.
Phil Calderbank, director at Lettingsearch.co.uk, the company which carried out the survey, said: "All signs are pointing to high levels of market activity right up until Christmas itself, which is great source of seasonal cheer for lettings professionals, allowing them to cut down on void periods."
Last week, Rics predicted that rents will rise next year due to a drop in the number of rental properties coming on to the market in the third quarter of 2009.
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Showing posts with label news. Show all posts
Showing posts with label news. Show all posts
Saturday, December 12, 2009
Monday, December 07, 2009
From Estate Agent Today!
Lenders back off with a new 'six month rule'
Monday 7th December 2009
Estate Agent Today would be interested in hearing from agents experiencing problems with selling properties that have been owned by the seller for six months or less.
Mark Savill, of Novahomes in Chard, Somerset, is one agent who reports a sale unexpectedly failing at the last minute.
The borrower had received the mortgage offer, signed the mortgage deed and given the solicitor the deposit. At the eleventh hour, the lender refused to advance the funds as the owner had only owned the house since October.
“The property in question was bought as a repossession to do up and sell on,” he said. The property had been refurbished when it was so nearly sold.
“The lender in this case was RBS. The Halifax now has the same policy. One problem – it does not appear anywhere in their lending criteria that the seller must have owned the property for a minimum of six months otherwise it will not be suitable as security.”
As the agent in this case points out, this restriction has implications for buyers, sellers and – ironically – lenders themselves.
Buyers will find themselves out of pocket on having made abortive mortgage arrangements if the rug is so suddenly pulled at the last minute, whilst sellers will have a property that cannot be sold for six months unless they find a cash buyer – who might pay less.
Lenders could also find themselves getting less for repos as soon as potential developers realise that their holding costs will be higher.
The agent says: “The real scandal is that this is not policy that is being disclosed to anyone up-front in lending criteria.”
Estate Agent Today is aware of a crackdown by some lenders to buy-to-let purchasers at auction where the property has been owned six months or less, and there was a practice note issued to lawyers last spring, in the context of mortgage fraud, which suggested they should ask sellers selling up in less than six months why they were doing so.
In this particular case, the explanation was straightforward.
Savill says the sellers are simply experienced property renovators. The would-be purchasers of this typical first-time buyer property wanted to live in it. It is hard to see where the lenders could have perceived any risk in a beautifully done-up property (we’ve seen the pictures) going for just under £125,000.
Meanwhile, the property concerned is lingering on Novahomes books, and presumably stands little to no chance of being sold until next March.
Thoughts, anyone?
Monday 7th December 2009
Estate Agent Today would be interested in hearing from agents experiencing problems with selling properties that have been owned by the seller for six months or less.
Mark Savill, of Novahomes in Chard, Somerset, is one agent who reports a sale unexpectedly failing at the last minute.
The borrower had received the mortgage offer, signed the mortgage deed and given the solicitor the deposit. At the eleventh hour, the lender refused to advance the funds as the owner had only owned the house since October.
“The property in question was bought as a repossession to do up and sell on,” he said. The property had been refurbished when it was so nearly sold.
“The lender in this case was RBS. The Halifax now has the same policy. One problem – it does not appear anywhere in their lending criteria that the seller must have owned the property for a minimum of six months otherwise it will not be suitable as security.”
As the agent in this case points out, this restriction has implications for buyers, sellers and – ironically – lenders themselves.
Buyers will find themselves out of pocket on having made abortive mortgage arrangements if the rug is so suddenly pulled at the last minute, whilst sellers will have a property that cannot be sold for six months unless they find a cash buyer – who might pay less.
Lenders could also find themselves getting less for repos as soon as potential developers realise that their holding costs will be higher.
The agent says: “The real scandal is that this is not policy that is being disclosed to anyone up-front in lending criteria.”
Estate Agent Today is aware of a crackdown by some lenders to buy-to-let purchasers at auction where the property has been owned six months or less, and there was a practice note issued to lawyers last spring, in the context of mortgage fraud, which suggested they should ask sellers selling up in less than six months why they were doing so.
In this particular case, the explanation was straightforward.
Savill says the sellers are simply experienced property renovators. The would-be purchasers of this typical first-time buyer property wanted to live in it. It is hard to see where the lenders could have perceived any risk in a beautifully done-up property (we’ve seen the pictures) going for just under £125,000.
Meanwhile, the property concerned is lingering on Novahomes books, and presumably stands little to no chance of being sold until next March.
Thoughts, anyone?
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