At midnight, the Government launched yet another inquiry into the estate agency market.
The new inquiry’s focus is firmly on buyers rather than sellers, in the same way that last week’s “call for evidence” into the letting agency and leasehold markets is focused on tenants rather than owners.
This latest inquiry has come out of the blue and the timing – at midnight on a weekend – seems curious with website links not initially available. It comes after over 18 months when then Chancellor George Osborne announced in his March 2016 Budget that there would “shortly” be a call for evidence to look at the process of buying a home.
This weekend’s new inquiry is to do with home buying, which Communities Secretary Sajid Javid said should be cheaper, faster and less stressful.
The latest “call for evidence” specifically says that homes put on the market should be “sales ready”.
However, the official statement said that the new inquiry is “not about a return to Home Information Packs”.
The new call for evidence asks for responses from all those involved in home buying, including agents, solicitors and lenders.
DCLG is looking for evidence about gazumping; fall-throughs; providing HIPs-style pre-marketing information; and the speed of the home buying process.
It says that its new research claims:
- Of those that experienced delays, 69% of sellers and 62% of buyers reported stress and worry as a result of the delay
- 46% of sellers had concerns about a buyer changing their mind after making an offer
- 24% of sellers would use a different estate agent if they were to go through the process again
- 32% of sellers and 28% of buyers were dissatisfied with the other party’s solicitor
Javid said: “We want to help everyone have a good quality home they can afford, and improving the process of buying and selling is part of delivering that.
“Buying a home is one of life’s largest investments, so if it goes wrong it can be costly. That’s why we’re determined to take action to make the process cheaper, faster and less stressful.
“This can help save people money and time so they can focus on what matters – finding their dream home.
“I want to hear from the industry on what more we can do to tackle this issue.
“Today’s announcement will build on recent proposals to cut out abuses of leasehold, protections for renters and a crackdown on unfair managing agents – now we are looking at modernising the home buying process.
“The Housing White Paper set out plans to fix the broken housing market, getting the right homes built in the right places and measures to improve affordability and protections for renters and home purchasers.
“This exercise isn’t about adding extra work for buyers and sellers or seeing a return to Home Information Packs: this call for evidence will look at how we can further improve the home buying experience.”
The accompanying press release says: “We have also looked to other countries, such as Denmark and the USA where it’s perceived that home buying and selling works much more smoothly.”
The latest call for evidence will run for six weeks as from today (Sunday). The midnight announcement was made some nine hours before any of the documentation was even online, but we have now updated this story with the link.
https://www.gov.uk/government/news/government-acts-to-improve-the-home-buying-process
By all means let’s review our industry however, first of all, get on with the economy, Brexit and the myriad of issues that are sucking the United Kingdom into a deepening hole!
Let’s get a Survey launched into why this government is a laughing stock! Multiple tactics to deflect from the screaming crisis that our country faces.
Get on with the United Kingdom and Europe or get out of government!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Just perfect.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Is that mean we are living in an ideal world, Where everything is expected to be exact?
As the report says, new strategy is going to destroy the real estate markets’ stability and dynamism, for sure. Not only that, Govt is creating hostilities among the buyers and sellers and the Tenants and Landlords making estate and letting agents look like bunch of clowns .
It would have been better for everyone if Mr Sajid did propose to nationalise the whole of Housing sector like Ex-USSR or DPRK and let the local governments running it.
I just don’t get it how come someone has no experience in Housing sector be appointed as a head of the department? It’s like a practice of Zimbabwe or Elsewhere where a day Labourer can be a minister of any department as long as the person can sing a party anthem and worship the leader?
As a banker Mr Javid was fit for trade, commerce, banking or even as Brexit secretary! But definitely not as Housing secretary. He is the wrong person in a wrong department. It’s like a a bricklayer is doing the gas Engineer’s job! Boris Jhonson would be the most appropriate person in this post. It looks like Ms May has got all the wrong in wrong positions around her.
Shame
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
So over 75% of vendors are happy with their Estate Agent.
Buying a house is expensive?
you don’t say
Most first time buyers have no idea of the ‘hidden costs’ , stamp duty and solicitors fees to name just two.
Why don’t the government ‘crack down ‘ on those?Of course people are worried that their buyer will pull out. The system makes it easy for them to do so. If the government are going to tighten up on anything, putting a solid system in place that guarantees an offer, once accepted, is binding – would be more beneficial than getting homes ‘sale ready’. More red tape and jumping through hoops
We see countless examples of a buyer wanting to buy and a vendor wanting to sell and it still takes three months to complete.A conveyancing solicitor called one of our vendors this week to ask how much stamp duty she paid on a shared ownership house under the stamp duty threshold. Speechless.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
The biggest delay are caused by part time conveyancers and, thanks to government cut backs, late searches. Some local authorities are taking 12 – 16 weeks to get the search results and this is where part of the stress is caused. Perhaps a quick survey of members by the toothless RICS and NAEA would provide quick answers but as the government doesn’t consult these bodies, eg money laundering rules, they will spend a fortune putting a paper together.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
If only all concerned would appreciate that buying and selling will always be an “Imperfect process” and give more credibility to seasoned professional estate agents to make it less so.
It seems that this, and previous governments are hell-bent on destroying the profession and intent on delivering a service for free and we all know that in the end that would l be disaster for both buyers and sellers…….. and heaven only knows what a Corbyn led government would do.
The process is not broken, but could be improved and gazumping eliminated, if buyers and sellers had to sign a contract within 7 days of agreeing the deal subject only to mortgage approval, always assuming that a clear title and searches are available at the start.
That is my ideal scenario with committed buyers and sellers from the start, but guess what, it probably wouldn’t suit most of the public, because they like the “wriggle room” that prevails.
The estate agency industry needs to shout loud and make its case against these ridiculous suggestions, because all these niggling changes that are being called for are led by the minority. We also need to tell these new politicians that it is our responsibility to report all offers to the vendor and it 99/100 is the vendor who creates gazumping and not the agents.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
As a colleague said earlier ‘76% of clients are happy with their agent’ WOW!!!
How about this…
1. No sale agreed unless the buyer has a mortgage agreed in principle or proof of cash. This is a recognised document from a lender or bank
2. Title insurance
3. All properties to have a local authority search before marketing.
4. Once a sale is agreed the buyer has 14 days to offer an exchange of contracts. After the buyer has offered an exchange of contracts the seller cannot withdraw for a set period of time. If they sell to another party within a year they pay the disappointed buyer. The uplift in price.
SIMPLES!!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Oh my God. What moron commissioned a poll to get the feedback from the house buyers and sellers? Seriously? .
Even though I work in central London as an estate agent with the highest possible standards, I went through the process again of buying a home. Leave aside the racism undertone, estate agent incompetence, horrendous communication, seller’s mental health issues and threats, the sale went through smoothly.
Until the ‘human’ element is taken out of the home buying process, the results will always be the same. You cannot account for government-applied issues – brexit, stamp duty hikes, market mood, second home tax, etC
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Communities Secretary Sajid Javid said should be cheaper, faster and less stressful.
When do we get politicians who actually undrrstand the basics.
The biggest rip off is the finds drained from homeowners via securitisation of lenders selling on mortgage repayments.The whole repossession process is antiquated and run by pitbull lawyers.More should be done to help protect homeowners from possession starting at 2 to 3 month arrears.Too many banks act fraudulantly
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Really Trevor? There should be “savings or backup” for those who have mortgages surely? Three months even six months payments should in an ideal world be put aside and, as our parents and grand parents used to say “for a rainy day”. Many would prefer to spend it on meals out as they cannot be bothered or cannot cook and several cups of Costa coffe@ £3,00 per cup per day!
There should be “savings or backup” for those who have mortgages or even rent payments, but it seems many are living from month to month. ..There are many reasons for mortgage arrears and a post here could not even start to scratch the surface why such an occasion should exisit. Needless to say what ever the reason it would always be someone elses fault that it has happened. Thats the world we live in these days, blame someone else.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Ros is a proper old fashioned journo and anyone seeking to denigrate her does so at their peril. You’ve only go tot look at the superiority of PIE vs all the others to see why. One thing I would say though is that it’s great, because the article was put up over the weekend, to see that most of the trolls who populate the week day posts are absent, It’s like a breath of fresh air.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Is it? I haven’t seen anything thus far more insightful than week day, quite the reverse but that aside..
Straw poll, how much of a problem is gazumping anyway? We will do around 200 sales a year and once a sale is agreed and flagged as such maybe 2 or 3 chancers will come in over the top of it, most gazumping occurs when somebody unproceedable views, becomes proceedable while it’s agreed to somebody else and has a belated go at it, usually at near to or more than it’s guide
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
The real issues are a shortage of houses; reduced resources at local authorities to provide responses to search enquiries; failure of seller to respond to enquiries; aml checks; waiting for lender to confirm funds are available; buyers having unrealistic expectations as to timescale (they don’t appreciate what’s actually involved);issues with title previously ignored; concerns raised by lender in relation to title (insurance doesn’t address all the issues with title); the fact that buyers and sellers and everyone else involved are human beings; tax; the unhelpful repetition of myths in the guise of “helpful advice”.
I know of no solicitor who does not set out in writing all costs at start of the retainer. To not do so would attract a cost of at least £400 when the client complains to the Legal Ombudsman. Why would anyone take the risk?
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
In some countries there’s a rule of compulsory deposits. If the buyer pulls out , the seller keeps the deposit, similarly if the seller changes his mind then the buyer pays double the deposit. In both cases the agent gets a cut. Both the buyer and seller think many times before pulling out. We’ve all seen buyers/seller pulling out after many weeks/months into the deal and the fact that there are no repercussions on any party, we see many dropouts
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Your post – your first on here I suspect – is totally out of line. Roz is breaking her weekend to break this story and most of us on here (the regulars especially) appreciate her efforts. It’s NEWS and it’s brought here without comment from Roz, she leaves that up to the posters. Maybe you should just stick the Negotiator, we don’t need your snooty, lofty pronunciations here.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
pf21 I do try to be moderately civil to those who post drivel on here but in your case I will make an exception.
You are an utter prat.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
No, not the first actually. If being positive is being snooty then it seems you may be in the wrong business. As for breaking her weekend, assuming it’s not news that she has created which she does very often mainly to slander some poor soul or company, its not actually that important and could wait for Monday! 911 was news, whatever a Government official says in the UK, in particular, Savjid Javid or the useless housing Minister we now have is just running to catch up as the political system in this Country is just not fit for the 21st century, but thats another matter
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
Sounds like something Nick Salmon would say ! Then again he is pretty uncouth as well
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register