There have been mixed reports about the state of the property market this summer; and when you stop to consider the sheer number of different indices from which you can base your opinion; it’s somewhat unsurprising that reports range from the optimistic to the downright depressing.

Primelocation and Zoopla for example, track the asking price, not the sales price, which provides a current, if rather an inaccurate and negative view of the market. The Land Registry House Price Index (HPI) on the other hand is based on the sold price. Although perhaps not as up to date as other reports, the HPI does have the benefit of being the most accurate indicator of the state of the housing market.

So, how is property faring in the summer of 2010? According to the HPI, house prices in London at least are at the same levels they were in 2007.

In England and Wales there has been a significant growth in the volume of properties on the market that have sold at over £250,000; this growth more than doubles at the highest end of the market.  In London the number of properties sold for more than £2,000,000 in April 2010 has almost quadrupled compared to the same time last year.

As Manse & Garret predicted three years ago, the high end prime central London market is flourishing, in particular in Kensington & Chelsea, where the average price of a property has increased by more than £6,000 since May. There will continue to be demand for high end property in prime central London, where property tempts buyers not only from the capital and the UK, but from the rest of the world.  The UK property market, like the UK economy may still be on shaky ground, but for overseas investors prime central London real estate will always be a fairly safe haven for cash.

Giggles from the offices of London Property Buyers Agents

What a fabulous story for a Friday blog.

It turns out that two weeks ago, Boris Johnson erected a weird wooden shed on the first floor roof of his Grade II listed home in Angel.  But yesterday, Islington planners instructed him to pull it down after a tip-off from a disgruntled neighbour.  Most people would be pretty fed up that NIMBY neighbours complained and for the planners involvement but according to many newspaper reports, Bojo is apparently ‘grateful for the advice’.  Isn’t that nice?

Maybe Boris has just realised that sticking an ugly shed on top of a roof has tarnished any pretensions he had to being a ‘classy bloke’.

Technorati Tags: Boris Johnson, Islington house, plannning permission, shed

Tags: Boris Johnson, Islington house, plannning permission, shed

Musings of a London Property Search Agent

Oh the joy of the British legal system!  While on the one hand everyone I know is rejoicing at the judgement published on Friday, ruling that certain terms in Foxtons terms and conditions are unfair, the ensuing press coverage over the weekend implies that arguments over what does and what doesn’t constitute an unfair contract term for the lettings industry, will run and run.

Many consumer landlords have been stung over the years over the following terms in the Foxtons contract:

• requiring landlords to pay further commission after the initial one year period where the tenant stays in the property even if Foxtons have had nothing to do with persuading tenants to stay;
• requiring landlords to pay further commission even if the landlord has sold the property;
• claiming a full estate agents commission if the tenant decides to buy the property. 

The problem is that the Foxtons contract for both sales and lettings is a one page document with the terms and conditions written in tiny print, which the average consumer wouldn’t bother to read.  Looking at the judgement closely, the Judge, Mr Justice Mann makes clear that he wasn’t asked to judge whether renewal clauses of this type are always unfair.  He seems to imply that as long as letting agents have their terms and conditions in a reasonable typeface, they can carry on charging what they like.

Foxtons lost this case because the charges weren’t clear, the charges were excessive and a potential landlord would be ‘astonished’ about the size of the commission due.

ARLA, the Association of Residential Lettings Agents immediately issued a press release on Friday, clarifying that the judgement in no way opens its members to issuing refunds in light of the judgement.

If you would like a property manager who will ensure you are not tied into ridiculous contracts and who will manage your buy-to-let portfolio in a very cost effective way then try Diana Machin of Personal Property Management on 020 7607 1712.

If you want a good buy-to-let which should hold it’s value or appreciate, call us, arguably the best Buy-to-let Property Search Agents in London and Brighton and we may even find you a tenant for free!

Technorati Tags: ARLA, Foxtons, London Property Search Agents, Mr Justice Mann, OFT vs Foxtons [2009], Unfair Contract Terms

Tags: ARLA, Foxtons, London Property Search Agents, Mr Justice Mann, OFT vs Foxtons [2009], Unfair Contract Terms