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

Musings of a London Property Search Agent

News has reached us that the Conservatives promise to scrap HIPS immediately they win the next general election is to be published in their manifesto this Autumn.

According to Estate Agent Today, Shadow Housing Minister Grant Schapps gave the news during a meeting with Peter Bolton King, the Chief Executive of the NAEA and President Gary Smith.  The energy performance certificate will be retained, in accordance with European legistation encouraging eco-friendly housing targets.

Now we weren’t the biggest supporters of HIPS when they were first mooted but they have undoubtedly assisted the lack of supply in the housing market at the moment, which has in our view supported pricing in the London property market.  This news will mean two things.

Firstly, if Brown waits till next June to go to the polls, the usually busy Spring season will be marred by a chronic lack of property, particularly at the bottom end, as people wait for the Tories to get in and for the scheme to be scrapped.

Secondly, less serious vendors are more likely to return to the marketplace, increasing supply of London property for sale, which in a difficult economic climate could exert downward pressure on pricing.

Conclusions?  Next summer will be interesting for buyers, vendors and London Property Search Agents like us.  Vendors who take the plunge early next year are likely to be few and far between at the bottom end.  There will be a lack of supply until June  and then we could have a slightly crazy month or two before the summer holidays, when buyers suddenly have more properties to choose from and vendors find themselves with more competition.

Don’t you just love politicians?  This London Property Search Agent thinks they can do better

Technorati Tags: Conservatives, Hips, London Property Search Agent, the housing market

Tags: Conservatives, Hips, London Property Search Agent, the housing market

Musings of a London Property Search Agent

Regular readers know that we have commented on the mini-boom in the London residential property market in recent weeks and the big question on all agents lips is whether or not it will continue.  The summer months usually mean buyers and sellers take a break from the property hunt while the kids are off school, but the heat wave this year has put a dampener on things as Londoners put off the big move in favour of relaxing in the sun.

For 5 or 6 weeks now, agents have been bemoaning the lack of property they have to sell and complaining about the ‘tens of buyers’ they have for every property.  Likewise, London Property Search Agents like ourselves have been predominantly doing off-market property deals for over a year now, but those who normally rely almost exclusively on estate agents have had to play catch up and try to adopt alternative means of finding property, as we do.

However with the heat wave predicted by many to continue into the weekend, viewings across London are down as would-be buyers ditch the property search for the pool, despite some forecasts predicting heavy showers again this weekend.   With a hot summer on the cards this year, agents and London Property Search Agents are wondering if the traditional summer lull will come early.

As for us, your friendly London Property Search Agents in the know, are thinking it may have already begun – which is great news for property hunters, hungry for a bargain unafraid of the heat.  Incidentally, all our cars have air-con, so no excuses then!

Technorati Tags: heatwave, London property, london property hunt, London Property Search Agent, London Property Search Agents, property hunt

Tags: heatwave, London property, london property hunt, London Property Search Agent, London Property Search Agents, property hunt