NAEA & ARLA WELCOME LABOUR BACKBENCH CALL FOR STAMP DUTY “HOLIDAY” EXTENSION

A group of Labour MPs have put pressure on the Government to extend the current stamp duty exemption for properties under the £175,000 threshold – issuing an Early Day Motion on the issue.

Peter Bolton-King, Chief Executive of the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA), comments:

“The current Stamp Duty “holiday” for properties lower than £175.000 is due to expire at the start of 2010. The housing market is on the road to recovery; in particular, we’re seeing the return of first time buyers. If the Stamp Duty exemption is not extended at this fragile point of recovery, we fear that months of work will instantly unravel causing a great deal of damage to the market.

“The industry is crying out for the Chancellor to take action in his Pre Budget Report next week - in a recent survey by the NAEA, 91 per cent of estate agents called for the threshold to remain at £175,000 for the foreseeable future.”

Last month, industry heavyweights added their support to the 1808 Coalition, set up by the National Association of Estate Agents (NAEA) and the Association of Residential Lettings Agents (ARLA) to campaign for the Government to modernise Stamp Duty.

1808 Coalition partners are: · Association of Mortgage Intermediaries (AMI) · Association of Residential Lettings Agents (ARLA) · Building Societies Association (BSA) · Council of Mortgage Lenders (CML) · Home Builders Federation (HBF) · National Association of Estate Agents (NAEA) · National Landlords Association (NLA)

Anyone wishing to register comments on the campaign, or on Stamp Duty, should visit: http://www.nfopp.co.uk/1808

NAEA comment on the latest Nationwide figures

Following the publication of the latest Nationwide figures, National Association of Estate Agents chief executive, Peter Bolton King, said:

"The good news about Nationwide’s figures is not the rise in house prices but the suggestion that sellers are now coming back into the market. The past few months have seen a surge in demand amongst buyers.

“As sellers come onto the market we may see a levelling out of house prices, but we will also see a far firmer foundation for a real market recovery. The Government must now do all it can to help this process, beginning with an extension to the current Stamp Duty holiday and a commitment to reform stamp duty into a tax that works for the housing market, not against it.”

NAEA Reaction to CML mortgage lending figures

Following the publication of the latest CML figures, National Association of Estate Agents chief executive, Peter Bolton King, said:

“The pick up in house purchase activity reaffirms our views that the market is making slow but steady steps to recovery. The findings from our latest market report showed just this; that demand for property has returned, particularly among first-time buyers. While this is all well and good for the first phase of recovery, more needs to be done to allow the market to enter the second phase.

“Lenders need to do much more in order to help facilitate the second phase of housing market recovery and we reiterate our concern over the FSA proposals to put tighter reigns on the mortgage lending process. The Government must also play their part in nurturing the recovery by extending the holiday on stamp duty.”

 

NAEA RESPONSE TO LATEST CML FIGURES

Commenting on CML figures released today, National Association of Estate Agents President Gary Smith said:

“What we are seeing is a market inching its way back to recovery. First time buyers have returned and now these figures show that house movers are also returning to the market – families wishing to upgrade or young couples needing a bigger house to raise a family.

“For the first half of this year the NAEA’s own figures recorded the return of first time buyers; now the rest of the market is following. That is a sure sign that demand is returning and people believe that now is a good time to get a bargain.

“There is a long way to go before things stabilise – and a real need for sensible Government policies and responsible lending – but indicators do suggest that the bottom has been reached and that the slow process of recovery may have begun.”

SALES REMAIN HIGH

POLITICIANS and banks must do more to sustain improvements in the housing market, Britain’s estate agents warn today, after activity stabilised in June.

The National Association of Estate Agents (NAEA) found that the average agent continued to make strong sales, despite having fewer properties available for sale resulting in slightly fewer people searching for a new home than in May.

Agents also reported that buyers are increasingly prepared to pay what a seller asks for a property – after the difference between asking and selling prices shrank to just 1.9 per cent – down from a 6.3 per cent difference in May.

NAEA President Gary Smith said: “The housing market is in a far stronger position than it was 12 months ago. After several months of continuous improvement the market stabilised in June, ahead of an expected seasonal dip throughout the summer.

 “The Government should scrap Home Information Packs and must pressure banks to ensure lending is available. We know that there is demand for property and that our professional agents are successfully finding buyers for their clients’ properties.

“It is in the interests of the UK as a whole that the upturn in the housing market that has been noted in the first half of 2009 is sustained and nurtured into a full recovery. The Government must do more to ensure that money that has been given to banks finds its way through the system and into the housing market.”

The average estate agent had 290 house hunters registered in June, down from 299 in May. They had 64 properties for sale, down from 69 in May and a high of 100 in December 2008. However agents continued to make sales, with the average professional agent selling 10 homes in June for the third month in a row, double the amount sold during the worst of the market downturn in August 2008.

Last week an independent survey commissioned by the NAEA found that almost a quarter of people – 22.5 per cent – are unable to find a mortgage that they qualify for anywhere in the market. And 56 per cent of those polled believed that a combination of relaxed restrictions and lower deposit requirements would increase the chance of them buying a property.

NAEA RESPONSE TO HALIFAX FIGURES

Following the publication of Halifax figures revealing a 2.6 per cent increase in house prices in May, Peter Bolton King, chief executive of the National Association of Estate Agents, said:

"This is one more indicator that the pent-up demand in the housing market is beginning to move. Our agents are reporting increased sales, more people wanting to look for property and a healthy resurgence in first time buyers.

"However it would be silly to speak as if the property market has recovered; and the Government must do everything in its power to help ensure that this is not a bubble. Specifically they must re-examine stamp duty, which is a tax on aspiration and a barrier for thousands of first time buyers."

PROPERTY SALES REACH 18-MONTH HIGH

Estate agents sold more houses in April than in any month since October, 2007, new figures from the National Association of Estate Agents reveal.

The average estate agent sold ten properties in April, up from eight in March and a low point of five in August 2008. 

Chief executive of the National Association of Estate Agents, Peter Bolton King, said: "What we are beginning to see now are consistent positive indicators that have held firm or improved since the beginning of the year.

"Six months ago people were talking about how British people\'s attitude to owning property had changed in the recession. 

“The NAEA always said that this was nonsense, and that demand for property remained strong, but confidence in the market had gone.

"These figures show that this confidence is returning."

NAEA: RESPONSE TO CML FIGURES

Following the publication of the Council of Mortgage Lenders latest monthly lending survey, Peter Bolton King, chief executive of the National Association of Estate Agents, said:

“First time buyers believe that there are bargains to be had in property at the moment, and the upshot of this is that confidence is returning to the market.

“Every measure by every organisation has shown that the fall in house prices is slowing, and it is understandable that those people who have access to finance want to take advantage of that and reap the rewards when the market begins to bounce.

“Responsibility is now the key to market success. The major lenders must be responsible rather than draconian with their lending; the property market must demonstrate that it is responsible by embracing calls for agents to be licensed; and the Government should admit responsibility for damaging schemes such as stamp duty, and scrap them accordingly.” 

Great start to the year!

Castlehill have enjoyed a great start to 2009! The market has picked up considerably, with both private buyers and investors becoming increasingley active. As long as property is realistically priced, buyers are ready and waiting with seemingley more mortgage options filtering through, creating opportunities, particulalrly for first time buyers.

Due to this positive market, Castlehill now urgently require more properties to sell to satisfy demand. If you are considering selling, please contact the office to arrange a market appraisal.

NAEA – SALES JUMP SHOWS CONFIDENCE IS RETURNING

Estate agents reported a rise in sales in February, with each agent selling an average of eight properties over the month.
 
It means that the number of sales has returned to the same level as 12 months ago.
 
The return of first time buyers to the market, noted in January, also held firm, dropping just one percent from 25 to 24 as a percentage of total sales.
 
In general, the market held strong in the first two months of the year, suggesting that it has plateaued.
 
Chris Brown, President of the National Association of Estate Agents, said: “This sales increase is a real boost for a beleaguered market.
 
“It shows that the demand identified by the NAEA is slowly but surely translating into sales.
 
“The housing market has had a devastating year, but now prices are lower than they have been for a long time and there are bargains to be had.
 
“These little signs all add up to a glimmer of light at the end of what has been a long and difficult tunnel.”

NAEA COMMENT ON RIGHTMOVE PRICE INDEX FIGURES

Following the publication of Rightmove’s housing price index, which showed a 1.2 per cent increase in asking prices, NAEA chief executive Peter Bolton King said:

“It is too early to say whether this increase in property prices, picked up by several organisations including the NAEA, will continue. The NAEA believes that it reflects that in certain areas the downturn is slowing and hopefully beginning to bottom out, as opposed to heralding the end of the housing slump.

“What is clear is that if confidence is returning to the market in any form, it is the job of the Government and the major lenders to try responsibly to sustain it. The NAEA believes that a complete suspension of stamp duty from the Government, and increased availability of mortgages from the banks, would achieve this.”

First Time Buyers Finally Find Hope in the Housing Market

The proportion of first time buyers (FTBs) looking to put a foot on the property ladder more than doubled in the first two weeks of 2009, according to the NAEA. 22.5 per cent of registered buyers were FTBs, up from 10 per cent in December and 14.5 per cent in January 2008. Peter Bolton-King, CEO of the NAEA, said: “This figure is highly significant in terms of demonstrating an increase in consumer confidence. The NAEA views FTBs as the bedrock of a healthy housing market. “During the boom years we saw the number of FTBs as a proportion of buyers rise as high as 37 per cent, and I believe that an average of 25 per cent is indicative of a healthy and confident market." He added: “While the figure of 22.5 per cent is definitely not a sign that the housing sector is out of the woods yet, it does suggest that those infamous green shoots of recovery may not be as far off as first thought.” Figures from a national survey of the NAEA’s 14,000 members also demonstrate that second time buyers are determined to try to bag a bargain. Agents reported a flurry of activity in the first two weeks in January, with an average of ten new sellers per agent. Agents made an average of four sales in the first two weeks of January – compared to a monthly average of six in November and December 2008. 55 per cent of those looking to buy in the first two weeks of January came from this market segment. Buy to let investors made up 22 per cent of the market – indicating bricks and mortar remains a sound investment, particularly with interest rates falling. Peter Bolton-King said: “These statistics are evidence that consumer confidence is slowly being restored but I must counter this by saying that unless lenders respond to consumer demand, then any green shoots will wither and die on the branch.”

NORWOOD HOMES LEADS THE WAY WITH 60% SOLD - OFF PLAN!

With the continual stream of negative press focused on the housing market, there is one small corner of Leeds which is currently rallying against the downturn. Norwood Homes Ltd of Harrogate have bucked the trend in the residential property market by selling three of the five houses at their development on Gordon Drive in Meanwood, Leeds before they finished building them.

The development, which is being funded by The Yorkshire Bank Plc, comprises two pairs of semi-detached houses and a detached property. One of the key attractions to the development is location; in the north Leeds suburbs complimented by excellent local facilities including supermarkets, Post Office and Banks. With each house Norwood Homes have avoided fitting such items as the kitchens, bathrooms and tiling in order to afford purchasers as much choice as possible. It is this personalised service that has greatly contributed to the success of the scheme so far.

Simon Ketteringham of Castlehill Estate Agents, selling agents for the project comments; “In this difficult market purchasers turn to traditional, well constructed houses that represent excellent value for money. The developers are very aware of the direction the market has taken and have priced these houses accordingly. With the quality of the finish at Gordon Drive, the results we have achieved and the strong continued interest has been refreshingly positive.”

Construction of the last two houses will be completed in February, although the developers will not finish the interiors so that a fully personalised service can be offered to interested parties. A regular level of viewings on the last two properties is being maintained and with part exchange now being considered the developers do not expect them to be available for long.

A GLIMMER OF HOPE FOR 2009!

Property sales at Castlehill have increased over the last few weeks, showing signs of confidence returning to the market place.

Whilst obtaining mortgage finance at affordable levels is still a challenge, indications are that some feel we’ve reached the bottom of the market and its time to start buying.

Paul Lehan, one of the Directors at Castlehill stated, “ So far it’s been a promising start to the new year. There are noticeably more buyers on the hunt for realistically priced property, this includes investors and importantly first time buyers, without which, the market cannot move forward. A number of properties that have been on the market through 2008 have now sold.”

“ Because of the recent adverse market conditions, there is actually a shortage of good quality accurately priced property available, so we would encourage anyone thinking of selling to get in touch. ”

If you are thinking of selling, please contact Castlehill, who will be only too pleased to arrange a mutually convenient time to inspect and provide details of their extensive knowledge, expertise and marketing packages.

NAEA WARNS: GOVERNMENT MISSES OPPORTUNITY TO SUSPEND HIPS

Following the Housing Minister’s announcement that a seller will have to have a Home Information Pack (HIP) before marketing their property, Chris Brown, President of the National Association of Estate agents said:- “Everyone is acutely aware the current housing market is exceptionally challenging and it is, therefore, a great pity that the Government has not grasped the opportunity to suspend HIPs and restore some confidence to the market.  As it is, the NAEA recommendation’s that the production of local searches is delayed until a purchaser is found has been ignored. This has resulted in an ongoing need for updating property search information, adding further cost to the consumer.On the basis that local searches were moved back in the process, we did agree that consideration should be given to the introduction of a Property Information Questionnaire. This was on the assumption that it was easy to produce and of use to the consumer. We look forward to ongoing consultation as to the final version of the Questionnaire to ensure that it is not just another added burden to the process. NAEA Members’ biggest concern will be the proposal to end the first day marketing proposal from 6^th April 2009. Consumers have made it abundantly clear to us that they believe that they should have the right to market their house from day one rather than having to wait until the HIP is prepared. The Government has suggested that certain information can be added at a later time of up to 28 days and we look forward to hearing the exact nature of this.Finally, NAEA welcomes  the OFT’s study into Home Buying and Selling and can only hope that this study will agree with the need to improve the process and protect consumers by ensuring all agents meet minimum competency standards.” 

NFOPP – PRE BUDGET REPORT: FIRST TIME BUYERS NEEDED MORE

Following the Pre Budget Report, Peter Bolton King, Chief Executive of the National Federation of Property Professionals, said:

“The Chancellor should have listened to the clamour of professional opinion and seized this opportunity to tackle stamp duty. A suspension would have given a real boost to first time buyers, who everyone recognises are key to market recovery.

“The National Federation of Property Professionals welcomes other measures announced – the lenders’ agreement not to initiate repossession proceedings until three months have passed, the extension of empty property relief and the £775m for regeneration and new housing.

“However more must be done - we now call on the Government to bring forward a number of important proposals from the Crosby report and to work closely with property professionals in any and all consultations between now and the budget.”

NAEA – CUT RATES FURTHER AND SUSPEND STAMP DUTY

More than half – 54 per cent – of estate agents surveyed said they did not have confidence in current Government policies and that more must be done, including a suspension of stamp duty. In addition, they called on the Bank of England to further cut interest rates.

The survey by the National Association of Estate Agents also revealed that consumers are responding to the recession by cutting their asking prices – a difficult decision that is already helping the market.
The vast majority of property professionals feel more must be done to boost the flagging housing market.

Chris Brown, President of the National Association of Estate Agents, said:

“Sellers are beginning to face up to the reality that their houses are not worth as much now as they were 12 months ago. They are ripping up last year’s price tags and beginning to come to terms with the new economic reality.

“That is a difficult thing to do - but the silver lining is that the market is now more transparent for buyers. Prices are becoming realistic, and we hope that this provides the boost needed to encourage those families who so desperately want to buy houses to get onto the market.

“However, as sellers have bravely accepted the truth of the situation and responded accordingly, so now must the Government and the major lenders.

“That is why we are calling for a further cut in interest rates next month, coupled with a clear commitment from the major lenders to pass any cut on to consumers and a suspension of Stamp Duty from Alistair Darling in Monday’s Pre Budget Report.

“If hardworking men and women across the country are making sacrifices, the least that they deserve is the banks and Government to stand shoulder to shoulder with them.”

The poll found that in October the average number of houses sold per estate agent rose from six to seven. The percentage of first time buyers also increased.

However, the market still faces considerable challenges. Estate agents reported a seven per cent fall in the number of house hunters on their books.

BUYERS NOW HAVE A CLEARER VIEW OF THE MARKET

Following the publication of the Rightmove Property Asking Prices Survey, Chris Brown, President of the National Association of Estate Agents, said:

“This is evidence of the difficult times that sellers face in today’s troubled economic climate. We have already called for measures to help – particularly for the Chancellor to stop treating stamp duty as an immoveable feast.

“However there is a silver lining within these figures, for buyers. As sellers face up to the new economic reality and adjust their prices accordingly – it means that buyers have a clearer picture of the housing market.

“They will spend less time looking around houses with last year’s price tags attached and can have more confidence in the market. As anyone in the profession will tell you, consumer confidence is the key to market recovery.”

CHANCELLOR MUST SUSPEND STAMP DUTY

The National Association of Estate Agents (NAEA) calls on the Government to use its Pre Budget Report to help thousands of young people currently priced out of the housing market.

Chris Wood, President-Elect of the NAEA, said:

“The Chancellor must realise that the housing market is not a piggy bank for his personal use – the gravy train is over and stamp duty cannot be used irresponsibly to boost his coffers.

“The bill for first time buyers has more than doubled in the last five years, making it impossible for many young people to start their own home. As it stands, stamp duty is a tax on aspiration – disappointing during an economic boom but unforgiveable in a faltering economy.

“We have made repeated calls for a full revision of stamp duty, and the stakes have never been higher. The Chancellor must take this opportunity to give the housing market the boost it needs.

“We now call on the Government to suspend stamp duty and hold a full review into making the system work better for the consumer. That is a discussion at which NAEA would be very happy to sit at the table.”

BANKS MUST PASS ON INTEREST RATES CUTS TO CONSUMERS

Following the Bank of England Monetary Policy Committee’s decision to cut interest rates by 1.5 per cent today, Melfyn Williams, Past President of NAEA, said:

“It is good news for the housing market that the Bank of England has reduced interest rates – the ball is now in the court of the banks.

“We are calling on all of the major lenders to commit to passing these savings onto the consumers.

“That will help hard working families who want to move home, and the thousands of young people looking to buy their first property.

“It should also help address the current rash of repossession orders. This interest rates reduction, coupled with a clear move from the lenders, would send a strong and positive signal to house-hunters and owners everywhere that may result in improved consumer confidence.”

INCREASING NUMBER OF FIRST TIME BUYERS IS A REAL POSITIVE FROM THE NAEA SURVEY

Members of the National Association of Estate Agents (NAEA) reported that the housing market in September still provided challenging times for its members but that the re-emergence of first time buyers may be the first sign that the recent Government intervention is beginning to work.

The research also showed that the number of sales per agent rose for the first time since January from an average of five sales in August to six in September.

Chris Brown, president of the NAEA, comments: “It is clear that certain factors are in motion within the property market, with a decision being made on stamp duty last month, but this is still not enough. As property prices continue to drop the Government needs to take action and make some drastic changes to restore confidence.

“It is evident from the results that despite some positive indicators, consumers are still cautious with many continuing to adopt a wait and see attitude and are only moving if it is necessary. Those who are not desperate to move are staying put in their homes and waiting for some stability to be restored across all sections of the market.

“First time buyers however, seem to be returning. This is most likely due to the Government’s decision on stamp duty last month. Whilst the announcement is not applicable to all regions across the UK, it might have had an affect on this market group. For those first time buyers who have the correct finances in place, now is the perfect time to buy a home. However, the NAEA continue to urge the Government to review the market holistically and offer this group a stamp duty holiday.“

First time buyers are re-emerging

September shows that the average percentage of first time buyers on agents books is 9.5%, which is an increase from 8.30% the month before, this could suggest that the stamp duty announcement last month has had an affect and restored some confidence.
Sales per agents increases

The number of sales achieved per agent increased in September to 6. This is positive news and again reiterates that buyers are still interested in purchasing a home, if they have the correct finances in place.
The time between instruction and sale increases

In September the average time between instruction and sale rose to 14.13 weeks from 8.64 in September 2007, which indicates that agents need to work so much harder to secure a sale.
The number of house hunters continues to increase

The average number of house hunters on agents books rose slightly again this month from 207 in August to 211 in September, suggesting that there are still buyers who are interested in buying and/or who need to move.
However, this month’s figure in comparison to September 2007 is considerably less and is no doubt a result of the current state of the market and the affects of the credit crunch. It is evident that the last few months have been tough and this has affected consumer confidence. Homebuyers are still keen but many are holding back to see what will happen to the market over the coming months.
Housing stock remains stable

The number of properties on agents books has remained the same this month at an average of 91. This might suggest that people are still keen to move if they can find the right buyer at the right price.
The percentage of agreed sales which have fallen through has increased this month to 11.72 compared to 10.22 the month before which is slightly concerning as it might mean that more buyers are lacking confidence in the market. This lack in confidence could be a result of the credit crunch, with worries of job uncertainly increasing, along with living costs rising.

National Association of Estate Agents Press Release

STEP IN THE RIGHT DIRECTION: NAEA RELIEVED AT TODAY’S INTEREST RATE DECISION - 08/10/08

The National Association of Estate Agents (NAEA), the residential sales arm of the National Federation of Property Professionals (NFOPP), is relieved at the Bank of England’s decision to reduce interest rates today.

Peter Bolton King, Chief Executive of the NAEA, comments: “The cut in interest rates today is definitely a step in the right direction in helping to rectify the current financial climate. At present, it seems that we are stuck in a vicious cycle that will not be broken unless the Government and external bodies join together in providing a cohesive solution to dissolving the economic and financial woes of the country. Thankfully today’s announcement and yesterday’s multi-billion rescue package will go a long way to easing the country’s current woes.

“This cut in interest rates should help consumer confidence at a time where individuals’ self-assurance has taken a heavy hit. We know that a positive housing market is essential for the overall economy. At present borrowing is not getting any easier and mortgage rates are getting tighter, causing the housing market to suffer. Reducing the rate will help send a clear signal to the market, encourage lenders to reduce their rates and allow the current mortgage shackles to be loosened giving the market and the thousands of house hunters out there the positive impetus they need.“

Another satisfied client!

Matt

Great news - securing a sale at a decent price in the current climate is a result !
Still a long way to go but hopefully will be plain saling from here - fingers crossed. Just wanted to say that Castlehill have done a great job so far, restored my faith in Estate Agents !

Regards,
Adam

Good news on Stamp Duty!

Director Greg Ketteringham said: ‘The Leeds market has in the past, proved more robust than other parts of the country, and numerous recent sales are proof of this. With the recent news from the government of a stamp duty holiday on properties up to £175,000 and with interest rates remaining fairly static, many buyers will be eyeing up the bargain prices in the coming weeks and months.

Unlike other agents, Castlehill concentrate on their core business of selling properties. The staff are dedicated purely to achieving a sale. So if you feel your current agent isn’t offering the right level of service or producing results, then why not try Castlehill and find out how different we are to ordinary agents. We don’t promise to work miracles, but you can be assured of accurate, honest advice focused on what is right for you from day one until the conclusion of the selling process.’

Castlehill have gone Green in more ways than one!

Castlehill have invested in a fleet of highly economical and environmentally friendly vehicles. These stylish and innovative cars will help the business to run more efficiently and will concentrate more resources into delivering the best possible customer service. Producing some of the lowest CO2 emissions and with a combined mpg of around 62, these BMW I Series cars help to minimise environmental impact.

Director Paul Lehan stated ‘These cars, which are an essential part of our business, will help us keep running costs to a minimum, allowing us to pass on savings to our clients, particularly valuable in these uncertain economic times. We can go about our business safe in the knowledge that we are maintaining our high levels of professional, honest and friendly service whilst minimising our impact on the environment.’