Newman Blog
Lending eases on Buy-to-Lets
Welcome economic news has been recently reported in the UK. Mortgage companies are beginning to reduce the deposit amounts on buy to let house purchases. Specialist lending divisions of certain high street banks will now lend up to 80 per cent of a property’s value. This compares with previous loan to value levels of 75 per cent during the credit crisis meaning that investors would have to had to put £25,000 down on a £100,000 purchase.
Brendan Petticrew, director of Newman Estate Agents says, “The housing market has suffered from the “disappearing investor” who left the market when prices began to decline and mortgage deposit amounts started to increase. Investors made up 31% of the 2006 buying market so you can imagine how it contributed to the housing downturn which began in the autumn of 2007 through to the beginning of 2009. The fact that deposit levels are starting to go down is a clear indication that the stringent mortgage lending criteria is starting to ease. It also signifies the confidence the money markets are starting to show in the future of UK housing”. The recent news on investor mortgages has been underpinned by the welcome return of the 95% mortgages re-available to private buyers.
Meet the Team
To kick off our meet the team blog posts we interview Becki Thomason our ballet dancing manager from Solihull…
Tell us a little about yourself?
My name is Becki and I live in Bourneville, Birmingham with my partner Tom. I grew up in Allesley Village in Coventry, studied at Bablake School and Sixth Form before leaving home to go to university and start my working career.
What is your role at Newman?
Branch Manager, Newman Estate Agents in Solihull.
How long have you been part of the Newman team?
3 Years.
Did you grow up wanting to be an estate agent?
I knew I wanted to do something to do with property, my Auntie is an interior designer and I always thought I would follow in her footsteps (I also liked watching Changing Rooms with Carol Smiley!) My parents moved several times when I was a child and they always encouraged me to get involved in the decision making process and I had a lot of practice showing people round our own home!
What is your favorite part of being an estate agent?
I love meeting new people every day and actually making a difference in their lives. When an estate agent does their job properly they can make a friend for life with their client and it’s at times like that when I am very proud to do what I do. Some people need more help when moving house which is what we're here to provide – enjoyable, reliable service and sometimes a bit of support.
How do you feel about the reputation estate agents have?
Times have changed and our work is much more customer focused than ever before. The best estate agents are those who are able to produce the highest levels of customer service and customer satisfaction by going the extra mile to help a client reach their goal in the moving process. If you don’t believe me, please pop in to any of our offices and meet our sales staff!
What's your best single bit of advice to anyone moving home?
If you are buying with a mortgage make sure you speak to the Mortgage Advice Bureau. They have such an ability to make sure you are getting the right options and are actually interested in the client sat before them. Friends and family whom I have referred to them have always been extremely happy and I have had several occasions where MAB advisors have actually saved sales from falling through because of their dedication, concern and ability.
What is your favourite colour for a front door?
Purple!
Have you ever found yourself in an unusual or comprising situation on a viewing or valuation?
Yes - another agent locked me in a house once. Hopefully by accident?!
Have you ever sold a property to or for someone famous?
No but I was on BBC's ‘To Buy or Not Buy’ last year when they were filming in Leamington Spa & that’s where I met my partner Tom – he's the camera man.
Tell us about your hobbies outside of work?
I like dancing and go to a ballet class every week and I’m also learning to play the drums!
What is your boss like?
Honestly?!
How many friends do you have on Facebook?
161 & 90 Followers on Twitter... www.twitter.com/becki_newman !
Newman the winner at the 2009 Estate Agency of the Year Awards
Newman Property Services received the ultimate industry accolade on Friday by being crowned as winner of 3 Golds and a Silver including Best Estate Agency Customer Service in UK, Best Training & Development in UK, Best Small Midlands Agent and Silver for Best Small Letting Agent in UK.
The 2009 Estate Agency of the Year Awards in association with The Sunday Times, was held at the Chelsea Football Club’s presentation suite at Stamford Bridge.
The event, now in its sixth year, was this year supported for the first time by The Sunday Times and is widely recognised as the most important in the industry calendar. The sold out event attracted agents representing over 4,000 branches nationwide and in a sign of improving times for the market, this year received a record number of award entries. The winners of the 28 categories at the award ceremony were presented with their awards by GMTV personality Penny Smith.
Following their initial submissions, each of these winners has been subjected to rigorous scrutiny by a panel of independent industry experts and the whole judging process is overseen by the Property Ombudsman Christopher Hamer.
Newmans were delighted to receive the awards. Managing Director, Jonathan Handford commenting: “We recognise the importance in creating the best possible experience for our clients and take action to make it happen.”
The judges’ report highlighted the particular qualities of Newman stating, “For sheer weight of initiative Newmans has harnessed the challenges of the recession to hammer the customer service issue with all guns blazing. Utilising a mix of tried and tested methods and new initiatives, their dedication to providing fantastic customer service is the result of excellent leadership and clear standards, they truly deserve the award.”
Once again the Awards were also supported by the Property Ombudsman and leading professional bodies the NAEA and ARLA.
The special achievement award for 2009 was presented to the Property Ombudsman Chairman, Bill McClintock in recognition of his exceptional and continuing contribution to the industry.
The chosen charity for the 2009 Awards was Help for Heroes and the event was addressed by the charity’s Mark Elliott who explained how money raised will go to help the charity’s Launchpad to Life and Combat Stress initiatives which help ex-service people who cannot return to active service and need help re-adjusting to civilian life due to physical or mental breakdowns or injury. Donations on the day raised £5,000 which will be donated to Help for Heroes via the Estate Agency Foundation, an umbrella charity through which agents’ donations go to existing charities that help combat the causes of homelessness.
Click here to visit the Estate Agency Events website and to view the judges report.
Local Estate Agent Fine & Country celebrates its second award of 2009
There's yet more positive news for the property profession this week as the results of the Daily Mail UK Property Awards 2009 have been revealed. The Rugby, Leamington and Solihull operation of Fine & Country were recognised as the Best Estate Agency in Warwickshire. Already jubilant after being crowned the best in the UK through an internal awards ceremony in the summer this year. Managing Director Jonathan Handford commented, "I am incredibly pleased for the team as they thoroughly deserve the recognition. The market got tougher and they simply raised the bar on service standards. They put everything into making the sale happen which is evident from the glowing acknowledgment from clients who have taken advantage of the exclusive service."
Later this year, top scoring winners from the Daily Mail UK Property Awards will compete against other winning companies from Asia Pacific, Europe & Africa, the Americas and Arabia to find the ultimate World's Best in each category. Organiser Stuart Shield comments, "We are really pleased with the growth in interest in these awards across all the different programmes and categories. I can't help but be impressed with the outstanding quality being shown by property professionals. Selecting the World's Best is going to be a hard task for the judges." Entries were judged by a panel of professionals whose collective knowledge of the property industry is second to none. This year's judges included Eric Pickles, chairman of the Conservative Party, Ben Wood, industry head property markets of Google UK; Peter Bolton King, group chief executive of the National Federation of Property Professionals; Imtiaz Farookhi, chief executive of the National House Building Council; Christopher Hall, president elect of FIABCI; Helen Shield, editor-in-chief of International Homes magazine and Gillian Farr, head of design of Laura Ashley Home.
Fine and Country have also confirmed that due their continued success in the sale of prestige homes they will be opening more offices in and around Warwickshire.
Mortgage Advice Bureau raise £5,300 for the Estate Agency Foundation
22/10/2009 14.15
Mortgage Advice Bureau raise £5,300 for the Estate Agency Foundation (EAF) at their annual conference
Staff and delegates at the Mortgage Advice Bureau’s “2010 & Beyond” Conference joined forces to raise over £5,000 in support of the Estate Agency Foundation, an industry-wide charity whose aim is to eliminate homelessness in the UK.
With over 400 delegates in attendance, Mortgage Advice Bureau not only highlighted the work and aims of EAF to their audience but also donated exhibition space to help raise the profile even further and fund-matched donations made by the delegates with all money raised to be allocated in its entirety to the Foundation’s ten beneficiary charities.
Peter Brodnicki, Chief Executive of Mortgage Advice Bureau, says, “We wanted to choose a charity for the conference that would have resonance for our delegates. The Estate Agency Foundation is a great example of cause-related fundraising in getting the estate agency, financial services and other affiliated industries behind the issues surrounding homelessness and joining up to raise money to help.
“I’m thrilled at the generosity of our delegates and would like to personally thank them all for making our fundraising such a success.”
When EAF was launched in 2007, no-one could have predicted the overwhelming response from the industry and affiliate suppliers in pledging their support to work together to eradicate the causes of homelessness.
Peter Knight, one of the Foundation’s trustees, comments, “All the trustees are delighted with the support from Mortgage Advice Bureau and the delegates at their conference. I’d like to thank Peter Brodnicki and the team at MAB for all their help. All the money raised will be donated directly to our chosen charities ensuring that 100% of the donations will directly benefit good causes.”
Each year, EAF nominates 10 charities to help across the UK and this year is thrilled to have donated funds to the following charities:
Shelter
Crisis
Emmaus
Cyrenians
The Salvation Army
YMCA
Barnardo’s
Centrepoint
St. Mungo’s
Broadway
For further details about the foundation please call the EAF team on 01372 370 895 or visit the EAF web site at www.estateagencyfoundation.org
The Dabbling Estate Agent- Nichola Barnett
22/10/2009 13.47
The Dabbling Estate Agent – as estate agents turn their attention to the Lettings market for survival, property expert Nichola Barnett of Newman Residential Letting discusses the REAL cost of using an amateur.
There’s no doubt that trading times have been challenging for all of Warwickshire’s property agents. Rugby’s leading lettings specialist; Newman Residential Lettings; who recently celebrated their landmark anniversary of 20 years of servicing Rugby warns, that as the residential sales market shows slow signs of recovery - more and more estate agents are frantically launching lettings divisions or buying franchises in a desperate attempt to avoid bankruptcy.
As the one area of the residential property market which continues to show signs of growth, lettings is being seen as something of a lifeline for desperate estate agents as they bid to keep their businesses afloat. But at what cost? Lettings Director, Nichola Barnett elaborates:
“Landlords and tenants should see beyond the glossy marketing campaigns and too good to be true offers, and seek professional accredited advice from an established letting agent. Landlord and tenants alike must take the time to research reviews on their prospective agent. Find out whether there are any independent customer review sites available on the Internet before committing themselves and their hard earned money to an agency offering on the surface the cheapest fees. It goes without saying that a quality lettings specialist will have far greater market knowledge and a much better understanding of a landlord’s or tenant’s needs than someone who has just moved into the sector, in a bid to make a quick and much-needed buck.”
There has been much controversy over the UK’s largest franchise operation, Martin & Co. where franchisees have misused tenants’ deposits and four owners have been stripped of their franchises. In one case in Chester the franchise owners stole over £200,000 in rent and deposits from unsuspecting landlord’s and tenants. While this sounds like the thing you hear of, but never expect to happen to you, Nichola advises things a bit closer to home are not shaping up to be much better.
Nichola says’ “I would advise any would be landlord or tenant, to walk down Regent Street and compare it to 2 years ago. Many of the big named estate and letting agents have had to close their doors to trading.” While the recession and redundancies have been widely debated and publicised, Nichola highlights the total lack of support and guidance available for the real losers in this economical recession - the landlords and tenants. The ones who are now facing the reality of having a legally binding contract, no deposit, no rent and nowhere to turn!
“Only last week, one Letting Agency closed it doors on the Monday morning and by the afternoon we had people walking into our office desperate for advice on their rents or deposits. We had one lovely couple who were meant to move into their dream house on Tuesday and realised they had nowhere to live. Luckily they were able to cancel the cheque they had paid the previous week and Newman Residential Lettings were able to locate the landlords who didn’t even know they had a prospective tenant moving in or that the agent had ceased trading. Thankfully for all involved, the move still took place without any further hitches. It is a real shame that not all stories end like this. Nichola goes on to say “Newman Property Services is recognised as an established community member and we wanted to offer any assistance we could to those that have been affected by these adverse trading conditions” Nichola continues, “we are proud to have set up a specialist service for any customer regardless of how they been affected by the recent closure of Greenwoods Ltd”
Nichola outlines that in a bid to offer the assistance that landlords and tenants need, Newman Residential Lettings have set up a free, confidential advice service for any landlord or tenant who may be wondering what to do or who to turn to. Our advice is impartial and to get in touch all you need to do is simply email nichola.b@newman.uk.com or call 01788 820028 option 2 and ask to speak to Nichola Barnett or Caroline Newman.
Many of the new ‘lettings agents’ – estate agents who are dabbling in the sector as property sales dry up – are aggressively marketing their services at very low introductory rates as they try to keep the wolf from the door, Nichola offers landlords and tenants the following advice when looking to appoint a lettings and property management company:
· Find out how long that company have been trading in your area
· Speak to several agents before making a decision
· Find out how much specialist knowledge an agent has, particularly in terms of the legal side of things
· Ask to speak with other landlords or tenants on their books to find out if they are satisfied with the service they receive.
· Make sure you read the small print before signing on the dotted line.
· If an agent is uncomfortable about you asking questions or tries to fob you off, walk out of the door.
· Confirm that the agent is member of a regulatory body such as National Approved Letting Scheme (NALS) or The Property Ombudsman (TPO). Newman Residential Lettings are proud members of both
· Ensure that there will be clear agreement or contract in place when considering aspects such as repairs, deposits, inventories etc.
· Ensure the agency has Professional Indemnity insurance – to protect your MONEY, ask to see proof of it.
Nichola concludes “With so many new kids coming onto the block at the moment it pays to do your homework and make sure you work only with the very best Letting Agent in your area” She continued: “After all, if history has taught us anything, it isn’t necessarily the cheapest company which offers the best long term value for money; it’s the company that offers the best value for services received. Renowned American oil well fire-fighter Red Adair, is famous for saying:
"If you think it's expensive to hire a professional to do the job, wait until you hire an amateur." Quoted while he was discussing his involvement in assisting the American Government when extinguishing oil well fires in Kuwait in the early 1990’s during the Gulf war.
Nichola summarises; for the tenant, there are few things as important as having a safe, secure and comfortable home to live in. For the landlord, especially the new breed of landlords who will be novices themselves, working with a specialist company will ensure that they don’t get their fingers burnt.”
For further information, please do not hesitate to contact me on the following details:
Nichola.b@newman.uk.com
House price net balance turns positive
03/10/2009 15.32
The RICS house price net balance turned positive for the first time in two years says the latest RICS UK housing market survey.
The seasonally adjusted net balance of surveyors reporting rising rather than falling prices over the last three months turned positive in August with a reading of 11% (compared to -6% in July). That was the highest net balance since May 2007 and is consistent with the picture painted by other house price indices.
The latest survey provides further evidence that activity in the housing market continues to improve, although the pace of improvement may be slowing. The net balance of surveyors reporting an increase rather than a decrease in new buyer enquiries edged down from a recent high of 66 in June to 49 in August. Similarly, the agreed sales net balance was 34 in August down from 45 in July. However, the actual number of sales per surveyor over the last three months averaged at 17, the highest reading since May 2008.
There are further signs that the change in news flow on the housing market may be encouraging vendors back into the marketplace. A net balance of 12% of surveyors reported that new instructions had increased in August, compared to a reading of 4% in July.
Property Drums Lindsay McAloon speaks to Caroline Newman
03/10/2009 15.32
"Having worked in the lettings industry for the last 22 years I have
seen many changes over this period. And essentially they all relate back
to two elements - legislation and market conditions. Since the housing
market hit rock bottom (pretty much over night) we have seen many estate
agents put on their 'lettings cap' and become 'letting agents' over
night - understandably as a means to financially survive as residential
and commercial sales dried up. And whilst competition is never a bad
thing however typically these agents are charging incredibly low
commission rates to attract custom but the lack of experience they can
demonstrate is in some cases damaging the sectors reputation and failing
to offer peace of mind to the consumer."
"At Newman's we took the radical decision to increase our fees. To us,
experience and knowledge and being an active members of an independent
industry organisation such as NALS provides that peace of mind and
guaranteed credibility. When NALS took the decision to licence all its
members - it took that credibility to the next level. Agents are
officially authorised to operate and it is easily recognisable to
everyone in the industry and most importantly the consumer. To the
consumer the NALS stamp says we are 'tried, tested and approved'. The
world of lettings can be a minefield to a landlord who lets his property
through an agent who has no industry organisation to back up their
reputation and protect them. And, the same also applies to the tenant
who generally has little awareness of what they should be looking for."
Thinking of Buy to Let? Now could be a great time.
07/10/2009 16.21
Twenty years ago, two maths teachers bought a small terrace house in Kent to let. The arrangement worked so well that they bought another. Then another. Flash-forward to today and Judith and Fergus Wilson own 910 houses around the county. They even topped the Beckhams in the 2007 Sunday Times Husband And Wives Rich List and are rumoured to be in line for a £90million windfall when they sell their property portfolio and retire this month. It is, of course, the ultimate rags-to-riches story. Sound too good to be true? Perhaps.
Catch it if you can: Many investors think the time has come to move back into rentable property. But their story certainly is not the stuff of fairytales. Because Judith and Fergus Wilson have no secret weapons - just a first-class knowledge of their local area and a shrewd eye on the property market. What's more, now might just be the right time for anyone to start up a buy-to-let portfolio if estate agents are to be believed. Buy-to-let landlords are cottoning on as one in ten mortgage enquiries now comes from a potential landlord. The first incentive is the steadying housing market. House prices have risen 7.8 per cent since March, showing we've passed the worst effects of the recession. Even so, prices are still more than 13 per cent lower than their peak in October 2007, according to Nationwide.
'It's the perfect climate to pick up a real bargain,' says Nichola Barnett, Lettings Director at Newman Property Services. 'Sales are only going to go up and demand for rental properties is huge. If I had a pot of money, I'd be buying left, right and centre.'Even better for would-be landlords is the ratio of empty properties to tenants. Demand for rental properties is by far outstripping supply. But like all booms, there is a downside. For hopeful buy-to-let landlords, the biggest difficulty is securing a mortgage, particularly as the number of buy-to-let mortgages available has shrunk by more than two-thirds in the past year.
So the market might be ideal for new buy-to-let landlords, but the logistics of securing that mortgage are not. 'If you have done the maths and buy-to-let is the right project for you, the first thing you need to do is come and speak to one of our property advisors, drop by our office its opposite the train station; 8-9 Station Square, CV1 2GT. Our lettings specialist will guide you through everything, offer impartial advice on whether you want to buy a flat or a house, what transport links they need, even the decor plays a part in attracting the right kind of tenant. Newman Residential Lettings offer this kind of buy to let assistance free of charge, just give us a call and ask to speak to Nichola 02476 500 005 / Nichola.b@newman.uk.com Remember our advice is going to be un-bias and purely from a lettings perspective so before you commit to buying anything, come and speak to the letting specialists.
If you have any questions or comments on the above, I would love to hear them, Nichola.b@newman.uk.com
Newman group success at Mortgage Advice Bureau National Awards
09/10/2009 14.20
Pride Park Derby County Football Club was the setting for the Mortgage Advice Bureau annual conference and awards ceremony. Several industry leaders took to the stage including representatives from the Abbey National, Nationwide, Royal Bank of Scotland and Lloyds.
The day is orchestrated to inform on current market trends and also create a picture of what is expected for the future. It also provides an opportunity to celebrate success from the previous years and recognise outstanding performance. Matt Clarke won top advisor in the UK for recommendations. Newman Property Services Leamington Spa branch won the second place for Estate Agency introducer.
Newman Property Services Managing Director Jonathan Handford said "it was a great day for us in terms of the awards". It demonstrates our commitment to customer care that we have been recognised with an award determined upon by recommendations".
Jonathan also added "we expect to see some changes in the mortgage market over the coming 12 months, with interest rates expected to climb in the early part of next year then now could be the perfect time to look at your options".
Tony Sweet Newman Surveyors Director. RICS reporting price increases is up AGAIN
15/10/2009 16.01
The RICS are reporting that the headline RICS house price balance recorded the highest figure since the onset of the credit crunch. The net balance of chartered surveyors reporting rises rather than falls in house prices reached a positive reading of 21.5% in September, up from 9.9% in August, the highest result since May 2007 when the net balance was 25%.
This further proves that consumer demand outstrips the supply of property coming onto the market.
The expectations of the next three months also remains good, with the net balance of surveyors expecting price increases rather than a decrease being up to 25% from 18% in August.
The strongest regions for both price increases as well as expectations were London and the South East. In addition, for the first time since 2007 all regions showed expectations of forthcoming price increases leading up to 2010.
The table below show the percentage of price changes reported by surveyors in some selected regions and shows how the trend is moving from price decreases to a higher percentage of surveyors reporting increases in property prices.
