Press Releases 2009
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
SUSPEND STAMP DUTY
Property Todays Matt Phillips talks to Jonathan Handford, Managing Director of Newman Property Services and Fine & Country
Why would a temporary suspension of stamp duty help the economy?
The buying and selling of property creates demand in a huge number of related services - solicitors, surveyors, removals firms, builders, carpet fitters; the list goes on almost limitlessly. The point is, when a sale completes everyone from the tax man down to the paint supplier gets a piece of the action. The glitch in this system at present, as I see it, is that Stamp Duty thresholds are based upon a market that no longer exists. The government had previously generated somewhere in the region of £3 billion pounds each year in stamp duty tax. They are understandably keen to protect this income but the cost of moving to the consumer is now proportionately higher, aggravated by the worsening economy.
How will the government replace the lost revenue
In 2007 national property transactions were 1.3 million. Last year that figure was 600,000 and projections for this year are even less. This dramatic fall, not even taking into account decreased prices, substantially diminishes the tax collected by the Government. And these revenue losses are by no means the whole story. The more compelling losses are those that have spread right across the board. The recent 2.5% V.A.T. reduction has made little difference to the builders, plumbers, electricians, et cetera, whose business has dramatically slowed down through sheer lack of
demand. There is, surely, more to be made in V.A.T., even at 15%, through the associated costs of all the goods and services used during moving and refurbishment, than from Stamp Duty on far fewer sales.
What is the solution?
If this tax was suspended until better times, let’s say 2012, then it should re-energise the housing market - which in turn would have a positive knock-on effect on the economy as a whole. With increasing unemployment, the Government should be encouraging the free movement of labour, Stamp Duty acts as a disincentive to people who might otherwise have the confidence to move. The demands of an active and healthy housing market have a positive effect on all the related and connected sectors. The momentum the suspension of Stamp Duty would produce could not only
enliven and invigorate the property market, but significantly assist the rest of our economy during these difficult times. We have to remember that one persons expenditure is someone else's income and property is the catalyst for a lot of spending.
If you agree with me please sign the petition at http://petitions.number10.gov.uk/suspendstampduty. If you have any other questions you can contact Jonathan Handford on 01926 431431 or 07813 787474
Warwickshire Living talks to Newman Property Services Jonathan Handford
Local Estate Agent Triumphs at National Award Ceremony
Local estate agents Newman Property Services have won the national award for excellent performance with the Fine & Country brand, at an award ceremony held in London.
The prestigious event was held in the lavish setting of the Millennium Hotel in Mayfair, where over 100 delegates had gathered for the company’s annual conference.
Newmans had also won the regional award for representing Fine & Country in the Midlands, earlier in the evening.
Receiving the accolade, Jonathan Handford said: “We’re thrilled to accept this award for our work in the area over the past twelve months. At Fine & Country we deal exclusively with the region’s premier property - and despite the most challenging market in living memory, the support of the brand has helped us achieve an extraordinary level of sales. The results are testament to the hard work and dedication of the whole team.”
The national conference also included a charity auction which raised over £10,000 for The Simon Lewis Foundation, formed in memory of one of Fine & Country’s most popular agents who died from cancer last year, and which is in turn dedicated to supporting the Willow Foundation charity who provide special days out for seriously ill young adults.
Chief Operating Officer for Fine & Country Mike Bidwell commented: “Newmans have been a cornerstone of our operation in the Midlands. Together with Fine & Country’s offices all over the UK - as well as those in Europe, South Africa, the United Arab Emirates and shortly the USA - they have helped us establish the company as a truly global brand.”
