Christies Network Auctions – end 2016 on a high

Leading UK Auction house Christies Network Auctions enjoyed another excellent result at their December auctions in Central London and Birmingham with an 86% sales success and a total of £4.2m raised under auctioneers Guy Charrison and

Richard Worrall’s gavels.

Christies Network Auctions have sold an impressive 85% of lots offered in 2016 and raised over £42,000,000, an increase of 15.5% from 2015.

The December auctions saw investors and owner occupiers bidding in the room and by telephone and proxy with some excellent prices being achieved for sellers.

A three bedroom semi-detached house in Slough achieved a price of £400,000, some £75,000 over the reserve figure and several ground rent investment lots offered all successfully sold.

A speculative piece of land with a disclosed reserve of just £1 made £7,500 and the top price achieved was £576,000 paid for an attractive semi-detached house in Bricket Wood near St Albans.

Christies Network Auctions’ Jeremy Richardson was delighted with the outcome and is looking forward to even more success in 2017. He said: “Christies Network Auctions will hold 11 national auctions in London and Birmingham in 2017, if you are thinking of disposing of a property, please contact us to discuss the best options open to you."

Christies Network Auctions can be contacted at www.christiesworld.com or 020 8643 7777

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Christies Network Auctions – Last chance to sell before Christmas

The next auction being held by Christies Network Auctions is being held at the Grosvenor House Hotel on London’s Park Lane on 8th December at 2pm.

Auctions are a superb way of selling a wide variety of property as the transaction is secured as soon as the auctioneer’s gavel falls. The December auction is the last Christies Network Auctions auction of 2016 and will, as usual be streamed live from the room at www.networkauctions.co.uk

There is still time to include lots for sale and have them included in the December catalogue.

Jeremy Richardson of Christies Network Auctions said: “Once again our partnership with Network Auctions is enabling us to provide clients with an alternative route to selling property of all types and across all price ranges. We welcome the opportunity to discuss how selling by auction or using our unique and highly successful online Network E service could benefit your circumstances.”

“The combination of local knowledge and expertise and national exposure is proving to be a winning formula and we expect another successful sale.”

The auction on 8th December will once again have a live Twitter feed giving updates and the results as they happen. Christies Network Auctions can be followed on Twitter as @NetworkAuctions.

With bidding in the room, via telephone, proxy and the internet, no stone is left unturned in ensuring that buyers can bid and purchase. 

Guy Charrison, auctioneer for Christies Network Auctions added: “2016 has seen auction numbers significantly increase on previous years and we have sold over £30 million of property so far this year. This clearly proves that auctions provide an ideal way of disposing of a wide variety of property, particularly in situations where transparency and speed of sale are important.”

“In addition, our Network E service is proving popular with those who want the certainty and transparency benefits of an auction but the slightly reduced pace of a private treaty sale.”

Christies Network Auctions are already inviting lots for the next auction which will be held in London on March 8th and Jeremy Richardson of Christies Network Auctions will be pleased to advise on what is involved. Jeremy Richardson can be contacted on 020 8643 7777 or by email on sales@christiesworld.com or at the Christies Network Auctions website at www.christiesworld.com

Please contact us on 020 8643 7777 or email at info@christiesworld.com

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The Art Of The Deal

Nick Churton of our London Mayfair Global Network offers some good advice about selling your home in this or any market.

In 1987 a book called The Art of the Deal was published. Part-credited to one Donald J Trump it is estimated to have sold over one million copies and it held the number one spot on the New York Times Best Seller List for 13 weeks.

What made it so popular? Simply that people were fascinated to learn how to make better business deals. Selling a home is business. So here are seven of my key thoughts on the art of the property deal.

People are only human
Everyone wants as much as they can get for their property. But let’s face it all potential buyers want to pay as little as possible. Sometimes buyers and sellers don’t play nicely together. Property transactions often expose human nature in the raw. For both parties to get what they want ideally they should compromise a little. Each should be nice but firm.

Reasonable wins
The key to a successful property deal is not to make unreasonable demands with your price or with an offer or counter-offer. Being reasonable always trumps being unreasonable.

Don’t haggle, negotiate
Ill-advised buyers and sellers haggle. Informed buyers and sellers negotiate. Negotiation isn’t just about price. It can involve fixtures and fittings, furniture and white goods. It might involve access to carry out remedial work before completion, or even renting back the property for a while after completion if necessary. It is also about timing. When two or more parties are involved in a chain and each has their own idea about when they want to move, discussing exchange and completion dates plays a crucial part of any negotiation.

Some principles aren’t worth standing on
Some principles have little place in negotiation. Principle is all very noble but sometimes it is best to focus on the desired outcome rather than the cut and thrust of getting there. The aim is to move. A sale is only part of the move. The end game should always be the focus. If one side decides to be mean and petty that does not mean the other side should be too. Bad behaviour is annoying but standing on principle is often counter-productive.

Move forward not back
Having made the deal it is usually best to hang on to it. Losing a deal can be costly in money and time. Also no one likes it when another side reneges on an agreement. It breeds a great deal of ill feeling – sometimes enough to blow a deal. At the very least it can throw up other difficulties – often with several other parties if there is a chain of inter-related sales.

Expect the unexpected
Be prepared for the unexpected. Sometimes a genuine legal, financial or survey issue shows up from nowhere and the deal may have to be adjusted. This may be unavoidable. Again it is best to accept that stuff happens and that reasonable behaviour on all sides can often resolve these irritating difficulties.

A good estate agent is your new best friend
Many people think that estate agents simply put properties on the internet and conduct viewings. But that is only the start. Their real work is in the art of the deal - making sure clients get what they want, when they need it. Estate agents do this in the crucible of an intricate personal, legal, financial and sometimes emotionally charged theatre of life. A good estate agent is a highly experienced expert in this. It really is better to have a proper estate agent on your side from the start instead of wishing you had one somewhere down the line when it may be too late.

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More Network E success for Christies Network Auctions

Following hot on the heels of the widely reported Network E sales success last month when a house achieved a sale at a stunning £465,000 against a guide price of £350,000, another fabulous result has been achieved, demonstrating the success of this unique method of sale.

The property was placed on the market with a guide price of £830,000. By the time the online Network E auction finished, a price of £1,035,000 had been achieved.

Richard Killoughery of Christies Network Auctions said: “The property was being handled by Executors and they were recommended to use Network E as the method of sale as it was felt it combined the best aspects of a private treaty sale with the transparency, certainty and speed of an auction.

Three open house viewing sessions were held and sixty interested parties were shown around.

Bidding was fierce with a total of 64 bids culminating in an excellent price of £1,035,000 being achieved.

Crucially a non-refundable deposit was immediately paid and exchange set for twenty-eight days.

Selling and buying can be a stressful time but the speed and transparency of the Network E process works superbly for seller and buyer alike”

Network E is a unique service provided by NAVA auction house of the year Network Auctions and is exclusively available in the local area via Christies Network Auctions. Unlike traditional auctions, the process is suitable for sellers and buyers who would normally look to sell and buy via traditional methods.

To find out more, Richard Killoughery at Christies Network Auctions can be contacted via their website at www.christiesworld.com/auctions

Christies Network Auctions: Bucking the Brexit trend

NAVA Auction House of the year, Christies Network Auctions, has demonstrated that any rumours of the death of the UK property market post Brexit, have proven to be unfounded, with superb results posted at our two day July sale.

At our London sale on 7th July a total of £4.2 million was raised with 80% of the catalogue successfully selling. At the Birmingham sale held in conjunction with Pennycuick Collins on 13th July the outcome was even better with a sales success rate of 86% and a total of £1.55m being raised.

The two day combined sale saw thirty seven of forty five lots sell, an impressive 83% and a total sales value of £5.75 million achieved.

Auctioneer, Guy Charrison was delighted with the results admitting that he was understandably a little nervous as to whether buyers would commit to purchases post the Brexit announcement.

He said: “Despite the current political turmoil in the country and the potential uncertainty of the Brexit vote, good old bricks and mortar has, once again, proven to be a safe haven and buyers have taken a positive view and committed to purchasing.

The Christies Network Auctions approach gives us the edge over our competitors as we combine local knowledge and marketing with the national and international exposure of big city auctions and access to large numbers of buyers and investors.”

Christies Network Auctions next sale will take place in London on 14th September with another two day sale in London and Birmingham in October.

Lots are now being taken for inclusion in the catalogues and anyone thinking of selling property is invited to contact Jeremy Richardson on 020 8643 7777 or email at info@christiesworld.com

More information can be found at www.christiesworld.com/auctions.

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A guide to downsizing

Are you thinking about packing up your family home and finding somewhere smaller to live? Here, the NAEA offers advice to make the process a little easier.

Planning is key – Packing your home into boxes can be a real chore, particularly when you are moving to a smaller property, but planning well in advance can make it easier. Think about where you will unpack your belongings and in which room each box should be placed. If you haven’t got it all sorted ahead of the move then just make sure you label all your boxes clearly.

Be realistic about what you can take – Downsizing is your chance to have a spring clean and focus on exactly what you want in your new home, as well as what you don’t. You may have furniture which is too big for your new home. Think ahead and make sure you have taken proper measurements of your new property.

Maximise space – Your new home might have less elbow room, but think carefully about the layout and look at ways you can get the most out of the space available. Often if a house has been occupied for some time, the owners may have used a bedroom for storage or a study.

Set up your utilities – For any move, check with the estate agent and get the details of the previous utility providers so you can call them to set up new accounts. Also, make sure that your phone and broadband services are ordered prior to moving in because these often take a number of weeks to become active.

Ask a professional – Often the easiest way of getting the most up-to-date information that you need about moving home is to consult a respected, local professional. Agents who are members of the NAEA, which means they are experienced, qualified and licensed, can be found here. A professional agent can be invaluable during the moving process.

Source: OntheMarket.com

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Top tips to prepare for an open house

In an age of online house hunting, don’t be misled into thinking buyers won’t take up an open house day opportunity. From looking online, to viewing a property in person and making an offer, open house days are a modern approach to house selling which aims to make the process easier and more accessible for buyers.

It’s also worth remembering that hosting an open house day can encourage new buyers and sellers to register and prompt many to view properties they might have otherwise ignored.

Do... prepare your house in advance

Declutter. Put items in storage, clean and add personal touches such as fresh flowers and scented candles. Keep décor neutral and the lights on to ensure there are no awkward or dark corners.

Do... groom your garden

The front garden is often the first thing a potential viewer will see and one of the most underrated selling tools. Mow the lawn, keep plants looking fresh and colourful and put out any garden furniture for an added lifestyle touch in the back garden.

Do... hide your pets on the day

Respect the fact that many people might not be dog or cat lovers like you. What’s more, you don’t want to put off any potential buyers with a bad smell.

Don't... get too involved with viewers

You are there to help potential buyers navigate their way around the house, offer tea and coffee and answer any questions they might have. Don’t tell them your life story such as how the cat died and where it’s now buried!

Don't... get carried away with demand

Remember buyers won’t say what they are truly thinking if the seller is present on the day. Most viewers will be polite and pleasant and that could encourage a presuming seller to raise the price. Beware of falling into this trap! All your hard work could be undone if a buyer is not prepared to pay what you’re asking.

Don't... prevent access from certain parts of the home

This will only set alarm bells ringing. If it’s clutter you’re hiding, rent out storage space. It’s unrealistic to expect buyers to commit to purchasing your home when they can’t see all of it.

Source: OntheMarket.com

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Will Brexit affect UK house prices and interest rates?

It is the question many of us are asking, some of us quite anxiously. How will the vote for Brexit affect the UK property market and, in particular, house prices and interest rates?
In the immediate aftermath of the referendum result, shares fell sharply, only to rally within days. Then this week, the pound dropped again, reaching a 31 year low against the dollar. At this stage, it is impossible to foresee the long-term impact of the Brexit vote, but it could be that the effects on the general economy are likely to be gradual rather than seismic.

Depending on which way you look at the situation, perhaps there will be a welcome change for some, including first time buyers trying to get a foothold on the housing ladder. But worries about the property markets have been reflected in the share prices of UK housebuilders, with some stocks down as much as 37 per cent. Estate agents and publicly listed property portals have also seen a downturn in their share price since the referendum.

The first thing to factor in is a possible cut in interest rates. On 30 June, a week after the shock referendum result, Mark Carney, the Governor of the Bank of England, signalled that such a cut might be necessary to tackle the economic fallout from Brexit. For homeowners who earlier in the year had been bracing themselves for a rise in interest rates, it is both good news and bad news. Good news because such a cut, if implemented, would reduce their monthly mortgage payments even further. Bad news because when the Bank of England feels the need to reduce interest rates, it is usually the harbinger of a downturn in the general economy.

Last week, Mr Carney’s message to families was clear. “We are advising people to be prudent,” he said. “Certainly, if you are taking out a mortgage, at some point over the life of that mortgage, times will be difficult. You want to make sure as a family or as an individual you can service that mortgage when times are difficult. You don’t want to lose your house or flat,” he said.

As for house prices, it would be a brave expert to make long-term predictions but there is a near-universal expectation that they are likely to fall in the period before Christmas.

Dr Howard Archer, Chief UK Economist at research group IHS Global Insight, said he expected house prices to fall by five per cent in the second half of this year and between five per cent and seven per cent next year.

“Housing market activity and prices now look to be at very serious risk of an extended, marked downturn,” he said. But he added that a number of factors “should help to limit the downside for house prices”, including a likely cut in interest rates and the shortage of properties on the market.

In the immediate aftermath of the referendum result, some sellers in central London dropped their asking prices by 30 per cent or more. A flat in Whitechapel which had been listed at £1.1million in January was re-listed at £720,000. A flat in Notting Hill which had been listed at £1.6million in February was slashed to £1.35 million. As the turbulence in the Stock Market eased, so did the panic in the property market.

But with a prolonged period of uncertainty, sellers keen to shift their properties in 2016 seem resigned to the fact they will have to settle for less than a year ago. “Sellers have generally taken a pragmatic approach to pricing without having to slash their expectations,” says Lucian Cook, Head of UK Residential Research at Savills.

Savills predict a ‘low transaction market’ this summer, with buyers and sellers alike sitting on their hands until there is greater clarity about the exact form Brexit will take. Experts who predicted that property prices would rise by around five per cent are now singing a different tune. KPMG is predicting a fall of five per cent in UK house prices over the next 12 months. The National Association of Estate Agents, more bullishly, is expecting prices to inch upwards, but to be £1,000 lower, on average, by the end of the year than if Britain had voted to remain.

Paul Smith, CEO of Spicerhaart, remains optimistic and said: “House prices may go up and down as they always have, but demand pressures will sustain prices over the long-term. We’re on course to see the greatest investment since the war, and residential property continues to pay off for home owners.

“Britain should be confident. We are an economic powerhouse and we will continue to be a magnet for international investment.”

The Association of Residential Letting Agents also said that demand would fall in the rental market – but prices would stay the same: “Almost half of agents expect the number of prospective tenants per property to fall as international demand weakens. Just over a quarter of agents expect the Brexit result will cause upward pressure on rental costs.”

But if that is the downside of Brexit, there are positives too. For overseas investors, the fall in the value of the pound makes property in central London significantly more attractive than a year ago. Demand will continue to outstrip supply and, with government targets for new homes likely to be knocked off course by Brexit, property assets will retain their intrinsic value. And first time buyers, for obvious reasons, will not be too upset if house prices do fall in the medium term.

With a fresh twist almost daily in the Westminster soap opera, it would be foolish to predict anything with any confidence. But early jitters in the market do seem to have settled and the advantages of buying and owning property in one of the most successful economies in the world are as obvious as ever.

Source: OntheMarket.com

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Brexit Special

Nick Churton of our London Mayfair Global Network looks at how the referendum result could affect the UK property market.

Well now we know. Britain is leaving the European Union. All the scaremongering is over and we will learn in the coming years which of the two sides was right after all.

But what will this decision mean for the property market in the UK? In the short term perhaps not so much as one might imagine. Those people who put off a house move until after the referendum will in time trickle into the market, driven in the most part by need. But it might not actually be the referendum which will turn out to have had the greatest effect on the property market this year. The real game changer might be tax - the extra stamp duty on second homes and buy-to-let properties, and the new tax burden for foreign buyers.

These Treasury measures are profound and have the potential to shift opinion and practice - if they haven't already done so. It is hard to pinpoint exactly when the UK property market became so driven by overseas investors - many of whom may never set foot in the properties they own - and domestic buy-to-let investors benefiting from low interest rates and rising property values.
But now however there appears to be a slight move away from an investment led property market to one more driven by buyers needing affordable homes for themselves and their families.

We seem to be in a particular period of opinion change in the property market right now. Tastes are different. The growing numbers of retirees want youthful urban living with all the convenience it can bring. New building materials bring cost savings and help the environment so there is an increasing demand for homes made from these materials and fitted with labour-saving technology. Younger buyers are in general more reluctant to renovate houses than their parents were at the same age, wanting instead ready-to-move-into properties which give them more time to pursue their careers and leisure interests.

Of course our economy is the prime driver of the property market. But all things being equal we may come to see that the European question was not quite so influential on housing in the UK as buyers' desire to buy, builders' desire to build, lenders' desire to lend and - ultimately - politicians', planners' and the public's desire to make available suitable land. In or out of the EU those desires have always had less to do with Brussels and more to do with us.

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8 Home Improvements To Add Value To Your Property

Whether you are selling now or maintaining your home to sell in the future, there are many small home improvements you can address to keep your home in best shape for when the time comes to sell-up, advises the National Association of Estate Agents (NAEA).

“Updating and improving your home can seem a daunting task for many, and while a new kitchen or fully fitted bathroom can add considerable value to a home, a lot of home owners simply don’t have a lump sum to spend – nor feel that it’s necessary," says Martyn Baum, president.

"In the absence of any pressing structural repairs, there’s a huge variety of more manageable home improvements that home owners can carry out to increase the value of their home,” he adds.

NAEA’s top 8 home improvement tips to increase the value of your home are as follows:

1. The illusion of space

Spend some time reorganising your rooms to make the best possible use of the space. This can involve reorganising the furniture or building shelves to help tidy away clutter. Also be ruthless and do throw clutter away.

2. Be your own gardener

You don’t need to employ a gardener or landscaper to spruce up your garden. Simply mowing the lawn, tidying up the patio or planting some flowers brightens up your garden, and this is always a draw for buyers.

3. Be energy efficient

Fitting your home with energy efficient appliances can add value to your home by promising to knock the costs of bills. With a huge variety of new products on the market for this, it’s increasingly becoming a key feature for new homes

4. Deep clean

Fixtures and fittings that look tired and in need of replacing can be brought to life again with a deep clean. Even the tidiest of home owners face inevitable wear and tear over the years so it is important to address this.

5. Letting in the light

Fitting windows in dark rooms is an easy and cost-efficient way to expand the space in your home without spending a fortune.

6. Small kitchen improvements

Fully refurbishing your kitchen is pricey and can take time. But small things can make a big difference. Pick out the most notable places to improve your kitchen, whether it is a new floor, cooker or cupboard doors, and replace these, rather than the full unit.

7. Take on your own handy-work

There is a huge amount of DIY advice online or in guide-books. Don’t be afraid to pick up the tools yourself to fix small damages around the house – but be careful, anything too heavy or difficult should require a professional.

8. Lick of paint

Painting the walls in your home really does give a fresh and clean feeling and will reduce the appearance of wear and tear. A tired home gives the impression that a new buyer is likely to spend a lot of their own time and money bringing it up to scratch so may encourage them to lower their offer.

Source: NAEA, May 2016

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Buying or selling a property? How do you choose the right solicitor?

How do you go about picking the right solicitor to carry out the “conveyancing” for your property transaction? Here is our mini-guide to help ensure that the process runs as smoothly as possible.

* Phone a friend

Get recommendations from people you know. People are often very happy to suggest a good solicitor and just as ready to steer you away from one who caused them problems.

* Find a solicitor who is CQS-accredited

What’s CQS? It’s the Law Society’s Conveyancing Quality Scheme, a register of solicitors who are authorised and regulated by the Solicitors Regulation Authority when it comes to conveyancing (i.e. the buying and selling of houses). Read up on it at the Law Society website, www.lawsociety.org.uk, 020 7320 5650.

* Is there a full list of solicitors?

Yes. Visit the Law Society’s free-to-use Find a Solicitor search facility, at www.lawsociety.org.uk/for-the-public/using-a-solicitor/find-a-solicitor. However, at the last count, there were 145,781 names on the official Law Society database of legal professionals.

* Shop locally

Yes, you are free to choose a solicitor who is in the Outer Hebrides but it will be easier to choose a nearby firm, so you can drop into their offices and deal face-to-face if the need arises. Solicitors in the area will also have a good grasp on local issues and potential problems. Your estate agent might be able to point you in the right direction (if they recommend only one, you can always ask if they earn commission for referrals). This is an added benefit of using a traditional, locally based estate agency firm over an internet-only agent. The main thing is to check in advance that the firm you choose is experienced in handling conveyancing and has a clearly-identifiable conveyancer.

* Avoid relatives

Even if your cousin is a solicitor and giving you “mates’ rates,” don’t give in to family pressure. Conveyancing is not a social engagement, it’s a business. And when you’re in a contract race, you need a solicitor who is on the ball and not doing your conveyancing in between more lucrative jobs.

* Ask how much it will cost

A crucial question. If a firm is vague about its charges, don’t hesitate to get quotes from other solicitors. Some solicitors have their own in-house conveyancing departments, which charge lower fees than the firm’s senior partner. There’s nothing worse than, at the end of the process, getting a surprisingly large bill for “disbursements”, i.e. expenses the solicitor has incurred making enquiries on your behalf. Sometimes this is inevitable if problems arise, but at least get a written quote that will give you an upper and a lower figure.

* Ring round two or three firms

When you are getting quotes, listen if one firm sounds more helpful, or keener on getting your business than the others.

* Keep nagging

Silence from your solicitor isn’t always a good sign. It might mean a rival bid is being pushed through, without your knowledge. Keep in constant contact – by email and by phone. Before exchanging contracts, check that any agreed remedial works have been done. And once you’ve exchanged contracts, get buildings insurance straight away.

* There are winners and losers

By no fault of your solicitor, you could lose out to a rival bid (perhaps they put in a higher offer). At the same time, though, you will have to pay your solicitor for their work.

* Chapter and verse

The Government website www.gov.uk/buy-sell-your-home/transferring-ownership-conveyancing makes it very clear what the vendor and the buyer is each responsible for.

* Don’t delay

If you find a house you like, put in your offer, insisting on exclusivity and requesting that the property be taken off the market. Make sure you have your finance in place beforehand.

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More on lettings rules and regulations

Legionnaires’ Disease

All residential properties which are rented out must now have a risk assessment undertaken to determine the risk of Legionella. This then allows landlords to implement a suitable control scheme.

Insurance

Landlord insurance is a growing area, with an increasing number of specialist policies covering a range of products from building insurance, contents, legal protection, rent loss and appliances. Having the correct insurance is vital and not being adequately protected could be disastrous.

Safety requirements

Before letting out a property, a landlord should ensure that the property meets all current safety regulations, these include:

Gas Safety Regulations 1998
Furniture and Furnishings (Fire) (Safety) (Amendment) Regulation 1993

Check-ins and check-outs

Conducting a proper check-in and check-out is essential. These should include a full inventory check, condition report check and a full set of dated digital photographs. If the landlord and the tenant can’t agree on what the tenant may be liable for at the end of the tenancy then the check-in and check-out evidence is the only way the landlord can prove their case. In contested cases, TDS adjudicators start from a position of ‘the money belongs to the tenant’ and it’s up to the landlord to prove otherwise.

Immigration Bill

From the 1st February 2016, landlords and letting agents must check that their tenants and any other permitted adult occupiers have the ‘right to rent’. As from this date, all prospective adult occupiers over the age of 18 will need to provide acceptable documentation to prove that they have the right to reside and therefore rent within England. The new changes will only impact on tenancies that commence on or after 1st February 2016.

The responsibility for carrying out the checks falls on the landlord, agent or householder, who is letting private rented accommodation. Where a managing agent has been instructed, the responsibility of checking the ‘right to rent’ of prospective tenants falls on them and not the landlord. If, however, a letting agent establishes that a person does not have the right to rent, and reports the matter to the landlord in writing, should a residential tenancy commence with the said parties, the landlord will then be liable to a penalty. Under the new rules, landlords who fail to comply could face penalties of up to £3,000.00 per adult occupier.

In order to comply with the new changes and in making ‘right to rent’ checks, a landlord, letting agent or householder should check the following prior to creating a residential tenancy;

1. Check which adult occupiers will live in the property as their only or main home.
2. Verify and take copies of acceptable documents for each adult occupier. Record the date of verification and noting any expiry dates of a person’s right to be in the UK.

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A guide for landlords to lettings rules and regulations

Deposits must be placed in a Tenancy Deposit Scheme

Any deposit funds must be placed in one of the three designated government backed Tenancy Deposit Schemes (TDS) within 30 working days of a tenancy commencing or the deposit being received. Failure to do so is a criminal act and may make the landlord liable for a fine at court of up to three times the deposit sum. Putting the money into a separate bank account doesn’t qualify. Failure to place a deposit fund within a scheme will

invalidate any Section 21 Notice (eviction notice) which the landlord wishes to serve.

Tenants can report poor housing conditions

Tenants can report poor housing conditions (eg no running water, excessive mould, etc) to their local authority. Under the Landlord and Tenant Act 1985, Section 11, the landlord has a legal duty to ensure the property is kept in repair and in working order unless damage is caused through tenant negligence. If a landlord does not carry out repairs under Section 11 of the Act within a reasonable time frame, in certain cases the tenant has the right to withhold the rent until work has been completed. Part 1 of the Housing Act 2004 risk assessment procedure – The Housing Health and Safety Ratings System (HHSRS) – assesses the risks to health and safety within residential properties and local authorities have the power to enforce action upon the landlord or letting agent to ensure the property is returned to a satisfactory condition.


Tenants are expected to keep a rented property in a ‘tenant-like manner’

Tenants are expected to look after their rented property and carry out small jobs around the property – subject to health and safety considerations. A landlord is not expected to repair or maintain items that a tenant has broken through negligence or misuse.

Tax evasion is illegal

Landlords who earn an income from their rental property must generally complete a tax return. Letting property is, in effect, running a small business and should be treated as such. HM Revenue & Customs can impose hefty fines on anyone discovered to be evading tax. Generally, the interest part of a buy to let mortgage can be off-set against the tax bill for the property along with various other concessions, however, following the recent Budget, this is set to change from April 2017. Check the HMRC website for full details.

Smoke alarms and carbon monoxide alarms

From October 2015 all privately rented properties must adhere to the changes outlined within The Deregulation Act 2015. Working smoke alarms are to be fitted to each property and carbon monoxide alarms are to be fitted in rooms that are classed as ‘high risk’. Further information regarding the changes can be found here.

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What would Brexit mean for the UK housing market?

On June 23 the EU referendum will take place but what will happen to property if Britain votes to leave?

Brexit could happen. And, if it does happen, nothing will be quite the same again. But exactly what effect a vote to leave the EU in the June referendum would have on the UK property market is far from clear. A lot more uncertainties would be introduced into equations in which there are plenty of uncertainties already.

The view taken by Savills in its analysis of the impact of the referendum on commercial, residential and rural property markets is that “the medium-term implications of the result of the referendum are relatively unimportant for real estate. The fundamental attraction of UK property assets has more to do with the assets themselves than whether they sit in or outside the EU.” For Savills, the biggest direct risk in a Brexit vote would be “the potential long-term reduction in subsidies in the agricultural sector,” which could have knock-on effects on the rural property market.

Political uncertainty, as recent experience has shown, causes property markets to stagnate. Buyers and sellers alike bide their time until after key decisions have been taken. In Scotland, the volume of investments soared to 45 per cent above average in the wake of the 2014 referendum. There was also a surge in the UK property market after the 2015 general election. People suddenly knew where they stood.

Most experts are predicting that a vote for Brexit on June 23 would lead to a period, perhaps as long as two years, in which the UK would be renegotiating its relationships with the EU and other trading partners. Some of the uncertainties of the pre-referendum period would also perhaps linger on, slowing down activity in the market. Some house-building programmes – vital to redress the imbalance between supply and demand – might be put on hold. But there is not much consensus about what shape the property market would be in once the dust finally settles.

Would overseas investors still regard the UK as a safe haven for their money if it left the EU? Not necessarily if you believe a recent survey by the property firm CBRE. It found that three-quarters of its investor clients would view the UK as a less attractive place to invest in the event of Brexit. But suppose that – as those in the ‘out’ camp claim – the UK economy surged ahead post-Brexit, freed from the shackles of EU regulation?

As part of a bigger picture, there have been plenty of negative rumblings from within the City about the ramifications of Brexit.

Jamie Dimon, the chief executive of JP Morgan has warned of a “massive dislocation” to the UK’s financial hub if on June 23 Britons take to the polls to vote ‘out’.

Speaking to The Financial Times, he said: “If we can’t passport out of London, we’ll have to set up different operations in Europe.”

And if this were to happen there could be a significant ‘brain-drain’ of talent as thousands of City workers relocate themselves abroad.This is a fiendishly complicated economic jigsaw scenario but if the pound fell sharply in the event of Brexit, the attractiveness of prime central London property to some overseas investors might also fall, with consequential effects for the rest of the property market. Equally, if prices were to fall, other investors might regard that as an opportunity to pick up a bargain. Another piece of the jigsaw is the value of London offices – which HSBC has predicted would fall in the event of Brexit.

Mark Charter of Carter Jonas in Oxford believes that any adverse impact of Brexit is more likely to be felt in rural areas than in cities. “You see a lot of ‘Leave’ posters on farmland but in some worst-case scenarios, farmers could have the most to lose. It looks as if the value of land has already peaked anyway. But we are not anticipating any major impact on urban properties in the £500,000 to £1.5 million range. A city like Oxford will always be attractive to buyers, whether we are in the EU or not.”

The only thing on which all are agreed is that, until a decision is taken, nobody can feel entirely confident on what the future will hold for the different sectors of the property market. Only time will tell.

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What does an EU ‘in’ vote mean for the UK property market?

The referendum will be held on June 23 but what do housing market experts think about an ‘in’ vote?

The only certainty about the impact on the property market if Britain were to vote to stay in the EU on June 23 is that there would be a lot less uncertainty. People who have lain awake at night spooked by worst-case scenarios in the case of Brexit would sleep easier in their beds. It would be back – more or less – to business as usual.

But even without Brexit vote, the summer of 2016 is not likely to be an entirely normal one as far as the property market is concerned. How many people, buyers and sellers alike, have been delaying their moves until the result of the referendum is known? And what will be the impact on the market of a sudden flurry of activity post-referendum? Late June normally marks the start of a quiet period in the housing market. This year could be a bit different.

According to figures from the property company Hometrack, in the 18 months leading up to the Scottish referendum in September 2014, property sales dipped by about 10 per cent. After that, there was a six-month period of catch-up. It was the same story before and after the 2015 general election. People bided their time until they had discovered whether there would still be a Conservative government or a Labour one determined to introduce a mansion tax and other fiscal measures with implications for homeowners.

The slowdown in market activity in the run-up to the referendum is likely to see a temporary dampening down of house price inflation. The spring, normally a hectic time, will be quieter than usual. But experts are not expecting prices to skyrocket from the morning of June 24 in the event of an ‘in’ vote.

“There is no doubt that such an outcome would remove any immediate economic uncertainty and market activity might be expected to recover any lost ground quite rapidly,” says Liam Bailey, Knight Frank’s Global Head of Residential Research. “That was certainly the experience following the Scottish referendum.”

But Bailey, like many experts, believes that the significance of the EU referendum in the context of the UK property market has been overstated in some quarters. “There is every reason to believe that the impact on the housing market would be relatively benign, whatever the outcome. That is because the mainstream housing market is primarily driven by domestic dynamics – notably the imbalance between supply and demand which is underpinning current housing market trends.”

Stuart Mills of Jackson-Stops & Staff in Wimbledon Village says: “We had an office meeting about the possible ramifications of Brexit a few weeks ago, and I made the tongue-in-cheek point: ‘Will the vote change anything either way? After all, the weather in Wimbledon will still be the same.’”

Mills believes that, while many of his clients have suffered from recent rises in stamp duty affecting second homes, even in the event of Brexit, it would take so long for the UK’s future relations with the EU to be sorted out that any knock-on effects on the property market would be quite limited. Similarly, a vote to stay in the EU would be generally welcomed but not to the tune of dancing in the streets.

Mark Granger, chief executive of property consultants Carter Jonas, said: “As we saw before the referendum on Scottish independence, many occupiers and investors delayed their decision-making. We expect a similar ‘wait-and-see’ approach as the EU referendum draws near, which could impact on sentiment and activity.”

As a general rule, few things cause more tremors in the housing market than political uncertainty. So most property professionals are likely to breathe a small sigh of relief in the event of an ‘in’ vote on June 23.

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Thinking of buying a second home? A guide to stamp duty changes

Ten key points to consider when buying a second home for your own use or as a buy-to-let investment

To buy-to-let or not to buy-to-let, that is a difficult question! It can be quite a conundrum for people with capital to invest who are dithering between the stock market or bricks and mortar.

Since April 1 – as many homeowners will be aware – a stamp duty surcharge of three per cent has been levied on second homes with obvious implications for the buy-to-let sector. If you are contemplating a second home, whether for your own use or as a buy-to-let investment, here are the 10 key points to bear in mind.

1. Stamp duty – or to give it the full title, stamp duty land tax (SDLT) – is a tax paid by homebuyers when they purchase property or land. The tax is banded so that no tax is levied on properties worth less than £125,000, but £7,500 on a property worth £350,000 and £43,750 on a property worth £1million, and so on.

2. Since April 1 second homes have been subject to a three per cent stamp duty surcharge. Under the banding system, second homes worth less than £125,000 now attract three per cent tax instead of zero. Those worth between £125,000 and £250,000 now have a five per cent rate rather than two per cent, and so on. At the top end of the scale, second homes worth in excess of £1.5million attract 15 per cent stamp duty rather than 12 per cent.

3. Visit the government’s stamp duty calculator to work out tax liabilities.

4. Second homes – for the purposes of the stamp duty surcharge – are homes other than a main residence whether they are let or not. It does not matter if a main residence is overseas because a second home in the UK will still be subject to the stamp duty surcharge. However, a buy-to-let property will not attract the higher rate if the main residence is rented, not owned.

5. Homebuyers helping a family member buy a property will still be treated as second home owners and the relatives will be liable for the surcharge.

6. Anyone owning two homes because they have bought a new one, but not yet sold the old home, will have to pay the three per cent surcharge. But if the old home is sold within three years, the three per cent will be refunded.

7. No one will be able to escape the higher rates of stamp duty by ‘flipping’ properties which is defined as moving into a new home, designating it a main residence, then letting out the old home.

8. Couples who have separated, but not yet divorced, and own two properties between them, will not be treated as second homeowners. But couples living together, whether married or not, will be treated as one unit. They will not be able to buy a second home and escape the surcharge by putting one property in one partner’s name and one in the other’s.

9. Stamp duty is not payable on caravans, mobile homes or houseboats.

10. It is sometimes possible to reduce stamp duty liabilities by designating a property, whether the main home or a second home, ‘mixed-use’: i.e. used for both residential and commercial purposes, such as running a small business. But this can also expose the homeowner to higher business rates and higher rates of capital gains tax. If in doubt, talk to an accountant or mortgage provider about tax liabilities.

Please contact us on 020 8643 7777 or email at info@christiesworld.com

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A guide to getting your home ready for viewings

A picture speaks a thousand words
The first thing that potential buyers see when they enquire about a particular property is the ‘property details’. This is a bespoke document, produced by us. It isn’t just a mundane list of power points, number of radiators and confirmation that you have dado rails; it’s a high-spec brochure designed to really sell your house. We take professional quality photographs, we’re honest and we’ll shout loudly about your home’s best bits.

First impressions really do count

Stand outside your property and try to look at it with a fresh pair of eyes. Does it have ‘kerbside appeal’? Is the lawn mown? Are the flower beds neat? Is the front door grubby? Do the bins need emptying? If you have a communal entrance hall, does the carpet need a hoover? Are there piles of mail making the place look untidy? In the winter, make sure any paths or steps are clear of snow and ice. If you have a doorbell, make sure it works.

Let them see the light

If your viewing’s after dark, think about the lighting so your home looks warm and inviting. Make sure house numbers and names can be seen clearly so your potential buyer can find you. Keep the porch or hall light on. During day time, make sure curtains and blinds are left open to maximise natural light into your home.

Fatal distraction

Your cat or dog might be your best friend and your kids are your pride and joy, but do keep any pets or children quiet or out of the house when you have viewings if you can. Let your potential buyers see your property without any distractions. Turn your music off too.

Spit spot!

Full redecoration is unnecessary, but do give your home the once-over and do any little jobs that might be making the place look more shabby than shabby-chic! Repair any peeling wallpaper, touch up chipped or marked paintwork, dust the skirting boards, clean the kitchen cupboards, wash the floors, replace any light bulbs, thoroughly clean and tidy every room. And please, please, please… clean the windows!

Get a handy person in

If there are other things that are letting your property down (broken sash cords, missing doorknobs, broken tiles, dripping taps, cracked/ missing sockets), then get them sorted. It will be money very well spent.

Kitchens and bathrooms sell homes

This really is true so pay particular attention to these rooms. Put away as many of your items as possible so your potential buyers see clutter-free surfaces. Taps covered in limescale, a stained bath and grubby, cluttered worktops will not create a very good impression, so get your Marigolds on and clean, scrub and polish until these rooms look shiny and inviting!

De-clutter and recycle

Lots of storage space is always popular so do everything you can to maximise what you have. Sort out your attics and basements, make sure any cupboards are tidy and organised, recycle anything you no longer need or want (be honest) and generally have a good clear-out. It’ll be one less thing to do when you do move out.

Crowded house

Potential buyers always feel a bit like they’re intruding so minimise the amount of people in the house when you have viewings. If you are showing a potential buyer your home let them look around at their own pace and give them the option to explore on their own. They will have a great deal to think about and discuss and sometimes that’s easier if you’re not following them from room to room! Suggest that you leave them to it and offer to answer their questions once they’ve had a good look round.

Please contact us on 020 8643 7777 or email at info@christiesworld.com

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Need to sell fast? Hurry, hurry, hurry - last chance to get your property in our next Auction.

Still time to enter lots in Christies Network Auctions’ July Auction

NAVA auction house of the year, Christies Network Auctions are still accepting lots for entry in their July auction at the Grosvenor House hotel in London on July 7th.

Sellers will need to move quickly though as the catalogue will close to new entries on June 14. A wide variety of lots have already been listed and will go under auctioneer Guy Charrison’s hammer on the day.

Auctions provide a fabulous opportunity for sellers to dispose of property in a fast, transparent and certain way with Christies Network Auctions regularly selling more than 80% of the lots offered at their auctions.

Christies Network Auctions hold eleven auctions every year with six in London and five in Birmingham.

Jeremy Richardson said: “Despite current uncertainty caused by the Euro referendum at the end of June, we anticipate a positive auction in July as buyers will have an opportunity to take decisions already knowing the outcome.

Auctions are a transparent, fast and secure method of sale and we look forward to announcing the result of another successful sale on July 7th.”

To discuss selling or buying by auction, Christies Network Auctions can be contacted on 020 8643 7777 or email at info@christiesworld.com

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This Blessed Plot

Nick Churton of our London Mayfair Global Network finds evidence that not a great deal has changed in four hundred years when it comes to property investment.

William Shakespeare, who died 400 years ago last month, knew a thing or two about plots. And not just plots for his plays; he also developed an eye for plots of land and the buildings on them.

Part of Shakespeare’s genius was powerfully and colourfully exploring human nature in all its brutal, funny, frail, tragic and complicated guises. Over the centuries human nature hasn’t changed much so it is easy to imagine that the bard would have handled his property affairs today as he did four centuries ago. Shakespeare, it seems, not only had a way with words but a talent for investing in bricks and mortar.

In this he demonstrated a true understanding of the art of property. For instance he understood about investing in areas he knew well: his birthplace, Stratford upon Avon, and his workplace, London, where he invested in up-and-coming areas such as Bishopsgate, Blackfriars, Southwark, and what we know now as the Barbican.

Shakespeare really appreciated location. Although he did not coin the phrase, location, location, location, he certainly could have done, such was his appreciation for finding the ideal position for a home or a theatre. Shakespeare clearly understood that knowing one's market is key to successful investment in property.

With his outstanding knowledge of human nature Shakespeare may well have proved a skilled negotiator by identifying strengths, weaknesses, opportunities and threats in people as well as the property market. And although he had a wonderful appreciation of history he must have had a very clear view on the future as well.

There were no estate agents in the early 17th century. They wouldn’t start to appear in the UK for another 250 years. So Shakespeare was on his own. Today you needn’t be. The housing market is so much more complicated now. So if you are moving home, buying to let or wanting that dream holiday home ask a well-established and reputable estate agent like us. We have the know-how and experience. We will also care about you and your blessed plot.

Please contact us on 020 8643 7777 or email at info@christiesworld.com

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