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Alan Cooke Joins The Globrix Revolution
Alan Cooke has become the latest company to join a new property search website that's taking the house-hunting market by storm.
All of the properties on Alan Cooke's books will now be available via www.globrix.com, opening them up to a massive nationwide audience.
Globrix is a new type of internet property search engine. It has one of the largest indexes of properties of any site and lets users search for homes by a huge range of criteria. On a normal property search site you're restricted to looking for homes by just price, location and number of bedrooms. Globrix changes all this and lets you refine your search to look for specific features (such as wooden floors or swimming pools), particular house types (such as bungalow or Victorian house) or even things like type of outdoor space or proximity to schools.
By joining Globrix, Alan Cooke is offering all of its sellers a new way of getting their property in front of thousands of potential buyers.
Daniel Lee, the CEO of Globrix, said: "It's great to have Alan Cooke on board - by joining the Globrix community they're becoming part of a new service that's going to revolutionise the way people look for homes. By including their properties in the Globrix search engine, Alan Cooke are making sure that they and their clients are making the most of the Internet when it comes to selling their homes - something that every seller needs to be sure of if they want to get the best price!"
A spokesperson for Alan Cooke, said: "Globrix is really shaking up the online property market and we realised that it was important that our clients get the benefit of what they're offering. Our vendors are highly impressed with the way properties are displayed, and we are delighted that users can now directly access our own very successful website either by clicking on the individual property or the Alan Cooke banner advert. "
Bank details £50bn lending boost
Source: BBC News 21st April 2008
The Bank of England has announced details of a £50bn plan to help prevent the credit crisis causing more damage to the UK banking system and economy.
Banks will be able to swap potentially risky mortgage debts for secure government bonds to enable them to operate during the credit squeeze.
The Bank's governor, Mervyn King, said the scheme aimed to improve liquidity in the banking system.
It should also increase confidence in financial markets, he added.
Under the scheme, banks will be allowed to swap their "high quality" mortgage debts for government securities.
The swap scheme, which starts on Monday, will be for a period of one year and may be renewed for a total of three years.
It will only apply to mortgage debts on banks' books at the end of 2007 and the swaps cannot be used to finance new lending.
The central bank anticipates that initial take-up of the scheme will total £50bn but there is no cap on lending.
Protection
Prime Minister Gordon Brown said the scheme was one of a range of measures to protect British workers from the turbulence in America's financial and housing markets.
"We can get markets working again in a way that we can ensure that jobs can be continued, and of course businesses can have the finance they need," Mr Brown said.
Banks welcomed the central bank's "innovative and unique policy response" and said they were confident the move would go some way to free up credit markets.
"The banks are participating in this arrangement and expect it to make a significant contribution to alleviating the pressures in the UK money markets," the British Bankers' Association said.
Beneficial effects
British banks have become increasingly unwilling to make loans, even to each other, as a result of the credit crisis, which was triggered by massive losses for banks involved in the US sub-prime mortgage market.
And many investors, concerned at what happened to sub-prime mortgages in the US, no longer want UK mortgage-based assets.
The disappearance of this market has deprived banks of tens of billions of pounds of finance for mortgage lending.
The move should free up bank balance sheets and enable them to lend more to consumers and home buyers.
However, the Council of Mortgage Lenders said that the liquidity boost would not automatically reverse the recent trend for higher mortgage costs.
"Further details are...awaited on how much of the additional liquidity might be recycled responsibly into mortgage products or pricing," it said.
Bail-out?
The BBC's business editor Robert Peston said the primary purpose of the scheme was to prevent another Northern Rock.
"Or to put it another way, taxpayer support is being provided to minimise the risk of huge future losses for taxpayers from another banking collapse."
"This is a banking market bail-out of an ambition we haven't seen in this country since the early 1970's and possibly longer than that," he said.
But Mr King said the plan ensured that the risk of losses remained with the banks and said those banks taking advantage of the scheme were not being "bailed out" by the taxpayer.
"The banks are now paying a price for what's happened before. They are going through a painful adjustment," he said.
Banks will be required to pay a fee for the swap facility and they will have to provide the Bank of England with assets of greater value than the government bonds they will receive.
Warning
Mr King warned banks against using the government funding to carry out the type of mortgage lending seen in the past, such as 100% mortgages.
"The aim of the scheme is to increase the liquidity of the banking system as a whole. It's not part of this scheme to take us back to the excessive lending of a year or more ago," he said.
Chancellor Alistair Darling, who will address the House of Commons later, said on Sunday the plan was needed to stop the UK's financial crisis worsening.
Vince Cable, the Liberal Democrats' Treasury spokesman, said he had reservations about the idea.
"If the government is going to create this enormous overdraft facility for the banks - essentially what it's doing - it should be linked to changes in the banks' behaviour," he said.
"The banks have got to acknowledge their losses."
Shadow chancellor George Osborne said the move should help to unblock the financial system and help mortgage-holders who need to re-mortgage in the next year or so get a better deal.
Until now, the Bank of England has been more conservative in its financial support for banks than the Federal Reserve in the US and the European Central Bank.
In the US, the Federal Reserve took similar action with a $200bn programme to boost liquidity in financial markets last month.
Bank lowers interest rates to 5%
Source: BBC News 10th April 2008
UK interest rates have been cut to 5% from 5.25% by the Bank of England in an attempt to spur the economy in the face of the global credit crunch.
It is the central bank's third cut in interest rates since early December.
The Bank said that disruption in financial markets and tighter credit conditions could lead to a slowdown in the wider economy.
The largest mortgage lenders say they will pass on the cut to their mortgage customers who pay variable rates.
Decision welcomed
Business groups welcomed the decision and called for further cuts to shore up growth.
"It is vitally important to ensure that problems in the financial sector and in the housing market do not damage wealth-creating businesses," said David Kern, economic adviser to the British Chambers of Commerce.
"Undue delay in acting threatens to reduce the effectiveness of interest rate cuts that the MPC itself has anticipated already."
The cut had been widely forecast by economists.
"So far the Bank's gradual approach to cutting rates has been the right one," said Martin Temple, chairman of the EEF manufacturers' group.
"But, given how quickly the situation is changing, there are now greater risks to business and consumer confidence."
Mortgage rates
The UK's biggest mortgage lenders responded quickly, saying they would cut their standard variable mortgage rates by the full quarter of a percentage point.
Their mortgage rates which track the Bank of England's base rate will be cut automatically also.
The lenders that have said they will do this are the Halifax, Nationwide, Bank of Scotland, Britannia, Lloyds TSB, Cheltenham & Gloucester, First Direct, Royal Bank of Scotland, NatWest and Woolwich.
Most of the rest say they say they will take from a few days to two weeks to decide how to respond.
Despite this widely anticipated move by the Bank of England, many mortgage lenders have in recent weeks had to withdraw their most competitive deals for new customers.
Obtaining funding from the money markets has become more costly for banks as a result of the uncertainty in financial markets and a shortage of funds caused by the global credit crisis.
"This is good news for those borrowers with mortgages tracking the Bank base rate," said Michael Coogan, director general of the Council of Mortgage Lenders.
"But in these dysfunctional market conditions, the base rate is not in itself a good guide to the cost or availability of funds to lenders."
Before the rate decision, Alliance & Leicester said it was raising rates on its entire mortgage range for the second time this week.
Nationwide said it was raising interest rates on some of its fixed-rate products by between 0.12% and 0.32% from Friday.
Inflation risk
BBC economics editor Stephanie Flanders says that the quarter of a percentage point rate cut indicates that the state of the UK economy is broadly in line with the Bank's expectations.
That translates as slowing annual economic growth of between 1.5% and 1.75% this year, but not a recession, although inflationary pressures would still remain a problem.
The Bank said inflation could remain above the government's target of 2%, but should fall back, even if the price of oil and other commodities remain at their current high levels.
It did not mention the housing market in its statement, but analysts said recent downbeat news on property prices had influenced the nine-strong MPC.
The Halifax, the UK's largest lender, said on Tuesday that house prices fell by 2.5% in March, the biggest monthly decline since September 1992.
"The re-emergence of tensions in UK money markets, combined with evidence of a sharper deceleration in the housing market, has spurred the MPC into action," said Stuart Porteous, head of economics at RBS.
Ownership
FAQs on ownership
What is shared ownership?
Shared ownership schemes let you buy a share in a property rather than buying all of it - so you only take out a mortgage on what you can afford in relation to your savings and salary.
You are then either given a low-interest loan by the government and housing associations to pay for the share you don't own, or you pay rent on it to a housing association, depending on which shared ownership programme you choose.
Who is shared ownership for?
Shared ownership schemes are designed for people who are unable to raise a large enough mortgage to buy a property outright - generally first-time buyers.
The government's scheme, known as HomeBuy, prioritises some buyers over others. People at the top of the list include keyworkers - those in "key" jobs such as nursing, teaching, firefighting and the police force - and people on housing association lists (those who are existing local authority and housing association tenants).
If you are not a keyworker you can still apply, as long as you are a first-time buyer who is unable to afford a property outright, although you will be lower down the priority list. The organisations behind shared ownership schemes say they are seeing increasing interest from the young graduate market and professionals on mid-incomes of £30,000 upwards.
Why are most shared ownership schemes in London?
Most developments are in London and the south-east because this is where demand for affordable homes is at its highest.
In London, applications for shared ownership schemes are managed centrally by Housing Options. You have to fill in a form stipulating which HomeBuy scheme you wish to use (see below) and outlining details of your salary and savings. Once your form is submitted you will be contacted for a full financial assessment.
Shared ownership schemes are in existence outside London, however, and your local housing association will be able to tell you about it. Details on finding the association in your borough are available from the Housing Corporation.
What schemes are available?
In 2006, the government tried to revamp shared ownership under a range of HomeBuy schemes, but some of them turned out to be flops.
There are now three main government schemes, all of which offer shared ownership for first-time buyers and key workers: MyChoice HomeBuy, OwnHome, and NewBuild HomeBuy. There is also a scheme for existing social housing tenants called Social HomeBuy.
MyChoice HomeBuy and OwnHome are the latest versions of shared ownership and were launched in this year's budget. They are sometimes referred to by their old name, OpenMarket HomeBuy.
How do those schemes work?
MyChoice HomeBuy
For: Keyworkers earning less than £60,000 and first-time buyers, prioritising those on housing association lists, followed by non-keyworkers earning less than £58,600.
How it works: Applicants can take out a mortgage on 50% of the value of the property they wish to buy. This can be from any high street lender.
Instead of having to find a deposit for the remaining share, buyers can raise up to the remaining 50% of the purchase price with a low-interest equity loan funded jointly by the government and a consortium of the eight housing associations involved with the scheme. In the first year the interest on this loan is charged at 1.75%; in future years it rises to RPI plus 1%.
Homeowners can increase their share in the property by 10% at a time by gradually buying more chunks, or staircasing up, as they can afford to do so. Remember, you will need to meet the usual costs of buying a home, including legal fees and mortgage application fees.
How to apply: Register on the Housing Options website, the central portal for shared ownership applications for people in the south-east. The online form will ask you to fill in your personal details and ask about your earnings and savings.
OwnHome
For: Keyworkers earning less than £60,000 and first-time buyers, prioritising those on housing association lists first, followed by non-keyworkers earning less than £58,600.
How it works: This scheme is run by housing and regeneration group Places for People alongside the Co-operative Bank. It allows eligible buyers to take out a traditional mortgage for a minimum of 60% of a property's value from the Co-op, while Places for People provides an equity loan of between 20% and 40% up to a maximum of £165,000.
On this scheme there is no interest to pay on the equity loan for the first five years. Between years six and 10 the rate is 1.75% a year, and after that it rises to 3.75%. After the mortgage deal has come to an end the borrower can remortgage away from Co-op.
How to apply: Call the OwnHome helpline on 0845 607 0110 or visit OwnHome.
NewBuild HomeBuy and Social HomeBuy
For: Keyworkers and first-time buyers, prioritising those on housing association lists.
How it works: Applicants take out a mortgage on a share of the property - they must be able to purchase between 25% and 75% of the total value of the property through the mortgage and any deposit they can afford to put down. The remaining share is rented from a housing association. Buyers have the opportunity to staircase up over time.
Unlike MyChoice HomeBuy and OwnHome, which let you pick any property (new or old) that is on the market, NewBuild HomeBuy will only let you buy new-build properties from specific developments in your area. Properties are usually, but not always, sold off-plan before the development is complete.
Social HomeBuy works in exactly the same way but is meant for existing social housing tenants.
Portals: Globrix leading the new challengers
Source: Estate Agency News
Agents sign up to advertise on News International-backed site
THE portal marketplace is by no means a static one as many agents are finding out by the number of places in which they now see their properties appearing.
In the 'good old days', the portals used to approach agents and come to them with a proposition to get you to add your properties.
Some were for free - in the first instance - such as Rightmove and Assertahome, later known as Propertyfinder. Others charged from the outset - Findaproperty charged £1 per property per week.
Now the new generation are looking at alternative ways of generating revenue and not necessarily charging agents directly for doing so.
The latest to make a significant impact is Globrix - www.globrix.com. The site was first launched in November 2007 after being founded by two technology experts with expertise in the algorithmic search area.
They hit the headlines with announcement of a funding deal with News International and are now starting to make an impression in the marketplace.
Property is key to the success of any property site. If a site only has limited property stocks, visitors know they have to go elsewhere to complete their search.
The technology that Globrix employs enables them to search agent websites directly and extract the information - in much the same way as Yahoo and Google do in their search engine technology.
The way it is done is simple in that it is equivalent to a single user visiting and requesting a property every five seconds or so.
Once the property data is extracted the user can access it in many ways as the search engine technology allows the use of keyword searches.
This can be useful if you have certain immovable criteria and indeed when narrowing the search from a long list or a crowded map.
Of course, Globrix offers a map search and the search can easily be modified.
A simple slider bar at the top of the screen controls price but the really clever feature is the use of expandable alternative control buttons in the left hand bar.
As well as the usual control over numbers of bedrooms and bathrooms and type of home, the keyword feature allows many different search options - and the number that are available with the feature.
Station and school searches are easily done and clicking on the smaller box in the corner can move the map search.
I found it very easy to use, informative and, of course, it links directly to the agent site so one can contact the agent direct and get more information.
However, at present, there are no e-mail alerts for property searches and to check for new property one has to go back to the site.
The standard new property alerts of the portals are invaluable to a home hunter - especially in a fast-moving market.
It appears as if one has to register on each individual site and that is not what most home hunters want to do.
The link with News International - Rupert Murdoch's media giant which owns Sky, Fox and domestic newspapers The Sun, News of the World, The Times and The Sunday Times - is helping to promote the site and Globrix have just announced that some key London estate agents including Foxtons, Knight Frank and Savills have become lead advertisers in the banner column alongside the search results.
Competition in London means that agents are always seeking ways of standing out from others.
But traditionally it has been much more difficult to persuade provincial agents to increase their spend - and certainly the good agents of Harrogate, Exeter and Tunbridge Wells do not appear to have been persuaded yet!
In time, no doubt, they might and there may even be a race to take the two limited positions for estate agents.
At the moment, the shareholder agents from Rightmove are blocking Globrix from crawling their site.
That may prevent Globrix achieving their aim to become the number one site for property numbers although they are getting the Countrywide properties now they are no longer part of Rightmove.
Agents can block the crawlers if they want but most sites are actually optimised to let the search engines gather information. Very few deny access to Google and the like!
The real test will be whether Globrix can generate sufficient impact with users. At the moment they hardly register on the internet marketing measurer Comscore.
Others, however, are making progress. Nestoria have moved up the rankings significantly so maybe Globrix will be able to as well.
Nestoria hit the top 15 in December and with recent links with even more portal providers and their newly-launched white label partnerships with Channel4homes and The Independent, they seem to be making significant progress.
As with Globrix, there is no cost to the agents whose properties are advertised on the site.
HIPs
Source: home-information.info
FAQs on compliance
We have been receiving feedback that some estate agents have questions about how to interpret the HIP regulations correctly. This issue of PROGRESS looks at frequently asked questions on compliance.
What constitutes marketing, and do 'informal or one-off viewings' trigger the HIP duties?
Section 149 of the Housing Act 2004 provides that a property is put on the market when the fact that it is available for sale is made public. A fact is made public 'when it is advertised or otherwise communicated (in whatever form and by whatever means) to the public or to a section of the public'. Communication of availability for sale by word of mouth or other means is therefore caught, and counts as marketing.
One-to-one sales that do not involve any other person and do not involve marketing to a 'section of the public' are not caught by the legislation. But section 159 of the Housing Act 2004 provides that where someone acting as an estate agent introduces a seller to a buyer as part of a business, that is treated as a 'qualifying action' which triggers the HIP duties.
This means that the HIP duties will usually be triggered where an estate agent, as part of his business, arranges 'informal or one-off viewings' of a property that is available for sale, or communicates this availability by any means to anyone as part of an attempt to sell it.
When should an estate agent show the EPC to a prospective buyer?
At the earliest opportunity.
Regulation 5(2) of the Energy Performance of Buildings Directive (EPBD) regulations requires the relevant person to make the EPC available to a prospective buyer at the 'earliest opportunity'. Therefore an agent who has a HIP (including an EPC) in his possession is under a duty to inform a prospective buyer who shows an interest in the property that the EPC (at least) is available for inspection.
What constitutes requesting or ordering a HIP?
The request must be made in writing* to a person who would normally deal with such requests (e.g. a pack provider company) in order to comply with the HIP regulations. It should be made in the appropriate format together with any payment or commitment to pay that is normally required. There should also be an expectation that the documents will be made available within 28 days of the first point of marketing and all reasonable efforts should be made to obtain the documents before then. Where the documents cannot be obtained within 28 days, the responsible person must continue to make reasonable efforts to obtain them as soon as possible. Therefore, if you are found to order the pack but not make arrangements for payment or make reasonable efforts to ensure it is produced in good time, this would be an example of non-compliance. In such cases, a £200 penalty could be imposed on the estate agent marketing the property and this could, in turn, lead to a banning order from the Office of Fair Trading if there were a number of such breaches.
* Unless it is an oral request made to the Land Registry under Land Registry Rules
To qualify for the exception for properties marketed before HIPs came into force, is it enough simply to have entered into a contract with an estate agent before the commencement date?
No. The exception only applies where the property was actively marketed for sale before the appropriate commencement date (see below) and you may be asked for evidence of this. If it was marketed on or after the following dates and you have not commissioned a HIP, you are not complying with the regulations.
- 1 August 2007 - for sales of homes with four or more bedrooms
- 10 September 2007 - for sales of homes with three bedrooms
- 14 December 2007 - for sales of homes with two bedrooms or fewer (or none).
If I agree to an estate agent showing potential buyer/s my property, even though we don't have a written legal agreement, do I need a HIP?
Yes. Provided the agent is marketing the property on your behalf, a HIP would be required and it would be the responsibility of the agent to ensure this.
Not having a HIP in place or ordered could lead to a £200 penalty for the estate agent marketing the property. This could lead to a banning order from the Office of Fair Trading if there were a number of such breaches.
I receive e-mails about properties from a company that passes on information about homes where the seller wants to sell quickly. Are they required to provide me with a HIP?
Yes. Provided the information is passed to more than one person, that would be marketing to a 'section of the public'. A HIP would be required from whoever is treated as responsible for marketing. This would be the seller himself if the company was not acting as an estate agent on his behalf.
Do EPC graphs need to be included in the estate agents particulars?
Yes. The rules require the Energy Performance Certificate to be attached to the written particulars or, alternatively, for the EPC graphs to be included in them. This applies to electronic copies of particulars posted on websites as well as paper copies.
Example particulars, including the EPC graphs, are available at:
http://www.home-information.info/doc?id=133
If a seller instructs multiple estate agents do they all require a copy of the HIP?
Yes. Even if the HIP is ordered through one agent all agents should:
- hold evidence of the HIP being commissioned before marketing begins;
- hold a copy of a compliant HIP and make it available on request to prospective buyers or enforcement officers; and
- include the EPC graphs on particulars.
Failure to comply with these requirements could be treated as a breach of the duties.
If I change estate agent, is the HIP commissioned by the first agent valid for use by the new agent?
Yes. A HIP is valid as long as it complies with the regulations and there has not been a break in marketing. However, whether the vendor can take the HIP with them will depend on the ownership of the HIP and the commercial terms that the vendor agreed with their estate agent or HIP provider.
Common payment options and terms offered in the market include:
- Upfront Payment - If a seller has paid for a pack up front in full they would expect to be able to take the HIP to their new estate agent
- Deferred Payment - i.e. an agreement is made to defer payment for the HIP to a later date. Once the seller has paid for the HIP they should be able to take the HIP with them to a new agent
- A 'free' HIP included in the estate agents fees - Some estate agents offer free HIPs and may retain ownership of the HIP even if the seller decides to change estate agents. Some agents will release the HIP if a withdrawal fee is paid
Bulletin and round-up
Guide to Financial Support for Improving Energy Efficiency
CLG and the Energy Savings Trust have produced a short guide for householders in England and Wales on ways to cut down on energy bills and the financial support available for implementing energy efficiency measures in their homes. This includes the support available for acting on recommendations in the EPC.
Multiple hardcopies can be ordered free by e-mailing communities@twoten.com quoting product code: EST/HIP/08.
EPCs and climate change
The EPC is an important part of the HIP and underlines the Government�s commitment to cut carbon emissions. Here we feature some core facts about energy savings and how EPC recommendations can help cut fuel bills.
[Source: Energy Savings Trust]
Each household in the UK creates around six tonnes of carbon dioxide a year. That�s six times the weight of the rubbish an average household throws away in a year. It�s also double the carbon dioxide emissions that the average car produces in a year. By following recommendations that come with EPCs, you can cut down the emissions that come from your home and cut your fuel bills.
For more information on EPCs and green issues visit:
http://www.communities.gov.uk/epbd
http://www.energysavingstrust.org.uk
HIPs - Who needs one?
Properties marketed for sale from 14 December 2007 in England and Wales will need a HIP (Home Information Pack), which includes a home energy rating.
It is the responsibility of the seller to compile the pack, but they might wish to get their estate agent or one of the businesses devoted to providing HIPs to do it for them.
Scotland is due to get its own version in 2008, which will be slightly different to the Scheme in England and Wales.
It will be known as the Single Survey Scheme or Purchasers Information Pack (PIP).