Tag Archives: consumer
PRS issues further guidance on unfair lettings agent fees in UK
The Property Redress Scheme (PRS) has issued further guidance on unfair fees being charged by letting agents in the UK. The PRS is one of three consumer redress schemes authorised by the government whose role it is to provide fair and reasonable resolutions to complaints between members of the public and property agents and professionals. In England and Wales, letting agents are able to charge prospective and existing tenants for services and administration in addition to any rent or deposit paid. Such practices are illegal in Scotland where tenant fees have been outlawed since 1984. In a report issued by the PRS last month, it was revealed that of the complaints about agent members raised with the scheme, the most common grievance involved unfair or excessive fees being charged to the consumer. This has been reinforced by figures recently issued by Citizens’ Advice, who have hit out at agent’s ‘inexplicable fees’. In order to aid fee transparency and educate Member Agents, the Property Redress Scheme has issued two guides, one for agents and their landlords and another for agents and their tenants. It is not the role of redress schemes to prescribe or prohibit any fee in general. However, agents must be able to provide evidence to support the fees that they charge. A PRS Ombudsman may choose to make an award to the consumer if it is decided that the Member’s fees are unfair or have not been presented in a clear and transparent way. The guides have been summarised from the Competitions and Markets Authority Guidance (CMA) for lettings professionals on consumer protection law and are designed to help each party understand what may be deemed as an obscure or unjustifiable fee. ‘As a scheme, we felt that the subject of agent fees needed to be looked at in an objective and reasoned way and that agents should be provided with guidance on what they can and can’t charge. Tenants and landlords also need help understanding what they can complain about and which practices are legitimate and legal,’ said Sean Hooker, head of redress for the PRS. ‘Given the importance of this area and the fact that the redress schemes are now a major part of the mainstream lettings industry, it would have been remiss of the scheme to duck the issue and not make our agent members fully aware of their obligations,’ he added. The main purposes of the Property Redress Scheme are to allow agents to comply with their legal requirement to be a member of a government authorised consumer redress scheme and to settle or resolve complaints made by consumers against members. It is authorised by the Department for Communities and Local Government to offer redress to lettings and property management agents and the National Trading Standards Estate Agency Team (formally the OFT) to… Continue reading
Scotland’s house prices dip after post referendum boost
Residential property prices in Scotland fell 0.1% in November, reversing October’s uplift in the wake of the independence referendum vote, the latest index shows. There was also a slowdown in annual growth to 4.3%, less than half the 10.6% yearly rise across England and Wales, according to the Your Move/Acadata index. It takes the average house price to £164,607 and sales were up 6% annually in November, however the data shows that a quarter of all activity was concentrated in Edinburgh and Glasgow. But prices in Midlothian have seen their highest annual jump, up 10% with this being put down to a 30% leap in local first time buyer sales. According to Christine Campbell, regional managing director of Your Move, the Scottish property market is only just starting to recalibrate after the temporary disruption of the referendum. ‘The immediate feel good factor following the vote led to an artificially upbeat October, but the dust is settling. Average house prices across Scotland dipped as normal business resumed and familiar market trends reappear,’ she explained. The data shows that overall, property values fell in over half of Scotland’s local authority areas in November and it means annual house price growth in Scotland is currently lagging well below the pace being set across England and Wales. ‘However the underlying upwards momentum is robust. Scottish property values have climbed a healthy 4.3% in the year to November, equal to £6,750 on average. In the last 12 months, fourth fifths of the nation’s local authorities have witnessed increases in house values,’ Campbell pointed out. ‘But the overwhelming majority of Scotland is experiencing annual property price growth in excess of inflation. The lion’s share of home owners are enjoying real tangible growth in the value of their home beyond the 1% Consumer Price Index rate of inflation,’ Campbell said. ‘For example, the highest annual leap in values was found in Midlothian, with prices soaring 10%, more than double the wider nationwide average. Here, prices have been driven up by a considerable 30% uplift in sales of flats and terraced properties in the past 12 months. This burst of activity has pushed the typical cost of a flat in the area to £120,000, up from £100,000 a year ago,’ she explained. She also pointed out that while prices may have slipped back on a monthly basis, activity is still making stable progress. ‘This has been the strongest November for sales in seven years, with transactions up 6% on 2013. As first time buyers continue to pour into the market, the most frequently purchased type of property in Scotland are flats, with sales of this type of property growing 9% year on year in the three months to November 2014,’ said Campbell. ‘Argyll and Bute saw the biggest monthly jump in prices, up 5.8% since October, and this was propelled by a 24% annual surge in sales in the three months to November 2014, including a 50% climb in flat transactions…. Continue reading
UK retail property market needs to take online shopping into account in 2015
A dwindling supply of well-located retail property stock in the UK will continue to drive South East and London rental growth, which will be factored into pricing by investors, according to a new analysis. Well-placed good secondary retail assets with solid demographics, will sell well and overall schemes with the broadest consumer appeal will thrive at the expense of the poorer quality ones, says the latest UK retail property market outlook 2015 report from Knight Frank. Key attributes could be the quality of tenant mix and accessibility, although the out of town market has moved steadily towards fun shopping, the report suggests. ‘As we have seen with high streets and shopping centres, the best out of town parks now provide an increased focus on a strong leisure and catering offer aimed at prolonging dwell times and boosting expenditure, the report explains. One potential cloud on the horizon, with the growth of online sales bringing store networks under ever increasing scrutiny, is the forthcoming rush of lease expiries will provide retailers with an unprecedented opportunity to reduce property costs by downsizing their portfolios. ‘This is likely to reinforce the polarisation already being seen in the market, with secondary/weaker schemes suffering at the expense of the better schemes, bringing with it greater divergence in investment performance. That said, while the rise of online shopping may result in smaller store portfolios, the growth in click and collect is helping to maintain the importance of the store,’ the report adds. Knight Frank predicts that omni channel retailing will become the dominant norm in 2015. Occupiers will need to implement in store technology advancements in order to keep the consumer engaged and enhance the customer experience. Retailers should embrace strategies in which mobile, online and in-store experiences should complement, rather than compete with, one another. The firm also predicts that the first half of 2015 is likely to be dominated by uncertainty surrounding the general election. However, retail sales will receive a boost from a buoyant labour market, lower inflation on the back of the fall in oil prices. Slower but still positive house price growth will continue to support strong consumer confidence. But the retail market continues to be driven by structural change due to the growth of online shopping and profit margins for bricks and mortar retailers will continue to be squeezed by non-store sales and an increasingly internet savvy population. The news that the Chancellor in his Autumn budget will cap the inflation linked increase in business rates to 2% and undertake a full review of the structure of business rates is welcome news to the retail sector, according to the report. ‘However, fundamental changes need to be implemented going forward especially with consumer’s increasing preference to shop and buy online rather than in store,’ it adds. Continue reading
