The market, the consumer and the search Code the search Code www.designsonproperty.co.uk
Agenda • What’s happening in the property market now? • Future trends • Consumer protection – What do people need? – What do people need? • How does the Search Code help to reassure consumers?
What’s happening in the economy now? economy now?
The economy
How property reacts to economic conditions economic conditions
Property prices
Demand vs supply drives house prices
Reality is it’s volume which counts Source: Savills
Will Help to Buy, Help? • Help to buy 1 – Approximately 15,00 new build properties to date – Potential is up to 30 to 45,000 per annum • Help to buy 2 – Savills ran the numbers, estimate 400,000 sales versus government numbers of 500,000 – Extra 130,000 per year, 10-15% sales
Potential issues for Search Companies Search Companies
Consider impact of key trends Massive increase in cash sales: currently third, increase to 50% or more?
Target market clarity • Is it third party organisations? – If so, how well do they sell to your end client? • How do you raise awareness of the need for • How do you raise awareness of the need for different searches? – What do you do individually as a company with buyers? – Do you do joint PR/Marketing with third parties?
Market summary • Looks like the market is picking up – especially volume, even if prices aren’t rising • May not return to pre-credit crunch levels • Worth considering impact of future trends • Worth considering impact of future trends
Consumer protection
Property La La Land Source: http://www.simpsonstrivia.com.ar/teletubbies-pictures.htm
Who is the consumer/public? • First time buyers • People trading up • People trading down • Property investors • Property investors – Traders – Buy to let • Tenants
Real world of property • People want to avoid nasty surprises “ Retired police officer is facing financial ruin after dream home she bought at auction is left teetering on a cliff edge by landslide” Daily Mail
Avoid nasty surprises • New build home story from Independent:- A recent report from home insurer LV= revealed that more than one in 10 new homes built on brownfield sites have than one in 10 new homes built on brownfield sites have suffered problems such as flooding, contamination, poor drainage and sewage problems as a result of the land they are built on. http://www.independent.co.uk/money/mortgages/buyers- beware-of-newbuild-home-headaches-2277291.html
Chancel repairs After inheriting the property, a 20-year legal battle with the Church over liability for repair work has cost Andrew work has cost Andrew and Gail Wallbank £600,000, plus years of endless worry http://www.farmersguardian.com/home/rural-life/couple-look-to-the-future-after- two-year-legal-battle-with-the-church/29408.article
One small research survey shows fear connected with searches One in four of UK homeowners surveyed worried about the potential impact of disruptive neighbours or the council granting planning permission to build or the council granting planning permission to build something detrimental nearby Broadgate Mainland BLP
Various ways of protecting the consumer • Making sure people have searches required • Ensuring the searches are carried out properly – Having systems in place to pick up errors • Having great compliance – And someone with the training and time to make sure searches are compliant • Understanding who pays out what to whom:- • Understanding who pays out what to whom:- – The Property Ombudsman – Search insurances – Professional indemnity insurance • Taking opportunities to create awareness – Industry and consumers
The Search Code
The principles of the Search Code Provides protection for homebuyers, sellers, estate agents, • conveyancers and mortgage lenders who rely on the information included in property search reports undertaken by subscribers on residential and commercial property within the United Kingdom Sets minimum standards which organisations compiling and selling • search reports have to meet Promotes the best practice and quality standards within the industry Promotes the best practice and quality standards within the industry • • for the benefit of consumers and property professionals Enables consumers and property professionals to have confidence in • organisations which subscribe to the code, their products and services By being members and adhering to the code makes me feel that you actually care
Key elements of the Search Code • It gives clear guidance of a:- – Good company – Poor company • The PCCB can protect the good companies by discrediting the poor ones discrediting the poor ones – You have ‘Dave and Denis’ to help adhere to the Code • Third party complaints procedure – This is critical to consumers
Key elements of the Search Code • Have to be running a good business – Purchase information from legitimate sources – Good enough to afford investment in compliance – Which means you are able and care about training – Keep up to date with changes which – Keep up to date with changes which affect how searches work • But, if something does go wrong – Adequate insurance to cover the client/consumer
Summary • The Market:- – Not great volume wise, but improving – www.designsonproperty.co.uk – www.propertychecklists.co.uk • Consumer protection:- • Consumer protection:- – Property accounts for 40% of people’s wealth (Halifax) • The Search Code – Essential to provide quality information from great companies
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