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NALS members now 'licensed' to let


NALS Kitemark

Letting agents bearing the NALS kitemark are now fully licensed to let under the NALS scheme.

1800 letting agency offices across the UK will shortly have a new kitemark denoting that they are licensed to let property. These offices are all members of the National Approved Letting Scheme (NALS) ; previously the agents were ‘accredited members of NALS’ – now they are now ‘licensed’.

NALS Chair, Caroline Pickering, comments, “All letting agents bearing the NALS kitemark are now fully licensed operators under the NALS scheme. This is a compelling proposition for agents, landlord and tenants given that the consumer directly engages with the term ‘licensed’ and instantly connects this with protection, demonstrable quality and a benchmark of acceptable standards.”

The National Approved Letting Scheme is a Government-supported scheme for letting agents that establishes minimum levels of customer service and accounting. Members must have Professional Indemnity and Client Money Protection insurances and be members of a redress scheme such as The Property Ombudsman.

A new ‘licensed’ kitemark will be supplied to members by the end of September. Caroline Pickering says, “We all know and relate to the term ‘licensing’. It’s about making it easy for the tenants and landlords to understand what a NALS licensed firm means – essentially that’s protection. We believe it is important we ensure that the consumer is absolutely clear which agents will deliver clearly defined standards of service, this is one of the measures we are putting in place to guarantee this.”

The use of the word ‘licensed’ is another step towards the regulation of letting agents and landlords and NALS is one of several organisations working towards the stewardship of a regulatory scheme. Their ‘Framework for Licensing’ has been presented to the Housing Minister.

For more information on becoming licensed through NALS, click here.





New property auction website goes live

A new website has just been launched, with a new angle on auctioning property online. BidProp.co.uk could provide another alternative for agents who have properties they need to move quickly and it draws on many of the aspects that makes Ebay so popular.

Much in the way that a traditional auction works, BidProp invites 'motivated purchasers' to bid on a wide range of properties from studio apartments through to family homes, with auctions spanning a period of seven, 14 or 21 days.

BidProp attracts bids on properties that have a reserve price that is discounted when compared to current market value (or current asking price) and an auction starting price that is even lower than this. The website is designed for ease of use and transparency and clearly outlines how the buyer can register interest, gather more information, view a property and finally bid online.

Representing developers, construction companies and financial institutions, BidProp also operates with estate agents to complement their existing sales activities, charging no additional commission. Properties will be marketed using BidProp ’s own website alongside an estate agent’s main property portal. BidProp works only with professional sellers and does not allow ‘For Sale by Owner’ properties.

Samuel Wagner is behind the new site. He is a Swedish entrepreneur whose background is in residential development in London and he has experience of property auctions as a user.

He explained how his idea came about. "Auctions are effective for people selling their stock but I thought it wasn’t really the most efficient way," he says. "I saw it could be done online and that there was a gap in the market for a simple way for agents and professional sellers to auction properties and reach the seasoned property investors and buy-to-let investors who use traditional auctions.

“While the internet has revolutionised conventional home buying, there is one place where it has been slow to catch on and that’s property auctions. Some auction houses will allow you to see the lots on their website but details are scarce. Others will allow you to watch the auction live via the internet but you still have to bid against others in the room via the telephone. Consequently, a lot of people who might consider purchasing a home at auction are going to be put off.

"Auctions are often held in stuffy hotels in the middle of the day. Unless you are willing to take a day off work to participate in the auction, it will be difficult to make a bid. We’re aiming to make the auction process easier and more convenient for both buyers and sellers.

"By ensuring that people can log on and search for properties, enter a maximum bid, and do it all from the comfort of their own computer, we anticipate that BidProp will appeal to a wide audience. It is far less intimidating than the traditional auction room and more convenient as well."

There is no doubt it has the makings of a valuable new outlet for property sellers bringing them together with the cash-ready buyers in the market. We'll watch with interest to see how it catches the imagination of the market.

BidProp has launched in the Greater London area in September 2009 and will roll out nationally over the next two years.

www.bidprop.co.uk. Samuel Wagner, can be contacted through Debra Morrall (07769 89 4866) or Lana Wrightman (07725 951310).



Falling rents slow as property supply dwindles

A slowdown in the number of properties coming on to the rental market caused the rate at which rents decreased to ease slightly in the three months to July, says the latest RICS Lettings Survey published on 7 September.

The net balance of chartered surveyors reporting falls rather than rises in rents narrowed to 29 per cent from the historic low of 55 per cent recorded in the previous three month period. The main driver for this improvement in sentiment is a reduction in the number of respondents seeing the level of new instructions increase.

Only a net balance of 6 per cent of chartered surveyors felt that the level of new instructions was still rising rather than falling, compared with 21 percent in the previous period. This may be the first indication that the stabilisation in the residential sales market is having an impact on the number of accidental landlords entering the lettings sector.

Demand for property is still increasing, albeit at a slower pace, with 12 per cent more chartered surveyors reporting a rise rather than a fall in the number of people looking to rent, slightly lower than the 16 per cent recorded in the February to April report.

The outlook for rents is steadily improving offering some encouragement for landlords, with the rental expectations net balance reaching -6 per cent, up from the previous reading of -25 per cent and offering the best reading since the spring of 2008.

“The number of properties coming onto the rental market has slowed as the sales market has begun to stabilise. This is good news for landlords, who were coming under pressure to reduce rents as a result of oversupply. The need to respond in this way is easing and providing the housing market holds firm, the outlook for the rental market should continue to improve." Pictured: Jeremy Leaf, RICS Spokesman



Software reveals the seven deadly sins of estate agency

Ask any industry expert and they’ll tell you – it doesn’t matter whether it’s the good times or the not-so-good times, being a successful estate agent means keeping your stock fresh and moving.

With this advice in mind, innovative estate agency software company PropertyADD has announced a new tool to help agents improve the management of their property portfolio.

Managing Director, Martin Smith said, “Our most successful customers are also the most proactive. Our software already gives them the tools they need to manage their pipeline and market profile, but we wanted to offer more. We hear a lot about how useful the Rightmove Plus click through rate reports can be in setting price points, but there’s only so much data that Rightmove has access to. More varied information goes into your estate agency software and so it’s in a unique position to provide analysis.”

PropertyADD’s research identified the top seven warning signs that a property is not performing well enough to sell:

• It has been on your books the longest

• It has attracted the least viewings

• It generates a poor click-through rate on your website

• It is overpriced compared to your valuation

• It has the lowest conversion ratio of viewings to offers

• It has the lowest ratio of best offer price to asking price

• It matches the least number of applicants in your database


The new functionality provides at-a-glance listings that highlight a branch’s problem properties for each of the warning signs. This acts as a prompt for agents to improve presentation, change marketing approach or initiate price reduction negotiations.

Martin adds, “There’s a lot of talk about innovation in technology. We feel that it’s important to focus on how systems can actually improve your business. Our software and websites offer a unique level of integration and this sort of feature gives you the ammunition you need to deliver concrete benefits.”

PropertyADD estate agency software is available from just £23 per month. For more information, go to www.propertyadd.com or call 0845 388 2934.




NAEA members "want their association back!"

Following Stewart Lilly’s dramatic resignation two weeks ago from the NFOPP and NAEA boards, rumblings of discontent continue through the organisation.

Stewart, President of the NAEA 2007-8 resigned because of his concerns about the NFOPP finances and the future of the NAEA as he had seen, “the NAEA's status diluted, as members and public alike struggle sometimes with recognition of what is NFOPP-vs-NAEA.”

His comments have encouraged other members to speak out, with over 180 expressions of agreement coming from members around the country. The majority of correspondents appear to take the view that what came together for strength under an overarching organisation has now been weakened by its amalgamation.

Having expressed his gratitude for Stewart’s contribution to the NAEA, CEO Peter Bolton King declined to make any further comment. Where will this go next? Your comments please, to
The Editor, PROPERTYdrum.



Letsure launches combined rent guarantee product

Letsure has launched a new combined reference and rent guarantee insurance product to the landlord market. Rentsure Complete combines Letsure’s highly inclusive Rent Guarantee insurance with its Comprehensive reference product. The new package has been designed to deliver the highest level of cover at the lowest possible cost.

Cover provided by Rentsure Complete includes legal protection for the eviction of tenants for non-payment of rent, as well as other breaches of tenancy where there are reasonable grounds to evict.

Letsure’s in-house legal experts are able to handle the technical aspects of evicting a tenant, allowing the landlord to take on new tenants as quickly as possible. Rental payments are made for up to 11 months at 100 per cent until the eviction process is completed, with 75 per cent of the rent paid for a further two months while the landlord makes the property ready for new tenants.

Letsure Managing Director Ian Fraser (pictured) said the combined product formula was developed to allow landlords or their agents to apply for Rent Guarantee insurance and references at the same time.

He added that the reduction in administration and the increased exposure through the online referencing system, www.eletsure.com , has allowed Letsure to drive down premium costs and deliver an unprecedented level of cover for a combined policy.

Ian explains further, “Innovation is key to the successful development of services to the lettings industry and we have been working hard over the last eight months to begin expanding our range of products and services.

“The first major release was the replacement of our Emergency Assistance with the new Home Emergency Assistance to include boiler breakdown cover and the second has been the release of Rentsure Complete.

“Central to the development of Rentsure Complete was the desire to maintain the high level of cover offered on our other policies, whilst at the same time keeping administration to a minimum and lowering costs as much as possible.”

A recent survey by the National Landlords Association found that 37 per cent of landlords reported that their tenants were in arrears. Last year the legal and claims department handled over 4000 notified claims and paid out over £2.8 million on Rent Guarantee insurances.

Ian Fraser adds, “The two most common events leading to claims are unexpected unemployment and relationship breakdown, neither of which can be predicted and both of which can happen to anyone.

“This unpredictability means that even the most stringent referencing process won’t be able to prevent against every possible occurrence, so it’s important to have in place plans to mitigate the potential loss.

“Legal fees can be costly and mortgages still have to be paid, but very few landlords will have sufficient financial resources to absorb these costs. Letsure can provide insurance to cover these costs, for any type of tenant and on any type of property.”



In for a pound - posh shoppers pile in

Discount retailers have increased by 60 per cent during the last two years according to new research by the Local Data Company backed by the British Property Federation (BPF) .

Just under half of the 1,423 discount stores across Great Britain are in London and the South East and for every one discount retailer that closes, two have opened. Regions with the most discount shops include Greater London (357 outlets), the South East (250), Yorkshire & The Humber (137) and the North West (135).

Customer bases have also drastically changed. Poundland, for example, has seen a 22 per cent increase in the numbers of shoppers from the richer AB group. Traditionally, their target market has driven by females in the C2, D and E socio-economic groups.

The change has occurred because discount retailers have moved into more affluent areas such as Cambridge, Oxford, Stratford upon Avon and Tunbridge Wells.

Liz Peace, chief executive of the BPF, said: “Whatever opinions people may have about pound stores, they are growing in popularity and more importantly, generate jobs and footfall that benefits other retailers on the high street. This is good for landlords who would much rather have a discount retailer than an empty store, particularly as Gordon Brown is continuing to hurt businesses by making them pay full business rates on empty space. British Land, Land Securities, Prupim, St Modwen and Westfield all have pound store tenants.”

Ian Parish, head of retail at property agents BNP Paribas Real Estate, said:
"Discount retailers have undoubtedly seen an opportunity to acquire new stores at rents more easily viable for them when they are selling goods at lower margins than their more mainstream counterparts. Clearly, this sector is also seeing a wider customer base walking through its doors with household budgets stretched and, combined with cheaper rents, this seems to be leading them on the expansion trail. Given the current vacancy rate, I’m sure the property industry is very happy that these operators are in the expanding frame of mind."



Scotland ends right-to-buy scheme

Scotland’s First Minister Alex Salmond has outlined plans to end the right to buy for council tenants as part of its new legislative programme for 2009-10.

Mr Salmond said that the Scottish Government is committing "record investment" of £1.5 billion to social housing during the next three years, and will provide funding for 1,343 council houses.


He said, “We will introduce a Housing Bill to safeguard that housing for future generations. The Bill will end the right to buy for all new-supply social housing. And there will be plenty of such stock coming on stream because we are putting record investment into social housing – £1.5 billion over the next three years.

"This includes £644 million this year in our Affordable Housing Investment Programme. Approvals have already been made to allow work to start this financial year on 1,343 council houses supported by the first tranche of £50 million, the first central Government funding to encourage local authorities to build new housing in 30 years. This compares with just six council houses built during the four years of the last administration and, if I remember correctly all six were in Shetland. And that £50 million will support up to 3,000 jobs.”


The Scottish Government is also proposing a new law to stop bankrupt people losing their homes unnecessarily. A review of possible solutions, as part of the Debt and Family Homes Bill, will look at whether legislation could prevent creditors from taking the homes of people in debt to them.


Others in the industry welcomed the news and in particular Shelter Scotland said it will offer an alternative for those facing repossession because of the property and economic downturn. “Measures to help protect those facing re-possession is always good news. Repossession is a living nightmare for families faced with it, and must be prevented wherever possible,” said Graeme Brown, director of Shelter Scotland.



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Gordon Brown really is a man of straw!

Hayling Island Estate Agency, Millers, entered a scarecrow of Gordon Brown hunting for a 'second home!' in a local competition. It did better than Gordon may do in a general election – it came third!

Director Roy Pine said; "He is certainly a popular entry! We have had lots of people coming in and complimenting us! We added a copy of 'Politics for dummies, a poodle called Tony and details of a deceptively spacious property available soon in Downing Street!"

















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