News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the June / July 1999 issue RPI news archive

In brief - June / July 1999

The Office of Fair Trading is to investigate claims that estate agents are putting undue pressure on sellers to sign sole agency agreements. It is claimed that some have been insisting such agreements are a requirement of the law. They are not although if buyers sign sole agency agreements they must stick by them.

Fixed rate loans continued to fall in popularity in March although still accounted for 38 per cent of new lending, according to the Council of Mortgage Lenders. The average interest rate on new variable rate mortgages in March was 5.86 per cent, and on fixed rate mortgages 5.68 per cent.

Proposals for a voluntary quality mark scheme for builders have been set out in an interim report from the Cowboy Builders Working Group. 'I am sure it is right to proceed on a voluntary basis not only because the working group believes that such a scheme can be made to work effectively but also because there is no real prospect of legislative time in the near future', said Construction Minister Nick Raynsford. 'But I want to make it clear that if a voluntary scheme fails to deliver the results we anticipate, we would be prepared to look at statutory measures'.

A new method of calculating energy efficiency ratings for houses as from 1 July is included in the latest edition of The Government's standard assessment procedure (SAP) for energy rating of dwellings - 1998. Changes include a new optional method of calculating boiler seasonal efficiency.

Lenders and intermediates are now obliged to give prospective mortgage customers a copy of You and your mortgage a summary of the Mortgage code which can be used as an information checklist and which sets out the three levels of service available under the code.

Property consultant FPD - Savills is reminding property owners that new garden fences and walls may well require planning permission. This is the case where the fence is over two metres high, or where it abuts a highway, over one metre. Hedges require no consent although this may change as a result of the work of the Leylandii working group which is looking at the nuisance caused by planting fast growing hedges.

'Investors who venture into Scotland's private rental market are now enjoying some of the highest returns in the UK, with net yields of up to 10 per cent', according to Quality Street Rental Investment Solutions. Highest yields are currently being earned in Glasgow, it said.
 

other artilces from the June / July 1999 issue

• Bottom line reality
• In brief
• New calls for reform of housing benefit
• Most shared houses will be regulated
• Landlord is unable to recover costs
• Manchester has lowest prices