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Valuation Request

people wanting to buy

The number of people wanting to buy a house has fallen to the lowest level since mid-2008 amid post-referendum uncertainty, according to the Royal Institution of Chartered Surveyors.
In its residential market survey, which has been carried out since the referendum, 27pc more surveyors polled said that house prices would fall rather than rise across the country in the next three months.
That dip in prices is expected to remain in London and the east of England for the next 12 months. This fall is not expected to be in the long term, however: those polled said that prices are still expected to rise over the next five years across the country, by an average of 14pc

Rent rises are 'inevitable' if landlords are going to stay in business

Rent rises are 'inevitable' if landlords are going to stay in business following the tax clampdown on buy-to-let, experts have warned.
The Residential Landlords Association said the tax changes being applied on investing in property will see landlords' profits 'wiped out' in some cases.
It means landlords will have no option but to recoup their losses through higher rents, with tenants ultimately paying the price of the Government's 'unfair tax-grab', the association said.

A recent survey of the association's members found that 84 per cent are likely to consider increasing rents following the Chancellor's withdrawal of the tax relief that landlords can claim.
The relief will be hacked back from next April until it is removed altogether and replaced with a 20 per cent tax credit against mortgage interest.

Campaigners argue that the changes are unfair as the current system of being able to deduct finance costs is in-line with general business taxation principles, where tax is paid on profits.
Under the new tax system, landlords will end up part paying tax on revenue.

Discounting through negotiation was already rife in London’s housing market

Discounting through negotiation was already rife in London’s housing market but has stepped up a gear since the EU referendum, with vendors accepting they must drop asking prices to offload homes.
Meanwhile, nervous buyers have become more demanding, wanting deals that will insulate them from possible future price falls as the UK’s separation from the EU takes shape. 
Paul Mahoney, managing director of property advisers Nova Financial, says: “With the uncertainty in the market many buyers want a sweetener to make them feel more comfortable with making a transaction. Buyers should use this uncertainty and the slowdown in transactions to their advantage.”
Price cuts have been spreading across the market over the past two years, largely thanks to increases in stamp duty at the top end, and tax increases for buy-to-let investors and a generally tougher mortgage lending climate in the mainstream market.
Ten ways to talk down the asking price
Do your research on property prices in the area and get hard evidence to back up a discount request. 
Find out how long the property has been on the market. The longer it has lingered, the more likely a deal.
Never admit your true budget to agents — inevitably they will want to push you to its limits. 
Don’t say you are in a rush to buy — it weakens your position.
Really cheeky offers just annoy everyone. Stay within 10-20 per cent of the asking price.
You will be more appealing if you are a cash buyer, chain free or have a mortgage in place.
Always go for a discount on new build at slow times of the year such as summer holidays and Christmas,  when builders like to unload stock in the run-up to their financial year.
If you can’t get money off, ask for freebies — for example, if the vendor will throw in carpets, shelving, expensive light fittings, garden furniture etc. With developers, discuss rental guarantees, stamp duty payments, legal fees and furniture pack inclusions.
Don’t panic if the agent says there are other keen buyers — it’s probably not true.
A poor survey can be a negotiating point. Suggest splitting all the cost of repairs 50/50.
 Average discount on the original asking price of a UK property was over £25,000 — up nearly £4,000 compared with January.
But even if a property has already been discounted it would be a mistake to assume it is a steal — it may simply have been overpriced in the first place. “The Brexit result has been the catalyst for what is actually a correction in the market,” explains Anthony Pears, sales manager at Lurot Brand.
“Vendors who do now need to sell are more likely to cast their optimism ;aside and ask a more enticing and realistic asking price.”
What the market will do over the next year or two is anyone’s guess. Buyers will naturally want to avoid buying at the top and tumbling into negative equity.
But if significant numbers succeed in driving down prices, particularly of new build, the market will also fall.
The only major player so far to estimate how much prices will fall in Brexit’s wake is KPMG. It forecasts nationwide drops of five per cent, and a little more in London.
Most agents advocate calm. “We don’t expect huge falls but slower price growth and fewer transactions in places where prices were most stretched,” says Jeremy Leaf, of Jeremy Leaf & Co estate agents. “Lack of stock is supporting prices even if demand weakens.”

Councils are buying properties outside their boroughs

Councils are buying properties outside their boroughs to house their homeless because of rising prices in the capital, research by trade magazine Inside Housing has found.
Freedom of Information Act requests found seven boroughs had bought 168 properties over the last three years out of their areas.
Westminster bought the most properties (81) in places including Barking, Redbridge, Haringey, Romford, Chadwell Heath, Greenwich, East Ham, Newham and Enfield.
Wandsworth and Harrow had each bought 23 homes outside their boroughs in the period in areas such as Croydon, Mole Valley, Watford and Ealing.
A spokesperson for Harrow Council told Inside Housing that it has more than 300 families in emergency accommodation, which may have to move to the Home Counties because of “the London housing crisis and escalating prices of property”.
Boroughs including Enfield and Brent said they planned to buy hundreds more in the coming years.
Cllr Ahmet Oykener, Enfield Council’s cabinet member for housing and housing regeneration, said: “We have found other London boroughs placing families in temporary accommodation in Enfield because it is cheaper than in their own borough.