As the company increases its expansion into offering conveyancing, The Partnership is delighted to announce their new website which will serve as a starting point for all clients and agents.
Click here
Sunday, 17 January 2010
Friday, 1 January 2010
“We've got to get some booze … we can't go on like this”
When Richard E Grant voiced his frustration about the cold in the classic film “Withnail & I”, he would have been surprised to learn that the Conservative party would, decades later, use the same phrase as part of their marketing strategy. With David Cameron making 20 foot appearances on billboards throughout the country, the party is clearly trying to exploit what they perceive as electorate frustration. However, their plans to sweep away HIPs and with them, thousands of livelihoods, ignores the progress they have brought, such as the improved delivery of searches, reduced local authority search pricing and increased commitment by sellers, all of which reduce elements of frustration in the property market. With increasing numbers of industry figures supporting a change to HIPs, the Conservatives should perhaps consider eliminating frustration elsewhere – the condition of the roads for example.
Survey highlights irrelevance of solicitor referral fees to agents
As part of the launch of our conveyancing service, we surveyed our clients to obtain their views on the legal profession when it came to conveyancing. By far the most important aspect was the ability of the solicitor, closely followed by their responsiveness. We were delighted to confirm that for most agents, the promise of a referral fee from a solicitor played a minimal part in a decision to recommend them. Indeed, it is also becoming increasingly common for agents to warn clients against poor quality conveyancers, as higher levels of service and ability are becoming vital to the sales process.
New website and iPartnership
With the start of a new year, and the launch of our conveyancing service, we have overhauled our website, with the new-look version available here:
www.thepartnershiplimited.com
As part of the redesign, and following feedback from clients, we have extended our online case tracking system, iPartnership, to enable vendors to view all their conveyancing and Home Information Pack instructions. In addition to providing access to documentation and return dates, clients are now able, like agents, to add their own comments and questions onto the system. As ever, clients may only see our and their comments, and not those added by agents.
The Partnership Knowledge Library
The past few months have resulted in an increasing number of questions from agents about legal aspects of HIPs. In particular, whether a HIP is required, whether the contents need to be refreshed and timescales. When we provide advice, we also provide documentary evidence of the law to our clients. To simplify access to this valuable information, we have extended our highly respected HIP Knowledge online system, (which, to date has answered over 36,000 queries) to include links to the legal documentation required.
www.thepartnershiplimited.com/html/faqs.html
Survey highlights irrelevance of solicitor referral fees to agents
As part of the launch of our conveyancing service, we surveyed our clients to obtain their views on the legal profession when it came to conveyancing. By far the most important aspect was the ability of the solicitor, closely followed by their responsiveness. We were delighted to confirm that for most agents, the promise of a referral fee from a solicitor played a minimal part in a decision to recommend them. Indeed, it is also becoming increasingly common for agents to warn clients against poor quality conveyancers, as higher levels of service and ability are becoming vital to the sales process.
New website and iPartnership
With the start of a new year, and the launch of our conveyancing service, we have overhauled our website, with the new-look version available here:
www.thepartnershiplimited.com
As part of the redesign, and following feedback from clients, we have extended our online case tracking system, iPartnership, to enable vendors to view all their conveyancing and Home Information Pack instructions. In addition to providing access to documentation and return dates, clients are now able, like agents, to add their own comments and questions onto the system. As ever, clients may only see our and their comments, and not those added by agents.
The Partnership Knowledge Library
The past few months have resulted in an increasing number of questions from agents about legal aspects of HIPs. In particular, whether a HIP is required, whether the contents need to be refreshed and timescales. When we provide advice, we also provide documentary evidence of the law to our clients. To simplify access to this valuable information, we have extended our highly respected HIP Knowledge online system, (which, to date has answered over 36,000 queries) to include links to the legal documentation required.
www.thepartnershiplimited.com/html/faqs.html
Tuesday, 22 December 2009
“They say we’re young and we don’t know …”
We’re starting to feel like Bill Murray’s Phil Connor in Groundhog Day, waking up to the sounds of Sonny & Cher every morning. Previously, only Labour had been accused of changing their minds over HIPs, but it seems the same story all over again, with the Conservatives exhibiting the same vagueness of direction when it comes to their future. As we describe below, the opposition are learning that anything to do with property is always more complex than it might first appear. The confident November tone of “we’ll scrap HIPs in weeks” has been replaced with a rather more subdued December mumble of “we’ll scrap them in 100 days … after a consultation … and a new piece of legislation”. Despite this repeated HIPs uncertainty, we wish all our readers a happy Christmas break in preparation for what looks like being a very busy start to 2010 and for all your support during 2009.
Conservative plans for HIPs at risk of derailing?
Despite promises from the shadow housing minister to scrap HIPs immediately upon their election, the fact that the Conservatives have acknowledged that a consultation is required is raising doubt about their ability to carry out their plans for HIPs. Notwithstanding concerns about the increase in unemployment that they will cause (estimates range from about 5,000 to 20,000) the legal minefield they are walking into is challenging. Their claim to require only secondary legislation (a statutory instrument) is problematic as the law they are trying to change is actually primary legislation. Indeed, the mechanism they were hoping to use can be likened more to a train’s “Emergency Alarm” rather than a “Power Off” button on a TV remote control – in other words, there must be concerns about striking a car stuck on a level crossing, rather than just a disliking for X-Factor.
The Partnership joins the HIP Reform Group
We have always distanced ourselves from pressure groups and trade associations, as we find their often highly-polarised positions do not match our views. However, based on the increasingly positive feedback from agents concerning elements of the HIPs, we have signed up to the HIP Reform Group who are looking at ways to improve the contents of HIPs. We share agent’s concerns about the delays caused by the lack of first day marketing, and question the wisdom of allowing variable-quality local authority searches in the HIP. We believe that the HIP Reform Group is a very positive step forward to improving the house buying process, and hopefully avoiding throwing the baby out with the Conservative’s bathwater.
Referral Fees – concerns broaden to conveyancing
Further to our concerns about the referral fees being paid by HIP providers to agents that are not declared to their clients, it appears that conveyancers are now coming under similar scrutiny by the Legal Services Consumer Panel. As we do not approve of referral fees for either our HIP service or our new conveyancing service, this increased exposure by regulatory and advisory bodies are a welcome change from the ambivalence that has appeared to be the case up until now.
Conservative plans for HIPs at risk of derailing?
Despite promises from the shadow housing minister to scrap HIPs immediately upon their election, the fact that the Conservatives have acknowledged that a consultation is required is raising doubt about their ability to carry out their plans for HIPs. Notwithstanding concerns about the increase in unemployment that they will cause (estimates range from about 5,000 to 20,000) the legal minefield they are walking into is challenging. Their claim to require only secondary legislation (a statutory instrument) is problematic as the law they are trying to change is actually primary legislation. Indeed, the mechanism they were hoping to use can be likened more to a train’s “Emergency Alarm” rather than a “Power Off” button on a TV remote control – in other words, there must be concerns about striking a car stuck on a level crossing, rather than just a disliking for X-Factor.
The Partnership joins the HIP Reform Group
We have always distanced ourselves from pressure groups and trade associations, as we find their often highly-polarised positions do not match our views. However, based on the increasingly positive feedback from agents concerning elements of the HIPs, we have signed up to the HIP Reform Group who are looking at ways to improve the contents of HIPs. We share agent’s concerns about the delays caused by the lack of first day marketing, and question the wisdom of allowing variable-quality local authority searches in the HIP. We believe that the HIP Reform Group is a very positive step forward to improving the house buying process, and hopefully avoiding throwing the baby out with the Conservative’s bathwater.
Referral Fees – concerns broaden to conveyancing
Further to our concerns about the referral fees being paid by HIP providers to agents that are not declared to their clients, it appears that conveyancers are now coming under similar scrutiny by the Legal Services Consumer Panel. As we do not approve of referral fees for either our HIP service or our new conveyancing service, this increased exposure by regulatory and advisory bodies are a welcome change from the ambivalence that has appeared to be the case up until now.
Tuesday, 17 November 2009
“Buy cheap … buy twice … or not at all”
Most buyers are concerned about the price of conveyancing – they want to pay the absolute minimum but obviously want to receive excellent service. However, in a recent case we found that where a company quoted a low price, this can be very misleading. A client was quoted £650 to buy a property, but after a couple of months of being drip-fed individual documents, they were astonished to receive a bill of more than double their initial quote. Not only had the firm charged for “additional” services such as filling in tax forms and working with the lender, but had made the process so difficult, that the buyer decided to reconsider the purchase. We believe this type of sharp practice should be stamped out – indeed, our new conveyancing service, like our HIPs, uses fixed pricing to avoid such nasty surprises for our clients.
Quiet marketing – a reminder
At this time of year, many sellers are considering putting their property on the market in the new year and are instructing estate agents to start preparing particulars. We have noticed a trend where we have been asked by the agent to produce a HIP and the client has tried to convince us that one is not needed, as they are “quietly marketing” the property. There is no such exemption – if an agent or seller tells a prospective buyer about a property, irrespective of whether particulars have been produced, this is considered marketing and a HIP is required.
Trading Standards becoming more active
For those that think that HIPs are not being policed, over the past few weeks it has become very clear that trading standards officers are becoming more proactive regarding non-compliance amongst agents. We came across one situation where an inspector walked into an office and demanded to see HIP for a property that was being advertised in the window. When it could not be shown, they immediately started proceedings. The other scenario was a “sting” operation, with a couple convincing an agent to start marketing a property without a HIP. They turned out to be trading standards officers who proceeded to issue a notice against the agent.
More legal problems ahead?
Following on from our piece about possible legal problems facing a potential Conservative government wanting to suspend HIPs, further research has shown it may be more difficult than first thought. Whilst The Housing Act provides for the suspension of HIPs, evidence from Hansard reveals this was to be used only under “extraordinary circumstances”. It is questionable whether a political decision could be deemed to be “extraordinary circumstances” which appears to leave the way open for a legal challenge.
Quiet marketing – a reminder
At this time of year, many sellers are considering putting their property on the market in the new year and are instructing estate agents to start preparing particulars. We have noticed a trend where we have been asked by the agent to produce a HIP and the client has tried to convince us that one is not needed, as they are “quietly marketing” the property. There is no such exemption – if an agent or seller tells a prospective buyer about a property, irrespective of whether particulars have been produced, this is considered marketing and a HIP is required.
Trading Standards becoming more active
For those that think that HIPs are not being policed, over the past few weeks it has become very clear that trading standards officers are becoming more proactive regarding non-compliance amongst agents. We came across one situation where an inspector walked into an office and demanded to see HIP for a property that was being advertised in the window. When it could not be shown, they immediately started proceedings. The other scenario was a “sting” operation, with a couple convincing an agent to start marketing a property without a HIP. They turned out to be trading standards officers who proceeded to issue a notice against the agent.
More legal problems ahead?
Following on from our piece about possible legal problems facing a potential Conservative government wanting to suspend HIPs, further research has shown it may be more difficult than first thought. Whilst The Housing Act provides for the suspension of HIPs, evidence from Hansard reveals this was to be used only under “extraordinary circumstances”. It is questionable whether a political decision could be deemed to be “extraordinary circumstances” which appears to leave the way open for a legal challenge.
Monday, 19 October 2009
“Move along please … there's plenty more room upstairs”
Most people in the property industry are aware that the Conservatives has promised to scrap HIPs in the same manner in which Boris Johnson promised to scrap the bendy buses in London. Whilst we don’t doubt the commitment of either to their cause, some promises are sometimes more politically expedient than practically appropriate. With growing evidence from our agents that whilst HIPs are by no means perfect, (especially the first day marketing restriction) they have introduced some improvements into the selling process, and as such suspension risks throwing the baby out with the bathwater. In addition, the Conservatives’ promise to move the delivery of the Energy Performance Certificate (EPC) to the end of the conveyancing process would require a change in the law that demands that energy charts are displayed on property particulars. Whilst people may worry that some bendy buses catch fire and cause traffic congestion, like HIPs, getting rid of them may not be quite as simple as politicians would like.
Low Rating Energy Certificates – 1 and 1’s
When a property scores extremely poorly in an energy inspection, sometimes no potential improvements are shown on the EPC, so the potential rating remains the same as the actual rating. Whilst this appears illogical, the explanation is as follows :
The scale used on an EPC ranges from 1 to 100, the result of an inverse calculation of a figure called the “Energy Cost Factor” (ECF). If the ECF goes above 10, the EPC rating will be below zero, but this has to be shown as a 1 at a minimum. Only recommendations that improve the energy efficiency of a property by more than 1 point can be included on a report. Therefore, if the improvement still means the ECF is higher than 10, the EPC rating will remain as 1, and hence the recommendations cannot be included and no potential improvements can apparently be made to an inefficient property.
Energy Recommendations
Today. a major change concerning recommendations for improving the energy efficiency ratings of properties has been made. Previously, some energy assessors have been criticised for including recommendations such as the installation of solar panels and replacement double glazing on listed buildings, which of course, their status does not allow. In the past, more sensitive energy assessors removed such recommendations that they felt were inappropriate. However, from today, as part of the standardisation process, listed building status or a property in a conservation area are not sufficient grounds in their own right to suppress a recommendation.
The Challenge of Regulation
A search provider emailed us last week accusing our search supplier (one of their competitors) of not being legally compliant. Although the allegations proved to be totally unproven, they appeared to be based on an interpretation of a guidance note published by a regulatory body. We have recently come across two companies that subscribed to this same regulatory organisation - one company thought a second title was just a referred document and the other proved incapable of producing a search for an unregistered property. We remain extremely wary of any company that uses the blunt instrument of apparent regulation for competitive advantage.
Low Rating Energy Certificates – 1 and 1’s
When a property scores extremely poorly in an energy inspection, sometimes no potential improvements are shown on the EPC, so the potential rating remains the same as the actual rating. Whilst this appears illogical, the explanation is as follows :
The scale used on an EPC ranges from 1 to 100, the result of an inverse calculation of a figure called the “Energy Cost Factor” (ECF). If the ECF goes above 10, the EPC rating will be below zero, but this has to be shown as a 1 at a minimum. Only recommendations that improve the energy efficiency of a property by more than 1 point can be included on a report. Therefore, if the improvement still means the ECF is higher than 10, the EPC rating will remain as 1, and hence the recommendations cannot be included and no potential improvements can apparently be made to an inefficient property.
Energy Recommendations
Today. a major change concerning recommendations for improving the energy efficiency ratings of properties has been made. Previously, some energy assessors have been criticised for including recommendations such as the installation of solar panels and replacement double glazing on listed buildings, which of course, their status does not allow. In the past, more sensitive energy assessors removed such recommendations that they felt were inappropriate. However, from today, as part of the standardisation process, listed building status or a property in a conservation area are not sufficient grounds in their own right to suppress a recommendation.
The Challenge of Regulation
A search provider emailed us last week accusing our search supplier (one of their competitors) of not being legally compliant. Although the allegations proved to be totally unproven, they appeared to be based on an interpretation of a guidance note published by a regulatory body. We have recently come across two companies that subscribed to this same regulatory organisation - one company thought a second title was just a referred document and the other proved incapable of producing a search for an unregistered property. We remain extremely wary of any company that uses the blunt instrument of apparent regulation for competitive advantage.
Monday, 21 September 2009
''Smoke, mirrors and foundations of sand.''
In the wild-west that is the HIP industry, we’re seeing tumbleweeds where before there were companies in their hundreds. We were always intrigued by cowboy organisations charging low prices, especially those that didn’t increase them to take into account the increase in search costs in April. Several medium-sized providers have closed their operations in the past few weeks. A large provider has drastically increased the price it charges for refreshing searches in a HIP, quoting £250 initially, increasing to £350 in a subsequent call. Another provider that cut its back-office staff, has been asking DEAs to collect payments for them at the property. It is clear that even those companies that are managing to survive are having to resort to increasingly desperate measures with the corresponding impact on service levels.
Energy Savings Trust
Since the introduction of Energy Performance Certificates, it has frequently been suggested that there was an ulterior motive for the use of the data that was being collected. However, until recently there was no evidence that anyone was allowed to access this data containing details of insulation, estimated fuel costs, property sizes and types of heating systems. However, over the summer, a regulation was passed that enabled the Energy Savings Trust to access this data, which was followed by a recommendation by the same organisation that houses with a low rating should not be able to be marketed until they were made more energy efficient. We await further details from this organisation about how this data will be used.
Kickbacks – the issue widens
We were pleased to see that Which? Magazine had picked up on the concerns about consumers being overcharged for HIP services. Ironically, the cheapest supplier on the market was later found to be withholding providing a HIP to a client because they refused to take up their conveyancing services. However, although Which? suggested that some agents are marking up HIP prices, it also mentioned our concerns about agents taking kickbacks from providers, and not disclosing them.
The Partnership expands its legal expertise
We are delighted to announce that two practising solicitors have joined The Partnership, further strengthening our legal capabilities and expertise. Guy Crowther has a background in probate and Claire Speller has worked for several major firms specialising in residential conveyancing, in particular leasehold transactions. These two important additions gives the company increased depth in legal matters for the future.
Energy Savings Trust
Since the introduction of Energy Performance Certificates, it has frequently been suggested that there was an ulterior motive for the use of the data that was being collected. However, until recently there was no evidence that anyone was allowed to access this data containing details of insulation, estimated fuel costs, property sizes and types of heating systems. However, over the summer, a regulation was passed that enabled the Energy Savings Trust to access this data, which was followed by a recommendation by the same organisation that houses with a low rating should not be able to be marketed until they were made more energy efficient. We await further details from this organisation about how this data will be used.
Kickbacks – the issue widens
We were pleased to see that Which? Magazine had picked up on the concerns about consumers being overcharged for HIP services. Ironically, the cheapest supplier on the market was later found to be withholding providing a HIP to a client because they refused to take up their conveyancing services. However, although Which? suggested that some agents are marking up HIP prices, it also mentioned our concerns about agents taking kickbacks from providers, and not disclosing them.
The Partnership expands its legal expertise
We are delighted to announce that two practising solicitors have joined The Partnership, further strengthening our legal capabilities and expertise. Guy Crowther has a background in probate and Claire Speller has worked for several major firms specialising in residential conveyancing, in particular leasehold transactions. These two important additions gives the company increased depth in legal matters for the future.
Wednesday, 8 July 2009
“Ignorance is definitely not terribly blissful”
Despite the imminent second anniversary of Home Information Packs (HIPs), remarkably, most sellers we speak to are still in the dark about their content and use. Most think a HIP is just an Energy Performance Certificate and often are concerned that their property will “fail”. Whilst we take the time and effort to explain to our clients about HIPs, (including the potential pitfalls of the use of personal local authority searches) feedback from the market is that the majority of HIP providers simply call to take payment by credit card, using call-centre staff that have neither the time nor the expertise to explain about the content of HIPs. Although industry insiders demand that “the government should do a better job informing the public” it is up to the HIP providers, i.e. those companies that are being paid to offer a service, to explain to clients what it is they are paying for, rather than just allowing them to blindly accept HIPs as “just another property stealth tax”
Backhanders
Last month, The Partnership was asked to comment on an investigation carried out by Channel 4 news which exposed the practice of HIP providers paying estate agents “commissions” when work was passed to them. Commentators dismissed this as merely a function of the market, using the assumption that estate agents were “reselling” HIPs and just adding on a markup for their own work and efforts. However, in reality, most payments are made directly to the HIP companies, who make no mention of the money that they are paying to the agent – a totally different scenario than a wholeseller/retailer agreement. The Partnership does not indulge in practices that we consider to be highly questionable at best, and at their most blatant, simple bribery.
Floorplans for £10
We were recently informed by a customer that they were considering another supplier for their HIPs, because they were offering floorplans for their properties for an additional £10 cost on top of the HIP. Since the introduction of HIPs, the use of low-cost floorplans has taken off, with some agents seeing these as a simple way to cut costs. Even with the dubious economics of the HIP industry, the ability of someone to do an accurate floorplan for £10 must be questioned. Those companies using professional floorplanners know that the production of a reliable floorplan is vital, and there are many cases where companies have been successfully sued where floorplans on property particulars are incorrect.
Search turnaround times
The nightmare that is local authority search return times is slowly starting to improve. Timescales have lengthened considerably since April, due to the need for personal search companies to obtain complete documentation, including building control notices, data that cheap search providers never used to bother trying to obtain. With some local authorities having undergone major restructuring in April, this has caused significant delays to both personal searches and the more reliable, official local authority searches. According to data obtained by The Partnership, the average turnaround time for local authority searches has come down to about 13 working days. This figure is expected to improve to about 10 days by the Autumn.
The Partnership moves to new offices
Due to significant business growth, we have moved to new, larger offices in Guildford - these details are as follows:
4 Wey Court
Mary Road
Guildford
Surrey
GU1 4QU
Backhanders
Last month, The Partnership was asked to comment on an investigation carried out by Channel 4 news which exposed the practice of HIP providers paying estate agents “commissions” when work was passed to them. Commentators dismissed this as merely a function of the market, using the assumption that estate agents were “reselling” HIPs and just adding on a markup for their own work and efforts. However, in reality, most payments are made directly to the HIP companies, who make no mention of the money that they are paying to the agent – a totally different scenario than a wholeseller/retailer agreement. The Partnership does not indulge in practices that we consider to be highly questionable at best, and at their most blatant, simple bribery.
Floorplans for £10
We were recently informed by a customer that they were considering another supplier for their HIPs, because they were offering floorplans for their properties for an additional £10 cost on top of the HIP. Since the introduction of HIPs, the use of low-cost floorplans has taken off, with some agents seeing these as a simple way to cut costs. Even with the dubious economics of the HIP industry, the ability of someone to do an accurate floorplan for £10 must be questioned. Those companies using professional floorplanners know that the production of a reliable floorplan is vital, and there are many cases where companies have been successfully sued where floorplans on property particulars are incorrect.
Search turnaround times
The nightmare that is local authority search return times is slowly starting to improve. Timescales have lengthened considerably since April, due to the need for personal search companies to obtain complete documentation, including building control notices, data that cheap search providers never used to bother trying to obtain. With some local authorities having undergone major restructuring in April, this has caused significant delays to both personal searches and the more reliable, official local authority searches. According to data obtained by The Partnership, the average turnaround time for local authority searches has come down to about 13 working days. This figure is expected to improve to about 10 days by the Autumn.
The Partnership moves to new offices
Due to significant business growth, we have moved to new, larger offices in Guildford - these details are as follows:
4 Wey Court
Mary Road
Guildford
Surrey
GU1 4QU
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