New rules make property listings more transparent

When it comes to searching for a home, the devil is in the details. Here’s everything you need to know about the new material information rules when you’re buying, renting or selling a home.

If you’re searching for a home, you might’ve noticed that property listings are more detailed than ever before.

It’s no coincidence. In fact, it’s part of an industry-wide process to improve property listings and give you all the important information from the get-go.

The aim is to create a more transparent and less stressful process for everyone involved in buying, selling or renting. It’s all about helping you make informed decisions about a property.

And ultimately, it should help your sale, purchase or rental go through more smoothly, as the facts are clear and everyone knows what they’re getting into from the start.

What is ‘material information’ for a property listing?

The term ‘material information’ covers the nitty-gritty details about a property that might impact your choices around it.

National Trading Standards (NTS) defines it as “information which the average consumer needs, according to the context, to take an informed transactional decision”.

So think of it as the fine print that you really *need* to read about a property, once you’ve stopped admiring the photos or searching for the nearest pub.

It doesn’t cover information like local school ratings or proximity to a train station, as these are seen as preferences rather than essentials.

What information should you see on a property listing?

Since May 2022, estate agents need to include all unavoidable costs associated with a property when they list it for sale or to rent.

This video from NTS explains what’s changed with the material information rules and how they’re benefitting buyers, sellers and renters.

You should see the following information on all listings for properties for sale:

  • Sale price

  • Council tax band (or domestic rate in Northern Ireland)

  • Tenure (freehold, leasehold, share of leasehold, commonhold, feudal)

  • For leasehold properties: length of lease, annual ground rent, ground rent review period, annual service charge amount and service charge review period

  • For Shared Ownership properties: the percentage share being sold plus the  rent you’ll pay on the other proportion

And for rental properties, listings should include:

  • Rental rate

  • Deposit amount

  • Length of tenancy (year/month)

  • Council tax band (England, Wales and Scotland)

If you’re wondering about energy efficiency, you’re a step ahead. EPC ratings must be included on property listings under existing laws.

What if a listing is missing this information?

It’s the responsibility of estate agents to submit accurate material information on all their properties.

If they’ve missed something, NTS might get in touch with them to ask them to update or remove it.

If a property you’re interested in is missing some of the details, it’s best to contact the estate agent to ask them for more information.

There are no plans yet to remove property listings that don’t comply, but that might change in the future.

What does it mean if you’re selling your home?

The material information changes mean you’re required to provide certain details about your home and you might be liable if you misrepresent anything.

But it’s nothing to worry about.

Your estate agent will ask you for all the details they need and they’ll be responsible for adding it to the listing.

In fact, giving these details upfront will help encourage genuine enquiries. Potential buyers or tenants will be interested based on accurate information they’ve seen on the listing.

It can also help prevent a sale or rental agreement falling through at a later stage.

What material information will be shown on listings in the future?

When we reach the next steps of the process, you can also expect to see a property’s:

  • Renewable or alternative energy sources

  • Broadband options

  • Parking details

  • Locational information like flood risk

  • Rights and restrictions affecting the property

…and maybe more. The NTS is working on exactly which information will be required in Parts B and C of the process and we’ll update you as soon as they’re good to go - or watch this space for the latest updates.

Key takeaways

  • The term ‘material information’ covers the nitty-gritty details about a property that might impact your choices around it
  • Estate agents now need to include all unavoidable costs associated with a property when they list it for sale or to rent
  • There are plans for property listings to become even more detailed in the future.

 

by Blackstones

Gas and electricity: your common questions answered

Here at Uswitch, we're asked lots of questions about energy suppliers, bills and switching. Here are the answers to some of your most common queries.

Where does UK gas and electricity come from?

According to Ofgem, around half of UK gas supplies come from our own gas fields in the North Sea.

The rest is imported from a variety of sources including Norway, the Continent and across the world using liquefied natural gas (LNG).

The UK's electricity is generated from fossil fuels, nuclear, renewable and imported energy. There are more than 2,000 electricity generating stations in the UK.

Who is my gas and electricity supplier?

Check your latest energy bill to find out who supplies your gas or electricity.

If you don't have a bill to hand, find out the name of your gas or electricity supplier in this handy guide:

Who is my gas or electricity supplier?

What is dual fuel?

With a dual fuel plan you get your gas and electricity from the same energy supplier.

Dual fuel usually works out cheaper than a single fuel plan where you buy your gas and electricity from different suppliers.

This is because energy suppliers often offer discounts and reduced rates for dual fuel plans.

Plus, with a dual fuel plan, you only have to deal with one energy company if you have any queries or problems with your gas and electricity.

What is Economy 7?

Economy 7 refers to both the meter that tracks your electricity usage separately for day and night, and the tariff, which charges different rates for the day and night usage.

I've written in more detail about Economy 7 over on Uswitch:

Economy 7 meters and tariffs

What is green energy?

Green energy is electricity or gas derived from renewable sources such as hydro energy, wind energy, solar energy and biomass.

How are my gas and electricity bills calculated?

Your energy bills are calculated on the basis of how many units of energy you consume. You may also pay a standing charge.

When your meter is read, the energy company will subtract the amount shown on the previous meter reading from the most recent one to work out your bill.

If your meter isn't read, you will get an estimated bill based on your past use or a standard rate.

Units of electricity are measured in kilowatt hours. This is shown on your electricity meter.

Gas meters measure the volume of gas you used in cubic feet or cubic meters and the gas companies convert this into kilowatt hours. The price charged for each unit of energy varies according to what pricing plan or tariff you are on.

What information should my gas and electricity bills contain?

Your gas and electricity bills should show:

  • Your last meter reading (either estimated or based on your submission)

  • The amount of electricity or gas you've used in the billing period as well as an annual consumption

  • VAT charges

  • The price you're paying per kWh (the unit rate)

  • Your plan name

  • Your meter number(s)

How do I read my gas and electricity meters?

This will depend on the kind of meter you have. Check out our guide to reading your meter, and why it's important to submit regular meter readings:

How to take an energy meter reading

Who should I contact if I have a complaint about my energy supplier?

First, you need to contact your energy supplier and go through their complaints procedure.

If you need to escalate your complaint, you can get in touch with Citizen's Advice and failing all else, contact the Energy Ombudsman.

by Blackstones

First-time buyer numbers hit second highest level in 14 years

More than half of all homes bought with a mortgage in 2022 were snapped up by first-time buyers.

The number of first-time buyers hit its second highest level for 14 years in 2022.

An estimated 370,000 people got on to the property ladder last year, according to Yorkshire Building Society.

The total was the highest for more than a decade, with the exception of 2021, when 400,000 people bought their first home.

2021 was an exceptional year for the housing market, as the pandemic-induced search for space and stamp duty holiday led to elevated levels of activity.

Despite the slight year-on-year fall between 2021 and 2022, the number of first-time buyers last year was still 5% higher than in 2019, before the pandemic struck.

First-time buyers accounted for 53% of all people purchasing a property with a mortgage during the year, up from 50% in 2021 and 41% a decade ago.

Why is this happening?

Demand from first-time buyers was fuelled by a combination of high employment levels and low borrowing costs for much of the year.

Low mortgage rates helped to offset the increase in the average price paid for a home, which rose 10% from 2021 to 2022 to stand at £272,500.

The total is also likely to have been boosted by first-time buyers rushing to take advantage of the government’s Help to Buy Equity loan scheme before it closed to new applicants on 31 October 2022.

The initiative enabled people to purchase a property with just a 5% deposit, which the government topped up with a 20% equity loan that was interest-free for the first five years.

New Right to Shared Ownership scheme launched

Who does it affect?

The fact that so many people were able to purchase their first home in 2022 is not just good news for those individuals, but also for the housing market as a whole.

First-time buyers play a vital role in the market by purchasing properties at the bottom of the ladder, enabling existing homeowners to trade up it.

However, first-time buyer numbers are likely to be lower this year due to higher mortgage rates, combined with the cost-of-living squeeze.

What help is available for first-time buyers?

While the government’s Help to Buy equity loan scheme may have closed, there is still plenty of help available to those purchasing their first home.

First Homes helps first-time buyers, key workers and local people to purchase a home at a 30% discount to its market price, while Shared Ownership enables people to buy a share in a property and pay rent on the rest.

Meanwhile, the Mortgage Guarantee Scheme enables both first-time buyers and home-movers to purchase a property with just a 5% deposit.

The scheme, which has been extended by a year to run until 31 December 2023, encourages lenders to offer 95% mortgages by having the government guarantee the portion of the loan over 80%.

First-time buyers saving for a deposit can also use the Lifetime ISA, under which you can save £4,000 a year. The government then adds a 25% bonus - up to a maximum of £1,000 annually. The money must be used to either purchase a first home or for retirement.

The government has also increased the threshold at which stamp duty kicks in for first-time buyers from £300,000 to £425,000 on homes costing up to £625,000 until April 2025.

Key takeaways

  • An estimated 370,000 people stepped on to the property ladder in 2022
  • The figure was the second highest in the past 14 years, behind only 2021 when the pandemic and stamp duty holiday elevated activity levels
  • First-time buyers accounted for 53% of all people purchasing a property with a mortgage during 2022

 

by Blackstones

Latest Housing Census data: number of people renting soars by 28% 

More than one in five people now rent in the private sector, while the number of those who own a home has fallen, according to the latest Housing Census.

An estimated 5 million households – more than one in five - rented their home in the private sector in 2021, up from 3.9 million in 2011, according to the government’s latest Housing Census.

Stretched affordability, caused by strong house price growth during the past decade, is likely to be behind the increase, as first-time buyers delay stepping onto the property ladder.

There has also been a fall in the number of households who own their home, with the proportion of owner-occupiers dropping to 62.5%, down from 64.3% in 2011.

The census also found that the number of households in England and Wales has increased by 1.4 million since 2011, to stand at 24.8 million in 2021.

The number of new homes being built has failed to keep pace with this rise, contributing to the increase in house prices seen during the past 10 years.

Here’s what else the census revealed:

How many people own their own home?

Across England and Wales, the percentage of households who own their own home has fallen during the past decade.

However, due to population growth, the actual number of homeowners has increased.

In 2021, around 15.5 million households lived in a property they owned, up from 15 million in 2011.

Overall, a third of people own their property outright, while 29.7% have a mortgage or own a stake in a shared ownership property.

One in five people rent their home in the private sector and 17.1% rent it through a local council or housing association - broadly unchanged from 2011.

A lucky 33,000 households, around 0.1% of the total, live in their home rent free.

This may be because they are property guardians, have a job that comes with a home, are live-in helpers or house-sitters.

Homeownership rates were highest in the South East and South West at 67.1% and 67% respectively, and lowest in London, with the capital having the highest proportion of people who rented from both the private sector at 30% and the social sector at 23.1%.

What type of homes do people live in?

Almost 78% of people lived in houses and bungalows, while almost 22% lived flats, maisonettes or apartments.

The remaining 0.4%, around 104,000 households, lived in a caravan or other temporary structure.

The number of households living in a flat or apartment has seen the biggest increase during the past 10 years, with an additional 500,000 households living in flats in 2021, compared with 2011.

There was also an increase in the proportion of people living in detached and semi-detached houses, while the number of people living in terraced properties fell.

This is likely to be because fewer terraced properties are being built compared with other properties, according to the National House Building Council.

Unsurprisingly, people in London were most likely to live in a flat at 54%, compared with 21.6% in the South East and just 11.4% in the East Midlands.

Do people have enough space?

When recording the Housing Census, the number of 'rooms' a property has doesn't include kitchens, utility rooms, bathrooms, WCs, conservatories, halls or landings.

With that in mind, the study found that three-quarters of people lived in a home that had between three and five rooms, while 13.9% had six to eight rooms.

Just over 1% had nine or more rooms.

At the other end of the scale, one in 10 households are living in properties that have only one or two rooms.

In terms of bedrooms, 40.4% of homes had three bedrooms, with 27.1% having two bedrooms and one in five properties having four or more.

Around 11.4% of properties - the equivalent of 2.8 million households – had just one bedroom.

Despite more than one in 10 properties having just one bedroom, only 4.3% of households said their home was overcrowded and they had fewer bedrooms than they needed, although the proportion rose to 11.1% in London.

Meanwhile, seven out of 10 households reported having more bedrooms than they actually required.

How many homes have central heating?

Nearly all homes in England and Wales had central heating in 2021 at 98.5%, although this still left 367,000 households in properties without central heating.

The majority of homes were heated with mains gas at 73.8%, while 8.5% had electric heating.

Just 99,000 properties were heated using solely renewable energy, but a further 135,000 used at least one renewable energy source, alongside other sources, such as gas or electricity.

People living in the Isles of Scilly, off the coast of Cornwall, were most likely to be using at least some renewable energy at 6.1%.

By contrast, just 0.2% of homes in Blackpool used at least one renewable energy source.

How many cars do people have?

More than three-quarters of households owned a vehicle, with 41.3% households owning at least one car or van, while 26.2% owned two vehicles and 9.2% owned three or more.

But 23.3% of households did not own any cars or vans, down from 25.6% in 2011.

Unsurprisingly, the highest concentration of households that did not own a vehicle was in London at 42.1%, rising to 77.2% in the City of London.

At the other end of the scale, households in the South East and East were most likely to own two or more vehicles at 42.3% and 41.6% respectively.

Key takeaways

  • The number of people renting a home in the private sector in England and Wales has jumped by 28% during the past 10 years
  • A third of people own their property outright, while 29.7% have a mortgage or own a stake in a shared ownership property
  • The majority of people live in a house or bungalow, but the number living in flats has seen the biggest increase since 2011

 

 

 

by Blackstones

Mortgage Guarantee Scheme extended to end of 2023

The government-backed scheme to ensure 95% mortgages remain widely available will now run until December 2023.

The Mortgage Guarantee Scheme is being extended by a year to help more people with a 5% deposit to buy a home.

The government-backed scheme had been due to close at the end of 2022, but it will now run until 31 December 2023.

It has already helped more than 24,000 households to purchase a property, 85% of which were first-time buyers.

Chief Secretary to the Treasury, John Glen, said: “Extending this scheme means thousands more have the chance to benefit, and it supports the market as we navigate through these difficult times.”

Before the announcement was made, commentators had expressed concern that the end of the scheme would make it difficult for people with only a small deposit to get a mortgage, particularly as house prices in some areas are falling.

A number of lenders had recently withdrawn their mortgages for people borrowing 95% of their home’s value. But news that the scheme is being extended should boost the supply of these loans.

How does the scheme work?

The scheme encourages lenders to offer 95% mortgages by having the government guarantee the portion of the loan over 80%.

This means that if the borrower defaults on the mortgage, the government will cover up to 15% of the shortfall.

The scheme can be used by both first-time buyers and those trading up the property ladder on homes worth up to £600,000.

It can be used to purchase an existing or a new-build property, but the home must be bought with a repayment mortgage, not an interest-only one.

The Mortgage Guarantee Scheme was launched in April 2021, after lenders withdrew mortgages for people with small deposits in the face of the Covid-19 pandemic, leaving just eight 95% mortgages available on the market.

What other help is available to first-time buyers?

There are a number of government schemes to help people get on to the property ladder.

First Homes helps first-time buyers, key workers and local people to purchase a home at a 30% discount to its market price, while Shared Ownership enables people to buy a share in a property and pay rent on the rest.

First-time buyers saving for a deposit can also use the Lifetime ISA, under which you can save £4,000 a year. The government then adds a 25% bonus - up to a maximum of £1,000 annually - for free. The money must be used to either purchase a first home or for retirement.

The government has also increased the threshold at which stamp duty kicks in for first-time buyers from £300,000 to £425,000 on homes costing up to £625,000 until April 2025.

Lenders to offer mortgages on flats in high-rise buildings

There was also good news for people who own flats in high-rise buildings with cladding.

Six lenders have announced they will start accepting mortgage applications from people who live in buildings in England that are over five storeys high, or 11 metres tall, and have cladding from early next year.

The move follows new guidance from the Royal Institution of Chartered Surveyors to enable valuations on properties impacted by cladding.

But lenders will still want to see evidence that dangerous cladding will be removed, either by the building’s developer or through a government scheme.

The lenders who will consider mortgage applications from people in high-rise buildings with cladding are Barclays Bank, HSBC, Lloyds Banking Group, Nationwide Building Society, NatWest and Santander.

 

Key takeaways

  • The Mortgage Guarantee Scheme is being extended until 31 December 2023
  • The scheme helps first-time buyers and home-movers with just a 5% deposit buy a home
  • It has already helped more than 24,000 households purchase a property, 85% of which were first-time buyers

 

by Blackstones