Interest rates rise again but mortgage rates keep falling

Despite increases to the cost of borrowing, fixed rate mortgages are continuing to come down, falling by 0.35% for two-year deals and by 0.43% for five-year ones.

The Bank of England has increased interest rates by 0.5% to 4%, the highest level since October 2008.

It was the 10th consecutive meeting at which the Monetary Policy Committee (MPC) has hiked the official cost of borrowing, as it continues to try to bring down high inflation.

The latest increase adds a further £60 a month to repayments for homeowners with a £200,000 mortgage.

People with variable rate mortgages have now seen their monthly mortgage costs jump by £440 since the MPC first started to raise interest rates from 0.1% in December 2021.

An estimated 850,000 homeowners have a tracker mortgage, and 1.1 million are on their lender’s standard variable rate – both of which move up and down in line with changes made to the Bank Rate.

But despite increases to the cost of borrowing, the average rate charged on new fixed rate mortgages has continued to come down, falling by 0.35% for two-year deals and by 0.43% for five-year ones, offering hope to those who need to remortgage in the near future.

There was further good news for borrowers, with the tone of the minutes that accompany the MPC’s interest rate announcement suggesting the Bank Rate could be close to peaking.

There was a notable shift in language, with the MPC saying there “would” be further increases to interest rates “if” there was evidence of persistent inflationary pressures.

This contrasts with its previous statements that it would continue to “respond forcefully” and “take the actions necessary” to get inflation back down to its target.

Two members of the nine-strong MPC also again voted to leave rates unchanged.

Why has the Bank Rate been increased?

The MPC began increasing interest rates from their record low in December 2021 in a bid to bring down inflation.

Despite increasing the Bank Rate by 3.9%, inflation, which measures the rate at which the cost of goods and services increases, has remained stubbornly high.

The latest figures show it stood at 10.5% in December, down only slightly from November’s figure of 10.7%, and still well above the MPC’s target of 2%.

Part of the problem for the MPC is that inflation is being stoked by external factors, such as the conflict in Ukraine which has pushed energy prices higher.

But inflation does now appear to be on a downward trend, and is expected to fall to around 4% by the end of this year.

In further good news, the MPC also said it expects the UK’s recession to be less severe than previously thought.

It is now predicting that it will last for only one year, rather than two, with economic growth contracting by just 1%, rather than the 2.9% previously predicted.

Economists now expect the Bank Rate to peak at 4.25% later this year, following the MPC’s latest announcement.

What should I do about my mortgage?

Despite interest rates increasing by 1% since the end of October, the cost of fixed rate mortgages has been moving in the opposite direction, falling by just over 0.9% during the same period.

Interest charged on fixed rate mortgages shot up at the end of September last year in the wake of then Chancellor Kwasi Kwarteng’s mini-Budget.

It triggered a sharp rise in government borrowing costs - which influences the rate at which lenders borrow money for fixed rate mortgages.

But they have been easing downwards since Jeremy Hunt took over as Chancellor, and this trend is expected to continue in the coming months.

After hitting highs of around 6%, mortgage rates for new business are now generally below 5%, and they are expected to remain in the 4% to 5% range for most of 2023.

There is also good news if you are planning to remortgage but are worried about passing your lender’s affordability test due to the rising cost of living.

Following a meeting with the government and the regulator, lenders have agreed to allow customers who are up to date with their payments to switch to a new mortgage deal without having to do another affordability test.

If you are on a fixed rate mortgage

More than 1.4 million homeowners are on fixed rate mortgages that are due to expire this year.

If your deal is due to end soon, you should start looking around for a new rate now, as lenders will allow you to book on to a new rate up to six months before your existing one ends.

But if you see a deal that you like the look of, you need to be prepared to move fast, as the average mortgage is currently only available for 15 days before lenders withdraw it.

The average interest rate charged on a two-year fixed rate deal is currently 5.44%, while on a five-year one it is 5.2%.

But it is important to remember that these rates are just averages, and best buy deals for people with large equity stakes in their property are available for below 4%.

If your current mortgage deal is not due to end soon, you don’t have to do anything, as the rate you are paying now will stay the same until the end of your product term, even if interest rates increase further.

If you are on a standard variable rate (SVR) mortgage

The interest charged on SVRs has been steadily increasing since December 2021, as rates on these automatically move up and down in line with changes to the Bank Rate.

The average interest rate charged on an SVR was already 6.84% before today’s announcement, and it is likely to rise above 7% following the latest hike.

As a result, you are likely to want to look into remortgaging on to a more competitive rate.

Remortgaging from an SVR of 6.84% to an average two-year fixed rate deal of 5.44% would save you nearly £175 per month, based on a £200,000 mortgage.

If you are on a tracker mortgage

If you are on a tracker mortgage, your rate will automatically increase following today’s interest rate rise.

Remortgaging to a fixed rate deal would protect you from any further interest rate increases, but economists are now predicting that the Bank Rate is close to peaking.

If you stay on your current deal, the cost of fixed rate mortgages may have fallen further by the time you need to remortgage.

When making a decision, it is important to think about how much slack you have in your budget to afford your mortgage repayments if the Bank Rate rises by more than is currently expected.

What can I do if I’m struggling with my mortgage?

If you are struggling with your mortgage payments, there are two main ways you can make them more affordable.

The first is to increase your mortgage term.

For example, monthly repayments on a £200,000 mortgage on a fixed rate of 6% would be £1,450 if you are repaying it over 20 years.

But monthly repayments fall to £1,210 if you increase the term to 30 years. They fall even further to £1,150 if you repay the mortgage over 35 years.

If you do decide to go down this route, it is important to understand that although it will reduce your monthly repayments in the short term, you will end up paying a lot more interest over the entire life of your mortgage.

The second option is to talk to your lender about being put on to an interest-only mortgage for a period of time.

Only paying interest significantly reduces your monthly payments, although it does mean that the amount you owe is not being reduced, so you will need to resume full repayments at some point.

If you are really struggling, you can ask your lender for a short-term payment holiday. This enables you to take a break from making repayments, with the interest portion of your monthly payment added to your outstanding mortgage debt.

If you think you may run into difficulties, it is important to contact your lender as soon as possible.

Lenders are obliged by the regulator to work with customers who are struggling with mortgage repayments to find a solution, and they can only repossess a home as a last resort.

But options become much more limited if you have already missed a payment.

Key takeaways

• The Bank of England has increased interest rates by 0.5% to 4%, the highest level since October 2008
• Yet mortgage rates are continuing to fall, and economists believe the Bank Rate is now close to peaking
• Nearly 2 million homeowners with variable rate mortgages will see their monthly repayments rise by a further £60 a month, based on a £200,000 loan

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by Blackstones

Energy efficient homes holding their value in market slowdown

Potential buyers are showing a greater interest in homes with high energy efficiency ratings.

Energy efficient homes are outperforming other properties in the current housing market.

Six out of 10 estate agents say homes with high energy efficiency ratings are holding their value despite the overall market slowdown, according to the Royal Institution of Chartered Surveyors.

At the same time, 40% said they are seeing more interest from potential buyers in energy efficient homes.

And 41% said sellers are attaching a price premium to their home if it has a high energy efficiency rating.

Mairead Carroll, senior specialist in land and property standards at RICS, said:

“It will be fascinating to see how important energy efficiency becomes to buyers over the next 12 months.”

The survey reflects our own findings that buyers are becoming more value-conscious due to higher mortgage rates, inflation and the cost-of-living squeeze.

The average household has seen its gas and electricity bill double from £1,277 per year at the start of 2022 to £2,500 now.

The government’s Energy Price Guarantee has kept bills lower than they might otherwise be. It limits the amount suppliers can charge per unit of gas or electricity.

But the guarantee will change in April and the average annual bill for gas and electricity is expected jump to around £3,000.

These rising costs have led to home buyers increasingly factoring in the cost of heating a home to their moving decisions.

The growing appeal of energy efficient homes isn’t just because buyers want to save money on their bills.

Banks and building societies are also factoring in energy costs when assessing whether people can afford a mortgage.

If a lender thinks your budget is too tight to cope with further increases to energy costs, they may only be prepared to lend you a lower amount.

First-time buyers and those on lower incomes are most likely to be impacted.

On the other hand, if you can show lenders that your home has a high energy efficiency rating - and so it costs less to run and heat - they’re less likely to be concerned about your impact to manage future gas and electricity price rises.

Properties are given an Energy Performance Certificate (EPC) which rates their energy efficiency on a scale from A to G.

Find out your EPC rating - GOV.UK

A is the most efficient EPC rating and G is the least efficient. If you’re selling or renting a property, it’s a legal requirement to have an up-to-date EPC rating.

While 80% of new-build homes have an EPC rating of A or B, only 3% of older properties have a rating this high.

There are a number of steps you can take to make your property more energy efficient.

Insulating your loft will prevent up to 25% of heating being lost through the roof, while installing cavity wall insulation will help to stop 35% of heat being lost.

Installing double or triple glazed windows or replacing an old boiler with a new energy efficient one will also make your home cheaper to run.

On a smaller scale, using energy efficient light bulbs and sealing any gaps letting in draughts in your home will also have an impact.

There are a number of schemes to help you carry out energy efficiency home improvements.

If you’re claiming certain benefits, energy companies have an obligation to help you under the Energy Company Obligation scheme.

The scheme will pay for loft or cavity wall insulation (as long as it’s suitable for your home), double glazing, and even a new boiler if your current one has broken.

Energy Company Obligation scheme - Ofgem

If you own a home in England or Wales, the Boiler Upgrade Scheme can give you £5,000 towards the cost of an air source heat pump or biomass boiler.

Or you can get  £6,000 towards the cost of a ground source heat pump.

Boiler Upgrade Scheme - GOV.UK

Another option is the Green Homes Grant Local Authority Delivery Scheme.

Grants averaging £10,000 are available to homeowners to install solar PVs, air source heat pumps, and loft, underfloor, external wall and cavity wall insulation.

To qualify, you must have a household income of less than £30,000 a year and your home must have an EPC rating of D, E, F or G.

You can apply through your local council.

Green Homes Grant - GOV.UK

The government also recently launched the Green Home Finance Accelerator scheme.

Under this scheme, £20 million is being made available to lenders to fund affordable loans for homeowners carrying out energy efficient improvements.

Green Home Finance Accelerator scheme - GOV.UK

Key takeaways

• Energy efficient homes are outperforming other properties during the current challenging market conditions
• Six out of 10 estate agents said homes with high energy-efficiency ratings were holding their value
• Four out of 10 said they were seeing more interest in energy efficient homes from potential buyers

 

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by Blackstones

Moderate house price falls set to continue

Homeowners who sold at the end of 2022 saw small price falls but it’s doing little to dent the equity most gained during the pandemic.

Most sold homes saw their prices fall in the last quarter of 2022 after a turbulent final few months of 2022.

This meant the average house price rose 6.5% in the year to December 2022, which is the lowest rate of annual growth since May 2021.

It’s a marked slowdown compared to the 8.3% rise in the previous year when moves and prices were still fuelled by the pandemic boost to the market.

And we expect further single-digit price falls in the first half of 2023.

But thanks to a big jump in home values from 2020 to mid-2022, these modest price falls will do little to dent the equity most homeowners have gained over the long-term.

The number of enquiries sent to estate agents fell by 50% in the last quarter of 2022 compared to the previous quarter.

With fewer buyers in the market and sellers less certain about achieving a sale, buyers have gained the ability to drive some bargains.

They’re now getting an average of 3% to 4% off asking prices originally set by sellers.

But discounts now look to be staying at this level and we don’t see any reason for bigger discounts in the coming months.

Our monthly House Price Index uses more data than any other, so we can get the most accurate picture of house prices across the UK.

However, it's early days to get a clear read on the market outlook for 2023.

Many households thinking about a home move this year are likely to be waiting to see if mortgage rates and house prices fall further.

The economic outlook has improved a little in recent weeks, with mortgage rates settling in the 4% to 5% range.

Buyers and sellers alike will gain confidence from this but the outlook for the housing market in 2023 will become clearer after Easter.

So far, we know that the number of buyers in the market has already rebounded to pre-pandemic levels, in line with 2018 and 10% higher than in 2019.

But priorities are changing as buyers become more value-conscious, with flats and towns near big cities moving up the wish list.

The squeeze on disposable incomes may prompt home moves too, with some seeing it as the time to release equity or find a cheaper-to-run home.

Meanwhile, demand from first-time buyers will remain as they look to escape the rapid growth in rents.

What are buyers looking for in 2023?

While house price falls are never welcome news for homeowners, our latest Value of Housing report might go some way to reassure you.

It found that 92% of homeowners enjoyed value gains on their homes in 2022 despite an uncertain end to the year.

The average capital gain was £19,000 while nearly 3 million homeowners made more than £50,000.

How much value did your home gain in 2022?

The report showed that the total value of homes in the UK is over £10.5 trillion.

With around £1.6 trillion of mortgage value, that leaves homeowners with almost £8 trillion in equity.

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by Blackstones

What are buyers looking for in 2023?

Looking to sell this year? Find out what buyers are on the hunt for right now and which locations they’re looking in.

Key takeaways

• It's all about apartments for home buyers right now
• And towns near big cities are proving to be the hottest locations
• 2023 has kicked off to a slow start, but our research team believe demand for homes is set to rise as mortgage rates continue to fall

 

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by Blackstones

Gas and electricity bills breakdown

Here's a breakdown of the average energy bill to give you a better idea of where your money is going.

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by Blackstones

How much value did your home gain in 2022?

12 in 13 homeowners enjoyed value gains in 2022, could you be one of them?

2022 started well…

2022 was a year of two halves for UK housing.

It kicked off with a strong start thanks to record-low mortgage rates and a continuation of the pandemic-driven desire to move.

These factors, combined with a chronic lack of homes for sale, meant house price growth remained strong up until the summer.

And looking across the year as a whole, 12 out of 13 homeowners saw the value of their home increase by an average of £19,000.

Among them, nearly 3 million homeowners made more than £50,000.

How much value did your home gain?

But then things started to change…

In the second half of the year, the picture became less rosy.

Rising living costs and a jump in mortgage rates halved the demand for homes, causing the rate of house price growth to start slowing rapidly.

In some areas of the UK the value of individual homes is now falling, writing off some of the recent pandemic gains.

How much value are homes losing?

Of the UK’s 30 million homes, 16 million experienced value losses by the end of 2022.

But for the majority of these homeowners, the drop is small. The average value reduction in the final 3 months of 2022 was £3,900.

When compared to the average value gain of £19,000 over the course of the whole year, this leaves most homeowners comfortably in the black for 2022.

And that figure becomes even smaller when noting the average home gained £32,400 during the first two years of the pandemic.

Within the group of 16 million homeowners experiencing value losses in the last 3 months of 2022, only 2.3 million (or 8%) registered a loss over the year.

For these homeowners, that average loss was £7,300.

And more than 26% of those homes were in London.

We estimate that 1 million homes lost all of the value their properties gained in the two years leading up to February 2022.

But these homes were found in areas where prices didn’t increase much during the pandemic in the first place, such as the capital, the South East and Scotland.

A further 7.3 million homeowners lost part of their pandemic paper gains in the last 6 months of the year.

However, while home values are starting to decline in some areas, in contrast to the national headlines, our price estimates for the UK’s homes reveal that 14 million properties saw their values increase in the final 3 months of 2022.

Where are homes losing value?

The reduction in home values over the second half of 2022 was concentrated in markets where price gains have been slower over the last year.

Homeowners in London have seen the largest number of reductions, followed by the South East.

The average reduction between June and December was £8,400 in London and £5,200 in the South East.

However in both these areas, more homes increased in value than fell, showing how the pressure on values is highly localised.

Outside of London and the South East, we found that three-quarters of homeowners saw the value of their home increase by an average of £6,600.

And price falls in these areas were modest, averaging £3,800.

Which areas are in demand right now?

In the latter half of 2022, some markets were faring better than others.

Our latest House Price Index found that affordable cities and suburbs continue to see strong demand for homes, while the outlook is weaker for the more expensive markets and rural locations.

Why are homes losing value?

Home values are starting to fall back because of weaker demand in the final 6 months of 2022.

Rising mortgage rates and cost-of-living pressures are causing some potential home movers to press pause for now. And a reduction in demand leads to a reduction in upwards pressure on house prices.

But while the number of homes losing value is growing: rising from 8 million in between July and December 2022 to 16 million in the 3 months to December 2022, it’s crucial to remember that these price reductions are fairly modest compared to the gains made in recent years.

What’s going to happen to home values in 2023?

The scale of value reductions has been relatively small so far but is likely to grow further in the first part of 2023.

We’re expecting to see national house price falls of around 5% for this year.

Homeowners who lose value may be put off moving or need to look at alternatives like cheaper homes or lower-value markets for their next move.

That said, we’re still expecting 1 million property transactions to take place this year as the pandemic-driven search for space continues. The ability to work from home remains for many office workers, which has opened up the location landscape for many.

Those in retirement, who may be cash buyers or looking to downsize, will also continue to look for new homes and cost-of-living adjustments are likely to motivate people to find new properties that are cheaper to run.

How can I find out what’s happening to house prices in my area?

The outlook for home values depends very much on the individual home and the market it sits within.

It's important that homeowners don’t focus too much on national trends in prices, but rather what’s happening in their area locally.

Key takeaways

• Despite a turbulent second half to the year, 92% of homeowners enjoyed value gains on their homes in 2022
• The average capital gain was £19,000
• However, weaker demand from July onwards meant that nearly 1 in 3 saw the value of their home decline by an average of £4,400 from July to December

 

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by Blackstones

New Save to Buy scheme launched for first-time buyers

What if the rent you paid could be saved towards your deposit instead? New homes developer Fairview has launched a scheme that does exactly that.

A new scheme has been launched for first-time buyers under which all money they pay in rent is put towards a deposit for their home.

The Save to Buy initiative enables first-time buyers to move into their home and pay ‘rent’ at a fixed cost for between six months and two years.

But instead of the money going into the pocket of a landlord, it is set aside until they have saved a big enough deposit to qualify for a mortgage on the property.

The scheme, offered by housebuilder Fairview New Homes, is currently running at two of its developments: New Hayes in West London, and Epping Gate in Loughton, Essex.

However, homes at other developments are expected to be added to the scheme later this year.

Christopher Hood, sales and marketing director at Fairview, said: “We’re bringing forward the opportunity to own a home for our customers.

"Those who thought home ownership was out of reach, because of the rental trap they found themselves in, can finally have the breathing space to save.”

How does Save to Buy work?

People who want to buy one of the Save to Buy homes must have already saved a deposit equivalent to 1% of the property’s value.

They hand this over to Fairview when they first exchange contracts and move into their home.

They then pay ‘rent’ at a fixed monthly cost, based on their own finances and average local rents, with 100% of the money going towards their deposit.

Buyers typically have between six to 12 months to save their deposit, but the scheme can run for up to two years if they need longer.

They can also top up their monthly payments to reach their goal sooner.

When they are within one month of having saved the required deposit, they submit a mortgage application to a lender to buy the property.

Once they have legally completed, they own the property, just as they would if they had bought it on the open market.

Who can use Save to Buy?

The scheme is designed to help people who would not otherwise be able to buy a home immediately.

To use it, you must also be a first-time buyer, be employed and the property must be your only residence.

If you think this applies to you, Fairview suggests talking to one of its sales representatives.

Those wanting to take part in the scheme will need to be assessed by a financial advisor, who will set out the income and deposit they require. They will also conduct a credit check to make sure you are eligible.

Homes available through the scheme are offered on a first come, first served basis, with the initiative due to close to new applicants in December 2023.

What other help is available to first-time buyers?

While Save to Buy is offered by a housebuilder, there are a number of government schemes available to help people get on to the property ladder.

Shared Ownership enables people to buy a share in a property and pay rent on the rest.

First Homes enables first-time buyers, key workers and local people to purchase a home at a 30% discount to its market price.

The Mortgage Guarantee Scheme, recently extended until 31 December 2023, enables both first-time buyers and home-movers to purchase a property with just a 5% deposit, with the government guaranteeing the portion of the loan over 80%.

First-time buyers saving for a deposit can also use the Lifetime ISA, under which they 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

• A new Save to Buy scheme has launched, enabling first-time buyers to move into the home they plan to buy before they have completed on the purchase
• They then pay ‘rent’ at a fixed cost, with all of the money going towards their deposit
• The scheme, launched by Fairview New Homes, is currently available in London and Essex, but is set to be rolled out to other developments later this year

 

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by Blackstones

Fixed rate mortgage deals up for 1.4 million homeowners in 2023

If you're worried that your fixed deal is up this year, you’re not alone. 57% of people who need to remortgage in 2023 are coming off two-year deals fixed at 2% rates.

If your fixed-rate mortgage deal is due to expire this year, you’re not alone. More than 1.4 million homeowners are in exactly the same boat.

And more than half of that 1.4 million, around 57%, are coming off two-year deals that were fixed at 2% rates, according to the Office for National Statistics.

The report said that with the average cost of new two-year fixed rate deals standing at around 6%, someone with a £100,000 mortgage would face a £220 increase in monthly repayments.

Someone with a £300,000 loan would face a £661-a-month jump.

A total of 353,000 fixed rate mortgages are due to expire in the first three months of the year, followed by a further 371,000 in the three months to the end of June, with the rest coming up for renewal during the second half of the year.

An estimated 86% of homeowners with outstanding mortgages are on fixed rate deals, under which the interest rate charged stays the same for the length of the product term, usually two or five years.

The figure is up from just 51% in 2016.

What will happen to interest rates in 2023?

The official cost of borrowing is known as the Bank of England Bank Rate.

The Office for Budgetary Responsibility, which provides independent analysis on the UK’s public finances, has forecast that the Bank Rate will increase to 4.8% in the second half of 2023, before falling to 4.5% in 2024.

But this is just an estimate, and a number of factors, including the uncertain economic outlook, war in Ukraine and high inflation, make it more difficult to predict the future path of interest rates than usual.

What’s happening in the mortgage market right now?

The good news is that despite the fact the Bank Rate increased in the final part of last year, the cost of fixed rate mortgages has actually fallen for the past two months.

This is because the cost at which lenders borrow money for the deals shot up in the wake of the mini-Budget.

It has since come back down after new Chancellor Jeremy Hunt reversed many of his predecessor’s announcements.

The average interest rate charged on a two-year fixed rate mortgage is now 5.79%, according to financial information group Moneyfacts.

For a five-year deal, it is 5.63%.

If you’re borrowing just 60% of your home’s value, typical rates fall to 5.39% for a two-year fix and 5.33% for a five-year fix.

And some sub-5% deals are now becoming available.

By contrast, the average cost of a standard variable rate mortgage – the rate borrowers are automatically put on when their current deal ends if they do not remortgage – is 6.64%.

Those looking to remortgage will need to move fast, with the average deal available for just 15 days before lenders pull it, down from 28 days in January 2022.

Renters also face higher housing costs

The ONS study found that homeowners are not the only ones facing increased costs, with those renting in the private sector seeing the fastest growth in rents since records began in 2016.

One in four renters said their rent had gone up in the past six months, with rents rising by an average of 4% in the past year.

Rent accounts for an average of 24% of renters’ weekly expenditure, compared with just 16% for those who have a mortgage.

Key takeaways

• More than 1.4 million fixed rate mortgages are due to expire this year
• Around 57% of people who need to renew their mortgage in 2023 are coming off two-year deals fixed at 2% rates
• But mortgage rates have fallen for the last 2 months and sub 5% fixed-rate deals are now available

 

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by Blackstones

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.

 

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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.

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by Blackstones