Louise | Property Venture

Surrey Residential Development project update

Forgive me! I need to shout about my residential development.

We are making progress on site. After not much appearing to happen – well that is what Building Control said. We now have RSJs being installed into the build.

So excited was I, I just had to go and video the moment.

Surrey residential development

I’ve sped up the action for you. Not so much to give the impression that progress is on booster rockets. But for those of you who aren’t interested in cranes and RSJs it might seem like you are watching paint dry at normal speed.

This way you get to see over 2 minutes’ worth of footage in 22 seconds. Now aren’t I considerate 🤔😆?

The last time I was this excited was when we hired a cherry picker to put Christmas lights up in a very tall tree… And it wasn’t me who damaged the crane but my husband’s ‘driving’.

This is about passion and excitement. I care about outcomes and the process which forms part and parcel of what I do as a personalised sourcer. Helping time-strapped expats and busy working professionals seeking to build property portfolios, but their circumstances don’t allow them to easily.
I have a tried-and-tested approach to help discover the optimum investment approach for clients. If you’d like to book a chat or to find out more, go here.

I also update the development journey to my Property E-Insights database sign up on the left side menu and on Linked In

What excites you about building or property more generally?

Tags: Buy to let, development, investment property, new build, Surrey

Get your house in order! But how during turmoil?

If you’re a property investor, alongside your day job or an Expat investing at distance, there’ll be things on your mind currently. Like how to get your property investing on a sound footing or getting your ‘house in order’

If you’re not investing full time and property is not your career, then you might be finding it tricky to keep up with what is going on in the property world. Especially with so much world turmoil post Covid and with a war at the heart of Europe.

But keeping some of the fundamentals in mind can help.

So what are they?

Clarity of property strategy

If you have spent time thinking carefully about your strategy and how it fits with your lifestyle and needs, then don’t fling caution to the wind and change. That’s not to say, stay closed and doggedly pursue a strategy that is not working.

If you have a long term investment horizon then that helps buffer you against some of the short term market issues and sometimes they are not long-lasting… If you are targeting the right tenant type, then persist but adapt. Changes to market conditions like the ‘WFH’ Working from Home Phenomenon have created a different type of housing demand.

Taking control of ‘getting your House in Order’

At a time when the world feels like it is out of control it is worth spending time and effort on those things you can take control of…

Simple things like making sure you are claiming for all the expenses available to you. For example travel costs for property inspection visits, that mounts if you live abroad.

Or scrutinising your property outgoings and ensuring all the services you pay for are still valid and needed

If you are not sure what you can take control of, or whether you have a tried and tested strategy that will work for you, then perhaps now is the time to reflect? Or work with someone who is rooted in the property world and understands the kind of challenges you face and who can help you do just that.

I have helped expats and busy professionals find the right approach for them to invest, even in trying circumstances.

I have a tried-and-tested approach to help discover the optimum investment approach for clients.

If you’d like to book a chat to find out more, visit here

Or get in contact +44 (0) 1932 849 536 or e-mail info@property-venture.com

My business focuses on helping time-strapped expats and busy business people who don’t have the local presence, or capacity, to acquire the ‘right’ properties for them. Property Venture® is an award-winning, Boutique property consultancy that finds the right investment properties for clients.

Tags: Expats, investment property, investors, professionals, Strategy

Day in the Life of a property developer – DILO

I have helped expat clients navigate the UK property market to invest whilst the Stamp Duty Land Tax (SDLT) ‘holiday’ was in place. I too decided the timing was right to turn developer and take on a renovation project to capitalise on the last wave of tax savings. When buying in the South it’s best to take all the savings you can get!

I did a lot of desk research and Due Diligence on deals in the Surrey market. I found one in July of last year. My offer was based on an affordable purchase price. I had worked out the costs involved to make the house liveable. My second offer was accepted and I have been progressing the project steadily since.

There have been plenty of challenges along the way, including dealing with: Estate Agents, banks, lawyers. As well as hitting the SDLT deadline. It’s then been a question of getting planning permission and trying to find a decent builder. A decent builder who has a free slot and who can provide a reasonable quote for the work.

The last few weeks I have spent mostly scouring the Schedule of Works developed in conjunction with my architects. I am seeking alternative ways of doing things. Including researching substitute materials that might work out more cost-effective.

Energy Performance Certificates – EPCs for Developments

One of my drivers has been to target an Energy Performance Certificate (EPC) grade of ‘C’. This is to partly future-proof the energy performance of the property. The rules governing qualifying buy-to-lets are due to tighten to a ‘C’ EPC grade in the next 3-4 years. This has meant I’ve done some desk research and talked to an EPC Assessor. I have sought to get an insight into the way Retro-fits are assessed vs new builds. Talking to a Building Control Officer has helped check acceptable U-values of insulation material.

According to the EPC assessor, new builds are assessed using a SAP calculation. A SAP calculation uses lots of data points as input to the grading and summary provided on the EPC register. U-values are taken from the prevailing Building Control standards. But for retro-fits the original build date is used. As well as a pared-back calculation based on the area, volume and floorplan. This means the assessment is less rigorous. That could either help or hinder the final assessment, but it isn’t possible to tell until the day of reckoning and assessing.

This level of research and negotiation is the type of service I offer you my distance investing clients as part of my bespoke sourcing service. So if you would like to hear more about working with me then please message me or use the link to book a session

Tags: Buy to let, Developer, investment property, Renovation

UK’s ‘Levelling Up’ What implications for property investors?

‘Levelling Up’ the government’s signature policy for boosting economic growth in the Midlands and North is still without a Blueprint. Although the Department for Levelling Up, Housing and Communities, headed by Michael Gove has promised one soon.

‘Levelling Up’ included an integrated rail plan for the North and Midlands. However the scrapping of the Eastern leg of HS2 from Birmingham to Leeds and the connections between Leeds, Bradford and Manchester has created doubts. How easily can levelling up be achieved?

Casting an eye over the current economic statistics, they reveal a wide variation in productivity and performance across the country. This is not just about the ‘left behind’ or forgotten mining communities. Our main regional cities are under performing.

The greater South East is one of the most productive parts of Europe. Whilst the UK’s largest cities outside the South East are responsible for the UK’s poor productivity. This includes Birmingham, Manchester and Glasgow. What’s more the UK’s regional cities compare unfavourably with their counterpart cities in Continental Europe (Policy Thinktank Centre for Cities).

This is puzzling given some of these cities have been revamped in recent years and injected a degree of diversification into their micro-economies.

One issue appears to be ineffectiveness in building higher productivity and exporting businesses in trading sectors. This is where innovation can be generated and retained in the local economy. Instead many regional cities revolve around service industries like entertainment and leisure. These give a buzzing feel to a location but not always an enduring economic upturn.

Creating genuine regional autonomy to drive innovation and attract private sector investment, is going to be important for the Levelling up agenda.

Why is all of this important for you?

An important consideration for you as a property investor is how well a local economy is doing and therefore how attractive the local housing market is. Not to mention how infrastructure improvements enhance the standing of an area.

How are property investors affected by Levelling Up?

So when you see signs that the ‘Levelling Up’ agenda is going to make a difference and create fundamental change rather than cosmetic changes to our Regional cities, that will be a moment to benefit.

Not all infrastructure investment works well. Take the Freeport status, conferred on eight cities and towns in the Spring Budget. Heralded as boosting the nationwide economy though lower tax regimes. The OBR’s analysis suggests this simply alters location choices, rather than boosting the overall national economic picture.

How to Navigate the Property market?

In the property sector the much-anticipated increase in mortgage interest payments, may just be around the corner. Many of you younger investors and homeowners may not remember the time mortgage interest rates rose to over 15% in the late 80’s. So whilst we aren’t entering those realms necessarily, the interest rate rises will be the biggest since the financial crisis. The OBR expects the Bank of England to raise the Bank Rate from 0.1% to 0.75% by the end of 2023, which will translate through to mortgage repayments.

This is a time to take stock and not mortgage to the hilt, whether you invest or are home-buying. Rates can go up as well as down. And consider locking into a predictable low rate now.

‘Levelling up’ Implications for you property investors in summary

Some regional property markets have benefited from decent capital uplift because of investment in the inner city centre areas, but more could still come in the major centres like Manchester and Birmingham if the Levelling Up Agenda addresses the fundamental issues.

London has been the engine driving the economy but even its productivity growth has been stunted since the financial crisis. So invest in areas with an eye on current economic performance and future growth prospects in mind.

If you want help on your property investment journey then get in contact +44 (0) 1932 849 536 or e-mail info@property-venture.com

Inspired by a Sunday Times article written by David Smith

Tags: Capital uplift, Infrastructure, investment property, Regional cities

Rishi dishes property investors curveball

Rishi Sunak delivered a big tax-and-spend budget to the UK last week, but what does it mean for property investors?

The property market was buoyed through covid by the Stamp Duty land Tax (SDLT) cuts. This coupled with the pent-up demand, which was an overhang from the prolonged and tortuous Brexit negotiations. This resulted in a surprising 10.6% house price growth over the year to August 2021*.

With this Budgetary overlay how will property investors be affected?

On the one hand there was some positive economic news:

The Office for Budget Responsibility (OBR) forecasts for the UK have been revised to the positive:

Economic scarring from Covid has been revised down from 3% to 2% as a drag on the Gross Domestic Product (GDP)

Public borrowing is forecast at £183 bn in 2021/22 vs the original £234bn

And there are negative pressures:

The tax burden will rise to 36.2% GDP by 2026/7 the highest since the 1950s

The national Insurance increases to cater for the health and social care levy, will hit middle earners and low earners although the bolstering of the Minimum Wage lessens the impact for some lower earners

There are likely to be rises in Council Tax bills which will add to the woes of energy and fuel prices. The Treasury has assumed annual rises of 3% as a minimum, with the expectation it could rise by 6% a year for many years to come.

These measures, combined with higher inflation will squeeze real incomes, as wages don’t keep pace.

And there is the added uncertainty of the UK’s relationship with the European Union which exacerbates the already strained international supply chains. Not only for day-to-day availability of goods but also for developers, and investors undertaking refurbishment work. OBR figures indicate that UK-EU trade dropped by 15% compared with 2019 while non-EU trade fell by 7%. This suggests there is a net Brexit impact of about 8%

Are you a Pensioner?

If so you will feel the discomfort as the Triple Lock on pension sums is suspended. This is likely to cost each pensioner on average £2,600 over the course of 5 years. The Triple lock guaranteed growth of: either 2.5%, or in line with average annual earnings growth, or inflation – whichever is the higher.

And ISA limits are frozen until at least 2023

This compounds the effect of persistent low rates for mainstream investments and savings accounts. This might maintain property investing momentum, as investors turn to property for better returns

How to Navigate the Property market?

This is a time for you to take stock and not mortgage to the hilt, whether investing or buying a home. Rates can go up as well as down. And consider locking into a predictable low rate now.

Cladding and Mortgageability

There are still distortions in the property market cause by the Cladding fiasco, particularly in city centres. Without the EWS1 forms (External Wall System Cladding assessment) many properties are unmortgageable and consequently pretty much unsellable. This has helped push up the prices for the mortgageable stock available on the market. A double whammy for sellers and you buyers.

The Budget announced the Cladding Levy on builders with over £25m annual profits. This will contribute to the £5bn the government has committed to fixing the cladding crisis.

This levy is a bit indiscriminate, given it does not necessarily hit the builders who are responsible for the situation. But will nevertheless affect new development investment decisions and is likely to affect new build prices. This could impact the future supply of housing and fuel price rises, not dampen them.

Infrastructure

Investors among you take note that not all infrastructure investment works well. Take the Freeport status, conferred on eight cities and towns in the Spring Budget, heralded as boosting the nationwide economy though lower tax regimes. The OBR’s analysis suggests this simply alters location choices, rather than boosting the overall national economic picture.

So investors, it is worth realistically assessing whether the Infrastructure boost is real or flimsy.

UK Budgetary implications for you property investors in summary

The market is likely to polarise with new build becoming more expensive and resales looking better value for money.

Larger scale Developers are likely to include more of the tax burden and higher build costs into their retail property prices.

Second hand homes might look even better value in comparison. We could see more distressed sales as the reality of the higher cost of living bites.

Undertaking developments has greater uncertainty currently for you with build costs higher, planning departments more overstretched than ever and lead times ever longer. So if you are taking on projects, think carefully about where you can minimise risks, either through mitigating any planning downside or minimising build changes and working with professionals with integrity.

If you want help on your property investment journey then get in contact +44 (0) 1932 849 536 or e-mail info@property-venture.com

*ONS

Tags: Buy to let, EWS1, investment property, new build, Resale, second hand

What opportunity in the UK property market for expat investors?

UK property: Sales

As we are nearing the end of the final phase of the Stamp Duty (SDLT) holiday at the end of September (on the first £250k of property purchases) it seemed apt to reflect on how it may have helped or distorted the market.

The volume of UK House sales declined in July after the 1st main SDLT holiday ended. Tax data showed that residential purchases were 63% lower than in June. So the number of housing transactions fell, but what effect did it have on house prices?

A recent article in the Financial Times quotes a study by the Think Tank Resolution Foundation which reveals that the biggest house price rises were in areas that least benefited from the SDLT tax cuts. So the SDLT holiday may not have distorted pricing as much as many people think.

UK property: Rental market

On the rental side, more Institutional Investors are coming into the rental market, attracted by the demand, returns and stability offered. Today’s rental market has changed dramatically. Demand has continued to increase, with 1.7 million more rental households in 2017 compared to 2007, according to the ONS.

Build to Rent

Institutional investors are entering the market at scale with Build-to-Rent. Purpose-built Build to Rent is a new concept in the UK, which started around 2016, but a model common in other countries like Germany and elsewhere in the European Continent. It means tenants rent off a Corporate landlord. In theory tenants are offered a more consistent service level, in return for higher rents when compared with some of the private rentals on the market.

Landlords like: John Lewis, Legal and General and now Lloyds Bank is the latest to enter the housing market with the intention to buy and rent out 50,000 homes in the next decade. They may offer longer tenures that many tenants crave, but are likely to push rental prices up.

Future for UK First time buyers?

In the end the market may be shaped in a different way. Still difficult for First Time Buyers, as prices are so buoyant and inaccessible. Yet with more rental stock potentially becoming available, the UK housing market could start to look a bit more like Continental Europe in nature in the future.

This presents opportunities for investors in the buy-to-let sector. As prices are still inaccessible for many and the rental sector becomes more homogenised and potentially expensive, renters will still want character, individual properties in the right locations. The bigger block build of Build-to-Rent won’t necessarily be in the optimum locations that many individual, resale properties might be

If you want help on your property investment journey then get in contact +44 (0) 1932 849 536 or e-mail info@property-venture.com

My business focuses on helping time-strapped expats and busy business people who don’t have the local presence, or capacity, to acquire the ‘right’ properties for them. Property Venture® is an award-winning, Boutique property firm that finds the right investment properties for clients.

Tags: Buy to let, Expats, investment property, rental

What role does ‘gut instinct’ play in property?

When you make decisions you think things through and tend to have a ‘gut instinct’ about whether the decision is right. Sometimes a decision might be based on instinct, rather than what the logic of our brain tell us.

‘Gut instinct’ or intuition accesses accumulated experiences in a synthesised way, so that judgments are formed and action taken without any logical, conscious consideration.

Think about when you’ve gone to view a property, you might instantly take a like, or dislike, to it from the outside. It may look old fashioned, ugly and run down from the outside and you may know from past experience that this is a good indicator, that the inside is likely to be in bad shape. So your ‘gut’ or intuition, tells you that, based on previously seeing neglected properties this won’t be for you if you don’t want to do any renovation work.

Yet another investor might be drawn to the ugliest properties, perhaps because based on past experience they can generate the highest yields and cashflow if they are in the right area and serving the right tenant type.

These situations create an ‘emotional tag’ linked to a previous experience which influences decision-making, more than objectively assessing the pros and cons of a situation. This means that to protect decisions against bias, you first need to know when you can trust your gut feelings, confident that they are drawing on appropriate experiences and emotions.*

So when can you trust your gut during property investing?

We often push ourselves outside our comfort zone to achieve things we haven’t achieved to date. This can sometimes create the same sort of feelings of unease we feel when we are about to make the ‘wrong’ decision.

So how do we tell the difference?

I talk a lot about Due Diligence, in essence doing the research and checking things out before making an investment decision. This can play an important role in helping understand if we are feeling uncomfortable because we are stepping outside our comfort zone or because there is a real cause for concern.

Role of Due Diligence on property investment decision-making

Before you part with any money, or sign any legal contract requiring future payments, then it is key that you carry out appropriate checks not only on your potential investment, but also on anyone you might be investing with and the professionals you might use along the way.

Whether that be visiting the local area and comparing comparable prices, rental returns, taking stock of the infrastructure, transport links, schools and health care or checking out a developer’s or builder’s reputation, as well as all the legalities.

So once you have checked things out and taken an objective view of the investment opportunity you can use this to supplement your subjective ‘gut instinct’ and check if the gut instinct is based on:

identical or similar situations and whether you have experienced this feeling sufficiently to know that the gut instinct is sound?
whether you learned the ‘right’ lessons in the past or are not remembering the situation accurately
over-reliance on someone else’s judgement to form your decision, who will have a different set of experiences and judgments.

There is a place for pushing yourself outside your comfort zone as well as using ‘Gut Instinct’ in property investment. The key is to use due diligence tools and techniques to introduce objectivity to the decision-making process and distinguish whether that gut feel of unease is because you are trying something new or because there is a genuine, logical reason for it.

If you want help on your property investment journey then get in contact +44 (0) 1932 849 536 or e-mail info@property-venture.com

* Strategic decisions: When can you trust your gut?” published by McKinsey Quarterly in March 2010 based on Nobel laureate Daniel Kahneman and psychologist Gary Klein work

Tags: Buy to let, Due Diligence, investment property, Risk & Reward

Prospects for the UK property market beyond tapered SDLT?

House prices seem to be rising inexorably.

House price inflation is at 8.9% – taking the average house price in England to £268,380. The volume of transactions are also up by about 30%.

Yet the monthly price change in April was – 1.9%.* Whilst we should not read too much into a month-on-month change, it might indicate a slowing of inexorable price rises.

The UK property market has continued to surprise. Given the country has been through the protracted Brexit negotiations and then had to face the Covid-19 pandemic, it has remained remarkably buoyant.

Arguably housing is often seen as a safe haven asset during times of political and economic volatility, which may explain some of this sustained activity.

Low mortgage rates**, meaning that borrowing is relatively more affordable for property investors and homebuyers alike, has sustained demand. All at a time when there is still a systemic supply imbalance, meaning prices are pushed up.

Anecdotally vendors have been maximising what they can achieve for their homes during the rush to hit the various SDLT holiday deadlines. This may have mitigated any potential tax savings for the buyer by baking them into vendor asking prices.

Timing entering the UK Property market?

There is never a ‘perfect’ moment for an expat to invest for the first time, but often it can come down to an individual vendor’s readiness to negotiate, not the whole market, although the market obviously influences vendor sentiment and price expectations.

There are indications the property market might now be less heated than it was. The latest Land Registry HPI for April shows that monthly price changes in England are down marginally. This coupled with the big SDLT savings being greatly reduced from 1^st July may mean the rush and sense of urgency could abate in the Autumn/Winter period.

If you would like help finding the right property for you then please get in contact.

Disclaimer: Property Venture® is not a tax adviser but has outlined information in layman’s terms to enable top line comparisons, nor is it offering advice.

With regard to in-country legislation, letting licences and taxation laws, then you must take appropriate legal or taxation advice during your purchase process, at which time your solicitor or advisor will discuss with you up-to-date legislation and costs

*Office for National Statistics using the latest April data

** Bank of England Base Rate has stayed under 1%, for over a decade, significantly less than during the global financial crash when the base rate in July 2007 was 5.75%

Tags: Expats, investment, SDLT, UK

What works for you Commercial or UK Residential property?

The UK residential property market remains buoyant as a result of the various SDLT holiday extensions and the Furlough scheme supporting employees. Yet some investors have turned to the commercial property market to look for opportunities. Recent and further impending planning Class changes from 1^st August 2021, relaxing the rules around converting many types of commercial buildings to residential, have meant investors are embracing the potential opportunities this brings.

But the commercial property sector also has its inflated price challenges. And it isn’t just the private residential rental market where the government has imposed restrictions on landlords over evictions or seeking to claim unpaid rent. It is also in the commercial sector.

Although some restrictions are lifting like the Residential eviction ban was lifted on 31st May, there are other more lasting changes that will endure. For example new ‘breathing space’ laws, which might affect the types of tenants residential landlords want.

Whichever type of opportunity you are seeking, remember there are some enduring principles that work whichever the sector, particularly when it comes to due diligence.

UK Residential and Commercial Property: 6 Tips

Check UK Property Title

This is useful to do early on in the process, to look for Title defects or covenants and to get an idea of the pricing history, all of which is useful information shaping the decision on whether to invest and also with the negotiation stance

Right area?

Whether commercial or residential, this is important. If for example you are seeking to do a commercial to residential conversion, then it is important to check that the area has a sufficiently residential look and feel for. This will increase the chances the end product will work well and be profitable, either as a hold or sell-on opportunity

Sourcing requires similar skills and sources:

Agents – are useful in both sectors although the type of agents differ in their approaches. Commercial agents may talk more qualitatively about the building rather than the numbers, but all agents are motivated to conduct viewings to be actively promoting a property.

Direct to Vendor is a buying strategy for both sectors. For Commercial property tools like LandInsight and Nimbus are used for Land and commercial and can help when checking Title or identifying the owner to approach directly

Google Street views are powerful to show the history of the building for planning and to show how it has been constructed and extended over time.

Checking Property Floorplans

This is a useful technique for ensuring whatever planned building usage changes, the minimum space requirements are met for residential living

Property Tenant checking

Whilst this is important for residential properties, it tends to come at the end of the Due Diligence process. Whereas for commercial it is one of the first priorities to check out the tenant company. This can be done on Companies House if it is a Limited Company to ensure there is a robust income stream and business model to sustain rental payments.

Property Contractual terms

Are important for both residential and commercial sectors, but more so in commercial as the various Lease clauses change the nature of the contract significantly, more so than for a more standard residential Assured Shorthold Tenancy (AST) contract.

If you would like to talk about residential or commercial opportunities, whether that be Student Accommodation or Hotels then please get in contact or email info@property-venture.com

Disclaimer: Property Venture® has outlined information in layman’s terms to enable top line comparisons. Property Venture® is not offering advice. With regard to in-country legislation, letting licences and taxation laws, then you must take appropriate legal or taxation advice during your purchase process, at which time your solicitor or adviser will discuss with you up-to-date legislation and costs

Tags: Commercial, Due Diligence, Residential, UK

8 ways to Outgazump the Gazumpers?

Approximately 28% of UK transactions fall through each year.* Of these 21% of buyers were gazumped – losing the property due to the vendor accepting a higher offer from another buyer.

Given there are about 1m annual transactions, gazumping accounts for nearly 59,000 transactions falling through.

Other reasons for failed transactions included:

• 27% where the seller decided not to sell their home

• 21% of buyers being unable to complete sales on their own homes

• 21% of buyers finding an alternative home to buy

Gazumping is more prevalent in a buoyant property market when vendors are in a strong position. It isn’t always about more money. Sometimes buyers can get caught in a protracted buying process which means the process can be more susceptible to things going wrong.

Given this is a scourge rearing its head again in 2020 and 2021….

What can you do to protect yourself from Gazumping?

Be as ready as you can be at the outset, for example getting finances organised. Or ensuring you have the ‘right’ professional adviser for the type of transaction you are conducting. A process-driven online conveyancing house is not likely to be the best adviser for a Title split or an Options deal.
Request a Lock-out agreement, if a vendor agrees to it. The benefit is it gives peace of mind on timeframes to the vendor as well as the buyer. The predictability means everyone can plan their lives around move dates, so the transaction is far less likely to fall through. The penalty is whatever the financial commitment has been agreed in the Agreement.
Or Exchange early, say with 1% deposit to secure and lock in the deal
Do your Due Diligence up front – researching the area and property as much as possible before waiting for a lawyer to check it e.g. buy the Title Deed from Land Registry to verify ownership, check historical pricing and check boundaries. Or asking for a management pack for leasehold properties.
Go for speed of transaction – which gives less time for the transaction to falter
Build vendor rapport so there is a human commitment and get the property taken off the market immediately. Strive wherever possible for a transparent transaction, so you are aware of every development in a timely fashion.
Indemnity insurance or Homebuyer protection insurance can protect against wasted fees spent on surveyors and searches
Buying at Auction can help address the gazumping because all the buyer’s information is provided up front and the accepted offer is binding.

There are different buying models in other countries

Scotland’s property buying process

Gazumping is rare in Scotland. Solicitors are bound by their professional body (Law Society of Scotland) which bans the practice of Gazumping and are often involved with the marketing and selling rather than just estate agents. Although gazumping can still occur with smaller boutique agents.

In Scotland a Home Report is provided by the Vendor, a bit like preparing the sale for auction in England and Wales. It contains a floorplan, an EPC (up to 6 month’s old), a Gas Safety Certificate, a Survey by a RICs-qualified surveyor, as well as the Utility Providers.

The former Home Information Packs (HIPs) helped in England and Wales , providing EPCs and the Vendor’s questionnaire, but they fell into disrepute and only the EPCs have survived.

France’s Property Buying Process

In France, the 2 contract system also helps mitigate Gazumping – the deposit is paid on signing the ‘Compromis de Vente’ rather than awaiting the ‘Acte de Vente’ the Final Deed and transfer of Title . On the upside, the buyer’s deposit secures the property by contract, the vendor is not allowed to accept any other offer, at that stage. However there are downsides for the buyer, if the buyer pulls out without adequate cause, for example if the survey reveals serious unacceptable faults, the buyer may forfeit the deposit.

Generally it is easier for Homebuyers to get caught out more than Investors, given they are buying more based on emotion and rather than the numbers an experienced investor is more likely to do.

Inspired by a Clubhouse conversation in Toyin Ayandare’s Room 7th May 2021

N.B. *Sprift, A Which? survey of 2,000 homebuyers in February 2016,

If you would like help finding the right property for you then please get in contact.

Disclaimer: Property Venture® is not a tax adviser but has outlined information in layman’s terms to enable top line comparisons, nor is it offering advice.

Tags: France, gazumping, investment property, Scotland, UK investment