Housing: Access to housing and the property market

Ways of access to housing. Preferences and values

• There are no restrictions on foreign ownership.
• Foreigners and non-residents can also get a mortgage.
• Most mortgage lenders offer fixed-rate and variable-rate mortgages and will require you to raise a deposit which is usually higher for non-residents.
• Same taxes apply to the property and property-related income for non-residents as for UK residents.
• It is not yet known how Brexit will affect foreign buyers.
• For owning a house in the United Kingdom, there are different steps and rules for Wales, Scotland and Northern Ireland. It usually takes 2 to 3 months to have a house.
  Standard steps to follow:
  • Finding property.
    • You can search for properties on websites like zoopla.co.uk or themodernhouse.net.
    • Examples of real estate agents: Foxtons, Countrywide, Bradleys Estate Agents, Manning Stainton, Ludlowthompson.
      • Many estate agents offer solicitor and mortgage arrangement services.
      • An estate agent should be a member of the National Association of Estate Agents.
    • You can also find properties for sale at property auctions and by scouting specific areas.
  • Making an offer.
    • The offer is usually made through an estate agent.
    • Estate agents, lawyers and mortgage lenders are required by law to check your identity.
  • Arranging a solicitor and surveyor.
    • The solicitor is a person that takes care of legal work, mortgage, if there is one, and tells how much it can be expected to pay. Solicitor fees can change.
    • The surveyor will check the property for problems. There are different types of survey available, including:
      • Royal Institute of Chartered Surveyors (RICS) condition report – this is a basic survey used for new homes.
      • RICS homebuyer report – this is a more detailed survey that includes a valuation.
      • The building or structural survey – is recommended for older homes or those in need of repair.
  • Finalizing the offer and mortgage.
    • It is a moment when the price can be renegotiated.
    • After acceptance of a finalized offer, it is time to pay a deposit and finalize your mortgage.
  • Exchanging contracts.
    • You’ll receive the contract from the seller’s solicitor to sign and complete the sale.
  • Completing the sale and final arrangements.
    • Paying remaining money owed to buy the property.
    • Paying your solicitor’s bill.
    • Registering the sale with the Land Registry by the solicitor.
    • In England and Northern Ireland after buying home costing more than £125,000 you have to pay Stamp Duty in 14 days.
    • In Wales, you will need to pay Land Transaction Tax on properties over £180,000.
• Renting is easier than buying. Below you will find some information about renting in England.
  • You can rent from the landlord or through a letting agent.
    • Letting agents must be a member of a redress scheme.
  • Landlords and agents will want to confirm your identity, immigration status, credit history and possibly employment status.
  • It is illegal for letting agents and landlords to charge certain fees from 1 June 2019. You can find more information about them in Tenant Fees Act 2019.
  • You can ask for a tenancy to be at any time between 6 months and 7 years.
  • There is usually a fixed period of 6 or 12 months for tenancy.
  • Remember to check: Deposit cap. and deposit protection.
  • When you’ve found a place, it is important to check things like:
    • Tenancy Agreement – read it carefully before signing.
    • Inventory – check it with your landlord before you move in and take photos in case of any future problems.
    • Check meter readings so you won’t pay bills for the previous tenant.
• A landlord must provide a tenant with:
  • A copy of ‘How to rent: the checklist for renting in England‘.
  • A gas safety certificate.
  • Deposit paperwork – if you have provided a deposit, the landlord must protect it in a government-approved scheme within 30 days and provide you information about it.
  • The Energy Performance Certificate.
• Shared Ownership
  • There is a possibility of buying only a part of the home (between 25% and 75%) and pay rent for rest.
  • Rules of shared ownership are different in England, Wales, Northern Ireland and Scotland.

Exercises

External link to Housing: Access to housing and the property market exercises (483).