An Overview of Estate Agents in UK in 2021

1. An Overview of Estate Agents in UK Estate agents form part of a large network of people who look after the affairs of large estates across the UK. They are responsible for sourcing the best deals on behalf of their clients and acting on their behalf when it comes to selling, buying, or remortgaging a property. These include handling correspondence, negotiating contracts, organising paperwork, and completing the title application process.

2. Estate agents are also responsible for ensuring that all tenant requirements, such as insurance, are met. They are charged with ensuring that property sales are successful and ensuring completion of lettings. If a client fails to meet requirements, they are obliged to make alternative arrangements. This then means that the property market is far more competitive than previously and lettings can take place quicker and cheaper than ever before. the successful Skills and abilities of Professional Estate Agents Typical estate agents will have a range of skills and experience that they bring to the table. For example they will be able to conduct research, acting for both tenants and lenders, and being able to provide an understanding of the residential property market. They may also be able to deal with lettings and dealing with various aspects of the property market including maintenance and repairs. Estate agents can also deal with matters arrangements, legal issues, planning permission and ownership of the building. They can even offer advice such as financial

3. on how to get into certain areas of the UK and can help with the search for mortgages. Mortgage Brokers Mortgage Brokers Mortgage brokers traditionally used to dominate the role of buyers and sellers. Buyers were required to contact estate agents and mortgage brokers to obtain quotes for loans. Buyers would then compare these quotes to choose which one was the cheapest. Estate agents were then required to match the quote with buyers from the relevant area and submit the loan application to the lender. Buyers had to obtain the necessary documentation from the lender and this meant that buyers were often delayed or even denied a mortgage. Financial Services Authority Financial Services Authority With the introduction of the Financial Services Authority and the housing market reform measures in 2021 new rules are in place to help buyers and sellers access better mortgages and the local property market. An estate agent would not be able to provide this service for a buyer or seller. In order for the buyer to obtain a mortgage they would need to contact a local estate agent who would then make

4. a referral to the lender for them. The process has been simplified, but not without some criticism. Estate agents still have to follow strict guidelines laid down by Ofsted and the FSA regarding how they perform their role. Buyers will not be able to use estate agents in order to obtain a mortgage either. This is because the Financial Services Authority has introduced a cap on the amount that any one broker can charge in order to represent a client. This has been implemented in order to stop "uniform pricing" which means that estate agents will be limited to charging the same fee to all potential buyers / sellers. Cost Of Estate Agents Cost Of Estate Agents In practice this means that estate agents will be limited to charging the maximum fee they can find a client for. If the estate agency finds a client charging less than the maximum fee they can charge the client, it is obliged to cut their fee to the lowest price it can find. The FSA has also stated that no broker should charge more than 3% of the value of the property.

5. Estate agents still find themselves having to work with lenders who may be reluctant to give mortgages for fear of being squeezed by competition from estate agents. One solution for this would be to offer mortgage brokerage services. Some brokers are reluctant to do this as their business revolves around high street finance, which does not lend itself to being able to provide mortgages to buyers on the high street. Others see the service as being too complicated and exclusivity is another issue which hinders lenders from offering mortgages to all

6. applicants. Many buyers and sellers believe that high street banks still have too much control over the mortgage sector and refuse to allow estate agents to work alongside them. The law and regulatory changes meant that the role of the estate agent was restricted to advising on the contract or buying plan and not providing any direct financial advice to the buyer or seller. Summary Summary Because they had to rely on their own knowledge about the property they could not offer guarantees on either side. This meant that the roles of the estate agents and buyer seller became defined by regulations rather than the desires of the clients. Because the regulatory changes did not allow the agents to act as brokers and allow them to offer independent financial advice on the roles of both professions have remained the same for many years. For Further information visit this site: https://blackstoneestateagent.co.uk/