Property sellers warned of hidden ‘upfront cost’ that could emerge before a buyer is found under new rules
Selling a home is a relatively straightforward procedure, but mammoth costs incurred throughout the process often catch the unexpected seller by surprise.
Listing a property requires thorough preparation as hidden costs often emerge before a buyer has even put in an offer.
Following new regulations, sellers have been told they could face additional administrative tasks and costs as conveyancing processes become more complex.
Regulations announced last year require home sellers to provide additional information before listing their homes, which means they’ll have to provide vital paperwork.
Home sellers may have to pay more fees before putting their property on the market
PA
Anton Osborne, director of property at Taylor Rose, said the new changes and requirements were confirmed by The National Trading Standards Estate and Letting Agency Team.
According to the experts, the rules will require estate agents to provide more material information when a property is listed. This will almost certainly increase the upfront cost of selling a house.
“It is unlikely that any seller – or indeed their estate agent – will be knowledgeable enough to provide the substantial amount of information now required in order to comply with these mandatory requirements,” explained Anton.
“Sellers are almost certainly going to need to instruct a property lawyer at the end at the point they list the property to ensure they can be compliant with these requirements, and this is going to come at an additional cost.”
The extra fees will likely stem from services by lawyers providing vital information about properties at an upfront cost, the expert noted.
He continued: “No property lawyer is going to assist a seller in obtaining this information for free, hence, there will be an upfront cost that previously there hasn’t been to put your property on the market.
“Additionally, not all properties that are listed actually sell, so even before you have found a buyer or a chain is completely, each party in that chain will have had to go to the time and expense of providing a significant amount of pre-sale information, which is always at risk of resulting as wasted cost.
“This change will only make the conveyancing process even longer.”
The expert also warned that the Government’s current major legislation – the Leasehold and Freehold Bill 2023 – is focused on leasehold reform and the capping of ground rents in an attempt to prevent spiralling costs for homeowners.
“The Government has potentially not considered this significant unintended consequence of capping ground rent,” explained Anton.
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“These major reforms will have significant repercussions for private pensions, as most pension funds invest in ground rents as a stable and reliable form of income generation.
“If the legalisation goes ahead and rents are capped, the government and pension funds must speak effectively to ensure we don’t see the value of nearly all pensions drop significantly.”
Jonathan Veers, owner and operational director at The Buy To Let Platform, recently discussed another rule concerning electrical fuses, which will need to be stored differently than in previous years.
The ‘Electrical Safety Stands in the Private Rented Sector Regulations’ will require fuses to be stored in a metal-clad consumer unit or metal-clad casing.
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