Housing market sees spring bounce, estate agents say

The number of people trying to buy or sell homes has picked up in the past month, according to estate agents.

The number of potential sellers rose in March to its highest level for six months, the National Association of Estate Agents (NAEA) said.

And the number of prospective buyers went up by 7% last month.

The NAEA said spring had brought its usual increase in activity, and suggested sales would improve in the coming months.

"Spring has finally arrived and brought with it a much needed boost to the housing market, particularly among sellers," said Gary Smith of the NAEA.

"This figure has been low in recent months and this is a welcome indication that reflects a growing confidence that the recovery is well underway."

Earlier this week, a survey by the the Royal Institution of Chartered Surveyors (Rics), some of whose members also work as estate agents, reported that the number of people trying to sell their homes last month had reached its highest level since May 2007.

According to the NAEA's survey, the average number of homes for sale at each of its member's branches rose from 56 in February to 60 in March.

At the same time, the number of house hunters registered with each branch went up by 7% last month, to 274 per branch.

Sales have also risen, the NAEA said, from an average of 6.8 per branch in February to eight last month.

The NAEA said all this was encouraging, especially with more sellers around.

"This month's figures reveal an increase in the levels of housing stock with more properties available for sale per branch - the highest value recorded over the last six months," the NAEA said.

"More house-hunters also registered their interest. With the bad weather now behind us buyers and sellers alike are returning to the market with a renewed vigour," it added.

Posted at 06:56PM Apr 16, 2010 by Kelly Board in Mortgages & Housing Market  |  Comments[0]

No Action Needed on Quinn Insurance

The Solicitors Regulation Authority and the Law Society have both issued statements reassuring Quinn Insurance policyholders that they do not need to take action after permanent administrators were appointed to the Irish insurer yesterday.

The SRA said that the full administration of Quinn under Irish insurance legislation ‘does not appear to amount to an insolvency event for the purposes of the Solicitors Indemnity Insurance Rules in England and Wales, and therefore there is no requirement at this stage for firms insured with Quinn to seek replacement qualifying insurance’.

It added: ‘We will continue to monitor the situation closely and will advise the profession of any significant developments or change to our view.’

The Law Society said that ‘financial regulators in Ireland and the UK are advising that Quinn policies remain in full force and effect’.

In its statement, the Society warned solicitors not to act on an unnamed professional indemnity insurance (PII) broker’s letter to customers of Quinn Insurance, the Irish insurer currently in administration.

According to the Society, the broker’s letter states that ‘there remains the possibility that [Quinn Insurance’s] provisional administration will be either set aside or confirmed. In the latter event, Quinn would cease to be a qualifying insurer and its insured firms would have to seek cover from another qualifying insurer within four weeks’.

The Society said: ‘We do not think the position is as clear cut as the broker’s letter sets out and we would urge policyholders to await further developments and guidance before taking any action.’

The Society said it believes that ‘the making of the particular type of administration order concerned by the Irish courts under the particular piece of Irish legislation concerned is not a direct equivalent to an administration order made here in England and Wales', and as a result, ‘this does not automatically mean that an insolvency event for the purposes of the Solicitors Indemnity Insurance Rules has occurred’.

Normally, when an insurance company suffers an ‘insolvency event’ under the rules, such as provisional or full administration, solicitors are required to find alternative PII cover within four weeks.

The Society said that the type of administration order concerned ‘appears to be more akin to a regulatory intervention in a business and is intended to maintain the business as a going concern’, but said that the SRA will determine this issue. ‘Even if the confirmation of the administration order does amount to an insolvency event it may be open to the SRA to exercise its discretion to grant waivers of its rules,’ the Society said.

‘Firms will wish to keep these matters under careful and close review since, as [yesterday’s] events confirm, matters could move quickly. For our part the Society is constantly monitoring these matters and is in close contact with all appropriate stakeholders. We will be issuing more information and guidance to the profession (as will the SRA) as the circumstances require.’

Meanwhile, administrators are reported to be seeking permission from the Irish Financial Regulator to reopen parts of Quinn Insurance’s UK arm, but are not planning to re-enter the UK PII market, which is understood to have been loss-making.

Posted at 02:07PM Apr 16, 2010 by Marc Stenton in Insolvency  |  Comments[0]