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Written by rosalind renshaw

A new structural guarantee product has been launched into the estate agency market for homes over ten years old.

Unlike the NHBC guarantee for new homes only, the idea is that it can be used as a ‘selling point’ for secondhand properties, with buyers having more confidence in older properties and agents set to earn referral fees for introductions.

The product would be bought by the seller at the time the sale completes, with the cost going out at the same time as, for example, Stamp Duty and solicitors’ fees.

It is likely to cost the seller from £650 to £1,500 depending on the sale value of the property, and would cover the buyer with an insurance-backed guarantee covering the cost of putting right any structural defects and failures discovered within three years of purchase.
 
It is also envisaged that the new Homebuyers Structural Guarantee would give the buyer’s lender more confidence.

The product – claimed to be a first – has been developed by the Property Guarantee Company in conjunction with Building and Land Guarantees, an independent broker specialising in building guarantees.
 
Paul Oxley, director of the Property Guarantee Company, said the product filled a ‘gaping hole’ in the market.

He said: “We have long held the view that the UK housing market needs to offer wider protection to purchasers of existing houses.

“After a great deal of effort I am pleased to say that we now have a genuine market first. This guarantee will be a major benefit to anyone involved with the housing market and we look forward to it becoming a market standard for the sale of existing houses.”
 
James Russell, Building and Land Guarantees director, said: “A guarantee of this nature is much needed by home buyers.

“For estate agents and sellers, it could make their property stand out from the rest. It should be a key point for solicitors acting for potential purchasers, knowing that protection is in place for their client – and clearly mortgage lenders want to see that level of guarantee too.

“In our view, the application of the Homebuyers Structural Guarantee could mean the difference between a property transaction successfully completing or not. Put simply, the housing market needs it.”

Referral fees of between £50 and £100 would be on offer to agents, but Russell said the amount would be agreed, adding: “Naturally, we’re open to negotiation, depending on the volume of referrals.”

There is, inevitably, one drawback: very old properties, built before 1880, are excluded.

www.tpgc.co.uk

www.buildingandland.co.uk

Comments

  • icon

    Oh dear, you are an angry chappie, but do try to post on the right story!! Do try to calm yourself.

    • 06 December 2012 11:27 AM
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    I see some people on here still do not get it...
    The good old debt party times are over.
    Gone for a very long time..
    Notice the poster who mentions Pent up demand...oh dear..
    What do you think is going to happen? debt for all again?

    • 05 December 2012 15:39 PM
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    Exactly Gerry, just sounds like money for old rope to me.

    • 05 December 2012 14:13 PM
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    Who writes this drivel?

    IT IS NOT A GUARANTEE AND IT HAS NOT BEEN ONE FOR SOME YEARS AND US EA's ARE NOT ALLOWED TO CALL THE NHBC A GUARANTEE BUT A STRUCTURAL WARRENTY. SO THERE! (Some idiots against rules still call it a guarantee and I hope they get ther just deserts).

    The NHBC provide an insurance cover which is like most insurance of this type so full of caveats it is noththing to write home about.

    • 05 December 2012 13:19 PM
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    How did they arrive at 1880 as a cut off, why not 1901 or 1837 or any other random date!?

    • 05 December 2012 12:33 PM
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    Nearly all my older properties were built prior to 1880, as were the barn conversions. Late Victorian is modern! How misleading and what a waste of space!

    • 05 December 2012 09:35 AM
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    Anything that gives buyers peace of mind when purchasing is a very good thing.

    Buyers are becoming increasingly choosy on which property to purchase and the pent up demand from potential buyers in rented accommodation (The type of buyer who can take all the time they want before buying) means they will look for every protection they can.

    Innovative idea, best of luck with it

    • 05 December 2012 09:30 AM
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    Utter rot, full of flaws. Anyway 1880 isn't old, its nicely maturing quality!

    • 05 December 2012 09:16 AM
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    Sounds like the horrific "Gap Insurance" they now try to mis-sell you when you buy a car.

    To the sound of The Kaiser Chiefs...

    Watching the people get lairy
    Is not very pretty I tell thee
    Walking through town is quite scary
    And not very sensible either

    An agent I know well he got beaten
    He sold bad insurance to a policeman
    Mary Portas getting her smug face on
    A pain in the bottom

    La-ah-ah, lalala la la la
    Ah-ah-ah, lalala la la la

    I predict a riot, I predict a riot
    I predict a riot, I predict a riot

    • 05 December 2012 08:41 AM
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    What a load of expensive nonsense. The best option for purchasers is to get a structural survey - it will cost less, any problems should be identified and remedial costs can often be recovered via negotiation with the vendors. Worst case there is an existing insurance product - the surveyors PII. I hope it does not get taken up and become the norm.

    • 05 December 2012 08:18 AM
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