UK market review - number 27, 2011
Instant Virtual Visiting
Impact of the growth of mobile internet access
UK sales of smartphones – mobile phones with advanced web browsing capabilities – now vastly outnumber those of less 'web-friendly' phones. As a result, access to the web via mobile devices is likely to exceed desktop access within two or three years. Amongst some groups – 16 to 24 year old Londoners, for example – it already has*. On the high street, this is starting to have a real impact, as consumers realise that, whilst deciding whether to buy an item they are looking at in a shop, or to visit the restaurant they are outside, they can quickly check reviews, pricing and alternatives. It is also changing the way in which we do business.
We first launched a mobile version of the JSS website nearly two years ago (a step most of our competitors have still yet to make). Since then, usage has grown dramatically, almost tripling in 2010, reflecting both the growth in mobile web browsing and how much our users like it: a huge proportion of our mobile traffic is from returning visitors. How is this changing things?
Much of it is about speed. People who happen to pass a property of interest are checking its details immediately, then calling us for an appointment – a phenomenon which is being boosted by our unique and expanding use of Fast Find numbers on for sale boards. New enquiries are coming from others who have gone to an area and checked our map (which centres on the phone’s location) to see if anything is available nearby. We have to be right on the ball too, because, by the time they have called us, they will often have seen not only the property’s details, but also its nearest competitors, local crime figures, school Ofsted rating, street view, aerial view and even its last selling price. And of course, finding their way to even the most remote house is no longer a problem: the phone will direct them. Much of this tidal wave of information is helpful, but it can be highly misleading. An aerial view might show how close a house is to a motorway, but not the height of the hill between them or the direction of the prevailing winds. A search might reveal an earlier selling price, but not the value of either a subsequent extension or the lifting of a restrictive covenant. Most importantly of all, a great many of us start with one idea of what we want, only to realise over the course of physically walking around a good number of houses, what genuinely matters to us, what really feels like home. Virtual reality is a poor substitute for the real thing.
All of this puts the onus on us, as agents, to have an even deeper knowledge of our clients' properties and of each prospective buyer’s needs – and to help them use technology, not be led by it.
For the latest versions of our mobile website and apps for both iPhones and Android mobiles, please go to jackson-stops.co.uk.
*Source: Ofcom, August 2010
JSS PRIVATE FINANCE
Time to fix or track
With inflation soaring, pressure is mounting on the Bank of England to raise interest rates sooner rather than later. Inflation is running at twice the government’s two per cent target, and expected to edge higher still. Meanwhile, at their last meeting, three of the nine-strong Monetary Policy Committee voted in favour of a rate rise.
The question buyers are asking is whether they should opt for a fixedrate mortgage to protect themselves against inevitable rate rises. The problem is that while interest rates have not started edging upwards yet, money market rates – the rate lenders pay to borrow from each other – have already risen. Indeed, they are already factoring in between two and three quarter-point base rate rises this year.
This means that fixed-rate mortgages have become more expensive since the start of the year and continue to do so.
Those who have not yet secured a fixed-rate mortgage will find that they are rather more expensive than they were just a few weeks ago. Compare fixes with base-rate trackers and you will notice a big difference in price. Borrowers are increasingly wondering whether it is worth paying such a significant premium for the security of knowing what their monthly mortgage payments will be for a period of time.
Much depends on your circumstances. If you require peace of mind, are on a tight budget or simply want to know exactly how much your mortgage will be each month, then a fixed rate makes sense. However, if you don’t need this security, a baserate tracker will be rather cheaper – at least initially. Some trackers are so much cheaper than fixed rates that you could cope with several quarterpoint increases in base rate before your payments would be higher than on the fixed rate.
Jackson-Stops & Staff Private Finance specialises in providing sound mortgage advice and can be contacted on 0870 600 1650.