View more on these topics

A fee and easy approach

Julian Stevens feels aggrieved by the lack of regulation of estate agency and recruitment consultancy businesses compared with UK financial services (Money Marketing, January 6).

Fair point. However, he believes Halifax Property Service’s charge of 2 per cent to sell a property for his client does not represent value for money. I disagree. The fee can represent excellent, fair or poor value for money depending on the services provided to buyer and seller.

If Julian is reading this, I hope he is sitting down, as estate agents in Spain, where I work part-time, normally charge 5 per cent on a secondhand property and 10 per cent on a new one. That really is a rip-off, irrespective of services provided.

In my experience, what people hate about hourly fees is that they have no idea what the final cost might be. Perish the thought but I have heard of some hourly fee-charging IFAs who have unnecessary meetings to bump up the chargeable hours. Far better, in my view, to explain to the client what the cost will be in absolute terms and tell him or her exactly what they are going to get for that money. Most clients will be happy with that, whether they are visiting an IFA, estate agent or recruitment consultant.

Surely clients go to estate agents because they believe it is the best way of selling their property with the least hassle and in the shortest timescale. I would be happier paying a fee of 2 per cent if the sale is completed in two months rather than 10. Why shouldn’t the agent earn the same money for doing the work in less time if it is to my benefit?Similarly, if I were arranging a pension transfer for one of my clients and earning 4 per cent, I am sure he would feel he had better value if it took two months rather than two years to transfer it.

I have spent 12 years in this industry doing unpaid work for the many which was subsidised by the few. My New Year resolution for 2005 is to stop this practice immediately. By the end of March, all my clients will be on fixed fees, perhaps with a commission offset.

Some may well refuse but I doubt I will cry too much over them. Good luck to all in 2005, I hope you don’t need it.

Steve Laird Hanley Morton, Belfast


LivVic reasserts mortgage guarantee

Liverpool Victoria has reaffirmed its guarantee that the maturity value of mortgage endowment policies will be at least equal to the death benefit.

Correspondent’s Week

After a week and a half out of the office enlivened only by the usual range of novelty underwear from my loving relatives, received while sitting round a dead tree, it is good to be back.

Charity Bank offers tax breaks

Charity Bank – a not-for-profit bank – is offering a five year tax efficient savings account that offers savers 5 per cent per a year tax relief plus 2 per cent annual interest on all deposits. Charity Bank says the 5 per cent a year tax relief is equivalent to a gross return of 8.33 […]

Multi-Manager view

2005 will mark the 17th anniversary of the Financial Services Act. Seventeen years ago, the concept of multiple managers being available within a single product was barely heard of.

Allianz Technology Trust – April 2017

Welcome to the latest update for Allianz Technology Trust PLC from the Trust’s portfolio manager, Walter Price. Portfolio review The Trust’s NAV returned 4.3% , outperforming the Dow Jones World Technology Index return of 2.8%. In US dollar terms, the portfolio gained 4.8%. During the month, stock selection contributed to relative performance, and industry allocation […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm