June Content Property

Estate agents report more sales per branch

Estate agencies around the country have reported an increase in sales per branch, the latest figures from NAEA Propertymark have revealed. Property transactions remain solid so far in 2019, demonstrating the ongoing resilience of the property market with the sales per branch now the highest since October 2018.

Mark Hayward, chief executive, NAEA Propertymark, said: “Despite a fall in housing supply and demand, it’s encouraging to see an increase, for the first time this year, in the number of sales going through.

“This means that even though buyers and sellers remain uncertain given the current climate, many are continuing to move forward with their transactions and sales are still happening at the rate we would expect to see at this time of year.

“More than four in five properties are selling for less than the original asking price, so there’s opportunity for house buyers and sellers to negotiate an offer to get a sale moving.”

First-time buyers continue to prop-up the market somewhat, with sales to this group increasing once more; a 27% increase was seen in April, which is a 3% rise year-on-year. The consistent appetite for property amongst the first-time buyer populous has been integral to the health of the market over the past 24 months, and with sales to this group still rising it bodes well for the market.

Guide to designing a child's room 

Designing a child’s room can be tricky; there are a number of factors to consider so it is hard to know where to begin. Design trends are forever changing and your child is constantly growing, so it’s important that you consider a few things before starting.

Striking the balance between fun and practical is a challenge and designing something that your child does not grow out of too quickly is not easy, but by taking the time to think it over, you can save yourself a lot of hassle and create a space that is fun for them and easy for you to manage.

Draw Up A Floor Plan
Before you start buying all sorts of cute and colourful furniture, it’s important to remember that depending on your child’s age, this room could have a variety of functions.

Have a think about what the room will be used for and draw out a plan. If the room just needs to be a comfortable place to sleep then you should have plenty of freedom; however, if it also needs to be an area to play and study, you’ll require a good amount of floor space and maybe a dedicated corner for a desk.

Everyone’s home and preferences are different but you want to get as much out of the space as possible, so take a moment to consider the role that the room will play and how it may change over the next few years.

Choose the right colour
It may be tempting to simply ask your child what their favourite colour is and then start buying paint or wallpaper.

While it is a good idea to include your child in the design of their room, if their favourite colour resembles a highlighter pen, then your best option is to go with the more neutral shade of that colour.

Your best strategy is to aim for a colour palette that nicely blends with a variety of furniture and will not look so childish once your child turns into a teen. Save yourself a redecoration job in 18 months by picking a colour that will age well with the rest of the ever-changing décor.

Decide on the flooring
When it comes to flooring you have a few options, all with their pros and cons, so you just have to decide which will be best for you.

Carpet helps keep the room a little warmer but is vulnerable to stains. Hardwood is much more durable and easy to clean but does not provide much cushion for a child that is a little more clumsy than most. You could also opt for rubber flooring that does offer the benefits of both carpet and hardwood; however, it is the most expensive option of the three.

The flooring that is best for you is dependent on the age of your child, but research your options while keeping your budget in mind and make sure your choice of flooring compliments the room and doesn’t break the bank.

Getting the furniture right
There are two key things to keep in mind when choosing your furniture: functionality and lifespan.

We’ve already established that space is a valuable commodity so finding multifunctional furniture can be a real lifesaver.

Beds that have storage built in underneath are quite easy to find and the extra storage they provide can go a long way, as well as free up more of the room for other essential items. This also gives you an opportunity to get a little creative and look for ways to combine 2 items into one such as adding some padding to a desk or dresser so that it also can be used as a changing table.

The other consideration for furniture is its lifespan. A lot of cute miniature beds, tables and chairs might look great, but you must remember that your children will grow out of them quicker than you think. A good strategy would be to buy some furniture that they can grow into. Their small clothes may not justify full sized dresser just yet, but it will not be long before you are looking for extra storage space and their feet are hanging out of the end of the bed.

Add character through accessories
Now that your room has been planned out, you have chosen your colour palette, had the flooring fitted, assembled and placed the furniture, it’s time to add character.

The great part about this phase of designing the room is that because the rest of the room's features were kept neutral and timeless, you can now give your child a good amount of freedom to add their own personality to the room from accessories.

Whether it’s action figures, bed covers or posters, you can basically style the room however you want and the best part is, these accessories can be easily replaced and changed over the years at the same rate as your child’s taste in décor shifts from one thing to the n

Planning permissions relaxed for home extensions

A formerly temporary right that gave homeowners the ability to extend their properties up to eight metres without formally seeking planning permissions has now been made permanent, amidst a package of planning reforms from the Government.

If you have been thinking of adding some extra space to your property, then this will come as welcome news, as the protracted permissions can now be avoided altogether. Under the new legislation, terraced or semi-detached homes may add a single-storey extension of up to 6 metres and detached properties see this increased to 8 metres.

Housing Minister Kit Malthouse MP said: “These measures will help families extend their properties without battling through time-consuming red tape.

“This is part of a package of reforms to build more, better, faster and make the housing market work – and sits alongside our drive to deliver 300,000 homes a year by the mid-2020s.”

Further to changes for the housing sector, business owners are also privy to favourable planning rules; shops are now able to change to office space without the need for a full planning application. These business reforms build on changes which now allow businesses to change the use of buildings from takeaways to new homes without the need for a full planning application.

Planning permission can equate to a minefield of red tape for homeowners looking to add space to their current property, often being a key factor in a decision whether to extend or not. Interestingly, 15% of Britons state that they are unable to remember whether they have the correct planning for amendments to their properties which could cause headaches when they decide to sell up and the requisite paperwork is demanded. With over 100,000 extensions completed under the previously temporary rules since 2014, an increase in home improvements could now be seen as sellers take advantage of the newly-embedded legislation.

How to become a buy-to-let landlord

Bricks and mortar have always been a bolthole for people looking to invest their money in a safe place and, despite recent changes to the lettings market, buy-to-let remains a popular investment avenue. If you are looking to become a buy-to-let landlord, then the results can be fruitful – follow our five tips below to start your journey!

1. Mortgage Matters

The first port of call if you are considering becoming a buy-to-let landlord is the mortgage market; either with your current mortgage provider if you are looking to convert a current mortgage into buy-to-let, or to the general marketplace if you are looking to buy a new property for lettings purposes. Ensure that you shop around for your buy-to-let mortgage as the marketplace is currently extremely competitive in terms of lending, which should help you to obtain favourable rates. If you are converting your mortgage, ensure that your lender has granted you “Consent To Let” before you move any tenants into the property.

2. Managed or Unmanaged?

With the recent surge in tenant and landlord legislation, managing your own property may seem like a daunting prospect. If this is the case, then look for a reputable estate agent who will manage the lettings process for you – this will take a lot of the stress out of letting a property for you. If you are more confident, then you may want to work with an agent to list your property and find tenants, but then manage those tenants independently – if this is the case then seek as much advice as possible and keep legislation at the top of your list as a landlord.

3. Landlord Insurance

When it comes to buy-to-let properties, you will need to make sure that you are covered for every eventuality. Specialist landlord insurance is a must, as well as buildings insurance, and if you have furnished a property then contents insurance may also be required. Speak to your chosen estate agent about their recommendations in terms of insurers and remember that spending a little on comprehensive cover may save you a lot in the long run.

4. Financials

Once you have your buy-to-let mortgage in place, you have your tenants in a fully-insured property and you are reaping the rewards, one of the key steps will be filing your taxes correctly. With buy-to-let being an investment source, you will have to pay specific taxes regarding the property and the profit which you are making from that; speaking to an accountant will help you to get your finances in order. Further to this, you will be able to offset some of your expenses and costs against tax – don’t miss out on these opportunities.

5. Target Market

It would be easy once you have your investment property in place to then sit back and relax. One of our recommendations would be to keep your finger on the pulse of the lettings market and adapt your property accordingly. Currently, the student lettings market is extremely popular and the potential rental yield extremely high, therefore it could be a good market to position your property within currently. As the economy changes, families may be the driving market in lettings, or indeed young professionals, therefore stay flexible with your offering and you may well be able to increase your portfolio.

How to keep your home cool this summer

Most of us spend the colder months of the year dreaming about the summer, but it can be easy to forget how inhospitable the heat can make your home.

Ensure you have all the fun in the sun with none of the discomfort with our guide to keeping your home cool this summer.

Use your windows and curtains
It’s a shame to shut all that natural light out of your house, but unfortunately it comes with a good deal of heat. Closing all your curtains or following the sun’s progression across your house will seriously lower the temperature.

However, as soon as the sun has gone down, we would recommend throwing open the curtains and windows so that you can let in as much of that cool evening air as possible.

Build a makeshift air con
Can’t afford the electric bill and initial cost of an air conditioning unit? You can create your own air con by placing ice/frozen ice packs in a washing up bowl. You can then place it at an angle in front of a regular fan, which will circulate cold air around the room.

Switch off the electrical appliances
Every single one of your appliances gives off heat whilst they are on. During the hottest hours of the day you should avoid using washing machines, dishwashers, hobs and ovens. Lighting should also be avoided when the sun goes down.

Drink plenty of water and eat cold
Staying hydrated and eating cold food like salad will help you to keep your body temperature down and avoids using any heat generating appliances.

Sleep on the lower floor
Have you ever headed upstairs when its sunny, only to find that the upper floors are far warmer than the lower floor? This is because heat always rises to the highest possible point. If you are struggling to sleep, ditch the sweltering upper floor and sleep downstairs – either on your couch or your airbed.

Insulate
You probably see a lot of advice articles recommending insulation for keeping your home warm in the summer, but did you know that it also keeps the heat out in the summer? If you don’t already have insulation in your home, it will practically pay for itself in the money saved on energy bills.

Mortgage approvals at highest rate for almost three years

After months of stifled activity caused by Brexit uncertainty, the UK property market continues to show signs of rude health. The latest example of this comes from mortgage approvals, which according to reports reached their highest levels in over two years during the month of April.

Industry body UK Finance have released figures detailing that British banks approved a total of 42,989 mortgages across the month of April. This was an increase of almost 2,500 from March’s total and marks the biggest annual increase seen in the market since March 2016. Remortgaging approvals also benefited from an increase, with a 5% rise from March to April and an 11% year-on-year rise.

The much-publicised delay of Brexit isn’t the only factor in this rise; unemployment levels across the country fell to their lowest levels since 1974 during the month of March and strong earnings growth alongside low interest rates have also played their part. Still, the delay of our exit from the European Union appears to have galvanised house buyers and encouraged them to proceed with their property purchases

“April’s marked rise in mortgage approvals suggests that housing market activity may well have got at least some temporary support from the avoidance of a disruptive Brexit at the end of March,” said Howard Archer, chief economic adviser at EY ITEM Club, an economic forecasting group.

It will be difficult for the market to sustain such numbers, especially as the year wears on and October draws nearer. Consumer confidence across the country isn’t as strong in comparison to France or Germany for example, according to the European Commission’s data, but given the shifting nature of the market over the last year, this certainly doesn’t represent a surprise.

Property transaction numbers increase by 4%

A key indication to the health of the property market is always transaction numbers, with healthy transactions pointing towards a strong marketplace with serious buyers. In April this year, there were an estimated 64,000 transactions which represents a 4% increase in transactions from the same point last year, according to LSL and Acadata.

With a marked increase in transaction numbers, the market is proving to be extremely resilient in a turbulent political landscape. Strong first-time buyer activity in the marketplace, with many taking advantage of the Government Help-To-Buy scheme, as well as the changes to Stamp Duty encouraging purchases. Indeed, only 65% of transactions were reported as liable for Stamp Duty during the first quarter of this year.

Supporting this increase in transaction volumes is an extremely solvent mortgage market, with more money being injected into the housing market in May 2019 than at any point since 2017. In May this year almost £9bn of home-purchase mortgages were approved by banks and lenders, which is 6% higher than the previous month and an 11% increase on the same time last year.

“April’s marked rise in mortgage approvals suggests that housing market activity may well have got at least some temporary support from the avoidance of a disruptive Brexit at the end of March,” said Howard Archer, chief economic adviser at EY ITEM Club, an economic forecasting group.

It seems that the sentiment in the market is that both buyers and sellers are somewhat fed up of waiting for a Brexit resolution, and are therefore eager to carry on with their property transactions in the present rather than biding their time.

Jonathan Harris, director of mortgage broker Anderson Harris, agrees with this assertion, commenting that: “As the politicians continue to argue and don’t seem any closer to a resolution, people are finally getting the message that they need to get on with their lives and not rely on what is going on in Westminster and beyond,’ he said.

“Lenders remain keen to lend and there are some very attractive rates to tempt borrowers brave enough to take the plunge.”

Reports of weak housing market exaggerated

Headlines of late have focused on the political instability which may have a negative effect on the property market; however, when we look at the statistics it becomes evident that the reports of a weak housing market have been grossly exaggerated. New research by Zoopla has shown that properties in Britain sell in just 56 days, on average.

In the period between April 2018 and March 2019, looking at the 50 towns with the largest number of property listings, 56 days was the average time period for a property to go under offer. Elsewhere, in Scotland it took less than four weeks for properties in Falkirk and Edinburgh to find a buyer.

“Despite widespread reports of a subdued housing market, Brits may be surprised that it takes less than two months for the average British property to go under offer from the date it was first listed for sale,” says Zoopla spokesperson Annabel Dixon.

“The key is to get your pricing correct, meaning the best way to sell your home quickly is to ask for its true value given the current market. Overpriced homes won’t shift and may have to be discounted and, on the flip side, nobody wants to sell for less than their property is worth.

“Wherever in the country you are buying, it will pay dividends to get your finances and paperwork in good order ahead of time,” she adds.

10 fastest moving property markets

 

Rank	Town	Average days to secure an offer	Average property value (May 2019)
1	Falkirk	27	£154,579
2	Edinburgh	27	£298,575
3	Glasgow	31	£186,705
4	Stirling	32	£222,736
5	Cardiff	37	£255,528
6	Coventry	37	£215,909
7	Newport	40	£187,842
8	Nottingham	41	£207,456
9	Birmingham	41	£207,474
10	Mansfield	42	£156,763

Summer property maintenance tips

Now that summer is availing itself, many of us are making the most of our outdoor spaces and enjoying the uptake in the weather. However, whilst we enjoy being outside don’t forget to keep your property ticking along during the summer months. Here are a few maintenance tips that should keep your property in tip-top condition over the next few months.

Check your gutters
After the cold winter months with freezing temperatures, gutters are at risk of leaks and especially following the recent spell of rainy weather which can move debris into gutters, summer is the ideal time to check their health. Leaky and unsecure guttering can lead to bigger problems of water damage to your property, as well as being a fall hazard. Whilst you’re checking your gutters, go ahead and check your drainage system at the same time to ensure that there aren’t any blockages there, too.

Doors and windows
Similar to your guttering, doors and windows have been through a rough period by the time summer is in full swing. With the cold months of winter potentially cracking door and window seals, followed by spring showers causing further damage, it is imperative to check your doors and windows. Of course, if you have double glazing this is less of an issue, but checking that your seals are in order is certainly a good use of half an hour during the summer to stop any problems later on in the year.

Central heating
When the weather heats up, the temptation is simply to turn off the central heating, give the radiators a holiday and then start everything back up once temperatures inevitably plummet. Keeping the heating on a low-level through the colder summer days will keep the central heating system ticking over and also prevent any damp issues. During the summer, bleeding your radiators will also ensure that they remain efficient – if you’re unsure of how to do this then a quick search online will direct you to some intuitive videos. If you go on holiday during the summer, the same applies; keeping the heating on a low level may save you larger problems in the long run.

Sound the alarms
Whilst a check of your smoke and CO2 alarms may not seem like a particularly summery activity to be carrying out, you should be checking these units several times a year. By building these checks into your summer list of tasks, you are keeping yourself and others safe.

Insulation throughout the seasons
Updating your insulation may intuitively seem like a winter task, but part of keeping your home cool and comfortable in the summer is good insulation as this will stop heat penetrating the building. Of course, when it comes to the winter months you will also reap the benefits of insulation as it will keep the heat from escaping, ensuring a cosy property when the temperatures begin to plummet.

Traditional Estate Agents "good value for money"

With recent changes to the landscape of estate agency, including online-only providers and new fee structures, it may come as a surprise to some to see that traditional estate agents are considered good value with regards to fees and value-for-money, estate agent comparison site GetAgent has found.

The review site has found that 84% of home sellers who purchased a property over the last year decided to use a traditional estate agent, with 69% of those feeling that the fee which they paid was good value for money. It would seem, therefore, that when making one of the biggest decisions that many of us will ever make, the traditional method of building a relationship with an agent who then leads you through the buying or selling process is still heavily favoured.

Colby Short, founder and chief executive of GetAgent.co.uk, said: “We’ve seen some big changes to the sector over the last decade through the rise and fall of the online agent and this consumer learning curve has led to an adjustment in opinion when it comes to the fee charged to sell a home.
“While a low fixed fee may have seemed like the future of home selling and many may have sold successfully via that model, a number of high-profile company collapses along with a consistent string of customer service failures has seen the market share of online agents fail to live up to expectation.

“Previously, the commission fee charged by traditional agents was seen as too high, I think the consumer is now starting to realise that you get what you pay for.

“To pay a few thousand pounds in commission to achieve a higher sold price while securing a buyer in current market conditions is ultimately much better value for money than a few hundred up front and no sale achieved at the end of it.

“Of course, the current lethargy plaguing the market is not ideal and has evidently had an impact on the price achieved and the time it’s taking to sell, but I think it has helped demonstrate the worth of a good estate agent which is a silver lining for the industry at least.”

Why the Tenant Fee Ban is good for landlords

From 1st June 2019, the Tenant Fee Ban has been in place in England which will make it illegal for landlords to charge lettings fees and with deposits now capped at a maximum of six weeks’ rent. Whilst this policy clearly aims to provide security to tenants, the benefits for landlords are also palpable, both in the short-term and long-term.

On average, individuals are forecast to save £400 per tenancy with the new legislation and tenants should be feeling more secure without the spectre of fees hanging over them. With further moves towards pro-tenant legislation put forward by the Government, such as the abolition of Section 21 evictions (encompassing evictions whereby no fault needs to be declared by the landlord), it is clear that rigour in the marketplace is a high priority for the Government. With the so-called “Generation Rent” of younger tenants now becoming a real electoral force, this pro-tenant legislature is expected to continue in order to curry favour with this sub-section of the electorate.

Scotland, which brought in similar legislation seven years ago, has proved that banning the fees will have very little effect overall on the market. While many have been concerned that the lost fees will be reflected in higher rental prices, for Scotland only 2% of landlords actually increased rents as a direct result of the ban.

For landlords, although on the surface some of the changes to the market may seem like a challenge, many will have already adapted their practices for the market. Longer tenancies, some as long as three years, are already common in the marketplace and offer the stability which the legislation is looking to implement. A longer tenancy is clearly beneficial for a landlord as there is a long period of guaranteed stable rental income, and with a longer tenancy often comes better preservation of the property as tenants will treat the property with better due care and attention.

For landlords, the lettings market as an entity is likely to change in the long term thanks to these legal changes, bringing a different demographic of renters who rent by choice rather than necessity due to the favourable tenant market. With a new demographic of renters with higher disposable incomes available, this could provide a new avenue for landlords who are looking to increase their rental yields.

How to sell quickly this summer

With plenty of buyers motivated to move before the winter months set in, summer can be the perfect time to sell your property. If you’re selling, or considering selling, then read some of our pointers to help you sell quickly this summer…

Kerb appeal
As is always the case with selling properties, a first impression can make or break a sale with a poorly presented property often putting off buyers before they have even set foot in the home. In the summer this is especially important as buyers will often drive or walk past a property before they decide to book a viewing. With the summer sun shining a light on any less-than-perfect parts of the exterior of your property, you should ensure that flowers are planted, weeds are pruned and lawns are mowed. Extra attention to details, such as ensuring that the front door has been cleaned and the windows are streak-free will pay dividends in your selling process.

Accessories
A neutral interior will appeal to a mass market and increase the scope of your property in terms of potential buyers, but if you are looking to make the most of the summer then don’t be afraid of colour. Using accessories to add pops of colour around your home that reflect the brighter summer season – such as burnt orange and lemon – will make your property stand out from the crowd in those all-important photographs.

Lights
When we think of summer, we all first think of sunshine and brighter evenings – so make the most of this light when presenting your home for sale. Get rid of heavy curtains and dark blinds, which can make a room feel smaller and prevent the light from entering a room. Buyers want to feel that rooms are bright and spacious, so if possible, have windows and doors open throughout the house to create a light, airy feeling (as well as bringing in those fresh summer scents).

Set dress
Set dressing refers to the arranging of a room or space in order to paint a picture of the kind of lifestyle which could be enjoyed in your property. Never is it more important to set dress your garden than throughout the summer months, with potential buyers wanting to know that they will be able to enjoy the outdoor space which your home provides. Tempt potential buyers by showing off your outdoor spaces with garden furniture, fire pits and barbecues.

Viewing times
During the summer months, many people like to start work early and leave early in order to benefit from the longer evenings; make sure that you can accommodate as many viewings as possible by being flexible with your viewing times. Allowing people to view your home early in the morning, as well as in the afternoon will help bring more people through the door as well as showing off your property in favourable light.