Feb property article

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A Basic Guide to Decorating

 

Flick through the pages of any magazine these days or scroll through the popular Pinterest app and you’re likely to see endless images of chic properties with timeless décor. For those of us that are blessed to be able to colour-match and accessorise effortlessly, this is an entirely attainable vision; however, for the rest of us who are a little more challenged in the decorating department, it can be tough to know where to start. Read through our basic guide to decorating and we will provide you with some guidelines which are sure to help you turn your home in to a real page-turner.

Start scheming
So, you have decided to revamp a room, you’re excited and you just want to get the paint brushes out but hold on…you need to take a moment and think about what you really want! Taking a moment or two to plan will help to ensure that the effort you’re going to is really worth it, and having an overall concept will hold all of the interior elements together. Ask yourself what you like and dislike about the room currently and how you want the room to feel - cool and trendy or warm and welcoming? These simple questions will help you to focus in on how you’d like the end result to be and using apps such as Pinterest or Instagram will help you to decide on overall concepts. Creating a mood board for the room will help to streamline your ideas and will serve as a reference throughout the entire decorating process.

Stay in neutral
It may seem like a safe or unimaginative option, but neutrals are timeless when it comes to decorating. When you have a neutral palette to work with, you can layer colours and textures on top of the basic colour scheme in order to achieve your desired look. With new trends popping up seemingly every other day, having a neutral colour scheme allows you to easily change the feel of your room simply by updating the accessories and soft furnishings. You can also add in vibrant pops of colour to lift your room when using a more neutral scheme, with accent pieces such as side tables and upholstery offering some interest in to your colour palette.

Softly, softly
Soft furnishings can put the va va voom in to your room! Having strong accent pieces, as well as coordinated soft furnishings such as curtains, throws, pillows and rugs create a more coherent and cohesive atmosphere in a room. Rotating which soft furnishings you have in your room seasonally works really well to make your room feel up-to-date and contemporary; for example, using a blue rug and pops of yellow during the longer winter months, or some glittery cushions for the festive period. These pops of colour and print will have the desired outcome of a tasteful and chic room.

Simplify
Don’t be scared to leave spaces empty in your room. Horror vacui, a fear of empty spaces, is evident in so much of today’s culture with a tendency to want to display all of our knick-knacks throughout our homes. When you have gone to the effort to stylishly decorate your room, don’t ruin the hard work by then adding in too many objects; instead, let your decorating do the talking for you. If you want to display some of your own items, then ensure to group them and use the rule of thirds; group three objects together in a display rather than two. Groupings of objects which vary in heights, shapes and textures but are related to one another are the most effective for displays; for example, grouping three candles which are different heights but are the same colour.

When renovating a room, it is easy to feel overwhelmed, which is frequently why we shy away from decorating. However, we would recommend taking your time, planning your renovations carefully with a budget and enjoying the process – updating your home will add value to your property, after all, as well as giving you a beautiful home to relax in after a tough day at work.

Buyer Demand Soars

 

Recent data released by Zoopla has shown that 2020 has started in supreme fashion for the property market; with buyer demand up 26% when compared to the same period in 2018 and 2019. With such an influx of buyers, those thinking of selling their property have timed it well.  

Hometrack, the data research arm of Zoopla, have demonstrated just how much of an effect the general election and the promise of political stability have had on the property market; with demand increasing by over a quarter and house price growth across the major UK cities also hitting nearly 4%, the highest in two years.

Richard Donnell, Hometrack’s research and insight director, says: “This is partially due to fading political uncertainty; households who were holding off moving are now starting to return to the market and this momentum has been supported by low mortgage rates.

“The cities with more affordable house prices, such as Sheffield and Leeds, have seen the greatest increase in buyer demand as house hunters continue to focus on value for money this year.”

Statistics from HM Revenue show that the increase in buyer demand also had a positive impact on December’s property market, with an 11% increase in property transactions when compared to December 2018.

The research goes on to look at the strongest prospects for price growth throughout 2020, with Nottingham ranked as the number one location for prospective price increases. Edinburgh and Glasgow are ranked second and third respectively, and the traditional North South divide is set to narrow.

Breathing Life Back into your Entrance Hall

 

When it comes to your home, first impressions count. From the moment that you open your front door, your guests get a feel for the type of property that they are entering; chic, modern, classic or homely. Often the hallway is neglected as the place for coats and shoes, but it really does set the tone for your home, so we have put a few tips together to make the most of your entrance hall, no matter how big or small it may be.

1. Stick to neutrals
When it comes to your hallway, you want a bright and welcoming space – maximise what you have by using neutral colours such as cream and white as they will maximise the light that you have available. Mirrors are welcome in this area not just for a final check before you leave the house but also because they will reflect light around the area and give the illusion of more space.

2. Keep the storage practical and appealing
A hallway will always be the home for shoes, coats and miscellaneous items, therefore designing a space that doesn’t take this into account is a recipe for mess to be created. Embrace the storage and pick practical items, such as coat stands and shoe racks that are visually appealing; think of vintage piping that makes a statement or gloss white materials that sets a modern tone. Finding vintage items and painting them in similar colours to rooms that are close to your hallway is also a nice touch as it ties different parts of your home together as one.

3. Use the floor
In smaller spaces such as the hallway, you can be bold with your flooring choices, especially if the rest of your colour scheme remains neutral. Flooring such as bold geometric tiles will create an instant visual impact, are hardwearing and practical and will help to make the space feel larger due to the repeating pattern. If you want to make a smaller change to your flooring, adding a rug is the ideal choice as it breaks up the flooring area and is easily changeable.

4. Have stairs? Make them a feature!
If your hallway opens onto a stairwell then embrace the extra wall space and create a gallery of images and artwork that run up the length of your stairs; the frames going up the wall will create depth to your hallway and provide some visual interest. Use frames which vary in size, shape and style in order to create an eclectic yet cool feel, and if you are unsure of layouts then trace your frames onto pieces of paper first and use them to see which layout looks best.

5. Looking to add a pop of colour?
Although a hallway is often a simple thoroughfare, adding pops of colour can inject some personality into an otherwise neutral and practical space. Using window blinds that feature a bold print can be a nice way to add some interest into the hallway without adding clutter through accessories in the space. Your lighting in this space can also afford to be more bold; use brighter light shades or alternative shapes to create some visual interest.

Eco Friendly Homes Playing an Important Role

 

Climate change has received immense attention recently with urgent calls to reduce the contributing factors to carbon emissions, rising sea levels, and rising temperatures. The UK has committed to reduce its CO2 emissions to net zero by 2050; and this commitment cascades to all markets, including property. This commitment is a great achievement for the UK, with it being the first first-world country to pass law to such a commitment. 

Sadly, the amount of greenhouse gasses produced from heating properties has increased since 2014. Heating our homes accounts to a staggering one seventh of overall UK emissions. Our increased use of fuel can be resultant from heat escaping from properties through walls, windows and ceilings during winter. Luckily, the Government have called an end to the rise in fuel consumption and are devising a plan to battle the emissions producing more energy efficient homes. They are behind an initiative called Future Homes Standard, which is planned to be in full operation by 2025. 

Having more energy efficient homes is a great ambition for all. It will lead to lower carbon emissions, reduced energy bills, and upgraded housing. In 2025, all new build homes will have to abide by the initiative to have clean technology to heat homes instead of the current fossil fuel burned for gas boilers. The construction sector and developers are at the heart of this revolution with their designs crucial to meeting this goal. 

 
The Housing Minister, Esther McVey, said that “industry has told us some homes built using modern methods can have 80% fewer defects and heating bills up to 70% lower. Homes built using modern methods can be of higher quality, greener and built to last. I want to see a housing green revolution.” 2020 is set for an environmental transformation, with the property market a strong contributor to this.

Electrical Safety Regulations to come into place for Landlords

 

The first new landlord legislation of 2020 has been proposed, and relates to electrical safety checks. If you are a landlord of a property, then the proposed new regulations could affect you from 1st July this year.

Subject to parliamentary approval, from summer this year landlords will have to ensure electrical installations inspections and testing are carried out for all new tenancies, and for existing tenancies the regulations will be applicable from April next year.

In a bid to improve the safety of tenants across the United Kingdom, the Electrical Safety Standards will mean that electrics in properties should be safer and more uniform, with landlords required to produce copies of inspection reports to tenants, and the housing authority if requested.

David Cox, ARLA Propertymark Chief Executive, commented on the regulations; “We are supportive of this concept and believe it will create a level playing field for all agents and landlords as well as ensuring improved safety standards for tenants. Mandating inspecting and testing of every fixed electrical installation should have a limited impact on good professional landlords and agents in the market, many of whom already voluntarily undertake these inspections. We did raise concerns about the number of engineers available to undertake these reports by the April 2021 deadline but have received assurances from MHCLG this morning about capacity in the supply chain.”

If you are concerned about how the new regulations may affect your properties, don’t hesitate to contact us and we will be happy to advise you.

First Time Buyers Guide to Making an Offer

 

If you’re a first-time buyer and have begun the hunt for your first home, you may think that once you’ve found the right one you simply offer what they ask for; job done! However, when it comes to making an offer on a home, there’s a bit more work that should go into it than simply offering the price advertised.

You need to be confident when making an offer that you’re not going to be stung by an inflated asking price or take yourself out of the running by offering too low. To help you prepare, we’ve put together the following information to help you through this stage of the home buying process.

Get some advice
The first step and arguably most important step you need to take is speaking to an expert. If you’re a first-time buyer, then you probably don’t have a wealth of knowledge on how the market works and what you can and can’t afford. Get in touch with a mortgage advisor, get informed on how it all works and more importantly, find out what your price range is so when you do make a formal offer you can do so with confidence.

Research the local market
Once you know how much you’ll be able to spend, it’s time to get a better understanding of your local market. The more research the better. Take a look at what’s up for sale and find out what your budget will get you in each area.

Build a list of key features that your home will need, such as the number of bedrooms or a driveway. The chances of you moving into your dream property with your first move are somewhat slim; however, it’s important that you know what you’re looking for and how much it will cost you in each area.

It would be wise at this point to get in touch with a local estate agent. You can do as much research as possible, but a good local agent will always be a benefit as they will know the market like the back of their hand. This means that they can fill you in on what to expect from vendors and hopefully help you avoid any pitfalls.

Get out there and book some viewings
Now that you’ve done your research on what you want, what you can afford and what the market has to offer, it’s time to book some viewings and get out there. Things can move very quickly in the property market, so your previous work and research leading up to this point will come in handy as there’ll be no time wasted travelling to unsuitable areas or over-priced properties.

While viewing properties, be sure to check out the building's structure and not just its décor. Check for any damage such as cracks in walls or damp. Make sure you understand exactly what you’re getting into and have a good idea of the current state of the home as it can help form your offer.

When you find the right home, be ready to act!
If you’ve managed to find the right home, then it would be best to act quickly as there’s a good chance you’re not the only one eyeing up that house. If you’re ready to make an offer, consider a few things before doing so. How much do other similar properties go for in the area? Does the property need some repairs? Have house prices dropped slightly since the home was first put on the market? We’d all love to knock a few thousand off the asking price, but the seller isn’t going to make such a concession easily, so if your offer is lower than the asking price, you’ll need to demonstrate why.

The Final Steps
Now before you finally put your offer on the table, try and organise all the other pieces of the puzzle beforehand so you are ready to go as soon as it’s accepted. If you’re a first-time buyer then one of your major benefits is that you don’t have to organise selling your own home, but if you can organise such things as surveys and solicitors then it’ll make the process much smoother.

Saving for a House Deposit

 

For most of us, the most expensive thing that we ever purchase will be a property, and the prospect of saving for that all-important deposit can be rather daunting. However, the key to saving for that lump sum is simply good financial preparation and making a few changes to your outgoings which should reap big rewards. Take a look through our handy hints and tips and you’ll be in that new home in no time.

Speak to an expert
If you have made the decision that you are ready to buy a property, then an excellent first point-of-call would be to speak to an expert, be that a financial planner, mortgage advisor or a savings expert in your bank. It is important to get a detailed overview of your personal finances and speaking to an industry expert will provide you with tailored advice which suits your lifestyle, as well as being given some proven strategies to help you to save. Whether you’re a saver or a spender, it is important to get in to the right mindset to save and starting the process by speaking to an expert is a sensible first step.

Make a move
With the cost of renting often leaving many with little money to save for a deposit, making a temporary move can be a key factor in achieving a sufficient deposit. More and more people are moving back in with their parents for a period of 6 to 12 months; often paying no rent and economising through saving on laundry and food costs. If living with your parents is a truly unbearable prospect, then finding a lodger to live with you will also aid you in that all-important quest for a deposit.

Know your options
Did you know that you could buy a property with just a 5% deposit? Knowing what schemes and grants are out there will most certainly help you to achieve a house deposit. The Help-to-Buy shared equity scheme allows you to purchase a home with as little as 5% deposit and the government or developer (this is available for new homes only) lends you the rest of the deposit. Shared ownership schemes involve purchasing part of a property and then renting the rest, and although you would still need a deposit to get a mortgage for the part of the property you are buying, the deposit would be considerably lower; for example, to get a 90% mortgage on a 50% share of a £150,00 property, you would need only £7,500 for the deposit.

Make your savings work harder
Naturally, any changes you make will have one similar goal – to help you in saving more money more quickly and making these savings work for you should be a top priority. Open an ISA and use your yearly cash allowance so you don’t pay unnecessary tax. If you don’t already have one, open a savings account and save what you can, even if you think the amounts you are saving are inconsequential, they will soon amount to a worthwhile value. Shop around and see which bank offers the best interest rate on your savings, don’t just take one out with your current banking provider as finding a good interest rate could go a big way to helping you reach your goal faster.

Saving for a deposit can seem like a tall order, so making some sound financial decisions will be the key in to being approved for a mortgage and taking a step on to the property market. Get yourself into the right mindset where you are aware of why you are making some financial changes, remember that they are all short-term, and you’ll see those savings growing faster than you could have ever hoped.

Potential Landlords still keen to Invest

 

Given changes to stamp duty, tighter regulations and the introduction of the Tenant’s Fee Ban last year, it’s easy to assume that there’s little appetite in the market or encouragement for landlords to invest in Buy-to-Let properties. However, a recent large-scale survey has suggested that such a sentiment is far from reality.

Perrys Chartered Accounts asked 1,000 people and discovered that close to 75% of those questioned backed the idea of investing in Buy-to-Let properties, with that number rising to 83% when looking at millennials (those born between 1981 and 1996).

Why not invest?
So, what’s stopping them? The survey noted that increased tax and stamp duty rates are understandably off-putting, with Brexit unsurprisingly playing its part in making buyers think twice when deciding to invest.

What can be done to encourage investment?
Investors will likely all note that a decrease in stamp duty would be preferable, and a similar sentiment is shared in Perrys’ survey alongside a wider selection of tailored mortgage products. Interestingly, over one fifth of those questioned were keen to explore alternatives to long-term property investment with longer tenancies, such as short-term lets.

Preparing for the future
When it came to detailing reasons for wishing to invest in such properties, a willingness to fund a pension alongside replacing their current stream of income and building an inheritance were all noted as key factors for potential investors.

"It’s interesting that the younger generation still sees [buy-to-let] as a way to plan financially for the future,” noted Donna McCreadie, a Buy-to-Let tax specialist at Perrys. “However, there are many things to consider before jumping in, including stamp duty charges, how income tax might be affected and what the return on the investment is likely to be.

"Investing in a property is a long-term plan rather than a quick fix to financial freedom so it’s important to gather as much information as possible and speak to a professional tax specialist and mortgage advisor before making a commitment," she says.

Property Prices Rise at Fastest Rate on Record

 

Rightmove has reported property price increases from December 19 to January 20 of 2.3%; representing the largest-ever increase in prices over a 4-week period since it began its asking price index almost two decades ago. With the property market starting the year in such good health, 2020 is poised to be a strong year all round for housing.

In the 4 weeks from 8th December to 11th January, asking prices increased by over 2%, with the general election result having a strong positive effect on the market, thanks to the certainty of a majority government.

It is not just vendors who have returned to the market, with Rightmove also recording a 15% jump in enquiries over the same period, when compared to January 2019.

Miles Shipside, Rightmove director and housing market analyst, comments: “The housing market dislikes uncertainty, and the unsettled political outlook over the last three and a half years since the EU referendum caused some potential home-movers to hesitate. There now seems to be a release of this pent-up demand, which suggests we are in store for an active spring market.”

He continues: “The early birds are on it, with over 1.3m buyer enquiries to agents since the election, up 15 per cent on the same period a year ago. Some buyers are even further ahead and have snapped up a property already.”

Tenant Demand showing no signs of Slowing Down

 

The opportunities available for landlords on the property market are better than ever in 2020. Demand from prospective tenants has remained strong over the past year and is showing no signs of slowing down. This makes it the perfect time for landlords to expand their portfolio to meet the demand; with rental properties being snapped up in no time.

The considerable competition tenants are experiencing battling for viewings reduces the risk of homes being left vacant unexpectedly; leaving landlords with increased peace of mind. Findings reported by Home Let show that there has been an increase in rental value across the whole of the UK. The North lead this variation with the North West rental value increasing by a staggering 8.3%, and seven UK regions are each reported to have more than a 5% increase.

As well as higher demand, the rents increase can also be linked to a number of societal factors. There has been a resilient economy, higher wages, with low unemployment rate, allowing private tenants to still afford the rise in price. The Tenant Fees Act which was thought to move some of the fees from tenants to landlords, seems to have actually found its way back to tenants in the higher rent prices. There has also been a rise in the average age of renters, also adding to the demand.

David Cox, chief executive of ARLA Propertymark, said “looking ahead to 2020, we hope the government recognises the importance of increasing supply for tenants and uses it as an opportunity to make the market more attractive for landlords. This will encourage more landlords back into the market as well as ensure that tenants, including those who are most vulnerable, are not at a disadvantage in being able to find a suitable and affordable home to rent.” The rental market has shown great resilience over the past year despite the Brexit implications remaining unknown. The strength of the private rental sector is set to continue into 2020 conforming to the basic economic principal of supply and demand.

Does Anything Really Change now that Brexit has Started?

 

After nearly fifty years of membership, Britain has officially left the European Union and we are now in what is known as the ‘transition period’, which is scheduled to last until the end of the year when we fully depart from the EU. Now that we have left, does anything really change?

Essentially, not much changes for the next 11 months whilst a fully fleshed-out trade deal is brokered. The United Kingdom will be less involved in EU affairs, which means no more MEPs (Members of European Parliament) and no more EU summits, but for the majority of us no change will be seen.

Something that will change, and that has been well-publicised, is the return to blue passports rather than the current burgundy version. These blue-and-gold passports were first introduced nearly a century ago, and will be phased into production throughout the year, although burgundy passports will continue to be valid.

Alongside the new passport designs will be a series of commemorative coins, the first of which is a 50p coin now in circulation bearing the inscription “Peace, prosperity and friendship with all nations”. There are also further plans for other commemorative coins to be released in circulation, so check your change to see if you have one of the three million newly released coins.

Aside from these fairly trivial items, nothing palpable will really change this year in terms of travel, healthcare or working abroad.

British nationals may still queue in the “EU Arrivals” sections in airports, and no visas or extra documentation will be required for travel to Europe. Whilst in Europe, the European Health Insurance Card (EHIC) will still be valid up until the end of the year, however from 2021 this will no longer be valid.

The exit at the end of last month from Europe was more politically significant than having any day-to-day ramifications.

Which Property Type has Performed Best over the Last Decade?

 

Now that we are in 2020, looking back at the previous decade can help to shine a light on what we are to expect next in the property market. New research from Proportunity – a new equity loan startup firm – has shone a light on which properties have increased the most in value from 2010 to 2020.

Surprisingly, terraced properties have seen the greatest rate of growth nationally – with an average growth of 3.05%, compared to 2.9%, 2.35% and 2.33% for semi-detached, flats and detached properties respectively.

London has seen the highest rate of growth with the region’s averages outperforming most other parts of the country, with terraced properties in the capital of the country proving to be an outstanding investment decision. In the year 2000, the average price for a terraced property stood at £127,833 in London, however by the end of 2019 this had risen to £499,178 – a startling 290% increase.

“The 2010s were marked by the after-effects of the financial crisis, and then by Brexit uncertainty,” Vadim Toader, founder and chief executive officer of Proportunity, says:

“Despite these headwinds, we have largely seen growth across the board, but the clear winner is terraced housing – or more specifically, terraced homes in London – with buyers likely attracted to their historic characteristics and charm, as well as their limited supply, compared to new builds.”

If you are considering investing into a property this year, then there are three key aspects to keep in mind in order to be successful;

1) Plan for success; know exactly who your audience will be when you let the property out, or sell it on.

2) Gain a mortgage in principle; this will enable you to move quickly as investment properties will often have heightened levels of competition around them.

3) Work with a good estate agent; a reputable agent will be able to advise you on everything from the right area to invest in, to the potential yields you will be able to reap.

 

 

Region Name	flat CAGR 2010-2019	terr CAGR 2010-2019	semi CAGR 2010-2019	detached CAGR 2010-2019
East Midlands	0.74%	1.78%	2.11%	2.25%
East of England	2.62%	3.47%	3.59%	3.07%
London	4.93%	5.07%	4.33%	3.06%
North East	-0.50%	0.08%	0.47%	0.67%
North West	-0.04%	1.07%	1.43%	1.21%
South East	2.49%	3.40%	3.41%	2.84%
South West	1.34%	2.19%	2.35%	2.18%
Wales	0.50%	0.90%	1.01%	1.20%
West Midlands	0.65%	1.52%	1.96%	1.91%
Yorkshire and The Humber	-0.12%	0.91%	1.30%	1.32%
England and Wales	2.35%	3.05%	2.90%	2.33%