Prop articles June 2021

Demand for rental properties has reached new heights

In April, the lettings market saw a record-breaking number of enquiries from new prospective tenants, and the demand shows no signs of slowing down now we've reached summer!*

 

The average rent of a newly let property outside of London is 8% higher than in February last year, which equates to £68 more per month.

 

This increase in demand for rental properties has been influenced by the pandemic, as potential buyers have either delayed their plans due to their financial stability or concerns.

 

Furthermore, as the furlough scheme is relatively new, lenders tend to be reluctant to provide mortgages to applicants where their employment status is changing or uncertain, meaning that renting may be a more viable option for those still out of work.

  

 

Rent prices

 

 67 per cent of agents said they saw landlords increasing rent over the last 12 months. This figure has doubled since 2019.

 

At the same time, the number of tenants able to get a rent reduction decreased by 1.7% – the lowest recorded number since January 2020.

 

 

 

Selling up

 

The number of landlords selling their buy-to-let properties has decreased year-on-year.

 

With the market booming, this has remained consistent over the last seven months.

 

 

 

If you're looking for a lettings valuation of your property or need help managing your portfolio, contact us for more information.

 

 

 *Propertymark’s latest private rented sector report

 

Eviction notice periods now at four months

From June, eviction notice periods have been reduced to just four months for landlords, instead of the six months they were previously set at to protect tenants over lockdown.

 

In cases of extenuating circumstances or anti-social behaviour, notice periods will be lower.

 

After a year of restrictions and economic uncertainties, the change is part of a phased approach from the government to help the country regain normality.

 

Before the changes, there had been a ban on bailiff-enforced evictions to protect tenants during the ‘stay at home’ instructions.

 

The UK’s housing minister, Christopher Pincher, has continued to pledge support from the government for tenants, whilst balancing the needs of landlords.

 

He stated that crucial financial support will continue to be available, with the furlough scheme and universal credit uplift currently in play.

 

Many people in the property sector have agreed with the changes, stating that now is a sensible time to roll-back the measures as restrictions come to an end.

 

Whilst the ban on evictions has caused financial distress to some landlords, it seems to be regarded as a success in the wider picture.

 

We are committed to helping our landlords and tenants with their every property need.

 

If you have any questions regarding the reduced notice periods, or a general query or concern, get in touch.

 

 

Low cost changes to increase your home’s kerb appeal

Whether you are considering putting your property on the market or you are simply looking to increase the aesthetics of your front garden, there are a few low cost tips that can help you increase your home’s kerb appeal.

 

What to consider when upgrading your property’s exterior:

 

1. How much you’re willing to spend

 

Working out a budget will provide you with a clearer understanding as to what projects will be achievable.

 

If there is a limit to how much you want to spend on this area, prioritise the projects that you believe will make the most difference.

 

 

2. What are your main goals?

 

What are you looking to achieve from re-decorating? Are you interested in creating a green space outside your home or are you looking for practical solutions and storage options?

 

Painting your exterior adds 2-5% on your property's sale value, so if you're looking to move in the near future, it's important to know where to focus your attention for the best returns.*

 

 

Have you considered these options?

 

Refresh your front door

 

Your front door is the most noticeable feature when entering a property, so it’s worth considering an upgrade if it's peeling or looking tired.

 

 

Add your own design accessories

 

Door accessories, stylish house numbers, lights and retro flower pots are all on trend.

 

They are also very simple but effective ways of increasing the aesthetics of your front garden for any guests or prospective homebuyers!

 

 

Clear your garden

 

Last but not least, the lawn plays a key part in your home’s kerb appeal.

 

In fact, 67% of homeowners state that a tidy front garden would improve kerb appeal to them the most.**

 

If you’re looking to begin the process of buying or selling this month, contact our team today.

 

 

 

 

 

*Home Logic

**Goodmove

 

 

Top ten features that could bring down your property's value

Property prices have increased rapidly since the start of this year, with high buyer demand, vaccine optimism and stamp duty savings all key contributing factors to that growth.

 

Whilst it's really crucial to look for features or improvements to boost your property's price tag value before selling, it's just as vital to know what elements can have a negative impact.

 

 

Here are the ten most off-putting features that may decrease a property's value:*

 

1. Mould / damp (62%)

2. Pest infestation (57%)

3. Noisy neighbours (48%)

4. Unpleasant pet smells (37%)

5. Low shower pressure (28%)

6. Messy garden (28%)

7. Bad phone signal (24%)

8. Rude street name (14%)

9. Laminate flooring (13%)

10. Swimming pool / hot tub (10%)

Unsurprisingly, the presence of mould had the most significant influence on the value of a property, closely followed by insect issues and disruptive neighbours.

 

As these problems all affect a person's standard of living, it's understandable why they rank within the top three.

 

Whilst off-putting during a viewing, unpleasant smells, poor water pressure and an unmaintained garden by contrast are all factors that can be fixed at little to no effort.

 

With working from home becoming more popular for the UK's workforce, having a strong phone and WIFI connection is key.

 

If you'd like to know how much your home is worth right now, and what it could be valued at with a little more TLC, book a market appraisal with our team today.

 

 

*Hammonds Furniture

 

How valuable is your garden?

With the summer months promising a season of sun and property market surges, we're sharing guidance on how to make your gorgeous garden pay for itself.

 

If you'd like to increase your home's value, spending some time on the outdoor space is a must, with summer buyers and sellers extra vigilant about their green space options.

 

 

Here are a few improvements you can make:*

 

Add a building

 

Potential gain = between 5% to 15% value to your home

 

Over lockdown, many of the country's professional workforce found themselves stuck at home and searching for places to accommodate working from home, opting for a noisy kitchen or dark spare room where no other options were available.

 

For those homeowners and landlords already benefitting from having an outdoor building, many found that they could use that to their advantage to raise the value of their property.

 

Outdoor buildings can be used in many inventive ways, such as an office or gym.

 

 

Letting the outside in with bi-folding doors

 

Potential gain = between 5% to 10% to the property's value

 

Over the past few years, bi-folding doors have become a fashion symbol for homes as their popularity has grown massively.

 

Fewer homeowners have opted for conservatories, instead favouring extensions in other parts of their home to avoid taking away from their gardens.

 

However, as well as opening up the space joining your indoors and outdoors, bi-folding doors can portray your property as an ideal location to entertain guests or host summer events.

 

 

Add decking

 

Potential gain = up to 10% added to the value of your home

 

For those who routinely invite over friends and family members, this feature can give a garden multiple levels and different zones, so don't be afraid to be creative when looking at ways to maximise on space.

 

 

Just a splash of paint

 

Potential gain = 5% or around 12.5k in value depending on the project

 

Whilst at first it may seem like a daunting task, adding a lick of paint to your home’s exterior can make a big difference.

 

 

Are you curious to discover how much your home may be worth? Contact us today.

 

 

 *MyToolShed

 

 

How to avoid mortgage red flags as a prospective homeowner

Taking your first step onto the property ladder can seem daunting. There are a number of unfamiliar hurdles and legal requirements on the way to homeownership, but with the right support network, it can be efficient and pain-free.

 

According to recent data, around 35% of first-time buyers have experienced mortgage rejection, with certain brokers and lenders detailing unusual money mistakes as the main factor behind this.

 

 

To give you the best chance at getting approved the first time around, here are the red flags you should look to avoid.

 

Joke references when transferring money

 

What may seem like a joke amongst friends could turn out to be a very costly mistake.

 

Joke references can actually cause a delay in the mortgage process, so be careful and sensible when choosing your reference names.

 

 

Betting or gambling transactions

 

An occasional bet on something like the national lottery won’t have an impact on your application.

 

However, regular betting will be weighed up by lenders, who will decide if you are in a position to comfortably pay your mortgage each month.

 

Serious problems can arise from excessive gambling, but few take into consideration what the repercussions could be when looking to buy a house.

 

 

Making a big splurge purchase or giving money

 

Now, we aren’t telling you to not give money, but lending and spending large sums of money can raise questions from lenders.

 

The same applies to making a high number of purchases in quick succession, even if it is something for your future property, such as furniture.

 

Seeing less money in your bank than usual can cause delays throughout your mortgage process if calculations don’t quite add up.

 

 

Struggling to wrap your head around your mortgage options? Talk to the experts today, contact us for more information.

 

 

What's changed to safeguard homeowners and renters?

New laws have been put in place to place to protect homeowners, landlords and tenants. Here's a breakdown of what has changed.

 

 

1. Ground rent ban

 

Ground rent is money tenants pay their landlord to occupy the land a lease property is built on. You don’t have to pay any ground rent unless the landlord has formally asked for it.

 

Due to loopholes in some new build lease contracts, landlords can increase ground rent without offering any benefit to the tenants.

 

One of the new laws being put in place means ground rent charges are to be banned on new builds.

 

Tenants may still have to pay a small fixed amount of ground rent, but this fixed rate would not increase at any point during their lease.

 

 

2. Eviction notice periods reduced to four months

 

During the pandemic, notice periods were extended to six months as an emergency measure to safeguard tenants unable to keep up with rental payments.

 

This has been reduced to four months as the government look to balance support for renters and landlords.

 

For serious cases involving anti-social behaviour or a build-up of high rent arrears, this timeframe will be lower.

 

Because 45% of private landlords own just one property, they are extremely vulnerable to rent arrears, especially when they rely on tenants’ payments to pay their own bills.

 

 

3. More rights for pet owners

 

Previously, it was seen as the default option that rental properties did not allow pets. Updates to the modal tenancy agreement mean that this is no longer the case.

 

Consent for pets will be assumed and landlords will have to object to a written pet request within 28 days. To reject the tenant's pet request, a valid reason must be given.

 

This may include property size or surrounding issues, such as the property being in a block of flats.

 

 

4. Mandatory electrical checks for tenants

 

Mandatory electrical checks ensure that the property is safe for tenants to live in.

 

These inspections must be carried out every five years by law.

 

Once carried out, the electrical installation condition report will highlight any urgent work needed to ensure the property is safe.

 

Landlords who don’t carry out any repairs highlighted in the report will face a fine of up to £30,000.

 

 

5. Lifetime deposit

 

Ministers are considering introducing deposit passports to make renting easier.

 

This would mean renters could 'passport' deposits electronically, instead of having to pay a deposit for their next property while waiting for a refund from their former landlord. 

 

Passporting would allow a direct transfer of funds from the previous landlord to the new one on the day of the move.

 

The previous landlord would still be able to claim part of the deposit for any damages, if necessary.

 

 

For more information or guidance, contact our team.

 

 

 

Cities are making a comeback with buyers and tenants

The pandemic took a toll on the UK's previously bustling cities, with empty streets and closed down businesses becoming the new norm for many residents.

 

Due to changing lifestyles, it wasn't long before buyers and tenants turned their attention to rural living, with increased enquiries and searches for properties in more remote, tranquil locations.

 

In fact, for most of 2020, demand for rural properties outweighed demand for city properties, with countryside searches on Rightmove up 69%.

 

With the easing of lockdown restrictions and the prospect of the UK getting back to normal, we've now seen that interest reverse once more, with urban living now taking the lead.

 

What are buyers and tenants looking for?

 

From January 2021, flats located in major cities have seen a 39% increase in demand, says Rightmove.

 

This shows a strong contrast from 2020 trends, where ‘larger family homes’ were the most popular choice.

 

But what are the reasons for the sudden switch in demand?

 

As well as the lockdown roadmap, another huge factor behind the spike in interest for cities is the UK's vaccination program and successful rollout, as this has led to optimism for the housing market and consumer spending in general.

 

With a range of stunning properties available with us, why not discover your next home?

 

 

 

 

 

 

A third of homes sell for over the asking price

One in three properties sold for more than the original asking price in April.*

This has put homeowners looking to move in a better position than ever. What could it mean for you?

 

 

Here are a few top tips for selling your home this summer:

 

1. First impressions count

 

Don’t underestimate the impact that kerb appeal has on potential buyers.

 

A survey conducted by YouGov stated that well-maintained windows, front gardens and pathways can be the key to a quick sale.

 

 

2. Update the kitchen

 

The kitchen is the most valuable room in the house.

 

A bright spacious kitchen can be attractive to potential buyers.

 

A fresh coat of paint and removing any bulky appliances before viewings can make all the difference in creating a clean and spacious look.

 

 

3. Light and airy

 

Putting up mirrors in your home can make a room seem much larger and brighter.

 

Putting lamps in any dark corners will brighten up the room and create a warm glow that is inviting to potential buyers.

 

 

Contact us today to book your valuation.

 

*Property Reporter

 

 

Rental growth soars outside of London

Cities outside of the capital have witnessed a mixture of strong rental growth, high tenant demand and profitable yields, with expectations this will continue to benefit the lettings market over summer.

 

Earlier this year, rent prices increased by 3%, standing at an average of £780 per month.

 

According to Zoopla, rents are surging at an extraordinary rate amid high levels of interest, paired with the shortage of homes available to rent.

 

The North East saw a 5.5% increase in the first quarter of this year compared to the same time last year. However, despite this increase in rental prices, the region remains one of the most affordable rental markets in the country, with an average monthly rent of £559.

 

Other regions with the highest rental increase include the South West with a 5.3% increase, 4.8% in the East Midlands and 3.8% in Wales; a 10-year high for all three regions.

 

In London, rents are at a similar level as seen seven years ago at an average of £1,554 a month. However, there are signs that things could change very soon.

 

 

What are your options as a landlord?

 

Demand for homes to rent is now 59% higher than normal levels, as tenants look to rent ahead of their next move.

 

With supply unable to match demand, you could be in a good position to let your property quickly, as well as securing a higher rent than you have previously achieved.

 

Browse our latest buy-to-let properties or contact us for a valuation.

 

 

Five in-demand factors buyers are now looking for

Working and spending more time at home has caused significant changes to people’s property needs.

 

More than a quarter of the UK’s renters and homeowners (26%) have found that their property needs have changed since the outbreak of COVID-19.*

 

 

What are the key changes likely to stay on the priority list now restrictions are easing?

 

Gardens

 

Lockdown has caused a general desire for more space, meaning that many of us are seeking homes near public gardens or green areas.

 

Unsurprisingly, the demand for gardens has also increased by 74% worldwide, with UK buyers making it a top property feature to look out for.

 

 

Accessible Wi-Fi

 

Zoom and facetime have become the key to keeping in touch with loved ones, as well as playing an important role in remote working practices.

 

This means that having fast internet is essential for those looking to buy.

 

 

Natural lighting

 

Being confined to our homes throughout lockdown has given people a craving to create open, natural spaces inside.

 

Velux windows have increased in popularity due to the natural light and improved air quality they provide, whilst high ceilings also give a sense of greater space, and have seen higher search volumes of 15% over the pandemic.*

 

 

Home gyms

 

Lockdown has encouraged people to become more active in their spare time by taking up running and cycling where gyms have otherwise been forced to close.

 

Whilst sporting and leisure facilities have now opened up again, there's still a hesitancy from some previous members about when it is safe to return, making a home gym a staple feature of any home to attract attention from buyers.

 

 

Views

 

Having beautiful views is a big selling point, with balconies also increasingly more desirable now.

 

If you've been holding off on your next move, we'd like to extend our support. Contact us today.

 

 

*Wayhome

 

 

What is the outlook for the housing market? 

Compared to this time last year, the value of homes being sold in the UK has practically doubled in the first 15 weeks.

 

During this period, around £149 billion pounds worth of property transactions have taken place, with industry sources predicting this to climb even higher for the rest of 2021.*

 

How busy is the housing market to date?

 

Intense activity has led to there not being enough available homes on the market to keep up with demand, with supply in April nearly 30% below the levels recorded in 2017 and 2019.

 

How has this affected house prices?

 

Annual house price growth was at 4% in March, nearly double the 2.1% recorded for the same period last year.

 

The greatest increases have been seen in the northern regions, in particular: Manchester and Liverpool at 6.5% and 6.3%, closely followed by Leeds, Nottingham and Sheffield with a 5% increase.

 

However, in London – which is the region with the highest average house price – annual growth was only 2%.

 

What could this mean for you?

 

With the search for space remaining a top priority, three and four-bedroom homes are in high demand, with many being sold over their asking price.

 

This means that homeowners selling a family home have been in a prime position to receive offers in record time, often leading to a shortage of choice for those still looking to buy.

 

Are you on the lookout for a new property, or just curious to see how much your home could be worth?

 

Get in touch with a member of our team who will be happy to assist you further.

 

 

*Zoopla