Prop articles

Post-pandemic predictions for the property market

After 18 months of uncertainty, the UK property market has seen some incredible highs and lows, from the sector closing and reopening last spring, to the impact of the stamp duty holiday on residential transaction levels.

 

For those looking to buy or sell in 2021, here are the top projections on what will continue to shape activity levels in the coming months.

 

House prices at a record high

 

Initially propelled by the stamp duty holiday, house prices have risen by 10.2% in the year to March 2021, with vaccine optimism now fuelling high demand levels.*

 

With a tapered end this September, homeowners can still save £2,500 on the first £250,000 of a property due to the stamp duty holiday, meaning that sales will continue to push up prices this summer.

 

If you haven't had a recent valuation of your home, talk to us today to gauge its current value.

 

The long-awaited return of overseas property investors

 

Travel has been made all-but-impossible for most travellers.

 

However, with vaccine programs being rolled out in other countries as well as the UK, we should soon see the return of overseas buyers looking for their next investment opportunities.

 

This will be key to help the market fully recover from the events of 2020, particularly for the construction sector.

 

Country locations increase in popularity

 

Remote working became the norm for most of the country's workforce in 2020, which gave people the freedom to move further afield.

 

As outdoor space went up in our estimations, the need for a perfect commute distance became less important, leading to more buyer activity as homeowners and tenants found themselves restless with their current accommodation.

 

More space for remote workers

 

For those whose job will continue to operate remotely, a home office or designated workspace is essential.

 

Larger properties are in short supply, making it the ideal time for homeowners to sell up.

   

Commercial spaces transformed into residential properties

 

Commercial spaces are being left empty, as many people are now opting to work from home, where able.

 

This means that many offices have closed permanently, leading the owners to convert them back into residential properties.

 

Overall, this could have a massive impact on the market.

 

 

Do you want to know your options buying or selling this summer? We'd like to offer you a consultation, visit our website to learn more.

 

 

*ONS

 

A guide to your property valuation

When it comes to selling your property, it's only natural you want to know all of the facts before beginning.

 

For the majority of us, owning a property will be one of the largest financial commitments we'll make in our lifetime, so making sure that you optimise on its value is really key in order to step further up the property ladder and afford that next dream home.

 

As your leading local expert, we've taken a moment to break down some of the important areas of your market appraisal, so that should you decide to ask an agent to value your property, you'll know exactly what you're getting from them.

 

 

What do we mean by property valuation?

 

A property valuation is an assessment of your property’s value, which takes into account a wide range of factors from the property type and size, to its condition and location, as well as seasonal and national trends.

 

Having a local agent conduct your appraisal can be a really useful advantage, as they'll know the local market and be able to target buyers within that area with the right marketing strategy to generate more viewings for your home.

 

Whilst it's estimated that a seller will have appraisals from two to three agents on average, it's vital that you choose representation based on their service proposition and success metrics, rather than opting for the highest valuation.

 

The aim here is to competitively price your property to achieve the best sale price in the best time frame possible. 

 

Set the price tag too high, and you'll elongate your stay on the market whilst deterring otherwise interested buyers. Set it too low and you'll lose out on its full potential value.

 

Why is it important to get an up-to-date valuation, even when you're not thinking of selling?

 

The market is constantly changing, so whilst you might not be ready to sell right now, it's recommended to keep an eye on how properties are faring near you.

 

If a lot of your neighbours are selling quickly, it can be a really good indicator that you'll be in a prime position to find a buyer at a price and time to suit you.

 

Prices have been increasing year-on-year, so knowing your home's value can also mean that when it does come time to sell and move on, you're already informed and ready to instruct an agent, saving yourself time and energy from the very start of your property journey.

 

Whether you're looking to sell right now or sometime in the future, talk to our agents to find out exactly how much your home could be worth. 

 

 

What’s driving property prices?

Asking prices continue to climb, with several key reasons to explain why this is happening after the emergence of a global pandemic.

 

 

A record number of people are looking to move

 

If you cast your mind back to a pre-pandemic time, the property market was faced with extraordinary pent-up demand due to Brexit concerns, as buyers and sellers put their plans on hold.

 

Before this pent-up demand could be fully alleviated, COVID-19 made its way across the globe in spring 2020, shutting down the property market along with most other commercial sectors.

 

The government were quick to launch schemes and support to encourage a return of activity, with tremendous success last summer, mainly driven by the extended stamp duty holiday.

 

Following all of these delays, demand for homes continues to dominate market headlines.

 

Over 180,000 properties were listed on Rightmove in the last month, with homes selling above asking price doubled from previous figures.

 

 

Stamp duty savings

 

Ending on June 30th, the stamp duty holiday caused a market rush, which meant that asking prices rose at an incredible rate.

 

Having extended the initial savings period once already, the government introduced a tapered end to the SDLT holiday, taking us up to September 2021 with £2,500 available on the first £250,000 of a property.

 

 

Record low interest rates 

 

With interest rates low, more people have been enticed to upsize to bigger, more expensive homes.

 

If you're looking to take advantage of better rates, we'd recommend speaking to a mortgage professional about your options.

 

   

Looking to sell? Book a valuation today.

 

 

Carbon monoxide campaign to alert ‘new landlords’

The government has launched their ‘Carbon Monoxide Safe 4 Summer’ campaign, which has been put in place to highlight how dangerous carbon monoxide can be.

 

As part of this initiative, the government are looking to educate the sector on the dangers, particularly with new and / or short-let landlords.  

 

 

What is carbon monoxide?

 

Incomplete combustion (when the fuel does not burn fully) can cause formation of odourless, colourless gas. This gas is carbon monoxide.

 

Carbon monoxide can displace oxygen in the human body and lead to poisoning. Because it does not smell and you cannot see it, it can be very difficult to detect.

 

 

Knowing the signs of carbon monoxide poisoning

 

Tension headaches are the most common symptom, however, other indicators of carbon monoxide poisoning may include: dizziness, feeling and being sick, tiredness and confusion, stomach pain, shortness of breath and difficulty breathing.

 

As these are relatively common symptoms, people may get them for any number of reasons, and this can make spotting carbon monoxide poisoning very difficult – especially at low level exposure.

 

 

What measures can you take to keep safe?

 

If you have fuel-burning appliances, a fireplace or an attached garage, you should look to install carbon monoxide detectors.

 

- Check or change batteries in carbon monoxide detectors every six months.

 

- Keep vents and flues free of debris.

 

- Never leave the engine running in a vehicle parked in an enclosed or partially enclosed space, such as a garage.

 

- Ensure any fireplaces or fuel burning appliances are fitted by a professional.

 

- At least once a year, have a qualified professional inspect your fuel-burning devices to make sure they continue to operate properly.

 

 

Learn more about carbon monoxide poisoning here: https://www.nhs.uk/conditions/carbon-monoxide-poisoning/

 

For advice on renting out your property, contact us today.

 

 

What to do if your home isn’t selling

There can be any number of reasons to explain why your property isn't performing on the market as you had expected.

 

If it's left you wondering ‘what went wrong?’, we delve into some of the most common causes that could be preventing buyers from connecting with your home.

 

Your home lacks kerb appeal

 

The outside of your home is the first thing potential buyers see when they turn up for a viewing. 

 

So, there’s no surprise that it can have a huge effect on a buyer’s decision to put in an offer. More than 68% of homeowners say kerb appeal was important in their choice of home.

 

The property isn't viewer-ready

 

It’s important when selling to keep your home looking viewer-ready, as well as to aim for a more neutral tone that appeals to a wider audience base.

 

Whilst it can be tempting to start splurging on new furniture and items for your new house, it can also have a negative impact on viewers if the room looks too crowded and cluttered.

 

The photos don’t do it justice

 

It takes just six photos for someone to decide whether they're interested in seeing more of a property.

 

If the first six photos don't represent your home in the best light, you could be missing out on the opportunity to showcase your property's core unique selling points, so it's worth raising any concerns that you have with your agent as well as making sure that you stage each room beforehand.

 

The asking price could be wrong

 

It's a common misconception that the asking price is behind every single stalled property sale. However, it's important to know where this is and isn't the reason for a home struggling on the market.

 

Having a competitive valuation with a local agent ensures that you are correctly priced and helps you to avoid any delays or complications.

 

Want a second opinion on the price of your property? Our team of experienced estate agents can provide you with a reliable free valuation, visit our website for more information.

 

The estate agent isn’t the right fit for you

 

Your estate agent should be doing all they can to sell your home, including keeping you updated and aware of the progress of your sale.

 

If you’re not happy with the service you’re being given, make sure you bring it up.

 

So, what are my options?

 

If your home isn’t selling, don’t despair. You still have a few options that will enable you to get moving.

 

Contact our team today to learn more about our offering and success metrics in your area.

 

 

Key questions you need to ask your buyer

Finding the right buyer can save you time, energy and disappointment.

 

If your chain falls through due to your buyer's financial readiness or uncertainties, you may lose out on other offers as well as the property you had intended to purchase.

 

Here are the top five questions you need to ask before accepting an offer.

 

Have they been pre-approved for a mortgage?

 

Being pre-approved for a mortgage means that a lender has already said their application will be accepted, speeding up the process significantly and reducing the risk of it falling through.

 

Do they have a home to sell?

 

Understanding your house buying chain is really valuable, as you'll be able to anticipate any weak points that could lead to your sale and / or purchase from falling through.

 

More sellers are now opting to rent in between their sale and new home, which means that the chain is much smaller and less likely to break.

 

Have they made an offer on another house?

 

If the buyer has put down a deposit on another property, they might not be fully committed to that purchase.

 

Are they a first-time buyer?

 

First-time buyers are often chain-free, so the process of selling your home should be quicker.

 

However, be careful not to make assumptions.

 

There may be other commitments such as a fixed term tenancy that prevents them from moving quickly, so always check when your buyer wants to complete.

 

What is their moving timeline?

 

Remember to ask what their moving timeline is like, as this will tell you how much they must do before they can move.

 

If their timeline fits in with yours, then they’re probably a suitable buyer for your property.

 

 

Need help finding the perfect buyer? Get in touch with us today.

 

 

Top home improvements for this summer

Over the last 18 months, the number of Brits undertaking DIY projects and renovations has jumped significantly, as we found new ways to pass our time in lockdown and improve our living situations.

 

But, which home improvements have the biggest impact to your property's value?

 

Extensions

 

Adding an extension is one of the most popular home improvement projects, adding up to 23% to your home's sale price.*

 

In fact, in northern regions over 2020, there was a double digit increase in planning permission applications for extensions.

 

Garages

 

Adding a garage is a great way to expand your home.

 

Having a property with secure parking can lower the price of your car insurance policies, as opposed to on-street spaces, whilst making your home more attractive to buyers.

 

Loft conversions

 

Loft conversions are a brilliant way of creating extra space out of an area that is rarely used, whilst contributing an additional 20% in value to your property's price.*

 

Due to COVID-19, people are looking for space for home offices.

 

A loft conversion is the perfect solution!

 

Conservatories

 

One of the great advantages of building a conservatory is that planning permission is more straightforward.

 

It also adds around 5% to the value of your house.*

 

Outbuildings and sheds

 

Green space has become massively important to us.

 

Having an outdoor space that can be used for storing gardening equipment or even as somewhere to relax is highly desirable.

 

Find out how much your lockdown improvements have added to your property.

 

Book a free valuation with us today.

 

 

 

 

 

*Nationwide, Homeowners Alliance and Conservatory Expert

 

 

Stay informed with changes to the Right to Rent scheme

First introduced in 2016, right to rent checks have been a core part of the check in process for landlords and tenants.

 

What is the right to rent scheme?

 

Right to rent is a government policy, which requires landlords to check their tenants’ immigration status.

 

It also means they must refuse to let a property to anyone who can’t prove they have a right to rent.

 

What changes have been made?

 

Significant changes were made to right to rent checks in order to facilitate these over the course of the pandemic, such as with an online checking service and changes to accepted documents.

 

 

These digital processes are temporary measures only that are to be permitted until September, i.e. video checks or accepting scanned photos in lieu of in-person checks.

 

However, some concern has arisen due to the imminent deadlines for both the EU Settlement scheme and video checks, meaning some applications could be in limbo until further clarity is provided from the government. 

 

For more guidance, please visit: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_

data/file/994998/Landlords_guide_to_right_to_rent_checks.pdf

 

 

Or for advice regarding right to rent checks and our lettings packages, contact us today.

 

Is it still location, location, location?

Faced with the prospect of a lockdown-free summer, buyers are anxious to move quickly, resulting in record numbers paying over asking price to secure their dream property.

 

With leading experts predicting that the house buying frenzy is here to stay, is location still as key as it used to be for buyers?

 

In the space of just 18 months, we've seen homebuyers rush to the countryside and back to cities again, as they've swapped lifestyles and jobs to better suit their own needs post-lockdown.

 

However, while requirements have altered dramatically for some, the popularity of online searches for the perfect location shows that this remains high on the list of buyer priorities.

 

So, what stands out as the perfect place for today's buyers?

 

- Access to areas of green, open space or gardens has become an immediate priority for many homebuyers.

 

- Now lockdown is coming to an end, people want to be close to cafes, restaurants, leisure amenities and shops once more to make the most of their freedom.

 

- Being close to the office is also becoming important again, as people adopt a hybrid style of working. This has also brought demand for a suitable working space at home, as well as a fast and reliable broadband connection.

 

- Being in a good school catchment will always be a priority for families.

 

- Buyers are doing their research into future developments in the area, like new schools, hospitals, shopping facilities or public transport links, as they can dramatically affect future house prices.

 

Location is a key factor in driving up demand.

 

If you’re looking to find the perfect location or sell your property, get in touch today.

 

 

Managing properties through the eviction ban extension

Over the course of the eviction ban for residential tenancies, the government have looked to balance support for tenants and landlords, helping those unable to meet their rent payments whilst recognising the strain this puts on landlords who may depend on the income.

 

As of June 1st, notice periods were reduced from six to four months for residential tenancies.

 

This is except for situations including anti-social behaviour, with a shorter notice period of two weeks.

 

Compared with homeowners, it's estimated that tenants are more than three times as likely to be behind with rent or bills, 6% and 19% respectively.*

 

With courts still prioritising hearings based on severity, it's important to look for a resolution to rent arrears or disagreements where able between parties.

 

As leading lettings agents, we facilitate communications between landlords and tenants to offer our expert services.

 

What about for commercial landlords?

 

Whilst the ban has lifted for residential agreements, the ban on evicting firms for unpaid commercial rent is to be extended for a further nine months.

 

Many businesses within the hospitality sector are yet to reopen and resume trading as normal, all the while accruing an estimated £5bn in rent debt.

 

 

If you need advice about the eviction ban, go to GOV.UK.

 

Want help managing your property? Talk to our team today.

 

*YouGov

 

Is selling at auction the right choice for me?

Selling at auction can mean a quick and easy sale, with excited bidders driving up the price of your home. But is it right for you?

 

Whilst we know selling at auction might not be for everyone, there are some key advantages if you've been thinking about this approach for your next sale.

 

Speed

 

One of the top reasons that homeowners opt for auctions is the speed of the process, which can take a matter of weeks once a property has been sold to complete.

 

Higher price

 

With your agent by your side, it's crucial to maximise the value from your marketing strategy.

 

The more interest you can drum up, the more competitive the bidding between interested parties, and all of this will ensure you receive the best possible price for your home.

 

Guaranteed closure

 

Unlike with traditional sales, there's a reduced risk of auction sales from falling through.

 

This is because the necessary checks and paperwork are completed beforehand, so when the gavel falls, the contracts have been exchanged.

 

Complete transparency

 

Each bid is made in public so the seller is fully aware of everything as it unfolds, and with a minimum reservice price, you don't need to worry about selling for under market value.

 

Who is best suited to selling at auctions?

 

Typically preferred by investors, homeowners looking to expediate the process also opt to sell at auction, where needed.

 

 

Want more information about selling at auction? Contact our team today.

 

 

Buying to become a short-let landlord

With a lack of certainty on travel restrictions, many Brits are planning to vacation closer to home this summer, giving investors the opportunity to break into the short-let market.

 

 

Where should you start?

 

Lasting anywhere from one week to six months, short-term rentals can be a great investment choice.

 

Before deciding where to invest, you first need to think about the purpose of your rental, for example, are there any cultural events, attractions or destinations that could prove in-demand and help you to secure higher and more consistent returns?

 

Location is everything within the property sector.

 

Opting for somewhere with great transport links or nearby to an airport could give your accommodation an instant USP that increases its rental value per night or week.

 

The next step would be to determine how involved in the management side of things you want to be.

 

Short-term lets require more work but give you greater flexibility.

 

The key consideration you need to make is how to avoid extended void periods where the property is vacant.

 

If you're looking to be highly involved in your lettings responsibilities, you might find that marketing your property across a multitude of channels helps you to build reviews and a trusted reputation, whereas you might find it beneficial to consult a letting agency if those tasks become too much.

 

To browse our properties and find your next investment, visit our website.