Prop

3-bedroom properties in high demand

Property experts from Rightmove are urging homeowners to sell their three-bedroom homes, as high demand leads to an average selling time of just 45 days.

With the summer season well under way, the latest house price reports indicate high asking prices in the UK.

So, why is the housing market so hot right now?

Available homes are in short supply

Some homeowners have had to delay their moving plans over the last 18 months, causing an imbalance of homes on offer compared to buyers, sparking competitive bidding wars and driving prices higher.

This has also resulted in gazumping becoming more and more common, as buyers fight for the remaining properties.

New construction was halted

Between 240,000 and 340,000 new homes are needed every year to keep up with demand.

A shortage in construction materials, as well as delays and lockdowns within the sector have resulted in fewer new homes being built since the emergence of the pandemic.

Even though construction of new build homes has recently reached a 21-year high, the market is still struggling to make up for lost time and meet the needs of new home buyers.*

Mortgage rates are at a record low

Product choice has reached the highest levels in 16 months, with competitive rates and as many as 4,512 new deals to pick from encouraging deal-savvy buyers to consider their next move.**

Post-COVID race for space

After being stuck indoors for months, people are sick of seeing the same four walls.

Whilst many of us took to DIY renovations and projects to make our homes better suited, a significant number decided to look elsewhere altogether, wanting a bigger space with gardens and the room for a home office.

If you’re looking to buy or sell, contact us today to get started.

*Ministry of Housing, Communities and Local Government

**Financial Reporter

Why does market activity peak in August?

For the past 12 years, reports show that August has been one of the most popular months for home moving, with a third of movers choosing to buy or sell between June and August.*

Whilst typically homeowners would expect to fare best by listing earlier in the season, the same won't be said for 2021.

Fewer Brits are predicted to travel due to restrictions, meaning there's plenty of time to spend house hunting instead, as well as save towards deposits and moving costs over paying for flights and accommodation.

What’s the most popular day to move?

One in four pick Fridays for their moving day, giving themselves all weekend to unpack and settle in, with activity likely to peak ahead of the Bank Holiday weekend.**

With the stamp duty holiday ending 30th September, this could mean delays for buyers and sellers who aren't prepared in advance, particularly for those relying on moving companies for the big day.

19% of those who bought up to 2018 experienced delays due to the sellers vacating their homes late or not having funds clear in time, so it's important to communicate with other parties in your chain to establish any potential problems before they materialise.**

Why move this summer?

A summer move gives you the best conditions to market your property and have the best weather for the move in period.

If you'd like advice on why you should choose now to list your home or make your next move, we can help.

For advice on buying or selling, contact us today.

*Property Reporter

**Homeowners Alliance

Lettings market boom and what it means for landlords

The lettings market has had a record strong month, with reports of a decrease to the length of average void periods in most regions, as well as rising rents seen across the country.

In some parts, void periods have dropped by as much as 50% month-on-month, taking England's average from 22 to 16 days.*

How have rents changed for landlords?

After a year of uncertainty for landlords, with the eviction ban repeatedly extended, the news of rent growth in every region in June should signal a return of optimism for the market.

Certain areas saw an increase as high as 10%, whilst the average cost to rent a property in England now sits at £932.

In fact, average rents were higher this June than when compared to a pre-pandemic 2019.

Looking to take advantage of the increased rental demand? Here are our top tips on how to become a new landlord.

1) Understand your business

As with any new business venture, if you lay the right foundations, you have the potential to secure a comfortable financial future for yourself.

Most landlords only let one property, so it's important you know the local market and choose the best spot for your investment in terms of location, demand and opportunity.

2) Take the time to learn more about the legal requirements

There are a number of important regulations that a landlord must meet to protect their tenants, as well as themselves and their properties.

Taking the time to familiarise yourself with the sector will put you in good stead to build an established reputation letting in your area, which will ultimately help you to keep good tenants for longer.

3) Shop around for your buy-to-let mortgage

It’s important to find the right deal for you, which might mean considering a range of solutions before making a decision.

To get the best returns, you should speak with a trusted mortgage advisor who can point you in the right direction selecting your mortgage.

4) Decorate for a tenant, not for yourself

Just like when you're selling a property, you need to plan how to stage your rental property before listing it.

Whether you're wanting to let to families, students or working professionals, providing the right furnishings and neutral tones will create a blank canvas suited for future tenants interested in renting your property.

5) Who will be managing the day-to-day responsibilities?

This last step is what will really set your business in motion.

Choosing the right lettings agent is essential to protect your investments and safeguard your interests, as they'll be the liaison point for your tenants whilst overseeing all checks, changes and inspections.

To learn more about our property management service, contact us today.

*Property Reporter

How does disrepair impact your property sale?

Throughout the selling process, buyers are looking to assess the extent of the work needed to fix your home to their own standard of living, working out the time and money they may need to invest.

Whilst there are plenty of home hunters out there looking for their next project to tackle, many more will be looking for something that requires minimal fuss.

So, which home repairs can be the biggest deal breakers for buyers?

As the main cause behind serious structural issues, it's no surprise that damp ranks as the highest turn-off according to research.*

Keeping your house well ventilated in every season is crucial to safeguarding your investments, and with 63% put off by bad smells from pets or cigarettes, it's also worth purchasing diffusers before any viewings to keep your house smelling and looking at its best.

Having a messy garden also made the list, with 48% of people saying that it would put them off buying a property, as well as outdated electrics and poor natural lighting.

Aside from making any significant changes to the number of windows or doors in your property, the simplest way to increase the amount of light in your home is to eliminate any dark corners with warm lamps, giving the space the illusion of natural light.

Outdated electrics can be costly and time-consuming for buyers to update. So, if you’re looking for a quick sale, it might be worth getting any major issues fixed before viewings start to avoid a lengthy period on the market.

If you've completed any renovations or refurbishments since moving in, you should consider learning your home's current market value. Book your valuation today.

*GoCompare

Could shared ownership be the answer

This easy guide to shared ownership will help you decide if it’s the right option for you.

What is shared ownership?

Shared ownership schemes are run by councils, local housing associations and property developers.

If you buy with a shared ownership, you will own a percentage of your property for the amount you can afford, whilst paying rent on the remaining amount.

This gives you the opportunity to get on the ladder as an owner-occupier, benefiting from long-term stability but without overstretching yourself.

Purchasers are then able to buy more and more shares, in most cases, until they've reached 100% and are no longer required to pay any rent, just their mortgage.

What is a shared ownership mortgage?

There are affordable mortgage products for those wanting to buy into shared ownership, as the number of lenders accommodating this route to homeownership has increased.

You will also find that deposits are generally lower, as they will be based on the value of the share you're buying.

How is stamp duty applied to shared ownership?

Buyers can make a one-off payment when buying the property so that stamp duty won’t be added when buying further shares.

Alternatively, you can pay stamp duty tax in stages, initially on the value you own and then with further payments once you own 80% of the property.

Can I sell my shared ownership home?

You can sell your shares at any point, only with sole autonomy as the seller once you control the full 100% of the shares.

For more information on how to buy your first home, contact our team today.

It’s important to note that rules for shared ownership may vary across the UK.

New build homes at a 21-year high

Over 49,470 new build properties were completed in the first three months of 2021 – the highest figure recorded in 21 years.*

Why are so many new homes being built?

In 2020, building projects came to a sharp halt with the closure of construction sites as well as the country's housing market.

As measures began to be introduced to provide COVID-secure premises, work was once again able to resume in 2021, leading to a sharp increase in the number of house building plans in light of pent-up demand.

Who does this affect?

The pandemic has led to a year-long market boom, with prices skyrocketing and high buyer enquiry levels putting pressure on the market to deliver a greater supply of available homes.

With many of us weighing up our priorities, light and space have become more important, causing waves of home movers to uproot themselves in the search of more fitting properties.

Given this trend, it's no surprise that 81% of new builds in the first quarter were houses rather than flats, as larger family homes have become the most sought-after property type of 2021.

Why is this great news for the industry?

Typically, between 240,000 and 340,000 new homes are needed every year to keep up with demand.

The pandemic has meant production of these houses has had to slow down, meaning that the 21-year high is welcome news to developers and buyers alike.

Another key development within the sector is the conversion of commercial spaces into stylish, residential properties, as more companies establish hybrid or remote ways of working.

If you’re looking to buy a new build property, contact us today to see our selection of homes on offer.

*Ministry of Housing, Communities and Local Government

Ways to avoid gazumping with your property sale or purchase

With the property market heating up, gazumping is becoming all too common as demand outstrips supply.

In this article, we explain what gazumping is, and – most importantly – how to avoid it.

What is gazumping?

Gazumping is when a seller accepts a higher offer from another buyer after having already accepted one.

Between accepting an offer and exchanging contracts, a lot can happen, so it's important that both parties understand that neither side has a legal obligation until they have signed on the dotted line.

Whilst initially attractive on the side of the seller, gazumping could actually delay your sale, cost you more money or result in a fallen-through agreement in some cases.

Top tips to prevent gazumping

Look for the best mortgage rates

Knowing your options and being pre-approved by a lender shows you are a serious buyer, and a more reliable option than a gazumped offer that would only end up costing the seller.

Develop a good relationship with the seller

Having a good relationship with the seller is key to staying in their mind.

This means getting things done quickly and efficiently, as well as communicating any changes as transparently as possible.

Highlight why you’re a good candidate

Are you a first-time buyer? Paying cash? Or buying without a chain?

The less likely the sale is to fall through, the less likely you are to be gazumped.

Ask the estate agent to mark the property as sold

If the estate agent hasn’t marked the property as Sold Subject to Contract (SSTC), it’s a good idea to ask them, as it will minimise attention from other parties.

Need advice from a professional on your next sale or purchase? Contact our team today.

A look at what the stamp duty holiday has led to

Since its launch, the stamp duty holiday has led to phenomenal sales numbers for England's property market, with 50% more transactions in Q1 2021 compared to the previous year, pre-pandemic.*

Now, with the tapered end of the holiday in sight, we take a final look at what the property market has seen over the last year, and what is still to come.

Originally intended to stimulate the market after its spring closure in 2020, the SDLT holiday has triggered a house buying boom, with price surges up and down the country and buyers scrambling to put in offers at record speeds.

Even for buyers who may have faced higher property prices over this time, the value of buying with a smaller upfront cost meant that homebuying was an affordable option for 100,000s.

In fact, one survey suggested that four in ten Brits (39%) were able to take advantage of the government's initiative, with many finding themselves better able to save for deposits and moving costs with limited lockdown options.**

Following the end of the SDLT holiday on the 30th September, the rates will be as follows:

- 0% up to £125,000

- 2% on £125,001 - £250,000

- 5% on £250,001 - £925,000

- 10% on £925,001 - £1.5m

- 12% on any value above £1.5m

For advice about buying and selling in 2021, we'd like to offer you our support. Please contact us today for more information.

*Mortgage Introducer

**Show House

What’s next for the property market?

Having contributed to record-breaking sales numbers over the last year, we consider what's next for the property market following the approaching end of the stamp duty holiday.

For first-time buyers

Introduced by the government this spring, the 95% mortgage guarantee scheme has encouraged lenders to offer lower deposit options, paving the way for the return of first-time buyers wanting greater flexibility and freedom becoming homeowners.

This scheme is set to close to new applicants in December 2022, with the government’s total investment expected to reach over £20 billion.

Flexible mortgage schemes

In support of the government's help-to-buy option for first time buyers, we are seeing banks and developers coming together to create other schemes that could essentially replace the government’s help-to-buy scheme when it comes to an end.

An example would be the Deposit Unlock Scheme, which provides buyers with a package that allows them to buy new build homes up to a value of £330,000, with a 5% deposit and 3.5% mortgage rate – fixed for two years.*

High street banks are also beginning to offer 5% mortgages, which offers to lend buyers an extra 10% of a traditional 15% deposit, requiring buyers to only front up 5% themselves.

Looking ahead

Existing and new incentives will boost a drive in the first-time buyer market and are likely to have a similar impact as the SDLT holiday.

Other new schemes could involve cuts to SDLT rates, particularly with second home purchases in order to get this section of the market moving again.

Are you looking to buy this year? Get in touch with us today.

*Newcastle Building Society

Why is now the time to buy a second home?

After a year without the ability to socialise or travel, many Brits have been able to save a considerable sum, with savvy savers now wondering what to do with their sizeable nest eggs.

As many as 74% of millennials are more interested in the idea of investing following the pandemic,* with property remaining one of the key areas to see returns.

Before buying your second property, have you asked these key initial questions?

What's the purpose of this investment?

It's worth considering if you're wanting to pursue a high involvement strategy, flipping homes for profit, or you'd like to opt for a lower involvement and more long-term plan, such as letting or owning a holiday home.

Having an in-depth discussion with a local agent will help you to determine your financial position, as well as the plan most suited to your goals and interests.

The hidden costs of running your second home

As with all undertakings that require a financial and personal commitment, you need to make sure you have a thorough understanding of the responsibilities and costs.

When becoming a landlord or holiday home owner, you need to think about insurance and bills, as well as how you plan to manage and grow your rental income.

Likewise, flipping properties can come with considerable bills to pay if you make hasty decisions along the way, so you should have a budget that's realistic and practical.

Unoccupied insurance for a holiday home

As holiday homes are usually unoccupied for the majority of the year, you will find that a regular home insurance policy won’t cover you.

This is because serious damage like a break-in or burst pipe can only be minimised if there is someone in the property.

It’s important you are upfront with your insurer about how often you will be visiting your holiday home.

Am I insured if I rent my property out?

If you decided to rent out the property, you face extra risks.

However, for some, letting could be a big part of why they bought the property in the first place.

It would be recommended to speak with an insurance broker, as this will ensure you have full coverage as a landlord whether the property is being occupied by tenants or not.

For any help or advice when it comes to property, speak to us.

*Finder.com

With home break-ins high over summer, are you covered?

As a landlord, it is vital that you properly safeguard every aspect of your portfolio.

Should there ever be issues with collecting rent, damage to your contents, a home emergency, or an injury that you are liable for, you could be out of pocket and unable to afford the costs of maintaining your property.

There are policies tailored to the risks landlords face that can provide vital cover for realities of working in property ownership. Find out more below.

Landlord liability

Should a tenant injure themselves on your property from such hazards as loose tiles or an ill-fitted carpet, then you could be held liable. If the injury leads to a lawsuit, a liability policy can assist you with:

- Your legal costs in defending a claim.

- Damages awarded to the claimant.

- The claimant’s legal costs, if you are found to be at fault.

Are your properties furnished? You might want to consider Contents Insurance

It is standard practice for most landlords to let their properties on the condition that the tenant can prove they have a contents insurance policy ready to be put in place on the day of the move.

However, if your properties are furnished or semi-furnished, you might want to think about getting your own policy.

Apart from Christmas, the highest surge in burglaries happens across summer, whilst every other month sees a low trend in attempted break ins.*

Leaving doors and windows open or unlocked due to the rise in temperature can invalidate claims made in the event of theft, so it's worthwhile to encourage your tenants to reduce criminal opportunity where possible and show caution with any valuables.

Do you have a buy-to-let mortgage?

Most landlords will usually have a buy-to-let mortgage in place.

Many providers will also insist that you have loss-of-rent insurance to cover your rent should you not have a tenant for an extended amount of time, or if your current tenant can’t (or won’t) pay the rent.

Loss-of-rent cover also protects you, should a fire or flood make your property uninhabitable. Your tenant will no longer be required to pay you rent, which could put your mortgage in jeopardy.

*West Yorkshire Police Department