May content

5 ways to make your property search easier

We all know that searching for a home can be quite a long process. Studies have shown that it can take up to 3-4 months, with most buyers viewing a total of 8 houses on average before finding the house that’s right for them. The only way to make it easier for yourself is by doing a little research and preparation before you dive in, so with that in mind, we’ve put together 5 simple steps to make your hunt for a home that little bit easier.

Figure out your finances
Before your search begins, you absolutely must figure out exactly how much money you have to play with, taking into consideration the full cost of buying a home. It’s not just the cost of the property, but also the cost of surveys, stamp duty and more.

There is no such thing as ‘too early’ when it comes to looking at mortgages and speaking with financial advisors. While setting up meetings and discussing your finances with a mortgage advisor can be time consuming in itself, once you’ve determined your maximum spend it allows you to greatly refine your search and also puts you in a stronger position further down the line when it comes to negotiating.

Separate your wants from your needs
You probably already have an idea in your head of what your dream home looks like, what features it has and the type of area its located in. Unfortunately, for most buyers finding your dream home takes a lot of luck or a lot of money, so you need to decide early on which features are the ‘must haves’.

Every buyer’s criteria is different, whether it is the size of the kitchen, being close to a good school or the number of bedrooms. A successful home search does require a little bit of compromise; separating your wants from your needs allows you to begin your search with a lot more focus, saving you time in the long run as you won’t need to book an endless series of viewings.

Take advantage of all the information available to you
In the past, a lot of property information such as how much it previously sold for, floor plans and general statistics for the area were not as easily accessible as they are today. There are plenty of websites that allow you to do that extra bit of research, allowing you to make more educated decisions throughout the process.

Find out what the average price is for homes in your favourite area and delve a little deeper; take a look if a home you have your eye on has a surprisingly high flood risk, for example. Buying a home being the biggest purchase you’re ever going to make, so the extra research you put in could not only protect you from hidden disasters in the long term, but also means you’re able to be a little more brutal with your shortlist as you take advantage of the wealth of information available online.

Get in touch with us!
While the internet does hold plenty of useful information on the property market, if you’re looking for in-depth knowledge of the local area, then your local estate agent is always your best bet. By speaking to your agent, you can get some more information on the current state of the local market, which is incredibly valuable information if you’re moving to a new area.

If your essential property criteria include the commute to work or the good local schools, a good agent will be able to bring even more focus to your search and help you avoid any homes that are unsuitable to your needs.

Be thorough, be brutal
Once the viewings begin it’s important that you gather as much information as possible during your time in the property. Take notes, take photos and ask plenty of questions. After a few viewings you may find that all the properties begin to blur together in your memory, so the more information you collect the first time round, the more time you save from not having to make repeat viewings to feel the place out.

At this point, you’ve already made a list of the things you can’t live without, so to speed up the process, you should also create a list of things you can’t live with. If your shortlist only contains 3 or 4 properties, then it may be best to take a slightly more lenient approach when discovering a room will need completely redecorating. However, if your shortlist of homes is in the double digits, you’d be wise to be thorough and spot any deal breakers early as a long list of homes will require you to be brutal, unless you want to spend months going from viewing to viewing.

Overall, the key to a successful property search is to make sure you’ve done your homework and have as much information as possible to make an educated decision when you see ‘that’ property and your heart takes over. Being able to determine exactly what you want early can be a massive help and by combining the online information with the knowledge of your local expert, you can make finding a home a much smoother process.

A guide on renting to students

Those looking to invest in the student rental market could find high returns, especially if you own a property that is close to a university. However, there are a few things you will need to consider when it comes to renting to students:

Tenancy Agreement
We always advocate for the use of tenancy agreements, no matter the type of tenant. The signed document clearly details what is expected from both parties and, in the event of a dispute, it can be used to settle any disagreements.

However, in the case of landlords who wish to let an entire property to a group of students, you might wish to consider a joint tenancy, which requires all the students residing in the house to sign the same agreement. The document will advise the tenants that, as a collective, they are responsible for the costs of the property. For example, if one of the tenants fails to pay their share of the rent, it is the responsibility of their roommates to cover the costs.

If you are renting each bedroom individually, an individual tenancy agreement will suffice.

Do Students Pay Council Tax?
Students are exempt from council tax; however, they will be required to apply for an exemption certificate from the council.

Beware, if you are unable to prove your property was solely occupied by students, then you may be asked to pay the outstanding council tax. We would advise you assist and encourage your tenants in getting the exemption and ask for photocopies for your records.

Furnishings
It’s a given that students are unlikely to move in with their own furniture. In most cases, they will be looking for a furnished property. Items you might want to consider include:

• Washing machine
• Fridge freezer
• Cooker
• Carpets/curtains/lampshades
• Beds
• Wardrobes
• Desks and chairs
• Sofa
• Vacuum cleaner
• Lawnmower
• Bins

Make sure each tenant signs a detailed inventory to safeguard your furniture for future tenants.

Anti-social Behaviour
This aspect of the role can come as a surprise to some landlords! If your students are behaving in an anti-social way and are annoying the neighbours, it is your responsibility to improve their behaviour. If the behaviour continues, the local council may get involved.

The good news is, most universities can assist you in talking to your tenants, and it’s always a good idea to have regular contact with your tenants to deal with any problems quickly.

Anything Else?
Alongside these additional niche responsibilities, you will still be expected to carry out normal landlord responsibilities, such as purchasing a home insurance policy, ensuring your property meets gas & fire safety regulations, adhere to deposit protection rules, and also follow the right-to-rent legislation.

Getting the best deal on your mortgage

It’s practically step one on every homebuyer’s to-do list; get your mortgage approval so you know what your budget is for your property search. However, don’t just stick with your own bank or jump at the first mortgage which is offered to you; follow our tips to help you to get the best deal on your mortgage.

Deposit
Often the biggest hurdle to buying is the deposit itself, but spending more here should save you money in the long-run; the general rule is that a larger deposit will result in a more favourable rate as well as having a favourable impact on credit scores with lenders. With mortgages categorised according to their loan-to-value (LTV) – the percentage of the mortgage as a value of the property – the more equity you have, the lower risk you are to the bank.

Shop Around
It may seem like the easiest option is to simply take out a mortgage with the same bank that you conduct your personal accounts with; however, this will restrict your view on the mortgage market to a single lender. Looking around independently will help you to learn about the mortgage jargon and understand exactly what kind of proposition will suit you best. Comparison services will do a lot of the legwork for you, but remember that some of these require services charge, so if you can, find a no-fee broker.

Avoid bumps in the road
Having your documents in order seems like common sense, but a sure-fire way to having your application declined is to have inconsistencies in your paperwork. If you have recently married or changed address, for example, ensure that your documents reflect the correct details. Whilst you’re updating and verifying your documents, it’s certainly worth registering for the electoral roll as this has a huge bearing on the scoring system for lenders.

Fixed rate or tracker?
Put simply, a fixed rate mortgage locks in an interest rate for a specified time period, whereas a tracker mortgage has a variable interest rate which follows, or “tracks”, an external interest rate – frequently the Bank of England’s base rate. Deciding on which mortgage variant to take out depends on your financial situation; if you can afford to potentially pay higher mortgage amounts should the rates rise, then taking out a tracker mortgage could give you a lower starting rate to begin with. Alongside this, it also allows the opportunity that over the duration of the mortgage, you end up paying cheaper than if you had a fixed rate. If you need to know exactly how much you will be paying each month, then a fixed mortgage could be the best choice to avoid any unwelcome surprises – even if the initial rate is higher than other offerings.

Credit score
Having a great credit score is a huge help when it comes to getting an attractive mortgage rate, as lenders are keen to lend to those with a good history. Also, if you have a smaller deposit then it is essential to have an impeccable credit score, whereas having a larger deposit will result in more lenience if you have a lesser credit score (although you may struggle to achieve “high street” rates). If you want to cultivate the best credit score possible then there are a few steps you can take immediately; ensuring any outstanding debts on credit cards etc. are paid in full each month to show a strong payment history and clearing any outstanding debt are a good place to start.

How should landlords furnish their properties?

Most landlords will have to deal with the dilemma of whether to furnish their properties or not at some stage. Given that roughly half of all prospective tenants in Britain are happy to live in an unfurnished property and provide their own chairs etc., and even landlords that provide furniture do not generally raise their rent, the question is whether it’s really a worthwhile process. 

If you’re keen to find out if there’s even a need to furnish your property, then start by chatting to the agent that you’ll be letting the home through. What sort of potential tenant is this property likely to attract? For instance, a family or couple will likely prefer to move into an unfurnished home; a single tenant could prefer part-furnished and students would expect a home filled with furniture, including a bed and wardrobe in each bedroom alongside sofas, chairs and a dining table.

Hedge your bets, if you’re concerned; advise the agent to promote the home with a clear note to advise renters that you can provide some furniture on request, depending on the demands.

If you do decide to furnish your property, then it is absolutely essential that you provide fire resistant furniture. Thankfully, most modern furniture would fall into this category, but again, it’s vital to confirm prior to purchase and moving into the property. This isn’t just for the added safety of your tenants; it’s a regulation for landlords that must be complied with.

When it comes to choosing the quality of the furniture that you want to provide, we suggest avoiding the cheapest options. Not to say that chairs or tables purchased from the likes of Ikea are wildly inappropriate or unsuitable, but you have to keep in mind that whatever you purchase will be subject to consistent use over the next several years. Spending a little more on something a little sturdier and higher quality could mean the difference between having to purchase new furniture after one or two tenancies as opposed to several.

How to add value to a property

When we decorate our properties, it is often driven by personal preferences in order to make a space fit into our own idea of what is stylish. However, if you are not just looking to decorate a space but to maximise the potential value of your property, then read our guide which explores the best ways to add worth to a home.

Solve existing issues
If you’re thinking of adding value to your property then don’t jump straight to improving the aesthetic of particular rooms in order to gain the much-lauded “wow factor”; instead make sure that your property is structurally sound. It may have less cosmetic impact, but a house with a leaking roof, subsidence or damp will be severely hindered in achieving a strong asking price due to the perceived costs and effort in fixing the issues. Take the time to assess your property and ensure there are no major defects, and this will give a solid foundation for your property to achieve the best price on the market as buyers will not be scared away by problems, nor will they be able to barter the price down.

Central issue
Take a look at the central heating system in your house - does it look modern and fit-for-purpose or is it on its last legs? If your central heating isn’t quite up to scratch, then replacing this is a sure-fire way to add value to your property as it is another issue which has the potential to put-off potential buyers. Although the initial outlay for the central heating refit may seem high, you should more than recover these costs when selling the property as it is another key point which will assure buyers that your property is well-cared for.

Extra space
Adding additional living space will always attract potential buyers as this offers them versatility in the way in which they will use the property; however, before you convert that loft or garage then we would recommend doing a little research. A converted loft can add thousands to the asking price of your property, so it is certainly something to consider – before you undertake this do take a look at similar properties in your area and do some investigation as to what the top selling price has been lately. There will be a ceiling price to the properties in your area, and therefore before you add a room, make sure that there is the potential to recoup the cost in the asking price of the property.

Decoration
If you’re looking to add value to your property without any major outlay, then picking up the paintbrush could be the answer. Freshen up any paint that has seen better days around the house and do the same in the bathroom, checking on any sealants to ensure they are crisp and clean. Clean up a few simple defects and potential buyers will see your property in an entirely different light, willing to pay more for a home that they perceive to be in excellent condition. This should extend to the frontage of your home, so ensure lawns are mowed and outside areas look cared for.

Kitchens and bathrooms
That old saying that homes are sold due to their kitchens and bathrooms is true, to an extent. Having a modern kitchen and bathroom will add considerable value to your property, as well as generating much more interest from potential buyers. If you don’t want to invest in a brand-new kitchen and bathroom, then update your current spaces in order to make them more sellable. Kitchen cabinets can be painted to modernise them, and changing the door handles to something more sleek will also help to create the feeling of a newer space in the kitchen. In the bathroom, refresh the paint on the walls, keeping it as neutral as possible, and ensure that the space is bright and airy – add mirrors to make the space feel bigger, and use accessories to add colour into the space.

Landlords return to the market

Three years on from the Government passing buy-to-let tax and legislative changes, which resulted in a 3% surcharge on Stamp Duty on the purchase of additional homes also encompassing buy-to-let properties, it appears that landlords are now returning to the market.

Statistics from an independent estate agent have indicated that there has been an almost 8% increase in the number of landlords registering to buy over the last month, showing that the feeling in the market is overwhelmingly positive. With investors both national and international still wholeheartedly positive about the state of the market in the United Kingdom, according to SevenCapital’s Brexit survey, lettings would appear to be a strong bet once more.

Demand for city centre properties is now at an all-time high; in Birmingham, for example, between 2011 and 2016 around 8,000 homes were completed, whereas demand was closer to 20,000 showing the extent of overdemand and undersupply. This provides a stellar opportunity for landlords looking to invest in a city-centre location in order to reap the highest possible rental yields.

Rental yields by room, an increasingly popular option for landlords, are showing extremely positive values year-on-year; with the country as a whole reporting an average rise of 11%, according to the rental index from Ideal Flatmate.

With the recent spotlight on the rental market from the Government, renters and potential renters will be feeling buoyant in terms of their rights and responsibilities which should embolden them to rent a property, whereas previously they may have been more hesitant to take the step. This newfound confidence amongst renters should provide further comfort to landlords, knowing that there is a strong contingent of potential renters ready to move into their property.

One in six parents remortgaging for their children

With interest rates remaining incredibly low and competition amongst lenders producing some of the most favourable finance options ever seen, many are remortgaging in order to benefit from cost savings. Rather than simply easing the financial burden, however, recent research has shown that many parents are remortgaging in order to gift the extra money to their children.

 

Price comparison website MoneySuperMarket has found that one in six parents who remortgage their home then gift some of that extra cash to their children, with the average financial contribution standing at £9,050 per child and nearly 10% of parents giving over £20,000.

More than a third of the children who receive the financial gift utilise it as a deposit for a property, whilst others use it to go travelling (11%), buy a new car (11%) or pay for ‘everyday essentials’ (9%).
Rachel Wait, consumer affairs spokesperson at MoneySuperMarket, commented: “Our research found that 15% of parents released equity when they remortgaged to help their children. However, you’ll only be able to do this if your property has gone up in value and you’ll need to be sure you can afford to keep up with your new repayments.

“It’s also important to factor in the costs associated with remortgaging, such as arrangement fees which can be as much as £2,000, as well as legal, admin and valuation fees. Try to be realistic – only release equity to help your children with life events if you can really afford to do so.

“Also keep in mind that because a mortgage takes so long to pay back, remortgaging may not be the right option for everyone – there may be cheaper ways of getting a cash sum. It’s important to look at all options and shop around before making a decision.”

Property prices up in April

Recent research from mortgage lender Nationwide has shown that house prices picked up in April, with the average asking price for homes now standing at £305,449. This is a jump of £3,500 from the previous month, marking the largest month-on-month increase for over a year and indicating that the market is now experiencing some uplift from the delayed Brexit outcome.

 

There is some sentiment in the market that buyers and sellers are now fed up with all things Brexit, hence the uptick in market activity following the delay of Brexit which had previously been scheduled for March 29th.

Robert Gardner, an economist with Nationwide, said first-time buyers appeared to be defying the jitters around Britain’s still uncertain departure from the European Union, helped by low interest rates and the lowest unemployment rate in more than 40 years.

“While the ongoing economic uncertainties have clearly been weighing on consumer sentiment, this hasn’t prevented further steady gains in the number of first-time buyers entering the housing market in recent quarters,” he said.

Estate agents often note a ‘spring bounce’ at this time of year thanks to the market entering a period of buoyancy, but the increase seen this year is still the biggest increase for the month of April for three years.

Brian Murphy, Head of Lending for Mortgage Advice Bureau, said: “It's not exactly surprising to see that according to this set of data, the family homes market remains resilient.

“After all, for those who need more room to accommodate growing offspring, or indeed have to relocate due to schooling, the decision to move is rarely a discretionary one.

“Regardless of any ongoing Brexit uncertainty, today's report points to the right time being now for these particular purchasers. This is of course understandable as, if you ask most parents, there comes a point when quality of life becomes the priority, rather than the consideration of political headlines.

“The good news is that in areas of the country where asking prices appear to have remained steady - or as the Rightmove report suggests, vendors are pricing keenly in order to attract a buyer - the competitive lending market continues to provide support.'

Supply and demand outstrips Brexit concern

With the Brexit date being pushed back once more, it would appear that supply and demand for property is now the driving factor in the market, with Brexit taking the back seat in terms of market-driving factors.

In a recent survey from property investment company SevenCapital, nearly 69.5% of investors continued to invest in the United Kingdom despite the spectre of Brexit. Indeed, this confidence in the United Kingdom property market is echoed by international investors, with nearly 95% of the Hong Kong respondents believing that Brexit isn’t a critical factor in their investment decision.

SevenCapital points out that the Sterling has risen in value – a better indicator of fiscal stability – and this outweighs any potential impact that Brexit may have levied upon the market. With the average price of properties increasing last month by over 1% or £3,347, according to Rightmove, then house prices are also reflecting this upturn in the market.

In terms of the rental market, rental yields have also grown in recent months with the best performing areas in Birmingham and Manchester seeing yields driven up as much as 10%. With new changes in the rental sector such as the Tenant Fee Ban and Section 21 changes, tenants and potential tenants should be feeling more empowered in terms of their rights which should encourage more renters into the market.

Despite the headlines that Brexit has provided of late, it is evident that other factors are driving the property market, both sales and lettings. A key point to note is the lack of housing supply and increased demand of late with this duality keeping the market buoyant, despite any political uncertainties. With first-time buyers now at record levels and keen to buy, there is a whole new swathe of potential buyers entering the market which is creating an extremely competitive sales environment.

The abolition of Section 21

 With the recent reforms taking place in the lettings market with regards to the Tenant Fee Ban and the Fitness For Human Habitation Act, you would be forgiven for missing the recent news from the Government that will make it more difficult to evict tenants.

 

Plans to abolish Section 21 – the right for landlords to evict tenants from their property after their fixed-term contract has come to an end, and with no need for a reason to be given (as long as eight weeks’ notice is allowed) – have caused some uproar in the lettings community with landlords concerned and tenant campaign groups hailing it as a “massive victory.”

The main concern highlighted by landlords have been around difficult tenants in their property and how they will now be able to evict them. The short answer is that once Section 21 is abolished, landlords will have to enact Section 8, which has more stringent rules with regards to evictions, as highlighted below.

A tenant can only be evicted with Section 8 should they;
Fall into rental arrears
Are involved in criminal behaviour
Are involved in antisocial behaviour
Have broken terms of the rental agreement (such as damaging the rental property)

The Government intends to add some caveats to Section 8 in order to make it more fit-for-purpose in the absence of Section 21, such as the fact that landlords will also be able to evict tenants should they wish to sell the property or move back in to the dwelling themselves.

Of course, despite the news that this Government proposal has created, the actual likelihood of a landlord evicting a tenant is low as that is counterproductive. Landlords do not evict tenants for no good reason as that is simply not good business; instead, the motivation to find and retain tenants is the modus operandi for every landlord in order to get some returns on their investment. So, if you are worried about the potential changes which the abolition of Section 21 evictions could cause, then rest assured that should the genuine need to evict a tenant arise, you will still have the power to do so.

Common mistakes made by first-time buyers and how to avoid them

There’s no denying that purchasing your first property can be an incredibly exciting process. Everything from your first viewing to deciding which bread bin goes best with your new kitchen can feel like a thrill, but that doesn’t mean that there aren’t a multitude of things to avoid as you look to buy your first home.

But don’t fret! We’ve outlined the most common mistakes that first-time buyers when looking for the property of their dreams, and what your best practise should be instead.

Seal an agreement in principle
First thing’s first; get an agreement in principle from your lender in place first. The importance behind getting this step resolved is that it will give you an idea of how much your mortgage provider will allow you to borrow, and given that they’re often valid for 30-to-90 days, you should have the best part of three months to search for the right home before you need to get the agreement re-evaluated.

The benefit of getting what’s also known as a mortgage promise in place is simple; should you find a home you love and need to act fast, there’s no guarantee that you can find a loan big enough for you to buy it. With that in mind, figuring out the amount of money that you have at your disposal is vital.

Check your credit score
Another simple thing, but one that is also frequently missed. Checking your credit score prior to applying for a mortgage can save you a large potential headache; if you have a poor credit score then you run the risk of your mortgage application being rejected, which will cause further damage to your score. An early check of your score prior to applying for a mortgage can allow you to correct errors and get your credit rating in a healthier place.

Do your sums!
The process of buying a home is about much more than the price of a property; you have to factor in valuations, house survey costs, legal fees and conveyancing. These financial hits can seem unreasonable, but again, they’re vital to making sure that the property you’re buying is in good condition. With that in mind, make sure that you have enough money for these vital parts of the purchasing process, too.

What’s going on locally?
We all have certain criteria for the area that we’ll be moving into when it comes to choosing a home. Are there good schools nearby? What about shops or park space? Are the transport links sufficient for your work or other needs?

Research the local area; find out if this place will meet your needs and provide what you require in order to enjoy your life. If you’re able, spend a bit of time walking around and getting a feel for the place. Moving home can be an emotionally overwhelming process, so the more you know about your new area, the more settled you’ll feel once you move in.

Ask questions and don’t be afraid to get advice
It’s important to know what you want out of a home prior to conducting viewings, and it certainly does not hurt to have an idea of what questions you’d like to ask before you start visiting properties. Ask the sellers why they’re thinking of leaving, for example, or how long they’ve lived at the property, whilst testing out things like taps, windows and lights.

Beyond that, seek professional advice from an impartial mortgage broker. This is key, as a broker can assist you with setting up a financial plan, help you to find a good deal on a mortgage and get the ball really rolling on the buying process.

Top tips for your bathroom

It’s been a long day at work and you’re a little stressed; what better than a relaxing, hot bath to unwind and loosen up? Bathrooms have become sanctuaries in our homes in recent years, with innovative design and outstanding comfort at the heart of all good bathrooms. If you’re thinking of updating your bathroom, then we have some handy hints and tips to help you create a space to relax in.

Small bathroom ideas
A clawfoot tub in the centre of a decadent room is the dream for many of us, but the reality is that any well-designed bathroom should consider space and practicality at its core. If you have a smaller bathroom, or a room that is an awkward shape, then embrace the space and look for solutions, not problems! High storage allows you to make the most of the room, and naturally draws the eye upwards giving the feeling of taller spaces. If storage is paramount, then think about utilising the space under your bath – all you need is an opening bath panel that you can close and open when needed. To give the illusion of more space, include plenty of mirrors in your bathroom, as well as objects with mirrored or shiny surfaces – this will reflect the light around the room keeping it bright and airy.

Bath or shower?
Everybody has a preference for either a bath or shower, it is all down to personal inclination. If you’re feeling radical, however, then skip the bath altogether and go for a luxury shower in your bathroom – if you use glass screens then the space that this creates will give a real feeling of luxury. Exaggerated shower head sizes, and multiple shower heads will enhance this feeling of spa decadence, and the notion of bathtubs will long be forgotten.

Floorspace
A floor can make or break a bathroom in terms of the style stakes so the smallest of changes to your floor coverings can have a big impact. If you’re lucky enough to have quality floorboards in your bathroom then make the most of them by sanding them back and painting them – the rustic aesthetic is timeless and easy to maintain. A classic white paint will keep the bathroom crisp, but experimenting with other colours (especially pastels) will also add some interest to the room. Tiling your bathroom floor is a preferable option due to the longevity of the finish, and despite recent trends towards ornate tiling and Moroccan influences, we would recommend a neutral tile for bathroom floors which can be accented with painted walls and accessories.

The small stuff
The smallest details can have the biggest impact in our bathrooms – matching accessories around the room give a cohesive feel to the room, from soap dispensers to toothbrush holders…they can all make a difference. Keeping the walls and floorings fairly neutral in the bathroom are always a good idea as they are then easy to maintain and, most importantly, look clean and fresh in a space where cleanliness is next to godliness. Don’t worry about creating a bland space, however; you can add colour and interest through your bathroom accessories – these can be much more bold in design in order to add pops of colour around the room.