What's happening this month?

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

 

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

 

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.

 

 

 

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

 

 

 

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

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

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 

 

Top tips on being ready to sell

 

 

According to Rightmove, enquiries from buyers are up by 18% when compared to the same period last year.

 

If you decide to sell right now, you’re pretty much guaranteed to get high levels of interest following your market launch.

 

Here are our five top tips for selling your home in a busy market

 

 

Talk to the right people and stay informed

 

Whilst it’s easy to get caught up in the post-lockdown rush, remember that moving house is a big decision.

 

Make sure that selling is the right decision for you and that you have the best local advice to help you achieve the best deal possible.

 

Get certified

 

If you’ve made considerable renovations to your home, ensure you have the correct certifications.

 

If people are interested in your home, they will likely want to see them.

 

Check your property

 

If you’re selling a newly built or converted property, you must check it was built under a building standards indemnity scheme.

 

Lenders often won’t provide mortgages if newly built or converted properties are not covered by a warranty scheme or Professional Consultants Certificate (PCC).

 

This will be an issue if your buyers need a mortgage to buy your property.

 

We’d suggest getting in touch with someone that can provide you with a PCC, confirming that your new build has been constructed in accordance with the drawings and instructions provided by building control.

 

Carry out any minor repairs

 

Disrepair can seriously put off homebuyers.

 

The amount of work that needs doing to the property can impact how much interest you receive. Furthermore, doing any refurbishment before starting the selling process is always a good way to increase the market value of your property.

 

If there are any serious structural issues with your property, you should get them fixed before viewings begin.

 

Get in touch with a professional

 

If you want your home to sell quickly, always contact a professional.

 

We provide a bespoke selling service that is adapted to each individual property.

 

If you’re looking for a quick and easy sale, contact our team today.

 

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 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