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.

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

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

Surge in sellers renting ahead of their next move

With the sales market continuing to boom, many homeowners have secured a high price for their home in 2021, choosing to put themselves in a stronger position by renting during this stop gap period.

If you’re living in a rented property, you are normally able to move quicker due to not being part of a chain.

Rather than feeling pressured to act fast, this means that you're able to negotiate for the property and price you want.

It's also an incredibly sought-after position to be in when a vendor chooses who to sell to, as without a chain, the sale will be more likely to complete instead of falling-through.

The number of sellers looking for rental homes has contributed greatly to the dwindling stock of rental properties and consequently increasing rents. As a result, there were nearly half the number of properties on the rental market in July than this time last year, with the numbers continuing to drop.*

This is encouraging for landlords, as their properties are in demand with void periods falling rapidly.

But it’s not just homeowners looking to rent.

Due to the pandemic, many tenants no longer have to be tied down to one location.

With working from home now the new norm, a short commute is no longer desirable and moving away is more feasible. This year, 49% of tenants moved just because they wanted to live somewhere different, as opposed to moving from necessity.**

Are you looking to sell your home or put your property up for rent? Our dedicated team offer free, accurate and no-obligation valuations for both the sales and lettings market.

Find out how much your property is worth today and book your market appraisal.

*This is Money

*Estate Agent Today

What does the supply-demand imbalance mean for you?

Vendors have benefited from the supply-demand imbalance seen across the market in 2021, with 40% of properties selling above their original asking price, making conditions optimal for selling.*

What makes conditions optimal this autumn?

1) Low stock

Due to the pandemic, many people were put off selling their homes whilst the construction of new build properties came to a halt, causing a dip in housing stock.

This means that the homes currently on the market are being snapped up faster, with serious buyers putting offers in much sooner than they otherwise might have done.

2) Increased demand

With UK restrictions easing, buyers are now competing for properties, with 36% of homes attracting offers from three or more buyers.*

Many who originally put off moving due to the pandemic are now looking to relocate, causing a huge increase in demand and sparking bidding wars between buyers.

3) Mortgage rates

With the number of available UK mortgages on the rise, lenders are competing to attract more customers with low-interest rates and low-deposit mortgages, giving buyers more choice than ever when it comes to choosing the correct financial option for them.

Need a helping hand selling your home? Get in touch with our team today.

*Property Reporter and Which?

Will working from home be your new norm?

Last year, the number of adults who worked from home inevitably increased to 37% over lockdown.*

Despite many people agreeing that working from home makes them feel isolated, 85% of homeworking adults now favour a "hybrid" approach of both home and office working for the future.*

Whilst job adverts that included home working have increased dramatically to three times the amount seen last year.*

Are you currently working from home?

Here are our top tips on how you can create a healthy working environment.

1. Keep moving

When we work from home, we tend to be a lot less active than in an office environment.

Exercise is the key to staying in good health, so a lunchtime walk has many benefits and will keep you productive for the rest of the day.

2. Look after your eyes

Looking at a computer screen for hours can be taxing on your eyes.

Aim to follow the '20/20/20 rule'. That means that every 20 minutes, look 20 feet away for 20 seconds, this should help your eyes recover from the strain.

3. Create boundaries

It can be tempting to work longer hours from home but remember to have boundaries between work and home life.

Having a home office can be beneficial as a designated workspace that you can leave at the end of the day.

If you don’t have a home office, why not consider picking a space in your home that will be your professional sanctuary.

4. Put a plant on your desk

Plants can play a major role in creating a more peaceful, yet engaging workspace.

5. Natural light is important

Natural light is good for your eyes and mind.

If your home office doesn’t have any windows, make sure you have plenty of lamps producing light.

6. Invest in a decent coffee machine!

Standing up and giving yourself breaks from your computer screen is important.

Getting a coffee can be a well-earned break from work and give you some extra energy to get through the day.

With career changes higher in September than any other month of the year, are you looking to relocate? Contact us today to see our latest listings in your area.**

*National Office for Statistics

**Job search website, Monster

Buyers and sellers need to act now to move in time for Christmas

Homeowners up and down the country are preparing for the pre-Christmas rush, and with the demand-supply imbalance still providing sellers with optimal market conditions, it's likely we'll see a lot more sales to come before the end of 2021.

Every year, buyers and sellers are swept up in a flurry of market activity across autumn, with October standing out as a busy period for selling activity.

Will you be in your new home by Christmas? Here's where you should start:

Ensure the property is sale ready

Your estate agent will be able to tell you if there are any features of your home that might put off potential buyers.

If anything is flagged up, try to get it fixed before your property goes on the market, as doing this will mean you’re more likely to get a speedy sale.

Paperwork at the ready

Ultimately, the quicker that your paperwork is processed by the solicitors, the quicker you can get going.

Hassling with paperwork can slow down the moving process significantly, so pre-empt any requests for certificates or documentation by having it all in one place and ready when called upon.

Likewise, calling ahead to organise van hire or a removals company will ensure there are no issues on the big day itself.

Declutter thoroughly

With December not far off, it would be a good idea to start sifting through your belongings now to work out what will be going with you and what is no longer wanted or needed.

A clearer space will also make your property pictures more visually appealing and make it that much easier to unpack and set up your new place to feel like home.

If you are looking to sell your home, book your free market appraisal today.

Finding the right home at the right price

You might think you’ll never be able to afford your dream home, but there are a number of ways that you can make it happen.

From finding a doer-upper to avoiding expensive trends, here are seven ways you can make your money go further.

Buy an older home

Older properties may need more care and attention to update, but you can often get a brilliant property for far less.

According to Land Registry Data, new build properties sell for £65,000 more on average than existing housing stock.

Buy a home you can extend

A loft, basement or garage conversion can give you even more space and increase your home's value if and when you choose to sell later on.

Adding an extension, if done right, can be much cheaper than buying a larger house but make sure you do your research beforehand and budget for the necessary work.

Avoid paying for benefits you don’t need

Buyers will often pay more for a property that’s close to public transport routes or within a specific catchment area for schools.

If you're flexible on location, don't overpay for the sake of it.

Living in a catchment area for a good school can add up to 12% on a property's sale value, so you may be able to get more value elsewhere, if those priorities aren't essential to you.

DIY could save your wallet

Be prepared to do some renovations yourself to avoid paying extra.

When viewing a property, try to ignore the current owner's belongings and instead focus on the size of the rooms and its location.

Weigh up the money you’re saving against the cost of any refurbishments, as you don’t want to be left with any nasty surprises once you've signed on the dotted line.

Consider buying a property that’s going ‘out of style’

Homes built in the 60s, 70s and 80s are likely to be much cheaper, as they are considered less desirable.

When you buy a property, the only thing you can’t change about it is the location and amount of light it gets.

Consider this when opting for an outdated style of house, as an extension or just some TLC can completely change the look and feel.

Is location everything?

If you can’t afford the property you want in one area, it doesn’t mean you can’t afford it at all.

Consider looking at a few different locations and see how much property prices vary. Adding an extra 15 minutes to your daily commute may mean you can afford a significantly bigger property.

Make use of government schemes

Schemes like help to buy and shared ownership can be extremely useful if you can’t quite afford the home you want.

Help to buy means that you can get a five-year, interest-free equity loan of 20% of the property’s value, which could make all the difference when buying your dream home.*

Shared ownership gives you the option to gradually increase your stake in the property by staircasing as and when you can afford it.

If you’re looking for your perfect property, contact our team today.

*Zoopla

Rents rise at fastest rate for 13 years

The lettings market is booming, with properties letting almost a week faster than in 2020.

Now the pandemic is easing, people are returning to the city centres, which is causing an increase in demand and a shortage of available rentals on the market.

Rents outside of London have increased at their fastest rate since 2008, reaching £790 PCM on average.

Whilst rents outside of London have shot up by 5%, London landlords are also seeing a rise in value.

The average rent in London now stands at £943, up 2.1% compared to last year.

Affordability has remained consistent across this period, with average earnings increasing faster than rents, ultimately showing signs of healthy growth in the buy-to-let sector.

With tenant interest 80% higher than the average between the periods of 2017 and 2019, demand is still outstripping supply of rental properties.

What is causing this spike in demand?

- Students returning for the academic year

- Returning demand for city properties post-lockdown

- Level of rental homes decreasing by 13%

This mismatch in supply and demand has forced rents up and led to the rental market’s fastest paced year since 2016.

If you want advice on any aspect of the rental market, or are interested in a rental valuation, contact us today.

*Zoopla Rental Market Report

UK property prices up 13% compared to pre-pandemic

When the stamp duty holiday came to an end, it was expected that the home buying frenzy would tail off, however, prices and demand continue to soar.

There are currently 24% fewer homes on the market than this time last year, with higher than average enquiry levels and interest per property listed.**

Even when SDLT savings dropped from £15,000 to £2,500 earlier this summer, house prices were 11% higher when compared with August 2020, as increased demand led to competitive offers from buyers.*

For August 2021, the average price sat at £248,857. That has risen by 13% since the start of the pandemic, and an increase of £5,000 in the space of one month.*

Levels of demand are set to continue climbing as borrowing costs remain low. The fact that these costs have remained low has caused consumer confidence to grow, increasing demand further.

Experts predict that in autumn 2021, the property market will continue to see promising transaction levels, whilst by 2031, the average house price will have jumped by 30%.***

Our property experts can give you a reliable and free market appraisal, so that you know exactly how much your property is worth.

Book your valuation today.

*Nationwide

**Zoopla

***Based on trends from the Office for National Statistics