Welcome to your monthly property update!

Welcome to your monthly property update!




Will the property market slow down?

The last few years have seen a sharp hike in house prices across the country, but can this rise be sustained? While recent data from the Land Registry shows house prices were up by 12% since April last year, some believe we’re heading towards a slowdown.
 
So, what’s going on? While the market spiked in 2021 thanks to the well-publicised stamp duty holiday – fuelling sales as buyers rushed to save significant sums of money – it calmed over the winter of 2021 before slowly rising again across the UK.*
 
However, in May this year, the number of sales returned to levels seen just before the onset of the pandemic. But what has driven this reversal?
 
The cost of living crisis appears to be playing its part by straining household budgets. Combine this with rising house prices and mortgage interest rates, and you have a recipe for dampening buyers’ spending power.
 
This doesn’t necessarily mean prices will fall dramatically. Big names across the industry – such as Propertymark and Rightmove – are still reporting a mismatch between demand and supply, which is keeping prices buoyant for now. All in all, experts predict that prices may only increase by between 1–5% over the next year or two.**
 
What does this mean if you’re planning to sell? The good news for homeowners is that no one expects prices to plunge over the medium to long-term. But if you’re hoping to maximise your sale price, striking while the iron’s hot may pay off.
 
Our team is ready to provide tailored advice that reflects your unique situation. Contact us today to discuss your options and book a valuation.
 
*Based on data provided by HMRC (June 2022).
 
**Predictions provided by Rightmove, Zoopla
 
 
 
 
 
 



Lower interest rates for high EPC-rated properties

 
The Real Estate Finance division of Secure Trust Bank has launched a new funding initiative to encourage investment in energy-efficient homes. The new Green Investment Loan is welcome news to property investors facing pressure from the Government’s plans to raise energy efficiency standards in homes across the nation. 

 

But how does the loan work, and who will it benefit? Firstly, it’s only available to those planning to buy or refinance a residential property. The property in question must also feature an Energy Performance Certificate (EPC) rating of A–C for 90% of its floor area. 

 

In return, the Secure Bank Trust will lend between £2–65m at a lower interest rate of 2.95% over the Bank of England, amounting to a Loan to Value (LTV) rate of up to 60%. This rate can rise to 3.1% for an LTV of 65%. 

 

When the scheme first opened, it achieved £150m of investment for 525 energy-efficient properties over a six-month period. The STB is once again hoping to make raising EPC ratings a more profitable enterprise for everyone involved.  

 

Many buy-to-let mortgage providers are also falling in line by offering more competitive rates for landlords looking to invest in efficient homes. This is ideal if you’re thinking about building your property portfolio or improving your home with a view to rent or sell. 

 

Our specialist team can advise you about local investment opportunities and how to increase your property’s EPC rating. Get in touch with us today.



More landlords are needed to help tenants find homes

You may have heard how well the sales market has performed over the past couple of years, pushing prices up 12.4% nationally*. The rental market has followed hot on the heels of this trend, with around three tenants currently vying for each property.**
 
Compared to the previous year, the number of available rental homes has dropped by 9%, which has nudged up the average price by £150 per calendar month.*** This means tenants now pay around £1,088 outside of London or £2,193 PCM in the capital.
 
But what’s driving this steep increase in demand? There are several factors involved. Rising house prices may force tenants to rent for longer than planned, meaning fewer homes are circulating on the market. Almost a fifth of landlords report tenants are staying put for longer than in previous years.****
 
In addition, concern over upcoming rental reforms has prompted some landlords to take their properties off the market. Dwindling stock further encourages tenants to remain in their current rental while they search for somewhere else to live.
 
The fallout from the pandemic has also muddied the waters, with many people choosing to move back to urban centres or escape to the country to work remotely. The latter is partly responsible for the intense pressures faced by tenants in popular rural hotspots.
 
Without more landlords joining the market to ease supply, many people may be forced to stay in unsuitable accommodation, leave their local areas, or even risk homelessness.
 
The good news is that if you have a property to spare, now is a great time to get involved and reap the long-term rewards a solid rental income can provide. This is especially true if you’re letting in areas recently boosted by the Elizabeth Line or where supply is strained.
 
Curious about how much your rental property is worth in the current market? Our friendly team is ready and waiting to book your lettings valuation.
 
 
 
*UK House Price Index (ONS: April 2022).
 
**According to a recent report by Property Reporter
 
**Data from TwentyCI and Rightmove (early 2021 to early 2022).
 
****Property Reporter (June 2022).



The ultimate end of tenancy cleaning guide

The definition of the word ‘clean’ can vary from person to person, which is why most deposit disputes between landlords and tenants arise around the end of tenancy cleaning. It is the tenant’s responsibility to hand the property back over to the landlord in the same condition they found it in on move-in day, and most would prefer to do so without having to fork out for professional cleaning.

 

Tenants are not obligated to pay for professionals to clean the property if it is left in good condition. This is why a ‘deep clean’ is pinnacle, as dust and dirt can collect in every nook and cranny and is easy to miss during everyday clean-ups. Once you’ve packed up your personal items, you should tick all of these key cleaning steps off your checklist before handing the keys over:

 

Planning in advance

 

Cleaning an entire property from top to bottom can feel overwhelming, so it’s important to start planning early and budgeting for any necessary equipment. A deep clean will take more planning and effort than a typical spring clean, so make sure you allow yourself enough time, and factor in how long cleaning will take on top of your move.

 

One step at a time

 

The larger tasks in each room might call for your attention first and foremost, but the best protocol is to take things one room at a time. This way, you won’t find yourself overwhelmed and burnt-out early into the process, as cleaning from one room to the next allows a sense of order and you won’t end up forgetting the smaller details which matter just as much.

 

Deep cleaning

 

It’s best to make sure the property is completely empty before completing a deep clean, as personal items can get in the way, and you might end up having to go over the same areas more than once. A deep clean can match the results of professional cleaning if you put in the effort and attend to all of the essential tasks, these can include:

  • Mopping floors and tiles
  • Hoovering and steaming carpets and rugs
  • Cleaning and polishing taps and other water fittings
  • Removing cobwebs from walls, ceiling, and skirting boards
  • Cleaning windows, doors, and handles
  • Degreasing the hob, oven, and all components
  • Dusting and polishing surfaces, such as tables and sideboards
  • Removing limescale from sinks, showers, and bathtubs
  • Scrubbing and disinfecting the toilet
  • Removing mould from walls and tiles
  • Wiping down kitchen cabinets and countertops
  • Cleaning all appliances (kettles, toaster, and microwave etc)
  • Emptying and cleaning the fridge and freezer
  • Cleaning out large appliances like washing machines or dishwashers
  • Emptying and cleaning bins (inside and outside ones)
  • Sweeping and tidying outside areas
  • Hoovering mattresses and sofa cushions

Check the cupboards and drawers

 

A kitchen can appear clean at a glance, but once you start opening things up, you’ll probably find that there is more work to be done. Make sure all the cupboards and drawers are completely empty and clear of any food residue or marks left by pots and pans. Try sticking to gentle cleaners such as dish soap and water as harsh chemicals, and too much water can damage the cabinets. 

 

Defrost and descale

 

If your landlord provided the property with white goods, it’s your responsibility to leave them in the condition you found them in. You can descale the kettle by filling it with equal parts white vinegar and water and bringing it to a boil. As for the freezer, use disinfectant to ensure it’s completely clean before unplugging and leaving the door open to allow any ice build-up to melt.

 

If you’re considering the points within this article, you may be on the hunt for your next rental property. Browse the homes we have available here.



Three things landlords offering ‘bills included’ tenancies should know

As the cost-of-living spikes, landlords and tenants involved in ‘bills included’ rental contracts will need to communicate clearly with one another in order to grapple with the new host of challenges. As for landlords offering bills included in their monthly rental fees, there are three key things to consider…

 

Landlords should avoid confusion on government’s £400 rebate

 

The former Chancellor recently announced that households across the UK can expect a £400 grant this autumn to help out with soaring energy bills. There is also further assistance available for the most vulnerable. But when it comes to rental properties, the tenants will need to be aware that the £400 rebate will go directly to the bill payer, which will be the landlord in instances where the cost of utilities is included in their monthly rental fee.

 

Most landlords will retain the payment to help alleviate the growing costs of the energy and water bills that they are paying on behalf of their tenants. In the case that tenants have misunderstood the government’s helpful scheme, they might expect that the rebate is to be paid to them, even if they don’t pay utility bills directly. Agents and landlords can avoid this by communicating their plans and the reasoning behind them well in advance to ensure tenants don’t feel as though they have been left in the dark on the situation, and the next steps are clear.

 

Landlords may need to be clear about costs

 

As announced by The National Trading Standards (NTS) during May 2022, there are new changes to the rules around the material information that letting and estate agents should include in listings through property portals and their own sites. This means that tenants must be provided clarity on their "unavoidable costs" of renting the property. This includes council tax bands, deposits, and the price of rent. As the new rules are expanded, the regulations will soon cover additional areas such as utility set-ups or information detailing flood risk status.

In light of this, landlords offering ‘bills included’ tenancies will need to be upfront about costs and any variations in prices that may occur during the contract. All of this information will need to be communicated to the tenant explicitly and upfront by the agents, rather than on request.

 

Now might be the perfect time to invest in energy efficiency 

 

New Government legislation entails that by 2025, private sector landlords will have to ensure that their rental properties adhere to the required energy efficiency rating of ‘C’ or above on new tenancies. The UK is also set to ban gas boilers in all new build properties, starting from the same year. Due to this, landlords will need to boost the energy efficiency of their portfolios as soon as possible in order to keep up with changing legislation.

 

Arguably, with the lettings market retaining unparalleled buoyancy, and demand for rental properties reaching record highs, now is the best time to invest in existing stock ahead of the regulatory changes. Likewise, more energy efficient housing supply, would reduce the overheads for landlords who offer bills-included tenancies.

 

Visit our website today to browse our available properties.



One in three properties receive an offer one hour after viewing

The housing market once again exceeds expectations after a poor reception from the chancellor’s mini-budget and regular talk of a possible slowdown, as current research suggests that in 2022, almost a third (31%) of properties are now receiving offers within an hour, compared to a mere 7% in 2018.

 

Over a five-year period, almost one in five (17%) properties received an offer within one hour of a viewing. An even more notable 7% of buyers made an offer on a property without attending an in-person viewing, according to data from MPowered Mortgages.

 

The data also outlined that properties receiving an offer in a day is up over the same period, rising from 26% in 2018, to almost half (48%) by 2022. Around 12% of homes have received an offer without a viewing this year, which could be a result of social norms shifting in light of the COVID-19 pandemic, where remote/virtual viewings became the new normal. The data showed a substantial jump in buying without viewing, up from 7% in 2018.

 

Strong demand and competitive buyers

 

To find out more about current buying behaviour, the fintech mortgage lender has launched a House Pace Index, driven by market conditions, government intervention within the property market, and consumer behaviour of wanting to ‘buy now’.

 

The research revealed that 38% of properties that have been placed on the market in the last five years received an offer within the same day of a viewing, with only 14% securing an offer after a second viewing.

 

The data also suggests that the younger generation are most prepared out of all age groups to take a more eager approach, with 18–34-year-olds acknowledged as most likely to adopt this mindset towards house buying. Some admitted to making an offer before seeing a property, in comparison to just 5% of 35–54-year-olds.

 

The average age of a first-time-buyer in the UK currently sits at 34, which is why this age group being quick to act could be pinned down to a lack of experience, coupled with fewer mortgage deals available on the market, the study suggested.

 

Tunnel vision

 

The data from Mpowered Mortgages also showed that, before making a first offer, buyers are seeing an average of three properties, while 40% of buyers only view two properties before deciding to make an offer on the home they set their sights on.

 

Pressure on buyers resulting in quick offers

 

The market is thriving with historical rates of activity as buyers race to secure their ideal property in the midst of a chronic imbalance between supply and demand. The current market climate and data findings show that offers are being made extremely quickly, despite common belief that a ‘slow-down’ is on the horizon.

 

Stuart Cheetham, CEO at MPowered Mortgages, commented:

 

“The race to find a home can be a daunting prospect even more so now in an environment where mortgage rates are rising as part of the cost of living. Of the many hurdles a homebuyer faces, one element that can be largely controlled is the certainty of their mortgage and this will be even more important as rates continue to rise.” 

 

Considering selling? Take advantage of the buoyant market and get in touch with us today to book your valuation.



What are millennials looking for in a property?

Every decade brings along a new wave of first-time buyers, and this time around, millennials are on the market. To help you draw in this new pool of potential buyers, we’ve found the top features that most millennials will seek out in their ideal homes…

 

Sustainable and eco-friendly

 

Most modern buyers will be deterred by poor energy efficiency, as the impact it has on the environment (and monthly bills) is becoming a notoriously unattractive factor. Millennials want to reduce their carbon footprints as much as possible in their homes – from air source heat pumps to solar panels – even if this means pushing out the budget a little further. Homes that offer energy saving solutions are hot on the market for younger buyers and will become increasingly more valuable over time.

 

Good value for money

 

Millennials will want to know that their bills are being kept to a minimal while also having a home that caters to their every needs. These types of buyers will be new to the house buying process and might still be finding their financial feet, so being careful with money and making responsible choices is key. Often, they are also savvy about the schemes that are available to help them onto the ladder, and switched-on about which properties will cost more to run.

 

Visual appeal

 

Even while the market experiences unprecedented levels of short supply, millennial buyers are known for being selective about properties based on their appearance. They’re also drawn to visuals, and many will expect video tours to be available on the listings they browse, before committing to a booking. The information provided on the listing should also be as thorough as possible, as millennials like to know all the ins-and-outs of a property before attending a viewing. They will also undoubtedly read reviews online beforehand.

 

Location

 

Millennials will prefer to be in the heart of a great location, surrounded by a good community and local amenities for convenience. With many young buyers on the market being remote workers, location has become more important than ever before. The working from home buyer will seek out a quiet, scenic spot, with enough local shops and footpaths close by to fill up the lunch hour. While a commuting buyer will want a spot right in the city, with good commuter links and plenty of amenities available for the morning rush.

 

Convenience

 

After years of apartment living, millennial buyers will be highly attracted to a house which offers good storage space. Laundry rooms and pantries may also be important to these buyers, and they are likely to be attracted to a ‘ready-to-go’ home complete with all appliances, if it comes within budget.

 

Do you have a property that ticks all of these boxes? We could have a buyer waiting for you. Get in touch with us today to discuss the local demand for properties like yours.



The art of negotiation: Is it time to talk to your agent?


There is an art to everything in life, and when most people rehearse something in their heads, it usually goes perfectly. Put this in the cold, hard light of day, and things can go quite differently. When it’s time to make or accept an offer, the help of a trained expert is invaluable.

Your agent has a database of buyers and sellers
Your agent does so much more than list your property on their website and a few property portals, with maybe a picture of your home in the branch window. Armed with a database of buyers and sellers and a list of contacts longer than your arms, it means that agents complimented with their ability to market your home are best placed to meet your new buyer. And because of this, they are the best people to advise you on your asking price in the first place.

Making an offer
When it’s time to make an offer, you will most likely be wearing your negotiating hat. The market today is in a good place, helped by the huge demand for homes. It’s easy to make an offer under the asking price and miss out on the home you love. But you also do not want to pay over the odds. Estate agents are well-versed in this and will guide you. It’s worth remembering that estate agents are legally required to tell you about other offers, but not each offer amount.

Accepting an offer
It’s not unusual to receive multiple offers on your property, and this is where the experience of a good agent earns their money. Not to mention that you have found yourself in this good position thanks to the agent in the first place. Your agent will guide you along the right path, prepare your home for sale, give you tips on optimising its value, and market it to the right buyers. Then you can decide whether you want to accept an offer or not.

Market knowledge
Your agent will have years of experience in marketing and selling homes in your area. The plus points of the area and of your home are all great selling points. And equally, an agent will have a thorough eye on where you may be able to negotiate. For example, if there is a patch of dampness or something that needs updating

Are you emotionally attached?
Your estate agent will advise you on all aspects of your move. This makes you feel secure and safe before you move. And the more you feel this way instead of stressed, confused, or bemused, the better your entire moving experience will be. Whether you need help finding a better mortgage deal or are unsure of any of the steps involved, from valuing your home to finding the right buyer or your next home, it’s good to have the assistance of an agent. They also remove any need for awkward moments when a buyer makes an insulting offer to your face.

Valuing your home correctly
Getting the correct valuation for your home is vital in today’s market. Get this first step right, and you are already halfway to where you want to be. It’s very easy to overprice or underprice a property. Equally, without conducting a thorough expert valuation, your home may not reach its full value potential. A good agent will not allow your home to hide its true value from you or your buyer.

Get in touch today to make your move happen!
 



What are tenants looking for?



 

As a landlord, you have an awesome future ahead of you, with the demand for rented accommodation growing ever stronger. But that’s no reason to rest on your laurels. The buy-to-let market is changing, and with that come new opportunities and threats. Using a letting agent to handle the entire process is a shrewd move. They will keep you on the right side of the law and help sustain your rental income while giving you more time to enjoy life. As a landlord, you will want to know how to keep your tenants happy and optimise your investment, so here are a few features many tenants are highly interested in.

Energy efficiency
Many renters have become increasingly cost-conscious, so good energy efficiency is a high priority. Modern, clean living that is kind to the environment and has cheaper energy bills with added character is a win for all concerned. Energy-efficient homes are in high demand and can often achieve a higher rental income than less energy-efficient homes. Little things like LED light bulbs and energy-efficient appliances all add to this.

A well-presented home
Good double or triple-glazed windows trap heat while stopping it from escaping. But they also look good and help to create a nice greeting upon entering the property. If a home looks good, it will feel good, and if it’s in good order, it will attract good tenants. A nicely decorated home that is not in need of repainting or regrouting is often better cared for by its tenant, so it’s in your interest to keep your property in good shape.

A good garden
Good gardens are in high demand, and gardens with good outdoor living spaces are becoming expected. Even if you are letting a smaller property with little scope for a garden, adding a nice outdoor area will increase its desirability. This means more revenue for you and an increased level of demand. This will also encourage a good landlord-tenant relationship, allowing you to benefit from the stability that comes with that.

Your property’s location
Different tenants will have different needs, and your property’s location will have many positive points about it. Whether that’s being within walking distance of a great pub, social scene, shops, or if you have a young family, a good school. Excellent transport links also play a big role. The proximity of your property to the motorway, train station, or airport is important. Whether located near the city centre or in an idyllic country setting, your property’s location is a feature of what makes it great.

Make the most of your property
Adding smart technology to the heating system or security system will make your tenants feel secure. Perhaps a well-maintained parking space makes your property a great place to live. Many tenants also appreciate good storage space, and an open-plan design can often help create space. And where you can’t do this, add some mirrors and good lighting to increase the feeling of space.

Support with convenience
A managed property service makes the entire process of renting, for landlords and tenants, a breeze. Tenants can enjoy a swift and seamless move with everything from references to deposits taken care of. Landlords have their property maintained while being connected to experts who will ensure your property is always compliant with good, reliable tenants in place.

Get in touch today for an expert rental valuation of your property.

 



Why do so many people still choose to buy their homes?



Even with mortgage rates being a bit higher than in recent years, though not as high as years further in the past, buying your own home can often be cheaper than renting. But there are many reasons why homeownership is incredibly desirable.

A magical homely feeling
Owning your own home is a unique feeling that can’t be substituted by anything else. It starts when you get the keys and the first time you walk through the front door, and it remains with you every time you come home. It is a feeling that creates a flow of powerful emotions, such as safety, security, relaxation, happiness, and elation.

The desire for a great garden
There are many great homes to rent in the UK, and many landlords are happy for you to take care of the garden while others will maintain the grounds for you. However, if you are a passionate gardener or one of an increasing number who adores outdoor living areas, they are easier to create when you own your own home. Truly reaching your home’s potential takes a lot of investment in time and money. You want to be as free as possible to create your perfect outdoor haven without answering to anybody else.

Something to leave your loved ones
Working hard is a way of life for most people, and even if you are not married with a young family to care for, it’s nice to have something to show for all your hard work. You stand to gain from the equity you accumulate over time, even if the idea of leaving your home to loved ones or the charity of your choice does not motivate you. So, when it’s time to retire, start a business, travel the world, or invest in other properties, you accumulate the means to do so without even thinking about it.

Security
It is a reassuring feeling to know that you are in control of your destiny. You decide where you want to move, sell up, or buy a better property. And if you do have a family to care for, you are providing a place that they can call home for as long as they need it. Moving in the middle of a school year can be difficult for younger family members if your landlord decides to retire.

Monthly outgoings
Despite the recent fluctuations in interest rates, they have remained more stable in comparison to soaring rents. And with fixed-interest-rate mortgage deals for up to five years, you can plan your financial future more easily. This allows you to calculate your household budget for everything more easily, from food shopping and holidays to your savings.

Complete creative control 
Whether you want to rebuild motorbikes in your front living room, knock all the walls down to create an open-plan grand design, or add a conservatory, you can do so without seeking permission. The chances are that you will never want to do any of these things, but there is something fulfilling about knowing that you can, if you decide to do so.

Ascending the property ladder
There is typically more scope to ascend the property ladder if you own your own home. Your first home may need modernisation. This can rapidly add to your property’s value if you carry out the work yourself. Even if you don't, as long as you do not overspend, you will be in a good position to sell up and buy a better home.

Are you in the market for a better property? Contact us today.



Applying for a mortgage? Here’s how to improve your chances


Perhaps it’s been a while since you moved, or you are a first-time buyer. Whatever situation you are in, if you are applying for a mortgage, you want to get your mortgage sorted so you can breathe a sigh of satisfaction, knowing that a major hurdle to home-buying has been cleared.

Take a look at your credit report
Having a good credit score is key to getting a mortgage. Make sure you are on the voting register. You may have a perfect credit history, but without it, you will fail. On that subject, make sure you pay any credit agreements you have on time. If there are some you can clear, perhaps this will increase your levels of affordability. Any credit cards that you don’t use could affect the amount you could borrow, so if you don’t need them and you have more than one, think about cancelling them.

The bigger your deposit, the better
Perhaps you are already living at home with parents or a relative and saving rapidly. It may not be ideal right now, but a bigger deposit will not only increase your chances of success but also reduce your monthly repayments. Then, when you finally get the keys to your very own home, your newfound freedom will feel even better.

Buy with your friend, partner, or family

Buying with your partner is an obvious choice for many, and moving to your own place is exciting as you furnish it and decorate it to the tastes of whoever has the final word! If you are not ready for such levels of commitment, then why not buy with a friend? Some lenders will allow you to buy with up to four people. Maybe you could pitch the idea to your parents as a property investment for them and move out more quickly!

Don’t change your job too often
If you are thinking of applying for a mortgage in the near future, changing your job is not a definite guarantee that you will not be successful. Having said that, your lender is looking for consistency. They want to see that you have been in employment for a decent amount of time, usually about three years, depending on the lender.

Get in touch with a mortgage advisor
A good mortgage advisor is worth every penny. Experts in understanding the market, they will have lots of tips and access to ways of buying your home. From improving your credit score to finding a tailored solution from the thousands of products that are available. If you are happy with your existing mortgage deal, you may decide to port your mortgage, which allows you to move with your existing mortgage. There are interest-only options for lower payments, guarantor mortgages, flexible mortgages so you can overpay or underpay, and buy-to-let options for investors. Offset mortgages allow you to link your savings to your mortgage by offsetting the value of your savings against the value of your mortgage amount. The right mortgage advisor can make a big difference in helping you get the keys to the home you want.

Thinking about moving home? Contact us to get started!



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THE HOUGHTON WEAVERS have been entertaining folk for 48 years...

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