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.



Darwen Comedy Club3rd February 2024

Alun Cochrane, Markus Birdman, Percy Savage and MC Danny McLoughlin at Darwen Comedy Club!
Acts subject to change.

Click here to read Darwen Comedy Club3rd February 2024.



Joining the January rush? Here are some top tips

 
The beginning of a new year often marks the beginning of a new life, and for many, this means moving home. Because of this, January is a significant time in the property market. So, whether you’re planning on buying, selling, or both this year, here are some top tips to help you beat the New Year rush.

For sellers:
  • Preparation is key
    Before placing your home on the market, make sure it’s in its best possible condition first. This might mean investing some time into making small repairs, staging, and decluttering to ready it for the eyes of potential buyers. A well-presented home will stand out on a busy market, so don’t forgo a little home improvement!
  • Set a realistic asking price
    Overpricing can deter potential buyers, but under-pricing could mean you’re selling yourself short, so it’s important to strike the right balance. An expert valuation will assess all your home’s unique features, while also taking into account the local market landscape. This produces an accurate and competitive price for your home, allowing you to secure a fast and successful sale.
  • Show off your home’s best features
    High-quality photos, virtual tours and expertly crafted descriptions are all important for showcasing your property online. In today’s digital age, a strong online presence is vital. Without social media reach, your home would not have half as much exposure to potential buyers. Make sure your chosen agent has a solid marketing strategy in place and knows how to utilise online platforms to cast a wide net.
  • Choose the right agent
    Partnering with a reputable and experienced agent can make all the difference. Your estate agent should be well-versed in your local market and therefore have the expertise to advertise your property effectively, negotiate on your behalf, and guide you through the entire selling process.
  • Be open and flexible
    Selling a home requires a great deal of time and commitment. While the viewing process can be disruptive to your everyday routine, being flexible and accommodating might land you a buyer quicker. Once you’ve secured your buyer, make sure their timings for completion align with your own, even if this means compromising slightly, as this will help speed up the process and avoid any confusion.

For buyers:
  • Get your finances in order
    Before you can get started on the search for your dream home, you’ll need to make sure your finances are in order. The best way to get ahead of the curve is to obtain a mortgage agreement in principle. This will strengthen your position when making an offer, as sellers will view you as a reliable option.
  • Know your priorities
    You should know exactly what your priorities are in terms of location, size, and any other important features. This will streamline your search and help you make informed decisions, rather than wasting any time on homes that aren’t suitable.
  • Act quickly but thoughtfully
    The January rush can be competitive, and a home that you have your eye on may receive multiple offers similar to yours. While it’s important to act fast, you shouldn’t act merely on impulse. Take some time to thoroughly inspect the home and do your due diligence both online and in person before making an offer.
  • Manage your expectations
    Wish lists are essential when it comes to finding your dream home, but it’s equally important to be realistic about what you can afford and what is available on the market. Be open to compromise where necessary, but don’t sacrifice any essential requirements.
  • Work with an agent
    A skilled agent can guide you through the buying process, help you identify suitable homes, and negotiate on your behalf. Having someone who is experienced in the local market on your side is invaluable when it comes to finding a home in a busy market.
 
If you're ready to take the plunge into the January rush, our experienced team is here to assist you every step of the way.



Here’s some good news to guide first-time-buyers

 
Interest rates are reducing, and lenders are offering increasingly competitive deals, especially to those with good deposits. Both ready-to-move-in homes and homes in need of modernisation are available for you to take your first steps. But even if you don’t have a large deposit, you can still make your first move.

Mortgage Guarantee Scheme is extended
This is great news for those with a 5% deposit. The government-backed Mortgage Guarantee Scheme, which was due to end in December 2023, has been extended until June 2025. Thousands of first-time-buyers have benefited from this scheme, which was introduced in April 2021. If your budget allows, homes with a value of up to £600,000 can benefit from the scheme.

Less competition and lower interest rates
Higher interest rates have meant some people hoping to get on the property ladder have been priced out of the market. This is good news for you, as you have fewer buyers to compete with, and the bigger your deposit, the smaller your interest mortgage rate will be. Though the first-time buyer market has been outperforming other sectors, a little less competition means house price inflation has reduced. A sure way to get ahead of the competition is by keeping up good communication with your local agent, who will contact you immediately when a suitable home becomes available.

Exiting landlords
With some landlords retiring and others being scared away by imminent legislative changes, more first-time buyer-type homes are entering the market. If you are looking for a flat, apartment, or two-bed terraced home, you may find certain locations offer a little more choice. That said, properties of this type are in high demand, so it pays to be organised. Have your deposit ready and get an agreement in principle from your mortgage adviser so you can get a viewing quickly.

Homeowners ascending the ladder
As homeowners of first-time buyer-type properties put their homes on the market to move to second-stepper homes, you will benefit from increased choice. Lowering interest rates and better deals with an increasing range of mortgage products mean the market is moving again. The beginning of the year is also a time when people begin their search for a new home with a renewed sense of vigour. Some home movers will choose to put their homes on the market, hoping to be chain-free buyers when it’s time to make an offer. This is another advantage of being a first-time buyer: you are chain-free and often the preferred choice of sellers.

Trust your agent
Knowing where good starter homes are located, which locations are the best places to buy, and simply finding your potential property makes hunting for a home with your agent the way to go. You could spend hours searching property portals and miss out on what’s under your nose and already listed with your local agent. They are also aware of any properties coming onto the market. If this is your first property purchase, their knowledge and support offer a lot of comfort and reassurance by happily answering the hundreds of questions that will play on your mind. And if you need to source a good mortgage adviser, conveyancer, or other property-related professionals, they will gladly connect you to the right people.
 
Get in touch today to see how we can help you take your first steps to home ownership



Good news for landlords thinking of converting homes into two flats

 
A great opportunity appears to be on the horizon for landlords as the government announces plans to make it easier to convert your house into two flats without planning permission. This will reduce the red tape, costs and transform the process of making your property more profitable. But the advantages don’t stop there, and they are not only confined to landlords.

A greater return on investment
Whether you are a landlord with an extensive property portfolio or own a home in which you see the advantages of subdividing into flats, you stand to gain. Landlords achieve a greater return on investment by being able to increase rental income and the value of their property. If you are a homeowner, you could benefit from renting one flat out and living in the other when considering downsizing. And, both parties will benefit from an increase in the value of your property assets while providing a more compact, energy-efficient place to live.

The process will be faster
Currently, to undertake such a conversion, you need to seek planning permission, as converting a house into a flat is not defined as a permitted development. The government’s proposal will change this and speed up the process, as you will no longer have to delay work on your property. Listed building consent or conservation area consent may be required if necessary, and the government has stipulated that the permitted development right must not change the external appearance of the building.

When will these plans come into place?
The government is already in consultation about the change in 'permitted developments' legislation that will allow homes to become two flats. It is expected to be implemented towards the end of the year. The government, landlords, tenants, and homeowners are eagerly anticipating these changes, and the sooner the government brings them into force, the better, as they will have many positive benefits for all parties and the wider economy.

How will this affect the market?
Increasing the supply of energy-efficient and compact flats will provide more high-quality homes for tenants. Landlords will be able to achieve greater rents from the same property. With the outlook for 2024 looking promising, finding funding to convert homes into flats will be easier. The wider economy and communities will thrive as half-empty homes in need of modernization benefit from a makeover. Happy tenants in place will spend money, and the economic spinoffs will help improve many postcodes. This could help to add to the value of property in these areas while curbing spiralling rental inflation.

Communicate with your agent
Whatever your property plans are, it’s always good to keep in touch with your agent. New opportunities appear daily, sometimes hourly, in all shapes and sizes. Certain houses lend themselves well to conversion into flats. Your agent will be able to inform you when such properties are arriving on the market, connect you to a good mortgage advisor, value your existing property, and manage it if you don’t want the hassle of finding tenants or maintaining your property. It always pays to do your research; a good agent can give you a rental valuation to see how much extra rent you could achieve if you take advantage of the government’s new plans.

 
Contact us to make the most of your property’s opportunities



Why is moving home easier in 2024?

 
You can move quickly
Homes placed on the UK property market took an average of 34 days to sell in 2023*, this is a little longer than the ferocious pace of previous years. But currently, sales completions are taking less time due to conveyancers and removal companies not being backlogged. A nicely paced market without stupendous levels of competition from other buyers means that you can move to the home you want in good time. This year looks set to improve on all fronts, so you could find the right property and move quickly.

Renewed and optimistic interest
January and the build-up to spring bring an influx of homes to the property market. Many people who hesitated in 2023 because of a bleak outlook ringing in their ears, which never materialised, are now getting on with their moves. The outlook for 2024 appears increasingly promising as banks offer better interest rates. This pent-up demand helps in the negotiation of a fair price for the home you want to buy or sell. More and more homes enter the market, giving you greater choice. From cottages to castles, combining modernity with timeless character, greener homes, homes in need of modernisation, and rental-ready buy-to-let investments.

It's a mover’s market
Your home’s value is unique. With so many towns and cities still developing and positive influences on the market occurring, it can get confusing when it’s time to value your home. This makes your agent’s skills invaluable. Prices have both increased and decreased marginally; however, while they have been fluctuating, they have stopped rising at a rapid rate. This leaves you in a good position; you will get a good price for your current home due to rapid rises in recent years and recent renewed demand, but you will also pay a reasonable price as opposed to an overinflated price for your new home.

The advantages of higher interest rates
You can’t be blamed for hating higher interest rates! The banks seem to win every time. However, if you are waiting for interest rates to fall so you can save money on your property purchase, then don’t. As interest rates fall, property prices will most likely rise, so your mortgage will essentially cost you the same amount. Mortgage providers are competing and offering an increasing number of products at more affordable rates. Products such as offset mortgages and porting (moving home with your existing mortgage) to longer repayment terms mean the banks aren’t all bad! And with higher interest rates, property prices don’t spiral out of control, and you get a better property for a cheaper purchase price in a more stable market.

Your local agent makes moving easy
At a competitive price, your local agent is worth every penny in today's market. The fragmented and resilient UK property market is more complex than ever, so agents are vital for valuing your home correctly. This, combined with guidance in negotiation, means you will most likely save money and time. Agents want to keep the momentum in your home move as much as you do. But it’s their connections and market knowledge that can transform your move. Guidance and advice bring about emotional support and potentially a cheaper mortgage.
 
Contact us for a stress-free and happier home move

Zoopla*