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.



Castle to Castle Ultra 36Saturday 20th July 2024

Welcome to the Castle to Castle Ultra, an extraordinary endurance event that spans 36 challenging miles from the majestic Lancaster Castle to the historic Clitheroe Castle.

Click here to read Castle to Castle Ultra 36Saturday 20th July 2024.



Your 2024 rental market round-up

 

For property investors, strategy is key and usually starts with contemplation. Examining the year behind us can help you to develop your future plans. Whether you’re a seasoned landlord or a potential investor, here are some of the key takeaways from 2024:

Rental growth

In the 12 months to August 2024, average rents increased by 8.4% in the UK, marking a period of steady growth for the market.* This upward trend reflects a surge in tenant demand. With a growing population and ongoing challenges in homeownership affordability, more individuals are opting to rent, intensifying competition for available rental properties. The strong rental growth may continue as supply remains constrained in many regions, making this a key trend for both tenants and landlords alike.

Interest rates

On October 3rd, 2024, the Bank of England's base rate fell to 5%. This was a highly-anticipated decrease from the previous rate of 5.25%, which was the highest level in 16 years.**
The base rate is crucial as it influences the borrowing costs for banks and lenders, which then impacts interest rates on a wide range of financial products, including mortgages, loans, and personal credit.
Homebuyers and property investors are particularly sensitive to these changes, as mortgage rates typically move in line with base rate adjustments. With the base rate falling rather than rising, securing a mortgage has become more attainable this year.

Renters’ Rights Bill

Following the Conservative government’s decision to shelve the Renters' Reform Bill, which had proposed extensive changes to the rental market, the Labour Party has committed to introducing new legislation through the Renters' Rights Bill.
This reform is aimed at rebalancing the power dynamic between tenants and landlords, ensuring that renters have more stability in their living arrangements, while landlords have clearer legal frameworks to follow. As housing policies continue to evolve, both tenants and landlords will need to stay informed on how these legislative changes may impact the rental landscape.

Landlords needed

Despite gradual improvements in the overall supply of rental properties, the market remains strained. The number of available rental homes is still 20% below pre-pandemic levels***, creating a significant supply gap. This shortfall offers a prime opportunity for potential investors, as high demand combined with limited supply is likely to sustain rental price increases in many regions.
For new landlords or those looking to expand their portfolios, entering the market at this pivotal time could prove beneficial. With fewer homes available, renters face intense competition for properties, particularly in urban areas and regions experiencing population growth. This dynamic makes the rental sector an attractive option for investors seeking strong returns.

 

Need help managing your investment? Get in touch with our dedicated team today

ONS*
Bank of England**
Zoopla***



How is the slowdown in rental inflation positively affecting the market?


The good news that rents are not rising as rapidly must be music to your ears. As the year concludes, rental inflation stands at a lower rate than previous years. This is largely thanks to a 1.6% increase in rents for new lets over the first six months of 2024.* This was the slowest rise since 2021. We discuss the positives this creates for you.

A slowing of spiralling rents

As 2024 draws to a close, rent increases for new rentals are expected to average 3-4%, down from 8% in 2023 and 11% in 2022.* The rental sector welcomes this news, but it's understandable that you'd want more. It’s no secret that the sector is under reform, as the Renters’ Rights Bill aims to improve life for tenants. However, this may take some time to enforce, and there are still many rogue landlords out there.

A less frantic market

With the demand for rented homes less intense, you may have a greater chance of securing the home of your dreams. Homes are in high demand; however, thanks to the reduction in interest rates, first-time buyers are moving out of rented homes. This could potentially lessen the intensity of competition in your search for a suitable home. So, the more prepared you are, the better. However, good properties disappear from the market as quickly as they appear.

More choice

As tenants become homeowners, new developments and new landlords enter the market, you get a wider choice of properties. Sometimes it’s challenging to find the right home. Beginning your search as early as possible will give you the opportunity to keep looking. The more you search, the better your chances. For some, this is an enjoyable experience, for others, not so much. Virtual tours make it easier, but nothing beats an in-person viewing.

A glimpse into 2025

Now that this election year is done and dusted, the UK rental market is settling down. However, if you are thinking of switching homes, it might be wise to act sooner rather than later. This is because many retiring landlords have chosen to sell up. However, the construction of new homes in 2025 promises to offer positivity as the supply of homes increases.

Bring the search to you

It's no secret that the rental market is undergoing significant changes. If you need guidance and the peace of mind that comes with a managed property, using a reputable agent can provide it, plus much more. From assistance with securing your deposit and maintenance to discovering potential property matches, your local agent can help. Getting potential property matches sent straight to your inbox, so you can take a look inside, while you are on the go is a great way to make an early start.

 

Get in touch with our friendly and helpful team to discuss your requirements

 
 Zoopla*
 



How to keep your property safe over the holidays

 

Whether you are staying put or moving, the last thing you need is a break in. You may be insured, but the emotional consequences and the time it takes to replace precious items can cause chaos and delay your move. So, with this in mind, we give some tips that may help keep your home safe over the holidays.

Invite friends or family

There’s nothing better than having friends and family over for drinks or food. Perhaps there are certain family members that you may prefer to invite when you are not in! Either way, getting some people around to check all is okay or watering the plants and drawing the curtains may help create the impression your home is not alone.

Gadgets and video phone door bells

If you want to keep an eye on who is at the door even when you are not in, you can’t go wrong with a video ring doorbell. Smart security cameras and app-controlled devices may help create the impression that your home is not empty. Smart technology allows you to do so much, from checking the contents of your fridge to adjusting lighting.

Socials

Sharing memories and reels online is fun, and no doubt you will want to update your friends, family, and followers. That said, sharing your location can sometimes, if you are overly explicit, advertise the fact that your home is empty. On the other hand, you can also use social media to keep up with any news in your area that gives you cause for concern.

Lighting

Lighting can be an effective deterrent to burglars. Timers and sensors work well outdoors and indoors. During this season, you might find yourself tempted to run a cable through partially open windows. This might make forcing open your home’s windows less of a challenge, leaving what could be an easy entrance to your home.

Hiding keys

Hiding keys might be convenient, but it’s also a way of inviting burglars to your home. Instead of making it easy for them by hiding a key or using a key safe, it might be better to make alternative arrangements. Instead of leaving keys under a plant pot or the front door, perhaps it’s better to leave a spare key with a trusted friend or family member.

Don’t present your presents

Leaving open or unwrapped gifts is a good way to entice burglars. Undoubtedly, you will need to conceal your gifts from your loved ones. Your home insurance policy may require the inclusion of certain items. For instance, your existing policy may not always cover bikes, necessitating additional coverage.

Looking for a more secure home? Contact us

Leaving open or unwrapped gifts is a good way to entice burglars. Undoubtedly, you will need to conceal your gifts from your loved ones. Your home insurance policy may require the inclusion of certain items. For instance, your existing policy may not always cover bikes, necessitating additional coverage.

 

Looking for a more secure home? Contact us

 



Your home is in demand


We’re ending the year on a positive note, with buyer demand soaring 26% higher than the same time last year, as more homes were listed for sale and sellers searched for somewhere new to buy.*
While demand places you in a strong position to sell, it can be challenging to navigate an unbalanced market without guidance. As such, here are our top tips:

Don’t underestimate end-of-year activity

As the year draws to a close, potential sellers often decide to hit the brakes on their moving plans in favour of getting started in the new year. But by doing so, you could be missing out on a sweet spot in the market.
Home buyers have been benefitting from the lowest average mortgage rates for more than a year, which has supported double-digit growth in sales market activity.* Buyers are well-positioned to buy right now, which means you are also well-positioned to sell.

Sensitive pricing

Sensitive pricing remains key for sellers. Pricing your property in line with current market conditions will attract more buyers and keep your property from languishing on the market. With rising buyer demand, setting a competitive price will help you secure more offers and create a sense of urgency among potential buyers.
Collaborating with an experienced agent to determine the best price is essential to achieving the best result, so don’t skip out on an expert valuation from a local agent.

Timing

Timing is everything when it comes to selling. Listing your home during the end-of-year window, when others may be holding off, could give you the competitive edge you need. This is a prime opportunity to get ahead of the usual flood of listings that tend to appear after the Christmas period, which may result in more competition. Taking advantage of the current demand ensures that your property stands out and gets the attention it deserves.

Enlisting an agent

Enlisting an experienced agent is crucial in an ever-shifting market as a professional agent will guide you through the complexities of selling, helping you with everything from setting the right price to navigating negotiations. With our market insights and strategic advice, you'll be able to sell your home quickly and for the best price. Additionally, we can also help you find your next home, making the transition even smoother.

 

Ready to get moving? Start your journey with an expert valuation today

 
Zoopla*
 
 
 



The Music of Coldplay by Candlelight25th January at 7:30 pm

Calling Coldplay fans… you’ve been waiting for ‘Something Just Like This’!

Click here to read The Music of Coldplay by Candlelight25th January at 7:30 pm.