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.

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How Economic Trends Are Influencing the Property Market in 2025

Rising interest rates are putting pressure on buyers, especially those looking for larger properties or in expensive urban areas. With higher mortgage costs, many potential buyers are opting for more affordable housing options or postponing their purchases. This shift is expected to lead to slower house price growth in the short term.

On the flip side, the demand for rental properties remains strong as affordability becomes an increasing challenge for many. People who may have been able to buy a home in previous years are now finding it more difficult due to higher borrowing costs. This trend has resulted in a competitive rental market, particularly in areas close to major cities or key employment hubs.

Another major factor influencing the property market is the continued rise of hybrid working. As more people embrace flexible work arrangements, many are seeking homes with additional space for home offices and located in quieter suburban or rural areas. These areas are seeing increased demand for larger homes, where buyers can secure more space for less money compared to city living.

Ultimately, the economic trends of 2025 point towards a market that is stabilising after several years of rapid growth. While rising costs are cooling the demand in some areas, the rental market remains strong, and demand for homes in more affordable, spacious areas will continue to rise.

The Impact of Climate Change Policies on UK Homes

By 2025, homes will need to comply with stricter energy efficiency standards set by the government. The push for greener buildings is driving a change in how homes are built, renovated, and valued.

Energy performance certificates (EPCs) are now more important than ever, with buyers and renters paying closer attention to a home’s environmental credentials. Properties with high EPC ratings, reflecting energy-efficient features like better insulation, solar panels, and efficient heating systems, will see greater demand and higher valuations. Homes that fail to meet the new standards may struggle to sell or rent, as buyers and tenants look for properties that offer long-term energy savings and sustainability.

Moreover, government initiatives aimed at promoting green building practices, such as grants for energy-efficient home improvements, are expected to increase. These policies are not only making homes more eco-friendly but also creating a market for properties that incorporate green technologies.

For buyers and investors, prioritising energy-efficient properties will be key to securing long-term value. As demand for sustainable homes increases, properties that are already compliant with new energy regulations will be better positioned in the market.

In conclusion, climate change policies are set to transform the UK property market. Energy-efficient homes will become the norm, and buyers and investors who embrace these changes will benefit from rising demand and increased property values.

The Future of Smart Homes: Are They Worth the Investment?

By 2025, homes equipped with advanced technology such as voice-controlled lighting, automated heating systems, and smart security features will be more prevalent. But as technology evolves, a common question arises: Are smart homes worth the investment?

For many buyers, the answer is yes. Smart homes offer convenience, energy savings, and enhanced security, making them an appealing choice. For instance, smart thermostats can learn a homeowner’s habits and optimise heating and cooling, which can reduce energy bills. Voice-controlled systems allow for effortless control over lighting and appliances, while security cameras and smart locks offer peace of mind, especially for busy professionals or families.

The growing demand for energy-efficient homes has also made smart technology an attractive feature. With the UK government increasingly focused on sustainability, many smart home systems can help reduce a property’s carbon footprint, further driving their popularity.

However, the investment in smart technology might not always yield a return in certain markets. In more rural or lower-demand areas, the added cost of installing smart features may not be fully recouped when selling the home. But in urban areas, where tech-savvy buyers are more prevalent, smart homes can often command higher prices, providing a strong return on investment.

In summary, while smart homes represent a growing trend, the value they add to a property depends on the local market and the buyer’s preferences. As technology continues to evolve, the smart home trend will only gain momentum, making them an attractive option for forward-thinking investors and homeowners.

Shared Ownership vs. Private Buying: What’s the Best Option in 2025?

Each option has its own benefits and drawbacks, depending on your financial situation and long-term goals. Understanding the differences between the two is crucial for making the best decision.

Shared ownership has become an increasingly popular option, especially for first-time buyers. This scheme allows you to purchase a portion of the property, usually between 25% and 75%, while paying rent on the remaining share. This can make homeownership more affordable, as it reduces the upfront cost and mortgage payments. Shared ownership is also supported by government schemes, making it an attractive choice for those struggling with high property prices and large deposits.

However, while shared ownership offers a more affordable entry point, there are some downsides. Buyers must pay rent on the portion of the property they don’t own, and there can be restrictions on the ability to sell or make changes to the property. Additionally, shared ownership properties often have lower resale values compared to fully owned homes.

On the other hand, private buying offers full control and ownership, with no rent payments or restrictions. It’s the ideal option for those who have the financial means to purchase a property outright or secure a larger mortgage. While it requires a larger upfront investment, private buying gives homeowners more freedom to make changes and can offer better long-term financial returns.

In conclusion, the best option depends on individual circumstances. Shared ownership offers an affordable way into homeownership, but private buying provides more freedom and potential for long-term growth. In 2025, prospective buyers need to weigh the pros and cons of each option and consider factors like financial readiness and future plans.

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