Written By Em

Em

Em Morley

Top Tips for Selling a Property in Winter

Published On: November 25, 2016 at 10:25 am

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During the winter months, when the days are shorter, the property market is known for slowing down, but this doesn’t mean that buyers stop searching. If you’re thinking of selling a property in winter, follow these top tips from the National Association of Estate Agents (NAEA).

While many sellers postpone putting their property on the market until the spring, now could be the perfect chance for you to take advantage of those buyers still seeking a new home.

By following a few simple steps, you can ensure that you market your property in the best possible light to capture a buyer this winter.

The President of the NAEA, David Mackie, says: “Traditionally, sellers hold off from marketing their homes in the bleak winter months, because they think it’s a bad time to sell. But it is time to go against these outdated claims and get your homes market ready by making small but effective changes to make your home an inviting prospect for potential buyers looking to make a winter purchase.”

These top tips will help if you’re selling a property in winter:

Don’t forget the exterior

Make sure your property looks well maintained and cared for from the outside by washing your windows and walls to remove any dirt. You should also clear the path of leaves and ensure there isn’t any ice on the paths that could cause an accident. Remember that the first few seconds upon arriving at the property are the most important in impacting the buyer’s decision.

Keep the entryway clear

Top Tips for Selling a Property in Winter

Top Tips for Selling a Property in Winter

With the bad weather comes untidy and cluttered homes. Put a doormat down inside the door for you and your prospective buyers to wipe your feet on, and remove any excess shoes or wellington boots from the entryway.

Let the light in

With shorter days during the winter months, it is vital that you maintain a good level of lighting in your property to make it inviting to visitors. If you’re hosting evening viewings, create a warm and cosy ambience with lamps, and don’t forget to put any outdoor lighting on too. Always make sure that the bulbs are working before a viewing.

Welcome your guests

Decorating your property for the festive season may help your guests feel welcome and comfortable in the home. But don’t go too overboard, as you don’t want the property to seem over-cluttered. Buyers should be able to envisage themselves living in the home, so it’s worth making it as inviting as possible. Smell is also important, so think about lighting some candles or bringing in some winter plants.

Remember the garden 

Messy and unkempt gardens can detract buyers, as they suggest that they’re difficult to maintain. The winter weather can also tire garden furniture, so clear it away or cover it securely. It’s worth braving the cold and spending a few hours trimming back bushes, mowing the lawn, removing fallen leaves and creating a tidy outdoor space. It’s also wise to trim back overhanging branches, as this will encourage as much light into the property as possible. Increased rainfall over the winter months also takes its toll on the guttering, so check for leaves and other debris.

Tackle any DIY jobs

If you’ve been putting off DIY jobs, the perfect time to address them is if you’re selling a property in winter. Whether you have leaky taps or cracks in the walls, make sure you put them right before viewings. Although you might not notice these small defects, potential buyers will spot them immediately, and you don’t want them to get worse during the colder months.

Going away for Christmas? 

If you have a holiday booked this Christmas, don’t forget that the heating in your property should be left on at a low temperature (a minimum of 15°C), to prevent the pipes from freezing. If you’re going to leave the property vacant for a long period of time, but don’t want to leave the heating on constantly, make sure it is set on a timer. The NAEA advises leaving it on for longer spells at a lower temperature than shorter blasts at a high temperature. This will ensure that there are no problems for you to face upon your return. If you’re a landlord, remember that you must still protect your property when it is unoccupied.

Are you thinking of selling a property in winter? We hope you secure a successful sale with these tips!

Broadband and Wi-Fi now essential for home buyers

Published On: November 25, 2016 at 9:58 am

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The latest buyer survey from Knight Frank has revealed that a superfast broadband connection or good mobile connection are becoming essentials for would-be property purchasers.

In fact, these features have passed those such as a good view!

Technological advances

Oliver Knight, Associate at Knight Frank Research, noted: ‘In an age of Wi-Fi, tablets and streaming, it is unsurprising that fast and reliable internet access is seen as a necessity among home movers.’[1]

‘Technology improvements, including fast, reliable internet have meant that working from home is a viable option for many, potentially cutting down on both commuting time and costs. This is likely to be particularly relevant for buyers in more rural property markets,’ he continued.[1]

Alongside looking at what buyers prefer in their property search, the survey also investigates what impact the stamp duty surcharge has had on budgets.

Results show that while 47% of people would be more likely to purchase a property with good internet connectivity, 41% have reduced their budget due to stamp duty. 14% are planning to stay in their property longer as a direct result of the changes.

Broadband and Wi-Fi now essential for home buyers

Broadband and Wi-Fi now essential for home buyers

Life quality

In addition, the survey found that quality of life was the top motivating factor for property buyers, followed by up or downsizing. 30% of those questioned said that their preferred location for their next home is in a city. 25% of respondents said they were looking in a village, while 19% preferred the country.

Security and privacy were unsurprisingly the most important considerations when buying a new property.

Oliver Knight concluded by saying: ‘The wholesale reforms to stamp duty announced in December 2014, and subsequent introduction of a 3% surcharge for individuals purchasing additional properties, have succeeded in making buyers more price sensitive, and this has been factored in to asking prices and offers.’[1]

[1] http://www.propertyreporter.co.uk/household/is-good-broadband-essential-for-a-good-view.html

 

Government Still Doesn’t Understand the UK Property Market, Insists Expert

Published On: November 25, 2016 at 9:37 am

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Following Wednesday’s Autumn Statement, delivered by the new Chancellor, Philip Hammond, many experts in the housing, buy-to-let and financial sectors have spoken out about its effects on the UK property market.

But one sentiment seems to stand out more than any other: The Government still doesn’t really understand the UK property market.

Government Still Doesn't Understand the UK Property Market, Insists Expert

Government Still Doesn’t Understand the UK Property Market, Insists Expert

While some believe that the Government has delivered yet more empty promises on housebuilding, others claim that the letting agent fee ban will force landlords out of the sector and raise rents, causing yet more difficulty for tenants.

Some believe that Hammond was wrong to leave further Stamp Duty reform out of the Autumn Statement, while others, predominantly tenant groups, have welcomed the lettings fee ban.

And the Managing Director of Nova Financial, Paul Mahoney, agrees that the ban may not be as detrimental as expected: “Some have viewed this as a negative, however, I believe it is a storm in a teacup. The fees aren’t generally exorbitant and it should encourage letting agents to be more efficient in the way they structure their revenue, as opposed to hitting tenants with fees they often can’t afford.”

He also claims that any expectation of a U-turn in the mortgage interest tax relief changes was “always a long shot”.

However, he adds: “The raising of the no tax threshold to £11,500 and the higher rate tax threshold to £50,000 will benefit mum and dad investors, who can split their rental income.”

But in terms of boosting the UK property market, was it all bad news?

Mark Lawrinson, the Regional Sales Director of Portico estate agent, explains: “The announcement of additional funding for affordable housing across the UK and new homes in areas ‘of high demand’ is good news for the housing market.

“The planned budget of £2.3 billion on infrastructure surrounding these homes is also a sensible move, but I cannot help but feel the Government still doesn’t truly understand the property market in the UK.”

He goes on: “The schemes the Government launch are typically geared toward the first time buyer, yet what we really need is a way of helping the second steppers move up the property ladder, which would stimulate the market, but also increase stock for first time buyers.

“If we found a way to encourage property owners to move, we would create both greater demand and greater supply. Ultimately, we need to enable the entire market to turn over – and as much as first time buyers are an important part of that, we can’t forever build starter homes. People need to move into bigger houses and different areas as their lives change, so the natural movement of the market needs re-establishing.”

He adds: “Further focus is also required on the red tape and processes surrounding building, and I believe this should be streamlined under one governing body, rather than individual local authorities. This holds up the development of sites through the amount of planning applications required, and more needs to be done on allowing sites – including brownfield sites – to be freed up for development.”

Mortgage approvals fall during October

Published On: November 24, 2016 at 2:40 pm

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The most recent statistics from BIBA show that there has been a 10% year-on-year fall in the number of house purchase approvals year-on-year to October 2016.

For remortgaging approvals, levels stayed constant to those in October 2015. There has however been more growth in the last ten months.

Mortgage borrowing

Gross mortgage borrowing levels for October 2016 stood at £12.2bn, 4% lower in October 2015. Net mortgage borrowing increased by 2.5%.

Matt Andrews, Managing Director of Bluestone Mortgages, noted: ‘An annual decrease in mortgage approvals reflects a more cautious approach from lenders, likely as a result of the current uncertainty in the housing market and wider economy. However, fewer-approvals and the continuing squeeze on affordability is pricing an increasing number of would-be homeowners out of the market.’[1]

‘The borrowers who are set to suffer the most under these conditions are those who do not fit traditional high-street lending criteria. Automated credit scoring models seldom take into account the nuances often found in the credit profiles of contractors, the self-employed, or those with adverse histories,’ Andrews continued.[1]

Mortgage approvals fall during October

Mortgage approvals fall during October

Concluding, Mr Andrews said: ‘Yet the UK workforce is changing-contractors have grown by 35% in the past three years alone. If more lenders were to offer a more personalised underwriting experience, working to understand the factors behind an individual’s circumstances, we would see an increasing number of hopeful buyers achieve their goal of homeownership.’[1]

[1] http://www.propertyreporter.co.uk/finance/october-sees-mortgages-dr0p-by-10-year-on-year.html

 

Average rents fall in October-but yields remain strong

Published On: November 24, 2016 at 12:57 pm

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The latest figures from letting agents Your Move have suggested that private rents dropped slightly in October. However, buy-to-let landlords are continuing to see significant yields.

Data from the report indicates that rents in England and Wales slipped from a record high of £907 pcm in September to an average of £900 in October.

Sustained yields

Despite the slight falls, buy-to-let landlords are continuing to see significant yields.

Wales saw the largest annual growth, with rents going up by an average of 8% year-on-year to hit £591pcm.

Other regions with strong rental growth include the East Midlands and the East of England. Rents in both of these areas rose by an average of 6% year-on-year to hit £628pcm and £856pcm respectively.

London is still the region with the largest rents, typically £1,290pcm. This is a marginal rise of 1% annually.

Average rents fall in October-but yields remain strong

Average rents fall in October-but yields remain strong

Fall

The only region to see rents fall was the North East of England, where rents fell by 1% year-on-year to hit an average of £541pcm. Rents in the South West remained unchanged, staying at £668pcm.

Director of Your Move, Adrian Gill, said: ‘After a turbulent year for the economy it is no surprise the rental market has paused for breath this month. Despite economic uncertainty and the European Union referendum result, the lettings market has powered through the year so far.’[1]

‘The underlying market remains strong and we expect growth to resume in future months. Landlords continue to see impressive yields and the UK property market continues to be a safe and secure place to invest,’ Mr Gill concluded.

[1] https://www.landlordtoday.co.uk/breaking-news/2016/11/average-rents-drop-but-landlords-continue-to-see-impressive-yields

 

 

Will Lettings Fee Ban Force Landlords Out of the Sector?

Published On: November 24, 2016 at 11:32 am

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Categories: Landlord News

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Following yesterday’s Autumn Statement announcement, the industry fears that the lettings fee ban may force landlords out of the private rental sector.

Will Lettings Fee Ban Force Landlords Out of the Sector?

Will Lettings Fee Ban Force Landlords Out of the Sector?

In his first Autumn Statement, Chancellor Philip Hammond revealed plans to ban lettings fees “as soon as possible”. He believes the ban will save the country’s 4.3m private tenants hundreds of pounds.

But the lettings fee ban may have a detrimental effect on how many landlords still make a profit from renting out homes, believes Paul Shamplina, the Founder of Landlord Action.

“Although there had been some whisperings, confirmation of this announcement will be a big shock to the industry,” he believes. “It is realistic to assume that the ban on letting agent fees to tenants, which will leave a black hole in agents’ profits, will need to be partly recuperated through letting and management fees.”

He explains how this will affect landlords: “At the end of what has already been a tough year for landlords, and with uncertain times ahead, agents hiking up fees could be the final straw for some landlords and see them exit the private rented sector. Those that wish to hold onto their rental properties will have to increase rents in order to cover their costs. We could even see a surge of landlords opting to self-let and manage, which I believe will have a detrimental effect on rental property standards.”

He advises letting agents: “Agents will need to be forward thinking about how they can absorb some of this cost and the loss through other areas of their business. It has never been more vital for agents to educate less experienced landlords on the importance and benefits of a managed service, making sure they are compliant with industry legislation and preventing them from exiting the private rental sector altogether.”

But could the lettings fee ban be a good thing?

Simon Thompson, the Director of AccommodationForStudents.com, says: “With a recent report revealing the housing shortage in some university cities has driven rents up by as much as 10%, the scrapping of agent fees will be welcome news to students. Until now, students had no choice but to pay varying fees in order to secure the accommodation they want.”

But he is also wary of landlords choosing to self-let: “However, this could also have a negative effect on the rental market in the long term. It is likely that agents will be forced to increase landlord fees to cover their losses, which in turn will see landlords increase rents even further, negating any saving made to tenants in the first place.

“Those landlords that typically choose to appoint an agent to manage their properties are usually either less experienced than self-managed landlords, or do not have the time to manage their properties. If more landlords choose to self-manage to save on letting agent fees, this could lead to a rise in poorly managed and maintained properties.”

How will the lettings fee ban affect your investment in the sector?