Posts with tag: property sales

Rightmove Reports Lowest Annual House Price Increase since 2013

Published On: March 20, 2017 at 9:47 am

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The lowest annual house price increase since April 2013 was recorded in February, according to the latest House Price Index from Rightmove.

House prices rose by an average of 2.3% in February, although overall demand remains strong, reports the property portal.

Rightmove Reports Lowest Annual House Price Increase since 2013

Rightmove Reports Lowest Annual House Price Increase since 2013

The slower house price increase makes it riskier for sellers to over-price their properties, Rightmove highlights, as 40% of vendors are more likely to sell if their properties are priced right when they first come onto the market.

Three-quarters of agents surveyed by Rightmove report that the market is currently price-sensitive, with buyers reluctant to enquire if properties are priced just a few per cent too high.

On a monthly basis, the average house price increase was 2.0% in February (£5,986) – the smallest rise for the month since 2009.

Although Rightmove traffic is high, investor sectors were understandably quieter than this time last year, as buy-to-let landlords rushed to beat the Stamp Duty deadline in 2016.

The Director and Housing Market Analyst at Rightmove, Miles Shipside, comments on the new findings: “While the prices of goods in shops are rising at a faster rate, the pace of price rises in property coming to the market is slowing. They’re still 2.3% higher than a year ago, but perhaps we’re approaching the territory where many buyers are unable or unwilling to pay what sellers are asking, given the negative combination of rises in the cost of living, tighter lending criteria, and a dose of Brexit uncertainty.

“The housing market has had a long sprint since April 2013, when the annual rate was last below this level, so it’s not surprising that upwards price pressure is running on tired legs, with average prices today being 23% or nearly £60,000 higher than they were then. This surge in the cost of homeownership highlights some of the issues referred to in the Government’s recent White Paper on fixing the broken housing market.”

The Founder and CEO of online estate agent eMoov.co.uk, Russell Quirk, says: “Depite Rightmove’s best intentions to deliver transparent market analysis, the nature of their data being based on asking price and not sold price means it should only be viewed as a tentative toe dip into the state of the UK market at present.

“Today’s numbers may help to compound the current issue of a shortage of housing, but this isn’t an anomaly that has only just surfaced. It has been rife for quite some time now, and so this latest data would suggest the addition of a seasonal pickup as we head into the busiest time of the year. This heightened market activity, coupled with the ongoing stock shortage, is leading to a strong hike in prices.”

He continues: “We’ve seen a lot of hesitation in the market of late, particularly amongst those in the likes of the South East, who are worried about maximising their investment return.

“The reality is that in areas like the Midlands, where prices aren’t as inflated, a more no nonsense approach is benefitting homeowners as they proceed with their sale and see stronger, more natural price growth across the board as a result.”

The Home Seller/Landlord Spring Clean Checklist

Published On: March 14, 2017 at 9:23 am

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Categories: Landlord News

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Spring is a busy time in both the property sales and lettings sectors. If you’re selling a property or are looking for new tenants at this time of year, this spring clean checklist will ensure that your home appeals to all guests…

Online estate agent eMoov.co.uk has highlighted which spring cleaning jobs to tackle first based on the importance placed by prospective buyers. The agent surveyed UK homeowners and asked them to rank six property features on their importance when making a good first impression:

  1. Interior rooms, walls and ceilings 

Despite the exterior of the property being the first thing a buyer/tenant will see, the interior was ranked the most important aspect of the home and should be the first place you tick off your spring clean checklist.

Jobs such as making sure the property is de-cluttered, filling any holes in the walls, stripping or repainting the walls, and generally having a good clean took president over any other feature of a property.

  1. Exterior walls and roof

Once the inside is looking its best, the exterior of the home was the second most important factor when making a good first impression amongst viewers.

Make sure that the roof doesn’t have any leaks, the walls are showing no cracks and the grouting is smooth.

  1. The front door and porch

The front door and porch are the gateway to the property and are often the first things a potential buyer/tenant sees up close.

Ensure there are no old shoes or bikes cluttering the porch, strip any peeling paint and give the door a fresh lick of paint, as well as making sure it doesn’t stick.

  1. The Home Seller/Landlord Spring Clean Checklist

    The Home Seller/Landlord Spring Clean Checklist

    Windows and window sills

Although they are only small features, windows and window sills were ranked the fourth most important aspect of a property.

The quality and appearance of windows can play a huge role in showcasing your home, so make sure there are no cracks, they have all been well cleaned, peeling paint has been removed and a fresh coat applied.

  1. The garden

The garden can often be neglected throughout the winter, so bringing it back to its full potential is the fifth point on your spring clean checklist.

As with the interior of the home, remove all clutter and rubbish, mow the lawn and trim the hedges to showcase the full size of your outdoor space. Repair any loose or broken fence panels or paving stones, and give them a good clean.

  1. The driveway and garage

The driveway and garage were voted the least most important factors for potential homebuyers. They can be big, time-consuming jobs, so leaving them till last can better help manage your time.

These external features are more of a bonus rather than a necessity, so buyers/tenants will view them with varying degrees of importance. Knowing they have space for a car or additional storage is more important than the state of those areas.

The Founder and CEO of eMoov, Russell Quirk, comments: “This research goes to show that first impressions do count, but where housing is concerned, the initial judgement of the exterior comes second to the internal appearance of a property.

“Where buyers are concerned, it would seem they prefer to be underwhelmed by the outside of a property and pleasantly surprised by the inside rooms, rather than visa versa.”

He explains: “It makes sense as, when we look to move house, the internal rooms are the places we will actually be spending our time. You are immediately sat within them and so, if they aren’t up to scratch, it can be a put-off. But if there are aspects of the exterior you aren’t necessarily keen on, then not only can these always be changed, but you have a bit more breathing room in terms of settling in and unpacking before tackling them.

“A buyer will always view through their own personal lens, and there will be plenty of things they will change, but providing them with a solid, clean, neutral foundation can go a long way in securing a sale.”

Quirk continues: “It is interesting to see that the small details, such as the front door, the windows and window sills rank much higher than larger areas such as the garden and driveway. Again, it is these little touches that can stand out to a buyer and make all the difference to your sale.

“My wife has been on at me for a few weeks now to get our kitchen ready along with a few other jobs, so it is getting to that time of year when these things come to the forefront and buyer activity in the market also starts to heighten. Hopefully, this checklist will help the UK’s sellers prioritise appropriately when deciding which area to tackle first and aid them in making a sale.”

Pace of Property Market Growth Slowed in February

Published On: March 6, 2017 at 9:24 am

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The pace of property market growth across the UK slowed in February, according to the latest Property Activity Index from Agency Express.

Nationally, the number of new property listings rose by 10.2%, while the amount of properties sold was up by 26.2%.

Pace of Property Market Growth Slowed in February

Pace of Property Market Growth Slowed in February

Agency Express points out that figures for February are always affected by January’s post-Christmas spike. However, data from last year shows that the supply of new listings was higher, at 23.3%, while the number of properties sold increased by 37.6%.

Assessing the performance of the property market across the UK’s 12 regions, the Property Activity Index shows that 11 areas recorded growth in new listings and all 12 regions saw increases in the number of properties sold.

February’s top performer was the North West. New listings rose by 38.8%, while the amount of properties sold was up by 35%.

Other regional hotspots include:

Properties sold 

  • Wales: +45.9%
  • West Midlands: +37.7%
  • Scotland: +35%

New listings

  • Scotland: +25.9%
  • Wales: +14.8%
  • London: +10.8%

The pace of property market growth was lowest in the North East. The number of new listings increased by just 0.8% and the amount of properties sold was up by only 0.4%. Looking at the index’s rolling three-monthly data, properties coming onto the market are robust, up by 9.8%, while the amount of properties sold has declined, by 0.7%.

The only decrease in February’s index was recorded in East Anglia. The number of new listings for sale dropped by 5%, marking the region’s largest drop for February since the index’s records began in 2012.

The Managing Director of Agency Express, Stephen Watson, comments: “We traditionally see an adjustment in figures during February, and the latest data from the Property Activity Index has shown a slower moving market compared to 12 months previous.

“However, during the first four months of 2016, figures were stimulated by the Stamp Duty changes, so we may not see a clearer yearly comparison until the summer.”

11 Buyers Chasing Every Property on the Market

Published On: February 27, 2017 at 9:53 am

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NAEA Propertymark (the National Association of Estate Agents) has today released its January Housing Report, which shows that an average of 11 buyers are now chasing every property on the market.

11 Buyers Chasing Every Property on the Market

11 Buyers Chasing Every Property on the Market

An imbalance between supply and demand means that every homebuyer is facing competition from ten more prospective buyers.

Housing demand

The average number of prospective buyers registered per estate agency branch in January was 425 – up by 10% on December 2016, when NAEA members registered 386 on average.

Property supply

The amount of properties available to buy on estate agents’ books in January stood at an average of 38. This is down from 41 in December, and the lowest recorded since July 2016.

The rise in homebuyers and decrease in properties on the market means there is an average of 11 buyers chasing every home.

Home sales 

In January, three in ten (30%) property sales were made to first time buyers – a slight decline from December, when 32% of sales were made to this group.

The number of sales agreed per branch rose from an average of six in December to eight last month – returning to the same level seen in November.

Sale prices

More than one in every 20 properties (7%) sold for more than the original asking price in January – the highest amount since April 2016, when 9% sold for more than the asking price.

The Chief Executive of NAEA Propertymark, Mark Hayward, says: “January saw a surge in buyers looking to kick off the New Year with a new home, but competition is rife, with an average of 11 buyers chasing each property.

“The increase in the number of properties selling for more than the asking price in January could be a result of heightened interest and the fact there is simply not enough housing to meet demand.”

He adds: “When the Government issued their Housing White Paper at the start of February, we stated how important it was for the industry to put forward robust solutions to really make a difference, and it’s vital that building more affordable housing is at the very top of their agenda.”

UK Property Transactions Up by 4.9% in January

Published On: February 22, 2017 at 9:53 am

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UK property transactions rose by 4.9% on a monthly basis in January this year, although these figures from HM Revenue & Customs (HMRC) are provisional and subject to change.

UK Property Transactions Up by 4.9% in January

UK Property Transactions Up by 4.9% in January

The provisional seasonally adjusted number of UK property transactions for January was 104,820 residential and 11,570 non-residential sales.

This estimate is up by 4.9% on December 2016’s figure, and 0.3% on an annual basis.

For January, the number of non-adjusted residential transactions was around 26% lower than in December, while it was down by just 2% on January 2016.

Surge in UK property transactions 

Looking at historical data, HMRC claims that the large spike in UK property transactions in March 2016, followed by a substantial reduction in April, is likely to have been caused by the introduction of higher Stamp Duty on additional homes and buy-to-let properties in April 2016.

However, while April and May 2016 had lower levels of property sales than the same months in 2015, it must be noted that the total for the first quarter (Q1) to Q2 is still significantly higher than the corresponding period in the previous year.

The 3% Stamp Duty surcharge was announced in the Autumn Statement 2015 for England, Wales and Northern Ireland, and in the Scottish Government’s draft 2016-17 budget for Scotland.

Non-tax factors may have played a role as well, believes HMRC, for example, the Bank of England’s plans to curb buy-to-let mortgages causing a rush to purchase and the EU referendum affecting sales in recent months.

The residential UK property transactions count includes properties paying the main and additional rates of Stamp Duty.

March 2016 recorded the highest number of UK property transactions of the last ten years, the HMRC report also confirms.

Have you made any property purchases over the past month or so? And do you have plans for any in the near future?

eMoov Launches Attack on High Street Estate Agent Charges

Published On: February 6, 2017 at 10:06 am

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Online estate agent eMoov.co.uk has launched its latest attack on the traditional sector, exposing excessive high street estate agent charges.

The firm has highlighted just how far high street estate agent charges have soared as a result of escalating house prices and their “dated” commission-based model.

The agent has also compared high street estate agent charges to much more respected professions across the UK.

High street estate agent charges in 2016 

eMoov Launches Attack on High Street Estate Agent Charges

eMoov Launches Attack on High Street Estate Agent Charges

eMoov analysed the average house price across the UK along with the number of transactions during 2016, finding that high street estate agents profited by around £408m during the past year, based on average high street estate agent charges of 1.6% plus VAT. This is an average fee per property of over £4,000, claims eMoov.

The number of property transactions in the UK has risen steadily since 2012, up by 26%, with the average house price increasing at the same rate over the same period. As a result, high street agents have also seen their profits boosted, despite no additional service offered.

Earnings per hour

With the average property taking between 5 and 15 hours to sell, high street agents across the UK could earn as much as £815 per hour, climbing to £876 per hour in England alone.

eMoov insists that, although there are no barriers to entry into the occupation, high street estate agents still earn more than some of the nation’s most hard-working professions.

At around £42.50 an hour, an NHS doctor earns 19 times less than what a high street estate agent can pocket during the same time, with even private doctors having to work three hours to equal average high street estate agent charges.

A solicitor will have to put in four times that of an estate agent, with an hourly fee of £201, while a dentist will have to work for 16 hours, at an hourly rate of £51.51.

Even manual skilled professions require an “abundance” of training before they can qualify, argues eMoov, but an electrician (£18.35 per hour) and a plumber (£17.75 per hour) will have to work more than 40 hours each to match the hourly fee of a high street agent.

An infantry soldier in the British Army will have to work almost a full day (19 hours) to earn the same amount as a high street estate agent can in just one hour.

The Founder and CEO of eMoov, Russell Quirk, says: “We make a point of highlighting every year that, whilst house prices and transactions climb, so does the money made by high street estate agents, due to nothing more than their stale, commissioned-based fee. If anything, the service offered by high street estate agency has steadily declined, as the lack of barriers to entry have facilitated every man and his dog setting up a branch, with no real regulation on how they behave or treat the consumer.

“That’s not to say all high street agents are bad; there are in fact some very good ones, as well as those that don’t charge as much as the average 1.6% plus VAT in fees. But, unfortunately, there is still an abundance of those with a severe lack of moral fibre who get away with charging much more for no additional benefit.”

He continues: “The emergence of the online and hybrid sector is slowly changing that but, until it becomes the norm, and it will, the UK home seller will continue to be held to ransom by high street agents that know how to pull the wool over the eyes of both buyer and seller.

“The emergence of the online sector and property portals such as Zoopla and Rightmove means that now a property can almost sell itself. But to think that, despite this, there are high street agents across the UK netting 19 times more than a hard-working NHS doctor is a little bit sickening really.”

What do you think of high street estate agent charges, and have you been inspired to use an online alternative?