Posts with tag: property sales

Further weaknesses are expected in the UK housing market over the short-term, according to responses to the January 2019 UK Residential Market Survey from the Royal Institution of Chartered Surveyors (RICS).

The results continue to signal a subdued backdrop, with enquiries, sales and new instructions all falling further over the month.

In the near-term, contributors to the survey sense little prospect of a turnaround, as concerns over the potential impact of Brexit continue to cause hesitancy, alongside affordability constraints in parts of the country. 

That said, while shorter-term sentiment remains downbeat, expectations at the 12-month outlook are modestly positive.

Housing demand

During January, new buyer enquiries declined yet again, marking the sixth successive monthly decrease. What’s more, demand softened to some degree across virtually all parts of the UK. Scotland was a slight exception, but, even here, the trend was only flat.

Alongside weakening demand, the flow of properties being listed onto the sales market also deteriorated, with the net balance reading of -25% the poorest since July 2016.

Moreover, the pipeline for sales instructions going forward still appears weak, evidenced by survey participants continuing to report that the number of appraisals is down annually.

Property sales

Rounding off a subdued month for housing market activity, agreed property sales also fell further, with the pace of decline seemingly gathering momentum compared to the December survey. 

Meanwhile, the average time taken to sell a property, from listing to completion, continued to lengthen, reaching 19.4 weeks (the longest since this series was introduced back in 2017).

Looking ahead, sales expectations for the coming three months remain downbeat, both at the national level and across most of the UK. Indeed, the headline net balance came in at -32% (which is down from -28% in December), while expectations are negative across 11 of the 12 regions/countries covered in the report. 

The outlook further down the line seems a little stronger, however, as a headline net balance of +16% of contributors are expecting sales to rise over the next 12 months (albeit from a lower level).

House prices

The headline price indicator softened for the fourth consecutive month, with the net balance slipping to -22%, from -19% previously.

When broken down, London and the South East continue to display the weakest readings, while pricing sentiment also remains negative in East Anglia and the South West. In each instance, strong price growth over the past six years as a whole has left measures of affordability looking stretched, with high prices therefore a key factor hampering demand at present.

Elsewhere, although house price growth seems to have lost at least some impetus in most English regions over the last six months or so, prices continue to rise firmly in Northern Ireland and Scotland.

In fact, both Northern Ireland and Scotland also display the strongest price expectations for the coming 12 months, followed by the North West and Wales. By way of contrast, respondents in London still see house prices falling at the 12-month outlook.

That said, five-year projections for house prices across the capital have risen above the national average over recent months (growth of 2.2% per year expected nationally, compared to 2.6% for London).

Lettings market

Across the lettings market, tenant demand increased modestly in the three months to January. As such, demand has now picked up in each of the last three quarters, following a flatter trend in the early part of 2018.

Nevertheless, new landlord instructions continue to dwindle, with the survey’s lettings supply indicator remaining in negative territory for an 11^thconsecutive quarter.

Respondents continue to expect rent prices to rise by roughly 2% over the next 12 months, while growth is forecast to accelerate slightly over the next five years, averaging 3% per year.

Selling a property, whether you’re a landlord or homeowner, can be a stressful time. To ensure that you don’t fall at the first hurdle – when getting the home valued – we’re looking at the main features that could devalue your property.

Homeowners, especially, can be surprised at which features may devalue their properties. 

NAEA Propertymark (the National Association of Estate Agents) members have noted some of the main features that they’ve witnessed devaluing a property…

Over-personalisation

Of course, if you’re decorating your own home, it should suit your personal tastes. However, if your taste is particularly colourful or bold, then it might be worth redecorating before you start to market your property.

As landlords will know, modestly decorated homes are the most desirable, as potential buyers can easily see how their own belongings would fit into the space and how they could make it their own.

Condition

It might sound obvious, but the condition of a property is an important factor for buyers – particularly those who want a home that’s ready to move into, without having to spend too much money doing it up.

Issues such as damp, cracks in the walls, poor roof condition, an old boiler and single-glazed windows can all have an impact on the value of your property and potential interest from buyers.

Bad presentation

If you’re looking to sell a property, make sure that it’s presented in the best way possible. Everything should be clean, clutter-free and any DIY jobs completed. 

If a home smells fresh and clean, then it has a much greater chance of selling quickly.

Swimming pools

Although they’re great fun for a weekend or two in the summer, swimming pools in the UK aren’t usually considered an attractive property feature. They’re expensive to maintain, use up a lot of space and the Great British weather means that you can’t use them very often, making them more fuss than they’re worth and a turn-off to potential buyers.

If your property has an outdoor swimming pool that is run-down, then you might want to consider filling it in. If it is in great condition, then think about selling the property in the summer, when the pool is up and running, and looking its best.

Planning permission and building regulations

If you have had any works carried out on the property, such as extensions or conversions, then make sure that you obtained appropriate planning permission and building regulations, and have access to these documents.

If you don’t have the right documentation, then you may find that you have to pay for them retrospectively before agreeing a sale.

Dark rooms

If you compare two identical homes, but one is bright and airy, while the other is dark and dingy, nine times out of ten, the brighter one will be worth more, because it’s more desirable to buyers. 

If you’ve planted lots of bushes and trees close to the windows, these may affect what buyers think. Frosted glass windows and net curtains can also sometimes have the same effect.

Japanese knotweed

The invasive Japanese knotweedis more common than you think, and can damage the foundations of a property and significantly devalue it if it’s at risk of subsidence as a result.

If you think that you can see any in the garden, then call in a professional to excavate it as soon as possible.

Mark Bentley, the President of NAEA Propertymark, says: “The house moving process is undoubtedly stressful, so it’s important to know what could add value to your home and what might detract, or even completely put off, potential buyers. 

“Sometimes, the improvements and changes you have made might make the property less attractive to buyers, so, before you start marketing your home, it’s worth taking stock and making any necessary alterations to give you the best chance of securing your asking price.”

He adds: “You can ask friends or family for their honest opinions, or your estate agents can help advise on any small changes you may want to make before placing your home on the market.”