This month's property update

Mortgage agreements for early 2021 at their highest since the financial crisis

Mortgage approvals have reached a 14-year high, propelled by last year's property market boom.

 

The Bank of England’s mortgage data from the end of last year shows a 24.2% increase in mortgages agreed compared to the previous year, and at any time since the global financial crisis, with £87.7 billion worth of mortgages agreed.

 

In Q4 2020, mortgage lending reached £76.6 billion, with a year-on-year increase of 4.2%, whilst the share of mortgages with a low loan-to-value was 4.5% down in a year; the lowest since 2007.

 

Considering that the housing market was effectively closed for two months in 2020, it is incredible to see that the year ended with more approvals than the one prior.

 

The value of new mortgage commitments hitting a 14-year high was largely driven by homeowners who looked to move into larger properties and see savings of up to £15,000 from stamp duty tax in the process.

 

This activity has resulted in the annual growth rate for new mortgage commitments almost quadrupling in Q4 2020.

  

April should signal a turning point for first-time buyers, who will now have access to 95% mortgage options once again due to government-guaranteed support.

 

Having been absent until now, it's thought that the return of lower deposit mortgage products will lead to more positive growth for the sector in 2021.

 

As we head into the popular seasons for home selling, with schools and businesses reopening and the vaccine program continuing to take effect, we'd like to help you with your plans this year.

 

To learn your property's value, visit our website.

 

 

 

Lockdown helped third of UK homebuyers get onto property ladder

As challenging as the last 12 months have been for all of us, for many different reasons, there have been some positive stories and developments that have emerged during this unprecedented time.

 

According to new research from Rightmove, a third of UK home buyers have been helped onto the property ladder due to the national lockdown, with 27% of recent home buyers stating that the restrictions actually enabled them to save for their new home.

 

46% of those asked stated that they were able to get a foot on the ladder, as government 'stay at home' measures meant they drastically reduced their spending across social activities.

 

A further 33% said that having to work from home has also been a contributing factor to their ability to buy, as money otherwise spent on their daily commute or fuel consumption could be saved instead.

 

The other findings from this report show that savings were also made from family costs (10%) and moving back with parents or family members to save on rent and share social bubbles (5%).

 

Whilst it would be safe to assume we're all keen to return to some form of normality once again, it's incredible that the property market has been able to safely continue and help buyers achieve their dream of homeownership in 2020 and 2021.

 

With further savings available due to the stamp duty holiday extension until the end of June, it's expected that even more residential transactions will occur in the coming months.

 

To find out how you can get your foot on the property ladder, get in touch with us today.

 

 

What you need to know when investing in a buy-to-let property

Investing in a buy-to-let property is a dream that many of us will have at one point or another.

 

Property has always been a dependable investment option, with successful landlords able to set up their rentals to run like clockwork whilst benefitting from an additional source of income.

 

Before considering your first step, there are some key considerations to be aware of.

 

 

It won’t happen overnight

 

As much as we would like to say otherwise, having a buy-to-let property doesn’t just happen overnight.

 

Just like starting a new business venture, there are rules and regulations you need to comply with to protect yourself and your property.

 

Whilst some of these components can take time to understand and navigate, lettings agents like ourselves are fully equipped to guide you through all of the requirements.

 

 

Know the area you’re planning to invest in

 

It’s important to do your research on the area before signing on the dotted line, such as speaking to local agents about seasonal trends and rental yield opportunities.

 

Is it a hotspot for rental demand? Are there any attractive amenities, universities or transport links nearby that would appeal to tenants?

 

 

Ensure you can afford a buy-to-let deposit

 

Whilst a standard home can be secured with as little as 5% of the price of the property, a buy-to-let investment is usually much higher.

 

The average deposit is 25% for a buy-to-let mortgage.

 

It's also likely that your income will be evaluated, as you need to be earning at least £25,000 a year for most lenders.

 

 

Think about your target tenant

 

It’s important to put yourself in the shoes of a tenant and consider what they would want from a property.

 

Being a flexible landlord is key to ensure that tenants stay for longer, which is always great news for a landlord as you can minimise on void periods and secure your rental income.

 

When you have your buy-to-let property ready to market, it is a good idea to position your home based on the type of tenant you’re targeting, such as using the right communication methods to reach them.

 

 

For guidance on how to start your buy-to-let journey, get in touch with our experienced team.

 

 

Strict new fire regulations for HMOs and multi-tenancy buildings

The Home Office recently announced their intention to increase fire safety measures, stating that landlords of HMOs (House in Multiple Occupation) could face unlimited fines if they fail to comply.

 

The new enhanced procedures will be included in the future Building Safety Bill, which will be enforced in approximately 2022 and will apply explicitly to HMOs and other multi-tenancy premises.

 

The exact details are yet to be confirmed, but the government affirm that the act will improve the Fire Safety Order by requiring fire assessments to be recorded for each building.

 

Additionally, the government have verified that the new legislation will:

 

- Include the refinement of how fire safety information is accessed and preserved throughout the lifetime of a building.

 

- Better the quality of fire risk assessments and the expertise of those who perform them.

 

- Enhance communication and the organisation amongst those responsible for implementing fire safety and making it easier to identify who they are.

 

- Strengthening enforcement action, distributing unlimited fines to those impersonating or obstructing a fire inspector.

 

- Reinforce guidance in regards to the Fire Safety Order, which makes it easier to hold those who breach compliance in court.

 

- Improve engagement between Building Control Bodies and Fire Authorities when reviewing building work.

 

- Instruct all new flats above 11m tall to install information boxes.

 

If you'd like to talk about this in more detail, please don’t hesitate to contact us or learn more about our services for landlords.

 

 

Market predictions for the new year

 

The trio of low mortgage rates, the stamp duty holiday and changes in buyers’ priorities have all contributed to the incredible demand within the housing market in 2021. That is why we’ve managed to see an incredible leap of 30% in buyer interest across the five-year average.*

 

As the new year draws closer, we explore a few factors that are in store for the property market for 2022.

 

1. The return of first-time buyers

 

Whilst the demand is there, the range of buyers has changed.

 

At the start of the pandemic, most buyers were in the wealthier bracket of society and owned higher valued properties. Now that we’re seeing an improvement in mortgage affordability, the door has opened back up to first-time buyers!

 

If you’re a first-time buyer, we don’t expect the market to slow down anytime soon, so you’ll need to ensure you’re prepared to move quicker than normal when you find a property you like.

 

A good way to stay ahead of the game is by getting a mortgage in principle before you start house hunting.

 

Mortgage in principle (MIP) = this is a statement from a lender that they would lend you a certain amount and can assure a seller of your financial standing.

 

2. Race for space continues

 

Another domino effect from the pandemic is how homeowners began to prioritise space as one of their main needs in a property.

 

The combination of being cooped up inside, as well as businesses moving to remote working meant that people naturally discovered how much they valued space.

 

If you’re thinking of moving to find a property with more room, the time is now to get a move on with the process – especially with demand being high and surpassing supply.

 

Stay one step ahead of the game and book your up-to-date property valuation with us this month.

Why January is a great time to sell your home with Rubicon

 

It’s a common misconception that market activity lulls in January, ready to resume in the spring. But with demand levels still on the rise, this couldn’t be more wrong for 2022 predictions.

 

Many see the new year as a chance for a fresh start, and that can mean homeowners are on the hunt to physically change or improve their surroundings.

 

The number of people window-shopping on Rightmove on Boxing Day last year was 50% higher than the year before.*

 

To help you decide whether to take action, here are some of the top reasons why you couldn’t pick a better month than January to sell.

 

People are on the move

 

Statistics indicate that January is the busiest time of the year for employee redistribution or staff members moving around.

 

With many of us spending Christmas at home, it can also be the final push needed for first-time buyers looking to move out or a household to decide they need somewhere with more space for the year ahead.

 

There is less competition

 

After the holiday season has come to an end, conditions are optimal for serious sellers, as many homeowners tend to take their time listing their property.

 

This means that if you work with an agent over the next month, you could get ahead of the competition and really stand out on the market.

 

Show off your home

 

Intelligent buyers house hunt in winter, as properties tend to look their worst in these months.

 

So, if your home looks spectacular and is well presented by your agent, then it will impress viewers as they will assume your property looks even better in the summer! This mentality will draw in potential buyers.

 

Placing your home on the market in January shows confidence in your home – a fantastic starting point in convincing people to buy the property.

 

If you are looking to take advantage of the lucrative new year market, please book your valuation today.

 

*Rightmove

Winter energy costs for homeowners and tenants

 

According to new data released by Uswitch, almost 60% of households have reported that they are concerned about how they will meet energy bills this winter.

 

It’s estimated that half a million more households will owe money to their providers compared to 2020.

 

With the continued rise of inflation across England causing the cost of essential goods to go up, such as food and energy, it is predicted that many will keep their heating off to keep bills down.

 

The concern is that many poorer households may find themselves not being able to meet payments and will turn to borrowing more or falling behind in an attempt to meet their essential needs.

 

Data from The Money Charity has revealed that households in the UK spend a total of £120 million a day on water, electricity and gas, with a rising proportion starting to experience arrears on their energy bills.

 

Consequently, charities such as StepChange Debt Charity have seen a 388% monthly increase on their gas and electricity arrears web page.

 

As UK households are now going into the coldest time of the year, further research has shown that £510 million will be owed in total to suppliers. This is an increase of £77 million since 2020, as many feel the pressure of the rising cost of energy.*

 

With recent budget announcements introducing measures to help those that need it, StepChange are still concerned that many lower income households will experience a lot of debt problems over the next few months.

 

Are you concerned about paying your energy bills this winter?

 

Charities like StepChange can provide extra guidance for those experiencing financial difficulties, as well as ways you can keep your home warm this winter.

 

There is also further support available through the winter fuel payment, cold weather payment and warm home discount; schemes that involve a contribution of between £100 to £300 from the government towards electricity and heating bills.**

 

Whether you’re a homeowner, landlord or tenant, we’d like to help you with your property needs this winter. Contact us for more information.

 

*Uswitch

 

**GOV.UK

One in five landlords are making EPC improvements

 

With new rules coming into force from 2025 for rental properties, landlords must make sure their property’s EPC rating is C or above, or risk not being able to take on new tenants.

 

As a result, around 17% of landlords have made a conscious effort to improve the energy efficiency of their property. With a further 23% of portfolio landlords also taking action to ensure their properties meet the criteria.*

 

Changes by landlords include: 22% that had replaced their boiler and heating system, 23% looked to replace windows and 18% had installed new white goods.

 

Common green home improvements also include improving insulation, fitting solar panels and replacing gas boilers with a more sustainable alternative.

 

With such changes being implemented to properties, many tenants have stated they would pay more if this was the case for their rental property.

 

One in 10 private renters have also said they would stay in their current property longer if their landlord made changes that would benefit the environment – a popular consideration now emerging in the lettings market.

 

However, the main concern is that for many older properties, updates like changing the boiler simply won’t be enough. As a result, more serious changes may need to be made, making the entire undertaking a costly job.

 

In some cases, landlords can look to gain support from both lenders and the government to make the changes financially feasible. The hope is that with landlords making the effort to better improve the EPC of their properties, more favourable terms on mortgages will become available to them.

 

This has caused several lenders to introduce ‘green’ mortgages, rewarding those landlords that have an EPC rating of ‘A’ or ‘B’.

 

Landlords already making changes have been welcomed by many in the industry, as a positive step towards making sure properties are compliant from 2025.

 

Are you a landlord and needing to make changes to your property ahead of 2025? Get in touch with us today to discuss your portfolio needs further.

 

*Shawbrook Bank

The key home trends across 2021 and 2022

 

With 2022 on the horizon, you might already be thinking ahead to next year, whether that’s re-decorating a room, renovating a property or simply wanting to add some finishing touches to a space in your home.

 

In order to plan ahead, we’ve put together some of the key interior home trends that have emerged out of 2021 and what we think you’ll begin to see in the following few months.

 

Top trends of 2021

 

Looking back over this year, we saw many choose to add eye-catching furniture and bold murals, as well as snippets of more traditional materials like gingham and linen.

 

Going bold

 

With countless lockdowns, many of us were bored of being boring and wanted to bring the brightness inside.

 

Bold colours, feature walls, textured walls and neon lightings were all popular choices, adding a pop of colour to bring our homes to life.

 

Panelling

 

One of the biggest trends to make its way through 2021 was adding panelling walls, giving a more traditional charm to rooms.

 

Using architectural panels helps featureless walls stand out from the rest in a subtle yet stylish way.

 

Bringing the outside in

 

We filled our homes with plants and gave our furniture a natural makeover.

 

In came more natural materials, including bamboo, wicker, rattan and cane, with many favouring bringing outside elements into their homes.

 

Emerging trends for 2022

 

With sustainability a high focus at the end of 2021, it’s no doubt that this will run into 2022 and is reflected in our behaviour and elements when looking to decorate our homes.

 

Italian icons

 

Marble and granite were the standout surfaces of choice for 2021, but moving into 2022, terrazzo has seen a surge in demand, predicted to be hot next year.

 

Black accents

 

A great way of adding edge and depth to minimal spaces is black accents and hardware.

 

Choosing light and neutral colours for the main elements of your space and then adding black to certain features such as lamps, handles, radiators and tables is a great way of adding contrast to space.

 

More vintage than ever

 

With many shifting their focus to the environment, vintage finds are a greener choice.

 

Not only is shopping vintage a more efficient and sustainable option, but they can add personality to your home too.

 

Looking to make a change next year?

 

There’s no doubt that all the trends we’ve seen over the past year and those to come are great ways of bringing spaces to life, but it’s clear that the environment and sustainability will play a huge part in people’s decisions and choices in 2022.

 

Have you been thinking about moving house? Contact us to get started.