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.

Property searches often spike in January

Christmas is the time for indulging, spending time with family and watching all the classics.

As we head into the New Year, we've always found a renewed interest from homeowners and tenants, with enquiries and property searches at an all-time high.

We've all spent more time than ever at home in 2021, so you might find yourself planning what your 2022 Christmas could look like and whether you'd like to spend it living elsewhere.

Whilst it's commonly believed that spring and summer see the strongest market activity, year-after-year January has stood out as a time when online searches peak and more people are ready to make and accept offers in a fast timeframe.

Who chooses to move at this time of the year?

The new year property market usually consists of two types of people: first-time buyers and those re-entering the market after trying in the previous year.

In the spring and summer, the market typically becomes much more competitive, with higher supply levels.

If you want a fresh start in 2022, start the process now by instructing your agent, planning your property marketing strategy and taking advantage of the surge in buyer interest.

Whilst we all hoped the pandemic would be contained within 2021, it's now a confirmed reality that it will continue into 2022.

For that reason, we're committed to continuing all of the safety measures and social distancing practices we've implemented this year.

To make your home extremely visible on the property market over the New Year period, contact our agency today – visit our website for more information.

Top tips for first-time buyers saving for a deposit

Buying your first home is an extremely poignant event in anyone’s life and being able to put down a significant deposit is vital to stand you in good stead for your future repayments.

However, in light of Covid-19, we appreciate that it can seem more daunting than ever to imagine yourself taking that step towards homeownership.

As your trusted local estate agent, with lots of first-time buyer experience, we have compiled these tips to support your saving goals this January.

Plan ahead

During your property purchasing journey, it is crucial to identify any additional funds that you may need along the moving process. 

Likewise, being aware of your monthly income and outgoings is extremely important in order to create a timescale for your saving journey.

Move back home

If your parents or family are not in a position to be able to support you financially with your property purchase, there are other ways they can help.

The vast majority of first-time buyers find it difficult to save for a deposit due to their monthly rental outgoings, so moving in with a friend or family member is a great option to reducing these costs.

Due to COVID, it is important that you check the most recent guidance before changing your living situation.

 
Downsize

If your current rent price per calendar month is slowing your deposit saving down, and you can’t move in with a family member or friend, then downsizing may help.

Looking for a property that is smaller could save you hundreds or even thousands over the span of your saving period.

Check your direct debits

Especially at this time of year, many of us will take out various subscriptions without continuing to need them beyond the first month.

As such, it is important to go over your direct debits and ensure that you are still using all of the services you are paying for.

In 2019, Brits spent £4 billion on unused gym memberships – and with the average monthly fee being £35 per person – the cost really adds up.*

This also goes for streaming services and club memberships that you may no longer use.

Whether you have your deposit ready to go, or you’re looking to downsize to save some extra money, we’re here to help you every step of the way.

*Daily Mail

How the pandemic has changed the property market

COVID-19 has triggered widespread changes across the country – and the housing market is no exception.

Property sales have rocketed, which has been good news for those looking to sell.

Interestingly, the pandemic has also created some paradoxes in the market.

Rural regions have seen a massive spike in sales, as homeowners looked to escape to the country following the consecutive lockdowns.

A recent survey also concluded that people prioritise bigger gardens and proximity to green spaces more than they once did.

Broadband and mobile connectivity have also become more important as many workers go remote, either from choice or necessity.

Additionally, this home-based work trend has seen buyers prioritising transport links less – though this attitude may reverse as society slowly returns to normal.

Pandemic-induced lifestyle changes could affect the saleability of your property.

Luckily, just knowing what buyers are looking for can help you showcase the most appealing aspects of your home.

Since home hunters are increasingly browsing online and relying on virtual viewings, forward-thinking agencies like us have been busy adapting our marketing strategies to attract the right buyers.

Want to discover how we can maximise the value of your property? Just call our friendly team today.

*According to Zoopla’s January 2022 market data

Five steps to beat the January blues

During the COVID-19 pandemic, it is understandably a difficult time for many of us to find the motivation to plan ahead and commit to seeing through our resolutions for a healthier, happier and more productive 2022.

Given the freezing temperatures and lack of sunlight, January can be the least productive month for many of us, leading to a period of hibernation that can last until spring.

To help you overcome this, we want to focus on realistic and achievable ways you can have a more successful start to the year.

Try something new

It goes without saying that once we form comfortable habits or routines, it can be a challenge to push ourselves into trying something different.

Comfort zones are the worst for stalling development, so why not try taking up a new hobby or focus on achieving a goal?

It doesn’t have to be something wild like climbing Mount Everest, in fact, it could be as simple as baking a new cake each week to develop a skill.

Treat yourself

Life can sometimes feel as if it is going at 100mph, so it’s important to press pause and just live in the moment every once in a while.

Even something as simple as unwinding by having a warm bubble bath once a week can be the key to recharging your batteries and getting you back on track.

Explore your surroundings

Staying cooped up inside will have a negative impact on your mental as well as physical health. So, even if it's just for a 30-minute session, try and stretch your legs outside once a day.

If you are working from home but would normally be commuting to work, use that time to take a break outside instead.

Start a new series with your loved ones

Pick something to bring the family closer and pace yourself with one or two episodes each week, if you're able to wait that long.

There’s really nothing better than getting cosy in blankets and looking forward to the next instalment!

Set “stick-able” resolutions

Whilst it's commendable to set ourselves high goals for the new year – such as exercising every day of the week – you need to make sure those resolutions can be met.

If you overreach, you'll quickly burn out of motivation and fail to make any progress.

Strip it back and aim for somewhere achievable. That way, you’ll feel more fulfilled and see real change much faster, which will then incentivise you to keep going!

To make progress with your property plans this year, talk to our team.

Is yourNew Year’s resolution to renovate your home?

Setting New Year’s resolutions is a long-lived tradition and many homeowners may be looking to set a property goal for 2022.

Investing in a home improvement project can be a great way to add value to your property, so could this be one of your resolutions this year?

If so, here are a few tips on how you can get started with your renovations...

Make a schedule

Before you begin your renovation, take a step back and create a plan you can stick to.

This will ensure you don’t commit yourself to too many tasks, allowing you to remain stress-free and organised.

Allow for extra-spending

Everyone loves to save money where possible. However, a stringent budget may cause your goals to fall short.

When renovating, include an extra allowance in your budget in case you need to overspend.

Take the time to carefully save so you don't find yourself struggling unnecessarily and focus on the little tasks which won’t demand too much expense.

Have goals that are measurable

When starting a project, it is natural to want to see immediate results.

Depending on just how much work is required, you might want to consider planning out key milestones that will signal when the next phase of development has been reached.

That way, you won't lose heart from any potential setbacks or delays.

Ensure you can’t forget your resolutions

Plaster reminders of tasks you need to complete all over your home, meaning you can’t miss or avoid them.

Whether it’s a big A3 poster or a post-it note on the computer, this will keep your goals fresh in your mind.

For more property ideas or inspiration, talk to our team today about the renovations that add real value to your home.