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.

 

 

How much hidden equity is in your home?

It has been reported that almost half of homeowners are undervaluing their homes, including some cases where the properties were worth nearly £50,000 more than they realised.

 

Zoopla reports that only three in ten people have an accurate idea of how much their home is worth, with 45% undervaluing and 25% overvaluing.*

 

Nearly one in ten homeowners whose property was worth more than expected found that it was valued at over £100,000 more, with 40% located in the London and South East regions.

 

This means that more than one million UK properties could be hiding six figures of hidden equity – unbeknown to the owners.

 

What does it look like in London?

 

35% of London homeowners have found their property to be worth more than expected, by an average of £117,000.

 

Whilst 37% said their home was worth less than they thought, by an average of £49,000. 

 

In light of all the findings, a property in London is worth on average £22,846 more than anticipated, which is more than double the £9,470 national average.

 

What benefits are there for homeowners?

 

It is reported that the benefits from hidden equity have meant:

 

- 81% could improve their lifestyle

- 50% were able to move to a better property

- 18% between 55-64 were able to retire sooner than expected

- 13% could upgrade their car

- 13% went on more holidays

- 8% were able to help get family and children on the property ladder

 

Seven out of ten homeowners would have made different financial decisions if they had been aware of their hidden equity.

 

What could this mean for you?

 

You may be in for a surprise if you check the current value of your home.

 

There are huge benefits to knowing how much your home is worth, particularly if you’re thinking of selling, as the value could influence the type of property or location you move to.

 

Gráinne Gilmore, head of research at Zoopla, explained: "the effects of the pandemic over the last 12 months have been felt in the housing market, with many households reassessing how and where they want to live.

 

"There is soaring buyer demand but this is not currently being matched by homes being listed for sale. Homeowners considering a move could be in pole position in their local market if they offer their property for sale, and could be set to unlock hidden equity."

 

If you’re looking to sell your property or would like to get your property valued, please contact us today.

 

 

*Zoopla’s Hidden Equity Survey is based on research among 2,000 UK homeowners who have had their home valued by an estate agent in the past three years. 

 

 

 

12 cleaning tricks at the fraction of the cost!

From your oven to your bathroom, if you love to take pride in your home, you’ll want to know all the cleaning tricks and hacks to keep your home sparkling for a fraction of the cost.

 

Plenty of natural, cheap and quick cleaning tips from tin foil to vinegar and lemons can be used to save you time and money, making it even easier when you need to prepare your property for guests or even potential viewers who are interested in making an offer. 

 

 

Cleaning tips for bathrooms

 

Tip number 1 

 

 

Clean your bath with a grapefruit!

 

Get rid of water marks or stains in your bathtub by cutting a grapefruit in half, sprinkle on some rock salt and give it a good scrub, then rinse.

 

Tip number 2

 

Removing limescale from your shower using vinegar.

 

If you’re looking for a more natural way to clean your home from top to bottom, vinegar is your new best friend!

 

Soak your shower head in a mixture of boiling water and vinegar to unclog any limescale easily.

 

Tip number 3

 

Use an old toothbrush for cleaning your bathroom.

 

Don’t throw away your old toothbrush as it can be very useful!

 

Give it a rinse in boiling water to get rid of any germs and use it to get into any nooks and crannies that your vacuum cleaner can’t reach. It’s especially handy for cleaning hard to reach areas like around the tap or drain.

 

Tip number 4

 

Clean your toilet stains with coke.

 

Get a grubby toilet back to sparkling white by pouring in a can of coke.

 

Let it sit in the bowl overnight, give it a good scrub with the brush and then flush the next morning for a new sparkling loo!

 

Tip number 5

 

Unclog drains with baking soda.

 

Pour down the drain one part baking soda followed by one part vinegar then cover with a wet cloth. 

 

The two elements will react with one another to clean your drain naturally. Wait five minutes and then run some hot water to rinse.

 

 

Cleaning tips for kitchens

 

Tip number 6

 

 

Clean your chopping board with lemon.

 

Our chopping boards get a lot of use from meat joints to fruit and vegetables, so it’s no wonder they end up looking a bit tired and worn.

 

Lemons are great to lift stains as well as removing any smells. Still not shifting? Then try sprinkling some baking soda and repeat.

 

Tip number 7

 

Pop a lemon in your fridge.

 

Cut a lemon in half and put one on the top shelf and one on the bottom to mask any strong smells in your fridge.

 

Tip number 8

 

Remove limescale from your iron.

 

Keep your iron working well by removing excess limescale from time to time. 

 

Simply heat up, unplug and let it cool. Fill with one part vinegar to one part water. Leave for an hour then empty and rinse.

 

Tip number 9

 

Use a pastry brush to clean crumbs out of your toaster.

 

Unplug your toaster and sweep those hard to reach crumbs and burnt bits with a pastry brush. This will help your toaster last longer.

 

Tip number 10

 

Clean your washing machine with vinegar.

 

Place the empty washing machine on a hot cycle with one cup of vinegar inside. This will help remove limescale and mildew, making the machine last longer and clean more efficiently, plus smell amazing! 

 

Tip number 11

 

Use a fabric softener sheet to stop your bin smelling.

 

There’s nothing more frustrating after you’ve emptied the bin than to find a lingering smell. Pop a fabric softener sheet into it for an instant air freshener.

 

Tip number 12

 

Clean your oven with tin foil.

 

Pop some oven cleaner or fairy liquid to the oven and scrub the fat and grime away!

 

 

For more information on maintaining your property, talk to us today.

 

 

 

What you need to know about the 95% mortgage guarantee scheme

A new mortgage guarantee scheme was announced this spring, with the goal being to help first-time buyers and aspiring home movers purchase a home with a smaller deposit.

 

The initiative, which will be available for new mortgages up to 31st December 2022, is intended to increase the availability of mortgages on new or existing properties for those with small deposits. 

 

This comes after a plummet in 95% mortgages made available last year, as lenders lost confidence in the UK's financial stability due to the pandemic.

 

How will it work?

 

It is based on the Help to Buy mortgage guarantee scheme that ran from October 2013 to December 2016, which backed mortgages for 104,736 purchases – 2.7% of all those in the UK.

  

The average property bought through the scheme was worth £159,170, compared to an average UK house price of £223,000.

 

In terms of restrictions with the latest initiative, only first-time buyers or those moving homes are eligible to apply, not those wishing to buy second homes or buy-to-let properties.

 

First-time buyers and home-movers form a vital cog in the economy and housing market, so government support will play a crucial role in restoring the balance.

   

To get assistance on your mortgage needs, get in touch today, or browse our latest properties to see what's available in your area.

 

 

Why most landlords are not planning to increase rents in 2021

As the easing of lockdown restrictions continues, it would seem that tenants are beginning to return to cities and resume their 'normal' lifestyle routines, drawn by reopened venues and attractions.

 

This reversed change in demand, paired with a recent shortage of properties available to let, is fuelling a rise in rental values across the UK.

 

However, the National Landlord Index has revealed that a large margin of landlords (90.2%) believe they have developed a good relationship with their tenants.

 

Following this, 82% have pledged to not increase rent throughout 2021.

 

The report highlighted the fact that many landlords are aware of their tenants' financial difficulties caused by the pandemic and are aiming to keep rent affordable in light of this.

 

On the other hand, only a small margin of landlords (18%) indicated in this survey that they intend to increase rent over the next 12 months.

 

The area revealed as most likely to see a rise in rent was London, with 35% of landlords stating they would be upping their prices, followed by the North West and West Midlands (both with 21% in agreement).

 

The report revealed that Scotland, the North East, East and Northern Ireland had the lowest number of landlords planning to increase rent.

 

We consider the needs of both our landlords and tenants.

 

If you would like to talk about this in more detail, please don’t hesitate to contact us or learn more about our services from our website.

 

 

What do buyers and renters find essential in the current climate?

More than a quarter of UK homeowners and renters have claimed that their property priorities have changed since the COVID-19 outbreak.

 

Previously highly-sought after and high-value property features have dropped down the priority list for homebuyers and tenants, as they now seek different factors when looking for a property that meets their needs and lifestyles.

 

Easy commutes to work, proximity to local shops and restaurants, and local public transport links are no longer as desirable as they once were.

 

Instead, we have noticed a significant increase in those searching for more space, whereby those searching are willing to compromise on location or local amenities in return for larger bedrooms and a 'work from home' zone.

 

Having access to a private garden or nearby green space has also become one of the top preferences for homebuyers and renters, especially in light of reduced travel options this summer.

 

Are you looking to buy, sell, rent or let this year?

 

As leading agents within the local area, we're in the prime position to help you locate your next investment opportunity.