A property market update and tips whilst staying at home

Buy-to-Let still proving to be a sound investment

The buy-to-let market has had somewhat of a difficult time over the past few years due to changes in government legislation and taxation. Since July this year, however, the number of buy-to-let mortgages being approved has risen considerably and is proving that there is life in the market for those looking to invest.

With competitive mortgage rates available, especially if a larger deposit has been accrued, anybody who has the desire to become a landlord now has the opportunity to do so. A new report by HomeLet showing that the average rent around the UK has reached a record high of £970 per month demonstrates that the potential to reap rewards through buy-to-let is exceptional.

HomeLet data shows that rents have increased in every single region of the United Kingdom over the past twelve months, up to 3.5% greater than at the same point in 2018. For those looking to invest, this presents tremendous opportunity to be able to invest locally and see the benefits.

Biggest annual increases in average rents

Region	August 2018	August 2019	Annual Change
London	£1,632	£1,689	+3.5%
North West	£717	£741	+3.3%
South West	£826	£852	+3.1%

In terms of rental yields, we are also seeing record highs in terms of the average yield that landlords are reaping, with the average now reaching 4.5%, up from last year and the highest in three years. For those looking to maximise their yields, there is a growing trend towards Houses of Multiple Occupancy, or HMOS, as they tend to provide a yield approximately 20% higher than a typical rental property.

Which region provides the best rental yield?
North West 6.20%
Yorkshire & The Humber 5.90%
East Midlands 5.40%
Scotland 5.30%
West Midlands 5.10%
North East 5.10%
South West 4.40%
Wales 4.20%
East of England 4.10%
London 4.10%
South East 4.00%
National average 4.50%

Everything you need to know about the Bank of Mum and Dad

There are huge lenders in the mortgage market around the United Kingdom, with high-street names competing fiercely with one another for potential business. One of the largest current lenders may well surprise you, however, as rather than a large financial institution it is the bank of mum and dad which sits at 11th in the list of largest mortgage lenders in the UK.

Parents and family members are set to lend more than £6bn in 2019, which amounts to a higher amount in mortgage pay-outs than well-known brands such as the Co-Operative Bank and Skipton Building Society. With deposits becoming ever-increasingly difficult to amass, many people are now counting on their relatives to help them take that first step onto the property ladder; recent research from Legal & General and Cebr has found that nearly 20% of all property transactions are now aided by parents and grandparents.

Those lucky enough to be able to tap into this valuable resource will be aided predominantly by cash gifts, with some releasing the equity in their homes in order to help their children (16%).

Nigel Wilson, Group Chief Executive at Legal & General, says: “The Bank of Mum and Dad continues to be the ‘iceberg’ mortgage lender beneath the surface of our housing market – all but invisible yet exerting a massive influence, funding purchases across the country and helping people to defy the economics of affordability and realise their housing dreams.”

If you are thinking of using the bank of mum and dad, then there are a few considerations to take into account:

• Banks and building societies will accept a deposit, or part thereof, that has been gifted to you – some may require confirmation in writing that the money is indeed a true gift.

• If cash is gifted to you then this may be subject to Inheritance Tax (IHT) if the gift giver is deceased within seven years of the gift.

• Inheritance limits are £3,000 per year, and previous years’ allowances may be utilised before IHT comes into play. For example, two parents could gift £18,000 with no IHT due as long as they had not gifted anything in the previous three years.

• If the money is a loan, then this will need to be declared to your potential mortgage provider detailing repayments, interest, timescales and caveats.

Family Fun and Crafts

Friday 21st February

Join in with craft activities to create your own Antarctic adventure.

Click here to read Family Fun and Crafts.

Essential Tips For Working From Home

For a small number of people, working from home will be the norm. But for the majority of the nation, the current climate has caused us to quickly adapt our working practices to home working for the safety of ourselves and those around us. In doing this, it is important to create healthy working practices to maintain motivation and routine throughout the day.

We’ve gained advice from those who regularly work from home so that we can share some top tips for the coming weeks ahead. Continue below for our top tips on how you can get the best out of home working:

1. Get ready for the day
Get up and ready for work as you normally would. Getting dressed out of your pyjamas and fresh for the day helps you to maintain a routine and get ready for a day of work. Doing this will signal to your brain that you are going to work and create a good mindset.

2. Have a routine
Working from home can get lonely, so a routine will prevent the day blurring into a mix of work and relaxation time. Creating a morning routine that will guide you into your work chair each day so that you can signal the separation between home and work. Start and finish work at your usual times so that you do not become overworked.

3. Create an office space
If you have a separate office space to work in, then that’s great. But even if you don’t, it is still important to create an area in your home that you can designate and associate with work. Whether that be at a desk, or if it has to be your dining room table, this will support you to keep a routine. At the end of the day, shut down your equipment and put it away. This will signal the end of your working day and the start of your own time.

4. Keep to your regular hours of a working day
With all your work equipment at home, it can be tempting to try and get ahead by setting yourself mammoth tasks that take you all evening to complete. Set yourself achievable goals (as you would when you go into work) so that you maintain your usual work hours and maintain your positivity and optimism. This will also allow you to keep a work life balance.

5. Have regular breaks
When you are in the office, you naturally take short breaks throughout the day. Whether that be to go and make a drink or go and discuss something with a colleague. These breaks away from the computer are crucial for your productivity and health. Breaks away from the computer screen help to break bad posture habits, help with concentration and productivity, and prevent fatigue. This should be no different at home. You can call a colleague for a chat, go and make a drink, or spend some time in a different room for a few moments.

6. Get some exercise
Living and working in the same space can be challenging at times so you may find it important to get a change of scenery. Stepping outside for a walk not only allows you to “leave the office” but also allows you to get valuable exercise (providing this is in line with Government guidelines). Some fresh air and natural light will do you the world of good. With people rarely leaving the house, a short walk could be all the exercise you get in a day so place importance on this. Alternatively, you may want to do a short home workout. There are tons of guides online to help you do this. Let’s not forget about those all-important endorphins.

7. Take your lunch break
You are still entitled to your full lunch break and it is important to take this. Ensure you continue to eat well and take time away from your work space to break up the day. Using this time to get some exercise (as advised in step 7) is a great idea too.

8. Get on the phone
Communication is so important during this time. Working from home can be isolating (especially if you live alone). To overcome this, ensure to keep up with regular team meeting via group calls. Check in with your colleagues throughout the day – even for a general chat not related to work. This is what you would usually do in the office and it is important to maintain this to make the day more enjoyable. Call people instead of email so that you can have proper conversations during the day which is so much more personal that email communication. You could even use Facetime for a more personal touch.

Keeping The Kids Entertained

With schools now essentially closed across the country, many parents are having to care for their children whilst also working from home. During these unusual circumstances, it is essential to keep your children’s minds active, as well as ensuring that they exert some physical energy. We have compiled a list of resources and activities which should help fill the days…

1) Joe Wicks PE lessons – Joe Wicks, known as “The Body Coach” is streaming thirty minute PE lessons for kids every morning at 9am from Monday to Friday. You can either follow the workout live or catch it on his YouTube channel here https://www.youtube.com/channel/UCAxW1XT0iEJo0TYlRfn6rYQ

2) Carol Vorderman’s maths resources – since the Government chose to close schools for the masses, Carol Vorderman’s online maths resources have been made free for all to use. You can visit the site at https://www.themathsfactor.com/ and there are plenty of resources to keep your children busy, all of which have different levels of difficulty attached.

3) TES.com – You may never have heard of https://www.tes.com/ but if you are a teacher or work in education then it is a goldmine of resources. You can sign up free and then in the “Resources” section you will find literally thousands of lesson plans, activities and ideas that teachers upload to the site and often form the basis of their own lessons. With TES you can search for a specific topic and there will often be multiple resources – if you are looking to keep up your child’s scholastic habits during the school closures, this will be a real lifesaver.

4) Audio books – David Walliams’ children’s books have proved to be extremely popular and for the next month a new audio story will be released each day totally free of charge. Just head to bit.ly/AudioElevenses each day for the latest story.

5) Twinkl – Twinkl provides professional educational resources from early years upwards and often puts together some of the most imaginative learning resources around. During the Coronavirus period, they have made many resources free of charge and are offering free guides to help you with your child’s education https://www.twinkl.co.uk/resources/covid19-school-closures

6) Teach them to cook – If you are looking to teach something extra-curricular then why not start in the kitchen? Teaching your children a few basic recipes will eat up the time, as well as teaching them valuable life skills. You can start with baking basic recipes that require few ingredients, to them helping you with dinner for the evening.

7) Learn a new skill – With the internet, there is no excuse for avoiding new skills and has there ever been a better time to do so? With your child, you could learn how to knit – order the tools online – and could watch videos together, whilst helping one another with the intricacies of the craft. Other popular crafts to learn include crochet, needlepoint and cardmaking.

8) Practise yoga – In the current climate, it is easy to feel overwhelmed with world events, and children are extremely sensitive to our own behaviours. One activity that you can do together and is mutually beneficial is yoga – there are plenty of apps or YouTube channels which you can use to guide you through the process, and it should help with your whole family’s wellbeing.

Safe Activities To Get You Through Self Isolation

Whilst self-isolating, one thing a lot of us will have gained is some time. A lot us will not be used to spending so much time at home, so here are some activities that can be done safely, to curb any boredom:

1. Board games
Its’s the perfect time to dust off the family favorites, whether that be Monopoly, Uno, or Cluedo. Board games offer some great household fun and provide a break from electronic devices.

2. Arts and Crafts
Many of us will enjoy drawing or painting but never have enough time to do it. Now is the perfect time to start a new art project. It can be a great family activity to do with your children too.

3. Gardening
With Spring finally here it’s time to pay attention to our gardens and tidy them up. Spending time mowing the lawn, weeding, or planning new bulbs will give you some time to get some fresh air, as well as create a perfect garden. It is also a great time to dig out your outdoor furniture so that you can spend more time outside.

4. Baking
Baking is an activity that all generations can enjoy. Dig out those recipe books or search the numerous cake recipes online to make a tasty treat.

5. Cooking
Now is your chance to get creative in the kitchen and have more time to cook healthy meals. If you’re concerned at not having the right ingredients, there are many websites online that allow you to input what ingredients you do have. That way you can make use of what you have in the cupboards and get some inspiration.

6. Fitness routines
It’s always important to get some exercise each day, but with us now spending all of our time at home, we may need to get more creative. You can go outside for a walk or a run, or do an exercise routine at home. There are plenty of resources on social media and online that you can follow along with. You could even do this in your garden to get some fresh air. Some examples are Joe Wicks or the NHS Fitness Studio exercise videos.

7. Film days
We can have some well-loved lazy days on the sofa watching some family classics, or entire seasons of favorite TV shows. We all deserve the time to binge watch some TV.

8. Spring cleaning
Now is the perfect time to be house proud. A good spring clean is a positive way to stay motivated. When you enjoy your environment you often feel happier, so why not try and improve your living space.

9. Going for a walk
With spring finally upon us we have brighter days. Going for a walk can help to break up the day and get some vital vitamin D and exercise.

10. Online Resources
There are so many resources that can curb boredom online. You could learn a new skill using sites such as Future Learn or turn to YouTube for some video tutorials. Alternatively, you can spend time listening to music or some podcasts. There are endless options available to suit any preferences so there will be something for everybody to enjoy!

Norwich Community Choir

Tuesday 25th February

A friendly local choir for anyone who loves singing.

Click here to read Norwich Community Choir .

Our guide on 'gazumping' and how to avoid it happening to you.

If you’re looking for a new home, or are looking for your first home, then “gazumping” may be a term that you aren’t particularly familiar with. Essentially, gazumping is when you have had an offer accepted by a seller, and are in the midst of the buying process, when another buyer comes along and offers a higher price, effectively stealing (or gazumping) the sale.

Over the period between January 2016 and October 2018, analysis by TwentyCi found that 16% of buyers were gazumped. In the current property market, where demand for properties is high, gazumping continues to be prevalent, and the research found that Sheffield is the area with the highest level – with 35% of buyers out-bid at the last moment.

Phil Spencer, TV presenter and co-founder of Move iQ, said: “For anyone who thought gazumping vanished with the runaway price rises of a few years ago, our findings will come as a reality check.

“Gazumping is alive and well, and still causing heartache for tens of thousands of buyers across England and Wales.

“Britain’s fragmented property market is throwing up huge regional extremes. In hotspots where prices are still rising fast, sellers can be tempted to go back on their word to a buyer if they get a better offer elsewhere.

“Meanwhile, in slow markets, the lack of homes for sale can lead sellers to leave would-be buyers in the lurch if they get a last-minute offer from someone else.

If you want to avoid the spectre of being gazumped, then having all of your buying processes in place before making an offer will help. These involve having a mortgage in principle in place, a conveyancing solicitor and a surveyor in mind; all will help to avoid long periods of waiting which offer the opportunity to others to make a higher offer. When you make your offer on a property, you could also ask as a condition of the offer that the property be taken off the market immediately which will then protect you from other prospective offers.

Britain’s Gazumping Hotspots

Sheffield – 35%
Madistone – 32%
Cambridge – 28%
Birmingham – 26%
Manchester – 25%

The importance of realistic asking prices

Recent analysis from comparison site Zoopla has shown the benefits that are reaped when a property is priced correctly rather than over-ambitiously, with overvalued properties taking up to two months longer to sell.

In addition to a longer sale period for properties which are overvalued, the research also found that by dropping the price in order to attract buyers, these properties also achieve an average asking price of £12,000 less than their more accurately valued counterparts.

“Our research highlights the importance of accurate pricing and reveals the areas where there is the healthiest alignment between a seller’s expectations and what a buyer is willing to pay for a property,” said Charlie Bryant, managing director of Zoopla.

“When a home is valued too ambitiously at the start, or simply overpriced, the sales process can be derailed. Homes can languish on the market for much longer than they should and the vendor loses control of the sale, often leading to price reductions,” he pointed out.

“Agents in Salford, Driffield and Dronfield stood out in our report in aligning their vendor expectations with the realities of the market, and what a potential buyer is willing to pay for that particular house, in that particular location.

“The English and Welsh average sold price, which amounts to 96.3% of the asking price, indicates a market realism, and moreover a market that is transacting good values, despite wider macro-economic and political concerns,” he added.

This research shows the important part which an estate agent plays in those initial meetings, with an over-valuation extremely attractive at first, but damaging in the long-run. If you are thinking of selling your property, then complete your own research so that you can have open and honest conversations with your agent in order to list at a realistic value.

Tips on selling as the days get shorter

As the days get shorter, it is more important than ever to present your property in an appealing manner if you are going to attract potential buyers. With that in mind, we have put together some season-specific advice to help you find a buyer…

Let in the light
Never is it more important in the year to keep your rooms bright and airy than during the change between seasons. This is because of how quickly the levels of light fluctuate, turning your lovely property into a less-appealing version of itself, with dark rooms and corners. To avoid this, use uplighters to brighten up your rooms during viewings – this type of lighting can be easily placed into corners or areas which may appear darker. Furthermore, blinds and curtains should be drawn back to allow plenty of natural light and don’t forget to turn any lights on in cupboards etc. to create multiple sources of brightness.

Keep paths clear
During this time of year, leaves may start to fall from the trees leaving debris around your property. Ensure that your kerb appeal is kept to its maximum by clearing away any errand plants and debris from your property, especially on the path to your front door where potential buyers will most certainly be surveying. If you have the time, consider tidying up your flower beds and removing and shrubbery which may not be looking quite as lovely as during the summer months.

Clean, clean and clean again
Of course, presenting your property in a clean and tidy state is a given, but it’s also worth considering any other areas that you can spruce up in order to maximise the available light. Clean your windows regularly to ensure that they sparkle for prospective buyers and let in as much natural light as possible (this will also help with the aforementioned kerb appeal). Clean your front door so that it looks at its best – many of us will have white UPVC doors to match double glazed windows, and if this is the case then use some bleach to rejuvenate it.

Increase the pressure
You want your property to seem cosy and inviting, and the drop in temperature gives you the perfect chance to make your home comfortable and welcoming. Turn the thermostat up so that during viewings your property is warm and incentivises viewers to really take their time looking around before they brave the cold weather once more. If you have a fireplace, think about lighting it up or at the very least light some candles.

Government announces reforms to planning and Help-to-Buy

Housing secretary James Brokenshire has recently unveiled his plans to introduce new quality controls on housebuilders, whilst also implementing new legislation to try to prevent developers from selling houses on a leasehold basis through Help-to-Buy.

“We have long recognised that we have a responsibility to confront unfairness in the leasehold market,” commented Brokenshire. “Last year we consulted on proposals including the leasehold house ban and ground rent reduction.

“Today I can confirm we will go ahead with our original plan to reduce ground rents on future leases to zero, as opposed to a cap of £10 per year.

“And we will legislate to ensure that in the future save for the most exceptional circumstances all new house will be sold on a freehold basis. We are committed to taking bold action to reform the sector and will be pressing ahead as soon as parliamentary time allows helping us delivery our promise to make the home buying and selling process quicker, cheaper and easier.”

The housing secretary’s plans aim to help future homeowners in purchasing their first properties in a more timely and cheaper manner. These plans go hand-in-hand with the government’s pledge to deliver 300,000 new homes a year by 2020. According to the plans, if a buyer is sold a leasehold home then they will be able to get their freehold at no extra cost.

The Help-to-Buy scheme has been a flagship system that has been fundamental in first-time buyers entering the market since April 2013. From 2013 to 2018 the number of new-build property sales has increased from 61,537 to 104,245 – which can be largely apportioned to Help-to-Buy, with 38% of all new-build sales supported by the scheme.

Addams Family Musical

Thursday 27 February - Saturday 29th February

At the Jane Austen College, Norwich

Click here to read Addams Family Musical.