Your Latest Property Market Update

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.

Selling during the back to school season

One-third of homeowners choose to buy or sell in early autumn, making now the best time to put your house on the market.

With children returning to school, could a move be on the cards for you?

If you are selling this September, here are some of our top tips...

1) Have a clear-out

The back to school season can be a busy time, with one in four also choosing to switch jobs and careers during this month compared to the rest of the year.*

So, having a simple declutter of your belongings and items can create a blank slate for people coming to view your home.

2) Maximise your storage

Maximising your storage space is an easy way to keep your home tidy at a low cost, which may then mean you're required to do less work in between any viewings that take place.

3) Plan for viewings

Don’t let viewings catch you off guard! Have a checklist of everything you need to do before a potential buyer comes to view your home.

Having a set plan of action will help you keep a clear head and get things done amid the back-to-school chaos.

4) Improve your home's kerb appeal

Two-thirds of buyers stated that kerb appeal was a significant influencer in their property purchase.**

Some top tips for improving your home's aesthetics are hiding bins, cleaning your windows and decorating your front door.

Are you ready to move this September?

Contact our property professionals today for helpful advice and guidance.

*Job search website, Monster

**Homeowners Alliance

Could you benefit from repaying your mortgage early?

The average homeowner will be 57 before they’re able to fully repay their mortgage, so paying off the debt early is a desirable financial goal.*

What is there to consider if you want to pay off your mortgage early?

If you are thinking of repaying your mortgage, do your sums.

When will you finish repaying your mortgage and what will your financial situation be like then? It's important to consider your options and review them frequently.

Here are a few options to help you pay off your mortgage sooner:

1) Overpay whilst you can

Ensure you have enough money to keep you going for at least three months before paying off your mortgage, as this is a good way to judge if now is the right time to get rid of that debt.

Most mortgages won’t charge you for overpaying, however, it’s always worth checking.

2) Consider remortgaging

Interest rates are at record low levels and there is more product choice for buyers than ever before. If there is a better deal on offer, it might be a good idea to remortgage whilst you can.

Remortgaging can help you reduce the size of your loan and avoid less favourable mortgage rates that will extend your mortgage term.

3) Reduce your mortgage term

Sticking with your current mortgage plan could leave you overpaying if your financial position has changed since you first applied for your mortgage.

If you can now afford higher repayments, you should consider reducing your term. By doing this and increasing your monthly payments, it’s a guaranteed way to pay off your mortgage sooner.

If you’re looking for expert advice regarding buying and selling, contact us today.

*Hargreaves Lansdown

Will working from home be your new norm?

Last year, the number of adults who worked from home inevitably increased to 37% over lockdown.*

Despite many people agreeing that working from home makes them feel isolated, 85% of homeworking adults now favour a "hybrid" approach of both home and office working for the future.*

Whilst job adverts that included home working have increased dramatically to three times the amount seen last year.*

Are you currently working from home?

Here are our top tips on how you can create a healthy working environment.

1. Keep moving

When we work from home, we tend to be a lot less active than in an office environment.

Exercise is the key to staying in good health, so a lunchtime walk has many benefits and will keep you productive for the rest of the day.

2. Look after your eyes

Looking at a computer screen for hours can be taxing on your eyes.

Aim to follow the '20/20/20 rule'. That means that every 20 minutes, look 20 feet away for 20 seconds, this should help your eyes recover from the strain.

3. Create boundaries

It can be tempting to work longer hours from home but remember to have boundaries between work and home life.

Having a home office can be beneficial as a designated workspace that you can leave at the end of the day.

If you don’t have a home office, why not consider picking a space in your home that will be your professional sanctuary.

4. Put a plant on your desk

Plants can play a major role in creating a more peaceful, yet engaging workspace.

5. Natural light is important

Natural light is good for your eyes and mind.

If your home office doesn’t have any windows, make sure you have plenty of lamps producing light.

6. Invest in a decent coffee machine!

Standing up and giving yourself breaks from your computer screen is important.

Getting a coffee can be a well-earned break from work and give you some extra energy to get through the day.

With career changes higher in September than any other month of the year, are you looking to relocate? Contact us today to see our latest listings in your area.**

*National Office for Statistics

**Job search website, Monster

Selling should always come before buying

House hunting takes time and effort, so when you've finally found a property you want, it can be crushing to lose out in favour of another buyer.

In a competitive market such as the one we've experienced so far in 2021, homeowners have their pick of offers and buyers, but there are a number of factors that you could consider in order to stand a better chance of being chosen.

First and foremost, whilst it's a negotiation, you want to be careful not to lowball them and risk offending the seller, especially where the house is fairly and accurately priced.

It also helps to have already sold your property or purchase without a chain holding you back. By being in this position, you will benefit from the following:

Sellers will take you more seriously

Having your current property listed on the market or Sold Subject to Contract (SSTC) will demonstrate your motivation to progress quickly with the sale.

You'll be able to avoid making any hasty decisions

If you secure your new purchase before finding a buyer yourself, you might find that you're willing to accept offers far below your expectations.

You have a better insight into your budget

If you anticipate selling at £250,000 but your agent helps you sell above asking price, you have additional funds to put straight into your next purchase, meaning you may be able to afford the home you want rather than settling.

In need of our expert advice? Contact us today to discuss selling, whether you're looking to start right away or in the new year.

The tricks to help you secure your dream home

With Christmas not far off, many homeowners and buyers will now be readying themselves for the new year, new home surge that will inevitably see high demand and interest levels across the UK.

Having spent one last Christmas at home, many people make the decision to buy shortly after the festivities have calmed down, which helps explain why website traffic to sites such as Rightmove see such phenomenal figures.

After Christmas Day in 2019, Rightmove reported a 231% surge in visitors looking at available properties for sale.

As a buyer, it's very likely you'll be competing for properties in January and February, as stock will gradually build up but not at the same rate as interested would-be homebuyers.

How can you make yourself the ideal buyer?

Having your finances sorted will put you in good stead with any seller, whether that is as a cash buyer or with an approved mortgage and lender behind you.

Property chains can be very fragile, so leaving things until the last minute or causing delays by not having the proper paperwork could lead to your sale or purchase falling through.

If you're proactive in your search, you'll also be better informed about local market conditions.

Your agent will be able to fill in most of the blanks, but having a good idea of how prices compare against each other will ensure you make sensible decisions and don't overvalue a property.

Are you looking for your dream home? Begin your journey by contacting us today.

Budget-friendly practices for November and December

At this time of the year, it's only natural to be more conscious of your budget, with the Christmas holidays likely to leave many families and households short on funds in the following months.

One in three Brits will get into debt by overspending over the festive season, resulting in a total debt of £2.5 billion per year across the UK or £200 per person, on average.*

The most expensive outgoings are gifts and food, with £102 spent on food for the day itself and £70 on drinks.

How can you have a budget-friendly start to 2022?

The first area to address when cutting back for Christmas is to set spending limits for gifts.

It can be very easy to go overboard when piling up presents underneath the tree. However, agreeing to a maximum amount or going for handmade and meaningful gifts can leave you feeling less guilty and strapped when it comes to January.

As food is the second main culprit behind overspending, it's also worth planning meals and events ahead of time, so that you don't lose track of where your money's going.

Christmas can be a wasteful time, so use your leftovers wisely and cut back where possible on unnecessary purchases.

Sometimes it can be all about presentation.

With the right dining room staging, you may not need to go over the top decorating, opting instead for inexpensive decorations or simple seasonal additions, such as candles and the right lighting.

Are you budgeting for a home move?

Whether it's for your first home or simply the next step on the property ladder, having the right start to the new year will massively improve your chances of having the financial flexibility to go ahead with your plans.

Remember to be mindful of your credit card usage over December, as overly relying on it could signal a level of unreliability to lenders and reduce your chances of being accepted for a mortgage.

If you'd like more information on how to get ahead with your property plans, contact us from our website.

*Milsted Langdon

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.