How Much Does Disrepair Put Off A Buyer?

How Much Does Disrepair Put Off A Buyer?


Welcome to the Gilson Bailey August newsletter.


Details Revealed On Planning For New Homes In England

A new national planning policy has been published by the Housing Secretary and has outlined the Government’s vision for new homes throughout the UK.

This revised national policy has a focus on giving communities the opportunity to have their say when it comes to developments in their area and hopes to set new standards for both quality and design.

Put into place earlier this year by the Prime Minister, this new framework aims to provide a full and clear set of guidelines that would help build new quality homes more efficiently.

There are a few key points that these new rules focus on, such as promoting high-quality design, stronger protection for the environment, building the right number of homes in the right places and greater responsibility and accountability for housing delivery from councils and developers.

Secretary of State for Housing – James Brokenshire – stated “Fundamental to building the homes our country needs is ensuring that our planning system is fit for the future. This revised planning framework sets out our vision of a planning system that delivers the homes we need.

“I am clear that quantity must never compromise the quality of what is built, and this is reflected in the new rules. We have listened to the tens of thousands of people who told us their views, making this a shared strategy for development in England”

Moving forward, local councils will be granted the tools to refuse permission on any new developments that they feel does not compliment the surrounding area or prioritise design quality.

In addition to this, communities will now have access to information on potential developments and design plans so that they can have their own input on the changes to their area, but also ensuring the new homes improve the area.

The new policy also has considerations for the environment, with strict rules in place to make sure that new buildings do not restrict any nearby wildlife and instead give it the opportunity to grow. This is in keeping with Defra’s 25 Year Environment Plan, which looks prioritise both air quality and protecting natural habitats.

While there is of course a focus on providing more homes throughout the country, the government wants to use this new policy to ensure homes are built in the right places, to help improve the housing market's current affordability issues.

Also included in this new initiative will be the Housing Delivery Tests which will be available from November 2018 and focus on helping councils increase the number of homes that are actually delivered and not just how many homes are planned for development.



How Much Does Disrepair Put Off A Buyer?

When viewing a property, we’re all on the lookout for anything and everything that needs fixing or could use a bit of work.

While we’d all love to find a home that requires no work at all, chances are whenever you buy a property, it will come with its fair share of needed repairs.

But what type of damage to a home is most commonly a deal breaker for prospective buyers? Well, GoCompare has sought to find this out.

New research from the comparison site has quizzed people on which types of disrepair would lessen their enthusiasm for a home and what would completely kill their interest in a property all together.

It was found that Damp was the biggest hurdle for buyers, with a huge 69% of survey participants stating that signs of damp on the walls and ceiling would force them to withdraw their interest in a home. This is understandable as damp left unchecked can lead to some very serious structural issues.

Not too far behind in the survey results was bad odours at 63% said that smells such as damp, food, cigarettes or pets would be a deal breaker.

Rotten windows and peeling paintwork took 3rd place in the results, with 59% saying that they would not put in an offer if they spotted these blemishes on a home.

As expected, not having a space to park your car is a big issue for 56% of buyers and it is no surprise that in todays always online world that 53% desire a high-speed internet connection. The same percentage of participants would be put off a home If there was any work on the property that was uncompleted.

Some of the other negatives that made the list were neighbours with a messy garden (48%), a dirty interior (46%), outdated electrics (46%) and poor natural lighting (43%).

GoCompare Insurance spokesman – Ben Wilson – offered his comments on the findings of their research, stating “Buying a home is a major investment and most people are put off by outdated properties or those in a poor state of repair. While dated décor can be remedied easily and relatively cheaply, major flaws from poor maintenance or badly botched DIY can be expensive to put right,

“A grubby home and untidy garden may suggest the current home owners are not only bad at housework, but may have neglected essential maintenance to the property,”



Three-Year Tenancy Agreements Proposed By Government

The private rented sector has seen its fair share of changes over the last few years and the Government recently proposed some more changes with the intent to offer long-term security for renters.

Historically, the standard lease for renting a home would fall into the range of 6-12 months long, however, this new proposal puts forward the possibility of a minimum three-year lease in the hope of improving stability for tenants.

While this proposal has been put out for consultation until the 26th of August, it has understandably caused a bit of a stir amongst landlords and investors.

There are still many details to be discussed along with some rules and regulations that would need to be put in place, but it does raise plenty of questions on how this type of change could impact the rental market.

Longer minimum tenancies would undoubtedly be a positive for tenants, who would now have the opportunity to secure a home for a longer period allowing them to settle down with some extra security and potentially avoid any costs that come with moving into and renting a new home.

As for landlords, the change could be a benefit depending on their portfolio. It is expected that small scale landlords may not like the idea of being tied down for a longer period, where as some of the larger investors with multiple properties would welcome the new rules for more financial security.

The Government's data revealed that on average, most tenants rent a home for just under four years, while the vast majority of rental contracts (81%) are six to 12 months long.

All of the details have not been revealed just yet, but the proposal does mention that it would give tenants the chance to leave before the end of the tenancy.

Secretary of State for Communities – James Brokenshire – commented on the proposal and the motivation for putting it forward “It is deeply unfair when renters are forced to uproot their lives or find new schools for their children at short notice due to the terms of their rental contract.

"Being able to call your rental property your home is vital to putting down roots and building stronger communities.

"That’s why I am determined to act, bringing in longer tenancies which will bring benefits to tenants and landlords alike."



Retirement Living Market Predicted To Grow By 50% By 2022

New reports suggest that the number of purpose-built retirement properties is set to grow considerably by 2022 due to increasing demand with downsizing becoming a more popular option for the older generations.

Research from Knight Frank has looked into the growing sector with the hopes of gaining some insight into how the market may change over the coming years and what will need to be done to meet the demand.

In total there are currently just over 720,000 retirement properties in the UK, three-quarters of these homes are social housing, but the research found that there are roughly 3 million homes required to meet the demand of those who’d like to move into a retirement home.

This demand is forecasted to increase with estimations of the number of people over the age of 65 set to grow by 20% by 2027, taking it to a total of 12 million people in need of retirement properties.

Over the last two decades, the retirement market has seen some change in terms of funding, while in the past the majority of homes were funded publicly since the new millennium approximately 54% of new homes built have come from private developers. This is predicted to rise to 78% within 4 years.

This has resulted in some experts calling on the government to introduce schemes and incentives to help those looking to downsize as it could potentially have a good impact on the entire market. With the older generations downsizing, larger family sized homes would become available for those moving up the ladder and in turn, smaller starter homes would become available for first time buyers.

Head of Retirement Housing at Knight Frank - Tom Scaife - shares this sentiment, he said “Going forward we rapidly need every UK local authority to have a cohesive plan for the delivery of retirement living - so they can be held to account for meeting the needs of their constituents. The government has committed to help those at the beginning of the property ladder with initiatives such as the ‘Help-to-buy’ scheme and stamp duty relief for first time buyers. These initiatives and support should not be constrained to the beginning of the ladder - support should be available at all stages of the property life cycle.”