The latest from Gilson Bailey

Housing supply and demand both up

If you’re of the mindset that the property market is in the midst of a period of difficulty, then the latest figures from the National Association of Estate Agents (NAEA) will surely change your mind, with both the supply of housing and the demand for housing at increased levels proving the market’s current health.

The NAEA Propertymark’s latest figures have shown that the supply of available housing increased by 20% in December. The number of properties reached the highest level for December since 2014, with housing supply per branch increasing to 42 – an increase from 35 per branch in November. Simultaneously, the number of house hunters also increased by 8% in December, with overall demand up 13% year-on-year.

Mark Hayward, chief executive at NAEA Propertymark, said: “This month’s findings prove that despite the current political climate, people still want to move. There is movement in the market with demand from house hunters up 13% year-on-year, and the supply of available properties also rising. Although the number of sales agreed hit a 12-month low, this is something we always see in December, with Christmas festivities typically taking priority over any plans to buy or sell.

“While many are adopting a ‘wait and see’ strategy until there’s further clarity over what Brexit might mean for the market, there is choice for those who want to buy now, and there are people on the market looking for new homes.”

First-time buyer sales also showed an increase in December, with the number of properties sold to the group increasing to 24%. With first-time buyers integral to the health of the property market, rising statistics in terms of their buying potential is always a good indicator towards the viability of the market.

As we move further in to 2019, it is difficult to predict whether the health of the market will remain consistent in the face of political instability and the financial effects of this lack of consistency. On the other hand, there are other macroeconomic conditions which are favourable for the health of property across the country, such as historically low interest rates and the relative ease to obtain mortgage credit. These conditions mean that more people than ever are in a position to take out a mortgage and purchase a property, with schemes also available to alleviate the trouble which some find in saving for a deposit, and this increased demand should shore up the market even after Brexit has (or indeed, hasn’t) taken place.

Buyers rush to beat Brexit: mortgages up

Research from chartered surveyor e.surv has shown that mortgage approvals reached a peak of 66,390 in December of last year, which amounts to a 7.8% annual increase. This seasonal rise has led to claims that there is a pre-Brexit rush to purchase property, and that the political uncertainty arising from the imminent break with Europe is actually fuelling current demand in the property market.

Commenting on the figures, Richard Pike, sales and marketing director for Phoebus Software, said:

“It is hard to talk about anything at the moment without mentioning the ‘Brexit’ word: it is all-consuming and there is little doubt that it continues to affect the housing market.

“The fact that house purchase approvals were up in December suggests that people are planning ahead and making their move before the March deadline. Interestingly the number of remortgage approvals took a dip compared to the same month in 2017, which bucks the trend throughout the rest of the year.”

“Nonetheless, I would expect it to be the remortgage sector that will be keeping the mortgage market going in the coming months, as we wait to see how our exit from the EU pans out.”

Throughout the year, types of mortgage being approved also reflected the influx of first-time buyers in the property market, with mortgage products offering loans at 95% of a property’s value increasing in popularity.

Data showed that over a quarter of mortgages approved in December were taken out by borrowers with a small deposit (less than 20%), and this was also the case in November. A key step-change in property has been the introduction of government schemes in order to alleviate the headache of saving for a deposit, and these statistics show that this is having some success in the marketplace.

Tony Sutton, managing director of mortgage brokerage group Specialist Financial Services, said lenders have become more competitive as they seek to protect their market share.

Mr Sutton said: "There is a wider choice of products available, serving a broader range of people with more sensible underwriting decisions.
"Lenders are trying to maintain market share and have increased the terms they are willing to offer."

Such an increase in mortgage offerings has clearly made the process of gaining a mortgage easier than ever before – with some lenders even offering 100% mortgages on properties in an effort to maintain their place in the marketplace. With more options available offering more flexibility, it is no wonder that mortgage approvals have increased, which bodes well for the year ahead for property.

What will devalue your home?

One of the key things we focus on when we own a home is how to add value to the property and make it more sellable for the future. However, a question which will also help you to achieve your property’s best potential is what are the top things that will devalue your home? Here are some of the key factors that National Association of Estate Agency (NAEA) members have experienced as having a negative impact on property value.

1) It’s all about personality

We all have our own taste and style, or lack thereof and of course the desire to make our homes reflect our personalities is only natural, but personal tastes can become a sticking point when it comes to selling up. Maybe you love a particular football team, or you think that glitter is an absolute necessity in the bathroom, and if that is the case then the NAEA recommends redecorating before taking your home to market. Homes which are decorated in more neutral colours are typically the most saleable as buyers can envisage how their possessions would look in the space.

2) Tip-top or big flop?

If your property is in tip-top condition, then it goes without saying that the value of your home will remain strong – and the desirability factor will certainly come in to play as people like to buy properties which they can move straight into without having to do any work. Not only will the photographs which market your property look better, viewings will certainly go more smoothly if your home is in good condition; having to explain cracks in the wall, single-glazing or peeling wallpaper can be a deal-breaker. Similarly, the basics of ensuring your home is clutter-free, clean and fresh-smelling will all aid in your quest to gain the best possible price for your property.

3) In the deep end

A swimming pool may sound like an attractive feature, and the cultural kudos of having such a feature may seem alluring at first, but the NAEA has shown that a pool is, in fact, a hinderance. With the famed British weather not being particularly conducive to a pool, buyers often see pools as an expense due to their maintenance fees and the volume of space they take up. If you do have a pool that isn’t being used, then it may be a good idea to fill it in and eradicate the potential problem that buyers see when they come across the feature. On the other hand, if your pool is in good condition then selling in summer when it looks its best and buyers can imagine themselves making the most of it could be a positive selling point.

4) Permission granted

Often, increasing the size of your property is a sure-fire way to add value to it, with the extra floorspace also very attractive to buyers. Extensions and additions can become a headache, however, if you do not have the appropriate planning permission and building regulation documents. If you do not have these documents, then prospective buyers will often request for them before agreeing to a sale, meaning you will have to pay for them retrospectively.

5) Knot a good sign

Japanese Knotweed (Fallopia japonica) is a fast-growing invasive weed which is extremely difficult to eradicate, making it quite the nuisance. With its aggressive characteristics, Japanese Knotweed can significantly damage the foundations of a property thereby making it at risk of subsidence and potentially causing thousands of pounds of damage. Due to the difficulty in getting rid of the weed, many buyers would be put-off of a purchase if they were cognisant of its presence in a property.

“The house-moving process is undoubtedly stressful, so it’s important to know what could add value to your home and what might detract or even completely put off potential buyers,” Mark Bentley, president at NAEA Propertymark, commented.
Bentley concluded: “You can ask friends or family for their honest opinions, or your estate agents can help advise on any small changes you may want to make before placing your home on the market.”

A basic guide to decorating

Flick through the pages of any magazine these days or scroll through the popular Pinterest app and you’re likely to see endless images of chic properties with timeless décor. For those of us that are blessed to be able to colour-match and accessorise effortlessly, this is an entirely attainable vision; however, for the rest of us who are a little more challenged in the decorating department, it can be tough to know where to start. Read through our basic guide to decorating and we will provide you with some guidelines which are sure to help you turn your home in to a real page-turner.

Start scheming

So, you have decided to revamp a room, you’re excited and you just want to get the paint brushes out but hold on…you need to take a moment and think about what you really want! Taking a moment or two to plan will help to ensure that the effort you’re going to is really worth it, and having an overall concept will hold all of the interior elements together. Ask yourself what you like and dislike about the room currently and how you want the room to feel - cool and trendy or warm and welcoming? These simple questions will help you to focus in on how you’d like the end result to be and using apps such as Pinterest or Instagram will help you to decide on overall concepts. Creating a mood board for the room will help to streamline your ideas and will serve as a reference throughout the entire decorating process.

Stay in neutral

It may seem like a safe or unimaginative option, but neutrals are timeless when it comes to decorating. When you have a neutral palette to work with, you can layer colours and textures on top of the basic colour scheme in order to achieve your desired look. With new trends popping up seemingly every other day, having a neutral colour scheme allows you to easily change the feel of your room simply by updating the accessories and soft furnishings. You can also add in vibrant pops of colour to lift your room when using a more neutral scheme, with accent pieces such as side tables and upholstery offering some interest in to your colour palette.

Softly, softly

Soft furnishings can put the va va voom in to your room! Having strong accent pieces, as well as coordinated soft furnishings such as curtains, throws, pillows and rugs create a more coherent and cohesive atmosphere in a room. Rotating which soft furnishings you have in your room seasonally works really well to make your room feel up-to-date and contemporary; for example, using a blue rug and pops of yellow during the longer winter months, or some glittery cushions for the festive period. These pops of colour and print will have the desired outcome of a tasteful and chic room.

Simplify

Don’t be scared to leave spaces empty in your room. Horror vacui, a fear of empty spaces, is evident in so much of today’s culture with a tendency to want to display all of our knick-knacks throughout our homes. When you have gone to the effort to stylishly decorate your room, don’t ruin the hard work by then adding in too many objects; instead, let your decorating do the talking for you. If you want to display some of your own items, then ensure to group them and use the rule of thirds; group three objects together in a display rather than two. Groupings of objects which vary in heights, shapes and textures but are related to one another are the most effective for displays; for example, grouping three candles which are different heights but are the same colour.

When renovating a room, it is easy to feel overwhelmed, which is frequently why we shy away from decorating. However, we would recommend taking your time, planning your renovations carefully with a budget and enjoying the process – updating your home will add value to your property, after all, as well as giving you a beautiful home to relax in after a tough day at work.