Latest news from Gilson Bailey

Supply and demand outstrips Brexit concern

With the Brexit date being pushed back once more, it would appear that supply and demand for property is now the driving factor in the market, with Brexit taking the back seat in terms of market-driving factors.

In a recent survey from property investment company SevenCapital, nearly 69.5% of investors continued to invest in the United Kingdom despite the spectre of Brexit. Indeed, this confidence in the United Kingdom property market is echoed by international investors, with nearly 95% of the Hong Kong respondents believing that Brexit isn’t a critical factor in their investment decision.

SevenCapital points out that the Sterling has risen in value – a better indicator of fiscal stability – and this outweighs any potential impact that Brexit may have levied upon the market. With the average price of properties increasing last month by over 1% or £3,347, according to Rightmove, then house prices are also reflecting this upturn in the market.

In terms of the rental market, rental yields have also grown in recent months with the best performing areas in Birmingham and Manchester seeing yields driven up as much as 10%. With new changes in the rental sector such as the Tenant Fee Ban and Section 21 changes, tenants and potential tenants should be feeling more empowered in terms of their rights which should encourage more renters into the market.

Despite the headlines that Brexit has provided of late, it is evident that other factors are driving the property market, both sales and lettings. A key point to note is the lack of housing supply and increased demand of late with this duality keeping the market buoyant, despite any political uncertainties. With first-time buyers now at record levels and keen to buy, there is a whole new swathe of potential buyers entering the market which is creating an extremely competitive sales environment.

One in six parents remortgage for children

With interest rates remaining incredibly low and competition amongst lenders producing some of the most favourable finance options ever seen, many are remortgaging in order to benefit from cost savings. Rather than simply easing the financial burden, however, recent research has shown that many parents are remortgaging in order to gift the extra money to their children.

 

Price comparison website MoneySuperMarket has found that one in six parents who remortgage their home then gift some of that extra cash to their children, with the average financial contribution standing at £9,050 per child and nearly 10% of parents giving over £20,000.

More than a third of the children who receive the financial gift utilise it as a deposit for a property, whilst others use it to go travelling (11%), buy a new car (11%) or pay for ‘everyday essentials’ (9%).
Rachel Wait, consumer affairs spokesperson at MoneySuperMarket, commented: “Our research found that 15% of parents released equity when they remortgaged to help their children. However, you’ll only be able to do this if your property has gone up in value and you’ll need to be sure you can afford to keep up with your new repayments.

“It’s also important to factor in the costs associated with remortgaging, such as arrangement fees which can be as much as £2,000, as well as legal, admin and valuation fees. Try to be realistic – only release equity to help your children with life events if you can really afford to do so.

“Also keep in mind that because a mortgage takes so long to pay back, remortgaging may not be the right option for everyone – there may be cheaper ways of getting a cash sum. It’s important to look at all options and shop around before making a decision.”

Landlords return to the market

Three years on from the Government passing buy-to-let tax and legislative changes, which resulted in a 3% surcharge on Stamp Duty on the purchase of additional homes also encompassing buy-to-let properties, it appears that landlords are now returning to the market.

Statistics from an independent estate agent have indicated that there has been an almost 8% increase in the number of landlords registering to buy over the last month, showing that the feeling in the market is overwhelmingly positive. With investors both national and international still wholeheartedly positive about the state of the market in the United Kingdom, according to SevenCapital’s Brexit survey, lettings would appear to be a strong bet once more.

Demand for city centre properties is now at an all-time high; in Birmingham, for example, between 2011 and 2016 around 8,000 homes were completed, whereas demand was closer to 20,000 showing the extent of overdemand and undersupply. This provides a stellar opportunity for landlords looking to invest in a city-centre location in order to reap the highest possible rental yields.

Rental yields by room, an increasingly popular option for landlords, are showing extremely positive values year-on-year; with the country as a whole reporting an average rise of 11%, according to the rental index from Ideal Flatmate.

With the recent spotlight on the rental market from the Government, renters and potential renters will be feeling buoyant in terms of their rights and responsibilities which should embolden them to rent a property, whereas previously they may have been more hesitant to take the step. This newfound confidence amongst renters should provide further comfort to landlords, knowing that there is a strong contingent of potential renters ready to move into their property.

Top tips for your bathroom

It’s been a long day at work and you’re a little stressed; what better than a relaxing, hot bath to unwind and loosen up? Bathrooms have become sanctuaries in our homes in recent years, with innovative design and outstanding comfort at the heart of all good bathrooms. If you’re thinking of updating your bathroom, then we have some handy hints and tips to help you create a space to relax in.

Small bathroom ideas
A clawfoot tub in the centre of a decadent room is the dream for many of us, but the reality is that any well-designed bathroom should consider space and practicality at its core. If you have a smaller bathroom, or a room that is an awkward shape, then embrace the space and look for solutions, not problems! High storage allows you to make the most of the room, and naturally draws the eye upwards giving the feeling of taller spaces. If storage is paramount, then think about utilising the space under your bath – all you need is an opening bath panel that you can close and open when needed. To give the illusion of more space, include plenty of mirrors in your bathroom, as well as objects with mirrored or shiny surfaces – this will reflect the light around the room keeping it bright and airy.

Bath or shower?
Everybody has a preference for either a bath or shower, it is all down to personal inclination. If you’re feeling radical, however, then skip the bath altogether and go for a luxury shower in your bathroom – if you use glass screens then the space that this creates will give a real feeling of luxury. Exaggerated shower head sizes, and multiple shower heads will enhance this feeling of spa decadence, and the notion of bathtubs will long be forgotten.

Floorspace
A floor can make or break a bathroom in terms of the style stakes so the smallest of changes to your floor coverings can have a big impact. If you’re lucky enough to have quality floorboards in your bathroom then make the most of them by sanding them back and painting them – the rustic aesthetic is timeless and easy to maintain. A classic white paint will keep the bathroom crisp, but experimenting with other colours (especially pastels) will also add some interest to the room. Tiling your bathroom floor is a preferable option due to the longevity of the finish, and despite recent trends towards ornate tiling and Moroccan influences, we would recommend a neutral tile for bathroom floors which can be accented with painted walls and accessories.

The small stuff
The smallest details can have the biggest impact in our bathrooms – matching accessories around the room give a cohesive feel to the room, from soap dispensers to toothbrush holders…they can all make a difference. Keeping the walls and floorings fairly neutral in the bathroom are always a good idea as they are then easy to maintain and, most importantly, look clean and fresh in a space where cleanliness is next to godliness. Don’t worry about creating a bland space, however; you can add colour and interest through your bathroom accessories – these can be much more bold in design in order to add pops of colour around the room.