Latest news from Gilson Bailey

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.

The Rise in First Time Buyers

Throughout 2019 there has been a steady increase in first time buyers jumping onto the property ladder. Aberdeen buyers have benefitted the most, with some first-time buyers managing a real steal to purchase a house at a lower price than in 2013. However, the majority of Britain has seen first-time buyer prices retain an average cost which remains similar to the main market. The fair price has supported the first-time buyer market in having a fair shot at beginning their property journey. However, there are other aspects of the housing market that have also worked in favor of new buyers which are detailed below.

Brexit Bounce
It would be careless not to consider the effect that the upcoming general election and Brexit have had on the appetite of prospective buyers. But surprisingly, the number of first-time buyers has continued to rise and has been constant throughout the year, which is particularly impressive within this climate of uncertainty. The economic outlook is hard to predict due to a lack of decision making on Britain’s future from the country’s leaders, but what this has allowed is lower mortgage rates and favorable fixed rate deals. That, in turn, has opened a window of opportunity for first-time buyers who have snapped up this option.

A Helping Hand to Buy
The extension of the Government Help to Buy scheme is another enticement for first-time buyers with the deadline for opening a Help to Buy ISA extended to the end of November, allowing a last-minute spike in applications. It has encouraged the younger generation to consider home owning as a real possibility with the scheme allowing contributions until 2029.

According to HM Treasury data, a total of 234,074 property completions have been support by the Help to Buy ISA scheme. It has also resulted in reducing the median age of a first-time buyer from 30 years old to 28 years old, indicating that younger people are now entering the property market and reaching the milestone of buying a first home. This age is set to reduce further as more first-time buyers save for their deposits, so it’s clear that the scheme has been a real success as well as being a great help for buyers to help make their dreams become a reality.

Variety in the market
Finally, it’s worth noting that there is a greater variety of homes available on the market, which has only accelerated the stream of sales to first-time buyers. Survey findings concluded that younger buyers understood and appreciated period style features such as high ceilings, fireplaces, and bay windows which is something usually associated mostly with more mature buyers.

These characteristics have been described by those surveyed as extravagant and interesting. As such, these features are beginning to be incorporated into new-build developments which ensures that the character of British property is maintained with the continuing demand from all potential buyers looking on the market.

Continued Demand for Rental Property

Properties for rent are in particularly high demand as we come to the end of 2019, with the shortfall in available housing triggering a continual increase in rental asking prices.

The Royal Institute for Charted Surveyors suspect that the growth in asking rents will continue into next year, with the south of England seeing a staggering 3.5% rise and steady national average increase of 1.3% backing up their claim.

Nationwide changes
With the rental market in such good health, Wales’ National Assembly has taken steps to support tenants in the process of securing a rental property by writing an information checklist that landlords and agents must abide by. The checklist, set to hit the market in mid-December is a list of information that must be supplied to the prospective tenant prior to them paying the holding deposit.

This isn’t the first law change in support of tenants this year; in the summer, English legislators introduced the Tenancy Fee Act 2019, which prevents landlords charging additional fees other than those outlined. Despite the increase in rent prices, tenants have seen the Government introduce lots of support for their rental rights this year that is set to continue through 2020.

Build to Rent
Created to incentivize landlords to purchase lettings properties and to satisfy demand from renters, the Build to Rent scheme is expected to take off over the next few years. There’s plenty to consider for both, with property investors placing heavy consideration on location and transport links, being conscious of convenience as a key factor when choosing a home to rent.

It’s a massive assistance to renters who have different priorities to buyers and like the flexibility that renting provides. For example, a massive 85% of tenants are happy renting with no immediate urge to get onto the property ladder, with other life milestones being prioritised before purchasing property. 560,000 households are expected to be in the private rental sector by 2023 increasing the proportion of rental property by 2%.

Keep your eyes open
Concerningly, a further indication of the demand for rental housing can be shown in the rise of subletting scams seen in the market this year. Increased media coverage has exposed the frequency of homes that are secretly subletting and overcrowded; as well as causing issues for the landlord, it presents grave safety risk breaching several health and safety regulations. Regular property visits and inventory checks can help prevent this issue. Further support for landlords is to be considered in the future to refresh the justice process in the current system.

Green Living on the Rise

Fresh air, green trees, and birds singing…sounds like a simple yet picturesque dream, doesn’t it? Climate change and our environment have been hot topics for discussion across the planet this year, with a rise in awareness in part due to global activist efforts. But has that truly had an effect on how we live our lives in Britain?

Recent data provided by Property Wire suggests that a whopping 68% of UK residents would be mindful of ecofriendly features when seeking a new home, which is certainly heartening to hear. But what do we mean by the term green living?

Simply put, it’s a description of living environmentally friendly, to maintain the earth’s natural resources. This includes:

Building with sustainable materials
The property sector is making good headway when it comes to making eco-friendly changes to buildings to create sustainable living, with a heavy focus on making urban environments ‘greener’. According to the UK Green Building Council, 40% of Britain’s carbon emissions come from property which is a large proportion of the carbon footprint. Sustainable design is beginning to be woven into planning requirements, particularly with commercial buildings, to support the goal of reducing greenhouse gases.

Renewable energy and reducing energy consumption around the home
To aid the above, there is a big drive on making properties more efficient in their energy performance. Energy bills across Britain could be brought down by a staggering £6.1 billion if energy efficiency rates were brought up to a C ranking. Many energy providers are using renewable energy to recycle, provide customers competitive prices and simultaneously helping the planet, but you can also reduce the amount of energy used in your household to support this cause. Small steps such as turning lights and plug sockets off, turning taps off, and reusing rainwater for the garden can make a big difference.

Using better methods of transport for the environment
Using public transport, cycling, walking, and car sharing are all great ways to reduce pollution. Although this is not always an option for commuting, everyone can make small lifestyle changes to contribute. Even a change as small as walking to the shop instead of driving supports the reduction of pollution. Even little things can help!

Recycling items and packaging
It is a requirement for everything we buy in packaging to indicate whether it can be recycled or thrown with regular waste. Local councils make it extremely easy for households to recycle with waste collections for correct disposal of rubbish and items for recycling. Regular collection of rubbish, garden waste, recycling waste, and even glass is a big step to maintain the earth’s natural resources. Make use of the local support on offer to do your bit to support the planet.

Tips to Sell your Home at Christmas Time

There are some things that the British public simply cannot believe at this time of year; how cold it is, how dark it is and, above all, how quickly Christmas has come. Nevertheless, Christmas has indeed been, and if you are selling your home, or thinking of selling your home, you may be under the impression that it’s not the optimum time to bag a sale. Our top tips to sell your home over Christmas and New Year will show you that not only is it possible to sell your home during the festive season, it is a doddle.

Picture perfect

The average time that a buyer takes to look at a picture on a property advert is three seconds, so having the perfect image is essential in your quest to sell your home – especially at Christmas. When having your home photographed, it is important to think about the staging; ask yourself whether the clutter around your home has been put away, can you remove some of your personal items in order to create more space or give everything one last polish? Once you’ve ticked off those basics, think about the Christmas factor – do not include heavily decorated rooms in your photographs as they will detract from the space and may age your property if your home remains on the market in to January.

Keep the pine in line

Of course, at this time of year the Christmas tree has taken its place in our living rooms and other communal spaces, but make sure that the tree isn’t dwarfing the space it is in. We can all get carried away with the festivities, but this may not be the year to get the 7-foot Nordic spruce of your dreams – in the same way that cramming a king-size bed in to a single room will make the room appear cramped, an over-sized tree will also make your room seem smaller than it is. Buyers like to imagine their own furniture in potential new homes, so allow them the space to do so.

Serious offers only

Although some may suggest that Christmas and New Year is a difficult time to attract buyers to your home, what the period does provide is serious buyers. You can make the most of the serious buyers in December by ensuring that you see each property viewing as the optimum chance to sell – making sure that your home is in pristine shape and you are welcome and positive about the property and the area. Potential buyers can glean an image of what it may be like to live in the area from their interactions with you as the homeowner, so ensure that you are up-to-date about local schools and solely positive when they ask you any questions. Similarly, being flexible may bag your buyer as an accommodating vendor, who allows for viewings at irregular hours for example, could help clinch that crucial sale.

Preparation is key

Being organised could be the key in securing your sale. Make sure that your fixture and fittings list is put together, you have the legally required energy performance certificate and, if you have had work completed on the house, make sure you have the relevant consents. Solicitors can be the make-and-break in a sale scenario, with a slow solicitor frustrating both buyer and seller, so take recommendations from your estate agent and have an efficient solicitor all lined up, ready for a sale.

Being in a new home in the New Year can seem to be an impossible task, however by showing restraint with your festive decorations, and taking the appropriate steps to being prepared and organised you can certainly sell your home over the Christmas period and start your 2019 with the perfect gift – a new home.

Norwich Puppet Theatre

Performances and children's' workshops.

Beastly Belle 19 Dec to 26 Dec

Hansel and Gretel 27 Dec to 4 Jan

Click here to read Norwich Puppet Theatre.

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.

Tunnel of Light

A highly visited attraction in Norwich

From 14 Nov to 5 Jan

Click here to read Tunnel of Light.

Magical New Years Eve

A night of dinner, drinks and entertainment.

Tues 31 Dec from 6:00pm

Click here to read Magical New Years Eve.