House Price Index

This month sees the number of sales agreed at this time of year up 7% on the same month a year ago, and it is the highest seen in May for ten years with the exception of a slightly better figure in 2014. However, there is a fall in the price of property coming to market of 0.4% (-£1,172), the first price fall at this time of year since 2009, and the first monthly fall this year. As a consequence, the annual rate of price increase has slowed to 1.8%, the lowest since April 2013.

Miles Shipside, Rightmove director and housing market analyst comments: “It now seems certain that we will have continuing political uncertainty, which the housing market traditionally dislikes, and with the first fall in June prices for eight years there is no doubt that the lack of stability is a factor. The price of property coming to the market had increased in June in every year since 2009, so buyer confidence has clearly been affected by inflation outstripping their pay packets and current political events. However, demand is still high and markets in some parts of the country seem to be getting used to coping with instability and are still strong. The high levels of sales being agreed show that the underlying fundamentals are largely unchanged with high first-time buyer demand which drives movement higher up the ladder, all aided by the cheap cost of borrowing.”

Markets performing at different speeds and levels depending upon geography and sector 
The national average figures conceal large differences between different local markets and property sectors, which appear to be reacting in widely variant reactions to the country’s overall air of uncertainty.

The typical first-time buyer sector with two bedrooms and fewer is now the fastest growing sector, and has seen newly-listed prices surge by 3.5% month-on-month and 5.5% year-on-year.

Shipside observes: “Those at the traditional starter level are brushing aside uncertainty, with demand being fuelled by the ongoing desire for home-ownership, government assistance, and mortgage repayments often being cheaper than rent for a similar property. Increasing prices in this sector have not been enough to shake off the wish to own your first home, whilst in contrast sectors higher up the ladder with a larger proportion of discretionary movers have seen the greatest recent price wobbles.”

The number of sales agreed compared to a year ago is up markedly more in the northern regions than in the South. All regions are up on the post-stamp-duty lull period of May 2016, with a national uplift of 7%, but the northern average of 11% far outstrips the southern average of 3%. This follows through to property prices with the London (-2.4%) and South East (-0.9%) regions recording the largest monthly falls in the price of property coming to market. These London and South East figures account for a significant proportion of the total market and have dragged down the national figure which would be in positive territory without these two slower-performing regions.

Shipside adds: “The swingometer may be leaning towards a buyers’ market in some parts of the country, having been given another tilt in that direction by political uncertainty, but demand for housing and lack of buyer choice are maintaining a sellers’ market in others. London and its commuter belt are proving to be a drag on the national figures, but are currently counter-balanced by continuing momentum in other parts of the country. Markets traditionally slow in the second half of the year, and with a slowing in the pace of asking price rises and the forthcoming months of political and economic confusion, the usual slower market in the second half of the year seems to be one of the few certainties in 2017. Having said that, the historic under-supply of the right property at the right price and ongoing strong housing demand are evidenced by buyer enquiries to agents picking up to a degree after the surprise election result. They were 3% higher on the Monday after the election than the Monday before, showing that people are getting on with addressing their housing needs.”

Agent’s View
Kevin Shaw, national sales director at estate agency Leaders, comments: “May was a bumper month for Leaders in terms of sales, despite the general election. Since the 8th June, even with the continuing political uncertainty, it’s very much business as usual for the property market. Whilst some people may be adopting a wait and see approach, many more are wanting – or needing – to press on with their property transactions. We have, however, started to see a slight hardening of attitude from buyers so sellers need to have realistic expectations and be prepared to be flexible in negotiations.”

Is the continued slowdown in house price growth 'a blip' or due to uncertainty over this month's General Election, asks the Nationwide Building Society.

What’s the latest?

House prices fell for the third month in a row during May, marking the worst quarter for the property market since 2009.

 

Homes in the UK saw 0.2% sliced off their value during the month, leaving the average property costing £208,711, according to Nationwide Building Society.

 

The annual rate at which prices are growing also eased to 2.1%, the weakest level for nearly four years, as the housing market continued to lose momentum.

 

The latest price slide comes after property values fell by 0.4% in April and 0.3% in March.

 

But Nationwide stressed it continued to expect house prices to end 2017 around 2% higher than they started the year.

Why is this happening?

The slowdown in the property market may have been caused by uncertainty due to this month’s General Election.

 

But Nationwide pointed out that previous elections had not had much impact on buying and selling decisions.

 

Instead, it suggested the trend may be indicative of a wider slowdown in the household sector as people feel the pinch from higher inflation.

 

It could also reflect growing affordability pressures after house prices have increased significantly faster than average earnings in recent quarters.

 

Robert Gardner, Nationwide’s chief economist, said: “It is too early to conclude whether the slowdown in house price growth is merely a blip, a reflection of the impact of the squeeze on household budgets, or is due to mounting affordability pressures in key areas of the country.”

 

There has been a shortage of stock for some time, as reported recently by Zoopla

Who does it affect?

While the fall in house prices might sound like good news for first-time buyers, it is likely to exacerbate the current stalemate.

 

The property market has been dogged by a shortage of stock for some time, with the number of homes on estate agents’ books remaining close to record lows.

 

This lack of choice is prompting existing homeowners to sit on their hands and delay trading up the housing ladder, which in turn leads to fewer properties being put up for sale.

 

The shortage of homes on the market has created a significant mismatch between supply and demand, which has then forced house prices higher.

Sounds interesting. What’s the background?

Today’s data is the latest in a raft of figures pointing to a slowdown in the housing market.

 

The Council of Mortgage Lenders said mortgage advances dropped by 11% in April, while the number of homes changing hands fell by 22% in the same month, according to HM Revenue & Customs.

 

But research by Zoopla found that consumers remained upbeat about the property market’s prospects with nine out of 10 people expecting house prices to rise in the coming six months.

 

Nationwide said given the current uncertainty about the UK’s future, housing market trends would depend crucially on developments in the wider economy.

 

But it added that while it expected activity and house price growth to slow in the coming months, in line with an easing in household spending, the subdued level of house building and the shortage of homes for sale were likely to provide support for property prices.

‘Fake agents’ are crippling independents’ reputations and livelihoods

Think ‘fake agents’ are no threat to your business? Think again. The rise of online agents - dubbed by some as ‘fake agents’ - are costing every agent without exception.

For as long as agency has existed, people have been setting up businesses which seek to cut out or undermine traditional estate agents.

The majority have failed, but not without doing some damage to the industry on their way down. They all make the attack on incumbent businesses the main thrust of their marketing - ‘Nobody really needs an estate agent’ is always the underlying pitch.

Their existence is not a problem but their marketing is.

These quirky, flash-in-the-pan, and sometimes very well-funded ventures (easier.co.uk in the late 90s spent £13 million and easyProperty is rumoured to have spent £18 million) always attract great publicity on the back of the notorious public loving-to-hate estate agency message.

This fact only serves to underline how even those who consider themselves successful, wealthy and experienced business people can completely fail to understand what good agents really do, and get their fingers burnt or lose their shirts in the process.

So, I agree with the commentators who ask why people are wasting time worrying about the increasing number of 'listing agents' - companies calling themselves estate agents but who in reality offer nothing more than an upfront paid advertising service.

Their existence alone is no more a threat to the industry than private sellers used to be in the pre-internet days. There will always be a small portion of people who will choose not to use full service agency, and either try to sell privately, or pay for an advertising service - almost always something they regret afterwards.

But, the marketing by these so-called ‘fake agents’ and the consequences of it are an altogether different matter.

It is the most damaging phenomenon the industry has experienced in the 20 years I have been involved, and directly impacts every single remaining company in the business, especially independent agents.

Even if you believe that your business is so strong in its reputation for outstanding service that you will continue to win as many instructions, you will have local direct competitors who have been affected, who will have lowered their fees as a result, which in turn means further downward pressure on your fees.

Every single independent agent in the country, without exception, is experiencing harder conditions as a result of the marketing campaigns of online competitors.

There is no single independent agent who has the firepower, profile or resources to combat these high-profile and expensive advertising campaigns.

The existing corporate agents, rather than fighting the threat, are jumping on the bandwagon and launching their own (or purchasing) hybrid businesses. Savills, once the paragon of first class estate agency service, has twice invested in YOPA. I see this as almost a tacit admission of defeat (and I say this as someone who has both friends and family who work at Savills).

This is why a group of leading independent agents have joined forces to create an organisation that, with the support of all independents, will have the firepower, resources and teeth to fight back against this destructive marketing which is damaging an already-poor industry reputation further.

CIELA exists solely to promote the collective interests of independent estate and letting agents by forming a collective voice, correcting public perception and lobbying government on behalf of the group of businesses who make up more than 80% of the industry, and more than 95% of the brands.

Without it, and in the absence of any other organisation representing exclusively independent agents, the industry is powerless to defend itself against the effective marketing by the so-called 'fake agents'.

I believe the powerful and relentless marketing continuously drip feeding from these firms is destroying the industry and agents must unite, or face the inevitable further damage to their reputation.

*Charlie Wright is CEO of The Charter for Independent Estate and Letting Agents

**This article was amended on May 18 to remove several references to Purplebricks.

Brighten up your home

Nothing makes us more motivated to make changes to our home than the small wonders of spring. With nature coming to life and the evenings lingering on, now is the perfect time to think about brightening up your home with subtle updates to make sure it’s summer-ready.

Emma Brindley, interior design manager for Redrow, talks us through five ways to make the most of your space during this delightful time of year.

Start from the outside

Take a moment outside your home and consider how you can turn up the kerb appeal a notch for spring/summer. Even a small lawn can look stylish and inviting with clever planting and shaping of shrubs, softened with blooming hanging baskets and classic lighting.

 

 

Let the sun shine

 

Open up your windows and doors at the first opportunity to let the idyllic scents of nature flow in to your home. Nothing beats the smell of freshly cut grass at this time of year and it’s a great way of naturally boosting your mood too. Allowing the natural light flood into the most used spaces in the home, such as the kitchen and dining area, will guarantee to make you smile and improve overall wellbeing.

Grow your own

Whether it’s herbs and spices planted in the garden or on the window-sill in stylish zinc containers, my favourite thing to see in the home right now is ‘greenery.’ Not only is this bang on trend for 2017, it’s a practical and positive addition to the home. Cook up a rustic, home cooked meal with the kids using your home grown herbs and teach them how important it is to invest in their hard work.

Fix it up

Now is the time to get all those little jobs done around the home that you might have been ignoring through the colder months. Give some time to fix up furniture, steam your fabrics and touch up your decorating. Think about injecting a fresh look with a feature wall. The colour doesn’t have to be stark – we love the rich, classic tones of Dulux’s Heritage Colour palette and we guarantee there’s something for everyone.

Spring styling

Use plants throughout the home as a starting point for your spring styling. Incorporate artwork inspired by nature, such as botanic prints and fern carvings, which can easily be found on the high-street. Contrasting textures are key so refresh your fabrics with new cushions and throws in light linens and chunky knits (it might be getting warmer but those evenings can still be chilly) for a look that will create the perfect sanctuary.

Regional Trends

House Prices in Bury St. Edmunds, Suffolk

The majority of sales in Bury St. Edmunds during the last year were terraced properties, selling for an average price of £260,724. Detached properties sold for an average of £385,379, with semi-detached properties fetching £269,849.
Bury St. Edmunds, with an overall average price of £276,208, was similar in terms of sold prices to nearby Ixworth (£284,593), but was cheaper than Great Barton (£423,439) and Thurston (£322,288).
Overall sold prices in Bury St. Edmunds over the last year were 4% up on the previous year and 18% up on the 2014 level of £234,351.

Surveyors expect residential property prices and rents in Ireland to increase in 2017

National property prices in Ireland are set to rise by an average of 7% in 2017 while rents are expected to increase by between 8% and 10%, according to the latest outlook review report from surveyors.


The report from the Society of Chartered Surveyors Ireland (SCSI) predicts that the biggest prices rises are likely to be outside of Dublin with the Leinster region named as the location likely to be the hottest in 2017.


The price of three bed semi-detached houses, the most popular house type in the country, is predicted to rise by an average of 9.4% nationally with the greatest increases across all housing unit types likely to be 11% for one and two bed apartments.


The survey predicts that residential rents will rise on average by between 8 to 10% outside of the rent control areas of the four local authority areas of the Dublin Region and Cork City Council area.


Annual rent increases are capped at 4% in these designated zones. The Government is reported to be planning to extend these zones to 20 more towns.


A lack of supply, public policy and projected economic growth may continue to inflate house prices, according to Ronan O’Hara, chair of the SCSI’s residential agency group, but he warned that the latter could not be taken for granted given the uncertainty caused by the UK’s decision to leave the European Union.


Indeed, 78% of surveyors outside Dublin believe Brexit will have a negative impact on Ireland’s economic growth and 50% in Dublin also doing so while 36% of surveyors across the country believe that Brexit has already had a negative impact on property activity market levels.


O’Hara believes that the figure show that there is uncertainty for the coming year. ‘The drop in Sterling has reduced the buying power of people looking to move here,’ he said.


However, he pointed out that the changes which the Central Bank made to its lending rules and the introduction of the Help to buy scheme are likely to contribute to an increase in activity in the short to medium term.


Some 80% of surveyors said that Help to will lead to price increases in the coming year. ‘While this is good news for vendors, struggling first time buyers will be disheartened. While rising prices will probably encourage more builders to start building houses it really is up to Government to tackle some of the underlying issues, including high construction costs, and to make housing more affordable,’ said O’Hara.


The report anticipates continued and strong rental price growth over the coming 12 months across all regions, fuelled by a sustained demand combined with a continuing housing shortage particularly in and around the regional cities.


Overall the greatest increases are forecast for both two and three bed apartments and townhouses at over 10%. The survey took place before the new restriction on rent increases were announced so while increases of over 11.5% were predicted for two and three bed units in Dublin, these will clearly not be happening now.


O’Hara said that while the proposals to extend the designated pressure zones to 20 more towns might be well intentioned they were also short sighted and in the survey the introduction of permanent rent control measures was ranked as the highest negative measure that will impact upon the supply in the rental market.


‘If this goes ahead it will discourage landlord investment in the rental market. Similarly anyone involved in buy to let properties will exit the market and it’s likely a lot of owner occupiers will purchase them. That might be good news for them but not for those renting as rents will continue to rise. The Government may be putting out one fire, but they are simply starting another,’ he added.


According to the report the estimated figure for new builds at the end of 2016 will be 14,800 which falls significantly short of the 20,000 to 30,000 required. O’Hara said that while demand for housing is greatest in Dublin the fact that commencements outside the capital are running three times higher is a concern.


‘This is a huge issue for first time buyers hoping to get on the property ladder. But given the concerns raised by our members over Brexit, it is also a huge issue for the country as a whole,’ O’Hara explained.


He added that the SCSI is urging the Government to cut the Vat rate on new houses. ‘It has worked for the hospitality sector, it would also work for the construction and property market,’ he said.

Remortgages drive growth in UK home lending market

Gross mortgage lending in the UK held steady in October but is being driven more by remortgages than new buyers due to a lack of supply in the current housing market.

It reached an estimated £20.6 billion, according to the latest figures from the Council of Mortgage Lenders and closely matches September’s gross lending total of £20.5 billion, but is 5% lower than October last year when it was £21.8 billion.

‘Housing market sentiment is holding up well, with demand still strong. This has led to a pickup in approvals, as expected. The more pressing issue is on the supply side, where the lack of private sellers continues to be an obstacle for would-be borrowers,’ said CML senior economist Mohammad Jamei.

‘For this reason, we expect lending in the months ahead to be driven more by remortgaging activity and less by house purchases. Remortgaging will be helped by competitively priced mortgage deals, which are encouraging borrowers to refinance,’ he added.

According to Ishaan Malhi, chief executive officer of Trussle, the figures conceal two very different stories in the mortgage market. ‘On the one hand, new purchases are seeing a slight fall as first time buyers continue to face challenges saving for a mortgage deposit. This is having a long term impact on home ownership,’ he said.

‘On the other, we’re witnessing a surge in remortgaging, up 17% in the last 12 months, as existing home owners take advantage of record low rates to secure better deals,’ he added.

John Goodall, chief executive officer of peer to peer platform Landbay, also believes that the push is coming from home owners changing to lower interest products. ‘Many existing homeowners are choosing to take advantage of low interest rates to refinance their mortgage. However, this growth in lending volumes belies a much more mixed picture across the sectors. Buy to let lending levels remain around 24% down on this time last year, as April’s 3% stamp duty hike caused an initial wave of transactions, but left in its wake a much more subdued market,’ he pointed out.

‘The fundamentals of the buy to let market are still pointing toward long term sustainable growth, but landlords have had a white knuckle ride over the last 12 months, and we hope to see them given some relief at next week’s Autumn Statement,’ he added.

The lack of homes for sale is also highlighted by comments from John Eastgate, sales and marketing director at OneSavings Bank. ‘Mortgage activity is in good health, reflecting growing consumer confidence after the European Union referendum and impressive resilience in a quite exceptional year. Borrowers are benefitting from record low interest rates, with remortgage activity buoyant, although purchases are constrained by lack of homes for sale,’ he said.

‘However, with the Government set to fall short of the 200,000 new homes it had committed to providing annually, the UK’s chronic housing shortage, and resultant rising house prices, are set to remain a major barrier towards lending growth. Tax changes on buy to let will only make matters worse. The mortgage market needs to be supported by house building of all tenures which is the only long term solution that can prevent further deepening of the housing crisis,’ he added.

Henry Woodcock, principal mortgage consultant at IRESS, believes that the mortgage market remains vibrant. ‘Low interest rates, a levelling of house prices and continued consumer confidence have all combined to maintain market momentum,’ he said.

‘It’ll be interesting to see if the Chancellor has any good news for the mortgage and housing markets in the Autumn Statement. It’s expected he will confirm earlier announcements of funds towards new homes to be built by small firms, but many would like to see further investment into rental properties,’ he added.

UK housing market expected to be strong and active throughout Brexit process

The path towards Brexit will dictate what happens in the UK housing market over the next few years but it is expected to remain reasonably strong and active, according to a new analysis.

There may be some turbulence along the way with article 50 to be enacted by march 2017 and the country set to leave in 2019, but the latest forecast from real estate firm JLL says that there will still be moderate growth with the residential market picking up again from 2020 onwards.

‘Demand will be undermined in the short term by uncertainty and a more subdued economy while supply issues will exacerbate, lending support to prices. The perennial issue for the housing industry remains supply and we are pleased that there seems to be fresh impetus in this regard,’ it says.

‘The big question, however, is whether policy initiatives target short term supply improvements, or look beyond the immediate horizon to create lasting, long term solutions,’ it adds.

JLL forecasts growth of 0.5% across the UK in 2017 and 1% in 2018 followed by 2% in 2019, then 4% in 2020 and 5% in 2021 but there is regional variations. Scotland is expected to be flat in 2017 then see 1% growth in 2018, 2% in 2019, 3% in 2020 and 4.5% in 2021. Wales is expected to do less well but catch up by 2020 with a forecast of prices falling by 1% in 2017, up 0.5% in 2018, up by 1% in 2019, by 3% in 2020 and then 4% in 2021.

Greater London is predicted to do well with growth of 1% in 2017, some 2% in 2018, then 3% in 2019, 5% in 2020 and 7% in 2021 but the prime central London market will not see as much growth with the JLL prediction showing prices likely to be flat in 2017 then 1% in 2018, 3% in 2019, 5.5% in 2020 then a slight reduction to 5% in 2021.

According to Neil Chegwidden, head of JLL residential research the real key to the outlook for the property market is the widespread positive attitude adopted within the UK. ‘Much will depend on the trade agreements negotiated, but with greater certainty the economic outlook should brighten along with consumer and business confidence as we head into 2019,’ he said.

‘We expect the UK housing market to be more subdued over the next two to three years. However, it will remain reasonably active with little chance of meaningful price corrections. Assuming Brexit negotiations are not too detrimental, we could see a rebound in London housing markets in 2020, before the rest of the country follows,’ he explained.

One concern on the horizon is that house builder activity could pull back from current rates of construction. ‘Although levels of new housing delivery were still woefully low prior to the referendum at least the direction of travel was positive and encouraging. This will now fall back again. We are predicting England starts to drop to 134,000 units next year,’ Chegwidden explained.

‘In London, we expect the house building slowdown to be more marked. Not only is London’s economy more vulnerable to Brexit but the housing market is also more reliant on investors, both domestic and international, and is hence more susceptible to buyer confidence,’ he pointed out.

But he also explained that the short term London supply prognosis implies that prices should bounce back when confidence returns. ‘The work stream of new supply should then pick up, albeit slowly.

While central and local government policies will be pro-development, we question whether they will really be able to outweigh the more cautious approach adopted by house builders in response to weaker market forces. Most worryingly, both the UK’s and London’s housing shortages will be even more acute by this point,’ he added.

The report also points out that the forthcoming five year UK economic outlook is particularly uncertain and much depends on the nature and detail of the EU exit. JLL’s base economic forecast assumes a hard Brexit with access to the single market sacrificed in favour of immigration controls.

‘Despite this, the economic prognosis is not too detrimental for the UK. There is clearly downside risk to this quite benign outlook, if trade agreements and financial sector passporting rights are not favourable. However, this base assumption also implies that there is significant upside potential too, so the economy could prove more robust next year and could also expand faster thereafter,’ it concludes.

Asking prices up across all of UK but sellers are too optimistic, index suggests

Residential asking prices in the UK increased by 0.7% since September, led by the East of England, but sellers could be being too optimistic with their pricing, says the latest index report.

Month on month asking prices increased by 0.7% in England, by 0.3% in Scotland and by 0.2% in Wales and are 4.4%, 5.3% and 1.3% higher year on year respectively.

The data from Home.co.uk also shows that supply is up by 11% year on year but much higher in the South and East of the country with a rise of 19% in London, 23% in the South East and 30% in the East of England.

A breakdown of the figures show that the biggest month on month rise was the East of England at 1.1% and taking the average property price to £342,915, some 11.5% higher than a year ago.

The next highest monthly rise was 1% in the South East and the East Midlands to an average of £394,837 and £211,328 with an annual rise of 4.2% and 5.5% respectively. Greater London saw prices rise by 0.8% month on month and 1.5% year on year to £538,775, followed by the South West, up 0.7% and 5% to £309,168.

Elsewhere the month on month growth was more muted with asking prices up 0.5% and 6.5% in the West Midlands to an average of £225,664, by 0.1% in the North West month on month and 4.2% year on year to £186,746, by 0.2% and 3% in Yorkshire and Humber to £181,459, and by 0.2% and 1.1% in the North East to £155,577.

The report points out that a key warning sign showing the fragility of the current market is that price cutting of properties whilst on the market has risen to a three year high across the UK and the firm is predicting price falls to come.

‘Supply is increasing rapidly in the East, South East and London. What’s more, the pricing of these new instructions is looking rather optimistic,’ said Doug Shephard, director at Home.co.uk.

He explained that London was the first to show an uptick in properties entering the market and the total stock for sale in the region has risen by around 24% which means that over supply is a danger and in the neighbouring regions, which would trigger a rapid downward spiral in prices.

‘Foreign investment was the saviour of the London market following the onset of the financial crisis, but Euro or dollar based investors will not be tempted back until sterling stabilises and that may take some considerable time,’ he pointed out.

Shephard believes there are also concerns about currency fluctuations and whether the Bank of England will have to intervene and raise interest rates to support the Pound which he thinks would be disastrous for the highly leveraged UK property market.

Bychoice ask where next for the housing market?

One month since the historic Brexit vote, Jason Hydes, Branch Manager of Bychoice takes a look at how the local market is shaping up.

The market in Bury St Edmunds continues to remain buoyant with many new houses coming to the market and no shortage of buyers registering their interest in them.

One of the significant benefits is that Interest rates are expected to remain below 2% for the next 18 months, and with 10 year fixed deals available at under 3%, there is a ‘once in a lifetime’ opportunity for homeowners to secure exceptional deals, reducing inherent risk. Upsizing is also more attractive, especially if prices are expected to nudge upwards at faster rates than mortgage interest. If you’re a first-time buyer or looking to upsize, this could be the perfect time, contact Bychoice on 01284 769598 to find out how this market could be ideal for you. 

Marcus Whewell, CEO of The Guild of Professional Estate agents, comments, ‘The market (outside of London) actually looks steady and predictable. Prices are holding up, properties are selling (on average) for at least 99% of the asking price and withdrawals are no higher than pre-referendum. Mortgage rates continue to be the most competitive in history.’

London is a slightly different story, as Marcus Whewell, CEO of The Guild of Professional Estate Agents, explains: ‘Brexit essentially acted as a catalyst to the inevitable correction to the overheated prices present in the Spring. Offers, prices achieved and completions all adversely affected at least in the short term. The London market has always fluctuated more than the rest of the UK as overseas and speculative investments help drive activity. However, recent sterling growth should help restore some confidence, as should the early political appointments and the conciliatory tone being adopted from Downing Street.’

Marcus comments, ‘Looking at the bigger picture, there are strong reasons to believe the residential market will remain healthy for the next few years’.

Supply and demand remains high; the UK population is expected to continue growing by up to 50,000 per annum and to meet demand this the UK needs at least 200,000 new homes every year. Currently less than half of this number are being built. This is only amplified by the changes in trends and demographics such as more single-person households.

If you are interested in selling your home contact Bychoice on 01284 769598.

Are you spending enough on property maintenance?

The maintenance and upkeep of a property is a daunting task. Depending on your level of skill and experience, you probably look at that garage door that needs painting or that garden that needs de-weeding and you probably feel like weeping. It’s easier just to ignore it right?
As a homeowner, a poorly maintained property can affect the value of your home and the value of your neighbour’s homes. If certain areas aren’t maintained then it can lead to further issues for other areas of the property.

If you’re renting a property certain aspects of the home, like the garden, are your responsibility to maintain. Double check your tenancy contract to find out what areas you’re responsible for.

In a recent survey, Lloyds Bank found that more than half of those asked spend £250 or less a year on the maintenance of a home! This is considerably less than the country’s average spend of £714. So why are so many homeowners so unwilling to spend money on the upkeep of a property?

Ignore the Problem
Some issues can be a symptom of a much larger problem. For example, an expanding brown patch on the ceiling below the bathroom is not a good sign. It can be incredibly stressful maintaining a home, and more often than not the issue announces itself just before a summer holiday or Christmas day. For some it’s just easier to pretend the issue doesn’t exist and carry on.

According to Mark Trafford, founder of home maintenance company Maintain to Profit, there is a growing trend amongst homeowners who will choose to ignore small maintenance issues, so that they can sell the property as a “fixer upper”. These people are taking a foolish risk as minor maintenance problems can quickly develop into something serious.

Lack of know how
That long running joke about people who struggle with DIY is based on fact. Many homeowners haven’t got a clue how to stop their gate from creaking or how to paint a wall, and paying for a professional to come do the job is scary because you don’t know how much it’ll cost.
In actual fact, spotting a potential issue before it can develop into a full blown disaster, and then hiring the suitable professional to perform some routine maintenance can help you to make money!

For example, say you’ve noticed a tiny leak in the roof. Getting that fixed quickly and by an expert can not only double the life of your roof, saving you money on more maintenance later on, but it can also add value to your home! Win/Win.

Lack of funds
As mentioned above, if there’s one thing you can count on when it comes to a serious maintenance issue, it’ll come when you have zero funds. Unfortunately, money doesn’t grow on trees and if it is a serious problem, the costs of fixing the problem can be astronomical.

Unfortunately there isn’t a lot of help for homeowners in this situation. The best action to take is to perform planned maintenance of multiple aspects of your home, so that a minor problem cannot become a serious one. It will still cost you money, but you have to ask yourself which is more expensive, fixing a leaking bath drain, or fixing the hole the bath made when it crashed through your damp, rotted ceiling?

If you don’t have an eye for spotting an issue in your home, or if the home is currently in good condition, you could follow the 15% rule. Many landlords choose to squirrel away 15% of the rent money for any required maintenance. For example, if homes in your area are rented for £700 a month, you could put away £105 a month away for a rainy day.

Some insurance policies do cover damage to a house, but only if it’s sudden. If they determine it was caused by gradual deterioration, which could have been prevented by routine maintenance, then you won’t see a penny. It’s also worth noting that if you don’t maintain something, say for example a roof, and it’s then damaged by something/someone else like a storm because you didn’t maintain it, then the chances of you claiming any money are slim.

Homeownership can be stressful but if you budget for regular maintenance and search for trustworthy professionals to carry out the work, you’ll end up saving yourself thousands of pounds and hours of sleep.

HSBC launches Britain's first fixed-rate mortgage below 1%

Fixed rate mortgages have dipped below 1% for the first time ever as the home loan war intensifies.

As competition among lenders hots up and the cost of borrowing for banks and building societies falls to new lows, HSBC is offering a two-year fixed rate deal at a record low of just 0.99%!

The latest dip is likely to have been driven further by the nations vote to leave the EU as investors seek a haven for their cash.
David Hollingworth, of mortgage brokers London and Country, described the rate as “absolutely ridiculously low … It sets a new benchmark for two-year fixed rates.” He also said that the fee was “big, but not the biggest.”

However, it will come as no surprise that the record-breaking deal is not available to everyone. In fact, people who want to take advantage of the low rate will have to fork out a 35% deposit as well as pay a £1,499 fee. It is also only available to those borrowing no more than £500,000.
A customer borrowing £150,000 from HSBC on the new 0.99% rate over 25 years will be charged a monthly payment of £565, bringing the total cost of the mortgage over the two-year deal period to £15,050 including the product fee.

Up until now, the cheapest fixed rate was a 1.05% two-year deal from Post Office Money back in August 2015, which was available only to borrowers with a 40% deposit and charged a whopping £1,995 fee.
And for those with a smaller deposit?
Halifax and Nationwide Building Society cut their rates for buyers with smaller deposits. Halifax now offers a two-year fixed rate at 80% LTV at 3.44% with a fee of £1,499 and its five-year fix at 90% LTV is at 3.99% with a £999 fee.

Nationwide meanwhile launched a two-year and a three-year fixed rate deal at 95 per cent LTV with the two-year deal starting at 3.89 per cent and the three-year starting at 4.39 per cent, both with a £999 fee. These are both available to existing homeowners as well as first-time buyers.

How has Brexit affected the property market?

As the property market expert in your area, I've been asked how Brexit is affecting the housing market, particularly at valuations. As a local estate agent I feel that this is a great opportunity to share what I know.  

I thought you might find it useful to see some very short-term figures that I share with customers and potential customers. 

The House Price Index was released to the media this morning and gives a national picture of house prices and activity over the past few weeks.

For lettings, the quarterly Rental Trends Tracker released last week will help shed light on the immediate short-term effects of Brexit and also the recent stamp duty changes.

Here are some key facts that may help answer questions: 

SALES:

Housing market steady post referendum

•Price of property coming to market falls 0.9% (-£2,647) this month, within usual expectations for the run-up to the summer holiday season

•Buyer demand in the two weeks since the surprise referendum result is consistent with 2014 although down on 2015: Same period in 2015 benefitted substantially from post-election boost so enquiries this year are down 16% compared to that period

◦2014 was not distorted by the election so is a better basis for comparison, and buyer enquiries are at the same level as the like-for-like two weeks in 2014

•Most agents report market momentum continuing due to shortage of suitable property for sale, buyers fearful of missing out on scarce choice, and affordability and availability of low mortgage rates

•Sellers seem undeterred – compared to the same period last year, the two weeks pre-referendum saw the number of new properties coming to market down by 8%, and the two weeks post-referendum saw them up by 6%

LETTINGS:

Buy-to-let rush boosts rental supply with biggest increase in London 

•The rental market received a boost of 8% more new properties advertised to rent in Q2 compared to the same quarter in 2015, following the Q1 rush to buy property to let out before the stamp duty charges came in

•Majority of new properties were in London, up by 22% on the same period last year, resulting in a small drop in the region’s average asking price this quarter to just under £2,000 per month

•Despite the increase in supply, all other regions recorded a rise in average asking rents this quarter, with the East of England’s 5% annual change leading the way

•Rental enquiries up 2% in Q2 2016 compared to last year, and up 1% in the two weeks after the referendum compared to same two weeks in 2015, as the lettings market shows no immediate signs of Brexit impact.

I hope you’ll find this information useful. The next House Price Index will be released on 15th August, so please keep an eye out for it.

How much has the price of your home risen by?

Homeowners in all areas of the UK have benefited from rising house prices in the last year, with the average property increasing in value by 7.1 per cent.

New figures from Land Registry show the typical price of a home is now £191,812, up from £179,096 12 months ago.

Many people have enjoyed even more substantial increases, with properties in London said to have grown in value by 13.9 per cent over the last year.

Homes in the south-east recorded a 10.7 per cent rise, while there were similarly positive results in the east of England (8.9 per cent), Wales (6.8 per cent), West Midlands (6.6 per cent) and south-west (6.2 per cent).

However, more modest house price rises occurred in some areas, such as the north-east (0.2 per cent).
As well as location, the type of property in question was found to play a key role in determining its capital growth in the year in question.

Flats performed particularly strongly, increasing in value by an average of 8.2 per cent to reach a typical price of £187,160.

It means flat owners enjoyed the most rewarding 12 months ahead of those with terraced houses (6.9 per cent), detached houses (6.9 per cent) and semi-detached houses (6.5 per cent).

With significant house price increases in recent months and continuing strong demand from buyers, now could be a shrewd time to sell a property. For more information on getting the best price for your home, contact Jason 01284 769 598.

Brexit is not necessarily bad news

And so it has come to pass, the UK is one step closer to leaving the European Union which means uncertainty will creep into property markets in the coming months, but it is not all bad news.

So many of the headlines have concentrated on how prices could fall, how there won't be enough workers in the construction industry unless steps are taken to address the skills crisis and how interest rates will rise.

But there are positives as well. Builders will, by all accounts be glad to see the end of EU red tape, falling prices will help first time buyers and in reality interest rates are unlikely to rise anytime soon and could even fall.

It must be remembered that the UK housing market is very much tied to the economy and wages so it is these two areas that will give us clues as to how the property markets will play out. Yes there is likely to be less investment from overseas buyers in the prime property market in London but this will be very short term as currency exchange will soon entice and buyers adopting a wait and see attitude.

The Chancellor George Osborne is making a statement today (Monday) but there is unlikely to be anything concrete regarding the housing market, he is much more likely to wait and see if anything needs to be done but probably takes the view that if the economy is shored up then so will the property sector.

Yes, borrowers who are looking to make the biggest financial decision of their lives want to see and feel that nothing is likely to risk their jobs or increase their mortgage payments but if interest rates come down and they can secure a five year deal on a very low rate then they should have some security. Indeed, economists at JP Morgan have predicted that borrowing costs could fall to zero by August.

There could be a reduction in housing transaction numbers until borrowers are more certain of what the position is but this is unlikely to be long term. Those who have to move house, for a job, for family reasons etc., will still do so and the lack of supply is not suddenly going to change overnight.

Once everything has settled down over the summer months the market is likely to pick up again later in the year. So the inherent under supply of housing should continue to underpin the market as the demand will always be there.

It should also be remembered that within the UK there are very different property markets. Growth in London has been slowly for some time, especially in the prime sector, so that may continue dipping, but markets in the north of England, for example, are unlikely to be affected to the same extent.

The general opinion seems to be that the result of the referendum is a shock, even among those in the Leave campaign, but the Bank of England, the Treasury and large companies will have made contingency plans. The UK housing market is too resilient and comes for a base of being a good long term investment whether for home owners or commercial investors. That will not change.

How much is my Bury St Edmunds property worth?

… how much has my Bury St Edmunds property gone up by?

how much will my  Bury St Edmunds property go up by?

Your local property guru can help! Just ask for Jason on 01284 769598
 

When is the best month to sell your house?

We all know that Spring is generally the best time to sell your house. The bright daylight will make your home look lovely and people tend to have clear schedules. But what about an exact month? We’ve dug a little deeper than just seasons and have searched out the best month for all different kinds of properties.

 

To sell a home successfully (for the most amount of money in the shortest possible time), it’s essential that you find the right buyers. This is, after all, what it comes down to – finding those people who are keen to move into your house and are willing to put an offer in straight away for its full value (not to be confused with asking price). Timing is everything when it comes to finding these buyers. They’re out there, but if they aren’t looking for a home when you market yours, there’s little hope in them finding it. This is why it’s difficult to pin down an exact month that’s best for selling houses; because different houses appeal to different buyers who are all looking at various times of the year. Therefore, it’s often best to think about the best month in relation to each various type of property. Here’s a good overview of what’s typically on the market in the UK.

One/two-bedroom flat
These types of properties tend to appeal to young professionals. Depending on the asking price, it might also appeal to first-time buyers. With Christmas out of the way, lots of young professionals start looking in February. They also tend to start searching in September, when they’re no longer busy with summer holidays and weekends away, and would like to get moving before Christmas.

Three-bedroom house
As classic family homes, these tend to attract second-steppers who are climbing up the ladder and either have children or are planning to have a family in the near future. Try to avoid selling this kind of house in school holidays when your target buyers may be busy trying to find childcare or running around after the children themselves. April is a good month to sell three-bedroom houses as the target buyers are likely to be looking now, thanks to Easter being out of the way and with the summer holidays a couple of months away.

Four-bedroom house
Likewise, these properties tend to appeal to families and are usually afforded by people who are moving onto their third or fourth property. You could go for April, as you would if you were selling a three-bedroom house. However, February might be even more effective, as you’ll avoid the masses of houses that are coming to market at this time. This is important as you need yours to stand out because your buyers are likely to be experienced in viewing houses and more selective in what they choose.

Five-bedroom house +
Larger houses and luxury properties are typically more difficult to sell, simply because there are fewer buyers out there and they are searching for something truly special. The best month to sell a luxury house is typically in April, just like the family houses. This is because it’s a busy time in the property market, and you need to get yours out there when the optimum number of buyers are searching. But be careful, lots of other properties will be coming to market at this time, so make sure yours is marketed efficiently and has superb photos.

Conclusion
So what do we think? Is it February or April? Well, we would say April for most houses. It’s usually free of school holidays, often has sunny days and it’s popular – and when lots of people selling, lots of people are buying, too.

Stamp Duty Land Tax: The Changes in 2016 and How They Affect You

The government has put in place an increase in stamp duty land tax (SDLT) for homeowners buying a second property that has come into effect from April 2016. The goal of this is to make more housing available for buyers and these changes could result in a hefty surcharge for some landlords making buy-to-let purchases.

To help keep all of you up to date we’ve put together an overview of the changes explaining exactly what they are, how they affect you and how to calculate the increase for any potential purchases.

What is stamp duty land tax? Stamp duty land tax is a lump-sum tax that applies to a purchase of a property or land costing more than a set amount. This tax applies when you buy a freehold property, a new or existing leasehold, a property through a shared ownership scheme or when you are transferred land or property in exchange for payment. This lump-sum can vary as it is based on the price and type of the property.

What are the changes coming in 2016? Currently the residential Stamp Duty Land Tax rate for property in the £0 - £125k band is 0%. However, any buyers purchasing additional properties in England, Wales and Northern Ireland will have to pay an additional 3% on each stamp duty band. This would mean that from April, a property bought for £100k would also come with an extra £3,000 in SDLT.

There are some exemptions from this increase such as If you are a landlord with a large portfolio and own fifteen properties or more, these changes will not apply to your purchase.

If you have purchased a second property that will not complete until after April you may still avoid the increased charges. If you exchanged contracts before November 25th- when the autumn statement from the government was delivered- you will NOT have to pay the higher tax rate.

Calculating your SDLT rate To make it easy for you to calculate the SDLT rate on any potential new purchases we’ve included a table below detailing the changes for each stamp duty band.

Band	Existing residential SDLT rates	New additional property SDLT rates
£0 - £125k	0%	3%
£125k - £250k	2%	5%
£250k - £925k	5%	8%
£925k - £1.5m	10%	13%
£1.5m +	12%	15%

It is worth noting that if the property is valued in one of the higher tax bands, the charges will apply across all bands. If you were to buy a property for £750,000 you would you pay 3% (£3,750) stamp duty on the first £125,000, then 5% (£6,250) on £125,000 to £250,000 and 8% (£40,000) above £250,000 making a total of £50,000 in SDLT.

You can find out the exact stamp duty by using the SDLT calculator on the www.gov.uk website by clicking here Our advice – act now!If you are looking to buy a second home or a buy to let investment there are considerable savings to be had if you act now. Also if you are considering placing your property on the market, then it would be advantageous to act now rather than later.

We have years of experience in the property market – so If you would like to find out more information on SLDT you should contact us today!

Top 5 tips on how to improve your kerb appeal

Looking to sell your home and wanting to give the best first impression possible? Maybe you just feel like freshening up the exterior of your home. Either way, we’ve got a great guide for you on improving your kerb appeal...

The Front Door
One of the most notable features of your property’s exterior and when done right can really make your home stand out from the crowd. You can put as much effort into this as you’d like depending on the amount of time you have and your budget. You could do as little as giving a good clean and polish or you could go all ways and give it a fresh new coat of paint and even add a custom house number to give it more of unique touch.

The Driveway
If you’ve been living in your current home for a while, there’s a good chance your driveway has seen better days. Over time, through natural wear and tear there is bound to be a crack or two, maybe a stain or even some weeds beginning to sprout through. Again, this fix is dependent on time and budget, but at the very least you can spend some time pulling out weeds. If you like to give it a full new lease of life then give it a thorough clean with a washer and look at replacing some of the slabs as it can make a surprising difference.

The Fences and Gates
If your property doesn’t currently have a low fence around the property then maybe consider having one installed, as not only does it give your property more definition, but it can also really separate your home from the main street making it feel a little more private.
If you already have a fence or gate to your property, it's worth touching up the paint and metal work to freshen it up a bit. Also, if the gate to your property squeaks, fix it, immediately. You don’t want any potential buyer’s first interaction with your house to be a squeaky gate that needs fixing.

The Garden
Once again this is another that you can choose to put some decent time and money into or go a simpler route, but having some greenery out front is a must. The minimum amount of work required for your front garden is to ensure the grass and hedges are cut on a regular basis and any unwanted vegetation is removed. If you’d like to go the extra mile, then you could plant a few colourful flowers and fix any brickwork that borders the garden.
If you don’t have a front garden, then it's worth adding a bit of green to the front of your home. Maybe purchase a few flower pots or pick up a couple of hanging flower baskets.

The Features
Another way to make your exterior stand out is by adding a feature or two. You don’t have to go too crazy and start trimming hedges in the shape of animals, but adding a unique item to give it character can go a long way. These features can be quite varied and you can be as creative as you like, from bird baths to sculptures to landscape lighting, features like these can give the home some real personality.