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.

Top 10 things to know before buying your first home

So you’ve taken the leap and made the decision to buy your very first home. While joining the property market is exciting, it can also be expensive, and it definitely pays off to do your research. These top ten tips will explain some of the key elements of becoming a homeowner that it’s important to be aware of.

Get your finances in order
It’s important that you get your finances in order as your credit score will have an impact on your mortgage options. Make sure you pay all your bills on time and avoid making any bigger purchases around that time. Speak to a professional to get advice about how much you can afford. Don’t forget that there are lots of other costs attached to buying a property, such as solicitor’s fees, stamp duty and home insurance. When these all add up, you might reconsider the price range of properties you’re viewing.

Take the time to decide what you want
Take time to view different properties and create a list of what you want your new home to include in the process. Divide your wish list into must-haves and things you can compromise on. This will help you to avoid making hasty decisions and get you thinking in detail about your ideal home. Be realistic though, and ensure your list is appropriate to your budget.

Be flexible
Whilst it’s good to have a list of do’s and don’ts, it’s important to remain flexible. You could miss out on a perfectly suitable home because it’s located three miles out of your desired area or the bedroom doesn’t have a walk-in closet. Be open-minded when viewing different properties and think outside the box – with a little creativity you can do some wonderful things with the décor of a house or the look of a garden!

Get to know your local agents
A good agent should be well-informed and able to answer questions not only about the property but also the area you are moving into. Cast your net wide and visit a number of agents in the town. Make sure you meet them face-to-face and explain in detail what your requirements are - this will make them remember you and think of you when a suitable property comes on the market. Also be proactive and keep an eye on newly listed properties on their website and different online portals as great homes tend to get snapped up quickly.

Are you willing to invest in renovations?
Unless you’re specifically looking for a project, buying a property that needs renovation might not be the right step for you. Purchasing a fixer-upper can be a risky investment and you could end up with a money pit. If you do decide to buy a home in need of work, it’s advised that you get a thorough inspection to get a realistic overview of the property’s conditions. If possible, opt for an examination after a rainy day that will assess the state of the foundations and basement.

Learn more about your prospective home
So you’ve found your dream home and you’re eager to make an offer. Before you progress to the next step, make sure you learn as much as you can about your prospective new home. Find out how long it has been on the market, ask to see the utility bills and hire a surveyor to inspect the condition of the property. It’s a good idea to get to know the neighborhood as well to get a feel for the area. Is there a convenience store nearby? What schools are in the catchment area? What is your local pub or café like? These are all important aspects of day to day life that might influence your decision to make an offer.

Negotiate
The price of the property is rarely set in stone and the vendors are often willing to negotiate. If the property needs some work or your surveyor revealed any defects, use this as an argument to agree a more affordable price. You can use your estate agent to do this for you, however, as a buyer you will be the one making the final decision and should be in control at all times.

Get a good solicitor on board
Search for the right solicitor, someone trustworthy and someone you can rely on to work hard for you. Usually, you get what you pay for and this is definitely not the time penny pinch. As a first time buyer, you will most likely need someone more experienced to manage Stamp Duty charges, dealing with Land Registry and drawing up and explaining contracts. Avoid using the same solicitor as the sellers to minimise the possibility of a conflict.

Don’t feel pressured
Buying a house is possibly one of the biggest purchases of your life so it’s important you take time when making important decisions. It can sometimes feel like you’re under a lot of pressure to buy straight away but if you don’t need to move immediately then shop around. It’s likely you will be living in the house for years to come and it’s essential that you feel comfortable and happy in your surroundings.

Try to stay sane in the process
The whole process might take longer than you originally anticipate. It’s a good idea to focus solely on house hunting so you don’t overwhelm yourself. Juggling other big decisions, such as organising a wedding or planning to have a baby, whilst buying your first home can put a huge strain on your life and take all the fun out of the process. Buying your very first home is a big step in every person’s life and should you be remembered fondly.

Bury St Edmunds Hotspots

Here are some stats I pulled from the Land Registry you might find useful for the last year showing how many properties were sold in the town of Bury St Edmunds. Looking at five different areas by postcode you can see what roads have been selling better than others. There were 527 (2.75%) properties sold last year out of 19,135 in total.

(27.5% of total sold)
IP33 3 with 5653 homes, in the last year 145 of them 2.56% were sold
7 in York Road; Queens Road
6 in Out Westgate
5 in Victoria Road; Park Road

(23.1% of total sold)
IP32 7 with 3356 homes, in the last year 122 of them 3.63% were sold
The most popular roads were:
6 in Manning Road
4 in Sycamore Drive; Airfield Road; Lime Walk
3 in Blackbird Drive; Browse Close; Chaffinch Way; Codling Road; Mead Road

(20.6% of total sold)
IP33 2 with 4063 homes, in the last year 109 of them 2.68% were sold
The most popular roads were:
6 in Caie Walk; Wigston Road
4 in Hardwick Lane; Southgate Street
3 in Sexton Meadows; Nowton Road

(14.8% of total sold)
IP32 6 with 3705 homes, in the last year 78 of them 2.10% were sold
The most popular roads were:
6 in Forum Court
5 in Maltings Way
5 in Fornham Road
4 in Anderson walk; Norman Road; Raynham Road

(13.8% of total sold)
IP33 1with 2358 homes, in the last year 73 of them 3.09% were sold
The most popular roads were:
6 in Garland Street
4 in Churchgate Street; Guildhall Street; Bishops Road

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.