First-time buyers more active since stamp duty cut, Top Tips for Buying a Fixer-Upper, Plus More

Welcome to the February edition of the Town & Country Markyate newsletter.

In this month's edition, property demand in the UK is up by 9%, statistics have revealed that first-time buyers have become more active, we share a guide to buying a second home and we share some top tips for buying a fixer-upper.

UK property demand is up by 9%

 

New reports from Rightmove have shown signs of a busy 2018 for the UK as it looks like many people are looking to move home this year.

The latest figures from the online property portal have shown a huge rise in the number of people looking for a new home. While an increase in activity is expected each January, since the beginning of 2018, the website has seen an even further increase of 9% in comparison to January of 2016.

This has resulted in more than 4 million visits to the website per day, indicating a huge surge in people looking for their next move.

While the number of online visitors has grown substantially, the number of sales agreed took a fall towards the tail end of 2017, dropping by 5.5% in Q4. This could mean that buyers are becoming slightly pickier when it comes to purchasing a property.

Rightmove Director, Miles Shipshide offered his comments on the recent figures, saying, “Considering some of the gales that buffeted the market in the latter part of 2017, these early readings for 2018 show that there is currently a good following wind of search activity

“To keep this year’s initial buyer momentum with you rather than against, serious sellers should note that all regions are currently selling at a slower rate than a year ago, indicating choosier buyers.”

The price of homes has also seen a slight jump in January of 2018, with most homes seeing a 0.7% or &2,067 jump in value last month on average.

As expected the type of home to see that largest rise in value this year so far are those suitable for first-time buyers and exempt from stamp duty charges. Homes with 2 bedrooms or less rose in value by 1.1% in January alone, while homes more suited for second-steppers saw an increase in value of 0.4%

Unfortunately, for buyers, the number of homes available for sale has not changed at all, as the average number of properties per estate agency branch has hovered at 42 since the same time last year.

Some property experts suggest that the lack of supply could create competition between buyers, especially those taking their first step onto the property ladder, meaning the money saved due to the removal of stamp duty land tax could just end up being spent elsewhere.

This is a sentiment shared by the Director of Mortgage Advice Bureau, Andy Frankish, who commented, “the ongoing lack of stock in popular areas will possibly lead to the potential for prices to galvanise where there isn’t enough stock once the market gets into it’s full stride within the next few weeks. Whether that will be further fuelled by competition between first-time buyers remains to be seen, and it would be shame if the savings that they were able to make in SDLT were instead eaten up by having to pay an increased price to get on the ladder, which probably wasn’t what the Chancellor had in mind.”

Buying a second home: What to consider

 

Whether it’s a little country escape, a place by the sea or even somewhere abroad, who wouldn’t love a home away from home?

Whilst this may be a lovely daydream, the reality of owning more than one property can be complicated, with several extra factors to consider before making your dream a reality. We’ve put together some facts you should consider before taking the leap into second home ownership.

Why do I need this property?

You will need to have a serious heart-to-heart with yourself and your other half about the purpose of buying your second property.

It is important to bear in mind that you will need to go through the stressful process of buying a home, with the added stress of the property not being in your local area, as well as furnishing and decorating the property, and the end result is you own a property you will probably only visit a handful of times each year.

There are other options available to you depending on what your needs are, for example, if you’re dreaming of a holiday home why not look into a timeshare? Or if you’re a professional looking for accommodation in the city, you could consider renting.

Location, location, location

The location of your property will affect every aspect of your ownership. Whilst it is lovely to have a home that’s 150 miles away from all the day to day stress, that’s a 300-mile round trip every time you’re looking to visit.

If you are considering a holiday home and would like to act as a landlord when you aren’t occupying the property, then you will need to consider how you will keep tabs on the property when you are so far away. Little details like finding trustworthy tradesman become more complicated when you don’t know the area.

You should also consider whether you know the area you’re looking to buy in well enough before you finalise anything. For example, cheap property in the city might be in a student area. It’s worth doing some research before making the move.

The cost of running your second home

You will also need to consider the cost of running your second home. You will need home insurance, broadband, telephone, electricity, water and heating as well as paying the various taxes that come with owning property.

Whilst you won’t be paying the same rates (because you won’t be there all the time) however, certain bills (like the internet) will stay at the same rate no matter the amount of usage you get from the service.

You will also need to consider taking steps like keeping your heating on during the winter so that the pipes don’t freeze.

What about the Mortgage?

Second homes are not exempt from taxes like stamp duty and capital gains tax, which will add to the cost of purchasing your property. You will also have to decide whether to take a loan for your property or to remortgage your main home.

For any help or advice when it comes to property, speak to us at Town & Country. Our team would be more than happy to help you with the right information to get you started and can help you find a home to suit your needs.

First-time buyers more active since stamp duty cut

 

The property market is usually quieter during December as many are winding down for Christmas; however, it appears that first time buyers took advantage of this quiet period.

New figures from the National Association of Estate Agents (NAEA) show a large number of prospective homeowners rushing to the market during the most recent Christmas period.

In December of 2017, the number of people registered with an estate agent to look for a home saw a drop by 20%, with sales taking a fall also. This is to be expected, as it is very common for many home movers to delay any transactions until the New Year.

It seemed to be quite a different story for those looking to buy their first home, as December 2017 saw a rise in first-time buyer sales by a substantial 32%, the highest peak since September 2016 and up from 27% in November.

The survey from the NAEA also revealed that the supply of UK properties hasn’t changed much at all, not meeting the new surge or first-time buyers coming to the market as the stock of each estate agency branch decreased by only one, to an average of 33 properties per branch.

It was also found that home hunters and transactions overall saw a dip in December. Registered prospective homeowners fell from an average of 333 to 268 per branch in the final month of the year and sales agreed per branch fell from seven to five from November to December.

December also saw a reduction in transaction times, with the number of sales completed in less than 4 weeks quadrupling and the number of sales taking longer than 17 weeks almost reduced by half.

Chief Executive of the NAEA, Mark Hayward, spoke about the findings of the survey. Hayward believes that these could be the first signs of the stamp duty cut having its effect “It looks like that’s what we’re starting to see. Hopefully, this enthusiasm won’t falter when the second and third-time buyers come back onto the market and competition hots up again”

Top tips for a ‘fixer-upper’

 

 

The ‘fixer-upper’ is a property that has the capability to stir a myriad of mixed feelings. On the one hand, there’s the feelings of elation and self-satisfaction, knowing that all your hard work, late nights and lack of social life has all been worth it. On the flip side, there’s all the…hard work, late nights and lack of social life…

Make no mistake, taking on a ‘fixer-upper’ is a labour of love and one where persistence is key. However, putting your own stamp on a property is a great feeling, so with this in mind, here are our top 5 tips to help you get the very best from your dream ‘fixer-upper’.

Location, location, location

Understanding the area where your ‘fixer-upper’ is located is a key consideration. Areas can quickly become both desirable and undesirable depending on fluctuating property prices. Getting the right information from an established property professional, one who truly knows the market, area, local amenities, and any future developments that could impact pricing, will all help to determine if the property you’re looking at is worth the investment.

Evaluate your ROI

Once you’ve identified the right area, it’s time to find the right property. Even if you don’t intend to sell it immediately, understanding which ‘fixer-upper’ will achieve you the greatest ROI is an important consideration. Look objectively at the area you’ve chosen and evaluate the relationship between the local amenities and the property. For example, a three-bedroom house located near a school has a much greater probability of selling than a two-bedroom house in the same vicinity due to parents with children looking to buy or rent in the area. It might sound obvious, but taking these points into consideration will always help to achieve a greater resale value.

Cost, cost and then cost again

Getting informed estimates of all the work you’ll need to have done will pay dividends. It’s almost certain that your costs will increase from your original budget, so make sure you’re financially prepared for the work that you're about to have done. If you’re the hands-on type, you’ll save yourself precious funds. If you don’t know your flathead from your pozi, chances are it could be a costly project, so be financially prepared. Also, consider over-budgeting, that way you’ll have a reserve should anything go wrong.

Get ready for the strain

If you are committed to putting the hours in to achieve your dream, make sure that you make time for some respite. ‘Fixer-uppers’ have the potential to take up a lot of your time and energy. They can also put undue pressure on your relationships, so be prepared to use up a great deal of your patience.

Enjoy the experience

Ultimately, the project will (conceivably) have an ending. When it does, there aren’t many more satisfying feelings than knowing you’ve achieved exactly what you set out to do. Stepping back, hands on hips, covered in paint, looking lovingly at your ‘fix(ed)-upper’ will be your reward for all your hard work. As we’ve already stated, it’s a daunting task, but one where the pros can truly outweigh the cons when done right.