November Newsletter - November is the last month to start your Help to Buy ISA

In this month's edition, we're kicking things off with a quick reminder; if you're looking to start your Help to Buy ISA, November is the last month you can do so!

Elsewhere, we reveal the average age of first-time buyers in 2019, we look into what homebuyers value most in a home and for landlords, we provide a guide to preparing your properties for winter.

November is the last month to start your Help to Buy ISA

 

This is the last month that Help-to-Buy ISAs can be opened before they end on November 30th, with no new applicants accepted onto the scheme past this period. If you have any aspirations of getting onto the property ladder, now is the time to open your account - you only need to deposit £1!

The Help-to-Buy ISA was launched at the end of 2015 and the accounts are available from both banks and building societies. The account has proved to be extremely popular as you can receive up to £3,000 from the government based on the amount of money you have put aside in the ISA.

Essentially, for every £200 saved in the account you can receive £50 with just a few strings attached;

• This is an account solely for those who have never bought a property before
• £200 is the maximum amount which can be saved in a single month
• The maximum government bonus is £3,000 (meaning that you need to have saved £12,000 to receive this)
• You may use the ISA to buy a home up to the value of £250,000 outside London, or £450,000 in London
• If you have any other ISAs open, you must transfer the value over
• You can keep saving in the Help-to-Buy Isa up until November 2029

If you miss the deadline at the end of this month, there is still the Lifetime ISA (LISA) which is similarly aimed at first-time buyers, but also for retirees. The LISA has a comparable 25% bonus from the government based on your own contributions into the account, and once you then 60 you can access the money that you have saved completely tax free.

Read more about the Lifetime ISA here.

What do homebuyers value most in a property?

 

According to recent research, homebuyers regard traditional features as one of the most important factors in a property when looking for their next home. With the prevalence of first-time buyers in the marketplace, traditionally important factors such as school catchment areas are descending in terms of their importance to buyers.

At the top of the list of considerations for buyers is green space – either private or shared - with almost a third of those surveyed ranking this as the most important factor when looking for a property. For those currently thinking of selling, the garden may take a backseat in terms of priorities over winter; however, in light of this research it may pay dividends to ensure that your outside space remains as pristine as your home over the coming months.

With a focus on green areas, it may come as no surprise that a private car parking space was ranked second with people now prepared to travel a little further to get that all-important green space.
Interestingly, in the capital city good transport links were considered the most important factor, with 31% rating this as priority number one.

Amenities such as shops and restaurants, as well as good transport links, followed in the list of priorities with around 13% of respondents noting the importance of good local facilities.

Michael Stone, Founder and CEO of Stone Real Estate, noted that: “Buyers are now searching for the right lifestyle fit for them and not just the right property and this level of innovation by developers in order to remain competitive and stand out from the crowd has resulted in homebuyers getting much, much more for their money.”

Landlords - prepare your properties for winter

 

As we head towards the Winter months, now is the optimum time for landlords to prepare for the potential issues that may arise from the harsher weather. Spending a little time and effort now may well save money further down the line in the event of an accident or repair cost. Here’s our list of essential landlord checks;

Boiler Service
The number one priority for every landlord should be checking that the boiler in your property (or properties) is in good condition, as repair costs can be extremely expensive. Book a boiler service to ensure that everything is working correctly and safely as boilers can break down with the surge in gas consumption that comes in the colder months.

Protect the Pipes
Adding lagging to your pipes (specially designed pipe insulation) is an inexpensive measure which will give you peace of mind knowing that your piping will not burst due to freezing and splitting. Focus on pipes in external areas and lofts which may be subject to the most extreme temperatures and you should avoid any problems as the cold sets in.

Smoke and CO Alarms
In line with regulations interlinked smoke alarms must be installed in each hall on each floor including every reception room and a heat detector in the kitchen – now is the perfect time to double check these are in good working order and that your tenants are safe in your property. If your rental property has a fireplace (or solid fuel appliance) or central heating system then an additional carbon monoxide alarm must be fitted within one meter of the appliance in the same room, as the chances of these items being used increase astronomically in winter.

Open Dialogue
One of the key pieces of advice that we can give to protect your property through the winter is to create healthy dialogue with your tenants. As they are living in the property day-to-day, they will be able to tell you about any smaller issues so that you know how to avoid any larger issues. Make sure your tenants know where the stopcock is in the property, where the fuse board is located and who to call in case of an emergency. This could be invaluable in saving you time and money.

Protect the Roof
Chipped, cracked or dislodged tiles on your roof could lead to significant water damage and in cold temperatures this can lead to structural issues with water freezing and expanding. Double-check that your roof is in tip-top condition, and whilst you’re at it take the time to clear out your gutters to avoid blockages when the inevitable rain falls.

What's the average age of a first-time buyer?

 

With the first-time buyer mortgage market reaching its highest level since 2007, there can be no doubt that over the last couple of years, first-time buyers have experienced something of a resurgence in the property market. However, with this demographic having different priorities than seen previously, what is the age of the average first-time buyer?

In August this year, there were over 35,000 new home buyer mortgages completed, up 0.7% from the same point last year according to data from UK Finance. Although many of these buyers may have been supported in some way by family members, with recent statistics showing that almost a third of first-time buyers received some financial support from the Bank of Mum and Dad, the outlook is bright for those looking to join the property ladder.

“The main affordability constraint continues to be the need to find a large deposit, with the average first time-buyer mortgage advance being only 77.9% of the purchase price, with the remaining 22.1%, nearly £50,000 on average, having to be paid upfront,” commented Mike Scott, chief property analyst at full-service estate agent Yopa.

“These figures suggest that buyer activity in the housing market is still holding up well, especially among first time buyers, despite the continuing political uncertainty. The total number of home sales in the year should be close to 1.2 million, only slightly down on the average for the past five years,” he added.

Interestingly, the average age of first-time buyers in this climate is actually increasing, with the average of 30 years old back in January now reaching 32 years of age. The average age of a buyer hovering at around 30 years old, is in line with the recent change in activity as first-time buyers look past one-bedroom apartments and studios, to three-bedroom houses for more longevity in their purchase. Analysis by Zoopla has shown that two thirds of first-time buyers sought a house rather than a flat, with 42% looking for a three-bedroom home.

Richard Donnell, Zoopla research director, noted that: “First-time buyers are thinking about staying in a property for 10-12 years rather than a shorter period. They’re aiming higher and want to save up and get a first home they can grow into.”