Your property market update for October

With the property market booming, we give you advice on how to make your property stand out in a busy market.

 

This month's newsletter also features how important it is to get your property priced correctly and how friends and family loans are providing support to first-time buyers. To finish, we give you an update on the latest guidance on lettings evictions this autumn..

 

We hope you enjoy this month's edition. If you have any questions please do not hesitate to contact us.

How to make your property stand out in a busy market

 

More new listings are coming onto the market now than at the start of the year. In the last month, there’s been an increase of 139% new properties when compared to pre-lockdown levels.*

 

Over 21,777 properties were put up for sale in September – with data available up to the 25th.

 

Whereas figures were relatively more modest in January and February, at 15,661 and 17,880 respectively.

 

With increasing competition on the market, how can you make your home stand out to buyers this season?

 

 

Emphasise your outdoor and indoor space

Properties with gardens are more desirable than ever.

 

If your home has this to offer, showcase it. Ensure that the grass is freshly mown, and any fallen leaves cleared away before viewings.

 

To help your property withstand winter weather, it’s also important to fix existing items in need of repair and to check your fences are sturdy. If you have time, a fresh coat of paint will also work wonders.

 

Another shift in buyers’ priorities is the need for a dedicated office space.

 

If you have a spare room that would be ideal for working, make sure that it is set up neatly to demonstrate its functionality.

 

 

 

Family areas

 

Communal spaces are a great selling point for a property.

 

Staging a large dining table in your kitchen area will show to a potential buyer that the property can accommodate gatherings with friends and family. Similarly, a living room with lots of seating will create a great social environment.

 

Having a messy kid’s bedroom can have a negative impact on your property’s sale value, apparently knocking off up to £8,000 according to ING Direct.

 

So, when it comes to preparing for property photos or viewings, it’s critical you cast your eye over every room first.

 

 

 

Keep it neutral

 

Whilst your personal style might give your property a unique character, not everyone will agree with your choices.

 

Experts claim that perceived bad taste can cause you to lose between five and ten per cent off the value of your home.

 

Before selling, consider stripping away some of your personal belongings and stick to neutral, non-offensive décor; giving your viewers a blank canvass to visualise seeing themselves living there.

 

To see what properties we’ve currently brought to market near you, browse our latest listings.

*Source: BriefYourMarket.com

 

 

Properties priced correctly sell in half the time

 

Rightmove have done extensive research into the effect that asking prices have on a property’s likeliness to sell.

 

Approximately 300,000 properties were brought onto the market this summer.

 

By September, 63% of properties that remained at the same price and hadn’t been reduced had reached Sold Subject to Contract (SSTC).

 

Whereas out of the 300,000 properties, only 32% of those that had come down in value had reached SSTC within that same timeframe.

 

This study confirms what we’ve long since known, that the asking price set for your home is a key determining factor in how it performs on the market.

 

When priced right the first time, Rightmove’s findings were that a house sold 26 days faster, on average.

 

 

As your leading local agents, we can ensure that your home is competitively priced.

 

Resident data expert at Rightmove – Tim Bannister – had the following to add: “This analysis shows just how vital it is that sellers listen to their agent when they recommend the asking price that the property should be listed at.

 

“If sellers are serious about selling, then starting with too high an asking price can cause unnecessary delays, and also make it a lot less likely they will actually find a buyer in the end.

 

“The temporary stamp duty holiday means more sellers are in a hurry to get a sale through conveyancing, and with this also taking longer at the minute a realistic asking price could soon end up being the difference between completing in time or losing out on the savings.”

 

 

Book your valuation today

 

We appreciate how demotivating it can be to experience delays when you’re excited to progress your property move.

 

That’s why our valuations take into consideration a number of different variables, such as the condition of your home and properties in your area, making us the experts who can confidently evaluate your home’s worth the first time.

 

 

Friends and family loans are providing support to first-time buyers

 

Half of first-time buyers have made the difficult decision to put their plans on hold due to the pandemic; either due to their financial situations (41%) or because lockdown has caused them to reconsider what they’re looking to buy and where (42%).*

 

With many prospective homeowners feeling pushed out of the market right now, we want to offer our guidance, so that when you’re in a position to proceed as planned, you’re informed and able to make the right choices.

 

 

23% of housing transactions are backed by Bank of Mum and Dad (BoMaD)

 

Loans from friends and family members have been an extremely popular option so far this year, with an estimated 175,000 transactions involving this support type going through in 2020.**

 

Whilst lenders are currently trying to put a cap on family lending for deposits, it’s thought that the so-called Bank of Mum and Dad will still be behind £50 billion worth of property transactions.

 

Furthermore, despite the pandemic and the financial strain its put on households, 15% of BoMaD lenders plan to give their loved ones more contribution to their deposit and property purchase than initially intended.

 

 

What do you need to know as a first-time buyer?

 

For everything you need to know before taking that first step, please visit: https://www.which.co.uk/money/mortgages-and-property/first-time-buyers.

 

*Source: Aldermore
**Source: Legal & General

 

 

The latest guidance on lettings evictions this autumn

 

Although the ban on evictions has now been lifted, there are certain measures and restrictions in place to protect tenants as we head into winter.

 

Find out what’s changed for landlords, tenants and the UK rental sector.

 

From a recent survey, 12.5% of tenants reported that they had either missed rental payments or made alternative arrangements, with an additional 12% of respondents concerned about their ability to keep up with rent in the future.*

 

 

Notice periods

 

To recap on what’s been put in place so far, six-month notice periods will give tenants who are served notice the added security of having somewhere to live whilst they seek alternative accommodation or financial support.

 

These extended notice periods will be in place until March next year, except in extenuating circumstances where a landlord may seek possession sooner, including for anti-social behaviour or rent arrears that pre-date lockdown.

 

Now that repossession cases can be brought to court again, landlords and tenants should take it under advisement to establish a resolution privately – if at all possible – as cases are prioritised by level of urgency to manage the court’s backlog and this may delay the ability to come to an agreement.

 

For landlords, it’s also important to note that when making your case, you will need to disclose your tenants’ financial situation and whether they’ve been affected by the pandemic, as this will be a key consideration.

 

 

The government’s Christmas evictions truce

 

Dates have been announced by the government to prevent tenancy evictions over the holidays, meaning that bailiffs cannot be instructed to help landlords regain possession between December 11th and January 11th.

 

There will also be further guidance issued to bailiffs, preventing action to be taken where local lockdowns are currently in force.

 

 

Concerns from the lettings sector

 

Policy and Campaigns Manager at ARLA Propertymark – Timothy Douglas – has commented that over the past few weeks, the government have not been clear when providing updates on eviction processes but have instead drip-fed information to the public.

 

As a result, this has made it very difficult to respond and plan ahead, with Douglas further stating that the UK government are introducing measures that are difficult to implement; especially when faced with rapidly changing local lockdowns.

If you’re a tenant or landlord looking for clarity on how this could affect you, please contact us directly.

*Source: Goodlord survey, Letting Agent Today