Your property market update for November

Following the annoucement from the Prime Minister on Saturday that England will enter another lockdown on 5th November, we would just like to reassure you that the housing market will remain open.

This month's newsletter we share why you should consider buying or selling in the winter months leading up to Christmas. We also look into how tenant demand for rural properties is predicted to continue during the second lockdown. If your a landlord looking to protect your investment we give you some top tips, before closing our newsletter exploring how we are moving from a generation focused on renting to a generation that now wants to buy.

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

Why you should consider buying or selling before Christmas

There are a wide range of influences that can prompt people to buy or sell in the run up to Christmas.

With market momentum showing no signs of slowing down, we've pulled together the key reasons to explain what's behind property market activity at this time of the year.

Avoid unpredictability

In 2020, it's fair to say we've all had a rollercoaster of a year so far, with the pandemic and Brexit negotiations making it hard to predict what could happen in the months to come.

However, what we do know right now is that the property market will remain fully open and that agents are being actively encouraged to continue progressing sales and lets, which should give homeowners and movers confidence regarding current market conditions.

At the same time, there's also the stamp duty holiday to consider.

Ending in March 2021, the scheme will mean you could save thousands off your next property purchase, incentivising many of us to make full use of the savings on offer.

Stand out

With some homeowners hesitant to buy or move in the winter months, you're guaranteed better chances at finding serious buyers and seeing less competition for their attention.

Whilst November and December are months that traditionally see more motivation from home movers, this will be especially prevalent this year, with everyone invested in completing before the stamp duty deadline.

Meanwhile, as a buyer, your offer is likely to stand out, meaning you can reach 'sale agreed' sooner than in other seasons.

Interest rates

At the moment, interest rates are at a historic low, making it one of the best times to find a great deal on mortgages.

Don’t get caught out in the spring rush

In the past, we've experienced a spring rush, as those who had delayed their move for warmer months flood back to the market.

Increased competition can often mean that you initially receive fewer viewings and offers, with buyers' attention divided by the new listings coming onto the market.

By avoiding the spring rush and starting the process now, you could secure a buyer in advance and be in your new home in 2021.

To get started with your property sale or search, contact our experienced agents today.

Tenant demand for rural properties is predicted to continue

Living through lockdown left many people around the UK rethinking their living situations, and now – as we enter the next phase with the country's second national lockdown – we're finding that homeowners and tenants are more motivated than ever to find somewhere that's more suited to their needs and lifestyles.

Rather than providing us with a sanctuary from workday stresses, our homes have been transformed into temporary office spaces and school rooms, leaving little room for us to unwind and detach from the day's events.

Recent data suggests that one in five landlords believe that demand for more space will drive tenants from urban areas to the countryside over the next few weeks and months; particularly if remote working becomes a permanent norm for businesses.*

This shift in attitudes is already apparent when you look at migration patterns across the UK.

According to the latest rental market report from Zoopla, there is a supply-demand imbalance supporting positive rental growth across all regions and major cities outside of London.

Have you been thinking about letting your property?

With the UK workforce experiencing its second national lockdown, it's thought that businesses will become even more reliant on remote working practices, having a knock-on effect for the property market and reducing our need to live close to the office.

If you've been considering expanding your portfolio as a landlord, now is the perfect time, with increased demand and value for rural homes.

To find out more, contact our team of property professionals today.

*The mortgage lender

Top tips for landlords on protecting your investment

Right now, interest from tenants is rapidly growing across the country, with many deciding to delay buying or coming to the realisation that they need to find a rental with more space.

At the same time, we're also seeing a lot of uncertainty around the UK's COVID-19 response, with the implementation of the second country-wide lockdown just weeks after the three-tier system was introduced.

This has led to an understandably confusing period for landlords and tenants alike.

However, as your leading lettings agent, we wanted to provide you with some relevant tips on protecting your property investments for the foreseeable future.

Communicate with your existing tenants

Faced with some key changes on eviction notice periods and the likelihood that evictions altogether will be off-limits for months, it's important to maintain a healthy relationship with your tenants.

Since September, void periods have risen from 19 days to 23 days, with all regions reporting an increase over this period.*

Now more than ever, it's crucial to avoid conflicts, where possible, with rent arrear and possession cases likely to see further delays.

During this time, we want to extend our support to landlords in need of guidance or looking for someone to act as a mediator when establishing rent repayment schemes with tenants, visit our website to learn more.

Have the right cover

If your tenants are unable to cover the rent, obtaining a rent insurance policy will provide you with peace of mind and protect your rental income.

Due to the increased risk everyone is facing now, you will need to demonstrate your referencing is vigorous when applying, and you may even experience difficulty finding the right cover.

Point your tenants towards available financial support

If you have renters that are struggling to pay their bills, make them aware of the financial help that is available to them.

Guide them towards organisations and experts who can help them budget, access aid and benefits.

Adapt your offering for the new normal

Having an outdoor area has now shot to the top of tenants' priority lists. Any property with a garden, balcony, roof terrace or proximity to a park should manage to do well after this year.

In the course of the last few months, there's also been a surge in pet ownership, especially for households where tenants are living alone.

If you're willing to be flexible, you should consider promoting this fact, as supply for pet-friendly accommodation is relatively low and you'll stand out in the market.

For more guidance or information on our lettings packages, please go to our website.

*Source: Goodlord

From ‘generation rent’ to ‘generation buy’

In a recent conservative conference, Boris Johnson promised to create two million more homeowners by changing ‘generation rent’ into ‘generation buy’, in the hope that the UK can return to normal post-COVID.

Mr Johnson continued by suggesting that the current levels of home ownership among the under 40s was ‘disgraceful’.

These levels have been plummeting dramatically over recent years, which has made people “pay through the nose to rent a home which they can’t truly love or make their own”.

To do this, changes to the regulations introduced in 2008 are required.

Previous strict minimum capital requirements, which were imposed on UK banks, are being blamed for initially making owning a house unattainable for various individuals.

These individuals may have been able to afford the monthly mortgage fees associated with homeownership, but the initial upfront deposit being between 15 and 20 per cent, it’s clear to see why renting was the only option for most.

Due to this, private rent increased from 2.8 million in 2007 and to 4.5 million in 2017.

So, what’s the solution?

The Prime Minister’s ambitious plans to ‘fix our broken housing market’ begins by slashing the current deposit rates to only 5% for first-time buyers.

As a result, this will be the biggest expansion of the sales market since the 1980s.

This will be welcome news for potential first-time buyers nationwide, and a great boost for the property market post-lockdown.

To view our properties, visit our website today.