Will the Snap Elections Affect Property, A First Time Buyers Guide to Making an Offer, Plus More

Welcome to the May edition of the Town & Country newsletter.

This month, we investigate how the snap election could influence the property market, we share our guide to making an offer for first time buyers, we reveal why house hunters only need 30 minutes to choose a home, and we share some top tips for a fixer upper.

Snap Election: How Will Property be Affected?

 The housing market has weathered all kinds of storms over the last 18 months. Hikes to stamp duty, landlord tax relief reductions and Brexit have all threatened the market, but each one has been overcome.

The whole country was stunned last month, when Prime Minister Theresa May announced the country would go to the polls on Thursday 8th June. So how might the General Election affect the UK’s housing market.

Why now?
The Prime Minister’s decision to call a general election was a necessity, as she requires a strong parliamentary mandate for the upcoming Brexit Negotiations. Now that the Supreme Court has decided she needs parliamentary approval of the Brexit deal, the opposition parties now have the right to oppose the deal, as do the House of Lords.

The election contributes to the uncertainty generated by Brexit, however, if the conservative party are successful in increasing their majority, then it is predicted that we will see a greater economic and policy stability going forward.

Jeremy Leaf, former residential chairman of the Royal Institution of Chartered Surveyors (RICS) said: “...if the result is decisive either way, that will give the Government a greater mandate for its existing policies and is likely to result in a surge in activity in the housing market at least for the honeymoon period afterwards.”

However, Mr Leaf added "If you gamble and leave it until after the election, it could be a very different market; at least we know what the current market is like. You may make more money if you sell afterwards if there is a positive outcome, but you may need to pay more, particularly if you are trading up."

What affect has it had?
According to a recent survey conducted by eMoov, 57% of sellers said the election won’t stop their property plans. Only 18% of those asked said they would wait until after the election.

Likewise, buyers are still equally committed with 59% still going ahead with their purchase, and 18% saying they’re on hold.

Whilst there may be some short term uncertainty, property commentators believe that the election is unlikely to have any sort of significant negative impact - and could even mean a boost for the property market in the long term.

A Guide to Making an Offer for First Time Buyers

 If you’re a first time buyer and you’ve begun the hunt for your first home, you may think that once you’ve found the right home you simply offer what they ask for and it’s job done.

However, when it comes to making an offer on a home, there’s a bit more work that should go into it than just offering the price advertised.

The property market is possibly more competitive than it’s ever been. You want to be confident when making an offer that you’re not going to be stung by an inflated asking price or take yourself out of the running by offering too low. To help you prepare, we’ve put together the following information to help you through this stage of the home buying process.

The first step and arguably most important step you need to take is speaking to an expert. If you’re a first time buyer then you probably don’t have a wealth of knowledge on how the market works and what you can and can’t afford. Get in touch with a mortgage advisor, get informed on how it all works and more importantly, find out what your price range is so when you do make a formal offer you can do so with confidence.

Once you know how much you’ll be able to spend, it’s time to get a better understanding of your local market. The more research the better. Take a look at what’s up for sale currently and find out what your budget will fetch you in each area.

Build a list of key features that your home will need such as number of bedrooms or a driveway. The chances of you moving into your dream property with your first move are somewhat slim, however, it’s important that you know what you’re looking for and how much it will cost you in each area.

It would be wise at this point to get in touch with a local estate agent. You can do as much research as possible, but a good local agent will always be a benefit as they will know the market like the back of their hand. This means that they can fill you in on what to expect from vendors and hopefully help you avoid any pitfalls of the market.

Now that you’ve done your research on what you want, what you can afford and what the market has to offer, it’s time to book some viewings and get out there. Things can move very quickly in the property market, so your previous work and research leading up to this point will come in handy as there’ll be no time wasted travelling to unsuitable areas or over-priced properties.

While viewing properties be sure to check out the building's structure and not just its décor. Check for any damage such as cracks in walls or damp. Make sure you understand exactly what you’re getting into and have a good idea of the current state of the home as it can help form your offer.

If you’ve managed to find the right home, then it would be best to act quickly as there’s a good chance you’re not the only one eyeing up that house. If you’re ready to make an offer, consider a few things before doing so. How much do other similar properties go for in the area? Does the property need some repairs? Have house prices dropped slightly since the home was first put on the market? We’d all love to knock a few thousand off the asking price, but the seller isn’t going to do it just to be nice, so if your offer is lower than the asking price, you’ll need to demonstrate why.

Now before you finally put your offer on the table, try and organise all the other pieces of the puzzle beforehand so you are ready to go as soon as it’s accepted. If you’re a first time buyer then one of your major benefits is that you don’t have to organise selling your own home, but if you can organise such things as surveys and solicitors then it’ll make the process much smoother.

Home Hunters Only Needs 30 Minutes to Choose a Property

 The process of buying a new home can be a lengthy one. The countless hours you spend educating yourself on industry jargon, researching areas, agonising over images of properties, alongside actually moving in, probably number in double digits.

Which is why it’s so surprising that the average Brit will decide whether they want to buy a home or not within 30 minutes of viewing it in person.

However, when it comes to buying a new car or sofa, it can take up to three times longer!

The findings of a recent survey found that the average home hunter will make up their mind within 30 minutes of a viewing, with 24% of those asked claiming they knew whether or not they liked a property within 10 minutes or less.

With the current supply and demand issues the UK property market currently faces, many buyers will likely feel the pressure of competition when making their decision.

When split into region, house hunters in the East of England were shown to be the most careful in their decision making, with the average minute of viewing totally 32 minutes.

Buyers in the East Midlands were shown to have the biggest reckless streak with the average time spent viewing a property before making a decision equalling 25minutes. They are closely followed by the South East (26) and Scotland (26).

 

The modern prospective buyer has a wealth of tools at their hand to prepare themselves for a viewing. With the help of a few google searches, they can compare values of properties in the area, check the quality of schools and amenities and even check crime reports. They arrive at the viewing fully prepared to make a decision, with only a visual confirmation of the property needed to push them over the edge.

Again, the house hunters in the east midlands spent the least amount of time conducting research about their new home, spending 61 hours researching online. Whilst Wales proved to be the most prepared for their viewing spending an average of 83 hours researching property.

 

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 great feeling, so with this in mind, here’s 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 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.