GeorgeHartshorn, Author at Property Market News

MASSIVE HOUSE PRICE INCREASES – TIME TO SELL?

The government’s latest house price index report (published on 15th September 2021) showed some huge price increases year on year. Local area’s that saw some of the best gains included Coventry prices increasing 8.7% (versus the national average in England @ 8%). Warwick’s price rises were more modest at 2% while Stratford Upon Avon saw a whopping 18.7% increase for the same time versus the previous year. Stratford’s average price now stands at £355,000. Warwickshire as a whole faired very well with average increases of 10.9%.

With prices so high right now and no way of predicting what the market will do next, selling could be a smart move for those looking to cash in, downsize or release some equity. There are of course plenty of other scenarios where sellers will benefit including deceased estates and separations.

If you’re a first time buyer of course, this won’t be the news you were looking to hear. Having said that, borrowing rates are at an all time low so whilst you may have to stretch your deposit a little further, repayments will be very modest once you’ve made that first purchase.

Long term, purchasing bricks and mortar still looks a very safe bet. Compare average house price increases to current savings rates or other investments, including bonds and ISAs, or perhaps even versus the volatility of Crypto investments, the saying “as safe as houses” still rings as true today as it did 50 years ago.

For professional advice on all aspects of buying or selling speak to one of our experts. Contact Elizabeth Davenport on 01789 549 549.

Housing Boom is not driven by the Stamp Duty Holiday

A think tank has looked at compelling evidence and found that the current boom isn’t in fact driven by the Stamp Duty Holiday.
If you’re a home owner, this is exciting news and suggests that any predicted lull in activity and prices is not going to materialise.

The Resolution Foundation found that those areas that would have benefitted most from the Stamp Duty savings didn’t enjoy the best price increases, whilst other areas that received negligible benefit from the holiday had much higher price increases.

So if the current boom isn’t driven by tax savings, what is causing all of the gains? It would appear that the main driving force is very low interest rates with many lenders offering deals below 1% and the increasing availability of finance and higher loan to value deals.

With no current indication that lending rates are likely to go back up again any time soon, this suggests that the market will remain buoyant and strong going into 2022.

If you’re buying this is excellent news as you’ll save thousands in interest payments whilst those who are selling will benefit from higher prices, especially if you’re downsizing.

Great news all round in fact. For further help and advice on selling or buying your next home call our office and speak to an expert. We’re here to help you.

Landlords – Are you worries by void periods?

Lettings Are At An All-Time High!
No Landlord should be facing void periods at a time when the rental market is booming. Demand has stayed strong and showing no signs of slowing down.

As lockdown restrictions continue to ease demand for quality rental homes has increased and this is likely to continue in towns and cities such as Kenilworth, Warwick, Leamington Spa and Coventry as offices and amenities start to open up further.

With rental demand at such high levels and supply still low this is causing average rents to increase and the average time it takes a property to let has fallen.

Snapshot figures for our Lettings department from Summer 2021:
10 available properties for rent ranging from 1/2 bed apartments to 2/3/4 bedroom family homes
Average enquiries per available property 26
Average viewings 15
Average days void 3

If you have or are about to have a property that will be available for Let don’t delay. Contact us today and avoid those void periods. We specialise in quality rental properties across Warwickshire. Call 01926 298 298, 02476 010105 or 01789 549 549.

A Good Time to Buy Property?

With stamp duty relief set to end shortly and already having been watered down since June 30th, the frenzy of activity witnessed over the last few months could slow potentially. If you are looking to move home are you wondering what this will mean for prices?

The stamp duty holiday brought many players to the market who saw the opportunity to save thousands in tax. This brought forward decisions for those who perhaps would have otherwise waited until next year, or even beyond. So will we now see a lull in activity and downward pressure on prices?

In actual fact, compared to July in years gone by, the housing market is still very busy. New instruction levels are high and offers are still being received.

It seems there were many potential home movers who wanted to wait until they had been double jabbed before committing, not to mention vast numbers of workers who are now having to move job due to the pandemic. Add this to the high numbers of marital separations compared to years gone by and you have the perfect storm for a very busy property market for Autumn and Winter 2021, going into next year.

Interest rates remain historically low and mortgage availability is good. Those who are selling up or downsizing will benefit hugely from the current high prices, so (again) that will mean yet more activity. New homes are being built everywhere you look and brand new student blocks are sprouting up left, right and centre in the big university cities. And first time buyers want to get on the ladder sooner rather than later before they miss the boat.

So in fact, it’s still foot hard to the floor as far as the property market goes. If you’re waiting ‘until things cool off’ then you could have a very long wait ahead

For professional and impartial advice on property buying, speak to one of our property experts, we’d be delighted to help.

A Sign Of The Times

Selling and Buying property is an ever changing game. The last few years have seen monumental changes to the way that people search for suitable properties to purchase.

With an increasing proportion of the initial searching being done online, buyers can search for their next home or investment from the comfort of their armchair or whilst sitting on a train or perhaps even while at work (heaven forbid!). Just a few years ago the property information would have come in the form of a long winded and tediously long description of the house or apartment in question, with paragraph after paragraph about fixtures and fittings, kitchen worktops and glazing descriptions.

Nowadays of course, these boring write-ups are all but forgotten and have been replaced with high quality photographs, detailed floor-plans and HD Video Tours, especially from the higher quality estate agents.

The one thing that remains the same is when the buyer actually goes to view the property in person. Modern gadgetry at this point is irrelevant and all that matters then is for the estate agent to show skill and understanding of the buyers’ requirements and help them in making the correct decision. And if the property they are viewing is not suitable, a skilled agent will be able to suggest a suitable alternative. That’s where we come in.

Our viewing representatives have years of experience and will help to get your property sold for the maximum possible value. They also work at weekends and in the evenings on selected days, meaning greater flexibility and more sales agreed for you, our customers.

Now that’s progress….

Stamp Duty Holiday Extended!

Good news for home buyers and sellers. The Chancellor Rishi Sunak has announced an extension to the current stamp duty holiday. This is great news if you are considering buying or selling this year and firmly gives the green light to a busy spring for the housing market.

The current £500,000 nil-rate band in England and Northern Ireland will apply until 30 June. Between 1 July and 30 September, it will be reduced to £250,000, and then from 1 October, the previous threshold of £125,000 for home movers will be reinstated. In practice, this means that people buying before 1 June will be able to save up to £15,000, while those buying between 1 July and 30 September will be able to save up to £2,500 in tax.

Whilst October seems a long way off, due to the nature of the property market and the lengthy process involved, we recommend taking the plunge sooner rather than later if you are looking to save money. From start to finish, the house buying process typically takes around 5 months so if you put your house on sale tomorrow or start searching for a home then you could hope to be moved by September. The process can of course be quicker but this is a typical timescale.

If you are weighing up your options and need further advice, then why not request a visit from our valuer. We can provide advice on all aspects of buying and selling and there is no obligation. Call us today to book a free appointment on 01926 298 298.

What about the Stamp Duty Cliff Edge?

With the stamp duty holiday due to end in a few short weeks, those wanting to take advantage of this tax break are rapidly running out of time. In recent days and weeks there has been some negative commentary from various quarters about “cliff edges” and the “race to beat the deadline”. Will there be a ‘stamp duty cliff edge’ as predicted?

Whilst you may well agree that paying large amounts of tax isn’t the most exciting proposition, the reality is that stamp duty has been a part of English Law since 1694 when it was introduced during the reign of William and Mary in order to raise funds for the war against France. It was introduced on conveyances of sale, including the sale of land in 1808. So for most homebuyers Stamp Duty has been a reality since we purchased our first home and remains so today.

With the prospect of having to pay Stamp Duty again soon, a few buyers and sellers may decide not to move home after all and stay put as they were only really moving in the first place to save some money. Lucky them.

In the real world, most of us move home for a variety of practical reasons: we need a bigger house, we need a smaller house, we want a garden, we need more bedrooms for our growing family, we are getting divorced, a relative has died, the house has been repossessed, we want to live closer to Grandma, the neighbours are a nuisance, we want a house with a view, we prefer a south facing garden, we need to be by a good school, our employer has moved our job location, etc. The list goes on.

The majority of us don’t have the luxury of deciding to move because “there’s a stamp duty holiday”. So in the real world, the property market will march on and it will be business as usual. 2021 will no doubt see a resurgent economy and a resurgent housing market.

For further advice on your property sale or rental speak to one of our friendly team of experts.

2021. Here we go again…

Happy New Year! And what a year 2021 is set to be. After the miserable annus horribilis of 2020 that many folks will be delighted to forget, the new year brings a fresh feel and invigorated spirit with feelings of joy and optimism for better things to come.

With hospitality able to start up again in the near future and people happily returning to work after months of misery, this will give a welcome boost to the economy and start to get everything back on track. It will also mobilise a large chunk of the workforce, when times are hard people follow the work trail and this will mean additional demand for housing in many areas either through purchase or rental.

Whilst 2020 was one to forget generally, the property market did receive a big boost because of the stamp duty holiday and although this (at time of writing) is still due to end after March, it has meant that property prices remained firm and confidence was retained. It’s still not inconceivable that the Chancellor will extend the SD holiday, he will want a healthy property market to bolster the economy generally. Extension or not the current trajectory of the market has already been set, add to that the stubborn shortage of homes nationally, increased demand due to workforce mobility, and ever-present record low borrowing rates, the outlook looks solid for the foreseeable future.

And with ‘Brexit Done’, whatever that means, business will have more certainty giving more job security and certainty for mortgage payers and renters alike. So in summary, the future looks bright!

If you need to move home this year or release equity in your investment portfolio, call our office for further advice about going on the market. Likewise if you have a rental property that is empty or coming up for renewal, our experts are on hand to help out. Call us today and get the ball rolling for 2021!

CONTINUED ACTIVITY, COUNTDOWN TO MARCH

With no let up in activity for the property market in the Warwickshire Area and the half term holiday upon us, things look remarkably different in 2020 compared to years gone by. Those wanting to take advantage of the Stamp Duty holiday have 5 months left until the deadline. This may seem a long way off but with Christmas and new Year to come, the clock is definitely ticking down already.

Traditionally the conveyancing process takes around 12 weeks on average. With significantly increased volumes at present, this time frame is now longer so waiting until after Christmas to go on sale or purchase will leave many would-be movers and buyers disappointed.

If you’re not bothered about Stamp Duty then there’s no problem. If you want to take advantage of potential savings of up to £15,000 then pick up the phone today and call us for more expert advice about moving home.

If you have a property in Leamington, Kenilworth, Warwick or surrounding villages then we can help you. We have hundreds of buyers registered who could well be interested in buying your home.

We’re also offering complimentary restaurant vouchers to home owners who go on the market with Elizabeth Davenport between now and the end of December. For further information call us on 01926 298 298.

Does The Asking Price Matter So Much?

If your property has been on sale without success for more than 3 months then this probably means something is wrong with the marketing. This could be any of a number of things, perhaps the photos aren’t up to scratch or maybe the property isn’t being advertised through the right channels. Just as likely though is the possibility that your home is on sale at too high an asking price.

We hear many homeowners say “If the price is too high then people will just make lower offers.” Unfortunately this often isn’t the case and in reality overpriced homes often receive few viewings and subsequently don’t receive any offers at all. The reason for this is simple. iStock_000002696243XSmall

An RICS report has shown that 70% of buyers pay 20% more than they originally set out to spend. This means that if your property is worth say £400,000 the most likely buyers will have been searching for properties advertised between £320,000 – £400,000. So if you put your home on sale at £450,000 the most likely buyers won’t be coming to view it. In fact all of the WRONG buyers will come and view and when they do it won’t live up to their expectations. So you won’t receive any offers.

So asking price is critical in attracting viewings but even more crucially it’s very important in attracting the RIGHT viewers. In Warwickshire over the last couple of years there has generally been a shortage of property for sale so if your home goes on sale at the correct price and is promoted well by your Estate Agent with good marketing details then you should be able to find a buyer in a matter of weeks.

Call Elizabeth Davenport today for more expert advice on selling your property or for a free valuation.