The latest news from HoldenCopley

The latest news from HoldenCopley




Investing in property? Here are our top tips!

 
With high demand for property driving up house prices and rents across the country, now is a great time for new or established landlords to ride the wave by investing. But where should you start, and how can you improve your chances of a respectable return? Read on to find out.
 
Choose your location
Ideally, it’s sensible to invest in an area within a manageable radius of your current location. This will allow you to visit the property easily, complete any necessary improvements, or keep an eye on contractors. If you live nearby, you’re also more likely to know which streets and neighbourhoods are the most desirable, helping you identify golden opportunities as soon as they arise.
 
Once you’ve settled on a general area, spend some time researching the current market conditions, including the average local rent and sale price for the type of property you’re interested in buying.
 
Hint: A trusted local agent like ourselves can advise you on this.
 
Identify potential ways to add value
While searching for the perfect rental, consider ways you could improve a property to make it more appealing to your ideal tenant. Could you add an extra bedroom or a home office by converting the loft? Is the property worth renovating to bring it in line with more high-end lets? This is where your market research will come into its own.
 
Other ways to increase profit may include selling off additional land a tenant won’t need or splitting up a building into apartments. Just make sure you obtain advice from a relevant professional before you invest.
 
Decide on funding
Yes, opportunities are endless for cash buyers, but if you have the minimum deposit (usually 25%), a buy-to-let mortgage can help you achieve your dreams. The maximum you can borrow is linked to the rental income you expect to receive, which should be 25–30% higher than your mortgage payment.
 
Specialist lenders may also provide a bridging loan to cover the cost of renovations while you get the property up-to-scratch.
 
Beyond these top tips, our property experts are always on hand to help. Contact us to discuss potential investment opportunities or book a rental valuation.
 



What are tenants on the hunt for in a property?

 
A recent report by the Social Market Foundation (SMF) has revealed tenants’ top priorities when choosing a home.* The results may help landlords make the most out of their properties while providing a valuable service for the wider community.  

 

While the private rental sector faces huge demand, landlords who listen to their renters’ needs are more likely to attract long-term, conscientious tenants desiring a secure home.**  

 

So, what steps should landlords take next?

 

Pitch the price just right 

 

After financial pressure brought about by COVID-19 and the cost of living crisis, it’s not surprising that 55% of tenants consider price above all else. However, many renters (35%) also prioritise bigger properties, so where is the sweet spot?  

 

Understanding regional dynamics can allow landlords to balance the property’s worth with affordability considerations. For example, some tourist-heavy counties have a disparity between house prices and local wages as homes are snapped up for the holiday market. Rents based purely on the property’s sale value may exclude local families in these areas. 

 

A lettings valuation will give you a clear baseline to adjust accordingly, depending on your circumstances and long-term financial goals – and the type of tenant you’d prefer. 

 

Consider allowing pets 

 

According to the SMF survey, 18% of tenants seek rentals that welcome animal companions. Compare this to the mere 7% of landlords who actively market their homes as pet-friendly.  

 

If you’re preparing a new rental property, perhaps think of ways to make it more suitable for pets, such as choosing wooden or tiled floors over carpets, or securing the garden. 

 

Provide value for money 

 

Everyone loves a good deal – including renters. Although many tenants have a tight budget, plenty will pay more for high-quality interiors and decent gardens. In fact, the latter was cited as a top priority, especially for those looking to create a long-term home.  

 

Choose a property near amenities 

 

If you’re planning to invest in a buy-to-let property, it’s worth knowing that 38% of renters wish to live near their workplace. Public transport facilities and access to shops also factor in for 37% and 36% of tenants, respectively. Therefore, it’s worth searching for opportunities that tick these boxes.  

 

Want to learn more? Contact us to discuss how to boost your property’s rental potential and book a lettings valuation. 

 

 

*Social Market Foundation 

**Paragon Bank 



More landlords are needed to equal out rising tenant demand

 
You may have heard how well the sales market has performed over the past couple of years, pushing prices up 12.4% nationally*. The rental market has followed hot on the heels of this trend, with around three tenants currently vying for each property.**
 
Compared to the previous year, the number of available rental homes has dropped by 9%, which has nudged up the average price by £150 per calendar month.*** This means tenants now pay around £1,088 outside of London or £2,193 PCM in the capital.
 
But what’s driving this steep increase in demand? There are several factors involved. Rising house prices may force tenants to rent for longer than planned, meaning fewer homes are circulating on the market. Almost a fifth of landlords report tenants are staying put for longer than in previous years.****
 
In addition, concern over upcoming rental reforms has prompted some landlords to take their properties off the market. Dwindling stock further encourages tenants to remain in their current rental while they search for somewhere else to live.
 
The fallout from the pandemic has also muddied the waters, with many people choosing to move back to urban centres or escape to the country to work remotely. The latter is partly responsible for the intense pressures faced by tenants in popular rural hotspots.
 
Without more landlords joining the market to ease supply, many people may be forced to stay in unsuitable accommodation, leave their local areas, or even risk homelessness.
 
The good news is that if you have a property to spare, now is a great time to get involved and reap the long-term rewards a solid rental income can provide. This is especially true if you’re letting in areas recently boosted by the Elizabeth Line or where supply is strained.
 
Curious about how much your rental property is worth in the current market? Our friendly team is ready and waiting to book your lettings valuation.
 
 
 
*UK House Price Index (ONS: April 2022).
 
**According to a recent report by Property Reporter
 
**Data from TwentyCI and Rightmove (early 2021 to early 2022).
 
****Property Reporter (June 2022).



Spruce up your surroundings this August

 
Nature is fantastic for our mental and physical health, and being around plants and animals has many proven benefits, such as reducing stress and increasing oxygen supply.
 
As society becomes more conscious about living in harmony with the natural world, homeowners, architects, and interior designers everywhere are exploring the concept of biophilic design.
 
Never heard of it? Biophilic literally means ‘the love of living things’, and it’s all about lessening the divide between artificial environments and the natural world by bringing in the abundant greenery and materials available beyond your front door.
 
The pandemic created a change in lifestyle and priorities that prompted many of us to appreciate fresh air and green space to a greater degree. How you replicate that freedom inside your home depends on your budget and the amount of time you wish to invest.
 
On a macro level, this might mean creating a garden or sunroom either by repurposing a space or extending into the garden. Alternatively, large picture windows and glazed doors are great for framing a view and capturing sunlight.
 
Not much to see outside? If you have a garden or terrace, you could vary your planting scheme to encourage birds and wildlife or set up nesting boxes and feeding stations. Window boxes and windowsill herbs will also help to blur the line between inside and out.
 
Small details within your home can make a big difference too. Use natural materials, fibres, colours, and prints/patterns whenever possible, whether you’re refitting your kitchen or sprucing up your décor. Of course, if you can introduce plants or even a living wall somewhere in your home (or a courtyard), even better.
 
Improvements that appeal to buyers' desires can also increase your home's saleability. Even a few tweaks can help viewers appreciate your property's lifestyle, so think light, fresh, serene, and you can’t go far wrong.
 
Our team can provide an up-to-date valuation that reflects any recent changes you’ve made. We’re also happy to discuss specific ideas to maximise your asking price. Contact us today to book a face-to-face consultation.
 
 



The industry must continue to adjust to higher interest rates

 
As of September, mortgage rates rose for the 11th consecutive month, while options for buyers on the market declined as the industry continues to adjust to higher interest rates.
 
The average cost of a two-year fixed rate mortgage reached a high of 4.5% in September, an increase of 1.9% since December last year.
According to Moneyfacts, the typical cost of a five-year fixed rate mortgage also rose to 4.33%, an increase of 1.69% since December, and the highest level since November 2012.
 
Meanwhile, lenders have withdrawn over 500 mortgage products during the past month, leaving 3,890 different deals for borrowers to choose from. This is the lowest level since April 2021 and it’s a fall from more than 5,300 deals at the beginning of December.
 
The number of different mortgages available dropped for all types of borrowers, from first-time-buyers, to those with large equity stakes in their property.
 
As for good news, the average amount of time a mortgage is available for before lenders withdraw it is increasing from a record low of 17 days back in August, to 28 days in September.
 
What are the causes?
Growing inflation has a domino effect, from an increase in the Bank of England’s base rate to higher mortgage rates.
 
The Bank’s Monetary Policy Committee has hiked the base rate by 1.65% since December last year, in an effort to control inflation.
 
The increases make it more expensive for lenders to borrow money on the money markers, which leads to the higher mortgage rates for customers.
 
Is it still a good idea to remortgage?
Despite the increase in mortgage rates seen since December last year, it is still definitely worth remortgaging if you are coming to the end of your current deal.
 
The average standard variable rate, which is the rate that lenders put you on if you don’t remortgage, has reached 5.4%, the highest level since December 2008.
 
This rate has seen a continuous growth for nine consecutive months, rising by 0.23% in August, the largest monthly jump ever recorded by Moneyfacts, which started keeping records in December 2007.
 
The rising rate isn’t expected to slow down any time soon, as standard variable rates typically move up and down in line with changes to the base rate.
 
Although interest on the average two-year fixed rate mortgage has now reached 4.24%, homeowners with a £200,000 mortgage could still save £136 a month by choosing to remortgage, rather than sitting on their lender’s standard variable rate. This is without even factoring in future interest rate rises.
 
The advantages of remortgaging
The main benefit to remortgaging is being able to save money by switching to a cheaper deal.
 
When your fixed, tracker or discounted mortgage deal ends, you will no longer benefit from a preferential rate. Instead, you will automatically move onto your lender’s standard variable rate, and your payments are likely to jump.
 
Another advantage of remortgaging is that you can ask to borrow more money to carry out home improvements, which will secure a healthy investment in the long run.
 
You can also lower or increase your mortgage term when you remortgage if you meet the bank’s eligibility criteria, which will further lower your monthly spends.
 
If you’ve been considering making your next property move and are looking for advice, get in touch with us today.
 
 



Agents are seeing a growth in the number of tenants renewing contracts

 
According to data from Propertymark, a shortage of rental stock is fuelling the surge in renters staying put, with 73% of letting agents saying they have seen a growth in the number of tenants renewing contracts over the past year.
 
Increase in long-term tenants
 
The rental market has seen a vast increase in tenancy renewals due to a shortage of stock, which has had a knock-on effect on rising rents. Remaining in the property is currently far more desirable than taking the risk with another property, or location, in a time of economic discomfort.
 
Propertymark’s July Private Rented Sector Report detailed the continuous surge in rental demand, with an average of 127 new applicants registered per member branch last month, noting that “this number has been on a slow upward trend since February.”
 
The imbalance between supply and demand has led to 82% of agents acknowledging that month-on-month rent prices increased in July. Pressure on rents has been steadfast since last year, with the cost-of-living crisis and rising inflation playing equal parts in the increases.
 
The cost-of-living crisis has created a vast number of long-term tenants, as saving for a deposit takes a back seat for the time being. The rental growth caused by current rampant demand is also a huge driving factor behind many people choosing to delay taking out a mortgage until supply picks back up, making rental accommodation a highly popular choice. Becoming a landlord in today’s climate allows the investor to generate capital growth, as their yield grows while the property value increases.
Is now the time to go fully managed?
 
With the disparity between supply and demand underpinning a rise in inflation, UK landlords are reaping the benefits of getting their foot in the door during a time of peak buoyancy. As the average property price increases, future sale prices also increase, meaning a buy-to-rent asset increases in value over time.
 
However, such an asset can be difficult and time-consuming to manage without help, particularly for new landlords who are still learning the ropes. The prospect of long-term tenants presents its own challenges too, as long-term use of a property demands more regular check-ups and maintenance.
 
To help landlords secure and maintain long-term tenants, letting agents can:
  • Find the right tenant for you and market your property.
  • Arrange the tenancy: A rental agent can handle everything from getting references to running credit checks, securing deposits, and drawing up tenancy agreements.
  • Collect rent: A rental agent can collect rent from your tenants and follow up on any late payments.
  • Answer tenant queries, deal with issues and concerns, and handle maintenance or repair work that needs scheduling.
 
Fully managed services can ensure the quality of your tenants
 
One of the most important reasons for becoming fully managed is to ensure that you have high-quality, dependable tenants. A managed service can help you to create long-term, positive relationships with tenants who are loyal, pay their rent on time and keep your property in good condition – giving you peace of mind.
 
If your tenants are staying put for longer, our fully managed services will alleviate the stress of taking care of your property. Find out more by getting in touch today.
 
 



Are you considering moving home before Christmas this year?

 
Moving home can often be a stressful process for sellers, but there are plenty of ways to make things run as smooth as possible. Timing sits somewhere at the top of the list, as the property market changes on a monthly basis, and demand fluctuate with it.
 
Get the property ready for marketing
Once you have decided to market your existing property, you will need to make sure it is photo-ready and looking its best for potential buyers.
 
Those looking to move in time for Christmas will want to be able to envision cosying up around the fireplace or sitting at the dinner table with family. So, make sure you can present your home to buyers as a fresh canvas by decluttering, deep cleaning and making the place feel brand new.
 
Choose the right selling agent for you
If you want to achieve the best price for your property, you need to find the best agent to sell it. Make sure you take extra care when making your final decision on the right agent and take the time to get to know them. A good estate agent will do the difficult work for you and take care of any nitty gritty complications which could slow you down. They will also accurately value your home and advertise it effectively and efficiently.
 
Arrange a valuation on your property early
Get this done as soon as the possibility of a future move crosses your mind, as it will allow you time to make any upgrades or adjustments to your property. It will also save you time later when you’re ready to sell, and will give you a good idea early about the scope of your budget for your new home.
 
Set the right asking price
Setting the wrong price - whether too high or too low - means you could miss out on suitable buyers willing to make fair and sensible offers. The best way to speed up your selling process is to set the right asking price for what your home offers, so you can reach as many potential buyers as possible and have a number of fitting applicants to choose from.
 
Book surveyors as soon as possible
Once you’ve found the right property for you, it’s advisable to ensure that you get a decent survey before you fully commit to the new home. This way you can avoid any unpleasant (and costly) surprises after you move in. A surveyor will be able to spot any issues with the property - so you won’t have to later.
 
Don’t forget the final details
In the excitement of a move, it’s easy to forget the small details. Ensure you tie up any loose ends such as informing utility companies that you’re moving, and having your mail forwarded to your new address – just in time for Christmas cards!
 
Have you considered selling with us? Visit our website to find out what we offer.
 
 



Supply is starting to see a steady increase since January

 
The ongoing imbalance between supply and demand could finally be seeing some leverage on the other side, with stock levels beginning to rise in the wake of a 3-year long slum. Despite obvious economic headwinds, consumer confidence in buying and selling property evidently remains robust, and the market has yet to see its predicted slowdown.
 
Buyers will be pleased to hear that the horizons on the market are expanding, with supply seeing a steady increase of 5% since January, which is the positive news many home hunters have been waiting for.
 
The latest OnTheMarket Property Sentiment Index, which reflects property market activity in July, has been released. It reveals that housing stock has reached its highest level in a year due to the return of a seasonally driven housing market.
 
The findings also suggest that there is no clear sign of political and economic uncertainty unsettling buyers or sellers.
 
Since February, there has been a consistent week-on-week increase in stock levels, with the highest level of available stock in July compared with any time during the 12 months prior.
 
It is also noteworthy, that stock levels were predicted to continue improving due to more potential buyers being on holiday, further diluting the pool of competitors.
 
Consumer confidence remains robust
 
Some 75% of active buyers in the UK were confident they would purchase a property within the next three months, while 80% of sellers expressed confidence in selling their property within the same period.
 
In July, only 4% of movers were concerned about securing a mortgage to fund the purchase of their next property, unchanged when compared to June 2022 (4%).
 
Speedy sales
 
The report revealed that 57% of properties were Sold Subject to Contract (SSTC) within 30 days of first being advertised for sale, compared with 56% in July 2021.
 
Unwavering buyer interest appeared to prevail through the pandemic, and despite the rising cost of living, sentiment remained unchanged in July 2022. The market is seeing more serious buyers committed to seeing the transactions through, giving sellers reliable applicants to choose from.
 
What does this mean for buyers?
 
A rise in stock after a lengthy drought can only prove positive for buyers waiting to make their move. Those who had been holding off in fear of rampant competition, surging prices, and tricky chain implications can now act with more confidence.
 
The law of supply says that a higher price will induce producers to supply a higher quantity to the market. Likewise, when supply is low, prices will rise as people scramble to buy up scarce resources. This is certainly true when it comes to the property market, and therefore, it’s best to time your purchase during spikes in supply.
 
What does this mean for sellers?
 
Increased buyer confidence and a more level market mean speedy and reliable sales for those selling their property. With stock gradually increasing, this offers a larger scope for buyers to take their time and choose a home that is right for them. Thus, opening the market to serious buyers who are committed and genuinely interested in properties they arrange viewings for, rather than making hasty and half-hearted decisions that could consequentially collapse at the last minute.
 
Thinking about selling? Book your valuation today.
 
 
*Information retrieved from YourMortgage