Advice to help in your property journey!

Welcome to our March newsletter, following the recent budget announcement extending the Stamp Duty Holiday and introducing 95% mortgages, we explore how much could you save. We've already seen 750,000 buyers make savings from the Stamp Duty Holiday so far, find out what this will mean for buyers and investors over the next few months.

If you're a landlord, we urge you to make sure you comply with the latest electrical regulations before the deadline on April 1st or you could risk fines.

Finally, since the property market reopened last year, we've seen a 10% price surge in detached homes as buyers priorities are changing, wanting more space and bigger rooms.

We hope you enjoy this months edition!

750,000 buyers have seen stamp duty savings so far

 

It's been estimated that 600,000 homebuyers agreeing a sale from May 2020 onwards will not pay any stamp duty at all and are set to be saving £5 billion in total – that is an average of £4,660 each, according to Zoopla.

 

Last month, many questioned whether the further 140,500 waiting to complete would be able to do so in time for the March 31st deadline, but in light of the government's March Budget announcement, those concerns are no longer necessary.

 

Not only have the government extended the stamp duty holiday for another three months – taking us to June 30th – but the scheme will also have a staggered ending, with properties worth £250,000 or under eligible for savings of up to £2,500 until 30th September this year.

 

Along with an extended furlough scheme and the re-introduction of government-guaranteed 95% mortgage loans, these initiatives will protect the property market and mean that homeowners, first-time buyers and investors are shielded from a sudden withdrawal of support.

 

Who does this affect?

With the stamp duty only paid on completion, it has not only benefitted those already in the process of buying when this announcement was made but also acted as an incentive for other buyers to move before the original 31st March deadline.

 

This demand and more homes on the market has boosted overall activity levels in the property sector.

 

So, given the extension, it's predicted that we'll see a strong spring and summer for property sales, having already demonstrated above average seasonal averages for the previous winter.

 

 

What can I do to speed up my property transaction?

If you’re in the process of buying a home, there are a number of steps you can take to help make the conveyancing process go as smoothly as possible.

1. Make sure you have all the relevant paperwork to hand.

2. Respond to any additional information as quickly as possible.

3. If you need to sign any documents and return them to your solicitor, deliver them by hand.

4. Communicate regularly with your solicitor and estate agent to keep everything on track. Maybe agree to have weekly updates from everyone involved.

5. Prepare to be flexible. 

 

Research Director from Zoopla – Richard Donnell – commented last month that “demand for housing started 2021 as strongly as last year", going on to say that at the time, there was "limited evidence of new buyers being put off by the proposed ending" of the stamp holiday on the 31st March.

Contact us today for more information or to get started with your next sale or property purchase.

 

 

 

Good news for first-time buyers as lenders allow smaller deposits

 

Over the last 12 months, first-time buyers have found it more difficult to move forwards with their purchase plans, as low-deposit mortgages became increasingly scarce.

 

Now that lenders have begun to re-introduce their 10% deposits, the current situation is looking up for new homeowners, as the number of available products at 90% loan-to-value ratio rose by 29% in the first two weeks of February.*

 

It is estimated that around £5 billion is currently being held up in the first-time buyer’s market due to the COVID-19 pandemic, as many future homeowners have decided to delay their move until they have greater financial stability and job security.

 

Are you looking to try again with your first property purchase?

Nine in ten 90% mortgages were withdrawn from the market in the wake of the COVID-19 outbreak last spring. 

 

Nearly a year on, first-time buyers have been handed a serious boost, with the majority of lenders now offering low-deposit mortgage deals and reducing the restrictions they put in place on how much of the deposit could be 'gifted' by friends or family members.

 

To learn more about your prospects as a first-time buyer, please visit our website.

 
*Moneyfacts

Landlords urged to comply with electrical safety regulations

 

What are the new electrical safety standards?

The new electrical safety standards require landlords to ensure the safety of all electrical wiring and fixed electrical installations are tested and signed off for each of their properties.

 

If the test highlights any investigative or corrective work, the landlord has 28 days to rectify the issue.

What exactly needs to be tested?

The fixed electrical parts of the property.

• Wiring
• Socket outlets
• Light fittings
• Fuse box
• Showers
• Extractor fans

What does not need to be tested?

The new regulations state that the tenant is responsible for portable electrical appliances and therefore tests on these items are not required.

 

However, it is recommended that the landlord carries out tests on the portable appliance items they provide for good practice.*

When will the new standards be enforced?

For existing tenancies, an electrical safety test will need to be carried out by 1st April 2021.

For new tenancies, all electrical installations must be tested before the tenancy begins.

Who can carry out the electrical safety test?

Only a qualified electrician can carry out the test. Guidance for choosing a competent tester:

- Electrical Safety Roundtable
- Registered Competent Person Electrical single mark and register

What do you need to do as a landlord once the test has been completed?

- Provide a copy of the electrical safety report to each tenant in their existing properties within 28 days of the inspection.

- If requested, provide the local authority with a copy within seven days.

- Supply a copy of the safety report carried out to the electrician conducting the next safety report.

- Provide a copy of the most recent report to any new tenants.

- If requested, provide a copy of the most recent report to any new prospective tenants within 28 days.

- Electrical installations must then be tested every five years.

What happens if landlords do not carry out corrective work highlighted by the report?

The local authority has the right to enter the property (with the tenant's permission) to rectify the problem and will notify the landlord of this action.

 

The local authority can then bill landlords for the cost of any work completed by them.

 

If any issues highlighted within the report are not rectified within 28 days, landlords will potentially be faced with a fine of up to £30,000.

Landlords have the right to appeal to the First-tier Tribunal against any decision of the local authority.

 

Due to current restrictions with the pandemic, many within the sector are concerned about ensuring their compliance in time with qualified help.

 

If you'd like to talk about this in more detail, visit our website or learn more about our services for landlords.

 

*GOV.UK

10% price surge for detached homes due to changing priorities

 

Since the property market reopened last summer, we've seen a market boom that's led to record activity for new listings and sales agreed in the UK, as homeowners rush to find somewhere more suited to their lockdown needs and lifestyle.

 

The average price of a detached home was £486,595 in December 2020, which when compared to the previous year is a massive increase of £43,364.

 

This increase in value seems to be directly related to the fact that house hunters are seeking properties with more space since the emergence of the pandemic, as well as the start of the working from home new norm.

The second highest increase year-on-year were for semi-detached properties, which increased 6.26% to £287,313.

Russell Galley, Managing Director at Halifax, said: “as many continue to work from home, this has led to a significant increase in demand for bigger properties, which has likely driven the boost in price we’ve seen in detached homes versus other property types.

“Over the past six months, the average UK house price has risen by 6.3%, making it the market’s best half-year performance since early 2007.”

In the last two decades, the price of a detached home in the UK has trebled. In 2000, a typical detached property could be bought for an average of £164,820.

 

However, it’s the last five years which have seen the sharpest price increase.

 

In 2015, the jump from a semi-detached to detached home would be just under £150k, with the gap widening to just under £200k in 2020.

How much could your property have increased in value by? If you've not yet obtained an updated market appraisal for your home, you could be unaware of its value in light of current market conditions.

 

To get started with your next sale or purchase, visit our website today or talk to us directly to book your valuation.

 

 

 

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