Advice to help in your property journey!

Welcome to our April newsletter, as we find ourselves a year on since the first initial lockdown, we take a look back on the past 12 months at the key trends we've found emerging in the property market. 

With more and more buyers finding their feet again, more mortgages have been agreed for early 2021 than any time since 2007. Further into our newsletter, we're pleased to say residential transactions are 23% higher following the Stamp duty extension and successful vaccine rollout.

Finally, have you been thinking about investing in a buy-to-let property? We've put together everything you need to know before making your next property purchase.

We hope you enjoy this months edition!

Dykes End, Collingham, Newark

This extended detach cottage is bursting with character whilst occupying a generous sized plot and benefiting from having the perfect mix of both now and original features.

 

£650,000

Click here to read Dykes End, Collingham, Newark.

The Mount, Redhill, Nottinghamshire

This extended and much improved detached house is a credit to the current owners as they have made improvements in every room to create a stunning contemporary place for anyone.

 

£475,000

Click here to read The Mount, Redhill, Nottinghamshire.

Bladon Close, Mapperley

The detached four bedroom house offers an abundance of space throughout and is excellently presented making it an ideal purchase for any family buyers looking for a property.

 

£360,000

Click here to read Bladon Close, Mapperley.

Take a look back on a year of lockdown and what it has meant for property

 

 

A year of being homebound has given us a lot of time to reflect on what's important in our personal and professional lives, and we've seen a huge shift in attitudes within the property sector too.

 

Over the last 12 months, there has been a huge change in the way homeowners and tenants view their homes.

 

Here are just some of the significant developments since the pandemic:

 

 

Home renovations have spiked massively

 

Being trapped inside has left people with plenty of time to reassess their current living situation and notice cracks and flaws they'd previously been able to overlook.

 

As working from home became a 'norm' for the country, we found that our living spaces were impractical and did not help us maintain a healthy work-life balance, with issues over Broadband speeds, unsuitable desk set-ups and distracting environments.

 

Regardless of the restrictions in place, it was so essential for the UK workforce to have more space that over 60,000 applications for planning permission were submitted by homeowners wanting extensions.

 

Over this period, we have also spent a combined £55 billion on renovations and DIY projects.

 

When asked, 63% said their reasons for completing renovations right now was due to having spent more time at home and wanting to improve their living situation, whilst other common reasons were to prepare their property for sale.*

 

 

More homebuyers are looking to escape to the country

 

As a result of our search for more space, Rightmove have reported a 69% rise in the number of sales being agreed for properties in rural areas, compared to 49% in urban areas.

 

With spring and summer on the way, as well as the prospect of lockdown regulations being lifted, many Brits are currently on the search for bigger gardens and a new lease of life with larger properties.

 

 

 

If you are looking for more information on recent changes in the market, get in touch with one of our expert agents.

 

 

*money.co.uk

 

More mortgages agreed for early 2021

 

Mortgage approvals have reached a 14-year high, propelled by last year's property market boom.

 

The Bank of England’s mortgage data from the end of last year shows a 24.2% increase in mortgages agreed compared to the previous year, and at any time since the global financial crisis, with £87.7 billion worth of mortgages agreed.

 

In Q4 2020, mortgage lending reached £76.6 billion, with a year-on-year increase of 4.2%, whilst the share of mortgages with a low loan-to-value was 4.5% down in a year; the lowest since 2007.

 

Considering that the housing market was effectively closed for two months in 2020, it is incredible to see that the year ended with more approvals than the one prior.

 

The value of new mortgage commitments hitting a 14-year high was largely driven by homeowners who looked to move into larger properties and see savings of up to £15,000 from stamp duty tax in the process.

 

This activity has resulted in the annual growth rate for new mortgage commitments almost quadrupling in Q4 2020.

  

April should signal a turning point for first-time buyers, who will now have access to 95% mortgage options once again due to government-guaranteed support.

 

Having been absent until now, it's thought that the return of lower deposit mortgage products will lead to more positive growth for the sector in 2021.

 

As we head into the popular seasons for home selling, with schools and businesses reopening and the vaccine program continuing to take effect, we'd like to help you with your plans this year.

 

To learn your property's value, visit our website.

 

 

 

Residential transactions up 23%

 

February saw a total of 147,050 residential transactions according to HMRC, which is a 23% increase from January’s total and a whopping 48.5% more than February 2020.

 

The cause of this surge seems to be as a result of the vaccine roll out, as well as the stamp duty holiday.

 

As transaction numbers increase month-on-month, we're able to see just how strong the market is, having shown tremendous resilience so far during the pandemic.

 

As buyers and sellers were previously rushing to meet the original stamp duty deadline, which should have seen savings end on March 31st, it's anticipated that even more sales will be agreed and records beaten over the next few months.

 

 

Whilst the stamp duty holiday as we know it will be in place until the end of June, offering up to £15,000 worth of savings, there will be homebuyers who benefit long after this date with a phased out easing that sees smaller savings until September. 

 

Due to Brexit and then COVID-19, there have been delays and hesitations in the sector, with a number of us wanting to see a return of 'normality' before proceeding with any plans.

 

If you’re looking to start the buying or selling process in 2021, get in touch with our team today.

 

 

Looking to invest in buy-to-let?

 

Investing in a buy-to-let property is a dream that many of us will have at one point or another.

 

Property has always been a dependable investment option, with successful landlords able to set up their rentals to run like clockwork whilst benefitting from an additional source of income.

 

Before considering your first step, there are some key considerations to be aware of.

 

 

It won’t happen overnight

 

As much as we would like to say otherwise, having a buy-to-let property doesn’t just happen overnight.

 

Just like starting a new business venture, there are rules and regulations you need to comply with to protect yourself and your property.

 

Whilst some of these components can take time to understand and navigate, lettings agents like ourselves are fully equipped to guide you through all of the requirements.

 

 

Know the area you’re planning to invest in

 

It’s important to do your research on the area before signing on the dotted line, such as speaking to local agents about seasonal trends and rental yield opportunities.

 

Is it a hotspot for rental demand? Are there any attractive amenities, universities or transport links nearby that would appeal to tenants?

 

 

Ensure you can afford a buy-to-let deposit

 

Whilst a standard home can be secured with as little as 5% of the price of the property, a buy-to-let investment is usually much higher.

 

The average deposit is 25% for a buy-to-let mortgage.

 

It's also likely that your income will be evaluated, as you need to be earning at least £25,000 a year for most lenders.

 

 

Think about your target tenant

 

It’s important to put yourself in the shoes of a tenant and consider what they would want from a property.

 

Being a flexible landlord is key to ensure that tenants stay for longer, which is always great news for a landlord as you can minimise on void periods and secure your rental income.

 

When you have your buy-to-let property ready to market, it is a good idea to position your home based on the type of tenant you’re targeting, such as using the right communication methods to reach them.

 

 

For guidance on how to start your buy-to-let journey, get in touch with our experienced team.