Author: Joshua Schofield

WHAT IS THE DIFFERENCE BETWEEN TENANTS IN COMMON AND JOINT TENANTS?

Posted on by Joshua Schofield

It’s Important Not To Overlook The Sometimes Dull But Essential Details That Go With Purchasing A Property

If you’re buying a home in Gloucestershire with your partner or a friend, you may be very excited about the process. But it’s important not to overlook all the dull but essential details that go with it.

Joint ownership brings legal implications along with it that you should address straight away, and one key question is whether you’ll be holding your property as “Joint Tenants” or “Tenants in Common”. At TG Sales & Lettings, we’ve realised that many prospective buyers have no idea what the differences are between these two terms! So, here is an overview of everything you need to know.

What Does “Joint Tenants” Mean?

If you are “joint tenants”, you each have an equal right to the entire property. As many as four owners can hold joint tenancy of a property, but it does raise some potential legal issues. Legally, you’re deemed to be a single individual, so you need just one mortgage, and when you want to sell the property, it must be a joint decision.

If one joint tenant passes away, the other joint owners are automatically left the property under a rule called “Right of Survivorship”. Since you can’t pass on the property in a will as a joint tenant, that’s a major consideration to keep in mind when choosing how you’ll hold the property.

What Does “Tenants in Common” Mean?

If you hold the property as “tenants in common”, each party will own their own separate share, which may differ in terms of size. So, as an example, one party may own 20%, one may own 30%, and one may own 50%.

When you sell the property, all parties must agree, but if you’re “tenants in common”, you can leave your share of the property to somebody other than your co-buyers in your will. Although legally speaking you can technically each have your own mortgage for your share of the property, few lenders offer these mortgages.

An Overview of The Similarities and Differences Between Tenants in Common and Joint Tenants

Agreement to Sell – Both joint tenants and tenants in common must agree with each other when it comes to selling the property.

Ownership Division – Joint tenants have an equal right to the entire property while tenants in common hold their own share.

Bequeathing the Property in a Will – Joint tenants cannot pass on the property in their will; their share passes automatically to the other joint owners, while tenants in common can pass their share to anyone they choose.

Joint Mortgages – joint tenants must have a joint mortgage for the property. Although tenants in common are not legally required to do so, they may find it difficult to find a lender who is prepared to split up the mortgage between tenants.

Is It Best to Be Joint Tenants or Tenants in Common?

You need to decide whether tenancy in common or a joint tenancy is best for your individual circumstances. In general, couples who are buying a home together find that holding the property as joint tenants is the best option for them, while people who are buying with friends or as part of a group of buyers usually find that a tenancy in common is the right choice for them.

If you’re ready to buy a property with your partner or friends in Gloucestershire, send us an email at rachel@tgres.co.uk or give us a call on 01452 300822 now. Our friendly team at TG Sales & Lettings are looking forward to helping you find the right home for you.

LATEST PROPERTY MARKET UPDATE MARCH 2024

Posted on by Joshua Schofield

Now that we’re moving into Spring, the UK property market is looking set for a buoyant year to come. Home movers appear to be more active as we enter the new season, which is a cause for cautious optimism, although pricing homes realistically is still going to be essential for some time to come.

Asking Prices On The Rise

According to figures from Rightmove, the first two months of 2024 have seen typical new seller asking prices rise by £3091, equivalent to 0.9%. That means average prices have gone up year-on-year by 0.1% following the annual falls that have been experienced since summer 2023. This takes the average asking price for a UK property to £363,839.

Yet, while this appears to be a promising indicator of a return to buyer confidence, it is important to keep in mind that price-sensitivity is still strong amongst prospective purchasers. Moneyfactscompare.co.uk reports that currently, it is taking 16 days longer for sellers to secure a buyer when compared with this time in 2023, since buyers are taking extra time to consider all their options carefully.

On the upside, though, plenty of properties were listed on the market over the past few weeks. In fact, the figure is up on last year’s numbers by 7%. Not only that, but buyer enquiries have also increased by 7%, which suggests a boost in market activity is on the way.

Mortgage Rates Falling

Stability is wavering in the mortgage marketplace, with mortgage products’ typical shelf-life having seen a dramatic fall from a high of 28 days at the beginning of last month – the highest number seen since this time last year – to just 15 days at the beginning of March – the lowest figure seen for 6 months.

Furthermore, as lenders are adjusting the deals that they are offering on a regular basis, the average interest rates for five-year and two-year fixed mortgages rose over the last month for the first time in six months, bringing the run of consecutive drops to an end. Currently the typical 2-year fixed rate has gone up to 5.76% from 5.56%, while the typical 5-year fixed rate has gone up to 5.34% from 5.18%. The Bank of England has also announced that the base rate will hold at 5.25% for a fifth consecutive time.

More Mortgage Products On The Table

The good news for borrowers is that fixed rates are still lower in March than they were at the beginning of the year and there is no shortage of good options on offer. In fact, the number of mortgage deals now available is at the highest level seen since early 2008. At the beginning of this month there were no less than 6004 different products to select from. This is up from 5787 a month ago, and 4372 this time last year.

For borrowers looking for a high LTV deal, there are more products to choose from today than at any other time in the last four years. Those who have a deposit of 10% can select from 761 products, while those who can afford a deposit of 5% have a selection of 318 products.

Rental Instructions Up But Costs Stay High

According to latest figures from Zoopla’s Hometrack Report, while there are 20% more properties available on the rental market nationwide than there were this time last year, the current supply remains below the average number before 2020’s Covid pandemic. Rental affordability also remains at its highest point for a decade, and it’s unlikely to improve any time soon without further expansion in the rental supply.

More than 50% of all private rental properties are now costing tenants over £1000 a month, which is close to double the number seen 5 years ago. In 2021, no local market outside Southern England had rents that were more than £1000 per month. Now, the only region where this still holds true is in the Northeast of England.

On the upside for prospective tenants, though, the recent drive to “Build To Rent” is creating new rental markets in city centres. More than 90,000 homes have been built under this initiative nationwide in the past few years, and more are in the pipeline. Hopefully, this may ease some tension in the rental market and help to curtail rental inflation in the near future.

Disappointing Budget Does Not Deter Buyers

Recent studies showed that just over 80% of prospective buyers were holding off on their decision to purchase a property until after the Spring Budget in the hope that some kind of pro-buyer announcement would be made. Sadly, despite rumours of the return of the 99% mortgage, no such policy found its way into the chancellor’s speech.

Nevertheless, despite the discouraging news from number 11, buyers haven’t been deterred from the housing market. 78% of would-be purchasers are still saying that they plan to carry on with their homebuying plans, even if Jeremy Hunt didn’t deliver the goods this time. Only 14% are now choosing to delay their decision, while just 8% are cancelling their plans completely following the government’s disappointing news according to propertyreporter.co.uk.

Looking Forward To Easter And Beyond

As Spring gets underway, the market is looking increasingly positive. Metrics for sales, new instructions, and buyer demand are all looking good, and buyers are enjoying a greater range of options, since more properties are being listed. As long as serious sellers present their properties to their best advantage and price them realistically, they should be able to secure a purchaser for their home this Spring.

What Next?

We are delighted to bring you our property market updates each month. If you are thinking of buying or selling a property in  Gloucestershire, please get in touch with us at TG Sales & Lettings on 01452 300822 or email rachel@tgres.co.uk.

A GUIDE TO REMOVALS COSTS

Posted on by Joshua Schofield

There is a vast array of criteria to consider when budgeting for an upcoming house move in Gloucestershire.

Removal costs are often a forgotten expense. However, it is essential to account for them, preventing any nasty surprises.

How do Removal Companies Charge?

There are a variety of ways companies bill for their services. Most will charge hourly, which means the quantity of items you require moving is generally a good indicator of how much the job will cost.

Try to give the removals company the most accurate description of your home and belongings to obtain the best quote.

No two homes will look the same, and basing your move on the number of bedrooms can mean you estimate completely wrong. Underestimating the number of items you need moving will only lead to a larger than expected bill, a frustrated workforce, and a more stressful process.

Which day of the week you chose to move will affect the cost. Fridays and Saturdays are generally the busiest, and therefore the most expensive day to move to a new house.

Beware of simply choosing the company with the lowest rates. Remember, they are transporting your possessions, and the last thing you want is any hiccups on the final hurdle of the moving process.

Long Distance Moves

Most removal companies will charge a minimum fee, equating to their rate for two hours. However, this flat fee is generally not a cause for concern. Even the shortest of moves usually take longer than this when loading and unloading the van is considered.

Long-distance moves are generally much more expensive due to the time required to drive between properties. You may, therefore, be tempted to hire a van and move yourself. However, by doing so, you could be adding a great deal of unwanted and unnecessary stress to your day.

Packing Services

You may also choose to hire the removal company to pack and unpack your belongings. This can further help reduce stress in the lead up to the move.

However, this service comes at a cost. Expect to pay anywhere from £150 for a one-bedroom property towards the £500 mark for a three-bedroom home.

Although this is an extra expense to add to the process, it can be worth it if you lack the time or inclination to get involved with these tasks. You will be impressed with the efficiency with which the professionals work.

Be sure to discuss whether materials (packing tape, boxes, bubble wrap) will be provided by the team when calculating the expense.

Many removal companies will also offer a dismantling service. Perfect for any flat pack furniture that you wish to rebuild in your new home, helping with the logistics of moving between rooms. These services generally start from around £100, depending on the item and the company.

Special Care Items

If you have any particularly delicate or precious items you want to be handled with more care, you will pay more for the removal company to deal with them.

This may include using specially designed crates for expensive electronics such as televisions and computers or carefully wrapping any delicate art pieces.

Extra Equipment Required

The removal company might need to use extra equipment for any particularly heavy or challenging items you own. Some pieces may not fit up or down the stairs, meaning they have to be removed through windows. This process will undoubtedly add to the total bill.

Delays

Unfortunately, delays can occur when it comes to moving home. If your move is delayed by a matter of hours, there may be a waiting charge to pay to the removal company to cover the time they have lost.

If your move is delayed to a completely different day, there may be a cancellation fee payable. Consider other factors that may be included, such as the price of storing items or funding accommodation for yourself should the move become disjointed.

Insurance

Insurance is one of the most significant benefits of choosing a removal company over attempting the task yourself. Good companies will offer a range of insurance plans, starting from as little as £20, ranging up to insurance covering you for £50,000 worth of damages.

Insurance is always recommended to give you peace of mind during the moving process.

Final Thoughts on Removal Costs

It is tough to place an accurate figure on how much your move will cost. There are many factors that will need to be considered, including the number of items you have, the level of support you require and the distance you are moving. So it’s best to do your research and gain quotes from multiple companies.

TG Sales & Lettings are your local property experts for the Gloucestershire area and are in contact with some fantastic, reliable removal companies.

Call us on 01452 300822 or email rachel@tgres.co.uk to chat with a member of our friendly and experienced team

 

LATEST PROPERTY MARKET UPDATE FEBRUARY 2024

Posted on by Joshua Schofield

As we reach the end of the second month of the year, the UK property market seems to be settling into a positive pattern, with buyer confidence continuing to rise and mortgage rates coming down.

A recent Dataloft Poll of Subscribers found that 85% of surveyed estate agents noticed an improvement in buyer confidence over the last three months, while the consumer confidence level has reached its highest point since January of 2022.

With hopes high for a reduction in interest rates on the horizon, we are moving towards spring with strong potential to see recovery in 2024’s housing market.

Biggest Increase for A Year in House Prices
The average house price has risen significantly throughout the UK according to both Halifax and Nationwide as we move into spring 2024. Average properties are now worth approximately £257,656, representing a rise of 0.7% according to Nationwide, while Halifax, the largest provider of mortgages in the UK, reports that an average home now has an asking price that is 2.5% higher than that from January 2023. This price hike is the biggest experienced since 2020, over double the 0.6% 20-year average. We can put these increases down to falling inflation, improvements in mortgage rates, and growing strength in the labour market.

More Buyer Enquiries Show Increased Market Activity
Prospective homebuyers are now starting to look at taking another step up the property ladder, with January looking set to be Rightmove’s Agreement in Principle service’s busiest month since its initial inception in 2022. The increase in demand is being met by equal enthusiasm from sellers, with 15% more new properties coming onto the market when compared with this time last year.

New agreed sales are up by 13%, showing that sellers and buyers are becoming increasingly aligned on pricing. Yet as a fifth of sellers are still accepting over 10% below their asking price to secure their sale, it remains clear that attractive pricing is still crucial.

Mortgage Rates Falling but Base Rate Is Holding
The Bank of England’s Monetary Policy Committee held a meeting on 8th February at which a majority decision was made to keep the base rate steady at 5.25%. This is the highest base rate seen since 2008’s Financial Crisis, yet instead of building societies and banks retaining higher interest rates on their mortgages, we are starting to see prices falling in February’s mortgage market, indicating that lenders are viewing the choice to hold rather increase the base rate as a positive sign from the Bank of England.

Moneyfacts now reports that both the current lowest fixed 2-year mortgage and fixed 3-year mortgage stand at 4.20%, with the lowest fixed 5-year mortgage having an interest rate of 3.93%. The number of available mortgage products for buyers to choose from has also increased for the sixth month in a row, with 5,899 different options currently on the table.

Growth In the Rental Market
During the last year, growth in the UK’s rental market was 8.3%, representing deceleration over the past three months from 8.8%. Yet, despite this drop, the growth rate remains at a historic high, with the 0.4% monthly growth comparing rather unfavourably to the 0.1% average between 2017 and 2019.

Currently, the average amount of rent tenants are paying in the UK each month comes in at £1,200, with renters in London paying the highest typical rent at approximately £2119 and those in the North East paying the lowest amounts at just £695.

London’s growth is slowing down as rents are hitting the affordability ceiling. It is now expected that rental growth will continue to slow down as affordability worsens, keeping demand firmly in check. Landlords appear to be taking a more realistic approach to rental pricing, perhaps taking the cost-of-living crisis into consideration as they set new rates, which is good news for those who are still unable or unwilling to purchase their own property.

Heading In the Right Direction for Spring?
With the start of 2024 seeing signs of success in the property market, it appears that we could be heading in the right direction for a positive Spring. Tenants and homebuyers alike are likely to see improvements as we move forward, making this an excellent time to start looking for a new home. As March is traditionally the month during which properties are most likely to secure a buyer, now is the perfect time for anyone considering selling to make moves towards finding an estate agent.

What Next?
We are delighted to bring you our property market updates each month. If you are thinking of buying or selling a property in Gloucestershire please get in touch with our friendly team at TG Sales & Lettings on 01452 300822 or email rachel@tgres.co.uk.

LATEST PROPERTY MARKET UPDATE: JANUARY 2024

Posted on by Joshua Schofield

2024 is upon us already, and the property market is already making a strong start in January. Both the rental and sales markets are thriving as the year begins, and landlords and homeowners alike look set to benefit. So, what’s happening in the UK property market? Read on to find out.

A Rise In Monthly Average Rents

Since January 2023, there has been an increase of 9% in the average monthly rent. This has added approximately £1200 to a typical annual bill over the course of the past 12 months. It looks as if the start of 2024 is still going to be difficult for tenants, who now have to find the equivalent of a month’s average rent on top of their previous annual bill. On the other hand, this is good news for landlords, who are enjoying good profits from their investments.

The average monthly rent nationwide as we enter 2024 is now £1200, with almost double that amount being typical in the capital. It’s worth noting, though, that rental growth is predicted to start slowing down as the months go on since worsening affordability is likely to keep the demand under control. Some markets are already showing some resistance to high rents, so landlords should keep this in mind when considering any further price hikes.

House Price Increases Since December

Homeowners looking to put their properties on the market this January could benefit from house price increases. There have been predictions of 3% increases over those from the end of last year, as the prospect of potential cuts in the interest rate alongside more affordable mortgages are likely to result in more transactions taking place.

After 2023 saw sustained falls in house prices, it was forecast before the year end that 2024 would experience a further drop of 4%. However that now appears to have been a premature estimate. An increase in the number of mortgage approvals being received over recent months is now believed to translate into a minimum increase of 10% in transactions over this year.

Since December, new sellers’ asking prices have increased by approximately £4571, which represents the largest growth for this time of the year since pre-Covid times. Although overall prices are still 0.7% lower than those from a year ago, experts say that this year’s start looks quite promising as buyer demand is growing, and 15% more properties are coming onto the market. According to Rightmove, the beginning of the month saw a fifth more sales being agreed than this time in 2023 which indicates buyer confidence is returning.

Forecasters have also predicted that house prices are unlikely to drop significantly before the end of the year, with a decrease of only around 1% nationally being expected by December 2024 thanks to an underlying strong level of buyer demand.

 

Competitive Pricing Crucial For January Sellers

Although the increase in asking prices is good news for January sellers, it’s important to bear in mind that competitive pricing will be crucial when it comes to finding a buyer. Even though the month so far has seen growth in buyer activity, the amount of properties being listed on the market is still outpacing the number of purchasers making enquiries. That means realistic and accurate pricing for the local area lies at the heart of securing a sale, and sellers should resist the urge to over-optimistically price their UK property.

Cheaper Mortgage Deals

Although Howard Davies, chair of NatWest sparked criticism with his statement earlier this month that it wasn’t “that difficult” to get onto the property ladder, buying a home will still be unaffordable for a significant number of prospective purchasers in 2024. Yet there is some promising news on this front.

Mortgage deals are already becoming a little cheaper, with 5-year fixed-rate mortgages now averaging at 4.86%, down from a peak of 6.11% last July. Rates are also expected to reduce further in the weeks and months ahead, with the best deals now coming in under 4%. It has been predicted that borrowing costs will be cut by the central bank from its existing 5.25% rate to under 4% by this time in 2025, and that should reduce the cost significantly of taking a mortgage out.

Mortgage Time Bomb Potentially On The Horizon

Although those taking out a new mortgage may benefit from reduced costs, a mortgage time bomb could potentially be on the horizon for the millions of UK property owners who are coming to the end of their cheaper deals. Around 1.5 million homeowners will face a considerable increase in the amount they have to repay every month, and that could mean an average family having to find an extra £1800 a year to cover their housing costs.

A Strong Start To The Year

With growth in the market thanks to more affordable mortgage deals and an increase in UK property prices, 2024 is getting off to a buoyant start this January. As we head towards Spring, it will be interesting to see just how well the experts’ predictions pan out, and whether February will be an equally positive month for landlords and sellers alike.

What Next?

We are delighted to bring you our property market updates each month. If you are thinking of buying or selling a property in Gloucestershire please get in touch with the team at TG Sales & Lettings on 01452 300822 or email rachel@tgres.co.uk.

Everything UK Landlords Need To Know In 2024

Posted on by Joshua Schofield

The UK property management landscape has always evolved rapidly, but the last couple of years have seen change accelerate significantly, and 2024 is set to be no exception. Much like in any other business, it’s imperative for you as a landlord in Gloucestershire to stay updated on the latest trends, regulations, and market shifts to thrive in 2024.

If you do this right, then the 2024 rental market changes could play in your favour, but for this to be the case, you’ll need to understand the changes that are forecast for 2024. Thankfully, we’ve done the research so that you don’t have to; in this article, we’ll investigate UK landlord guidelines and explore the key insights and considerations that landlords in Gloucestershire should keep in mind this year. Read on to get in the know!

Understanding Current Market Trends
As a landlord in England, you will already be aware of the rising costs of rental properties in Gloucestershire expected in 2024, but this is far from the only thing to consider. The world has changed significantly in recent years, and if you increase your rental prices without considering changing trends in the rental market, you could potentially limit your revenue. Let’s break down some of the major market trends that you need to be aware of.

Embracing Sustainability
From government initiatives to public activism, sustainability has been a hot topic that affects everyone over the last few years, but don’t be fooled into thinking this is just a buzzword. Prospective tenants are increasingly seeking eco-friendly properties in Gloucestershire equipped with energy-efficient features, for both environmental and financial reasons.

Many prospective clients will be seeking sustainability in their rental property in Gloucestershire to combat rising energy costs, while also doing their part to save the planet. Ignoring this factor could cost you many clients. For this reason, you should consider applying sustainable upgrades to your property, such as energy-efficient appliances and mindful waste disposal. Not only will this make your property more appealing to tenants, but it will also reduce your long-term operating costs.

Leveraging Technology
In the past, the landlord-tenant relationship tended to be a bureaucratic nightmare, but it no longer has to be this way. The adoption of innovative technology is making all areas of our lives simpler, and this includes administrative procedures, communication, and payments. All three of these areas are staples of being a landlord in Gloucestershire, and you’d be daft not to adopt the latest technology solutions to make your life easier!

While most landlords are already using online property portals to source prospective tenants, this is only the tip of the iceberg. There are dozens of technological software and hardware solutions available that have the potential to streamline not only landlord tasks but improve your tenants’ rental experience too. These include:

  • Using modern communication platforms such as WhatsApp
  • Leveraging online portals for rent collection and maintenance requests
  • Installing smart home technology to increase the appeal of your property
  • Using technology-driven security systems to give your tenants peace of mind

Financial Planning and Tax Considerations
In addition to evolving market trends, it’s imperative for you to become familiar with changes in your responsibilities as a landlord in 2024. These include tax considerations, the anticipated Tenant’s Reform Bill, changes to the Office for National Statistics operations, and more. Let’s take a look!

Changes to the Office for National Statistics
The first financial consideration that you’re going to need to take may sound complicated, but it’s actually very positive for you as a landlord. The Office for National Statistics (ONS) has always been a valuable resource for British landlords, ensuring they have the data they need to keep up with the latest pricing and rental trends. However, a recent announcement has outlined some significant changes to how the ONS will release such information.

Thankfully, this is good news; the ONS has greatly expanded its provided data points, offering a far more granular level of rental price statistics, instead of the generalised conclusion from past statistics. This will allow you to gain far more valuable insights into the best way to operate your business as a landlord, and best of all, it’s free to access! This is a secret weapon that many landlords are unaware of, so use it to your advantage and stay ahead of the curve!

Renters Reform Bill
Another significant change due to affect landlords in 2024 concerns the introduction of the Renters Reform Bill. This is set to benefit the rights of tenants while, unfortunately, making your life as a landlord somewhat more difficult. But as long as you’re aware of the bill’s implications, it shouldn’t be a problem. This new bill hasn’t yet been officially confirmed, but it is anticipated to be passed in early 2024.

Ultimately, the Renters Reform Bill will affect evictions, preventing landlords from evicting tenants unless their contract is over or there is a serious reason to do so. As long as you are aware of this in advance, it’s no big deal – you’ll simply need to plan ahead. Thankfully, it could still benefit you, as your tenants will be comforted by this enhanced accommodation security, a prospect that could foster an excellent landlord-tenant relationship and boost tenant retention.

Overall, the constant changes to the rental market can be intimidating, especially right now when things are changing so fast, but hopefully, this article has shown you that there’s nothing to worry about as long as you stay informed. By focusing on these critical aspects, you can navigate the dynamic rental market in 2024 with confidence and achieve long-term success in property management in Gloucestershire.

However, it’s important you don’t become complacent with this information, as it wouldn’t be surprising if further trends, bills, or even tax changes affect landlords in 2024. Keep your eye on resources such as the ONS and conduct regular research, and you’ll be taking steps that many other landlords haven’t even considered, helping your business to thrive!

TG Sales & Lettings are rental property management specialists in Gloucestershire.

Call us on 01452 300822 or email rachel@tgres.co.uk to find out how we can help you stay ahead with UK landlord guidelines 2024.

Latest Property Market Update: December 2023

Posted on by Joshua Schofield

Mortgage rates continue to fall, the best cities for investment returns have been revealed, and the UK’s 10 happiest places to live have been announced. Plus, we wrap up 2023 Spotify-style! Read on to find out more.

Two-year Mortgage Rates Fall Below 6%
Mortgage rates are continuing to head in the right direction for buyers and homeowners whose deals are due for renewal, with average two-year fixed deals falling below 6%.

The drop in rates follows confirmation from the Bank of England that the base interest rate is being held at 5.25% – the second straight freeze – and competition between the UK’s major lenders has intensified as they battle to keep existing customers and attract the small pool of new homeowners who are coming into the market.

10 Happiest Places to Live Revealed
A survey by property website Rightmove has revealed the UK’s 10 best places to live, as voted for by residents. The company’s Happy at Home Index has been running for 12 years, and for the first time, it’s a London area that’s taken the top spot.

Richmond upon Thames took the crown from last year’s winner, St Ives in Cornwall, which dropped down to 9th. Winchester in Hampshire took the runners-up spot, while Monmouth in Wales finished in third.

The survey asked more than 26,000 people to rank things in their area, from community spirit and a sense of belonging to public transport connections and essential local services.

Click here for the complete top 10

Top 10 Cities for Rental Yields Revealed
If becoming a landlord is on your list of New Year’s resolutions for 2024, you might want to check out the findings of a study by property website, Zoopla.

In it, they’ve revealed the top 10 cities and large towns in the UK for buy-to-let returns. The average gross rental yield in the UK is currently 5.49%, but Zoopla’s list of towns and cities smashes that figure, and could be a good indicator of where to invest your money in the new year if you’re looking to buy a second property.

Top of the list is Sunderland in the North East, where the average gross rental yield is a very impressive 8.5%. Not far behind is Dundee in Scotland, which also passes the 8% mark at 8.07%, while Burnley in Lancashire takes third place, with a return of 7.96%.

All of the top 10 are in Scotland and the north of England, and they all return more than 7% each year.

Click here for the full list.

2023 in Review
With 2023 drawing to a close, it’s the perfect time to take a look back at the year that was. Thanks to the statisticians at Zoopla, we can now share some of the key stats from the past 12 months:

One million homes were sold, and house prices fell 1.2% on average across the UK. The biggest falls were seen in the East of England and the South East, at -2.6% and -2.4% respectively. Scotland and Northern Ireland were the only regions in the UK where prices have risen over the past 12 months.

The most popular types of homes to be sold were terraced houses, with 140,000 changing hands in 2023, followed closely by semi-detached houses. 130,000 of these were sold over the past year. 148 farms and 57 houseboats were sold too.

The Bank of England raised the base interest rate five times across the year. When we saw in 2023, the interest rate was 3.5%, and as we close the year out, it sits at 5.25%.

This led to a huge knock-on effect on mortgage rates, which peaked at an average of 6.44% for a two-year fixed rate in July and 6.37% for a five-year fixed rate in early August. Both are now below 6%, and it’s hoped they’ve seen their peak.

As for standard variable rate mortgages, these went from an average of 6.61% at the start of the year to a whopping 8.74% at the end of 2023.

At the start of the year, selling a house took 36 days on average, and as 2023 draws to a close, it’s only slightly increased to 38 days. It dipped briefly in April to 29 days but has crept back up in line with rising inflation and mortgage rates.

And lastly, what about renters? It’s been a difficult year for tenants, with new lets rising by at least 10% for the past 20 months in a row. However, demand hasn’t suffered – it’s remained at 51% above the five-year average for most of 2023.

We are delighted to bring you our monthly property market updates. If you are thinking of buying or selling a property in Gloucestershire please get in touch with us on 01452 300822 or email rachel@tgres.co.uk.

Latest Property Market Update: November 2023

Posted on by Joshua Schofield

This month, we pick out the key points that affect the housing market from the chancellor’s Autumn Statement. There’s also been an increase in homeowners slipping into mortgage arrears, rents remain on the rise for new lets, and we reveal the best places to buy to avoid stamp duty for first-time buyers.
Read on to find out more.

Autumn Statement – Key housing market points

Chancellor Jeremy Hunt has made his Autumn Statement , and while there were no major surprises, a handful of the announcements will have a direct impact on the property market.

Firstly, the Mortgage Guarantee Scheme has been extended until the end of June 2025. The scheme, which was first introduced in 2021 and was due to end in December 2023, was designed to encourage lenders to offer more 95% loan-to-value mortgages to buyers with a 5% deposit. If a buyer defaults on their mortgage payment, the government steps in to cover some of the shortfall.

Whilst the scheme hasn’t been used extensively – with around 5% of first-time buyers using it since it was introduced – it has opened the door for more people to get onto the property ladder, and mortgage rates for buyers with a 5% deposit have dropped slightly in November, to 6.03% on average.

The chancellor used his Autumn Statement to promise investment of more than £110m to build 40,000 new homes over the next year. £32m has also been earmarked to beat a planning backlog and develop new housing in cities such as Cambridge, Leeds, and London.

In some good news for renters, the Local Housing Allowance rate has been increased. The rate, which affects how much help you get when renting from a private landlord, has been frozen since 2020, but the new increase will give 1.6m households an average of £800 support next year.

Mortgage arrears on the rise

The number of property owners falling behind on their mortgage payments rose sharply over the summer months, with UK landlords hit particularly hard.

Figures from UK Finance show that 87,930 homeowners were in arrears between June and September – an 18% increase on the same period in 2022. For landlords, it’s even worse, with the number in arrears having doubled in the past 12 months.

Whilst the sharp increase of homeowners in arrears may seem alarming, it still represents just 1% of the UK’s 8.8m outstanding mortgages. However, with an estimated 1.6m mortgage deals due to expire next year, the number of homeowners is set to increase further.

Already in 2023, the number of people in arrears jumped 7% in July to September compared with the previous quarter, although a slowdown in rising mortgage rates will hopefully keep mortgage defaults low.

Average rents for new lets continue to rise

The average rent for a new let has increased by more than 10% over the past year. It now stands at £1,166 per month according to property website, Zoopla. This in part has been caused by rising interest rates and cost of living.

But with demand for rental properties currently running at 27% above the 5-year average, many landlords now see multiple applicants per property with competition high. Average annual rents are £14,000, compared to £12,700 a year ago. The increases are much lower for existing renters, who have seen their annual rent increase by 5.7% on average.

First-Time Buyers: Best places to buy to avoid stamp duty

Stamp duty can add several thousand pounds to the cost of a property, and it’s a particularly unwelcome expense for buyers taking their first steps on the property ladder.

In England and Northern Ireland, stamp duty is payable on any property over £425,000 for first-time buyers, but one leading property website has revealed the areas where buyers are least likely to be affected.

According to Zoopla, the top places to buy for first-time buyers looking to avoid stamp duty are:

  • Hull
  • Blackpool
  • Middlesbrough
  • Hartlepool

Here, 98% of homes are for sale at less than the threshold.

Stoke-on-Trent isn’t far behind either, with 96% of properties falling below the £425,000 mark.

By region, the best place to buy is the North East, where 93% of properties are priced under £425,000, while at the opposite end of the scale, it’s no surprise to see that London is the most affected area for stamp duty, with just 27% of properties under the threshold.

It’s not all bad for first-time buyers in the capital though. If you’re looking to avoid stamp duty, then Barking and Dagenham are areas with the most properties priced under the threshold, with 69% of homes in the area available for less than £425,000.

We are delighted to bring you monthly property market updates. If you are thinking of buying or selling please get in touch with us.

Maintenance Tips for Landlords: Don’t Suffer The Consequences of Neglected Property Repairs

Posted on by Joshua Schofield

Owning a rental property in Gloucestershire comes with its own set of responsibilities, and one of the most critical is ensuring regular maintenance. That’s why we find that maintenance tips for landlords are always welcomed! Unfortunately, many Gloucestershire landlords neglect this crucial aspect of property management, which can lead to issues, affecting both landlords and tenants.

In this article from the team at TG Sales & Lettings we’ll explore the common mistakes landlords make by failing to maintain their rental properties. We’ll also look at why prioritising property maintenance is essential for a successful rental experience.

The Consequences of Neglected Property Maintenance

Neglecting property maintenance can have far-reaching consequences that affect landlords and tenants. These are some common issues along with our maintenance tips for landlords:

  1. Deteriorating Property Value Due to Neglected Repairs

When landlords fail to invest in regular maintenance, the property’s condition naturally deteriorates over time. This decline can lead to a significant reduction in the property’s overall value. A poorly maintained rental property becomes less appealing to prospective tenants and can also result in lower rental income when compared to well-maintained properties in the same area. Additionally, the resale value of the property may decrease, making it difficult to realise a profit if you decide to sell.

  1. Tenant Dissatisfaction Due to Neglected Property

Tenant satisfaction plays a pivotal role in the success of your rental property business. A neglected property can lead to tenant dissatisfaction, and unhappy tenants are more likely to terminate their agreement early or report maintenance issues, creating additional stress and expenses for landlords. Unresolved maintenance problems can also lead to legal disputes and potential fines if the property violates government regulations.

  1. Increased Maintenance and Repair Costs Over Time

One of the most significant mistakes landlords make is postponing necessary repairs and maintenance tasks. When minor issues are ignored, they escalate into more extensive and costly problems. For example, a small leak can lead to water damage, mould growth, and structural issues if left unresolved. Regular inspections and timely repairs prevent costly scenarios, ultimately saving landlords time and money.

The Importance of Regular Property Maintenance

Now we’ve discussed the consequences of neglecting rental property maintenance, let’s delve into why regular maintenance is crucial for landlords:

  1. Longer Tenant Retention

Happy tenants are more likely to stay long-term, reducing void periods and turnover costs for landlords. Regular maintenance ensures that the property remains in good condition but also fosters positive tenant-landlord relationships. When tenants see that their landlord is proactive in addressing maintenance concerns promptly, they are more likely to renew their tenancy agreement.

  1. Legal Compliance Met

Landlords with rental properties in Gloucestershire are legally obligated to provide safe and habitable living conditions for their tenants. Neglecting property maintenance can result in legal repercussions, including fines and penalties. To stay compliant with local housing regulations, it is essential to conduct regular inspections, address maintenance issues promptly, and keep thorough records of maintenance activities.

  1. Enhanced Property Value

Maintaining a rental property’s condition and appearance attracts quality tenants and enhances its market value. Well-maintained properties are more appealing to prospective renters and potential buyers. By consistently investing in property maintenance, landlords can secure higher rental income and achieve better resale value when the time comes to sell the property.

Tips for Effective Property Maintenance

To avoid the common mistakes associated with neglecting property maintenance, here are some tips for landlords in Gloucestershire:

  1. Create a Maintenance Schedule

Establish a regular maintenance schedule that includes routine inspections and preventive maintenance tasks. This schedule should cover essential areas such as plumbing, electrical systems, roofing, and heating systems. Regularly inspect appliances and address any issues promptly.

  1. Prioritise Tenant Communication

Encourage open communication with your tenants regarding maintenance concerns. Provide tenants with clear instructions on how to report issues and respond to their requests efficiently. Make sure tenants are aware of their responsibilities in maintaining the property, such as reporting minor problems and promptly addressing any damages they may cause.

  1. Budget for Maintenance Expenses

Set aside a portion of your rental income for maintenance expenses. Having a dedicated budget for maintenance ensures you can cover the costs of repairs and improvements without dipping into your personal finances. Remember that proactive maintenance is an investment that will save you money in the long run.

Property Maintenance is a Responsibility Landlords Must Embrace

Regular property maintenance is not just a choice, it’s a responsibility that Gloucestershire landlords must embrace. Neglecting rental property maintenance can lead to financial losses, legal issues, and tenant dissatisfaction.

If you’re a landlord who would like more information on how to enhance your rental property value, attract and retain quality tenants, and maintain legal compliance, our team at TG Sales & Lettings would love to hear from you. Please contact us at rachel@tgres.co.uk or call us on 01452 300822. We are waiting for your call.

What’s Happening in the UK Property Market: September 2023

Posted on by Joshua Schofield

Interest rates have finally been frozen, rental costs have hit new highs and sadly mortgage arrears are on the rise. Read on to find out the latest on all this and more.

UK Interest Rates Frozen

After 14 straight increases, the Bank of England has announced a freeze on their base interest rate, which remains at 5.25%.

The surprising move has already had a positive impact on property buyers and homeowners who will be remortgaging in the coming months. Nationwide was the first major lender to reveal a reduction in mortgage rates, with other lenders expected to follow suit in the coming weeks.

The surprising move by the Bank to freeze rates, comes after inflation was revealed to have slowed to 6.7% in August – a far bigger fall than was expected, but still a long way above the Bank’s 2% target.

Rental Prices Hit New Highs

The Telegraph reports that the growth in rental prices hit a new record high as the national rental crisis deepens, official data shows. Rents in London rose by 5.9pc year-on-year, the fastest pace since records began in 2006, according to the Office for National Statistics.

Across the UK, rent growth hit a new high for the sixteenth month in a row, with costs climbing by 5.5pc. The jump in rental costs has been so great, that the increase in the past 12 months is higher than the increase over the four years from 2015 to 2019. 

Several factors have contributed to the sharp increase, including higher mortgage rates for landlords, which have been passed on to tenants, as well as demand for rental properties continuing to far outweigh the supply available.

Value of UK Mortgage Arrears Jumps by a Third

The Bank of England has revealed that mortgage arrears across the UK climbed by almost a third in the period from April to June this year, when compared with the same period in 2022.

Their figures have revealed that outstanding mortgage debt in the UK is now £16.9bn, the highest since 2016.

Mortgage rates have risen sharply in the past 12 months, with the typical rate on a fixed mortgage deal currently hovering around the 6% mark, although the freeze in the Bank of England’s base interest rate should see that figure come down slightly.

While some experts are forecasting mortgage defaults to rise further, many point to the fact that the number of homeowners who are unable to repay still remains relatively low. 

According to the Bank, 16% of mortgages in arrears between April and June were new cases, which is a similar figure to the number from the first three months of the year. 

Average House Prices Fall by £14,000 in a Year

Last month saw the fastest annual rate fall in 14 years according to major lender, Halifax, with prices dropping by 4.6% in the 12 months to August.

The drop, which knocked around £14,000 off the average house price, was the biggest decline since 2009, as rising mortgage rates continue to have a major impact on buyers. 

The lender is expecting the falls to continue for the rest of the year, with prices having dropped 1.9% between July and August alone.

And it’s not just Halifax who have reported a major fall in prices. Fellow major lender, Nationwide, also revealed their biggest fall since 2009, but their figures represent an even bigger percentage decrease, of 5.3% over the same 12-month period to August.

The Cheapest Places to Rent a Home Revealed

With rental costs reaching new highs, a study by property portal, Zoopla, has revealed the cheapest areas in the UK to rent a home.

The North East came out on top, where average rents are £649 per month, followed by Northern Ireland, where it’s £749 per month. 

Unsurprisingly, London came bottom of the list. Average rents in the capital have climbed to £2,053 per month – the only part of the UK where rent is more than £2,000 per month. For context, the next highest part of the country to rent in is the South East, where the average cost is £1,254 –  around £800 cheaper than the capital. 

However, while London leads the way for rental costs, it’s actually Scotland that saw the biggest increase over the past 12 months. Prices there rose 12.7% over the past year, but with average rents of £748 per month, it’s still some way behind the capital in monetary terms.

For more local property market news and updates and a more detailed overview of the Gloucestershire area, get in touch with TG Sales & Lettings. We are your local property experts. Call us on 01452 300822 or email rachel@tgres.co.uk.