Property Market Update: What’s Been Happening In The UK Property Market – November 2021

November-2021-Property-Market-Update (1)

The UK property market has seen a drop in sales, but prices continue to rise. Meanwhile, the happiest place to live in Britain has been named in a survey, and one mortgage lender has launched an extraordinary new fixed-term product.

These are just some of the headlines this month in November’s UK property market update. Read on to find out more.

House Sales Fall 52% In One Month, But Prices Continue To Rise

Figures released by HMRC have shown a significant 52% drop in property transactions across the UK for October, following the end of the government’s stamp duty holiday.

There were just under 77,000 transactions completed as buyers rushed to get their purchases completed before the 30th September. This made it the slowest October since 2012 and signalled a 28% drop in transactions from the same month last year.

Despite the slowdown in sales, prices continued to rise across the UK, with Halifax reporting a 0.9% increase in average property prices, which was the fourth consecutive month they’ve risen. Their data also confirms that the average property price in the UK has crept above £270,000 for the first time, while fellow lender Nationwide also reported an increase of 0.7% on the average price.

40-Year Fixed Rate Mortgage Launched

In a very rare move, one lender has recently launched a fixed-rate mortgage for up to 40 years.

Specialist lender Kensington Mortgages has taken the highly unusual step as they seek to capitalise on growing uncertainty among buyers and homeowners who are anticipating an increase in interest rates.

Although some lenders already offer a 10-year fixed term mortgage, Kensington’s new deal will allow borrowers to sign up for anything from 11 to 40 years.

The interest rate will vary depending on the size of your deposit and the length of the mortgage term, but for those fixing between 36 and 40 years, the rate currently starts at 3.34%.

The Bank of England’s interest rate is currently at a record low of 0.1%, but an increase is expected in the coming months, which will make the prospect of a 40-year fixed term deal attractive to many homeowners.

Rent Increases Hit 13-Year High In Major Cities

Increased demand for rental properties in major cities across the UK has led to the cost of rent reaching its highest point for 13 years.

Some cities have seen demand double in their central zones, squeezing would-be renters out of town and forcing prices up.

According to leading property portal, Zoopla, average rents across the UK have risen by 6% in the past 12 months, with the South West seeing a 9% increase as demand for properties has continued to outstrip supply.

It’s a similar picture across the UK, with only London failing to see the same kind of increases, although prices have still risen 1.6% in the year to September, but they’re 5% lower than they were pre-pandemic.

Britain’s Home-Selling Hotspots Revealed

Research from leading property website Rightmove has revealed the country’s 6 top hotspots for sellers.

Grays in Essex and Mangotsfield, Bristol share the number one spot, with 84% of the homes listed for sale on the website already sold subject to contract.

Following closely behind, Eastleigh in Hampshire and Redditch in Worcestershire both have 83% of properties sold subject to contract, while Yeovil in Somerset and Hythe in Kent complete the top 6, with 82% of properties sold STC.

Perhaps rather tellingly, none of the top 6 are city-centre locations as an increase in remote working since the pandemic has led to employees having more options when it comes to where they live, and buyers are increasingly looking for more bang for their buck.

Britain’s Happiest Place To Live Revealed

Leading property portal Rightmove has released the results of their annual ‘Happy at Home Index’, which reveals that Hexham is the happiest place to live in Britain.

The market town in Northumberland scored highest overall based on factors like the friendliness of neighbours, its sense of belonging, the quality of local amenities, and the availability of open space.

It’s a return to the top spot for the North East town, which was also number 1 in 2019’s survey.

Richmond upon Thames was the happiest place to live in London for the 7th year in a row. The affluent borough in the southwest of the capital, where average house prices are just under £1.2m, came second overall in the standings.

Harrogate in Yorkshire rounded off the top 3, while 2020’s winner, St Ives in Cornwall came 8th.

TG Sales & Lettings are your local property experts for the Gloucestershire area. Call us on 01452 300822 or email rachel@tgres.co.uk to find out how we can help you buy a new home or sell your property.

Property Market Update: What’s Been Happening In The UK Property Market – October 2021

Welcome to our round-up of some of the property news stories that have caught our eye this past month.

Don’t forget, if you need to know about property in Gloucestershire we’re more than happy to help.

Call us on 01452 300822 or email us at rachel@tgres.co.uk

Prices Remain Strong

The average price of a house is still on the up, according to analysis of the figures by Halifax.

Looking at all the stats, the bank noted that through September the average UK property price is now priced at a record £267,587. What’s more, annual house price inflation is up to 7.4 per cent, from 7.2 per cent.

This is interesting because the Stamp Duty deadlines have passed, and so it is good to see prices still buoyed.

The slight fly in the ointment might be the fact that the Bank of England figures show the number of mortgages approved to finance house purchases fell in August 2021 by one per cent.

Perhaps there is a slight softening of the market overall.

Here in Gloucestershire, we are still selling properties for, or above, the asking price. What’s more, it is only taking days for some properties to sell, and just hours for properties to rent out.

If you’ve been thinking about doing something with your property, now is still a good time.

Overall though, supply is still down.

An ongoing issue in the property market has been further highlighted in a report that looks at key trends in the sector.

Landmark Information Group’s Property Trends Report shows that for a fifth consecutive month, there has been a low number of properties coming to the market. Demand, as they say, is outstripping supply.

There could be a number of reasons for this, but we would say that if you really want to sell, get your property on the market now. There will be interested parties lining up to look around and any one of those could be a potential buyer.

Negotiating Confidence

Around 64 per cent of UK homebuyers and renters say they feel confident negotiating over property prices, reports PropertyWire. But six in 10 admit “the biggest challenge is timing and knowing when to negotiate”.

It’s an interesting one. On the one hand, people say they are confident but actually, they don’t really know when to negotiate.

It’s what one might call a paradox. But, there’s a way through. Use an estate agent who can use their knowledge and expertise to negotiate at the right time.

We can do that for you! We know the Gloucestershire inside out and so are able to take action when we need to.

Going Green Paying Off

Have you installed eco-friendly systems in your home? If you haven’t, you could be missing out.

This has been written about by many, including Property Reporter, which says that property website Rightmove has looked at house prices and Energy Performance Certificates.

It’s been reported that people who have “upgraded their rating from an F to a C, are adding an average of 16% to the price achieved for their home”.

That’s a huge jump, but before you do anything, have a look at the costs involved and the efficiencies made. You’ve got to make sure the figures work for you. If you need any advice on this, give us a call on 01452 300822.

TG Sales & Lettings are your local property experts for the Gloucestershire area. Call us on 01452 300822 or email rachel@tgres.co.uk to find out how we can help you buy a new home or sell your property.

Property Market Update: What’s Been Happening In The UK Property Market – September 2021

The UK property market appears to be stabilising after a frantic 15 months, and the stamp duty holiday is finally coming to an end this month.

Read on to find out more, with some of September’s key headlines:

Stamp Duty Holiday To End

The tax holiday on stamp duty will finally draw to a close at the end of September in England and Northern Ireland after 15 months.

The scheme was introduced by Chancellor Rishi Sunak in July 2020 to stimulate the housing market following the first national lockdown and is widely considered to have been a great success.

House prices have rocketed, and demand has soared thanks to the tax break, which meant savings of up to £15,000 for buyers.

Initially, the holiday allowed buyers to avoid stamp duty on properties up to £500,000. This was then lowered to £250,000 earlier this year, and from 1st October it will be axed completely, with stamp duty payable on all properties over £125,000 as the UK economy continues to bounce back post-pandemic.

Rents Outside London Rising At Fastest Rate For 13 Years

Leading property website Zoopla has reported a significant rise in rental prices across the UK, with prices increasing at their highest rate since 2008.

Their data indicates that rental prices have risen by 5% on average in the 12 months to the end of July, meaning renters are forking out an extra £456 a year on average.

The trend doesn’t apply to London though, with average rental prices in the capital actually falling 3.8% as renters moved away from the city during the peak of the pandemic.

Government To Spend £8.6bn on 119,000 Affordable Homes

The UK government has announced a new funding package to help thousands of people get on to the property ladder.

Approximately 119,000 new homes are to be built, with 57,000 available to buy, and just under 30,000 available for social rent.

The scheme has been confirmed in response to the growing trend of demand outstripping supply, which has pushed prices up to unaffordable levels for many would-be buyers, as the government looks to redress the balance.

Top 5 Hotspots For Sellers Revealed

A study by leading property website Rightmove has revealed the top five property hotspots for sellers.

With demand for homes far outweighing supply, some towns across the UK have become hotspots, with more buyers on the market than at any time in the past 10 years.

Newmarket in Suffolk tops the hotspot list. The market town that’s synonymous with horse racing has seen the number of homes available for sale drop by 49% in the past year, while the number of sales being agreed has gone up 79%. As a result, asking prices have seen a 9% increase since 2019, with average prices now sitting at £320,000.

It’s a similar story in the Hertfordshire town of Berkhamsted. The commuter town has seen a 57% drop in the number of properties for sale, with a 59% increase in properties sold. Similarly, prices have increased by 9% since 2019, with the average property now costing a shade over £694,000.

The rest of the top five is completed by Witney in Oxfordshire, High Wycombe in Buckinghamshire, and St Ives in Cambridgeshire.

Perhaps tellingly, all five hotspots are peaceful, countryside locations away from the city centres.

Pet-Friendly Rental Homes Increase In Demand

A report from national property portal Rightmove has revealed a huge increase in demand for rental properties that accept pets.

It’s estimated that over a third of UK households have become pet owners since the first lockdown in March 2020, as furloughed employees and those who are new to working from home picked up pets to keep them company while spending more time indoors.

As a result, demand for pet-friendly rental properties has increased by a whopping 120%, with ‘pet-friendly’ and ‘pets allowed’ being the top searches for renters.

And in a sign of the changing demands of renters, and especially those with four-legged friends to consider, the next two most popular searches are for balconies and gardens, where demand is up 70% and 39% respectively.

Best Value Homes Revealed

Property portal Zoopla has revealed the findings of a study that shows where buyers can get the most floor space for their money, and it makes for very interesting reading.

Unsurprisingly, London is the least budget-friendly, with homes costing £562 per square foot on average, in stark contrast to the North East, which is the cheapest region at £157 per square foot.

In terms of towns, Burnley is the best value place in the UK at £123 per square foot, however, perhaps the most surprising finding in the report is the cost in Kensington and Chelsea, West London. The average cost there is £1,491 per square foot, which means the floor space required for a double bed would set you back an astronomical £46,550!

For more property 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.

Property Market Update: What’s Been Happening In The UK Property Market August 2021

The UK’s property boom appears to be coming to an end following the winding down of the stamp duty holiday, and the number of properties currently up for sale has fallen to a new low.

Read on to find out more, with some of August’s key headlines:

UK House Sales Fall Dramatically In July

The figures are now in and house sales tumbled by a whopping 62% in July, as thousands of buyers rushed to complete their purchases before the stamp duty holiday ended on 30th June.

A record 213,370 homes were sold in June, compared with 82,110 in July, as buyers looked to take advantage of a potential £15,000 saving.

Although the stamp duty holiday remains in place until the end of September, the threshold has been lowered significantly, with a maximum saving of £2,500 now available to buyers.

The scheme was introduced by Chancellor Rish Sunak to stimulate the housing market at the height of the Coronavirus pandemic, and it’s been largely hailed as a success, with some areas of the country seeing record price rises as demand for new homes soared.

Demand for new houses is predicted to remain strong, however, the picture will become clearer over the last few months of the year, with the stamp duty holiday and the furlough scheme for employees coming to a close at the end of September.

Housing Shortage Creating a Seller’s Market

The number of homes on the market has fallen to its lowest level in more than 6 years, and property experts are forecasting that this will remain the case well into the new year.

The stamp duty holiday led to 1 in 20 homes changing hands over the past year, and the number of buyers continues to far outweigh the number of homes for sale.

This is particularly good news for sellers, with the buying frenzy leading to bidding wars between buyers, especially on 3 and 4 bedroom family homes, as the shift in working patterns over the past 18 months has led to buyers looking for more space.

Stamp Duty Holiday ‘Wasteful’ According To Think Tank

While the Chancellor’s stamp duty holiday has largely been heralded as a success that has kept the housing market afloat, a leading think tank has concluded that it’s actually been ‘wasteful’ by the government.

The report published by the Resolution Foundation claims that buyer demand, and not the stamp duty holiday has been the driving force behind the surge in house prices this year, fuelled by low interest rates and a shift in circumstances, with many buyers now working from home regularly, and looking for houses with more space.

The report goes on to say that the government’s stamp duty holiday has in fact cost them around £4.4bn in lost taxes, and has therefore been ‘wasteful’, given that they believe price rises would have occurred anyway due to increased buyer demand.

Winchester Least Affordable UK City To Buy a Home

A report by Halifax has revealed that Winchester is now the UK’s least affordable city for buyers, overtaking Oxford in the annual survey.

Homes in the Hampshire commuter city cost 14 times the average earnings for buyers, with the average asking price for a house currently standing at £630,000.

Oxford isn’t too far behind in the affordability stakes. While the average asking price is lower at £487,000, average earnings are also lower, meaning that houses cost 12.4 times the average earnings for buyers.
Londonderry in Northern Ireland is the most affordable city for a third consecutive year, with homes costing 4.7 times the average earnings for buyers.

What You Can Buy For The Average Asking Price In Every Region

A recent study by leading property website Rightmove has revealed what buyers can get for the average asking price in each region.

The national average is currently £337,371, with London unsurprisingly being the highest-priced region. In fact, the difference between the capital and the lowest price region – the North East, is an enormous £470,000.

The average asking price in the capital is currently £635,000, which according to the report, will get you a three-bedroom Edwardian terraced house in West Ealing.

Meanwhile, for the North East’s average asking price of £165,000, you can purchase a modern, three-bedroom semi-detached house in Sunderland.

The largest house relative to its asking price is in Yorkshire, where a five-bedroom, three-storey end-of-terrace cottage in Huddersfield can be snapped up for just over £210,000.

For more property 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.

Property Market Update: What’s Been Happening In The UK Property Market July 2021

Property Market Update: What’s Been Happening In The UK Property Market July 2021

The Gloucestershire property market is continuing to enjoy a boom, with prices also reaching record highs nationwide. With demand far outweighing supply, many buyers are increasingly paying more to secure their dream properties.
Read on to find out more, with some of July’s key headlines across the UK property market:

UK Prices Reach Record High In Buying Frenzy

The average asking price of a UK home has reached a new high according to the property website Rightmove.

Figures that are due to be released shortly will show a new peak, surpassing the previous record that was set back in May.
Rightmove also confirmed that the first six months of 2021 have been their busiest since 2000 as buyers rushed to complete their purchases before the phasing out of the stamp duty holiday.

The pricing boom has partly been caused by a shortfall in properties on the market. Rightmove confirmed that 140,000 more sales were agreed in the first half of the year than the long term average, however, there were 85,000 fewer new listings, leading to a shortfall of 225,000 properties, which has put sellers in the driving seat when it comes to negotiating as demand for properties continues to outweigh supply.

Stamp Duty Holiday Winds Down

The government’s stamp duty holiday is now winding down.
The scheme, which was introduced to stimulate the housing market during the Coronavirus pandemic has been an overwhelming success, with savings of up to £15,000 for some buyers.

That saving has now ended, however, buyers can still save up to £2,500 on stamp duty if they complete before the 30th September.
And the housing market is expected to remain strong, despite the ending of the stamp duty holiday.

Biggest Rent Rises In Coastal And Commuter Towns

Property website Rightmove has announced the towns and cities with the highest rent increases in the past year with coastal and commuter towns seeing the biggest jump.

Rochdale, Farnham and Folkestone have all seen average rents increase by more than 25% as tenants look for more space away from the major cities.
However, the recent easing of Covid restrictions has also seen some of the UK’s major cities begin to make a comeback, with renters looking to move back to city life.

Prices have risen 6.8% in Nottingham, and 3.8% in Liverpool compared to a year ago, however, in London and Edinburgh, rents are still lower than 12 months ago, at 6.8% and 4% respectively.

Self-Employed and Furloughed Workers Refused Mortgages Over Covid Grants

Self-employed people who have received government grants during the pandemic are being refused mortgages by many high street banks.

NatWest and the Royal Bank of Scotland have confirmed they’re not accepting applications from anyone who applied for a self-employment income support grant after 14th July 2020, while employed people who have been on furlough are also not having their applications accepted by many major lenders.

Self-employed workers are also being asked to come up with a higher deposit by some of the major high street banks. Metro Bank has confirmed that a deposit of at least 20% is required, while Santander wants a minimum of 25% before lending to self-employed workers.

It’s not all doom and gloom though as interest rates remain low!

The North West Continues To Lead The Housing Boom

Prices in the North West of England have risen by more than 15% over the past year, making it the area that’s seen the biggest increase across the UK.
Wales and Scotland aren’t far behind, having seen 10%+ increases too, but London has seen the smallest rise in prices, at an average of 5.2%, as buyers have increasingly looked to move away from the city to find more affordable properties with additional space.

Some Homebuyers Still Face Lengthy Search Delays

Homebuyers in some areas are still facing lengthy delays for council land searches. Increased demand has left some buyers facing an average wait time of 55 days for searches to be completed when the target is 10 days. Conveyancers and local councils are playing catch-up after the stamp duty holiday rush.
If you are considering buying or selling, TG Sales & Lettings are your local property experts for the Gloucestershire area. Call us on 01452 300822 or email rachel@tgres.co.uk to chat with a member of our friendly and experienced team.

Property Market Update: What’s Been Happening In The UK Property Market June 2021

Phew! It’s been a crazy busy one for us and indeed most agents throughout the UK. The UK property market is continuing to enjoy a boom, with prices still rising in most areas, although with the first stamp duty deadline looming, prices may begin to plateau slightly. Meanwhile though, this has led to record house prices and a skills shortage in the construction industry.

Read on to find out more, with some of June’s key headlines:

Half-Price Homes Scheme Launched

First-time buyers could soon be benefiting from a 30%-50% discount on a home under a new government scheme.

The First Homes initiative is being aimed at local and key workers, including nurses, teachers and supermarket staff, and it will help them to get on the property ladder with a minimum discount of 30% on new homes that are part of the scheme.

The same discount would then be passed on to future buyers in order to keep the homes available to members of the local community at below market rate.

The homes will also be available with just a 5% deposit, as major high street lenders such as Nationwide and Halifax have agreed to offer 95% mortgages on properties purchased under the scheme.

The scheme launched in the Bolsover district of Derbyshire in early June, with further sites to be announced in the coming weeks, and an additional 1500 homes joining the scheme this autumn.

The government has also pledged to add a further 10,000 properties to the scheme every year as part of a major initiative to provide affordable homes to locals.

Click here to find out more about the First Homes scheme.

Average House Prices Reach Record High

The average selling price of a UK home reached a record high of £261,743 in May, and it’s predicted to continue rising according to one of Britain’s biggest mortgage lenders.

The report from Halifax says that the average house price has increased by £22,000 since May 2020 – that’s an annual increase of 9.5%.

This follows similar findings from Nationwide, which reported an increase of 10.9% across the same period.

And with the stamp duty holiday still in place, albeit on a reduced rate, until October, along with the traditionally busy summer period, there could well be further increases to come.

Over 50% Of Homeowners Live In Homes That Fail To Meet Their Needs

A recent survey by property listings website Zoopla has found that more than half of homeowners are stuck in properties which don’t meet their needs.

Most of those quizzed pointed to a lack of space either in the home, or outdoors, while over 25% said they live in an area that they don’t want to be in.

The study of 2,400 homeowners also found that the average person required a home worth an extra £125,000 in order to be suitable for their needs.

It was also revealed that people typically stay in their home for more than four years after realising it’s not right for them.

The coronavirus pandemic has led to many homeowners reassessing where they live, with extra outdoor space and office space being two of the key things people are now looking for from their next home, as they increasingly spend more time living and working in their properties.

Renting Now Cheaper Than Buying

Research by estate agents Hamptons has found that the cost of renting is now cheaper than buying for the first time since December 2014.

Prior to the coronavirus pandemic, buyers with a 10% deposit would be better off than renters by £102 per month.

By last month however, private tenants are better off by an average of £71 per month compared to homeowners.

Only four areas of the UK currently buck the trend – the North East, North West, Yorkshire and Humber, and Scotland.

The trend of higher rents is not expected to continue in the long-term though, with the gap expected to close towards the end of the year before reverting to normal in 2022 when the housing market is forecast to slow down again following an exceptionally busy few months in 2021.

Increased Demand Leads To Construction Industry Boom

Increased demand for home improvements, driven by the pandemic, has led to a boom in the construction industry.

However, a shortage of tradespeople means thousands of extra workers are required, with a report by the Construction Skills Network concluding that an extra 9,250 workers are needed by 2025, just in Wales alone, in order to meet demand.

It’s a similar picture across the UK as a whole, with construction work set to grow by 4.4% on average until the end of 2025.

If you are considering buying or selling, TG Sales & Lettings are your local property experts for the Gloucestershire area. Call us on 01452 300822 or email rachel@tgres.co.uk to chat with a member of our friendly and experienced team.

 

The Conveyancing Process Explained – A Step by Step Guide for Home Sellers in Gloucestershire

The Conveyancing Process Explained – A Step by Step Guide for Home Sellers in Gloucestershire

Selling a property can be a very confusing and lengthy process but having a good solicitor or conveyancer will help it to run as smoothly and efficiently as possible.

Here is an easy step by step guide to the whole conveyancing process.

Find a Conveyancer

The conveyancing process formally starts when you’ve accepted an offer on the property.

However, it’s recommended that you have a conveyancer in place before accepting an offer so that they can get the process started immediately and avoid delays.

When it comes to choosing a conveyancer, speak to two or three and get some quotes before deciding who to go with. Speak with our team at TG Sales & Lettings as we will be able to recommend too. Alternatively, if you have friends or family who have recently moved, find out who they used and if they were happy with them.

Don’t just go for the cheapest option, it could cause major issues further down the line if they cut corners!

Sign the Conveyancer’s Letter of Engagement and Verify Your Identity

Once you’ve chosen a conveyancer and discussed the fees involved, you’ll need to sign their letter of engagement. It’s only at this point that you commit to using their services. You will also need to verify your identity and address in the form of a passport or driving licence and supply a mortgage statement or utility bill for example.

Complete Questionnaires

Your conveyancer will send you some forms to complete, including a Property Information form and a Fittings & Contents form.

It’s vital that you complete these honestly, as failure to do so could lead to delays later in the process.

The Property Information form is where you tell the buyer about any changes that have been made to the property, such as extensions, solar panels or a loft conversion. You’ll also need to provide any supporting documents you have, so if your double glazing is still under warranty or you have paperwork to show that your boiler has been serviced in the last 12 months, you will need to provide copies.

When it comes to fittings and contents, you don’t need to decide what you’re leaving behind at this point, you can confirm later or leave it open to negotiation. Your conveyancer will be able to advise how to complete the form if you get stuck.

Speak to Your Mortgage Provider

Assuming that you have an outstanding mortgage on your property, you will need to contact your mortgage lender and inform them that you’re in the process of selling. They’ll be able to advise you about paying off your outstanding balance when the sale goes through, or porting your mortgage, which essentially means transferring it to your new property.

Draft Contracts

When your conveyancer has received your completed forms, they’ll draw up a draft contract to send to the buyer’s conveyancer.

The contract will outline which fixtures and fittings are to be included, along with copies of all the supporting documents you’ve provided.

It will also give a date for completion, which is typically around two to four weeks after the exchange of contracts.

The draft contract stage is usually the point where most of the negotiations take place, including the final price of the property.

It’s also at this stage where you’ll need to allow for the buyers to have a surveyor come in and inspect the property. Depending on the answers you’ve given in the questionnaire the buyer may also want other professionals to come in and carry out inspections, such as a plumber or electrician.

They may also request that you pay for the costs of any further inspections or repairs, but you will be under no obligation to agree to this. However, it’s at this point that a buyer may try to renegotiate on the final price of the property to take the extra costs into account.

Exchange of Contracts

Once the buyer is satisfied with the condition of your property and a final agreement has been reached on the price, including all fixtures and fittings, your conveyancer will exchange contracts with the buyer’s conveyancer.

Between Exchange and Completion

At this point both you and the buyer are fully committed to the sale of the property. You’ll receive the buyer’s deposit and if either party pulls out, they’ll open themselves up to legal action.

Completion

This is the day on which you hand over the keys to your property. The completion date is usually around two to four weeks after the date of exchange, but you can ask for this to be extended, or in some cases, shortened.

The date of completion is also the date on which you’ll receive the outstanding balance for the property from the buyer.

If you are planning on selling in the Gloucestershire area soon, why not telephone us on 01452 300822. We’ll be happy to advise you and help with your conveyancing needs.

Latest News: What’s Happening in the UK Property Market April 2021

April-2021-Property-Market-Update copy

The past few weeks have seen a very busy property market, especially here in the Gloucestershire area. The weather has certainly changed, and lockdowns have eased, adding to a general feeling of confidence and a theme of “getting on with things”.

But what’s it been like across the country? Well, if you look at the statistics, it’s been very good news across the board. House prices are up, and a lot of transactions are being lodged.

It also seems that conveyancing companies and solicitors have been taking on more staff to cope with demand.

Several stories have caught our attention this month, and so we feature them in this month’s news round up. Don’t forget, if you want to know more about what’s happening locally, just get in touch with us on 01452 300822 or email rachel@tgres.co.uk.

Prices are on the Up

House prices in March had a bit of a resurgence, according to the figures collected by the Halifax in its House Price Index.

The HPI reported that “on a monthly basis, house prices in March were 1.1% higher than in February”, and that “in the latest quarter (January to March) house prices were 0.3% higher than in the preceding three months (October to December)”.

This is good news for the sector, after what some might say was a sluggish start to the year.

Russell Galley, Managing Director, Halifax, said: “Following a relatively subdued start to the year, the housing market enjoyed something of a resurgence during March, with prices up by just over 1% compared to February. This rise – the first since November last year – means the average property is now worth £254,606, a new record high.”

There’s no doubt, if you’re looking to sell your Gloucestershire home, that now will be a good time to get a great price.

Hidden Equity Revealed

Research from Zoopla, the property data website, says that “almost half of UK homeowners are undervaluing their home, with their properties worth nearly £50,000 more than they realised”.

Essentially, Zoopla’s inaugural Hidden Equity Survey looked at how much homes had been sold for or had had their homes valued at, against how much people thought their properties were worth.

The results show that only “three out of 10 people have an accurate idea of how much their home is worth, with 45% undervaluing and a quarter overvaluing their property.”

Transactions not Taking a Holiday

Many outlets are reporting that March was a bumper time for housing transactions. HMRC released figures that showed how UK residential transactions in March 2021 had been impacted by the coronavirus (COVID-19) pandemic, and also the so-called holidays for Stamp Duty, Land and Buildings Transaction Tax and Land Transaction Tax.

Figures show that the “provisional seasonally adjusted estimate of UK residential transactions in March 2021 is 190,980”. This is double the number of transactions in March 2020 and 32.2% higher than February 2021.

Additionally, the “provisional seasonally adjusted estimate of UK non-residential transactions in March 2021 is 12,530”. This is 53.0% higher than March 2020 and 24.5% higher than February 2021.

These really do show that the property market has been hugely impacted by the holidays and means more people than ever are buying homes.

Location for Renting Divides the Age Groups

This is an interesting one that we have seen reported and it’s based on a Deposit Protection Service (DPS) survey of tenants who moved in the six months up to January 2021.

The results show that when you look at who is moving where, older people are more likely to be heading to rent in the countryside while younger people are moving to the towns.

Matt Trevett, Managing Director at The DPS said: “The lifting of Government restrictions on house moves following the first 2020 lockdown led to significant shifts across renting demographics as respondents reassessed their needs during the second half of the year. There seems to be a much stronger demand among younger tenants for properties in towns rather than cities and rural locations, which we believe was partly provoked by more widespread working-from-home policies.”

If you would like to know more about sales or lettings in the Gloucestershire area, call us on 01452 300822.

 

 

Latest News: What’s Happening in the UK Property Market March 2021

Once again, it continues to be a busy time in the property sector. The property market is inextricably linked to wider economic issues, so it’s no surprise that government decisions and the pandemic will affect what’s happening locally.

As far as we are concerned, we continue to be busy and we’re still seeing lots of interest in the Gloucestershire area.

At TG Sales & Lettings, we always keep up to date with the property market, so here’s a helpful roundup of some of the property market news over the past couple of weeks.

Don’t forget, if you want to know more about the local market in particular, drop an email over to us at rachel@tgres.co.uk.

It’s A Moving Business

We often talk about property – which is obvious since it’s our line of business – but we thought we’d start this month’s news update with talk from the removals industry.

Today’s Conveyancer recently ran an interview with a couple of businesses in the removals sector which interestingly stated that for one particular company, stats showed “registrations for their removal services in August 2020 didn’t hit the same peaks as they had done in 2019. However, their data showing the first couple of months of 2021 have shown that demand for the services is indeed still at an all-time high.”

This is good news for the sector and correlates with the market we are seeing, which has faced some uncertainty over recent months.

Market Dips, But Prices Stable

The Halifax House Price Index shows that prices in February 2021 were 5.2 per cent higher than the same month a year earlier. The bank says that the market dipped slightly in February but prices remained stable, with the average property price being £251,697.

Russell Galley, Managing Director, Halifax, is quoted as saying: “In the longer-term, the performance of the housing market remains inextricably linked to the health of the wider economy. The pace and extent of recovery are still highly uncertain, and much will depend on the ongoing success of the UK’s vaccination roll out.”

We agree that the market is linked to the economic situation, but at the moment, it’s a buoyant market in Gloucestershire.

Stamp Duty Holiday Extension Welcomed

Perhaps one of the most eagerly-anticipated news items of March was the extension of the temporary stamp duty holiday (in England and Northern Ireland), which now runs until the end of June.

The announcement came as a relief to many homebuyers, especially those mid-transaction, and there is little doubt that the holiday gave the market the shot it needed. Indeed, Rightmove’s property data expert Tim Bannister said that the extension “should give tens of thousands of home-movers the chance to complete before the new deadline”.

Echoing these thoughts was Zoopla, the property portal, which said that buyer demand soared, but warned that supply remained tight, thus pushing prices upwards.

Eviction Ban Extended

One for the landlords here, as many news outlets reported, the ban on tenant evictions has been extended. Zoopla says that under the ban, “bailiff-enforced evictions will not be allowed except in the most serious circumstances, such as cases of fraud or domestic abuse”.

Additionally, “the requirement for landlords to give their tenants a six-month notice period before they can evict them has also been extended until the end of May”.

Good news for tenants, but for landlords who have issues with a tenant, it may not be so welcome. If you need help managing your property portfolio, we’re happy to assist. Just get in touch and we’ll have a chat about what we can do to help alleviate the stress.

Key Info To Be Shared Earlier?

This is an interesting one, reported on by Property Wire. The Law Society and its partners are looking at making “key information for home buyers and sellers available at a much earlier stage in the conveyancing process”.

If the pilot currently being rolled out proves to be successful, it means information normally sourced after conveyancers have been instructed will be available earlier in the process via the TA6 form. This is typically information relating to the property to be purchased, for example, parking arrangements, Japanese knotweed and flooding risks.

This could definitely change how things are done and makes a certain amount of sense, informing a potential buyer of the information they need to make an informed decision .

We’ll keep you updated as this progresses.

In the meantime, if you need help buying or selling, in Gloucestershire then please get in touch on 01452 300822 or email us at rachel@tgres.co.uk.

We’re here to help you get moving.

 

Rishi Rubber Stamps Homes Duty Holiday Extension!

It’s happened – after lots of rumours, and arguments for and against the continuation of the Stamp Duty Holiday in England and Northern Ireland, Chancellor Rishi Sunak yesterday announced that the Stamp Duty Holiday will be extended until the end of June… and then there will be a further extension to September with different terms.

We firmly believe the news from this week’s budget is great for homebuyers in Gloucestershire who may have been concerned that their transactions would not complete in time to take advantage of the savings – and of course, it also means that some pressure will be lifted on conveyancers, surveyors and lenders.

The original Stamp Duty Holiday in July 2020 was a shot in the arm for the property market with homebuyers positively flocking to take advantage of it.

It was a major boost to the whole market and now this further extension and also the introduction of the new mortgage guarantee scheme will further boost the property sector.

Stamp Duty Holiday Extended

Stamp Duty is a tax on property, with certain amounts needing to be paid dependent on the price of a property. Back in July last year, Mr Sunak told homebuyers that they no longer needed to pay it on the purchase of a main home up to £500,000.

This was fantastic news and boosted the market across the UK – something that was very much needed during these uncertain times.

As the budget approached, there has been much speculation and even petitions calling on the Stamp Duty Holiday to be extended – and finally it has been, until June 30, 2021.

And there’s more!

After June, the price point at which you need to pay Stamp Duty will be £250,000 (originally it was £125,000). After that, from October 1, it’s back to normal and down to £125,000.
This should reduce worries about whether purchases agreed will miss the original deadline for the nil-rate tax.

We believe that Stamp Duty should be due for a more comprehensive overhaul long-term, so expect this to remain in the news over the coming months! Meanwhile, if you’re thinking of selling your property in Gloucestershire, there’s still time to get moving.

Mortgage Guarantee Scheme from April

In addition to the headline-grabbing news about Stamp Duty, Chancellor Rishi Sunak also announced that the Government would guarantee 95 per cent mortgages for property purchases up to £600,000.

This is stellar news because lenders should now have the confidence to lend as the Government will back portions of the mortgages. If you are a first-time buyer wanting to get on to the property ladder, it means you do not have to save quite as much money for a deposit.

This is excellent news for first-time buyers, who want to get on the property ladder and for existing homeowners who want to re-mortgage to release equity or to trade-up.
Give our office a call on 01452 300822 or email rachel@tgres.co.uk if you are considering moving in the Gloucestershire area.