The latest headlines from the property market

The latest headlines from the property market




Residential transactions 23% higher due to stamp duty and vaccine news

 
February saw a total of 147,050 residential transactions according to HMRC, which is a 23% increase from January’s total and a whopping 48.5% more than February 2020.
 
The cause of this surge seems to be as a result of the vaccine roll out, as well as the stamp duty holiday.
 
As transaction numbers increase month-on-month, we're able to see just how strong the market is, having shown tremendous resilience so far during the pandemic.
 
As buyers and sellers were previously rushing to meet the original stamp duty deadline, which should have seen savings end on March 31st, it's anticipated that even more sales will be agreed and records beaten over the next few months.
 
 
Whilst the stamp duty holiday as we know it will be in place until the end of June, offering up to £15,000 worth of savings, there will be homebuyers who benefit long after this date with a phased out easing that sees smaller savings until September. 
 
Due to Brexit and then COVID-19, there have been delays and hesitations in the sector, with a number of us wanting to see a return of 'normality' before proceeding with any plans.
 
If you’re looking to start the buying or selling process in 2021, get in touch with our team today.
 
 



Chain-free property listings boom as sellers opt to rent ahead of their next move

 
Recent data from Rightmove suggests that there has been a sudden increase in the number of chain-free properties listed on the market, due to sellers being more willing to rent before they purchase their next home.
 
21% of available properties on Rightmove are chain-free, an increase from 15% this time last year.
 
This growing trend for chain-free property sales has been seen significantly in London, which has increased from 12% to 21%.
 
Sellers are often hesitant to come to market because they are unable to find somewhere they want to buy, but with record demand and the stamp duty holiday extension to consider, there is a greater sense of urgency across the sector.
 
Tim Bannister, Rightmove’s director of property data, said:
 
“Selling chain-free is perhaps something some owners hadn’t considered as a possibility before now, but with the competitive market and stock shortage we currently have they’re trying to put themselves in a more attractive position when their dream home comes along.”
 
In London, there has been an increase in landlords who are deciding to sell, pushing up the percentage of chain-free properties on the market.
  
Rightmove have also seen a significant increase in the number of buyers searching for ‘no-chain’ or ‘chain-free’ properties in their keyword search function, as buyers rush to make use of the stamp duty savings available until the end of June.
 
In February 2021, the property portal found that the number of buyers searching for these terms was a staggering 72% higher compared to last year.
 
Do you know your property's value? Book a valuation today to learn more. 
 
 



Home improvements to help boost your house price

 
Whatever your budget, there are plenty of ways you can add value to your property before selling this year.
 
For inspiration on where to start, have a look at these home improvement suggestions, ranging from high cost to low:
 
Conservatories or sunrooms – adding a conservatory or sunroom is one of the most cost-effective ways to add more value to your home, with an estimated 6% uplift to the value of your property.
 
Updating your kitchen or bathroom – it is often said that potential buyers will look at the kitchen and bathroom first before they pursue a property.
 
Updating your kitchen or bathroom isn’t always the cheapest home improvement option, but it is one that can certainly boost your value by a significant amount, with an average property value increase of 5.5%.
 
If this home improvement option doesn’t quite suit your budget, but you still think these rooms could do with a refresh, replacing old worktops or cabinet doors is a fail-safe way to improve the overall look.
 
Updating old boilers and central heating – a new boiler or central heating system is a key element to consider if yours hasn’t been updated recently.
 
A dated or inefficient heating system could put potential buyers off, as this will result in more hassle for them after moving in.
 
Fixing a damaged roof – improving the core foundations and features of a property is always a safe bet.
 
A new or fixed roof is essential for both insulation and structural purposes, and – again – will save buyers from having to take on the task themselves.
 
Upgrading the home to be smart and energy-efficient – energy-saving smart home improvements are not only good for the environment but are also a great addition to have to add value to your home.
 
This can be achieved by installing smart lighting, using energy-efficient LED bulbs, followed by upgrading to eco-friendly appliances, adding double glazing and upgrading insulation.
 
Creating a defined sunspot in the garden – a recent survey by Rightmove showed that properties with a south-facing garden could be worth up to £22,000 more than those without.
 
There’s not much you can do to change the orientation of your garden, but if you don’t already have a defined sun-spot, creating a zone for this will help potential buyers picture themselves living there and enjoying the weather and seasons to come.
 
Redecorating – decorating can make a world of difference to your home, whether that’s a fresh coat of paint, updating wallpaper or installing new carpet.
 
It’s also important to remember to stay neutral and avoid any loud colours that could deter potential buyers.
 
Tidying up the front garden – the front garden is the first thing that welcomes people to your home, so it's important to keep your garden up to scratch.
 
  
Before beginning any major project, it’s important to ensure that you are spending your money wisely and understand the cost versus the potential return you will gain.
 
Get in touch with us today to talk about your home improvement plans and get advice on what will make the most difference to your home's value.
 
 
 



Homeownership made possible for 290,000 buyers

 
The Help to Buy scheme was introduced by the government with the aim of helping first-time buyers get onto the property ladder; designed mainly to overcome the barrier of people not being able to save a large enough deposit to qualify them for a mortgage loan.
 
Help to Buy allows buyers to purchase a new build home with just a 5% deposit, it is then topped up by the government with a 20% equity loan that is interest-free for five years.
 
The number of homes bought using the scheme has increased year-on-year, with over 290,000 buyers having benefitted since it first launched.
 
Who has benefited from Help to Buy?
 
First-time buyers
 
Benefiting the most from the government's scheme has been first-time buyers, accounting for 82% of all purchases.
 
The average price of a property bought using the scheme is £279,995, with a typical household income of £53,218.
 
From April 1st, a new scheme has been launched that is only available exclusively to first-time buyers. As a result, regional price caps will be introduced on the value of properties that are purchased using the scheme.
 
These caps range from £186,100 in the North East to £437,600 in the South East and £600,000 in London. Below is a full list of the regional price caps for Help to Buy.
 
 
Region  Help to Buy price cap
North East £186,100
North West £224,400
Yorkshire and the Humber £228,100
East Midlands  £261,900
West Midlands  £255,600
East of England  £407,400
London  £600,000
South East  £437,600
South West  £349,000
 
 
Buyers in London
 
For most of the country, the equity loan is capped at 20% of the property’s value.
 
However, in London, buyers can apply for an equity loan worth up to 40% of their property’s value.
 
 
Homeowners
 
Whilst those who already own a home or have previously done so have also benefited from Help to Buy, these have only accounted for around 18% of all purchases made using the scheme, with the typical home they bought much more expensive compared to first-time buyers.
 
It is important to remember that the Help to Buy scheme must only be used on your main residence and cannot be used to buy a second home or a buy-to-let property.
 
 
For key information on the 2013-2021 and 2021-2023 schemes, we'd advise referring to: gov.uk/government/publications/help-to-buy-equity-loan-buyers-guide
 
To start your property journey with us, please contact our team today.