Lettings Market Updates & Property Advice!

Happy New Year!

Welcome to the January edition of the Greenstone newsletter.

First up this month we take a look at how the UK property market is set to grow by 4% in 2021 following a positive 2020. Thinking about putting your property on the market in 2021? We've got the perfect guide to help you understand your property's value.

Further into our newsletter we provide any landlords and tenants with the latest up to date 'guide to rent' following additions and changes made by the government. Finally, we take a look back on 2020 at the highs and lows during the year that everything changed, 

We hope you enjoy this months edition. We also provide property tips, insights, and updates on our social media channels which you can click to follow at the end of our newsletter. As always, please get in touch if you have any property queries.

Best regards

Lewis Green, Director

Your stamp duty and mortgage holiday questions answered

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UK property market set to grow 4% in 2021

 

As we come into the new year, the housing market is forecast to continue its positive state, according to Rightmove.

 

House prices are set to grow an average of four per cent, despite the stamp duty holiday ending soon.

The market has seen a great increase in demand since the first lockdown, with larger houses proving to be the most popular property type, which is largely attributed to a change in routine and the rapid adoption of remote working across the country.

 

In July, Chancellor Rishi Sunak introduced a stamp duty holiday allowing houses purchased for under £500,000 to benefit from a tax break.

 

Although this scheme is due to end on March 31st, many people within the sector are calling for an extension, so that buyers and investors may continue to benefit from additional support and to speed up economic recovery.

Mortgage lender Halifax recently reported that over the last five months, the house price increase has reached its highest record since 2004. 

 

Seasonal trends suggest that January is a popular time for buyers and sellers. This year, that demand is off the charts, with homeowners rushing to reach completion and see stamp duty savings.

 

Rightmove expect the market to remain resilient despite the pandemic and Brexit.

 

They claim that the uncertainties of COVID-19 and Brexit have been around for long enough to not deter Brits from buying and selling.

 

If you’re looking to buy or sell, get in touch with our local market advisors for more information on what to expect in 2021.

 

 

 

Your guide to understanding your property's value

 

If you are planning to sell or rent your property, then it’s important to get an accurate estimate of how much the property could be worth.

To give you an agent's perspective of what that involves, we've provided some of the key take-away points below.


Market value

Firstly, knowing how much your property is worth is more commonly known as its 'market value', which relates to the price a buyer is willing to pay when considering local and national market conditions.

 

What impacts the value of your property?

The value of your house can be determined by a variety of factors, such as any recent changes to the property or your neighbourhood.

Some of these factors may also include the size, location, amenities, condition and the asking price of similar houses nearby, so it's always beneficial to talk to a local agent with familiarity selling in your area.

The difference between market value and asking price

Valuing your house accurately is one of the most important parts of the process.

 

Bringing your home onto the market with an asking price that is too low could mean you receive offers below market value.

Whereas if the asking price is too high, you may not receive any offers at all, causing time delays and market stagnation as the ideal buyers are put off a home that falls outside of their price bracket.

 

So, whilst it can be tempting to instruct an agent based on who is offering the highest value, the risk of this is that you may need to gradually reduce your price anyway to reflect the property's actual market value.

 

How much could your house really be worth?

The best way to see how much your house is worth is through a combination of tried-and-tested
methods.

 

Over lockdown, it would be advisable to begin by referring to online house price calculators and valuation tools, as these will provide a guide based on Land Registry Data. 

 

However, it's important to bear in mind that for the most accurate and up-to-date valuation, you should organise time with an agent, as an in-person appraisal will guarantee any recent developments to your home are taken into consideration.

If you’re thinking about putting your property on the market, book a valuation with our team today.

 

 

 

The updated 'how to rent' guide for tenants and landlords

 

As a landlord, there are a number of legal requirements to be complied with prior to letting out a property.

One of these is to provide a copy of the Government issued 'How to Rent' checklist to all tenants when entering into and renewing an assured shorthold tenancy, which is the most common type of contractual letting agreement.

The Government has recently released an updated How to Rent guide, which can be found at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/

attachment_data/file/942503/6.6642_MHCLG_How_to_Rent_v5.pdf

The guide is designed to help tenants understand their rights and responsibilities under an assured shorthold tenancy both before the tenancy starts and during the term of the agreement.


What additions or changes have the government made to the guide?

There are some noticeable differences with the latest version, which now provides answers to tenants' frequently asked questions, including the level of deposit and its protection, necessary documentation and length of term.

Another important addition is the reference to a landlord's obligations regarding mandatory electrical testing, and a review of the permitted fees under the Tenant Fees Act, which was introduced in 2019.

The Government's latest guide also sets out the information that must be provided by a landlord to tenants, as well as a summary of what each party must and should do during the tenancy.

Importantly, it gives advice to tenants on what to do if things go wrong, whilst clearly setting out what should happen at the end of the tenancy.


Why is it so important landlords provide this guide to their tenants?

Landlords need to bear in mind that giving tenants the How to Rent guide is a legal requirement.

Without doing this, it hinders your ability to later serve a valid Section 21 notice and regain possession of your property, if required to do so.

This is due to the fact that the How to Rent guide is one of the statutory pre-conditions for serving a Section 21 notice.

We will always ensure on behalf of our landlord clients that their tenants are provided with a copy of this guide and that all other landlord requirements on the grant of an assured shorthold tenancy are complied with.

If you want any further information about the How to Rent guide or landlord and tenant requirements on the grant of an assured shorthold tenancy, please call our lettings team who will be happy to help.

 

 

2020: A year where everything changed

 

As we all make preparations for the year ahead, we've brought you a month-by-month recap of 2020's property market highs and lows.

January – this time last year, we started with an incredible boost to market activity, with the 'Boris bounce' leading to more new listings and sales being agreed following a period of political uncertainty and concern over Brexit in 2019.

 

February – by the second month, news of the pandemic made its way across Europe; even though very few of us could have predicted just how much of an impact it would have at this stage!

 

Meanwhile, the largest ever private real estate transaction took place, with IQ student accommodation being sold for £4.7bn.

March – with the pandemic set to massively impact companies, the government froze business rates for retail, leisure and hospitality tenants.

 

However, the inevitable happened towards the end of the month, as the entirety of the UK were plunged into a complete lockdown.

April – the property market came to a standstill as the sector was forced to close for the foreseeable future.

 

Firms across the country tried to battle the pandemic’s financial effect using the furlough schemes and support available.

 

As a country, we also started embracing the benefits of remote working, developing new skills and spending time on DIY projects around the house.

 

May – in May, the property market could finally return to some degree of normality.

 

This involved the sector reopening, including the resumption of sales and lettings activity to get the country safely moving again.

 

June – unfortunately, June saw the massive real estate company – Intu – enter into administration, putting many of the UK’s shopping centres at risk.

 

We also saw the alert level downgrade from four to three, after a steady decrease in cases.

 

For the property market, we saw a steady and healthy return of pre-pandemic activity; especially for the lettings market with a rental bounce.

 

July – a stamp duty holiday was announced, which would cut the rate to 0% for all properties under £500k until March 2021.

 

The Government also launched a new drive that promised the biggest planning overhaul in decades, including a revamp to permitted development rights.

 

We also saw an extraordinary fundraising effort for the NHS, with 100-year-old Captain Tom Moore raising over £33m, as well as receiving a knighthood from the Queen.

August – prime property showed a remarkable recovery, as it reports the biggest rise in deals compared to other areas since the end of the lockdown.

 

The eat-out-to-help-out scheme went live, providing the hospitality sector with a much-needed boost.

September – as the number of cases rapidly rose, the UK was warned that a second wave of the virus had arrived.

 

As a result of this, the Government imposed new restrictions on the nation.

 

Many were concerned that this would hamper property market recovery, which turned out not to be the case, as sales agreed and tenant enquiries went from strength-to-strength.

October – demand continued to rise, spurred on by the possibility of stamp duty savings.

 

Towards the end of October, Boris Johnson announced that England would be placed in another lockdown.

 

Thankfully, the property market would continue to operate throughout this period, so as to avoid the impact the first lockdown had on the sector.

November – the market remained resilient despite the second lockdown, with house prices increasing by 5.8%.

 

We also saw mortgage approvals reach new record-breaking heights, according to Rightmove, with similar figures seen in 2007.

 

At the end of the month, it was announced that regions in England would be placed in different tiers based on case totals.

December – the last month of 2020 started with great news, with a COVID-19 vaccine being rolled out to those who were most vulnerable first.

 

This news boosted the whole of the economy, including the property market, allowing people to finally start seeing life as back to normal in the future.


If you have any questions, or you are looking to buy or sell in 2021, get in touch with our team.