Lettings Market Updates & Property Advice!

Welcome to the March edition of the Greenstone newsletter.

First up this month following the recent budget announcement, extending the Stamp Duty Holiday, we look at the fact 750,000 buyers have already seen savings and how what this now means for both buyers and investors. Are you searching for a new property this month? We've put together how you can maximise what you see during a viewing without actually viewing a property.

Further into our newsletter, its good news for first-time buyers as lenders are now allowing smaller deposits to help them get on to the property ladder. Finally we're pleased to say rental growth has picked up for the sixth month in a row, as the demand for properties to rent continues.

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

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Your stamp duty and mortgage holiday questions answered

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750,000 buyers have seen stamp duty savings so far

 

It's been estimated that 600,000 homebuyers agreeing a sale from May 2020 onwards will not pay any stamp duty at all and are set to be saving £5 billion in total – that is an average of £4,660 each, according to Zoopla.

 

Last month, many questioned whether the further 140,500 waiting to complete would be able to do so in time for the March 31st deadline, but in light of the government's March Budget announcement, those concerns are no longer necessary.

 

Not only have the government extended the stamp duty holiday for another three months – taking us to June 30th – but the scheme will also have a staggered ending, with properties worth £250,000 or under eligible for savings of up to £2,500 until 30th September this year.

 

Along with an extended furlough scheme and the re-introduction of government-guaranteed 95% mortgage loans, these initiatives will protect the property market and mean that homeowners, first-time buyers and investors are shielded from a sudden withdrawal of support.

 

Who does this affect?

With the stamp duty only paid on completion, it has not only benefitted those already in the process of buying when this announcement was made but also acted as an incentive for other buyers to move before the original 31st March deadline.

 

This demand and more homes on the market has boosted overall activity levels in the property sector.

 

So, given the extension, it's predicted that we'll see a strong spring and summer for property sales, having already demonstrated above average seasonal averages for the previous winter.

 

 

What can I do to speed up my property transaction?

If you’re in the process of buying a home, there are a number of steps you can take to help make the conveyancing process go as smoothly as possible.

1. Make sure you have all the relevant paperwork to hand.

2. Respond to any additional information as quickly as possible.

3. If you need to sign any documents and return them to your solicitor, deliver them by hand.

4. Communicate regularly with your solicitor and estate agent to keep everything on track. Maybe agree to have weekly updates from everyone involved.

5. Prepare to be flexible. 

 

Research Director from Zoopla – Richard Donnell – commented last month that “demand for housing started 2021 as strongly as last year", going on to say that at the time, there was "limited evidence of new buyers being put off by the proposed ending" of the stamp holiday on the 31st March.

Contact us today for more information or to get started with your next sale or property purchase.

 

 

 

How to maximise what you can see without physically viewing

 

It goes without saying that COVID-19 had a massive ripple effect on the world, and of course, the property market wasn’t left untouched by this.

 

We have seen radical changes within the sector, as agents like ourselves look at ways to adapt and evolve in order to meet new needs from our clients and colleagues.

 

One of the ways we've done that as an industry is to introduce new elements to our offering, substituting face-to-face meetings for online consultations that can be conducted safely.

 

Now, months after we've settled into this new way of doing things, a common question we get asked is ‘how can I maximise non-physical viewings?’

The benefits of non-physical viewings

A perk of non-physical viewings is being able to see the property without having to make unnecessary trips in-person to view a property, which is key in light of the current situation and restrictions.

 

Spending more time looking at online property listings, virtual tours or videos allows you to browse a larger number of homes than it may have been possible to physically view; particularly if you find it difficult to find time outside of work to arrange appointments.

 

So, this already means that you have the opportunity to see more properties in less time and refine the criteria you have by being exposed to more choice.

 

Another key benefit is that by starting your search online, you can quickly gain a feel for the homes that you want to see again, whilst identifying those that aren't suited to your needs.

 

In terms of maximising your time when talking to an agent screen-to-screen, we'd advise asking them about the natural flow of the rooms to help you envision the space more clearly, as well as the standard questions you'd otherwise ask on the seller's reasons for moving, whether there's a chain and the current conditions for the property's boiler and water pressure.

 

As we can appreciate that you'll want to see a select few properties in-person when you've narrowed down your search, there are tips for making in-person viewings right now, such as:

 

- Arranging the viewing by appointment, with only one household in the property to minimise contact

 

- Wearing a mask and using sanitising gel at the start and end of the viewing

 

- Asking any questions outside of the property so that you don't feel rushed to exit and miss anything important

How can we help?

Speak to a member of our dedicated team for any support you may need.

 

 

Good news for first-time buyers as lenders allow smaller deposits

 

Over the last 12 months, first-time buyers have found it more difficult to move forwards with their purchase plans, as low-deposit mortgages became increasingly scarce.

 

Now that lenders have begun to re-introduce their 10% deposits, the current situation is looking up for new homeowners, as the number of available products at 90% loan-to-value ratio rose by 29% in the first two weeks of February.*

 

It is estimated that around £5 billion is currently being held up in the first-time buyer’s market due to the COVID-19 pandemic, as many future homeowners have decided to delay their move until they have greater financial stability and job security.

 

Are you looking to try again with your first property purchase?

Nine in ten 90% mortgages were withdrawn from the market in the wake of the COVID-19 outbreak last spring. 

 

Nearly a year on, first-time buyers have been handed a serious boost, with the majority of lenders now offering low-deposit mortgage deals and reducing the restrictions they put in place on how much of the deposit could be 'gifted' by friends or family members.

Are 95% mortgages likely to come back?

It is likely to be some time before we begin to see the full range of 95% mortgages re-appear back on to the market.

 

To learn more about your prospects as a first-time buyer, please visit our website.

 
*Moneyfacts

Rental growth picks up for the sixth month in a row

 

The rental market has picked up for a consecutive sixth month, suggest sources in the property sector, with reports showing a 4.3% increase in January – which is 0.2% higher than the 4.1% figure in December.*

The South East topped the rental growth market, seeing a 10% increase in rents over the last 12 months.

The lowest rental region in the UK was the North East, with an average rental cost of £539 per month, whilst the highest region being Greater London had an average rent of £1,556; an approximate difference of 288% for the country's capital.**

What are the main reasons for this rental market growth?

Cost is an obvious drive for rental growth as we continue to see house values rise.

 

From 2007 to 2017, the property market saw the average UK house rise in price by just shy of £40,000, which has had a knock-on effect to tenants.

Another possible factor could be that – in the last 12 months – more and more people are becoming tenants due to so called ‘risk factors’, for instance, lengthy 25-year mortgages and not wanting to worry about house depreciation over time.

 

This has been amplified by those who have decided to rent for longer, such as first-time buyers delaying their purchase plans.

Changes in society also play a massive part in the rental market, as households are embracing the ability to move out easier and not being committed to a given property.

How we can help

With a tried and tested method to support landlords, we can help you maximise your property investments and make smart choices with your portfolio.

Contact a member of our team now to explore your options.

 

 

*Letting Agent Today
**Statista