Lettings Market Updates & Property Advice!

Welcome to the July edition of the Greenstone newsletter.

We start this month by exploring is it still location, location, location? With record numbers paying over the asking price to secure their dream property.

With asking prices continuing to climb, we take a look at several key reasons as to what is fuelling the increase.

Further into our newsletter, find out more about how you can buy to become a buy-to-let landlord, before we share some of our post-pandemic predictions for the property market.

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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Is it still location, location, location?

Faced with the prospect of a lockdown-free summer, buyers are anxious to move quickly, resulting in record numbers paying over asking price to secure their dream property.

With leading experts predicting that the house buying frenzy is here to stay, is location still as key as it used to be for buyers?

In the space of just 18 months, we've seen homebuyers rush to the countryside and back to cities again, as they've swapped lifestyles and jobs to better suit their own needs post-lockdown.

However, while requirements have altered dramatically for some, the popularity of online searches for the perfect location shows that this remains high on the list of buyer priorities.

So, what stands out as the perfect place for today's buyers?

- Access to areas of green, open space or gardens has become an immediate priority for many homebuyers.

- Now lockdown is coming to an end, people want to be close to cafes, restaurants, leisure amenities and shops once more to make the most of their freedom.

- Being close to the office is also becoming important again, as people adopt a hybrid style of working. This has also brought demand for a suitable working space at home, as well as a fast and reliable broadband connection.

- Being in a good school catchment will always be a priority for families.

- Buyers are doing their research into future developments in the area, like new schools, hospitals, shopping facilities or public transport links, as they can dramatically affect future house prices.

Location is a key factor in driving up demand.

If you’re looking to find the perfect location or sell your property, get in touch today.

Post-pandemic predictions for the property market

After 18 months of uncertainty, the UK property market has seen some incredible highs and lows, from the sector closing and reopening last spring, to the impact of the stamp duty holiday on residential transaction levels.

For those looking to buy or sell in 2021, here are the top projections on what will continue to shape activity levels in the coming months.

House prices at a record high

Initially propelled by the stamp duty holiday, house prices have risen by 10.2% in the year to March 2021, with vaccine optimism now fuelling high demand levels.*

With a tapered end this September, homeowners can still save £2,500 on the first £250,000 of a property due to the stamp duty holiday, meaning that sales will continue to push up prices this summer.

If you haven't had a recent valuation of your home, talk to us today to gauge its current value.

The long-awaited return of overseas property investors

Travel has been made all-but-impossible for most travellers.

However, with vaccine programs being rolled out in other countries as well as the UK, we should soon see the return of overseas buyers looking for their next investment opportunities.

This will be key to help the market fully recover from the events of 2020, particularly for the construction sector.

Country locations increase in popularity

Remote working became the norm for most of the country's workforce in 2020, which gave people the freedom to move further afield.

As outdoor space went up in our estimations, the need for a perfect commute distance became less important, leading to more buyer activity as homeowners and tenants found themselves restless with their current accommodation.

More space for remote workers

For those whose job will continue to operate remotely, a home office or designated workspace is essential.

Larger properties are in short supply, making it the ideal time for homeowners to sell up.

Commercial spaces transformed into residential properties

Commercial spaces are being left empty, as many people are now opting to work from home, where able.

This means that many offices have closed permanently, leading the owners to convert them back into residential properties.

Overall, this could have a massive impact on the market.

Do you want to know your options buying or selling this summer? We'd like to offer you a consultation, visit our website to learn more.

*ONS

What’s driving property prices?

Asking prices continue to climb, with several key reasons to explain why this is happening after the emergence of a global pandemic.

A record number of people are looking to move

If you cast your mind back to a pre-pandemic time, the property market was faced with extraordinary pent-up demand due to Brexit concerns, as buyers and sellers put their plans on hold.

Before this pent-up demand could be fully alleviated, COVID-19 made its way across the globe in spring 2020, shutting down the property market along with most other commercial sectors.

The government were quick to launch schemes and support to encourage a return of activity, with tremendous success last summer, mainly driven by the extended stamp duty holiday.

Following all of these delays, demand for homes continues to dominate market headlines.

Over 180,000 properties were listed on Rightmove in the last month, with homes selling above asking price doubled from previous figures.

Stamp duty savings

Ending on June 30th, the stamp duty holiday caused a market rush, which meant that asking prices rose at an incredible rate.

Having extended the initial savings period once already, the government introduced a tapered end to the SDLT holiday, taking us up to September 2021 with £2,500 available on the first £250,000 of a property.

Record low interest rates

With interest rates low, more people have been enticed to upsize to bigger, more expensive homes.

If you're looking to take advantage of better rates, we'd recommend speaking to a mortgage professional about your options.

Looking to sell? Book a valuation today.

Buying to become a short-let landlord

With a lack of certainty on travel restrictions, many Brits are planning to vacation closer to home this summer, giving investors the opportunity to break into the short-let market.

Where should you start?

Lasting anywhere from one week to six months, short-term rentals can be a great investment choice.

Before deciding where to invest, you first need to think about the purpose of your rental, for example, are there any cultural events, attractions or destinations that could prove in-demand and help you to secure higher and more consistent returns?

Location is everything within the property sector.

Opting for somewhere with great transport links or nearby to an airport could give your accommodation an instant USP that increases its rental value per night or week.

The next step would be to determine how involved in the management side of things you want to be.

Short-term lets require more work but give you greater flexibility.

The key consideration you need to make is how to avoid extended void periods where the property is vacant.

If you're looking to be highly involved in your lettings responsibilities, you might find that marketing your property across a multitude of channels helps you to build reviews and a trusted reputation, whereas you might find it beneficial to consult a letting agency if those tasks become too much.

To browse our properties and find your next investment, visit our website.