Lettings Market Updates & Property Advice!

Welcome to the November edition of the Greenstone newsletter.

Following the recent annoucement from the Prime Minister regarding another lockdown for England, we want to reassure that the housing market will remain open during this period.

First up this month we explore why this has been the busiest ever autumn with buyers, prices and supply all still rising. Next up we provide some top tips for landlords on how to protect your investments and why over-pricing your property could be a problem.

We finally look at the impact COVID-19 has had on landlords in the buy-to-let market and how the latest developments are effecting them.

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

Busiest ever autumn? Buyers, prices and supply all up and rising

Buyers up. Prices up. Supply up.

An astounding number of homeowners and movers are progressing with their sale right now, with 140,000 more buyers in the process of completing when compared to this time last year.

Since the end of the country's spring lockdown, we've seen record levels for properties reaching 'sales agreed' in the UK, culminating in there being 50% more homes going through the system as buyers rush to meet the stamp duty deadline.

Zoopla estimates that there are currently over 418,000 sales in the pipeline awaiting completion, with an overall value that's over £112 billion.

What are the key facts and figures behind all of this market activity?

- Sales agreed hit an annual high back in August, showing a 62% year-on-year uplift.

- There has only been a slight change in pace, as sales agreed were running at a 53% year-on-year uplift this month in comparison to October 2019.

- Regionally, sales agreed year-to-date are up the most in the South East by 15%, followed by London at 12% and the East of England with 11%.

With the deadline for stamp duty savings looming, what can you do to increase your chances of completing in time?*

To avoid any disappointment, make sure you can do your bit to help move the process along, follow these tips:

Acquire a reliable solicitor

Over lockdown, the housing market will remain open, including for agents, solicitors and conveyancers.

Having gone through this once before, these representatives should be fully prepared to provide a seamless experience whether from home or the office.

Meaning once an offer's been accepted, you can move to the next stage without any unnecessary hold-ups.

Identify issues early on

A conveyancer will identify any problems and will offer solutions.

Obtaining the relevant information and agreeing a positive way forward will take time. If you know your issues early on, try and get them sorted as soon as possible and keep your solicitor updated.

Manage the chain

If you are in a chain, issues may arise that are beyond your control.

It is important you understand your dependencies. Talk to your seller, buyer and their agents regularly, monitoring what is happening with any related transactions and making sure you're all working towards the same target; that being, the same completion day.

Good communication will keep things on track and avoid any delays along the way. Talk to us today for more information.

*Stamp duty holiday ends March 2021.

Top tips for landlords on protecting your investment

Right now, interest from tenants is rapidly growing across the country, with many deciding to delay buying or coming to the realisation that they need to find a rental with more space.

At the same time, we're also seeing a lot of uncertainty around the UK's COVID-19 response, with the implementation of the second country-wide lockdown just weeks after the three-tier system was introduced.

This has led to an understandably confusing period for landlords and tenants alike.

However, as your leading lettings agent, we wanted to provide you with some relevant tips on protecting your property investments for the foreseeable future.

Communicate with your existing tenants

Faced with some key changes on eviction notice periods and the likelihood that evictions altogether will be off-limits for months, it's important to maintain a healthy relationship with your tenants.

Since September, void periods have risen from 19 days to 23 days, with all regions reporting an increase over this period.*

Now more than ever, it's crucial to avoid conflicts, where possible, with rent arrear and possession cases likely to see further delays.

During this time, we want to extend our support to landlords in need of guidance or looking for someone to act as a mediator when establishing rent repayment schemes with tenants, visit our website to learn more.

Have the right cover

If your tenants are unable to cover the rent, obtaining a rent insurance policy will provide you with peace of mind and protect your rental income.

Due to the increased risk everyone is facing now, you will need to demonstrate your referencing is vigorous when applying, and you may even experience difficulty finding the right cover.

Point your tenants towards available financial support

If you have renters that are struggling to pay their bills, make them aware of the financial help that is available to them.

Guide them towards organisations and experts who can help them budget, access aid and benefits.

Adapt your offering for the new normal

Having an outdoor area has now shot to the top of tenants' priority lists. Any property with a garden, balcony, roof terrace or proximity to a park should manage to do well after this year.

In the course of the last few months, there's also been a surge in pet ownership, especially for households where tenants are living alone.

If you're willing to be flexible, you should consider promoting this fact, as supply for pet-friendly accommodation is relatively low and you'll stand out in the market.

For more guidance or information on our lettings packages, please go to our website.

*Source: Goodlord

Why over-pricing your property could be a problem

Rightmove’s latest asking price index has revealed the extraordinary market conditions we are now experiencing.

When looking at the average price of a property coming to the market, it had increased by 1.1% in the past month, to an all-time national record of £323,530.

This is 5.5% higher than a year ago, making it the highest annual growth rate for over four years – equivalent to over £16,000.

However, the portal has now warned some sellers are expecting too much.

Momentum caused by pent-up and new demand has caused new records in several key metrics, leading Rightmove to revise their forecast for annual growth to around seven per cent.

“The forecasting rulebook has been rewritten in this extraordinary year, with predictions of a post-lockdown price plunge in quarter three failing to materialise, and Rightmove’s original forecast in December last year of a two per cent annual rise for 2020 being too timid” the portal says in a statement.

Rightmove’s director of property data, Tim Bannister, has stated: “we predict the annual rate of growth will peak by December at around 7% higher than a year ago.”

Despite the effective market closure between March and May this year, 2% more sales have been agreed this year so far than in the same period in 2019.

New records for the property market according to Rightmove

Three new records were recorded for the market, with figures better than ever previously recorded:

- Average sell time is now 50 days, making it 12 days faster than this time last year

- Number of sales from an agent is now set at a new record, now 70% higher than a year ago

- For the first time ever, agents now have more properties marked as sold than available for sale

Why over-pricing your property could be a problem

Researchers have found that asking too much from the offset can only make properties stand out as being of poorer value, putting buyers off.

Over-pricing loses that initial interest as buyers often have reservations about a property that has not sold as quickly as others or have had a price reduction.

In a market where prices are rising fast, a property that is overpriced from the beginning will have a reduced chance of standing out from the competition.

What does this mean for you this November?

Whilst we're seeing market conditions go from strength to strength with positive price increases and heightened activity, it's important not to lose sight of the end goal.

That being, in order to receive an offer and complete in the right timeframe, you need a realistic asking price and achievable expectations.

As leading local agents in your area, we're experienced at pricing properties for current market conditions, giving you the best chance on the market at the most accurate value and as quickly as possible.

What impact has COVID-19 had for landlords?

Since the pandemic hit the UK earlier this year, landlords and tenants have felt the financial strain.

Here's how the latest developments are expected to impact the property market this autumn.

With the government's furlough scheme extended in line with the introduction of the second national lockdown, offering 80% of an employee's salary, it's thought that many will benefit from this respite over November.

However, with the future still largely unknown, it's understandably a stressful time for tenants unable to continue paying their rent and landlords who have seen reductions in their income.

Between March and August this year, ONS estimate that the number of workers on a payroll decreased by a worrying 695,000.

One of the hardest-hit groups is the under-24s, with 156,000 fewer individuals of this age in employment compared to just three months ago.*

Comparatively with homeownership in the UK, recent research has found that 92% of homeowners are confident they could continue to meet their mortgage repayments in the next six months, whereas the same could only be said for 81% of tenants about upcoming rent.

Up to 12 million Brits will struggle with rent and bill payments in light of COVID-19 and its continuing economic fallout.**

Whilst the government have extended the mortgage holiday for struggling homeowners and landlords by a further six months, it's advised to speak with your lender directly and to only consider this as a last resort.

During this holiday, interest will still accrue, which could add a significant amount for you to pay off after it has run its course.

If you need professional advice on any of the contents covered here, please contact our team.

*Source: BBC News

**Source: The Financial Conduct Authority