What's happening this month?

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. 

 

 

Mortgage agreements for early 2021 at their highest since the financial crisis

 

Mortgage approvals have reached a 14-year high, propelled by last year's property market boom.

 

The Bank of England’s mortgage data from the end of last year shows a 24.2% increase in mortgages agreed compared to the previous year, and at any time since the global financial crisis, with £87.7 billion worth of mortgages agreed.

 

In Q4 2020, mortgage lending reached £76.6 billion, with a year-on-year increase of 4.2%, whilst the share of mortgages with a low loan-to-value was 4.5% down in a year; the lowest since 2007.

 

Considering that the housing market was effectively closed for two months in 2020, it is incredible to see that the year ended with more approvals than the one prior.

 

The value of new mortgage commitments hitting a 14-year high was largely driven by homeowners who looked to move into larger properties and see savings of up to £15,000 from stamp duty tax in the process.

 

This activity has resulted in the annual growth rate for new mortgage commitments almost quadrupling in Q4 2020.

  

April should signal a turning point for first-time buyers, who will now have access to 95% mortgage options once again due to government-guaranteed support.

 

Having been absent until now, it's thought that the return of lower deposit mortgage products will lead to more positive growth for the sector in 2021.

 

As we head into the popular seasons for home selling, with schools and businesses reopening and the vaccine program continuing to take effect, we'd like to help you with your plans this year.

 

To learn your property's value, visit our website.

 

 

 

 

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.

 

 

What you need to know when investing in a buy-to-let property

 

Investing in a buy-to-let property is a dream that many of us will have at one point or another.

 

Property has always been a dependable investment option, with successful landlords able to set up their rentals to run like clockwork whilst benefitting from an additional source of income.

 

Before considering your first step, there are some key considerations to be aware of.

 

 

It won’t happen overnight

 

As much as we would like to say otherwise, having a buy-to-let property doesn’t just happen overnight.

 

Just like starting a new business venture, there are rules and regulations you need to comply with to protect yourself and your property.

 

Whilst some of these components can take time to understand and navigate, lettings agents like ourselves are fully equipped to guide you through all of the requirements.

 

 

Know the area you’re planning to invest in

 

It’s important to do your research on the area before signing on the dotted line, such as speaking to local agents about seasonal trends and rental yield opportunities.

 

Is it a hotspot for rental demand? Are there any attractive amenities, universities or transport links nearby that would appeal to tenants?

 

 

Ensure you can afford a buy-to-let deposit

 

Whilst a standard home can be secured with as little as 5% of the price of the property, a buy-to-let investment is usually much higher.

 

The average deposit is 25% for a buy-to-let mortgage.

 

It's also likely that your income will be evaluated, as you need to be earning at least £25,000 a year for most lenders.

 

 

Think about your target tenant

 

It’s important to put yourself in the shoes of a tenant and consider what they would want from a property.

 

Being a flexible landlord is key to ensure that tenants stay for longer, which is always great news for a landlord as you can minimise on void periods and secure your rental income.

 

When you have your buy-to-let property ready to market, it is a good idea to position your home based on the type of tenant you’re targeting, such as using the right communication methods to reach them.

 

 

For guidance on how to start your buy-to-let journey, get in touch with our experienced team.