Your monthly property update

Will the property market slow down?

The last few years have seen a sharp hike in house prices across the country, but can this rise be sustained? While recent data from the Land Registry shows house prices were up by 12% since April last year, some believe we’re heading towards a slowdown.

So, what’s going on? While the market spiked in 2021 thanks to the well-publicised stamp duty holiday – fuelling sales as buyers rushed to save significant sums of money – it calmed over the winter of 2021 before slowly rising again across the UK.*

However, in May this year, the number of sales returned to levels seen just before the onset of the pandemic. But what has driven this reversal?

The cost of living crisis appears to be playing its part by straining household budgets. Combine this with rising house prices and mortgage interest rates, and you have a recipe for dampening buyers’ spending power.

This doesn’t necessarily mean prices will fall dramatically. Big names across the industry – such as Propertymark and Rightmove – are still reporting a mismatch between demand and supply, which is keeping prices buoyant for now. All in all, experts predict that prices may only increase by between 1–5% over the next year or two.**

What does this mean if you’re planning to sell? The good news for homeowners is that no one expects prices to plunge over the medium to long-term. But if you’re hoping to maximise your sale price, striking while the iron’s hot may pay off.

Our team is ready to provide tailored advice that reflects your unique situation. Contact us today to discuss your options and book a valuation.

*Based on data provided by HMRC (June 2022).

**Predictions provided by Rightmove, Zoopla

How the government intends to help first-time buyers

In a recent speech, Boris Johnson committed to helping first-time buyers overcome the hurdles faced when securing their first property. As it stands now, the biggest issues first-time buyers face are the strict mortgage lending restrictions, the need for a high deposit, and rising house prices.

As part of the speech, Boris Johnson stated that more than 50% of renters could afford a monthly mortgage payment. However, other factors mean that only 6% could immediately access a FTB mortgage.

He said: “First-time buyers are trying to hit a continually moving target. By the time they’ve put aside money to secure their mortgage, prices have risen, and it’s no longer enough.”

“And of course, the global rise in the cost of living is only making life harder for savers. So, we want it to be easier to get a mortgage. Reporting back this Autumn, [the review] will look at how we can give our nation’s aspiring homeowners better access to low-deposit mortgages.”

Are you a first-time buyer looking for property advice? Get in touch today.

*Rightmove

Home insurance guidance for tenants

If you’re planning to rent soon, you might be focusing on the upcoming move, not tackling paperwork. The good news is, you won’t have to factor in building insurance – but you should still protect your belongings from theft, damage, and other hazards.

The easiest way to do this is by taking out an insurance policy designed for tenants. It’ll only cost you £57 a year on average* and will usually cover:

Your personal belongings, furnishings, and appliances
Accidental damage to your TV, computers, and devices
Changing the locks or fitting an alarm if your keys are lost or stolen
Money stolen from your home, including cash and cards

Accommodation if your home is affected by fire or flooding
Legal fees in case of a disagreement between you and your landlord

High-value items such as bikes and portable equipment may also be covered up to a set value, or you can add these items onto your policy for extra peace of mind. In addition, a tenant’s liability insurance can protect your deposit by paying for damage to the landlord’s property and furnishings.

Although there’s currently no legal requirement for renters to take out insurance, your tenancy agreement may stipulate that you should. Either way, the cost of replacing items often far outweighs the small annual fee, especially in the event of fire or flooding.

Many providers even allow you to pay monthly, and you can always shop around on the comparison sites. By insuring your belongings from the start, you’ll know exactly where you stand in the event of a mishap or disaster – just check the fine print first!

We’re always here to advise tenants. We’re always here to advise tenants. We’ll help you find your perfect home, simply get in touch and let us know your requirements.

*Data from the Money Advice Service

How to improve your home's EPC rating

Upgrading your property to become more energy-efficient can make long-term financial sense in terms of reducing bills. But it’s also important if you’re planning to rent out your home in the future. That’s because new legislation means that landlords will only be allowed to let properties with an EPC rating of C or above from 31st December 2025.

Of course, an energy-efficient home will reduce you or your tenants’ carbon footprint – a win for the environment too. If you don’t already have an EPC rating, you can arrange for an accredited energy assessor to calculate your energy usage per square meter.

They’ll consider a range of factors, including your boiler’s efficiency, the type of heating system you use, and the quality of your insulation. The amount of money you’ll need to invest may depend on the condition of your home. For example, while the average UK dwelling is rated D, new builds are 60% more efficient on average than older houses.

If your property has limited insulation, this is a great place to begin. Filling your wall cavities – which only takes a few hours – can reduce heat wastage by 35%, while insulating your loft can prevent a quarter of your heating from leaking through the roof.

Spending extra money now on a modern boiler and installing double or triple glazing can also make a difference to your bills. Cheaper options include sealing off gaps around your doors, windows, and floorboards, and replacing your bulbs with low-energy alternatives.

Worried about financing the improvements? Under the Boiler Upgrade Scheme, you could get £5,000 towards buying and installing an air source heat pump or biomass boiler. The Energy Company Obligation scheme will also pay for new boilers, glazing and insulation if you’re on qualifying benefits, such as Universal Credits.

In case you’re wondering, a high EPC rating can improve the value of your property – whether you’re intending to sell or let.

Whatever your situation, we’re always on hand to offer advice. Contact us today to discuss your EPC or book a valuation.

Revival in the Park

Kent’s biggest 90’s and 00’s festival Revival returns to Mote Park for their biggest ever event, celebrating a whole host of genres, including Pop, House and more!

17 Sept 2022: 13:00 - 22:30

Click here to read Revival in the Park.