October Newsletter - Britain's property market continues to defy expectations in Brexit run-up

In this month's edition, we take a look at how the property market is continuing to defy expectations and provide healthy conditions for investment even during the run-up to Brexit.

Elsewhere, we offer our top tips for rejuvenating your kitchen, reports suggest that the UK's mortgage market is seeing sustained growth and finally, we detail the importance behind setting a realistic asking price when selling your property. 

The importance of setting a realistic asking price

 

Recent analysis from comparison site Zoopla has shown the benefits that are reaped when a property is priced correctly rather than over-ambitiously, with overvalued properties taking up to two months longer to sell.

In addition to a longer sale period for properties which are overvalued, the research also found that by dropping the price in order to attract buyers, these properties also achieve an average asking price of £12,000 less than their more accurately valued counterparts.

“Our research highlights the importance of accurate pricing and reveals the areas where there is the healthiest alignment between a seller’s expectations and what a buyer is willing to pay for a property,” said Charlie Bryant, managing director of Zoopla.

“When a home is valued too ambitiously at the start, or simply overpriced, the sales process can be derailed. Homes can languish on the market for much longer than they should and the vendor loses control of the sale, often leading to price reductions,” he pointed out.

“Agents in Salford, Driffield and Dronfield stood out in our report in aligning their vendor expectations with the realities of the market, and what a potential buyer is willing to pay for that particular house, in that particular location.

“The English and Welsh average sold price, which amounts to 96.3% of the asking price, indicates a market realism, and moreover a market that is transacting good values, despite wider macro-economic and political concerns,” he added.

This research shows the important part which an estate agent plays in those initial meetings, with an over-valuation extremely attractive at first, but damaging in the long-run. If you are thinking of selling your property, then complete your own research so that you can have open and honest conversations with your agent in order to list at a realistic value.

Britain's property market continues to defy expectations in Brexit run-up

 

Given the way in which Brexit has dominated many aspects of life in the United Kingdom, it’s difficult to recall a time when the country’s property market remained unaffected by 2016’s landmark vote. Whilst the nature of our departure later this month remains shrouded in uncertainty, the property market has been able to continue to function whilst offering positive conditions for buyers to invest and purchase property.

Buyer numbers remain healthy
The latest data provided by NAEA Propertymark point to a healthy of amount of summer activity in the market, with the number of prospective buyers rising to 37% in August according to the number of registered house hunters per branch.

“The summer months can often result in the market quietening down as families stop for their holidays, but our data has shown demand continually increasing over the warmer period and the number of sales agreed remaining high for the fourth month in a row,” offered NAEA Propertymark’s Chief Executive, Mark Hayward.

Mortgage approvals on the rise
UK Finance figures offered even more encouragement for the market, thanks to a rise in both purchasing and remortgaging figures during August. 85,391 mortgages were approached by high street banks, remortgage approvals went up 0.1% and purchases of homes saw an increase of 3.2%, all positive pieces of news for the market.

Average rent prices see another increase
The average monthly price to rent a property in the UK saw a 2.4% increase over August from the same point last year, meaning that rent prices are now at an all-time high of £970 per month (£802 when you exclude London). All 12 British regions showed an increase in rental values over the last twelve months, thanks to data provided by HomeLet.

First-time buyers keen to make their move
It’s not unreasonable to suggest that the ongoing uncertainty surrounding Brexit could have made a lot of first-time buyers wary of starting their property journey, but further statistics provided by UK Finance have suggested that this subsection of home purchasers is very much keen to get started in the market. The number of first-time buyer mortgages completed in July of this year was up 5.8% from the same point last year, offering further credence to the notion that buyers are keen to get on with their lives.

No one can quite predict where the country will find itself after October’s current Brexit deadline, but there’s enough encouragement in these recent updates to suggest that the market is heading towards the 31st of this month in a healthy state.

Read our top tips for rejuvenating your kitchen

 

We’ve all heard the saying “the kitchen is the heart of the home”, and this is never more pertinent when you’re thinking of selling. Presenting your kitchen in its best possible light may well secure you a sale, so with that in mind, we have put together some guidance on how to rejuvenate your kitchen without having to spend a fortune.

Cabinets
One of the easiest and most transformative ways to rejuvenate your kitchen is to change the cabinets. Don’t worry about replacing the cabinets themselves; instead, give them a new lease of life by painting them in a fresh, modern colour such as an olive green or pale grey. This will change the aesthetic of your kitchen entirely and certainly make it more photogenic. If you are going to paint your cabinets, then ensure that they are thoroughly sanded and primed before you apply the final colour – this will ensure the final coat adheres nicely to give you a more professional finish.

Surfaces
The surfaces in your kitchen need to be practical and attractive – changing the worktops in your kitchen will appeal to buyers and is a cost-effective way to amp-up the style factor. Laminate worksurfaces are the most cost-effective, but you can also find more luxe materials if you shop around. If you’re really looking to adhere to a budget, then try using a vinyl covering to update your surfaces.

Declutter
Even if you have a large space to work with in your kitchen, an easy way to transform the space without spending any money is to declutter. Remove the items which you haven’t utilised for a while, such as the bread maker or mixer, and try to keep surfaces clear – this will create the feel of more space and is certainly more modern in feel.

Walls
If you are looking to make a big change with a minimum of fuss, then updating your walls in the kitchen is a good place to start. Whether it is a single feature wall or the whole room, decide what you are prepared to take on in terms of a project. For feature walls, think of utilising a textured wallpaper as this can create a striking aesthetic in a room not normally associated with wallpapers (florals and leaves work well to create a natural-feeling space). If you are changing every wall, then choose a light and mellow colour to create a feeling of space and utility – avoid kitsch colours such as blue and green.

UK mortgage market continues to see growth

 

2019 has seen record levels of mortgages approved, with lenders in the market in the midst of fierce competition with one another to win customers, which is providing many of us with the chance to obtain particularly favourable mortgage rates.

The latest figures from UK finance show that the mortgage market in the UK is continuing the current rate of growth, with the number of first-time buyer mortgages up 5.8% year-on-year and home mover mortgages also up by 1.4%. Interestingly, buy-to-let mortgages have also seen something of a renaissance after a period of decline due to government changes with regards to taxation, signalling that there is once more opportunity in the marketplace for those looking to invest.

“It appears that no matter what happens in Westminster, and who can predict what might happen next, that people are still moving or managing to get on the housing ladder,’ said Richard Pike, Phoebus Software sales and marketing director.

“With an increased number of longer-term fixed rate mortgages that have been taken out since the referendum, it is unsurprising that remortgage figures are down. Until the uncertainty that is being felt across the country is over, one way or another, that trend is likely to continue as borrowers look for some kind of certainty, at least for their finances,” he pointed out.

It would appear that the competitive mortgage rates which are currently present in the market are trumping any concerns that people may have with regards to Brexit, and therefore many are making the most of the bargains which are available.

According to Adrian Moloney, sales director at OneSavings Bank, a number of buyers abandoning the wait and see approach. “This has been helped by mortgage rates remaining as competitive as they have been for some time, alongside high employment and improved earnings. In this market, there are bargains to be had and it seems some are making the most of these now,” he explained.