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Apr 11, 2022
Property Market Update: March 2022
Interest rates have increased again, the government’s Homes for Ukraine scheme has launched, and one major lender has reported record annual price rises. Read on for all this and more in our March property market update. With the clocks going forward at the end of the month, lighter evenings and Easter just around the corner, the traditional Springtime boom could also be on its way! And none too soon as there is still a desperate shortage of housing stock. Here are some of our predictions for what to expect next month… Now is the time to sell Figures recently released by property portal Rightmove have revealed that the UK’s average property price saw its most significant month-on-month increase for 20 years between January and February this year. According to their stats, the average asking price of a property rose by £7,785 in the first two months of the year, as sellers have increasingly been taking advantage of a shortage of homes for sale. The figures have also revealed the startling increase in house prices since the start of the pandemic, with average asking prices having risen nearly £40,000 in the past two years, compared with a rise of around £9,000 in the two years prior. For homeowners who have been considering selling their property, now is a great time to bite the bullet. Spring is traditionally the best time to list, with the most active buyers on the market, and with COVID-19 restrictions now lifted and house prices expected to cool off over the next few months, it could be the last opportunity to take advantage of increased asking prices. Nationwide reports record cash rise The UK’s biggest building society, and one of its biggest lenders, has reported a record rise in the cost of a UK home. According to figures released by Nationwide, the cost of a typical home rose by £29,162 in the past year – the biggest cash increase in property prices since they started collecting comparable data in 1991. This means the average asking price across the UK reached £260,230 in February, with the increased cost of living appearing to have little effect on house prices. The findings are bad news for first-time buyers struggling to get onto the property ladder, although with many property experts forecasting a slowdown in house prices in the coming months, there may be some respite for those looking to take their first steps. Buy-to-let mortgages becoming more appealing for investors Research from Mortgage Broker Tools has shown that affordability for buy-to-let mortgages is at its highest point since they started collecting data. According to their figures, average maximum loan sizes have increased by 13% in the past year, with the average currently being a little over £421,000, which represents a £20,000 increase in the past two months. And in further good news for potential landlords, figures released by Moneyfacts show that there are currently 2,235 mortgage products available to first-time investors – a considerable increase on the 1,311 products available at the same point 12 months ago. Government launches Homes for Ukraine scheme In response to the war in Ukraine, the UK government has launched the Homes for Ukraine scheme, which asks people who can, to offer a room to refugees fleeing the conflict. You’ll need to confirm that your home is available for at least six months, and you’ll be entitled to a monthly payment of £350 for up to 12 months, although you won’t be expected to cover the cost of food and living expenses. To register your interest in the scheme, just visit the government website. Interest rates rise again The Bank of England has increased interest rates for the third time in four months to try and lessen the effects of the continued cost of living increases. The rise will directly impact around two million homeowners who have either a variable or a tracker mortgage, as they’ll see their monthly repayments increase again. For homeowners with a £200,000 mortgage, this will mean around a £42 increase to their monthly repayments. And Finally… Homes for under £10k While asking prices may have hit record highs and youngsters feel increasingly uncertain they’ll be able to get onto the property ladder, it’s certainly not all doom and gloom for would-be buyers. A recent post by major property portal Zoopla has revealed a list of 14 properties for sale for £10,000 or less. While some will need extensive work doing to them, and some will fetch higher at auction, it does show that there are still bargains to be had despite the significant increases in prices over the past couple of years! For more property news and updates and a more detailed overview of Greater Manchester area, get in touch with Property Genius. We are your local property experts.
Mar 21, 2022
Property Market Update: February 2022
Interest rates have increased again for the second time in quick succession, and a quiet Wiltshire town has leapt up the property hotspot list! In good news for tenants, the government has announced new reforms to protect renters. Read on for all this and more. WHAT CAN SELLERS ENTERING THE MARKET IN MARCH 2022 EXPECT? With all COVID-19 restrictions being lifted by the end of March (if not sooner), and spring just around the corner – which is traditionally a hot time of year for the property market – here are some of our predictions for what to expect next month… HOUSE PRICE GROWTH SET TO SLOW After a strong start to the year, house prices are forecast to stabilise over the coming months. The UK’s biggest building society, Nationwide, reported a sixth consecutive monthly increase in January, with prices rising 0.8% on the previous month and 11.2% annually. Competitor Halifax also announced increases of 0.3% from the previous month and 9.7% annually. However, despite these consistent increases over the past 12 months, both lenders have predicted a cooling of the housing market in 2022, with the cost of living increases and limited supplies of new housing stock coming onto the market being cited as major factors. Movers and Shakers CORSHAM NAMED AS A TOP PROPERTY HOTSPOT The picturesque country market town of Corsham in Wiltshire has been named as the UK’s newest property hotspot. The town might not be instantly familiar by name, but TV fans will recognise it, as it’s appeared in numerous period dramas, from Poldark to Lark Rise to Candleford and Tess of the D’Urbervilles. And with demand for more open spaces and work from home offices remaining strong, the town on the edge of the Cotswolds is seeing a big increase in buyer activity. Figures released by major property portal Rightmove show an increase in buyer demand of 124% compared with 12 months ago. Average prices have inevitably increased too, with a jump of 6% year on year. The majority of buyers are Londoners seeking more bang for their buck, and with average prices in the town of a little under £330,000, it’s no surprise that it’s attracting many out-of-towners. First-Time Buyer News AFFORDABILITY ISSUES REACH RECORD HIGHS One of the UK’s biggest lenders, Nationwide, has announced some startling figures which affect first-time buyers’ affordability. While it’s widely known that house price growth has outgrown wage growth, the building society has laid bare just how much price increases have outpaced wages since the pandemic began. Their figures reveal that a 10% deposit on a first home is now equivalent to 56% of total gross annual earnings, which is a new record high. Buy-to-Let News SECTION 21 TO BE ABOLISHED In a move that will protect renters, the Government has announced plans to abolish Section 21, which allows landlords to evict tenants without any reason. The plans are part of the Government’s Levelling Up White Paper, which is aiming to help poorer communities become more prosperous. Other changes that are planned include ensuring that privately rented properties meet minimum standards, and the introduction of a landlords register, with an aim to crack down on rogue landlords. Latest news for Landlords ALMOST 1/3 OF TENANTS ADMIT TO KEEPING HIDDEN PETS! A recent survey has found that 27% of tenants have admitted to hiding pets from oblivious landlords for more than three years. The most commonly hidden pets are birds and rabbits, while somewhat surprisingly, horses are in third place! We’re not sure entirely how you hide a horse – suggestions on a postcard, please! The number one way to avoid landlords discovering pets during an inspection was to take them out for a walk, which was followed closely by asking friends to look after them, and then asking a neighbour to keep hold of them during inspections. The study also revealed that the most pet-friendly landlords are in Norwich, with the least friendly being in Edinburgh. Mortgage News INTEREST RATE INCREASE FOR THE SECOND TIME IN THREE MONTHS The Bank of England has announced an increase in its base interest rate from 0.25% to 0.5% – the second increase in just three months. The increase will mean a rise in monthly mortgage repayments for around two million homeowners with variable-rate mortgages and will add around £24 per month to a £200,000 mortgage. The rise comes hot on the heels of Ofgem’s announcement that energy bills will increase by 54% this year, as millions of households face a squeeze on the cost of living. And Finally… A home with a rather unusual feature in the front garden made headlines on social media recently. The 2-bedroom bungalow in leafy Nursling, Hampshire, has a spacious back garden with views across lush green fields, but it’s the enormous telephone pylon in the front garden that really caused it to go viral. You can check it out here, but hurry – the property’s already sold, subject to contract. Property Genius are your local property experts for the Chorlton, Manchester area. Call us on 01618813028 or email contactus@property-genius.co.uk to find out how we can help you buy a new home or sell your property.
Jul 2, 2021
July 2021 Update
The lettings market is ramping up as we head into summer, the busiest time of the year for the private rented sector. That hasn't stopped the news cycle, however, with the government announcing how right to rent checks on EU, EEA, and Swiss citizens will be carried out from 1 July 2021. Plus, it also confirmed that virtual checks on all other nationalities will continue until 31 August 2021 While all eyes were on the sales market ahead of the June 30th Stamp Duty Holiday deadline, the lettings market recorded a strong month according to the Goodlord Rental Index, with voids continuing to decrease and rents strengthening across England. CHANGES TO RIGHT TO RENT CHECKS FOR EU, EEA, AND SWISS CITIZENS AND EXTENSION OF "COVID-ADJUSTED" CHECKS The government has confirmed how letting agents and landlords will check the right to rent status of EU, EEA, and Swiss citizens from 1 July 2021, many of whom will no longer be able to physically document their right to rent in England after this date. Citizens from the EU, EEA, and Switzerland who have successfully applied to the EU Settlement Scheme or for a UK visa will need to use the government's new "View and Prove" online service to share their right to rent status with landlords and letting agents. Meanwhile, the government has extended the virtual right to rent checks on all other nationalities in England by an extra month to 31 August 2021, to reflect the extension of lockdown restrictions. The government has also dropped its requirement for letting agents and landlords to carry out retrospective right to rent checks on tenants for this period. We check your tenants' right to rent as part of all of our services, but if you have any questions on the changes, don't hesitate to get in touch. WIND DOWN OF FURLOUGH SCHEME BEGINS WITH REINTRODUCTION OF EMPLOYER CONTRIBUTIONS Businesses using the Government's Coronavirus Job Retention Scheme - also known as the furlough scheme - will be required to make a contribution to the cost of their furloughed employees wages. From 1 July 2021, the government will reduce its contribution to 70% of wages, down from 80%. The level of the employer's contribution will increase to 20% in August and September, until the scheme ends on 30 September 2021. Since the start of the pandemic, more than 11.5 million employees and 1.3 million employers have been supported by the Coronavirus Job Retention Scheme. Although the number of people using the scheme has dropped significantly since the beginning of the year, the most recent government data shows that at least 3.4 million people are still relying on furlough for their income. The end of the scheme could lead to a rise in unemployment, putting some tenants' incomes at risk. Forecasters at the Bank of England, as well as the government's spending watchdog, the Office for Budget Responsibility, are "expecting a small rise in unemployment after furlough ends". We're still keeping in touch with your tenants to ensure that we're up to date on their current situation. If you have any questions or concerns, please feel free to get in touch. OPTIONAL: We offer Rent Protection Insurance, which pays out for up to 15 months’ worth of rent, and it will continue to pay out for 75% rental payments for up to two months after vacant possession. The policy is designed to protect you against the risk of a tenant not paying their rent, breaching their agreement or damaging the property. Get in touch if you would like to learn more.
Jun 18, 2021
Climate Projects we're supporting this month
PROTECTING OLD-GROWTH RAINFOREST IN PERU Madre de Dios is the third-largest, and least densely populated, region of Peru. It is home to much of the Peruvian Amazon. The region has historically been subject to numerous conservation challenges. These include the extraction of the rich natural resources in the area – including rubber, timber, and alluvial gold. In 2011, the completion of the Trans-Oceanic Highway – linking Peru to Brazil – presented further challenges to the conservation efforts in the region, dramatically expanding the nearby town of Puerto Maldonado, and producing an uptick in illegal logging in the region, in areas nearby to the highway. The local community is reliant on the old-growth rainforest, but protecting it from degradation and deforestation activities has been a challenge. Supporting the community to both safeguard the rainforest and to establish sustainable sources of income are therefore top priorities in the region. 0.9T CO2 REMOVED PEATLAND RESTORATION AND CONSERVATION IN INDONESIA Peatlands are a type of wetland and are among the most valuable ecosystems on Earth. The term ‘peatland’ refers to the peat soil and the wetland habitat growing on its surface. Peat is a swampy, water-logged soil that is made through the slow accumulation of dead trees, plants, and other organic material which can only partially decompose due to the volume of water these habitats contain. These unique habitats store massive amounts of carbon, with stocks below ground amounting to up to 20 times the amount stored in trees and vegetation. Despite covering just 3% of the Earth’s surface, they store more carbon than all other vegetation types in the world combined. When peatlands are cleared, drained or burned, the carbon stored within them is released into the atmosphere as carbon dioxide. Indonesia contains some 36% of the world’s tropical peatlands, however, they are increasingly being destroyed to make room for plantation crops including oil palm and acacia. From 2000 to 2015, the country lost an average of 498,000 hectares of forest each year. 0.5T CO2 REMOVED
Jun 11, 2021
June 2021 Update
Life is slowly starting to return to normal, and the gradual relaxation of restrictions includes those impacting the private rented sector. With the eviction ban coming to an end on 31 May 2021 and notice periods beginning to reduce, we're slowly but surely returning to normal. We all have our fingers crossed hoping further restrictions will be relaxed on June 21st, however still remain vigilant at this time maintaining social distancing and keeping everyone safe. Our office has been open now for a while with normal opening hours, but some of us are still working from home when we can. Pre-pandemic priorities also appear to be back on the government's agenda, with the Queen's Speech confirming that proposals for the Renters' Reform Bill will be released in autumn. Graeme and the The Property Genius team EVICTIONS BAN ENDED ON 31 MAY 2021 AND NOTICE PERIODS BEING REDUCED TO FOUR MONTHS The government has confirmed that the evictions ban ended on 31 May 2021, however, bailiffs have been asked not to carry out an eviction if anyone living in the property has Covid-19 symptoms or is self-isolating. From 1 June 2021, notice periods - which had previously been extended to six months' notice - will be reduced to four months' notice. The announcement also said that, "subject to the public health advice and progress with the Roadmap", notice periods will return to pre-pandemic levels from 1 October 2021. Courts will continue to prioritise the most serious cases, such as those involving fraud or anti-social behaviour, with many of the evictions waiting to be enforced when the ban lifts, predating the pandemic. Notice periods for the most serious cases will remain lower. We're still keeping in touch with your tenants to ensure that we're up to date on their current situation. If you have any questions or concerns, please feel free to get in touch. GOVERNMENT CONFIRMS THE RENTERS' REFORM BILL WILL BE MOVING FORWARD The Renters' Reform Bill - first announced in late 2019 - is back on the agenda with the Queen's Speech confirming the government's intention to "enhance the rights of those who rent". In the briefing notes to the speech, the government announced that it would outline its "reform package" for the private rented sector in the autumn. This is set to include abolishing Section 21, as well as strengthening repossession grounds for landlords under Section 8 when they have valid cause. The government will also outline proposals for a new ‘lifetime’ tenancy deposit model that eases the burden on tenants when moving from one tenancy to the next, helping improve the experience of those living in the private rental sector. If you have any questions about the Renters' Reform Bill and what it could mean for the private rented sector, don't hesitate to get in touch. OUR RENTAL MARKET PERFORMANCE OVER THE PAST MONTH The rental market roared back to life in May after a steady start to 2021, with void periods diminishing across the country, according to the latest Goodlord Rental Index. Despite the sales market taking centre stage following the stamp duty-induced frenzy, the increasingly strong performance for lettings is set to dominate the narrative this summer. Across the country, voids are tumbling and rents continue to be more resilient than predicted. 0 Likes
Jul 15, 2020
Green Homes Grant Scheme
You may have heard about the Green Homes Grant Scheme in the announcement recently together with the Stamp Duty Land Tax ‘Holiday’. To further clarify what this is and how this may apply to you, I’ve set out a few points that are worth considering: The scheme starts in September 2020. It is a requirement as a Landlord to hold an EPC Energy rating report, which will show you the energy efficiency of the buy-to-let property. If you are thinking of improving this rating then this could be a great incentive to do so. The grant is up to £5,000 but could be as high as £10,000 dependent on certain circumstances. It is anticipated that the Government will pay up to two-thirds of the cost of making a home more efficient. At present, there is very limited information with what this will mean for Landlords as the guidance has not yet been fully published. Typical examples of qualifying improvements include, but are not limited to; Insulation Heating Double glazing Draught-proofing Renewable energy features such as solar panels and heat From reviewing the guidance so far, this looks to be treated very much the same way as any other grant that has so far been given to the public to help with finances during this crisis. What I mean by this is that it will not be repayable, unlike the Coronavirus Business interruption Loan or the Bounce Back Loan – which are what they say on the tin – Loans! So there you have it! Two great savers to help you with your buy-to-let portfolios! Book a discovery call in with me and let’s find out if I can help you put a plan in place to take advantage of the current help that’s out there! Contact details: Mellissa Dean FCCA (Director) M: 07740293463 E: hello@innovateadvice.co.uk W: www.innovateadvice.co.uk
Jul 14, 2020
Stamp Duty Land Tax “holiday”
I’m certain you will have heard all the buzz around the new help and support that the Government announced in the mini-budget last week. You are no doubt eager to find out if any of this will apply to you so I’m here to give you the key facts that have been made thus far. The chancellor announced that Stamp Duty will not apply to main residences which have a value of up to £500,000. Prior to this announcement, SDLT was payable on any value over £125,000, or £300,000 if this was a first-time buyer purchase. But what does this mean for Landlords, if this has been specifically mentioned for main residence properties? You will be pleased to hear that buy to lets and second homes are also eligible for the saving, however, the 3% additional SDLT remains payable at the same rates as they always have been following the same rules and guidelines. A small amount of guidance has been published at this point. Higher rates for additional properties The 3% higher rate for purchases of additional dwellings applies on top of revised standard rates above for the period 8 July 2020 to 31 March 2021. The following rates apply: Property or lease premium or transfer value SDLT rate Up to £500,000 3% The next £425,000 (the portion from £500,001 to £925,000) 8% The next £575,000 (the portion from £925,001 to £1.5 million) 13% The remaining amount (the portion above £1.5 million) 15% If you have your property portfolio trading as a Limited company, you can also benefit from the increase, as will companies that purchase a residential property of any value where they meet the relief conditions from the corporate 15% SDLT charge. Be mindful that there has been no change with the filing deadlines for submitting SDLT paperwork, and any purchases under the £125,000 still require there to be a return filed to HMRC. At present, it appears that if you have exchanged contracts, but not yet completed up to the date of 8th July, then you are able to claim this relief and the purchase will only be subject to stamp duty at a rate of 3% on values up to £500,000. Unfortunately, if you completed contracts prior to the 8th July then you have missed out on the relief. There is currently no recourse to claim this back, even if you were only a couple of days out. This is only a temporary free and on 1st April 2021 rates will be returned to the original applicable rates. Book a discovery call in with me and let’s find out if I can help you put a plan in place to take advantage of the current help that’s out there! Contact details: Mellissa Dean FCCA (Director) M: 07740293463 E: hello@innovateadvice.co.uk W: www.innovateadvice.co.uk
May 13, 2020
Our response to Covid-19
UPDATED 13th May 2020 As I’m sure you’re all aware, Coronavirus (COVID-19) has been putting increased pressure on businesses across the UK. We also recognise the unique role that we play in our customers’ day to day activities and we, therefore, wanted to share our commitment to maintaining service continuity so our customers can stay focused on their own daily lives. To ensure the COVID-19 crisis will not impact us or the level of service, here are the measures we've taken: OFFICE & TEAM: Following official guidelines: Our offices are strictly adhering to all guidelines from the Center for Disease Control (CDC) and the World Health Organization (WHO), and our staff are taking all preventative measures seriously. Working remotely: We operate day to day via cloud-based systems and therefore we expect any disruption to our level of service to be minimal. We’ve already arranged for all members of staff to have access to a computer and telephone system. Property Management services such as responses to maintenance issues and accounts will not be affected. Opening the office: The physical office is open by appointment only and all members of staff adhere to social distancing while mitigating our risk of contact as much as possible. Travel restrictions: We love travelling to meet our customers, for the time being, we’ll be halting all travel and conducting the our meetings virtually by phone/video call. Managing employee illness: Employees who are not feeling well are instructed to stay at home. If they, or a family member, are diagnosed with the virus, our team will be immediately notified. No Property Genius employee', as of sending this email, have contracted COVID-19. VALUATIONS & VIEWINGS: Remote Viewings: Due to social distancing restrictions and government guidelines, we can show properties through EyeSpyLIVE™️. Viewers can join one of our agents inside a virtual tour, where all parties can see and hear each other. Imagine FaceTime or Skype inside of a 360-degree virtual tour. That way, buyers and tenants can learn about the property and ask questions whilst being shown around. There’s nothing to download, and no registration needed. Physical Viewings: Our focus remains on virtual activity in the first instance with physical viewings only taking place where there is serious intention to rent or buy. Arrangements for viewings should only involve the number of participants that are essential. We will accompany physical viewings and seek to maintain a minimum of 2 metres distance from others wherever possible. No open house viewings are permitted, and we ask any potential viewer to discloses any Coronavirus symptoms. Making reasonable, regular checks: We ask if our customers have returned from an impacted area, have a high temperature or a recent dry cough or have had any contact with anyone with symptoms. If they have, we will not conduct the viewing. REFERENCING AND MOVE-INS: Referencing Remotely: All our processes are carried out online through our website and third party referencing company Goodlord. There are no forms to print off and ID verification can take place over video call if required. Please note, referencing can take a little longer due to prospective tenant’s employers taking longer to respond themselves. Moving In: Once referencing has been completed, the tenancy documentation can be signed online and the rent and deposit can be paid through bank transfer. If possible, we can post keys to you if there is enough time, or a set time can be arranged to facilitate the hand over of keys at the office at an agreed time while exercising social distancing. INSPECTIONS & MAINTENANCE Property Inspections: We’re holding off on conducting property visits and providing our reports until further notice. However, we have an option of remote ‘Virtual Visits’ will allow tenancy compliance standards to be maintained, documented and communicated remotely. This can happen by way of an initial phone call to the tenants, followed by triggering our templated report electronically with an audit-trailed responsive webpage between all parties with photo upload tools. This will ensure compliance throughout this difficult period. Restricted maintenance responses: We must consider whether it is absolutely necessary to deploy a contractor right away. All essential required works will continue as normal unless a tenant has the symptoms of the virus. Where a tenant refuses access to a property, we’re ensuring this is documented to ensure compliance is met. RENTAL PAYMENTS Rental payments & arrears: Where a tenant is suffering with financial uncertainty, we ask they inform us right away so we can put together a plan of action. An early conversation between landlord and tenant can help both parties to agree a plan if tenants are struggling to pay their rent. This can include reaching a temporary agreement not to seek possession action for a period of time and instead accept a lower level of rent, or agree a plan to pay off arrears at a later date. Evictions & Possessions: When using either Section 8 or Section 21 notices to quit, landlords must give at least three months’ notice before they can apply to the court for possession. This applies regardless of which ground is used for Section 8. All new or existing claims for possession are suspended for a 90-day period from 27 March 2020. The legislation covering notice periods is in force until 30 September 2020. It is subject to review and may be extended. Universal Credit: Tenants can apply for Universal Credit online and can receive up to a month’s advance upfront without physically attending a job centre. If individuals are suffering from Coronavirus or are required to stay at home and want to apply for Employment Support Allowance (ESA), the usual seven-day waiting period for new claimants will not apply. ESA will be payable from day one www.gov.uk/apply-universal-credit. If an individual cannot work due to Coronavirus and is eligible for Statutory Sick Pay (SSP), they will get it from day one, rather than from the fourth day of their illness. This applies retrospectively from 13 March 2020. People receiving benefits do not have to attend job centre appointments for three months, starting from 19 March 2020. The government has increased the standard allowance in Universal Credit and the basic element in Working Tax Credit for one year. If individuals are already receiving Personal Independence Payments, ESA, Universal Credit or Industrial Injuries Disablement Benefit they will continue to receive their current payments as normal. If you have urgent concerns visit: www.nhs.uk/conditions/coronavirus-covid-19 Latest Government advice: gov.uk/guidance/coronavirus-covid-19-information-for-the-public We are prioritising our customer’s needs and will make any necessary changes to continue to support you and avoid any disruption to your service during this time. If you have any questions, please don’t hesitate to reach out.