Local Market Update...

Welcome to our newsletter.

This month, we look at the stamp duty relief for first-time buyers, how homeowners are confident that house prices will rise, and how much the average homeowner spends on their home in the first 5 years.

We also discuss some key design tips for your bedroom and have a market commentary from our very own director, Rob Farnham!

Local Market Update - 2018

January and February are months when people begin to implement changes in their lives to suit their long term goals, moving home, upsizing, downsizing and getting on the housing ladder are all positive things.

If you fit one of those categories now is the time to make a move, stock levels across the region are low, mortgages readily available which means the time that properties stay on the market is reducing so now is the time for action not prevarication. Property portals recorded record levels of website visits during the peak property viewing weeks of the turn of the year.

Now is very much the time to have a chat with a local agent and ask advice on planning, preparation and price.

Planning is key, speaking to a Mortgage Advisor to understand what funds are available and the total cost of moving, preparation in terms of making your property look as good as it can to prospective purchasers and finally a realistic indication of price.

Ask for comparables of what other properties have actually sold for, both in terms of where you’re buying and also where you’re selling. Zoopla highlighted that in 35% of cases the selling price of a property varied by more than 5% form the advertised price.

The market in the North West is seen by many industry experts as being one of the areas of the UK that has the most potential for growth in prices over the next five years. Savills have predicted that prices may raise 18.1% in the North West in the next five years as a result of increasing employment in the major city areas and the impact of HS2.

Rightmove are predicting the UK market will see a rise of 1% as a result in rising prices everywhere except the South East.

We have experts in every area based locally who will help you reach a balanced and realistic decision and will be you every step of the way.

Rob Farnham

CEO

The Venmore Group

First Article Headline

Government Announce Stamp Duty Relief for First-Time Buyers

In his autumn budget, the Chancellor announced that first-time buyers will no longer pay stamp duty.

There were many changes announced by the government in the most recent budget, but the major headline was the scrapping of stamp duty for first-time buyers on all properties up to a value of &300,000.

This change will take effect immediately and could save first-time buyers a potential &5,000 in fees when completing on their home.

What is Stamp Duty?

Stamp duty is a tax applied to any property purchase priced at more than &125,000. The latest reform will see the minimum stamp duty limit increased to &300,000. This means that according to statistics, approximately 80% of first-time buyers will save money on stamp duty fees.

For first time buyers buying a property within the range of &300,000 to &500,000, they will pay less stamp duty as the rate has been set at 5%. While buyers in this price range won’t avoid the tax completely, buying a home valued at &500,000 will now cost you &5,000 less.

How could this move affect the market?

While it is still very early days and it may be some time before we see a reaction from the market to this reform, some experts are suggesting that vendors will simply respond by raising the price of their home.

The Office for Budget Responsibility shared this opinion saying that “…the main gainers from the policy are people who already own property, not the FTBs themselves"

Other experts believe that house prices are the real problem and while the scrapping of stamp duty will save first-time buyers some money, it doesn’t mean that they will rush to buy a home now that this reform is in place.

Tom Kibasi of the Institue of Public Policy Research commented, saying “unaffordable house prices are the problem, not stamp duty. For most young people, the stamp duty cut will make little difference. But it will help the beneficiaries of the bank of mum and dad.”

4 out of 5 Homeowners are Confident House Prices Will Rise

The majority of UK homeowners are confident that property prices will rise over the next six months, a recent survey found.

Zoopla’s latest ‘Housing Market Sentiment' survey has found that homeowners in the East Midlands and Scotland were especially confident that house prices will rise by April 2018, with over 80% of respondents from these areas saying so.

However, the country’s collective optimism has experienced a slight drop when compared to the last sentiment survey conducted in April 2017, which found that 87% of British homeowners believed that house prices would continue to grow.

After the East Midlands and Scotland, the south west of England was the third most optimistic region, with three-quarters of homeowners expecting to see an increase in property values.

London, the north east, and Yorkshire and the Humber are the three least confident regions, with 62%, 65% and 67% of respondents respectively, anticipating a rise in values.

It may come as a bit of a surprise that London homeowners are pessimistic about the future of the property market when house prices in the capital have consistently been on the rise over the last decade.

Whilst some areas of the country are experiencing some Brexit related doubt, the majority of homeowners in each region and the country as a whole are confident that the UK housing market will continue to see prices rise.

Homeowners Spend an Average of £10k Updating Their Homes in the First 5 Years

A recent study looking into the amount that homeowners spend on a new property has found that, on average, homeowners spend &10,743 within the first five years of moving into their new home.

This survey was conducted by Furniture Choice, who questioned 1,000 UK homeowners, and looked into the most common purchases for a new home and the average cost of each of these items or upgrades.

According to responses, new homeowners spend just over &2,000 on basic furniture, such as; sofas (costing an average of &669), Beds (&381), wardrobes (&314), and dining sets (&308) - meaning that buyers need a little bit more than a deposit to get started.

The kitchen also appeared to be quite costly, as homeowners spent just over &1,000 on white goods and cooking appliances.

It can also be quite common for homeowners to run into unexpected costs such as faulty plumbing and electrical issues within the first few years in a new home. These issues along with other general repairs came in at an average cost of &3,500, according to responses.

While some buyers are prepared to get stuck into a fixer-upper, some survey participants revealed that they still had to put some cash into upgrading a recently renovated home.

Survey participant, India Benjamin, spent close to &2,000 fixing unexpected faults, showing that buyers need to be thorough when viewing a home and fully understand the costs involved. “The house was newly renovated when I bought it, but only on the surface. I had to replace the boiler within six months of buying the house; apparently, it was nearly ten years old, despite being in a brand new cupboard, and I’ve been advised my whole toilet cistern needs replacing.” Said Benjamin.

Furniture Choice's Tom Obbard, spoke on the findings of the survey, stating that “buying a new property is stressful enough as it is, so it’s vital that potential buyers are aware that solely saving for a deposit isn’t enough anymore, especially when it comes to first-time buyers.

“Budgeting for furniture can begin before you even look for a house; starting a Pinterest board or even a spreadsheet to get an idea of cost, as well as style, can really help to give an indication of how much you will need to save. Stick to the basics at first; a bed, sofa, and dining sets are always good to start with. Smaller items can be bought gradually, if you’re on a tight budget.

“Some costs, such as repairing hidden damage, can’t be foreseen, but having an emergency buffer in place will help to limit any financial strain these problems have”.

How to Redesign Your Bedroom

Your bedroom is supposed to be a respite from the busy goings on of day-to-day life. So when it comes to a sleep space makeover, it’s vital you think of every aspect of your bedroom.

Decide how you plan on using the space

Before you start planning out where everything goes; take a moment to consider what you want the main function of the room to be. Is it just a space to rest and sleep? Or do you plan on spending a lot of your time in the room? This way you can plan the layout and the types of furniture you need.

If you are happy with the furniture you have but unhappy with the room, consider having a switch around. A simple layout change can make a surprising difference and really breathe new life into your bedroom.

Get rid of your tech

Want to achieve true peace and tranquillity? Ban technology. No televisions, phones, laptops, or games consoles. Experts say if you MUST have a TV in the room, you should consider keeping it in a cupboard or custom-made cabinet, to ensure it does not dominate the space.

Choose the right colour

You need to find the right colour to compliment how you want to use your new bedroom. For a restful space choose muted tones, if you want to turn it into a space for sleep, opt for grey or blue to bring that calming sensation to a room. Paint can even give your old furniture a new lease of life.

Keep privacy in mind

Placing your bed directly in front of your door or window can mean you do not feel like you have a lot of privacy without shutting the door and curtains. Try to position your furniture so that you can turn the room into a true sanctum.

Make sure your bedroom represents you

Redesigning a bedroom does not mean you need to pick a function and stick to it. Ensure you inject it with a little of your own personality. Bedrooms are perfect for cultivating displays, so whether you love photography or just like to hang jazzy textiles from the wall, make sure you style your room around yourself.

Finally… take your time!

Rushing into a project can quickly lead to a poorly thought-out mess. Take the time to consider how you want your room to be and work towards that aim. It’s always better to put effort into the plan beforehand so that your ideas can fully flourish.

Top Tips to Help Sell Your Home this Winter

When selling a home, many homeowners tend to avoid certain seasons, as they are under the impression that the spring and summer months are the best time to put your home on the market. While the warmer months have historically seen more activity for property transactions, how you present your home makes a greater impression than when you put it on the market.

For those of you with your home already on the market or considering selling during the winter months, we discuss a few steps you can take to get more buyers in the door and prevent your home from looking as miserable as the weather does!

Kerb appeal

This is something that’s important, regardless of what season you put your home on the market, but is especially vital in the winter months. First impressions count and the winter weather will do its best to make your home look a little messier than usual, so you need to stay on top of maintaining the exterior.

Keeping driveways and paths as clean as possible is the best start. There is bound to be all sorts of debris and leaves blowing around in the wind so just take a moment to tidy up every now and then. Weather like snow can be a positive at times as it may give your home a very cosy, festive look, however, be sure to tackle any hazardous icy pathways just to be safe.

When the days get colder and darker, we usually tend to forget that our gardens exist for a few months. However, if your home is on the market, a cleanup of the garden can go a long way. This doesn’t mean you have to get out there and begin renovating with new plants and features, but it does mean that the garden has to appear as if it hasn’t been forgotten about since that last BBQ in August. Give anything that’s overgrown a trim, and any outdoor furniture that’s been battered by the weather should be removed and hidden or replaced.

Make the most of the situation

While it may feel like you’re fighting against dark days and dreadful weather to make your home more appealing to buyers, there are some ways that you can use this time of year to your advantage. The objective here is to make your home a haven of warmth so that buyers will want to come flooding in to escape the cold.

Lighting, similar to a property's kerb appeal, is another factor that’s vital regardless of the time of year, but when it starts to get darker around 4 pm, opening the curtains to try and flood the room with natural light isn’t really an option. However, you’re not completely out of luck as the right type of soft ambient lighting around the house can create the right sort of welcoming and cosy atmosphere that you’re looking for.

Keeping your property clean is also imperative. It may become tiring cleaning your home after every viewing, but it’s definitely worth it. With the weather being wet and windy, both you and buyers are certain to bring an amount of mess on the bottom of your shoes, so get a good doormat to prevent it travelling throughout the house and vacuum daily.

Final bits

Finally, you should inspect your home for all of those odd jobs like creaky doors and small marks on the wall. A bit of paint and WD40 can do wonders in making your home seem like it’s all in working order. The bigger the list of small fixes for you, means a bigger list of small fixes for the buyer and only adds to the ‘reasons not to buy’ list.

Normally during the warmer months, we’d advise opening as many windows as possible to get the fresh air in, however, when its minus 2 outside that may not be an option, so try and introduce a pleasant scent such as fresh coffee or a subtle plug-in air freshener.

Also, the greenery outside may be turning brown, but that doesn’t mean you can’t add a few decorations inside to make sure the home feels full of life.

Property Transactions See 9.2% Increase Across the Year

Recent statistics from the HMRC look into the number of property transactions between September and October of 2017 as well as the 12 months running up to October of last year, with some surprising findings.

It was reported that between the months of September and October, there were 105,260 residential property transactions, meaning a 1.7% rise in transactions throughout the UK.

In comparison to the statistics recorded in the same period of 2016, activity has taken a considerable jump of 9.2% in October of 2017.

The number of non-adjusted residential transactions also saw a rise over the last 12 months, with an annual increase of 13.3%.

There has been plenty of talk within the property market of a slowdown in activity, however, recent figures do suggest a different story as October was the busiest month in 2017 for residential transactions.

These findings possibly show signs of a recovering market, and while many experts believe that the sector is almost too large to fail, the rise in activity that was just short of 10% across the year is definitely a positive sign for all parties.

Former RICS residential chairman, Jeremy Leaf, spoke on the latest statistics, stating that "on the high street, these figures are much more relevant than the boom and bust of house price rises and falls.

"They bear out what we’ve seen in other recent reports that the market is proving much more resilient than we might have expected. However, the government could do much more to promote transactional activity which would benefit the WHOLE economy.

"We are looking to the Budget to promote more supply to support additional transactions, not just push up demand and prices as some previous policy decisions have done."

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