Call me back

Newsletter

View All Categories...

Your October property news update by ehB Residential




Tenants stay put due to rising rents: Is it time to go fully managed?

According to data from Propertymark, a shortage of rental stock is fuelling the surge in renters staying put, with 73% of letting agents saying they have seen a growth in the number of tenants renewing contracts over the past year.
 
Increase in long-term tenants
 
The rental market has seen a vast increase in tenancy renewals due to a shortage of stock, which has had a knock-on effect on rising rents. Remaining in the property is currently far more desirable than taking the risk with another property, or location, in a time of economic discomfort.
 
Propertymark’s July Private Rented Sector Report detailed the continuous surge in rental demand, with an average of 127 new applicants registered per member branch last month, noting that “this number has been on a slow upward trend since February.”
 
The imbalance between supply and demand has led to 82% of agents acknowledging that month-on-month rent prices increased in July. Pressure on rents has been steadfast since last year, with the cost-of-living crisis and rising inflation playing equal parts in the increases.
 
The cost-of-living crisis has created a vast number of long-term tenants, as saving for a deposit takes a back seat for the time being. The rental growth caused by current rampant demand is also a huge driving factor behind many people choosing to delay taking out a mortgage until supply picks back up, making rental accommodation a highly popular choice. Becoming a landlord in today’s climate allows the investor to generate capital growth, as their yield grows while the property value increases.
Is now the time to go fully managed?
 
With the disparity between supply and demand underpinning a rise in inflation, UK landlords are reaping the benefits of getting their foot in the door during a time of peak buoyancy. As the average property price increases, future sale prices also increase, meaning a buy-to-rent asset increases in value over time.
 
However, such an asset can be difficult and time-consuming to manage without help, particularly for new landlords who are still learning the ropes. The prospect of long-term tenants presents its own challenges too, as long-term use of a property demands more regular check-ups and maintenance.
 
To help landlords secure and maintain long-term tenants, letting agents can:
  • Find the right tenant for you and market your property.
  • Arrange the tenancy: A rental agent can handle everything from getting references to running credit checks, securing deposits, and drawing up tenancy agreements.
  • Collect rent: A rental agent can collect rent from your tenants and follow up on any late payments.
  • Answer tenant queries, deal with issues and concerns, and handle maintenance or repair work that needs scheduling.
 
Fully managed services can ensure the quality of your tenants
 
One of the most important reasons for becoming fully managed is to ensure that you have high-quality, dependable tenants. A managed service can help you to create long-term, positive relationships with tenants who are loyal, pay their rent on time and keep your property in good condition – giving you peace of mind.
 
If your tenants are staying put for longer, our fully managed services will alleviate the stress of taking care of your property. Find out more by getting in touch today.
 
 



First-time buyers: What deposit will you need?

Whether you are thinking about saving for your first house or you have been saving for a while now, the deposit will most likely be the first hurdle on your journey. Here are some of the basics you’ll need to know to help you get a leg up.
 
What is a mortgage?
 
A mortgage is a loan taken out to buy a property or land. Most will run for 25 years, but the term can be shorter or longer depending on the property.
 
The loan is ‘secured’ against the value of your home until it is fully paid off. If you fail to keep up with your repayments, the lender can repossess the home and sell it to get the money back.
 
How much of a deposit do I need to buy a home?
 
Before you start looking at properties, it’s best to get your deposit saved first and foremost.
 
Generally, you will need to save at least 10% of the cost of the home you would like to buy. This figure depends on whether you’re buying alone, in which case you can split the deposit in half. It also depends on current market activity at the time of the purchase. For example, most sellers will ask for a higher minimum deposit during economic headwinds or overwhelming demand, as this ensures that they will achieve the right asking price.
 
Saving above 10% will give you more leverage for the home you want, expand your choices on the market, and secure you a lower monthly interest rate.
 
Help for first-time buyers
 
If you are in a situation where you can only save a small deposit, or you do not have the option to split the cost in half with a secondary resident, there are a range of government schemes available to give you a helping hand on the housing ladder. Options include:
  • Lifetime Individual Savings Account (LISA) – You can use a LISA to buy your first home or save for later life. You must be aged between 18 and 39 to open a LISA. You can put away up to £4,000 each year and the government will add a 25% bonus to your savings. However, there is a penalty for taking money out of a LISA if you are not putting it towards a deposit, or withdrawing after age 60.
  • Equity Loan – This scheme is only available to first-time buyers in England who want to buy a ‘new-build’ house within the relevant regional price cap. You can borrow up to 20% (40% in London) of the purchase as an interest-free equity loan. You do not pay interest on the equity loan for the first five years, but you will start to pay interest in year six. The equity loan payments are interest only, so you do not reduce the amount you owe.
  • Shared ownership – Shared ownership offers first-time buyers the option to buy a share of the home from the landlord, who is usually the council or housing association, and pay a reduced rent on the remaining share. Later, you can choose to buy a bigger share in the property, and ‘staircase’ up to 100% of its value.
Some of these schemes are ending or unavailable in certain locations, so it is important to thoroughly research each one, save as much as possible and seek out bespoke advice about your savings options.
 
Other costs for buying a home
 
When saving for a deposit, it’s important to remember that there are other fees and costs you will need to save for, before you can take the plunge.
 
These include:
  • Survey costs
  • Initial furnishing and decorating costs
  • Buildings insurance
  • Solicitor or conveyancer fees
  • Removal and moving costs
  • Stamp Duty
 
If you are struggling to save for a deposit
 
If you are struggling to save up a large enough deposit to move out within a certain timeframe, there are options available to help you.
 
Family assistance mortgages allow whoever is supporting you to put in a percentage of the money you are looking to borrow into a specific savings account, or they can secure the mortgage against a percentage of their own property.
 
 
Looking for advice on your property circumstances? Get in touch today.
 
 



Things to consider when relocating

It may be really thrilling to contemplate relocating. Daily life might seem like an adventure when you first relocate. There will be fresh places to eat, nearby marketplaces to visit, and friends to make.
 
However, deciding whether to relocate to a new place is a significant choice, so think carefully before making the leap.
 
We will offer our advice on the key factors to take into account before relocating to a new area and purchasing a new home.
 
Do the transportation options meet your needs?
You undoubtedly travel about your community regularly, perhaps even every day. An area's suitability as a place to live can be greatly influenced by its transportation options. Consult the area recommendations on the website of your local estate agents to see whether the location fits your lifestyle.
 
Are the amenities in the area suitable?
Some people like to live close to a lot of facilities, including parks, shopping centres, colleges, and supermarkets. Others, however, might not consider these factors to be as significant. The facilities you desire in a location ultimately depend largely on your lifestyle. Researching the area and speaking with a knowledgeable estate agent are the greatest ways to learn about the surrounding benefits.
 
What are crime rates like?
It's a good idea to look into the local crime statistics if you have children, elderly relatives, or any other reason to be particularly worried about the crime rates in a certain area. This is possible online. Just keep in mind that the numbers might not be as alarming as they first appear, so it's a good idea to compare them to your current location before making a choice.
 
Can you afford it?
First, you need to establish whether you can afford to live in your chosen new area – and which type of property is best for your budget. The best way to do this is to get in touch with a local estate agent. With their help, you can understand what types of properties are available to suit your budget.
 
Have you been considering relocating? Get in touch to discuss selling and finding your next property today.
 
 



Range Meadow Close

An exceptionally well presented modern executive detached family residence, providing well appointed spacious four bedroomed and two bathroomed accommodation, particularly pleasant cul-de-sac situation within...
 
£700,000

Click here to read Range Meadow Close.



Glenn Moore Comedy

Glenn Moore, from critically acclaimed sketch duo Thunderbards, presents his debut hour, filled with smart jokes and offbeat gags.

Over 14s only.

Friday 28th October 2022, 19:30

Royal Spa Centre, Leamington Spa

Click here to read Glenn Moore Comedy.



Gordon Street

An opportunity to acquire a well presented mid terraced villa recently subject to improvement to an exceptionally high standard, providing two principal bedroomed accommodation with additional attic conversion and basement...
 
£375,000

Click here to read Gordon Street.



What are the key selling points of a home in 2022?

If you’re wondering how valuable your home is, knowing its most desirable assets is a good place to start. Estate agents know exactly which features are hot on the market right now, which is why they are highlighted in listings to make sure the property is easily spotted by suitable buyers.
 
Data from Rightmove suggests which features buyers are looking for in today’s market, by ranking the most popular ‘key words’ highlighted by estate agents to sell houses. Due to a change in working patterns, there has been a clear move towards garden offices, orangeries, summer houses, underfloor heating, bi-fold doors and open-plan rooms. If your house has any of these features to offer, your home could be extremely appealing to buyers in today’s market.
 
Take a look at the features that are highlighted to attract the most potential buyers in 2022.
 
Garden office
Working from home has become a new way of life, and this has caused many people to move entirely in search of better office space.
 
Advertising a spare room which is suitable for a home office with good ventilation, accessible outlets to plug in a computer setup and ample space for a desk will make your home extremely attractive to many buyers. The proportion of listings that mention garden offices, were found to be 11 times higher than a decade ago. That’s an increase of 1,046%!
 
Bi-fold doors
Rightmove reported a huge rise in demand for bi-fold doors, with a 589% increase in popularity compared to 10 years ago. The post-pandemic need for space is thought to be the driving force behind this feature becoming so sought-after, as this enables people to extend and diversify their living space.
 
Orangeries and summer houses
What sets orangeries apart from conservatories, is the bricks in place of glass. The name originates from where fruit trees were stored during the winter months, so that should tell you how cosy and warm these home extensions are. The number of property listings mentioning summer houses has also seen an increase, whereas greenhouses seem to have declined in popularity. Smaller windows allow for a more functional and dynamic space, allowing scope for multiple uses such as home offices, living rooms, and dining space.
 
Underfloor heating
Listings that feature underfloor heating jumped by 114%, as buyers search for more energy-efficient solutions to warm up the house.
 
Underfloor heating is a cleaner, smarter way to heat a home. Using radiant heat technology, under-floor heating gently warms people and objects in the room directly, from the ground up.
 
Open plan living
Open floor plans remain popular among families and busy households due to their better traffic flow and multifunctional spaces. The wide-open space is most desirable for those with larger families as the layout offers a grand communal area. Consider removing a wall that separates your kitchen from your dining room, and your listing will become more attractive to buyers looking for a family home.
 
Looking for advice on how you can improve your property before selling? Contact us today.