This month's property update!

UK house prices make a stable start to 2023

House prices are not as important as many analysts like to suggest! If you are selling, you may get a little less, and if you are buying, you may pay a little less. Equally, if prices rise, you may get more for the home you place on the market, but then the house you buy will cost you more!

 

However, house prices give a good indicator as to the state of the UK property market. What we really want is stability, and it appears that after years of soaring prices, there is evidence to suggest that the property market is reaching a plateau.

 

According to the Halifax, average house prices in January 2023 have hardly changed since December 2022, while average house prices are still £5000 higher than in January 2022.*

 

Price growth and price increase are not the same

What appears to be happening is a dip in growth, which is very different from a dip in prices. It’s no secret that prices have increased a bit too rapidly over the past few years. A softer, slower market is a more stable market. Buying a home is a long-term investment, and slow and steady wins the race! Some analysts shout "crash" like a nervous passenger in the front seat of a speeding car, but now that the market is driving forward at a slower pace, a crash is unlikely.

 

The law of averages

Many of the figures and stats we hear about are based on averages. It’s important to take these with a rather large pinch of salt! If you are a first-time buyer or looking to move, when you turn on the news and hear the average house price in the UK, you may feel somewhat intimidated, perhaps even frightened! For example, in November 2022, the average price of a property in England was £315,073.** However, there is no substitute for getting online, talking to your agent, and exploring physical viewings to see how far your money can really go!

 

The market is settling down

Another good sign that the market is settling down is the return of more competitive mortgage interest rates. Many lenders are now offering deals hovering around the 4% mark. Stable house prices and stable lending rates create nicer conditions for settling down in the home you want.

 

You accept the price, but you love your house

Price is something you must accept when selling or buying. Who knows, you may love the price if it’s right! Ultimately, you are investing your time and emotion in a house that you want to be the best version of your home. House prices in the long term will inevitably rise, and you don’t want to accept anything less than the right home.

 

To see how much property, you can really get for your money, get in touch.

 

 

Halifax*Office for National Statistics**

Can’t wait to on get on the property ladder?

Getting on the property ladder is all about getting started, and there are so many ways to do just that. With so much to spend your money on, whether it’s traveling, socializing, or all of the above. Finding the means of saving a deposit is no mean feat. A growing proportion of first-time buyers are now choosing to buy with friends. The process is a little more complicated, so it’s important to go about things the right way.

 

You can buy with up to four people

Up to four people can put their names on the deed, so even if you're a far cry from getting together a large enough deposit to buy a home completely independently, you could be closer to owning your first home than you think.

 

Tenants in common

This is the most popular form of agreement and allows each person you buy a property with to own different shares in the property, and you can pass on your share of the property in your will. This differs from "joint tenants," which means you have equal rights to the entire property and can’t pass on your share in a will.

 

The less, the merrier!

Perhaps you believe that the more, the merrier! It certainly will reduce the cost of your mortgage payments. However, it’s worth noting that if one of your house co-owners can’t pay their share of the mortgage, then the rest of you are liable. Needless to say, the fewer people involved, the simpler the arrangements.

 

Borrowing

Most high-street lenders will gladly lend to two buyers; however, the options for mortgages with four buyers are more limited.

 

Have an exit plan

It’s important to set out in a contract a good get-out clause covering the circumstances in which the property can be sold. Include how the profits from such a sale would be divided if certain individuals invested in its development, as well as anything else you feel is relevant. Then, when the time comes to sell up and buy your own house independently, the process is as seamless as possible.

 

Finding the right home

It’s important to find the right home that everybody is going to be happy with. Location is key to keeping the peace. The minor details of bedroom allocation are critical when purchasing a home in which you and your co-owners will be happy and thrive.

 

The doorway to owning your own home

Buying a home with your friends is a great way of rapidly speeding up your next steps on the property ladder. Taking house prices out of the equation, as you pay your mortgage and build up equity, you are effectively saving a deposit for your own home.

 

Find a great home for you and your friends and get on the property ladder now! Browse our properties.

Buy-to-let investments. The perfect pension option!

Whether you are planning on retiring early, late, or not at all, investing in property is a very effective way to build a substantial retirement fund! The old saying is true: You only get out of life what you give. While it’s true that it requires more effort and organisation to prop up your pension fund with property, the benefits are well worth it.

 

Things to consider

There is little doubt that purchasing a house takes much more effort than simply paying a monthly figure into a pension fund. So here are a few things to keep in mind.

 

Buy in the right location

Location and understanding the market you are investing in are essential. You want to protect your investment, ideally enjoy good growth, and have a reliable and regular stream of rent. So do your research and invest in a property that will give you all these things in spades.

 

Stamp duty

When you purchase an additional property, you will pay 3% on top of the normal stamp duty rate.

 

You will need a 25% deposit

Applying for a buy-to-let mortgage is a little different from a conventional mortgage. Firstly, you typically need a 25% deposit. Many landlords also opt for an interest-only mortgage to keep monthly payments to a minimum. Then repay at the end of the term of the mortgage or make overpayments on the balance throughout the lifespan of the mortgage. The amount you can borrow is also based on what rent you can charge tenants, not what you earn. However, your lender will also take into consideration your income.

 

Lettings agent

A good lettings agent will make your life so much easier. There are plenty of options for levels of service. You may decide on a fully managed service or a basic level. The costs are relatively low, ranging from 10-15% of your monthly rental income.

 

The rewards

You gain more control over your pension when you invest in property, and the rewards compared with a conventional pension fund are greater and more tangible.

 

Good old bricks and mortar!

A good, solid investment in something as tangible as property is a pragmatic choice when it comes to long-term resilience. Stocks and shares can both fall and rise at the drop of a hat!

 

Property prices are on the long-term ascent

In the long term, property prices tend to rise. If you want proof, you only have to look into the past. While prices can fluctuate in the short term, in the long term they steadily grow, increasing the value of your retirement fund.

 

Rental income

The value of your pension will increase as you pay your buy-to-let mortgage. Adding to this, any increases in the value of your property and rental income and you are well on your way to creating a substantial retirement fund. To achieve this, investing wisely is key, so that your monthly rent exceeds your monthly costs and a profit is made.

 

A versatile investment

Investing in property gives you more options. For example, if you want to release equity, your property investment should recover more rapidly than paying into a conventional pension plan. It's good to know when you need to get your hands on some cash. Owning an animate object to gift to loved ones will keep you busy while enjoying a project, hobby, and solid investment. Property can be a fun and interesting way to prepare for your retirement.

 

Looking for the ideal property investment to secure your future? Contact us to see how we can help.

 

Energy-efficient homes are in big demand - Here’s how you can improve yours

Unlike many other things in your life, when it comes to your home, there is a lot you can do to save on energy costs. Food costs are spiralling, and while you can grow some things, it’s most likely you can’t grow all you want. The price of cars has also gone up, as have the prices of many other consumables and raw materials, and yet again, there is not much you can do about it.

 

Many of us lament the cost-of-living crisis and feel helpless in the face of such adversity. So here are some quick fixes and big improvements you can undertake to increase the energy efficiency of your home while at the same time adding to its value.

 

Quick fixes

• Install a smart meter: this can be supplied by your energy provider, so you can see exactly how much energy you use.
• Loft insulation: this is a simple way to keep heat from escaping your home and can save you a lot of money on heating bills. It is something you could do yourself with the right protective equipment, but don’t fall through the roof! Perhaps you don’t feel up to it after all? Don’t worry; there are many specialists who can do this for you.
• Collect rainwater for the garden: by collecting rainwater in your garden in a butt, a barrel or an all-singing, all-dancing water tank complete with a pump. Whichever you choose, you are making your garden greener by harvesting rainwater!
• Low-flow showerhead: you can buy one of these for less than £20 and install it in minutes by simply unscrewing your old showerhead and replacing it. Being more efficient could mean you use your boiler a little less, too.
• Energy-efficient light bulbs: they might be a little more expensive, but they will save up to 80% on energy use and last up to ten years!

Big improvements

• Install a new boiler: improve your energy performance certificate with a new boiler. Having an old boiler will put buyers off, and the value of your home will increase sufficiently to cover the costs of a new boiler.
• Air source heat pump: with government grants making this option more affordable, heat pumps are becoming more popular. British Gas offers a complete fitting service.
• Triple-glazed windows: this will improve your home's energy rating further. Your home loses a lot of energy as heat escapes through the windows. When they are clean, windows allow a lot of heat from the sun to enter. Triple-glazed windows trap that heat more efficiently, saving you money on the energy you use to heat your home.
• Photovoltaic solar panels: as solar panels become more popular, we are all becoming more aware of them. Less well-known are photovoltaic solar panels, which work even when it’s cloudy—perfect for the UK! Did you know you could sell the electricity they generate back to your local energy supplier, potentially making them pay for themselves?
• Hot water solar panels: placed on the roof like traditional solar panels, they heat the water for your shower, bath, and kitchen sink!
• Install a wind turbine: we see them dotted all over the countryside, but perhaps surprisingly, you can buy smaller versions for your home that will create enough electricity to run your entire home.

Find a good deal

Many of these quick fixes and bigger home improvements are eligible for government assistance depending on different criteria, and there are some good deals to be had with energy suppliers and local businesses, so it’s always worth a look online to check out the latest deals.

 

Looking to move to a more energy-efficient home? Want to know how much value you have added by improving the energy efficiency of your home? Book a valuation.

 

Cardiff's Craft & Flea

Shop small and shop local in our authentic twist on the traditional craft market with a huge selection of products from illustration to vintage bric-a-brac, plants to jewellery, sustainable products to food, ceramics to candles and so much more!

 

Date and time: Sun, 2 Apr 2023 10:00 - 16:00 BST

Click here to read Cardiff's Craft & Flea.