Five Property Selling Myths, How to Secure Your Home this Summer, Plus More

Welcome to the June edition of the Wood & Pilcher newsletter.

This month, residential sales are up by 20%, we reveal why landlords are becoming increasingly reliant on letting agents, we share the five most common property myths, and we share top tips on how to secure your home this summer.

Residential Sales Up By 20% in April Year on Year

 During the month of April 2017 the UK saw a total of 99,910 residential transactions resulting in a huge 20.3% rise in transactions when compared to the same time last year.

In addition to residential transactions almost breaking the 100,000 mark, the month of April also saw 9,980 non-residential sales according to recent data released by HMRC.

It was also revealed in the latest information published by HMRC, that overall transactions are down 3.2% in comparison to the previous month, however, the current number of transactions are still seen as strong progress for the UK property market.

This large leap in transactions could be attributed to the introduction of extra stamp duty land tax in April 2016, which certainly had a dampening effect on the market at the time. While some may have anticipated a further slowdown in transactions in April of this year due to the tax changes for landlords, recent statistics show the resilience of the market.

Former RICS Residential Chairman, Jeremy Leaf, spoke on the statistics “At first glance one might think these figures are hugely disappointing but when you consider what was happening this time last year and what has happened to property transactions in the past few months, they represent steady progress for the housing market".

“Transaction numbers are really key to what is going on in the market - how many people are actually getting on with the business of moving - and these numbers suggest some resilience.”

When looking at recent years, it is not entirely uncommon to see a slight drop in activity between the months of March and April, with some statistics indicating that the lower number of transactions is a seasonal trend.

Head of Lending for Mortgage Advice Bureau, Brian Murphy, suggests that the 3.2% fall from month to month is business as usual, he said “One could suggest that the decrease in transactions between March 2017 and April 2017 is normal, and in line with usual seasonal expectations.”

“Overall, transaction levels to date in 2017 are up by 5.5% on the same period in 2015. Reviewing previous data, we can also see that there was also a decrease in transactions between March and April in 2015. Buy-to-let anomaly of 2016 aside, there was a drop off in transactions between March and April last year too.”

With the Brexit negotiations still to come, similar activity over the coming months would certainly come as no surprise, however, some experts believe that times of economic uncertainty bring opportunity and potential buyers should assess their options.

Stephen Wasserman, MD at West One Loans, believes the property sector will always ‘bounce back’ and that borrowers should educate themselves on all the options available to them. Wasserman commented “Nevertheless, we’re confident the sector will bounce back. Although the market is resilient, during times of prolonged economic uncertainty it is important that borrowers are aware of the range of financing available. Flexible borrowing options, such as bridging loans, can help to speed up the transaction, enabling buyers to move faster and capitalise on opportunities in this uncertain environment”

Landlords Are Becoming Increasingly Reliant on Letting Agents

 A new survey has revealed that the proportion of landlords in the UK who use a letting agent to help manage their property has taken a sharp rise.

In a recent survey of 750 landlords, the National Landlords Association (NLA) found that in Q4 of 2016, there was a 7% rise in the number of landlords who chose to use a letting agent, taking the total to 61%.

The NLA describes the recent rise as a ‘break from the norm’ as over the last 2 years the number of landlords who use an agent has hovered around the 50% mark, only rising by 1% between 2014 and 2016.

It was found that agent usage by region is the highest in Scotland with 79% of landlords choosing to rely on agents and the North East tops the table for the highest agent usage in England, however, London, the South West and Wales have all seen significant increases.

The report indicates that the reason for increasing reliance on lettings agents is due to the variety of changes introduced over the last year that have affected landlords businesses. Rises to stamp duty, changes to taxation for landlords and bans placed on charging fees to tenants has added strain to landlords businesses and they now seek professional help when it comes to managing their portfolio.

NLA CEO, Richard Lambert, commented on the findings for the research, stating that ‘As landlords plan ahead to compensate for the tax changes over the next few years we would expect to see the number who use an agent to slowly fall away, and for more to start considering whether they are able to manage their properties themselves,’

Lambert added ‘However, this sudden spike, which is completely out of step with recent trends, completely turns this theory on its head. The big question is whether or not it’s a blip or if it will continue to rise.’

Five Property Selling Myths

 If you’ve recently decided to sell your home, then you have probably already asked for advice from family and friends on how to get it all wrapped up smoothly and quickly. While there are plenty of great tips out there on how to maximise the appeal of your home, there are also a few myths that seem to be passed around from time to time.

Luckily for you we’re here to fill you in on some of the selling tips that may not be 100% true or just wrong all together. So here are our top 5 property selling myths busted.

You get out what you put in
A property purchase is an investment, but that doesn’t mean you need to sink every penny of your income into it. Upgrading or renovating areas of your home - in most cases - increase the value of your home. However, renovations are not sure fire profit. Just because you put £3,000 into doing up your kitchen, it doesn’t mean you’ve added £7-10,000 to the value of your home. Also, if your taste in design is somewhat ‘unique’ then there may be a chance that you’ve turned one room from a generic blank slate, into a buyer’s worst nightmare. The key to putting money into your home is to focus on function and not fashion. Install any missing modern home features, but don’t burn through cash trying to wow potential buyers with your design skills.

You should always aim high
This one isn’t necessarily specific to the property market, but it’s a fairly mainstream belief that whenever you’re negotiating you start high and let them try and work you down to something more realistic. While this may be a good tactic in some situations, when selling a home, you have to keep in mind just how competitive the market actually is. When buyers search for a home they are more likely to look for properties priced below their maximum budget so they can try and bring the price down further. If your home is priced unnecessarily high, then it won’t even show up on some buyers' radar and you’ll be harming your chances of booking viewings.

Timing is everything
This is one of those half true tips. It is true that Spring is a good time to put your home on the market, the market is busier that time of year and there are smaller benefits such as the return of nice weather that improves the look of any home. But just because Spring is a good time to be on the market, this doesn’t mean that the rest of the year is a poor time to sell. Realistically, people are looking at homes throughout the year and there are plenty of factors that contribute to someone’s decision to move home. There is a chance you may receive more interest during the warmer months of the year, but if someone is willing to make an offer that’s right for you at another time, then there’s no point in delaying a move 3-6 months.

It’s the interior that really matters
This is another half-truth, the interior of your home is obviously quite important when trying to sell your home. However, the exterior also plays a large role. The exterior is your home's first impression, so don’t just assume that every buyer is going to take the ‘don’t judge a book by its cover’ approach to property. This doesn’t mean that you need to go all out by laying a new driveway and installing water features, but making sure the front garden is kept in good shape and doors or windows have a fresh coat of paint can go a long way in getting people in the door in the first place.

Buyers love a fixer upper because they’re such a bargain
Although this may seem a bit of a contradiction to our earlier point, when you’re planning to sell your home, it’s important that you invest the right amount of money to help get it off the market. All buyers love a bargain and in today’s DIY world some buyers will consider a fixer upper, but that is entirely dependent on what they actually need to fix. There’s a big difference between putting up a few extra shelves and repairing some faulty plumbing. You might get lucky and find a buyer that doesn’t mind getting stuck into all of it, but the longer your list of repairs is, the shorter your list of potential buyers will be. 

How to Secure Your Home this Summer

 Going away somewhere nice? Whilst you’re relaxing on a sunny beach, there will always be a part of your mind that stresses about the safety of the house. Remove the added stress of “will the house be ok?” by following these top tips for securing your home.

1. Alarm home intruders
60% of home invasions attempted on a home with a house alarm fail, according to research by Yale locks. House alarm technology has made massive leaps forward in recent years. Some smart alarms can be controlled by your smart phone and feature a camera so you can see why the alarm has been triggered.

2. Make it look like someone is home
Ensure you mow the grass before heading off on holiday, remove clothes from the washing line and visible airers. It’s also a good idea to leave your curtains open, so that the house looks open.

Using similar Smart products, it is possible to make it look like someone is home. You can control the lights in your home from your phone. If this is out of your price range, park the car on the drive or invest in security lighting.

3. Turn it off

Make sure you turn everything off at the socket and unplug it (except the trusty fridge!) By doing this you reduce the risk of a fire and lower your energy bills whilst you are away.

4. Don’t broadcast your absence
These days, posting on social media is as much a part of a holiday as sun cream and ice cream. However, by posting online you let everyone know that you’re not home. Try to resist posting those photos and gloating statuses until you get home.

5. Post Pile-Up
A huge pile of post is a major give away for potential thieves. It’s unlikely you can get someone to come round every day to pick up the mail, so why not take advantage of the Royal Mail’s KeepSafe scheme? They can hold onto your mail for up to 66 days whilst you’re away, then you can schedule for them to deliver at a date to suit you.

6. Lock the door!
Sounds obvious? You’ll probably be plagued by the irrational fear that you’ve not locked all the doors and windows for the entirety of the holiday. Make sure you lock and deadbolt the door (leaving through the back) and make sure you lock up the garage. If you have some money going spare, you could invest in smart locks which require a pin and can be locked by remote.