49% of Property Purchasers are First Time Buyers, Amount Required for Living Near a Good School Revealed, Plus More

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

This month, 49% of property purchasers are first-time buyers, the amount parents pay to live near a good school has been revealed, the majority of UK homeowners are planning on adding smart technology to their homes in the future and we share our guide to fighting condensation in your home.

49% Of Property Purchasers are First Time Buyers

 

 

It appears that the continuing rise in house prices and numerous reports on affordability have not deterred first-time buyers from entering the market.

According to new research from Connells, 49% of all property purchase valuations carried out in July were made on behalf of first-time buyers, a figure which has risen 6% on the five-year average.

The latest Survey and Valuation report from Connells detailed a considerable rise in transactions from first-time buyers as it showed 36,000 loans taken out in the month of June, this is the highest number seen from the demographic in 11 years with a huge 22% month-on-month rise and 6% year-on-year.

Corporate Services Director, John Bagshaw, commented on the findings of the report, stating that “Demand from first-time buyers is supporting the housing market at the moment. People are eager to get on the property ladder, with record high employment and competitive mortgage rates. But this doesn’t mean it’s an easy task to get a foothold in the market. Economic conditions are still tough”

Bagshaw suggests that while many first-time buyers are eager to get on the housing ladder, the market can still be tough and feels they should receive further assistance; “With the value of a typical property rising &10,000 in a year, first-time buyers still need help. Perhaps they could be given an exemption from stamp duty”

This recent report also shows that there has been a small drop in new landlords entering the market, and suggests that “Government policies, including the stamp-duty surcharge and reduction in buy-to-let mortgage relief” have most likely made potential new property investors slightly hesitant to get involved in the buy to let market.

“People are still investing in the buy to let sector, but they’re typically existing landlords looking to expand their portfolio and increase profits to offset increasing tax bills. But the stamp duty surcharge, combined with the reduction in buy to let mortgage tax relief is potentially dissuading new small-scale, amateur landlords from entering the market,” Bagshaw added.

The property market has also seen a rise in remortgaging to 36%, 10% higher than the five-year average as consumers are securing more long-term fixed rate deals as they take advantage of the competition amongst lenders when refinancing their home.

How Much are Parents Willing to Pay to Live Close to a Good School?

 

 

British parents are prepared to do whatever it takes to get their children into a new school, including moving into a new home, according to a recent study by Santander.

One in four parents with school-age children said they had either bought a new home, or rented one, in order to be in their desired school’s catchment area, with an additional 20% saying they were forced to change jobs. 44% of those asked said they would leave the area once their child had finished school.

Anyone who has tried to register their child for a new school will know how competitive it can be if the school has a good OFSTED rating and is well-regarded in your local area. Parents are willing to do whatever it takes to secure their child a spot.

Whilst this might seem like a big step to take – especially in terms of cost – the only other option is educating your child privately, which carries a considerably higher price tag.

The demand for property within the catchment areas of sought-after schools means existing homeowners and those who are only choosing to move to the area temporarily can charge a significant premium should they decide to sell.

Half of those who made the move said they sold their home and purchased a new one, 30% said they bought a second home and 19% chose to rent.

The average premium added to the price of a London property in a good catchment area was a shocking &81,800, followed by those in the south-east and east which both commanded just under &29,000.

Northern Ireland is the cheapest location for making a catchment move, with those properties worth &6,400, while parents in Wales paid an extra &12,100 and those in Yorkshire paid &15,800.

75% of Homeowners Plan on Adding More Smart Technology to Their Home

 

 

Whilst advancements in technology might seem like a phrase reserved for driverless cars and artificial intelligence, the most common futuristic tools you are likely to come across are available as smart upgrades for your home.

The British public has a long-running love affair with the latest gadget set to revolutionise the way they work and play around the home, so it’s no surprise that a recent survey by energy provider E.ON found that the majority of British homeowners plan on introducing more smart technology into their homes.

73% of those asked stated they were hoping to invest in smart technology in the future. When asked to specify the type of smart technology they were interested in, participants cited solar panels and/or an electric battery storage system (44%), smart lighting (35%), a voice-controlled smart hub (20%) and a charging port for an electric car (13%).

The majority of those asked have stated that they have already taken steps to modernise their home, with 34% saying they planned to upgrade further. When it came to their motives, 59% stated that saving money was their reason for upgrading, 55% said they were looking to be more energy efficient and 38% stated they were looking to save time completing household tasks.

48% stated that smart technology made their lives easier, 13% claimed they were seeking to make their home more fun and 6% desired a more modern and better-looking home.

Whilst solar technology is the most desired upgrade, there are still a number of misconceptions that continue to influence people’s idea of the sector. 17% of those questioned mistakenly believed solar panels only function on sunny days, whilst a further 11% wrongly believed that solar panels do not work in cold weather.

Of those who have already installed panels, 65% said their home is more energy efficient and 30% said that the value of their property had increased. 41% said they would be more likely to buy a home if it had solar panels installed.

Head of commercial solutions at E.ON Gavin Stokes said, ‘It’s really heartening that three-quarters of households have already taken steps to make their homes smarter. But with a quarter of people saying they’re yet to take steps to make their homes more solutions savvy, there’s still much we can do to help people realise the benefits a smarter lifestyle can bring. Many of the people we spoke to are already aware of the benefits solar and battery systems can bring, from saving money to having a more energy efficient home to making homes more appealing to buyers,’ he added.

Preventing Condensation in Your Home

 

If allowed to enter your home unchecked, dampness can cause untold damage to your property, possessions, and even to your health. Dampness can be expensive to remove, and at the very least, causes an unpleasant and lingering musty smell.

Condensation is just one form of dampness but it is the most common and often most ignored. During summer, your guard is down. How can my house be affected by condensation when it is a problem typically associated with cold weather?

The truth is that condensation can be caused by changing temperatures that occur within your household, and not just outside of it.

Kitchens, bathrooms, and attics are more susceptible to this problem due to there being higher chances of steam or inadequate ventilation in these rooms.

So before your condensation issue escalates into a full-blown black mould problem, we have a few recommendations for you that can keep your home, health, and happiness better protected.

Know the signs

Nip your condensation problem in the bud by keeping an eye out for:

1. Excess water on your window sills
2. Peeling paint or plaster
3. Mould on clothes or fabrics
4. Musty smells
5. Presence of black mould

Unfortunately, by the time that some condensation warning signs are discernible, the damage can already be quite extensive, and that’s why it’s best to take a preventative rather than a reactive approach.

Our suggestions

When facing difficulties with condensation, good ventilation is key.

Give your house plenty of room to breathe. Leave small gaps between your furniture and walls, don’t cram too much into too tight of a space – as air will not be able to circulate efficiently – and hang wet laundry outside.

It is essential that your kitchen is properly ventilated whilst you are cooking! Cover pots and pans, and make use of your extractor fan. Don’t have one? Invest now and save yourself a bigger bill later on. It’s also important to have properly ventilated washing machines and tumble dryers.

If able, close your kitchen door when cooking or boiling a kettle. This may seem excessive but it will stop condensation spreading from room to room.

As for your bathroom, keep your windows open during and after baths or showers. Again, invest in an extractor fan if you have a windowless bathroom. Mould growth will thrive in this environment, and without proper bathroom ventilation, you risk breathing in these harmful spores.

Say no to condensation

Whether you are trying to sell your house, or simply live in it, condensation must be dealt with before the problem progresses beyond your control.

Ventilate your home following our suggestions and provide a cleaner, healthier environment for yourself and your household.