Property Market Predictions For 2018, Top Tips For Designing Your Child's Bedroom, Plus More

Welcome to Wood & Pilcher's January newsletter.

In this month's edition, we share a selection of predictions for where the UK property market is heading in 2018 and a recent survey has discovered that 40% of buyers will decide whether or not to buy a property based on their first impressions.

Also this month, a surge in first-time buyers is expected in 2018 and we share some advice on how to design your child's bedroom.

Property Market Predictions For 2018

 

A new year has begun which means there are plenty of forecasts and opinions on how the property market will perform over the next 12 months.

We’ve taken a look at a variety of predictions from sources such as The Royal Institution of Chartered Surveyors (RICS), Halifax and Nationwide to see what the general outlook is for the UK’s housing market.

The overall view seems to be one of stability and while there are not many predictions of explosive growth, the majority are suggesting a more slow and steady increase in house values over the course of 2018.

The RICS forecast suggests that 2018 will see similar numbers in activity as shown in 2016 and 2017, with property transactions reaching approximately 1.2 million.

Tarrant Parsons, Economist for the RICS spoke on the results of their research. Parsons believes that lack of housing supply in some areas of the nation could continue to have an effect on property prices and possibly curb the momentum of transactions throughout the year.

It’s not all doom and gloom for those looking to take their first step on the property ladder, as Parsons went on to say that “despite the recent interest rate hike, mortgage rates are set to remain very favourable, with the prospect of further rises seemingly minimal over the coming year. Alongside this, government schemes such as Help to Buy should continue to provide some support to sales activity.”

This view of the market is shared by Nationwide, as their forecast predicts slow growth towards 1% in the early months, but long-term reaching an overall increase between 3-4%.

Chief Economist at Nationwide, Robert Gardner, believes that the UK could see disparities between the regions dependant on Brexit, he said “if the financial sector is adversely affected, then the London market is likely to see more of an impact, while if manufacturing firms are disadvantaged, other parts of the country may be more negatively affected, even though valuation metrics appear less stretched.”

New figures from Rightmove have predicted similar growth for the UK in general, however, they have also highlighted the difference between the types of houses on the market. Rightmove expects properties with 2 bedrooms or less – ideal for first-time buyers – to rise by 3% in value in 2018, while non detached homes with three or four bedrooms – more suited for second steppers – may only see an increase of 2% in value.

A new report from Halifax reiterates the slow and steady predictions seen from other industry experts as they claim “There is little reason to expect any fundamental shift in the key housing market drivers in the immediate future”.

Halifax predicts a slightly more positive outlook for the market, with many suggesting growth of 1%, Halifax believes that 3% growth is a more accurate forecast for UK property prices.

Russell Galley, Managing Director at Halifax, commented on their own findings: "House Prices, in general, are likely to be supported, seeing modest growth in 2018, through the combination of a shortage of properties for sale, continued low levels of housebuilding, low unemployment levels and finally good levels of affordability due to the low-interest-rate environment. Despite the recent rate rise, we do not expect this to have an adverse impact on transactions. A further rate rise is not seen as imminent and we may not see one until the latter part of 2018, if at all."

As always, there are many factors that could have an effect on the value of homes throughout the nation, but the opinion from most property experts is that the market will remain stable and while prices won’t be making any huge leaps over the next 12 months, the steady increases seen over the past few years look set to continue.

40% Of Buyers Will Decide To Buy Based On First Impressions Alone

 

 

As any estate agent can tell you, a successful sale hinges on a good first impression. Prospective buyers possess a sixth sense when it comes to viewing a property and if things aren’t up to scratch – inside and out – you can guarantee they will spot it.

In fact, a recent study has revealed that the average house hunter only needs eight minutes to decide if a property is for them or not.

Six in ten adults will also choose not to buy a property based on the condition of the property’s exterior without even needing to view the inside.

In comparison, 18% of buyers admitted to buying the very first property they view and 15% said they decided to buy the property before they had even viewed it in person.

This decisiveness extends online, with the average buyer spending eight minutes deciding whether or not to visit a property – highlighting the importance of a good online advert.

75% also confessed to being irritated upon finding that an advert or online listing does not accurately represent a property when visiting in person.

The study also revealed which aspects of a viewing signalled an early exit for many prospective buyers. The main offender was an obvious damp patch, which 60% of buyers said would put a stop to any future transaction, whilst a house on a main road or cracks in the wall would also put an end to the viewing.

For the buyers who are good at seeking out the problematic finer details of the property, there were some decisive reasons for buyers backing out of the viewing, such as dirty toilet pipes, overflowing bins, wheelie bins left in front of the property and faded or yellowed paintwork.

Some viewers take issue with a sellers lack of preparation for the viewing such as untidy rooms, poor DIY and ashtrays left around the house.

Other reasons included logistical problems such as the size of the rooms being too small for the buyer’s furniture and issues with the natural lighting of the property. The current owner’s furniture cluttering up the layout of a room, preventing the buyer’s imagination from running wild, led to over a third of buyers to back out of a purchase.

The list showcases the importance of sprucing up your home – both before putting it on the market and before every viewing. A prospective buyer needs to weigh up the additional costs and work involved in buying a property. Ensure you give your home the most generic makeover possible and organise your possessions and furniture in a way that won’t distract the prospective buyer.

Surge In First Time Buyers Forecast This Year

 

There are plenty of property market forecasts and predictions making the headlines around this time of year, as many are wondering how the market will perform throughout 2018.

Property analysis firm Hometrack has conducted their own research and produced a forecast for the next 12 months, with some surprising figures regarding first-time buyers.

According to their research, Hometrack expects first-time buyers to be the largest buyer group of 2018, predicting 35% of all sales this year to come from those taking their very first step onto the property ladder.

In comparison with forecasts from many other experts within the industry, first-time buyers would account for approximately 400,000 sales over the next 12 months.

With all the talk of an increasingly unaffordable market for first-time buyers, this prediction is somewhat surprising; however, the growth within this group could be attributed to the recent scrapping of stamp duty for anyone buying a house for the first time, saving buyers thousands of pounds when making a purchase.

Insight Director at Hometrack, Richard Donnell, offered his thoughts on the 2018 forecasts,“We expect first-time buyer numbers to continue to grow in regional housing markets where affordability is more attractive. First-time buyer numbers have fallen by 10% in London over the last three years as affordability pressures limit access to the market.”

Existing homeowners are the second largest buyer group, only overtaken by first-time buyers by a small margin, accounting for 34% of sales in 2018.

Hometrack’s report has shown that transactions in 2017 took a slight drop in the capital, however, other large cities such as Manchester, Birmingham and Glasgow saw a rise in activity between 6% and 8% across the last year.

It is expected that the other regions will continue to offset the London market and for the UK as a whole, the report predicts an average growth of 3% with the largest cities in the UK expected to record 5% growth in value.

Designing Your Child’s Room: Things To Consider

 

Designing a child’s room can be tricky. There are a number of factors to consider which can make it hard to know where to begin. Design trends are forever changing and your child is constantly growing, so it is important that you consider a few things before starting.

Striking the balance between fun and practical is a challenge and designing something that your child does not grow out of too quickly is not easy, but by taking the time to think it over you can save yourself a lot of hassle and create a space that is fun for them and easy for you to manage.

Draw up a floor plan

Before you start buying all sorts of cute and colourful furniture, it’s important to remember that depending on your child’s age, this room could have a variety of functions.

Have a think about what the room will be used for and draw out a plan. If the room just needs to be a comfortable place to sleep then you should have plenty of freedom. If it also needs to be an area to play and study, you’ll require a good amount of floor space and maybe a clear corner for a desk.

Everyone’s home and preferences are different but you want to get as much out of the space as possible, so take a moment to consider the role that the room will play and how it may change over the next few years.

Choose the right colour

It may be tempting to simply ask your child what their favourite colour is and then start buying paint or wallpaper.

While it is a good idea to include your child in the design of their room, if their favourite colour resembles a highlighter pen, then your best option is to go with the more neutral shade of that colour.

Your best strategy is to aim for a colour palette that nicely blends with a variety of furniture and will not look so childish once your child turns into a teen. Save yourself a redecoration job in 18 months by picking a colour that will age well with the rest of the ever-changing décor.

Decide on the flooring

When it comes to flooring you have a few options, all with their pros and cons, so you just have to decide which will be best for you.

Carpet helps keep the room a little warmer but is vulnerable to stains. Hardwood is much more durable and easy to clean but doesn't make a good cushion for younger children learning to walk.

 

You could also opt for rubber flooring that does offer the benefits of both carpet and hardwood; however, it is the most expensive option of the three.

The flooring that is best for you is dependent on the age of your child, but research your options while keeping your budget in mind and make sure your choice of flooring compliments the room and doesn’t break the bank.

Getting the furniture right

There are two key things to keep in mind when choosing your furniture: functionality and lifespan.

We’ve already established that space is a valuable commodity so finding multifunctional furniture can be a real lifesaver.

Beds that have storage built in underneath are quite easy to find and the extra storage they provide can go a long way, as well as free up more of the room for other essential items. This also gives you an opportunity to get creative and look for ways to combine two items into one, such as adding some padding to a desk or dresser so that it also can be used as a changing table.

The other consideration for furniture is its lifespan. There are a lot of cute miniature beds, tables and chairs that might look great, but you must remember that children will outgrow them quickly. A good strategy would be to buy some furniture that they can grow into. Their small clothes may not justify a full sized dresser just yet, but it will not be long before you are looking for extra storage space.

Add character with accessories

Now that your room has been planned out, you have chosen your colour palette, had the flooring fitted, assembled and placed the furniture, it’s time to add character.

The great part about this phase of designing the room is that because the rest of the room's features were kept neutral and timeless, you can now give your child a good amount of freedom to add their own personality to the room from accessories.

Whether it’s action figures, bed covers or posters, you can basically style the room however they want and the best part is, these accessories can be easily replaced and changed over the years at the same rate as your child’s taste in décor shifts from one thing to the next.