August Newsletter

How has Brexit created opportunity in the market?

Data released from Rightmove has shown that agreed house sales last month rose 6.1% from the same point last year, with every single region showing improvement. Considering the current climate of Brexit, could this upsurge in the property market actually be attributed to the relative political instability, rather than in spite of it?

It’s been another period of gigantic upheaval in British politics in regard to Brexit, but months of uncertainty have seemingly encouraged a spike in activity in a rush to beat the currently unstable deadline of October 31st. Buyers and sellers are therefore making something of a concerted effort to complete their property transactions within the next quarter.

Supporting this microcosm of activity in the market is the number of UK mortgage approvals which have also risen significantly. Approvals for house purchases rose to their highest level for two and a half years in July, with Howard Archer, chief economic adviser to the EY ITEM Club, stating that: “It is possible that mortgage activity is being lifted by some people looking to complete their house purchases before Brexit occurs on 31 October, given the major uncertainties surrounding the UK successfully leaving the EU with a deal.”

Speaking prior to recent developments in the House of Commons, CEO of reallymoving Rob Houghton says: “The outlook for the property market over the next three months is remarkably positive, considering the current political and economic context. The recent election of a new Prime Minister who is committed to leaving the EU on Halloween even if a deal isn’t reached could mean clouds are gathering on the horizon, but any impact on prices in the short term is likely to be mitigated by the urgency of home movers to complete deals in the next three months.”

The Hemel Triathlon is coming on Sunday 29th September

Join us on Sunday 29 September for the Hemel Hempstead Triathlon. Gear up for swimming, bike riding and a 5km run!

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The Hertfordshire Wedding Fair

The Hertfordshire Wedding Fair, St Albans is Hertfordshire's premier wedding fair and is the county's oldest county wide wedding fair.

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Property performance over the last decade

Now that we are in 2020, looking back at the previous decade can help to shine a light on what we are to expect next in the property market. New research from Proportunity – a new equity loan startup firm – has shone a light on which properties have increased the most in value from 2010 to 2020.

Surprisingly, terraced properties have seen the greatest rate of growth nationally – with an average growth of 3.05%, compared to 2.9%, 2.35% and 2.33% for semi-detached, flats and detached properties respectively.

London has seen the highest rate of growth with the region’s averages outperforming most other parts of the country, with terraced properties in the capital of the country proving to be an outstanding investment decision. In the year 2000, the average price for a terraced property stood at £127,833 in London, however by the end of 2019 this had risen to £499,178 – a startling 290% increase.

“The 2010s were marked by the after-effects of the financial crisis, and then by Brexit uncertainty,” Vadim Toader, founder and chief executive officer of Proportunity, says:

“Despite these headwinds, we have largely seen growth across the board, but the clear winner is terraced housing – or more specifically, terraced homes in London – with buyers likely attracted to their historic characteristics and charm, as well as their limited supply, compared to new builds.”

If you are considering investing into a property this year, then there are three key aspects to keep in mind in order to be successful;

1) Plan for success; know exactly who your audience will be when you let the property out, or sell it on.

2) Gain a mortgage in principle; this will enable you to move quickly as investment properties will often have heightened levels of competition around them.

3) Work with a good estate agent; a reputable agent will be able to advise you on everything from the right area to invest in, to the potential yields you will be able to reap.

Region Name	flat CAGR 2010-2019	terr CAGR 2010-2019	semi CAGR 2010-2019	detached CAGR 2010-2019
East Midlands	0.74%	1.78%	2.11%	2.25%
East of England	2.62%	3.47%	3.59%	3.07%
London	4.93%	5.07%	4.33%	3.06%
North East	-0.50%	0.08%	0.47%	0.67%
North West	-0.04%	1.07%	1.43%	1.21%
South East	2.49%	3.40%	3.41%	2.84%
South West	1.34%	2.19%	2.35%	2.18%
Wales	0.50%	0.90%	1.01%	1.20%
West Midlands	0.65%	1.52%	1.96%	1.91%
Yorkshire and The Humber	-0.12%	0.91%	1.30%	1.32%
England and Wales	2.35%	3.05%	2.90%	2.33%

Saving for a house deposit

For most of us, the most expensive thing that we ever purchase will be a property, and the prospect of saving for that all-important deposit can be rather daunting. However, the key to saving for that lump sum is simply good financial preparation and making a few changes to your outgoings which should reap big rewards. Take a look through our handy hints and tips and you’ll be in that new home in no time.

Speak to an expert
If you have made the decision that you are ready to buy a property, then an excellent first point-of-call would be to speak to an expert, be that a financial planner, mortgage advisor or a savings expert in your bank. It is important to get a detailed overview of your personal finances and speaking to an industry expert will provide you with tailored advice which suits your lifestyle, as well as being given some proven strategies to help you to save. Whether you’re a saver or a spender, it is important to get in to the right mindset to save and starting the process by speaking to an expert is a sensible first step.

Make a move
With the cost of renting often leaving many with little money to save for a deposit, making a temporary move can be a key factor in achieving a sufficient deposit. More and more people are moving back in with their parents for a period of 6 to 12 months; often paying no rent and economising through saving on laundry and food costs. If living with your parents is a truly unbearable prospect, then finding a lodger to live with you will also aid you in that all-important quest for a deposit.

Know your options
Did you know that you could buy a property with just a 5% deposit? Knowing what schemes and grants are out there will most certainly help you to achieve a house deposit. The Help-to-Buy shared equity scheme allows you to purchase a home with as little as 5% deposit and the government or developer (this is available for new homes only) lends you the rest of the deposit. Shared ownership schemes involve purchasing part of a property and then renting the rest, and although you would still need a deposit to get a mortgage for the part of the property you are buying, the deposit would be considerably lower; for example, to get a 90% mortgage on a 50% share of a £150,00 property, you would need only £7,500 for the deposit.

Make your savings work harder
Naturally, any changes you make will have one similar goal – to help you in saving more money more quickly and making these savings work for you should be a top priority. Open an ISA and use your yearly cash allowance so you don’t pay unnecessary tax. If you don’t already have one, open a savings account and save what you can, even if you think the amounts you are saving are inconsequential, they will soon amount to a worthwhile value. Shop around and see which bank offers the best interest rate on your savings, don’t just take one out with your current banking provider as finding a good interest rate could go a big way to helping you reach your goal faster.

Saving for a deposit can seem like a tall order, so making some sound financial decisions will be the key in to being approved for a mortgage and taking a step on to the property market. Get yourself into the right mindset where you are aware of why you are making some financial changes, remember that they are all short-term, and you’ll see those savings growing faster than you could have ever hoped.

Stamp Duty Holiday - What Has Changed?

In one of the biggest changes to the property market for some time, Chancellor Rishi Sunak has introduced a stamp duty holiday which is now in place and runs up until 31^st March 2021. This £4bn stimulus to the property market has been launched with a single purpose – to stimulate the market and encourage potential buyers onto the property ladder.

"The average stamp duty bill will fall by £4,500 and nearly nine out of 10 people buying a main home this year will pay no stamp duty at all," said Sunak in his summer statement.

For first-time buyers and existing homeowners, stamp duty rates are now as follows;

Property or lease premium or transfer value	SDLT rate
Up to £500,000	Zero
next £425,000 (the portion from £500,001 to £925,000)	5%
next £575,000 (the portion from £925,001 to £1.5 million)	10%
remaining amount (the portion above £1.5 million)	12%

For those who are buying a second home, or increasing their portfolio, stamp duty rates are now as follows;

Property or lease premium or transfer value	SDLT rate
Up to £500,000	3%
next £425,000 (the portion from £500,001 to £925,000)	8%
next £575,000 (the portion from £925,001 to £1.5 million)	13%
remaining amount (the portion above £1.5 million)	15%

The stamp duty holiday has been analysed by the TaxPayers’ Alliance, which estimates that the change could encourage 216,000 home moves.

John O’Connell, chief executive of the TaxPayers' Alliance, said: "Stamp duty is a terrible tax and this measure will help get Britain moving again, potentially unlocking hundreds of thousands of new moves.

“The tax gums up the housing market and locks down homeowners, at a time when many more people are ready to move. We estimate this tax cut could have an impressive effect on the housing market this year."

"The scale of these benefits show that the chancellor would be crazy to stop there. Raising the threshold further, or preferably just abolishing the tax completely, would build in huge benefits for homebuyers, productivity and the economy as a whole.”

Stamp Duty Announcement Causes Surge In Property Searches

One of the key announcements in the Chancellor’s summer statement was a holiday on stamp duty from 8^th July 2020 to 31^st March 2021, with first-time buyers and existing homeowners paying no stamp duty on purchases up to £500,000 during this period.

With potential savings of up to £15,000 available, it should come as no surprise that this change created an immediate surge in activity, with potential buyers seeking to make the most of the savings on offer.

Traffic to Rightmove jumped by 22% during the first 30 minutes of the announcement being made, demonstrating the efficacy of the announcement in providing a boost to the property market. With recent volumes of sales agreed increasing to levels seen in early March, the momentum which has been built following the easing of lockdown restrictions on the market should continue thanks to this impetus.

Savings by region can be seen in the table below;

Region	Avg asking price June 20	Stamp duty saving
North East	£157,291	£646
Yorkshire and The Humber	£202,502	£1,550
North West	£206,909	£1,638
East Midlands	£236,110	£2,222
West Midlands	£238,123	£2,262
South West	£321,996	£6,100
East of England	£363,066	£8,153
South East	£419,595	£10,980
London	£628,284	£15,000

The 5 Most Important Factors When Buying A Home

For many of us, when we decide to move to a new home there will be many factors to consider, which can range from new work commitments, to growing family needs or simply the need for better quality of life. A new survey from Broadband Choices has discovered the five key reasons as to why people select a location for their new home, which could form a useful list for current house-hunters.

Safety First

Whether you’re staying put or moving home, crime will always remain a key concern for the majority of us and with 84% of respondents to the Broadband Choices poll listing crime as a crucial factor this still rings true. Knowing that your home and possessions are in an area with low crime rates is obviously very attractive, with low crime rates correlating to strong house prices and the converse also true.

Commuting Commotion

Getting to and from work, as well as freely being able to see friends and family, is of course extremely important when deciding where we would like to live. Amongst correspondents, nearly three-quarters mentioned transport links as one of their decision points for a location to live within. Living within close proximity to a tube station, for example, can add £42,000 to the price of a home, according to research from Nationwide.

A Quality Connection

Unsurprisingly in these modern times, a strong internet connection which will allow broadband and television streaming services such as Netflix and Amazon Prime stands at third in the list of buyer priorities when searching for a new home. With 69% of people mentioning a strong internet connection in the poll, many of whom stating that they would pay over-the-odds for a property with guaranteed superfast broadband connection, it would seem that for home-sellers updating your broadband could actually help in the process of finding a buyer.

Top Of The Class

For those with families, schools are an extremely important consideration; with catchment areas and the competition around catchments for the best schools being an important factor for both families, and those planning on families in the long term. Just over half of correspondents listed schools as a deliberation in their home buying decision, with recent studies showing that homes in catchments for schools with Ofsted ratings of 1 can cost almost £40,000 more than those with Ofsted rating 2.

Shop Local

As well as transport links ranking highly in the list of priorities for buyers, local shops and amenities also place highly with just over a third of people stating that living close to shops and amenities is a significant factor in their property search.

Five Ways To Refresh Your Outdoor Space

Outdoor space has rarely been so prized as it is now, with searches for properties with gardens and patios now much higher than prior to the lockdown period. We have put together five simple and inexpensive ways that you can perk up your outdoor space, no matter how much (or indeed how little) you may have available.

Create Specific Areas

An effective way to transform your outdoor space is to create specific areas within your available area. Creating a seating area with screens, a bedding area with planters and adding hanging baskets further down your garden will create real depth as well as encouraging the use of these spaces. If you have less space available, think about using furniture which can be also be used as storage as well as items which can be folded away or stacked.

Lighting

Investing in lighting for your outdoor area will not only make it more attractive when the evenings set in, it will also encourage you to embrace the outdoors even when it is a little darker. Solar lighting is an affordable, effective and fuss-free way to add some ambience to your garden, patio, balcony or outdoor space – solar nets are particularly effective as the lights can be weaved through a trellis or on a fence.

Pots and Planters

If your outdoor space is a small patio or balcony area then using pots and planters is a great way to add some fresh flowers and foliage, making your space much more inviting. If your property is rented, then pots and planters are also really useful as you can take them with you when you move to a new property and you do not need to dig up a garden which could cause potential disputes. If you have more space available, add some hanging baskets to create different levels of interest across your garden.

Accessories

Although investing in soft furnishings and accessories can be a more pricey way to refresh your outdoor space, because the items are intended for outdoor use they tend to last longer and so can be a worthwhile investment. Bright pops of colour can be added to any size of space with cushions, beanbags, throws and adding candles to table areas will take your outdoor space to the next level.

Planting

Very few things will bring the outdoors to life as much as fresh plants and flowers – over the span of summer they also work out to being fairly inexpensive. Lavender is a particularly good option due to its hard-wearing nature and the gentle scent that is emitted. You can also purchase bedding packs of plants from most supermarkets and DIY stores, making them easy to find and inexpensive.

A basic guide to decorating

Flick through the pages of any magazine these days or scroll through the popular Pinterest app and you’re likely to see endless images of chic properties with timeless décor. For those of us that are blessed to be able to colour-match and accessorise effortlessly, this is an entirely attainable vision; however, for the rest of us who are a little more challenged in the decorating department, it can be tough to know where to start. Read through our basic guide to decorating and we will provide you with some guidelines which are sure to help you turn your home in to a real page-turner.

Start scheming
So, you have decided to revamp a room, you’re excited and you just want to get the paint brushes out but hold on…you need to take a moment and think about what you really want! Taking a moment or two to plan will help to ensure that the effort you’re going to is really worth it, and having an overall concept will hold all of the interior elements together. Ask yourself what you like and dislike about the room currently and how you want the room to feel - cool and trendy or warm and welcoming? These simple questions will help you to focus in on how you’d like the end result to be and using apps such as Pinterest or Instagram will help you to decide on overall concepts. Creating a mood board for the room will help to streamline your ideas and will serve as a reference throughout the entire decorating process.

Stay in neutral
It may seem like a safe or unimaginative option, but neutrals are timeless when it comes to decorating. When you have a neutral palette to work with, you can layer colours and textures on top of the basic colour scheme in order to achieve your desired look. With new trends popping up seemingly every other day, having a neutral colour scheme allows you to easily change the feel of your room simply by updating the accessories and soft furnishings. You can also add in vibrant pops of colour to lift your room when using a more neutral scheme, with accent pieces such as side tables and upholstery offering some interest in to your colour palette.

Softly, softly
Soft furnishings can put the va va voom in to your room! Having strong accent pieces, as well as coordinated soft furnishings such as curtains, throws, pillows and rugs create a more coherent and cohesive atmosphere in a room. Rotating which soft furnishings you have in your room seasonally works really well to make your room feel up-to-date and contemporary; for example, using a blue rug and pops of yellow during the longer winter months, or some glittery cushions for the festive period. These pops of colour and print will have the desired outcome of a tasteful and chic room.

Simplify
Don’t be scared to leave spaces empty in your room. Horror vacui, a fear of empty spaces, is evident in so much of today’s culture with a tendency to want to display all of our knick-knacks throughout our homes. When you have gone to the effort to stylishly decorate your room, don’t ruin the hard work by then adding in too many objects; instead, let your decorating do the talking for you. If you want to display some of your own items, then ensure to group them and use the rule of thirds; group three objects together in a display rather than two. Groupings of objects which vary in heights, shapes and textures but are related to one another are the most effective for displays; for example, grouping three candles which are different heights but are the same colour.

When renovating a room, it is easy to feel overwhelmed, which is frequently why we shy away from decorating. However, we would recommend taking your time, planning your renovations carefully with a budget and enjoying the process – updating your home will add value to your property, after all, as well as giving you a beautiful home to relax in after a tough day at work.

First time buyers' guide to making an offer

If you’re a first-time buyer and have begun the hunt for your first home, you may think that once you’ve found the right one you simply offer what they ask for; job done! However, when it comes to making an offer on a home, there’s a bit more work that should go into it than simply offering the price advertised.

You need to be confident when making an offer that you’re not going to be stung by an inflated asking price or take yourself out of the running by offering too low. To help you prepare, we’ve put together the following information to help you through this stage of the home buying process.

Get some advice
The first step and arguably most important step you need to take is speaking to an expert. If you’re a first-time buyer, then you probably don’t have a wealth of knowledge on how the market works and what you can and can’t afford. Get in touch with a mortgage advisor, get informed on how it all works and more importantly, find out what your price range is so when you do make a formal offer you can do so with confidence.

Research the local market
Once you know how much you’ll be able to spend, it’s time to get a better understanding of your local market. The more research the better. Take a look at what’s up for sale and find out what your budget will get you in each area.

Build a list of key features that your home will need, such as the number of bedrooms or a driveway. The chances of you moving into your dream property with your first move are somewhat slim; however, it’s important that you know what you’re looking for and how much it will cost you in each area.

It would be wise at this point to get in touch with a local estate agent. You can do as much research as possible, but a good local agent will always be a benefit as they will know the market like the back of their hand. This means that they can fill you in on what to expect from vendors and hopefully help you avoid any pitfalls.

Get out there and book some viewings
Now that you’ve done your research on what you want, what you can afford and what the market has to offer, it’s time to book some viewings and get out there. Things can move very quickly in the property market, so your previous work and research leading up to this point will come in handy as there’ll be no time wasted travelling to unsuitable areas or over-priced properties.

While viewing properties, be sure to check out the building's structure and not just its décor. Check for any damage such as cracks in walls or damp. Make sure you understand exactly what you’re getting into and have a good idea of the current state of the home as it can help form your offer.

When you find the right home, be ready to act!
If you’ve managed to find the right home, then it would be best to act quickly as there’s a good chance you’re not the only one eyeing up that house. If you’re ready to make an offer, consider a few things before doing so. How much do other similar properties go for in the area? Does the property need some repairs? Have house prices dropped slightly since the home was first put on the market? We’d all love to knock a few thousand off the asking price, but the seller isn’t going to make such a concession easily, so if your offer is lower than the asking price, you’ll need to demonstrate why.

The Final Steps
Now before you finally put your offer on the table, try and organise all the other pieces of the puzzle beforehand so you are ready to go as soon as it’s accepted. If you’re a first-time buyer then one of your major benefits is that you don’t have to organise selling your own home, but if you can organise such things as surveys and solicitors then it’ll make the process much smoother.

Puppet Theatre: Beastly Belle

Be charmed and surprised by a new twist on an old tale, inspired by the iconic era of 1920s and 30s cinema.

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The Serpent's Tale, hosted by Water Gardens

Join the wild and wonky May Queen to discover The Serpent's Tale - an original play on Saturday 28th September.

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Should you pay off your property's mortgage early?

New research from financial services firm Hargreaves Lansdown has shown that one in six of us who have purchased a property will either be over 65 by the time the mortgage is fully paid off, or the loan will never be fully paid off. The question stands, therefore, as to whether you should pay your mortgage off early or not?

As the average age of homeowners creeps upwards, and first-time buyers are entering the marketplace beyond 30 years old, the prospect of entering into retirement with a mortgage still to pay is going to be a reality for many. Research conducted by the Financial Conduct Authority supports this notion, with the FCA forecasting that 40% of first-time buyers in 2017 would still be repaying their home loans at 65.

First and foremost, do your sums to see whether you have anything to worry about in the first place. If you are going to be receiving a healthy pension anyway, then the prospect of continuing mortgage payments may not be anything to worry about. On the other hand, if you are going to be on a lower income than you’re currently accustomed to, then mortgage payments may well prove to be a stretch. If this is the case, here are a few options to help you pay that mortgage off sooner:

Overpay whilst you can
Speak with your mortgage provider to see when your prospective final payment is, and use this to incentivise yourself to pay early when you can afford it. Many mortgages will not charge you for overpaying, instead embracing the higher payments so double-check with your provider and overpay in order to bring forwards that final payment date.

Consider remortgaging
With interest rates at record-low levels, many borrowers are now considering remortgaging in order to obtain a more favourable mortgage. Eventually, you will be moved onto your lender’s standard variable rate (SVR) if you do not remortgage or move onto a different deal during your mortgage term. Avoid these less favourable mortgage rates which will extend your mortgage term, and you could slice years off your repayment schedule just by switching providers or plans.

Reduce your mortgage term
Rather than overpaying on your current mortgage plan, reassess your financial status to see what you can really afford now. You will most likely be in a different economic position now to when you first purchased your property, and potentially able to afford higher repayments. If this is the case, and you are likely to remain in a stable position for the foreseeable future, then reducing your term and increasing your monthly payments is a guaranteed way to pay off your mortgage more quickly.

Help to Buy - what are your options for purchasing a home?

If you’re a first-time buyer looking to purchase a property, then you’ll almost certainly be aware of the Help to Buy scheme and its success in helping people get onto the property ladder. What you may not be aware of is how the scheme works, and how it helps buyers to secure deposits for homes that would otherwise be out of their reach.

With that in mind, we’ve put together a rough guide to how Help to Buy works.

Can you get a sufficient deposit together?
Most standard mortgages require a deposit of at least 5% of the value of the home you want to purchase. If you are able to get the capital required, then you may not need to apply for any scheme.

Equity Loans
If your deposit doesn’t stretch that far, however, never fear! This is where Help to Buy comes in. If you have a 5% deposit, you can apply for an equity loan for purchasing new-build properties. The Government will lend you up to 20% of the property’s price, but you’ll have to start paying interest on that loan after five years.

For example, should you purchase a £200,000 house, you’d pay £10,000 (5%), get a mortgage for £150,000 (75%) and the Government would loan you the remaining £40,000 (20%).

ISAs
If you’re still saving for that all-important deposit, then a Help to Buy ISA is available to you, with the Government adding 25% on top of the value of your savings, with up to 2.6% interest tax-free. A word of caution; if you’re considering this option, then you would need to apply for your ISA prior to 30th November this year. Click here to learn more.

Shared Ownership
If you can’t stretch your finances to be able to afford the entirety of a mortgage, Shared Ownership provides you with the opportunity to buy a share of your home (between 25% and 75% of the property’s value) whilst paying rent on the remaining share. You can also buy bigger shares in the property once you’re able to, offering you flexibility for the future whilst owning a significant stake in the home you wanted.

Purchasing a home doesn’t have to be beyond any first-time buyer. Speak to our financial experts about your Help to Buy options and find out how you can finally buy the property of your dreams.

Tales From Beyond the Grave - performance workshop

Enjoy a spell-binding performance which brings local history to life this Saturday at Rectory Lane Cemetery.

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Just A Cappella Singing Group

Just A Cappella is a mixed voice group, who love singing in harmony together and are friendly and sociable.

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