October Newsletter: First-time buyer activity busiest for almost a decade

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!

Click here to read The Hemel Triathlon is coming on Sunday 29th September.

First-time buyer activity busiest for almost a decade

 

According to a new report from Zoopla, first-time buyers are continuing to prop up the property market in 2019, with this group responsible for the majority of property purchases this year. Thanks to favourable mortgage rates, as well as more flexible mortgages including a higher loan-to-value ratio, first-time buyers are now in a more favourable position than ever to purchase a property.

It would appear that rather than the current train of thought, which would suggest that first-time buyers are doing anything they can in order to join the market, the reality is that they are taking a much more considered approach. Typically, first-time buyers are looking for three bedroom properties which will provide them with a longer term home to grow into which is a stark contrast to previous generations who began with a “starter property” which they quickly moved out of in order to purchase something larger.

Since 2010, first-time buyers as a group have grown by 85%, according to statistics from UK Finance, and this trend is not stemming.

“First time buyers have been the driving force behind the housing sales market in recent years. Lower mortgage rates, and improving mortgage availability have supported the growth in FTB numbers across the country” explains Richard Donnell, research and insight director at Zoopla.

“Despite increased barriers from high house prices in southern England and mortgage regulations, the appetite to buy their first home remains strong. Whilst the outlook is more challenging in London, growth in FTB volumes is expected to be driven in regional markets where affordability remains attractive, supported by greater availability of higher loan to value mortgages,” he continues.

Old Town Halloween Party @ Gadebridge Park, Sun 27th October

A frightfully good evening of tricks, treats, fun fair, food and fireworks is on offer as Hemel Old Town celebrates Halloween in style.

Click here to read Old Town Halloween Party @ Gadebridge Park, Sun 27th October.

Night Terrors @ The Old Town Hall, Tuesday 29th October

Spine-tingling tales of the supernatural from E F Benson’s brilliant collection of ghost stories, Night Terrors.

Click here to read Night Terrors @ The Old Town Hall, Tuesday 29th October.

Read our top tips for rejuvenating your kitchen

 

We’ve all heard the saying “the kitchen is the heart of the home”, and this is never more pertinent when you’re thinking of selling. Presenting your kitchen in its best possible light may well secure you a sale, so with that in mind, we have put together some guidance on how to rejuvenate your kitchen without having to spend a fortune.

Cabinets
One of the easiest and most transformative ways to rejuvenate your kitchen is to change the cabinets. Don’t worry about replacing the cabinets themselves; instead, give them a new lease of life by painting them in a fresh, modern colour such as an olive green or pale grey. This will change the aesthetic of your kitchen entirely and certainly make it more photogenic. If you are going to paint your cabinets, then ensure that they are thoroughly sanded and primed before you apply the final colour – this will ensure the final coat adheres nicely to give you a more professional finish.

Surfaces
The surfaces in your kitchen need to be practical and attractive – changing the worktops in your kitchen will appeal to buyers and is a cost-effective way to amp-up the style factor. Laminate worksurfaces are the most cost-effective, but you can also find more luxe materials if you shop around. If you’re really looking to adhere to a budget, then try using a vinyl covering to update your surfaces.

Declutter
Even if you have a large space to work with in your kitchen, an easy way to transform the space without spending any money is to declutter. Remove the items which you haven’t utilised for a while, such as the bread maker or mixer, and try to keep surfaces clear – this will create the feel of more space and is certainly more modern in feel.

Walls
If you are looking to make a big change with a minimum of fuss, then updating your walls in the kitchen is a good place to start. Whether it is a single feature wall or the whole room, decide what you are prepared to take on in terms of a project. For feature walls, think of utilising a textured wallpaper as this can create a striking aesthetic in a room not normally associated with wallpapers (florals and leaves work well to create a natural-feeling space). If you are changing every wall, then choose a light and mellow colour to create a feeling of space and utility – avoid kitsch colours such as blue and green.

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. 

Click here to read The Serpent's Tale, hosted by Water Gardens.

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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Surrounded by clutter? Order your home with these steps

 

Do you sometimes feel as though you’re drowning in a sea of clutter? Or that your house has become more and more disorganised? Well, now’s the time to hit those common, messy areas!

Start by sorting through everything you own
Getting started is always the hardest part but performing an audit of everything you own is a great first step. Gather common built-up items like books, items of food, jewellery, paperwork, loose batteries or anything you’re saving “just in case”. Find out how many duplicates or useless items you have and throw them away. Whatever there is leftover, sort and store them properly.

Next… tackle the wardrobe
Let’s face it, a wardrobe is a totally different beast to the random things you tend to collect.

A good system to operate in the future is a one in one out system. Every time you buy a new item of clothing, throw away an old item.

Whilst you’re at it, you should tackle your sock drawers. Throw away any old and worn out items, and add an organiser to the draw to keep everything separate and neat.

Sort out your utensils drawer
You know you’ve collected too much cutlery when the draw starts to stick. Take everything out of the drawer and throw away those useless tools (like your melon baller or your citrus juicer) and add a divider to better divide your essential utensils.

Organise your garage, shed and/or loft space
Transparent boxes are your best friend when it comes to organising your storage spaces. You can stack them all on top of each other and you can see all the contents you’ve stored inside them, meaning you don’t need to go through a hundred boxes to find something.

Get the kids involved
Encouraging your kids to keep their bedrooms neat and organised is a brilliant way to keep one of the messiest areas of your house neat and tidy.

Introduce them to the idea of donating unwanted toys to charity shops and how doing so can have a positive impact on the lives of others. It’s also a vital life skill your children will need to learn, so everyone wins!

James Rowland's Revelations @ The Old Town Hall

Rownlands' show combines story, comedy and song - accompanied by his own music live on stage.

Click here to read James Rowland's Revelations @ The Old Town Hall.

Tips for selling your home as the days get shorter

 

As the days get shorter, it is more important than ever to present your property in an appealing manner if you are going to attract potential buyers. With that in mind, we have put together some season-specific advice to help you find a buyer…

Let in the light
Never is it more important in the year to keep your rooms bright and airy than during the change between seasons. This is because of how quickly the levels of light fluctuate, turning your lovely property into a less-appealing version of itself, with dark rooms and corners. To avoid this, use uplighters to brighten up your rooms during viewings – this type of lighting can be easily placed into corners or areas which may appear darker. Furthermore, blinds and curtains should be drawn back to allow plenty of natural light and don’t forget to turn any lights on in cupboards etc. to create multiple sources of brightness.

Keep paths clear
During this time of year, leaves may start to fall from the trees leaving debris around your property. Ensure that your kerb appeal is kept to its maximum by clearing away any errand plants and debris from your property, especially on the path to your front door where potential buyers will most certainly be surveying. If you have the time, consider tidying up your flower beds and removing and shrubbery which may not be looking quite as lovely as during the summer months.

Clean, clean and clean again
Of course, presenting your property in a clean and tidy state is a given, but it’s also worth considering any other areas that you can spruce up in order to maximise the available light. Clean your windows regularly to ensure that they sparkle for prospective buyers and let in as much natural light as possible (this will also help with the aforementioned kerb appeal). Clean your front door so that it looks at its best – many of us will have white UPVC doors to match double glazed windows, and if this is the case then use some bleach to rejuvenate it.

Increase the pressure
You want your property to seem cosy and inviting, and the drop in temperature gives you the perfect chance to make your home comfortable and welcoming. Turn the thermostat up so that during viewings your property is warm and incentivises viewers to really take their time looking around before they brave the cold weather once more. If you have a fireplace, think about lighting it up or at the very least light some candles.