SEARCHING FOR MORE SPACE THIS SUMMER?

Here's why you should sell your property this summer...

1. IT'S A PERFECT TIME TO SHOWCASE YOUR PROPERTY

If you are looking to showcase your most valuable asset, summer gives you the chance to ‘wow’ potential buyers and sell them the dream they’ve been looking for. With the garden in full bloom and sunlight streaming through the windows (when the UK decides!) buyers will love looking around your home.

2. SERIOUS BUYERS & SELLERS

Sometimes there are less properties on the market in Summer, however the buyers and sellers looking tend to be the most serious ones!

3. GET SETTLED BEFORE THE NEW TERM

Buyers with children will be keen to have them settled in before school term starts. What’s more, with glorious weather, moving home can actually be a great experience.

This article was extracted from Rightmove for informational purposes

The government has announced that the temporary stamp duty holiday in England and Northern Ireland has been extended until the end of June.

The news will hopefully come as a relief to those buyers and sellers who have been desperately trying to get their sale completed in time to meet the previous deadline of 31st March.

What is the temporary stamp duty holiday? 

The temporary stamp duty holiday, first announced by the government on 8th July last year, means that if you are buying a home up to the value of £500,000 you will not pay any stamp duty.

The extension means you now have until 30th June to complete on the purchase to make the stamp duty saving.

Then, to smooth the transition back to normal, the nil rate band will be £250,000, double its standard level, until the end of September.

It will return to the usual threshold of £125,000 on 1st October.

There hasn’t been any further update from Scotland on any extension to the Land & Buildings Transaction Tax (LBTT) holiday, which is currently due to end on 31st March 2021.

In Wales, temporary Land Transaction Tax reductions are also set to end on 31st March, but we’ll let you know if this changes.

Are there delays in the home-moving process right now? 

When the announcement was first made in July we recorded our busiest ever day on Rightmove, as people rushed to see if they could move home and make use of the savings, leading to a huge increase in the usual number of sales that would be going through the legal process.

We estimate that there are currently 628,000 sales going through, and this massive number, coupled with the challenges of conveyancers, solicitors and councils working from home, has led to delays in the home-buying process.

Our latest data shows that it is taking an average of 65 days from the time a seller has a property listed by an agent on Rightmove until they get an offer accepted, and a further 126 days to get through to legal completion, which is almost seven months.

But remember these are averages, and other factors such as if you are a cash buyer or if council searches in your area take longer will affected how long it takes.

What do the experts say?

Our resident property data expert Tim Bannister explained that the stamp duty holiday extension should give tens of thousands of home-movers the chance to complete before the new deadline.

He said: “This three-month extension will come as a huge relief for those people who have been going through the sales process since last year and were always expecting to make use of the stamp duty savings.

“Our recent data shows one in five sales that were agreed in the same month the stamp duty holiday was first announced in July last year still haven’t completed, so this additional time will make a big difference to help those stuck in the logjam complete their purchase in time before the new end of June deadline.

“Buyers who have recently agreed a sale now have a race on their hands to see if they can also make use of the stamp duty savings, but many with purchases over £250,000 will find that time is too tight to complete before the end of June and so shouldn’t be factoring this into their purchase.

“It’s worth remembering that the average savings vary massively around England, and first-time buyers will still be exempt if they’re buying for £300,000 or less. There are also many other reasons people are choosing to move, evidenced by the strong buyer demand Rightmove has already seen in the first two months of the year.”

As we come to the end of the second lockdown, the government has announced a few changes to the three-tier system that was in place previously in England.

This means that there could be different sets of restrictions that apply depending on where you live.

You may be planning on moving home soon, or perhaps are right in the middle of a move, and would like to know if or how you can still carry on with your plans.

Read on for the latest lowdown, but the short version is that the housing market remains open across all of the UK. 

How do local tiers affect my move?

The good news is that the housing market is open and operating irrespective of what tier you’re in.

This means you’re totally free to move homes if you want to – as long as you’re not self-isolating or quarantining.

There are some guidelines for home-moving that apply everyone across the country. Here’s a quick recap of some of the most important ones to keep in mind:

Viewings

Try to do a virtual viewing first, if it’s an option. It’ll reduce the number of viewings agents do, which also minimises the spread of germs.

It could also save you time, because you’ll have a better idea of whether a house is worth seeing or not.

When viewing a property in person, make sure you wear a face mask, avoid touching surfaces, and wash your hands or use sanitiser before and after.

There shouldn’t be more than two households within the property at any one time, and viewings should only be arranged by appointment, so ‘open houses’ aren’t happening at the moment.

If you’re selling your home and are having interested buyers come around to have a look, open all the inside doors beforehand so they don’t have to touch the door handles.

It’s recommended that you’re not in the property during the viewing, and that you disinfect all surfaces after.

Offers through to completion

You’re free to make or accept an offer or reserve a property as normal.

But it’s possible that in some areas the conveyancing process will be slower than usual, as some solicitors and agents may be operating at limited capacity, or are very busy working through deals that have stacked up since earlier in the year.

If you are about to enter into a legally binding contract, you should discuss the possible implications of one of the parties being affected by having to self-isolate or quarantine.  Ask your legal representative if they can include provisions to manage these risks in the contracts.

If someone in your household – or the other party’s – began to show any flu symptoms just as you’re about to complete, you’ll probably need to postpone things by a few weeks.

The government says we should all remain flexible in this sort of scenario, so it would be ideal if your contracts can reflect that.

Moving

Removal firms are able to carry out work, as long as all the usual procedures that ensure everyone’s safety are in place.

Try to do most of your packing yourself, if possible. And if you can, give your belongings a quick spray or wipe-down with a disinfectant before they’re handled by someone else.

When the removals’ team is around, do your best to maintain distance and wash your hands regularly.

We also recommend that you book your removals company as early as possible. In many areas they are very busy and if may be a challenge for you to find one available at a short notice.

There are more details within the guidance, but the government has said that the three most important rules, irrespective of what tier you’re in, continue to be:

• Wash your hands – with soap, regularly, and for at least 20 seconds.
• Cover your face – especially when in an enclosed space with people you don’t usually meet with, and where socially distancing is difficult.
• Social distancing – stay two metres apart as much as possible.

If you are considering selling or letting your property in Ashtead, Leatherhead, Fetcham, Epsom, Bookham or the surrounding areas, call V&H Homes on 01372 221 678

According to tax specialist, Imogen Lea, financial penalties due to ‘seismic’ changes to CGT payment rules could heavily impact people selling buy-to-let properties.
From April 6th, anyone who disposes of a residential property giving rise to a capital gain on which CGT is payable, will be required to make a digital return to HMRC and to pay an estimate of the CGT due within 30 days from the sale completing.

People will also no longer be able to benefit from a possibly substantial sum of money remaining in their hands for up to 22 months after residential property disposal.
Imogen, a consultant in Clarke Willmott’s Taunton private capital team, says: “This is a very big change and could easily catch people out. Interest on the unpaid tax and other financial penalties will be due if the rules are not followed. The risk of such a tight turnaround is people being unaware of the changes and failing to comply. They need to be aware of the vastly reduced time limits and to be ready to make the return and estimate the CGT due.

CGT computations are not always straightforward, which could mean that if people are not prepared, they might not be able to collate the information necessary to make the CGT calculation in time.”

The changes will potentially affect owners of holiday homes, buy-to-let properties, main residences which have been let out at some point, owners of homes with grounds in excess of half a hectare, and owners of houses which have been partly used for business purposes.

Imogen says the changes will not generally apply on the sale of a person’s main residence, but will be relevant on the sale of second homes, and where the main residence exemption does not apply for any reason.

“Gains are not always straightforward to calculate – if an owner has made improvements to the property the cost of these will be deductible from the capital gain, but if there have been numerous improvements over many years it may be challenging for the client to find all the supporting documentation.”

Imogen urges property owners to make an early start of compiling the required information and to start thinking about the CGT position as soon as the property goes on the market.
CGT is calculated by treating the gain as the highest amount of the owner’s income during the tax year in question, and therefore clients will need to estimate their income during the tax year of disposal as this will impact on the CGT rate applicable to the gain.

Personal representatives and trustees, as well as individuals, will be required to comply with the new rules. Meanwhile, gifts of properties also give rise to a disposal for CGT purposes triggering the new requirements.

John Bunker, chair of Chartered Institute of Taxation’s private client UK committee, has branded the new reduced deadline as “a seismic change”.

If you are interested in buying selling or letting a property in Leatherhead, Fetcham, Ashtead, Bookham, Epsom or surrounding areas then please call the office on 01372 221 678 to speak to a member of the team. 

Visits to Rightmove surpassed 150 Million for the first time ever on Rightmove in January, making it the busiest ever month ever recorded as home-hunters looked to take advantage of a more vertain political outlook. 

There were over 152 million visits to Rightmove in January, a 7% increase on January 2019. The previous record for the busiest month was last set back in May 2019.

The top five busiest days ever on Rightmove were all between 21st and 29th January, with Wednesday 29th topping the list. There were over 5.7 million visits on that day, up 9% on the previous record set back on 24th April 2019. 

Time spent by home hunters on the site was up 4%, with people spending a total of 1.17 billion minutes. 

The number of sales being agreed by agents was up 12% compared to the same month in 2019, the biggest year-on-year in any month since July 2017. London saw the biggest uplift, up 26% year-on-year, followed by the East of England, up 20%.

Rightmove's property expert Miles Shipside said: " Home-movers have sprung into action in 2020, with a large number of agents telling us that sales and valuations have picked up significantly in their local areas. There's still an imbalance, with demand growing at a faster rate than new supply and no clear sign yet of any uplift in new listings compared on this time last year, but we could see a new wave of sellings in the coming weeks. The annual jump in sales agreed numbers is the highest we've seen in any month since summer 2016 because of the short-term dip in activity immediately after the Brexit vote. The stage certainly looks set for an active spring if those sellers considering putting their homes up for sale end up doing so, but to catch this wave of buyer momentum sellers should take care not to over-price their homes. It's still a price sensitive market and there's a limit to what buyers can borrow even though mortgage interest rates are temptingly low."

If you are looking to sell/let or buy a property in Ashtead,Leatherhead,Fetcham,Bookham or surrounding areas then please do give the office a call on 01372 221 678.

Anyone struggling to sell their home should consider a garden revamp to help make their property more attractive which could be the perfect thing to do in 2020! If you're in Fetcham,Ashtead, Leatherhead or even the surrounding areas and you're looking to sell your property this year, then these following tips could really be useful in how to create a beautiful space which will get you noticed. 

Similarly, homeowners who are thinking about putting their property on the market should seriously consider a little green-fingered artistry.

The garden experts at BillyOh.com have mulled over this conundrum and come up with six relatively simple ways to spruce up your outdoor areas.

A spokesperson for BillyOh.com says: “A garden, specifically the front one, is the first impression any prospective buyers of the house will get.

“Treating the garden like any other room of the house will help you make sure it’s working in your favour when the viewings start coming in.

“Although your garden may seem perfect for you and your family, you need to look at it objectively to see what an outsider would think.”

Here are the top six garden transformation tips, according to BillyOh.com:

1. Tidy

If there are piles of rubbish everywhere, this may cause prospective buyers to think this is reflected on the inside of the house. Giving the fence and any furniture a fresh lick of paint will help the space look more welcoming, as viewers visualise themselves and their family in the space.

2. Low maintenance

A low maintenance garden is something which will help sell the house. It means it’s easier for the new owners to put their own identity on the space. Tiered gardens can often put some buyers off, along with big trees which could potentially cause a problem with foundations later down the line. 

3. Hedges

If hedges are all trimmed back and neat it will help the space look bigger. Hedges also frame the garden but ensure they don’t look too daunting as you don’t want to offload a large gardening task onto the new owners, who may not be sure on how to look after them.

4. Privacy

No one likes an open garden where all the neighbours can look in. Consider putting up fences or maybe some high hedges to ensure the garden feels like a private extension to the house. An arbour over a seated area could also work for gardens in higher built up areas.

5 . Size

A big, easy to maintain garden is something which many buyers will be looking for. You can make your space immediately look bigger by taking down any children’s toys such as swings or trampolines. You could even consider moving any sheds or greenhouses to ensure the space looks as spacious as possible.

6. Paving

Remember that your garden is not just about the grass and flowers, but also the paving, decking and any other features that come with it. Make sure these have been power-washed down and look clean, and that any cracked paving stones have been replaced.

For Sales & Lettings please call the Ashtead office on 01372 221 678 and we would love to help. 

As millions woke up on Fri 13th to the general election result, ‘Property Reporter’ takes a look to see how the property industry has reacted. So, the votes are all in. They have been counted and the UK has spoken. As usual, the property industry was quick to react to the result. Here’s what they are saying:

Saul Empson; Harringtons: “For the wealthy, this is a hugely comforting outcome – they have the party of their choice in power with a majority, and buyers and sellers can all get on with their lives and push forward with the moving plans that they’ve been sitting on for quite some time.”

Nina Harrison; Executive at Haringtons Buying Agency, commented: “I would expect prices to increase – they won’t race up, but prices will definitely strengthen in Central London as more people start to buy and sell again.”

Caroline Takla; Founder of prime London buying agency; The Collection: “Today’s result will be doomsday for a lot of high value deals. I know many buyers who categorically wouldn’t exchange until after the election result, so today, many purchasers and vendors alike will be happy knowing Corbyn’s name is now confined to the history books. A Conservative majority is the outcome most likely to deliver stability and much needed certainty to the market, and one that many of my clients were hoping for. On a local level, there will be more confidence in the market. It will be perceived as a direction of travel. Whilst the precise details of our future relationship with the EU are still not formed, much of the Brexit effect has been priced into the market already. The market will buoy initially, but as these details continue to unfold there will still be buyers who will hesitate before committing.”

Guy Harrington; CEO of property lender Glenhawk: “Finally some light at the end of the Brexit tunnel. This result, coupled with finally leaving the EU in January, is the tonic the real estate market’s been waiting for. Expect improved liquidity, greater transaction volumes, a stronger pound and a bounce in the housing market, all of which will benefit lenders, investors and developers alike.”

Walter Mythen, New Homes Director at JOHNS&CO: “This is the best outcome for the property market, although we anticipate growth will continue to be slow for the foreseeable future as people recover from the hangover of the last three years of political instability. A Tory majority gives us some much-needed clarity and will result in a quicker bounce back to a ‘normal’ market. We wouldn’t expect any dramatic increases or decreases in the market, but buyers and sellers will finally be able to get moving. We may well see the return of the casual investor too – who had all but disappeared in the last three years of political instability.”
Richard Pike at Phoebus Software: “People have voted for a resolutional Brexit, but what does a Conservative majority mean for our Sector? The fact is, a stronger pound, a surge in the money markets and, based on campaign policy, this should be good for all.”

Jamie Johnson; CEO of FJP Investment: “Many will be somewhat relieved with this result – a Conservative majority means we are a step closer to ensuring Brexit will be finalised in some shape or form come the end of January 2020. As expected, there have been some significant movements on the financial markets which is to be expected. Once an election result is announced, the markets will naturally take time to adjust to the news, before once again becoming stable. Of all the possible outcomes to come from the yesterday’s election, a Conservative majority provides the most clarity. Their position on Brexit is clear, and now we wait for Boris Johnson’s EU Withdrawal Agreement to once again be voted on in parliament. Importantly, I hope the government uses this victory to start making progress on national issues that have been ignored; such as the property market.”

Nick Leeming; Chairman at Jackson-Stops, comments: “Over the last few years, both buyers and sellers have done well to adjust to the ongoing uncertainty facing our country, yet we hope that today’s result will finally provide some reassurance to the property market. Throughout the Conservative party’s campaign they pledged their support for greater home ownership and so now is the time for them to form a Government that will deliver on this.
In the lead up to Boris being elected Prime Minister, he spoke widely about stamp duty cuts for UK residents, yet this quickly fell by the wayside as he settled in to No.10. Our latest research found that 41% of consumers think there should be a wholesale reduction in stamp duty across all price brackets, while more than a quarter think Government should abolish stamp duty on all homes under £500,000. Just 3% felt no change was required, which highlights the need for change.

It was therefore disappointing to see the party’s manifesto only focussed on increasing the amount of stamp duty payable for non-UK residents – done in an attempt to take the heat out of the property market. If we are to give the economy the much-needed boost it needs, what we actually need is to reduce the burden of stamp duty across the wider UK housing market.
Although we still have Brexit to contend with, housing must continue to be a key priority for the Conservatives. People are of course still moving. Buying and selling property doesn’t simply stop because the UK is leaving the EU or there has been an election – there are often overriding reasons for moving, whether to be closer to a good school, better childcare or the need to upsize or downsize.

Yet it is quite clear that if our Government wants to see a more fluid property market, which is moving at all levels, then it needs to provide far greater support to key demographics such as first-time buyers, young families and downsizers.”
Paresh Raja, CEO of Market Financial Solutions: “In many ways, today’s result shouldn’t come as much of a surprise. The Conservative Party’s main election pledge has been to ‘get Brexit done’, and the result suggests people are longing for the issue to be resolved come 31stJanuary 2020. What’s more, a majority government means we’re less likely to see a legislative deadlock in Westminster as has been the case since the last election.
For the property market, this is good news. Investors have been yearning for greater certainty and while national house prices have been steadily rising as a result of sustained demand, many have adopted a wait and see approach before committing to a real estate purchase. This result provides some much-needed clarity, and I’d expect to see an increase in property transactions over the coming months.

There are plenty of question marks hanging over the newly-elected government. When will the long overdue budget be delivered? Will there be changes to taxes like stamp duty? How will the housing crisis be addressed? I hope the Prime Minister addresses these questions and does not let Brexit continue to overshadow pressing national issues.
For now, at least, all eyes are turned to the end of January when Boris Johnson’s commitment to deliver Brexit will be put to the ultimate test.”

Jerald Solis, Business Development and Acquisitions Director of Experience Invest: “Despite winning a majority, the Conservative party should view this only as a minor victory. Whilst this was dubbed a ‘Brexit Election’, the public has made it clear that other pressing issues must be pushed to the forefront of the newly elected government’s agenda, such as the housing crisis.

Research from Experience Invest has shown that just 11% of consumers had faith in Boris Johnson’s previous government to solve the problem. So, the question now is how his new government will ensure the appropriate measures are put in place to ensure more people are able to jump onto the property ladder. From the promise to build 29,000 affordable homes, to simplified shared ownership and help to buy loans, the public will be expecting creative action.

One of the main public concerns will now be whether the government will meet the Brexit deadline of 31st January or seek another extension. After all, with over half (53%) of consumers Experience Invest surveyed agreeing that prolonging Brexit is counterproductive to solving the housing crisis, we cannot let Brexit overshadow pressing national issues that have been ignored for far too long.”

Liam Bailey, Global Head of Research at Knight Frank, said: “The Conservative Party has won a majority of just under 80 seats in the UK general election. As a result, the UK is likely to leave the European Union on 31 January, with a vote in Parliament and a Queen’s Speech expected before Christmas.

This will, for the time being, end the uncertainty of a no-deal Brexit and pave the way for the release of some of the pent-up demand that has built in property markets in recent years. The extent to which this translates into transaction activity in the short-term will depend on the size of the pricing expectation gap between buyers and sellers.

Supply is likely to rise as political uncertainty recedes and private and public spending stimulate the UK economy. This will put downwards pressure on prices, however some vendors may expect a bounce in prices, which may create a stand-off between buyers and sellers as the market re-prices.

A shortage of supply in the lettings market may be further exacerbated as owners attempt to capitalise on any perceived ‘bounce’ and list their property on the sales market, which would put upwards pressure on rental values.”

Randeesh Sandhu, CEO of Urban Exposure said:“The Conservative majority delivered at the General Election is the best result for the UK property sector. They are clearly the party that has been and looks set to continue to support home ownership with a series of initiatives in their manifesto focussed on supporting first time buyers, such as the proposed mortgage deposit scheme.

We expect the housebuilding market to also be boosted by a resurgent UK economy in 2020, particularly as and when Brexit is resolved. The RICS survey yesterday showed the property industry believes getting Brexit done will trigger surge in housing market and we very much subscribe to that view. The prospect of a trade deal will have a positive impact across supply chains, as well on demand, as greater certainty breeds improved confidence throughout the sector. Although the timing of any deal is clearly not confirmed, the UK economy and property sector starts from a position of strength, with the ongoing growth in wages outpacing inflation which, in turn, should keep interest rates at record lows. All this adds up to healthy picture for UK housing demand.”

Whether you voted to leave or stay, Brexit is beginning to take it's toll on the UK housing market. Which ever way you look at it, we're facing uncertain times; not helped by the fallout from the latest historic events at Westminster.

So, should you be concerned? And could Brexit affect your property investment plans? Let's look at the statistics…

To start with, according to Rightmove, average UK property prices dropped by £5,222 or 1.7% in November with a similar fall forecast for December. These latest statistics represent the largest month-on-month fall since 2012.

But it's not all doom and gloom. Rightmove's figures are skewed towards the London property market and, outside of London, there are areas reporting increases in property values.

If you look at the figures over a longer period, specifically since article 50 was triggered, the UK’s house prices have risen by 8.13 per cent on average (from £215,078 to £232,554), according to latest ONS UK House Price Index report.

Add to that reports by Zoopla that 55% of consumers are still expecting property prices to increase in 2019, there is still confidence in the market.

A recent survey of industry experts also revealed a cautiously positive outlook for 2019. Whilst most expect some short-term volatility, non are expecting a price crash, more a 'softening' of the market.  

Confused?

Well, the simple fact is, that the property market has always been susceptible to cycles. It is not unusual for the property market to go up and down over time. Typically, once it’s been down, it comes back even stronger, and then the cycle repeats itself.

Confident buyers and investors see a market downturn as an opportunity to get a bargain, giving them the opportunity to gain more when property prices go back up again.

So, should you buy or sell now, or wait until the outcome of Brexit is more certain?

That really is up to you. If you need to move, have found the perfect property at the right price and are confident about your finances, there's no reason not to proceed.

Regardless of how you decide to proceed, bear in mind that buying a property is, for most, about securing a home or long term rental income. The property market is pretty resilient, and as long as you’re not looking to buy and then sell immediately, houses tend to survive the bumps in the road.

Please note: This article does not represent investment advice. When buying or selling a property you should seek independent advice. If you have a specific property that you are interested in buying or selling, please contact us to discuss how we could help you.