Category: Cash Home Buyers

Is the countryside living bubble about to burst?

Posted on by JC

 

We know the pandemic sent the property market berserk with prices, particularly outside of major cities where demand saw prices rise at a rate never seen before. Buyers fled cities, particularly London and headed for the countryside for fresh air, open space and larger properties with home working potential.

By the time the first lockdown ended, two years ago, places such as Yorkshire and Derbyshire were so sought after, that homes were selling before hopeful city dwellers could even travel up the motorway to view them. Some estate agents reported a 250 per cent increase on buyers from outside of their area.

But life has started to return to normal, Covid-19 is rarely mentioned in news bulletins, replaced by the cost-of-living crisis and whispers of another recession. So, is the countryside property market about to burst?

The main issue is that there is a major shortage of properties in these areas now, so estate agents certainly won’t see the volume of transactions they have seen over the last couple of years. Furthermore, people are keeping an eye on their finances, taking into account the state of the economy, inflation and whether they can remain working from indefinitely or whether there is an expectation for them to return to the city offices.  Buyers are more reluctant to make a move whilst so much uncertainty is on the horizon.

Far from the frenzied ‘above asking’ offers which have been commonplace over the last 18 months, the market is adjusting to a more sensible approach, and buyers are certainly cautious, offering 10 per cent or more under asking price.

I think the answer to whether the ‘bubble has burst’ is yes, in the sense that the level of activity seen was simply unsustainable. What happens from here on out, whether prices drop off a cliff edge like in 2008, or whether they gradually resume to more sensible levels will determine what buyers and sellers do next.

The worst outcome for those who have made the leap to the countryside is to find themselves needing to move back closer to the city for work but unable to sell due to a declining market. If companies are forced to make redundancies then we could see a reverse of last year – people moving back to the cities to look for work.

If you are looking for a quick sale, for whatever reason, and would prefer an offer market discreet transaction, WeBuyProperty.com can offer free advice and/or a no-obligation offer on your home within 24 hours.


Phone number: 0207 938 3007
Email: info@webuyproperty.com

SOLD – House of Horrors Halloween Special!

Posted on by anna

Do you have a property with a not so appealing past? Perhaps you bought it at a knock-down price and now are worrying about trying to sell it on? Well, fear not, apparently even properties with the grisliest of pasts can appeal to some people.

The house of horrors, 195 Melrose Avenue in Cricklewood, is where Dennis Nilson murdered his 12 (or 13) victims. Yet in 2016, the two-bed flat in leafy North London was sold at a bargain price of £493,000 to an undeterred buyer, despite the gruesome warning on the advert.

Obviously, this is an extreme example, but death is never an easy topic and sellers who disclose a grim past are often concerned that the property’s past will make it impossible to sell.

Firstly, I think it is important to note that nothing happens to the value of a house where a death occurs naturally. However, if a traumatic event happened at a property, sellers should disclose what happened as this may influence the future owners’ decision.

A dark history is definitely going to make a sale harder due to deeply rooted superstitions. A property’s market price could be greatly diminished by a tragic event like a murder or paranormal activity, and even being located next to a cemetery can cause a drop in price.

However, it is important to remember that unlike many years ago, now a simple search on Google can reveal the past of any house that ever appeared in the news or had some history written about it in the papers. For this reason, transparency is always the best approach.

According to The Property Ombudsman’s Codes of Practice for Residential Estate Agents,  Agents “must by law comply with the Consumer Protection from Unfair Trading Regulations 2008 (or the Business Protection from Misleading Marketing Regulations 2008 where applicable).

The Consumer Protection from Unfair Trading Regulations 2008 requires agents to disclose any information of which they are aware or should be aware of in relation to the property in a clear, intelligible and timely fashion and to take all reasonable steps to ensure that all statements that they make about a property, whether oral, pictorial or written, are accurate and are not misleading. All material information must be disclosed and there must be no material omissions which may impact on the average consumer’s transactional decision. Where information is given to consumers and/or their representatives, it must be accurate and not misleading.”

Of course, this is a bit of a difficult area of legislation as it relies on the seller disclosing any information, they know about the property to the agent so that that information can be passed on to any potential sellers. However, agents have a duty of care to do their due diligence and find out any information they can.

 If you have a property with a history which you would prefer not to discuss with estate agents, or are concerned about how it will sell, WeBuyProperty is happy to have a no obligation chat with you about the property.   We will provide honest feedback for the best steps forward for you to sell your property as discreetly and hassle free as possible.

Contact us on: 0207 938 3007
Email: info@webuyproperty.com

We’re paying more for your home as house prices rise the fastest for almost six years

Posted on by anna

Good news for vendors who are looking for a quick sale. According to Nationwide, UK house prices have seen the sharpest rise in nearly six years, making them 6.5% higher than a year ago. That means, right now, we are paying more to our clients for their homes so that they can move quickly.

The rapid rate in which house prices have risen has been driven by a culmination of factors, including pent up demand from the nationwide lockdown, which subsequently propelled people to seek a change in lifestyle or more space to work from home. In addition, the stamp duty holiday on properties priced up to £500,000 has encouraged many to make a move.

However, housing market activity is likely to slow next year once the stamp duty holiday expires at the end of March and the furlough extension comes to an end. In September, the Centre for Economics and Business Research (CEBR) predicted that there will be a massive slump in UK house prices in 2021, by nearly as much as 14 per cent.

In addition, there are a number of reports saying that basic costs for shopping and bills will go up following Brexit which will impact people’s ability to pay a bigger mortgage, therefore putting the brakes on the moving frenzy we have seen over the last few months.

The house price growth we have seen is simply not sustainable alongside macroeconomic influences such as shrinking economic growth, a possible ‘No Deal’ Brexit and most crucially, rising unemployment.

According to a report in the Independent, historically, rises in unemployment result in falls in house prices.  For example, when unemployment in Britain rose during previous recessions, 1993 and 2008, house prices fell by 20 per cent on both occasions.

In the three months to August this year, the unemployment rate stood at 4.5 per cent. Although the housing market has, so far, appeared to buck against the trend of falling as unemployment rises, the true scale of unemployment is not yet being realised due to the furlough scheme. With huge retail stores such as Debenhams collapsing, unemployment is likely to rise sharply next year.

Savvy home movers will sell now at the height of the market and, if they can, wait to buy and see what happens next year because they may well get more for their money.

If you need to move or want to sell quickly, we are happy to have a no-obligation chat with you about buying your home for cash. We aim to complete transactions within a matter of weeks.

Phone number: 0207 449 9797

Email: info@webuyproperty.com

Problems selling when your property chain collapses

Posted on by anna

A property chain is when a number of buyers and sellers are linked together because each of their transactions depend on one another. For example, a buyer needs to complete the sale on their current home in order to finance the purchase of their new home.

A chain begins with a buyer who does not need to sell anything, for example, a first time buyer or investor, and ends with someone who is selling but not going on to buy another property, for example, they are moving abroad or selling the home of a relative who has passed away.
A chain is then made up of all the properties being bought and sold in between this, and can involve several properties which must all transact at a similar time so that those involved can move to their new property.

Problems occur when one link in the chain holds up the moving process for everyone, such as when a buyer in the middle of a chain suddenly finds out they cannot get the mortgage they need or perhaps they have to pull out of a sale for personal reasons. This can result in the whole chain breaking down and having to start from the beginning of the process.

In addition to a chain being made up of numerous buyers and sellers, each of these will be working with different estate agents, surveyors, solicitors and mortgage lenders. A smooth moving process relies on all of these parties working to a similar timeframe and with one another.

For some people, a property chain breaking down is not just extremely disappointing but can be disastrous if they are in a position where they have to move by a certain time.
As move closer to the end of the Stamp Duty holiday (on properties up to £500,000) which ends on 31st March 2021, more people are concerned about their transactions falling through, meaning they would have to pay more Stamp Duty.

Most recently, WeBuyProperty stepped in to help a homeowner whose buyer had pulled out at the last minute. The couple had to relocate due to a new job and needed to do so quickly to ensure their child was at her new school for the start of the academic year. They were unable to find a new buyer quickly enough so we purchased the property from them, effectively becoming the end of the chain.

Unfortunately, there is not much you can do if the property chain breaks. In addition to the disappointment, buyers can lose legal fees, surveying costs and their mortgage arrangement. If the transaction has already exchanged, the buyer will also lose their deposit.

If your transaction has slowed and you are concerned there is a chance your chain may break down, speak to your estate agent and get an update as soon as possible. If your chain has already broken and you need to move quickly, we may be able to help with a cash purchase.

Why not get in touch with a member of our team and see how we can help you!

Phone number: 0207 449 9797
Email: info@webuyproperty.com