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What does 2021 mean for house prices?

Posted on by anna

Residential property prices increased by 6% in 2020, according to Halifax, with the average price of a property in the UK reaching a record high of £253,374 in December, up £14,295 year-on-year.
This significant upturn in prices was driven by pent-up demand after years of Brexit uncertainty followed by the first National lockdown, which encouraged people to reevaluate their lifestyle, and then of course the stamp duty holiday. These factors combined were the perfect recipe for a big acceleration in the property market.

What does 2021 have in Store?

Well, despite the country being plunged into a third national lockdown, the property market remains open, which is positive. However, with the Stamp Duty holiday ending on 31 March and furlough coming to an end in April, there are signs that values could slow significantly this year.
In addition, it is estimated that around 350,000 buyers could lose out on the stamp duty break for their purchase due to problems like delays to completions or trouble getting mortgages approved. According to Rics, a number of surveyors saw queries from potential new buyers rise in December, but to a lesser degree than in November. The number of new buyer queries has now dropped for the fifth consecutive month, which could be an indication of where the market is heading.
Whilst the momentum of rising house prices may fade, in reality they could not continue at the pace there were rising, and therefore a slight readjustment should not make too much of an impact on sellers. With positive news of the Covid vaccination rollout, sentiment may improve enough to help sustain a good level of demand.
In spite of the Stamp Duty holiday coming to end, many homeowners who have come to the realisation that they need more space will still be motivated to move, even more so following another lockdown. Sellers may find that buyers try to negotiate harder on price to account for the increase in Stamp Duty they will have to pay.
In cases where disposing of a property asset quickly is priority, using the conventional method of selling through an estate agent is not always practical.  WeBuyProperty has helped people who need a quick sale due to changes in their personal circumstances, such as relationships, moving abroad or facing financial difficulty.
We also purchase probate properties, repossession or properties which have issues such as subsidence, for example.  Most recently we have seen a surge of enquiries relating to properties with cladding issues, short leases and landlords looking to dispose of properties with tenants in situ.
As members of the National Association of Property Buyers and the UK’s largest redress scheme, The Property Ombudsman, our clients use our house buying service with confidence.  We provide a guaranteed quick sale and are able to transact within a matter of weeks or a timeframe to suit our clients’ requirements.  We look to purchase property BMV within the UK.
If this is something that would be of interest, feel free to make a no-obligation enquiry about our services.
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Phone number: 0207 449 9797
Email: info@webuyproperty.com

Selling a home with Subsidence

Posted on by anna

Whether your property had subsidence in the past or you have just recently found out that there is a problem, it is no doubt causing you a headache.  Subsidence can not only be expensive to resolve but it can significantly push up insurance premiums and affect the saleability of a property. In extreme cases, subsidence damage can result in houses being uninhabitable while repairs are being carried out.

What is Subsidence? 

Subsidence is the downward movement of the ground supporting the building, meaning the foundations under your house become misaligned through sinking or caving in, threatening the structural integrity of the building.  Typically, it is most problematic in the warmer months as the lack of rain causes shrinkage of clay soils which expand and contract with changes in their moisture content.

Subsidence damage to buildings is most commonly identified by cracks in walls which are visible from both inside and outside the property, wider than 3mm, tapered and extending below the damp proof course.

Whilst it is not impossible to sell a home that has had, or currently has, subsidence, it can make it more challenging.  You will need a survey on your property to know whether the subsidence is historical or ongoing and the extent of it.

If it is historical then no improvements will need to be made.  However, this information will have to be disclosed to an estate agent if you are looking to sell, who in turn must inform any prospective buyers.

Unfortunately, subsidence can put some buyers off, even if it is historical and therefore can affect the selling price by approximately 20%, depending on the severity.

If you’re struggling to sell your home with historical or current subsidence, WeBuyProperty will give you a valuation to buy your home for cash and take the stress out of trying to sell.

To get in contact with a member of our team;

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

The property market is open for business and so are we

Posted on by anna

 

Not quite the start to the New Year we had all been hoping for, but in many ways it was inevitable. Fortunately, unlike the first lockdown, WeBuyProperty welcomes the news that the property market can remain open for business.  This is a huge relief for many home movers. With thousands of property transactions currently in the pipeline to complete before the end of the stamp duty holiday, shutting down the market would have created an avalanche of transaction fall throughs.

Operating as Normal

Estate agents, removal firms, and tradespeople who need to attend people’s houses are able to continue operating whilst adhering to strict safety and social distancing rules. Of course, there is likely to be increased caution whilst the new strain of Coronavirus is so prevalent, with homeowners less willing to permit several house viewings. This may lead to some properties being taken off the market for now.

The biggest challenge is going to be getting all the current transactions over the line before the stamp duty holiday ends on 31 March. Many mortgage lenders, surveyors and conveyancers are already at maximum capacity with current applications.  Despite the property market remaining open, the latest lockdown will inevitably cause some delays with more people working from home.

Those most impacted will be buyers who would not have the funds to complete a purchase if it meant they would incur extra costs due to missing the Stamp Duty deadline. There have been calls on the Government to extend the deadline or phase the holiday period out on a sliding scale rather than a hard deadline. However, so far, the Government has rejected calls to extend it.

Demand shows no signs of slowing yet and positive news for prospective vendors is that the sales price growth reached a six-year high of 7.3 per cent in December, according to the Nationwide House Price Index, making six consecutive months of jumps in the rate of annual price growth.

If you want/need to sell your house fast in London but do not want physical viewings of your home, or you are concerned that your current chain may fall through and need to complete before the Stamp Duty holiday, we are here to help you. WeBuyProperty is fully operational and has the ability to transact property sales in a matter of weeks.

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

Is Your Broadband Speed Preventing Your House Sale? 

Posted on by anna

People who have not moved for years, but are now considering doing so, might be surprised to learn what has now become important to the buyers looking at their house, and what they find is important to them when looking for a new home.

What have recent studies proven? 

There have been several studies over the last few years relating to top priorities buyers look for when moving home, and even before the pandemic, more than two thirds said they would by “put off” by a home with slow WiFi. Apparently, two in five people decided against a property after finding out the area had poor broadband connection.

So, with that in mind, you can image how a reliable internet connection has climbed the ranks this year! According to one report, following Covid-19, 93% of people said a reliable internet connection was a priority when house hunting.
Understandably, this reflects the growing need for a better connection that can help to handle home working, alongside using several devices at once and streaming videos etc.

Also, keep in mind that the buyer of your property may be a landlord looking for rental income, so broadband is going to be a huge factor in the rental market.
I know it seems crazy that alongside all the other factors that people have to consider when moving house, such as location, property type, garden size, number of bedrooms, the list goes on, that buyers would add internet as a priority, but I guess that is the world we live in now.

If you are trying to sell your house, particularly in a more rural area which is more likely to be affected by slower internet speeds, be prepared for buyers to scrutinise your internet speed. This has become so important to buyers, that a study looking at average UK house prices by ISPreview, found that if you have really slow internet speed, 24 percent could be knocked off the value of your home. Naturally, to coincide with this shift in what people prioritise in their search for a home, a home office or a spare room is now becoming more important whilst ‘ commuting time to the workplace ‘ is less important.

If you are struggling to sell your home because it does not have all or some of the buyer’s top priorities (garden, office, spare, room, location), WeBuyProperty may be able to help.

WeBuyProperty can give you a n0-obligation quote to buy your home for cash. We aim to complete transactions within a matter of weeks.

Phone Number: 0207 449 9797

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

Tired of Living in a Flat? 

Posted on by anna

If you own a property and are considering selling up, you will almost certainly be aware of the mini property market boom.  This has resulted in the average property price increasing by 7.5 per cent year-on-year, hitting a new record high, according to Halifax bank, as well as an estimated 140,000 more home sales than last year currently waiting to be completed.

The issue of trying to sell a flat in the current circumstances… 

However, not all is so rosy if you are looking to sell a flat. Covid-19, the subsequent lockdowns and our new found remote way of working, has led to a surge of  flat-owners wishing to sell up and move to somewhere with more space and more land, or at best with a garden / outdoor space.

The issue is that with so many having the same idea, the demand for flats has diminished and owners, unlike those selling a house, are finding it difficult to find a buyer. This is of most concern to those who don’t just have a desire to move, but a strong need, such as a new job in a different location, attempting to be in the catchment area of a school in time for the application deadline or needing to sell for financial reasons.

Most recently, there has even been reports (in The Times) of some estate agents not wishing to take on any more one or two bedroom apartments unless the vendors are willing to accept a significantly reduced price because supply is far outweighing demand.

There are also three other factors at play which are contributing to the demise of the flat:

Typical buyers – Since flats are more affordable on the whole than houses, they have always been a good option for first-time buyers taking that initial step onto the property ladder. Unfortunately, many young people work in sectors which have been most impacted by the pandemic including hospitality, retail and travel which has contributed to the decline in demand.
Cladding – Many buyers have been prevented from purchasing flats in buildings which have cladding that has not yet had an EWS1 form signed off to prove the building is safe. (Read more in our blog HERE)
Leasehold Scandal – Four of Britain’s biggest developers are currently being investigated after buyers argued they are caught in a leasehold trap of rising ground rents and unfair fees.

Of course, there will always be a market for flats, and in time it is likely we will see a resurgence in demand once again. However, if you are in a position where you need to move now and are struggling to sell, We Buy Property will review your property and may be able to make you a cash offer.

To have a no obligation chat about your circumstances, Get in touch with one of the team on:

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

The Impact of Lockdown on the Housing Market

Posted on by anna

When the country was locked down back in March, it was unlike anything anyone had ever experienced before and every single person and industry was facing the unknown.

Although catastrophic in so many ways, it was somewhat novel. The sun was shining and each week there appeared to be more and more help being made available. The country rallied and united in support of the NHS and each other, and there appeared to be a caring, sharing sense of community.

Spending more time at home…

People spent more time at home with family and they reevaluated their lives and living arrangements. Many realised that the world of work had, quite possibly, changed forever, and this opened the door to possibility – a larger house, a new location in the countryside, or even a downsize to free up equity.
As lockdown eased, the pent-up demand built from two years of Brexit talk and three months of lockdown resulted in a house-sale frenzy.
Now let’s fast forward seven months and try to start with a positive.  Despite the impending second lockdown presenting an extremely worrying time for many, there are, if only a few, some positives. Schools, for now, will remain open meaning parents can continue to work, and unlike before, many people and businesses have managed to adapt and evolve their usual working practice in order carry on in some capacity.  Of course, I fully acknowledge that this will be of little comfort to those sectors which have been ravaged by the pandemic, and sincerely hope that the support being offered is increased to help more businesses survive.
Fortunately, at present, it would appear the housing market can continue to operate. For me, enabling people to move in order to fulfil their personal living requirements so as to have a safe, stable and affordable environment to live is essential. A fluid housing market also breaths life into so many other sectors of business, from mortgage brokers and conveyancers, to removal firms, tradespeople and furniture suppliers, to name but a few.

Sadly, I think the biggest challenge we will face in the housing industry this time is sentiment. The weather has turned and so too has the mood of the country. Despite the furlough scheme having now been extended, many people have already lost their jobs. Businesses, which thought and hoped the world would be back to normal by now, are having to look at their forecasts for 2021 and significantly revise them down.
We’ve seen mortgage lenders withdrawing many of their deals on low-deposit home loans in a bid not only control the volume of business, but because some are nervous of a possible house-price crash next year. This particularly impacts first-time buyers who typically put down 5 or 10 per cent of the house price as a deposit.  Many lenders have also raised interest rates over past weeks, even as the Bank of England base rate has remained at its record low of 0.1 per cent.
With Covid cases on the rise, people are undoubtedly going to be more cautious. Vendors will likely only accept viewings for serious proceedable buyers, and similarly buyers will only want to view houses they have a strong interest in.
Yes, good houses have been selling very quickly, but what we are starting to see is that more houses means more choice. This means buyers are willing to hold on for the perfect home and those which have not sold yet, perhaps because they are not in the best location, do not have a garden or lack curb appeal, are remaining unsold for longer.
Most worryingly is also the rise in the number of people who may be forced to sell their homes because of loss or change of job and with so many house transactions being processed there is a real delay in completions.

If you are in a position where you wish to sell your property quickly and would like to discuss a quick-sale option, you can call us at WeBuyProperty for a no obligation chat. 
Tommy Hughes, Director
Phone number: 0207 449 9797
Email: info@webuyproperty.com

Will 6 months’ notice mean more landlords sell with tenants in situ?

Posted on by anna

Legislation has been introduced so that landlords must now give tenants 6 months’ notice before they can evict tenants until March 2021, except in the most serious of cases, such as incidents of anti-social behaviour and domestic abuse perpetrators.

 

The Second Wave…

However, as the global pandemic enters a second wave, it is hard to see that this rule will be reversed in spring. Despite many landlords supporting their tenants during this difficult period with reduced rent or a rent holiday, with the furlough scheme now ended and unemployment on the rise, some landlords are being forced to consider an exit strategy.

Tommy Hughes, Managing Director of WeBuyProperty, says: “We have been contacted by a number of landlords who, for their own personal financial reasons, desperately want to sell their buy-to-let property.  The problem is that the six months’ notice period means it will be some time before they can sell with vacant possession, and even longer if they have to go through eviction proceedings. To get around this, we’re finding that some landlords are enquiring about selling their property with their tenant(s) in situ.”

However, selling a property with a “tenant in situ” or “sitting tenant”, terms used to describe a person (or people) who has a legal tenancy which entitles them to occupy a property, is not without its challenges because the market for a house with a sitting tenant is generally quite small.

By having a tenant in situ, landlords limit the number of people who would be interested in buying their property as it rules out anyone who would want to purchase it to live in themselves. That then leaves landlords or investors, but this can still prove difficult because many banks and building societies will not give a mortgage on a property with a sitting tenant.

One quick and straightforward solutions for landlords who do not want to wait for vacant possession could be to sell their property to a cash buyer, complete with tenant in situ. Although landlords are less likely to achieve full market value, a cash buyer will be able to give a guaranteed completion in a fairly quick time-frame without the hassle of having to wait to evict the tenant.

“From an investors point of view, buying a property with a tenant in situ can be a win-win, purchasing a property with a ready-made income. With tenants less likely to move in the current climate it also means that income could be guaranteed for longer.”

For advice about selling a property with a tenant in situ, contact WeBuyProperty

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

Short lease selling saga

Posted on by Jonny

Not only has the global pandemic changed the way we work, shop and socialise, it has also got many of us thinking about how we live…or rather, how and where we want to live.

Forced to spend much more time at home than we perhaps normally would, lockdown has encouraged homeowners to reevaluate their living requirements, with many seeking more space and flexible living to accommodate changing work/commuting habits.

The problem for some, is that there has been a shift in demand, with flats becoming somewhat less desirable than houses.  According to Zoopla, houses are currently selling 33% faster than flats.

Whilst there will always be a market for flats, those struggling most in the otherwise buoyant market are homeowners looking to sell a property with a short lease.

In the last month alone, WeBuyProperty has received five enquiries from potential vendors who thought they would be able to bag a buyer looking to take advantage of the Stamp Duty holiday, only to later realise the challenges presented by their short lease.

Owning a property on a leasehold basis means that you only have the right to occupy the property for a fixed number of years, which on many properties can be up to 999 years and therefore does not present a problem. However, once a lease has less than 80 years to run, the value of the property begins to fall.

The big problem is that banks and building societies will not usually lend money on houses, flats or apartments with a short lease. Some banks will not lend to a person buying a property with a lease under 70 years, which means unless the vendor can find a cash buyer, the property is impossible to sell.

In addition, whilst the value of a property with a short lease comes down as every year rolls on, the cost of solving the problem rises. That is why it is imperative that leaseholders find out how much time is left on their lease, particularly if they think they are nearing the risk zone of around 85 years.

There is nothing more frustrating than making the decision to move and then finding that external factors are preventing you from doing so. However, there are a number of options depending on how quickly you need/want to sell:

  • Once you have a lived at the property for two years you can apply to extend the lease. Typical extensions are 90 years for a flat and 50 years for a house. However, extending a lease can be a costly exercise running into thousands of pounds depending on the value of the property and time left on the lease.
  • You can also buy the freehold, but this can be challenging in a block of flats as it requires all neighbours to come to a joint agreement to do so, and again can be costly.
  • WeBuyProperty will make cash offers to vendors who wish to sell properties with a short lease.

If you would like to some advice, or to find out how quickly you could sell your short-lease property, contact:

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