Estate Agency Today reported recently on the increase in Mortgage approvals and sited the Stamp Duty changes as the reason behind it. This is what they had to say:

“The housing market has received a boost after mortgage approvals rose in December. Bank of England data shows mortgage approvals on house purchases rose by 0.7% between November and December to 66,526. The figure is up 27.7% annually and suggests a busy market in the build-up to the cut in Stamp Duty thresholds in March.

Total approvals during 2024 were up 30% at 577,173 despite rates remaining relatively higher compared with previous years.

Commenting on the data, Jason Tebb, president of OnTheMarket, said: “With approvals for house purchases, an indicator of future borrowing, picking up slightly in December following November’s fall, market stability and buyer confidence continues to be remarkably steady.

“While affordability remains an issue for many buyers, there is encouraging talk of further base-rate reductions this year. We saw how the two rate cuts in August and November boosted buyer and seller confidence and further reductions should provide another shot in the arm for the market, improving all-important activity. This, combined with the end of the Stamp Duty concession in March, points to a brisk spring market.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “Mortgage approvals always provide an excellent pointer for direction of travel for the market. These figures are particularly interesting, continuing the up a bit, down a bit, trend from last month, hot on the heels of the disappointing Budget.

“On the ground, activity is finding a new level. We are seeing more enquiries but buyers remain cautious with no significant changes expected until perhaps a drop in interest rates next month.”

 

 

Modified article taken in part from an article from:  Estate Agency Today 

 

If you liked this article, you may enjoy this one: A forecast of mortgage rates and market activity in 2025

 

Important Information
All property sales and the financial advice that surrounds them are as unique as the people engaging in the transaction. It is important to not decide without seeking professional advice. If you want to sell your home and are considering redecorating before marketing, speak to one of our Property Professionals to get the best advice for presenting your home for sale before making any investment. This article is for the purpose of information only and should not be seen as financial advice.

With festive decorations packed away and normal life resuming, it seems that lots of people’s thoughts are turning towards what a 2025 move could look like for them. Rightmove’s first House Price Index of the year shows that the national average house price has risen by 1.7% this month, to £366,189. This is what they had to say about that.

“Since recording our busiest ever Boxing Day for traffic and new listings, we’ve seen 11% more sellers come to market than at this time last year. This means buyers who’re starting their home search now will find the greatest amount of choice at the start of a year since 2015.

We’ve seen a 9% annual increase in the number of buyers contacting agents about properties for sale, while the number of sales being agreed over the same period is also up by 11%.

What happened to house prices this month?
This new year jump in house prices is the largest increase we’ve seen at the start of the year since 2020, and we’ve also recorded the busiest start to a year for Mortgage in Principle applications. Showing that lots of people coming into the new year are considering how much they might be able to afford when applying for a mortgage.

While an increase in buyer choice has led to more enquiries and sales agreed, it also means that there is growing competition amongst sellers looking to find a buyer. So, we could see some sellers find that they’ve have been overly optimistic on pricing when bringing their home to market and need to make a reduction further down the line.

It’s also worth considering that average asking prices are still £8,942 below the peak we saw in May 2024 – a reflection of ongoing buyer affordability constraints.

What do the experts think?
It’s been a busy start to the year, and if the trend continues into these early few months of the year, we’re likely to be set up for a busy Spring moving season, which is typically the busiest time of year for the housing market.

However, despite the recent flurry of activity, some uncertainties remain on the horizon, such as what could happen to interest rates, and the impact of increased stamp duty for many home-movers from 1 April.

Our property expert, Colleen Babcock, says: “It’s important to look at the bigger market picture. Many buyers are still affordability-stretched, with high mortgage rates restricting borrowing power and limiting what they can afford to pay. Meanwhile, first-time buyers have seen support schemes reduce and some also face higher stamp duty fees from April, all while contending with record rents and trying to save up for a deposit.

“Our early-year snapshot shows a promising start to 2025. However, the market needs a boost for that momentum to be sustained, in the form of early and ongoing Bank Rate cuts, which should hopefully help to reduce mortgage rates. Some further support for first-time buyers would also be welcomed, particularly in more expensive areas of the country.”

What could happen next?
Looking ahead, we anticipate that 2025 will remain a buyers’ market, owing to a greater choice of homes to choose from, and longer average times to find a buyer. You can read more about our experts’ predictions for the year in our 2025 housing market forecast.

In terms of the coming months, all eyes will be on the implications of the stamp duty deadline, and the Bank of England’s future decisions on interest rates. Our mortgage expert, Matt Smith, says:

“News of high government borrowing costs was swiftly followed by better-than expected inflation figures, highlighting how quickly the mood can change. The markets are still banking on a cut in February, but after that it becomes uncertain. I think we’ll need to get settled into the year a little more before the direction of travel for rates this year becomes clearer.”

 

Modified article taken in part from an article from:  Rightmove

If you liked this article, you may enjoy this one: Record breaking bounce for 2025

 

Important Information
All property sales and the financial advice that surrounds them are as unique as the people engaging in the transaction. It is important to not decide without seeking professional advice. If you want to sell your home and are considering redecorating before marketing, speak to one of our Property Professionals to get the best advice for presenting your home for sale before making any investment. This article is for the purpose of information only and should not be seen as financial advice.

Estate Agency today report that buyer demand is already tracking 14% ahead of early 2024, this is based on claims by Zoopla  – but the question is, is it down to marketing or the Stamp Duty rush? This is what they had to say:

“Data from the portal shows new sales agreed are up 15% compared to the first week of 2024.

In a boost to agents, Zoopla said vendor sales leads have increased by 125% in the first week of January compared with Christmas Eve, while valuation leads through the portal are 30% more likely to be looking to sell than they were a year ago. Sessions were also up by 113% for the same period, Zoopla said.

Zoopla credits the rise to its new marketing campaign and said there has been a 12% in rise in listings per branch compared with the start of 2024.

This activity could also be due to buyers and sellers looking to beat the drop in Stamp Duty thresholds in April.

Alex Rose, director of sales at Zoopla, said: “It is incredibly encouraging to see the property market off to a flying start in 2025, with the momentum from 2024 continuing over into 2025 and further boosted by the launch of our major new marketing campaign on Christmas Day. This is already paying dividends for Zoopla agents with the uptick in vendor leads and sessions on our website a clear indication of this.

“We are dedicated to helping consumers to win at moving but also in attracting more motivated movers ready to take action, ultimately driving better outcomes for our customers.”

 

Modified article taken in part from an article from:  Estate Agency Today 

If you liked this article, you may enjoy this one: Record breaking bounce for 2025

 

Important Information
All property sales and the financial advice that surrounds them are as unique as the people engaging in the transaction. It is important to not decide without seeking professional advice. If you want to sell your home and are considering redecorating before marketing, speak to one of our Property Professionals to get the best advice for presenting your home for sale before making any investment. This article is for the purpose of information only and should not be seen as financial advice.

Boxing Day has long been known for its traditional ‘bounce’ in housing market activity, as after the quiet of Christmas Day, people’s thoughts quickly turn to what a new year, and a new home, could look like. This year, that bounce reached record-breaking levels, with 2024 marking the busiest Boxing Day ever for both new property listings and traffic to Rightmove, as home-hunters and sellers began preparing for their 2025 moves. Here’s what Rightmove had to say about it:

“Our data shows a 26% increase in the number of new properties listed for sale compared to Boxing Day 2023, which previously held the record. And this sharp rise reflects a growing trend for homeowners seeing the post-Christmas period as an opportunity to get ahead of the busy January moving season.

Nearly half (46%) of homes coming onto the market were ‘second stepper’, three- and four-bedroom homes. Smaller homes, popular with first-time buyers, made up 35% of listings, while 18% were larger, top-of-the-ladder properties. Regionally, the South East led the way in terms of the volume of new listings, followed by the East of England and the South West.

But it wasn’t just sellers contributing to this year’s ‘bounce’, as home-hunters were also on the lookout for their potential next home this festive season. Enquiries sent to estate agents about homes for sale were 20% higher than Boxing Day 2023, as would-be buyers took advantage of the increased choice. And we saw the highest number of Boxing Day visits in history, surpassing the previous record set in 2021.

Our Chief Data Officer, Steve Pimblett, says: “We’ve seen a record-breaking Boxing Day, not only for people turning to the Rightmove platform once the Christmas Day festivities are over, but also for home-movers taking action and getting ahead with their 2025 moves. While it’s very early days, these first indicators are positive signs for a busy start to the year for agents.”

Boxing Day’s surge in activity has set a positive tone for the new year housing market. With more homes available and buyers eager to make their moves, these early signals could point to a strong 2025 for both home-movers and estate agents.”

 

 

Modified article taken in part from an article from:  Rightmove

If you liked this article, you may enjoy this one: 2025 Housing market forecast

 

Important Information
All property sales and the financial advice that surrounds them are as unique as the people engaging in the transaction. It is important to not decide without seeking professional advice. If you want to sell your home and are considering redecorating before marketing, speak to one of our Property Professionals to get the best advice for presenting your home for sale before making any investment. This article is for the purpose of information only and should not be seen as financial advice.

Are you thinking that 2025 could be the year you make your move? Then you’re likely wondering what the next 12 months could hold for the housing market. Rightmove published a great article with insights from their  in-house experts. Take a look at some of the things they said in order to make sure you start your moving journey as prepared as possible.

1. 2025 will still be a buyers’ market

Rightmove talked about 2024 being a buyers’ market, and next year is set to be no different. Things like an improved choice of homes for sale and longer average time to sell means home-buyers will continue to have the upper hand when it comes to agreeing a sale.

But what could happen to house prices? Well, their experts predict that average asking prices will increase by 4% by the end of next year, which, even though the largest growth they’ve predicted since 2021, is in-line with the long-term average. For context, the pandemic years of 2020 to 2022 saw extraordinary price growth, driven by lots more people looking to move than there were homes for sale.

They expect around 1.15 million completions to happen in 2025, which is an increase on recent years. This activity reflects improving market conditions, but sellers will still need to price competitively in order to find a buyer.

2. Mortgage rates look set to fall, but not to historic lows

Five-year and two-year fixed rates could drop to around 4.0% in 2025, down from the current 4.83% (5-year fixed) and 5.08% (2-year fixed) averages*.

This reduction in average mortgage rates is tied to predictions of four Bank of England Base Rate cuts in 2025. But as always, external factors like geopolitical events and inflation could still change the future direction of rates.

For those deciding between fixed-rate options, two-year deals may become increasingly attractive as their costs align more closely with five-year rates. This trend reflects shifting preferences, with shorter terms potentially offering better flexibility.

While lower rates are likely to boost buyer confidence and affordability, Rightmove suggest we won’t see a return to ultra-low mortgage rates.

*Rates from 10th December 2024. These rates are provided by Podium and are an average based on 95% of the mortgage market. All rates are based on products with a circa £999 fee.

3. Stamp duty changes impacting buyer activity

From April 1, stamp duty rates are set to rise, which could mean increased buying costs for some home-movers. Rightmove’s data has shown a rush among some buyers aiming to complete their purchases before the deadline. They state that the number of first-time buyers that are active in the market and sending enquiries to agents is 13% ahead of the same period last year. 

The availability of stamp duty-free homes for first-time buyers varies by region. While only 8% of London homes will qualify, over 70% of properties in the North East fall within the new £300,000 threshold.

Rightmove’s property expert, Tim Bannister, says: “Stamp duty charges rising from 1st April means we are likely to see a particularly busy first three months of the year as first-time buyers, home-movers and investors all try to complete on planned purchases and avoid higher charges. The effects of stamp duty rising will be felt for the rest of the year too, and we may see some negotiation tactics play out, particularly on properties close to the £300,000 mark, as both buyers and sellers try to mitigate their higher costs through the price agreed.”

4. Remortgaging will be a big focus for mortgage lenders

If you’re nearing the end of a fixed-rate mortgage deal, remortgaging will likely be on your radar in 2025. Many homeowners who secured five-year fixes during the pandemic, or two-year fixes after the mini budget will face the decision about their next mortgage as their deals come to an end.

Rightmove’s mortgage expert, Matt Smith, says: “It’s likely to be a mixed year for the market. Those who took out peak-mortgage rate two-year fixes after the mini-Budget will see their deal come to an end and will likely find themselves with lower costs next year. By contrast, many movers will be rolling off a low five-year fixed rate agreed during the busy market of 2020 and will see costs rise. With remortgaging and product transfers set to be an important theme for lenders next year, we’ve launched a remortgage rate tracker to show the latest trends in this sector and monitor lender behaviour next year.”

5. Expect a London resurgence

In terms of price growth, London has lagged behind the rest of the UK in recent years. The average asking price for homes in the capital has risen by 12% over the past five years, compared to 21% nationally.

But factors like the return of a five-day office-based working week for some companies, and renewed interest from international buyers, are expected to drive up demand in the capital. Our experts expect London price growth to be in-line with, or maybe even marginally ahead of, national price rises in 2025.

 

Modified article taken in part from an article from: Rightmove

If you liked this article, you may enjoy this one: A forecast of mortgage rates and market activity in 2025

 

Important Information
All property sales and the financial advice that surrounds them are as unique as the people engaging in the transaction. It is important to not decide without seeking professional advice. If you want to sell your home and are considering redecorating before marketing, speak to one of our Property Professionals to get the best advice for presenting your home for sale before making any investment. This article is for the purpose of information only and should not be seen as financial advice.

Curious about what is in store for the property and mortgage industry? Introducer Today published an interesting opinion piece by Graham Norwood. This is what he reports:

“As we enter 2025, the mortgage landscape shows signs of settling into a more stable rhythm, creating a positive outlook for buyers and homeowners alike,” Said Sarah Thompson Managing Director of Mortgage Scout part of the Leaders Romans Group.

“Starting in early 2024, we saw interest rates at a peak due to efforts to tame inflation. However, as the year progressed, the market has shown encouraging signs of stability, with the Bank of England carefully managing adjustments to keep things on a steady course. Although many hoped for a rapid decrease in rates, the bank’s gradual approach prioritises a balanced recovery, setting up a smoother environment for the year ahead.

“Fixed mortgage rates across lenders, including NatWest and Barclays, have remained conservative.

“While they may have nudged upward recently due to longer-term predictions, many lenders are now offering more competitive two-year fixed deals, giving borrowers flexibility and options in an environment where interest rates are expected to be stable rather than volatile.

“This consistency means borrowers can plan with confidence, and those on shorter fixed-term deals are well positioned to take advantage of future shifts.

“Looking forward, house prices are expected to rise by approximately 3% in 2025—a healthy pace that suggests steady value growth without the risk of sudden price hikes.

“Buyers who take action this year could see the benefits of rising property values as the market gains strength. The projected base rate for 2025, anticipated around 3.75% by the end of the year, also signals a more predictable environment for both buyers and existing homeowners, as mortgage repayments are expected to stabilise rather than fluctuate.

“For those considering a new mortgage or thinking about stepping onto the property ladder, the current landscape offers plenty of opportunity. With prices likely to continue their upward trend, waiting for significant rate drops may not yield the savings some expect. In fact, buying sooner could allow you to lock in value before house prices rise further.”
 

Modified article taken in part from an article from:  Introducer Today 

by Graham Norwood

If you liked this article, you may enjoy this one: Boost for buyers as mortgage lenders start cutting rates

Important Information
All property sales and the financial advice that surrounds them are as unique as the people engaging in the transaction. It is important to not decide without seeking professional advice. If you want to sell your home and are considering redecorating before marketing, speak to one of our Property Professionals to get the best advice for presenting your home for sale before making any investment. This article is for the purpose of information only and should not be seen as financial advice.

 

 

Chancellor Rachel Reeves has delivered her Autumn Budget, but what does it mean for the housing market? Rightmove published an article giving a breakdown of its potential impact. This is what they had to say:

“Ongoing cost of living pressures are likely to have contributed to the large amount of coverage and speculation the Budget has received in recent weeks. Mortgage rates remain high, with our recent study showing that the average first-time buyer mortgage payment is £350 higher than five years ago. And household energy bills, while down from their 2022 peak, rose by 10% this month under the latest energy price cap.

We recently surveyed over 34,000 people to find out what they wanted to see from the new government. An overwhelming majority of renters (60%) said they wanted to see more support for first-time buyers, while simplifying the home-buying process was the most important thing for existing home-owners.

• What changes were announced for housing in the Autumn Budget?

Housing announcements included £5 billion government investment to deliver Labour’s housing plan, with a £500 million boost to the Affordable Homes Programme. Investment is planned for sites across the country, such as Liverpool Central Docks, with 2,000 new homes and a transformation of the waterfront.

There will also be £25 million put towards the delivery of 3,000 energy-efficient new homes across the country, with a target of 100% of these being affordable.

Capital Gains Tax on residential property will remain unchanged.

The government has also pledged to engage with industry on plans to make the Mortgage Guarantee Scheme permanently available to support lending at 95% loan-to-value.

• What’s happening with stamp duty?

There was no mention in today’s Budget of the extension to the current stamp duty relief for first-time buyers, which is due to end in March 2025.

Stamp duty is a form of tax paid to the government when buying property or land. And the amount buyers pay varies based on the cost of the property, and whether you’re buying a home to live in, or an additional home.

The stamp duty surcharge for those buying second homes, such as landlords buying properties to rent out, is set to rise by 2% from 31 October 2024, increasing from 3%, to 5%.

Our property expert, Tim Bannister, says: “Increasing stamp duty on additional home purchases means that, based on the average asking price for a home, a landlord could face an additional charge of more than £7,000 from tomorrow. In the short-term, some landlords may need to pause for thought, but in the longer-term we expect it becomes another charge that landlords become accustomed to considering.”

The previous Conservative government adjusted stamp duty thresholds until March 2025, which meant that home-movers would pay lower stamp duty fees, and in many cases (mostly for first-time buyers), meant no stamp duty to pay at all. There were no announcements around an extension to the current elevated thresholds, meaning these are set to drop back at the end of March 2025. Tim says: “With the rate at which no stamp duty is charged for home-movers due to fall from £250,000 to £125,000, anyone purchasing a property over this amount could face paying up to £2,500 more in stamp duty land tax. Meanwhile, the threshold rate at which first-time buyers do not pay stamp duty is likely to fall from £425,000 to £300,000. If a first-time buyer buys a property at the average UK price of £370,759 they will pay £3,538 in stamp duty from March 2025, compared with nothing now.”

“We may now see a rush of buyers, particularly those purchasing for the first time, either bringing their plans forward or trying to get their deal done before charges go up. It currently takes a lengthy 152 days on average to complete a property transaction once a sale is agreed, which would mean agreeing a deal tomorrow to complete on time. While this is an average and many will be hoping to complete more quickly, it highlights that those who are hoping to avoid higher charges will need to act quickly”, Tim adds.

The number of properties affected by the change in stamp duty thresholds varies by region. You can take a look at the percentage of homes currently free from stamp duty for people buying their first home, and how that will change after March 2025.

• Capital Gains Tax remains unchanged

We saw some trends emerge in the housing market in the run up to the Budget, off the back of several anticipated changes. One of these talked-about changes was an increase to Capital Gains Tax, which could have seen landlords pay increased tax on any income made from rental properties.

Earlier this year we saw a record number of former rental homes for sale as some landlords made the decision to sell their properties as a result of the rumoured tax change, along with other additional costs for landlords that have grown over the years. However, today’s budget has confirmed that the current rates of Capital Gains Tax on residential property will remain unchanged.

• What’s happening in the housing market right now?

We’ve seen strong levels of activity in the typically busy autumn season, and lots more people looking to get on with home moves than we saw in the more muted market of 2023. The number of sales agreed is up 29% compared to the same time last year, while the number of people sending enquiries to estate agents about homes for sale is up 17%. On top of that, buyers will also find more choice of homes, with the number of homes for sale up 12%.

While there’s lots of activity in the housing market, we did see lower-than-average growth in house prices this month (+0.3%), compared to the seasonal average of 1.3%. This shows that the market is still price sensitive, and sellers coming to market need to set a realistic asking price to find a buyer.

Modified article taken in part from an article from:  Rightmove

If you liked this article, you may enjoy this one: Interest rate cut for the first time since 2020

 

Important Information
All property sales and the financial advice that surrounds them are as unique as the people engaging in the transaction. It is important to not decide without seeking professional advice. If you want to sell your home and are considering redecorating before marketing, speak to one of our Property Professionals to get the best advice for presenting your home for sale before making any investment. This article is for the purpose of information only and should not be seen as financial advice.

There’s no doubt that putting your home on the market is a stressful experience, but what about if selling property is your day job? Surprisingly, even then, it’s not all plain sailing.

Whether it’s trying to sell at the wrong time of year or choosing an estate agent who overvalued their home, MSN reported on an article where a journalist spoke to three estate agents with lots of experience in the field, and even they found that being on the other side of the fence isn’t that easy.

That said, their personal experiences have taught them some important lessons – which you can learn from, too. This is what they said:

‘I overlooked how much first impressions matter’

While Bola Ranson’s job is to market property via his commercial and residential agency Ranson Estate Agents, based in London’s Canary Wharf, he has run into issues when selling for himself. 

He tried to sell a two-bedroom, two-bathroom flat he owned in a modern, purpose-built block in Westminster Bridge Road in London in 2023, but found there was little interest because of its décor.

“One of the biggest mistakes I made was underestimating the importance of staging and minor renovations. I had one property that was a little tired and, despite being a sound one, it needed a lick of paint,” he said. “The skirting was slightly damaged; the bathrooms needed a little grouting. I believed that the charm and inherent value of my property would speak for itself, but I overlooked how much first impressions mattered to potential buyers.”

As a result, the property stuck on the market, and he eventually had to withdraw it to do the renovations. “Simple updates like a fresh coat of paint, modern fixtures, and decluttering could have significantly increased the appeal and value of my home.”

When selling another flat Mr Ranson has found that timing the sale of your property is of utmost importance if you want to generate interest and get a good price.

“Listing my house during the summer holidays turned out to be another significant mistake. Many potential buyers travel during the summer months of July and August and return in September.”

The property in question was a two-bedroom, one-bathroom flat near City Airport in London’s Docklands, which Ranson tried to sell in 2022.

“I once listed my property in June. I thought the warm weather and long days would attract more potential buyers, envisioning my house filled with interested families. However, I overlooked a crucial aspect: many prospective buyers were on holiday. As a result, viewings were disappointingly low, and the interest in my property was minimal.”

‘I went with the agent who gave me the highest valuation’

Before setting up her own independent estate agency in Yorkshire, Claire Roberts, owner of Rutley Clark, ran into problems trying to sell her home by choosing the “wrong” agent. “I was trying to sell my first home, a two-bedroom terrace house in Barnsley, in 2007 – a few years prior to becoming an estate agent myself,” she says. 

“My mistake was that I chose an estate agent based on who gave me the highest valuation, without questioning what the valuation was based on. In hindsight I suspect it was given deliberately high in order to entice me to instruct them – it worked.”

While Ms Roberts received three offers in the first few weeks of marketing, they were all significantly below the asking price.

“I rejected the first two as I felt I was losing out on a lot of money – in reality, I never had that money, and my house was never worth that higher figure. I reluctantly accepted the third offer in this region as it became clear no one was going to pay the asking price or even close to it,” she says.

“The sale was progressing rather slowly (another learning here was that you either choose an estate agent who works hard to get the sale to complete, or you do it yourself). Unfortunately, the buyer withdrew about six months in, and, by this time the credit crunch had hit, mortgage rates had rocketed and house prices had plummeted.”

In another bid to get her house sold, Ms Roberts drastically reduced the asking price – but to no avail. She had to eventually give up on selling the house altogether and rent it out, changing her own moving plans as a result.

“Had I gone with the agent who gave me the lowest, and probably most realistic valuation, I would most likely have sold at the height of the market for a price I could only dream of a year later.

“The learning from this was to think carefully when choosing an estate agent to work with, don’t be swayed by the highest valuation or the lowest fee.

“Choose an estate agent who is willing to give you the best advice (even if it isn’t quite what you want to hear), can back up the reasons why they have valued the house at the price they have with data, and will produce the best marketing to get you plenty of interest and give great service throughout the process right through to completion.”

‘We accepted the agent’s decision not to do professional photos’

Liam Gretton runs Liam Gretton Estate Agents in the Wirral, but thought he was making a sensible decision using someone else to sell his own home – a two-bedroom, semi-detached cottage with views of Liverpool’s Anglican Cathedral – in 2019. 

“Despite my experience as a bespoke estate agent, I chose to step back from the direct handling of enquiries, viewings, feedback and the emotional aspects when selling our own home,” he says.

The property was slightly unusual. Built in 1810 and “a bit like a Tardis”, it appeared modest from the outside but was surprisingly spacious internally.

“While I had a clear understanding of our home’s market value, the agent suggested a slightly lower price to encourage competing offers. Trusting their expertise, we followed their advice,” he says.

“Our first misstep was accepting their decision to take photographs themselves. I firmly believe that professional photography is crucial for showcasing a home effectively, but we took on board their judgment, hoping to learn something new.”

After two weeks of no viewings and minimal marketing feedback, Mr Gretton received a call from the agent he’d instructed, suggesting a price reduction.

“To me, as an agent, this is a standard default setting. However, as a seller, it is disheartening because I’ve been advised one thing and told to do another.”

Mr Gretton decided to terminate the agent’s services and marketed the property himself. “We listed the property at £20,000 above the agent’s recommended price, confident in our assessment of its market value and target demographic. Within the first 14 days, we received nine enquiries and three formal offers.”

Taking the reins in this way proved to Mr Gretton that there is a very real value in choosing an estate agent with professional training, market knowledge and, in his case, the understanding of what buyers are looking for with unique homes.

 

 

Modified article taken in part from an article from:   MSN

If you liked this article, you may enjoy this one: Tips for selling your home

 

Important Information
All property sales and the financial advice that surrounds them are as unique as the people engaging in the transaction. It is important to not decide without seeking professional advice. If you want to sell your home and are considering redecorating before marketing, speak to one of our Property Professionals to get the best advice for presenting your home for sale before making any investment. This article is for the purpose of information only and should not be seen as financial advice.

 

 

The Bank of England (BoE) has announced it will reduce the Base Rate to 5% this month, a reduction of 0.25%, and the first cut in four years. The Base Rate had been held at 5.25% since August 2023, after 14 consecutive rises. But what does that mean for mortgages? This is what Rightmove had to say:

“The Bank had been raising, and holding, rates to tackle high levels of inflation, which was in excess of 10% in early 2023 – way above the government target of 2%. It was announced in June that inflation had fallen back to its target of 2%, and inflation remained at the same level in July.

There had been much speculation around how the Bank might vote today, with the markets predicting an equal chance of an interest rate hold, and a 0.25% cut.

The split opinion around whether the Bank might hold or reduce rates today was related to ‘service inflation’ remaining stubbornly high in the month to June. This is inflation relating to ‘services’ – such as hospitality and culture – rather than the ‘goods’ that might go into your basket of shopping.

The Bank’s focus is to strike the right balance between lowering inflation and keeping the wider economy healthy. This drop shows the Bank’s belief that its plan to control inflation is working. And that to continue to hold rates may have a negative knock-on effect on businesses and households, further down the line.

What’s happened to mortgage rates recently? 
Back in January, we saw an unexpected rise in inflation, which resulted in mortgage rates edging up throughout the spring. But off the back of positive inflation news over the last few months, which saw inflation return to its 2% target, we’ve seen more settled mortgage rates.

Off the back of the certainty brought by a new government, and mortgage lenders competing for new business, we’ve seen mortgage rate drops gather pace in the last couple of weeks. In fact, we saw the arrival of the first sub 4% rate seen for many months for borrowers with larger deposits, and we can expect more lenders to follow suit in the coming weeks.

The average 5-year fixed rate is down from 6.08% in July 2023, to 4.87% this week, and the average 2-year fixed rate is down from 6.61% in July, to 5.25%. You can check the current average mortgage rates for different terms and deposit sizes here, which we update weekly.

What do the experts think? 
Our mortgage expert, Matt Smith, says: “The highly anticipated Base Rate cut has finally arrived, and while those looking to take out a mortgage soon shouldn’t expect to see drastically lower mortgage rates, we would expect the downward trend we’ve started to see continue. This sets us up for hopefully further cuts to come, and when we have seen further reductions to the Base Rate, people should really start to see the impact. However, it’s important to keep in mind that mortgage rates are widely expected to eventually settle at higher levels than previously, with the market view that Base Rate may eventually fall to about 3.25%.”

What does the Base Rate reduction mean for my current mortgage? 
Changes to the Bank’s Base Rate can impact how much interest you’ll pay on loans, including mortgages. If you’re on a fixed-rate deal, your monthly payments won’t change until the end of your deal. And if you’re on a tracker mortgage, or a variable rate mortgage that follows Base Rate changes, this month’s Base Rate reduction will mean your monthly payments will take on this drop.

If you’re coming to the end of your fixed-rate mortgage soon, you’ve probably already started to think about the rate you’ll be offered on your next deal.

If you’re thinking of moving home soon, a good way to find out how much you could borrow is to use a mortgage calculator. You can get a personalised result by applying for a Mortgage in Principle, which will take you one step closer to a mortgage offer.

In July 2023, the Mortgage Charter was launched to help those struggling to meet their monthly payments, as well as borrowers who are coming to an end of their fixed rates soon.

The Mortgage Charter encourages lenders to be flexible and offer borrowers the chance to lock in a new deal up to six months before their current rate ends. Of course, borrowers can also look at moving to another lender – commonly known as remortgaging – but this can take longer, as you have to go through a normal lending process, such as income checks, the legal process, and maybe a valuation of your home.

This all takes time, and you would want to make sure you’re looking around a few months before the end of your current deal to avoid falling onto your lender’s on to a Standard Variable Rate – which will cost more than the repayments you’d have made on a fixed rate mortgage. The current average for SVRs is 8.21%

What could the Base Rate reduction mean for affordability? 
Lenders’ ‘stress test’ calculations – which is how they calculate whether someone could afford a mortgage were their repayments to jump considerably – are directly linked to the Standard Variable Rates that we just talked about above.

The ‘stressed rate’ is usually the lender’s SVR, with at least 1% added on top. So, if lenders’ SVRs reduce in line with this Base Rate cut, we might start to see affordability improve, because the stressed amount will now be lower than if Base Rate was at 5.25%.

Will interest rates drop further? 
The Bank of England’s Monetary Policy Committee meets every six weeks to discuss and vote on whether interest rates should go up or down, or stay the same.

History has shown that after interest rates have increased over time, they have remained flat before starting to come down. So while we’re now seeing the beginning of the downward curve, it’s extremely unlikely that rates will drop back to the historic lows we saw back in 2021.

Right now, it’s looking more likely that, barring any shocks to the wider economy, the Base Rate will continue to edge downwards for the rest of the year and into 2025 – the market is currently forecasting one more rate cut of 0.25% by the end of the year. Though as always, this could change depending on what happens in the broader economic environment.

The next decision on interest rates will be announced at 12pm on 19 September 2024.

 

Modified article taken in part from an article from:  Rightmove

If you liked this article, you may enjoy this one: Boost for buyers as mortgage lenders start cutting rates 

 

Important Information
All property sales and the financial advice that surrounds them are as unique as the people engaging in the transaction. It is important to not decide without seeking professional advice. If you want to sell your home and are considering redecorating before marketing, speak to one of our Property Professionals to get the best advice for presenting your home for sale before making any investment. This article is for the purpose of information only and should not be seen as financial advice.

Labour leader Sir Keir Starmer will have the removal vans booked this morning after the General Election result after Labour won the General Election by a landslide yesterday.

Election results are still coming in this morning and the first Budget and fiscal update may not come until at least September, which is when Labour is likely to unveil its major political announcements.

It is so far unclear what will happen on estate agency-specific issues such as regulation and recent parliamentary reviews into the home buying and selling process. However, the Labour Party election manifesto already gives an indication of what agents can expect and Estate Agency today were quick to publish their thoughts on what might happen next. Here’s what they had to say:

“First-time buyers are set to see their Stamp Duty exemption reduced back to £300,000 from April 2025 and Labour has promised a Freedom to Buy scheme.

Matt Thompson, head of sales at Chestertons, said: “Labour’s announcement to lower the Stamp Duty threshold for first-time buyers from £425,000 to £300,000 in April 2025 has left many wondering if the party will introduce any major initiatives that will make it easier to get on the property ladder.

“Buyers will be looking for Labour to fulfil its pledge to introduce the Freedom to Buy scheme but are concerned that buying a first home continues to be challenging.

“Labour’s plan to increase the already higher Stamp Duty rate on purchases of residential property by non-UK residents by 1% is unlikely to have a major impact on London’s property market.

“The capital remains a global city that attracts international professionals and investors who will simply adapt their property search by lowering their budget or by buying in a part of the city where they get more property for their money.”

Another property market driver could be plans to add VAT to private school fees.

Nigel Bishop of Recoco Property Search said: “This will leave many parents unable to afford private school education and inevitably impact on the property market by boosting demand for properties in close proximity to good state schools. Properties in these catchment areas can already ask a 20% premium and a politically-caused boost in demand for such homes will create an even more competitive market for buyers.”

However, Estate Agent Today has spoken to other property professionals who query whether parents would pay moving costs such as Stamp Duty and buying a new property just to save a few thousand pounds on extra school fees.

Propertymark said it is crucial that housing policy is placed front and centre for the Labour Party moving forward, as it looks to take on a term in Downing Street.

The agency trade body called for a wide-ranging overview of how different demographics will be catered for within the housing mix and said it is keen to see fundamental planning and support outlined to assist first time buyers on their property journey.

Nathan Emerson, chief executive of Propertymark, said: “Propertymark welcomes wide-ranging engagement with the new Labour Government to help steer an objective pathway forward for the housing sector. We have seen a chronic undersupply of affordable new housing for many years.

“Sustainable housing is the foundation for any strong economy and there must be clear and well thought out plans that inspire investment and improve supply moving forwards. We want to see long-term cross-party cooperation that delivers the right kind of homes in areas they are desperately needed.”

One thing that agents do agree on though is that the market could be set to get more busy.

Bishop added: “In the run-up to the General Election we already saw house hunters, who previously paused their activity to observe the political development, resume their search. Now that a party has been elected and economists predict a likely interest rate cut over the coming months, we expect further buyers to follow suit.”

 

 

 

Modified article taken in part from an article from:   Estate Agent Today

If you liked this article, you may enjoy this one: Boost for buyers as mortgage lenders start cutting rates  

 

Important Information
All property sales and the financial advice that surrounds them are as unique as the people engaging in the transaction. It is important to not decide without seeking professional advice. If you want to sell your home and are considering redecorating before marketing, speak to one of our Property Professionals to get the best advice for presenting your home for sale before making any investment. This article is for the purpose of information only and should not be seen as financial advice.