Now that wasn’t Expected!

Unexpected-property-activity

The first week of Estate Agents being allowed to conduct house viewings has been a real eye opener, with the level of buyer activity much higher than anticipated which hopefully bodes well for a quick bounce back in the house market.

No doubt there will be some readers who will think, well you would say that wouldn’t you, in the hope of pepping up the market, but I can counter any such thought with some hard facts and examples, so here are a few case notes from the first week back.

New House Eversley – Under offer in three days

This fine new home by Aspire was placed on the open market on Monday 18th May at a guide £1,125,000.

By Thursday 20th May a sale was agreed to a proceedable purchaser.

Country House Eversley – Emerging Buyer Interest around £2.0m. guide

We took this property to the market a few weeks before lockdown, so viewings went on hold during the lockdown period.

Yesterday we had multiple viewings at the house and two offers have already been submitted. This home is typical of the kind of property that will be sought after in the emerging market of house buyers leaving London and other major towns and cities for rural living.

Do you have a country house for sale? We have a waiting list of buyers looking right now.

Right now the short to medium term outlook is positive and the biggest demand is for rural / semi-rural properties in all price ranges, but especially in the £1.5m. to £6.0m. sector.

So if you live in a country house and are looking to sell, this summer could be the best time to go to market. If you would like a free and confidential market appraisal contact your nearest McCarthy Holden branch.

Fleet – On £750,000 guide

With marketing help by way of a vendor inspired video tour during lockdown, this stunning detached house has gone under offer.

Blue Triangle, Fleet – Exchanged on guide £1.5m.

In just over one acre in one of the most desirable roads in Fleet, this imposing property was built by the renowned local builder Pool & Son in the 1930’s.

Fitzroy-Road-sold-fleet McCarthy Holden estate agents

As we said in last week’s market update, the prospect of house sales in the short to medium term is relatively easy to judge, because we are working with house buyers and sellers alike every day, so their motivations and the drivers of the market conditions are there for us to interpret.

House Viewing Protocols Working Well

The new way of conducting house viewings is going well, with strict social distancing protocols and excellent co-operation from vendors and purchasers alike.

Some of the social distancing protocols include the following.

• Only one viewer can be present at a time, no children will be allowed in a property (this is because avoiding the touching of surfaces is difficult with young children).
• The owner/tenant will leave property for the viewing.
• We will supply the viewer with disposable gloves and mask, subject to our supply allowing for this.
• The viewers will be allowed to walk around and asked not to touch anything.
• In order to maintain social distancing, the agent will not be able to enter every room with the viewer.
• When the viewing is completed, the agent will lock up the property and leave, then dispose of gloves and use hand sanitiser.

The House Market / Buyer Attitudes

We are impressed with the resilience of house buyers, who continue to remain upbeat about their moving plans. Furthermore, 95% of the sales arranged we had in place at the start of lockdown, continue to remain in place and in the past week many of those have moved forward to exchange and simultaneous completions..

Emerging Markets

In the last week there has been increasing signs of the biggest emerging market being driven by people wanting to leave London and other large cities or towns, to find a new home in a rural or village setting, yet remain within reasonable distance of London etc. That is a positive for the home owners we act for on the Hampshire / Surrey / Berkshire borders, especially those who live in property worth between £1.5m. and £6.0m. in our area of operation.

If you are selling a rural property, contact your nearest McCarthy Holden branch for a free and confidential property appraisal.

EMERGING MARKET PHOTO

The Weeks Ahead

Simply making hay whilst the sun shines!

 

John Holden – Chairman

House Market Update During Lockdown

cove week 5 icon

Relentless and here for a while

The bleak headlines about the impact of Covid-19 continue and of course our hearts are saddened by the relentless loss of life for frontline NHS staff and Covid-19 affected patients alike.

Any thoughts about how and when an early release from lockdown might occur, must of course be balanced with the high probability of new after waves of coronavirus cases occurring post lockdown, with perhaps the inevitable mini lockdowns being put in place from time to time. There are valuable lessons to be considered from past pandemics especially about the exit stages.

We can be certain that our exit from the current lockdown, will not mean a return to normal in many aspects of day to day life. It is likely we will continue with social distancing and simple matters like viewing property, will be conducted in a similar manner to that which occurred just before the lockdown started.

The House Market

As I mentioned in our last update, writing a few lines about the property market right now doesn’t seem that important in the current circumstances, but house sellers, landlords, buyers and tenants continue to seek insight, because the prospect of needing to move house is still a journey they will embark on post lockdown.

Buyer Attitudes

I remain impressed with the resilience of house buyers, who continue to remain upbeat about their moving plans. This positive attitude is supported by the fact the 95% of the sales arranged we had in place at the start of lockdown, continue to remain in place with vendors and purchasers keeping focused on the opportunity to exchange and complete some time soon.

Other mini indicators of buyer intent are told to me by staff, such as Matthew Fenn from our Fleet branch who has 27 buyers who want to view specific properties as soon as lockdown is over.

Contracts Are Exchanging

Some house sales are progressing to the exchange and completion stages during lockdown, mostly by exchanging and completing on the same day.

Two examples of this in the last week include a £400,000 guided house in Fleet (top image below) and stunning country house conversion in Winchfield at a guided sum of £1.250m. (video below). These special cases where exchange and completion can happen are frequently new house purchases where there are no chains.

VIVIAN EXCHANGED

Exchanged and completed last week

Play Video

Exchanged and completed last week

Working From Home

Creating new sales is virtually impossible due to viewing restrictions, but our negotiation staff are keeping closely in touch with buyers on our books, by phone, email, newsletter and even video presentations. This means that post lockdown we are already creating a list of buyers who want to view specific properties as soon a we are release from lockdown.

More Vendor Inspired Video House Marketing This Week

Many clients continue to ask if we could produce video content of their property if they sent us video clips and still photographs, this enabling them to go on the open market now.

Some of the latest collaborative results are below.

Preview – due to the market soon at Est. Guide £1,675,000

New to the market – Guide £850,000

This works by vendors sending us the video clips and then with some editing help from johnjoe.co.uk a promotional video tour is created.

We look forward to many of these collaborative home grown marketing initiatives in the weeks ahead.

The Week Ahead

In the week ahead we will be giving special focus to our new homes selection of properties for sale, because as we emerge from lockdown we believe the attraction of owning a new home will be higher than usual.

Right now we have 13 new homes development sites available for sale, showcasing a most diverse range of interesting properties for 2020, in amazing locations from rural Eversley in Hampshire, to Virginia Water in Surrey.

The developers we are representing in 2020 are as diverse in size and their personal history as you can imagine, but they all share the same passion for creating beautiful homes and leaving a legacy to their brand and reputation.

Click some of the links below to preview some of the new homes available.

We will provide another market update in a week or so, and you are of course welcome to subscribe free to our newsletter (just click the link near the bottom of our home page).

In the week ahead we will no doubt continue to think, reflect and pray about key workers and NHS people and the risks they face each day at these times. 

John Holden – Chairman and Managing Director

7 Bright Design Tricks to Maximise Light in Your Home

brighten your home

From curtains to decluttering and mirrored furniture, Luke Rix-Standing reveals nifty ways to give any home that dreamy light and airy feel.

Ask any interior designer: Light is one of – if not the – most important consideration in the layout of a home.

Quite apart from being essential (cooking in the dark is not advised), light provides the framework for a home’s aesthetic, and the foundation for its – to use a technical term – ambience.

It doesn’t matter how well you’ve feng shui-ed your cellar – if it’s lit by a single, flickering bulb, it’s still going to feel like the set of a horror movie.

Here’s how to make your home the brightest and best it can be, from streaming sunbeams to energy-saving LEDs…

brighten your home

Make a proper plan

Most people know that when it comes to light sources, more is usually merrier. But the result is that homeowners load up expensive fixings without taking care of even the simplest practical alterations.

For immediate improvement, a short recce goes a long way: Look at the location of your windows, what they’re illuminating, and what you want them to illuminate. Take a note of where the sun comes from in each part of the day, and if any rooms seem particularly drab and gloomy.

With your stock-take complete, move furniture that might be blocking a window’s view, and clear out cluttered windowsills. If you have several electric lights covering a space usually bathed in sunshine, rejig your room rather than spending a fortune adding to it.

Consider moving obstacles outside your home too. If your climbing hydrangea has launched a hostile takeover against your windowpanes, it’s time to call in the garden shears.

brighten your home

90% light, 10% dark

Assuming that you do, in fact, have windows, your next key point should be colour. Pure white surfaces can feel a little cold, but off-white or light cream is a shoo-in for walls and ceilings when cultivating a brighter feel.

Soft hues absorb far less light than dark ones, and for the most radiant rooms you should look beyond the masonry. Consider pastel-coloured cupboards, pale wood furniture, or light-hued decorations. There’s nothing wrong with a black leather sofa, or some statement, patterned wallpaper, but they won’t necessarily help your rooms retain light.

Aesthetically, many designers opt to add in darker trimmings. Cushions, knick-knacks and other smaller furnishings look great in dark grey or navy, and provide contrast without significantly sacrificing light.

brighten your home

Lots of mirrors

If you’re looking to increase your intake of natural light, mirrors are perhaps the most literal way of doing so. They reflect light that would otherwise be absorbed into the wall, and hanging one opposite a window sends daylight bouncing round the room.

Wall-mounted mirrors are a go-to for grooming as much as for decor, and fashion-conscious bedrooms often boast something free-standing and full-length. Next level homeowners could employ mirrored furniture – mirrored tables, mirrored wardrobes, even a mirrored chest of drawers.

Large mirrors give the illusion of a much larger, lighter space, and if the room feels bright and breezy, so too will its reflection.

brighten your home

Window dressing

Your windows are your main allies in your fight for light, so you’d be wise to give them plenty of tender loving care.

Blinds are a good bet for a light-heavy home, leaving the window entirely exposed when open and creating lovely lines of light when down. They can’t produce blackouts, so are less advisable in the bedroom of a light sleeper.

Light linen or cotton curtains are similarly appropriate – and can be hung in layers to more closely control the flow of light. Heavier, thicker fabrics like velvets and brocades are generally more accustomed to blocking light, while wide-slat shutters are flexible and channel a Mediterranean feel.

brighten your home

The lighting of the lamps

Natural light tends to gobble up the headlines, but artificial light is where the buck stops.

Let’s divide it into three stylistic varieties. Ambient lighting diffuses evenly through a room, and is usually the starting point for a larger scheme. Think ceiling lights, perhaps integrated with lamps on floors or tables.

Naturally, ambient lighting isn’t strong on contrast, so try some accent lighting to help instil separation. Accent lighting is brighter and much more directional, ensuring centrepieces like dining room tables get the focus they deserve.

Make sure these lights are not so concentrated that they behave like spotlights. You don’t want to channel a the sort of aggressive glare normally reserved for police interrogation rooms.

Finally, consider task lighting – very strong light sources marshalled for specific purposes. Think downward-facing desk lamps that can illuminate a keyboard clear as day, or a row of bulbs as floodlights for a worktop. There’s no point illuminating the corridor with pixel-perfect high-def, if your closet is so dimly-lit all your darker clothes merge into one.

Keep these principles in mind when allotting wattage in your home, and where possible try before you buy. Road-test bulb brightness, or better yet employ a dimmer switch.

brighten your home

Wash your walls

No, not with soapy water – in this context washing your wall means to splash light across a surface, creating the illusion that the whole room is aglow.

Consider vertical light fixings, that send a warm light upwards and downwards, creating a sheet-like glow across a wall. It’s better to bathe an area with one effective light source than pepper it with unattractive fixings.

brighten your home

Structural changes

For those with the time, inclination and, most of all, the money, there are plenty of home improvements that can turn dingy dungeon to gleaming greenhouse. Some are obvious – more and bigger windows, glass patio doors and so on – but others are slightly less intuitive.

Skylights are an oft-neglected sub-genre of window – the light comes straight from source and can often spread across an entire floor space.

Thick-set, dark-coloured doors can keep natural light from reaching the heart of your home, so consider glass panelling even on doors that don’t open into the air. Next-level homeowners can go one better by embracing a more open-plan layout throughout their dwelling.

Though not traditionally a light-emitting surface, even the floor can play its part. Opting for polished, well-finished hardwood, ceramic or stone can keep light ricocheting off your interiors like an underfoot mirror.

Tv’s Lorraine Kelly and George Clarke Reveal 2 Key Ways to Create Extra Space at Home

Lorraine Kelly transformed an unused conservatory, while George Clarke created a garden office. Gabrielle Fagan takes a look.

Who hasn’t felt at times that their home is shrinking? Growing kids, shifting towards working from home, or just having too much stuff can all make it seem like the walls are closing in.

Don’t despair though – there are ways to reclaim some much-needed space. TV’s Lorraine Kelly and architect and presenter George Clarke have done exactly that in their own homes.

Kelly has transformed a conservatory, while George has opted for a purpose-built home office at the end of his garden – both increasingly popular choices, as more and more people prefer to ‘improve rather than move’ to gain extra living space.

Take a look at their newly created retreats, which might just inspire some changes of your own…

Lorraine Kelly’s chic conservatory

“I’m so lucky to have a conservatory,” declares Kelly. She and her husband, cameraman Steve Smith, moved a year ago – downsizing from their Dundee mansion to a smaller house in Buckinghamshire – after their daughter Rosie, 23, left home.

Kelly, 59, wanted to create a comfortable area in her new home for ‘me time’, where she could gaze out on her garden and riverside view and be surrounded by her favourite possessions.

“I absolutely love Scandi interiors but I’m not too strict when it comes to sticking to one style,” she says.

“My personal style’s all about comfort; I’m not into minimalism. I personally love an eclectic home, I’m much more into interesting objects and having a lot of cushions and textiles. To me, home means somewhere you can just breathe out, cosy up and feel safe and happy.”

With help from online interiors brand, Wayfair, her conservatory – formerly an “underused area” which opens off from the kitchen – has been transformed.

“The conservatory’s so light and airy with gorgeous views, and now it’s a complete haven – a room full of light and happiness,” enthuses the presenter, clearly delighted to have somewhere to relax during time off from her busy career as host of her ITV morning show, Lorraine.

“It’s the perfect place to read the Sunday papers, have a cuppa, or just sit and have a chat with friends and family,” she adds.

Little details personalise the space. “I love the weathered penguin ornaments – it’s no secret they’re my favourite animal – and the pretty trays and faux plants scattered around,” says Kelly.

“We opted for a base palette of soft greys and neutrals to create a calming environment for Lorraine,” explains Nadia McCowan Hill, resident style advisor for Wayfair.

“This was off-set with inky blues, emerald green detailing and hints of glittering silver, reflecting the stunning river-side location and panoramic views.”

The results are a hit with Kelly, who enthuses: “My favourite items are the sofa, as it’s a beautiful colour and so stylish, and I adore the plump scatter cushions and cosy rugs. Angus, our pet dog, will just curl up at our feet and snooze – he just loves this room.”

Make the most of your conservatory

Here are McCowan Hill’s top tips for making a conservatory a year-round multi-functional space…

1. Work the space: “A conservatory can be so much more than just a sun room. Why not create a small home office in one corner? A simple corner desk won’t take up too much space, and sitting beside light flooded windows could make work a pleasure.”

2. Style it up: Classic shapes for furniture in Kelly’s conservatory were given a modern twist with jute and linen upholstery, and pouffes double as footstools or extra seating and give the space an informal feel. Textiles – think throws and cushions – can add a layer of texture and warmth.

3. Grow your greens: “For a plant-filled haven, use window boxes to grow light-loving herbs, a tiered vertical garden unit or open shelving potting benches to store garden necessities. Choose natural wood and metal finishes to complement the greenery,” she says.

4. Hang it up: Since conservatories lack wall space for hanging art, she advises opting instead for a selection of hanging baskets hung at different heights across one wall of windows as an eye-catching display. “For a more ‘boho’ look, put up a hanging chair and conjure a reading/daydreaming zone,” she says.

George Clarke’s home office

When you’ve run out of space and can’t extend up, down or sideways, consider building outdoors, suggests George Clarke – best-known for his Channel Four shows, The Restoration Man and George Clarke’s Amazing Spaces.

“Garden rooms are on the rise because they’re an adaptable space that can be used as a retreat, a place to entertain, to work, to get creative or even to sleep,” he says.

“My open-plan house doesn’t lend itself to having an office space so, like a growing number of people, I built a studio at the bottom of the garden. It’s where I come to leave behind all the chaos and noise in the house, do some work, read and focus.”

He credits Tetbury Charcoal Wave Header Curtains (from £163 including measuring and fitting, Hillarys) with transforming the space. “They soften the look of the room, create a cosy feel, improve the acoustics, and I can draw them to stop glare from the sun on the computer,” he enthuses.

House Buyers Ignore Brexit in January

house buyers ignore brexit image

With the first month of 2019 trading behind us, it appears that despite the chaos in the Palace of Westminster around Brexit, house buyers are simply getting on with making decisions around matters of day to day life, which are the drivers for a house move.

All of the McCarthy Holden branches experienced an uptake of buyer interest in January and the McCarthy Holden web site enquiry hits were up on the January 2018.

Whilst it is too early to comment on the market direction for 2019, it nevertheless appears that house buying decisions are mostly made by very localised factors such as schooling, access to work and general employment levels and family situations ranging from the three D’s (death, divorce and debt) through to the three N’s (new job, new baby, new beginnings).

high levels of house sales image

Amongst the Estate Agents in Fleet, our own branch had a particularly productive January with, witnessed by events such as £3.4m. worth of residential property sales exchanging contracts in just one 24 hour period.

As we said in our 2018 / 2019 market review, who knows, there might well be some pleasing outcomes to report at the end of 2019.

So, if you are considering a move this year, now is a great time to get ahead of the competition by calling one of our property experts for a free, no obligation, advice on how is best to market your home.

Hoping to get on the property ladder soon? 8 tips for First Time Buyers

It's a huge, expensive step but can be done - so soak up these expert tips, says Vicky Shaw. This year could be a bit uncertain for the housing market, which may be making first-time buyers feel somewhat nervous. However, some recent figures may offer some reassurance for those trying to make the jump onto the property ladder.

Research from Yorkshire Building Society suggests the number of first-time buyers getting on the property ladder with a mortgage in the last year, was at its highest level since 2006. Across the UK, 367,038 first-time buyers secured mortgages in 2018, up from 362,800 in 2017, the analysis suggests.

There are also some steps first-time buyers could take, which may boost their chances of bagging a property. “Buying a first home can be as daunting as it is exciting, but there are a number of simple steps people can take to prepare themselves and make the process as smooth as possible,” says Chrysanthy Pispinis of Post Office Money.

Here are Post Office Money’s eight top tips for getting on the property ladder…

first time buyer top 8 tips

1. Set a savings goal

Three-quarters (75%) say that saving for a deposit is the biggest hurdle to home ownership, with first-time buyers spending four years adjusting their lifestyle to save for their starter home, according to a survey of people who recently got on the property ladder. So setting a savings target early is important to keeping you focused and on track.

2. Factor in the additional costs of moving

Aspiring homeowners must not forget additional costs associated with buying a home, such as removal firms, estate agent fees and surveyors. It’s important to consider these costs in advance and save little and often.

first time buyer top 8 tips

3. Take time to talk

Parents – as the ‘bank of mum and dad’ – are playing an increasingly important role helping many first-time buyers onto the property ladder, loaning on average £24,347, according to Post Office Money. But of the one in six first-time buyers funding their home purchase from a parental loan, 87% have no proper agreement in place, its research also found.

Therefore, it’s important everyone involved is clear about the nature of their agreement, so that everyone’s expectations are aligned. This includes making it clear whether the money is a gift or a loan that needs to be paid back. Post Office Money has a ‘bank of mum and dad conversation guide’, which could help with such conversations. (postoffice.co.uk/dam/jcr:93ea6a47-6444-4ac8-8a22-c091054a3541/Mortgages-Advice-Doc.pdf)

4. Calculate how much you can afford to borrow

Once your savings pot is up and running, consider using an online affordability calculator to get an idea of how much you’ll be able to borrow based on your income and outgoings. Although this should be used as a guide, the information will help you focus on properties that are within your price range.

first time buyer top 8 tips

5. Know the (credit) score

Before getting a mortgage, you will be credit checked, so now’s the time to check your own credit report and ensure all the information it contains is accurate and up-to-date. A good credit score can be the deciding factor in not only getting approved for a mortgage, but also the rate you are offered. Plan now to start paying down any outstanding debt, be sure not to miss any agreed payments on utility bills or mobile phone bills, and try to make more than the minimum repayment in the six months before your mortgage application.

6. Find the right mortgage for you

There are lots of mortgages out there aimed specifically at first-time buyers, including some very innovative deals.

first time buyer top 8 tips

7. Research affordability hotspots

You may have your heart set on a popular area – but so will many other buyers.

On average, new buyers will end up moving 5.2 miles away from where they originally intended. Consider widening the net to make your budget go further, so you can buy more bricks and mortar for your money. You could try searching in up-and-coming areas, which may become future property hotspots, rather than places where property prices have already increased by a lot.

8. Know the local rate of sale

On average, it takes 102 days for a property to sell in the UK. Understanding the rate at which property sells in the area you’re looking to buy in can potentially help when making buying decisions.

If you are starting your home buying journey and would like local, financial or property advice please pop in to your closest office for a cup of tea and a chat with our team, they will be delighted to give you all the help you need.
Estate Agents in Fleet
Estate Agents in Hartley Wintney
Estate Agents in Odiham

The unknown, or a property market that bucks the Brexit fears?

estate agent sold board

The Market 2018

Let us start with 2018, which was peppered with challenging market conditions for residential property sales.

Because our trading year runs January to December we can report on the full picture for 2018, which may indicate the direction of travel for 2019.

Surprisingly, some branch productivity levels for house sale revenue was at or above 2017 levels, especially in the village locations. That outcome however doesn’t for one moment disguise the fact that during the first half of 2018 we saw one of the poorest levels of house sale transactions for some time, however, buyer positivity surfaced in the summer and remained reasonable through to December despite the increased chaos around Brexit.

When we say house sales were up in the second half of 2018, we are talking about house sale volumes not prices. Large house price gains are gone for a while, but like all markets when they rebound from a low they come back with a sharp and fast uptake.

The rental market performed extremely well in 2018, with a notable uplift in activity for high end rentals outside of London, especially in our core area of operation on the Berkshire / Hampshire borders.

Properties taken to the rental market in the £7,000 to £10,000 p.c.m. sector frequently saw rental offers from multiple tenants. This was driven by high end house buyers deciding to pop into a property rental for the next year or so, using some of the stamp duty funds they would have allocated on a property purchase around £2.0m. or £3.0m., and then wait and see how property values shape up post Brexit.

house let
High end rental activity compensated for house sales

One certainty

One thing that is certain, is that uncertainty impacts on the property market especially around the times of a General Election or a Referendum. How this uncertainty works its way into tangible outcomes for 2019 is not straightforward and varies in different house price sectors of the property market.

In the short term, house buyers generally will be more cautious and slower in their decision making. This doesn’t mean house prices will fall, because buyer demand remains steady and employment levels are excellent. There is the prospect of a flat market in respect of property prices, however, discerning house buyers are seeing the current market conditions as an opportunity to move whilst prices remain static. House sellers will sell successfully in the 2019 market, but they can’t expect a fancy or inflated price and must engage with the reality that over pricing will fail in a market where buyers are cautious.

Different sectors, different outcomes in 2019

Different market sectors will have different outcomes in the forthcoming months ahead. Buying decisions on property sales from around £250,000 to £1.5m. are mostly made by very localised factors such as schooling, access to work, general employment levels and family situations ranging from the three D’s (death, divorce and debt) through to the three N’s (new job, new baby, new beginnings). Decisions around such matters of day to day life will continue to be made by house buyers against the backdrop of political uncertainty, so house sales will be maintained at the current level with price sensitivity being the watchword.

Further up the property price sector, and especially in the £2.0m. to £6.0m range house buyers will be more influenced by global and political factors so we could see further negative price impacts in this sector. Savvy top end buyers are playing a waiting game, but they are there on our books and will respond to excellent marketing and a competitive price strategy.

House sellers and buyers should approach 2019 with realistic expectations, engaging positively with the new beginnings for the country and house moving opportunities and, who knows, there might well be some pleasing outcomes to report at the end of 2019.

We wish you a happy Christmas and the very best for 2019.

 

John Holden – Chairman and Managing Director McCarty Holden

POST BREXIT IMAGE LEAP

House of Horrors at number 10 so what next for the house market

image of Mrs May behind doors

High drama and high stakes on the political and Brexit front have set the scene for more uncertainty, so how will this impact on the domestic residential property market?

With the imminent prospect of a challenge to Theresa May’s leadership, the resignation of Cabinet ministers including Brexit Secretary Dominic Raab, seemingly no prospect of the draft Brexit agreement being passed by Parliament and the increased likelihood of a harder Brexit, there is now in place a wide range of serious uncertainty factors rarely seen conspiring at around the same time. Furthermore, with Mrs Mays party in revolt and many of her colleagues departing we don’t know yet, if a General Election is also around the corner.

One certainty

One thing that is certain, is that uncertainty impacts on the property market especially around the times of a General Election or a Referendum. How this uncertainty works its way into tangible outcomes is not straightforward and varies in different house price sectors of the property market.

In the short term, house buyers generally will be more cautious and slower in their decision making, and the impact on prices will mean large house price gains are gone for a while. This doesn’t mean house prices will fall, because buyer demand remains steady and employment levels are excellent. There is the prospect of a flat market in respect of price rises, however discerning house buyers are seeing the current market conditions as an opportunity to move whilst prices remain static. House sellers will sell successfully in today’s market, but they can’t expect a fancy or inflated price and must engage with the reality that over pricing will fail in a market where buyers are cautious.

Different sectors, different outcomes

Different market sectors will have different outcomes in the forthcoming months ahead. Buying decisions on property sales from around £250,000 to £1.5m. are mostly made by very localised factors such as schooling, access to work and general employment levels and family situations ranging from the three D’s (death, divorce and debt) through to the three N’s (new job, new baby, new beginnings). Decisions around such matters of day to day life will continue to be made by house buyers against the backdrop of political uncertainty, so house sales will be maintained at the current level with price sensitivity being the watchword.

Further up the property price sector, and especially in the £2.0m. to £6.0m range house buyers will be more influenced by global and political factors so we could see further negative price impacts in this sector. It’s perhaps no surprise that in 2018 we saw a significant uplift in house rentals in the £6,000 to £8,000 p.c.m. sector, driven by future potential house buyers who have decided to retreat into the luxury rental market and watch for when the top end house sales market starts to recover. Such recovery could be a year or so away, but one thing is for sure, all markets when they rebound from a low come back with a sharp and fast uptake. Savvy top end buyers know this and are playing a waiting game, or taking care of business now by buying at extremely competitive levels.

Respond with investment, no time for the faint hearted

Check out what McCarthy Holden are doing to maximise selling and letting opportunities for clients between Christmas and New Year. If you would like and up to date market no obligation valuation, go to our home page and click in valuation.

The Christmas and New Year 2019 magazine In The Country & Town

Phil Spencer shares 5 questions all buyers should ask when house hunting

As a survey reveals many buyers wish they'd known more about their property, TV's Phil Spencer shares his expert tips.

Phil Spencer home buyer questions

Buying a property can be a very lengthy process with lots of back and forth – but many buyers still end up wishing they’d found out just a few more crucial details before the deal was finalised.

California Shutters (californiashutters.co.uk) recently asked 1000 UK homeowners what they most wished they’d known about before purchasing their property: Competition for parking spaces came out tops (20%), followed by noisy neighbours (19%), high renovation costs (13%) and traffic noise (11%).

Oliver Robertson at California Shutters comments: “With all the challenges and decisions to be made when finding and choosing a new home, it’s easy to forget about the little things that will impact on your home life day to day. Whilst our survey shows most movers have a good awareness of problems like damp and pests prior to moving in to a new home, they can still be caught off guard by other things such as having to fight for parking spaces or deal with noise from next door or traffic from the road.”

Phil Spencer home buyer questions

A similar survey of first-time buyers, by My Home Move Conveyancing, found that the level of work needed on the property was the most common thing buyers wished they’d been better informed about. How much this work would cost came out second.

“Aside from the cost of moving, making first-time buyers aware of the practical decisions they need to make when buying their first home will give them a better chance of being able to play the ‘property game’ long-term and benefit from being a homeowner,” says My Home Move Conveyancing CEO, Doug Crawford. “Our advice, and the advice of people that have already learnt these lessons, is to consider questions such as whether the property will increase in value, whether expensive DIY work is needed or whether your mortgage arrangement is going to work long-term.”

TV property guru Phil Spencer, who recently launched the advice site for buyers MoveIQ, agrees that as well as the ‘big’ questions, the ‘small’ things should not be overlooked. “Buying a home is always a mixture of heart and head. Your first impression as you walk through the door is crucial to your decision, but so too are many other less obvious factors,” says Spencer.

“It’s essential that you do your homework, or you risk being blinded by emotion during the purchase. Even worse, you could end up with expensive problems down the line. Asking the right questions before, during or after that first viewing can make the difference between identifying the perfect home and having an unwanted surprise after you’ve committed to buying.”

Phil Spencer home buyer questions

So what questions should you be asking? Here, Spencer, who certainly knows a thing or two about house-hunting, shares his top five…

1. How long has the property been on the market?

“This should be one of your first questions,” says Spencer. “The average time it takes to sell a home in the UK is two to three months, according to the Government. So, if the property has been on the market for considerably longer, it may have an issue that is stopping it selling, beyond just being priced too highly. But you’ll need to get your detective hat on to find out what it is.

“One red flag to look out for would be if the current owners have lived there for an unusually short period of time. There is usually a reason behind a seller trying to get shot of a property after a short period. You’ll need to push the agent or sellers for clues: Is there a nuisance neighbour, what are crime levels like in the area, how busy are the roads and how much does the property cost to run (utility bills, council tax etc)?”

2. Is the property in a conservation area?

“If you are drawn to the history and charm of older homes, bear in mind that your scope for making changes to such a property could be severely limited,” says Spencer. “Specific rules about what you can and cannot do to the property will vary from local authority to local authority. Some may prohibit you from making changes to metal railings, windows, trees and even the colour of the front door. So, if your heart is set on a house with history but you’ve got an eye on modernisation, make sure to ask about anything that might block your plans.”

Phil Spencer checklist

3. Is the property a freehold or a leasehold?

“There are pros and cons to both freehold and leasehold properties. As a leaseholder, you will have to pay annual fees to the owner of the freehold, from ground rent to maintenance charges. These can fluctuate over time, so make sure that when you’re budgeting you factor in the possibility that ground rent will increase or maintenance charges could spike if the building needs major repairs,” says Spencer.

“By contrast, if you buy a freehold property there’s no ground rent to worry about, but you will be responsible for everything, including the roof and the maintenance of the structure. It’s important to get a detailed survey that will flag up any issues that need urgent – or expensive – repair.

4. Are there any pending planning applications that might impact me?

“This is a quick bit research you could carry out before actually viewing your prospective home. Nearly all local authorities have a planning portal on their website that allows you to view any previous or pending planning applications. If, for example, you were considering buying a home close to agricultural land, it might be a good idea to check whether the friendly farmer next door has just submitted a planning application for a new pig-rearing facility!”

5. Has the seller made any changes to the property?

“If changes have been made recently – especially structural ones – you need to know so you can ask the seller for any relevant documents, receipts or guarantee certificates. Equally if the seller has spent money doing the place up, they will have raised the asking price accordingly – so you need to make a judgement on whether the premium is justified. One other question I always ask a seller which can prove revealing is, ‘If you were staying, what other improvements would you make?'”

 

Bank of England Warns of No-Deal Brexit House Price Crash

Property Hampshire Warning Bank of England
Governor of the Bank of England Dr Mark Carney leaving Downing Street, London yesterday, following a Cabinet meeting.

Was this a forecast?

The Governor of the Bank of England has warned ministers that house prices could crash by more than a third in the event of a disorderly, no-deal Brexit, according to a report by Gavin Cordon, Press Association Whitehall Editor.

Yesterday, Mark Carney briefed Theresa May and senior ministers on the Bank’s planning for a “cliff edge” break with the EU at a special Cabinet meeting on Thursday to review the Government’s no-deal preparations.

It is understood he warned house prices could fall by up to 35% over three years in a worst case scenario, as sterling plummeted and the Bank was forced to push up interest rates.

“What could be lost in the alarmist headline is that Carney wasn’t making a forecast,” says John Holden Chairman of McCarthy Holden.

We’ve been here before

“And hang on, haven’t we been here before?” Holden continues.

Back in May 2016, the then Chancellor of the Exchequer George Osborne warned that following a leave vote house prices would drop by 18%. Around the same time US President Barack Obama said Britain would go to the “back of the queue” for trade deals with the US if it votes to leave the European Union.

“So again today we read headlines which could damage confidence further in both the wider economy and the UK residential property market.” continues Holden.

Understanding the context

Fortunately, some leading economists have stepped up and put Mr Carney’s comments in a framework of context.

Take BBC’s economic editor Kamal Ahmed, who stated today that it appears that the Governor wasn’t providing the Cabinet with a forecast of what the Bank believes would happen in the event of a no-deal Brexit. He was briefing the Cabinet on what preparations the Bank was making if that does happen, including last November’s stress test.

It was not a forecast.

It was an apocalyptic test where the Bank deliberately sets the parameters beyond what might reasonably be expected to occur. The major banks all passed the test, giving reassurance that the financial system can cope with whatever happens next year.

The Governor believes that a ‘no-deal’ scenario would be bad for the economy. But not as bad as the headlines today which are based on a doomsday scenario that is not actually forecast to happen.

The market insight from John Holden is  that “On the shop floor at McCarthy Holden the first half of 2018 saw one of the poorest levels of house sale transactions for some time, however, since July positivity was in the wings because house buyers began surfacing again with intent.”

“Right now, discerning house buyers are seeing the current market conditions as an opportunity to move whilst prices remain static. The news for house sellers is that you can and will sell successfully in today’s market, but don’t expect a fancy or inflated price.”

“Large house price gains are gone for a while, but like all markets when they rebound from a low they come back with a sharp and fast uptake. Savvy buyers know this and are taking care of business now” concludes Holden.

John Holden - Chairman McCarthy Holden

Below are samples of fine homes that have SOLD (exchanged or completed) during 2018

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