Learn the latest property news

10% price surge for detached homes due to house hunters demanding more space

 

Since the property market reopened last summer, we've seen a market boom that's led to record activity for new listings and sales agreed in the UK, as homeowners rush to find somewhere more suited to their lockdown needs and lifestyle.

 

The average price of a detached home was £486,595 in December 2020, which when compared to the previous year is a massive increase of £43,364.

 

This increase in value seems to be directly related to the fact that house hunters are seeking properties with more space since the emergence of the pandemic, as well as the start of the working from home new norm.

The second highest increase year-on-year were for semi-detached properties, which increased 6.26% to £287,313.

Russell Galley, Managing Director at Halifax, said: “as many continue to work from home, this has led to a significant increase in demand for bigger properties, which has likely driven the boost in price we’ve seen in detached homes versus other property types.

“Over the past six months, the average UK house price has risen by 6.3%, making it the market’s best half-year performance since early 2007.”

In the last two decades, the price of a detached home in the UK has trebled. In 2000, a typical detached property could be bought for an average of £164,820.

 

However, it’s the last five years which have seen the sharpest price increase.

 

In 2015, the jump from a semi-detached to detached home would be just under £150k, with the gap widening to just under £200k in 2020.

How much could your property have increased in value by? If you've not yet obtained an updated market appraisal for your home, you could be unaware of its value in light of current market conditions.

 

To get started with your next sale or purchase, visit our website today or talk to us directly to book your valuation.

 

 

How you can get negotiation-ready

 

According to a recent source, 30% of surveyed homeowners stated that they didn’t attempt to negotiate on the price when purchasing a home.

 

22% of these respondents indicated that this was due to a lack of knowledge, confidence and skills in house price negotiation tactics.

 

Therefore, it goes without saying that many risk over-paying on their house purchases.

 

This can be particularly prevalent in certain age groups, such as adults between the age of 25 and 34, who reportedly suffer the most unease when trying to bargain on the price of their home, whereas those aged 65 and over report feeling more familiar with the process.

 

So, what does it take to get a better deal?

 

Best tips for negotiating house prices

1) Do your research

Make sure you research house prices in the area you are considering. These will give you a better indication of what you should be paying and what is considered too steep.

 

Looking at online portals such as Rightmove or Zoopla will provide quick access to an array of properties in your desired area.

 

If you find that other house prices are lower, there may be room for negotiation, depending on the condition of the property in question.

 

2) Ask questions

Don’t be afraid to ask your estate agent questions about the property, such as:

- How long has the property been on the market?
- Why is the vendor selling?
- Has the vendor secured their next home?

 

3) Be sure you can definitely advance with the purchase

Have you got a buyer for your current property and can you afford the mortgage payments on the property you are interested in?

 

Being in a strong position financially will go a long way to making you a desirable buyer.

 

4) Determine the maximum price you are prepared to pay

 

It's a good idea to have a clear idea of your limits, so that you can control the conversation and keep calm when it comes to it.

 

5) Be realistic

It is possible to offer up to 10% lower than the asking price.

 

However, be careful not to insult sellers, particularly by pointing out flaws in the house or offering too low, as this could lose you the property if there are other interested parties.

 

6) Get the estate agent on your side

It is in the estate agent's interest to help their client receive genuine offers, so showing them that you are ready and serious about buying will be fed back to the current homeowner.

 

The buying and selling process often hinges on a certain level of trust, as both parties seek assurance about the other's commitment and readiness to move forwards.

 

No one wants to waste time on a sale that could fall through, so whilst it's key to be level headed, don't let that affect your actual interest.

 

7) Be open to re-negotiating

Although it is better to be sure before making a commitment, you can re-negotiate until the exchange of contracts.

   

8) Don’t get carried away

The negotiation is not the most crucial part of buying a home.

 

Most importantly, this is your life and your future home.

 

Do you need help buying or selling in 2021? Talk to our agents today for a comprehensive valuation or to browse the latest listings in your area.

 

Good news for first-time buyers as lenders allow smaller deposits

 

Over the last 12 months, first-time buyers have found it more difficult to move forwards with their purchase plans, as low-deposit mortgages became increasingly scarce.

 

Now that lenders have begun to re-introduce their 10% deposits, the current situation is looking up for new homeowners, as the number of available products at 90% loan-to-value ratio rose by 29% in the first two weeks of February.*

 

It is estimated that around £5 billion is currently being held up in the first-time buyer’s market due to the COVID-19 pandemic, as many future homeowners have decided to delay their move until they have greater financial stability and job security.

 

Are you looking to try again with your first property purchase?

Nine in ten 90% mortgages were withdrawn from the market in the wake of the COVID-19 outbreak last spring. 

 

Nearly a year on, first-time buyers have been handed a serious boost, with the majority of lenders now offering low-deposit mortgage deals and reducing the restrictions they put in place on how much of the deposit could be 'gifted' by friends or family members.

Are 95% mortgages likely to come back?

It is likely to be some time before we begin to see the full range of 95% mortgages re-appear back on to the market.

 

To learn more about your prospects as a first-time buyer, please visit our website.

 
*Moneyfacts

750,000 buyers have seen stamp duty savings so far

 

It's been estimated that 600,000 homebuyers agreeing a sale from May 2020 onwards will not pay any stamp duty at all and are set to be saving £5 billion in total – that is an average of £4,660 each, according to Zoopla.

 

Last month, many questioned whether the further 140,500 waiting to complete would be able to do so in time for the March 31st deadline, but in light of the government's March Budget announcement, those concerns are no longer necessary.

 

Not only have the government extended the stamp duty holiday for another three months – taking us to June 30th – but the scheme will also have a staggered ending, with properties worth £250,000 or under eligible for savings of up to £2,500 until 30th September this year.

 

Along with an extended furlough scheme and the re-introduction of government-guaranteed 95% mortgage loans, these initiatives will protect the property market and mean that homeowners, first-time buyers and investors are shielded from a sudden withdrawal of support.

 

Who does this affect?

With the stamp duty only paid on completion, it has not only benefitted those already in the process of buying when this announcement was made but also acted as an incentive for other buyers to move before the original 31st March deadline.

 

This demand and more homes on the market has boosted overall activity levels in the property sector.

 

So, given the extension, it's predicted that we'll see a strong spring and summer for property sales, having already demonstrated above average seasonal averages for the previous winter.

 

 

What can I do to speed up my property transaction?

If you’re in the process of buying a home, there are a number of steps you can take to help make the conveyancing process go as smoothly as possible.

1. Make sure you have all the relevant paperwork to hand.

2. Respond to any additional information as quickly as possible.

3. If you need to sign any documents and return them to your solicitor, deliver them by hand.

4. Communicate regularly with your solicitor and estate agent to keep everything on track. Maybe agree to have weekly updates from everyone involved.

5. Prepare to be flexible. 

 

Research Director from Zoopla – Richard Donnell – commented last month that “demand for housing started 2021 as strongly as last year", going on to say that at the time, there was "limited evidence of new buyers being put off by the proposed ending" of the stamp holiday on the 31st March.

Contact us today for more information or to get started with your next sale or property purchase.