Good news for the sales market in March

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.

 

 

 

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.

 

 

 

 

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.

 

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

 

 
*Moneyfacts

How much could you save by re-mortgaging?

 

Homeowners whose fixed rate mortgage deal has ended could save hundreds by just re-mortgaging!

When a fixed mortgage deal ends, you are usually automatically put onto the lender's Standard Variable Rate (SVR), which can cost borrowers more each month in repayments than if they actually re-mortgaged onto a new fixed rate deal.

Here are some examples to show you the savings when switched:-

How much could you save re-mortgaging with 40% equity in your home?

If a homeowner owned 40% equity in their home, they would look for a mortgage deal at 60% Loan to Value (LTV).

• The average SVR currently stands at 4.41%*
• The average two year fixed rate at 60% LTV is 1.67%*
• The average five year fixed rate at 60% LTV is 1.90%*

With a property valued at £250,000, mortgage borrowers looking to re-mortgage at a 60% LTV would be looking to borrow £150,000.

Using a mortgage repayment calculator, you can calculate that if this borrower was on the average SVR on a mortgage term of 20 years, they would be paying £941.70 per month.

 

If they re-mortgaged onto a two year fixed rate deal at the average rate of 1.67%, this borrower would pay £735.61 per month in repayment, a reduction of £206.09 per month.

 

If this borrower were to re-mortgage on a five year fixed deal at the average rate of 1.90%, they would pay £751.74 each month in repayment, a reduction of £189.96 per month.

How much you could save re-mortgaging with 25% equity in your home?

Those homeowners who own 25% equity in their home would look for a mortgage deal at 75% LTV.

• With a two year fixed rate average at 75% LTV, which is currently at 2.29%
• With a five year fixed rate average at 75% LTV, which is currently at 2.49%

If your property is valued at £250,000, a homeowner would look to re-mortgage at a 75% LTV, borrowing £187,500.

 

On the average SVR of 4.41% and a mortgage term of 20 years, repayments on the average SVR would be £1,177.13 per month.

 

Re-mortgaging onto a two year fixed deal at 75% LTV at the average rate detailed above, repayments would be £974.50 per month.

 

If the homeowner re-mortgaged onto a five year fixed deal at 75% LTV at the average rate detailed above, it would make their monthly repayments of £992.65, a reduction of £184.48 each month.

How much could you save?

There are many deals available offering rates below the average, which means for some borrowers, bigger savings could be made.

 

If you speak to a mortgage broker, they’ll be able to give you the best options for your circumstances.

Contact us today for more information or help finding the right mortgage deal for you.

 

 

 

*Moneyfacts.co.uk

 

RISHI RUBBER STAMPS HOMES DUTY HOLIDAY EXTENSION

We firmly believe the news from this week’s budget is great for homebuyers in West Sussex who may have been concerned that their transactions would not complete in time to take advantage of the savings.

Click here to read RISHI RUBBER STAMPS HOMES DUTY HOLIDAY EXTENSION.

BORIS’S 95% MORTGAGE ANNOUNCEMENT A GOOD MOVE FOR FIRST TIME BUYERS IN WEST SUSSEX?

We were catching up with the digital Conservative Party conference and Boris has declared that he wants to relax stringent rules on deposits and mortgages for first-time buyers.

Click here to read BORIS’S 95% MORTGAGE ANNOUNCEMENT A GOOD MOVE FOR FIRST TIME BUYERS IN WEST SUSSEX?.

DO I NEED A HOMEBUYER SURVEY ON MY WEST SUSSEX PROPERTY

When you buy anything, whether it is a new home, a new car or a new item of clothing, of course you want to know you are getting the best deal, and so can be confident in your purchase. Sometimes, it is even worth paying a little more to be sure your investment is right!

Click here to read DO I NEED A HOMEBUYER SURVEY ON MY WEST SUSSEX PROPERTY.