Latest Property News | Warwick Estate Agents

Details: Published: 04 October 2024; Hits: 515

Landlords considering quitting the sector will be buoyed by Zoopla’s statement today that current mortgage rates – the lowest for 15 months – are supporting a rebound in sales activity across the UK.

Sales agreed and buyer demand are both up by more than a quarter over the last four weeks compared to the same period a year ago as households that have held off making moving decisions over the last two years return to the market. The number of sales agreed is 25% higher than a year ago.

Sales are up by over 10% across all areas and are up to 30% higher across the East Midlands and North-East.

The number of homes for sale continues to grow as greater confidence amongst sellers sees more homes listed for sale – this includes homeowners looking to move as mortgage rates fall but also investors and second home owners selling in response to recent and possible tax changes.

A third (32%) of homes for sale on the site are currently ‘chain free’ as investors and second home owners look to sell homes amidst recent tax changes and speculation around further tax changes in the upcoming October Budget. The most common ‘chain free’ homes are 2 bed houses with 41% currently listed as chain free on Zoopla. Previously rented homes account for 13% of homes for sale on Zoopla.

Many English councils are expected to double council tax for second homes in 2025. Coastal and rural postal areas popular with second home owners, such as Truro (47%), Torquay (44%), Exeter (41%), Lincoln (41%) and Bournemouth (40%), have all seen available supply increase by over 40%, as a result of these incoming tax changes. However, annual house price growth is still negative in these areas with rising supply keeping house prices in check.

Affordability continues to be a constraint on house price growth, especially in southern England. London prices have registered the biggest turnaround over the last year moving from annual price falls of 1.7% a year ago to modest price gains of 0.5% today.

Whilst house prices are lower than a year ago in the South West, South East and Eastern regions of England, in the rest of Great Britain, house price growth is higher than a year ago with prices up to 2.5% higher. Home values in Northern Ireland are 5.5% higher, having under-performed the rest of the market in recent years.

The portal says greater choice for home buyers is expected to keep house price growth in check in the months ahead. Most new listings are home-owners looking to sell and buy another home. However, not all homes are ‘brand’ new to the market. A fifth of homes currently for sale were previously on the market at some stage in the last two years.

While market conditions are improving, setting the right price is important to attract buyers. The same applies to the fifth of homes for sale that have been on the market for more than six months, still unsold. This explains why a similar proportion have had their asking price cut by up to 5% to attract buyers who remain price sensitive in the face of greater choice.

Over a third of sales (37%) are being agreed at more than 5% below the initial asking price, highlighting further how buyers continue to be competitive with offers. This proportion has improved from a year ago but remains at a level that suggests low single digit house price growth ahead.

“Lower mortgage rates are delivering a much needed confidence boost to homeowners, many of whom have sat on the sidelines over the last two years. Market activity is up across the board and expectations of lower borrowing costs will continue to bring buyers and sellers into the market” says Zoopla executive director Richard Donnell.

“Speculation over possible tax changes in the Budget and the impact of previous tax changes are continuing to add to the growth in the number of homes for sale. We remain in a buyers market and greater choice of homes for sale will keep house price inflation in check into 2025.“

Details: Published: 04 October 2024; Hits: 614

Bank of England governor Andrew Bailey says his monetary policy committee could be a “bit more aggressive” in cutting interest rates later this year.

In an interview in The Guardian Bailey says that the UK economy has proved more resilient than he feared two years ago, or even a year ago.

He is quoted as saying: “I think the economy has come through the shocks of the last five years better than many of us feared. So there’s a base there to develop. The government is right to focus on how to encourage capital investment. There is a clear need for it in terms of infrastructure.

“We’ve got at least three very big structural issues out there. One is the ageing population, which obviously we’re not alone in that one. Two is the demands for increase in defence spending. And the third one is dealing with climate change.”

Inflation as measured by the Consumer Prices Index currently stands at 2.2% – just above its official 2% target – but Bailey told the newspaper that he was encouraged by the fact that cost of living pressures had not been as persistent as the Bank thought they might be.

He said if the news on inflation continued to be good there was a chance of the Bank becoming more “a bit more activist” in its approach to cutting interest rates at its upcoming meetings in November and December.

One issue which may affect timings of future rate cuts was the growing tension and conflict in the Middle East. The possibility of a major lift in oil prices – not seen so far in the period since he Hamas attack on Israel last October – remained a threat to financial stability, warned Bailey.

He also hit back at claims by the former prime minister Liz Truss that the Bank of England was part of a so-called “deep state” that had set out to thwart her plans. Truss’s problems were of her own making, the governor said.

Bailey’s suggestion of a more aggressive approach towards rate cuts appears to have been welcomed by the markets, with Swap rates falling.

Mark Harris, chief executive of mortgage broker SPF Private Clients, says: “A number of lenders are already in the process of repricing – Coventry’s two and five-year fixes which top the best buy tables at 3.89 and 3.69 per cent respectively are being pulled tonight, while HSBC is repricing downwards today and NatWest and Barclays are repricing tomorrow.

“Santander is also repricing tomorrow and is likely to top the ‘best buys’ with its new deals – a two-year purchase option at 3.84 per cent for those borrowing 60 per cent loan-to-value and a five-year fix at 3.68 per cent, also at 60 per cent LTV.

“This ongoing rate war among lenders is great news for borrowers as there are some really compelling deals being launched, which will go some way to helping affordability.”

Details: Published: 25 September 2024; Hits: 775

A property expert says landlords must use lettings agents to avoid becoming victims of the growing threat of fraud.

Jonathan Rolande’s advice comes as new analysis by the London-based firm, Benham and Reeves, has highlighted the increasing problems facing letting agents with forged identification, digitally-manipulated supporting documents, and undeclared CCJs and IVAs.

The issue is said to be particularly acute in London, where agents have been increasingly reliant on digital screening methods to lighten their workloads.

Rogue tenants have kept pace with the rapid evolution in AI and digital technology, which can quickly process vast amounts of data, and have been increasingly inventive in methods they use to game the system.

Last month alone, the firm said it detected eight forged passports or IDs, 40 altered bank statements and other supporting documents, 50 fake employment references, and 30 undeclared county court judgments and IVAs.

There are reports that personal information available on LinkedIn are being used by scammers to dupe HR departments into providing salary and employment references.

Fake IDs and references often used by fraudsters to gain access to a property who then re-rent it to people who would not otherwise be able to get a flat or house.

Another common scam is called “cuckooing” where accommodation is rented out legitimately and is then promptly taken over by criminals and turned into a cannabis farm.

A growing type of fraud is overloading flats with undocumented workers, which can result in landlords and agents being prosecuted for breaching regulations, particularly those relating to multiple occupancy.

Rolande, founder and director of House Buy Fast, says: “When we think of fraud in the property sector, we usually think of hard-pressed tenants falling victim to scams where deposits are put down on non-existent homes or impersonation fraud, where fraudsters sell a house from under the owner’s feet.

“In the fast-paced world of lettings, landlords and their agents must be on the lookout for tenant fraud, where documents are faked to show different names, income and previous renting history.

“If a tenant using fake information manages to rent a property, there are a number of issues to worry about.

“Firstly, anyone prepared to commit fraud to rent a home is unlikely to be a model tenant. Some reasonable people may feel forced to fake documents due to stringent income multiples and the housing crisis but most will have less ‘understandable’ reasons.

“Criminals looking for properties to run illegal activities will use fake documents. Growing cannabis or subletting and turning the property into an illegal HMO are very profitable options for fraudsters.”

Rolande says that unless a landlord has substantial experience they should use a reputable letting agent to find a tenant, adding that “saving a fee may end up costing considerably more in the long run.”

Details: Published: 20 September 2024; Hits: 1046

A new analysis shows that one in five rental properties across Britain costs as much per month as a typical income pays.

Benham and Reeves analysed current rental market stock looking at asking rents and how these compare to the earnings of the average person – £35,481 per year or £2,957 per month.

The analysis found that 22% of properties are currently listed with a monthly asking rent at, or above, average monthly earnings of £2,957.

Almost half (47%) of London rental properties commanded an asking rent in excess, whilst the East Midlands saw just 2.5%.

Super-prime rents – where average monthly asking rent is at, or above, the £35,000 average annual income – accounts for just 0.3% of all current rental listings.

These super prime lets are almost exclusively located in London, accounting for 96%, with a handful across the South East, North West and South West.

Director of Benham and Reeves, Marc von Grundherr, comments: “Rents have soared in recent times and our research demonstrates just how tough it is for the average person, with one in five rental properties commanding asking rents that require an entire month’s income or more.

“Unfortunately, there’s no end in sight when it comes to the rental crisis and this is largely due to the fact that we simply don’t have an adequate level of stock to meet demand – an issue our new Labour government seems set on exacerbating.

“As a result, we’re seeing properties let at pace, often before they’ve even reached the market, with numerous tenants all fighting it out for a single property, which, of course, drives prices ever higher.

“If we don’t incentivise landlords to invest into the buy-to-let sector in order to address the imbalance of supply and demand then who knows, we might all be looking at a monthly rent of thirty odd thousand pounds a month before too long.”