Ten Vital Questions to Ask on a Viewing, 4 out of 5 Homeowners are Confident that House Prices Will Rise, Plus More

Welcome to Pygott & Crone's December newsletter.

In this edition, statistics show that the number of new homes constructed in 2017 reached a ten year high and we reveal ten vital questions you should ask when attending a viewing.

Also this month, we reveal how long it takes to sell a home and a recent sentiment survey has revealed how confident UK homeowners are in the housing market.

Highest Number Of New Homes Built In 10 Years

 

New reports from the Department of Communities and Local Government (DCLG) have revealed a considerable rise in new homes created in 2016/2017.

According to official statistics, over 200,00 new homes were added to the housing stock in England last year, a figure revealed shortly after Prime Minister Theresa May committed to making the housing shortage a priority and pledging to provide tens of thousands more homes in the coming years.

The Prime Minister stated that “ I have made it my mission to build the homes the country needs and take personal charge of the Government’s response.

“Today I am seeing the work now underway to put this right and in coming weeks and months my Government will be going further to ensure that we build more homes, more quickly.”

The statistics showed an overall amount of 217,350 new homes throughout the country. The majority of these homes were new builds, totalling at 183,570, and the second most common type of new home were the 37,190 commercial buildings that were converted to residential properties. England also saw 5,680 conversions between houses and flats, but the overall number of new homes was reduced slightly as 10,000 homes needed to be demolished.

The number of new homes built over the last year is up 27,700 (15%) when compared to the previous and is the highest number of new homes built since before the 2008 financial crisis, which saw 223,530 new homes.

While this is a step in the right direction and eases the pressure of rising demand for housing, some property experts believe that the country needs 250,000 new homes per year to tackle the current shortage of homes.

This sentiment is shared by Communities Secretary, Sajiid Javid, who believes we need to aim higher: “Steps have been made in the right direction but I want to see a giant leap and hundreds of thousands more homes. We owe it to our future generations to fix this broken housing market and help them find a home of their own.”

Javid went on to say that “Whilst some councils are recognising their responsibilities and stepping up to meet the housing challenge, too many are still not acting. That’s why I’m stepping in now to make sure they act”.

10 Vital Questions to Ask When Viewing a Property

 

The process of buying a home is the most important decision you will ever make, so when you do finally decide to put an offer on a house, you need to be certain that it’s on the right house. How can you be sure you’ve found the right property? By taking your time when viewing a home and asking the right questions. You’d be surprised at some of the questions people forget to ask and end up regretting it months down the line when they discover something about the home that they don’t like.

To make sure that you find the property most suitable for you, we’ve compiled a list of 10 questions that are definitely worth asking when viewing a property.

How long has the property been on the market?
A great place to start as it can give you a good insight into the property immediately. If a property has been up for sale for nearly a year, you might want to think about why no one has picked it up so far. A house that has been on the market for a long time isn’t always a sign of something sinister, but knowing how long it has been on the market does give you a little more perspective and is a good starting point to any viewing.

How much interest has there been?
This is a good follow-up question to the previous. Especially if you think you’ve found your dream home. If there have been a lot of viewings or even a couple of offers then you know straight away that you need to act quickly.

How long have the current owners been here?
When viewing a property, most people are thinking long-term and looking for a home they can see themselves in for years to come, so it’s worth finding out if the previous owners did just that. If there have been multiple owners in and out of the property over the last 5 years, then you need to think, why?

Have there been any recent repairs or renovations?
What you have to keep in mind when viewing a property is that you’re most likely viewing it in its cleanest and brightest state. The current owners are trying to sell this home and to do that they’ll do their best to wow you at every opportunity. Try not to simply glance at the rooms and move on, ask questions about the state of the home, have there been any repairs recently? Will the home need any repairs in the future?

What’s included in the sale?
While you wouldn’t expect the seller to leave behind their 60 inch HD TV, some of the items in the home may be left behind. This mainly applies to the kitchen area and items such as cookers, washers, dryers. It’s best to ask what’s included in the home so you know what extra purchases you’ll need to make if you end up buying the home.

Can we test the plumbing and electrics?
Sellers may not make you aware of any electrical or plumbing issues so it would be best to check everything is in working order. Check the water pressure and try turning all of the lights on and off. This doesn’t mean that you should consider any faults with electrics and plumbing as deal breakers, but you need to know exactly what needs fixing.

What’s the neighbourhood like?
You can take a walk around the area yourself and get a feel for things, but a good agent should know the area pretty well and be able to give you more information. Ask about the local schools, shops and if there have been any major changes in the area recently. After all, you’re not just investing in the home, you’re also investing in the neighbourhood itself.

What transportation links do we have easy access to?
If you or members of your family need to use public transport, find out about the transport links. How far away are the train stations and bus stops? How frequently do they run in this area? If you’re going to be using public transport daily, you need to know if the commute from your new home is suitable.

How is traffic during rush hour?
For those of you that get around the city in a car, finding out how easy it would be to get from point A to point B during peak times could be quite important. If you need to drop the kids off at school and try and get to work before 9:00 am, it’s best to find out how much of a challenge that will be on a daily basis.

Can we book another viewing?
If you make it through the viewing and still feel positive, ask if you can come back again at a different time of day to see if you feel the same. Try visiting when it’s less bright when the property looks less like a show home or when the area is less quiet during rush hour and find out whether noise could be an issue.

How Long Does It Take To Sell A Home?

 

 

As any homeowner who has sold a home will know, the waiting is the hardest part, especially when the seller has unrealistic expectations of how quickly their property will go from for sale to sold.

Post Office Money and the Centre for Economic and Business Research carried out research looking into the average time it takes to sell a home in 22 of the major cities throughout the UK. On average, it was found that on average it takes 82 days to sell a property.

The findings of this research showed that Edinburgh is the fastest place to sell a home, with most properties only being on the market for an average of 41 days. Similar results were found elsewhere in Scotland as Glasgow was the 2nd fastest city to sell a home at an average selling time of 50 days and in 3rd place was the city of Bristol showing a 61-day average before agreeing on an offer.

It has been suggested that properties within these cities move so quickly due to their price range and are more suited to first-time buyers that are willing to be more flexible on the location of their first home.

The research found that Belfast was the slowest of the major cities to sell a home and average selling times were around 119 days.

Liverpool and London also featured at the lower end of the table, averaging at 112 and 111 days respectively, as it seems the more densely populated areas of the UK present more competition amongst other homes on the market.

The market has seen a bit of a slowdown in activity in recent months due to the questions surrounding the UK economy as Brexit negotiations continue and property prices are still rising, showing a 5% increase throughout the UK over the last year. Both of these factors could be linked to some of the slower cities, more populated by second steppers possibly taking a more patient approach to the market.

Managing Director at Post Office Money, Owen Woodley offered his comments on the results. “Against a backdrop of muted but steady increases in house prices across the country and sustained demand from the FTB market, these movements in time to sell reflect the changes in the number of properties listed for sale in cities across the UK. We know from previous research that first-time buyers are taking a flexible approach to finding an affordable home, most especially towards location.”

 

 

4 out of 5 Homeowners are Confident House Prices Will Rise

 

 

The majority of UK homeowners are confident that property prices will rise over the next six months, a recent survey found.

Zoopla’s latest ‘Housing market sentiment survey’ has found that homeowners in the East Midlands and Scotland were especially confident that house prices will rise by April 2018, with over 80% of respondents from area saying so.

However, the country’s collective optimism has experienced a slight drop when compared to the last sentiment survey in April 2017, which found that 87% of British homeowners believed that house prices would continue to grow.

After the East Midlands and Scotland, the south west of England was the third most optimistic region, with three-quarters of homeowners expecting to see an increase in property values.

London, the north east and Yorkshire and the Humber are the three least confident regions, with 62%, 65% and 67% of respondents respectively, anticipating a rise in values.

It may come as a bit of a surprise that London homeowners are pessimistic about the future of the property market when house prices in the capital have consistently been on the rise over the last decade.

Whilst some areas of the country are experiencing some Brexit related doubt, the majority of homeowners in each region and the country as a whole are confident that the UK housing market will continue to see prices rise.

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