Pygott & Crone Latest News: The Great Property Market Conditions

Welcome to our February Newsletter where we are bringing you the latest news in the property industry. 

This month we are sharing the accelerated increase in property prices for the fastest month on record! Elsewhere, we also explored the new landlord legislation for 2020, relating to the electrical safety checks. 

We also focus on whether anything has changed now Brexit is in full swing and how to save for a house deposit. 

Multiple gold awards won at the annual negotiator awards 

We are delighted to announce that a very successful year for us has been recognised at the annual Negotiator Awards, the property event of the year. We were shortlisted in four categories and are delighted to have achieved three gold awards.

Click here to read Multiple gold awards won at the annual negotiator awards .

Aladdin

From now until Sunday 19 January

 

Performances at the Riverhead Theatre

Click here to read Aladdin.

Toy Collectors Fair

Sunday 26 January

 

Family friendly jam packed Toy collectors fair at the Epic Centre

Click here to read Toy Collectors Fair.

 Dog Friendly Day

Saturday 8 February

 

Unlock 1,000 years of history with your furry companion at Lincoln Castle

Click here to read  Dog Friendly Day.

Property Prices Rise at Fastest Rate on Record

 

Rightmove has reported property price increases from December 19 to January 20 of 2.3%; representing the largest-ever increase in prices over a 4-week period since it began its asking price index almost two decades ago. With the property market starting the year in such good health, 2020 is poised to be a strong year all round for housing.

In the 4 weeks from 8th December to 11th January, asking prices increased by over 2%, with the general election result having a strong positive effect on the market, thanks to the certainty of a majority government.

It is not just vendors who have returned to the market, with Rightmove also recording a 15% jump in enquiries over the same period, when compared to January 2019.

Miles Shipside, Rightmove director and housing market analyst, comments: “The housing market dislikes uncertainty, and the unsettled political outlook over the last three and a half years since the EU referendum caused some potential home-movers to hesitate. There now seems to be a release of this pent-up demand, which suggests we are in store for an active spring market.”

He continues: “The early birds are on it, with over 1.3m buyer enquiries to agents since the election, up 15 per cent on the same period a year ago. Some buyers are even further ahead and have snapped up a property already.”

Electrical Safety Regulations to come into place for Landlords

 

The first new landlord legislation of 2020 has been proposed, and relates to electrical safety checks. If you are a landlord of a property, then the proposed new regulations could affect you from 1st July this year.

Subject to parliamentary approval, from summer this year landlords will have to ensure electrical installations inspections and testing are carried out for all new tenancies, and for existing tenancies the regulations will be applicable from April next year.

In a bid to improve the safety of tenants across the United Kingdom, the Electrical Safety Standards will mean that electrics in properties should be safer and more uniform, with landlords required to produce copies of inspection reports to tenants, and the housing authority if requested.

David Cox, ARLA Propertymark Chief Executive, commented on the regulations; “We are supportive of this concept and believe it will create a level playing field for all agents and landlords as well as ensuring improved safety standards for tenants. Mandating inspecting and testing of every fixed electrical installation should have a limited impact on good professional landlords and agents in the market, many of whom already voluntarily undertake these inspections. We did raise concerns about the number of engineers available to undertake these reports by the April 2021 deadline but have received assurances from MHCLG this morning about capacity in the supply chain.”

If you are concerned about how the new regulations may affect your properties, don’t hesitate to contact us and we will be happy to advise you.

Does Anything Really Change now that Brexit has Started?

 

After nearly fifty years of membership, Britain has officially left the European Union and we are now in what is known as the ‘transition period’, which is scheduled to last until the end of the year when we fully depart from the EU. Now that we have left, does anything really change?

Essentially, not much changes for the next 11 months whilst a fully fleshed-out trade deal is brokered. The United Kingdom will be less involved in EU affairs, which means no more MEPs (Members of European Parliament) and no more EU summits, but for the majority of us no change will be seen.

Something that will change, and that has been well-publicised, is the return to blue passports rather than the current burgundy version. These blue-and-gold passports were first introduced nearly a century ago, and will be phased into production throughout the year, although burgundy passports will continue to be valid.

Alongside the new passport designs will be a series of commemorative coins, the first of which is a 50p coin now in circulation bearing the inscription “Peace, prosperity and friendship with all nations”. There are also further plans for other commemorative coins to be released in circulation, so check your change to see if you have one of the three million newly released coins.

Aside from these fairly trivial items, nothing palpable will really change this year in terms of travel, healthcare or working abroad.

British nationals may still queue in the “EU Arrivals” sections in airports, and no visas or extra documentation will be required for travel to Europe. Whilst in Europe, the European Health Insurance Card (EHIC) will still be valid up until the end of the year, however from 2021 this will no longer be valid.

The exit at the end of last month from Europe was more politically significant than having any day-to-day ramifications.

Saving for a House Deposit

 

For most of us, the most expensive thing that we ever purchase will be a property, and the prospect of saving for that all-important deposit can be rather daunting. However, the key to saving for that lump sum is simply good financial preparation and making a few changes to your outgoings which should reap big rewards. Take a look through our handy hints and tips and you’ll be in that new home in no time.

Speak to an expert
If you have made the decision that you are ready to buy a property, then an excellent first point-of-call would be to speak to an expert, be that a financial planner, mortgage advisor or a savings expert in your bank. It is important to get a detailed overview of your personal finances and speaking to an industry expert will provide you with tailored advice which suits your lifestyle, as well as being given some proven strategies to help you to save. Whether you’re a saver or a spender, it is important to get in to the right mindset to save and starting the process by speaking to an expert is a sensible first step.

Make a move
With the cost of renting often leaving many with little money to save for a deposit, making a temporary move can be a key factor in achieving a sufficient deposit. More and more people are moving back in with their parents for a period of 6 to 12 months; often paying no rent and economising through saving on laundry and food costs. If living with your parents is a truly unbearable prospect, then finding a lodger to live with you will also aid you in that all-important quest for a deposit.

Know your options
Did you know that you could buy a property with just a 5% deposit? Knowing what schemes and grants are out there will most certainly help you to achieve a house deposit. The Help-to-Buy shared equity scheme allows you to purchase a home with as little as 5% deposit and the government or developer (this is available for new homes only) lends you the rest of the deposit. Shared ownership schemes involve purchasing part of a property and then renting the rest, and although you would still need a deposit to get a mortgage for the part of the property you are buying, the deposit would be considerably lower; for example, to get a 90% mortgage on a 50% share of a £150,00 property, you would need only £7,500 for the deposit.

Make your savings work harder
Naturally, any changes you make will have one similar goal – to help you in saving more money more quickly and making these savings work for you should be a top priority. Open an ISA and use your yearly cash allowance so you don’t pay unnecessary tax. If you don’t already have one, open a savings account and save what you can, even if you think the amounts you are saving are inconsequential, they will soon amount to a worthwhile value. Shop around and see which bank offers the best interest rate on your savings, don’t just take one out with your current banking provider as finding a good interest rate could go a big way to helping you reach your goal faster.

Saving for a deposit can seem like a tall order, so making some sound financial decisions will be the key in to being approved for a mortgage and taking a step on to the property market. Get yourself into the right mindset where you are aware of why you are making some financial changes, remember that they are all short-term, and you’ll see those savings growing faster than you could have ever hoped.

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