How Far Would You Go to Get Your Dream Home?

How Far Would You Go to Get Your Dream Home?


We had a brilliant time celebrating the best our local community had to offer at this year's South of England Agricultural Show. Find out more about what the show had to offer in this month's newsletter!

Also this month, statistics are showing that homeowner confidence is growing, investors are told that one in five homes are set to be rented by 2022, we discuss all the options available to prospective (and confused) first-time buyers, and we share some examples of buyers who were willing to go to great lengths to secure their dream home.


Homeowners are Regaining Confidence in the UK Property Market

 
While there has been plenty of uncertainty surrounding the UK economy, the property market has remained strong in the two years since Brexit.

Many homeowners and potential movers became hesitant when it came to making decisions on their home during this time, however, new data suggests that confidence in the market is on the rise.

A recent Housing Market Sentiment survey hoped to discover how confident each region in the UK is about their home and their expectations for the next six months.

The survey revealed that 84% of homeowners in Britain believe that property prices in their area will rise over the next six months. When the same survey was taken six months ago, this figure stood at 70%, which is quite the change in such a short space of time.

This is the largest increase in confidence since pre-Brexit, and on top of this, homeowners expect rises by an average of 6.9% in their area; another figure that has seen a jump, as it stood at 4.9% six months prior.

In terms of individual regions, the East Midlands was the most optimistic, with 93% of survey participants from this region believing that house prices will rise over six months. Sharing that same sentiment were homeowners in the East of England, with 90% feeling optimistic about house prices.

On the opposite end of the scale, the North East were the least upbeat regarding house prices, with only 63% feeling confident in price growth. However, this figure is an improvement, with a 22% boost in confidence since November 2017.

When looking at the rate at which survey participants expect prices to rise, the West Midlands had the highest expectations throughout the UK, predicting a 10.6% increase in property values by the end of the year. The East Midlands wasn’t too far behind, forecasting a 9.2% increase.
 
Have you been thinking about selling your home and would like to gain a better understanding of what your property is worth on the current market? You can get a free instant online valuation of your property with Mansell McTaggart from the comfort of your living room. Simply click the button below to find out how much your home is worth.
 



Another Successful Year for the South of England Agricultural Show

 
The South of England Agricultural Society held its annual South of England show in Ardingly at the beginning of June.

Those who attended the 4-day local agricultural show were treated to an array of entertainment, including; food and drink stalls, petting zoos, equine shows, extreme sports events, children’s entertainment - as well as our very own Mansell McTaggart stall!

In the run-up to the show, residents throughout the south of England were made aware of the show’s nearing approach thanks to some handily placed promotional boards - sponsored by Mansell McTaggart.

The team that attended the show had a wonderful time meeting with customers, both old and new, and we can't wait for the next show already!
 
 



One in Five Homes to be Rented by 2022

 

 

The demand for rental homes in the UK looks set to grow according to new reports.

In recent years, there have been signs of a generational change in attitude towards homeownership, with new research suggesting that there could be a considerable rise in homes available for rent in the coming years.

Due to rising house prices, which has resulted in a larger barrier to entry, many prospective buyers are under the impression that renting a property is the most suitable option for them in the long term.

Research forecasts that by 2022, just over one in five of all households within the UK will be renting. This is a 1.1% increase on the current proportion of homes that are rented.

There seems to be a clear demand for high-quality rental homes and the market appears to be responding accordingly.

Reports from last month indicate that there’s been substantial growth in the Build to Rent sector, with just over 25,000 build-to-rent homes built over the 12 months.

It was also found that it’s not just landlords and investors bringing new properties to the rental market, as inherited homes are often put up for let instead of sale. Recent figures from the Office for National Statistics showed an average of 200,000 homes are changing ownership through inheritance each year, whilst 16% of all landlords acquire their home without purchasing it.

Government schemes – such as Help to Buy – and the scrapping of stamp duty have helped many first-time buyers onto the ladder. However, many are still relying on the bank of mum and dad, suggesting that there’s still some way to go to solving the affordability issue.



First-Time Buyers: What are Your Options?

 
With the recent cut in stamp duty for first-time buyers and low-interest rates, many property experts are predicting considerable growth in the number of first-time buyers in 2018.

The housing market can be an inhospitable place for young first-time buyers. It requires a dedication to an end goal that borders on single-mindedness with many sacrifices along the way, but it is not impossible to buy a home.

To get you started on your climb up the property ladder, we’ve decided to take a look at some of your best options as a first-time buyer.

Where should you start?

Save. It’s a simple first step, but it’s the one that the majority of buyers struggle with the most. Putting a little away here and there simply won’t cut it, you need to be consistently squirrelling away money, sacrificing holidays and big money spends, in an attempt to scrape your deposit together.

Fortunately, there is help out there. Do some research and find a savings account with the best interest rate. The most popular savings account for first-time buyers at the moment is the Help to Buy Isa.

This account allows you to make monthly deposits of up to &200 until you either buy your first home or reach the &12,000 limit. Once you actually purchase a home, you can put the savings from your Help to Buy ISA towards the deposit, and after the sale is complete you will receive a 25% bonus from the government. For example, if you had &12,000 saved, you would receive a &3,000 bonus after completion.

What are your options?

If you already have some money saved up, but you're just short of the mark, it may be worth considering the following options.

Rent to Buy
Rent to Buy allows you to choose a home that you will one day buy, but in the meantime, you’ll only have to pay a reduced amount of rent (80%), meaning you can save the other 20% for a deposit. Once you enter this scheme, it lasts for five years. During that time, you can buy the property outright, or you can pay for a 25% or 75% share of the property.

0% mortgage
A 0% mortgage is similar to a 5% mortgage, in that a guarantor must put forward 10% of the deposit, whilst you put down nothing. The guarantor will receive the cash back, provided that you keep up with your mortgage repayments.

Bank of mum and dad
When all else fails, what better place to go than the good old reliable bank of mum and dad. Many of the options above require your parents to act as a guarantor anyway, so why not just go straight to the primary source?

Whilst it might seem daunting to begin saving for a property, there are many options that can help you take your first tentative steps onto the property ladder. Do some research and find out which options suit you best.



How Far Would You Go to Get Your Dream Home?

 
Buying a home can take some real time and patience. Viewings could go into double digits, and even after an offer has been accepted, it can take a couple months for all the paperwork to be organised.

It is by no means a stress-free process, but it’s all worth it when you manage to find the perfect home for you and your family. But how far would you go for your dream home?

New research from the National Association of Estate Agents (NAEA) has investigated some of the most outlandish ways in which buyers have secured a deal, showing just how determined people can be to get their ideal property.

The most mundane story of the bunch was a buyer who was so impatient, she made an offer immediately after viewing the property’s description and walkthrough video on an agent’s website.

Another buyer tried to tempt the vendor into a sale by inviting them to an expensive restaurant – a plan which actually worked – whilst another impatient buyer decided to show up on the seller’s doorstep with the full deposit in cash.

Luxury incentives seem to work quite well as one buyer sealed the deal by financing a weekend away in a country manor hotel and spa for the vendor to enjoy.

One buyer used the negotiating technique of offering to landscape and maintain the vendor's new garden for two years, if they accepted his offer.

It seems that some prospective buyers aren’t shy about offering cash incentives to get a deal across the line, with reports of one buyer making a bid &32,000 higher than the asking price. Another home was taken off the market after the vendors changed their mind on moving, but a buyer quickly offered &50,000 over the asking to get them to reconsider.

One home was sold after an offer was made for both the house and the owners’ Porsche. Whilst in a separate scenario, a buyer was so eager to move into a home that they paid the current owners’ rent for a year while they searched for a new house to buy.

Finally, and possibly the most extravagant story pulled from this research, was the story of one buyer who tried to buy a house by showing up to the vendor's home with the full asking price in cash in a shopping trolley.

Chief Executive Officer of the NAEA – Mark Hayward – spoke on the findings of their research, he said “We hear many bizarre stories about buyers trying to woo sellers in a desperate bid to secure the deal, but this is something that can be easily avoided. It’s important to build a relationship with your agent to help ensure you’re getting the best possible advice about your purchase.

“Experienced agents will anticipate any issues that could arise and prevent potential buyers from having to go to these extremes to secure an offer on their dream home.”