Demand still on the increase but price rise slows

The latest Halifax House Price Index has shown that the price increases seen in recent times are beginning to slow.

In the 3 months up to September prices showed an 8.6% increase compared to the same period last year and are showing and are showing a 9.9% increase in the 3 months to August.

However, prices fell a little between August and September with the average house price now standing at £202,859.

Martin Ellis, Halifax housing economist, saw no reason for pessimism though as demand is on the increase and he expects prices to carry on increasing.  He recently stated “Housing demand has been strengthening recently, underpinned by economic growth, rising real earnings and very low mortgage rates.

“Increasing demand is combining with very low growth. There is little reason to expect any fundamental shift in the key market drivers over the coming months.”


Separate research showed that detached houses and bungalows had shown the slowest growth in value over the past decade at 21% and 28% respectively while flats have shown the greatest increase at an impressive 60%.

Preparing your home for sale- Part 2

In our last blog we gave you a few hints and tips on how to make your property look ideal to viewers. Keep reading for some more great tips. 

Condition

Don’t expect others to see past the ‘foibles’ that you have lived with; the hole in the ceiling; the scuffed paint work on the door frames. Ask your friends to be honest about what they see that you no longer notice. Fix the problems, particularly the easy ones such as repainting.  Don’t mask serious problems. If the property has damp and it isn’t something you are willing to fix, get quotes for the work and leave them with your agent. Trying to disguise an issue will eventually come back to haunt you, when a survey brings it to light it will provide an opportunity to negotiate down the price.  Clean windows let in more light, as does removing any netting or blinds that you normally have up. Let viewers see your rooms with all the natural light you can get. It will always look better and the rooms will look bigger.  In the kitchen consider replacing the unit doors and handles if they are shabby but the unit carcasses are in good condition. They don’t need to be expensive, just look good.

“Show home” living

No nasty smells.

Always make sure the bin is empty. If you have pets move them outside for a viewing if possible and make sure their food & water trays are clean and washed with no litter trays in the house. You may not be able to smell anything, but non-pet owners will notice the odour.

Keep it tidy.

At some point in the sales process you will sigh and say “….but I have to live here”. True, but you’d rather be living somewhere else so it’s worth making the effort to keep the property permanently on show until you have a sale. A buyer might want to come round at short notice so always have the house ready to be viewed.

Details matter.

In the bathroom make sure the towels are neatly folded on the radiator, the shower screen is streak-free, the bath, hand basin and toilet are sparkling and a new bar of soap looks better than one which is melting away. If the bathroom is tiled, ensure both tiles and grout are clean.

Kitchen work tops

These benefit greatly from under-unit lighting - so if you have them, turn them on. Ensure all light bulbs work – especially in cupboards and under the stairs where prospective buyers might want to look. Open the windows in summer. In winter ensure the house is warm.

Potted plants or fresh flowers

These brighten up the room, but make sure their smell is not overpowering. The smell of furniture polish gives the impression the home is well cared for.

Leave a light on

This can create a relaxed atmosphere and brightens the room. Ask viewers to take off their shoes when looking around – it makes people realise that you care about your home, and gives the impression the property is well looked after. 

Outside

Cut back overgrown bushes and trees. Fill in old ponds or sand pits. These measures can add to the size of an existing garden and allow a better view. Look out of your windows front and back. What can you see? If it’s not pretty in the distance then create something nice to look at close by. Use brightly coloured plants in pots or tubs if you don’t have a garden to catch the eye.  Remove old sheds or greenhouses. Getting rid of these not only creates space, but also lets in light.  Ensure that the garden is tidy; the lawn should be free of leaves, paths swept, weeds removed, loose paving fixed and clean the garden furniture. Hanging baskets, planted tubs and window boxes make a house look cheerful and create a fresh smell. Even in winter a floral display makes a property look cared-for and desirable.  Look at the front of the property -perhaps the front door or garage door needs re-painting or a new one fitted? Make sure external paintwork, guttering and doors all look to be in good order.

This may all sound like a lot of effort but, believe me, it will pay dividends and should help to secure a buyer more quickly, thereby cutting down on the amount of viewings and giving you the chance to move on to the next one sooner!

Preparing your home for sale- Part 1

Thinking of selling?  Here are a few hints and tips.

Since modern buyers can look up how much you paid for your property you will need to convince them that you have added value through improvements, or that prices generally have gone up. Don’t imagine that simply because you have done lots of work you will automatically get it back as added value. There is a “value ceiling” set by neighbourhood average property values and no matter how much you have spent improving your property it may not exceed this ceiling.  Work which adds space such as a loft conversion will almost certainly add value, but cosmetic work such as a new bathroom may not add value although it may make your property easier to sell.  An en-suite bathroom can add 5% to the property’s value but don’t do it at the expense of a double bedroom as this will devalue your property. The number and size of bedrooms is still the preferred indicator of property size and therefore of value for most people.

Maximise the space you have on show. No matter how big or small your property is it’s the available space that sells it.

You can maximise that feeling of space by showing more of it! Think about buyers being able to see under furniture, leaving space under beds, sofas on legs. And don’t use the space to store things – buyers will see it and think there is not enough space for their own stuff.  Store excess furniture, ornaments and general ‘stuff’ out of sight, preferably in a storage warehouse. The investment will pay off; buyers will see space and will not notice the odd missing chair or side table. You can make do with what is left whilst you are selling.  Don’t use the garage to store excess. Buyers will want to see the garage and won’t be fooled if they find it’s full.  Using the loft for storage is what people expect – but make sure that it is well organised, as a buyer wants to see that it is useful space which can be easily accessed.  Floors need to be clean and tidy to increase the sense of space. If you have a carpet, get it cleaned. If the flooring is badly scuffed or marked think about changing it.  All surfaces, shelves and tops of cupboards to be kept clear. If you can’t make room for items out of sight then think about putting more into storage. No-one will notice if the toaster is missing from the worktop but they will remember there was not a lot of kitchen worktop space.

Move furniture around so that when you enter the room you see more floor space. 

There is no harm in leaving out your Gucci bag so the buyer see’s the ‘sort of person’ that lives in a house like this one. If you have a home office make sure it is spotless, no bits of paper lying about and no dust on a printer that is rarely used.

Remove as much of the clutter as you can – don’t imagine that because you are selling a family home the next buyer wants to see a rooms full of children’s toys. This includes the paintings and drawings that are on display around your home, they appeal to you but may be getting in the way of a buyer seeing how they might organise and use the space.

Depersonalise

Neutralise strong colours and decor. Orange kitchen walls may look lovely to you, but will put off more people than they attract. Magnolia might be dull, but it won’t offend anyone. The aim is to appeal to as many people as possible.  Store away quirky, personal items as they might be distracting. If you are a collector put away the collection. It is personal to you and not relevant to the buyer. Restrict the number of photos on display. A few will help to give a ‘lived’ in friendly feel, but too many will clutter up the rooms.

Stamp Duty Land Tax has changed!

As you are no doubt aware the Chancellor has made changes to the rate of Stamp Duty charged on a property purchase in his autumn statement.  The highlighted points are:

•          No Stamp Duty payable on properties up to £125,000
•          On ALL properties the first £125,000 will be free from Stamp Duty
•          Any amount over £125,000 up to £250,000 will incur a 2% charge
•          Charge of 5% incurred up to a sale price of £925,000
•          Charge of 10% incurred up to a sale price of £1.5 million
•          Then payable at 12% on any amount over this amount

Click here to see a useful calculation table which shows what you would have paid on the old system and what will be paid now.

The government claim that this will help 98% of home buyers but we will wait and see on that one!

Keep an eye on our blog for further information.

Click here for more information on the Autumn Statement

How can I find a good property deal in Andover?

I was chatting with a Landlord recently who mentioned that there are not bargains to be bought in Andover at the moment.  Whilst we do sell property we are always happy to give advice on potential good investments to Landlords, whether we have the property on the market or not.  I did a little bit of research and found that there are bargains still to be found out there.

A 4 bed detached on Salisbury Road sold in 2007 for £369,950. In June of this year it sold again for £330,000, a drop in value of 10.8%!  A 2 bed terraced house on the Roman Way estate, sold for £135,000 in June this year. It had previously been sold in 2007 for £149,000, these are excellent value properties.

The common thread here is that both of these properties had been purchased in 2007, around the time that the market began its downward slide and although prices have picked up there are still bargains out there.

Whether you are a landlord of ours or not, drop by our offices if you would like any advice...

Permanent ban on estate agency boards

Some time ago Hastings Borough Council applied to the Secretary of State to remove “deemed consent” which allows agents to display For Sale and To Let boards.  They were particularly concerned with the seafront area of this historic town as, at one time, there were over 100 boards on display, not giving a great impression of the town.  The Secretary of State allowed for this right to be removed for a period of 5 years.

However, towards the end of this period the council applied once again to have this right withdrawn permanently and the Secretary of State has allowed this, thereby keeping the seafront totally clear of all boards.

Obviously the council believe this to be for the good of Hastings but I for one am glad I am not an agent there!

'Winterise' your property to avoid unnecessary damage

Not preparing your house for the winter months can cause a lot of damage- to you home and your wallet! 

I’m sitting here writing this and the rain is lashing down – winter is definitely on its way.  Although it has been mild recently, there are a few tasks that should be undertaken now to hopefully avoid any nasty surprises further into the winter:

1.        Check guttering – now that most of the leaves are off the trees it’s a good time to check and clear gutters.  In our experience a lot of damp issues are often caused by blocked and overflowing gutters and down pipes.
2.        Check roof tiles and chimneys – you can take a look in the loft initially as this will show any possible damp spots.  If there are issues, get the roof checked for cracked and slipped tiles.  Another favourite area for letting in damp is chimneys.  Do they need capping?  Is the flashing in good order?  All these tasks can be checked by a good roofer or builder.
3.        Ensure all pipes are adequately lagged– this especially applies to external pipework, even a short run to an outside tap.
4.        Switch off the supply to outside taps and drain them down to avoid pipes freezing and bursting.

Always remember though that buildings need to breath, so ventilation is still very important to avoid a build-up of condensation.

Land Registry reports a slower market

The September report from the Land Registry showed that the rising of house prices is slowing.  The report for September, released this week, shows that the average price of a house in England and Wales is now £177,299.  This is down by 0.2% on the previous month although up by 7.2% on the same time last year.

The figures for Hampshire are slightly better with the average house price higher at £228,020 with the monthly difference standing at 0.8% and the yearly figure showing an increase of 7.7% from the same point last year.

A positive note from the report showed that repossessions were down compared to the same period last year.  In the months of April to July 2014 repossessions averaged 890 per month across the country compared to 1324 in the same period last year.  On the whole repossessions would appear to be on a downward trend.

Bargains on Burghclere Down

A landlord became ever more curious about the Burghclere Down Buy to Let market after reading our newsletters about various areas of Andover, so decided to pop in and ask our advice.

I found that a fairly typical four bedroom semi-detached townhouse with a garage on Hibiscus Crescent was bought for £187,000 in 2012. The same property sold for £225,000 in June this year, which is a rise of 20%. Prices in the town during this same time period rose by an average of 10.8%, so it should have sold for £207,200 if it had followed the towns average house price trend.

A three bedroom detached house again on Hibiscus Crescent sold for £226,950 in the summer of 2006, and was sold this summer for £249.950. This is again a decent rise of 10%, but average prices in this time have risen by a much more remarkable 26% in the area.

With rents for detached houses on the estate could achieve between £900 and 1100 per month, yields are around 5%. I think in terms of a rental investment, there are better properties, such as smaller two or three bedroom semis, or even ex local authority properties, but for owner occupation there are some bargains.

Our passion lies firmly within the residential property market, so please feel free to talk to us at any point about our diverse area.

House of multiple occupation: Good money - if you do it right....

Owning and letting an HMO (House of multiple occupation) can lead to good yields on an investment for a Landlord.  However, if you get it wrong the fines can by huge.

Two Landlords (not in the Andover area) were recently both fined £30,000 for breaches of the rules covering HMO’s in their area.  In one instant a Landlord was found guilty of 46 offences relating to 4 different properties by the Magistrates Court in Cambridge for allowing tenants to live in dangerous conditions, namely fire safety issues, dangerous electrics and poor security.  He was also charged £1250 in costs.

In a separate case another Landlord was again fined £30,000 for leaving a property with 5 tenants in it with no heating or hot water for 4 weeks during the winter, as well as a leaking toilet.  The fine was high as he was charged £15,000 for failing to licence the house as an HMO, £5,000 for failing to fix the boiler, £5,000 for failing to fix a soil pipe and a further £3,000 for failing to respond to an investigator.  On top of this he was also charged £2,160 in costs.

So the rewards for owning an HMO can be high but beware.  Always ensure you fully comply with the Management of Houses in Multiple Occupation (England) Regulations 2006 and talk to your local authority as there are regional variations to deal with as well.  If in doubt – ask your local authority or a good agent!

Buy to Let opportunity with ready made tenant

This newly listed property is a great buy to let prospect as the current owners would like to rent it from the new owner if possible!

The price of this property is £164,950 and you could expect to achieve around £800pcm giving a yield of around 5.8%.  Add to this the added benefit that the new owner will collect rent from day one!

Click here for more information 

Andover property market outperforms other towns in the area

A landlord with a small property portfolio came into our office on London Street last week. He lives in a village between Ludgershall and Andover, and has properties in both towns. He wanted to ask our opinion on where he should buy his next Buy to Let property.

Looking at Andover, the average property price can be an impressive £282,400 and the average rent is equally high at £1045 per month. In Ludgershall, an average property is £195,000 and the average rent is only £608 per month. The annual yield in Andover could be around 4.5% per year, compared to Ludgershall where he could achieve an annual yield of nearer 3.7%.

It made me consider two other towns close by, Whitchurch and Pewsey. In Whitchurch, I found property values are much higher than in Andover, with an average property price of £359,600. They have an average rent of £1372 per month, which could achieve a yield of 4.6%. The average price of a property in Pewsey is £361,150, with rents of around £815 per month. This could achieve a yield of 2.7% per year.

It goes to show our town of Andover can be a good area for an investment property as the purchase price can be reasonable, but it is a decision that shouldn't be taken lightly. These are only averages, so the yields for some small to medium sized properties in popular areas of Andover can achieve yields of 4.5% to 6.5% per year.

If you want to know our thoughts on property in Andover, pop into our office.

Is Spanish Town Andover's sleeping giant?

A landlord recently missed his chance to buy a three bed semi-detached property on Madrid Road, near the shops and Corunna Main, as it sold in a matter of days. He asked me if there something special about the area, so I did a little research.

I have included Corunna Main, Colenzo Drive, Valencia Way and Seville Crescent in my findings for the Spanish Town area. Corunna Main is the main road going through the development with smaller roads coming off of it.  The development was built in the 1960’s, mainly to encourage workers to move to Andover as the government of the time were making a conscious effort to move businesses out of London to areas such as Andover. 

A number of three bedroom semi detached houses have sold for around £200,000 in the last two years. These properties tend to generally be offered in good order so will require minimum time and effort to get ready for letting and this could achieve rents of around £900 per month, which would provide a reasonable annual yield of around 5.4%.

Well presented three bedroom semi-detached properties in the Spanish Town area which were selling for a maximum of £190,000 two years ago, are now selling for £230,000 or even £240,000. The older houses offer the tenant and buyer larger rooms, which can be more appealing.

With achievable rents of between £875 and £900 per calendar month and, as the houses have seen great increases in value and are popular with buyers and tenants, this makes them very attractive to both home owners and investors. So, if you would like to talk to us about property in our area please feel free to email or come and see us in our office.

Herons Rise Vs Berry Way

A landlord came into our office to ask whether Berry Way, Burghclere Down or Herons Rise would be a better place to invest in. He was considering purchasing a 2 bedroom mid terraced house, after reading a recent newsletter we had sent him.

The properties on Herons Rise were predominately built in the 1970's. They were built by a local builder, predominately for the first time buyer market.  This has remained the case but they have also become popular with buy to let investors. The Burghclere Down development was built in the early 2000’s. The properties here are more aesthetically attractive as is often the case with properties built after the 1970’s, and are of a similar size to those on Herons Rise. The average value of a mid terraced house on Herons Rise is £149,000 whilst on Berry Way a mid terraced house has an average value of £180,000

On Herons Rise, a two bedroomed mid terraced house can achieve rents of around £725 per month, with a three bedroomed mid terraced house achieving around £800 per month. Looking at the rents for Berry Way, a two bedroomed mid terraced house can potentially achieve £775 per month, with a three bedroomed semi-detached house achieving around £875 per month.  Both have similar yields of around 5.8% to 5.2% per year, therefore making both areas sensible propositions.

If you would like any advice when choosing properties, you may come and see us at our office on London Street.

Hello!

Hello to you all! This post marks the beginning of the Andover Property blog. I don't know about you, but we're very excited about it!

And who are we? We are Carole and Anna Bazzoni, a mother/ daughter estate and letting agent team who have both lived in Andover our whole lives. We have been working in the property industry for a combined total of 18 years now- 19 if you include Anna answering the phone and doing the filing on a Saturday. All these years have been a steep learning curve for us and this blog is to try and make everyone else's dealings with property that much easier.

We hope to post an article at least once a week about anything; from the ideal rental, to how to make your property more sale-able, and possibly even the odd post about the day to day life as an Andover lettings and estate agent.

We would love to hear your feedback and suggestion about this blog by either the comments section below, or you can email Anna direct at anna.bazzoni@martinco.com .