Category: Chamberlains Updates

In this three-minute read, we look at the key themes that emerged in the UK property market in 2020.

2020 is the year things went nuts in the property sector, with activity in South Devon and the rest of the country screeching to an abrupt halt for several weeks, before blasting back into action as buyers emerged from lockdown with a new set of priorities.

 Here are four talking points from the year.

1. Race for space

Lockdown 1 served as a turning point for many people who, after spending months cooped up with their nearest and dearest, decided that it was time to get out of town. Demand for homes in places like Central London dropped and interest in country and coastal properties spiked.

Many of those heading for the hills and beaches were families looking to upscale to a home with a bigger garden, more bedrooms, and easy access to the great outdoors.

The super-rich got in on the act too, with rural estates valued at £15m plus getting snapped up.

2. Working from home/end of the commute

2020 is the year working from home (or WFH if you like acronyms) went mainstream. Covid-19 meant that bosses who suspected staff would bunk off if they weren’t in the office had to embrace WFH. What did they discover?

Many were surprised to find that productivity didn’t nose-dive; in fact, some workers got more done. Meanwhile, employees gleefully ditched the commute and spent more time doing the things they love at home.

As a result, enquiries from people looking for properties with dedicated office space or bedrooms that could serve as a home office increased.

3. Outdoor space

Even buyers who didn’t want to hotfoot it to the countryside, wanted outdoor space, be it a courtyard, a roof terrace or access to a communal garden.

In May, Rightmove reported searches for homes with gardens increased by 42% – a trend that has stayed strong.

4. Resilience

When the market shut down in March, many predicted the consequences would be dire. It certainly was challenging for the industry, but the market has proved to be incredibly resilient.

At the start of December, property prices in the UK were growing at their fastest rate since 2016. The average cost of a UK home rose by 6.5% this year (figures: Nationwide).

What’s in store for 2021?

As the Covid-19 vaccine rollout gathers pace, things might return to ‘normal’ in some ways, but it’s unlikely that they will go back to what they once were.

That doesn’t necessarily mean the end of office-working, but a less rigid approach to the way we work seems here to stay.

As a result, many property experts predict demand in prime outer London and regional markets will continue in 2021.

Here at Chamberlains we’re proud to have made it through 2020. We’re a little bit older, wiser, and looking forward to serving the people of South Devon in 2021.

In this three-minute read, we outline the costs and expenses landlords encounter when letting a property.

To succeed as a landlord, you need to have a realistic idea about the costs you’ll encounter when letting out a property.

Many people think that being a landlord is child’s play; they assume that once the tenant has the keys, the only thing left to do is collect the rent each month.

But the truth is, letting a property comes with an array of grown-up financial and legal responsibilities. If you’re not on top of your obligations, you could lose money or wind up in court (or both).

Here’s a list of all the costs that are part and parcel of being a landlord in South Devon.

Mortgage repayments

Mortgage repayments are the most significant monthly outgoing for most landlords. If you’re looking for certainty about the size of your monthly repayments, opt for a fixed-term rate.

Insurance costs

Landlord insurance is a condition of most buy-to-let mortgages. You can opt for a general policy (this should cover property liability, buildings insurance, contents, and loss of rent) or one that is more far-reaching (but will have higher premiums).

Maintenance and repairs

All properties require general maintenance from time to time. Landlords must ensure the property is safe (that means keeping up to date with things like gas and electricity safety checks) and in good condition. Set aside funds to cover this and any repairs that may crop up (property experts suggest between 5% and 10% of annual rent).

Service charges and other fees

If your property is in an apartment block, you may need to pay a service charge or ground rent. Leasehold property owners may also have to contribute to the cost of work carried out in communal areas.

Covering vacant periods

Even the most optimistic and diligent landlord should be prepared for a property to be empty for a short period between tenancies. It’s also possible that a tenant could fall behind on the rent. Set aside at least six weeks’ rent to cover yourself.

Tax

The rules around what you can and can’t claim as a landlord have tightened in recent years. To ensure you pay what you should, and claim that to which you’re entitled, do your research and keep all relevant receipts and paperwork.

Finding a tenant and credit checks

Some DIY landlords do these things themselves, but most good landlords leave it to the pros and use an experienced letting agent. The DIY route will save you a few quid upfront – but it could cost you much more in the long run (think of the legal bills if it all goes wrong). A good letting agent will have years of experience at sourcing good tenants, checking references, and spotting trouble in advance.

Property management fees

A letting agent will handle the big and little stuff for you: the paperwork, the people management, the legal checks, the inspections, and disputes. As a landlord, you could do this for yourself. It will save you some money but cost you in terms of time and energy.

Here at Chamberlains, we can take the stress out of managing a rental property, so you can sleep easy at night. Get in touch if you have any questions, we’re here to answer your queries.

Thinking about Moving? Here’s what’s on the Horizon in the Teignbridge Housing Market

In this three-minute read, we look at the long-term forecasts for the housing market and what they mean if you’re thinking about moving in Teignbridge.

After one of the most unusual years on record for the housing industry, the latest market predictions from a major property chain make for interesting reading.

Think back to March, when the housing industry screeched to a halt for more than seven weeks during what is typically a busy time of year for property sales.

Then jump ahead to May and June when the UK’s market re-opened – and demand rocketed. A month later, the Stamp Duty holiday was announced, leading to feverish activity from June to August.

After so much fluctuation, it’s understandable that people mulling over whether to sell up or stay put might ask: ‘what’s next?’

Looking Ahead

According to a report from Hamptons International, the outlook over the next four years is for steady growth.

It forecasts house prices in the UK to rise by 2% this year and by 8% over the next four years.

HMRC is also forecasting improvement, predicting a steady rise in completions, year on year over the next four years, in line with economic recovery.

Market Confidence

Many industry insiders have been surprised by the resilience the market has shown in 2020 (let’s face it, it’s been one helluva year). Looking ahead, Hamptons notes that growth is expected to rebound to 8.7% in 2021 (assuming there is an EU trade deal).

Incomes are also expected to rise, by a smidgeon this year (just 0.2%, but every bit counts, right?) and 2.7% in 2022.

What Does All This Mean for Those Contemplating Moving?

For those weighing up their options, but who aren’t ready to make a move just yet, these market forecasts, along with the fact interest rates are low, will most likely prove reassuring.

Even if people are not in a position to take advantage of the Stamp Duty holiday (which ends on March 31), if their priorities or circumstances change, there will still be plenty of good reasons to act.

Consider too that most of us move for lifestyle reasons. Families grow, people retire, relationships blossom (or end) and employment opportunities change.

Major life events don’t necessarily mirror property trends. For most of us, moving is a big decision and we don’t do it on a whim. We weigh up the pros and cons and ponder our next move in our own time.

A Positive Outlook

This has, so far, been a year of famine and feast for the property industry, of low activity followed by hyperactivity. But remember, most years aren’t quite so dramatic.

The most recent forecasts should give potential-movers in Teignbridge the confidence to make decisions on their own terms for the mid to long term.

If you’ve got any questions about the property market or would like to get advice specific to your situation, get in touch with us here at Chamberlains. We’re here to help.

 

 

In this three-minute read, we look at the dos and don’ts of photography when it comes to marketing a property.

When selling or letting a property, it’s impossible to overstate the importance of getting the imagery right.

As most buyers and renters spend hours scrolling through property portals before arranging viewings, first impressions are crucial.

So why then do so many people get it wrong? Such is the volume of bad estate agency photos out there, that there are entire websites dedicated to mocking dodgy property pics (check out Terrible Estate Agency Photos).

To avoid becoming an object of ridicule, here is a list of what NOT to include in your marketing photos.

• Grandpa, grandma or any other family member. Property photos that include people always look a bit creepy. It’s never okay, even if the person is sitting in the background or giving a friendly wave.
• Boarded up windows and doors. If windows and doors are badly damaged or boarded up, replace them – or at the very least don’t photograph them.
• Doll collections. Whenever we see lots of dolls in a room (and yes, we have seen this in property photos) we immediately think of Chucky from Child’s Play (he still gives us nightmares). Dolls, along with mannequins and skeletons, belong on horror film sets only.
• Bathrooms covered in mould. Always give your home a good scrub before it goes on the market. People don’t want to view a property that comes with a health warning.
• Outdoor items left indoors. Lawn mowers, quad bikes and trampolines all belong outside. If for some reason you keep them inside, understand that this is not normal. Remove them from the premises before taking marketing photographs.
• Animals. All creatures great and small should be left out of property photos. They only serve as a distraction and make people wonder if the house smells.
• Badly photoshopped images. Don’t be tempted to digitally add a dining table or a sofa to a photo of an unfurnished room. It never looks convincing; the furniture always looks like it is levitating ever so slightly off the floor. Other no-nos include adding sunsets or wildlife to images of the back garden.
• Mirror images. When taking pictures of a room that has a mirror, a photographer can inadvertently capture their own reflection. This is too Alfred Hitchcock for our liking. Photographers should always position themselves carefully to avoid making a cameo appearance in the photo.
• Intimate portraits of your lover/husband/wife. So, you’ve been to life drawing classes and are rather proud of that racy charcoal sketch you did of your beloved. We love your creativity but please keep such personal items out of sight.
• Broken furniture piled high. People will be put off by the thought of having to fork out for a skip (or two) to remove your junk.

These are the most extreme examples of property photo fails, but the principle stands for all property marketing imagery. Make sure every room is clutter-free and clean and plan the shots.

Ideally get a professional to take the photographs for you. They’ll understand how to make the best use of light and to make rooms look spacious and airy.

Here at Chamberlains we get the picture. We’re experts at showing homes at their best and always use professional property photos. Book your free property appraisal now. 

It’s perfectly understandable to be worried about your finances at a time like this. Lenders are offering payment holidays across mortgage, loan and credit card products but it is a good time to get some advice. We’re proud to recommend Cooper Associates. They offer an award winning fee free service and are available to chat to you over the phone or on a video call to go through your options. Simply go to www.chamberlains.co/mortgage-advice and fill in the short form and an advisor will be in touch.