Friday, 4 December 2020

Can You Save Money From The Proposed New Capital Gains Tax Changes


Warrington Landlords and Second Homeowners Will Probably Save Money From The Proposed New Capital Gains Tax Changes

If the proposals were adopted in full, some Warrington landlords would pay £8,000 less Capital Gains Tax than they would currently

The government borrowed £394bn this financial year (April ‘20 to April ’21). This figure does not include the cost of the November lockdown and support measures, which means the final bill will probably be over half a trillion pounds. Ultimately, these billions will need to be paid back to cover the cost of Coronavirus.

The Office of Tax Simplification (OTS) published a report for tax reform and, as was predicted by many in the press, the Government Dept suggested the Chancellor contemplate readjusting current Capital Gains Taxation (CGT) rates with a person’s own Income Tax rates. This would mean increasing the rate of CGT for selling a buy to let property from 28% to 40% for high-rate taxpayers and 45% for additional rate taxpayers. To add salt to the wound, the OTS is suggesting cutting the £12,300 annual CGT allowance.

This has led to many Warrington buy to let landlords contacting me in the last few weeks, wondering if this is the time to exit the Warrington buy to let property market, especially as they have been hit by growing levels of rental legislation and higher taxes.

With tax bills about to go through the roof, is this the time to
leave the Warrington buy to let property market?

Yet, like all things, the devil is in the detail as Warrington 2nd homeowners and Warrington landlords may well finish up having lower CGT tax bills with these new taxation proposals, even though the CGT restructurings are being introduced to raise the much-needed cash for the Government.

Apart from the suggested cut of the annual CGT allowance and increase in the CGT percentage rates, the OTS report also proposed reintroducing rebasing and indexation. In layman’s terms, the OTS are suggesting all gains made before 2000 would not be taxable (rebasing) and any capital gains would be calibrated to account for inflation.

So, what would that actually look like for a Warrington landlord? Let us assume we have a Warrington landlord who bought a Warrington buy to let property in 2000.

Under the current CGT rules
· The average value of a Warrington property in 2000 was £77,200
· Today, that same Warrington property has increased in value to £224,100
· Meaning a profit of £146,900
· As our Warrington landlord is a high-rate taxpayer (earning £60,000 a year), their CGT bill would, after the annual allowance, be £37,688

Under the new proposed CGT rules

Under the new proposals, the CGT payable (assuming the CGT rate of 40% and a lower annual allowance of £5,000) the same Warrington landlord would only pay £29,646 – a saving of £8,000.

And the savings don’t stop there. Remember, under the new OTS proposals, all capital gains made before 2000 would also be tax-free.

However, let us not forget the responsibility of the OTS is to report on tax simplification opportunities, not to set Government taxation policy. None of us have a crystal ball on what Rishi Sunak will do with CGT on buy to let property or second homes. Although, as time has always taught us with investments, often the worse thing to do is to make impulsive decisions on what MAY happen.

You have to remember, CGT only gets charged when you sell or transfer your investments, and most people use their rental investments to provide them with income. If you did sell up, the best 90-day building society accounts are obtaining 0.8% pa, the stock market is a rollercoaster (good luck with that) and Government 10-year bonds are paying a princely 0.324% pa... where else are you going to invest to get the income Warrington property investments provide?

Property is an asset you can touch, feel and ultimately understand. Maybe, this is the time (if you haven’t already) to take portfolio advice on your Warrington buy to let investments? Many Warrington landlords do so, whether they use our agency, another Warrington agency or you manage your property yourself. The service is free of charge, we don’t need to meet face to face as we can do it over Zoom and it’s all without obligation. I promise to tell you what you need to hear – not what you want to hear … what do you have to lose?



If you are looking for an agent that is well established, professional and communicative, whether you’re buying, selling or looking for an investment opportunity, then contact us to find out how we can get the best out of the Warrington property market.

Email me on manoj@hamletwarrington.co.uk or call on 01925 235 338 – we are based on the Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Warrington Property News.

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
Hamlet Homes Warrington, your local Estate Agent
Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
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7 Tips for Making the Most of your Living Space


When it comes to your home space, there will no doubt be times when you wish there was a bit more of it. If things are feeling a bit cramped, then you may be tempted to take a page out of Marie Kondo’s book and start throwing things out. However, there are ways to use your living space that allow you to keep your personal things while still making the most of the space you have.

Here are a few things to try in your home.


Choose the Right Furniture – And Use Multifunctional Pieces

Furniture that’s too large for a space will soon dominate it and make the room feel smaller by comparison. Switching to slightly smaller sizes, for example, from a king to a double bed, may only give you a few extra inches, but the room will immediately feel bigger. Swap large bookshelves for fitted shelves and consider using clothes rails instead of wardrobes for a contemporary look. Stools can also work well in the living room, instead of oversized armchairs. Another thing to look out for is multifunctional furniture that can be used for more than one purpose. For instance, sofas that fold into beds, or coffee tables that can be raised and used for dining. This will mean you have less furniture in each room.

Think Vertically

If you want a room to look bigger, you need to draw the eye upwards and avoid using furniture that takes up too much floor space. Choose long, thin bookcases or build shelves close to the ceiling to make your room feel bigger and brighter. Get rid of bulky TV units and mount your television on the wall; as long as the wires are well hidden, it’ll look so much better. Also, avoid any pieces of furniture that are short and horizontal, like cabinets. Another bold move is to use vertical stripes to instantly make it look like you have those covetable high ceilings. Just a subtle stripe in neutrally coloured wallpaper can make a big difference.

Plan Your Layout Carefully

Draw a rough sketch of your room’s shape and then plan where you’ll put the furniture to maximise space. It can be easier to plan on paper than it is to spend hours moving things around. If you’re buying new furniture, look for pieces that complement the space nicely and work with the flow.

Keep It Light

If a room is already small, the worst thing you can do is block out the natural light with a set of dark curtains. Stick to blinds, which will leave your windowsill free for a few photos for a contemporary look. If you absolutely must have curtains and hate living without them, then choose a neutral colour and have them properly fitted, so they don’t trail on the ground.

Keep It Neutral, but with Statement Pieces

It’s important not to make your room too beige when you’re trying to make the space look bigger. If it looks too cold and sterile, then it’s simply not going to be an enjoyable space. Instead, you should opt for neutral tones, with lots of textures for a luxe feel, then add a couple of statement pieces that focus the eye. For example, a bright accent chair or unique lamp are things that people will see right away, so they won’t be thinking about the size of the room.

Use Lighting Properly

Different types of lighting can be used to draw attention to focal points in a room. Overall, your space needs to be well-lit; otherwise, it’s going to feel claustrophobic. You can then use pieces such as pendant lights over a living area or dining table to mark the different sections of a room. In a small space, stick to wall-mounted lighting where possible, avoiding oversized floor or table lamps.

Add Some Unique Touches

Without a few personal objects on display, your living space will look too much like a show home, and it won’t feel cosy. In small spaces, a few objects on a shelf can brighten up the room and draw attention from its size. Whether it’s family photos or unusual items you picked up while travelling, don’t be afraid to make the space your own.

Whatever the size of your home, you’ll want to make the most out of your living space. A few changes to the design or layout can make a big difference, creating the feel of more space and giving you a place that feels homely.

For expert buying and selling property advice, contact our team of professionals at Hamlet Homes Warrington on 01925 235 338 or call into our office.



If you are looking for an agent that is well established, professional and communicative, whether you’re buying, selling or looking for an investment opportunity, then contact us to find out how we can get the best out of the Warrington property market.


Email me on manoj@hamletwarrington.co.uk or call on 01925 235 338 – we are based on the Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.


Don't forget to visit the links below to view back dated deals and Warrington Property News.

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
Hamlet Homes Estate Agents Warrington Facebook Page
Hamlet Homes Estate Agents Warrington Twitter Page

Monday, 30 November 2020

SCAM WARNING – Beware, property scammers are on the increase


Sadly, we’re seeing more and more tenants losing money to hoax landlords and properties.

With more of us searching for homes online, there’s a real opportunity for scammers to take advantage of unsuspecting tenants.

Having some basic knowledge about the techniques they use is essential if you want to rent a place successfully.

If you’re on the rental property hunt, we’ve put this short video together to help you avoid getting scammed.

I hope you find the video useful.

Have you got your own useful tips on how to avoid rental scams? If so, please leave us a comment below and share your thoughts!






If you are looking for an agent that is well established, professional and communicative, whether you’re buying, selling or looking for an investment opportunity, then contact us to find out how we can get the best out of the Warrington property market.

Email me on manoj@hamletwarrington.co.uk or call on 01925 235 338 – we are based on the Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Warrington Property News.

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE


Hamlet Homes Warrington, your local Estate Agent
Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
Hamlet Homes Estate Agents Warrington Facebook Page
Hamlet Homes Estate Agents Warrington Twitter Page




Friday, 27 November 2020

How to get Organised for Moving Day


Here’s a little known fact: Many people in the UK regard a house move as one of the most stressful life experiences that they’ll ever endure.

Yes, while owning a new home is exciting, the process of moving itself isn’t something that most people look forward to. And as most people will move multiple times throughout their life, the Hamlet Homes Warrington team are here to arm you with the most useful tips you’ll need to organise yourself ahead of your next moving day.

We’re also here to tell you that it doesn’t need to be all that bad! Get yourself adequately organised for moving day, and you’ll save yourself much of the associated stress.

Here are our essential tips to help you get organised for moving day:

Start the packing process as early as possible

Let’s face it, packing can be one of the most tedious things about moving home. But, it’s like facing any chore that you dread, but that needs to be done – it’s best tackled first! The longer you procrastinate about packing, the more anxiety and stress the entire moving process will cause you.

Set yourself a timing plan for packing that’s realistic. Trust us, you’ll feel a lot calmer and more prepared if all your packing is behind you by the time moving week arrives.

For an average-size four-bedroom home, we recommend starting the packing process about six weeks before the big move day. Yes, that far in advance! This way, you’ll have enough time to properly sort through your belongings, get rid of any clutter and give away any items you don’t want to take with you.

Become label-obsessed

No, we’re not talking about clothing labels. We’re talking about good old sticky labels that you can slap onto your packed boxes. Label your boxes effectively so you can ensure that your removal company will be able to transport your things as quickly as possible and to the correct room.

So, what exactly does effective labelling involve? Well, just make sure that your writing is legible, and include a short description of what the box contains. Label all sides of the box so it can be seen from any angle. Finally, take your label game up a notch by using colour coded labels. Pick a different colour for each room, and you’ll pretty much guarantee that everything will end up in the right room. Oh, and your movers will thank you for it.

Save your old (and new) floors from damage with scraps of old cardboard

Yes, you read that right. Part of the anxiety of moving day is related to the potential damage that your home (both old and new) could face as part of the move. Get rid of that stress by taking some preventative action.

This is a lot simpler than it sounds. Simply lay down flat cardboard strips (using old cardboard boxes) and avoid dents and scuff marks caused by all the hustle and bustle of moving day. Although if you’ve hired professional movers, you will have the peace of mind that they’ll be trained on how to move without causing any damage.

Hire professional movers for the big day

The number one way to ensure that you’re super organised for moving day is to hire a professional moving company.

Although many people attempt to move without professional help, this can be a much more stressful and challenging experience. Movers can ensure that all your belongings get to your new home in one piece, and in much less time!

Not sure where to find someone? Ask us for recommendations on local professional moving companies in Warrington and get some quotes from a few companies in advance of the move. We recommend booking as soon as you know your move-in date, as popular firms can get quite booked up over peak periods.

Take some time off work for a day or two

Try to take a couple of days off work around your big moving day. This gives you a little extra time for that inevitable last-minute packing and settling in at the other end.

Searching for a home in Warrington?

Now that you’re equipped with all the tips you need to help you manage your next moving day let us help you find a home that’s worth any moving stress. At Hamlet Homes Warrington we have years of experience matching both buyers and renters with their perfect home. Get in touch today on 01925 235 338 and speak with a member of our team to kick off your house hunt.



If you are looking for an agent that is well established, professional and communicative, whether you’re buying, selling or looking for an investment opportunity, then contact us to find out how we can get the best out of the Warrington property market.


Email me on manoj@hamletwarrington.co.uk or call on 01925 235 338 – we are based on the Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.



Don't forget to visit the links below to view back dated deals and Warrington Property News.

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
Hamlet Homes Estate Agents Warrington Facebook Page
Hamlet Homes Estate Agents Warrington Twitter Page


Wednesday, 25 November 2020

The 2020 Review of the Warrington Property Market


Looking back at the Warrington property market for 2020, it certainly can be seen as a frenetic game of two halves, albeit with a very long half time in the spring. Between the General Election in mid-December and Christmas, many Warrington agents saw an unusually higher uplift in activity in the property market just as we were getting ready for Christmas 2019. Yet once the New Year festivities were out of the way, that pre-Christmas uplift in the local property market was nothing when compared to the bang on Monday 6th January 2020 with the fabled ‘Boris Bounce’ of the Warrington property market. January, February and most of March were amazing months, with pent up demand from people wanting to move following the Brexit uncertainty of 2018/9 being released in the first few months of 2020.

The pandemic hit mid-March, and the Warrington property market was put on ice for nearly three months (as was almost everyone else’s lives). Yet at the end of spring, the property market was one of the first sectors of the economy to be re-opened. Every economist predicted house price drops in the order of 10% in the best-case scenario and 25% in the worst, yet nothing could be further from the truth.

When the lockdown restrictions were lifted from the property market, those three months allowed Warrington homeowners to re-evaluate their relationships with their homes. The true worth of an extra bedroom (for an office) became priceless, as people working from home were having to take calls and work from the dining room table. Warrington properties with gardens and/or close to green spaces all of a sudden became even more desirable. More fuel was put on the fire of the Warrington property market with the introduction of the Stamp Duty Holiday, meaning buyers could save thousands of pounds in tax if they moved before the end of March 2021. This stoked the local property market and now …

Property values in Warrington are set at 3.4% higher today compared to a year ago.

The fallout of that increased demand for a new home meant those Warrington properties on the market coming out of lockdown in early summer with those extra rooms and gardens were snapped up in days for ‘full’ price. Warrington buyers were having to spend their Stamp Duty savings on paying top dollar for the home of their dreams. Yet the increased number of properties coming onto the market in the late summer quenched a lot of that demand and the prices being achieved became a little more reasonable and realistic. This increased the number of properties sold (stc), so much so that nationally, almost two thirds more homes have been sold (stc) than would be expected at this time of year!

However, as we all know, just because a property is sold (stc), it doesn’t mean the property is actually sold. The number of people who have moved home in the last 12 months in Warrington, is as you would expect, much lower. Over the last 10 years, on average 2,798 Warrington homes have changed hands per year, compared to only 1,410 Warrington homes in the last 12 months.

So, what is a Warrington property worth today? Drilling down to the four types of homes locally, some interesting numbers appear. Looking at the table, you can see what the average property types are worth locally, and within each type, the average price paid in the last 12 months. (So, if the average price paid for the last 12 months is higher than the overall average, that means more higher priced property in that type has sold in the last year compared to the overall average – and vice versa)

 

Average Overall Value Today

Average Price Paid in the Last Year

Warrington Detached

£350,160

£329,620

Warrington Semi-Detached

£199,230

£196,080

Warrington Town House / Terraced

£142,240

£143,870

Warrington Apartments/ Flats

£140,390

£118,150


Of course, these are the overall average values. To give you an idea of what Warrington properties are selling by their square footage, these are those averages values …

Average Value per sq. ft (internal)

Warrington Detached

£215.82

Warrington Semi-Detached

£196.73

Warrington Town House / Terraced

£153.26

Warrington Apartments/ Flats

£173.85



So, what about 2021? Well normally when the Country’s GDP drops like a stone (as it did in the Summer of 2020), the property market follows in unison. Yet as the economy went south, the house price growth and activity in the property market went north. This would appear to be a quite remarkable outcome given that economic framework, but it is gradually becoming clear that, as far as the Warrington property market is concerned, people’s time in lockdown has been spent reflecting on what they really wanted from their home and has meant that the normal rules of the game simply do not apply… for now.


If you are looking for an agent that is well established, professional and communicative, whether you’re buying, selling or looking for an investment opportunity, then contact us to find out how we can get the best out of the Warrington property market.

Email me on manoj@hamletwarrington.co.uk or call on 01925 235 338 – we are based on the Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Warrington Property News.

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE

Hamlet Homes Warrington, your local Estate Agent
Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
Hamlet Homes Estate Agents Warrington Facebook Page
Hamlet Homes Estate Agents Warrington Twitter Page


Friday, 20 November 2020

10 Frequently Asked Questions When Selling Your Home in Warrington!


If you are looking to sell your house in Warrington, you may very well be feeling a little overwhelmed, and who can blame you? It is a huge undertaking, not to mention an incredibly emotional time for you as a homeowner.


Many home movers find it extremely difficult to keep their personal feelings separate from their business brain when it comes to selling their home, but that being said, you can successfully sell your home without letting your emotional attachment to the property hinder your efforts.

However, it’s good to be as informed and prepared as possible before you start marketing your property, so let’s start with our 10 most frequently asked questions when selling your home.

What time of year should I sell my house?
This is a very important question as there are key times in the year when people are more likely to be looking to buy a new house. Traditionally springtime is the best season to sell your home, with the first two weeks of May traditionally having the highest sales figures. The least effective months to sell your home are October and December, as less people want to go on viewings after work when it is cold and dark, plus many are preoccupied with Christmas.

How long will it take to sell my house?
Unfortunately this is similar to asking “how long is a piece of string”, with many factors influencing how quickly, or slowly, your home will sell. These include:
  • Your listing price
  • The condition of your home
  • The condition of the local housing market
  • How you market your home
  • General factors such as political matters

Rest assured though that here at Hamlet Homes Warrington, we are pro-active year round and will market your property effectively whatever the season or climate!

How much is my house worth?
Of course you will need to know roughly how much your house is worth before you put it on the market. The simplest way to gauge how much your house will sell for is to ask us for a free, no-obligation market appraisal. You may also like to do some research of your own by looking at comparable sales in your local area.

How much will it cost me to sell my house?
There are of course, costs that you will incur when selling your home, including your estate agent’s commission which can be anywhere between 1-3%, solicitors fees, stamp duty and any removal costs.

Should I make repairs or sell my house as it stands?
This is a tricky one as some home buyers are looking for a project property (albeit one at a knock-down price) and others may want a property that they can move into immediately with minimal fuss.

As a general rule, any small, cosmetic repairs that will not cost a lot of money should be carried out before you show around any potential buyers. For larger, more costly projects, you can either carry out the work yourself or ensure your asking price reflects any work that the new owners will need to carry out.

Should I hire an estate agent?
An estate agent will have sound property knowledge, access to marketing resources, potential buyers and local market data that are invaluable in helping you sell your property, so it is advisable to hire a professional!

What should I do if my house is failing to sell?
There could be several reasons why your house is not selling as quickly as you would have hoped. These include:
  • Your asking price is too high
  • Repair issues are putting potential buyers off
  • Your property listing is not up to scratch

This is why it’s always best to speak with a property professional who can advise you on the best course of action.

How can I prepare my home for sale?
When it comes to making your home as appealing as possible to potential buyers, it really is a case of sticking with what works; namely the idea of baking bread and arranging fresh flowers around your home! It may sound silly, but making your home smell nice and inviting really can make a difference to how a potential buyer feels about your home.

Other top tips include:
  • Clearing away any clutter
  • Applying a fresh coat of paint on the walls
  • Tidying your front garden to improve your kerb appeal
Should I be present during viewings?
This is an easy one. No, preferably not! It can be very uncomfortable to listen to a potential buyer point out what they don’t like or what they would change about your home. Not to mention the fact that they may not feel comfortable talking to your estate agent about your property if you are standing right next to them!

Therefore, for all parties involved, it is better if you make yourself scarce during all viewings.

If I accept an offer on my home, is it legally binding?
Your estate agent is legally required to pass on all offers on your property to you, although you can reject any offer outright if you are not happy with the price offered.

If you do accept an offer, you are not legally bound to it. If you receive a higher offer or simply change your mind, you are within your rights to decide not to sell your home to your buyer, although this is always a distressing situation for the other parties involved.

Good luck if you are selling your home, or considering putting your property in Warrington on the market.

For no-obligation advice on buying or selling a home in Warrington please contact our expert property team at Hamlet Homes Warrington on 01925 235 338 or call in and see us. We look forward to seeing you.



If you are looking for an agent that is well established, professional and communicative, whether you’re buying, selling or looking for an investment opportunity, then contact us to find out how we can get the best out of the Warrington property market.



Email me on manoj@hamletwarrington.co.uk or call on 01925 235 338 – we are based on the Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.



Don't forget to visit the links below to view back dated deals and Warrington Property News.



CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE


Follow my Warrington Property Market Blog

Hamlet Homes Warrington LinkedIn Page

Hamlet Homes Estate Agents Warrington Facebook Page

Hamlet Homes Estate Agents Warrington Twitter Page

Wednesday, 18 November 2020

Are Warrington First-Time Buyers are Being Locked Out of the Local Property Market?



With, the banks reducing the number of low deposit mortgages (i.e. deposit of 10% and below) since Covid-19 hit in the spring, this has meant that the number of Warrington first-time buyers has been decreasing quickly, meaning many of those would-be Warrington buyers wanting to make the first step on the Warrington property ladder will stay in the Warrington rental sector.
This has caused demand to grow amongst Warrington renters for larger homes to ride out Covid, as they hunker down for the long haul to wait for normality to return to the property market. This has caused …

Warrington rents to rise from £568 to the current £638 
per month over the last 12 months, an increase of 5.1%.

Interestingly, the opposite is happening in Central London, where the rents tenants are having to pay have dropped by 3.8% in the last 12 months, as demand has dropped like a stone. It appears Central London tenants are looking to move out to the suburbs, in search of bigger homes, gardens and green open spaces. For example, the average rent for a 1-bed apartment in St. John’s Wood currently stands at a very reasonable £1,817 per month whilst a 2-bed apartment in Kensington and Chelsea is currently at an average bargain rent of £3,715 per month (yes, they might be low compared to last year, yet for us in Warrington, that still seems like a lot of money!). Also, there has been further downward pressure on Central London rents, as many Airbnb landlords have dumped their short-term holiday let properties onto the long-term rental market as the tourism in the capital has dwindled because of the pandemic.

This has been the sharpest drop in Central London rents since the summer of 2009, when the property market was still stumbling from the Credit Crunch.

This means there is a reverse of the trend of the 2010’s (2010 to 2018 to be exact), when initially the London property market was shooting up whilst the rest of the country was in the doldrums. When the rest of the UK did start to rise slowly in 2013, London kicked on even further like a rocket … yet now it appears the opposite is happening.

Getting back to Warrington, according to the Land Registry, property values currently stand 3.4% higher than a year ago, this is split down as follows:

Detached Warrington homes 3.6% higher
Semi-detached Warrington homes 4.3% higher
Townhouse / terraced Warrington homes 3.0% higher
Warrington apartments / flats 0.4% lowerYet, do remember, these figures do NOT take into account the prices paid by desperate Warrington buyers this summer, often paying top dollar to secure the property. This will only filter through in the figures released in the spring.

So, why are the banks curtailing the number of low deposit mortgages, meaning that first-time buyers must find a much larger down payment before they are able to buy their first Warrington property?

The reason is the banks are fearful of a house price crash in 2021 (although if you recall I wrote about that a few weeks ago and the reasons why that is less likely to happen). They too are afraid of the frothy nature of the property market since the end of the first lockdown in late spring. The bank is lending its own money to buyers and no mortgage lender wants to be holding an enormous amount of these types of high percentage mortgages if house prices fall in 2021, because the bank would be saddled with negative equity and repossession on their hands (and we all know what that did to the housing market in the late 1980’s and early 1990’s as repossessions rocketed).

This can quite clearly be seen in the pricing and availability of low deposit mortgages. As the Bank of England has reduced its base rate to 0.1%, in the last 12 months 10% deposit mortgages rates have actually increased from 2% to 2.8%. Also, when lenders have been offering 10% mortgages throughout the summer, borrowers have had only a 24-hour window to commit before the lender withdraws the mortgage product from the market because of over subscription. As with all economics, if demand is greater than supply, the price goes up. That extra 0.8% doesn’t sound a lot until you realise a first-time buyer would have to pay an additional £167 per month in interest payments on a 10% deposit mortgage, assuming they borrowed £250,000.

However, it’s not all doom and gloom for first-time buyers as there are embryonic signs that the 10% deposit mortgage market could gradually be returning to normal, as I have recently heard some lenders are taking up to a week for their 10% deposit mortgage offers to run out. Fingers crossed!

So, what does this all mean for Warrington landlords? Those Warrington landlords with properties with gardens and larger rooms will be seeing increased demand. The ability to have pets in the rental property is also an advantage, and depending on the property, can add a decent premium to the rent that can be charged.

One final thought though for all homebuyers in Warrington, be aware it’s going to be very challenging to get your house purchase through in time to meet the 31st March 2021 stamp duty holiday cut off if you are starting the process in November. Make sure your lender and solicitor have the capacity to meet that deadline and when you are asked for information, you drop everything to provide it. The odd day delay here and there will mean the difference between you getting the keys for your new Warrington home before the end of March 2021 and saving thousands of pounds in Stamp Duty Tax … or feeling a fool from the 1st of April 2021 and having to pay the tax!

If you are looking for an agent that is well established, professional and communicative, whether you’re buying, selling or looking for an investment opportunity, then contact us to find out how we can get the best out of the Warrington property market.

Email me on manoj@hamletwarrington.co.uk or call on 01925 235 338 – we are based on the Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Warrington Property News.


CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE

Hamlet Homes Warrington, your local Estate Agent

Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
Hamlet Homes Estate Agents Warrington Facebook Page
Hamlet Homes Estate Agents Warrington Twitter Page