Friday, 19 February 2021

COVID -19: An Update for Warrington Buyers and Sellers From Hamlet Homes Warrington



We are delighted that Hamlet Homes Warrington are able to remain open for market appraisals and viewings, however, we realise that we also have a social responsibility beyond that of being your local estate agent and recognise that as a buyer or seller, you will have concerns given the current situation with COVID-19.

We want to reassure you that the team at Hamlet Homes Warrington will be following the Government’s health and safety guidelines thoroughly and ultimately will always ensure the wellbeing of our clients, our team, and our community comes first.

At the time of writing, it has been announced that restrictions around property viewings and transactions remain as per guidance given earlier this year. However, COVID-19 has not gone away and as yet there is no vaccine, so we will be carrying out our business in an extremely safe and highly-managed way to ensure our clients and staff are protected at all times.

Viewings
We are regularly reviewing updates on viewing guidelines from the Housing Minister, and will always ensure these guidelines are followed to the letter. Currently we will be adhering to the following:

Social distancing (2 metres) will be observed at all times. Our staff may remain outside the property whilst the viewing takes place.

If you would prefer to view a property virtually – we do offer this option.

Viewing Limits: All viewings will be limited to either one viewing per property per day OR viewings will be scheduled apart, for example, with a delay between each viewing.

Time Limits: The time viewers spend inside a property will be limited to an absolute maximum of 30 minutes.

Viewing Numbers: We will allow a maximum of two people inside a property along with the owner or member of our team.

Contactless Viewings: Vendors will be asked to leave cupboards and doors open so that viewers to the property do not need to touch them. Viewers will be asked not to touch surfaces unnecessarily.

PPE: Our team members will wear gloves and masks while conducting viewings. PPE will be available for viewers if they do not bring their own.

Health Declaration: Vendors and viewers will be required to sign a declaration, stating that they do not have any COVID-19 symptoms.

Market Appraisals
There are no specific valuation guidelines but we are undertaking similar precautions to our viewings procedure.

Further information
As soon as we receive updates, we will provide further information.

Guidance for Sellers
If your property is already on the market or is shortly coming to market, please reassure potential buyers by making sure your home is clean and safe to view. 

Still deciding whether now is the right time to buy or sell?
The team at Hamlet Homes Warrington will be delighted to talk you through your options. We appreciate your circumstances may have changed or might be difficult right now, but we can help you talk it through in confidence.

We want to help you make an informed decision, so please call us for an informal chat on 01925 235 338 or email us at manoj@hamletwarrington.co.uk.

Above all, please continue to stay safe.

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


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Half of Warrington Homeowners Move Again Within 5 Years and 39 Weeks – Why?

 


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

In Britain, there are 27,071,500 households, of which 17,044,450 are owned and are worth a total of £3,925,865,212,950 (£3.92 trillion). Over the last 5 years, an average of 86,096 properties sell each month, meaning just over a million UK households move home per year. Therefore, the average British homeowner moves every 16 years 5 months.

These statistics refute a common hypothesis that British neighbourhoods are becoming more fleeting and transitory. On the face of it, they appear to show that, once you have succeeded to buy a property you can call home, there isn’t much motivation to move again.

So, aren’t people moving home so much?

Could it be put down to a certain sense of complacency or apathy to moving home? Whereas we might love our home in Warrington, most of you (including myself) still want to ‘better our lives’ with a bigger house, better area etc, which typically requires us to climb up the Warrington property ladder.

Yet with Warrington house prices having risen by 180.1% in the last 20 years, the cost of going up the next rung on the Warrington property ladder is prohibitive.

Everyone harks back to the 1980’s, when we had an upbeat booming property market as a backcloth, Brits moved home every eight years; so now with the average at just over 16 years this equates to each British homeowner moving around three to four times in their adult lifetime. Maybe we should all call our homes ‘Dunroamin’ and be done with it!

Or does it?

We have all heard the phrase ‘lies, damn lies and statistics’ … well the stats mentioned above hide some amazing features of the British property market. When homeowners get into their 50’s and 60’s, their tendency to move home drops like a stone. The average length of time a homeowner without a mortgage moves home is 24 years and 7 months (and just under 7 out of ten outright homeowners i.e. without a mortgage are 65 years old or older).

Yet, homeowners with a mortgage move on average every
10 years and 11 weeks.

So, whilst I cannot determine who has a mortgage and who doesn’t, I can look at how quickly people move home in Warrington. I have looked at the last 50 property sales in Warrington, and I have found some interesting findings.

On average Warrington homeowners only move every
12 years and 3 weeks.

Nothing interesting about that you might say, when compared to the national average ... yet the devil is in the detail.

There appears to be a two speed Warrington property market … look at the top 25% of Warrington home movers, and then the next slice … these Warrington people are moving home really quickly, yet the gap for the next two slices widens tremendously.
  • Top 25% quickest Warrington home movers move every 3 years & 26 weeks
  • The next 25% quickest Warrington home movers move every 7 years & 44 weeks
  • The next 25% quickest Warrington home movers move every 12 years & 13 weeks
  • Whilst top 25% slowest Warrington home movers only move every 24 years
When looking at the properties that fall into the later bands (i.e. the ones that don’t move/sell so often), they tend to be the larger properties where the homeowners have lived for 25/30 years plus.

The lesson we all should learn is that once people get into their 50’s and 60’s, their propensity to move home drops considerably. This means the properties on the lower rungs of the Warrington property ladder do appear to sell quickly (as they are occupied by younger homeowners) yet once Warrington people get older, their tendency to move diminishes. This puts a roadblock on the younger generation wanting to buy the larger Warrington properties these mature homeowners live in.

What is holding the older generation back from selling and downsizing to free up homes for families that desperately need them? Some of it will be apathy, some of it will be holding on to the home that they brought their family up in, yet the bottom line is …

46.5% of the homes owned in Britain have
two or more spare bedrooms.

As a nation, we need to rethink how we can encourage older homeowners to sell their large homes to release them to the younger families that desperately need them. Some suggest tax breaks, yet the Government won’t be in the mood to give huge tax breaks as the measures to protect the economy over the last 12 months will ultimately need to be paid back.

One thing I do know, we as a Country have seen (and will continue to see) a lot of demographic change together with an increasing elderly population, so it’s not just about how many homes we build, but whether we are building the right kind of homes the older generation will want to move into.

Interesting times ahead for the Warrington property market!

If you have a Warrington property to sell or let in the coming weeks, months or years and would like to know how this and other factors will affect you and your property ... without obligation, don’t hesitate to give me a call or drop me line.

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 

Friday, 12 February 2021

How to Move Home in Warrington Stress Free

 

According to a recent survey, 60%* of Brits have put off looking for a new home purely because of the pressures involved with the moving process.

Furthermore, 34% said that they had suffered severe anxiety as a result of their last move and 65% experienced sleeping problems.

However, it doesn’t have to be such a terrible ordeal.

Moving home in Warrington should, and can, be an exciting time. A chance to start afresh, seek out new opportunities and make your new property your own.

Research removal companies

You are going to be moving all your worldly possessions from your old home to your new one, so you need to make sure that they are in safe hands. Therefore, it is vital that you spend time researching removal companies in advance to ensure you find a reputable and trustworthy company.

If possible, ask family and friends for recommendations as well as reading a variety of online reviews from previous customers. It is a good idea to choose two or three removal firms to provide you with quotations before the big day so that you achieve a competitive price and know your moving needs will be adequately catered for.

Have a thorough clear out

Now is the ideal time to get rid of any unwanted belongings, such as furniture that won’t fit or be required in your new home, any clutter that has been piling up in the back of your cupboards, and basically any items that are surplus to your needs. Don’t forget about the garden, the loft (if you have one) and any outdoor storage areas.

Make a packing plan

You may think that you can get your packing completed in a matter of days, but sadly, this exciting, yet arduous task always takes longer than you think it will! Especially if you want to pack effectively so that the unpacking process in your new home can be carried out quickly.

It is a good idea to use colour labelling on your moving boxes, for example, blue for the bathroom, yellow for the kitchen and so on. Work your way systematically through each room, including the garden, and complete the packing for that room or area before moving onto the next.

Take care of all moving admin

You will have enough to deal with on the big day without having to worry about locating paperwork, or carrying out vital administrative tasks that could have been taken care of weeks earlier.

Before moving to a new house you should:
  • Redirect your post – you can sign up to Royal Mail’s redirection service if you need more time to contact all your providers.
  • Transfer school records. If you have children that will be attending a new school, you should ensure their school records are sent over before you move.
  • Ensure you are insured for moving. Check to see if your belongings insurance covers a house move and if not, ask your removal company if they can provide further cover.
  • Inform your utility companies about your move, including your home insurance providers. You should also take the gas, electricity and water meter readings before you leave your property.
  • Confirm your moving day. This may seem an obvious task, but you will be surprised by how many people forget to do this.
  • You also need to ensure that you have details regarding the collection of keys to your new property from your estate agent.
Source a survival kit

If you want to have a smooth and stress-free journey from your old home to your new one, then you will need a moving day survival kit. This should include supplies that you will need throughout the day, so you do not need to go rummaging through your packed boxes.

Items you may want to include are:
  • Important documents such as information relating to your new home, contact details of your removal company, and any relevant insurance documents
  • Mobile phone chargers
  • Bottles of water and snacks
  • Games or devices to keep the kids occupied
  • Pet feeding bowls, food, toys and lead
  • Tea, coffee and a kettle
  • Loo roll!
It is also recommended that you pack a basic overnight bag so that you will have access to clean clothes, toiletries, medications, and snacks for the next morning.

Your survival kit will ensure you are organised on moving day and ready to start unpacking boxes in your new home stress free!

For further advice and for help with a stress free move in Warrington, contact the friendly team at Hamlet Homes Warrington on 01925 235 338. We look forward to assisting 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
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

Thursday, 11 February 2021

The Busiest December for the Warrington Housing Market Since 2006




Over the last six months, the Warrington Property Market has been flourishing. As soon as an estate agents “For Sale” flag went up, neighbours would be checking out Rightmove to see the internal pictures and compare the asking price to their own home (go on ... admit you do that too – every Warrington homeowner does). Flabbergasted by optimistic asking price tags, those same Warrington homeowners stand open-mouthed to see a sold slip added to the board a few weeks later.

Property values in Warrington are 7.5 per cent higher than a year ago.

The newspapers are full of stories of this mini property market boom, which has been fuelled by the Stamp Duty Tax cut, which ends on the 31st March 2021. Not only has it pushed up values in Warrington, but it has also theoretically brought forward house moves from 2021 into 2020.

The most up-to-date transaction figures (i.e. the number of people moving home) endorse it too. In the UK, 137,200 property sales/transactions took place in December, the highest number of sales/transactions in December since 2006 (when it topped 149,200 transactions, only for it to fall to 32,700 transactions in December 2008 at the height of the Credit Crunch).



The exact figures from the Land Registry for Warrington won’t be available for another six weeks or so, yet in December 2019, 384 properties changed hands in Warrington. Looking at anecdotal evidence of for sale board changes, my database and the portals, I believe we will end up around 505 to 535 Warrington property sales/transactions for December 2020.

So, how does all this compare to other years?

The number of UK transactions continued to be relatively stable between November 2019 and March 2020. That decreased by around half in April/May 2020 compared to April/May 2019, triggered by economic impacts relating to the public health restrictions introduced. Since the first lockdown was lifted in the late spring, sales/transactions have increased steadily upwards each month, mirroring the relaxing public health restrictions for the property market during the summer and autumn of 2020 and introducing Stamp Duty Tax holidays.

Before we all get the Champagne corks flowing, what the December national figures (and the corresponding provisional Warrington stats) don’t tell us, is that April to December 2020 transactions ended the year 13.7 per cent down compared to April to December 2019 transactions — the lowest since 2012. Don’t get me wrong, 13.7 per cent is impressive given that we are in the middle of a recession and even more remarkable considering there was a 48.7 per cent fall in transactions in 2008 (compared to 2007) when the Credit Crunch hit.

The biggest question though is, how much of the urgency since the summer to buy property can be credited to:
  • existing pent-up demand that built up in 2018/9 and was starting to be released in the ‘Boris Bounce’ in January/February 2020
  • new demand from home workers looking for bigger properties
  • people moving out of the big city centres
  • the Stamp Duty Tax cut
— or a mixture of all four?

Nobody can categorically know whether the UK property market would have ricocheted as quickly without the Stamp Duty Tax cut.

Talking to many buyers, sellers, agents and solicitors in the Warrington property market over the last three or four months, the anecdotal evidence I have collated from those people seems to imply that the outbreak of activity in the Warrington property market has mainly been put down to the lifestyle factors (bigger house with office space etc.) and pent-up demand, meaning the Stamp Duty Tax Holiday is seen as the icing on the cake for most people. Yet, there will be some buyers, whose motivation has been purely to save money on the tax duty. Overall though, in the vast majority of house purchases, this allows us to be reasonably hopeful about what will happen once the Stamp Duty Tax Holiday is withdrawn on the 31st March.

However, some newspapers are preaching a story that the property market will collapse without a Stamp Duty Tax Holiday extension. Nobody can argue that a phased withdrawal from the Stamp Duty Tax Holiday would be better than some homebuyer’s sales falling through, when the tax holiday finishes in late March. Even if your motivation isn’t to save money on the tax holiday, it could be the motivation of a buyer in your chain – meaning it becomes your issue. Nobody knew in July, when the tax holiday was announced, that we would get another two national lockdowns with the inevitable delays from remote working by solicitors, mortgage providers and local authority search departments. My advice to all people currently sold subject to contract is to ask the question, “What if we don’t complete the sale by the end of March?”. Better to sort it now than have a nasty surprise in the last week of March.

All property taxation is long overdue for reform, from Stamp Duty to Council Tax. When Margaret Thatcher tried to change local Rates to Poll Tax in the late 1980’s, those who are old enough can remember the Poll Tax riots, hence the nervousness of any party since to make any changes. There is no way the Government will abolish Stamp Duty when it raises between £11bn to £13bn a year, yet with all the upheaval we have experienced in the last year, there could be an appetite to change the way property is taxed.

The Government has already spent £271bn on interventions due to the pandemic and needs every penny so that it can start to repay those debts over the coming decades.

I have a feeling most Warrington property buyers and sellers would compromise on the price they pay for their next home to cover the cost of the Stamp Duty Tax after April, rather than lose the chance of owning the forever home they longed for during the first lockdown.

Therefore, don't be alarmed when we see property values ease slightly in Q3 2021 when the price paid for property reflects the lower price to account for the Stamp Duty that will need to be paid from the 1st April.

If you are a Warrington homeowner or Warrington buy to let landlord and you would like a chat about where you and your Warrington property stands in the current Warrington property market, don’t hesitate to give me a call or drop me a line.


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, 5 February 2021

Latest: A Coronavirus Update for Home Buyers and Sellers in England and Northern Ireland 2021


Moving House in Covid Times

The property sector has been one of the highlights of the COVID-19 story so far. After a shutdown of the industry in the first lockdown, the Government gave the go ahead for estate agents and lettings agents in Warrington to continue to work, meaning that people could still move.

The slight easing of restrictions coupled with the Stamp Duty Holiday gave our industry – and the economy – a real boost and according to the Office for National Statistics, UK average house prices “increased by 7.6% over the year to November 2020”, the highest growth rate since 2016.

We and other estate agents across the country have reported increased demand, and a strong appetite from both buyers and sellers to get moving.

And keep moving you can, but there are definite rules to be followed.

So, what can take place?
  • Buyers and tenants can move home
  • Removals companies can be used
  • Estate and lettings agents are able to operate
  • Viewings can take place
  • You can sell your home
What needs to happen?
  • Viewings can happen, but social distancing is required
  • Existing tenants or homeowners should leave the property for the viewing to take place
  • People should carry their own hand sanitiser and not touch surfaces (look with your eyes)
  • Appointments need to be arranged
  • No “Open House” viewings events are permitted
  • Face coverings need to be worn when visiting a house or an office
  • Properties should be cleaned afterwards
  • It is advisable to have windows open

The Government is happy for the property sector to keep moving, as it is helping the economy locally and nationally.

But ministers are also stressing the need to follow the guidelines and be flexible. Many people are working from home so processes may take longer.

We are able to offer virtual tours before any actual visits, so please do ask us for more information on these.

When moving, people should do so within their household or bubble. While friends and family may volunteer to help out, it’s best that you keep yourself to yourself.

If you have been notified to self-isolate or have contracted COVID, then you must communicate this to your legal team and us as your estate agent. The government says that if you are legally obliged to move by a certain date, you must notify your conveyancer and ask for the move to be delayed. Once more, flexibility is key.

If you want to know more about the do and the don’ts, even if it is just a simple question, our team at Hamlet Homes Warrington are more than happy to help you.

Don’t take well-meaning advice off unreliable social media posts or from friends – ask the experts instead.

Email us at manoj@hamletwarrington.co.uk or call us on 01925 235 338.

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



Wednesday, 3 February 2021

10% Drop in Warrington Homes ‘For Sale’ in Last 5 Months

With most Warrington families home schooling their children in lockdown and the forthcoming Stamp Duty Holiday deadline on the 31st March 2021, less Warrington properties have been coming onto the Warrington property market since the new year. This has prompted a 10% drop in the supply of Warrington homes for sale compared to September 2020.

For the past couple of decades, like clockwork, Warrington estate agents’ busiest times for putting property onto the market is the new year to Easter rush, with a smaller flurry of new properties coming onto the market in the mid/late summer. Yet, since the ending of lockdown 1.0 in the late spring 2020, nothing has been normal about the Warrington property market.

Throughout the summer, the number of properties coming onto the market in Warrington steadily rose to its peak in September and the number of properties then becoming sold subject to contract (stc) rose even higher (and whilst statistics don’t exist for the properties sold stc, anecdotal evidence suggests there were just under 50% more Warrington properties sold stc in the last six months of 2020, compared to the same 6 months in 2019).

However, back to the number of properties for sale…

The peak of the number of Warrington properties on the market in autumn was 411 – that now stands at 369.

The first lockdown caused many Warrington homeowners to want to move with the need for extra space to work from home and in some cases larger gardens. This was further exacerbated by Warrington home movers also trying to take advantage of the Stamp Duty holiday to save themselves money on this tax.

This meant many more Warrington properties came onto the market (more than a “normal” year) in the last 6 months of 2020. However, those Warrington home movers motivated to move for the extra space/save money on the tax, did so in the summer/autumn and have already placed their Warrington home on the market (and are probably by now sold stc rushing to get their house purchases through before the deadline on the tax savings).

So, how does Warrington compare to other property markets, and what does this reduction in Warrington properties on the market mean to Warrington homeowners and landlords?

There are 18% less properties on the market today in Warrington, compared to 12 months ago.

When I compared that to the national picture, according to Zoopla, there are 12% less properties on the market today (compared to a year ago).

However, the complete opposite is taking place in London. There are currently 47,900 apartments for sale in London compared to January 2020, when there were only 32,600 - a massive rise of 46.9% … all the more interesting when there are only 15.1% more London semi-detached houses for sale and 1.8% more London detached homes over the same 12-month period. The jump in London apartments for sale is being pushed by an upsurge of London up-sizers eager to trade their city living apartment up to suburban houses, and a small handful of panicky London buy to let investors who are wanting to exit the London property market following falling rents for apartments. Looking closer to home, there are…

7% less semi-detached homes for sale in Warrington than a year ago, whilst there are 31% less detached homes.

So, whilst there are some differences between the supply of individual types of property in Warrington (e.g. semi-detached vs detached houses), the overall reduction in the number (i.e. supply) of properties for sale can only mean one thing, when there is a reduction in the supply of anything and demand remains stable, this will mean continued upward pressure on Warrington house prices in the short term.

Will overall demand for Warrington property continue to be stable?

Lockdown 3.0 will probably cause another wave of Warrington people who want to move home (thus increasing demand). The last property crash (the Credit Crunch in 2009) was caused by a huge increase in the supply of properties for sale when people lost their jobs and interest rates were much higher. People couldn’t afford their mortgages and so dumped their homes onto the market all at the same time – causing an oversupply of property for sale and hence house prices dropped.

Compared to the 369 properties for sale in Warrington today, at the height of the Credit Crunch in January 2009, there were an eyewatering 1,011 properties for sale in Warrington

It was this increase in the level of property for sale in Warrington (mirrored across the whole of the UK) that caused property prices to drop between 16% and 19% (depending on the type of property) in Warrington over the 12 to 14 months of the Credit Crunch. So, as long as there is no sudden change in the demand or supply of properties and interest rates remain at their current ultra-low level – the medium-term prospects for the Warrington property market look good.

If you are a Warrington homeowner or a buy to let landlord and want to chat about the future of the Warrington property market – do drop me a line.

To conclude, these are just my personal opinions. If you are a Warrington looking for advice and an opinion on what to buy to maximise your returns, please don’t hesitate to contact me.

If you are a Warrington homeowner, looking to buy or sell and need any advice or opinion on where the market is and where your Warrington home sits in the bigger Warrington property market picture – again feel free to drop me a line.

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






Monday, 25 January 2021

Is it Time to Stamp Out Stamp Duty?


Most people pay Stamp Duty Tax when they buy a property, house, apartment or other land and buildings over a particular price in the UK. The Chancellor, Rishi Sunak, (quickly followed suit by the Welsh and Scottish Governments) announced last July that Stamp Duty was partially being suspended on all English property transactions up to £500,000 (£250,000 in Wales and Scotland) - a Stamp Duty Holiday.

That meant only 1 in 8 English buyers would pay any Stamp Duty Tax on their home purchase (if it was over £500,000), saving any buyer up to £15,000 in tax on the purchase. The problem is the property needs to have been purchased and bought by the 31st March 2021. Complete the transaction a day later, and those buyers will have to pay Stamp Duty.

The issue is local authorities are snowed under with local search requests, mortgage companies and conveyancing staff are working from home, so property transactions are taking much, much longer. This means many Warrington (and UK) buyers who have currently sold (subject to contract) will miss out on the stamp duty saving.

Most (not all) estate agents have been warning the buyers and sellers in their property chains that some deals might not make the 31st March 2021 deadline and pleasingly, most people aren’t moving because of the Stamp Duty Holiday (they are moving because they need extra space because of the pandemic). However, it only takes one person in the chain not to be ‘singing off the same hymn sheet’ for the whole chain to collapse … so keep in touch with your estate agent.

A campaign by one of the national newspapers and an online petition to extend the Stamp Duty Holiday has meant the topic could be debated in Parliament in the next few weeks, after 100,000 home buyers and sellers signed that petition, asking for an additional six-month Stamp Duty Holiday. The home buyers and sellers are worried the property market will collapse after March 31st when the Stamp Duty Holiday is removed.

The last time British home buyers were conscious of upcoming Stamp Duty changes it distorted the number of properties sold. The bigger question though is, did it change the overall number of people moving home?

In November 2015, the then Chancellor, George Osborne, announced in his Autumn Statement that buy to let landlords would have to pay an additional 3% in Stamp Duty (over and above owner occupiers) for all property bought after the 1st April 2016. As shown in the graph below, this caused a surge in property buying (which we have seen since this summer with the Stamp Duty Holiday), with many Warrington buy to let landlords completing their property purchase in March 2016, as they dashed to complete their property purchase before the tax increase.

In the 3 years of 2015/6/7, the average number of Warrington properties sold (transactions) per month was 282 per month, yet in the month before stamp duty was changed in March 2016, transactions rose to 508, an uplift of 80.4% from the average or an extra 226 transactions in that month alone. Yet, look at the months of April and May, the property transaction numbers slumped, meaning in those two months combined, there were 74 less transactions.


 
So, if the Stamp Duty Holiday isn’t extended, what will that mean for the UK and Warrington property market?

London and the South East seem to be particularly exposed to the removal of the Stamp Duty Tax break because it has such a high proportion of property priced between £300,000 and £500,000. These areas benefit from the highest tax savings relative to house price.

Yet, with the average value of a Warrington home at £219,900, the stamp duty cost if the sale is delayed after the 31st March 2021 is £1,898 – a figure that shouldn’t break the bank

So, if the Stamp Duty Holiday isn’t extended – it might not be such the nightmare scenario as some people believe.

My advice to all buyers and sellers is to be constantly talking to your estate agent, your solicitor and your mortgage broker. With your estate agent to ascertain if they have asked every person (or asked the other agents in the chain to ask the question), “What if we don’t meet the stamp duty deadline?” With your mortgage broker and solicitor to give them all the information they need to ensure there are no delays with any information they request from you.

One final thought, some mortgage providers allow insurance policies to be purchased by your solicitor in case your searches (from the local authority aren’t back in time) … the cost of those will be much lower than the cost of the stamp duty .. again, speak with your solicitor. Irrespective of whether you are a client of mine or not, if you would like a chat about anything mentioned in this article, don’t hesitate to contact me.


To conclude, these are just my personal opinions. If you are a Warrington landlord looking for advice and an opinion on what to buy to maximise your returns, please don’t hesitate to contact me. If you are a Warrington homeowner, looking to buy or sell and need any advice or opinion on where the market is and where your Warrington home sits in the bigger Warrington property market picture – again feel free to drop me a line.

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.

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