Wednesday, 23 December 2020

As Unemployment Hits 5.1% in Warrington, What Effect Will This Have On The Warrington Property Market in 2021?


12 months ago, the unemployment rate in Warrington stood at 2.4% of the working population, yet with Coronavirus hitting the UK, what impact will this rise in unemployment have on the Warrington property market?

As I have discussed a number of times in my articles on the Warrington property market, this summer saw the Warrington property market do exactly the opposite of what was expected when Covid hit.

The Stamp Duty holiday added fuel to pent up demand for people to move to property with extra rooms (to work from home) and gardens. This prompted a brief hiatus in the number of people selling and buying their home in Warrington over the last summer and autumn.

Yet, insecurity around rising unemployment, led to many mortgage companies becoming more cautious in the later months of summer, predominantly when lending to the self-employed or first-time buyers borrowing more than 85% of the value of the home (as they wouldn’t want to lend money to someone that could not afford a mortgage due to an insecure income or not having a job.

Back in the late spring, economists were predicting that UK unemployment would rise to a peak of 6.5% in Q3 2020, returning back to the 2019 levels (3.4%) by 2022.

As we speak (Christmas 2020), nationally the unemployment rate stands at 6.3%. The toll Covid has had on people’s livelihoods has been massive, with an additional 1,434,515 people out of work, although it is important to note this unemployment rate is still lower than the five years following the Credit Crunch years - 2008 to 2013.

So, with such a growth in unemployment and the spectre of a ‘No Deal Brexit’, this may hold back the enthusiasm of many companies to take on more staff, reducing any rebound in employment. If unemployment remains high, this will influence perceptions of employment and personal/household financial security, which are the ultimate drivers for both house prices and whether people buy and sell.

3,255 Warrington people were unemployed a year ago,
today that stands at 6,720.

Looking at all the study papers on the topic, there is a link between unemployment and house prices, yet it’s not as strong as you would think. The larger factors are the demand and supply of property on the market and interest rates. Interestingly, in the past two recessions, the comparatively richer regions of London and South East house prices have been more sensitive to unemployment and house price changes than the rest of the UK, yet London and the South East also bounced back quicker and higher after the two recessions.

The concept behind this is that more expensive house prices in the South drop more than lower priced houses in the rest of the UK. Why? Because those more expensive regions have, by definition, more expensive house prices meaning the homeowners have higher mortgages, so if they become unemployed, their homes are more likely to be repossessed (because of the high mortgages), and consequently that reduces house prices in that area quicker because repossessed houses tend to sell much more cheaply compared to normal house sales.

The health of the Warrington property market in 2021 and beyond really depends on what happens to the economy as a whole and more specifically what is happening in the Warrington economy.

When we drill down though, unemployment has hit different sectors of the economy to a lesser or greater extent. For example, for office workers, people who work in tech & sciences and the professional services, the impact on jobs has been comparatively mild, with many personnel able to work from home. Yet for others, such as those who work in the hospitality, leisure, retail, entertainment and catering industry, remote working is simply not an option and these have been hit the hardest.

Unfortunately, the industries mentioned above are the ones that tend to employ the younger generation, who invariably live in private rented accommodation, rather than own their own home. Being made redundant puts their dream of buying their first home back even further as they try and get themselves back on their feet by initially finding a job (let alone save for a deposit).

Housing markets will recover quickest in towns and cities, where jobs are in more resilient employment sectors.

For example, in London, unemployment jumped really quickly (and high) in 2009 with the Credit Crunch, yet came down just as quick in 2011, just as the property market in London started to take off, whilst in Warrington, it took a lot longer for unemployment to drop and the Warrington property market didn’t really start to get going until 2013/4.

If we have a determined economic contraction, with a lengthier and leisurely economic recovery, impeded by financial stress, that will lead to much higher unemployment in the 10% to 12% range in the summer of 2021. However, before I get to the initial question, I need to highlight another interesting fact, because …

what is particularly interesting is the increase in unemployment in Warrington amongst men has been higher than women, with a growth of 3.2 percentage points for men compared to 2.1 percentage points with women.

So, what is the prediction for the Warrington property market under the cloud of this growth in unemployment?

One massive redeeming factor that could just save the Warrington property market is low interest rates. This will keep mortgage payments low, meaning repossessions should be kept to a minimum (therefore there shouldn’t be a flood of cheaply priced Warrington properties coming onto the market all at the same time and dragging Warrington house prices down with it, as it did in the previous two recessions of 2009 and 1989).

Yet, irrespective of the ultra-low interest rates, I still consider property prices in Warrington at Christmas 2021 won’t be much different from today, and in fact could be slightly lower.

This is because people have been paying top dollar in the last six months to secure their dream Warrington home, quite often spending the money they saved on Stamp Duty on the purchase price. When Stamp Duty Tax returns in April 2021 there will be less money to pay for the property ... thus Warrington property values will be, by implication, lower in a year’s time.

What about Warrington landlords and the rents?

Nationally, rents fell just over 2.3% between 2008 and 2010, following the Credit Crunch, while national house prices fell 15.9%. I anticipate Warrington rents will also remain comparatively robust in the coming months and years.

Rents are very much tied to the rise and fall of wage growth and I can’t see why this relationship shouldn’t continue. Rents will rise in Warrington by between 13% and 15% in the next five years, yet if property prices do rise in 2023/24, that means future rental yields will be marginally lower in 2023/4 comparative to today, especially as ultra-low interest rate expectations (according to the money markets) seem to be here to stay for a long time.

Therefore, something tells me there could be some interesting Warrington buy-to-let investment opportunities for Warrington investors willing to play the Warrington buy-to-let market for the long term.

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.

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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Friday, 18 December 2020

What are House Moving Costs?




If you’ve been thinking about buying a house in Warrington, you’ll be daydreaming about how many bedrooms you need, what the garden is like or if it’s in the right school catchment area and has a garage.

These are all important factors when deciding on a new home, and it’s probably the case that the emotional heart will rule.

But, sit back and work out the financial implications of moving house – it may be the head rather than the heart in this case, but it’s important as you plan the next chapter in your life.

Here at Hamlet Homes Warrington we have the expertise to take you through some of the critical factors when thinking about the money side of moving house in Warrington.

The Legal Fees

Aside from the actual cost of the house and the mortgage repayments, one of the first things to do is think about the legal fees. Conveyancing companies and solicitors are the ones who focus on property. Many have almost instant conveyancing quotes on their website. You will need to key in basic financial figures, and they’ll tell you roughly how much it will cost in legal fees.

They will also look at searches that will be needed, such as local authority searches, existing planning permissions and specific things such as mining reports and building regulations. Your legal people should also highlight other costs such as the Land Registry fee which comes in when the property is registered in your name.

Estate Agent Costs

If you’re selling your house, then your estate agents’ costs will need to be factored in. The fee varies, depending on the level of service that will be delivered to you or whether you choose an internet-based agent, but you can expect to pay between one per cent and three per cent of the sale price plus VAT which is 20 per cent. Call us on 01925 235 338 for our competitive fees.

Removal Companies

The chances are that you will need a removal company to help you, particularly with the big items. The cost of this will vary because companies will calculate such things as how many bedrooms, the distance between houses, and whether specialist services are required. It could be as little as £400 to well over £1,000. Our advice is that you decide precisely what you need and then shop around to get quotes and see what the customer service is like. Have a look at online review sites too as these could give you a good indication of how good a company is.

Stamp Duty


If you buy a property or land in England that’s over a certain price, you have to pay Stamp Duty. How much you pay depends on several factors, but you should expect to pay a certain percentage of the value of the property. For example, a £255,000 property would mean a Stamp Duty payable of £2,750. There are a number of websites that offer a Stamp Duty Calculator, and the Government website (www.gov.uk) will tell you what it’s all about. If you need help, we’ll help you work out how much to “set aside”.

Mortgage Fees


Most people will have to obtain a mortgage to buy a house. Rates and payments will vary depending on the lender, but there are a number of typical costs associated with a mortgage. There will be booking fees and arrangement fees, and because the lender will need to know the value of a property, you’ll need to arrange for an independent valuation too. Booking fees can be between £150 and £300, arrangement fees might be around £2,000, and a mortgage valuation fee could be anywhere between £150 and £1,500 depending on the lender and the property. It’s worth noting that low rates might not mean low fees, so be careful to look at the details.

Insurance


When you’ve completed, chances are you’ll quickly get the keys. It’s an exciting time, and you’ll have packed everything, the removal van will be ready, and you probably can’t wait to get in. Something you need to do straight away though is the insurance. Once the property is yours, it needs to be insured. You’ll need buildings insurance to cover the bricks and mortar, and contents insurance too as this will cover your belongings and possessions. The cost of this will vary because no two properties are the same, and you will have different possessions. The key is to do your research and get everything in place before the day, and then it should be a case of pressing the button.

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. 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

Wednesday, 16 December 2020

No Deal Brexit – The Prediction for Warrington House Prices



Roll the clock back to April 2020, and major financial economists and property market commenters were sounding the alarm. The very best-case scenario was a 5% drop in property values by the end of the year, and most were in the 10% to 15% range. They forewarned the Covid-19 stimulated recession would trim tens of thousands of pounds off the value of Warrington homes.

Yet the Warrington property market seemed not to get the memo on that, and now as we find ourselves at the end of 2020 and the worst of lockdown restrictions appear to be passed, vaccinations on the way and economy starting to grow, Warrington property prices seem to be doing quite well.

What happened to the Warrington house price crash that wasn't?

Before I answer that, it reminded me of what the Treasury said in 2016 about a leave vote on the Brexit referendum. The considered opinion of the Treasury was house prices would drop by 18% if the country voted to leave the EU, so let us see what that would have done to Warrington house prices if that had taken place and then what exactly has happened in the last four and half years …

 

Average Value
2016

Predicted Drop by
The Treasury because
of Brexit

Average Value
Today

Uplift in Value
in Last 4.5 Years

% Increase since
Brexit Vote

Warrington
Detached

£322,100

£264,100

£343,200

£21,100

7.6%

Warrington
Semi

£171,100

£140,300

£201,200

£30,100

16.6%

Warrington
Terraced / Town House

£120,600

£98,900

£146,600

£26,000

22.5%

Warrington
Apartments

£117,500

£96,400

£138,300

£20,800

16.7%



So why has the Warrington property market not matched the property pundits twice in the last five years or so?

Well for most of us, owning a property is about having somewhere to live rather than an investment (an Englishman’s home is his castle??). Nevertheless, once a homeowner is on the proverbial ‘property ladder’, it cannot be denied that it is eternally beneficial to know, as a homeowner, that you have made a healthy investment in your home and that the value will rise to alleviate the ache of trading up market — or down market when you retire.

Those Warrington homeowners who own semi-detached homes would have made an average of £30,100 profit, a rise of 16.6% or a weekly profit of £115.77 — calculated between the price they would have paid in the summer of 2016 and the price they would sell for today. Looking at the weekly profit for all property types in Warrington since the Brexit vote …
  • Warrington detached homes weekly profit of £81.15 per week
  • Warrington semi-detached homes weekly profit of £115.77 per week
  • Warrington terraced homes/town houses weekly profit of £100.00 per week
  • Warrington apartments weekly profit of £80.00 per week
Whilst it is no surprise the property market boom was inspired by the Chancellor’s Stamp Duty holiday, this is not exclusively the Chancellor’s achievement. The three ‘D’s have been with us throughout 2020, Covid or no Covid (Debt, Divorce and Death), together with a huge shift in the way Warrington homeowners see their homes. With us cooped up during the lockdown and working from our dining room tables, the want and need of Warrington people to have a home with an extra bedroom to work from, together with a garden has been one of the most challenging this year… hence the rise in demand.

So, what of 2021? It’s true that the country will have high unemployment, yet at the same time, we have ultra-low interest rates and for the last 20 years, on average we have only built 150,000 households per year as a nation, but needed 300,000 per year to keep up with immigration, people living longer and changes in the way households are made up (compared to the Millennium).

Many people can predict what will happen – yet none of us really know what will actually happen to the Warrington property market in 2021.

Covid was a black swan event and the fallout from that, I believe, has changed Warrington peoples' lives and their lifestyles, especially how they see their home. Instead of making predictions, nothing can get away from property market fundamentals, which have driven price booms on the back of high demand for homes and low supply (i.e. properties coming onto the market) and price crashes on the back of over-supply and low demand. Only time will tell if, in 2021 the Warrington property market will see a flood of properties coming to the market because of debt or the demand for larger homes continues to rise unabated.

Please do let me know your thoughts on the matter.



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, 11 December 2020

Will the Warrington Property Market Crash in 2021?


In the last few months, the Warrington (and UK) property market has resisted and flouted every economist’s prediction. With the economy a shadow of its former self, unemployment set to hit 11.9%, the Government on track to borrow nearly half a trillion pounds to pay for Coronavirus support packages etc., all of this has had no effect on Warrington homeowner’s enthusiasm or capability to want to move home. It highlights the influence of both the emotional impact of lockdown and the enticing appeal of saving thousands of pounds on your Stamp Duty Tax bill.

For the last few months, the Warrington property market has been akin to a surfer, riding an unexpectedly large wave. The question is, will the surfer crash down (i.e. the property market) into the rocks or will it calmly arrive at the beach unscathed? Well looking at house prices firstly…

UK house prices are 4.7% higher than they were 12 months ago according to the Land Registry, whilst in Warrington they are 3.1% higher

Looking at the data over the country, things overall are looking good for property prices. Yet it must be remembered the Land Registry data is on completed house sales and is always a couple of months behind, so this data is for house sales up to September that were agreed in the spring. Also, it does not take into account the prices being paid today on Warrington homes (as they will only show in statistics the Spring and Summer of 2021 when the sale completes).

Warrington house prices will inevitably ease in 2021

Anecdotal evidence over the last few months has suggested buyers are using their Stamp Duty savings on the price they are prepared to pay for the Warrington home of their dreams, so when the Stamp Duty holiday finishes in Spring 2021, we will see a reduction in the price Warrington properties sell for, as buyers will now have to hold back some of their cash to pay the Stamp Duty Tax.

Mortgage approvals at a 13 year high

A better statistic to judge the property market by are the number of mortgage approvals. As the vast majority of house buyers need a mortgage, that is another good place to look at the numbers as they are much more up to date than the Land Registry figures. The Bank of England recently stated 97,500 mortgages were approved last month, up from the long-term average of just over 65,400 per month. This was the highest number of mortgage approvals since September 2007, and a whole third higher than mortgage approvals in February 2020 when we had the Boris Bounce in the property market.

As a country, we are due to smash through 2019’s 524,000 total number of mortgage approvals this month, despite the fact that the property market was closed for nearly three months in the spring. It’s vital to remember, that mortgage approvals do not equate to people moving home, as many of you reading this can attest to … property sales do fall through.

I do have apprehensions that many Warrington people, buying and selling their Warrington homes and in a chain, may not be able to realise the move before the Stamp Duty rules change at the end of March 2021, as there is a massive backlog with mortgage lenders, local authorities’ and the searches, chartered surveyors surveying the property and solicitors with the legal work, all combining to slow down the house selling and buying machine.

If you are in chain at the moment, you must constantly be talking to all the parties involved and ensuring everything is focused on getting the sale complete by the end of March. You have a responsibility to get information requested back in hours, not weeks... because if you don’t, you might not get your Warrington home move through before the end of the stamp duty holiday, and without that discount, someone in your chain may pull out of the sale altogether and the chain will break.

The number of people moving home in Warrington is anticipated to
drop sharply after the Stamp Duty holiday ends at the end of March 2021

And that is probably going to be the biggest impact on the Warrington property market in 2021. Yes, there will be a slight readjustment in the prices paid after March 2021 (as mentioned above), yet a reduction in the number of people selling their Warrington home does not inevitably lead to a house price crash.

Yes, there will be a number of people who have to sell in 2021 because they have lost their jobs (i.e. ‘forced sales’). In the last two ‘Property Market Crashes’ of 1988 and 2008, there were a large number of forced sales in a short period of time (because business owners had to sell their home as their business had gone bankrupt because of the Credit Crunch, as well as people who had lost their job), increasing the supply of properties coming to the market in 1988 and 2008.

This in turn pushed Warrington house prices down as the property market was flooded with lots of property to sell in a short period of time. Yet this time, we have had the cushion/parachute of Bounce Back Loans, Furlough and Mortgage Holidays over the last 9 months.

Also, another important factor about the last property market crashes were the levels of interest rates and the amount borrowed.

Interest Rates are the key to the future
of the Warrington property market

In 1988, mortgage interest rates were an eye watering 11.5% and 6% in 2008, meaning mortgages were much more expensive compared to the 0.1% rate we have today. Also, with 77.2% of mortgagees with fixed rate mortgages, and only 1 in 21 mortgages owing more than 90% of the value of their home (and 1 in 303 mortgagees owing more than 95% of the value of their home), negative equity should not be so much an issue like it was in 1988.

This means most Warrington homeowners are in a much better place to weather the storm of 2021, than they were in 1988 and 2008

I foresee many Warrington sellers will simply wait until activity in the Warrington property market picks up again before placing their property on to the market. This means fewer properties will be placed onto the market for sale in the later part of 2021, meaning Warrington house prices will tend to hold up. The people that will be affected by less properties coming onto the market will be estate agents, solicitors and home removals people.

I also believe there will be ‘interesting investment opportunities’ to be had for Warrington buy to let in the latter half of 2021 with the potential changes in Capital Gains Tax regulations, although those won’t go on the open market, so do keep your ear to the ground and build relationships with all the letting agents in Warrington so you get to hear of the property portfolios coming up for sale (as they tend to sell ‘off market’). Again, if that’s something that interests you - do drop me a line.

So, where is the Warrington property market heading in 2021?

Well, the Warrington property market (aka our “surfer”) has seen a house price growth of 37.8% since 2009 … and this has been fuelled on the back of…

1. Ultra-low interest rates mean money is cheap to borrow and so mortgage payments are low. With the Bank of England pumping £150bn into the economy in November with Quantitative Easing (QE) to add to the £725bn they have already spent on QE since 2009 – interest rates will continue to stay low for some time.

2. There has been an increased demand for housing with annual net migration of 214,400 since 2009 (meaning 96,700 additional households per year have been required since 2009 just to house those people – a total of 1,063,700 households).

3. The average age of death has risen by 2.1 years since 2008 in the UK. People living longer delays property from being released back onto the property ladder. For every extra year of life the average Brit lives, an extra 290,850 households are required in the UK.

None of these things have changed because of Covid.

As a country, we have only built on average 165,100 homes a year since 2009. Supply and demand shows that whilst we will probably have a turbulent choppy ride on the 2021 wave (because of the economy) our surfer (aka the property market), with long term demand for housing outstripping supply since the 1980’s, will continue to ride the wave (probably not as large as it has been in 2020) as the ultimate long-term outlook for the property market in Warrington looks good.

All this means demand for decent, private rented Warrington property will be good as long as the property ticks all the boxes of the tenants. If you are a Warrington landlord, whether you are a client of mine or not, feel free to drop me a line to pick my brain on the future of the buy to let market in Warrington.

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

Choosing an Estate Agent in Warrington

                                 

Congratulations on your decision to search for a new home in Warrington. This is an exciting time for you and now is the right moment to consider two highly important elements to make sure you locate and purchase your dream property without hassle or stress.

Right now, you may be in the position of not knowing where or how to start your search, or even what to look at first, and that’s where we come in! Here at Hamlet Homes Warrington we are experts in property searches in Warrington and have plenty of useful tips to help you through the process.

Trust the Professionals

First and most importantly, you should always enlist the help of a professional estate agent to help you in your property search. Yes, of course we are biased, but trust us, a knowledgeable, local estate agent will save you hours of time, not only during your initial search, but also when it comes to viewing suitable properties, making an offer and negotiating a deal, right through to exchange and completion.

It’s important you choose a reputable estate agent that you like and trust, that you understand the service offered and are happy with their contract terms and fees.

In fact, the ideal estate agent is not always the one with the most sales under their belt, or the one with the most years in business. The ideal agent is the one who listens to you, is easy to get along with, is interested in your requirements and has the tools and skills to address your unique situation.

Professional expertise is of course important when choosing your estate agent, but interpersonal skills are equally important. After all, you’ll be working together for anywhere between 2 to 12 months, so it helps to get along! We all have unique personalities, and that’s the way it should be. But when working with someone professionally, if helps if their personality fits well with your own.

At Hamlet Homes Warrington we understand that every home buyer is unique and brings a different set of circumstances to the table. We pride ourselves on our customer service and are a friendly bunch with many years of experience under our belts so when you choose us to help you buy or sell your home in Warrington you can be certain of excellent service.

However, before you get carried away with deciding how many bedrooms you need, or the colour you will paint your sitting room, or which location you prefer, the second aspect you must consider and assess is your financial situation, as it’s likely that to fund the purchase of your new home, you will require a mortgage.

Here at Hamlet Homes Warrington we will also be happy to recommend financial service providers in Warrington who can help you with this aspect of your property journey.

Review your Financials

The financial part is the most important one. This will involve working with a professional who will check your credit score, look at your monthly income, your proof of employment, the deposit you have available and will ensure you have funds available to pay for fees and expenses at the close of the transaction.

As reputable and professional estate agents, our staff at Hamlet Homes Warrington are trained to assist you through this financial process where needed.

Alongside financial assistance, our staff will look closely at your property needs and establish your criteria. We will then search for properties that match your needs in Warrington and surrounding areas and make a shortlist of all those that fit your requirements.

Accompanied viewings are standard allowing you to take your time when viewing properties with no pressure, and a negotiator will always be on hand to answer any questions you have about the property or indeed the local area.

The easiest move you will make

Our staff are knowledgeable, friendly and professional and will endeavour to ensure buying a property in Warrington is the most stress free move you will ever make!

Working with a reputable estate agent will save you time and is the absolute best way to find the perfect property for you. We will always negotiate the best deal and make sure you are kept updated via our sales progression team all the way through to exchange and completion.

Contact us today on 01925 235 338 for an informal chat or call into our office and discover how we can help you, whether you are buying or selling your home in Warrington. We will be delighted to meet 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




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
Hamlet Homes Estate Agents Warrington Facebook Page
Hamlet Homes Estate Agents Warrington Twitter Page


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