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
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 25 November 2020

The 2020 Review of the Warrington Property Market


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

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

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

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

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

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

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

 

Average Overall Value Today

Average Price Paid in the Last Year

Warrington Detached

£350,160

£329,620

Warrington Semi-Detached

£199,230

£196,080

Warrington Town House / Terraced

£142,240

£143,870

Warrington Apartments/ Flats

£140,390

£118,150


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

Average Value per sq. ft (internal)

Warrington Detached

£215.82

Warrington Semi-Detached

£196.73

Warrington Town House / Terraced

£153.26

Warrington Apartments/ Flats

£173.85



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

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

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

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

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

Friday 20 November 2020

10 Frequently Asked Questions When Selling Your Home in Warrington!


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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
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 18 November 2020

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



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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Friday 13 November 2020

7 Tips to Increase the Value of Your Home in Warrington


Increasing the value of your home in Warrington is a smart way to go further with your investment. Even if housing prices naturally increase in the area as it develops, renovating and improving your Warrington home will boost its value even further. Between improving its aesthetics for yourself, and increasing the financial value for when you sell, here at Hamlet Homes Warrington we want to share with you our top seven tips to get you there!


1. Keep your property in good repair

Regularly deep clean your property, stay on top of any mould and damp, and generally aim to fix any issues as they arise. This will keep your home in great condition and help you spread out the cost of maintenance. In return, you won’t have to heavily negotiate on the price of your home when the time comes to sell, or risk it being actually unsellable because a small issue became a big issue simply because it wasn’t handled at the time.

2. Install and nurture front and rear gardens

Front and rear gardens are a great way to improve the overall look of your property, and almost 1 in 5 buyers want these features. As a bonus, you’ll have a project that will keep you fit, out amongst the nature, have a beautiful home, and a lovely place to sit!

Tip: Many people today are looking to live more sustainably. Having beautiful gardens is a great way to start, as it offers a breath of fresh air even in the density of a city. To really appeal to these buyers, however, consider investing in a kitchen garden. Something that can be easily maintained, such as a wall of herbs, for example as this can really help sell your home.

3. Add character features to your property

Far too often, beautiful character features get removed, so consider adding them in! Change lighting fixtures and fittings to options you find characterful or quirky, replace flooring to incorporate hardwood, add mouldings, beams and even an open fire or log burner. These character features add to the beauty of your home and can become a true selling point later on. At the very least, these character features will help your property stand out against the others in your area and make it easier to sell your property quickly.

4. Improve your home energy efficiency

In terms of adding value to both the sale price and your wallet now, improving your property’s energy efficiency is key. This means replacing windows if they are not double glazed – or if they are very old, as double glazing loses its efficiency over time – it means insulating your home and changing the main doors so that they are better sealed. It could also mean investing in a new heating system. Central heating is a popular option, but there are many alternative means to heat a home that are even more efficient. If you get these changes done early, you can lower the cost of your utilities, and boost the value of your home.

5. Add a bedroom

Adding a bedroom will instantly put your property into the next price bracket. A two-bedroom home will never sell for as much as a three-bedroom home, and if you have a sizeable loft you have the perfect opportunity to convert it. For even better results, add an ensuite!

Tip: Adding a home office or a playroom can be just as lucrative as adding a bedroom and can be done at a much lower cost. Add a rear extension to your property and use that extra space to make room for a downstairs office or child-friendly zone. With the rise of remote working, both of these options will appeal to working professionals and parents.

6. Renovate the bathrooms

Modern bathrooms can look fantastic and help you feel like you have a spa in your own home! They can also increase the value of your property. Bathroom remodels are one of the top renovations that buyers and homeowners want done for their property, and new technology and materials are better than ever at keeping the room sealed and your home free of damp.

7. Renovate the kitchen

Kitchen styles come and go, and chances are the kitchen you inherited when you bought the house is not to your standards or tastes. Renovate with timelessness in mind and remember to ensure your kitchen’s value is in line with your property’s value. A successful kitchen renovation can boost the value of your home significantly, but make sure you stay within your budget so that you see the value back.

For expert advice on increasing the value of your home in Warrington, contact the team at Hamlet Homes Warrington on 01925 235 338 today.

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 11 November 2020

Each Warrington Landlord Could be Hit by a £23,562 Bill


With the second lockdown starting on the 5th November 2020, does this mean Warrington landlords can wave goodbye to their Warrington buy-to-let investment and see it go up in smoke on the bonfire of buy-to-let dreams, like a Guy Fawkes puppet?

With many Warrington tenants at risk of losing their jobs after the furlough scheme ends in March and as the reverberations of the coronavirus recession hit this winter, what does this all mean for Warrington landlords and what can they do to mitigate the risks?

Since the spring, most Warrington tenants and buy-to-let landlords have been protected from the coronavirus crisis thanks to the banks with their mortgage payment holidays and job support schemes.

Before the second lockdown was announced on the 31st October, it was expected that as the furlough and mortgage payment holidays were due to end on Halloween, there would be some serious fallout from those schemes finishing. One silver lining from the lockdown (if you can call it that) is that mortgage payment holidays and furlough have been extended, yet does all that just kick the can down the road?

The question is, what can Warrington landlords do to mitigate the financial risk on their Warrington buy-to-let investment?

1. Help Your Warrington Tenants get the Financial Support They are Entitled To

Billions of pounds are being spent by the Government to help those people whose income has been hit by coronavirus. The better Warrington letting agents and self-managing landlords are supporting, guiding and helping those Warrington tenants in financial difficulty to gain a better understanding of the Universal Credit (UC) processes, systems and payment levels, to enable their tenants to pay the rent and ultimately indirectly help their Warrington landlord. Also, if you are a Warrington tenant, and that support isn’t given when you ask, don’t forget Warrington Borough Council do hold special cash reserves for discretionary housing payments, which can be utilised to close the gap in rent between what UC pays and your current rental commitments. Also, the Government’s Money Advice Service & Citizens Advice are a good online resource for what you are entitled to.


2. Adopting, Adapting & Improving Your Warrington Buy-to-Let Property

Demand for gardens or office space means Warrington landlords will need to think outside the box. Those Warrington homes with tenants sharing (e.g. HMO’s and shared houses) might need to price their pre-coronavirus 4 bed sharing house to maybe a 3 bed sharing house plus a work/office room and, if you haven’t already, installing a top of the range, fast and dependable internet connection could be the thing that swings it. Outdoor space and gardens are really high on housebound tenant’s wish lists, in fact I have come across some Warrington tenants demanding that new rental properties have a landscaped garden or those that bought a dog or cat for company during the first lockdown, are looking for their landlords to relax their ‘no pets policy’.


3. Hold On to Your Good Warrington Tenants

Those Warrington buy-to-let landlords with decent tenants, who find themselves in financial dire straits should consider attempting to keep them, even if their own monetary circumstances mean they have to decrease their rent somewhat over the short term. Now of course, I would expect that tenants need to prove their circumstances, yet if their plight was real, surely it would be a wise choice to reduce the rent by perhaps £50 a month and support your tenants? You know they are taking great care of your Warrington rental property and rather than risk the issue of advertising your empty buy-to-let property – particularly when there is no assurance you will achieve your existing rent and ultimately risk drawn-out void periods with no rent coming in at all. What I would suggest therefore, in such circumstances, is that you create a new Assured Shorthold Tenancy agreement with a longer term with your existing tenant at a lower rent – a temporary measure but with peace of mind for both parties which can then be reviewed once that tenancy is up for renewal.


4. Carry out Firmer Checks on Your Prospective Warrington Tenants

Many private Warrington landlords and a few slipshod Warrington letting agents tenant checks are somewhat lacking in their depth. Trust me, there is tenant referencing … and then there is ‘proper’ forensic tenant referencing. As certain parts of the British economy have been hit harder than others, Warrington landlords must consider when choosing their new tenants, the type of work they do or who their employer may be, to enable them to decide on their future capacity to meet their rental commitments.


5. Rent Guarantee Insurance for your Warrington Rental

There are still insurance companies offering landlord rent guarantee insurance if your tenants become unable to pay the rent. Many insurance firms removed these insurance products in the first lockdown, yet some have returned to the insurance market although insurance premiums have gone up in price. Remember to check the small print of the insurance, although you will get a lower insurance premium if you can show stringent tenant referencing (as per the previous point).


The Nuclear Option – Eviction

Warrington landlords need to be conscious that, should their tenancy run into trouble, the Government have changed the rules when it comes to eviction during the coronavirus pandemic. Going into the first lockdown, there was already a backlog in the courts and now, just before going into the second lockdown, bailiffs have been instructed not to enter rental properties in high risk Tier-2 and Tier-3 Covid-19 areas.

Eviction really does have to be the very last option. Negotiation or arbitration will nearly always deliver quicker and improved outcomes for both parties. Warrington landlords who do come to mutually agreeable arrangements with their tenants by briefly reducing the rent, or allowing payment holidays with legally enforceable pay back schedules should ensure they get the agreed terms in writing and run by a solicitor or their agent (feel free to drop me a note if you need advice).

However, if eviction is required, it doesn’t mean the tenant gets off ‘scot free’. Evicted tenants, depending on their circumstances, will either be placed temporarily into an inexpensive B&B, asked to move in with family or given one of the local authorities temporary accommodation properties, with the goal to then move them into long term council accommodation (as the chances of obtaining private rented accommodation would be slim with agent’s heightened reference checks – more of that at the end).

The Potential Cost of Evicting a Problem Warrington Tenant

The average rent for a Warrington property currently stands at £638 per calendar month.

Thankfully, evictions are very rare. Last year before lockdown, tenants from 201.4 rental properties were evicted each working day in the UK ... but if yours was one of those, that is still a potentially large cost.

Working on the basis that most evictions from the first rent not being paid, through to eviction, refurbishment of the kitchen, bathroom, carpets and décor (because often these do need sorting/replacing) were taking on average between eight to nine months before coronavirus hit, (plus the mortgage payments), this means a Warrington landlord could be hit by a £23,562 bill, broken down as follows:

Missing rent (8½ months)

£5,423

New kitchen

£3,818

Bathroom

£2,428

Carpets

£2,027

Redecorate

£2,163

Agents fees

£569

Legal fees & court fees

£3,500

Mortgage payments

£3,633

Total

£23,562

What that would be now is anyone’s guess – yet it could be a lot more.

This is why it is so important to get the best tenant from day one. Many Warrington tenants, who know they wouldn’t pass the references of letting agents, are attracted to those private landlords who don’t use a letting agency, as they know their referencing checks are not as strict and may be a softer touch. That’s not to say going with a letting agent is a guarantee you won’t need to evict; it just means the chances are much, much smaller. Like anything in life - it’s a choice.

Whether you are a Warrington landlord who uses a letting agent or not, and feels their reference checks are not to the standard or level you might hope or want and you need a chat about the best rental guarantee insurance, then give me a call ... what have you got 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

Thursday 5 November 2020

5 Ways To Add Value To Your Warrington Property


For homeowners in Warrington looking to add value to their property, house extensions and renovations are pretty much guaranteed to do the job.

But what if you’re a homeowner without the time and/or budget to invest in a full-blown extension?

We often get landlords asking us this very question: how can I add value to my property with minimal effort and a limited budget? So, the team at Hamlet Homes Warrington have put our heads together and come up with seven easy ways to do just that.

Here’s how to increase your property value in Warrington without breaking the bank or investing too much time:

1. Start by focusing on your kitchen
The kitchen is known as the ‘heart of the home’ for a reason. It’s the room we all tend to spend the most time in when we’re at home. This is why potential buyers value it so much. If your budget only stretches to one single property improvement, make it the kitchen. A great kitchen can add as much as 4% to the value of your home, and a dated kitchen can easily turn buyers off.

Here are some easy kitchen improvement ideas that can add value:

  • Invest in modern worktop surfaces – check out Pinterest for some kitchen worktop inspiration
  • Get new kitchen tiles – be bold and opt for a few more striking patterned tiles to create a statement backsplash
  • Paint your cupboard doors
  • Swap the cupboard door knobs for quirky ones

Yes, they’re all small changes. But together, they can really help to spruce up a tired looking kitchen!

2. Add more storage space
Never underestimate the appeal of lots of storage space for home buyers.

This is the one thing that we notice time and time again – buyers can easily be turned off a property if they discover that there just isn’t enough storage space.

So, how do you deal with this issue if you simply haven’t got the space?

Here’s how to add extra storage to your Warrington home when space (and budget) is limited:

  • Make use of all that space on blank walls by building shelves. Shelves are much easier to put up than you might think!
  • Work out what you can do with any unused nooks and crannies. For instance, the dead space underneath your stairs. Could you add a cupboard there?
  • No idea where you can add extra storage and exhausted all your options? Study the layout of your property layout, and you may just discover dead space you didn’t even realise existed.

3. Make your home more energy efficient
In this eco-conscious day and age, more and more home buyers are interested in finding out how energy efficient a property is before they invest in it. This doesn’t just stem out of concern for the environment though. An energy-efficient home can also save you a considerable amount on energy bills.

Landlords, make your home more energy-efficient and you’ll instantly make your property more appealing to many renters. Here’s how:

  • Make sure all windows and doors are double glazed for effective insulation
  • Invest in a heating system with easily adjustable settings so that comfortable temperatures won’t mean racking up bills
  • Choose an eco-friendly paint brand for any decorating jobs
  • Invest in LED lights and solar panel heating

These improvements come at a cost, but they’ll benefit your wallet, and our planet, in the long term.

4. Create a more open-plan home
Working with a smaller property? Create the illusion of more space by knocking down a few walls. Do this effectively, and you could boost the value of your Warrington property without any extensions. Modern buyers are attracted to open-plan layouts, which can make a smaller flat or house look more spacious and make it easier for them to move around.

Don’t attempt this yourself though. We recommend consulting a local residential architect who can show you how to do this to maximise the space in your property.

5. Find out what home movers in the Warrington area are looking for
Not quite sure where to start? Have a chat with our team at Hamlet Homes Warrington as we know your area! We have a good understanding of what home movers in your neighbourhood are interested in.

We can also help with recommendations of local suppliers that can offer you great deals on any small renovations and extensions that can add value.

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 4 November 2020

What will happen to the value of your Warrington home in 2021?


What will a no deal Brexit on the horizon, the end of the stamp duty holiday in March, mortgage payment holidays coming to an end, unemployment set to rise after furlough and ongoing on/off coronavirus restrictions do to the Warrington property market and the value of your Warrington home?

In the late spring of 2020, every man and his dog were forecasting impending doom on the British property market. Drops of 10% were considered optimistic as we all held our breath after lockdown was relaxed. Yet, the property market didn’t listen to the forecasters. UK property values today are 2.5% higher than they were a year ago, and more locally,

Warrington house prices are 3.4% higher than a year ago.

So, what exactly is going to happen to the Warrington property market in 2021?

Well, with the end of furlough and 1.7m people still on the furlough scheme at the start of October, a number of economists are saying that unfortunately many of those furloughed will become unemployed. Unemployment currently stands at 4.5% in Q3 2020 (compared to 3.8% in Q3 2019). The Government’s independent Office for Budget Responsibility believes the unemployment rate will peak at 9.7% in early 2021, and then return to pre-coronavirus levels in 2022. In the past recessions of the early 1980’s, early 1990’s and Credit Crunch of 2009, when unemployment went up, the property market went down.

Yet, in this recession, the link between unemployment and property values may not be so direct.

So why is the link between unemployment and house prices potentially broken? It comes down to interest rates.

The reason Warrington house prices have gone up by 279.63% since the middle of the 1990’s isn’t because the labour market has got so much sturdier, nor that the economy has outperformed every G8 country, or that the UK has had less boom and bust economic cycles than the previous decades. Instead, it’s because of the fundamental and underlying decline in the Bank of England (BoE) interest rates.

High BoE interest rates equal high mortgage payments which holds everything back regarding the property market. In the 1980’s, the average BoE interest rate was just over 11%, making mortgage payments very expensive and keeping property prices dampened. In the 1990’s, the average BoE interest rate was a little over 6%, in the 2000’s just over 4%. However, in the 2010’s, it had been a really low 0.5%. Now with interest rates down to 0.1% because of coronavirus and the BoE threatening negative interest rates, there appears little threat of an eruption in mortgage repayment costs.

With mortgage payments at an all-time low of just under 30% homeowners' disposable income (compared to 48% in 2007), those middle-aged people lucky enough to still be in a job (who are mainly made up of workers whom are spending a lot more time working from home), they could be more inclined to dedicate more of their monthly income to mortgage payments than they did pre-coronavirus for a bigger garden or a move out of the big cities?

So, if unemployment isn’t going to make a huge difference to the Warrington property market, what is?

Most commentators believe a no deal Brexit will have hardly any short-term effect on the property market (apart from certain upmarket parts of central London).

The Stamp Duty holiday ends at the end of March 2021 and that certainly will reduce the number of Warrington people moving (as many moved their plans forward to beat the deadline) meaning there will be less Warrington people moving in 2021, yet that will curtail the supply of property for sale and hence keep Warrington property prices higher.

Next, the Help to Buy scheme, (started in 2013 and where the Government underwrites part of the mortgage for the first time buyer, meaning they can obtain a 95% mortgage) ends in April next year, yet the Tories indicated at their conference last month they would probably create ‘Help to Buy - Part 2’.

The bottom line is in the early 1980’s and 1990’s recessions, when interest rates were over 15%, obviously homeowners couldn’t afford to keep up the mortgage payments when made redundant or on reduced wages, so many handed in their keys to the banks and homes got repossessed, thus exacerbating the issue with falling property values.

However, with interest rates so low, this will not be the case. I envisage that UK property prices will be between 4% to 5% higher by December and Warrington values just behind that at 2% to 3% higher, before levelling out in 2021 (although we might see a modest dip in certain sectors and types of Warrington homes depending on location and condition).

My advice to Warrington buy to let landlords is to wait on the subs bench until April 2021. Something tells me there will be some Warrington landlords who will be looking to exit the rental market after having their fingers burnt after the eviction ban has been lifted.

I also suspect those Warrington first time buyers, eager (and able) to break free the rental-rat-race will want to take up the anticipated ‘Help to Buy - Part 2’ scheme, particularly if the BoE base rate stays low. The other winners in 2021 will be low mortgage/equity rich households upsizing to the countryside or leafy suburbs to test out their boss’s promise of ‘flexible-working’.

Yet the losers will be the 18yo to 29yo renters … most likely to be made redundant and least likely to buy a home.

My advice to the Government for this cohort is to not ignore them once the country is out of this coronavirus situation. It’s all very good keeping the Home Counties Tory voting Baby Boomers happy with green belt policies and other policies to keep their property values higher, yet as the Generation X and Millennials get older and take over as the largest demographic to keep happy (for the polls), the hitherto inconceivable action of the Government levying Capital Gains Tax on your main home may come to fruition.

I mean, we have £400bn to pay back because of coronavirus … it has to be repaid and it has to come from somewhere. Those denied real access to buying their own home in the last 10 years, because of massive house price gains over the last 25 years, could vent their anger via the ballot box - if not at the 2024 General Election, maybe in 2029, when they realise that the futile housing policies of both Labour and Tories of the last 23 years have left them with enduring financial diffidence.

Maybe we should all look to the grocer’s daughter from Lincolnshire who in 1979 set out a bold vision of home ownership for everybody. Whichever political party picks up the truly batten and reframes it for the current 2020’s generation and comes up with the goods, will be the ultimate winner in this game.

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