Is it Time to Stamp Out Stamp Duty?

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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
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Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
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Are you Ready to Sell in 2021?

 

If you’re thinking of putting your Warrington property on the market in the New Year, you’ll want to make it stand out from the crowd and generate as much interest as possible to make sure you achieve the full asking price.

The team at Hamlet Homes Warrington are highly experienced in property and will always make sure we give our utmost attention when accompanying viewings on your property, but there are always little tweaks you can make to your home to make sure it’s in outstanding condition and ready for the most discerning viewer!

The Hamlet Homes Warrington team have put our heads together and want to share with you the top nine things you can do to get your property ready for a new year sale!

1. Neutralise Your Home
There’s nothing wrong with injecting your personality into your home, but if you’re selling, then garish paint and leopard print feature walls won’t be to everyone’s taste. If this sounds anything like your property then give some serious consideration to some light redecorating, ideally using neutral colours such as off-white, magnolia, greys or pastels.

It’s far more appealing to potential buyers and it will also allow them to visualise their own ideas better if they have a blank canvas to work with.

2. Lighten Up
Following on from our first point, there are some simple lighting tricks you can do to make your home feel brighter, which in turn will make it feel more spacious and appealing to potential buyers.

It can be as simple as putting up a mirror opposite a window to reflect the light, or ensuring you have high-voltage light bulbs fitted. If you have blackout blinds or curtains in your bedrooms then make sure these are open before any viewings, to avoid rooms appearing dark or gloomy.

3. Declutter
We all tend to throw empty boxes in cupboards (just in case) and gather ‘stuff’ as the years pass. If you’ve been hoarding items, then the sale of your property is the perfect time to get rid of unwanted items and declutter. It’ll help your home appear more spacious and there’s potentially the added benefit of making a few pounds selling some of your old belongings.

4. Deodourise
Did you know that your home has its own distinctive smell? Obviously not all houses have strong smells but if you regularly smoke or vape indoors or you have a cat or dog causing a whiff, then no matter how beautiful your house may be, this is likely to be the first thing a visitor notices when they walk through the front door – and it can be very off-putting. If your property has a strong smell to it then give it a good deep clean before any viewings or get professionals in if you need to.

5. First Impressions are Everything

It’s rare that you’ll make a sale on first glance, but you can definitely lose one! If you have an overgrown garden, a grubby front door and a broken gate then it’s time to get your gardening gloves on and tidy it all up.

Kerb appeal is important not only because many potential viewers will do a ‘drive by’ to check out the property before booking a viewing, but first impressions are what always form the basis of someone’s opinion of your property. Things that can damage your home’s kerb appeal include having dirty wheelie bins on display, smeared windows and chipped paintwork, so spend a little time maintaining your outdoor areas and be sure everything is up to scratch before the viewings start.

Adding little extras like a potted plant or a lamp to light up your entrance can make a big difference too. You don’t need to do anything extravagant, just remember, it’s all in the details!

6. Show Off Your Homes Assets
Step room to room in your home and check for little things that may detract the attention of a viewer:

• If you have a study or a room you are using as an office, make sure your desk is tidy and your paperwork is filed away so that viewers can see an organised workspace.
• If you have a fireplace, make sure it’s not being blocked by toys or extra bits of furniture that you haven’t stored away so that viewers can imagine themselves cosy by the fire.
• If you have a dining table – a common dumping ground for pretty much everything – make sure it’s clear of any paperwork or household bits that have been piling up so that viewers can see there is a defined place to eat.
• If you have a utility room, remove piles of laundry and tidy away detergents so that viewers can appreciate the extra space catering for the needs of a family.

When it comes to our homes it’s easy to take some of the features we see every day for granted, but to a viewer they may be just what they’re looking for in a home, so be sure to highlight all of your property’s best features.

7. Be Prepared
Think back to when you bought your property. What questions did you have for the estate agent? If a buyer were to ask how old the windows are and if they have a guarantee would you know the answer? What about the last time you had the boiler serviced? When was the central heating checked? Be prepared and find your paperwork and service history relating to your home before it’s requested to save time!

• Service the boiler
• Check the central heating system
• Look out any guarantees and warranties

8. Fix up, Look Sharp
Keeping on top of the maintenance of your home is crucial for when you bring your property to market. If you haven’t regularly maintained your home, now is the time to get all those little niggly jobs done. Make sure everything’s as well maintained as possible, whether it’s fixing a damaged fence or just replacing a broken lightbulb, these minor details can make a big difference to potential buyers. It shows that your house is well looked after, and it will give viewers fewer excuses to negotiate. Make your property as flawless as possible – touch up paintwork and don’t forget to check gutters and drainpipes to get rid of leaves and debris.

9. Depersonalise
Buyers want to imagine themselves living in a home, so seeing pictures of strangers all over the house can actually have an off-putting effect, even though it’s your home!

Don’t remove every family photo, you’re still living there of course, but there’s a fine line between making a home look lived in and loved and showcasing it as someone else’s dream home! Think about putting a few photos away before viewings. The space created will allow viewers to get a better idea of what they would do with the space and to imagine it as their own.

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.

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
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First Time Buyer? 4 Easy Ways to Improve Your Credit Score

When you take out your first mortgage, as with any financial product, you’ll have to go through a credit check. It’s normal to feel apprehensive about this process, as let’s face it, few of us have perfect credit.

That’s why it’s worth trying to improve your credit score, if possible, in the months before you apply for a mortgage, as a better score can mean lower rates and a wider choice of lenders.

With this in mind, here are four ways you can improve your credit score.

1. Get a copy of your credit report

There are lots of free and paid for credit report services in the UK, enabling you to access your information. We recommend you go directly to the three main credit reference agencies; Experian, Equifax and Callcredit. When running your credit check, your lender or broker will usually use one or a combination of these services.

Once you have your credit report, check it carefully for errors. It’s important to do this well in advance of applying for your mortgage, as it can take a while for changes to take effect. Some things that could be dragging down your credit rating include:

• Not being on the electoral register
• Late or missing bill payments
• Taking out a lot of credit in comparison to income
• Being financially linked to someone with bad credit, i.e. an ex partner

Whilst you can’t erase a bad credit history, you can draw a line under it and become better with money, as well as correcting any mistakes that are bringing down your score.

2. Borrow responsibly

There’s one thing that can be just as worrying to lenders as a bad credit history, and that’s having no credit history at all. If you live with your parents and have never had a loan, credit card or car payments, then it’s possible you may have barely any credit history. This may seem like a good thing to you, but the reasons why lenders might find this troublesome is that they don’t know if you’re any good at handling money! If you’ve never had to balance a budget and pay off a utility bill every month, then how do they know if you can cope with making mortgage payments?

The simplest solution to this is to borrow small amounts and pay them off monthly, before the interest charges kick in. Get a credit card and use it for your day-to-day expenses, paying it in full each month. This will help you build a credit score. Just be careful not to be tempted to overspend.

3. Don’t max out cards – and do pay more than the monthly minimum

When you apply to borrow money, whether it’s a credit card or car finance, you get a credit limit, which is the maximum amount a lender will be willing to lend you. It’s important to realise that this is a limit, not a goal, so never go over it. Try to pay down any credit cards and loans as much as possible before you apply for a mortgage, as having cards close to their limit instantly lowers your score.

You should also make sure you pay more than the minimum each month on credit cards. If you pay the minimum, you’re just paying off the interest, so your debt never really goes down. There are online calculators that you can use to work out how long it will take to pay off your cards, so take a look at what a difference an extra payment of £10 or £20 per month can make to your overall balance.

4. Pay on time

If you’re the type who pays their bills whenever they remember, and regularly misses payments by a few days, then get out of bad financial habits now. Draw up a spreadsheet of your outgoings and which day they are due, and make sure that you pay bills a few days before this to allow the payments time to go through. If making manual payments is a pain, then consider setting up direct debits that debit your account soon after payday, so there’s no excuse to miss any.

Getting a better credit score can help you as a first time buyer, enter the mortgage market. It shows that you’re responsible with money and gives you a better opportunity to see the best mortgage deals. Many first time buyers only have a small deposit, so may be looking to borrow 90-95% of a property’s value, and to get these kinds of mortgages, you’ll need a great credit rating and no adverse credit on your file.

Contact the team at Hamlet Homes Warrington on 01925 235 338 for more first time buyer property advice!

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

Warrington Homeowners to be ‘Unchained’ from Toxic Leasehold Agreements

When William the Conqueror invaded our fair shores in 1066, like all good kings, he needed to buy loyalty and raise cash to build his castles and armies. He did this by feudal law system and granted all the faithful nobles and aristocrats with land. In return, the nobles and aristocrats would give the King money and the promise of men for his army (this payment of money and men was called a ‘Fief’ in Latin, which when translated into English it becomes the word ‘Fee’… as in ‘to pay’).

These nobles and aristocrats would then rent the land to peasants in return for more money (making sure they made a profit of course) and the promise to enlist themselves and their peasants into the Kings Army (when requested during times of war). The more entrepreneurial peasants would then ‘sublet’ some of their land to poorer peasants to farm and so on and so forth.

The nobles and aristocrats owned the land, which could be passed on to their family (free from a fee i.e. freehold), while the peasants had the leasehold because, whilst they paid to use the land (i.e. they ‘leased it’ which is French for ‘paid for it’) they could never own it. Thus, Freehold and Leasehold were born (you will be pleased to know that in 1660 the Tenures Abolition Act removed the need of freeholders to provide Armies for the Crown!).

4.3 million properties in the UK are leasehold …

and 32,652 properties in Warrington are leasehold. By definition, even when you have the leasehold, you don’t own the property (the freeholder does). Leasehold simply grants the leaseholder the right to live in a property for 99 to 999 years. Apart from a handful of properties in the USA and Australia, England and Wales are the only countries of the world adhering to this feudal system style tenure. In Europe you own your apartment/flat by using a different type of tenure called Commonhold.

The average price paid for leasehold properties in Warrington 

over the last year is £187,095.

The two biggest issues about leasehold are firstly, as each year goes by and the length of lease dwindles, so does the value of the property (particularly when it gets below 80 years). The second is the payment of ‘ground rent’ – an annual payment to the freeholder.

Looking at the first point of the length of lease, the Government brought in the Leasehold Reform Act 1967, which allowed tenants of such leasehold property to extend their lease by upwards of 50 years. However, this was very expensive and as such only kicked the can down the road for half a century (when the owner would have to negotiate again to extend another 50 years – costing them more money, time and effort).

Ground rents on most older apartments are quite minimal and unobtrusive. The reason it has become an issue recently was the fact some (not all) new homes builders in the last decade started selling houses as leasehold with ground rents. The issue wasn’t the fact the property was sold as leasehold nor that it had a ground rent, it was that the ground rent increased at astronomical rates.

Many Warrington homeowners of leasehold houses are presently subject to ground rents that double every 10 years.

That’s okay if the ground rent is £200 a year today, yet by 2121, that would be £204,800 a year in ground rent, meaning the value of their property would almost be worthless in 100 years’ time. One might say it allows for inflation, yet to give you an example to compare this against, if a Warrington leasehold property in 1921 had a ground rent of £200 per annum, and it increased in line with inflation over the last 100 years, today that ground rent would be £9,864 a year.

This is important because the majority of leasehold properties sold in Warrington during the last 12 months were semi-detached, selling for an average price of £192,866.

So, without reforms, the value of these Warrington homes will slowly dwindle over the coming decades. That is why the Government reforms announced recently will tackle the problem in two parts.

Firstly, ground rents for new property will effectively stop under new plans to overhaul British Property Law. Under the new regulations, it will be made easier (and cheaper) for leaseholders to buy the freehold of their property and take control by allowing them the right to extend the lease of their property to a maximum term of 990 years with no ground rent.

Secondly, in the summer the Government will create a working group to prepare the property market for the transition to a different type of tenure. Last summer the Law Commission urged Westminster to adopt and adapt a better system of leasehold ownership – ‘Commonhold’. Commonhold rules allow residents in a block of apartments to own their apartment, whilst jointly owning the land the block is sitting on plus the communal areas with other apartment owners.

These potential leasehold rule changes will make no difference to those buying and selling second-hand Warrington leasehold property.

Yet, if you are buying a brand-new leasehold property, most builders are not selling them with ground rent (although do check with your solicitor). The only people that need to take any action on this now are people who are extending their lease. If you are thinking of extending the lease of your Warrington property before you sell to protect its value, your purchaser may prefer to buy on the existing terms and extend under the new (and better) ones later (meaning you lose out).

Like all things – it’s all about talking to your agent and negotiating the best deal for all parties. Should you have any questions or concerns feel free to pick up the phone, message me or email me and let’s chat things through.

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.

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
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Has Your Property Been Under or Overvalued? How to Ensure Your Estate Agent has got the Asking Price Right

                               

When you put your property on the market, you put your trust in us – the experts you have chosen. We have the details, we know your expectations, and our aim is to get you moving as soon as possible.

Sometimes, different agents will come to other prices and of course, there are reasons for this, such as an estate agent simply trying to win your business or perhaps a different level of experience and knowledge.

When talking with home movers in Warrington, we’ve discovered that many people do indeed wonder about whether or not their property has been priced correctly. You’ve probably heard phrases like “priced to sell”, but how do you really know if your property has been undervalued or indeed overvalued? And why does it matter?

So, let’s look at how you can tell whether your property is on the market at the correct price.

What is the Right Price?

In some respects, this is the million-dollar question. Is your property in Warrington priced on the low side to sell quickly, or is it priced relatively high so that you can potentially make more money? Well, actually, the right price is only ever about what you and the buyer agree to so that a sale can move forward. No other prices really matter!

Top Tip: Define what price you want or need to sell your house for and if you are prepared to lower your expectations if the need arises.

Is my Property Overpriced?

Are you frustrated because you seem to get a lot of viewings but no offers? Well then, one of the reasons could be that your house has been overvalued.

Potential buyers might like the look of your house in Warrington

but fail to view because they feel the asking price is too high. They may view, and they may love it but still feel it’s not worth the price-tag. Not all potential buyers will feel they can risk putting in a low offer either.

If you are enjoying lots of viewings but no offers, these are clear signs that something may need tweaking, particularly if similar properties nearby have sold.

Top Tip: If you do feel things need to change, do not be afraid to speak with your estate agent. After all, it’s in their interest to get a sale, so if their strategy needs to change, it should.

Is my Property Undervalued?

To define undervalued, you have to look at a few different factors, including how much you are prepared to sell your house in Warrington for. You might get an offer, or multiple offers, super quickly and this may worry you into thinking you could have achieved a higher price. But that is not necessarily the case. A good estate agent will ensure your home does not stagnate on the market!

Conversely, if you are getting no viewers and your property is on the market at a lower price than similar homes which have sold nearby, an under-valuation might be making people wonder if there is something wrong with your property!

Top Tip: Do some research of your own into similar properties on the market in Warrington. If yours appears obviously low, speak to your estate agent.

Do Your Own Research

We at Hamlet Homes Warrington use our local experience and knowledge to advise you of what we think your property is worth. Sometimes though, we suggest having a look on the internet yourselves as well, this can give you peace of mind that we’re on the right track.

There are so many tools at your fingertips, and you should use them!

Go to the search engine of your choice and search for house prices in your area. There are sites that not only give you properties that are currently on the market but also offer up what a property has sold for in the past too.

You could also make use of online valuation tools if you want a second opinion. However, bear in mind that these are not always accurate, and it’s best to speak to professionals who have local knowledge and experience.

Top Tip: Compare similar properties in Warrington

as you’re likely to get a good comparison. If you compare a similar house, but in different localities, then different factors will affect prices.

What Next?

Speak to your agent. We cannot stress strongly enough that communication is key. If you have concerns and you’ve done some research, then talk to your estate agent. Maybe it’s time to review how they are operating and whether or not they need to change.

Top Tip: Don’t be afraid to ask the questions and challenge. It’s your property that you are selling; you are in the driving seat.

Hamlet Homes Warrington use our skill, experience and local knowledge to place your property on the market at the right price. If we can help you, give us a call on 01925 235 338 or email manoj@hamletwarrington.co.uk and we will be delighted to help.

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

How Will the Brexit Deal Affect Warrington House Prices & Your Mortgage Payments?

Christmas Eve brought the news that Boris Johnson had conclusively agreed on a Brexit deal for the UK with the European Union. This gave optimism that the economic turmoil of leaving the EU would be radically reduced, yet what will this ‘trade deal’ do to the value of your Warrington home and the mortgage payments you will have to make?

Since the summer, the Warrington property market has been booming, yet many commentators have cautioned that the momentum cannot last. With unemployment and the end of Stamp Duty Holiday on the 31st March, the Halifax reported last week that they believed UK house prices would drop by at least 2% (and in some areas 5%) in 2021.

I find it fascinating the Warrington property market has defied the doom and gloom swamping the wider British economy in the last seven months. The Warrington property market has profited from the large swell in demand from better-off existing Warrington households trying to buy larger Warrington houses (as they are required to work from home) together with the added benefit of saving money from the Stamp Duty Holiday.

Warrington house prices are 4% higher than a year ago, making our local authority area the 213th best performing (of the 396 local authorities) in the UK.

With the Brexit deal being voted through in the Commons on the 30th December, many say this will boost the property market just as the Government-backed measures supporting the property market come to an end. Yet, in the face of rising unemployment due to the pandemic, the Brexit deal may do little more than avoid uncertainty for the Warrington housing market.

What will happen to Warrington house prices?

The Warrington property market in 2019 was held back because of the uncertainty of the Brexit deal. In January 2020, we saw the demand released in the fabled ‘Boris Bounce’, only for buyer and seller activity to fall off a cliff in March during the first lockdown. It then took off like a rocket once lockdown was lifted. UK house prices are 4.19% higher today, year on year (although some areas are breaking the mould, like Aberdeen whose house prices have dropped by 5.1% and at the other end of the scale, Worcester’s house prices have increased by 11.9% year on year). A lot of that growth in UK property prices has been fuelled by buyers spending their stamp duty savings on the purchase price of their new home. Yet, it cannot be ignored.

Of the 104,600 workers in Warrington, 7,100 are still on furlough (although roughly 40% of those people are still only on part-time furlough).

When the furlough scheme ends in April 2021, unemployment is likely to rise to in excess of 11%, whilst the protection for the homeowners utilising mortgage holidays will finish.

Piloting the rocky shoreline of the recession is more important than any Brexit deal for Warrington homeowners, buy-to-let landlords, buyers and sellers.

In April, the market will also be dealing with the end of the Stamp Duty Holiday, which is due to come to an abrupt halt on the 1st April 2021. Consequently, we will continue to see the house price index's show growth in the first half of 2021. They will then recede as the prices of Warrington homes purchased after the 1st April 2021 reflect the lower price paid (because buyers would have had to pay for their stamp duty again). Therefore, probably by the end of 2021, the Halifax may be correct, and Warrington house prices will be 2% to 5% lower than they are today, simply because of the stamp duty.

What will happen to mortgage rates?

The real benefit from the Brexit deal is that there will be no tariffs on most goods coming into the UK. 52% of all goods imported into the UK are from the EU (totalling £374bn per annum). The UK Government were planning to add between 2% and 10% tariffs under World Trade Organisation rules on the vast majority of those goods. Price increases because of those tariffs would have fuelled inflation, meaning the Bank of England would have to increase interest rates. Although 77.2% of British mortgages are on fixed rates (paying an average of 2.16%), eventually those increased Bank of England rates would have fed through into higher mortgage payments. To show you how vital low interest rates are…

The average Warrington homeowners’ mortgage is £333.17 pm, owing an average of £135,835.

Yet if interest rates rose only 1.5%, Warrington homeowners’ monthly mortgage payments would rise to £502.97 pm, and if interest rates were at their 50-year average, then the mortgages payments would be an eye-watering £979.52 pm (note all mortgage payment figures mentioned above are only for the interest element of the mortgage- the capital repayment element would be additional and variable depending on the length of mortgage).

As I have mentioned many times in the articles I have written about the Warrington property market, low-interest rates are vital to ensure we don't have a property market crash. That's not to say just because they are at an all-time low of 0.1% to aid the economy that there won’t be some form of realignment of property prices later in the year (as mentioned above). Yet low interest rates mean people can still pay their mortgages, so there won't be panic selling. That would mean there won't be a flood of property come to the market (like there was in the 1988 and 2008 property crashes when interest rates were much higher), suggesting property prices should remain a lot more stable.

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.

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
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7 Tips For a Smooth House Move in Warrington

 

You have secured your new dream house in Warrington, and the only thing remaining is to wait for moving day! It’s a thrilling time for anyone, single, couple, or family, and it’s easy to let the excitement get the better of you. In most cases, you will have a mountain of belongings to move from one property to another, so by planning in advance, you can make that move as smooth, efficient, and stress-free as possible.

1. Declutter in advance

It’s always best to start packing well in advance. In fact, it’s ideal if you can start packing up when you begin your new house hunt. This way, you can forget about the stress later on and instead begin to declutter and pack at the same time.

Sell any items of value that you don’t require to make a small profit and to offset some of the high costs of moving. Donate items to charity that aren’t worth selling but are still in good condition, and then recycle or bin the rest. This applies to everything, from clothes to knick-knacks. Streamline what you will bring to your new home.

2. Create a packing plan

Create a packing plan by going through what you need to have available until the day of the move. Once you have that list, you can then work out how you intend to pack up your belongings. This can be by theme, by room, or by both.

For example, you might have general bathroom boxes, bedroom boxes and kitchen boxes or you might instead pack by object type, for example packing away all your towels and tea-towels in one box and bathroom toiletries, hand soaps and so on in another. When packing, you should try and keep boxes at a manageable weight and ensure that items won’t break through the box, so don’t pile them too high! The last thing you want is for your valuables to become damaged in the moving process.

3. Label each box as you go

When packing up items in boxes, it’s very important that you label each box with its contents. This way, you won’t have to open every box right away and have your new home filled with items that don’t yet have a place to go. If you created a strategic enough packing plan, you should be able to unpack a few boxes and have everything you need to be comfortable whilst you unpack your belongings.

4. Disassemble furniture

Not every piece of furniture can easily be taken apart, but the chances are you will have at least one or two items such as beds or wardrobes. Disassembling these items can make moving your furniture and belongings so much easier. You might also want to invest in movers blankets so that your furniture doesn’t get dented when it is disassembled.

5. Have your children help you pack

If you have kids, it can be difficult to move to a new home, especially if they are worried about the change. You can improve this situation by asking them to help you pack. Have them declutter their own rooms and become involved and give them tasks disguised as games to help make the move fun.

6. Hire professional movers

Once everything is boxed up and labelled, you are going to want to hire professional movers. This takes out the heavy lifting, saves your back, and means your furniture is in good hands as it is packed up and moved into your new property. This is particularly important for furniture you couldn’t disassemble into small pieces.

7. Bring “First Night Boxes” with you

The last thing that you should pack are your “First Night Boxes”. These boxes should have clothes for a few days, towels, toiletries, bed linen, blankets, kitchen tools and utensils, such as a kettle, mugs, tea and coffee. Essentially anything you will need for the first few nights in your new home. Bring them with you in your own vehicle so that you can easily find them once all your other items are safely within your new home in Warrington.

A smooth house move is one that is done well in advance. The last thing you want is to be scurrying about trying to pack everything away in a rush because your moving date is nearing, and you need to be out of the property in just a few days.

Decluttering for viewings is the perfect time to start packing and giving yourself that time means you can easily find items once you are in your new home, guaranteeing a stress-free move.

For expert advice and a smooth move 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