How To Make Moving Home Fun For Children

 

Children often feel anxious when they are told that they are going to be moving home. They are concerned about whether they will like their new home, whether they will be able to see their friends, and whether they will have to change schools.

Like all of us, they simply need to be able to talk through their worries and get some answers to their questions. Taking time to sit down with them and listen to their worries and opinions is the best way to help.

Chatting in the car can be one of the best places for these sorts of chats, especially with teens.

Giving your children some autonomy over decisions such as the colour you are going to paint their new bedrooms and the furniture they would like to put in them can help to give them a sense of control. This can help alleviate the anxiety they may be feeling about moving somewhere new.

Taking your children on a viewing to see their new home can be very helpful. It gives them the impression that they helped choose which property they will live in and allows them to visualise where they will be moving to.

However, if at all possible, avoid taking them on the first viewings. This allows you to concentrate on looking at the properties and avoids the possibility of your child falling in love with a house while you do not!

Once you have had an offer accepted on a property, it can be a lovely idea to take your children on a tour of the local area. That way you can all find out where all the local parks are, where a nice cafe is, and if there are any exciting activities nearby. This will help turn a worrying experience into an exciting one, as they already know where some things are, so moving home doesn’t feel so daunting.

Make sure on moving day that you pack their most important belongings into a bag that they can keep with them. That way even when the moving truck is unloaded at the new house and they are surrounded by boxes they will still be able to cuddle and play with their favourite toys without having to worry about which box they are in.

We at Hamlet are always delighted to help your children in finding their new home. If you would like us to help you in finding the perfect new home for your entire family, please give us a call on 01925 235 338 or send us a message.

Moving to Warrington: Pain Free Packing Tips

When you ask most people what’s been the most stressful thing they’ve gone through, many of them will put ‘moving house’ up there with changing jobs or having a new baby. Not only do you have the long process of trying to find a house to suit your needs, there’s months of paperwork and phone calls with solicitors, switching your utility suppliers to a new house, and sorting out things like new schools for the children. This is all before the actual moving day, where you may find yourself running around trying to cram things into boxes.

One thing that can help with the stress of moving is being organised, and this is especially important when it comes to packing. If you don’t want to be dashing around on the morning of the move, follow these tips for pain-free packing and a smooth move.

Declutter first

A new home means a fresh start, so in the weeks before the move, spend time decluttering and deciding what you really want to take with you. Garages, sheds and lofts can be real clutter zones after you’ve lived in a house for a few years, so you may want to get a skip or hire a van when you clear them out, making it easy to get rid of junk.

Try not to send too much to landfill. Charity shops will usually be grateful for donations, and some will even collect larger items such as furniture. Once you’ve had a big declutter, the job of packing will seem much less daunting.

Buy supplies

Having the right supplies is important, so make sure you have:

• Plenty of strong boxes
• Tape and tape guns
• Labels and permanent markers
• Bubble wrap
• Strong bin bags

You can buy packing boxes online, or pick them up free from Freecycle or Facebook, as you’ll often find local people who’ve just moved and who want to get rid of their boxes.

Start early and pack things professionally

The earlier you start packing, the better the job you’ll do. Most people have things in their house they don’t use often, from decorative items to books, so start with these items that you won’t mind putting away for a while.

To pack properly, you should:

• Find the right size box and assemble it with plenty of tape
• Decide whether it will be used for fragile items, and if so, line it with bubble wrap
• Put the heaviest items in first, then lighter items on top, wrapping in bubble wrap if needed
• Don’t overfill boxes. If you have heavy items, pack them in a lot of small boxes rather than one very heavy, bulky box
• Seal the top using plenty of tape
• Clearly label the box with the name of the room and a brief description of the contents
• Make sure the box is clearly labelled ‘fragile’ if your removal company need to take extra care

Pack a suitcase each and an essentials box

A few days before the move, pack a suitcase for each member of the family with the clothes they wear most often, not forgetting school and work uniforms, and then start gathering essentials together in a big plastic box. This box will contain the items you’ll need on the day of the move, from paperwork and toys to teabags and a kettle, so you don’t need to unpack boxes the minute you arrive.

Once you know which essentials to keep handy, you can go from room to room and pack up, using the same tips as before. The aim is that by the night before the move, the only things you’ll have left unpacked will be bedding, a few clothes, and some kitchen essentials.

The day of the move

When you’re getting ready on the day of the move, you can pack as you go. For example, bedding can be rolled up and placed in thick bin bags, ready to go to the new house. It’s worth having a couple of extra boxes made up so that you can throw in any odd bits and bobs as the removal company do their job.

It’s always recommended to hire a professional removal team, as they’ll make moving day so much easier. If you’ve packed everything properly, then it should be a smooth process to get everything in the van and ready to go. If you really don’t like the thought of packing, then you may choose to use a professional packing service, where everything is packed up for you a couple of days before the move, saving you time and stress.

If you are planning on moving to the Warrington area soon, why not telephone us or call in. We’ll be happy to advise you on our available properties in the area. Contact us on 01925 235 338 for more information.

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
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Warrington Property Market: 2011-2021

A look back at the Warrington housing market over the last decade

With all of us completing the Census, a couple of weeks ago, it made me realise profoundly that mine and my family’s life, which from our own point of view seems unique and delightful, makes us all into a series of statistics for the Census gatherers to pore over. To digest and regurgitate facts, figures and trends for those who are interested in the ever- changing social circumstances of these islands.

However, the information from the Census is vital to improving our lives - Governments can plan the future with the information it provides and we in turn can wonder about the lives of our past generations with the information provided therein historically if we so wish.

Whilst the information from this Census won’t be published until March 2023, let us have a look at what has been happening in the Warrington property market since the last time we completed the Census in 2011.

Just to remind you, 2011 saw the wedding of Prince William and Kate Middleton, Mr Cameron was the PM, there was the last flight of the Space Shuttle and Game of Thrones premiered.

Whilst in the Warrington property market …

· The average price paid for a Warrington detached home in the last 12 months has been £343,600. The average value of a Warrington detached home has risen by 27.5% in the last 10 years or £68,400

· The average price paid for a Warrington semi-detached home in the last 12 months has been £198,600. The average value of a Warrington semi-detached home has risen by 38.6% in the last 10 years or £55,700

· The average price paid for a Warrington town house/terraced home in the last 12 months has been £149,700. The average value of a Warrington town house/terraced home has risen by 27.5% in the last 10 years or £36,800

· The average price paid for a Warrington apartment/flat in the last 12 months has been £107,400. The average value of a Warrington apartment/flat has risen by 36.8% in the last 10 years or £34,900

New properties built in Warrington…

Irrespective of any dip in Warrington house prices or transactions when the Stamp Duty Holiday ends in the autumn, this is a trend that looks set to continue, with no sign that supply of new homes is anywhere near to keeping pace with demand for households.

There have only been 3,446 new properties built in Warrington in the last 10 years, that’s less than 29 a month. That means the population in Warrington has risen by 1.72 people for every new home built over that decade.

Nationally, the Country has only built just over 180k homes a year over the last decade, 120k less than the national target of 300k. In the meantime, the population has grown by more than 4 million.

When looking locally at the size of new build property in Warrington, the average property is around 850 sq. ft., which is 13% larger than a decade ago.

Rents in Warrington …

Whether you are a winner or loser in terms of rental values depends on whether you are a Warrington landlord or a Warrington tenant.

The average rent for a property in Warrington currently stands at £600 per month, whilst a decade ago, it was £545 per month

This means private rents have increased by 45p a month for the past ten years. Interesting, when compared to the national average of 98p a month whilst in London, rents have grown by £4.64 a month.

The next 10 years of the Warrington Property Market…

The next ten years will also be just as fascinating. To try and predict would be a fool’s game.

For example, who would have believed what the Warrington property market has done in the last 12 months since the start of Lockdown 1.0. The number of transactions (i.e. people moving) in turn with UK house prices having risen so much in the last year ... all during a worldwide pandemic and at a time of such mayhem and havoc in the UK and world economy, is nothing short of remarkable … the question is – is it sustainable?

Read these articles in the coming months and years and I will share with you what is happening to the value of your Warrington property, be you a Warrington homeowner or Warrington landlord.

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

Plan and Prepare: Your Moving Home Checklist Courtesy of Hamlet Homes Warrington

 

Moving home! The very thought of it is probably enough to send shivers down your spine and cause you to break out in a cold sweat, and this is unsurprising as moving home is right up there with divorce and death when it comes to heightened stress levels!

The fact is though, that any kind of ‘change’ creates stress and whether you are moving home within Warrington or relocating from further afield, plenty of planning and preparation will be required.

Moving home, and especially relocating to a new town or city, represents one of the biggest changes you may make in your life and so naturally brings a great deal of stress along with it. This in turn can lead to a double whammy, as stress can often lead to a lack of energy and motivation. So how are you expected to plan and prepare for your home move during one of the most stressful periods in your life?

Stay focused!

When preparing to move home there will be an element of multi-tasking required as there are such a lot of elements vying for your attention which need to be done. At Hamlet Homes Warrington we understand this and genuinely want your move to run super smoothly, so with this in mind, we have compiled a handy moving home checklist to help you remain stress free.

At first glance, some of our suggestions may appear to be common sense, but you will be surprised at just how often the simplest of tasks is overlooked or forgotten when the dreaded stress strikes!

Moving home calls not only for exceptional organisational skills, but also proactivity. Grabbing the bull by the horns and completing certain chores well in advance of their deadlines will go a long way to helping you stay ahead of schedule, so the aim of this home moving checklist is to help you accomplish that by concentrating on the basics of planning and preparation.

Get rid of everything you don’t need
One thing you can accomplish efficiently is to sort through all of your ‘stuff’ and get rid of the things you don’t need. Moving unwanted items from your current property to your new property is a great waste of time and effort, so don’t do it! It’s surprising how much more in control you will feel once you start narrowing down your inventory. Getting rid of unwanted items can be done through a car boot sale, selling on eBay or donating to charity.

File important papers and documents together
Since moving home is hectic to say the least, you need to be aware of the exact location of all your important items. These are the things that you absolutely must not misplace and should be hand carried on moving day, not placed in a box for the removal company to transport.

Make sure all of the following paper items are kept together in one secure place such as a document wallet:

• Address Books
• Birth Certificates
• Passports
• Bank Statements
• Insurance Policies
• Marriage Certificates
• Credit Cards and Statements
• Medical and Dental Records
• Irreplaceable Memorabilia
• Photos and Photo Albums
• Vehicle Documents
• Pet and Vet Documentation
• Wills
• Any other important or legal documents

Prepare well in advance for the move to your new location
There are many things you can organise before you reach your new home that will help smooth out the bumps of the moving process. In particular, make sure you contact utility companies and arrange for your new services to be connected. These can include:

• Cable TV
• Gas
• Electricity
• Water
• Oil
• Telephone
• Internet access

Contact your insurance companies too as you will need to have your policies amended ready for moving day:

• Car insurance
• Home & Building Insurance

Prepare change of address forms for all of your correspondents:

• Credit card companies
• Banks
• Vets
• Kennels/Cattery
• Insurance companies
• DVLA
• Magazines and other subscriptions
• Family and friends

Register for new medical providers such as a new doctor and dentist if necessary.

Keep a ‘little black book’
Keep all your important phone numbers written clearly and legibly in a diary or notebook, for both your old and new contacts. This should include banks, doctors, emergency contacts, family members, friends, estate agents, removal companies, pharmacies, schools, storage facilities and utilities.

With proper planning and preparation, the whole moving process will be smooth, and you won’t frantically be searching for a new doctor, pharmacy or important information at the eleventh hour.

With proper planning and preparation, you will have your important documents at the tips of your fingers at all times and you will endure minimum chaos and clutter.

Keep this handy moving checklist safe and get organised or for more home moving planning and preparation advice, drop in and talk to the expert team at Hamlet Homes Warrington or telephone us on 01925 235 338 and we will be happy to ensure your home move runs smoothly.

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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Warrington Pensioner Homeowners are Now Worth £840.4M

How wealth is distributed will always be a contentious issue, especially as the Baby Boomers (those aged between their late 50’s and late 70’s) wealth has grown exponentially over the last 20 years, compared to the wealth of the younger generation.

With most UK property in the hands of the older generation, with its total value about to smash through the £8 trillion barrier (up from £3 trillion at the start of the Millennium), is it right that so much wealth is concentrated in the hands of the older generations?

As national house prices have continued to grow unabated (for example in the last eight years by 49.9%, whilst real take home pay has only increased by 11.8%), this has meant younger people are finding it even harder to get onto the property ladder and those already on it to move up it.

Looking at the older end of the age range for home ownership…

of the 70,510 homes in Warrington, 16,854 households are 65 years or older, and 76.9% of those households (12,967) are owned (mostly without a mortgage)

A full split as follows …

• Owned 76.9%
• Council House 17.7%
• Privately Rented 2.7%
• Living Rent Free 1.7%
• Shared Ownership 0.9%

I talk with many Warrington pensioners who want to move yet are unable to. There appears to be a shortage of suitable properties in Warrington for members of the older generation to downsize into. Due to their high demand and low supply, Warrington bungalows and suitable ground floor apartments achieve on average a 15% to 25% premium per square foot over two/three storey properties. Yet would it surprise you only 1% of new builds in the UK are single storey bungalows (compared to 7% 25 years ago)?

Warrington pensioner homeowners are now worth £4.46bn

YouGov did a survey a couple of years ago and they found that just over one third of homeowning pensioners in the UK were looking to downsize into a smaller property. As I have stated before, as a nation, we need to rethink how we can encourage older homeowners to sell their larger homes to release them to the younger families that desperately need them.

The Government over the last 11 years have appeared to target all their attention on first-time buyers with a strategy such as the Help to Buy Scheme. However, this doesn’t address the long-established under-supply of appropriate retirement housing vital to the needs of Warrington’s quickly ageing population. Unfortunately, Warrington’s housing stock is sadly ill-equipped for this demographic shift to the ageing homeowners.

Also, to add insult to injury, those more mature Warrington pensioners in their 80’s and 90’s who do live in the restricted number of Warrington bungalows and suitable ground floor apartments are finding it difficult to live on their own, as they are unable to leave their bungalow/apartment because of a shortage of sheltered housing and ‘inexpensive’ care home places.

This in turn means the younger 60 to 70 year old Warrington retirees (in their bigger two/three storey family houses) can't buy those Warrington bungalows (occupied by the older retirees), which means those Warrington families in their 30’s and 40’s can't buy those larger family houses (occupied by the younger 60 to 70 year old retirees) they need for their growing families ... it’s like everyone is waiting for everyone because of the logjam at the top of the property ladder.

So, what is the solution? Quite simple – build more homes! 

In the last 30 years, the UK population has grown by around 12 million people, yet the number of properties has only grown by around 4.2 million

With obstructive planning regulations, immigration, people living longer and increased divorce rates (meaning one family becomes two) we have needed 275,000 properties to be built a year since the Millennium to just stand still and meet demand. Twenty years ago, the UK was building on average 185,000 households a year, that figure dropped in the five years after the Global Financial Crisis in 2008 to 140,000 households a year. Thankfully that has increased steadily over the last five years and last year we created 245,000 households in the UK, however, we still have all those years since the Millennium to make up for.

The answer is to build on more land for starter homes, bungalows and sheltered accommodation, because land prices are holding back the property market as the larger national building firms are more inclined to focus on traditional two and three storey houses and apartments than bungalows (because they make more money from them). You might say there is no land to build the property on, yet…

only 1.2% of the UK is built on with residential properties

So how could Warrington people make money on this news? Shrewd Warrington property investors should consider purchasing bungalows, especially ones that need some titivating (possibly after somebody has passed away). Bungalows purchased at the right price and location are a great gamble for flipping. They should also be considered for renting out as demand will only outstrip supply. This would be a start to the solution of rebalancing the Warrington property market so everyone is happier with their lot.

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

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

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

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

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

However, back to the number of properties for sale…

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

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

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

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

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

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

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

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

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

Will overall demand for Warrington property continue to be stable?

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

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

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

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

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

If you are 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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No Deal Brexit – The Prediction for Warrington House Prices

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

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

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

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

	Average Value 2016	Predicted Drop by The Treasury because of Brexit	Average Value Today	Uplift in Value in Last 4.5 Years	% Increase since Brexit Vote
Warrington Detached	£322,100	£264,100	£343,200	£21,100	7.6%
Warrington Semi	£171,100	£140,300	£201,200	£30,100	16.6%
Warrington Terraced / Town House	£120,600	£98,900	£146,600	£26,000	22.5%
Warrington Apartments	£117,500	£96,400	£138,300	£20,800	16.7%

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

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

Those Warrington homeowners who own semi-detached homes would have made an average of £30,100 profit, a rise of 16.6% or a weekly profit of £115.77 — calculated between the price they would have paid in the summer of 2016 and the price they would sell for today. Looking at the weekly profit for all property types in Warrington since the Brexit vote …

• Warrington detached homes weekly profit of £81.15 per week
• Warrington semi-detached homes weekly profit of £115.77 per week
• Warrington terraced homes/town houses weekly profit of £100.00 per week
• Warrington apartments weekly profit of £80.00 per week

Whilst it is no surprise the property market boom was inspired by the Chancellor’s Stamp Duty holiday, this is not exclusively the Chancellor’s achievement. The three ‘D’s have been with us throughout 2020, Covid or no Covid (Debt, Divorce and Death), together with a huge shift in the way Warrington homeowners see their homes. With us cooped up during the lockdown and working from our dining room tables, the want and need of Warrington people to have a home with an extra bedroom to work from, together with a garden has been one of the most challenging this year… hence the rise in demand.

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

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

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

Please do let me know your thoughts on the matter.

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

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

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

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
Hamlet Homes Warrington, your local Estate Agent
Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
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Will the Warrington Property Market Crash in 2021?

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

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

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

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

Warrington house prices will inevitably ease in 2021

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

Mortgage approvals at a 13 year high

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

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

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

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

The number of people moving home in Warrington is anticipated to

drop sharply after the Stamp Duty holiday ends at the end of March 2021

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

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

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

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

Interest Rates are the key to the future

of the Warrington property market

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

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

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

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

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

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

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

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

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

None of these things have changed because of Covid.

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

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

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

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

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

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
Hamlet Homes Warrington, your local Estate Agent
Follow my Warrington Property Market Blog
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Can You Save Money From The Proposed New Capital Gains Tax Changes

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

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

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

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

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

With tax bills about to go through the roof, is this the time to

leave the Warrington buy to let property market?

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

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

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

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

Under the new proposed CGT rules

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

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

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

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

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

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

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

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

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

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

Warrington’s ‘Generation Rent’ to become ‘Generation Buy’?

Boris Johnson has attracted both praise and horror in equal measure with a new plan for 95% mortgages to help beleaguered first time buyers to get on the property ladder, but would that expose UK taxpayers to too much risk? In this article I discuss the implications of what that would mean both nationally and locally in Warrington.

With the Warrington property market taking off due to the stamp duty holiday introduced in the summer, Boris Johnson announced at the recent Tory Conference a plan to offer first time buyers long-term low interest rate 95% mortgages (meaning they would only need to raise a 5% deposit). Yet when someone borrows more than 75%, the banks normally take out insurance in case the buyer defaults and the bank lose money if the property gets repossessed.

When the economy is good, the risk is low - so the insurance premiums are also low for the banks – meaning they are happy to lend high percentage loans. Yet, nobody could deny we are entering a period of uncertainty in the coming 12/18 months, meaning the insurance premiums for the banks have gone through the roof.

Mortgage companies have avoided riskier high percentage first time buyer mortgages since the start of the Coronavirus predicament. At the end of February 2020, there were just under 400 95% loan-to-value mortgage products accessible for first time buyers, yet today that figure stands at just 26.

Another reason for removing the number of 95% mortgages was that the demand for lower percentage loans exploded after lockdown was lifted, and with many mortgage staff still working from home, the banks and building societies focused their attention on getting those (less risky) mortgages sorted first. Therefore, they removed the higher percentage loans from their books, so they weren’t swamped with too much work ... so, one must ask, should the Government take on that risk from mortgage providers in the form of a guarantee from the Government — sparking concern among economists the Government is already burdened with debt – does it need anymore?

Yet taxpayers have been funding a similar scheme for years. The Help to Buy scheme, which allows first time buyers to buy a home with a 5% deposit (and the Government guaranteeing between 20% to 40% of the loan) has been in operation since 2013. Taxpayers are already guaranteeing £16.049bn of loans for 224,133 for first time buyers, and when we look closer to home locally, since 2013…

792 first time buyers in Warrington have used the Help to Buy scheme to help buy their home, relying on the Government to guarantee them on average £43,959

That means in Warrington alone, £34,815,528 is at risk if those Warrington homeowners’ default on those pre-existing Help to Buy Loans … yet the default rate is quite low.

So, should the Prime Minister be playing with the housing market? Ought he instead allow open market forces to be applied to the property market, allowing it to find its own normal and leave the mortgage providers to decide on mortgages based on risk, because all the Prime Minister will potentially achieve is a synthetic rise in property values?

Some in fact have argued it would be better to spend that

public money on delivering affordable rental properties?

However, in the long run isn’t it better for the country as a whole that British people own their home rather than rent because the Government will have rent to pay for those tenants when they retire if they are on the basic (low) state pension?

Personally, I don’t disagree with the initiative, yet all I am querying is, what are the Warrington first time buyers going to be able to buy? The Warrington property market is already quite drawn-out, as ultra-low interest rates have augmented the gap between the first home and the second home, the second home to the third and so on and so forth, so is this initiative fashioning a massive demand that will inflate property prices up the Warrington property ladder still further and ultimately lead to even more frustration down the line?

However, could this be the very thing that saves

the Warrington property market in 2021?

Firstly, with the stamp duty holiday due to finish by the end of March, there are suspicions the property market will stall. And secondly, the very popular Help to Buy scheme mentioned above also finishes at the end of March 2021. This boost instead of fuelling house price inflation could stabilise the property market.

In fact, the Government are hoping the property market will help power us out of recession. The early signs are good as the Warrington housing market has exploded as a result of the stamp duty holiday introduced in the summer. It certainly needs to as the country’s GDP only grew by 2.1% in August, down from 6.4% in July, 9.1% in June and 2.7% in May.

As a country, our GDP is still 9.2% below the levels seen pre-Covid. With the property market doing well, the country remains on course to leave recession in Q3, yet with the impending triple peril of rising unemployment (after furlough), further lockdown restrictions and a messy end to the Brexit transition period does this mean we are potentially in for an interesting ride?

Only time will tell if ‘Generation Buy’ will help save the property market, the economy and ultimately Boris? In the meantime, I think it will be a safe bet that people still need homes to live in … and irrespective of what happens to the property market, with that simple fact, the winners in all of this will be Warrington buy to let landlords.

Tell me your thoughts on this …

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.

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