Buying a home in Warrington: Budgeting for Fees

Out of all the purchases you make in your life, your home is likely to be the most expensive, but it’s not just the price of the property you need to take into account. When you purchase your new home in Warrington, you’ll have fees and other costs associated with the move to take into consideration. Make sure you budget well so that you don’t end up with a nasty surprise!

If you are looking to buy a home in Warrington, do make sure you take into account all the associated fees with your purchase. To help you, we’ve created this handy guide to the most common fees.

Stamp duty

Currently, stamp duty is payable when you buy a home that costs over £125,001, although if you’re a first-time buyer, you won’t pay stamp duty on the first £300k. The rate of stamp duty increases as a percentage depending on how expensive your home is, so if it’s under £250k it’s 2%, and if it’s under £925k it’s 5%. There are also higher rates payable for people with second or buy to let homes. Stamp duty needs to be paid to the HMRC within 14 days of completing the process of buying a home, and your solicitor will usually deal with this, so make sure you’ve budgeted for it.

Surveyors fees

When you buy a house, a survey is essential, as it ensures you don’t buy a place that’s full of problems. In some cases, your mortgage lender will require you to instruct a survey, which could be a basic survey costing £250, through to a structural survey which can cost from £500 to £1,300 depending on the condition of the property.

Solicitors fees

Whilst you can attempt to do your own conveyancing, it’s one of those things that isn’t recommended as it’s very tedious, involves a lot of legal terms, and if something goes wrong, you have very little comeback. Therefore, you should budget for conveyancing fees, which can vary from hundreds to a few thousand pounds depending on whether you are buying and selling or one or the other.

Mortgage costs

There are a number of costs you need to budget for when it comes to your mortgage.

• Deposit: This is usually the most costly part of moving. You’ll need to put down a deposit of between 5% and 20% of the property price. If you’re already a homeowner, then the deposit is usually paid out of the equity in your current home.
• Valuation fee. Some lenders will charge you a valuation fee so they can work out how much they’re willing to lend and some banks will waive this fee.
• Transfer fee: Many mortgage providers add a fee of around £40-50 to transfer the money to your solicitor for the property purchase.
• Arrangement fees: These are the fees charged to set up a mortgage, and they can range from a few hundred to a few thousand pounds. In some cases, you can find mortgages with no arrangement fee, and some lenders will give you the option to add the fee to the overall cost of the mortgage. Keep in mind that if you add the fees to your mortgage, you’re likely to pay more due to interest on the combined figure.

It’s definitely worth shopping around when it comes to mortgages, and considering using a broker, as fees can vary and you’ll want to secure the best deal.

Removal costs

It’s worth getting some quotes and choosing not just the cheapest removal company, but the one that has the best reputation and offers best value for money. Some removal firms offer extras such as boxes and packing, which can be helpful when you’re busy dealing with all the other paperwork and stress!

Some people choose to hire a van and do the move themselves, but anyone who has done this will no doubt tell you it’s not always ideal. On the day of completion, you’ll be busy dealing with solicitor calls and trying to get the keys to your new home, so you won’t want to have the responsibility of loading up the van and unloading at the other end! Leave it to the professionals.

Repairs and decorating

Even if your new home appears perfect, when you move in, there are bound to be a few things that might need to be fixed and of course you’ll probably want to redecorate, so it’s a good idea to budget for this.

Moving home can come with a lot of fees, not to mention paperwork, but once you’re comfortably settled in your new home in Warrington, you’ll realise that it was worth all of the stress.

For a wide range of properties for sale in Warrington, contact our friendly and professional team of experts at Hamlet Homes Warrington on 01925 235 338 and speak with us today about your next home.

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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37.1% of Warrington Landlords Could be Fined £5,000 each with New Energy Regs

As the UK has committed to a legally binding target to be carbon neutral by 2050, one of the biggest producers of greenhouse gasses are residential properties. To hit that target, every UK property will need to achieve a minimum grade of C on their Energy Performance Certificate (EPC) by 2035. The issue is two thirds of UK’s homes (around 19 million households) are rated D or below.

To help the country hit its targets, in 2018 and again in 2020, the EPC requirements altered for buy-to-let landlords, meaning they couldn’t rent their property unless it had a minimum energy rating of ‘E’ or above.

And now for homeowners, the Government are considering forcing banks and building societies to publish the average EPC rating for all the homes they lend money on and if the banks and building societies don’t hit the Government EPC targets, they will be fined (meaning those homeowners with low energy efficient properties will have to pay much more for their mortgages).

So, let’s look at these two issues, first regarding Warrington landlords and their EPC’s, so you know what your lawful responsibilities are and what else Warrington landlords can expect in the future.

Since October 2008, all UK rental properties have required an EPC, yet from April 2018, the Minimum Energy Efficiency Standards (MEES) regulations with regards to EPCs have also required all rental properties with new tenancies and renewals to have a minimum EPC rating of ‘E’ or above. However, since April 2020, the MEES regulations have applied to all existing tenancies as well, meaning if your Warrington rental property doesn’t have a valid EPC rating of ‘E’ (or above), it is illegal to let out.

154 rental properties in Warrington are currently let out with a ‘F’ or ‘G’ EPC rating, making them illegal to rent out and each landlord liable for a £5,000 fine – they just don’t know it

The EPC lasts for 10 years and gives an energy rating of between A - very energy efficient to G - very energy inefficient. If you find yourself, as a Warrington landlord, with a rental property that has an EPC rating of below ‘E’, what are your options?

To start with, you have a responsibility by law to carry out the changes suggested in your EPC report to improve the energy rating of your property. The law states that landlords should spend up to a maximum of £3,500 on the energy efficiency improvements set out in the EPC. Yet, if by spending £3,500, that improves your EPC rating but doesn’t mean you reach the ‘E’ rating, whilst you will still be expected to improve the rental property and spend the money, you will be able to apply for a high-cost exemption via the PRS Exemptions Register and still let the property (even though you will have an EPC rating of F or G).

It must be noted that some properties are exempt from the MEES legislation. If your property is listed or protected and the improvements would unacceptably alter it, it is exempt from EPC requirements.
Once your EPC has been registered, it is then valid for ten years. Because the EPC regulations came into force in 2008, there will be some rental properties that had their initial EPC and not had it renewed on its 10th birthday. Now as a Warrington landlord, you do not need to get a new EPC if your EPC reaches its 10th birthday, unless that is, you are starting a new tenancy with new tenants. The issue is…

of 9,549 rental properties in Warrington, 3,546 of them have an EPC that is 10 years or older which has not been renewed

If you are a Warrington landlord, your EPC is 10 years old (or older) and your tenant leaves, you will require a new EPC, because if you don’t, you will be fined £5,000. If all those buy-to-let landlords in our local authority area ignored that law, accumulatively they could be fined £17.7m.

Secondly, what about Warrington homeowners and the mortgage companies?

Under new legislation being considered, homeowners living in poorly insulated and draughty homes (meaning they would have a low EPC rating) could pay more for their mortgages and lose value from their Warrington homes under Government plans to prioritise mortgages on properties with high energy-efficiency ratings.

There are 10,790 properties in Warrington with a rating of ‘E’ or below

The Department of Business (DoB) wants to force mortgage providers to classify the energy ratings of their borrowers’ homes and put the average into a Government league table, which will be presented on the DoB’s website. Mortgage providers will then get time sensitive targets to improve their average EPC scores, punishable by fines, meaning this would increase the mortgage costs for those with low energy efficient homes.

Maybe it’s time you looked at your EPC certificate and find out how you can improve your rating? If you are a Warrington landlord or Warrington homeowner and would like to chat about your legal position or would like a copy of your EPC emailing to you, don’t hesitate to drop me a line and I will be more than happy to discuss your personal circumstances further without obligation.

So, is it right Warrington landlords should have to fork out to improve the energy performance of their rental property, yet they aren’t the ones benefiting? Also, should Warrington homeowners have to have higher mortgage payments in the future because they have a low energy-efficient home?

Let me know your thoughts.

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

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

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

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
Hamlet Homes Warrington, your local Estate Agent
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Renovating to Sell for a Profit: The Party Wall Act

If you are renovating a property in Warrington before sale, you need to be aware of the impact of the Party Wall Act and the implications for you if you don’t follow the rules. A Party Wall is a wall which sits on the boundary between two properties and includes:

• The wall between two terraced houses
• The middle wall in a pair of semis
• The boundary wall between two gardens
• The horizontal “wall” between floors in a block of flats. Here it is called a Party Structure, but the rules still apply.

If you live in England or Wales and you are doing works to your property and you share a wall (or structure) you probably need to serve a Party Wall Notice on your neighbour. The process is meant to stop disputes, but is also to help people resolve them if they do arise. Works include:

• Any work to the wall between terraced and semi-detached houses
• Any work to a shared “party structure”
• Any work to boundary walls
• Excavation works or underpinning within 6 metres of the party wall
• Loft conversions that mean cutting into a party wall
• Inserting a damp proof course into a party wall
• Making the party wall thicker or higher
• Building a second storey extension above a party wall

The Notice must include full details of the works you are doing, give your neighbour at least two months’ notice of the works starting and say what, if any, access you need across their property to get the works completed.

Works that don’t need a Party Wall Notice:

• Drilling into the wall internally to fit kitchen units or shelving
• Having the wall plastered
• Adding or replacing electrical wiring or sockets

Once you have the specification of work from your builder, or a list of the works if you are doing them yourself, you should write to your neighbour and make it clear that this is a Party Wall Notice.

They will either write back and say they are OK with everything, write back and say they don’t agree (and maybe say why), or not respond at all.

If either of the latter two, then you will need to appoint a Party Wall surveyor to represent both of you. The surveyor draws up the Award (see below). It is important to note that although the Party Wall Surveyor is instructed by your neighbour, they are not acting for you. Their role is the protect the Party Wall or Structure and they answer only to the Courts.

Your neighbour can have a different Party Wall Surveyor if you wish, the only downside to this process is that you will pay both lots of fees.

What is the Party Wall Award?

The Award is a basically description of the works, how they will be carried out and who pays the surveyor’s fees, which in this case will be you.

Why would I bother with the Party Wall Notice?

There are many occasions when people just get on with works, don’t bother serving the Notice and hope that everything goes smoothly and the works are finished before anyone has a chance to do anything about it. Some people are just averse to paying professional fees!

Once the works are completed there is nothing neighbours can do about the Notice or an Award, the rules are not retrospective. But there are advantages to you in having an Award in place:

• It massively reduces the risk of disputes as the works are done.
• Everyone has agreed upfront what the works will be and how they will be done.
• If you need access across your neighbour’s property, whether that is garden, roof, or to put scaffolding up on their property, the Award will give you the right to do so.
• If your builder damages their property during the works the Courts take a dim view if you have failed to serve Notice and put an Award in place. They have a good chance of successfully suing you for damages (and trespass if you have accessed via their property without consent). If there is an Award in place then it gives you more protection and the Party Wall Surveyor/s should be able to resolve any disputes along the way.

There is of course a lot more in the detail but if you start work and your neighbours know nothing about it, they may come and talk to you and you can sort it out amicably. On the other hand they might just go straight to their solicitor and get an injunction to force you to stop work.

The cost of that could put your profit in jeopardy.

So don’t take the risk, get a Party Wall Notice served and crack on!

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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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

Will the Warrington Property Market Crash in 2021?

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

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

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

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

Warrington house prices will inevitably ease in 2021

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

Mortgage approvals at a 13 year high

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

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

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

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

The number of people moving home in Warrington is anticipated to

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

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

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

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

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

Interest Rates are the key to the future

of the Warrington property market

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

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

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

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

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

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

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

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

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

None of these things have changed because of Covid.

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

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

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

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

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

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

How to get Organised for Moving Day

Here’s a little known fact: Many people in the UK regard a house move as one of the most stressful life experiences that they’ll ever endure.

Yes, while owning a new home is exciting, the process of moving itself isn’t something that most people look forward to. And as most people will move multiple times throughout their life, the Hamlet Homes Warrington team are here to arm you with the most useful tips you’ll need to organise yourself ahead of your next moving day.

We’re also here to tell you that it doesn’t need to be all that bad! Get yourself adequately organised for moving day, and you’ll save yourself much of the associated stress.

Here are our essential tips to help you get organised for moving day:

Start the packing process as early as possible

Let’s face it, packing can be one of the most tedious things about moving home. But, it’s like facing any chore that you dread, but that needs to be done – it’s best tackled first! The longer you procrastinate about packing, the more anxiety and stress the entire moving process will cause you.

Set yourself a timing plan for packing that’s realistic. Trust us, you’ll feel a lot calmer and more prepared if all your packing is behind you by the time moving week arrives.

For an average-size four-bedroom home, we recommend starting the packing process about six weeks before the big move day. Yes, that far in advance! This way, you’ll have enough time to properly sort through your belongings, get rid of any clutter and give away any items you don’t want to take with you.

Become label-obsessed

No, we’re not talking about clothing labels. We’re talking about good old sticky labels that you can slap onto your packed boxes. Label your boxes effectively so you can ensure that your removal company will be able to transport your things as quickly as possible and to the correct room.

So, what exactly does effective labelling involve? Well, just make sure that your writing is legible, and include a short description of what the box contains. Label all sides of the box so it can be seen from any angle. Finally, take your label game up a notch by using colour coded labels. Pick a different colour for each room, and you’ll pretty much guarantee that everything will end up in the right room. Oh, and your movers will thank you for it.

Save your old (and new) floors from damage with scraps of old cardboard

Yes, you read that right. Part of the anxiety of moving day is related to the potential damage that your home (both old and new) could face as part of the move. Get rid of that stress by taking some preventative action.

This is a lot simpler than it sounds. Simply lay down flat cardboard strips (using old cardboard boxes) and avoid dents and scuff marks caused by all the hustle and bustle of moving day. Although if you’ve hired professional movers, you will have the peace of mind that they’ll be trained on how to move without causing any damage.

Hire professional movers for the big day

The number one way to ensure that you’re super organised for moving day is to hire a professional moving company.

Although many people attempt to move without professional help, this can be a much more stressful and challenging experience. Movers can ensure that all your belongings get to your new home in one piece, and in much less time!

Not sure where to find someone? Ask us for recommendations on local professional moving companies in Warrington and get some quotes from a few companies in advance of the move. We recommend booking as soon as you know your move-in date, as popular firms can get quite booked up over peak periods.

Take some time off work for a day or two

Try to take a couple of days off work around your big moving day. This gives you a little extra time for that inevitable last-minute packing and settling in at the other end.

Searching for a home in Warrington?

Now that you’re equipped with all the tips you need to help you manage your next moving day let us help you find a home that’s worth any moving stress. At Hamlet Homes Warrington we have years of experience matching both buyers and renters with their perfect home. Get in touch today on 01925 235 338 and speak with a member of our team to kick off your house hunt.

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

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

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

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

The 2020 Review of the Warrington Property Market

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

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

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

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

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

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

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

	Average Overall Value Today	Average Price Paid in the Last Year
Warrington Detached	£350,160	£329,620
Warrington Semi-Detached	£199,230	£196,080
Warrington Town House / Terraced	£142,240	£143,870
Warrington Apartments/ Flats	£140,390	£118,150

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

	Average Value per sq. ft (internal)
Warrington Detached	£215.82
Warrington Semi-Detached	£196.73
Warrington Town House / Terraced	£153.26
Warrington Apartments/ Flats	£173.85

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

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

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

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

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

10 Frequently Asked Questions When Selling Your Home in Warrington!

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

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

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

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

How long will it take to sell my house?
Unfortunately this is similar to asking “how long is a piece of string”, with many factors influencing how quickly, or slowly, your home will sell. These include:

• Your listing price
• The condition of your home
• The condition of the local housing market
• How you market your home
• General factors such as political matters

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

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

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

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

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

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

What should I do if my house is failing to sell?
There could be several reasons why your house is not selling as quickly as you would have hoped. These include:

• Your asking price is too high
• Repair issues are putting potential buyers off
• Your property listing is not up to scratch

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

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

Other top tips include:

• Clearing away any clutter
• Applying a fresh coat of paint on the walls
• Tidying your front garden to improve your kerb appeal

Should I be present during viewings?
This is an easy one. No, preferably not! It can be very uncomfortable to listen to a potential buyer point out what they don’t like or what they would change about your home. Not to mention the fact that they may not feel comfortable talking to your estate agent about your property if you are standing right next to them!

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

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

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

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

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

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

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

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

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

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 Homebuyers Have Saved £108,550 Thanks to the Stamp Duty Holiday – Yet Many Could Miss Out

Warrington homebuyers and Warrington landlords purchasing residential property have saved £108,550 since the Chancellor reduced stamp duty on 8th July 2020, yet many more Warrington homebuyers could miss out.

My analysis of properties sold in Warrington from the Land Registry between the introduction of the stamp duty holiday on 8th July 2020 and 14th August 2020 (which is the most up to date sales data), reveals that many Warrington homeowners have saved a considerable amount of money in stamp duty. According to my research…

since the stamp duty holiday was launched, 84 Warrington homeowners have saved on average £1,292 each.

That’s a total Warrington property value of £15,927,570.

Mind you, it’s not all good news as I estimate 185 Warrington homebuyers risk missing out on stamp duty savings (worth as much as £15,000 each) due to solicitors/conveyancers and mortgage lenders struggling with demand and failing to hit the 31st March 2021 deadline.

The short-term tax relief, together with the easing of lockdown restrictions, has seen demand for Warrington property soar this summer as Warrington property buyers race to move home.

Chancellor Rishi Sunak introduced a stamp duty holiday in the summer, with the stamp duty holiday due to end on 31st March 2021. Yet, I fear the combined pent-up demand caused by…

• the post Boris Bounce
• people wanting to leave the metropolitan city centres for homes in the countryside
• property with gardens
• property with extra rooms for working from home
• and the stamp duty savings

…has created a certain amount of constipation and backlog in the Warrington property market.

I know 31st March 2021 seems an age away, however nothing could be further from the truth. The average Warrington property sale was taking 19 weeks between the offer price being agreed and the keys/monies handed over BEFORE THE POST-LOCKDOWN. So with as many as 40% to 50% more Warrington homeowners in that same sales pipeline of agreeing the offer and the legal and finance to be sorted as we speak, solicitors/conveyancers and mortgage lenders are really struggling with demand for their services, meaning the average time will increase. Hence, I believe as many as…

185 Warrington people could miss out on the 

£239,070 stamp duty tax savings. 

There is time left to sell and legally complete your Warrington property sale before 31st March stamp duty deadline if you put the property on the market now with a realistic asking price, a decent marketing plan and razor sharp reflexes when it comes to the legal and mortgage work.

Yet with 40% to 50% more home movers in the system, those looking to sell their Warrington home should be very suspicious of agents being too optimistic on their initial asking price (many estate agents get a commission to put a property on the market, meaning they over-egg the pudding on the suggested asking price to flatter you, only to badger you to reduce the asking price weeks later).

Those wasted weeks at an inflated asking price will mean the difference between you securing a buyer and you then buying your next Warrington home with or without the stamp duty savings, which are up to £15,000 per home move.

And whilst many Warrington buyers seem ready, willing and able to pay top dollar prices for Warrington properties that match their changed post-lockdown home needs, speaking privately to many Warrington agents, some Warrington homeowners’ price expectations for their Warrington homes are now becoming too optimistic, meaning they will undoubtedly lose out.

We also can’t forget as many as 1 in 5 mortgage surveys are being down valued by the surveyor, meaning unless all parties are willing to negotiate, the sale falls through and the homeowner has to go back to ‘Square One’.

My best piece of advice for those currently sold and in the sales systems with lawyers and mortgage brokers is to speak to your solicitor and mortgage broker every single week and ask if there is anything you need to do to ensure the sale proceeds smoothly and expediently. Also, if you are asked for any information from your solicitor or mortgage broker in between times, drop everything and respond quickly to their request. The odd day here and there will make all the difference.

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.

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 2nd & 3rd Time Buyers Finding It Tougher (and Slower) to Move Up the Warrington Property Ladder

Post lockdown, the need for Warrington families who want bigger homes has meant Warrington homebuyers must now to pay considerably more to trade up to that larger home…

One thing that has come out of lockdown has been the inexorable movement of Warrington households wanting to upsize to a larger home. Often considered to be first time buyer properties, the smaller 1st step on the property ladder one and two bedroom properties are selling quite well yet demand for those properties on the 2nd and 3rd step rungs on the Warrington property ladder (i.e. the three or four bedroom homes) has been even greater.

This demand has been driven by Warrington buyers looking for more living space, especially those looking for an area or room to work from home (be that a bedroom, reception room or even an outbuilding converted into a study).

The average asking price of a 3 bed Warrington home is £163,200, whilst for a 4 bed Warrington home it stands at £253,100

As you can see, quite a jump for an extra bedroom! The heightened contest for 2nd and 3rd step Warrington homes for that extra bedroom has pushed demand to a record in October for those looking to take the next step up the ladder. Historically, as a family and its household income grow, the need for more space has permanently been the No.1 reason for moving home, yet now there is a new need for additional space to facilitate people working from home. This means not only do we have growing families wanting larger Warrington homes, there are also the people needing the same larger homes for space for a home office. Therefore, looking at the current stats, as you can see, the Warrington property market is doing quite well…

70% of all 3 bed and 63% of all 4 bed homes

in Warrington are sold (subject to contract)

Roll the clock back to pre-Covid and ask any Warrington homeowner who had enough bedrooms for their children if they wanted an additional bedroom, and most homeowners would say that was very much a ‘nice to have’, yet not a ‘must have’. With us all being cooped-up over the spring this year, demand for additional rooms is at a high, with those presently looking for their next larger Warrington home are probably going to find that only offers close to (if not sometimes over) the asking price will be accepted.

Even though no properties sold during lockdown, putting the Warrington (and UK) property market on hold for many months, many more people buying their next Warrington home will have more than made up for it since lockdown was lifted as the portals have stated if the UK property market remains at its existing trajectory, then the number of properties sold YTD by the end of October 2020 will be greater than YTD October 2019.

Yet all these properties sold are causing another issue. Just because a property becomes Sold Subject to Contract (SSTC) doesn’t mean the property is actually “sold”. Before going into Covid, it was taking approximately 19 weeks from agreeing a sale price (and instructing lawyers) to completing the sale. Yet, because we are nationally running at 140% to 150% of properties SSTC (than where we normally are at this time of year), many of my estate agents colleagues are having to manage expectations with buyers and sellers, and tell them that the date they are going to move will take a little longer.

The elephant in the room is that the temporary stamp duty holiday ends on the 31st March 2021

It sounds an age away, yet trust me, nothing could be further from the truth. Adding an extra month for the additional homes in the bottleneck means even if the sale of your Warrington home was agreed today, that would take us to the 3rd week in March ... that’s cutting it very close for the stamp duty holiday.

It is so fundamental for buyers and sellers of Warrington homes to work meticulously with their estate agent, solicitor and mortgage lender. For example, there are less staff in the local authorities to do the local searches, bank staff are working from home meaning mortgages are taking much longer to get approved, and conveyancer/solicitors are snowed under with work. Therefore, if you get a document that needs filling in, are asked to provide documents, pay disbursements or questions need answering, do it immediately and without delay. A day here and day there will snowball and could mean you miss the stamp duty holiday … and that could cost you thousands and thousands of pounds.

The bottom line is that we haven’t seen this sort of pressure on the UK property market since 1987, when dual-MIRAS was abolished. Now, as we are slowly starting to come out of Covid, with many legal and banking staff working remotely or still on furlough, the perfect storm has occurred with unprecedented demand from buyers looking to move post lockdown. The best advice I can give is, as soon as you put your property onto the market, find a solicitor that has the capacity to work with you, then instruct that solicitor to start work immediately to prepare the paperwork, so once you have a buyer, things can move more smoothly and quickly. The last thing you want is to lose out on saving thousands of pounds by missing the stamp duty holiday by a whisker.

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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