Category: Blog

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The Art of Home Staging: Why It Truly Counts in Selling Your Property

In the competitive real estate market, first impressions matter, and staging a property is not just a luxury but a strategic necessity. Home staging, the process of preparing a residence for sale by showcasing its best features, has evolved into a crucial aspect of the selling process. In this blog post, we’ll explore the reasons why staging a property counts and how it can significantly impact your chances of a successful sale.

1. Enhances Visual Appeal

One of the primary reasons to stage a property is to enhance its visual appeal. Staging allows you to highlight the property’s strengths and create a visually appealing environment that potential buyers can envision themselves living in. From furniture arrangement to decor choices, staging transforms spaces, making them more attractive and inviting.

2. Facilitates Emotional Connection

Buyers often make decisions based on emotions. Staging helps create an emotional connection between the potential buyer and the property. By presenting a well-staged home, you are not just selling a house; you are selling a lifestyle. Thoughtfully arranged furniture and decor can evoke positive emotions, making it easier for buyers to imagine themselves living in the space.

3. Showcases Functionality

Proper staging allows you to showcase the functionality of each room. By arranging furniture in a way that highlights the purpose of each space, potential buyers can easily understand the flow and potential uses of different areas in the home. This clarity can be a deciding factor for buyers who are trying to envision how they would utilize the available space.

4. Sets the Right Tone

Staging helps set the right tone for the property. Whether you’re aiming for a cozy family home, a modern urban apartment, or a luxurious estate, staging enables you to convey a consistent theme throughout the property. This cohesive presentation creates a memorable experience for potential buyers and sets the property apart in their minds.

5. Maximizes Perceived Value

A well-staged property can create a sense of luxury and quality, maximizing the perceived value in the eyes of potential buyers. Thoughtful decor choices and attention to detail can make a property feel more upscale, potentially justifying a higher asking price. Investing in staging can yield returns by influencing buyers to perceive the property as a premium offering.

6. Accelerates the Selling Process

Staged homes tend to sell faster than their non-staged counterparts. The enhanced visual appeal, emotional connection, and perceived value contribute to a more attractive listing. A quicker sale not only reduces the time and effort invested in marketing but also avoids the potential challenges associated with a property lingering on the market.

7. Attracts Online Attention

In today’s digital age, the first encounter many potential buyers have with a property is through online listings. Staged homes photograph well, capturing the attention of online browsers. High-quality images of a beautifully staged property can generate more interest, clicks, and inquiries, ultimately leading to more showings and a higher likelihood of a successful sale.

In conclusion, staging a property is not just a superficial aspect of the selling process; it is a strategic investment that can significantly impact the success of your real estate transaction. From creating an emotional connection to accelerating the selling process, the benefits of staging are multifaceted. So, if you’re considering selling your property, remember that staging isn’t just about making it look good; it’s about making it irresistible to potential buyers.

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3,256 Trafford Properties Remain Empty

Leaving 6,735 People on the Council House Waiting List…

There aren’t enough homes in Sale.

The answer is clearly to build more property in Sale (and Trafford as a whole) – but that, unfortunately for those badly seeking to buy or rent a home in Sale, takes a lot of time and massive amounts of money. So, what other solutions are there?

Talking to a Sale client of mine recently, the subject of the housing crisis was mentioned. They suggested that all the empty properties in Sale could be the solution to this problem. On the face of it, it seems so obvious. Now quite interestingly, I had recently done some research on this topic, which I want to share with you (as I did with them).

The most recent set of figures from 2022 state there are 3,256 empty homes in the Trafford Council area.

So it begs the question, why not put these homes back into the housing system and help ease the Sale housing crisis?

Whilst they stand empty, 6,735 Trafford families are on the Council House Waiting List for council houses.

Nationally, the picture is very similar with 1,206,376 families on Council house waiting lists with 676,304 homes empty.

Surely, we can all agree that property left empty for many years isn’t morally right?

… yet a different story emerges when you look deeper into the numbers.

Every October on one specific day, each local authority must report every property that is empty, even if it’s only been so for a week.

So many of these Trafford properties are either awaiting new homeowners or, in the case of rental properties, new tenants. Also most certainly, some properties are being refurbished and renovated, some are deceased estates, while other properties have homeowners that have moved out and are in the process of being sold (e.g. a part exchange property).

Of those 3,256 Trafford homes lying empty, only 1,071 properties were empty for more than six months.

The fact is that the number of genuinely long-term empty properties is only a tiny drop in the ocean of the 96,269 properties in the area covered by Trafford Council and, even if every one of those empty homes were filled with tenants tomorrow, it would only meet a small fraction of Sale’s housing needs.

So, what does this mean for all the homeowners and landlords of Sale?

This scarcity of available homes contributes to the maintenance of high rents, which presents a favourable situation for Sale landlords who are investing in buy-to-let properties.

Simultaneously, it also serves to keep Sale house prices at a relatively elevated level.

The implications of this situation are particularly evident in the context of Sale’s rental market, where the demand for properties is exceptionally high.

Due to the challenges faced by young individuals in affording homeownership and the financial constraints limiting the construction of new council houses by local authorities, the growth of the rental market becomes an undeniable reality.

Consequently, landlords predominantly focus their investments on the lower end of the housing market, such as starter homes, further fortifying property prices.

This cyclical pattern sustains the entire market as sellers, propelled by the increasing demand, progress up the property ladder, thereby enabling others to purchase homes and continuing the process in a chain-like manner.

These are indeed interesting times in the Sale property market!

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Evolving Sale Property Preferences: A Shift in Types of Sale Properties Purchased Over the Last Two Years

The Sale property landscape is constantly evolving, shaped by societal, economic and cultural factors.

The type of properties people have bought in the last few years since Lockdown One has undergone some notable changes, reflecting shifting preferences and lifestyle choices.

This article explores the transformations in property purchasing trends over the last two years compared to the long-term, almost three-decade average, with a focus on Sale detached houses, semi-detached houses, terraced houses and apartments.

Sale Detached Houses: A Shift Towards Modernity

Detached houses, long considered the epitome of homeownership, have witnessed a transformation in Sale buyer preferences. They still hold significant appeal, particularly for Sale families seeking privacy and ample space, the demand for Sale detached properties in the last couple of years has decreased, when compared to the previous average of the last three decades. This shift started before lockdown and can be attributed to several factors, including changing demographics, the way people live, varying land costs and evolving lifestyles that prioritise convenience and urban living.

Between 1995 and 2020, 3,365 detached homes sold in the Sale area, representing 16.0% of all the property sales in those 26 years.

In the last two years (2021 & 2022), 269 detached homes sold in the Sale area, representing 12.2% of all the property sales in those 2 years, a proportional drop of 23.4%.

Sale Semi-Detached Houses: Balancing Space and Affordability

Sale semi-detached houses have maintained a relatively stable position in the property market over the past three decades, striking a balance between the space offered by detached houses and the affordability of terraced houses. While their popularity has seen minor fluctuations, their appeal to both Sale families and young professionals looking for more spacious living arrangements remains consistent.

In recent years, there has been a noticeable increase in demand for well-presented mature Sale extended semi-detached houses as homeowners increasingly seek larger properties that accommodate work-from-home setups and additional living spaces for multi-generational living. This trend suggests a growing emphasis on both comfort and adaptability within the modern Sale home.

Between 1995 and 2020, 9,907 semi-detached homes sold in the Sale area, representing 47.0% of all the property sales in those 26 years.

In the last two years (2021 & 2022), 930 semi-detached homes sold in the Sale area, representing 42.3% of all the property sales in those 2 years, a proportional drop of 10.1%.

Sale Terraced Houses: Embracing Urban Living

Sale terraced houses have witnessed a resurgence in popularity with many new home builders utilising the modern ‘town house’ in a three-storey format. These houses in modern suburban areas provide a contemporary take on this traditional property type, attracting younger Sale buyers looking for a low-maintenance lifestyle without sacrificing space (as they are built over three floors).

Then we have the Victorian terraced home which offers a blend of affordability, convenience and a sense of community tracing its history back over 100+ years. Young professionals, couples and small families are attracted to the charm and character of these properties, the generous square footage and close to the town centre location, often means the need for a car is reduced.

Between 1995 and 2020, 4,368 terraced homes sold in the Sale area, representing 20.7% of all the property sales in those 26 years.

In the last two years (2021 & 2022), 554 terraced homes sold in the Sale area, representing 25.2% of all the property sales in those 2 years, a proportional increase of 21.5%.

Sale Apartments: The Rise of Vertical Living

Perhaps the most significant transformation in property type preferences over the past three decades can be observed in the increased popularity of apartments in the UK. Rapidly rising land costs and a growing desire for low-maintenance living have propelled the demand for apartment living to new heights.

Apartments offer a range of benefits, including affordability, security, access to amenities and a lock-and-leave lifestyle. Millennials and young professionals are drawn to the convenience and vibrant urban environments that apartments often provide. Additionally, the growing focus on sustainable living and reduced carbon footprints has further fuelled the demand for high-density housing options. Also, the issue of cladding which has become a great worry is hopefully on its way to being sorted.

Between 1995 and 2020, 3,429 apartments sold in the Sale area, representing 16.3% of all the property sales in those 26 years.

In the last two years (2021 & 2022), 447 apartments sold in the Sale area, representing 20.3% of all the property sales in those 2 years, a proportional increase of 24.8%.

This is particularly interesting when we compare the Sale stats to the national picture. Detached houses have seen an increase in demand from 34% of sales a decade ago to 39% last year, semi-detached houses have maintained their appeal and increased from 26% to 28% in the last decade. Terraced houses have witnessed a drop from 26% a decade ago to 21% last year and finally apartments have slightly increased from 11% to 12%.

The property preferences in Sale have experienced notable shifts over the past two years compared to the long-term average of the last three decades. As Sale’s property landscape continues to evolve, it is crucial to analyse these shifting preferences to understand the needs and desires of potential Sale homeowners (and tenants).

Of course, detached houses remain a peak of home ownership, yet as the Sale market is adapting to cater to changing demographics, urbanisation and evolving lifestyles, this might start to change in the coming decade.

By recognising and responding to these trends, homeowners, buy-to-let landlords and planners and developers can ensure that Sale’s property market continues to thrive and meet the demands of the future.

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6 Expensive mistakes every first-time buyer should avoid

Embarking on the journey of buying your first home can be daunting, but it doesn’t have to be filled with costly mistakes.

With proper planning and a few precautions, you can avoid the common pitfalls that many first-time buyers encounter.

Here are six mistakes to watch out for and how to steer clear of them:

  1. Neglecting to obtain an agreement in principle

    Before you dive headfirst into house hunting, take a moment to assess your mortgage options. Obtain an ‘agreement in principle’ from a mortgage provider, also known as a ‘decision-in-principle’ Or ‘mortgage promise’. This certificate showcases the amount you’re likely to borrow, offering a realistic idea of your budget. Not securing one could lead to disappointment if you find a dream property but can’t secure the necessary loan. If you need any help and were wondering how to navigate the mortgage process effectively? Our team of experts can guide you and help secure an agreement in principle.

    2. Underestimating the time it takes to get a mortgage

    Be aware that there isn’t a fixed timeframe for mortgage approval. While most applications are processed within 18 to 40 days, delays can occur. Start your mortgage application as early as possible to avoid rushing into an offer on a home.

    3. Choosing the wrong solicitor

    The difference between a good and bad solicitor could be the difference between you moving into your home in 14 weeks instead of 23 weeks. Ask us and we will tell you who is the best solicitors.

    4. Failing to research the area of you are looking in

    Before you start viewing, define your priorities for the area you wish to live in. Consider factors such as transportation links, green spaces, primary schools, and amenities. Understanding your needs will streamline the selection process. If possible, spend time in unfamiliar areas you’re interested in to get a sense of the atmosphere and assess transportation links.

    5. Purchasing a ‘non-standard’ property

    Certain property types may complicate obtaining a mortgage. Lenders may hesitate to approve loans for flats above shops, areas of high-density renting, or commercial premises due to potential issues like noise, smells, and security concerns beyond the owners’ control. New-build homes may also have stricter lending criteria. If you’re considering a non-standard property, gather as much information as possible and seek expert mortgage advice to strengthen your application. If you are unsure about the eligibility of a specific property? Our team can provide valuable insights and help you navigate the complexities of mortgage approval.

    6. Not asking enough questions during property viewings

    While it’s tempting to make an offer on the first seemingly perfect home, rushing in blindly can result in costly renovations and long-term expenses. Prepare a list of questions to ask during viewings. Test windows, doors, lights, and water pressure, and don’t be afraid to look beyond furniture for any hidden defects. Inquire about the sellers, their tenure at the property, and their motivation for moving. Knowing how long a property has been on the market can also be advantageous, as sellers might be more open to accepting lower offers for a quick sale. If you need guidance on what questions to ask during property viewings? Our experienced estate agents are here to help and provide the necessary support.

    Remember, buying your first home doesn’t have to be overwhelming.

    Avoid these common mistakes and reach out to us if you have any concerns.

    We’re here to assist you throughout the process, ensuring a smooth and successful journey into homeownership.

    Contact us today on 0161 3273 161 to receive expert advice tailored to your unique situation.

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    Sale Property Market Update: February 2023

    • With the Bank of England raising interest rates and inflation high, what is happening in the Sale property market?
    • Are properties selling in Sale? And if so, what is selling?
    • What will happen to the value of your Sale home?
    • Read the article to find out what is happening to the Sale property market.

    As we enter February, the Sale (and British) property market is full of mixed messages.

    Whilst the Bank of England increased the base rate nine times in 2022, meaning they are now at 3.5% (3% higher than 12 months ago), mortgage rates are now dropping.

    The Sale property market rocketed over the last few years because of the imbalance of the number of properties for sale versus the demand, with many more people looking to move home than there were properties available.

    Now, as we are over the first month of 2023, we are experiencing a steadier Sale housing market, where homebuyers have the time and opportunity to ensure they find the right home for them.

    The days of 50 viewers per property on the first weekend of marketing, frenzied Sale buyers outbidding each other by increasing their offers by tens of thousands of pounds over the asking price has become the exception and not the norm.

    I often get asked my thoughts on the Sale property market (hence these blog articles) and at this time of year, I get asked my forecast for the year ahead.

    The one big thing I have noticed is the imbalance of what is coming on the market for sale versus what is selling.

    For example, 38.2% of properties that came on the market nationally in November and December 2022 had an asking price of £250,000 or less, yet 45.6% of the properties sold subject to contract since 1st January 2023 have been £250,000 or less.

    That doesn’t sound like a lot, yet it makes a massive difference to the property market. 

    However, it’s very easy to look at national averages, regional averages and, of course, Sale averages. Yet the property market is just one market nationally, as there isn’t just one Sale property market.

    However, the same pattern is seen in the higher-priced Sale properties. These higher-priced properties are selling more slowly than the lower-priced Sale properties. Therefore, the need for those larger Sale properties to be more realistic in price is paramount to stand out from the crowd, especially with the next point.

    Evidence suggests there is a growth of Sale buyers, who are looking to find a home before putting theirs onto the market. This was unthinkable last year, yet as the Sale property market returns to normality, this will be seen more and more.

    What are my thoughts?

    Firstly, the time scale of how long it will take to sell a Sale home.

    I expect to see the time it takes to sell a Sale home increase from 34 days in 2022 to a more ‘normal’ housing market of around 65 days.

    Secondly, the imbalance of the Sale property market.

    A greater number of larger homes in Sale are coming on the market because (as mentioned recently in a previous blog post) of the higher number of mature homeowners looking to downsize. This is because these larger homes have become much more expensive to heat, and as many of the occupants are on fixed incomes with their pensions, they are downsizing to cut costs.

    Thirdly, that brings me to talk about energy efficiency.

    Many buyers have started to ask about a property’s Energy Performance Certificate (EPC) rating. I recommend to Sale homeowners considering moving in the spring or summer to have an EPC done on their property now, as there may be points that could easily be rectified and improved from one EPC rating band to another.

    This would mean you will get a lot more interest and a better price for your property. If you need any help or guidance in organising an EPC on your Sale property (even if you are not selling for six/twelve months), do not hesitate to me give me a call.

    So, what is happening in the Sale property market in terms of new properties (aka new listings) and what is selling?

    64 properties have sold (STC) in the Sale area since 1st January 2023 (Sale being M33).

    However, it’s essential to look at what is selling in Sale, and the most active price range is the £400k to £500k range, where 14 properties have been sold subject to contract (representing 21.8% of sales).

    Looking at what is coming onto the market in the same time frame …

    83 properties have come onto the market in the Sale area since 1st January 2023.

    Interestingly, the price range with the most listings is the £400k to £500k range.

    This means Sale is bucking the national trend (mentioned above) where nationally, the lower to middle property market is where the sales are, but the properties coming onto the market are slightly higher in price, yet it’s the same in Sale.

    Any Sale homeowners with properties in price ranges that aren’t selling so well need to be ‘on point’ to stand out from the crowd regarding their marketing, be spot on regarding their pricing (compared to the growing competition of other larger homes for sale) and now more than ever, their EPC rating (especially if they are on the cusp between two EPC bands).

    Before I conclude, you might wonder why I have not mentioned Sale house prices.

    Well, what will happen to Sale house prices in 2023 is something I am not sure of.

    (Yes, I know that level of frankness is strange coming from an estate/letting agent).

    I know the prices being achieved for homes in Sale in the spring of 2022 (when everyone was out bidding each other) are not being achieved today. It all depends how you look at it.

    Are Sale house prices dropping or are they just returning to normal? I would say the latter.

    However, looking at house prices as a ‘bellwether’ for the health of the Sale property market has flaws.  

    Many economists and property market commentators believe transaction numbers (the number of properties sold) give a more accurate and truthful indicator of the property market’s health than just house values alone.

    The reason is three-fold.

    Firstly, most people also buy a home when they sell their own, so if Sale property values drop by 10% or rise by 10% on the one you are selling, it will do the same on the one you are buying – meaning to judge the health of a property market on house prices is very one dimensional.  

    Secondly, as most people move up market when they do move home, if the price of the one they’re selling might not be as much as they would’ve achieved in 2022 (if they drop), the price that they will pay on the one they want to buy will be lower. Thus, it will cost them less to move upmarket!

    E.g. Last year, your Sale home was worth £400,000, and the one you wanted to buy would have been £750,000. Let’s say Sale house prices did drop 10% in 2023 (which I don’t know if they will); your home would be only worth £360,000. Yet the one you want to buy would now be worth £675,000. So last year, it would have cost £350k to move, but if Sale house prices drop 10%, the move would cost £315k, saving you £35,000.

    Third and finally, moving home is a human thing. Property habitually delivers a robust emotional connection with homeowners – a connection that few would attribute to their other investments like their stock market investments or building society savings passbook.  

    Moving home could be described as a human journey, moving from one chapter of one’s life to another.  

    Therefore, when people do move home, it shows they are moving forward in their lives, which gives a great indicator of the property market’s health.

    It’s going to be an interesting year for the 2023 Sale property market.

    My opinion. Do what is suitable for you, your family and your finances.

    Ignore the newspapers and look at the facts in hand and if you want a frank chat about the Sale property market, irrespective of whether you want to sell or not, call me. I might not tell you what you want to hear, but I will tell you what you need to hear.

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    Why Aren’t Liz and Rishi Courting Lymm’s Generation Rent?

    With the cost-of-living crisis beginning to hit, the 20 and 30-somethings of Lymm urgently need the help and support of the Government to help them get on the property ladder.

    For the last few weeks, we have listened to the debates and hustings of Liz and Rishi. Between them, they have told us how they are going to stop building on the green belt, slash taxes, outbid each other on the number of refugees they are going to deport and push back against WOKE culture wars, but what are they doing for the 20 to 30-somethings of Lymm?

    Dubbed ‘Generation Rent’ by the press, desperate to get on the property ladder, this is an open goal for any candidate to obtain more votes to become the next Prime Minister.

    Yet only 16% of the c.200,000 Tory membership is aged 18 to 34

    whilst 47% of members are aged between 55 and 74.

    Therefore, it’s not a surprise that neither Liz nor Rishi aren’t speaking daily about the cost of petrol for the daily commute, rising childcare fees or the lack of opportunities for first-time buyers to purchase their own properties.

    (For balance, 16% of Labour’s members are 18 to 34, 20% for the Lib Dems and 16% for the SNP).

    Everyone is feeling the effect on their household budgets with the rise in energy bills. Yet, it is the younger generation (i.e., Generation Rent) that are having to cope with the frenzy of rising energy costs the most.

    Whilst increasing energy prices will affect all households across the country, younger (and less affluent) households are more prone to be disproportionately affected than those on the lowest incomes (i.e., Generation Rent).

    In the financial year ending in 2020, the least well off 25% of households spent 5.59% on energy compared to 3.9% for the average UK household. With 2023 energy bills set to be triple those figures, energy bills for those in the lower quartile will rise to around 16.8% of their household budget.

    And let’s look at the housing element of the ‘Generation Rent’ household budget.

    The average rental of a Lymm property in the summer of 2020

    was £1,147 PCM; by the summer of 2021, itwas £1,186 PCM,

    and today, it is £1,296 PCM.

    Overall, Lymm rents are 9.3% higher than a year ago and 13.1% higher than two years ago.

    This is the fastest annual rate of rental growth since records began in 2006. This increase in rents isn’t standard. Before 2020, I would have expected to see this level of rent growth over a seven-to-ten-year period – not two years. Good news for Lymm landlords, yet not so for Lymm tenants.

    Why have rents increased so much in Lymm?

    It comes down to fewer rental properties and existing Lymm tenants not moving as much.

    There are 41 fewer rental properties in Lymm than five years ago, leaving only 724 private rental properties in Lymm.

    9 out of 10 rentals come onto the market because the existing tenant is moving. Yet, because there are fewer Lymm rental properties and the asking rents for those are much higher than their current home, many Lymm tenants are not moving, exasperating the issue even further.

    Today, I looked on Rightmove, and there were only 11 properties available to rent. I would have expected that to be over double that pre-pandemic.

    Neither candidate has been silent on the topic of homeownership for the young.

    Rishi Sunak said he would stop building on the greenbelt. This, however, would not help Generation Rent massively.

    Liz Truss has pledged to help more renters buy their first home by stating she will ensure tenant’s rental payments could be used as part of mortgage affordability assessments. This is important as the mortgage payments can be 10% to 20% lower than the rental payments.

     

    Tied in with new relaxed mortgage affordability rules announced by the Bank of England in early August, this is undoubtedly a step in the right direction to help Generation Rent.

     

    Truss also plans to scrap the red tape holding back housebuilding and give local populations more say on developments. However, when Boris Johnson suggested something similar a few years ago, the policy was quietly dropped after the Liberal Democrats used this against them resulting in the Tory’s resounding by-election defeat in 2021 in Chesham and Amersham. So, by the end of the first week of September, we will know who the Prime Minister will be. Whoever gets the job has a gigantic task on their hands. I wish them luck and ask them not to forget the younger generation and their aspiration to be homeowners.

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    Will The Cost-of-Living Crisis Mark the End of the Booming Sale Property Market?

    Sale property prices have increased by 17.6% over the last two years.

    Sale house prices have risen on the back of several things, including changes in how people see their homes and how they live and work (i.e. working from home), a lack of properties on the market and government tax incentives (the stamp duty holiday in 2020).

    Yet, the tide could be beginning to turn as the number of houses coming on the market is increasing as supply is starting to catch up with demand – in Q1 2022, 389,811 properties came onto the market in the UK compared to 425,295 in Q2 2022. One would typically expect Q1 to be larger than Q2 in average years.

    Yet some commentators are saying one thing that could stifle this growth is the cost-of-living crisis.

    I wanted to delve deeper into what was happening in Sale instead of reading headlines in the newspapers. Let me start with average incomes.

    The average Sale household income is £683.30 per week, compared to £578.00 in the North West region and £613.10 nationally.

    Roll the clock back twenty years to 2002, and the average Sale household income was £424.90.

    I wanted to go into greater detail a few weeks ago; I stated that mortgage costs for first-time buyers were much lower today (as a percentage of household income) than in 1989 and 2007. Many of you commented on social media or sent me messages asking what happened to other household bills.

    In 1989, 16% of people’s household income went on housing (rent or mortgage) compared to 17.5% in 2021.

    Food represented 19% of people’s spending in 1989, compared to 14.4% in 2021. 

    Also, gas and electricity were 6% of household income in 1989 compared to 4.81% in 2021. (although that was before we saw the recent energy price hikes).

    Interestingly, the UK household spent 15% of their monthly income on leisure activities in 2021, compared to 10% in 1989.

    Household goods and services (i.e. household appliances, insurance etc.) have risen from 11% in 1989 to 14.9% in 2021.

    Before I leave these stats, I had a peek at the 1957 stats (the earliest stats available), and in that year, food represented 33% of the household income and tobacco 6% (today, it’s 2.34%).

    So, compared to 1989, the big-ticket items of housing, food and fuel combined have gone down from 41% to 36.7% of the household income, whilst leisure has increased from 10% to 15%.

    The fuel element of household bills will rise to around 11% to 12% of household income, and I suspect the leisure budget will be hit the hardest to pay for that. We are seeing food inflation of around 10% to 15%, meaning that food will go from its current 14.4% of household income to around 16% to 17%.

    It’s going to be tough, especially for those people in rented accommodation who may not earn near the average wage yet, as they have similar fixed costs for gas, electricity and food.

    Next, let me look at the inflationary effects on housing costs.

    A rise in the base rate will, in theory, slow inflation by reducing consumer demand. In the short-term, this increase in the base rate will increase mortgage rates, thus adding fuel to the fire of the cost-of-living crisis by growing mortgage costs.

    Those Sale homeowners on tracker or variable rate mortgages will instantly increase their mortgage payments.

    Encouragingly though, just under 17 out of 20 people are on fixed-rate mortgages, the majority on 5-year fixed rate deals, so their housing costs won’t go up significantly in the short-term.

    This will alleviate some of the interest rate effects, making it more challenging and expensive for new borrowers like first-time buyers.

    However, as I have explained in previous articles on the Sale property market, many Sale landlords have been sitting on their hands in the last couple of years as owner-occupiers have outbid each other in buying their next ‘forever home’. If there aren’t going to be so many Sale first-time buyers, then I suspect we might see more Sale landlords coming out of the woodwork and buying again.

    This is especially true as investing in buy-to-let in inflationary times is an excellent hedge to protecting the buying power of your hard-earned savings (drop me a message if you want to read that article).

    In conclusion, although the amalgamation of the Sale house price rises in the last two years, the increasing interest rate rises, and the continuing cost-of-living crisis, there is no doubt the momentum in the Sale housing market will be slower in the next 12 months compared to the last 24 months. Nevertheless, I anticipate Sale house price growth will ease (and, in some months, be slightly negative). A better bellwether of the state of the Sale property market is the number of people moving house (i.e. the transaction levels).

    I expect transaction levels to be lower in the latter part of this year and the first half of 2023, yet they are most likely to stay close to the long-term average. The boom is over, yet it shouldn’t be a bust situation.

    What are your thoughts on this? Let me know.

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    How Will Rising Inflation Affect the Lymm Property Market in 2022?

    The UK is currently experiencing its highest inflation rate since the early 1990s. This increase in prices has primarily come about by the combination of an increase in demand for goods and services from consumers following lockdown last year together with global supply chain disruptions.

    Most economists weren’t too concerned about this increase in the inflation rate as the very same thing happened in the early 1990s following the Credit Crunch with a similar rise in demand and supply chain issues. Thankfully, back in the early 1990s, inflation returned to lower levels quite quickly. However, the situation in Eastern Europe now could change matters.

    So, let me look at all the factors and what it means for the Lymm property market.

    The crisis in Eastern Europe has sparked even further rises in crude oil, gas and grain prices as pressure on supply chains around the world increases.

    In my previous articles, I suggested UK inflation would rise to around 7% in the spring and drop back to 5% in the autumn and as we entered 2023, be approximately 3% to 4%.

    Yet, with these issues, inflation could rise to 8% to 9% by late spring and still be around 6% to 7% in autumn, well above the Bank of England’s target of 2%.

    With Lymm wages rising at only 3% to 4% and inflation at 7%+, Lymm household incomes, in real terms, will fall.

    This is because ‘real’ UK household incomes characteristically have been the most consistent lead indicator of growth (or a drop) in house prices. This is because growing inflation erodes the value of money you earn, which reduces its buying power. When the cash in your pocket has a lower spending power, people tend to spend less when they buy (and rent) a home (and vice versa).

    Next month, Income Tax thresholds will be frozen, and National Insurance contributions are increasing. Collectively, all these issues will create a drop of around 2% to 2.5% in the real disposable incomes of Britain’s households in 2022 (real disposable income – somebody’s take-home wages after tax and then the effects of inflation are considered).

    Will Lymm people be more anxious to spend their money?

    With less money in people’s pockets, people’s inclination to spend the money they do have could also be curtailed. People’s savings are at an all-time high, yet many will decide to sit on the cash, instead of spending it, especially as consumer confidence has dropped to minus 26 on the GfK index (whatever that means – but in all seriousness though – more on that below).

    All this can only mean there is going to be a house price crash.

    It’s all doom and gloom! … Or is it?

    My heart goes out to people caught up in the awful humanitarian crisis in Eastern Europe. Yet, I respectfully need to put that to one side for just a moment for the purpose of this article.

    This blog is about the Lymm property market, and Lymm people want to know what will happen to the Lymm property market.

    In the first half of the article, I looked at the impending fall in real disposable incomes of 2% to 2.5% in 2022. I appreciate it’s going to be tough for many families in Lymm. Yet, it is always important to consider what has happened in previous times.

    1982 – a drop of 2.3% in real disposable income

    1992 – a drop of 3.7% in real disposable income

    2008 – a drop of 5.8% in real disposable income

    Yes, it’s going to be tough, yet we got through 1982, 1992 and 2008 – and so we shall in 2022/23.

    Next, the price of petrol is very high compared to a year ago.

    The average price of unleaded petrol is £1.61/litre today, quite a jump from the £1.21/litre a year ago. But, here is an interesting fact, petrol was a lot more expensive (in real terms) in 2011 than today. In TODAY’s money, a litre of unleaded petrol in 2011 would be the equivalent of £1.79/litre.

    We have some way to go before we get to those levels – and again, the Lymm economy (and property market) kicked on quite nicely after 2011.

    What are Lymm people spending on their rent and mortgages?

    Housing costs – owner occupiers were spending on average 17.3% of their household income on mortgages in 2015, yet in 2021 this had risen, albeit to 17.7% – not a huge increase.

    Council house (social) tenants have seen a drop in their rent from 29.2% in 2015 to 26.7% in 2021, whilst private tenants from 36.4% in 2015 to 31.2% in 2021.

    Interesting that private tenants are proportionally 14.29% better off in 2021 than in 2015.

    How we spend our money – the average UK home spent 4.2% of their household income on energy in 2021, and that is due to rise to 6.3% after April (and probably 7% in October). Yet, as a country, we spend 9% of our income on restaurants and hotels and 8% on recreation and culture. As with all aspects of life, it will mean choices, and maybe we will have to forego some luxuries?

    Just before I move on from this aspect of the article, again I appreciate I am talking in averages. Many people with low incomes suffer from fuel poverty and they will find the increases in energy prices hard – my thoughts go out to you.

    Interest rates – higher inflation is generally brought under control using higher interest rates, meaning mortgage payments will be higher.

    First, 79% of homeowners with a mortgage are on a fixed rate, so any rise won’t be instantaneous. Yet, there will be a bizarre side effect from the issues in Eastern Europe. Surprisingly, though the current situation in Eastern Europe, by its very nature, will bring greater UK inflation, it will also probably defer the Bank of England raising interest rates. This means mortgage rates won’t increase as much as the bank won’t want to exacerbate any pressures to the UK economy in 2023/24 caused by the conflict.

    The stock market had priced an interest rate rise to 2% by the end of 2022. I suspect this will now be no more than 1% to 1.25% by Christmas, slowly going up in quarters of one per cent every few months. The crisis in Eastern Europe might even come to be seen as a defence for higher inflation throughout 2022, all meaning everyone’s mortgage will be less.

    Next, looking at Consumer Confidence Indexes – these indexes are fickle things. I prefer to look at the Organisation for Economic Co-operation and Development Consumer Confidence Index as it has a larger sample range and a longer time frame to compare against. Looking at the data from the mid 1970s, the drop in consumer confidence is big, yet nothing like the drops seen in the Oil Crisis of the mid 1970s, Recession of the early 1980s, ERM crisis of 1992 and the Global Financial Crisis of 2008/09. Also, when compared to the other main economies of the world (G7), the UK has always bounced back much more quickly from recessions when it comes to consumer confidence.

    What about house prices in Lymm in 2022/23?

    Increasing energy prices, rising inflation, an increase of sanctions, and a probable drop in consumer confidence and spending in the aftermath of the conflict will knock the post-pandemic recovery globally, which will lead to a recession around the world, including the UK.

    A recession is when a country’s GDP drops in two consecutive quarters. For the last 300 years, there has been a direct link between British house prices and GDP – (i.e. when GDP drops, UK house prices fall). Yet in 2020, the British GDP dropped by nearly 12%, yet house prices went the other way. 

    But, let’s look at what would happen if Lymm house prices did drop by the same extent they did in the Global Financial Crisis of 2008/09.

    House prices in Lymm dropped by 18.5% in the Global Financial Crisis, the biggest drop in house prices over 16 months ever recorded in the UK.

    The average value of a property in the Warrington area today is £239,874.

    Meaning if Lymm’s house prices dropped by the same percentage in the next 16 months, an average home locally would only be worth £195,497.

    On the face of it, not good – until you realise that it would only take us back to Lymm house prices being achieved in June 2020 – and nobody was complaining about those.

    Yes, that will mean if they do drop in price, the 4.9% of Lymm homeowners who have moved home since June 2020 would lose out if they sold after that price crash. But how many people move home after only being in their home for a few years? Not many!

    The simple fact is that 95.1% of Lymm homeowners will be better off when they move if house prices crash.

    And all this assumes there will be a crash.

    The simple fact is, the circumstances of 2009 that caused the property crash are entirely different to 2022 (no lending by the banks, higher interest rates and increasing unemployment compared to today’s increased lending, ultra-low interest rates and low unemployment environment).

    I do believe with all that’s happening in the world we might see a rebalancing of the Lymm property market later in 2022 and could see the odd month with little negative growth in house prices, yet it will be nothing like 2009.

    The expected fall in household spending could be counterbalanced by UK businesses’ plans to invest more in their businesses (with last year’s tax breaks on investing), which will create even more jobs.

    Who knows what the future holds? These are just my opinions – what are yours?

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    The 7 Things Sale Home Sellers Should (and Shouldn’t) Do in 2022

    Did you know 3,675 Sale homeowners are considering selling their Sale home between now and the summer of 2023?

    Reports in the press suggest 1 in 5 homeowners are considering moving home in the next 18 months.

    This will change the dynamics of selling your home in Sale, meaning there are certain matters that you, as a Sale homeowner, should do before placing your property on the market to ensure you get the best price, reduce the hassle and even more importantly, when you do sell, ensure the move actually takes place. Why is this important?

    1 in 3 Sale house sales fall through between sale agreed and the keys being handed over

    Also, nationally, the average length of time a property is taking from sale agreed to key hand-over is 19 weeks … and the longer the sale takes, the greater the propensity for the sale to fall through.

    So, if you are thinking of selling your Sale home, here are 7 things you should consider (plus some tips for those Sale homeowners currently on the market)…

    1. Get your ducks in a row

    Although it may seem apparent, having everything in place for the time you come onto the Sale housing market can really take weeks off the time between sale agreed and key handover and even avert the house sale collapsing. 

    For example, if you have had any building works done on your house, ensure you have the relevant paperwork now. That could be ensuring you have the Completion Certificate from the local authority for that extension you had a few years ago. Yes, you had planning permission, but are you aware you need a Completion Certificate from Trafford Metropolitan Borough Council as well?

    If you haven’t got the required building regulations or planning consent for any work (including changing your windows), that can really harm the price you achieve for your Sale home, or it could even finish the deal altogether.

    Also, if your Sale home is old (say 150 years plus) or even listed, you should think about spending a few hundred pounds and get a survey done on your own house, especially if you have been in the house for more than 10 years.

    This will highlight any issues that need to be rectified (and be shown to potential buyers) in case they start to nit-pick. If you need recommendation of a good Sale chartered surveyor – drop me a line.

    2. Carpet ‘photo’ bombing

    First impressions are everything, and you only get to make a first impression twice.

    Yes, I said twice, once with the photographs and the second time when the potential buyers view your Sale home.

    They say a picture speaks a thousand words, so ensure your agent photographs the best rooms from the best angles. The most important photograph is the front shot of your Sale home, so always ask to see the photographs before your property goes live on to the market to make sure they show your property in the best light possible.

    The second ‘first impression’ is when viewers view your home. Often the thing that lets the side down here is your carpets. If your carpets are more than 10 years old, then seriously consider replacing them with something inexpensive with some decent underlay or give them a good professional clean.

    In this Facebook world, your Sale home needs to look as good as it can to appeal to as many Sale buyers as possible.

    3. Make it a potential home for your buyer, not a shrine to you

    There was a house in the East Midlands called “Disaldu” (as in “This will Do”) that had been on the market for four years with six estate agents. As soon as it changed its name, it sold in a week. Be careful about over personalising your Sale property as that could be off-putting to possible home buyers. 

    Try not to be too daring with styles and colour schemes in your bathroom and kitchens, as your buyer won’t want to spend another £25,000 changing your neon pink kitchen units to something a bit more mainstream.

    Sale homebuyers often hate to change something which has just been finished but is not to their personal taste. Now I am not talking about magnolia everywhere as there is room for some flare, yet be aware it’s a fine balance between your personal tastes and making your home attractive and selling it in the largest mainstream market possible.

    Finally in this section, is your Sale home cluttered or untidy? Many people won’t be able to see past the jumbled house and overflowing bookcases. If you are unsure, drop me a message and I can pop round your Sale home when I am passing for 5 minutes if you want an impartial opinion.

    4. Highlight the potential of your Sale home – but not too much

    If you were considering extending your Sale home with a garden room, loft conversion or extension, then getting a local architect technician to draw you up some outline plans to demonstrate the development potential of your Sale property could be worth spending a few hundred pounds on.

    Yet at the same time, be careful not to extend to make your Sale house more sellable. I have seen a handful of Sale homes be over-developed (i.e. almost over extended), making the house too big for its plot. It’s all about balancing the house with the size of the plot. Again, if you are uncertain in any way, drop me a line and I can give you some impartial advice (even if you aren’t moving for another 12/18 months).

    5. Don’t let your garden grow on you

    Since the lockdown began in spring 2020, our gardens have become one of our most cherished features. Sale homes with decent sized gardens have attracted a premium. However,

    over-fussy and poorly planned gardens can also be detrimental to the value of your Sale home, rather than add value to it.

    6. Offices, offices, offices

    Working from home could be here to stay for a few years. With this new age of home-working, even if you don’t work from home, maybe set up a study area. It might even be worth investing in one of those office pods for your garden.

    7. Make sure the price is right

    The bottom line is, if a Sale property isn’t selling it probably means the asking price is too high. Yes, even in a market such as this….

    38.6% of Sale properties have been on the market more than 3 months

    Putting your Sale home up for sale at too high an asking price is one of the most harmful things you can do as a seller. This approach regularly costs homeowners between 3% and 5% of their potential price agreed.

    If you decrease your asking price at a later date in order to achieve a sale on your Sale house, you probably won’t get what you might have done if it had been realistically priced from the beginning.

    I am aware of a 4-bed semi-detached property in Sale which, in the summer just gone, began with an asking price of £440,000 yet ended up selling for only £385,500. It should have achieved at least £400,000 with a more realistic initial asking price (even worse, the sellers missed out on the property of their dreams because that one, being realistically priced, sold before they dropped their own price).

    The sturdiest and most important property market response is always in the first couple of weeks of exposure. Many Sale homeowners waste this optimum sales time by being too hopeful on their asking price.

    If you are on the market in Sale and believe you should reduce your asking price, be courageous with your reduction. Make one substantial change of at least 5%, not a series of salami price changes of a 1% here or 2% there.

    So, if you are currently on the market and feel you aren’t getting anywhere and think it could be your asking price, then again, drop me a line.

    Posted on

    Should Lymm Landlords be worried about these new rental regulations?

    Everyone should be doing their bit to help reduce the UK’s carbon footprint on the globe – yet the question is, is that burden being put too much on the shoulders of Lymm landlords with potential bills of £7,600+ in the next four years?

    The background – the UK has obligated itself to a legally binding target to be carbon neutral by 2050. One of the biggest producers of greenhouse gasses is residential homes.

    To hit that carbon-neutral target (as one-fifth of the UK’s carbon output comes from residential property), every UK home will need to achieve a minimum grade of ‘C’ on their Energy Performance Certificate (EPC) by 2035. Each EPC has a rating between ‘A’ and ‘G’ – ‘A’ being the best energy rating and ‘G’ the worst – like an energy rating on a fridge or washing machine.

    All UK rental properties have required an EPC. Yet, from April 2020, the Minimum Energy Efficiency Standards (MEES) regulations have required all private rental properties (including rental renewals) to have a minimum EPC rating of ‘E’ or above.

    Yet new legislation being discussed by the Government’s Climate Change Committee has suggested that landlords should play their part and increase the energy efficiency of their private rented homes. Sounds fair until you dive into the details.

    The Government is muting the idea that all new tenancies (i.e. when a new tenant moves in) in private rented properties should be at an EPC rating of ‘C’ or above by 2025 (and all existing tenancies by 2028). The issue is …

    53.67% of all private rented properties in the Warrington Council area have an EPC rating of ‘D’ or below.

    The problem is some Lymm landlords will find it very expensive, neigh impossible, to improve the energy efficiency of their Lymm rented properties, especially those Lymm landlords who hold older housing stock such as terraced properties built in the 1800s. These Victorian terraced houses never perform well on EPC ratings as they have solid walls. 

    Now, of course, you can improve the EPC rating of a terraced house by improving roof insulation, boiler replacement, solar heating, and high-grade uPVC windows. Yet, with some terraced houses, there will come the point where you will be unable to get to the haloed ‘C’ rating without installing external or internal wall insulation, sometimes even floor insulation.

    With wall insulation costing between £5k and £15k and floor insulation around £5k …

    the bill to improve all Warrington Council area’s private rented properties will be a minimum of £36,099,000.

    But before I talk about what the options are for Lymm landlords, here’s the weird part of EPC’s. An EPC rating is calculated on the cost of running a property and not the carbon output or energy efficiency, despite its name.

    My advice to Lymm landlords – although it’s correct to create a future strategy, all I can say at this point is ‘more haste less speed’. These rule changes are only a discussion paper, and it remains open for consultation by any member of the British public until 30th December 2021. That means the Government’s strategies and tactics may change.

    Given that 57% of private rented properties are below a ‘C’ EPC grade, it is hard to believe the Government could achieve this without making big cash grants available.

    For example, there is presently a cap of £3,500 for energy improvements that Lymm landlords have to spend to get it to the existing EPC ‘E’ target grade on private rented homes (i.e. if you have a privately rented home at an ‘F’ or ‘G’ EPC rating, you only need to spend a maximum of £3,500 as a landlord on improving your EPC rating and still being legal even if those £3,500 don’t get you to the current ‘E’ rating minimum). So, if the current rules allow an exemption to the EPC renting rules, if a Lymm landlord can’t improve their Lymm property enough, conceivably, could this be extended?

    So, what are Lymm landlord’s options?

    One thing you could do is put your head in the sand and hope it all goes away!

    Another thing some savvy Lymm landlords do (be they my client, clients of other letting agents in Lymm or even self-managing landlords) is to sit down and plan a strategy for their Lymm rental portfolio. I print off all the EPC’s of their rental portfolio, look at the recommendations, then discuss a plan to ensure they are covered whatever the Government decides to make the new EPC rules. Like all things in life, plan for the worst and hope for the best.