The Latest from Burnett's

Welcome to our March newsletter.

Supply and demand outstrips Brexit concern

With the Brexit date being pushed back once more, it would appear that supply and demand for property is now the driving factor in the market, with Brexit taking the back seat in terms of market-driving factors.

In a recent survey from property investment company SevenCapital, nearly 69.5% of investors continued to invest in the United Kingdom despite the spectre of Brexit. Indeed, this confidence in the United Kingdom property market is echoed by international investors, with nearly 95% of the Hong Kong respondents believing that Brexit isn’t a critical factor in their investment decision.

SevenCapital points out that the Sterling has risen in value – a better indicator of fiscal stability – and this outweighs any potential impact that Brexit may have levied upon the market. With the average price of properties increasing last month by over 1% or £3,347, according to Rightmove, then house prices are also reflecting this upturn in the market.

In terms of the rental market, rental yields have also grown in recent months with the best performing areas in Birmingham and Manchester seeing yields driven up as much as 10%. With new changes in the rental sector such as the Tenant Fee Ban and Section 21 changes, tenants and potential tenants should be feeling more empowered in terms of their rights which should encourage more renters into the market.

Despite the headlines that Brexit has provided of late, it is evident that other factors are driving the property market, both sales and lettings. A key point to note is the lack of housing supply and increased demand of late with this duality keeping the market buoyant, despite any political uncertainties. With first-time buyers now at record levels and keen to buy, there is a whole new swathe of potential buyers entering the market which is creating an extremely competitive sales environment.

One in six parents remortgaging for their children

With interest rates remaining incredibly low and competition amongst lenders producing some of the most favourable finance options ever seen, many are remortgaging in order to benefit from cost savings. Rather than simply easing the financial burden, however, recent research has shown that many parents are remortgaging in order to gift the extra money to their children.

Price comparison website MoneySuperMarket has found that one in six parents who remortgage their home then gift some of that extra cash to their children, with the average financial contribution standing at £9,050 per child and nearly 10% of parents giving over £20,000.

More than a third of the children who receive the financial gift utilise it as a deposit for a property, whilst others use it to go travelling (11%), buy a new car (11%) or pay for ‘everyday essentials’ (9%).
Rachel Wait, consumer affairs spokesperson at MoneySuperMarket, commented: “Our research found that 15% of parents released equity when they remortgaged to help their children. However, you’ll only be able to do this if your property has gone up in value and you’ll need to be sure you can afford to keep up with your new repayments.

“It’s also important to factor in the costs associated with remortgaging, such as arrangement fees which can be as much as £2,000, as well as legal, admin and valuation fees. Try to be realistic – only release equity to help your children with life events if you can really afford to do so.

“Also keep in mind that because a mortgage takes so long to pay back, remortgaging may not be the right option for everyone – there may be cheaper ways of getting a cash sum. It’s important to look at all options and shop around before making a decision.”

How to add value to a property

When we decorate our properties, it is often driven by personal preferences in order to make a space fit into our own idea of what is stylish. However, if you are not just looking to decorate a space but to maximise the potential value of your property, then read our guide which explores the best ways to add worth to a home.

Solve existing issues
If you’re thinking of adding value to your property then don’t jump straight to improving the aesthetic of particular rooms in order to gain the much-lauded “wow factor”; instead make sure that your property is structurally sound. It may have less cosmetic impact, but a house with a leaking roof, subsidence or damp will be severely hindered in achieving a strong asking price due to the perceived costs and effort in fixing the issues. Take the time to assess your property and ensure there are no major defects, and this will give a solid foundation for your property to achieve the best price on the market as buyers will not be scared away by problems, nor will they be able to barter the price down.

Central issue
Take a look at the central heating system in your house - does it look modern and fit-for-purpose or is it on its last legs? If your central heating isn’t quite up to scratch, then replacing this is a sure-fire way to add value to your property as it is another issue which has the potential to put-off potential buyers. Although the initial outlay for the central heating refit may seem high, you should more than recover these costs when selling the property as it is another key point which will assure buyers that your property is well-cared for.

Extra space
Adding additional living space will always attract potential buyers as this offers them versatility in the way in which they will use the property; however, before you convert that loft or garage then we would recommend doing a little research. A converted loft can add thousands to the asking price of your property, so it is certainly something to consider – before you undertake this do take a look at similar properties in your area and do some investigation as to what the top selling price has been lately. There will be a ceiling price to the properties in your area, and therefore before you add a room, make sure that there is the potential to recoup the cost in the asking price of the property.

Decoration
If you’re looking to add value to your property without any major outlay, then picking up the paintbrush could be the answer. Freshen up any paint that has seen better days around the house and do the same in the bathroom, checking on any sealants to ensure they are crisp and clean. Clean up a few simple defects and potential buyers will see your property in an entirely different light, willing to pay more for a home that they perceive to be in excellent condition. This should extend to the frontage of your home, so ensure lawns are mowed and outside areas look cared for.

Kitchens and bathrooms
That old saying that homes are sold due to their kitchens and bathrooms is true, to an extent. Having a modern kitchen and bathroom will add considerable value to your property, as well as generating much more interest from potential buyers. If you don’t want to invest in a brand-new kitchen and bathroom, then update your current spaces in order to make them more sellable. Kitchen cabinets can be painted to modernise them, and changing the door handles to something more sleek will also help to create the feeling of a newer space in the kitchen. In the bathroom, refresh the paint on the walls, keeping it as neutral as possible, and ensure that the space is bright and airy – add mirrors to make the space feel bigger, and use accessories to add colour into the space.

The best home design ideas for 2019

Whether you want to add value to your home in preparation for sale or you just want to make your property a more appealing place to live, redecorating and incorporating the latest trends is a worthwhile endeavour. Take a look through some of our picks of the best home design ideas emerging through 2019…

Embrace the industrial

One of the key trends throughout the year so far has been the embracing of industrial materials in the home environment. Typically, steel beams in the ceiling space would be covered, with their utility overshadowing their relative beauty. In line with new trends, these beams would be left exposed; their harsh texture a welcome juxtaposition to the surrounding soft surfaces in the home. Similarly, materials such as concrete are being embraced this year; simply polished to a high shine and then left exposed for a striking floor covering. Rather than exposing interior workings as a sign of minimalism or modernism, this newest trend is about adding new textures and colours into your home.

Bring the outdoors, indoors

In these modern days, we are constantly bombarded with new studies and surveys showing us the benefits of spending more time outdoors, and whilst these are of course to be heralded, it can be difficult to get the right amount of time alfresco. This desire for more outdoor space is being met head-on by designers who are incorporating more of the outdoors, indoors. The inclusion of bi-folding doors which concertina into themselves are being incorporated into modern homes in order to bridge this gap, and the additions of conservatories or orangeries are also ways to flood your home with light from the outdoors. A non-budget-busting method for incorporating more of the outdoors into your home’s design aesthetic would be to include more plants around your home and at different levels – on the floor, on tables or in very on-trend macramé hanging pots.

Let there be lights

Nobody starts out their interior design plans looking to create dark interiors with limited light; we all like natural light-sources to balance a room’s feel. Natural light and the inclusion thereof is a recurring theme no matter what year it is, but balancing the natural light with artificial light is high on the trend list for 2019. Hidden lighting and light-sources are a key inclination this year; with recessed lights, under stair lights and uplighters all proving very popular.

Au naturale

In years gone by, interior trends have revolved around overly designed rooms with “feature walls” and striking pieces, yet this year the natural finish is having something of a revival. The use of materials such as clay plaster offer a more interesting and textured finish, with no need to be covered once applied which creates an organic and natural feel to an interior.

Storage woes

A major concern for interior design this year is that of storage and how to incorporate the most innovative storage space into the home. Kitchens are key in this trend – with the inclusion of central islands adding storage, high cupboards drawing the eye further up the walls to create the feel of taller ceilings and the resurgence of pantries to hide away ingredients. Around the home, under stair storage is a massive trend as this space is often wasted, and similarly storage underneath baths is increasingly being utilised.

Minimum qualifications and code of practice a step closer

Estate agents have found out how they will be policed as the final report from the Regulation of Property Agents (ROPA) working group is made public.

Click here to read Minimum qualifications and code of practice a step closer.

Apps To Help You With Anxiety and Stress

Anxiety is something that we can all experience at times, however in the midst of the coronavirus there will likely be more of us than ever who are suffering with anxiety. There are plenty of techniques to help you manage levels of anxiety, with one of the key innovations being the development of apps, we have found some of the best apps to help you cope with the current situation and beyond.

1) Stress & Anxiety Companion
Recommended by the NHS, this application helps you to handle stress and anxiety on the go through the use of breathing exercises, relaxing music and games designed to calm the mind.

2) Calmer You
Calmer You is a new app developed by Headspace’s former head of Research. The app brings together a range of tools from Cognitive Behavioural Therapy through to workouts, all with the aim to find a personalised approach that helps soothe your anxiety.

3) ReachOut Breathe
Focusing specifically on breathing techniques, this app guides you through your breathing telling you when to inhale and exhale in order to counter some of the effects of anxiety. You can customise the techniques which work best for you and the user interface can also measure your heart rate.

4) Self-Help For Anxiety Management (SAM)
This is an anxiety-soothing app with a difference; it encourages users to think about situations which cause them anxiety and how they react. Through identifying different types of anxiety and triggers, a toolkit is developed to help you cope better – one of the key features of this application is the multi-faceted approach which it takes in dealing with your symptoms.

5) Mindshift
Perfect for the current situation as this application can focus on general worry, social anxiety, perfectionism, panic, phobia or another kind of anxiety. For each specific concern, the application can create tailored coping plans which should aid you in finding an equilibrium.

6) MoodMission
If you are looking for a more light-hearted manner in which to find your perfect coping method, then sample MoodMission. This application uses games and app rewards designed to motivate you to improve your mental fortitude.

7) Sanvello
During the Coronavirus this usually paid-for app has been made free of charge due to the demand on downloads; tracking your exercise, meals, family time and other habits it can pinpoint your bouts of anxiety.

Chilled in a Field

Grown from the '90's London party scene we're a small, independent Sussex festival for grown up party people and their kids.

Click here to read Chilled in a Field .

Mind, Body & Spirit Fair

Come along and enjoy some de-stressing and holistic treatments and alternative therapies.

Click here to read Mind, Body & Spirit Fair.

Ridgefest 2020

Live music, delicious street food and of course, your favourite English Sparkling Wine! Come down.

Click here to read Ridgefest 2020.

A Midsummer Night's Dream

The Three Inch Fools - fresh out of lockdown - take to the road with only three actors, far too many musical instruments, one almighty play!

Click here to read A Midsummer Night's Dream.

Free networking event in Matlock

Anyone who likes what they do. Instead of getting the Monday morning blues you get the Monday morning highs.

Click here to read Free networking event in Matlock.

Going Barefoot with your horse

This half day workshop looks at how to transition your horse from shod to barefoot as well as ways to support the barefoot horse.

Click here to read Going Barefoot with your horse.

How much could you save by re-mortgaging?

Homeowners whose fixed rate mortgage deal has ended could save hundreds by just re-mortgaging!

When a fixed mortgage deal ends, you are usually automatically put onto the lender's Standard Variable Rate (SVR), which can cost borrowers more each month in repayments than if they actually re-mortgaged onto a new fixed rate deal.

Here are some examples to show you the savings when switched:-

How much could you save re-mortgaging with 40% equity in your home?

If a homeowner owned 40% equity in their home, they would look for a mortgage deal at 60% Loan to Value (LTV).

• The average SVR currently stands at 4.41%*
• The average two year fixed rate at 60% LTV is 1.67%*
• The average five year fixed rate at 60% LTV is 1.90%*

With a property valued at £250,000, mortgage borrowers looking to re-mortgage at a 60% LTV would be looking to borrow £150,000.

Using a mortgage repayment calculator, you can calculate that if this borrower was on the average SVR on a mortgage term of 20 years, they would be paying £941.70 per month.

If they re-mortgaged onto a two year fixed rate deal at the average rate of 1.67%, this borrower would pay £735.61 per month in repayment, a reduction of £206.09 per month.

If this borrower were to re-mortgage on a five year fixed deal at the average rate of 1.90%, they would pay £751.74 each month in repayment, a reduction of £189.96 per month.

How much you could save re-mortgaging with 25% equity in your home?

Those homeowners who own 25% equity in their home would look for a mortgage deal at 75% LTV.

• With a two year fixed rate average at 75% LTV, which is currently at 2.29%
• With a five year fixed rate average at 75% LTV, which is currently at 2.49%

If your property is valued at £250,000, a homeowner would look to re-mortgage at a 75% LTV, borrowing £187,500.

On the average SVR of 4.41% and a mortgage term of 20 years, repayments on the average SVR would be £1,177.13 per month.

Re-mortgaging onto a two year fixed deal at 75% LTV at the average rate detailed above, repayments would be £974.50 per month.

If the homeowner re-mortgaged onto a five year fixed deal at 75% LTV at the average rate detailed above, it would make their monthly repayments of £992.65, a reduction of £184.48 each month.

How much could you save?

There are many deals available offering rates below the average, which means for some borrowers, bigger savings could be made.

If you speak to a mortgage broker, they’ll be able to give you the best options for your circumstances.

Contact us today for more information or help finding the right mortgage deal for you.

*Moneyfacts.co.uk

Good news for first-time buyers as lenders allow smaller deposits

Over the last 12 months, first-time buyers have found it more difficult to move forwards with their purchase plans, as low-deposit mortgages became increasingly scarce.

Now that lenders have begun to re-introduce their 10% deposits, the current situation is looking up for new homeowners, as the number of available products at 90% loan-to-value ratio rose by 29% in the first two weeks of February.*

It is estimated that around £5 billion is currently being held up in the first-time buyer’s market due to the COVID-19 pandemic, as many future homeowners have decided to delay their move until they have greater financial stability and job security.

Are you looking to try again with your first property purchase?

Nine in ten 90% mortgages were withdrawn from the market in the wake of the COVID-19 outbreak last spring.

Nearly a year on, first-time buyers have been handed a serious boost, with the majority of lenders now offering low-deposit mortgage deals and reducing the restrictions they put in place on how much of the deposit could be 'gifted' by friends or family members.

To learn more about your prospects as a first-time buyer, please visit our website.

*Moneyfacts

How to maximise what you can see without physically viewing

It goes without saying that COVID-19 had a massive ripple effect on the world, and of course, the property market wasn’t left untouched by this.

We have seen radical changes within the sector, as agents like ourselves look at ways to adapt and evolve in order to meet new needs from our clients and colleagues.

One of the ways we've done that as an industry is to introduce new elements to our offering, substituting face-to-face meetings for online consultations that can be conducted safely.

Now, months after we've settled into this new way of doing things, a common question we get asked is ‘how can I maximise non-physical viewings?’

The benefits of non-physical viewings

A perk of non-physical viewings is being able to see the property without having to make unnecessary trips in-person to view a property, which is key in light of the current situation and restrictions.

Spending more time looking at online property listings, virtual tours or videos allows you to browse a larger number of homes than it may have been possible to physically view; particularly if you find it difficult to find time outside of work to arrange appointments.

So, this already means that you have the opportunity to see more properties in less time and refine the criteria you have by being exposed to more choice.

Another key benefit is that by starting your search online, you can quickly gain a feel for the homes that you want to see again, whilst identifying those that aren't suited to your needs.

In terms of maximising your time when talking to an agent screen-to-screen, we'd advise asking them about the natural flow of the rooms to help you envision the space more clearly, as well as the standard questions you'd otherwise ask on the seller's reasons for moving, whether there's a chain and the current conditions for the property's boiler and water pressure.

As we can appreciate that you'll want to see a select few properties in-person when you've narrowed down your search, there are tips for making in-person viewings right now, such as:

- Arranging the viewing by appointment, with only one household in the property to minimise contact

- Wearing a mask and using sanitising gel at the start and end of the viewing

- Asking any questions outside of the property so that you don't feel rushed to exit and miss anything important

How can we help?

Speak to a member of our dedicated team for any support you may need.

10% price surge for detached homes due to house hunters demanding more space

Since the property market reopened last summer, we've seen a market boom that's led to record activity for new listings and sales agreed in the UK, as homeowners rush to find somewhere more suited to their lockdown needs and lifestyle.

The average price of a detached home was £486,595 in December 2020, which when compared to the previous year is a massive increase of £43,364.

This increase in value seems to be directly related to the fact that house hunters are seeking properties with more space since the emergence of the pandemic, as well as the start of the working from home new norm.

The second highest increase year-on-year were for semi-detached properties, which increased 6.26% to £287,313.

Russell Galley, Managing Director at Halifax, said: “as many continue to work from home, this has led to a significant increase in demand for bigger properties, which has likely driven the boost in price we’ve seen in detached homes versus other property types.

“Over the past six months, the average UK house price has risen by 6.3%, making it the market’s best half-year performance since early 2007.”

In the last two decades, the price of a detached home in the UK has trebled. In 2000, a typical detached property could be bought for an average of £164,820.

However, it’s the last five years which have seen the sharpest price increase.

In 2015, the jump from a semi-detached to detached home would be just under £150k, with the gap widening to just under £200k in 2020.

How much could your property have increased in value by? If you've not yet obtained an updated market appraisal for your home, you could be unaware of its value in light of current market conditions.

To get started with your next sale or purchase, visit our website today or talk to us directly to book your valuation.