James Anderson March Newsletter

10 cost-effective hacks for keeping your property warm and cosy

With much of the UK workforce now operating under lockdown again, it's estimated that we'll see a collective hike of almost £2 billion on our energy bills at home.*

 

Here are our top ten cost-effective hacks to keep you warm this winter:

Cover up bare flooring – wooden floors can be notoriously cold, but thinner carpets can also be chilly. The addition of a thick, cosy rug can really make a difference to the warmth of the room, whilst adding a stylish touch.

 

Be smart about furniture placement – similarly to adding staple pieces such as a fluffy rug to a room, other larger pieces of furniture can make a huge difference, as can their placement in your home.

 

Any furniture blocking a radiator should be rearranged to ensure that the heat can flow around the room more evenly, creating an overall warmer environment.

 

Use draft excluders – these can be particularly useful if you are renting an older property.

 

Place these in front of doors to keep the heat in. This will save you money on your energy bills as less heat will escape the property. They can also be matched to your current interior.

 

Let the sun in – on sunnier days this winter, open your curtains and let the sun warm up your home. Sunlight is not only great for naturally warming you up but also for your mental health and energy levels. 

 

Keep the heating on low – this may sound bizarre, but having your heating on a constant low level during the day can lessen your energy bills.

 

This prevents the periodical off-on that will cost you more in the long run. Similarly, this will avoid pipes bursting when the temperature drops below zero.

 

Heavy curtains – another way to keep the heat in this winter is to hang heavy curtains or blinds near your windows, as the fabric will absorb the draft that would otherwise be coming into your property.**

 

Keep doors closed – once your heating or fire is on and warming up your property, ensure you keep doors closed to keep the rooms you’re using nice and cosy, rather than letting heat escape into unused sections of the house.

 

Be selective – any rooms that aren’t used regularly, such as guest bedrooms and bathrooms could be costing you extra money on energy bills.

 

To avoid this, turn the radiators in these areas down, keeping them on low to avoid the pipes freezing.

 

Similarly, areas such as the kitchen and bathrooms won’t need to be heated as much as your living room, so remember to take this into consideration.

 

Block your chimney – if you’re lucky enough to own or rent a property with a gorgeous chimney, these can be a huge culprit for making your home chilly.

 

To avoid this, try purchasing a low-cost chimney balloon. These can be inflated inside the chimney – out of view – and will block cold air coming in, as well as preventing heat escaping.

 

Bundle up – it wouldn’t be a 'keeping warm in winter hacks' piece without mentioning layering!

 

As clichéd and predictable as it is, wearing a jumper, dressing gown or a fluffy pair of socks is a great way to stay warm on a budget. This paired with a warm drink and a bowl of soup creates the perfect cosy evening in.

 

 

For more information or support with your property, contact our team today.

 

 

*Source: The Guardian

**Notice for tenants: if any alterations to your property are needed to make this change, please ensure you have permission from your landlord prior to doing any work. 

 

From ‘generation rent’ to ‘generation buy’

In a recent conservative conference, Boris Johnson promised to create two million more homeowners by changing ‘generation rent’ into ‘generation buy’, in the hope that the UK can return to normal post-COVID.

Mr Johnson continued by suggesting that the current levels of home ownership among the under 40s was ‘disgraceful’.

 

These levels have been plummeting dramatically over recent years, which has made people “pay through the nose to rent a home which they can’t truly love or make their own”.

To do this, changes to the regulations introduced in 2008 are required.

 

Previous strict minimum capital requirements, which were imposed on UK banks, are being blamed for initially making owning a house unattainable for various individuals.

 

These individuals may have been able to afford the monthly mortgage fees associated with homeownership, but the initial upfront deposit being between 15 and 20 per cent, it’s clear to see why renting was the only option for most.

 

Due to this, private rent increased from 2.8 million in 2007 and to 4.5 million in 2017.

So, what’s the solution?

The Prime Minister’s ambitious plans to ‘fix our broken housing market’ begins by slashing the current deposit rates to only 5% for first-time buyers.

 

As a result, this will be the biggest expansion of the sales market since the 1980s.

 

This will be welcome news for potential first-time buyers nationwide, and a great boost for the property market post-lockdown.

To view our properties, visit our website today.

 

Ten tips to saving money when moving home

 

Whilst we're all aware of the costs associated with moving, not all of us will know the money saving solutions used by savvy sellers.

 

These top tips will ease the stress of moving on yourself and your wallet, leaving you with more funds for decorating your new place.

 

Pack smart

 

Keeping your possessions safe when moving is a priority for us all, but it doesn’t have to be costly.

 

Boxes aren’t the only option; washing baskets, bins and suitcases are all environmentally-friendly alternatives that you probably have lying around your home.

 

Refrain from splashing out on bubble wrap and instead save up newspaper to protect those breakable valuables.

Recruit the troops

 

Hiring removal experts is the most sensible idea when moving, however, it isn’t always the cheapest option.

 

With social distancing restrictions in place, it's also more difficult to bring in additional outside help from friends and family members.

 

Where possible, rely on people within your household and support bubble, with recommendations or online referrals to find the removal firm that's right for your needs and budget.

 

Pick your days wisely

 

Don’t get caught out by extortionate peak pricing for removal firm bookings.

 

Some companies may hike up their prices on weekends and bank holidays, so opting for a mid-week move can lower the costs significantly.

 

Prepare early

 

On your moving day, you'll already have enough stress to deal with overseeing the packing and unpacking of your property's contents, so you won't want to deal with any hidden costs that could have been avoided.

 

Before setting off for your new home, it's worth thinking about where you'll park when you get there, and if you'll need any permits to park all day fine-free.

 

Conquer the DIY fear

 

Whilst lockdown has encouraged many of us to dabble in DIY, it's not for everyone, which could mean DIY-shy movers end up paying premium prices for professional help that could have been accomplished with a quick YouTube tutorial.

From building flatpack furniture to fixing kitchen sinks, you'll be surprised at what you can do yourself, and how much that could save you.

Declutter as you go

 

Getting rid of items you no longer want or need could impact your quoted removals firm service, so bear that in mind before committing to a price, as some companies will price based on content quantity over time taken.

 

Refrain from a moving day takeaway

 

Takeaways are tempting at the best of times, so when you're unable to find your cutlery or utensils, you might find yourself reaching for the phone.

 

If you're on a budget and want to stick to it, plan ahead and prepare meals that can be eaten at the end of a long day.

 

Or if your temptations do give way, make sure you research local delivery options to avoid paying more than you anticipated.

 

Redirect your mail

 

Not changing your mailing address can become an expensive pain going back and forth fetching letters addressed to your old house.

 

For a small fee, you can get this changed for you.

 

However, if you want to save the most money, you can do this manually by contacting the companies you know send you mail regularly, for example bills and pay slips as well as any online retail shops you frequently order from. 

 

Swap to the cheapest utility providers

 

Although it's advisable to search around for the best providers all-year round, it's even more important following a move.

 

You might find that your new area gives you access to better deals and rates, or that certain broadband providers perform slower / faster compared to your previous location.

 

It will also save you the hassle of setting everything up only to decide to switch after a few weeks or months.

 

Frugal furnishings

 

The goal to a successful move is to create liveable areas in your home until you've finished making it your own with home improvements and renovations.

 

Don’t break the bank by rushing to purchase those finishing touches, as you'll find that adding to each room over time ensures each section of the house has purpose and character.

 

For a second-hand find, try websites such as Freecycle or Gumtree – just make sure you're confident in what the sellers are offering before you pay them.

 

 

Contact our expert agents to find out more about a seamless moving experience, visit our website.

 

 

UK property market set to grow 4% in 2021

As we come into the new year, the housing market is forecast to continue its positive state, according to Rightmove.

 

House prices are set to grow an average of four per cent, despite the stamp duty holiday ending soon.

The market has seen a great increase in demand since the first lockdown, with larger houses proving to be the most popular property type, which is largely attributed to a change in routine and the rapid adoption of remote working across the country.

 

In July, Chancellor Rishi Sunak introduced a stamp duty holiday allowing houses purchased for under £500,000 to benefit from a tax break.

 

Although this scheme is due to end on March 31st, many people within the sector are calling for an extension, so that buyers and investors may continue to benefit from additional support and to speed up economic recovery.

Mortgage lender Halifax recently reported that over the last five months, the house price increase has reached its highest record since 2004. 

 

Seasonal trends suggest that January is a popular time for buyers and sellers. This year, that demand is off the charts, with homeowners rushing to reach completion and see stamp duty savings.

 

Rightmove expect the market to remain resilient despite the pandemic and Brexit.

 

They claim that the uncertainties of COVID-19 and Brexit have been around for long enough to not deter Brits from buying and selling.

 

If you’re looking to buy or sell, get in touch with our local market advisors for more information on what to expect in 2021.

 

 

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 IMC Financial services below for more information or help finding the right mortgage deal for you.

 

 

 

*Moneyfacts.co.uk

 

750,000 buyers have seen Stamp Duty savings so far

 

It's been estimated that 600,000 homebuyers agreeing a sale from May 2020 onwards will not pay any stamp duty at all and are set to be saving £5 billion in total – that is an average of £4,660 each, according to Zoopla.

 

Last month, many questioned whether the further 140,500 waiting to complete would be able to do so in time for the March 31st deadline, but in light of the government's March Budget announcement, those concerns are no longer necessary.

 

Not only have the government extended the stamp duty holiday for another three months – taking us to June 30th – but the scheme will also have a staggered ending, with properties worth £250,000 or under eligible for savings of up to £2,500 until 30th September this year.

 

Along with an extended furlough scheme and the re-introduction of government-guaranteed 95% mortgage loans, these initiatives will protect the property market and mean that homeowners, first-time buyers and investors are shielded from a sudden withdrawal of support.

 

 

Who does this affect?

With the stamp duty only paid on completion, it has not only benefitted those already in the process of buying when this announcement was made but also acted as an incentive for other buyers to move before the original 31st March deadline.

 

This demand and more homes on the market has boosted overall activity levels in the property sector.

 

So, given the extension, it's predicted that we'll see a strong spring and summer for property sales, having already demonstrated above average seasonal averages for the previous winter.

 

 

 

What can I do to speed up my property transaction?

If you’re in the process of buying a home, there are a number of steps you can take to help make the conveyancing process go as smoothly as possible.

1. Make sure you have all the relevant paperwork to hand.

2. Respond to any additional information as quickly as possible.

3. If you need to sign any documents and return them to your solicitor, deliver them by hand.

4. Communicate regularly with your solicitor and estate agent to keep everything on track. Maybe agree to have weekly updates from everyone involved.

5. Prepare to be flexible. 

 

 

Research Director from Zoopla – Richard Donnell – commented last month that “demand for housing started 2021 as strongly as last year", going on to say that at the time, there was "limited evidence of new buyers being put off by the proposed ending" of the stamp holiday on the 31st March.

 

 

 

Rental growth picks up for the sixth month in a row

 

The rental market has picked up for a consecutive sixth month, suggest sources in the property sector, with reports showing a 4.3% increase in January – which is 0.2% higher than the 4.1% figure in December.*

The South East topped the rental growth market, seeing a 10% increase in rents over the last 12 months.

The lowest rental region in the UK was the North East, with an average rental cost of £539 per month, whilst the highest region being Greater London had an average rent of £1,556; an approximate difference of 288% for the country's capital.**

 

What are the main reasons for this rental market growth?

Cost is an obvious drive for rental growth as we continue to see house values rise.

 

From 2007 to 2017, the property market saw the average UK house rise in price by just shy of £40,000, which has had a knock-on effect to tenants.

Another possible factor could be that – in the last 12 months – more and more people are becoming tenants due to so called ‘risk factors’, for instance, lengthy 25-year mortgages and not wanting to worry about house depreciation over time.

 

This has been amplified by those who have decided to rent for longer, such as first-time buyers delaying their purchase plans.

Changes in society also play a massive part in the rental market, as households are embracing the ability to move out easier and not being committed to a given property.

 

How we can help

With a tried and tested method to support landlords, we can help you maximise your property investments and make smart choices with your portfolio.

 

 

 

*Letting Agent Today
**Statista

 

 

Landlords urged to comply with electrical safety regulation or risk fines

 

What are the new electrical safety standards?

The new electrical safety standards require landlords to ensure the safety of all electrical wiring and fixed electrical installations are tested and signed off for each of their properties.

 

If the test highlights any investigative or corrective work, the landlord has 28 days to rectify the issue.

 

 

What exactly needs to be tested?

The fixed electrical parts of the property.

• Wiring
• Socket outlets
• Light fittings
• Fuse box
• Showers
• Extractor fans

 

 

What does not need to be tested?

The new regulations state that the tenant is responsible for portable electrical appliances and therefore tests on these items are not required.

 

However, it is recommended that the landlord carries out tests on the portable appliance items they provide for good practice.*

 

 

When will the new standards be enforced?

For existing tenancies, an electrical safety test will need to be carried out by 1st April 2021.

For new tenancies, all electrical installations must be tested before the tenancy begins.

 

 

Who can carry out the electrical safety test?

Only a qualified electrician can carry out the test. Guidance for choosing a competent tester:

- Electrical Safety Roundtable
- Registered Competent Person Electrical single mark and register

 

 

What do you need to do as a landlord once the test has been completed?

- Provide a copy of the electrical safety report to each tenant in their existing properties within 28 days of the inspection.

- If requested, provide the local authority with a copy within seven days.

- Supply a copy of the safety report carried out to the electrician conducting the next safety report.

- Provide a copy of the most recent report to any new tenants.

- If requested, provide a copy of the most recent report to any new prospective tenants within 28 days.

- Electrical installations must then be tested every five years.

 

 

What happens if landlords do not carry out corrective work highlighted by the report?

The local authority has the right to enter the property (with the tenant's permission) to rectify the problem and will notify the landlord of this action.

 

The local authority can then bill landlords for the cost of any work completed by them.

 

If any issues highlighted within the report are not rectified within 28 days, landlords will potentially be faced with a fine of up to £30,000.

Landlords have the right to appeal to the First-tier Tribunal against any decision of the local authority.

 

 

 

Due to current restrictions with the pandemic, many within the sector are concerned about ensuring their compliance in time with qualified help.

 

If you'd like to talk about this in more detail, visit our website or learn more about our services for landlords.

*GOV.UK