With post lockdown demand for property at a welcome high level, one thing was needed to help create what could be the most active market since the great recession: greater affordability.

Now the Chancellor has gone a long way to help through his mini-budget. From 8th July 2020 until 31st March 2021 there will be a temporary stamp duty holiday on the first £500,000 of all property sales in England and Northern Ireland. This does not affect Scotland and Wales, which have their own property transaction tax regimes.

Under Sunak’s change buyers of second homes and buy-to-let properties will also benefit, but will still have to pay the existing 3% extra duty due on the entire price.

During this tax holiday, the average stamp duty bill will fall by £4,500, and almost nine out of ten people buying a main home this year will pay no stamp duty at all. Anyone buying a home for around £475,000 will save almost £14,000 in tax and all purchases above £500,000 will save £15,000.

In the property industry we have long called for the government to overhaul a tax that has become a serious hindrance to buyers. Although seen as unfair by many, the government’s annual return from stamp duty is around £12bn – roughly equivalent to 2% of the Treasury’s total tax income. However even the Prime Minister has said in the past that he wanted to scrap stamp duty up to £500,000 and reduce the top rate – on homes costing more than £1.5 million – from 12% to 7%.

With the Halifax announcing, unsurprisingly, that house prices have fallen during the four months of lockdown, the new stamp duty level and the increased desire by many to make a lifestyle change mean this is the best time for years to buy and sell a property.

As any farmer will tell you, make hay while the sun shines.

 

There has been much said in the press recently about leasehold property, particularly on the issue of escalating ground rents and developers selling houses on a leasehold rather than a freehold basis.

So much so that the government instructed the Law Commission to undertake a review on leasehold enfranchisement. Their report on ‘options to reduce the price payable’ was published on 9 January 2020 and we await further information from the government on how they intend to implement the findings.

The inescapable fact is that a lease on a property is a diminishing asset which slowly loses its relative value over the length of the lease. All leaseholders should know that, subject to owning a property for a minimum of 2 years, they have a statutory right to extend their lease by an additional 90 years and there is an accepted way of calculating the cost of this lease extension.

The cost of any lease extension rises exponentially through the length of the lease, so it is best to act early. A group of leaseholders can also come together to acquire the Freehold of their building.

A helpful website for anyone with an interest in a leasehold property may be found at the Leasehold Advisory Service which offers free advice to leaseholders and freeholders alike.

Ian Perry FRICS – co-founder of Perry Bishop and Chambers – has over 40 years experience in advising both leaseholders and freeholders in these enfranchisement cases and is able to offer advice on taking the statutory route or extending a lease on an informal basis.

Contact Ian to discuss any of your leasehold concerns:

ian@irperry.co.uk

t. 01242 231754
m. 07774 726665

1. Don’t be too optimistic when setting your asking price

The price you want and the amount the market will pay can be two very different things. Your agent should be able to provide well researched comparable evidence of similar homes within your area which have sold recently when advising you on the pricing strategy before your home is launched to the market. Buyers have so much information at their fingertips now, they will be doing the same research and comparing your home with the one down the road with the more modern kitchen or the larger garden. If your buyer needs a mortgage, the surveyor will carry out the same research.

Not every property can be compared easily with other homes, particularly those that are very old or unique. Overpricing your home can result in it taking much longer to sell. Rightmove research shows that you will get 70% of all your interest in the first 2-3 weeks of marketing. If a buyer is not found within this period, then you will likely need to readjust the price, and may have lost valuable time, or even the best buyer to another property.

2. Do not ignore those niggling repairs and chipped paintwork

Today’s buyers live in a very busy world where often a married couple will both be working full time and wanting to spend time with their children while not at work. Many do not have the skills to undertake DIY or the time to find and project manage the various trades they need. New Homes offer an attractive option where they can just move in and unpack, the energy efficiency of the new home will be high and the bills low. So, don’t ignore the blown double glazing, or the leak from the bath, the slipped rooftile or the rotting fence. These are all things which may put off your potential buyer or give them an excuse to make you a low offer. But before you spend thousands on a new kitchen or bathroom, check with us first that it will be money well spent.

3. Not preparing your home for sale

The cleaner, less cluttered, and more well-decorated your home is, the more appeal it can have. Clutter can make your home appear smaller and make it more difficult for buyers to picture themselves living in it. Kitchen worktops cleared of clutter will seem larger and more practical. Keep the kettle, toaster and coffee machine and remove the piles of post waiting to be answered and bottles of cooking oils and vinegar. Move the piles of old magazines and books from the sitting room, plump your cushions and move pet beds and toys. Spring clean bathrooms, kitchens and windows and do not forget your kerb appeal. Gardens should be tidy and well cared for – you could even add a hanging basket or pot of colourful flowers by your front door. First impressions are lasting impressions and will tempt buyers into your home if you get it right! Your home’s exterior is like the cover of a book, setting the stage for what is inside. If a home is disorganized or appears in disrepair, buyers may be more sceptical about its condition when they are considering an offer

4. Limiting Viewings

Once you have put your home on the market wherever possible let your agent have a key and be flexible allowing your potential buyers to view at a time that is convenient for them. Making this process work for them puts them in a positive frame of mind which will help when they come to making you an offer. Remember some buyers are not able to give good notice, so wherever possible try to keep the house tidy and presented for those unexpected visits! If your house is not easy to show, it may not be easy to sell. While interruptions and added weekend planning may feel inconvenient, a good return on your investment can support your next move.

5. Using poor photographs

Your property photos play an important part in attracting the right buyers. The difference between DIY or an inexperienced agent’s images and those taken professionally can make a difference in the time it takes to attract a buyer, and the number of viewings your home attracts.

A good agent will know to choose the very best images to promote your home. In isolation if one photograph would not encourage you to view, then it may not be suitable. A few great images are better than twenty mediocre ones.

If your house is not easy to show, it will not be easy to sell either. While interruptions and added weekend planning may feel inconvenient, just remember the end goal—a good return on your investment that can support your next move.

Selling your home is a major life-changing decision, but it doesn’t have to involve aggravation, frustration, or hassle. Steer clear of these classic mistakes and you might close your sale faster and easier than you would have thought possible.

Nup End Green

Nestled in the quintessential English village of Ashleworth

Perry Bishop and Chambers are delighted to announce that they have been appointed as Sole Selling agent for this most delightful development by Redcliffe Homes in the stunning village of Ashleworth

Nup End Green offers a delightful range of individually designed, energy efficient homes. Designed for those seeking the village ‘Good Life’ yet with swift and easy access to Gloucester, Cheltenham, Worcester, Hereford, Cirencester and Birmingham.

All of these homes are either four or five bed detached with garaging and all have generous gardens.

With only six remaining homes for sale which comprise of three individually designed house types we would encourage you to arrange an appointment to view as soon as possible.

The village of Ashleworth has a relaxed and friendly community, with its local post office with village shop, church, memorial hall, pubs and excellent primary school.

Prices are from £499,999 – £625,000 and all of these homes are ready to move in to

We will be hosting a major open event on Friday 3^rd July from the hours of 11am – 4pm however due to Covid-19 this will be strictly by appointment only to respect social distancing.

View a video tour of this development.

Please call us on  01242 – 246980 to arrange your personal appointment

Or email on: Cheltenham@perrybishop.co.uk

Perry Bishop and Chambers are hosting an exclusive event at Kite’s Nest this forthcoming Saturday 4^th July present the brand new Show Home that has just been completed.

There are seven three storey three bedroom townhouses all with private gardens and allocated parking.  There also remains one two bedroom apartment having reserved two off plan.

PLOT 4 which is the show home offers on the second floor a very large kitchen / dining / living area with doors opening on to a Juliette balcony. The first floor offers a double bedroom with ensuite, family bathroom and a further bedroom / study.

The ground floor offers a large double bedroom again with ensuite.

All have gas central heating, integrated appliances to the kitchen, a 10 year warranty and triple glazing.

The location lends itself to being conveniently located a short distance from Stroud’s centre and railway station. An opportunity for great walks along the Canal or up to Rodborough.

All with ‘Help to Buy’

Prices from £295,000 – townhouses

Apartment 3 – £195,000

We will be here between 10am and 4pm and to respect social distancing please contact us to arrange your private appointment.

To make your appointment please call: Stroud 01453 – 762306

Or email Stroud@perrybishop.co.uk

Phillip Bishop from Perry Bishop and Chambers looks at the impact national and global events might have on a resurgent UK property market towards the end of the year.

We hear about caveat emptor – let the buyer beware – but what about caveat venditor – let the seller beware? In the property market there is a great deal for sellers to be happy about at the moment. But how long this will last is anyone’s guess. Sellers should beware.

The relaxation of the Covid lockdown rules has taken the property industry by surprise – albeit a pleasant surprise. There is an exodus from urban areas to rural locations. More buyers want open space and extra room at home than they did before the lockdown. Larger houses have suddenly become more popular as buyers look for extra working space – not just for one person but also for two or more people. Multi-generational homes are also receiving more attention.

Properties that are two, three or even four hours’ travelling time from major cities such as London and Birmingham are increasingly in vogue. Buyers are swapping property in the commuter belts for more expansive homes farther out, now that working from home is more prevalent. Why live in East Acton when you can live in East Anglia and why live in South Croydon when you can live in the South Downs or even South Devon?

How long this unexpected result of Covid 19 will last is impossible to predict. But the bandwagon is rolling and seems to have reversed years of rural flight to urban environments.

But sellers should beware of several points. First, urban living has wonderful advantages and this outward movement may not last. Second, we don’t yet know the full impact of increased unemployment: it could well affect buyer numbers later in the year. The third point, and the elephant in the room, is once again Brexit. When Covid 19 has ceded its front-page status in the news, the Brexit negotiations will surely fill the vacuum. At the same time, the US general election will be hotting up to be perhaps the most divisive and globally important in modern history. There may be an autumn lull in the market while all these issues are resolved.

So, caveat venditor. Let the seller beware. What does this mean in practice? It means make hay while the sun shines. Through a flexible approach, help a deal to go through sooner rather than later. Right now just might turn out to be a better time in the property market than later in the year.

Phillip Bishop from Perry Bishop and Chambers advises caution at a time when the market is showing a robust return after lockdown.

Some buyers have been sharpening their pencils, anticipating a fall in property prices following Covid19. The early indications are that pencils can be pinpoint sharp, but it might not mean a lowering of prices, or that lowball offers will be accepted. Early signs are that there is a great deal of demand in the market across all price sectors and property types.

But still, there have been cases of gazundering: this is the practice of a buyer reducing an already agreed offer to buy a property – often when only weeks or even days away from exchange of contracts.

Gazundering might follow a serious and understandable concern about a property’s condition following a survey, or genuine worry – backed up by market evidence – about a local or regional house price fall.

But sometimes, gazundering is used as a form of tactical coercion. It is not blackmail. It is not illegal. But it’s not nice and it does leave a very nasty taste in the mouth.

Our long experience tells us that gazundering can also heavily backfire on the buyer. It is not uncommon for a seller to pull out of a deal in anger. But that is not all. Today there is another concern. A late-in-the-day price change means a mortgage lender might recheck the buyer’s financial position. If new circumstances come to light – and, let’s face it, Covid19 has badly affected millions of salary and wage earners – a mortgage offer could be adjusted or even withdrawn entirely.

So when buying a property AC – after Covid19 – just as at any other time, caveat emptor – let the buyer beware.

An article taken from Property Reporter.co.uk – dated 10th June 2020

For those who can, working from home has become the new normal as the UK largely remains under lockdown.

And it is therefore not surprising that the desire for office space in the home has seen a notable rise, particularly in the capital where demand has surged since the start of lockdown from 8% to 27%.

According to research by lettings and estate agent, Benham and Reeves, 27% of all stock listed with a home office has now been snapped up by London homebuyers, a huge increase on the 8% demand seen in March.

Not surprisingly, this demand is far higher in London’s more peripheral boroughs, accounting for the top 10 most in demand, with homebuyers looking to avoid a commute into the city with their own home office.

Bexley saw the highest demand for this property feature with 53% of properties with a home office already sold subject to contract or under offer. Hillingdon, Bromley, Croydon, Redbridge, Ealing, Havering, Waltham Forest, Haringey and Richmond also placed in the top 10 for home office, homebuyer demand.

How much does a home office cost?
If you’re holding tight on a move, a home office can be a fairly affordable addition to your home providing you have the additional space. For an average cost of £450 you can kit out your spare room with a desk, chair, PC, keyboard and mouse, while broadband will set you back roughly £32 a month, with the additional use of utilities coming in at £19.

While this total set up will cost you £501 for the initial first month, a fair chunk more than the average £238 cost of commuting in London, it soon starts to pay for itself with broadband and utility bills averaging £51 a month thereafter.

Adding a home office to your home
If you don’t have the extra space for a home office, investing in one could be a worthwhile addition to your home. A small extension to your property, such as an additional room, conservatory or loft conversion will set you back between £16-£21,000.
According to the Hiscox, such an extension could boost your property price by an average of 8.4%. On the current London house price of £485,794, that’s an increase of £40,807.

Alternatively, you could add an outdoor office to your garden if you have space. A basic cabin style outbuilding will start at around £4,000 but can climb to over £20,000 for the more sophisticated ones. However, these are unlikely to add as much value to your overall property’s value, so an extension is money better spent if you do have the budget.

Marc von Grundherr, Director of Benham and Reeves, commented: “Demand for home office space has understandably boomed since we entered lockdown but with many of us reluctant to return to the office, this trend could become a more permanent fixture within the housing market.

“The good news is they can be fairly affordable to get off the ground and even adding one in the form of an extension is likely to make a good investment. Not only will it add value in the current work from home climate, but if you’re smart and make it a versatile space, it can easily double up as an additional bedroom or otherwise for those who aren’t interested in a home office.

“It’s these additional features that can help your property stand out from the crowd and with the market exploding back into life in recent weeks, this could be a great help when securing a buyer.”

As the UK lifts out of lockdown Phillip Bishop of Perry Bishop and Chambers suggests a chat over coffee to consider your next move.

The creator of Thomas the Tank Engine, the Reverend W Awdry, once said that the church was like a railway: both were trying to get people from one place to another.

Estate agents fall into the same category. We move people from one home to the next. And never has moving people seemed more important than now: because never have homes seemed more important to all of us as we battle to defeat the most deadly threat in our lives – and to our way of life – since World War II.

But something big is going on with homes. Our activity has gone through the roof in the past few weeks. The property portals are reporting the highest traffic to their sites – ever. In lockdown decisions to change – to move on – have been made and are now being acted upon.

It is at a time like this that estate agents become very useful indeed. It is their local expertise and market knowledge, which are so invaluable to sellers and buyers. Who would have thought that houses and flats on dedicated cycle lanes would step up in value in only a few months? The answer is, an experienced estate agent.

So if you plan to move home, why not call us for a chat. Better still, arrange a Zoom meeting, FaceTime, or WhatsApp chat over a cup of coffee. You will find that we live in your area, we share and enjoy the same local facilities and we support the same local enterprises. More than that, you will find that we care in a way that goes beyond selling your property. We take care in moving our clients from one place to another.

Estate agents are engines of change. As James and Percy said to Thomas the Tank Engine, “We’re really useful engines, after all”.

Phillip Bishop from Perry Bishop and Chambers reports on a property phenomenon playing out now in a market near you.

The lockdown bounce has already begun. We don’t know how long it will be for, but it is undoubtedly with us now.

Within a day of the government announcement that the home buying and renting process could re-start, the telephone calls and emails began – and we have not stopped since.

People who, for whatever reason, have decided in lockdown to make significant life changes have now joined those who were already on that path in January and February. In the new year we had a Brexit bounce. Now it seems we have a double bounce.

We have already spoken to dozens of buyers who are keen to escape urban environments or in need of a lovely garden. Then there are those whose workplace will change from office to home and they are looking for properties with room for a dedicated workspace. We have heard too from people who have re-evaluated their relationship with their home and now want something different from it.

Our commitment to those who have suffered during this period with ill-health or other issues is total. Our years of experience and in-depth local knowledge are already aiding those who need the support and commitment of sympathetic but practical property professionals. Those who are in difficulty with property matters are not alone in this. We are here to help. We know how to help.

We are taking all the precautions recommended to keep clients, viewers, and our colleagues safe through the tail of this pandemic. If you need to make a move safely and wisely please call your local Perry Bishop and Chambers office.