Finn's Newsletter: Spring 2021, Issue No.4

Home improvements to help boost your house price

 

Whatever your budget, there are plenty of ways you can add value to your property before selling this year.

 

For inspiration on where to start, have a look at these home improvement suggestions, ranging from high cost to low:

 

Conservatories or sunrooms – adding a conservatory or sunroom is one of the most cost-effective ways to add more value to your home, with an estimated 6% uplift to the value of your property.

 

Updating your kitchen or bathroom – it is often said that potential buyers will look at the kitchen and bathroom first before they pursue a property.

 

Updating your kitchen or bathroom isn’t always the cheapest home improvement option, but it is one that can certainly boost your value by a significant amount, with an average property value increase of 5.5%.

 

If this home improvement option doesn’t quite suit your budget, but you still think these rooms could do with a refresh, replacing old worktops or cabinet doors is a fail-safe way to improve the overall look.

 

Updating old boilers and central heating – a new boiler or central heating system is a key element to consider if yours hasn’t been updated recently.

 

A dated or inefficient heating system could put potential buyers off, as this will result in more hassle for them after moving in.

 

Fixing a damaged roof – improving the core foundations and features of a property is always a safe bet.

 

A new or fixed roof is essential for both insulation and structural purposes, and – again – will save buyers from having to take on the task themselves.

 

Upgrading the home to be smart and energy-efficient – energy-saving smart home improvements are not only good for the environment but are also a great addition to have to add value to your home.

 

This can be achieved by installing smart lighting, using energy-efficient LED bulbs, followed by upgrading to eco-friendly appliances, adding double glazing and upgrading insulation.

 

Creating a defined sunspot in the garden – a recent survey by Rightmove showed that properties with a south-facing garden could be worth up to £22,000 more than those without.

 

There’s not much you can do to change the orientation of your garden, but if you don’t already have a defined sun-spot, creating a zone for this will help potential buyers picture themselves living there and enjoying the weather and seasons to come.

 

Redecorating – decorating can make a world of difference to your home, whether that’s a fresh coat of paint, updating wallpaper or installing new carpet.

 

It’s also important to remember to stay neutral and avoid any loud colours that could deter potential buyers.

 

Tidying up the front garden – the front garden is the first thing that welcomes people to your home, so it's important to keep your garden up to scratch.

 

  

Before beginning any major project, it’s important to ensure that you are spending your money wisely and understand the cost versus the potential return you will gain.

 

Get in touch with us today to talk about your home improvement plans and get advice on what will make the most difference to your home's value.

 

 

 

Housing market sees the strongest spring for home sellers in a decade!

 

Many of us have been thinking about selling our homes in recent months, with a record number of buyers enquiring about properties on Rightmove.

 

Compared to this time last year, demand levels are 34% higher; even in light of the market's pre-pandemic surges in activity at the start of 2020.

 

There were moments of concern when thinking about how the rest of 2021 was going to play out, with a predicted cliff edge, but thanks to the stamp duty holiday extension and the 5% deposit scheme, buyer demand will be further boosted throughout this month and next.

 

The average asking price for a home coming to the market has risen by 2.7% in just the past 12 months, bringing the average house price to £321,064 in the UK.

 

National average asking prices.

 

Month	Avg. asking price	Monthly change	Annual change	Index
March 2021	£321,064	+0.8%	+2.7%	248.2
February 2021	£318,580	+0.5%	+3.0%	246.3

  

 

Despite fewer properties coming to market, the number of sales agreed for the first week in March was still 12% higher than 12 months ago, whilst almost two out of three properties currently on agents’ books are sold subject to contract.*

 

If you are thinking about taking advantage of this incredible demand and would like a quick sale, please book a valuation to start the process.

 

 

 

*Source: Rightmove

 

 

What you need to know when investing in a buy-to-let property

 

Investing in a buy-to-let property is a dream that many of us will have at one point or another.

 

Property has always been a dependable investment option, with successful landlords able to set up their rentals to run like clockwork whilst benefitting from an additional source of income.

 

Before considering your first step, there are some key considerations to be aware of.

 

 

It won’t happen overnight

 

As much as we would like to say otherwise, having a buy-to-let property doesn’t just happen overnight.

 

Just like starting a new business venture, there are rules and regulations you need to comply with to protect yourself and your property.

 

Whilst some of these components can take time to understand and navigate, lettings agents like ourselves are fully equipped to guide you through all of the requirements.

 

 

Know the area you’re planning to invest in

 

It’s important to do your research on the area before signing on the dotted line, such as speaking to local agents about seasonal trends and rental yield opportunities.

 

Is it a hotspot for rental demand? Are there any attractive amenities, universities or transport links nearby that would appeal to tenants?

 

 

Ensure you can afford a buy-to-let deposit

 

Whilst a standard home can be secured with as little as 5% of the price of the property, a buy-to-let investment is usually much higher.

 

The average deposit is 25% for a buy-to-let mortgage.

 

It's also likely that your income will be evaluated, as you need to be earning at least £25,000 a year for most lenders.

 

 

Think about your target tenant

 

It’s important to put yourself in the shoes of a tenant and consider what they would want from a property.

 

Being a flexible landlord is key to ensure that tenants stay for longer, which is always great news for a landlord as you can minimise on void periods and secure your rental income.

 

When you have your buy-to-let property ready to market, it is a good idea to position your home based on the type of tenant you’re targeting, such as using the right communication methods to reach them.

 

 

For guidance on how to start your buy-to-let journey, get in touch with our experienced team.

 

Half of tenants have no home insurance

 

A recent report conducted by Nationwide Building Society has shown that 48% of the UK private renting population have no home insurance cover at all; which roughly amounts to 2.13 million households spread out across the UK.*

 

Landlords hold a lot of responsibility regarding caring for their tenants.

 

An estimated 18% of tenants believe that their landlords arrange contents insurance for them.

 

It is important to note that a landlord’s insurance policy will not cover assets such as the furniture and electronics you own during your occupation, as standard.

 

On the other hand, whilst the cover responsible for landlords to sort out is buildings insurance, 26% of tenants were mistakenly paying for this according to the findings.

 

Darren Black, head of general insurance at Nationwide Building Society, stated:

 

“It’s concerning that many renters don’t have contents insurance and are living under the mistaken belief that their landlord has cover in place to protect their belongings if they are lost, stolen or damaged. They could also be putting their tenancy at risk as many landlords stipulate that they must have cover in place as part of their tenancy agreement.

 

When finances are tight, insurance can seem like an unnecessary expense, but without it you could end up losing everything you own. The majority of home insurance claims are for accidental damage, particularly at the moment when many of us are spending much more time at home.”

 

 

We’ve quickly summarised a few misconceptions regarding home insurance to help keep you informed:

 

‘I don’t own much so insurance is pointless’: It's easy to underestimate the value of our belongings until something happens to make us feel the loss more poignantly.

 

The value of your possessions adds up quite quickly; especially when considering any high-value jewellery, personal belongings and kitchen appliances you might have brought into the home.

 

‘I’m really careful, liability insurance seems a waste of money’: That may be true, but in life, accidents do happen.

 

Imagine you are leaning on someone’s fence whilst waiting for a friend and it breaks. You are responsible for paying for it despite it being an accident.

 

Your liability insurance (which could form part of your tenant insurance) will protect you from paying out of your own pocket.

 

‘If I have to leave in the case of a fire or theft, my landlord will help me’: Your landlord is not there to pay your living expenses whilst you’re waiting for repairs to be made or insurance claims to be sorted. 

 

 

If you're in any doubt about needing insurance for your contents, we urge you to speak with a professional advisor, as online comparison sites can lead to your contents being undervalued and underinsured where guesswork is involved.

 

To be connected to a trusted source of information, contact us today.

 

 

*Mortgage Introducer