The latest news from Bill Tandy

Welcome to the latest edition of the Bill Tandy newsletter!

 

Have you been thinking about investing in a buy-to-let property this month? We've put together everything you need to know about your next property investment. With the help to buy scheme fully underway for first-time buyers, over 290,000 people are now homeowners since the scheme first launched.

 

Further into our newsletter, with the property market booming we're seen an increase in chain-free properties as sellers are now opting to rent ahead of their next property purchase. Finally, strict new fire regulations have been introduced for HMOs and multi-tenancy building, in an attempt to increase fire safety measures.

 

 We hope you enjoy this months edition.

Eco Friendly Homes Playing an Important Role

 

Climate change has received immense attention recently with urgent calls to reduce the contributing factors to carbon emissions, rising sea levels, and rising temperatures. The UK has committed to reduce its CO2 emissions to net zero by 2050; and this commitment cascades to all markets, including property. This commitment is a great achievement for the UK, with it being the first first-world country to pass law to such a commitment. 

Sadly, the amount of greenhouse gasses produced from heating properties has increased since 2014. Heating our homes accounts to a staggering one seventh of overall UK emissions. Our increased use of fuel can be resultant from heat escaping from properties through walls, windows and ceilings during winter. Luckily, the Government have called an end to the rise in fuel consumption and are devising a plan to battle the emissions producing more energy efficient homes. They are behind an initiative called Future Homes Standard, which is planned to be in full operation by 2025. 

Having more energy efficient homes is a great ambition for all. It will lead to lower carbon emissions, reduced energy bills, and upgraded housing. In 2025, all new build homes will have to abide by the initiative to have clean technology to heat homes instead of the current fossil fuel burned for gas boilers. The construction sector and developers are at the heart of this revolution with their designs crucial to meeting this goal. 

 
The Housing Minister, Esther McVey, said that “industry has told us some homes built using modern methods can have 80% fewer defects and heating bills up to 70% lower. Homes built using modern methods can be of higher quality, greener and built to last. I want to see a housing green revolution.” 2020 is set for an environmental transformation, with the property market a strong contributor to this.

Easter Eggstaraganza 

Saturday 4th April 

 

Follow the Woodland Trail to find the Easter Bunny who's giving everyone free chocolate.

Click here to read Easter Eggstaraganza .

 

Chain-free properties boom as sellers rent ahead of their next move

 

Recent data from Rightmove suggests that there has been a sudden increase in the number of chain-free properties listed on the market, due to sellers being more willing to rent before they purchase their next home.

 

21% of available properties on Rightmove are chain-free, an increase from 15% this time last year.

 

This growing trend for chain-free property sales has been seen significantly in London, which has increased from 12% to 21%.

 

Sellers are often hesitant to come to market because they are unable to find somewhere they want to buy, but with record demand and the stamp duty holiday extension to consider, there is a greater sense of urgency across the sector.

 

Tim Bannister, Rightmove’s director of property data, said:

 

“Selling chain-free is perhaps something some owners hadn’t considered as a possibility before now, but with the competitive market and stock shortage we currently have they’re trying to put themselves in a more attractive position when their dream home comes along.”

 

In London, there has been an increase in landlords who are deciding to sell, pushing up the percentage of chain-free properties on the market.

  

Rightmove have also seen a significant increase in the number of buyers searching for ‘no-chain’ or ‘chain-free’ properties in their keyword search function, as buyers rush to make use of the stamp duty savings available until the end of June.

 

In February 2021, the property portal found that the number of buyers searching for these terms was a staggering 72% higher compared to last year.

 

Do you know your property's value? Book a valuation today to learn more. 

 

 

Over 290,000 are now homeowners due to the Help to Buy scheme

 

The Help to Buy scheme was introduced by the government with the aim of helping first-time buyers get onto the property ladder; designed mainly to overcome the barrier of people not being able to save a large enough deposit to qualify them for a mortgage loan.

 

Help to Buy allows buyers to purchase a new build home with just a 5% deposit, it is then topped up by the government with a 20% equity loan that is interest-free for five years.

 

The number of homes bought using the scheme has increased year-on-year, with over 290,000 buyers having benefitted since it first launched.

 

Who has benefited from Help to Buy?

 

First-time buyers

 

Benefiting the most from the government's scheme has been first-time buyers, accounting for 82% of all purchases.

 

The average price of a property bought using the scheme is £279,995, with a typical household income of £53,218.

 

From April 1st, a new scheme has been launched that is only available exclusively to first-time buyers. As a result, regional price caps will be introduced on the value of properties that are purchased using the scheme.

 

These caps range from £186,100 in the North East to £437,600 in the South East and £600,000 in London. Below is a full list of the regional price caps for Help to Buy.

 

 

Region	Help to Buy price cap
North East	£186,100
North West	£224,400
Yorkshire and the Humber	£228,100
East Midlands	£261,900
West Midlands	£255,600
East of England	£407,400
London	£600,000
South East	£437,600
South West	£349,000

 

 

Buyers in London

 

For most of the country, the equity loan is capped at 20% of the property’s value.

 

However, in London, buyers can apply for an equity loan worth up to 40% of their property’s value.

 

 

Homeowners

 

Whilst those who already own a home or have previously done so have also benefited from Help to Buy, these have only accounted for around 18% of all purchases made using the scheme, with the typical home they bought much more expensive compared to first-time buyers.

 

It is important to remember that the Help to Buy scheme must only be used on your main residence and cannot be used to buy a second home or a buy-to-let property.

 

 

For key information on the 2013-2021 and 2021-2023 schemes, we'd advise referring to: gov.uk/government/publications/help-to-buy-equity-loan-buyers-guide

 

To start your property journey with us, please contact our team today.

 

 

 

Strict new fire regulations for HMOs and multi-tenancy buildings

 

The Home Office recently announced their intention to increase fire safety measures, stating that landlords of HMOs (House in Multiple Occupation) could face unlimited fines if they fail to comply.

 

The new enhanced procedures will be included in the future Building Safety Bill, which will be enforced in approximately 2022 and will apply explicitly to HMOs and other multi-tenancy premises.

 

The exact details are yet to be confirmed, but the government affirm that the act will improve the Fire Safety Order by requiring fire assessments to be recorded for each building.

 

Additionally, the government have verified that the new legislation will:

 

- Include the refinement of how fire safety information is accessed and preserved throughout the lifetime of a building.

 

- Better the quality of fire risk assessments and the expertise of those who perform them.

 

- Enhance communication and the organisation amongst those responsible for implementing fire safety and making it easier to identify who they are.

 

- Strengthening enforcement action, distributing unlimited fines to those impersonating or obstructing a fire inspector.

 

- Reinforce guidance in regards to the Fire Safety Order, which makes it easier to hold those who breach compliance in court.

 

- Improve engagement between Building Control Bodies and Fire Authorities when reviewing building work.

 

- Instruct all new flats above 11m tall to install information boxes.

 

If you'd like to talk about this in more detail, please don’t hesitate to contact us or learn more about our services for landlords.

 

 

 

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.

 

 

 

Mad Hatter's Tea

Thursday 9th April 

 

Enjoy an afternoon tea in the school holiday's with fun, craziness, singing and dancing.

Click here to read Mad Hatter's Tea.

Wedding Open Day

Sunday 19th April 

 

If you are planning a wedding for 2020 or 2021 this wedding day is a perfect chance to see dressed rooms.

Click here to read Wedding Open Day.