The latest news from Bill Tandy

Welcome to the latest edition of the Bill Tandy newsletter!

 

We start by taking a look at the new Help to Build scheme introduced by the government, in a bid to make it easier and more affordable for people to build their own home. Ever thought about how much hidden equity is in your home? In some cases nearly £50,000 has been missed, what could this mean for you?

 

Further into our newsletter, we provide you with everything you need to know about the 95% mortgage guarentee scheme, with the goal of helping first-time buyers and aspiring home movers purchase a home. Finally, we explore why most landlords are not planning to increase rents in 2021, as many tenants return back to cities and pre-pandemic lifestyles.

 

 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 .

 

£150m ‘Help to Build’ scheme to be launched

 

The government has announced a new ‘Help to Build’ scheme in a bid to make it easier and more affordable for people to build their own home.

 

Following a statement made by the government, the aim of the scheme is to help ensure that self-custom home building can become a more realistic option for those looking to get onto the property ladder through lower deposit mortgages.

 

It's planned that an initial £150 million will be made available from the government over the next four years to help implement and support the scheme, delivering low deposit mortgages and improving the affordability of homeownership.

 

Similar to the 'Help to Buy' scheme, the 'Help to Build' initiative will provide an equity loan on the completed home.

 

A statement from Robert Jenrick, the government’s housing secretary, said “building your own home shouldn’t be the preserve of a small number of people, but mainstream, realistic and an affordable option for people across the country. That’s why we are making it easier and more affordable.”

 

The announcement was met by an immediate positive response from the property market, further backed by the National Federation of Builders (NFB), who stated that it was "wholly behind the government’s self and custom-build announcements".

 

Whilst supporting homebuyers, this plan will also provide an important boost to small builders and businesses.

 

Applications for the scheme are due to open in late summer, according to the government’s action plan.

 

For more information, go to: https://www.gov.uk/government/news/over-150-million-funding-to-kickstart-self-building-revolution

 

Or contact us to discuss your buying options.

 

 

 

How much hidden equity is in your home?

 

It has been reported that almost half of homeowners are undervaluing their homes, including some cases where the properties were worth nearly £50,000 more than they realised.

 

Zoopla reports that only three in ten people have an accurate idea of how much their home is worth, with 45% undervaluing and 25% overvaluing.*

 

Nearly one in ten homeowners whose property was worth more than expected found that it was valued at over £100,000 more, with 40% located in the London and South East regions.

 

This means that more than one million UK properties could be hiding six figures of hidden equity – unbeknown to the owners.

 

What does it look like in London?

 

35% of London homeowners have found their property to be worth more than expected, by an average of £117,000.

 

Whilst 37% said their home was worth less than they thought, by an average of £49,000. 

 

In light of all the findings, a property in London is worth on average £22,846 more than anticipated, which is more than double the £9,470 national average.

 

What benefits are there for homeowners?

 

It is reported that the benefits from hidden equity have meant:

 

- 81% could improve their lifestyle

- 50% were able to move to a better property

- 18% between 55-64 were able to retire sooner than expected

- 13% could upgrade their car

- 13% went on more holidays

- 8% were able to help get family and children on the property ladder

 

Seven out of ten homeowners would have made different financial decisions if they had been aware of their hidden equity.

 

What could this mean for you?

 

You may be in for a surprise if you check the current value of your home.

 

There are huge benefits to knowing how much your home is worth, particularly if you’re thinking of selling, as the value could influence the type of property or location you move to.

 

Gráinne Gilmore, head of research at Zoopla, explained: "the effects of the pandemic over the last 12 months have been felt in the housing market, with many households reassessing how and where they want to live.

 

"There is soaring buyer demand but this is not currently being matched by homes being listed for sale. Homeowners considering a move could be in pole position in their local market if they offer their property for sale, and could be set to unlock hidden equity."

 

If you’re looking to sell your property or would like to get your property valued, please contact us today.

 

 

*Zoopla’s Hidden Equity Survey is based on research among 2,000 UK homeowners who have had their home valued by an estate agent in the past three years. 

 

 

 

What you need to know about the 95% mortgage guarantee scheme

 

A new mortgage guarantee scheme was announced this spring, with the goal being to help first-time buyers and aspiring home movers purchase a home with a smaller deposit.

 

The initiative, which will be available for new mortgages up to 31st December 2022, is intended to increase the availability of mortgages on new or existing properties for those with small deposits. 

 

This comes after a plummet in 95% mortgages made available last year, as lenders lost confidence in the UK's financial stability due to the pandemic.

 

How will it work?

 

It is based on the Help to Buy mortgage guarantee scheme that ran from October 2013 to December 2016, which backed mortgages for 104,736 purchases – 2.7% of all those in the UK.

  

The average property bought through the scheme was worth £159,170, compared to an average UK house price of £223,000.

 

In terms of restrictions with the latest initiative, only first-time buyers or those moving homes are eligible to apply, not those wishing to buy second homes or buy-to-let properties.

 

First-time buyers and home-movers form a vital cog in the economy and housing market, so government support will play a crucial role in restoring the balance.

   

To get assistance on your mortgage needs, get in touch today, or browse our latest properties to see what's available in your area.

 

 

Why most landlords are not planning to increase rents in 2021

 

As the easing of lockdown restrictions continues, it would seem that tenants are beginning to return to cities and resume their 'normal' lifestyle routines, drawn by reopened venues and attractions.

 

This reversed change in demand, paired with a recent shortage of properties available to let, is fuelling a rise in rental values across the UK.

 

However, the National Landlord Index has revealed that a large margin of landlords (90.2%) believe they have developed a good relationship with their tenants.

 

Following this, 82% have pledged to not increase rent throughout 2021.

 

The report highlighted the fact that many landlords are aware of their tenants' financial difficulties caused by the pandemic and are aiming to keep rent affordable in light of this.

 

On the other hand, only a small margin of landlords (18%) indicated in this survey that they intend to increase rent over the next 12 months.

 

The area revealed as most likely to see a rise in rent was London, with 35% of landlords stating they would be upping their prices, followed by the North West and West Midlands (both with 21% in agreement).

 

The report revealed that Scotland, the North East, East and Northern Ireland had the lowest number of landlords planning to increase rent.

 

We consider the needs of both our landlords and tenants.

 

If you would like to talk about this in more detail, please don’t hesitate to contact us or learn more about our services from our website.

 

 

 

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.