The latest news from Bill Tandy

Welcome to the latest edition of the Bill Tandy newsletter!

 

As demand continues to outstrip supply, gazumping is becoming increasingly popular, we share with you ways you can avoid this with your property sale or purchase. Have you ever considered shared ownership as an opportunity to get on the property ladder? We provide you with an easy guide to help you decide whether it may be the right option.

 

Further into our newsletter, we take a look at what the stamp duty holiday buzz has led to, before exploring what is next for the property market over the upcoming months.

 

 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 .

 

Ways to avoid gazumping with your property sale or purchase

 

With the property market heating up, gazumping is becoming all too common as demand outstrips supply.

 

In this article, we explain what gazumping is, and – most importantly – how to avoid it.

 

What is gazumping?

 

Gazumping is when a seller accepts a higher offer from another buyer after having already accepted one.

 

Between accepting an offer and exchanging contracts, a lot can happen, so it's important that both parties understand that neither side has a legal obligation until they have signed on the dotted line.

 

Whilst initially attractive on the side of the seller, gazumping could actually delay your sale, cost you more money or result in a fallen-through agreement in some cases.

 

Top tips to prevent gazumping

 

Look for the best mortgage rates

 

Knowing your options and being pre-approved by a lender shows you are a serious buyer, and a more reliable option than a gazumped offer that would only end up costing the seller.

 

Develop a good relationship with the seller

 

Having a good relationship with the seller is key to staying in their mind.

 

This means getting things done quickly and efficiently, as well as communicating any changes as transparently as possible.

 

Highlight why you’re a good candidate

 

Are you a first-time buyer? Paying cash? Or buying without a chain?

 

The less likely the sale is to fall through, the less likely you are to be gazumped.

 

Ask the estate agent to mark the property as sold

 

If the estate agent hasn’t marked the property as Sold Subject to Contract (SSTC), it’s a good idea to ask them, as it will minimise attention from other parties.

 

 

Need advice from a professional on your next sale or purchase? Contact our team today.

 

 

 

Could shared ownership be the answer for you

 

 

This easy guide to shared ownership will help you decide if it’s the right option for you.

 

What is shared ownership?

 

Shared ownership schemes are run by councils, local housing associations and property developers.

 

If you buy with a shared ownership, you will own a percentage of your property for the amount you can afford, whilst paying rent on the remaining amount.

 

This gives you the opportunity to get on the ladder as an owner-occupier, benefiting from long-term stability but without overstretching yourself.

 

Purchasers are then able to buy more and more shares, in most cases, until they've reached 100% and are no longer required to pay any rent, just their mortgage.

 

What is a shared ownership mortgage?

 

There are affordable mortgage products for those wanting to buy into shared ownership, as the number of lenders accommodating this route to homeownership has increased.

 

You will also find that deposits are generally lower, as they will be based on the value of the share you're buying. 

 

How is stamp duty applied to shared ownership?

 

Buyers can make a one-off payment when buying the property so that stamp duty won’t be added when buying further shares.

 

Alternatively, you can pay stamp duty tax in stages, initially on the value you own and then with further payments once you own 80% of the property.

 

Can I sell my shared ownership home?

 

You can sell your shares at any point, only with sole autonomy as the seller once you control the full 100% of the shares.

  

For more information on how to buy your first home, contact our team today.

 

 

 

 

It’s important to note that rules for shared ownership may vary across the UK.

 

A look at what the stamp duty holiday has led to

 

Since its launch, the stamp duty holiday has led to phenomenal sales numbers for England's property market, with 50% more transactions in Q1 2021 compared to the previous year, pre-pandemic.*

 

Now, with the tapered end of the holiday in sight, we take a final look at what the property market has seen over the last year, and what is still to come.

 

Originally intended to stimulate the market after its spring closure in 2020, the SDLT holiday has triggered a house buying boom, with price surges up and down the country and buyers scrambling to put in offers at record speeds.

 

Even for buyers who may have faced higher property prices over this time, the value of buying with a smaller upfront cost meant that homebuying was an affordable option for 100,000s.

 

In fact, one survey suggested that four in ten Brits (39%) were able to take advantage of the government's initiative, with many finding themselves better able to save for deposits and moving costs with limited lockdown options.**

 

Following the end of the SDLT holiday on the 30th September, the rates will be as follows:

 

- 0% up to £125,000

- 2% on £125,001 - £250,000

- 5% on £250,001 - £925,000

- 10% on £925,001 - £1.5m

- 12% on any value above £1.5m

 

For advice about buying and selling in 2021, we'd like to offer you our support. Please contact us today for more information.

 

 

*Mortgage Introducer

**Show House

 

 

 

What’s next for the property market over the next few months?

 

Having contributed to record-breaking sales numbers over the last year, we consider what's next for the property market following the approaching end of the stamp duty holiday.

 

For first-time buyers

 

Introduced by the government this spring, the 95% mortgage guarantee scheme has encouraged lenders to offer lower deposit options, paving the way for the return of first-time buyers wanting greater flexibility and freedom becoming homeowners.

 

This scheme is set to close to new applicants in December 2022, with the government’s total investment expected to reach over £20 billion.

 

Flexible mortgage schemes

 

In support of the government's help-to-buy option for first time buyers, we are seeing banks and developers coming together to create other schemes that could essentially replace the government’s help-to-buy scheme when it comes to an end.

 

An example would be the Deposit Unlock Scheme, which provides buyers with a package that allows them to buy new build homes up to a value of £330,000, with a 5% deposit and 3.5% mortgage rate – fixed for two years.*

 

High street banks are also beginning to offer 5% mortgages, which offers to lend buyers an extra 10% of a traditional 15% deposit, requiring buyers to only front up 5% themselves.

 

Looking ahead

 

Existing and new incentives will boost a drive in the first-time buyer market and are likely to have a similar impact as the SDLT holiday.

 

Other new schemes could involve cuts to SDLT rates, particularly with second home purchases in order to get this section of the market moving again.

 

Are you looking to buy this year? Get in touch with us today.

 

 

*Newcastle Building Society

 

 

 

 

 

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.