How much? A rough guide to the cost of home improvements
Do you know what the average costs are for some of the bigger jobs around the house? For example, how much would it cost you to build a new extension? What about rewiring the place? And have you got any idea how much it would cost to replace all the windows?
If you’re thinking about buying a property or selling a property in Notting Hill, it’s useful to get a figure in your head for any works that might wish to carry out. Below is a very rough guide to the cost of some of the more common jobs. Bear in mind, those figures will vary considerably depending on the size and complexity of the job. You should also be aware that building costs vary across the country and are typically higher in London and the Southeast. For truly accurate figures, you should always get quotes from local specialists.
1) New central heating system – Based on a fairly typical 3-4 bed house and a tight budget, ie no fancy radiators or control systems, expect to pay around £4,000.
2) Extension – A 5m x 5m single storey extension would cost around £40,000 or nearer £60,000 in London (appx £1,200 to £1,500/sqm). This does not include fitting a kitchen or bathroom (see costs below). A two storey extension with a similar footprint would be roughly double the price.
3) Attic extension – A simple, single room conversion could cost as little as £15,000, but if it involved alterations to the roof structure on an average sized house, it could cost anywhere from £40,000 upwards, depending on the size of the space and the complexity of the changes.
4) New Kitchen – The cost of a new kitchen can vary wildly, depending on the spec. A rough ballpark figure for a new family kitchen is around £8,000. If you buy it from IKEA and build it yourself, you could reduce the cost by half, but if you want a designer one with all the latest gadgets, you can easily spend upwards of £20,000.
5) New windows – The cost of these will be dictated by the size and type required. An average sized UPVC window would cost around £700 and a timber sash one £1,300. Some manufacturers will offer discounts for larger orders.
6) Rewire the house – A two bed house could cost around £2,500, a three bed just over £3,000 and you should allow £4,000+ for a four bed house.
7) New bathroom – The average bathroom installation costs £4,500, according to Victoria Plumb, but the costs will increase considerably if you specify expensive tiles and fittings, live in London or have a larger than average bathroom. And, if you like things like gold taps, you can add a nought on to that figure!
8) Flooring costs – Like everything else, this varies according to the quality of the products specified and the size of the room. Tiles - As a rough guide, a mid-range tile costs £20-£40/sqm and anywhere between £30-£45/sqm to lay. Wood floor – Laminate prices start from as little as £4/sqm, engineered flooring ranges from £20-£75/sqm and solid wood flooring from £25-£100/sqm. Fitting is between £10-£30/sqm. Carpet – Carpet £7-£30/sqm (although you can pay considerably more), underlay £4-£10/sqm and labour £4-£6/sqm.
9) Replace a tiled roof - A small mid-terrace house with a roof of 55sqm would cost around £4,000 to retile with mid-range tiles, but a larger, detached 4 bed house could cost up to £8,500. The price is dependent on the size and complexity of the roof and the type of roof tiles you use - you can add about 25% extra for slate.
10) Basement – Conversion of an existing cellar would cost £750-£1,400/sqm. Lowering an existing one would cost between £1,500-£2,000/sqm and £2,000-£3,000 to create a new one.
11) Conservatory – Typically, they cost between £6,000 and £20,000, depending on the size and quality.
12) Solar panels – Installing solar panels to power the average house (3-4kW) would set you back around £6,000.
It’s all a matter of taste
These days, interior design is becoming ever more flamboyant. White walls and minimalism are rapidly being replaced by lurid colours and clashing patterns. It’s a far harder trick to pull off than those white walls of old. When it’s done well, it can produce some very striking results. When it’s done badly, it can be an unmitigated disaster.
In reality, it probably requires a designer’s eye to do it properly, but that’s unlikely to stop us. Most of us like to think we’ve got good taste. As far as we are concerned, bad taste is something other people suffer from. We show off our new three-piece suites as though they were the world’s most desirable objects. We invite the neighbours around for dinner, just so they can admire our newly decorated sitting rooms with their feature wallpaper. We never imagine for one moment that when they go home they will be saying how vulgar it all was. No, we imagine them filled with envy at our fabulous sense of style.
A recent survey by furnishing store Homesense found that 59% of us believe others aspire to our sense of style and 65% rate our homestyle as excellent.
Now let’s just do a reality check for a moment - how many of your friends have got a sense of style that you truly aspire to? More than half of them? And how many of them have got an excellent sense of style? Two-thirds of them? Thought not. Actually, what this survey is telling us is the extent of our self-delusion when it comes to matters of taste and style.
The problem is, good taste is not something that can be easily measured. There are no right or wrong answers. Your parents probably thought themselves just as tasteful as you do, but what do you think of their style? Old-fashioned? Boring? Your children will almost certainly think the same about you.
Even when you take a look at some good quality interiors magazines, the self-styled arbiters of taste, you won’t love everything on show. You might even hate some of the designs. Everyone has a different idea about it. The people most likely to share your taste are normally to be found in your own peer group – ie they’re about the same age as you and share very similar backgrounds and interests. Even that’s no guarantee.
The issue of taste really comes to a head when you are trying to sell your house, and the latest over-the-top schemes makes things far trickier. They couldn’t be any further from the plain magnolia colour schemes so often recommended by the experts. Even when bolder designs are brilliantly done, not everyone will like them and not everyone who likes them will want to live with them. What makes matters worse is that when we are selling, we are often doing so to a completely different peer group to our own because we are moving onto a different stage in life. That different peer group will almost certainly have very different design ideas. It’s even more of an issue for lettings when the property is furnished because the tenant won’t just be able to change everything once they move in.
One thing we can be sure about is that we all share a common desire to personalise our homes, to make them our own in some shape or form. Bold designs can be overpowering and make it far harder to imagine how you might make a home your own. It puts an unnecessary barrier in the way of the sale and instantly limits your market. But most of us, when we read in the property press, about the need to depersonalise a house, think it only applies to other people. We are convinced our décor choices will actually aid the sale or the rental. Are we kidding ourselves? Probably.
How to find a good builder
If you’re buying at one of our auctions, the chances are you will be buying a probate property. They tend to have belonged to older people, so they often require updating. However, if that’s not something you regularly do, finding a good builder to undertake the work is a challenge that often fills us with dread. It seems, every time you go to a dinner party or switch on the TV, all you ever hear are stories about cowboy builders, spiralling budgets and huge project overruns. So what can you do to avoid this happening to you?
The good news is that finding and hiring a good builder is not quite as difficult as you may think - you just need to follow a few simple but logical steps.
A recommendation from your friends and family is the ideal starting point, but if you don’t know anyone in your immediate circle that has had work done recently, don’t give up. You can spread the net a little wider by sending an email/WhatsApp/facebook message to all your trusted contacts, outlining exactly what you are looking for. If that fails to unearth a good builder, you can turn to one of the professional trade organisations, such as the Federation of Master Builders or the National Federation of Builders. Both organisations have a find a local builder service. The advantage with them is that their members have already been vetted and should work to certain standards. If anything does go wrong, they both have mediation services. You can also try one of the independent rating sites, such as www.checkatrade.com, www.mybuilder.com or www.ratedpeople.com.
It’s not just about choosing a good builder, you also need to choose one that is right for your particular job. Scale is important and so are your own, individual requirements. If you are building a large extension, don’t hire a one-man band and, equally, don’t hire a large company to do a small job. It’s best that they have the most relevant experience possible, so, for example, if you are having work done on a listed building, try and find a contractor that has experience in that area rather than someone who does a lot of new build work.
Whichever method you end up using to find your builder, you should put them through your own vetting process and you should always feel comfortable with them as you may need to work together for several months. Good references are essential, but don’t just take them at face value. Try and visit a couple of their recent projects and, ideally, speak to the owner of at least one of them.
Ask them about the quality of the work carried out, the reliability of the contractor and whether there were any budgetary or financial issues with the project. Don’t be embarrassed about it either. If you are spending tens of thousands of pounds on the project, think about how much worse you'd feel if it went wrong.
On the subject of things going wrong, any contractor doing anything more than a minor piece of work should be fully insured - ask to see copies of their insurance policies. And be wary of any professional qualifications or memberships on business cards and letterheads, as these can easily be faked, so check with the relevant organisations to see if they are genuine.
Having shortlisted your potential candidates, the next step in the process is to get them to produce a detailed quote and an estimate of the timetable for the job. In order to make this as accurate as possible, make sure the description you provide of the work required is as detailed as possible. Also, you should know there is a big difference between a quote and an estimate. An estimate, unlike a quote, is merely a rough guide or a guess. Sometimes an estimate is valid, for example if there are some unknown issues involved, such as whether existing foundations are suitable for a new extension, but mostly you should be very wary indeed of an open ended estimate.
Don’t chose the contractor solely on the basis of the cheapest price; you will probably be spending a lot of money and you will have to live with the results for a number of years. Neither should you choose a builder on the basis of his immediate availability, as a good builder is normally in demand and may not be able to start work immediately.
Once you have decided on your builder, tie down all the loose ends of the job and write a formal contract with a start and completion date. You can add in an overrun penalty clause but be generous with its timings. If you don’t know how to set up a contract, you can download a number of standard ones for free from the Federation of Master Builders’ website (you will need to register).
Within the contract you should also agree payment stages. There are always unexpected extras involved in any sizeable building project, so you should allow for the budget to run over by around 20%. Never pay too much money up front and don’t be tempted by a VAT free deal, it means there will be no paperwork to fall back on if it all goes wrong and such dodgy accounting standards may also be reflected in the building work. Finally, set up a regular meeting to check on progress and if you are not happy about anything, flag it up.
Celebrities That Have Lived Or Live In Notting Hill
Celebrities That Have Lived Or Live In Notting Hill
Notting Hill famous to the stars
- Jennifer Lawrence
- Lindsay Lohan
- Keira Knightley
- Harry Styles
- Hugh Grant
Notting Hill is north of Kensington, south of Bayswater and east of Holland Park. The area has been home to many celebrities over the years. This article will talk about some that have lived or live there now!
Jennifer Lawrence
Jennifer Lawrence is a world-famous actress that has starred in many movies such as X-Men and The Hunger Games. On August 15th, 1990, she was born in Louisville, Kentucky and grew up there until she moved to New York City at age 14. In her early twenties, Jennifer began working professionally as an actress with roles in projects like "Inception" and "Winter's Bone".
Lindsay Lohan
Lindsay Lohan is a celebrity that has lived in Notting Hill for several years. On July 24th, 1986, Lindsay was born in New York City and is an American actress, singer, and fashion designer.
She began her acting career with a guest appearance in "The Parent Trap" at 11. She became well-known for portraying characters such as Cammie (Camp Rock), Stewart (Confessions of a Teen Idol) and Sam (A Prairie Home Companion). Lindsay Lohan now lives at 19 Hyde Park Gate in Notting Hill, where her father lived when he was younger!
Keira Knightley
Keira Knightley is a world-famous actress that has starred in many movies such as Pirates of the Caribbean and Pride & Prejudice. On March 26th, 1985, she was born in Teddington, London and grew up there until she moved to Hampstead with her parents at age six.
At 14 years old, Keira was cast in a show called "The Bill" and began her acting career. She has starred in leading roles in movies such as King Arthur, Loves Actually, The Jacket, and the Caribbean series Pirates.
Keira was nominated for an Academy Award for Best Actress on December 25th, 2005, at age 20, when she played Elizabeth Swann/Elizabeth Turner in Pirates of the Caribbean: The Curse of the Black Pearl. Keira Knightley lives in Notting Hill at an apartment located on Draycott Place!
Harry Styles
Harry Styles is a world-famous singer and songwriter who starred as one of Hollywood's most influential young stars today. On February 12th, 1994, he was born in Redditch, United Kingdom and grew up there until he moved to London at age 16. Harry is a member of the boyband called One Direction that has released five albums since 2011.
Harry Styles became famous for his looks and songwriting ability when he was on a television show called "The X Factor" with other bandmates. After the show, One Direction went on hiatus in March of 2016 to focus on solo careers and released a documentary called This Is Us about their lives together. Harry Styles currently resides at 25 Draycott Place!
Hugh Grant
Hugh Grant is an English actor and producer that has starred in many movies such as Four Weddings and a Funeral, Notting Hill, Bridget Jones's Diary and About A Boy. He was born on September 12th, 1960, in London but grew up mainly in Oxfordshire. Hugh first found work as the lead singer of the pop band Johnny English.
Hugh lived in Notting Hill at 24 Draycott Place for over 20 years before moving to Los Angeles on January 12th, 2016.
These are the celebrities who live or have lived in Notting Hill.
Protected trees (TPOs)
These days, it can sometimes seem like trees have more rights than people. If you want to remove one, or even prune it and you live in a conservation area or the tree has a TPO (Tree Preservation Order) on it, you will have to ask for permission to carry out the work.
So what are TPOs and are they something you need to know about?
TPOs were first introduced in 1947 and are designed to protect trees that, in some way, provide a local amenity. They don’t have to be hugely special. For example, a tree could be given a TPO because they are a local landmark, are of a certain age or size, or simply because their removal would have a negative impact on the public’s enjoyment of the local environment. To give you an idea of how common they are, there are over 600 TPOs in just one London borough (Merton). And that’s excluding the thousands of trees in the vicinity that are protected by virtue of being in a conservation area.
The numbers are not surprising. It’s not difficult to get a TPO. You simply put in a request to your local authority and if they think you have a case, within twenty-four hours they will grant a temporary TPO. After that, they will consult with interested parties over whether the listing should become permanent. For this reason, when building work is about to take place, trees are often cut down by the owners/developers before any planning application is made. A last minute TPO instigated by an agitated neighbour could bring the entire project to a halt.
Once a TPO is in place, it is a criminal offence to do anything that may harm the tree, including lopping and felling it without express permission from the Local Authority, which may not always be forthcoming.
As Arborist Rick Meldon of R.Meldon Tree Services (www.rmeldonstreelife.co.uk) explains,
“The purpose of a TPO is to protect a tree, so that is Local Authority’s default position when dealing with any applications.”
However, you are likely to be given permission to prune a TPO tree by up to 20% and, under certain circumstances, you may be able to fell the tree. For example, if the tree is dead, dying or dangerous. The same applies if it is causing significant damage to buildings, ie to roof tiles, walls or if it is causing subsidence. There are also degrees of protection - for example an ancient oak on public land is likely to receive a far higher degree of protection than a relatively ordinary but large tree in someone’s back garden.
“And,” says Rick, “Local Authorities aren’t ogres, they will regularly offer you alternative suggestions if you cannot do exactly what you have requested.”
One oddity of the TPO rules is that if a TPO tree is in the way of an extension, there’s very little possibility of removing it. On the other hand, if you demolished the entire building and started again, you would have a far better chance, as new developments are looked upon more favourably. One thing that is very clear is that, when it comes to TPOs, you have no right to light. If the tree is completely overshadowing your house, it’s bad luck.
For those of you who decide to ignore all the official processes and just go ahead and cut down a TPO tree, there’s a good chance you’ll be reported and most commonly by a neighbour. It could lead to a fine of up to £20,000 or more. If the court deems that, as a result of removing the tree or trees, that you have benefitted by an uplift in value to your property, you could be fined by an equivalent amount.
Lichfield District Council is one of the few who publish their fines, which range from £16,000 for felling a TPO oak tree and damaging the roots of other TPO trees during construction works, to an £1,800 fine for the sub-standard pruning of a TPO tree and failing to serve a Notice of Intent to undertake the works.
If you want to do anything with a TPO tree, it’s best to first consult a professional like Rick Meldon. Applications take up to 8 weeks and if you are not successful, you can appeal to the Home Secretary. And if you are not sure whether a tree has a TPO on it, check it out with your local council.
Conservation area trees are far less controversial. You need to ask for permission before pruning or cutting down any tree whose stem diameter is at least 75mm, measured at 1.5m above the ground. The Council then has 6 weeks to either place a TPO on it, or if the tree is of no particular significance, allow you to get on with the work. The penalties for unauthorised work can be quite high – a few years back, a Norwich resident was handed a fine of £2,000 per tree for felling 11 trees without permission.
If you want to check if a tree has TPO, just use this link - https://www.gov.uk/apply-work-on-protected-tree
Keeping a cool head this summer
The sun has finally come out (for a while, anyway) and the temperature is rising. For most of us, it’s a truly joyous time of year – ice creams for the kids, cocktails in the garden and barbecues galore. For those whose homes get unbearably hot, however, it can be anything but – with energy-sapping days and sleepless nights. And it’s even more of an issue if you are working from home, as there is no escape.
There are some things you can do, though, to make your home a little more comfortable without having to go to the expense (and the running costs) of buying an air conditioner.
1) The best (and most obvious) course of action is to create some sort of through-draft. Ideally, that means opening windows on two different sides of a building. It’s not a disaster if all your windows are on the same side – just open up the windows in all the rooms and keep the doors open between them (wedge them open if necessary, as they often blow shut).
2) If you’ve got them, you should also open up any rooflights. Warm air rises, so it is an extremely effective way of allowing any built-up heat to escape.
3) Even if you have just one opening window, you can still point a fan at it and it will blow out some of the hot air and create something approaching a through breeze.
4) For those who have sash windows, try opening both the top and the bottom panels -the theory is that cool air enters at the bottom and exits via the top.
5) If your windows are south-facing, it’s best to keep curtains and blinds closed until the sun has moved away. At the same time, keep the windows open as they can still generate a breeze. If it is practical, you could also apply some solar control window film which is claimed to cut down heat gain by as much as 77%. Alternatively, you could fix some awnings to the outside of the windows.
6) One of the lesser-known hacks to a cooler home is to leave bowls of water around the house or even wet sheets - the evaporation process can cool the air.
7) House plants will do a similar job, as they will also release moisture into the air.
8) Fans are always useful but one of the cleverer hacks is to place a bowl of iced water in front of them, ensuring the air they blast around the room is super-chilled.
9) Household electrical equipment can contribute significantly to the problem as they often generate considerable amounts of heat. Avoid using tumble dryers, dishwashers and ovens. Dry your clothes outside and cook on the barbecue. And don’t forget to turn off lights, computers and TVs when you are not using them. Buying some low energy bulbs can also make a big difference, especially if you are replacing halogen ones, which are typically used in recess downlighters. They put out so much heat they will burn you if you touch them.
It's at night we suffer the most, so you’ll be glad to hear there are some excellent tips for keeping you cool in bed.
1) Before you go to bed, take a cold shower - it will bring your body temperature down at just the right moment.
2) Ditch the duvet and stick to sheets. And make sure those sheets are made from natural materials. There’s also a whole range of extras aimed at making your bed cooler, from special mattress toppers to heat controlling pillows. You can even buy a flexible silicone ice pack, which you slip into the bottom of your pillowcase.
3) For those on a budget, the freezer is your best friend. You can freeze anything from sheets to pyjamas and pillowcases. Just pop them into a sealable bag! Another great tip is to fill a hot water bottle and then freeze it.
If, after all that you’re still too hot, you’ll just have to admit defeat and buy yourself a portable air conditioner. Prices start from about £300-£400 but be warned, that's just the start of it, as they cost a fortune to run.
Buy-to-let in Notting Hill
Buy-to-let in Notting Hill
There are quite a few changes afoot in the rental sector at the moment. Rents are rising steadily - up by 0.8% in March and by 3.4% annually (source: Homelet). However, according to new research by Nationwide, the rental market might be about to get a major boost. 40% of the tenants they interviewed from the private rental sector are now considering moving home. That’s compared to 32% of homeowners with a mortgage, suggesting rental demand could soon surpass the unprecedented levels currently being experienced in the sales market.
At the same time, buy-to-let lender, Paragon, has revealed average yields on BTL properties had risen to 6% in the first three months of this year. That’s up 0.2% when compared to the final quarter of 2020, which could well encourage some further investment in BTL properties.
It’s not all good news for landlords, though, there is yet more legislation they now have to contend with. The government’s new ‘Breathing Space’ initiative kicked off on 4th May. The scheme aims to give those who have gotten into financial difficulties time to get advice and organise an action plan to deal with their debt/s. Charges, fees and interest on debts will then be frozen for up to 60 days. Landlords will be notified by The Insolvency Service if one of their tenants is put onto the scheme and, during that period, landlords will have to put any eviction proceedings on hold. Landlords must also now include details of the scheme in their documentation when they seeking to regain possession or the eviction could be rejected. Although the legislation is well-intended, the new scheme is likely to leave landlords having to deal with ever more paperwork and intractable rental arrears.
What may also soon have an effect on demand in both the sales and rental sectors is the government’s much heralded Mortgage Guarantee Scheme, which kicked off last month. 95% mortgages had almost completely disappeared from the market as lenders tried to minimise their exposure to high value loans during the height of the pandemic. Many first-time buyers were effectively locked out of the sales marketunless they were able to raise at least a 10% deposit.
The scheme aims to give them a leg-up onto the property ladder. Under it, the government is guaranteeing lenders the proportion of the mortgage that’s over 80%. For a 95% mortgage, for example, that means they are guaranteeing 15% (5% is the deposit). Both first-time buyers and home movers are eligible. It’s exclusively for repayment mortgages of between 91% LTV and 95%LTV. Unlike some previous schemes, it can be used for the purchase of both new and existing homes.
Already, it has led to a large number of high street lenders launching new 95%LTV products. Amongst them are Barclays, Halifax, HSBC, Lloyds Bank, NatWest and Royal Bank of Scotland and Santander. Rates are, typically, a little higher than they are for those with larger deposits, hovering around the 4% to 4.5% mark.
It’s too early to see how popular the scheme will be. If take-up is high, it could provide a significant boost to the sales marketbut at the same time, take some of the heat out of the rental market.
House makeover and it's value
Making the most of your makeover budget
It’s estimated that, as a result of lockdown, we are now sitting on a giant pile of money - £180bn, to be precise. That’s 10% of our Gross Domestic Product (GDP)! So, what are we going to do with it all? Having spent so much time in our homes, we now know their every lump, bump and defect and we have been going home improvement crazy. But if you’re planning on making some improvements, what is going to give you the best return for your money?
PropertyHeads has produced a home improvement calculator that will tell you exactly that. If you want maximum bang for your buck – it’s cavity wall insulation that you need to go for. It will produce a 715% return. That’s 7.15 x your original investment (typically, about £701). With our increasing awareness of our carbon footprint, it shouldn’t come as much of a surprise that we value our home’s energy efficiency so highly. And, although some commentators are predicting the end for open plan living, the figures don’t agree. Knocking out walls to create more open plan living produces the second highest return on your investment, at 286.46%.
Strangely, fitting solar panels to your home produces the smallest return (0%). You would get your money back in terms of increased value. There’s no doubt, they will save you money on your energy bills, as well as making your home more attractive to buyers when compared to other, similar homes that don’t have them. The next smallest return is installing central heating (35.7%). That’s probably because we all now expect our houses to have central heating and for it to work. If not, it would, instead, reduce the value of a property.
Many of the biggest returns come from smaller works that cannot necessarily be expanded – ie. there’s a limit on the number of walls that will benefit from cavity insulation. So, if you want to maximise the value uplift rather than getting value for money, you may need to look at some larger scale projects, such as building an extension. It may only give you a mid-table return on your investment (133.61%) but it will give you the biggest value increase of all at £105,185.
One of the easiest wins is to create some offstreet parking. It is relatively inexpensive at £4,507 and won’t entail turning your house upside down while it's being done. Afterwards, it will then guarantee you a parking spot whenever you want one and should increase your home’s value by £19,546! If, on the other hand, you’re sick of staring at grubby old walls during lockdown, fret no more – because painting them will give you a 111.23% return on your investment.
If you live in any of our areas listed below, you are already likely to be a canny buyer, but please remember, these are average figures. They can only ever be used as a very rough guide and figures will vary considerably between one house and another.
#nottinghill
#bayswater
#kensington
#hollandpark
Rental Market News
The rental market continues to operate at two very different speeds. Homelet’s latest data shows the average rent rose by 0.3% between January and February and by 3.0% when compared to the same period last year. Ten out of the twelve regions saw significant rises during the last 12 months, with the East Midlands up by as much as 8.2%. If you take London out of the equation, the average rent rose by 6.2%. In the capital, annually, rents were down by 4.7%. However, Homelet points out that London’s rents are still 87.1% higher than the rest of the UK’s. And, as we reported last month, the capital’s rental market is showing signs of turning the corner, with rents beginning to rise rather than falling. In February they were up from £1,563 to £1,572.
The chancellor’s March budget, though, is likely to bring further changes. Supplies of rental property were already being affected by the Stamp Duty Holiday, as many landlords took advantage of the buoyant conditions to divest themselves of some of their properties. This process is now likely to continue until autumn when the new holiday period finally comes to an end. In London, it’s especially pronounced - 13% of stock currently listed for sale is ex-rental (source Zoopla). So, as we slowly return to our city centres, there may be supply shortfalls and rents could start rising significantly in more central areas. Rightmove has already seen a surge in searches for rental properties in London's zones 1 and 2, with traffic up by as much as 126% in some areas. However, with the threat of an increase in capital gains tax receding, at least for the time being, some of that motivation to sell has been reduced.
Andy Halstead, chief executive at HomeLet & Let Alliance, explains why he expects those rent rises to continue over the coming months:
“Those in the lettings sector warned of the Tenants Fees Act’s unintended consequences, along with the impact of the continued assault on landlords through policies that disincentivize property investment. We’ve seen the volume of UK landlords dip, whilst supply from tenants has continued to grow. Landlords have to charge more to cover their essential costs, including professional letting agents’ valued services. Ultimately this pushes increased rents back on to tenants, the same group who supposedly should have benefited from legislation like the Tenants Fees Act.”
In other news, the eviction ban for tenants has been extended yet again. This time until “at least 31 May”, according to Housing Secretary Robert Jenrick. It will then "taper off", although there are, as yet, no details about how that might work. And finally, a reminder to all Homesite’s landlords that electrical safety tests are now required for all existing tenanted properties (from April 1st) and Right to Rent checks on EU citizens will change from 30th June 2021, to take the new Points Based Immigration System into account.
Market Update April
Because most of the indices are based on sold prices, they tend to lag at least 3 months behind Rightmove’s, which is based on current asking prices. As a result, so far only Rightmove’s shows the true effect of the stamp duty holiday extension. Their latest data reveals demand is now surging ahead of supply in many areas and is creating considerable upward pressure on prices.
Spring is already one of the busiest periods for sales, but this year, with pent-up demand from lockdown, the stamp duty holiday extension and confidence building on the back of the ongoing lifting of restrictions, it is likely to be busier than ever. The number of enquiries on Rightmove’s website is hitting record levels. Even the month before (February) enquiries were 34% higher than they were in February 2020, which was in itself already a busy period. Approximately two-thirds of the stock on agents’ books has now been sold (62%) and asking prices have risen by 0.8% during March.
Fortunately, all those who had been reluctant to sell during the height of the pandemic are now slowly coming back to the market. In February, new listings were down 20% compared to the same time last year but were only down by 5% in March.
Tim Bannister, Rightmove’s Director of Property Data explains:
“So many sales have been agreed in recent months that we now face a serious shortage of homes available for sale. There are lots of reasons why many homeowners have hesitated to come to market during the first two months of the year, but these do now seem to be dissipating. A recovery in fresh supply gives more choice to prospective buyers, many of whom are also potential sellers, which in turn encourages more of them to come to market.”
Bannister dismisses any concerns the market might overheat, saying rising supply will soon have a moderating effect and that price rises will also be,
“Tempered by the tighter lending criteria imposed by the Bank of England upon lenders following the Mortgage Market Review in 2014."
"Restrictions on borrowers’ income multiples alongside stress testing of future affordability were specifically designed to guard against the destructive booms and busts of the past, limiting buyer borrowing power and preventing excessive price movements. The current annual rate of house price increase stands at a historically modest rate of 2.7%, but we stand by our forecast for the year of 4% which we published in December.”
There were some positive signs in London, too. The pandemic had seen an exodus from the capital and falling prices but in March asking prices were up in two-thirds of London’s boroughs (+0.5%). The top performers continue to be the outer areas but the situation is expected to reverse as lockdown is eased and we return to our usual places of work. Research by by independent property analysts, LonRes, shows instructions in Homesite's’ areas of operation were up by 72% and transaction volumes by 40% during the first three months of 2021. During the same period, the number of properties going under offer was the highest since 2014.
Marcus Dixon, head of research at LonRes, commented:
“It was the market below £1m that saw the most significant annual increase in sales – unsurprising given this is where the biggest saving, as a proportion of total buying costs, was to be made. But the top end of the market did well too. Despite travel restrictions still being in place, limiting overseas buyer demand and the stamp duty holiday being of less financial importance we saw transactions rise in this market as well. Transactions at the top end of the market were higher than both the 2020 and long run average in Q1.”
HOUSE PRICES AND STATISTICS
The fall in many of the monthly indices listed below are for completed sales and reflect the tail-off in activity as the original stamp duty holiday period approached its expected end in March.
Nationwide: Mar: Avge. price £232,134. Monthly change -0.2%. Annual change +5.7%
Halifax: Feb. Avge. price £251,697. Monthly change -0.1%. Annual change +5.2%
Land Registry: Jan: Avge. price £249,309. Monthly change -0.5%. Annual change +7.5%
Hometrack UK 20 City Index: Feb: Avge. price £264,200. Monthly change +0.2%. Annual change +3.6%
Rightmove: Mar: Avge. price £321,064. Monthly change +0.8%. Annual change +2.7% (asking prices on Rightmove)