Budgets are always interesting for mortgage-holders. The October 2021 budget probably contained very few real surprises (if any). Some of its forecasts, and the decisions based on them, could, however, significantly impact the finances of mortgage-holders. Here’s a quick guide to what you need to know. The inflation forecast For mortgage-holders, probably the single most important announcement of the budget was that next year inflation is expected to average 4%. This is literally double the government’s official target. If the government is prepared to state that inflation will average 4% over the coming year it presumably means that it has given the Bank of England its blessing, if not its instruction, to hold off raising interest rates to try to bring down inflation. This is certainly interesting news for mortgage holders. That said, it’s a matter of opinion whether or not it’s good news. On the one hand, keeping interest rates low will ease the pressure on debtors in general and variable-rate mortgage-holders in particular. On the other hand, this could be (more than) counterbalanced by the increased cost of living. Personal income and taxes There was no update on the issue of personal taxation i.e. Income Tax and National Insurance/the NI surcharge. You could argue that “no news is good news” in the sense that the government did not increase these any further. It did, however, increase the National Living Wage by 6.6%. This puts the standard adult rate at £9.50 per hour. Wages for younger people and apprentices are still lower but have also been increased. According to the government, in real terms, average wages have increased by 3.4% since February 2020. The chancellor held firm on the withdrawal of the temporary uplift to Universal Credit. He did, however, commit to cutting the taper rate from 63% to 55% by no later than 1 December 2021. General taxation Some mortgage-holders may be very interested to learn that the government is imposing a 4% levy on property developers with profits over £25m. This is to finance a £5bn fund to remove unsafe cladding. At present, however, the details of this are very much a case of “watch this space”. Likewise, it’s unclear how exactly the government will use the £300m it has allocated to "Start for Life" parenting programmes. These are intended to support families through the “First 1001 Days” i.e. from pregnancy to age two. On the other hand, the government has also made the more straightforward pledge of allocating an additional £170m to childcare albeit by 2024-25. As is customary, duty on tobacco products was increased. Duties on alcohol were reformulated. In short, higher-strength products saw their duty increased and lower-strength products saw it decreased. The government also eliminated the quirk of sparkling wines and still wines being taxed differently. Somewhat surprisingly, fuel duty was held steady. Even though fuel duty has remained frozen for the last decade, it was seen as a candidate for a raise. If nothing else, the government will need to push people towards electric vehicles if it is to meet its net-zero target. It’s not clear why the government chose to “stand pat” for the 11th consecutive year. Possibly it felt that current fuel prices would make an increase in fuel duty seem rather tone-deaf. Government spending For mortgage-holders, the two key areas of government spending were transport and the Levelling Up Fund.  For transport, the government has pledged to spend £7bn across England, particularly Greater Manchester, the West Midlands and South Yorkshire.  It has also pledged £1.7bn for its Levelling Up Fund and will back further infrastructure projects across the UK.  These projects could potentially increase house prices and hence make it easier to remortgage. For more information or help with your mortgage, please get in touch.

A mortgage is a huge commitment.  This means it’s vital to get both the right product and the right lender.  Giving some thought to what you want can make the selection process a lot easier.  With that in mind, here are some points to consider when considering specialist lending. What type of mortgage do you want? If you’re buying a place to live, you’ll need a residential mortgage. If you’re buying a property to let out to residential tenants, you’ll need a buy-to-let mortgage. If you’re buying a property to let out on a short-term basis, then you’ll need a commercial mortgage. If you’re wanting to build your own property, then you need a self-build mortgage. If you’re living, or planning to live, outside the UK, then you’ll need a mortgage that is suitable for ex-pats. Similarly, if you’re planning, or even just considering, any changes to your life, then you need to think about how you’ll accommodate that. These don’t even have to be long-term changes to be significant. For example, say you are buying a property with a view to starting a family. Until the children arrive, however, you have a couple of spare rooms. If you’re thinking of earning some extra cash by letting these out, you need to make sure you choose a mortgage that allows this. What mortgage format do you want? The two basic mortgage formats are interest-only and repayment. Repayment mortgages can be further subdivided into various options. For example, you can have standard repayment mortgages and offset mortgages. With standard repayment mortgages, you simply pay back the lender each month according to a predefined formula. With offset mortgages, you keep your savings with your mortgage lender. The interest you are due on your savings is set against what you owe on your mortgage. You also have the choice of fixed-rate and variable-rate mortgages. In either case, you can expect the rate to be offered for a certain period e.g. between two and five years. After this, you would either remortgage or go onto the lender’s standard variable rate. What mortgage features do you want? Are there any particular features you’d like to see in your mortgage? For example, would you like the ability to make flexible repayments or to take payment holidays? How attractive a customer are you? All the questions so far have been about figuring out what you want from a lender. Depending on your answers, you may already have discovered that specialist lending is really the only route for you. In simple terms, the less demand there is for a product, the less reason there is for lenders to offer it. This means that it effectively becomes a specialist product. If, however, you’re looking at a product that is offered in the mainstream, your next step would be to think realistically about how attractive you would be to mainstream lenders. In particular, consider: Your residency status Your age Your employment status Your credit history Your deposit Basically, look at the situation from a lender’s perspective. They want to get their repayments in full and on time over the duration of the loan. How obvious is it that you can make that happen for them? The more obvious it is, the more likely it is that you’ll be able to find a suitable deal in the mainstream if you want it. Making your final choice Assuming you have a choice between mainstream lenders and specialist lenders, you should make it with care. First of all, resist any temptation to assume that the mainstream lenders will offer the most economical deals just because they’re bigger. They may do but it’s strongly advisable to check. Secondly, while price is important, there may be other factors you want to consider, like customer service. You may be prepared to pay a bit extra for the reassurance of dealing with a lender who sees you as an individual rather than a row of figures on a statement. The FCA does not regulate commercial mortgages and we act as introducers for it.

If you’re thinking of developing your home, it’s important to make sure that you do so on a solid legal basis. Laws can and do change over time. They can also vary according to your local area and the type of property you have. With that said, there are some guiding principles that can be applied to any proposed development. Research what laws apply to you Planning permission relates to what you are allowed to do on your property. Whether or not you need it will depend on the nature of your development. Building regulations relate to how you implement the development. They will apply regardless of whether or not you need planning permission. Your property may also be subject to legal agreements with your neighbours. For example, you may have a party wall agreement. If so, you will either need to make sure that your development sticks within this agreement or negotiate a new agreement. Assume you need planning permission It’s generally best to work on the assumption that you’re going to need planning permission unless it is 100% crystal clear that you don’t. If you are in any doubt, then the best approach is to request planning permission. This does run the risk of refusal. It does, however, eliminate the risk of spending money on a project only to have to spend more money dismantling it. For completeness, you may be able to apply for retrospective planning permission. This could be a solution if you believe that your work is permitted development but your local authority thinks otherwise. Effectively, however, it is a gamble and could be an expensive one. If your application is refused then you would have to take down the structure. Understand why planning permission is refused You want to avoid giving planning officers a clear reason to turn down your application.  This means you need to think about any objections they may have and preemptively address them.  For example, do your plans cause any of the following? Loss of natural light, views or privacy to other properties Increased noise or smells Increased traffic (pedestrian or vehicular) Overcrowding and/or excess demands on local infrastructure Damage to the local environment/neighbourhood character Remember that planning officials need to think about what could be done with the structure, not just about what you say you want to do with it. Your plans might change or you might sell the property to someone else who uses the structure differently. Ask your neighbours for support There are lots of good reasons for staying on good terms with your neighbours. One of them is that it can help prevent planning applications from being derailed by objections. Even if the objection is, ultimately, not sustained, it can still slow down the process. It can therefore be advisable to consult with your neighbours at an early stage in the process. Ideally, you’ll incorporate their feedback into your plans so you come up with a design that suits everybody. At the very least, you should try to minimise issues to which your neighbours might object and have an explanation for why you need to keep any points of contention. Get professional help If you want to maximise your chances of speeding through the application process for planning permission on the first attempt, then it can be very useful to get professional help. Working with someone who regularly deals with planning officials can help to ensure that your design ticks the necessary boxes and is presented to the right people in the right way. This can work out much quicker, more convenient and more affordable than having to make additional applications until you finally (hopefully) get one accepted.

A mortgage could well be the biggest single debt you take out in your life. It’s therefore advisable to be strategic in everything regarding it. With that in mind, here are six mortgage mistakes you should definitely avoid. Not keeping a watch on your credit records Your credit records basically give you an insight into how lenders are likely to perceive you. Even if you think it’s in good shape, you should still keep an eye on it. Mistakes can happen and if they happen to you, you want to give yourself time to get them sorted before you need to reference your credit score. Sadly, fraud can also happen. Seeing an unexpected entry on your credit score may be a sign that you’ve been the victim of identity theft. You should definitely investigate this quickly. Not keeping your paperwork in order It’s generally advisable to keep your financial and legal records in good order. This can make your life much easier. What’s more, if anything does happen to you, it can make life a lot easier for other people. Something happening to you doesn’t have to mean your death. It could just mean illness or injury putting you out of action for a while. When you do come to buy a home, having your paperwork in order can allow you to speed through the application process. If you’re also selling a home, then having your property documentation in good order can help to speed up the conveyancing process. Not remortgaging at the end of your mortgage term You may plan to have a mortgage for 15-25 years. You don’t, however, need to have the same mortgage for 15-25 years. If you take out a mortgage with a fixed-term deal, then you should be looking at alternatives for when that deal ends. You don’t necessarily have to take those alternatives. You do, however, need to know what they are to make an informed decision. That holds true even if your finances have been hit by the pandemic. You may think that, currently, you wouldn’t be accepted for a new mortgage deal. In fact, you might be right. You’ll only know for sure, however, if you check and check thoroughly. Consider enlisting the help of a mortgage broker. Remember, even if you genuinely can’t remortgage now, you can at least get an idea of what’s out there and what you need to do to qualify for it. That will give you something to aim for. Not looking at niche lenders The big names do not necessarily offer the best deals. They may do but, again, you’ll only know for sure if you check. Tracking down niche lenders by yourself can be a bit of a struggle. This is another argument in favour of using a mortgage broker. Not factoring in fees There are two sets of fees you need to consider when looking at mortgages. The first is set-up fees and the second is exit fees. Set-up fees are guaranteed to be charged, you, therefore, need to factor them into your calculations when working out the overall cost of a mortgage. This is the only fair way to compare different mortgage deals. If you’re planning on adding the fees to the loan, then you also need to factor in the cost of the interest. Exit fees will only be charged if you exit the mortgage early. It is, however, still important to know what they are. You may not plan to exit the mortgage early but your plans may change. Not calculating your deposit accurately When calculating how much deposit you can really afford, remember to think about all the expenses of moving home.  Then add a bit extra for unforeseen expenses.  Then add a bit extra on top in case of unrelated emergencies. For mortgage advice, please get in touch

Sometimes the bank of mum and dad isn’t open or isn’t able to lend enough to help young people buy a home.  Sometimes grandparents just have more resources to help.  Those resources might not be financial.  The right advice and guidance can also be valuable.  Here are some tips to help. Keep your own finances in good order Modern retirement can last decades and you need to keep this in mind when making financial decisions. No matter how much you want to help your grandchildren financially, you should only provide them with money if you’re sure you can afford it. This goes for both loans and gifts. What’s more, keeping your own finances in good order sets a good example to your grandchildren. If they’re just starting out in adult life, they will need to build their credit records. A large part of this is demonstrating financial responsibility. Consider giving them their inheritance early If you are looking to minimise your estate's liability for inheritance tax, you might want to consider disposing of assets now.  You could either monetise them and pass on the cash or pass on the asset itself. Remember, however, to take Capital Gains Tax into consideration. This can be charged even if you pass on the item as a gift. Essentially, HMRC can look at what the person could have been expected to have paid you had they bought the item and calculate CGT on that basis. You may therefore want to take financial advice and look for a strategy that will minimise both your CGT liability and your eventual IHT liability.  For example, you might wish to dispose of assets relatively slowly and give your grandchildren their inheritance a little at a time.  They could potentially put the money into a Lifetime ISA to benefit from a government bonus. Consider gifting them cash savings While emphasising the fact that you should only help them buy a home if you’re sure you can afford it, this can be a very useful way to help your grandchildren onto the property ladder.  One point to remember, however, is that some lenders do have rules around “gifted deposits”.  You and your grandchildren would therefore need to read up on these to make sure the gift didn’t backfire. Consider giving them a loan Loans to family members can be tricky to navigate. At the end of the day, you have to ask yourself what you can/will do if they can’t/won’t pay. If the realistic answer is nothing, then it might be better either to give them a gift or not to give them anything. If you are going to give them a loan then it’s strongly recommended to put everything in writing. Consider being a guarantor on their mortgage This is potentially a huge commitment and hence should be taken very seriously. It could, however, be a useful option in some cases. Possibly the single biggest key to success in making these arrangements work is to have an exit strategy laid out in advance. For example, you might agree to guarantee their mortgage for five years. After this, your grandchild would need to remortgage in their own name or sell their home. You might want to consider negotiating an extension for this in particular circumstances but this should ideally be by mutual agreement. For example, if your grandchild was planning on moving soon, you might stay on the mortgage until they sell the property in their own time. One important factor to consider is the possibility that your grandchild will want to have a partner move in with them.  Under certain circumstances, your grandchild’s partner could develop a claim on their property.  It would therefore be advisable to have some pre-agreed rules in place for this situation. For more information or for mortgage advice - please get in touch The FCA does not regulate some forms of Tax planning and we act as introducers for it.

Homes are expensive purchases on their own. Once you fill them up with your possessions, they can become even more expensive. It’s therefore worth taking the time to understand home insurance properly. The basics of home insurance Home insurance is generally divided into two broad categories. The first is buildings insurance and the second is contents insurance. There are, however, a number of add ons and complementary policies you may need or just want. Here is a quick look at the main types of cover and what they mean in practice. Buildings insurance The key point to remember about buildings insurance is that it’s to replace the building rather than the land. This means that the insurance value of your property may be substantially less than what you paid for it. There is nothing to be gained by overinsuring, so make sure you avoid overpaying. Contents insurance Broadly speaking, contents insurance covers the contents of your property. There is, however, a lot of nuance in this. For example, standard home contents policies may exclude, or at least limit, certain types of property. They may only cover items in the main home, rather than outbuildings. They may also exclude accidental damage. Some policies may extend their cover for a higher premium. Others may require you to buy separate policies. You may find that you end up doing a combination of both. Cover for valuable property It’s really important to read the fine print of your contents policy very carefully. There may well be restrictions on cover for certain types of property such as cash, jewellery and electronics. Other exclusions may also apply. Even if the insurer does offer cover for them, they may require you to declare the items specifically and potentially increase your premium for them. If this is the case, then it may be worth investigating the pros and cons of including such items on your general insurance versus insuring them individually. In particular look at the breadth of cover involved as well as the price. For example, a standard home contents insurer might be prepared to insure your bicycle against theft from your home. A specialist cycle insurer, by contrast, might cover you for theft in other locations. They might also offer valuable extras such as protection in the event that a third-party makes a claim against you. Cover for outbuildings You may see your outbuildings as part of your home, but your insurer may see the matter differently. This means that it’s strongly recommended to read the terms of your policy carefully and, if necessary, clarify them in writing with your insurer. You may find that covering outbuildings requires you to pay for add-on cover and/or comply with security requirements. In fact, even if your insurer does not explicitly require you to have any security features on your outbuildings, it may be to your advantage to invest in them. This will help to reduce the chances of having a claim denied due to you having failed to take sufficient care of your property. They should also help to reduce the chances of you falling a victim to theft in the first place. Cover for accidental damage Insurance can protect you either against what happens to you or against the consequences of your own actions. In the context of home insurance, the latter is generally known as “accidental damage cover”. It may or may not be included as standard with your regular buildings and/or contents cover. If it doesn’t, then it can be well worth purchasing as an add-on or complementary policy.  That way you’ll be covered for any damage you do to your home and/or its contents.  Accidental damage cover isn’t just for DIYers (and people with young children).  It can be extremely useful for just about anyone. For advice, please get in touch

According to figures from Rightmove, the second half of 2020 saw the Cotswolds surge in popularity amongst people looking online for property, so escaping to the country. Admittedly, there is a long way between search and completion. There is also a big difference between six months and a long-term trend. The figures do, however, give food for thought. Can the UK really give up city life? The question of whether or not the UK can really give up city life is, arguably, very much connected with the question of whether or not remote-/hybrid work is here to stay. With the caveat that remote-/hybrid working is not yet suitable for every job or every employer, the answer to that question appears to be yes. According to figures from LinkedIn, remote job listings are on the rise. Furthermore, it’s entirely possible for jobs to go remote-/hybrid without being advertised. It would simply require an agreement between the employer and the employee. The more work becomes an activity rather than a location, the less need there is for people to be concentrated in cities and commuter belts. Of course, there is a difference between need and want. Everybody has their own idea of quality of life. Post-COVID19, however, people could be reassessing their priorities. City life versus country life Cities, literally by definition, are places with high population density. This means that space is at a premium and this is reflected in property prices. In cities, those on the lowest incomes may only be able to afford a very small living space. This might be a room in an HMO, a bedsit, a shared flat or a studio. Tiny living spaces may not be an issue when you have all the facilities of a city open to you. COVID19, however, plainly demonstrated what can happen when those facilities are curtailed. Technically, once COVID19 is fully brought under control, this should not be an issue. In practice, the situation is a bit more complicated. Firstly, it’s simply impossible to guarantee that the COVID19 situation will be a one-off. Secondly, even if there were, there’s still the fact that living small has its inconveniences as well as its benefits. For example, if your home is too small for a washing machine, then you need to use a laundrette. This costs extra money and can be a drain on your time. How much of an issue this is, does, of course, depend on the individual. Only time will tell if the general attractions of cities remain strong enough to keep people there even when they don’t need to be. Similarly, only time will tell if the lure of more space will be enough to compensate people for the loss of easy access to city attractions. What does this mean for the property market? The answer to this question probably depends on your perspective. If you’re a first-time buyer, it probably means very little. You would simply go ahead and choose your first home based on your own criteria. If you’re a homeowner, then you could find the value of your home changing based on the overall perception of your local area. If that change is downwards, it could reduce the level of equity you have in your home. Again, how much impact this would have would probably depend on your ability to wait and let general inflation do its work. If you’re an investor, then the next few years could be a challenge to navigate. One option would be to sit out the residential property market. You could look at student property, retirement property and/or short-let property as an alternative. Another option might be to look at areas just outside regular commuter belts, e.g. at the far end of train lines. These could appeal both to commuters and remote-/hybrid workers.

If your home is worth more than your existing mortgage then you have “equity” in it. That equity has a monetary value. It, therefore, makes sense to leverage it as much as you can. Here are some points to consider. Stay open to remortgaging Remortgaging can be very useful even if you currently have no interest in releasing equity from your home.  There are three main reasons for this.  Firstly, the best deal available to you when you (last) took out a mortgage may not be the best deal available to you anymore. In fact, your great deal may only have been a great deal due to an introductory offer. If this has now expired, you should certainly investigate remortgaging as soon as possible. Secondly, your financial situation may have improved opening up more deals to you. For example, your credit rating may have increased thanks to your track record of punctual mortgage repayments. Thirdly, you may be able to apply for a mortgage with a lower loan-to-vehicle ratio. Even if your home’s value has remained flat, your repayments will have reduced the amount you owe. If your home’s value has increased, the differential will be even greater. You may be able to leverage this to reduce your repayments and save even more money. Remortgaging versus getting a personal loan For clarity, in the UK, if you own a home, any debt you take out can be secured against it. The only question is how the lender goes about the process. With some debts, like mortgages, the lender and borrower mutually agree that the debt will be secured against the property. With other debts, the lender has to apply for a charging order to secure the debt against an asset. This is not an argument against taking on further debt if you own a home. It is, however, intended to highlight the fact that as a homeowner, failure to repay any debt could put your home at risk. It is therefore vital that you do thorough research and take all decisions mindfully. The maths of remortgaging When comparing the costs and benefits of remortgaging versus getting a personal loan, you need to analyse both the setup costs and the ongoing costs. Remortgaging is, literally, taking on a new mortgage. This means you should expect it to involve all the usual set-up costs of taking out a mortgage such as having your home valued. The ongoing costs will be determined by the amount borrowed, the interest rate and the duration of the loan. This is where you need to be very careful to think about what you are likely to do rather than what you theoretically could do. For example, if you compare a mortgage with a 20-year term to a personal loan with a 5-year term, you could find that the mortgage works out more expensive. Even though its headline interest rate could be lower, the longer term means that you end up paying more - if you keep the mortgage for the full term. If, however, the 20-year mortgage allows you to make overpayments without penalty and you are in a position to make those overpayments, then it could work out more affordable. Effectively, you would treat a part of your 20-year mortgage as a low-interest, five-year personal loan. Of course, this approach would only work if you actually did make those overpayments. Finding the right deal Navigating your way through financial products can be complicated at the best of times.  Adding in the need to make sure you do potentially complex sums accurately can make the process even more complicated.  If that’s putting you off from making a decision that could have a significant financial benefit, then get help from a professional such as a mortgage/loan broker. If you need advice please do not hesitate to contact me. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage

The buying frenzy caused by the SDLT holiday looks likely to come to an end soon.  In fact, it may start fading relatively soon given the time needed for completion.  This may actually be good news for buyers, especially first-time buyers and the self-employed.  You will, however, need to approach the mortgage approval process in the right way.  Here are some tips. Prepare as much as possible If you haven’t yet filed your tax returns for 2020-2021 see if you can push the process forward. That will give a prospective lender the most up-to-date information on your financial standing. If you need to renew your ID then definitely get this ball rolling as quickly as possible. Make sure that you have a copy of your current document and all the details of the application. That way if anything does go wrong (e.g. it’s lost/delayed), you’ll have the information needed to chase it up. As always, do everything you can to make your credit score look good. At a minimum, check it for errors. This is particularly important now because the challenges of working under COVID19 may have made it more likely that companies would make mistakes. It certainly makes it more likely that records would not have been updated in a timely manner. If you can do anything to raise your credit score then do so if you possibly can. If you’re thinking that a few extra points won’t make any difference then you may be right. Then again, however, you may not. Sometimes decisions come right down to the wire and that little extra can make a difference. On similar logic, see if there’s anything you can do to raise your deposit. Be aware, however, that lenders often have rules around gifted deposits. Consider focusing on properties in need of work Making predictions is always dangerous. That said, it’s also dangerous to ignore general trends. Since July 2020, average house prices have been on a clear and steep upward trend. While coincidence does not equal causality, given the timing, it’s hard to see how this could be unconnected with the SDLT holiday. This, therefore, raises the question of what will happen to house prices once the SDLT holiday ends. Further growth is certainly not impossible although the rate of growth may be slower. Flatlining is also possible. The last possibility, however, is that house prices decline. This could potentially leave more recent buyers in negative equity, albeit potentially only temporarily. Big deposits are reassuring for lenders but they can be challenging for buyers to put together. It may therefore be more strategic to look for properties in need of some work. Then you can get a mortgage on the purchase price and update the property as funds allow. If you go down this route, however, make sure that you are very realistic about what is involved. Use a mortgage broker One of the keys to understanding the mortgage market is to understand that each lender has its own way of operating. For example, the Mortgage Market Review obligates lenders to check affordability. It is, however, down to each lender to work out how they are going to do that. In the real world, minor details can make a major difference. For example, slight differences in the way your income is assessed could mean that a borderline candidate is a no to one lender but a yes to another. Right now, lenders also have to navigate their way through assessing the impact of COVID19. This is another ticklish situation for them. They don’t want to turn away viable candidates. At the same time, however, they don’t want to get on the wrong side of the regulators. Mortgage brokers may be able to help you to present yourself in the best way to get a yes. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage

If you’re selling a home, it makes sense to highlight its most attractive features. To do this, you need to understand what today’s buyers want. With that in mind, here are some property selling points you should consider. Location You’re selling a place to live so be sure to let potential buyers know why they would enjoy living in your area. Be as specific as you can. For example, instead of just saying “there’s a great range of gastropubs nearby”, drop in a few names and any key points like awards. If you’re selling a family home, then be sure to highlight child-friendly facilities. Good schools are an obvious point to mention but there are others. Think about pre-school children and post-school/school-holiday activities. It might also be worth mentioning pet-friendly facilities. In fact, these can be of interest to buyers even without children. Have a look on social media and see if you can find any accounts relevant to your area. Instagram can be particularly good here since it’s based on pictures and shorter videos. This can be an easy way of showcasing your locality to buyers without you having to go out and take a lot of pictures/videos. Private space The amount of private space you have will be defined by your property deeds. The attractiveness of the private space you have will be determined by various factors. One of these is presentation and that is very much within your control. If you have any outdoor space at all, make the most of it. Even a tiny patio or balcony can be a selling point. Parking space can be especially valuable. If you can’t get any beside your home, you might want to try and see if you can buy any near your home. Having a short walk isn’t as convenient as parking at your door but it can be a lot more convenient than having to fight for a parking space. You’re definitely going to have indoor space so make the most of that. Read up on interior design tricks for making spaces look bigger. See which ones can be applied to your space. Remember that even well-known tricks can still be very effective. For example, it’s probably fairly common knowledge that mirrors amplify light and space, but the trick still works. Practicality Cover off anything which contributes to keeping your property windproof, waterproof and warm. That would include, for example, insulation, central heating and double-glazing. Again, be as specific as you can. For example, if your boiler is relatively new make sure to mention the fact. Also, cover off any features which enhance physical security. For example, what is the state of your windows and doors? Do you have any smart security devices you’re leaving behind? Is the approach to your home well-lit? If so, do you control the lighting or is it street lighting? Last but definitely not least, think about connectivity. Does your house have plenty of electrical sockets or even USB sockets? Do you have wired internet as well as wireless internet? What’s the speed like? If it’s not great, is it due to be improved? How’s your mobile signal? The issue of upgrades Keep in mind that there is a difference between making an upgrade to your home for you to enjoy and making an upgrade to your home to increase its sales value. Remember that advice on what buyers look for in a home can only ever be based on statistical trends. The statistics may indicate that buyers, in general, value a particular feature but that doesn’t mean that any particular buyer will. Even if they like the idea in principle, they may not like how you have implemented it. Even if they do, they might not like it enough to pay more for the property. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage

The Stamp Duty holiday has arguably been the housing-market equivalent of the January sales. It got people out and spending at a time when they might otherwise have stayed at home and saved. Like the January sales, however, it must come to an end (barring any major surprises). So what will happen to the housing market then? The case for more growth The Stamp Duty holiday benefitted onward-movers (and investors). It didn’t really benefit first-time buyers. In fact, it arguably disadvantaged them. First-time buyers already benefited from a Stamp Duty discount, albeit a capped one. The Stamp Duty holiday put them (back) on an even playing field with people who were likely to be on a stronger financial footing than them. For example, onward-movers would have had the opportunity to build up equity in their home. Investors, meanwhile, by definition, are people who have money they can set aside for the purpose of making more money. It is, therefore, possible that a lot of the house-price growth seen over the last year or so has actually been an indirect result of the Stamp Duty holiday. In other words, the Stamp Duty holiday may have encouraged people to move on sooner rather than later. It might also have encouraged them to look at larger properties. For example, some people might have wanted more space for children (indoors and outdoors). Some may have wanted working-from-home space. Some may even have wanted both. Further growth may, therefore, come from first-time buyers returning to the market once their Stamp Duty advantage returns. If it does, it will be interesting to see what type of properties they buy and where. The case for flatlining There are two good reasons for thinking that house prices might flatline. The first is that there has been so much activity in the housing market since last July. It’s therefore entirely reasonable to wonder how much energy there can be left in the housing market. Quite simply, it may have run out of steam naturally and hence may need some time to cool off. The second is that the housing market can only grow if people can afford to pay higher prices for homes. This depends on their income and, one way or another, this generally depends on the state of the economy. Even people on guaranteed fixed incomes (e.g. pensioners) are impacted by the state of the economy as it influences prices and hence their disposable income. Technically, the UK economy is growing. Realistically, however, the growth could be more accurately described as a reboot. In other words, the UK economy has spent over a year in various stages of lockdown. It’s now getting back to where it was rather than forging ahead. This begs the question of how much further growth, if any, the housing market can sustain before it becomes unaffordable. Help-to-Buy schemes may be a consideration here. That said, these ultimately depend on the government’s ability to finance them. This ultimately depends on the state of the economy (and hence tax revenues). The case for house-price falls What goes up doesn’t necessarily have to come down. If it’s to stay up, however, it needs something to support it. In the case of the housing market that is often mortgage payments. If homeowners cannot afford their mortgage payments, then, one way or another, their home will be sold. If buyers cannot afford mortgage payments then they cannot buy. This means that either homes go unsold or sellers lower their prices until buyers can afford them. In the real world, it may mean a combination of both. There is a difference between house-price falls and a market crash.  House-price falls can be a case of a slow slide to a gentle landing and then a climb back up again.  They do not have to be sudden drops.  Either way, however, house prices can and do fall if they rise to unsustainable levels. Contact us today for more information or to get mortgage advice. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage

According to the Bank of England, in March 2021, gross mortgage borrowing hit £35.6bn. Repayments, however, totalled just £23.8. This is the highest net difference since records began in 1993. What’s more, it's happening with a global pandemic still in progress. This raises the question of what is behind these figures and what they mean for the long-term health of the housing market. The Stamp Duty holiday Right now, it’s almost impossible to talk about the UK housing market without talking about the impact of the Stamp Duty holiday. Rather like “Eat Out To Help Out”, it’s proving to be an idea that sounded good at the time but, with hindsight, is becoming increasingly controversial. The manner in which it was extended was, arguably, even more questionable. On the one hand, you could argue that stimulating the housing market stimulates the economy in all sorts of ways. The obvious way is that it creates employment for people directly involved in the real-estate sector. The less obvious way is that people who move homes tend to spend money on their new properties, for example by furnishing and decorating them. On the other hand, you could argue that this is short-term gain for long-term pain. Coincidence does not equal causality. It is, however, very hard to see the recent surge in UK house prices as being totally unconnected to the Stamp Duty holiday. It may not be the only factor but it certainly appears to be a significant one. How significant it is will probably become clear once it finally ends. The Help-to-Buy Mortgage-Guarantee scheme v2 Having closed the Help-to-Buy Equity Loan scheme to onward movers, the government proceeded to relaunch the Help-to-Buy Mortgage-Guarantee scheme. This is available both to onward movers and first-time buyers. As with many of the government’s stimulus measures, this move generated controversy. On the one hand, it is a means to address the affordability issues which can make it so difficult for people to get on or up the housing ladder. On the other hand, it’s addressing the symptom rather than the cause. In other words, it’s not addressing the chronic supply-side issues which have plagued the UK housing market for so many years. What’s more, introducing government-backed loans at this time is particularly risky both to buyers and to the taxpayer. It’s looking increasingly likely that remote- or at least hybrid-working is going to be very much a part of the post-pandemic “new normal”. Over the long-term, that could be a huge benefit to everyone. In particular, it could spread out the benefits of the UK’s economic strengths. Over the short term, however, it could lead to house prices stagnating or even dropping in what were once popular housing markets. This could leave new buyers dangerously exposed - and the tax-payer with them. The race for space Small-space living may have its charms but it also has its limitations. In particular, it can leave you very dependent on having regular access to external facilities. The lockdowns showed just how vulnerable that could make you if anything went wrong. This in itself might not have been enough to get people to make a long-term investment in more space. After all, everyone knew that the pandemic would have to end eventually. Signs that employers are becoming more open to remote-/hybrid-working, however, are changing the game in the housing market. Before the pandemic, most workers had to think about the practicalities of getting to an on-site work-space every day. Now, increasing numbers of people have the option to work from home regularly. This means that they can invest in a larger property and live with a longer commute when they do need to head into their official workspace. Unlike the other two factors, this influence looks like it’s here to stay. It is, however, likely to have the most impact over the immediate future as people adjust. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage Please contact us for any more information.