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The UK has the cheapest agent fees in Europe

For most of us, the purchase of a property will be the biggest single expense which we ever have to cover, and the fees associated with this are often touted as expensive. However, a recent report has shown that fees in the UK are the lowest in Europe and therefore the old myth of expensive fees has been debunked, with other parts of Europe up to five times more expensive than the UK.

The average commission paid on the sale of a property in the United Kingdom is 1.2%, according to analysis from GetAgent, which is lower than all other European countries, with Denmark and Ireland next cheapest at 1.25% and 1.75% respectively. On the other end of the scale is Romania with an average fee of 6% – five times more than the UK.

“I think it’s fair to say that estate agents in the UK have a tough time of it when it comes to justifying their fees, with the predominant opinion being that they charge too much for the service provided,” said Colby Short, GetAgent’s chief executive officer.

“This really isn’t the case and as this research shows, the UK is actually home to the lowest estate agent fees in the EU and therefore you could argue, the best service as well. Of course, the price of property means there is a degree of relativity and the 6% commission you might pay in Romania will be a lot lower due to the lower cost of getting on the ladder,” he pointed out.

“So while you consider if three to four thousand pounds is a justifiable spend when selling a property for hundreds of thousands, remember you could be paying upward of ten thousand if you were to live in another area of Europe,” he added.

Fife Properties Group Office Owner, Jim Parker commented, “Choosing an Estate Agent to sell your house will probably be one of the most important things you will ever do. While fees are important what is equally important is the end result. Having an Estate Agent that can demonstrate the ability to achieve more than the asking price on a consistent basis could far outweigh trying to save a few hundred pounds in fees at the beginning.”

Fife Properties currently offer a FREE initial consultation service which not only provides an idea of the current value of your property but gives extremely useful advice on maximising the value when selling. To book click the link: https://www.fifeproperties.co.uk/property-valuation/

Property investors unfazed by Brexit

As we’re now finally closing in on 29th March, our scheduled departure date from the European Union, there is anticipation as to what Brexit will look like. In terms of property development, however, a recent study has shown that the majority of property investors are unfazed by the political upheaval and remain steadfast in their faith in the British property market.

A recent global survey carried out by SevenCapital, a leading property developer, has found that 85% of individuals who are currently investing in property around the world are investing in the UK’s property market, in spite of the Brexit furore whipped up by news headlines.

Andy Foote, director at SevenCapital, said: “These figures demonstrate that people generally recognise that there are bigger factors to consider over Brexit when it comes to the overall trends in the UK property market. Realistically, it’s the fear and the perception of Brexit that will have any effect, rather than the physical act of leaving the EU.”

“Ultimately, if the market were to take a dip after Brexit, seasoned investors will know that this would more likely be a catalyst for the inevitable swing back. The property market is a prime example of well-known cyclical patterns, growing through recovery and emerging stronger than previous peaks. In other words, if it takes a dip, as it did 10 years ago, it will recover and come back stronger.”

The survey of “High Net Worth Individuals” (HNWIs) – defined as earning more than £100,000 per year – has shown that property remains as popular as ever for global investors, with 59% investing in property, second only to stocks and shares. Out of those who responded, more than 30% of those from within the United Kingdom confirmed they were investing in UK property and, furthermore, almost a quarter actually cited Brexit as one of their reasons to invest.

With cities such as Birmingham performing impressively well post-Brexit vote, with property prices growing 16%, the investment possibilities remain strong. Moreover, the rental yields being posted by the likes of Birmingham, Manchester and Liverpool are amongst some of the highest around the country at between 5 – 10%.

Overall, the sensational headlines which Brexit has provided have been utilised well by the media as a means to engage people. However, when we look at the statistics it is evident that there are further far-reaching events which weigh more heavily on the property market, such as interest rates. With property investment remaining encouragingly high across the United Kingdom, first-time buyer activity at unprecedented levels and the pound being predicted by Goldman Sachs to be the highest-performing G-10 exchange rate this year, the property market is set for a strong and stable year ahead.

Housing supply and demand are both on the up

If you’re of the mindset that the property market is in the midst of a period of difficulty, then the latest figures from the National Association of Estate Agents (NAEA) will surely change your mind, with both the supply of housing and the demand for housing at increased levels proving the market’s current health.

The NAEA Propertymark’s latest figures have shown that the supply of available housing increased by 20% in December. The number of properties reached the highest level for December since 2014, with housing supply per branch increasing to 42 – an increase from 35 per branch in November. Simultaneously, the number of house hunters also increased by 8% in December, with overall demand up 13% year-on-year.

Mark Hayward, chief executive at NAEA Propertymark, said: “This month’s findings prove that despite the current political climate, people still want to move. There is movement in the market with demand from house hunters up 13% year-on-year, and the supply of available properties also rising. Although the number of sales agreed hit a 12-month low, this is something we always see in December, with Christmas festivities typically taking priority over any plans to buy or sell.

“While many are adopting a ‘wait and see’ strategy until there’s further clarity over what Brexit might mean for the market, there is choice for those who want to buy now, and there are people on the market looking for new homes.”

First-time buyer sales also showed an increase in December, with the number of properties sold to the group increasing to 24%. With first-time buyers integral to the health of the property market, rising statistics in terms of their buying potential is always a good indicator of the viability of the market.

As we move further into 2019, it is difficult to predict whether the health of the market will remain consistent in the face of political instability and the financial effects of this lack of consistency. On the other hand, there are other macroeconomic conditions which are favourable for the health of property across the country, such as historically low-interest rates and the relative ease to obtain mortgage credit. These conditions mean that more people than ever are in a position to take out a mortgage and purchase a property, with schemes also available to alleviate the trouble which some find in saving for a deposit, and this increased demand should shore up the market even after Brexit has (or indeed, hasn’t) taken place.

Fife Properties Group Office Owner, Jim Parker said, “It is always best to get a specialist to help get the best deal on financing. Often it far outweighs the fee for arranging the mortgage itself”

If you want to book a FREE initial consultation with our specialists please tap the link to contact any of our local offices or book online https://www.fifeproperties.co.uk/contact/

Buyers rush to beat Brexit: mortgage approvals increase

Research from chartered surveyor e.surv has shown that mortgage approvals reached a peak of 66,390 in December of last year, which amounts to a 7.8% annual increase. This seasonal rise has led to claims that there is a pre-Brexit rush to purchase property, and that the political uncertainty arising from the imminent break with Europe is actually fuelling current demand in the property market.

Commenting on the figures, Richard Pike, sales and marketing director for Phoebus Software, said:

“It is hard to talk about anything at the moment without mentioning the ‘Brexit’ word: it is all-consuming and there is little doubt that it continues to affect the housing market.

“The fact that house purchase approvals were up in December suggests that people are planning ahead and making their move before the March deadline. Interestingly the number of remortgage approvals took a dip compared to the same month in 2017, which bucks the trend throughout the rest of the year.”

“Nonetheless, I would expect it to be the remortgage sector that will be keeping the mortgage market going in the coming months, as we wait to see how our exit from the EU pans out.”

Throughout the year, types of mortgage being approved also reflected the influx of first-time buyers in the property market, with mortgage products offering loans at 95% of a property’s value increasing in popularity.

Data showed that over a quarter of mortgages approved in December were taken out by borrowers with a small deposit (less than 20%), and this was also the case in November. A key step-change in property has been the introduction of government schemes in order to alleviate the headache of saving for a deposit, and these statistics show that this is having some success in the marketplace.

Tony Sutton, managing director of mortgage brokerage group Specialist Financial Services, said lenders have become more competitive as they seek to protect their market share.

Mr Sutton said: “There is a wider choice of products available, serving a broader range of people with more sensible underwriting decisions.

“Lenders are trying to maintain market share and have increased the terms they are willing to offer.”

Such an increase in mortgage offerings has clearly made the process of gaining a mortgage easier than ever before – with some lenders even offering 100% mortgages on properties in an effort to maintain their place in the marketplace. With more options available offering more flexibility, it is no wonder that mortgage approvals have increased, which bodes well for the year ahead for property.

Fife Properties Group Office Owner, Jim Parker said, “It is a highly competitive market out there and to stay ahead of the game it is always best to get a specialist to help get the best deal. Often it far outweighs the fee for arranging the mortgage itself”

If you want to book a FREE initial consultation with out specialists please tap the link to contact any of our local offices or book online https://www.fifeproperties.co.uk/contact/

Revealed: how the property market has changed in the last five years

The ‘Housing Futures’ survey has been conducted annually by Strutt & Parker since 2013 to examine how the property market has evolved and then utilising this data to identify future trends which will shape the market. The latest version, ‘Housing Futures: New Horizons’, has shown that ‘connectivity seems to be the key for British home movers in 2018. We want to be connected in all areas of our lives…there is a growing requirement for connection, community and convenience.

Increased demand for lettings

An increase in the demand for lettings has had a significant impact upon the property market, with research showing that rental increased as a future tenure from 10% to 13% – reflecting its growing popularity. Growth in the private rented sector has seen a near 30% annual increase and encompassed within this sector is the “Build-to-Rent” market. Over the course of the past year, there has been a 45% increase in the delivery of completed “Build-to-Rent” homes with the focus on the type of property now shifting from blocks of flats to family housing, thereby supporting the lettings market in the long-term.

The pace of life dictating property requirements

As the pace of life quickens and we become more accustomed to instantaneous connections, our property requirements are reflecting this desire for connectivity – both virtually to networks and physically to one another. “Good broadband” is now regarded as a necessity for the majority of buyers – up to 57% – and twinned with this desire for “good broadband” is the desire to be closer to family and friends – up to 48%. There should be no surprise, therefore, that city living has increased in popularity as cities offer the greater levels of connectivity and accessibility which is now sought-after by buyers.

Fiscal concerns shaping the property market

As the Housing Futures report states, “over the past five years, the UK has seen turmoil in the political arena as well as in the regulation and taxation of residential property”. This “turmoil” can be seen in the changing shape of the property market; for example, demand for detached houses has significantly dropped over the last 5 years from 83% to 49%, whilst semi-detached homes have become the most popular. This shift away from larger homes indicates a hesitancy amongst buyers to stretch themselves when it comes to their finances, perhaps also explaining the growth in the lettings market as potential buyers become more financially prudent.

Family Ties

Also identified in their housing report ‘26 different property tribes’ – groups of people who are the most prevalent in the property market. One of the ‘tribes’ which will exert the most influence on the property market over the coming years is aptly named ‘The Waltons’ and consists of multi-generational households, much like those seen in years gone by. This multi-generational family home will become more prevalent due to the increasing price of property and the resulting necessity for multiple family members to combine their wealth in order to purchase better homes than if they were to purchase individually, or simply because family members cannot afford to live by themselves. Further to this family aspect in the future purchase of properties, providing financial support for relatives has become one of the key reasons to move home – now up to 22% of those surveyed cite this as a motivator to move home.

As political and policy changes take place throughout the United Kingdom, the property market is flexing to respond to these types of change – this is reflected in the rise of the popularity of the semi-detached home and the continuing growth of the lettings market. Buyers are more aware of their fiscal concerns and more demanding in terms of their requirement to be well-connected to friends, family and wireless networks. With an ageing population continuing to live longer, the power of the “grey pound” will exert itself upon the property market and, combined with younger generations who have a voracious appetite for property both in terms of letting and purchasing, one thing is for certain – the property market remains extremely financially solvent.

Fife Properties Managing Director, Jim Parker commented, “Connectivity is definitely one of the main drivers today when purchasing a house. While broadband speeds are important proximity to relatives/friends are also an essential part. Buyers want to know about lifestyle which is why our local property experts go out of their way to find out about the surrounding area, so they are informed.”

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