NAEA Propertymark has released its Housing Report August 2020, which states that 13% of properties sold for more than the original asking price during that month. This is the highest recorded since November 2015.
However, housing demand has fallen marginally from July.
What properties sold for
In August, one in eight (13%) properties sold for more than the original asking price
This is a rise from 8% in July, and 10% in June
The majority (53%) of properties sold for less than the original asking price in August
Sales agreed
The average number of sales agreed per estate agent branch stood at 12 in August, a slight decrease from 13 in July
This is the highest figure recorded for the month of August since 2007, when the number of sales per estate agent branch also stood at 12
Year-on-year, the number of sales per branch has increased by 33%, rising from nine in August 2019
Demand for housing
In August, the number of house hunters registered per estate agent branch fell from 428 in July to 396
Supply of available properties
The number of properties available per member branch stood at 40 in August, falling marginally from 43 in July
Sales to first-time buyers
The number of sales made to first-time buyers stood at 23% in August, a fall from 25% in July
Mark Hayward, Chief Executive, NAEA Propertymark comments: “It’s interesting to see that one in eight properties sold for more than asking in August this year.
“Last month, we witnessed a boom in the number of prospective buyers following the government’s announcement of a Stamp Duty holiday, and it seems this is increasing the level of competition in the property market.
“With the increase in the number of prospective buyers since this announcement, many buyers are clearly willing to pay over the asking price in order to secure their dream home.”
NAEA Propertymark recommends sellers market their properties before 26th September to meet the stamp duty holiday deadline of 31st March.
Mark Hayward, Chief Executive, NAEA Propertymark comments: “With housing market activity excelling following the Chancellor’s announcement of a stamp duty holiday, we expect the market to remain busy into the new year.
“Following all social distancing measures and making sure everything is in order will help maximise your chances of completing ahead of 31st March.”
NAEA Propertymark provides the following tips for selling your home:
1. Show you are serious from the get-go
Show house hunters that you’re serious about the sale by reading up on and adhering strictly to all social distancing measures. Rearrange any cluttered furniture to prevent viewers from needing to touch too much and ensure social distancing measures are followed in line with Government and Propertymark advice. This includes vacating your property whilst viewings are taking place in order to minimise your contact with those not in your household.
2. Photos and virtual viewings
When buyers are looking at properties online or within an agency, they make their minds up in seconds. That’s why having the very best photography of your home is vital. The right photos, especially with house hunters currently more apprehensive to book in a physical viewing, could mean higher offers and a quicker sale. Most agents routinely use professional photographers or appreciate the value in investing in the latest technology, so it’s a good idea to have great photos which truly reflect the property to reduce unnecessary visits from buyers who aren’t serious.
3. Realistic asking price
The temptation to overprice as you know buyers will be saving on stamp duty is bound to backfire and lose you valuable time on the market. The majority of house viewings happen in the first 20 to 30 days of the listing, with virtual viewings currently taking place even sooner. If you then decide to reduce your initial asking price, the number of views will drop after the initial buzz, so don’t risk your house being stigmatised by an unrealistic asking price from the start.
4. Choosing an estate agent
When it comes to choosing an agent to sell your home, it helps to make a shortlist of possible agents. Once you have a shortlist of three or four possible agents, give them a call and ask them to provide a valuation for your property. This is a chance for you to check their communication skills, professionalism and knowledge. Don’t be afraid to ask questions, and make sure to gather as much information as possible – you’re going to need it when it comes to making a decision about who you want to sell your home.
NAEA Propertymark state that their agents follow best practice, meet all requirements of the profession and work to industry standards. Their estate agents hold Professional Indemnity Insurance and if they are holding monies are required to be covered by Client Money Protection to give you peace of mind throughout the sale of your property.
5. Paperwork
Ask your estate agent about the Propertymark Sales Protocol Toolkit, which will save you money, reduce the length of time you wait to move, minimise the risk of the sale falling through and remove many of the problems that so often occur in a property sale. This contains a Property Information Questionnaire that needs to be completed before your house is ‘sale ready’. Alongside this, you will also need copies of all relevant paperwork, including:
A copy of the lease (if the property is leasehold)
Documentation related to the freehold (if it’s a freehold property)
FENSA certificates for replacement windows
Your Energy Performance Certificate (EPC)
Relevant building restrictions
Building regulation certificate when alterations have taken place
New regulations have been introduced by the government to allow buyers and renters to view properties and move homes.
Estate agents can now open, viewings can be carried out, and removal firms and conveyancers can restart operations.
David Cox, Chief Executive of ARLA Propertymark and Mark Hayward, Chief Executive of NAEA Propertymark comment: “It’s great news for consumers and the industry that the housing market is being opened up and people can let, rent, buy and sell properties again. The new regulations provide clarity to agents and will allow them to deal with pent up demand from consumers.
“It’s also a step to reinvigorating the housing market and will be a boost to the economy. Safety, of course, will be paramount, and we would encourage everyone to ensure that they follow Government guidelines closely to protect others and themselves.”
Andy Marshall, Chief Commercial Officer, Zoopla, said: “We’re delighted that the Government has recognised the need to restart the property market, permitting estate agents to operate – within the parameters of common sense social distancing. Now is the time to get the market moving and to restore it to full health.
“With 373,000 transactions held up in the pipeline, amounting to £82bn in property value and £1bn of agent revenue, the Government’s move is set to be a catalyst for the broader economy. The multiplier effect of estate agency will stimulate cashflow for a network of industries, from removal firms to decorators to solicitors, benefiting the economy at both a local and national level.
Ben Beadle, Chief Executive of the National Residential Landlords Association (NRLA), said: “Tenants will now be able to look for a new home and move into it whilst those landlords who have unexpectedly faced empty properties will be able to put them back on the market.
“It is vital though that all viewings and house moves take place safely and in line with the Government’s guidance. We will continue to work with the Government, landlords and others to ensure that the risks of spreading coronavirus are minimised.”
Government introduces new regulations to kick-start housing market
Steve Olejnik, managing director of Mortgages for Business, said: “We can’t know exactly what’s going to happen to the market, but we expect a temporary, short-term fall across London and the southeast in the region of about 15%.
“But there’s no question that if you invest in bricks and mortar now, with a bit of haggling during the process, you are going to see a lot of long-term capital growth.
“I think values will be back at February 2020 levels by the spring or summer of next year. Landlords who have not asked for a repayment holiday will be well set to snap-up some bargains with the help of lenders who have demonstrated a willingness to lend since the third or fourth week of the pandemic.
“Yields from the various types of property remained pretty steady throughout 2019 and suggest property will offer a better return than many other investments in the future – especially to smart, professional landlords looking outside the box at HMO investments.”
Grant Lipton, co-founder of London-focused developer Great Marlborough Estates, has commented: “The housing market re-starting is obviously positive news, but it will need more than a press release to give buyers and sellers confidence and so the government needs to look at a range of measures to kick-start activity including a Stamp Duty holiday.”
Mary-Anne Bowring, managing director at Ringley Group, comments: “There’s no reason buyers or renters shouldn’t be able to move home if they are able to do so safely in accordance with social distancing guidelines so today’s announcement is welcome news.
“However, we shouldn’t pretend this means the housing market has returned to its pre-coronavirus state. Lockdown is set to continue in some form for an unknown amount of time, the resulting economic disruption will likely weigh down on activity in the for sale market.
“A Stamp Duty holiday proposed by RICS and others would likely see a stampede in transactions while an extended Help to Buy will support some sales and in turn housebuilding.
“Yet the government should think long term and introduce policies to reflect Britain’s changing housing needs. Private renters are a fast-growing part of the housing market and need catering to.
“Yet politicians seem intent in squeezing buy to let landlords out of the rental market and the build to rent sector – a positive emergence – simply isn’t big enough yet to absorb all rental demand.
“If the government cut Stamp Duty surcharge for landlords it could help stimulate the market by encouraging BTL investors to snap up homes to then rent out. Many landlords also help support housebuilding through off plan sales.
“The housing market as whole will also have to get ready for a digital-first approach to transactions as more tasks and jobs are done remotely.”
Dan Wilson Craw, Director of Generation Rent, said: “Lifting restrictions on the lettings market is welcome for thousands of renters who have been stuck in unsuitable homes. But a reopened housing market cannot be an excuse to lift the evictions ban which is in force until late June.
“Despite the furlough and increased housing benefit, 2.6 million private renters are at risk of arrears with no way of paying them off once the economy recovers. Just a third of landlords have offered flexibility on rent payments, so most of these renters will face eviction as soon as the ban is lifted.
“The worry and stress of the pandemic is giving renters sleepless nights. Many have difficult decisions to make right now. If Robert Jenrick is developing a plan that will reassure them, we need to know what it is urgently.”
Despite the property market coming to a halt due to the outbreak of COVID-19, there are still ways to get ready to hit the ground running once lockdown restrictions are lifted. NAEA Propertymark has shared their tips:
Get your paperwork ready
There is a lot of work needed to get your house sale ready and in many cases finding all the relevant paperwork can take several weeks so now is the time to begin gathering it. This also means that if something is missing, you can begin to take steps to get the replacement paperwork. During the course of your sale, you will be asked for evidence such as:
TA6/Property information questionnaire
A copy of the lease if the property is leasehold
Documentation related to the freehold if you own the freehold
FENSA certificates for replacement windows
Your Energy Performance Certificate (EPC)
Relevant building restrictions
Building regulation certificate when alterations have taken place
A Gas Safety certificate for a new boiler
It might seem like a lot but preparing all this paperwork will ensure that you can get your property transaction off the ground quickly and smoothly.
Get your finances in order
It’s a difficult time for many people financially right now, but if you’re thinking of taking out a mortgage later this year, now is the time to take a look at your finances. Make a note of your household bills and expenses and see if there is anywhere you could make savings. Work out if there’s anything you have had to do without during lockdown which you can cut out of your spending for the long term. It’s also a good idea to check everything if up to date on your credit report and see if any errors or out-of-date information have impacted your score.
Calculate the cost
With any property move, there are costs involved from removal vans to storage and depending on how much furniture and belongings you have, the costs can really vary. Usually the biggest cost will come from hiring a removal company; however, vehicle hire, storage, pets and postal redirection can all add up. While you have the time, explore the different options out there for you to find one that best suits your budget.
Be transparent
There are certain factors that you should be sure to make clear. This includes covenants on the deed, land boundaries on the property, potential issues with the property or surrounding area and any other information, good or bad, that you believe potential buyers need to know.
NAEA Propertymark’s Property Information Questionnaire, includes information you will need to disclose and gather to make this process much quicker and easier.
Spruce up your current home
First impressions count but making small tweaks to your home can make a huge difference. Use this extra time to spruce up your garden, tidy up any cupboards, declutter worktops and dig out your tools to complete those unfinished DIY projects. All of this will help when it comes to showing your house to potential buyers. You can even do virtual viewings while social distancing restrictions remain in place so don’t delay making your house look as good as it can.
Mark Hayward, Chief Executive, NAEA Propertymark comments: “While being unable to sell your house at the moment may be frustrating, there is still lots you can be doing to start the process and make sure you’re prepared for when lockdown restrictions are relaxed.
“Gathering all this paperwork may seem daunting, but it will make selling your property a lot easier and help ensure a speedy process. Our Property Information Questionnaire is a great starting point and will take you through all the information required succinctly and simply.”
NAEA Propertymark has provided advice for those looking to undertake maintenance in order to add value to their home while stuck indoors.
Mark Hayward, Chief Executive, NAEA Propertymark comments: “While being unable to list your house at the moment may be frustrating, the extra time you’re spending at home makes now a great time to take some simple steps and get your property into its most valuable condition for when the market picks back up.
“When the lockdown lifting is imminent, make sure you turn to your local NAEA Propertymark estate agent who will be able to offer further guidance on how to maximise your chances of a successful sale.”
The following are six tips from NAEA Propertymark to add value to your property:
A fresh coat of paint
If you have some spare paint available or can safely get it delivered, giving your home a fresh lick of paint is a very low cost way to add value. Fresh paint in modern colours can go a long way to giving your home a new lease of life, so do not be afraid to pick up the paintbrush.
Declutter your house
Buyers need to see the space they are getting, to see how good value it is. They want to see the condition of the walls and floor which is difficult when most of it is covered with other people’s belongings. By decluttering your home you are also allowing the buyer to see the space and imagine themselves living in it – you are selling a lifestyle and a dream.
Preen the garden
A well-kept garden really does give your home the ‘wow’ factor. Make sure it’s clear of any litter, you’ve mowed the lawn, removed any weeds, and cut back any overgrown trees which may be restricting light. Plant pots will give your garden a splash of colour, and setting up any outdoor furniture – like table and chairs, a BBQ, sun loungers or even a fire pit – can give future buyers a sense of what it’d be like to own your garden.
Wash all windows
Prospective buyers will pay more attention to windows, and they will immediately give a sense of how well maintained the rest of the house is. If you have easy access give them a thorough wash and if your house has wooden windows, then consider giving them a fresh lick of paint to stop them looking old and cracked.
A well-kept kitchen is key
The state of a kitchen can make or break a sale, so make sure yours is looking its’ best. Give all the cupboards and surfaces a deep clean and consider painting any old or worn cupboards as this will transform the space without you having to fork out on replacing cabinets or having to wait to hire a handyman.
Avoid over-personalisation
Nobody has the exact same taste in décor, and future buyers must be able to visualise themselves living in your space so consider removing any decoration that shows too much personality. Just because something adds character to the property to make it your home, this doesn’t necessarily mean any value is being added to the property’s saleability!
The government has confirmed that big changes will be made to building safety. New measures include mandatory sprinkle systems and consistent wayfinding signage. This will be in all new high-rise blocks of flats over 11 metres tall.
In his statement, Housing Secretary Rt Hon Robert Jenrick MP said: “The government is bringing about the biggest change in building safety for a generation.
“Today (2nd April 2020) we have made a major step towards this by publishing our response to the Building a Safer Future consultation. This new regime will put residents’ safety at its heart and follows the announcement of the unprecedented £1 billion fund for removing unsafe cladding from high-rise buildings in the Budget.
“Today we are also announcing that the housing industry is designing a website so lenders and leaseholders can access the information needed to proceed with sales and re-mortgaging, and the government stands ready to help to ensure this work is completed at pace.
“Building safety is a priority and the government is supporting industry in ensuring homes are safe at this difficult time.”
Mark Hayward, Chief Executive of NAEA Propertymark, comments: “Public safety is paramount, and we’re pleased the Government is introducing changes to ensure residents are kept safe.
“The introduction of a website will allow lenders and leaseholders to access information in a timely manner, enable transactions to go through quicker, and help those who have been left unable to sell or remortgage their property to do so.
“Ultimately, these changes will help the housing market get back on its feet once we’ve moved through this period of uncertainty.”
Mary-Anne Bowring, managing director of property management specialist Ringley, comments: “Today’s (2nd April 2020) announcement shows the government is slowly but surely moving in the right direction.
“The commitment to work with mortgage lenders is particularly welcome as while the housing market is in deep freeze now, with mortgage lenders pulling up the drawbridge and the Prime Minister urging people not to move unless absolutely necessary, this was a reality for many leaseholders before the Coronavirus crisis thanks to a lack of proper documentation about their cladding.
“The reality for the government is they need to be prepared to do more. As the Chancellor said they will do ‘whatever it takes’ to tackling the impact of the Coronavirus, they must have the same attitude to tackling fire safety, especially in residential buildings.”
