All posts by Caledonia Bureau

House Prices in 2022

If you are wondering what will happen to house prices in 2022, you aren’t alone! It’s one of the most common questions we are asked at Caledonia Bureau as people want to make sure they are investing in a property that will rise in value, not fall.

The good news is that if you are considering moving, we are seeing more properties coming to the market after a year of limited supply. It has been a highly competitive 18 months, so it’s great that we are starting to see more signs of properties being listed for sale.

According to Rightmove, the national asking price of a home will rise by 5% next year. On the average UK value standing at £342,401 this equates to around £17,000. Scotland is one of the most sought after regions across the UK and it is expected that house prices will rise by around 7%, with the lowest gains predicted to be in London at only 3%.

Zoopla has estimated that there will be a total of around 1.5 million sales in 2021 and the total value of homes being sold will be in excess of £473bn, which is £95bn higher than last year.

Although the availability of homes is improving, it is still not meeting demand which will continue to put upward pressure on house prices. Next year, however, could bring fresh opportunities for those looking to move home. This month on Rightmove, estate agents reported a 19% increase in enquries from those looking to get a valuation of their property compared to the same period in 2020.

Zoopla Research recently carried out a national survey of households in the UK. This revealed that 22% of home owners were ‘eager’ or ‘very eager’ to move home in the next 18 months as a direct result of the pandemic.

Another factor which could affect the rise in those wishing to move, is homeowners’ increased housing equity in their property. The average value of a home has risen by nearly £50,000 over the last five years and so one in seven local authorities across the UK, two thirds of homes have risen by more than the average, giving households more scope to sell up and move.

An increasing number of homeowners are preparing for a 2022 move so there will inevitably be more properties for buyers to choose from at the start of the year, which could slow down the rate of house price growth. One of the key drivers for this is the ongoing re-evaluation of housing needs, and a move to more hybrid working especially with the latest advice to work from home where possible.

Although the housing market will be busy, it won’t be as frenzied as it has been since summer 2020 when the market re-opened.

In addition to a higher choice of properties, the outlook for the availability of mortgage deals is good. Although lenders have put up their rates in recent months in anticipation of a rate rise that didn’t happen, borrowing is still cheap, and rates are low.

 

Create a Great Home-Working Setup

The latest advice is to work at home where possible, so we look at how you can create a space that’s both beautiful and functional, helping you to concentrate and become as productive as possible during this time. What’s more, if you are thinking of selling your home this could be a key selling point for potential buyers.

Whether your office is part of an existing room due to space restrictions – or you’re lucky enough to have a separate study – your set up needs to take into account demands that differ from when designing a bathroom, bedroom or kitchen. It needs to have a balance of being separate from the home whilst still in keeping with your taste and décor.

To design an office layout, first consider the desk position. Whether it’s against the wall or freestanding, makes sure you have enough room to push the chair back and stand up freely. If possible, put the desk near to a natural light source.

Ensure you have the right size desk to accommodate your desktop computer or laptop in terms of width – it will need to fit your computer plus the items you need alongside it within easy reach, such as a notebook reference books.

Whether your workspace is in a room of its own or you’re using an area of a kitchen, living room or bathroom, you need to consider the proportions of the space as well as orientation, light and architectural features. First assess the space available. Is it possible to work whilst able to see a view from a window? This can enhance your working space and reduce stress. If space allows, choose a comfortable desk and office chair so that you can avoid putting any strain on your back or arms. Thanks to cloud storage and slimline laptops and screens, you should be able to avoid stacks of clutter.

Make sure the area is well-lit so consider a strong desk lamp, wall light or tall floor lamp. It’s important to balance the natural and artificial light so look at adjustable task lighting to provide focused light or a desk-mounted lamp for localized light.

The layout of your home office could depend on how much furniture you need – depending on your profession you may only need a chair or desk, or you could require extra desktop space for equipment such as books, second screen or paperwork. If you require a printer – does this need to be right next to the desk? With wireless technology this could go somewhere else if space is limited.

If your home office setup is part of another room, the office furniture could be situated in the corner of the room, or an alcove. In a bedroom, consider using a screen to section off that part of the room.

If you are planning an office in a different room of a flat, you may want to choose to use carpet as this will offer sound proofing from neighbours, but if you have a chair with wheels, you might prefer a hard floor.

When choosing a desk there is a wide range of choice. If you are in a different part of a room, consider a space saving desk or one that is attached to the wall so that during non-working hours you can fold it away. You could use shelving in place of drawers to keep the floor space clear and retain a sense of space.  Your chair is an important investment if you will be working from home for several days a week or full time. There are many options available other than a black or grey office chair.

First Impressions Count

The first thing that potential buyers see when they enter your home is your hallway – that’s why it’s essential that you make a great first-impression.

Using colour

When choosing a colour for your hallway walls – whether it’s paint or wallpaper – make sure it works with your other rooms to create a flow.

For small hallways choose pale colours that make it feel bigger and brighter – especially if you live in a Victorian property where the hallway can often appear dark and narrow. If you have a wide spacious hallway, consider using colours such as olive green, petrol blue or dark grey so that your adjacent rooms appear more spacious and brighter in comparison.

Hallways can experience the most footfall in the home and walls can become knocked and marked, so choose paint or wallpaper than can be wiped clean. Alternatively, white, or coloured wall panelling is a good option.

Furniture

If you have the space, a nice piece of vintage or functional furniture can be both attractive and functional. Consider a chest for bags and shoes or pretty hooks for coats. If you have a larger hall a console table this can be used for a lamp for extra lighting and a mirror is a great way to make it appear bigger. Flowers can also be a nice decorative touch, especially if you are selling your home and want to make it look inviting and a key tray can keep things neat and tidy.

If your hallway is narrow and you need storage space, you may want to install shelving to keep the floorspace clear.

Wall decor

Try not to clutter up the walls with pictures – instead carefully place paintings, prints or photographs on a gallery wall. You could also consider wall lights if your space is dark. Remember that large paintings will draw the room in whereas mirrors will reflect the space and make it appear wider.

Flooring

Given that your hallway will have lots of footfall and dirt and grit will be walked in, choose a hardwearing floor that can withstand scrapes, scuffs, and dirt. Avoid carpet or natural fibres as these cannot be cleaned and will stain easily. If you have your heart set on a carpet, choose a polypropylene carpet that can be cleaned with bleach and chemicals to keep it clean. A hard floor is much easier to maintain, and you could add warmth by using a carpet or stair runner on your staircase.

A luxury vinyl floor is a great option especially if you have children and pets as it is a hardwearing, non-slip, water resistant option.

If you’re considering selling your home, contact our team at Caledonia Bureau.

Don’t Wait Until the New Year to Sell Your Home!

Are you Waiting Until the New Year to Sell Your Home?

The New Year marks new beginnings for many of us – and the property market usually sees a spike of activity after the Christmas festivities have ended.

Over the Christmas period many of us are preoccupied with getting ready for Christmas Day, Boxing Day and then New Year’s Eve celebrations with shopping, cooking, family visits, nights out and spending time with loved ones.

One side effect of this is that people realise that they could do with more space and a house that works better for them – especially as so many of us are working home part or full time. Add to that Christmas decorations, visitors and a Christmas tree taking up space – our homes can suddenly feel to small.  And with another recent development in the pandemic, working from home looks sent to continue for some time.

Every year Rightmove reports that they have seen record breaking numbers of visitors to the portal – particularly on (believe it or not) Christmas Day, Boxing Day and New Years’ Day. In fact, Boxing Day traditionally marks the start of the 2022 home-buying season. Last year on Boxing Day there were 54% more visitors on this day than in 2019 and this is a trend the portal has seen for the last 5 years.

The numbers are simply enormous – 51 million people visited Rightmove between December 26th and the first day back to work for many in January. There was also a 14% rise in the number of people making estate agent enquiries compared to the same period in 2019.

With this in mind, have you considered marketing your home before Christmas Day when there are less properties on the market? We have noticed that more people than ever are starting to see the benefits of doing this.

Get ahead of the game

By marketing your home now rather than waiting until the New Year, you’ll capture people logging on December 25th and December 26th. Remember last year there were 51 million people looking online at property – so it could pay to list your home for sale before, not after, the Boxing Day rush.

People often work right up until Christmas Eve and estate agents are no different – but with everyone taking time off over the Christmas week, you could get your property up and ready for offers much quicker than in the New Year.

Decoration-free images!

In addition, by marketing your home right now – your photographs won’t be cluttered up with decorations and your Christmas Tree – which can date your listing in January beyond. Ideally you want photographs to show your home as big and bright as possible, without any clutter.

Prep before selling

Another option to consider is to get your marketing materials ready for a New Year listing – we would be happy to delay marketing your home until after the festivities and get everything we will need ready and in place now, so it’s just a case of making the listing live. You can arrange your property valuation, instruct us and finalise the details of your property listing, so whenever you’re ready, we will put your home on the market. And if you don’t want to have to tidy up straight after Christmas, you could put your home on the market on Boxing Day but arrange for viewings to start in January giving us time to generate interest in your property.

Get in a strong buying position

If you put your home up for sale between now and Christmas and are able to secure a buyer, you will be in a great position to offer on a property in the New Year when it could be a competitive market. This could put you ahead if there are other offers.

Book a valuation today. 

Highest Number of Home Movers in 14 Years

This year we have seen the highest number of people move home since 2007.

According to the figures released by Halifax, the number of people who moved home went up by an incredible 132% to 265,070 from January to June this year. Compared to last year, this is a rise of 151,040 transactions in the first six months of when 114,030 home moves took place.

In the 12 months to June 2021 there were 461,010 home moves which is an increase of 50% on the previous 12 months. In fact, the number of people that moved home in the last year is nearly 100,000 more than at any time in the last 10 years.

This spike in numbers comes after years of a levelling out of the market with 2007 showing the highest numbers at 716,6502.

It appears that first-time-buyers have returned to the market in large numbers as the first half of the year showed 210,900 transactions. This is up by 74% compared to the same period in 2020.  Those purchasing their first home accounted for nearly half of all sales.

In terms of regional variations, there was a doubling of the number of home movers, but Scotland saw an increase at 86%.

In terms of property types, space is the biggest driver for those wanting to move. Although life is getting back to normal, many companies are moving towards a hybrid model whereby staff work at home part-time. In addition, with lockdowns still fresh in our minds, people want readily available access to outside space. As a result, detached homes were the most popular for movers, marginally beating semi-detached properties.

On average, home movers put down a deposit of 35% of the purchase price. Average deposits were worth at least 30% of the property in all UK regions.

As one of West of Scotland’s longest established estate agents, Caledonia Property has helped locals buy, rent, let and sell properties quickly, and with the minimum of hassle. Get in touch with our team on 0333 241 3333 today or send us a message to find out more.

 

 

House Prices in 2022 – What’s the Outlook?

The pandemic has increased demand, limited supply, and created the perfect storm in the housing market. Innes Allan is Caledonia Bureau Glasgow’s newest partner, and has worked for some of Glasgow’s leading estate agencies resulting in an exceptional level of knowledge when it comes the ins and outs of the property market in Scotland. Here, he analyses the outlook for the UK housing market in 2022 and takes a look at the latest reports on house prices in Scotland.

The outlook for 2022

According to recent figures from Zoopla, the housing market in the UK will have its strongest year since 2007 this year.

The latest monthly House Price index shows that sales volumes and house price inflation this year has been unprecedented – and this is no surprise to us at Caledonia Bureau. The fast pace of the property market has been driven by low mortgage rates, the stamp duty holiday at the start of the year, and a re-evaluation of buyers’ priorities. What’s more, demand for property has far outweighed supply – in particular, three-, four- and five-bedroom family homes. This high level of demand has characterised the property market since May 2020 which has been running at 30% above the five-year average since the summer months. There had been an expectation that houses prices would fall sharply at the end of the stamp duty holiday but with factors greater than the stamp duty holiday responsible for market conditions, prices steadily increased.

It is expected that demand for property will surpass levels recorded at the end of 2020, and the busy housing market looks set to continue into next year.

Supply and demand

At the root of the house price increases is the imbalance of supply and demand. This has supported house price growth in the UK which currently stands at 6.6%. All countries and regions of the UK have seen growth rates that exceeded the five-year annual average (except for London which has registered the lowest house price inflation).

After the first lockdown from March to June 2020, the property owners at the top of the ladder were the first people to move as mortgage availability for high LTV deals were largely pulled from the market making it difficult for first-time-buyers to realise their dream of home ownership. However, this year mortgage availability improved with the return of 5% and 10% mortgages following the government’s Mortgage Guarantee Scheme – which prompted lenders to start to broaden their product offering – and as a result the mix of movers is now returning to more normal levels.

The outlook for house price inflation and number of property sales across the UK is expected to be a balance of positive and negative influences next year.

We are still seeing the effects of the pandemic on buyers’ priorities as the hybrid of office and home working has resulted in the need for more internal and external space although buyers are less frantic in trying to move. We are also still seeing exceptional financial gains for homeowners in terms of the value of their homes.

Momentum to continue

Looking towards 2022 we believe that market momentum will come from the ongoing requirement for more space resulting from hybrid working, an increase in equity and lack of supply – all of which support house price inflation.

However, we are seeing an increase in the cost of living, reports of high inflation levels, higher mortgage rates, a cut in benefits and an increase in tax. We may also see unrealistic expectations from sellers around house prices given what we have witnessed this year. These factors could directly impact household buying power.

According to Zoopla, housing transactions could decline by 20% from their high of 1.5m in 2021, to 1.2m in 2022 which is in keeping with the long run average (although still relatively high compared to the last ten years). The portal expects 3% house price growth by the end of next year with London remaining low at 2%.

Mortgage rates look to increase next year 2022 ending the year closer to 3%, but a rise in mortgage rates will impact sales volumes rather than prices. Existing homeowners are protected from high mortgage rates as more than 80% of mortgages are on fixed rates, many for five years or more, and over the last few months many people have looked at changing their current deal in anticipation of rate rises.

A cooling off in the housing market?

Looking at the latest figures from Halifax, UK house prices increased for a fourth month running in October, climbing above an average of £270,000 for the first time. However, the lender predicted a cooling off in the market over the coming months if the Bank of England raises interest rates.

The average cost of a home rose by 0.9% on the previous month after increasing by 1.7% in September due to several factors, including first-time buyers supported by help with deposits from their parents, improved access to mortgage deals and low borrowing costs.

Halifax also reported that house price growth would remain strong and that the annual rate of house price inflation – 8.1% compared to the same month last year – was the strongest since June.

What’s happening in Scotland?

House prices in Scotland have increased by 13.2% in Scotland according to the latest figures from Chartered Surveyors Walker Fraser Steele. All but two of the local authority areas have seen prices rise over the past year with the average house price standing at £21,832 in Scotland. the largest increase was seen in Inverclyde at 6.3%, followed by East Dunbartonshire with an increase of 5.2%.

Five local authority areas were responsible for a 58% positive movement in Scotland’s average house price in September. These were (in order of influence) South Lanarkshire, the City of Edinburgh, Glasgow City, East Dunbartonshire and Highland.

Upward momentum is continuing at pace and we are seeing house prices and rental values continue on an upward trajectory despite an inevitable rise in mortgage  rates.

Competition for good quality homes is fierce here in Glasgow and we are seeing plenty of high-value sales particularly in Glasgow’s West End. We have an exceptionally high number of registered buyers who are ready to proceed with a house purchase many of whom have just missed out on a property – sometimes several.

We can’t predict what will happen next year, but the general feeling is that we won’t see a house price fall but that prices will continue to grow – albeit at a slower pace. Obviously the market will be affected by a rise in interest rates and an increase in the cost of living – but based on our enquiry numbers we predict a busy start to the year in both sales and letting.

Give us a call if you would like a no obligation valuation – or to take advantage of the high number of tenants seeking good quality homes in Glasgow and Central Scotland.

Innes Allan

Partner – Caledonia Bureau Glasgow

Making UK Homes Greener

Climate change is a hot topic, especially as Glasgow is currently hosting the 26th UN Climate Change Conference of the Parties (COP26) until the end of next week.

The COP26 summit brings parties together to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change.

In June 2019, the government passed several laws to end the UK’s contribution to global warming in an effort to reduce greenhouse gas emissions to net-zero by 2050 – the previous target was an 80% reduction.

With this target in mind, there is a lot to be done to raise awareness of reducing emissions and making improvements to our homes to this end.

Research from NatWest and IHS Markit has revealed that just over half of all homeowners are planning to make home improvements over the next ten years that will help to make their home greener. However, finance is the biggest barrier for them to be able to make the changes required. The survey revealed that 69% of respondents were looking to reduce their carbon footprint and household waste and were making efforts to this effect.

According to the survey of 1,500 carried out, over a quarter of homeowners anticipated making home improvements in the next five years with a further 16% planning to carry out improvements in 6 to 10 years’ time. The research showed that more needs to be done in the immediate future given that only 15% planned to make improvements in the next 12 months and 29% had no plans in the next decade due to affordability issues. Less than half of homeowners surveyed stated that they felt they were able replace their gas boiler with a more sustainable alternative and felt that the 2035 date of the potential ban was too far away for them to need to act now as the likelihood was that they would move. In addition, they felt that there could be financial support from the government in the future.

The Greener Homes Attitude Tracker found that:

  • 85% of prospective homebuyers found that having an EPC rating of C or above is seen as non-essential
  • The majority of respondents (56%) didn’t feel confident of being able to replace their gas boiler with an alternative due to high costs
  • 34% of respondents who are looking to buy in the next 10 years regarded double-glazed windows as an essential feature
  • 36% of homeowners plan to switch to an electric car in the next 10 years
  • Smart energy meter the most likely ‘green’ home feature to be installed in the next year.

To address any issues that may prevent homes from meeting the net zero target, NatWest has launched a ‘Sustainable Homes and Buildings Coalition’. It has partnered with British Gas, Worcester Bosch, and Shelter to improve the energy efficiency of UK buildings, to raise awareness and help customers understand the choices available to them to decarbonise their homes as residential properties generate around 15% of UK total climate emissions.

Renters

According to the latest research*, over half of tenants would be willing to pay more in rent if it meant that their property was greener. The survey found that 98% of renters would prefer to live in a home that is energy-efficient with 52% of respondents willing to pay an extra 10% in rent and 33% willing to pay 5% extra.

As one of West of Scotland’s longest established estate agents, Caledonia Property has helped locals buy, rent, let and sell properties quickly, and with the minimum of hassle. Get in touch with our team on 0333 241 3333 today or send us a message to find out more.

The Rental Market Q1 & Q2 2021

Q1

According to the latest rental indices for 2021 from LandlordZone using data from Belvoir, Q1 of this year revealed that rents fell slightly year-on-year across the UK.

The data shows a minimal fall across all UK regions including Scotland, with the average rent for Q1 sitting at 1% lower than the same period last year.

Given the catastrophic effect of the pandemic, it is surprising that rents have held up.

Q2

In the second quarter of this year, there were more positive results across the country where supply couldn’t keep up with demand. Rents in Q2 rose by 1.25% and there was a slightly bigger year-on-year increase of 1.5%.

Trends

Houses have outperforming flats from a rental and purchasing perspective with the pandemic exacerbating demand across all markets.

Trends do differ across regions and property type with houses in the most demand. In the second quarter of 2020, prices for flats decreased by 16%. Houses performed better, with no falls reported in Q2 this year. Overall, landlords with houses saw rent remain strong throughout the pandemic – and these are no increasing in all regions.

House prices

For landlords with a portfolio, it’s important to understand not only rental income but also what is happening to house prices across the UK. According to data from Walker Fraser Steele and Acadata, the average house price in Scotland hit a fresh high of £211,029 at the end of August 2021. This is a monthly rise of 1.8% which equates to £3,685 since July, and a 12.1% annual rise – with no sign of a let up.

In addition, all 32 Scottish local authorities have reported price rises over the year so far, and that transaction levels in August were at a seven-year high.

House prices from June to July stood at 2.7% and was a six-year high so the latest increase.

As one of West of Scotland’s longest established estate agents, Caledonia Property has helped locals buy, rent, let and sell properties quickly, and with the minimum of hassle. Get in touch with our team on 0333 241 3333 today or send us a message to find out more.

Glasgow Sees UK’s Largest Uplift in Rental Demand

According to research carried out this month, rental demand in urban areas has steadily climbed in all major cities during the third quarter of 2021 as we see a return to office working.

The Barrows and Forrester Rental Demand Index analyses rental listings across the UK, presenting an average demand score for each of the UK’s major cities. By looking at where has the highest number of properties already let it highlights the percentage of all rental listings in the UK.

The analysis presented in the report shows that rental demand averaged 42.9% from July to September (Q3) 2021, an increase of 9.9% compared to April to June (Q2) and 6.8% higher than the same period last year.

Rental demand in Q3

Glasgow has enjoyed the largest quarterly uplift, along with Cardiff, with rental demand rising by an incredible 22.1%. This is followed by Bristol at 21.9% and Edinburgh at 21.5%. There was also a rise in tenant demand by more than 20% from July to September with Cambridge also in the top five at 19.6%.

The cities that make the top 10 in terms of an uplift in demand include Manchester at 14.8%, Newcastle at 11.2%, Southampton at 10.9%, Plymouth at 10.8% and Birmingham at 10.5%. Newport is the only city to have seen a decline in demand in Q3, down -5.2% on the previous quarter.

Annual uplift

In terms of an annual uplift in tenant demand, featuring in the top 10 are Cardiff, Cambridge, Edinburgh, Manchester, Bristol, Glasgow, and Birmingham.

Innes Allan says:

We are seeing indicators across Glasgow that the rental market is picking up at an exceptional rate, after a challenging time for both renters and landlords. During the pandemic, many landlords experienced void periods – especially those in the student rental market which is prominent in the West End – and a decrease in rents in order to secure a tenant. We are pleased to see that there are clear signs of recovery not just in Glasgow but other major cities across the UK as people return to more normal working conditions – which has a positive knock on effect on the wider city. We expect this to continue over the coming months as tenants look to find a new home in time for the festive period and the start of 2022″.

As one of West of Scotland’s longest established estate agents, Caledonia Property has helped locals buy, rent, let and sell properties quickly, and with the minimum of hassle. Get in touch with our team on 0333 241 3333 today or send us a message to find out more.

 

Where in the UK Offers the Best Value For Money?

Zoopla has recently carried out research to find out which property type offers the best value for money – with some areas of the UK costing 12 times more than others.

According to the latest analysis, the average UK property costs £282 per square foot – in London’s Kensington and Chelsea this is an incredible £1,491 while Scotland is far below the average at £160 per square foot.

In terms of property types, the best value for money is a two or three-bedroom house and providing the least value for money is a one or two-bedroom flat. A three-bedroom house costs an average £262 per square foot whereas a one-bedroom flat costs and average £389 per square foot.

The search for more space

During the pandemic and in the 14 months after the property market re-opened after a three month near-shutdown, the search for more space resulted in three and four-bedroom houses being the most in-demand property types. People were looking for an additional bedroom to accommodate working from home as well as more outside space following months of restrictions. The average cost of a three-bedroom detached house has gone up by £25 per square foot, whereas a two-bedroom flat has gone up by £7 per square foot.

Location, location, location

As well as the type of property you are purchasing, the location also determines the price of a property. The best value for money can be seen in the North East at £157 per square foot, with Scotland a close second at £160 per square foot.

The most expensive area, unsurprisingly, is London where the prices are double the national average. This is followed by Cambridge, Brighton and Oxford.

The amount of space you can buy with £5,000 varies from region to region – in Scotland this would buy you 31 square feet whereas the UK average at 18 square feet.

Good news for sellers

If you’re selling a three-bedroom family home, it’s good news as this type of home is most in demand and the value of this type of property is still rising and they are commanding higher values per square foot.

Innes Allan says:

“Although following the pandemic, houses are in exceptionally high demand (with no sign of this slowing down) here in Glasgow’s West End, flats will always be in exceptionally high demand from both property investors wanting to take advantage of the student and professional lettings market, and first-time buyers and second-steppers wanting to live close to the incredible amenities and transport links right on our doorstep. House prices here hold their own, regardless of what’s happening in the wider Glasgow and Central Scottish property market. Whether you’re buying or selling, and want to get advice on the outlook for the Glasgow area, get in touch.”

As one of West of Scotland’s longest established estate agents, Caledonia Property has helped locals buy, rent, let and sell properties quickly, and with the minimum of hassle. Get in touch with our team on 0333 241 3333 today or send us a message to find out more.