Martin Blake's Blog

MBS Land & New Homes Celebrating 8th Anniversary!

mblakesymes@gmail.com (Martin Blake-Symes) — Mon, 21 Jul 2025 11:08:03 GMT

Martin and Caz Blake-Symes are delighted to be celebrating their eighth work anniversary today.

The business was set up on 21 July 2017. Martin had over 25 years in the Land and New Homes Sector when he decided to go out on his own.

Over the past 8 years, Martin has undertaken consultancy work for many of the larger National Developers and Housing Associations, as well as building strong relationships with some of the smaller, flourishing developers.

Martin has the reputation of having an excellent understanding of local markets, pricing, and realistically advising on maximising the potential of any piece of land in any given location.

Caz supports the business behind the scenes and manages Martin’s diary as well as the office.

Although based near Bristol, through the investment in industry-leading software, Martin’s contacts and the ability to get an understanding of a given area, he can produce appraisals and reports for locations throughout England and Wales.

To find out more about MBS Land & New Homes, please visit

www.mbslandandnewhomes.co.uk or call Martin on 07973 886609.

Zoopla Report - UK House Price Index – February 2024

mblakesymes@gmail.com (Martin Blake-Symes) — Fri, 01 Mar 2024 16:24:50 GMT

"The housing market has proved very resilient to higher mortgage rates and cost of living pressures. More sales and more sellers shows growing confidence amongst households and evidence that 4-5% mortgage rates are not a barrier to improving market conditions"

Richard Donnell Zoopla's Executive Director - Research

Sales market activity continues to improve

All measures of sales market activity continue to improve as pent-up demand returns to the housing market. Buyer demand is 11% higher than a year ago. A better indicator of market health is sales agreed which are 15% higher than a year ago - evidence of greater buyer confidence and more realism on pricing by sellers. The North East (+17%) and London (+16%) have led the rebound in sales.

Growing confidence amongst sellers is boosting the number of homes for sale, which are 21% higher than a year ago. More supply is increasing choice for would-be buyers and supporting sales.

While increased activity levels are welcome news, it's important to note that a small proportion of sellers continue to reduce asking prices to attract buyer interest. Asking price reductions are lower than a year ago but remain above average, evidence of continued price sensitivity amongst buyers. Asking price reductions of 5% or more are greatest in the South East and East of England.

The average estate agent is agreeing 6 new sales a month, up from 5.2 a year ago. This is evidence that house prices don't need to fall to support growing sales volumes. This is feeding through into our UK house price index, which continues to record a slowdown in the rate price falls. Annual house price inflation is currently -0.5%, up from the recent low of -1.4% recorded in October 2023. The average UK house price is 1.5% below the peak of £268,000 in October 2022.

Slowing price falls is a trend being recorded across all regions and countries of the UK. Five southern English regions are registering annual price falls of up to -2.1%, led by the East of England. House price inflation has moved into positive territory in the remaining 4 regions of England in addition to Wales, Scotland and Northern Ireland, where annual price inflation is 4.3%.

A three-speed housing market

Higher mortgage rates and cost of living pressures have driven a rapid slowdown in the rate of house price inflation over the last 18 months. There are some notable variations in price inflation across the country which are primarily explained by the relative affordability of housing.

Current housing trends fall into one of three groups.

1) Southern England regions - covering East of England, South East and South West regions, these areas have registered the largest annual price falls. Rising mortgage rates and reduced household buying power have hit higher-priced markets harder than more affordable markets. Average home prices are £344,000 in these areas, 30% above the UK average. The pace of price falls is starting to moderate in Southern England, but it's lagging other areas of the UK.

2) London - we see London differently to the rest of southern England. While it is the most expensive housing market, with an average price of £534,000. almost 2x the UK average. However, weak house price inflation over the last seven years has improved affordability and opening the market up to more potential buyers than before.

The rebound in demand and low growth in the supply of homes for sale (just 7% in London vs 21% for the UK) explains why house price inflation is rebounding quicker than the southern England regions.

3) Rest of the UK - while house price growth has slowed rapidly over the last 12 months, annual price falls have been very limited across the rest of the UK where average house prices are 28% below the UK level. This explains why the impact on buying power from higher mortgage rates outside Southern England has been less pronounced.

Our index shows Scottish house prices remaining in positive territory over the whole of the last year. Northern regions of England, the West Midlands and Wales are registering firmer pricing in response to rising sales agreed and better levels of housing affordability.

NeMortgage rates fall but remain above 4%

Falling mortgage rates have been an important catalyst for improving market sentiment and increased levels of housing market activity in recent weeks. Faster earnings growth and rising incomes are also starting to offset the impact of higher borrowing costs, albeit slowly.

Mortgage rates have fallen back to where they were a year ago. This recent decline is likely to plateau at the current levels. Lenders have been pulling mortgage deals below 4% as the cost of finance used to fund mortgages has increased modestly in recent weeks.

Buyers should anticipate 4-5% mortgage rates over much of 2024. Our consistently held view is that 5% mortgage rates are the tipping point for annual house price falls. Mortgage rates over 6% for a sustained period would lead to larger double-digit price falls. Mortgage rates in the 4-5% range are consistent with flat to low single digit price rises.w Paragraph

The outlook - sales more likely to rise than house prices

There is clear demand from homeowners and first-time buyers looking to move and buy their first home in 2024. This is going to support higher sales volumes, but we don’t expect higher house price growth.

The reality is that the housing market is still adjusting to higher mortgage rates and the impact of reduced buying power, the impact of which has varied across the country. Sellers need to remain realistic on pricing and celebrate the fact that their home is likely to attract more buyer interest, increasing the chances of a agreeing a sale. Mortgage rates could move a little lower over the year, but this hinges on the timing of future base rate cuts, which may come later this year.

Sales market momentum has been building over the last five months. We believe that the market is on track for 10% more sales in 2024 than last year, set to total 1.1m. More supply is boosting the potential for growth in sales. It is important, however, that sellers don’t start expecting more for their homes.

Comments from Martin

It is pleasing to see that overall this report makes positive reading.

Although many younger people are struggling with the thought of a 5% mortgage interest rate, for those of us over 50, we will remember the pain of interest rates being 13-15% was the norm - yet he market bounced back!

I realise that times are very different now in relation to the amount of deposit required and the earnings to borrowing ratios, but overall the market remains strong .

If we can get past this election year and either this one or a new Government will take on some of the planning issues and backlog of approvals, we should all definitely feel happier.

It would be great to hear your own experiences in the markets local to where you are building. Please get in touch.

Martin

2023 Housing market and overview for 2024 – much more positive than predicted

mblakesymes@gmail.com (Martin Blake-Symes) — Tue, 02 Jan 2024 11:22:04 GMT

Adapted from the Zoopla UK Price index report-December 2023

Key Takeaways

Annual house price inflation is -1.1%, down from +7.2% a year ago
Market sentiment improving with new sales agreed +17% year-on-year
House price falls starting to moderate as sales improve
Mortgage regulations a key reason for only modest price falls in 2023, along with strong labour market and rapid earnings growth
First-time buyers are largest group of would-be movers in next 2 years (40%) followed by upsizers (34%)
Almost half of buyers living in southern England looking to move >10 miles in search of better value for money
House prices to fall 2% over 2024 with 1m sales

Regional figures may vary.

Sales hold up in Q4 2023, providing support for prices

The final weeks of 2023 have recorded above average levels of new sales, 17% higher than a year ago and ahead of 2019 levels. Market sentiment is improving due to rising incomes and an initial decline in mortgage rates. An increase in available supply, up a quarter on last year, is also boosting choice and supporting sales.

Buyers and sellers are becoming more aligned on pricing, reducing the downward pressure on values. Zoopla’s headline UK house price index has recorded a slower pace of annual price decline at -1.1% in November 2023, down from +7.2% a year ago. The level of price falls have now moderated across all regions and countries of the UK

Why haven’t house prices fallen by more in 2023?

History would suggest that mortgage rates rising from 2% to over 5% would have led to larger price falls than what has been recorded over 2023. There are several reasons why prices have defied predictions of larger falls. The strength of the labour market has been an important factor along with high earnings growth. Lenders have also pursued forbearance policies to support households struggling with repayments, which has limited the number of forced sellers.

But perhaps the most important factor here has been the tougher mortgage affordability testing for new borrowers since 2015. These regulations were designed to stop households taking on excessive

debt at a time of low mortgage rates. They have stopped a major housing over-valuation and built resilience for many households to manage the transition to higher mortgage rates.

While mortgage rates got as low as 1.3% in late 2021, all new mortgage borrowers had to prove to their bank they could afford a 6-7% stressed mortgage rate to get the loan. Banks were also limited to 15% of new business at high loan to income ratios over 4.5 times salary.

These regulations have effectively capped buying power for home buyers. They require the borrower to have a higher income to buy and put down a larger deposit, which is especially true in higher value housing markets.

Today lenders are stress testing new borrowers at close to 9% despite mortgage rates starting to fall. This regulatory constraint on buying power is one reason we believe house prices are unlikely to rise in 2024, even as base rates start to fall later in the year.

First-time buyers to remain largest buyer group in 2024

Despite the affordability challenges facing first-time buyers, they are the largest group of would-be buyers. Zoopla’s latest consumer survey found that 40% of people looking to buy a home in the next 2 years are first-time buyers. The rapid growth in rents continues to motivate this group - average rents have risen faster than average mortgage repayments over the last 3 years.

Upsizers account for a third of would-be buyers in the next 2 years who will typically be buying a larger home that will require a larger mortgage. This group have been biding their time in 2023 waiting for the outlook on the economy and mortgage rates to become clearer.

The trajectory for mortgage rates and getting better value for money will be key considerations for upsizers in 2024.

Outlook for 2024

Zoopla expects the steady momentum in new sales that has developed over the final part of 2023 to continue into early 2024, with the usual seasonal rebound in demand over Q1 as pent-up demand returns to the market.

While mortgage rates are edging lower, affordability remains a key challenge for mortgage-reliant households who are making home moving decisions. The impact of higher mortgage rates continues to feed through with half of mortgagees are yet to move onto higher rates from cheaper fixed rate deals agreed before 2022.

The modest decline in house prices over the year means UK housing still looks 10-15% overvalued at the end of 2023. We expect this position to improve over 2024 as incomes rise and house prices drift 2% lower over the year. Sales volumes are expected to hold steady at 1 million sales completions in 2024.

I am constantly working on all the latest data, taking into account local variations and competitor challenges on an individual site and/or location basis.

I will be delighted to look at any developments or potential opportunities that you may be considering.

Wishing you a happy, stress-free and healthy 2024.

Martin

We are celebrating our 6th Business Anniversary!

mblakesymes@gmail.com (Martin Blake-Symes) — Fri, 14 Jul 2023 13:46:24 GMT

We are really delighted to be celebrating our sixth work anniversary today!

Despite challenging times in the property market at present we are still keeping very busy and focused on supporting our clients who range from smaller privately owned developers through to national Housing Associations.

We have also been asked to look at some bespoke recruitment placements, which has been very interesting.

One area of the business which has markedly increased over the past twelve months is that we have been asked to support developers on the sales aspects a lot more. This ranges from working and training their on-site and estate agency-based staff through to site signage and social media.

We would like to take this opportunity to thank all our clients and we will continue to offer maximum support at all times.

If you wish to discuss any issues, please email Martin at martin@mbslandandnewhomes.co.uk

Zoopla House Price Index - May 2023

mblakesymes@gmail.com (Martin Blake-Symes) — Mon, 05 Jun 2023 09:36:28 GMT

Adapted from a Zoopla article by Richard Donnell Executive Director – Research 30 May 2023

Buyers and sellers are back doing business but the outlook for the housing market hangs in the balance. Our House Price Index looks at the latest housing trends in May 2023 and why recent inflation figures might put a brake on market activity.

Key takeaways

UK house prices have fallen 1.3% in the last 6 months but they’re no longer falling as quickly.
Lower mortgage rates in the first half of 2023 have supported an increase in housing market activity.
More homeowners are putting their house up for sale as confidence improves.
Housing market conditions vary across the country with weaker demand in areas where house prices have risen the most.
Mortgage regulations have limited the impact of higher mortgage rates on house prices so far.
But the increased likelihood of further interest rate rises, meaning higher mortgage rates, is likely to weaken demand and market activity in the second half of the year.

House prices fall 1.3% in last 6 months - but they’re no longer falling as quickly.

UK house prices and activity in the housing market are continuing to adjust to higher mortgage rates and rising living costs.

Our UK House Price Index for May 2023 shows a 1.3% drop in house prices over the last 6 months.

More recently, house prices have been falling more slowly than they did at the end of 2022 as buyers have started to regain some confidence.

At the same time, the number of property sales in the UK has increased thanks to lower mortgage rates over recent months and the strong labour market.

The annual rate of house price growth is 1.9% for the UK - down from 9.6% last year - ranging from -0.2% in London to 3.6% in Wales. We expect house prices to remain broadly the same for the rest of the year.

However, the latest inflation data is higher than expected. This increases the likelihood of a further Bank Rate rise.

This will have a knock-on effect on mortgage rates - which could now edge higher in the coming weeks.

This would reduce buying power for those using a mortgage and limit the ability of buyers to move, keeping house price growth very low in the second half of the year with the likelihood prices could drift lower.

Meanwhile, the number of property sales in 2023 is on track to be 20% lower than last year.

More homeowners put their house up for sale as market confidence improves.

Our House Price Index for May 2023 shows that the number of new sales agreed in the last four weeks is 11% higher than the five-year average for the same period.

This is boosting the flow of homes for sale because many buyers are also selling their home at the same time. The flow of homes coming onto the market is up 16% on the 5-year average.

However, it’s vital that sellers remain realistic on pricing to attract buyer interest if they are serious about selling.

18% of homes currently for sale on Zoopla have had the asking price cut by 5% or more - but in February, this figure was 28%.

Price reductions typically come 8 weeks after the first listing as sellers try to boost interest from buyers.

Landlord sales add to the supply of properties for sale.

Some landlords are adding to supply levels by selling their properties to rationalise their portfolios and avoid the impact of higher mortgage rates.

Our Index shows that 1 in 10 (11%) of homes currently listed for sale were previously rented out. This figure peaked at 14% in 2020 during the pandemic and has gradually decreased since then.

Five years ago, around 50% of these rental properties listed for sale returned to the rental market - either unsold or bought by another investor. However, only a third are returning to the rental market more recently.

These ex-rented properties are 25% cheaper in asking price than owned homes (£190,000 vs £250,000). They are appealing to first-time buyers, particularly considering tougher buying conditions this year.

Housing market conditions vary across the country in May 2023

Our House Price Index tracks sold house prices across the country and it shows that the housing market looks very different across Great Britain.

Scotland, the Northeast and London continue to have the highest buyer demand and 10% more agreed sales than the national average.

In the Midlands, Southeast, Southwest and East of England on the other hand, buyer demand remains below average. These are areas where house prices rose the most over the last 3 years.

Together with higher mortgage rates and the cost of living, fewer buyers can afford the boosted house prices in these areas.

However, there are still more sales than average across the Midlands and the South of England, showing a good number of active buyers in the market to move.

No build-up in unsold houses sitting on the market.

While demand is weaker and supply is rising, there’s no backlog of unsold houses sitting on the market.

The number of homes listed for more than 90 days is in line with the 5-year average in most areas.

New sellers need to set their asking price carefully, but there are no large house price falls looming to clear housing stock at this stage.

Buyer demand is weaker where house prices have risen faster than earnings.

The difference in regional housing markets can be explained by how much house price growth each region has seen in the last 7 years.

Above-average house price growth has made some areas unaffordable and increased the sensitivity of would-be home buyers to higher mortgage rates.

House price growth over the last 7 years has ranged from 12% in London to 47% in Wales. During that time, average earnings increased 30% in the UK.

So those areas like Wales - where house price growth has considerably outpaced earnings - are where buyer demand is below average at present.

In contrast, the regions and countries with the lowest rate of house price growth since 2016 are seeing more activity from buyers and sellers.

In London, house prices are twice the UK average - but below-average house price growth over the last 7 years means affordability has improved.

The capital is still expensive but offers better value for would-be buyers, especially for flats which are unchanged in average value since 2016.

What’s more, higher migration into the UK is likely to be supporting above-average activity in London’s housing market.

Has the housing market avoided a house price crash?

A big increase in the cost of mortgage borrowing would historically precede a fall in house prices.

But the impact of higher mortgage rates is less pronounced than in the past. This is thanks to mortgage regulations introduced by the Bank of England in 2015.

Anyone taking a mortgage since then has had to prove to their bank that they could afford a 6.5-7% rate, even if they were paying a 1-2% rate.

It’s as if the housing market has been operating at 6-7% mortgage rates already. This is a key reason we’ve seen only a small impact on house prices so far.

Now, most banks are testing buyers’ affordability for 8% mortgage rates or higher, which has limited demand and sale numbers in 2023.

What will it mean for the housing market if mortgage rates edge higher from May 2023?

The increase in UK housing market activity this year is down to average mortgage rates falling back towards 4%, in line with the underlying cost of fixed-rate finance to banks.

However, this underlying cost jumped at the end of May, which implies that we could see an increase in mortgage rates in the near term.

This trend has been building during May as concerns over inflation have risen.

The robust housing market activity in the last 2 months indicates that 4-4.5% mortgage rates are generally manageable for home buyers - despite this being double the rates of late 2021. But higher living costs are also eroding spending power.

With mortgage rates of 4-5%, we expect our Index to show annual UK house price growth of +2% to -2% and circa 1 million sales a year, as long as the labour market remains strong.

The more mortgage rates move above 5%, the greater the impact on people’s ability to get a mortgage and buy a home, and the greater likelihood that UK house prices will start to fall.

Banks have mortgage funding at the current rates for the next few months from May, so rates should not jump immediately - although they are starting to increase rates on their best deals.

Much depends on financial markets and their assessment of the outlook for short-term interest rates.

Overall, it seems likely that the housing market momentum of spring 2023 will weaken in the second half of the year, with the impact depending on the outlook for mortgage rates. But falling energy bills and rising earnings continue to support buying power and offset the impact of higher mortgage rates.

To see the full article on Zoopla please visit https://www.zoopla.co.uk/discover/property-news/house-price-index-may-2023/

What are the housing market predictions for 2023?

mblakesymes@gmail.com (Martin Blake-Symes) — Wed, 04 Jan 2023 18:21:13 GMT

Happy New Year!

I found this article on Zoopla written by Nic Hopkirk on 22 December 2022, and thought some of the insights were very interesting. Although some of the highlighted towns and cities are further North than some of you build in, the mention of Swindon, supports findings that I am already aware of.

Key takeaways

·Tide turns on the desire for coastal and rural areas as demand for affordable cities and apartments rises
Buyers once again attracted to urban settings with plenty of jobs and services
The dynamics that have shaped the housing market over the last 5 years are shifting

Affordability and value for money will be the big key drivers for the housing market in 2023. These two factors are going to flip the flight to rural and coastal areas, which has dominated the housing market in recent years, into reverse. Instead, apartments and urban areas, which lost some of their popularity during the pandemic as the nation began the search for more space in idyllic locations, are making a comeback.

Zoopla’s Executive Director for Research, Richard Donnell says “The dynamics that have shaped the housing market over the last 5 years are shifting. We expect affordable urban centres to fare better than average in 2023 but the inner London market may require another year before it is ready to rebound.”

Why are urban areas becoming popular again?

Influenced by higher mortgage rates, household incomes and the actual level of house prices, buyers are being priced out of the more expensive markets, preferring to look in areas where homes are more affordable.

Increasingly keen to secure homes in urban settings, where jobs are being created and more services are available, buyers are now showing a stronger preference for towns and cities. The popularity of family homes in city suburbs and commuter areas is also rising, with demand for homes in these areas climbing to above average levels over the last year.

How rising mortgage rates are affecting where buyers choose to live

Mortgages are currently needed for seven out of every 10 home purchases.

Higher mortgage rates are currently affecting what many people can afford to buy, as they mean more income is needed to secure a sale. The more expensive a market, the greater the number of households that are priced out.

This in turn weakens demand, leading to fewer sales and possible price reductions to secure those sales in these areas. In affordable markets with lower average house prices, the opposite is true.

Why affordable markets will fare better in 2023

As demand for more affordable areas increases in 2023, these markets are likely to fare better than their more expensive counterparts in terms of price falls over the coming months. Most housing markets have recorded house price gains of 25.4% over the last 5 years. That's above the level of consumer price inflation (+19%) and average earnings (+22%) over the same time period. Economic growth, good affordability and low mortgage rates have all enabled above average price gains over this period.

The Oldham postal area recorded the highest price increases since 2017 at +47%, while Newport, Swansea and Bolton also enjoyed high value gains. However, we expect house price growth to slow in these higher-growth markets in 2023. UK house prices are predicted to fall by an average of 5% next year.

But in the more affordable markets, the falls are likely to be lower, as the hit to buying power from higher mortgage rates will be felt less keenly.

Which affordable cities are buyers interested in?

Major towns and cities, including Bradford, Swindon, Coventry, Crewe, Milton Keynes and Southend are all registering above-average demand. These areas all have their own employment base, but they also enjoy good transport connections into much larger employment centres, such as London, Leeds, Manchester and Birmingham.

We believe employment growth will continue to stimulate housing demand in these affordable city regions throughout 2023.

Why flats are becoming better value for money

Apartments make up around 1 in 5 homes in the UK, but price inflation for them has lagged behind the growth enjoyed by houses. Across the UK, houses are currently valued at just over twice the price of flats. That’s the highest price difference seen for 20 years. Flats haven’t experienced those same value gains as houses partly because the search for space made them a less popular option during the pandemic, but also because buyers were experiencing concerns over cladding and leasehold charges.

However, we expect demand for flats to increase throughout 2023, as buyers seek better value for money.

The government’s moves to ensure cladding problems are remediated in most buildings will also help to boost their popularity further.

If you would like to discuss or price any sites or potential developments, please give me a call on 07973 886609.

Now that Help to Buy comes to an end: what else is available?

mblakesymes@gmail.com (Martin Blake-Symes) — Tue, 15 Nov 2022 10:22:44 GMT

Adapted from information sourced through Rightmove and the Home Builders Federation

With the current squeeze on people’s incomes and the gloom over affordability at the moment, especially for people seeking to get on the property ladder. I thought I would take a look at what is available to help people into their first home.

If we take a look at some of the government schemes and legislation changes that aim to either help get people on the ladder, or to buy their next home.

What’s happening with Help to Buy?

I’m sure anyone in the new homes business will know that the Help to Buy Equity Loan, set up to help first-time buyers purchase a home in England, has now closed to new applications. And all homes being purchased via the scheme will need to have completed by the end of March next year.

What about Help to Buy ISAs?

The deadline to open a new Help to Buy ISA has already passed. However, anyone with an account already open can add up to £200 per month until the end of November 2029. Buyers can still claim the government bonus – currently 25% on savings up to £12,000 – which is payable on completion of a first home purchase until 1 December 2030.

If they don’t already have a Help to Buy ISA, then a Lifetime ISA could be used as an alternative. To open one, the person needs to be over 18, but under 40. You can save up to £4,000 each year until you’re 50, and the government will top-up the saved amount with a 25% bonus (a maximum of £1,000 per year as a bonus). Like the Help to Buy ISA, you’re able to withdraw the funds to purchase your first home.

Stamp duty relief for first-time buyers

In September, the government announced a permanent change to the amount of stamp duty tax that’s paid on homes purchased in England and Northern Ireland. The threshold at which homebuyers start to pay stamp duty was raised from £125,000 to £250,000. If you’re a first-time buyer, there are further savings offered. You won’t pay any stamp duty on a home priced up to £425,000. For a home priced above this, you’ll pay 5% on the amount you spend between £425,001 and £625,000. Of course, we are assuming the new Chancellor does not change anything this week of course.

Deposit Unlock scheme

The Deposit Unlock scheme aims to help people buy new-build homes with a 5% deposit. This is for buyers looking to buy a new-build home, this is an industry-led scheme.

The scheme is being introduced by the new home developers.

Deposit Unlock: how it works

Deposit Unlock is aimed at buyers – both first timers and those already on the property ladder – who can raise a 5% deposit and want to buy a brand new home. The remaining 95% of the purchase price can then be borrowed from selected lenders participating in the scheme.

The first step for the buyer is to find a new-build property included in the scheme at one of the participating developments.

What’s the difference between Deposit Unlock and Help to Buy?

Under the Help to Buy scheme the buyer puts down a 5% deposit, they then take a government equity loan of up to 20% of the cost of the property (or up to 40% in London) and apply for a mortgage for the rest. The government’s loan is interest-free for the first five years. With a Deposit Unlock mortgage, they will take out a mortgage of a maximum of 95% and pay interest from the start.

Lenders take out insurance on mortgages that carry a higher risk, including those taken out by first-time buyers with limited deposits. The Deposit Unlock scheme is backed by mortgage indemnity insurance funded by the developer, which shields lenders from any potential loss if the property is sold for less than the owner paid for it.

There will be no extra cost to buyers, however the buyer’s obligations to the lender remains unchanged.

Who is eligible to use Deposit Unlock?

Deposit Unlock is open to buyers in England, Wales and Scotland.

Unlike the current Help to Buy Equity Loan scheme, Deposit Unlock isn’t just for first-time buyers, so can be use it to up or downsize, or to relocate. However, it’s not available to buy-to-let borrowers. Eligibility criteria for the scheme will be the same as the criteria a chosen lender applies to all its mortgages. This includes looking at the buyer’s affordability, how long have they been in the current job, their credit score etc.

Which lenders are offering Deposit Unlock mortgages?

Nationwide and Newcastle Building Society and Accord Mortgages, have signed up to offer mortgage products through the scheme. More lenders are expected to join in the coming months, giving the buyers more choice.

Many developers have signed up to this scheme as it is potentially a great benefit for buyers who could be otherwise be excluded from looking for a new home because of a limited deposit.

To find out more about this scheme go to the Housebuilders Federation website or use the link below:-

www.hbf.co.uk/deposit-unlock ww.hbf.co.uk/deposit-unlock/

https://www.hbf.co.uk/deposit-unlock/

https://www.hbf.cohttps://www.hbf.co.uk/deposit-unlock/.uk/deposit-unlock/

https://www.hbf.co.uk/deposit-unlock/

https://www.hhttps://www.hbf.co.uk/deposit-unlock/bf.co.uk/deposit-unlock/

We are delighted to be a supporting business for The Brightwell 100.

mblakesymes@gmail.com (Martin Blake-Symes) — Sun, 20 Mar 2022 14:45:38 GMT

As you may be aware, my wife Caroline has had MS for a considerable time and her type is Secondary Progressive MS, for which there is no cure and unbelievably no treatment and very little support on the NHS.

We are fortunate that in the Bristol/South Gloucestershire/ North Somerset areas that we have The Brightwell. The Brightwell is run as an independent charity which does not receive any funding from the NHS nor the MS Society but is a real lifeline for many of us living with chronic neurological conditions. She receives specialist neuro-physio, as well as support from staff and other members.

She has been been a member and volunteer fundraiser for a number of years and recently set up the Brightwell 100. The Brightwell 100 was launched in February 2022. This new initiative will form the key part of The Brightwell’s corporate fund raising, vital to keep the charity running and flourishing.

The Brightwell, incorporating The West of England MS Therapy Centre, is looking to have a cohort of 100 corporate sponsors each supporting the charity with a “share” or “part share” of £1,000. This will enable The Brightwell to develop and increase the services and support that we offer those living with chronic neurological conditions.

Please visit www.thebrightwell.org.uk/brightwell-100 for further information.

2022 – What does the New Year have in store for us?

mblakesymes@gmail.com (Martin Blake-Symes) — Tue, 04 Jan 2022 10:28:27 GMT

January 4, 2022- back to work and some sense of “normality”. I expect like so many of us we have all had our festive arrangements changed by the dreaded “Omicron” over the past few weeks, although hopefully we can all get back in front of our laptops, keep looking ahead and get on with what hopes to be a more promising and positive year ahead.

Land prices continue to be very competitive and keen developers are paying top dollar for smaller, sub 50-unit sites, despite the challenges of taking on the planning system!

Many of my clients are not only asking me for new acquisitions, but also, I’m being asked to reappraise existing sites in relation to mix, pricing and market opportunities.

The end of the stamp duty holiday has failed to dampen demand from potential buyers, which is up 30% on the five-year average. Thanks to the tapering-off period at the end of the holiday, the anticipated ‘cliff edge’ is nowhere to be seen and the pandemic-induced boom still has further to run.

According to Zoopla, an estimated 1.5 million homes are expected to have changed hands in 2021, beating 2007’s previous record. The combination of a nation re-evaluating what they want from a home, low mortgage rates and the stamp duty holiday have all driven unprecedented levels of demand.

Homes collectively worth £473 billion will be sold this year, that’s up £95 billion on the number of offers accepted in 2020. However, the level of activity is expected to slow next year as the market faces a number of headwinds Annual house price growth was running at 6.6% at the end of September, but this headline figure masks significant regional variations. Price growth continues to be strongest in regions where property remains affordable, with Wales seeing the strongest gains of 10.4%, followed by the North West At the other end of the spectrum, London, where the typical property costs 11.5 times average earnings, recorded price growth of just 2.3%.

Moving into 2022, the housing market will be influenced by both positive and negative factors. On the positive side, the pandemic-induced search for space has further to run. The ability to work from home has expanded the horizons for many office workers who now feel able to look further afield. Zoopla HPI research shows that 22% of people currently want to move, significantly higher than the usual 5% in a normal market. The high levels of equity homeowners have built up during the past 18 months and the shortage of homes on the market is expected to support house price growth well into 2022.

But on the downside, the rising cost of living, combined with an expectation that mortgage rates and taxes will rise next year, will impact affordability. House price growth is expected to end 2022 at 3%, with growth likely to be strongest in the East Midlands and Northwest and weakest in London. Transaction levels are expected to fall by 20% to 1.2 million.

The bottom line is that business looks very positive for developers, but it is vital that we all stay acutely aware of what is happening in specific localities and need to keep abreast of any local market influences, competitor actions and future opportunities.

Since I am covering a wider area now for my own consultancy work, I am happy to work with clients in the whole of the southwest, Wales, West and East Midlands, M4 corridor, south coast and home counties.

I wish you a very successful 2022 and on a personal level, a happy and healthy New Year!

Kindest Regards

Martin Blake

MPs back setting new-build house ground rent at one peppercorn a year

mblakesymes@gmail.com (Martin Blake-Symes) — Thu, 02 Dec 2021 11:14:23 GMT

MPs have backed setting the cost of ground rents on new houses in England and Wales at "one peppercorn" a year. The government-sponsored plan, if it becomes law, will effectively leave owners who buy only leases - rather than freeholds - paying nothing. The move follows concerns that leaseholders are being charged exorbitant, fast-rising ground rents. But Labour says ministers need to go further and completely ban the selling of houses without a freehold.

The Leasehold Reform Bill passed its first stage in the Commons unopposed in late November. The bill, which has already been passed by the House of Lords, will now undergo further scrutiny by MPs before it can become law. It is relatively normal for someone buying part of a shared building - such as a flat in a converted house or purpose-built block - to own just a leasehold, lasting up to 999 years.

Someone else owns the freehold - the property as a whole and the land on which it is built. In this situation, the leaseholder pays ground rent to the freeholder. But, according to research from 2018 by Propertymark, the association for letting and estate agents, the arrangement is increasingly being applied to people purchasing new-build houses. Many buyers claim they have been mis-sold a leasehold by a developer.

In 2018 the government consulted on capping ground rent on leasehold houses at £10 a year, but the Leasehold Reform Bill stipulates setting the annual rate at "one peppercorn". Housing Minister Eddie Hughes told the House of Commons that the system had become "a nightmare for some" new-house buyers. Regardless of whether the ground rent is a nominal peppercorn or thousands of pounds, the fundamental issue is that no meaningful service is is provided in return," he added. We want to end this for new leases. That's why we're legislating, so that new residential long leases will have no financial demand for ground rent. Instead, nothing more than an actual peppercorn can be collected from the leaseholder."

The term "peppercorn", referring to non-existent or minuscule payments, is thought to date back to the 16th or 17th Century. While the spice itself was highly valuable in bulk, a single corn was considered to be of little worth.

Mr Hughes said that, while freeholders could "physically" demand this payment, they were unlikely to do so, and that this would ensure meals remained "well-seasoned".

For Labour, shadow housing secretary Lucy Powell said leases for both old and new houses should be banned. She said the system was a "scam on an industrial scale", adding that the bill did "nothing for those trapped" in existing leaseholds. But her party is supporting the legislation, while arguing it needs to go further.

The difference between a freeholder and a leaseholder

Someone who owns a property outright, including the land it is built on, is a freeholder.

With a leasehold, the person owns a lease, which gives them the right to use the property. But they still have to get their landlord's permission for any work or changes to their homes. When a leasehold flat or house is first sold, a lease is granted for a fixed period of time, typically between 99 and 125 years - but sometimes up to 999 years. People may extend their lease or buy the freehold, but this can be complicated and expensive and involve legal fees.

Leasehold house owners are also often charged expensive ground rent, as well as fees if they want to make changes to their homes. A leasehold house can also be difficult to sell or mortgage.

Why UK interest rates could rise this week

mblakesymes@gmail.com (Martin Blake-Symes) — Wed, 03 Nov 2021 13:15:27 GMT

How would mortgage holders be affected by a rate rise?

Adapted from a BBC article by Robert Plummer

Borrowing money in the UK is now as cheap as it ever was - and it's been that way for years. But perhaps not for much longer. The country's main interest rate, set by the Bank of England, has been below 1% since 2009, in the wake of the global financial crisis. In March 2020, as the coronavirus pandemic caused the biggest economic slowdown for centuries, the rate was cut to an all-time low of 0.1%. But now the tide is turning and that era of ultra-cheap money could be coming to an end.

The first in a series of rate rises could come as early as this week, with the Bank's rate-setting Monetary Policy Committee (MPC) due to pronounce on Thursday. If it does lift interest rates, many people with a mortgage will face higher repayments, since lenders will seek to increase their rates in line with the Bank's decision. However, savers will be hoping for a better return on their money.

So why are interest rates expected to rise and how high could they go?

What would an interest rate rise achieve? The main point of making it more expensive to borrow money is to curb inflation - the rate at which prices are rising. As the UK economy recovers from the impact of Covid, consumers have more money to spend. That pent-up demand is pushing up the cost of a whole range of goods, some of which are in short supply because of the way in which factors such as the pandemic and Brexit have disrupted supply chains That's bad news for the Bank, which has a mandate to keep the annual rate of inflation at 2%. If it goes as high as 3% or as low as 1%, the Bank's governor, Andrew Bailey, has to write a letter to Chancellor Rishi Sunak to explain why and what he is going to do about it. We are already in that territory, since inflation is currently at 3.1%. And the Bank expects it to rise further, hitting 4% or even 5% before subsiding again.

Why is the cost of living going up?

If the Bank puts interest rates up, the effect is to persuade people not to borrow and spend. Instead, consumers will tend to save, because returns from savings are higher. With less disposable income being spent, the economy slows and inflation goes down again. That's the theory, at least.

What are the drawbacks?

Interest rates can be a bit of a blunt instrument. If they go up too far and too fast, that can choke off economic recovery and even cause a recession. The Bank has been sitting on its hands in recent months, taking the view that the burst of inflation will be short-lived and will fix itself without the need for intervention. And to be fair, other countries are seeing a similar price surge, yet neither the US Federal Reserve nor the European Central Bank has so far stepped in to raise rates.

But markets now expect the UK's main interest rate to rise from 0.1% to 0.25% in the first instance, with further increases to follow, perhaps reaching the pre-Covid level of 0.75% by the middle of 2022. Those expectations are already having a direct impact on the mortgage market, with borrowers trying to lock in a

low rate on five-year fixed deals while they still can, while some of the best deals are already disappearing.

Mortgage experts say they are expecting a "slow and measured" increase in the cost of home loans.

How would mortgage holders be affected by a rate rise?

·Some 74% of mortgage holders are on fixed-rate deals, so would only see a change in their repayments when their current term ends
Of the remainder, 850,000 homeowners are on tracker deals, which usually move in line with Bank rate changes
The other 1.1 million are on standard variable rates (SVR), often because they have been automatically moved at the end of their fixed-deal term. The rate of interest they pay can be changed at any time by their lender, as is often the case if the Bank rate is altered
Were there to be a 0.25 percentage point rise in rates, this would translate to approximately an additional £26-a-month mortgage payment on average for a tracker rate customer and £16 for the typical borrower on an SVR

Source: UK Finance

So is a rate rise a done deal?

There are nine people on the Bank's MPC, so at least five of them need to be in favour of putting up rates. Analysts reckon that those voting for an increase will include the governor, Mr Bailey, who has said the Bank "will have to act" over rising inflation. The Bank's new chief economist, Huw Pill, has declined to say how he will vote, but he has said the Bank is in a "very uncomfortable place" and that the decision on Thursday is "finely balanced". If rates do not go up on Thursday, the MPC will have other chances at its next two meetings in December and February. Markets seem convinced that there will be at least one rate increase by then.

Suppose they hold off. What's the worst that could happen?

Those whose memories stretch back as far as the 1970s will be uncomfortably aware of the dangers posed by out-of-control inflation. Price rises reached their peak in 1975, hitting a rate of 22.6%, as the cost of oil tripled and sent petrol prices rocketing. But in those days, powerful trade unions were able to demand and receive higher wages to match those price increases. This, it has been argued, pushed prices up further, causing an inflationary spiral. No-one is seriously suggesting that those days are set to return. But they do serve as a reminder of why central banks around the world were given a mandate to seek price stability in the first place. If the Bank of England cannot demonstrate its ability to get a grip on rising prices, it could face questions about how well it is doing its basic job.

Please call me on my mobile 07973 886609 if you would like me to carry out any appraisals, market appraisal or revaluation tasks.

Martin

The First Homes Scheme

mblakesymes@gmail.com (Martin Blake-Symes) — Fri, 18 Jun 2021 14:16:36 GMT

I have been looking into the new Government First Homes Scheme as it will obviously have an impact on Developers and HAs alike.

I have put together a brief document which I hope you find useful.

I would really appreciate your thoughts on any issues relating to this scheme.

Thanks Martin

Download First Homes Scheme PDF

Time to review your prices?

mblakesymes@gmail.com (Martin Blake-Symes) — Thu, 29 Apr 2021 09:39:35 GMT

Whether I carried out the initial appraisal for a new development or not, I strongly recommend that the development or potential development is reappraised.

Due to several strong factors the market is particularly strong at the moment as confirmed in this month’s Zoo up report. This is a UK wide situation making most opportunities across the country very attractive.

Regional trends in house price growth

Annual price growth in the year to March continues to outperform in regions where homes are more affordable, with values growing at an annual pace of 5.9% in Wales, 5.3% in Yorkshire and the Humber and 5.2% in the North West of England.

London, which has the highest average prices for homes of any region is lagging, with 2% growth over the year.

At a city level, Manchester and Liverpool retain their spots at the top of the price charts, with 6.5% and 6.3% annual growth respectively.

At the other end of the scale for major cities, Aberdeen prices are down -1.7% on the year, although this is a more modest decline than the -3.1% seen in March last year. Oxford and Cambridge, two of the markets with highest value housing, are registering relatively muted growth of 1.6% and 2%.

It was even reported that in Aberdare in Wales, an area not known for its popularity that 13 new build houses sold in less than three hours after dozens of people slept outside an estate agent to bid for new homes the following morning! The scenes - more than 18 hours before the 14 homes went on sale - were described as "completely bonkers."

If you would like to have a talk about prices or appraisals for any existing or potential developments, please give me a call on my mobile which is (07973) 886609 or email me on martin@mbslandandnewhomes.co.uk

I look forward to hearing from you.

Martin

Wishing you a very Happy Easter

mblakesymes@gmail.com (Martin Blake-Symes) — Wed, 31 Mar 2021 11:02:49 GMT

We would like to wish all our friends, family, clients and colleagues a very Happy Easter. We hope that as Spring is now here, we will all be able to enjoy time with family and friends again as we ease out of lockdown. Best wishes from Martin and Caz

Mortgage approvals reach highest levels since 2007

mblakesymes@gmail.com (Martin Blake-Symes) — Tue, 05 Jan 2021 13:05:09 GMT

The scramble for property continues as buyers rush to take advantage of the stamp duty holiday

Adapted from a Zoopla article by Nicky Burridge

Mortgage approvals soared to a new 13-year high in November as the property market showed no signs of slowing down. A total of 105,000 mortgages were agreed for people purchasing a home, the highest level since August 2007, according to the Bank of England.

Approvals were up from 98,300 in October (also a 13-year high) and broke through the 100,000 barrier for the first time in 13 years. The increase comes as lenders continue to expand on the number of mortgages available for first-time buyers.

There are currently 160 different deals available for people with a 10% deposit, up from a low of 51 in October last year, but still significantly below the 762 that were available in January 2020, according to the latest figures from Moneyfacts.

Why is this happening?

The buoyant mortgage approval figures suggest the mini boom in the housing market still has further to run. The high level of transactions has been sparked by a combination of the stamp duty holiday on homes costing up to £500,000, alongside people re-evaluating their housing needs following lockdowns and periods of working from home.

Meanwhile, the rise in mortgage products for buyers with small deposits indicates lenders are feeling less risk-averse than they were in the early days of the coronavirus pandemic, when many of these deals were taken off the market.

Who does it affect?

The increase in mortgages for people borrowing 90% of their home’s value is good news for first-time buyers. But while the availability of these mortgages has increased, there are still very few options for people with only a 5% deposit, with just eight different 95% mortgages currently available.

Although product choice for people with a 10% deposit has increased, the cost of the deals remains significantly higher than this time last year. The average interest rate is now 3.65% for a two-year fixed rate mortgage, compared with 2.59% a year earlier, despite the Bank of England base rate falling by 0.65% during the period.

Mortgage rates are even higher for people with just a 5% deposit, averaging 4.44% on a two-year fixed rate loan, up from 3.25% in January 2020.

What’s the background?

Zoopla data suggests the current mini housing market boom still has further to run. Buyer demand was 33% higher in December than it was in the same month of 2019, according to Zoopla’s latest House Price Index. Meanwhile, a record Boxing Day bounce saw traffic on Zoopla’s property search portal surge by 70.5%, considerably higher than the 61% jump seen a year earlier.

But the market is expected to start slowing down in the second quarter of this year once the stamp duty holiday ends on March 31 and unemployment rises as government support measures are withdrawn.

Top three takeaways

Mortgage approvals for house purchases soared to a new 13-year high in November as the property market showed no signs of slowing down
A total of 105,000 mortgages were agreed for people purchasing a property, the highest level since August 2007
The number of mortgages available to people with a 10% deposit has increased to 160 from a low of 51 in October last year.

Christmas Message from Martin Blake

mblakesymes@gmail.com (Martin Blake-Symes) — Mon, 21 Dec 2020 11:52:00 GMT

Oh my goodness! What a difficult and challenging year 2020 has been for everyone.

I’m very grateful that MBS Land & New Homes has successfully carried on throughout the pandemic, lockdown and all the other restrictions.

We have adapted the business, using the technologies available to us and have been doing considerably more Zoom appointments which has worked out very well for our clients in these days of social distancing and limited face-to-face visits. We have also been handling more aspects of marketing including working closely with developers regarding new websites, branding and their relationships with Estate Agents which has been positive.

The housing market has remained very buoyant although many lenders reduce the number of products that they were offering, earlier in the year and made some of the lending criteria harder. The Stamp Duty Holiday has acted as a great incentive for buyers. It will be interesting to see if this is extended by the Chancellor in the light of new Tier 4 restrictions.

I sincerely wish you and your families a much happier 2021 and hope that life returns to “normal” as soon as possible.

On behalf of myself and Caz, we wish you a Merry Christmas I look forward to working with you again over the coming months.

Kindest regards

Martin Blake

Mortgage approvals hit 13-year high

mblakesymes@gmail.com (Martin Blake-Symes) — Tue, 01 Dec 2020 13:51:35 GMT

Adapted from an article by Isla MacFarlane www.showhouse.co.uk

According to the latest figures from the Bank of England, more mortgages are getting rubber-stamped than at any time since September 2007.

Net mortgage borrowing remained robust at £4.3 billion in October 2020. Mortgage approvals for house purchase increased further to 97,500, the highest since September 2007. Effective interest rates on new mortgage borrowing ticked up to 1.78%.

Mark Harris, chief executive of SPF Private Clients, said: “With mortgages approvals at their highest level since September 2007, the market continues to be robust. But the circumstances are very different to 2007; back then, those highs were followed by the credit crunch but this time around there is far more scrutiny on mortgage underwriting and the assessment of affordability. This, combined with historic low interest rates, mean we should not see a repeat of that crisis.

“There is more good news for mortgage borrowers with greater availability of 90 per cent loan-to-value mortgages as a number of lenders returned to the market in recent days. This should help bring down rates on high LTVs, making those deals more accessible, and further boosting the market.”

The number of mortgage approvals for house purchase continued increasing in October, to 97,500 from 92,100 in September. This was the highest number of approvals since September 2007, 33% higher than approvals in February 2020.

Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “The Bank of England figures are always a reliable indicator of past and future housing market activity. As have others in the recent past, they reveal just how determined buyers have been to take advantage of the stamp duty holiday and continuing low interest rates.

“Judging by what has been happening on the ground since, we expect the numbers to remain robust for at least the next month or two until the reduction in activity which we have noticed over the last few weeks as the stamp duty deadline draws close, begins to have an impact on transaction numbers. The underlying strength of the market does not appear to be waning, at least for the time being.”

Celebrating my 3rd work Anniversary!

Mon, 20 Jul 2020 15:48:00 GMT

On the 17th of this month, I celebrated my third anniversary of setting up MBS Land & New Homes!

Although April, during full lockdown, was a complete non-event, I am delighted to say that May and June picked up and July is actually busy!

On a weekly/monthly basis, my work is varied which is great. Most of my time is spent out and about carrying out appraisals on potential development and pricing. Recently my work has increased in terms of dealing with the marketing of sites and the ever-present issues of dealing with the respective Estate Agents to maximise sales and profitability.

In terms of clients, these vary from smaller developers through to large national Plcs, and I appreciate the loyalty shown to me by all my clients.

Potential land acquisitions seems to take up so much of my time, with the lead times appearing to be forever lengthening between initial visits through to completion – I know I’m not alone in finding that.

Thank you to all my clients and fingers crossed that the remainder of 2020 will be positive and profitable

Martin

Chancellor unveils Stamp Duty holiday

Wed, 08 Jul 2020 18:14:23 GMT

Chancellor Rishi Sunak has confirmed that the Stamp Duty threshold will be increased to £500,000 immediately until March 31 next year. Sunak confirmed rumours of the Stamp Duty holiday during his summer economic update this afternoon. He said the Government will temporarily increase the nil-rate band of residential Stamp Duty in England and Northern Ireland from £125,000 to £500,000. This will apply from today (July 8th) until March 31 2021.

The Treasury said nearly nine out of ten people getting on or moving up the property ladder will pay no Stamp Duty at all. The aim is to boost the housing market and the wider economy to help the UK recover from the consequences of the coronavirus pandemic. It comes after the property market was effectively closed between the end of March and mid-May.

Agents and portals have said there has been more demand since the market reopened but it is so far unknown if this will transfer into sales. Rightmove said there are more than 510,000 properties with asking prices under £500,000 on the portal, making up 81% of all residential stock for sale in England. The property website said 291,000 properties under £500,000 are currently available for sale, making up 78% of all properties listed in England. It said people enquiring about properties under £500,000 on Rightmove makes up 84% of all buyer enquiries in England.

Mark Peck, head of residential at Cheffins estate agency, said this could provide the incentive many unsure buyers and sellers need. He said: “Whilst the market has already been significantly busy post-lockdown, cutting Stamp Duty on purchases up to £500,000 really will be the catalyst get the industry flying. The most likely impact of this measure will be a flood of buyers coming into the market who previously had sat on their hands due to political and economic uncertainty, and this flurry of activity will bring with it price rises as demand outweighs supply. He suggested it would also boost those with a low deposit as they could now increase it with the Stamp Duty savings.

How much will buyers save?

How much a buyer in England or Northern Ireland could save under the temporary measure will depend on how much the property costs – as a general rule, the more expensive the property, the more you'll save (up to the maximum of £500,000). For example, if you buy a property for £400,000 in England and you're not a first-time buyer, you would usually pay £10,000 (made up of £2,500 on the portion between £125,001 and £250,000, and £7,500 on the portion between £250,001 and £400,000). But for now, you'd pay no stamp duty on the property at all – saving you £10,000. The Chancellor has said the average saving will be £4,500.

What if I've exchanged but not completed?

The requirement to pay stamp duty is triggered when you complete the purchase of the property. So if you've exchanged prior to 8 July but not completed, you'll benefit from the increased thresholds.

Residential Rates on purchases from 8 July 2020 to 31 March 2021

If you purchase and complete on a residential property between 8 July 2020 to 31 March 2021, you only start to pay SDLT on the amount that you pay for the property above £500,000. These rates apply whether you are buying your first home or have owned property before.

You can use the table below to work out the SDLT due:

Up to £500,000 Zero

The next £425,000 (the portion from £500,001 to £925,000) 5%

The next £575,000 (the portion from £925,001 to £1.5 million) 10%

The remaining amount (the portion above £1.5 million) 12%

From 8 July 2020 to 31 March 2021 the special rules for first time buyers are replaced by the reduced rates set out above.

Higher rates for additional properties

The 3% higher rate for purchases of additional dwellings applies on top of revised standard rates above for the period 8 July 2020 to 31 March 2021.

The following rates apply:

Up to £500,000 3%

The next £425,000 (the portion from £500,001 to £925,000) 8%

The next £575,000 (the portion from £925,001 to £1.5 million) 13%

The remaining amount (the portion above £1.5 million) 15%

It will be really interesting to see the data from the property portals regarding any increase in traffic and demand. I would be really interested to hear from any agents and developers regarding enquiry levels and any client feedback.

Demand for new build homes rockets 66%

Sat, 04 Jul 2020 11:54:54 GMT

Adapted from a Zoopla Property News team July 1, 2020

Zoopla analysis shows interest in newly built properties has bounced back to a higher level than before coronavirus struck Demand for new build homes has soared by 66% since the housing market reopened, surpassing levels seen before lockdown.

The upsurge seen in the six weeks since 13 May is a continuation of the trend recorded at the start of 2020, when the new build market enjoyed its strongest start to the year since 2016. Persimmon Homes, one of the UK’s largest home builders, has seen a massive 215% month-on-month jump in demand through Zoopla buyer leads during the past six weeks. Leads are generated by buyers requesting more information from home builders via property listings.

The recovery in the new build homes sector significantly outpaces the revival in the market for older properties, where demand is currently 46% higher than before lockdown. The surge in demand for new build properties has been particularly strong among first-time buyers, growing by 87% compared with levels during lockdown.

Alex Rose, director of New Homes at Zoopla, said: “While the industry has undergone an unprecedented period, the new homes market has shown itself to be geared towards a rapid rebound.”

Why is this happening?

The resilience of the new build market is likely to be down to two factors. On the one hand, developers are used to having to sell homes when physical viewings are not possible. Mark Cook, group sales and marketing director at Persimmon Homes, said: “Our experience in offering virtual viewings, exceptional computer-generated imagery (CGI), and understanding what it takes to sell off-plan, enabled us to sustain demand, even when the market was suspended at the height of the lockdown.”

At the same time, demand is also likely to have been supported by the fact that the Help to Buy scheme can only be used to purchase a new build property. With many lenders withdrawing their 90% and 95% loan-to-value (LTV) mortgages in the face of the pandemic, more first-time buyers in particular are likely to be turning to the scheme in a bid to get onto the property ladder. The Help to Buy initiative tops up a 5% deposit with a five-year interest-free loan worth 20% of the property’s value

Who does it affect?

The North East has seen the strongest rise in demand, with interest in new build homes soaring by 139% since lockdown was lifted. The West Midlands is not far behind with a rebound of 121%, followed by the East Midlands at 108%. Wales recorded a 74% jump in demand in the six weeks to 21 June, despite the fact the market did not reopen until 22 June. Meanwhile, Scotland recorded a 33% in demand, even though the market remained closed until 29 June.

What’s the background?

First-time buyers are often described as being the lifeblood of the housing market, so it's good news for the new build sector that demand is so strong among this group. Going forward, Rose expects the initial spike in demand for new properties seen since the housing market reopened to 'settle' as the summer progresses and sales are agreed.

“First-time buyers will no doubt uphold a level of demand, with many keen to make the most of Help to Buy, following the withdrawal of many 90% LTV mortgage products,” he says.

This research comes as Prime Minister Boris Johnson unveiled plans for more than 180,000 new affordable homes to be built. He also announced changes to the planning system to make it easier to convert commercial buildings into residential ones, and to demolish vacant buildings and use the land to build homes. Property owners will also be able to build additional space above their properties through a fast-track approvals process.

This is excellent news! Long may this level of interest continue and hopefully results in completed sales. From my viewpoint, there is plenty of activity and interest. Please contact me if I can assist with any appraisal or market research work.

Working from home - it could be a lot worse.

Wed, 10 Jun 2020 13:03:41 GMT

I think it is fair to say, that most of us would prefer to be working in our “normal” working environments. Since setting up MBS Land & New Homes in July 2017, my office is based at home. I know from speaking to some friends and colleagues that for many juggling working from home, home schooling and all the other trials and tribulations that Lockdown has presented us with has been very stressful.
I am really fortunate, that my office looks over the Bristol Channel from Portishead. We are very lucky that although we bear the brunt of any extremes of wind rain and snow, we can often enjoy stunning sunsets. I took this photo on Sunday evening and thought I would share it in the hope that you can enjoy it too.

Many sites and offices are now opening and the general consensus is one of positivity. Let us hope that the market picks up very soon!

The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Positive indicators as the housing market opens up

Mon, 01 Jun 2020 10:12:04 GMT

Adapted from a Property Eye Article June 1 2020

As the housing market quickly shifts gears out of lockdown, Reapit has released a dataset covering 13 weeks of KPI activity on their Agency Cloud platform up until the penultimate week of May. The data show a number of interesting trends that represent a very positive barometer for market recovery and growth.

From the last week of February (Pre-Covid) the data reveal a drop across the board on key indices which plateaued by the end of the month as the lockdown came into effect on 23 March. Tracking the data further across sales and lettings from end-February to end-May demonstrates an expected decline in activity across all activity streams, but as seen in the positive week-on-week percentage change, recovery is in the wings.

Combined net viewings for sales and lettings are now only -26.36% below pre-Covid levels, whilst combined applicants’ registrations only have another 10.51% to go before recovering to February numbers. Reassuringly, combined internet enquiries for sales and lettings are 10.63% higher than what was seen at end-February.

An overall positive upturn in growth once restrictions were lifted on 13 May is revealed in the following two weeks, with combined net viewings for sales and lettings increasing by 87%, combined applicants registered increasing by 42%, and combined internet enquiries increasing by 8%.

Sales offers, valuations and instructions data also show a strong recovery over the last two weeks of recorded data as buyers and sellers return to the market. Instructions rose by 88%, valuations are up 78%, and sales offers are back to two-thirds of pre-lockdown levels. How many of these new instructions relate to prior Covid valuations is uncertain, but early indications are that there is a positive return to the housing market.

The sales pipeline is probably one of the most interesting aspects that has been monitored and that is showing resilience, with only a drop of 6.6% of pipeline units pre-Covid. In terms of lettings, there is an overall 15% increase in rent collection portfolios, indicating many landlords moving the collection of rent to the agents to manage.

hN.B. The Price Changes percentage reflects the percentage of properties in the Reapit system on which there was a price fluctuation. It is not the percentage size of the actual price differences. Reapit is not alone in noting this upward trajectory in consumer demand. PropTech firm Coadjute recently revealed a 24% jump in listings just prior to the loosening of restrictions. The portals OneDome and Nethouseprices, both part of OneDome Group, say that they’re processing up to 4 leads a minute – up from 3 leads per minute in March and 1.7 in January.

Rightmove reported over 6 million visits to its site on May 27th, and previously commented in the wake of the market reopening two weeks ago that enquiries sent to agents by the portal were up 70% within the first four hours of agencies returning to business, with the upward trend already rising before the lockdown was lifted..

I have been working on market and valuation updates throughout the lockdown period. As from June 1, full appraisals can be available for sites and development opportunities in England.

Coronavirus: Moving home allowed as curbs lift on estate agents in England

Wed, 13 May 2020 14:08:29 GMT

The government has set out plans to restart England's housing market, which has been in deep freeze since the coronavirus lockdown. Estate agents can now open, viewings can be carried out and removal firms and conveyancers can restart operations.

Housing Secretary Robert Jenrick said the changes must be carried out under social distancing and safety rules. It is estimated there are 450,000 buyers and renters with plans on hold.

"Our clear plan will enable people to move home safely, covering each aspect of the sales and letting process, from viewings to removals," Mr Jenrick said. "This critical industry can now safely move forward, and those waiting patiently to move can now do so."

Meanwhile, the property markets in Wales, Scotland and Northern Ireland remain shut. Home viewings are not permitted under lockdown regulations and their land registries are either running a reduced service or are not registering transactions.

Alistair Elliott, chairman and senior partner at estate agents Knight Frank, told the BBC's Today programme the measures were "a major first step. We believe the public will have confidence to re-engage with the housing market," he said.

Jonathan Hopper, chief executive of real estate consultants Garrington Property Finders, said: "Few things are more likely to make people want to move than being cooped up in the same four walls for weeks on end, and property portals have seen traffic increase by up to a fifth."

Personal Finance and Consumer Affairs Analyst Kevin Peachey comments:

This announcement will test the housing sector's hope, and belief, that a wave of pent-up demand amongst buyers and renters is ready to be released. Yet, the reality is that many people's finances are now less secure than they were just a few months ago when they were preparing to move. Expect a lot more haggling over price from both sides if they have yet to have formally agreed what they will pay or accept, especially if getting a mortgage is harder.

Estate agent Savills has already suggested that people who still have money to look for somewhere new, may now be rethinking their priorities. A spare room and good Wi-Fi may suddenly have become more appealing when working from home, and a large garden may be even more of a golden ticket for anyone with children.

Building restart

The government has also outlined other measures to get the house building sector moving, including:

Allowing builders to agree more flexible working hours with their local council, such as staggering arrival times to ease pressure on public transport
Enabling local councils and developers to publicise planning applications through social media, instead of having to rely on posters and leaflets
Providing support for smaller developers by allowing them to defer payments to local councils to ease cash flow
The new guidance includes the permission for trades people to operate in homes, providing they follow social distancing advice.

Stewart Baseley, executive chairman of the Home Builders Federation, said: "A resumption of work will play a major part in helping the economy recover, as well as delivering the homes the country needs. It should also provide the supply chain with the confidence it needs to accelerate its own restart."

I will keep a careful watch on how the market performs over the next eight weeks. After the hiatus of the lockdown, the next few weeks’ sales performance for new home developments will dictate how confident we can be moving forward. This confidence will be influenced by potential market values and sales rates. I will be keeping up to date with market conditions and changes as the picture develops.

Now is a Great Time to Review and Update Your Marketing Strategy

Wed, 29 Apr 2020 15:24:13 GMT

Websites, Digital and Estate Agents

Whilst we are in this period of enforced “lockdown” it gives business owners time to look at all those areas of the business that are on the to-do-lists for far too long.

In a recent Zoopla article, they state that some 373,000 property sales are on hold owing to the coronavirus lockdown, analysis of the housing market in UK cities suggests. The value of held sales totals a collective £82bn.

Agreed sales were running at a tenth of the normal level for the time of year and were akin to the activity seen in late December, they said.

Spring is usually a busy time for the housing and mortgage markets. It is known in the trade as the "spring bounce". However, the stay-at-home message from the government has meant that people are only moving to new homes in rare circumstances, such as entering a vacant property.

Government advice is for sellers and buyers to come to an amicable arrangement over delaying a moving date. The Zoopla report added that demand for housing was down 60% on levels recorded at the start of March. However, the picture varied across UK cities, with Cardiff recording an 80% drop in demand from buyers, and Newcastle a 48% fall. The housing market could take some time to recover

"Some may feel the urge to move and find more space or consider the potential for remote working," said Richard Donnell, director of research and insight at Zoopla. "This could boost activity in the second half of 2020, but this all depends upon how much the economy is impacted over the rest of the year and the impact on levels of unemployment."

Overall, Zoopla expects the number of completed sales across the UK this year to be around half that seen in 2019.

Making the most of the additional time on our hands.

Websites

Have you had a really detailed look at your website recently?
Is it fully responsive i.e. have you looked at it on a PC/Mac, phone and tablet?
Is it up to date with all your current/future developments?
Do all the links work?
Do all your photos have alt text?
Are your brochure easily accessible and easy to open?
When did you last review the SEO behind every page?
Are you happy with the navigation- can you find your way back to the navigation sections easily?

Social Media Platforms

What is your level of Social Media exposure?
Basics should include Facebook, Twitter, LinkedIn and Instagram.
Have you considered a Blog?
How frequently do you post on your Social Media?

Relationships with Estate Agents

Are you satisfied with the level of service and Sales you receive?
Are the key members of staff the ones you want to deal with?
Are you happy with the site staff?
How often do you “Mystery Shop” the agents either by phone or site visits?

Marketing Material and Signage

When did you last review the style and format of your brochures?
Is your digital offer as strong as your hard copy information?
Have you looked at the competition’s material?
Is your signage updated, clear and has a call to action?

If you have any queries or would like to discuss any marketing issues or any problems relating to your Agents of Sales staff please give me a call on 07973 886609.

Supporting The Brightwell- MS Therapy Centre

Mon, 20 Apr 2020 14:27:37 GMT

Follow the Brightwell's new LinkedIn page

As many of you may know, my wife Caroline, has Secondary Progressive MS. She is fortunate that her cognitive skills and speech are not affected, and she works full-time. Sadly, she is in a wheelchair full-time.

Obviously, our life is very different from the plans we had, but life goes on and we both always try and have a positive and resolute approach to living with this condition.

There is no cure or treatment for this type of MS However, we receive a massive amount of help, support and Caz has physio treatment from The Brightwell, an MS therapy Centre based in North Bristol.

This is a charity and receives no NHS nor government funding. As well as being a supporter, I also help Caz as a volunteer fundraiser. One of her current tasks is to develop and promote awareness through a new Linked In page. The short-term aim is to get 200 followers- please can you help?

Please can you follow The Brightwell’s page https://www.linkedin.com/company/the-brightwell/

Thank you very much indeed.

Coronavirus and mortgage payment holidays Information

Sat, 18 Apr 2020 10:02:14 GMT

Understanding the possibility of a three-month payment break

For many the biggest financial outgoing will be your monthly mortgage payments. If you’re struggling financially due to the coronavirus crisis you may have welcomed the recent promise by the Chancellor to implement payment holidays of up to three months for those who are struggling financially.

The mortgage payment holiday will provide flexibility in repaying your mortgage by allowing you to stop or reduce your monthly payments for up to three months. This won’t be suitable for everyone but could provide much needed help if you need it, but this won’t be free money.

The first step will be to contact your lender as not everyone will be granted a payment holiday. There will be a fast track approval process in place, so you should get a quick decision although any unpaid interest will still need to be paid back, individual credit ratings should not be affected.

It’s likely the lender will spread your outstanding payments over the outstanding term of your mortgage, so you will see an increase in your monthly mortgage payments. The shorter the term left on your mortgage, the larger the increase in your monthly payments, once the mortgage payment holiday is over. You should consider the impact this will have on your future financial commitments.

It’s possible some lenders will consider increasing the length of your mortgage term to help mitigate this. In any case you should speak to your lender or mortgage adviser and ask them to provide an explanation of what this will mean for you and understand any other options which may be available to you..

The link below from the Money Advice Service is very useful www.moneyadviceservice.org.uk/en/articles/mortgage-payment-holidays#coronavirus-and-mortgage-payment-holidays

/mortgage-payment-holidays#coronavirus-and-mortgage-payment-holidays

Coronavirus: how you can still buy and sell your home

Mon, 13 Apr 2020 13:47:44 GMT

Lawyers, developers and estate agents are working hard to keep the cogs turning as efficiently and safely as possible during the coronavirus lockdown.

Adapted from a Zoopla article by Nicky Burridge April 2020

We may all be following social distancing rules under the coronavirus lockdown but that does not mean your property search or home sale is completely on hold. Zoopla figures show that property sales are continuing since the start of coronavirus restrictions, although at lower levels, and sellers have not taken their properties off the market.

The number of homes for sale - per estate agent - is only 1% lower than it was on 7 March. But the number of new property sales agreed in the UK has fallen by 70% since the start of the coronavirus restrictions.

Zoopla director Richard Donnell says: "There has been no mass withdrawal of homes from the market as agents and consumers adopt a wait-and-see approach., The closure of estate agency branches and general uncertainty has resulted in far fewer sales agreed in the last two with less new supply coming to the market."

The number of people wanting to find out more about properties or to view them started to decline in early March and dropped by more than 60% in the following month. But in the second week of lockdown there has been a rise in people browsing properties. When you're stuck in a home you've outgrown, trying to work remotely while entertaining energetic children, that's exactly the time you decide you really need to make plans to move.

Unprecedented times - but temporary

"The property market has not been forced to an immediate halt – we must remember Covid-19 is temporary and we will recover," says Amy Hazelton, senior paralegal at law firm Blake Morgan.

"We may even see the market recover with first-time buyers who realise they need their own space after being locked down with family or flatmates. People have extra time to sit and trawl through agents' sites. They may think about a move they have not had the time to consider before and some may even spend the time considering investment opportunities in the market."

Should I keep my home on the market?

It's really not such a bad time to be selling your home. With the majority of people stuck at home without much to do, many would-be house hunters are spending their time browsing for a new home online. So, if your home is already on the market there is no reason to withdraw it. It's also worth noting that the government has not banned property transactions from going through. Instead, it has said that if the property being bought is empty, the sale can continue as normal. It is only if the property is currently occupied that it is encouraging people involved in the transaction to agree an alternative date on which to move.

Can estate agents take on new listings?

Their physical offices may be shut but estate agents are still open for business, albeit working remotely from home. That said, it is difficult for them to take on new properties at the moment, as the current social distancing rules mean they cannot visit your home to take photographs and measurements for the listing details. But don’t let that put you off if you're thinking of selling your home. Estate agents will still be able to talk to you by telephone to advise you on how much they may list your property for, subject to a physical viewing once restrictions are lifted, and to give you an idea of the market in your area. They are also likely to be having similar conversations with potential buyers, so they may be able to line up some interested parties to view your home once the lockdown is over.

Can people still view my home?

Assuming your home is already listed with an estate agency, they can continue to market it, but potential buyers won’t be able to view it in person until the current social distancing measures are lifted. That said, people can still get an excellent sense of what your home is like through doing a virtual tour. Some estate agents created these tours using 3D cameras to offer a high-definition, 360 degree walk-throughs of their clients’ properties before the lockdown came into force.

Andy Marshall, our chief commercial officer at Zoopla, says: "We have seen an upsurge of 215 per cent in virtual viewings of new-builds. While this is partly in response to coronavirus, we anticipate that online and virtual tours are quickly becoming the new normal. Online viewings afford convenience and flexibility."

What if someone makes an offer?

If you receive an offer, there is nothing to stop you negotiating and accepting it. But you do need to be mindful that the selling process is likely to take longer than usual. The government has advised people to delay exchanging contracts while the current lockdown measures are in place. Your buyer may also face delays in having a survey done on the property, as surveyors have been told not to carry out non-urgent work.

The lawyer's view on the timeline of buying and selling during lockdown

Amy Hazelton is senior paralegal in the new homes team at law firm Blake Morgan explains "Depending on the stage in your transaction, going ahead with a purchase may now mean you have to travel along a slightly different route than initially planned. In cases where contracts have not yet been exchanged, buyer and seller should try and agree delay clauses to allow for Covid-19 provisions to protect them both. You may encounter other blockers along the way towards exchange as a result of local authority closures, search provider delays and getting physical signature and witnessing of documents, due to social distancing and travel restriction guidelines. Some of these problems (especially with searches) can be overcome by specialist insurance. Others (such as signature) may need alternative arrangements to be agreed between the buyer and seller. If a buyer is between exchange and completion, all parties are still legally bound to proceed to avoid being in breach of contract and having financial penalties imposed. Where possible, completions should be delayed in accordance with the UK government guidelines to 'stay indoors' but, for some, completion may be unavoidable. Matters are likely to become more complicated where there is a chain and there are more parties to juggle.

"Lawyers throughout the country are working together in drafting solutions to help the market keep moving and this includes the certainty of exchanges taking place whilst keeping the flexibility to ensure no one is forced to complete against their will. Buyers and sellers should stay in regular contact with all parties involved."

What if I want to buy a new home?

If you want to buy a new home, there are still plenty of things you can do to kick-start your search while in lockdown. You can use the time to browse homes online that estate agents already have on their books, to give you a sense of what is out there, while many properties also have virtual tours you can take. You can also do research on the areas you're interested in. For example, our site offers a number of tools enabling you to check out the local area, even journey times if you'll be commuting.

Estate agents are still working, so even though you can’t visit them in their offices, it is still worth ringing them for a chat about the type of property you're looking for, as they may have someone waiting to list as soon as the restrictions are listed.

If you do find a property that seems perfect, you can put in an offer for it, although as explained above, the conveyancing process is likely to be slower than usual.

Top 3 takeaways

1. If your home is currently for sale, there is no reason to withdraw it and your estate agent can continue to market it

2. Estate agents cannot take on new listings, but if you are interested in selling your home, they can advise you on getting your property ready to market

3. Potential buyers cannot physically view your home while social distancing measures are in place, but many estate agents are offering virtual tours instead.

Welcome to my Blog!

Fri, 10 Apr 2020 15:17:53 GMT

Welcome to my new blog! I'll be posting reduce news and updates, which I hope you will find relevant and interesting.