As we are now well in to 2021, we can see that the market has continued to thrive and prices have increased. Since the beginning of the year, new listings have slowed and sales have increased, which has been a driving factor in the surge in price increases.

So with all of this in mind, there are a few things that you should probably consider when you are buying in 2021

Less bang for your buck!

With the surge in prices in the past 18 months, the effect of the furlough scheme and job security, you may find that you really need to re-assess your affordability.

Prices have increase by 9.4%* in the past year. We have noticed that a rise in detached houses that would have been on the market a couple of years ago at around £250,000 are now at an asking price around £280,000 – £290,000. This means that the house that you had your eye on a couple of years ago is no longer viable in 2021, so it is very important to consider your budget.

*Official Rightmove data from March 2020 – March 2021 in the Yorkshire & Humber region

You also need to take different factors into account; what could happen if your hours were unexpectedly reduced, or you lost your job completely? How has the furlough scheme affected your affordability? Also, if your place of employment moved locations, or if you worked from home permanently? All would need to be considered when planning your budget.

Living (and working) Space

Living accommodation has always been important in a property search but it has become a main deciding factor, not just for the normal living arrangements, but since Covid-19 many people have been forced to work from home on kitchen tables and in spare bedrooms.

This means that you could be searching for a property where there is a space to work from comfortably.

• Ideally a study or maybe a spare bedroom would be preferable.
• Would a space under the stairs be an acceptable alternative? (although, it would probably better to have a window to look out of and some natural light, don’t underestimate the effect these can have on your mental health)
• Is there room for a cabin/summerhouse outside?
• Can you convert a garage or outbuilding?

The Great Outdoors

As we were spending weeks and months confined to our houses, we all realised the importance of outdoor space.

Space or the lack of it can be a new consideration especially since the pandemic as those spending extra time inside their flats or apartments made them realise the importance for some personal outside space.  Likewise, those that had space that was not fully utilised may feel that they want to look for something more suitable for their needs.

So, take into consideration if you would be happy with a large garden, a little garden or a courtyard garden. Also consider the orientation of the garden. It may be that you are now working from home and want morning sun in your garden to improve your work life. On the flip side, if you are working at the business premises during the day, you may well want the afternoon/evening sun in your garden so you can relax after a hard day with a glass of gin.

Location, location, location

No, we are not talking about the show with Kirsty and Phil. Location has always been an important factor in any home move. Consider where your home will be in relation to transport links, local amenities and distance to relatives and friends.

Due to the pandemic the job market is not so stable, would you be able to find a new job close to your new home?

As we mentioned above, outdoor space is important so see what you will have on your new doorstep. Is there a local park? Areas to walk with friends or your dog? Look for things that suit your lifestyle.

A helping hand

Whilst the market has soared, there have been several things that have helped buyers across the market.

Stamp Duty Holiday

Whilst the full Stamp Duty holiday has ended (30^th June 2021) it is still available for properties from £125,001 to £250,000 up until 30^th September 2021. After this point it will go back up to 2% of the difference between £125,000 and the sale price.

5% Deposits

Lower deposits have become available to a wider range of buyers, not just first-time buyers, who are purchasing a property up to £600,000 using the Government’s new 5% deposit home loan guarantee scheme.

It is helping more people become homeowners, however with any financial products always seek independent advice to ensure it is the best option for you. Click here to visit our recommended mortgage advisors website, Lincolnshire Financial Services.

Lifetime ISAs

Available for first time buyers only who are over 18 and under 40. With a lifetime ISA, you can put up to £4000 a year into the ISA and get a 25% bonus, up to a maximum of £1,000 per year is payable by the government.

If you are a couple this can be for each person too, so increasing the money payable to you and helping you even more to buy the home of your dreams.

As with the above, you need to ensure you speak to an advisor to ensure you qualify but you can find a link here for more information. We will be covering this subject in more detail in a future video blog.

Whatever property you end up buying, we wish you all the best for your new home. If we can be of assistance in selling your current home, you can call us to arrange a a time for us to provide you with free advice and valuation.

The study by Zoopla looked at all kinds of facts and figures but the one that stood out to us was that just over half of all British homeowners (52%) live in a house that doesn’t meet their needs.

We find this quite staggering really and would really like to know, if this is you, what isn’t working for you?

• The kitchen isn’t big enough to accommodate your dreams of becoming an amateur baker
• You need an extra bathroom because your daughter is now a teenager
• Your family is outgrowing the available space, or
• Your family has flown the nest and now you have too much space
• Now that you are working from home more, you really need a home office space (the dining room table just doesn’t cut it any more)

So why are people staying in properties that are unsuitable for their requirements? Naturally there are a whole host of reasons, maybe you fall in to one of these categories:

• Personal or health reasons
• Affordability
• You are so busy that they don’t stop to think about it
• You are happy in your home, even though it isn’t quite right
• You aren’t sure if you can move an don’t want to waste anyone’s time

You are never wasting our time.

We had a client recently that had a real whirlwind sale. They openly admitted that they had been thinking about moving for a couple of years but didn’t think that they would be able to move. Their hand was eventually forced when a property they loved became available, so they spoke to their mortgage advisor and had us round for a valuation and discovered that they could comfortably move.

This made us realise that there must be plenty of people out there that probably want to move but don’t know if they can but are too worried about asking for advice, just in case they can’t proceed and don’t want to waste anyone’s time.

I almost find it sad that as an industry, with so many corporate companies being target driven and pressure selling that the public are worried about calling us and wasting our time (or worried about us trying to pressure them to sell).

As an estate agent, we are here to provide you a service and one of those services is to provide you with a valuation of your most valuable asset. We (and our mortgage broker friends too) are also here to provide you with advice and assist you with your onward purchase if we can.

So, don’t sit there and put off getting your house valued because you are worried you cannot move. The worst case scenario is that you cannot move, but between us and the mortgage broker, we may well be able to give you advice on how to get yourself in a position to move in the very near future.

Of course, you may well be pleasantly surprised to find out that you are in a position to move and can start looking for your dream home.

Don’t be stuck in a house that isn’t working for you, call us, our valuations and advice are always free.

Good news today for buyers in Grimsby & Cleethorpes as Moneyfacts confirm that borrowers looking for a new mortgage deal now have the most number of deals to choose from since the pandemic began impacting the UK economy last March, as data shows that the number of deals is at an 11-month high.

The data, which is due to be released in the Moneyfacts UK Mortgage Trends Treasury Report, found that there are currently 3,215 mortgage deals available, which is the highest number since March 2020, at which point there were 5,222 deals in the market. (This information was correct as of 10^th February and can change daily)

The biggest rise in deals over the last few months can be found on mortgages that need a 10% deposit/equity, known as 90% loan-to-value (LTV) mortgages – which are predominately aimed at this market.

For the second month running, 90% LTV mortgages have seen the largest uplift in availability. These mortgages are often a hit with first-time buyers and have traditionally been seen as higher risk for providers. This is a hugely positive step by lenders and could be an indication that lenders have confidence in the sector, despite the ongoing pandemic and the economic connotations.

When looking at mortgage deals and considering options, it is important that borrowers take into account a range of factors and not just the rate. For example, product fees and incentives may make a slightly more expensive deal a more attractive offer than a lower rate on a deal that has high product fees and does not offer any incentives.

For those unsure about which deal is best for them, speaking to an independent mortgage broker, who will be able to take the borrower’s unique circumstances into consideration when suggesting deals, may be a good option.  Why not discuss your mortgage requirements with Dave Jackson of Lincolnshire Financial Services and ensure you gain enough information to decide on the best package for your personal preferences and needs?

Click here for a call back from Lincolnshire Financial Services.

Sources: Moneyfacts.co.uk, Estateagenttoday.co.uk

All information correct at time of publishing, 11th February 2021