PROPERTY UPDATE – THE THINGS WE KNOW THIS WEEK THAT WE DIDN’T LAST WEEK.

The Carlisle property market continues in it’s very healthy and buoyant state, with property flying off estate agents books in near record time. It must be noted, the current lockdown is causing a shortage in supply but the amount of buyers available outstrips the amount of properties. Basic economics shows that when demand outstrips supply, properties will sell more quickly and for a better price. I expect this to level off as restrictions are eased.

Follow the link below to see the Zoopla House Price Index Report

The rental market again is healthy, with the number of leads per property we are receiving at a record high. There is a particular shortage of 3 and 4 bed properties, so landlords, if you have a sizable family home you were contemplating letting out, get it on the market now.

So what’s been happening so far in March? These changes have national effects, not just in Carlisle..

A tapered extension to the stamp duty holiday and a government-backed mortgage guarantee scheme are among the measures aimed at helping home buyers and sellers delivered by Chancellor Rishi Sunak in the Spring 2021 Budget. 

Stamp Duty Holiday extension 

The temporary stamp duty holiday due to finish on 31st March 2021 in England has been extended by three months. 

The extension means if you are buying a home up to the value of £500,000 you will not pay any stamp duty if the purchase is completed by 30 June 2021. This is a huge relief to some very nervous buyers and will have a huge positive financial benefits to hundreds of buyers in Carlisle. The nerves of those sellers who might have lost their property sale have been eased.

Moving forward to smooth the transition back to normal, the nil rate threshold will be set at £250,000 until the end of September, before returning to the usual threshold of £125,000 on 1st October 2021.  

There are an estimated 628,000* sales in total still currently in the legal process across Great Britain, including those that were agreed last year and those that have been agreed so far this year.  *Rightmove figures as at 3rd March 2021

What is the mortgage guarantee scheme?

The government has introduced a 95 per cent loan to value (LTV) mortgage guarantee scheme to help buyers with small deposits get on the property ladder.  

Under this scheme, which launches in April 21, home buyers will be able to purchase homes priced up to £600,000 with a deposit of just 5%.  

The Treasury has said it will guarantee parts of the loans on properties worth up to £600,000 in order to encourage lenders to reintroduce low-deposit mortgages. 

Low-deposit mortgages have largely been withdrawn by lenders during the coronavirus pandemic, which meant many first-time buyers have faced raising deposits of 15-20% in order to secure a loan.  

Rishi Sunak said many of the big lenders, including Santander, Lloyds, Barclays and HSBC are backing the scheme and will be offering “government guaranteed” mortgages from next month. 

Personally I think the banks have been harsh on buyers with small deposits. Surely banks should base their lending more on affordability. How can decent hard working buyers demonstrate they have paid a £750 rent on a property for a sustained period but be refused lending where repayments on a mortgage are sometimes £300 less. It’s absurd.

Eviction Ban Extension and Extension of 6 Months’ Notice (England)

The government have announced that:

The eviction ban has been extended until the 31st May.

The requirement to serve 6 months’ notice has also been extended to the 31st May and will then be tapered off.  No details have been given as to how this ‘taper’ will take effect, with a government statement merely saying: “The government will consider the best approach to move away from emergency protections from the beginning of June, taking into account public health advice and the wider roadmap.”  The exceptions to the 6 months’ notice remain the same being, anti-social behaviour (four weeks’ notice), false statements provided by the tenant (two to four weeks’ notice), over 6 months’ accumulated rent arrears (four weeks’ notice), breach of immigration rules under the ‘Right to Rent’ policy (three months’ notice).

Please see full details at the following link: https://www.gov.uk/government/news/further-support-for-commercial-and-residential-tenants

If you have any property related questions, need advice on selling or letting, please feel free to get in touch with me on 01228 534000 or email me at carlisle@northwooduk.com

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s