Rightmove update on current market conditions and prices in Welling - November 2017

With last week's Budget announcement about the amendment to Stamp Duty for first time buyers up to the £300,000 mark there was an unusual positive surrounding the housing market. 

Sadly in the latter part of this year there seems to have been a lot of pessimism in general, and a lot of people appear to hold off moving, although what they are holding off for, and how long this will be, is unknown. 

At some point the corner will turn, and the market will improve. But Stamp Duty or not, that isn't now likely to be until January given the seasonal slowdown towards Christmas. 

A small positive on Stamp Duty should be applauded, but there were still some negative comments about it therefore pushing house prices up, largely from those that can't afford to buy a house of course.

In my opinion this is unlikely to be a direct influence as no vendor should suddenly decide to add another 10-20k to their asking price if they expect anything other than disappointment, but if demand suddenly improves as a result, then I suppose it could lead to Open Days and bidding wars which were very regular in the first quarter of 2017, but haven't been heard of since. 

So what is the latest in Welling?

Well, first and foremost, there is hardly anything available! This makes it even more surprising that what is on the market isn't moving, and so many properties across the board need to bed reduced in price before they finally sell, or the owner gives up and withdraws it until next year. 

In the month of October there were only 59 new properties put on the market in Welling, DA16. The lowest all year. You would generally expect that with less properties available, there would be greater competition amongst those that are, but as buyer numbers are also down, it all balances out. 

Despite a lack of supply in DA16, the market is still tough. Figures, Rightmove, October 2017

And in September there were only 61 new properties, as opposed to 80 odd in August. 

Less houses for people to buy, means less motivation to flat owners to put their property on the market in order to upsize, and as a result, amongst those 59 and 61 properties in the last two months, only 15 of them were flats (only 12 if taking out retirement flats). 

In short, if you are looking to buy a flat at the moment, good luck! Slim pickings. 

And that is why the negativity from some over the Stamp Duty amendment is even more baffling. Because at the moment you can get a "bargain". 

Whereas at the start of the year people were getting in to bidding wars and having to offer asking price, or even above, to secure the property they wanted, now you can make an offer 5/10/15k below asking price and have a pretty good chance of it being accepted. 

So if you are a first time buyer, moving from flat to house, upsizing from two bed to four bed, then all of the signs remain positive. There isn't much choice, but it makes sense to make the move. The only people it seems better to hold off for are the downsizers. 

If you feel like moving, or need to move, my suggestion would be that you still do so and take advantage. And if you are a vendor, remember, what you get for your property on its own is an irrelevance if you are then buying another, its one figure in relation to the other that really matters. 

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Budget 2017 - Stamp Duty changes, how will they impact on you and the Welling Property Market

Well I wasn't expecting that!

In the Budget report of Wednesday 22nd November Chancellor Philip Hammond made the announcement that with immediate effect Stamp Duty for first time buyers would be removed for anyone purchasing up to £300,000.

Whatsmore, if purchasing between £300,000 and £500,000, the first £300,000 would be exempt from Stamp Duty, again, only for first time buyers. 

This is great news for the lower end of the housing market, and for young first-time buyers so reliant on the Bank of Mum and Dad to fund their first step on to the housing ladder. 

But its bigger than that.

This will have a positive impact on the middle of the housing market. With first time buyers getting assistance on to the ladder, those looking to make a second step, from flat to house maybe, will have more potential buyers for their property, and find moving upwards easier. In turn, those looking to move from small house to large, or even retired people looking to downsize from house to bungalow, will find more activity below them, and more potential buyers for your property can never be a bad thing. 

In short, the more people getting on to the ladder, the more activity you are likely to see in general, so if you own a home already, this is good news. 

Will prices go up?

More buyers, and more activity, could in theory mean higher prices. But lets be realistic, it won't have an instant impact. What is more likely to assist in the short-term is a good news story about the housing market, it is just frustrating that the news has come at a time when we slow down until Christmas. A big January re-annoucement would be very welcome. It's a small step given the Stamp Duty amount in question is relatively low, especially with deposit requirements still being so high, but any step, small or otherwise, in the right direction is a good thing. 

Don’t forget to visit the links below to view back dated deals and Welling Property News.

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How will Tenant Fees being banned affect the Welling Property Market?

Another week has ticked by and the fallout from the banning of Tenant Fees has calmed down a little. 

Many property owners and landlords in Welling have been asking my opinion on how I think the news from the Chancellor in his Autumn Statement will influence rents in the local area, and you can read my personal opinion in my last piece here.

As you'll have read, I am against it, and so are 99% of the estate agency industry, with most preferring a cap rather than an outright ban. But everyone has a different opinion, so what are others saying? I collect some of their thoughts below.

The online agent

Upad are a large online only agent, mainly dealing with rental stock. So what do they, and specifically their owner, have to say? Bizarrely they are in favour of the ban? And the CEO's comments make it sound like good news for tenants. I guess only time will serve to prove that that is likely to be incorrect based on the thoughts of the 99% mentioned above. Their doesn't appear a comment relating to how it will affect their client the landlord though, just something from the tenants side of the fence. Their initial piece can be found here and then their follow up can be found here ... generalising what I and my industry colleagues do considerably I might add ... here.

The Welling Landlord

Nathan Hewish, one of our bigger landlords at Danson, and a local resident, gives you his thoughts here.

and if its all getting a bit much for you?

YourBuy2Let.com give a very brief and simple overview of what might happen here.

So there we have it. You know my views, but what are yours? Feel free to comment below.

If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.

Email me on kevin@dansonpropertyservices.com or call on 020 3397 4499. If you are in the area, feel free to pop into the office – we are based on 116 High Street, Welling, Kent, DA16 1TJ. There is plenty of parking and the kettle is always on.

Don’t forget to visit the links below to view back dated deals and Welling Property News.

Follow The Buy-To-Let Property Investment Market in Welling

Welling Property Market LinkedIn Page

Danson Property Services Welling Facebook Page

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Welling Investment Property Specialist Danson Property Services Website

Find out how much is your Welling home worth. Click here for your FREE Instant Online Valuation

A Welling Landlords view on the banning of Tenant Fees

Welling resident and local landlord Nathan Hewish, and customer of ours at Danson Property Services, gives his opinion on the banning of fees to tenants.

"Unless you are a Letting Agent, you're probably wondering what all the fuss is about. Less Letting Agent fees means less money needed to rent a property, it's obvious, isn't it?

Here's my take on the situation. From a private Landlord's perspective the BTL (Buy To Let) sector of the residential housing market has taken an unprecedented battering over the past two years. Lending criteria are stricter than they have ever been in the form of the Mortgage Market Review and this will worsen in 2017. Also, the amount of legislation has increased ten fold with things like Deposit Protection Schemes for tenants, legionella safety checks, carbon monoxide checks, right to rent checks, just to name a few. But the most memorable for myself is a strange, almost illegal, tax system that was introduced by the now defunct Chancellor George Osborne. 

So, what do the changes I've mentioned mean to the average private landlord? More money and more time will be needed to service their existing rental properties. If you're not a private landlord and you or someone you know is affected by housing issues such as high prices or lack of housing stock, you probably think that hammering landlords and letting agents is a good thing. However, all it will do is reduce housing stock in the PRS (private rented sector) pushing up demand for housing, and prices will rise further. How do I know this? I've either sold or am in the process of selling half of my BTL portfolio to date. Good riddance I hear you say? Well not really because the reality is 80% of the properties have gone to first time buyers and the other 20% to BTL landlords, therefore leaving only a fraction of the property sold available for the PRS. Tenants locally now have less potential property to rent because of my exit from the industry, and if other landlords do as I do, tenants will have even less choice. 

Who ultimately suffers now? The prospective tenants looking for somewhere to rent will suffer the most. So, in hindsight George Osborne et al's reforms will end up affecting the people they were trying to protect.

So, in conclusion the introduction of banning tenant fees will indirectly fall back onto the tenants over time, as landlords are forced to increase rents to pay the potential increased fees of some Letting Agents, because I doubt Letting Agents will work six days a week for less money. So there you go, less Letting Agent fees to the tenant will not necessarily result in less money needed to rent a property."

If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.

Email me on kevin@dansonpropertyservices.com or call on 020 3397 4499. If you are in the area, feel free to pop into the office – we are based on 116 High Street, Welling, Kent, DA16 1TJ. There is plenty of parking and the kettle is always on.

Don’t forget to visit the links below to view back dated deals and Welling Property News.

Follow The Buy-To-Let Property Investment Market in Welling

Welling Property Market LinkedIn Page

Danson Property Services Welling Facebook Page

Danson Property Services Welling Twitter Page

Welling Investment Property Specialist Danson Property Services Website

Find out how much is your Welling home worth. Click here for your FREE Instant Online Valuation

Tenant Fees Banned - The Fallout for Welling Landlords

Earlier this week the Chancellor Philip Hammond announced in his Autumn Statement that fees charged to tenants by Letting Agents were to be banned (although when this will take effect from was not disclosed). This had been actioned in Scotland in 2012 and was considered to have been a success (questionable at best, do read on). 

The fallout on this issue within the industry, and amongst the campaigners looking for the ban in the first place, has been considerable, but why is it so important? and why will it have wider implications than just to the tenant who will now "save money"?

Let us bear in mind that the main parties wanting this ban were tenants and charity/housing organisations, and their voices were shouting louder than the lettings agents and landlords. 

Almost everyone I have spoken to within the industry, be it agent, journalist, trainer or service provider, has been against it. Now you might expect that, given that agents can no longer make what is often wrongly perceived as a nice little earner with so many believing it is little more than an extra "tax" to tenants, but the issue is so much bigger than that. 

I'm not happy about it, and this is why.

Most agents try to do things properly, and charge reasonably for their work. Not all admittedly, even in my private rental arrangements in recent years I have had to pay out what I consider excessive amounts. My view, and therefore that of the company I run, is not to charge to excess first time around, given that if you alienate a customer first time around by overcharging, you aren't likely to see that customer again in the future. As a smaller independent business, and someone who lives locally, and buying, selling or renting property is a basic human requirement never likely to disappear, repeat custom is encouraged for us to help us grow. Our approach is therefore to be reasonable, and to look medium/long term rather than grab every penny now.

Our tenant admin fees, or however you care to word them, are the lowest in town. 

But sadly, estate agents in general don't have a good image, some agents give us a bad name and the minority ruin it for the majority. The issue of tenant fees is no different. That's why the ban is here basically, because a minority of people have been taking the mickey, and now we must all suffer. And by all I mean YOU, not just myself and my colleagues. 

And that is because whether you are a tenant or a landlord you will suffer financially as a result of this pending legislation. 

If you are a tenant, you might save a small amount in up front fees now admittedly, but if that impacts on higher rents on a monthly basis then over the term of your tenancy you are likely to be worse off in the long run. How so? Well the loss of income from an agent in tenant fees is more than likely to be passed to landlords by the majority of businesses, and therefore the landlord, already being hit by tax law changes in the last 12-18 months hitting their profit margins, are probably going to be of the opinion that rents must go up. 

Alternatively, your landlord might decide that with all these changes in the rules, that being a landlord isn't so profitable any more, and will sell up. The reduction in supply to the market will mean more competition for the remaining properties, and as with any supply and demand situation, that is only going to drive prices one way.

If you are a landlord this will absolutely effect you within the next 12 months when you are next looking for a tenant. Why? because when we ask a tenant for a holding fee on a property, we are securing their commitment that they will not change their mind. We are safeguarding against the time wasters, the mind changers and the referencing failures. That inability now to take a holding fee from a tenant which they risk losing, means the tyre-kickers messing agents and landlords around will have free rein, and that isn't good for landlord, agent, or serious tenant. 

More wasted time by me and my staff, and you the landlord, and less security by way of a financial commitment from the tenant, will increase risk that you have a void period, or there are delays, or additional work from referencing numerous tenants to safeguard against a potential failure. And this all costs time and money, and if the tenant isn't paying, who is?

Agents still have a business to run, and costs to pay, so if the cost isn't being partly covered by the tenant, where will it be made up? Would that be in the agent raising their fees chargeable to landlords - not likely, that won't go down well. Or will the agent suffer the loss, but then will that effect service levels, or lead to corner cutting, and neither of those are sensible either. It's a problem waiting to happen. 

Rents WILL GO UP

The harsh reality is that landlords WILL increase rents, not instantly, but inevitably. Combined with the other changes in legislation in recent years landlords are not making the money they used to, and whilst you might not like to hear it, 99% of landlords do so to make money. They don't rent you their property out of kindness! and another issue working against them might mean that £50pcm goes on the bottom line, and that over the term of a tenancy is a lot more than the agency fees up front would have been to the tenant. 

Why not regulation rather than a ban?

This all stems from what I consider poor regulation. The laws for estate and lettings agencies are infinitely better than they were when I started 11 years ago, but there are still huge gaps and/or loopholes that sadly some types of people will look to exploit.

Hearing stories of people being charged £25 for a photocopy of a tenancy agreement, £90 for the privilege of moving in on a weekend, or £100's for referencing, guarantors, check-ins etc etc, especially in London, it isn't difficult to see why there is a problem.

But for me the solution is a capping of charges, and not a removal of them. For, as mentioned above, without a fair and reasonable charge, I will undoubtedly have my time wasted, and ultimately that will cost a landlord and a vendor somewhere down the line - and most probably a lot of tenants too.

If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.

Email me on kevin@dansonpropertyservices.com or call on 020 3397 4499. If you are in the area, feel free to pop into the office – we are based on 116 High Street, Welling, Kent, DA16 1TJ. There is plenty of parking and the kettle is always on.

Don’t forget to visit the links below to view back dated deals and Welling Property News.

Follow The Buy-To-Let Property Investment Market in Welling

Welling Property Market LinkedIn Page

Danson Property Services Welling Facebook Page

Danson Property Services Welling Twitter Page

Welling Investment Property Specialist Danson Property Services Website

Find out how much is your Welling home worth. Click here for your FREE Instant Online Valuation