×

Tag: Maidstone

November property market update

Posted on by Sophie Winter

The November property market sees a 1.4% drop in the average asking price for new sellers according to the latest Rightmove House Price Index, equating to a £5,366 reduction, bringing the figure to £366,592. This decline exceeds the typical seasonal drop of 0.8% and reflects both pre- and post-Budget uncertainties. However, Bank Rate cuts have injected optimism into the market for 2025, even as the Budget pause temporarily dampens activity.

Key highlights

Asking Price Trends:

  • The average new seller asking price fell 1.4% this month, marking the second consecutive month of larger-than-normal seasonal declines.
  • This drop is attributed to reduced confidence following the Budget, with higher stamp duty charges affecting many home-movers, second-home buyers, and some first-time buyers.

Sales and New Listings:

  • Sales agreed are up by 26% compared to the same period in 2023, showing resilience despite market challenges.
  • The number of new sellers entering the market is also 6% higher than the same time last year, a sign of increasing market activity.

Impact of Bank Rate Cuts:

  • Rightmove’s data highlights early signs of renewed buyer interest following the second Bank Rate cut.
  • Buyer demand initially dropped from +23% to +18% after the Budget but has now returned to +23%.
  • Seasonal slowdowns are still anticipated as Christmas approaches, but the overall outlook for 2025 remains positive.
Image from Rightmove November House Price Index

2025 forecast: a stronger market expected

Rightmove predicts a 4% increase in average asking prices in 2025, the highest forecast since 2021. Lower mortgage rates are expected to unlock pent-up demand, applying modest upward pressure on prices. However, seller competition remains fierce, with the average number of homes per estate agent branch at its highest level for this time of year since 2014. Sellers will need to balance pricing strategy and presentation to attract affordability-stretched buyers.

Challenges for Sellers

  • Price Sensitivity: Buyers continue to face affordability challenges, particularly with slower-paced Bank Rate cuts delaying significant mortgage relief.
  • High Competition: The market is inundated with listings, making it critical for sellers to price competitively and offer well-presented homes to stand out.

Expert opinions

Tim Bannister, Director of Property Science at Rightmove, notes:

“The market is in a better place than last year, despite the Budget’s impact. Average asking prices are up 1.2% year-on-year, aligning with our 1% increase forecast for 2024. Looking ahead, 2025 shows promise as falling mortgage rates could drive affordability improvements, though sellers must remain pragmatic about pricing in a competitive market.”

Other experts suggest the current period offers a unique opportunity for buyers to negotiate, with flexibility likely to wane in January as activity surges post-Christmas.

Market outlook

Despite the short-term impact of the Budget, the November property market remains resilient, bolstered by optimism surrounding 2025. Lower mortgage rates, combined with sustained demand and strategic selling, are expected to shape a more positive landscape for both buyers and sellers in the year ahead.

Curious about your property’s value?

Find out today with a free online property valuation or call our team on 01634 570057.

Recent Articles

Autumn Budget 2024: What Labour’s new policies mean for homeowners, buyers, and the property market

Posted on by Sophie Winter

Today’s Autumn Budget 2024, delivered by Labour, has introduced several bold changes that will impact the housing market and, more broadly, the property landscape in the UK. With a strong emphasis on addressing housing supply, improving affordability, and enhancing tenants’ rights, this budget brings both challenges and opportunities for homeowners, buyers and investors. Let’s take a closer look at the key announcements from the Autumn Budget 2024 and how they could shape the property market.

Second home Stamp Duty rises from 3% to 5%

Starting tomorrow, buyers purchasing a second home will see a significant change in stamp duty, with an increase from 3% to 5% on the entire property’s value. This adjustment means that anyone buying a second property, such as a holiday home or investment property, will now need to pay an additional 2% on top of the standard stamp duty.

Currently, the second-home stamp duty surcharge is 3%, which is applied to the entire property value in addition to the regular stamp duty rates. But with this change, the surcharge will jump to 5% as of tomorrow.

How the Stamp Duty increase works

For instance, if you’re purchasing an investment property worth £500,000, the stamp duty would now amount to £37,500, calculated as follows:

  • 0% on the first £250,000 = £0 in stamp duty
  • 5% on the portion from £250,000 to £500,000 = £12,500
  • 5% surcharge on the entire property value = £25,000

This brings the total stamp duty for a £500,000 second home to £37,500. By comparison, buying the same property today would incur a total stamp duty bill of £27,500.

Chancellor Rachel Reeves explained that this increase is intended to support more first-time buyers and those looking to move homes by easing some competition from investors in the housing market. Current reliefs for first-time buyers and home movers remain unchanged.

Stamp Duty relief for first-time buyers and home movers continues

The Autumn Budget confirms that first-time buyers will continue to benefit from an elevated stamp duty threshold. This allows first-time buyers to pay no stamp duty on properties priced up to £425,000. For properties valued between £425,000 and £625,000, a 5% stamp duty applies to the portion above £425,000. Properties exceeding £625,000, standard rates apply.

For home movers—those selling one home to purchase another—the stamp duty threshold of £250,000 remains intact. Here’s how the rates break down:

  • 0% on the first £250,000 of a property’s price
  • 5% on the portion between £250,000 and £925,000
  • 10% on the portion from £925,000 to £1.5 million
  • 12% on the portion above £1.5 million

For a clear estimate of your potential stamp duty costs, use our partnered mortgage brokers Stamp Duty Calculator.

Increased Capital Gains Tax rates for second homes

The Chancellor also announced an increase in Capital Gains Tax (CGT) rates. Which impacts profits made from selling assets such as second homes. The CGT rate for lower-rate taxpayers (those earning under £50,270 annually) will rise from 10% to 18%. And for higher-rate taxpayers (earning over £50,270) from 20% to 24%.

For example, if you bought a second home for £500,000 and later sold it for £600,000, the capital gains tax would now be:

  • £18,000 for lower-rate taxpayers (up from £10,000)
  • £24,000 for higher-rate taxpayers (up from £20,000)

Although Rachel Reeves highlighted that this rate remains the lowest among European G7 countries, this increase may discourage property investors. With 12.5% of properties on the market currently former rental homes, the shift could lead to reduced rental supply, intensifying competition for rental properties and potentially driving up rental prices.

Inheritance Tax rules for property held until 2030

The Budget also extended current inheritance tax rules on property through 2030, maintaining the tax-free threshold at £325,000. For direct descendants, this allowance increases to £500,000, and to £1 million for properties passed to a spouse and then inherited by children or grandchildren. However, new rules coming in 2027 will include unused pension funds and death benefits within an estate’s value for inheritance tax.

What now?

The Autumn Budget brings significant changes for property investors and second-home buyers. With impacts likely to be felt across the rental market as well. First-time buyers and home movers can still benefit from current reliefs, but potential investors may approach future transactions with greater caution as these tax changes take effect. For more information, please contact us on 01634 570057.

Recent Articles

Are you concerned about what the Renters’ Rights Bill could mean for you?

Posted on by Sophie Winter

Halloween may be just around the corner, but for landlords, the real scares come from compliance risks and the major changes pending with the Renters’ Rights Bill. This reform represents a large shift in the private rental sector (PRS) and introduces new compliance requirements for landlords.

Here at CR Real Estate, we understand the pressures property owners face. Our tailored lettings and property management packages offer comprehensive solutions to help you navigate this challenging landscape, from tenant management to rigorous compliance checks. Here’s a breakdown of the key changes and how they could affect you.

Abolishing ‘no-fault’ evictions and the end of fixed-term tenancies

The Bill proposes eliminating Section 21 “no-fault” evictions and fixed-term tenancies, establishing a single system of rolling, monthly agreements for all assured tenancies. This means tenants will have greater stability, but landlords will retain rights to reclaim properties if they need to sell or move in themselves. Although this shift promotes tenant security, it may affect a landlord’s flexibility in regaining control over their property.

At CR Real Estate, our compliance packages ensure you stay informed and supported throughout this change, with updated protocols for tenant communications and handling possession grounds effectively.

New grounds for repossession

The new legislation creates expanded grounds for possession, allowing landlords to reclaim properties if they or a family member intend to live in them, or if they wish to sell. However, restrictions apply: landlords cannot initiate possession in the first year of a tenancy, and if they use this option, they are prohibited from re-letting or re-marketing the property within 12 months.

We support landlords with clear, compliant processes to regain properties when necessary, ensuring a smooth transition under these new possession grounds.

Meeting the Decent Homes Standard

The Bill extends the Decent Homes Standard to the private sector, with a special emphasis on remedying hazards like damp and mold, enforced under “Awaab’s Law.” This law ensures that landlords act promptly on dangerous conditions, with failure to do so resulting in enforceable penalties.

Our property management teams are compliance experts and are here to help landlords in achieving and maintaining these standards, identifying issues early to prevent long-term damage or tenant complaints, ensuring your properties remain safe and compliant.

Non-discrimination policies and renting to tenants with pets

The Bill makes it illegal for landlords to discriminate against tenants based on factors like benefits or family status. And it includes new measures allowing tenants to request pets in their rentals. Landlords may request insurance to cover any potential pet-related damages, balancing tenant rights with property protection.

Our experts ensure landlords follow non-discrimination policies, with guidance on fair tenant selection and requirements for pet accommodations, so landlords can confidently let their properties in line with the new laws.

New digital private rented sector database

A key change is the establishment of a national PRS database to record and track landlord compliance. This online registry will list all residential landlords and their compliance documentation, including certifications like gas safety records. Properties not registered in this database will be restricted from legal advertising or letting, with significant fines for non-compliance.

At CR Real Estate, we handle all registration and documentation for you. Ensuring that your entries are always updated and valid, protecting your ability to rent and advertise your properties.

Strengthening local councils and financial penalties for non-compliance

The Bill grants local councils greater power to enforce compliance and introduces financial penalties for non-compliant landlords, with fines reaching up to £40,000. This includes penalties for landlords who fail to join the new PRS Ombudsman service, which will mediate disputes and enforce fair treatment across the sector.

Increased transparency and accountability

Transparency is a recurring theme in the Renters’ Rights Bill. It requires landlords to provide a written statement of terms and clearly communicate rent increases. Which will now be capped at market rates and limited to annual adjustments. Tenants will also have the right to challenge any increase they believe exceeds market value. Additionally, landlords must now avoid rental bidding wars and stick to advertised prices.

To help landlords, CR Real Estate offers full compliance with these transparency requirements. Ensuring that all rental agreements are clear and meet legal standards, protecting both landlords and tenants.

CR Real Estate: your trusted partner in navigating compliance

At CR Real Estate, we understand that the Renters’ Rights Bill may create uncertainty. With our lettings and property management services, we provide a smooth, comprehensive approach to help landlords adjust. Our team manages everything from tenant communications to ongoing compliance, so you can relax while we handle the details.

Don’t let these new regulations keep you up at night. Click this link to register for more information and see how our expertise can help you stay ahead of these changes.

Recent Articles

October property market update

Posted on by Sophie Winter

This October, the average asking price for new sellers increased by a modest 0.3% (+£1,199) according to the latest Rightmove House Price Index, bringing the average price to £371,958. This rise is notably lower than the usual seasonal 1.3% increase seen in previous years, highlighting a more subdued Autumn price growth. Despite this, market activity remains strong, largely driven by an increase in buyer choice and heightened competition among sellers. In Kent, the average asking price now stands at £424,375, with annual stock levels rising by 12.7%.

Sales have surged by 29% compared to the same time last year, showing a robust recovery from the weaker market of 2023. Buyer demand continues to rise, with 17% more people contacting agents about homes for sale compared to last October. However, the number of homes available for sale is also 12% higher than last year, with stock levels per estate agent at their highest since 2014. This increased inventory is giving buyers more negotiating power, putting downward pressure on price growth.

Image from Rightmove October House Price Index

Mortgages

Affordability remains a key issue, especially with the average 5-year fixed mortgage rate now at 4.61%, a slight increase from last week’s 4.55%. Energy costs are also rising, with the average annual bill for homes rated with an Energy Performance Certificate (EPC) of D now at £2,465, up 10% since September. These factors may be causing some buyers to wait for more clarity from the Autumn Budget and potentially cheaper mortgage rates before committing.

Looking ahead, the financial markets predict two Bank Rate cuts before the end of the year, which could further improve affordability. Combined with wage growth outpacing house price growth, the outlook for 2025 remains optimistic.

With more properties on the market and stretched affordability, sellers need to price competitively to attract buyers. Despite this, strong market activity persists, with many buyers moving ahead with their plans while waiting for further economic clarity and mortgage rate reductions.

Expert opinions

Tim Bannister, Rightmove’s Director of Property Science, says:

“This month’s modest price growth reflects the increased choice for buyers, with sellers needing to price competitively in a market where affordability remains tight. We’re seeing strong sales activity, but some movers may be waiting for more certainty from the Autumn Budget and potential mortgage rate cuts.”

As we approach the end of the year, all eyes are on the Autumn Budget and its potential impact on the property market, with hopes that affordability will improve further heading into 2025.

Curious about your property’s value?

Find out today with a free online property valuation or call our team on 01634 570057.

Recent Articles

September property market update

Posted on by Sophie Winter

According to the latest Rightmove House Price Index, average asking prices for new sellers rose by 0.8% (+£2,974) in September, reaching £370,759, with the property market benefiting from a surge in activity. This price increase is double the long-term average for this time of year, reflecting pent-up buyer demand being released, leading to a 27% year-on-year rise in sales agreements.

Image from Rightmove September House Price Index

More sellers entering the property market

Rightmove’s data highlights growing confidence among homeowners, with 14% more sellers entering the market compared to last year. The number of available properties per estate agent has also reached its highest level since 2014, giving buyers more choice with an average of 33 homes per branch.

How long is it taking to find buyers?

Despite increased market activity, caution remains a buyers are price sensitive. It currently takes an average of 60 days for sellers to find buyers. This is slightly longer than last year, as value-conscious buyers take their time. Well-priced, appealing homes are likely to attract buyer interest quickly, while those that are overpriced or poorly presented may struggle to gain attention.

Mortgages

While the recent decline in mortgage rates is encouraging for buyer confidence, they remain high compared to the 2008-2022 period. Rightmove’s weekly mortgage tracker shows the average 5-year fixed rate at 4.67%, down from a peak of 6.11% in July 2023. But still nearly double the 2.34% seen three years ago before 14 consecutive Bank Rate increases. While some buyers are taking advantage of the current conditions, others may need to wait for further rate reductions and improved affordability. It is always wise to speak to a mortgage broker for guidance and advice.

Uncertainty remains, with attention focused on whether the Bank of England will implement a second consecutive rate cut this week. Looking ahead, the Autumn Statement could impact specific segments of the property market. Rightmove’s data suggests certain areas are already feeling the effects of a potential rise in capital gains tax. As a record number of former rental properties are now listed for sale, indicating more landlords are exiting the market.

Tim Bannister, Rightmove’s Director of Property Science, says:

“Early autumn movers who are acting quickly and taking advantage of the improved market conditions are getting the pick of quality homes for sale. Home-owners who are thinking of coming to market soon shouldn’t let the increased activity make them over-optimistic and must price competitively to sell. With affordability still very stretched for many, choosy buyers are taking their time to browse the increased number of homes for sale and find the perfect home at the right price. There are question marks over how the market will be affected by announcements in the Autumn Statement, but until then we expect that market momentum will continue as the autumn action rolls on.”

Curious about your property’s value?

Find out today with a free online property valuation or call our team on 01634 570057.

Recent Articles

© 2024 RHJB Ltd trading as CR Real Estate | Reg No: 10918586 | Registered Address: 18-20 High Street, Gillingham, Kent, ME7 1BB | Website Built and Powered by BoostOnline UK Group Ltd.
Boostonline Local Marketing
Book A Valuation