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Tag: Value

Why reducing the price of your property could help you sell

Posted on by Sophie Winter

In previous years, decreasing your property’s price was viewed as unfavourable. It projected an image of desperation, potentially allowing buyers to exploit this and present unreasonably low bids. However, with the evolving property market, does this perspective still hold true?

Price reductions and the property market

Well, no not really. Since the last recession in 2008, attitudes toward reducing property prices have significantly eased. Given the dynamic nature of the property market, achieving absolute precision right from the start can be nearly impossible. Determining the appropriate market value for a property is essentially an approximation; there are no fixed guidelines or no crystal ball, just a rough estimate based on the seller’s and agent’s assessment of the property’s selling potential. Occasionally, adjustments are necessary, and in this age of technological advancement, a price reduction can, in fact, yield favorable results in your sales strategy.

It’s no longer stigmatised and won’t generate unfavourable perceptions about the property. Buyers may notice that the price has dropped; but they may view it positively, recognising your commitment to selling rather than interpreting it as a sign of desperation.

Why do some see it as a negative?

This could be down to our shift in our consumer mindset as it operates similarly when it comes to Property. Just as we’re accustomed to High Street stores frequently offering sales or shopping at designer outlets with clearly marked recommended retail prices (RRP) and discounted rates; we don’t devalue the clothing or decide against a purchase simply because no one else bought it from the original store; we merely accept it as an item we like and wish to acquire at a reduced price.

This same adjustment in our buying psychology might apply to the property market. When we encounter a property that has adjusted its pricing, we don’t automatically assume it’s inferior or that the sellers are desperate. Instead, we perceive it as a discount, a valuable opportunity. This perspective can motivate a hesitant buyer to make an offer they might not have otherwise considered. It may act as the gentle push they needed to take action.

What can a price reduction do?

Reducing the price, when required, can prove to be a beneficial strategy and may be the key to sealing the deal.

  • Revitalising the property’s marketing and promotion, including mailing campaigns and re-matching with potential buyers. This is similar to giving a post on social media a boost.
  • This approach introduces the property to a different pricing tier. Attracting a fresh set of buyers who may not have been aware of its availability, as it was previously outside their budget range.
  • For those who previously viewed the property at its higher price, the reduction might now align more closely with their perception of its value, potentially rekindling their interest.

Want to discuss your property?

A reduction in price can often unlock the path to a successful sale. Especially when your property has been listed for several months without any positive outcomes, despite all other efforts.

If you’re facing challenges in attracting viewings and are eager to sell your home, reach out to our property specialists. They can assess your marketing strategy and provide guidance to help you start receiving those coveted offers.

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How you can boost your property value by £48k

Posted on by Sophie Winter

Do you find yourself using your garage as a storage space for clutter, or does it stay empty because the idea of constantly moving your car in and out seems too bothersome?

A study conducted by Admiral Money has unveiled that up to 51% of individuals in the UK seldom or never utilise their garage for parking their cars. Instead, they tend to fill it with tools or furniture that remains unused. In fact, the total of unused garages is so substantial that Admiral’s calculations suggest that almost 600,000 homes could potentially be in the space wasted by them!

However, by dedicating some effort and resources, this overlooked space in your home has the potential to significantly enhance the value of your property. Admiral’s research also demonstrates that a simple garage conversion could incur a minimal expense, starting at £6,000 for a single garage, while a comprehensive conversion might range from £10,000 to £20,000. But the value it could add your home is much more – estimated at around £48,000!

Why are homeowners converting their garages?

Conducted using data from the ONS, this study comes during a period when individuals aspiring to live in larger homes might encounter obstacles due to escalating mortgage rates and higher housing costs. However, as stated by Admiral, opting for a garage conversion provides an alternative avenue. This allows homeowners to tailor their residences to align with their lifestyles in the aftermath of the pandemic.

The study uncovered that a majority of homeowners who undertook garage conversions did so with the aim of expanding their living area (67%). The most favored choices were utility rooms and home offices. However, 24% chose to repurpose their space for recreational purposes, opting for features such as bars, home cinemas, and gym facilities.

Converting your garage

In addition to the potential for enhancing property value, another significant advantage of transforming your garage into a room is the low likelihood of requiring planning permission and it often avoids the need for extensive structural modifications. This can make it a highly cost-effective method to expand your living space and overall square footage.

While the initial conversion expense might seem discouraging, homeowners have the option to increase the mortgage on their property for garage renovation. Recent statistics suggest that this approach could potentially increase the average property value across the UK by over £48,000 and even up to £150,000 in certain London postal areas.

Factors to consider during a garage conversion

Prior to moving forward, it’s crucial to thoroughly consider whether you, or a potential future property buyer, might require the use of your garage. This assessment is particularly relevant if you reside in an area where parking is challenging or if your driveway has space for only one car.

If you’re seeking ingenious ways to utilize the space, enlisting the help of an architect can be beneficial. The fees for professional architects and engineers can commence at £1,500 and extend up to £3,000.

According to Martin Hitchcock, an architect, the essence of a successful garage conversion lies in assessing your current home usage and contemplating potential improvements.

We’d suggested thinking about these questions prior to starting any plans:

  • Could extending an existing room into the garage prove advantageous?
  • Is it feasible to convert a portion of the garage while retaining the rest for storage purposes?
  • Do you possess alternative parking options if you proceed with the garage conversion?
  • How would your car’s placement outside a window in the converted garage impact the natural light in your new space?

Have you recently converted your garage and want to know what your property is worth?

Why not contact our expert team today to discuss your property and its new value. We can provide you with a fully detailed sales report and local comparison to show you during the valuation.

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How much is my garden land worth?

Posted on by Sophie Winter

While there are various methods available for determining the value of your home, if you have received an offer to sell a portion of your garden or are considering purchasing land from your neighbour, you may be curious about how to accurately assess its worth. In this article, we will explore the factors that come into play when dealing with the acquisition of garden land. Plus we will explain two approaches to calculating its price. Additionally, we will examine the potential implications for homeowners, including their mortgages, particularly if the plot is adjacent to their property.

Land values by area

Gov.uk, provide average land values based on local authority areas, but it is essential to note that this data is intended solely for survey purposes and should not be relied upon for commercial transactions’ valuations. The figures are primarily used for assessing public policy related to agricultural and industrial land usage across different local authorities in England. The latest available data, as of writing, is from 2019, published in August 2020.

Moreover, the Gov.uk analysis emphasizes that land value is highly sensitive to specific variations in each plot. Therefore, whether you are selling or buying a plot of land, its true value depends on several critical factors:

  1. Location
  2. Land condition
  3. Size of the existing garden (if any)
  4. Value of adjacent properties
  5. Potential for car parking on the land
  6. Scarcity of land available for sale in the area
  7. Other local competition factors.

How are mortgages affected by buying or selling garden land?

For owner-occupiers who have a mortgage and wish to sell a portion of their property’s surrounding garden land, obtaining consent from their mortgage lender is the first step, and they might need to consider remortgaging. Releasing and discharging the plot of land may require a partial repayment of the initial amount borrowed (capital sum) to the bank, building society, or mortgage lender. Similarly, if you plan to expand the size of your property’s land by purchasing adjacent land, it’s crucial to inform your mortgage provider. Especially if you intend to include the purchase price in your existing mortgage.

Ways to value garden land

When it comes to valuing garden land, there are generally two main approaches. The first method is the comparable method. This involves examining sales of similar plots and adjusting the figure based on factors like scarcity, plot size, and location.

The second approach is the marriage value method. This is where the value of the land is calculated by assessing how much it would enhance the value of any property it merges with. Typically, a fraction of this sum, usually half, is considered as the land’s value. Additionally, it may be prudent to take into account any corresponding reduction in the value of the seller’s property.

Although these valuation concepts seem straightforward, in practice, they can be more complex. One of the challenges lies in finding enough reliable evidence of land sales. While data on house sales is well-reported, land sale agreements are often more private. They tend to involve negotiations between two individuals and without public advertising. As a result, the agreed-upon sums between buyers and sellers may be more influenced by individual affordability rather than broader market factors.

Additional factors

In addition to considering the previously mentioned points when valuing a plot of garden land, it is essential to assess its appeal to potential buyers. For instance, plots surrounded by neighbouring properties might not be as valuable as similarly sized land that benefits from a separate, unobstructed access route.

Furthermore, the circumstances and timelines of the sale could also influence the agreed-upon amount. Executors selling an asset may have different priorities compared to neighbouring landowners who were not actively looking to sell until approached. Thus, their willingness to negotiate could vary.

The potential for planning issues and changes in the intended land use, can also impact the selling price. Notably, garden land typically commands a higher value compared to some farmland, which might be subject to VAT.

As any surveyor or architect would confirm, land with existing planning permission generally fetches higher prices compared to terrain without such pre-approval.

Restrictive covenants on land

To facilitate the transfer of ownership, engaging a solicitor or conveyancer is necessary. During the preparation of the appropriate contract for buying or selling garden land, it is crucial to take into account any restrictive covenants that may apply. These covenants often aim to prevent noise nuisance from the plot or any inconvenience caused by potential future construction work.

In some instances, additional clauses might come into play. For example, overage provisions could entitle the land seller to receive a payment if the buyer secures planning permission for the land after the transfer, within a predetermined period.

Furthermore, depending on the location, the seller might wish to retain mineral and subsoil rights or include clauses concerning sporting rights and even airspace. These factors should be addressed and outlined in the contract to ensure a clear and comprehensive agreement.

In summary, there are numerous factors that influence garden land prices, making the valuation process complex and diverse. To ensure arriving at a fair and accurate price, seeking guidance from an experienced professional is often beneficial. Why not contact our expert team today to discuss this opportunity and how we can help you.

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What’s happening with minimum energy efficiency standards and EPC ratings?

Posted on by Sophie Winter

In 2020, the government revealed its intentions to raise the Minimum Energy Efficiency Standards (MEES) for the Private Rented Sector. The plans specified that private rented properties would be required to achieve an Energy Performance Certificate (EPC) rating of C or higher by 2025 for new tenancies, and by 2028 for existing tenancies.

Are landlords ready for changing Minimum Energy Efficiency Standards?

Recent data indicates a gradual enhancement in the energy efficiency of properties available for rent. As the number of properties with an EPC rating of C or higher has increased by 16% since January 2019.

Meanwhile, the number of rental properties with EPC ratings D to G dipped by 11%. These figures suggest that landlords are taking steps to either improve the energy efficiency of their properties; or becoming more selective with their investment choices.

A notable 61% of landlords say that they would not consider investing in a property with a rating below C. This shift in mindset demonstrates a change in priorities and an acknowledgement of tenants’ preference for higher-rated properties.

Will the new minimum standards be included in the Decent Homes Standard?

The A Decent Homes Standard in the private rented sector consultation outlined the suggested measures to implement the Decent Homes Standard in the private rented sector.

This standard is anticipated to be implemented in conjunction with the Renters (Reform) Bill. According to the consultation proposals, one of the criteria, criterion D, requires homes to offer “a reasonable degree of thermal comfort.”

In the House of Commons Committee report on Reforming the Private Rented Sector, a recommendation was made to incorporate the Minimum Energy Efficiency Standards (MEES) into criterion D of the Decent Homes Standard. This suggestion is regarded as a simple and modest simplification of the complex regulatory framework.

Currently, the Minimum Energy Efficiency Standard is not applicable to the social housing sector. Thus there is no necessity for it to be aligned within the Decent Homes Standard.

When will the increased standards be formalised?

The industry is still anticipating the outcome of the 2020 Energy Performance consultation. This will provide additional information regarding the requirements. Energy minister Andrew Bowie recently mentioned that the initial update for this year will merely consist of a summary of the responses received.

Earlier, the Telegraph reported that landlords would be granted until 2028 to comply with the updated energy efficiency requirements. However, there has been no official announcement to confirm this specific date.

What should landlords and agents be doing to prepare?

The present government guidelines for complying with the current MeeS regulations provide a list of recommended upgrades for landlords, along with their average costs. These upgrades encompass options such as internal or external wall insulation, draught proofing, solar panels, among others.

It is anticipated that the government will officially establish a cap of £10,000 on upgrade expenses. Allowing landlords to seek exemptions if the costs exceed this limit. Various sources of funding are available for these types of upgrades.

How can we help?

Contact our expert lettings team today to discuss your property and how we can help you with these changes.

This article is intended as a guide only and does not constitute legal advice. For more information, visit gov.uk.

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How to value my land

Posted on by Sophie Winter

If you already own a plot of land and would like to sell it on; you might be wondering how you value land. This guide will provide you with some useful tips when it comes to how land is typically valued. Although you may find it more beneficial to get in touch with us for a free appraisal of your land for development.

Land is valued depending on the market

Similarly to how properties are valued at different rates depending on where they are in the country; land is valued according to market value (as opposed to the actual land value).

Put simply, this means that a plot of land in Central London, will cost a lot more than a plot of land in the southwest countryside. This is an important thing to consider when you are valuing your land.

Land value calculations

There are multiple variables that go into assessing the value of land, but there’s a simple equation that most use.

Value of land = Price of new homes – cost of building the new homes

While the above is very formulaic, the actual value of the land can be extremely subjective depending on the land itself. Here are some important pointers and things to consider about valuing land:

Other factors that can affect the value of land

There are quite a few additional factors that can affect the value of your land. These include:

Connection to services

A plot of land that has a good connection to water, gas and electricity, will be much more favourable than a plot of land without these services. Valuers will consider both the cost of bringing these services to any dwellings built on the land. Along with the price people will be prepared to pay for the ease of having the services pre-connected.

Developments in the area

A land valuer will consider all of the prospective developments in the area. This will be to assess what may change before a dwelling is built and completed. For example, a new school opening nearby would increase the value of the property. But a block of flats built on neighbouring land would reduce the value of the property. An experienced valuer will have a clear idea of the council’s and neighbours’ plans for the future.

The site itself

It may seem obvious but a valuer will assess all parts of the land, including its topography. If it is located on a hill, then the value may reduce. This may be because properties built on the site will need extra work, and will most likely cost more.

Location to nearby services

Similarly to when buying property, factors such as local schools, links to public transport, and accessibility to amenities; are all considered when purchasing a plot of land. The value of land with these amenities close by can be significantly higher than exactly the same plot of land without them.

Size

The size of the land is one of the main factors that go into its valuation. Most think that the bigger the land, the higher the price. However, as listed above, there are many other factors to consider when valuing land. So much so that a smaller plot of land may be more valuable than a larger one elsewhere.

Legalities

There may be legal documents that mean a certain plot of land cannot be developed on in a specific way. Whilst these can often be overturned, it can be a lengthy and costly process.

Want a free valuation on your land?

As you can see, all of these factors consider both the value of the land itself; and how much it would cost to build upon the land. Although we’re firm believers that knowledge is invaluable; a full land valuation should be done by an expert. But having some insider knowledge about how to value land will help you feel reassured that you are getting a good price.

Get in touch with us today for a free assessment of your land for development.

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