A Father’s Tale: Navigating The Twists And Turns Of Buying A Home

 There’s plenty to consider when moving home, especially when a growing family is involved.

Over the past few months, we’ve looked at the buying and selling experience through the eyes of different members of a family who moved recently.

We’ve spoken with teenagers, tweenagers (9 – 12), younger children (5 – 8) and mums.

In this article, it’s dad’s turn to share his thoughts, fears and advice on moving home with a family.

Here’s Dave’s experience.

From first glance to final offer

“At first sight, the property seemed almost too good to be true, ticking every box on our wish list. Yet, the initial excitement gave way to a lot of questions. Could we imagine our family’s life here? What renovations were needed, and could we realistically achieve and afford them? We decided to go for it as a family, and our offer was accepted.”

The mortgage maze unravelled

“With interest rates on a rollercoaster of their own, securing a mortgage quickly became our top priority. I spent a lot of time finding the right mortgage for us, and it was pretty stressful waiting to see if we’d be approved for one.”

The heartache and hope of selling our home

“Letting go of our home, where we’d made many memories and carried out a lot of improvements, was bittersweet. The emotional weight of moving on was a hurdle I hadn’t fully anticipated, especially as we listened to the kids’ concerns and thoughts. But ultimately, everyone was excited about it.”

When the best-laid plans go awry

“It was a challenge keeping our property chain together. My biggest fear was disappointing our children, who had set their hearts on the new home. Through constant communication and the support of our estate agent, we got the deal over the finish line.”

Final thoughts

“The best advice I can give any parent during a home move is to keep the kids informed, keep a sense of humour and perspective, control what you can and employ the right agent to handle your sale. Aim to be over-prepared rather than the opposite.”

If you’re thinking of moving, contact us today at 023 8001 8222.

Landlords, Get The Best From Your Letting Agent By Following These Simple Steps

 If you’re a landlord looking to save time and money (and let’s face it, who isn’t?), a good letting agent can be a game-changer.

They’ll manage your rental property day to day (so you’re free to focus on your other responsibilities), regularly check in with your tenants (to ensure there are no issues) and remind you of your legal obligations.

A top letting agent can also look ahead and, drawing on their industry experience, advise you on your long-term investment strategy.

But, as with all business relationships, communication is key. When there is clarity and mutual understanding, things run more smoothly, and you make better decisions.

So, how can landlords build a strong and successful business relationship with their letting agent?

Here are some tips.

Before you sign up for services, read your agency agreement and be clear about what you’re getting. If there’s anything you’re unsure of, speak up so you start out on the right footing.

Discuss the level of contact you would like with your agent and how involved you want to be with decision-making. For example, some landlords are happy for agents to instruct work on their behalf, while others want to be more involved. 

If you’re given advice that you don’t understand, ask questions. A letting agent will always try to act in the best interests of the landlord and the tenant (remember, happy tenants stay longer). They also understand the law and will make recommendations based on your legal obligations.

Outline your long-term strategy so that your agent can best advise you about issues such as redecoration and refurbishments.

If there have been any past maintenance issues or problems with neighbours, be clear so the agent can be on the lookout for potential problems.

Remember, letting agents are professionals. Don’t expect them to act unreasonably on your behalf. 

Discuss the history of the property. For example, if it’s the home you grew up in and you have a strong personal attachment to it, let the agent know. 

For more information about our property management services, contact us here at 023 8001 8222.

2-Bed Or 3-Bed Southampton Homes: Which Sells The Fastest?

  Understanding the nuances of property sales is essential for both homeowners and investors in the dynamic Southampton property market.

A few weeks ago, I stated that of the Southampton properties that have sold subject to contract (stc) in the three months of Dec, Jan & Feb, it took an average of 62 days to sell.

Now time has moved on, looking at the Jan, Feb and March Southampton house sales, this has slightly improved, so now …

The average Southampton home in Q1 2024 was on the market for an average of 56 days before agreeing on a sale.

This change, though minimal, is noteworthy against the backdrop of the UK’s economic environment.

As a seasoned estate agent in Southampton, my interactions with landlords and homeowners eager to navigate the Southampton property market have revealed a common query: the impact of property type and the number of bedrooms on its saleability.

Saleability can be measured in several ways. One method is to calculate what percentage of homes of that type, etc, sell compared to how many do not. Another is to calculate how long it takes to agree on a sale. A few weeks ago, I looked at how the price range affects how long it takes to agree on a sale. Therefore, for this article, I wish to look at how quickly a property sells when looking at the type of property or the number of bedrooms.

Southampton Detached, Semi-Detached, Terraced or Flat –Which sells the quickest?

Looking at the home sales that have taken place in the last three months, this is how long it has taken to find a buyer for the different property types:

• Detached homes in Southampton – 72 days to find a buyer.
• Semi-Detached homes in Southampton – 36 days to find a buyer.
• Terraced/Town houses in Southampton – 41 days to find a buyer.
• Flats/Apartments in Southampton – 84 days to find a buyer.

Southampton 1 beds, 2 beds, 3 beds, 4 beds or even 5+ beds –Which sells the quickest?

Looking at the home sales that have taken place in the last 3 months, this is how long it has taken to find a buyer for the different bedroom types:

• One bed homes in Southampton – 70 days to find a buyer.
• Two bed homes in Southampton – 64 days to find a buyer.
• Three bed homes in Southampton – 43 days to find a buyer.
• Four bed homes in Southampton – 66 days to find a buyer.
• Five bed (or more) homes in Southampton – 80 days to find a buyer.

Drilling down into the numbers, it becomes apparent that Southampton semi-detached homes are the quickest to sell when it comes to type of property and Southampton properties with three bedrooms sell the quickest.

The Current Southampton Property Market Landscape

The present-day Southampton property scene presents a mixed bag. An increase in listings compared to 12 months prior suggests a vibrant market, yet it must be remembered that there has been an increase in selling times, which hints at a shift towards a buyer’s market (in 2022, it took an average of 46 days to secure a home sale, whilst, in 2023 it was 68 days). This nuanced change underscores the importance of strategic selling and investment approaches in today’s climate.

Understanding and adapting to these shifts is critical for those selling their homes. The proper presentation and pricing strategy can significantly enhance your Southampton property’s appeal, aligning it with current buyer preferences and market trends.

On the investment side, properties that have lingered on the market might represent hidden gems. These situations often allow for more negotiation leeway, potentially leading to advantageous deals.

As we enter Q2 of 2024, the Southampton property market is ripe with opportunities. Sellers must be attuned to what resonates with today’s buyers, leveraging insights on preferred property types and sizes to their advantage. Meanwhile, Southampton buyers and buy-to-let investors can find value in exploring properties that have been on the market longer than average, where negotiation can yield significant benefits.

Expert Advice for Navigating the Southampton Property Market

In navigating the Southampton property market, several strategies can prove invaluable.

For Sellers: Emphasise your property’s unique selling points, be its location, size or specific features. Ensure your Southampton property is well-presented. Setting a realistic price based on current market trends and comparable sales will expedite the selling process.

For Buyers and Investors: Conduct thorough research to identify areas with high growth potential or market-undervalued properties. Consider properties others may have overlooked, as these can often be negotiated to a more favourable price.

For Everyone: Stay informed. My Southampton property blogs and national property news can keep you abreast of local market trends and provide a strategic edge, whether you’re selling buying or investing.

With its ever-shifting dynamics, the Southampton property market presents many opportunities and challenges. For sellers, aligning with market preferences and presenting your property in the best light is crucial. Buyers and investors, on the other hand, should look for potential in less obvious places where patience and negotiation can unlock significant value. Navigating this landscape requires market knowledge, adaptability, and strategic action.

Whether you’re looking to sell your cherished home or make a savvy investment, understanding the pulse of the Southampton property market is your key to success. If you have any questions about what I’ve said in this or any of my articles on the Southampton property market, please do not hesitate to contact us by telephone on 023 8001 8222 or email southampton@belvoir.co.uk.

The Pros And Cons Of Taking Your Kids To Property Viewings In Southampton

  If you’re looking for a new family home in Southampton, viewings will play a key role in your quest to find ‘The One’.

While marketing photos and virtual tours serve an important purpose, nothing rivals seeing the décor, layout and location with your own eyes.

Viewings also give buyers the chance to discuss the property with the agent and learn more about its history and the seller’s situation.

With all this in mind, where does that leave parents? Should they take their offspring to viewings or make other arrangements for their children?

There’s no right or wrong answer: it depends on your circumstances and your children.

But here’s a list of the advantages and disadvantages to help you decide.

Pros

You can observe how your kids react to a property. If their immediate response is positive, you know you’re on to a good thing. Alternatively, if they start arguing over who gets which bedroom, as one is significantly bigger than the other, you’ve got some thinking to do.

Your children may have a different perspective and highlight aspects you might not have noticed.

If children are involved in the process, they’re more likely to feel optimistic about moving. Considering their views may help you avoid moving-day tears.

If a seller has a strong emotional attachment to the property, they may wish to see it go to a family and so look more favourably on your offer. (We’ve known buyers joke about taking other people’s kids to viewings so that they can play the ‘family card’.)

It gives sellers a good idea of where you’re coming from and your motivation.

Cons

Your children could be a distraction, meaning you can’t give the property your full attention. You may fail to notice the opportunity of a doer-upper or spot potential problems.

Your kids could break or spill something, leaving you red-faced

If your child is struggling to adjust to the idea of moving, they may find viewings unsettling.

Your child may fall in love with a property you dislike and feel disappointed when you don’t buy it.

Suggestion

If you can get childcare, consider attending first viewings unaccompanied. Take your offspring to second viewings so that they’re only seeing properties that are real contenders.

Looking to buy or sell in Southampton? Contact us here on 023 8001 8222 to discuss your property needs.

Making Tax Digital: A Timeline For Southampton Landlords On The Upcoming Changes

  Did you know that HMRC plans to introduce new rules on how landlords file their tax returns?

Here’s an update on what these changes involve and a timeline for when they’ll come into force.

Making Tax Digital (MTD) is an initiative designed to streamline the tax system by fully digitising it.

As MTD has been mooted for quite some time and its implementation delayed twice already, you may have already heard about it.

But if you’re hazy on the details or have buried your head in the sand about it because tax talk bores you silly, here’s a reminder.

• MTD will require landlords and the self-employed to:
• Keep digital records of all income and expenditure. 
• Send HMRC quarterly updates.
• Submit an end-of-year final declaration.
• Use approved third-party software when reporting to HMRC.

HMRC plans to phase in the new system gradually. The current timeline for MTD compliance is:

• 6 April 2026, if your annual business or property income tops £50,000.
• 6 April 2027, if your annual business or property income tops £30,000.

There is no news yet about those with incomes below £30,000, but no doubt that will come later.

What happens to landlords who don’t comply?

HMRC has concocted a (somewhat convoluted) points-based penalty system for people who fail to comply. If, for example, you submit incorrect information or don’t use the appropriate software, you’ll accumulate points. When you accrue a certain number of points, you’ll be fined. The more points, the bigger the fine.

Will MTD have a significant impact on landlords?

A well-organised landlord who already maintains digital records may just have to check if their software is MTD compliant and adjust to more regular reporting deadlines.

However, if you’re the kind of person who always has a last-minute panic when your tax return deadline looms, and files receipts down the back of the sofa, you’re in for a big change.

Whichever category you fall into, it’s worth thinking about MTD now. Even though its introduction is still some way off, the deadlines will come around quickly enough.

Also, it can take time to implement a new system, and you may need to purchase new software. As you accumulate points for every error in your reporting, the number of fines you rack up could quickly grow if you’re sloppy.

Many landlords find going digital with their accounts a more efficient way to run their portfolios.

It means all relevant records are in one place and easily accessible, enabling them to monitor cash flow closely.

If you’d like more advice on preparing for MTD, please contact us on 023 8001 8222.

Southampton Q1 2024 Property Market Report

 

In the articles on the Southampton property market, we like to provide an insight into the real story of what is happening in our Southampton (and national) property market and address the misconceptions that some of the ‘doom monger’ media have been spreading.

Despite almost daily reports of a housing market crash since September 2022, the data shows that the British (and Southampton) property market is doing OK.

So, let’s dive into the stats and start with the life blood of the housing market – new properties coming on to the market.

Nationally, 444,668 UK properties came onto the market in Q1 2024.

(Q1 = Jan & Feb & March)

Interesting when compared to 407,946 UK properties in Q1 2023 and the 7-year Q1 average (2017 to 2023) of 403,105 new properties on the market.

New properties coming onto the market are a vital bellwether of the property market.

Why? Well in 2008, the number of properties coming on the market in Q1 was double that of 2007, this meant supply (number of homes on the market) vastly outstripped demand and hence economics dictated, and house prices fell.

The balance of houses coming on the market and how many sell determine what happens to property prices.

So how do you know if we are heading for another Southampton house price crash as we did in 2008 or not, as the case maybe?

Let me share a quick and easy way to find out before anyone else.

Initially, perform a Rightmove search in Southampton and write down the number of properties for sale every week. Next, carry out the same search, yet this time include sold subject to contract properties and make a note of that. The difference between the two numbers will show the number properties sold subject to contract. The final step is to calculate the ratio between the first two numbers: i.e., what’s available versus what’s been sold.

If the ratio of sold property to available property rises monthly, the market is improving. If the ratio is falling, the market is slowing.

If you really wish to go deep into this; you could split the search into property type (and bedrooms) you are selling and buying e.g., detached, semi, terraced/town house or apartments. This will help you to judge demand and supply and time the market to your advantage.

Next, looking at house sales nationally,302,382 properties sold (stc) in Q1 2024.

However, the devil is in the data. Comparing with previous stats, in Q1 2023, 276,482 properties sold stc whilst the 8-year Q1 average (2017 to 2024 inclusive) was 304,363.

Obviously, the medium term 8-year UK average includes Q1 2021, where 397,402 properties had sold stc and Q1 2022 when 341,888 properties sold stc. Both of those years were exceptional; however, when we compare Q1 2024 to the Q1 average of 2017/18/19/20, a more reasonable 282,488 houses were sold stc on average.

Next, I wish to look at what is selling nationally by price band.

• 35.4% of the properties that came on the market in Q1 2024 were up in the price band up to £250k, yet 42.9% of the home sales (SSTC) were in this band.
• 41.0% of the properties that came on the market in Q1 2024 were in the £250k to £500k price band, yet only 39.6% of the home sales (SSTC) were in this band.
• 13.4% of the properties that came on the market in Q1 2024 were in the £500k to £750k price band, yet only 10.7% of the home sales (SSTC) were in this band.
• 5.1% of the properties that came on the market in Q1 2024 were in the £750k to £1m price band, yet only 3.7% of the home sales (SSTC) were in this band.
• 5.1% of the properties that came on the market in Q1 2024 were in the £1m + price band, yet only 3.1% of the home sales (SSTC) were in this band.

Looking locally at the Q1 stats, starting with the number of properties in the Southampton area (SO14 to SO19) that came onto the market in Q1 2024 …

1,664 properties came onto the market in Q1 2024 in the Southampton area.

The average price of those Southampton properties coming to the market was £308,655.

The price range/band that saw the most listings was the £250k to £300k range, where 342 Southampton area properties came onto market (followed by the £150k to £200k range, where 248 properties came onto the market).

Now, looking at sales in Southampton …

1,180 properties were sold in Q1 2024 in the Southampton area.

The average price of those Southampton properties selling was £278,435.

The price range/band that saw the most sales was the £250k to £300k range, where 276 Southampton area properties were sold (followed by the £150k to £200k range with 184 Southampton area properties sold subject to contract).

Typical first-time buyer properties are leading the recovery.

Although economic turbulence remains, the UK property market is gradually moving towards pre-pandemic activity levels.

Some of you might have noticed with the national listings and sales figures mentioned above, that the lower priced range of properties are performing better than the higher priced properties. For example, just over a third (35.4%) of UK listings were £250k or below, yet that price band accounted for over 1 in 2.3 house sales (42.9%). Meanwhile, at the other end of the scale, 8.9% of listings in the UK in Q1 ’24 were in the £750k to £2m price band, yet only 6.2% of the sales were in the same band. In the £2m+ price range, even though the numbers are very small, the difference is quite startling, 1.3% of listings were £2m+, but only 0.55% of sales agreed were in the same range.

So, what does this all mean for Southampton homeowners wanting to sell in this market?

Realistic pricing when you put your house on the market is everything!

In Q1 2024, there have been 198,682 price reductions on the 633,417 properties on the market.

In comparison, there were 243,602 price reductions in Q1 2023 on the 590,481 properties on the market and 119,068 price reductions in Q1 2022 on 424,796 properties on the market.

It is better to come on the market at a realistic price to start when the property is fresh to the market, than go on at a high price, lose that initial honeymoon period and then reduce it, only for some people to wonder what was wrong with the property.

Although higher mortgage rates and economic headwinds present challenges, many potential Southampton home buyers who were effectively side-lined in the fierce bidding wars of 2021/22 will find that a slower paced Southampton property market gives them time to plan a strategy for their next move as we go into the traditionally busy post-Easter house buying season.

While the demand for quality Southampton houses is still healthy, if the asking price is above the current market, sellers may need help finding buyers.

Determining a realistic price is crucial but not easy. Many sellers look at similar properties on property portals, but those prices may be over-inflated.

Estate agents have more tools at their disposal, such as comparing sale prices for comparable properties, £/sqft and thinking about prospective purchasers in the market for the type of property under valuation.

Although getting the price right can be difficult, revising it downwards quickly is essential.

Southampton homeowners should ensure that their property looks better value for money than similar properties. If you plan to trade up, it is good sense to sell at realistic prices, as you will gain substantial savings compared to moving in the last few years.

However, if you don’t need to sell urgently, becoming a landlord could be an option – again I can help on that if needs be. Nevertheless, Southampton homeowners-turned-landlords should consider that if property values do drift downwards in the coming 12/18 months, it may take a few more years after that to recover to those values seen last year.

Whatever the rest of 2024 brings, moving home should mostly be based on your circumstances and not solely on what is happening to Southampton property prices.

If you would like an informal chat about your potential move without any obligation or cost, get me around for a chat. I promise I will tell you like it is, without any guff – then you can decide what is best for you and your family.

In the meantime, do let me know your thoughts in the comments.

Southampton Home Sellers: Staging Your Home On A Budget

Are you planning to sell your home this year?

Or just curious about what your property may be worth in the current market?

Good news – this article will give you five easy-to-follow tips highlighting how effectively staging your home can boost its appeal to potential buyers.

Styling your home can also potentially speed up the sale and even increase the value of offers you receive.

Let’s dive into the tips.

Declutter and depersonalise

Start by decluttering each room to make your home appear more spacious and inviting. Remove personal items such as family photos, memorabilia and anything else that might distract buyers from imagining themselves living there. A minimalist approach helps highlight the property’s features rather than its contents.

A fresh coat of paint

Refresh your walls with a lick of paint in neutral colours. Light, airy shades like off-white, beige or light grey can make spaces appear larger and brighter, appealing to a broader range of buyers. This simple update can add value to your home without breaking the bank.

Maximise natural light

Make sure your home is well-lit to make it feel warm and welcoming. Keep windows clean and curtains drawn back to let natural light in. If any area of your home feels a little dark, consider adding mirrors to reflect light and make the space feel larger.

Tidy up outdoor spaces

First impressions count. Tidy up your garden, mow the lawn and ensure bins are out of sight. A welcoming entrance and a neat and tidy garden can make a strong initial impression on potential buyers, making them more eager to see what’s inside.

Address little niggles

Take care of any small repairs around the house – fix leaky taps, squeaky doors or chipped paint. These details might seem minor, but they can suggest a well-maintained home to interested buyers.

Ready to take the next step in your home selling journey? Our team at Belvoir Southampton is here to provide you with personalised guidance, from staging to sale.

Our in-depth knowledge of the Southampton market and our commitment to exceptional service ensure your property will stand out to the right buyers.

Don’t leave your home sale to chance.

Contact us today at 023 8001 8222 to discover how our expertise can lead to your success.