Guildford Property Market update - February 2020

It appears that the prospects for an upturn in activity in the property market have been realised since the result of the General Election was announced, according to data from activity on the Rightmove portal over the last month.

The UK Market

According to the latest Rightmove Price Index report there has been an increase of 2.3% in the price of property coming to market this past month; and over 1.3 million buyer enquiries since election, which is up by 15% compared to the same period a year ago, to suggest there will be an active spring market ahead. There has also been an increase of 7.4% growth in the number of sales agreed this past month as sellers have acted quickly to beat the Spring rush.

Furthermore there were almost 65,000 properties marketed between the 8th December and the 11th January, which is the largest monthly rise that Rightmove have ever recorded at this time of year. This suggests therefore that these new sellers are feeling a surge of optimism. The number of enquiries made to estate agents were also up by 15%, compared to the same period last year, to suggest demand was on the increase. This then led to a 7.4% increase in the number of sales agreed over the same period.

Whether this is a sign of the pent up demand being released will remain to be seen over forthcoming months but it does appear that some sellers have moved quickly as was anticipated over the Christmas and New Year period.

The Guildford Market

There were 23 additional properties added in the last 14 days mainly replacing those taken off towards the end of last year so have been relisted, and in some cases with a new agent in the expectation that they will have more success. Overall stock levels therefore remain constant although there do appear to be more detached properties currently for sale. The average asking price for this type of property has marginally increased too.

The number of properties taken off market having been listed for between between 2 and 4 months might suggest that a number of offers were accepted towards the run up to the end of 2019. Alternatively this might also confirm the point above that vendors decided to de-list and then relist after the news regarding the General Election and the start of a New Year.

The average time taken to sell properties in Guildford over the last 90 days remains at 154 days, with half of the sales taking place within 78 days.

According to the latest data from Land Registry (available up until November 2019) approximately the same number of properties sold at a slightly higher average price of £498,595 in Guildford due to more detached properties being sold in the last month.

Having talked with local residents there does seem to be greater confidence in the market about the prospects for selling their property in the short term though one overriding comment made was that they feared how the growth of Guildford property prices in recent years will challenge those wanting to get onto the property ladder or to upsize. Having said this, many residents are sitting comfortably having decided to stay in their homes for the long term and experienced wealth that they could never have forecast at the time they purchased their home.

See you again soon for next month's property update to discover whether this initial feeling of optimism, that the New Year and the release of some of the pent up demand have brought, will be realised with a growth in property sales over the forthcoming months.

To request a copy of the latest Rightmove Price Index report featured in this update, please call 01483 320207 or text 07786 965631. Always happy to have a chat about the local property market too.

Investment decision: Lindfield Gardens v Tormead Road

A landlord came to our office for advice recently asking whether he should invest by buying a five bedroom house in a more affluent area within a short distance of the town centre to let to a large family or to sharers. They were considering the residential area bordered by London Road, Epsom Road, Cross Lanes and Boxgrove Road.

We did some research and found a spacious sized five bedroom townhouse in Lindfield Gardens, with views over Stoke Park and on the bus route into the town centre and then onwards to the Surrey Research Park and Royal Surrey County Hospital.

This property was available for £575,000 and could be let out for £2,750 per month as a family single let to achieve an annual gross yield of 5.7%; or to young professionals (subject to receiving an HMO licence) for £3,850 per month, to achieve an annual gross yield of 8%.

Lindfield Gardens - townhouses

Properties in this area are very popular with families because there are a number of private schools located close by. These include Tormead, Lanesborough, Guildford High School plus George Abbot School so there is great demand from investors and tenants alike, making it a relatively good investment area within a desirable part of town.

Tormead Road is located within a 10-15 minutes walk of the town centre. London Road railway station is nearby, to provide links to both Guildford mainline and all stations to London Waterloo. Spectrum Sports Centre is located on the edge of Stoke Park and Merrow Downs are not far away, so active families are able to enjoy both town and country life here.

A place on which to reflect in Tormead Road

We then compared the property in Lindfield Gardens with a more spacious and therefore bigger five bedroomed detached house on Tormead Road to determine if the landlord would gain more financially, by buying there. The two streets are just five minutes walk apart so provide a useful comparison within the same area of Guildford.

A 5 bedroom detached house in Tormead Road was sold recently for £892,450 with a rental value of £3,350. While a more desirable road and mainly owner occupied it is unlikely to attract sharers as the nearest transport links may be considered too far away.

This means it is likely to be a family single let so while the rental will be £600 per month greater than the single let rental value for Lindfield Gardens it will not attract the premium rental for a shared property. The annual gross yield will be lower than the property in Lindfield Gardens, at 4.5% but the potential capital gain greater having invested more for the property in Tormead Road, will be greater.

Tormead Road

This shows that while properties can achieve a higher rent than others in the same geographical location it does not always suggest there will be higher returns for the investor.

More importantly an investor could purchase an investment property in this desirable area, where there is high demand for rental property, for a lot less than they might have thought possible all because they have done their due diligence on the type of properties available, and at what price, on various roads within a specific area.

In this instance our landlord will have the advantage of being able to offer his tenants the benefit of being located across the road from Stoke Park and on a major bus route, so both parties will be happy.

If you would like any advice on doing your due diligence when choosing properties in a particular area of Guildford or a general discussion on investment opportunities in the area your call will always be welcome. Phone 01483 320207.

Guildford Property Market Update - January 2020

Happy New Year to all our readers.

It is at this time of the year that we all look forward to changes for the better and one way to instigate these changes is to move home to create a new lifestyle for ourselves. It will therefore be interesting to see how the result of the General Election and the exit from Europe will boost house sales.

The UK Market
In their latest Property Index, Rightmove forecast a 2% price rise for the UK in 2020, now that there is a little more certainty following the General Election. Whether there is a pent up demand from the last 3 years of uncertainty remains to be seen. This may not appear until the Spring when listings typically increase as the days become longer.

They suggest that demand for property remains resilient but are understandbly worried about the lack  of supply. The number of UK sales agreed so far in 2019 is down by just 3% on 2018, while the number of properties coming to market was down by 8%. There are several factors to suggest that the market should pick up. Interest rates remain low, lenders are competing to lend, there is high employment and wage growth is making housing a little more affordable.

The Rightmove report therefore expects the number of properties for sale will recover as more new sellers come to market to make up some of last year’s lost ground. However lower stock levels are likely to place an upwards pressure on UK house prices.

Another concern is that first-time buyers are still struggling to save a deposit to buy their first home. If they are unable to get a foot onto the first rung of the property ladder this will hinder sales further up the property ladder. Solving this issue would help to limit rising rents and increase transactions in the housing market.

The Guildford Market
Property stock levels in Guildford have continued to fall, whatever the type of property or the number of bedrooms, by 19%, compared to this time last year.

There has been a slight increase in properties available for sale over the last month, possibly due to sellers knowing the result of the General Election and therefore more confident that they will sell this year. A few properties that did not sell last year have been relisted in the past fortnight.

If one were to look back at the year 2007 (pre-credit crunch) the change in stock levels compared to then are even more significant.

The time that vendors leave their properties on the market continues to increase though it is interesting to note that the number of properties spending between 1 and 2 months on the market (whether they sell or not) has decreased. This might suggest one of two things. Either the vendor was
curious to know whether their property might sell and so was a speculative listing; or more importantly they managed to sell.

The average time taken to sell properties in Guildford over the last 90 days has been 154 days, although half of the sales did occur within 78 days.

Asking prices have continued to increase over the past month by between 1-2% ... but have sales prices also increased?

According to the latest data from Land Registry (available up until Oct 2019) over the last 12 months there was a slight decrease of 1.4% for all properties in Guildford. Detached fell by 0.9%; semi-detached by 0.5%; terraced by 1.1%; and flats by 3.7%.

Is this because agents have been over confident in their original valuation, as suggested by the number of properties on the property portals, with reduced prices; or have buyers had success in negotiating prices down? This confirms again that prices can only be determined by what the market is prepared to spend.

See you again soon for next month's property update when we expect to see further certainty assuming there is progress in the BREXIT negotiations; and an increase in property listings now that owners have returned to normality after the festive season.

To request a copy of the latest Rightmove Price Index report featured in this update, please call 01483 320207 or text 07786 965631. Always happy to have a chat about the local property market too.

Where would Santa Claus invest in Guildford?

A landlord dressed as Father Christmas came to see me the other day and asked if the real Father Christmas wanted to invest in property, so he could have somewhere to put his feet up and therefore call "home", where would it be?

Well obviously it would have to have a chimney that would "stack up" with sufficient room for his reindeer, Rudolph, and accommodation for himself and Mrs Claus but most importantly a grotto to which local children could come to meet him and collect their presents. 

This would require a fairly large garden in which he could dig down to build a cave and therefore create the grotto. The garage would have to be fairly large not only to store the sleigh for Rudolph and all the presents but somewhere for the elves to pack the presents ready for delivery to all the children.

Having considered this requirement for a second, it suddenly dawned upon us. We knew the very place. It would be ideal. It would be located in a village just outside Guildford with a population of just 2,981 living in 1,310 households. The local area has woods and several commons ideal for Rudolph to munch grass and to play with all the other local four legged residents.

The property would be located at Christmas Pie Avenue, in the village of Christmas Pie, one of the most festive sounding street names in the U.K.

The curious name of Christmas Pie owes its name to a property once owned by a prominent local family named Christmas. They were major landowners during the 17th and 18th century. 

"Pie" is a word derived from the Saxon term "pightel" or "pightle" meaning a small piece of arable land. Until the area was built up during the 1920s there was a small field called "Pie Field" located near the Christmas Pie crossroads not far from the village of Wanborough.

The village is the home to Christmaspie Cottages, converted from the original Christmaspie Farm built circa 1823 which probably took its name from the association with the Christmas family. Nearby Santa will be able to work off a bit of his Christmas dinner on the local Christmas Pie Trail, a 8.5 miles long, leisure cycle route running from the northwest edge of Guildford to the east side of Farnham. 

Santa would not have to wait too long to buy in Christmas Pie Avenue because properties do tend to sell frequently. There have been 59 property sales since the beginning of 1995, and 4 in the last 12 months. 

Local bungalows all with chimneys designed for Santa Claus

Many owner occupiers are couples and families so Santa will not have far to travel to deliver presents to the local children. The majority of properties in Christmas Pie are bungalows so Santa will not have to negotiate too far down to the Christmas tree to drop off the presents either.

Now that Santa is having to live off a pension and savings and cannot obtain a mortgage because he is now 'elf-employed it is unlikely that he will be able to obtain a mortgage. In any case, there will probably be too many Claus' to comply with. The fact that he seems to be so poor is probably why he is always seen in the red. Fortunately for him, properties in Christmas Pie Avenue are reasonably priced compared to other areas of Guildford so he should be able to afford his purchase there.

For example, the most recent sale was at no 99, in August 2019, when a 2 bed house sold for £390,000. A similar sized property in Guildford town centre would be priced typically around £425,000.

However the current average value of property in Christmas Pie Avenue is £507,700, having risen by 5.3% in the last year and by 201.76% in the last 20 years, which is almost the same percentage at which Santa Claus' waste line has expanded over the same time.

This is my last blog before Christmas so all that remains for me to do is to wish all my readers a very, very Happy Christmas, good heath and lots of fun over the festive season. Ho! Ho! Ho!

Celebrating Christmas for charity in Guildford

If you would like to have a chat about property prices in Guildford or would like to discover where and how you can gain a greater return for your money in the bank call 01483 320207.

Good debt or bad debt?

People often come to me concerned that the return on their savings is so small now that interest rates are at an all-time low. They are therefore challenged to find a home for their money where they will attract a higher rate of interest.

When I ask, "Well, have you considered 'property' as the home for your money?" they tend to retort, "Does that only work when you have lots of money?"

This is because we are all brought up to believe that you need at least a 20% deposit to buy an investment property and then a mortgage to fund the remainder of the purchase price. Yes, this does apply when using your own funds but there is an alternative way to invest.

Robert Kiyosaki developed the idea of good debt/bad debt in his popular book, "Rich Dad, Poor Dad".

Firstly, the mortgage on your own home is considered to be "bad" debt. This means that you have to pay the amount owed on the mortgage out of your own hard-earned income over a period of (say) 25 years when hopefully your finances will be in order at all times. Sadly, many property owners will go through a period of their life when times will not always be financially sound for them. For example, it's a sad fact but at least one in three people get divorced. Many people will be made redundant at some point in their working life too. So unless, there is a safety net there may not always be sufficient income to cover mortgage payments every month for the 25 year term.

When debt is used to fund property investments it is considered to be "good" debt. "Why is that?", I hear you ask. If your property investment is a rental property, your tenants are paying for your mortgage. This debt is called "good" debt because you are investing in an income-producing asset. Once your tenants have paid their rent to cover the cost of your monthly mortgage payment plus utility and Council tax bills (if you pay for these) any remaining money is profit, having allowed a percentage of this income to cover professional fees, maintenance, insurance and tax.

Investment property is therefore an income-producing asset, while the purchase of a residential property provides accommodation but no profit (unless you rent out a spare room).

The second concern that people often have is that you need vast sums of money to be able to invest in property. The answer to this is two-fold. In the first instance you should not invest too much cash in one property but use cash to afford a number of properties in order to spread your risk and secondly, to make your money work harder for you.

Few people will have hundreds of thousands of pounds lying around in their bank account and if they do, they are surely not receiving sufficient interest at today's rates to make this a practical thing to do. This means that all property investors, however wealthy they may have been, will eventually run out of personal funds to invest unless they are educated, professional investors who therefore know how to work round this challenge.

Successful property investors offer their network of contacts a golden opportunity to generate a higher rate of return on their funds. These returns will far-outweigh those earned by leaving their money in the bank; and they will have have had the pleasure of sharing in the success of a number of property ventures without having to spend time educating themselves in property investment methods.

When investing your own funds into property it is always wise to invest in a property that can be purchased below the typical market price i.e. at a discount. If this is not possible then one should add value by increasing the number of bedrooms to provide a higher rental income. This may be achieved simply by converting a reception room into a bedroom; or by converting a loft into a bedroom. Then the property has the potential to realise additional value so that the property can be remortgaged to provide the funds required to repay the investor.

As with all investment decisions professional advice should be taken and due diligence carried out.

If you would like any advice on doing your due diligence when choosing properties in a particular area of Guildford or a general discussion on investment opportunities in the area your call will always be welcome. Phone 01483 320207.

Guildford Property Market update - December 2019

This month is when we look forward to the New Year and of course, this will not only be the start of a new decade but a time of great uncertainty.

Now we know that the general election is to be held on Thursday 12 December the nation is hoping that the matter of BREXIT will be resolved once and for all, so the country can experience more certainty.

Looking back over the past year, asking prices in Guildford have continued to rise across the board, as have property values. Values increased by 4.61% in GU1, 2.39% in GU2 and 4.65% in GU4 respectively.

The number of properties for sale has fallen on average by 29% over the last year; and the time spent on the market has decreased but only marginally. There have certainly been very few new listings since the end of the Summer period when houses were either completed on or removed from the portals because the sellers were possibly speculative and had therefore decided to stay put.

The general trend appears to be for properties to be listed at an ambitious price only for the owners to become disillusioned by the lack of interest in their property, blaming BREXIT and the uncertainty in the market.

The good news is that buyers are still having to move and as stated last month, the number of transactions agreed is only marginally lower this year compared to last. There is likely to be a pent-up demand waiting for the outcome of the general election so house prices are likely to  continue to rise.

Most recent sales data from HM Land Registry

Rightmove have also made the point that those liable for stamp duty on their onward purchase, may be waiting to see whether stamp duty will be reformed to reduce the cost of moving. However Boris Johnson seems to have gone quiet on his proposal to change stamp duty.

As regards the future who can tell what will happen in the local property market. The only constant seems to be that there will always be a requirement to move as people experience changes in their lifes, creating the need for houses to always be bought and sold, especially in desirable areas with good schools, like Guildford.

In the meantime Guildford Property Newsletter wishes all its readers a Merry Christmas and a Happy Year so to finish this update on a festive note here are some events coming up during December for you and your family to celebrate the holiday season.

Spend Christmas at Guildford Castle on Saturday 7th December to enjoy the traditions of Christmas time past. Follow King Edward III and Queen Philippa of Hainault as they proceed up Guildford High Street to Guildford Castle to celebrate Christmas with much noise and mirth!

Participate in the Santa and Elf Fun Run to support Phyllis Tuckwell Hospice Care on Saturday 14 December.

See you again soon for next month's property update. To request a copy of the Rightmove Price Index report please call 01483 320207 or text 07786 965631

Ten things you need to remember when you move house

You’ve got the keys and you’re finally in so now you have a long list of things you need to change.

There is so much to think about, and as you become overwhelmed with excitement and panic amidst all the (organised) chaos, it’s easy to forget some important things from your ‘to do’ list.

So, here is a recap of ten really important jobs that you need to do once you’ve moved in.

1. Re-direct your post

Make sure you don’t miss out on receiving all those corny birthday cards from your best friends. On a serious note, you can get all your post redirected via the Post Office (although you do have to pay a fee). Also, be sure to inform your bank of your new address as soon as possible; in the age of digital banking, you can sometimes do this online or via your app.

2. Sort out your TV licence

While you spend more time online watching Netflix and YouTube there still remains the legal requirement to have a TV licence. If you had a license at your previous address and need to have it reassigned to your new home, you just need to change your address with them, and the contract will continue as usual. Otherwise you will need to purchase a new one which can be done simply by going online to register your new address and to confirm your payment preferences.

3. Set up the internet

Arguably the most important job of all … it’s best to ring up your current provider and ask about your contract terms. You might even be able to transfer it over to your new house or it could be a chance to shop around if you’re finishing your contract. You’ll need to book a date for installation though and that could take several weeks so try and plan ahead if possible.

4. Arrange your Council Tax

This is something you’ll want to sort out as a priority. Contact your local council to finalise your current bill, and to change your address if moving to an address that remains in the area covered by the Council. If not, then set up an account with your new council as soon as possible as you need to pay from the date you move in. The Council Tax due will depend on where you live, the size of your property and how many people live in your home. Local council websites are the best places to start to work out how much you’re likely to be paying.

5. Register to vote

It may seem like the last thing on your mind when you move in, but if you registered to vote in your old home you’ll need to register again for your new address to be able to to vote in national and local elections. Do not wait for a notification to arrrive through the post. This can be set up online using the local Council website.

6. Notify your Gas & Electric supplier

You should have already taken final meter readings before you moved out. Then you need to take new meter readings at your new home to ensure you get the most accurate bill possible. When you move home you can stay with the same energy provider or change to a new one, although check the conditions of your contract first.

7. Do the same with your Water supplier

This is another job that requires you to set aside time in your day to speak to a supplier although you might be able to do change your address online. Your water supplier needs to be notified so that they are made aware that your details have changed. Your new area’s water supplier will contact you once you’ve moved in to work out a payment plan with them.

8. Register with Doctor & Dentist surgeries

There may be a waiting list for good doctor and dentist surgeries in your new local area so sign up with your new address as soon as possible – you never know when you may need them.

9. Arrange insurance

Last but by no means least, make sure that you have your buildings and contents insurance in order. Be aware that you need to have building insurance from the point of exchange, not on completion – so make sure you remember to have signed up to a policy before proceeding with the exchange of contracts.

Finally... contact all your suppliers including credit card companies, DVLA, passport agency to confirm your change of address.

This can sometimes be done on a website where all the suppliers will be notified on your behalf saving you time and effort. Finally, let every company you make regular purchases from, typically online, know your new address to save deliveries still being made to your old address.

Do investment decisions require divine presence?

When speaking to a local landlord recently about buying investment property in the streets surrounded by Rydes Hill, Aldershot Road, Northway and Shepherds Lane he had two questions. The first was why are the roads named after cathedral cities - Canterbury, Durham, Peterborough, Lincoln, Gloucester and Worcester; and secondly would it make sense to buy more investment properties in these roads?

When finding an answer to his first question it did make me wonder. No doubt the streets were named many year's ago but did they have a link to the town having its own cathedral?

Guildford Cathedral, built between 1936 and 1961, is the seat of the Bishop of Guildford.

Guildford Cathedral

Guildford residents have always wondered why the town has not been granted city status. Traditionally this is given to towns with diocesan cathedrals, an association established in the early 1540s when King Henry VIII founded dioceses in six English towns and granted them city status by issuing letters patent and has continued to this day. As of 2014, there were 51 cities in England.

Guildford's 2002 application to be granted the status of a city was unsuccessful, losing out to Preston, the only English town that was formally recognised as a city as part of the Queen's Golden Jubilee celebrations.

No information as to why these streets should be named after cathedral cities in England so one must assume that the local authority named them for no other reason than to celebrate these other cities.

This area attracts landlords because the properties have been relatively inexpensive to purchase and are located within travelling distance of the Surrey Research Park, the University of Surrey, the hospital and the town centre so are suitable for students and young working professionals happy to share their accommodation with others.

Properties in the area covered by Durham Road, Lincoln Road, Canterbury Road, Worcester Road and Durham Close typically comprise 3/4 bedrooms and are currently valued at an average of £337,053. This is an increase of 361% over the last 18 years. Average rents are £1,995 pcm though landlords charging by the room will receive an estimated monthly rental income of between £2,400 and £3,000 depending upon whether they convert a reception room into a bedroom.

Keeping to the theme of cathedrals, Cathedral Close located close to the cathedral and behind the University campus is therefore ideally situated for the tenants living in the roads discussed above.

However the properties located here and in the adjoining road, Ridgemount, are owner-occupied family homes. The average price for a 4 bedroom property here is £840,900 and a typical rental is £2,500 pcm so the gross yield in the roads named after cathedral cities will be nearly three times greater than for the properties in Cathedral Close and Ridgemount.

However, we must remember that yield is not the sole consideration when investing in Buy to Let properties. When compared to the capital growth of 4 bedroom semi-detached properties in the cathedral roads area the properties in Ridgemount have risen by 390% over the same period. Some may say that this is due to divine intervention because Guildford Cathedral overlooks Cathedral Close and Ridgemount but no doubt the reason for the higher capital growth has to be supply and demand.

Nevertheless the landlord would be wise to buy in the roads named after cathedral cities as his objective to maximise gross yield will be realised while gaining capital growth at the same time. History has proving this so there is no need for a miracle to take place.

How to ensure a sale proceeds without delay

Sellers often ask how long will it take to move into a new home. If we lived in a perfect world an offer would be accepted and you'd be unpacking boxes six weeks later. Sadly this isn't a perfect world and there are many factors that they can influence the timeline of your property sale or purchase.

The first step is to make sure you have an estate agent and solicitor in place that are both aware of your time frame. It's also essential to check that your buyer has sorted out their finance. This is something that your estate agent should have checked before recommending you accept an offer from them, as a part of their vetting process, in order to make sure they are in a position to proceed with a sale. If this is not completed then this could be a real issue and therefore cause an unnecessary delay, or worse, result in a sale falling through.

Ideally a sale could be completed within six weeks if it's a simple straightforward sale with no chain and it is unusual for a house sale to take any longer than three months. If there is a chain there can be unexpected delays with other parties to the sale having their own challenges resulting in delays so you can expect your house sale to take typically between three and four months when this happens.

It is advisable to establish a completion date as soon as you can for all parties and to make this a part of the negotiations. Solicitors and surveyors will be busy especially during peak periods when sales are higher and therefore find themselves stretched which can hold things up. It's therefore important that you use a recommended solicitor that you feel confident will get things moving for you and help to speed up the process and mitigate any delays.

Solicitors who can appear to have no incentive to act quickly are one of the biggest causes of frustrations to clients so it's important to choose an agent that is on the case, chasing any missing paperwork and communicating frequently with all parties to minimise delays and therefore ensure a smooth transaction.

If you cannot rely on your estate agent to communicate between all parties in a timely manner then this will only cause delays and hassle leaving you with no option but to try to get things sorted out yourself. Avoid an understaffed estate agent and do not choose an agent based purely on price.

The most important thing you can do is to choose a great estate agent and a reliable solicitor other than that make sure that all the relevant property searches are up to date and have all of your paperwork prepared and ready with your funding in place in order to help the sale and purchase process progress quickly.

If you would like to talk to us about property in Guildford please feel free to call me on 01483 320207 or go to https://instantvaluation.newman.uk.com/ to discover how much your property is worth today.

Guildford Property Market update - November 2019

This month I am taking a look at the current market plus the weeks leading up to Christmas and the New Year. There is some good news too for homeowners with properties currently for sale.

Rightmove have just published their monthly House Price Index. This provides some encouraging news. When comparing today's housing market with the market a year ago the figure for the number of sellers is down by 13.5% due to the unsettling nature of the market putting off speculative sellers. Meanwhile buyers seem just as determined to buy so the number of sales remain virtually unchanged compared to the same time last year.

The number of sales falling through is also at its lowest since 2015 possibly because there are fewer speculative sellers currently on the market. This means that the more determined sellers have less competition for their property from other sellers. Buyers also have less negotiation power, now they fewer properties available to them so sellers should realise a sales price closer to their asking price.

The current market is price sensitive due to the uncertainty around BREXIT and the upcoming General Election. There is some thought that now is therefore a great time for sellers to prepare their property for listing in preparation for selling early in the New Year. Many sellers make plans during the Christmas break for the New Year. These often include selling their current home to move on in their life.

Taking the initial steps required to list a property now, rather than in the New Year will ensure sellers not only take advantage of the lack of speculative sellers but also benefit from a possible pent-up demand leading to a price rise, due to the General Election result and hopefully, a final decision being made on BREXIT.

This is why there is good news for current sellers willing to consider re-listing their home in order to attract new and more committed buyers.

And now for an update on the Guildford property market ....

Guildford has fallen in line with the conclusions arrived at in the Rightmove report. Property stock fell again in October with overall stock levels falling fractionally.

Asking prices for Guildford property have decreased up to 1% during the past month but sales prices for all property types increased slightly, with the exception of semi-detached properties. This might be because the asking prices were a little higher at the time these properties first came onto the market, typically during the Summer period.

Properties were on the market, for an average of 147 days rather than 157 in October 2019. Three bedroom houses and properties between asking prices of £500,000-1,000,000 typically spent less time on the market than properties in all other price ranges.

As we approach the end of the year the market does appear to be slowing down, as suggested by the Rightmove report. However there do remain signs of potential sales growth as buyers stay on the market and now that the General Election has been called, now really is a good time to consider listing your property.

See you again soon for next month's property update.

To request a copy of the Rightmove Price Index report please email richard.hodgson@newman.uk.com or call 01483 320207

Dreaming of your first home

If you are in your twenties, or possibly thirties, or you have children of this age then you are probably giving considerable thought to the idea of buying a home for first time buyers. Hopefully you have reached the stage where you are settled in your work and have been saving up for a deposit to consider affording a home.

Whether you are wanting to extricate yourself from your parents house or are tired of renting and paying off someone else's mortgage, especially if you are sharing with others, it's hard not to dream about finding a property to call your own.

The next thought you probably have is will this be possible in Surrey, especially as it has a reputation for property prices that might not be affordable? If you've searched online it can be depressing looking through the many million pound houses for sale around Surrey but as a first-time buyer you're certainly not alone in that respect.

First-time buyers made up more than a third (36%) of all property purchases in 2018, according to Zoopla. These numbers are up by 85%, from 2010.

So, how does Surrey hold up against the national average of a first-time buyer home?

Typical asking prices in Surrey

The national average price for a first-time buyer home purchase is £220,000 so, of course, you would expect to pay more in Surrey. However, if you manage to set your expectations at a realistic level by looking to buy a starter property like a studio or one bed flat, research suggests that studio apartments can be found for as little as £100,000, in Sunbury-on-Thames and Farnham.

More realistically, the average asking price for a one bedroom flat in Surrey, is currently around the £200,000 though this is likely to be located in less desirable areas of the county.

If your desire is to live in Guildford, a studio flat can be found for as little as £150,000 with the average asking price for a one bed flat at around £265,000, only a little higher than the national average.

The facts

Thirty-three is the typical average age of a first-time buyer in the UK, according to the Government’s most recent English Housing Survey (2017/18).

Twenty-nine is the current average number of years for a first-time buyer mortgage term and therefore four years more than the more traditional 25 years recorded just a decade ago.

The average earnings for those living in Guildford is £26,481 so the price earnings figure for those wanting to afford a flat for £265,000 will be 10 times. This is a useful calculation to make when comparing the affordability of one area with another.

Opportunities to reduce your purchase price

There will be instances where a property may be reduced in price because it is not selling (for whatever reason) or where there is work, or modernisation required, so the price can be negotiated downwards to allow a contribution towards the building costs.

There may be the opportunity to purchase a property at a lower price through an auction; or even from the local council, if it is empty and has no proven owner.

However these properties are unlikely to be mortgageable so may need a substantial cash input. In these instances it is always wise to consult with a mortgage broker experienced in funding investment properties.

While Surrey property does cost more doing one's research should unearth more affordable properties. If a first time buyer does manage to get onto the first rung of the property ladder they will potentially realise a capital gain over future years, and if so, this equity will gradually allow them to upscale so you never know, they may even be able to afford the home of their dreams one day to prove that dreams really can come true.

You should have bought in Markenfield Road 10 year's ago!

One of the most frequent questions asked by those starting out in the world of property investment is "when is the best time to start investing?" The response from experienced investors tends to be "10 year's ago". I suppose this is based on the assumption that properties are assumed to double in price every 10 years. The secondary response is "and if not 10 year's ago, the answer is now!"

How are landlord's properties performing?

One of my more established landlord friends has been investing for 10 years so was interested in discussing how his investments in Markenfield Road had performed during this period. I suggested we look at both the sale prices and rental figures achieved for properties in the street during this time. Then we could determine how the gross yield had changed as a result of these price changes.

Markenfield Road

This is a well established street situated opposite the cricket pitch, where Surrey County Cricket Club have played in the past. This pitch is also home to the annual Guildford beer festival. The street is located within a 10 minute walk of Guildford town centre

The properties in this street were built in Edwardian times, all to a similar design. Most comprise of 2 reception rooms, a kitchen and three bedrooms plus bathroom. Many have been extended by moving into the cellar or up into the loft to provide an extra bedroom plus bathroom. Several houses have been extended out to the rear to provide a larger and more modern kitchen.

Ownership status

The last census suggests that half the properties in the road are owner occupied and approximately a quarter are privately rented, so is popular with landlords. In fact one sixth of properties are occupied by more than 3 people suggesting that they are multi-lets.

The majority of owner occupiers are in professional or managerial roles, between the age of 30 and 44 with many being single. The number of degree educated people living here is also greater than the average number in streets local to Markenfield Road. This might have something to do with the proximity of the bars and restaurants in the town centre plus The Stoke Pub and Kings Head pub, at the top of the road. 

The figures

Returning to the figures the average value of a typical 3 bed semi terraced house on Markenfield Road was £245,250 in 2005. This figure had risen sharply to £360,395 by 2007 but dropped back to £335,950 for two years before recovering in 2010. Prices have continued to rise with the average value now standing at £469,900. A house in the street has recently sold for £524,950, a 214% increase in 14 years.

Then the landlord stated that the rents he had achieved on Markenfield Road seemed to be fairly stable over the ten years. In 2005 the average rent was £1,535 per month but is now between £1,695 and £1,850, dependent on the size and quality of the accommodation provided so rents have risen by just 10-20%. 

This is all great news for the landlord because his investment back in 2005 would have achieved a gross yield of 8% and now that rents have increased he is achieving 8.3% where as a landlord investing at today's current prices in Markenfield Road would achieve a gross yield of only 4% i.e.50% less. If the new landlord were to rent out to sharers he might increase his gross yield to 5.5%. 

The answer

It therefore seems that the maxim that states the best time to start investing was 10 year's ago is therefore true. Just imagine what the yield would have been if one had invested (say) 50 years!

If you would like to have a chat regarding property prices in a specific street and how they compare with prices elsewhere in Guildford or to just talk about investment opportunities in general your call will always be welcome. Phone 01483 320207 or email richard.hodgson@newman.uk.com

Top tips to sell property successfully

There are three main principles that are most effective when selling a home. These are presentation, marketing and pricing.

The decisions that house sellers make around these principles can significantly influence the chance to sell their home above or below market value. How you prepare your home for viewers and hiring the right estate agent to market your home will not only ensure your property is sold sooner but can potentially add thousands of pounds to its value and sale price.

Presentation

Declutter

Get rid of all the excess stuff that you have accumulated over the years, using the garage or your loft to store bulkier items or better still perhaps store it at friend's or family's houses, for the short term.

Potential buyers should not need to use their imagination to realise what the property might look like if they were living there themselves. Make it easy for them to see the most of the fantastic living space you are offering. Ideally storage spaces and garages should be empty or well organized to emphasize their practicality to potential buyers.

Touch up

Give your walls and ceilings a fresh coat of neutral paint to make your home appear lighter and more spacious. This will enable viewers to gain a quick impression of how they could adapt the rooms to their needs and tastes. It will also make it easier for the buyers to move straight into your home and to use the rooms immediately, than if the walls are painted in loud colours or are too dark.

You want to create a great first impression from the garden gate to the front door and to create a memorable experience and lasting impression that moves a viewer towards becoming a buyer.

Fix and clean

Make any minor repairs to any damaged items that you might have been putting off. For example, fill holes in walls, repair cracked tiles, replace missing doorknobs and worn or stained carpets.

The majority of buyers want to be able to move in and without having to make repairs that were left behind. Clean everything until it sparkles. Remove limescale, clean or re-grout tiles. Eliminate bad odours. Hang out fresh towels in the bathroom.

How does the garden look?
Perhaps the bushes and shrubs require a trim. Clean patios and decking. Mow the lawn. All these jobs around the house may not directly add value to your property but it will make it more presentable so you are more likely to sell as potential buyers visualize the need for less work and more downtime in future years.

Light and airy

Mirrors make a room look surprisingly bigger and lighter especially in smaller rooms or hallways so have windows cleaned inside and out and replace any broken light bulbs to make the place feel light and airy. Ensure you have lamps on in any dark corners. This will make the property feel bigger and more attractive.

Make your property look better

Plants and flowers add colour, life and light to a room and they smell great. So does that fruit bowl full of different coloured fruits, on your kitchen table or counter.

Cater for all the senses

Bad smells are one of the biggest turn-offs for buyers. Rather than just covering them up fix the source of the smell. Unblock drains, wash out bins, open windows and air the kitchen from old cooking smells. Conversely good smells can make a property feel more enticing.

Marketing

How do you choose the right estate agent?

Choose an agent who can demonstrate the most extensive marketing techniques and tools to attract the highest number of potential buyers. After all more viewers equals more offers which leads to a higher sale price. The photos taken and used need to be professional to showcase your home in the best possible way. Ask agents to show examples of their still images and virtual reality photography. 360-degree viewings are becoming more popular. Floor plans are a must.

One very important marketing tool is that is becoming more popular is video. Ask would-be agents to show you the videos they have recently produced and used to promote or sell other properties. Video is a great way to advertise the lifestyle that living in your home will provide. This will go far beyond the static pictures and imagination required to picture what a home is really like.

In this new age of social media more and more buyers are discovering property for sale on platforms such as Facebook, Instagram and Linkedin. Videos are the new commodity required to sell houses. If a picture paints a thousand words then the video brings a thousand pictures to life.

Showing the property

If you have hired a great estate agent let them show the property to viewers instead of you doing this yourself. It is a part of a professional estate agent's job to know the things to say and what to highlight. A great agent should have the techniques to deal with objections and ability to move viewers towards making offers.

Pricing

On the topic of pricing choose the agent who demonstrates the most experience, research, evidence and facts when it comes to setting the price of your house. Work with the agent who knows the most about your area. There is a wealth of information an agent should show you on the homes for sale nearby that you are currently competing against; plus evidence of sold homes in your area, with size comparisons, as well as their own local results.

Do not simply be impressed by the agent that proposes the highest asking price of your property. The price at which a house is listed is extremely important. Local Rightmove statistics show that over 40% of properties have had their listing price reduced before they sell often due to being overpriced in the first place. Rightmove also demonstrates that if a home does not sell within the first four weeks of being listed the interest level drops, levels out and then often does not sell at all.

Subsequently an agent typically suggests a price reduction to gain further attention. Time is lost when this happens. Would-be buyers see that the price has been reduced and can be forgiven for thinking the home has not sold due to a lack of interest or that there is something wrong with it. This is then often reflected in fewer offers received and when it eventually does sell the price achieved can be less than should have been if the property had been priced correctly at the initial valuation.

If you would like to talk to us about property in Guildford please feel free to call me on 01483 320207 or go to https://instantvaluation.newman.uk.com/ to discover how much your property is worth today.

Family living in the centre of Guildford

This spacious property is a 3 bedroom detached house and I like it because it is situated within a 2 minute walk of Guildford's historic High Street. It also retains some period features including an inglenook fireplace and wood beams in the lounge area.

Period features and an inglenook fireplace

Delightful conservatory connects the kitchen to the garden

There is a conservatory that connects the kitchen into the spacious, manicured garden which will be a wonderful retreat after a long day out at work.

Our friends at Chantries are marketing the property so why not arrange a viewing at the following website - https://www.rightmove.co.uk/property-for-sale/property-84614432.html

If you would like a chat about property prices in Guildford or want to discover where you will find your next residential or investment property in Guildford call 01483 320207 or email richard.hodgson@newman.uk.com

In the meantime why not visit https://instantvaluation.newman.uk.com/ to perform an online valuation for your home to discover how much it might be worth in today's market.

A fabulous house with a stunning outlook close to town

This is a modern home built in recent years but has the grandeur of a more established character property from former years. I like it because it is both stylish and practical situated in a curved terrace, built on 3 floors, overlooking a green with spectacular views over towards the town centre and Pewley Downs.

There are 4 bedrooms, 3 bathrooms and a large lounge area with a substantial kitchen with French doors leading out to a spacious conservatory, which then leads out into the garden.

This property is being marketed by our friends at Knight Frank so why not contact them to arrange a viewing now - https://www.rightmove.co.uk/property-for-sale/property-83775404.html

If you would like a chat about property prices in Guildford or want to discover where you will find your next residential or investment property in Guildford call 01483 320207 or email richard.hodgson@newman.uk.com

In the meantime why not visit https://instantvaluation.newman.uk.com/ to perform an online valuation for your home to discover how much it might be worth in today's market.

Railwayman's Cottage Designed for Modern Living

This wonderful railwayman's cottage was built at the time when the railway first came to Guildford and so has considerable character yet it has been completely refurbished, including a new kitchen.

I like it because it is located directly opposite the mainline railway station and so would be ideal for a couple busy commuting up to London and wanting a guest bedroom, or even a nursery if planning to start a family.

The property is semi-detached with 2 reception rooms and 2 bedrooms so would also make an ideal multi-let property for young commuters happy to share. There is an upstairs shower room which is unusual for a property of this type.

For further information please visit https://www.rightmove.co.uk/property-for-sale/property-59400522.html. If you would like to arrange a viewing please contact the agents Winkworths but please hurry as the property has been reduced in price and will therefore prove to be popular.

If you would like a chat about property prices in Guildford or want to discover where you will find your next residential or investment property in Guildford call 01483 320207 or email richard.hodgson@newman.uk.com

In the meantime why not visit https://instantvaluation.newman.uk.com/ to perform an online valuation for your home to discover how much it might be worth in today's market.

Are local amenities important to house buyers?

Local amenities can be a big pull for property buyers, so it helps to know which essentials they would struggle to do without. As a seller, the local area – and, more specifically, the local amenities in your area – are likely to form a key part of a prospective purchaser’s buying decision, which means it pays to be clued-up.

Research carried out recently has sought to shed some light on this very topic. Revealingly, house-hunters still like the reassurance of key local amenities being within walking distance of their homes, despite the increase in online alternatives in recent years.

The survey, which polled 2,088 people, asked respondents the following question: “When looking for a new home… Which, if any, of the following would you need to be within walking distance of your new home (i.e. within a 15-minute walk)?”

Unsurprisingly, a supermarket within walking distance was the most in-demand local essential, with 49% of those surveyed saying they would need a major retailer nearby to consider moving to an area.

Homebuyers were also keen on a local Post Office branch (26%), a train or underground station (25%) and a local pub (23%) being in close proximity.

Despite the rise of online shopping and banking in recent years, many people still like local essentials to be physically available. So much so, only a quarter (25%) of those surveyed said they were not too fussed if no local amenities were situated within a 15 minute walk.

The research also showed a number of differences by gender and age. Women, for example, were more likely than men to need a Post Office and a supermarket close at hand. By contrast, men were more likely to require a pub within a 15-minute walk.

A pub was, in fact, more important for those surveyed than banks, schools and places of worship, but this might have something to do with the demographics involved – including people without young children and those who bank online – and the increasingly secular society we see in the UK.

One of the best pubs in Guildford 

Furthermore, the findings highlighted, as expected, the different priorities of millennials (those aged 18-34 years old) and the baby boomers (those aged 55 and above). The over-55s were the most likely demographic to demand a physical bank and Post Office within a 15-minute walk of their new abode.

On the other hand, only 16% of those aged 25-34 years old required a bank nearby. What’s more, only 20% would demand a local Post Office nearby – with millennials less likely to have much call for stamps or the sending of letters and parcels.

The generational divide was also highlighted when it came to the demands for a train or underground station. While only 20% of over-55s saw this as a necessity, 38% of millennials – more likely to be commuting to jobs in town and city centres – said it was a key local amenity, second only to a local supermarket.

Local schools also caused a generational divide. Only 7% of over-55s, a demographic much more unlikely to have young children, required a school close by, in comparison to 28% of 25-34 year olds, an age when many people look to start a family.

While good local amenities are highly desirable, sellers who don’t have all the local essentials outlined above should not despair too much. There will be many other factors that will influence whether a buyer decides to purchase a home – the home itself, the street, and the immediate local area.

And, as the research showed, different people require different things. Some will want a local pub or a high-street branch of a bank; others will want to be close to a Post Office, an outstanding local school, good restaurants/nightlife or excellent transport links.

It’s impossible to be all things to all people, but luckily Guildford has many good local amenities, to shout out about including local supermarkets, several train stations and pubs within the town and out in the local countryside. If buyers know they can shop fairly locally and get to and from work with relative ease, your home is likely to become much more appealing.

It’s very far from a one-size fits all situation when it comes to property, but if you have good local amenities it would be a wise choice to make this a key part of your sales strategy.

If you would like to talk to us about property in Guildford please feel free to call me on 01483 320207 or go to https://instantvaluation.newman.uk.com/ to discover how much your property is worth today.

Create a new home in a delightful garden village

These properties do not come up to often but when they do they provide a great opportunity for either a new owner, or a developer, to bring them up to a modern standard in order to reflect their personality on the property. This is a three bedroom, 1930's, character, semi-detached house with views across to Guildford Cathedral.

Property with potential to extend

I like this property because it has a garage which could be replaced by a 2 storey extension subject to planning permission and is located in the very popular and sought after area of Onslow Village. This was not only designed as a garden village and has therefore its own unique styling but is conveniently located for the mainline railway station, Surrey University, the Royal Surrey County Hospital and the town centre.

This 3 bed house is being marketed by our friends at Surrey & Hampshire, in Godalming so why not contact them to arrange a viewing now - https://www.rightmove.co.uk/property-for-sale/property-63509145.html

If you would like a chat about property prices in Guildford or want to discover where you will find your next residential or investment property in Guildford call 01483 320207 or email richard.hodgson@newman.uk.com

In the meantime why not visit https://instantvaluation.newman.uk.com/ to perform an online valuation for your home to discover how much it might be worth in today's market.