Archive for the ‘Effingham Area’ Category

The newspaper you read will probably have an influence on whether you believe the Housing Market in the UK is:

  • performing better with the Brexit vote or
  • struggling and in decline because of the Brexit vote.

Either way, the market post 24th June 2016 (post Brexit) has been in “wait and see” mode and will probably remain in this state until the new year when there will be a decision on the High Court ruling which take place on 5th December and is expected to last 4 days.  It is the view of Sally Asling, Letting Director at SurreyLets that the Housing market will continue to remain in “wait and see” mode until article 50 is served and negotiations to exit truly begin.

So what is a “wait and see” market?

In real terms it means there is a lack of activity unless there is a real need to make a move. Death, Divorce being the two main ones in Sales and Job Relocation or being served notice are the two main ones in letting. If there is no driving need, people are just waiting to see how leaving the EU  pans out and what the market will do, and this of course becomes a self fulfilling prophecy: a general lack of activity leading to what feels like a market slump because it is slow. This aside, what is actually happening to House Prices?

As I write a week or so into November, the latest statistical information we can draw upon takes us up until the end of August 2016 just 8 weeks after the Brexit decision, which isn’t really providing enough of a time lapse to see how the housing market has been affected if it has at all. However, there are encouraging facts in this data that should restore consumer confidence especially if these trends continue which may serve as some encouragement for homeowners thinking of selling but whom are “waiting to see”

House Prices have been in continual growth in 2016

Housing market indicators for August suggested a period of relative stability during the month. House prices grew by 8.4% in the year to August, up slightly from 8.0% in July.Prices in the UK continues to rise with the greatest increase for the year being the East of England with a 13.3 annual change followed by the South East wit
h a 12.2% rise. England as a whole saw a 9.2 rise.
price-changesI accept that sales agreed, pre-Brexit were possibly just going through to completion, but this is still encouraging. No major price drops as a direct result of Brexit –  which I have seen claimed in some scaremongering newspapers.

Shortage of stock on the market

Its clear that up until June there was a lack of stock on the sales market. Looking at data for June 2016 and comparing it to June 2015  England saw a 32.2% drop in the number of units sold. sales-volumes-by-country

Overall, year on year, June 2016 shows a decline from the previous growing trend of properties being sold.

A direct conclusion therefore could be drawn that whilst there is not the volume of property as in previous years on the market, and therefore not so much competition for your home, this has kept house prices rising.

Housing Demand

In terms of housing demand, the volume of lending approvals for house purchases fell slightly in August compared to July, remaining at levels seen in early 2015. Home sales in the UK stayed stable between July and August but remain below levels seen in 2014, 2015 and before the stamp duty changes in early 2016. The Royal Institution of Chartered Surveyors (RICS) market survey for August reported falling new buyer enquiries over the past three months, with demand from buy-to-let investors falling more sharply than demand from first time buyers and existing owners.

Latest news from Zoopla – for KT24

Zooplas Z-index is the current average Zoopla estimate of home values in a given area, and the Z index report for KT24 is £1,034,686. Zoopla shows a month on month rising trend.

The average house price paid in the last three months 17 sales is £998,703.zoopkt24

Fun housing facts for KT24

Highest value streets Zed-Index
The Warren £2,122,830
Beech Avenue £2,096,434
Woodland Drive £1,996,802
Pennymead Drive £1,834,411
Lynx Hill £1,828,226
Highest turnover streets Turnover
Fearn Close 45.5%
Station Approach 42.9%
Tintells Lane 41.2%
Little Cranmore Lane 36.4%
Parkside Close 33.3%

SurreyLets keep a keen eye on what property values are doing in the area as whilst SurreyLets are not an Estate Agency involved in the sale of property, SurreyLets regularly consult with Landlords who which to withdraw equity on their buy-to-Let investments and assist Investors making smart decisions on their portfolio growth.

If you have a property to Let, are considering Letting out your property or would like help and advise in buying an investment property, Sally Asling would be delighted to have an informal, no obligation discussion with you. Please call 01483 282470 or e-mail info@surreyletsonline.co.uk

Data taken from the UK House Price index summery published 18th October 2016 from UK.Gov’s official statistics and from Zoopla.

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Despite it being a turbulent political year not to mention Brexit (oops I just did)  according
to Zoopla, house prices in Bookham and Effingham have increased in the last 12 months. Sally Asling, director of SurreyLets looks at the sales data.

The Sales market in Bookhamhousing-market

Property in the Bookham area has seen a growth of 7.47% in the last year  (Oct 2015 – Oct 2016)  which for the average Bookham property is an increase of  around £46,571
This is Great News for Bookham homeowners

The current average value is 668K whilst the average sold price is 615K . The average detached property in Bookham in October 2016 is 833K with the average Semi standing at 526K, Terraced homes at 430K and Flats averaging 294K

The Sales market in Effingham

Across the whole market there has been an increase though out the year. However over in Effingham, property prices have performed just a smidgen higher in pounds and pence, but the increase is is the same at 7.47%

Over the past year 24 sales have been agreed in this data catchment. The average value was 815K and the average sold price was £674K.  The average detached property has an average sold price of 981K, with the average Semi standing at 536K, Terraced homes at 525K and Flats at 437K

Rentals in Bookham and Effingham

Sally Asling – Letting Director at  SurreyLets states:  “The  average price for a 4 bedroom rental property in both Bookham and Effingham is in the region of £2500 – 3000pcm with 5 bedrooms reaching up to £3500pcm on average, however there is a severe shortage of stock in the Bookham and Effingham rental markets across all price categories which are effectively pushing rentals up.  Whilst the corporate market has slowed down, the slack is being picked up by the sheer number of people renting as they are self building or extensively renovating their own homes. If you are thinking of renting your property, SurreyLets are confident we can get you the maximum rental for your property in any price range.”

Forecast

Many people are concerned that the prices may dip following Brexit. However there are absolutely no signs of this in this areas of Surrey at the moment.

A trio of data from the NAEA suggests the UK is shrugging off the impact of Brexit with the housing market rebounding to pre-referendum levels.

There was a 16% jump in potential buyers in September, pushing numbers back up to levels not seen since June, while sales agreed rose by 12.5%, according to the National Association of Estate Agents (NAEA).Meanwhile, government figures showed the UK’s economy grew by a stronger than expected 0.5% between July and September, providing further support for the housing market.

Buyers and sellers appeared to have adopted a ‘wait and see’ approach immediately following the vote to leave the EU. The interest rate cut in August is thought to have helped boost confidence, as people expect mortgage rates to remain low for longer than previously thought.

Read more here

Data taken from the Zoopla Plus Website current as of 1st November 2016

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SurreyLets are pleased to be able to offer a three bedroom detached family home situated scfronton the boundaries of Ockham, Cobham and Effingham Junction.

The property is available for a Long Term let, is pet friendly and offers generous living accommodation and is on the market for £1275pcm

Lounge with wood burning stove, Dining Room, Fitted Kitchen, Utility Room and Downstairs Cloakroom, access to the single garage, Two double bedrooms, Generous Single Bedroom and a Family Bathroom.

The only appliance let with the property is the cooker which is electric as the property is not connected to mains gas. The heating is by electric radiators which do increase running costs, but is reflective in the rental being charged.

Externally the property has ample room for off road car parking, an enclosed garden area and is within a  woodland setting with no close neighbours.

Properties like this rarely come to market that offer excellent value for money and a long term prospect so early viewing is recommended.  Please call SurreyLets, the Letting Specialists on 01483 282470 or send us a mail to info@surreyletsonline.co.uk

SurreyLets are members of ARLA and the Property Ombudsman

 

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According to a recent report from the Association of Residential Letting Agents (ARLA), residential rental prices are higher in London and the South East than elsewhere, as shown in the graph below. While the UK average weekly rent in 2014 stood at £134, the figures  the South East were £144

ARLA average weekly rental

However, when we look at the commuter areas of The Horsleys, Effingham and Guildford, we see average weekly rentals more in line with the London rentals/ SurreyLets statistics would suggest an average rental for this area to be higher than the averages listed here.

The latest data from the Office for National Statistics (ONS) show a clear North-South divide in rents, with price growth much stronger in the South than in the North of England. Furthermore, price growth has accelerated strongly in London, the East and South East of England compared with a year ago. This may reflect the difficulty of getting on the property ladder in these regions, with high house prices and deposit requirements for purchasing property. This is pushing individuals into the private rental sector.

Arla Year on year rising rentals.

 

In 2015 people living in the South East spent  a fifth of their income on rental. However when we look at areas in definitive commuter belts  such as Cobham, The Horsley’s, Effingham and Guildford where rentals are much higher, this is believed to be closer to 25% eating into a quarter of disposable income.

Sally Asling, Lettings director of SurreyLets Ltd said

“These figures released from ARLA really do highlight the predicament that young people are facing regarding housing. In a recent blog I wrote about generation rent and the fact that people are just not going to get on the housing ladder until later in life.”

“This research clearly demonstrates the huge amount of rental being spent prior to purchasing which clearly puts a dent into what they need to be saving to raise a deposit for their home.

A person buying their first home in the South East  has spent an average of £57,000 on rent*

Its staggering to think that the average person in the South East will have spent an average of 57K renting before buying, even more staggering is this figure is closer to 90K if renting in London.

This is a massive amount of money when you think how much that could be worth if it were saved for a deposit on a home instead.

ARLA av spent on rent buying first home

 

*Assumes most people move out of their family home at the age of 18 and takes into account the average first time buyer age of 31.

 

The ARLA research, which is based on someone moving out of their family home at 18 and renting for 13 years, shows that in the north-east a typical tenant will have spent £31,300 on rent before they can buy, while in London the figure is £68,300. The figures, which were compiled with the Centre for Economics and Business Research, suggest that someone moving into rented accommodation in London today will spend an average of £91,500 on rent before buying their first home. A fifth of those renting now told ARLA they did not expect to ever be able to afford to buy a home.

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Searching for a property to buy in KT24? Stocks levels are at the lowest they have been in 2 years according to Rightmove. Sally Asling, Local property Expert from SurreyLets says she is certainly hearing this from my UK and overseas’ investor Landlords who are looking to buy but exasperated at the lack of local stock on the market.

Rightmove confirms that in January only 54 properties were listed in the KT24 (The Horsley’s and Effingham) sales market.  A slight rise from the 47 listed in seasonally low December. However compared with previous Januarys this is almost 50% less available property.  If that sounds quite dire for one of the wealthiest villages in Surrey, lets also not forget these numbers don’t take into account multiple listings which bring the reality down to 41 properties listed For Sale in January.

Screenshot 3

One local Estate Agent has stated that they have 12 properties on discreet marketing and another Agent has said one in eight of the properties they sell don’t officially launch on the market and are sold before to known registered buyers (although they go on the market at completion). Both of these statements will be influencing the available levels of property seen advertised on the Rightmove Portal and just reiterates the message that when one is moving to a new village, getting to know the agents personally and registering with them is of absolute importance. Right move has its place, but it does not negate the need for relationship.

In the peak of 2015, 122 properties were available, giving a lot more choice. So why is there such a shortage of stock now?

Are people waiting to see if there is a referendum this year?   Are people waiting to hear what house prices are doing? Are people waiting to see if the growth slows down?

So what about House prices?

House price growth in the UK increased to 9.7% in the year to January, up from 9.5% a month earlier, according to the Halifax. Halifax stated  the last time that figure was greater was in July 2014, when prices were rising by more than 10%. At the end of last year Haart Estate Agents forecast a rise of 10% and Savills suggested a more realistic 5%. In the Horsley’s and Effingham Agents are expecting to see sustainable growth between 5 – 7% over the next year.

The Horsley’s and Effingham are hugely desirable locations, situated in Surrey’s green commuter belt and nestled in areas of outstanding countryside. The local schools are all oversubscribed and purchasing close to chosen school is popular.

According to local leading Estate Agents; Curchods and Henshaws they sell more than 80% of stock that comes to the market demonstrating just how keen people are to secure homes in the area.

Screenshot  2

So which agents are selling the most in the KT24 area?

According to Rightmove, the breakdown of homes sold (agreed sales) during 2015 in KT24 is: 

(Please note: KT24 takes in The Horsley’s and Effingham and these agencies  cover a larger geographical area and these sales figures are limited to KT24 postcodes only, not the agents overall number of sales)
  1. Curchods 36
  2. Henshaw’s 35 (Horsley and Bookham office combined)
  3. Gascoigne Pees 24
  4. Wills and Smerdon  20
  5. Huggins Edward & Sharp   7
  6. Patrick Gardener 6
  7. Savills 4
  8. Others 20 branches a total of 27 but under 3 units each.

 

 

 

 

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If you are looking to invest in property and keen to make a purchase before the new Stamp Duty changes come into force for second properties in April, this property may be one you would like to consider.

Just on the market with Huggins is this link detached 4 bedroom property in Norwood Road. On the market for £549,950 the property is situated in the catchment for the Howard of Effingham School and is deceptively spacious, in many respects its an ideal Buy-to-Let property.

Working on an agreed price of £540K, I believe the property would see an immediate return of 4% gross if let at £1800pcm  and a 5% return if let at £2250pcm,  Sally Asling, Lettings director at SurreyLets states “£1800 is perfectly achievable, but in the current market of high tenant demand, there is every change of achieving closer to a 5% return here. The property appears to be well presented and almost ready to go. In my opinion this is one of the best properties on the market in this area currently for a Buy-to-let investment. I think its a property that will stand the test of time, and looking at the rise in prices in the area will see good capital growth too.”

The selling agent Huggins Edwards and Sharp describe the property as..

“A LINKED DETACHED FAMILY HOUSE originally constructed in the 1950’s and has mellow brick norwoodelevations beneath a pitched tiled roof. The property offers Reception Hall, Cloakroom, Lounge with fireplace opening to the Dining Room which leads into a good sized Conservatory and a fitted Kitchen and on the first floor there are four bedrooms and a family Bathroom. The garage has been converted at the rear to provide a useful separate Utility Room with appliances included within the sale. The property benefits from gas fired central heating to radiators, sealed unit double glazed windows and the current owners have purchased and installed solar panels on the roof to generate electricity. Outside there is a double width block paved driveway and secluded south westerly facing rear garden with paved patio and further barbecue area. An internal inspection is strongly advised to fully appreciate this property.

If you would like to discuss buying to let in this area, Sally Asling, Surrey Lettings director  would love to hear from you. As local property experts covering Lettings in Effingham, Sally and her team can advise you on all aspects of buying to let and on the letting process. Advice is free and without obligation.

To view this property please contact the selling agents  Huggins Edward and Sharp on 01372 457011 or by emailing  sales@hes-bookham.co.uk

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The Letting’s market seems to  be set on one speed. Steady and Continuous.

I am often asked what lets best. There used to be trends in the area where I could tell you a one bedroom flat in Guildford would let more quickly than a five bedroom house, or a family house in Horsley would let faster than a two bedroom flat in Effingham. Again, reality is making no sense of these trends. P1040634 (800x561)

Everything is in demand. Looking at the applicant register of pre-qualified potential tenants we have:

  • Demand for annexes and studio in all areas, particularly if they can include bills – budgets up to £850pcm
  • A demand for long term lets ideally 3 years with breaks effective after 2 years especially in family homes that are well presented. Excellent budgets.
  • A demand for short term lets of 6 – 12 months where the tenants are doing work to their own property and are looking to escape the dust. Not fussy about the condition and would rather something not quite meeting the decorative grade at a lower price.
  • Demand for 1 and 2 bedroom flats in all areas up to £1350pcm – above shops, purpose built flats – all kinds.
  • Demand for 3 & 4 bedroom family homes in catchments of feeder schools for the Howard of Effingham – budgets between £1650 to £3200pcm

Such is demand that there is absolutely no question that rentals are rising and that lets on average are getting longer. At SurreyLets our average is 25 months currently.

We pride ourselves on offering our Landlords a personal service that is professional and affordable. By not charging renewal fees, many Landlords feel they really get a good deal because they generally get a longer let through us by telling us of their plans and what they need to get from the Letting. For some Landlords this means a longer let, but for others it may well be a means of filling an empty home they are struggling to sell and need more flexibility. (Some tenants move in for 6 months to escape building work and are happy for the property to remain on the market for sale). In these cases we offer a fixed fee. Whatever your situation we work with you to get you the ideal tenancy and the ideal tenants.

  • So if you have a property sitting empty – we can help you earn from it
  • If you are considering investing – we can offer free, impartial advice to ensure you are being advised of the returns independently (never accept just the selling agents figures- they have a vested interest in the sale)
  • If you already let a property but are not totally happy with your agents from either a fee or service perspective – we would be delighted to show you what we can offer and share our positive client testimonials.

Call me, Sally Asling,  at SurreyLets on 01483 282470 for a confidential chat about how I can help you with your letting queries. My advice is free and without obligation.     SurreyLetsPersonal, Professional, Affordable           

Nest Egg front    untitled           Nest Egg Flyer

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