The property market in Leicester has shown incredible resilience during 2017. According to the national House Price Index (HPI), the average price of a property in the region was £217,859, an increase of 7.1% for the year to date and well above the national average of 5.2%. The results are even more impressive because the market performed well above average during 2016 as well, partly due to Leicester City’s astonishing performance, winning the Premier League during the 2015/2016 season.

The resilience of the Leicester market is in stark contrast to the rest of the housing market in the UK, which is coming under considerable pressure following the uncertainty of Brexit negotiations, the weak performance of the pound, along with the general lacklustre economy as a whole. To illustrate this, house prices in the North East climbed by only 2.5% in the same period and house prices in London, perhaps the place most affected by Brexit, actually fell by -0.7%.

Leicester is the place to be

It is clear then that the West Midlands and Leicester in particular is the place to be for people looking to relocate in the region. Considering Leicester’s central location, within easy reach of Birmingham, Coventry, Peterborough and Nottingham, and its reputation as a key transport hub and engineering centre, it’s not hard to see why.

Add in the fact that Leicester is a city on the move in its own right, with the region home to a number of chemical and pharmaceutical facilities along with Europe’s largest satellite manufacturing facility, Airbus Defence and Space. The city is well placed to expand business and increase exports post Brexit. This will mean large numbers of highly paid scientists and engineers looking for housing stock in the city, putting pressure on already tight supply and increasing prices further.

In fact Leicester looks to be one of the areas that will benefit most in a post Brexit world. To highlight this point, the Office of National Statistics carried out a survey which studied the effect on Britain’s property prices in the 12-month period following the EU referendum. The data showed that housing costs climbed faster in the East Midlands than any other area in the UK following the referendum, with an increase of 7.5% during the period compared to 5.1% for the rest of the UK. 

Brexit fails to halt East Midlands rental growth

It’s not just property price increases which are outstripping the rest of the UK. Rents in the region are also climbing above average due to a shortage of suitable housing stock. According to HomeLet, the UK’s largest tenant referencing agency, the average rental price for a property in the region climbed by 2.7% in 2017, well above the UK average of 1.4%. The average rent now costs £648 pcm.

The influx of younger buyers looking to rent, combined with a shortage of suitable housing stock in the region, shows that property investors and buy-to-let landlords should be able to maintain high capital growth and rental yields in the East Midlands for the next few years. Meanwhile, recent tax changes, the threat of rising interest rates and Brexit look set to hamper property investors in the rest of the UK.

Development plan is good news for investors

A chronic lack of suitable housing stock in the region is one of the reasons why the local property market has performed above expectations. While the government’s housing plan looks to solve this problem nationally, it still falls woefully short when affordable housing is considered. Affordable housing is one thing that Leicester is in desperate need of. While the Ashton Green development aims to add 20,000 new homes to the city over the next 20 years, it is woefully short of affordable housing options. Because of this, the demand for residential lettings is predicted to remain stubbornly high for the foreseeable future.

Despite this year’s impressive performance, property prices in the region remain accessible with the East Midlands and Leicester still offering exceptional value for homeowners and investors. If you would like to find out more about how Reliance Properties can help you find the perfect home or if you would like to sell your current home, get in touch with one of our local agents at Reliance Properties Leicester.

Guide to selling a property

Posted on November 25, 2017 in Sell

Selling your home can be a stressful experience; there are so many things that can go wrong, from not getting the price you were expecting to buyers failing to complete on time. It’s no wonder that selling a home is considered the most stressful experience most adults ever have to go through.

The good news is, with a little forethought, you can make the whole process pass much more smoothly. In this guide, we’ll share with you our nine-step process for selling your home quickly while still getting the price you deserve.

1) Find a reputable estate agent

You’ll have a hard time selling your home without an estate agent. The good news is today there are more options open to you than ever before. You can save money by choosing an online agent or you can go with a traditional bricks and mortar agent – no matter which decision you take, make sure you check references before making a final decision.

Any agent you choose should be honest and reliable. It’s a good idea to check with a few previous customers to make sure they behaved professionally throughout the entire process.

2) Prepare your home for sale

Now you’ve chosen an estate agent it’s time to prepare your house for sale. Start by giving every room a good clean. You should also declutter as much as possible; clutter makes rooms feel smaller than they actually are, so it’s a good idea to pack things away in cases. That way, you’ll be more prepared for the move and you’ll be able to sell your home much more quickly.

Don’t forget the garden! This is often the first thing people see when they approach your home, so you want to make a good first impression. Tidy it up as much as possible and plant a few shrubs if it looks a bit bare.

3) Obtain a valuation

Now your home is clean and tidy, it’s time to get a property valuation. We recommend choosing a local agent to obtain the best price because they will have information on the local market that many larger chains won’t have.

A word of advice: don’t just go with the highest offer, this is sometimes just the candy to get you to go with a particular agent. Research local prices beforehand to get a realistic price for your property before you obtain a valuation.

4) Get your paperwork sorted

There is so much paperwork involved in selling a home these days, so the sooner you get it sorted, the sooner you’ll be able to sell your home. It is a legal requirement for sellers to obtain an energy performance certificate (EPC) before putting their home on the market. You can obtain an EPC from an accredited assessor or we can arrange for an assessment for you.

It’s a good idea to read your EPC and make any suggested changes that don’t require much financial outlay to help improve your home’s energy rating.

5) Find a conveyancer

Now is a good time to find a good conveyancer: don’t leave this step to the last minute like most people do. An experienced conveyancer can help ensure the sales process goes smoothly.

6) Choose a good buyer

So your home is listed, you’ve had some viewings and the offers have started to roll in. The trick here is to choose a good buyer. This may not necessarily mean choosing the highest offer, although it helps.

The most reliable buyers are those that have already sold their home and are ready to move. Next, you should consider first time buyers or those seeking a second home, because they do not have a current home to sell. The least reliable group are buyers who have yet to sell their home. Select your buyers using these criteria and you’ll sell your home much more quickly.

7) Agree on what’s included in the price

Now you’ve chosen a buyer, it’s time to agree on what’s included in the price. You need to be specific here. Is the garden shed staying, what about expensive kitchen appliances and fitted wardrobes? Go through your entire home and make a list of the things you are taking with you and share it with your conveyancer.

8) Agree on exchange dates

Now we are nearing the end of the process, it’s time to establish a date for completion. It’s a good idea to create a calendar of your proposed exchange and completion dates and share it with your buyer. Such a document will not be legally binding, but it should help reduce delays during the sales process.

9) Keep communicating

Now we are at a critical stage in the sales process, so it’s vital that you keep communicating with the buyer. If something unexpected happens, and it usually does, make sure you make the other party aware through your conveyancer or estate agent.

Also, if you don’t understand something during the entire process, make sure you ask. Estate agents and conveyancers have been through this hundreds of times before and are here to help you through the process every step of the way.

Are you ready to sell your home? Reliance Properties can help. We offer a no sale, no fee contract and our experienced estate agents all have local knowledge of the Leicester property market. Get in touch with one of our representatives for a free property valuation today.

UK Property Market Report

Posted on November 25, 2017 in Landlords, Sell

The UK property market is constantly fluctuating and can be a difficult subject to understand. To make things easier, our property market report will help you understand the current property climate, whether it’s the right time to rent, and whether your home will be worth more or less right now.

The UK property market enjoyed a period of growth towards the end of 2017

The turbulent politics of 2017 left many homeowners and potential buyers wondering which way our property market would turn. And, according to the latest house price index as released by the Land Registry, the market has seen a marginal decline in recent months. Their statistics showed that the annual house price growth was at 4.5% in October, which showed a small decline of 0.6% from September’s statistics. This puts the most recent average UK house price at £223,807.

As you may have noticed, statistics can vary. However, because the Land Registry’s data is based on information from actual property sale completions as opposed to mortgage approvals or asking price data that has been gathered from online portals, it is the most reliable view of the UK housing market and its performance. This also means that the Land Registry releases its house price reports with a two-month delay.

Rental values have recently increased

In the more promising news, according to the JLL UK Property Index, rental values have increased by 0.6% over the third quarter (July, August and September). This has seen the first good annual rental growth figure of 2.2%, in the last five quarters. This is positive news for anyone who may be considering purchasing property for rent, or who may be looking towards renting out a current property.

How was the UK property market split?

The property market can have a large difference between the North and South, with London being the most expensive location to buy and rent property. According to the JLL UK Property Index Q3 (third quarter) report, London and the South East of England surpassed the rest of the country with a property return of 3.9% as compared to the 2.8% that the rest of the country saw.
 

What are the UK housing market forecasts?

As stated by the JLL residential forecast, the UK housing market is going to experience a slower state of growth than what has been seen over the last 20 years. Major factors in the increasing growth of the UK housing market included an expanding population, low-interest rates and the relative affordability to incomes. However, with these factors all plateauing, we’re expecting to see this reflected in the property climate. The UK’S decision to leave the EU will also factor into a weaker market.

Statistics have led JLL to forecast that 2018 and 2019 will see a marginal growth in the housing and rental market with a prediction of just 1% house price growth in 2018 and 2% in 2019. The rental market is expected to remain slightly stronger during this period, however, rental growth will also be weaker than expected at around 2% per annum. Interestingly, alongside other factors, this slow growth is predicted to also contribute to a stronger house price growth outside of the London and South East Region. This is exciting news for the rest of the UK and may see house prices begin to catch up to these more expensive areas.

What does this mean for you?

The current property climate and housing forecast will affect people differently, depending on their circumstances. As the next year appears to have a marginal growth in UK house prices as compared to recent times, but a stronger property rental market, investors are more likely to be inclined to buy to let, rather than buy to sell. This may also influence long-term tenant decisions, giving them an incentive to get on the property ladder and become a first-time buyer as house prices face smaller and slower growth. For homeowners who are considering in moving forward and placing their property for sale, this news shouldn’t affect their decision too much, as we can expect property prices to hover around their current prices, although the prospect of rental may now be more appealing.

Interested in finding out more? Whether you’re looking into letting, selling or buying property, chat with one of our friendly agents today and learn how you can benefit from our online estate agency.

ABOUT RELIANCE PROPERTIES

Founded in 2011, we are one of Leicester’s fastest growing Estate and lettings agents.

With a successful track record selling, renting and managing residential and commercial properties across Leicestershire.

Our mission is to sell and rent your property at the best price, as soon as possible. For a low cost-effective fee with no hidden costs.

CATEGORIES

CALENDAR

June 2018
M T W T F S S
« Jan    
 123
45678910
11121314151617
18192021222324
252627282930  

ARCHIVE