first time buyers Archives - Andrew Scott Robertson

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A quick look at the latest RICS UK Residential Market Survey (October 2023)

Posted November 10, 2023 by Lea Bailey

Every month the Royal Institution of Chartered Surveyors (RICS) releases its UK Residential Market Survey, shedding light on the current state of the housing market across the UK.

This blog post is brought to you by our Chairman & Managing Director, John King, FRICS, who offers valuable insights from his experience here at andrew scott robertson in Wimbledon Village. He actively contributes his comments to the monthly survey for the London region.

KEY OUTTAKES FROM THE FULL RICS RESIDENTIAL MARKET SURVEY FOR OCTOBER;

Residential Sales Market Insights

Buyer Demand
Despite challenging market conditions, there’s an improvement in new buyer inquiries, This indicates a more optimistic outlook compared to previous months.

Agreed Sales
While the net balance for agreed sales in October still reflects a challenging market (-25%) compared to this time last year, there’s a positive shift from figures recorded in August and September. What is evident is the timeline from agreed sales to legal completion, this has moved out from an average of 13 weeks to over 20 weeks. A cautious outlook for the remainder of 2023 and early 2024 remains on the cards as the cost of living continues to rise.

New Instructions
The flow of new instructions has begun to slow, as new year aspirations by vendors for a better market takes hold. However, with buyer demand still evident new stock coming to the market now will result in a flow of viewings if valued correctly.

House Prices
In October, the headline indicator on house price trends posted a net balance of -63%, when viewed across the country. Locally a much better picture emerges showing an improvement from previous months indicating between -5 to -10% is the achievement rate when set against current asking prices.

Lettings Market Insights

In the lettings market, tenant demand remains positive, although there’s a slight easing in demand compared to previous quarters. Landlord instructions have declined as rental levels have peaked contributing to a further reduction in listings, due to in part of landlords placing their properties on the market for sale instead.

In conclusion the lettings market has become a positive and safe investment over the years and this will remain to be the case for years to come providing interest rates remain no higher than their current level, this is underpinned by the build to rent market having stalled.

For more from the RICS UK Monthly Residential Market survey, you can download and read more 2023 reports here: https://www.rics.org/news-insights/market-surveys/uk-residential-market-survey

Please feel free to reach out to us for personalised advice and assistance in this ever-evolving real estate market. Find the right team for your needs here.

Regards,

John King, FRICS

A quick look at the latest RICS UK Residential Market Survey (August 2023)

Posted September 26, 2023 by Lea Bailey

Every month the Royal Institution of Chartered Surveyors (RICS) releases its UK Residential Market Survey, shedding light on the current state of the housing market across the UK.

Key outtakes from the full RICS Residential Market survey for August;

Mortgage rates putting pressure on house prices
House prices are facing downward pressure, and it’s evident that high mortgage rates play a significant role in this situation. For potential buyers, the cost of borrowing is becoming a significant factor in their purchasing decisions. The relatively high mortgage rates are creating challenges in affordability, especially in areas where prices had surged during the pandemic.

Tenant demand outweighs supply
In the lettings market, the RICS survey paints a more positive picture, with tenant demand surpassing the available rental properties. This shortage of rental properties is a significant challenge for tenants seeking affordable housing options.

Rental prices on the rise
Given the imbalance between tenant demand and landlord instructions, rental prices are expected to rise further in the coming months. This can pose challenges for tenants looking for affordable rental options.

The RICS Residential Market survey for August 2023 highlights a market under various pressures, including high mortgage rates affecting house prices and strong tenant demand in the lettings market. As one of the leading residential sales and letting agents in Wimbledon and Wimbledon Village, we are committed to assisting both buyers and renters in navigating these challenges. Our team of experienced property professionals is here to provide expert guidance and tailored solutions to meet the unique needs of our clients, we have dedicated departments within the business that can assist you.

For more from the RICS UK Monthly Residential Market survey, you can download and read the full August 2023 report here: https://www.rics.org/news-insights/market-surveys/uk-residential-market-survey

Please feel free to reach out to us for personalised advice and assistance in this ever-evolving real estate market. Contact the right department for your needs here.

Regards,

John King, FRICS

Tips for First-time Buyers – What is the difference between exchange and completion?

Posted February 7, 2020 by John King

If you have just had an offer accepted on your dream home, you might be breathing a sigh of relief. But don?t relax too much – there are a few more legal hurdles before the place is truly yours.

Anyone new to buying property might be confused by the process. So, if you?ve been wondering about the difference between exchange and completion, we explain what happens when you buy a home and what you need to do to keep things ticking along.

What is the difference between exchange and completion?

Put simply, exchange and completion are the two big stages in the house buying process.

Exchange of contracts is the point at which the buyer and seller?s solicitors or conveyancers do just that – exchange the signed contracts they have drawn up for they clients.

The buyer will also pay a deposit to the seller – usually 10% of the purchase price. At this point, the sale becomes legally binding and neither party can pull out without serious penalties. The solicitors will also agree a completion date.

Completion is the final point in the process, when legal ownership of the property is transferred to the buyer, the balance of the sale price is paid, they keys are handed over and the place is legally yours.

What needs to happen before I exchange contracts?

If you are buying property, the first thing you need to do after your offer is accepted is to appoint a solicitor or conveyancer, to act for you in the sale. They will get to work on the necessary property searches and paperwork to prepare for the sale.

It might feel like not much is happening at this stage. You can help speed things up by being proactive and communicative – the quicker you are at responding to queries, the faster the sale might go through.

The key things you need to do to get to the point of exchange are:
? Commission a professional survey of the property you are buying.
? Get a written mortgage offer.
? Check the terms of the contract, the lease (if a leasehold property), the results of the searches and any other relevant documents carefully and ask your solicitor about anything you are not sure of.
? Sign the contract and any other documentation and return it to your solicitor immediately.

Put your solicitor in funds for the deposit that has to be paid.

What happens at exchange?

Once all the paperwork is complete, the buyer and seller will sign identical contract documents and the exchange will take place. This will usually happen over the phone with both solicitors dating the signed contracts then mailing them to one another. If you are in a chain, each party in the chain will exchange at the same time. At this point the sale becomes legally binding and the exchange deposit is paid.

A completion date will also be set – usually this will be two to four weeks from exchange, although it is possible to complete on the same day, or much later. If there is no chain, you will have more flexibility around a completion date.

When exchange has happened, you are committed to buying the property. Should you wish to pull out now, for any reason, you are likely to lose your deposit and may be liable for other costs incurred by the seller – they may also sue you.

Once you have exchanged contracts, you should begin finalising your house move, confirming with the removal company and getting on with your packing. You should also contact the relevant companies to arrange to take over the utilities.

What happens at completion?

Once lawyers on both sides have completed their final checks, your solicitor will request any mortgage advance from your lender and transfer the balance of the purchase price into the seller?s solicitor?s bank account in return for the signed deed transferring the property to you. You will receive a phone call when the sale has completed and can collect the keys to your new home from the estate agent.

More than half of sales in England complete on a Friday – popular because it gives buyers the weekend to get the house organised and unpack. However, choosing a mid-week day can be beneficial if there is a delay for any reason – lenders will be open to sort out any issues, avoiding the risk of your being homeless over the weekend!
What happens next?

It is likely that you will owe stamp duty on the property. This is usually paid by your solicitor on your behalf, having collected the amount due from you in advance. Your ownership of the property is then registered by your solicitor at the land Registry.

If you are selling, It is worth organising all the paperwork for your sale as soon as you decide to move, including mortgage information, correspondence with solicitors, energy performance certificate guarantees and if applicable, service charge accounts, so it is easily found if needed.

If you are thinking of buying or selling property in the Wimbledon area, we?d be happy to help you through the steps you will need to take, and show you our current selection of properties. Contact us to find out more today.