Streetwise Property Alert 27th March 2014

Welcome to today’s email…

Licences – More News

We don’t know how long it will take but we are pretty sure that the BTL/HMO licence issue is going to run and run, with more and more councils setting up schemes. There will come a day, not too far off, when you will have to get a licence from your local council when letting – and if you have, say, 12 BTLs across the county, you will need up to 12 licences.

Milton Keynes looks set to be amongst the next area to introduce licences according to local press reports. Let’s quote, ‘Licencing of the private housing sector could help Milton Keynes Council track landlords not doing their job properly. Councillors said that licencing would put HMOS not up to scratch more accountable and they felt landlords could easily afford it themselves without passing the fees on
to residents.’ More to come. Much more.

Value-Adders!

A good article has come over from MortgageIntroducer.com – good site, pay a visit – on increasing the value of property.

Space Is Key

Converting a loft can add instant value to a house. It may seem like a large project to take on but the returns for a conversion can take a property from a two bed to a three bed, which is a strong move. Dependent on property type and location this can cost anywhere between £15,000 – £80,000. This type of conversion has the potential to increase the value of a home by 10 – 20 per cent.

Central Heating

A home must be fit for purpose when it’s sold. Adding or updating the central heating system will add more to the value of a property than it costs. It will be considered a crucial selling point by most buyers.

A Lighter, Bigger Space

People who are looking to build a conservatory have the right idea about increasing the living area in their household in order to increase its value. The cost of a conservatory will set a client back between £3,800 and £10,000; averaging at around £6,236.

A Lick Of Paint

Getting potential buyers through the front door is a key factor. To give the outside a few coats of paint could cost anything from £100 to £1,000 (size dependent) but has the potential to provide a 400 per cent return on the initial investment. Painting the inside rooms a neutral colour will create a minimal clean feel, while giving the potential home owners a blank canvas to build an image of ‘their new home’.

Window Of Opportunity

Changing the windows can also be a solid way to guarantee value increase. However, bear in mind the windows must match the general aesthetic of the property. This visual aspect should factor into the decision process in this case. New windows have the advantage of insulation and contemporary design, however if the age and originality of the property requires a certain style of window your clients should be wary of jumping straight in as they could end up with a warmer yet uglier home.

A Lighter, Bigger Space

People who are looking to build a conservatory have the right idea about increasing the living area in their household in order to increase its value. The cost of a conservatory will set a client back between £3,800 and £10,000; averaging at around £6,236.

The Kitchen

As a showpiece this is a priority room. For many people the kitchen has evolved into the family room where most time is spent. The typical spend on a new kitchen is £8,000 but a good quality kitchen can be achieved on a much smaller budget. If money is tight and a full refit is not in their budget, suggest they consider changing certain elements of the kitchen such as cabinets and furnishings to give it a fresh new look.

First Impressions

It’s good advice to touch up the paint work and the flooring in the main reception room. Whether that is the corridor leading through to the house or the just the first room buyers step into. Sellers should de-clutter and create a tidy and presentable first impression for visitors. Many buyers are looking to move into a house that is ready and functional with little refurbishment necessary.

Knock Knock!

It’s amazing what people notice when they are viewing a property. The front door should tell them what they need to know about the interior of the house. It can make a big difference for your seller clients just by buying a new doorknob, letterbox or stainless steel house number.

This article came from Mortgage Introducer.com. Do check out the site now.

London – Some Figures

A five year outlook from Savills makes interesting reading; it suggests inner London boroughs will see 23.1 per cent price rises whilst other London locations will rise by 22.7 per cent. ‘The gap between prime central London and its prime commuter markets has probably peaked and wealth has finally begun to flow out of the capital. We have already seen the predominantly domestic markets of outer prime London out-performing prime central London over the past year and anticipate that 2014 will be the year when the value gap between London and the lead suburbs and prime inner commuter belt finally begins to narrow. ‘

‘A number of risks to the prime London markets, most particularly around Eurozone default, have receded over the past two years. But because the taxation of high value property is likely to be a contentious policy issue in the run-up to the 2015 general election, a lull in price growth in the period prior to polling day is expected.’

That’s it, see you on Friday.

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