Eagle-eyed

Gary Berendt, Senior Property Consultant at Arlington & Hall takes a look at the property market.

Eagle-eyed property market watchers may have noticed a change. Certainly those in London will have seen a marked difference from a year ago. The market has done an about turn in favour of buyers. Fewer buyers and more properties available have changed the fortunes of purchasers. What does this mean for the market elsewhere? Well, often where London leads other areas follow.

In a buyers' market purchasers have more choice, negotiate harder and have the luxury of taking their time in finding a new home. There is no need for them to be rushed into quick action.
For sellers this new dynamic will create a different set of questions and decisions. Pricing will be key. So too will property presentation and condition. But one of their biggest decisions will be which estate agent to use. Some might not have sold a property for a long time and there have been many changes.  New options are available.
While there was a strong sellers' market low-cost online property listing companies sprang up to cash in when selling property was relatively straightforward. But now things will change. Simply listing a property on a property portal will no longer be enough. Each house or flat will have to be competitively and accurately priced, serious and motivated buyers will have to be found rather than fallen over, and once a sale has been agreed it will take experience and expertise to keep it on track through all the legal, financial and dependent sales complications that are an inevitable part of most property transactions these days. These all take time, tenacity and training - things that the bargain basement operators aren't well equipped for.
Of course one should always look for great value. But sometimes that does not mean the lowest price - or commission in estate agency terms. In estate agency good value means finding the firm that will get the top price from the best buyer, often in the quickest time. Anything else is of no value at all. In fact it is a false economy. It is hoping for the best and that has no place when it comes to selling such a valuable asset.
So if you are selling in what may soon become a buyers' market it is best to shop around and ask your estate agent what he or she will do differently in this different market. Ask what makes one firm better - not cheaper - than another. It is very easy to be the cheapest choice. It takes skill, expertise and sustained performance over many years to be the best choice.

Lucky You

Gary Berendt of Arlington & Hall finds lessons to be learnt from Olympic preparation.

The fabulous Rio Olympics remind us that dedication, natural talent, great coaching, relentless training, self-belief and a total focus on winning are what creates a gold medalist. 

Luck comes last on the list, for Olympians can’t rely on luck. Instead they have to depend on things they have control over. A 16^th century proverb says, ‘Diligence is the mother of good luck’. And it is diligence that wins gold medals. 

If selling houses were an Olympic sport who would you wish to represent you? 

An inexperienced, poorly trained, badly equipped person whose ethos is cutting costs and, in the main, relying on luck?  

Or, would you prefer a professional armed to the teeth with an impressive array of features, benefits, experience and training, all designed to help you get the most from your sale? 

Sadly there are lots of competitors entering the race for your business and offering cheap fees for a cheap service. 

Did the highly successful GB cycling team cut costs? No, it did not. It did not put top riders on their parents’ old bikes and then hope that everyone else in the race would get a puncture. Instead it invested in technology. It invested in training. It invested in people. It invested in success. No stone was left unturned in preparing to come first. 

Winning a gold medal can be a life-changer for the recipient. But it can never be left to luck. Too much is at stake. Winning at selling your property can be a life-changer too as your home is so much a part of your life. It provides shelter, it helps sustain your family and it helps you to build security and wealth. It helps you win in life. 

So, when you are deciding who will represent you in selling your home check out the competitors, weigh up their past successes, their experience, their desire to win and their complete disregard for luck - because the best make their own luck and that will be lucky for you.

Hexit

Arlington & Hall takes a look at the post-Brexit property market and offers some sound advice to those selling their homes over the summer months.

Most but not all home sales occur because the seller is moving on to another property. Yet time and again many sellers become focused on the sale rather than looking ahead to the move. The sale becomes the be-all and end-all when really it is just a part of the whole move.

Estate agents the world over will recall occasions in a declining or static market when a seller refused an offer from a reasonable buyer only to see the value of their property fall further over time, leaving them worse off than ever. In these situations sellers need to take into account the ultimate aim – the move.

In this immediate post-Brexit period it is perhaps too soon to determine exactly where the market is heading. But across the country in all but the hottest locations prices have steadied and in some cases declined.

This is a time for caution not for alarm and certainly not a time for digging one’s heels in over price. The smarter move is to understand that what one may lose on the swings one may gain on the roundabouts. That is, a negotiated sale brings the freedom to negotiate a great purchase, always bearing in mind that the ultimate goal is a life or lifestyle move to somewhere else.

Flexibility and pragmatism make the best selling strategy in this confusing market where there is a great deal of ambiguity. There is low supply but this doesn’t necessarily mean high demand. Interest rates are low but so to a degree is confidence. Also, buy-to-let investors and second home buyers have suffered a setback through rising stamp duty. So if your aim is leaving your home – Hexit – negotiation is the name of the game and, like the UK’s exit negotiations with the EU, there will be plenty of strong argument and posturing but in the end there will be a deal. It’s in everyone’s best interest.

Brexit Special

Arlington & Hall looks at how the referendum result could affect the UK property market.

Well now we know. Britain is leaving the European Union.  All the scaremongering is over and we will learn in the coming years which of the two sides was right after all.

But what will this decision mean for the property market in the UK?  In the short term perhaps not so much as one might imagine.  Those people who put off a house move until after the referendum will in time trickle into the market, driven in the most part by need.  But it might not actually be the referendum which will turn out to have had the greatest effect on the property market this year.  The real game changer might be tax - the extra stamp duty on second homes and buy-to-let properties, and the new tax burden for foreign buyers.

These Treasury measures are profound and have the potential to shift opinion and practice - if they haven't already done so.  It is hard to pinpoint exactly when the UK property market became so driven by overseas investors - many of whom may never set foot in the properties they own - and domestic buy-to-let investors benefiting from low interest rates and rising property values.

But now however there appears to be a slight move away from an investment led property market to one more driven by buyers needing affordable homes for themselves and their families.

We seem to be in a particular period of opinion change in the property market right now.  Tastes are different.  The growing numbers of retirees want youthful urban living with all the convenience it can bring.  New building materials bring cost savings and help the environment so there is an increasing demand for homes made from these materials and fitted with labour-saving technology.  Younger buyers are in general more reluctant to renovate houses than their parents were at the same age, wanting instead ready-to-move-into properties which give them more time to pursue their careers and leisure interests.

Of course our economy is the prime driver of the property market. But all things being equal we may come to see that the European question was not quite so influential on housing in the UK as buyers' desire to buy, builders' desire to build, lenders' desire to lend and - ultimately - politicians', planners' and the public's desire to make available suitable land.  In or out of the EU those desires have always had less to do with Brussels and more to do with us.

This Blessed Plot

Arlington & Hall finds evidence that not a great deal has changed in four hundred years when it comes to property investment.

William Shakespeare, who died 400 years ago last month, knew a thing or two about plots. And not just plots for his plays; he also developed an eye for plots of land and the buildings on them.

Part of Shakespeare’s genius was powerfully and colourfully exploring human nature in all its brutal, funny, frail, tragic and complicated guises. Over the centuries human nature hasn’t changed much so it is easy to imagine that the bard would have handled his property affairs today as he did four centuries ago. Shakespeare, it seems, not only had a way with words but a talent for investing in bricks and mortar.

In this he demonstrated a true understanding of the art of property. For instance he understood about investing in areas he knew well: his birthplace, Stratford upon Avon, and his workplace, London, where he invested in up-and-coming areas such as Bishopsgate, Blackfriars, Southwark, and what we know now as the Barbican.

Shakespeare really appreciated location. Although he did not coin the phrase, location, location, location, he certainly could have done, such was his appreciation for finding the ideal position for a home or a theatre. Shakespeare clearly understood that knowing one's market is key to successful investment in property. 

With his outstanding knowledge of human nature Shakespeare may well have proved a skilled negotiator by identifying strengths, weaknesses, opportunities and threats in people as well as the property market. And although he had a wonderful appreciation of history he must have had a very clear view on the future as well.

There were no estate agents in the early 17th century. They wouldn’t start to appear in the UK for another 250 years. So Shakespeare was on his own. Today you needn’t be. The housing market is so much more complicated now. So if you are moving home, buying to let or wanting that dream holiday home ask a well-established and reputable estate agent like us.  We have the know-how and experience. We will also care about you and your blessed plot.

After the Gold Rush

Arlington & Hall take a look at the property market now the rush to avoid a higher stamp duty is over.

It happens after every major budget change where extra tax costs are involved when buying a home. There is a stampede to complete purchases before the tax axe falls. Most notable was when double tax relieve (MIRAS - Mortgage Interest Relief At Source) was removed on mortgages for unmarried couples in August 1988. This resulted in an average of two years’ worth of transactions being squeezed into a twelve month period - and a sharp rise in house prices. Sadly it also heralded a slump in activity the following year with all the negative knock-on effects to allied areas of the economy. Governments should see these things coming, but they never seem to.

We have just witnessed a mini-stampede from buyers of second and buy-to-let homes pushing through their purchases before the April 1^st deadline when higher rates of Stamp Duty Land Tax (SDLT) were imposed - a hefty rise when one hadn’t really factored it in before the last budget or even if they had.

Of course, everyone in the industry could have anticipated this rush to complete purchases. In this area, at least, tax avoidance doesn’t appear to have the stigma that many other areas of this now-frowned-upon activity have.

But now comes the aftershock. Once again we can predict the outcome. Those who were serious about buying will have finalised their purchases. That leaves those who were not so serious. This group will take a little time to take stock and get used to the extra cost of buying - while some will decide not to purchase at all. This will leave a vacuum in the market for some months.

Nature and the property market don’t like a vacuum so a number of things will happen. There will be fewer motivated buyers and certain asking prices will come under pressure because of the extra cost of purchase. But the best bit is that for the first time in years first-time buyers should have a window of opportunity when there may not be so much competition from cash and/or professional property buyers. Given the low interest rates this then is the perfect time to enter the market for those with a deposit and an in-principle mortgage in place.

Every cloud has a silver lining. After the last gold rush this is the time for first-time buyers to strike it rich.

Not in the National Interest

Arlington & Hall goes beyond the hype and looks at what is really important in buying and selling a property this spring.

The property market is never static. But it is perhaps now at a unique juncture. It is hard to think of a time when the market was so politicised. Following on from last year's general election and the Scottish referendum in 2014 we now face the UK European referendum in June. No market likes uncertainty and on top of various recent tax changes - especially in the buy-to-let and second home sectors - these political events are certainly making some buyers and sellers wonder if they should wait for the dust to settle before moving.

But what if future events prevent the dust from settling? Perhaps after the referendum there will be something else to think about – a possible interest rate change, the US general election in November or some fresh global, economic or humanitarian crisis. The point is that our lives, although influenced by politicians, do not march to the drum of politics; they have their own rhythms - governed by personal events like leaving school or college, partnering or marriage, births, jobs, income changes, relocation, retirement, and - underlying it all - individual ambitions.

Some say there is never a perfect time to move home. But of course there is: it’s the time that is dictated by life. In or out of the European Union or despite what future events are in store we all have personal agendas that largely ignore national and international affairs as we seek to provide for our families and ourselves. We don’t move home in the national interest. We move home in our own interest - to fulfil our own ambitions. Despite what politicians may have us believe our own houses are rather more significant to us as individuals than either the Houses of Parliament in London or the European Commission in Brussels. So perhaps it’s best to forget politicians when it comes to moving home and listen instead to our hearts – and our financial advisors.

Budget 2016

Arlington & Hall takes a look at this year's spring Budget and wonders how it may affect the property market.

I suppose that the 2016 Budget was never going to be too contentious or radical in view of the upcoming European referendum in June. Certainly there was little mention of housing in the Budget. Perhaps the Chancellor felt he had done enough recently by additional tax to buy-to-let and second homes - creating the current storm of activity in the property market from those attempting to beat the tax axe and complete purchases before 1st April.

But other areas of the Budget do remind us of the effects that economy and infrastructure have on the housing market. For instance by creating better road and rail networks local housing receives a boost in demand. But major rail schemes like High Speed 2 and 3 in the Midlands and the North and Cross Rail 2 in London, and road route improvements such as a Pennine tunnel are very long term, and the beneficial effects on house prices will take a great deal of time to make themselves felt.

Yet we don't need these huge projects to influence housing at local levels. House owners and buyers should always keep a close eye on smaller local schemes and improvements. Changes for the better in transport, jobs, education, business and health have an immediate and positive influence on the demand for local housing both in the rental and sales sectors - evidence  a good state school has on housing within its catchment area.

As a well-established estate agency business with its roots in the local community and with long-held local knowledge and deep understanding of regional affairs, we can always point buyers in the direction of those areas due to benefit from modernisation and improvement. This knowledge makes property investment in these areas potentially more beneficial as an appreciating asset than other long established, popular and sought after locations.

The Chancellor may not have done much directly to or for housing in this Budget. But other measures he has made will have a significant effect over time.

In or Out?

Arlington & Hall looks at whether it will be best to opt to stay in the market or to come out.

Should we stay or should we go? It is a very difficult question to answer. There are so many factors to take into account. What will happen if we stay where we are? What new opportunities might there be if we move? But if we stay put at least we know where we are. We have become used to it. Of course there are faults - many of which need to be fixed over time.

The neighbours are reasonably friendly and do look after us a bit. We are secure here and they do keep out some not-so-welcome guests. But the neighbours can also be taxing, do not always see things our way and often try and tell us what to do. Next door are always good for a fine meal and a great bottle of wine. But they grumble a lot and never seem to be happy. Next door but two are in a huge place, run things like clockwork, and often seem to bail out our more cash-strapped neighbours which is nice of them. But over the years we have on occasion not always seen eye-to-eye and have had some major arguments.

Of course if we do move it doesn't mean our neighbours won't move away themselves over time. So the old place may not stay the same whether we leave or not.

Then there are others in our own family to consider. If we do move some might not want to move with us, but would rather go in their own directions making our family smaller. Do we want that?

Moving could mean finding ourselves in an isolated place. We would have to make new friends, many of whom could live a long way away.

Online or High Street estate agent - a viewpoint illustrated by my LinkedIn newsfeed!

Whilst scrolling through my LinkedIn posts this morning, two caught my eye. They are at the bottom of the page. 

Originally, it made me smile because of the placing of the two updates on my 'newsfeed'. In case my screenshot skills are somewhat sub-par, and for ease of reference, the first of the two updates is an 'online' agent posting that they 'SOLD' a property (sale agreed? Sold?) at 21.13 'tonight' (Sunday night) when all other high street estate agents are closed. Fantastic no? Yes - but I'll come to that later. Closed, but should still be working, so a moot point. 

The second of the two updates, immediately following this, showed a traditional, high-street agent agreeing three properties before being released to the open market. Also brilliant, undoubtedly.

However, high street agencies can perform both of these accolades, but not online agencies.

Let me expand. We have done both examples recently, and I'm not blowing my own trumpet. Poole, BH13 AND BH14 is filled with several very good estate agents and I'm sure many of my contemporaries have similar examples.

On the top example, agreeing a sale out of working hours really shouldn't be shouted from the rooftops as much as it is. Why? Because, the way I see it, that's my job. I've agreed sales before on Sundays, Bank Holidays, and even on New Year's Eve (an asking price offer a couple of years ago!). And, as I said above, this isn't an 'I'm so great at my job' post. Any decent high-street agent you invite to value your home should be able to give good examples of when they went above and beyond to sell your home. That's simply part-and-parcel of agency; we work harder to sell your home, estate agents have to work for their fee, especially in the face of competition. We're not idiots, we know that, but equally, the 'competition' really does not work as hard as a good high-street agent will in selling your home. But it's a complicated job, and don't believe otherwise. You really do get the service you pay for; I'm afraid that's just how market forces and economics work. But, I digress. On to the bottom example!

The bottom example is a high-street agency, represented across the UK, selling 'all three properties' (perhaps a new development?) before being exposed to the market. Again, well done, unnamed agent. Again, ultimately what we're all in the industry to do, so no great shakes there, but it's nice when it happens, isn't it?

Well, I say we're all in the industry to do it, but would high-street agencies struggle at this?

To give a relevant example - I recently agreed a sale that fell into both camps. It was a property that had not been released onto the open market, and agreed on a Sunday evening. It doesn't matter that our agency office was 'closed', it really didn't. I'd formed a rapport with our potential purchasers, known to us, and led them on a journey in the local market, showing them suitable properties that fit their criteria. They also had my mobile number (again, it's just part of the job). So when I originally made the call to them out of working hours about a property (this one!) that hadn't yet come onto the open market, they were pleasantly surprised, and I mentioned it fit their criteria and what they were looking for well. Therefore, when they returned my call after viewing it on a weekend evening, I was understandably pleased but not overly surprised!

A call then went out to my vendor-client, and after some to-ing and fro-ing, as often happens in the situation, a satisfactory figure was reached that both sides were happy with. The property hadn't yet been released onto the open market, and was agreed out of working hours on a weekend. So we had fallen into both camps.

Now, think about it. We can sell your property out-of-hours. We know the local market innately, know the properties on the market, how they compare to each other, know our buyers, motives, reasons for purchase and for sale, can match up buyers with suitable properties, can suggest off-market sales to suitable buyers, and any good agent worth their salt can 'create' business by putting together someone potentially moving house with their dream property that has just become available. Not to mention dealing out of office hours. We do all of this as a matter of course (and as said, most GOOD agents in BH13/BH14 should do the same).

Would an online estate agent do the same?

We are liking the increasingly light evenings inviting us out on the water for a quick sunset paddle board!

With sunset around 6 pm and increasingly light evenings we are looking forward to being able to fit in a quick sunset session of paddle boarding aft

Augustin Hadelich playing Tchaikovsky at the Lighthouse in Poole Wednesday 17th February

Don't miss 2016 Best Classical Instrumental Solo Grammy winner Augustin Hadelich playing Tchaikovsky's Violin Concerto at the Lighthouse in Poole tomorrow evening!

http://lighthousepoole.co.uk/3077//3312

Top Ten Things To Do in Poole

Are you looking for new things to do in Poole? Whether you have lived here for a long time or not, it might be worth looking at TripAdvisors list of "The Top 10 Things to Do in Poole 2016" for inspiration. Our favourite is the Studland Beach walk with views of Old Harry.

https://www.tripadvisor.co.uk/Attractions-g190727-Activities-Poole_Dorset_England.html

25 Trending Interior Design Ideas in 2016 according to Houzz

Check out 25 Trending Interior Design ideas in 2016 according to Houzz! We particularly love the heated entryway floors.

http://www.houzz.com/ideabooks/58454857/list/25-design-trends-coming-to-homes-near-you-in-2016

The February issue of Dorset Society has arrived at Arlington & Hall, come in and get your free copy!

The Right People for the Job

Arlington & Hall gives some timely food for thought to those thinking of selling their homes this spring.

The belief that roughly 20% of producers are responsible for 80% of production has been widely held for over a hundred years. It is called the Pareto Principle.

It is just as valid when selling your home. Roughly 20% of estate agents handle 80% of the sales. So the first thing you need to know when putting your property on the market is which are the top 20% firms in your area. Nothing is more important than this. Employing a lesser firm effectively means your property will become a bottom category seller.

Less effective firms in the 80% group almost invariably include those that offer temptingly low fees. However there is another widely held principal that if something sounds too good to be true then it probably is. There will always be those who choose their estate agent on low up-front cost. But how sensible is this? Savvy sellers choose their estate agent on the basis that great contacts, extensive marketing, well-developed negotiating skills and sales management, prominent offices and long histories of success may well help them secure a higher price for their home and to a better buyer.

Cut-price estate agents seem to have just one selling point - they are cheap. Well cheap is okay for a wear-once piece of clothing or household basic from a discount store. But cheap is not good in surgeons, dentists, stockbrokers, lawyers and parachute manufacturers. Nor is it good in estate agents. To sell your most valuable asset wouldn't you rather hire the best people than the cheapest?

So if you are thinking of selling your home this spring it is worth weighing up what an 80% group agent may save you in commission against what a 20% group agent could well gain you in the price of your property, saved time and peace of mind. The choice is all yours but remember what ace oil rig fire fighter, Red Adair, said, "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur"!

A warm welcome to Stephanie!

We would like to welcome Stephanie to our team, as Administrator. Originally from Sweden and after a career in yachting, she is thrilled to have recently moved to the beautiful Dorset coast where the closeness to the sea and the outdoors is very much a way of life. Having been lucky enough to experience many unique parts of the world she feels Poole has the best of everything, ranging from inspiring architecture and property developments to immaculate beaches, great restaurants, a large yoga community and loads of water sports. She is also conversational in several languages; fluent in Swedish, French and English, as well as confident in Spanish and Italian. We hope she settles in nicely here with us and in her new home.  As our Administrator, Stephanie will be a client’s first port of call in the office as well as organising behind-the-scenes at Arlington & Hall. She is available on 01202 744 944 or steph@arlingtonandhall.com.

January Price Reduction!

This beautiful apartment has now come down in price to £569,995 - a very realistic selling price for a superbly finished property on the Sandbanks peninsula.

Three double bedrooms, two bathrooms, and a full regime of enhancements has been carried out throughout, forming this terrific space that effortlessly blends modern design and traditional home comforts.

Call us today for a viewing on 01202 744 944.

Happy New Yera (and year).

Gary Berendt of Arlington & Hall offers some thoughts on the property year ahead.

Welcome to 2016 and to a new era of property. It promises to be an eventful-packed year. The way has already been prepared for a change in April when higher stamp duty rates are applied to properties bought for either buy-to-let or second-home purposes. So, expect a busy time in the next few months as buyers rush to complete purchases before the axe falls. Already, buy-to-let purchases are near their pre-crisis levels and the Chancellor may well tighten up lending criteria to stave off any potential problems down the line - 2015 saw buy-to-let borrowing at £38 billion compared to £45.7 billion in 2007. Mr Osborne will further affect landlords as from April as when they will also lose higher-rate tax relief on mortgage interest payments.

And what is happening with the ripple effect - the radiating waves of consequence that the London property markets have on housing elsewhere in the UK? London now seems more disconnected than ever from the rest of the country as prices have spiralled from highly expensive to pretty much unaffordable over the last few years. And don't think for a moment that the 'unaffordable' tag does not affect the super- and even ultra-rich. It really does. Prime London properties are seeing a significant negative adjustment as higher taxation, the slump in worldwide oil prices and the Chinese economic slowdown have had a severe impact on the clamour for property. Perhaps the circus has left town as buyers now consider New York to be the darling of high-end residential property investment.

So, what about those who do not want to buy a holiday home or investment property - those people who merely want a roof over their heads? Well, 2016 may be eventful-packed for them also including the possible lift in house prices of between five and eight percent. But it will be a slow and frustrating start. 2015 saw ten straight months of selling instruction decline. The stock of unsold properties is currently the lowest ever recorded. The law of supply and demand suggests this should have a positive effect on prices in many parts of the UK. Like global warming, the UK housing market is open to conflicting interpretation. Is it the lack of new homes which is causing the log jam or is it that people have just stopped moving for the time being and are staying put, perhaps busy building extensions or digging basements to provide more space instead of buying somewhere larger? Maybe it is loft conversions - people moving up, and not out. For now, it is hard to know the true position.

It is also difficult to work out what any long-anticipated interest rate increases will do to the property market should they be introduced, or what might happen if the UK heads for the Brexit following the European referendum. Even if there is a vote to remain in the European Union, the uncertainty may well spook the property market for a few months - if the last General Election and the Scottish referendum are anything to go by. Heads will also be turned by the Olympics in Brazil in the summer, and all the while political and economic upheaval in the rest of Europe, and further afield, will create further uncertainty. All of these things have previously affected the property market, in one form or another, and we expect their current iterations to continue to do so.

So, 2016 will not be without its challenges in the property market. But, we are used to handling challenges for our clients. Our advice, as always, is to purchase carefully and within your means - and this includes your mortgage if interest rates rise. This year will not be a perfect one for property speculation without the greatest prudence and care. But it will be a good year for settling into a home that provides safety, warmth and shelter for you and your family in these uncertain times. Whatever is going on in the world, any year is a good year to do that.