5 years ago… Home Improvement Trends of 2007

Has a lot changed since 2007? We took a quick peek back at the home improvement trends of 2007, which included the housing market, buy-to-let, DIY and eco-friendly homes.

2007 saw more people than even get bitten by the by-to-let property bug, whilst other homeowners thinking of selling their properties were confronted with the HIPS pack for 3 bedroom houses. Average house prices had risen 156% in the last ten years and homeowners were adding extensions and conservatories to increase their homes value even more.

One report predicted the average house would cost £300,000 by 2012, despite December seeing a third consecutive fall in house prices, signalling, some said, an end to the property boom.

Rented homes were already in great demand as the cost of buying a first home or a larger family proved too much for the British public. This fuelled the by-to-let market as properties were snapped up and consequently let by a growing army of private property investors.

DIY was as popular an obsession with the public as it had ever been. The previous 5 years had seen a steady increase in 'handy women' with Tesco reporting it had sold 21,000 pink tool kits last Christmas.

The flip-side of the coin was increasing numbers of young professionals without any DIY skills, and a culture of 'call in an expert' for even simple tasks was evolving.

Eco-friendly interiors was surely one of the hottest topics of home improvement as house builders started incorporating natural materials like lambs wool insulation. The revolution was truly underway as energy saving lightbulbs were snapped up, although much more was achieved by simply turning the heating down a agree or two and switching off lights when not in a room.

Finally, the 18-24 age group surprised us by getting increasingly green-fingered as Britons spent an average of £180 each on sprucing up their gardens. However, those obsessed with 'keeping up with the Jones' ended up spending ten times as much as last year on landscaped gardens and even driveway turntables.

2007 also saw us launch Loft Quoter - an instant online loft conversion quoting website, joined our growing family of 'Quoter websites. It's regularly updated with the industries latest prices and can still offer free online quotes, whether your attic is traditional trusses or the more modern W shaped trusses in construction.

This story first appeared in our weekly homeowner newsletter dated 6th February 2012. Click here to read the full newsletter, which also included a round up of the weeks top home improvement offers.

Feature - Buy to Let update

Feature - Buy to Let Update

In the current financial climate, purchasing, renovating and selling a property is no longer viewed as an easy way to get maximum profit. For the first time in years, the property market has stagnated in some areas, and even gone down in others, causing homeowners and property investors to re-think their game plan.

Buying a property with the long-term view to let it out has now become one of the most solid ways to make a significant profit.

According to Paragon Mortgages, buy-to-let mortgage specialists, the buy-to-let market is still going strong as April’s figures revealed that the average rental charge is now £11,886 – up £250 on the previous month. Many investors are capitalising on what is currently a cautious property market by snapping up repossessed or dilapidated homes and refurbishing them in a matter of weeks – ready to be rented out. However buying a property with the intention of letting it out is not as simple as purchasing your own home and there are a lot of things to take into consideration.

Here are five top tips to getting a secure foot on the buy-to-let ladder:

1) What’s happening in today’s market?
In 2006, around 330,000 buy-to-let mortgages – worth £38.4 billion – were taken out, according to the Council of Mortgage Lenders, more than eleven times higher than the late nineties. And today the market continues to boom into the billions.

Despite the recent slow down in the property market in the wake of the credit crunch, the majority of buy-to-let landlords are optimistic about their prospects in 2008, according to a recent report by Alliance and Leicester. The report found that 77 per cent of landlords claim to be making a significant profit from their investments in the buy-to-let market and that there is a particular air of ‘positivity’ in central London, where landlords expect rental yields to be up to four times higher than that of buy-to-let properties in the rest of the South East.

The Association of Residential Lettings Agents (ARLA) claims that around 46 per cent of buy-to-let investors plan to add to their portfolio of properties during 2008. And buy-to-let doesn’t just have to be a word associated with investors, it can be an excellent pension opportunity for anyone looking towards the future.

2) Research, research and … research!
If you’re thinking about purchasing a second or third house as an investment, don’t base all your buy-to-let opinions on what the national press has to say – every town and city is different. A good tactic to get the ‘low-down’ on the buy-to-let market in your area is to approach agents as a potential tenant – this may produce a less biased view of local market conditions plus you’ll get an idea of rental income, how long certain homes have been on the market and which are the most desirable parts of town.

Keep an eye on the local media – property hot-spots can change as the area evolves. For example, finding that there has been a spate of burglaries or that there are plans to build a new bypass through the nearby woodland can have a huge impact on property value. On the other hand, plans for a new school or potential employment opportunities can the boost the appeal of a place to the potential home-seeker.

Don’t forget that the buy-to-let market does not simply revolve around London and the most expensive doesn’t mean the best. Plenty of towns outside the ‘Home Counties’ offer reliable rental returns. Birmingham for example holds only 11 per cent of rental accommodation, yet with 23 per cent of the workforce aged between 18 and 30, it is a clear rental hotspot.

In short, what you're looking for are places with a large, young, working population and a shortage of rental accommodation. However it is a fact that buy-to-let investors who purchase property within a few miles of their local area tend to prosper – if not from an increased income then from reduced traveling and eased stress levels!

3) What do I need to do to get on the ladder?
Before you start looking at properties you need to decide how much you’re willing to spend, taking into consideration your new rental knowledge for each area. Traditionally buy-to-let lenders want rent to cover 125 per cent of the mortgage repayments whilst many also require a 15 per cent deposit in order for a mortgage to be agreed. If you’re looking for advice rather than simply signing up to a mortgage deal there-and-then, consider speaking to a specialist broker in the buy-to-let field. Asking someone for information doesn’t mean you have to use them and they may even stop you from making a costly mistake.

Another important decision to make before you start is whether you intend to manage the property and tenants on your own or whether you’ll employ a letting agency to do the leg work for you. If it’s just the one property that you’ll be looking after then it may well be manageable after work and at the weekends – but make sure you’ll still be willing to give up your spare time at the drop of a hat.

4) Occupied and unoccupied running costs
One of the main financial issues to factor into any budget is the damage caused by tenants, which incurs an average cost of £1,360 a year. Tenants don’t even have to be destructive to cause this damage as most properties will require redecorating or refurbishing at the end of tenancy periods especially as, according to Themoneycentre.com, 24 per cent of tenants stay in the same property for more than two years. All it would take is for the boiler to break down and you’re looking at maintenance costs which could run into thousands, so make sure you’re financially prepared.

When a property is unoccupied it’s not just the mortgage repayments that you’ll have to cover out of your own money. Other costs will include council tax, tenant advertising and TV licensing – all of these costs bundled together can add up if the unoccupied period runs into several months.

5) Important things to watch out for
If you’re a fair and responsible landlord – or landlady – then you’ll be providing the best possible chance of keeping your tenants happy, which reduces the likelihood of an unoccupied house for long periods of time.

There are a number of health and safety standards – for gas and furniture for example – which, if followed correctly, should protect you legally against residing tenants.
Regulations regarding fire-resistant furniture are strict in rental accommodation and all items in the house must meet the guidelines set under the Furniture and Furnishings (Fire) (Safety) Amendment Regulations 1993.

Any items that contain upholstery, and could be used inside the property, should be checked, including beds, headboards, mattresses, sofa beds, cushions, pillows, etc. Items that are exempt from this legislation include sleeping bags, duvets, pillow cases and blankets, carpets, curtains and all furniture made before 1950.

Like any investment, buy-to-let comes with no guarantees, but if you do your homework on the area and its typical rental incomes, and make sure you’re a reliable landlord, then there are no obvious reasons why you shouldn’t benefit from many years of steady income. And, just think, a few years down the line you’ll then be the owner of an extra property which will finance a very comfortable – or exciting – retirement!.

*Taken from our last monthly newsletter to over 230,000 home owners. To receive our free newsletter, click here. You can unsubscribe at any time.

Buy-to-let: how to make your property most appealing

Buy-to-let: how to make your property most appealing to the rental market.

Getting a foot onto the property ladder is becoming more difficult so a growing number of people are looking to rent – and with new regulations announced this month affecting capital gains tax for landlords, the buy-to-let market looks even more appealing to investors. Here, Mark Cooper, Managing Director of homeimprovementquotes.co.uk, looks at how to make your property most desirable to the rental market.

What’s new in the rental market?
The announcement from the government this month, that capital gains tax is set to decrease for landlords, has made the rental market look more promising for property investors. Buy-to-let investors will pay just 18 per cent in capital gains tax – down from 24 per cent last year. Rented homes are also in high demand as families are struggling to get onto the property ladder. The shortfall of good quality family homes for rent is noticeable, especially since the introduction of HIPs earlier this year. So how do you make your property more appealing to prospective tenants?

Identify your tenants:
Your main aim when decorating your buy-to-let property is to appeal to as many different tenants as possible, but it helps to have an idea in your mind as to the type of tenant you want to attract. The type of house you are letting will limit the options – obviously you’re not going to let a studio flat to a family of four – but consider the options when decorating. A young professional will be looking for a clean, modern space without too much fuss or clutter, whereas students may be willing to settle for a less modern house – however they will usually need it to come fully furnished. If you are letting your property to a family, it is worthwhile remembering that they probably have plenty of their own belongings so will only need the basics – cooker, washing machine, fridge/freezer etc.

Keep it simple:
Magnolia and white may seem like a bland colour scheme, but it is by far the safest option. You don’t want to put tenants off with outlandish colours! The more neutral a property is, the more tenants can personalise it with their own items – rugs, cushions, paintings – and then when the next tenant arrives, they can do the same. Remember you are not decorating this property for yourself, so you don’t have to like it! If you think it’s boring, it’s probably the perfect rental décor.

Not only will white and magnolia appeal to the most tenants, it is also the cheapest option – a litre of white paint can cost as little as five pounds! If every room in the house is painted the same colour, it is also easy to touch it up if it starts to look tired or to add a new coat between tenants. Matt emulsion is the cheapest option, but is probably best for use on ceilings as it marks easily. Soft sheen paint is slightly more expensive, but is more durable and easier to keep clean – best for use on walls.

Always go for white:
When it comes to fitting a bathroom in a rental property, always go for white – not only does it look clean, modern and fresh, it is also the cheapest option. A brand new white bathroom suite comprising bath, basin, toilet and taps can cost less than £500 and is one of the main things on a tenant’s checklist. An old-fashioned or coloured suite could make the difference between a potential tenant choosing your property or someone else’s. Most people will also consider a shower to be a standard requirement, but don’t worry, these can cost less than £50 and are easy to install. Remember to stick to the basics in the bathroom – most tenants only want it to be functional and are not worried about luxuries such as heated towel rails or Jacuzzi baths, however much you’re tempted!

When it comes to tiling the bathroom, don’t ruin all of your hard work going minimalist by choosing dark, overbearing tiles. White tiles can cost less than seven pence each, and it’s really not worth spending any more. Plain white tiles look clean and fresh and will complement almost any suite – it also means that tenants can put in any of their own bathroom accessories like towels and bathmats, without having to worry if they match!

Pay attention to the floor:
It’s no good having a fresh looking house if the carpets date back to the seventies! Recovering the floor doesn’t have to cost the earth and will make such a difference to actually letting the property. Plain cream carpets start at less than four pounds per square metre, but may not be practical for every room in the house, particularly if the front door opens directly into the lounge. Muddy boot-stains are the last thing you want on a brand new carpet! Laminate flooring is easier to keep clean and starts at less than six pounds per square metre. It can also be fitted anywhere throughout the house, except in the bathroom – this would probably be best carpeted, as tiling or lino can be cold! Tenants are unlikely to pay a higher rent for extras such as underfloor heating or luxury carpets – again it’s better to stick to the basics.

Furnishings:
Most tenants will expect rental properties to be let unfurnished – however students and some young professionals will need furniture. With students especially, it’s not worth spending a fortune – things will be spilled on it, it won’t be taken care of properly and you’ll lose out on costs. Remember students and other tenants won’t treat it like their own furniture because it’s not theirs – it’s yours. It is a good idea to take a deposit for all the furniture at the beginning of the lease and make sure you keep a record of what state it was in at the time – that way, at the end of the lease, you will know how each item has fared!

If you buy all of your furniture from one place, you may receive a discount or qualify for free delivery. Some furniture shops offer what is called a “rental package” which contains everything you need to furnish a home – beds, wardrobes, cupboards, sofas, chairs, dining tables etc. When choosing a package, again be mindful that you only need to provide the basics – tenants can add to your furniture with their own. You don’t need to provide fancy side-tables or CD-racks – these are optional extras which tenants can buy themselves. If you are letting to students, remember that they will need slightly different furnishings – desks and bookshelves are extras which may not apply to regular tenants.

If you are planning to let your property unfurnished, you will still be expected to provide the basic appliances. It’s worth shopping around for these as some stores offer discounts if you buy more than one appliance at the same time and again, some offer “rental packages”. It is at your discretion which appliances you consider to be a basic need, but a cooker, washing machine and fridge/freezer are a must! Some tenants will ask for a tumble dryer, but most won’t be put off by the fact that there isn’t a dishwasher!

Finally, always consider the rent you’re going to achieve when planning your décor and buy accordingly. Keeping things simple will reduce your initial outgoings and keep future maintenance costs low, ensuring you maximise your profits!