Tag: buying

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July 2024 Property Market Update

Property Market Update July 2024

The UK property market continues to be a topic of conversation, with July 2024 seeing a mixed picture. In our latest property market update, we’ll look at the latest trends for buyers, sellers, landlords, and renters, and of course we are keeping an eye on the potential impact of the recent general election and the incoming government.

Property Market Overview: Steady Growth with Regional Variations

Nationwide house prices saw a modest 0.2% rise during June 2024, bringing annual growth to 1.5%. This is quite a significant shift from the heady days of double-digit growth in 2023. However, it’s important to remember that the market can vary significantly depending on location.

Buying: A More Balanced Market

For potential buyers, July has seen a more balanced market. Rightmove reports a rise in available properties, easing intense competition and making for an altogether calmer buying experience and considered decision-making.

The best mortgage rates are hovering around 4.7% and recent cuts to the base rate offer hope for even more improved mortgage deals in the coming months, with Oxford Economics still predicting a Bank of England base rate cut in August.

Tips for Buyers:

Do your research: Understand your budget and target areas thoroughly. The experienced team at City Realtor can help you with buying a property in Tower Hamlets. Simply call us on 0207 790 7702 for advice.

Be prepared to act quickly: Great properties can still attract multiple offers so it’s important to have a mortgage agreement in principle to help you secure your new home.

Consider working with a mortgage broker: With a complex mortgage landscape, a broker can secure the best possible deal for your circumstances, ensuring you get the most out of your budget. City Realtor is happy to recommend a mortgage adviser. Please just ask.

Selling: Strategic Timing Can Be Key

Sellers may need to adopt a more strategic approach in July’s market. There are still plenty of buyers around, however, the number of properties for sale dropped off slightly following the election announcement in May. With a new government now in place, it will be interesting to see whether this picks up again. July and August can be quiet months for sales, but a well-presented property with a competitive asking price, will likely attract interest.

Tips for Sellers:

Price realistically: Get an accurate valuation of your property to attract serious buyers. Remember that the highest valuation is not always the way to go! Always consider an estate agent who you feel you can trust to market your property in the best way and achieve the price your property is worth. For a free valuation, call City Realtor on 0207 790 7702 or email us at admin@cityrealtor.co.uk.

Presentation is key: Invest in decluttering, staging, and kerb appeal to make your property stand out. First impressions matter, and potential buyers often make snap judgments during viewings.

Landlords and Lettings: Adapting to Changing Regulations

Landlords are still navigating a period of significant change. In The Kings Speech on Wednesday 17th July, The King announced that the Government would introduce legislation to “give greater rights and protections” to those renting – including “ending no-fault evictions”, with draft legislation published on leasehold and commonhold reform.

In a further statement from Downing Street, the Government said: “The Renters’ Rights Bill delivers our manifesto commitment to transform the experience of private renting, including by ending Section 21 ‘no fault’ evictions…The Bill will give renters much greater security and stability so they can stay in their homes for longer, build lives in their communities, and avoid the risk of homelessness.”

Tips for Landlords:

Stay informed: It’s crucial landlords keep up-to-date with changes in regulations and legislation by following resources like the National Landlords Association (NLA). If in any doubt speak with a member of our lettings and property management team at City Realtor on 0207 790 7702.

Consider tenant retention rather than rent increases: A reliable tenant who takes good care of your property can be more valuable than a small increase in rent. Building a positive relationship with your tenants can lead to long-term stability and fewer void periods.

Maintain your property: Regular upkeep ensures your investment remains attractive to tenants and minimizes the risk of costly repairs later.

The General Election and the Property Market

The recent general election has added another layer to the property market. The incoming government’s policies on housing, taxation, and infrastructure spending will undoubtedly impact the sector in the long run. However, the immediate effect is likely to be muted and the established nature of the UK property market suggests it will continue to function even during a period of political change.

Looking Forward: A Market in Transition

The UK property market is in transition. Modest growth, regional variations, and the influence of the new government are key factors to consider. However, while there may be adjustments ahead, the fundamental strength of the UK property market is likely to endure.

For buyers, sellers, landlords, and tenants this period offers an opportunity to be informed, strategic, and adaptable. By understanding the current trends, staying informed about future developments, and seeking professional advice when needed, you can navigate the UK property market with confidence.

City Realtor are your local estate agents in Tower Hamlets. We are delighted to bring you our property market updates each month. If you are thinking of buying, selling or letting a property in Tower Hamlets, please get in touch.

City Realtor are your local estate agents in Tower Hamlets. We are delighted to bring you our property market updates each month.

For no-obligation advice on buying, selling, renting or letting a property in Tower Hamlets please contact our expert property team at City Realtor on 0207 790 7702. Alternatively, get an instant valuation here. We look forward to helping you move home.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, Watch our YouTube Videos!

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9 Moving Home Packing Tips For A Smooth Move

9 Moving Home Packing Tips For A Smooth Move

Moving to a new home in Tower Hamlets is an exciting milestone, but packing up your entire life can be a source of stress and anxiety. However, fear not because we have some moving home packing tips for you! With proper planning and organisation, the moving home packing process will be much more manageable.

In this blog, the team at City Realtor will share our moving home packing tips to help you achieve a pain-free move with minimum stress.

So, let’s get into it!

9 Tips to Make the Moving Process Better

1. Create a Packing Timeline

Start your moving home preparations by creating a well-structured packing timeline.

  • Begin early, ideally at least six weeks before your moving day.
  • Break down your packing tasks into manageable chunks, focusing on one room at a time.
  • Make a checklist of items to pack in each room, along with deadlines for completing each task.

By spacing out the packing process, you’ll avoid feeling overwhelmed and reduce the last-minute rush as moving day approaches.

2. Get Rid of Unwanted Items

Before you start packing, take the opportunity to declutter items you no longer need. Go through each room methodically and sort your belongings into three categories:

  • Keep
  • Donate
  • Discard

This will make your move more efficient and will help you save on moving costs by reducing the number of items to be transported. Plus, donating usable items will give you the satisfaction of helping those in need.

3. Gather Packing Supplies in Advance

There’s nothing more frustrating than realising you’re running out of supplies in the middle of the packing process. Avoid this by gathering all the necessary packing materials well in advance. Go online and stock up on sturdy moving boxes of various sizes, bubble wrap, packing paper, packing tape, labels and markers. Having these supplies to hand will prevent last-minute scrambling, and ensure that your belongings are adequately protected during the move to your new home.

4. Pack Room by Room

To stay organised during your move, pack one room at a time. This method ensures that items belonging together stay together, making unpacking at your new home a breeze. As you pack, label each box with its contents and the room it belongs in. To take it a step further, consider colour-coding the boxes for each room. This visual cue will help you and your movers identify where each box should go ready for unpacking.

5. Use the Right Packing Techniques

Proper packing techniques can make a huge difference in protecting your belongings during the move. For fragile items like glassware and dishes, use generous layers of bubble wrap or packing paper to ensure they are well-padded. Utilise dividers or crumpled paper to prevent items from knocking against each other during transport. For clothes, keep them on hangers and cover them with bin bags, creating makeshift garment bags that will protect them and make unpacking much quicker.

6. Pack a First-Day Essentials Box

In the hustle and bustle of moving, it’s easy to lose track of the items you’ll need upon arrival at your new home. Prepare a “first-day essentials” box containing the items you’ll require before you’ve had a chance to unpack. This box should include:

  • Toiletries, loo roll and medications
  • Change of clothes and fresh linen for bedding
  • Important documents (such as identification and medical records)
  • Phone chargers
  • Essential kitchen items (tea and coffee, milk, mugs, kettle)
  • Any other necessities that will help you get through the first day comfortably

7. Seek Professional Packing Help

If the idea of packing overwhelms you or you don’t have the time to do it yourself, consider hiring professional packers. They have the expertise and experience to pack your belongings efficiently and securely, saving you time and ensuring that your possessions are well taken care of during the move. While this may be an additional expense, the peace of mind and time saved can be well worth it, especially if you have valuable or delicate items that require special attention.

8. Label Electronics and Cables

Disassembling electronics can be a daunting task! It becomes much easier if you label each cable and component as you go. Take pictures of the setup before disassembling to help you reassemble them correctly in your new home. Place all the cables and accessories in labelled bags and keep them together with the corresponding electronic device. Additionally, consider using cable organisers or ties to prevent tangles and confusion during unpacking.

9. Secure Hazardous Materials Separately

Certain items, such as cleaning materials, aerosol cans, and flammable liquids, are considered hazardous and require special handling. Keep these items separate from your regular packing and transport them safely or dispose of them responsibly before the move. Check with your local waste management facility or follow your area’s guidelines for the disposal of hazardous materials.

Moving Home Doesn’t Have to be Stressful

Read our Guide to Buying here

Selling? Get an Instant Valuation

Planning ahead, decluttering, using proper packing techniques, and seeking professional assistance are key factors in ensuring a successful and stress-free move.

If you are planning on moving to the Tower Hamlets area soon, embrace the excitement of starting a new chapter in your life and take our moving home packing tips on board.

As your local estate agent in Tower Hamlets, come and speak to a member of our team at City Realtor. Contact us on 0207 790 7702 or email us at admin@cityrealtor.co.uk and let us be your guide to a seamless and enjoyable moving experience.

Frequently Asked Questions About Packing Tips to Make Moving House Easier

Frequently Asked Questions About Packing for a Smooth Move

How many cardboard boxes should I get for packing?

It depends on the size of your home and belongings. It’s better to overestimate – you can always return unused pack boxes.

Should I pack my clothes on hangers?

Yes! Use wardrobe boxes or bin bags to keep clothes on hangers, saving time unpacking and ironing.

What can I use to fill empty spaces in boxes?

Scrunched-up paper towels, packing peanuts or even clothes can fill gaps in boxes and prevent items from moving around.

Can I pack everything myself, or should I hire professional movers?

Professional movers can be a great option if you’re short on time or have fragile boxes. However, they do add to the cost of moving.

What Next?

Do you require a valuation or no-obligation advice on buying or selling a home in Tower Hamlets? Please contact our expert property team at City Realtor on 0207 790 7702 or email us at admin@cityrealtor.co.uk, and we will be delighted to help you.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, watch our YouTube Videos!

Good luck if you are buying your first home, or considering putting your property in Tower Hamlets on the market. We’ve answered even more of your FAQ’s here.

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8 Essential Questions You Should Ask When Viewing A Property in Tower Hamlets

8 Essential Questions You Should Ask When Viewing A Property

Searching for a new home can be an exciting yet overwhelming experience. With so many factors to consider, it’s essential to approach property viewings in Tower Hamlets with a critical eye and ask the right questions to avoid mistakes.

Whether you’re a first-time buyer or a seasoned homeowner, our latest blog post put together by the team at City Realtor will guide you through essential questions to ask when viewing a property in Tower Hamlets.

By being proactive and thorough during your viewings, you will gather valuable information to make an informed decision about your potential future home.

You may also be interested to read our Guide To Buying.

8 Questions to Ask Estate Agents When Viewing a House

Here are the top eight questions you should consider.

1. What is the Current Condition of the Property in Tower Hamlets?

The condition of a property is a crucial factor that influences its value and ongoing maintenance costs. Take note of any visible signs of wear and tear, such as cracks in the walls, dampness, or faulty fixtures. Don’t hesitate to ask the estate agent or seller about recent renovations or repairs. This will give you an idea of how well the property has been maintained and whether there are any potential issues that need to be addressed.

2. Are There Any Structural Problems?

Understanding the structural integrity of a property is vital for your long-term investment. Ask about the age of the building, its construction materials, and any previous structural work that has been carried out. Look out for signs of subsidence, such as uneven floors or cracks in the walls. If you have concerns, you should consider hiring a surveyor to conduct a more in-depth assessment of the property.

3. What is the Energy Efficiency of the Property in Tower Hamlets?

Energy efficiency is not only important for the environment but also for your utility bills. Before you view, you can ask for a copy of the property’s EPC (Energy Performance Certificate), which will indicate its energy efficiency. Enquire about insulation, double-glazing, and the type of heating system installed. A well-insulated and energy-efficient home will save you money in the long run.

4. How Secure is the Property?

Feeling safe and secure in your new home is essential. Ask about the security features of the property, such as locks, alarms, and the presence of any CCTV cameras. Additionally, you could go online and research data about the crime rate in the area and whether there have been any recent significant incidents.

5. What is Tower Hamlets Like to Live in?

The neighbourhood you choose will greatly impact your daily life. Take the time to explore the area surrounding the property and ask questions about local amenities. Are there nearby schools, parks, shops, and public transport? How is the traffic in the area? Understanding the neighbourhood will help determine if it aligns with your lifestyle and preferences. You can view our local area guides here.

6. Are There any Planned Developments or Potential Noise Issues?

While the current state of the neighbourhood may be appealing, it’s important to consider future developments. Ask about any planned construction or infrastructure projects in the area, such as new roads, railways, or commercial buildings. These developments can impact traffic, noise levels, and even property values.

7. What are the Running Costs?

Buying a property in Tower Hamlets involves more than just the purchase price. Enquire about the running costs of the property, including council tax, utility bills, service charges (if applicable), and any ground rent. Understanding these costs will give you a clearer picture of your monthly expenses and help you budget accordingly.

8. What is the Sale History of the Property?

Ask the estate agent about the property’s sale history.

  • How long has it been on the market?
  • Has the price been reduced?

Understanding the property’s sales journey can provide insights into its desirability and potential negotiation points. Additionally, consider researching the property market in Tower Hamlets to assess whether the asking price is reasonable.

Asking the Right Questions is Crucial for Making an Informed Decision

For more advice when buying a property in Tower Hamlets, speak with a member of our team at City Realtor on 0207 790 7702 or drop us an email today at admin@cityrealtor.co.uk.

Frequently Asked Questions About Viewing Properties in Tower Hamlets

What should I look for during a property viewing?

Take note of the property’s condition (cracks, dampness) and ask about any major renovations done. Don’t hesitate to enquire about potential issues like subsidence or ask if planning permission would be needed for any alterations you envision.

What about the surrounding area?

Explore the local area! Consider factors like noise levels, transport links (trains, buses), and amenities (schools, shops). Is there a park nearby for walks?

Are there any hidden costs I should be aware of?

Running costs include council tax (check the band), utility bills, and potential service charges (if applicable). Understanding these will help you budget effectively.

I’m interested in the property’s energy efficiency. What can I do?

Ask the estate agent to show you the property’s Energy Performance Certificate (EPC) which will indicate its energy efficiency rating. Enquire about insulation, double-glazing, and the type of heating system installed. A well-insulated property can save money on bills in the long run! Consider researching how much natural light the property gets throughout the day, as this can also impact energy use.

What Next?

Do you require a valuation or no-obligation advice on buying or selling a home in Tower Hamlets? Please contact our expert property team at City Realtor on 0207 790 7702 or email us at admin@cityrealtor.co.uk, and we will be delighted to help you.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, watch our YouTube Videos!

Good luck if you are buying your first home, or considering putting your property in Tower Hamlets on the market. We’ve answered even more of your FAQ’s here.

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June 2024 Property Market Update

June-2024-Property-Market-Update

During June we’ve seen the UK property market continuing on its path of cautious optimism. While the fast growth seen in previous years has eased, a sense of stability is emerging, underpinned by rising buyer demand and a potential shift in interest rates.

Let’s delve into the key trends shaping the market this month.

Market Recovery Gathers Momentum

The good news for buyers and sellers is that the property market is experiencing a steady recovery. After a period of uncertainty, house prices are showing signs of growth again. According to Nationwide Building Society, May 2024 saw a 0.4% increase in average house prices, bringing the annual growth rate to 1.3%. This indicates a market that’s found its footing and is on an upward trajectory.

Regional Variations Remain

While the national picture is one of growth, it’s important to remember that the UK property market is a patchwork of regional variations. Scotland continues to lead the pack with a significant 6.7% annual increase in house prices, while England and Wales are seeing more modest rises of 1% and 1.3% respectively. Northern Ireland has also shown steady growth of around 4%. Understanding these regional differences is crucial for both buyers and sellers when making informed decisions. If you would like to know more about the Tower Hamlets region, please call us on 0207 790 7702 to discuss.

The Interest Rate Question

A significant factor influencing the market is the ongoing speculation around interest rates. With inflation falling closer to the Bank of England’s 2% target, a potential base rate cut is on the horizon. However, in June, The Bank of England made the decision to keep interest rates the same – at 5.25%, meaning the rate has now remained static for the past 10 months. An interest rate drop could be a game-changer for the market, making mortgages more affordable and potentially boosting buyer demand. Some economists predict the first cut could come as early as August 2024, while others think we may have to wait until December! The impact of this on house prices remains to be seen, but it’s likely to contribute to a more vibrant market.

Election Jitters or Business as Usual?

The upcoming general election in July has caused some to wonder if it will stall market activity. However, experts suggest this is unlikely to happen. In contrast to past elections with significant policy shifts, the current political landscape doesn’t propose drastic changes impacting the housing market. The first interest rate cut, however, is expected to have a more significant impact on market activity this year.

Supply and Demand: Finding Balance

The good news for buyers is that there are signs of a healthy increase in the number of properties coming onto the market. This increased supply is expected to keep house price inflation in check throughout the year. While significant price hikes might be off the table for now, the steady flow of properties ensures buyers have more options in a balanced market.

What Does This Mean for You?

Landlords: The rental market continues to see high demand, with rents rising at a slower pace than the previous year. Zoopla reports an average increase of 6.6% for new lets in April 2024. While this presents an opportunity for stable returns, it’s important to remember tenant retention is key. Focusing on good communication, responsive maintenance, and ensuring your property remains competitive in terms of rent and amenities will be crucial for attracting and keeping quality tenants.

Buyers: With a potential interest rate cut on the horizon, affordability might improve in the coming months. However, with increased competition due to rising demand, it’s still a seller’s market in many areas. Being prepared with a well-researched offer and a strong financial position will be key to securing your dream property in Tower Hamlets.

Sellers: While significant price rises are less likely, the market conditions remain favourable for sellers. At City Realtor we suggest focusing on presenting your property in its best light through minor improvements, home-staging and competitive pricing to attract buyers quickly in a market with more options.

The Bottom Line

The UK property market is moving towards cautious optimism. House prices are showing signs of growth, with regional variations offering opportunities for both buyers and sellers. The potential for a base rate cut later this year could be a major driver of market activity. With an increased number of properties coming to the market, a sense of balance is emerging. Whether you’re a buyer, seller, or landlord, staying informed and seeking expert advice will be crucial for navigating the market effectively.

City Realtor are your local estate agents in Tower Hamlets. We are delighted to bring you our property market updates each month.

For no-obligation advice on buying or selling a property in Tower Hamlets please contact our expert property team at City Realtor on 0207 790 7702. Alternatively, get an instant valuation here. We look forward to helping you move home.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, Watch our YouTube Videos!

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May 2024 Property Market Update

Property Market News May 2024

With headlines in the news about stagnating house prices and rising mortgage rates, May has been a challenging month, with the cost-of-living crisis still biting homeowners. However, it’s not all doom and gloom! Owning a home is still beneficial, offering long-term living and financial stability.

General Election News

Prime Minister Rishi Sunak has announced that we’re heading to the polls on Thursday, July 4th, 2024. This forthcoming general election could bring some stability to the property market, which is great news for buyers and sellers who’ve been dealing with a shaky few months. With inflation nearing the Bank of England’s target and a potential interest rate drop on the horizon, things are looking up. Expect a busy second half of the year for property deals!

How Can First Time Buyers Get on the Property Ladder?

The end of April saw the release of the BSA (Building Societies Association) report which confirmed that first-time buyers currently face the most challenging conditions in seven decades to get onto the property ladder, with an increasing reliance on the Bank of Mum and Dad, or having two high incomes.

The report highlights that home ownership among young adults has been declining for twenty years but, while saving enough money to put down a deposit has long been difficult, the squeeze has been tightened in recent months because of mortgage interest rate increases.

It’s not hard to see why more young people are opting to move back in with their parents, with this now being the most commonly reported living arrangement for those aged 18-34. This is in stark contrast to the figures for 1997 which showed that those in the same age bracket were most likely to be living as a couple with children!

Many first-time buyers are undeterred though, with recent Bank of England figures showing that over the past three years, over a million mortgages extending beyond the state pension age of the borrower have been taken out. Many of those loans have been approved for applicants under the age of 30 as high mortgage rates lead people to opt for extended repayment periods to keep their costs affordable.

Twice the number of homeowners under 30s with ultra-long mortgages can be seen today when compared with two years ago, while the number of under 40s has also seen a 30% increase. It’s also clear that first-time buyers are adapting to higher borrowing costs by targeting smaller, more affordable properties. This adjustment is helping to maintain activity levels in the market with a steady flow of new buyers entering the market.?

Base Rate Held at 5.25% – Good News or Bad News?

The Bank of England most recently held the base rate at 5.25%, despite predictions that there would be a cut.

Meanwhile, three of the UK’s top lenders announced they would be raising their rates on fixed deal mortgages. NatWest, Santander, and Nationwide are the latest three to follow their rivals who increased mortgage rates after expectations about the speed and extent of Bank of England interest rate cuts were scaled back. That’s the bad news!

However, a rate cut is expected, followed by further cuts later in the year. That’s the good news!

A Month of Ups and Downs!

May 2024 was a month of ups and downs in the UK lettings market! The rental market remains robust, with high demand pushing average rents to record levels which is positive for landlords and investors. However, some tenants are still struggling with the impact of the cost-of-living crisis and its knock-on effect on the number of homes available to rent.

Some good news for landlords has been released in Propertymark’s latest insights report , which shows signs of the rental market beginning to stabilise after a rocky period towards the end of 2023 which saw the percentage of arrears peak at 4%.

This month’s report reveals that since the start of the year, the number of tenants in arrears has been falling, and has now reached a low point of 2.5%, indicating that landlords can start to breathe a sigh of relief and look forward to less frustration over rent collection.

Has There Been An Increase In Landlord Confidence?

In a recent report from PayProp, their latest Rental Confidence Index r evealed that an astonishing 54.5% of the landlords involved in their survey were going through the process of selling their properties!

It’s not surprising, then, that half of all tenants who have moved during the last year have done so because their landlord took the decision to sell up. By contrast, the percentage of tenants who left their homes due to eviction stood at under 12%.

However, the announcement of amendments to the Renter’s Reform Bill has led to positivity amongst UK landlords. In a further poll commissioned by PayProp, the number of respondents who reported a negative view of the private rental sector fell compared with those asked the same question in 2022. Over half of landlords are now feeling more positive about the sector’s future.

In a smart move by first time buyers, 66.7% of properties being sold by landlords are being snapped up by first timers. But this does mean that the number of private rentals is dwindling – an issue that is now seeing prospective tenants fiercely competing to offer on properties.

Did You Know?

This year we are already seeing increased demand for sustainable homes. Energy-efficient features and eco-friendly designs are becoming more sought-after, alongside smart security, energy management tools and automated heating systems.

What Next?

We are delighted to bring you our property market updates each month. If you are thinking of buying, selling or letting a property in Tower Hamlets, please get in touch with us at City Realtor on 0207 790 7702 or email admin@cityrealtor.co.uk

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, Watch our YouTube Videos!

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3 First Time Buyer Mistakes – And How To Avoid Them!

3 First Time Buyer Mistakes - And How To Avoid Them!

As a first-time buyer looking at properties for sale in Tower Hamlets you’ve reached an exciting milestone, however, it can also be a daunting and complex process.

One of the critical stages in this journey is viewing places to potentially call home. Yet many first-time buyers make some common mistakes during viewings that impact their buying experience and future investment.

So, how can you avoid first-time buyer mistakes?

The team at City Realtor will help you explore three common pitfalls and provide insights so that you can avoid them, ensuring a smoother and more informed property-buying journey.

You may also be interested to read our guide to buying.

Mistake #1: Failing to Consider Your Needs and Budget

One of the first and most significant mistakes we see first-time buyers make is not considering their needs and budget. Here’s why it’s essential:

  • You’ll waste time on unsuitable properties. Without a clear understanding of your needs and financial limits, you may end up viewing properties that are either too expensive or don’t meet your requirements. This can lead to wasted time and frustration.
  • You could overextend your finances. Falling in love with a property that’s beyond your budget is a common mistake. Stretching your finances to purchase a property can lead to financial strain and potentially put your future stability at risk.

How to Avoid This Mistake: Before you start viewing properties and making offers, create a list of your ‘must-haves’ and ‘nice-to-haves’. Determine your budget, including costs like deposits, legal fees, and moving expenses. Stick to your budget and prioritise properties that meet your criteria.

Use our mortgage calculator here

Use our stamp duty calculator here

Mistake #2: Not Asking the Right Questions During Viewings

First-time buyers often underestimate the importance of asking the right questions during property viewings simply due to inexperience. Here’s why this mistake can be detrimental:

  • You might overlook potential issues. Not asking critical questions about the property can lead to missed red flags. Issues like hidden structural problems, maintenance history, or neighbourhood concerns may go unnoticed, leaving you with unexpected challenges post-purchase.
  • The lack of informed decision-making. A lack of questions means a lack of information. Without essential details about the property and information about the area, you may make decisions based on limited knowledge, which can lead to buyer’s remorse.

How to Avoid This Mistake: Prepare a list of questions to ask during viewings. These can include enquiries about the age of the property, any recent renovations, what the neighbourhood is like, utility costs, and any known issues. A good estate agent will be able to provide you with this information or direct you to relevant resources.

Mistake #3: Ignoring the Bigger Picture as a First-Time Buyer

It’s easy to get caught up in the aesthetics of a property during the excitement of viewings, but failing to consider the bigger picture is a common mistake with long-term consequences:

  • You might overvalue cosmetic features. First-time buyers often place too much importance on superficial elements like decor and furnishings. While these can be appealing, they shouldn’t overshadow more substantial factors like location, potential for growth, and future resale value.
  • You could neglect long-term goals. Viewing properties with only your current needs in mind can be shortsighted. Consider your long-term goals, such as starting a family. Ignoring these factors may result in outgrowing your home sooner than expected.

How to Avoid This Mistake: Balance your appreciation for aesthetics with a practical assessment of the property’s potential. Evaluate the location, proximity to amenities, transport options, and the area’s growth potential. Think about how the property aligns with your long-term goals.

Making the Right Choices on Your First Property Buying Journey

Navigating the property market in Tower Hamlets can be challenging, but you can avoid first-time buyer mistakes during viewings and make a significant step towards a successful purchase.

Remember that working closely with a reliable estate agent in Tower Hamlets, like the experienced team at City Realtor, will be invaluable in helping you avoid first time buyer mistakes and make the right choices during your property buying journey.

If you’re a first-time buyer looking to get on the property ladder and would like advice, we would love to hear from you. Email us at admin@cityrealtor.co.uk or call us on 0207 790 7702.

Frequently Asked Questions About Other Common First-Time Buyer Mistakes

How can a bad credit score affect my mortgage options?

A low credit score can limit your choices and potentially lead to higher interest rates from mortgage lenders.

Can I afford a higher monthly mortgage payment than what’s pre-approved?

Don’t exceed your pre-approved budget. Mortgage lenders consider your income and credit score to determine a sustainable monthly payment amount.

What should I do to improve my chances of getting a mortgage?

Work on improving your credit score by paying bills on time and reducing your debt. A larger down payment can also strengthen your application with mortgage lenders.

What Next?

Do you require a valuation or no-obligation advice on buying or selling a home in Tower Hamlets? Please contact our expert property team at City Realtor on 0207 790 7702 or email us at admin@cityrealtor.co.uk, and we will be delighted to help you.

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, watch our YouTube Videos!

Good luck if you are buying your first home, or considering putting your property in Tower Hamlets on the market. We’ve answered more of your FAQ’s here.

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April 2024 Property Market Update

April 2024 Property Market Update

With the first quarter of the year now behind us, April 2024 has brought a positive forecast as some of the uncertainty of the past 12 months is starting to ebb away. Thanks to the latest developments in the economy, the property market is looking brighter for the next few months as we move forward towards summer.

Inflation Set to Impact Mortgage Rates

According to the Office for National Statistics, March saw the Consumer Price Index fall to 3.2%, taking the UK’s economy ever-closer to the target of 2% set by the government. This looks like good news for the property market, thanks to the influence it will have on mortgage rates.

The most up-to-date data from the Bank of England shows that the flurry of initial activity seen at the beginning of the year has now begun to calm. February saw a significant increase in the number of mortgage approvals as mortgage rate cuts prompted market activity. However in March, the number of agreed sales dropped to 2% above 2017-2019’s average, down from February’s 13% above.

Since mortgage rates now are almost back to the same level as seen in late December, it looks unlikely that the pace of activity seen so far this year will be maintained into the summer months.

Potential Action on Leasehold Maintenance Contracts

Homeowners locked in private new-build communal area maintenance contracts have a glimmer of hope on the horizon as over 40 Conservative MPs call for a ban. As the Leasehold Bill slowly works through Parliament, the Housing Secretary is now under pressure to include a “Fleecehold” ban to help the millions of people living under this model and facing steep estate fees.

The CMA (Competition and Markets Authority) has also recently recommended bringing an end to this model too, putting forward a proposal that local councils be required to adopt new housing estate public amenities once complete. According to the housing minister, the government is now paying careful consideration to this report, which also suggests introducing a property agent regulatory body to address leasehold issues and raise standards across the industry.

With news of homeowners facing shocking increases as high as 274% in their annual service charge bills for 2024, the prospect of the some positive change in the status quo can only be cause for cautious celebration.

Watering Down of Renter Reform

The news isn’t so good for renters, though, as the government set out changes to the planned protections in England for renters following concerns from a number of Conservative MPs that the original proposal would be too much of a burden for landlords.

The latest alterations include requiring tenants to commit to at least a 6-month contract rather than being able to end their tenancy with 2-months’ notice from day one and, most controversially, delaying the no-fault eviction ban on existing tenancies pending the outcome of the justice secretary’s assessment of the court system’s ability to handle repossession claims.

One positive proposed change, however, is the introduction of a right to local council homelessness support for tenants who find themselves evicted under the new grounds for possession.

While this watering down of the Renters (Reform) Bill is sure to be received negatively by those tenants who are aware of its existence, recent research published by the TDS Charitable Foundation shows that a surprising 83% of people who are currently living in a rental property lack any awareness of the Bill’s proposals. Of those who know about the proposed reforms, most are pessimistic about their ability to result in tangible changes. 42% believe the Bill will change little about the rental sector, while 37% believe it is unlikely to be implemented at all.

Good News for Landlords as Tenants Stay Longer

While tenants may be less than thrilled with the latest developments in the property market, things are looking up for landlords as The DPS (The Deposit Protection Service) released its research that revealed tenants are staying in their properties for a third longer than in 2020.

Today’s typical tenancy is now lasting for 924 days, a significant increase over the 706 days seen four years ago. It appears that a combination of the cost-of-living crisis, high rents, and a competitive market for new rental properties are leading to renters remaining for longer periods in their homes.

In further positive news for landlords, Octane Capital reports that the typical buy-to-let property yield has now increased to 5.8%, up from 4.9% over the last two years, and while running costs have gone up over the same period, landlords are still enjoying attractive net profits overall. This report, paired with the proposed delay in the no-fault eviction ban, is likely to encourage existing landlords to remain in the market for the foreseeable future.

As we move further into the second quarter of the year, time will tell how the property market will develop. Traditionally, spring sees more homes being listed for sale, so we will wait with anticipation to see what May has in store!

What Next?

We are delighted to bring you our property market updates each month. If you are thinking of buying or selling a property in Tower Hamlets, please get in touch with us at City Realtor on 0207 790 7702 or email admin@cityrealtor.co.uk

Don’t forget to follow us on our socials for updates and new listings!

Follow us on Facebook, connect with us on X, join us on Instagram, find us on TikTok, see us on LinkedIn, Watch our YouTube Videos!