Category: Latest News

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Negotiation not Obduration

negotiation

Dominic Parravani of Durrants highlights what it takes to put together property deals in 2023.

With the property market now working in favour of buyers, negotiation between parties has suddenly become very important. Through the pandemic and its aftermath full and over-price offers were the order of the day. Frankly, it often wasn’t hard to do a deal then, but now the pendulum has swung the other way. Unfortunately, many sellers across the country haven’t quite got this message yet.  That is why, with many more buyers coming to the market, there are not as many people moving as there could be.
 
Four things make a positive negotiation: a good attitude, flexibility, pragmatism and being seen to be reasonable. We need look no further than the recent political negotiations concerning Northern Ireland to show how previous talks broke down, when lately there has been far more progress.
 
As Winston Churchill said, “You cannot reason with a tiger when your head is in its mouth”. If one side is bitter and angry and the other aggressive and intransigent, there is little room for an understanding between parties. Indeed, a lot of principle taking and digging in of heels seldom gets anyone anywhere. But an acceptable deal is far more achievable with goodwill on both sides, a clear view of what may be possible, and a sympathetic attitude to the other party’s issues. Remember, the best deals are those where both parties feel they have won, or at least haven’t lost.
 
A good estate agent understands all these nuances and orchestrates the negotiation, smoothing out the inevitable ups and downs during an important and tense time.
 
Today, if you are about to sell your property, the first thing you need is a great negotiator. So, do your homework. Speak to a few estate agents and ask them to give you an example of how they conducted a recent complex sale. Don’t be embarrassed to ask. What is at stake is an excellent outcome. Having a deal maker on your side, and not an order taker, is vital.

Ask yourself what is more important, a cheap estate agent or a great result? Get in touch with your nearest Durrants branch today, or get a free valuation of your property. 

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Are there benefits to overpaying a mortgage?

mortgage

If you have streamlined your spending and examined where and how you can save, you might find that you have a little leftover. Thought of overpaying your mortgage? Paying more of your mortgage off, means you pay less interest. Heating, council tax, and gas bills have all increased. In some ways there is not much you can do to reduce the price of these things yourself. With interest rates higher than they have been for years there has never been a better time to get one back on the system by saving money on your mortgage. We look at the best ways to do so and crunch some numbers to show how a few extra pounds each month can shorten the term of your mortgage significantly.

There are essentially two ways to overpay your mortgage, in a lump sum or by adjusting your monthly payment.

Mortgage overpayment calculator

Most high street banks have mortgage overpayment calculators which will help you see how much you could save.

Overpay in lump sums

It could be that you get a good interest rate on a savings account. You can save an amount you are comfortable with and feel secure in case you need access to emergency funds. Then pay off so much of your mortgage in lump sums, always leaving a certain amount in your savings account.

Increase your monthly payment

Many people choose to increase their monthly payments.If you have taken out a mortgage with a term of 25 years for £150,000 at an interest rate of 4% then here are some inspiring numbers!

According to moneysavingexpert.com, paying an extra £10 per month could save over £2000 on interest and pay your mortgage off 6 months early.*

If you increased your payment by £100 then you could reduce the term of your mortgage by nearly four and half years, with a saving in interest paid of £17,000!

Penalties 

It is essential that you check the terms of your mortgage with your mortgage provider. There may be a penalty cost incurred if you overpay by a certain amount. That said you will still be able to overpay more than you might expect before being punished! For example, most mortgage providers will allow you to pay up to 10% of the balance before being charged for fixed-interest rate mortgages. One advantage of paying a variable rate mortgage is that typically you can pay off as much as you like.

A better deal

If you have been overpaying your mortgage and it’s time to get a new deal, you may find that you get a better interest rate because your loan-to-value (LTV) ratio is now lower. Typically, the more equity in your home the less interest you will pay. Paying off more of your mortgage can save you on interest in more ways than one!

Do what’s right for you

Perhaps you are struggling and this is something you will look at doing in the future. It may be that you have a grand plan and aim to pay off your mortgage in the next seven years. Whichever you decide to do, paying off a little or a lot has a big impact!

It’s more than a house it’s the feeling of being home. Browse our properties.

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Will house prices decline this year?

house prices

Will house prices decline this year?

What does it really mean when you read a headline which mentions falling house prices? We hear this phrase so often that we are led to believe it! The media constantly churns out facts and figures to scare us all and warn of looming doom!

For most people, buying a house is a long-term investment and if house prices rise or fall it’s always best not to focus on the headlines, instead take a step back and put things in perspective.

If we look at last year, house price increases indeed dipped due to interest rates rising and the impact of the minibudget. In 2022 according to the Nationwide Price Index, house prices grew by 2.8% overall for the year, falling from a growth rate of 4.4%. Yet according to the office for National Statistics average UK prices increased by 12.6% over the year to October 2022. So, it depends on who you ask! Not to mention regional differences and property type – often houses increase in value more rapidly than flats.

Predictions

Zoopla predicts a 5% fall in house prices, while Lloyds bank gives a higher figure of 9%. Many analysts agree house prices will fall for the next two years but rise again in 2025. Perhaps more optimistically the housing market could simply level out, with smaller drops in house prices. There is still a shortage of houses and therefore this will stabilise the market.  The housing market is simply returning to a pre-pandemic norm with more realistic interest rates. The good news is without rapidly rising prices, there is more long-term stability.

The good news

Ultimately if you are selling, the value of your home will have gone up considerably over the past years so if it falls a little you have still gained. If you are about to purchase your first property and still gathering the deposit and you know it may take a little longer, at least house prices are not rocketing which gives you a little more time.  And when you are in a position to make an offer, you may find that you have a lot more wriggle room in terms of making a lower offer and saving some money.

Long term

Buying a house is a long-term investment for most of us and even large drops in value will not create big gains or losses. For example, if you buy a house for £200,000, typically the deposit is 10%, £20,000. If you plan to wait thinking house prices will drop by 10% you have saved £2000, in terms of a deposit. In a long-term investment, this is not a significant amount of money.

If the worst does happen, you buy a house tomorrow and house prices suddenly drop by 10% unless you are planning on selling within the next 2 years, with house prices set to rise again in 2025 then again realistically you have lost £2000, temporarily before gaining again. In both the above scenarios, in the long term, you will still gain.

Conclusion

The future looks good, yet even if there is a sudden drop in the grand scheme of things, it’s not such a bad thing! In fact, does it even matter? What’s important is finding a house you can call home and cherish the memories you make in it.

Browse all the properties we have for sale at Durrants to find your next home.

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Get your home ready for spring with this checklist

spring

Spring is still a month away and the longer, lighter days of summer breeze are even further in the future. That’s not to say you can’t start giving your home a good spring clean now and get ahead of the seasons. It can be a liberating, therapeutic experience and often quite necessary with Christmas not that far behind us. The odd pine needle that you may find on the floor or carpet is proof that you made the right decision to give your home a spring clean.

Now that you are on top of your cleaning, in fact, your house is an impeccable example of cleanliness. What else do you need to think about at this time of year?

Inspection

Give your home a good overall inspection. When you find anything that needs attention take a picture of it or make a note. Then you can create a list of priorities. This is the first step to sorting whatever you find!

Check your caulking

A good place to start is to check out your bathroom caulking. During the steamy windows of wintry months, this often suffers. The cold winter weather outside means that you have perhaps not opened the windows quite as often as usual.

Windows

Give your windows a good clean. You most likely have a window cleaner to do the outside, get some vinegar, water and elbow grease and tackle the inside.

Gutters

After the windy assaults of winter, it’s always a good idea to check your guttering.  If it’s damaged, when it rains again it can cause more damage or flooding which could lead to expensive repairs. Plus, it’s always a good idea to get on top of any repairs because there might be a bit of a wait to get them fixed if you find any.

Roof

Checking your roof is important; a few slate tiles may have become loose or perhaps have blown away. Use a camera or binoculars, just to be on the safe side.

Garden

It might be a bit early to get fully immersed in your garden. However, you can certainly have a tidy-up and start planting a few bulbs for the summer. Why not check the patio for weeds or cracks that may have appeared from the ice? Simply doing these things will make you feel as if spring and summer are well on the way.

Wood

If there are a couple of clear days and you have the time. Reseal your decking or fences, as well as the shed or gates. Now is a great time to get it done.

Concrete and pointing

Any concrete, pointing, tarmac or hard surfaces that may have cracked over the winter or simply become cluttered up with moss or dirt can be cleaned. This will brighten up the appearance of your home and make it feel a bit more spring-like.

The result

Doing all these things will help whether you are staying put, selling, thinking of moving or if you have plans to develop your property in the coming months.

Thinking of moving? Call us or book online today for a free valuation to see how we can help.

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Durrants sponsors River Waveney Trust project

river waveney trust

Durrants are pleased to announce sponsorship for the River Waveney Trust. The support will go towards the Norfolk Ponds Project, a partnership project with the aim of promoting the conservation of Norfolk ponds, especially in farmland.

The Norfolk Ponds Project aims to work alongside landowners to reverse the decline of Norfolk ponds so that agricultural landscapes contain an assortment of clean water ponds with fewer ponds overgrown by trees and bushes.

You can find out more about the valuable work carried out by River Waveney Trust by visiting their website.

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Things that landlords need to know in 2023

Durrants Things that landlords need to know in 2023 Article

This year is proof that life as a landlord is not as simple as it used to be. Reforms for tenants along with new laws and legislation will make it a bit more complex. That said the great news is that demand for rented properties is still extremely strong. There is a chance you could pick up a bargain as property prices slow. These changes help protect landlords and tenants so it should be another good year where standards across the industry rise.

Better protection for tenants

The renter’s reform bill could become legislation this year if the government have their way. Giving more rights to tenants will also force unscrupulous landlords to up their game and stop cutting corners. This will raise standards and rights for renters and stop your properties to let potentially suffering from bad landlords undercutting you.

Higher capital gains tax

The tax-free allowance for landlords selling a property will be reduced significantly from April. This means you could pay more capital gains tax, so if you want to avoid it, and you are thinking of selling, better to sell sooner rather than later. There will be further cuts in 2024, meaning your tax relief when you decide to sell will be halved.

Buy-to-let mortgage rates

Mortgage rates while higher than they used to be, are now much more stable than last year. This means you can plan for the future once again and calculate costs more accurately.

Higher demand

In 2022 demand for rented accommodation was huge. This year demand is still very strong.  Fewer people can afford to buy due to the cost-of-living crises and the hike in interest rates. It’s expected that landlords will increase rents in order to cover costs but also to reflect the huge demand and get a better rental yield.

Add to your portfolio

With house prices levelling out and falling now is the time to add to your portfolio. Rental yields are good, and demand is very high. Some landlords will choose to sell, while savvy investors will seek new properties to develop as buy-to-let businesses. Asking prices are much more open to lower offers than last year so you might just acquire something that before was not as good as an investment.

Financial help for energy efficiency upgrades

Landlords who meet certain criteria might be eligible for government assistance with £1bn to help homeowners to insulate their properties. The aim is to improve energy efficiency which will help landlords with providing energy-efficient, appealing homes.

Outlook

There is a lot going on in 2023, and if you are a landlord you are most likely to incur more costs. With rental demand growing now is the time to invest while providing great places to live for tenants. As the industry becomes more regulated, standards rise in so many ways, elevating the industry and creating a more stable investment prospect.

Tenant demand has never been better. Browse our properties

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Where should property investors put their money in 2023?

Durrants Where should property investors put their money in 2023? Article

When it comes to property, there are no hard and fast rules when choosing where to invest. The UK has a rich, diverse and ever-evolving swathe of properties. From Art Deco, Tudor and Edwardian to ultra-modern there is an endless choice, and where you choose to invest comes down to your vision, budget and individual aspirations.

The possibilities are endless, it could be that you are a seasoned investor and you have now turned your attention to creating flats in what were terrace houses. Perhaps you are making your first steps on the buy-to-let ladder by letting your home. Perhaps you enjoy refurbishing properties or simply looking for a rental-ready property that needs no work for a solid and straightforward investment, managed by a letting agent.

A good opportunity is just that!

It’s no secret that property prices have increased rapidly over the past few years. Great investment property opportunities exist everywhere. Right now, as property price increases cool there is greater scope for buying below the asking price. This allows a little more budget for development. As a landlord, you can raise standards and achieve a greater rental yield.

Rental Yield

To calculate rental yield, divide the difference between annual rental income minus the annual costs, by the purchase price of the rental property. You can find many rental yield calculators online which will save time when calculating what is an appealing investment.

The Lancashire coast is an example of a region that in terms of an average rental yield offers a good return on investment. This is because the average property price is relatively low, while the average rent price is relatively high. House prices on the southeast coast over the past ten years have doubled, while in other regions prices have increased at a much slower rate, according to figures from The Office for National Statistics.

Every property is unique and while rental yields differ from property to property there are other factors to consider, as you seek your ideal property investments it’s important to focus on more than rental yields.

How quickly do you want to let your property?

Refurbishing a property depending on the level of work involved can take time. Investing in an already refurbished flat means it can be let out immediately. Waiting for builders or materials while you refurbish a terrace house or suburban detached house, can eat into your rental revenue. That said, letting a larger house room by room could offer a greater rental return and could be easily worth the investment of time and money.

What motivates you?

There are many developers and landlords savvy enough to realise that raising the standards of let properties is a passion that makes a lot of business sense. Providing the best possible property to let may cost more initially but it will increase, the value of your property and rental revenue and attract great tenants.

Not entirely sure where to invest in the property market? Contact us today to see how we can help.  

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Ditch the Compass

Dominic Parravani of Durrants helps point you the right way through the new year property market maze.

There are areas of the British Isles, such as loftier parts of the Isle of Skye, where a compass doesn’t work. This anomaly is due to the local geology – a hard, abrasive, magnetic rock called gabbro. Not being able to trust one’s compass is always unnerving – and potentially dangerous.

At the moment the property market is like an untrustworthy compass. The needle should point accurately; instead it is going round and round, making the public uncertain about the correct way to go. Many people are faced with the rotating needle of conflicting information from the press and social media. Some commentators point to falling values, while others disagree. Headlines scream that higher mortgage rates will make it difficult for first time buyers, buy-to-let investors will be selling up en masse, or that in a few short months we will be in a pre-banking crisis, pre-Brexit and pre-pandemic property market Utopia.

It’s challenging for most to know which way to go. Should one hold off buying or selling in the hope of a better market? But buyers and sellers will be piling in by then, which could mean losing the advantage of bold action now.

The answer to all these questions is to ignore the confused media compass and find a more reliable pathfinder. Enter the estate agent. You might be astonished to know how much a good and experienced estate agent understands about their local property market. After all, agents’ activities are seen in the main to consist of social media posts, newspaper ads and For Sale and Sold boards. But estate agencies are like icebergs: ninety per cent of what’s going on is unseen.

Author Malcolm Gladwell suggested it takes 10,000 hours (or approximately ten years) of deliberate practice to become an expert in anything. Over ten years a good estate agent will have marketed, agreed the sales and seen through to completion thousands of property deals through markets good and bad, economies booming and busting, in spring, summer, autumn and winter. These property experts will have also helped families move during the good and the not so good times in their lives. Over 10,000 hours experienced agents have learnt what to do whatever the market, and they know what to do now.

So, if you want to know what direction is best for you in the prevailing property market, don’t trust a compass; ask an expert. Get in touch with your nearest Durrants branch, or get a free valuation of your property. 

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Update on Environmental Land Management Schemes (ELMs)

Environmental Land Management Schemes ELMs

Defra has recently updated their guidance on the Environmental Land Management Schemes known as ELMs. In this document we have provided a brief summary of the updated information released by Defra.

The ELM schemes will continue to pay farmers to provide environmental good and services alongside food production. There is an increased focus on increasing biodiversity, improving water quality, flood resilience, woodland creation, and carbon capture.

Funding for farmers and land managers will be available under three schemes within the ELMs:

Sustainable Farming Incentive (SFI) will pay farmers to adopt and maintain sustainable farming practices.

Countryside Stewardship will pay for more targeted actions relating to specific locations, features and habitats.

Landscape Recovery will pay for bespoke, longer-term, larger scale projects to enhance the natural environment.

Below is a summary of the update for each specific scheme released last week:

New Sustainable Farming Incentives announced.

The update last week incudes new Sustainable Farming Incentives (SFI) Standards which will be available from late 2023. SFI offers funding to farmers to carry out farming activities in a more environmentally sustainable way so that they can produce environmental goods and services alongside food.

The Sustainable Farming Incentive Scheme opened in 2022 with originally three standards:

  • Arable Soils
  • Improved Grassland Soils
  • Moorland Standard

The six new standards include:

  • Hedgerows Standard
  • Arable & Horticulture Standard
  • Improved Grassland Standard
  • Low Input Grassland Standard
  • Nutrient Management Standard
  • Integrated Pest Management Standard

Sustainable Farming Incentive Management Payment

In 2023, Defra will introduce an additional ‘SFI management payment’ to recognise the management costs and time involved for farmers in participating in SFI.

The rates pf funding will be £20 per hectare (ha) management payment per year, for up to the first 50 hectares entered into SFI actions. This will represent a maximum payment of up to £1,000 per year. Defra will keep this payment under review over the next two years, along with all other elements of scheme design and deliver.

Countryside Stewardship (CS) Schemes:

From January 2023, payment rates for revenue and capital options in CS have been updated.

Defra have introduced a number of changes to help improve the application process and broaden the scope of the scheme.

These include:

  • expanding the capital offer to include specific items to help farmers and land managers prepare for habitat creation and restoration (such as feasibility studies, implementation plans or specific capital works) including existing HLS and CS agreement holders.

 

  • Catchment Sensitive Farming (CSF) offer will be expended so eligibility now covering all catchments

 

  • Higher Level Stewardship (HLS) agreement holders will be able to take up Countryside Stewardship agreements alongside their HLS – this will benefit farmers who already have an HLS agreement but want to increase their income from schemes by doing more on more of their land.

 

  • Those farmers currently in a CS agreement can already apply for another CS agreement if they want to extend their activities and support delivery of Environment Act outcomes.

 

  • Defra will bring some Higher Tier options into Mid Tier to support wider take-up of biodiversity-friendly options, and increasing options available in the Wildlife Offers and Wild Pollinator and Farm Wildlife Packages to support 2030 and other biodiversity targets’ delivery

 

  • Farmers and land managers will have three years to complete capital works activity and submit claims – this will be automatic for any new applications received after 1 January 2023.

 

  • Defra will also introduce an annual declaration in place of the current burdensome revenue claim process (for all CS agreements)

 

The Higher Tier and Mid Tier and Wildlife Offer windows will open again in February and March respectively for applications.

 

Landscape Recovery

Landscape Recovery is designed to fund a smaller number of longer-term, larger-scale, bespoke projects to enhance the natural environment and deliver significant benefits. Defra will award agreements through competitive application rounds focused on the outcomes that are best delivered through these types of projects.

Defra will open applications for further rounds of Landscape Recovery in spring this year and in 2024. 

Round two will focus on net zero, protected sites and habitat creation. This could include landscape scale projects creating and enhancing woodland, peatland, nature reserves and protected sites such as ancient woodlands, wetlands and salt marshes.

The roll out from Defra will continue for 2023 and 2024.

 

Please click the link here to access the full policy paper from DEFRA.

 

For further information or to discuss the new schemes and how they will be applicable to your individual circumstances, please contact one of our agricultural team on 01502 712122.

 

 

 

 

 

 

 

 

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Introducing Felicity Thornett

Felicity Thornett Chartered Surveyor

Felicity Thornett has joined Durrants as a Rural/Valuation Surveyor working across our entire area in Norfolk and Suffolk.

She is an experienced Chartered Surveyor and works across a number of Durrants departments, including Agricultural, Residential and Commercial.

Felicity said: “I’m really passionate about the area having lived here for a number of years, I’m already enjoying the variety of work, getting out and about to meet a diverse range of clients.”

“At a company like Durrants, we have such a great diversity of work and I enjoy grasping any challenge that comes across my desk.”

Felicity is a RICS Registered Valuer and member of the CAAV, the professional body for agricultural valuers. After studying law at university, she gained experience with both national and regional firms before moving to Durrants. She regularly undertakes a range of professional work including Red Book Valuations, Rural Estate Management and Farm Agency.

“One of the advantages of working with us is that we have experts across every aspect of property, whether it’s Agricultural, Commercial, Residential or Building Consultancy. It’s so important that our clients can tap into the knowledge we have across a range of services so they can receive the best advice.”

To find out more about the range of services Durrants can provide, click on our dedicated sections for Agricultural, Commercial, Building Consultancy and Residential.

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Consultation for a new NPPF is underway

NPPF consultation is underway

On 22nd December 2022, the Department for Levelling Up, Housing and Communities launched its consultation on proposed revisions to the National Planning Policy Framework (NPPF). Last updated in 2021, the NPPF is the starting point for all planning decisions and policies in England, and its content can significantly influence the ways in which our built and natural environments (and our local plans) evolve.

The consultation, which closes on 2nd March 2023, seeks to clarify housing delivery figures, promote beautiful homes, ensure food security and encourage onshore wind development, among other goals.

We have summarised the key proposed changes below.

     1. A relaxation of housing delivery targets for local authorities

Whilst the 5 year land supply (the requirement for local authorities to demonstrate a 5 year supply of land for housing at all times) remains, it has been tweaked slightly so that authorities with an up-to-date local plan (i.e. less than 5 years old) do not need to demonstrate a 5YHLS. The current buffers in place are proposed for removal, and LPAs can also allow for historic over (and under) delivery when calculating their housing needs figures.

The current presumption in favour of sustainable development remains intact, but again an amendment is proposed which would allow this to be waived where development would result in inappropriate density, or where a neighbourhood plan is in place and is less than 5 years old (this was formerly 2 years).

Overall, this is a fairly significant relaxation of housing delivery policy, despite the government reiterating their aim to deliver 300,000 homes per year by the mid-2020s – a figure which has not been achieved since the 1960s.

     2. More focus on beauty and the continued focus on design codes

Several insertions are proposed to encourage planning for beautiful buildings, over and above the previous wording of ‘well-designed’. 

Whilst design codes were a feature of the 2021 NPPF, they have now been inserted in a more explicit manner – for example, it is now proposed that ‘the primary means’ of ‘improving the design of development’ is through the use of local design codes.

     3. Climate change

Despite the claims of the consultation documentation, no new mentions of ‘climate change’ or the ‘environment’ are proposed. However, more support for renewable energy schemes and improvements to existing buildings is offered. A new section on onshore wind is proposed, allowing such development to be granted without planning permission where there is local support.

And for anyone who is wondering, there is no mention of street votes in the new NPPF!

The consultation is open until 2nd March 2023, with the revised NPPF due later this Spring.

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If wishes were sales, sellers would move

if wishes were sales

This time last year Russia hadn’t set foot on Ukrainian soil, the chickens were still to come home to roost for Boris Johnson, we had hardly heard of Liz Truss and were barely out from Covid restrictions: nor had interest rates reached a 14-year high or the nurses, train drivers, postal workers, etc., embarked on strike action. Also, the property market was only showing tentative signs of cooling.

It is difficult to imagine now how the property sector could not have been greatly affected by all that happened at home and abroad during 2022.

Yet despite all the political and economic turmoil, the property market is still active. If anything, the market has reached a more normal level of activity. It’s just that most activity is down to the doers and not the wait-and-seers.

There are two ways to sell property. The first is to let it happen. That has been fine over the past few years when all many had to do was to open the door to lots of open-house viewers and then bask in the flood of cash offers that ensued.

The second way to sell a house is to make it happen. Now that the market has turned in favour of buyers, sellers can’t sit back; they have to take the initiative. So, to location, location, location as a strong buying feature we must add price, price, price and condition, condition, condition.

Just as the recent seasonal festivities wouldn’t happen without people taking control and putting up decorations and cooking meals, a property won’t sell without some effort from sellers to prepare it for the market. If that means setting a competitive asking price and keeping a welcoming exterior and neat and spotless interior, then so be it.

Good estate agents are doers by nature, training and experience. But they can’t do it alone, they need their clients’ support and agreement. This teamwork is essential to get things done. To make things happen in the property market in 2023, don’t be a wisher be a doer.

We wish all our clients and friends a very positive, healthy and happy New Year.