Do you know the literal definition of a hotspot?  It is “a small area with a relatively high temperature in comparison to its surroundings.” However, in the property market, a hotspot is a place of increased popularity, interest and activity. Of course, it depends on the type of hotspot – as estate agents in Sheffield will clarify, there are various areas which have recently increased in popularity.

In this article, we attempt to define them and the reasons why they are hotspots.  Your home could be in one!

Pricing: 

House prices have risen and are continuing to rise, despite predictions to the contrary.  However, no matter where a person’s dream home may be, affordability has to be taken into consideration. Recent surveys have shown that prices in the north are generally lower than in London, other cities and the south. The cost of living in the locality is also an important factor. Hotspots are increasing where affordability is viable.  A check on prices in various locations over the past 3 years can generally point to whether or not the location is in an “increasing price” spot.  According to an expert, “Many of the areas that saw the biggest house price growth over the last year enjoy a combination of greater affordability and space compared to nearby cities.”   

Infrastructure: 

In developing, scantily populated areas, planned and ongoing infrastructure projects could make the location a hotspot. The projects will not only create employment and lead to better civic administration and connectivity, but will also boost commercial development. Research into such projects, with the timeframe by which they will be ready, will provide details of the growth development expected in the area. Such locations could become property hotspots.

Facilities: 

Areas which offer attractive facilities automatically gain in popularity. A good internet service is essential. So are transport connections, shopping, medical facilities, educational institutions and entertainment centres. Security and areas with a low crime rate are increasing in popularity. Space for car parking or a garden are plus factors. If more people are moving to the locality, it shows the buyers’ confidence in the area.

Lifestyle changes:  

With remote working during the pandemic, a definite swing in priorities where housing was concerned came into effect. People started looking to move out of urban areas to the suburbs and rural areas, where larger, more spacious accommodation was available at lower prices. Outdoor recreational areas became a plus point, caused by the need for both living and working from home. Some of the popular areas are located in Kent, Yorkshire, Derbyshire, Nottinghamshire and Hampshire.

Now that near normalcy has returned, with some people going back to offices for work, another trend of returning to the cities or surrounding areas is taking place. More popular are the towns near the cities, where property is cheaper to buy but which also offer good commuting services. Increasing interest has been shown in the counties surrounding London, the South East, South West, Midlands and Cotswolds.

Coastal areas: 

Some of the people who want to continue working online from home without returning to offices have shown an increasing interest in coastal areas. Competition for homes in these areas has risen. Larger accommodation and the peaceful, scenic beauty combined with interesting entertainment facilities have made these locations property hotspots. Earlier, they were generally used for holiday homes, but flexible working conditions have seen more people investing in and living in these areas.  

Foreign investment: 

Although London will continue to be the priority for foreigners investing in property, recently there has been increased interest in other areas as well which are offering good returns for less expensive investments. Data shows that more foreign investors are looking at areas that have been redeveloped and regenerated such as Manchester, Salford, Leeds and Liverpool. Flats and apartments seem to be popular, which helps to meet the demand of the high rental market in these areas.  

Conclusion:   

The above details may answer the question to whether or not your home is in a property hotspot. Investment in likely hotspots may bring good returns. The main goal for a property investor is to obtain an increase in the value. However, there are risks as well which could reduce the resale value. The supply against demand imbalance, delays in completion of projects leading to poor connectivity are risks that need to be taken into account. If your home is in a location that meets the definition of a hotspot, we hope that the “small area” continues to keep a “relatively high temperature (increase in popularity) in comparison to its surroundings”! This will have a good impact on the value of your home.

There are numerous factors to consider when purchasing a home for the first time. It’s likely one of the most important decisions you’ll ever make, so ensuring sure you understand the process is essential. If you’re not sure how to buy a house, check out the guide by estate agents in Orpington for first-time buyers below.

Putting money aside for a deposit

Saving for a deposit is among the initial steps in the home-buying process. The average deposit for a first-time buyer is roughly 20% of the purchase price, which may entail saving £20,000 or more. Be realistic about how much money you could save each month, check all of your expenses, and see if there are any areas where you can save money. To save money on rent, many first-time buyers nowadays consider moving in with their families. Although this isn’t an ideal circumstance, it can assist you in saving a lot faster, so that you’ll be close to getting your own room again.

A useful hint is that saving is always simpler on payday. You’ll find a way to live without it if you immediately deposit as much money as you can into a different account. 

Looking for a House:

Finding your first house should be high on your priority list, so think about what you want.

Should you buy a house or a flat? Which is better: freehold or leasehold? Freehold property means you own the ground on which your house is built. A leasehold means you possess the property but must pay the freeholder rent. Is it an existing property or new construction? What is the reason for the property’s sale? Since when has it been available? Is the seller looking for a new home? Have they received any other offers?

Once you’ve chosen what you want, start looking for your ideal home and scheduling viewings. It’s a good idea to compile a list of all the questions that you would like to ask before you get to the property, as it’s easy to forget things. It’s also a good idea to take along a family member or friend who could encourage you to discuss the critical questions.

Including a second person ensures that someone will be present to provide an unbiased opinion. Consider that as a first-time buyer, you’re more appealing to sellers because you don’t have anything to sell and are more inclined to want to settle in as soon as possible.

Mortgage 

There are several types of mortgages offered to first-time buyers, and it’s vital to understand what each one means. The loan-to-income ratio is typically capped at four and a half times your income by most mortgage providers. Mortgages are normally paid off in monthly instalments over a period of 25 to 40 years. Because the bank will charge extra on your loan, you will end up repaying higher than you borrowed.

Take the time to compare the interest rates offered by different mortgage lenders, as some provide better bargains than others. Your mortgage provider will require a lot of material from you in order to determine how much of a risky borrower you are. There are ways to lower your mortgage payments, but remember to seek legal counsel when selecting the right mortgage type for you.

Making A Purchase Offer

Once you’ve discovered your dream home, you’ll need to submit an offer through an estate agent. You may be required to show proof that you can acquire a mortgage based on an agreement concept. You must properly take out a mortgage once the offer has been approved. For people looking to purchase their first house, the government offers a variety of programmes.

What Does Stamp Duty Mean?

When you purchase a home or land in the U.K. for more than a particular amount, you must pay Land Tax. The amount you must pay is determined by the property’s worth. First-time buyers, on the other hand, are exempt from paying duty on the initial £300,000 up to a total of £500,000. The 5% charge applies solely to that part of the transaction (nothing less than £300,000). To qualify for this reduction, you must have never held a property, whether purchased, gifted, or inherited, within the United Kingdom. You must also live in the property you are purchasing; you cannot rent it out. If you are purchasing a home with a partner who is not a first-time buyer, you will be ineligible for the exemption.

With these few pointers, it will be easier for first-time buyers to select and purchase a property.

Knowing what buyers want when it comes to a property will not only ensure that your home sells quicker but also for a greater sale price.

Every year, a large number of homeowners in the United Kingdom spend money on renovations in order to raise the value of their properties. While some people are ready to spend a lot of money on major home upgrades, not all large projects yield the best results. When it comes to determining the home’s value, small modifications can save you a lot of money. 

As Cheltenham Estate Agents, here are some of our best recommendations for raising the value of your property.

Makeover of the outdoor spaces:

Outdoor space is just as vital as your indoor space. Spending a little money on your garden will boost the total value of your home. To make the exterior space appear more appealing, consider adding a small patio or a paved walkway.

Just by enhancing your property’s ‘kerb appeal,’ you can increase the value of your home by up to 10%. A newly painted façade, a tidy driveway, a new front door and clean windows can all help. When potential buyers browse online or come in for a viewing, the first thing they see is the outside of your home.

Changing the internal layout:

A layout that is in demand is open-plan living. It has been popular for a long time and shows no signs of going out of style anytime soon. Most modern house buyers are searching for places that are functional and versatile, and cooking your food in one area and then having to transfer it to another to consume it seems a little out of date.

You want to create places that are connected but unique, so open-plan living spaces don’t have to be huge or rectangular. Consider separating your room with sliding doors or drapes that can be drawn back during daytime, waist or shoulder-high separators, or doorway-like arches.

A few spacious bedrooms are preferable to a number of small rooms. Consider tearing down walls to expand and enlarge your bedroom.

Adding additional bedrooms and bathrooms:

You should think about converting unused space in your house into a guest bedroom. Otherwise, if you opt to have a house extension, you might take into account the expenses of a new bedroom.

The number of bathrooms, like bedrooms, is a ranking factor for your home, and it’s an important figure in evaluating the property. A little downstairs lavatory may be a simple way to extract profit from wasted space. You can make use of a broom closet, pantry or storage under the stairs to create a small downstairs loo.

Adding a second bathroom can increase the value of your home by up to 5%. 

Converting a loft:

Attic space can be useful if converted into a usable area such as an office, bedroom, gym, or storage space. It’s a waste of valuable space to keep your loft empty. Prioritize underutilised spaces such as the loft if you do choose to spend on renovations.

Loft conversions can be difficult to execute properly. But if done well, you may reap significant domestic and financial benefits.  Increasing square footage of your house will definitely increase its value. Given the market’s obsession with the number of bedrooms, adding one may almost assure a large profit when it comes to selling.

Loft conversion costs roughly £40,000 on average, but it can raise the value of your home by up to 21%. They’re normally a long-term approach, so if you sell right away, you may not get all of your money back.

Loft conversions aren’t cheap – and aren’t appropriate for every home. However, with the right kind of property, they can certainly be a lucky bonus.

Decoration of the interior:

Another common improvement option is redecorating. To modernise a property, you don’t need to invest a lot of money. To breathe fresh life into various areas of your home, you can redo walls, apply new wallpaper, purchase new furniture, and possibly do some basic cleaning and upkeep.

A well-designed kitchen can easily attract more potential value. Similarly, a fresh coat of paint may instantly make claustrophobic spaces more marketable.

Your home may not be brand new, but it will appear that way to potential buyers, and you’ll be doing yourself a favour if you can make it appear appealing as soon as they walk through the door.