Category Archives: Dawsons

Oliver Adair MAB
Dawsons, Mortgages

How will the new loan-to-income cap affect first time buyers?

Increasing house prices, restrictive lending and rising deposits have all been problems faced by first-time buyers in recent years. So, with the new loan-to-income cap now in place, how are newcomers to the market going to be affected?
Here the UK’s leading independent mortgage broker, Mortgage Advice Bureau, reveals how the cap will impact on the currently thriving first time buyer market.
“Recent figures released by the Council of Mortgage Lenders (CML) showed that first-time buyer numbers were at a six-year high, showing that a once impossible market has rebuilt itself to become a competitive arena once again,” said Oliver Adair from Mortgage Advice Bureau.
“Now, thanks to the Mortgage Market Review (MMR), responsible lending is at the forefront of the industry and each lender has been monitoring their affordability limits closely in light of the recovery of the sector.”
Enforced at the beginning of October, the loan-to-income (LTI) cap began when the Bank of England stated that loans over 4.5 times the income of the buyer must account for no more than 15% of a lender’s new lending total.
“Affordability remains the most important factor when assessing a potential borrower and every lender will have its own procedures to carry out to determine how the caps are implemented,” added Oliver.
Despite the added regulatory changes, the number of first time buyers rose by 27% in the first half of this year, and with the Help to Buy scheme, increasing employment levels and growth in higher loan-to-value lending, the confidence in the market may potentially overpower any effects the LTI cap will have in the coming months.
“The effect of the cap on the market and on the first-time buyer arena in particular will continue to be a topic of discussion until the cap has settled and we can see what difference, if any, it will have made,” concluded Oliver.
For further information please contact Oliver on 07917 146 430 or email olivera@mab.org.uk. Alternatively, please visit www.dawsonsproperty.co.uk

 

Chris Hope, Dawsons Senior Director
Dawsons, Mortgages

Nationwide survey settles the debate on buying versus renting

According to a recent estate agency survey, with interest rates still at an all-time low at the moment, buying a property is still cheaper than renting one.

Conducted by Relocation Agent Network, of which independent agent Dawsons is a member, the survey revealed that not only is it cheaper to buy, but you could make significant savings. Relocation Agent Network, a national network of independent estate agents, asked its members whether it was cheaper to buy or rent a property over the course of a calendar year. 87.5% said that it was cheaper to buy.

Christopher Hope, Property Partner from Swansea Relocation Agent Network member Dawsons, said, “This survey shows us that buying really is the preferred option when it comes to making cost savings.”

The national survey also looked at the possible savings you could make when buying a property instead of renting.

Based on a three-bedroom house, members were asked what they estimated the annual saving was from buying a property instead of renting. Over a third (33.85%) stated that it was possible to save up to £1,500 a year by purchasing a three-bedroom house instead of renting.

“At Dawsons, we understand that some people are renting because it’s their favoured method. Whilst others simply can’t get onto the property ladder – the so called ‘trapped tenants’ – but we’re here to help and actively guide all our clients through the buying process. Contact us today to discuss your options.”

L-R Chris Hope Senior Partner Dawsons and David Maternaghan MD, LEDs4ME
Dawsons

Leading estate agent boosts its green credentials with cutting edge LED lighting

Wales’ silver award winning estate agent Dawsons has pledged to slash its carbon footprint by installing brand new LED lighting across all eight of its sales branches.

The introduction of this new technology will reduce energy consumption as well as slash their energy and maintenance costs, harnessing excellent benefits for the planet and the company’s balance sheet.

“We are committed to reducing our carbon footprint and after discovering that our lighting accounted for a third of our energy usage, we just had to take action. The lighting upgrades aren’t just about reducing costs, the new LED lights will also create a better working environment for our staff. LED lighting is reportedly flicker free, whilst the easy to use mood settings ensure we can avoid the harsh lighting that make commercial premises uninviting to visiting customers,” said Chris Hope, Senior Partner at Dawsons.

Swansea-based LED designer and manufacturer LEDs4ME will carry out the installations. Dawsons’ Morriston branch has now been fully retrofitted, whilst work is underway at their remaining branches to ensure each office can fulfil the goals of the company’s new energy saving plan.

David Maternaghan, Managing Director at LEDs4ME, added: “LED technology has evolved dramatically in recent years and it now offers businesses like Dawsons the ultimate solution to cutting costs and reducing their energy outgoings. With a 7 to 10 year lifespan, LED lighting also provides a long-term option to any business’ lighting needs. When they do reach the end of this lifespan LED lights don’t release harmful lead and mercury found in many incandescent tubes, which reduces environmental impact further.”

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Dawsons, Mortgages

South West Wales Estate Agents add expertise to Agents’ Mutual

Leading Estate Agents from across South West Wales are putting their collective weight behind Agents’ Mutual, a new online property portal set to compete with Zoopla and Rightmove.

So far 115 agents (effectively 85% of all agents) including Astleys, Carter Phillips, Clee Tomkinson Francis, Dawsons, John Francis and Fresh, from across the region have committed to join OTM and will be moving away from either Rightmove or Zoopla.

Therefore the new portal will immediately become the carrier showing the most properties in this area. This is a major change and a significant development for those interested in buying or selling property.

Agents’ Mutual is set to launch its UK-wide website with the domain name ‘OnTheMarket.com’ in January 2015 with around 4,000 agencies already recruited.

Unlike its competitors, Agents’ Mutual will be 100% agent owned and there is a consensus among agents that ‘OnTheMarket.com’ will be give their client base more choice.

“This is a chance to support and play an active part to developing what is expected to be, the country’s ‘most complete’ property portal, which doesn’t happen very often and Dawsons along with the majority of Swansea agents have signed up to make sure the public get the best property portal,” said Dawsons Senior Partner Christopher Hope.

“The clear advantage of this portal over others, will be the genuine opportunity for clients to see the largest available choice of homes at the click of a button.”

Nigel Jones, Director at Astleys, is confident ‘OnTheMarket.com’ will present more than adequate competition for Zoopla and Rightmove.

“It will be a website designed by agents for buyers and sellers. There will be no subliminal adverts or distractions just properties. This will give a better user experience to clients and customers. It is also the only property portal to be endorsed by the National Association of Estate Agents,” said Nigel.

“The impact of these portals have revolutionised the way buyers and sellers search for properties but this duopoly exercise too much influence and the market needs a further portal offering a different and clearer message.”

Matthew Wiggall, Director at Fresh, said: “The introduction of ‘OnTheMarket.com’ is hugely exciting and a welcome change for property agents. We at Fresh have been a supporter from an early stage and firmly believe it will quickly become the public’s first choice to search for properties after its launch in January 2015″.

James Phillips, Director at Carter Phillips, and Neil Jones, Business Development Manager at Clee Tompkinson Francis, agree Agents’ Mutual will provide legitimate competition for the other property portals.

“It is great we as agents have come together to create this portal in competition to Rightmove and Zoopla and the plan is that it will become a one-stop-shop for our customers. We need this in the marketplace,” said James.

Neil added:“Agents’ Mutual will provide a property-search service to agents, their clients and the property-seeking public which is not driven by the narrow requirement of maximising returns to shareholders.

“All the profits will be put back to improve the portal or keeping advertising fees as low as possible. That is the key.”

That is a view backed up by Paul Beaton, Director at Astleys. “The site will be run by agents and we feel that will work better for agents not onlyin this part of Wales, but across the country. It gives us more control on the marketing of the site.”

Former CEO of Primelocation, Ian Springett, has been appointed Chief Executive ahead of the portal’s launch.

“We’re delighted that over 100 quality estate and letting agencies across south-west Wales have signed up with us. Their collective support is a resounding vote of confidence and a major boost to our market strength in Wales,” said Ian.

“We’ll be hitting the ground running in South West Wales as soon as we launch in January 2015 and I’m confident that such a strong strategic message of commitment will also serve as yet another tipping point for many other independent firms to join us to create a winning portal that serves all agents across the UK.”

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Dawsons

Becoming an estate agent proves to be the nation’s top career move

As the market continues to gain traction, Dawsons has revealed a new industry focus as the role of an estate agent becomes the nation’s hottest property.

The award winning estate agent has recently recruited five new employees, each of which will take on a ‘Saturday negotiator’ position at one of Dawsons’ 13 branches.

“Welcoming five new members to the team shows a new level of respect for becoming an estate agent. All of our new starters are passionate about pursuing their positions as a long-term career, and for some it can offer the perfect route to getting back to work after having a family,” said Chris Hope, Senior Partner at Dawsons.

Graduate Myles Ellis Thomas is one of the new starters that has recently joined the Dawsons team. After studying law at the University of Leicester, Myles returned to his hometown of Cardiff and applied to Dawsons soon after. As a Welsh and French speaker, the Dawsons team will not only benefit from his legal expertise but also his multi-linguistic talents to reach a wider range of customers.

Myles added: “Despite only being with the company for the past few weeks, I’m really enjoying the training to become proficient with the varied workload aspects that this industry has to offer. No two days are the same, and it’s a great feeling to help find a buyer that special place that they can call home.”

Katie Skilton is a young mum who’s joined Dawsons Morriston office, to be trained as a ‘Saturday negotiator’. ‘I’m delighted to have the chance to get back into work and within a company who offer great career opportunities of full time work when I feel I’m ready’

“As the industry changes and the role of the estate agent enjoys higher respect, myself and the rest of the Dawsons team look forward to watching our company and the wider industry grow and develop further,” concluded Chris.

aPress (2)
Dawsons

Award winning estate agent sponsors exclusive event to raise funds for inspirational South African building project

Wales’ silver award winning estate agent Dawsons has sponsored a fundraising dinner to show their continued support to the Making Swansea Proud Initiative.

The Making Swansea Proud Initiative was set up in 2008 to support the Niall Mellon Township, which already holds a special place in the company’s heart. Members of the Dawsons team, including Senior Partner Chris Hope and his son Tom, have personally volunteered with the trust in the past.

This longstanding relationship has seen Dawsons continually support the Making Swansea Proud initiative, which has seen a staggering £50,000 raised by the people of Swansea for the project. Together with eight-time volunteer Brad Wood, five-time volunteer Andrew Thomas and former Dawsons employee Natasha Gallivan, the team will be hosting a gala dinner at Swansea’s Marriott hotel on the 12th September, where they are looking to raise a further £10,000 to help build a school in South Africa.

“The charity deliver blitz building projects and volunteers can have a real hands on experience to help build homes and schools for impoverished families in Nelson Mandela’s native Eastern Cape. Their work is fundamental to building a better South Africa and we as a business are proud to support this initiative. Whilst I can’t volunteer in person this year – fingers crossed for next year though – Natasha and Andy will be putting on their overalls and hammering away during this November’s trip,” said Chris.

The charity has been responsible for building 25,000 homes in South African townships meaning 120,000 people could be rehomed. Their most recent project saw them move from housing to education and in March 2014 volunteers spent a week at a school in Imizamo Yethu, Cape Town, improving facilities for over 300 pupils.

Chris added: “A flurry of generous donations from the Swansea community meant we could donate £5,000 to their Cape Town project and we are delighted that our employees, like Tom and Natasha, have an avenue to achieve some of their personal goals. Natasha has played a key role in organising this dinner, which we are also particularly proud of and we hope that the fundraising dinner will mean many more projects can go ahead for the charity.”

The dinner will see Swansea University’s Professor Marc Clement and charity Founder Niall Mellon deliver inspirational talks.

Tickets for the dinner are priced at £495 per table or £50 a head. Ticket prices include a three course dinner, wine, entertainment and a ‘money can’t buy’ raffle and auction, consisting of prizes donated by an array of generous local trades and individuals. Please call Dawsons on 01792 641035 to purchase your tickets.

David Treharne
Dawsons, Lettings

Could letting out your property provide the extra income you need?

Whether you are new to the buy-to-let scene or an experienced landlord, fully understanding the ins and outs of buy-to-let mortgages is essential when managing your property portfolio. Here the UK’s leading independent mortgage broker, Mortgage Advice Bureau, offers the ultimate guide to letting out your property.

There are two main ways that buy-to-let properties can make you money. Capital growth is where the value of your property increases over a period of time, and while property value can increase, it is important to remember that it can also come back down as local house prices and market conditions fluctuate. The alternative way is via rental income, which is the amount of money that you receive from your tenant.

“It is not uncommon for someone to become a landlord accidentally. You may meet a new partner and move in with them whilst keeping your own to rent. You may have to move abroad to work but want to keep your home in the UK, or you may simply have difficulty selling your property. If this is the case, there are certain steps you should take when making the decision to turn your home into an investment,” said David Treharne from Mortgage Advice Bureau.

Telling your mortgage lender about your change in circumstances may sound simple, however, many would-be landlords overlook this. Your lender needs to give you formal ‘consent to let’ before you can let out your property, which may mean a higher buy-to-let interest rate. Whether you are opting for the most common form of tenancy, Assured Shorthold Tenancies (AST), or an alternative, failing to notify your lender will put you in breach of your mortgage agreement.

Telling your insurer is also integral to your success as a landlord. Your standard Buildings and Contents insurance policy will not cover you if the property is to be let out. Instead those looking to let their property should take out specific Landlord’s Insurance.

David added: “Seeking assistance from a letting agent is advised, and an experienced agent can help you set yourself up as a landlord or manage your property for a small fee. Your agent will be able to advise on buy-to-let mortgages, which operate in a very similar way to a residential mortgages. Despite having similar rates, fees and charges, a buy-to-let mortgage does have a few key differences.”

Mortgage interest rates for these types of mortgages tend to be higher than those for residential mortgages on your home, and the loan-to-value (LTV) is generally lower. Affordability is also assessed differently; whilst employment income, benefits and a combination of other sources are used to evaluate your ability to repay the loan, income is assessed as a percentage of your mortgage payment which is usually at least 125%.

“To explain, if your mortgage payment is £700, you would need to attain rent of at least £875. It is important to note that the rental value of your property would need to be confirmed by a surveyor.”

There are also different taxes with a buy-to-let mortgage, Stamp Duty has to be paid on a purchase of any property worth more than £125,000, but you may also have to pay Income Tax on the rent you receive and Capital Gains Tax when you come to sell the property. You must state your rental income on a Self-Assessment Tax Return but you can take off costs such as mortgage interest and letting agency fees from the rent before you declare your income.

Maintenance costs, annual safety checks, Landlord’s Insurance and Rent Insurance are all costs that need to be considered, even though they may not be taken into account by the mortgage lender.

“Landlords with more than one property should also seek independent advice as some lenders will only lend on properties valued above a certain level. Although this is usually around £40-50,000, there are some that specify minimum valuations at a level of £100,000 and above. Some also restrict the number of properties you can own or the maximum amount that they will lend to you in total,” concluded David.

For further information please contact David on 07501 720320 or email davidtr@mab.org.uk. Alternatively, please visit www.dawsonsproperty.co.uk

 

David Parton 2
Dawsons

Booming property market results in period of growth and expansion for leading estate agency

Swansea’s largest independent estate agent undergoes dramatic growth and expansion and after recent success at The Lettings Agency of the Year Awards 2014 Dawsons has been looking in on itself to find those individuals who can continue this success.

One such individual is David Parton who is progressing from Office Manager to full Branch Manager. David will now be moving from Dawsons’ Mumbles branch to take on his new role at the Killay office. The new position is symptomatic of Dawsons’ progress and reliance on committed, professional staff. David’s tried and tested methods during 8 years with the Mumbles team is proof of the winning qualities needed to steer the way to future successes in the buoyant property market of recent times.

“I have gained some fantastic experience as Office Manager at our Mumbles branch as well as an extensive knowledge of the local market. I look forward to the change of area and getting my teeth into the challenges that lay ahead,’’ added David.

“I am delighted to announce the promotion of David Parton, each of which have developed within the business. Myself and the rest of the Dawsons team look forward to watching them advance further,” – Christopher Hope, Senior Partner at Dawsons.

David Treharne
Dawsons, Mortgages

How is the Mortgage Market Review helping you prepare for the future?

With mortgage rates now increasing, both current and prospective homebuyers need to be aware of the increase in their mortgage repayments when interest rates eventually rise.

The Mortgage Market Review (MMR) was officially introduced by the Financial Conduct Authority (FCA) in April to allow lenders to determine a borrower’s affordability. Here the UK’s leading independent mortgage broker, Mortgage Advice Bureau, reveals how the Mortgage Market Review’s stress test could help buyers prepare for the future.

Under the MMR rules, lenders must check that you can afford your repayments both now and in the future, and they do this through processes such as mortgage stress tests. The stress test gives lenders all the information they need regarding your finances, from how much you earn to how much you spend on food, utilities and even leisure.

“With a base rate rise inevitable, the FCA has stated that borrowers must not receive a loan if a bigger mortgage repayment could ‘break’ their finances. You will be extensively checked, with your day-to-day finances and spending coming under intense investigation,” said David Treharne from Mortgage Advice Bureau.

“Research carried out by Experian this month revealed that homebuyers are underestimating what their mortgage repayments could be by as much as £650 if interest rates were to rise. Whilst this may sound like a frightening statistic, this is one of the main reasons why the MMR has been introduced to the market.”

As well as ensuring that a return to irresponsible lending that took place in the run-up to the credit crisis is avoided, the MMR aims to protect borrowers from falling behind on their repayments so doing a check now will prepare you in good time for when rates rise.

When the Bank of England’s Monetary Policy Committee votes to increase the base rate, expectations are that it will be increased in a controlled manner until it reaches between 3-6 per cent to minimise the risk exposure level.

David added: “If a homebuyer was to purchase a £235,000 property and had a combined average household income of £50,674, research by Experian shows that they are claiming they can afford an average mortgage repayment of £780 per month. However, if rates were to increase by 5.5 per cent at the end of a typical two-year fixed deal, the homebuyer could find themselves paying around £1,440 per month!”

As the economy continues to improve, interest rates are inevitably going to rise. This is why it is better that the MMR is letting borrowers know now how much they can afford, rather than a year from now, when it is too late.

“Whilst the MMR continues to look to the future, so should you. Regardless of what measures are taken by the Bank of England and the Government, there is always going to be a risk factor when taking out a mortgage, which is why considering taking out income protection insurance and seeking professional advice should be a serious consideration,” concluded David.

For further information please contact David on 07501 720320 or email davidtr@mab.org.uk. Alternatively, please visit www.dawsonsproperty.co.uk

Bethany Lane Mumbles-31
Dawsons, New Homes

Prestigious housing development in Bethany Lane now released for sale

Luxury house-builder Hale Homes is about to release their prestigious Bethany Lane development, close to the village of Mumbles.

Currently under construction, the project will comprise of a selection of just ten, individual, detached homes, offering purchasers an opportunity to acquire a newly built, energy efficient property in this highly sought after location.

A choice of four or five bedroom properties are available, all of which are designed for modern family living with features such as open plan rooms opening onto the garden.

Leading estate agent Dawsons has been appointed as Sole Agent and the development has already attracted a flurry of interest from waiting buyers.

“We are delighted to be chosen as Preferred Agent by Hale Homes and look forward to offering these beautifully designed homes, which are so ideally located, to the wider property market,” said Tim Kostromin, Partner at Dawsons.

Hale Homes has already headed a number of luxury developments throughout South Wales and is famed for using materials from high quality, local and sustainable sources. Previous projects have boasted internal finishes such as oak flooring and doors throughout, and features such as granite worktops and fully integrated appliances in their kitchens. This latest project is set to follow a similar suit and prospective buyers can look forward to homes built to the highest standard.

Jonathan Hale, Managing Director at Hale Homes, said, “We have earned a well-deserved reputation for excellence throughout South West Wales and we are certain that this particular project will be the ‘jewel in the crown’ as well as a great addition to the Mumbles community.”

Tim added: “It is a rarity for such an exclusive, private development to become available in what is a perfect location. Bethany Lane has long been considered a highly desirable address and is tucked away just off the Mumbles Road with the promenade just a stone’s throw away. We are anticipating high demand for the development and will be taking reservations through our Land and New Homes Department on an off-plan basis whereby a reservation fee will secure a property at a fixed price.’’

For further information please call Dawsons dedicated Land and New Homes department on 01792 653100 or email newhomes@dawsonsproperty.co.uk. Alternatively, please visit http://www.dawsonsproperty.co.uk/land-new-homes.php.

You can also contact Ruth Jones at Hale Construction on 01792 462877 or Ruth.Jones@haleconstruction.co.uk for further details about the Bethany Lane development and Hale Homes’ upcoming projects.