2017 has been another year full of surprises, political changes and conflicting headlines. As the year draws to a close, Romans’ Directors have reflected on the big changes in 2017 and what they predict will have the biggest impact on the property market in 2018…

Antony Gibson, Managing Director of Sales at Romans says: “Over the past two years, there is no denying that transaction levels and price growth have steadied as buyers and sellers took a wait and see approach following Brexit, the US election, the UK election.

Buyers now have more information at their fingertips than ever before and affordability has been limited due to stricter mortgage lending criteria, the prospect of increasing interest rates and inflation growing faster than wages. Sellers, whilst able to set asking prices, will better recognise that buyers and their limited affordability will be a big factor in determining the final property sale price.

However, the balance is that there remains to be a strong demand for property and supply fails to meet needs – so, when applying simple rules of economics, the lack of supply is likely to keep the market moving in a broadly upward direction.

The government’s announcement that first time buyers will be exempt from paying Stamp Duty, is not only great news for first time buyers, but also the housing market in general. More activity at the lower end of the housing market is a benefit to everyone as the increased confidence will filter up. Those looking to take their second step up the property ladder will now benefit from more prospective buyers and new homes developments are also likely to see more interest.

Our prediction for this year is that the market will remain steady, confidence in it will increase and many of those who had put moving on hold in 2017 will choose to move in 2018 recognising that putting their lives and moves on hold benefits no one."

Michael Cook, Managing Director of Lettings adds his predictions for the next 12 months, “The rental market remained stable in 2017, there was a strong demand from tenants throughout the year and, in August we set a new record for the number of tenants moving in! Although in some market places average rents remained flat, many of our locations demonstrated a growth of between 1-2.5%.

With a healthy demand from tenants and, slightly reduced capital values in some locations, it’s unsurprising that 1 in 4 of all new buyers who registered with Romans were looking to purchase a buy-to-let property. Despite the high number of registrations, only 1 in 8 properties were sold to investors. This uncertainty is most likely a result of the changes made by the government to tax relief for landlords as well as the increase in Stamp Duty and of course, the impending Brexit deal.

Whilst the political landscape is unclear and will no doubt cause some investors to pause and think before committing to a purchase, we believe the rental market will provide consistent returns for landlords with no real signs of tenant demand abating. Although, returns may not be as buoyant as previous years, we predict increased rents of around 1-1.5%.

With rents slowly rising and the introduction of legislation to regulate the industry (something we’ve campaigned for as members of ARLA for some time), tenants will benefit from an improved financial position. Following in the government’s footsteps, we are looking closely at how we can positively impact the lettings market for landlords and tenants alike.

With the recent rise in interest rates, we asked our Mortgage Director, Greg May to predict what will happen in 2018 and explain the importance of reviewing your mortgage annually.

“Financial experts predict that there will be another rate rise on the cards for 2018 which is great news for savers and those who are currently sitting on a fixed rate mortgage. Whilst future rate rises aren’t likely to cause a financial crisis thanks to the stress testing lenders have placed on applicants to ensure repayments remain manageable if rates rose by between 5 and 7%, those sitting on standard variable rate mortgages may find they are overpaying unnecessarily.

I recommend reviewing your mortgage annually, just as you would your gas and electricity bills to ensure you are on the right product for your circumstances. With a future rate rise almost a certainty, this is now more important than ever.”

The rate of price increases has certainly slowed but by no means stalled. Slow, consistent growth is the signs of a healthy market and is not a reason to put moves on hold. The biggest challenges to the property market are government changes including the increase in interest rates and Stamp Duty, which limit buyer and tenant affordability. The slight fall of transaction levels in 2017, along with steadying prices does mean that mean that accurate pricing and understanding of demand in the local market will be key success drivers for both sellers and landlords in 2018.

Could the traditional Christmas pudding soon be in danger of being consigned to history and replaced by a sponge alternative?

For the first time Tesco has this year more festive sponges on offer than Christmas puddings – 12 sponges compared with 10 traditional puddings.

The change has come because younger diners, and Millennials in particular, prefer sponges as they are easier to digest compared with heavier, fruited puddings.

In 2013 five times as many shopper bought Christmas puds compared to sponges. Now, it's only twice as many, and that gap is predicted to narrow even more this year.

Last Christmas Tesco saw demand for sponge alternatives grow by nearly 10 per cent on the previous year while sales of traditional puds remained stable. This year it is expecting even more customers to be in favour of sponges.

Tesco seasonal bakery buyer Vicky Smith explained:

“These sponge alternatives are proving popular as tastes are changing, particularly with younger people who are generally not so keen on fruited puddings.

“There is also more innovation to be found in sponges as shapes and centres can be different – such as our finest*Orange Liqueur Sponge with Belgian Chocolate Sauce, that you pour into the middle and let it gently cascade out.

“Another top seller in the run up to Christmas this year is our finest* Gingerbread and Butterscotch Melt Pudding.

“Along with sprouts, pudding is now the most divisive part of the festive feast – the choice between a traditional Christmas pud or a modern alternative.

“But if demand carries on at its present rate it might not be too long before the festive sponge takes over completely.”

A major milestone in Haringey’s ambitious plans for Tottenham was reached today with the signing of the development agreement for the High Road West scheme with leading developer, Lendlease.

The High Road West development, opposite Tottenham Hotspur’s new stadium, will deliver benefits for the borough including:

• More than 2,500 high quality homes, with at least 750 affordable homes for local people
• 191 high-quality council homes which will be managed by Homes for Haringey, meeting the aspirations of the Resident Charter agreed with local residents
• A cutting edge new library and learning centres
• A refurbished community hub with new facilities at the Grange
• A new civic square for community activities and cultural events, flanked by new shops, restaurants and cafes
• New green spaces including gardens, children’s play area and outdoor gym
• More than £10million social and economic support for businesses and residents
• Investment in the town centre and community events
• Thousands of construction jobs and hundreds of new jobs following development
• A new industrial space to support businesses from the existing Peacock Industrial Estate
• A new district energy centre

‘Tottenham is London's most dynamic and important regeneration area and this is an exciting landmark in our ambitious plans to bring thousands of new homes and jobs to the area in the next two decades. This regeneration scheme has been strongly supported by tenants with local people heavily involved in shaping the plans for High Road West. Its welcome news that getting started on the scheme has taken a big step forward today.’

People needing help from food banks in Sandwell are benefiting from a Christmas collection organised by council staff.

Crates of donated food are going to West Bromwich Food Bank, with £520 raised in cash donations going to Breaking Bread Food Bank in Wednesbury and The Well Food Bank in Tipton.

The council’s education benefits office has organised a collection for several years on the first floor of Sandwell Council House, Oldbury. This year, the team expanded its collection and received donations from across the Council House as well as council offices at Jack Judge House, Oldbury, and Providence Place, West Bromwich.

Items donated by council staff and their families range from pasta, sauce and tins to Christmas puddings and chocolates.

Local companies Clarke Transport’s head office in Oldbury and FCL Global Forwarding Ltd in Smethwick also supported the initiative.

Councillor Steve Trow, cabinet member for core council services, said: “I want to say a big thank you to the council staff who organised this collection and to everyone who donated items or money. Staff in the education benefits office work day in, day out with families who need help and support, so they really understand how difficult some local families are finding it to make ends meet. Their effort over several years to collect items and raise money makes a real difference to local people.

“We also thank the many fantastic volunteers at food banks in Sandwell who support local families all year round.”

Keith Turner, from Elim West Bromwich Community Church, which runs the West Bromwich Food Bank, said: “We would like to say a big thank you to the education benefits office for organising the food collection this Christmas.

“They collected a massive 320 kilos of donations which will make a real difference to residents of West Bromwich and Sandwell who are in crisis, often through no fault of their own. The seasonal donations will also help to make their Christmas a little happier. Thank you again to all who contributed.”

The Elite Centre for Manufacturing Skills (ECMS) has helped a local engineering company create the right pattern for plugging its skills gap by taking on a new apprentice.

The ECMS is a new employer-led training facility for the Black Country, designed to enhance productivity in the region’s high value manufacturing sector by providing specialist training and helping to close skills gaps identified by employers.

Following a visit to The Skills Show in November, Christopher Ravenall, 20 from Castle Bromwich, was introduced to Elkington Brothers Ltd, a pattern and toolmaking firm based in Great Barr, Sandwell.

James Kelly, Managing Director at Elkington Brothers Ltd, said:  “We have an ageing workforce and an ever-increasing skills gap but we’ve struggled historically to find a course suitable for new apprentices.  We’ve worked closely with the ECMS in relation to developing relevant course content and an apprenticeship which covers the depths needed for pattern and tool making.

“Since the recession, demand for our products is on the increase and we’re looking to diversify into the rail and aerospace industries so ensuring that the workforce has the skills needed is a priority for the business.”

Christopher said:  “I didn’t have that much luck going through the traditional education system so thought that an apprenticeship would be a good alternative route to take.  My father is a toolmaker and I’m really keen to learn as much about the industry and engineering as I can in order to have the brightest future.”

Trevor Codner, Business Development Manager at the ECMS, said:  “We work with a variety of employers to find the right apprentices for them, and we work with our partners to ensure that the courses are fit for purpose in relation to the skills that are needed in the industry.

“Christopher was desperately looking for an opportunity and we were able to match him, not only to an apprenticeship that he was interested in, but we also found a suitable employer where he’s now working full-time.”

Set to open in January 2018, the ECMS Hub will be based at the University of Wolverhampton’s £100 million Springfield Campus and will deliver skills training, through short courses and apprenticeships, at four Spokes across the Midlands.

ECMS is a collaboration between the Black Country Local Enterprise Partnership, University of Wolverhampton, Dudley College, Cast Metals Federation, Confederation of British Metalforming and the Institute of Cast Metals Engineers.

Employers or potential apprentices should contact Trevor Codner at the ECMS on 0800 953 3222 or 01902 321663.

The 29th of December will once again be the best day for Brits to re-sell any Christmas gifts that aren’t right for them and make self-improvement purchases ahead of the new year, according to data* by online marketplace eBay.

Christened ‘Boxing Up Day’, the 29th of December is the day each year when Brits pack up the Christmas gifts that haven’t quite hit the mark and list them for re-sale on eBay.

This modern-day Christmas tradition returns, as data** shows households across the UK are set to receive more than £850million worth of gifts that aren’t right for them. One in five of Brits stated that they would use the money they make from re-selling Christmas gifts to fund their new year goals,  with the average person set to spend £511*** in January on items including new clothes, DIY, hairstyles and fitness equipment.

The biggest motivator for these self-improvement purchase decisions is weight-loss (30%), followed by stress relief (12%) and making new friends (10%).

Between 9pm and 10pm on 29th of December is the best time to re-sell gifts on eBay as the online marketplace sees a peak in searches - one every eight seconds - as a third of Brits admit Christmas fatigue has set in and 81% said they are fully focused on the year ahead by this point in the festive break.

This year the analysts at eBay have trawled through all the data from 2016 to create a list of the best items to re-sell on the 29th of December, based on best sellers from last year between 27th – 30th December, that can support new projects:

1. DVDs and blu-rays (30,404)
2. Home Décor e.g lamps, vases and soft furnishings (18,062)
3. DIY materials e.g. powertools (15,831)
4. Mobile smart phones (15,312)
5. Furniture e.g. sofas, coffee tables and chairs (11,250)
6. Women’s Handbags (9,594)
7. Appliances e.g. blenders, sandwich makers and electric steamers (9,496)
8. Women’s Shoes (9,417)
9. Men’s shoes (6,760)
10. Women’s fragrances (3,144)

Eight out of ten of us believe that Christmas is the perfect time to declutter, making space by getting rid of stuff they no longer need, with one in three admitting it’s a cathartic exercise that leaves them feeling more positive about the year ahead.

With more than 23million buyers on eBay every month and last year Brits bought more than one million items on the site between 27 – 30 December at a rate of 173 products per minute, or three every second.

Will Weightman, Senior Director, Consumer Selling, eBay UK says, “The period between Christmas and the New Year is an incredibly busy listings period on the site. Normally at this time of year people are looking for ways to make a bit of extra cash and fund the things they want to do in the new year.”