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INTERVIEW WITH EIGHTFOLD PROPERTY

WE MEET THE PEOPLE BEHIND THE SCENES

CHANGING SPACES FOR A CHANGING WORLD

SBT CATCH UP WITH RICHARD ZINZAN, ARCHANGELS ARCHITECTS

MORTGAGE MEDICS: SEPTEMBER 2020

BY SAM MURPHY - MANAGING DIRECTOR MORTGAGE MEDICS

Interview with

Eightfold Property

1. Tell us about

Property Eightfold Property?

Eightfold Property is a new face in the Sussex property market, but not really. It’s a combination of the experienced residential lettings team of Brighton Accommodation Agency, with the addition of the incredibly knowledgeable and experienced Max Pollock as Director of Commercial Property. The problem we had early on was that when we looked at what our business was going to deliver, “Brighton Accommodation Agency” didn’t really describe what we did any more, so we decided to fully rebrand as well for this new chapter. We’ve also moved into new, larger premises and revamped our online offering as part of this new development. We’re now able to offer a full range of commercial property services and residential lettings and will be looking to further expand on our offering in the not too distant future.

2. What makes you different from other estate agents?

From the very beginning, our intention was not to be like other estate agents. Company Director, Dan Lyons, came into property from a musical background, so from the point he purchased Brighton Accommodation Agency he wanted to move away from the stiff formal nature of your traditional estate agents and grow a business that really felt different. With Eightfold Property, this was one of our key flagstones from inception. We wanted to be a more relaxed, friendly sort of agent, that focused on solving problems, rather than pushing unnecessary formalities. It’s our expertise that underpins our ability, not our shiny suits!

We have also been very keen to keep ahead of the times with our online offering, forging the way with informative social media and being sure that alongside our more traditional elements of phone and in person, that we are really at the cutting edge of digital and online property offerings.

3. What effect as Covid-19 had on the business?

Strangely enough, outside the obvious points that have been difficult for businesses - and ours has been no different there - lockdown came at an interesting time for us. We had just

taken possession of our new office at the end of February and managed to just have our new flooring laid before the country went into lockdown.

What this meant for us was that as things started to ease, we were able to adapt from homeworking to be able to get our desks, phones and PCs installed and set up in the new office and go back to a full team in the office quite quickly.

The pandemic overall has made us look closely at the way we do things and make adaptations, as with any business that has reopened and I think a lot of the changes will be here to stay. We have also noticed the real strength in our team to be so productive throughout all of this and we think flexible home working will be here to stay!

4. What effect has covid-19 had on the property market?

That is actually a more interesting question as time goes on. Initially, there was a lot of fear around rents being unpaid across the board and the bottom really falling out of the property market. Of course, a lot of people are struggling at the moment, but we have really seen that with co-operation between landlords and tenants, a lot of this can be eased and people are getting back on track as best they can.

In the commercial market, things have really started taking off. We have seen huge change across the country in the economy and that change has sparked activity in the market. It seems that with the difficulties in the overall economy, a lot of people are spotting gaps in the market, or wanting to become their own boss off the back of a redundancy and we’re seeing a lot of interest in people starting up new businesses.

On the residential side of things, demand has shot right up, particularly for properties with gardens. We’re seeing people think a lot more about where they live, as they’ve been spending a lot more time there and it really shows. Great properties are just flying out! There is however, a bit of pressure on the student market, around the uncertainty that still exists, but overall things are looking bright.

5. How is the property market at the moment in both residential and commercial?

Both markets are generally buoyant. We are seeing a shift in priorities, but we think there are some very interesting things on the horizon for this city in the commercial department. As far as residential properties go, we think quality is on the rise, which can only be a good thing for tenants.

There are certainly opportunities out there for investors, with interest so high, so we think it’s an exciting time for the property market. Going forward, a lot will depend on how the economy fares in general, between Covid-19 and Brexit, but we think it’s a good time for property.

And it’s not just in Brighton and Hove we’re seeing this, reports are suggesting that things are interesting across the country at the moment. We are seeing a push from some London companies away from their traditional large office model and towards home working and regional hubs, which may continue to push the property market.

6. Do you feel there will be an increase in shared office space due to more flexible working?

There seem to be two opposing schools of thought here. One the one hand, yes. There looks to be a move towards shared spaces for those that are flexibly working from home, but don’t necessarily want to spend all of that time at home (and avoid sitting in coffee shops). But the other side of this will depend on the fallout from Covid-19. With people worrying about the risk of exposure, it looks to be that the long term future of shared office space will depend on the ongoing rate of infection.

We think that the likely outcome is going to be a strange combination of these opposing views. It is likely that with more flexible working, these types of offices will really start to take off. However, a lot will need additional thought that they may not have before to ensure the risks to those using them are as low as possible. Usage may go up and down with the rate of infection in the area.

7. What does the future hold for Eightfold Property?

Next for us is further expansion. We are extremely happy with the way the launch/relaunch has gone, with our commercial property department really hitting the ground running and our residential lettings department has never been busier. Our next step is likely going to be adding a residential sales department to really round off our agency offering. With this, we feel the three areas of the business will work really well off each other with several areas of synergy between them.

Past that, who knows? The sky really is the limit. Our intention is to bring experts together to be able to assist in all areas of people’s property journeys. We may be looking to look to expand geographically, to take in more of our local area.

If you need an agent to deal with your commercial property or residential letting to call us on 01273 672 999.

www.eightfold.agency

Changing spaces for a changing world

The world has changed. Fast… And in ways that we could not have imagined.

This month SBT catch up with Richard Zinzan, archangels ARCHITECTS

This year has

Property given most of us the opportunity - welcome or not - to reflect on the way we live and work. The two worlds collided for many when the UK first went into lockdown in March. What seemed initially like a temporary measure, with many working from the kitchen table whilst juggling the demands of home schooling, now seems to be much more of a way of life. We have adapted, now it is time for our homes to catch up too.

2020 has brought buoyancy to the property market. The big pause has given people a chance to reflect on what is important, and for many that means making moves from bigger cities into more open spaces with access to the great outdoors and space to work. Of course, this isn’t something that’s available, or even appealing to all of us. Sussex, and in particular, Brighton and Hove has always had more than its fair share of homeworkers and freelancers, it is no surprise that in 2020 we have been asked more than ever to help people adapt to their homes to the changing world. In June of this year, it was reported by the Guardian that 49% of workers nationally had worked from home. In 2019 it was just over 5%, the increase is staggering. This year has brought its own challenges for us too. There were many weeks when building work stopped completely. Fortunately, it started again in early May but there are ways that we have had to adapt the way we work with our clients. It would have been unheard of before for me to carry out consultations solely using Zoom, Google Maps and estate agents’ floorplans. Although I do miss getting out and about and human connection as much as anyone else, this is surprisingly effective but also more acceptable.

Our job as architects is to find solutions a client might not have been

able to envisage. For example, we had a client who contacted us for a substantial extension to her existing house. She needed space to work from home as well as somewhere for guests and in particular, a disabled friend to come and stay. Although an extension could have been one solution, reconfiguring the existing space was just as effective.

We recommended flexible spaces that could be multi-functional. Clever furnishing and joinery can make rooms easily adaptable to working from home and the ever-increasing move we are seeing to intergenerational living. Another recent Guardian report stated that 46% of 20-34 year olds still live with parents. I can only imagine this increasing with the economic impact of COVID-19.

archangels ARCHITECTS was founded in 2009 and I have been the sole Director for 3 years now. We are passionately committed to providing cost effective, creative, low energy buildings. We work closely with clients to enhance their space and craft beautiful buildings that are in harmony with the environment. Our aim has always been to understand the client’s dreams and to meet their individual requirements throughout the natural building process, so together we can produce people’s own grand design. Adapting your home to your evolving world doesn’t have to be costly or invasive. Here are three things that you can do to better integrate your work and family life into the space you have:

• Additional space isn’t always needed – taking away space and repurposing can also enhance your home – as well as a good tidy up and clear out! • Adding in a shower room to the ground floor makes a reception room easy to turn into a bedroom, making your house more accessible and flexible particularly for those older guests (the outlaws!) • Never neglect the outside space if you have one or look at creating one if at all possible. Wellbeing is important for our mental health and having access to some outside space when working from home can be vital.

In my own home I have done away with naming rooms and I think that this is something we all consider. I have a room that easily flows between office, spare room and home gym with clever joinery and a little bit of technology – it feels very James Bond to have a bed that appears

and disappears at the touch of a button!

One thing is sure; the links between having a safe and versatile living space and our mental health, family life and productivity are clearer than ever. While it’s impossible to know what the future holds, I feel that the greatest lesson I have learned in 2020 so far is that if we think in terms of our priorities - the things that really matter to us, and work from there, we can’t go too far wrong.

Our projects range from bespoke newbuild homes, to extensions of existing homes, to modest internal alterations. Our mission is to deliver cost-effective, creative, low-energy buildings that improve everyday living.

Ready to talk about an idea? Get in touch. Together, we will create your dream home.

www.aaarchitects.co.uk

info@aaarchitects.co.uk

01273 267 184

SUPPORTING SUSSEX NIGHTSOP’S FIGHT AGAINST HOMELESSNESS

Mortgage Medics:

September 2020

As we slide in to Q4 of what must be the strangest year most of us have lived through, unexpectedly I find myself writing about an exceptionally busy, albeit challenging, property and mortgage market.

By Sam Murphy - Managing Director Mortgage Medics

Like many

Property businesses, during lockdown we saw both enquiry levels and our ability to transact new business reduce dramatically, but since Chancellor Rishi Sunak announced a stamp duty holiday on 8th July we’ve seen enquiry levels soar. Even before this, as lockdown restrictions eased, we started to receive calls and emails from renters and existing homeowners alike keen to change their living arrangements. Being cooped up during lockdown without outside space was probably the most obvious negative for those affected, but living with or indeed without certain other people has also been a driver for change.

As a result, over the last few months we’ve been helping more people than ever explore their options to get on the ladder or move home, and whilst the mortgage market is still very active, there are some extra considerations to keep in mind. Read on and I’ll summarise the main themes of the current market – and what’s causing them.

Stamp Duty Holiday

As mentioned above, Rishi Sunak announced a stamp duty holiday on 8th July, which is set to run until 31st March 2021. Under the terms of the scheme, the standard rate of stamp duty is waived on the first £500,000 of transactions. For first time buyers and most home movers this means no stamp duty at all, with the chancellor claiming during the announcement: “Nearly 9 out of 10 buying a main home this year will pay no stamp duty at all.”

The maximum saving is £15,000, applicable to properties changing hands for £500,000 and over, and the saving is available to all types of buyers. Investors buying to let and existing homeowners looking for a second home or holiday home can also

Sam Murphy

save up to £15,000, but they’ll still pay the additional rate of stamp duty of 3% of the purchase price.

Downsides? Well there were fears that the potential savings might entice sellers and estate agents to increase asking prices. It’s true that prices have recovered and stayed strong in recent months, however this is to be expected in a busy market, and so whilst the potential stamp duty saving may be pushing prices up, it’s increasing buyer mobility, especially for those with smaller deposits. Speaking of which…

Scarcity of low-deposit mortgages

The greatest challenge we’ve faced in the last few months is the disappearance of mortgage products available to buyer with deposits of less than 15% - a problem which affects first time buyers disproportionately. Prior to lockdown it was possible to borrow 95% LTV (loan-to-value) with a healthy number of lenders, on competitive terms.

As lockdown struck many lenders restricted lending to 75% LTV overnight, primarily because it was impossible to send surveyors out to properties for valuations. As restrictions eased and lenders made greater utilisation of non-physical valuation methods, we’ve gradually seen LTVs improve across the board, with the majority of lenders now offering 85% mortgages again. We now seem to have levelled at a situation where regular 90% mortgages are only released in very small quantities by the few lenders willing to support this part of the market, and on each release the rates on offer are creeping up, making it less affordable for buyers.

Despite this, it may surprise you to read that it’s actually still possible to borrow 100% in certain circumstances. If a parent or other suitable supporter is willing to put up their own savings or property as security for a period of time, then it may be possible to buy without any deposit at all. The Government Help to Buy scheme is also still very much active on eligible new build properties, with the minimum deposit still just 5% of the open market value.

The cause of this scarcity is two-fold. Firstly, lenders are nervous that the medium-long term implications of the coronavirus crisis could see house prices drop. If this happens and they’ve been lending carefree at high LTVs then many homeowners could end up in negative equity, with negative implications for both borrowers and lenders.

Secondly, lenders are having to undertake increased levels of scrutiny with a reduced workforce due to social distancing requirements. This means it takes longer to process applications and lenders only really have two short-term solutions to reduce the number of applications they receive and protect service standard; put their prices up or withdraw from certain parts of the market. In many cases lenders are doing both, despite the underlying cost mortgage funds to lenders being cheaper than ever.

Challenges, delays and extra scrutiny for the self-employed

Understandably, many self-employed and business owners will have taken a real hit over the past 6 months. For many the future remains uncertain, whilst for others they’ve returned to some degree of normality and can feel confident about the future. The challenge for lenders is that they have an obligation to assess affordability and lend responsibly, and with company accounts and tax returns only being completed annually, it’s difficult to get an accurate picture.

As such most lenders are now asking for financial information covering the last few months and if this doesn’t support a level of income somewhere near pre-Covid levels, lending can be hard to come by. This in turn is causing significant delays with some lenders taking weeks to arrive at a lending decision.

If you’re thinking of moving or remortgaging

Whilst there are challenges as outlined above there are also opportunities with a lot of housing stock coming to the market and sellers in all sorts of different situations, meaning bargains and projects should be amongst the new listings on Rightmove.

We’ve never had to work harder for our clients and be more on the ball, so it’s more crucial than ever to take independent advice from a whole of market broker. If you’d like that to be us, we’d love to hear from you; just pay us a visit at www.mortgage-medics.com.