My pick of the 3 Best Buy-to-let deals on the market in Stamford & Rutland this week...

Property 1:
3 Bed End of Terraced House For Sale  £159,995
Charles Road, Stamford.  On the market with Rosedale's

 

I would suggest a small budget for updating and modernising this great 3 bed property.  It could be let out in its current condition but, to be able to attract the long term young families, I would suggest spending a moderate amount bringing the décor up to modern standards and tenants' expectations.  I would expect a rental return of £750pcm in good condition, with a yield of c5.6% based on its asking price.

Price: £159,995

Rent: Approx. £750pcm

Yield: c.5.6%

Click this link for more details on this property:

http://www.rightmove.co.uk/property-for-sale/property-62690021.html

Property 2:
2 Bed Terraced House For Sale  £180,000
Radcliffe Road, Stamford.  On the market with Knight Partnership.

This property is sought after, and could be let by the time you finish reading this!   At present, 2 bed terrace properties close to Stamford town centre are probably the most 'in demand rental investment'.  This particular property looks to be in very good condition and would be ready to go!  Rental income of £650pcm and based on asking price, the yield would be c4.3%.

Price: £180,000
Rent: Approx. £650pcm
Yield: c.4.3%
Click this link for more details on this property:

http://www.rightmove.co.uk/property-for-sale/property-56662138.html

Property 3
3 Bedroom Terraced House For Sale.  Guide Price £199,950
Hornbeam Lane, Uppingham.  Marketed by UPP Property Agents.

Uppingham is a good property market in to invest in, if you are looking for a sensible first time let.  We have lots of investors that own property in the town, as they look at the property as a long term home for themselves, as well as a good rental income in the meantime.

 

Expect a rental income of around £725pcm, which is a yield of 4.4%, making this an all round excellent purchase.

 

 

 

Guide Price: £199,950

Rent: Approx. £725pcm

Yield: c4.4%

Click on this link for more details on this property:

http://www.rightmove.co.uk/property-for-sale/property-44227128.html

If you would like to discuss any of these in more detail, or if you are considering investing in a different property, please do get in touch with me.  I am here to help and will be glad to discuss any property with you.

David Crooke, Owner

UPP PROPERTY AGENTS - Sales & Lettings

Understanding People and Property



Email: david@upp-property.co.uk
Stamford: 01780 484 554      Oakham: 01572 725 825

 

Rutland House Prices Rise By More Than 6% In The Last 18 Months

 

 

Over the last month, the Rutland property market has seen some interesting movement in house prices, as property values in the Rutland County Council area rose by 2.3%, to leave annual price growth at 9%.  

 

 

 

 

These compare well to the national figures where property prices across the UK saw a monthly uplift of 0.42%, meaning the annual property values across the country are 8.3% higher, this is all despite the constraining factors of Stamp Duty changes in the spring and more recently Brexit.

Surprisingly, when one looks at the figures for the last 18 months, house prices are 6.1% higher.  Again, thought provoking when compared to the national average figure of 13.6% higher.

However, it gets more remarkable when we look at how the different sectors of the Rutland property market are performing.  Over the last 18 months, in the Rutland County Council area, the best performing type of property was the detached, which outperformed the area average by 0.42% whilst the worst performing type was the apartment, which under-performed the area average by 1.4%.

Now the difference doesn’t sound that much, but remember two things, this is only over 18 months and the gap of 1.8% (the difference between the detached at +0.42% and apartments at -1.4%) converts into a few thousand pounds disparity, when you consider the average price paid for a detached property in Rutland itself over the last 12 months was £364,300 and the average price paid for a Rutland apartment was £153,000 over the same time frame.

I know all Rutlanders, be they homeowners or landlords, will want to know how each of the property types have performed, so this is what has happened to property prices over the last 18 months in the area...

 

·         Overall Average          +6.1%

·         Detached                     +6.6%

·         Semi Detached            +6.5%

·         Terraced                     +5.3%

·         Apartments                 +4.6%

 

So what does all this mean to homeowners and landlords and what does the future hold? 

When I looked at the month-by-month figures for the area, you can quite clearly see there is a slight tempering of the Rutland property market over these last few months.  I have mentioned in previous articles that the number of properties on the market in Rutland has increased this summer, something that hasn’t happened since 2008.

 

Greater choice for buyers means, using simple supply and demand economics, that top prices won’t be achieved on every Rutland property.  You see, some of that growth in Rutland property values throughout early 2016 may have come about because of a surge in house purchase activity, an indirect result of the increase in stamp duty on second homes from April, thus providing a temporary boost to prices.

However, it may be possible the recent pattern of robust employment growth, growing real earnings and low borrowing costs will tilt the demand/supply seesaw in favour of sellers and exert upward pressure on prices once again in the quarters ahead.

So what of property values?  Assuming that everything goes well with Brexit, I believe in 12 months’ time we should see values in the order of 4% to 8% higher.

I like to keep a close eye on the local property market on a daily basis because it enables me to give the best advice and opinion. If you want to learn more about the Rutland and Stamford property market, feel free to pop in for a coffee at our office for a chat with me.

For professional advice on buying, selling, renting and managing your homes and property investments.

David Crooke
Owner & Managing Director

 

UPP PROPERTY - SALES & LETTING AGENTS
Understanding People & Property

Email: david@upp-property.co.uk

Stamford: 01780 484 554      Oakham: 01572 725 825

 

This week's 3 Best Buy-To-Let Deals on the Rutland & Stamford Property Market

Property 1:
2 Bedroom Terraced House For Sale.  OIRO £170,000
Mount Pleasant, Uppingham Road, Oakham.  Marketed by Spencers Estate Agents

A wonderful cottage located within striking distance of Oakham town and offered in what appears to be excellent decorative order.  Properties similar to this one are always in demand, no matter how the local housing market is reacting.  With a monthly return of approximately £650pcm, this will bring in a yield of close to 4.6%. What stands this property out above many others is it's fantastic location, along with close access to the very popular Rutland Water.

Price: Offers In The Region Of  (OIRO) £170,000
Rent: Approx. £650pcm
Yield: c4.6%

Click this link for more details on the property:

http://www.rightmove.co.uk/property-for-sale/property-44591742.html 

Property 2:
2 Bedroom Terraced House For Sale.  £175,000
New Cross Road, Stamford.  Marketed by Newton Fallowell

Properties to let on New Cross Road in Stamford are so highly sought after you would be in an enviable position of being able to pick your preferred tenant out of what would be a handful of applications.  With an expected return of £650pcm and a yield of 4.5% this property would almost certainly give you capital growth along with longevity with your tenant.  An excellent investment if you are considering your first investment property.


Price: £175,000
Rent: £650pcm
Yield: c4.5%

Click this link for more details on the property:

http://www.rightmove.co.uk/property-for-sale/property-62374796.html

 

Property 3:

2 Bedroom Flat For Sale.  Guide Price £129,950

The Sidings, Oakham.  Marketed by UPP Property Agents

 

With a selection of 2 bedroom apartments available within this popular development, this property sets itself out above most because of its enviable position being located on the top floor.  Bringing in an expected return of £575pcm and with an opportunity to purchase this property at a respectable figure of £125,000 your yield return would come in at just over 5.5%.  We let and manage half a dozen properties within this development and would recommend these properties to anyone looking to expand their portfolio.

 

Guide Price: £129,950

Rent: Approx. £595pcm

Yield: c5.5%

Click this link for more details on the property:
http://www.rightmove.co.uk/property-for-sale/property-44992230.html 

If you would like to discuss any of these in more detail, or if you are considering another property, please do get in touch with me.  I am here to help and will be glad to discuss any property with you.

David Crooke, Owner and Managing Director

UPP PROPERTY AGENTS
Understanding People and Property

We are here to help you buy, sell, rent and manage your homes and property investments.

Email: david@upp-property.co.uk

Stamford: 01780 484 554      Oakham: 01572 725 825

4.8% of Stamfordians live in shared Households

I had an interesting conversation the other day with a Stamford landlord...

 

He had been chatting with an architect friend of his, who said back in the mid 2000’s the developments he was asked to draw were a balance of 1 and 2 bed properties, compared to today where the majority of the buildings he is now designing are typically more towards 2 - 3 bedroom properties. 

As I discussed with this landlord, knowing when and where the demand of tenants is going to come from is just as important as knowing the supply side of the buy-to-let equation – in relation to the number of properties built in Stamford, their property prices, yields and rents.

In 2001, there were 51,500 households with a population of 124,800 in the South Kesteven District Council (SKDC) area.  By 2011, that had grown to 57,300 households and a population of 133,800.

Therefore, between 2001 and 2011 whilst the number of households in the SKDC area grew by 11.36%, the population grew by 7.21%

Nothing surprising there then.  But my analysis of the 2011 Census results using the most recent in-depth data on household formation (eg. ‘one person households’, ‘couples/ family households’ or ‘couple + other adults households & multi -adult households’), has displayed a sudden and unexpected break with the trends of the whole of the 20^th Century.  There has been a significant change in household formation in Stamford between 2001 and 2011.

Between 2001 and 2011, Stamford’s population increased, and due to the number of new homes being built, so did the total number of Stamford properties.  However, the growth rate of new properties being built in Stamford was much lower than expected though, but still the population had grown by what was predicted.  Meaning, Stamford’s average household size was larger than anticipated.

In fact, average household size (i.e. the number of people in each property) in 2011 was almost exactly the same as in 2001, the first time for at least 100 years it had not fallen between censuses. (Since 1911, household size has decreased by around 20% every decade).

Looking specifically at Stamford’s figures, as this is what interests us locally:

·         One person households – 32.9%              

·         Couples/family households – 62.3%

·         Couple + other adults & multi-adult households – 4.8%

This decline was reflected in large scale shifts in the mix of household types.  In particular, there were far more “couple + other adults households and multi -adult households” than expected.  It can be put down to two things; increased international migration and changes to household formation.

 

A particularly important reason for the difference can probably be attributed to the evidence that migrants initially form fewer households (i.e. two couples share one property) than those who have lived in the UK all their lives.  Also, changes to household formation patterns amongst the rest of the population, including adult children residing longer with their parents and more young adults living in shared accommodation - as can be seen in the growth of ‘Homes of Multiple Occupation’ (HMO).

So, what does all this mean for Stamford homeowners and landlords?

Well, quite a lot in fact.  There has been a subtle shift to slightly larger households in the last decade, meaning smart landlords might be tempted to buy slightly larger properties to rent out…again good news for homeowners who will get top dollar for their home as they sell on.  But now with Brexit, household formation might swing the other way in the next decade? Who knows? Watch this space!


I like to keep a close eye on the local property market on a daily basis because it enables me to give the best advice and opinion.  If you want to learn more about the Rutland and Stamford property market, feel free to pop in for a coffee at our office for a chat with me.

 

For professional advice on buying, selling, renting and managing your homes and property investments.

David Crooke
Owner & Managing Director

 

UPP PROPERTY AGENTS
Understanding People & Property

Email: david@upp-property.co.uk

Stamford: 01780 484 554      Oakham: 01572 725 825

 

 

3 Buy-To-Let Deals on the Stamford & Rutland Property Market with 5+% Yields...

With so many great investment properties hitting the Rutland and Stamford property market over the last 7 days, it was a tricky task this week to select just 3.  As interest rates are looking to stay low in the foreseeable future the steady growth in house prices and princely buy-to-let yields have made property investment an appealing option for many.

Each of the 3 properties I have selected this week deliver yields of over 5%.

Property 1:
2 Bedroom Apartment For Sale:  Guide Price £139,995
West Street, Stamford.  Marketed by Sowden Wallis Estate Agents

 

I will start with this 2 bed apartment close to Stamford town centre. Not only is it in immaculate order, the rental return would come in easily at £595pcm which would bring a very healthy yield of 5.1%. This property would represent an excellent long term investment.

 

Guide Price: £139,950

Rent: Approx. £595pcm

Yield: c5.1%

Click this link for more details on the property: 

http://www.rightmove.co.uk/property-for-sale/property-44817132.html

 

 

Property 2:

3 Bedroom Terrace House For Sale:  £157,500

Trinity Road, Stamford.  Marketed by Goodwin Property Services

 

Another solid investment this week is this excellent 3 bed terrace property also located in the heart of Stamford. It is extremely rare to find a 3 bed terrace with 2 bathrooms!  The rental return on this property would bring in c£695pcm again, the yield would come in over 5%! In fact, 5.3% to be precise.  An excellent property for the first time investor looking for a wonderful start to their investment portfolio.

Price: £157,500
Rent: Approx. £595pcm
Yield: c5.3%

Click this link for more details on this property:

http://www.rightmove.co.uk/property-for-sale/property-56466172.html

 

 

 

Property 3:

2 Bedroom Flat For Sale: Guide Price £119,950

The Sidings, Oakham.  Marketed by UPP Property Agents

Lastly, we are marketing a 2 bedroom ground floor apartment close to Oakham train station and town centre at £119,950. 

 

We have it on good authority that the current owner would accept offers in the region of £115,000 and with a return of £550pcm the yield would come in at close to 5.8%.

 

The property would let out probably within the first few days of marketing.

 

 

Guide Price: £119,950

Rent: Approx. £550pcm

Yield: c5.8%

 

Click this link for more details on this property:

http://www.rightmove.co.uk/property-for-sale/property-44841378.html

If you would like to discuss any of these in more detail, or if you are considering another property, please do get in touch with me.  I am here to help and will be glad to discuss any property with you.

David Crooke, Owner and Managing Director

UPP PROPERTY AGENTS
Understanding People and Property

We are here to help you buy, sell, rent and manage your homes and property investments.

Email: david@upp-property.co.uk

Stamford: 01780 484 554      Oakham: 01572 725 825

   

716% rise in Stamford property prices since 1981

Looking back 35 years to 1981 and Maggie Thatcher was in power, we had a Royal Wedding, Britain won the Ashes and Bucks Fizz won The Eurovision Song Contest with "Making your Mind up’"   How things have changed!

I wish I had a pound for every homeowner and property investor who says to me ‘that with hindsight they wished they had bought up every house in Stamford all those years ago’.  Especially when you realise...



...Stamford property values since 1981 have risen by 716%

Now that's really not bad when you consider inflation over the same time period has been 271.9%, meaning in real terms (i.e. after inflation), property values in Stamford are 444.1% higher.   It’s no wonder people can’t afford to buy property anymore and landlords continue to remain attracted by bricks and mortar.  Yet the changes to the property market run much deeper than property value changes, as no one could have predicted how the property market could have changed over the last 30 years.

Referring to Local Authority data for South Kesteven District Council (SKDC) in 1981, 28.6% of Stamfordians lived in a council house, whilst today its 13.4% ... a massive drop which can mostly be attributed to Margaret Thatcher allowing council tenants the ‘right to buy’ their council house.  The private rental sector since 1981 has, as one would have expected, also changed. 

Nationally they’ve almost doubled, however, with the proportion of properties privately rented in the Stamford area (i.e. through a private landlord or a letting agency) there has been a slight increase, rising from 12.4% to 14.6% of property.

So, let us reflect on those people who own their own home, surely that has had a massive drop?  In 1981, the proportion of people who lived in the SKDC area who owned their own home was 58.9%, and today it’s 69.4%.  Not the seismic change most of you were expecting (including myself!).

Homeownership in the 1980’s and 1990’s in Stamford did in fact rise, but (as I have discussed in previous articles in my on-line blog) that was because nearly every council tenant was buying their council house.  Now there are hardly any council houses for the younger generation to move into (because of the ‘right to buy’ scheme) so they have no choice but to privately rent.

Therefore, this is why the buy-to-let market is an investment sector that will continue to grow as councils aren’t building council houses in their thousands each year (like they were in the 1950’s, 60’s and 70’s).  The property market is constantly changing and buy-to-let for too long has been heavily dependent on house price growth, where yield has been almost forgotten.  I see the changes in tax regulations and landlord and tenant law in a different perspective to the doom mongers and see it as bringing many opportunities where yield will become more important.

Like the famous Bucks Fizz lyrics, it’s time for “making your mind up”!  The advice I give to my landlords is this; these changes will make some landlords panic, meaning competition for decent buy-to-let bargains will reduce as fear of change kicks in and amateur investors flee the market.  These opportunities will provide a more stable platform for knowledgeable and wise buy-to-let landlords to thrive in.

I like to keep a close eye on the local property market on a daily basis because it enables me to give the best advice and opinion.  If you want to learn more about the Rutland and Stamford property market, feel free to pop in for a coffee at our office for a chat with me.

 

For professional advice on buying, selling, renting and managing your homes and property investments.

David Crooke
Owner & Managing Director

 

UPP PROPERTY AGENTS
Understanding People & Property

Email: david@upp-property.co.uk

Stamford: 01780 484 554      Oakham: 01572 725 825