Thursday 27 April 2017

This week's 3 Best Buy-To-Let Deals in Rutland & Stamford, Incomes of £8k-£9k pa


Property 1
3 Bedroom Semi-Detached House For Sale.  Guide Price £220,000
Plover Close, Oakham.  On the market with UPP Property Agents
 

I’m always asked where the best investment properties are located in Oakham, and right now, this established and sought after development located off the bypass holds the most appeal.
 
This 3 bedroom semi is a prime example of what to expect from a wonderful modern property that would attract longevity with tenants and young families.

 
Guide Price: £220,000
Income: £9,000pa (Rent: Approx. £750pcm)
Yield: c4.1%
 
Click this link for more details on this property:

 
Property 2
3 Bedroom Semi-Detached House For Sale.  Price £199,950
Lindsay Road, Stamford.  On the market with Moores Estate Agents
 
The Stamford property market continues to strengthen with prices on the rise on month on month. This particular property would make for an excellent rental investment and you can be almost certain of achieving more growth over the coming months/years.
 
 
Price: £199,950
Income: £9,000pa (Rent: Approx. £750pcm)
Yield: c4.5%
 
Click this link for more details on this property:
 
 
Property 3
3 Bedroom End Of Terrace Converted Stables.  Guide Price £179,950
Kimball Close, Ashwell, Oakham.  On the market with UPP Property Agents
 
The village of Ashwell, near Oakham has benefitted hugely over the closure of the local prison.  House prices in this area of Rutland have increased with natural market conditions and also with the benefit of the closure.

This property has been let out by the current vendors for many years and have been achieving £650pcm.


 
Guide Price: £179,950
Income: £8,100 (Rent: Approx. £675pcm)
Yield: c4.6% (based on a purchase price of £175,000)
 
Click this link for more details on this property:
 
 
If you would like to discuss any of the above properties in more detail with me, or if you are considering investing in a different property, just email me the details and we can discuss further.  

David Crooke, Independent owner and managing director


david@upp-property.co.uk / 01780 484 554


Twitter: @UPPproperty


Understanding People & Property

Sales & Lettings







Tuesday 25 April 2017

355,880 people use Stamford Train Station a year...


How does Stamford Train Station affect
the Stamford Property Market?
 
It might surprise you that it isn’t always the most picturesque villages or the smartest streets where properties sell and let the quickest. Quite often it’s the ones that have the best transport links.

There is a reason why one of the most popular property programmes on television is called ‘Location, Location, Location’!
 


As an agent in Stamford, I am regularly consulted by buyers and property owners and I am often asked where the best parts of Stamford are and which of the surrounding villages are best to live in - chiefly from newcomers to the area.  

Now the answer is different for each person; a lot depends on the demographics of their family, their age, schooling requirements and interests etc., Nonetheless, one of the principal necessities for most tenants and buyers is ease of access to transport links, including public transport, of which, the railways are very important.

 Official figures recently released state that, in total, 489 people jump on a train daily from Stamford train station.  Of those, 154 are season ticket holders.  That’s a lot of money when a standard class season ticket to London is £4,276pa.

 So, if up to £658,550 is being spent on rail season tickets each year from Stamford, those commuters must have some impressive jobs and incomes to allow them to afford that season ticket in the first place.  Demand for middle to upper market properties remains strong in Stamford and the surrounding area and so, in turn, these are the type of people whom are happy to invest in the buy-to-let market – providing homes for many residents.
 
Property values in Stamford would be at least 3% - 4% lower
if it wasn’t for the proximity of the railway station.
 
As the costs associated with car travel continue to rise and the already congested roads worsen, rail travel is becoming increasingly important, and this has resulted in a huge surge in rail travel demand.   

Overall, usage of Stamford train station has increased over the last 20 years.  In 1997, a total of 186,863 people went through the barriers or connected with another train at the station in that 12-month period. However, in 2016, that figure had risen to 355,880 people using the station (that’s 978 people a day).


The juxtaposition of the property and the train station has an important effect on the value and saleability of a Stamford property.  It is also significant for tenants, so for a Stamford buy-to-let investor looking for a property, the distance to and from the railway station can be extremely significant.
 
One of the first things house buyers and tenants do when surfing the web for somewhere to live is find out the proximity of a property to the train station.  That is why Rightmove displays the distance to the railway station alongside every property on their website. 
 
 
If you own a property close to Stamford Train Station (in particular properties situated on Gresley Drive, Wothorpe Road, Station Road, Church St/Lane, Wharf Road etc.), please contact me.  We have buy-to-let investors and families very interested in this central location - not to mention tenants searching for their next home!
 

David Crooke  -  01780 484 554
david@upp-property.co.uk

Owner and managing director

Understanding People & Property

SALES & LETTING AGENTS 



Stamford: 01780 484 554  

Rutland:   01572 725 825
  
 

 

Wednesday 19 April 2017

Stamford’s housing affordability hits a ratio of 8:1


Further to a recent article posted on my Stamford property blog, a Stamford homeowner emailed me regarding the change in attitude to renting by the youngsters of Stamford and how they thought it was too expensive for first time buyers to buy in the area, there can be no doubt that buy-to-let landlords have played their part in driving up property and from that made housing a lot less affordable for the 20-30 somethings.
 

The concerned homeowner asked if the Bank of England (BoE) should be tasked to control house price inflation in the same way they control inflation.  The BoE has a target for the annual inflation rate of the Consumer Prices Index of 2%, whilst it is also required to support the government’s economic policy, including its’ objectives for growth and employment.  Perhaps the BoE should be charged with containing the buy-to-let housing market by possibly changing the rules on the loan-to-value (LTV) ratios?

So, how affordable is Stamford? 

The best measure of the affordability of housing is the ratio of Stamford property prices to Stamford average wages, (the higher the ratio, the less affordable properties are). 

Referring to the table below, for example in 2014, the average value of a Stamford property was 7.48 times higher than the average annual wage in Stamford.


1998 

2000

2002

2004

2006

2008

2010

2012

2014
2016 (EST)
3.86
4.38
5.33
7.66
7.67
7.24
6.97
7.26
7.48
8.38

This deterioration in affordability of property in Stamford over the last couple of years has been one of the reasons why the younger generation is deciding more and more to rent instead of buy their own house. 
However, it’s not the only reason.

A quick look on ‘Money Supermarket’ today found 169 lenders prepared to offer 75% LTV Buy-to-let mortgages and none at 85% LTV.  Lenders have self-imposed a high level of entry for buy-to-let landlords (i.e. putting down at least 25% of the purchase price in cash).  The BoE don’t need to meddle there!

Also, the Tories have certainly done lots to level the playing field in favour of first time buyers.  For nearly a year now, landlords have had to pay an additional 3% in stamp duty on any buy-to-let purchase and over the coming 4 years, tax rules on landlords claiming mortgage interest relief will affect their pocket.  Likewise, it doesn’t help that local authorities sold off council houses in the Thatcher years and so for many on low incomes or with little capital, owning a home has simply never been an option (today or historically).  
It’s easy to look at the headlines and blame landlords.  First time buyers have been able to access 95% LTV mortgages since 2010, meaning even today, a first-time buyer could purchase a 3 bed semi in Stamford for around £180,000 and only need to find £9,000 deposit.  Agreed, it’s a lot of money, but first time buyers need to decide on their priorities.


Renting is returning to be the norm.  Landlords have it tough, but let’s not blame them for the ‘perceived’ woes of the nation, and remember that we haven’t always been a country of homeowners.  Nationally, in 1964, 30% of people rented their home from a private landlord, and today it’s only 15.3%.

If you are an existing landlord or someone thinking of becoming a first-time landlord , and looking for advice and opinion and what (or what not to buy in Stamford), please contact me.  I don't bite and am here to help.


David Crooke  -  01780 484 554
david@upp-property.co.uk

Owner and managing director

Understanding People & Property


SALES & LETTING AGENTS 



Stamford: 01780 484 554  

Rutland:   01572 725 825
  

Tuesday 18 April 2017

3 Best Buy-To-Let Deals on this week's property market, with incomes of £6k-£8k pa


Property 1
2 bed end of terrace house for sale  - Price: £189,995
Gas Lane, Stamford.  On the market with Purple Bricks
 

A superb rental investment is offered to the market by Purple Bricks , presented in excellent order and located in what might get a few heads scratching! Gas Lane is located off St Leonards Street, which is literally at the top of Stamford's popular High Street. I would expect an income £8,100 per annum (£675pcm) which would bring the yield in at 4.3%.

Price: £189,955
Annual Income: £8,100 / Rent: £675pcm / Yield: 4.3%

Click this link for more details on this property:


Property 2
2 bed terrace house for sale - Guide Price £169,950
Martingale Mews, Oakham.  On the market with UPP Property Agents

This property is wonderful little gem. It is a Larkfleet build and is only 2 years old, so you would benefit from the 8 years of building/construction piece of mind.
 
We have successfully sold and subsequently let an identical property on the next close (Bridle Close) at £625pcm which is an annual income of £7,500 and a yield of 4.5% (based on £165,000 purchase price).



Guide Price: £169,950
Annual Income: £7,500 / Rent £625pcm / Yield 4.5%

Click this link to see more details on this property:


Property 3
1 bed apartment for sale - Guide Price £119,950
Stud Road, Barleythorpe Nr Oakham.  On the market with UPP Property Agents


Another Larkfleet build and another opportunity to acquire 8 years' NHBC guarantee. Again, we manage a few properties within this block and I can honestly say they have been excellent maintenance free lets. This particular property backs onto to open allotments and would be a wonderful let to a young professional.  With an annual return of £6,600 (£550pcm), the net yield would be in the region of 5.5%
 
  
Guide Price: £119,950
Annual Income: £6,600 / Rent: £550pcm / Yield 5.5%
 
Click this link for more details on this property:
http://www.rightmove.co.uk/property-for-sale/property-47882373.html


If you would like to discuss any of the above in more detail with me, or if you are considering investing in a different property, just email me the details and we can discuss further.

David Crooke, Owner
david@upp-property.co.uk / 01780 484 554


Twitter: @UPPproperty


Understanding People & Property

Sales & Lettings





 

Tuesday 11 April 2017

Stamford Rents Rise By 14.5% Since 2005


The local property market has been particularly fascinating over the last 12 years when we consider what has happened to rents and house prices.

There’s currently much talk of what will happen to the rental property market following Brexit. 
To judge that, I believe we must look what happened in the 2008/9 credit crunch (and what has happened since) to judge rationale and methodically, the possible ramifications for long-term investors in the property market.


An important yet overlooked measure is the performance of ‘rental income verses house prices’ (i.e. the resultant yields over time). 

Notwithstanding a slight drop in 2008 and 2009, the income from property rentals has been progressively increasing over the last 12 years.  Today, they are 14.5% higher than they were at the beginning of 2005.  In fact, over the last 5 years, the average growth has been 1.6%pa.  From a landlord’s point of view, increase in average rental income is not to be sneered at.  However, the observant readers will be noting that we are ignoring an important factor – inflation.

Looking back to 2005, and we have a property being rented for approximately £900pcm, and that is still being rented at £900pcm today.  While the landlord is not getting any less income, this £900 is no longer worth as much.  Let me explain, in 2005, £900 may have bought a two-week 4* holiday in Italy.  Yet, holidays have increased in line with inflation (which has been 38.5% since 2005), so our holiday would cost today £1,246 (£900 + 38.5% inflation = £1,246). Therefore, the landlord could no longer afford the same holiday, even though having the same amount in pound notes from their rental property.

This means when we compare rents in Stamford to inflation since 2005, Stamford landlords are worse off today when they receive their monthly rental income, than they were in 2005 by 24% in real terms (rents increased by 14.5% since 2005, less the 38.5% inflation since 2005 – net affect 24% drop).

However, rental income is not the only way to generate money from property, as property values can increase.  Although in the short term, cash flows are diminishing, many landlords may be content to accept that for a colossal increase in capital value.

Stamford Property Values have risen by 27.8% since 2005



This equates to a reasonably salubrious 2.31%pa increase over the last 12 years.  Even more interesting, is that this includes the 2008/9 property crash, this will make those Stamford landlords and investors feel a little better about the information regarding rents after inflation.

Moving forward, the prospects of making easy money on buy-to-let have diminished, when compared to 2005.  Last decade, making money from buy-to-let was as easy as falling off a log – but not anymore. 

It would be true to say, my ‘rental income verses property prices’ study does lead to noteworthy thoughts.  I am often asked to look at my landlords’ rental portfolios, to ascertain the spread of their investment across their multiple properties.  It’s all about judging whether what you have will meet your needs of the investment in the future.  It’s the balance of capital growth and yield, whilst diversifying this risk.

If you are investing in the Stamford and Rutland property market, do your homework and do it well.  While some yields may look attractive, there are properties in many areas that do not have the solid rudiments in place to sustain them.  If you are looking for capital growth, you might be surprised where the hidden gems really are.  Take advice, even ask your agent for a portfolio analysis, just like I offer my landlords.  The majority of agents in Stamford and Rutland will be able to give a detailed analysis of past and anticipated investment opportunity (especially the awful effect of inflation) on your portfolio.  However, if they can’t help – well, you know where I am, and the kettle is always on!

 
David Crooke  -  01780 484 554
david@upp-property.co.uk

Owner and managing director

Understanding People & Property

SALES & LETTING AGENTS 



Stamford: 01780 484 554  

Rutland:   01572 725 825