Wednesday 31 May 2017

57.1 miles – The average distance people move away from Rutland


“Do Rutlanders ever move far away from the area”?

This was an intriguing question asked by one of my clients recently.  Readers of my property blog will know I love a challenge, especially when it comes to talking about the local property market!  




For the majority, the response is not very far.  It is far more common for homeowners and tenants in Great Britain to move across town than to the next town or county.  Until now, it’s been hard to say how many homeowners and tenants moved from (and to) relatively far away to buy or rent their new home.  However, I carried out some research and requested some statistics from the Royal Mail. 

Using statistics for the 12 months up to the middle of autumn 2016, 365 households moved out of Rutland (LE15), moving an average distance of 57.11 miles - the equivalent of moving from Oakham to Luton as the crow flies.  The greatest distance travelled was 302 miles, when someone moved to Blairgowrie in Scotland. 

Considering there were 365 property sales in LE15 in the year and countless tenant moves, the numbers seem consistent; once you find a town you like, you tend to want to settle down and if you do move, you might only move to a different neighbourhood, or for better transport links or perhaps to be within the catchment area of a particular school, but the likelihood is you won’t travel far. 

I then turned my attention to people moving into Rutland.  Using the same statistics for the 12 months up to the middle of autumn 2016, 509 households moved into LE15, moving an average distance of 56.75 miles - the equivalent of moving from Newmarket to Oakham (again as the crow flies). The greatest distance travelled was 443 miles, when someone moved from the Isles of Lewis and Harris to Oakham. 

I have looked at the data of every person moving into Rutland and these have been plotted on a map of the UK.  Referring to the map, it shows exactly where most people have relocated to Rutland from.  As you can see, there are a high proportion of people moving from London and the South. 


 
So, what does all this mean for Rutland’s landlords and homeowners?

When an agent markets a property for sale or to let it is vital to know the prospective tenant or property buyer well, and that the properties they are selling or letting fit those buyers and tenants.  

There’s a lot more involved than simply knowing the features of the property, the mover’s budget and being able to share insight on the area, but agents need to be constantly reading (and reacting to) trends in the local property market, and understanding where their homebuyers and tenants are relocating from to appreciate and match their client’s needs.  I say it might be helpful to factor in where (and how) far people are moving from, so the property can be sold or let more easily.   

Many say ‘knowledge is power’ and whilst I do enjoy writing my blog on our local property market, I also use the information to help my clients buy, let and sell effectively.  The information gained for this article will enable my team and I to be more efficient in where to direct our marketing resources, therefore ensuring we maximise our clients’ property’s ‘sale-ability’ or ‘rent-ability’.
 
For example, residents in the South East of the UK favour Zoopla as their preferred property search engine, whilst Rightmove is the most used site in the East Midlands.  That’s why we promote our clients’ properties on the three most used property search websites Zoopla, Rightmove and Prime Location. 

UPP Property Agents – Understanding People and Property.

 

Sunday 28 May 2017

This week's 3 Best Buy-To-Let Deals with incomes of around £7k (4.7%-5.7% Yields)


Property 1
2 Bedroom Apartment For Sale.  Offers In Excess Of £125,000
Edward Road, Stamford.  On the market with Murray Estate Agents
 
We have included a similar property to this one recently. However, this one deserves a closer inspection as it’s in much better condition. Currently reduced in asking price to £125,000 this property offers a truly wonderful yield return of 5.7% - based on paying asking price. This property should be considered by any new investor.

Annual Income: c£7,140
Rent: Approx. £595-625pm
Yield: c5.7%
Click this link for more details on this property:
 
 
 
Property 2
2 Bedroom Terrace For Sale.  Price £159,950
Kimball Close, Ashwell.  On the market with Newton Fallowell
 
Having had the benefit of seeing the quality of this property, I can honestly give it the seal of approval for anyone looking to take on an investment property. It is offered in outstanding internal condition and is set within the highly desirable Cottesmore Hunt converted stables.

Annual Income: c£7,500 (based on asking price)
Rent: Approx. £625pcm
Yield: c4.7%

Click this link for more details on this property:


Property 3
2 Bedroom Terraced House For Sale.  Guide Price: £155,000
West Road, Oakham.  On the market with UPP Property Agents

This 2 bedroom period property is an absolutely brilliant rental investment.  Located within a short walk of both the station and the town centre, it is offered in good order and has scope to add more value to the property.  I would recommend a purchase price of around £150,000 to be able to maximise your return. Currently achieving £7,140 per annum (£595pcm) the yield would come in at 4.7%.
 
Annual Income: c£7,140
Rent: Approx. £595pcm
Yield: c4.7%

Click this link to see more details on this property:
http://www.upp-property.co.uk/properties/10532447/sales

I will post more buy-to-let deals again next week, but in the meantime, please feel free to call me to discuss any of the above, or simply send me the rightmove link to any other properties that you are interested in, and I will chat them through with you...

Best wishes

David Crooke



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


Twitter: @UPPproperty


Understanding People & Property

Sales & Lettings



Tuesday 23 May 2017

What will the General Election do to 5,881 Stamford Homeowners?

In Stamford, of the 8,994 households, 2,992 homes are owned without a mortgage and 2,889 homes are owned by a mortgage.  Many homeowners have asked me what the general election will do to the Stamford property market. I have looked over the last five general elections and analysed in detail what happened to the property market on the lead up to and after each general election.
 
Of the last five general elections, the two elections that weren’t certain were the last two (2010 with the coalition and 2015 with unexpected Tory majority).  Therefore, I wanted to compare what happened in 1997, 2001 and 2005 when Tony Blair was guaranteed to be elected/re-elected, versus the uncertain votes of 2010 and 2015 - in terms of number of houses sold and prices achieved. 

Look at the first graph below comparing the number of properties sold and the dates of the general elections:
 



 It is clear, looking at the number of monthly transactions (the blue line), there is a certain rhythm or seasonality to the housing market.  That rhythm/seasonality has never changed since 1995 (seasonality meaning the periodic fluctuations that occur regularly based on a season - i.e. you can see how the number of properties sold dips around Christmas, rises in spring and summer and drops again at the end of the year).

 To remove that seasonality, I have introduced the red line.  The red line is a 12 month ‘moving average’ trend line which enables us to look at the ‘de-seasonalised’ housing transaction numbers, whilst the yellow arrows denote the times of the general elections.  It is clear to see that after the 1997, 2001 and 2005 elections, there was significant uplift in number of households sold, whilst in 2010 and 2015, there was slight drop in house transactions (i.e. number of properties sold).
 
Next, I assessed whether property prices were affected. In the graph below, I have used that same 12-month average, housing transactions numbers (in red) and yellow arrows for the dates of the general elections, but this time compared that to what happened to property values (pink line).

 



It is quite clear none of the general elections had any effect on the property values.  Also, the timescales between the calling of the election and the date itself also means that any property buyer’s indecisiveness and indecision before the election will have less of an impact on the market.
 
So finally, what does this mean for Stamford’s 1,497 private landlords?
 
Well, as I have discussed in previous articles (and just as relevant for homeowners as well) property value growth in Stamford will be more subdued in the coming few years for reasons other than the general election.  The growth of rents has taken a slight hit in the last few months as there has been a slight over supply of rental property in Stamford, making it imperative that Stamford landlords are realistic with their market rents.  But, in the long term, as the younger generation still choose to rent rather than buy, the prospects, even with the changes in taxation, mean investing in buy-to-let still looks a good bet.
 
If you are interested in finding out your property's value, be that for sales or rental purposes, please get in touch with me. 
 
David@upp-property.co.uk   Tel: 01780 484 554
 

Thursday 18 May 2017

3 Best Buy-To-Let Properties in Stamford & Rutland with incomes of £7k-£8,500k plus

Property 1
2 Bed End of Terrace House for sale. Offers Over £160,000
Lonsdale Way, Oakham.  On the market with Moores Estate Agency

The 2 bedroom BTL market in Oakham is at its strongest currently, and there is no better investment on the market than these 1960's houses located on Lonsdale Way. They will always appeal to young families looking to be within walking distance to the local primary school.
 
Annual Income: c£7,500
Rent: Approx. £625pcm
Yield: c4.7%
Click this link for more details on this property:



Property 2
2 Bed End of Terrace House for sale.  Offers in Excess of £150,000
Kings Road, Oakham.  On the market with Excel Estate Agency
 
Kings Road in Oakham is a location that will attract current investors looking to expand their portfolio. With a continued rise in demand for the "period" home in Oakham, Kings Road is located within a 5 minute walk to the station and would offer good capital growth.
 
Annual Income: c£7,140
Rent: Approx. £595pcm
Yield: c4.7%
 
Click this link for more details on this property:
http://www.rightmove.co.uk/property-for-sale/property-66426776.html
 
 
Property 3
3 Bed Semi-Detached House for sale.  Guide Price £189,950
Redcot Gardens, Stamford.  On the market with UPP Property Agents

We are delighted to be able to offer this Stamford gem to the investment market.

We have successfully let this property out for several years and with a tenant in situ willing to sign up long term, you would be the beneficiary of gaining an income right from the off.
 
To be purchased by an investor only.


Annual Income: c£8,700
Rent: Approx. £675pcm currently, rising to £725pcm
Yield: c4.7%, based on purchase price of £185k
 
Click this link for more details on this property:

As always, if any of the above properties have caught your eye, or if you are considering investing in a different property, please contact me and we can discuss it further.  

Best wishes

David Crooke, owner and managing director


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


Twitter: @UPPproperty


Understanding People & Property

Sales & Lettings





 

Wednesday 17 May 2017

Stamford Flats Outperform Property Market Average by 78%


According to the Land Registry's latest House Price Index for Stamford and the surrounding locality, the value of apartments/flats are rising at a faster rate than terraced/town houses, semi-detached properties and even detached properties. 

Values of apartments in Stamford have increased by 4.8% over the past year, which is proportionally 78% more than the Stamford average rise of 2.69%.  

The last time flats/apartments in Stamford outperformed all the other types of property, by such a gulf, was back in the spring of 2003.  
 
For comparison, the other property types performed as follows:  

·         Detached homes rose by 2.6%

·         Semi-Detached homes rose by 2.57%

·         Terraced/Town Houses rose by 2.39% 

This moderately increasing rate of property value growth is opportune – but no one should confuse it with a strong and vigorously healthy Stamford property market.  Instead, it is somewhat of an indicator of the long-lasting lack of property on the market.  
 
In fact, I have spoken about the lack of homes for sale in Stamford on a number of occasions in my Stamford Property Blog and whilst it isn’t as bad as it was 12 months ago, choice remains limited for buyers. 

The average property value in Stamford

now stands at £308,500

 
When split down into property types:
 
·         Stamford Apartments at £166,500

·         Stamford Detached at £428,300

·         Stamford Semi-Detached at £237,500

·         Stamford Terraced/Town House at £251,800



 So, why have Stamford apartments performed so well, and is it just a Stamford thing?
 
When I scrutinised the figures for the rest of the UK, it appears that apartments are pacemakers in the clear majority of the country.  

Of the 379 local authority areas in the UK, the value of apartments is rising faster than detached, semi-detached and terraced houses in 320 of them. 

So, should Stamford apartment owners be getting out the Champagne?  Well, I would keep it on ice for now, as the Land Registry figures are notorious for short term fluctuations.  

It’s hard to have faith in the fact that Stamford house values rose rapidly last month given that, in the last 6 months, the Land Registry has frequently made downward revisions to their first published House Price Index figures.  Thankfully, the bigger picture from the Council of Mortgage Lenders (CML) stated that home buying activity last month was up 2%, over the same month in 2016.  The CML stated first time buyer’s levels of affordability was being squeezed and that the average amount borrowed by those first-time buyers dropped slightly last month, but the overall amount borrowed (by all buyers) was an impressive 12% higher than the same month in 2016. 

So, what next for the Stamford Property market?
 
I believe the uplift in the values of apartments is a short-term blip. The real issue is with the way wage growth might not keep up with inflation as the effects of 2016 exchange rate sucks in inflation (meaning real wage growth stagnates). This will mean buyer demand growth will be curtailed and with property values already so full, I believe a renewed hastening in house price growth is unlikely. 

Personally, I foresee a return to the housing market we saw in the mid 1990’s, Steady demand, steady supply – nothing silly when it comes to house price growth. Therefore, I believe, with what is happening around us – this isn’t a bad thing at all.  

If you have a Stamford apartment and would it valued for either sales or rental purposes, please contact me: 






 
David Crooke
Owner & Managing Director

01572 725 825





Wednesday 10 May 2017

Here is our latest issue of The Rutland & Stamford Property News

OUT NOW... this month's edition of The Rutland & Stamford Property News




This week's 3 Best Buy-To-Let Deals with incomes of £7k-£8k pa


Property 1
2 Bed Flat For Sale.  Offers in the region of £132,000
Edward Road, Stamford.  On the market with City & County
 
A wonderfully spacious and well presented 2 bedroom flat close to Stamford town centre. This property is offered in excellent order, and ideal for any first time investor looking for a solid and sound investment property. With a yield return of 5.4% on this property, it is above average for a Stamford BTL investment.

Price: OIRO £132,000
Income: £7,140pa (Approx. Rent: £595pcm)
Yield: c5.4%
Click this link for more details on this property:
http://www.rightmove.co.uk/property-for-sale/property-66261122.html


Property 2
2 Bed End Of Terrace For Sale.  Guide Price: £165,000
Lonsdale Road, Oakham.  On the market with Moores Estate Agents


Modern, spacious and in excellent order. That is exactly what you can expect from this brilliant BTL rental. These properties are excellent lets for landlords, and we could easily let this property by the end of this week!
 
 
Guide Price: £165,000
Income: £7,500 (Approx. £625pcm)
Yield: 4.5%
Click this link for more details on this property:


Property 3
3 Bed Semi-Detached House For Sale.  Guide Price: £189,950
Hectors Way,  Oakham.  On the market with UPP Property Agents

We have successfully let out this property for many years for the current landlord, so, we know what an excellent investment property this is.  The perfect rental investment; modern energy efficient home, flexible accommodation, sought after location...what's not to love?
 
 
Guide Price: £189,950
Income: £8,580pa (Rent Approx.£715pcm)
Yield: c4.6% (based on £185k purchase price)
 
Click this link for more details on this property:
 
 
With demand continuing to outstrip supply, if you are considering selling or renting a property you own and would like a valuation, please click this link:
http://www.upp-property.co.uk/pages/request_valuation


Best wishes

David Crooke, owner and managing director


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


Twitter: @UPPproperty


Understanding People & Property

Sales & Lettings