THE 3 BEST PROPERTY DEALS on the Stamford & Rutland Property Market

Here is what I consider to be the 3 best buy-to-let or first time buy property deals on the Stamford and Rutland property market this week....

 

PROPERTY 1)

WHAT? 2 bedroom maisonette

WHERE? Ladywell, Oakham

WHY? First floor maisonette property with 2 bedrooms, gas central heating and allocated parking.  Properties on this development are always popular with tenants.

  

HOW MUCH?  OIRO £115,000

 

FINANCIAL RETURN?

Rent Approx. £495pcm

Annual Income c£5,940

Yield c5.1%

MORE DETAILS?  Click here...

http://www.rightmove.co.uk/property-for-sale/property-64179643.html

 

 

PROPERTY 2) 

WHAT? 2 bedroom semi-detached

WHERE? John Clare Close, Oakham

WHY? Modern, spacious, ample parking, 2 double bedrooms, good sized rear garden.

    
HOW MUCH? Guide Price £175,000-£180,000

FINANCIAL RETURN?

Rent Approx. £650pcm

Annual Income c£7,800

Yield c4.4%

MORE DETAILS?  Click here...
http://www.rightmove.co.uk/property-for-sale/property-53044395.html

  

Property 3)

WHAT? 3 bedroom semi-detached

WHERE? Gainsborough Road, Stamford

WHY? Good layout with additional benefit of a conservatory, garden with countryside views, 3 bedrooms and a garage.

HOW MUCH?  £212,000

 

FINANCIAL RETURN?

Rent Approx. £750pcm

Annual Income c£9,000

Yield c4.2%

 

MORE DETAILS?  Click here...
http://www.rightmove.co.uk/property-for-sale/property-64128661.html

 

If you are considering investing in property and would like to chat through the figures with me, please contact me.

David Crooke, Owner and MD

UPP Property, Sales & Lettings 

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

Stamford’s ‘Millennials’ set to inherit £585,821 each in property!

That got your attention, didn’t it? 

But before we start, who are the ‘Millennials, the Generation X’s and the Baby Boomers’? Well, they are terms used to describe the different life stages (or subcomponents) of our society.  But when these terms are used so often, it appears particularly vital we have some practical idea of what they actually mean.

So, for clarity;
Generation Z:       Born after 1996
Millennials:           Born 1977 to 1995   
Generation X:       Born 1965 to 1976
Baby Boomers:     Born 1946 to 1964
Silent Generation: Born 1945 and before


My research shows there are 2,917 households in Stamford owned by ‘Baby Boomers’ (born 1946 to 1964) and Stamford’s Silent Generation (born 1945 and before). It also shows there are 4,098 Stamford Generation X’s (born between 1965 to 1976).

Using these demographics, along with homeownership statistics and current life expectancy, around two-thirds of those Stamford 4,098 Generation X’s have parents and grandparents who own those 2,917 Stamford properties, and they will profit from one of the biggest inheritance explosions of any post-war generation to the tune of £975m of Stamford property or £356,754 each - but they will have to wait until their early 60’s to get it!

However, it’s the Millennials that are in line for an even bigger inheritance windfall. There are 2,588 Millennials in Stamford and my research shows around two thirds of them are set to inherit the 3,025 Stamford Generation X’s properties. Those Generation X’s Stamford homes are worth £1.011bn meaning, on average, each Millennial will inherit £585,821; but not until at least 2040 to 2060.





Whilst the Millennials have done far less well in amassing their own savings and assets, they are more likely to take advantage of an inheritance boom in the years to come. This will probably be very welcome news for those Millennials, including some from poorer upbringings who in the past would have been unlikely to receive gifts and legacies.

However, inheritance is not the magic weapon that will get the Millennials on to the housing ladder or tackle growing wealth cracks in UK society, as the inheritance is unlikely to be made available when they are trying to buy their first home.

So, before all you Millennials start running up debts, consider this fact…over 50% of females and around 35% of men are going to have to pay for nursing home care. Sadly, I read recently that 25% of people who have to pay for their care, run out of money. So, if you are a Millennial, potentially there will be nothing left for you.

Of course, most parents want to give their children an inheritance, and the consideration that what you have worked genuinely hard for won’t go to your children is a really awful one. Maybe that is why I am seeing a lot of grandparents doing something meaningful, and helping their grandchildren, the Millennials, with the deposit for their first house.

One solution to the housing crisis is if grandparents (where they are able to), help financially with the deposit for a house. Buying is cheaper than renting – we have proved it many times in these articles, so it’s not a case of not affording the mortgage, the issue is raising the 5% to 10% mortgage deposit.

Maybe families should be distributing a part of the family wealth now (in the form of helping with house deposits) as opposed to waiting to the end… it will make so much more of a difference to everyone in the long run.

Just a thought!

 

This week's 3 BEST PROPERTIES on the RUTLAND & STAMFORD PROPERTY MARKET

PROPERTY 1)

WHAT? 2 bedroom terrace

WHERE? Kesteven Road, Stamford

WHY? Popular location, ideal first time buy or buy-to-let property, 2 double bedrooms and a modern, white bathroom suite.

  

HOW MUCH?  £180,000

 

FINANCIAL RETURN?

Rent Approx. £650pcm

Annual Income c£7,800

Yield 4.3%

MORE DETAILS?  Click here...

http://www.rightmove.co.uk/property-for-sale/property-71035043.html

 

 

PROPERTY 2) 

WHAT? 2 bedroom terrace

WHERE? Drift Road, Stamford

WHY? Total renovation project. No chain. Popular location.

    
HOW MUCH? Guide Price £150,000 

FINANCIAL RETURN?

Rent Approx. £625pcm (in a renovated state - I am happy to advise you as to how much renovation would be needed for the rental market).

Annual Income c£7,500

Yield c5%

MORE DETAILS?  Click here...
http://www.rightmove.co.uk/property-for-sale/property-64049851.html

  

Property 3)

WHAT? 3 bedroom, modern townhouse

WHERE? Dawson Court, Oakham

WHY? Sought after central location, within easy walking distance to railway station and town centre, flexible accommodation.  Properties on this development are always popular with tenants.

HOW MUCH?  Guide Price £179,000

 

FINANCIAL RETURN?

Rent Approx. £650pcm

Annual Income c£7,800

Yield c4.3%

 

MORE DETAILS?  Click here...
http://www.rightmove.co.uk/property-for-sale/property-70357763.html
 

If you are considering investing in property and would like to chat it through with me, I would love to hear from you.  As a landlord myself, I know what makes a sound property investment. 

David Crooke, Owner and MD

UPP Property, Sales & Lettings 

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

Rutland’s £21,216,000 “RENTIREMENT” Property Market Time Bomb

Yes, I said ‘Rentirement’, not retirement ... rentirement and it relates to the 136 (and growing) 50-60 year old Rutlanders who don’t own their own home but privately rent it from a buy-to-let landlord.





 For some, the private rental market gives them the opportunity to ‘try the area before they buy’ if they are relocating here to be closer to their families. But for others, the truth is that these residents are likely to retire soon with little more than their state pension of £155.95 per week, perhaps with a small private pension of a couple of hundred pounds a month, meaning the average retiree at 67 years of age can expect to retire on about £200 a week.

 The average rent in Oakham is £650pcm, so a lot of the retirement “income” will be taken up in rent, resulting in the remainder being paid for from their savings. Alternatively, the taxpayer will have to stump up the bill, and with life expectancy currently in the mid to late 80’s, that is quite a big bill. In fact, to be precise, that’s a total of £21,216,000 over the next 20 years to be paid from the tenant’s savings or from the taxpayer’s coffers.

You might say it’s not fair for taxpayers to pick up the bill and that these mature renters should have start saving earlier to be able to afford their rent in retirement. However, in some circumstances the reason these people are privately renting in the first place is that they were never able to find the money for a mortgage deposit on their home, or they didn’t earn enough to qualify for a mortgage …and now as they approach retirement with hope of a nice council bungalow, that hope is diminishing because of the council house sell off in the 1980’s.

For a change, the Rutland 30 - 40 somethings will be better off, as their parents are more likely to be homeowners and cascade their equity down the line when their parents pass away. That is what is happening in Europe, for example, where renting is more common than home ownership. The majority of 20-40yr olds rent, but by the time they hit their 50’s and 60’s (and retirement), they will invest the money they have inherited from their parents passing away and buy their own home much later in life.

The decreasing number of new bungalows being built has more to do with supply than demand. Commercially, there is more money for new homebuilders in constructing townhouses than there is in constructing bungalows. Bungalows are voraciously greedy when it comes to the land they need, because they need a much larger footprint for the same amount of square meterage as a 2-3 storey house.

The impact of this scenario on our housing market is notable, as demand will continue to rise for bungalows, but the supply will remain the same. We all know what happens when demand outstrips supply – purchase prices and rental amounts for bungalows will inevitably go up.


David Crooke
Owner, MD
UPP Property 01572 725 825

 

Stamford Private Rents Hit £11.82 per sq. foot

One the best things about my job is helping landlords with their strategic portfolio management. Many metrics most property professionals (including myself) use when deciding the viability of a rental property is what properties are selling for, the average rent, the yield and an average value per square foot.


  However, another metric I like to use is the average rent per square foot. It is a great way to judge a property from tenant’s perspective i.e. what space they get for their money. Now of course, location is a huge influencing factor when it comes to rents, hence rent per square foot. 

The current average £ per square foot on Stamford property values (split down by type) are (and I must stress, these are average figures, so there will an enormous range in these figures);

· Stamford Detached Property - £281 / sq ft

· Stamford Semi Detached Property - £267 / sq ft

· Stamford Terraced Property - £308 / sq ft

· Stamford Apartments - £315 / sq ft


The extent of space you get for your rent is replicated in the space you get for your money when buying a property. The average size of rental property in the Stamford area is 868.6 sq ft - interesting when compared to the national average of 792.1 sq ft.

This means the average rent per square foot currently being achieved on a Stamford rental property is £11.82 per sq ft per annum

 So, what can be deduced from this?

  Whilst I am able to quote the average overall figure and the fact my research shows there is a correlation between the average £ per sq ft figures on property values and average £ per sq ft on rental figures as a property grows in size, something quite intriguing happens to those figures in terms of what the property will sell for and what it will rent for, when we change and increase the size of the property.

 Doubling the size of any property doesn’t mean you will double the value of it, in either value or rent. This is because the marginal value increases diminish as the size of the property increases. In layman’s terms, subject to a few assumptions, doubling the size of the house doesn’t mean doubling the value. 

 What really happens is a doubling of the size gives only an approximately 40% to 65% uplift in value, but here comes the even more fascinating part … when it comes to the rental figures, doubling the size of the house, only means 20% to 45% in increase in rent.

 In a future article, I will be discussing the actual added value an extension can bring, but in the meantime, in an overall and sweeping statement, most of the time it makes sense to extend if you are going to live in the property as long as the extension is proportionate to the property, but if you are going to rent it out ... possibly not. 

David Crooke
Owner & MD
UPP Property, Sales & Lettings 01780 484 554

 

The 3 BEST Properties on the Stamford & Rutland Property Market this week are...

PROPERTY 1)

 

WHAT? 3 bedroom terrace

WHERE? Churchill Road, Stamford

WHY? Popular location, looks to be in good order internally, ample off-road parking, low maintenance rear garden.

 

 
HOW MUCH?  £195,000

 

FINANCIAL RETURN?

Rent Approx. £700pcm

Annual Income c£8,400

Yield 4.3%

MORE DETAILS?  Click here...

http://www.rightmove.co.uk/property-for-sale/property-63879802.html

 

 

PROPERTY 2) 
 

WHAT? 2 bedroom semi-detached

WHERE? Gainsborough Road, Stamford

WHY? Cul-de-sac position, 2 double bedrooms, garage and garden

   

HOW MUCH? Guide Price £190,000

 

FINANCIAL RETURN?

Rent Approx. £650pcm

Annual Income c£7,800

Yield c4.1%

MORE DETAILS?  Click here...
http://www.rightmove.co.uk/property-for-sale/property-71074208.html
 

 
Property 3)

 

WHAT? 2 bedroom Victorian terrace

WHERE? Brooke Road, Oakham

WHY? Sought after Victorian terrace, 2 double bedrooms, attractive garden, close to town centre and railway station, 2 reception rooms.

   

HOW MUCH?  Offers Over £190,000

 

FINANCIAL RETURN?

Rent Approx. £650pcm

Annual Income c£7,800

Yield c4.1%

 

MORE DETAILS?  Click here...
http://www.rightmove.co.uk/property-for-sale/property-68734460.html

 

If you are considering investing in property and would like to chat it through with me, I would love to hear from you. 

I look forward to discussing property with you.

David Crooke, Owner and MD
UPP Property, Sales & Lettings 

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

Local homeowners see property values rise by more than 256% over the last 20 years.

In 2018, UK interest rates are expected to stay low - even with the additional 0.25% increase that is expected in May or June. That rise will add just over £20 to the typical £160,000 tracker mortgage, although with 57.1% of all borrowers on fixed rates, it will probably go undetected by most buy-to-let landlords and homeowners.

It’s also unlikely we will see any more interest rate rises due to the fragile nature of the British economy and the Brexit challenge. Even though mortgages will remain inexpensive, with retail price inflation outstripping salary rises, it will still very much feel like a heavy weight to some households.

In 2017, the Stamford and Rutland housing market was a little more subdued than in 2016, and that will continue into 2018. Property ownership is a medium to long-term investment, so looking at that long-term time frame the average Rutland homeowner who bought their property 20 years ago has seen its value rise by more than 256%. 

The majority of that historic gain in values has come from property market growth, although some of that will be homeowners directly adding value by modernising, extending or developing their home.

The following chart compares the different property types in Oakham and the profit made by each type…



Looking at the factors that could affect future local and national house price growth/profit; one important element has to be the building of new homes. This has picked up in 2017 with 217,350 homes coming on to the UK housing ladder in the last year (a 15% increase on the previous year’s figures of 189,690). 

Another factor that will affect property prices in 2018 is the likely shift in the balance of power between buy-to-let landlords and first-time buyers, tipping more towards first-time buyers. The Council of Mortgage Lenders expects the number of buy-to-let mortgages to drop by 34% from levels seen in 2015. This is because of taxes being increased recently on buy-to-lets and harder lending criteria for buy-to-let mortgages. First time buyers will also be helped by The Chancellor eradicating Stamp Duty for all properties up to £300,000 bought by first-time buyers in the recent budget.

Buy-to-let landlords will have to work smarter in the future to continue to make decent returns from their investments. Even with the tempering of house price inflation in 2017, most buy-to-let landlords and homeowners are still sitting on a copious amount of growth from previous years.

However, to ensure this growth continues will require landlords and homeowners to strategically manage their investments and to make informed decisions in relation to return on investments, yield and capital growth requirements over the short, medium and long-term.

If you would like such advice, speak with your current letting agent, or feel free to drop me a line.


David Crooke 
Owner, MD
 david@upp-property.co.uk / 01572 725 825