Average Rent Paid by Tenants in Stamford Rise to £839pcm

Back in the spring, there was a surge in landlords purchasing buy-to-let as they tried to beat George Osborne’s new stamp duty changes deadline on the 1^st April 2016.

To give you an idea of the sort of numbers we are talking about, below are the property statistics for sales either side of the deadline in PE9.
 

Jan 2016:      41 properties sold

Feb 2016:      36 properties sold

March 2016:  79 properties sold

April 2016:     23 properties sold

May 2016:      42 properties sold

Normally, the number of sales in the spring months is very similar, irrespective of the month.  However, as one can see, this year was a completely different picture as landlords moved their purchases forward to beat the stamp duty increase.  You would think that even with a basic knowledge of supply and demand economics, rents would be affected in a downwards direction?

However, there appears to be no apparent effect on the levels of rent being asked in Stamford - and more importantly achieved - and this direction of rents is not likely to inverse any time soon, particularly as legislation planned for 2017 might reduce rental stock and push property values ever upward.

The decline of buy-to-let mortgage interest tax relief will make some properties loss-making, forcing landlords to pass on costs to tenants in the form of higher rents just to stay afloat.  Even those who can still operate may be deterred from making further investments, reducing rental stock at a time of severe property shortage.

It's worth noting that it’s not all bad news for tenants.  Whilst average rents in Stamford since 2005 have increased by 14.5%, inflation has been 38.5% over the same time frame, meaning Stamford tenants are 24% better off in real terms when it comes to their rent (which is a sizeable chunk of most people’s monthly household budgets).

I found it particularly interesting looking at the rent rises over the last 5 years in Stamford, as it was at that time we started to see the very early green shoots of growth of the Stamford economy.  As a whole, following 2011’s 'Credit Crunch', rents in Stamford have risen by an average of 1.6% a year.

The view I am trying to portray is that while renting is often portrayed as the unfavorable alternative to home ownership, many young Stamford professionals like renting as it gives them adaptability with their life.  Rents will continue to rise which is good news for landlords as buy-to-let is an investment but, as can be seen from the statistics, tenants have also had a good deal with below inflation increases in rents in the past.  It’s a win-win situation for everyone although on a very personal note, it’s imperative in the future that tenants are not thwarted from saving for a deposit by excessive rental hikes – there has to be a balance.

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.

UPP Property Agents - For professional advice on buying, selling, renting and managing your homes and property investments.

David Crooke
Owner

 

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 with 4.3% - 5.5% yields

Property 1:

2 Bed Terraced House for Sale.  £175,000

Radcliffe Road, Stamford.  Marketed by Knight Partnership

 

Radcliffe Road is a highly desirable, sought after location in Stamford and these period terrace properties never fail to let.  Offered with a rental income of £625pcm, the yield return comes in at 4.3%. But, more importantly, the property would have little to no void periods, providing an all round rental income.

Price: £175,000
Rent: Approx. £625pcm
Yield: c4.3%
Click this link for details on this property:

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

Property 2:
2 Bedroom Coach House for Sale.  £145,000
The Maltings, Ascot Close, Oakham.  Marketed by Belway Homes

With so many new build properties being built in Stamford & Rutland, it can be hard to ignore that there are some hidden gems available if you’re prepared to purchase a new build.

 

This coach house comes with 2 bedrooms and would be available from new and would provide 'the edge' over other available rental properties on the market.  With a rental return of £625pcm, the yield would come in at £5.2% (based on a purchase of £145,000).  In some cases the developers of new builds might even offer a discount for a quick completion.

 

Price: £145,000

Rent: Approx. £625pcm

Yield: c5.2% (based on purchase price of £145,000)

Click this link for more details on this property:

http://www.rightmove.co.uk/new-homes-for-sale/property-45456324.html

Property 3:
2 Bedroom Apartment for Sale.  Guide Price £119,950
The Sidings, Oakham.  Marketed by UPP Property Agents

Another wonderful rental property to hit the market this week is this 2 bedroom modern apartment, located within close proximity to the train station and the town centre.

 

The rental income on this block of flats has steadily increased and they now command a rental income of £550pcm, which is a gross yield of 5.5%.

 

 

 

 

Price: £119,950

Rent: Approx. £550pcm

Yield: c5.5%

Click this link for more details on this property:

http://www.rightmove.co.uk/property-for-sale/property-45389175.html

 

If you would like to discuss any of these properties 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

 

Stamford's Property Values Increase by 1.49% Last Month

“How's the Stamford housing market doing?” asked one of our property vendors last week.  “Quite strange”, I replied.  Our seller was perplexed!  Let me explain...

Even the Brexit vote has not hindered the steady rise in Stamford property values, as property values went up 1.49% last month alone, leaving Stamford values 8.12% higher than a year ago.  


An increase in demand from buyers and an uninspiring level of supply (i.e. the number of properties on the market) has driven up the value of Stamford’s housing.

...And that is where the issue is.  With Brexit, the coalition of the 2010-15, a double-dip recession and post credit crunch fallout, I was perplexed that our local property market (and values) has remained so strong, still 15.6% higher than 20 months ago.  That is until you start to look into the real reasons why we find ourselves in such a great place.

The housing market as a whole is built on the foundations of basic economic rules that any GCSE Economics student should understand.  However, at a time when as a country we seem eager to uncouple ourselves from all manner of proven facts, anything is up for grabs.

Even the wary Royal Institute of Chartered Surveyors (RICS) said most of its chartered surveyors anticipated UK house prices to increase in the next 6 months, which seems contradictory given economic cautions from HM Treasury.  Even though inflation will rise to around 2% to 3% in 2017 and perhaps a little more in 2018 because of the Sterling’s devaluation, together with a high probability of a decelerating GDP and a slight rise in unemployment, how can the RICS and most of my landlords and sellers remain so confident about the value of our homes?

If we look at where we are starting from, nationally we have a solid base of low unemployment, low inflation and preposterously low interest rates, and here in Stamford the local economy is doing quite well for itself. Confidence also plays a part.  Confidence can supersede basic economic facts for a short time at least, which is why actual property market changes tend to be more exaggerated, as confidence can turn both positive and negative very quickly.

The fact is, there is a long-term relationship between property values, wages and unemployment.  

 

For example, looking at the graph below, you can quite clearly see the ratio of property values to earnings is nowhere near as high as it reached in 2008 and currently is in the middle of the range for the last 30 years.  As a country, we are in a strong position.

 

Property values might drop slightly in 2017, but based on what we know of the UK economy now, values are not projected to move that much over 2017 or 2018.  Going into the next 2 years, we are in much better financial shape as a country compared to the last 2 crashes of 1987 and 2008.

Confidence will continue to be the key player in the housing market for a while longer, and this may spur some much needed second-hand market activity.

If you are considering selling your own property (be that your own home or property investment), and would like your property valued, please get in touch.  I keep an eye on the local property market on a daily basis as it enables me to give the best advice.

David Crooke

Owner

 

UPP Property Agents - Sales & Lettings

Rutland 01572 725 825 and Stamford 01780 484 554

david@upp-property.co.uk

  

 

Rutland's Housing Crisis... Only 2.5% of Homes For Sale

Our local property market continues to disregard the end of the world prophecies of a post-Brexit fallout with a return to ‘business as usual’ feel after the summer break.

The challenge every property buyer has faced over the last few years is a lack of choice… there simply hasn't been much to choose from when buying (be it for investment purposes or owner occupation). 


Numbers are still well down on what would be considered healthy levels from earlier on in this decade, as there remains a substantial demand/supply imbalance.  Until we start to see consistent and steady increases in properties coming on to the market, the market is likely to see upward pressure on property values continue.

For example, in the last few months, LE15 has seen an average of 112 new properties coming onto the market, not bad when you consider for some months last year the average was in the mid 60’s.  According to my research, with the average Oakham property value hitting a record high at almost £326,450, the shortage of properties on the market over the last 2 years has contributed to this ‘fuller' average property figure.

As I write this article, 2.53% of Oakham properties are on the market for sale.  In terms of actual chimney pots, that equates to 99 properties on the market in Oakham (within 1 mile of the centre of Oakham), which, when compared to only a year ago when that figure stood at 123, is a slight decrease in the number of properties available to buy.  However, split that down into the type of property, it makes for even more fascinating reading...

• Detached Properties in Oakham: 48 on the market a year ago, compared to 35 on the market now – a  decrease of 27%
• Semi-Detached Properties in Oakham: 18 on the market a year ago, compared to 28 on the market now - an increase of 56%
• Terraced Properties in Oakham: 27 on the market a year ago, compared to 19 on the market now – a decrease of 30%
• Flats / Apartments Properties in Oakham: 18 on the market a year ago, compared to 11 on the market now – a decrease of 39%

This is evidence of strength in the housing market that many didn't expect.  Some commentators believed that the property market wasn't going to be strong enough post-Brexit, as what was considered a ‘sellers' market’ before the Brexit vote and a ‘buyers' market’ in the early months after it, may now be somewhere in-between and the property market might just be coming back into balance.

However, all this will mean property values won't continue to grow at the same extent they have been over the last 12 to 18 months, and in some months (especially on the run up to Christmas and early in the New Year), values might dip slightly.  This won't be down to Brexit but a re-balancing of the property market – which is good news for everyone.

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.

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

David Crooke
Owner

 

UPP PROPERTY - SALES & LETTING AGENTS
Understanding People & Property

Email: david@upp-property.co.uk

Stamford: 01780 484 554      Oakham: 01572 725 825

 

 

The 3 Best Buy-To-Lets on this week's Rutland & Stamford Property Market

Property 1:
2 Bedroom Semi-Detached House For Sale.   £180,000
Byron Way, Stamford.  Marketed by Moores.

 

This is a wonderful investment for anyone looking to invest their capital.  First time landlords often look for low maintenance properties and the more modern they are, the less money will be needed to keep them maintained. This 2 bed property on Byron Way would bring in a rental figure of £695 - £725pcm which would be a minimum yield of 4.7%.

Price: £180,000
Rent: Approx. £695-£725pcm
Yield: c4.7%
Click this link for more details on this property:

http://www.rightmove.co.uk/property-for-sale/property-45260805.html

Property 2:
3 Bedroom Town House For Sale.  Guide Price £180,000
Mallard Court, Oakham.  Marketed by Moores.

Another Buy-To-Let investment gem found in the last 7 days is this property located within a very short walk of Oakham train station and offering 3 bedrooms.  This genre of property is highly sought after by tenants and we’d expect to have a property like this let with little to no void time.  Rent return in the region of £695pcm- £725pcm and a yield of c4.7+%.

Guide Price: £180,000

Rent: Approx. £695pcm - £725pcm

Yield: c.4.7%

Click this link for more details on this property:

http://www.rightmove.co.uk/property-for-sale/property-62809895.html

 

 

Property 3:

2 Bedroom Barn Conversion For Sale.  Guide Price £225,000

Barlow Road, Oakham.  Marketed by UPP Property Agents.

 

Unexpectedly back to the sales market, this magnificent barn conversion is located within a short stroll of the town centre and local train station.  Built and presented to a very high spec', this unique property would command a return of £750pcm, generating a 4% yield. The benefit of this property is the wonderful idea of living in it yourself when the time comes to downsize, whilst in the meantime commanding a good return on the rent.

 

 

Guide Price: £225,000

Rent: Approx. £750pcm

Yield: c4%

Click this link for more details on this property:

http://www.rightmove.co.uk/property-for-sale/property-60751709.html

If you would like to discuss any of these properties 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

  

Stamford's Private Rental Market Set To Grow By 600 Households By 2025

I was having a most interesting chat the other day with a Stamford landlord when we were looking at a property.  As I am sure you are aware, I am always happy to cast my eye over any potential buy-to-let purchase, be that you emailing me a Rightmove link, a brochure in the post or even treading the carpet and seeing it together.  I don't charge for my advice, and you don't even need to be a client of mine.

We got talking about the Stamford property market and this landlord brought up the subject of a report he had read from the Royal Institution of Chartered Surveyors (RICS) and PricewaterhouseCoopers (PwC) that stated almost 1.8m new rental homes are needed by 2025 to keep up with current demand from tenants.  He wanted to know what this meant for Stamford.

Last winter, some commentators said that buy-to-let was in decline, what with the new stamp duty changes and how mortgage tax relief will be calculated.  Others even said 500,000 rental properties would flood the market nationally in the 12 months after the new stamp duty rules came into force on the 1st April 2016, as landlords left the rental market.  Well, I wish the landlords of those 500,000 properties would hurry up and put them on the market – because I have plenty of other potential landlords desperate to buy them!

Back to the matter in hand.  If the RICS and PwC are indeed correct, what does this mean for Stamford?  The fact is, as a country, we are facing a precarious rental shortage and need to get Stamford building in a way that benefits a cross-section of Stamford society, not just the fortunate few.  I call on the Prime Minister to drop the higher stamp duty tax on buy-to-let purchases to ease the pressure on the rental market.

Of the 9,000 households in Stamford, currently 3,000 tenants live in 1,500 private rented properties.  If we apportion those 1.8m households equally around the country, that means in nine years’ time, the number of rental properties in Stamford needs to rise by 600 (i.e. 42.8%), taking the total number of rented properties in the town to 2,100.

Therefore, Stamford landlords need to buy around 70 properties annually between now and 2025 to meet that demand, because according to my calculations, an additional 1,300 people will want to live in all those 'additional' Stamford rental properties.  So, why is the government penalising landlords?

Thankfully the new housing minister Gavin Barwell detached Teresa May's new administration from the Cameron/Osborne ‘laser-like’ focus of just home ownership to solve our housing issues, saying "we need to build more homes for every single type of person needing a home and not focus on one single tenure".

The private rented sector became a stooge under David Cameron's watch and still, with increasingly unaffordable Stamford house prices, the majority of new Stamford households will be relying on the rental sector in the future to house them.  I can only say Westminster must put in place the measures that will allow the rental sector to flourish.  Any restrictions on the supply of rental property will push up rents (bad news for tenants), thus side-lining those members of Stamford society who are already struggling.

Let's hope this new government continues to see the contribution landlords give to the country as a whole.

 

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

 

UPP PROPERTY - SALES & LETTING AGENTS
Understanding People & Property

Email: david@upp-property.co.uk

Stamford: 01780 484 554      Oakham: 01572 725 825