This week's 3 Best Buy-To-Let deals in Stamford & Rutland with 5+% yields...

Property 1:
3 bedroom property for sale. Offers in Excess of £150,000
New Cross Road, Stamford.  On the market with Smart Move.

 

The Stamford rental market rarely offers a yield on an investment that would achieve at least 5%.  This property does exactly that! Based on a purchase price of £150,000 and a conservative rental return of £625pcm this would bring in exactly 5%.  I would be tempted to offer to market at £675pcm which would bring in 5.4% yield.  The Stamford rental market is extremely hot and this is a very sound and solid rental investment.
 

Price: OIEO £150,000
Rent: Approx. £675pcm
Yield: c5.4%

Click this link for more details:

http://www.rightmove.co.uk/property-for-sale/property-51640378.html

Property 2:
2 bedroom maisonette for sale.  Guide Price £135,000
Queens Road, Uppingham.  On the market with UPP Property Agents.

Another rare find in Uppingham that would bring in a yield of over 5%.  This property has been totally refurbished to offer an outstanding first floor maisonette which would need no initial maintenance or upkeep.

This property would be ready to go the day you collect keys. With a rental return of £575pcm this would bring in a yield of 5.2%.  Another serious contender.

 

 

Guide Price: £135,000

Rent: Approx. £575pcm

Yield: 5.2%

 

Click this link for more details:

http://www.rightmove.co.uk/property-for-sale/property-44016264.html


Property 3:
2 Bedroom Flat For Sale.  Guide Price £129,950
The Sidings, Oakham.  On the market with UPP Property Agents

The last of the over 5% yields for the week! Offered at £550pcm and based on its purchase price, that would bring in a fantastic gross yield of 5.1%

 

The location of this property is part of its' attraction as it is located within a 5 stroll to the station and town centre. It is very rare to find an investment with a yield of over 5%, but this week we have found 3!

 

 

 

Guide Price: £129,950

Rent: Approx. £550pcm

Yield: 5.1%

 

Click this link for more details:

http://www.rightmove.co.uk/property-for-sale/property-43995063.html

 

If you are considering purchasing a different investment property, and would like to discuss it in detail, please contact me via: david@upp-property.co.uk or call 01572 725 825

 

Alternatively, if you have a property and are unsure of its sales or rental value, please contact UPP Property Agents on 01572 725 825.

89.3% of Stamford properties have 3 or more bedrooms – Problem or Opportunity?

The orthodox way of classifying property in the UK is to look at the number of bedrooms rather than its size in square metres (although now we are leaving the EU, I wonder if we can go back to feet and inches?).  It seems that homeowners and tenants are happy to pay for more space.

It’s quite obvious, the more bedrooms a property has the bigger it is likely to be. The reason being not only the actual additional bedroom space, but homes with more bedrooms tend to have larger / more reception (living) rooms. However, if you think about it, this isn’t so astonishing given that properties with more bedrooms would typically accommodate more people and, therefore, require larger reception rooms.

The homeowners and landlords I talk to are always asking me which attributes and features are likely to make their property comparatively more attractive, and which ones may detract from the price.  Over time, buyers’ and tenants’ wants and needs have changed.  In Stamford, location is still the No. 1 factor affecting the value of property, and a property in the best neighbourhoods, say off Casterton Road, Rutland Terrace or Roman Bank, can command a price nearly 50% higher than a similar house in an ‘average’ area.  However, after location the next characteristic that has a significant influence on the desirability, and thus price of property, is the number of bedrooms and the type (i.e. Detached/ Semi/Terraced/Flat).

In previous articles, I have analysed the Stamford housing stock into bedrooms or type of property, but until now I have never cross-referenced bedrooms against type.  These figures for the South Kesteven District Council area make fascinating reading; it shows 89.3% of all properties in the area have 3 or more bedrooms.

	Detached	Semi-detached	Terraced (including end-terrace)	Flat
1 bedroom	10	35	20	74
2 bedrooms	281	930	1,170	516
3 bedrooms	3,002	6,627	3,527	109
4 bedrooms	6,469	1,527	765	29
5 or more bedrooms	2,874	401	172	6

 

I was genuinely surprised at the low numbers of 1 and 2 bed properties, in particular 2 bed semi-detached houses, especially as tenants like the smaller 1 and 2 bed properties in Stamford.  You see, it might interest the homeowners and landlords of Stamford, that there has been a change in the numbers of properties on the market and the split in bedrooms on the market over the last 12 months:

·         12 months ago, 4 x 1 bed properties were for sale in Stamford, today 15, a rise of 275%

·         12 months ago, 20 x 2 bed properties were for sale in Stamford, today 26, a rise of 30%

·         12 months ago, 38 x 3 bed properties were for sale in Stamford, today 55, a rise of 45%

·         12 months ago, 26 x 4 bed properties were for sale in Stamford, today 22, a drop of 15%

·         12 months ago, 16 x 5+ bed properties were for sale in Stamford, today 25, a rise of 56%

 

It can quite clearly be seen more Stamford properties have become available, which can only be good news for Stamford first time buyers and Stamford buy-to-let landlords looking for a bargain (especially post Brexit) as property prices have stopped rising at the silly rates they were 12-18 months ago.

For several years Stamford buy-to-let investors have been the only buyers at the lower end (starter home sector) of the market, as they have been enticed by high tenant demand and attractive returns.  Some landlords believe their window of opportunity has started to close with the new tax regime for landlords, whilst it already appears to be opening wider for first-time buyers.  This is great news for first time buyers, but one final note for landlords – all is not lost ... you can still pick up bargains, you just need to be a lot savvier and do your local homework.

For advice on buying, selling, renting and managing your homes and investments please contact me via david@upp-property.co.uk or call me on 01780 484 554.

 

This week's 3 Best Buy-To-Let Deals in Rutland and Stamford

Property 1:

2 Bed Flat For Sale.  £117,500
North Street West, Uppingham.  On the market with Moores.

 

I’ve picked out this apartment because it is close the centre of the town, appears to be in excellent order and with an income of £495pcm this property would easily bring in over 5% yield. We have recently let 2 terraced properties in Uppingham and both properties had 3 - 4 tenancy applications each.

 

This property looks to have been refurbished already and would, therefore, bring in a quick rental income.

 

Price: £117,500

Rent: Approx. £495pcm

Yield: +5%

Click here for more details on the property:

 http://www.rightmove.co.uk/property-for-sale/property-61379228.html

Property 2:

 

2 Bed Terrace House For Sale.  £295,995

St. George's Square, Stamford.  On the market with Martin & Co.

 

I have selected this Stamford property because we have investors asking about long term house prices in the town. This period town house will always be in demand from purchasers because it is what buyers and tenants are looking for. To be able to purchase this let it out long term, then either sell or live in, is a true attraction. Rental income of c£895pcm - £950pcm. Admittedly the yield scratches 4%, but I’m sure there is a deal to be done here.

Price: £295,995
Rent: Approx. £895-£950pcm
Yield: c4%
Click here for more property details:
http://www.rightmove.co.uk/property-for-sale/property-61369568.html

 

Property 3:
2 Bed Apartment For Sale.  Guide Price £125,000
The Maltings, Mill Street, Oakham.  On the market with UPP Property Agents.

 

This spacious 2 double bedroom town centre apartment was sold (stc) but has fallen through this week. It is a brilliant investment because the figures work. With an offer £120,000 and a rental income of £550pcm the yield return is over 5.5%. I would actually ask for an income of £595pcm on this property, which would push the yield up to close to 6% - an outstanding return for the buoyant Oakham market.

 

 

 

 

Guide Price: £125,000

Rent: Approx. £595pcm

Yield: +5.5%

 

Click here for more details and photos:

http://www.rightmove.co.uk/property-for-sale/,property-43873119.html

 

 

If you are considering purchasing a different investment property, and would like to discuss it in detail, please contact me via: david@upp-property.co.uk or call 01572 725 825

 

Alternatively, if you have a property and are unsure of its sales or rental value, please contact UPP Property Agents on 01572 725 825.

 

27.2% of Stamford homes are 1 person households

I was having an interesting chat with a Stamford buy-to-let landlord the other day when the subject of ‘size of households’ came up in conversation.

For those of you who read my Brexit article published on the morning after the referendum, one of the reasons on why I thought the Stamford property market would, in the medium to long term, be OK, was the fact that the size of households in the 21^st Century was getting smaller – which would create demand for Stamford property and, therefore, keep property prices from dropping.

Looking at the stats’ going back to the early 1960’s, when the average number of people in a home was exactly 3, it has steadily over the years dropped by a fifth to today’s figure of 2.4 people per household.

 

Now that doesn’t sound a lot, but if the population remained at the same level for the next 50 years and the we had the same 20% drop in household size, the UK would need to build an additional 5.28 million properties ( or 105,769 per year).  When you consider the country is only building 139,800 properties a year, it doesn’t leave much for people living longer plus factoring in immigration.

 

Looking closer to home...

In the South Kesteven District Council area, the average number of occupants per household is 2.3 people

When we look at the current picture nationally and split it down into tenure types (i.e. owned, council houses and private renting), a fascinating picture appears.  The vast majority of homeowners without a mortgage are occupied by 1 or 2 people (81% in fact), although this can be explained as residents being older, with some members of the family having moved out, or a pensioner living alone.

People living on their own are more likely to live in a council house (43%) and the largest households (those with 4 or more people living in them) are homeowners with a mortgage.  But again, that can be explained, as homeowners with families tend to need a mortgage to buy.

What surprised me was the even spread of private rented households and how that sector of population are so evenly spread across the occupant range.  In fact, that sector is the closest to the national average, even though they only represent a sixth of the population.

 

When we look at the South Kesteven District Council figures for all tenures (Owned, Council and Private Rented) a slightly different picture appears...

1 person households in Stamford	2 person households in Stamford	3 person households In Stamford	4 person households in Stamford	5+ person households in Stamford
27.20%	39.13%	15.75%	12.95%	4.97%

But it gets even more interesting when we focus on just private rental properties in Stamford, as it is the rental market in Stamford that really fascinates me.

When I analyse the South Kesteven District Council private rental household composition figures, a slightly different picture appears;

Of the 7,653 private rental properties in the South Kesteven District Council area

·         32.6% of Private Rental Properties are 1 person Households

·         34.4% of Private Rental Properties are 2 person Households

·         18.0% of Private Rental Properties are 3 person Households

·         10.1% of Private Rental Properties are 4 person Households

·         4.7% of Private Rental Properties are 5+ person Households

 

 

 

As you can see, Stamford is not too dissimilar from the national picture, but there is story to tell.  If you are considering future buy to let purchases in the coming 12 to 18 months, I would seriously consider looking at 2-3 bed houses.  Even with the numbers stated, there are simply not enough 2-3 bed houses to meet the demand.  They have to be in the right part of Stamford and priced realistically, but they will always let and when you need to sell, irrespective of market conditions at the time, will always be the target of buyers.  

To read more articles on the local property market and where I consider the best buy-to-let deals are in the area, please visit: www.rutlandandstamfordpropertyblog.co.uk

 

 

 

This week's 3 Best Buy-to-Let Deals in Stamford and Rutland

Property 1:
2 Bed End of Terrace House for Sale.  Offers in Excess of £160,000

Redcot Gardens, Stamford.  On the market with Sharman Quinney

  

A great first time purchase for all new Buy-To-Let landlords. A safe purchase along with high desirability from active tenants will make this investment an attractive one. With an expected rental income of £625pcm and with a purchase price of £160,000 the yield return would be in the region of 4.7%. An excellent investment.

Price: OIEO £160,000
Rent: Approx. £625pcm
Yield: 4.7%
Click this link for more details:
http://www.rightmove.co.uk/property-for-sale/property-60981731.html


Property 2:
3 Bed Semi-Detached House for Sale.  Offers in Excess of £170,000

Wheatley Avenue, Uppingham.  On the market with Gilbert & Thomas.

A wonderful 3 bed semi located with close proximity of the A47 and the town centre. There appears to be a small amount of work required to bring the property up to spec', however, it would be worthwhile as the property would be let out immediately in good order.  Expect an income of £695pcm and a yield return of just over 4.9%.

 

Price: OIEO £170,000

Rent: Approx. £695pcm

Yield: 4.9%

Click this link for more details:

http://www.rightmove.co.uk/property-for-sale/property-55617199.html

Property 3:

3 Bed Town House for Sale.  Guide Price £199,950

 

Kilburn End, Oakham.  On the market with UPP Property Agents.

 

These town houses have increased in rental value over the years and they now achieve a figure of £725pcm and with a purchase of around £195,000 your yield return would be close to 4.5%.

 

The town house market for rental investors are a tremendous purchase especially as tenants who take these properties tend to stay on average for 3 years.

 

 

 

Guide Price: £199,950

Rent: Approx. £725pcm

Yield: 4.5%

 

Click this link for more details:

http://www.rightmove.co.uk/property-for-sale/property-43671039.html

On the market with UPP Property Agents. Please call 01572 725 825
www.upp-property.co.uk


For advice on buying, selling, renting and managing your homes and property investments in Rutland and Stamford, please call David Crooke on 01780 484 554 or email: david@upp-property.co.uk