Tuesday, 21 February 2017

123 Stamford Households Occupied by Senior Citizen Tenants


Recent statistics published by the Office of National Statistics show that there are 267,704 private rented households in the country occupied by people aged 65 and older, meaning 4.39% of senior citizens are living in private rented property.

It got me thinking two things; How many of these senior citizens have always rented and how many have sold up and become a tenant?  In retirement, ‘selling up’ could make financial sense to the mature generation, potentially allowing them to liquidate the equity of their main home to enhance their retirement income.  I wanted to know why these older people rent and whether there was opportunity for the buy-to-let landlords?

The Prudential recently published a survey that stated nearly 6 out of 10 senior citizen tenants had never owned a home.  2 out of 10 senior citizen tenants were required to sell because of debt, nearly 1 in 10 senior citizen tenants sold their property to use the money to fund their retirement and the remaining rented for other reasons.

Funding retirement is important, as the further life expectancy of a 65 year old Stamfordian is an additional 19.2 years for males and 21.7 years for females (interesting when compared to the National Average of 18.7 years retirement for males and 21.1 years for females).  The burdens of financing a long retirement are being felt by many mature Stamfordians.  The state of play is not helped by rising living costs and ultra-low interest rates reducing returns for savers.

So, what of Stamford?  Of the 2,664 households in Stamford (where the head of the household is 65 or over), not surprisingly 1,937 were owned (72.71%) and 521 (19.56%) were in social housing.  However, the figure that fascinated me was the 123 (4.62%) households that were classed as living in privately rented properties.



Anecdotal evidence, by talking to members of my team and other local property professionals is that this figure is rising.  More and more senior citizens are selling their large Stamford and Rutland homes and renting something more manageable, therefore allowing them to release all of their equity from their old home.  This equity can be gifted to grandchildren (allowing them to get on the property ladder) or invested in plans that produce a decent income and whilst living the life they want to live.

These senior citizen tenants know they have a fixed monthly expenditure and can budget accordingly with the peace of mind that their property maintenance and the upkeep of the buildings are included in the rent.  Many landlords will also include gardening in the rent! Renting is also more adaptable to the trials of being a senior citizen - the capability to move at short notice can be convenient for those moving into nursing homes, and it doesn't leave family members panicking to sell the property to fund care-home fees.

Stamford landlords should seriously consider low maintenance semi-detached bungalows on decent bus routes and close to doctor’s surgeries as a potential investment strategy to broaden their portfolio.
 
Get it right and you will have a wonderful tenant, who if the property offers everything a mature tenant wants and needs, will pay top dollar in rent!
  
If you would like a FREE SALES OR RENTAL VALUATION please get in touch.  We are here to help you buy, sell, rent and manage your homes and property investments.


David Crooke
david@upp-property.co.uk


Owner

 

Understanding People & Property
SALES & LETTING AGENTS

 



Stamford: 01780 484 554      Oakham: 01572 725 825






 

Wednesday, 15 February 2017

The 3 Best Buy-To-Let Deals on this week's Stamford & Rutland property market


Property 1
2 Bedroom Apartment For Sale.  Guide Price £100,000
Edward Street, Stamford.  On the market with Murray Estate Agents
 
Not the most attractive of properties but the value of this property is unquestionable. Offered to the market at what is clearly below market value (please contact the agent to discuss), this property offers tremendous value for money.  I would expect a rental income of c£575pcm which, based on its asking price, is a yield close to 7%. There is some work required to bring this property up to good spec -  and I would be happy to discuss this in more detail with you.

Guide Price: £100,000
Rent: Approx. £575pcm
Yield: 7%
Click this link for more details on this property:
http://www.rightmove.co.uk/property-for-sale/property-58069165.html


Property 2
2 Bedroom Apartment For Sale. Guide Price £119,950
The Sidings, Oakham.  On the market with Moores Estate Agents

Our sales department have sold a similar property to this one in the same block recently (Penthouse Suite). We recommend The Sidings for its sought after location as much as its rental income. With a an expected income of £550pcm - £575pcm, the yield based on the lower figure would work out 5.5%. Fantastic value for money and a really great first investment.

Guide Price: £119,950
Rent: Approx. £550-£575pcm
Yield: 5.5%
Click this link for more details on this property:
http://www.rightmove.co.uk/property-for-sale/property-46855656.html
 
 
Property 3
3 Bedroom Detached House For Sale.  Guide Price £210,000
Mountbatten Road, Oakham.  On the market with UPP Property Agents
 
This property has been under offer for a couple of months, but has recently fallen through close to exchange.  It is a fantastic property should you be looking for your first investment (it would some need cosmetic renovation work), or if you’re looking to flip a property for the first time. Offered to the market at £200,000 and with a return of £750pcm this yield is 4.5%.  Please note the bathroom would need replacing and new carpets fitted to achieve this.


Guide Price: £210,00
Rent: Approx. £750pcm
Yield: 4.5%
 
Click this link for more details on this property:
http://www.rightmove.co.uk/property-for-sale/property-46837449.html

Call: Adrian McCarthy Sales Director, UPP Property Agents on 01572 725 825


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 send me the details and we can discuss it in detail - good and bad!

David Crooke, Owner
david@upp-property.co.uk 

Understanding People & Property

Sales & Lettings





Tel: Stamford 01780 484 554     Oakham 01572 725 825



 
 
 
 
 

Tuesday, 14 February 2017

Stamford Unemployment Drops to 3.6% And Its Effect On Our Property Market

It was late May 2016, The Right Hon. member for Tatton, Mr George Osborne, published an official HM Treasury analysis stating that by the middle of 2018 UK house prices would be lower by at least -10% (and could be even -18%) compared with what is expected if the UK remained in the European Union.

So, since the Referendum are we beginning to show signs of that prophecy? The simple answer is ‘yes and no’.

Good barometers of the UK housing market are the share prices of the country’s biggest building corporations.  Much was made of Barratt Homes’ share price dropping by 42.5% in the 2 weeks after Brexit, along with Taylor Wimpey’s equally drastic drop in the same 2 weeks by 37.9%.  Looking at the most recent set of data from the Land Registry, property values in Stamford are 1.05% down month on month (and the month before that, they had decreased by 0.25%).  So, is this the time to panic and run for the hills?

Well, as I have spoken about many times in my blog, it is naive to look at short term.  The heady days of the property prices ‘rising quicker than a thermometer in the desert sun’ between the years 2011 and late 2016 are long gone – and good riddance.  Yet it might surprise you that during those impressive years of house price growth, the growth wasn’t smooth and all upwards.  Stamford property values dropped by 1.39% in April 2012 and 1.8% in December 2014 – and no one batted an eyelid then.

Property values in Stamford are still 5.37% higher than a year ago, meaning the average value of a Stamford property today is £313,700.  Even the shares of the aforementioned building corporations have increased since early July; with Barratt Homes by 43.3% and Taylor Wimpey by 37.3%. The Office for Budget Responsibility (the government spending watchdog), recently reduced its forecast for house-price growth in the coming years - but only slightly.

The Stamford housing market remains steadfast.  Partly because the wider economy has performed better than expected since Brexit. There is a robust link between the unemployment rate and property prices, and a flimsier one with wage growth. Unemployment in the South Kesteven District Council area stands at 2,500 people (3.6%), which is considerably better than a few years ago in 2012, when there were 4,500 people (6.4%) unemployed in the same area.



However, inflation is the only thing that does worry me. Looking at all the pundits, it will get to at least 3% (if not more) in the latter part of 2017, as the drop in Pound Sterling in late 2016 renders our imports with higher prices.  If that transpires then the Bank of England, whose target for inflation is 2%, may raise interest rates from 0.25% to 2%+.  However, that won’t be so much of an issue as 81.6% of new mortgages in the UK in the last 2 years have been fixed-rate - and who amongst us can remember 1992 with interest rates of 15%?

Forget the two thorns in our side of ‘Brexit’ and ‘Inflation’, the greatest risk to the whole property market is that there are simply not enough properties being built, thus keeping house prices artificially high.

Good news for those with a foot on the property ladder, but not for those first-time buyers who aren’t!
 
If you would like a FREE SALES OR RENTAL VALUATION please get in touch.  We are here to help you.


David Crooke
david@upp-property.co.uk

Owner

 


Understanding People & Property
SALES & LETTING AGENTS

 



Stamford: 01780 484 554      Oakham: 01572 725 825





 

 

Friday, 10 February 2017

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

PROPERTY 1
3 Bedroom Semi-Detached House.  Offers Over £199,950
Burley Crescent, Oakham.  Marketed by Moores Estate Agents
  
A well renovated property can be as good as buying a new build. This property was purchased some 6 months ago, has since undergone extensive refurbishment and is now presented to a very high standard. The location could one be one to consider as it’s slightly out of town. However, the rental return is a no brainer. With a monthly rental valuation at approx. £750pcm, this brings in a yield of 4.5%

Price:  Offers Over £199,950
Rent: Approx. £750pcm
Yield: c4.5%

Click this link for more details on this property:
http://www.rightmove.co.uk/property-for-sale/property-64565354.html

PROPERTY 2
3 Bedroom Terraced House.  Offers In Excess Of £150,000
Edinburgh Road, Stamford.  Marketed by Sharman Quinney
 
Here is a property that is both affordable and would bring in a good yield once the property has been updated to a good rental spec. You could spend c£10k on bringing the property to life and with the location the property sits in, I would expect an income of £725pcm. The net yield would be 4.5% and I have taken into consideration the extra £10k spent.

Price: OIEO £150,000
Rent: Approx. £725pcm
Yield: c4.5% - taking into account £10k renovation costs

Click this link for more details on this property:
http://www.rightmove.co.uk/property-for-sale/property-63746387.html

 
PROPERTY 3
2 Bedroom Semi-Detached House.  Guide Price £169,950
Drift Avenue, Stamford.  Marketed by UPP Property Agents


Another Stamford 'gem' this week, this 2 bedroom end terrace property is located close to the college, shops and walking distance to the town. Highly sought after by young families and presented in excellent order - a great investment opportunity.

My sales director Adrian informs me an offer
of £160,000 would be welcomed by the vendors, thus achieving a yield of 4.7%



Guide Price: £169,950
Yield: c4.7% based on purchase price of £160k

Click this link for more details on this property:
http://www.rightmove.co.uk/property-for-sale/property-46688709.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 send me the details and we can discuss it in detail - good and bad!

David Crooke, Owner
david@upp-property.co.uk

Understanding People & Property

Sales & Lettings





Tel: Stamford 01780 484 554     Oakham 01572 725 825



Wednesday, 8 February 2017

£2.28 Billion – Total Value of Stamford’s Property Market

“How much would it cost to buy all of the properties in Stamford”?  This fascinating question was posed by an 11-year-old son of one of my Stamford landlords when they both popped into our new office on Red Lion Street last week.

Well, just for a bit of fun, I thought I would work out how much values have risen in value since his son was born back in the autumn of 2005.

In the last 11 years, since the autumn of 2005, the total value of Stamford property has increased by 34% or £579.5 million to a total of £2.28 billion.  Truly thought-provoking when you consider the FTSE100 has only risen by 30.78% and inflation (i.e. the UK Retail Price Index) rose by 37% during the same 11 years.

When I delved deeper into the numbers, the average price currently being paid by Stamford households stands at £264,044.… but you know me, I wasn’t going to stop there, so I split the property market down into individual property types in Stamford:
 



Stamford Property Market

Average Value of a Detached Property

Average Value of a Semi-Detached Property

Average Value of a Terraced/Town House Property

Average Value of an Apartment

£390,778

£205,772

£278,272

£115,200
 

It got even more fascinating when I multiplied the total number of each type of property by the average value.  Even though detached houses are so expensive, when you compare them with the cheaper terraced/town houses, you can see detached properties don’t actually fare any better in terms of total pound note value of the terraced/town houses and apartments.
 
     


So, what does this all mean for Stamford and Rutland? 
 
Even though property values are already declining in certain parts of the central London property market, the outlook in our region remains relatively good, as over the last 5 years the local property market was a lot more sensible than central London’s.

Local house values will remain resilient for several reasons. Firstly, demand for rental property remains strong with continued immigration and population growth. Secondly, with 0.25 per cent interest rates, borrowing has never been so cheap and finally, the simple lack of new house building lagging behind current demand, let alone eating into years and years of under investment means only one thing – there may be uncertainty over the next 12 to 24 months but, in the medium term, property ownership and property investment has always, and will always, ride out the storm.
My colleague Adrian and I understand the ever changing Rutland and Stamford property market.  We work hard to keep abreast of which type of property is in demand, we know which location is most sought after - and by whom, and we know what makes a sound investment. 

If you would like a FREE SALES OR RENTAL VALUATION of a property you already own, please get in touch.  We are here to help you.


David Crooke
david@upp-property.co.uk
Owner

 

Understanding People & Property
SALES & LETTING AGENTS




Stamford: 01780 484 554      Oakham: 01572 725 825






 

Thursday, 2 February 2017

My pick of the 'Best Buy-To-Lets' on Stamford's Property Market this week...

4 GREAT properties to choose from this week... but don't delay!

PROPERTY 1

2 Bedroom End of Terrace.  Guide Price £150,000
Kings Road, Oakham.  Marketed by Moores Estate Agents 
 
West Road properties have become highly desirable over the years, especially as they provide excellent rear gardens to accommodate tenants with expanding families.  This property has been refurbished and provides any landlord with a low maintenance property. Rental income would be in the region of £595pcm and the yield would come in at 4.7%.
Guide Price: £15,000
Rent: Approx. £595pcm
Yield: c4.7%
 
Click this link for more details:


PROPERTY 2

3 Bedroom Terraced House.  £170,000
Perth Road, Stamford.  Marketed by Leaders.


The "Scottish Estate” in Stamford comes highly recommended whether you are a first time investor or a landlord looking to expand your portfolio.  Highly desirable properties normally attract longer term tenants, especially as they offer a wonderful living space and good rear gardens.  This property appears to represent excellent value for money, with a rental return of £795pcm, the calculated yield is a very good 5.6%  - rare for Stamford!

Price: £170,000
Rent: Approx. £795pcm
Yield: c5.6%

Click this link for more details:


PROPERTY 3

2 Bedroom End of Terraced House.  Guide Price £169,995
Radcliffe Road, Stamford.  Marketed by Sowden Wallis.


Another excellent find this week is this two bed end of terrace property located within a short walk of the town centre. We currently let out a few properties along this road and the demand for this properties is amazing. We would expect this property to be let out by the time you have finished reading this article. Rental return of £625pcm/£650cm and a yield return of 4.6%
 
Guide Price: £169,995
Rent: Approx. £625/£650pcm
Yield: c4.6%
 
Click this link for more details:
http://www.rightmove.co.uk/property-for-sale/property-64403345.html


PROPERTY 4

2 Bedroom Semi-Detached House.  Guide Price £169,950
Drift Avenue, Stamford.  Marketed by UPP Property Agents.

A wonderful first time investment for anyone looking to dip their toe into the water. This modern house would be relatively low maintenance and has recently had both the kitchen and bathroom replaced, taking out a big expense.  The property is presented beautifully and would pull in a rental return of £650pcm and we have it on good authority that the vendor would accept an offer of £165,000 making the yield an impressive 4.7%


Guide Price: £169,950
Rent: Approx. £650pcm
Yield: c4.7%

Click on this link for more details:
http://www.rightmove.co.uk/property-for-sale/property-46688709.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 send me the details and we can discuss it in detail - good and bad!

David Crooke, Owner
david@upp-property.co.uk




Understanding People & Property

Sales & Lettings





Tel: Stamford 01780 484 554     Oakham 01572 725 825