This week's 3 Best Property Buys in Stamford & Rutland

 

PROPERTY 1)

WHAT? 2 Bedroom Terrace 

WHERE? Barleythorpe Road, Oakham

 

WHY? Chain free, close to Oakham railway station, fully modernised with off-road parking and a rear garden.

HOW MUCH?  Guide Price £180,000

 

FINANCIAL RETURN?

Rent Approx. £600pcm

Annual Income c£7,200

Yield c4%

MORE DETAILS?  Click here...

http://www.rightmove.co.uk/property-for-sale/property-52698924.html

 

 
PROPERTY 2)  

WHAT? 3 Bedroom Terrace

WHERE? Kesteven Road, Stamford

WHY? Chain free, well proportioned property with off-street parking and a large garden with workshop.

   

HOW MUCH?  Offers over £208,000

 

FINANCIAL RETURN?

Rent Approx. £750pcm

Annual Income c£9,000

Yield c4.6%

MORE DETAILS?  Click here...
http://www.rightmove.co.uk/property-for-sale/property-63768829.html

 

 

Property 3)

WHAT? 2 bedroom modern apartment

WHERE? Linnet Court, Uppingham

WHY? A modern and spacious apartment in a popular location with allocated parking and a shared garden.  Available on 80% shared ownership scheme.

 

HOW MUCH?  Guide Price £105,000

 

FINANCIAL RETURN?

Rent Approx. £475pcm

Annual Income c£5,700

Yield c5.4%

 

MORE DETAILS?  Click here...

http://www.rightmove.co.uk/property-for-sale/property-52501902.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

 

The 2018 Stamford Property Market Forecast

 

 

 

 

 

 

 

 

 

 

 

Looking back at the newspapers and magazines published in this first month of 2018, it seemed popular to predict the future of the British housing market.   Which is all very well and good, but what does that mean to us here in Stamford?  Well, here are my thoughts on The Stamford Property Market.

With the average 5-year fixed rate mortgage at 1.98% (down from 3.47% in 2014) and 2-year fixed rate at 1.47% (down from 2.37% in 2014), mortgage interest rates offered by lenders are at an all-time low (even with the slight increase on the Bank of England base rate a few months ago).  Added to this, last year Stamford had a low unemployment rate of 3.4% which contributed to maintaining a decent level demand for property (interestingly – an impressive 503 Stamford properties were sold in last 12 months).  Whilst finally, the number of properties for sale in the town has remained limited, thus providing support for Stamford house prices, meaning Stamford Property Values are 5.8% higher than a year ago.

However, moving into 2018 there will be greater pressures on incomes as inflation starts to eat into real wage growth, which will wield a snowballing strain on consumer confidence.  Interestingly, information from ‘Rightmove’ suggested over a third of property listed in October and November had their asking prices reduced - the highest percentage of asking price reductions in the same time frame over 5 years. Still, a lot of that could have been house-sellers being overly optimistic with their initial pricing.

In terms of what will happen to local property values in the next 12 months a lot will be contingent on the type of Brexit we have and the impact on the whole of the UK economy. There will be much discussion surrounding the central London property market in the coming year, and if the banking and finance sectors are negatively affected with a poor Brexit deal then the London market is likely to see more of an impact.

Nevertheless, local homeowners and landlords should be aware of what happens in the rollercoaster housing market of central London, but not panic if prices do drop suddenly there in 2018. Over the last 8 years, the central London property saw house prices grow by 89.6% in those last 8 years, whilst in Stamford, they only rose by 30.2%). So, we might see a heavy correction in the capital, whilst more locally, something a little more subdued.

Hindsight is always better than foresight and predicting anything economic is all well and good when you know what is around the corner. At least we have the Brexit divorce settlement sorted and, as the UK economy and the UK housing market are intertwined, it all depends on how we deal as a country with the Brexit issue.

Oh, and house prices in Stamford over the next 12 months?

 

I believe they will end up between 0.2% lower and 1.4% higher, although it will probably be a bumpy ride to get to those sorts of figures.

 

If you have a property in the Stamford area to sell or rent, and would like a valuation please contact me, and I will be happy to help.

 

David Crooke

MD & Owner

UPP Property, Sales & Lettings 01780 484 554

david@upp-property.co.uk

 

 

 

The Future of the Rutland Buy-To-Let Market

A recent report issued by the ‘Home’ website suggested many landlords are selling their buy-to-let investments due to increasing burdens on them.

Their findings suggest the number of new properties that came onto the sales market jumped by 11% across the UK as a result.





Those increasing ‘burdens’ include new tax rules coming in over the next 3 to 4 years and the announcement that all ‘self-managing landlords’ (i.e. landlords that don’t use a letting agent to look after their buy-to-let property) will soon need to register with a compulsory redress scheme to resolve tenant arguments and disputes.

Other recent legislations that have hit the private rented sector include the ‘Right to Rent’ regulation which came in to operation last year, whereby landlords have to certify their tenants have the legal right to live in the UK. This is, of course, one of the services included if landlords appoint a letting agent to manage their property. For ‘self-managed landlords’ who ignore these regulations, the consequences and fines can be severe.

So, what about those properties being released onto the sales market? 

 

Well, overall, Oakham doesn’t match the quoted national trend, with the number of properties on the market actually rising by 54% in the last year.  It was particularly interesting to see the number of flats increase by an impressive 338%, yet the number of semi's on the market only rose by 12%.

 

 

The majority of that movement in the number of properties and the types of properties on the market isn’t down to landlords dumping their properties on the market. The whole property market has changed in the last 12 months, with the majority of the change in the number and type of properties for sale due to the ‘owner-occupier’ market, not landlords.  Over the last 10 years, there has always been a small number of Rutland landlords who have been releasing their monies from their Oakham buy-to-let properties - as is the nature of all investments!

Nationally, the number of rental properties coming on to the market to rent fell by 16% in Q4 2017 compared to Q4 2016, but that isn’t because there are 16% less rental properties to rent – it’s because tenants are staying in their rental properties longer meaning less are coming on the market to be RE-LET.

Nevertheless, some landlords will want to release the equity held in their buy-to-let properties in 2018.  Landlords should seek advice from their lettings agent first, as putting a rental property on the open market often unsettles the tenants and may prompt them to hand in their notice days after you put it on the market, and can create costly void periods.

 

However, some letting agents who specialise in portfolio management have select lists of landlords that will buy with sitting tenants in.  If you have a property portfolio in the Stamford and Rutland area and are considering selling some or all of them - drop me a line as I might have a portfolio landlord for you (with the peace of mind that you won't have any rental voids).

 

David Crooke

david@upp-property.co.uk

 

Tel: 01572 725 825

 

 

 

 

Local youngsters unable to buy their first home ask if ‘Baby Boomers’ and Landlords are to blame?

Many local 20-somethings see home ownership as a distant dream aggravated by ‘Baby Boomers’ - with their free university education with grants, property windfalls, golden final salary pensions and free bus passes. Indeed, a Stamford property purchased in 1977 for £20,000 is worth £337,108 today!

But to blame the 60/70 year olds for that sort of rise seems a little unfair, with the value of the homes rising like rocket it’s hard to make them liable for that. In fact, they simply reacted to the inducements of our property and tax system; in the 1970’s and 1980’s, they were able to take out huge mortgages protected in the knowledge that inflation would corrode the real value of the mortgage, while wage gains boosted their ability to repay. Buy-to-let landlords are also humbly reacting to the peculiar historic inducements of the UK property market.

So, who is to blame?

Hyperinflation in the 1970’s meant the real value of people’s mortgages was wiped out, Margaret Thatcher sold off millions of council houses and then there was Nigel Lawson’s delayed ending of the MIRAS Tax Relief in 1987. The Blair/Brown combo doubled stamp duty in 1997 and again in 2000, which, as a tax on property transactions prohibits a more efficient distribution of the current housing stock.

Under-occupancy is another current concern, i.e. couples living in large 4/5 bed houses despite their children having left home years ago. Governments have had plenty of opportunity to change the draconian stamp duty rules to incentivise mature house owners to downsize.
However, over the last few years there is a change in government policy towards housing and the new breed of buy-to-let landlords that have come about since the Millennium have had their wings clipped recently with the introduction of new tax rules, making it harder to make money out of property unless they are well informed with national data and facts on local property trends.

It’s easy to think the only reason that first time buyers have been priced out of the housing market is because of these landlords. Landlords have been undervalued with the local homes they provide for local people. With first time buyers struggling to save for a deposit, if it weren’t for those landlords providing homes over the last 10/15 years, we would have a bigger housing crisis than we have today. 

Since the global financial crisis of 2008/9, local councils have had to cut services, so they certainly don’t have enough money to build new homes ... homes that were instead available on the private rental market.

Each year, 448 homes are being bought up by buy-to-let landlords in the South Kesteven District Council area when otherwise they might have become available to other buyers.

However, the current national average deposit is £51,800, which is by far the greatest barrier to those wanting to buy their first home. 

For advice on the buy-to-let market, please contact David Crooke, UPP Property on 01780 484 554 or via email on: david@upp-property.co.uk

Flats are 4.9% more affordable than 10 years ago

My research shows that certain types of property are more affordable today than before the 2007 credit crunch.

Just before the 2007 credit crunch that caused property values to plummet, the Rutland property market had peaked with prices hitting the highest levels. Between 2008 and 2010, Rutland property values lay in the doldrums and only started to rise in 2011, albeit quite slowly to begin with.

Nevertheless, even though property values have now passed those 2007 peaks, my research indicates that Oakham flats are now more affordable than they were before the crunch.

Back in 2007, the average value of an Oakham flat stood at £133,810 and today, it stands at £161,946, a rise of £28,136 or 21%.

However, between 2007 and today, we have experienced inflation (as measured by the government’s ‘Consumer Price Index’) of 25.97% meaning that in real spending power terms Oakham flats are 4.9% more affordable than in 2007. Or, if the average Oakham flat (valued at £133,810 in 2007) had risen by 25.97% inflation over those 10 years, today it would be worth £168,560 (instead of the current £161,946).

 


The point I’m trying to get across is that property is more affordable than many people think. First time buyers can get on the ladder as 95% mortgages have been readily available to first-time buyers since 2010.

 It really comes down to a choice and if first-time buyers can get over the hurdle of saving the 5% deposit for a mortgage – they will be on to a winner, especially with these ultralow mortgage interest rates. In fact, a mortgage can be between 10% - 30% cheaper per month than the rental payments on the same house.

Back in the 1960’s and 1970’s, renting in Britain was sneered at and there was a stigma attached to it. However, over the last 10 years we have done a complete U-turn in our attitude towards renting, meaning many find renting a better option and now even a lifestyle choice.

Saving the 5% deposit means going without holidays, gym memberships, multiple satellite movie and sports channels, regularly socialising or the latest smart phone. Therefore, instead of saving to put towards a mortgage deposit 20-somethings choose to rent and have their luxuries.

Over the next 10 - 15 years, the people who choose renting over buying will continue to rise.

Therefore, everyone in the area has a responsibility to ensure that an adequate number of quality local rental properties are safeguarded to meet those future demands. Interestingly, what I have noticed though over the last few years are the expectations of tenants on the finish and specification of their rental home.

Historically, renting a property was only a short-term choice to fill the gap before jumping on the property ladder and therefore, their ‘wants’ were less. Before the millennium, wood chip wall paper and 20-year-old kitchen and bathroom suites were considered the norm – and accepted.

However, tenants’ expectations are becoming more discerning and the tenancy term is increasing (this was backed up recently by stats from a government report), although I have noticed a tendency for many local landlords not to keep the rental payments at the going market rates.

Local landlords will need to be more conscious of tenants ‘needs and wants’ and consider their financial planning for future enhancements to their rental properties over the next 5, 10 and 20 years.

The current and future status of the Stamford and Rutland private rental property market is important, and I frequently help local buy-to-let investors looking to spread their rental-portfolios.  I also enjoy meeting and working alongside first time landlords, to ensure they can navigate through the minefield of rental voids, the important balance of capital growth and yield.


David Crooke, Owner and MD
UPP Property, Sales & Lettings 01572 725 825