Thursday, 28 July 2016

94.9% of the Rutland homeowners are over 35 yrs old... The affect of their Brexit vote on the Rutland Property Market

Well it’s been 5 weeks since the Referendum vote and we have had a chance to reflect on the momentous decision that the British public took.  Many of you read the article I wrote on the morning of the results.  I had gone to bed the night before with a draft of my ‘Remain’ article all but finished, only to be presented at just after 5am with the declaration by the BBC saying we were leaving the EU!  I don’t think any of us were expecting that outcome!

If you want to read a copy of that original ‘post Brexit’ blog article, please visit my blog www.rutlandandstamfordpropertyblog.co.uk and scroll back to late June to find it.  Now that the dust has settled a little, I will continue to look at what affect the Rutland homeowners vote has had on their own property market so far.

In case you weren’t aware, the residents of the Rutland County Council area voted as follows...

Rutland County Council          ‘Remain’ Votes                        11,353             (49.4% of the vote)

Rutland County Council          ‘Leave’ Votes                           11,613             (50.6% of the vote)

Rutland County Council Turnout: 78.1%

I have read there is some evidence to indicate younger voters were vastly more likely to vote ‘Remain’ than their parents and grandparents and, whilst the polling industry's techniques may have been widely criticised (following them wrongly predicting both the 2010 General Election and the Brexit results), anecdotally, many surveys seem to suggest there was a relationship between age and likelihood to support leaving the EU.

Interestingly, the average age of a Rutland resident is 42.4 years old, which is above the national average of 39.3, which might go someway to back up the way Rutlanders voted.  What I do know is that putting aside whether you were a ‘remain’ or ‘leave’ voter, the vote to leave has, and will, create uncertainty and the last thing the British property market needs is uncertainty (because as with previous episodes of uncertainty in the UK economy – UK house prices have tended to go down).

Interestingly, when we look at the homeownership rates in the Rutland County Council area, of the 10,716 properties that are owned in the Rutland County Council area (owned meaning owned outright, owned with a mortgage or shared ownership), the age range paints a noteworthy picture.

Age 16 to 34 homeowners          538   or        5.0% (Nationally 9.6%)

Age 35 to 49 homeowners      2,636    or     24.6%  (Nationally 29.2%)

Age 50 to 64 homeowners      3,605    or     33.6%  (Nationally 30.7%)

Aged 65+ homeowners           3,937    or     36.7%  (Nationally 30.5%)



So, looking at these figures, and the high proportion of older homeowners, you might think all the Rutland County Council area homeowners would vote ‘remain’ to keep house prices stable and younger people would vote ‘out’ so house prices come down- and they could afford to buy.

But, there's a risk in oversimplifying this.  The sample of the polling firms are in the thousands whilst the country voted in its millions. Other demographic influences have been at play in the way people voted, as early evidence is starting to suggest that class, level of education, the levels of immigration and ethnic diversity had an influence on the way the various parts of the UK voted.

So what I suggest is this – Don’t assume everyone over the age of 50 voted ‘Leave’ and don’t assume most 20 somethings backed ‘Remain’ - because many didn't!

… and the Rutland Property Market? Well, read my original article in the Rutland Property Blog and you can make up your own mind:  www.rutlandandstamfordpropertyblog.co.uk 

 

 

 

Monday, 25 July 2016

This week's 3 Best Buy-To-Lets in Stamford & Rutland are...


Property 1:  4 Bed Semi-Detached House For Sale.  £210,000
Empingham Road, Stamford - On the market with Nest Estates
 

A 4 bedroom semi detached property that will not hang around too long on the open market. This property is located within striking distance of Malcolm Sargent Primary School and will be very popular among long term tenants with young families. You’d be typically looking at min stay of c3years with this investment and with a return of £875pcm on the rent the yield is exactly 5% (based on asking price).

Price: £210,000
Rent: Approx. £875pcm
Yield: 5%, based on asking price

Property 2:   3 Bed Semi-Detached House for Sale.  £190,000
Ashwell Road, Oakham - On the market with Purple Bricks

A superb rental investment and offered in what looks like good order. The property could be bought and presented to the rental market immediately, thus gaining an income straight away. You would see a return of c£675pcm - £695pcm on this investment and that would bring in average yield of 4.3%. We let a larger property on Ashwell Road last week at £750pcm and had 5 viewings within 24 hours with 2 applications. They let out very well indeed.
 
Price: £190,000
Rent: Approx. £675-£695pcm
Yield: 4.3%


Property 3:   2 Bedroom Barn Conversion for Sale.  Guide Price of £225,000
Barlow Road, Oakham - On the market with UPP Property Agents

A simply stunning barn conversion located right in the heart of the town centre. Bringing in a very respectable return of £725pcm this property offers more than just its location. The property has won awards for its design and would be an excellent purchase with the prospect of perhaps living in it personally at a later date. It is a cracking all rounder. The yield return is perhaps lower than you would like at 4.1% but you’d be buying a property that would be highly in demand, so expect minimal void periods.
 
 
 
Guide Price: £225,000
Rent:  Approx. £725pcm
Yield: 4.1%
Find out more, click: http://www.rightmove.co.uk/property-for-sale/property-60751709.html


If you have seen another investment property and would value a second opinion, please contact me and I would be happy to discuss it with you.

Call:  01780 484 554
Email: david@upp-property.co.uk
Twitter: @UPPproperty

Alternatively, if you have a property and are unsure of its current value, please contact my colleague Adrian McCarthy on 01572 725 825 or email: adrian.mccarthy@upp-property.co.uk
 

Thursday, 21 July 2016

Stamford population set to rise to 160,200 by 2026


Stamford faces a predicament. The population is growing and the provision of new housing isn’t keeping up.

With the average age of a 'Stamfordian' being 41.8 years (compared to the East Midlands average of 40.0 years old and the national average of 39.4 years of age), the population of Stamford is growing at an alarming rate. This is due to an amalgamation of longer life expectancy, a fairly high birth rate (compared to previous decades) and high net immigration, all of which contribute to housing shortages and burgeoning house prices.

We commissioned some research by Durham University specifically for the South Kesteven District Council area. Known as the UK’s leading authority for such statistics, Durham University’s population projections make some startling reading…

For the South Kesteven District Council area ... these are the statistics and forecasts:

2016 population          140,140
2021 population          145,950
2026 population          151,482
2031 population          156,166
2036 population          160,293
 


The normal ratio of people to property is 2:1 in the UK, which therefore means...

We need just over 10,000 additional new properties to be built in the South Kesteven District Council area over the next 20 years.

Whilst focusing on population growth does not tackle the housing crisis in the short term in Stamford, it has a fundamental role to play in long-term housing development and strategy in the town.

The rise of Stamford property values over the last 6 years since the credit crunch are primarily a result of a lack of properties coming onto the market, a lack of new build properties and rising demand (especially from landlords looking to buy property to rent them out to the growing number of people wanting to live in Stamford, but can’t buy or rent from the Council).

Although many are talking about the need to improve supply (i.e. the building of new properties), the issue of accumulative demand from population growth is often overlooked. Nationally, the proportion of 25-34 year olds who own their own home has dropped dramatically from 66.7% in 1987 to 43.8% in 2014, whilst 78.2% of over 65s own their own home. Longer life expectancies mean houses remain in the same hands for longer.

The swift population growth over the last 30 years provides more competition for the young than for the more mature population.  It might surprise some people that 98% of all the land in the UK is either industrial, commercial or agricultural, with only 2% being used for housing, which means one could propose expanding supply to meet an expanding population by building on green belt – that’s a topic most politician’s haven’t got the stomach to tackle, especially in the Tory strongholds of the South of England where the demand is the greatest.
 
Some people suggest building on brownfield sites, but recent research suggests there aren’t as many sites to build on, especially in Stamford that could accommodate 10,000 properties in the next 20 years.

In the short to medium term, housing demand will continue to grow in Stamford (and the country as a whole). In the short term, that demand can only be met from the private rental sector, which is good news for homeowners and landlords alike as that keeps house prices higher.

In the long term though, local and national Government and the UK population as a whole, need to realise these additional millions of people over the next 20 years need to live somewhere. Only once this issue starts to get addressed, in terms of extra properties being built in a sustainable and environmentally friendly way, can we all help create a socially ecological prosperous future for everyone.

For more thoughts on the Stamford Property market, please visit the Stamford Property Market Blog: www.rutlandandstamfordpropertyblog.co.uk

Thursday, 14 July 2016

109 days to find a buyer for a Stamford Property


I had a homeowner from Great Casterton email me the other day. She had been following my blog www.rutlandandstamfordpropertyblog.co.uk for a while and wanted to pick my brain on when is the best time of the year to sell a property.

Trying to calculate the best time to put your property on the market can often seem something akin to witchcraft and, whilst I would agree that there are particular times of the year that can prove more productive than others, there are plenty of factors that need to be taken into consideration.

Even if you are putting your property on the market, you don’t know how long it will take to find a buyer.  At the moment, the latest set of figures for all 20 estate agents in Stamford, show the average length of time it takes to find a buyer for any Stamford property is as follows:-

Detached                    130 days
Semi                              88 days
Terraced                       85 days
Flat                              110 days
Overall average         109 days

In January 2016, the overall average time it took to find a buyer (again using data from all of the 20 Stamford Estate Agents) was 110 days.

So, on the face of it, things haven’t changed much over the last 6 months or so. When I looked at the data going back to 2009, a slightly different picture appeared…
 
Winter 2009 - 177 days           Summer 2009  - 170 days

and in more recent times …
 
Winter 2013 - 140 days           Summer 2013  - 134 days
Winter 2014 - 108 days           Summer 2014  -   79 days
Winter 2015 -   93 days           Summer 2015  -   92 days
 

 

 
Coming back to the present, even if you placed your property on the market today in Stamford, if it takes you on average a little over 15 weeks to find a buyer, then you can expect solicitors and the chain to take an additional 8 - 12 weeks after that, before you move.

It comes down to personal choice as to when you place your property on the market. Children often affect the decision; on one side you might delay putting that for sale board in your front garden so you can move in the summer school holidays, but on the other side, you might want to move sooner to be in the catchment area of a preferred school, in plenty of time for the next academic year?

There are times of the year when it's better to sell, and times when waiting a little longer can pay off in the long run. In a nutshell, I would say this is the way of the seasons ..

Spring: Customarily there are more house-buyers as the Daffodils show themselves
Summer: Sellers may miss out on house-buyers being on holiday
Autumn: The enthusiasm for buying homes returns
Winter: Interest diminishes as festive period looms 

What this means to buyers and landlord investors is that they often pick up a bargain in later months of the year, as there is less competition from owner occupiers. So, whilst there are better months to achieve a quicker sale, the only piece of advice I can give to every home  owner and landlord in Stamford, is do the right thing for yourself, do your homework and buy (and sell) with both your head as well as your heart

For more thoughts on the Stamford property market – visit the Stamford Property Market Blog: www.rutlandandstamfordpropertyblog.co.uk

 

Monday, 11 July 2016

The 3 Best Buy-To-Let deals in Stamford & Rutland this week...


Property 1:
2 bedroom semi-detached house for sale.  £159,950
Drift Gardens, Stamford.  On the market with Newton Fallowell
 
Anyone new to the BTL world will find the property the perfect investment.  Offered in excellent order, very modern, clean and low maintenance along with the right mix of outside space and a very low maintenance garden.  This type of investment would let very quickly and would also bring in a fantastic income of £650pcm which is over 4.8% yield.  A seriously solid first investment for anyone looking to take the plunge.
Price: £159,950
Rent: Approx. £650pcm
Yield: 4.8%
Click here for more details:http://www.rightmove.co.uk/property-for-sale/property-54979630.html
 
 

Property 2:
3 bedroom town house for sale. Guide Price £185,000
Graffham Drive, Oakham.  On the market with James Sellicks



Modern (tick), near town (tick), family home (tick).  A cracking investment for the Oakham rental market.  We could achieve £695pcm with this let and with the family homes in short supply locally, you will not be short of takers.  We manage a lot of modern 3 bed homes and they remain a firm favourite.  Yield return is over 4.5% so expect a quick turnaround with this purchase.


Guide Price: £185,000
Rent: Approx. £695pcm
Yield: 4.5%


Click here for more details:



Property 3:
1 bedroom flat for sale.  Guide Price £99,950
West Walk, Oakham.  On the market with UPP Property Agents

We have managed this property for the current landlord for a number of years and know what a fantastic let it has been. The property is occupied by a tenant that has remained in situ for the last 6 years and is willing to stay on. Buying a property with a tenancy in place is highly recommended for many reasons and with an income of £425pcm your yield return would be over 5.5% (based on a selling price of £92,000.
 
 

 
Guide Price: £99,950
Rent: Approx. £425pcm
Yield: 5.5%

Click here for more details:
 


If you have seen another investment property and would value a second opinion, please contact me and I would be happy to discuss it with you.

Call:  01780 484 554
Email: david@upp-property.co.uk
Twitter: @UPPproperty

Alternatively, if you have a property and are unsure of its current value, please contact my colleague Adrian on 01572 725 825 or email: adrian.mccarthy@upp-property.co.uk

Tuesday, 5 July 2016

This week's 3 BEST BUY-TO-LET property deals in STAMFORD & RUTLAND


Property 1:
2 Bed Terraced House for sale - £140,000
Ladywell, Oakham.   On the market with Gilbert & Thomas
 

2 bedroom properties within the Ladywell development have always been popular and having 10 properties currently under management with UPP Property Agents, we can give first hand experience that good tenants are always drawn to this part of town. Expected rental income of £575pcm and with a yield of over 4.9% this property has to be highlighted as a solid investment.

 
Price: £140,000
Rent: Approx. £575pcm
Yield: +4.9%
 
Click this link for more details:
 
 
 
Property 2:
2 Bed Terraced House for sale - £159,950
Little Casterton Road, Stamford.  On the market with Newton Fallowell.


A superb opportunity to purchase a fantastic rental investment and bringing in a yield of close to 4.9%. Little Casterton Road is located within a very short walk of the town centre and whilst this property offers 2 bedrooms, the property looks in fantastic condition giving a first time investor the perfect opportunity to take that giant leap to the rental market whilst relaxing in the knowledge that the property is a brilliant investment for the longer term.

Price: £159,950
Rent: Approx. £650pcm
Yield: 4.9%

Click this link for more details:


Property 3:
2 Bed Cottage for sale.  Guide Price £185,000
Church Street, Waltham on the Wolds.  On the market with UPP Property Agents.

A highly desirable village location close to Melton Mowbray, currently let to excellent tenants. The landlords have been achieving £595pcm on this property, but the next rent increase could bring a little more. So, with an expected income of around £625pcm and with the opportunity to purchase this property at £175,000 expect your investment to reach close to 4.3% in a village that could easily be seen as a retirement place as well. The property is old with a modern twist and we have experienced low maintenance with this property.

Guide Price: £185,000
Rent: Approx. £625pcm
Yield: c4.3%
 
Click this link for more details:


If you have seen another investment property and would value a second opinion, please contact me and I would be happy to discuss it with you.

Call: 01780 484 554
Email: david@upp-property.co.uk
Twitter: @UPPproperty

Alternatively, if you have a property and are unsure of its current value, please contact my colleague Adrian on 01572 725 825 or email: adrian.mccarthy@upp-property.co.uk
 

Thursday, 30 June 2016

145% Increase in Rutland Property Values since the Millennium


 
Since the Millennium, Rutland house prices have risen by 145.86%, whilst average salaries in Rutland have only grown by 51.27% over the same time frame.  This has served to push homeownership further out of reach for many ‘Rutlanders’ as they have to battle against raising considerable deposits and, as a result of new mortgage regulations introduced in 2014/5, meet sterner lending criteria.

The private rental market in Rutland has grown throughout the last 20 years with buy-to-let investors purchasing a high proportion of newly built residential properties that were built and designed for the owner occupier sales markets.  For example, in the Rutland and Melton constituency, roll the clock back 20 years and there were 35,421 properties in the constituency, whilst the most recent set of figures show there are 41,882 properties - a growth of 6,461 properties.

However, anecdotal evidence suggests that a large number of those 6,461 were bought by Rutland buy-to-let landlords, as over the same 20-year time frame, the number of rental properties has grown from 2,513 to 5,968 in the constituency - a rise of 3,455 properties.



Nevertheless, some say this historic growth of the Rutland rental market might start to change with the new tax rules for landlords introduced by Mr. Osborne over the last seven or eight months.  Yet the numbers tell another story.  Across the board, mortgage borrowing climbed to a 9 year zenith in March this year as the British property markets traditional Easter rush corresponded with landlords hurrying to beat George Osborne’s new stamp duty changes.  Buy-to-let landlords borrowed £7.1bn in March 2016 (the latest set of figures released) which was 163% up on the £2.7bn borrowed in the previous March.

Personally, I don’t think things will get worse in the buy-to-let market in Rutland and here are my reasons:

Firstly, what else are Rutland landlords going to invest in if it isn’t property? The stock market?  Since the Millennium, the stock market has risen by an unimpressive total of 5.54%, quite different to the 145.86% rise in Rutland property prices?

Secondly, its true the 3% stamp duty is the first blow on top of a number of other tax changes to be phased in between 2017 and 2021, such as landlords facing a constraint in their ability to offset mortgage interest and, if sizeable numbers of landlords do take the decision to sell their portfolios, this will lead to a substantial amount of second hand properties being put up for sale. Yet that might not be a bad thing, as I have mentioned in previous articles there is a serous shortage of properties to buy at the moment in Rutland: the stock of property for sale being at a 6 year all-time low.

Thirdly, if there are fewer rental properties in Rutland, as supply drops and demand remains the same (although ask any letting agent in Rutland and they will say demand is constantly rising) this will create a squeeze in the Rutland rental market and as a result, rents will rise.  In fact, I predict even if landlords don’t sell up, Rutland rents will rise as Rutland landlords seek to compensate for increased costs, which means more landlords will be attracted back.

For more thoughts, facts and figures on the Rutland property market, you might find the Rutland Property Market blog of interest: www.rutlandandstamfordpropertyblog.co.uk

Monday, 27 June 2016

This week's 3 Best Buy-To-Let deals in Stamford & Rutland

Property 1:
3 Bed Semi-Detached House for Sale:   £215,000
Willow Road, Stamford.  On the market with Newton Fallowell
 
Stamford rental market is as strong as ever and this type of property is still highly sought after, and one for any 'first time landlord' to consider. Expect a return of c.£750pcm.  Make no mistake, we could have this property let by the time it takes you to have read this article!
 
 
 
Price: £215,000
Rent: Approx. £750pcm
Yield: 4.1%
 
Click this link for more details:-
http://www.rightmove.co.uk/property-for-sale/property-60070034.html

 
Property 2:
3 Bed End of Terrace for Sale:  £187,500
Oakham.  On the market with Woodford & Co.


Close to town, close to the station and a very sound investment. Lots of positives with the modern property market. Apart from being a low maintenance property, these properties are always in demand by young families who look to let for at least 3 years.
 
 
 
The rental income of £695pcm is also attractive and it could be one of the properties where your investment grows without you realising you still own it!

Price: £187,500
Rent: Approx. £695pcm
Yield: 4.4%

Click this link for more details:
http://www.rightmove.co.uk/property-for-sale/property-42592809.html
 
 
 
Property 3:
2 Bed Semi-Detached House for Sale:  £184,950
Coniston Road, Edith Weston.  On the market with UPP Property Agents.
 
 
This property takes in outstanding views to the rear and the current tenant has been in situ for 6 years. They would be happy to sign another 6 years given the chance – which makes this property a fantastic purchase for many reasons. Current income of £530pcm (which is low – should be £595pcm).
 
 
This could also make a great property to retire to!



Price: £184,950
Rent: Approx. £530-£595pcm
Yield: 3.8%
Call: Adrian McCarthy, UPP Property Agents on 01572 725 825
Email: Adrian.mccarthy@upp-property.co.uk

Click this link for more details and to arrange a viewing:
http://www.rightmove.co.uk/property-for-sale/property-42592341.html


For a second opinion on any buy-to-let properties you are considering, please contact me and I will gladly discuss further with you.

Email: david@upp-property.co.uk
Tel: 01780 484 554
www.upp-property.co.uk

If you would like to find out your property's current market value, please contact my colleague and sales director Adrian McCarthy on 01572 725 825

Email: Adrian.mccarthy@upp-property.co.uk
Tel: 01572 725 825
www.upp-property.co.uk


 
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