Post Brexit...Stamford Property Prices set to drop £18,100 in the next 12 months?

Even the sanest person in Britain has to admit the Brexit vote will, in one shape or another, affect the UK Property market.  Excluding central London (which is another world), most commentators are saying prices will be affected by around 10%.  So, looking at the commentators’ thoughts in more detail, property values in Stamford will be 10% lower than they would have been if we hadn’t voted to leave the EU.

 

As the average value of a property in the South Kesteven District Council area is £181,000, this means property values are set to drop for the average Stamford property by £18,100.  But, before we all go into panic mode, remember the devil is always in the detail.

Look at the phrase again, and I have highlighted the relevant part “Property values in Stamford will be 10% lower than they would have been if we hadn’t voted to leave the EU”.

Property values today, according to the Land Registry are 6.81% higher than a year ago in the South Kesteven District Council area. The 12 months before that they rose by 3.14%, and the 12 months before that, they rose by 6.28%.  If we hadn’t voted to leave, I believe using these figures, we could have safely assumed Stamford House prices would have been 5% higher by summer 2017.

And, that’s the point.  We won’t see a house price crash in Stamford, it’s just that house prices in a year’s time will be 5% lower than they are now (i.e. 5% less the 10% lower figure because of Brexit). Let’s look at the historic figures and how that compares to today’s figures for the South Kesteven District Council area and Stamford as a whole.

Average Value of a property 20 years ago                £  47,800

Average Value of a property 10 years ago                £157,800

Average Value of a property 2 years ago                  £164,300

Average Value of a property 1 year ago                    £169,500

Average Value of a property today                            £189,000

Projected Value of a property in 12 months’ time      £171,950

 

Therefore, I believe the average value of a Stamford property will be £9,050 lower in 12 months’ time than today.

 

That’s not to say Stamford property prices might not dip slightly in the run up to Christmas (in fact they always have done just about every year since the year 2000 and most of those were “boom years”).  But in 12 months’ time, this is my considered opinion of where Stamford property values will be, and looking at historic prices, even if I (and many other property market commentators) are wrong and they drop 10% from TODAY’S figure - in the whole scheme of things, we have been through a Credit Crunch, Black Monday and 15% interest rates over the last 20 to 30 years, and still Stamford house prices have always bounced back.
 

Whilst the UK's vote for Brexit has created an uncertainty in the housing market, there is no need to panic and prospective buyers should merely use common sense about their purchases.  I always say to people to be prudent and if you are taking out a mortgage, at some stage during the life of that mortgage, circumstances will be difficult.  We won’t have a 2008 Credit crunch fire sale of properties because after the ‘Mortgage Market Review’ which took place in the spring of 2013, mortgage borrowers are not as highly leveraged this time around.  As a result of this, with any luck there will not be too many distressed sales, which cause widespread price reductions.

This week's 3 Best Buy-To-Let deals in Stamfrd and Rutland

,

Property 1:

3 Bed Terraced House for Sale.      £185,000

Jubilee Court, Oakham.  On the market with Newton Fallowell

 

Possibly the best investment on the market in all of LE15 for a first time rental investor. Located close to town on Northgate and a 5 minute walk to the station, most active tenants looking a property currently would pick this as an excellent home. Low maintenance modern home and with parking. A true all rounder. Rental income of £650pcm c4.3% yield. A worthy investment.

Click here for property details:
http://www.rightmove.co.uk/property-for-sale/property-43537149.html

Price: £185,000
Rent: Approx. £650pcm
Yield: c4.3%
 
 
Property 2:
3 Bed Link Detached House for Sale.   Offers Over £190,000
Springfield Way, Oakham.  On the market with Moores Estate Agents
 

Another fantastic investment to hit the open market is this wonderful link detached property. We have so much demand for this type of property from long term tenants. The demand for this area and type of property is extremely buoyant and we would expect to let out immediately. Expected return of £675pcm - £695pcm. Excellent yield of 4.4%

Click here for property details:
http://www.rightmove.co.uk/property-for-sale/property-60995345.html

 

Price: Offers over £190,000
Rent: Approx. £695pcm
Yield: 4.4%

 

 

Property 3:

2 bed cottage for sale.  Guide Price £185,000

Church Lane, Waltham-on-the-Wolds.  On the market with UPP Property Agents

We’ve been asked by our current landlord to market this property for sale and the property can be available and sold with a tenant in place. Current income of £595pcm, although we would expect a return of £625pcm.

Located close to Melton Mowbray and offered in excellent order. I’d highly recommend this property to all experienced investors looking for something a bit different. Expected yield of 4.3% (based on £175,000).

Click here for property details:http://www.rightmove.co.uk/property-for-sale/property-42667701.html

Guide Price: £185,000
Rent: Approx. £595-£625pcm
Yield: 4.3%
For advice on buying, selling, renting and managing your homes and property investments in Rutland and Stamford, please call David Crooke on 01572 725 825 or email: david@upp-property.co.uk
 

The Stamford Love Affair with its 2,800 Terraced Houses

Call me old fashioned, but I do like the terraced house.  In fact, I have done some research that I hope you will find of interest.

In architectural terms, a terraced or townhouse is a style of housing in use since the late 1600’s in the UK, where a row of symmetrical / identical houses share their side walls.

 

 

 

 

 

The first terraced houses were actually built by a French man, Monsieur Barbon around St. Paul’s Cathedral within the rebuilding process after the Great Fire of London in 1666.

In fact, it was the French that invented the terraced house around 1610-15 in the Le Marais district of Paris with its planned squares and properties with identical facades. However, it was the 1730’s in the UK, that the terraced/townhouse came into its own in London and, of course, in Bath with the impressive Royal Crescent.

Although Georgian architecture features in the heart of Stamford, many of the terraced houses on the tributary roads were built in the Victorian era.  Built on the back of the Industrial Revolution, with people flooding into the towns and cities for work in Victorian times, the terraced house offered decent livable accommodation away from the slums.  The majority of Victorian Stamford terraced houses are based on standard design of a ‘posh’ front room, a back room (where the family lived day to day) and scullery off that.  Off the scullery a door opened to a rear yard, whilst upstairs, there were three bedrooms (the third straight off the second).

Interestingly, the law was changed in 1875 with the Public Health Act and each house had to have 108ft of livable space per main room, running water, its’ own outside toilet and rear access to allow the lavatory waste to be collected.

It was the 1960’s and 70’s when inside lavatories and bathrooms were installed (often in that third bedroom or an extension off the scullery), gas central heating in the 1980’s and replacement uPVC double glazing ever since.

Looking at the make up of all the properties in Stamford, some very interesting numbers appear.  Of the 9,386 properties in Stamford …

1,957 are Detached properties (20.8%)

3,291 are Semi Detached properties (35.0%)
2,822 are Terraced / Town House properties (30.0%)
1,314 are Apartment/ Flat’s (14.0%)

And quite noteworthy, there are 2 mobile homes, representing 0.02% of all property in Stamford. 

 

When it comes to values, the average price paid for a Stamford terraced house in 1995 was £45,610 and the latest set of figures released by the Land Registry states that today that figure stands at £277,930, a rise of 509% - not bad when you consider detached properties in Stamford in the same time frame have only risen by 294%.

Some buy-to-let landlords and first time buyers I speak to think that Victorian terraced house is expensive to maintain, but I recently read an English Heritage report that stated maintaining a typical Victorian terraced house over 30 years is around 60% cheaper than building and maintaining a modern house- which is quite fascinating don’t you think?

Don’t dismiss the humble terraced house – especially in Stamford!  For more thoughts on the Stamford Property Market, visit the Stamford Property Market Blog:

www.rutlandandstamfordpropertyblog.co.uk 

 

If you would like advice on an existing property you own, or for guidance on what to buy in Stamford and Rutland (and what to avoid!), please contact David Crooke, managing director, UPP Property Agents on 01780 484 554

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 

 

 

 

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

Find out more, click: http://www.rightmove.co.uk/property-for-sale/property-59137178.html

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%

Find out more, click: http://www.rightmove.co.uk/property-for-sale/property-60743291.html

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 

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

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

 

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:

http://www.rightmove.co.uk/property-for-sale/property-54968572.html 

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:

http://www.rightmove.co.uk/property-for-sale/property-39923388.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 on 01572 725 825 or email: adrian.mccarthy@upp-property.co.uk

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:

http://www.rightmove.co.uk/property-for-sale/property-60326603.html

 

 

 

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:

http://www.rightmove.co.uk/property-for-sale/property-60336683.html

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:

http://www.rightmove.co.uk/property-for-sale/property-42667701.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 on 01572 725 825 or email: adrian.mccarthy@upp-property.co.uk