Its getting harder and harder to find 3 beds around £150,000 that do not require a lot of modernisation. This lovely 3 bed on Charnwood Drive in Melton Mowbray is on the market for £155,000 with Purple Bricks. It is in a good spot and would easily let for £ 650 pcm - a potential 5% return.
HM Land registry have released this month the data for the House price index for England year to September 2018. It lists the annual price increases for the regions and Melton Mowbray is reported to have achieved a 12.8% increase in average house prices from September 2017 to September 2018.
You may have seen the Daily Mail reports talking about the North / South divide in property inflation being over, I am not sure that 12.8% increase is enough to say there is no longer a divide but it is certainly showing that the East Midlands is catching up!
We know that Melton Mowbray is in a great location - convenient for Leicester, Nottingham and Grantham and having a good supply of excellent primary and secondary schools. It has always been a popular choice for families and sees a high demand for rental properties.
The Daily Mail article talked about people moving looking for a better value property. Melton Mowbray certainly offers a lot of house for your money for anyone moving up from the southern regions.
Personally I have seen friends returning to the area this year now they are looking to settle down after working in London since graduating. When they are ready to buy it is the East Midlands that can provide access to employment opportunities and is still close enough to easily see friends and visit London.
I believe the value of the properties in Melton Mowbray will continue to increase as the East Midlands continues to grow in strength economically and the town will provide a sound investment for anyone looking to purchase a property.
To get an up to date property valuation or honest opinion on the rental return of a buy to let please do not hesitate to contact me. Charlotte Baker 01664 569700
This is a great opportunity for an investor looking for a return on investment from day 1. The detached Victorian house and converted stables offer 4 apartment's for sale and 2 semi's and it includes the freehold so the new owner will have control of the expenditure. The developments has been beautifully refurbished and has attracted 98.6% occupancy rates over the last 5 Years and achieves a good yield currently. The full details are here but give me a call to discuss it in more detail. Charlotte Baker 01664 569700 https://www.rightmove.co.uk/property-for-sale/property-57634986.html
Negative media stories surrounding non acceptance of tenants on housing benefit cast landlords and agents in a bad light. A decision like this can be down to the restrictions imposed by mortgage or insurance companies. It can also be down to bad experiences in the past.
Housing benefit - soon to be included in Universal Credit - is paid directly to a tenant and is in no way a definite income for a landlord as tenants’ situations change as do the way benefits are calculated.
Any tenants looking for a rental property while claiming housing benefits will require a guarantor who is earning enough to cover the income criteria, should a property owner accept it.
Increasingly low levels of social housing availability result in councils using every option to prevent an eviction. The Deregulation Act, which from October the 1st 2018 will apply to all assured shorthold agreements, irrespective of when they began, sets out criteria required of a tenancy to utilise a section 21 notice. If the landlord can not evidence a gas safety certificate or How to Rent guide - among other things - being given to the tenants BEFORE the tenancy commenced there is a possibility they will not be able to rely on a section 21 to regain possession of a property.
When a landlord serves a section 21 notice they are doing so because they require the property back. If councils are forced to look for ways to help the tenant stay due to no places for them to be housed then landlords are going to be forced to use the court system to regain possession.
It is essential if you are to be sure of an eviction to serve the right information at the beginning of the tenancy AND have evidence of you having done so. A good letting agent will know this and be able to demonstrate how they record and provide this information to a tenant. There are insurances available to protect you from costs incurred in just this sort of scenario.
It is indeed a worrying trend for landlords as more investors are put off by legislation-heavy tenancies and increasing tax burdens. The key to successful property investment is to DO YOUR RESEARCH.
Understand the local market and what you are looking for from your property investment. To be successful these days it is all about planning for the future and long term gains. Make sure your tenancy is set up correctly at the start. Most tenancies in Melton Mowbray are lasting longer than 2 years so it is worth the cost at the beginning to ensure peace of mind.
We need a private rented sector that encourages landlords to invest in the property and stick with the investment long term. If the landlord can have a hassle free investment elsewhere with less tax liability then they will come out of the property market. If they do then there will be less homes available to rent and rents will increase. People will not be able to save for the large deposits they need so this will not help those saving to buy.
We need a balanced property market where people have access to reasonably priced, well maintained rental property and a choice of property to buy when they are looking to do that. The only way this will happen is by more property being built. Year on year the targets for new building have not been met and this is going to take a long time to correct itself or a drastic drop in population to balance supply and demand.
In the mean time rents will continue to increase. If you would like any help or advice with a property investment or an Assured shorthold tenancy issue please give me a call. Charlotte Baker 01664 569700
Moores are selling this property advertised at £149,950 on Kennet Way. It looks to be in good order inside and if the garden and bathroom are as nice the we could easily let this for £600 pcm. This sort of property should see a higher level of capital growth over time than a modern property as it benefits from a larger plot size. https://www.rightmove.co.uk/property-for-sale/property-75448556.html
It feels to me like we are going through a period of re-adjustment. The landlords who invested when we carried out our first buy to let seminars in 1998 were lucky enough to buy at a time when you could easily achieve a 10% return on your investment. Some of those landlords are the very ones who are selling their rentals now to release the equity for the next chapter in life.
A buy to let investment has a job to do - It may be part of a pension plan or to provide for children as they leave home. The aim of many of our landlords was for the rent to pay off the borrowing required to purchase the property in the first place. Fast forward 15 - 20 years and they are in the position of having an income giving asset to utilise to supplement a pension or to sell and release funds.
Any property owner looking to sell should get the right advice when it comes to tax planning. Selling property can create a tax liability for the owner and effectively managing a property portfolio along with other investments can help you to reduce the levels of Tax you could pay.
But what does these landlords selling mean for the Melton Mowbray property market?
There are still many people looking to invest in property. The returns may not be what we saw back in 1998 but Melton Mowbray property has proven to be resilient to recession; our tenants are predominantly families, so there will always be demand for good quality rental property. In my opinion in the long term the demand from tenants will continue to outstrip supply of property and we will continue to see rents rise improving the returns for investors.
If you purchase a property to let you must do your research - invest in the right property to minimise void periods and put money aside to keep the property in good order and well maintained.
Consider your exit strategy and any future tax implications. Are you purchasing the property as Joint Tenants or Tenants in Common with specified percentage shares as this will greatly impact the inheritance position. From today until 2020 there will be key buy to let changes that will affect thousands of landlords across the UK and potentially reduce net income.
If you get the right advice then you can maximise the returns from a property portfolio. Please give me a call if you would like to discuss property investment or seek advice about tax liabilities.
This is a spacious 2 bed property for sale with Mike Ford for £139,950 on Asfordby Hill. This area is popular with tenants as it allows easy access for those commuting to Nottingham and Leicester and is 5 minutes drive from Melton Mowbray with a short walk to a Primary School. This looks like it needs very little doing to it to be ready to let and we would expect to get £595 pcm if it went on the market to let this week... https://www.rightmove.co.uk/property-for-sale/property-75347528.html
This 2 bed bungalow has been on the market with Shoulers since April and is listed for £189,950. A bungalow can make a great investment, they rarely come onto the rental market to let are in high demand. This would achieve £650 pcm easily, especially as it is on the Country Park Estate. https://www.rightmove.co.uk/property-for-sale/property-64809925.html
The last few years have really felt like the rents have started to increase in Melton Mowbray and the surrounding villages. But what does the data show? We have analysed our data for rental values across the whole of the East Midlands over the last 10 years.
When the recession hit in 2007 we started tracking the data across the region to pull together the rental figure analysis. We caught it just in time to see the effect of the recession on the private rental sector in our area.
Many offices saw relatively flat rents during the recession. The figures show how the effect of the recession on the rents was not reversed until 2015 when we started to see rental levels higher than 2007.
The initial slump in rents when the recession first kicked in can be attributed to the increase in rental stock on the market as property owners were unable to sell property as easily. Although we saw a quick increase in numbers of rentals on the market there were also a lot of tenants looking to rent as there were less mortgages on offer and a much steeper borrowing criteria.
As well as property supply affecting rental values, wages also have a large impact on what rent a property can achieve. We believe that wages are the biggest driver of rent increases.
Unlike house prices, which can carry on rising irrespective of what is happening to wages, rents appear to flat-line when wages rise at less than inflation. We don't tend to see rents rise until wages are increasing at a faster rate than inflation. This means that in areas where there is a shortage of supply versus demand, we see rents rise for a few quarters, then they tend to flat-line again, even if demand remains higher than supply as tenants simply cannot keep paying more rent than their earnings.
This is also likely to be partly linked to tenant referencing / insurance companies requiring 2.5 - 3 times salary to pass affordability tests.
In Melton Mowbray, after the start of the recession we saw more properties come onto the market to let as property owners could not sell but the demand remained high. This did mean rents dipped slightly then flat lined until 2014 and did not see a growth back to pre 2007 levels until 2015.
We are now seeing higher rents achieved each time a property is coming back onto the market to be re-let. For example in 2014 a 3 bed semi detached property in good order with a garage would achieve around £595 pcm and in today's market we would expect to easily achieve £695 pcm - a 16% increase.
In the future I believe rents will continue to rise as the supply of rental property in the private rented sector is outstripped by demand from tenants and this should improve the yields available for investors.
If you have a property let out and you would like to discuss the rental value or are considering an investment property please feel free to give me a call or pop into our office on Burton Street.
A 2 bed in Asfordby has come onto the market for auction. This property is achieving a rent of £550 pcm - the guide price on the auction is £120,000, that's a 5.5% yield if it goes for that. We are aware the tenants are long term tenants so this could be worth having a look... http://www.rightmove.co.uk/property-for-sale/property-73570310.html
This 4 bed property is being advertised for £200,000 with Harrison Murray. It is the sort of property that would let really quickly to a long term tenant and would provide a return in the region of 4.5% yield. This might not be as good as some other properties but you would see minimal void periods and have little hassle with a property like this one. This is a really good investment for someone looking to attract a long term tenant as it will suit a small family and there are few properties like this on the rental market - affordable 4 beds. Definitely one to consider! http://www.rightmove.co.uk/property-for-sale/property-73289363.html
Fantastic family property for sale on Waltham Rise just off Baldocks Lane and is being marketed by Melton Premier for £169,500. You would be looking at 4.7% - 5% return on the investment and long term tenants so it might be the type of property an investor looking for a pension income may want to consider. The interior looks to be in great condition too so not a lot of work required to get it let! http://www.rightmove.co.uk/property-for-sale/property-71081660.html
This 2 bed semi-detached property is being marketed by Middletons for £149,950. It is in Asfordby Valley, has a nice garden and a modern dining kitchen. It wold easily achieve £600 pcm on the rental market and I think would appeal to tenants looking for a long term rental property. http://www.rightmove.co.uk/property-for-sale/property-64658122.html
It looks like there is landlord selling a chunk of a portfolio on Rosebery Avenue near the centre of Melton Mowbray. There are three terraces being marketed by Newton Fallowell - all in the region of £125,000 with tenants currently paying £535 pcm. These properties always let well if they are well maintained and give a potential return of over 5% from day 1. http://www.rightmove.co.uk/property-for-sale/property-64731055.html
From the 1st of April 2018 all properties rented out in the private rented sector must have an EPC rating of E or above. This applies to all tenancy renewals and new tenancies after the 1st April.
It will become unlawful to let out a property with an F or a G rating unless there is an applicable exemption.
Landlords doing so can face a civil penalty of up to £4000. Demonstrating that a tenancy has been correctly set up is required when looking to carry out an eviction so it is crucial that landlords are aware of the regulations.
The government have also announced that from the 1st April 2020 every let property with an EPC rating of F or G will be required to improve the energy efficiency of the property. It really is time to plan improvements if your property falls into the F and G bands.
There are exemptions that can be applied for, if the property is listed or in a conservation area for example, where the work would not meet planning guidelines. The local planning office will advise on this and I am sure there will be a cost to applying for the exemptions.
It is a good idea for landlords to be prepared and plan for any improvements prior to their property coming up for re let. Many properties have EPC’s dating back to when they were first required and are due to be re done as they have now reached to 10 year mark.
The first thing to do is to get an upto date EPC done as the way in which these are assessed has changed over the years and it may be that the rating on the property has changed. Before this is done it is advisable to take some cost effective measures to improve the properties chance to get above the F. Sometimes simple things like energy efficient light bulbs can make all the difference.
Some local authorities also offer grants to help landlords improve the properties and there are schemes out there to help with insulation.
We are talking to all our landlords that this may affect and should you wish to discuss anything related to your rental property please feel free to give me a call.
Charlotte Baker Belvoir Melton Mowbray 01664 569700
This 3 bed on Edendale Road is listed with House Simple for £170,000. These 3 beds easily let for £650 pcm, they have large bedrooms and a dining kitchen so suit the family renters. This property looks like it could be a quick turn around for the rental market - an easy 4.5% return if purchased for the asking price... http://www.rightmove.co.uk/property-for-sale/property-72059060.html