Christmas Bargain - £119,950 on the Country Park Estate 5.5% return!

Harrison Murray have just listed this great 2 bed ground floor property with its own private garden and a garage in a block. These were built I believe as an affordable option on the Country Park Estate - I guess in the 1970's?

Its one of the nicest areas in Melton Mowbray and a great location for local schools. These typically let for £550 pcm which is a 5.5% return if purchased for the asking price. 

http://www.rightmove.co.uk/property-for-sale/property-63668129.html

New Street Asfordby, 5.3% return on £122,500 investment

This is a nice 2 bed on the market for sale with Harrison Murray for £122,500 and is in Asfordby.

It looks to be in good condition inside and would easily let for £550 pcm. This type of property lets really quickly.

http://www.rightmove.co.uk/property-for-sale/property-63426056.html

Melton Mowbray Town Centre Stunning Refurbishment 5% Return

This former office building has been beautifully refurbished and looks to have a thoroughly modern finish while retaining the character features. This property has large rooms and would let really well I think. It has a parking space at the back and the high spec finish will help it achieve a potential 5% return on investment.

http://www.rightmove.co.uk/property-for-sale/property-57231658.html

Uncertainty in the Melton Mowbray Property Market for 2017

I have been reading lots of articles in the media about uncertainty in 2017, if 2016 is anything to go by who knows what will happen!!

It got me thinking about the Melton Mowbray property market, employment levels and the availability of credit?

We have to realise that the chronic shortage of housing will keep prices buoyant even if lending does become more difficult.

We have seen lots of changes in Melton Mowbray since 1998.  If there has ever been a problem for people to borrow money or to secure a mortgage, it has always increased the numbers of people looking to rent a property.

The increased demand, and shortage of rental available, only results in rents increasing.   Perhaps it will become more viable for a landlord to invest if they can see the returns on a rental property grow.

The government do seem keen to keep increasing the taxation levels on landlords.   Without people investing in property there would be no Private Rented Sector to cater for those who choose to and need to rent.   It’s often their only option or the best option for their current circumstances.

I believe we will see those with some cash to invest still buying property, especially if the yields become more favourable, as the returns from savings are expected to remain low.  The increasing yields would offset the increasing taxation levels for landlords but it is not going to help the tenants of Melton Mowbray – many who are just about managing at the moment.

If you are already a landlord and concerned about the effect of a potential unsettled period there are things you can do to minimise your exposure to risk.   The main things are ensuring your property is well maintained and regularly inspected.   Make sure you have a comprehensive Buildings insurance with reasonable excesses – you don’t want any nasty surprises from an escape of water for example.

It seems very unlikely, but should employment levels in Melton Mowbray ever be affected, Landlords could consider taking out a Rent Guarantee.   If a tenant becomes unable to pay then the rental income will be protected and the costly eviction process will also be covered.   I do believe here in Melton Mowbray we are well placed geographically for people to be able to find work.

If you would like to discuss anything about the Melton Mowbray Property Market please call me on 01664 569700

2 Bed Investment Could See Return of Over 5% - Wellington Way, Melton

These ever-popular 2 bedroom properties are situated on a quiet development on the north side of town.  They always let quickly and easily and this particular example looks to be in great condition.

On the market for sale with Newton Fallowell with an asking price of £139,950, it could give the investor a yield of around 5%.

Full details can be found here:

http://www.rightmove.co.uk/property-for-sale/property-57254650.html

Mill Street, with parking for £150K - 5.2% return

This is a nice 3 bed with a utility extension that would appeal to families in Melton Mowbray and as it has off road parking it would easily let for £650 pcm. It is for sale with Harrison Murray for £149,950 and if purchased for the asking price would see a potential return of 5.2%.

As it has parking and a good size living space it would let really quickly!  

http://www.rightmove.co.uk/property-for-sale/property-57058141.html

With interest rates set to remain low what other options are out there for investors?

Putting your money in bricks and mortar has long been a preferred option for many people of Melton Mowbray.   It is often part of the retirement plan or a way of seeing some income from your savings.

Over 20 years the capital is going to increase even with the peaks and troughs of the property market, as a long term investment there is little out there that can match it!

Belvoir has just released the rental index for Q3 2016, a look at the monthly rental price movements.  The report analyses the ups and downs of the rental market, not just at a national level, but breaking down monthly rental averages in London, the rest of England, Wales and Scotland as well as regional level.

In the East Midlands the average rent for the third quarter of this year is £625 which is a 3.75%  increase on quarter 3 2015.  The quarter 3 2016 average versus the 2015 annual average rent of £593 shows an increase of 5.5%.

As long as there is demand the rental market will continue to grow.   Because of the last governments shift in policy away from home ownership, also the lack of houses being built, across the UK there is now an urgent need for more housing for students, migrants and families looking for three bed properties and four to five bedroom homes.

During 2015 and 2016, it is the first time since the recession where wages have increased faster than inflation.   I wonder though how Brexit will affect the cash in people’s pockets; this could cause rents to stabilise.  The returns should still be better than other investments can offer, but investing in the right type of property is essential.

Ensuring that the property is going to appeal a broad range of potential tenants will mean it will let quickly and have minimal void periods.

Know your local market – tenants looking to rent in Melton Mowbray will have a different set of demands from those looking in Leicester City Centre.

Follow my property blog for honest advice on rental returns; we only deal with letting property so it is key for us that you make the right investment. 

Tamar Road - family 4 Bed

The private rental market of Melton Mowbray is crying out properties like this one. It would achieve £750 pcm as it has been extended and has four bedrooms. 

It is on the market with Harrison Murray for £ 205,000 and its the type of family property that usually sees long term tenants.

http://www.rightmove.co.uk/property-for-sale/property-62431811.html

Saxby Road - £125,000 - 5.5% return

This is a nice example of a 2 bed terrace that has an open plan living area. It makes these sort of properties feel really spacious and really appeal to tenants. This one is for sale with Newton Fallowell and has been reduced to £125,000. You would be looking at a potential return of 5.5% on this one, especially if they would take an offer on the asking price!

http://www.rightmove.co.uk/property-for-sale/property-56491786.html

Tracking Rental Values in Melton Mowbray

This week I wanted to look at the cost of renting a property in and around Melton Mowbray.

Often the average monthly rents reported in the newspapers will consider the rents currently paid by tenants.  These days many tenants are staying longer in their rented property and they are paying below market rents. Even if the rents are reviewed each year they do not always keep pace with the rent you could achieve if it came on the market to be re let.  Many landlords do not look to increase a rent if they have a good tenant.

Tenants looking to rent a property now also Landlords looking to invest in a property need to know how much rent the property is going to be if it is marketed today.

I looked at two popular examples of a rental property and tracked the rents achieved per calendar month as each sort came up for re let.  The first thing I noticed was the rents seemed to stay very steady from around 2008 to 2011, which ties in with the difficult economic times the country was experiencing.

I looked at large 2 bed terrace properties, in good condition with an upstairs bathroom and a small garden.  Popular with tenants and investors this type of property has seen a rental increase of around 15% since 2011, they are currently achieving £575 pcm.

The good size 3 bed semi with a garage is always an easy type of property to find a tenant for.  These have also seen an increase in rent since 2011 but it is closer to 12% for these properties.  They are currently achieving at least £650 pcm.

Of course the rental return always depends on the area and the condition of the property.  Keeping a property well maintained will help maximise the rental return you can expect.

Investing in the right type of property will ensure you continue to achieve the returns you are looking for from your investment.   Good advice is essential before making any investment.    

2 bed under £125,000 Melton Mowbray 5.2% return

This is a smart 2 bed on the market for £124,950 with Newton Fallowell, its on Kestrel road. Its a nice property that I think would achieve £550 pcm. 

It will need a kitchen upgrade at some point in the future looking at the photos but doesn't look to be something that would need to be done immediately. 

http://www.rightmove.co.uk/property-for-sale/property-56787646.html

Will a new housing development in Melton Mowbray change the rental market?

I was asked this question this week and I had a look into the numbers of property for sale this month and during 2016. We need to understand the current property market before we can consider how it could be affected.

In Melton we have considerably lower numbers of property on the market for sale at the moment compared to 2014 and previous years. The previous average seemed to be around 250 properties for sale each month in the LE13 area.

Looking at the figures across the market, since November 2015 they have been sitting around 150 in the LE13 area and the last 3 months the numbers have started increasing - September 2016 saw
an increase of 24%.

We have seen no large developments in Melton since 2008. Melton Mowbray is a popular place for families to live, offering employment opportunities and good access to Nottingham and Leicester. If we can start to meet the demand of those looking to live in the town and surrounding villages then the town will do well. From the enquiries we have each day I don't think there will be a shortage of buyers or tenants for our area.

But what about the rental market? 

We have investors looking for property to purchase to see a better return from their savings, but it is a big investment and needs to be the right property. With fewer properties for sale their choice is limited and many investors like to purchase new build property. If we see more choice for the investor or new developments starting then there will be more properties bought to let out. Then hopefully we can start to ease the pressure on the properties coming available for let. Tenants will have a bit more choice and as more tenants are looking for long term homes they may have a chance to find something in the right area. 

If you are considering investing in property give me a call for an honest opinion on rental returns please give me a call 01664 569700.

Branston Crescent - a good investment for capital growth

Melton Premier have this 2 bed semi up for sale for £ 145,000 it is on a popular estate and has off road parking. It looks to be in a good condition so would let straight away.

I would expect it to let for £575 pcm which would give a potential return of 4.7% if purchased for the asking price. This type of property would see a good level of capital growth over the years as the footprint is much larger than a modern property.

http://www.rightmove.co.uk/property-for-sale/property-62763461.html

Increasing numbers of families affect the Melton Mowbray Property Market

We are seeing such high demand for rented property in Melton Mowbray and it seems to be mirrored across the UK. After talking to fellow franchise owners it seems all parts of the country are seeing unprecedented demand for rental homes.

It got me thinking about the numbers. Looking at the figures from the Office for National Statistics (ONS) relating to families and household numbers in the UK, it showed some interesting results.

The total number of families in the UK is just under 19 million, of that 12 ½ million are married couples.

If you compare the figures from 1996 to those for 2015 - Numbers of married couples with children has decreased by 10% since 1996 but the numbers of married couples without children has increased by 4.6% over the same time period.

Interestingly the numbers of co-habiting couples with children is currently just over 3 million, and this number has increased by 130 % since 1996. The number of co-habiting couples without children has increased by 105%.

The number of lone parent families is currently sitting around the 3 million mark and has seen a 23% increase in numbers since 1996.

The growth in the numbers of families is mainly in the co-habiting couples – in my opinion are the most likely to be renting; typically early on in a relationship and not in a position to secure a mortgage. The number of lone parent families has also seen an increase. Rental properties can provide accessible housing for those going through a change in circumstances and there needs to be good quality rental property available.

We are seeing the low levels of house building across England, in the year to June 2016 there were just under 140,000 finished new build houses. The ONS state if the number of households in England grows to 24.3 million in 2021 as projected, this would be equivalent to an additional 221,000 households per year. We really need to see some more house building or we the current housing market crisis will continue.

In my opinion it illustrates the national problem we are seeing with the housing market and the struggle families are going to have until something changes. The only way to relieve the pressure on the existing rental market stock is to build more houses. Until we do rents will keep on increasing and there will be big competition for each new listing.

If you are considering investing in rental property in the Melton Mowbray please follow my property blog for honest advice on potential rental returns. 

Asfordby - potential 5.7% return

This really smart 2 bed apartment is on the market for £115,000 and is in Asfordby on a new development. It would let for £550 pcm - potential 5.7 % return if purchased for the asking price - has to be worth a look...

http://www.rightmove.co.uk/property-for-sale/property-56513674.html

Modern 3 bed investment property £157,500 Melton Mowbray

This 3 bed semi has just been added by Bentons for £157,500. With the shortage of new builds, that are not executive and well out of an investors budget, this type of property could be a great investment.

It is a 3 bed semi and would easily let for £600 pcm and if purchased at the asking price then you would be looking at an easy 4.5% return. 

http://www.rightmove.co.uk/property-for-sale/property-56447860.html

6.4% return on £75,000 investment..

I am not always keen to recommend going out of town but this currently yields 6.4% return if you don't take into account the ground rent. Its a one bed flat on the market for £75,000 with Newton Fallowell and has a tenant paying £400 pcm. 

That is the amount I would have suggested as an expected rent and depending on the outlook of the flat these can prove popular with tenants. 

http://www.rightmove.co.uk/property-for-sale/property-54049987.html

Park Road, Melton Mowbray - Potential 7.8% Yield

This property on Park Road in Melton Mowbray has been on the market for sale for a while now and has just been reduced to offers over £65,000. This is a one bed flat which is in good condition. 

Although it doesn't come with parking it does have private outside space and we have let it before. In the current rental market I would expect it to let easily for £425 pcm

http://www.rightmove.co.uk/property-for-sale/property-56105572.html

How the Wealth of 30 year olds affects the Melton Mowbray Property Market

The recent report from the institute of fiscal studies prompted some interesting headlines around the wealth and income of 30 year olds today vs 30 year olds 10 years ago - just before the recession kicked in.

The study showed by the age of 30 The property wealth of those born in the 1970's is nearly double that of the property wealth of people born in the early 80's when they turn 30.

As for incomes - the figures show that those born in the early 80's do not have higher incomes than their predecessors did at the same age. This partly reflects the the impact of the recession on the incomes of working age households, but it is also the result of a period of sluggish income growth from the early 2000's onwards and the weakness of the recovery in incomes since the recession. Among those aged between 25 and 55 the real average income in 2014-15 was only 2% higher than a decade earlier, compared with an increase of 26% between 1994-95 and 2004-05.

Looking at Melton Mowbray Sold house prices so far this year - using the data on Rightmove and Land registry - Modern 2 bed semis are selling for £140,000 and 3 bed semi's built around the 60's (bigger plots and floor plans generally than a modern home) are going for over £160,000.

With house prices rising (in my opinion this has a lot to do with the lack of supply) and incomes not keeping up its easy to see why so many people are renting for longer. This fuels the rent rises as there are fewer properties available to let and makes it harder for people to save. It seems to be a continual cycle which can only be broken in my opinion by the building of more houses. Let's hope 2017 brings a more optimistic housing market for the young people of Melton Mowbray.

If you are considering purchasing a property to let please do not hesitate to give me a call for honest opinion on rental returns in and around Melton Mowbray. 

Algernon Road, £130,000 - 5.4% Yield

This is a beautifully presented property that has just come onto the market at offers over £130,000 with Harrison Murray. Its on Algernon road and has a slightly different layout to the normal terraces that I think makes the most of the space. 

It would let for £595 pcm and looks like it will need nothing doing to it so could give a potential yield of 5.4%. 

http://www.rightmove.co.uk/property-for-sale/property-62233514.html

Thinking about Gas Safety Week!!

Last week was gas safety week.

Having a gas safety check done by a registered Gas Safe engineer is an annual requirement of every landlord. The engineer must test all gas appliances in a property every year, and it’s a good idea to include the checking of carbon monoxide alarms while they are at it.          

What worries me is the number of times a gas safety check is not kept up to date. This is a vital part of a landlords responsibility and the risks if it gets forgotten are not worth thinking about!

For our managed properties we have robust systems in the office to ensure that we can request the checks to be carried out during the month before the due date. We are also audited annually and part of this includes ensuring all our managed properties have a valid gas safety check. This is a simple thing to ensure if it is part of your routine when managing 300+ properties.

If you are a landlord that self manages their property then you must not under estimate the importance of this check. Everyone is aware of the health and safety aspect of maintaining a boiler or gas appliance but there can be other implications to not having a Gas safety certificate. But you need to consider the implications if a tenancy starts to go wrong.

Should a landlord need to gain possession a property a landlord will generally rely on a section 21 notice. If they need to gain possession through the courts they will require a landlord to supply not only the Tenancy Deposit Registration Certificate but also a copy of the EPC for the property and an up to date Landlords Gas Safety Certificate.

If a tenant will not allow access for the check to be carried out it can be a sign of problems at the property. My advice to any landlord if self managing is to set up a reminder the month before it is due and to keep records of when the engineer was instructed or appointments with the tenants made.

If you find yourself in a situation where the tenant has stopped paying rent or you are worried about being able to get the gas safety check completed please give me a call. I am happy to discuss, in confidence,  any circumstances giving landlords cause for concern. 

Investments in Melton Mowbray under £125,000

Pick of the crop!!

Tidy Terrace on Rosebery Avenue, Melton Mowbray.
Listed for £119,950 with Melton Premier. This is a 2 bed with a little courtyard and is in excellent condition looking at the photos. I would think we could achieve £575 pcm for this property - potential 6% yield ...

http://www.rightmove.co.uk/property-for-sale/property-44314791.html

         

Another 2 bed, this time on the market with Anthony Hancock for £125,000. Its on Blyth Avenue which is a 10 minute walk from the town centre and a quiet estate. this would also achieve £ 575 pcm - potential 5.5% yield

http://www.rightmove.co.uk/property-for-sale/property-60634226.html

       

My Favourite! Rosebery Avenue again in Melton. This is a 3 bed that has been on the market since 20th July this year with Harrison Murray. It is a nice looking property, from the pictures, and would achieve £575 so if purchased for the asking price of £120,000 a potential yield of 5.7%

http://www.rightmove.co.uk/property-for-sale/property-55238938.html

         

As with any property investment remember there is stamp duty to pay when purchasing a buy to let.
https://www.stampdutycalculator.org.uk/