Thursday, January 28, 2016

Melton Mowbray Landlords count the cost of a Conservative Election win

Can you remember 10.05pm on Thursday, 7th May 2015 ... with the shock news that BBC Exit Polls suggested the Conservatives would be returned with majority? Melton Mowbray landlords had something to cheer about as the Conservatives were always considered to be a political party that accepted the importance of the rental market, supported its development while properly targeting the lawbreaker landlords renting out below standard rental accommodation.

Since May though, George Osborne announced future rises in stamp duty for buy to let landlords and a change in the interest relief on buy to let mortgages, some people have started to question that loyalty.

I will admit the loss of mortgage higher rate tax relief will make a number of properties not stack up financially. The new rules are likely to slow demand in the Melton Mowbray housing market, which is in fact good news for the other landlords, as there is less competition from other rental properties available to let.  

Just a thought, but making Melton Mowbray landlords think twice and
run their numbers more cautiously is not such a bad thing.

Over the last 12 months, property values in Melton Mowbray have risen by 3.2%, not bad when you consider inflation is running at -0.1%.

The really interesting information is the value growth, but what types of property are actually selling in Melton Mowbray?  Looking at all the properties sold, as recorded by the Land Registry, within 2 miles of the centre of Melton Mowbray in September 2015 (this data always runs a couple of months behind the house price data) compared to September 2007 (a couple of months before the credit crunch started to bite and the subsequent property crash).

Sept 2007
Sept 2015
Detached in Melton Mowbray
Semis in Melton Mowbray
Terraced Houses in Melton Mowbray
Apartments / Flats in Melton Mowbray

Now I have mentioned in previous articles that the numbers of properties selling in the town has certainly dropped post 2008, but what amazed me were the drop in the number of apartments selling in Melton Mowbray compared to the rise in sales of detached, semis and terraced properties.

Less properties are selling than last decade in Melton Mowbray
and the types of properties selling have changed ...
interesting times ahead for the Melton Mowbray Property market!

Therefore, all I can say to the landlords of Melton Mowbray is do your homework, make sure the numbers do stack up, take advice and opinion from professionals and above all, for those of you planning to add to your portfolio, buy the right property at the right price. Please do not hesitate to give me a call or pop into our office on Burton Street.

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